CC PACKET 06271995 - Laserfiche WebLink

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. 2.02 O%vner's Agent. Wherever action or written notice is required or permitted to be taken or delivered by Owner hereunder, such action or notice shall be deemed to have been duly taken or delivered if taken or delivered by the City Manager or the Ow-ner's Liquor Operations Manager. 3. TERM. The term of this Agreement (the "Term") shall commence on the date of this Agreement, and shall expire on a date three (3) years after the date hereof, unless sooner terminated as provided herein. 4. OPERATOR'S FEES. 4.01 First Year Fee. Owner shall pay to Operator a sum (the "First Year Fee") based upon the Net Profits from the Food Service for the first Year of the Term (as such terms are hereafter defined) equal to one-half of each dollar of Net Profits. "Net Profits" shall mean Gross Sales less Operating Costs, as those terms are hereinafter defined. "Operating Costs" shall mean those disbursements and expenses incurred by Owner during the Term in the ordinary course of business and attributable to the operation of the Food Service, including but not limited to the items of expense set forth in Subparagraph 6.01 below. The term "Year" means the 12-month period commencing on the date of this Agreement and each 12-month period thereafter. All amounts for any partial Year shall be prorated. The First Year Fee shall be calculated after the end-of the First Year, and shall be paid within 30 days after the amount has been determined. 4.02 Percentage Fee. After the first Year and for each subsequent Year, Owner shall pay Operator a fee (the "Percentage Fee") equal to 9% of Gross Sales (as hereinafter defined), payable monthly within 15 days after the end of each calendar month. 4.03 Gross Sales_. The term "Gross Sales" shall mean the aggregate amount of all sales (whether for cash, on credit or otherwise) of food (including coffee, tea and milk, but excluding Beverages) for consumption in the Premises so long as they are in connection with the Food Service operation conducted in the Premises, but shall not include any revenues from the sale of Beverages, from the sale of tobacco items, or from any other sources other than the Food Service. Gross Sales also shall not include any federal, state, municipal or other sales taxes, value added or retailer's excise taxes, irrespective of whether such.taxes are collected from customers or absorbed by Owner, proceeds of insurance polices received by Owner,bulk and/or interfacility transfers of food and/or inventory or proceeds from the sale of used equipment. -2-