Jamba Juice 2008 Annual Report Download - page 150

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*** 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 [****]. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION.
The Distributor is responsible for reviewing the information for accuracy and reporting any discrepancies within three days of receipt. Distributor agrees
to sell all Products as calculated in the “Directed” pricing model, using Distributor’s Landed Cost plus “standard mark-up” schedule. All pricing for that
month shall remain fixed unless prior authorization is granted by Jamba Juice.
4.5 General Inventory pricing. Distributor is responsible for providing updates on or before the 15 th of the month prior to taking affect.
4.6 Unstable Pricing. In the event of unstable pricing due to the enactment of “act of god clauses”; JJC authorized “spot loads” and or compromised
container loads; pricing will be adjusted on an “as need basis.” JJC and Distributor will work together to determine fair and equitable pricing.
4.7 Non-Traditional Franchisee Pricing. Due to the administrative limitations of some of Jamba’s Non-Traditional Franchisee’s, the distributor may be
required to maintain a separate pricing model for such locations.
(i) “Lag Pricing” is utilized where 30 days notification of pricing changes is required prior to the effective date. In this case, the Franchisee’s price
is based on the previous month’s actual price.
(ii) “No Surcharges or Penalties” is utilized where a Franchisee must have all expenses rolled into the final product cost. The Distributor will be
compensated for this requirement by negotiating a separate Fee per Case mark-up structure.
4.8 Price Discrepancies . Jamba Juice periodically audits invoice pricing from the Distributor and compares actual prices to authorized price. Jamba will
submit a summary of any known discrepancies to the distributor for review. The Distributor will have 3 business days to review the report and arrange for
credit or provide information to refute the claim.
4.9 Adjustments and Discounts .
(a) Minimum Order Surcharge. Order’s not meeting a minimum of [****] cases will be assessed a surcharge of $[****] per case for every case
short of the minimum order.
(b) Late Order Fee. Distributors cut off time for Order Placement is Noon on the stores designated order day. A late fee of $[****] shall be added
to Orders that are received after the deadline, unless Distributor caused the delay.
6