AMREP CORPORATION (NYSE:AXR) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement.
Reference is made to theQuarterly Report on Form 10-Q of AMREP
Corporation (the Company) for the quarter ended January 31, 2017,
which was filed with the Securities and Exchange Commission on
March 15, 2017, regarding legal proceedings seeking repayment by
Palm Coast Data LLC (PCD), a subsidiary of the Company, of
$3,000,000 received by PCD to an agreement with the State of
Florida (the Award Agreement) as part of the incentives made
available in connection with the Companys project, completed in
the second quarter of fiscal year 2011, to consolidate its
Fulfillment Services operations at its Palm Coast, Florida
location.
On May 4, 2017, PCD entered into a Settlement Agreement and
Mutual General Release (the Settlement Agreement) with the
Florida Department of Economic Opportunity (the State of
Florida). to the Settlement Agreement,
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PCD agreed to pay the State of Florida $1,763,000 as follows: (1) $163,000 within 30 days after May 4, 2017 and (2) 40 quarterly payments of $40,000 each, without interest, on the first business day of each calendar quarter, with the first payment of $40,000 scheduled to be made on October 1, 2017 and the last payment of $40,000 scheduled to be made on July 1, 2027; provided that, the timing of the payment of all such quarterly payments may be accelerated by the State of Florida following PCDs failure to timely pay any such amounts; |
| the Award Agreement was terminated; |
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each of the parties released all claims relating to the Award Agreement that the releasing party may have against the other party; and |
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the complaint filed in the Circuit Court of the Second Judicial Circuit in and for Leon County, Floridarelating to the Award Agreement will be dismissed and discontinued by the State of Florida. |
On May 4, 2017, the Company entered into a Guaranty Agreement
(the Guaranty) with the State of Florida. to the Guaranty, the
Company guaranteed the payment by PCD of amounts due to the State
of Florida under the Settlement Agreement.
The foregoing description of theSettlement Agreement and Guaranty
are summaries only and are qualified in all respects by the
provisions of such documents, copies of which are attached hereto
as Exhibits 10.1 and 10.2 and are incorporated herein by
reference.
Item 2.03 Creation of a Direct Financial Obligation or an
Obligation under an Off-Balance Sheet Arrangement of a
Registrant.
The information in Item1.01 of this Current Report on Form 8-K is
incorporated by reference into this Item2.03.
Item 9.01Financial Statements and Exhibits.
(d) Exhibits.
| ExhibitNumber | Description | |
| 10.1 |
Settlement Agreement and Mutual General Release, dated May 4, 2017, between the Florida Department of Economic Opportunity and Palm Coast Data LLC. |
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| 10.2 |
Guaranty Agreement, dated May 4, 2017, by AMREP Corporation for the benefit of the Florida Department of Economic Opportunity. |
About AMREP CORPORATION (NYSE:AXR)
Amrep Corporation is a holding company. The Company, through its subsidiaries, operates through two segments: real estate operations and fulfillment services. The Company conducts its real estate business through AMREP Southwest Inc. (AMREP Southwest) and its subsidiaries, with its activities occurring primarily in the City of Rio Rancho and certain adjoining areas of Sandoval County, New Mexico. The real estate operations include land sales and lease activities. Its fulfillment services is offered through its subsidiary Palm Coast Data LLC (Palm Coast) and its affiliates. Its fulfillment services business performs fulfillment and contact center services, including subscriber list and database management, payment and order processing and accounting, subscriber mailing services, customer service and contact center management, data processing and business intelligence solutions, print and digital marketing solutions, and product fulfillment warehousing, processing and distribution. AMREP CORPORATION (NYSE:AXR) Recent Trading Information
AMREP CORPORATION (NYSE:AXR) closed its last trading session up +0.07 at 5.85 with 91,423 shares trading hands.