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Document Preview Economic Development and Incentive Agreement |
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Title: |
Economic Development and Incentive Agreement |
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Entities: |
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Date: |
2000 |
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Preview shows 4KB of 23KB total |
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Price: |
$41 |
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ID: |
#345417 |
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ECONOMIC DEVELOPMENT AND
INCENTIVE AGREEMENT
THIS AGREEMENT ("Agreement") is made and entered into by and between the
PAMPA ECONOMIC DEVELOPMENT CORPORATION ("PEDC") and UNITED MEDICORP, INC., and
its wholly owned subsidiaries ("Medicorp").
For and in consideration of the grant and guaranty hereinafter provided
and the mutual covenants and agreements contained herein, and intending to be
legally bound hereby, PEDC and MEDICORP, do contract and agree as follows:
1. Definitions and Reference Terms. In addition to any other terms defined
herein, the following terms shall have the meaning set forth with respect
thereto.
a. Full-time Equivalent Employee: Each 2,080 hours logged per year.
b. Calendar year: Beginning January 1 of the referenced year.
c. Incentive Package: All funds to be paid to or expended for the benefit
of Medicorp and any guaranty made on its behalf by the PEDC.
d. City: The City of Pampa, Texas.
2. Incentive Package: PEDC hereby agrees to make the following grants and
loan guaranty to and in favor of Medicorp for its operations within the City
and employees located at its Pampa facility:
a. $192,000.00 cash grant to be paid upon the closing of the purchase of
the real property and the improvements located thereon where Medicorp's
operations will be conducted within the City, subject, however, to the
provisions of Paragraph 3 below.
b. $23,810.00 to be paid, or has been paid, to Hughes-Roth Capital Markets,
Inc. for its services rendered in the negotiations of the incentive
package and the location of Medicorp's operations in the City.
c. PEDC agrees to pay to Medicorp $27,400.00 per year for five (5) years,
payable on the anniversary date of this Agreement (the "Installment Payments").
Such Installment Payments shall be allocated as follows: (i) to reimburse
Medicorp for the total of the monthly payments made by Medicorp for the months
preceding the anniversary date of this Agreement to its lender (principal and
interest) on the loan for the purchase of the building; and (ii) after
deducting such total under (i) from said $27,400.00, Medicorp will pay, within
thirty (30) days after receipt of said Installment payment, the balance of such
annual Installment Payment to Medicorp's lender to be applied to said original
loan; provided, however, Medicorp will not be required to make any payment to
lender in excess of the balance of the loan.
1
{PAGE} 2
Medicorp shall grant PEDC a second lien in the form of a deed of trust on
the land and the improvements located thereon to secure PEDC's guaranty of
Medicorp's loan with its lender. This lien shall represent a claim against
Medicorp's equity in the real estate equal to the amount paid by PEDC, if
any, to the first lienholder pursuant to a guaranty provided by PEDC to
such first lienholder. This second lien shall terminate on the earlier of
the date PEDC's guaranty is released by the first lienholder or Medicorp
pays off the balance due to the first lienholder.
PEDC shall be released from any obligation to pay any unpaid Installment
Payments to Medicorp if (i) Medicorp is declared in default of its
obligations to its first lienholder, or (ii) Medicorp discontinues its
operations in Pampa within five (5) years of the date hereof.
d. Employee grant to be paid and adjusted over a term of eight (8) years,
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