2006-072-RES-Tax Abatement Kimberely Clark Tax Abatement

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the legal procedures for protest or contest of any such ad valorem taxes; or (c) Owner materially breaches any of the other tenns and conditions of this Agreement, then this Agreement shall be in default. In the event the Owner defaults in its perfonnance of either (a), (b) or (c) 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 tenninated 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 detennined by Section 33.01 of the Property Tax Code of the State of Texas, with all penalties pennitted 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 tennination would be speculative and difficult to detennine. VII. Tax Abatement 7.1 Subject to the tenns and conditions of this Agreement, and subject to the rights and holders of any outstanding bonds of the City, a portion of ad valorem Property taxes from the Property 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 increased value of the Improvements made by Owner to the Property described in Section III of this Agreement, over the value in the year in which this Agreement is executed, in accordance with the tenns of this Agreement and all applicable state and local regulations or valid waivers 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 of taxes finally detennined to be due as a result of any such protest or contest. For the purposes of this Agreement, the initial value of the existing real property (not subject to abatement) 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 the Agreement is executed, said amount being $15,244,600 for Land and Buildings. The current abatement which is the subject of this Agreement shall extend for a period of seven (7) years beginning January 1, 2008. Notwithstanding the term of the tax abatement expressed in the foregoing sentence, this tax abatement by the City to the Owner with respect to the Property and the Improvements may be extended at the option of the Owner for an additional three (3) years in the following manner and upon the following condition: (i) Not later than July 1, 2014, the Owner requests an extension of this tax abatement by written notice to the City for the additional three year period; and (ii) In the foregoing written notice, the plant manager of the Paris, Texas, plant (or an officer of the Owner) certifies that the Paris, Texas, plant 4