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located requesting exemption from any income tax imposed by the Board pursuant to Section I I (B) if all of the following apply: (a) The business operated within an unincorporated area of the District before the effective date of this Contract; (b) No owner of the business signed a petition described in ORC 715.72(J); (c) Neither the business nor its employees has derived or will derive any material benefit from the new, expanded, or additional services, facilities, or improvements described in the economic development plan for the District, or the material benefit that has, or will be derived is negligible in comparison to the income tax revenue generated from the net profits of the business and the income of employees of the business. The parties further acknowledge that as a contracting party they may submit a written answer to the complaint to the court within thirty (30) days after notice of the complaint was served upon them. Such a contracting party shall submit to the court, along with the answer, documentation sufficient to prove that the contracting party sent copies of the answer to the owner of the business who filed the complaint. If the court grants the exemption, the net profits of the business from operations within the District and the income of its employees from employment within the District are exempt from any income tax imposed by the Board. In such an event, the Board shall meet within ten (10) days and determine if further legal remedy is available and advisable. Likewise, the Board should make a determination as to the viability of the District and its ability to continue to operate. If the court denies the exemption, the net profits of the business and the income of its employees shall be taxed according to the terms of the Contract and any taxes, penalties, and interest accrued before the date of the court's determination shall be paid in full. Section 12. Annexation: During the Term of this Contract, the City agrees not to engage in any annexation, pursuant to ORC Chapter 709, of any real property in the District unless the Township Trustees agree to the Annexation. The cost associated with an annexation defense of the District shall be paid from the District income tax revenues as an operating expense of the District, except that in the event that the income tax provided for in Section 11 hereof is determined not to be legal or valid or it is determined that the District may not levy, collect or distribute that income tax in accordance with this Contract, then the cost the cost associated with an annexation defense of any other real estate in the District shall be paid by the Township. Section 13. Defaults and Remedies: A failure to comply with the terms of this Contract shall constitute a default hereunder. The party in default shall have 90 days after receiving written notice from the other party of the event of default to cure that default. If the default is not cured within that time period, the non -defaulting party may sue the defaulting party for specific performance under this Contract or for damages or both. Other than as provided in Section 6 hereof, this Contract may not be cancelled or terminated because of a default unless both the City and the Township agree to such cancellation or termination. Section 14. Amendments: In addition to the amendments provided for in Section 5 hereof, this Contract may be amended by the City and the Township only in writing and approved by the legislative authorities of both parties by appropriate legislation authorizing that