2013-546 Lease between Orange County and Piedmont Food and Agriculture Processing Center Corporation dated 3-18-2013

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RB5513 525 2117 governmental authority, except as hereinafter provided. In addition, Tenant acknowledges that the Leased Premises is a smoke free building and does not permit tobacco use inside of the building. 3. Term and Rental. (a) This lease shall commence on January 2, 2013, and shall end on January 1, 2018, unless sooner terminated as herein provided. (b) County and Tenant acknowledge the fair rental value of the Leased Premises notwithstanding the rent listed in Section 3(c)(i) is estimated at $2,166.67 per month ($26,000 per annum). The fair rental value shall be subject to a two percent (2%) annual percentage increase. It is acknowledged by Tenant this annual increase for the initial term of this lease is below the average market rate annual increase of five percent (5%) and any renewal or extension of this lease will reflect the fair rental value at the time of the renewal or extension. In any such renewal or extension the fair rental value, as it is determined at the time of the renewal or extension, shall be subject to a five percent (5%) annual percentage increase. (c) The Tenant agrees to pay the County without demand at its office, or at such other place or places as County may from time to time designate in writing, the following amounts as rent for the Leased Premises: i) sum of one dollar($1) per month for the first two (2) years of the term; ii) a sum equal to thirty-three percent (33%) of the fair rental value for the third year of the term commencing on January 2, 2015; iii) a sum equal to sixty-six percent (66%) of the fair rental value including the annual percentage increase for the fourth year of the term commencing on January 2, 2016; iv) the fair rental value including the annual percentage increase for the fifth year of the term commencing on January 2, 2017. (d) Rent shall be due and payable on or before the fifth day of each month. Tenant acknowledges this rental rate is discounted for a portion of the term in an effort to assist Tenant in providing a public benefit that being regional food and agricultural processing services and that any renewal of this Lease shall be subject to an increased rental rate as determined by County. (e) The extension of time for the payment of any installment of rent, or the acceptance by the County of any money other than of the kind herein specified, shall not be a waiver of the right of the County to insist on having all other payments of rent made in the manner and at the time herein specified. (f) If any installment of rent is not received by the fifth (5th) day of any month it is due, Tenant shall pay as additional rent a late payment fee of Fifty Dollars ($50.00). This additional rent shall be due immediately without demand therefor and shall be added to and paid as a part of the installment payment of rent with respect to which it is incurred. (g) This Lease may be renewed with the consent of the County for up to two additional five-year terms upon written notice to the County sixty (60) days prior to the expiration of the term. 4. Holdover. If the Tenant shall remain in possession of the Leased Premises after the expiration of the original or renewal period as set out above, such possession shall be as a month-to-month tenant. During such month-to-month tenancy, rent shall be the rent in effect during the last month of the term immediately preceding plus an additional 50%. 5. lnsurance and Taxes. 2