1999-018-TAX ABATEMENT AGREEMENT, PARIS WAREHOUSE 107

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payment of money and cannot, with due diligence, be cured within a 90-day period due to cause beyond the control of the OWNER, this AGREEMENT may be modified or terminated by the CITY. Notice shall be in accordance with paragraph 14.3. As liquidated damages in the event of default, all taxes which otherwise would have been paid to the CITY without the benefit of abatement, togeiher 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, w'ith all penalties permitted by the Property Redevelopment and Tax Abatement Act and the Property Tax Code of the State of Texas, 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 dctermine. VII. Tax Abatement 7.1. It is ,understood and agreed between the parties that the PROPERTY, also known as Tax Reinvestment Zone Number Five, shall be appraised at market value prior to the construction and installation of the IMPROVEMENTS for the purposes of property tax assessment effective January I, 1999, and continued at market value without said IMPROVEMENTS until the expiration of this AGREEMENT. The CITY, acting under and pursuant to the said Texas Property Redevelopment and Tax Abatement Act, hereby covenants and agrees to abate: (a) all CITY real property taxes that would other wise be payable with respect to the IMPROVEMENTS, and (b) all CITY personal property taxes that would otherwise be payable with respect to all personal property, save and except inventory and supplies, that is brought onto the PROPERTY described in Exhibit "A" as a part of the improvement project herein described, for a primary period of five (5) years beginning January 1, 1999, with an option to extend said period for an additional two (2) years beginning January I, 2004, as hereinafter provided. VIII. Extension Option 8.1. In the event OWNER shall keep each and every agreement contained herein and do and perform all the obligations required of OWNER hereunder during the term of this AGREEMENT, an option is hereby given and granted to OWNER to renew and extend this AGREEMENT for an additional period of two (2) years from and after the l!xpiration of this AGREEMENT, said two (2) years beginning on the 1st day of January, 2004, and ending on the 31st day of December, 2005. TAX An^TI~MI~NT AGnF.I~MENT. J~ge 4