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herein within the Property), such existing employer may be eligible for tax abatement with <br />respect to such improvements to its real property or its new personal property even though <br />no new jobs or newly created minimum annual payroll are created. In such cases, <br />however, the Owner is encouraged to retain as many jobs and as much existing annual <br />payroll as is economically feasible for the existing employer to be and remain competitive <br />in its industry. <br />5.2 The Owner agrees to retain sufficient employment levels to efficiently <br />operate and support its plant operations during the term of this Tax Abatement Agreement. <br />VI. <br />Default <br />6.1 In the event that (a) the Improvements for which an abatement has been <br />granted are not completed in accordance with this Agreement or the expenditure for the <br />Improvements does not meet the amount required herein; or (b) Owner allows its ad <br />valorem taxes owed the City to become delinquent and fails to timely and properly follow <br />the legal procedures for protest or contest of any such ad valorem taxes; or (c) Owner <br />materially breaches any of the other terms and conditions of this Agreement, then this <br />Agreement shall be in default. In the event the Owner defaults in its performance of either <br />(a), (b) or (c) above, then the City shall give the Owner written notice of such default and if <br />the Owner has not cured such default within sixty (60) days of said written notice, this <br />Agreement may be modified or terminated by the City. Notice shall be in accordance with <br />paragraph 13.3. As liquidated damages in the event of default, and in accordance with the <br />requirements of Section 312.205 (a)(4) of the Property Tax Code of the State of Texas, all <br />taxes which otherwise would have been paid to the City without the benefit of abatement, <br />together with interest to be charged at the statutory rate for delinquent taxes as determined <br />by Section 33.01 of the Property Tax Code of the State of Texas, with all penalties permitted <br />by the Property Redevelopment and Tax Abatement Act and the Property Tax Code of the <br />State of Texas, shall be recaptured and will become a debt to the City and shall be due, <br />owing, and paid to the City within sixty (60) days of the expiration of the above-mentioned <br />applicable cure period as the sole remedy of the City, subject to any and all lawful offsets, <br />settlements, deductions, or credits to which Owner may be entitled. The parties acknowledge <br />that actual damages in the event of default and termination would be speculative and <br />difficult to determine. <br />VII. <br />Tax Abatement <br />7.1 Subject to the terms and conditions of this Agreement, and subject to the <br />rights and holders of any outstanding bonds of the City, a portion of ad valorem Property <br />taxes from the Property otherwise owed to the City shall be abated. Said abatement shall be <br />an amount equal to one hundred percent (100%) of the taxes assessed upon the increased <br />value of the Improvements made by Owner to the Property described in Section III of this <br />Agreement, over the value in the year in which this Agreement is executed, in accordance <br />with the terms of this Agreement and all applicable state and local regulations or valid <br />waivers thereof; provided that the Owner shall have the right to protest or contest any <br />assessment of the Property and said abatement shall be applied to the amount of taxes finally <br />