EX-10.7 8 y42891a2exv10w7.htm EX-10.7: THIRD AMENDMENT TO THE AGREEMENT WITH CROWN CORK & SEAL USA, INC. EX-10.7
 

Exhibit 10.7
April 4, 2007
     
AMENDMENT #3
  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 Dr Pepper/Seven Up Bottling Group, Inc. (“Dr Pepper/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 LOE End
 
   
          12-ounce can bodies
  $*
          Aluminum adjustment
  $*
 
   
          Total can body price
  $*
 
   
          202 dia. LOE ends
  $*
          Aluminum adjustment
  $*
 
   
          Total LOE end price
  $*
 
   
          Total 12-oz Container
  $*
 
     
* Confidential treatment has been requested. The redacted material has been separately filed with the Commission.


 

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Sacramento, CA:   8-ounce cans
    with LOE 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 “LOE” 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:
           
 
           
 
           
CADBURY SCHWEPPES BOTTLING GROUP, INC     .  
 
           
By:
  /s/        
 
           
 
Title: