Document:

Exhibit 10.1

MEMORANDUM
OF UNDERSTANDING

BY
AND AMONG

PACCAR
ENGINE COMPANY,

THE
STATE OF MISSISSIPPI

AND

CERTAIN
STATE AND LOCAL SUPPORTING

GOVERNMENTAL ENTITIES

MEMORANDUM OF UNDERSTANDING

This Memorandum of Understanding, (the “MOU”),
dated as of May 11, 2007, (the “Effective Date”) by and among the State
of Mississippi (the “State”), the Mississippi
Development Authority (the “MDA”), the Mississippi Major Economic
Impact Authority (the “MMEIA”), together with MDA, acting for and on
behalf of the State, the Mississippi Department of Environmental Quality (the “MDEQ”),
the Mississippi Department of Employment Security (the “MDES”), Lowndes
County, Mississippi (the “County”), the Lowndes County Industrial
Development Authority (the “LCIDA), Oktibbeha County, Mississippi (“Oktibbeha
County”), and East Mississippi Community College (the “EMCC”),
(collectively the “Inducers”) and PACCAR Engine Company, a Mississippi
corporation, and its permitted successors and assigns hereunder (the “Company”)  (all of the foregoing being collectively the “Parties”).

RECITALS

WHEREAS, the Company
contemplates the establishment of an industrial plant in the Southeast United
States for the purpose of manufacturing and assembling engines and components
thereof which is estimated to employ at least Five Hundred (500) full-time
employees requiring an initial investment of at least Three Hundred Million
Dollars ($300,000,000.00); and

WHEREAS, the Inducers are
desirous of having the Company locate the Project in the County and State; and

WHEREAS, the Inducers and the
Company have determined that a portion of the Crossroads Megasite in Lowndes
County, Mississippi is suitable for the Project; and

WHEREAS, the Inducers recognize
that the Company is considering and is capable of locating the Project in other
states and desire to induce the Company to locate the Project on a portion of
the Crossroads Megasite for the benefit of the State and the County and have
made specific proposals and inducements to the Company for the purpose of
inducing the Company to locate the Project in the County; and

WHEREAS, the Inducers have
determined that the economic incentives identified in this MOU will meet a
public purpose in providing job opportunities for the citizens of the County
and the State and in generating additional tax revenues to be used to meet
public needs; and

WHEREAS, the
Company has determined that the inducements and incentives as set out in this MOU
are sufficient to induce the Company to locate the Project in Mississippi; and

WHEREAS, the
Company and the Inducers are desirous of having such proposals and inducements
set forth in a valid, binding and enforceable agreement in order to create a
working relationship between them; and

WHEREAS, on the Effective Date,
the agreements contained in this MOU for which the Company and each Inducer is
designated as responsible shall become the legally binding obligations of the
Company and the Inducers for and in consideration of the Company’s decision to
locate the Project within the State and for and in consideration of the
Inducers’ incentives provided herein.

NOW, THEREFORE, for and in
consideration of the premises and the mutual covenants, promises and agreements
herein contained, and other good and valuable consideration, the Parties agree
as follows:

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ARTICLE I

ENABLING LEGISLATION

1.01                           Special
Statutory Authorization for Project Support

On April 27,  2007, the Mississippi
Legislature passed the following:

(a)                                  Senate
Bill 2001, First Extraordinary Session;

(b)                                 Senate
Bill 2002, First Extraordinary Session; and

(c)                                  Senate
Bill 2003, First Extraordinary Session.

(collectively the “Enabling
Legislation”).

ARTICLE II

THE COMPANY’S COMMITMENTS

2.01                           Company
Commitments

For and in
consideration of the commitments of each of the Inducers as expressed herein,
the Company agrees to locate the Project as defined in Section 57-75-5(f)(xxii)
of the Mississippi Code on real estate located in the County, as more
particularly set forth in Exhibit A
attached hereto and incorporated herein by reference (the “Project Site”),and:

(a)                                  to
begin construction of the Project after the Effective Date and not later than
December 1, 2007; and

(b)                                 to
make an initial capital investment in the Project from private sources of not
less than Three Hundred Million Dollars ($300,000,000.00), no later than
December 31, 2010 (the “Investment Commitment”); and

(c)                                  to
create and maintain for a period of ten (10) years at least five hundred (500)
new full-time jobs, each eligible job consisting of an employee of the Company
working on the Project Site a minimum of thirty-five (35) hours per week, and

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meeting reasonable
criteria established by MMEIA, which criteria shall include, but not be limited
to, the requirement that such jobs must be held by persons eligible for
employment in the United States under applicable state and federal law, and the
requirement that the average annual wage and taxable benefits of such jobs
shall be at least one hundred twenty-five percent (125%) of the most recently
published average annual wage of the State or the most recently published
average annual wage of  the County as
determined by the MDES, whichever is the lesser (the “Jobs”), no later than
December 31, 2013 (the “Jobs Commitment”).

ARTICLE III

THE STATE’S COMMITMENTS

3.01                           State
Expenditures in Support of the Project

The State acting
through MDA and MMEIA agrees to provide funds for the Project in the total
amount not to exceed Forty-Eight Million One Hundred Thousand Dollars
($48,100,000.00) to be used as follows:

(a)                                  to
timely reimburse the County in an amount not to exceed Two Million Six Hundred
Thousand Dollars ($2,600,000.00) for the actual costs incurred for water and
sewer infrastructure required by the Company for the Project; and

(b)                                 to
timely reimburse the County in an amount not to exceed Five Million Dollars
($5,000,000.00) for the construction of all necessary road access improvements
required by the Company for the Project, including, but not limited to the
following:

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(i)                                     the
construction of a new 4,800 linear foot, four-lane, industrial park access road
(the “New Access Road”), which shall be built to standards required by
the Mississippi Department of Transportation (“MDOT”); and

(ii)                                  the
construction of a new 7,400 linear foot, on-site, two-lane road acceptable to
the Company; and

(iii)                               the
installation of traffic signalization at the intersection of the expanded
Airport Road and the New Access Road; and

(iv)                              the
installation of traffic signalization at the intersection of the South Highway
82 frontage road and the expanded Airport Road; and

(v)                                 the
construction of a deceleration lane on the southbound expanded Airport Road at
the intersection of Airport Road and the New Access Road; and

(vi)                              the
acquisition of all necessary right-of-way for the above improvements;

the foregoing improvements to be completed no later
than July 1, 2008; and

(c)                                  to
timely reimburse the Company in an amount not to exceed Fifteen Million Two
Hundred Thousand Dollars ($15,200,000.00) (which amount includes Six Million
Dollars ($6,000,000.00) to be available as a contingency fund (the “Contingency
Fund”) for costs overruns or unexpected but necessary and reasonable expenses),
for the actual costs incurred for reasonable and necessary site preparation,
including but not limited to, earthwork, paving, and a temporary construction
road for the Project, all as determined in the reasonable discretion of the
Company, subject to Section 3.07 below; and

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(d)                                 to
timely reimburse the Company in an amount not to exceed Eight Hundred Thousand
Dollars ($800,000.00), for the actual costs incurred for construction of all
necessary on-site fire protection needs for the Project; and

(e)                                  to
timely reimburse the Company in an amount not to exceed Three Million Five
Hundred Thousand Dollars ($3,500,000.00), for the actual costs incurred for an
on-site wastewater pretreatment facility for the Project; and

(f)                                    to
timely provide for training support funds as follows:

(i)                                     to
reimburse the Company in an amount not to exceed Sixteen Million Dollars
($16,000,000.00) for training at an average rate of Twenty Thousand Dollars
($20,000.00) per employee; and

(ii)                                  to
provide funding to the Company in an amount not to exceed Four Million Dollars
($4,000,000.00) for an on-site training facility and related equipment, to be
constructed and equipped by the Company at the Project Site; and

(iii)                               to
provide funding to the Company in an amount not to exceed One Million Dollars
($1,000,000.00) for training equipment to be located at a local educational
facility to be selected by the Company.

3.02                           Mechanics
for Disbursement of Infrastructure Costs

Reimbursement for
the infrastructure costs identified in Sections 3.01(c) through 3.01(e) will be
made upon submission by the Company of a requisition (upon which the State may
rely conclusively), signed by an authorized representative of the Company,
which shall include:

(a)                                  the
requisition number;

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(b)                                 a
copy of each invoice for which reimbursement is requested;

(c)                                  a
summary of the amount of the reimbursement to be paid to the Company;

(d)                                 verification
that each obligation, item of cost or expense mentioned therein has been
properly incurred, is a proper expense for which reimbursement may be granted,
and has not been the basis of any previous reimbursement; and

(e)                                  verification
that the Company has previously spent the entire amount for which reimbursement
is being sought for infrastructure costs.

3.03                           Reimbursement
Procedures for Training Funds

Reimbursements for
the costs identified in Section 3.01(f) will be made in a timely manner upon
submission by the Company of a
training expense form for each employee
for whom reimbursement is
requested, including any related travel documentation for which reimbursement
is sought, meals, lodging,
airfare, mileage, car rental, fuel, parking fees, and other miscellaneous
expenses with the total amount of reimbursement requested set forth.  MDA and the Company will work together to
develop and/or modify the forms and documentation procedures for the
reimbursements under this Section 3.03.

3.04                           Community
Development Block Grant Funds

MDA will make
available Katrina Supplemental or other Community Development Block Grant (“CDBG”)
funds to Oktibbeha County, upon proper application and approval, in an amount
not to exceed Five Hundred Thousand Dollars ($500,000.00) for the actual costs
incurred for public infrastructure in the Mississippi State University Research
Park (the “MSU Research Park”) required by the Company.

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3.05                           Relocation
and Infrastructure Grant

MDA will, upon
request by the Company, timely make available to Oktibbeha County, upon proper
application and approval, Two Hundred Thousand Dollars ($200,000.00) for use by
the Company in its sole discretion for:

(a)                                  reimbursement
of relocation expenditures of the Company, and/or

(b)                                 public
infrastructure at Mississippi State University Research Park.

3.06                           Gulf
Opportunity Zone Volume Cap Allocation

The State of
Mississippi will provide to the Company Three Hundred Million Dollars
($300,000,000.00) in tax-exempt bond allocation under the State’s additional
Gulf Opportunity Zone Act of 2005 volume cap allocation to assist with
financing of the Project.

3.07                           Disbursement

Disbursement of
all funds listed above will be subject to a timely finding by MDA that the
expenses were reasonable and necessary for the construction and operation of
the Project.  By mutual agreement of the
State, the County and the Company, Katrina Supplemental or other CDBG funds may
be used for eligible expenses of the Project and the amount of State Bond funds
will be reduced by that amount.

3.08                           Reallocation
of Funds

If the full
amount(s) specified for an expenditure listed in Sections 3.01(a) through
3.01(e), above, is not required therefor, MDA and MMEIA agree, upon request by
the Company, to reallocate such unused amount(s) to any one or more other
purposes described in Sections 3.01(a) through 3.01(e), above, which cost(s)
have exceeded or are expected to exceed the amount(s) provided for in said
Section, provided, however, that 

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the Contingency
Fund provided for in Section 3.01(c) shall not be subject to such reallocation..

3.09                           Timing
of Reimbursements

The State will
endeavor to pay each such requisition within thirty (30) days of receipt and
will pay the same within forty-five (45) days of receipt.  However, the State will not be required to
make the first reimbursement payment prior to August 31, 2007.

3.10                           State
Purchases

The State will
continue to follow all existing state purchasing laws, in accordance with the
Mississippi Code of 1972, as amended, including, but not limited to, the State’s
statutory preference in favor of items manufactured in the State, including the
Company’s products manufactured in the State, pursuant to Section 31-7-15
of the Mississippi Code.

3.11                           Environmental
Permitting

MDEQ agrees to
expedite issuance of all permits required for the Project to the extent allowed
by applicable law and regulation, upon timely receipt of completed permit
applications.

3.12                           Property
Tax Legislation

The State will seek passage of legislation which would
allow for a period of twenty (20) years from the date of passage of such
legislation ad valorem tax exemptions available under current law for suppliers
of the Company to be located in the County for respective periods of ten (10)
years upon the submission by each supplier of proper and timely applications
under Mississippi law; and to timely approve such ad valorem tax exemptions;

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3.13                           Overseeing
Fulfillment of Commitments

Although specific
commitments to the Company set forth in this MOU have been made by each of the
respective Inducers, the State acknowledges that, acting through MDA and MMEIA,
the State has worked to facilitate all such commitments and agreements as a
comprehensive incentive package designed to induce the Company to locate the
Project within the State and, without limiting the liability of each such
Inducer pursuant to their respective agreements herein, the State, acting
through MDA and MMEIA, agrees to oversee the due performance by each such
Inducer of each and every commitment or agreement made by them to or with the
Company as provided in this MOU.  Each
Inducer other than the State agrees that if such Inducer does not perform its
respective obligations hereunder, the State may, at its sole option, and to the
fullest extent allowed by law, perform or cause to be performed the obligations
of such Inducer, utilizing any funds available to such Inducer hereunder.

3.14                           Requirements

All of the incentives in this ARTICLE III are subject
to proper and complete applications, and satisfaction of all statutory
requirements, rules and regulations of programs and execution of separate
agreements as may be reasonably required.

ARTICLE IV

THE COUNTY’S COMMITMENTS

4.01                           County
Commitments

In consideration of the Company’s commitments set out
in ARTICLE II, the County and/or the LCIDA, as applicable, commit to:

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(a)                                  Convey
to the Company, at no cost, by warranty deed through the LCIDA, no later than
September 30, 2007, good, marketable and indefeasible fee simple title to the
Project Site, which shall be free of any exceptions or encumbrances other than
the encumbrances and exceptions specifically listed and described on Exhibit B attached hereto (the “Permitted
Encumbrances”), together with all necessary easements benefiting the
Project Site, with sole and exclusive possession of the Project Site to be
delivered no later than five (5) working days from the Effective Date, in accordance
with Section 4.02 below; and

(b)                                 Provide
to the Company on or before the Effective Date, an ALTA Survey of the Project
Site in form and substance satisfactory to the Company; and

(c)                                  Provide
to the Company on the date of conveyance a policy of title insurance to be
issued by First American Title Insurance Company or Fidelity National Title
Insurance Company, in a form and with endorsements satisfactory to the Company,
insuring title to the Project Site in the amount of the acquisition cost of the
Project Site (but not less than $7,800,000), which policy shall be endorsable
up to the full value of the Project upon completion; and

(d)                                 Timely
exercise the power of eminent domain provided by the Enabling Legislation, if
determined necessary by the Company, for (1) any portion of the surface
estate of the Project Site to which good, marketable and indefeasible fee
simple title cannot be conveyed to the Company, in the Company’s sole opinion,
on or before September 30, 2007, and (2) the acquisition of severed
mineral interests including existing mineral leases in order to avoid
interference with or damage to the Project, or alternatively (i) to
provide amendments to existing

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mineral leases
acceptable to the Company which protect the surface of the Project Site from
any mineral exploration activities through surface non-use agreements with all
mineral lessees, and (ii) to provide the Company with ownership of all
mineral interests subject only to bonus and royalty interest reservations; and

(e)                                  Adopt
and enforce in Lowndes County, within and without the Project Site as
necessary, all necessary and reasonable rules and regulations and restrictions
to carry out and effectuate the implementation of the Project concerning mining
or any other activity the occurrence of which may endanger the structure or
operation of the Project; and

(f)                                    Timely
provide One Million Eight Hundred Thirty Thousand Dollars ($1,830,000.00) to
the 4-County Electric Power Association for electrical infrastructure
improvements for the direct benefit of the Project which improvements will be
subject to the prior approval of the Company; and

(g)                                 Authorize,
make appropriate application to the State for, and take all other steps
necessary, in a timely manner, to cause all Katrina Supplemental or other CDBG
funds referenced in Sections 3.04 and 3.05 to be fully available for use as
required by the Company; and

(h)                                 At
the option of the Company, build a temporary construction road from Highway 82
frontage road to the Project Site as described in Section 3.01(c), at a
location approved by the Company, which road shall be completed no later than
July 1, 2007;

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(i)                                     Undertake
and complete all right-of-way acquisition, road construction, and traffic
signalization work described in Section 3.01(b), above, all of which shall be
completed no later than July 1, 2008;

(j)                                     Take
all actions necessary to vacate and abandon that portion of Raymond Road, a
dedicated County road, located on the Project Site, and to cause good,
marketable and indefeasible fee simple title to such portion of Raymond Road to
be vested in the Company no later than September 30, 2007;

(k)                                  Provide
adequate, temporary potable water to the Project Site no later than July 1,
2007; and

(l)                                     Provide
adequate, permanent potable water and sewer to the on-site central utilities
building no later than July 1, 2008; and

(m)                               Provide
adequate, permanent natural gas service to the on-site central utilities
building no later than July 1, 2008; and

(n)                                 Pay
in a timely manner all tap and meter fees associated with providing adequate
temporary or permanent water, sewer, and natural gas service to the Project;
and

(o)                                 Provide
to the Company on or prior to the Effective Date, a completed Phase I
Environmental Site Assessment (the “ESA”) of the Project Site, an audit
relative to the findings of the ESA, and, prior to the conveyance of the
Project Site, appropriate warranties, acceptable to the Company, protecting the
Company against any and all pre-existing environmental conditions; and

(p)                                 Provide
to the Company on or prior to the Effective Date, a completed
historical/cultural resources audit and survey by the Mississippi Department of
Archives and History regarding the Project Site and, prior to the conveyance of

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the Project Site,
appropriate warranties regarding the absence of historical/cultural resources;
and

(q)                                 Provide
to the Company on or prior to the Effective Date, completed endangered species
surveys of the Project Site; the determination of the U.S. Fish and Wildlife
Service that no endangered or threatened species will be affected by the
Project; and, prior to the conveyance of the Project Site, appropriate
warranties regarding the absence of endangered or threatened species; and

(r)                                    Remediate
any conditions as described in Sections 4.01(o) through 4.01(q) above, to the
Company’s satisfaction, at no cost to the Company, and in a timely manner; and

(s)                                  On
or prior to the Effective Date, provide an audit on all matters relating to the
jurisdictional wetland areas on the Project Site and secure the transferable
Section 404 Individual Wetlands Permit; and subsequently remediate or mitigate
any impacted wetland areas, provided, however, that the cost of such
remediation or mitigation shall not exceed the sum of One Hundred Fifty
Thousand Dollars ($150,000.00); and

(t)                                    Assess
or impose no special levies in the nature of taxes, franchise fees or other
special assessments against the Company or the Project (which are not imposed
against all taxpayers generally) for a period of thirty (30) years;

(u)                                 Seek
passage of legislation which would allow for a period of twenty (20) years from
the date of passage of such legislation ad valorem tax exemptions available
under current law for suppliers of the Company to be located in the County for
respective periods of ten (10) years upon the submission by each supplier of

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proper and timely
applications under Mississippi law; and to timely approve such ad valorem tax
exemptions;

(v)                                 Cause
any existing “blanket” utility easements pertaining to the Project Site to be
extinguished and replaced with easements which specifically describe the
pertinent utility easements, which shall be underground at any locations
requested by the Company, and to furthermore obtain adequate water/sewer
easements from the appropriate county provider of such services at locations
identified by the Company; and

(w)                               Provide
such other commitments and undertakings as may be reasonably required to insure
that the intent and purposes of the foregoing are realized.

4.02                           Interim
Lease of Project Site

In consideration
of the mutual and reciprocal covenants and agreements contained in this MOU,
effective immediately upon the LCIDA’s acquisition of the Project Site (the “Lease
Commencement Date”), the LCIDA hereby leases the Project Site to the
Company.  The Lease Commencement Date
shall occur not later than five (5) business days following the Effective
Date.  The term of the leasehold estate
created by this Section 4.02 (the “Lease”) shall commence on the Lease
Commencement Date and shall continue in full force and effect until the
conveyance by the LCIDA to the Company of good, marketable and indefeasible fee
simple title to the Project Site, free and clear of all liens and encumbrances,
other than the Permitted Encumbrances. 
This Lease shall be deemed to vest in the Company an exclusive leasehold
estate in and to, and sole and exclusive possession of the Project Site.  The County and the LCIDA hereby agree that
from and after the Lease Commencement Date, the Company shall be entitled to
(a) take

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any actions, make any
alterations to, conduct any activities on, and construct or demolish any
improvements on the Project Site as the Company may deem necessary or desirable
in its sole discretion, to the same extent as if the Company were the sole, fee
owner of the Project Site; and (b) record a Memorandum of Lease evidencing this
Lease, which Memorandum shall be executed by the County and the LCIDA in the
form attached hereto as Exhibit C,
upon request by the Company.

4.03                           Project
Site Financing

The parties
acknowledge that the LCIDA will issue its negotiable note in the amount of
$10,000,000 to pay for acquisition of the Project Site and to fund other
incentives to be provided by the County hereunder.  The County agrees to timely issue its general
obligation bonds, as authorized by the Enabling Legislation, to repay the LCIDA’s
note and to fund the County’s other obligations hereunder.

4.04                           Commitments
of Oktibbeha County

Oktibbeha County hereby
agrees:

(a)                                  upon
request from the Company to make and timely prosecute any and all applications
for Katrina Supplemental or other CDBG funds as may be required in order to
accommodate and implement such portion of the relocation and infrastructure
grants provided for in Sections 3.04 and 3.05 above, as may be applicable to
Oktibbeha County; and

(b)                                 to
purchase and convey to the Company at no cost, upon request by the Company, up
to two (2) acres of land in phase 1 or phase 2 of the MSU Research Park, which
land shall be selected by the Company.

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ARTICLE V

TRAINING ASSISTANCE

5.01                           General

The State, acting
through MMEIA, MDES and EMCC, in addition to the training funds provided for in
Section 3.01(f), agrees to assist the Company in recruiting and training a
quality workforce.

5.02                           Workforce
Education Program

EMCC agrees to
offer the Company the workforce screening and training services provided under
the Workforce Education Program as follows:

(a)                                  Pre-employment
training at no cost to the Company;

(b)                                 Customized
training program in specific skill agreed at a negotiated shared cost; and

(c)                                  Supervision
and management training for first time or experienced supervisors and other
mutually agreed soft skill training at a negotiated shared cost.

5.03                           Recruitment
Services

In addition to and
not in lieu of all other inducements provided hereunder by Inducers, MDES
agrees to provide, at no cost to the Company, recruitment and prescreening
services.

5.04                           Workforce
Investment Network

In addition to and
not in lieu of all other inducements to be provided hereunder by Inducers, the
State and MDES will offer to the Company, through Mississippi’s network of
Workforce Investment Network (WIN) Job Centers, the employer services and
benefits normally offered as part of the WIN program, at no cost to the
Company.

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5.05                           Separate
Funds

The costs
referenced in this ARTICLE V are not to be provided from the training support
funds designated in Section 3.01(f).

ARTICLE VI

TAX INCENTIVES

Pursuant to existing law and the authority granted in
the Enabling Legislation and other applicable law, the State and the County, as
applicable, agree to provide the Company the tax incentives set forth in this
ARTICLE VI (the “Tax Incentives”).

6.01                           Income
Tax Incentives

The Enabling
Legislation granted an expanded Jobs Tax Credit against Mississippi income tax
of Five Thousand Dollars ($5,000.00) per Job for a period of twenty (20) years
(the “Income Tax Credit”).  The
Income Tax Credit shall apply to the total Mississippi income taxes imposed on
the income of the Company.  The Company
may elect the date upon which the twenty (20) year period will begin (the “Commencement
Date”).  The Commencement Date shall
not be earlier than the date on which the Company achieves the Jobs Commitment
nor more than seventy-two (72) months from the commencement of manufacturing
production.  The Income Tax Credit shall
apply for twenty (20) consecutive years including the taxable year in which the
Commencement Date occurs.  At any point
within the twenty (20) year period that the average annual number of Jobs falls
below five hundred (500), no credit will be generated until the average annual
number of Jobs reaches five hundred (500). 
Any unused credits may be carried forward for up to five (5) years to
apply to future Mississippi income tax liability.

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6.02                           Franchise Tax Incentives

The State agrees
to enter into a franchise tax fee-in-lieu or similar agreement with the Company
by which Twenty-Five Thousand Dollars ($25,000.00) annually shall be paid by
the Company in Mississippi franchise taxes on the Project for a term of twenty
(20) years.  The twenty (20) year period
of the franchise tax fee-in-lieu agreement shall commence in the first taxable
year in which the franchise tax liability attributable to the Project exceeds
Twenty-Five Thousand Dollars ($25,000.00).

6.03                           Sales
and Use Tax Incentives

Pursuant to the
authority granted in the Enabling Legislation, the Company shall receive

(a)                                  an
exemption from sales and use taxes for purchases and leases to establish and
operate the Project, including

(i)                                     all
payments and purchases required to establish the Project, including, but not
necessarily limited to, sales of component building materials, machinery, and
equipment required to establish the Project and any additions or improvements
thereon, and

(ii)                                  the
revenue derived from any lease required to establish or operate the Project or
any portion thereof and

(b)                                 an
exemption from sales and use tax for machinery, special tools (such as dies,
molds, and jigs) or repair parts thereof, or replacements and lease thereof,
repair services thereon, fuel, supplies and electricity, coal and natural gas
purchased by a manufacturer and assembler of engines and components thereof.

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6.04                           Withholding
Tax Rebate

The State agrees
to grant withholding tax rebates as provided in Sections 14 and 15 of the
Enabling Legislation  (the “Rebate
Program”).  Under the Rebate Program,
the Company will receive quarterly incentive payments for a period not to
exceed twenty (20) years from the State Tax Commission in an amount which shall
be equal to the lesser of three and one-half percent (3.5%) of the wages and
taxable benefits for Jobs or the actual amount of Mississippi income tax
withheld by the Company for the Jobs. 
The Company may elect the date upon which the twenty (20) year period
will begin (the “Rebate Commencement Date”).  Such date may not be earlier than the date on
which the Company achieves the Jobs Commitment and not later than seventy-two
(72) months after the date the Company applies for the incentive payments.  After the Rebate Commencement Date, the
Company shall be eligible to receive quarterly incentive payments for the
twenty (20) year qualifying period, beginning the fifth quarter after the
Company meets all Rebate Program requirements. 
In any quarter within the twenty (20) year period in which the number of
Jobs falls below the Jobs Commitment, the rebate will not be paid.  However, the rebate will be payable in any
quarter thereafter during which the Company meets the Jobs Commitment.

6.05                           Property
Tax Incentives

(a)                                  Pursuant
to Mississippi Code Section 27-31-104, the County agrees to enter into a
fee-in-lieu agreement with the Company and MDA agrees to approve and consent to
said agreement, providing for a fee-in-lieu of all ad valorem taxes otherwise
payable by the Company with taxable property in Lowndes County related to the
Project in an amount equal to the greater of 

 20
 

(i)                                     One
Million Three Hundred Sixty Thousand Dollars ($1,360,000.00) or 

(ii)                                  one-third
(1/3) of the ad valorem levy for the Project, including school taxes, 

for the initial ten (10) years of a thirty (30) year
period.  After the initial ten (10) year period, the fee-in-lieu amount
will be one-third (1/3) of the ad valorem levy for the Project, including
school taxes.  After each piece of
property has been subject to the fee in lieu for 10 years it will be placed on
the tax rolls at its depreciated value. 
Under no circumstance shall any portion of the real estate or equipment
be eligible for fee-in-lieu for a period of more than 10 years. The specifics of
said fee-in-lieu agreement outlining the responsibilities and obligations of
all parties shall include details to protect the County’s initial
investment.  The first fee-in-lieu
payment will be due February 1, 2010.

(b)                                 The
County agrees to grant, upon the Company’s submission of a timely application,
a perpetual Freeport Warehouse exemption pursuant to Mississippi Code Section
27-31-51, et seq. exempting from all ad valorem
tax all finished goods that are exported from the State.  

6.06                           All
of the incentives listed above are subject to proper and complete applications,
and satisfaction of all statutory requirements, rules and regulations of
programs and execution of separate agreements as required.

ARTICLE VII

EQUIVALENT INCENTIVES

In the event that the Constitution or laws of the
United States or State of Mississippi limit the ability of an Inducer to
perform its commitments hereunder in any way, then such Inducer

 21
 

shall work with the
Company to identify and provide to the Company a substitute incentive of equal
economic value and, to the extent necessary, such Inducer will make a good
faith effort to seek and obtain appropriate legislation or other appropriate
action to allow performance hereunder or with respect to a substitute incentive
of equal economic value.

ARTICLE VIII

PERMITS AND LICENSES

8.01                           Building
Permits

The County
operates under the 1997 Southern Building Code. 
The Project will require a building permit, which will be issued in a
timely manner by the County Building Inspector’s office, at no cost to the
Company, upon receipt of the appropriate information and drawings.

8.02                           Privilege
License

The County
represents that if the Company is required to obtain a Privilege License, the
same will be issued on the same day requested by the Company and annually
renewed.  The initial license will be
granted to the Company at no cost.

ARTICLE IX

COMPLIANCE; REMEDIES FOR FAILURE
TO PERFORM

9.01                           Reporting

Upon request of
the State, the Office of the State Auditor or the County, the Company will
provide reasonable verification of its compliance with the Investment
Commitment or the Jobs Commitment.

 22
 

9.02                           Clawbacks

The State, the
County, and the LCIDA have agreed to provide significant financial incentives
to the Company in consideration for the Company’s commitment to make the
Investment Commitment and the Jobs Commitment. 
In the event that the Company fails to achieve these investment or job
creation minimums, then it agrees to repay the State as follows, with the repayment
obligations provided for in this ARTICLE IX being the sole repayment
obligations of the Company.

(a)                                  In
the event that the State Bond Commission of the State has issued general
obligation bonds to fund the State’s commitments to the Project or has
otherwise incurred debt for the Project (the “State Debt”) and has
expended all or any portion of the proceeds, then in the event the Company
fails to meet its Investment Commitment as set out in Section 2.01(b), the
State may request the Company to repay the State the percentage of the State
Debt or other State funds spent on the Project which equals the percentage of
the Investment Commitment not met, including any accrued interest.  The State and the Company will first confer
in good faith, taking into account all relevant factors, regarding:

(i)                                     the
reasons the Company has failed to meet the Investment Commitment,

(ii)                                  the
Company’s efforts to correct the problem, and

(iii)                               mutually
acceptable alternatives as to Company performance and enforcement of the
provisions of this Section.

If the parties do not
reach an agreement, the Company shall make repayment as provided in this
Section 9.02(a).

 23
 

(b)                                 In
the event that the State Bond Commission of the State has incurred State Debt
for the Project and has expended all or any portion of the said funds, then in
the event the Company fails to meet the Jobs Commitment set out in Section
2.01(c), the State may request the Company to pay the State a per Job amount
for each Job by which the number of new Jobs falls short of the Jobs
Commitment.  The per-Job amount payable
to the State shall be equal to that amount arrived at by: (1) dividing the
amount of the State Debt expended by the Jobs Commitment; (2) then dividing the
quotient obtained in (1) by the total number of months in the original term of
the Debt issued to fund the State’s contribution to the Project; and (3) then
by multiplying the quotient obtained in (2) by the number of whole months
remaining until maturity of the term of the State Debt issued to fund the State’s
contribution to the Project, as of the time of the default by the Company on
its Jobs Commitment.  The State and the
Company will first confer in good faith regarding:

(i)                                     the
reasons the Company has failed to meet the Jobs Commitment,

(ii)                                  the
Company’s efforts to correct the problem, and

(iii)                               mutually
acceptable alternatives as to Company performance and enforcement of the
provisions of this Section 9.02(b).

If the parties do not reach an agreement, the State
shall provide the Company with notice of default, and the Company will be given
ninety (90) days following receipt of such notice to cure such default prior to
the per Job payment becoming due and owing.

 24
 

(c)                                  The
Company’s total repayment obligation under this Section 9.02 shall not exceed
the amount paid from the State Debt issued to fund the State’s contribution to
the Project.

9.03                           Specific
Performance

The Inducers acknowledge that it is impossible to
measure in money the damages which would accrue to the Company by reason of a
failure of any of the Inducers to this MOU to perform any of their respective
obligations hereunder.  Therefore, if the
Company institutes any action or proceeding to enforce the provisions hereof,
the Inducers each agree and acknowledge that there exists no adequate remedy at
law in favor of the Company.

ARTICLE X

PROJECT COORDINATORS

Each Inducer agrees to appoint a designee to serve as
part of a Project team which will serve as a point of contact with the Company
and who will work to ensure that the Project is developed in a timely manner
and that the incentives provided for herein are timely delivered and/or paid to
the Company.

ARTICLE XI

SUPPORT FOR MINORITY CONTRACTING

The State acknowledges that the Company has existing
policies and programs, which have successfully encouraged minority
participation in contracting.  Pursuant
to the authority granted in the Enabling Legislation, MDA and the MMEIA agree
to accommodate and support the Company’s minority participation efforts.

 25

ARTICLE
XII

REPRESENTATIONS
AND WARRANTIES

12.01                     Inducers’ Representations and
Warranties

(a)                                  Each
Inducer represents and warrants that it presently has full legal authority to
enter into and perform the undertaking of this MOU, and that the governing board
of each Inducer has approved its commitments made herein by resolution properly
presented and adopted; and

(b)                                 Each
Inducer agrees that if any authorization, approval or consent of any governing
body or other local government or agency or third party is required for it to
fulfill the obligations set forth herein, each such entity will use its best
efforts to obtain such authorizations, approvals and consents in accordance
with applicable law and procedures; and

(c)                                  Each
Inducer represents and warrants that it does not know of any reason that would
prevent obtaining the necessary authorizations, approvals and consents
contained in this MOU.

(d)                                 Each
Inducer represents and warrants that, for a period of thirty (30) years from
the commencement of manufacturing at the Project Site, it shall not request or
support the passage of incentive legislation for, or otherwise provide
discretionary incentives to, another manufacturing facility for the production
of medium- or heavy-duty trucks or components therefor in Lowndes County,
Mississippi without the Company’s prior written consent.

 26
 

12.02                     The County’s Representations
and Warranties

(a)                                  The
County represents that there is no county-wide zoning existing or proposed and,
as a result, there are no zoning regulations applicable to the Project
Site.  Consequently, no zoning approvals
or waivers are required in connection with the Project.

(b)                                 The
County and LCIDA have no knowledge of

(i)                                     the
presence of any Hazardous Materials (as hereinafter defined) on, under or from the
soils, sediment, groundwater and/or surface water on, under or constituting a
part of the Project Site;

(ii)                                  any
spill, release, discharge or disposal of Hazardous Materials that has occurred
or is presently occurring on, onto, under or adjacent to the soils, sediment,
groundwater and/or surface water on, under or constituting a part of the
Project Site; or

(iii)                               any
spill, release, discharge or disposal of Hazardous Materials that has occurred
or is occurring off the Project Site as a result of any construction on or
operation and/or use of the Project Site.

“Hazardous Materials”
means gasoline, motor oil, fuel oil, waste oil, other petroleum or
petroleum-based products, asbestos, polychlorinated biphenyls, medical and
infectious wastes and any chemical, material or substance to which exposure is
prohibited, limited or regulated by any federal, state, county, local or
regional authority or which, even if not so regulated, is known to pose a
hazard to health and safety, including but not limited to substances and
materials defined or designated as “Hazardous Materials,” “hazardous wastes,” “pollutants,”

 27
 

“contaminants,” “hazardous
materials” or “toxic substances” under any environmental law or regulation.

(c)                                  There
are no pending or threatened condemnation, zoning or other land use regulation
proceedings or special or public assessments of any nature or any litigation
affecting (or which would affect) the Project Site or any portion thereof.

(d)                                 On
the date of conveyance to the Company, the LCIDA shall hold good, marketable
and indefeasible fee simple title to the Project Site, free and clear of all
encumbrances, liens, leases, claims, covenants, conditions, restrictions,
easements, rights-of-way, encroachments or any other matters of every kind and
nature, whether recorded or unrecorded, affecting title to the Project Site,
except for the Permitted Encumbrances.

(e)                                  The
County and the LCIDA have the legal power, right and authority to enter into
this MOU, convey the Project Site, and otherwise consummate the transactions
contemplated hereby.

(f)                                    The
County and the LCIDA have disclosed to the Company all matters known to them
that might have a material adverse effect on the Project or the Project Site,
or the ownership, title, value, operation or maintenance of the Project Site,
and the Project Site is not subject to any leases, easements, rights, duties,
obligations, covenants, conditions, restrictions, limitations or agreements not
of record, except for Permitted Encumbrances

(g)                                 No
representation or warranty by the County or the LCIDA contained in this MOU, or
otherwise provided in connection with the transaction contemplated hereunder
contains or will contain any untrue statement of a material fact, or

 28
 

omits or will omit to state any material fact necessary to make the
statements contained therein not misleading. 
Without limiting the generality of the foregoing, the County and the
LCIDA each represent and warrant to the Company that each has disclosed to the
Company all material facts and matters with respect to the Project Site.

12.03                     The Company’s Representations
and Warranties

The
Company represents and warrants that:

(a)                                  The
Company is a corporation organized and existing under the laws of the State of
Mississippi and has the power to perform and observe the agreements and
covenants on its part contained in this MOU; and

(b)                                 It
is the intention of the Company that the Company, its successors, assigns or
designees shall develop, or cause to be developed, the Project in one or more
phases as described herein; and

(c)                                  The
execution and delivery of this MOU on the part of the Company’s officers or
agents has been duly authorized respectively by the Company by all necessary
corporate actions; and

(d)                                 The
execution and performance of this MOU by the
Company does not constitute and will not result in the breach or violation of
any contract, lease, mortgage, bond, indenture or agreement of any nature to
which the Company is a party; and

(e)                                  The
Company has sufficient financial resources and capabilities and will secure the
necessary funding to construct and develop the Project, or to cause the Project
to be developed and constructed.

 29
 

12.04                     Survival of Representations and
Warranties

Each of the representations and warranties made by any
Party herein shall survive the conveyance of the Project Site to the Company
and the consummation of the transactions contemplated by this MOU.

ARTICLE
XIII

MISCELLANEOUS

13.01                     Time is of the Essence 

The Inducers
acknowledge that a delay in the completion of the Project will cost the Company
substantial amounts of money and, therefore, time is of the essence as to all
terms and conditions of this MOU; provided however, that the Parties hereto
acknowledge that a delay by the Company of the satisfaction of its obligations
hereunder could result in the inability of the Inducers to provide the benefits
set forth in this MOU, and, therefore, the Inducers shall not be held
accountable for any delay in their performance caused by a delay by the Company
in the performance of its obligations hereunder.  It is the intent of the Parties that the
construction portion of the Project will proceed expeditiously, unless
otherwise agreed to by the Company and the State.  All Parties agree that they will use best
efforts in their attempt to have the Project proceed on that schedule.  The Inducers will use their best efforts to
resolve any matter, not the fault of the Company, which threatens to delay the
Project.  The Inducers will proceed to
undertake all work with a sense of urgency and will use best efforts to
accommodate the Company’s schedule. 
Likewise, the Company will deliver required technical information to the
Inducers in a timely fashion so as not to delay the progress of the
Project.  Further, the provisions of this
Section 13.01 are subject to the excuse by any Party by event of

 30
 

Force Majeure, which shall mean the occurrence of any
of the following events that results in the impossibility of performance: acts
of God, earthquakes, fires, hurricanes, tornadoes, floods, and war.

13.02                     Press Releases

Each of the Inducers agrees to cooperate fully with
the Company to coordinate all press releases, other announcements, events and
publications concerning the Project, including, without limitation the initial
press release in the event Mississippi is chosen for the Project.  The Parties agree that the State, acting
through MDA, in consultation with the County, will have sole responsibility in
coordinating such activities with the Company.

13.03                     Further Assurances

Each of the Inducers agrees to do all things and take
all actions required, consistent with this MOU, to establish the Project,
including without limitation the obtaining, negotiation, execution and delivery
of all necessary or desirable deeds, agreements, filings, consents,
authorizations, approvals, licenses and/or permits (including, but not limited
to environmental permits).  Further, the
Parties hereto understand and acknowledge that each Inducer must, and shall,
appropriate in, or receive appropriations for, their annual budgets, or issue debt
for, the amounts required to fulfill the commitments and financial undertakings
agreed to hereunder.

13.04                     Supplemental Agreements

The Inducers and
the Company acknowledge and agree that supplemental agreements will, from time
to time, be appropriate and advantageous in order to ensure a smooth
accommodation of development on the scale and time horizon expected for the
Project.  Recognizing that the
commitments of this MOU are broad statements of intent that do not

 31
 

address specific inducements and commitments in
detail, the Parties also agree to negotiate in good faith to provide such other
commitments and undertakings as may be reasonably required to ensure that the
intent and purposes of this MOU are realized.

13.05                     Waivers; Authorizations

The Company, and only the Company, may waive any of
the obligations of one or more of the Inducers set forth in this MOU.  No delay or omission to exercise any right or
power by any Party shall be construed to be a waiver thereof.  In the event any provision contained herein
shall be waived by the Company, such waiver shall not be deemed to waive any
other provision hereunder.  To the extent
that any Party’s performance subsequent to the Effective Date is subject to any
regulatory or governing body approvals or requires approval by qualified
electors under applicable law, that party or those Parties shall have no
obligation to perform and shall not be liable for non-performance, unless and
until such regulatory or governing body approves or authorizes such performance,
or such approval of the qualified electors is obtained; provided, however, all
Parties affected thereby shall use their best efforts to secure such approval
or authorization.

13.06                     Successors

All of the provisions herein contained shall be
binding upon and for the benefit of the respective successors, assigns and
designees of the Parties hereto, to the same extent as if each successor,
assign and designee were in each case named as a Party to this MOU.

13.07                     Assignment

This MOU and the
benefits provided herein are not assignable by the Company without the prior
written consent of each Party whose rights or obligations are affected, which
consent shall not be unreasonably withheld, except that no consent shall be
required for

 32
 

any assignment to an entity that controls, is
controlled by, or is under common control with, PACCAR Inc.

13.08                     Amendments

This MOU may be amended by mutual agreement of the
MDA, MMEIA and the Company and any Inducer whose rights or obligations are
thereby affected.  Any amendments to this
MOU shall be in writing and signed by the affected Party and Company.

13.09                     Severability

If any provision of this MOU shall be held or deemed
to be or shall, in fact, be invalid, inoperative or unenforceable, the same
shall not affect any other provision or provisions herein contained or render
the same invalid, inoperative or unenforceable to any extent whatsoever.

13.10                     Survival of Representation and
Warranties

The representations, warranties and covenants made by
the Inducers and the Company and contained herein shall survive the performance
of any obligations to which such representations, warranties and covenants
relate.

13.11                     Term

The term of this MOU shall commence on the Effective
Date and shall continue in effect through the date on which the Company, its
successors and assigns, ceases to operate the Project.

13.12                     Choice of Law

This MOU shall be
governed by the laws of the State of Mississippi and venue shall lie in the
First Judicial District of Hinds County, Mississippi.

 33

13.13                     Support for Expansion

The Inducers agree
to work with the Company to obtain support for necessary infrastructure
improvements and additional incentives for any expansion of the Project that
may be hereafter proposed by the Company.

13.14                     Headings

The use of
captions and headings in this MOU are solely for convenience of reference and
shall have no legal effect in construing the provisions of this MOU.

13.15                     Notices

All communications
and notices expressly provided for herein shall be sent, by registered first
class mail, postage prepaid, or by nationally recognized courier for delivery
on the next business day, or by telecopy (with such telecopy to be promptly
confirmed in writing sent by mail or overnight courier as aforesaid) as
follows:

	
  State of Mississippi

  	
  Haley Barbour 

  Governor 

  Post Office Box 139 

  Jackson, Mississippi 39205 

  Fax: 601-359-3741

  
	
   

  	
   

  
	
  Mississippi Development
  Authority

  	
  Gray Swoope 

  Executive Director 

  501 North West Street (39202) 

  Post Office Box 849 

  Jackson, Mississippi 39205-3613 

  Fax: 601-359-3613

  
	
   

  	
   

  
	
  Mississippi Major
  Economic 

  Impact Authority

  	
  Gray Swoope 

  Executive Director 

  501 North West Street (39202) 

  Post Office Box 849 

  Jackson, Mississippi 39205-3613 

  Fax: 601-359-3613

  

 

 34
 

 

	
  Mississippi Department of 

  Environmental Quality

  	
  Trudy D. Fisher 

  Executive Director 

  Post Office Box 20305 

  Jackson, Mississippi 39289-1305 

  Fax: 601-961-5794

  
	
   

  	
   

  
	
  Mississippi Department
  of 

  Employment Security

  	
  Tommye Dale Favre 

  Executive Director 

  1235 Echelon Parkway 

  Post Office Box 1699 

  Jackson, Mississippi 39215-1699

  
	
   

  	
   

  
	
  East Mississippi
  Community College

  	
  Dr. Rick Young 

  President 

  Post Office Box 188 

  Scooba, Mississippi 39358 

  (662) 476-5050

  
	
   

  	
   

  
	
  Lowndes County,
  Mississippi

  	
  Harry Sanders 

  President 

  Lowndes County Board of Supervisors 

  Post Office Box 1364 

  Columbus, Mississippi39703 

  Fax: 662-329-5881

  
	
   

  	
   

  
	
  Lowndes County
  Industrial 

  Development Authority

  	
  Thomas Lee, Sr. 

  President 

  Post Office Box 1328 

  Columbus, Mississippi 39703

  
	
   

  	
   

  
	
  Oktibbeha County

  	
  David Oswalt 

  President 

  Oktibbeha County Board of Supervisors 

  Post Office Box 80285 

  Starkville, Mississippi 39759 

  Fax: 662-338-1065

  

 

 35
 

 

	
  PACCAR Engine Company

  	
  James G. Cardillo 

  President 

  777 106th Avenue N.E. 

  Bellevue, WA 98004 

   

  
	
   

  	
  Copy to:

  	
  Kevin J. Fay 

  
	
   

  	
   

  	
  Counsel 

  
	
   

  	
   

  	
  PACCAR Inc

  

 

13.16                     Binding Effect

This MOU and all
terms, provisions and obligations set forth herein constitute the valid, legal
and binding obligations of each of the Parties hereto.  The terms of this MOU shall be binding upon
and shall inure to the benefit of the Company and its successors and assigns
and shall be binding upon and shall inure to the benefit of the State, each of
the Inducers and any other agencies, departments, divisions, governmental entities,
public corporations and other entities which shall be successors to the State
or any of the Inducers or which shall succeed to or become obligated to perform
or become bound by any of the covenants, agreements or obligations hereunder of
the State hereto.  In addition, the
Inducers agree:

(a)                                  to
take all actions, without exception, which are necessary and appropriate at any
time to assure the binding effect, legality and enforceability of their
respective obligations hereunder and

(b)                                 not
to take any action that would affect adversely in any way whatsoever the
binding effect, legality and enforceability of their respective obligations
hereunder.

 36
 

13.17                     Cost and Expense

Except as
otherwise provided herein, each Party agrees to pay its own costs incurred in
connection with the Project, including all costs and expenses incurred in
connection with the preparation of this MOU or otherwise.

13.18                     Counterparts

This MOU may be
simultaneously executed in several counterparts, each of which shall be an
original and all of which shall constitute but one and the same instrument.

IN
WITNESS WHEREOF, the Parties have executed this MOU on the
date of acknowledgment of their respective signatures, but in each case to be
effective as of the Effective Date.

 

 

 

 

[signature pages follow]

 37

 

	
  

  	
  STATE OF MISSISSIPPI

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Haley Barbour, Governor

  

 

 

 

 

	
  STATE OF MISSISSIPPI

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
  COUNTY OF HINDS

  	
  )

  	
   

  

 

Personally appeared
before me, the undersigned authority in and for the said county and state, on
this          day of May, 2007, within
my jurisdiction, the within named Haley Barbour, who acknowledged that he is
the Governor of the State of Mississippi, and that for and on behalf of the
State of Mississippi, and as its act and deed, he executed the above and
foregoing instrument after first having been duly authorized by said State of
Mississippi so to do.

	
  

  	
   

  
	
   

  	
   

  
	
   

  	
  NOTARY PUBLIC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  My commission expires:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

 38
 

 

	
  

  	
  MISSISSIPPI DEVELOPMENT
  AUTHORITY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Gray Swoope, Executive Director

  

 

 

 

 

	
  STATE OF MISSISSIPPI

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
  COUNTY OF HINDS

  	
  )

  	
   

  

 

Before me, the
undersigned, a Notary Public, in and for said county, in said state, personally
appeared Gray Swoope, Executive Director of the Mississippi Development
Authority, whose name is signed to the foregoing Agreement, and who is know to
me, being first duly sworn, acknowledged before me on this day that, being
informed of the contents of said Agreement, makes oath that he, as such
official and with full authority, has read the foregoing Agreement and knows
the contents thereof, executed the same voluntarily for and as the act of said
Mississippi Development Authority on this date.

Subscribed and sworn to before me on this the
           day of May 2007.

	
  

  	
   

  
	
   

  	
   

  
	
   

  	
  NOTARY PUBLIC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  My commission expires:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

 39
 

 

	
  

  	
  MISSISSIPPI MAJOR ECONOMIC
  IMPACT AUTHORITY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Gray Swoope, Executive Director

  

 

 

 

 

	
  STATE OF MISSISSIPPI

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
  COUNTY OF HINDS

  	
  )

  	
   

  

 

Personally appeared
before me, the undersigned authority in and for the said county and state, on
this          day of May, 2007, within
my jurisdiction, the within named Gray Swoope, who acknowledged that he is
Executive Director of Mississippi Major Economic Impact Authority, and that for
and on behalf of said Authority, and as its act and deed, he executed the above
and foregoing instrument after first having been duly authorized by said
Authority so to do.

	
  

  	
   

  
	
   

  	
   

  
	
   

  	
  NOTARY PUBLIC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  My commission expires:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

 40
 

 

	
  

  	
  MISSISSIPPI DEPARTMENT OF ENVIRONMENTAL QUALITY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Trudy D. Fisher, Executive Director

  

 

 

 

 

	
  STATE OF MISSISSIPPI

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
  COUNTY OF HINDS

  	
  )

  	
   

  

 

Personally appeared
before me, the undersigned authority in and for the said county and state, on
this          day of May, 2007, within
my jurisdiction, the within named Trudy D. Fisher, who acknowledged that she is
Executive Director of Mississippi Department of Environmental Quality, and that
for and on behalf of said Department, and as its act and deed, she executed the
above and foregoing instrument after first having been duly authorized by said
Department so to do.

	
  

  	
   

  
	
   

  	
   

  
	
   

  	
  NOTARY PUBLIC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  My commission expires:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

 41
 

 

	
  

  	
  MISSISSIPPI DEPARTMENT OF
  EMPLOYMENT SECURITY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Tommye Dale Favre, Executive Director

  

 

 

 

 

	
  STATE OF MISSISSIPPI

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
  COUNTY OF

  	
  )

  	
   

  

 

Personally appeared
before me, the undersigned authority in and for the said county and state, on
this          day of May, 2007, within
my jurisdiction, the within named Tommye Dale Favre, who acknowledged that she
is Executive Director of the Mississippi Department of Employment Security, and
that for and on behalf of said Department, and as its act and deed, she
executed the above and foregoing instrument after first having been duly
authorized by said Department so to do.

	
  

  	
   

  
	
   

  	
   

  
	
   

  	
  NOTARY PUBLIC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  My commission expires:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

 42
 

 

	
  

  	
  EAST MISSISSIPPI COMMUNITY
  COLLEGE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Dr. Rick Young, President

  

 

 

 

 

	
  STATE OF MISSISSIPPI

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
  COUNTY OF

  	
  )

  	
   

  

 

Personally appeared
before me, the undersigned authority in and for the said county and state, on
this          day of May, 2007, within
my jurisdiction, the within named Dr. Rick Young, who acknowledged that he is
President of East Mississippi Community College, a Mississippi community
college, and that for and on behalf of the said community college, and as its
act and deed, he executed the above and foregoing instrument after first having
been duly authorized by said community college so to do.

	
  

  	
   

  
	
   

  	
   

  
	
   

  	
  NOTARY PUBLIC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  My commission expires:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

 43
 

 

	
  

  	
  LOWNDES COUNTY, MISSISSIPPI

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Harry Sanders

  
	
   

  	
   

  	
  President of the Board of Supervisors

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ATTEST:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Lisa Younger Neese,

  	
   

  	
   

  
	
  Clerk of the Board of
  Supervisors

  	
   

  	
   

  

 

 

	
  STATE OF MISSISSIPPI

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
  COUNTY OF LOWNDES

  	
  )

  	
   

  

 

Personally appeared
before me, the undersigned authority in and for the said county and state, on
this          day of May, 2007, within
my jurisdiction, the within named Harry Sanders and Lisa Younger Neese, who
acknowledged that they are the President and Clerk, respectively, of the
Lowndes County Board of Supervisors, and that for and on behalf of said Lowndes
County Board of Supervisors, and as its act and deed, they executed the above
and foregoing instrument after first having been duly authorized so to do.

Subscribed and sworn to before me on this the
           day of May, 2007.

	
  

  	
   

  
	
   

  	
   

  
	
   

  	
  NOTARY PUBLIC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  My commission expires:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

 44
 

 

	
  

  	
  OKTIBBEHA COUNTY, MISSISSIPPI

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  David Oswalt,

  
	
   

  	
   

  	
  President of the Board of Supervisors

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ATTEST:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Monica Banks,

  	
   

  	
   

  
	
  Clerk of the Board of
  Supervisors

  	
   

  	
   

  

 

 

	
  STATE OF MISSISSIPPI

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
  COUNTY OF OKTIBBEHA

  	
  )

  	
   

  

 

Personally appeared
before me, the undersigned authority in and for the said county and state, on
this          day of May, 2007, within
my jurisdiction, the within named David Oswalt and Monica Banks, who
acknowledged that they are the President and Clerk, respectively, of the
Oktibbeha County Board of Supervisors, and that for and on behalf of said
Oktibbeha County Board of Supervisors, and as its act and deed, they executed
the above and foregoing instrument after first having been duly authorized so
to do.

Subscribed and sworn to before me on this the
           day of
                            ,
2007.

	
  

  	
   

  
	
   

  	
   

  
	
   

  	
  NOTARY PUBLIC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  My commission expires:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

 45
 

 

	
  

  	
  LOWNDES COUNTY INDUSTRIAL
  DEVELOPMENT AUTHORITY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Thomas Lee, Sr., President

  

 

 

 

 

	
  STATE OF MISSISSIPPI

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
  COUNTY OF

  	
  )

  	
   

  

 

Personally appeared
before me, the undersigned authority in and for the said county and state, on
this          day of May, 2007, within
my jurisdiction, the within named Thomas Lee, Sr., who acknowledged that he is
President of Lowndes County Industrial Development Authority, a public
authority, and that for and on behalf of the said Authority, and as its act and
deed, he executed the above and foregoing instrument after first having been
duly authorized by said Authority so to do.

Subscribed and sworn to before me on this the
           day of
                            ,
2007.

	
  

  	
   

  
	
   

  	
   

  
	
   

  	
  NOTARY PUBLIC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  My commission expires:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

 46
 

 

	
  

  	
  PACCAR ENGINE COMPANY

  
	
   

  	
  a Mississippi
  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Richard E. Bangert, II

  
	
   

  	
   

  	
  Authorized Representative

  

 

 

 

 

	
  STATE OF WASHINGTON

  	
  )

  	
   

  
	
   

  	
  ) ss.

  	
   

  
	
  COUNTY OF KING

  	
  )

  	
   

  

 

I certify that I know or
have satisfactory evidence that Richard E. Bangert, II is the person who
appeared before me, and said person acknowledged that he signed this
instrument, on oath stated that he was authorized to execute the instrument and
acknowledged it as the Authorized Representative of PACCAR ENGINE COMPANY, a
Mississippi corporation, to be the free and voluntary act of such party for the
uses and purposes mentioned in the instrument.

	
  

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Kevin J. Fay

  NOTARY PUBLIC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  My commission expires:

  	
   

  
	
   

  	
   

  
	
  October 3, 2008

  	
   

  
											

 

 47

EXHIBIT
A

LEGAL DESCRIPTION OF PROJECT SITE

DESCRIPTION #1 — ALTA SURVEY PART 1

Commencing at a found nail at a fence corner being the
NE corner of Section 35, T-19-N, R-16-E, Lowndes County, Mississippi. State
Plane coordinates: N-1,447,055.7810 us ft 
E-1,060,320.1220 us ft; thence S86°30’37”W, a distance of 1,085.93 feet;
thence S89°35’43”W, a distance of 612.11 feet to the point of beginning; from
said point of beginning; thence South, a distance of 2,622.59 feet to the
southeast corner of subject tract and being located in a farm pond; thence
S89°42’58”W, a distance of 2,236.33 feet; thence S89°55’19”W, a distance of
40.56 feet; thence S89°56’11”W, a distance of 1,336.93 feet; thence North, a
distance of 2,698.50 feet; thence North, a distance of 909.73 feet; thence
S89°08’05”E, a distance of 207.19 feet; thence N89°43’08”E, a distance of
700.86 feet; thence N89°43’08”E, a distance of 351.98 feet; thence N89°43’08”E,
a distance of 58.23 feet; thence N89°43’08”E, a distance of 22.03 feet; thence
N00°16’51”W, a distance of 10.00 feet; thence N89°43’09”E, a distance of 18.05
feet; thence N89°43’09”E, a distance of 1,430.04 feet; thence S82°52’24”E, a
distance of 346.86 feet; thence S68°21’14”E, a distance of 360.95 feet; thence
S59°44’30”E, a distance of 168.84 feet; thence South, a distance of 731.31 feet
to the point of beginning located in the SE 1/4 of the SW 1/4, SW 1/4 of the SE
1/4, SW 1/4 of the SW 1/4 of Section 26; NE 1/4 of the NW 1/4, NW 1/4 of the NE
1/4, SE 1/4 of the NW 1/4, SW 1/4 of the NE 1/4, NW 1/4 of the NW 1/4, SW 1/4
of the NW 1/4 of Section 35, T-19-N, R-16-E, Lowndes County, Mississippi; Less
and except the following Lowndes County Right-of-Way description for 3.3185
acres, more or less leaving 294.7759 acres, more or less.

LESS AND EXCEPT — LOWNDES COUNTY RIGHT-OF-WAY (RAYMOND
ROAD)

Commencing at a found nail at a fence corner
being the NE corner of Section 35, T-19-N, R-16-E, Lowndes County, Mississippi.
State Plane coordinates: N-1,447,055.7810 us ft 
E-1,060,320.1220 us ft; thence S86°30’37”W, a distance of 1,085.93 feet;
thence S89°35’43”W, a distance of 612.11 feet; thence South, a distance of
2,622.59 feet to a point located in a farm pond; thence S89°42’58”W, a distance
of 2,236.33 feet to the point of beginning; from said point of beginning thence
S89°55’19”W, a distance of 40.56 feet; thence along a curve having a radius of
120.00 feet, arc length of 14.34 feet, delta angle of 06°50’56” right, a chord
bearing of N04°23’30”W, and a chord length of 14.34 feet; thence N00°58’02”W, a
distance of 346.68 feet; thence N01°24’33”W, a distance of 236.82 feet; thence
N00°05’05”E, a distance of 241.61 feet; thence N00°27’41”W, a distance of
574.64 feet; thence N00°09’28”W, a distance of 794.77 feet; thence N00°10’18”W,
a distance of 419.31 feet; thence N00°03’45”E, a distance of 540.02 feet;
thence N00°09’22”E, a distance of 441.07 feet; thence N89°43’08”E, a distance
of 22.03 feet; thence N00°16’51”W, a distance of 10.00 feet; thence N89°43’09”E,
a distance of 18.05 feet; thence S00°09’22”W, a distance of 451.35 feet; thence
S00°03’45”W, a distance of 539.90 feet; thence S00°10’18”E, a distance of 10.26
feet; thence S00°10’18”E, a distance of 408.98 feet; thence S00°09’28”E, a
distance of 794.67 feet; thence S00°27’41”E, a distance of 574.73 feet; thence
S00°05’05”W, a distance of 241.28 feet; thence S01°24’33”E, a distance of
236.45 feet; thence S00°58’02”E, a distance of 346.84 feet; thence along a
curve having a radius of 80.00 feet, arc length of 15.03 feet, delta angle of
10°45’46” left, a chord bearing of S06°20’56”E, and a

 A-1
 

chord length of 15.01 feet to the point of
beginning located in the SE 1/4 of the SW 1/4 of Section 26; NE 1/4 of the NW
1/4, SE 1/4 of the NW 1/4 of Section 35, T-19-N, R-16-E, Lowndes County,
Mississippi and containing 3.3185 acres, more or less.

DESCRIPTION #2 —
ALTA SURVEY PART 2

Commencing at a found nail at a fence corner being the
NE corner of Section 35, T-19-N, R-16-E, Lowndes County, Mississippi. State
Plane coordinates: N-1,447,055.7810 us ft 
E-1,060,320.1220 us ft; thence S86°30’37”W, a distance of 1,085.93 feet;
thence S89°35’43”W, a distance of 612.11 feet; thence South, a distance of
2,622.59 feet to a point located in a farm pond; thence S89°42’58”W, a distance
of 2,236.33 feet; thence S89°55’19”W, a distance of 40.56 feet; thence S89°56’11”W,
a distance of 1,336.93 feet to the point of beginning; from said point of
beginning; thence S89°56’11”W, a distance of 1,350.00 feet; thence North, a
distance of 3,608.95 feet; thence N89°43’23”E, a distance of 558.13 feet;
thence N89°42’44”E, a distance of 498.96 feet; thence S89°08’05”E, a distance
of 292.96 feet; thence South, a distance of 909.73 feet; thence South, a
distance of 2,698.50 feet to the point of beginning located in the SE 1/4 of
the SE 1/4 of Section 27; NE 1/4 of the NE 1/4, SE 1/4 of the NE 1/4 of Section
34; T-19-N, R-16-E, Lowndes County, Mississippi and containing 111.9072 acres,
more or less.

The above
described property is intended to be one and the same as the following
described property:

DESCRIPTION #1 —
JOHN P. & LINDA B. SCARBROUGH

Commencing at a found nail at a fence corner
being the NE corner of Section 35, T-19-N, R-16-E, Lowndes County, Mississippi.
State Plane coordinates: N-1,447,055.7810 us ft 
E-1,060,320.1220 us ft; thence S86°30’37”W, a distance of 1,085.93 feet;
thence S89°35’43”W, a distance of 612.11 feet to the point of beginning; from
said point of beginning thence S89°35’43”W, a distance of 2,257.38 feet; thence
N00°10’18”W, a distance of 10.26 feet; thence N00°03’45”E, a distance of 539.90
feet; thence N00°09’22”E, a distance of 451.35 feet; thence N89°43’09”E, a
distance of 1,430.04 feet; thence S82°52’24”E, a distance of 346.86 feet;
thence S68°21’14”E, a distance of 360.95 feet; thence S59°44’30”E, a distance
of 168.84 feet; thence South, a distance of 731.31 feet to the point of
beginning located in the SE 1/4 of the SW 1/4, SW 1/4 of the SE 1/4 of Section
26; NE 1/4 of the NW 1/4, NW 1/4 of the NE 1/4 of Section 35, T-19-N, R-16-E,
Lowndes County, Mississippi and containing 49.9718 acres, more or less.

DESCRIPTION #2 —
BARTON WAYNE FISHBACK

Commencing at a found nail at a fence corner
being the NE corner of Section 35, T-19-N, R-16-E, Lowndes County, Mississippi.
State Plane coordinates: N-1,447,055.7810 us ft 
E-1,060,320.1220 us ft; thence S86°30’37”W, a distance of 1,085.93 feet;
thence S89°35’43”W, a distance of 612.11 feet to the point of beginning; from
said point of beginning thence South, a distance of 2,622.59 feet; thence
S89°42’58”W, a distance of 2,236.33 feet; thence along a curve having a radius
of 80.00 feet, arc length of 15.03 feet, delta angle of 10°45’46” right, a
chord bearing of N06°20’56”W, and a chord length of 15.01 feet; thence N00°58’02”W,
a distance of 346.84 feet; thence N01°24’33”W, a distance of 236.45 feet;
thence N00°05’05”E, a distance of

 A-2
 

241.28 feet; thence N00°27’41”W, a distance of
574.73 feet; thence N00°09’28”W, a distance of 794.67 feet; thence N00°10’18”W,
a distance of 408.98 feet; thence N89°35’43”E, a distance of 2,257.38 feet to
the point of beginning located in the NE 1/4 of the NW 1/4, NW 1/4 of the NE
1/4, SE 1/4 of the NW 1/4, SW 1/4 of the NE 1/4 of Section 35, T-19-N, R-16-E,
Lowndes County, Mississippi and containing 135.4190 acres, more or less.

DESCRIPTION #3 —
LOWNDES COUNTY RIGHT-OF-WAY (RAYMOND ROAD)

Commencing at a found nail at a fence corner
being the NE corner of Section 35, T-19-N, R-16-E, Lowndes County, Mississippi.
State Plane coordinates: N-1,447,055.7810 us ft 
E-1,060,320.1220 us ft; thence S86°30’37”W, a distance of 1,085.93 feet;
thence S89°35’43”W, a distance of 612.11 feet; thence South, a distance of
2,622.59 feet; thence S89°42’58”W, a distance of 2,236.33 feet to the point of
beginning; from said point of beginning thence S89°55’19”W, a distance of 40.56
feet; thence along a curve having a radius of 120.00 feet, arc length of 14.34
feet, delta angle of 06°50’56” right, a chord bearing of N04°23’30”W, and a
chord length of 14.34 feet; thence N00°58’02”W, a distance of 346.68 feet;
thence N01°24’33”W, a distance of 236.82 feet; thence N00°05’05”E, a distance
of 241.61 feet; thence N00°27’41”W, a distance of 574.64 feet; thence N00°09’28”W,
a distance of 794.77 feet; thence N00°10’18”W, a distance of 419.31 feet;
thence N00°03’45”E, a distance of 540.02 feet; thence N00°09’22”E, a distance
of 441.07 feet; thence N89°43’08”E, a distance of 22.03 feet; thence N00°16’51”W,
a distance of 10.00 feet; thence N89°43’09”E, a distance of 18.05 feet; thence
S00°09’22”W, a distance of 451.35 feet; thence S00°03’45”W, a distance of
539.90 feet; thence S00°10’18”E, a distance of 10.26 feet; thence S00°10’18”E,
a distance of 408.98 feet; thence S00°09’28”E, a distance of 794.67 feet;
thence S00°27’41”E, a distance of 574.73 feet; thence S00°05’05”W, a distance
of 241.28 feet; thence S01°24’33”E, a distance of 236.45 feet; thence S00°58’02”E,
a distance of 346.84 feet; thence along a curve having a radius of 80.00 feet,
arc length of 15.03 feet, delta angle of 10°45’46” left, a chord bearing of
S06°20’56”E, and a chord length of 15.01 feet to the point of beginning located
in the SE 1/4 of the SW 1/4 of Section 26; NE 1/4 of the NW 1/4, SE 1/4 of the
NW 1/4 of Section 35, T-19-N, R-16-E, Lowndes County, Mississippi and
containing 3.3185 acres, more or less.

DESCRIPTION #4 —
MDOT DRAINAGE EASEMENT

Commencing at a found nail at a fence corner
being the NE corner of Section 35, T-19-N, R-16-E, Lowndes County, Mississippi.
State Plane coordinates: N-1,447,055.7810 us ft 
E-1,060,320.1220 us ft; thence S86°30’37”W, a distance of 1,085.93 feet;
thence S89°35’43”W, a distance of 612.11 feet; thence North, a distance of
731.31 feet; thence N59°44’30”W, a distance of 168.84 feet; thence N68°21’14”W,
a distance of 360.95 feet; thence N82°52’24”W, a distance of 346.86 feet;
thence S89°43’09”W, a distance of 1,430.04 feet; thence S89°43’09”W, a distance
of 18.05 feet; thence S00°16’51”E, a distance of 10.00 feet; thence S89°43’08”W,
a distance of 22.03 feet; thence S89°43’08”W, a distance of 58.23 feet to the
point of beginning; from said point of beginning thence S00°17’00”W, a distance
of 200.46 feet; thence S89°43’00”W, a distance of 150.00 feet; thence N00°17’00”W,
a distance of 100.00 feet; thence S89°43’00”W, a distance of 200.00 feet;
thence N00°17’00”W, a distance of 100.47 feet; thence N89°43’08”E, a distance
of 351.98 feet to the point of beginning located in the SW 1/4 of the SW 1/4 of
Section 26, T-19-N, R-16-E, Lowndes County, Mississippi and containing 1.1561
acres, more or less.

 A-3
 

DESCRIPTION #5- BBS LAND LLC

Commencing at a found nail at a fence corner
being the NE corner of Section 35, T-19-N, R-16-E, Lowndes County, Mississippi.
State Plane coordinates: N-1,447,055.7810 us ft 
E-1,060,320.1220 us ft; thence S86°30’37”W, a distance of 1,085.93 feet;
thence S89°35’43”W, a distance of 612.11 feet; thence South, a distance of
2,622.59 feet; thence S89°42’58”W, a distance of 2,236.33 feet; thence S89°55’19”W,
a distance of 40.56 feet to the point of beginning; from said point of
beginning thence S89°56’11”W, a distance of 1,336.93 feet; thence S89°56’11”W,
a distance of 1,350.00 feet; thence North, a distance of 3,608.95 feet; thence
N89°43’23”E, a distance of 558.13 feet; thence N89°42’44”E, a distance of
498.96 feet; thence S89°08’05”E, a distance of 292.96 feet; thence S89°08’05”E,
a distance of 207.19 feet; thence N89°43’08”E, a distance of 700.86 feet;
thence S00°17’00”E, a distance of 100.47 feet; thence N89°43’00”E, a distance
of 200.00 feet; thence S00°17’00”E, a distance of 100.00 feet; thence N89°43’00”E,
a distance of 150.00 feet; thence N00°17’00”E, a distance of 200.46 feet;
thence N89°43’08”E, a distance of 58.23 feet; thence S00°09’22”W, a distance of
441.07 feet; thence S00°03’45”W, a distance of 540.02 feet; thence S00°10’18”E,
a distance of 419.31 feet; thence S00°09’28”E, a distance of 794.77 feet;
thence S00°27’41”E, a distance of 574.64 feet; thence S00°05’05”W, a distance
of 241.61 feet; thence S01°24’33”E, a distance of 236.82 feet; thence S00°58’02”E,
a distance of 346.68 feet; thence along a curve having a radius of 120.00 feet,
arc length of 14.34 feet, delta angle of 06°50’56” left, a chord bearing of
S04°23’30”E, and a chord length of 14.34 feet to the point of beginning located
in the SW 1/4 of the SW 1/4 of Section 26; SE 1/4 of the SE 1/4 of Section 27; NE
1/4 of the NE 1/4, SE 1/4 of the NE 1/4 of Section 34; NW 1/4 of the NW 1/4, SW
1/4 of the NW 1/4 of Section 35, T-19-N, R-16-E, Lowndes County, Mississippi
and containing 220.1362 acres, more or less.

 A-4

EXHIBIT B

PERMITTED ENCUMBRANCES

1.                                       Prior
reservations and conveyances of oil, gas or other minerals, together with any
existing leases pertaining to same; provided however, that any right of a
mineral owner or lessee to damage or utilize any portion of the surface estate
of the Project Site in connection with the exploration for or production of
minerals, or otherwise, shall not be a Permitted Encumbrance;

2.                                       Existing
blanket utility easements, which the County shall cause to be extinguished and
replaced with specific easements;

3.                                       Any
dedicated public road(s) presently existing on the Project Site which the
County shall cause to be abandoned and conveyed to the Company;

4.                                       Deeds
of Aviation and Hazard Easement;

5.                                       That
certain Drainage Easement to the State Highway Commission of Mississippi dated
June 22, 1972, and recorded in Deed Book 454 at Page 163 in the land records of
Lowndes County, Mississippi;

6.                                       Lien
for 2007 real estate taxes not yet due and payable.

 B-1

EXHIBIT C

MEMORANDUM OF LEASE

	
  Prepared By:

  	
  Indexing Instructions:

  
	
  Daniel L. Singletary

  MS Bar No. 6824

  Baker Donelson Bearman Caldwell & Berkowitz

  4268 I-55 North

  Meadowbrook Office Park

  Jackson, Mississippi 39211

  Phone: (601) 351-2400

  	
  This property is situated in the SW/4; SE/4; Section
  26, T19N, R16E; SE/4; Section 27, T19N, R16E; NE/4; Section 34, T19N, R16E;
  NW/4; NE/4; Section 35;

  Lowndes County, Mississippi

  

 

MEMORANDUM
OF LEASE

STATE OF MISSISSIPPI

COUNTY OF LOWNDES

KNOW ALL MEN BY THESE PRESENTS, that:

LOWNDES COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY,
P. O. Box 1328, Columbus, MS 39703, Business Telephone (662-328-8369), a legal
entity created and existing under the laws of the State of Mississippi (“Lessor”),
by Lease dated May     , 2007, did execute and deliver same
unto PACCAR ENGINE COMPANY,
                                                  
                                                  ,
Business Telephone
                                                    ,
a Mississippi corporation (“Lessee”), for a term commencing on May
    , 2007, and continuing thereafter until terminated by
Lessee by the filing of an instrument canceling this Memorandum of Lease,
pertaining to that certain property situated in Lowndes County, Mississippi,
more particularly described as follows:

Five (5) separate parcels
of land having an approximate area of 410 acres, more or less, as depicted on
the attached plat as Exhibit A,
and more particularly described by a narrative metes and bounds description
attached to the Lease as Exhibit B.

 C-1
 

This Memorandum is
to be placed of record and serve as notice of the execution and existence of
said Lease, and, except as provided for therein, is in no way to supersede same
or to abrogate, change, alter or modify any of the terms and conditions or any
of the rights and obligations of any of the parties, all of which are set forth
in detail in said Lease, which is made a part hereof by reference for all
purposes to the same effect as though written in extenso herein.

THUS DONE AND SIGNED as of this
         day of May, 2007.

	
  

  	
  LESSOR:

  
	
   

  	
   

  
	
   

  	
  LOWNDES COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Thomas Lee, Sr.

  
	
   

  	
   

  	
  President

  
	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  ATTEST:

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Karl Williams, Secretary

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LESSEE:

  
	
   

  	
   

  
	
   

  	
  PACCAR ENGINE COMPANY

  
	
   

  	
  a Mississippi corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Richard E. Bangert, II

  
	
   

  	
   

  	
  Authorized Representative

  
																																						

 

 C-2
 

STATE OF MISSISSIPPI

COUNTY OF LOWNDES

PERSONALLY
appeared before me, the undersigned authority in and for the said County and
State, on this
                    
day of May, 2007, within my jurisdiction, the within named THOMAS LEE,
SR. and KARL WILLIAMS,
who acknowledged that they are President and Secretary, respectively, of the
LOWNDES COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY, a legal entity created and
existing under the laws of the State of Mississippi, and that for and on behalf
of the said Lowndes County Industrial Development Authority, and as its act and
deed, they executed the above and foregoing instrument, after first being duly
authorized so to do.

	
  

  	
   

  
	
   

  	
   

  
	
   

  	
  NOTARY PUBLIC

  
	
   

  	
   

  
	
  My Commission Expires:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

 

STATE OF WASHINGTON

COUNTY OF KING

Personally appeared
before me, the undersigned authority in and for the said county and state, on
this the            day of
                  ,
2007, within my jurisdiction, the within named 
Richard E. Bangert, II, who acknowledged that he is the Authorized
Representative of PACCAR ENGINE COMPANY, a Mississippi corporation, and that
for an on behalf of said corporation, and as its act and deed, he executed the
above and foregoing instrument, after first having been duly authorized by said
corporation so to do.

	
  

  	
   

  
	
   

  	
   

  
	
   

  	
  Kevin J. Fay

  NOTARY PUBLIC

  
	
   

  	
   

  
	
  My commission expires:

  	
   

  
	
   

  	
   

  
	
  October 3, 2008

  	
   

  

 

 C-3Exhibit 4.4

WARRANT
AGREEMENT

This Warrant Agreement (this “Agreement”) made
as of          , 2007, by and
between Arcade Acquisition Corp., a Delaware corporation with offices, c/o
Arcade Partners, LLC, at 62 La Salle Road, Suite 304, West Hartford, CT  06107 (the “Company”), and Continental
Stock Transfer & Trust Company, a New York corporation with offices at 17
Battery Place, New York, New York 10004 (the “Warrant Agent”).

WHEREAS, the Company is engaged in a public offering
(the “Public Offering”) of units, each unit comprised of one share of
Common Stock (as defined below) and one Public Warrant (as defined herein) (the
“Units”) and, in connection therewith, has determined to issue and
deliver (i) up to 8,625,000 warrants (the “Public Warrants”) to the
public investors, (ii) 2,000,000 warrants (the “Placement Warrants”) to
one of the initial stockholders of the Company (the “Initial Purchaser”) in a
concurrent private placement pursuant to that certain Warrant Purchase
Agreement dated            ,
2007 (the “Purchase Agreement”), and (iii) 750,000 warrants to Morgan
Joseph & Co. Inc. (“Morgan Joseph”) or its designees (the “Underwriters’
Warrants” and, together with the Public Warrants and the Placement
Warrants, the “Warrants”), each of such Warrants evidencing the right of
the holder thereof to purchase one share of common stock, par value $.0001 per
share, of the Company’s Common Stock (the “Common Stock”); and

WHEREAS, the Company has filed with the Securities and
Exchange Commission (the “SEC”) a Registration Statement, No. 333-140814
on Form S-1 (as may be amended from time to time) (the “Registration
Statement”) for the registration under the Securities Act of 1933, as
amended (the “Act”) of, among other securities, the Public Warrants and
the Common Stock issuable upon exercise of such Public Warrants; and

WHEREAS, the Company desires the Warrant Agent to act
on behalf of the Company, and the Warrant Agent is willing to so act, in
connection with the issuance, registration, transfer, exchange, redemption and
exercise of the Warrants; and

WHEREAS, the Company desires to provide for the form
and provisions of the Warrants, the terms upon which they shall be issued and
exercised, and the respective rights, limitation of rights, and immunities of
the Company, the Warrant Agent, and the holders of the Warrants; and

WHEREAS, all acts and things have been done and
performed which are necessary to make the Warrants, when executed on behalf of
the Company and countersigned by or on behalf of the Warrant Agent, as provided
herein, the valid, binding and legal obligations of the Company, and to
authorize the execution and delivery of this Agreement.

NOW, THEREFORE, in consideration of the mutual
agreements herein contained, the parties hereto agree as follows:

1.                                       Appointment
of Warrant Agent.  The Company hereby
appoints the Warrant Agent to act as agent for the Company for the Warrants,
and the Warrant Agent hereby accepts such appointment and agrees to perform the
same in accordance with the terms and conditions set forth in this Agreement.

 1
 

2.                                       Warrants.

2.1                                 Form
of Warrants.  Each Public Warrant,
Placement Warrant and Underwriters’ Warrant shall be (i) issued in registered
form only, (ii) in substantially the forms of Exhibit A-1, Exhibit
A-2 and Exhibit A-3, hereto, respectively, the provisions of which
are incorporated herein, and (iii) signed by, or bear the facsimile signature
of, the Chairman of the Board or Chief Executive Officer of the Company and
shall bear a facsimile of the Company’s seal. 
In the event the person whose facsimile signature has been placed upon
any Warrant shall have ceased to serve in the capacity in which such person
signed the Warrant before such Warrant is issued, it may be issued with the
same effect as if he or she had not ceased to be such at the date of issuance.

2.2                                 Effect
of Countersignature.  Unless and
until countersigned by the Warrant Agent pursuant to this Agreement, a Warrant
shall be invalid and of no effect and may not be exercised by the holder thereof.

2.3                                 Registration.

2.3.1                        Warrant
Register.  The Warrant Agent shall
maintain books (the “Warrant Register”) for the registration of original
issuance and the registration of transfer of the Warrants.  Upon the initial issuance of the Warrants,
the Warrant Agent shall issue and register the Warrants in the names of the
respective holders thereof in such denominations and otherwise in accordance
with instructions delivered to the Warrant Agent by the Company.

2.3.2                        Registered
Holder.  Prior to due presentment for
registration of transfer of any Warrant, the Company and the Warrant Agent may
deem and treat the person in whose name such Warrant shall be registered upon
the Warrant Register (the “Registered Holder”), as the absolute owner of
such Warrant and of each Warrant represented thereby (notwithstanding any
notation of ownership or other writing on the Warrant Certificate made by
anyone other than the Company or the Warrant Agent), for the purpose of any
exercise thereof, and for all other purposes, and neither the Company nor the
Warrant Agent shall be affected by any notice to the contrary.

2.4                                 Detachability
of Warrants.  The securities
comprising the Units will not be separately transferable until 90 days after
the later of the consummation by Company of a business combination (as
described more fully in the Registration Statement, a “Business Combination”),
or one day after the effective date of the Registration Statement (the “Detachment
Date”), unless Morgan Joseph informs the Company of its decision to allow
earlier separate trading, but in no event will Morgan Joseph allow separate
trading of the securities comprising the Units until the Company files a
Current Report on Form 8-K, which includes an audited balance sheet reflecting
the receipt by the Company of the gross proceeds of the Public Offering
including the proceeds received by the Company from the exercise of the
underwriters’ over-allotment option, if the over-allotment option is exercised
prior to the filing of the Form 8-K.

 2
 

2.5                                 Public
Warrants, Underwriters’ Warrants and Placement Warrants. Except as
otherwise set forth herein, the Placement Warrants and the Underwriters’
Warrants shall have the same terms and be in the same form as the Public
Warrants.

3.                                       Terms
and Exercise of Warrants

3.1                                 Warrant
Price.  Each Public Warrant and
Placement Warrant shall, when countersigned by the Warrant Agent, entitle the
registered holder thereof, subject to the provisions of such Public Warrant and
Placement Warrant, respectively, and subject to this Agreement, to purchase
from the Company the number of shares of Common Stock stated herein, at the
price of $6.00 per whole share, subject to the adjustments provided in Section
4 hereof and in the last sentence of this Section 3.1.  Each Underwriters’ Warrant shall, when
countersigned by the Warrant Agent, entitle the registered holder thereof,
subject to the provisions of such Underwriters’ Warrant, and subject to this
Agreement, to purchase from the Company the number of shares of Common Stock
stated therein, at the price of $7.00 per whole share, subject to the
adjustments provided in Section 4 hereof and in the last sentence of this
Section 3.1.  The term “Warrant Price” as
used in this Agreement refers to the price per share at which Common Stock may
be purchased at the time a Warrant is exercised, provided that any such
adjustment shall be identical in percentage terms among all of the Warrants.

3.2                                 Duration
of Warrants. A Warrant may be exercised only during the period (the “Exercise
Period”) commencing on the later to occur of (a) the consummation by the
Company of a Business Combination, or (b)         ,
2008, and terminating at 5:00 p.m., New York City time on the earlier to occur
of (i)              ,
2011 or, if applicable, (ii) the date fixed for redemption of the Warrants as
provided in Section 6 of this Agreement (the “Expiration Date”).  Except with respect to the right to receive
the Redemption Price (as set forth in Section 6 hereunder), each Warrant not
exercised on or before the Expiration Date shall become void, and all rights
thereunder and all rights in respect thereof under this Agreement shall cease
at the close of business on the Expiration Date, provided that any such
extension shall be identical in duration among all of the Warrants.

3.3                                 Exercise
of Warrants.

3.3.1                        Payment.  Subject to the provisions of the Warrants and
this Agreement, a Warrant, when countersigned by the Warrant Agent, may be
exercised by the Registered Holder thereof by surrendering it, at the office of
the Warrant Agent, or at the office of its successor as Warrant Agent, in the
Borough of Manhattan, City and State of New York, with the subscription form,
as set forth in the Warrants, duly executed, and by paying in full, in lawful
money of the United States, in cash, good certified check or good bank draft
payable to the order of the Company, the Warrant Price for each full share of
Common Stock as to which the Warrant is exercised and any and all applicable
taxes due in connection with the exercise of the Warrant, the exchange of the
Warrant for the Common Stock, and the issuance of the Common Stock.

3.3.2                        Issuance
of Certificates.  As soon as
practicable after the exercise of any Warrant and the clearance of the funds in
payment of the Warrant Price, the Company shall issue to the Registered Holder
of such Warrant a certificate or certificates for the number of full shares of
Common Stock to which he, she or it is entitled, registered in such name or
names as may be 

 3
 

directed by
him, her or it, and if such Warrant shall not have been exercised in full, a
new countersigned Warrant for the number of shares as to which such Warrant
shall not have been exercised. 
Notwithstanding the foregoing, the Company shall not be obligated to
deliver any securities pursuant to the exercise of a Warrant unless (i) a
registration statement under the Act with respect to the Common Stock issuable
upon such exercise is effective, or (ii) in the opinion of counsel to the
Company, the exercise of the Warrants is exempt from the registration
requirements of the Act and such securities are qualified for sale or exempt
from qualification under applicable securities laws of the states or other
jurisdictions in which the Registered Holders reside.  Warrants may not be exercised by, or securities
issued to, any Registered Holder in any state in which such exercise or
issuance would be unlawful.  In no event
will the registered holder of a Warrant be entitled to receive a net-cash
settlement or other consideration in lieu of physical settlement in shares of
Common Stock if the Common Stock underlying the Warrants is not covered by an
effective registration statement. Accordingly, the Warrants may expire
unexercised and worthless if a current registration statement covering the
Common Stock is not effective.

3.3.3                        Valid
Issuance.  All shares of Common Stock
issued upon the proper exercise of a Warrant in conformity with this Agreement
shall be validly issued, fully paid and nonassessable.

3.3.4                        Date
of Issuance. Each person in whose name any such certificate for shares of
Common Stock is issued shall for all purposes be deemed to have become the
holder of record of such shares on the date on which the Warrant was
surrendered and payment of the Warrant Price was made, irrespective of the date
of delivery of such certificate, except that, if the date of such surrender and
payment is a date when the stock transfer books of the Company are closed, such
person shall be deemed to have become the holder of such shares at the close of
business on the next succeeding date on which the stock transfer books are
open.

4.                                       Adjustments.

4.1                                 Stock
Dividends - Split Ups.  If after the
date hereof, and subject to the provisions of Section 4.6 below, the number of
outstanding shares of Common Stock is increased by a stock dividend payable in
shares of Common Stock, or by a split up of shares of Common Stock, or other
similar event, then, on the effective date of such stock dividend, split up or
similar event, the number of shares of Common Stock issuable on exercise of
each Warrant shall be increased in proportion to such increase in outstanding
shares of Common Stock.

4.2                                 Aggregation
of Shares.  If after the date hereof,
and subject to the provisions of Section 4.6, the number of outstanding shares
of Common Stock is decreased by a consolidation, combination, reverse stock
split or reclassification of shares of Common Stock or other similar event,
then, on the effective date of such consolidation, combination, reverse stock
split, reclassification or similar event, the number of shares of Common Stock
issuable on exercise of each Warrant shall be decreased in proportion to such
decrease in outstanding shares of Common Stock.

4.3                                 Adjustments
in Warrant Price.  Whenever the
number of shares of Common Stock purchasable upon the exercise of the Warrants
is adjusted, as provided in Section 4.1 and 4.2 

 4
 

above, the
Warrant Price shall be adjusted (to the nearest cent) by multiplying such
Warrant Price immediately prior to such adjustment by a fraction (x) the
numerator of which shall be the number of shares of Common Stock purchasable
upon the exercise of the Warrants immediately prior to such adjustment, and (y)
the denominator of which shall be the number of shares of Common Stock so
purchasable immediately thereafter.

4.4                                 Replacement
of Securities upon Reorganization, etc. 
In case of any reclassification or reorganization of the outstanding
shares of Common Stock (other than a change covered by Section 4.1 or 4.2
hereof or that solely affects the par value of such shares of Common Stock), or
in the case of any merger or consolidation of the Company with or into another
corporation (other than a consolidation or merger in which the Company is the
continuing corporation and that does not result in any reclassification or reorganization
of the outstanding shares of Common Stock), or in the case of any sale or
conveyance to another corporation or entity of the assets or other property of
the Company as an entirety or substantially as an entirety in connection with
which the Company is dissolved, the Warrant holders shall thereafter have the
right to purchase and receive, upon the basis and upon the terms and conditions
specified in the Warrants and in lieu of the shares of Common Stock of the
Company immediately theretofore purchasable and receivable upon the exercise of
the rights represented thereby, the kind and amount of shares of stock or other
securities or property (including cash) receivable upon such reclassification,
reorganization, merger or consolidation, or upon a dissolution following any
such sale or transfer, that the Warrant holder would have received if such
Warrant holder had exercised his, her or its Warrant(s) immediately prior to
such event; and if any reclassification also results in a change in shares of Common
Stock covered by Section 4.1 or 4.2, then such adjustment shall be made
pursuant to Sections 4.1, 4.2, 4.3 and this Section 4.4. The provisions of this
Section 4.4 shall similarly apply to successive reclassifications,
reorganizations, mergers or consolidations, sales or other transfers.

4.5                                 Notices
of Changes in Warrant.  Upon every
adjustment of the Warrant Price or the number of shares issuable on exercise of
a Warrant, the Company shall give written notice thereof to the Warrant Agent,
which notice shall state the Warrant Price resulting from such adjustment and
the increase or decrease, if any, in the number of shares purchasable at such
price upon the exercise of a Warrant, setting forth in reasonable detail the
method of calculation and the facts upon which such calculation is based.  Upon the occurrence of any event specified in
Sections 4.1, 4.2, 4.3 or 4.4, then, in any such event, the Company shall give
written notice to the Warrant holder, at the last address set forth for such
holder in the Warrant Register, of the record date or the effective date of the
event.  Failure to give such notice, or
any defect therein, shall not affect the legality or validity of such event.

4.6                                 No
Fractional Shares.  Notwithstanding
any provision contained in this Agreement to the contrary, the Company shall
not issue fractional shares upon exercise of Warrants.  If, by reason of any adjustment made pursuant
to this Section 4, the holder of any Warrant would be entitled, upon the
exercise of such Warrant, to receive a fractional interest in a share, the
Company shall, upon such exercise, round up to the nearest whole number the
number of the shares of Common Stock to be issued to the Warrant holder.

4.7                                 Extraordinary
Dividend.  If the Company, at any
time while the Warrants are outstanding and unexpired, shall pay a dividend in
cash or securities to the holders of the

 5
 

Common Stock (or shares of the Company’s capital stock into which the
Warrants are convertible), then upon the exercise of the Warrants, the
registered holder shall be entitled to a proportionate share of any such
dividend as if the shares of Common Stock purchased upon exercise hereof by
such registered holder had been purchased and outstanding on the record date
fixed for the determination of the holders of the Common Stock entitled to
receive such dividend.

4.8                                 Forms of Warrants.  The form of the Public Warrant, Placement
Warrant and Underwriters’ Warrant need not be changed because of any adjustment
pursuant to this Section 4, and Warrants issued after such adjustment may state
the same Warrant Price and the same number of shares as is stated in the
Warrants initially issued pursuant to this Agreement.  However, the Company may at any time in its
sole discretion make any change in the form of any Warrant that the Company may
deem appropriate and that does not affect the substance thereof, and any
Warrant thereafter issued or countersigned, whether in exchange or substitution
for an outstanding Warrant or otherwise, may be in the form as so changed.

5.                                       Transfer
and Exchange of Warrants.

5.1                                 Transfer of
Warrants.  Prior to the Detachment
Date, the Public Warrants may be transferred or exchanged only together with
the Unit in which such Warrant is included, and only for the purpose of
effecting, or in conjunction with, a transfer or exchange of such Unit.
Furthermore, each transfer of a Public Unit on the register relating to such
Units shall operate also to transfer the Warrants included in such Unit. From
and after the Detachment Date this Section 5.1 will have no further force and
effect.

5.2                                 Registration of
Transfer.  The Warrant Agent shall
register the transfer, from time to time, of any outstanding Warrant upon the
Warrant Register, upon surrender of such Warrant for transfer, properly
endorsed with signatures properly guaranteed and accompanied by appropriate
instructions for transfer.  Upon any such
transfer, a new Warrant representing an equal aggregate number of Warrants
shall be issued and the old Warrant shall be cancelled by the Warrant
Agent.  The Warrants so cancelled shall
be delivered by the Warrant Agent to the Company from time to time upon
request.

5.3                                 Procedure for
Surrender of Warrants.  Warrants may
be surrendered to the Warrant Agent, together with a written request for
exchange or transfer, and thereupon the Warrant Agent shall issue in exchange
therefor one or more new Warrants as requested by the Registered Holder of the
Warrants so surrendered, representing an equal aggregate number of Warrants;
provided, however, that in the event that a Warrant surrendered for transfer
bears a restrictive legend, the Warrant Agent shall not cancel such Warrant and
issue new Warrants in exchange therefor until the Warrant Agent has received an
opinion of counsel for the Company stating that such transfer may be made and
indicating whether the new Warrants must also bear a restrictive legend.

5.4                                 Fractional Warrants.  The Warrant Agent shall not be required to
effect any registration of transfer or exchange which will result in the
issuance of a warrant certificate for a fraction of a warrant.

 6
 

5.5                                 Service Charges.  No service charge shall be made for any
exchange or registration of transfer of Warrants.

5.6                                 Warrant Execution
and Countersignature.  The Warrant
Agent is hereby authorized to countersign and to deliver, in accordance with
the terms of this Agreement, the Warrants required to be issued pursuant to the
provisions of this Section 5, and the Company, whenever required by the Warrant
Agent, will supply the Warrant Agent with Warrants duly executed on behalf of
the Company for such purpose.

5.7                                 Placement Warrants.  Notwithstanding anything herein to the
contrary, the Warrant Agent shall not register for transfer any Placement
Warrants until after the consummation of the Company’s initial business
combination, except for (a) transfers of Placement Warrants resulting from the
death of any of the holders thereof, (b) transfers by operation of law, (c) any
transfer for estate planning purposes to persons immediately related to the
transferor by blood, marriage or adoption, or (d) transfers to any trust solely
for the benefit of such transferor and/or the persons described in the
preceding clause, on condition that prior to such registration for transfer,
the Warrant Agent shall be presented with written documentation pursuant to
which each permitted transferee or the trustee or legal guardian for each
permitted transferee agrees to be bound by the terms of the Purchase Agreement.

6.                                       Redemption.

6.1                                 Redemption.  Subject to Sections 6.4 and 6.5 hereof, the
Company may, at its option, redeem not less than all of the outstanding
Warrants at any time after they become exercisable and prior to their
expiration, at the office of the Warrant Agent, upon the notice referred to in
Section 6.2, at the price of $.01 per Warrant (the “Redemption Price”),
provided that the last sales price of the Common Stock has been at least $11.50
per share, on each of twenty (20) trading days within any thirty (30) trading
day period ending on the third business day prior to the date on which notice
of redemption is given; and provided, further, that there is an effective
registration statement with respect to the Common Stock to enable the exercise
of the Warrants during the period specified in Section 6.3 hereof.  The provisions of this Section 6.1 may not be
modified, amended or deleted without the prior written consent of Morgan
Joseph.

6.2                                 Date
Fixed for, and Notice of, Redemption. 
In the event the Company shall elect to redeem all of the Warrants, the
Company shall fix a date and time for the redemption  (the “Redemption Date”).  Notice of redemption shall be mailed by first
class mail, postage prepaid, by the Company not less than 30 days prior to the
Redemption Date to the Registered Holders of the Warrants to be redeemed at their
last addresses as they shall appear on the Warrant Register.  Any notice mailed in the manner herein
provided shall be conclusively presumed to have been duly given whether or not
the Registered Holder received such notice.

6.3                                 Exercise
After Notice of Redemption.  The
Warrants may be exercised in accordance with Section 3 of this Agreement at any
time after notice of redemption shall have been given by the Company pursuant
to Section 6.2 hereof and prior to the Redemption Date.  On and after the Redemption Date, the record
holder of the Warrants shall have no further rights except to receive, upon
surrender of the Warrants, the Redemption Price.

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6.4                                 Outstanding
Warrants Only.  The Company
understands that the redemption rights provided for by this Section 6 apply
only to outstanding Warrants.  To the
extent a person holds rights to purchase Warrants, such purchase rights shall
not be extinguished by redemption. 
However, once such purchase rights are exercised, the Company may redeem
the Warrants issued upon such exercise provided that the criteria for
redemption are met, including the opportunity of the Warrant holder to exercise
prior to redemption pursuant to Section 6.3. 
The provisions of this Section 6.4 may not be modified, amended or
deleted without the prior written consent of Morgan Joseph.

6.5                                 Exclusion
of  Placement Warrants. The Company understands that the redemption
rights provided for by this Section 6 do not apply to the Placement Warrants if
at the time of redemption such warrants continue to be held by the Initial
Purchaser.  However, once such Placement
Warrants are transferred, the Company may redeem the Placement Warrants
provided that the criteria for redemption are met, including the opportunity of
the Warrant holder to exercise prior to redemption pursuant to Section 6.3.

7.                                       Other
Provisions Relating to Rights of Holders of Warrants.

7.1                                 No
Rights as Stockholder.  A Warrant
does not entitle the Registered Holder thereof to any of the rights of a
stockholder of the Company, including, without limitation, the right to receive
dividends, or other distributions, exercise any preemptive rights to vote or to
consent or to receive notice as stockholders in respect of the meetings of
stockholders or the election of directors of the Company or any other matter.

7.2                                 Lost,
Stolen, Mutilated, or Destroyed Warrants. 
If any Warrant is lost, stolen, mutilated, or destroyed, the Company and
the Warrant Agent may on such terms as to indemnity or otherwise as they may in
their discretion impose (which shall, in the case of a mutilated Warrant,
include the surrender thereof), issue a new Warrant of like denomination,
tenor, and date as the Warrant so lost, stolen, mutilated, or destroyed.  Any such new Warrant shall constitute a
substitute contractual obligation of the Company, whether or not the allegedly
lost, stolen, mutilated, or destroyed Warrant shall be at any time enforceable
by anyone.

7.3                                 Reservation
of Common Stock.  The Company shall
at all times reserve and keep available a number of its authorized but unissued
shares of Common Stock that will be sufficient to permit the exercise in full
of all outstanding Warrants issued pursuant to this Agreement.

7.4                                 Registration
of Common Stock.  The Company agrees
that prior to the commencement of the Exercise Period, it shall file with the
SEC a post-effective amendment to the Registration Statement, or a new
registration statement, for the registration, under the Act,  of the Common Stock issuable upon exercise of
the Warrants, and it shall take such action as is necessary to qualify for
sale, in those states in which the Warrants were initially offered by the
Company, the Common Stock issuable upon exercise of the Warrants. In either
case, the Company will use its best efforts to cause the same to become
effective on or prior to the commencement of the Exercise Period and to
maintain the effectiveness of such registration statement until the expiration
of the Warrants in accordance with the provisions of this Agreement.  The provisions of this Section 7.4 may not be
modified, amended or deleted without the prior written consent of Morgan
Joseph.

 8
 

8.                                       Concerning
the Warrant Agent and Other Matters.

8.1                                 Payment
of Taxes.  The Company will from time
to time promptly pay all taxes and charges that may be imposed upon the Company
or the Warrant Agent in respect of the issuance or delivery of shares of Common
Stock upon the exercise of Warrants, but the Company shall not be obligated to
pay any transfer taxes in respect of the Warrants or such shares.

8.2                                 Resignation,
Consolidation, or Merger of Warrant Agent.

8.2.1                        Appointment
of Successor Warrant Agent.  The
Warrant Agent, or any successor to it hereafter appointed, may resign its
duties and be discharged from all further duties and liabilities hereunder
after giving sixty (60) days’ notice in writing to the Company.  If the office of the Warrant Agent becomes
vacant by resignation or incapacity to act or otherwise, the Company shall
appoint in writing a successor Warrant Agent in place of the Warrant
Agent.  If the Company shall fail to make
such appointment within a period of 30 days after it has been notified in
writing of such resignation or incapacity by the Warrant Agent or by the holder
of the Warrant (who shall, with such notice, submit his Warrant for inspection
by the Company), then the holder of any Warrant may apply to the Supreme Court
of the State of New York for the County of New York for the appointment of a
successor Warrant Agent at the Company’s cost. 
Any successor Warrant Agent, whether appointed by the Company  or by such court, shall be a corporation
organized and existing under the laws of the State of New York, in good
standing and having its principal office in the Borough of Manhattan, City and
State of New York, and authorized under such laws to exercise corporate trust
powers and subject to supervision or examination by federal or state
authority.  After appointment, any
successor Warrant Agent shall be vested with all the authority, powers, rights,
immunities, duties, and obligations of its predecessor Warrant Agent with like
effect as if originally named as Warrant Agent hereunder, without any further
act or deed; but if for any reason it becomes necessary or appropriate, the
predecessor Warrant Agent shall execute and deliver, at the expense of the
Company, an instrument transferring to such successor Warrant Agent all the
authority, powers, and rights of such predecessor Warrant Agent hereunder; and
upon request of any successor Warrant Agent the Company shall make, execute,
acknowledge, and deliver any and all instruments in writing for more fully and
effectually vesting in and confirming to such successor Warrant Agent all such
authority, powers, rights, immunities, duties, and obligations.

8.2.2                        Notice
of Successor Warrant Agent.  In the
event a successor Warrant Agent shall be appointed, the Company shall give
notice thereof to the predecessor Warrant Agent and the transfer agent for the
Common Stock not later than the effective date of any such appointment.

8.2.3                        Merger
or Consolidation of Warrant Agent. 
Any corporation into which the Warrant Agent may be merged or with which
it may be consolidated or any corporation resulting from any merger or
consolidation to which the Warrant Agent shall be a party shall be the
successor Warrant Agent under this Agreement without any further act.

 9
 

8.3                                 Fees
and Expenses of Warrant Agent.

8.3.1                        Remuneration.  The Company agrees to pay the Warrant Agent
reasonable remuneration for its services as such Warrant Agent hereunder, and
will reimburse the Warrant Agent upon demand for all expenditures that the
Warrant Agent may reasonably incur in the execution of its duties hereunder.

8.3.2                        Further
Assurances.  The Company agrees to
perform, execute, acknowledge, and deliver or cause to be performed, executed,
acknowledged, and delivered all such further and other acts, instruments, and
assurances as may reasonably be required by the Warrant Agent for the carrying
out or performing of the provisions of this Agreement.

8.4                                 Liability
of Warrant Agent.

8.4.1                        Reliance
on Company Statement.  Whenever in
the performance of its duties under this Agreement, the Warrant Agent shall
deem it necessary or desirable that any fact or matter be proved or established
by the Company prior to taking or suffering any action hereunder, such fact or
matter (unless other evidence in respect thereof be herein specifically
prescribed) may be deemed to be conclusively proved and established by a
statement signed by the Chief Executive Officer, Chairman of the Board or Chief
Financial Officer of the Company and delivered to the Warrant Agent.  The Warrant Agent may rely upon such
statement for any action taken or suffered in good faith by it pursuant to the
provisions of this Agreement.

8.4.2                        Indemnity.  The Warrant Agent shall be liable hereunder
only for its own negligence, willful misconduct or bad faith.  The Company agrees to indemnify the Warrant
Agent and save it harmless against any and all liabilities, including
judgments, costs and reasonable counsel fees, for anything done or omitted by
the Warrant Agent in the execution of this Agreement except as a result of the
Warrant Agent’s negligence, willful misconduct, or bad faith.

8.4.3                        Exclusions.  The Warrant Agent shall have no
responsibility with respect to the validity of this Agreement or with respect
to the validity or execution of any Warrant (except its countersignature
thereof); nor shall it be responsible for any breach by the Company of any
covenant or condition contained in this Agreement or in any Warrant; nor shall
it be responsible to make any adjustments required under the provisions of
Section 4 hereof or responsible for the manner, method, or amount of any such
adjustment or the ascertaining of the existence of facts that would require any
such adjustment; nor shall it by any act hereunder be deemed to make any
representation or warranty as to the authorization or reservation of any shares
of Common Stock to be issued pursuant to this Agreement or any Warrant or as to
whether any shares of Common Stock will when issued be valid and fully paid and
nonassessable.

8.5                                 Acceptance
of Agency.  The Warrant Agent hereby
accepts the agency established by this Agreement and agrees to perform the same
upon the terms and conditions herein set forth and among other things, shall account
promptly to the Company with respect to Warrants exercised and concurrently
account for, and pay to the Company, all moneys received

 10
 

by the Warrant
Agent for the purchase of shares of the Company’s Common Stock through the
exercise of Warrants.

8.6                                 Waiver.  The Warrant Agent hereby waives any and all
right, title, interest or claim of any kind (“Claim”) in or to any distribution
of the Trust Account (as defined in that certain Investment Management Trust
Agreement, dated as of the date hereof, by and between the Company and the
Warrant Agent as trustee thereunder), and hereby agrees not to seek recourse,
reimbursement, payment or satisfaction for any Claim against the Trust Account
for any reason whatsoever.

9.                                       Miscellaneous
Provisions.

9.1                                 Successors.  All the covenants and provisions of this
Agreement by or for the benefit of the Company or the Warrant Agent shall bind
and inure to the benefit of their respective successors and assigns.

9.2                                 Notices.  Any notice or other communication required or
which may be given hereunder shall be in writing and either be delivered
personally or by private national courier service, or be mailed, certified or
registered mail, return receipt requested, postage prepaid, and shall be deemed
given when so delivered personally or, if sent by private national courier
service, on the next business day after delivery to the courier, or, if mailed,
two business days after the date of mailing, as follows:

Arcade Acquisition Corp.

c/o Arcade Partners, LLC

62 La Salle Road, Suite 304

West Hartford, CT  06107

Attn: John M. Chapman, Chief Financial Officer

Any notice, statement or
demand authorized by this Agreement to be given or made by the holder of any
Warrant or by the Company to or on the Warrant Agent shall be sufficiently given
when so delivered if by hand or overnight delivery or if sent by certified mail
or private courier service five days after deposit of such notice, postage
prepaid, addressed (until another address is filed in writing by the Warrant
Agent with the Company), as follows:

Continental Stock Transfer & Trust Company

17 Battery Place

New York, New York 10004

Attn:                    Compliance
Department

with a copy in each case
to:

Loeb & Loeb LLP

345 Park Avenue

New York, New York 10154

Attn:                    Fran
Stoller, Esq.

 11
 

and

Kramer Levin Naftalis & Frankel LLP

1177 Avenue of the Americas

New York, New York 10036

Attn:  Christopher Auguste, Esq.

and

Morgan Joseph & Co. Inc.

600 Fifth Avenue, 19th Floor 

New York, New York 10020-2302

Attn:                    Tina Pappas

9.3                                 Applicable
law.  The validity, interpretation,
and performance of this Agreement and of the Warrants shall be governed in all
respects by the laws of the State of New York, without giving effect to
conflict of laws.  The Company hereby
agrees that any action, proceeding or claim against it arising out of or
relating in any way to this Agreement shall be brought and enforced in the
courts of the State of New York or the United States District Court for the
Southern District of New York, and irrevocably submits to such jurisdiction,
which jurisdiction shall be exclusive. 
The Company hereby waives any objection to such exclusive jurisdiction
and that such courts represent an inconvenient forum.  Any such process or summons to be served upon
the Company may be served by transmitting a copy thereof by registered or
certified mail, return receipt requested, postage prepaid, addressed to it at
the address set forth in Section 9.2 hereof. Such mailing shall be deemed
personal service and shall be legal and binding upon the Company in any action,
proceeding or claim.

9.4                                 Persons
Having Rights under this Agreement. 
Nothing in this Agreement expressed and nothing that may be implied from
any of the provisions hereof is intended, or shall be construed, to confer
upon, or give to, any person or corporation other than the parties hereto and
the Registered Holders of the Warrants and, for the purposes of Sections 6.1,
6.4, 7.4, 9.2 and 9.8 hereof, Morgan Joseph, any right, remedy, or claim under
or by reason of this Agreement or of any covenant, condition, stipulation,
promise, or agreement hereof.  Morgan
Joseph shall be deemed to be a third-party beneficiary of this Agreement with
respect to Sections 6.1, 6.4, 7.4, 9.2 and 9.8 hereof. All covenants,
conditions, stipulations, promises, and agreements contained in this Agreement
shall be for the sole and exclusive benefit of the parties hereto (and Morgan
Joseph with respect to the Sections 6.1, 6.4, 7.4, 9.2 and 9.8 hereof) and
their successors and assigns and of the Registered Holders of the Warrants.

9.5                                 Examination
of this Agreement.  A copy of this
Agreement shall be available at all reasonable times at the office of the
Warrant Agent in the Borough of Manhattan, City and State of New York, for
inspection by the Registered Holder of any Warrant. The Warrant Agent may
require any such holder to submit his Warrant for inspection by it.

9.6                                 Counterparts.  This Agreement may be executed in any number
of counterparts and each of such counterparts shall for all purposes be deemed
to be an original, and all such counterparts shall together constitute but one
and the same instrument.

 12
 

9.7                                 Effect
of Headings.  The Section headings
herein are for convenience only and are not part of this Agreement and shall
not affect the interpretation thereof.

9.8                                 Amendments.  This Agreement may be amended by the parties
hereto without the consent of any Registered Holder for the purpose of curing
any ambiguity, or of curing, correcting or supplementing any defective
provision contained herein or adding or changing any other provisions with
respect to matters or questions arising under this Agreement as the parties may
deem necessary or desirable and that the parties deem shall not adversely
affect the interest of the Registered Holders. 
All other modifications or amendments, including any amendment to
increase the Warrant Price or shorten the Exercise Period, shall require the
written consent of each of the Company, Morgan Joseph and the Registered
Holders of a majority of the then outstanding Warrants.  Notwithstanding the foregoing, the Company
may lower the Warrant Price or extend the duration of the Exercise Period in
accordance with Sections 3.1 and 3.2, respectively, without such consent.

9.9                                 Severability.  This Agreement shall be deemed severable, and
the invalidity or unenforceability of any term or provision hereof shall not
affect the validity or enforceability of this Agreement or of any other term or
provision hereof. Furthermore, in lieu of any such invalid or unenforceable
term or provision, the parties hereto intend that there shall be added as a
part of this Agreement a provision as similar in terms to such invalid or
unenforceable provision as may be possible and be valid and enforceable.

 13
 

IN WITNESS
WHEREOF, this Agreement has been duly executed by the parties hereto as of the
day and year first above written.

	
  Attest:

  	
   

  	
  ARCADE ACQUISITION CORP. 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Jonathan Furer 

  
	
   

  	
   

  	
   

  	
  Title: Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
  CONTINENTAL STOCK TRANSFER & TRUST COMPANY 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
					

 

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