1996 S Lease with Builders' Supply & Lumber Company Inc

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r � 4 million in equipment and improvements to the Premises, $3 million in inventory that will be located at the Premises and $3 . 5 million in accounts receivable; 4 . local (1%) sales tax revenues of approximately $220, 000 are projected for the first year following occupancy by Tenant in the Premises . Sales tax revenues are projected to increase to $340, 000 by the conclusion of the second year of occupancy and $400, 000 at the conclusion of the third year of occupancy; and WHEREAS, Landlord, by resolution on November 19 , 1996, made the determinations that : (i) the value of the lease payments to be made to Landlord together with the value of the real property, equipment and sales taxes to be paid to Landlord as the result of the proposed long term lease, will be equal to or greater than the fair market value of the leasehold interest conveyed, as determined by a market survey of similar facilities in the area, and (ii) Landlord determined that the leasing of this property to Tenant will stimulate the local economy, promote business, and result in the creation of a substantial number of jobs in Orange County at or above the "median average" wage in Orange County. A copy of the November 19, 1996 resolution is attached hereto as Exhibit C and made a part hereof; and WHEREAS, the total lease payments to be paid to Landlord as the result of the proposed long term lease between it and Tenant together with the covenants of Tenant contained herein are adequate consideration to Landlord for the proposed long term lease of the Premises . W I T N E S S E T H: In consideration of the rents to be paid to Landlord by Tenant, as hereinafter provided, and of the other ccvenants and agreements upon the part of Landlord and Tenant to be kept and performed, Landlord hereby demises and leases to Tenant, and Tenant leases and takes from Landlord the Premises as defined herein. 1 . The Premises means the real estate and other rights described in Exhibit A hereto and elsewhere in this Lease and any lease supplementing this Lease, together with all a&ditions thereto and substitutions therefore less such real estate, interest in real estate and other rights as may be released pursuant to Paragraph 8 of this Lease, or taken by the exercise of the power of eminent domain as provided in Paragraph 7 .b. of this Lease. 2 . Term of-Lease; Right of First Refusal . a. The Premises is presently owned by the Industrial Development Corporation in the County of Orange, North Carolina, a North Carolina non-profit corporation, whose principal place of business is located in Orange County, North Carolina, and is 2