The tax abatement is available only for a data-center project located on the defined Land within the City of El Paso reinvestment zone, limiting eligibility to that property and zone. located entirely within Reinvestment Zone No. 1

The company must commence clearing and grading within five years after the agreement’s effective date; otherwise, after notice and a 90-day cure period, the County may reduce the Phase 1 abatement period by one year for each delayed year. Commencement of Construction must occur within five (5) years

The project must receive a temporary or permanent certificate of occupancy by a deadline seven years after vertical construction begins, unless extended in writing or for force majeure. The company must also invest at least $800 million in qualified expenditures by that deadline; failure can result in termination and repayment of abated taxes. an Investment of at least Eight Hundred Million Dollars

To retain the full abatement after the employment commitment date, the company must provide and maintain at least 50 qualifying full-time jobs, with each job generally paying at least the applicable annual area median county wage. The commitment date is four years after the completion deadline, and job shortfalls can reduce or eliminate the abatement for that year. at least fifty (50) Full-Time Jobs

Expansion into additional abated phases requires at least $800 million of additional investment for each subsequent phase, and the agreement allows no more than five total phases. limited to five (5) Phases

During each abatement period, the company must file annual compliance certificates by April 30 and submit required completion, employment, and phase-investment reports. After notice and a second notice, the County may delay or withhold the abatement until missing reports are provided. due not later than April 30

The County may inspect the land and project improvements once per calendar year after reports are submitted, with at least 30 days’ written notice and up to two County employees, subject to company scheduling, escort, security, and confidentiality requirements. no more than once per calendar year

The company must pay all taxes that are not abated, including the remaining 20 percent of County ad valorem taxes on the land, improvements, and personal property. Delinquent County taxes not cured within 60 days can cause termination of the abatement for the affected phase. the remaining 20 percent

After the completion deadline, project improvements must be used, when in use, for a lawful commercial, business, retail, or industrial use related to supporting or operating data centers during the agreement’s term. used for a lawful use related to

During any abatement period, the company, an affiliate, or permitted assignee must own or lease the land and project improvements receiving the abatement. shall own or lease the Land and Project Improvements

Before the County can enter the abatement agreement, it must hold a public hearing and adopt a resolution finding that the County is eligible to participate in tax abatement in the reinvestment zone and that the agreement satisfies statutory and local requirements. may not enter into an abatement agreement until it adopts a resolution

The County grants an 80% abatement of its incremental real-property taxes on the land and improvements, based on increases over 2023 values, and an 80% abatement of County taxes on qualifying personal property. The company remains responsible for the un abated taxes, including the remaining 20%.

Each qualifying phase may receive its own 10-year abatement period, subject to the agreement's 35-year overall term. The company may designate up to five phases, and the phases' abatement periods may run concurrently or sequentially.

A subsequent phase can qualify for another abatement by meeting the Subsequent Investment Threshold of at least $800 million, using new real-property improvements, personal property, or both. No more than five total phases may receive abatements.

The agreement provides development flexibility by allowing the company to develop the project in phases over a period of years and to choose the order, rate, and timing of development in its sole discretion. Abatement is available only for improvements that are actually constructed or installed and meet the applicable investment requirements.

The initial project must reach at least $800 million in qualifying investment, and construction must commence within five years of the effective date. The completion deadline is seven years from commencement of vertical construction, subject to written extensions and force-majeure extensions.

Force majeure provisions extend applicable construction and completion deadlines for qualifying delays beyond the party's control, including permitting delays, utility delays or interruptions, labor shortages, adverse weather, environmental issues, mechanical failures, and inability to obtain required construction permits or approvals.

The County must use best efforts to expedite County permit, approval, map, plan, inspection, application, and other request reviews connected with the land and project improvements, including staff processing and actions by County boards and commissions.

The related Water and Wastewater Agreement provides that El Paso Water agrees to provide water and wastewater services and certain infrastructure for the project. The tax-abatement agreement identifies that agreement as part of the project's supporting arrangements.

During the agreement's term, the County may not add or modify County rules with the express or inferred intent to specifically or inequitably target the project, land, company, or data-center industry. If the County's tax-abatement policy changes, the policy in effect when the agreement was executed controls.

County staff may not recommend or support new taxes applicable solely to the project, company, land, computer-equipment operators, or the data-center industry, or taxes intended to specifically or inequitably target them.

The company may assign the agreement to an affiliate, future owner, or lessee without County consent, subject to written notice, and may assign rights and obligations to a lender for project financing without County consent. It may also use sale-and-leaseback arrangements while retaining the agreement's rights and obligations.

The agreement limits County remedies for most uncured company breaches to termination for the affected phase, and generally does not require repayment of previously received abatements. Repayment is specifically required if the County terminates for failure to meet the investment or completion requirements, or under the agreement's undocumented-worker provision.

Each phase is treated independently, so a default or termination affecting one phase does not affect the abatements or obligations for other phases. A default under this agreement also does not constitute a default under the separate 381 Program Agreement.