1998-10-21-PEDC - Laserfiche WebLink

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384 1. As a condition precedent tot he obligations of PEDC under this agreement, TIPS shall purchase the Babcock & Wilcox (B&W) facility in Paris, Texas, for the operation of a metal and pipe fabrication shop. 2. PEDC agrees to provide TIPS with a cash incentive of six thousand six hundred and sixty- seven dollars ($6,667.00) per permanent, full-time job created at the Paris, Texas, facility as stated in Paragraphs 3 through 9 below. These annual payments shall not exceed five hundred thousand dollars ($500,000.00), with total cumulative payments not to exceed two million five hundred thousand dollars ($2,500,000.00). 3. On the date of closing of the real property acquisition by TIPS from B&W, PEDC agrees to pay to TIPS an initial payment of five hundred thousand dollars ($500,000.00). 4. PEDC agrees to pay cash incentives to TIPS based upon employment by TIPS, using the following methodology except for the first year: the total number of employees at the end of the first year must be 150 for TIPS to qualify for the second payment of $500,000. The average number of employees in Years 2 through 4 must be increased by 75 employees per year to qualify for the maximum annual payment of $500,000. For example, the average number of employees during Year 2 must be a minimum of 225 to qualify for the full annual payment of $500,000 at the end of Year 2, and the average number of employees during Year 3 must be a minimum of 300 to qualify for a full annual payment of $500,000 at the end of Year 3. 5. Within ten (10) days following the expiration of one (1) year from the date TIPS should make its first shipment of complete pipe fabrication in the Paris facility, PEDC agrees to pay TIPS a second payment of up to an additional five hundred thousand dollars ($500,000.00) based on the job creation credit as described in Paragraph 4 hereof. 6. Within ten (10) days following the expiration of two (2) years from the date TIPS should make its first shipment of complete pipe fabrication in the Paris facility, PEDC agrees to pay TIPS a third payment of up to an additional five hundred thousand dollars ($500,000.00) based on the job creation credit as described in Paragraph 4 hereof. 7. Within ten (10) days following the expiration of three (3) years from the date TIPS should make its first shipment of complete pipe fabrication in the Paris facility, PEDC agrees to pay TIPS a fourth payment of up to an additional five hundred thousand dollars ($500,000.00) based on the job creation credit as described in Paragraph 4 hereof. 8. Within ten (I0) days following the expiration of'four (4) years from the date TIPS should make its first shipment of complete pipe fabrication in the Paris facility, PEDC agrees to pay TIPS a fifth and final payment of up to an additional five hundred thousand dollars ($500,000.00) based on the job creation credit as described in Paragraph 4 hereof. 9. The cash incentive paid to TIPS is based upon the average number of jobs created and maintained during the incentive period as verified by the Employer's Quarterly Employment Reports filed with the Texas Workforce Commission. 10. After the closing of TIPS' acquisition of the B&W facilities, TIPS agrees to proceed with due diligence to make modifications, improvements, and alterations to the existing facilities that TIPS should consider necessary or desirable to operate the fabrication shop. EXECUTED this 21st day of October, 1998.