KemperSports Proposal - Royal Oaks

Fees & Considerations

We appreciate the opportunity to provide our terms and fees for the management of Royal Oaks Country Club. Below outlines our proposed structure for consideration:

Management Agreement

Length

Five (5) Years

Financial Compensation

Base Management Fee

1.5% - 3% of Total Revenue .

Incentive Fee

A merit-based incentive of 10% of the year-over-year increase to Net Operating Income, based upon mutually agreed upon metrics

Termination

Early Termination

Termination available after Year 3 with a 120-day notice

Other Considerations

Corporate services are included in the Base Management Fee, provided that a Controller is on staff; If full accounting is desired, KSM an provide for $3,000/month. Operating expenses to be outlined and approved in operating budget. Reimbursable expense, which the owner will approve in advance of travel. Club to receive real-time discounts at time of purchase as well as all applicable rebates. To be included in the operating budget at $10.81 per employee/per month. Corporate services are included in the Base Management Fee; Direct club marketing expenses to be outlined in operating budget. Corporate Services are Included in the Base Management Fee; Ad Hoc Services will be handled by a TBD local 3 party at the Owner’s approval. rd

Accounting Finance

Corporate Travel

Procurement

Payroll

Sales & Marketing

I.T. Services

Included in the Base Management Fee.

H.R. Compliance

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KemperSports | Royal Oaks Country Club

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