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ORDINANCE NO. 2008-11-01 AN ORDINANCE AUTHORIZING THE ISSUANCE OF INDUSTRIAL DEVELOPMENT REVENUE BONDS TO FINANCE CERTAIN INDUSTRIAL FACILITIES; AUTHORIZING THE LEASING OF SUCH FACILITIES TO SCROLL COMPRESSORS LLC; AUTHORIZING A TRUST INDENTURE SECURING THE BONDS; AUTHORIZING THE SALE OF THE BONDS; AUTHORIZING AND PRESCRIBING OTHER MATTERS PERTAINING THERETO; AND DECLARING AN EMERGENCY. WHEREAS, the City of Batesville, Arkansas (the "City"), is authorized and empowered under the provisions of Title 14, Chapter 164, Subchapter 2 of the Arkansas Code of 1987 Annotated (the "Act'), to issue revenue bonds and to expend the proceeds thereof to finance the acquisition, construction and equipment of land, buildings or facilities which can be used in securing or developing industry; and WHEREAS, Scroll Compressors LLC, a Delaware limited liability company (the "Company"), proposes to acquire, construct and equip certain industrial facilities (the "Project'), generally consisting of the renovation and expansion of an existing industrial facility, including related machinery, equipment and other personal property, located in Batesville, Arkansas; and WHEREAS, it is proposed that the City issue its revenue bonds underthe Act for the purpose of financing the cost of the Project and the expenses of issuing such bonds; and WHEREAS, pursuant to and in accordance with applicable provisions of Arkansas law, a public hearing was held on the date hereof before the City Council on the question of the issuance of such revenue bonds under the Act; and WHEREAS, after due consideration the City has determined to proceed with financing the Project and to issue and sell its revenue bonds under the provisions of the Act in the aggregate principal amount of not to exceed $100,000,000 (the "Bonds"), and in connection therewith to enter into a Trust Indenture (the"Indenture"), between the City and Regions Bank, Little Rock, Arkansas, as Trustee (the "Trustee"), to secure the Bonds; and WHEREAS, the Project will be leased by the City to the Company pursuant to the provisions of a Lease Agreement (the "Lease Agreement'), between the City and the Company; and WHEREAS, the Company will enter into an Agreement for Payments in Lieu of Taxes (the "PILOT Agreement") with the City as hereinafter provided; and WHEREAS, copies of the Indenture, the Lease Agreement, and the PILOT Agreement have been presented to and are before this meeting; NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Batesville, Arkansas: Section 1. The City Council hereby finds that the accomplishment of the Project, and the issuance of the Bonds to finance the same, will provide substantial