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07-091, ACI Holdings, Inc. (Renamed Baz Industries) consultant for Apple Tax revenue (reference agreements 97-024 and 01-100) EXTENSION O� AGREEMENT FQTZ CONSULTAT�QN SERVICES Reference is made to {A) the Agreernent for Consultation Services {the "Consultation Agreement"), executed in 2Q07, by and between ACI Holdings, Tnc., a California corporation, subsequently renamed Baz Tndustries, Tnc (the "Cansultant"), and the City of Cupertino (the "City"), as in effect immediately prior�o the Extension Effective Date (as hereinafter defined) of this Exfension of Agreemen� for Consultation Services; and (B} the Development Agreement, dated as o� Noveam.be�r X9, 2013 (the "Develap�ten# Agxee�ent"), by and between Apple Inc. ("Apple"), and the City, as in e#�ect on said E��ective Date. zn coz�nectio� wzth and pursuant to the prov�sio�ns o:E t�e Developnr�ent Agree�e�t, the paarties tk�exeto have agzeed that the Consultation Agreement shall be extended pursuant and subject to the terms and provisions of this �xtension of Agreement for Consultation 5ervices (this "Extension"). For good and valuable consideration, the receipt and sufficiency of which are hereby affirmed and acknowledged, the Consulfiant and fihe Cifiy agree as follows: 1. Effective Date and Tnterim Extension. Except#ox any znterim extensxoz�o� the Consu�tatio�n Agxeennent provided far in this paragraph 1 (which shall become effective without regard to the Exfiension Effective Date, as defined in this paragraph 1), this Extension shall become effective only upon the occurrence of fhe "Ef�ective Date" af the Developxr�eanf Agreemenf(as defined ther.ean) and t�e expiration of any �ztigation challenging the Developmen't Agreeme�nt and the Project Approvals (as defined therein) without any lifigafion pending and with the Dev�elopment Agreemenfi and Z'roject Approvais then being in f.iill force and effect (fhe "Extension Eftective Date"); provided, howeve�r, that if the Extension Effective Date has not occurred on or before February 1.9, 2014 (being the stated ex�iration date in the Third Extension of Agreement for Consultaiion Services herekofo�e executed and c�elivered by fihe Cily and fihe Consultanfi), then without furfiher acEion by eifiher the City or the Consulfiant, the Cons�tltation Agreement as previously extended shall :nat expire and sk�alZ contin�te in tull farce and effect in accordance �ith its existing terms u�til the earlier of Ehe Extension Effective Date or March 1, 2Q1�. For a11 purposes of this Extension (including without lirnitafiion any infierim exfiension of the Consulfiation Agreement preceding the Extension �ffective Date), in th� event of any conflict b�tween any provision af this Extension and any provision o# the Consultation Agreernent, the provisions af this Extension shall contro� and su�e�rsede suck�p�ravzsion o��he ConsuXta�io�Agreement. 2. Com�liance with Law and Develo�ment Agreement. The terms and provisions of this Extension shall be perfarmed, observed and administered in compliance wiYh: {a) th� Iaws and regulations of thc Sfaf� of. Cali#ornia, irtcluding without liini.tation the provisions of the Bradley-Bur.ns Uniform Local Sales and Use Tax Law; and (b) the terms and provisions of the Development Agreement, as it may be amended from time fo time. Neither the City nor the Consultant shall take or omit to take any Page 1 of 3 Pages OAK#4834-456Z-8437 v5 action that, if tal<en or omitted, would cause all or any portion of the Cansultation Agreernent or this �xtension to be determined legally invalid. For all purposes o� the preceding sentence, acts or omissfons to acf by the App1e shaZl be deeraned acts nr omissions to act by the Consultant. The parties recognize fh�t fhe California State Board of Equalizatio�t (tk�e "SBO�"} may nofify the City of any proposed realloca�ion o� sales and use tax revenues �elat�ng ta App�e's deszgnation of the City as f,he poinf of sale. 5hould the SBOE notify the City o€ any proposed reallocation of Apple's sale and use tax revenues away from the City to other government entities, the City shall give the Consultant prompt notice of the City's receipt of any such notification from the SBOE. I..Tpon being so notified, �he Consultant will proxnptly repay to fihe City any sttch proposed reallocated funds tha�were paid to Consultant under the Coz�sultation Agreement or this Extension ("Repayment Amaunt"), and fihe Cifiy sha11 place the Repayment Amount into a third-pariy escrow accounf. The City and Fhe Consultant sha1l cooperate in any effort to avoid, zeduce o;r nt�llify a�t� such reallocation. If the SBOE concludes through its administrative process tk�at the City rnust repay such tax revenues to the SBOE (or the SBOE withholds fiax revenues other�vise payable ta the City in lieu of any City repayment to the SBOE), the parties agree �hat the Repayment Amount sha11 be released to the Citq in order for t�e City to satisfy the SBOE's reallocation or to reimburse or replace City funds expended for such re�location oz� withheld fro�an the City by the SBOE for such reallocation. Tf the SBOE or another entity with jurisdiction ul�imately nullifies or reduces the SBOE's proposed reallocat�on, the City shall return to the Consultant all funds held in escrow (or f�.�nds equal to tkte a�ount o#tk�e ariginal allocafian permifted} plus any ix�terest actually earned on such funds �rom the dafie of deposifi until the date of refund. 3. Compensation. From and after the �xtension E€fective Date, and notwithstanding fhe provisions of paragraphs 2(c),2(d) and 2(e) of the Consultation Agreement,for e�ch Fiscal Year of the City, all compensation to the Consulfant in excess of $62,500 {which shall be paid by the City to the Consultant with respect to new local tax revenue no� less fhan $250,000) shall be in an amount egual to 35% of such revenue in excess o# $250,Q00. If fhe Extensian Effecfive Date occurs after the commencement o£ any �iscal quarYer o� fihe City (currently July 1, October 1, J�nuary 1 and A�ril 1), then the percentage specified i.n �he preceding se�tence shall becorne applicable as of the commencement of such fiscal quarter of the City. 4. 'Z'erm. From and afte� the Extension Ef�ective Date, the ferm of fihe Consultation Agreement shall end at the close of the next fiill fiscal quarter following the fiscal quarfer in wh.ich the Development Agreement termination occurs for any reason, unless oth.erwisc agreed by the City and the Consuliant i� vvri�ing �uxsuant to the provisions of paragr�ph 6 of this Exfension. Page 2 of 3 Pages DAK#�483A-4562-8A37 v5 � 5. Fxscal Year. For all purposes of the Consulta�ion Agreement and this Exhension, each "FiscaX Year" of the City shall begin J'uly 1 of each calendar year ancl end June 30 of the succeeding calendar year. 6, Integration Clause;ModiEication o�Agreex�ne�t. From and after the Extension �ffective Date, the Consultation Agreemen�, as modified by this Extension, shall con#ain the entire understanding of the City anci. the Consultant rela�ed to the subject matter of the Consultation Agreement and this Extez�sion. No oral agreemenfs, understandings, promises made by �he parties or their agents whic� axe not contained in the Consultatxan Agxeexnent or �is Extension are binding. Neither the Cansultafiion Agreement nor this Extension may be mQdi£zed except by a written agreement executed by both pa�rties. IN WITNESS WHEREOF, the Consuitant and the City have executed this Extension by their duly authorized representatives, on the dates set forth below, to be effecfive as provided above. . SAZ INDU5TRIE5,INC.,a California caxporation (previously named ACI Holdings,Inc.,the "Consultant") D�te: I,/r��a i' BY� �� Gene Le o , c tary CITY OF CUPER�'iNO,a mtitnicip�l corparation (the "City") Date: � � �3 d � i 3 By: David Brandt, City Manager DatE: �� '��"��� BY� _ �� �� Grace 5chmidt,City Clerl< APPRQVED A5 TO FOIZM: � � - � c:.�� ��.. y: Carol Karad�, City Attorncy Page 3 0�3 Pages OAK#4834-4562-8437 v5 I THIRD EXTENSION OF AGREEMENT FOR CONSULTATION SERVICES Reference is made to the Agreement for(�onsultation Services (the "Agreement"), executed in 2007, by and between ACI Holdings, Inc., a California corporation later renamed Baz Industries, Inc. ("Consultant"), and the City of Cupertino ("City"), the First Extension of Agreement Consultation Services (the "First Ext�ension"), and the Second Extension of Agreement for Consultation Services (the "Second Extension"). Consultant and City hereby affirm and agree that the term of the Agreement, and as extended by the First Extension and Second Extension, shall be extended so as to ex��ire February 19, 2014, and in all other respects the Agreement and its terms shall remain in fu1l :Force and effect through and including said date. IN WITNESS WHEREOF, Consultant arid City have executed this Third Extension of Agreement for Consultation Services by their duly authorized representatives, on the dates set forth below. Date: �,,,,�,,,�,2,r„ 2t3 , 2013 BAZ IrJDUSTRIES, INC. (previously named ACI Holdings, Inc.,the "Consultant") By: G�ene Levoff, Secreta � � Date: t����r , 2013 CITY I�F CUPERTINO (the "C ity") , � _ � � ' / / �� - (i G� !/ By: �iavid Brandt, City Manager � _ C,�.Q���.,�,�.� Date: �>• �P , 2013 By: ��race Schmidt, City Clerk APPR1�VED AS TO FORM: �%�/�-.i � r o.. By: C'ar orade, City Attorney �� Page 1 of 1 SECOND EXTENSION OF AGREEMENT FOR CON'>ULTATION SERVICES Reference is made to the Agreement for Consultation Services (the "Agreement"), executed in 2007, by and between ACI Holdings, Inc., a California corporation later renamed Baz Industries, Inc. ("Consultant"), and the City of Cupertino ("City") and the First Extension of Agreement Consultation Services (the "First Extension"). Consultant and City hereby affirm and agree that the term of the Agreement, and as extended by the First Extension, shall be extended so as to expire February 19, 2013, and in all other respects the Agreement and its terms shall remain in full force and effect through and including said date. IN WITNESS WHEREOF, Consultant and City have executed this Second Extension of Agreement for Consultation Services by their duly authorized representatives, on the dates set forth below. Date: ��,�¢ntiBER � _, 2012 BAZ INDUSTRIES, INC. (previously named ACI Holdings, Inc., the"Consultant") By: G�� e off, e ry Date: �� ' Y , 2012 CITY OF CUPERTINO ;, (the "City") � � By: David Brandt, City Manager �� C' ` �= �� ' '� Date: (.t��%� , , 2012 �=L� fl�'t�;��� � By: Grace Schmidt, City Clerk APPRUVED AS TO FORM: (� 1 � By: Carol Korade, City Attorney Page 1 of 1 FIRST EXTE,NSION OF AGREEMENT FOR CON'�ULTATION SERVICES Reference is made to the Agreement ior Consultation Services (the "Agreement"), executed in 2007, by and between ACI Holdings, Inc., a Delaware corporation later renamed Baz Industries, Inc. ("Consultant"), and the City of C upertino ("City"). Consultant and City hereby affirm and agree that the term of the Agreement shall be extended so as to expire September 18, 2012, and in all other respects the Agreement and its terms shall remain in full force and effect through and including said date. IN WITNESS WHEREOF, Consultant and City have executed this First Extension of Agreement for Consultation Services by their d�zly authorized representatives, on the dates set forth below. BAZ INDUSTRI;ES, INC., (previously name� ACI Holdings, Inc., the "Consultant") Date: .j�„� o'� , 2012 By: en e o ; et CITY OF CUPE,RTINO (the "City") , Date:�f�u'v.2 �� , 2012 �lr�, ;. By: Amy Ch�f l;nt rim Ci nager Date: � �, 2012 ��Y�'���'" �'1/l0'—l' By: Grace Schmidt, City Clerk APPROVED A�+ TO FORM: ;. � ��'�'--- � �`"J By: Carol orade, City Attorney Page l of 1 S� ' � � 'rl: `} f,� . . � ����� ���� � �. � . � F �.����.�������� ���3�� . � ��a������,�'1�r�A Y�.J� �����������k..7 �� � , � ����������.��r�l�, ��� �-�����Y���, �xf��., � �.���li.��r-��i� �o�-����-�:��i���� ����-������'��r �`��r�sr��t��t�'� ���.� � ����s��it��� � ��;�������1 t� ���� �:�t�� of ����;�����o �l���i�i���f����•������#'� �� ��•���c�� ��ty �������r���l�x�� � � s��-�f���� ������������ o�`t.��� ����s��������� a��� ��������o�� ��'���� sa,��� �x.��� ���� ��� r������u�� �our��s �`�r � � � �`it�� t� b� ���•���� ������ ���1� �1��.� �� �'���fo�•���� ������r��i�r�, �x�� i�� ��b�id�ari�� ����������r �� c����e��������i�:fa'������� �c� a� "�.�����"�; �.��� � . ' � � 4 � � . � � ���T�:�.��.�, �t i;� i��t���c��� }�y �"���s�1�a��� ��� �i�y ����� s�xd ��cr����� �r��� b� a��o��t������ � � �c����'�x���z�� ��;c����� ��r���.����� �� �v�������� ��� �i������ i�s ���x���c���sa���n �'��- s��� s��-��cc� �� � ;. ������r��;����� ��.��� ������ ���� ����i�i�l� d�ri���� �'����x� r��� ����� ��� ���� ��� ���v����� ��r��r���� b� � ` ����1� f�r�1�� l�c:���fit o�`��ty ���i�}� �i�� �������� ��o� �����:x•��sc�r�������; �n� + � � f � i �h��-����A�, ������t���t �x��i ����R �i�� �� �����r ����� ����� ��������n�r�� ��r t�c ����s�s � � � ��s�ri��� �.�a�r�: - - � � � �7�' 7� �^ } � ���� / �—���J����� ���� ��F,—��.A.,��� ���1J�� .�J� f �����I�• � � d �. ���3����� �� ��� ���y�'����.�����__����r {�'c-�r�����a��� � f � _ �._.. _�:_,.�..�� , f ��r����lt�.��� ����a�� ����c��-��� ��� ������F��� s��-vi��� {�c�����t��v���r, ���� "��r�i�e��'� u�.����r t��� ; � ,���r�e����r��; = � � ; , ��� �.����� �r�� �����1 �1�� �u.�-��t sa��� �r�� u�e ��� re�7�1��� ����ei��#�ci b� �i�y �rc��n � 7 2 . ����1�. � . e i t ���� ��ca��-�������� r���� ���tl��do�o���s �� ���crc��s� t�� ����� �r us� �a� �'o� �"�ty t� b� = k ������1����� ���d x�r�����z�������� ����������� ���-���r��� Y•��z-�;�.r��������� ���`��-ts a���,.����� � � . . . . �. ��� ���°�vl�+e �� �1��� � c��:�����;� ���l�s�� �n�� ��s�ri����r� o���� ����� ����� ����s �:��� ���� � ��� r�������� r�c���v�c� �� ����� �`ral� �p���c. . t � �. �o��„�.����:��i�l� t� ��� ���t;�.i�f�� �.-����a�t�������� . . '. 1�� �r���s�c��r��i��� f�� ��������t����'s ���rfarr��a���� �f���� ���r����s� a� d�����b�� �r� ��r� �� � � � 1, ����#�� �`�������.�.r�� s������ ���:���f� t}�� f�l���k���� �:���������a�i�Y� �'o�; e���� ��t� �s��� }r�� d�ri��� t���: t��rr�� �c��v�r�� ��� t���� A������������, �� �'�l��w�: �. �a� ��'� �`��i a��� #����� ���� ��r���� ��� ������ �:c���r�� �� t����� ������������, ���v� ����� t�� f . � ���r����� ������� ���,� ��x�o���� I��� t����� r������� �-�u����-�c� �'�.�t� �A�������.c� �����rs � �����,�����, ������� ��� ��c�� �vc�t��� ��r���.�I������� �v��� z���c��� ��� �o�r��e,�����o�� �vit� a. ' �. r��p�c�t �o s�c�� �isr�� ����r, � � . � , . � .r� ' 4 �.' ����c� � . � �� � b IfJor any fiscal ycar during the te-mi coverer] by this Agreement, new local tax riever ue egmals "I "wo Hundred l�lfly Thousand Dollars ($250,000), then Consultant will receive the sum of Sixty -Two Thous -arid Five Hundred Dollars r ($62,50{0 as corgi ensati or) N ith respect to such f �sca {ear. (c) If, r any fiscal year during the ter,,, covcrc;d by this Agreement, new local tax mvenue exceeds Two Hundred Fifty Thousand Dollars ($250,000) but is less than Five Hundred Thousand Dollars ($500,000), then Consultant will receive the m of Sixty -Two Thousand Five Hundred Dollars ($62,500) an amount equal to twenty -five pereent 5% of -H such additional new local lax revenue between Two Hundred Fifty Thousand dollars ($250,000) and Five Hundred Thousand Dollars ($500,000), (d) If, for any fiscal year during the term covered by this Agreement, new local tax revenue exceeds Five Hundred Thousmid Dollars ($500,000) but is less than{ One Million Dollars ($1,000,000), then Consultant shall receive the sung of one Hundred Twcnty- ive 11ousand Dollars ($125,000) lu an arnount equal to fort pet•eent 0% of all such new local tax revenue between Five Hundred Thousand Dollars ($500,000) and One :lillion Dollars ($1,000,000). If four anv fiscal year dur i the terra covered th's Agreement, new local tax revenue exceeds One Million lion Dollars ($1,000,000), then Consultant shall receive the sum. of Thiiee Hundred Sixty -Two Thousand Five Hundred Dollars ($362,500) are amount equal to fifty percent (50%) of all such new local tax revenue in excess of One Million Dollars ($1,000,000). 3. Sole com el ation Both City. a;id Consultant expressly acknowled e and agree that Consultant will receive no compensation for any Services render .l.: under this Agreement other than the compensation - described in Paragraph 2, nor shall Con ultknit be entitled to any reimbursement from City for any costs or expenses incurred by Consultant in perfor~rning or preparing to per+forni any Services under and pursuant to this Agreement. 4. Payment Schedule Not later than thirty 0 days after the elate on which City r-ece've fl-on, the Board of Equalization of the Mate of California, a total of $250,000 or more of new local sales tax revenue which accrued from sales taxes paid by Apple during a fiscal year covered by this Agreement, City shall pay the Consultant the compcns tion described in Paragraph 2 of th's Agreement. Within 30 days, after the City receives from the State of California additional new local sales tax revenue paid by Apple within the same fiscal year as the initial payment, City shall pay to the Consultant additional Compensation as described in Paragraph 2 ofthis Agreement, page 2 {� a� � ys � '� i T{ 1 �� 5 �� ���f]���tl�r�� . � �.� ���c� �� �1�i� ,��;x��������a�, ���� f.��I����i��� ���•�r�� ����I� �������� �r��l��ir�� �x�������� �;� . . � � . "������ s���� ��.� ����,��r����' ��������s ����� �c��-����� ��'t��� to���I ������ ���� ���� t�� �aid � A �� � � �� ��r�i��� z� ������1�� z-�������� ��f �'it�, . �c��1� i(���� �c1��S ��.� I'�x�.����[.��'� I������5 ���.�7� ��1��� ��1� ��� ���� ' * * � ���� �� ��7��� V��1C�� �5 ��������{ �������f�d ��y �'�ty, ��s c���������� �'c�r ��c�� �is�a�� �.������� r���r��,�� ��� ����� � � � � �a�� �'rc�� ���.���'� ��.������ ��c���� ��a�at�� �� ��' t��� ��t� ��` ����� �. �����a���� ��� � 1�'� ��� �s . � �� ��r��p�� i�� �k�� ���� ��`C.������-���� ���d ����r��.� u�� ��.� ��� ��t�rc��s�� b� ,� ��, �� ��c�� ��s� �� �����1���c� fc�r �I�� ��a.�-�c:r� ��� ���,�t��z�, �:� r �. r��I`��! x �� ' . - � t . ,, ` ���i� �,��-���t����t s��.��� �r��������x��� �r� ��1� �� ���� �� ������ ����� #.� ��� �x� `� �������� . � ��� � ���5-��3� ����--��� ���C��� � a�rd���� ���� fi����� �{��r�. `����� A.�r����i�� �h���� �����r� �� .��x�� �C�, ����� ���� ���Z ��v� ��� �'u�rt���r f���e c�r �f����; ���vi�.�d� ������r� ��.a� ����s�lt�x�� s����� �� ����t���l �� r���i�� ���� ��n����������x� ��� �� �� �r�c��r t��i� � �r����r�� . � � � �'t�� ��� �i t� �`����� �r��r ���iri��� o� .�t��.� ��}, ����� �v����� ��,�n��ra��t��� ���1� �� ��c� �� � . � �����it��c� �� ��r�.�r��� �', �����, . � � ��: �. ������ ��ar � ' �� , �'oz� ��x��c���s c��`���s ������������, �it� ��c� C����.���r�.�� ��r�� ����'� ����� y��.�r ������ o� . �� .���� � c�f����� c��.����c��•���ar���� ���d� a�� ��.��� �� �������������r�i��� �a1����.t��r��x, � � �� �r������������t�����;����'� �?�a.rr���� �r�� ��� ���c�����t�o�� � . � ti ������:1����� ����r��� �� ��������z���'�, ���f���d ���' �o r�����tec� ��r ���y, a�d v�Tx�� ��u�sel of �ox��ul����'� �1����� ��a� �-e���������� �����ta�l� �c� C��t;��� a��� ����� ��t�y� ��� o�`����� a�a� �����o���s; ��r�����s� f���� ����{ ������.� ���i�r�, ��* ���su�t ��-o�x���t �r �a�x�tai��� � a.� �:� Y � �. , ���r� �����$ ��a�r��� �i��r �� � r��t��� �f'�r�� �������}�x t�f�i���.��� ���•�� ��� ��r�o���x�� a�y ��t� � _ �.����r ��.��s �.�,r���������, �x����t �o ���� ��t���� ����� az��� ���� ����z��, �c�io�� o�• l��s��t �i�� s �4 �u� a� a�A �� �o�������n ���t�� ���� �a������r��� �� �v����"�� �r����c�z���c� o�. ���� �a�t o��r�y �� ���� s��� ���de������d ��rso���. ���������.t ��v��� �.��� ���`����� ����� �i�����s��� b� �1�y, ��� . �r�t� �o�r���� ��"�������t�.���'� �l��i��; ���� r��,s�x�a���,�� ������t����� �c� �i�� �it�, i�� ��#����r�� t � ���i �������f��� �'r��x� �.r�y ���a� ��t��l� �������������� ���� v���c���y ��'�tI���.�.����+����r��. ���'� �� � �:�l.i� [�����������5�����i'1SC����x���7 C��'(���"S ��1� �'���.��'� �� ���:� �}�c��l�� ��1��� �c��� �� ��x]�1����� . � �.�y �x�y as c��.���c������o�� f��, ���������t��'� ����o�rrr���a�:� ��' ��a� ���t�c�s ���c���- t��� . A�r���������� ��n���l�,��t s���� ����� �i��, ��� ��`���r�, ar�� �m a�o ��� �a����s� #'�-o�� �� � . � �' � . ������-�� ��r�����a��t r���� ������{� �'�� ��������r����n��� ��+ ��r���•i����i���. �r��� i•�� ��t �� �� s�i� . . � � �����f � � � �i a� ��c��;�3 r 4� 9. Intc gyration f scf � di cation o Agreement The provisions of this Agreement contain the ntir e undi-.%rstanding of City and Consultant related to the subject matter of this Agreement. No oral agreements, understandings or promises made 'by the parties or i cir agents which are not contained in this Agreement are binding. This Agreement may only be mod *#i d by written arc nt executed by both parties. W WITNESS WHEREOF, Consultant and City have executed this Agreement y their duly authorized representatives, on the dates set fort h below, to be effective as ro id d, - above. IT ERTIN Date: By 1"J tity'Manager, City of c11111no CI HOLD GS N ,, a Cal i form corp ration Date:-- By lp ter Oppenheimer ief Financial Officcr & Senior Executive Vice President Page 4