AMENDMENT #3 Cadbury Schweppes Bottling Group, Inc.
Exhibit
10.7
April 4, 2007
Cadbury Schweppes Bottling Group, Inc. |
CROWN Cork & Seal USA, Inc (“Crown”) is pleased to offer this Amendment #3 to the June 15, 2004
Agreement (as previously amended on August 25, 2005 and June 21, 2006) between Crown and Xx
Xxxxxx/Seven Up Bottling Group, Inc. (“Xx Xxxxxx/Seven Up”) now known as Cadbury Schweppes Bottling
Group, Inc. (“Cadbury”) for the supply of aluminum 12-ounce beverage cans and ends (“Containers”).
The purpose of this Amendment #3 is to include additional Cadbury filling locations, add aluminum
8-ounce cans to the Agreement, and to revise certain other provisions of the Agreement as described
below:
LOCATIONS & VOLUMES: In addition to the Cadbury filling locations included in the current
Agreement (as previously amended), Crown shall supply and Cadbury agrees to purchase from
Crown, *% of their 8-ounce and 12-ounce Container requirements for the following Cadbury
filling locations beginning on or approximately *:
Location | Estimated Annual Volumes | |||
Sacramento, CA
|
* | 12-ounce | ||
Sacramento, CA
|
* | 8-ounce | ||
Ottumwa, IA
|
* | 8-ounce | ||
Irving, TX
|
* | 8-ounce | ||
Total Additional Volume | * |
If any of the Cadbury can filling locations supplied under the Agreement as amended
herein are closed and volume is moved to a replacement filling location, Crown shall
have the right to supply such relocated Container volume at the replacement filling
location pursuant to the terms of the Agreement.
PRICING: The initial base prices for Containers to be supplied by Crown pursuant to this Amendment
#3 (effective January 1, 2007) are:
Sacramento, CA: | 12-ounce cans | |
with XXX End | ||
12-ounce can bodies
|
$* | |
Aluminum adjustment
|
$* | |
Total can body price
|
$* | |
202 dia. XXX ends
|
$* | |
Aluminum adjustment
|
$* | |
Total XXX end price
|
$* | |
Total 12-oz Container
|
$* |
* | Confidential treatment has been requested. The redacted material has been separately filed with the Xxxxxxxxxx. |
0
Xxxxxxxxxx, XX: | 8-ounce cans | |
with XXX End | ||
8-ounce can bodies
|
$* | |
Freight charge
|
$* | |
Aluminum adjustment
|
$* | |
Total can body price
|
$* |
End units for the 8-ounce
Containers at Sacramento shall be
priced *.
Ottumwa, IA and Irving, TX: | 8-ounce cans | |
with SuperEnds | ||
8-ounce can bodies
|
$* | |
Aluminum adjustment
|
$* | |
Total can body price
|
$* |
End
units for the 8-ounce Containers at Ottumwa and Irving shall be priced*.
PAYMENT TERMS: As in the current Agreement, payments for Containers supplied under this Amendment
#3 shall be due net * days from the date of invoice—no cash discounts will be allowed.
SUPER-ENDS ® : Conversion of the Sacramento, CA filling location from “XXX” to
“Super-End®”
ends shall be completed on a mutually agreeable schedule *.
* agrees to * required to
convert the Sacramento location to Super-End®. Seamer overhaul and repair costs
are *. Upon conversion to
SuperEnd®, the end prices at Sacramento shall be adjusted to reflect the SuperEnd®
savings of $* per thousand ends.
FREIGHT: The above prices include freight delivery costs to the various Cadbury filling locations.
Cadbury may use its own fleet of trucks to pick-up cans and/or ends at the Crown
manufacturing facilities and Crown shall give a freight allowance equal to its cost to deliver
by commercial carrier. Crown intends to supply can bodies to the various Cadbury filling
locations from the following can manufacturing facilities:
Cadbury | Crown’s Can Supply | |
Filling Locations | Location (& Back-up) | |
Sacramento, CA 12-oz
|
* | |
Sacramento, CA 8-oz
|
* | |
Ottumwa, IA 8-oz
|
* | |
Irving, TX 8-oz
|
* |
* | Confidential treatment has been requested. The redacted material has been separately filed with the Commission. |
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PRICE CHANGES: The initial base prices shall be adjusted pursuant to the provisions of the
current amended Agreement except for the following:
1) | During the year 2007, price adjustments for * 12-ounce can bodies and all 202 diameter end units at the Sacramento location shall be based on a *. | ||
2) | * of all 8-ounce can bodies at Ottumwa, Irving and Sacramento shall be based on *. The first quarter 2007 invoice prices for 8-ounce can bodies shall reflect *. At the end of each calendar quarter, a reconciliation shall be performed reflecting * multiplied by the number of 8-ounce cans purchased by Cadbury during each of those months. |
*
*
*
CONFIDENTIALITY: Cadbury and Crown agree to maintain strict confidentiality regarding the contents
of this Amendment #3 including pricing and all other terms set forth herein.
OTHER TERMS AND CONDITIONS: Except as specifically modified by this Amendment #3, all other terms
and conditions of the amended Agreement shall remain in full force and effect.
* | Confidential treatment has been requested. The redacted material has been separately filed with the Commission. |
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If you are in agreement with the provisions of this Amendment #3 as set forth above, please sign in
the space provided below and return one original copy to Crown.
CROWN Cork & Seal USA, Inc. | ||||||
By: |
/s/ | |||||
Title: |
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CADBURY SCHWEPPES BOTTLING GROUP, INC | . | |||||
By: |
/s/ | |||||
Title: |
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