 he
fee for the SVEJDA Quick Start PEP service is a contingency
fee based on the approved annual benefit of approved recommendations
by your management team. SVEJDA is responsible for its
own expenses. Therefore, if you approve none of the recommendations,
there is no fee (and no expense reimbursement).
Our
fee schedule is broken into two parts:
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For
all approved recommendations excluding contracts to be
negotiated by SVEJDA |
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For
Contract Cost Reduction to be negotiated by SVEJDA |
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| PART
I FEE SCHEDULE (FOR ALL APPROVED RECOMMENDATIONS
EXCLUDING CONTRACT COST REDUCTION TO BE NEGOTIATED
BY SVEJDA) |
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The
contingency fee is equal to ½ of the approved estimated
annual benefit (of approved recommendations) for the first
$20,000 of approved benefit and 1/3 of the approved annual
benefit over $20,000, subject to a fee cap. The following
chart breaks down the program fee caps based on the asset
size of the bank.
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Part
I Fee Schedule for Fee Caps Based on Bank
Asset Size
|
-
50% of First $20,000
-1/3 for Balance of Approved Recommendations
Up to Cap |
| Asset
Size of Bank |
Quick
Start Profit Enhancement Program Fee Cap |
Minimum
Annual Profit Enhancement Required for Fee
Cap to Apply |
| $0
- $30 Million |
$15,000 |
$35,000 |
 |
| $30.1
- $50 Million |
$20,000 |
$50,000 |
|
| $50.1
- $75 Million |
$25,000 |
$65,000 |
|
| $75.1
- $100 Million |
$30,000 |
$80,000 |
|
| $100.1
- $150 Million |
$35,000 |
$95,000 |
|
| $150.1
- $200 Million |
$40,000 |
$110,000 |
|
| $200.1
- $250 Million |
$45,000 |
$125,000 |
|
| $250.1
- $300 Million |
$50,000 |
$140,000 |
|
| $300.1
- $350 Million |
$55,000 |
$155,000 |
|
| $350.1
- $400 Million |
$60,000 |
$170,000 |
|
| $400.1
- $450 Million |
$65,000 |
$185,000 |
|
| $450.1
- $500 Million |
$70,000 |
$200,000 |
|
| $500.1
- $600 Million |
$75,000 |
$215,000 |
|
| $600.1
- $700 Million |
$80,000 |
$230,000 |
|
| $700.1
- $800 Million |
$85,000 |
$245,000 |
|
| $800.1
- $900 Million |
$90,000 |
$260,000 |
|
| $900.1
- $1 Billion |
$95,000 |
$275,000 |
|
| Above
$1 Billion |
$95,000
+ $5,000 per additional $100 million or portion
thereof |
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Note:
In the event that none of SVEJDA's recommendations
are approved by bank management for implementation,
there is no fee whatsoever. There are no SVEJDA
expenses reimbursable by the bank and there
are no prepayments or deposits payable before
starting the Quick
Start Program.
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| The
fee for the Part I fee schedule is payable in two installments. |
|
 First
Fee Payment Installment |
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$10,000
is billed as a progress billing within a few days after
the presentation of recommendations and is due within
30 days following presentation of the written recommendations.
Note:
if your bank's management team does not feel comfortable
that they will approve at least $20,000 of annual benefit
from the recommendations presented, this first billing
will be reduced to an amount which is 50% of the amount
of annual benefit your bank's management team is comfortable
that it will likely approve.
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|
Second
Fee Payment Installment |
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The
remaining portion of the fee will be billed after your
bank's management team makes their final decisions regarding
the recommendations presented. The total project fee
will be computed from the approved estimated annual
benefit of approved recommendations. The second billing
will be equal to the total project fee less the amount
of the first progress payment previously made. This
second billing is payable within (10) days of the receipt
by your bank.
Note:
Amortization of Project Fee: Most of our clients treat
the fee for this project as a prepaid expense and amortize
it over a twelve month period.
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| PART
II FEE SCHEDULE (FOR APPROVED RECOMMENDATIONS
INVOLVING CONTRACT COST REDUCTION TO BE NEGOTIATED
BY SVEJDA) |
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| For
each vendor contract that SVEJDA is able to negotiate
that is approved by your bank, a computation will be made
of the annual expense reduction. The annual expense reduction
will be computed based on your bank's current cost for
that service or product at the time the recommendation
is presented to the bank. This computation will be subject
to approval by your bank.
Our
fee schedule for determination of the contingency fee
is as follows:
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One
Year Contract: 35% of the savings |
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Multiple
Year Contract: 35% of the first year benefit; 15%
of each additional year benefit
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