Document:

EX-10.3

 

Exhibit 10.3

FORM
OF EMPLOYEE MATTERS AGREEMENT

among

CADBURY PLC

CADBURY SCHWEPPES, PLC

and

DR PEPPER SNAPPLE GROUP, INC.

Dated as of [          ], 2008

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	PAGE	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 1

	 	 	 	 	 
	 	 	 	 
	SCOPE AND DEFINITIONS

	 	 	 	 	 
	 	 	 	 
	Section 1.01	 	Scope
	 	 	4	 
	Section 1.02	 	Definitions
	 	 	4	 
	Section 1.03	 	Interpretation
	 	 	7	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 2

	 	 	 	 	 
	 	 	 	 
	ASSIGNMENT OF EMPLOYEES

	 	 	 	 	 
	 	 	 	 
	Section 2.01	 	Active Employees
	 	 	7	 
	Section 2.02	 	Former Employees
	 	 	8	 
	Section 2.03	 	Employment Law Obligations
	 	 	8	 
	Section 2.04	 	Employee Records
	 	 	9	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 3

	 	 	 	 	 
	 	 	 	 
	EQUITY COMPENSATION PLANS

	 	 	 	 	 
	 	 	 	 
	ARTICLE 4

	 	 	 	 	 
	 	 	 	 
	EMPLOYEE STOCK PURCHASE PLAN

	 	 	 	 	 
	 	 	 	 
	ARTICLE 5

	 	 	 	 	 
	 	 	 	 
	GENERAL PRINCIPLES FOR ALLOCATION OF LIABILITIES

	 	 	 	 	 
	 	 	 	 
	Section 5.01	 	General Principle
	 	 	11	 
	Section 5.02	 	Establishment of DPSG Plans
	 	 	12	 
	Section 5.03	 	Transfer of Assets and Liabilities
	 	 	12	 
	Section 5.04	 	Service Credit
	 	 	12	 
	Section 5.05	 	Plan Administration
	 	 	13	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 6

	 	 	 	 	 
	 	 	 	 
	U.S. PENSION PLAN SPIN-OFF

	 	 	 	 	 
	 	 	 	 
	Section 6.01	 	General Principle
	 	 	14	 
	Section 6.02	 	Determination and Transfer of Initial Transfer Amount
	 	 	14	 
	Section 6.03	 	Determination of the Final Pension Transfer Amount
	 	 	15	 

i

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	PAGE	 
	 	 	 	 	 
	 	 	 	 
	Section 6.04	 	True-Up Adjustment
	 	 	16	 
	Section 6.05	 	Form and Selection of Assets to be Transferred
	 	 	16	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 7

	 	 	 	 	 
	 	 	 	 
	U.S. 401(K) PLAN

	 	 	 	 	 
	 	 	 	 
	Section 7.01	 	General Principle
	 	 	16	 
	Section 7.02	 	Transfer of Accounts
	 	 	17	 
	Section 7.03	 	Funding of 2008 Matching Contribution
	 	 	17	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 8

	 	 	 	 	 
	 	 	 	 
	U.S. WELFARE BENEFIT PLANS

	 	 	 	 	 
	 	 	 	 
	Section 8.01	 	General
Principles
	 	 	18	 
	Section 8.02	 	Establishment of DPSG Plans
	 	 	18	 
	Section 8.03	 	Insurance Contracts
	 	 	19	 
	Section 8.04	 	Third Party Vendors
	 	 	19	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 9

	 	 	 	 	 
	 	 	 	 
	FRINGE BENEFIT AND OTHER U.S. PLANS AND PROGRAMS

	 	 	 	 	 
	 	 	 	 
	ARTICLE 10

	 	 	 	 	 
	 	 	 	 
	WORKERS COMPENSATION AND UNEMPLOYMENT COMPENSATION

	 	 	 	 	 
	 	 	 	 
	ARTICLE 11

	 	 	 	 	 
	 	 	 	 
	COMPENSATION MATTERS AND GENERAL BENEFIT AND EMPLOYEE MATTERS

	 	 	 	 	 
	 	 	 	 
	Section 11.01	 	Restrictive Covenants in Employment and Other Agreements
	 	 	20	 
	Section 11.02	 	Severance
	 	 	20	 
	Section 11.03	 	Accrued Vacation Days Off
	 	 	21	 
	Section 11.04	 	Leaves of Absence
	 	 	21	 
	Section 11.05	 	Cadbury Obligations
	 	 	21	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 12

	 	 	 	 	 
	 	 	 	 
	CANADIAN EMPLOYEE MATTERS

	 	 	 	 	 
	 	 	 	 
	ARTICLE 13

	 	 	 	 	 
	 	 	 	 
	GENERAL PROVISIONS

ii

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	PAGE	 
	 	 	 	 	 
	 	 	 	 
	Section 13.01	 	Preservation of Rights to Amend
	 	 	21	 
	Section 13.02	 	Confidentiality
	 	 	21	 
	Section 13.03	 	Administrative Complaints/Litigation
	 	 	21	 
	Section 13.04	 	Reimbursement and Indemnification
	 	 	22	 
	Section 13.05	 	Costs of Compliance with Agreement
	 	 	22	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 14

	 	 	 	 	 
	 	 	 	 
	MISCELLANEOUS

	 	 	 	 	 
	 	 	 	 
	Section 14.01	 	Notices
	 	 	22	 
	Section 14.02	 	Amendments; No Waivers
	 	 	23	 
	Section 14.03	 	Successors and Assigns
	 	 	24	 
	Section 14.04	 	Governing Law
	 	 	24	 
	Section 14.05	 	Counterparts; Effectiveness; Third-Party Beneficiaries
	 	 	24	 
	Section 14.06	 	Entire Agreement
	 	 	24	 
	Section 14.07	 	Jurisdiction
	 	 	24	 
	Section 14.08	 	Waiver of Jury Trial
	 	 	25	 
	Section 14.09	 	Severability
	 	 	25	 
	Section 14.10	 	Survival
	 	 	25	 
	Section 14.11	 	Captions
	 	 	25	 
	Section 14.12	 	Specific Performance
	 	 	25	 
	Section 14.13	 	Mutual Drafting
	 	 	26	 
	Section 14.14	 	Operating Committee
	 	 	26	 
	Section 14.15	 	Consent to
the Reduction
	 	 	26	 
	Section 14.16	 	Effect if Separation Does Not Occur
	 	 	26	 
	Section 14.17	 	Corporate Authorization
	 	 	26	 

iii

 

EMPLOYEE MATTERS AGREEMENT

          THIS EMPLOYEE MATTERS AGREEMENT dated as of [          ], 2008 among Cadbury Schweppes, plc,
a United Kingdom public limited company incorporated in England and
Wales with the registered number 0052457 and whose registered office
is at 25 Berkeley Square, London W1J 6HB (“Cadbury”), Dr Pepper Snapple Group, Inc., a Delaware
corporation (“DPSG”) and, solely for the purposes of Section 11.05, Cadbury plc, a United Kingdom
public limited company incorporated in England and
Wales with the registered number 06497379 and whose registered office
is at 25 Berkeley Square, London W1J 6HB (“Cadbury plc”). Each of Cadbury and DPSG is sometimes referred to herein
as a “Party” and together, as the “Parties”.

RECITALS

          WHEREAS, Cadbury, Cadbury plc and DPSG have entered into a Separation and Distribution
Agreement as of the date hereof (the “Separation Agreement”) pursuant to which Cadbury will
distribute on a pro rata basis to the holders of Cadbury’s Common Stock, par value $0.01 per share
(“Cadbury Common Stock”), without any consideration being paid by such holders, all of the
outstanding shares of Common Stock, par value $0.01 per share of DPSG (“DPSG Common Stock”) then
owned by Cadbury (the “Distribution”).

          WHEREAS, in connection with the Separation, Cadbury, Cadbury plc and DPSG desire to enter into
this Employee Matters Agreement as a complement to the Separation Agreement.

          NOW THEREFORE, in consideration of the mutual covenants contained herein and in the Separation
Agreement, Cadbury, Cadbury plc and DPSG hereto agree as follows:

ARTICLE 1

SCOPE AND DEFINITIONS

          Section 1.01 Scope. Notwithstanding anything to the contrary contained herein (i) this Agreement shall not
apply with respect to any Employee whose primary employer within the Cadbury Group or DPSG Group is
or was an entity domiciled in Mexico and (ii) the terms of this Agreement shall apply only to the
extent relevant with respect to the appropriate treatment of any Employee whose primary employer
within the Cadbury Group or DPSG Group is or was an entity domiciled in a country other than Canada
or the U.S (including Puerto Rico). For the avoidance of doubt, any relevant portions of this
Agreement shall apply with respect to the Employees listed on Schedule 1.01(i) hereof (who are
Employees who are or have been located outside the U.S., but are or have been covered under U.S.
compensation and benefit plans and arrangements).

          Section 1.02 Definitions. Unless otherwise defined herein, each capitalized term shall have the meaning specified for
such term in the Separation Agreement. As used in this Agreement:

          “Agreement” means this Employee Matters Agreement together with those parts of the Separation
Agreement referenced herein, all Schedules hereto and all amendments, modifications and changes
hereto and thereto.

 

 

          “Business Day” means any day, other than a Saturday, a Sunday or a day on which banks in New
York, New York are authorized or obligated by law to close.

          “Cadbury 401(k) Plan” means the Cadbury Adams Holdings LLC Employees’ Savings Incentive Plan.

          “Cadbury Business Employee” means any individual who is, immediately prior to the
Distribution, employed by Cadbury or any of its Subsidiaries or Affiliates and is not a DPSG
Business Employee.

          “Cadbury Committee” shall mean the Remuneration Committee of the Board of Directors of
Cadbury.

          “Cadbury ESPP” means the Cadbury Employee Stock Purchase Plan.

          “Cadbury Non-ERISA U.S. Benefit Arrangement” means any Non-ERISA U.S. Benefit Arrangement
sponsored or maintained by Cadbury.

          “Cadbury Pension Plan” means the Cadbury Adams Holdings LLC Personal Pension Account Plan, the
Cadbury Adams Holdings LLC Supplemental Executive Retirement Plan and the Cadbury Adams Holdings
LLC Pension Equalization Plan.

          “Cadbury Pension and Welfare Benefit Plan” means any Pension Plan or Welfare Plan sponsored or
maintained by Cadbury or a Cadbury Subsidiary.

          “Cadbury Retiree Medical Plan” means that portion of the Cadbury Health and Welfare Benefits
Plan that provides post-employment medical benefits beyond those required to be provided pursuant
to COBRA. This includes the Cadbury Schweppes $25,000 Retiree Health Plan and the Cadbury
Schweppes Retiree Health Plan.

          “Cadbury Subsidiary” means any entity of which securities or other ownership interests having
ordinary voting power to elect a majority of the board of directors or other persons performing
similar functions are expected to be directly or indirectly owned by Cadbury immediately after the
Distribution.

          “COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as codified at Part
6 of Subtitle B of Title I of ERISA and at Section 4980B of the Code, as amended.

          “Code” means the U.S. Internal Revenue Code of 1986, as amended.

          “Demerger Effective Time” shall have the meaning set forth in Section 1.01 of the Separation
Agreement.

 

 

          “DPSG Business Employee” means any individual who is, immediately prior to the Distribution,
employed by DPSG or any of their respective Subsidiaries. A DPSG Business Employee may not be a
Cadbury Business Employee.

          “DPSG Non-ERISA U.S. Benefit Arrangement” means any Non-ERISA U.S. Benefit Arrangement
sponsored or maintained by DPSG.

          “DPSG Pension and Welfare Benefit Plan” means any Pension Plan or Welfare Plan sponsored or
maintained by DPSG or a DPSG Subsidiary.

          “DPSG Subsidiary” means any entity of which securities or other ownership interests having
ordinary voting power to elect a majority of the board of directors or other persons performing
similar functions are expected to be directly or indirectly owned by DPSG immediately after the
Distribution.

          “Employee” means any Cadbury Business Employee or Former Cadbury Employee or DPSG Business
Employee or Former DPSG Employee.

          “ERISA” means the U.S. Employee Retirement Income Security Act of 1974, as amended.

          “FMLA” means the U.S. Family Medical Leave Act, as amended.

          “Former DPSG Employees” has the meaning set forth in Section 2.02(c).

          “Former Cadbury Employees” has the meaning set forth in Section 2.02(b).

          “IRS” means the U.S. Internal Revenue Service.

          “Non-ERISA U.S. Benefit Arrangement” means any contract, agreement, policy, practice, program,
plan, trust or arrangement, other than a Pension Plan or Welfare Plan, providing for benefits,
perquisites or compensation of any nature to any Employee, or to any family member, dependent or
beneficiary of any such Employee, including, without limitation, disability, severance, health,
dental, life, accidental death and dismemberment, travel and accident, tuition reimbursement,
vacation, sick, personal or bereavement days, holidays, retirement, deferred compensation, profit
sharing, bonus, stock-based compensation or other forms of incentive compensation.

          “Pension Plan” means any pension plan as defined in Section 3(2) of ERISA, without regard to
Section 4(b)(4) or 4(b)(5) of ERISA.

          “Welfare Plan” means any employee welfare plan as defined in Section 3(1) of ERISA, without
regard to Section 4(b)(4) of ERISA.

          “WARN” means the U.S. Workers Adjustment Retraining and Notification Act, as amended and any
applicable state or local law equivalent.

 

 

          Section 1.03 Interpretation. In this Agreement, unless the context clearly indicates otherwise:

     (a) words used in the singular include the plural and words used in the plural include the
singular;

     (b) references to any Person include such Person’s successors and assigns but, if applicable,
only if such successors and assigns are permitted by this Agreement, and a reference to such
Person’s “Affiliates” shall be deemed to mean such Person’s Affiliates following the Distribution;

     (c) references to any gender include the other gender;

     (d) accounting terms used herein shall have the meanings historically ascribed to them by
Cadbury and its Subsidiaries, including DPSG, in its and their internal accounting and financial
policies and procedures in effect prior to the date of this Agreement;

     (e) if there is any conflict between the provisions of the Separation Agreement and this
Agreement, the provisions of this Agreement shall control with respect to the subject matter
hereof; if there is any conflict between the provisions of the body of this Agreement and the
Schedules hereto, the provisions of the body of this Agreement shall control unless explicitly
stated otherwise in such Schedule;

     (f) the titles to Articles and headings of Sections contained in this Agreement have been
inserted for convenience of reference only and shall not be deemed to be a part of or to affect the
meaning or interpretation of this Agreement; and

     (g) unless otherwise specified in this Agreement, all references to dollar amounts herein
shall be in respect of lawful currency of the United States.

ARTICLE 2

ASSIGNMENT OF EMPLOYEES

          Section 2.01 Active Employees.

     (a) DPSG Business Employees. Except as otherwise set forth in this Agreement,
effective not later than the Distribution Date, the employment of each DPSG Business Employee who
is employed by Cadbury or a Cadbury Subsidiary shall be assigned and transferred to DPSG or a DPSG
Subsidiary. As of the Distribution Date, DPSG shall and shall cause each DPSG Subsidiary to
continue the employment of each DPSG Business Employee who is employed by DPSG or a DPSG
Subsidiary.

     (b) Cadbury Business Employees. Effective not later than the Distribution Date, the
employment of each Cadbury Business Employee who is employed by DPSG or a DPSG Subsidiary shall be
assigned and transferred to Cadbury or a Cadbury Subsidiary. As of the Distribution Date, Cadbury
shall and shall cause each Cadbury Subsidiary to continue the

 

 

employment of each Cadbury Business
Employee who is employed by Cadbury or a Cadbury Subsidiary.

     (c) At-Will Status. Notwithstanding the above or any other provision of this
Agreement, nothing in this Agreement shall create any obligation on the part of Cadbury, DPSG or
any of their respective Affiliates to continue the employment of any employee for any definite
period following the Distribution Date or to change the employment status of any employee from “at
will,” to the extent such employee is an “at will” employee under applicable law.

     (d) Severance. The Distribution and the assignment, transfer or continuation of the
employment of employees in connection therewith shall not be deemed a severance of employment of
any employee for purposes of any plan, policy, practice or arrangement of Cadbury, DPSG or any of
their respective Subsidiaries, except as otherwise provided herein.

          Section 2.02 Former Employees.

     (a) General Principal. Except as otherwise provided in this Agreement, each former
employee of Cadbury or any Cadbury Subsidiary or DPSG or any DPSG Subsidiary as of the Distribution
Date will be considered a former employee of the business as to which his or her duties were
primarily related immediately prior to his or her termination of employment with all of Cadbury,
DPSG and their respective Affiliates.

     (b) Former Cadbury Employees. For these purposes, former employees of Cadbury and the
Cadbury Subsidiaries shall be deemed to include all employees who, as of their last day of
employment with all of Cadbury, DPSG and their respective Affiliates, had employment duties
primarily related to the Cadbury Business (collectively, the “Former Cadbury Employees”).

     (c) Former DPSG Employees. Except with respect to those individuals set forth on
Schedule 2.02(c), former employees of DPSG and the DPSG Subsidiaries shall be deemed to include all
employees who, as of their last day of employment with all of Cadbury, DPSG and their respective
Affiliates, had employment duties primarily related to the DPSG Business (collectively, the “Former
DPSG Employees”).

          Section 2.03 Employment Law Obligations.

     (a) WARN Act. Cadbury and the Cadbury Subsidiaries shall be responsible for providing
any necessary WARN notice (and meeting any similar state law notice requirements) with respect to
any termination of any Cadbury Business Employee. DPSG and the DPSG Subsidiaries shall be
responsible for providing any necessary WARN notice (and meeting any
similar state law notice requirements) with respect to any termination of any DPSG Business
Employee; provided, however, that Cadbury and the Cadbury Subsidiaries shall be
responsible for providing any necessary WARN notice (and any similar state law notice requirements)
to any DPSG Business Employee or any governmental authority in connection with any transfer of the
employment of any DPSG Business Employee from a Cadbury Group entity to a DPSG Group entity in
contemplation of the Distribution.

 

 

     (b) Compliance With Employment Laws. On and after the Distribution Date (i) Cadbury
and the Cadbury Subsidiaries shall be responsible for adopting and maintaining any policies or
practices, and for all other actions and inactions, necessary to comply with employment-related
laws and requirements relating to the employment of the Cadbury Business Employees and the
treatment of the Former Cadbury Employees in respect of their former employment with Cadbury and
its Affiliates and (ii) DPSG and the DPSG Subsidiaries shall be responsible for adopting and
maintaining any policies or practices, and for all other actions and inactions, necessary to comply
with employment-related laws and requirements relating to the employment of the DPSG Business
Employees and the treatment of the Former DPSG Employees in respect of their former employment with
DPSG and their respective Affiliates.

          Section 2.04 Employee Records.

     (a) Records Relating to Cadbury Business Employees and Former Cadbury Employees. All
records and data in any form relating to Cadbury Business Employees and Former Cadbury Employees
shall be the property of Cadbury, except that data pertaining to such an employee and relating to
any period that such employee was employed by DPSG or a DPSG Subsidiary prior to the Distribution
shall be jointly owned by Cadbury and DPSG.

     (b) Records Relating to DPSG Business Employees and Former DPSG Employees. All
records and data in any form relating to DPSG Business Employees and Former DPSG Employees shall be
the property of DPSG, except that data pertaining to such an employee and relating to any period
that such employee was employed by Cadbury, DPSG or any of their respective Subsidiaries prior to
the Distribution shall be jointly owned by Cadbury and DPSG.

     (c) Sharing of Records. The Parties shall use their respective reasonable commercial
efforts to provide each other such records and information only as necessary or appropriate to
carry out their obligations under applicable law (including, without limitation, any relevant
privacy protection laws or regulations in any applicable jurisdictions), this Agreement or the
Separation Agreement or the Transition Services Agreement, or for the purposes of administering
their respective employee benefit plans and policies. Subject to applicable law, all information
and records regarding employment and personnel matters of DPSG Business Employees and Former DPSG
Employees shall be accessed, retained, held, used, copied and transmitted after the Distribution
Date by DPSG in accordance with all laws and policies relating to the collection, storage,
retention, use, transmittal, disclosure and destruction of such records. The Parties shall
reimburse each other for any reasonable costs incurred in copying or transmitting any records
requested pursuant to this Section 2.04.

     (d) Access to Records. To the extent consistent with this Agreement and any
applicable privacy protection laws or regulations, access to such records after the Distribution
Date will be provided to Cadbury and DPSG in accordance with the Separation Agreement. In
addition, notwithstanding anything to the contrary, Cadbury shall retain reasonable access to those
records necessary for Cadbury’s continued administration of any plans or programs on behalf of
Employees after the Distribution Date, provided that such access shall be limited to individuals
who have a job-related need to access such records. Cadbury shall also retain copies of all
restrictive covenant agreements with any DPSG Business Employee or Former DPSG Employee in which
Cadbury has a valid business interest.

 

 

     (e) Maintenance of Records. With respect to retaining, destroying, transferring,
sharing, copying and permitting access to all such information, Cadbury and DPSG shall each comply
with all applicable laws, regulations and internal policies, and each Party shall indemnify and
hold harmless the other Party from and against any and all liability, claims, actions, and damages
that arise from a failure (by the indemnifying party or its agents) to so comply with all
applicable laws, regulations and internal policies applicable to such information.

     (f) No Access to Computer Systems or Files. Except as set forth in the Separation
Agreement or the Transition Services Agreement, no provision of this Agreement shall give either
Party direct access to the computer systems or other files, records or databases of the other
Party, unless specifically permitted by the owner of such systems, files, records or databases.

     (g) Relation to Separation Agreement. The provisions of this Section 2.04 shall be in
addition to, and not in derogation of, the provisions of the Separation Agreement governing
Confidential Information and access to and use of employees, information and records, including
Sections of the Separation Agreement.

     (h) Confidentiality. Except as otherwise set forth in this Agreement, all records and
data relating to Employees shall, in each case, be subject to the confidentiality provisions of the
Separation Agreement.

     (i) Cooperation. DPSG and Cadbury and their respective Affiliates shall use reasonable
commercial efforts to cooperate to share, retain and maintain data and records that are necessary
or appropriate to further the purposes of this Section 2.04 and for each other to administer their
respective benefit plans to the extent consistent with this Agreement and applicable law. Except
as provided under the Transition Services Agreement, neither DPSG nor Cadbury shall charge the
other any fee for such cooperation. The parties agree to cooperate as long as is reasonably
necessary to further the purposes of this Section 2.04.

ARTICLE 3

EQUITY COMPENSATION PLANS

[Reserved]

ARTICLE 4

EMPLOYEE STOCK PURCHASE PLAN

          DPSG Business Employees and Former DPSG Employees shall be treated for purposes of the Cadbury
ESPP as “good leavers” as of the Distribution Date and shall be entitled to receive benefits in
accordance with the provisions of the Cadbury ESPP; provided, however, that Cadbury
may take such actions as it deems appropriate with respect to the shares of DPSG and shares of
Cadbury. DPSG Business Employees shall not contribute to the Cadbury ESPP after the Distribution
Date, unless they shall become employed by Cadbury following the Distribution Date.

 

 

ARTICLE 5

GENERAL PRINCIPLES FOR ALLOCATION OF LIABILITIES

          Section 5.01 General Principle.

     (a) Cessation of Participation in Cadbury Pension and Welfare Benefit Plans and Non-ERISA
U.S. Benefit Arrangements. Cadbury and DPSG shall take any and all action as shall be
necessary or appropriate so that participation in Cadbury Pension and Welfare Benefit Plans and
Cadbury Non-ERISA U.S. Benefit Arrangements by all DPSG Business Employees and Former DPSG
Employees shall terminate in connection with the Distribution as and when provided under this
Agreement (or if not specifically provided under this Agreement, as of the close of business on the
Distribution Date) and DPSG and each DPSG Subsidiary shall cease to be a participating employer
under the terms of such Cadbury Pension and Welfare Benefit Plans and Cadbury Non-ERISA U.S.
Benefit Arrangements as of such time.

          Except as otherwise agreed below, DPSG shall have all liabilities and all assets relating to
employee benefits for DPSG Business Employees and Former DPSG Employees and Cadbury shall have all
liabilities and all assets relating to employee benefits for Cadbury Business Employees and Former
Cadbury Employees.

     (b) Assumption of Certain Obligations by DPSG Group. Except as otherwise provided in
this Agreement, effective on or before the Distribution Date, DPSG shall assume or continue the
sponsorship of, and none of Cadbury or any Cadbury Subsidiary shall have any further liability for
or under, the following agreements, obligations and liabilities, and DPSG shall indemnify Cadbury
and the Cadbury Subsidiaries, and the officers, directors, and employees of each, and hold them
harmless with respect to such agreements, obligations or liabilities:

     (i) Agreements entered into between Cadbury, its Subsidiaries or Affiliates and DPSG
Business Employees and Former DPSG Employees;

     (ii) Agreements entered into between Cadbury, its Subsidiaries or Affiliates and
independent contractors providing services primarily to the DPSG Business;

     (iii) All collective bargaining agreements, collective agreements, trade union, or works
council agreements entered into between Cadbury, its Subsidiaries or Affiliates and any
union, works council, or other body representing only DPSG Business Employees and Former
DPSG Employees;

     (iv) All wages, salary, incentive compensation, commissions and bonuses payable to
DPSG Business Employees and Former DPSG Employees on or after the Distribution Date, without
regard to when such wages, salary, incentive compensation, commissions and bonuses are or
may have been earned;

     (v) All moving expenses and obligations related to relocation, repatriation,
transfers, or similar items incurred by or owed to DPSG Business Employees and Former DPSG
Employees;

 

 

     (vi) All immigration-related, visa, work application, or similar rights, obligations and
liabilities related to DPSG Business Employees; and

     (vii) All liabilities and obligations whatsoever of the DPSG Business with respect to
claims made by or with respect to DPSG Business Employees and Former DPSG Employees or any
other persons who at any time prior to the Distribution Date had employment duties primarily
related to the DPSG Business relating to any employee benefit plan, program or policy not
otherwise retained or assumed by Cadbury pursuant to this Agreement, including such
liabilities relating to actions or omissions of or by DPSG or any officer, director,
employee or agent thereof prior to the Distribution Date.

          Section 5.02 Establishment of DPSG Plans. Except as otherwise provided in this
Agreement, sponsorship of Cadbury benefit plans that cover solely DPSG Business Employees and
Former DPSG Employees shall be transferred to DPSG on or before the Distribution Date. Cadbury
benefit plans that cover DPSG Business Employees and Former DPSG Employees and that also cover
Cadbury Business Employees and/or Former Cadbury Employees shall be split into two separate plans,
one covering DPSG Business Employees and Former DPSG Employees and one covering Cadbury Business
Employees and/or Former Cadbury Employees, and sponsorship of the plans covering DPSG Business
Employees and Former DPSG Employees shall be transferred to DPSG on or before the Distribution
Date.

          Section 5.03 Transfer of Assets and Liabilities. To the extent necessary to
effectuate the foregoing, DPSG and Cadbury shall, in compliance with applicable law, transfer
assets (if any) and liabilities of any such benefit plans to each other, including under the
following plans:

CBI Holdings Inc. Health & Welfare Benefits Plan

CBI Holdings Inc. Premium Payment Plan

CBI Holdings Inc. Flexible Spending Account Plan

CBI Holdings Inc. Dependent Care Spending Account Plan

CBI Holdings Inc. Severance Pay Plan

Dr Pepper Bottling Company of Texas, ETAL Occupational Injury Benefit Plan

Cadbury Adams Holdings LLC Personal Pension Account Plan

Cadbury Adams Holdings LLC Pension Equalization Plan

Cadbury Adams Holdings LLC Supplemental Savings Plan

Cadbury Adams Holdings LLC Supplemental Executive Retirement Plan

Cadbury Adams Holdings LLC Supplemental Incentive Plan

          Section 5.04 Service Credit.

     (a) Service for Eligibility and Vesting. Except as otherwise provided in any other
provision of this Agreement (i) for purposes of participation, eligibility and vesting under the
DPSG Pension and Welfare Benefit Plans, DPSG shall, and shall cause the DPSG Subsidiaries
to, give to each DPSG Business Employee and Former DPSG Employee service credit for any
employment with Cadbury or any Cadbury Affiliate prior to the Distribution Date to the extent that
such service is taken into account pursuant to the terms of the comparable Cadbury plan and (ii)
for purposes of participation, eligibility and vesting under the Cadbury Pension and Welfare

 

 

Benefit Plans, Cadbury shall, and shall cause the Cadbury Subsidiaries to, give to each Cadbury
Business Employee and Former Cadbury Employee service credit for any employment with DPSG or any
DPSG Affiliate prior to the Distribution Date (to the extent available to employees generally).

     (b) Service for Benefit Purposes. Except as otherwise provided in any other provision
of this Agreement (i) for purposes of benefit levels and accruals, post-retirement welfare benefit
contribution rates and benefit commencement entitlements under the DPSG Pension and Welfare Benefit
Plans, DPSG shall, and shall cause the DPSG Subsidiaries to, give to each DPSG Business Employee
and Former DPSG Employee service credit for any employment with Cadbury or any Cadbury Affiliate
prior to the Distribution Date to the extent that such service is taken into account pursuant to
the terms of the comparable Cadbury plan and (ii) for purposes of benefit levels and accruals,
post-retirement welfare benefit contribution rates and benefit commencement entitlements under the
Cadbury Pension and Welfare Benefit Plans, Cadbury shall, and shall cause the Cadbury Subsidiaries
to, give to each Cadbury Business Employee and Former Cadbury Employee service credit for any
employment with DPSG or any DPSG Affiliate prior to the Distribution Date (to the extent available
to employees generally).

     (c) Evidence of Prior Service. Notwithstanding anything to the contrary, but subject
to applicable law, upon reasonable request by one Party to the other Party, the first Party will
provide to the other copies of any records available to the first Party to document such service,
plan participation and membership and cooperate with the first Party to resolve any discrepancies
or obtain any missing data for purposes of determining benefit eligibility, participation, vesting
and calculation of benefits with respect to such DPSG Business Employees and Former DPSG Employees.

          Section 5.05 Plan Administration.

     (a) Transition Services. DPSG will administer Cadbury’s benefit programs for a
transitional period under the terms of the Transition Services Agreement. The Parties agree to
enter into a business associate agreement in connection with such Transition Services Agreement,
which shall be set forth as Appendix 1 to this Agreement.

     (b) Administration. DPSG shall, and shall cause the DPSG Subsidiaries to, administer
its benefit plans in a manner that does not jeopardize the tax favored status of the tax favored
benefit plans maintained by Cadbury and the Cadbury Subsidiaries. Cadbury shall, and shall cause
the Cadbury Subsidiaries to, administer its benefit plans in a manner that does not jeopardize the
tax favored status of the tax favored benefit plans maintained by DPSG and the DPSG Subsidiaries.

     (c) Participant Elections and Beneficiary Designations. All participant elections and
beneficiary designations made under any Cadbury benefit plan prior to the date as of which assets
or liabilities relating to that plan are transferred to DPSG shall continue in effect under any
plan maintained by DPSG or any DPSG Subsidiary to which liabilities are transferred pursuant
to this Agreement until such time as the participant changes his or her elections or beneficiary
designations in accordance with the procedures of the relevant plan, as the case may be.

 

 

ARTICLE 6

U.S. PENSION PLAN SPIN-OFF

          Section 6.01 General Principle. Effective on or before the Distribution Date, DPSG
shall establish and adopt a defined benefit pension benefit plan and trust (the “DPSG Pension
Plan”) intended to be qualified under Code Section 401(a) and containing provisions that will
provide to each DPSG Business Employee and Former DPSG Employee (and each alternate payee or
beneficiary of such person) (the “DPSG Pension Beneficiaries”) benefits identical to those accrued
with respect to such person under the Cadbury Pension Plan as of December 31, 2007 (the “Pension
Measurement Date”). On or before the Distribution Date, Cadbury shall (i) determine the Initial
Transfer Amount (as defined below) and (ii) cause assets equal to the Initial Transfer Amount
(adjusted as provided below) to be transferred to the trust under the DPSG Pension Plan in the form
described below (the “Initial Transfer”). As of the date of such transfer of the Initial Transfer
Amount (the “Initial Transfer Date”), DPSG shall commence making the required benefit payments
under the terms of the DPSG Pension Plan and shall assume all liabilities with respect to the
payment of benefits previously accrued by the DPSG Pension Beneficiaries under the Cadbury Pension
Plan. A DPSG Business Employee shall not accrue benefits under the Cadbury Pension Plan after the
date on which such employee becomes eligible to participate under the DPSG Pension Plan, unless
such DPSG Pension Beneficiary shall become employed by Cadbury or a Cadbury Subsidiary after such
date. A Cadbury Business Employee shall not accrue benefits under the DPSG Pension Plan, unless
such Cadbury Business Employee shall become employed by DPSG or a DPSG Subsidiary. Following the
Initial Transfer Date (i) an enrolled actuary appointed by Cadbury (the “Cadbury Actuary”) shall
determine the Final Pension Transfer Amount (as defined below) and (ii) a True-Up Adjustment shall
be made with respect to the Cadbury Pension Plan and the DPSG Pension Plan, as provided below. The
Parties shall use reasonable commercial efforts to cause the determination of the Final Pension
Transfer Amount and the True-Up Adjustment to be completed as reasonably promptly as practicable,
subject to the time frames established under Section 6.03, but in no event later than December 31,
2008. Before or promptly after the date hereof, Cadbury and DPSG shall file requests with the IRS
for qualification determination letters under Code Section 401(a) with respect to the Cadbury
Pension Plan and the DPSG Pension Plan and shall take any and all reasonable action, including the
adoption of any amendments requested by the IRS, as shall be necessary to obtain such determination
letters. The transfers hereunder shall occur prior to, but subject to the subsequent receipt of,
favorable determination letters issued by the IRS with respect to the Cadbury Pension Plan and DPSG
Pension Plan, copies of which shall be shared among Cadbury and DPSG promptly upon issuance.

          Section 6.02 Determination and Transfer of Initial Transfer Amount. On or before the
Distribution Date, with the assistance of the Cadbury Actuary, Cadbury shall establish and
communicate to DPSG the amount equal to 90% of the estimated asset transfer amount calculated as of
January 1, 2008 in accordance with Code Section 414(l) but based on January 1,2007 census data and
November 30, 2007 trust assets as attributable to benefits accrued by
DPSG Pension Beneficiaries under the Cadbury Pension Plan as of the Pension Measurement Date,
adjusted for contributions, distributions, trust gains and losses, payments and other appropriate
items occurring between the Pension Measurement Date and the Initial Transfer Date, all as
estimated in good faith by Cadbury (the “Initial Transfer Amount”). Following the

 

 

determination of
the Initial Transfer Amount by Cadbury, Cadbury shall cause to be transferred from the trust under
the Cadbury Pension Plan to the trust under the DPSG Pension Plan assets having an aggregate Value
(as defined below) equal to the Initial Transfer Amount. Such assets shall be in the form of cash,
securities and other property, determined in accordance with the provisions below.

          Section 6.03 Determination of the Final Pension Transfer Amount.

     (a) Calculation of the Cadbury Actuary. Following the Distribution Date, the Cadbury
Actuary shall determine the Final Pension Transfer Amount, which shall be equal to the amount
required to be transferred from the Cadbury Pension Plan to the DPSG Pension Plan in respect of the
assumption by the DPSG Pension Plan of the benefit obligations of the Cadbury Pension Plan of
benefits accrued by the DPSG Pension Beneficiaries as of the Pension Measurement Date, as
determined in accordance with Section 414(l) of the Code and the regulations thereunder and the
actuarial assumptions and methods set forth in Schedule 6.03 hereof, as appropriately adjusted to
reflect the following amounts arising after the Pension Measurement Date and before the True-Up
Adjustment: (A) any distributions and contributions made in respect of the DPSG Pension
Beneficiaries, (B) administrative expenses of the Cadbury Pension Plan reasonably allocable to the
DPSG Pension Beneficiaries, (C) earnings realized by the Cadbury Pension Plan allocable to the DPSG
Pension Beneficiaries, (D) the net gain or loss (realized and unrealized) of the Cadbury Pension
Plan allocable to the DPSG Pension Beneficiaries and (E) other appropriate items. Cadbury and DPSG
shall each be responsible for the funding of their respective pension plans. It is anticipated
that each pension plan will have underfunding under ERISA Section 4044. Each party shall be
responsible for funding such underfunding under their respective pension plan. Promptly upon
determination of the Final Pension Transfer Amount, Cadbury shall cause the Cadbury Actuary to
provide to DPSG a written statement of the Final Pension Transfer Amount, a summary of the
calculation of such amount (the “Pension Statement”) and a written statement that the sum of the
Initial Transfer Amount and the Final Pension Transfer Amount satisfies the requirements of Section
414(l) of the Code.

     (b) Resolution of Differences. Cadbury shall provide DPSG with all information
reasonably necessary to review the calculation of the Final Pension Transfer Amount in all material
respects and to verify that such calculations have been performed in a manner consistent with the
terms of this Agreement. The determination of the Final Pension Transfer Amount by the Cadbury
Actuary shall be final, conclusive and binding for all purposes under this Agreement, unless DPSG
provides to Cadbury, within thirty (30) days after receipt of the Pension Statement, a written
objection prepared by an enrolled actuary retained by DPSG setting forth in detail a reasonable
basis for the conclusion that the Final Pension Transfer Amount set forth in the Pension Statement
is understated by an amount in excess of 5%. Upon receipt of such objection, Cadbury and DPSG
shall make a good faith attempt to resolve their dispute as to the Final Pension Transfer Amount.
Should such dispute remain unresolved for more than thirty
(30) days, Cadbury and DPSG shall promptly select and appoint a third enrolled actuary who is
mutually satisfactory to both Parties. The third actuary shall recalculate the Final Pension
Transfer Amount and if such recalculated amount exceeds the Final Pension Transfer Amount set forth
in the Pension Statement by more than 5%, then such recalculated amount shall serve as the Final
Pension Transfer Amount for all purposes under this Agreement. If such recalculated

 

 

amount does
not exceed the Final Pension Transfer Amount set forth in the Pension Statement by more than 5%,
then for all purposes under this Agreement the Final Pension Transfer Amount shall be the Final
Pension Transfer Amount as set forth in the Pension Statement. The recalculation of such third
party actuary shall be completed within thirty (30) days of the retention of such third party
actuary and shall be conclusive as to any dispute with respect to the Final Pension Transfer
Amount, except as set forth in Section 6.05 below. The cost of such third party actuary shall be
divided equally between Cadbury and DPSG. Each Party shall be responsible for the cost of its own
actuary.

          Section 6.04 True-Up Adjustment. The following transfer shall be made promptly after
the date that the Final Pension Transfer Amount is determined as set forth above: (A) if the Final
Pension Transfer Amount exceeds the Initial Transfer Amount, Cadbury shall promptly cause to be
transferred from the Cadbury Pension Plan trust to the DPSG Pension Plan trust assets having a
Value equal to such excess and (B) if the Initial Transfer Amount exceeds the Final Pension
Transfer Amount, DPSG shall promptly cause to be transferred from the DPSG Pension Plan trust to
the Cadbury Pension Plan trust assets having a Value equal to such excess.

          Section 6.05 Form and Selection of Assets to be Transferred. The assets to be
transferred in the Initial Transfer and the True-Up Adjustment Assets will be transferred in-kind
or in cash pro rata from each investment manager under the transferring plan in a manner that
represents, as closely as commercially practical, a pro rata portion of each asset and position
held by the manager as of the date of such transfer, except that reasonable adjustments shall be
made where Cadbury determines such transfers cannot reasonably be made by the Cadbury Pension Plan
due to investment manager account minimums or where other considerations prevent such pro rata
transfers or render such pro rata transfers impractical. For purposes of the Agreement, the
“Value” of all pension assets shall be the value of such assets as determined in good faith by
Cadbury based on all relevant information known to Cadbury at the time of such determination,
including the most recent account statements or schedules of asset values provided to Cadbury by
any service providers maintaining or overseeing any such assets or any investment vehicles which
represent or hold the relevant plan assets. Cadbury shall select the assets to be transferred and
provide a schedule of such assets to DPSG 14 days prior to the transfer of such assets. DPSG shall
communicate to Cadbury any objection to the schedule of the assets to be transferred promptly, and
upon receipt by Cadbury of such objection, Cadbury and DPSG shall make a good faith attempt to
resolve their dispute as to the assets to be transferred within the period remaining prior to the
transfer of the assets. Should such dispute remain unresolved upon the asset transfer date, the
assets shall be transferred in accordance with the schedule provided by Cadbury. Any assets that
are liquidated prior to transfer shall be reduced by the asset liquidation expenses actually
incurred.

ARTICLE 7

U.S. 401(K) PLAN

          Section 7.01 General Principle. Effective on or before the Distribution Date, DPSG
shall establish and adopt a qualified employee cash or deferred arrangement under Code Section
401(k) (the “DPSG 401(k) Plan”) intended to be qualified under Code Section 401(a) and containing
provisions that will provide benefits for each DPSG Business Employee and

 

 

Former DPSG Employee (and
each beneficiary and alternate payee of such person) (the “DPSG DC Plan Beneficiaries”) identical
to those in effect for the DPSG DC Plan Beneficiaries as of the date of transfer of assets and
liabilities with respect to such plan (as described below). Before or as soon as reasonably
practicable after the Distribution Date, the assets and liabilities relating to the DPSG DC Plan
Beneficiaries under the Cadbury 401(k) Plan and shall be transferred to the DPSG 401(k) Plan. DPSG
Business Employees shall not make or receive additional contributions under the Cadbury 401(k) Plan
after the effective date of the DPSG 401(k) Plan, unless such DPSG Business Employee shall become
employed by Cadbury or a Cadbury Subsidiary after such date. A Cadbury Business Employee shall not
participate in the DPSG 401(k) Plan after the effective date of the DPSG 401(k) Plan, unless such
Cadbury Business Employee shall become employed by DPSG or a DPSG Subsidiary after such date.

          Section 7.02 Transfer of Accounts. Effective before or as soon as practical following
the Distribution Date, but in no event later than six months following the Distribution Date,
Cadbury shall cause to be transferred from trusts under the Cadbury 401(k) Plan to the trust under
the DPSG 401(k) Plan the aggregate amount that is credited to the accounts of the DPSG DC Plan
Beneficiaries (disregarding any participant loans from the plans) as of the date of transfer, but
not less than or more than permitted by law, as determined by Cadbury. The transfer shall be an
in-kind transfer, subject to the reasonable consent of the trustee of the DPSG 401(k) Plan and
shall include the transfer of the aggregate assets held in the accounts relating to each DPSG DC
Plan Beneficiary under the Cadbury 401(k) Plan and any participant loan notes held under such
plans. Any assets that are liquidated prior to transfer shall be reduced by the asset liquidation
expenses, such as commissions or early withdrawal penalties, actually incurred. Cadbury shall
cause the DPSG 401(k) Plan to allocate the portion of any forfeiture account under the Cadbury
401(k) Plan that relates to forfeiture by Former DPSG Employees consistent with Cadbury’s past
practice regarding allocation of forfeitures under the Cadbury 401(k) Plan. Before or promptly
after the date hereof, Cadbury and DPSG shall file requests with the IRS for qualification
determination letters under Code Section 401(a) and 401(k) (as applicable) with respect to the
Cadbury 401(k) Plan and DPSG 401(k) Plan and shall take any and all reasonable actions, including
the adoption of amendments requested by the IRS, as shall be necessary to obtain such determination
letters. The transfers under this Section 7.02 shall occur prior to, but subject to the subsequent
receipt of favorable determination letters issued by the IRS with respect to the Cadbury 401(k)
Plan and DPSG 401(k) Plan, copies of which shall be shared among Cadbury and DPSG promptly upon
issuance.

          Section 7.03 Funding of 2008 Matching Contribution. DPSG shall fund and allocate the
full amount of any 2008 matching contribution accrued under the terms of the Cadbury 401(k) Plan to
eligible DPSG DC Plan Beneficiaries under the DPSG 401(k) Plan within the time permitted by law
(determined based on the terms of the Cadbury 401(k) Plan
immediately prior to the transfer to the DPSG 401(k) Plan as if the transfer to the DPSG
401(k) Plan did not occur, but paid and contributed by DPSG to the DPSG 401(k) Plan).

 

 

ARTICLE 8

U.S. WELFARE BENEFIT PLANS

          Section 8.01
General
Principles. Except as provided below, on or about the Distribution Date, liabilities relating
to DPSG Business Employees and Former DPSG Employees shall be transferred to newly established DPSG
welfare benefit plans that shall contain the same benefit provisions as in effect for DPSG Business
Employees and Former DPSG Employees immediately prior to such date, and DPSG Business Employees and
Former DPSG Employees shall cease to participate in the Cadbury welfare benefit plans. Welfare
benefit plans include health, welfare, and wellness benefits plans (including, medical, dental,
prescription drug and vision benefits, life insurance, accidental death and disability insurance,
business travel accident insurance, disability (STD and LTD), long term care, flexible spending
accounts, severance, Employee Assistance Plan, and similar types of plans). DPSG Business
Employees and Former DPSG Employees shall not participate in Cadbury welfare benefit plans
following the effective date of the DPSG plans described in this Section 8.01, unless they shall
become employed by Cadbury after such date. Cadbury Business Employees and Former Cadbury
Employees shall not participate in any DPSG welfare benefit plans following the effective date of
such plans, unless they shall become employed by DPSG after such date.

          Section 8.02 Establishment of DPSG Plans.

     (a) General Rule. DPSG Business Employees and Former DPSG Employees shall cease to
participate in the Cadbury welfare benefit plans on or about the Distribution Date.

     (b) Treatment of Claims Incurred. DPSG shall assume and shall be responsible for the
liability for payment of all covered claims (including medical, dental, life insurance and
long-term disability) and eligible expenses incurred by any DPSG Business Employee and
beneficiaries thereof under the Cadbury Welfare Plans and Cadbury Non-ERISA U.S. Benefit
Arrangements prior to the Distribution Date, and Cadbury shall not be responsible for any liability
with respect to any such claims or expenses.

     (c) Credit for Deductibles and Other Limits. With respect to each DPSG Business
Employee and Former DPSG Employee, and each covered dependent, beneficiary, or other related party
of such individual (the “DPSG Welfare Plan Participants”), the DPSG welfare benefit plans will give
credit in the year of the Distribution Date for any amount paid under the comparable type Cadbury
plan by such DPSG Welfare Plan Participant in the year of the Distribution Date toward deductibles,
out-of-pocket maximum, or other, similar limitations to the extent such amounts are taken into
account under the comparable type Cadbury plan. For purposes of any life-time maximum
out-of-pocket limit on expenses paid by a covered participant, the DPSG welfare plans will
recognize any expenses incurred by a DPSG Welfare Plan Participant prior to the Distribution to the
same extent such expenses would be recognized in respect of an active plan participant under the
comparable type Cadbury plan.

     (d) COBRA. Effective as of the date of cessation of participation in the Cadbury
welfare benefit plans by the DPSG Business Employees and Former DPSG Employees (as provided above),
DPSG shall assume and satisfy all requirements under COBRA with respect to

 

 

all DPSG Business
Employees and Former DPSG Employees and their qualified beneficiaries, including for individuals
who are already receiving benefits as of such date under COBRA.

     (e) Disabled Persons. The Parties intend that any Employee who has, prior to the
Distribution Date, become eligible to receive any long-term disability benefits pursuant to any
third-party insurance policy applicable under any welfare benefit plan shall continue to be
eligible to receive such benefits in accordance with the terms of such plan and policy.

     Section 8.03 Insurance Contracts. To the extent any Cadbury welfare benefit plan is
funded through the purchase of an insurance contract or is subject to any stop loss contract,
Cadbury and DPSG will cooperate and use their reasonable commercial efforts to “clone” such
insurance contracts for DPSG and to maintain any pricing discounts or other preferential terms for
both Cadbury and DPSG through the end of the term of the Transition Services Agreement. Neither
party shall be liable for failure to obtain such pricing discounts or other preferential terms for
DPSG. The cost of “cloning”, including any increases in premiums, charges or administrative fees
relating to DPSG Business Employees and Former DPSG Employees shall be the obligation of DPSG.
Each party shall be responsible for any additional premiums, charges or administrative fees that
such party may incur pursuant to this Section 8.03.

     Section 8.04 Third Party Vendors. Except as provided below, to the extent any Cadbury
welfare benefit plan is administered by a third-party vendor, Cadbury and DPSG will cooperate and
use their reasonable commercial efforts to “clone” any contract with such third-party vendor for
DPSG and to maintain any pricing discounts or other preferential terms for both Cadbury and DPSG.
Neither party shall be liable for failure to obtain such pricing discounts or other preferential
terms for DPSG. The cost of “cloning”, including any increases in premiums, charges or
administrative fees relating to DPSG Business Employees and Former DPSG Employees shall be the
obligation of DPSG. Each party shall be responsible for any additional premiums, charges or
administrative fees that such party may incur pursuant to this Section 8.04.

ARTICLE 9

FRINGE BENEFIT AND OTHER U.S. PLANS AND PROGRAMS

     Except as otherwise provided under this Agreement, effective as of the Distribution Date, DPSG
Business Employees and Former DPSG Employees shall not be eligible to participate in any plan,
policy or arrangement of Cadbury or a Cadbury Subsidiary providing fringe benefits to employees or
former employees.

ARTICLE 10

WORKERS COMPENSATION AND UNEMPLOYMENT COMPENSATION

     DPSG shall have and assume the obligations for all claims and liabilities relating to workers
compensation and unemployment compensation benefits for all DPSG Business Employees and Former DPSG
Employees. Cadbury shall have and assume the obligations for all claims and liabilities relating
to workers compensation and unemployment compensation benefits for all Cadbury Business Employees
and Former Cadbury Employees. DPSG and

 

 

Cadbury shall make reasonable commercial efforts to provide
that workers compensation and unemployment insurance costs are not adversely affected for either of
them by reason of the Distribution.

ARTICLE 11

COMPENSATION MATTERS AND GENERAL BENEFIT AND EMPLOYEE

MATTERS

          Section 11.01 Restrictive Covenants in Employment and Other Agreements. To the
fullest extent permitted by the agreements and applicable law, Cadbury shall assign, or cause its
Affiliates to assign, to DPSG or one of its Affiliates as designated by DPSG all agreements
containing restrictive covenants (including but not limited to confidentiality and non-competition
provisions) between Cadbury (or a Cadbury Affiliate) and a DPSG Business Employee, with such
assignment to be effective no later than the Distribution Date. To the extent that assignment of
such agreements is not permitted, following the Distribution, DPSG and its Subsidiaries and
Affiliates shall be considered to be successors to Cadbury and its Subsidiaries and Affiliates for
purposes of, and third-party beneficiaries with respect to, all agreements containing restrictive
covenants (including but not limited to confidentiality and non-competition provisions) between
Cadbury (or a Cadbury Subsidiary or Affiliate) and DPSG Business Employees and between Cadbury (or
a Cadbury Subsidiary or Affiliate) and Cadbury Employees whom DPSG reasonably determines have
substantial knowledge of the DPSG Business, such that each of Cadbury, DPSG and their respective
Subsidiaries and Affiliates shall all enjoy the rights and benefits under such agreements
(including, without limitation, rights and benefits as a third-party beneficiary), with respect to
such Party’s and its respective Subsidiaries’ and Affiliates’ business operations;
provided, however, that (a) in no event shall Cadbury be permitted to enforce the
restrictive covenant agreements against DPSG Business Employees for action taken in their capacity
as employees of DPSG or its Subsidiaries, and (b) in no event shall DPSG be permitted to enforce
the restrictive covenants agreements of Cadbury Business Employees for action taken in their
capacity as employees of Cadbury or its Subsidiaries.

          Section 11.02 Severance. (a) Effective as of the Distribution Date, DPSG may
establish one or more severance plans and policies with respect to DPSG Business Employees as DPSG
deems appropriate in its discretion. Cadbury shall have no liability or obligation under any
Cadbury severance plan or policy with respect to DPSG Business Employees who remain employed or
whose employment terminates on or after the Distribution Date.

     (b) Following the Distribution Date, DPSG shall assume and shall be responsible for
administering all payments and benefits under the applicable Cadbury severance policies or any
termination agreements with Former DPSG Employees whose employment has terminated prior to the
Distribution Date for an eligible reason under such policies or in accordance with such agreements.

     (c) It is not intended that any DPSG Business Employee will be eligible for termination or
severance payments or benefits from Cadbury or its Subsidiaries or Affiliates as a result of the
transfer or change of employment from Cadbury to DPSG or their respective Subsidiaries or
Affiliates. Notwithstanding the preceding sentence, in the event that any such

 

 

termination or
severance payments or benefits become payable on account of such transfer, change or the refusal of
a DPSG Business Employee to accept employment with DPSG, DPSG shall indemnify Cadbury, and its
Subsidiaries and Affiliates, for the amount of such termination or severance payments or benefits.

          Section 11.03 Accrued Vacation Days Off. DPSG shall recognize and assume all
liability for all vacation, holiday, sick leave, flex days, personal days and Paid-Time Off,
including banked time accrued by DPSG Business Employees as of the Distribution Date and DPSG shall
credit each DPSG Business Employee with such accrual.

          Section 11.04 Leaves of Absence. DPSG will continue to apply the leave of absence
policies maintained by Cadbury to inactive DPSG Business Employees who are on an approved leave of
absence as of the Distribution Date. Leaves of absence taken by DPSG Business Employees prior to
the Distribution Date shall be deemed to have been taken as employees of DPSG.

          Section 11.05 Cadbury Obligations. DPSG and Cadbury plc agree that Cadbury plc shall
not, and shall cause Cadbury not to, take any actions that would materially and adversely impact
the ability of Cadbury to fulfill its obligations under this Agreement; provided that Cadbury plc
may at any time following the Distribution Date require Cadbury to assign to Cadbury plc all of
Cadbury’s rights and obligations under this Agreement in substitution for compliance by Cadbury plc
and Cadbury with the aforementioned obligation in this Section 11.05, and upon such assignment,
Cadbury plc shall assume all of Cadbury’s obligations under this Agreement.

ARTICLE 12

CANADIAN EMPLOYEE MATTERS

     The treatment of employee matters with respect to an Employee whose primary employer within
the Cadbury Group or the DPSG Group is or was an entity domiciled in Canada shall be set forth as
Appendix 2 to this Agreement.

ARTICLE 13

GENERAL PROVISIONS

          Section 13.01 Preservation of Rights to Amend. The rights of Cadbury or DPSG to amend
or terminate any plan, program, or policy referred to herein shall not be limited in any way by
this Agreement.

          Section 13.02 Confidentiality. Each Party agrees that any information conveyed or
otherwise received by or on behalf of a Party in conjunction herewith is confidential and is
subject to the terms of the confidentiality provisions set forth in the Separation Agreement.

          Section 13.03 Administrative Complaints/Litigation. Except as otherwise provided in
this Agreement, as of and after the Distribution Date, DPSG shall assume, and be

 

 

solely liable for,
the handling, administration, investigation and defense of actions, including, without limitation,
ERISA, occupational safety and health, employment standards, union grievances, wrongful dismissal,
discrimination or human rights and unemployment compensation claims, asserted at any time against
Cadbury, or DPSG or their respective Affiliates by any DPSG Business Employee or Former DPSG
Employee (including any dependent or beneficiary of any such Employee) or any other person, to the
extent such actions or claims arise out of or relate to employment or the provision of services
(whether as an employee, contractor, consultant, or otherwise) to or with the DPSG Business. To
the extent that any legal action relates to a putative or certified class of plaintiffs, which
includes both Cadbury Business Employees (or Former Cadbury Employees) and DPSG Business Employees
(or Former DPSG Employees) and such action involves employment or benefit plan related claims,
reasonable costs and expenses incurred by the Parties in responding to such legal action shall be
allocated among the Parties equitably in proportion to a reasonable assessment of the relative
proportion of Cadbury Business Employees (or Former Cadbury Employees) and DPSG Business Employees
(or Former DPSG Employees) included in or represented by the putative or certified plaintiff class.
The procedures contained in the indemnification and related litigation cooperation provisions of
the Separation Agreement shall apply with respect to each Party’s indemnification obligations under
this Section 13.03.

          Section 13.04 Reimbursement and Indemnification. The Parties hereto agree to
reimburse each other, within 60 days of receipt from the other Party of reasonable verification,
for all costs and expenses which each may incur on behalf of the other as a result of any of the
Welfare Plans, Pension Plans and Non-ERISA U.S. Benefit Arrangements and, as contemplated by
Section 11.02, any termination or severance payments or benefits. All liabilities retained,
assumed or indemnified against by DPSG pursuant to this Agreement, and all liabilities retained,
assumed or indemnified against by Cadbury pursuant to this Agreement, shall in each case be subject
to the indemnification provisions of the Separation Agreement. Notwithstanding anything to the
contrary, no provision of this Agreement shall require DPSG or any DPSG Subsidiary to pay or
reimburse to Cadbury or any Cadbury Affiliate any benefit-related cost item that DPSG or any DPSG
Subsidiary has previously paid or reimbursed to Cadbury or any Cadbury Affiliate.

          Section 13.05 Costs of Compliance with Agreement. Except as otherwise provided in
this Agreement or any other Distribution document, each Party shall pay its own expenses in
fulfilling its obligations under this Agreement.

ARTICLE 14

MISCELLANEOUS

          Section 14.01 Notices. Any notice, instruction, direction or demand under the terms
of this Agreement required to be in writing shall be duly given upon delivery, if delivered by
hand, facsimile transmission, or mail, to the following addresses:

	 	(a)	 	If to Cadbury

 

 

	 	 	 	25 Berkeley Square

London W1J 6HB

Facsimile: 44-20-7830-5015

Attention: Henry Udow, Esq.

                    Chief Legal Officer
	 
	 	 	 	With a copy to:
	 
	 	 	 	Shearman & Sterling LLP

599 Lexington Avenue

New York, NY 10022-6069

Telecopy: 212-848-6069

Attention: Creighton O’M. Condon, Esq.
	 
	 	(b)	 	If to Cadbury plc:
	 
	 	 	 	25 Berkeley Square

London W1J 6HB

Facsimile: 44-20-7830-5015

Attention: Henry Udow, Esq.

                    Chief Legal Officer
	 
	 	 	 	With a copy to:
	 
	 	 	 	Shearman & Sterling LLP

599 Lexington Avenue

New York, NY 10022-6069

Telecopy: 212-848-6069

Attention: Creighton O’M. Condon, Esq.
	 
	 	(b)	 	If to DPSG to:
	 
	 	 	 	5301 Legacy Drive

Plano, TX 75024

Facsimile: 972-673-8130

Attention: James. L. Baldwin, Jr.

                    General Counsel

          or to such other addresses or telecopy numbers as may be specified by like notice to the other
Party. All such notices, requests and other communications shall be deemed given, (a) when
delivered in person or by courier or a courier services, (b) if sent by facsimile transmission
(receipt confirmed) on a Business Day prior to 5 p.m. in the place of receipt, on the date of
transmission (or, if sent after 5 p.m., on the following Business Day) or (c) if mailed by
certified mail (return receipt requested), on the date specified on the return receipt.

          Section 14.02 Amendments; No Waivers. From and after the Distribution, any provision
of this Agreement may be amended or waived if, and only if, such amendment or

 

 

waiver is in writing
and signed, in the case of an amendment, by Cadbury and DPSG, or in the case of a waiver, by the
Party against whom the waiver is to be effective.

     (a) No failure or delay by any Party in exercising any right, power or privilege hereunder
shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any
other or further exercise thereof or the exercise of any other right, power or privilege. The
rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies
provided by law.

          Section 14.03 Successors and Assigns. The provisions of this Agreement shall be
binding upon and inure to the benefit of the Parties hereto and their respective successors and
permitted assigns; provided that neither Party may assign, delegate or otherwise transfer any of
its rights or obligations under this Agreement without the consent of the other Party hereto. If
any Party or any of its successors or permitted assigns (i) shall consolidate with or merge into
any other Person and shall not be the continuing or surviving corporation or entity of such
consolidation or merger or (ii) shall transfer all or substantially all of its properties and
assets to any Person, then, and in each such case, proper provisions shall be made so that the
successors and assigns of such Party shall assume all of the obligations of such Party under the
Separation Agreement.

          Section 14.04 Governing Law. This Agreement shall be construed in accordance with and
governed by the law of the State of New York, without regard to the conflicts of laws rules
thereof.

          Section 14.05 Counterparts; Effectiveness; Third-Party Beneficiaries. This Agreement
may be signed in any number of counterparts, each of which shall be an original, with the same
effect as if the signatures thereto and hereto were upon the same instrument. This Agreement shall
become effective when each party hereto shall have received a counterpart hereof signed by the
other party hereto. Neither this Agreement nor any provision hereof is intended to confer any
rights, benefits, remedies, obligations, or liabilities hereunder upon any
Person other than the parties hereto and their respective successors and permitted assigns.
No Employee or other current or former employee of Cadbury or DPSG or any Subsidiary or Affiliate
of either (or his/her spouse, dependent or beneficiary), or any other person not a party to this
Agreement, shall be entitled to assert any claim hereunder. Without limiting the foregoing, the
provisions of this Agreement are not intended to, nor shall they confer upon any Person other than
the Parties hereto any right or expectation as to the adoption, amendment, maintenance,
continuation, operation or funding of any employee benefit plan, policy or arrangement.

          Section 14.06 Entire Agreement. This Agreement and the other Distribution documents
constitute the entire understanding of the parties with respect to the subject matter hereof and
thereof and supersede all prior agreements, understandings and negotiations, both written and oral,
between the parties with respect to the subject matter hereof and thereof. Regardless of anything
else contained herein, the parties do not intend for this Agreement to amend any employee benefit
plans or arrangements.

          Section 14.07 Jurisdiction. Any Action seeking to enforce any provision of, or based
on any matter arising out of or in connection with, this Agreement or the transactions

 

 

contemplated
hereby may be brought in the United States District Court for the Southern District of New York or
any other New York State court sitting in New York County, and each of the Parties hereby consents
to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such
suit, action or proceeding and irrevocably waives, to the fullest extent permitted by law, any
objection which it may now or hereafter have to the laying of the venue of any such suit, action or
proceeding in any such court or that any such suit, action or proceeding which is brought in any
such court has been brought in an inconvenient forum. Process in any such suit, action or
proceeding may be served on any Party anywhere in the world, whether within or without the
jurisdiction of any such court. Without limiting the foregoing, each Party agrees that service of
process on such Party as provided in Section 14.01 shall be deemed effective service of process on
such Party.

          Section 14.08 Waiver of Jury Trial. The parties hereto hereby irrevocably waive any
and all right to trial by jury in any legal proceeding arising out of or related to this Agreement
or the transactions hereby contemplated.

          Section 14.09 Severability. If any one or more of the provisions contained in this
Agreement should be declared invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions contained in this Agreement shall not in
any way be affected or impaired thereby so long as the economic or legal substance of the
transactions contemplated hereby is not affected in any manner materially adverse to any Party.
Upon such a declaration, the Parties shall modify this Agreement so as to effect the original
intent of the Parties as closely as possible in an acceptable manner so that the transactions
contemplated hereby are consummated as originally contemplated to the fullest extent possible.

          Section 14.10 Survival. All covenants and agreements of the Parties contained in this
Agreement shall survive the Distribution Date indefinitely, unless a specific survival or other
applicable period is expressly set forth herein.

          Section 14.11 Captions. The captions herein are included for convenience of reference
only and shall be ignored in the construction or interpretation hereof.

          Section 14.12 Specific Performance. Each Party to this Agreement acknowledges and
agrees that damages for a breach or threatened breach of any of the provisions of this Agreement
would be inadequate and irreparable harm would occur. In recognition of this fact, each Party
agrees that, if there is a breach or threatened breach, in addition to any damages, the other
nonbreaching Party to this Agreement, without posting any bond, shall be entitled to seek and
obtain equitable relief in the form of specific performance, temporary restraining order, temporary
or permanent injunction, attachment, or any other equitable remedy which may then be available to
obligate the breaching Party (i) to perform its obligations under this Agreement or (ii) if the
breaching Party is unable, for whatever reason, to perform those obligations, to take any other
actions as are necessary, advisable or appropriate to give the other Party to this Agreement the
economic effect which comes as close as possible to the performance of those obligations
(including, but not limited to, transferring, or granting liens on, the assets of the breaching
Party to secure the performance by the breaching Party of those obligations).

 

 

          Section 14.13 Mutual Drafting. This Agreement shall be deemed to be the joint work
product of Cadbury and DPSG and any rule of construction that a document shall be interpreted or
construed against a drafter of such document shall not be applicable.

          Section 14.14 Operating Committee.

     (a) The parties shall use an operating committee (the “Operating Committee”) to implement the
terms of this Agreement. Each of Cadbury and DPSG shall appoint two employees to the Operating
Committee and designate one of such employees to be such party’s lead representative (each, a “Lead
Representative”) for the purpose of fielding queries from representatives of the relevant Group
concerning the implementation and ongoing operation of this Agreement. In addition, the Lead
Representatives shall have such other functions and responsibilities as may be determined by the
Operating Committee from time to time. The Operating Committee will oversee the implementation and
ongoing operation of this Agreement and shall attempt in good faith to resolve disputes between the
parties. Each of the parties shall have the right to (i) replace one or more of its Operating
Committee members at any time with employees or officers with comparable knowledge, expertise and
decision-making authority and (ii) designate an alternative Lead Representative.

     (b) The Operating Committee shall act by a majority vote of its members. If the Operating
Committee fails to make a decision, resolve a dispute or agree upon any necessary action, the
unresolved matters shall be handled by the dispute resolution procedures contained in the
Separation Agreement.

     (c) During the term of this Agreement, the full Operating Committee shall meet at such times
as may be required by either Lead Representative. Meetings of the Operating Committee may be in
person or via teleconference and shall be convened and held in accordance with such procedures as
the Operating Committee may determine from time to time.

          
Section 14.15. Consent to the Reduction. DPSG acknowledges
    that Cadbury plc is proposing to undertake the Reduction and
    DPSG, on behalf of itself and each member of the DPSG Group,
    (i) shall as soon as reasonably practicable after the date
    of this Agreement provide Cadbury plc with an executed letter of
    consent to the Reduction in the form attached as
    Exhibit 4.06 to the Separation Agreement and agrees that a
    copy of such letter may be presented to the Court as part of
    Cadbury plc’s application for confirmation by the Court of
    the Reduction; and (ii) undertakes that to the extent
    further consent is requested by Cadbury plc in order to effect
    the Reduction, DPSG shall (and shall procure that any member of
    the DPSG Group shall) give consent promptly on terms reasonably
    acceptable to Cadbury plc and, for the avoidance of doubt,
    such consents shall not be conditional on the provision of any
    third party guarantee or the deposit of any funds in any bank or
    escrow account or any other security, fact, event or thing. This
    consent is (and any consent given after the date of this letter
    shall be) irrevocable.

          
Section 14.16 Effect if
Distribution Does Not Occur. Notwithstanding anything in this
Agreement to the contrary, if the Separation Agreement or Transition Services Agreement is
terminated prior to the Distribution Date, this Agreement shall be of no further force and effect.

          
Section 14.17 Corporate Authorization. The officers of Cadbury and DPSG are hereby
authorized, empowered and directed, in the name and on behalf of each of Cadbury and DPSG,
respectively, to take or cause to be taken all such further action, to execute and deliver or cause
to be executed and delivered all such further agreements, certificates, instruments and documents,
to make or cause to be made all such filings with governmental or regulatory authorities, and to
pay or cause to be paid all such fees and expenses, in each case which shall in such officers’
judgment be deemed necessary, proper or advisable to effect and carry out the intent of this
Agreement, such determination to be evidenced conclusively by such officers’ execution and delivery
thereof or taking of action in respect thereto.

          IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed in their names by a
duly authorized officer as of the date first written above.

 

 

	 	 	 	 	 
	 	CADBURY SCHWEPPES, PLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	DR PEPPER SNAPPLE GROUP, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	CADBURY PLC, solely for the purposes of Section 11.05

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:EX-10.4

 

Exhibit 10.4

June 15, 2004

	 	 	 
	AGREEMENT:

	 	Dr Pepper/Seven-Up Bottling Group, Inc.

CROWN Cork & Seal USA, Inc (“Crown”) is pleased to offer the following Agreement for the supply of
aluminum 12 ounce beverage cans and ends (“Containers”), 202/211 x 413, with standard soft drink
specifications and printed with up to six color decoration. End units supplied shall be 202
diameter standard “LOE” or Crown’s 202 diameter “Super-End®” with complete conversion to
“Super-End®” ends expected to take place not later than April 1, 2006, as described
below.

TERM OF AGREEMENT: The term of the Agreement shall be for a period of * years beginning
January 1, 2005 and extending through *. The Agreement shall be automatically
renewed for an additional * year period (* through *);
provided, however, *.

LOCATIONS
& VOLUMES: Crown shall supply and Dr Pepper/Seven-Up agrees to purchase from Crown, *%
of their can and end requirements (except for the end requirements at Vernon and Buena Park,
CA and the * exception discussed below) for the following Dr Pepper/Seven-Up filling
locations:

	 	 	 	 
	Location	 	Estimated Annual Volumes
	Irving, TX
	 	 	*
	Houston, TX
	 	 	*
	Columbus, OH
	 	 	*
	Vernon, CA
	 	 	*
	Buena Park, CA
	 	 	*
	 	 	 	 
	Total Base Volume
	 	 	*

It is understood and agreed that at the Buena Park location, Crown’s can and end supply
shall be less than *%, to the extent that Dr Pepper/Seven-Up fills Containers for *, and * designates an alternative can maker to supply its
Container (can and end) requirements.

At the Vernon and Buena Park, CA locations, Crown shall supply a minimum of *% of the end
requirements in 2005. Beginning January 1, 2006, Crown shall supply *% of both the can
and end requirements at the Vernon and Buena Park locations (subject to the * can and
end exception mentioned above) with conversion to “SuperEnd®” expected to be
completed no later than April 1, 2006.

If any of the above can filling locations are closed and volume is moved to a replacement
filling location, Crown shall have the right to supply such relocated Container volume at

 

			
	*	 	Confidential treatment has been requested. The redacted material has been separately filed with
the Commission.

 

2

the replacement filling location pursuant to the terms of this Agreement. If Dr
Pepper/Seven-Up acquires an additional can filling operation(s) during the term of this
Agreement, Crown shall have the first right to supply such additional Container volume
pursuant to the terms and conditions of this Agreement, but not to the extent that Dr
Pepper/Seven Up is prohibited from awarding Crown such new volume as a result of prior
existing contractual obligations.

PRICING: The current prices (as of October 1, 2004) for the cans and ends supplied by Crown are:

	 	 	 	 	 	 	 	 	 
	 	 	with SuperEnd®	 	 	with LOE Ends	 
	12 ounce can bodies
	 	$*	 	$*
	202 diameter ends
	 	$*	 	$*
	 
	 	 	 	 	 	 
	Total Container
	 	$*	 	$*

In consideration of
Dr Pepper/Seven-Up entering into this new five year Agreement, the
selling prices will be * per thousand containers effective January 1, 2005 as
follows:

	 	 	 	 	 	 	 	 	 
	 	 	With SuperEnd®	 	 	with LOE Ends	 
	12 ounce can bodies
	 	$*	 	$*
	202 diameter ends
	 	$*	 	$*
	 
	 	 	 	 	 	 
	Total Container
	 	$*	 	$*

     The above “Base Prices” shall be adjusted beginning April 1, 2005 as described below. As of
January 1, 2006, all 202 diameter “LOE” ends supplied under this agreement shall be sold at
the “Super End®” end price shown above, provided that, Dr Pepper/Seven Up has
committed to a mutually agreeable “Super End®” conversion schedule for the Vernon and Buena
Park locations. Base coated can bodies require an upcharge of $* per thousand cans.

PAYMENT TERMS: Payments for Containers shall be due net * days from the date
of invoice — no cash discounts will be allowed.

SUPER-ENDS
®: Conversion of the various Dr Pepper/Seven Up filling
locations from “LOE” to “Super-End®” ends shall be completed on a
mutually agreeable schedule. The goal of both parties is for all locations to
be running “Super-End®” ends prior to April 1, 2006.

FREIGHT: The above prices include freight delivery costs to
the various Dr Pepper/Seven Up filling locations. Dr
Pepper/Seven Up 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 cans to the various Dr
Pepper/Seven Up filling locations from the following
can manufacturing facilities:

 

			
	*	 	Confidential treatment has been requested. The redacted material has been separately filed with
the Commission.

 

3

	 	 	 
	Dr Pepper/Seven Up

	 	Crown’s Can Supply
	Filling Locations

	 	Location (& Back-up)
	 

	 	 
	Irving, TX

	 	*
	Houston, TX

	 	*
	Columbus, OH

	 	*
	Vernon, CA

	 	*
	Buena Park, CA

	 	*

PRICE CHANGES: During the term of this Agreement, the Base Prices shall be adjusted pursuant to
the following four factors: *, as set forth below.

	 	(a)	 	* It is understood that * of the price
adjustment factors *. The January 1, 2005 Base Prices reflect *. The Base Prices will be adjusted on April 1st and October
1st of each contract year (beginning April 1, 2005) to reflect *. The April 1st
adjustments will be based on *. The October
1st adjustments will be based on *.
	 
	 	(b)	 	* The Base Prices will be adjusted
to reflect *.
	 
	 	(c)	 	* On April
1st of each contract year, *. The first such adjustment shall be April 1, 2005
and will reflect *.
	 
	 	(d)	 	* In the event that *

 

			
	*	 	Confidential treatment has been requested. The redacted material has been separately filed with
the Commission.

 

4

WAREHOUSING: During the term of this Agreement, Crown agrees to provide, at * to Dr
Pepper/Seven-Up, warehouse storage space of * in the Los Angeles, CA area at
a location that is mutually acceptable to both parties. Such warehouse space is to be
appropriate for the storage of filled beverage cans and bottles.

*

8-OUNCE CAN SUPPLY: Provided that Crown is competitive in price and other terms and conditions of
sale, Crown will be given the opportunity to supply Dr Pepper/Seven-Up’s requirements of
8-ounce aluminum (202/211 x 307) beverage cans and ends to the Dr Pepper/Seven-Up 8-ounce
filling locations in Texas.

OTTUMWA, IOWA SUPPLY: Upon mutual agreement, Crown will be given the opportunity to supply the Dr
Pepper/Seven-Up filling location in Ottumwa, Iowa with its requirements of 12-ounce aluminum
beverage Containers pursuant to the terms and conditions of this Agreement.

WARRANTIES: All of Crown’s standard container warranties and other terms and conditions of sale
shall apply to the cans and ends supplied under this Agreement.

CONFIDENTIALITY: Dr Pepper/Seven-Up and Crown agree to maintain strict confidentiality regarding
the contents of this Agreement including pricing and all other terms set forth herein.

PREVIOUS AGREEMENTS: This new Agreement shall supersede and replace any previous agreement between
the parties including the Sales Agreement dated December 18, 1997 in its entirety (including
the paragraph 8 reference to employees or consultants).

 

			
	*	 	Confidential treatment has been requested. The redacted material has been separately filed with
the Commission.

 

5

If you are in agreement with the terms and conditions 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/ 	 	 
	 	(Authorized Representative) 	 	 
	 	 	 	 
	 
	DR PEPPER / SEVEN-UP BOTTLING GROUP, INC.

 	 	 
	By:  	/s/ 	 	 
	Title:

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