2011-250 ED - AKG North America, Inc. - One NC Grant - Performance Agreement

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and/or machinery and equipment as part of the Project, which will amount to at least Two Million Nine Hundred Seventy Thousand Dollars ($2,970,000) by the Grant End Date (the "Required Investment')(90%of the Target Investment). 1.7 The proceeds of the Grant may be used only to offset statutorily qualifying expenses as set out in N.C. Gen. Stat. § 143B-437.71(b) ("Statutorily Qualifying Expenses"). Those expenses are installation or purchase of equipment; structural repairs, improvements, or renovations to existing buildings to be used for expansion; construction of or improvements to new or existing water, sewer, gas or electric utility distribution lines or equipment for existing buildings or for new or proposed buildings to be used for manufacturing and industrial operations; or such other expenses as specifically provided for by an act of the General Assembly. 1.8 Release of any Grant funds under this CPA is contingent on the Company providing verification that the Project has received all of its required environmental permits. 2.0 DISBURSEMENT OF GRANT 2.1 Proceeds of the Grant up to a total amount of One Hundred Thousand Dollars ($100,000) will be disbursed by DOC to the Local Government in four installments based on creation and maintenance of New Jobs and satisfaction of other performance criteria set out in Section 1.0 above("Performance Criteria"). The number of New Jobs to be counted shall be determined as provided in paragraph 6.1 hereof. At the time of any requested disbursement, the Company and, as applicable, the Related Member Parties, must certify its performance by submitting a duly executed disbursement request and certification in the form of Exhibit A hereto (the "Company Disbursement Request'), and the Local Government must submit a duly executed disbursement request and certification in the form of Exhibit A to the LGGA (the "Local Government Disbursement Request'). Disbursement will occur on the following schedule and will be subject to any adjustments required by this CPA: a. The first twenty-five percent (25%) of the Grant will be disbursed to the Local Government upon proof that the Company and Related Member Parties, if applicable have together(i) maintained 100% of the Retained Jobs; (ii)created and retained not less than twenty-five percent(25%) of the Target New Jobs (i.e., 19 New Jobs), (ii) invested the amount to be disbursed in Statutorily Qualifying Expenses, and (iii) obtained all required environmental permits. , b. The second twenty-five percent (25%) of the Grant will be disbursed to the Local Government upon proof that the Company and Related Member Parties, if applicable have together(i)maintained 100% of the Retained Jobs; (ii)created and retained not less than fifty percent(50%)of the Target New Jobs(i.e., 38 New Jobs), and(ii)invested the amount to be disbursed in Statutorily Qualifying Expenses. c. The third twenty-five percent (25%) of the Grant will be disbursed to the Local Government upon proof that the Company and Related Member Parties, if applicable, have together(i) maintained 100%of the Retained Jobs; (ii)created and retained not less than seventy-five percent (75%) of the Target New Jobs (i.e., 57 New Jobs), and (ii) invested the amount to be disbursed in Statutorily Qualifying Expenses. One NC Company Performance Agreement AKG North America, Inc. Orange County -3-