BUSINESS RETENTION AND EXPANSION PROGRAM

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1 BUSINESS RETENTION AND EXPANSION PROGRAM 214 E. Main St. Cuero, Texas phone fax The application for the Business Retention and Expansion Program must be filed with the Cuero Development Corporation at 214 East Main Street, Cuero, Texas prior to filing of Building Permits with the City of Cuero. Maximum amount per applicant: $10,000 Applicant Mailing Address City, State, and Zip Phone Number Fax Number Description of the Project (Attach additional documentation if necessary) Positions to be created (Full & Part Time) Annual Payroll Positions to be retained (Full & Part Time) 1

2 How long has business been in existence? Total cost of proposed project: $ Amount of grant requested: $ (Up to 50% of Total Cost above not to exceed $10,000) This is a cost reimbursement program. Time Frame (length of project beginning/ending month Required Attachments List of Improvements Upon Approval - Bids from contractors/suppliers you intend to utilize Map of Project Location Documentation of a completed Business Plan from the University of Houston Victoria Small Business Development Center (SBDC) shall be included with the completed application. SBDC contact information: or toll free SBDC. Completion of Performance Agreement Exhibit B Condition of Receipt of Public Subsidies/Agreement Regarding Repayment of Interest Please understand that the submission of a completed application is no assurance of project funding. The Board reserves the right to negotiate with successful applications. All decisions of the CDC Board are final. Employees/families of the Cuero Development Corporation are not eligible for this program. Applicant Signature Property owner signature (if different from applicant) CDC Receipt of completed application Approved by CDC Board of Directors 2

3 PERFORMANCE AGREEMENT THE STATE OF TEXAS COUNTY OF DEWITT THIS AGREEMENT is entered into by and between the CUERO DEVELOPMENT CORPORATION ( CUERO DEVELOPMENT CORPORATION ), a Type B Sales Tax Non-Profit Corporation whose address is 214 E MAIN STREET, CUERO, TEXAS 77954, and *** I. BACKGROUND 1.1 Purpose: Cuero Development Corporation is a tax-supported non-profit corporation, whose primary income is from sales tax collected within the City of Cuero and dedicated exclusively to economic development. This sales tax supporting entity is authorized as a local option under V.A.C.S. Art , Sec. 4B. Cuero Development Corporation exists for the primary purpose of developing, stabilizing, diversifying, and expanding the local economy through the retention, expansion, and recruitment of employment opportunities in order to benefit citizens of Cuero and the surrounding areas. 1.2 Project: The project and performance requirements to be implemented by means of this agreement are generally described as follows: Funds are to be utilized towards. The performance requirements shall be continuously maintained during the entire term of this agreement. 1.3 Request for Funding: The *** has requested funding in the amount of ( the Contract Amount ) from the Cuero Development Corporation to assist in paying for the project. NOW, THEREFORE, in consideration of the premises and of the mutual covenants, warranties, and agreements of the parties, it is agreed as follows: II. ECONOMIC BENEFITS AND INCENTIVES AND PERFORMANCE REQUIREMENTS 2.1 BY THE CUERO DEVELOPMENT CORPORATION.1 Funding by Cuero Development Corporation: Cuero Development Corporation shall provide a total of to be applied towards the expenses incurred by *** in connection with the project. In no event shall the Cuero Development Corporation be required to provide the Contract Amount prior to *** complying with the conditions precedent as set forth herein. Failure by Cuero Development Corporation to timely and fully comply with any performance requirement shall be an act of default by Cuero Development Corporation giving ***, as its sole remedy, the right to the Contract Amount subject however, to the terms and conditions contained in Article VI, paragraph 6.1, herein. 2.2 *** S CONDITIONS PRECEDENT:.1 *** shall, by not later than the effective date of this agreement, execute and deliver to Cuero Development Corporation, that CONDITION OF RECEIPT OF PUBLIC SUBSIDIES/AGREEMENT REGARDING REPAYMENT OF INTEREST attached hereto as Exhibit B..2 In the event that *** fails to meet the conditions precedent as set forth in this paragraph, Cuero Development Corporation shall be under no obligation to deliver the Contract Amount and this contract shall terminate and the parties hereto shall have no further obligations hereunder. 3

4 .3 When the entire grant project has been satisfactorily completed and reviewed, the applicant shall present the CDC office with copies of all paid invoices, including copies of cancelled checks and/or credit card receipts, for a single reimbursement of the approved funding amount. III. COVENANTS, WARRANTIES, OBLIGATIONS AND DUTIES 3.1 *** covenants and warrants to Cuero Development Corporation, that no certificate or statement delivered by *** to Cuero Development Corporation in connection herewith, or in connection with any transaction contemplated hereby, contains any untrue statement or fails to state any fact necessary to keep the statements contained therein from being misleading. Any false or substantially misleading statement contained herein or failure to timely and fully perform as required in this agreement shall be an act of default by ***. Failure to comply with any one covenant or warranty shall constitute an act of default by ***. IV. SUSPENSION/TERMINATION 4.1 Cuero Development Corporation, under the following circumstances, and at its sole discretion, may suspend its obligations under this agreement or terminate this agreement and recapture from *** the Contract Amount, without liability to ***, upon any one of the following events, which are an act of default..1 The appointment of a receiver of the ***, or of all or any substantial part of its property, and the failure of such receiver to be discharged within sixty (60) days thereafter..2 The adjudication of *** as bankrupt..3 The filing by *** of a petition or an answer seeking bankruptcy, receivership, reorganization, or admitting the material allegations of a petition filed against it in any bankruptcy or reorganization proceeding..4 The default by *** in the payment of any debt against its property. V. REPORTING AND MONITORING 5.1 ***, during normal business hours, at its location in Cuero, Texas, shall allow Cuero Development Corporation reasonable access to the location of the project to verify that *** has complied with the conditions precedent or set forth herein. VI. CUERO DEVELOPMENT CORPORATION S LIABILITY LIMITATIONS 6.1 *** specifically agrees that Cuero Development Corporation shall only be liable to *** for the Contract Amount and shall not be liable to *** for any other actual or consequential damages, direct or indirect, interest, attorney fees, or cost of court for any act of default by Cuero Development Corporation under the terms of this agreement. It is further specifically agreed that Cuero Development Corporation shall only be required to pay the Contract Amount solely out of its sales tax revenue currently collected, allocated and budgeted. VII. GENERAL TERMS 7.1 Entire Agreement: This agreement embodies the complete agreement of the parties hereto, superseding all oral or written, previous and contemporary, agreements between the parties relating to matters in this agreement; and, except as otherwise provided herein, this agreement cannot be modified or amended without a written agreement of the parties. 7.2 Legal Relationships: No term or provision of this agreement or act of *** in the performance of this agreement shall be construed as making Cuero Development Corporation, or its employees, the agent, servant, employee or contractor of *** or shall create a partnership with Cuero Development Corporation. The City of Cuero is a third party beneficiary, and not a direct party to this agreement. 4

5 7.3 Assignment: This agreement shall be binding upon the parties hereto and their successors and assigns. However, this agreement may not be assigned by either party without the specific prior written consent of the other, which consent will not be unreasonably withheld. 7.4 Representation: *** represents that no Cuero Development Corporation board member or employee, City of Cuero officer or employee, has been or will be compensated in any manner with respect to directly or indirectly bringing the parties hereto together, agreement, negotiations, or the entering into of this agreement. In no event will *** pay a fee to or in any other manner compensate any Cuero Development Corporation board member or employee, City of Cuero, officer or employee, in connection with the acceptance of this agreement. A breach of this Provision (10.9) shall result in automatic and immediate termination of this agreement, and shall be an act of default by Cuero Development Corporation. 7.5 Term: This agreement becomes effective on, herein after described as the effective date, and shall terminate on the earlier of:, when the requirements set forth in this agreement are completed, when terminated by mutual agreement of the parties, or when terminated as hereinabove provided. All representations, warranties, covenants and agreements of the parties, as well as any rights and benefits of the parties pertaining to the transaction contemplated hereby, shall survive the original execution date of this agreement. 7.6 Forum Selection: This agreement and the relationship between Cuero Development Corporation and *** shall be governed and interpreted under the laws of Texas without regard to any conflict of laws provision. Venue for any suit arising out of any relationship between Cuero Development Corporation and *** shall be the appropriate court in DeWitt County, Cuero, Texas. *** consents to, and waives any objections to, in personum jurisdiction in DeWitt County, Texas. 7.7 Legal Construction: In case one or more of the provisions contained in this agreement shall for any reason be held invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions hereof, and this agreement shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein. EXECUTED on the date shown opposite the signature of each party. CUERO DEVELOPMENT CORPORATION (CORPORATE SEAL) By: Name: Title: *** By: Name: Title: 5

6 Exhibit B STATE OF TEXAS * COUNTY OF DEWITT * CONDITION OF RECEIPT OF PUBLIC SUBSIDIES/AGREEMENT REGARDING REPAYMENT OF INTEREST WHEREAS has submitted an application to Receive a public subsidy as defined in Chapter 2264, Texas Government Code (hereinafter the Code ); and WHEREAS has certified in said application that neither said business, nor a branch, division or department of said business knowingly employs or will hereafter knowingly employ an undocumented worker (as defined in the Code); and WHEREAS the Code stated that if any business, or a branch, division, or department of the business, after receiving a public subsidy, is convicted of a violation under 8 U.S.C., Section 1324(f), the business shall be required to repay the amount of the public subsidy with interest; and WHEREAS the Code requires that as a condition precedent to CUERO DEVELOPMENT CORPORATION s providing such public subsidy, CUERO DEVELOPMENT CORPORATION and must enter into a written agreement specifying the rate and terms of the payment of interest if is required to repay the public subsidy. NOW THEREFORE KNOW ALL MEN BY THESE PRESENTS THAT CUERO DEVELOPMENT CORPORATION and hereby agree that if, after receiving a public subsidy from CUERO DEVELOPMENT CORPORATION,, or a branch, division, or department of is convicted of a violation of 8 U.S.C., Section 1324(f), that shall repay the amount of the public subsidy together with interest at the rate of twelve (12) percent per annum, such interest to begin accruing on the date of such conviction and to continue until all sums owed under this agreement are paid. Such repayment plus said interest shall be due and payable not later than the 120 th day after the date that the CUERO DEVELOPMENT CORPORATION notifies of the conviction. Interest on the public subsidy as referenced above shall not exceed the maximum amount of nonusurious interest that may be contracted for, taken, reserved, charged, or received under law; any interest in excess of that maximum amount shall be credited on the repayment or, if that has been paid, refunded. All payments due under this document shall be payable in Cuero, DeWitt County. In the event that a civil action is brought by a public agency, local taxing jurisdiction, the CUERO DEVELOPMENT CORPORATION or the Texas Attorney General to recover any amounts owed to the CUERO DEVELOPMENT CORPORATION under the Code and this agreement, the said party shall also be 6

7 entitled to recover from, all court costs and reasonable attorney s fees incurred in such action. CUERO DEVELOPMENT CORPORATION By: Printed Name: Title: President : By: Printed Name: Title: : INSERT ACKNOWLEDGEMENTS 7

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