Common use of Job Creation Commitment, Security and Clawback Clause in Contracts

Job Creation Commitment, Security and Clawback. It is the Company’s intent to sustain and create the number of Jobs set forth in the table below under the column captioned “Projected Cumulative Full-Time Headcount” by the conclusion of each “Job Determination Period” as set forth below in the Job Creation Commitment and Schedule table below. If the Company does not achieve the “Minimum Job Target” set forth under the column captioned “Minimum Full-Time Headcount Target” in the table below at the conclusion of each of the specified Job Determination Period (and after expiration of the applicable Cure Period (as defined below)), then the Company shall be required to pay a Clawback Penalty (as defined below) to the City which will be applied in the percentage set forth in the table below: Job Creation Commitment and Schedule Year Projected Cumulative Full Time Headcount Minimum Full Time Headcount Annual Payroll Job Determination Period %- Clawback 2 10 additional; Total of 23 21 $1,702,000 1.01.2022 12.31.2022 100% 3 5 additional; Total of 28 25 $2,072,000 1.01.2023 12.31.2023 100% 4 5 additional; Total of 33 30 $ 2,442,000 1.01.2024 12.31.2024 100% 5 5 additional; Total of 38 34 $2,812,000 1.01.2025 12.31.2025 100% 6 15 additional; Total of 53 49 $3,552,000 1.01.2026 12.31.2026 100% 7 Maintain 53 49 $4,292,000 1.01.2027 12.31.2027 75% 8 Maintain 53 49 $5,402,000 1.01.2028 12.31.2028 75% 9 Maintain 53 49 $6,512,000 1.01.2029 12.31.2029 50% 10 Maintain 53 49 $7,992,000 1.01.2030 12.31.2030 50% Total Total additional hires 40 above starting headcount of 13 Note: As described in the table of Section 9, the Company may access up to $2,500,000 in additional LEDA toward the creation of up to an additional 76 new hires for a total of up to 116 new full time employees. If the company access any of the final $2,500,000 available years 7-10 will be amended to reflect the additional job creation commitment. For example: Company creates 10 over 52 total full-time and accesses an additional tranche, years 7-10 will read maintain 63 – minimum of 58. a. The “Clawback Penalty” is a penalty that the Company will be required to pay to the City upon the Company’s failure to meet the Minimum Full Time Headcount at the conclusion of the applicable Job Determination Period, if such Minimum Full Time Headcount is not otherwise reached by the Company during the Cure Period. The Clawback Penalty shall be equal to (i) the product of the Percentage Hiring Shortfall (as defined herein), multiplied by the total amount of City and State LEDA Funds disbursed to the Company as of that time and multiplied by the % Clawback applicable to such Job Determination Date, less the total of any Clawback Penalty amounts paid by the Company. For purposes of this subsection, the “Percentage Hiring Shortfall” shall be the quotient of (i) the Minimum Full Time Headcount for the applicable Job Determination Period, minus the actual number of jobs the Company maintains at that time, divided by