Operating Supermarkets. During each exercised Annual Extension Term, New Albertson’s will pay a weekly fixed store fee and a weekly variable store fee as follows:
(a) The weekly fixed store fee will be equal to one-half of the Annual Per Store Fee multiplied by the number of operating supermarkets at the beginning of the Annual Extension Term divided by 52. The weekly fixed store fee will not be subject to reduction for the closure of a supermarket during the applicable Annual Extension Term.
(b) The weekly variable store fee (which is based on the number of operating supermarkets at the beginning of a given week) will be calculated by dividing one-half of the Annual Per Store Fee by the number of operating supermarkets at the beginning of a given week, and further dividing that sum by 52. The weekly variable store fee will be subject to reduction for the closure of supermarkets as provided in Section I.E below.
(c) As an example only, during the first Annual Extension Term, if the Annual Per Store Fee has been established after the first 90 days at $3,562 per week per store, and if on the first day of the Annual Extension Term the number of operating supermarkets is 425, the weekly fixed store fee would be $756,925 ($1,781 x 425). Assuming 425 supermarkets, the weekly fixed store fee for all supermarkets would be $756,925 ($1,781 x 25) for a weekly payment total (fixed and variable) of $1,513,850. The weekly variable store fee could be reduced as a result of supermarket closures. For example, if five (5) stores closed in a given week, the weekly variable store fee would be $748,020 ($1,81 x 420) for the next week, but the weekly fixed store fee would continue at $756,925 ($1,781 x 425) for a weekly total (fixed and variable) of $1,504,945.
Operating Supermarkets. Albertson’s will pay a weekly fixed store fee and a weekly variable store fee based on an Annual Per Store Fee (defined below) for operating grocery stores receiving Services under this Services Agreement. Immediately following the first 90 days after the Effective Date, the Annual Per Store Fee will be calculated as follows:
(a) $114,000,000 minus the cost of Services transferred from SVU within the first 90 days of the Initial Term (as described in I.A above), minus the sum of $1,000,000 multiplied by the number of operating distribution centers. The result shall then be divided by the number of operating supermarkets receiving Services on day 91(“Annual Per Store Fee”). The parties will execute a letter agreement as soon as possible after the first 90 days of the Initial Term to confirm the Annual Per Store Fee. Once established, the Annual Per Store Fee will be the base fee used to calculate fixed and variable fees during months 13 through 30 of the Initial Term and during any exercised Extension Terms.
(b) During months 13 through 30 of the Initial Term, the weekly fixed store fee will be equal to one-half of the Annual Per Store Fee divided by 52. This weekly fixed store fee will not be subject to reduction for the closure of a supermarket during the Initial Term.
(c) During months 13 through 30 of the Initial Term, the weekly variable store fee (which is based on the number of operating supermarkets at the beginning of a given week) will be calculated by dividing one-half of the Annual Per Store Fee by 52. The weekly variable store fee will be subject to reduction for the closure of supermarkets as provided in Section I.F below
