Agenda 05-24-22; 5-a - Public Hearing Regarding Proposed Lease Agreement and Economic Development Incentive Agreement for Well Dot, Inc.

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7 LEASE PROVISIONS TERM SHEET TYPE OF LEASE: 0 New ❑ Renewal ❑ Expansion ❑ Option ❑ Change/Adj. BUSINESS NAME: WELL DOT, Inc. TENANT: WELL DOT, Inc. ADDRESS: 419 W. Franklin Street, Chapel Hill NC 27516 (0) (415)216-8434 (e-mail)jared.sokolsky@well.co PROPERTY ADDRESS: 501 W. Franklin Street 503 W. Franklin Street 108 S. Roberson Street Chapel Hill, NC 27517 LANDLORD: Orange County, a Political Subdivision of the State of North Carolina NOTICE ADDRESS: Orange County, Asset Management Services P.O. Box 8181 Hillsborough, NC 27278 RENT PAYMENTS : Orange County, Finance and Administrative Services P.O. Box 8181 Hillsborough, NC 27278 LEASE TERM: Ten (10)Years RENT PSF: $18.72 RENTABLE SQ. FTG: —21,612 LEASE SIGNED: , 2022 INSPECTION PERIOD: 120 days. COMMENCEMENT DATE: The date of Substantial Completion (as hereinafter defined). RENT COMMENCES: Commencement Date LEASE EXPIRES: 120 months from Commencement Date MONTHLY BASE RENT: $33,714.67 ANNUAL BASE RENT: $404,576.04 RENT ADJUSTMENTS: No adjustment for the first six (6) Lease Years (as hereinafter defined). An annual fixed increase of Two percent(2%)to the Base Rent starting with the seventh (7th) Lease Year, subject to the reset of Base Rent provided for in Section 4(b) below. PRORATION: Calculation of Rents is based on the annual rent amount divided by a 365-day year. OPTION TO RENEW: Provided the Tenant is not in default of any terms of this Lease beyond the expiration of any applicable notice and cure period,at the end of the initial ten-year Lease Term,this Lease may be extended for Two(2) terms of five(5)years each, commencing at the expiration of the initial term or prior extension term,as applicable,with Ninety (90)days prior written notice, and upon mutual consent. OPTION TO PURCHASE: Provided the Tenant is not in default of any terms of this Lease beyond the expiration of any applicable notice and cure period, the Tenant shall have the option to purchase the Property, which option may be exercised on any anniversary of the Commencement Date annually during the first 120-month term of the Lease. Should the option on the Property be exercised,the purchase price shall be based on appraisals using income methodology with each party selecting an independent appraiser and negotiating any differences in the appraisals to arrive at a purchase price, but shall also be less the value of the initial $250,000 deposit and rent paid up to the date of closing. Further, Landlord and Tenant are parties to that certain Performance Agreement dated as of the date hereof (the "Incentive Agreement"). The final purchase price for the Property shall be subject to any adjustments required by Section 2(D)of the Incentive Agreement. ALL RENTS ARE DUE ON THE 1st DAY OF EACH MONTH: Any payment not received by the 5th of the month will incur an automatic late fee of Five (5%) percent. DEPOSIT: Tenant shall pay a one-time deposit. The amount of the deposit shall be equal to the full amount expended by Landlord to up-fit the Orange County Skills Development Center up to and not to exceed two hundred fifty thousand dollars($250,000.00). Such deposit shall not be refundable and may only be utilized as provided in this paragraph, but shall be applied to the purchase price of the Property in the event that Tenant elects to exercise the option to purchase the Property set forth herein. Landlord Tenant Initials Initials