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Name of Recipient Agreement No.: XX-XXX-550 Project No.: C-06-XXXX-XXX (a) At least ninety-five percent (95%) of the compensation for services for each annual period during the term of the contract is based on a periodic fixed fee which is a stated dollar amount for services rendered for a specified period of time. The stated dollar amount may automatically increase according to a specified objective external standard that is not linked to the output or efficiency of a facility, e.g., the Consumer Price Index and similar external indices that track increases in prices in an area or increases in revenues or costs in an industry are objective external standards. A fee shall not fail to qualify as a periodic fixed fee as a result of a one (1) time incentive award during the term of the contract under which compensation automatically increases when a gross revenue or expense target(but not both) is reached if that award is a single stated dollar amount. The term of the contract, including all renewal options, must not exceed the lesser of eighty percent(80%) of the reasonably expected useful life of the financed property and fifteen (15) years(twenty (20) years for"public utility property"within the meaning of Section 1680)(10) of the Code); (b) At least eighty percent(80%) of the compensationfotservices for each annual period during the term of the contract is based on a periodic fixed fee. The term of the contract, including all renewal options, must not exceed the lesser of eighty percent(80%)'of the reasonably expected useful life of the financed property and ten (10)years. A one(1)time incentive award during the term of the contract similar to the award des gibed in subsection (a) above.is permitted under this option as well; Nv (c) At least fifty percent(50%) of the compensation for services for each annual period during the term of the contract is based on a periodic fixed fee'or aloof the compensation for services is based on a capitation fee or combination bf.a periodic fixed,fee and a capitation fee, A capitation fee is a fixed periodic amount for,ethch,person for whom the service provider or the Recipient assumes the responsibility to provide all needed services for a specified period so long as the quantity and type ofservices actually provided to-covered )Persons vary substantially; e.g., a fixed dollar amounfpayable,per month to a service provider for each member of a plan for whom the provider agrees to provide all needed-services for a specified period. A capitation fee may include a variable component of up to twenty percent(20%)of the total capitation fee designed to protect the service provider againstrisks such as catastrophic loss. The term of the contract including all renewal options,..must not exceed five(5) years. The contract must be terminable by the Recipient on reasonable\notice without penalty or cause, at the end of the third //year-Of the contract;\ • (d) ofthe compensation for services is based on a per-unit fee or a combination of a per-unit fee and.a periodic fee. A'per-unit feels defined to mean a fee based on a unit of service provided as specked in the contractor otherwise specifically determined by an independent third party, such as the administrator of the program or the Recipient; e.g., a stated dollar amount for each specified procedure performed, car parked or passenger mile is a per-unit fee. The term of the contract, includirig,all renewal options, must not exceed three(3) years. The contract must be terminable by the Recipient'on reasonable notice, without penalty or cause, at the end of the second year of thecontract term; or (e) All of the compensation for services is based on a percentage of fees charged or a combination of a per-unit fee and a percentage of revenue or expense fee. During the start up period, however, compensation may be based on a percentage of gross revenues, adjusted gross revenues, or expenses of a facility. The term of the contract, including renewal options, must not exceed two (2) years. The contract must be terminable by the Recipient on reasonable notice without penalty or cause, at the end of the first year. This type of contract is permissible only with respect to contracts under which the service provider primarily provides services to third parties, and management contracts involving a facility during an initial start-up period for which there have been insufficient operations to establish a reasonable estimate of the amount of the 18