1 Exhibit 10.6 THIS AMENDMENT AGREEMENT dated October 22, 1997 ; AMONG: SPARKLING SPRING WATER LIMITED, ("SSWL") OF THE FIRST PART - and - C.F. CAPITAL CORPORATION, ("C.F.") OF THE SECOND PART - and - G. JOHN KREDIET, ("KREDIET") OF THE THIRD PART - and - STEPHEN L. LARSON, ("LARSON") OF THE FOURTH PART - and - SPARKLING SPRING WATER GROUP LIMITED, ("GROUP") OF THE FIFTH PART WITNESS THAT in consideration of the premises and the mutual agreements and covenants herein contained and the sum of $10 now paid by each of the parties to the other (the receipt and sufficiency whereof as to each of the parties is mutually admitted), the parties covenant and agrees as hereinafter set out. 2 -2- ARTICLE I. INTERPRETATION I.1 In this Agreement, unless the context requires otherwise: (a) "ORIGINAL AGREEMENT" means the Management Agreement dated the 16th day of December. 1993, as amended and restated the 12th day of January, 1996 among SSWL, C.F., Krediet and Larson; (b) "EFFECTIVE DATE" means October 22, 1997; (c) Words and expressions defined in the Original Agreement have the same meaning when used herein as contained therein. I.2 The provisions contained herein shall be deemed to be additions to the provisions contained in the Original Agreement to the extent necessary to give full and complete effect to the provisions contained herein, and this Agreement shall be supplemental to the Original Agreement and shall be read and construed therewith as if the Original Agreement and this Agreement constituted but one document. ARTICLE II. INTENT II.1 C.F. provides management services to SSWL pursuant to the terms and premises of the Original Agreement. II.2 The parties have agreed to amend the Original Agreement with effect on and from the Effective Date in accordance with the provisions set out herein. ARTICLE III. AMENDMENT AGREEMENT III.1 Notwithstanding anything contained in the Original Agreement, the parties hereby agree that on and from the Effective Date the Original Agreement be and is hereby amended by: 3 -3- (i) adding the following immediately following paragraph 2.04(iii) "(iv) C.F. shall be entitled to an additional bonus commencing January 1, 1998 for any year that the base fee is greater than or equal to US$750,000, such additional bonus to be an amount equal to 25% of the base fee paid to C.F. in respect of such fiscal year, provided that SSWL achieves the EBTDAPS target for such year as set out in Schedule "B" attached hereto. For greater certainty, the EBTDAPS target in Schedule "B" is for this additional bonus only and shall not affect any other bonus paid under the Original Agreement;" and (ii) adding the attached schedule as "Schedule "B" to the Original Agreement; ARTICLE IV. GENERAL IV.1 This Agreement shall enure to the benefit of and be binding upon the parties hereto and their respective successors and assigns. IV.2 The parties hereto shall with reasonable diligence do all such things, provide all such reasonable assurances as may be required to consummate the transactions contemplated by this Agreement and carry out its provisions whether in the present or future. IV.3 This Agreement shall be governed by and construed in accordance with the laws of the Province of Nova Scotia. IV.4 This Agreement may be executed in one or more counterparts each of which shall be deemed to be an original and all of which taken together shall constitute one and the same instrument. 4 -4- IN WITNESS WHEREOF the parties hereto have set their hands and affixed their seals on the day and year first above written. SIGNED, SEALED AND DELIVERED in the presence of: SPARKLING SPRING WATER LIMITED Per: /s/Stephen Larson - ---------------------------------- ----------------------------------- SPARKLING SPRING WATER GROUP LIMITED Per: /s/Stephen Larson - ---------------------------------- ----------------------------------- C.F. CAPITAL CORPORATION Per: /s/Stephen Larson - ---------------------------------- ----------------------------------- Per: - ---------------------------------- ----------------------------------- /s/G. John Krediet - ---------------------------------- --------------------------------------- G. JOHN KREDIET /s/Stephen Larson - ---------------------------------- --------------------------------------- STEPHEN L. LARSON 5 SCHEDULE A CONSOLIDATED SPARKLING SPRING WATER INCOME STATEMENT (C$ Thousands) Revenue 1991 1992 1993 1994 1995 1996 1997 ------- ------- ------- ------- ------- ------- ------- Buxton 5,770 7,440 7,876 8,902 11,436 13,151 14,729 Aquaporte 0 1,224 1,592 2,324 2,823 3,244 3,568 SSW 3,813 4,595 4,975 6,109 7,246 8,128 8,776 CS 5,419 6,461 8,079 10,179 12,138 13,331 14,853 ------- ------- ------- ------- ------- ------- ------- 15,002 19,720 22,522 27,515 33,642 37,856 41,926 Growth 31.5% 14.2% 22.2% 22.3% 12.5% 10.8% Cost of Sales and Operating Costs Buxton 6,273 6,682 6,266 6,624 7,724 8,627 9,226 Aquaporte 0 1,146 1,224 1,763 1,874 1,945 2,030 SSW 2,908 3,873 3,925 4,728 5,440 5,938 6,346 CS 3,650 4,491 6,392 7,601 9,205 9,707 9,860 ------- ------- ------- ------- ------- ------- ------- 12,831 16,172 17,808 20,713 24,243 26,217 27,463 Operating Cash Flow Buxton (503) 778 1,609 2,278 3,711 4,524 5,503 Aquaporte 0 78 368 562 949 1,299 1,538 SSW 905 722 1,050 1,384 1,806 2,191 2,439 CS 1,769 1,970 1,687 2,578 2,933 3,624 4,993 ------- ------- ------- ------- ------- ------- ------- 2,171 3,548 4,714 6,801 9,399 11,639 14,463 Margin % 14.5% 18.0% 20.9% 24.7% 27.9% 30.7% 34.5% Growth % 63.4% 32.9% 44.3% 38.2% 23.8% 24.3% Corporate Overhead, which includes Larson & Krediet Compensation & C.F. Capital expenses 1,367 1,469 ------- ------- EBITDA 10,272 12,994 Depreciation and Amort. 4,205 4,289 Interest Expense 3,059 2,852 Other Expense/(Income) 126 126 ------- ------- Pre-Tax Income 2,881 5,727 Income Tax 299 2,205 Dividends 0 0 ------- ------- Net Income Available to Common 2,582 3,522 Revenue 1998 1999 2000 2001 2002 ------- ------- ------- ------- ------- Buxton 16,202 17,822 19,605 21,565 23,721 Aquaporte 3,925 4,318 4,76 0,225 5,747 SSW 9,464 10,208 11,013 11,882 12,823 CS 16,339 17,972 19,419 20,603 21,861 ------- ------- ------- ------- ------- 45,930 50,320 54,785 59,275 64,152 Growth 9.5% 9.6% 8.9% 8.25 8.2% Cost of Sales and Operating Costs Buxton 10,028 10,908 11,874 12,934 14,102 Aquaporte 2,229 2,392 2,588 2,760 2,970 SSW 6,787 7,262 7,775 8,330 8,930 CS 10,817 11,888 12,799 13,560 14,366 ------- ------- ------- ------- ------- 29,862 82,430 35,016 37,585 40,368 Operating Cash Flow Buxton 6,174 6,914 7,731 8,631 9,619 Aquaporte 1,696 1,926 2,181 2,484 2,777 SSW 2,677 2,946 3,237 3,552 3,893 CS 5,521 6,104 6,620 7,043 7,494 ------- ------- ------- ------- ------- 16,068 17,890 19,769 21,690 23,783 Margin % 35.0% 35.6% 36.1% 36.6% 37.1% Growth % 11.1% 11.3% 10.5% 9.7% 9.6% Corporate Overhead, which includes Larson & Krediet Compensation & C.F Capital expenses 1,569 1,679 1,790 1,903 2,024 ------- ------- ------- ------- ------- EBITDA 14,499 16,211 17,979 19,788 21,759 Depreciation and Amort 4,024 4,043 3,882 2,395 2,403 Interest Expense 2,404 1,840 1,153 379 (465) Other Expense/(Income) 126 83 0 0 0 ------- ------- ------- ------- ------- Pre-Tax Income 7,945 10,265 12,945 17,014 19,811 Income Tax 3,059 3,952 4,984 6,550 7,627 Dividends 0 0 0 0 0 ------- ------- ------- ------- ------- Net Income Available to Common 4,886 6,313 7,961 10,463 12,184 Notes (1) Prior to 1996 CS figures represent a March 31 Year-end. (The 3/31/95 year is placed in the 1994 column.) 6 CONSOLIDATED SPARKLING SPRING WATER INCOME STATEMENT ($ Thousands) Revenues 1992 1993 1994 1995 1996 1997 --------- --------- --------- --------- --------- --------- United Kingdom 7,490 8,590 10,607 14,360 16,345 18,968 Maritime Provinces 3,358 3,635 4,519 5,153 5,595 6,284 British Columbia 4,721 5,904 9,326 10,928 12,855 14,980 United States 0 6,066 7,227 8,588 9,463 10,252 --------- --------- --------- --------- --------- --------- $ 15,569 $ 24,195 $ 31,680 $ 39,029 $ 44,257 $ 50,485 Growth 109.9% 55.4% 30.9% 23.2% 13.4% 14.1% Cost of Sales/Operating Costs United Kingdom 6,668 6,720 7,805 10,236 11,224 12,305 Maritime Provinces 2,830 3,006 3,695 4,219 4,485 4,985 British Columbia 3,282 4,671 6,949 8,264 8,770 10,133 United States 0 4,590 5,523 6,540 7,140 7,466 --------- --------- --------- --------- --------- --------- 12,779 18,986 23,971 29,258 31,618 34,889 --------- --------- --------- --------- --------- --------- Operating Cash Flow $ 2,789 $ 5,209 $ 7,708 $ 9,771 $ 12,639 $ 15,596 ========= ========= ========= ========= ========= ========= Margin % 17.9% 21.5% 24.3% 25.0% 28.6% 30.9% Growth % 981.9% 86.7% 48.0% 26.8% 29.4% 23.4% Performance to Forecast 100.0% 100.0% Corporate Overhead $ 764 $ 1,430 Depreciation and Amort 6,354 Interest Expense 2,455 8,805 Other Expense/(Income) 136 --------- --------- Pre-Tax Income ($ 1,130) Income Tax @ 40.0% 0 Dividends 0 ========= Net Income Available to Common ($ 1,130) ========= Fully Diluted Shares Outstanding 1,612 EPS ($ 0.70) Revenues 1998 1999 2000 2001 2002 2003 --------- --------- --------- --------- --------- --------- United Kingdom 21,895 25,106 28,695 32,577 36,992 42,014 Maritime Provinces 6,810 7,380 7,995 8,659 9,378 10,158 British Columbia 16,660 18,395 20,163 21,767 23,501 25,375 United States 11,488 12,765 14,021 15,245 16,488 17,836 --------- --------- --------- --------- --------- --------- $ 56,852 $ 63,646 $ 70,874 $ 78,247 $ 86,359 $ 95,383 Growth 12.6% 12.0% 11.4% 10.4% 10.4% 10.4% Cost of Sales/Operating Costs United Kingdom 13,271 14,507 15,840 17,228 18,760 20,451 Maritime Provinces 5,287 5,611 5,960 6,335 6,741 7,178 British Columbia 11,093 12,129 13,206 14,224 15,327 16,522 United States 7,788 8,491 9,191 9,874 10,522 11,218 --------- --------- --------- --------- --------- --------- 37,438 40,739 44,197 47,663 51,350 55,369 --------- --------- --------- --------- --------- --------- Operating Cash Flow $ 19,414 $ 22,908 $ 26,677 $ 30,585 $ 35,009 $ 40,014 ========= ========= ========= ========= ========= ========= Margin % 34.1% 36.0% 37.6% 39.1% 40.5% 42.0% Growth % 24.5% 18.0% 16.5% 14.7% 14.5% 14.3% Performance to Forecast 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Corporate Overhead $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 Depreciation and Amort 6,302 6,447 6,582 6,504 6,089 6,176 Interest Expense 8,726 8,514 8,195 7,749 7,167 6,462 Other Expense/(Income) 136 136 35 35 35 35 --------- --------- --------- --------- --------- --------- Pre-Tax Income $ 2,750 $ 6,311 $ 10,365 $ 14,797 $ 20,218 $ 25,841 Income Tax @ 40.0% 648 2,524 4,146 5,919 8,087 10,336 Dividends 0 0 0 0 0 0 ========= ========= ========= ========= ========= ========= Net Income Available to Common $ 2,102 $ 3,787 $ 6,219 $ 8,878 $ 12,131 $ 15,505 ========= ========= ========= ========= ========= ========= Fully Diluted Shares Outstanding 1,612 1,612 1,612 1,612 1,612 1,612 EPS $ 1.30 $ 2.35 $ 3.86 $ 5.51 $ 7.53 $ 9.62 Revenues 2004 2005 2006 2007 --------- --------- --------- --------- United Kingdom 45,795 49,917 54,409 59,306 Maritime Provinces 11,072 12,069 13,155 14,339 British Columbia 27,658 30,148 32,861 35,818 United States 19,441 21,191 23,098 25,177 --------- --------- --------- --------- $ 103,967 $ 113,324 $ 123,523 $ 134,640 Growth 9.0% 9.0% 9.0% 9.0% Cost of Sales/Operating Costs United Kingdom 22,291 24,298 26,484 28,868 Maritime Provinces 7,824 8,528 9,296 10,133 British Columbia 18,009 19,630 21,397 23,323 United States 12,227 13,328 14,527 15,835 --------- --------- --------- --------- 60,352 65,784 71,705 78,158 --------- --------- --------- --------- Operating Cash Flow $ 43,615 $ 47,540 $ 51,819 $ 56,482 ========= ========= ========= ========= Margin % 42.0% 42.0% 42.0% 42.0% Growth % 9.0% 9.0% 9.0% 9.0% Performance to Forecast 100.0% 100.0% 100.0% 100.0% Corporate Overhead $ 1,500 $ 1,500 $ 1,500 $ 1,500 Depreciation and Amort 6,732 7,338 7,998 8,718 Interest Expense 5,627 4,654 3,545 (127) Other Expense/(Income) 0 0 0 0 --------- --------- --------- --------- Pre-Tax Income $ 29,755 $ 34,048 $ 38,776 $ 46,391 Income Tax @ 40.0% 11,902 13,619 15,510 18,556 Dividends 0 0 0 0 ========= ========= ========= ========= Net Income Available to Common $ 17,853 $ 20,429 $ 23,265 $ 27,835 ========= ========= ========= ========= Fully Diluted Shares Outstanding 1,612 1,612 1,612 1,612 EPS $ 11.08 $ 12.67 $ 14.43 $ 17.27 Notes - ------------- 1) All acquisitions are included from 1991. 2) No new acquisitions are assumed. Pre-Senior Mgmt EBTDA 6,421 10,318 14,024 18,112 22,466 Pre-Senior Mgmt EBTDA per share US$ $ 3.98 $ 6.40 $ 8.70 $ 11.24 $ 13.94 Pre-Senior Mgmt EBTDA per share C$ C$5.49 C$8.83 C$12.00 C$15.50 C$19.22 Pre-Senior Mgmt EBTDA 27,472 33,182 37,617 42,516 47,904 56,239 Pre-Senior Mgmt EBTDA per share US$ $ 17.04 $ 20.58 $ 23.34 $ 26.37 $ 29.72 $ 34.89 Pre-Senior Mgmt EBTDA per share C$ C$23.51 C$28.39 C$32.19 C$36.38 C$40.99 C$48.12 Page 1 7 CONSOLIDATED SPARKLING SPRING WATER POST REORGANIZATION SHARE OWNERSHIP ($ Thousands) OPTIONS -------------------------------------------- Total Warrants Mgmt Mgmt Mgmt Description Voting % @$1 @ C$1.82 @ C$5.5 @ $4.326 ------------ ------- ----- -------- -------- ------- -------- Gaspar/Krediet Management 705,050 50.6% 0 Mark and Lucy Stitzer Cargill Family 94,010 6.8% Stephen Larson Management 119,209 8.6% 41,787 Stewart Allen Management 5,672 0.4% 55,111 39,595 Kevin Newman Financial Advisor 28,203 2.0% Art Goodick Management 180 0.0% 5,000 5,000 Peter Kooman Cargill Family 0 0.0% 9,354 John Stiles Management 3,500 0.3% Robert Sedgeman Management 0 0.0% Clairvest Merchant Banker 423,190 30.4% 0 Sean Day Investor 8,994 0.6% Tom Ferries Management 1,800 0.1% Helen Martin Management 1,700 0.1% Tim Daugherty Management 1,000 0.1% Larry Brookes Management 180 0.0% Natwest Markets Senior Lender 0 0.0% 51,100 ------- ----- ------ ------ ----- ------ 1392688 100.0% 51,100 55,111 5,000 95,736 ======= ===== ====== ====== ===== ====== Proceeds from Issuance 1 100 28 567 Exchange 0.73 OPTIONS Fully --------------------------------- Mgmt Mgmt Mgmt Diluted @ $10.27 @ $14 @ $20 Shares % -------- ------ ------ ------- ----- Gaspar/Krediet 8,250 713,300 43.4% Mark and Lucy Stitzer 94,010 5.7% Stephen Larson 12,000 172,996 10.5% Stewart Allen 10,000 110,378 6.7% Kevin Newman 28,203 1.7% Art Goodick 5,000 15,180 0.9% Peter Kooman 9,354 0.6% John Stiles 5,000 8,500 0.5% Robert Sedgeman 5,000 5,000 0.3% Clairvest 423,190 25.7% Sean Day 8,994 0.5% Tom Ferries 1,800 0.1% Helen Martin 1,700 0.1% Tim Daugherty 1,000 0.1% Larry Brookes 180 0.0% Natwest Markets 51,100 3.1% ----- ----- ------ ------- ----- 5,000 5,000 35,250 1644885 100.0% ===== ===== ====== ======= ===== Proceeds from Issuance 70 96 966 1,732 Exchange 0.73 Page 1