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Stockholders' Agreement

 

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Title:

Stockholders' Agreement

Entities:

Foodarama Supermarkets, Inc.

Date:

2006

Size:

Preview shows 4KB of 26KB total

Price:

$36

ID:

#1236411

 

 

► Corporate ► Holder ► Stockholder Agreements
► Retail ► Grocery

 

 

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                             STOCKHOLDERS' AGREEMENT


AGREEMENT, dated as of August 20, 1987, as amended on February 20, 1992,
by and among WAKEFERN FOOD CORP., a New Jersey corporation with principal
offices located at York Street, Elizabeth, New Jersey 07207 ("Wakefern"), and
each of the member stockholders of Wakefern listed on Schedule 1 hereto
(hereinafter individually called a "Stockholder" and collectively the
"Stockholders").

W I T N E S S E T H:

Premises:

A. Wakefern is a corporation operated on the cooperative plan and the
Stockholders are retail merchants primarily dealing in consumer products for
home use deriving mutual economic and merchandise assistance Wakefern; and

B. Each of the Stockholders of Class B or Class C Common Stock of Wakefern
and, in some instances, also of shares of Class A Common Stock of Wakefern (the
Class A, B and C Common Stock being hereinafter collectively referred to as the
"Common Stock"); and

C. Wakefern's viability is based primarily on volume generated by
aggregating the purchasing power of all of the Stockholders; and Shares and from
is the owner of


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D. The Board of Directors of Wakefern and the Stockholders believe it is
in Wakefern's and each of the Stockholder's best interest that the Stockholders
continue to purchase their supplies and inventory from Wakefern; and

E. The Board of Directors and the Stockholders of Wakefern believe it is
in Wakefern's and each of the Stockholder's best interest to undertake a major
capital expenditure program in order to increase the merchandise handling
capacity of Wakefern and to promote retail growth; and

F. To induce one or more lending institutions to provide the necessary
financing for such capital expenditure program, the Stockholders have agreed,
subject to the terms and conditions contained herein, to make certain financial
commitments to Wakefern;

NOW, THEREFORE, for and in consideration of the premises and the mutual promises
and covenants hereinafter contained, Wakefern and the Stockholders hereby agree
as follows:

1. COMMITMENT TO PARTICIPATE

1.1. Minimum Patronization Requirement. Each Stockholder, during the term
of this Agreement (the "Term"), shall purchase from Wakefern, during each
quarter of each fiscal year of Wakefern, at least 85% of such Stockholder's
purchases for each of such Stockholder's stores in each of Wakefern's product
categories listed on Schedule 2(A) hereto (the "Product Categories"), as the
same may be amended from time to time by the Board of Directors of Wakefern (the
"Products") and all programs listed on Schedule 2(B) hereto as mandated by the
Board of Directors of Wakefern, as the same may be amended from time to time by
the Board of Directors of Wakefern (the "Programs"), upon such terms and
conditions as to price and delivery as shall be established by Wakefern from
time to time. Such purchase and participation


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commitments shall be called the "minimum patronization requirement."

1.2. Binding Effect. The minimum patronization requirement shall be
binding upon all the Stockholders with respect to all supermarkets, food stores
and/or grocery stores now or hereafter operated by each such Stockholder, or by
any entity or entities with which such Stockholder is affiliated, and that are
serviced by Wakefern at site locations approved by Wakefern in the manner
provided in the By-Laws of Wakefern as the same may be amended from time to
time.

 

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