Common use of Community Contributions Clause in Contracts

Community Contributions. The purpose of the Community Contribution is (1) to enhance the ability of the City and the N/NE Portland community to provide and support qualified Inner NE Portland employees to the Company and/or (2) to enhance the ability of N/NE small businesses to be competitive suppliers to the Company and other firms. The factors that determine whether Company will make a monetary Community Contribution and the method of calculating such a Contribution are set forth as follows: 3.10.1. If Company’s “Net Tax Effect” becomes greater than $10,000 per Hiring Credit earned by Company, a Community Contribution will be due and payable to PDC. Company shall make the payment within 90 days of its receipt of an invoice unless otherwise agreed by the parties. Late Contribution payments will be subject to a 1% per month penalty. 3.10.2. PDC and Company currently estimate that Company will owe a Community Contribution in the total amount of $0 as detailed in the attached Exhibit C, and that the Contribution will become due and payable during the tax abatement period according to the payment schedule in Exhibit C. 3.10.3. At the end of the tax abatement period, PDC’s Zone Manager will determine the total number of Hiring Credits earned by the Company during the period from Pre-Certification to the end of the tax abatement period; and the final Net Tax Effect of the project. The final number of Hiring Credits will include regular full-time hiring in the last six months of the last tax abatement year for employees that complete company probation periods and are still employed as of the fourth month of the first tax year following the tax abatement period. The discount rate for computing the final Net Tax Effect calculation will be 6.1%. (The discount rate is used to adjust the net local tax impact to 2006 dollars).