Document:

exv10w35

Exhibit 10.35

EXECUTION
COPY

LOCK-UP AGREEMENT

May 12, 2011

Stifel, Nicolaus & Company, Incorporated

     As Representative of the several

     Underwriters referred to below

One Montgomery Street, Suite 3700

San Francisco, CA 94104

     Re:     Public Offering of Common Stock of Primo Water Corporation

Ladies and Gentlemen:

The undersigned understands that Stifel, Nicolaus & Company, Incorporated, as representative,
proposes to enter into an Underwriting Agreement (the “Underwriting Agreement”) on behalf of the
several Underwriters named in Schedule I to such agreement (collectively, the “Underwriters”), with
Primo Water Corporation, a Delaware corporation (the “Company”), providing for a public offering of
the common stock, par value $0.001 per share of the Company (the “Shares”) pursuant to a
Registration Statement on Form S-1 filed with the Securities and Exchange Commission (the “SEC”).

In consideration of the agreement by the Underwriters to offer and sell the Shares, and of other
good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the
undersigned agrees that, during the period specified in the following paragraph (the “Lock-Up
Period”), the undersigned will not offer, sell, contract to sell, pledge, grant any option to
purchase, make any short sale or otherwise dispose of any shares of Common Stock of the Company, or
any options or warrants to purchase any shares of Common Stock of the Company, or any securities
convertible into, exchangeable for or that represent the right to receive shares of Common Stock of
the Company, whether now owned or hereafter acquired, owned directly by the undersigned (including
holding as a custodian) or with respect to which the undersigned has beneficial ownership within
the rules and regulations of the SEC (collectively the “Undersigned’s Shares”). The foregoing
restriction is expressly agreed to preclude the undersigned from engaging in any hedging or other
transaction which is designed to or which reasonably could be expected to lead to or result in a
sale or disposition of the Undersigned’s Shares even if such Shares would be disposed of by someone
other than the undersigned. Such prohibited hedging or other transactions would include without
limitation any short sale or any purchase, sale or grant of any right (including without limitation
any put or call option) with respect to any of the Undersigned’s Shares or with respect to any
security that includes, relates to, or derives any significant part of its value from such Shares.

The initial Lock-Up Period will commence on the date of this Lock-Up Agreement and continue for 90
days after the public offering date set forth on the final prospectus used to sell the Shares (the
“Public Offering Date”) pursuant to the Underwriting Agreement; provided, however, that if (1)
during the last 17 days of the initial Lock-Up Period, the Company releases earnings results or
announces material news or a material event or (2) prior to the expiration of the initial Lock-Up
Period, the Company announces that it will release earnings results during the 15-day period
following the last day of the initial Lock-Up Period, then in each case the Lock-Up Period will be
automatically extended until the expiration of the 18-day period beginning on the date of release
of the earnings results or the announcement of the material news or material event, as applicable,
unless Stifel, Nicolaus & Company, Incorporated waives, in writing, such extension.

The undersigned hereby acknowledges that the Company shall agree in the Underwriting Agreement to
provide written notice of any event that would result in an extension of the Lock-Up Period
pursuant to the previous paragraph to the undersigned and agrees that any such notice properly
delivered will be

 

 

deemed to have been given to, and received by, the undersigned. The undersigned hereby further
agrees that, prior to engaging in any transaction or taking any other action that is subject to the
terms of this Lock-Up Agreement during the period from the date of this Lock-Up Agreement to and
including the expiration of the Lock-Up Period, it will give notice thereof to the Company and will
not consummate such transaction or take any such action unless it has received written confirmation
from the Company that the Lock-Up Period (as such may have been extended pursuant to the previous
paragraph) has expired.

Notwithstanding the foregoing, the undersigned may transfer the Undersigned’s Shares (i) as a bona
fide gift or gifts, provided that the donee or donees thereof agree to be bound in writing by the
restrictions set forth herein, (ii) to any trust, partnership or limited liability company for the
direct or indirect benefit of the undersigned or the immediate family of the undersigned, provided
that the trustee of the trust or the partnership or the limited liability company agrees to be
bound in writing by the restrictions set forth herein, and provided further that any such transfer
shall not involve a disposition for value, (iii) if the undersigned is a limited partnership or
limited liability company, to the partners or members of such partnership or limited liability
company as part of a pro rata distribution, provided that such partners or members agree to be
bound in writing by the restrictions set forth herein and provided further, that no filing by any
party (donor, donee, transferor or transferee) under the Securities Exchange Act of 1934, as
amended, or other public announcement shall be required or shall be made voluntarily in connection
with such transfer or distribution (other than a filing on a Form 5 made after the expiration of
the Lock-Up Period) or (iv) with the prior written consent of Stifel, Nicolaus & Company,
Incorporated on behalf of the Underwriters. For purposes of this Lock-Up Agreement, “immediate
family” shall mean any relationship by blood, marriage or adoption, not more remote than first
cousin. In addition, notwithstanding the foregoing, if the undersigned is an entity, the entity
may transfer the capital stock of the Company to any direct or indirect wholly-owned subsidiary of
such entity; provided, however, that in any such case, it shall be a condition to
the transfer that the transferee execute an agreement stating that the transferee is receiving and
holding such capital stock subject to the provisions of this Agreement and there shall be no
further transfer of such capital stock except in accordance with this Agreement, and provided
further that any such transfer shall not involve a disposition for value. The undersigned now has,
and, except as contemplated by clause (i), (ii), (iii) or (iv) above, for the duration of this
Lock-Up Agreement will have, good and marketable title to the Undersigned’s Shares, free and clear
of all liens, encumbrances, and claims whatsoever. The undersigned agrees and consents to the
entry of stop transfer instructions with the Company’s transfer agent and registrar against the
transfer of the Undersigned’s Shares except in compliance with the foregoing restrictions.

Notwithstanding anything herein to the contrary, the foregoing shall not be deemed to restrict the
undersigned from (1) exercising options or warrants to purchase Shares during the Lock-Up Period,
provided in all such cases that no sale, disposition or other transfer of the underlying Shares
occurs during the Lock-Up Period (other than through any cashless or net exercises) or (2) selling
shares to the Underwriters pursuant to the Underwriting Agreement.

The undersigned understands that the Company and the Underwriters are relying upon this Lock-Up
Agreement in proceeding toward consummation of the offering. The undersigned further understands
that this Lock-Up Agreement is irrevocable and shall be binding upon the undersigned’s heirs, legal
representatives, successors, and assigns. This Lock-Up Agreement shall lapse and become null and
void (i) upon written notice from the Company to Stifel, Nicolaus & Company, Incorporated that the
Company does not intend to proceed with the public offering or wishes to terminate the engagement
of Stifel, Nicolaus & Company, Incorporated as an Underwriter of the public offering (notice of
which promptly shall be provided to the undersigned) or (ii) on July 15, 2011, if a registration
statement for a Qualifying Combined Offering (as such term is defined in the Second Amendment to
the Registration Rights Agreement, dated as of May 12, 2011, between the undersigned and the
Company) is not declared effective by the Securities and Exchange Commission prior to July 15,
2011. This Lock-Up Agreement shall be governed by, and construed in accordance with, the laws of
the State of New York, without regard to the conflict of laws principles thereof.

2

 

	 	 	 
	 

	 	Very truly yours,
	 
	 	 
	 

	 	 
	 

	 	Culligan International Company
	 
	 	 
	 
	 	/s/ Susan E. Bennett
	 

	 	 
	 

	 	Authorized Signature
	 
	 	 
	 
	 	Senior Vice President, General Counsel & Secretary
	 

	 	 
	 

	 	Title

[Lock-Up Agreement]exv10w36

Exhibit 10.36

EXECUTION
COPY

DISGORGEMENT AGREEMENT

     This DISGORGEMENT AGREEMENT (this “Agreement”) is made as of May
12, 2011, by and
between Primo Water Corporation, a Delaware corporation (the “Company”), and Culligan
International Company, a Delaware corporation (“Culligan”).

R E C I T A L S:

     WHEREAS, the Company’s $0.001 par value common stock (the “Common Stock”) is
registered under Section 12(b) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”);

     WHEREAS, the Company, Primo Refill Canada Corporation, a subsidiary of the Company (“Primo
Canada”), Culligan and Culligan of Canada, Ltd., a subsidiary of Culligan (“Culligan
Canada”), entered into that certain Asset Purchase Agreement, dated March 8, 2011 (the
“Asset Purchase Agreement”), pursuant to which Culligan Canada sold certain assets to Primo
Canada in exchange for USD$1,577,041 in cash (the “Cash Consideration”), the assumption by
Primo Canada of certain liabilities of Culligan Canada (the “Assumed Liabilities”) and the
issuance of 307,217 shares of Common Stock to Culligan on behalf and upon the direction of Culligan
Canada (collectively, the “Purchase Transaction”);

     WHEREAS, prior to the Purchase Transaction, Culligan was a stockholder of the Company and
subject to the reporting and transactional requirements of Section 16 of the Exchange Act;

     WHEREAS, the Company intends to conduct an underwritten public offering of shares of Common
Stock (the “Offering”);

     WHEREAS, Culligan desires to sell more than 307,217 shares of Common Stock in the Offering
(the “Sale Transaction”);

     WHEREAS, the Purchase Transaction was the result of an arms-length negotiation and resulted in
a purchase price, as set forth in the Asset Purchase Agreement, of CDN$5,300,000 (subject to
adjustment) plus the assumption of the Assumed Liabilities;

     WHEREAS, the net fair market value of the assets and liabilities transferred to Primo Canada
in the Purchase Transaction less the Cash Consideration and the Assumed Liabilities was equal to
USD$3,819,079 (the “Share Purchase Price”);

     WHEREAS, Culligan’s sale of 307,217 shares of Common Stock in the Sale Transaction prior to
September 7, 2011 for proceeds (less direct transaction expenses) in excess of the Share Purchase
Price would result in a matchable transaction under Section 16(b) of the Exchange Act (“Section
16(b)”); and

     WHEREAS, Culligan wishes to discharge its obligations under Section 16(b) as a result of the
Sale Transaction by entering into this Agreement;

     NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and
intending to be legally bound, the parties hereby agree as follows:

     1. The Company and Culligan both acknowledge and agree with the recitals set forth above.

     2. Culligan agrees that it shall pay the Company the full amount of any profits realized from
the sale in the Offering of up to 307,217 shares of Common Stock in any transaction occurring prior
to September 7, 2011, less direct transaction expenses, all in
accordance with
Section 16(b).

 

 

     3. In furtherance of Section 2 above, Culligan shall pay, or cause the underwriters of the
Offering to pay, to the Company at the closing of the Offering, if the same occurs prior to
September 7, 2011, an amount equal to (i) the proceeds payable to Culligan from the sale of 307,217
shares of Common Stock in the Sale Transaction (less direct transaction expenses) minus (ii) the
Share Purchase Price (but only to the extent such calculation results in a positive number).
Insofar as this Agreement is not intended to and does not limit Culligan’s obligations or
liabilities under Section 16(b), Culligan agrees that, if and to the extent it sells additional
shares of Common Stock after the closing of the Offering and prior to September 7, 2011 and
realizes additional profits within the meaning Section 16(b), it will disgorge any such additional
profits to the Company as and in the manner required by Section 16(b).

     4. Culligan agrees to provide the Company upon request with documentation and information
regarding any amounts being claimed as a deduction from the profits realized or any direct
transaction expenses incurred by Culligan in connection with (a) the Sale Transaction or (b) any
other transaction in which it sells shares of Common Stock prior to September 7, 2011 and is
required to disgorge additional profits in the manner contemplated by the second sentence of
Section 3 above.

     5. While this Agreement is intended to provide an accounting and satisfaction of Culligan’s
Section 16(b) obligations and liabilities in connection with the Sale Transaction, the parties
acknowledge that this Agreement does not limit Culligan’s obligations or liabilities under Section
16(b) with respect to the Sale Transaction or any other transaction by it involving Common Stock.

     6. This Agreement contains the entire agreement between the parties relating to the subject
matter hereof, and no amendments will be effective unless in writing and signed by the parties.
This Agreement may be executed in multiple counterparts, including by means of facsimile or e-mail
transmission, all of which taken together shall constitute one and the same instrument.

     7. This Agreement shall be governed by the laws of the state of Delaware without giving effect
to any choice or conflict of law principles of any jurisdiction.

[signature page(s) follow on next page]

 

 

     IN WITNESS WHEREOF, this Agreement has been duly executed and delivered to be effective as of
the date first above written.

	 	 	 	 	 
	 

	 	PRIMO WATER CORPORATION
	 
	 	 	 	 
	 

	 	By	 	/s/ Mark Castaneda
	 

	 	 	 	 
	 

	 	Name:

Title:	 	Mark Castaneda

Chief Financial Officer
	 
	 	 	 	 
	 

	 	CULLIGAN INTERNATIONAL COMPANY
	 
	 	 	 	 
	 

	 	By	 	/s/ Susan E. Bennett
	 

	 	 	 	 
	 

	 	Name:

Title:	 	Susan E. Bennett

Senior Vice President, General Counsel and Secretary

[Disgorgement
Agreement]

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