Exhibit 10.37

 

LIFE INSURANCE BENEFIT AGREEMENT

 

This LIFE INSURANCE BENEFIT AGREEMENT (the “Agreement”) is made and entered into
as of the 5th day of December, 2003, and shall be effective as of the 28th day
of December, 2003 (the “Effective Date”), by and between COCA-COLA BOTTLING CO.
CONSOLIDATED, a Delaware corporation (the “Corporation”), Jan M. Harrison,
Trustee under the J. Frank Harrison, III 2003 Irrevocable Trust dated December
8, 2003 (the “JFH Trust”), John R. Morgan, Trustee under the Harrison Family
2003 Irrevocable Trust dated December 8, 2003 (the “Family Trust”), and J. Frank
Harrison, III (the “Executive” and together with the JFH Trust, the Family Trust
and the Corporation, the “Parties”).

 

Statement of Purpose

 

Executive is the Chairman and Chief Executive Officer of the Corporation. The
Corporation has previously provided Executive certain life insurance benefits in
accordance with certain split-dollar arrangements. These split-dollar
arrangements have been terminated effective December 27, 2003. As part of
Executive’s continuing compensation and benefit arrangements, the Corporation
wishes to provide replacement life insurance benefits for Executive.

 

NOW, THEREFORE, in consideration of the mutual promises and agreements set forth
herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby expressly acknowledged, the Parties hereto agree
as follows:

 

1. Life Insurance Benefit. As of the Effective Date, the JFH Trust is the owner
of the life insurance policy more particularly described on Exhibit A (the “JFH
Trust Policy”) and the Family Trust is the owner of the life insurance policy
more particularly described on Exhibit B (the “Family Trust Policy”). The
Corporation hereby agrees to pay the annual premiums on the JFH Trust Policy and
the Family Trust Policy, as set forth on Exhibit A and Exhibit B respectively.
The Corporation’s obligation under this Paragraph 1 shall continue until (a) the
premiums and expenses of both the JFH Trust Policy and the Family Trust Policy
have been paid in full or (b) the death of (i) Executive in the case of the JFH
Trust Policy or (ii) both Executive and his spouse in the case of the Family
Trust Policy.

 

2. Taxes. Executive acknowledges that the premium payments made pursuant to
Paragraph 1 will be treated as compensation taxable to him. The Corporation
agrees to make a tax gross-up payment on behalf of Executive, in an amount to be
determined by the Corporation in its sole discretion, for each year in which a
premium payment is made on the Policy by the Corporation.

 

3. Miscellaneous.

 

(a) This Agreement may not be amended, altered or modified except by a written
instrument signed by the Parties or their respective successors or assigns and
may not be otherwise terminated except as provided herein.

 

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(b) This Agreement shall be binding upon the Parties, their heirs, legal
representatives, successors and assigns.

 

(c) This Agreement and the rights of the parties hereunder shall be governed by
and construed in accordance with the laws of the State of North Carolina except
to the extent (if any) superceded by the laws of the United States.

 

(d) Headings in this Agreement are provided for purposes of convenience only and
shall not affect the interpretation of the terms hereof.

 

(e) All notices and other communications hereunder must be in writing and shall
be deemed to have been duly given when either personally delivered or placed in
the United States mails by Certified Mail, return receipt requested, postage
prepaid, addressed to the party to whom such notice is being given as follows:

 

As to the Corporation:   

Coca-Cola Bottling Co. Consolidated

4100 Coca-Cola Plaza

Charlotte, North Carolina 28211

     Attention: Executive Compensation and Benefits Department As to the Trustee
of the JFH Trust:   

Jan M. Harrison

[Intentionally Omitted]

As to the Trustee of the Family Trust:   

John R. Morgan

Poole, Thornbury & Morgan

732 Cherry Street

Chattanooga, Tennessee 37402

As to the Executive:   

J. Frank Harrison, III

[Intentionally Omitted]

 

Any party may change its address (or the name of the person to whose attention
communications hereunder shall be directed) from time to time by serving notice
thereof upon the other party as provided herein.

 

[Signature page follows on next page]

 

2

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IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the 12th
day of December, 2003 to be effective as of the Effective Date.

 

“JFH Trust”

/s/ Jan M. Harrison

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Jan M. Harrison, as Trustee of the J. Frank
Harrison, III 2003 Irrevocable Trust Dated
December 8, 2003

 

“Family Trust”

/s/ John R. Morgan

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John R. Morgan, as Trustee of the Harrison
Family 2003 Irrevocable Trust Dated
December 8, 2003

 

“Corporation”

COCA-COLA BOTTLING CO. CONSOLIDATED

By:

 

/s/ Robert D. Pettas, Jr.

   

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Name:

 

Robert D. Pettas, Jr.

Title:

 

Executive V.P. & Asst. to the Chairman

 

“Executive”

/s/ J. Frank Harrison, III

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J. Frank Harrison, III

 

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Exhibit A

JFH Trust

 

Insurance Policy

 

Insurer

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   Policy Number

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Policy Date

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Travelers Life & Annuity Company

   7421840   

December 19, 2003

 

Schedule of Premium Payments

 

Sixteen (16) annual payments of $145,431.66 commencing in December 2003.

 

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Exhibit B

Family Trust

 

Insurance Policy

 

Insurer

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   Policy Number

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Policy Date

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Travelers Life & Annuity Company

   7421839   

December 19, 2003

 

Schedule of Premium Payments

 

Sixteen (16) annual payments of $77,271.87 commencing in December 2003.