2019-754 Economic Dev - Medline industries performance agreement

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M. "Tax"or"Taxes." .Ad valorem property tax levied on real and personal property located in the County pursuant to Article 25, Chapter 105 of the North Carolina General Statutes or any successor statute relating to ad valorem property tax the County levies on property. N, "Term"or"Full Term." The duration of this Agreement meaning 0(;,Fo��r Li+2019 through and including January 31,2026. 2. INDUSTRIAL INVESTMENT AND EMPLOYMENT AGREEMENT A. INVESTMENT 1. The Company anticipates it shall directly invest a Minimum Taxable Investment of sixty five million three hundred thousand dollars ($65,300,000.00), in accordance with the investment plan attached as Exhibit A,on or before January 31,2024. If the Company does not make 80%of the Minimum Taxable Investment on or before January 31, 2021 (and as may be extended below),the amount of the Grants will be adjusted as provided in Subsection 2.A.3. 2. The Company shall maintain the Minimum Taxable Investment for a period of at least five years through and including January 31,2026. i 3. If total increase of taxable investment falls below the Minimum Taxable Investment levels,due to failure to meet the investment goals set forth in Exhibit A or removal of equipment,as assessed by the Orange County Tax Assessor, the amount of the following annual installment will be reduced by a pro-rata percentage of the shortfall. The baseline for measuring whether the investment goals have been met will begin with the date of performance agreement execution shall be adjusted (1)upward, if there is an increase in the assessment of the Company's real property and (2)downward,to reflect the natural decline in the value of the Company's personal property(existing in 2020 j and acquired thereafter in the course of the new investment)as measured by the 1 depreciation of such property in accordance with generally accepted accounting principles. 4. Should Company dispute the valuation of its property by the Orange County Tax Assessor, Company may register an informal complaint with the Tax Assessor j requesting a re-evaluation of Company's property and resulting tax and the Tax Assessor shall work with Company to conduct such re-evaluation. Should Company dispute the results of any such re-evaluation the Company may appeal the resulting valuation under the same process and subject to the same requirements as any other tax appeal in Orange County. & EMPLOYMENT 1. On or before January 31, 2026, at least 250 persons will be employed in full-time positions at the Mebane facility("Jobs Minimum"). The number of full-time positions shall be evidenced by one or more Quarterly Tax and Wage Reports(Form NCUI 101) filed with the North Carolina Department of Commerce's"NC Works"employment career center. If 80%of the Jobs Minimum is not achieved on or before January 31, 2026 (oar as extended as provided below),the amount of the Grants will be adjusted as provided in Section 6. Page 3 of 12