13 - TAX ABATEMENT AGREEMENT FOR POTTERS INDUSTRIES, LLC

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NOW, THEREFORE, The Parties hereto do mutually contract and agree as follows: I. Term 1.1 The effective date of this AGREEMENT is the 25th day of July, 2016, with tax abatement being effective from and after January 1, 2017, and terminating on December 31, 2026 (an abatement period of ten (10) years (the "ABATEMENT PERIOD ")). Said ABATEMENT PERIOD will terminate on December 31, 2026 regardless of when OWNER completes the IMPROVEMENTS described in Sections II and III hereinbelow or otherwise becomes eligible to receive the abatement set forth herein, which may result in the number of years in which tax is abated being fewer than ten (10) years. H. Area to be Improved 2.1 The IMPROVEMENTS consist of a new warehouse to be constructed upon the PROPERTY of OWNER and the addition and installation of manufacturing equipment and personal property described in Article III below within such buildings, all to be performed by OWNER at the OWNER'S plant in Paris, Lamar County, Texas. The IMPROVEMENTS shall be located upon and within the PROPERTY described in Exhibit B, attached hereto and made a part hereof for all purposes. The building being constructed as a portion of the IMPROVEMENTS are located as shown within the drawings also attached hereto as a part of Exhibit B. III. Improvements 3.1 The construction and installation of the IMPROVEMENTS will require engineering, design and construction work for the buildings where the new manufacturing equipment will be located, and the procurement and installation of the manufacturing equipment, utilities, electrical and mechanical facilities. The IMPROVEMENTS are being made to enable the OWNER to expand the production capacity of the low index glass production unit (previously installed in 2014 at OWNER'S Paris, Texas facility) by a minimum of 25% to meet anticipated demand. In addition to the construction of the new warehouse on the PROPERTY at a cost of $510,000.00, new machinery and equipment will be purchased and installed at PROPERTY, including a raw material silo, batch pit evacuation pump, furnace electric boost, four (4) bowl upgrades and two (2) new sifting lines, at an additional cost of $4,740,000.00. A total of approximately $5,250,000.00 will be spent by OWNER in making these IMPROVEMENTS to the PROPERTY. All such IMPROVEMENTS will be described in the CITY'S Certificate of Completion prepared after the completion and installation of such IMPROVEMENTS. The description shall be 2