O-2010-3287 mutual termination/tax abatement agreement providing for the payment of abated 2007/2008 ad valorem taxes to La Porte

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MUTUAL TERMINATION OF TAX ABATEMENT AGREEMENT THE STATE OF TEXAS ~ ~ COUNTY OF HARRIS ~ THIS MUTUAL TERMINATION OF TAX ABATEMENT AGREEMENT is entered into by The City of La Porte, Texas ("City" herein), Packwell, Inc. (the "Lessee"), A Texas Corporation and Porter Road Venture, L.P. (the "Lessor"), a Texas limited partnership and the owner of taxable interests in real property located at 10016 Porter Road, La Porte, Texas 77571, also known as the La Porte Reinvestment Zone "B" (the "Property"). RECITALS: On July 10, 2006, City Council of La Porte, Texas approved a tax abatement agreement between the City and the Lessee and the Lessor to abate a portion of any increase in the certified appraised value of certain taxable property located in the Property, for a period of ten (10) years beginning on January 1, 2007; and The tax abatement agreement required that a certain minimum investment be made in the Property and that the Property meet a certain minimum valuation, both of which the Lessee acknowledges have not been met and that the Lessee will be unable to cure. Lessee and Lessor hereby request a mutual termination of tax abatement agreement conditioned upon the payment by Lessee of all City taxes previously abated for the tax years of 2007 and 2008; no City taxes have been abated for the tax year 2009. NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledge and confessed, the parties hereto agree as follows: TERMS: I. In accordance with TEX. TAX CODE ANN. ~~312.208(b) and 312.402(e), the tax abatement agreement approved by La Porte City Council on July 10, 2006 is terminated, conditioned upon the payment by Lessee of $116,678.16 to City, constituting the recapture of all City taxes due for the tax years 2007 and 2008, the receipt of which is evidenced by Exhibit A. 1