Sept_27_2021_Board_Documents.pdf — PaddleOCR-VL (Baidu)

up to three (3) one-year Renewal Terms, that may be exercised individually by Concessionaire on September 1 of each year throughout the Term of this Agreement. Said Renewal Terms shall be further subject to Concessionaire's execution of Authority's then current standard form Lease and Concession Agreement, which shall supersede this Agreement. Concessionaire shall notify Authority in writing of its intent to exercise each Renewal Term one hundred eighty (180) days prior to the expiration of the Term, as amended, to the address provided in Article 47, below.

6.3 Holdover Provision

In the event Concessionaire, with Authority approval, shall continue to occupy the Leased Premises beyond the Term of this Agreement, such holding over shall not constitute a renewal of this Agreement, but shall be considered a month-to-month tenancy only incorporating all terms and conditions of this Agreement. No such holdover shall be deemed to operate as renewal or extension of the Term. Such month-to-month tenancy may be terminated by the Authority or Concessionaire by giving one hundred and eighty (180) days' written notice of said termination to the other party at any time. Concessionaire will have no rights to renew or extend the Term of this Agreement.

ARTICLE 7 CONCESSION FEE

As consideration for Concessionaire's use of the Leased Premises and the privilege of doing business at the Airport, Concessionaire shall pay Authority an annual Concession Fee equal to the greater of a Minimum Annual Guarantee (MAG) or a Percentage Payment plus applicable sales or use tax.

7.1 Minimum Annual Guarantee (MAG)

Concessionaire shall pay the Percentage Payment only for the First Agreement Year. For each Agreement Year after the First Agreement Year of the Term, a Minimum Annual Guarantee will be established equal to eighty-five percent (85%) of the previous Agreement Year Percentage Payments. Concessionaire shall pay the greater of the Percentage Payment or MAG. The MAG for each Agreement Year shall be paid in equal monthly installments payable in advance and without demand on or before the first day of each month during the Term of this Agreement.

7.2 Severe Decline in Enplaned Passengers

Defined Terms:

"Severe Decline in Enplaned Passengers for Three Months" shall mean that the actual enplaned passengers achieved during a one calendar month period is less than eighty percent (80%) of the actual enplaned passengers of the same one calendar month period of the previous year, and such shortfall continues for three (3) consecutive months.
“Enplaned Passenger Stabilization for Two Months” shall mean the actual enplaned passengers for a particular calendar month equals or exceeds eighty percent (80%) of the actual enplaned passengers of the same month in the previous year and such threshold is achieved for two (2) consecutive months.