Provalus to enter Lease Agreement With Town Of Edenton

The Town intends to ground lease the Project to the Main Street Affiliate for a term of ninety-nine years, lease the Project back from the Main Street Affiliate and then sublease. The proposed consideration to be paid to the Town under the Provalus Sublease is expected to be: (i) for the first five years thereof, $1.00 per square foot of the premises to be leased (i.e., $16,077 per year), (ii) for the second five years thereof, $2.00 per square foot of the premises to be leased (i.e., $32,154 per year) and (iii) for any year after the tenth year thereof, $10.00 per square foot of the premises to be leased, (i.e., $160,770 per year (in the first such year)) plus annual increases based upon increases, if any, in the consumer price index.