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Purpose
<br />
<br />Terms
<br />
<br />Prices
<br />
<br />Investment
<br />
<br />Incentive Program
<br />
<br />Payment Terms
<br />
<br />Hours of Operation
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<br /> EXHIBIT A
<br /> To
<br />Food Services Management Agreement
<br />By and Between
<br /> Compass Group USA, Inc.
<br /> and
<br /> Cabarrus County, North Carolina
<br />
<br />SERVICES PROGRAM: FEE
<br />
<br />To provide Client with the supply and management of Services in exchange for which Client shall pay to Compass a
<br />Management Fee. Client shall retain all income derived, and bear alt Operating Charges resulting, from the sales of
<br />Food Services or other Services.
<br />
<br />$0-$24,999
<br />$25,000~$29,999
<br />$30,000-$39,999
<br />$40,000-$49,999
<br />$50,000-$59,999
<br />$60,000-$69,999
<br />$70,000-$79,999
<br />$80,000-$89,999
<br />$90,000-$99,999
<br />
<br />$ 100,000 and greater
<br />
<br />Management Fee means an annualized fee in an amount equal to One Hundred Thousand Dollars ($100,000).
<br />Operating Charges means an accrual of charges and expenses incurred or allocated for operation and administra-
<br />tion of Services. Such operation and administration charges and expenses may include, but shall not be limited to,
<br />the following: (i) Purchase or rental, storage, and maintenance of inventory, equipment, and systems; (ii) Clients'
<br />proportionate share (based upon use) of costs for provision of training, relief staff, wage and sal .ay_y, payroll tax,
<br />FICA, FUI, SUI; employee benefits such as medical, dental, life, workers' compensation, and state disability insur-
<br />ance, payroll and benetlt.p)an preparation, processing, and administration all of which shall be. reasonable equiva-
<br />lent to such. benefits provided b.y Client to its employees; (iii) Payment of sales or property taxes, licenses, permits,
<br />rent, special security costs, cash or property losses unrelated to Compass employees; (iv) monthly depreciation of
<br />the Investment as defined below; and (v) Management Fee.
<br />
<br />Prices for the sale of Food Services are determined by mutual consent of Client and Compass On a quarterly basis,
<br />Compass will prepare a market basket analysis comparing the prices charged to Client hereunder to those charged
<br />by competitors located within the same geographic area. In the event, in Client's reasonable,opinion, there is a sub-
<br />stantial discrepancy between the prices chargedby Compass and those charged by Compass competition, Compass
<br />and Client shall immediately renegotiate the prices charged hereunder so that they substantially conform to those
<br />being charged by such competitors.
<br />
<br />Compass will fund certain improvements to Client Premises to facilitate the performance of Services (Investment).
<br />The scope and specifications for such improvements will be mutually agreed in writing by the parties prior to the
<br />disbursement of any Investment funds. Client will hold title to real estate fixtures, equipment, and other items
<br />funded by the Investment. The Investment will be payable in accordance with the disbursement schedule agreed, in
<br />writing, by the parties, and will not exceed, m aggregate, .,, ° .... , ~ , $429,8:25, ^ ~
<br />_e~en_~:ne_ vy mu.aa, agr. e~nen. ~ .... e p=.:e~ The Investment will accrue ~nterest at a rate per annum equal to
<br />.0%{Interest). The. Investmen. t, together with Interest thereon, will be amortized over a period of ten years, calcu-
<br />lated at a rate equal to a straight-line depreciation basis. If the Agreement is terminated, regardless whether a per-
<br />mitred termination by either party, prior to the full amortization of the Investment and Interest, then Client is liable
<br />for and promises to pay to Compass, within 30 days of the termination notice date, the unamgrtized portion of the
<br />Investment with no prepayment penalty.
<br />
<br />Within thirty (30) days prior to the commencement of the second Agreement year hereunder, the parties shall meet
<br />to establish a mutually favorable budget. If the actual net profit (return to the Client after all Operating Charges,
<br />Investment Depreciation Charge, and Management Fee are satisfied) exceeds the budgeted net profit, then Compass
<br />is entitled to receive an incentive mnount as set forth below. Compass shall share, on a pro-rata basis and based
<br />upon tenure of its Employees, 30% of the eamed incentive with the Employees providing Services at the Premises.
<br />
<br />Budget Incentive
<br />
<br /> $0
<br /> $4,500
<br /> $6,000
<br /> $7,500
<br /> $9,000
<br /> $10,500
<br /> $12,000
<br /> $13,500
<br /> $15,000
<br /> $17,000 plus $2,000 per every $10,000 increase
<br />
<br />Net 30 days of Billing Statement date. Billing Statement credits will be made on a cash accrual basis.
<br />
<br />Correspond to customary Client operating hours and days of operation, or as otherwise agreed.
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