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.��'\II►►►. CABARRUS ARENA -Q8, EVENTS CENTER Cabarrus Arena Food & Beverage Management Fees for FY2018 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. Protitabitity-Related Fee For the fiscal year ending June 30, 2018, SMG Food and Beverage produced $96,191 Net Operating Income from operations on $622,476 in Gross Revenue at Cabarrus Arena. Applying the formula specified in the Food and Beverage Services Agreement results in a fee of $31,124 to SMG Food and Beverage. $622,476 Gross Food & Beverage Revenue X 5% Percentage of Gross Revenue Due SMG F&B $ 31,124 Food & Beverage Fee Due SMG F&B Profit Distribution 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 $15,607 to SMG Food and Beverage for the fiscal year ending June 30, 2018. $ 96,191 Net Operating Income -S 31,124 SMG F&B Profitability -Related Fee S 65,067 Positive Net Operating Income Available for Distribution -$ 50,000 Initial Amount to Remain with Facility S 15,067 Positive Net Operating Income Distributed to SMG F&B Total of Food & Beverage Fees Due SMG The total Food & Beverage fees due SMG is $46,191. This includes the $31, l24 profitability -related fee and $15,067 profit distribution described above. Page 97