Article 3. Evaluation; Performance Management, Fiscal Services and JVS Data Sharing

Article 3 of the Pathway to Economic Success, Pay for Success Contract.

Table of Contents

Article 3. Evaluation; Performance Management, Fiscal Services and JVS Data Sharing

Section 3.01 Evaluation. The Commonwealth will make Success Payments to SFMA in accordance with Section 4.03 and Schedules B, C, and D hereto based on a calculation of the Final Outcomes as set out in the Evaluation Plan attached hereto as Schedule C. Reference is made to the attached Schedule C for a detailed description of the evaluation methodology to be used in measuring and calculating the Final Outcomes. In case of any inconsistency between this PFS Contract and Schedule C, Schedule C shall control.

Section 3.02 Evaluator. SFI has entered into an agreement (the “Evaluation Implementation Agreement”) with Economic Mobility Corporation (the “Independent Evaluator”), pursuant to which the Independent Evaluator will calculate each of the Final Outcomes, provide reports and meet its other obligations as set forth in this PFS Contract, including the Schedules hereto. SFI shall not replace the Independent Evaluator without the written approval of EOAF and JVS, which approval will not be unreasonably withheld. SFMA will compensate the Independent Evaluator for all services provided in accordance with the terms of the Evaluation Implementation Agreement from amounts on deposit in the SFMA Operating Account, as defined below, and in accordance with the Funding Plan attached hereto as Schedule E. SFI will be responsible for enforcing the provisions of this PFS Contract with the Independent Evaluator, including ensuring the timing of the Independent Evaluator’s reports, analyses, and other obligations under this PFS Contract, including the Evaluation Plan set forth in Schedule C. Such enforcement rights shall include the termination and replacement of the Independent Evaluator for failure to comply with its obligations hereunder or under the Evaluation Implementation Agreement.

Section 3.03 Performance Management. SFI will provide ongoing performance management services during the term of the PFS Contract, and will use its reasonable efforts to perform its responsibilities and to take such actions in each case as are required to be taken by it in this PFS Contract and in the Schedules attached hereto. In particular, SFI will be responsible for facilitating the governance and Change Management Procedures as set forth in Schedule F.

(a) SFI, SFMA, and JVS have entered into an agreement (the “Side Letter Agreement”), pursuant to which SFMA will compensate JVS for all services provided in accordance with the terms of the Side Letter Agreement from amounts on deposit in the SFMA Operating Account and in accordance with the Funding Plan attached hereto as Schedule E.

(b) SFI, SFMA, and Jobs for the Future (“JFF”) will enter into an agreement (the “Technical Assistance Services Agreement”) prior to the Service Commencement Date. SFMA will compensate JFF for all services provided in accordance with the terms of the Technical Assistance Services Agreement from amounts on deposit in the SFMA Operating Account and in accordance with the Funding Plan attached hereto as Schedule E.

Section 3.04 Fiscal Intermediary Services. SFMA will act as the fiscal intermediary under the PFS Contract, and will use its reasonable efforts to perform its responsibilities and to take such actions in each case as are required to be taken by it in this PFS Contract and in the Schedules attached hereto.

(a) Prior to accepting any funds, SFMA will have in place systems and processes that are appropriate and adequate for the generation of the reports it is responsible for under Schedule F and any other reasonably anticipated deliverables required to be delivered by SFMA pursuant to this PFS Contract, and such systems shall be designed to provide reasonable assurances regarding the reliability of its financial statements.

(b) Use of Proceeds. SFMA will use the amounts deposited in the SFMA Operating Account in order to satisfy contractual obligations pursuant to the terms of this PFS Contract in accordance with Schedule E, and will apply the amounts deposited in the SFMA Deposit Account in order to satisfy its obligations pursuant to the Private Funding Agreements. Failure by SFMA to comply with any material respect to the Funding Plan, or evidence of bad faith or misappropriation of funds, will result in the termination and replacement of SFMA pursuant to this PFS Contract. SFMA will be obligated to repay any such misappropriated funds.

Section 3.05 JVS Data Sharing. JVS will provide data on a timely basis pursuant to the data sharing agreements (collectively, the “JVS Data Sharing Agreements”) between JVS and Independent Evaluator and JVS and SFI each dated as of the date set forth therein, and as each may be amended from time to time.

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