NORTH AMERICAN COFFEE PARTNERSHIP DISTRIBUTION AGREEMENTDistribution Agreement |
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PEPSI BOTTLING GROUP INC | Bottling Group, LLC | NORTH AMERICAN COFFEE PARTNERSHIP | Starbucks Corporation. RealDealDocs™ contains millions of easily searchable legal documents and clauses from top law firms. Search for free - click here. |
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Exhibit 10.3
NORTH AMERICAN COFFEE PARTNERSHIP
DISTRIBUTION AGREEMENT
AGREEMENT made and entered as of this first day of January, 2002 between the North American Coffee Partnership, a partnership organized under the laws of the State of New York, with its general offices in Purchase, New York (hereinafter called the “Partnership” ), and Bottling Group, LLC d/b/a The Pepsi Bottling Group (hereinafter called “Distributor” ).
WITNESSETH :
WHEREAS, the Partnership has entered into a Trademark License Agreement with Starbucks Corporation, a corporation organized under the laws of the State of Washington with general offices in Seattle, Washington (“Starbucks”) pursuant to which the Partnership is authorized to distribute ready-to-drink dairy based coffee beverages and that certain ready-to-drink non-carbonated coffee-free dairy based strawberry blend beverage under the trademark “Starbucks” in the varieties and flavors enumerated in Exhibit A hereto (as may be amended from time to time as provided herein, the “Products” ); and
WHEREAS, Distributor desires to sell and distribute the Products in accordance with the terms and conditions set forth herein; and
WHEREAS, Partnership desires to appoint Distributor to sell and distribute the Products and to utilize the Trademarks (as defined below) in accordance with the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the mutual covenants contained herein, Partnership and Distributor hereby agree as follows:
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Definitions. As used herein, the following terms shall have the enumerated meanings; and such meanings shall be equally applicable to both the singular and plural forms of the terms defined. |
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(a) |
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“ Case ” means a raw case of the Product, regardless of the quantity and package size of the Product contained in such case, as determined by Partnership from time to time. |
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(b) |
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“ Packages ” means all packages and/or containers of the Products that the Partnership in its discretion manufactures and/or authorizes third parties to manufacture for distribution during the Term. |
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(c) |
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“ Proprietary Marks ” means the Trademarks and the Trade Dress. |
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(d) |
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“ Territory ” means the geographic area described in the Distributor’s Master Bottling Agreement for the bottling of regular Pepsi-Cola dated March 29, 1999 (“Master Bottling Agreement”), as such territory may be amended or modified from time to time, provided, however, that the Territory shall exclude all retail coffee outlets owned, controlled or managed by Starbucks Corporation or its subsidiaries or affiliates. |
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(e) |
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“ Trade Dress ” means all packaging designs, graphics, layout, coloration, and configurations, and all of the foregoing in relation to each other, used in connection with the Products or developed for use in connection with the Products, either prior to the execution of this Agreement or while this Agreement is in effect. |
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(f) |
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“ Trademarks ” means those trademarks set forth in Exhibit B hereto, as may be amended from time to time. |
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Authorization . Subject to Partnership’s rights or retained authority as herein described and on the terms and conditions herein contained, Partnership hereby grants to Distributor the exclusive right, for and only in the Territory, to sell and distribute, but not to produce, the Products in the Packages. No right, license or authority is granted herein for Distributor to manufacture or produce the Products anywhere, nor to distribute or sell the Products, directly or indirectly, outside the Territory, nor to sell or distribute the Products to any party for ultimate resale to consumers outside the Territory. |
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In no way shall the addition of ready- to-drink non-carbonated coffee-free dairy based strawberry blend beverage identified on Exhibit A hereto be misinterpreted so as to include any other coffee-free beverage under the definition of Products, now or in the future, except as may otherwise be provided in a separate amendment to be entered into by the parties. |
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Term . This Agreement shall commence as of the date set forth above and shall continue until September 6, 2069, unless it is earlier terminated pursuant to the provisions of this Agreement. If the Trademark License Agreement between Starbucks and the Partnership is extended beyond September 6, 2069, and if this Agreement remains in fun force and effect until such date, the term of this Agreement will be automatically extended on the same terms and conditions for a period equal to the extension of the Trademark License Agreement. |
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This Agreement shall automatically terminate without the necessity of any further action on the part of the Partnership or the Distributor upon termination of the Distributor’s Master Bottling Agreement or upon termination at any time of the Trademark License Agreement between Starbucks and the Partnership. In the event that the Partnership, in its absolute and unqualified discretion, should decide to discontinue the manufacture, sale and distribution of the Products, the Partnership may, upon six (6) months prior written notice to the Distributor, terminate this Agreement, and from and after the termination date as specified in said notice, this Agreement shall be void and of no further force and effect, without any liability by either party to the other arising out of such termination. |
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Sale and Purchase of Products . Distributor shall purchase all of its requirements for the Products from Partnership or from parties identified in writing by Partnership as Partnership’s authorized sellers of the Products. The Products will be sold by Partnership to Distributor at the prices and in accordance with the terms of shipment determined by Partnership from time to time. |
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The terms of payment for all sales of the Products to Distributor shall be net thirty (30) days after the date of invoice, provided, however, that payment may be required prior to shipment if Partnership deems itself insecure in respect of Distributor’s ability to pay for the Products ordered. All sums due or payable by Distributor to Partnership shall be paid on or before the due date without any reduction or diminishment on account of claims, set-offs, counterclaims or the like. |
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Distributor shall pay all fees, excise, use, sales, or other taxes that may be due or imposed upon the sale of the Products by Partnership to Distributor or otherwise in connection with Distributor’s performance of this Agreement. |
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Partnership will use commercially reasonable efforts to ship all orders placed by the Distributor for the Products on the shipment date(s) requested. If, however, at the time of Partnership’s receipt of Distributor’s order, Partnership is unable to meet the requested shipment date (s) due to a backlog of previously accepted but unfilled or incomplete orders or due to any other circumstance beyond the reasonable control of Partnership, then Partnership may choose not to accept such order for the requested shipment date by so notifying Distributor and providing an alternative shipment date. |
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Agreement by Distributor . |
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(a) |
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Sales . Distributor agrees to push vigorously the sale of the Products throughout the entire Territory. Without in anyway limiting Distributor’s obligation hereunder, Distributor must fully |
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meet and increase the demand for the Products throughout the Territory and secure fun distribution up to the maximum sales potential therein through all distribution channels or outlets available for the Products (including, without limitation, vending machines), using any and all equipment reasonably necessary to secure such distribution. In furtherance of this objective, Distributor shall service all accounts with frequency adequate to keep them at all times fully supplied with the Products and use its own salesmen and trucks (or the salesmen and trucks of independent distributors approved by Distributor and the Partnership) in quantity adequate for all seasons. |
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(b) |
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Advertising Cooperation . Distributor agrees to fully cooperate and vigorously promote Partnership’s advertising and sales promotion programs and campaigns in the Territory. In addition, Distributor shall actively advertise in all reasonable media including adequate point-of-purchase advertising, and vigorously engage in sales promotion of the Products throughout the Territory at its own cost and expense. All advertising copy and media shall be subject to Partnership’s approval. |
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(c) |
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Competing Products . Distributor agrees not to bottle, distribute or sell, directly or indirectly, any other ready-to-drink coffee containing or coffee flavored beverage or any other ready-to-drink non-carbonated coffee-free dairy based strawberry blend beverage or any other beverage which could be confused with the Products or any beverage whose trade name or trademark or other designation could be confused with any of the Beverage Trademarks, excepting any such other coffee containing, coffee flavored or other beverage the distribution or sale of which is permitted under separate agreement from PepsiCo, Inc. (or an affiliate thereof), the Partnership, or Starbucks (or an affiliate thereof). Membership by Distributor in a production co-operative which bottles or manufactures coffee or coffee flavored or coffee-free dairy b |






