Competition Tribunal File No: The Competition Tribunal In the matter of an Application by Safa Enterprises Inc. doing business as My Convenience Store for an order pursuant to Section 103.1 of the Competition Act, RSC 1985 c. C-34, as amended granting leave to bring an application pursuant to Section 76 of the Competition Act
BETWEEN: Safa Enterprises Inc. Applicant AND: Imperial Tobacco Company Limited . Respondent
AFFIDAVIT I, ADNAN MUSTAFA of 11957 96A Avenue, Surrey BC V3V 2AS, MAKE OATH AND SAY AS FOLLOWS:
1. I am the Manager of the Applicant and such have personal knowledge of the facts and matters hereinafter deposed to except where stated to be made on information and belief and where so stated, I verily believe them to be true .
2. I am authorized by the Applicant to make this Affidavit.
The Parties 3. The Applica t Safa Enterprises Inc. ( 11 SEI") is a corporation incorporated under the laws of British Co lumbia. It has a head office in Surrey, British Columbia and registered to carry on a small family business of convenience store in Vancouver, British Columbia. Exhibit A {SE/ profile from BC Registry Services)
4. The Defendant Imperial Tobacco Company Limited ( 11 ITCO") is a corporation incorporated under the laws of Canada from my knowledge. It has a head office in Montreal, Quebec and sole manufacturer and distributor of wide variety of tobacco products. Their major brands are Avanti, du Maurier, JPS, Marlboro, Matinee, Medallion, Pall Mall, Peter Jackson, Player's, John Player Standard, Viceroy, Vogue and more. Exhibit B {ffCO Company profile from Industry Canada}
History 5. In June 2011, the Defendant ITCO offered Preferred Pricing Program (the 11 PPP") to Applicant's competitor New Hasty Market ("NHM") located at 440 West Hastings St. Vancouver.
6. In Preferred Pricing Program, ITCO is selling its products to the NHM up to $5.60 before HST per ca1ton (per 10 packs) cheaper than Applicant's cost from ITCO.
7. Typically o r margin on one cigarette pack is 50-60 cents that makes $5.00 to $6.00 per carton.
8. It means If Applicant sells ITCO products at cost; Applicant's competitor NHM will still be making at least $5.60 profit before HST on its ITCO products.
9. During Ju e 2011 and September 2012, the Applicant kept on losing customers as the Applicant'!; competitor NHM were selling cigarettes cheaper to the customers.
10. In October 2012, Applicant's competitor dropped the prices of ITCO products below Applicant's cost from ITCO.
11. I requested ITCO Account Representative Mr. Rob Laing to visit our store in the first week of November 2012 and inquired if ITCO selling their products to Applicant's competitor at discounted prices. Mr. Laing confirmed that NHM is on PPP since June 2011.
12. I explained Mr. Laing the damage caused to the Applicant's business by ITCO's PPP offered to our neighbor NHM. I believe it was breach of trust towards the Applicant's
business bv awarding unfair advantage to the Applicant's competitor without Applicant's knowledge.
13. I inquired from Mr. Laing how does PPP work. Mr. Laing explained that the determination to be on PPP is between the relationship between the Account representative and the store. I told Mr. Laing that we were never been visited by any Account representative since we set up our account with ITCO. The last visit at our store by ITCO Account representative was when we set up our account with ITCO to collect the Retail Tobacco Authorization and to let us know about our order day.
14. Mr. Laing e)(pressed his opinion by saying, " It is unfortunate but I cannot do anything at this time. Our next review is in December at that time we might consider you for the PPP. I will come back next week and will add you on John Player Standard program. This will match l1pplicant's and the competitor NHM prices for John Player Standard . ts. I requested in t he meeting and in the email to provide us the same business opportunity. I got this meeting documented with Mr. Laing via email on November 14, 2012. Exhibit C (Email dated Nov 14, 2012 to Mr. laing documenting the meeting and concerns)
16. Mr. Laing put us on John Player Standard program after 3 weeks to match our price with our compet itor NHM.
17. I was shocked to see the price difference between our old price and the new discounted price. There was $5.17 per carton difference in the price. Then I realized how Applica nt 's competitor could offer low prices to the customers. Exhibit D {ITCO Invoice 9108276797 dated 22/11/2012 reflecting our price before adding to John Player Standard Program)
Exhibit E (l'TCO Invoice 9108323107 dated 06/12/2012 reflecting our New price after adding to John Player Standard Program)
18. I waited pat iently through the month of November and December while Applicant 's business was still suffering both due to losing customers and by reducing the price to the cost on rest of the product lines of ITCO to stay in the market.
19. I contacted aga in Mr. Laing on December 27, 2012 via email to get an update about the review. Mr. Laing did not reply then I called again Mr. La ing on January 04, 2013 and requested for t he visit . Exhibit F (Email dated Dec 27, 2012 to Mr. laing for the follow-up)
20. Mr. Laing visited our store on January 07, 2013 and informed us that Applicant has not 1 been selected for PPP. I asked Mr. Laing if Applicant's competitor is still on the discounted program PPP. Mr. Laing replied yes NHM is still getting ITCO products at discounted prices.
21. I informed Mr. Laing via email that Applicant will be taking legal action against ITCO if ITCO did not resolve the issue as it is the violation of Competition Act. Exhibit G (Email dated Jan 07, 2013 to Mr. laing)
22. Mr. Laing came back to our store on January 11, 2013 and instead of resolving the issue was threatening that ITCO has a very good legal team. I 23. Exhibit H (Email dated Jan 11, 2013 to Mr. laing) 24. I sent Mr. Laing the relevant section of Competition Act for review as I believed that this section applies to our situation:
76. (1) On application by the Commissioner or a person granted leave under section 103.1 , the Tribunal may make an order under subsection (2) if the Tribunal finds that
• (a) a person referred to in subsection (3) directly or indirectly o (i) by agreement, threat, promise or any like means, has influenced upward, or has discouraged the reduction of, the price at which the person's customer or any other person to whom the product comes for resale supplies or offers to supply or advertises a product within Canada, or o (ii) has refused to supply a product to or has otherwise discriminated against any person or class of persons engaged in business in Canada because of the low pricing policy of that other person or class of persons; and • (b) the conduct has had, is having or is likely to have an adverse effect on competition in a market.
• Marginal note:Order (2) The Tribunal may make an order prohibiting the person referred to in subsection (3) from continuing to engage in the conduct referred to in paragraph (l)(a) or requiring them to accept another person as a customer within a specified time on usual trade terms.
• Marginal note:Persons subject to order
(3) An order may be made under subsection (2) against a person who
• (a) is engaged in the business of producing or supplying a product;
Exhibit H (Email dated Jan 11, 2013 to Mr. laing) 2.5 . Mr. Thierry Schmidt the Regional Sales Manager of ITCO sent a letter dated January 17, 2013 in which Mr. Schmidt said that "It is legal to offer the PPP to some retailers and not to all" . It means in my understanding that it is legal to discriminate two businesses operating side by side offering the same product lines; buying from the same manufacturer and supplier. ExhibitlL {Mr. Schmidt letter dated Jan 17, 2013)
26. Mr. Schmidt insisted that it is legal to offer different prices to different customers and I even after explaining Applicant's situation insisting on continue to discriminate the Applicant's business in future as well .
27. I requested ITCO to provide us the copy of PPP policy so that we can better understand I the PPP. In response Mr. Schmidt sent me the factors to be considered to be eligible for PPP which are beyond my understanding in Applicant's situation. Namely: a. Retailer's volume of tobacco products relative to other stores in the area. b. The geographical location of a retailer's outlet and demographic profile of the population surrounding the retailer's location; and c. The retailer's willingness, capability and motivation to work with ITCO and to implement ITCO initiative.
Exhibit J (Mr. Schmidt letter dated Jan 25, 2013) 28. I believe that there is no difference in Applicant and its competitor NHM's ordering or I selling volume of tobacco products. If there was any difference of ordering/selling volume in past was due to the ability of Applicant's competitor ability to sell the ITCO I tobacco products at lower prices for being on PPP. 29. How could two stores side by side differ in geographical location and demographic I profile of the population? Exhibit K (Street view of NHM 440 and SE/ 450 West Hastings St. Vancouver, BC)
30. Exhibit K is a street view of Applicant's and its competitor's street view that clearly reflects the geographical location and products carried by both the businesses.
31. Applicant's business was never been visited by Account representative of ITCO during May 2011 t ill November 08, 2012 and even November 08, 2012 visit was on the request of the Applicant. How does ITCO get to know the willingness, capability and motivation to work with ITCO? And even now, when Applicant showing willingness, capability and motivation to work with ITCO, in response, Applicant is getting in response is it is unfortunate but you have to suffer further losses. What else should Applicant do so that ITCO stops i s discriminating policy?
Justificationi for Discriminating Applicant I 32. I tried to reason with Account representative Mr. Laing on his visit on November 08, [ 2012 that I can justify ITCO discriminating policy although it will still be unfair under following circumstances:
• If Applicant's competitor is located at least 1 or 2 blocks away from the Appl icant's location;
• If Applicant's competitor is a specialty smoke shop (exclusively selling tobacco products); or
• Applicant's competitor is getting a volume discount. • If ITCO is not the ONLY manufacturer of its products and just a mere wholesaler. 3. Mr. Laing confirmed that the discounted prices offered to NHM is not a volume discount r but is a par of PPP awarded by ITCO. 34. Mr. Schmidt wrote in his letter dated January 17, 2013 that the main objective of PPP is to ultimately offer lower retail prices to consumers on ITCO products. What should a retailer do who is supplied ITCO products at higher prices located besides a retailer who is supplied ITCO products at discounted prices?
Effects on SEI Business BS. In this letter dated January 25, 2013 Mr. Schmidt explained that the limited financial resources prevent ITCO from offering PPP to every eligible retailer in Canada and ITCO selects carefully from the eligible outlets.
136. As I mentioned earlier that Safa Enterprises Inc. is a small family business; Safa is my 3.5 years old daughter and we named the business on her name. My wife is the sole
shareholder/director of the business and I am managing the business. We have invested all the resources we had in order to make our living in this business. r·I f big corporation like ITCO is crying for their limited resources the Tribunal can imagine our condition as we do not have any other resources left. We have invested all our resources in this business and today we are forced to sell ITCO products at or below cost.
18. The Applicant is not a charitable institution nor Respondent ITCO is a charitable institution and we have no intention of working for ITCO for charity. The PPP offered to Applicant's competitor NHM is not only adversely affecting us financially but also affecting our health and family life.
39. The loss incurred by the Applicant is not limited only to tobacco sales, but also affecting sale of other merchandise as well. As customers buying tobacco product tend to buy lighters, gums, candies, soft drinks etc.
40. Customers have perception if a retailer charging more prices for tobacco product; He must be charging more prices for rest of the merchandise carried by the retailer as well.
41. In year 2012, Applicant purchased $82,376.75 worth of tobacco products from the Respondent; this amount will be more than $125,000.00 during current year. Applicant is having ha rd time paying lease, bills, employees' salaries and other expenses and will not be able to sustain further losses due to Respondent's discriminating policy.
2. Since February 2013, when we have informed the Respondent ITCO that we will be taking legal action against ITCO's actions, we have not been visited by any of ITCO representative to check the expiry of the tobacco products. It is the responsibility of ITCO to en!;ure that tobacco products sitting on the shelves are not expired.
43. We might have been selling expired products as we have no clue to figure out the expiry date on ITCO products as ITCO products contain certain number to identify their expiry date that can be identified only by ITCO representative.
44. According to Commissioner of Competition v. British American Tobacco (CT-1999-001} Statement of grounds states that Imperial Tobacco has 70% of the total share of manufactured cigarette market. It means the Applicant will have to sell at least 70% of its tobacco products at or below cost due to PPP offered to the Applicant's direct competition NHM to stay in the market.
/ 45. I was fighting with cancer from July 2011 to June 2012 while our business was suffering because of ITCO discriminating policy without our knowledge that resulted in loss of business and now we are incurring loss due to dropped prices of ITCO products. This
situation is not limited to financial loss but also it has adverse effect on my health. I am under too much stress I cannot sleep at night properly; I have great strains in my shoulders, severe headache at times and cannot focus on business as I am always worried about our current situation due to ITCO discriminating policy.
4/16. If Defendan ITCO continues to discriminate Applicant's business; Applicant will be out of business in near future leaving a family and employees jobless.
47. I have tried to reason with ITCO at numerous levels and occasion since November 2012 to justify their discriminated policy towards our business but no vain. I have no other option left to request tribunal to intervene and hear our plea. Our only request is to provide us the same business opportunity.
48. The conduct of ITCO of low pricing policy has had, is having and will be having an adverse effect on Applicant's business and competition in the market.
Dated at Vancouver, British Columbia, this 6th day of September, 2013. ~ ~dnan Mustafa Manager Safa Enterprises Inc. SAlRA K Notary Pub\ # 8334 _'I 28th Street 213 ' ac F v 3 • w 4G2 surrey, _5 91-8273 Tel· 604-591-5824 ax. 604 m . salra@vannotary.co
Q BC Registry Mailing Address: Location : PO Box 9431 Sin Prov Govt 2nd Floor - 940 Blanshard Street BRITISH Services Victoria BC VBW 9V3 Victoria BC COLUMBIA www.corporateonline.gov.bc.ca 250 356-8626 CERTIFIED COPY Of a Document filed with the Province of British Columbia Registrar of Companies
Notice of Articles BUSINESS CORPORATIONS ACT CAROL PREST I ·w This Notice ·olf"Articles:was ~ssued ,by the Registrar on: August 1, 2013 12:01 A~.Pacifl~ Time lncorporat10 Numb(:JtK BC0900031 , - <~ik M--''.. if.' °''~*'*'~'""' "- ~ NOTICE OF ARTICLES Name of Company: SAFA ENTERPIRISES INC.
REGISTERED CDFFICE INFORMATION Mailing Address: Delivery Address: 11 957 96AAVEENUE 11957 96A AVENUE SURREY BC V3V 2A5 SURREY BC V3V 2A5 CANADA CANADA RECORDS OFFICE INFORMATION Mailing Address: Delivery Address: I 11957 96AAVENUE 11957 96A AVENUE SURREY BC V3V 2A5 SURREY BC V3V 2A5 CANADA CANADA Saira Khan Notary Publie !of ttl8 Pr ~' ··' ' ish Columbia
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DIRECTOR INFORMATION Last Name, First Name, Middlle Name: Adnan, Raina Khan
Mailing Address: Delivery Address: 12718 97AAVENUE 12718 97A AVENUE SURREY BC V3V 2H5 SURREY BC V3V 2H5 CANADA CANADA AUTHORIZED SHARE STRUCTURE 1. 10,000 Common Shares Without Par Value Without Special Rights or Restrictions attached
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Federal Corporation Information - 3701590 - Corporations Canada - .. . https ://www.ic.gc.ca/app/scr/cc/CorporationsCanada/fdrlCrpDtls.htrn .. . l ,+I, ••• Gpvsmment Gouvernement 01 Canada d.u Cane;da Ca nad··.··· a Industry Canada Home > Corporat ions > Corporations Canada > Search for a Federal Corporation Corporations C;anada
Federal Corporation Information - 3701590 Glossary of Terms used on this page Return to Search Results
Start New Search Corporation Number 3701590
Business Number (BN )1 864627385RC0001
Governing Legislation Canada Business Corporations Act - 1999-12-29
Corporate Name IMPERIAL TOBACCO COMPANY LIMITED -IMPERIAL TOBACCO COMPJl1GNIE LIMITEE
Status Active
Registered Office Address 3711 ST. ANTOINE STREET WEST MONTREAL QC H4C 3P6 Canada
Active CBCA corporatio s are required to update this information within 15 days of any change.
Directors Minimum 1 Maximum 10 To obtain addresses of directors, contact Corporations Canada by email or fax. Directors Tamara Gitto David Ellacott Marie Polet Eric Thauvette
Annual Filings Anniversary Date (MM-DD) 12-29
Date of Last Annual Meeting 2009-02-19
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This Is Exhibit·....&...* to the r l Affidavit/Declaration of Ab!:I!?> f:.! w;,,"' ~,. , SwomJOes~red before at y, QS.Uf BC this -6.!::.. day of o l.l;).. · .Saira Khan Notary Public tor e British Columbia
9/6/2013 10: 10 AM
Federal Corporation Information - 3701590 - Corporations Canada - ... https://www.ic.gc.ca/app/scr/cc/CorporationsCanada/fdrlCrpDtls .htm ... Annual Filing Period (M M-DD) 12-29 to 02-27 Type of Corporation Non-distributing corporation with SO or fewer shareholders
Status of Annual Filings 20 13 - Not due 20 12 - Fi led 20 11 - Fil ed
Corporate History Corporate Name History 1999- 12-29 to Present IMPERIAL TOBACCO COMPANY LIMITED -1999- 12-29 to Present I MPERIAL TOBACCO COMPAGNIE LIMITEE
Certificates and Filings Certificate of Incorporation 1999- 12-29
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Print http: //ca-mg6.mail.yahoo.com/neo/launch?.rand=Opmkhvtfe288d#mail Subject: My Convenience Store From: Adnan Mustafa (adnan.must@yahoo.ca) To: rlaing@itl.ca; Saira Khan . Notary Public for the Date: Wednesday, November 14, 2012 1: 40:30 PM British Columbia Hi Rob, I would like to take this opportunity to thank you for visiting our store last week. I appreciate the valuable time you took to listen to some of our concerns, and to assess ways in which we could improve our business selling ITCL products. Being a small establishment, we are pleased to be an ITCL affiliate, and look forward to a mutually beneficial relationship as we continue to grow.
Our main concern was the special pricing program by ITCL awarded to our next door neighbor since June 2011 (New Hasty Market located at 440 West Hastings St, Vancouver BC). It was really nice seeing a sales representative from Imperial Tobacco since we set up our account with ITCL. Hope to see you more often in future.
Purpose: The reason for this email is to get our concern documented with your company so that we will not be ignored in future in case: you get promoted or decided to leave the company our concern should be there for the person who will be in charge of your responsibilities.
Summary: The reason for contacting you and requesting for the visit was to inform you the challenges faced by our small establishment due to special pricing program awarded to our neighbor. As we mentioned during your visit that our pricing for Imperial tobacco products were already one of the lowest in Vancouver. Now our neighbor has further dropped the pricing of your products to a level where we are forced to sell the same products at cost to keep our customers (to match the prices). We do not know if we will have to sell your products below cost if our neighbor further dropped the prices until your company review and put us under the same pricing umbrella as our neighbor's, as you mentioned that this review will take place sometime in December 2012. Our neighbor is able to offer these low prices to customers as he buys smokes cheaper than our cost from your company. Our neighbor is being practicing this policy of selling products at or below our cost to get us out of the business and we believe Imperial Tobacco supporting/helping him indirectly in his cause as he is our direct competition.
As we mentioned if our neighbor was 1 or 2 blocks away from our store or if he was a specialty smoke
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Print http:// ca-mg6 .mai I. yahoo .com/neo/launch? .rand=Opmkhvtfe2 88 d#ma i I shop (exclusively selling tobacco products) and the Imperial Tobacco awards him special pncmg program then we have no problem, but at the moment we are in the same business, offering the same products for sale to the customers we fmd it unfair and unjust as there is barely a door between our and his store.
As you mentioned that Imperial Tobacco revise the special pricing program twice a year to decide to award or remove a store from the program and the way a store can be put on the program is determined by the relationship between the sale representative and the store and the authority to put a store on the program lies with the sales representative. We were not been visited by any Sales rep since we setup our account with Imperial Tobacco. The sales rep at that time was came to inform us about our order day and to collect the copy of tobacco retail authorization. As a result we were unable to build any relationship with the sales rep and been ignored at least last 3 reviews to be added to the program and November 08, 2012 was day 1 for us to build this relationship.
The situation is very frustrating for us especially after knowing that there is no assurance what is going to happen after the next review by Imperial Tobacco in December. As we mentioned that the corning 10-12 weeks are the busiest weeks of the year for us and even we been placed on the program we will be heading to slowest time of the year resulting us further losing money during these busy months. This frustration restraining us to stay focused to perform our normal business activities.
Action Requested: After explaining all the circumstances including unfair advantage provided to our neighbor for last year and a half we are requesting Imperial Tobacco to take quick action to resolve the issue. We are not requesting to take our neighbor off the program and place us on the special pricing program. All we are requesting is at least provide us the same opportunity. Could you please escalate our request as we fmd ourselves in extra ordinary situation because Imperial Tobacco ignored us in last reviews and to save our small establishment from further loss?
We will highly appreciate to keep us updated with the actions taken. If you need any other information or have questions please contact us by email, phone or fax .
'Thank you, Adnan Mustafa Manager
ITCL Customer No. 1060295 Safa Enterprises Inc. dba My Convenience Store 450 West Hastings St,
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Print http: //ca-mg6.mail.yahoo.com/neo/Jaunch?.rand=Opmkhvtfe288d#mail Vancouver BC V6B lLl Phone (604) 566-9161 Fax (604) 566-9836 Email: adnan.must@yahoo.ca
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~ A. PO Box 6135, Station Centre Ville Montreal QC H3C 3S 1 JJ?. IMPERIAL TOBACCO CANADA Imperial Tobacco Company Limited ,;. Adresse.· ~e f~cturation I Billing Address Information MY CONVENIENCE STORE N° Com man de du client I Customer P .0 . N° SAFA ENTERPRISES INC. Date de commande I Order Date 450 WEST HASTINGS STREET N° de facture / Invoice N° VAN CO UV ER BC V6B 1 L 1 Date de facturation /Invoice Date N° de compte I Account N° N° Livraison I Delivery N° Date livraison estimee I Estimated Delivery Date· 23/11/2012
Poids total I Total Weight 8.712 KG . Adresst{~u~ti'estinataire'IShio.oin'OAdaress ' Nombre de colis I Number of Packages 00002 MY CONVENIENCE STORE N° de sceau I Seal N° RVAN0120507 4, RVAN01205075 SAFA ENTERPRISES INC. Termes de paiement I Payment Terms(§) Payable within 7 days by pre-authorized debit 450 WEST HASTINGS STREET VANCOUVER BC V6B 1L1 Note(§): Payment due date calculated from date of actual receipt of goods. Tel.: 6045669161 The prices appearing on this invoice could be subject to an adjustment in the event that any rebates have to be withdrawn or the final unit prices reflected herein are incorrect. An adjusted invoice will then be issued.
',·; ·. ~;.;;' ~;~' . MARQLIE ,,, CODE UPC QUANTITE Prix Unitaire ,, sur le tabac' .. 'cot{fENU I DESCRIPTION - SIZE 'BRANO. ~~~~i~/jlf?E: F QUANTITY Unit Pric{3 '.., , :i:. I'.~,'.~~::~~:· ~ ;~: ~n -~ '~ ''"'"'' ' \ Prod. Sub-Total I Prod. Sous-Total 31 Dist/Avail/Inventory Total Retailer Price Adjustments H.S.T. ( 12.00 % ) #864627~ 85RT0001 TOTAL AMOUNT NET AMOUNT .. .. This is Exhibit ;~ "to the Affidavit/Declara ;-;f ~'!\M...o" J.tlV\t P~ • Sworn/Declared be 'fore~ at <. · • 4.LLY "' BC this f::t:=_ ~ vo f • .• ~ 20..lb..· '~ ' Saira Khan -Notary PubHc for tt e rovlnceof British Columbia
TAXE PROVINCIALE DE TAB I AC I PROV I INCI AL TOBACCO TAX ' NO'. ·DE•PERMIS TOTAL TAXE TABAC MONTANTTOTAL ESCOMPTE PAIEMENT TAX UCENCE ·NO. TOTAL TOBACCO TAX TOTAL AMOUNT PAYMENT DISCOUNT I Remise .. 0005 BC 1 , 128.50 2,31 2.30 Remit
Tel. : 1-800-818-2771 INVOICE Fax : 1-866-932-3589 www.imperialtobacco.com Page 2 / 2 ,.«-.-20121121145105 Route: 60007 21/11/2012 Trip-Stop: 933281 -039 9108276797 22/11/2012 1060295 8108317755
· Truce unit. Modalites & · Programmes Esc/Surc · Cond. (M&C) ' au detail Prix .un.ii'.iire Net MONT ANT TOTA L' Jnd Paieinent Unit~;~~~;~ 1 • TobaccO Retailer Priee . Trade I Net UQ.it Price,, TOTA L AMOUNT' i , P aymel)t Final .Unit>; . '' ii Unit Tax .. Adj. rrTC'.$J . ; ,., Programs, ··:Q)s~ ---· ll • ···~· ;,. ,. , · DlsC/Surc '~~ P,r(~e,J#FJ~ 2,064.57 45.40-45.40-247.73 2,312.30 2,312.30
JR/DY MO AN/YR , . MONTANT NET SI'"" ... IMPERIAL TOBACCO DAT E 'PAIEMENT DO (§) S: Replaced product NET AMOUNT COMPAGNIE U MITI::E au plus :.t rd le: ll.. PAYMENT DUE DATE" 2.31 2.30 "·~""" ., IMPERIALTOBACCO r ~n I 11 I ?() 1 ?
~ A PO Box 6135, Station Centre Ville Montreal QC H3C 3S1 IMPERIAL TOBACCO CANADA Imperial Tobacco Company Limited > 1 •· · Ad~~s'se deJacturatioh /Billing Address 1 ·· Information <' MY CONVENIENCE STORE N° Com man de du client I Customer P .0. N° SAFA ENTERPRISES INC. Date de commande I Order Date 450 WEST HASTINGS STREET N° de facture / Invoice N° VANCOUVER BC V6B 1L1 Date de facturation / Invoice Date N° de compte I Account N° N° Livraison I Delivery N° Date livraison estimee I Estimated Delivery Date Poids total I Total Weight Aµre$'s'.e du destiriatalre / St-1-fop'ing~Adcfress Nombre de colis I Number of Packages MY CONVENIENCE STORE N° de sceau I Seal N° SAFA ENTERPRISES INC. Termes de paiement I Payment Terms(§) 450 WEST HASTINGS STREET VANCOUVER BC V6B 1L1 Note(§): Payment due date calculated from date of actual receipt of goods. The prices appearing on this invoice could be subject to an adjustment in the event that any rebates have to be withdrawn or the final unit prices reflected herein are incorrect. An adjusted invoice will then be issued • . . ''<\/-~§t{ ~ :hz~-}'-:'.~ : \)'f,_ • • -"'~ ~ ii ( , .. MAROpE CODE UPG :i' CONTENU / 'DESCRIPTION_ SIZE . , QUA('JTITE . Pnx ~niti:l1re BRAND UPC CODE ··'.:' . . . · ; · QUANTITY Umt Pnce .". ~ . •' " ,. . .• , '· l' ,,,~ »~' · , '., 233701 59300 02337 John Player ST Blue SPC 90% BO,r)US 1 x1 )0 1 CAR 14.43 284001 59300 52159 John Player Standard Rich Taste KS 1O x2 1 CAR 30.59 283801 59300 52148 John Player Standard Rich Taste RG 1O x~ 1 CAR 30.59 284401 59300 52161 John Player Standard Smooth Taste KS 11) 1 CAR 30.59 258601 59300 52480 Pall Mall BLUE KS 10x20 7 CAR 24.57 258201 59300 52476 .Pall Mall RED KS 10x20 7 CAR 24.57 2580015930052474 Pall Mall RED RG 10x20 1 CAR 24.57 265601 59300 50957 Peter Jackson FF KS 1 Ox20 1 CAR 30.53 266301 59300 52111 Peter Jackson Menthol KS 1O x20 .. 2 CAR 30.53 266701 59300 52092 Peter Jackson Select Flavour KS 1 t1x20 1 CAR 30.53 273701 59300 50824 Player's Smooth Flavour RG 1O x20 ' 1 CAR 45.45 27-1BG-:t- -€i93GO-aQQaG--dl:l-Mab!l"ier:-ga1ar:iGec;l-KS-1-0x2.Q 2-CA~--48A5--3Z.D_O_ __L~ 272001 59300 50303 du Maurier Balanced RG 1 Ox20 1 CAR 48.45 271001 59300 50612 du Maurier Distinct KS 10x20 1 CAR 48.45 271201 59300 50562 du Maurier Distin~ RG 1O x20 1 CAR 48.45 2706 . 0 1 59300 50281 du Maurier Signature KS 1 Ox20 2 CAR 48.45 TAXE PROVINCIALE DE TABAC I PROVINCIAL TOBACCO TAX ;·.NO.'DE PERMIS, TOTAL TAXE TABAC MONTA NT TOTAL ESCOMPTE PAIEMENT TAX LICENCE NO. TOTAL TOBACCO TAX TOTAL AMOUNT PAYMENT DISCOUNT 0005 BC I 1,128.50 ~~~:~e ZSD_RETAll_INV
Tel. : 1-800-818-2771 INVOICE Fax : 1-866-932-3589 www.imperialtobacco.com Page 1 I 2 -~--· --~ ". ''i~ 20121121145105 Route: 60007 21/11/2012 Trip-Stop: 933281-039 9108276797 22/11/2012 1060295 8108317755 23/11/2012 8.712 KG 00002 RVAN01205074, RVAN01205075 Payable within 7 days by pre-authorized debit Tel .: 6045669161 . . T8xeunit. Modalites& ProQramrTies · , _ Pa' ,_.,-~~ ·' es~S~rC :~:c- ,Prix . sur le tabac Cond. {M&C} au detail '¥ Prix Unitaire Net, ., MONT ANT TOJAl Ind Pai~ent Unitaire Final , Tobaceo Retailer Price Trade Net Unit Price TOTAL AMOUNT Payment. Final Unit Unit Tax Adj. (TTC's) Programs . . Disc/Sure . Price 18.50 0.40- 32.53 32.53 32.53 37.00 1.50- 66.09 66.09 66.09 37.00 1.50- 66.09 66.09 66.09 37.00 1.50- 66.09 66.09 66.09 37.00 1.50- 60.07 420.49 60.07 37.00 1.50- 60.07 420.49 60.07 37.00 1.50- 60.07 60.07 60.07 37.00 1.50- 66.03 66.03 66.03 37.00 1.50- 66.03 132.06 66.03 37.00 1.50- 66.03 66.03 66.03 37.00 1.50- 80.95 80.95 80.95 8-3~9_5_c--- L6L9_Q_ 83.95 37.00 1.50- 83.95 83.95 83.95 37.00 1.50- 83.95 83.95 83.95 37.00 1.50- 83.95 83.95 83.95 37.00 1.50- 83.95 167.90 83.95 JRIOY MO AN/YR 5 MONTANT·NET "...,pa•IMPERIAL roeAcco DATE PAIEMENT DO(§) S: Replaced product .. NET AMOUNT COMPAGN1EUMlrtEauplu.tlrdl•:i... PAYMENT DUE DATE" II received by IMPERIAL TOBACCO ,. '---------~ COMPANY LIMITED rt0 lat• than: Sujel a changer/Subject to change
'A> . \~ PO Box 6135, Station Centre Ville Montreal QC H3C 3S 1 IMPERIAL TOBACCO CANADA Imperial Tobacco Company Limited Adresse de facturation {Billing Address Information· MY CONVENIENCE STORE N° Commande du client I Customer P.O. N° SAFA ENTERPRISES INC. Date de commande I Order Date 450 WEST HASTINGS STREET N° de facture /Invoice N° VANCOUVER BC V6B 1L1 Date de facturation /Invoice Date N° de compte I Account N° N° Livraison I Delivery N° Date livraison estimee I Estimated Delivery Date Poids total I Total Weight . ~ctif:!'~~~'.: (!u: aestinataire' t.,Shiooin Nombre de colis I Number of Packages MY CONVENIENCE STORE N° de sceau I Seai N° SAFA ENTERPRISES INC. Termes de paiement I Payment Terms(§) 450 WEST HASTINGS STREET VANCOUVER BC V6B 1L1 Note(§): Payment due date calculated from date of actual receipt of goods. The prices appearing on this invoice could be subject to an adjustment in the event that any rebates have to be withdrawn or the final unit prices reflected herein are incorrect. An adjusted invoice will then be issued.
1 MA. ~'0~~1 ·f}JtQ. b~.k u.¥!~c ·" ' ~{< i-'~:: ' .:-v 1 CONTENU / 'DESCRIPTION - SIZE ' ,, QlJANTITE tri~ )Jnit'cii'rel Bf?{\NfB;;. <i;{Jf;:.r;JtCODE '{W\tJ ~' ;;-~ . ;~, , ;:i· ,_,, ; : QUANTITY· . ,Unit P,~q!j, • .,. >';-> .. ,,,£;.;: ·~ Prod. Sub-Total I Prod. Sous-Total I 32 Dist/A vail/Inventory Low Segment Term Total Retailer Price Adjustments Total Trade Programs . H,S.T. ( 12.00 % ) #864627385RT0001 TOTA L AMOUNT NET AMOUNT ... ;4.,...:
This Is Exhibit•-'=....· to the ij Affidavit/Declaration of Abrt~ yW!'I'"'\ Swom!Declared ~fore me at "'1 p;&,.,, BC this _£:!=-daY ~o .11;...• Saira Khan ? Notary Public for the P~ of British Columbia
TAXE PROVINCIALE OE TABAC I PROVINCIAL TOBACCO TAX ,.Y.'NO. ·DE,P,ERMiS TOTAL TAXE TABAG MONT ANT TOTAL ESCOMPTE PAI EM ENT TAX Ll.C.ENCE NO. TOTAL TOBACCO TAX TOTAL AMOUNT PAYMENT DISCOUNT Remise ~ . 000.5 BC 1 073.00 2 304.40 Remit t1 I I
Tel. : 1-800-818-2771 INVOICE Fax : 1-866-932-3589 www.imperialtobacco.com Page 2 I 2 -,, 20121205150248 Route: 60007 05/12/2012 Trip-Stop: 939948-050 9108323107 06/12/2012 1060295 8108363681 07/12/2012 . 8.915 KG 00002 RVA!\!01216227, RVAN01216228 Payable within 7 days by pre-authorized debit Tel.: 6045669161
Programme~· Taice uni!. "' I M~alit~s & ;,. . ' *1 .. ,, 0 · ·~m }''iil~.l- 1 I Esc/Sur<: · -:1w~:'!.;1i1rix }{<~ sur le tabac • Cond. {M&C) au detail Prl~ Unitaire Net MONTA,i\ITTOTAt Ind '· Paiooteni ~ynita~e Fin~I Tobiicco " , Retailer f;'iice Trade Net Uni(Price TOTAL]lMOUNJ; ' '·Payment ;, Fihal.Onip, . ',~ ;,j~i:;.~· +j\ DiSC/Stirc··' i_,.,; ;·~'.Rric~ ·~~~< Unit Tax Adj. (TTC's) Programs 2,057.51 43.50-10.34-43.50-10.34-246.89 2,304.40 2,304.40
JRIOY MO AN/YR MONT ANT NET 51 '"<" .., iMPERIAL TOBACCO DATE PAIEMENT DU(§) NET AMOUNT~ coMPAGNIE U MITI!E • • •'"' ,.,. ,.., PAYMENT DUE DATE' 2 304.40 ,.,~1vod bylMPERIALTOBAcco ~ 14 12 2012 COMPANY LIMITED no la ter than: ~11iPt ~ l"h::iinn13 r/~11h iAr.t tn r.h;:mnp
)\-- • . l~ PO Box 6135, Station Centre Ville Montreal QC H3C 3S 1 IMPERIAL TOBACCO CANADA Imperial Tobacco Company Limited Adre.sse de 'fa'cturation I Billin~ Address Information MY CONVENIENCE STORE N° Commande du client I Customer P.O. N° SAFA ENTERPRISES INC. Date de com man de I Order Date 450 WEST HASTINGS STREET N° de facture /Invoice N° VANCOUVER BC V6B 1L1 Date de facturation /Invoice Date N° de compte I Account N° N° Livraison I Delivery N° Date livraison estimee I Estimated Delivery Date Poids total I Total Weight Ad~e·sse du d~~ti'h~taire lsnioofncfAddress Nombre de colis I Number of Packages MY CONVENiENCE STORE N~ de sceau I Seai i~ 0 SAFA ENTERPRISES INC. Termes de paiement I Payment Terms(§) 450 WEST HASTINGS STREET VANCOUVER BC V6B 1L1 Note(§): Payment due date calculated from date of actual receipt of goods. The prices appearing on this invoice could be subject to an adjustment in the event that any rebates have to be withdrawn or the final unit prices reflected herein are incorrect. An adjusted invoice will then be issued.
· .; ' ,;, ·~.· ·. '" "' ' . MARQUE cop~ UPQ ' ' CO~TENU / ·DESCRIPTION - SJZE. l' QUANTll'.E Prix ~nit'.'lire ' sur le tabac .•BRAND UPCJ' CGJDE ·,: ,~· · ;,.~ ,, -,, , ~ . " , ·QUANTITY Umt Price .~·~."_,~{' 'i;/'t , '#, :f.''t.~ .. ~-~'\,~; ·. .. , ¢'' '_;:~ · · -~,q~ ' 284001 59300 52159 John Player Standard Rich Taste KS 1O x2 1 CAR 30.59 284401 59300 52161 John Player Standard Smooth Taste KS 10 1 CAR 30.59 276401 59300 50622 Marlboro KS 1O x20 1 CAR 48.45 264401 59300 50415 Matinee Mellow RG 1 Ox20 1 CAR 49.56 258601 59300 52480 Pall Mall BLUE KS 10x20 6 CAR 24.57 258401 59300 52478 Pall Mall BLUE RG 1O x20 1 CAR 24.57 270001 59300 52322 Pall Mall Black KS 10x20 1 CAR 30.53 2582015930052476 Pall Mall RED KS 10x20 • 4 CAR 24.57 281701 59300 52815 Peter Jackson Charc FT Black KS 1.0x20 1 CAR 30.53 266001 59300 50978 Peter Jackson Mellow Flavour KS 1 Ox20 1 CAR 30.53 266301 59300 52111 Peter Jackson Menthol KS 1O x20 2 CAR 30.53 - 266701 59300 52092 Peter Jackson Select Flavour KS-rox20---1-GA~-~o-:-5:)-3-r.oo- --"1-:-5tl- 278601 59300 52190 Viceroy RED KS 1O x20 1 CAR 24.57 276201 59300 50062 Vogue (Blue) Superslims 1 OOmm 1O x20 1 CAR 49.31 419000866010021 Zig Zag Blue Booklets 1x25 1 BOX 19.90 221500 08660 10041 Zig Zag Ultra Thin Booklets 1x 25 1 BOX 21.33 36fOO 08660 10011 Zig Zag White Booklets 1 x25 1 BOX 19.90 271801 59300 50020 du Maurier Balanced KS 1O x20 1 CAR 48.45 271001 59300 50612 du Maurier Distinct KS 1O x20 2 CAR 48.45 270601 59300 50281 du Maurier Signature KS 10x20 2 CAR 48.45 270801 59300 50293 du Maurier Signature RG 1O x20 1 CAR 48.45 TAXE PRO VINCIAL£ DE TABAC I PROVINCIAL TOBACCO TAX No. DE iiE:aM1s I I TOTAL TAXE TABAc MONTANT TOTAL .. ESCOMPTE PAIEMENT TAX LICENCE NO. " TOTAL TOBACCO TAX TOTAL AMOUNT eAYMENT DISCOUNJ' I Remiss ~ Remit
Tel. : 1-800-818-2771 INVOICE Fax : 1-866-932-3589 www.imperialtobacco.com Page 1 I 2 / ',·'••. ;., ~ · 20121205150248 Route: 60007 05/12/2012 Trip-Stop: 939948-050 9108323107 06/12/2012 10 60295 81 08363681 07/ 12/2012 · 8.915 KG 00002 RVAN01216227, RVA!\101216228 Payable within 7 days by pre-authorized debit Tel.: 6045669161
Taxe unit Modalites & Programmes . ,.,, · ~" '""'if · Esc/Surc Prix y•; Cond. (M&C) ' ap d~tail Prix _Unitain.1 ~et ; :.~ONTA~ TOTA,L 11'10 . Pai~ent Unitaire Fina,,'; Tobacco Retailer Price · <.Trade ·'' Net Unit Price g·;:TOTALAMOUN~ •'WI~ Payment F/na!Umt ,1 ;. Unit Tax Adj_ (iTC's) 'f.2; P_rograms ' /, , 1 , ;iit Disc/Sure PriCa .\~ 37.00 1.50- 5.17- 60.92 60.92 60.92 37.00 1.50- 5.17- 60.92 60.92 60.92 37.00 1.50- 83.95 83.95 83.95 37.00 1.50- 85.06 85.06 85.06 37.00 1.50- 60.07 360.42 60.07 37.00 1.50- 60.07 60.07 60.07 37.00 1.50- 66.03 66.03 66.03 37.00 1.50- 60.07 240.28 60.07 37.00 1.50- 66.03 66.03 66.03 37.00 1.50- 66.03 66.03 66.03 37.00 1.50- 66.03 132.06 66.03 06-:-es---66-.-86 ee~Ga-. 37.00 1.50- 60.07 60.07 60.07 37.00 1.50- 84.81 84.81 84.81 19.90 19.90 19.90 21.33 21 .33 21 .33 19.90 19.90 19.90 37 .00 1.50- 83.95 83.95 83.95 37.00 1.50- 83.95 167.90 83.95 37.00 1.50- 83.95 167.90 83.95 37.00 1.50- 83.95 83.95 83.95 JR/DY MO AN/YR MONTANT NET .l .. ,,...., IMPERIAL ro•Acco DATE PAIEMENT oo <§l NET AMOUNT COMPAGNIE UMlrt,E •u plu• t.rd le: llrrrr.. PAYMENT DUE DATE" II received by IMPERIAL TOBACCO ,.. COMPANY UMrTEO no l•ler than :
Print http://ca-mg6.mail.yahoo.com/neo/launch? .rand=Opmkhvtfe288d#mai I Subject: My Convenience Store l From: Adnan Mustafa (adnan.must@yahoo.ca) To: rlaing@itl.ca; Date: Thursday, December 27. 2012 3:29:07 PM Hi Rob, Hopefully you will be having great holidays. It's almost the end of December and we did not hear anything about the pricing program review from your company. I was hoping you will be contacting us during 1st or 2nd week of this month as I got to knew that Imperial Tobacco[ was introducing some new program to the retailers at that time.
Anyways, whenever you get back from holidays or get time please get us u~dated about the developments. Hope to hear from you very soon.
Adnan Mustafa, ITCL: 1060295 Safa Emterprises Inc. dba My Convenience Store 604-566-9161
Saira ~han Notary Publlc for the Pr British Columbia
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Print http: //ca-mg6.mail.yahoo.com/neo/Jaunch?.rand=Opmkhvtfe288d#mail Subject: Extremely Urgent: Safa Enterprises Inc. From: Adnan Mustafa (adnan.must@yahoo.ca) To : rlaing@itl.ca; Date : Monday, January 7, 2013 3:27:05 PM p..q. Imperial Tobacco Canada Limited Saira Khan Notary Public for the Pr British Columbia Hi Rob,
Thank you for stopping by at our store this morning on our request and providing us with up to date information about our request to provide us equal opportunity to make our living in our small establishment. We are really disappointed that we have been ignored by Imperial Tobacco Canada for
the 4th consecutive review. These actions of ITCL have adversely affected since June 2011 and still affecting not only to our business but our family life as well.
We are informing you that due to ITCL's behavior we will be unable to sell Imperial tobacco Canada's products above our cost. We have no other option to sell your products at or below our cost to compete with our next door neighbor (New Hasty Market 440 West Hastings St.) to survive in the market. New Hasty Market has been provided unfair advantage over us since June 2011 by ITCL by awarding special pricing program offered to our neighbor. We are trying to resolve this issue since last 3 months. All we requested was to provide us the equal opportunity to earn our living.
Final Demand: We are demanding ITCL to resolve this issue by January 14th 2013 and provide us with the equal opportunity to earn our living and compensate for the loss incurred and distress caused due to ITCL's policies since June 2011 and for the future losses as well. We need the phone number or contact information of the pers1()n who is in a position to resolve the issue in stipulated time.
Actions ITCL Expects: As we believe that ITCL's actions are in Violation of Sale of Goods Act and Federal Competition act; we will pursue all the legal course of actions available to us to protect our business interest.
Adnan Mustafa I of2 A 91612013 10:15 AM
Print http: //ca-mg6.mail.yahoo.com/neo/launch?.rand=Opmkhvtfe288d#mail Manager, ITCL Account No. 1060295 Safa Enterprises Inc. dba My Convenience Store 450 West Hastings St Vancouver BC V6B lLl Phone 604-566-9161 Fax:604-566-9836
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Print http: // ca-mg6.mai l .yahoo.com/neo/launch? .rand=Opmkhvtfe28 8d#mai I Subject: Extremely Disappointed by ITCL attitude From: Adnan Mustafa (adnan.must@yahoo.ca) To : rlaing@itl.ca; Dat e: Friday, January 11, 2013 2:23:38 PM p,.q. Saira Khan Imperial Tobacco Canada Limited ~f:S'Y Public for the PrC>\lin09 of British Columbia Hi Rob, I am really disappointe after meeting you today when you told me that instead of resolving the problem we are facing due to your company's discriminating policy that your company has a very good legal team and they are saying that Imperial Tobacco is not engaged in any illegal activity by discriminating 2 stores located side by side. We believe that your company involved in not only illegal but also unethical activity by providing unfair advantage to one business and leaving other business to suffer since June 2011. We provided your company an opportunity to rectify the discriminating behavior towards our business, in response your company is insisting to continue their policy even in future .
We wanted to send this email to someone else instead of you but as requested you never provided us with the contact information of any higher authority who could resolve the problem, we even called customer service to ask someone to call us to resolve this issue but no one contacted us to-date . We are sending this email to you as we do not have any other contact person at your company and the other reason to get our meeting documented to be presented in the court of law when required.
We are reproducing the applicable Section 76 from Federal Competition Act for your "Excellent Legal team":
· 76. (1) On application by the Commissioner or a person granted leave under section 103.1, the Tribunal may make an order under subsection (2) if the Tribunal finds that
• (a) a person referred to in subsection (3) directly or indirectly o (i) by agreement, threat, promise or any like means, has influenced upward, or has discouraged the reduction of, the price at which the person's customer or any other person to whom the product comes for resale supplies or offers to supply or advertises a product within Canada, or o (ii) has refused to supply a product to or has otherwise discriminated against any person or class of persons engaged in business in Canada because of the low pricing policy of that
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Print other person or class of persons; and • (b) the conduct has had, is having or is likely to have an adverse effect on competition in a market.
· Marginal note:Order (2) The Tribunal may make an order prohibiting the person referred to in subsection (3) from continuing to engage in the conduct referred to in paragraph (l)(a) or requiring them to accept another person as a customer within a specified time on usual trade terms.
· Marginal note: Persons subject to order (3) An order may be made under subsection (2) against a person who • (a) is engaged in the business of producing or supplying a product;
Having good legal team does not give right to make a small family business suffer to your company. I am sure that Canadian C urts will hear to our plea. I was fighting with cancer last year and survived. I will fight this injustice by your esteemed company and will win again as your company willfully committing this crime against my family. As I know your company's intentions we will be meeting in court of law very soon.
Thank you, Adnan Mustafa Manager, ITCL Account No. 1060295 Safa Enterprises Inc. dba My Convenience Store 450 West Hastings St Vancouver BC V6B lLl Phone 604-566-9161 Fax:604-566-9836
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IMPERIAL TOBACCO COMPANY
1329 - 45th Avenue NE Saira Khan Calgary, AB T2E 2P3 Notary Public for Canada British Columbia Tel. 1-403-717-8020 Fax 1-403-5 31-9589 Toll free 1-888-896-6910 www.imperialtobaccocanada.com
January 17 , 20 I} Without Prejudice Safa Enterprises Inc. dba My Convenience Store (ERP# 1060295) c/o Mr. Adnan Mustafa, Manag~r ' 450 West Hastings Street Vancouver, BC V6B lLl
Dear Sir, I am writing in response to the complaint you made recently to your Account Representative, Rob Laing, in relation with our expansion, preferred pricing program (the "PPP").
As you probably know, the main objective of this program is to ultimately offer lower retail prices to consumers on Imperial Tobacco products. The PPP is offered to selected retailers, comprised of both independent small businesses as well as corporate banners. It is legal to offer the PPP to some retailers, and not to all. We have attempted to select as many independent retailers as possible, keeping in mind that limited financial resources prevent us frQm offering the PPP to all customers.
Let me reassure you that we are, and continue to be, fully committed to all our customers, including those who are not participating in the PPP. We express our commitment to you and your business in various manners. First, by offering you a winning brand portfolio comprising high quality products and unique innovations. Our portfolio provides you with the leading brands that adult smokers are looking for. Our commitment to your business continues day in and day out through our DSS model, which ensures that your ITCO products are delivered to your store, hassle free and your ITCO Account representative is always available to help you with any issues that you may encounter. Finally, our commitment to your business is also to keep our prices as competitive as possible in each segment. In essence, our commitment to you is to offer popular and innovative brands, competitive prices and unique service through our DSS model.
Imperial Tobacco Company Limited
1
1 lMPERIAL TOBACCO COMPANY
1 329 - 45th Avenue NE Calgary, AB T2E 2P3
Canada Tel. 1-403-71 7-8020 Fax 1-403-531 -9589 Toll free 1-888-896-691 0 www.imperialtobaccocanada.com
I understand y911r disappointment from the fact that your outlet is not eligible to PPP. But you should not underestimate the benefits that you derive froni your participation in our Low Segment Term Program ("LST Program"). Indeed, the LST Program provides you with substantial rebates (which are equivalent to the PPP rebates) on John Player Standard which is the number 1 selling brand in Canada. In addition, if you wish to obtain higher rebates on our products, we invite you to consider the option of adopting the PAD 0 days payment term. It would award you an additional rebate of $0.45 per carton of Premium and $0.35 per carton of Below Premium cigarettes. Ple~s~ consult with your Account Representative (Rob Laing at 778-874-7823) or your District Manager (Vincent Chai at 604-366-5085) if you wish to learn more about this option.
Thank you and regards, ·e rry Schmidt Regional Sales Manager
-, '--Imperial Tobacco Company Limited
IMPERIAL TOBACCO COMPANY
Saira Khan Notary Public for the Pr British Columbia January 25, 2013 CONFIDENTIAL Safa Emelwises luc. dha My Convenience Store (ERP# 1060295) c/o Mr. Adnan Mustafr1, Manager
450 West Hastings Street Vancouver, BC
Y6B lLl
Mr. Mustafa, This is in response to your emai l elated January 23, 2013 in which you requested the eligibility criteria for our Preferred Pricing Progrnm ("PPP").
A rernilcr 's eligibility to participate in the PPP is assessed based on the following specific criteria: a) the retailer's volume of tobacco products relative to other stores in the area; b) the geographical location of a retailer' s outlet and the demographic profile of the population SUITOLmding the reti1iler 's location; and
c) the retailer 's willingness, capability and motivation to work with rrco and to implement ITCO initiatives.
Limited fii1ancii11 resources prevent frCO from offering PPP to every eligible retailer in Canada and ITCO selects carefolly from the eligible outlets~ Where a retail outlet declin~s an offer to pa1iicipate in PPP, the offer is made to another retail outlet satisfying the criteria. To be clear, lhe law pem1its lTCO to select those retailers to whom it wishes to offer PPP.
I understand your disappointn1ent from the fact that your outlet is not eligible to PPP. But, as I mentioned in my· previous letter, you .should no! rn1derestimate .the benefits that you derive from your pmiicipat ion in the Low Segment Terin Program.
' 'hietry Schmidt Regional Sales Mmwger
lmpNial Tobacco Company Limited
1 329 · '15 th Avenue NE Catgar;, l\B T2 f. 21'3 Canada fol. ] . 403-71 7 -8020 l'i:~ 1-403-5 31-9589 Toll free; 1 .. 8l;l8-8%,69·1o vNxw.imp<Uialtobatcoca11<1da.corn Without Pn:J.iuclice
'::£_
T 0898932 BC Ltd. OBA New Hasty Market ' 440 West Hastings St, Vancouver BC V6B lll ~~.1 Products or~\~ -/ Cigarettes & Cigars Grocery = ~ 2 • O! O Chocolate & Candies Soft Drinks & Slush ~~i~ i Dairy Internet w~ !,~ .~ ca~..I~ Souveni rs MoneyGram .!!! ~ ~ ~ ~~ ~ ~:{ cng ~ ~ S Phone Cards
Safa Enterprises Inc. OBA My Convenience Store / 450 West Hastings St, Vancouver BC V6B lll Products Cigarettes & Cigars Grocery Chocolate & Candies Soft Drinks & Slush Dairy Internet Souvenirs Mobilicity Phone Cards Lotto 4..