Agmt09 South Bay Recycling, LLC - Laserfiche WebLink

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 $4,875,000 (750/0 x Revenue Guarantee) Prorated Revenue Guarantee = C. Revenue Guarantee Durina Rate Year Two and Thereafter. The Revenue Guarantee for all rate years after Rate Year One will be equal to the dollar amount calculated under subsection B.2 above. D. Sharina of Revenues. 1. General. As an incentive to Contractor to maximize both the quantity and quality of materials recovered and successfully marketed for recycling, Contractor will be entitled to twenty five percent (250/0) of the Revenue from the sale of Recyclable Materials delivered to or recovered at the Shoreway Center in excess of the Revenue Guarantee. Once the Contractor's payment of Revenue from the sale of Recyclable Materials equals the Revenue Guarantee, for the balance of that Rate Year, Revenue will be divided between the Authority and the Contractor as provided in Section 7.07.D.2 and 3. 2. Minimum Share. The Contractor is entitled to a minimum of twenty five percent (250/0) of Revenue earned and received from the sale of Recyclable Materials. Commencing with the month immediately following the month in which Contractor has paid the Authority the Revenue Guarantee, Contractor will be entitled to retain twenty five percent (250/0) of Revenue received thereafter in that Rate Year, paying the Authority seventy five percent (750/0) of Revenue monthly. Contractor's entitlement to twenty five percent (250/0) of a portion of the Revenue paid to Authority in the month in which the Revenue Guarantee was attained will be determined and paid within 60 days after the end of the Rate Year. 3. Increased Share. As a further incentive for Contractor to maximize recovery of Recyclable Materials at the MRF, the Contractor's share of Revenues (in excess of the Revenue Guarantee) will be increased as provided in this subsection 3. Materials not recovered at the MRF will be sent to the Transfer Station for transport to the Designated Disposal Site. Commencing with the first Rate Year in which full-scale sorting operations are continuous (expected to be 2012), the MRF residue generation rate will be calculated. The MRF residue generation rate is the percentage obtained by dividing the total Tons of material sent from the MRF to the Transfer Station during the Rate Year by the total Tons of material delivered to the MRF. For any Rate Year in which the MRF residue generation rate is less than ten percent (100/0), the Contractor's percentage share of Revenues in excess of the Revenue Guarantee will be increased as follows: MRF RESIDUAL GENERATION INCREASE IN COMMODITY SHARE no increase 1 % increase (becomes 260/0) 20/0 increase (becomes 270/0) 100/0> 9.00/0 - 9.90/0 ~.o% - 8.90/0 Operating Agreement for Shoreway Center Page - 26 - 7/30/09