Incentive Fee Measures. The Approved Operating Budget, as adopted from year to year during the Operating Term in accordance with the procedures set forth in Section 9.2, shall define the specific measurements for each of the Incentive Fee Measures described below, shall establish the sole criteria under this Agreement by which satisfaction of Incentive Fee Measures will be determined for each Operating Year, and shall assign a weighted percentage to each category of Incentive Fee Measure (“Weighted Incentive Fee Percentage”) for purposes of establishing a formula for calculation of the annual Incentive Fee under Section 7.5 of this Agreement. The categories of incentive fee measurement goals by which Operator’s Incentive Fee shall be measured (based on criteria established in the Approved Operating Budget from year to year) (“Incentive Fee Measures”), and the Weighted Incentive Fee Percentage assigned to each category, shall consist of the items and percentages listed below. The categories, components, and Weighted Incentive Fee Percentages assigned to the Incentive Fee Measures may be changed or modified from year to year as mutually agreed by City and Operator. A Weighted Incentive Fee Percentage will be calculated as the product of the extent to which Operator met the Incentive Fee Measure criteria for the subject Fiscal Year multiplied by the Weighted Incentive Fee Percentage assigned to such Incentive Fee Measure. By way of example, and not by way of limitation, if an Incentive Fee Measure is assigned a Weighted Incentive Fee Percentage of 40%, and it is determined that Operator met 95% of the incentive criteria for such Incentive Fee Measure, then Operator would have a Weighted Incentive Fee Percentage of 38% with respect to such Incentive Fee Measure (40% x 95% = 38%). The sum of the Weighted Incentive Fee Percentages shall then be determined for purposes of calculating the Incentive Fee under Section 7.5. Sample calculations of the Incentive Fee Measure Percentage using a weighted scorecard approach are set forth in Schedule 7.2 to this Agreement. The Incentive Fee Measures and Weighted Incentive Fee Percentages assigned to each are described below:
