Project/Milestones Taxpayer is a designer, developer and manufacturer of advanced military flight, armament, and space systems. Taxpayer has certified in its application that absent award of the California Competes Tax Credit, its project may occur in another state; and, it may terminate all or a portion of its employees in California or relocate all or a portion of its employees in California to another state. In consideration for the Credit, Xxxxxxxx agrees to hire full-time employees and invest in manufacturing, laboratory, and computer equipment and tenant improvements as part of its expansion in Northridge, El Segundo, and San Diego, California (collectively, the “Project”). Further, Taxpayer agrees to satisfy the milestones as described in Exhibit A (“Milestones”). In addition, Taxpayer must maintain the three (3) employee based Milestones (“Total California Full-Time Employees,” “Minimum Annual Wage of California Full-Time Employees Hired,” and “Cumulative Average Annual Wage of California Full-Time Employees Hired”) for a minimum of three (3) taxable years thereafter. In the event Taxpayer employs more than the number of full-time employees, determined on an annual full-time equivalent basis, than required in Exhibit A, for purposes of satisfying the “Minimum Annual Wage of California Full-time Employees Hired” and the “Cumulative Average Annual Wage of California Full-time Employees Hired,” Taxpayer may use the wages of any of the full-time employees hired within the required time period. For purposes of calculating the “Minimum Annual Wage of California Full-time Employees Hired” and the “Cumulative Average Annual Wage of California Full-time Employees Hired,” the wage of any full-time employee that is not employed by Taxpayer for the entire taxable year shall be annualized. In addition, the wage of any full-time employee hired to fill a vacated position in which a full-time employee was employed during Taxpayer’s Base Year shall be disregarded. 0000 X Xxxxxx, 00xx XXXXX, XXXXXXXXXX, XXXXXXXXXX 00000
