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tive Incentive Fees shall not exceed seventy -five percent (75 %) of the fixed fee payable <br />to SMG for such Fiscal Year pursuant to Section 4.1; and <br />(ii) Qualitative Incentive Fee SMG may earn an annual qualitative <br />Incentive Fee ( "Qualitative Incentive Fee ") with respect to each Fiscal Year during the <br />Management Term up to an amount equal to twenty -five percent (25 %) of the fixed fee <br />payable to SMG for such Fiscal Year pursuant to Section 4.1. The amount of the Qualita- <br />tive Incentive Fee shall be based upon an evaluation of SMG's performance by the Coun- <br />ty with respect to the following qualitative criteria: <br />(a) Professional Management SMG shall demonstrate professional <br />management of staff by above average ratings on mutually approved service deli- <br />very surveys (a copy of which is attached hereto as Exhibit 4.2(a)(ii)(a) and a re- <br />view by the County. (up to 40 points) <br />(b) Maintenance and Operation SMG shall demonstrate quality main- <br />tenance and operation of the Facility based upon a review by the County on a <br />quarterly basis of the condition of the Facility and the equipment therein. (up to <br />20 points) <br />(c) Customer Service SMG shall demonstrate quality service to <br />clients of the Project by above average ratings on mutually approved service deli- <br />very surveys (a copy of which is attached hereto as Exhibit 4.2(a)(ii)(c) (up to 40 <br />points) <br />The amount of the points assigned for such Fiscal Year will be used to calculate the Qualitative <br />Incentive Fee payable to SMG for such year as described below. The Qualitative Incentive Fee <br />for any Fiscal Year shall be an amount equal to the product of (A) 25% of the fixed fee payable <br />under Section 4.1 for such Fiscal Year, and (B) a ratio whose denominator is 100 points and <br />whose numerator equals the number of points earned by SMG for such year in the County's dis- <br />cretion as provided above. The parties will meet periodically, as the County determines to be <br />reasonably necessary, during the course of each Fiscal Year to provide performance updates and <br />to discuss performance issues. <br />(b) Payment The incentive fees determined pursuant to Section 4.2(a) above <br />shall be payable to SMG within forty -five (45) days after the County's receipt of an invoice from <br />SMG accompanied by an annual statement certified by one of its officers setting forth the Oper- <br />ating Revenues and Operating Expenses for the previous Fiscal Year and showing the calculation <br />of the incentive fee payable with respect to such Fiscal Year. Provided that the County approves <br />or does not object in writing to SMG's invoice within forty -five (45) days of its receipt of the <br />same, SMG will thereafter be entitled to deduct the amount of such fee from the account de- <br />scribed in Section 5.6 below, provided that to the extent that SMG projects that such a deduction <br />would leave insufficient funds in such account to cover Operating Expenses for the remainder of <br />the then - current fiscal quarter, SMG shall be entitled not to deduct all or a portion of such fee <br />from such account, and, upon notice thereof from SMG, the County shall promptly pay SMG the <br />amount of the fee that has not been deducted from such account. Promptly following the availa- <br />pdfconvert. 9450.1. cabarms_agreement_2015. doc <br />12 <br />Attachment number 1 <br />F -1 Page 92 <br />