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~'' 7 -~ ~ ~ 1 ~~tsU <br />STATE OF NORTH CAROLINA <br />ORANGE COUNTY <br />PERFORMANCE AGREEMENT BETWEEN ORANGE COUNTY, NC AND AKG NORTH <br />AMERICA, INCORPORATED <br />This Agreement made and entered into this the 7`" day of June, 201 ] by and between Orange County, a <br />body politic existing under the laws of the State of North Carolina (appearing hereinafter as "County") <br />and AKG North America, Incorporated, located in Mebane, North Carolina, a producer of heat transfer <br />products (appearing hereinafter as "Company'). <br />AKG North America, Inc. operates its business in part directly (central management functions) and in <br />part through three subsidiaries, i.e. AKG North American Operations, Inc. (manufacturing), AKG of <br />America, Inc. (OEM sales), and AKG Thermal Systems, Inc. (off-the-shelf sales). All are duly <br />authorized to conduct business in North Carolina. It is understood that the levels of performance <br />required by this Agreement are to be met by this group as a whole at its facility in Orange County <br />(Mebane). Accordingly, the term "Company' as used in this Agreement refers to the entire group at <br />such facility. <br />WITNESSETH <br />THAT WHEREAS, the County has offered to the Company an inducement package as hereinafter set <br />forth; and <br />WHEREAS, the State of North Carolina and the Town of Mebane, North Carolina have offered separate <br />inducement packages to the Company; and <br />WHEREAS, but for the offer of an inducement package the Company would not be expanding its <br />facility within Orange County; and <br />WHEREAS, the Company has agreed to meet and continue meeting the minimum investment and <br />employment requirements as hereinafter set forth; <br />NOW, THEREFORE, the parties hereto in consideration of these mutual covenants and agreements <br />passing from each to the other do hereby agree as follows: <br />1. INDUSTRIAL INVESTMENT AND EMPLOYMENT AGREEMENT <br />A. INVESTMENT: The Company shall directly invest a minimum three million dollars <br />($3,000,000.00), in accordance with the investment plan attached as Exhibit B, in addition to 2011 <br />assessments in real and taxable business personal property as described in Exhibit C. The Company <br />shall maintain the minimum taxable investment for a period of at least five years through and including <br />2016. If total increase of taxable investment shall fall below the minimum investment levels, due to <br />failure to meet the investment goals set forth in Exhibit B or removal of equipment, as assessed by the <br />Orange County Tax Assessor, the amount of the following annual installment will be reduced by a pro- <br />rata percentage of the shortfall. The baseline for measuring whether the investment goals have been met <br />(i.e. the 2011 tax assessments) shall be adjusted (1) upward, if there is an increase in the assessment of <br />the Company's real property and (2) downward, to reflect the natural decline in the value of the <br />Page 1 of 8 . <br />~~ <br />