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that payment does not apply to the annual remitted gross sales tax threshold. By way of the example above, if OPERATOR remitted $4,500.00 in gross sales tax through regular business operations, the amount of gross sales tax to be remitted the following year would be $4,500.00 plus five percent (5%) for a total of $4,725.00. If in any year OPERATOR increases remitted gross sales tax by six percent (6%) or more ("Sales Tax Overage") that Sales Tax Overage shall apply to the following year's Annual Sales Tax increase; Sales Tax Overage shall riot carry forward beyond the immediately succeeding year. By way of example and using the scenario above, if OPERATOR's annual gross sales tax remittance was required to be $5,000 but instead totaled $6,000 in gross sales tax remitted, the additional $1,000 above the required $5,000 would be credited to the next year's Annual Sales Tax Increase amount due. In the event of an economic recession, as characterized by a material change in the local, state, national, or global economy as effected by recessions, depressions, pandemics (declared by an authorized Federal Agency and agreed upon by both parties), and/or force majeure events, this Section shall be renegotiated between CITY and OPERATOR upon written notice from OPERATOR to CITY of economic downturn business impact. OPERATOR shall be solely responsible for communicating to CITY when an economic downturn has affected business to the extent that this Section must be renegotiated. C. The annual operating fee shall be paid in annual installments (the "Yearly Operating Fee'), due on the first day of the month in which the Commencement Date occurs. When the first day of the month falls on a City Holiday or City Hall Closure Day, then the reporting/remittance date shall fall on the next City business day following. The Yearly Operating Fee shall be acknowledged and agreed by CITY to be paid timely if paid on said date. When reporting/remitting is made by mail, the postmark date shall serve as proof of timely reporting/remittance. D. OPERATOR shall not add any ancillary use to the new digital billboard and shall not derive any ancillary revenue from the Subject Property other than advertising revenue unless agreed to in writing and approved by the City. Any approved ancillary revenue shall be referred to as Approved Ancillary Revenue. The terms of any Approved Ancillary Revenue shall be mutually agreed on by CITY and OPERATOR by a separate writing, provided that the revenue share for Approved Ancillary Revenue shall not be less than 30 percent of gross ancillary revenue received less bad debt only (not to exceed two percent of gross ancillary revenue). E. The "Commencement Date" is January 1, 2024. The Yearly Operating Fee shall be paid to CITY on the first day of the month that it is due (January 1 of every term year beginning January 1, 2025). The first payment of the Yearly Operating Fee shall be due one (1) year after the Comrnencernent Date occurred. 5. Remittance and RetYqutins . Beginning as set forth above and annually thereafter, OPERATOR shall report and remit payment to CITY of the applicable billboard operating fees set forth in Section 4 of this AGREEMENT. At the request of the CITY, and on no more than a yearly basis, OPERATOR shall provide to the City gross business sales revenue reports (the "Business Revenue Reports" for all product sales at the Subject Property. Reports shall include all business product sales gross revenue