Transition Services Agreement between Cadbury Schweppes plc and Dr Pepper Snapple Group, Inc. (May 1, 2008)
Cadbury Schweppes plc and Dr Pepper Snapple Group, Inc. entered into this agreement on May 1, 2008, following the separation of Cadbury into two independent, publicly traded companies. Under this agreement, each company will provide certain transitional services to the other for a limited period after the separation. The agreement outlines the types of services to be provided, the standard of care required, and the handling of confidential information. Both parties are obligated to cooperate, obtain necessary consents, and use reasonable efforts to ensure smooth operations during the transition period.
-2-
-3-
-4-
-5-
-6-
-7-
-8-
-9-
-10-
-11-
-12-
-13-
London W1J 6HB
Facsimile: 44-20-7830-5015
Attention: Henry Udow, Esq.
Chief Legal Officer
389 Interpace Parkway
Parsippany, NJ 07054
Facsimile: (973)  ###-###-####
Attention: Thomas Whitten
Plano, TX 75024
Facsimile: (972)  ###-###-####
Attention: James L. Baldwin, Jr.
General Counsel
5301 Legacy Drive
Plano, TX 75024
Facsimile: (972)  ###-###-####
Attention: Angie Wallander
-14-
-15-
-16-
CADBURY SCHWEPPES PLC | ||||
By: | /s/ Henry Udow | |||
Name: | Henry Udow | |||
Title: | Chief Legal Officer and Group Secretary | |||
DR PEPPER SNAPPLE GROUP, INC. | ||||
By: | /s/ James L. Baldwin | |||
Name: | James L. Baldwin | |||
Title: | Executive Vice President and Secretary | |||
1. | Corporate Group Finance |
Type of | Notice Required | ||||||
Service | Description of Specific Services | Term | to Terminate | ||||
Process | Cadbury plc (Cadbury) will make the relevant personnel (currently Dominic Blakemore and Pauline Caywood) reasonably available to consult with the new DPS finance team. | 3 months | 30 days |
2. | Corporate Group HR Benefits |
Type of | Notice Required | |||||
Service | Description of Specific Services | Term | to Terminate | |||
System Access | Cadbury will provide access to [ILLEGIBLE] until implementation of new website for DPS Comp and Benefits. DPS Comp and Benefits is targeted to implement a new benefits administration provider (Hewitt) in June 2008. As such, they will need to maintain the Cadbury branding on the existing provider website [ILLEGIBLE] until they complete the conversion process in June 2008. | 2 months | 30 days | |||
ESPP Administration | Cadbury will provide access to DPS employees to view their ESPP awards on the UBS site until such time as they have been exercised or lapse under the ESPP rules. | Up to 12 months | 30 days | |||
Settlement of ESPP awards | Cadbury will settle all ESPP options exercised by DPS employees as a result of the demerger. These awards will be settled in Cadbury plc ADRs. | Up to 12 months | 30 days | |||
Discretionary Share Option Administration | Cadbury will provide access to DPS employees to view their discretionary share option awards on the UBS site until such time as they have been exercised or lapse under the discretionary share option plan rules. DPS to pay the £20 per head annual administration fee to UBS in respect of these records. | Up to 12 months | 30 days | |||
Settlement of Discretionary Share Options for DPS colleagues | Cadbury will settle all discretionary share options exercised by DPS employees within 12 months of the Distribution Date. These options will be settled in Cadbury plc Ordinary Shares (either new issue or from the Cadbury employee benefit trust). | Up to 12 months | 30 days | |||
PSP/HIPRA/ ISAP Administration | Cadbury will provide access to DPS employees to view their PSP/HIPRA/ISAP awards on the UBS site until such time as these records are exported to the new DPS share plan administrators. DPS to pay the costs of exporting these records to a new administration provider. This service will not extend past 31 December 2008. As part of this service these awards will be converted and shown as equivalent numbers of shares of DPS Common Stock on the UBS system. DPS to pay UBS fees for carrying out this conversion and updating their records. | Not later than 12/31/08 | 30 days | |||
Settlement of conditional ISAP awards vesting before 31 December 2008 | Cadbury will settle any ISAP conditional awards held by DPS employees that vest prior to 31 December 2008 using DPS Common Stock held in the Cadbury Employee Benefits Trust. DPS will provide tax calculations and operate tax reporting and withholding on the vesting of these awards. DPS will communicate with the recipients of these awards upon vesting. | Up to 8 months | 30 days | |||
BSRP and LTIP Administration | Cadbury will provide spreadsheets to DPS detailing subsisting BSRP and LTIP awards held by DPS employees at the Distribution Date. These awards will be administered by DPS from the Distribution Date. | Upon Demerger | 30 days | |||
Provision of records detailing the share conversion calculations | Cadbury will provide to DPS excel spreadsheets detailing the conversion calculations in respect of the DPS employees LTIP, BSRP, PSP, HIPRA and ISAP awards converting from CS Ordinary Shares to shares of DPS Common Stock. | Upon Demerger | 30 days |
2
Type of | Notice Required | |||||
Service | Description of Specific Services | Term | to Terminate | |||
Provision of nominee shareholding services | All DPS employees who hold shares in the UBS roll-over account will be included as active records on the UBS system and as such Cadbury will incur an annual administration fee. These records may remain on UBS but must be transferred to alternative nominee holdings by 31 December 2008. | Up to 8 months | 30 days |
3. | Corporate Group Intellectual Property (Americas) |
Notice | ||||||
Type of | Required to | |||||
Service | Description of Specific Services | Term | Terminate | |||
Intellectual Property Services / Documentation | Cadbury will use reasonable endeavors, following receipt of a request from DPS, to make appropriate Cadbury plc Group IP personnel available to clarify intellectual property issues arising out of work done prior to the Distribution Date (for example assistance to try to identify information that relate to files transferred), provided that such assistance shall be provided within 60 days of the Distribution Date and not exceed a total of 25 hours. | 2 months | None |
4. | Corporate Group Legal Americas |
Notice | ||||||
Type of | Required to | |||||
Service | Description of Specific Services | Term | Terminate | |||
Processes and Consulting Services/ Documentation | 1. Cadbury will make the relevant Cadbury plc Group Secretariat personnel (currently John Mills, John Hudspith and Victoria Hames) available to clarify, advise and provide knowledge transfer in the following areas: | 3 months | None | |||
Stock Transfer Agent services | ||||||
Stock disbursement processes including the Odd Lot Facility | ||||||
Shareholder communications | ||||||
Corporate reorganization known as the scheme of arrangement | ||||||
2. Cadbury will provide a copy of the executed Project Bounce transaction documents and access to the Project Bounce website. |
5. | Corporate Audit |
Notice | ||||||
Type of | Required to | |||||
Service | Description of Specific Services | Term | Terminate | |||
System Access | Cadbury Audit will provide access to and data extraction of DPS files from the Group (Central) Audit database in Lotus Notes as well as the shared drive. | 2 months | None |
3
6. | Tax |
Type of | Notice Required | |||||
Service | Description of Specific Services | Term | to Terminate | |||
Processes | Cadbury will make provision for services regarding taxes, including legal organizations, outstanding audits and forecasting assistance. The monthly rate has been finalized based on the percentage of time to be spent by Joe Leuzzi, Kimberly Sweeney and Lisa Longo performing these services. | 20 months | 30 days | |||
The parties further acknowledge and agree that the monthly rate for these services was based on the assumption that Cadbury would provide 210 hours of these services per month. If the average amount of these services actually provided by Cadbury for the first three months (or any three-month period thereafter) exceeds 230 hours per month, the parties shall negotiate in good faith to determine the appropriate increase in the monthly rate for these services. If the time spent on these services averages less than 190 hours in any 3 month period, any of the three individuals listed above is no longer employed by Cadbury or it becomes commercially unreasonable for any of such individuals to perform the services contemplated by this service, the parties shall renegotiate in good faith for an appropriate change to the level of services required by this service or to the costing of this service. If the services provided by Cadbury reaches an average of 210 hours per month, for any three-month period, Cadbury shall notify DPS and DPS shall have the option, but shall not be obligated, to either defer such services or discontinue such services that are provided by Cadbury. | ||||||
Processes | Cadbury will assume responsibility for preparing the 2007 federal and state and certain other tax returns of the DPS Group (or any member of the DPS Group) as per the provisions of Section 3 the Tax Sharing and Indemnification Agreement (the TS1A). | N/A | N/A |
4
7. | Treasury |
Type of | Notice Required | |||||
Service | Description of Specific Services | Term | to Terminate | |||
Process | Cadbury will make the relevant personnel (currently Sarah Boyce and Ann Svoboda) reasonably available to consult with the DPS Treasury team. | 6 months | 30 days |
8. | North American HR |
Type of | Notice Required | |||||
Service | Description of Specific Services | Term | to Terminate | |||
Data Access | Cadbury will provide access with full functionality as prior to the Distribution Date to I-grasp, the global talent database system. | 8 months | NA |
9. | NoLA Office and Administrative Services |
Notice | ||||||
Type of | Required to | |||||
Service | Description of Specific Services | Term | Terminate | |||
Puerto Rico office lease | Cadbury Adams Puerto Rico will continue to lease office space to Motts Inc. for an additional month after the Distribution Date. This extension shall be governed by the terms of the 2006 Lease Agreement between Motts Inc. and Cadbury. | 1 month | None | |||
Dominican Republic One employee in Cadbury Adams payroll | Plinio Hernandez will remain in Cadbury Adams Dominicana S.A.s payroll for an additional month after the Distribution Date. | 1 month | None |
5
10. | Canadian Services |
Notice | ||||||
Type of | Required to | |||||
Service | Description of Specific Services | Term | Terminate | |||
1. These services are required until the licence described below can be transferred. All services to be provided in accordance with the site licence (the Site Licence) issued to Cadbury Beverages Canada, Inc. (CBCI) by the Canadian Department of Healths Natural Health Products Directorate (the Natural Health Products Directorate) for the Product Licence Applications (as defined in Section 2 below) to permit the manufacturing, packaging, labelling and importing activities for the products at those facilities authorized by the Vendors current applicable site licences. CBCI will use all reasonable efforts to maintain any required insurance with respect to the Site Licence and maintain, renew and otherwise keep in place all necessary consents, licenses and approvals required to provide the Site Licence for the term of this Agreement. CBCI will not submit to Health Canada any regulatory reports, correspondence, documentation, records or other information in relation to the Site Licence without providing Canada Dry Motts Inc. (CDMI) an opportunity to review and comment on same, which it shall do in a timely manner. CBCI will take all reasonable actions required to respond to any inquiries related to the Site Licence or to the products covered by the Site Licence. | Until services are completed | 30 days | ||||
2. These services are required until a licence can be transferred. All services to be provided in accordance with the product licence applications in respect of the Accelerade advanced sports drink, Coolah Energy Drink and apple sauce products (the Product Licence Applications) submitted to the Natural Health Products Directorate. CBCI will use all reasonable efforts to maintain any required insurance with respect to the Product Licence Applications and maintain, renew and otherwise keep in place the submission numbers issued by the Natural Health Products Directorate in connection with the Product Licence Applications. CBCI will take all reasonable actions required to respond to any inquiries related to the Product Licence Applications. | Until services are completed | 30 days | ||||
3. In the event that the existing banking accounts and account numbers related to existing payroll operations cannot be immediately renamed or reassigned to CDMI, CBCI will fund these accounts in a timely manner for the amount of each net payroll as such funds are transmitted to CBCI by CDMI on a bi-weekly basis for purposes of paying CDMI employees and all related employee and employer taxes. | 5 months | 30 days | ||||
4. CBCI will use all commercially reasonable efforts to assist, support and facilitate CDMI in securing all necessary employer, tax or other identification numbers as required by CDMI to conduct business in Canada and in all provinces of Canada. | 2 months | 30 days |
6
11. | IT Management Advisory Services |
Type of | Notice Required | |||||
Service | Description of Specific Services | Term | to Terminate | |||
Advisory Services | As Lalit Gulati retains institutional knowledge of the pre-separation Cadbury organization and operating environment as well as significant knowledge of the external providers with which DPS will be interacting, DPS may request the resource ad hoc to provide assistance in the following areas: | 8 months | 30 days | |||
Guidance on forward looking strategy | ||||||
Commercial knowledge of vendor agreements | ||||||
Organizational knowledge of vendor partners | ||||||
Perspective on past decisions | ||||||
Domain Experience and Expertise | ||||||
Cadbury will make Lalit Galati available to deliver intellectual and advisory services to DPS according to the terms of this Agreement. |
a) | No travel is to be undertaken by Lalit Galati in support of this Service. | ||
b) | Lalit Galati will not be asked to be a signatory or accountable party in any contractual agreements entered into by DPS. | ||
c) | Lalit Galati will provide only Institutional and Domain knowledge. No activity in terms of HR decisions, input, or communications is in scope. | ||
d) | Lalit Galati will not spend greater than: |
(1) | 2 hours per week in support of this activity; or | ||
(2) | 26 total hours. |
7
Notice | ||||||
Type of | Required to | |||||
Service | Description of Specific Services | Term | Terminate | |||
Advisory Services | The IT organization of DPS will be entitled to request and utilize the knowledge capital / system expertise of support resources of Cadbury. This request is only to be made in the event of critical (Severity 1 or Severity 2) incidents requiring immediate resolution to allow the impacted business to operate. | 8 months | 30 days | |||
Cadbury is not obligated to provide any resource assistance to DPS. However, if formally requested, the appropriate Cadbury Function Head may allow their resources to assist in resolving the issue at hand. In such cases, this Service is meant to ensure that proper cost recovery is provided. Should the request be granted, the resources time will be billed at $80/hour. |
Type of | Notice Required | |||||
Service | Description of Specific Services | Term | to Terminate | |||
Network Services | As part of existing separation activities, the IT team has instituted a Trust between the Cadbury and DPS Active Directory domains. This allows specified access across and between the two distinct domains. | 4 months | 30 days | |||
Monthly charges will not begin until network separation is complete. |
8
Type of | Notice Required | |||||
Service | Description of Specific Services | Term | to Terminate | |||
System Access | User Access PLC Instance | 3 months | 30 days | |||
~ 60 DPS Hyperion users will require access to the Cadbury HFM system through August 14, 2008. | ||||||
Users shall be authorized to: | ||||||
access the system with pre-separation security levels | ||||||
enter and review DPS financial data | ||||||
save and print reports | ||||||
execute any other activities that they could carry out before legal separation. | ||||||
Cadbury IT will ensure all existing security profiles are retained and ensure continued access before and following final network separation. Any tradeoffs in cost / functionality of the final access solution will be agreed with the business users. | ||||||
DPS resources only require write access through the entry of the May 7th input, which should be complete by the end of June. If Cadbury chooses, they may convert access to READ ONLY following that entry. | ||||||
System Support | Hyperion Support and Consolidation | 8 months | 30 days | |||
Cadbury Finance will provide operational support and assistance in the transfer of knowledge to DPS. Cadbury will make the relevant personnel (currently Carl Waller) reasonably available to consult with the new DPS Hyperion team. This is to include advisory services as well as system interaction. Subsequent to May 30, 2008, support and advisory services provided by Cadbury will be billed at £100 per hour. | ||||||
System Support | In the event that DPS Hyperion Instance is unable to support the 4+8 forecasting activities Cadbury will make their system available for this purpose. The appropriate set up and administration will be the responsibility of the Cadbury Finance team. | 2 months | 30 days | |||
In the event that this occurs, the applicable people will enter into a confidentiality agreement on customary terms |
9
Notice | ||||||
Type of | Required to | |||||
Service | Description of Specific Services | Term | Terminate | |||
Technical Services | As of the Distribution Date, there will be a number of activities still under way to fully split the DPS and Cadbury systems. All costs for these activities are borne in the Separation budget and any DPS costs are part of the final settlement of outstanding intercompany balances that will be settled prior to the Distribution Date. Therefore, no costs will be billed by either party for this Service. | 3 months (Or final technical separation) | None | |||
This Service is intended to ensure that the following activities are understood by both DPS and CS to be ongoing and to commit that both IT organizations are committed to completion per the planned timeline. | ||||||
Ongoing activities include: | ||||||
Separation of the Spend Management System (SMS) for DPS | ||||||
Completion of implementation of MSSI Copy IXOS functionality | ||||||
Completion of AD Migration activities for Finance Users & Applications | ||||||
Standup of the DMZ, Separation of the Data Center, Breaking of the | ||||||
Network (addressed fully in a separate Service) | ||||||
Deletion of data in separated systems (GDS, Trouble Ticketing Systems) | ||||||
Streamserve Form Testing | ||||||
Lotus Notes DBs SARD, RAM |
Notice | ||||||
Type of | Required to | |||||
Service | Description of Specific Services | Term | Terminate | |||
Support Services | DPS IT will be entitled to request and utilize the knowledge capital/system expertise of support resources of CS IT. This request is only to be made in the event of critical Severity 1 and Severity 2 incidents requiring immediate resolution to allow the impacted business to operate. | 1 month | N/A | |||
The Service would keep the combined DPS and Cadbury network operations team as it is until May 31st. This will give the DPS Operations team time to get its resources trained and on-boarded. | ||||||
DPS and Cadbury will continue the current mode of Network Operations support including 7 X 24 on-call rotations for Data and Voice issues. Once the Ticket queues have been separated, if both teams do not have access to the other queues, the Tickets will updated via email exchange between the groups |
10
Type of | Notice Required to | |||||
Service | Description of Specific Services | Term | Terminate | |||
Facility Space | DPS will provide space for 20 Cadbury employees in DPS offices at 900 King Street, Rye Brook, NY. | 5 months | 5 months | |||
Note: DPS is fully committed to the lease based on these colleagues remaining in the building through year end. |
Benefits & Compensation Services | DPS will provide a reasonable level of support and consultation for: leave of absence processing support, including being reasonably available to provide consultation; ESPP and share plan administration; and vendor management issues. | 1 month | 30 days | |||
Benefits & Compensation Services | DPS will provide a reasonable level of open enrollment processing support, which shall include being reasonably available to provide consultation. | 1 month | 30 days | |||
Benefits & Compensation Services | DPS will provide a reasonable level of AIP processing support, which shall include being reasonably available to provide consultation. | 1 month | 30 days | |||
Benefits & Compensation Services | DPS will provide a reasonable level of Merit processing support, which shall include being reasonably available to provide consultation. | 1 month | 30 days | |||
Benefits & Compensation Services | DPS will make its benefits/compensation manager (currently Brian Beasley) reasonably available to provide consultation relating to benefits and compensation administration. | 1 month | 30 days | |||
Payroll and Workmans Comp Services | DPS will provide payroll and compensation/benefits for workers compensation claims. Note: 3 years is for consultation and cooperation on tax and insurance claims. It is not an intense level of longer term services | 3 years | 6 months | |||
Medical Claim Payments | Any actual medical claim payments for Cadbury will be paid by DPS and subsequently invoiced directly to Cadbury in accordance with the monthly billing schedule of this Agreement. | 8 months | 30 days |
11
Type of | Notice Required to | |||||
Service | Description of Specific Services | Term | Terminate | |||
Benefits Processes | DPS Benefits (United States) will provide a reasonable level of support to: provide leave of absence processing (STD/LTD/FMLA); | 8 months | 30 days | |||
(United States) | provide new retiree administration for medical, pension and 401(k); | |||||
provide benefits support reasonably necessary to assist with Cadburys benefits groups organizational design, selection and training/transition; | ||||||
manage Health & Welfare providers, including negotiating vendor contracts and fees (medical, dental, etc); monitoring SLAs; and resolving vendor and participant issues; | ||||||
assist in the initial creation of and maintain plan compliance documents/governance under federal, state and local laws, including plan audits, actuarial evaluations, and 5500s (tax returns); and provide SOX oversight and conduct governance meetings as required; | ||||||
manage Retirement Plan administrators & call centers, including negotiate contracts, fees; monitor SLAs; and resolve vendor and participant issues; and | ||||||
assist in the initial creation of and monitor benefit plan budgets; execute benefit plan vendor payments per contract and federal law; and provide summary billings to client. | ||||||
Benefits Consulting & Services (United States) | DPS Benefits (United States) will conduct enrollments (including providing for payment and deferral elections) for nonqualified plans; administer plans per plan documents and federal laws; and resolve related issues. | 8 months | 30 days | |||
Benefits Consulting & Services (United States) | DPS Benefits (United States) will provide a reasonable level of consulting to Cadbury relating to benefits matters for labor relations. | 8 months | 30 days | |||
Benefits Processes (Canada) | DPS Benefits (Canada) will provide a reasonable level of services to: conduct annual health & welfare benefits enrollment for active and inactive employees, including: | 8 months | 30 days | |||
review plans/rates and obtain client approval; prepare employee communication; | ||||||
support employee meetings as required; | ||||||
vendor set-up, testing and coordination with payroll; | ||||||
manage Health & Welfare providers, including to negotiate vendor contracts and premiums/fees (medical, dental, etc); monitor SLAs; resolve issues; conduct quarterly reviews as required; and implement union contract changes as required; | ||||||
manage Health & Welfare benefit administrator/call center vendor, including to negotiate contracts and rates; monitor SLAs; and resolve related issues. This will also include leave of absence administration processing; | ||||||
review and update plan governance as required post-separation and maintain plan compliance documents under provincial and local laws. This will include plan audits, actuarial evaluations, and required federal filings with the Financial Services Commission of Ontario; | ||||||
manage Retirement Plan administrators & call centers (negotiate contracts, rates; monitor SLAs; resolve vendor and participant issues); | ||||||
assist in the initial creation of and monitor benefit plan |
12
Type of | Notice Required to | |||||
Service | Description of Specific Services | Term | Terminate | |||
budgets; execute benefit plan vendor payments per contract and federal law; and provide summary billings to client; | ||||||
conduct enrollments (including providing for payment and deferral elections) for nonqualified plans; administer plans per plan documents and federal laws; and | ||||||
support union/labor relations activities as required. | ||||||
Benefits Processes (Mexico) | DPS Benefits (Mexico) will review and update plan governance as required and maintain plan compliance documents under local laws, including plan financial reporting, audits and actuarial valuations. | 8 months | 30 days | |||
Benefits Processes (Puerto Rico) | DPS Benefits (Puerto Rico) will conduct annual health & welfare benefits enrollment for active and inactive employees, including: review plans/rates and obtain client approval; | 8 months | 30 days | |||
prepare employee communication; | ||||||
support employee meetings as required; and | ||||||
vendor set-up; testing and coordination with payroll. | ||||||
Benefits Consulting and Services (Puerto Rico) | DPS Benefits (Puerto Rico) will: manage Health & Welfare providers, including negotiating vendor contracts and premiums/fees (medical, dental, etc); monitoring SLAs; resolving issues; and conducting quarterly reviews as required; | 8 months | 30 days | |||
review and update plan governance as required post- separation; | ||||||
manage Retirement Plan administrators & call centers, including negotiating contracts and rates; monitoring SLAs; and resolving related issues; | ||||||
assist in the initial creation of and monitor benefit plan budgets; | ||||||
execute benefit plan vendor payments per contract and federal law; and provide summary billings to client. |
Type of | Notice Required | |||||
Service | Description of Specific Services | Term | to Terminate | |||
Compensation Processes | DPS will provide administrative services relating to stock option exercising and ESPP elections, subject to the placement of the relevant personnel post-separation. | 8 months | 30 days | |||
Compensation Processes | Stock Programs: DPS will continue to deliver the files relating to stock awards to UBS upon the exercise of stock awards by employees. | 12 monuhs | 30 days |
Type of | Notice Required | |||||
Service | Description of Specific Services | Term | to Terminate | |||
Process | DPS will make the relevant personnel (currently Steve Alexander, Diane Hicks and Robert Franklin) reasonably available to consult with the new finance team. | 3 months | 30 days |
13
Type of | Notice Required | |||||
Service | Description of Specific Services | Term | to Terminate | |||
Processes | DPS will provide reasonable support and information regarding open claims, including reasonable access to DPS personnel with specific knowledge of the incident, witnesses, legal counsel, human resource, consumer relations, compensation & benefits and payroll. | 6 months (1 person 3 days/month) | 3 months |
Type of | Notice Required | |||||
Service | Description of Specific Services | Term | to Terminate | |||
Tax Returns | DPS will assume responsibility for preparing the 2008 federal, state and certain other tax returns of the DPS Group (or any member of the DPS Group) as per the provisions of Section 3 of the TSIA. | N/A | N/A |
Type of | Notice Required | |||||
Service | Description of Specific Services | Term | to Terminate | |||
All employees and/or other service providers, administrative services, sublicenses of trademarks, trade names and domain names, information and notification required by CBCI in order for CBCI to: (a) provide the CBCI Services, and (b) manage, administer and operate the Liquor Assets (as defined in the Asset Purchase Agreement between CBCI and CDMI dated as of April 25, 2008). | Until services are completed | 30 days |
14
Item 9 is specific to the IT Service Offerings, in support of the general Business to Business Service. |
a) | Access to Cadbury hosted applications |
Type of | Notice Required | |||||
Service | Description of Specific Services | Term | to Terminate | |||
System Access | DPS will provide access to the Internet via DPS Internet breakout points. Internet access is the only requirement for Cadbury to gain access to Cadbury hosted applications | 5 months | 30 days | |||
Cadbury colleagues requiring printing services from Cadbury-hosted applications will print to Cadbury-provided local printers while connected to Cadburys VPN | ||||||
Access to local shared resources (file/print servers, Multi-Function Printers, DPS-hosted applications) while Cadburys colleagues are connected to Cadburys VPN is not supported | ||||||
Printing from DPS-hosted or local applications will continue to go through DPS print servers to shared printer resources | ||||||
IP Team (Dan Chung 13 colleagues) Application Requirements | ||||||
Dennemeyer IAM | ||||||
NAC SAP | ||||||
Tax Team (Lisa Longo 6 colleagues) Application Requirements | ||||||
Hyperion HFM | ||||||
SAP NAC SP5 | ||||||
SAP CTAI 3.0f |
15
b) | Access to DPS-hosted applications |
Type of | Notice Required | |||||
Service | Description of Specific Services | Term | to Terminate | |||
System Access | DPS will continue to provide access through DPS network and access control systems to DPS-hosted applications. SAP MSSI MPD SAP Probe SP2 Applications installed on Rye Brook-based file servers | 8 months | 30 days |
c) | Shared File and Print Server/MFP access |
Type of | Notice Required | |||||
Service | Description of Specific Services | Term | to Terminate | |||
System Access | DPS will provide access through DPS network and access control systems to DPS shared file and print servers. Access control will be via DPS Active Directory account | 8 months | 30 days | |||
Access to Cadbury data will be restricted to Cadbury accounts via Group Membership restrictions in DPS Active Directory system | ||||||
Home directories for Cadbury employees will continue to be located on the local file server | ||||||
Cadbury may periodically request an audit of Group Members of any Cadbury-specific Active Directory Group | ||||||
Cadbury employees will have the ability to scan documents and store the scanned images on the DPS shared file server | ||||||
Upon termination of this Service, Cadbury will provide blank backup tapes and USB drives to which all Cadbury data will be copied | ||||||
Upon termination of this Service, DPS will permanently remove all Cadbury-specific data from local file servers |
d) | Phone/voicemail system |
Type of | Notice Required | |||||
Service | Description of Specific Services | Term | to Terminate | |||
Phone Service | DPS will supply one fixed-line phone per Cadbury employee DPS will supply one standard voice mailbox per Cadbury employee Cadbury employees will be listed in DPS phone directory Not available with this service: o Access to Cadburys phone services directory o Short (7-digit) dial to Cadbury employees in other facilities | 8 months | 30 days |
e) | Personal Computer/Workstation |
Type of | Notice Required | |||||
Service | Description of Specific Services | Term | to Terminate | |||
PC / Workstation | DPS will supply one standard desktop or laptop per Cadbury employee Upon termination of this Service, Cadbury will provide blank backup tapes and USB drives to which all Cadbury data will be copied | 8 months | 30 days |
f) | Break Fix Support (Severity 1 and 2) |
16
Type of | Notice Required | |||||
Service | Description of Specific Services | Term | to Terminate | |||
Break/Fix Support | DPS will respond to and address any Severity 1 or Severity 2 issues, once notified by Cadbury. This service is to include both providing direction to responsible Resolver or when needed serving as the Resolver. Cadbury is expected to utilize existing SLA definitions for categorization of incidents. DPS will attempt to resolve the issue within the existing SLA timeframes. | 8 months | 30 days | |||
It is incumbent upon Cadbury to provide and fund any network / application access required for DPS to deliver this service. |
g) | Preventative Maintenance |
Type of | Notice Required | |||||
Service | Description of Specific Services | Term | to Terminate | |||
Preventative Maintenance | DPS Providing Party will perform monitoring of the infrastructure to ensure adequate connectivity. DPS Providing Party will suggest and when approved by agreed Cadbury Receiving Party representative implement changes to the network connectivity. | 8 months | 30 days | |||
It is incumbent upon the Cadbury Receiving Party to provide and fund any network / application access required for the DPS Providing Party to deliver this service. |
h) | User Administration |
Type of | Notice Required | |||||
Service | Description of Specific Services | Term | to Terminate | |||
User Administration | DPS will add and remove users from the system, upon receipt of formal request from Cadbury. DPS will attempt to action the request within existing SLAs. DPS will add users to appropriate security groups per Cadburys request | 8 months | 30 days |
i) | Knowledge Transfer |
Type of | Notice Required | |||||
Service | Description of Specific Services | Term | to Terminate | |||
Knowledge Transfer | DPS will meet with identified Cadbury resources to share detailed knowledge of the system. DPS will provide information on specific aspects of the system only one time. | 8 months | 30 days | |||
Following that initial knowledge transfer, it is the responsibility of Cadbury to share the knowledge internally |
3) | Out of Scope Services: |
a) | Printing from DPS-hosted or local applications to locally-attached printers | ||
b) | Application break and fix, upgrades and enhancements | ||
c) | Operating System Upgrades | ||
d) | Any break-fix or preventative maintenance support requested following application or operating system upgrades |
17
e) | Break-fix support for Severity 3 or 4 issues | ||
f) | Data replication between DPS and Cadbury resources | ||
g) | Application development and license management |
a) | WAN, LAN and Voice Specialists | ||
b) | Intel and Unix Specialist |
18
a) | Providing a list of Cadbury employees with relevant department, cost center, email, reporting manager and parent cost center information. | ||
b) | Reviewing each contract/service following a data separation to validate the data. |
Notice | ||||||
Required | ||||||
Type of | to | |||||
Service | Description of Specific Services | Term | Terminate | |||
Telephony (T-Mobile) | DPS will maintain and charge Cadbury for services under the T-Mobile Mobility Services [ILLEGIBLE]) contract. The charges will be for the portion of the monthly invoice used by Cadbury businesses and its employees. | 5 months | 30 days | |||
Currently, the agreed split is 50% DPS & 50% CS. DPS will charge Cadbury for 50% of the total monthly amount until a more exact split is determined. | ||||||
Telephony (AT&T Mobile) | DPS will maintain and charge Cadbury for services under the AT&T Mobility (formerly Cingular) Services [ILLEGIBLE] contract. The charges will be for the portion of the monthly invoice used by Cadbury businesses and its employees. | 5 months | 30 days | |||
Currently, the agreed split is 75% DPS & 25% Cadbury. DPS will charge Cadbury for 25% of the total monthly amount until a more exact split is determined. | ||||||
Telephony (Sprint Long Distance) | DPS will maintain and charge Cadbury for services under the Sprint Long Distance and Calling Card Services [ILLEGIBLE] contract. The charges will be for the portion of the monthly invoice used by Cadbury businesses and its employees. Charges presented to Cadbury will include a copy of the original invoice if the agreed split is utilized, otherwise, line item information will be provided detailing each charge. Standard Net 30 Terms apply for invoice processing. | 5 months | 30 days | |||
Currently, the agreed split is 75% DPS & 25% Cadbury, until such time that the DPS and Cadbury accounts and devices are identified and agreed to then the actual charges for those accounts will be invoiced accordingly and the split no longer applies. | ||||||
Telephony (Sprint Nextel Mobile) | Beverages will maintain and charge Cadbury for services under the Sprint/Nextel Mobility Services [ILLEGIBLE] contract. The charges will be for the portion of the monthly invoice used by Cadbury businesses and its employees. Charges presented to Cadbury will include a copy of the original invoice if the agreed split is utilized, otherwise, line item information will be provided detailing each charge. Standard Net 30 Terms apply for invoice processing. | 5 months | 30 days | |||
Currently, the agreed split is 60% DPS & 40% Cadbury, until such time that the DPS and Cadbury accounts and devices are identified and agreed to then the actual charges for those accounts will be invoiced accordingly and the split no longer applies. | ||||||
Telephony | DPS will maintain and charge Cadbury for services under the Symphony Service | 5 months | 30 days |
19
Notice | ||||||
Required | ||||||
Type of | to | |||||
Service | Description of Specific Services | Term | Terminate | |||
(Symphony Ongoing) | Telecommunications Expense Management and Cellular Service Desk Services [ILLEGIBLE] contract. The charges will be for the portion of the monthly invoice used by Cadbury businesses and its employees. Charges presented to Cadbury will include a copy of the original invoice if the agreed split is utilized, otherwise, line item information will be provided detailing each charge. Standard Net 30 Terms apply for invoice processing. | |||||
Currently, the agreed split is 60% DPS & 40% Cadbury, until such time that the DPS and Cadbury accounts and devices are identified and agreed to then the actual charges for those accounts will be invoiced accordingly and the split no longer applies. | ||||||
Telephony (Verizon Long Distance) | DPS will maintain and charge Cadbury for local telephone and DID services under the Verizon [ILLEGIBLE] contract. The charges will be for the portion of the monthly invoice used by Cadbury businesses and its employees. Charges presented to Cadbury will include a copy of the original invoice if the agreed split is utilized, otherwise, line item information will be provided detailing each charge. Standard Net 30 Terms apply for invoice processing. | 5 months | 30 days | |||
Currently, the agreed split is 30% DPS & 70% Cadbury, until such time that the DPS and Cadbury accounts and devices are identified and agreed to then the actual charges for those accounts will be invoiced accordingly and the split no longer applies. | ||||||
Telephony (Post Symphony Service Desk & Billing) | Upon expiration of the Symphony Services Agreement [ILLEGIBLE] DPS and Cadbury will exchange internal services for those previously provided by Symphony to include Telecommunications Invoice Management and Cellular Service Desk Support. Both parties agree to an exchange of services in lieu of monies. Cadbury is to provide monthly invoicing support services to DPS and in exchange DPS will provide Cellular Service Desk support to Cadbury. Any significant change to the services or Service Levels previously provided under the Symphony Agreement will be agreed upon by both parties in writing, and subject to appropriate change management, prior to execution. |
20
11. | IT (Network Services) |
Type of | Notice Required | ||||||
Service | Description of Specific Services | Term | to Terminate | ||||
Network Services | The DMZ provides the ability for key partners (commercial or financial) to exchange data with our systems in a protected environment without requiring our company to provide full access to our environment, which could lead to security issues. | 3 months | 30 days | ||||
As part of separation, Cadbury will be building a new DMZ environment with Hewlett Packard. This new DMZ environment will not be available for use until June 2008. As a result, continued access / support for Cadbury applications in the DPS DMZ are required. | |||||||
In order to facilitate this access, the network tie between Cadbury and DPS must be maintained. These double running network costs are borne by Cadbury and not included in this Service. Additionally, the Hewlett Packard data center environment separation, which is dependent on network separation, will be delayed. |
12. | IT (Advisory Services) |
Type of | Notice Required | ||||||
Service | Description of Specific Services | Term | to Terminate | ||||
Advisory Services | The IT organization of Cadbury will be entitled to request and utilize the knowledge capital / system expertise of support resources of DPS. This request is only to be made in the event of critical Severity 1 or Severity 2 incidents requiring immediate resolution to allow the impacted business to operate. | 8 months | 30 days | ||||
DPS is not obligated to provide any resource assistance. However, if formally requested, the appropriate Function Head may allow their resource to assist in resolving the issue at hand. In such cases, this Service is meant to ensure that proper cost recovery is provided. Should the request be granted, the resources time will be billed at $80/hour. |
13. | IT (Network Ops Support) |
Type of | Notice Required | ||||||
Service | Description of Specific Services | Term | to Terminate | ||||
Support Services | CS IT will be entitled to request and utilize the knowledge capital/system expertise of support resources of DPS IT. This request is only to be made in the event of critical Severity 1 and Severity 2 incidents requiring immediate resolution to allow the impacted business to operate. | 1 month | N/A | ||||
The Service would keep the combined DPS and Cadbury network operations team as it is until May 31st. This will give the Cadbury Operations team time to get its resources trained and on-boarded. | |||||||
DPS and Cadbury will continue the current mode of Network Operations support including 7 X 24 on-call rotations for Data and Voice issues. Once the Ticket queues have been separated, if both teams do not have access to the other queues, the Tickets will updated via email exchange between the groups. |
21
14. IT (Rogers Facility) |
Notice | ||||||
Type of | Required to | |||||
Service | Description of Specific Services | Term | Terminate | |||
Network Services | The current planned date for IT readiness in the new Cadbury office at the Rogers AR sales facility is 15 June. Due to delays in the separation of the DPS / Cadbury network, Rogers Cadbury users will continue to have access to the Cadbury network through at least 30 June. So long as all new network connectivity is complete by 30 June, the following IT services will continue to be provided to Cadbury users at no charge. | 2 months | 30 days | |||
Desk | ||||||
Phone | ||||||
Network connectivity (until network separation) | ||||||
File server / Network Printer access (until network separation) | ||||||
The following services will not be available: | ||||||
DPS-issued PCs. (Users will keep their Cadbury PCs). | ||||||
If funding or project delays push the readiness date past 30 June and network separation occurs, the fallback will be to have the Cadbury users set up in the DPS environment. | ||||||
Users will lose any file server access for their Cadbury accounts, so any saved data would need to be removed prior to the split. | ||||||
Users will have access to the local services (network, printer) via their DPS credentials, but would be required to access the confectionery system via VPN. | ||||||
Further, their Cadbury email will only be accessible via the WebMail functionality while on the DPS network or via VPN to use the Outlook client. | ||||||
While on VPN, they would not have the ability to print locally, though documents could be saved and printed to the network once completed. | ||||||
Incremental costs due to a post 30 June move will be agreed to/funded by the site owner |
22
15. | IT (CCB Governance) |
Notice | ||||||
Type of | Required to | |||||
Service | Description of Specific Services | Term | Terminate | |||
Change Management | As the network will continued to be shared between Cadbury and DPS until at best early July, it is crucial that both organizations communicate, understand, and agree on any changes that will impact the shared network, its connectivity, or performance. | 3 months (Until network separation target July 11, 2008) | N/A | |||
To this end, both parties agree that no network changes shall be implemented without the full approval of from both the DPS and Cadbury Change Control Boards (CCBs). | ||||||
When changes are requested, the requestor is responsible for engaging both their own CCB as well as that of the other party. Only after approval has been given by BOTH CCBs can the change be implemented. | ||||||
In the event of any disagreement between the boards, the issue will be escalated to the appropriate VPs of Infrastructure and if required to the SVPs of IT for both DPS and Cadbury. These parties are accountable for making the final decisions. | ||||||
In the event of an immediate change required to restore service, the support teams will attempt to follow the Fast Track change request process for both organizations. |
16. | IT (Hyperion Access) |
Notice | ||||||
Type of | Required to | |||||
Service | Description of Specific Services | Term | Terminate | |||
System Access | ~ 5 Cadbury Hyperion users will require access to the DPS Hyperion through December 31, 2008. | 8 months | 30 days | |||
Users shall be authorized to: | ||||||
access the system to assist with consolidation activities | ||||||
review DPSG financial data | ||||||
save and print reports | ||||||
DPS IT will ensure all security profiles are generated and implemented. | ||||||
17. | IT (Ongoing Separation Activities) |
Notice | ||||||
Type of | Required to | |||||
Service | Description of Specific Services | Term | Terminate | |||
Technical Services | As of the Distribution Date, there will be a number of activities still under way to fully split the DPS and Cadbury systems. All costs for these activities are borne in the Separation budget and any DPS costs are part of the final settlement of outstanding intercompany balances that will be settled prior to the Distribution Date. Therefore, no costs will be billed to either party for this Service. | 3 months (Or final technical separation) | None | |||
However, there are a number of technical considerations, and this Service is intended to ensure that the following activities are understood by both DPS and CS to be ongoing and to commit that both IT organizations are committed to completion per the planned timeline. |
23
Notice | ||||||
Type of | Required to | |||||
Service | Description of Specific Services | Term | Terminate | |||
Ongoing activities include: | ||||||
Separation of the Spend Management System (SMS) for DPS | ||||||
Completion of implementation of MSSI Copy IXOS functionality | ||||||
Completion of AD Migration activities for Finance Users & Applications | ||||||
Standup of the DMZ, Separation of the Data Center, Breaking of the Network (addressed fully in a separate Service) | ||||||
Deletion of data in separated systems (GDS, Trouble Ticketing Systems) | ||||||
Streamserve Form Testing | ||||||
Lotus Notes DBs SARD, RAM |
24
Type of Service | Full Term Cost | |||
1. Corporate Group Finance | $ | 36,000 | ||
2. Corporate Group HR Benefits | $ | 55,000 | ||
3. Corporate Group Intellectual Property (Americas) | $ | 2,250 | ||
4. Corporate Group Legal Americas | $ | 9,000 | ||
5. Corporate Audit | $ | 0 | ||
6. Tax | $ | 304,000 | ||
7. Treasury | $ | 126,000 | ||
8. North American HR | $ | 0 | ||
9. NoLA Office and Administrative Services | $ | 3,500 | ||
10. Canadian Services | $ | 0 | ||
11. IT Management Advisory Services | $ | 0 | ||
12. IT (Management Advisory Services) | $ | 0 | ||
13. IT (Active Directory Trust) | $ | 14,000 | ||
14. IT (Hyperion Access) | $ | 0 | ||
15. IT (Ongoing Separation Activities) | $ | 0 | ||
16. IT (Network Ops Support) | $ | 0 | ||
Total to be Charged to DPS | $ | 556,150 |
25
Type of Service | Full Term Cost | |||
1. Customer Solutions Facilities Services & Support/Fleet | $ | 138,890 | ||
2. Customer Solutions HR Services | $ | 28,333 | ||
Payroll & Workmans Comp Services | $ | 11,400 | ||
Medical Claim Payments | $ | 0 | ||
3. HR Benefits | $ | 208,928 | ||
4. Compensation CoE | $ | 39,407 | ||
5. Finance | $ | 33,750 | ||
6. Risk Management | $ | 25,200 | ||
7. Tax | $ | 0 | ||
8. Canadian Services | $ | 0 | ||
9. IT | $ | 50,870 | ||
10. IT (Telephony Mobile Services Contracts) | ||||
Telephony (T-Mobile) | $ | 141,250 | ||
Telephony (AT&T Mobile) | $ | 218,750 | ||
Telephony (Sprint Long Distance) | $ | 150,000 | ||
Telephony (Sprint/Nextel Mobile) | $ | 28,000 | ||
Telephony (Symphony Ongoing) | $ | 36,000 | ||
Telelphony (Verizon Long Distance) | $ | 42,000 | ||
Telephony (Post Symphony Service Desk & I Billing) | $ | 0 | ||
11. IT (Network Services) | $ | 99,000 | ||
12. IT (Advisory Services) | $ | 0 | ||
13. IT (Network Ops Support) | $ | 0 | ||
14. IT (Rogers Facility) | $ | 0 | ||
15. IT (CCB Governance) | $ | 0 | ||
16. IT (Hyperion Access) | $ | 0 | ||
17. IT (Ongoing Separation Activities) | $ | 0 | ||
Total to be Charged to Cadbury | $ | 1,251,778 |
26
1. | Legal advisory services | |
2. | Insurance services | |
3. | Execution of treasury services | |
4. | Any services designated as Out-of-Scope Services on Schedule A or B | |
5. | Any other services that the parties reasonably agree is not appropriate for one party or its Affiliates to provide to the other party or its Affiliates because the parties are not Affiliates of one another |
27