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• (b) Thereafter, an amount equal to one hundred percent (100%) of the ad valorem taxes which would be payable if the property comprising the Leased Premises were subject to ad valorem taxes. 2. Assessed Valuation. Representatives of the Company will meet annually with the Assessor of the County and determine the assessed valuation of the properties comprising the Leased Premises. The determination shall be made by mutual agreement if possible, and if not shall be made by the Assessor as though the Leased Premises were privately owned. The amount to be paid each year shall be determined by applying the millage that would be applicable to the Leased Premises for that year if the Leased Premises were privately owned. The Company shall be entitled to any refund occasioned by overpayment or a reduction in millage which requires a refund by the taxing authorities. 3. Distribution. Each payment made pursuant to Section 1 hereof shall be distributed to the political subdivisions which would have received ad valorem tax payments on the Leased Premises had the Leased Premises not been exempt from ad valorem taxes in accordance with applicable law. 4. Payments Limited. The payments to be made by the Company under Section 1 hereof are intended to be in lieu of all ad valorem taxes that would have to be paid on the Leased Premises to the State of Arkansas, the City, the County, Batesville School District No. 1 of Independence • County,Arkansas(the"District"),and/or other present and future political subdivisions of the State of Arkansas if the Leased Premises were not exempt from ad valorem taxes under the provisions of Article 16, Section 5 of the Constitution of the State of Arkansas as interpreted by the Supreme Court of the State of Arkansas in Wayland v. Snapp, 232 Ark. 57, 334 S.W.2d 633 (1960), and Pulaski County v. Jacuzzi Bros. Div., 332 Ark. 91, 964 S.W.2d 788 (1998). Therefore, such payments shall not as to any year be in an amount greater than would be payable for such year in ad valorem taxes, in the aggregate, if the Leased Premises were not exempt from ad valorem taxes. 5. Change of Law or Application. Ifby reason of a change in the Constitution,a change by the Supreme Court of the State of Arkansas in its interpretation of the Constitution,or otherwise ad valorem taxes are no longer imposed on property of the type comprising the Leased Premises,no payments shall be due by the Company hereunder from and after the effective date of such change. Furthermore,ifby reason of a change in the Constitution,a change by the Supreme Court ofthe State of Arkansas in its interpretation of the Constitution,or otherwise the Company is required to pay any real or personal property ad valorem tax which the payments specified herein are intended to be in lieu of,the Company may deduct the aggregate of any such payments made by it from the amount herein agreed to be paid in lieu of taxes and need only pay the difference, if any, to the City. It is understood that such deduction shall include payments made by the Company for sales taxes, use taxes, or any other taxes, excises or imposts of any kind or character which have been imposed by the State of Arkansas, the City, the District, and/or any other taxing authority in lieu of and as a substitute for ad valorem taxes. • 2