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By letter dated August 18, 1994, Westpac terminated its
contract with GTE Sylvania effective October 3, 1994, due to lack
of sales volume. The termination letter recognized Westpac's
obligation to repay a prorated portion of the Westpac Allowance.
In December 1994, Westpac repaid GTE Sylvania a prorated amount
totaling $861,857.
Ambassador Contract
On or about August 24, 1990, Westpac entered into an
agreement dated August 14, 1990, with Ambassador Cards
(Ambassador), a division of Hallmark Cards, Inc. Westpac agreed
to maintain Ambassador as its primary supplier of social
expression merchandise and committed its member grocery store
chains (excepting those Save Mart stores which were under an
existing contract with American Greetings Corp.) to purchase
$61,047,000 worth of goods from Ambassador. In exchange,
Ambassador agreed to (1) pay Westpac $4,572,000 upon execution of
the contract; (2) provide each member store a credit equal to the
wholesale value of the opening order of everyday Ambassador
merchandise; (3) issue a quarterly credit to each member grocery
store chain equal to 5 percent of the total net wholesale
purchases of Ambassador products made by Westpac's member stores
as a group; and (4) issue a credit equal to 5 percent of net
wholesale purchases to any store that later became subject to
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Last modified: May 25, 2011