Common use of Operating Supermarkets Clause in Contracts

Operating Supermarkets. New 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) $86,000,000 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.E below

Operating Supermarkets. New 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) $86,000,000 114,000,000 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.E I.F below