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V. <br />Default <br />5.1 In the event that (a) the Improvements for which an abatement has been granted <br />are not completed in accordance with this Agreement or the capital expenditure for the <br />Improvements does not meet the amount required herein; or (b) Owner fails to continuously <br />maintain and operate a vibrant and active pipe fabrication, coating, engineering, design and <br />construction plant in Paris, Texas during the term of this Agreement; or (c) Owner allows its <br />ad 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 (d) Owner <br />materially breaches any of the other terms and conditions of this Agreement, then Owner shall <br />be in default of this Agreement. In the event the Owner defaults in its performance of either <br />(a), (b), (c) or (d) above, then the City shall give the Owner written notice of such default and <br />if 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 12.3. <br />5.2 As liquidated damages in the event of default, and in accordance with the <br />requirements of Section 312.205(a)(4) of the Tax Code of the State of Texas, all taxes which <br />otherwise would have been paid to the CITY without the benefit of abatement, together with <br />interest to be charged at the statutory rate for delinquent taxes as determined by Section 33.01 <br />of the Property Tax Code of the State of Texas, with all penalties permitted by the Property <br />Redevelopment and Tax Abatement Act and the Property Tax Code of the State of Texas, shall <br />be recaptured and will become a debt to the City and shall be due, owing, and paid to the City <br />within sixty (60) days of the expiration of the above - mentioned applicable cure period as the <br />sole remedy of the City, subject to any and all lawful offsets, settlements, deductions, or <br />credits to which Owner may be entitled. The parties acknowledge that actual damages in the <br />event of default and termination would be speculative and difficult to determine. <br />VI. <br />Real and Personal Property Tax Abatement <br />6.1 Subject to the terms and conditions of this Agreement, and subject to the rights <br />and holders of any outstanding bonds of the City, one hundred percent (100 %) of the ad <br />valorem property taxes which are assessed on the Improvements described herein and <br />otherwise owed to the City for the tax years 2016 through and including 2025 shall be abated. <br />Said abatement shall be one hundred percent (100 %) of the taxes assessed upon the completed <br />value of the Improvements to be constructed in accordance with this Agreement. There shall <br />be no abatement of City taxes on Owner's Real or Personal Property in existence prior to the <br />effective date of this Agreement. <br />6.2 Subject, however, to Owner's rights to protest such value of Improvements and <br />cause it to be adjusted as is provided for under the applicable laws of the State of Texas. The <br />ad valorem taxes assessed against the Improvements described herein shall continue to be <br />abated at 100% of their assessed value for each year of the ten (10) year term of this <br />Agreement (i.e. calendar years 2016 through 2025). This tax abatement shall be implemented <br />and enforced in accordance with all applicable state and local laws and regulations or valid <br />3 <br />