- 6 -
amounts that Westpac would be required to repay to Ambassador
upon termination. This letter included a table entitled “Super
Stores Industries Payback Calculation for Early Contract
Termination” that listed the amount of payments Westpac received
under the contract and the volume of purchases Westpac had
achieved through December 1996. The table calculated the
repayment amount on a pro rata basis in proportion to Westpac's
percentage completion of the volume purchase requirement. After
discussing the possibility of terminating the contract, the
parties decided against it.
American Greetings Contract
On or about January 10, 1991, Save Mart entered into an
agreement with American Greetings Corp. (American Greetings) in
which Save Mart agreed to make American Greetings its “exclusive
supplier” of everyday and seasonal counter cards, tray packs,
wraps, bows, and other auxiliary products. Save Mart further
agreed to maintain in its stores the then-existing lineal footage
dedicated to American Greetings products.
The term of the American Greetings contract ran from
January 1, 1991, to December 31, 1995. If, however, Save Mart
had not purchased $17,970,000 in products from American Greetings
by December 31, 1995, the contract term would be automatically
extended until such time as Westpac met this volume purchase
target.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011