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Cabarrus Arena Food & Beverage Management Fees for FY2015 The current Food and Beverage Services Agreement between SMG, Cabarrus County, and SMG Food and Beverage, LLC sets a fee schedule if SMG Food and Beverage produces a profit at the Cabarrus Arena location. This schedule ties SMG Food and Beverage fees directly to profitability and provides a method of distributing profits between the parties to the agreement. For the fiscal year ending June 30, 2015, SMG Food and Beverage produced a $121,122 Net Operating Income from operations on $572,256 in Gross Revenue at Cabarrus Arena. Applying the formula specified in the Food and Beverage Services Agreement results in a fee of $28,613 to SMG Food and Beverage. $572,256 Gross Food & Beverage Revenue x 5% Percentage of Gross Revenue Due SMG F &B 0 _5 z , $ 28,613 Food & Beverage Fee Due SMG F &B The current Food and Beverage Services Agreement defines the term "Positive Net Operating Income" as Net Operating Income for the fiscal year less any profitability - related fee for that year. The agreement specifies that the first $50,000 of Net Operating Income remains with the facility, the next $50,000 goes to SMG Food and Beverage, and anything in excess of $100,000 remains with the facility. This distribution results in a total of $50,000 remaining with the facility and $42,509 to SMG Food and Beverage for the fiscal year ending June 30, 2015. $121,122 Net Operating Income -$ 28,613 SMG F &B Profitability - Related Fee $ 92,509 Positive Net Operating Income Available for Distribution -$ 50,000 Initial Amount to Remain with Facility O $ 42,509 Positive Net Operating Income Remaining for Distribution To SMG Food and Beverage c) C-1 d.��eVei-61C e 10d) = 5A I t 1�L_1,00 Attachment number 1 \n F -5 Page 135