Service Allowance. Subject to the terms and conditions of Section 6.16 hereof, McLane agrees to pay Mapco the amount of [***] (the "Service Allowance") (i) within ten (10) business days after the Effective Date of this Agreement, and (ii) provided this Agreement has not been terminated and such store has not been sold, closed or otherwise ceased operation, within ten (10) business days after each anniversary date of this Agreement. The Service Allowance shall grant to McLane the right to be the exclusive wholesaler for the sale and delivery of the Products specified in Section 1.3 and shall be amortized over the twelve-month period immediately suceeding its payment applying the straight-line method of amortization in accordance with generally accepted accounting principles. In the event that Mapco or any affiliate of Mapco should build, purchase or acquire any new store(s) during the term of this Agreement, Mapco shall notify McLane of such built, purchased or acquired stores and McLane shall pay to Mapco [***] multiplied by the number of months remaining until the next anniversary date of this Agreement after the opening, purchase or acquisition of such store by Mapco or any affiliate of Mapco (except in the case of a store subject to a conflicting agreement with a third party as provided in Section 1.1 of this Agreement, in which case such payment shall be due only with respect to months during which such store subject to this Agreement). Such amount shall be paid simultaneously with the payment of the Service Allowance payment due on the anniversary date of this Agreement immediately following such opening, purchase, or acquisition (or, if sooner, upon the expiration of this Agreement). In the event Mapco or any affiliate of Mapco should sell, close or otherwise cease operation of any stores subject to this Agreement, Mapco shall promptly notify McLane of such sales, closures, or cessation of operation. For each such store which is sold, closed or has ceased operation, Mapco shall refund to McLane on the anniversary date of this Agreement immediately succeeding such sale, closure or cessation of operation, [***] multiplied by the number of months from the date of such sale, closure or cessation of operation through such anniversary date (or, if sooner, upon the expiration of this Agreement).
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Sources: Distribution Service Agreement, Distribution Service Agreement (Delek US Holdings, Inc.)
Service Allowance. Subject to (a) Within 10 days after the terms and conditions of Section 6.16 hereofSixth Amendment Effective Date, McLane agrees shall pay to pay Mapco the Company an amount of $[***] $(the "Service Allowance"[***]) (i) within ten (10) business days after the Effective Date of this Agreementper Store per year, and (ii) provided this Agreement has not been terminated and such store has not been soldfor 5 years, closed or otherwise ceased operation, within ten (10) business days after each anniversary date of this Agreementfor those 55 “Cowboys” Stores acquired by Company from D&D Oil Co. Inc.). The Service Allowance shall grant to McLane the right to be the exclusive wholesaler for the sale and delivery of the Products specified in Section 1.3 and Such amount shall be amortized over the twelve60-month period immediately suceeding its payment applying following the Sixth Amendment Effective Date using the straight-line method of amortization amortization.
(b) As to all other Stores, (i) within 10 days following the Sixth Amendment Effective Date, McLane shall pay to Company an amount of $[***] per Store, and on 7/10/05, McLane shall pay $[***] to the Company, and (ii) on October 16, 2005 and each anniversary thereof, McLane shall pay to Company an amount of $[***] per store (such amount to be equitably reduced based on prior prepayments by McLane to the Company), with any such amounts prorated for any partial year then remaining in accordance with generally accepted accounting principles. In the event that Mapco or any affiliate of Mapco should build, purchase or acquire any new store(s) during the term of this Agreement. All amounts paid under this Section 3.6(b) shall be amortized over the 12-month period immediately following the date paid, Mapco shall notify McLane using the straight-line method of such built, purchased or acquired stores and McLane shall pay to Mapco amortization.” [***] multiplied by Confidential treatment requested pursuant to a request for confidential treatment filed with the number of months remaining until Securities and Exchange Commission. Omitted portions have been filed separately with the next anniversary date of Commission.
(c) As to all amounts paid and amortized under this Agreement Section 3.6, any unamortized amount relating to a store Company sells, closes or otherwise ceases to operate shall be repaid to McLane within 10 days after the opening, purchase or acquisition end of such store by Mapco or any affiliate of Mapco (except in the case of a store subject to a conflicting agreement with a third party as provided in Section 1.1 of this Agreement, McLane accounting quarter in which case such payment shall be due only with respect to months during which such store subject to this Agreement). Such amount shall be paid simultaneously with the payment of the Service Allowance payment due on the anniversary date of this Agreement immediately following such opening, purchase, or acquisition (or, if sooner, upon the expiration of this Agreement). In the event Mapco or any affiliate of Mapco should sell, close or otherwise cease operation of any stores subject to this Agreement, Mapco shall promptly notify McLane of such sales, closures, or cessation of operation. For each such store which is sold, closed or has ceased operation, Mapco shall refund to McLane on the anniversary date of this Agreement immediately succeeding such sale, closure or cessation of operation, [***] multiplied by the number of months from the date of such sale, closure or cessation of operation occurs through an equitable adjustment made by McLane to any amounts that may be owing by McLane to Company at the end of such anniversary date (orMcLane accounting quarter. If the unamortized amount to be repaid to McLane at the end of such accounting quarter is greater than the amount that is owed by McLane to Company, if sooner, upon the expiration remaining adjustment will be made at the end of this Agreement)subsequent McLane accounting quarters until the full unamortized amount is repaid by Company to McLane.”
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