13 - TAX ABATEMENT AGREEMENT FOR POTTERS INDUSTRIES, LLC

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agrees to retain at least forty (40) full -time equivalent employees for the duration of this Agreement. An FTE is: (1) an individual working 40 hours per week in a job defined above; (2) a number of part-time jobs where the hours worked in each such job is less than 40 hours per week, made available by one employer and added together to total 40 hours per week. For example, fourteen (14) part-time jobs made available by one employer where all such part-time jobs added together require a total of 380 hours of work per week (but no such part time job requires 40 hours of work or more per week) will equal nine and one -half (9.5) FTE jobs (380 hours di,%ided by 40 hours per week equals 9.5). (3) FTE jobs do not require the employees to receive benefits from the employer. VI. Default 6.1 If (a) the IMPROVEMENTS for which an abatement has been granted are not completed in accordance with this AGREEMENT or the expenditure for the IMPROVEMENTS does not meet the amount required herein; or (b) OWNER fails to retain an average of at least forty (40) full -time equivalent employees for each year during the term of this AGREEMENT, said average to be calculated by adding the total number of employees for each month of the year as reported on the Texas Workforce Commission Employer's Quarterly Report and dividing that total by 12; or (c) OWNER allows its ad valorem taxes owed the CITY to become delinquent and fails to timely and properly follow the legal procedures for protest or contest of any such ad valorem taxes; or (d) OWNER breaches any of the other material terms, provisions or conditions of this AGREEMENT, then this AGREEMENT shall be in default. If OWNER defaults in its performance of either (a), (b),(c) or (d) above, then the CITY shall give the OWNER written notice of such default and if the OWNER has not cured such default within sixty (60) days of said written notice, this AGREEMENT may be modified or terminated by the CITY. Notice shall be in accordance with Section 13.3. As liquidated damages in the event of default, and in accordance with the requirements of Section 312.205 (a)(4) of the Tax Code of the State of Texas, all taxes which otherwise would have been paid to the CITY without the benefit of abatement, together with interest to be charged at the statutory rate for delinquent taxes as determined by Section 33.01 of the Property Tax Code of the State of Texas, with all penalties permitted by the Property Redevelopment and Tax Abatement Act and the Tax Code of the State of Texas, shall be recaptured and will become a debt to the CITY and shall be due, owing, and paid to the CITY within sixty (60) days of the expiration of the above - mentioned applicable cure period as the sole remedy of the CITY, subject to any and all lawful offsets, settlements, deductions, or credits to which OWNER may be entitled. The parties acknowledge that actual damages in the event of default and termination would be speculative and difficult to determine. VII. Real and Personal Property Tax Abatement 7.1 Subject to the terms and conditions of this AGREEMENT, and subject to the rights and holders of any outstanding bonds of the CITY, a portion of the ad valorem property taxes assessed upon the IMPROVEMENTS and otherwise owed to the CITY shall be abated during the Abatement Period set forth in this AGREEMENT. Said abatement shall be an amount equal to one hundred percent (100 %) of the taxes assessed upon the increased value of the 4