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13 <br /> E. STATUTORY COMPLIANCE: The Company understands that the County's participation is <br /> contingent upon authority found in North Carolina General Statute 158-7.1 and other relevant <br /> North Carolina General Statutes and that should such statutory authority be withdrawn by the <br /> North Carolina General Assembly County may terminate this Agreement without penalty to <br /> County and without further compliance with this Agreement. <br /> 3. INDUCEMENT PACKAGE <br /> A. COUNTY INDUCEMENT GRANT: Subject to the limitations set out herein the County, <br /> upon execution of this Agreement, shall provide to the Company an Inducement Grant to offset <br /> Facility development, expansion, and acquisition costs in an amount estimated at Eighty Six <br /> Thousand Two Hundred Sixty One Dollars ($86,261.00)payable in five installments . The <br /> estimated annual amount of each year's grant payment is shown in Exhibit A. The first <br /> installment shall occur on January 31,2021 upon receipt of proof, as described in Section 5 of <br /> this Agreement,that the minimum employment and investment numbers referenced in Section 2 <br /> of this Agreement have been met and proof that all outstanding local property taxes on the real <br /> and business personal property owned by the Company and located within Orange County, for <br /> which a bill for such taxes has been issued to the Company,have been paid. Subsequent annual <br /> installments will occur during the month of January for the term of this Agreement with the final <br /> installment occurring in January 2025. No installment shall be required to be paid until such <br /> time as County receives proof of the payment of all outstanding property taxes and verification <br /> of employment and investment levels has been submitted to the County. Subject to Section 3C <br /> the final Inducement Grant amount shall be determined based on the Company's Total Taxable <br /> Investment at the time of the final inducement installment and according to the formula in 3B. <br /> B. TOTAL COUNTY COMMITMENT: The maximum amount of the Inducement Grant <br /> payment is based on the Total Taxable Investment by Company in an amount of Four Million <br /> One Hundred Fifty Thousand Dollars ($4,150,000.00). The Inducement Grant payments shall <br /> be calculated based on the Company's Minimum Taxable Investment for the time period <br /> preceding the current Inducement Grant payment. County shall adjust the Inducement Grant <br /> payment amount according to the following formula: Amount of investment divided by 100 <br /> multiplied by the current ad valorem tax rate(currently$0.8679 per$100 of valuation) <br /> multiplied by 0.75 (percentage of inducement)multiplied by 5 (number of years). Utilizing this <br /> formula, and an estimate of depreciation as outlined in Exhibit A, a taxable investment currently <br /> estimated at Four Million One Hundred Fifty Thousand Dollars ($4,150,000.00)would result in <br /> an Inducement Grant in the amount of Eighty Six Thousand Two Hundred Sixty One Dollars <br /> ($86,261.00), payable in 5 installments. Subject to 3C below, in the event the amount of <br /> taxable investment increases or decreases, the amount of inducement shall increase or decrease <br /> based on the formula specified herein,however the total amount of inducement shall not exceed <br /> Eight Six Thousand Two Hundred Sixty One Dollars ($86,261.00). Further, this example <br /> assumes a static Total Taxable Investment of Four Million One Hundred Fifty Thousand Dollars <br /> ($4,150,000.00)throughout the 5 year term. The formula specified herein shall be applied to the <br /> taxable investment annually during the term to determine the actual amount of the 5 inducement <br /> installments. <br /> Page 5 of 14 <br />