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(b) The Tenant agrees to pay the County without demand at its office, or at <br /> such other place or places as County may from time to time designate in writing, the <br /> following rents for the aforementioned Premises for the term of this lease: <br /> Lease year 1 (June 1, 1997 through May 31, 1998): $7,860 per annum ($655/month) <br /> Lease yeas-Z , 1999): $8,135 per annum <br /> ($677.93/month) <br /> (c) At the commencement of this Lease the Premises is owned by County <br /> and as such is exempt from ad valorem taxes as provided in Article V, Section 2 (3) of <br /> the North Carolina Constitution and North Carolina General Statutes 105-278.1. During <br /> the term, Tenant agrees to make payments to County in lieu of taxes, as additional rent, <br /> in amounts equivalent to Tenant's pro-rata share of property taxes that would be lawfully <br /> assessed if the Premises were taxable by County and any municipality in which the <br /> Premises is located. These payments are hereafter referred to as "the payments in <br /> lieu". This agreement to make the payments in lieu is to eliminate the competitive <br /> advantage accruing to Tenant, a profit-making enterprise, from the use for profit of <br /> County's tax exempt property. county shall bill Tenant annual and no later than <br /> December 1 of each year during the lease term for the full amount of the payments in <br /> lieu. Tenant will submit payment to County on or before December 31, 1997 in an <br /> amount equal to the payments in lieu for the period June 1, 1997 through May 31, 1998 (p <br /> and on or before ece e <br /> p � 31 j2R9. County and Tenant recognize that the <br /> annual payments required in this subsection each span two tax years and will therefore <br /> require estimates based on estimated tax rates. Upon receipt of actual tax rates, <br /> County will reconcile the amount paid by Tenant and the actual amount due under this <br /> subsection and provide Tenant with a copy of this reconciliation. Any difference <br /> between what has been paid and what is due shall be paid on May 1 of each lease year <br /> by Tenant as additional rent or credited on May 1 by County against rent. Tenant <br /> agrees that the valuation of the Premises shall be made by County's Tax Assessor <br /> according to the Schedule of Values adopted by County from time to time and that the <br /> determination of the true value in money of the Premises shall be made by the County's <br /> Tax Assessor. <br /> Tenant may, at its expense, in good faith, contest any such taxes, assessments <br /> and other similar charges or the valuation on which the same are based, and, in the <br /> event of any such contest may pay the taxes, assessments or other charges under <br /> protest during the period of such contest and any appeal therefrom. In the event it is <br /> determined by Tenant and Landlord or by the tribunal which ordinarily has jurisdiction <br /> that such tribunal does not have jurisdiction or is otherwise not permitted to act as a <br /> forum in consequence of the fact that Tenant's liability for the tax is contractual rather <br /> than imposed by law, then either party may submit a challenge to a tax, assessment or <br /> other similar charge or valuation to arbitration by an arbitration panel made up of MAI <br /> qualified/certified appraisers. County shall select one appraiser; Tenant shall select one <br /> appraiser; the appraiser selected by County and Tenant shall select a third appraiser <br /> and the decision of the arbitration panel shall be binding on both parties. To the extent <br /> that enforcement of the payment of any such taxes, assessments and other charges in <br /> the event of any contest are legally stayed during the period of such contest, such taxes, <br /> 2 <br />