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<br />
<br /> STATE OF TEXAS )
<br /> ) KNOW ALL MEN BY THESE PRESENTS:
<br /> COUNTY OF LAMAR )
<br />
<br /> DEVELOPMENT CONTRACT
<br />
<br /> WHEREAS, Paris Economic Development Corporation, hereinafter called "PEDC," and
<br /> Paris Packaging, Inc., a Texas Corporation, have previously entered into a Development Contract
<br /> dated July 15, 1998, containing certain representations and promises associated with the loan of
<br /> $4,000,000.00 in funds from PEDC to Paris Packaging, Inc. to carry on a manufacturing
<br /> operation in the city of Paris, Texas; and,
<br />
<br /> WHEREAS, the aforesaid original note securing the loan of said $4,000,000.00 between
<br /> Paris Packaging, Inc. and PEDC is scheduled to mature on July 15, 2003, the same date that the
<br /> obligations of Paris Packaging, Inc. under the original Development Contract would expire; and,.
<br />
<br /> WHEREAS, Paris Packaging, Inc. has requested a renewal and extension.of the existing
<br /> note such that said note in the remaining principal amount of $3,392,165.54 would be extended
<br /> beginning July 15, 2003, for an additional one hundred sixty-five (165) monthly payments in the
<br /> amount of $32,000.00 each, with the final monthly payment of the unpaid balance being due and
<br /> payable on April 15, 2017; and,
<br />
<br /> WHEREAS, in consideration of the acceptance of said renewed and extended note, Paris
<br /> Packaging, Inc. is prepared to enter into an extended Development Contract on the terms and
<br /> conditions as set out herein; NOW, THEREFORE,
<br />
<br /> FOR AND IN CONSIDERATION OF THESE PREMISES, Paris Packaging, Inc. and
<br />PEDC agree as follows:
<br />
<br />1. That, for the term of this Contract, the same being for an additional one hundred sixty-five
<br /> (165) months, beginning July 15, 2003, and ending on April 15, 2017, Paris Packaging,
<br /> Inc. shall operate a business located in Paris, Texas, with a manufacturing facility located
<br /> at 800 W. Center Street, Paris, Texas, and shall at that location operate said business as
<br /> a printing, folding carton, and packaging manufacturing facility and/or related
<br /> manufacturing facility.
<br />
<br />2. That Paris Packaging, Inc. agrees to keep employed at the manufacturing facility located
<br /> in Paris, Texas, at least one hundred sixty (160) employees for the term of this contact,
<br /> said employment level to be verified by furnishing PEDC a copy of the employer's
<br /> quarterly employee report furnished to the Texas Workforce Commission.
<br />
<br />3. That Paris Packaging, Inc. shall keep the assets purchased insured against, fire and the
<br /> elements in an amount of at least $12,000,000.00, or in an amount equal to the most
<br /> current appraised value of the property for taxation purposes as said value shall be
<br />
<br /> EXHIBIT A
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