EXHIBIT A

 

 

 

 

 

 

 

_____________________________

 

 

AMENDMENT TO

 

PERFORMANCE AGREEMENT

 

Dated as of January 1, 2006

 

 

Amending a

 

PERFORMANCE AGREEMENT

 

Dated as of October 1, 1997

 

_____________________________

 

 

 

AMONG

 

 

CITY OF LAWRENCE, KANSAS,

 

SUNSHINE PROPERTY, L.L.C.

 

AND

 

MICROTECH COMPUTERS, INC.

 

 

 

 

 


AMENDMENT TO

PERFORMANCE AGREEMENT

 

 

            THIS AMENDMENT TO PERFORMANCE AGREEMENT dated as of January 1, 2006 (the “Amendment”), amends a Performance Agreement dated as of October 1, 1997 (the “Original Agreement”), among the CITY OF LAWRENCE, KANSAS, a municipal corporation organized and existing under the laws of the State of Kansas (the “City”), and SUNSHINE PROPERTY, L.L.C., a Kansas limited liability company (the “Tenant”) and MICROTECH COMPUTERS, INC., a corporation organized and existing under the laws of the State of Kansas (the “Company”);

 

            WITNESSETH:

 

            WHEREAS, pursuant to K.S.A. 12-1740 to 12-1749d, inclusive, as amended (the “Act”), the governing body of the City passed and approved an Ordinance on September 16, 1997, authorizing the City to issue its Industrial Revenue Bonds (Sunshine Property, L.L.C. Project), Series 1997A, in the principal amount of $775,000 (the “Series 1997A Bonds”), and its Taxable Industrial Revenue Bonds (Sunshine Property, L.L.C. Project), Series 1997B, in the principal amount of $1,325,000 (the “Series 1997B Bonds;” the Series 1997A Bonds and the Series 1997B Bonds are collectively referred to herein as the “Bonds”), for the purpose of acquiring, constructing, furnishing and equipping a manufacturing facility (the “Project” as more fully described in the hereinafter referred to Lease), and authorizing the City to lease the Project to the Tenant pursuant to the Lease to be entered into by and between the City and the Tenant at the time the Bonds are issued (the “Lease”) between the City, as lessor, and the Tenant, as lessee;

 

            WHEREAS, the City is authorized and empowered under the Act and K.S.A. 79-201a, as amended (the “Abatement Statute”) and Resolution No. 5861 of the City to exempt from ad valorem taxation portion of the Project financed with the proceeds of the Bonds; and

 

            WHEREAS, pursuant to the foregoing, the City entered into the Original Agreement with the Tenant and the Company in consideration of the Tenant’s and the Company’s commitment to purchase, construct and equip the Project and to create a certain number of jobs; and

 

            WHEREAS, due to a change in business conditions, the Company has reduced its total work force below the projected 48 employees, and the Company has asked the City to amend the Original Agreement to increase the payments the Company makes to the City in lieu of taxes to 100% of the ad valorem taxes which would otherwise be due with respect to the Project if it were not exempt from ad valorem taxation;

 

            NOW, THEREFORE, in consideration of the premises and the mutual representations, covenants and agreements herein contained, the City, the Tenant and the Company do hereby represent, covenant and agree as follows:

 

            Section 1.        Amendment of Section 2.3 of the Original Agreement.  Section 2.3 of the Original Agreement is amended to read as follows:

 

            Section 2.3.     Project Costs.  The Tenant hereby agrees to make a payment to the City on each June 20 and December 20, commencing December 20, 2005, in an amount equal to 100% of the ad valorem taxes which would otherwise be due with respect to the Project Costs if the Project were not exempt from ad valorem taxation.

 

Section 2.        Effect of Remaining Provisions.  All other provisions of the Original Agreement not in conflict with the amendment contained in Section 1 hereof shall remain in full force and effect.

 

            IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed in their respective names, all as of the date first above written.

 

 

                                                                                    CITY OF LAWRENCE, KANSAS,

 

 

 

(Seal)                                                                           By: ___________________________________

                                                                                    Name:  Dennis Highberger

                                                                                    Title:  Mayor

ATTEST:

 

 

___________________________________

Name:  Frank S. Reeb

Title:  City Clerk

 


SUNSHINE PROPERTY, L.L.C.,

a Kansas limited liability company

 

 

 

_______________________________________

Mike Y. Zheng, Member

 

 

 

_______________________________________

Dana S. Zheng, Member

 

 

 

 

MICROTECH COMPUTERS, INC.,

a Kansas corporation

 

 

 

 

_______________________________________

Mike Y. Zheng, President

 

 

 

 

 

 

 

 

Amendment to Performance Agreement