NORTH AMERICAN COFFEE
PARTNERSHIP
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” ).
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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1.
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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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2.
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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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3.
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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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4.
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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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5.
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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
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