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6.3A <br /> Page 35 <br /> 1 Prorated Revenue Guarantee = $4,875,000 (75% x Revenue Guarantee) <br /> 2 <br /> 3 C. Revenue Guarantee Durin4 Rate Year Two and Thereafter. <br /> 4 The Revenue Guarantee for all rate years after Rate Year One will be equal to the <br /> 5 dollar amount calculated under subsection 6.2 above. ' <br /> 6 D. Sharinq of Revenues. <br /> '7 1. General. As an incentive to Contractor to maximize both the quantity and <br /> g quality of materials recovered and successfully marketed for recycling, <br /> 9 Contractor will be entitled to twenty five percent (25%) of the Revenue from <br /> 10 the sale of Recyclable Materials delivered to or recovered at the Shoreway <br /> 11 Center in excess of the Revenue Guarantee. Once the Contractor's payment <br /> 12 of Revenue from the sale of Recyclable Materials equals the Revenue <br /> 13 Guarantee, for the balance of that Rate Year, Revenue will be divided <br /> 14 between the Authority and the Contractor as provided in Section 7.07.D.2 and <br /> 15 3• <br /> 16 2. Minimum Share. The Contractor is entitled #o a minimum of twenty five <br /> 1 � percent (25%) of Revenue earned and received from the sale of Recyclable <br /> 1$ Materials. Commencing with the month immediately following the month in <br /> 19 which Contractor has paid the Authority the Revenue Guarantee, Contractor <br /> 20 will be entitled to retain finrenty �ve percent (25%) of Revenue received <br /> 21 thereafter in that Rate Year, paying the Authority seventy five percent (75%) <br /> 22 of Revenue monthly. Contractor's entitlement to twenty five percent (25%) of <br /> 23 a portion of the Revenue paid to Authority in the month in which the Revenue <br /> 24 Guarantee was attained will be determined and paid within 60 days after the <br /> 25 end of the Rate Year. <br /> 26 3. Increased Share. As a further incentive for Contractor to maximize recovery <br /> 2'7 of Recyclable Materials at the MRF, the Contractor's share of Revenues (in <br /> 2g excess of the Revenue Guarantee) will be increased as provided in this <br /> 29 subsection 3. <br /> 30 <br /> 31 Materials not recovered at the MRF will be sent to the Transfer Station for <br /> 32 transport to the Designated Disposal Site. Commencing with the first Rate <br /> 33 Year in which full-scale sorting operations are continuous (expected to be <br /> 34 2012), the MRF residue generation rate will be calculated. The MRF residue <br /> 35 generation rate is the percentage obtained by dividing the total Tons of <br /> 36 material sent from the MRF to the Transfer Station during the Rate Year by <br /> 3'7 the total Tons of material delivered to the MRF. <br /> 38 <br /> 39 For any Rate Year in which the MRF residue generation rate is less than ten <br /> 40 percent (10%), the Contractor's percentage share of Revenues in excess of <br /> 41 the Revenue Guarantee will be increased as follows: <br /> MRF RESIDUAL GENERATION INCREASE IN COMMODITY <br /> SHARE <br /> 10%> no increase <br /> 9.0% - 9.9% 1% increase (becomes 26%} <br /> 8.0% - 8.9°/a 2% increase (becomes 27%) <br /> Operating Agreement for Shoreway Center <br /> Page - 26 - 7/30/09 <br />