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1 3. Service Recipient Responsiveness. 2 3 a) For each failure to initially respond to a service 4 recipient Complaint within one (1) business day: $100.00 5 6 b) For each failure to process service recipient 7 Complaints to Agency as required by Article 5: $500.00 8 9 4. Timeliness of Submissions to Agency. Any report shall be 10 considered late, after the seventh late day, until such time as a correct and complete 11 report is received by Agency. For each calendar day a report is late, the daily liquidated 12 damage amount shall be: 13 14 a) Quarterly Reports: $100 per day 15 16 b) Annual Reports: $500 per day 17 18 Liquidated damages will only be assessed after Contractor has been given 19 the opportunity but failed to rectify, in a timely manner, the breach as described in this 20 Agreement. Agency may determine the occurrence of events giving rise to liquidated 21 damages through the observation of its own employees or representative or 22 investigation of service recipient Complaints. 23 24 Prior to assessing liquidated damages, Agency shall give Contractor 25 notice of its intention to do so. The notice will include a brief description of the 26 incident( s) j non-performance. Contractor may review (and make copies at its own 27 expense) all information in the possession of Agency relating to incident(s)jnon- 28 performance. Contractor may, within ten (10) days after receiving the notice, request a 29 meeting with Agency. Contractor may present evidence in writing and through 30 testimony of its employees and others relevant to the incident(s)jnon-performance. 31 Agency will provide Contractor with a written explanation of his or her determination 32 on each incident(s)jnon-performance prior to authorizing the assessment of liquidated 33 damages. The decision of Agency shall be final. 34 35 C. Amount. Agency may assess liquidated damages for each calendar 36 day or event, as appropriate, that Contractor is determined to be liable in accordance 37 with this Agreement. 38 39 D. Timing of Payment. Contractor shall pay any liquidated damages 40 assessed by Agency within ten (10) days after they are assessed. If they are not paid 41 within the ten (10) day period, Agency may proceed against the performance bond 42 required by the Agreement or order the termination of the Agreement granted by this 43 Agreement, or both. 44 Atty j Agrj2005.022 060205 -61-