06&07 Tax Abatement Campbell Soup

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VI. Default 6.1 In the event that (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) the jobs required to be retained by OWNER in Section 5.3 above are not maintained in accordance with this AGREEMENT; 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 materially breaches any of the other terms and conditions of this AGREEMENT, then this AGREEMENT shall be in default. In the event the 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 paragraph 13.3. As liquidated damages in the event of default, and in accordance with the requirements of Section 312.205 (a)(4) of the Property 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 ofthe State of Texas, with all penalties permitted by the Property Redevelopment and Tax Abatement Act and the Property 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. Personal Property Tax Abatement 7. I 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. Said abatement shall be an amount equal to one hundred percent (100%) of the taxes assessed upon the completed value of the IMPROVEMENTS on January 1, of the year in which this tax abatement commences (i.e. January 1, 2007), with this tax abatement continuing at such percentage for each year during the ten (10) year term of this AGREEMENT. This tax abatement is exemplified in Exhibit D attached to this AGREEMENT. This tax abatement shall be in accordance with all applicable state and local regulations or valid waiver thereof; provided that the OWNER shall have the right to protest or contest any assessment of the PROPERTY, and said abatement shall be applied to the amount oftaxes finally determined to be due as a result of any such protest or contest. For the purposes of this AGREEMENT, the initial value of the existing property of the OWNER that is not. subject to tax abatement AND WHICH DOES NOT INCLUDE THE IMPROVEMENTS (as defined herein) shall be deemed to be the value as shown on the tax rolls of the Lamar County Appraisal District as of January 1 of the year in which this AGREEMENT is executed, said amount being $95,146,950.00 (Base Year Value), the same consisting of$12,225,460.00 for Land and Buildings, TAX ABATEMENT AGREEMENT. Page 4 ....'f-. ..