Pan American Foods, Inc. - Page 7

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          Hoyos.  Gamesa apparently never received any of the funds that              
          were transferred by petitioner to Rubbik under the above                    
          consulting agreements.                                                      
               During the years in issue, Gamesa did not charge                       
          distributors who distributed Gamesa’s products in Mexico for                
          services relating to product development, design, packaging, or             
          marketing of the products.  Further, Mexican distributors of                
          Gamesa’s products apparently did not make payments to Gamesa                
          relating to the “Gamesa” or “g” trademarks.                                 
               Effective October 1, 1990, PepsiCo, Inc. (PepsiCo) acquired            
          a controlling interest in Gamesa, but petitioner continued as the           
          sole authorized distributor of Gamesa’s products in the United              
          States.  Until August of 1991, petitioner continued to distribute           
          Gamesa’s products in the United States bearing the “g” trademark,           
          and petitioner continued to use the “g” trademark in the United             
          States to advertise Gamesa's products.                                      
               After PepsiCo acquired Gamesa, petitioner no longer                    
          transferred funds to Cremin and Rubbik.                                     
               On August 6, 1991, at PepsiCo’s insistence, Gamesa                     
          terminated its distribution agreement with petitioner.  At the              
          same time, petitioner, Cremin, and Rubbik agreed to transfer back           
          to Gamesa or otherwise cancel any and all rights they possessed             
          to the “g” trademark.  PepsiCo required this cancellation of                
          rights to the “g” trademark because PepsiCo could not determine             






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