BOTTLE SUPPLY AGREEMENT
This
Agreement is made this 15th day of
February 2008 by and between Xxxxxxxxx-Xxxxxxxxx, Inc. (“Seller”) and Skinny
Water (“Buyer”). In consideration of the mutual promises herein contained and
intending to be legally bound, both parties agree as follows:
1. REQUIREMENTS
1.01
Sale of Products.
Upon the terms and conditions hereinafter set forth, during the term of
this Agreement, Seller agrees to supply and arrange to deliver to Buyer, and
Buyer agrees to purchase, accept from Seller, and pay for, 100% of its
requirements for bottles (collectively, the “Bottles”), of the type, size and
specifications set forth on Schedule “A”
hereto(the “Specifications”), which may be changed from time to time upon
written agreement signed by the Buyer, Seller and approved by the Manufacturer
(as defined in Section 1.02 below)
1.02
Manufacturer. The
primary Manufacturer of the Bottles to be supplied hereunder shall be Ball
Plastic Container Corp. (the “Manufacturer”). Buyer may not, during the term of
this Agreement, attempt to contract directly with the Manufacturer for the
supply of any bottles.
1.03
Purchase Price.
The price to be paid by Buyer for each type of Bottle shall be the price
per 1,000 Bottles as set forth in Schedule “B” hereto.
Except for increases or decrease as provided in Schedule “B” and/or Sections
1.04 and/or 1.05 below, the purchase price for each type of Bottle shall remain
firm throughout the term of this Agreement unless Seller and Buyer agree
otherwise in writing.
1.04
Resin Price Adjustments.
Seller will make adjustments to the price for changes in PET resin price
as and when, and only to the extent that, Manufacturer makes such pricing
changes. Adjustments based on changes in PET resin pricing will be made on a
monthly basis (i so made by Manufacturer) and continue through the Term based on
announced changes in PET resin pricing. Changes will take effect on the date
specified by Manufacturer to Seller. For each $0.01 per pound change in resin
price, the Bottle price per thousand will be adjusted by multiplying the price
change per pound of resin times [****] in the Bottle. The formula
is:
Resin
Price Change x [****] = Price increase per thousand
Per
(Pound)
Bottles
1.05
Annual Non-Resin
Producer Price Index Adjustment (PPI). The base price for Bottles may be
increased for non-resin costs on January 1st of each
year of the agreement based on the Producer Price Index – Industrial Commodities
(“PPI”) determined by comparing the arithmetical average of the monthly index,
for the [****] periods beginning on October 1 through September 30.
For
example:
|
·
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Base
Price is [****]
|
|
·
|
If
the monthly Industrial Commodities-PPI average for October 1, 20x1 through
September 30, 20x2 is [****] and the monthly Industrial Commodities-PPI
average for October 1, 20x2 through September 30, 20x3 is [****], the
change in the PPI is [****].
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[*CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH
PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [****], HAS
BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]
|
·
|
Industrial
Commodities PPI change = [****]
|
|
·
|
The
non-resin portion change equals
[****]
|
|
·
|
New
Base Price is [****]
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2. TERM
2.01
Term. This
Agreement shall commence on the day of first shipment and shall continue for a
period of 36 month, unless extended pursuant to Section 2.02.
2.02
Extension of
Term. This Agreement term shall be extended for additional 24 month terms
beyond the term set forth in Section 2.01 unless either party gives written
notice to the other at least 90 days prior to the end of the original term or
any 24 month extension thereof
2.03
First Right of
Refusal. At the end of Term an Extension of Term, Buyer grants Seller
[****] days to meet a bona fide written offer on a potential Supplier’s
letterhead (the “Offer”). Seller will have the opportunity to match price and
quality contained in Offer or [****]. If at the conclusion of the [****] day
period. Seller matches Offer or [****] Agreement shall continue unchanged
for an added 24 months. If Seller does not match Offer or meet Buyer’s needs,
Buyer shall no longer be bound to Seller
3. SERVICE
3.01
Quantity of
Bottles. Subject to the provisions of Section 3.02, during the term this
Agreement Buyer shall purchase a minimum of 100% of Bottles (the “Minimum
Quantity”) from Seller.
3.02
Forecast. Upon
the signing of this Agreement and prior to the beginning of each calendar year,
Buyer shall provide to Seller a written annual forecast for anticipated Bottles,
with expected seasonality, broken down by month. These annual forecasts are
subject to changes, which shall be contained in 90 day rolling forecasts
provided by Buyer to Seller monthly in writing at least 60 days prior to the
commencement of any such 90 day rolling forecast period. The parties acknowledge
and agree that these rolling forecasts may allow for seasonal fluctuations and
that Buyer will use its best efforts to accurately project such forecasts.
Seller will use commercially reasonable efforts to provide annual and rolling
forecasted quantities. If supplying quantities in excess of either forecasted
quantities would force the Seller to incur additional costs (i.e. freight for
out of region bottle shipments) these projected initial costs will be reviewed
with Buyer. The Buyer will then have the option of accepting these additional
costs or sourcing Bottles that Seller cannot supply from an alternate
Vendor.
3.03
Ordering. Buyer
may submit actual orders for Bottles by purchase order; provided that no term or
condition set forth on any such purchase order other than quantity and requested
delivery date shall be applicable to any Bottles so ordered.
[*CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH
PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [****], HAS
BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]
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4. PAYMENT
4.01
Payment Terms.
Net 30 days from date of invoice. If Buyer fails to make any payment in
accordance with the terms of this Agreement, Seller may, at its sole option and
in addition to any other rights it may have, defer or decline to make any
shipments hereunder except upon receipt of security satisfactory to Seller or
cash payment in advance of delivery. Notwithstanding the foregoing, if Buyer’s
failure to make any payment is due to a good faith dispute regarding a specific
order (for example in terms of quality, quantity, or failure to meet
specifications or warranties) and Buyer makes payment for all orders not in
dispute, Seller must continue to make shipments without requiring additional
security, assurances, or payments in advance.
4.02
Interest.
Interest on overdue amounts shall be charged at Wall Street Journal “prime rate
of interest” plus [****] per annum. If any payment, including interest thereon,
is not made within any specified time period, Seller shall have the right to
change the payment terms and to refuse to supply any additional Bottles until
such time as any overdue amount is paid in full. If any payment, including all
interest thereon, is not made within ninety (90) days after it is due in
accordance with this Section, Seller shall have the right to terminate this
Agreement by sending a written termination notice to the Buyer. Notwithstanding
the termination of this Agreement in accordance with this Section, Buyer shall
not be relieved of its obligations and liabilities hereunder including, without
limitation, Buyer’s obligation to pay all overdue amounts.
4.03
Collection Costs.
In the event that Seller incurs collection costs in connection with any
overdue account, Buyer shall be responsible for all reasonable collection costs
(including without limitation attorney’s fees).
4.04
Storage Charges.
Seller agrees to store Bottles for up to [****] after the later the date of
manufacture or order without charge to Buyer. Storage charges of [****] (one
time in and out fee) and [****]/month along with the shuttle fee to and from the
warehouse will have the right to xxxx as of the first day of the month following
the [****] period for all Bottles held in inventory in excess of [****] from the
date of manufacture. After six months of storage, Seller will have the right to
invoice Buyer for the sales price for all Bottles stored for six months by
Seller and the Bottles will be either shipped to a destination indicated by
Buyer or destroyed.
5. DELIVERY
5.01
Packaging. All
Bottles will be bulk packed.
5.02
Delivery. All
deliveries will be F.O.B. the Manufacturer’s facility. Buyer shall pay all
shipping costs from that point. The responsibility of Seller and the
Manufacturer shall cease and Buyer shall assume all risk of loss upon
Manufacturer’s delivery to and receipt by the common carrier
6. DUNNAGE
6.01
Dunnage. All
costs for pallets, frames and tier sheets shall be memo billed to Buyer and
rectified on a quarterly basis. Buyer shall be responsible for the replacement
of those pallets, frames and tier sheets lost or damaged due to Buyer’s
negligence, and for the cost of transportation for all dunnage returns. Buyer is
also required to supply Seller with copies of all Xxxx of Ladings for dunnage
returns, via fax or e-mail.
[*CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH
PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [****], HAS
BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]
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7. WARRANTIES
7.01 Warranty. Seller warrants
that, at that time the Bottles are delivered to Buyer, the Bottles:
(a) will
conform to the applicable Specifications;
(b) have
been produced in compliance with all applicable laws, including without
limitation the requirements of the Fair Labor Standards Act, as
amended;
(c) have
been produced free from defects in manufacture.
(d) shall,
upon payment in full of the applicable purchase price, be conveyed with good
title and free of any lien or encumbrance; and
(e) (i)
are not adulterated within the meaning of the U.S. Federal Food. Drug and
Cosmetic Act, as amended (the “U.S. Act”), its attendant regulations or within
the meaning of applicable U.S. or State laws or municipal ordinances in which
the definition of adulteration is substantially the same as that contained in
the U.S. Act; and (ii) do not constitute an article which may not due to
adulteration, under the provisions of the U.S. Act, be introduced into
interstate commerce.
7.02 Limitations. THE ABOVE EXPRESS
WARRANTIES SHALL BE IN LIEU OF ALL OTHER WARRANTIES OR REPRESENTATIONS EXPRESS
OR IMPLIED. INCLUDING, BUT NOT LIMITED TO, WARRANTIES OF MERCHANTABILITY AND
FITNESS FOR A PARTICULAR PUROSE, AND THERE ARE NO WARRANTIES EXCEPT AS EXPRESSLY
SET FORTH IN THIS AGREEMENT.
7.03 Disclaimers. Seller
specifically disclaims any warranty or other liability for:
(a) Foreign
substances of any kind in the goods that have been introduced by Buyer, its
subcontractors, or a party other than Seller or one directed by Seller to handle
Bottles;
(b)
Bottles that have not been (i) thoroughly cleaned immediately prior to filling,
(ii) filled under sanitary conditions and in accordance with good manufacturing
practices as required by the U.S. Food and Drug Administration and (iii)
suitably sealed immediately after filling with the appropriate
closure;
(c) Bottles
that have been (i) exposed to any water (warmer, rinser, etc.) with an
alkalinity in excess of 50 ppm and or to line lubes and makeup waters with a
combined alkalinity in excess of 100 parts per million; (ii) exposed to warmer
temperatures in excess of 110°F; (iii) exposed to temperatures in excess of
100°F and or to direct sunlight during transportation or storage; or (iv) abused
or misused by Buyer or Customer; and
(d) Flavor,
odor and color of the filled beverage unless, in any event; shown to be due to a
failure of a Bottle to comply with the warranties set above.
7.04 Notification. Buyer must
notify Seller of any breach of warranty claims without undue delay. Seller shall
not be liable for any such claims unless Seller receives notice of the claim
within 180 days after the date of delivery of the allegedly defective product.
Failure to make a claim within such period shall constitute a complete and
irrevocable waiver of such claim.
[*CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH
PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLCED WITH ASTERISKS [****], HAS
BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION.]
4
7.05 Preservation. Buyer must
preserve Bottles and other evidence in its possession or control that are
reasonably related to a breach of warranty claim and provide Seller the
opportunity to inspect, test and sample such Bottles and other evidence prior to
destruction or alteration. Failure to comply with this provision shall
constitute a waiver of the warranty claim.
7.06 Exclusive
remedy. As Buyer’s exclusive remedy for a breach of warranty. Seller
shall, at Buyer’s option, replace any defective Bottles or credit Buyer for
Buyer’s total out of pocket cost (including without limitation filling, raw
materials, packaging materials and freight) thereof including, the cost of
inspecting, sorting, reworking, and scrapping the defective Bottles Seller may
rework and/or scrap any defective Bottles, or authorize Buyer to do so, if
Seller agrees (if Buyer so requests).
7.07 Domestic
Use. The above warranties apply only to Bottles manufactured for domestic
use in the United States and Canada. Exporting filled product in Bottles for
domestic use voids all warranties and Seller shall not be liable for any
damages.
8. INDEMNIFICATION
AND INSURANCE
8.01 General.
Seller agrees to protect, defend, indemnify and hold harmless Buyer from
all liabilities, claims, actions, losses, costs and expenses, including
attorneys’ fees and court costs (“Losses”) incurred by Buyer arising from a
claim by a third party asserted against Buyer for bodily injury, death or
property damage to the extent that such bodily injury, death or property damage
is due to a defect in the design or manufacture of the Bottles or other breach
of warranty by Seller in respect of Bottles as delivered to Buyer. Buyer agrees
to protect, defend, indemnify and hold harmless Seller from all Losses incurred
by Seller arising from a claim by a third party asserted against Seller for
bodily injury, death or property damage to the extent such bodily injury, death
or property damage is due to Buyer’s negligence or willful
misconduct.
8.02 Intellectual Property. Seller
warrants to Buyer that Buyer’s purchase of the Bottles and the use thereof in
the form furnished by Seller (but excluding any labels) will not in itself
infringe any valid United States patent, copyright or trademark. If a claim of
any such patent infringement is asserted by a third party against Buyer and
provided that Seller is promptly notified thereof and offered the opportunity to
assume the complete defense, Seller as its only obligation hereunder agrees to
defend, indemnify and hold Buyer harmless from and against all judgments,
decrees, damages, and out-of-pocket costs and expenses incurred by or imposed
against Buyer as a result of such actual or alleged infringement. Upon the
institution of any suit or action alleging infringement against Buyer, Seller
may, at its option, (i) pay the royalties claimed; (ii) furnish non-infringing
Bottles provided they are reasonably acceptable to Buyer; (iii) terminate this
Agreement upon thirty (30) days written notice provided that such termination
shall not relieve Seller of any obligation accrued hereunder prior to the date
of termination, including deliveries of Bottles on order by Seller; or (iv)
continue to supply the allegedly infringing Bottles provided that in such event,
Seller shall reimburse Buyer for any loss sustained by Buyer on account of
infringement if in such suit or action it is held that the purchase or use of
such Bottles did infringe a valid United States patent, copyright or trademark
Notwithstanding the above, if the Bottles were made in accordance with
materials, designs or specifications furnished or designated by Buyer, Buyer
shall indemnify Seller against any judgment for damages and costs which may be
rendered against Seller in any suit brought on account of alleged infringement
of any United States patent, copyright or trademark by such Bottles and any
labels thereon,
[*CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH
PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLCED WITH ASTERISKS [****], HAS
BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION.]
5
8.03 Insurance. Seller represents
and warrants that it currently has and will continue to maintain in full force
and effect for the duration of this Agreement commercially reasonable general
liability and product liability insurance. Seller shall supply a new insurance
certificate each year to Buyer upon request.
9. LIMITATIONS
9.01 Force Majeure. If either party
is unable to perform its obligations under this Agreement (other than the
payment of monies owed), or if the Manufacturer is unable to perform its
manufacturing obligations as contemplated herein as a consequence of a delay or
failure from any cause or event beyond the control of such party, including but
not limited to war, riots acts of God or public enemy, fire, explosion, flood,
earthquake, strikes, lockouts or other labor disturbance, embargo, actions or
any governmental authority, such party (and Seller, if the party unable to
perform is the Manufacturer) shall be excused from the performance of such
obligations for the period of and to the extent of any such cause or event. On
the cessation of any event of force majeure as defined above, the disabled party
shall notify the other party of such cessation or termination. If such cessation
persists for a period of time greater than three months, this Agreement will
terminate upon written notice from either party to the other party.
9.02 SELLER’S LIABILITY. SELLER
WILL HAVE NO LIABILITY FOR ANY BUSINESS LOSSES OF BUYER, INCLUDING, WITHOUT
LIMITATION, LOSS OF REVENUE, PROFIT OR GOODWILL, OR FOR ANY OTHER INDIRECT,
INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES WHATSOEVER, WHETHER ARISING OUT OF
CONTRACT, TORT OR OTHERWISE. IN ANY EVENT SELLER’S MAXIMUM MONETARY LIABILITY IN
CONNECTION WITH THIS AGREEMENT WILL BE THE AMOUNTS PAID TO SELLER
HEREUNDER.
10. CONFIDENTIALITY
10.01 Confidentiality.
Each party shall use reasonable efforts to cause their respective
employees, agents and other representatives to hold, in confidence, all
Confidential Information (as hereinafter defined), and the parties shall use
their best efforts to ensure that any other person having access to the
Confidential Information shall not disclose the same to any person except in
connection with this Agreement and otherwise as may be reasonably necessary to
carry out the provisions of this Agreement and the transactions contemplated
hereby, or to comply with applicable law. “Confidential Information” means all
information of any kind (including, without limitation, sales and promotional
results) obtained directly or indirectly from either party’s business.
Confidential Information shall not include any information which (i) is
generally available to the public as of the date of this Agreement, or (ii)
becomes generally available to the public after the date of this Agreement, or
(iii) is or becomes known to either party from sources outside of the other
party, provided that such information did not result, directly or indirectly,
from any act, omission or fault of either of the parties to this agreement or
any of their agents with respect to such information.
[*CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH
PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLCED WITH ASTERISKS [****], HAS
BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION.]
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11. ADDITIONAL
PROVISIONS
11.01 Assignment. This Agreement and
all of the provisions hereof shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns. Neither party
shall assign this Agreement without the prior written consent of the other
party, such consent not to be unreasonably withheld.
11.02 Notices. Any notice or written
communication regarding this Agreement to Seller, shall be sent by certified
mail, return receipt requested to the following address or to such other
location(s) as the Seller subsequently directs:
Xxxxxxxxx-Xxxxxxxxx,
Inc.
Attention:
President
000 Xxxxx
Xxxxx Xxxx
Xxxx xx
Xxxxxxx, XX 00000,
Any such
notices to Buyer shall be sent to the following address or to such other
location(s) as the Buyer shall subsequently direct:
Skinny
Water
Attention:
CEO
0 Xxxx
Xxxxx Xxxx, Xxxxx 000
Xxxx
Xxxxxx, XX 00000,
Notwithstanding
the foregoing, the parties hereto agree that each party hereto shall be entitled
to send purchase orders or invoices to the other via email or facsimile. Any
email or facsimile shall be deemed received by the recipient upon transmission
by the sending party. All notice by mail shall be deemed to have been received
three business days after mailing.
11.03 Entire Understanding. This
Agreement contains the entire understanding between the parties with respect to
the subject matter hereof, superseding all prior written oral understandings or
agreements. This Agreement may only be amended in writing signed by both
parties.
11.04 No Waiver of Rights. This
failure of either party to exercise any right hereunder or to insist upon the
performance of any of the terms or conditions of this Agreement shall not be
construed
as a waiver of such right or a relinquishment of the right to insist upon future
performance
of any such term or condition.
11.05 Further Assurances. The
parties hereto shall, with reasonable diligence, do all such things and provide
all such reasonable assurances as may be required to consummate the transactions
contemplated hereby, and each party shall provide such further documents or
instruments required by any other party as may be reasonably necessary or
desirable to effect the purpose of this Agreement and carry out its
provisions.
11.06 Severability. If any provision
of this Agreement shall be held invalid or unenforceable, such invalidity or
unenforceability shall attach only to such provision and shall not in any manner
affect any other jurisdictions or affect any other provision of this
Agreement.
11.07 Time of Essence. Time shall be
of the essence hereof.
[*CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH
PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [****], HAS
BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]
7
11.08 Governing Law. This Agreement
shall be governed by and construed in accordance with the laws of the
Commonwealth of Pennsylvania, without giving effect to principles of conflicts
of law and both parties consent to the exclusive jurisdiction of the Court of
Common Pleas, Xxxxxxxxxx County or the U.S. District Court for the Eastern
District of PA.
11.09 Counterparts. This Agreement
may be signed in counterparts, each of which counterpart so executed shall be
deemed to be an original and such counterparts together shall constitute a
single instrument bearing the date first written above. True and correct copies
of signed originals hereof which are transmitted by facsimile communication may,
in the absence of original signed copies, be considered legally binding and
enforceable documents.
IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be execute on
the day and year first above written.
XXXXXXXXX-XXXXXXXXX,
INC.
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By:
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/s/
Xxxxxxxx X. Xxxxxxxxx
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Date:
2/18/08
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Xxxxxxxx
X. Xxxxxxxxx, President
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SKINNY
WATER
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By:
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/s/
XXXXXX X. XxXXXXXX
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Date:
2/15/08
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XXXXXX
X. XxXXXXXX, CEO
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[*CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH
PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [****], HAS
BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]
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SCHEDULE
“A”
SPECIFICATIONS
Size:
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18oz
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Weight:
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40.5
grams
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Color:
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Clear
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Design:
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“Water
Plus”
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[*CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH
PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [****], HAS
BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]
SCHEDULE
“B”
PRICING
Price is
[****] per Thousand Bottles.
An
up-charge of [****] per thousand will be added for UV additive.
Pricing
is based on minimum runs of [****] with [****] to take or storage charges per
Section 4.04 can be charged.
Pricing
is F.O.B Manufacturer’s facility as of 2/1/2008.
Pricing
is based on resin costs as of 2/1/2008.
Prices
can change based on factors identified in Section 1.04.
[*CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH
PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [****], HAS
BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]
xxxxxxxxx
Honickman
BOTTLE SUPPLY AGREEMENT
ADDENDUM I
The
following is “Addendum I” to the Bottle Supply Agreement dated the 15th
day of
February 2008 between Xxxxxxxxx-Honickiman, Inc. (“Seller”) and Skinny
Nutritional Corp (“Buyer”) (the
“Agreement”).
The
purpose of “Addendum I” is to identify agreed upon changes in Term, Sale of
Product, Quantity of Bottles, Manufacturer, Bottle Specifications, Pricing,
Change Parts and Future Bottle Requirement Addendums from the original Bottle
Supply Agreement. All other terms and conditions of the Agreement will remain as
previously agreed.
1.
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Change
to Section 2.01 in Agreement - Term. The term of the
agreement will extend an additional 48
months.
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2.
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Replacement
of Section 1.01 in Agreement - Sale of Products. Upon
the terms and conditions hereinafter set forth, during the term of this
Agreement, Seller agrees to supply and arrange to deliver to Buyer, and
Buyer agrees to purchase, accept from Seller, and pay for 100%, of 100% of
its bottle requirements (collectively, the “Bottles”), of the types, sizes
and specifications set forth currently on Schedule “A”
and any future Bottles Buyer needs in which specifications are identified
within the Term or an Extension of Term (the “Specifications”), which may
be changed from time to time upon written agreement signed by the Buyer,
Seller and approved by the Manufacturer (as defined in Section 1.02 of
Agreement).
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3.
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Replacement
of Section 3.01 in Agreement - Quantity of Bottles.
Subject to the provisions of Section 3.02, during the term of this
Agreement Buyer shall purchase a minimum of 100% of all bottle needs (the
“Minimum Quantity”) from Seller, so long as Seller is able to meet Buyer’s
required needs.
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4.
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Replacement
of Section 1.02 in Agreement - Manufacturer. The
primary Manufacturer of the Bottles to be supplied hereunder may vary
based on the specifications of each Bottle requested (the “Manufacturer”).
Buyer may not, during the term of this Agreement, attempt to contract
directly with a Manufacturer for a Bottle in which that Manufacturer is
actively providing.
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5.
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Replacement of
“Schedule A” in Agreement - Current
Bottle Specifications.
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Size
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l6oz
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Weight
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36.5
grams
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Color
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Clear
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Manufacturer
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Amcor
PET North America
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Design
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Heat
Set Stock
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[*CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH
PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [****], HAS
BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]
6.
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Replacement
of “Schedule B” in Agreement - Current Bottle
Pricing.
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Price is
[****] per thousand Bottles
An
up-charge of [****] per thousand will be added for UV additive.
Pricing
if F.O.B. Manufacturer’s facility as of 8/1/2008.
Pricing
is based on resin costs as of 8/1/2008.
A
surcharge for East Coast shipments/deliveries is [****] per thousand and [****]
per thousand for West Coast shipments/deliveries.
Pricing,
surcharges, and up-charges may change based on factors identified in the
February 15th
Agreement.
7.
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Added
Section - Change Parts. The Buyer
acknowledges that the Seller has paid for 2 labelers, filler (linker), and
tray maker and packer (the “Change Parts”) at a cost of [****] on behalf
of Buyer. Buyer will reimburse Seller the [****] (interest free) back to
Seller in [****] installments of [****] beginning September 1st
2008, and ending with the last payment being received by Seller on August
1st
2009.
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8.
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Added
Section - Future Bottle
Requirements. All Future Bottle Requirements by Buyer will have the
Specifications, Pricing, Term and other varied information identified on
future Addendums when needed.
|
9.
|
Added
Section - [****]. Based on [****] in the previous contract year
(which runs from February 15, 20x1 to February 14, 20x2), and the [****],
Seller will [****][****]. Such [****][****] prior to March 15th
following the [****]. [****] will be documented and communicated prior to
the upcoming year. The format of the [****] will be as
follows:
|
[****]
[****]
[****]
[****]
[****]
Agreed to
on the date written below:
XXXXXXXXX-XXXXXXXXX,
INC.
|
||||
By:
|
/s/ Xxxxxxxx X. Xxxxxxxxx |
By:
|
/s/ Xxxxxx X. XxXxxxxx | |
Xxxxxxxx
X. Xxxxxxxxx, President
|
Xxxxxx
X. XxXxxxxx, CEO
|
|||
Date:
|
9-14-08
|
Date:
|
9/10/08
|
[*CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH
PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [****], HAS
BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]
BOTTLE SUPPLY AGREEMENT
ADDENDUM II
The
following is “Addendum II” to the Bottle Supply Agreement dated the 15th day of
February 2008 between Xxxxxxxxx-Xxxxxxxxx, Inc. (“Seller”) and Skinny
Nutritional Corp (“Buyer”) (the “Agreement”).
The
purpose of “Addendum II” is to identify agreed upon changed associated to adding
a [****] Section and replacing to the original Bottle Supply Agreement. All
other terms and conditions of the Agreement and Addendum I will remain as
previously agreed.
1.
|
Added
Section – [****]. Based on the [****] [****] in the previous
contract year which runs from February 17, 20x1 to February 16, 20x2
(“Annum”). First Annum begins 2/17/09 and ends 2/16/10. Such [****] prior
to March 17th
following the [****] each Annum of the Agreement. The format of the [****]
will be as follows:
|
[****]
[****]
[****]
[****]
2.
|
Replacement
of “Schedule B” in Agreement and Section 6 of Addendum I - Current Bottle
Pricing.
|
Price is
[****] per thousand Bottles.
An
up-charge of [****] per thousand will be added for UV additive.
Pricing
is F.O.B. Manufacturer’s facility as of 2/1/2009.
Pricing
is based on resin costs as of 2/1/2009.
Pricing,
surcharges, and up-charges may change based on factors identified in the
February 15th
Agreement.
Prices
can change based on factors identified in Section 1.04 of
Agreement.
Agreed to
on the date written below:
XXXXXXXXX-
XXXXXXXXX, INC.
|
||||
By:
|
/s/ Xxxxxxxx X. Xxxxxxxxx |
By:
|
/s/
Xxxxxx X. XxXxxxxx
|
|
Xxxxxxxx
X. Xxxxxxxxx, President
|
Xxxxxx
X. XxXxxxxx, CFO
|
|||
Date:_____________
|
Date:_____________
|
[*CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH
PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [****], HAS
BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]