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                                                                   EXHIBIT 10.14

                                SUPPLY AGREEMENT

This Supply Agreement (hereinafter "Agreement") is effective as of the 1st day
of January, 2002, by and between CROWN CORK & SEAL COMPANY, INC., a Pennsylvania
corporation, with a place of business at One Crown Way, Philadelphia, PA 19154
(hereinafter the "Supplier") and COTT CORPORATION, a Canada corporation, with a
place of business at 333 Avro Avenue, Pointe-Claire, Quebec H9R 5W3 (hereinafter
"Buyer").

IN CONSIDERATION OF the sum of one dollar ($1.00) now paid by each of the
parties hereto to the other (the receipt and sufficiency of which are hereby
acknowledged by each of the parties hereto), the mutual covenants contained
herein and other good and valuable consideration, the parties hereto agree as
follows:

1.   SCOPE; PRODUCTS; SPECIFICATIONS

     (a)  Supplier hereby agrees to supply to Buyer and its current and future
          affiliates world-wide (and Buyer collectively with such affiliates, or
          any such entity individually, will hereinafter sometimes be referred
          to as the "Buyer Group"), and Buyer agrees to purchase from Supplier,
          except as otherwise provided in this Agreement, 100% of Buyer Group's
          requirements (as soon as practicable following the expiration of any
          pre-existing contractual commitments, and with the exception of:
          CONFIDENTIAL TREATMENT REQUESTED for the following products (the
          "Products"), in accordance with and pursuant to the terms of this
          Agreement:

               Aluminum beverage cans, in sizes of 355ml, 330ml, 250ml, 200ml
               and 150ml, and ends, in sizes of 202 (and 206 where required by
               Buyer) and any other sizes required by Buyer Group, based on
               Buyer Group's current portfolio of beverage products
               (collectively, the "Agreed Can/End Sizes"). It is understood and
               agreed that, subject to the balance of this Section 1 and to
               Section 3(h), for North America the can size will be 355ml and
               the end size will be 202.

          At Buyer's option where Supplier has the available equipment
          capability, Supplier will supply cans in any other sizes that are less
          than 355ml and ends in any other sizes in addition to the Agreed
          Can/End Sizes. If Supplier is unable or unwilling to supply any such
          other can and/or end sizes in addition to the Agreed Can/End Sizes
          where Supplier has the equipment capability, Supplier shall be deemed
          to have failed to supply Products in accordance with its obligations
          under this Agreement. For purposes of this Agreement, the term
          "equipment capability" shall mean the Supplier having the installed
          equipment available to produce such Products in a plant already
          supplying such Products or substantially equivalent products to
          Supplier's other customers' filling locations located in the same
          country (and for such purposes Canada and the United States shall be
          deemed to be a single country) as the Buyer Group facility that Buyer
          proposes to be supplied by Supplier, whether or not Supplier has any
          available capacity to run Products on such equipment and whether or
          not Supplier's plant is actually located in such country. If in the
          future Buyer Group requires an end or can size for which Supplier does

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          not have equipment capability, Buyer shall first give Supplier notice
          of its desire to source such cans and ends and a period of thirty (30)
          days within which to reach agreement with Buyer, both parties acting
          reasonably and in good faith, pursuant to which Supplier may supply
          such cans and ends to Buyer Group. If no agreement is reached within
          such thirty (30) day period, Buyer Group shall be free to purchase
          such ends or cans from another supplier, without being considered to
          be in default of its obligations under this Agreement. If Supplier has
          the equipment capability to produce any such other cans and ends but
          not the capacity to do so, Supplier will take whatever steps are
          necessary to add the capacity such that it shall be able to begin
          production for Buyer Group within ninety (90) days of being requested
          to do so by Buyer, failing which Supplier shall be deemed to be in
          default of its obligations to supply Products under this Agreement and
          in addition to all of Buyer's other rights and remedies, Buyer shall
          be entitled to source such cans and ends from other suppliers without
          being considered to be in default of its obligations under this
          Agreement.

          Upon mutual agreement of Supplier and Buyer, both acting reasonably
          and in good faith, and where Supplier has the equipment capability,
          Supplier will also supply steel cans and ends in the above sizes in
          accordance with this Agreement and such cans and ends shall also be
          considered to be "Products". If Supplier has the equipment capability
          and does not commence supplying steel cans and ends, as aforesaid,
          within ninety (90) days of Buyer's request, Buyer shall be entitled to
          source such cans and ends from other suppliers without either party
          being considered to be in default of its obligations under this
          Agreement. If in the future Buyer Group requires a steel can and/or
          end for which Supplier does not have equipment capability, Buyer shall
          first give Supplier notice of its desire to source such cans and ends
          and a period of thirty (30) days within which to reach agreement with
          Buyer, both parties acting reasonably and in good faith, pursuant to
          which Supplier may supply such cans and ends to Buyer Group. If no
          agreement is reached within such thirty (30) day period, Buyer Group
          shall be free to purchase such cans or ends from another supplier,
          without either party being considered to be in default of its
          obligations under this Agreement. For greater clarity, it is
          understood and agreed that in no event can Buyer Group be required to
          convert to steel cans and ends from aluminum cans and ends.
          Notwithstanding the above or anything else in this Agreement to the
          contrary, the parties acknowledge that Supplier Group shall have no
          obligation to supply Buyer Group with aluminum cans and/or ends in a
          country where Supplier Group is already supplying the market with only
          steel cans and/or ends and, in particular, the parties acknowledge
          that the Products currently being supplied and that shall be supplied
          by Supplier Group to Buyer Group in Spain shall be steel cans and
          ends. CONFIDENTIAL TREATMENT REQUESTED

    (b.1) CONFIDENTIAL TREATMENT REQUESTED

    (b.2) Any Buyer Group manufacturing facilities that are currently under a
          supply agreement with another vendor will be supplied by Supplier as
          soon as practicable following the termination date of the contract(s).
          CONFIDENTIAL TREATMENT REQUESTED

     (c)  Supplier and all of Supplier's current and future affiliated companies
          world-wide (collectively the "Supplier Group") will be bound by this
          Agreement. With respect only

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          to Buyer Group's requirements for Products for any present or future
          Buyer Group manufacturing facilities CONFIDENTIAL TREATMENT REQUESTED
          located outside of North America, the United Kingdom, Mexico and Spain
          (it being understood and agreed, for greater clarity, that Supplier
          has an absolute obligation pursuant to the terms of this Agreement to
          supply Products to Buyer Group CONFIDENTIAL TREATMENT REQUESTED
          filling locations within North America, the United Kingdom, Mexico and
          Spain), in the event that Supplier Group (including for such purposes,
          controlled joint venture entities in which any member of Supplier
          Group is a member) has the equipment capability but does not have the
          available capacity in an existing facility to support Buyer Group's
          acquisitions or expansion, Supplier shall add capacity within a time
          period not to exceed twelve (12) months in order to so supply, failing
          which Supplier shall be deemed to have failed to supply Products in
          accordance with its obligations under this Agreement.

     (d)  For purposes of this Agreement, "affiliate" of any party means any
          entity that, directly or indirectly, controls, is under common control
          with or is controlled by that party and "affiliated" has a
          corresponding meaning. For purposes of this definition and this
          agreement, "control" (including, with correlative meaning, the terms
          "controlled by" and "under common control with"), as used with respect
          to any entity, shall mean the possession, directly or indirectly, of
          more than 50% of the voting securities of such entity.

     (e)  Notwithstanding anything in this Agreement to the contrary, Supplier
          shall have no obligation to supply Products to filling locations
          located in any countries outside North America, the United Kingdom,
          Spain CONFIDENTIAL TREATMENT REQUESTED and Mexico if Supplier Group or
          controlled joint venture entities in which any member of Supplier
          Group is a member does not already have the equipment capability
          within, or serving customers in, any such country, and Buyer Group
          shall be free to purchase cans and ends in respect of filling
          locations in such countries from other suppliers without being
          considered to be in default under this Agreement.

     (f)  The specifications for the Products (including palletizing, on a plant
          by plant basis) CONFIDENTIAL TREATMENT REQUESTED consist of the
          specifications for those Products currently being produced by Supplier
          for Buyer Group (the "Specifications"). Supplier will provide Buyer
          notice of any proposed future changes to the current Specifications at
          any Designated Location(s) and will obtain Buyer's written approval
          thereto prior to implementation. CONFIDENTIAL TREATMENT REQUESTED
          Supplier will provide Buyer with all necessary information and product
          samples required by Buyer in order for Buyer to make an informed
          determination on the proposed changes. CONFIDENTIAL TREATMENT
          REQUESTED Buyer will notify Supplier of its acceptance or rejection of
          the proposed changes within ninety (90) days of its receipt of all of
          the above.

     (g)  If Supplier is required under this Agreement to make a new investment
          to add capacity in order to supply Buyer Group in a country where
          Supplier is not supplying Buyer Group at the time the request to
          supply is made by Buyer, Supplier has the option to require Buyer to
          enter into a purchase commitment for that country ("Additional
          Commitment")

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          for a term of up to five years (the exact term being at Supplier's
          sole discretion) with all of the terms and conditions of this
          Agreement to apply thereto except that pricing shall be CONFIDENTIAL
          TREATMENT REQUESTED.

          CONFIDENTIAL TREATMENT REQUESTED

     (h)  Notwithstanding anything in this Agreement to the contrary Supplier
          will not be obliged to supply Products to Buyer Group pursuant to the
          terms of this Agreement in any countries other than Canada, United
          States, Mexico, United Kingdom and Spain until such time as the annual
          volume of purchases by Buyer Group, CONFIDENTIAL TREATMENT REQUESTED
          in the aggregate, reaches 4 billion cans, excluding any future volume
          that is acquired by Buyer Group and thereafter supplied by Supplier
          pursuant to this Agreement where any such incremental volume was
          already being supplied by Supplier immediately before it becomes part
          of the requirements of the Buyer Group, CONFIDENTIAL TREATMENT
          REQUESTED.

2.   TERM

This Agreement shall, subject to any early termination in accordance with the
terms hereof, be in effect for a period of five (5) years commencing on January
1, 2002 and expiring on December 31, 2006 (the "Term").

3.   PRICING AND PAYMENT

     (a)  The prices (the "Prices") charged to Buyer for the Products are
          CONFIDENTIAL TREATMENT REQUESTED, and are subject to adjustment
          CONFIDENTIAL TREATMENT REQUESTED. Other than CONFIDENTIAL TREATMENT
          REQUESTED, the Prices shall not be increased during the Term. Buyer
          shall have the right, upon written request from time to time, to
          request an audit by Supplier's CPA (currently PricewaterhouseCoopers)
          of the books and records of Supplier relating to the Price changes in
          order to obtain a certification by PricewaterhouseCoopers of
          compliance with this Section 3(a). The cost of the audit shall be paid
          by Buyer, unless the audit discloses that Supplier has not been in
          compliance with this Section 3(a), in which case it shall be paid for
          by Supplier.

     (b)  The Prices include CONFIDENTIAL TREATMENT REQUESTED with title to and
          risk of loss in the Products passing to Buyer CONFIDENTIAL TREATMENT
          REQUESTED, at such time as the Products are received at the Designated
          Location.

     (c)  Pallets, tier sheets and top frames (collectively "dunnage") are the
          property of Supplier. Dunnage will not be charged to Buyer and
          Supplier will arrange pick up and loading of all dunnage at Supplier's
          own cost.

     (d)  Supplier shall produce and deliver the Products as and when required
          by Buyer Group and in accordance with the terms of this Agreement,
          CONFIDENTIAL TREATMENT REQUESTED.

     (e)  CONFIDENTIAL TREATMENT REQUESTED

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     (f)  CONFIDENTIAL TREATMENT REQUESTED

     (g)  CONFIDENTIAL TREATMENT REQUESTED

     (h)  CONFIDENTIAL TREATMENT REQUESTED

4.   FREIGHT; FAILURE TO SUPPLY; CUSTOMER REFUSAL

     (a)  Set out CONFIDENTIAL TREATMENT REQUESTED is a list of the current
          Designated Locations and Supplier's current actual freight costs from
          its manufacturing facilities and warehouses to each Designated
          Location. Supplier shall update this list from time to time as freight
          rates change and as Buyer adds or removes Designated Locations and as
          Supplier adds or removes manufacturing facilities and warehouses
          (subject to this Agreement).

     (b)  Buyer will have the option to take responsibility for transportation
          of the Products at one or more Designated Location(s), with at least
          thirty (30) days prior notification to the Supplier, at Buyer's sole
          cost and expense from the applicable manufacturing facility or
          warehouse. If Buyer assumes transportation responsibility:

          (i)  title and risk of loss to the Products will pass to Buyer at
               Supplier's plant or warehouse of origin, as the case may be; and

          (ii) Supplier will provide Buyer with pick up allowances of no less
               than Supplier's actual freight costs for the applicable
               Designated Location(s).

     (c)  In the event Supplier closes a plant or production line, Supplier will
          supply Buyer Group from another facility on the same terms, or will
          compensate Buyer for any additional price, transportation, film and
          plate costs that Buyer Group is required to pay or incur in order to
          obtain supply from any other supplier until Supplier has resumed
          supply to Buyer Group in accordance with this Agreement, and in any
          case without any disruption in supply of Products to Buyer Group.
          Buyer shall use its best commercial efforts to minimize such
          additional costs.

     (d)  Supplier will use back-up supply from other Supplier plants or
          purchase supply from other beverage can vendors when there are supply
          and/or quality problems that cannot be corrected soon enough without
          affecting supply to Buyer, and all supply shall be at the Prices and
          on the terms set out in this Agreement (with Supplier being
          responsible for any other additional film and plate costs).

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     (e)  CONFIDENTIAL TREATMENT REQUESTED

     (f)  If at any time during the Term of this Agreement any Products do not
          comply with the Specifications, including for such purposes the
          requirements contained in Sections 7(a) and 7(b), or Supplier is
          unable or unwilling to manufacture or supply the Buyer Group,
          CONFIDENTIAL TREATMENT REQUESTED with its agreed supply commitments in
          accordance with this Agreement, whether or not as a result of Force
          Majeure, Supplier shall use its best commercial efforts to replace the
          non-conforming Products within a time period that is acceptable to
          Buyer in Buyer's sole reasonable discretion. If the Supplier does not
          so replace the non-conforming Products or fails to so supply Products,
          unless caused by (A) a Force Majeure event that shuts down at least
          CONFIDENTIAL TREATMENT REQUESTED of Supplier Group's production
          capability for Products within or in respect of a given country (and
          for such purposes Canada and the United States shall be deemed to be a
          single country) or (B) the failure of Buyer or any other member of
          Buyer Group CONFIDENTIAL TREATMENT REQUESTED purchasing Products under
          this Agreement to comply with the terms of this Agreement, including
          without limitation Section 5(e) below, the following shall apply as
          Buyer's exclusive remedies, in addition to the remedies set forth in
          Section 6(b) and Section 8 below:

          (i)  Supplier shall indemnify Buyer Group, CONFIDENTIAL TREATMENT
               REQUESTED for all reasonable direct out-of-pocket losses, costs,
               damages and expenses suffered or incurred by them as a result of
               a failure by Supplier to replace or supply such Products,
               including without limitation, additional costs incurred by them
               to obtain Products or similar products from another supplier.

          (ii) CONFIDENTIAL TREATMENT REQUESTED

     (g)  Buyer Group, CONFIDENTIAL TREATMENT REQUESTED will use best commercial
          efforts to minimize any such costs, downtime and any other monies for
          which it seeks reimbursement from Supplier pursuant to this Section 4.
          Except as otherwise explicitly set out in this Agreement, Supplier
          Group shall in no event be liable for lost profits or other
          consequential or incidental damages

5.   PRODUCTION AND INVENTORY

     (a)  Buyer shall provide Supplier on a monthly basis with a 3-month rolling
          forecast of requirements by Designated Location. The Supplier
          acknowledges that any forecast provided by Buyer is a good faith
          estimate only, and is not a commitment on the part of Buyer or any
          other member of the Buyer Group CONFIDENTIAL TREATMENT REQUESTED to
          purchase any quantity of Products.

     (b)  Supplier shall supply each Designated Location from its closest
          applicable manufacturing location(s), however if the closest Supplier
          manufacturing location is more than 500 miles from a Designated
          Location or if the manufacturing location is across a body of water,
          Supplier and Buyer will jointly determine a list of SKUs and min/max
          inventory levels of at least thirty (30) days supply for each SKU to
          store and ship from a local

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          warehouse to be maintained by Supplier at its cost within 50 miles
          from the relevant Designated Location.

     (c)  Whenever the inventory level of any SKU reaches or falls below the
          pre-determined inventory amount equivalent of at least thirty (30)
          days supply, Supplier will replenish its local warehouse to the
          pre-determined levels within five (5) business days. The same
          procedure will apply on inventory of ends. The only exceptions to this
          program will be special order and/or cans intended for export out of
          the country in which such cans have been filled, which will be
          produced within 48 hours written notice and delivered within 96 hours
          if required by Buyer.

     (d)  Supplier shall provide to Buyer a detailed inventory report (including
          in-transit inventory) every month by the seventh (7th) day after the
          end of each month for the prior month for each warehouse and
          manufacturing location.

     (e)  Buyer shall fax its releases of requirements for each Designated
          Location for the following week (quantity by SKU) no later than
          Thursday noon. Releases will be in full truckload quantities with
          date/time required to arrive at the Designated Location.

     (f)  Supplier shall assign an employee to review inventory levels and
          forecasts with Buyer on a monthly basis, to assure optimum levels are
          kept and to avoid any slow movers and obsolescence.

     (g)  Prior to every shipment, Supplier will inspect all cans and ends prior
          to shipment to or pick up by Buyer to ensure they arrive at the
          Designated Locations free of damage (but even if any such
          inspection(s) disclose no damage Supplier shall nonetheless be
          responsible in accordance with this Agreement for any damage that
          occurs prior to risk of loss shifting to Buyer).

     (h)  The Supplier will be responsible for maintaining inventory levels
          sufficient to service the Buyer Group's requirements in keeping with
          Buyer's forecasts from time to time. The Supplier will be responsible
          for all freight, storage and handling charges associated with
          warehousing finished goods inventory.

6.   ADDITIONAL CLAUSES

     (a)  Super Ends

          At Buyer's request, Supplier will begin supplying Super Ends at the
          following annual rate for production within 90 days following
          qualification of such ends by Buyer at those Designated Locations
          where they are qualified:

               "SUPER END" AVAILABILITY:
                ------------------------

               2002:    100% of requirements of Buyer Group, CONFIDENTIAL
                        TREATMENT REQUESTED (North America)

               2003:    100% of requirements of Buyer Group, CONFIDENTIAL
                        TREATMENT REQUESTED (North America, UK (by no later
                        than October 1, 2003, CONFIDENTIAL TREATMENT REQUESTED

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                        and, by mutually agreeable timing, in Mexico
                        CONFIDENTIAL TREATMENT REQUESTED and Europe
                        CONFIDENTIAL TREATMENT REQUESTED)

               2004:    100% of requirements of Buyer Group, CONFIDENTIAL
                        TREATMENT REQUESTED (North America, Mexico CONFIDENTIAL
                        TREATMENT REQUESTED, UK CONFIDENTIAL TREATMENT
                        REQUESTED and Europe CONFIDENTIAL TREATMENT REQUESTED)

               2005:    100% of requirements of Buyer Group, CONFIDENTIAL
                        TREATMENT REQUESTED (North America, Mexico CONFIDENTIAL
                        TREATMENT REQUESTED, UK CONFIDENTIAL TREATMENT
                        REQUESTED and Europe CONFIDENTIAL TREATMENT REQUESTED)

               2006:    100% of requirements of Buyer Group, CONFIDENTIAL
                        TREATMENT REQUESTED (North America, Mexico CONFIDENTIAL
                        TREATMENT REQUESTED, UK CONFIDENTIAL TREATMENT
                        REQUESTED and Europe CONFIDENTIAL TREATMENT REQUESTED)

               in each case subject to the limitations otherwise set out in this
               Agreement. CONFIDENTIAL TREATMENT REQUESTED

               CONFIDENTIAL TREATMENT REQUESTED

     (b)  Missing and Damaged

          (i)  Supplier will take all necessary steps in order for cans and ends
               to arrive at Buyer's plants free of damage and according to
               quantities no less than what is reported on Bill of Lading.

          (ii) Supplier and Buyer will jointly monitor Supplier's performance
               with quarterly audits for incoming cans and ends from each
               ship-from location whether a Supplier manufacturing plant or
               warehouse location. CONFIDENTIAL TREATMENT REQUESTED

         (c)      Minimum Production Runs

                  Where required by Buyer Group, CONFIDENTIAL TREATMENT
                  REQUESTED the minimum production run will be CONFIDENTIAL
                  TREATMENT REQUESTED per SKU instead of the current
                  CONFIDENTIAL TREATMENT REQUESTED.

         (d)      Warehousing

                  (i)      Supplier will ensure that strict hygiene and handling
                           procedures are established and adhered to at all
                           warehouses whether these are Supplier controlled or
                           privately owned.

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                  (ii)     Warehousing costs will be Supplier's responsibility.

     (e)  Six Sigma Requirements

          Supplier shall comply with Buyer's Six Sigma requirements set forth
          CONFIDENTIAL TREATMENT REQUESTED.

     (f)  Qualification Procedure

          Qualification procedures and requirements to convert those plants
          which do not produce finished product using Supplier's Products will
          be supplied by Buyer within 60 days from the date this Agreement is
          signed. Upon mutual agreement of Supplier and Buyer, both acting
          reasonably and in good faith, these will become CONFIDENTIAL TREATMENT
          REQUESTED.

     (g)  Local Technical Support (at Supplier's cost)

          (i)  Seamer Service:

               A.   Supplier will assign a local seamer service representative
                    at each filling location with calls made every week.

               B.   Supplier will establish specific programs at each plant to
                    improve employee knowledge and skills in operating seamers
                    and to improve efficiency.

               C.   Supplier will also establish preventive maintenance programs
                    at every location.

          (ii) Can line efficiency and package integrity:

               A.   Supplier will assign a local Technical Service Manager at
                    each filling location with calls made on a regular basis.

               B.   The Technical Service Managers will work closely with
                    Buyer's Plant Managers to develop programs to improve
                    filling line efficiencies and diminish package damage during
                    filling, storage and distribution.

               Supplier will, in addition, perform support services at the rates
               CONFIDENTIAL TREATMENT REQUESTED for extraordinary requirements
               in addition to the services described above. Supplier will not
               charge Buyer for any technical support and expertise provided by
               Supplier's technical center with respect to third party claims.

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     (h)  Plant Communication / Qualification

          (i)   The names, titles, phone numbers (during and after office hours
                and weekends) and pager numbers of all key plant and warehouse
                personnel including sales and technical services are listed
                CONFIDENTIAL TREATMENT REQUESTED.

          (ii)  Supplier will update CONFIDENTIAL TREATMENT REQUESTED at a
                minimum every quarter or whenever there are changes to the list.

          (iii) Supplier will establish adequate Customer Service
                Representation and lines of communication at the local level
                among Buyer Group's, CONFIDENTIAL TREATMENT REQUESTED and
                Supplier's plants and warehouses.

           (iv) Supplier and Buyer will agree on a mutually acceptable date when
                Supplier will visit each filling location, it has been awarded
                in order to establish contacts and mutually agree on a plan for
                a seamless transition. This will include, among other things;
                plant visits, qualification, safety stock procedure,
                manufacturing and delivery lead times, trial run, warehousing,
                ordering procedure, QA/QC procedures, technical and sales
                representation. The date of visit will be no later than 120 days
                prior to Supplier beginning supplying these locations.

           (v)  Supplier will do same as above whenever it plans to start up a
                new beverage line or manufacturing plant to supply Products
                pursuant to this Agreement.

     (i)  New Customer Support

          When needed Supplier will provide Buyer Group, CONFIDENTIAL TREATMENT
          REQUESTED all the necessary support to help secure new business. This
          includes, Supplier and Buyer Group, CONFIDENTIAL TREATMENT REQUESTED
          visiting potential customers to present Supplier's capabilities,
          specifications, QA/QC procedures, producing sample runs, making plant
          visits, etc.

     (j)  CONFIDENTIAL TREATMENT REQUESTED

     (k)  Graphic and Plate Changes

          (i)   Buyer will supply Supplier with camera ready artwork for new
                designs and changes to existing designs. Supplier will pay for
                film and plate costs.

          (ii ) Supplier will charge CONFIDENTIAL TREATMENT REQUESTED for
                designs that are "wet on wet", require more than 4 color
                printing or white base coat, except that for any new SKUs in
                Buyer's system for which Buyer requires

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               white base coat Buyer and Seller must mutually agree on quantity,
               location and upcharge if any, CONFIDENTIAL TREATMENT REQUESTED
               and failing agreement Buyer shall be free to purchase such cans
               (and corresponding ends) from another supplier.

     (l)  Supplier shall provide Buyer with a detailed summary of its QA/QC
          procedures and allow Buyer to review Supplier's QA/QC procedures in
          full from time to time upon request (but not make copies thereof).

7.   REPRESENTATIONS; WARRANTIES; COVENANTS

     (a)  Supplier represents, warrants and covenants that:

          (i)   the Products will, at the time of receipt by Buyer Group,
                CONFIDENTIAL TREATMENT REQUESTED comply in all respects with all
                laws, regulatory policies, rules and orders (collectively
                "Laws") and conform in all respects to the Specifications and
                will be suitable and useable as a commercially acceptable
                container for beverages intended for human consumption;

          (ii)  the materials which Supplier uses in connection with the
                manufacture of the Products (A) will be free of defects in
                materials and workmanship and (B) will neither contain unsafe
                food additives nor be adulterated in any way (provided however
                in no event Supplier incur any liability under this warranty or
                that set out in (i) above where the containers are not packed,
                stored and distributed by Buyer in accordance with good business
                practice, or where the alleged damage results from rust or
                outside corrosion occurring after receipt of the Products by
                Buyer and not due to some defect with the Products, or from
                improper capping, closing, crimping, filling and gassing
                operations by Buyer);

          (iii) each pallet of Products shall have attached thereto a slip
                indicating the date and shift when such Products were produced
                and such other information as is mutually acceptable to the
                parties hereto;

          (iv)  Supplier has the necessary corporate authority and capacity to
                enter into this Agreement, and that the entering into by
                Supplier of this Agreement and the performance of its
                obligations hereunder will not contravene or violate or result
                in the breach (with or without the giving of notice or lapse of
                time, or both) or acceleration of any obligations of Supplier
                under the provisions of any license, permit or agreement to
                which Supplier is a party or by which it (or its assets) is
                bound; and

          (v)   Supplier has, and will continue to have during the Term of this
                Agreement, the necessary production and operational capacities
                and abilities to fulfil its obligations under this Agreement.

     (b)  Notwithstanding anything to the contrary contained in this Agreement,
          and in addition to the rights of Buyer Group and the obligations of
          Supplier set out in this Agreement, Supplier agrees to indemnify,
          defend and hold Buyer Group and all employees, agents, directors,
          officers, CONFIDENTIAL TREATMENT REQUESTED and third party customers
          of, and who contract with, Buyer, any member of Buyer Group,

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          CONFIDENTIAL TREATMENT REQUESTED to produce beverages for them
          (collectively, the "Buyer Indemnified Parties") harmless from and
          against any and all direct and indirect third party claims for
          personal injury or property damage to the extent arising from any
          breach by Supplier of any of the representations, warranties or
          covenants set forth in this Agreement, provided that Buyer gives
          Supplier prompt notice of such claim, cooperates in the defense
          thereof (which will include such matters as providing Buyer employees
          for interview, deposition and testimony at trial and production of
          relevant documents) and grants Supplier the right to handle, defend or
          otherwise dispose of such claim as it may determine at Supplier's sole
          cost and expense.

     (c)  In view of the warranties set forth above, Supplier makes no other
          warranty, whether of merchantability, fitness or otherwise, express or
          implied in fact or by law.

8.   TERMINATION AND DEFAULT

If the Supplier breaches this Agreement or any warranty, representation or
covenant contained in this Agreement, Buyer may notify the Supplier in writing
outlining the details of such breach. A failure by Buyer to notify the Supplier
is not a waiver by Buyer of any such breach or of any rights and remedies
available to Buyer as a result of such breach, except for the right to terminate
this Agreement. If the breach is not remedied by Supplier within thirty (30)
days from the date of written notification to remedy the breach, or, if the
breach cannot reasonably be remedied within thirty (30) days, if substantial
steps to commence a cure are not initiated within such thirty (30) day period,
then Buyer may, in addition to all of its other rights or remedies, whether
under this Agreement or in law or in equity, terminate this Agreement by
providing written notification thereof to the Supplier. In addition, this
Agreement may be terminated by either party upon the occurrence and continuance
of any of the following, such termination to be effective immediately upon
delivery of a written notice to the other party:

     (a)  If a petition in bankruptcy or under a similar applicable law shall be
          filed by or consented to by the other party, or if the other party
          makes a proposal to its creditors or seeks the appointment of a
          trustee, receiver, liquidator, custodian or other similar official for
          its business or assets or makes an assignment for the benefit of its
          creditors;

     (b)  If the other party becomes insolvent or ceases to carry on business,
          or takes action to liquidate assets, or stops making payments in the
          usual course of business;

     (c)  If a petition in bankruptcy or under a similar law shall be filed
          against the other party and shall remain undismissed or unstayed for a
          period of thirty (30) days; or

     (d)  If the other party's business or assets shall be placed in the hands
          of a trustee, receiver, liquidator, custodian or other similar
          official by any court, governmental or public authority or agency
          having jurisdiction, or if an order shall be made or resolution passed
          for the winding-up or the liquidation of the other party or if the
          other party adopts or takes any corporate proceedings for its
          dissolution or liquidation (other than as part of a bona fide
          corporate reorganization).

                                       12
<PAGE>

9.   FORCE MAJEURE

Neither party shall be liable for failure or delay in performance under this
Agreement due in whole or in part to causes beyond the reasonable control of
such party, including without limitation, acts of God, civil commotion,
sabotage, fire, flood, explosion, acts of any government, unforeseen shortages
or unavailability of fuel, power, inability to obtain or delay in obtaining
governmental approvals, permits, licenses or allocations, and any other causes
which are not within the reasonable control of the party affected, whether or
not of the kind specifically enumerated above; provided, however, such shall not
excuse Buyer or the Supplier from paying any amounts due the other hereunder.
Either party affected by any such circumstances shall promptly give written
notice thereof to the other party. During any such period of Force Majeure
affecting the Supplier, the Supplier shall allocate its available supply among
its customers in the same proportion as existed before the occurrence of any
such circumstances. Performance of this Agreement shall be resumed as quickly as
reasonably possible after the party affected by any such circumstances has
notified the other party that the condition(s) is/are remedied. In the event raw
material supplies are reduced by the Supplier's vendors, the Supplier shall
balance such reductions proportionately to all the Supplier's customers of
products similar to the Products. Purchase and/or supply obligations would be
reduced only to the extent of the direct effect of the respective Force Majeure
circumstance. If the Buyer Group purchases products similar to the Products as a
result of a force majeure circumstance affecting the Supplier, any such
purchases shall count towards any volume rebates or discounts and/or purchasing
obligations of Buyer under this Agreement.

10.  PATENTS, TRADEMARKS, COPYRIGHTS, AND UNFAIR COMPETITION

The Supplier warrants to Buyer that the Products manufactured and the use
thereof in the form furnished by the Supplier excluding any labels or
specifications supplied by Buyer will not infringe any United States or Canadian
patents, trademarks, copyrights or other rights of third parties. In the event
of a claim of any such infringement and provided that the Supplier is notified
thereof promptly upon Buyer becoming aware of such infringements and provided
further that the Supplier is given the complete defense of such action at its
sole cost and expense, the Supplier agrees to defend, indemnify, and hold the
Buyer Indemnified Parties harmless from and against awards of claims against any
or all of the Buyer Indemnified Parties as the result of such infringement. Upon
the institution of any suit or action alleging infringement against any or all
of the Buyer Indemnified Parties, the Supplier may (i) pay the amounts claimed,
provided that prior to such payment the Supplier obtains a full and final
release of the claim in favour of the applicable Buyer Indemnified Parties, in
form and substance satisfactory to Buyer, or (ii) furnish non-infringing
Products, provided they are acceptable to Buyer, or (iii) at the Supplier's sole
option, continue to supply the allegedly infringing Products, provided that in
such event the Supplier shall indemnify, defend and hold harmless Buyer
Indemnified Parties in respect of any claims which any Buyer Indemnified Party
is subjected to on account of infringement if in such suit or action it is held
that the manufacture or use of such Products did infringe a United States or
Canadian patent, trademark, copyright or other right.

11.  CONFIDENTIALITY

Neither party (in this clause, the "Covenantor") shall disclose to any third
party the price, terms, conditions, purchasing patterns, forecast, or provisions
(other than the existence) of this Agreement or any information obtained from
the other party (in this clause, the "Covenantee") which would reasonably be
considered confidential or proprietary to the Covenantee without the express
written consent of the

                                       13
<PAGE>

Covenantee, unless disclosure is required by law, regulation, securities
commission, or stock exchanges. If such disclosure is required, Buyer and
Supplier shall use their best commercial efforts to obtain confidential
treatment and redaction of the pricing terms of this Agreement and related
CONFIDENTIAL TREATMENT REQUESTED provisions of this Agreement. Buyer and
Supplier agree that the contents of this Agreement are extremely confidential.
CONFIDENTIAL TREATMENT REQUESTED Nothing in this Section 11 prohibits either
party from disclosing any information to members of the Buyer Group or Supplier
Group, as the case may be, or to their respective professional advisors.

12.  NOTICES

Any notice or other communication required or desired to be given by this
Agreement shall be in writing and delivered by facsimile transmission,
registered or certified mail, return receipt requested, or by personal or
nationally recognized courier delivery. Any notice or other communication
transmitted by facsimile shall be deemed to be received when sent so long as
there is valid written confirmation of receipt of the entire transmission. If
sent by registered or certified mail, it shall be deemed received 3 business
days after the mailing thereof. If a notice or other communication is dispatched
by personal or national recognized courier delivery, it shall be deemed to have
been received upon the delivery thereof to such address. Any notice or other
communication shall be sent to the address given below of the party to be
notified, unless such party has previously notified the other of a change of
address, in which case the notice or other communication shall be sent to such
changed address:

     (a)  the Supplier:      Crown Cork & Seal Company, Inc.
                             One Crown Way
                             Philadelphia, PA 19154
                             Attention: VP, Sales - Beverage Division
                             Fax No.: (215) 698-5335

          with (in the case of default notices), a copy to:

                             Crown Cork & Seal Company, Inc.
                             One Crown Way
                             Philadelphia, PA 19154
                             Attention: General Counsel
                             Fax No.: (215) 698-6061

     (b)  Buyer:  Cott Corporation

                             333 Avro Avenue
                             Pointe-Claire, Quebec H9R 5W3
                             Attention:  VP, Global Procurement
                             Fax No.: (514) 428-0180

                                       14
<PAGE>

          with (in the case of default notices), a copy to:

                             Cott - Legal Department
                             207 Queen's Quay West, Suite 340
                             Toronto, Ontario M5J 1A7
                             Attention: General Counsel
                             Fax No.: (416) 203-5609

If any notice or other communication is transmitted or delivered or deemed
received after 4:00 PM (E.D.T.) on any day or on a non-business day, it shall be
deemed received on the next business day.

13.  INTERPRETATION

When applicable, use of the singular form of any word shall mean or apply to the
plural, and the neuter form shall mean or apply to the feminine, masculine or
plural. The captions in this Agreement, including the heading to sections and
paragraphs, are for convenience of reference only and shall not affect its
interpretation or construction.

14.  EXHIBITS

All exhibits and all schedules or attachments to exhibits or schedules
referenced in this Agreement as annexed hereto are incorporated herein by
reference and made a part hereof. From time to time, any exhibit, schedule or
attachment may be amended. Once amended, the restated exhibit, schedule or
attachment incorporating such amendments shall be executed in accordance with
Section 15 hereof and then annexed to this Agreement.

15.  AMENDMENTS

This Agreement may not be amended except in a writing executed by authorized
officers of both parties. All such revisions shall as of their effective date
automatically become a part of this Agreement.

16.  GENERAL

If any provision of this Agreement, whether a paragraph, sentence or portion
thereof, is determined by a court of competent Jurisdiction to be null and void
or unenforceable, such provision shall be deemed to be severed, and the
remaining provisions of this Agreement shall remain in full force and effect.
Neither party shall be deemed to have waived any right, power, privilege, or
remedy unless such waiver is in writing and duly executed by it. No failure to
exercise, delay in exercising or course of dealing respect to any right, power,
privilege or remedy shall operate as a waiver thereof by either party or of any
other right, power, privilege or remedy. No exercise or partial exercise of any
right, power, privilege or remedy shall preclude any other of further exercise
thereof by either party or the exercise of any other right, power, privilege or
remedy by either party.

17.  PRIOR AGREEMENTS AND MERGER

This Agreement contains the entire agreement of the parties and there are no
agreements, representations or understandings with respect to the subject matter
hereof other than those stated or referred to herein or signed. This Agreement
supersedes any and all other agreements, representations or understandings,

                                       15
<PAGE>

written or oral, between the parties to this Agreement with respect to the
subject matter hereof made prior to the date of execution of this Agreement.

18.  GOVERNING LAW

This Agreement shall be governed by and enforced in accordance with the laws of
the State of New York, without regard to conflicts of laws principles. The
parties hereby attorn to the non-exclusive jurisdiction of the courts of the
State of New York.

19.  ASSIGNMENT

Neither this Agreement nor the rights or the obligations of the Supplier under
this Agreement shall be assigned or otherwise disposed of by the Supplier,
except to a wholly owned subsidiary of Supplier, without the prior written
consent of Buyer, which consent shall not be unreasonably withheld. An indirect
or direct change of control of the Supplier in law or in fact shall be deemed an
assignment of this Agreement by the Supplier; provided, however, that an
internal reorganization involving the creation of a new publicly traded holding
company that owns 100% of Supplier (for example the 2003 creation of Crown
Holdings, Inc) shall not be deemed such a change of control. Subject to the
foregoing provisions of this Section 19, this Agreement shall be binding upon
and enure to the benefit of the parties hereto and their respective successors
and assigns.

20.  CURRENCY

Unless otherwise expressly indicated, all dollar amounts in this Agreement refer
to lawful currency of United States of America.

21.  TIME OF THE ESSENCE

In this Agreement, time shall be of the essence.

IN WITNESS WHEREOF the parties have executed this Agreement on the 11th day of
November, 2003, but with effect as of the 1st day of January, 2002.

CROWN CORK & SEAL COMPANY, INC.       COTT CORPORATION

BY     /s/ William T. Gallagher       BY     /s/  John Sheppard
       --------------------------            -----------------------------------
NAME:  William T. Gallagher           NAME:  John Sheppard
TITLE: Vice President                 TITLE: President & COO

                                      BY     /s/  Ivan Grimaldi
                                             -----------------------------------
                                      NAME:  Ivan Grimaldi
                                      TITLE: Vice President, Global Procurement

                                       16
<PAGE>

                                  SCHEDULE 1(a)
                                  -------------

                        CONFIDENTIAL TREATMENT REQUESTED

                                       17
<PAGE>

                                 SCHEDULE 1(b.1)
                                 ---------------

                        CONFIDENTIAL TREATMENT REQUESTED

                                       18
<PAGE>

                                 SCHEDULE 1(b.2)
                                 ---------------

                        CONFIDENTIAL TREATMENT REQUESTED

                                       19
<PAGE>

                                  SCHEDULE 1(f)
                                  -------------

                        CONFIDENTIAL TREATMENT REQUESTED

                                       20
<PAGE>

                                  SCHEDULE 3(a)

                        CONFIDENTIAL TREATMENT REQUESTED

                                       21
<PAGE>

                                  SCHEDULE 3(g)

                        CONFIDENTIAL TREATMENT REQUESTED

                                       22
<PAGE>

                                  SCHEDULE 4(a)

                        CONFIDENTIAL TREATMENT REQUESTED

                                       23
<PAGE>

                                  SCHEDULE 6(e)

                        CONFIDENTIAL TREATMENT REQUESTED

                                       24
<PAGE>

                                  SCHEDULE 6(f)

                        CONFIDENTIAL TREATMENT REQUESTED

                                       25
<PAGE>

                                  SCHEDULE 6(g)

                        CONFIDENTIAL TREATMENT REQUESTED

                                       26
<PAGE>

                                  SCHEDULE 6(h)

                        CONFIDENTIAL TREATMENT REQUESTED

                                       27PEET'S OPERATING COMPANY, INC.
                             KEY EMPLOYEE AGREEMENT
                                       FOR
                             CHIEF FINANCIAL OFFICER

     This  Key  Employee  Agreement ("Agreement") is entered into as of the 25th
day  of  June,  2003,  by  and  between  Thomas  Cawley ("Executive") and PEET'S
OPERATING  COMPANY,  INC.  (the  "Company"),  a  Washington  corporation  and  a
wholly-owned  subsidiary  of Peet's Coffee & Tea, Inc. (successor in interest to
PEET'S  COMPANIES,  INC.)  (the  "Parent").

WHEREAS, the Company desires to employ Executive to provide personal services to
the  Company,  and  wishes  to  provide  Executive with certain compensation and
benefits  in  return  for  his  services;

WHEREAS,  the Company has adopted the Peet's Coffee & Tea Key Employee Severance
Benefit  Plan  (the  "Key  Employee Plan") and the Parent has adopted the Peet's
Coffee  &  Tea, Inc. (as successor in interest to Peet's Companies, Inc.) Change
of  Control  Option  Acceleration  Plan  (the  "Option  Acceleration Plan"); and

WHEREAS,  Executive  wishes  to  be employed by the Company and provide personal
services  to  the  Company  in  return  for  certain  compensation and benefits,
including  the  benefits  provided  under  the  Key Employee Plan and the Option
Acceleration  Plan;

NOW,  THEREFORE, in consideration of the mutual promises and covenants contained
herein,  it  is  hereby  agreed  by  and  between the parties hereto as follows:

1.     EMPLOYMENT  BY  THE  COMPANY.

     1.1     TITLE AND RESPONSIBILITIES.  Subject to terms set forth herein, the
Company  agrees  to  employ Executive in the position of chief financial officer
and Executive hereby accepts employment effective as of the date set forth above
(the "Effective Date").   During his employment with the Company, Executive will
devote his best efforts and substantially all of his business time and attention
(except  for  vacation  periods  as  set  forth herein and reasonable periods of
illness  or  other  incapacity  permitted  by  the  Company's general employment
policies)  to  the  business  of  the  Company.

1.2     EXECUTIVE  POSITION.  Executive  will serve in an executive capacity and
shall  perform  such  duties as are customarily associated with his then current
title,  consistent  with  the  Bylaws  of  the  Company  and  as required by the
Company's  or the Parent's Board of Directors, as the case may be (the "Board").

1.3     COMPANY  EMPLOYMENT  POLICIES.  The  employment relationship between the
parties  shall also be governed by the general employment policies and practices
of  the  Company,  including  those  relating  to  protection  of  confidential
information  and  assignment  of  inventions, except that when the terms of this
Agreement  differ  from or are in conflict with the Company's general employment
policies  or  practices,  this  Agreement  shall  control.

                                        1
<PAGE>

2.     COMPENSATION.

     2.1     SALARY.  Executive  shall  receive  for  services  to  be  rendered
hereunder the base salary specified in that certain employment letter dated June
16,  2003  (the  "Employment  Letter"),  a  copy of which is attached hereto and
incorporated  by  this  reference  herein.  Such  salary  shall  be payable on a
biweekly  basis.  Executive  will  be  considered  for  annual increases in base
salary  in  accordance with Company policy and subject to review and approval by
the  Compensation  Committee  of  the  Board  (the  "Compensation  Committee").

2.2     BONUS.  Executive  shall  be  eligible for a bonus for the calendar year
2003,  in  the  form of a grant of options to purchase stock of the Parent, on a
pro  rata  basis in an amount to be determined by the Chief Executive Officer of
the  Company  pursuant  to  the  executive  level  bonus  plan in effect for the
calendar  year  2003.  Executive may be eligible to participate in the Company's
executive  level  bonus  plan,  if  any,  throughout the duration of Executive's
employment  with  the Company, solely upon the discretion of the Chief Executive
Officer  and  the  Board.  No  bonus  other  than as specified in the Employment
Letter  is guaranteed to Executive.  Any bonus is subject to the approval of the
Board, which retains the authority to review, grant, deny or revise any bonus in
its  sole  discretion.

2.3     STOCK  OPTIONS.   Executive  will receive an initial grant of options to
purchase  stock  of the Parent in the amount specified in the Employment Letter,
the  terms  of  such  options  to be governed by the terms and conditions of the
Parent's  applicable  stock  option  plan  pursuant  to  which  such options are
granted.  Executive and the Company each acknowledge that Executive's options(s)
to  purchase  stock  of  the  Parent  (the "Options") shall remain in effect and
continue  to  vest  during the period of Executive's employment with the Company
pursuant  to  the terms of the Options; provided, however, that upon termination
of  Executive's  employment  with  the  Company for any reason (except Change of
Control  Termination),  including but not limited to a termination for Cause, by
resignation  in  the  absence  of  a  Constructive  Termination,  involuntary
termination of Executive's employment by the Company without Cause, or voluntary
termination  by the Executive due to Constructive Termination, the Options shall
cease  vesting  as  of  the  termination  or resignation date and be exercisable
thereafter only pursuant to the terms of the Options and the Parent's applicable
stock  option  plans,  unless otherwise provided in the Key Employee Plan or the
Option  Acceleration  Plan.  Upon  a  Change of Control Termination, all Options
held  by  Executive shall have their vesting accelerated in full so as to become
one  hundred percent (100%) vested and immediately exercisable in full as of the
date  of  such  termination.  Subject  to the Compensation Committee's approval,
Executive will be considered for additional grants of options to purchase shares
of  the  Parent,  pursuant to the terms and conditions set forth in the Parent's
2000  Equity  Incentive  Plan,  a  copy  of  which is available upon Executive's
request  or  any  successor  plan.

                                        2
<PAGE>

2.4     STANDARD  COMPANY  BENEFITS.  Executive  shall be entitled to all rights
and  benefits  for  which  he  is eligible under the terms and conditions of the
standard Company benefits and compensation practices which may be in effect from
time  to  time  and  provided  by  the  Company  to  its  employees  generally.

2.5     SEVERANCE  AND  CHANGE  OF  CONTROL  PLANS.  Executive  is  eligible for
participation in, and benefits pursuant to, the Key Employee Plan and the Option
Acceleration Plan.  Executive acknowledges receipt of a copy of the Key Employee
Plan  and  the  Option  Acceleration  Plan.  Pursuant  to the Key Employee Plan,
Executive  shall be eligible to participate in an outplacement program for up to
six  (6)  months,  at  a  cost  not exceeding ten thousand dollars ($10,000.00),
provided,  however,  that  the  provider  of  such  outplacement program must be
reasonably  acceptable  to  the  Company  and  Executive provides to the Company
adequate  proof  of  the  expenses  incurred.

3.     CONFIDENTIAL  INFORMATION,  RIGHTS  AND  DUTIES.

     3.1     AGREEMENT.

     (A)     CONFIDENTIAL  INFORMATION.  Executive  specifically  agrees that he
shall not at any time, either during or subsequent to the term of the Employee's
employment  with the Company, in any fashion, form or manner, either directly or
indirectly,  unless  expressly  consented  to  in  writing  by the Company, use,
divulge,  disclose  or  communicate  to  any  person  or entity any confidential
information  of any kind, nature or description concerning any matters affecting
or  relating  to the business of the Company, including, but not limited to, the
Company's  sales  and  marketing  methods,  programs  and related data, or other
written  records  used  in  the  Company's  business;  the  Company's  computer
processes,  programs and codes; the names, addresses, buying habits or practices
of  any  of  its  clients or customers; compensation paid to other employees and
independent  contractors  and  other  terms  of  this  employment or contractual
relationships; or any other confidential information of, about or concerning the
business  of  the  Company, its manner of operations, or other data of any kind,
nature  or description.  The parties to this Agreement hereby stipulate that, as
between  them,  the  above  information  and  items  are important, material and
confidential  trade  secrets that affect the successful conduct of the Company's
business and its good will, and that any breach of any term of this section is a
material  breach  of  this  Agreement.  All  equipment,  notebooks,  documents,
memoranda,  reports,  files,  samples,  books,  correspondence,  lists  or other
written  and  graphic  records,  and  the like, including tangible or intangible
computer  programs,  records  and data, affecting or relating to the business of
the Company, which the Employee might prepare, use construct, observe, posses or
control,  shall  be  and  shall  remain  the  Company's  sole  property.

(B)     EXCLUSIVE  PROPERTY.  Executive agrees that all business procured by the
Executive  while  employed  by the Company is and shall remain the permanent and
exclusive  property  of  the  Company.  Executive  further  agrees  that  the
relationship  with  the  Company  of  each  of  the  employees  and  independent
contractors  of  the  Company is a significant and valuable asset of the Company
and all such relationships shall at all times, both during and subsequent to the
termination  of  Executive's  employment,  be  treated as the sole and exclusive
property  of  the  Company.

                                        3
<PAGE>

(C)     NON-INTERFERENCE.  Any  interference  with  the  Company's  business,
property, confidential information, trade secrets, clients, customers, employees
or  independent contractors by the Executive or any of Executive's agents during
or after the term of Executive's employment shall be treated and acknowledged by
the  parties  as  a  material  breach  of  this  Agreement.

     3.2     REMEDIES.  Executive's  duties  under  this Section 3 shall survive
termination  of Executive's employment with the Company.  Executive acknowledges
that  a  remedy  at  law for any breach or threatened breach by Executive of the
provisions  of  the  Proprietary  Information  and Inventions Agreement would be
inadequate, and Executive therefore agrees that the Company shall be entitled to
injunctive  relief  in  case  of  any  such  breach  or  threatened  breach.

4.     OUTSIDE  ACTIVITIES.

     4.1     ACTIVITIES.  Except  with  the  prior written consent of the Board,
Executive will not during his employment with the Company undertake or engage in
any  other  employment,  occupation  or  business enterprise, other than ones in
which  Executive  is  a  passive  investor.  Executive  may  engage in civic and
not-for-profit activities so long as such activities do not materially interfere
with  the  performance  of  his  duties  hereunder.

4.2     INVESTMENTS  AND  INTERESTS.  Executive agrees not to acquire, assume or
participate  in,  directly  or  indirectly, any position, investment or interest
known  by  him  to  be  adverse  or antagonistic to the Company, its business or
prospects,  financial  or  otherwise.

4.3     NON-COMPETITION.  During his employment by the Company, except on behalf
of  the  Company,  Executive  will  not  directly  or  indirectly, whether as an
officer,  director, stockholder, partner, proprietor, associate, representative,
consultant,  or  in  any  capacity  whatsoever  engage  in,  become  financially
interested  in,  be  employed  by or have any business connection with any other
person,  corporation,  firm,  partnership  or other entity whatsoever which were
known  by him to compete directly with the Company, throughout the world, in any
line  of  business  engaged  in  (or  planned  to be engaged in) by the Company.

5.     TERMINATION  OF  EMPLOYMENT.

     5.1     TERMINATION  WITH  OR  WITHOUT  CAUSE.

     (A)     AT-WILL  EMPLOYMENT.  Executive's  relationship with the Company is
at-will.  The  Company  shall have the right to terminate Executive's employment
with  the  Company at any time with or without Cause and with or without notice.

                                        4
<PAGE>

(B)     DEFINITION.  For  purposes of this Agreement, "Cause" will be determined
in  the  sole  discretion  of  the  Company, based upon its objective reasonable
belief  that  Executive  has  committed or there has occurred one or more of the
following:  (i)  conviction of, a guilty plea with respect to, or a plea of nolo
contendere  to a charge that the Executive has committed a felony under the laws
of  the  United  States  or  of  any state or a crime involving moral turpitude,
including,  but  not  limited  to,  fraud, theft, embezzlement or any crime that
results in or is intended to result in personal enrichment at the expense of the
Company;  (ii)  material  breach  of  any  agreement  entered  into  between the
Executive  and  the  Company  that impairs the Company's interest therein; (iii)
willful  misconduct,  significant  failure  of  the  Executive  to  perform  the
Executive's duties, or gross neglect by the Executive of the Executive's duties;
or  (iv)  engagement  in  any  activity  that constitutes a material conflict of
interest  with  the  Company.

(C)     TERMINATION  FOR CAUSE. If the Company terminates Executive's employment
at  any  time  for  Cause,  Executive's  salary  shall  cease  on  the  date  of
termination, and Executive will not be entitled to severance pay, pay in lieu of
notice  or  any  other  such  compensation.

     5.2     VOLUNTARY  OR  MUTUAL  TERMINATION.

     (A)     VOLUNTARY  TERMINATION.  Executive  may  voluntarily  terminate his
employment  with  the  Company  at any time, after which no further compensation
will  be  paid to Executive, except as specifically set forth herein, in the Key
Employee  Plan  or  in  the  Option  Acceleration  Plan.

(B)     NO  SEVERANCE  PAY.  In  the  event Executive voluntarily terminates his
employment other than due to a Constructive Termination, he will not be entitled
to  severance  pay, pay in lieu of notice or any other such compensation, except
as  provided  in  the  Key  Employee  Plan  or  the  Option  Acceleration  Plan.

(C)     DEFINITION.  For  purposes of this Agreement, "Constructive Termination"
shall  mean  any  one  of  the  following  events  which  occurs on or after the
Effective  Date  of this Agreement: (i) reduction of the Executive's annual base
salary  by  greater than ten percent (10%), except to the extent the annual base
salary of all other executive officers of the Company is similarly reduced; (ii)
material  reduction  in  the package of welfare benefit plans, taken as a whole,
provided  to  the Executive (except that employee contributions may be raised to
the  extent of any cost increases imposed by third parties) or any action by the
Company which would materially adversely affect the Executive's participation or
reduce  the  Executive's  benefits  under  any  such  plans; (iii) change in the
Executive's  responsibilities,  authority,  title,  reporting  relationship  or
offices  that  results  in  a  significant  diminution  of  position  under  the
circumstances,  excluding  for  this  purpose  an  isolated,  insubstantial  and
inadvertent  action  not  taken  in  bad  faith which is remedied by the Company
promptly  after  notice thereof is given by the Executive; (iv) request that the
Executive  relocate to a work site that is more than thirty-five (35) miles from
his  prior  work site, unless the Executive accepts such relocation opportunity;
(v)  any material breach by the Company of its obligations under this Agreement;
or (vi) any failure by the Company to obtain the assumption of this Agreement by
any  successor  or  assign  of  the  Company.

                                        5
<PAGE>

     5.3     SEVERANCE  BENEFITS.  In  the  event  the  Company  terminates
Executive's  employment without Cause, or if Executive terminates his employment
due to a Constructive Termination, Executive shall be eligible for the severance
benefits  provided pursuant to a Covered Termination under the Key Employee Plan
(as identified in the Key Employee Plan's Schedule of Benefits for the Company's
Vice  Presidents), subject to Executive's signing and making effective a Release
Agreement  as set forth in Section 9 below.  This Section 5.3 shall not apply if
Executive's  employment  is terminated in a Change of Control Termination or due
to  death  or  Disability  (as such terms are defined in the Key Employee Plan).

     Notwithstanding anything to the contrary set forth in this Agreement or the
Key Employee Plan, in the event Executive is eligible for the severance benefits
provided  pursuant to a Covered Termination, Executive shall only be entitled to
receipt  of a Pro Rata Bonus if the Company's executive level bonus plan for the
year  in  which  such  termination occurs is a cash bonus plan (as distinguished
from  a  stock  option  plan).

     5.4     CESSATION.  If Executive violates any provision of Sections 3, 7 or
8  of this Agreement, any severance payments or other benefits being provided to
Executive  will  cease  immediately,  and  Executive will not be entitled to any
further  compensation  from  the  Company.

6.     CHANGE  OF  CONTROL.

     6.1     DEFINITION.  For purpose of this Agreement, Change of Control means
the  occurrence  of  any of the following:  (i) a sale of sixty percent (60%) or
more  of the assets of the Company or the Parent; (ii) a merger or consolidation
involving  the  Company  or the Parent in which the Company or the Parent is not
the  surviving  corporation and the shareholders of the Parent immediately prior
to  the  completion  of such transaction hold, directly or indirectly, less than
fifty  percent  (50%)  of  the  beneficial ownership (within the meaning of Rule
13d-3  promulgated  under  the  Securities Exchange Act of 1934, as amended (the
"Exchange  Act"),  or  comparable  successor  rules)  of  the  securities of the
surviving  corporation  (excluding  any  shareholders who possessed a beneficial
ownership  interest in the surviving corporation prior to the completion of such
transaction);  (iii)  a  reverse  merger  involving the Company or the Parent in
which  the  Company  or  the  Parent,  as  the  case  may  be,  is the surviving
corporation  but  the shares of  common stock of the Company or the Parent  (the
"Common  Stock")  outstanding  immediately preceding the merger are converted by
virtue  of  the  merger  into other property, whether in the form of securities,
cash  or otherwise, and the shareholders of the Parent, immediately prior to the

                                        6
<PAGE>

completion  of  such  transaction  hold, directly or indirectly, less than fifty
percent  (50%)  of  the  beneficial  ownership (within the meaning of Rule 13d-3
promulgated  under  the  Exchange  Act,  or  comparable  successor rules) of the
surviving  entity  or,  if  more  than  one entity survives the transaction, the
controlling  entity;  (iv)  an acquisition by any person, entity or group within
the  meaning  of  Section  13(d)  or 14(d) of the Exchange Act or any comparable
successor  provisions  (excluding  any  employee benefit plan, or related trust,
sponsored  or  maintained  by the Company or an Affiliate of the Company) of the
beneficial  ownership  (within  the  meaning of Rule 13d-3 promulgated under the
Exchange  Act, or comparable successor rules) of securities of the Company or of
the  Parent  representing  at  least  fifty percent (50%) of the combined voting
power  entitled  to vote in the election of directors; or, (v) in the event that
the individuals who, as of the Effective Date, are members of the Parent's Board
of  Directors  (the  "Incumbent  Board"),  cease for any reason to constitute at
least fifty percent (50%) of the Parent's Board of Directors.  (If the election,
or  nomination  for  election by the Parent's shareholders, of any new member of
the  Parent's Board of Directors is approved by a vote of at least fifty percent
(50%) of the Incumbent Board, such new member of the Parent's Board of Directors
shall  be  considered  as a member of the Incumbent Board.)  Notwithstanding the
foregoing,  for  the  purposes of this Agreement and with respect to any and all
clauses  of  this  Section  of this Agreement, an initial public offering of the
securities  of the Company (an "IPO") or any transactions or events constituting
part  of  an IPO shall not be deemed to constitute or in any way effect a Change
of  Control.

6.2     CHANGE OF CONTROL TERMINATION.  In the event Executive's employment with
the  Company  terminates due to a Change of Control Termination (as such term is
defined  in  the  Key  Employee  Plan), then Executive shall be eligible for the
benefits  provided  under  a  Change  of Control Termination pursuant to the Key
Employee  Plan.

6.3     STOCK  OPTIONS.  In  the  event  of  a  Change  of  Control, Executive's
outstanding  Options shall have their vesting accelerated to the extent provided
in  the  Option  Acceleration Plan or in applicable option agreements evidencing
such  outstanding  Options.

6.4     PARACHUTE  PAYMENTS.  In  the  event that the severance, acceleration of
stock  options  and  other  benefits provided for in this Agreement or otherwise
payable  to  Executive (i) constitute "parachute payments" within the meaning of
Section  280G (as it may be amended or replaced) of the Internal Revenue Code of
1986,  as  amended  or  replaced (the "Code") and (ii) but for this Section 6.4,
would be subject to the excise tax imposed by Section 4999 (as it may be amended
or replaced) of the Code (the "Excise Tax"), then Executive's benefits hereunder
shall  be  either

     (A)     provided  to  Executive  in  full,  or

(B)     provided  to  Executive only as to such lesser extent which would result
in  no  portion  of  such  benefits  being  subject  to  the  Excise  Tax,

                                        7
<PAGE>

whichever  of the foregoing amounts, taking into account the applicable federal,
state  and  local  income  taxes  and  the Excise Tax, results in the receipt by
Executive  on  an  after-tax  basis,  of  the  greatest  amount  of  benefits,
notwithstanding  that  all or some portion of such benefits may be taxable under
the Excise Tax. Unless the Company and Executive otherwise agree in writing, any
determination  required  under this Section 6.4 shall be made in writing in good
faith  by the Company's independent public accountants  (the "Accountants").  In
the  event  of  a  reduction in benefits hereunder, Executive shall be given the
choice  of  which  benefits  to  reduce. For purposes of making the calculations
required  by  this  Section 6.4, the Accountants may make reasonable assumptions
and  approximations concerning applicable taxes and may rely on reasonable, good
faith  interpretations  concerning  the application of the Code. The Company and
Executive shall furnish to the Accountants such information and documents as the
Accountants  may  reasonably request in order to make a determination under this
Section  6.4.  The  Company  shall bear all costs the Accountants may reasonably
incur  in  connection  with  any  calculations contemplated by this Section 6.4.

     7.     RESTRICTIVE  COVENANT.

     In the event Executive's employment with the Company is terminated due to a
Change  in  Control  Termination  (as  such  term is defined in the Key Employee
Plan),  then  for  two  (2)  years  immediately  following the termination date,
Executive  shall  not, without first obtaining the prior written approval of the
Company,  directly  or  indirectly  engage  or  prepare  to engage in the coffee
business in any way or in any place, or directly or indirectly engage or prepare
to  engage  in  any  other activities in competition with the Company, or accept
employment  or  establish  a business relationship with a business engaged in or
preparing  to  engage  in  competition  with  the  Company,  in any geographical
location  in  which  the  Company  as of the termination date either conducts or
plans  to  conduct business.  If Executive violates this Section 7, it is agreed
that any severance benefits otherwise due to be received by Executive after such
violation  will immediately cease, and further that (a) despite the cessation of
such  benefits,  the  release  provided  by  Executive  in  connection with such
benefits  will  remain  in full force and effect and (b) the Company's remedy of
cessation  of  payment  of  severance  benefits  to  Executive is non-exclusive.

     8.     NONINTERFERENCE.

     While  employed by the Company, and for two (2) years immediately following
the  termination  of  Executive's employment, Executive shall not to directly or
through  others  solicit,  attempt  to  solicit,  induce, or otherwise cause any
employee  or  independent  contractor  or  consultant  to  terminate  his or her
relationship  with  the  Company  in  order to become an employee, consultant or
independent  contractor to or for any other person or entity.  For two (2) years
immediately following the termination of Executive's employment, Executive shall
not directly or indirectly solicit (for a business competitive with the Company)
the  business of any customer of the Company that at the time of the termination
of  Executive's  employment or one (1) year immediately prior thereto was listed
on  the  Company's  customer  list.  If Executive violates this Section 8, it is

                                        8
<PAGE>

agreed  that  any  severance  benefits otherwise due to be received by Executive
after  such  violation  will immediately cease, and further that (a) despite the
cessation of such benefits, the release provided by Executive in connection with
such  benefits will remain in full force and effect and (b) the Company's remedy
of  cessation  of  payment  of severance benefits to Executive is non-exclusive.

9.     RELEASE.   In  exchange  for  the  benefits and other consideration under
this  Agreement  to  which  Executive would not otherwise be entitled, Executive
shall enter into and execute a release substantially in the form attached hereto
as  Exhibit  A  (the  "Release") upon his termination of employment.  Unless the
Release  is executed by Executive and delivered to the Company within twenty-one
(21)  days  after  the  termination  of Executive's employment with the Company,
Executive shall not receive any severance benefits provided under this Agreement
or under the Key Employee Plan.  Additionally, unless the Release is executed by
Executive  and  delivered  to  the Company within twenty-one (21) days after the
termination  of  Executive's  employment  with  the Company, the acceleration of
Executive's  Options  upon  a  Change of Control Termination as provided in this
Agreement shall not apply and Executive's Options in such event may be exercised
following  the date of Executive's termination only to the extent provided under
their  original  terms in accordance with the Peet's Companies, Inc. 1997 Equity
Incentive  Plan  (or  other applicable stock option plan), the applicable option
agreements  and  the  Option  Acceleration  Plan.

     10.     GENERAL  PROVISIONS.

     10.1     NOTICES.  Any  notices  provided  hereunder must be in writing and
shall  be  deemed  effective  upon  the  earlier of personal delivery (including
personal  delivery  by  facsimile transmission or the third day after mailing by
first class mail, to the Company at its primary office location and to Executive
at  his  address  as  listed  on  the  Company  payroll.

10.2     SEVERABILITY.  Whenever possible, each provision of this Agreement will
be interpreted in such manner as to be effective and valid under applicable law,
but  if  any  provision  of  this  Agreement  is  held to be invalid, illegal or
unenforceable  in  any  respect  under  any  applicable  law  or  rule  in  any
jurisdiction,  such  invalidity,  illegality or unenforceability will not affect
any  other  provision  or  any  other  jurisdiction,  but this Agreement will be
reformed,  construed  and  enforced  in  such  jurisdiction  as if such invalid,
illegal  or  unenforceable  provisions  had  never  been  contained  herein.

10.3     WAIVER.  If  either  party should waive any breach of any provisions of
this  Agreement,  he  or  it  shall  not  thereby  be  deemed to have waived any
preceding  or  succeeding  breach  of  the  same  or any other provision of this
Agreement.

10.4     COMPLETE  AGREEMENT.  This  Agreement,  together with Key Employee Plan
and  the  Option  Acceleration  Plan,  constitutes  the entire agreement between
Executive  and  the  Company  and  it  is  the  complete,  final,  and exclusive
embodiment  of  their  agreement  and  supersedes any prior agreement written or
otherwise  between Executive and the Company with regard to this subject matter.
It  is entered into without reliance on any promise or representation other than
those expressly contained herein, and it cannot be modified or amended except in
a  writing  signed  by  an  officer  of  the  Company.

                                        9
<PAGE>

10.5     COUNTERPARTS.  This Agreement may be executed in separate counterparts,
any  one of which need not contain signatures of more than one party, but all of
which  taken  together  will  constitute  one  and  the  same  Agreement.

10.6     HEADINGS.  The  headings  of  the  sections  hereof  are  inserted  for
convenience  only  and  shall  not  be deemed to constitute a part hereof nor to
affect  the  meaning  thereof.

10.7     SUCCESSORS  AND  ASSIGNS.  This Agreement is intended to bind and inure
to  the  benefit  of and be enforceable by Executive, the Company and the Parent
and  their  respective successors, assigns, heirs, executors and administrators,
except  that Executive may not assign any of his duties hereunder and he may not
assign  any  of his rights hereunder without the written consent of the Company,
which  shall  not  be  withheld  unreasonably.

10.8     ATTORNEY FEES.  If either party hereto brings any action to enforce his
or  its  rights  hereunder,  the  prevailing  party  in any such action shall be
entitled  to recover his or its reasonable attorneys' fees and costs incurred in
connection  with  such  action.

10.9     ARBITRATION.  To  provide  a mechanism for rapid and economical dispute
resolution,  you  and  the  Company  agree that any and all disputes, claims, or
causes  of  action, in law or equity, arising from or relating to this Agreement
(including  the  Release)  or  its  enforcement,  performance,  breach,  or
interpretation,  will  be  resolved,  to the fullest extent permitted by law, by
final,  binding,  and confidential arbitration held in San Francisco, California
and  conducted  by Judicial Arbitration & Mediation Services/Endispute ("JAMS"),
under its then-existing Rules and Procedures. Nothing in this Section 10.9 or in
this  Agreement  is intended to prevent either you or the Company from obtaining
injunctive relief in court to prevent irreparable harm pending the conclusion of
any  such  arbitration.

10.10     GOVERNING  LAW.  All  questions  concerning the construction, validity
and interpretation of this Agreement will be governed by the law of the State of
California  as  applied  to  contracts  made and to be performed entirely within
California.

                                       10
<PAGE>

     IN WITNESS WHEREOF, the parties have executed this Agreement on the day and
year  first  above  written.

PEET'S  OPERATING  COMPANY,  INC.          EXECUTIVE
By:  /s/  Patrick  J.  O'Dea               /s/  Thomas  Cawley
     -----------------------               -------------------
     Patrick  J.  O'Dea                    Thomas  Cawley
     President  and  CEO                   Chief  Financial  Officer

Date:  June  25,  2003                    Accepted  and  agreed  this
     -----------------                    25th  day  of  June,  2003
                                          --------------------------

Exhibit  A  -  Release  Agreement
Exhibit  B  -  Peet's  Coffee  &  Tea  Key  Employee  Severance  Benefit  Plan
Exhibit  C  -  Peet's Companies, Inc. Change of Control Option Acceleration Plan

                                       11
<PAGE>

                                    EXHIBIT A

                                RELEASE AGREEMENT

I  understand  that  my  position  with  Peet's  Operating  Company,  Inc.  (the
"Company") terminated effective ___________, _____ (the "Separation Date").  The
Company has agreed that if I choose to sign this Agreement, the Company will pay
me  severance benefits (minus the standard withholdings and deductions) pursuant
to  the  terms of the Key Employee Agreement entered into as of the _____ day of
________,  ____  between  myself and the Company and the Peet's Coffee & Tea Key
Employee  Severance Benefit Plan and the Peet's Coffee & Tea, Inc. (as successor
in  interest  to  Peet's  Companies,  Inc.)  Change  of  Control  Stock  Option
Acceleration  Plan.  I  understand  that  I  am  not  entitled to this severance
payment  unless  I  sign  this Agreement.  I understand that in addition to this
severance,  the  Company  will  pay me all of my accrued salary and vacation, to
which  I  am  entitled  by  law.

In  consideration for the severance payment I am receiving under this Agreement,
I  agree  not  to  use  or disclose any of the Company's proprietary information
without  written  authorization  from  the  Company,  to  immediately return all
Company  property  and  documents  (including  all  embodiments  of  proprietary
information)  and all copies thereof in my possession or control, and to release
the  Company  and  its  officers,  directors,  agents,  attorneys,  employees,
shareholders,  and  affiliates  from  any  and all claims, liabilities, demands,
causes  of  action,  attorneys'  fees, damages, or obligations of every kind and
nature, whether they are known or unknown, arising at any time prior to the date
I  sign  this  Agreement.  This general release includes, but is not limited to:
all  federal  and  state  statutory  and common law claims, claims related to my
employment or the termination of my employment or related to breach of contract,
tort, wrongful termination, discrimination, wages or benefits, or claims for any
form  of  compensation.  In  releasing  claims  unknown  to  me at present, I am
waiving all rights and benefits under Section 1542 of the California Civil Code,
and  any  law  or  legal  principle  of  similar effect in any jurisdiction:  "A
GENERAL  RELEASE  DOES  NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR
SUSPECT  TO  EXIST  IN  HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF
KNOWN  BY  HIM  MUST  HAVE  MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR."

I  acknowledge  that  I  am  knowingly and voluntarily waiving and releasing any
rights  I  may  have  under  the federal Age Discrimination in Employment Act of
1967,  as amended ("ADEA").  I also acknowledge that the consideration given for
the waiver in the above paragraph is in addition to anything of value to which I
was  already  entitled.  I have been advised by this writing, as required by the
ADEA  that:  (a) my waiver and release do not apply to any claims that may arise
after  my signing of this Agreement; (b) I should consult with an attorney prior
to  executing  this  release;  (c)  I  have twenty-one (21) days within which to
consider this release (although I may choose to voluntarily execute this release
earlier);  (d)  I have seven (7) days following the execution of this release to
revoke  the  Agreement;  and  (e) this Agreement will not be effective until the
eighth  day  after  this Agreement has been signed both by me and by the Company
("Effective  Date").

This  Agreement  constitutes the complete, final and exclusive embodiment of the
entire  agreement  between  the Company and me with regard to the subject matter
hereof.  I  am  not relying on any promise or representation by the Company that
is  not  expressly  stated  herein.  This  Agreement  may  only be modified by a
writing  signed  by  both  me  and  a  duly  authorized  officer of the Company.

                                       12
<PAGE>

I  accept  and  agree  to  the  terms  and  conditions  stated  above:

     Date          [EMPLOYEE]

     Date          PEET'S  OPERATING  COMPANY,  INC.

                                       13
<PAGE>

                                    EXHIBIT B
                               PEET'S COFFEE & TEA
                       KEY EMPLOYEE SEVERANCE BENEFIT PLAN

                                       14
<PAGE>

                                    EXHIBIT C
   PEET'S COFFEE & TEA, INC. (SUCCESSOR IN INTEREST TO PEET'S COMPANIES, INC.)
                   CHANGE OF CONTROL OPTION ACCELERATION PLAN

                                       15
<PAGE>

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