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8.03 Fixed Management Fee. 8.03.1 Annual Fixed Management Fee. The annual fixed management fee to be paid to OPERATOR ("Fixed Management Fee") shall represent 50% of the Total Management Fee Attainable as follows: Operating Year Total Management 50% Fixed Fee Fee Attainable July 1, 2015 to June 30,2016 $204,000 $102,000 On July 1, 2016 and on each July 1st thereafter the amounts indicated above, for the ensuing year, shall be increased in the same proportion as changes in the Consumer Price Index, All Urban Consumers, San Francisco-Oakland-San Jose area; base years 1982-1984 = 100 published by the U.S. Dept. of Labor, ("CPI") shall have occurred since July 1, 2015. 8.03.2 Payment of Fixed Management Fee. The Fixed Management Fee shall be paid in equal monthly installments on the last day of each month. 8.04 Incentive Management Fee. 8.04.1 Incentive Management Fee. In addition to the Fixed Management Fee, CITY shall pay OPERATOR an incentive fee of up to 50% of the Total Management Fee Attainable (as set forth in Section 8.03.1) (the "Incentive Management Fee"). The intent of the Incentive Management Fee is to provide an incentive to OPERATOR to improve the marketing and quality of the Golf Course, thereby increasing the number of rounds of golf and Gross Revenues. CITY shall pay OPERATOR an Incentive Management Fee equal to: (a) fifteen percent (15%) of the difference between the Gross Revenues (excluding food and beverage sales, Pro Shop merchandise sales and lesson fees) and the Base Performance Standard for Golf set forth in Section 8.04.2 if the Base Performance Standard for Golf is met; and (b) fifteen percent (15%) of the difference between the Gross Revenues from both food and beverage sales and Pro Shop merchandise sales and the Base Performance Standard for Merchandise and Food/Beverage set forth in Section 8.04.3 if the Base Performance Standard for Merchandise and Food/Beverage is met. 8.04.2 Base Performance Standards for Golf. CITY shall pay OPERATOR that portion of the Incentive Management Fee described in subsection 8.04.1(a) above if the following base performance standard for Gross Revenues excluding food and beverage sales, Pro Shop merchandise sales and lesson fees (the "Base Performance Standard for Golf') is met or exceeded: Contract Year beginning July 1, 2015 $3,000,000 Contract Year beginning July 1, 2016 $3,050,000 Contract Year beginning July 1, 2017 $3,100,000 Contract Year beginning July 1, 2018 $3,150,000 Contract Year beginning July 1, 2019 $3,200,000 8.04.3 Base Performance Standard for Merchandise and Food/Beverage. CITY shall pay OPERATOR that portion of the Incentive Management Fee described in Section 8.04.1(b) if the following base performance standard for revenue generated from food and Page 2 of S