Common use of Minimum Annual Guarantee Clause in Contracts

Minimum Annual Guarantee. The “Minimum Annual Guarantee” or “MAG” for the first and second Lease Years is $ , pro-rated for the first Lease Year if less than 12 months. Beginning with the third Lease Year, and for each Lease Year thereafter, the Minimum Annual Guarantee will equal the greater of: 1) eighty-five percent (85%) of the total Percentage Fee payable for the preceding Lease Year and 2) the Minimum Annual Guarantee for the second Lease Year (without consideration of any pro-rationing on account of partial occupancy of the Leased Space). The Minimum Annual Guarantee applicable to the last Lease Year will be pro- rated if less than 12 months. In the event the Retail Space is comprised of two or more distinct locations, then prior to the Date of Beneficial Occupancy of the final portion of the Retail Space to be opened, MAG shall equal that portion of total MAG which the number of square feet of floor area of those portions of the Retail Space that have passed their respective Dates of Beneficial Occupancy bears to the total number of square feet of floor area of the Retail Space.