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RESOLUTION NO. -~~-~
A RESOLUTION APPROVING THE ASSIGNMENT
BY DELTA CASE COMPANY, INC. OF ITS LEASE
AND AGREEMENT BETWEEN DELTA CASE COMPANY
INC., AND THE CITY OF WEST MEMPHIS, ARKANSAS
AND THE ASSUMPTION THEREOF BY GEORGE KOCH
SODIS, INC.; AND PRESCRIBING OTHER MATTERS
RELATING THERETO.
WHEREAS, by Ordinance No. 878 of the ordinances
of the City of West Memphis, Arkansas (the "City"), passed
and approved on February 3, 1977 (the "Bond Ordinance"),
there was authorized the issuance of $500,000 in principal
amount of the City's Industrial Development Revenue Bonds,
Delta Case Project, Series A (.the "Bonds") for the acquisi-
tion and construction of a manufacturing plant consisting
of lands, buildings, improvements machinery, equipment and
facilities (the "Project"); and
WHEREAS, by Ordinance No. 879 of the ordinances
of the City, passed and approved on February 3, 1977 (the
"Lease Ordinance"), there was authorized the execution and
~ ~ delivery, of a Lease and Agreement (.the "Lease Agreement") wherein
the City as Lessor leased the Project to Delta Case Company, Inc.
("Delta Case") as Lessee; and
WHEREAS, Delta Case is currently in default of
certain of the provisions in the Lease Agreement
to cause those defaults to be cured as a part of
for its agreement to assign its interests in the
as Lessee to George Koch Sons, Inc. ("Koch") and
to assume theobligations of Lessee under the Lea:
prospectively from the date of the assignment by
and proposes
the consideration
Lease Agreement
Koch has agreed
~e Agreement
Delta Case; and
WHEREAS, the assignment and assumption of the Lease
Agreement is necessary in order to cure the defaults existing
under the Lease Agreement, to alleviate the unemployment
occasioned b the defaults in t
y he Lease Agreement_,and to prevent
the occurrence of a default in the payment of the Bonds.
NOW, THEREFORE, be it resolved by the City Council
of the City of West Memphis, Arkansas:
-2-
Section 1. That the assignment by Delta Case
of its right, title and interest to and under the Lease
Agreement to Koch and the assumption and agreement by Koch
to pay, perform and discharge all obligations, liabilities
and duties of Delta Case under or with respect to the Lease
Agreement and arising subsequent to the assignment by Delta
Case are hereby approved.
Section 2. That the Mayor and City Clerk be and
they are hereby authorized and directed, for and on behalf
of the City, to do all things, to execute all instruments,
and to otherwise take all action necessary for the consummation
of the assignment and assumption of the Lease Agreement to
Koch.
PASSED: .March Co , 1980.
APP D:
By
ayor
(SEAL)
CERTIFICATE
The undersigned City Clerk of the City of West
Memphis, Arkansas, does hereby certify that the foregoing
pages are a true and compared copy of an ordinance passed
at a regular session of the City Council held at the regular
meeting place of the City Council at o'clock .m.
on the day of March, 1980 and that the Resolution
is of record in Resolution Book No. , Page ,
now in my possession.
GIVEN under my hand and seal this day of
March, 1980.
i y C
(.SEAL )