Exhibit 10.1
BUYER TRANSITION SERVICES AGREEMENT
-----------------------------------
THIS TRANSITION SERVICES AGREEMENT ("Agreement") is made and entered into
this 24/th/ day of November, 2003, by and between ConAgra Foods, Inc., a
Delaware corporation ("ConAgra"), UAP Holding Corp., a Delaware corporation
("UAP"), and each of the other companies listed on the signature pages hereto
(the "Companies").
RECITALS:
---------
(a) Pursuant to the Stock Purchase Agreement (the "Definitive Agreement")
dated as of October 29, 2003, by and between ConAgra and UAP, ConAgra
agreed to enter into, and UAP agreed to cause the Companies to enter
into, a transition services agreement pursuant to which ConAgra shall
provide to the Companies certain transition services which have
heretofore been provided to the Companies by ConAgra or its affiliates
(other than the Companies).
(b) UAP has requested that for a limited period of time ConAgra continue
to provide, or cause its affiliates (other than the Companies) to
provide, the services set forth on Exhibit "A" (the " Services") to
the Companies in a manner consistent with the manner in which the
Services have heretofore been provided by ConAgra or its affiliates
(other than the Companies) to the Companies.
(c) ConAgra is willing to enter into this Agreement and to provide, or
cause its affiliates (other than the Companies) to provide, the
Services upon the terms and conditions hereinafter set forth.
AGREEMENT:
----------
NOW, THEREFORE, in consideration of the foregoing recitals which are
incorporated with and made a part of this Agreement, and in further
consideration of the mutual covenants and agreements herein contained, the
parties agree as follows:
1. Services.
1.1 Services. Upon the terms and subject to the conditions contained
herein, ConAgra agrees to provide, or cause its affiliates (other than
the Companies) to provide, the Services to the Companies in a manner
consistent with the manner in which the Services have heretofore been
provided by ConAgra or its affiliates (other than the Companies) to
the Companies. The Companies shall have the right to terminate one or
more of the Services, or any part of such Services where the cost can
be itemized, by giving at least thirty (30) days prior written notice
to ConAgra. Except for those third parties historically retained by
ConAgra with
1
respect to the Services, ConAgra agrees not to retain additional third
parties except where it does not have internal resources that can
provide the applicable Service on a commercially-reasonable basis.
2. Term. The Services shall be provided by ConAgra or its affiliates
(other than the Companies) for a period of twelve (12) months following the date
hereof, with the exception of those Services terminated pursuant to Section 1.1
above and except as otherwise provided on Exhibit "A" and in Section 10 below;
provided, however, that the Companies and UAP shall use all commercially
reasonable efforts to replace the Services. The parties may agree to extend any
such time period by mutual written agreement.
3. Consideration. As consideration for the performance of the Services,
UAP shall pay, or cause the Companies to pay, to ConAgra $7,500,000 ("Transition
Services Fee") upon the parties' execution of this Agreement and the amounts set
forth on Exhibit "A". In addition, UAP shall pay, or cause the Companies to pay,
all sales, use or similar taxes payable with respect to the performance of the
Services. ConAgra shall invoice UAP monthly for the Services provided. Payment
shall be made within thirty (30) days of receipt of the invoice. The invoices
will be accompanied by supporting documentation consistent with past practice
for each category of service charge and supporting third party payment
documentation and/or volume/fee metrics supporting invoice amounts, as
applicable. If a payment amount is not received by ConAgra by such date, then a
late payment charge equal to one percent (1%) per month shall be paid on all
amounts due but not received on or before the due date. If the Companies
terminate any of the Services prior to the expiration of the applicable term for
the provisions of such services as set forth on Exhibit "A" , the Companies will
be responsible for payment only for the services provided through the date of
such termination. Fees set forth on Exhibit "A" are for ConAgra's fiscal year
2004 only. To the extent any Services are provided during ConAgra's fiscal year
2005, fees payable by UAP thereunder shall be based on amounts allocated to such
services for other ConAgra divisions and operating companies in ConAgra's fiscal
year 2005 budget and will be applied consistent with the application during
ConAgra's fiscal years 2003 and 2004 (and any such increase will be a result of
increased costs to ConAgra). In addition, ConAgra may increase the fees to be
charged for any Services provided by a third party and charged on a pass through
of direct third party costs by an amount not to exceed the amount charged by
such third party.
4. Cooperation. UAP and the Companies shall cooperate fully with ConAgra,
or its affiliates providing such Services, by promptly providing reasonable
assistance (including, without limitation, information, personnel and equipment
consistent with past practice) to perform the Services and by causing the
Companies to have staff and facilities required to accept the Services in a
manner consistent with past practices.
5. Limitations on Services Provided. ConAgra shall provide or cause its
affiliates (other than the Companies) to provide, the Services to the Companies
in a manner consistent with, and limited in scope to, past practice. To the
extent services are hereinafter identified that have historically been provided
by ConAgra or its subsidiaries or divisions (other than the Companies) to the
Companies, to the extent requested by UAP, ConAgra shall provide or cause its
subsidiaries or divisions (other than the Companies) to provide, such services
pursuant to the terms of this Agreement, in a manner and on terms consistent
with past practices. In such case
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the parties will negotiate in good faith the compensation for such services with
the compensation consistent with past practices. It is understood and agreed by
the Companies and UAP that ConAgra assumes no other liability or responsibility
whatsoever under this Agreement other than to perform the Services in good
faith. It is further understood and agreed that, so long as ConAgra, or its
affiliates (other than the Companies), performs the Services in good faith,
ConAgra, or its affiliates providing such Services, shall not be liable to UAP
or the Companies with respect to such Services except by reason of acts of
ConAgra, or its affiliates (other than the Companies) consisting of willful
misconduct or gross negligence on ConAgra's or its affiliates' (other than the
Companies) part.
6. Confidential Information. Each party acknowledges that in connection
with this Agreement it may receive certain confidential information
("Confidential Information"). The receiving party shall not at any time disclose
the Confidential Information to any person, firm, partnership, corporation or
other entity (other than such receiving party's affiliates, directors, officers,
employees or agents who have a need to access the Confidential Information) for
any reason whatsoever, nor shall the receiving party use the Confidential
Information for its benefit or for the benefit of any person, firm, partnership
or affiliates during the term of this Agreement and for a period of two (2)
years after the termination hereof unless required by law, rule or regulation,
by any governmental authority or in response to any valid legal process
(provided that the parties so required to disclose will provide the other party
with prompt notice of any such requirement so that the other party may seek an
appropriate protective order). Each party shall take all actions necessary to
ensure that its employees and representatives having access to the Confidential
Information are bound by the terms of this Agreement. Confidential Information
shall not include information which (i) was in the receiving party's possession
prior to disclosure, (ii) is hereafter independently developed by the receiving
party, (iii) lawfully comes into the possession of the receiving party, or (iv)
is now or subsequently becomes, other than through a breach of this Agreement by
the receiving party, publicly available. The Companies, UAP and ConAgra also
acknowledge that data developed by it for another party in connection with the
performance of its obligations hereunder shall be the property of such other
party and that such other party shall retain all right, title and interest to
such data.
7. Indemnity. During the course of, and upon and after termination of
this Agreement for any reason whatsoever, the Companies and UAP each hereby,
jointly and severally, agree to indemnify and hold ConAgra and its affiliates
(other than the Companies and UAP) harmless from and against any loss,
liability, damage or expense whatsoever (including court costs and reasonable
attorneys' fees) incident to any claim, action or proceedings against ConAgra
and its affiliates (other than the Companies and UAP) which arise out of or
relate to the performance of the Services, except acts of ConAgra and its
affiliates (other than the Companies and UAP) constituting willful misconduct or
gross negligence. During the course of, and upon and after termination of this
Agreement for any reason, ConAgra hereby agrees to indemnify and hold the
Companies and UAP harmless from and against any loss, liability, damage or
expense whatsoever (including court costs and reasonable attorneys' fees)
incident to any claim, action or proceeding against any of the Companies or UAP
which arise out of or relate to ConAgra's willful misconduct or gross
negligence.
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8. Miscellaneous.
8.1 Non-Assignability. None of the parties hereto shall assign its rights
or delegate its duties under this Agreement without the prior written
consent of the other parties hereto except to an Affiliate of such
party and except that UAP or the Companies may assign and/or charge
all or any of its rights under this Agreement by way of security to
any bank(s) and/or holders of any debt securities and/or financial
institution(s) and/or hedge counterparties and/or any other person
(together, the "Financiers") lending money or making other banking
facilities available to the Companies, UAP and their respective
affiliates or to any Financiers who provide funds on or in connection
with any subsequent refinancing of any such funding or to any person
from time to time appointed by any Financier to act as a security
trustee on behalf of such Financier; without limitation to the
foregoing, any such person or Financier may assign such rights on any
enforcement of the security under such finance arrangement; provided
further, however, that no assignment under this Section 8.1 shall
relieve UAP of its obligations hereunder. Subject to the foregoing,
this Agreement shall be binding on, and inure to the benefit of, the
parties and their respective affiliates, successors and assigns.
8.2 Governing Law. This Agreement shall be governed by and construed and
interpreted in accordance with the laws of the State of Delaware,
irrespective of the choice-of-laws principles of the State of
Delaware.
8.3 Third Party Beneficiaries. Except as otherwise expressly provided in
this Agreement, the provisions of this Agreement are for the benefit
of the parties hereto and not for any other person. This Agreement
shall not provide any third person with any remedy, claim,
reimbursement, claim of action or other right in excess of those
existing without reference to this Agreement.
8.4 No Partnership. Nothing contained in this Agreement shall be deemed or
construed to create a partnership or a joint venture among the parties
hereto, to make any party an agent or legal representative of the
other, to cause ConAgra to be responsible in any way for the debts or
obligations of UAP, the Companies or any other party, or to cause the
Companies or UAP to be responsible for the debts or obligations of
ConAgra. The Companies and UAP acknowledge that ConAgra shall be an
independent contractor in the performance of the Services.
8.5 Notices. All notices or other communications under this Agreement
shall be in writing and shall be deemed to be duly given when
delivered or mailed in accordance with the provisions of the
Definitive Agreement.
8.6 Severability and Invalidity. Any provision of this Agreement which is
invalid or unenforceable in any jurisdiction shall, as to that
jurisdiction, be ineffective to the extent of such invalidity or
unenforceability without rendering invalid or unenforceable the
remaining provisions of this Agreement or affecting the validity
4
or enforceability of any of the provisions of this Agreement in any
other jurisdiction. If any provision of this Agreement is so broad as
to be unenforceable, the provision shall be interpreted to be only so
broad as is enforceable.
8.7 Force Majeure. Except for UAP's and the Companies' obligations to pay
monies under this Agreement, each party shall be excused from its
obligations under this Agreement to the extent that, and no party
hereto shall be liable for any loss or damage whatever arising out of,
any delay or failure in the performance of such obligations results
from any cause beyond its reasonable control (and without the fault of
such party), including, without limitation, performance by third
parties, power failures, computer equipment or system failures, acts
of God, acts of civil or military authority, embargoes, epidemics,
war, terrorism, riots, insurrections, fires, explosions, earthquakes,
floods, severe weather conditions or labor problems.
8.8 Captions. The paragraph headings and captions contained in this
Agreement are for reference purposes only and shall not affect in any
way the meaning or interpretation of this Agreement.
8.9 Authority. Each party represents and warrants that the officer
executing this Agreement on its behalf is duly authorized to so
execute this Agreement, and this Agreement, when executed and
delivered by such party, shall constitute the valid and binding
agreement of such party, enforceable in accordance with its terms.
8.10 Amendments. No provisions of this Agreement shall be deemed waived,
amended, supplemented or modified by either party, unless such waiver,
amendment, supplement or modification is in writing and signed by the
authorized representative of the party against whom it is sought to
enforce such waiver, amendment, supplement or modification.
8.11 Entire Agreement. This Agreement and the Definitive Agreement set
forth the entire agreement of the parties with respect to the subject
matter hereof and supersede all prior agreements, writings,
communications, negotiations, discussions and understandings between
the parties pertaining to the subject matter hereof.
8.12 Affiliates. The Companies and UAP hereby acknowledge that ConAgra
provides services to itself and its affiliates and subsidiaries that
are similar to the Services, and the Companies and UAP hereby waive
any conflict which may be created thereby.
8.13 Counterparts. This Agreement may be executed in counterparts, each of
which is to be deemed an original, and all of which constitute,
collectively, one agreement.
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9. Consent to Jurisdiction. THE PARTIES HERETO HEREBY IRREVOCABLY SUBMIT
TO THE EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL OR DELAWARE STATE
COURT SITTING IN WILMINGTON, DELAWARE IN ANY ACTION OR PROCEEDING ARISING OUT OF
OR RELATING TO THIS AGREEMENT AND EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY
AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING SHALL BE HEARD
AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW
OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT
IN SUCH A COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM.
10. Employee Benefits. The parties agree for the period between the date
hereof and December 31, 2004, the employees of the Companies will continue their
participation in those welfare plans and programs currently maintained by
ConAgra and specified by UAP that provide health, disability, life and other
welfare benefits, which will continue to be maintained by ConAgra or its
Subsidiaries (other than the Companies). ConAgra agrees to modify its welfare
plans or to cause its Subsidiaries (other than the Companies) to modify their
welfare plans to permit the continued participation by the employees of the
Companies after the Closing Date. The Companies shall reimburse ConAgra for all
actual costs associated with the Companies' employees' continued participation
in these welfare plans including, without limitation, payments or fees paid by
ConAgra in connection with the Peoplesoft license which relates to employees at
the Companies continued participation in ConAgra's welfare plans and programs.
ConAgra will cooperate to be extent reasonably requested by UAP to assist UAP
and/or the Companies in their efforts to obtain stop loss insurance with respect
to claims by employees of the Companies in connection with their continued
participation under ConAgra's welfare benefit plans pursuant to the terms of
this Section 10.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the
date first above written.
UAP HOLDING CORP., CONAGRA FOODS, INC.,
a Delaware corporation a Delaware corporation
By: /s/ Xxxxx Xxxxxxx By: /s/ Xxxxxxx X. Xxxxx
--------------------------------- ---------------------------------
Its: Authorized Signatory Its: Authorized Signatory
--------------------------------- ---------------------------------
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COMPANIES:
----------
UNITED AGRI PRODUCTS, INC.,
a Delaware corporation
By: /s/ Xxxxx Xxxxxxx
---------------------------------
Its: Authorized Signatory
---------------------------------
AG-CHEM, INC., XXXXXX CHEMICALS, INC.,
a Maryland corporation a Colorado corporation
By: /s/ Xxxxx Xxxxxxx By: /s/ Xxxxx Xxxxxxx
--------------------------------- ---------------------------------
Its: Authorized Signatory Its: Authorized Signatory
--------------------------------- ---------------------------------
UAP 23, INC., f/k/a CAG 23, INC., CROPMATE COMPANY,
a Delaware corporation a Delaware corporation
By: /s/ Xxxxx Xxxxxxx By: /s/ Xxxxx Xxxxxxx
--------------------------------- ---------------------------------
Its: Authorized Signatory Its: Authorized Signatory
--------------------------------- ---------------------------------
CSK ENTERPRISES, INC., GAC 26, INC.,
a Delaware corporation a Nebraska corporation
By: /s/ Xxxxx Xxxxxxx By: /s/ Xxxxx Xxxxxxx
--------------------------------- ---------------------------------
Its: Authorized Signatory Its: Authorized Signatory
--------------------------------- ---------------------------------
UAP 27, INC., f/k/a CAG 27, INC. GROWER SERVICE CORPORATION
a Delaware corporation (NEW YORK), a New York Corporation
By: /s/ Xxxxx Xxxxxxx By: /s/ Xxxxx Xxxxxxx
--------------------------------- ---------------------------------
Its: Authorized Signatory Its: Authorized Signatory
--------------------------------- ---------------------------------
HACO, INC., LOVELAND PRODUCTS, INC.,
an Illinois corporation a Colorado corporation
By: /s/ Xxxxx Xxxxxxx By: /s/ Xxxxx Xxxxxxx
--------------------------------- ---------------------------------
Its: Authorized Signatory Its: Authorized Signatory
--------------------------------- ---------------------------------
7
LOVELAND INDUSTRIES, INC., GENMARKS, INC.,
a Colorado corporation a Delaware corporation
By: /s/ Xxxxx Xxxxxxx By: /s/ Xxxxx Xxxxxxx
--------------------------------- ---------------------------------
Its: Authorized Signatory Its: Authorized Signatory
--------------------------------- ---------------------------------
MIDWEST AGRICULTURE XXXXXXX CHEMICAL CO.,
WAREHOUSE CO., a Nebraska corporation a North Dakota corporation
By: /s/ Xxxxx Xxxxxxx By: /s/ Xxxxx Xxxxxxx
--------------------------------- ---------------------------------
Its: Authorized Signatory Its: Authorized Signatory
--------------------------------- ---------------------------------
PLATTE CHEMICAL CO., PUEBLO CHEMICAL & SUPPLY CO.,
a Nebraska corporation a Colorado corporation
By: /s/ Xxxxx Xxxxxxx By: /s/ Xxxxx Xxxxxxx
--------------------------------- ---------------------------------
Its: Authorized Signatory Its: Authorized Signatory
--------------------------------- ---------------------------------
RAVAN PRODUCTS, INC., S.E. ENTERPRISES, INC.,
a Georgia corporation a Delaware corporation
By: /s/ Xxxxx Xxxxxxx By: /s/ Xxxxx Xxxxxxx
--------------------------------- ---------------------------------
Its: Authorized Signatory Its: Authorized Signatory
--------------------------------- ---------------------------------
SNAKE RIVER CHEMICALS, INC., TRANSBAS, INC.,
an Idaho corporation a Tennessee corporation
By: /s/ Xxxxx Xxxxxxx By: /s/ Xxxxx Xxxxxxx
--------------------------------- ---------------------------------
Its: Authorized Signatory Its: Authorized Signatory
--------------------------------- ---------------------------------
TRI-RIVER CHEMICAL COMPANY, INC., TRI-STATE CHEMICALS, INC.,
a Washington corporation a Texas corporation
By: /s/ Xxxxx Xxxxxxx By: /s/ Xxxxx Xxxxxxx
--------------------------------- ---------------------------------
Its: Authorized Signatory Its: Authorized Signatory
--------------------------------- ---------------------------------
TRI-STATE DELTA CHEMICALS, INC., UAP RECEIVABLES CORPORATION,
a Mississippi corporation a Delaware corporation
By: /s/ Xxxxx Xxxxxxx By: /s/ Xxxxx Xxxxxxx
--------------------------------- ---------------------------------
Its: Authorized Signatory Its: Authorized Signatory
--------------------------------- ---------------------------------
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UAP 22, INC., f/k/a UAP/CAG 22, INC., UAP/GA AG-CHEM, INC.,
a Texas corporation a Georgia corporation
By: /s/ Xxxxx Xxxxxxx By: /s/ Xxxxx Xxxxxxx
--------------------------------- ---------------------------------
Its: Authorized Signatory Its: Authorized Signatory
--------------------------------- ---------------------------------
UAPLP, INC., UNITED AGRI PRODUCTS - FLORIDA,
a Delaware corporation INC., a Florida corporation
By: /s/ Xxxxx Xxxxxxx By: /s/ Xxxxx Xxxxxxx
--------------------------------- ---------------------------------
Its: Authorized Signatory Its: Authorized Signatory
--------------------------------- ---------------------------------
UNITED AGRI PRODUCTS FINANCIAL VERDICON, INC.,
a Delaware corporation
SERVICES, INC., a Colorado corporation
By: /s/ Xxxxx Xxxxxxx By: /s/ Xxxxx Xxxxxxx
--------------------------------- ---------------------------------
Its: Authorized Signatory Its: Authorized Signatory
--------------------------------- ---------------------------------
YVC, INC., UNITED AGRI PRODUCTS CANADA
a Montana corporation INC., a Canadian corporation
By: /s/ Xxxxx Xxxxxxx By: /s/ Xxxxx Xxxxxxx
--------------------------------- ---------------------------------
Its: Authorized Signatory Its: Authorized Signatory
--------------------------------- ---------------------------------
2326396 CANADA, INC.,
a Canadian corporation
By: /s/ Xxxxx Xxxxxxx
---------------------------------
Its: Authorized Signatory
---------------------------------
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EXHIBIT "A"
-----------
Stated fees are for the twelve (12) month fiscal year 2004 period unless
otherwise indicated.
--------------------------------------------------------------------------------
Service Fee
--------------------------------------------------------------------------------
MIS - includes all services required to maintain No additional fee,
systems needed to support the Companies' operations other than actual costs
consistent with past practices. This includes all for addional licensing
services governed by applicable service level fees or interim charges
agreements (SLAs) currently existing between CONAGRA from software vendors
and the Companies
--------------------------------------------------------------------------------
MIS - Network: Services required to maintain systems
connectivity intra- and inter-location. Examples of
Network Services include: Wide Area Network (WAN), $4,547,415/1/
Virtual Private Network (VPN), Internet and Audio
Bridge.
--------------------------------------------------------------------------------
MIS - Operations and Systems: Services required to
support hardware / servers used by the Companies, $221,054/1/
including mainframe, et. al.
--------------------------------------------------------------------------------
MIS - Customer Service: Services required to support
the user community (e.g., call center/help desk). $113,920/1/
--------------------------------------------------------------------------------
MIS - Web Services: Services required to develop and
maintain web-based software and applications requested
by UAP. $73,555/1/
--------------------------------------------------------------------------------
MIS - Data (Equipment, data lines, AGN): Hardware
leases, maintenance, modem lines and Value Added Pass through of direct
Network (VAN) services required to maintain data lines, third-party costs
associated equipment and relevant contracts.
--------------------------------------------------------------------------------
MIS - Microsoft Enterprise Agreement: Services required
to maintain the Microsoft Enterprise Agreement software $406,498/1/
license agreements, and support for applications used
by the Companies.
--------------------------------------------------------------------------------
MIS - EDI Transactions $.00023 per character
--------------------------------------------------------------------------------
------------
/1/ Actual fees will be based upon actual usage using unit costs as defined
in Exhibit "B".
10
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Service Fee
--------------------------------------------------------------------------------
Data Migration - support for separation and migration
of data related to the Companies' operations including
historical accounting data and data developed while
receiving Services under this Agreement. Support Pass through of
includes design and testing of data conversion third-party costs
programs, support during cut-over, and assistance
researching the Companies' questions regarding the
data.
--------------------------------------------------------------------------------
Payroll / Benefits: Activities and systems support for
human resources maintenance, payroll and benefits $816,933/2,3/
processing.
--------------------------------------------------------------------------------
Treasury/Cash Management - provide support to transfer
relevant bank accounts to the Companies, including the No charge
perfecting of liens and the separation of commingled
accounts.
--------------------------------------------------------------------------------
Fixed Assets - activities and systems support for Pass through of direct
accounting for fixed assets. third-party costs
--------------------------------------------------------------------------------
General Ledger - activities and systems support for the
General Ledger system $240,000/2/
--------------------------------------------------------------------------------
Taxes/4/ - activities in support of state, federal and
foreign taxes, and other tax related processing and Pass through of direct
reporting. third-party costs
--------------------------------------------------------------------------------
Long Distance and Cell Phone Usage Pass through of direct
third-party costs
--------------------------------------------------------------------------------
Computer Purchases Pass through of direct
third-party costs
--------------------------------------------------------------------------------
Enterprise Purchasing Pass through of
Vendor charges
--------------------------------------------------------------------------------
Government Affairs $44,000/2/
--------------------------------------------------------------------------------
Travel Agency Pass through of direct
third-party costs
--------------------------------------------------------------------------------
------------
/2/ Represents fixed annual fee for FY04 to be billed on a monthly basis.
/3/ UAP and the Companies to use and pay for this Service as long as
employees of the Companies participate in ConAgra welfare plans and programs
pursuant to Section 10 of the Agreement.
/4/ In no event will any tax-related support or activities include tax
return preparation. The parties' respective contractual obligations in respect
of return preparation shall be governed by Article 13 of the Definitive
Agreement. In the event of a conflict between this Agreement and the Definitive
Agreement, the Definitive Agreement shall control.
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EXHIBIT "B"
-----------
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Networking Services
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
Chargeback Metric - FY03 FY 03 Unit FY 04 Unit % Change Metric - FY04
Cost Cost
1. WAN Type I $5500/mo $5500/mo no change Type I
-----------------------------------------------------------------------------------------------------------------------------
Type II $3775/mo $2500/mo -33.77% Type II
-----------------------------------------------------------------------------------------------------------------------------
Type III $1600/mo $1450/mo -9.38% Type III
-----------------------------------------------------------------------------------------------------------------------------
Type IV $750/mo $750/mo no change Type IV
-----------------------------------------------------------------------------------------------------------------------------
Type V $620/mo $620/mo no change Type V
-----------------------------------------------------------------------------------------------------------------------------
$77/mo $150/mo 94.81% Type VI - 10
-----------------------------------------------------------------------------------------------------------------------------
$77/mo $175/mo 127.27% Type VI - 50
-----------------------------------------------------------------------------------------------------------------------------
$975/mo n/a MCI Managed VPN
-----------------------------------------------------------------------------------------------------------------------------
$10/mo n/a B2B VPN
-----------------------------------------------------------------------------------------------------------------------------
$150/mo n/a ConAgra Vendor B2B
-----------------------------------------------------------------------------------------------------------------------------
$770/mo n/a ConAgra Vendor Owned
-----------------------------------------------------------------------------------------------------------------------------
$150/mo n/a Co-lo B2B
-----------------------------------------------------------------------------------------------------------------------------
n/a Site Severity - See Exhibit "C"
-----------------------------------------------------------------------------------------------------------------------------
n/a Access Size - See Exhibit "C"
-----------------------------------------------------------------------------------------------------------------------------
n/a HA - See Exhibit "C"
-----------------------------------------------------------------------------------------------------------------------------
n/a Sniffer - See Exhibit "C"
-----------------------------------------------------------------------------------------------------------------------------
n/a Port Size - See Exhibit "C"
-----------------------------------------------------------------------------------------------------------------------------
n/a PVC - See Exhibit "C"
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
2. VPN per VPN user $10/mo $10/mo no change per VPN user
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
3. Internet per Internet user $5.00/mo $5.00/mo no change per Internet user
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
4. Audio
Bridge per port $2 $2 no change per port
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
Operations Services
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
Chargeback Metric - FY03 FY 03 Unit FY 04 Unit % Change Metric - FY04
Cost Cost
-----------------------------------------------------------------------------------------------------------------------------
1. Mainframe MIP - Prime Time $0.0552 $0.0552 no change MIP - Prime Time
-----------------------------------------------------------------------------------------------------------------------------
MIP - Non Prime Time $0.0246 $0.0239 -2.68% MIP - Non Prime Time
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
2. UNIX UNIX Basic - per SPECint/mo $43.78 $43.78 no change UNIX Basic - per SPECint/mo
-----------------------------------------------------------------------------------------------------------------------------
Open Systems UNIX High Avail - per SPECint/mo $67.32 $67.32 no change UNIX High Avail - per SPECint/mo
-----------------------------------------------------------------------------------------------------------------------------
UNIX Sun E10K - per SPECint/mo $83.41 $83.41 no change UNIX Sun E10K - per SPECint/mo
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
3. NT NT Basic - per SPECint/mo $13.12 $13.12 no change NT Basic - per SPECint/mo
-----------------------------------------------------------------------------------------------------------------------------
Open Systems NT High Avail - per SPECint/mo $20.35 $20.35 no change NT High Avail - per SPECint/mo
-----------------------------------------------------------------------------------------------------------------------------
NT Citrix - per SPECint/mo $36.43 $36.43 no change NT Citrix - per SPECint/mo
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
4. AS/400 n/a n/a $20.61/mo n/a Platform per CPW's
-----------------------------------------------------------------------------------------------------------------------------
$6.09/mo n/a Service per CPW's
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
5. Storage Enterprise Tape - Gb/mo $1.88 $1.69 -10.11% Enterprise Tape - Gb/mo
-----------------------------------------------------------------------------------------------------------------------------
Departmental Tape - Gb/mo $0.65 $0.59 -9.23% Departmental Tape - Gb/mo
-----------------------------------------------------------------------------------------------------------------------------
Enterprise Disk - Gb/mo $15.85 $14.27 -9.97% Enterprise Disk - Gb/mo
-----------------------------------------------------------------------------------------------------------------------------
12
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Operations Services
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
Chargeback Metric - FY03 FY 03 Unit FY 04 Unit % Change Metric - FY04
Cost Cost
-----------------------------------------------------------------------------------------------------------------------------
Departmental Disk - Gb/mo $6.96 $6.26 -10.06% Departmental Disk - Gb/mo
-----------------------------------------------------------------------------------------------------------------------------
Network Attached Storage (NAS)-
Gb/mo $11.52 $10.37 -9.98% Network Attached Storage (NAS) - Gb/mo
-----------------------------------------------------------------------------------------------------------------------------
Business Cont. Volume (BCV)-
Gb/mo $9.24 $8.32 -9.96% Business Cont. Volume (BCV) - Gb/mo
-----------------------------------------------------------------------------------------------------------------------------
AS400 - Gb/mo 9.46 n/a AS400
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
6. Co-
Location n/a n/a See Exhibit "D"
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
Customer Services
-----------------------------------------------------------------------------------------------------------------------------
Chargeback Metric - FY03 FY 03 Unit FY 04 Unit % Change Metric - FY04
Cost Cost
-----------------------------------------------------------------------------------------------------------------------------
1. Helpdesk Case Type A $2.00 $2.00 no change Case Type A
-----------------------------------------------------------------------------------------------------------------------------
Case Type B $12.00 $12.00 no change Case Type B
-----------------------------------------------------------------------------------------------------------------------------
Case Type C $20.00 $20.00 no change Case Type C
-----------------------------------------------------------------------------------------------------------------------------
$250.00 n/a Ad Hoc Reporting - per report
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
2. Access Per ID Access Activity $6.00 $6.00 no change Per ID Access Activity
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
Web Services
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
Chargeback Metric - FY03 FY 03 Unit FY 04 Unit % Change Metric - FY04
Cost Cost
-----------------------------------------------------------------------------------------------------------------------------
1.Web design Per programmer hour $40.00 $40.00 no change Per programmer hour
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
Microsoft Enterprise Agreement
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
Chargeback Metric - FY03 FY 03 Unit FY 04 Unit % Change Metric - FY04
Cost Cost
-----------------------------------------------------------------------------------------------------------------------------
1. Microsoft Per base license $160.71 $160.71 no change Per base license
Enterprise
Agreement
-----------------------------------------------------------------------------------------------------------------------------
13
