Second Amendment To Co-exclusive Concession Agreement No. Ont -8243a Hertz
SECOND AMENDMENT TO CO-EXCLUSIVE CONCESSIONAGREEMENT NO. ONT -8243AHERTZThis Second Amendment to Co-Exclusive Concession Agreement(the "Second Amendment") is made and entered into as ofby and between the City of Los Angeles, a municipalcorporation ("City"), acting by order of and through its Board of AirportCommissioners (the "Board"), andTHE HERTZ CORPORATION, aDelaware corporation ("Concessionaire," and collectively with the City, the"Parties") and is effective as of March 1, 2015.RECITALSWHEREAS, City and Concessionaire entered into a Co-ExclusiveConcession Agreement for the operation of an on-airport rental carconcession ("RAC") at Ontario International Airport ("Airport") datedFebruary 22, 2005, the stated term of which was March 1, 2005 toFebruary 28, 2010 (the "Agreement"); andWHEREAS, City and Concessionaire entered into a First Amendmentto the Agreement dated March 4, 2010 which, among other things,extended the term of the Agreement from March 1, 2010 to February 28,2015 (subject to earlier termination as provided therein); andWHEREAS, City, as owner and operator of the Airport, andConcessionaire wish to enter into this Second Amendment to extend theterm of their Agreement and agreeing to other terms and conditions;NOW, THEREFORE, in consideration of the mutual covenants andagreements contained herein, the Parties agree as follows.18243A Concess. Agree. Second Amend.10·28·14 ONT
AGREEMENT1. Section 2 of the Agreement is hereby deleted and replaced in itsentirety as follows:Section 2.Concessionaire and AffiliatesDuring the term of the Agreement, Concessionaire will bepermitted to operate an on-airport RAC at the Airport under thebrand name The Hertz Corporation and may include theoperations of approved Affiliates pursuant to Concessionaire'sbusiness/operations authorized under this Agreement.For purposes of this Agreement, an "Affiliate" is defined as anentity (a) whose rental car customers will be using Los AngelesWorld Airports ("LAWA") dedicated common-use bus system totransport rental car customers between the Airport's GroundTransportation Center ("GTC") and passenger terminal buildings,(b) that is not a party to an agreement directly with the City for theoperation of an on-airport or off-airport rental car concession at theAirport, and (c) that is owned and controlled by Concessionaire orby an entity that owns and controls both Concessionaire andAffiliate ("Parent Company"). For this purpose, control shall meanthe possession, directly or indirectly, of the power to direct orcause the direction of the management, operations, and policies ofsuch entity, whether through the ownership of voting securities orby contract or otherwise.A company which comes within the definition of "Affiliate" maybe added to this Agreement after meeting the following conditions:(a) Concessionaire has provided prior written notice to theExecutive Director, including a brief explanation as to how suchentity satisfies the definition of "Affiliate" herein and specifically,how Concessionaire or Parent Company has control of Affiliate; (b)Concessionaire has provided a fully executed copy of any28243A Concess. Agree. Second Amend.10·28·14 ONT
agreement between Concessionaire and each Affiliate authorizingsuch Affiliate operations at the Airport; (c) Concessionaire hasrequested that LAWA execute a Consent to Affiliate to include theAffiliate; and (d) the Executive Director, Concessionaire and theAffiliate execute a Consent To Affiliate whereby Affiliate agrees toand comply with all terms and condition of the Co-ExclusiveConcession Agreement (and any additional laws, rules orregulations applicable thereto, etc.).Concessionaire shall provide City with written notice within ten(1 0) days from the date when a previously approved Affiliate is nolonger operating as an Affiliate of the Concessionaire for purposesof this Agreement. The removal of such Affiliate shall not begrounds for default.Affiliates are subject to and must operate in compliance with theterms and conditions herein, and must operate from the DemisedPremises of Concessionaire under this Agreement. To removedoubt, compliance with the terms and conditions of this Agreementincludes, but is not limited to, satisfaction of insurance andindemnification requirements and the terms of the originalAgreement and any amendments thereto.Concessionaire assumes all legal responsibility under thisAgreement for its Affiliates, including the responsibility to providecompensation to City pursuant to Section 5 of this Agreement forits Affiliate(s), regardless of whether Affiliate(s) of Concessionairemake such compensation payment to Concessionaire. Operationof any rental car brands under this Agreement other than thoseapproved in writing by the Executive Director for Concessionaire. and its Affiliate(s) or any failure of an Affiliate of Concessionaire tocomply with the terms and conditions herein shall be grounds fordefault of Concessionaire in accordance with Section 22 hereof.38243A Concess. Agree. Second Amend.10-28-14 ONT
2. Section 3 of the Agreement is hereby deleted and replaced in itsentirety as follows:Section 3.Term of Concession Agreement(a) Term.The term of the Agreement shall consist of the FirstTerm and First Extension Term and Second Extension Term(as respectively defined below).(1 )First Term. The first term of this Agreement shall beeffective for a term of five (5) years commencing March 1,2005 and terminating at midnight on February 28, 2010 (the"First Term").(2)First Extension Term. Except as provided in this Agreement,the second term of this Agreement shall be effective for aterm of five (5) years commencing March 1, 2010 andterminating on February 28, 2015 (the "First ExtensionTerm"), subject, however, to early termination as providedherein.(3)Second Extension Term. Except as provided in thisAgreement, the third term of this Agreement shall beeffective for a term commencing March 1, 2015 andterminating on February 28, 2019 (the "Second ExtensionTerm"), subject, however, to early termination as providedherein.(b)City's Right to Terminate.Notwithstanding Section 3(a)above, in circumstances not involving breach of this Agreementby Concessionaire, City shall have the right to terminate thisAgreement after February 28, 2017 upon at least one (1) year'sprior written notice to Concessionaire in the event the Citydetermines in its sole discretion that it is in its best interest tothen issue a Request for Bid ("RFB") for new on-airport co48243A Concess. Agree. Second Amend.10-28-14 ONT
exclusive rental car concession agreements that wouldcommence prior to March 1, 2019. City will send a writtennotice to Concessionaire if and when an amended terminationdate is confirmed.If for reasons other than(c)Replacement Concessionaire.breach of this Agreement by Concessionaire or as provided inSection 3(b) above, the Agreement is terminated by City prior toFebruary 28, 2019, then Executive Director may take suchaction, if any, regarding the vacated space as determined at hisor her sole discretion.3. Section 5 of the Agreement is hereby deleted and replaced in itsentirety as follows:Section 5.Compensation to City5.1.Concession Fees.As consideration for City'sgranting the concession rights set forth herein, Concessionaireshall pay to City, during the term of this Agreement, THEGREATER OF:(a)Minimum Annual Guarantee: The Minimum Annual Guarantee(hereinafter referred to as "MAG").(b)Percent of Gross Revenue: The percent of total GrossRevenue, specified in Section 5.1.2 below, derived from theoperation of Concessionaire and Affiliate(s) authorizedhereunder. Gross Revenue of Affiliates shall be itemizedseparately on Concessionaire's "On-Airport Rental Car (RAG)Monthly Activity Report", which Concessionaire is to submit inaccordance with Section 14.1.2. of this Agreement.58243A Concess. Agree. Second Amend.10·28-14 ONT
5.1.1.Minimum Annual Guarantee.(a) First Term. The MAG for the first year of the First Term shall bethe amount of: One Million Six Hundred Eighteen ThousandFour Hundred Dollars ( 1 ,618,400.00.)Commencing with the second year of the First Term, and forall years thereafter during the First Term, the MAG shall beestablished at eighty-five percent (85%) of the applicableConcession Fee with respect to the immediately precedingtwelve (12) month period. However, in no event will the MAGbe less than the previous year's MAG.(b) First Extension Term. During the first year of the FirstExtension Term, the MAG shall be established at ninety percent(90%) of ten percent (1 0%) of the Concessionaire's GrossRevenue derived from the operation of Concessionaire's RACauthorized hereunder during the twelve(12) month periodcommencing March 1, 2009 and ending February 28, 2010.Commencing with the second year of the First ExtensionTerm, and for all years thereafter during the First ExtensionTerm, the MAG shall be established-at the greater of: (i) ninetypercent (90%) of the applicable Concession Fee paid to theCity with respect to the immediately preceding twelve (12)month period or (ii) the MAG during the first year of the FirstExtension Term.(c) Second Extension Term.During the first year of the SecondExtension Term, the MAG shall be established at ninety percent(90%) often percent (10%) of the Gross Revenue ofConcessionaire and its Affiliate(s) derived from on-AirportConcession Agreement rental car operations and from offAirport License Agreement rental car operations during the68243A Concess. Agree. Second Amend.10-28-14 ONT
twelve (12) month period commencing March 1, 2014 andending February 28, 2015.Commencing with the second year of the SecondExtension Term, and for all years thereafter during the SecondExtension Term, the MAG for Concessionaire shall beestablished at the greater of: (i) ninety percent (90%) of theapplicable Concession Fees paid to the City with respect to theimmediately preceding twelve (12) month period or (ii} SixHundred Eighty Thousand Dollars ( 680,000.00).5.1.1.1. Adjustments to Minimum Annual Guarantee.(a) First Term. During the First Term, adjustments to the MAGshall be made as follows:In the event of the adoption or enforcement of anymandatory federal, state or municipal regulation or orderpertaining to the allocation of fuel or prohibition on publicdriving, which is so inclusive as to severely restrictConcessionaire's RAC activities at Airport, City hereby agreesto enter into negotiations with Concessionaire toward the end ofpossibly readjusting, or partially abating, the MAG set forth inSection 5.1., Concession Fees, herein.In the event that the total number of deplaning passengers,in aggregate for all terminals at Airport, increases or decreasesby an amount greater than ten percent (1 0%) from one contractyear to the immediately following contract year, the City willadjust the MAG for said following contract year by thepercentage increase or decrease in excess of ten percent(1 0% ). Within ninety (90) days after each contract year, theCity will compare the actual number of deplaning passengersfor that year to those of the immediately preceding year. If agreater amount is due, the City will invoice Concessionaire for78243A Concess. Agree. Second Amend.10·28·14 ONT
the difference. If a lesser amount is due, the City will issue anappropriate rental adjustment to the Concessionaire which theConcessionaire may deduct from future rent payments.The Executive Director may temporarily waive the paymentof the MAG if the number of deplaning passengers in theAirport as a whole decreases by thirty percent (30%) or more inany two (2) consecutive months when compared to the samemonths of the preceding year. During any such period of awaived MAG, the Percent of Gross Revenue will continue to bein full force and effect.The Executive Director may at his or her sole discretionapprove other MAG adjustments as may be appropriate.(b) First Extension Term and Second Extension Term. During theFirst Extension Term and the Second Extension Term,adjustments to the MAG shall be made as follows:In the event of the adoption or enforcement of anymandatory federal, state or municipal regulation or orderpertaining to the allocation of fuel or prohibition on publicdriving, which in City's reasonable determination severelyrestricts Concessionaire's RAC activities at Airport, City herebyagrees to enter into negotiations with Concessionaire towardthe end of possibly readjusting, or partially abating, the MAGset forth in Section 5.1., Concession Fees, herein.The Executive Director may at his or her sole discretionapprove other MAG adjustments as may be appropriate.5.1.2.Percent of Gross Revenue(a) First Term. For purposes of Section 5.1 (b), the percent ofGross Revenue during the entire First Term shall be 9.50%.88243A Concess. Agree. Second Amend.10·28·14 ONT
(b) First Extension Term. For purposes of Section 5.1 (b), thepercent of Gross Revenue during the First Extension Termshall be as follows:Years 1 and 2 (March 1, 2010 through February 29, 2012):9.50%Years 3 and 4 (March 1, 2012 through February 28, 2014):9.75%Year 5 (March 1, 2014 through February 28, 2015): 10.00%(c) Second Extension Term. For purposes of Section 5.1 (b), thepercent of Gross Revenue during the entire Second ExtensionTerm shall be 10.00%.5.1.2.1. Gross Revenue Defined.For purposes of Section 5.1 (b) and 5.1.2, "GrossRevenue" shall be determined by the total of charges on theface of a customer's rental transaction contract, and shallinclude all amounts paid or payable to or considerations ofdeterminable value received by Concessionaire and theAffiliate(s) of Concessionaire (hereinafter collectively referred toas "Concessionaire" in this Section 5.1.2.1 ), after anydiscounts or coupons are deducted at time of rental.The following shall not be considered Gross Revenue:(a)income received from any "Local Customer". LocalCustomer for purposes of this Agreement shall be defined as acustomer personally residing within approximately a twenty (20)mile radius of the Airport, as determined by the residential zipcode listed on the customer's driver's license. Exhibit K, ZipCodes, is attached hereto as a guide to zip codes within a twenty(20) mile radius of the Airport, but shall not be considereddefinitive. Concessionaire agrees that its customers shall provide98243A Concess. Agree. Second Amend.10-28-14 ONT
and its rental transaction contracts shall indicate the followinginformation to facilitate identifying Local Customers in order todetermine whether inclusion in Gross Revenue under thisAgreement is applicable: the customer's driver's license number,address including zip code, and state of issuance;(b)any federal, state, county or city sales or other similartaxes or surcharges separately stated on the customer's rentaltransaction contract and collected from customer;(c)sums received for damage to or loss, conversion orabandonment of automobiles or other property of Concessionaire,which are separately identifiable as such, and if the losses couldbe identified as such;(d)all amounts collected from the customer separatelyidentified on the rental transaction and known as "Facility Fee"pursuant to Section 5.3., Customer Facility Charges, herein;(e)any charges collected from customers for payment ofparking tickets, tolls and toll violations, traffic and red light tickets,and towing and storage charges to the extent such collections arepaid by Concessionaire to satisfy such charges;(f)carbon offset fees voluntarily paid by the rental carcustomers and collected by Concessionaire where 100% of thefee collected is passed through to a third party to fundenvironmental initiatives; and(g)amounts received by Concessionaire from the sale ordisposal of Concessionaire-owned equipment or vehicles.Concessionaire shall have the burden of proof of establishing, tothe City's satisfaction, that any of Concessionaire's revenues aresubject to any of these Gross Revenue exclusions.Gross Revenue includes, but is not limited to: time and mileagecharges and separately stated fees for rental of automobiles at108243A Concess. Agree. Second Amend.10-28-14 ONT
Airport and other related or incidental services made at or fromAirport regardless of where vehicles or services are delivered orreturned; all amounts charged to customer for insurance coverageoffered by Concessionaire incidental to rental of vehicles includingbut not limited to Personal Accident Insurance (PAl), PersonalEffects (PEG) and Supplemental Liability Insurance (SLI); CollisionDamage Waiver (COW) and Loss Damage Waiver (LOW) chargeswhether or not they are separately identified as such on the rentalcontract; revenue from customers for fuel, fueling service fees andcharges and receipts for replacement of fuel whether at thecommencement or end of the rental; drop-off and/or exchangefees; proceeds from the long-term lease of automobiles; revenuefrom airline or travel agents as part of any promotion featuring freeor reduced rates as part of a package; miscellaneous revenuecollected for associated services and equipment, or from anythingelse, when the rental is solicited at Airport regardless of where therental contract is executed or where the automobile is picked upand of whether it is arranged by Concessionaire's employees,agents, representatives, affiliates, or foreign subsidiaries; anyamount attributable to retroactive adjustments/credits to GrossRevenue by Concessionaire as volume discounts or rebates orany other designation, such as, but not limited to fees orcommissions paid by Concessionaire to airlines, corporatecustomers, travel agencies or others; and such other charges tothe customer that are not specifically excluded herein.5.1.2.2.Gross Revenue Exclusions. There shall be NOseparately identified or allowable EXCLUSIONS to GrossRevenue as defined herein.5.2.Fees for Use of Ground Transportation Center ("GTC").In addition to Concession Fees (i.e. the MAG or Percent of GrossRevenue, whichever is greater), and Customer Facility Charges(hereinafter referred to as "CFCs"), remitted to City,118243A Concess. Agree. Second Amend.1 0·28·14 ONT
Concessionaire shall be liable to City and shall pay to City otherfees associated with use of the GTC, as indicated in this Sectionand set forth in Exhibit "C", Payments. Concessionaireacknowledges that the Executive Director is authorized to adjustthe fees for use of GTC, made pursuant to the Agreement. Ifadjustments to said fees and/or other charges are adopted by theBoard retroactive to an effective date established by the Board,the adjustments shall be applied retroactively to said effective dateand Concessionaire shall be responsible for retroactive paymentof any increased amounts due.5.2.1.Ground Rent. Concessionaire shall pay ground rentduring the term of this Agreement for: 1) exclusive use and 2)common use premises at the GTC based upon the rental rate forunimproved land (hereinafter referred to as "Rate"). Effective July1, 2004, the Rate is 21,737 per acre per year (papy) I 0.49901per square foot per year (psfpy). The monthly rent shall beadjusted pursuant to Section 13, Rental Adjustments, of thisAgreement.Exclusive Use5.2.1.1.Exclusive Use Premises.Premises are comprised of Counter/Office and Ready Returnareas.Common Use Premises.Common Use5.2.1.2.Premises, as described in Section 4, Demised Premises, of thisAgreement, shall be aggregated and then prorated betweenConcessionaire and the other concessionaires that have executedsubstantially similar agreements to this Agreement based upon thepercentage share of customer transactions of eachconcessionaire, including those of each Affiliate of suchconcessionaire, to total customer transactions at the GTC.5.2.2.Maintenance and Operations Expenses.Maintenance and Operations (hereinafterreferred to as "M&O")128243A Concess. Agree. Second Amend.10·28·14 ONT
expenses are comprised of the total M&O expenses of or allocableto the GTC, as determined in accordance with generally acceptedaccounting principles, excluding depreciation and amortization.M&O costs shall be aggregated and then assessed pro ratabetween Concessionaire and the other concessionaires that haveexecuted substantially similar agreements to this Agreementbased upon the percentage share of customer transactions ofeach concessionaire, including those of each Affiliate of eachconcessionaire, to total customer transactions at the GTC.5.2.3.Common Use Transportation System ("CUTS").City shall finance and operate the CUTS that will transport rentalcar customers between the Airport's passenger terminal buildingsand the GTC. The costs to operate the CUTS shall be recoveredthrough CFCs submitted to City by rental car companies. During afiscal year, costs for the CUTS shall be calculated using estimated(budgeted) amounts for such fiscal year. Following the close ofthe fiscal year, the actual costs for such fiscal year shall bedetermined. The variance shall be reconciled with CFCs remittedby all rental car companies authorized to conduct operations at theAirport and those costs attributed to the CUTS.City reserves the right to transition responsibility formanagement and operation of the CUTS to a consortium of theconcessionaires during the term of the Agreement, upon mutualagreement between Concessionaire, the other concessionairesthat have executed substantially similar agreements to thisAgreement, and City, subject to City standards and requirements.5.2.4.[Deleted in its entirety]5.2.5.Utilities. Utility charges not separately metered andbilled directly to Concessionaire will be billed back to theConcessionaire by City using utility meter readings conducted byCity and assessed pro rata between Concessionaire and the other138243A Concess. Agree. Second Amend.10-28-14 ONT
concessionaires that have executed substantially similaragreements to this Agreement based upon the percentage shareof customer transactions of each concessionaire, including thoseof each Affiliate of each concessionaire, to total customertransactions at the GTC.5.2.6.Administration Fees. An administrative fee of fifteenpercent (15%) shall be applied to invoices for: (a) utility chargesbilled back to Concessionaire, and (b) repairs made by City thatwere Concessionaire's responsibility. In addition, a 34.53%overhead will be applied to labor rates for repairs made by Citythat were Concessionaire's responsibility. Concessionaireacknowledges the percentage of the aforementionedAdministrative Fees may be adjusted during the term of thisAgreement.5.3.Customer Facility Charges. Concessionaire and itsAffiliate(s) shall collect CFCs from rental car customers pursuantto California Civil Code §1936 and Concessionaire shall remit allsuch CFCs collected to City. CFCs collected by Concessionaireand Affiliates will be separately identified as "Facility Fee" on rentaltransaction contracts. CFCs collected by Affiliates shall beincluded with Concessionaire's payment of CFCs to City anditemized separately on Concessionaire's "On-Airport Rental Car(RAC) Monthly Activity Report", which Concessionaire is to submitin accordance with Section 14.1.2 of this Agreement.Concessionaire and its Affiliate(s) shall collect a CFC inamounts established by the Board. Concessionaire acknowledgesthat the CFC may be adjusted during the term of this Agreement.City shall provide sixty (60) days advanced written notice toConcessionaire of a proposed CFC adjustment before the itemgoes for Board approval. Such written notice from City shalldescribe the proposed adjustment.148243A Concess. Agree. Second Amend.10·28·14 ONT
5.3.1.Application of Customer Facility Charges. City mayapply CFCs remitted by rental car companies to pay legallyauthorized costs as determined by the Executive Director.5.4.Assessments. Fees and Charges. In addition to therental obligation, Concessionaire hereby agrees to pay suchassessments, fees and charges as shall be set by the Board andthat shall be generally applicable to similarly situated concessionsat Airport.4. Section 12 of this Agreement is hereby deleted and replaced in itsentirety as follows:"Section 12. Reallocation of Facilities.12.1. Defined Terms.For purposes of this Section 12, thefollowing definitions shall apply. Capitalized terms in Section12 not otherwise defined in this Section 12.1 shall have theirmeanings as set forth elsewhere in this Agreement.(a) "RAC Operators" means all entities, collectively includingtheir Affiliates as defined in Section 2 hereof, operating at theAirport pursuant to on-airport RAC agreements (as may beamended from time to time) awarded under the Airport's 2004Request For Bids for On-Airport Rental Car Co-ExclusiveConcessions at Ontario International Airport.(b) "RAC Transaction" means a written agreement entered intoby Concessionaire or its Affiliate(s) and a customer for therental of an automobile.(c) "Reallocation Evaluation" means an evaluation by City atany time during the First Extension Term to determine whethera Reallocation Event (as defined in Section 12.3 below) hasoccurred.158243A Concess. Agree. Second Amend.10-28-14 ONT
(d) "Reallocation Event" shall have the meaning as set forth inSection 12.3 below.(e) "Transaction Percentage Share" means the number ofConcessionaire's and its Affiliate(s)' annual RAC Transactionspursuant to on-airport RAC agreements (as may be amendedfrom time to time), divided by the total number of RACTransactions pursuant to on-airport RAC agreements (as maybe amended from time to time) during the same period from allthen-current RAC Operators at the Airport.12.2. First Term Reallocation.Ready Return site acreage willnot be reallocated during the First Term of the Agreementunless the City, between the 24th and 36th months of the FirstTerm of the Agreement, determines that there has been a tenpercent (1 0%) or greater change in the overall percentageshare of RAC Bid-MAGs, upon which the initial allocation ofReady Return acreage was based and the current percentageshare of RAC customer transactions. In the event the Citydetermines such a change in percentage share has takenplace, the City may, in its sole discretion require a reallocationof the Ready Return sites.12.3. First Extension Term Reallocation. During the FirstExtension Term of the Agreement, Ready Return site acreage("Acreage") will not be reallocated unless LAWA determinespursuant to a Reallocation Evaluation that there would be a tenpercent ( 10%) or greater change in any one or more of the RACOperators' Acreage based upon a comparison of the allocationof the Acreage of any RAC Operator(s) at the commencementof the First Extension Term to the allocation of the Acreage inproportion to the Transaction Percentage Share of such RACOperator(s) at the time of Reallocation Evaluation (a"Reallocation Event"). There shall be no more than one (1)168243A Concess. Agree. Second Amend.10·28·14 ONT
reallocation pursuant to this Section 12.3 during the FirstExtension Term.12.4. Second Extension Term Reallocation. At thecommencement of the Second Extension Term of theAgreement, Ready Return site acreage ("Acreage") will bereallocated to approximately match the Transaction PercentageShare of each RAG Operator in Calendar Year 2014.Concessionaire hereby agrees that all work and costsassociated with such reallocation shall be the sole responsibilityof the RAG Operators, except that the relocation cost of RAGshared fences, if any, shall be paid from CFCs. Adjustments tothe existing Ready Return sites shall be contiguous. In theevent any First Extension Term RAG Operator becomes anAffiliate of Concessionaire at the commencement of the SecondExtension Term, Concessionaire will retain such Affiliate's FirstExtension Term Acreage and the reallocation of such Acreagewill be based on such Affiliate's Transaction Percentage Sharein Calendar Year 2014. In consultation with the RAGOperator(s), the City may provide engineering drawingsdepicting realigned Ready Return sites. Except as provided forin Section 12.5 and 12.6, there shall be no further Acreagereallocations during the Second Extension Term of theAgreement.In the event any First Extension Term RAG Operatorbecomes an Affiliate of Concessionaire at the commencementof the Second Extension Term, Concessionaire will retain suchAffiliate's First Extension Term Customer Counter and RAGOffice area. Except as provided for in Section 12.5 and 12.6,the location and size of the Customer Counters and RAG Officeareas are not subject to reallocation and will not change duringthe Term of the Agreement.178243A Concess. Agree. Second Amend.10·28·14 ONT
12.5. Other City-Initiated Reallocation. If, during the SecondExtension Term, Concessionaire or another concessionaire thathas executed a substantially similar agreement to thisAgreement ceases to operate at the Airport or abandons use ofan assigned area, then Executive Director may take suchaction, if any, regarding the vacated space as determined at hisor her sole discretion.12.6 RAG Operator-Requested Reallocation. RAG Operatorrequested reallocation or relocation of Ready Return acreage orCustomer Counter and RAG Office areas may be considered byCity, at its sole discretion, during the term of the Agreementshould RAG Operators mutually agree and request for same inwriting, with said requests subject to approval by the ExecutiveDirector. All work and costs associated with RAG Operatorrequested reallocations or relocations shall be the soleresponsibility of and be borne by the RAG Operators requestingreallocation or relocation. The City shall have sole discretion asto the determination of such request(s).5. Section17.2 of this Agreement is hereby deleted and replaced inits entirety as follows:17.2.Certified Public Accountant Audit Report. Within 120days following the end of each contract year, Concessionaire, atits own expense, shall submit an audited statement of the yearlyGross Revenue and CFC collections for its Airport operations andsuc
Commissioners (the "Board"), andTHE HERTZ CORPORATION, a Delaware corporation ("Concessionaire," and collectively with the City, the "Parties") and is effective as of March 1, 2015. RECITALS WHEREAS, City and Concessionaire entered into a Co-Exclusive Concession Agreement for the operation of an on-airport rental car
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