Document:

EX-10.4

 

Exhibit 10.4

Settlement Agreement

Settlement Agreement dated June 28, 2005 between Bottling Group, LLC, 1 Pepsi Way, Somers, New York
10589 (“PBG”), and PepsiCo, Inc., 700 Anderson Hill Road, Purchase, New York 10577 (“PepsiCo”).

WHEREAS, five leading suppliers of high fructose corn syrup (“Fructose”) during the period from
July 1, 1991 to June 30, 1995 (the “Class Period”) have settled a class action lawsuit known as In
re: High Fructose Corn Syrup Antitrust Litigation Master File No. 95-1477 in the United States
District Court for the Central District of Illinois (the “Lawsuit”) for the total amount of $531
million;

WHEREAS, the bottling operations owned and operated by PepsiCo during the Class Period purchased
approximately $ 979 million of Fructose during the Class Period and as a result have a claim for
recovery from the Lawsuit settlement through Pepsi-Cola Commodities, Inc. (“Commodities”), a
PepsiCo subsidiary at that time which purchased Fructose for PepsiCo’s company owned bottling
operations and was transferred to PBG in connection with the formation of PBG in 1999; and

WHEREAS, each of PepsiCo and PBG claims that it is entitled to receive the recovery from the
Lawsuit relating to the Fructose purchases by Commodities and in order to settle this dispute the
parties have agreed to share the recovery from the Lawsuit settlement to the extent the recovery
relates to Fructose purchases by PepsiCo’s company owned bottling operations transferred to PBG,
all upon the terms and conditions set forth herein.

NOW, THEREFORE, the parties agree as follows:

     1. The parties agree to share equally (50/50) the proceeds from the settlement of the Lawsuit
related to Fructose purchases during the Class Period by the PepsiCo company owned bottling
business which were transferred to PBG when PBG was formed in 1999. In order to allocate the
portion of the total Fructose purchases by PepsiCo’s company owned bottling operations to the
bottling operations transferred to PBG, the parties have agreed to use case sales of PepsiCo
beverage products (in 8 oz. cases) sold by these bottling operations during the Class Period as the
measure for allocation. Based on the case sales of PepsiCo beverage products during the Class
Period for all of PepsiCo’s company owned bottling operations, the parties have agreed to allocate
91.6% of the total Fructose purchases by PepsiCo’s company owned operations to the bottling
operations transferred to PBG. As a result, PBG will be entitled to receive 45.8% (50% times
91.6%) of the total recovery related to the Fructose purchases by PepsiCo’s company owned bottling
operations and PepsiCo shall receive the remaining 54.2% of such total recovery.

     2. As the company which purchased Fructose for PepsiCo’s company owned bottling operations and
has made the formal claim related to these Fructose purchases to the claims administrator,
Commodities is expected to receive settlement payments from the claims administrator relating to
the Lawsuit settlement from time to time starting in the middle of 2005. Upon receipt of any such
payments, Commodities will immediately thereafter transfer to PepsiCo 54.2% of all funds it
receives with the remaining 45.8% to be retained by Commodities, as a subsidiary of PBG.

     3. The parties agree that this Settlement Agreement relates solely to the recovery from the
Lawsuit settlement for the Fructose purchases by PepsiCo’s company owned bottling operations during
the Class Period. This Settlement Agreement does not have any bearing on (i) any recoveries

 

 

by PBG of any other amounts from the Lawsuit settlement relating to Fructose purchased by the
PBG bottling businesses through or from third parties other than Commodities or other global
procurement entity or (ii) any recoveries by PepsiCo of any other amounts from the Lawsuit
settlement relating to the Fructose purchases by its businesses which were not company owned
bottling operations, such as Quaker or Tropicana.

IN WITNESS WHEREOF, the parties have executed this Settlement Agreement as of the date first set
forth above.

	 	 	 	 	 
	 	 	Bottling Group, LLC
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Steven M. Rapp
	 

	 	 	 	 
	 

	 	 	 	Managing Director
	 
	 	 	 	 
	 	 	PepsiCo, Inc.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Robert K. Biggart
	 

	 	 	 	 
	 

	 	 	 	Vice PresidentEX-10.1:

 

Exhibit 10.1

Settlement Agreement

Settlement Agreement dated June 28, 2005 between Bottling Group, LLC, 1 Pepsi Way, Somers, New York
10589 (“PBG”), and PepsiCo, Inc., 700 Anderson Hill Road, Purchase, New York 10577 (“PepsiCo”).

WHEREAS, five leading suppliers of high fructose corn syrup (“Fructose”) during the period from
July 1, 1991 to June 30, 1995 (the “Class Period”) have settled a class action lawsuit known as In
re: High Fructose Corn Syrup Antitrust Litigation Master File No. 95-1477 in the United States
District Court for the Central District of Illinois (the “Lawsuit”) for the total amount of $531
million;

WHEREAS, the bottling operations owned and operated by PepsiCo during the Class Period purchased
approximately $ 979 million of Fructose during the Class Period and as a result have a claim for
recovery from the Lawsuit settlement through Pepsi-Cola Commodities, Inc. (“Commodities”), a
PepsiCo subsidiary at that time which purchased Fructose for PepsiCo’s company owned bottling
operations and was transferred to PBG in connection with the formation of PBG in 1999; and

WHEREAS, each of PepsiCo and PBG claims that it is entitled to receive the recovery from the
Lawsuit relating to the Fructose purchases by Commodities and in order to settle this dispute the
parties have agreed to share the recovery from the Lawsuit settlement to the extent the recovery
relates to Fructose purchases by PepsiCo’s company owned bottling operations transferred to PBG,
all upon the terms and conditions set forth herein.

NOW, THEREFORE, the parties agree as follows:

     1. The parties agree to share equally (50/50) the proceeds from the settlement of the Lawsuit
related to Fructose purchases during the Class Period by the PepsiCo company owned bottling
business which were transferred to PBG when PBG was formed in 1999. In order to allocate the
portion of the total Fructose purchases by PepsiCo’s company owned bottling operations to the
bottling operations transferred to PBG, the parties have agreed to use case sales of PepsiCo
beverage products (in 8 oz. cases) sold by these bottling operations during the Class Period as the
measure for allocation. Based on the case sales of PepsiCo beverage products during the Class
Period for all of PepsiCo’s company owned bottling operations, the parties have agreed to allocate
91.6% of the total Fructose purchases by PepsiCo’s company owned operations to the bottling
operations transferred to PBG. As a result, PBG will be entitled to receive 45.8% (50% times
91.6%) of the total recovery related to the Fructose purchases by PepsiCo’s company owned bottling
operations and PepsiCo shall receive the remaining 54.2% of such total recovery.

     2. As the company which purchased Fructose for PepsiCo’s company owned bottling operations and
has made the formal claim related to these Fructose purchases to the claims administrator,
Commodities is expected to receive settlement payments from the claims administrator relating to
the Lawsuit settlement from time to time starting in the middle of 2005. Upon receipt of any such
payments, Commodities will immediately thereafter transfer to PepsiCo 54.2% of all funds it
receives with the remaining 45.8% to be retained by Commodities, as a subsidiary of PBG.

 

 

     3. The parties agree that this Settlement Agreement relates solely to the recovery from the
Lawsuit settlement for the Fructose purchases by PepsiCo’s company owned bottling operations during
the Class Period. This Settlement Agreement does not have any bearing on (i) any recoveries by PBG
of any other amounts from the Lawsuit settlement relating to Fructose purchased by the PBG
bottling businesses through or from third parties other than Commodities or other global
procurement entity or (ii) any recoveries by PepsiCo of any other amounts from the Lawsuit
settlement relating to the Fructose purchases by its businesses which were not company owned
bottling operations, such as Quaker or Tropicana.

IN WITNESS WHEREOF, the parties have executed this Settlement Agreement as of the date first set
forth above.

	 	 	 	 	 	 	 
	 	 	Bottling Group, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 /s/ Steven M. Rapp      	 	 
	 

	 	 	 	Managing Director
	 	 
	 
	 	 	 	 	 	 
	 	 	PepsiCo, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Robert K. Biggart       	 	 
	 

	 	 	 	Vice President<PAGE>
                                                                    EXHIBIT 10.1

                                                                               5
<PAGE>
                  SECOND LEASE AMENDMENT & EXTENSION AGREEMENT

     THIS SECOND LEASE AMENDMENT & EXTENSION AGREEMENT (the "Second Amendment"),
is made as of the 13th date of July 2005, by and between ZPF, L.L.C., a new
Jersey limited liability company having an address c/o Trillium Realty
Advisors, L.L.C., 3 Princeton Avenue, Suite 3 C, Hopewell, NJ 08525
("LANDLORD"), and CELL & MOLECULAR TECHNOLOGIES, INC., a new Jersey
corporation, having an address at 580 Marshall Street, Phillipsburg, New Jersey
08865 ("TENANT").

     WHEREAS, landlord and Tenant have previously entered into a certain lease
Agreement, dated as of _______________2001 (the "Original Lease"), as amended
by a certain First Amendment to lease Agreement, dated as of ____________, 2002
(the "First Amendment") (the Original lease and the First Amendment are
hereinafter referred to collectively as the "Lease"), pursuant to which
landlord leased to Tenant, and the Tenant leased from landlord, a certain
portion of the building known as 445 Marshall street, Phillipsburg, new
Jersey; and

     WHEREAS, the Landlord and Tenant desire to further amend and extend the
Lease upon the terms and conditions hereinafter set forth.

     NOW, THEREFORE, in consideration of the mutual covenants, terms and
conditions set forth herein, the parties hereto agree as follows:

     1.  TERM. Subject to the provisions hereof, as of August 10, 2005
(hereinafter called the "Commencement Date"), the Term of the Lease shall be
amended and extended until August 31, 2006.

     2.  RENT.  As of the Commencement Date, the Rent shall be amended to read,
and Tenant shall pay to Landlord, the following amounts:

<TABLE>
<CAPTION>

ANNUAL FIXED RENT                                 MONTHLY FIXED RENT
-----------------                                 ------------------
<S>                                               <C>
$149,111.76 (@ $15.89 RSF for office space)            $12,425.98
$ 15,684.84 (@8.46 RSF for storage space)              $ 1,307.07
                                                       ----------
$165,796.60                                            $13,733.05

</TABLE>

     3.  NO OPTION TO RENEW.  tenant shall not have any option to renew or
extend the Lease and any exercise, or purported exercise, of an option to
extend the term of the Lease by tenant is void and of no force and effect...

<PAGE>

     4.     PARKING. Landlord shall have the right to designate up to fifteen
(15) parking spaces, as depicted on Exhibit A amended hereto, for the exclusive
use of other tenants in the Building.

     5.     MISCELLANEOUS.

            (a) By the execution hereof, Tenant acknowledges the full and
faithful performance by landlord of the obligations to be performed by it
under the Lease to the date hereof.

            (b) In the event of any conflict between the terms of the Lease and
this Second Amendment, the terms of this Second Amendment shall prevail. Except
as specifically provide herein, all of the terms, provisions, covenants and
conditions of the Lease, as heretofore amended, are hereby ratified and
confirmed and shall continue in full force and effect.

            (c) The captions and headings throughout this Second Amendment are
for convenience and reference only, and the same shall in no way be held or
deemed to define, limit, describe, explain, modify, amplify or add to the
interpretation, construction or meaning of any provisions or the scope or
intent hereof, nor in any way affect this Second Amendment.

            (d) The individuals executing this Second Amendment hereby
represent and warrant that they are empowered and duly authorized to so execute
this Second Amendment on behalf of the parties they represent.

            (e) All terms not defined in this Second Amendment shall have the
respective meanings ascribed to them in the Lease.

            (f) This Second Amendment shall be binding upon the inure to the
benefit of the parties hereto their respective heirs, personal representatives,
successors and assigns.

                   [SIGNATURES APPEAR ON THE FOLLOWING PAGE]

                                       2
<PAGE>
     IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment
on the day and year first written above.

                    LANDLORD:     ZPF, L.L.C.

/s/ Sandi Gomez             By: /s/ Paul McArthur
--------------------           --------------------
WITNESS                        Name:
                               Title:

                         TENANT:   Cell & Molecular Technologies, Inc.

/s/ Douglas S. Danzig       By: /s/ Joseph K. Pagano
---------------------          ----------------------
WITNESS                        Name: Joseph K. Pagano
                               Title: Chairman

                                      3

                             Second Lease Amendment & Extension Agreement 071105
<PAGE>
                                   EXHIBIT A
<PAGE>
                 [MAP OF EXISTING JOURNAL OF COMMERCE BUILDING]

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