2011-250 ED - AKG North America, Incorporated - Performance Agreement for Incentive for AKG Expansion

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Company's personal property (existing in 2011 and acquired thereafter in the course of the new investment) as measured by the depreciation of such property in accordance with generally accepted accounting principles. B. EMPLOYMENT: At the time of the commencement of this Agreement Company and County agree Company has 311 full time employees at its Mebane facility. At the expiration of this Agreement, the Company, and its subsidiaries, shall employ, at its Mebane facility in Orange County, at least the equivalent of 40l full time employees in accordance with "Exhibit A". Ninety (90) new full time equivalent employees shall be hired at the Mebane facility pursuant to the terms of this Agreement Employees counted toward this total shall include both new and existing employees of the Company, provided such employees are employed in Orange County on a full time basis. Employees of the Company will be eligible to participate in Company sponsored health insurance and retirement programs. For purposes of this section "401 full time equivalent employees" shall be defined as 401 actively employed individuals and shall not include vacant positions for which the Company is actively or otherwise recruiting. It is understood that vacancies occur and that when such occur the Company will immediately, or as soon as is reasonably possible thereafter, fill said vacancies. The mean wage of the 90 new full time equivalent employees shall be, as of the last day of this Agreement, at the annual rate of forty-four thousand one hundred seventy-five dollars ($44,175.00). C. GRANT PARTICIPATION: Where applicable, the Company agrees to partner, through the commitment to create new jobs, with Orange County and other applicable agencies to apply for grants that will improve and/or add water, sewer, road or other necessary infrastructure in order to facilitate the successful completion of this project. The Company agrees to meet with program representatives, and to participate in the grant request process as necessary to secure the required funding. D. GUARANTEED MINIMUM LEVEL OF PERFORMANCE: The Company guarantees that its minimum level of performance pursuant to this Agreement shall be as set out in this Section 1. Company agrees that failure to meet the minimum level of new employment as reflected in Section 1 B shall entitle the County to reductions in inducement installments paid to the Company in an amount of two hundred fifty dollars ($250.00) per employee not hired as reflected in Exhibit A. Company further agrees that failure to meet the minimum level of direct investment as reflected in Section 1 A shall entitle County to pro rata reductions in inducement installments paid to the Company. E. STATUTORY COMPLIANCE: The Company understands that the County's participation is contingent upon compliance with North Carolina General Statute 158-7.1 and other relevant North Carolina General Statutes. 2. INDUCEMENT PACKAGE A. COUNTY INDUCEMENT GRANT: The County, upon execution of this Agreement, shall provide to the Company an inducement to offset facility development, expansion, and acquisition costs in an amount not to exceed One Hundred Thousand dollars ($100,000.00)This inducement shall be payable in equal installments over a five year period. The first installment shall occur during January of the 2012 calendar year upon receipt of proof, as described in Section 4 of this Agreement, that the minimum employment and investment numbers referenced in Section 1 of this Agreement have been met and that all local property taxes on the real and business personal property owned by the Company and located Page 2 of 8 l~°