Annual Adjustment of the MAG. Forty-five (45) Days after the end of Agreement Year 1, and forty-five (45) Days after the end of each Agreement Year thereafter, the annual MAG shall be adjusted to equal the greater of the following: (i) Eighty-five percent (85%) of the total Privilege Fees due to County by Concessionaire for its operations for the preceding Agreement Year; or (ii) the previous Agreement Year's MAG. If the audit report issued pursuant to Section 4.12 of this Agreement demonstrates an over-adjustment or under-adjustment of the MAG pursuant to this subsection of at least three percent (3%) of the pre- adjusted amount, then the Annual Adjustment of the MAG shall be recalculated for such year within fifteen (15) Days after receipt of such audit report. Any overpayment by Concessionaire as of the date of recalculation shall be applied as a payment and credited toward Privilege Fees due in such year. Any underpayment by Concessionaire as of the date of recalculation shall be paid within thirty (30) Days after receipt of an invoice from County, with interest at eighteen percent (18%) per annum from the date such additional Privilege Fees were due, without further demand. If the audit report issued pursuant to Section 4.12 of this Agreement demonstrates an over-adjustment or under-adjustment of the MAG pursuant to this subsection of less than three percent (3%) of the pre-adjusted amount, then there will be no further adjustment of the Annual Adjustment of the MAG.
Annual Adjustment of the MAG. On the first calendar day of the anniversary of the commencement date and on each subsequent anniversary thereafter, the MAG shall be adjusted to equal the greater of the following:
