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Home My WebLink About029518 RES - 06/12/2012Page 1 of 3 Resolution Approving a business incentive agreement for the creation and retention of jobs between the Corpus Christi Business and Job Development Corporation ("Type A Corporation") and Little Boeing Blue, Inc. ("Motorglobe"), which provides a grant of up to $125,000, for building improvements and new equipment for a new headquarters in Corpus Christi, and the creation and retention of at least 50 full time jobs with an annual average salary of at least $50,000 over a five year period, and authorizing the City Manager or designee to execute a business incentive project support agreement with the Type A Corporation regarding implementation and administration of the Motorglobe Business Incentive Agreement for the creation and retention of jobs WHEREAS, the Type A Corporation has budgeted funds to assist businesses create or retain jobs in the City of Corpus Christi, Texas ("City"). WHEREAS, the Type A Corporation has requested proposals from businesses that will create or retain jobs within the City, and determined that the proposal from Motorglobe for equipping its facilities within the City, in which Motorglobe will invest in furniture, fixtures, and equipment and will retain at least 50 full-time jobs with an average annual salary of at least $50,000 over a five year period, will best satisfy this goal; WHEREAS,. City Council deems that it is in the best interest of the City and citizens to approve the business incentive agreement for the creation and retention of jobs between the Type A Corporation and Motorglobe; WHEREAS, there is a need for a business incentive project support agreement between the City and the Type A Corporation for the implementation and administration of the business incentive agreement for the creation and retention of jobs between the Type A Corporation and Motorglobe. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the business incentive •agreement for the creation and retention of jobs between the Type A Corporation and Motorglobe that provides for facilities and equipping its facilities within the City of Corpus Christi, which is attached to this resolution as Exhibit A, is approved. SECTION 2. That the City Manager, or designee, is authorized to execute a project support agreement between the City and Type A Corporation for the implementation and administration of the business incentive agreement with Motorglobe, which is attached to this resolution as Exhibit B. This re lution takes effect upon City Council approval on this the 1.21Ldayof , 2012. b 1 b4d3d4-5a92-4e66-a52f-14d290790107.docx 0295.1.8 INDEXED ATTEST: Armando Chapa City Secretary APPROVED: /3 da of Page 2 of 3 THE CITY OF CORPUS CHRISTI Joe Ada e Mayor harlochem Assistant City Attorney For City Attorney bib4d3d4-5a92-4e66-a52f-14d290790107.docx , 2012. Corpus Christi, Texas 1241' of , 2012 The above resolution was passed by the following vote: Joe Adame Chris N. Adler Larry R. Elizondo, Sr. Kelley Allen Priscilla Leal David Loeb John E. Marez Nelda Martinez Mark Scott q‘-14 rugt- b 1 b4d 3d4-5a92-4e66-a52f-14d290790107.docx eat cut 029518 Page 3 of 3 BUSINESS INCITE. BUS IESS AND JoB"D LOP. te�greirnent for Capri Invsttens end the reetio�n end= `green ent 9is enterer into :between th orpus Christi Business %g o ra . " or or ton"$ n .i Qei slue Inc, `dba lobe}, a Tea r ro it�cx�r c r t# , eTexas a isiatarre in lection 4A ofI�rklcl Revi ed Ctv l Statutes l vatapr ent Co ratrari Act o 1 Title 1"j'' ex.t eat Go remrnent Code, a ipow red :ab II y't i ad t n optinrial local -safe rend ;'lax s z. ecvr omip he Ith apd pro twenty of their ci I-IEt"�S on i tt verdber 5, 002', esidents of the -S000:Proposition 2, flew anis Ex ianded,Susl ess adoption of salsa and lyse ted for the promotion ani expa ed `t us�ness er terpnses at tF a rate,o one, riterprisea, whtcl� e' eve1t pn ent ofnew .°f,one ,percent:.to PSS; the'118th cant setes to : autitciri�ed by pass rently eructed by the!C ty Council end flIod vlti , veApril 1, 2003, to be administered by.; eveiopment,Oorporation Board, HgR� 18 the the prrpcise of of Corpus Gtris WHEREAS, th amended Ffropositiorr, tate Comptroller of exas,, stI ,suslrneeS and 4.0. ;orprs Chril �usress and Foix devetop0 1 1e01 i Dor or#jn asts r oouratiirrg and -assisting, rttl les In th creation, of u s fen h cl Texas; e orpprtr.,"fir elrnes ani Criteria for C 'Cmina Inco noantive i alrcies 20( t'"anQeptembet'tl, Ming Business p rated into; the City of 9.2011 on November 17;: oundil epproved the Co siness slncentves on Septet an 'November S,.20.10, amended th rig :'Bueirese Incentives; ounri aptirvved the.Gorporatin's a r t ranting Bus nesa-;Incent ves on Npverr ber 19 t�rperatior'e Guidelines torgioer scJGris Ic Ara#n?r tvrl , ta1utesY requires tie City GOUnoiJ to approveafl programs,44. a r tlitr r s c ftbe co ration, Wiwi ll SAS, Mota rgl+ a will Idf ate helr::head carters herein Gorpt s Cbnstr B`pard has deetermii 1 i it s,.inrt ................... of th acitizens of 'Corp s3Chrf s iY, Texas that usrrtess deve opment funds be a to Motorg:Iobe through #his' ontract wltti C�lotorglobe, to be used by ll lvtorglobe to partially afFset tine casts of ouiidl t oroverde tt purchase of 00. oers, ft co stat`pns, fumlture arid. fixtures and'which, witi result an creation of p tb,' new ft t. erne pet`rr nnual' Sida10111.!640°,- ori tit jOOob. s tide.. pity of orpus i ist� with n estlt eted vera e,salary of' in cposidera#iort of tyre averAent :pro nditrorys etated iri this Ag eament Corporation and Viotorrlobe agree as follows: Efective Date.. The effective date of this Agreernent date that either pa.' xecutes this; ggreement.: tteotive: ate' 'j' is .the<latest 2Tents Ire term t f this A regime r is far frve:y ar beglr�nin ;an �lanuary 1, 2 Perfor nance.Requirements ,and ',Grants. �a Motordlole's performance requirehfterts: (1) shall cute e salary of $50;000 irk4 r►ew jobs vurih a3 enrival average GorparatiOff0 "GrattS 'The or Ora foil t4rril grant 1 01 urrderthe foci rri(g .rttrItrans: } PreverynewjbEceat emoted edthe _._-_, .o , $ti„tog' (2) (iotargbG'd iooes nbt create 0I.)-0\0406010 anygrant:to Metorgibbe for that calendar�year�, 0 up to $125,o tilt CYeatioi ualltioatio orporatiorr will not av ard' In .0.4.0.;#0.6( as a created job,u dertiiis,l giaerr?errtx tt a fob ma st ply rages as regraired r cion°501 'i>62, T is Lpcal. (3over rner►t ode., fu e l e ▪ obon q0„-(010:1) the Devoloprrlent Crportlart pct of 1J7t33s aendedwhrc:s ie rriedran wage of the,ocbur atiort in the ° orpu Chr1 fi• a•sdetermined by exas Wo orce;;:jC me r scan's Teas I stn rofites repent. uil beam peril% nt obis defined rriihe Tyre totgIoib�.Busa s0.i e rr�vs,r ENT ace: oft eIine$. llo#Orgtvb, a #�rtimdocrret#R v the nrps#ion tiff the; Inimuri, r carraber of obsj crated result cif funder g pr urd�ed'lay title greement is. maintained throughout the term b ± the Business.. d `Motor iobe,agr000:10,!:00901.0.:: ertrir ate ►y authotiZe representatt ie ofeach business assisted unthrEthts Agreement cert yrr g the number of full -tine permanent ern.playees employed by the bus • rtess e ,Mvtorglehe shall ensure that the Gcarporaf on is allowed reasonable access to personnel recordsofathe businesses'assisted unties this Agreer Y ooa� visiorl:r a. Motorglabe agrees't a` use Its ties# efforts to give'preference arid pnaritytc: localmanufactut'ers, s 4pplrors, contractors, and Tabor:', except where not reasonably possible to`rda so without added expense; substantialtncQnvenieroe tar sacrifice irroperating efficiency, h, '.For the, purposes of this se'ctior , the term `focal" as used to describe manufacturers, suppliers, cdnitractors, alid labor err lucfes firms„ he stresses,-.anu persons who reside in or maintain an office within a "ile,,radlbsof Nueces 01,1170 1; erranties� Il/lotvrgt obe warrants and:;represents to Corpc ratf h the caliowiog;' a` MutorglQbe lr:a corporation duly organized, validly exist ng,and in gar�d. siandir g under the Iav s of the Mate rafTs xas; has all'corporate power and: out r arrt r to ca an rt hu mess as ,presently eandu ted in ; c rpus h istl, Texas. b N(otorglabe has the authority tv,:enter lata aril parforrrt, Arid v�ill per fomrt7, ilia terms. meritilb.the bestof its; abillt c Ntotvrglvbe hey ttrnoly filed anal. mill #rrnely file ati local, State, and Federal tax reports and returns required by to cs in lie filed, and alt Texas, assessments, fees; and other governmental charges, including appticabla ad valorem taxes, have: been trmely paid ,and ill,.be timely paid ,;:during the t r`m of'thrssAgheem eat.. d, Motorzrlobehas received a copy. of the TexaaDevelopment Co post rb#ltle G'l 'i"itle , exas .Focal �vuernh erg . c de and acknowledg that,the fund$ granted rn this Agreement must be utrlized ,solely for purposes authorizer#, unoer'State law :and bythe terms af°thls Agreernent. su he parties executing this Agreement ,on behalf of Motorglobe: are duly orized to ekeoute`this Agreement on behalotorglobe 'ag'e 3 of 10 Aotprii ab.3 Nc r IV AGRFf_M NT piiarrie with laves. sall observa;and obey all applicable laws, o rnances regulatio-nsi and rules ryf the Federal, State= a unty, and clay government $. I�lon,r)iscrinitnation fatorc lube. versants sr d` egress tl rsfi Matsu vbe v ill nc t discriminate nor permit; drscrnrr�rnation against rry persue gar groin of p rsc ns, itfr. regi fie etrapoeicyr ,�rrerrt and fns priv€sron cif seances at,rrr, r itafil�re Faplity, un the grounds of'rareligion, riattonal arigrn,, marital status, sex,, age, disebilityz or< in.:any.. rrrenr er prohibltect by then larlwts of the Uri fed tares n the Mete ref°Texxa , g , force* a�e�r 1# the •$or oratlan or Matorc lvue ire �r vented, wholly or err party:. frar> f llfihling its:eollgo:trans under tbis greer fi.by reason of arty a . of od . unevatdable accident,, sots, o...:, nyles, i s,1dods, gov'eri- mental "restraint, ar regulation, .gather :;caus of force EmaJeur'e or by►, reason of i urnstances beyond' its control, then the abligsbons of the Corppr lion or Motorglobe are`ternporarlly suspended during continuation of the force majeure If either party:s obligation rs affected lay ar y of the causes of force majeur :, the nam affected shall prnrnpf y not f r the cattier party in writing, giving full particulars of the force majeur as,soon as possible after. itiopecur.reito'otthaipapa&orpausgs relred.rupo.n, fig �4ssigrirnerit lvtotorglabe may not assign all ear arty panel its rtghte, `privileges, ar duties under this Ag,reemnent Without the poor' written approval aux#ti reee Car cation and Grit' Any menattempted a signmer t without approval Is; vOld, and constitutes a breach of this 4gt 1 T In +de rrnl y +Toter globe covenants to fully ifada nify save, and' field harmless the Corpora`tlon, the City, their r rspectrve +officers, employees, arnd a ernts ,('i ndemr f es a airist all °habt ey dama. , loss; claims 4er tapds, an+d actlorra- of`an ;aklnd on accounersot al t of P 1..0101710S.,. -:'(t tcl rcll fit, itlydulimiting the .foreg0ing, workers' Cor pWU' , ,!op Sand death claims), or propie y lowor damage of airy` WO , which s ee apt ul ur are 1n n manner connected ,v l .: ore claimed to► ar r`se out of et hte In any manner cornaectecl With INatorglooe ..:.activities conducted under or lnck!ental to this Agreement, l rcludl rg ant inJur y, loss or daxnnage caused' y the sole or contrl�ti . try negligence of orf, or a l! of lea Inclenrnitees. Jf otorglooe must, at its .oWn a pense investigate all' doges ,claims atie demands aftend: to thelrsettler re rt or_Other al!s osltlon fetend all.. actions ;f ase err those cut s ar d cfernands Wltli counsef� sate factory-1•,,0:111.en thew, -end ey alb' charges' of attorneys e d all 'other ,c, enc expenses of any kind arisingc fhe liab llty damage, foss,., claims,. deintands, or� -actlons vents 0f Defauit by Motorgiobe. The fii o vtrig'even constitutes default of this greerrt eht:4y Matt rtiv::tae, • a Failure of Mi torglot a ta,timeiy, #ally ar d rmpletely carttply Stith any ane or rrtoro of'the requi mer ts, r oligatians dr #ies� ternys, carrolfln ,:or. *arrarwties:of this Agr'ement, other than;the requirerrtent to create a minr�ra�rm.rturnber tf ria l' fobs or nei tarn a minimum, number of;obs many specific: year,. 'However, the min muni number of a nr jobs must; be er t dl rid t t r.ined bar the pend of -fete cantractterni b The Corporation or City determines that any representation or warranty on bellaif of Matarglpbe contOtned rrt this Agreement' or iii an f#nancral stetemont, certificate, repor�t ar opinion submitted= to Corporation n connection }with 'furls AAreemenwas :incorre: gar rrrisleading,:In any matenat respect*e shade , At1y ju lgmerrt`ts assessed ag.ein msnt ar cstlrer a alrist the property of f1�Ilotar tobe"with r sped to a claim rernstn" unpaid?, • undischarged, r -riot Arsnrdteeefor a period o 1:24 days, d Motorglobe snakes ; n a8e gnment far the bepefit of crediic�rs. e, Motorg!obe f files a petition in bankruptcy," oris adjudicated insolvent or"' barrisrupt• f, if tapes owed icy lulu orgiobe become delingirerrt, and tiatorglobe fells' to timely and properly follow the legal procedures:fur protestor contest. g M torglvbe cf ariges the general`character of business as Co iducted,as,of ti e date this Agreement is approved bylhe o paratiari 13 Notice"of Default, Should.the Corp arattart a City deterrrl`tie that Mctorglehe is firs defat It according to the terms oaf this„ Agreemer4 the Corpnrailon dr City shall notify Motorgiabe in writing of" the everit.af'defadlt and: proulde 6g days frons .the date of the, 'notice ("Cure RefiOd'ifOr Motorglobe to cure the erell't of default 14 Results of lin tired Default After exileusting good faith attempts tc address Orly , default during the Cures `period; artd taking ntor,acc�ount�any extenuating circumstances that might have occurred through nolauJt`of Motor0lobe, as detern'i nod by the Board of "Director's of the+Cprporattan, tate foil wing. actions t1tt�st be faker for any default`that remains cured after; he Curt: Period. llittatorgln%aiSharepay all fur ds paid" Y CP10 under,tt reement": Motorglpiae shall pay Corporation reasonable attom". ey fees and coasts of court o collect mounts due tor Cor'paratic n If hot immediately repaid upon demerit rom the C ir°poratiion nn�,ror rai a BVSI ES8 Tice°AGREEM NT c Upon payment `by'i livtorg obe f all sums due, the Corporation and: Motorglobe shall have ho,further o lig tions to orae another under this Agrement. dam e.. The Corporat on r ay pursue all reined es:avallable under law. No Waiver. eider -the pity ooh the orporation may die held liable for any consequential a,, €leo waiver of any covenant ortOndition, or tlreach df any`covertentsor condition of this Agreement,"constitutes a waiver of any subsequent breach of the covenant or condition of the Agreement. b. No waiver of any covenant or condition, or the breach of any covenant or condition of this Agreement, justifies or: authorizes the nonobservance on any other occasion of the covenant or condition,or any other covenant or condition of this Agreement. c Any waiver qr indulgence<of Motorglobe's default,: ay not be considered an estoppel against,the Corporation. d. Itis expressly°understood that if at ar ylme Motorglobe ` s in=default iii any`of itsconditions or covenants,o this Agreement, the failure:on the.part of Corporation to promptly availitself'of the rights a.nd rernedies ti atthe Corporation may' have,; will not be considered a waiver orrihe-,:part of the Corporation, but. Corporation'rna•y at anytime avail itself of the rights ori remedies. or elect to terminate thio Agreement of .account of,••,•he -default. t Matorglobe-speoifi+ aily.agreesthat Corporation shall only be:liable,to IVlofr rgiohe for the actual arriount cif the r.,:gy grantsFto be conveyed to Motorglobe am shall not be.iiable to Motorglobe for any actual or eonsequential;damages; direct or indirect, it terest, attorney fees, or cost` of court for any act of default, by Corporation under the terms of this afire mien f . Payment Eby Corporation is strictly limited tto those funds, so allocated, budgeted, and collected solely during the grantterm oft* agreement Corporation shell use its best :fFort to mi anticipate econoc conditions and to budget' ;accordingly However, it is fur'ther.understood and agreed that, should'.the actual total Saieflat revenuecollected for any one ear,be'E'less th°ani th stotal ernoerit of grants to bkpaktto!ali contracting �partieswitCoporaio n forthatyear,th•eninthateenall contractingpaes sa1receve eirpro rata share of the avalable:sales tax revenue for'that,year, less Corporation's customary and acral posts and expenses, -as compared to,each cora ctingrparties' grant amount for tha�tuyear, and Corporator ; shall notb liable to for any deficiency atthat til a or of any;trrtte in the:future. I nYthis event, .Corporations will provide all supporting documentation; as requested Payments to be made shall also require a.writtert request from Motorglobe to:be accornpanred� by all necessary upportrng documentation. e of 1Q, axgta s AUSNE6SINCENTIVE AG§EEMa T 17. Notices. required[Wrrtte notices shall be,ser rif ailed,, certified rn i post prepaid, addressed as follows,: (Motor' lobe: 0be Corporation ibex 27'i 82-5 s,. pus Chrpsti, TX 78427 Business end Job Deveio ment o e ration Attrt Executive Director 1201 Leopard Corpus Christi Texas 7840:1.. A dopy c f ali notices aril evrresOondent r ust be sent t� following ddr ss: ty at,th City:of Carpus -Christi Attr-l. City ,Manager: kf lox'. 277 Corp s.! l ristri 60-0277 c Notice i eff c tcve upon deposit 1q400 United States rriail in the: mannere provided.atxwe 8 rpbratlai of other docurnerits The Co pusi� nate .8usire s -end Job nevelOprnent Corporation Guideliness and, Catera for: ranting Business fnoerttives {"+Corporation ,Culdelines�), as, amended,:are incorporated int, this Agreement. t; - errd;men s3 r -Modifications NO: r mediiflcationa tri this Agreemeht maybe made, nor any :provision waived, unress in writing signed by a person duly authorized to, sign agreements on behalf -of eacF party; 20 -1 arab ihship.:of Parties }lig 0fici nrngAiii$ Agree �nt, both the , otparatiar ari Moto40be will act on an individual capacity, and ilk as agents, representatives, emptoyees,, employers,, partners, joint venturers:; or associates of one another. 'The crnpleyees`or agents of`eiiher�party.may not be, .nor -be -construed to be, the ernpliiye or agents the other party for any ^purpose 2i`l i options The pt ons in this gree .�nt :are for�co.nvenience Qr ly and are, not a part of tars A neer ant Toe :040006 :4p. net #1. ;ire. + way ijrrat# oramplify iiia ter re a rid provisions:.of this. Agreement; veratrl�tjr�: I4701 10 iffor in re ' on, any ctfilnsdpateg! p bdivisio ,ti tree► roVi for „ ,, :',,-,es, or word of this Agreement or the Lappllcetiorrkctf thre is A mutant to arty; person or birournstance is, :to .any,extent: held;illegal,tnvalii, or°unenfrrceab1e: under present.pr future law ar by a fines jird nneht of spurt of c,ampetont jurisdrettan., then`the remainder ofihts Agreeme t, yr the a phcatlon of the fern` or provision to persons or cIrbumsttnces-other tha those -as to'uwhich Is.heid illegal, ipvaiid, or unenfor:eabie, wilt ilei be affe to b the;lsw ur jud rr�ent, far it ls the deffr ute intent of the parties tee this Agreement that every section, paragraph, sukdiviston, clause, provision, phrase, orll or'd of this:Agreement tae,. given ,full force and effect for its purpbs+s, b To the extent' that any crause or provision is held iliegaiowaltd, or unenforceable Un4er present orfu ure levo efife ttve dOrincrtifelerrn of this,. Agreement, then the .rernatnder of this Agreement Is not .affected; by the law,,,.and fn heresof any illegal, invalid, or unenforceable clauseer provIsiof,; a clause er provision, as similar in terms to the`Hiegel, invalid, or unenfarceai le clause or prov slon,.es may be possrble and. be legal, va d► and' enforceable,:will be added toth s Ag.. reerr ent automatically. 23. Venue: Venue:for any legal action related is this'Agreement Is in iUr eves County, Testas. 24 :.:Sole:Agreement, ;This:Agreem ent 0 nstitt tes t e` sole. Iagc r€err:err# hetween, Corporationand i ilotorglabe Any.prior agreements, promises, negotiations, or representations, verbal ar otherwtse, not:ex} ressly stated in this Algreerrient, are r f rte; fv res;,and. effect: 25, :Survival,ofterms af.agreement:'and obligations of parties. The terms of this agreement the o ligation,.of the,parties relating to -Section 14.a and b shall' survive the termination of this agreement. Corpus Christi Business & Job Developm3 By: Eloy'Salazar . President Dater' Attest: Ardis hapa Assistant Secretary Mage of ',grgt be BUSwcgRnyp.etqFtEEMENT' •Coomber THE STATE OF TEXAS COUNTY OF NUECES:. This ';instrument was acknowledged before me on , 2012, by President for Little Boeing Blue, tic , a Texas for-profit oration, on behalf of the corporation_ Nolan/ Pub State .of Texas ELAINE L''T STATE Dv Zi..: u, = .. , F4,,,. tee, Charlotte Yoche Assistant City Attorney For City Attorney BUSINESS INCENTIVE PROJECT SERVICE AGREEMENT This Business Incentives Project Service Agreement ("Project Service Agreement") is entered into between the Corpus Christi Business and Job Development Corporation ("Type A Corporation") and the City of Corpus Christi, Texas ("City"). WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas Revised Civil Statutes (Development Corporation Act of 1979), now codified as Subtitle C1, Title 12, Texas Local Government Code, empowered local communities with the ability to adopt an optional local sales and use tax as a means of improving the economic health and prosperity of their citizens; WHEREAS, on November 5, 2002, residents of the City passed Proposition 2, New and Expanded Business Enterprises, which authorized the adoption of a sales and use tax *for the promotion and development of new and expanded business enterprises at the rate of one-eighth of one percent to be imposed for 15 years; WHEREAS, the 1/8 cent sales tax authorized by passage of Proposition 2 was subsequently enacted by the City Council and filed with the State Comptroller of Texas, effective April 1, 2003, to be administered by the Type A Corporation's Board of Directors ("Board"); WHEREAS, the Type A Corporation exists for the purposes of encouraging and assisting entities in the creation of jobs for the citizens of Corpus Christi, Texas; WHEREAS, the Board of Directors of the Corporation ("Board"), on September 10, 2007, amended the Corporation's Guidelines and Criteria for Granting Business Incentives; WHEREAS, the City Council approved the Corporation's amended Guidelines and Criteria for Granting Business Incentives on September 18, 2007, which the City Council incorporated into the City of Corpus Christi Economic Development Incentive Policies 2009-2011 on November 17, 2009; WHEREAS, the Board, on October 18, 2010, again amended the Corporation's Guidelines and Criteria for Granting Business Incentives; WHEREAS, Section 501.073, Texas Local Government Code (formerly Section 21 of the Texas Development Corporation Act of 1979, Art. 5190.6, Vernon's Texas Revised Civil Statutes), requires the City Council to approve all programs and expenditures of the Type A Corporation; WHEREAS, Little Boeing Blue, Inc. ("Motorglobe") has submitted a proposal to the Type A Corporation for a $125,000 grant for locating their headquarters in Corpus Christi; Page 1 of 3 Motorglobe53a6c685-1ab4-4e74-ab14-da75b9375d20.docx WHEREAS, the Type A Corporation, Motorglobe has executed a business incentive project agreement for the creation of jobs related to Motorglobe locating their headquarters in Corpus Christi. In consideration of the covenants, promises, and conditions stated in this Project Service Agreement, the Type A Corporation and the City agree as follows: 1. Project Service Agreement to Implement Business Incentives Agreement. This Project Service Agreement between the City and the Type A Corporation is executed to implement the Business Incentive Agreement for the Creation of Jobs between the Type A Corporation and Motorglobe related to Motorglobe locating their headquarters in Corpus Christi ("Business Incentive Agreement"). 2. Term. The term of this Project Service Agreement runs concurrently with the term of the Business Incentive Agreement. 3. Services to be Provided by City. a. The City Manager, or the City Manager's designee, shall administer funding on behalf of the Type A Corporation. b. The City Manager, or the City Manager's designee, shall perform contract administration responsibilities outlined in the Business Incentive Agreement for the Type A Corporation. 4. Appropriation of Funds. Any future payments by the City are subject to appropriation of funds by City's Council. 5. Effective Date. The effective date of this Project Service Agreement is January 1, 2013. 6. Amendments or Modifications. No amendments or modifications to this Project Service Agreement may be made, nor any provision waived, unless in writing signed by a person duly authorized to sign agreements on behalf of each party. 7. Severability. a. If for any reason, any section, paragraph, subdivision, clause, provision, phrase or word of this Project Service Agreement or the application of this Project Service Agreement to any person or circumstance is, to any extent, held illegal, invalid, or unenforceable under present or future law or by a final judgment of a court of competent jurisdiction, then the remainder of this Project Service Agreement, or the application of the term or provision to persons or circumstances other than those as to which it is held illegal, invalid, or unenforceable, will not be affected by the law or judgment, for it is the definite intent of the parties to this Project Service Agreement that every section, paragraph, subdivision, clause, provision, phrase, or word of this Project Service Agreement be given full force and effect for its purpose. Page 2of3 Motorglobe53a6c685-1ab0-4e74-ab14-da75b9375d20.docx b. To the extent that any clause or provision is held illegal, invalid, or unenforceable under present or future law effective during the term of this Project Service Agreement, then the remainder of this Project Service Agreement is not affected by the law, and in lieu of any illegal, invalid, or unenforceable clause or provision, a clause or provision, as similar in terms to the illegal, invalid, or unenforceable clause or provision as may be possible and be legal, valid, and enforceable, will be added to this Project Service Agreement automatically. 8. Captions. The captions in this Project Service Agreement are for convenience only and are not a part of this Project Service Agreement. The captions do not in any way limit or amplify the terms and provisions of this Project Service Agreement. The City of Corpus Christi Corpus Christi Business & Job Development Corporation Ronald L. Olson Eloy Salazar City Manager President Date: Date: Attest Armando Chapa City Secretary Approved as to Legal Form: , 2012. Charlotte Yochem Assistant City Attorney for City Attorney Motorglobe53a6c685-1 ab0-4e74-ab14-da75b9375d20.docx Page 3of3.