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Exhibit 10 (mm)
STATE OF SOUTH DAKOTA
BOARD OF ECONOMIC DEVELOPMENT
REVOLVING ECONOMIC DEVELOPMENT AND INITIATIVE FUND
(ARSD 68:02:01)
EMPLOYMENT AGREEMENT
REDI LOAN NUMBER 02-18-A
EMPLOYMENT AGREEMENT, made and entered into this 19th day of
December,
2002, by and between the State of South
Dakota, Board of Economic Development,
711 Wells Avenue, Pierre, South Dakota
57501 (herein "BED"), and M-tron
Industries, Inc., of 100 Douglas Avenue,
Yankton, South Dakota 57078 (herein the
"Borrower").
WHEREAS, M-tron Industries, Inc., (the "Borrower") made an
application
(the "Application") dated September 20,
2002, to BED for a loan from the
Revolving Economic Development and
Initiative Fund (REDI), for the purposes of
Borrower's business expansion or relocation
in the State of South Dakota (the
"Project"), as described with particularity
in the Application and the BED Loan
Documents, which are by this reference
incorporated herein; and,
WHEREAS, the Application was approved by BED and the Borrower and
BED
entered into a certain Revolving Economic
Development and Initiative Fund (REDI)
Loan Agreement dated the 19th day of
December, 2002, (the "Loan Agreement"),
whereby BED loaned to Borrower from the
REDI Fund the sum of $296,000, together
with interest thereon at 3% per annum, due
and payable as set forth in the
Promissory Note of even date, all pursuant
to SDCL Chapter 1-33 and 1-16G, as
amended, and ARSD Article 68:02 (the"BED
Loan"); and,
WHEREAS, the BED Loan accrues interest at the rate of three percent
per
annum, which interest rate is below the
prevailing rate available from
commercial lending institutions at the time
the BED Loan was made; and,
WHEREAS, part of the inducement and consideration for BED to make
said
BED Loan to Borrower is the Project's
creation of employment opportunities for
South Dakota citizens, as set forth in the
projections made by Borrower in the
Application; and,
WHEREAS, failure of Borrower to meet the projections in the
Application
will constitute a failure of consideration,
and a default under the terms and
conditions of this Employment Agreement,
the Loan Agreement, Promissory Note,
and other Loan Documents executed by
Borrower and BED in connection with this
Application, BED Loan, and Project, all of
which documents are incorporated by
reference herein;
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NOW, THEREFORE IT IS MUTUALLY AGREED AS FOLLOWS:
1. The parties specifically agree that due to the nature of the
consideration for the BED Loan to the
Borrower it is impracticable or extremely
difficult to fix the actual damages
resulting from the
