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Red Arrow Development Agt

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					         AGREEMENT BETWEEN RED ARROW PRODUCTS COMPANY, INC.
                    AND THE CITY OF RHINELANDER
                     FOR ECONOMIC DEVELOPMENT

This agreement dated this _____ day of _______________, 1994, is made and entered into
between RED ARROW PRODUCTS COMPANY, INC. ("Red Arrow"), a Wisconsin
corporation, and the City of Rhinelander, a Wisconsin municipal corporation ("City"), for
purposes of facilitating the location and construction by Red Arrow of a manufacturing facility in
the City's Air Industrial Park.

I.     In the interest of attracting new business opportunities, expanding the area employment
       base, and serving as a specific inducement for Red Arrow to commit to the location and
       construction of a manufacturing facility in the Rhinelander Air Industrial Park, the City
       agrees to provide the following items and support at no cost to Red Arrow, except as
       specifically provided:

       A.      A parcel of approximately twenty (20) acres, with access to a frontage road which
       connects to U.S. Highway 8, and southwest of the Rhinelander-Oneida County Airport,
       as more particularly described on Exhibit A attached hereto and by this reference, made a
       part hereof.

1.     The site shall be transferred to Red Arrow by warranty deed free and clear of all liens and
       encumbrances, except as to a restrictive covenant as to mining on the property for a
       period of fifty (50) years, and as to the restriction contained in paragraph II hereof, and
       zoned for I-3, Industrial Use. At the time of such transfer, the City will make such
       representations as are customary in commercial land transactions.

2.     Red Arrow acknowledges that the City will maintain a wooded buffer zone from which
       no trees will be removed, of no less than fifty (50) feet from the existing Highway 8
       right-of-way, to the access road referred to paragraph I B 1 below.

3.     The City shall retain a sixty (60) foot right-of-way for public street purposes. This 60-
       foot right-of-way is shown on Exhibit A attached hereto, and is the paved access road
       referred to in paragraph I B 1 below.

       B.      Transportation infrastructure to service the plant site as follows:

1.     A paved access road from U.S. Highway 8 into the property, transversing the Red Arrow
       parcel and approximately to the middle of the property, twenty-four (24) feet in width.
       Such road shall be designated as a City street.

2.     Red Arrow agrees that the access road may be extended and serve other sites within the
       proposed industrial park area.

       C.      Municipal water and sewer service provided by the City, as follows:

             1.      Extension of a 12-inch diameter water main from the Rhinelander
       municipal water system, along the City right-of-way area abutting the parcel of Red



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      Arrow. The number and placement of any hydrants or tee connections will be
      determined by the City.

2.    Extension of an 8-inch diameter sanitary sewer main, also in or along the municipal right-
      of-way which abuts the parcel transferred to Red Arrow.

3.    Red Arrow shall be responsible for the construction and maintenance of sewer and water
      laterals from the City mains to and into its building.

      D.     Red Arrow will be solely responsible for all costs of site improvements on the
      property described in Exhibit A.

II.   In exchange for providing the infrastructure inducements and support previously
      described, Red Arrow makes the following commitments to the City:

      A.      Red Arrow represents that it will construct and equip a manufacturing plant for
      the production of a liquid smoke product. The cost to construct and equip the
      manufacturing facility will equal or exceed $6,000,000. Red Arrow guarantees that it
      will substantially comply with the afore-stated cost of the construction and equipment,
      and that the physical structures will have an approximate total area 40,000 square feet.
      Red Arrow further represents that it will provide twenty-four (24) full-time jobs within
      two (2) years after the construction and start-up of the manufacturing facility.

      B.      Red Arrow represents that the manufacturing plant referred to above will be
      constructed in accordance with the highest concern possible for the environment. Red
      Arrow represents that its liquid waste treatment plant will be a three-part pre-treatment
      system, as described on the documents attached to this agreement as Exhibit B. Red
      Arrow may substitute an equivalent system for the system referred to in Exhibit B. The
      pre-treatment system selected by Red Arrow will require approval by the City of
      Rhinelander Wastewater Superintendent and Common Council of the City of
      Rhinelander. This approval shall not be unreasonably withheld, and will be based upon
      representations by Red Arrow as to the level of pre-treatment that is expected from the
      three-part pre-treatment system as referred to in Exhibit B. The air emissions treatment
      shall include a biofilter, which will be built substantially in accordance with the
      specifications contained in Exhibit C attached hereto. Red Arrow may substitute an
      alternate system, equivalent to the system referred to in Exhibit C, upon approval by the
      Common Council of the City of Rhinelander.

      C.     Should Red Arrow subsequently fail to meet its commitment under paragraph II
      A, above within two (2) years of the date of this agreement, the following shall occur:

1.    If the manufacturing facility is not constructed, ownership of the parcel described in
      Exhibit A shall revert to the City.

2.    If Red Arrow constructs its manufacturing facility, but within two (2) years of
      construction, does not meet its quota of twenty-four (24) employees, Red Arrow will pay
      the City of Rhinelander $10,000 for each employee less than twenty-four (24) employees.
      In no case may the City recover more money than the cost to the City for improvements



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      of land, street, sewer and water.

      D.      Red Arrow agrees that if it occupies the site for less than five (5) years, and at any
      time an owner of the site to be acquired by Red Arrow under this agreement fails to pay
      any property tax properly assessed against the site, Red Arrow will pay to the City that
      portion of the unpaid property tax until the sum of all property taxes paid on the site
      equals the direct costs incurred by the City pursuant to this agreement.

      E.       Red Arrow agrees not to subdivide and sell, or subdivide and lease, any portion of
      the site conveyed to Red Arrow, without the express written consent of the City. This
      paragraph shall be waived in the event that Red Arrow has repaid the City's development
      costs by exercising one of its options set forth in this agreement to either reimburse the
      City for its costs, or through the payment, guarantee or other reimbursement of taxes.

IN WITNESS WHEREOF, the following parties have executed this agreement as of the date
specified.

RED ARROW PRODUCTS COMPANY, INC.

By:_____________________________                             Date:_______________

By:_____________________________                             Date:_______________



CITY OF RHINELANDER

By:_____________________________                             Date:_______________
  Gordon J. Waldvogel, Mayor

By:_____________________________                             Date:_______________
  Deborah J. Breivogel, Clerk




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