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11-12-2014 Council Agenda
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11-12-2014 Council Agenda
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Exhibit H <br />General Terms and Conditions of <br />PM USA Promotions <br />1. PM USA Promotions. <br />A. General. A Store will be eligible for and may participate in only those PM USA <br />Promotions (1) that are available to such Store during a particular Promotion Period and (2) for which <br />such Store satisfies the eligibility criteria. Prior to the start of each Promotion Period, PM USA will notify <br />Retailer of the PM USA Promotions available to each Store during such Promotion Period. Retailer must <br />comply with all requirements communicated by PM USA via the Website or other Promotion Notice for <br />such PM USA Promotions. <br />B. Modification or Cancellation of PM USA Promotions. PM USA may modify or cancel <br />any PM USA Promotion at any time. <br />C. Disclosure of Competitive Promotional Activity. To verify Retailer compliance with <br />certain PM USA Promotions intended to lower the price of PM USA products relative to the price of non - <br />PM USA products, PM USA may at times require Retailer to provide AGDC accurate information <br />regarding manufacturer -funded promotional allowances or price reductions on non -PM USA products, <br />including informing AGDC of any changes to such promotional allowances or price reductions. <br />2. PM USA Product Promotions. if a Store receives PM USA Product Promotions from any <br />wholesaler, Retailer agrees that such Store will comply with the following requirements: <br />A. Original Packaging. The Store must sell each PM USA Product Promotion only as <br />originally packaged and must not break up or reconfigure any PM USA Product Promotion in any manner, <br />unless otherwise directed by PM USA in writing. <br />B. Prohibited Sales of PM USA Product Promotions. The Store may not sell or give <br />away any PM USA Product Promotion: (1) to other retail, wholesale, or commercial purchasers; (2) In any <br />transaction that Is not face-to-face to adult tobacco consumers; or (3) otherwise in violation of any of the <br />PM USA Trade Policies. <br />3. PM USA Off -Invoice Promotions. If a Store receives from any wholesaler PM USA Cigarettes <br />or other PM USA products at prices reduced by PM USA Off -Invoice Promotional Allowances, Retailer <br />agrees that such Store will reduce the selling price for each promoted PM USA product by subtracting <br />from the Non -Promoted Price an amount not less than the amount of the applicable PM USA Off -Invoice <br />Promotional Allowance and comply with all other requirements communicated by PM USA for such <br />promotion. <br />4. PM USA Retail Price Promotions and Marlboro Performance Options. <br />A. Payment Details. If a Store participates in and complies fully with the terms of a PM <br />USA Retail Price Promotion or Marlboro Performance Option, PM USA will pay Retailer any applicable <br />PM USA Promotional Allowance offered in connection with such PM USA Promotion based on such <br />Store's purchases of the promoted PM USA products, net of retums, as reported in STARS, except as <br />otherwise communicated by PM USA. Upon request, Retailer must provide to PM USA information and <br />documentation (e.g., scan data, register tapes), in a form satisfactory to PM USA, sufficient to verify each <br />Store's pricing and sales of promoted PM USA products during a designated Promotion Period. <br />B. Cap Threshold. Retailer will not earn PM USA Promotional Allowances with respect to <br />PM USA Cigarette volume exceeding 800 PM USA cartons per week per Store during any Promotion <br />Period (the "Cap Threshold"). If, however, a Store is an Uncapped Store, the Store will be eligible to earn <br />Promotional Allowances on PM USA Cigarette volume in excess of the Cap Threshold. <br />Exhibit H <br />Page 1 of 2 <br />45 <br />
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