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Cabarrus Arena Management Incentives for FY2007 <br />The current management agreement between Cabarrus County as SMG outlines incentives for <br />SMG to exceed certain performance thresholds, This total fee is composed of a quantitative <br />portion relating to Gross Operating Revenue and a qualitative portion relating to more subjective <br />performance measures. <br />For the year ending June 30, 2007, SMG surpassed the $1,167,200 Gross Operating Revenue <br />threshold for the quantitative fee. Gross Operating Revenue for the year was $1,500,396. Asper <br />the management agreement, SMG should receive an incentive of fifteen percent of all revenue in <br />excess of the threshold. This amounts to $49,979. <br />$1,500,396 Total Gross Revenue <br />- 1167 200 Incentive Threshold <br />$ 333,196 Gross Revenue in excess of Incentive Threshold <br />x 15% Percentage of Excess Revenue to SMG <br />$ 49,979 Quantitative Incentive Due SMG <br />For the same time period, Cabarrus County staff awarded SMG ninety-five of a possible one <br />hundred points in the subjective performance areas of customer service, maintenance and <br />operations, and overall management. Applying the formulas outlined in the management <br />agreement results in a qualitative fee to SMG of $22,563. <br />$23,750 Maximum Qualitative Incentive per Agreement <br />x 95% Percentage of Total Points Awarded to SMG <br />$22,563 Qualitative Incentive Due SMG <br />~- 13 <br />