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dealerships on Marina Boulevard in San Leandro, aggregate Annual Sales of a <br /> minimum of Twenty Million Dollars ($20,000,000.00) in each calendar year <br /> beginning in 1997 (provided that annual sales shall be prorated for 1997), and <br /> continuing for each of the following consecutive twenty (20) calendar years (through <br /> and including calendar year 2017.) <br /> 5.03 Early Termination of Annual Sales Obligation, <br /> Developer's obligation to generate such Twenty Million Dollars <br /> ($20,000,000.00) Annual Sales shall terminate prior to expiration of the above <br /> twenty (20) year term if, at any time following Developer's opening for business on <br /> the Property, the City of San Leandro has actually received sales tax generated from <br /> Annual Sales equal to Four Million Dollars ($4,000,000), or Agency has received the <br /> Shortfall Amount as set forth below equal to One Million Five Hundred Thousand <br /> Dollars ($1,500,000). <br /> 5.04 Shortfall Amount. <br /> In the event that while the Annual Sales provisions of this Article Five are still <br /> in effect, and Developer does not generate Annual Sales of at least Twenty Million <br /> Dollars ($20,000,000), Developer shall pay to Agency a sum equal to the shortfall <br /> between the City's allocable share of the sales tax on the Annual Sales actually <br /> generated and the Citv's allocable share of the sales tax on sales of Twenty Million <br /> Dollars ($20,000,000) which sum is hereinafter referred to as the "Shortfall Amount." <br /> Said Shortfall Amount shall be calculated and paid by Developer within forty -five <br /> (45) days from the end of any year in which such a shortfall occurs. For the purpose <br /> of this Agreement, the "Shortfall Amount" shall be calculated based upon the current <br /> State of California sales tax formula and allocation system existing as of January 1, <br /> 1997, for the full term of this Agreement, notwithstanding any changes to said sales <br /> tax formula or allocation system which may occur during the term of this Agreement <br /> and which may negatively affect the amount of sales tax received by the City of San <br /> Leandro. <br /> 5.05 Shortfall Guaranty. <br /> So long as Developer is obligated to generate Annual Sales and such obligation <br /> is not subject to early termination as set forth in Section 5.03 above, Anthony A. <br /> • <br /> Disposition and Development Page 16 of 39 <br /> Agreement (Automall) <br /> 10/2/96 <br /> • <br /> • <br />