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by and between Jamba Juice Company and Southwest
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style+AD0-'font-size:10.0pt'+AD4-Exhibit 10.3
+ADw-/span+AD4APA-/b+AD4APA-/p+AD4- +ADw-p
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style+AD0-'font-size:10.0pt'+AD4AKgAqACo- CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED
HEREWITH MOUNTS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY
REQUEST. OMISSIONS ARE DESIGNATED AS +AFsAKgAqACoAKgBd-. A COMPLETE
VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION.
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style+AD0-'font-size:10.0pt'+AD4-DISTRIBUTION AGREEMENT
+ADw-/span+AD4APA-/u+AD4APA-/p+AD4- +ADw-p align+AD0-center
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style+AD0-'font-size:10.0pt'+AD4-Southwest Traders Inc.
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
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style+AD0-'font-size:10.0pt'+AD4-This Distribution Agreement
(+IBw-Agreement+IB0-) is made and entered into as of the 1st day of
October 2004, by and between Jamba Juice Company, a California
corporation (+IBw-JJC+IB0-), and Southwest Traders Inc, a
California limited liability company (+IBw-Distributor+IB0-) with
respect to the following facts: +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:4.5pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-A. JJC is an operator and
franchiser of retail smoothie and juice stores.
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-B. Distributor is a warehouser and
distributor of dry, chilled and frozen food service products
(+IBw-Products+IB0-). +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
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style+AD0-'font-size:10.0pt'+AD4-C. The parties desire to enter
into a business relationship on the following terms and conditions.
+ADw-/span+AD4APA-/p+AD4- +ADw-p
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style+AD0-'font-size:10.0pt'+AD4-NOW, THEREFORE, in consideration
of the foregoing and in consideration of the covenants, promises,
obligations, and agreements of the parties contained in this
Agreement and other good and valuable consideration, the receipt
and adequacy and sufficiency of which are hereby acknowledged by
each party hereto by its execution hereof, it is hereby agreed as
follows: +ADw-/span+AD4APA-/p+AD4- +ADw-p align+AD0-center
style+AD0-'margin-top:.25in+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-
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style+AD0-'font-size:10.0pt'+AD4-DEFINITIONS AS USED IN THIS
AGREEMENT+ADw-/span+AD4APA-/u+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4- +ADw-/span+AD4APA-/p+AD4-
+ADw-/td+AD4- +ADw-/tr+AD4- +ADw-/table+AD4- +ADw-p
style+AD0-'margin-top:4.5pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4gHAA8-b+AD4-Distributor+ADw-/b+AD4gHQ-
shall mean Southwest Traders Inc. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4gHAA8-b+AD4-Company
Store+ADw-/b+AD4gHQ- shall mean a store owned or operated by JJC.
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4gHAA8-b+AD4-Day
Deliveries+ADw-/b+AD4gHQ- shall mean deliveries that are made
between 6:00 a.m.+IBQ-11:00 a.m. or between 1:00 p.m.+IBQ-9:00 p.m.
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4gHAA8-b+AD4-Default+ADw-/b+AD4gHQ-
shall mean the material failure by either party to meet any of the
terms set forth in this Agreement. +ADw-/span+AD4APA-/p+AD4-
+ADw-div class+AD0-MsoNormal align+AD0-center
style+AD0-'text-align:center'+AD4- +ADw-hr size+AD0-3
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align+AD0-center+AD4- +ADw-/div+AD4- +ADw-p
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4gHAA8-b+AD4-Delivered
Cost+ADw-/b+AD4gHQ- shall mean the sum of Landed Cost and the
applicable distributor +IBw-mark-up+IB0-. +ADw-/span+AD4APA-/p+AD4-
+ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4gHAA8-b+AD4-Delivery Performance
Standard+ADw-/b+AD4gHQ- shall mean Distributor+IBk-s truck and
driver+IBk-s obligation to arrive prepared to deliver Orders within
two (2)+ACY-nbsp+ADs-hours of the scheduled delivery time.
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4gHAA8-b+AD4-Distribution
Territory+ADw-/b+AD4gHQ- shall mean the States of California,
Arizona, Nevada, Colorado, Utah, Idaho, New Mexico, Wyoming,
Oklahoma, and Texas. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4gHAA8-b+AD4-Franchised or Licensed
Store+ADw-/b+AD4gHQ- shall mean a store operated by an entity other
than JJC pursuant to a license agreement or franchise agreement
between JJC and that party. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4gHAA8-b+AD4-Full
Case+ADw-/b+AD4gHQ- shall mean the case in which Distributor
receives the Product from the vendor. +ADw-/span+AD4APA-/p+AD4-
+ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4gHAA8-b+AD4-General
Inventory+ADw-/b+AD4gHQ- shall mean Product that is currently
stocked by Distributor and not at the special request of JJC.
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4gHAA8-b+AD4-Hardpack
Tubs+ADw-/b+AD4gHQ- shall mean frozen yogurts, sherbets, sorbets,
and ice cream/ice milks packed in bulk containers.
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4gHAA8-b+AD4-Incremental Product
Cost+ADw-/b+AD4gHQ- shall mean the cost differential between the
original delivered price of an item and the delivered price of a
substituted item. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4gHAA8-b+AD4-Inventory+ADw-/b+AD4gHQ-
shall mean General Inventory, JJC Critical Inventory, JJC
Proprietary Inventory, Obsolete/Dead Inventory and Slow Inventory.
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4gHAA8-b+AD4-IQF+ADw-/b+AD4gHQ-
shall mean individually quick-frozen, a process used for fruit and
vegetables to preserve the Product. +ADw-/span+AD4APA-/p+AD4-
+ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4gHAA8-b+AD4-Isolated
Stores+ADw-/b+AD4gHQ- shall mean Stores located more than 250 miles
from the closest distribution center of Distributor.
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4gHAA8-b+AD4-JJC Critical
Inventory+ADw-/b+AD4gHQ- shall mean all Hardpack Tubs, juice
concentrates, IQF fruit, soymilk, fresh produce, frozen bread
products, and proprietary straws, cups, lids and napkins.
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4gHAA8-b+AD4-JJC Proprietary
Inventory+ADw-/b+AD4gHQ- shall mean Product that is labeled or
printed with the Jamba Juice logo, which is not to be sold to any
customer other than the Stores, or which is purchased at the
request of JJC and not otherwise stocked by Distributor.
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4gHAA8-b+AD4-Key Drop
Deliveries+ADw-/b+AD4gHQ- shall mean deliveries completed via key
drop between the time of the Store closing (or 9:00 p.m., whichever
is earlier+ADs- except for any Store that normally has significant
sales volumes after 9:00 p.m., then the time will be 10:00 p.m.)
and Store opening (or 6:00 a.m., whichever is later).
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align+AD0-center+AD4- +ADw-/div+AD4- +ADw-p
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4gHAA8-b+AD4-Landed
Cost+ADw-/b+AD4gHQ- shall mean the Product cost F.O.B. origin plus
inbound freight costs to Distributor+IBk-s distribution center, as
may be adjusted as provided in this Agreement, excluding early pay
discounts, spoilage and other allowances. +ADw-/span+AD4APA-/p+AD4-
+ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4gHAA8-b+AD4-Month+ADw-/b+AD4gHQ-
shall mean a calendar month. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4gHAA8-b+AD4-Obsolete/Dead
Inventory+ADw-/b+AD4gHQ- shall mean Products that do not move in a
sixty (60)+IBQ-day period from the date of receipt by Distributor
or that have been discontinued by JJC. +ADw-/span+AD4APA-/p+AD4-
+ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4gHAA8-b+AD4-Orders+ADw-/b+AD4gHQ-
shall mean orders for Product submitted to Distributor by JJC.
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4gHAA8-b+AD4-Other
Distributors+ADw-/b+AD4gHQ- shall mean other Distribution
Company+IBk-s in which JJC is currently utilizing for service to
its+IBk- stores. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4gHAA8-b+AD4-Product(s)+ADw-/b+AD4gHQ-
shall mean all products purchased by JJC under this Agreement.
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4gHAA8-b+AD4-Service
Levels+ADw-/b+AD4gHQ- shall mean a fraction, expressed as a
percentage, whose numerator is the total number of items in an
Order actually received and whose denominator is the total number
of items in an Order. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4-+ADw-span
style+AD0-'font-size:10.0pt'+AD4gHAA8-b+AD4-Slow
Inventory+ADw-/b+AD4gHQ- shall mean Products that move five Full
Cases or less within a 30-day period. +ADw-/span+AD4APA-/p+AD4-
+ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4gHAA8-b+AD4-Stores+ADw-/b+AD4gHQ-
shall mean, individually or collectively, Company Stores and/or
Franchised or Licensed Stores, as the context so permits or
requires. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4gHAA8-b+AD4-Supply+ADw-/b+AD4gHQ-
or +IBwAPA-b+AD4-Supplying+ADw-/b+AD4gHQ- has the meaning given to
those terms in Section+ACY-nbsp+ADs-2. +ADw-/span+AD4APA-/p+AD4-
+ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4gHAA8-b+AD4-Business
Day+ADw-/b+AD4gHQ- shall be Monday+ACY-nbsp+ADsgEw- Friday, from
8am to 5pm. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4gHAA8-b+AD4-Extreme Remote
Location+ADw-/b+AD4gHQ- shall mean any store that is 300 miles or
more away from any other JJC store. +ADw-/span+AD4APA-/p+AD4-
+ADw-p style+AD0-'margin:0in+ADs-margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:13.5pt'+AD4AJg-nbsp+ADsAPA-o:p+AD4APA-/o:p+AD4APA-/span+AD4APA-/p+AD4-
+ADw-table class+AD0-MsoNormalTable border+AD0-0 cellspacing+AD0-0
cellpadding+AD0-0 width+AD0AIg-100+ACUAIg-
style+AD0-'width:100.0+ACUAOw-border-collapse:collapse+ADs-mso-padding-alt:0in
0in 0in 0in'+AD4- +ADw-tr
style+AD0-'mso-yfti-irow:0+ADs-mso-yfti-firstrow:yes+ADs-mso-yfti-lastrow:yes'+AD4-
+ADw-td width+AD0AIg-4+ACUAIg- valign+AD0-top
style+AD0-'width:4.0+ACUAOw-padding:0in 0in 0in 0in'+AD4- +ADw-p
class+AD0-MsoNormal+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-2.+ADw-/span+AD4APA-/p+AD4-
+ADw-/td+AD4- +ADw-td valign+AD0-top style+AD0-'padding:0in 0in 0in
0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-u+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-DISTRIBUTION
SERVICES+ADw-/span+AD4APA-/u+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4- +ADw-/span+AD4APA-/p+AD4-
+ADw-/td+AD4- +ADw-/tr+AD4- +ADw-/table+AD4- +ADw-p
style+AD0-'margin-top:4.5pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-2.1 +ADw-u+AD4-Distribution for
Company Stores+ADw-/u+AD4-. During the term of this Agreement,
Distributor shall be the exclusive purchaser, warehouser, and
distributor of all Products (with the exception of test items,
equipment, marketing items and uniforms), as needed, to JJC Stores
for the Distribution Territory. Distributor+IBk-s services shall
include the purchase, warehouse, and distribution of Products to
meet the requirements of JJC for sale in the Company Stores as
described herein. (hereafter, +IBwAPA-b+AD4-Supply+ADw-/b+AD4gHQ-
or +IBwAPA-b+AD4-Supplying+ADw-/b+AD4gHQ-).
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-2.2 +ADw-u+AD4-Distribution for
Franchised or Licensed Stores+ADw-/u+AD4-. During the term of this
Agreement, Distributor agrees to offer to Supply any Franchised or
Licensed Stores within the Distribution Territory on substantially
the same terms and conditions as herein contained, provided such
Franchised or Licensed Store shall have established and shall have
maintained its creditworthiness to Distributor+IBk-s reasonable
satisfaction. Distributor may discontinue Supplying any Franchised
or Licensed Store upon the material failure of such Store to comply
with the +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:7.5pt'+AD4AJg-nbsp+ADsAPA-/span+AD4APA-/p+AD4-
+ADw-p align+AD0-center
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt+ADs-text-align:center'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-3 +ADw-/span+AD4APA-/p+AD4-
+ADw-div class+AD0-MsoNormal align+AD0-center
style+AD0-'text-align:center'+AD4- +ADw-hr size+AD0-3
width+AD0AIg-100+ACUAIg- noshade color+AD0AIgAj-999999+ACI-
align+AD0-center+AD4- +ADw-/div+AD4- +ADw-p
style+AD0-'margin-top:0in+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:24.45pt+ADs-
margin-bottom:.0001pt'+AD4APA-b+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4AKgAqACo- CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED
HEREWITH MOUNTS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY
REQUEST. OMISSIONS ARE DESIGNATED AS +AFsAKgAqACoAKgBd-. A COMPLETE
VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION.
+ADw-/span+AD4APA-/b+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:7.5pt'+AD4AJg-nbsp+ADsAPA-/span+AD4APA-/p+AD4-
+ADw-p style+AD0-'margin:0in+ADs-margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-applicable terms of the agreement
with the Store+ADs- provided, that Distributor shall first have
given written notice thereof to JJC and allowed JJC a reasonable
time period (not to exceed 30 days) to contact the Franchised or
Licensed Store for purposes of correcting such failure. Distributor
acknowledges and agrees that JJC shall not have any liability or
responsibility for any obligations of a Franchised or Licensed
Store to Distributor, including, without limitation, for payment
for Products Supplied to Franchised or Licensed Stores. Any failure
of a Franchised Partner store to meet Credit Terms as established
in section+ACY-nbsp+ADs-5 of this agreement may be placed on C.O.D.
terms. If a store fails to meet the requirements under C.O.D.
terms, then the store can be placed on a prepayment basis.
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-2.3 +ADw-u+AD4-Appointment of
Liaisons+ADw-/u+AD4-. Distributor and JJC shall each designate a
managerial level person as a designated liaison to facilitate the
performance of this Agreement. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-2.4 +ADw-u+AD4-Master Distribution
Relationship+ADw-/u+AD4-. Distributor will act as a +IBw-Master
Distributor+IB0- by consolidating shipments to remote, smaller
distribution centers, in which SWT is selling inventory to a third
party distributor. For Hawaii shipments, the following fee schedule
will apply: Full container pick up at Distributor FOB point
+AFsAKgAqACoAKgBdADs- delivered to dry dock full truck load will be
at +AFsAKgAqACoAKgBdADs- full truckload frozen will be at
+AFsAKgAqACoAKgBd-. For shipments to other JJC approved
Distribution Centers: inventory will be charged a
+AFsAKgAqACoAKgBd- mark-up. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-Product will be verified at time
of delivery to California forwarder. The load becomes the
responsibility of freight forwarder once invoice is signed by
freight forwarder. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:13.5pt'+AD4AJg-nbsp+ADsAPA-o:p+AD4APA-/o:p+AD4APA-/span+AD4APA-/p+AD4-
+ADw-table class+AD0-MsoNormalTable border+AD0-0 cellspacing+AD0-0
cellpadding+AD0-0 width+AD0AIg-100+ACUAIg-
style+AD0-'width:100.0+ACUAOw-border-collapse:collapse+ADs-mso-padding-alt:0in
0in 0in 0in'+AD4- +ADw-tr
style+AD0-'mso-yfti-irow:0+ADs-mso-yfti-firstrow:yes+ADs-mso-yfti-lastrow:yes'+AD4-
+ADw-td width+AD0AIg-4+ACUAIg- valign+AD0-top
style+AD0-'width:4.0+ACUAOw-padding:0in 0in 0in 0in'+AD4- +ADw-p
class+AD0-MsoNormal+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-3.+ADw-/span+AD4APA-/p+AD4-
+ADw-/td+AD4- +ADw-td valign+AD0-top style+AD0-'padding:0in 0in 0in
0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-u+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-TERM+ADw-/span+AD4APA-/u+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4- +ADw-/span+AD4APA-/p+AD4-
+ADw-/td+AD4- +ADw-/tr+AD4- +ADw-/table+AD4- +ADw-p
style+AD0-'margin-top:4.5pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-This Agreement shall commence for
all Distribution Territories (excluding Texas and Oklahoma
territory) on October+ACY-nbsp+ADs-1, 2004 and continue for a
three-year and 3+ACY-nbsp+ADs-month period ending
December+ACY-nbsp+ADs-31, 2007 (Texas and Oklahoma Territories will
commence on December+ACY-nbsp+ADs-13, 2004 for a three-year period
ending December+ACY-nbsp+ADs-31, 2007) or, if the term of this
Agreement is extended pursuant to the immediately succeeding
sentence, until December+ACY-nbsp+ADs-31, 2009. JCC shall have the
right, as mutually agreed upon, exercisable upon written notice
given to Distributor on or before September+ACY-nbsp+ADs-30, 2007,
to extend the term, all in accordance with and subject to the terms
and conditions hereof, for an additional two-year period commencing
January+ACY-nbsp+ADs-1, 2008 and continuing until
December+ACY-nbsp+ADs-31, 2009. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:13.5pt'+AD4AJg-nbsp+ADsAPA-o:p+AD4APA-/o:p+AD4APA-/span+AD4APA-/p+AD4-
+ADw-table class+AD0-MsoNormalTable border+AD0-0 cellspacing+AD0-0
cellpadding+AD0-0 width+AD0AIg-100+ACUAIg-
style+AD0-'width:100.0+ACUAOw-border-collapse:collapse+ADs-mso-padding-alt:0in
0in 0in 0in'+AD4- +ADw-tr
style+AD0-'mso-yfti-irow:0+ADs-mso-yfti-firstrow:yes+ADs-mso-yfti-lastrow:yes'+AD4-
+ADw-td width+AD0AIg-4+ACUAIg- valign+AD0-top
style+AD0-'width:4.0+ACUAOw-padding:0in 0in 0in 0in'+AD4- +ADw-p
class+AD0-MsoNormal+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-4.+ADw-/span+AD4APA-/p+AD4-
+ADw-/td+AD4- +ADw-td valign+AD0-top style+AD0-'padding:0in 0in 0in
0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-u+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-PRICING POLICIES AND PRICE
LISTS+ADw-/span+AD4APA-/u+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-. +ADw-/span+AD4APA-/p+AD4-
+ADw-/td+AD4- +ADw-/tr+AD4- +ADw-/table+AD4- +ADw-p
style+AD0-'margin-top:4.5pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-This Section sets forth the basic
pricing, applicable discounts and price reporting. No changes shall
be made to any of these provisions without the prior written
approval of the JJC Chief Financial Officer or the JJC Director,
Supply Chain Management. Distributor agrees to offer the same
pricing and discounts it provides to JJC to each of the Franchised
or Licensed Stores. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:7.5pt'+AD4AJg-nbsp+ADsAPA-/span+AD4APA-/p+AD4-
+ADw-p align+AD0-center
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt+ADs-text-align:center'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-4 +ADw-/span+AD4APA-/p+AD4-
+ADw-div class+AD0-MsoNormal align+AD0-center
style+AD0-'text-align:center'+AD4- +ADw-hr size+AD0-3
width+AD0AIg-100+ACUAIg- noshade color+AD0AIgAj-999999+ACI-
align+AD0-center+AD4- +ADw-/div+AD4- +ADw-p
style+AD0-'margin-top:0in+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:24.45pt+ADs-
margin-bottom:.0001pt'+AD4APA-b+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4AKgAqACo- CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED
HEREWITH MOUNTS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY
REQUEST. OMISSIONS ARE DESIGNATED AS +AFsAKgAqACoAKgBd-. A COMPLETE
VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION.+ADw-/span+AD4APA-/b+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4- +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:7.5pt'+AD4AJg-nbsp+ADsAPA-/span+AD4APA-/p+AD4-
+ADw-p style+AD0-'margin:0in+ADs-margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-The pricing structure for JJC
shall be as follows: +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:4.5pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-4.1 +ADw-u+AD4-Directed
Pricing+ADw-/u+AD4-. JJC will provide a +IBw-Directed+IB0- pricing
model to the Distribution Center on or about the 20th of each
month, in which contracted products are listed with FOB origin,
inbound freight, landed costs and delivered pricing to the stores
for said month. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-line-height:95+ACUAOw-vertical-align:top'+AD4APA-span
style+AD0-'font-size:10.0pt+ADs-line-height:95+ACU-'+AD4-Distributor+IBk-s
request for updates to pricing must be submitted to JJC+IBk-s
Contract Compliance Coordinator no later than the
15+ADw-/span+AD4APA-sup+AD4APA-span
style+AD0-'font-size:7.5pt+ADs-line-height:95+ACUAOw-color:black'+AD4-th+ADw-/span+AD4APA-/sup+AD4APA-span
style+AD0-'font-size:10.0pt+ADs-line-height:95+ACUAOw-color:black'+AD4-
of the month prior to the month they will take affect.
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-Distributor agrees to sell all
Products as calculated in the +IBw-Directed+IB0- pricing model,
using Distributor+IBk-s Landed Cost plus +IBw-standard mark-up+IB0-
percent. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-It is the Distributors
responsibility to review the information for accuracy and to report
any discrepancies within three Business Days of receipt of directed
pricing. All pricing for that month shall remain fixed with no
variability in an effort to ensure consistent cost of goods and
invoice accuracy. All JJC+IBk-s non-contracted items may be
reviewed and submitted to JJC for pricing updates on a monthly
basis. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-In the event of unstable pricing
due to the enactment of +IBw-act of god clauses+IB0-, pricing will
be adjusted on an +IBw-as need basis.+IB0- JJC and Distributor will
work together to determine fair and equitable pricing.
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-Distributor shall have the right
of first refusal to match the delivered cost to JJC Stores for
products that are not delivered by Distributor, which shall remain
firm for the duration of that specific contract. Any changes to the
above pricing formula must have the prior written approval of the
JJC+IBk-s Director of Supply Chain Management.
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-4.2 +ADw-u+AD4-Basic
Prices+ADw-/u+AD4-. The pricing structure shall be as follows:
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:4.5pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:48.95pt'+AD4APA-u+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-Standard
Mark-Up+ADw-/span+AD4APA-/u+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-. Unless otherwise provided in
this Agreement, Distributor shall sell all Products at
Distributor+IBk-s Landed Cost plus +IBw-standard mark-up+IB0-
(landed cost multiplied by percentage mark-up). Standard Mark-up is
defined by the following declining scale and is based upon a
+ACQ-1,000 minimum order per delivery: +ADw-/span+AD4APA-/p+AD4-
+ADw-p
style+AD0-'margin-top:4.5pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt'+AD4APA-b+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-Coverage
Area:+ADw-/span+AD4APA-/b+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4- California, Nevada, Arizona,
Colorado, Idaho, Utah, and New Mexico +ADw-/span+AD4APA-/p+AD4-
+ADw-p
style+AD0-'margin-top:4.5pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:24.45pt+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4AWwAqACoAKgAqAF0- from
October+ACY-nbsp+ADs-1, 2004+IBQ-December 31, 2005
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:0in+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:24.45pt+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4AWwAqACoAKgAqAF0- from
January+ACY-nbsp+ADs-1, 2006+IBQ-December 31, 2006
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:0in+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:24.45pt+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4AWwAqACoAKgAqAF0- from
January+ACY-nbsp+ADs-1, 2007+IBQ-December 31, 2007
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:0in+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:24.45pt+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-Extended term mark-up percentage
to be negotiated +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:7.5pt'+AD4AJg-nbsp+ADsAPA-/span+AD4APA-/p+AD4-
+ADw-p align+AD0-center
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt+ADs-text-align:center'+AD4-+ADw-span
style+AD0-'font-size:10.0pt'+AD4-5 +ADw-/span+AD4APA-/p+AD4-
+ADw-div class+AD0-MsoNormal align+AD0-center
style+AD0-'text-align:center'+AD4- +ADw-hr size+AD0-3
width+AD0AIg-100+ACUAIg- noshade color+AD0AIgAj-999999+ACI-
align+AD0-center+AD4- +ADw-/div+AD4- +ADw-p
style+AD0-'margin-top:0in+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:24.45pt+ADs-
margin-bottom:.0001pt'+AD4APA-b+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4AKgAqACo- CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED
HEREWITH MOUNTS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY
REQUEST. OMISSIONS ARE DESIGNATED AS +AFsAKgAqACoAKgBd-. A COMPLETE
VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION.+ADw-/span+AD4APA-/b+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4- +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:7.5pt'+AD4AJg-nbsp+ADsAPA-/span+AD4APA-/p+AD4-
+ADw-p
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt'+AD4APA-b+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-Coverage
Area:+ADw-/span+AD4APA-/b+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4- Texas, Oklahoma
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:4.5pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:24.45pt+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4AWwAqACoAKgAqAF0- from
January+ACY-nbsp+ADs-1, 2005+IBQ-December 31, 2005
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:0in+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:24.45pt+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4AWwAqACoAKgAqAF0- from
January+ACY-nbsp+ADs-1, 2006+IBQ-December 31, 2006
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:0in+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:24.45pt+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4AWwAqACoAKgAqAF0- from
January+ACY-nbsp+ADs-1, 2007+IBQ-December 31, 2007
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:0in+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:24.45pt+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-Extended term mark-up percentage
to be negotiated +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-4.3 +ADw-u+AD4-Adjustments and
Discounts+ADw-/u+AD4-. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:4.5pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:48.95pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-(a) +ADw-u+AD4-Ordering
Discounts+ADw-/u+AD4-. Single Invoices exceeding +AFsAKgAqACoAKgBd-
receive a +AFsAKgAqACoAKgBd- discount, taken immediately on the
respective invoice. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:48.95pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-(b) +ADw-u+AD4-Minimum Order
Surcharge+ADw-/u+AD4-. Order+IBk-s not meeting the minimum order
requirement of +AFsAKgAqACoAKgBd- will be assessed a surcharge of
+AFsAKgAqACoAKgBd- per dollar, for every dollar short of the
minimum. These surcharges are not to exceed +AFsAKgAqACoAKgBd-, and
will not be applied to emergency orders, or off day orders, that
are subject to the unscheduled delivery surcharges.
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:48.95pt+ADs-line-height:95+ACUAOw-vertical-align:top'+AD4APA-span
style+AD0-'font-size:10.0pt+ADs-line-height:95+ACU-'+AD4-(c)
+ADw-u+AD4-Missed Delivery Charge+ADw-/u+AD4-. In the event that a
store has signed up for 2 or 3 times a week delivery, and the
2+ADw-/span+AD4APA-sup+AD4APA-span
style+AD0-'font-size:7.5pt+ADs-line-height:95+ACUAOw-color:black'+AD4-nd+ADw-/span+AD4APA-/sup+AD4APA-span
style+AD0-'font-size:10.0pt+ADs-line-height:95+ACUAOw-color:black'+AD4-
or 3+ADw-/span+AD4APA-sup+AD4APA-span
style+AD0-'font-size:7.5pt+ADs-line-height:95+ACUAOw-color:black'+AD4-rd+ADw-/span+AD4APA-/sup+AD4APA-span
style+AD0-'font-size:10.0pt+ADs-line-height:95+ACUAOw-color:black'+AD4-
delivery is not utilized, the store will be charges
+AFsAKgAqACoAKgBd- for missing a scheduled delivery.
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:48.95pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-(d) +ADw-u+AD4-Restocking
Fee+ADw-/u+AD4-. There will be a +AFsAKgAqACoAKgBd- restocking fee
applied to any Store that returns items that were ordered and
delivered or on truck to be delivered. +ADw-/span+AD4APA-/p+AD4-
+ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:48.95pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-(e) +ADw-u+AD4-Committed Delivery
Schedules+ADw-/u+AD4-. Stores must commit to a specified delivery
schedule, in which adjustments can be made to their schedule on a
system wide basis twice per year. The available committed delivery
schedules and periods consist of one (1), two (2), or three
(3)+ACY-nbsp+ADs-day per week delivery schedules fixed for one or
more of the following periods: March+IBQ-October+ADs-
October+IBQ-March. Distributor will notify each Store in at least
two (2)+ACY-nbsp+ADs-weeks prior to the start of each period of its
option to submit in writing to Distributor its delivery schedule
commitment for the subsequent period. If a Store does not submit a
delivery commitment notice to Distributor prior to the start of a
period, then the delivery schedule from the preceding period will
apply. Stores may change their delivery commitment once during each
period without charge or other penalty and Distributor may request
a change to a Store+IBk-s delivery commitment, as long as the
change does not adversely affect the Store.
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-4.4 +ADw-u+AD4-Pricing
Information+ADw-/u+AD4-. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:4.5pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:48.95pt+ADs-line-height:95+ACUAOw-vertical-align:top'+AD4APA-span
style+AD0-'font-size:10.0pt+ADs-line-height:95+ACU-'+AD4-(a)
+ADw-u+AD4-Directed Pricing Worksheet+ADw-/u+AD4-. On or before the
twentieth (20)+ADw-/span+AD4APA-sup+AD4APA-span
style+AD0-'font-size:7.5pt+ADs-
line-height:95+ACUAOw-color:black'+AD4-th+ADw-/span+AD4APA-/sup+AD4APA-span
style+AD0-'font-size:10.0pt+ADs-
line-height:95+ACUAOw-color:black'+AD4- day of each Month, JJC
shall provide the Distributor with +IBw-directed pricing+IB0- for
the up-coming months order guide. The Distributor shall complete
the template by inserting expected pricing for the up-coming month
and then send the template to JJC+IBk-s Contract Compliance
Coordinator via email. All variances to JJC+IBk-s Directed Price
must be approved prior to producing an order guide. Once prices are
agreed upon, the price for all Products designated by JJC in the
Directed Pricing model shall be in effect for the entire following
Month starting on the first day of that Month.
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:7.5pt'+AD4AJg-nbsp+ADsAPA-/span+AD4APA-/p+AD4-
+ADw-p align+AD0-center
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt+ADs-text-align:center'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-6 +ADw-/span+AD4APA-/p+AD4-
+ADw-div class+AD0-MsoNormal align+AD0-center
style+AD0-'text-align:center'+AD4- +ADw-hr size+AD0-3
width+AD0AIg-100+ACUAIg- noshade color+AD0AIgAj-999999+ACI-
align+AD0-center+AD4- +ADw-/div+AD4- +ADw-p
style+AD0-'margin-top:0in+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:24.45pt+ADs-
margin-bottom:.0001pt'+AD4APA-b+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4AKgAqACo- CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED
HEREWITH MOUNTS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY
REQUEST. OMISSIONS ARE DESIGNATED AS +AFsAKgAqACoAKgBd-. A COMPLETE
VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION.+ADw-/span+AD4APA-/b+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4- +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:7.5pt'+AD4AJg-nbsp+ADsAPA-/span+AD4APA-/p+AD4-
+ADw-p
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt+ADs-text-indent:48.95pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-(b) +ADw-u+AD4-Customized Order
Guides+ADw-/u+AD4-. Distributor agrees to provide
monthly-customized order guides for Stores as requested by JJC.
Distributor will deliver to each Store a copy of the order guide by
the first day of each Month. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:48.95pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-(c) +ADw-u+AD4-Pricing by Landed
FOB points+ADw-/u+AD4-. Pricing will be based upon the following
FOB points and will only be changed with written authorization from
the Manager of Supply Chain+ACY-nbsp+ADsAJg-amp+ADs- Logistics:
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:4.5pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-Temecula, California+ADs-
Sacramento, California+ADs- Denver, Colorado+ADs- Dallas, Texas
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-FOB pricing in Arizona to begin no
later than January+ACY-nbsp+ADs-1, 2006. +ADw-/span+AD4APA-/p+AD4-
+ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-FOB pricing in Houston, TX will be
authorized at which time store growth allows for sustainable Full
Truck Load (FTL) purchasing brackets. +ADw-/span+AD4APA-/p+AD4-
+ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:48.95pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-(d) +ADw-u+AD4-Mark-up Review
Trigger+ADw-/u+AD4-. As protection against margin diluting due to
average cost of goods dropping, a review of current case cost by
market area will be done periodically and a drop greater than
+AFsAKgAqACoAKgBd- will trigger a review to determine if margin
needs to be enhanced to allow Distributor to equal the GP dollars
afforded at the beginning of this contract.
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-(Example: Temecula average landed
cost is +AFsAKgAqACoAKgBd- per case. If the product value were to
fall below +AFsAKgAqACoAKgBd- then Product margin would be
increased to enable Distributor the gross profit dollars equal to
what would have been gained at the +AFsAKgAqACoAKgBd- value.)
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:48.95pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-(e) +ADw-u+AD4-Product
+IBw-transfer+IB0- pricing+ADw-/u+AD4-. Products that are
+IBw-transferred+IB0- between Distributors+IBk- own facilities will
be at the sole expense of the distributor, unless specifically
requested by JJC. If JJC requests inventory to be
+IBw-transferred+IB0-, the following fees schedule will apply:
(i)+ACY-nbsp+ADs-Regular transfers between Temecula and Sacramento
will be priced at a +AFsAKgAq-+ACoAKgBd- mark-up
(ii)+ACY-nbsp+ADs-Emergency transfers at the request of JJC or JJC
vendors between Temecula and Sacramento will be priced at
+AFsAKgAqACoAKgBd- per pallet unless otherwise mutually negotiated,
at time of emergency, at a common carrier competitive rate
(iii)+ACY-nbsp+ADs-Regular transfers from Temecula to Denver or
Dallas will be based on a +IBw-carrier quote.+IB0- In the event
Distributor exercises the option to utilize its+IBk- own trucks,
the transfer fee will be based on +IBw-full truck load+IB0-
pricing. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-Mark-up fees will not apply to
+IBw-transfers+IB0- made to any non-recognized FOB points.
Currently, Houston and Arizona are handled at Distributors+IBk-
expense. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-4.5 +ADw-u+AD4-Audit
Rights+ADw-/u+AD4-. Distributor shall prepare and maintain, in
accordance with generally accepted accounting principles
consistently applied, complete and accurate books of account and
records (specifically including, without limitation, the originals
or copies of documents supporting entries in the books of account)
covering and limited to all transactions arising out of or relating
to this Agreement. JJC and its duly authorized representatives have
the +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:7.5pt'+AD4AJg-nbsp+ADsAPA-/span+AD4APA-/p+AD4-
+ADw-p align+AD0-center
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt+ADs-text-align:center'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-7 +ADw-/span+AD4APA-/p+AD4-
+ADw-div class+AD0-MsoNormal align+AD0-center
style+AD0-'text-align:center'+AD4- +ADw-hr size+AD0-3
width+AD0AIg-100+ACUAIg- noshade color+AD0AIgAj-999999+ACI-
align+AD0-center+AD4- +ADw-/div+AD4- +ADw-p
style+AD0-'margin-top:0in+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:24.45pt+ADs-
margin-bottom:.0001pt'+AD4APA-b+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4AKgAqACo- CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED
HEREWITH MOUNTS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY
REQUEST. OMISSIONS ARE DESIGNATED AS +AFsAKgAqACoAKgBd-. A COMPLETE
VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION.+ADw-/span+AD4APA-/b+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4- +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:7.5pt'+AD4AJg-nbsp+ADsAPA-/span+AD4APA-/p+AD4-
+ADw-p style+AD0-'margin:0in+ADs-margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-right, during regular business
hours, for the duration of this Agreement and for two
(2)+ACY-nbsp+ADs-years thereafter, to examine and audit, and make
extracts from, such books of account and records and all other
documents and material in the possession or under the control of
Distributor with respect to the subject matter and the terms of
this Agreement. All such books of account, records and documents
shall be kept available by Distributor for at least two
(2)+ACY-nbsp+ADs-years after the end of the period to which they
relate. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:13.5pt'+AD4AJg-nbsp+ADsAPA-o:p+AD4APA-/o:p+AD4APA-/span+AD4APA-/p+AD4-
+ADw-table class+AD0-MsoNormalTable border+AD0-0 cellspacing+AD0-0
cellpadding+AD0-0 width+AD0AIg-100+ACUAIg-
style+AD0-'width:100.0+ACUAOw-border-collapse:collapse+ADs-mso-padding-alt:0in
0in 0in 0in'+AD4- +ADw-tr
style+AD0-'mso-yfti-irow:0+ADs-mso-yfti-firstrow:yes+ADs-mso-yfti-lastrow:yes'+AD4-
+ADw-td width+AD0AIg-4+ACUAIg- valign+AD0-top
style+AD0-'width:4.0+ACUAOw-padding:0in 0in 0in 0in'+AD4- +ADw-p
class+AD0-MsoNormal+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-5.+ADw-/span+AD4APA-/p+AD4-
+ADw-/td+AD4- +ADw-td valign+AD0-top style+AD0-'padding:0in 0in 0in
0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-u+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-CREDIT
TERMS+ADw-/span+AD4APA-/u+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4- +ADw-/span+AD4APA-/p+AD4-
+ADw-/td+AD4- +ADw-/tr+AD4- +ADw-/table+AD4- +ADw-p
style+AD0-'margin-top:4.5pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-All JJC Franchisees will complete
the Distributors credit application and all related paperwork.
Credit terms for stores with no outstanding balances are net twenty
(20)+ACY-nbsp+ADs-day terms from the date of delivery. The
Distributor may require JJC to make payments on a C.O.D. basis in
the event JJC+IBk-s average outstanding accounts payable to the
Distributor exceeds thirty (30)+ACY-nbsp+ADs-days. In the event
that JJC accounts payable to the Distributor is not within terms,
no discounts or rebates will be issued to JJC.
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-Distributor shall issue a
+AFsAKgAqACoAKgBd- discount on payments made within fifteen
(15)+ACY-nbsp+ADs-days, provided there are no past due balances due
from JJC. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:13.5pt'+AD4AJg-nbsp+ADsAPA-o:p+AD4APA-/o:p+AD4APA-/span+AD4APA-/p+AD4-
+ADw-table class+AD0-MsoNormalTable border+AD0-0 cellspacing+AD0-0
cellpadding+AD0-0 width+AD0AIg-100+ACUAIg-
style+AD0-'width:100.0+ACUAOw-border-collapse:collapse+ADs-mso-padding-alt:0in
0in 0in 0in'+AD4- +ADw-tr
style+AD0-'mso-yfti-irow:0+ADs-mso-yfti-firstrow:yes+ADs-mso-yfti-lastrow:yes'+AD4-
+ADw-td width+AD0AIg-4+ACUAIg- valign+AD0-top
style+AD0-'width:4.0+ACUAOw-padding:0in 0in 0in 0in'+AD4- +ADw-p
class+AD0-MsoNormal+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-6.+ADw-/span+AD4APA-/p+AD4-
+ADw-/td+AD4- +ADw-td valign+AD0-top style+AD0-'padding:0in 0in 0in
0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4-+ADw-u+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-DELIVERY
SERVICE+ADw-/span+AD4APA-/u+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4- +ADw-/span+AD4APA-/p+AD4-
+ADw-/td+AD4- +ADw-/tr+AD4- +ADw-/table+AD4- +ADw-p
style+AD0-'margin-top:4.5pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-6.1 +ADw-u+AD4-Delivery
Schedule+ADw-/u+AD4-. Distributor shall provide Stores with one
(1), two (2)+ACY-nbsp+ADs-or three (3)+ACY-nbsp+ADs-deliveries per
week. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-6.2 +ADw-u+AD4-Delivery
Method+ADw-/u+AD4-. Distributor shall deliver Products to the
Stores with trucks predominantly dedicated to the Products. Stores
unable to accept a Key Drop delivery will have Day Deliveries.
Distributor may from time to time utilize common or other delivery
services (for example, UPS or Federal Express) to ship Product to
the Stores as long as the Delivered Cost is equal to or less than
the Delivered Cost then in effect for the Product. Any increase in
Delivered Cost as a result of utilizing an alternative delivery
system must be approved in writing by JJC Purchasing prior to
invoicing. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-6.3 +ADw-u+AD4-Order
Procedure+ADw-/u+AD4-. All Orders will be faxed or called into
Distributor by the mutually agreed-upon cut-off time
(Distributor+IBk-s cut-off time is Noon). Ordering deadlines may be
varied by region, and may be adjusted as necessary with mutual
agreement in order to accommodate increased Store ordering
activity. A late fee of +ACQ-25.00 shall be added to Orders that a
re received after the applicable deadline, unless Distributor
caused the delay. Distributor shall offer a toll-free 800 number
for placing Orders and for responding to customer service issues.
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-6.4 +ADw-u+AD4-Customer Service
Matters+ADw-/u+AD4-. If requested by JJC, Distributor agrees to
develop a computer based ordering system that is compatible with
each Store and JJC+IBk-s corporate office computer network during
the term of the Agreement. Distributor agrees to provide a
dedicated +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:7.5pt'+AD4AJg-nbsp+ADsAPA-/span+AD4APA-/p+AD4-
+ADw-p align+AD0-center
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt+ADs-text-align:center'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-8 +ADw-/span+AD4APA-/p+AD4-
+ADw-div class+AD0-MsoNormal align+AD0-center
style+AD0-'text-align:center'+AD4- +ADw-hr size+AD0-3
width+AD0AIg-100+ACUAIg- noshade color+AD0AIgAj-999999+ACI-
align+AD0-center+AD4- +ADw-/div+AD4- +ADw-p
style+AD0-'margin-top:0in+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:24.45pt+ADs-
margin-bottom:.0001pt'+AD4APA-b+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4AKgAqACo- CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED
HEREWITH MOUNTS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY
REQUEST. OMISSIONS ARE DESIGNATED AS +AFsAKgAqACoAKgBd-. A COMPLETE
VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION.
+ADw-/span+AD4APA-/b+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:7.5pt'+AD4AJg-nbsp+ADsAPA-/span+AD4APA-/p+AD4-
+ADw-p style+AD0-'margin:0in+ADs-margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-sales representative at a
managerial level for JJC who will have no involvement with any
other retailers that have juice and/or smoothies as their core
business. Distributor+IBk-s sales representative will be available
12 hours a day by a toll-free 800 number pager. Response time will
be within two (2)+ACY-nbsp+ADs-hours Monday through Friday, between
8:00 a.m. and 6 p.m., and within four (4)+ACY-nbsp+ADs-hours on
weekends, after hours, and holidays. Distributor shall provide
Jamba Juice Company corporate offices restricted remote access to
Distributor computers specifically for the purpose of accessing
velocity and Inventory data regarding Store activity.
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-6.5 +ADw-u+AD4-Day
Deliveries+ADw-/u+AD4-. For Day Deliveries, there will be a
two-hour delivery window from the scheduled delivery time. No
deliveries to be made between the hours of 11:00 a.m. and 1:00
p.m., unless agreed to be store management. Should Distributor fail
to deliver within such two-hour window, or deliver less Product
than ordered to the Store, Distributor will pay Incremental Product
Costs that the Store incurs, plus +ACQ-10.00, to cover the shortage
(Incremental Product Costs will be limited to a maximum usage for a
normal 24-hour period). The Distributor+IBk-s driver will be
responsible for bringing the product into the store and placing the
cases near their respective storage areas. The driver must check in
the order with store personnel and verify invoicing accuracy. The
driver must note all discrepancies on the invoice prior to
obtaining a team member+IBk-s signature. +ADw-/span+AD4APA-/p+AD4-
+ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-The parties may by mutual written
agreement, change the scheduled delivery windows from time to time.
Distributor will communicate needed changes on the delivery
schedule to the Stores in writing at least one week prior to any
change. Any major changes to delivery schedules must be
communicated to JJC Manager of Supply Chain and Logistics for
review and approval at least two weeks in advance of any proposed
change. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-All +IBw-day drop+IB0- deliveries,
in which the driver has missed their delivery window, will be
subject to the requirements of a +IBw-key drop+IB0- delivery. The
driver will be responsible for putting the product on the shelves.
We anticipate that stores routinely have product rotated and
prepared for day deliveries. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-6.6 +ADw-u+AD4-Key Drop
Deliveries+ADw-/u+AD4-. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:4.5pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:48.95pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-(a) +ADw-u+AD4-Delivery
Procedures+ADw-/u+AD4-. For Stores participating in Key Drop
Deliveries, Distributor+IBk-s driver will be responsible for
delivering all freezer and chilled Products into the respective
walk-ins via dolly, and shall stock Products on the shelves. All
dry Products are to be placed together in the storage areas located
in the back of each Store. Store management is responsible for
preparing walk-in units for deliveries by moving all existing
merchandise to the front of the walk-ins. When space is not
available or Product has not been properly rotated prior to the
delivery, Distributor+IBk-s driver may place Product on the floor
of the walk-in. If Distributor+IBk-s driver is not able to make a
scheduled delivery to a Store due to the fault of a JJC employee
(i.e., locks or security codes changed without informing
Distributor in advance), JJC will pay Distributor
+AFsAKgAqACoAKgBd-, plus any applicable non-scheduled delivery
surcharge for returning to the Store to make the delivery.
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:7.5pt'+AD4AJg-nbsp+ADsAPA-/span+AD4APA-/p+AD4-
+ADw-p align+AD0-center
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt+ADs-text-align:center'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-9 +ADw-/span+AD4APA-/p+AD4-
+ADw-div class+AD0-MsoNormal align+AD0-center
style+AD0-'text-align:center'+AD4- +ADw-hr size+AD0-3
width+AD0AIg-100+ACUAIg- noshade color+AD0AIgAj-999999+ACI-
align+AD0-center+AD4- +ADw-/div+AD4- +ADw-p
style+AD0-'margin-top:0in+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:24.45pt+ADs-
margin-bottom:.0001pt'+AD4APA-b+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4AKgAqACo- CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED
HEREWITH MOUNTS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY
REQUEST. OMISSIONS ARE DESIGNATED AS +AFsAKgAqACoAKgBd-. A COMPLETE
VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION.+ADw-/span+AD4APA-/b+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4- +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:7.5pt'+AD4AJg-nbsp+ADsAPA-/span+AD4APA-/p+AD4-
+ADw-p
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-All +IBw-key-drop+IB0- deliveries,
in which the driver has missed their delivery window, will continue
to be subject to the above requirements. +ADw-/span+AD4APA-/p+AD4-
+ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:48.95pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-(b) +ADw-u+AD4-Honor
System+ADw-/u+AD4-. Stores participating in Key Drop Deliveries
will receive Product on an honor system. Any invoice or delivery
discrepancies shall be brought to the attention of Distributor
within four hours after the Store opening on the following day, and
any credit will be reflected on the invoice for the following
regular delivery date. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:48.95pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-(c) +ADw-u+AD4-Access
Security+ADw-/u+AD4-. If a driver leaves a Store unlocked after a
Key Drop Delivery, leaves keys in the lock or leaves a security
system unarmed, Distributor will be charged +AFsAKgAqACoAKgBd- for
each instance. The charge will be waived if the driver is not able
to set an alarm due to a system malfunction or other cause beyond
the reasonable control of the driver. The driver shall immediately
inform Distributor+IBk-s Customer Service and the Store manager of
such problem. The +AFsAKgAqACoAKgBd- charge will not be waived if
the driver fails to timely notify such parties. If a Store
experiences theft, burglary, vandalism or other loss as a result of
a driver+IBk-s failure to secure a Store, Distributor will be
liable for any resulting losses or damages to person or property.
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-6.7 +ADw-u+AD4-Delivery
Access+ADw-/u+AD4-. JJC shall ensure that Company Stores shall
provide reasonable delivery access for Distributor+IBk-s drivers.
Reasonable delivery access shall include parking for a truck with a
minimum twenty-eight (28)+ACY-nbsp+ADs-foot trailer within one
hundred fifty (150)+ACY-nbsp+ADs-feet of the Store+IBk-s receiving
door and the ability to utilize a standard ice cream cart and/or
dolly for making deliveries. Any Store that does not provide the
aforementioned access is subject to a fair and reasonable delivery
surcharge that is to be negotiated with JJC prior to the Store
opening. Distributor shall inspect all new Store locations prior to
accepting the Store+IBk-s opening Order and notify JJC Manager of
Supply Chain and Logistics if a delivery surcharge is applicable.
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-6.8 +ADw-u+AD4-Off-Day
Delivery/Emergency Orders+ADw-/u+AD4-. Off-Day Delivery/Emergency
Orders. Stores may request an unscheduled off-day delivery. For
Stores other than Isolated Stores (i)+ACY-nbsp+ADs-all
non-scheduled Sunday deliveries will be assessed a
+AFsAKgAqACoAKgBd- surcharge and all non-scheduled deliveries made
Monday through Saturday, that can be accommodated on a regularly
scheduled route, will result in a +AFsAKgAqACoAKgBd- surcharge and
(ii)+ACY-nbsp+ADs-all emergency Orders for same day delivery must
be placed by 9:00 a.m. and will be subject to a +AFsAKgAqACoAKgBd-
surcharge. For Isolated Stores (i)+ACY-nbsp+ADs-all non-scheduled
Sunday deliveries will be assessed a +AFsAKgAqACoAKgBd- surcharge
and all non-scheduled deliveries made Monday through Saturday, that
can be accommodated on a regularly scheduled route, will result in
a +AFsAKgAqACoAKgBd- surcharge and (ii)+ACY-nbsp+ADs-all emergency
Orders for same day delivery must be placed by 9:00 a.m. and will
be subject to a +AFsAKgAqACoAKgBd- surcharge, or applicable third
party freight costs if Distributor is unable to accommodate the
delivery on its own equipment. A DM or GM must approve any charges
exceeding +AFsAKgAqACoAKgBd-, and approval must be submitted in
writing (either via e-mail or fax). If a Distributor is able to UPS
or airfreights overnight the necessary items, the
+AFsAKgAqACoAKgBd- surcharge will be waived and the Store will only
be charged the related UPS or airfreight fees.
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:7.5pt'+AD4AJg-nbsp+ADsAPA-/span+AD4APA-/p+AD4-
+ADw-p align+AD0-center
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt+ADs-text-align:center'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-10 +ADw-/span+AD4APA-/p+AD4-
+ADw-div class+AD0-MsoNormal align+AD0-center
style+AD0-'text-align:center'+AD4- +ADw-hr size+AD0-3
width+AD0AIg-100+ACUAIg- noshade color+AD0AIgAj-999999+ACI-
align+AD0-center+AD4- +ADw-/div+AD4- +ADw-p
style+AD0-'margin-top:0in+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:24.45pt+ADs-
margin-bottom:.0001pt'+AD4APA-b+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4AKgAqACo- CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED
HEREWITH MOUNTS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY
REQUEST. OMISSIONS ARE DESIGNATED AS +AFsAKgAqACoAKgBd-. A COMPLETE
VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION.+ADw-/span+AD4APA-/b+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4- +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:7.5pt'+AD4AJg-nbsp+ADsAPA-/span+AD4APA-/p+AD4-
+ADw-p
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-6.9 +ADw-u+AD4-Resolution of
Shortages+ADw-/u+AD4-. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:4.5pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:48.95pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-(a) +ADw-u+AD4-JJC Critical
Inventory-Shortages Caused by Distributor+ADw-/u+AD4-. Shortages of
JJC Critical Inventory caused by Distributor will be handled in the
following manner. If a Store is not able to wait for the next
scheduled delivery, shortages will be remedied by Distributor and
resolved at Distributor+IBk-s sole cost as quickly as possible but
within a maximum of six (6)+ACY-nbsp+ADs-hours, except for Isolated
Stores where the maximum will be twenty four
(24)+ACY-nbsp+ADs-hours for such Stores. +IBw-Extreme Remote
Locations+IB0- will be remedied within a maximum of forty-eight
(48)+ACY-nbsp+ADs-hours. Should Distributor fail to deliver JJC
Critical Inventory within a 24-hour period, unless otherwise noted,
it may be held financially responsible for lost sales (documented
via Store historical sales records) for any lost sales that Store
may incur. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:48.95pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-(b) +ADw-u+AD4-All Other
Shortages+ADw-/u+AD4-. All other Product shortages will be resolved
within 24 hours at the cost of the party responsible for the
shortage. Should Distributor fail to meet this commitment,
Distributor shall reimburse Incremental Product Costs, plus
+AFsAKgAqACoAKgBd-, that the Store incurs to cover the shortage.
The Incremental Product Cost will be limited to a maximum usage of
a normal 24-hour period. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:48.95pt'+AD4-+ADw-span
style+AD0-'font-size:10.0pt'+AD4-(c) +ADw-u+AD4-Expedited
Orders+ADw-/u+AD4-. If the Distributor has run out of product at
the Distribution facility due to poor inventory management,
inadequate safety stocks, etc. it is Jamba+IBk-s expectation that
product will be Expedited (air freight, etc.) to ensure no
interruption of service, at the Distributor+IBk-s expense.
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-The Distributor will expedite
critical items when it is not an error on the part of the
Distributor. Jamba will support the Distributor in identifying who
the responsible party shall be for costs surrounding redelivery,
deliveries may be done by a third party carrier at which time the
responsible party will be billed by the Distributor once the third
party carrier invoices the Distributor. +ADw-/span+AD4APA-/p+AD4-
+ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-6.10 +ADw-u+AD4-New
Stores+ADw-/u+AD4-. JJC agrees to inform Distributor in writing at
least thirty (30)+ACY-nbsp+ADs-days in advance of each new Store
opening within the Distribution Territory. New Stores will place
their opening Orders with Distributor at least ten
(10)+ACY-nbsp+ADs-days prior to the requested delivery date and
Distributor will confirm the opening Order delivery date three
(3)+ACY-nbsp+ADs-days prior to the delivery. Any change by the
Store to the opening Order delivery date once the Order has been
placed with Distributor must be made at least two
(2)+ACY-nbsp+ADs-days prior to the opening Order delivery date or
the Store shall be subject to a one-time special handling charge of
+AFsAKgAqACoAKgBd-. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:13.5pt'+AD4AJg-nbsp+ADsAPA-o:p+AD4APA-/o:p+AD4APA-/span+AD4APA-/p+AD4-
+ADw-table class+AD0-MsoNormalTable border+AD0-0 cellspacing+AD0-0
cellpadding+AD0-0 width+AD0AIg-100+ACUAIg-
style+AD0-'width:100.0+ACUAOw-border-collapse:collapse+ADs-mso-padding-alt:0in
0in 0in 0in'+AD4- +ADw-tr
style+AD0-'mso-yfti-irow:0+ADs-mso-yfti-firstrow:yes+ADs-mso-yfti-lastrow:yes'+AD4-
+ADw-td width+AD0AIg-4+ACUAIg- valign+AD0-top
style+AD0-'width:4.0+ACUAOw-padding:0in 0in 0in 0in'+AD4- +ADw-p
class+AD0-MsoNormal+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-7.+ADw-/span+AD4APA-/p+AD4-
+ADw-/td+AD4- +ADw-td valign+AD0-top style+AD0-'padding:0in 0in 0in
0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-u+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-SERVICE
LEVEL+ADw-/span+AD4APA-/u+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4- +ADw-/span+AD4APA-/p+AD4-
+ADw-/td+AD4- +ADw-/tr+AD4- +ADw-/table+AD4- +ADw-p
style+AD0-'margin-top:4.5pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-7.1 +ADw-u+AD4-Service
Level+ADw-/u+AD4-. Distributor shall maintain a minimum Service
Level of 99.5+ACU- on JJC Critical Inventory and 99.0+ACU- on all
other Inventory, unless due to: (i)+ACY-nbsp+ADs-a negligent or
wrongful act or omission on the part of JJC, or
(ii)+ACY-nbsp+ADs-mechanical failure beyond the reasonable control
of Distributor or (iii)+ACY-nbsp+ADs-unusual and unexpected traffic
conditions (e.g., +IBw-sig alert+IB0- conditions)
(iv)+ACY-nbsp+ADs-failure on behalf of Jamba Juice vendors to
deliver based upon specific delivery dates.
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:7.5pt'+AD4AJg-nbsp+ADsAPA-/span+AD4APA-/p+AD4-
+ADw-p align+AD0-center
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt+ADs-text-align:center'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-11 +ADw-/span+AD4APA-/p+AD4-
+ADw-div class+AD0-MsoNormal align+AD0-center
style+AD0-'text-align:center'+AD4- +ADw-hr size+AD0-3
width+AD0AIg-100+ACUAIg- noshade color+AD0AIgAj-999999+ACI-
align+AD0-center+AD4- +ADw-/div+AD4- +ADw-p
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-7.2 +ADw-u+AD4-Delivery
Performance Standard+ADw-/u+AD4-. Distributor shall maintain a
Delivery Performance Standard of 98.5+ACU- for On-time
deliveries+ADs- 98.5+ACU- for Deliveries without Complaint+ADs-
80+ACU- Perfect Order Rate+ADs- 0.5+ACU- aggregate Inventory
Accuracy per item. Failure to meet the Delivery Performance
Standards will be evidenced by a copy of the invoice relating to
the delayed delivery, with a brief explanation of why delivery was
late, signed, time noted, and dated by the Store Manager.
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-7.3 +ADw-u+AD4-Performance
Review+ADw-/u+AD4-. Distributor and JJC shall review
Distributor+IBk-s actual performance against the Service Level and
the Delivery Performance Standard on a quarterly basis. Failure by
Distributor to meet the Service Level and/or the Delivery
Performance Standard for two (2)+ACY-nbsp+ADs-consecutive quarters
shall constitute an incurable Default and will result in
(i)+ACY-nbsp+ADs-JJC+IBk-s right to cancel this Agreement without
penalty to JJC pursuant to Section+ACY-nbsp+ADs-24 and 25 hereof,
and (ii)+ACY-nbsp+ADs-at JJC+IBk-s option, transfer of the
Inventory to JJC+IBk-s designated agent at Distributor+IBk-s Landed
Cost without mark-up following thirty (30)+ACY-nbsp+ADs-days+IBk-
notice to Distributor. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-7.4 +ADw-u+AD4-Service
Contacts+ADw-/u+AD4-. The Distributor will offer a toll-free number
for placing orders and customer service issues. The Distributor
agrees to provide a customer service representative for the JJC
account. The Distributor will provide JJC store management with a
list of contact telephone numbers to reach someone after hours or
for emergencies. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-7.5 +ADw-u+AD4-No
substitutions+ADw-/u+AD4-. will not be permitted without the prior
approval of JJC. The purchase price for any substituted items,
provided the substitution is the result of an error by Distributor,
shall be based upon the lower of (i)+ACY-nbsp+ADs-the Landed Cost
of the substituted item, or (ii)+ACY-nbsp+ADs-the Landed Cost of
the original item ordered. If the substitution is the result of a
negligent or wrongful act or omission on the part of JJC or other
causes beyond the reasonable control of Distributor, then the
purchase price shall be Distributor+IBk-s Landed Cost plus the
applicable mark-up as provided in Section+ACY-nbsp+ADs-4.
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:13.5pt'+AD4AJg-nbsp+ADsAPA-o:p+AD4APA-/o:p+AD4APA-/span+AD4APA-/p+AD4-
+ADw-table class+AD0-MsoNormalTable border+AD0-0 cellspacing+AD0-0
cellpadding+AD0-0 width+AD0AIg-100+ACUAIg-
style+AD0-'width:100.0+ACUAOw-border-collapse:collapse+ADs-mso-padding-alt:0in
0in 0in 0in'+AD4- +ADw-tr
style+AD0-'mso-yfti-irow:0+ADs-mso-yfti-firstrow:yes+ADs-mso-yfti-lastrow:yes'+AD4-
+ADw-td width+AD0AIg-4+ACUAIg- valign+AD0-top
style+AD0-'width:4.0+ACUAOw-padding:0in 0in 0in 0in'+AD4- +ADw-p
class+AD0-MsoNormal+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-8.+ADw-/span+AD4APA-/p+AD4-
+ADw-/td+AD4- +ADw-td valign+AD0-top style+AD0-'padding:0in 0in 0in
0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-u+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-CONFIDENTIALITY+ADw-/span+AD4APA-/u+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4- +ADw-/span+AD4APA-/p+AD4-
+ADw-/td+AD4- +ADw-/tr+AD4- +ADw-/table+AD4- +ADw-p
style+AD0-'margin-top:4.5pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-Distributor recognizes that it may
require or be provided with Confidential Information (as
hereinafter defined) of JJC in the course of performing its
obligations hereunder, and acknowledges that such Confidential
Information is unique in nature and of great proprietary value to
JJC. Accordingly, in consideration of the Distributor+IBk-s receipt
of such Confidential Information, Distributor agrees that it shall
not, at any time, for as long as any Confidential Information shall
remain confidential or otherwise remain wholly or partially
protectable, directly or indirectly, use or disclose any such
Confidential Information for any purposes other than strictly for
the purposes described in this Agreement. Distributor shall take
all measures necessary, including limiting disclosure to those of
its employees who need to know Confidential Information in order to
perform their duties, to safeguard such Confidential Information in
order to prevent it from falling into the public domain or into the
possession of persons other than those persons authorized to have
any such information, and will not remove any copyright notice,
trademark notice or other proprietary legend set forth on or
contained within any of the Confidential Information. Distributor
shall return all Confidential Information of JJC
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:7.5pt'+AD4AJg-nbsp+ADsAPA-/span+AD4APA-/p+AD4-
+ADw-p align+AD0-center
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt+ADs-text-align:center'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-12 +ADw-/span+AD4APA-/p+AD4-
+ADw-div class+AD0-MsoNormal align+AD0-center
style+AD0-'text-align:center'+AD4- +ADw-hr size+AD0-3
width+AD0AIg-100+ACUAIg- noshade color+AD0AIgAj-999999+ACI-
align+AD0-center+AD4- +ADw-/div+AD4- +ADw-p
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-immediately upon the request JJC.
For purposes of this Agreement, +IBw-Confidential Information+IB0-
shall mean the following, whether in written, oral, electronic, or
other form: any and all trade secrets, technology, knowledge,
designs, concepts, ideas, information, formulas, patterns,
compilations, programs, devices, methods, techniques or processes
that derive independent economic value, actual or potential, from
not being generally known to the public or to other persons who can
obtain economic value from their disclosure or use, including, but
not limited to, any study, plan, report or data pertaining to JJC,
any information about JJC+IBk-s products, methods of doing
business, profit or sales, information about markets, information
about customers, and all other matters concerning JJC+IBk-s
business methods, and information that Distributor develops,
assists in developing, or discovers as a result of its relationship
with JJC. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-The obligations set forth in the
immediately preceding paragraph shall not apply to Confidential
Information to the extent that Distributor can demonstrate that
such Confidential Information: (i)+ACY-nbsp+ADs-has been in
Distributor+IBk-s possession prior to disclosure to it by JJC+ADs-
(ii)+ACY-nbsp+ADs-has been approved for release by written
authorization of JJC+ADs- (iii)+ACY-nbsp+ADs-is or becomes part of
information in the public domain through no fault of the
Distributor+ADs- or (iv)+ACY-nbsp+ADs-properly comes into the
possession of Distributor from a third party not under any
obligation to maintain the confidentiality of such Confidential
Information. In addition, Distributor may disclose Confidential
Information pursuant to a judicial or other government order, in
which case the Distributor agrees to notify JJC prior to making any
disclosure so that JJC may seek other legal remedies to maintain
the confidentiality of such Confidential Information and to comply
with any protective orders obtained by the JJC with respect to such
disclosure. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-Distributor shall ensure that all
its employees and sub-contractors pursuant to this Agreement (if
any) who have access to any Confidential Information shall be made
aware of and subject to these obligations.
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:13.5pt'+AD4AJg-nbsp+ADsAPA-o:p+AD4APA-/o:p+AD4APA-/span+AD4APA-/p+AD4-
+ADw-table class+AD0-MsoNormalTable border+AD0-0 cellspacing+AD0-0
cellpadding+AD0-0 width+AD0AIg-100+ACUAIg-
style+AD0-'width:100.0+ACUAOw-border-collapse:collapse+ADs-mso-padding-alt:0in
0in 0in 0in'+AD4- +ADw-tr
style+AD0-'mso-yfti-irow:0+ADs-mso-yfti-firstrow:yes+ADs-mso-yfti-lastrow:yes'+AD4-
+ADw-td width+AD0AIg-4+ACUAIg- valign+AD0-top
style+AD0-'width:4.0+ACUAOw-padding:0in 0in 0in 0in'+AD4- +ADw-p
class+AD0-MsoNormal+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-9.+ADw-/span+AD4APA-/p+AD4-
+ADw-/td+AD4- +ADw-td valign+AD0-top style+AD0-'padding:0in 0in 0in
0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-u+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-RESTRICTIVE
COVENANTS+ADw-/span+AD4APA-/u+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4- +ADw-/span+AD4APA-/p+AD4-
+ADw-/td+AD4- +ADw-/tr+AD4- +ADw-/table+AD4- +ADw-p
style+AD0-'margin-top:4.5pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-9.1 +ADw-u+AD4-Limited Exclusive
Dealings+ADw-/u+AD4-. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:4.5pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:48.95pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-(a) +ADw-u+AD4-Certain
Acknowledgments by Distributor+ADw-/u+AD4-. Distributor recognizes
and acknowledges that (i)+ACY-nbsp+ADs-JJC considers that various
information regarding its supply chain and distribution system is
confidential and proprietary information of JJC, including, without
limitation, information regarding procedures, techniques,
methodologies, vendors, pricing, products, ingredients, packaging,
delivery frequency and related know-how, (ii)+ACY-nbsp+ADs-during
the course of Distributor+IBk-s engagement, JJC will either
disclose certain of this confidential and proprietary information
to Distributor, Distributor will observe or have access to such
information and/or JJC will devote significant resources in
educating Distributor about such confidential and proprietary
information as such information will, by its very nature, need to
be used by Distributor to provide its services hereunder, all of
which Distributor has agreed to maintain in confidence under
Section+ACY-nbsp+ADs-8, (iii)+ACY-nbsp+ADs-such confidential and
proprietary information represents a competitive advantage of JJC
vis-+AOA--vis its competitors, and (iv)+ACY-nbsp+ADs-if such
confidential and proprietary information provided to Distributor
hereunder were, directly or indirectly, disclosed to or used by
Distributor for the benefit of a competitor, that JJC+IBk-s
business would be adversely affected. Distributor further
acknowledges that JJC+IBk-s business is operated on a national
scope, and that it intends to rapidly expand into additional
markets within the United States and internationally, and that,
accordingly, its interests in protecting its confidential and
proprietary rights are not limited to the markets it presently
serves. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:7.5pt'+AD4AJg-nbsp+ADsAPA-/span+AD4APA-/p+AD4-
+ADw-p align+AD0-center
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt+ADs-text-align:center'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-13 +ADw-/span+AD4APA-/p+AD4-
+ADw-div class+AD0-MsoNormal align+AD0-center
style+AD0-'text-align:center'+AD4- +ADw-hr size+AD0-3
width+AD0AIg-100+ACUAIg- noshade color+AD0AIgAj-999999+ACI-
align+AD0-center+AD4- +ADw-/div+AD4- +ADw-p
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt+ADs-text-indent:48.95pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-(b) +ADw-u+AD4-Representations and
Covenants with Respect to Exclusive Dealings+ADw-/u+AD4-. Based on
the acknowledgements set forth above, and in order to induce JJC to
enter into this Agreement, Distributor: (i)+ACY-nbsp+ADs-represents
and warrants to JJC that, except as disclosed on
Exhibit+ACY-nbsp+ADs-A hereto, as of the date of this Agreement
Distributor does not provide, directly or indirectly (e.g., through
an affiliate or otherwise) any distribution services in any
geographic area to companies (each, a +IBw-Direct JJC
Competitor+IB0-) operating multiple-unit restaurants (whether
company owned, licensed and/or franchised) consisting of more than
ten units and whose sales from its fresh juice and/or blended
smoothies are in excess of 10+ACU- of its overall annual sales
(each such company disclosed on Exhibit A being referred to as a
+IBw-Permitted Exception+IB0-), and (ii)+ACY-nbsp+ADs-agrees that
this Agreement shall be an exclusive dealings agreement in the
quick service restaurant industry segment occupied by JJC, insofar
that, during the term of this Agreement, Distributor will not,
directly or indirectly, provide any distribution services to Direct
JJC Competitors in the United States, other than to the Permitted
Exceptions and only to the extent allowed under this Section. If
Distributor has disclosed any Permitted Exceptions, Distributor
shall not be in violation of this Section if it provides
distribution services to the Permitted Exceptions, provided,
however, that (i)+ACY-nbsp+ADs-Distributor shall not renew or
exercise any option to renew any agreement (written or oral) with
the Permitted Exception beyond its current stated term,
(ii)+ACY-nbsp+ADs-in the case of any agreement (written or oral)
with a Permitted Exception that does not have a stated term,
Distributor will discontinue providing services under the agreement
within 16 months from the date hereof, and
(iii)+ACY-nbsp+ADs-Distributor shall not amend, modify or waive any
provision thereof that would have the effect of extending the term,
expand the scope (geographic, or otherwise) of the agreement, or
which would otherwise have the effect of circumventing the
provisions of this Section. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-9.2 +ADw-u+AD4-No
Restrictions+ADw-/u+AD4-. Distributor shall not, during the Term,
enter into an agreement with, or negotiate with, any other company,
firm, or entity with regard to a business relationship that would
prohibit or adversely affect Distributor+IBk-s ability to fully
perform its obligations hereunder during the Term or upon a renewal
of this Agreement. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:13.5pt'+AD4AJg-nbsp+ADsAPA-o:p+AD4APA-/o:p+AD4APA-/span+AD4APA-/p+AD4-
+ADw-table class+AD0-MsoNormalTable border+AD0-0 cellspacing+AD0-0
cellpadding+AD0-0 width+AD0AIg-100+ACUAIg-
style+AD0-'width:100.0+ACUAOw-border-collapse:collapse+ADs-mso-padding-alt:0in
0in 0in 0in'+AD4- +ADw-tr
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style+AD0-'width:4.0+ACUAOw-padding:0in 0in 0in 0in'+AD4- +ADw-p
class+AD0-MsoNormal+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-10.+ADw-/span+AD4APA-/p+AD4-
+ADw-/td+AD4- +ADw-td valign+AD0-top style+AD0-'padding:0in 0in 0in
0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-u+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-INVENTORY+ADw-/span+AD4APA-/u+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4- +ADw-/span+AD4APA-/p+AD4-
+ADw-/td+AD4- +ADw-/tr+AD4- +ADw-/table+AD4- +ADw-p
style+AD0-'margin-top:4.5pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-10.1 +ADw-u+AD4-Inventory
Levels+ADw-/u+AD4-. Distributor will allow Inventory levels up to
thirty (30)+ACY-nbsp+ADs-days of average usage on-hand and issue
purchase orders as needed. Distributor agrees to allow seven
(7)+ACY-nbsp+ADs-weeks inventory in FOB Dallas and
(6)+ACY-nbsp+ADs-weeks inventory in FOB Denver in order to
facilitate FTL pricing. In the event that JJC+IBk-s growth plans
fall behind after the first year in the Denver market, JJC and
Distributor will review and identify selected items that may need
to be ordered in LTL. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-JJC agrees to inform Distributor
at least four (4)+ACY-nbsp+ADs-weeks prior to the implementation of
any new Products, Products, which will be discontinued, and
Products, which are to be featured in a promotion that would affect
Distributor purchasing activity. JJC agrees to assist Distributor
in determining purchasing levels by providing projections of
JJC+IBk-s needs for new Inventory, including promotion projections.
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt'+AD4APA-span
style+AD0-'font-size:7.5pt'+AD4AJg-nbsp+ADsAPA-/span+AD4APA-/p+AD4-
+ADw-p align+AD0-center
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt+ADs-text-align:center'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-14 +ADw-/span+AD4APA-/p+AD4-
+ADw-div class+AD0-MsoNormal align+AD0-center
style+AD0-'text-align:center'+AD4- +ADw-hr size+AD0-3
width+AD0AIg-100+ACUAIg- noshade color+AD0AIgAj-999999+ACI-
align+AD0-center+AD4- +ADw-/div+AD4- +ADw-p
style+AD0-'margin:0in+ADs-margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-JJC recognizes that it is
Distributor+IBk-s goal to have inventory turns occur every 15 days
in California and 45 days in all other Distribution Centers over
the next 3 years. +ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:24.5pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-10.2 +ADw-u+AD4-Terms and
Conditions Applicable to Inventory+ADw-/u+AD4-. All Inventories
will be subject to the following terms and conditions:
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:4.5pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:48.95pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-(a) +ADw-u+AD4-JJC Proprietary
Inventory+ADw-/u+AD4-. JJC will complete and submit to Distributor
a JJC Proprietary Inventory request form prior to introduction of
new Proprietary Inventory. JJC will use its commercially reasonable
efforts to require that vendors providing JJC Proprietary Inventory
will maintain adequate floor stock inventory to satisfy JJC+IBk-s
usage requirements. JJC Proprietary Inventory held by Distributor
over sixty (60)+ACY-nbsp+ADs-days will be subject to a warehousing
fee of one percent (1+ACU-)+ACY-nbsp+ADs-to be added to the Landed
Cost of such Inventory for each thirty (30)+ACY-nbsp+ADs-day period
that the Inventory is stored beyond sixty (60)+ACY-nbsp+ADs-days.
For purposes of calculating the warehousing fee, Inventory is
assumed to be accounted for by the FIFO method.
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:48.95pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-(b)
+ADw-u+AD4-Vendors+ADw-/u+AD4-. JJC will use its commercially
reasonable efforts to (i)+ACY-nbsp+ADs-cause its vendors to
complete a Distributor vendor packet as specified by Distributor,
if requested by Distributor and (ii)+ACY-nbsp+ADs-ensure that the
Product specifications set forth in the vendor packet are provided
to Distributor on all requested items. JJC agrees to negotiate in
good faith with all private label JJC vendors to have the UPC codes
printed on all cases for JJC private label items,
(iii)+ACY-nbsp+ADs-JJC will require that all specified vendors
complete all necessary paperwork required by the Distributor.
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:48.95pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-(c) +ADw-u+AD4-Notice of New
Products+ADw-/u+AD4-. JJC will provide at least twenty-four
(24)+ACY-nbsp+ADs-hours from the time of receipt at
Distributor+IBk-s warehouse(s) of any new Product before such new
Product is required to be picked for delivery.
+ADw-/span+AD4APA-/p+AD4- +ADw-p
style+AD0-'margin-top:9.0pt+ADs-margin-right:0in+ADs-margin-bottom:0in+ADs-margin-left:0in+ADs-
margin-bottom:.0001pt+ADs-text-indent:48.95pt'+AD4APA-span
style+AD0-'font-size:10.0pt'+AD4-(d) +ADw-u+AD4-Risk of
Loss+ADw-/u+AD4-. All Inventory held by Distributor is the
responsibility of Distributor while in Distributor+IBk-s
possession. Distributor shall bear the risk of loss and shall be
financially responsible for any lost, damaged, or stolen Products
prior to delivery to Stores. +ADw-/span+AD4APA-/p+AD4- +A
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