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R.C. §§5709.40 and 5709.41. The limitations provided in subsections (a) and (b) of this Section 6 shall not apply to business relocation from outside of the territorial boundaries of the District as defined in Section 3 above. Section 7. Income Tax Sharing for Moves Within the District. (a) The Parties agree that if any business with an annual gross payroll of more than $500,000 relocates from one Party (the "Losing Party's to another Party (the "Gaining Party', the Losing Party shall be entitled to receive from the Gaining Party, for a period of 5 years, 50 percent of future income tax revenue based upon payroll in existence immediately prior to the relocation. The Gaining Party's 50 percent share shall be calculated based upon the Gaining Party's employment -based tax rate as may be amended from time to time, minus the percentage that may be earmarked for a city/village's school district pursuant to city/village ordinance. The Gaining Party's 5 year income tax sharing obligation for any business that relocates during the term of this Agreement is a continuing obligation that shall survive the termination of this Agreement. (b) The 5 year tax sharing obligation may be earlier terminated or reduced if the Losing Party "backfills" space at the same payroll value with a similar business, as follows: (i) the business that moved jobs adds equivalent new payroll anywhere in the Losing Party's jurisdiction, this new payroll shall qualify as "backfill" for purposes of this Section 7; and (ii) if the moving business replaces part of the vacated space with new jobs and payroll, the aggregate employment -based income tax paid to the Losing Party will be deducted from this tax sharing obligation. Upon becoming aware that "backfilling" has occurred, the Losing Party shall provide the Gaining Party with written notice within 30 days as provided for in Section 20. For example, if new employees are hired anywhere in Cleveland by the relocated employer, the employment -based income tax from those employees that is paid to Cleveland shall reduce the amount to be paid by to Cleveland in an amount equal to the employment -based income tax paid by or on behalf of those employees. For purposes of the above example, "new" Cleveland employees are permanent employees who are hired due to the creation of new positions within Cleveland versus new or existing employees that are hired to fill existing vacant positions created by employee turnover, retirement, or other reason. Section S. Administration of Agreement. (a) After execution of this Agreement, Parties may provide that the income tax sharing provisions in this Agreement be administered jointly by and Cleveland, or by either the Central Collection Agency, Regional Income Tax Authority, or both. The administrator will be responsible for collecting annual employment and income tax data from a relocating business, calculating the aggregate employment and payroll, determining the annual income tax to be shared and determining if the agreement should be terminated due to occurrence of any of the triggering events. (b) If for any reason a relocating business is unable or unwilling to provide the payroll information necessary to make the tax sharing calculations specified in Section 7, the Parties agree to confer in good faith to determine an appropriate alternative calculation. Section 9. Access to Records; Audit. During the tax sharing period provided in Section 7, and Cleveland shall provide access to the other Party's tax withholding and estimated tax records related to the relocating business during normal business hours. Either Party, through its representatives or employees, shall be permitted to make and keep photocopies of portions of the other Party's records that pertain to such tax withholdings and estimates. Once a year, both 3