Document:

AMENDED AND RESTATED GUARANTY AGREEMENT

  Exhibit 10.10
 NO PERSON SHALL HAVE ANY RIGHT TO RELY UPON THE
PROVISIONS OF THIS GUARANTY AGREEMENT WITHOUT THE EXPRESS PRIOR WRITTEN CONSENT OF THE LENDERS AND, IN CERTAIN INSTANCES, THE GUARANTOR COMMITTEE (AS SUCH TERMS ARE DEFINED BELOW) AND UNLESS SUCH WRITTEN CONSENT IS PROVIDED BY THE LENDERS AND, WHERE
REQUIRED, THE GUARANTOR COMMITTEE, NO OTHER PERSON SHALL BE CONSIDERED A LENDER HEREUNDER AS MORE FULLY SET FORTH IN SECTION 15 BELOW.
 AMENDED AND
RESTATED GUARANTY AGREEMENT
 THIS AMENDED AND RESTATED GUARANTY AGREEMENT (“Guaranty”) made and entered into as of the 31st day of January,
1993 with an effective date of July 15, 1993, by EACH OF THE PARTIES SET FORTH ON EXHIBIT A ATTACHED HERETO AND INCORPORATED HEREIN BY REFERENCE, each a corporation organized and existing under the laws
of the State shown opposite its name (each, a “Guarantor” and, collectively, the “Guarantors”) in favor of TRUST COMPANY BANK, a Georgia banking corporation (“TCB”), Teachers Insurance and Annuity Association of America
(the “Purchaser”), so long as it shall hold any of the Notes referred to below, all other Registered Noteholders (as this and other capitalized terms used herein without definition are defined in Section 1 below) and the other Lenders (as
defined herein);
 WHEREAS, Southeastern Container, Inc., a North Carolina corporation (“Southeastern”), has entered into a Loan Agreement, dated as
of August 30, 1990, with TCB (the “Initial Loan Agreement”), providing for certain loans from TCB to Southeastern;
 WHEREAS, Southeastern has also
entered into a Note Purchase Agreement, dated as of August 30, 1990, with Purchaser (the “Note Agreement”) pursuant to which Southeastern issued and sold to Purchaser $25,000,000 in aggregate principal amount of Southeastern’s 10.15%
Senior Secured Notes due August 1, 2000 (together with all Notes issued in substitution or exchange therefor in accordance with the terms of the Note Agreement, the “Notes”), the entire principal amount of which remains outstanding on the
date hereof;
 WHEREAS, as a condition to TCB’s agreement to enter into the Initial Loan Agreement, Southeastern’s obligations pursuant to the Initial
Loan Agreement were guaranteed in part by that certain Guaranty Agreement dated as of August 30, 1990 from the Guarantors in favor of TCB (the “Initial TCB Guaranty”) which Initial TCB Guaranty contained certain restrictions on the ability
of Southeastern and TCB to amend and modify the Initial Loan Agreement;
 WHEREAS, as a condition to Purchaser’s agreement to enter into the Note
Agreement, Southeastern’s obligations pursuant to the Note Agreement were guaranteed in part by that certain Guaranty Agreement, dated as of August 30, 1990, from the
 
 

  Guarantors in favor of Purchaser and the Registered Holders (the “Initial Purchaser Guaranty” and, together with the Initial TCB Guaranty, the
“Initial Guaranties”), which Initial Purchaser Guaranty contained certain restrictions on the ability of Southeastern and the Registered Holders to amend and modify the Note Agreement;
 WHEREAS, Southeastern anticipates that it may become necessary in the future to amend the Initial Loan Agreement or the Note Agreement or from time to time to enter into other loan agreements
(together with the Initial Loan Agreement and the Note Agreement and solely to the extent that Lenders have consented to such loan agreements in writing in accordance with the terms hereof, the “Loan Agreements”) relating to extensions of
credit being made in connection with a variety of transactions, including without limitation, revolving credits, committed or uncommitted lines of credit, term loans, letter of credit facilities, swap agreements, receivables purchase agreements,
note purchase agreements, bond indentures and repurchase agreements;
 WHEREAS, as of the date hereof, certain of the Guarantors, collectively, are the owners
of 81.25% of the issued and outstanding common stock of Southeastern, certain of the Guarantors are participating patrons of Southeastern, and extensions of credit to Southeastern inure to the benefit of the Guarantors;
 WHEREAS, it is anticipated that other Lenders will be willing to make extensions of credit to Southeastern pursuant to other Loan Agreements only if, among other things, the
Guarantors make and deliver guaranties similar to the Initial Guaranties in favor of such Lenders on behalf of Southeastern;
 WHEREAS, in order to consolidate
the Initial Guaranties into one agreement and to incorporate therein similar guaranties for the benefit of additional future lenders, and to allow for the amendment and modifications of the Initial Loan Agreement, the Note Agreement or any future
Loan Agreement which has been consented to by (i) the existing Lenders, and, (ii) where required, the Guarantor Committee (as defined below) all as provided in Section 15, the Guarantors desire to amend and restate the Initial Guaranties as provided
herein;
 WHEREAS, the Guarantors are willing to enter into this Guaranty in order to induce other Lenders to make extensions of credit to Southeastern under
other Loan Agreements;
 WHEREAS, as evidenced by the Acknowledgment and Consent of each of Purchaser and TCB attached hereto, Purchaser and TCB have agreed to
amend and restate their respective Initial Guaranties as provided in this Guaranty;
 
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  NOW, THEREFORE, in consideration of the foregoing premises, the sum of $10.00, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Guarantors hereby represent, warrant and agree as follows:
 1.        As used herein, the following terms shall have the following meanings:
 “Affiliated Group” shall mean an affiliated group of Guarantors as set forth on Exhibit A attached hereto.
 “Guarantor Committee” shall mean a committee composed of four or more members (“Members”) as provided herein,
each of which shall be a Guarantor, the membership of which shall be composed as follows:
 (i)        two Members shall be Guarantors or members of Affiliated Groups, as the case may be, who have the two largest Individual Base Amounts, with such Member, in the case of an
Affiliated Group, being selected by the members of such Affiliated Group; provided, however, in the event that due to equal Individual Base Amounts, more
than two Guarantors or Affiliated Groups are eligible to become a Member, each such Guarantor shall be deemed to be a Member; and
 (ii)       two Members shall be appointed and removed by the Chairman of the Board of Southeastern from time to time at his or her sole discretion;
 provided, however, that any action of the Guarantor Committee must be unanimously approved by all Members.
 “Guaranty Percentage” at any time shall mean, with respect to each Guarantor, or Affiliated Group, as the case may be, the percentage obtained by dividing such Guarantor’s or
Affiliated Group’s, as the case may be, Individual Base Amount (exclusive of any costs of collection thereof) by the sum at such time of all of the Individual Base Amounts.
 “Individual Base Amount” shall mean, with respect to each Guarantor or Affiliated Group, as the case may be, the principal amount set forth opposite the name of
such Guarantor, or Affiliated Group, as the case may be, on Exhibit A attached hereto, as such Exhibit may be amended, supplemented or replaced from time to time as hereinafter provided, as such
principal amount shall be reduced from time to time by any payment made hereunder by such Guarantor or Affiliated Group in respect of the principal component of Liabilities.
 “Lenders” shall mean (i) TCB, so long as Southeastern shall be obligated to TCB pursuant to the Initial TCB Loan Agreement or any other loan agreement, (ii)
Purchaser, so long as Purchaser
 
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  shall hold any Notes, (iii) all other Registered Noteholders holding outstanding Notes, and (iv) each other lender which is party to a Loan Agreement
consented to by the existing Lenders and which is entitled to rely upon this Guaranty and be considered a “Lender” hereunder, all in accordance with the provisions of Section 15 of this Guaranty.
 “Liabilities” shall mean all of Southeastern’s obligations, liabilities and indebtedness to Lenders of any and every kind and nature,
whether heretofore, now or hereafter owing, arising, due or payable (including obligations of performance) arising or existing under the Loan Agreements, and any notes or other loan documents executed in connection therewith (the “Loan
Documents”), including all accrued interest, costs of collection against Southeastern, indemnities and other fees and expenses under any Loan Agreement (excluding, for purposes of this definition, expenses payable pursuant to Section 18
hereof).
 “Person” shall mean any individual, partnership, firm, corporation, association, joint
venture, trust or other entity, or any government or political subdivision or agency, department or instrumentality thereof.
 “Preapproved Amendment” shall mean (i) any amendment or modification to a Preapproved Loan Agreement where following such amendment or modification, such Loan Agreement would still constitute a Preapproved Loan
Agreement pursuant to the terms of this Guaranty, and (ii) any non-material amendment or modification to any Loan Agreement.
 “Preapproved Loan Agreement” shall mean (i) the Initial Loan Agreement, (ii) the Note Purchase Agreement, and (iii) any other Loan Agreement where either TCB or Purchaser is the agent or sole Lender which meets
each of the following conditions, in each case, as measured against the Initial Loan Agreement or the Note Purchase Agreement, respectively (in each case, the “Original Agreement”):
 (x)      provides for interest rate options (including applicable margins) (the “New Interest Rate Options”) not in
excess of 3% of the interest rate options provided in the Original Agreement (the “Original Interest Rate Options”); provided, however, that if such New Interest Rate Options are based upon an interest rate other than that used to
calculate the Original Interest Rate Options, such comparison shall be based upon the average rate of such New Interest Rate Option and the Original Interest Rate Option over the three-month period immediately preceding the execution of such Loan
Agreement;
 (y)      provides for optional prepayments on terms not substantially more
onerous than the Original Agreement; and
 
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  (z)       provides for covenants and events of default that
are not substantially more onerous than the Original Agreement.
 “Registered Noteholder” shall mean,
individually, any of Purchaser (so long as Purchaser shall hold any Notes) and all other Persons who are registered holders of Notes as indicated in the Note register maintained by Southeastern pursuant to Section 10.1 of the Note Agreement; and
“Registered Noteholders” shall mean, collectively, Purchaser (so long as Purchaser shall hold any notes) and all other Persons who are registered holders of Notes as indicated in the Note register maintained by Southeastern pursuant to
Section 10.1 of the Note Agreement.
 2.        Each of the Guarantors, or each
Affiliated Group, as the case may be, unconditionally guarantees the due and punctual payment in full of all Liabilities; provided that, with respect to any claim for Liabilities made under this Guaranty,
 (a)       no Guarantor’s or Affiliated Group’s obligation under this Guaranty shall exceed the
sum of
 (i)       such Guarantor’s or Affiliated
Group’s Guaranty Percentage of the amount of such Liabilities plus
 (ii)      if such Guarantor or Affiliated Group does not satisfy its obligation hereunder to pay its Guaranty Percentage of such Liabilities when due, all interest, fees and costs of collection
accruing in respect of such Guaranty Percentage after the due date thereof, and
 (b)       in no event shall the liability of any Guarantor or Affiliated Group under this Guaranty in respect of the principal component of such Liabilities exceed its Individual Base
Amount.
 Guarantors comprising an Affiliated Group shall be jointly and severally liable for the Individual Base Amount of such Affiliated Group. The obligations of each Guarantor
and the joint and several obligations of each Affiliated Group shall be primary, absolute, independent, irrevocable and unconditional. No payment by any Guarantor under this Guaranty to any Lender shall constitute a defense to any other
Guarantor’s obligations hereunder to such Lender except to the extent that such Lender has been indefeasibly paid in full.
 3.        Guaranty Absolute.           Each Guarantor, subject
to the limitations set forth in Section 2, guarantees that the Liabilities will be paid strictly in accordance with the terms of the applicable Loan Agreement, regardless of any law, regulation or order now or hereafter in effect in any jurisdiction
affecting any of such terms or the rights of any Lender or Southeastern with
 
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  respect thereto. The liability of each Guarantor under this Guaranty shall be absolute and unconditional irrespective of:
 (i)         any lack of validity or enforceability of any Loan Agreement or any
other agreement or instrument relating thereto (whether executed by Southeastern, such Guarantor or any other party) or avoidance or subordination of all or any of the Liabilities;
 (ii)       any change in the time, manner or place of payment of, or in any other term of, or any increase in the amount of,
all or any of the Liabilities, or any other amendment or waiver of or any consent to departure from any Loan Agreement or any other agreement or instrument relating thereto (whether executed by Southeastern, such Guarantor or any other
party);
 (iii)     any exchange, release or non-perfection of any lien on
any collateral, or any release or amendment or waiver of or consent to departure from any other guaranty, for all or any of the Liabilities;
 (iv)      the absence of any attempt to collect all or any of the Liabilities from Southeastern or any other action to enforce the same or the election of any remedy by a
Lender;
 (v)       the waiver, consent, extension, forbearance
or granting of any indulgence by a Lender with respect to any provision of any Loan Agreement or any other agreement or instrument relating thereto (whether executed by Southeastern, such Guarantor or any other party);
 (vi)      the election by a Lender in any proceeding instituted under Chapter 11 of Title
11 of the Bankruptcy Code of the application of Section 1111(b)(2) of the Bankruptcy Code;
 (vii)    the disallowance under Section 502 of the Bankruptcy Code of all or any portion of the claims of a Lender for repayment of the Liabilities; or
 (viii)   any other circumstance which might otherwise constitute a legal or equitable discharge or defense of Southeastern,
such Guarantor or any other guarantor (other than indefeasible payment in full of the Liabilities).
 4.        Each of the Guarantors further agrees that this Guaranty will remain in full force and effect as to such Guarantor notwithstanding any change in such Guarantor’s or any
other guarantor’s ownership of the stock of Southeastern.
 
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  5.        Each of the Guarantors hereby waives
presentation to, demand of, payment from and protest to Southeastern or the Guarantors, whether in their capacities as guarantors of the Liabilities or otherwise, and also waive notice of protest for nonpayment. Furthermore, each Guarantor hereby
waives (i) promptness, diligence, notice of acceptance and any and all other notices with respect to any of the Liabilities and this Guaranty, (ii) any requirement that a Lender protect, secure, perfect or insure any security interest in or other
lien on any property subject thereto or exhaust any right or take any action against Southeastern or any other Person or any collateral, (iii) filing of claims with a court in the event of receivership or bankruptcy of Southeastern, (iv) protest or
notice with respect to nonpayment of any or all of the Liabilities, (v) the benefit of any statutes of limitation, and (vi) all demands whatsoever (and any requirement that the same be made on Southeastern as a condition precedent to such
Guarantor’s obligations hereunder); and covenants that this Guaranty will not be discharged, except by indefeasible payment in full of the Liabilities.
 If, in the exercise of any of its rights and remedies, a Lender shall forfeit any of its rights or remedies, including its right to enter a deficiency judgment against Southeastern or any other person, whether because of any applicable laws
pertaining to “election of remedies” or the like, each Guarantor hereby consents to such action by such Lender and waives any claim based upon such action, even if such action by such Lender shall result in a full or partial loss of any
rights of subrogation, contribution or reimbursement which such Guarantor might otherwise have had but for such action by such Lender. In the event a Lender shall bid at any foreclosure or trustee’s sale or at any private sale permitted by law
or under any Loan Agreement, such Lender may bid all or less than the amount of the Liabilities existing under the applicable Loan Agreement and the amount of such bid need not be paid by such Lender but shall be credited against such Liabilities.
The amount of the successful bid at any such sale, whether such Lender or any other person is the successful bidder, shall be conclusively deemed to be the fair market value.
 Each Guarantor consents and agrees that a Lender shall be under no obligation to marshall any assets in favor of such Guarantor or any Affiliated Group of which it is a member against or in payment of any or all of the
Liabilities.
 6.        The Guarantors further agree that this Guaranty
constitutes a guaranty of payment and not of collection and they waive any right to require that any resort be had by any Lender to (i) any security held by any Lender for payment of all or any part of the Liabilities, (ii) any other monetary
obligations to any Lender of any of Southeastern, any Additional Guarantor (as defined in Section 10) or the Guarantors, in their capacities as guarantors of the Liabilities or otherwise, or (iii) any Lender’s rights against any other guarantor
of the Liabilities.
 
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  7.        The obligations of the Guarantors hereunder
shall not be subject to any reduction, limitation, impairment or termination for any reason, including, without limitation, any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to any defense (other than
payment) or setoff, counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality or unenforceability of the provisions of this Guaranty, the Loan Agreements, or any ancillary documents executed in connection therewith
or the Liabilities. Without limiting the generality of the foregoing, the obligations of the Guarantors hereunder shall not be discharged or impaired or otherwise affected by the failure of any Lender to assert any claim or demand or to enforce any
remedy hereunder or under any Loan Agreement or any of the other Loan Documents, by any default, failure or delay, willful or otherwise, in the performance of the terms and conditions of any Loan Agreement or any of the other Loan Documents, or by
any other act or thing or omission or delay to do any other act or thing which may or might in any manner or to any extent vary the risk of the Guarantors, or which would otherwise operate as a discharge of the Guarantors, or any of them, as a
matter of law (other than payment).
 8.        The Guarantors further agree
that this Guaranty shall continue to be effective or be reinstated, as the case may be, if at any time payment, or any part thereof, on the Liabilities is required by law or by a court having competent jurisdiction to be rescinded or must otherwise
be restored by any Lender upon the bankruptcy or reorganization of any of Southeastern or the Guarantors, or otherwise.
 9.        (a) Upon payment by any of the Guarantors of any sum to Lenders hereunder, all rights of such Guarantors against any of Southeastern, any Additional Guarantor or the other
Guarantors arising as a result thereof by way of right of subrogation, contribution or otherwise shall in all respects be subordinate and junior in right of payment to the prior indefeasible payment in full of all Liabilities.
            (b) Upon the occurrence of any payment default under any Loan Agreement
that is not cured, or, with the consent of all Guarantors, waived within one hundred twenty (120) days of the occurrence of such default (the “Default Period”), the applicable Lender shall accelerate the Liabilities thereunder in
accordance with the remedies provided for in such Loan Agreement. In the event such Lender fails to accelerate such Liabilities within the Default Period, the Guarantors shall have no liability for any interest accruing on such Liabilities for the
period extending from the expiration of the Default Period until the date of acceleration of such Liabilities, if any. In the event such Lender accelerates such Liabilities within the Default Period, the Guarantors, subject to the provisions of
Section 2 hereof, shall continue to be liable for all interest which has and does accrue on such Liabilities as provided in such Loan Agreement.
In
 
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  addition, upon the occurrence of a default under any Loan Agreement and acceleration (other than an acceleration due to a bankruptcy event) of the
Liabilities thereunder in accordance with the remedies provided for in such Loan Agreement (an “Acceleration Event”), either within or outside of the Default Period, such affected Lender agrees to make written demand upon all Guarantors
for payment of such Liabilities within ten (10) business days of such Acceleration Event. Subject to the provisions of Section 8 hereof, upon payment by a Guarantor of its Individual Base Amount and any and all interest, fees and costs of collection
accruing with respect thereto as provided in Section 2 hereof, such Guarantor shall be fully discharged from its obligations hereunder.
 10.      (a) The Guarantors acknowledge and agree that, with or without notice to the Guarantors, the Lenders shall have the right, in their sole discretion, to accept (i) the guaranties of
guarantors of the Liabilities other than those listed on Exhibit A hereto (each, an “Additional Guarantor”) or (ii) an increase in the existing Individual Base Amount of a Guarantor or an
Affiliated Group listed on Exhibit A hereto (each, an “Increasing Guarantor” or an “Increasing Affiliated Group,” as the case may be), upon written application in accordance with the
following provisions of this paragraph. The addition of an Additional Guarantor or the increase of the Individual Base Amount of a Guarantor or Affiliated Group listed on Exhibit A hereto shall be
evidenced by the execution and delivery by such Additional Guarantor or Guarantor of an instrument in the form of Exhibit C hereto. Upon such execution and delivery, any such Additional Guarantor shall
become a Guarantor hereunder with the same force and effect as if originally named a Guarantor herein, and upon execution and delivery of such instrument by a Guarantor or Affiliated Group of Guarantors to evidence an increase in the Individual Base
Amount of such Guarantor or Affiliated Group of Guarantors, such increase shall be effective and shall be deemed to be an automatic amendment of Exhibit A hereto.
            (b) The Guarantors further acknowledge and agree that, without notice to
and the prior written consent of the Guarantors, the Lenders shall have the right to release, in whole or in part, a Guarantor (each, a “Released Guarantor”) from its obligations under this Guaranty and that release of such Released
Guarantor shall in no way release the other Guarantors from any of their obligations hereunder; provided, however, the Lenders shall have no right to
release any Guarantor hereunder without the unanimous consent of the Board of Directors of Southeastern.
 11.      (a) Each Guarantor will maintain its corporate existence and will not liquidate, wind-up or dissolve. No Guarantor will merge or consolidate with any other person, or sell or transfer
all or a substantial portion of its assets, unless the continuing or surviving corporation or purchaser of such assets
 
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  agrees in writing to fully assume such Guarantor’s obligations under this Guaranty.
 (b)       Notwithstanding the provisions of subsection (a) above, a Guarantor that is a member of an Affiliated Group, as reflected on
Exhibit A (a “Permitted Transferor”), may sell or transfer, or cause the sale or transfer of, all or a substantial portion of the assets or stock of one or more of the members of its
Affiliated Group, as reflected on Exhibit A, to any Person (a “Permitted Transferee”) (such a transaction being referred to as a “Permitted Transfer”) and, in lieu of the assumption
by the Permitted Transferee of the joint and several obligation of the member of the Affiliated Group being sold or transferred, the following adjustments shall be made:
 (i)        The Individual Base Amount of the Affiliated Group of which the Permitted Transferor is a member will be
reduced by a percentage amount equal to the product of (1) one hundred, multiplied by, (2) a fraction, the numerator of which shall be equal to the aggregate dollar amount of PET Bottle purchases that have been made by the member of the Affiliated
Group being sold or transferred during the prior twelve (12) months, and the denominator of which shall be equal to the aggregate dollar amount of the PET Bottle purchases that have been made by all Guarantors during the prior twelve (12) months
(the “Transfer Percentage”); provided, however, that in no event shall the Individual Base Amount of the Permitted Transferor’s Affiliated
Group be less than 75% of its Individual Base Amount in effect on the date of execution and delivery of this Guaranty; and
 (ii)       The Individual Base Amount to be assumed by the Permitted Transferee shall equal the Individual Base Amount of the Permitted Transferor’s Affiliated
Group multiplied by the Transfer Percentage (which, in the case of a Permitted Transferee that is a Guarantor, shall be in addition to the Individual Base Amount of such Guarantor then in effect).
 12.      Nothing contained in this Guaranty shall be deemed to modify or act as a waiver of any of the terms and provisions of
any Loan Agreements, including, without limitation, Sections 5.3(A) and 5.3(C) of the Initial Loan Agreement and Sections 6.1 and 6.2 of the Note Agreement.
 13.      Each Guarantor covenants and agrees with respect to itself only that until the Liabilities are fully paid, performed and discharged and this Guaranty is discharged
such Guarantor will provide to each Lender the following:
 (a)       Annual and Quarterly Statements. (i) Each Guarantor will provide to each Lender within one hundred twenty (120) days after the close of each fiscal year (A) a detailed financial report of such Guarantor or

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  Affiliated Group, as the case may be, based on Generally Accepted Accounting Principles applied on a consistent basis and containing an
unqualified opinion or opinion otherwise acceptable to Lenders of independent certified public accountants of nationally recognized standing or other independent certified public accountants acceptable to Lenders, or (B) such other financial
information as shall be acceptable to Lenders; and (ii) each Guarantor or Affiliated Group, as the case may be, whose Individual Base Amount is $750,000.00 or greater will provide to each Lender within sixty (60) days after the close of each fiscal
quarter (A) a financial report including a balance sheet, cash flow statement and income statement, or (B) such other financial information as shall be acceptable to Lenders.
 (b)       Other Reports. Each of the Guarantors agrees to promptly furnish to each Lender at any
time such financial information (in the case of Guarantors whose stock is publicly traded, publicly available financial information) as any Lender may reasonably request from time to time.
 14.      Each of the Guarantors further represents to each Lender that it has knowledge of Southeastern’s financial condition and affairs and
represents and agrees that it will keep itself so informed while this Guaranty is in force. The Guarantors agree that no Lender shall have any obligation to investigate the financial condition or affairs of Southeastern for the benefit of the
Guarantors or to advise the Guarantors of any fact respecting, or any change in, the financial condition or affairs of Southeastern which might come to the attention of such Lender, at any time, whether or not such Lender knows or believes or has
reason to know or believe that any such fact or change is unknown to the Guarantors, or any of them, or might (or does) materially increase the risk of the Guarantors as guarantor or might (or would) affect the willingness of the Guarantors, or any
of them, to continue as guarantors with respect to the Liabilities.
 15.      (a) NO
PERSON SHALL HAVE ANY RIGHT TO RELY UPON THE PROVISIONS OF THIS GUARANTY WITHOUT THE EXPRESS PRIOR WRITTEN CONSENT OF THE LENDERS AND UNLESS SUCH WRITTEN CONSENT IS PROVIDED BY THE LENDERS, NO OTHER PERSON SHALL BE CONSIDERED A LENDER HEREUNDER. ANY
SUCH WRITTEN CONSENT PROVIDED BY THE LENDERS SHALL BE LIMITED TO THE PRINCIPAL AMOUNT AND OTHER MATERIAL TERMS OF THE PROSPECTIVE LOAN AGREEMENT AS CERTIFIED IN WRITING TO THE LENDERS AT THE TIME SUCH CONSENT IS GIVEN, OR IN THE CASE OF THE INITIAL
LOAN AGREEMENT AND THE NOTE PURCHASE AGREEMENT, AS IN EFFECT ON THE DATE OF THE EXECUTION OF THIS GUARANTY AS SPECIFIED IN THE ACKNOWLEDGMENT AND CONSENT OF PURCHASER AND TCB ATTACHED HERETO, AND THIS GUARANTY SHALL NOT BE EFFECTIVE WITH RESPECT TO
ANY INCREASE IN THE AMOUNT EVIDENCED BY SUCH LOAN AGREEMENT OR LOAN AGREEMENT MODIFIED BY ANY OTHER MATERIAL AMENDMENT OR MODIFICATION
 
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  OF SUCH LOAN AGREEMENT ENTERED INTO WITHOUT THE EXPRESS PRIOR WRITTEN CONSENT OF THE LENDERS.
 (b)       IN ADDITION TO THE CONSENT REQUIRED BY SUBSECTION (a) ABOVE, NO PERSON SHALL HAVE ANY RIGHT TO RELY UPON THE PROVISIONS OF THIS
GUARANTY WITH RESPECT TO ANY OBLIGATIONS OF SOUTHEASTERN CREATED UNDER ANY LOAN AGREEMENT OTHER THAN A PREAPPROVED LOAN AGREEMENT OR WITH RESPECT TO ANY LOAN AGREEMENT AS AMENDED OR MODIFIED BY ANY AMENDMENT OTHER THAN A PREAPPROVED AMENDMENT UNLESS
SUCH PERSON SHALL HAVE OBTAINED THE EXPRESS PRIOR WRITTEN CONSENT OF THE GUARANTOR COMMITTEE TO SUCH LOAN AGREEMENT OR AMENDMENT OR MODIFICATION. EACH OF THE GUARANTORS HEREBY AGREES TO BE BOUND BY ANY SUCH WRITTEN CONSENT OF THE GUARANTOR
COMMITTEE.
 (c)       Each reference herein to any Lender shall be deemed to include
its successors and assigns, in whose favor the provisions of this Guaranty shall also inure. Without limiting the generality of the foregoing sentence, a Lender may assign or otherwise transfer any Liability owing to it to any other person or
entity, and such other person or entity shall thereupon become vested with all the rights in respect thereof granted to such Lender herein or otherwise with respect to the Liabilities so transferred or assigned, subject, however, to the compliance
with the provisions of the applicable Loan Agreement relating to such assignments. Each reference herein to the Guarantors shall be deemed to include their successors and assigns, all of whom shall be bound by the provisions of this Guaranty. The
provisions of this Guaranty are for the benefit of and enforceable by any Lender who is a party to a Loan Agreement under which any Liabilities remain outstanding as of the date such Lender seeks to enforce this Guaranty. Each Guarantor agrees that
this Guaranty is intended to secure any and all Loan Agreements executed by Southeastern which specifically reference this Guaranty, and which are approved by the Lenders and, where required, the Guarantor Committee, as provided herein.

16.      Any notice shall be conclusively deemed to have been received by a party hereto and be
effective on the day on which delivered to such party at the address set forth below or such other address as such party shall specify to the other parties in writing, or if sent prepaid by certified or registered mail on the third day after the day
on which mailed, addressed to such party at such address:
 (a)       if to the
Guarantors:
 To the address set out opposite the Guarantor’s name on Exhibit B hereto.
 
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  with a copy to:
 Southeastern Container,
Inc
1250 Sand Hill Road
Enka, North Carolina 28728
 Attention: Manager of Finance
 (b)       if to TCB:
 Trust Company Bank
P.O. Box 4418
Atlanta, Georgia 30302
 Attention: Ms. Susan
Stall
 (c)       if to Purchaser:
 Teachers Insurance and Annuity
Association of America
730 Third Avenue
New York, New York 10017
 Attention: Securities Division
 (d)       if to any other Registered Noteholder, at the address of such holder as it appears on the Note register maintained by Southeastern.
 (e)       if to any other Lender(s):
 at such addresses as may be provided in the relevant Loan Agreement.
 This section shall not be construed in any way to affect or impair any waiver
of notice or demand herein provided or to require giving of notice or demand to or upon the Guarantors in any situation or for any reason.
 17.      No delay on the part of any Lender in exercising any right hereunder or failure to exercise the same shall operate as a waiver of such right; no notice to or demand on the Guarantors
shall be deemed to be a waiver of the obligations of the Guarantors or of the right of any Lender to take further action without notice or demand as provided herein, nor in any event shall any modification or waiver of the provisions of this
Guaranty be effective unless in writing and signed by the Guarantors and each Lender, nor shall any such waiver be applicable except in the specific instance for which given. All rights of Lenders hereunder or otherwise arising under any documents
executed in connection with or as security for the Liabilities are separate and cumulative and may be pursued separately, successively or concurrently, or not pursued, without
 
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  affecting or limiting any other right of Lenders and without affecting or impairing the liability of the Guarantors.
 18.      Each Guarantor, separately and not jointly, agrees to reimburse each Lender for all expenses (including reasonable
attorneys’ fees) incurred by such Lender in connection with the enforcement of this Guaranty against such Guarantor.
 19.      THIS GUARANTY IS, AND SHALL BE DEEMED TO BE, A CONTRACT ENTERED INTO, UNDER AND PURSUANT TO THE LAWS OF THE STATE GOVERNING THE RELEVANT LOAN AGREEMENT GUARANTEED HEREBY AND SHALL BE IN
ALL RESPECTS GOVERNED, CONSTRUED, APPLIED AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS (AS OPPOSED TO THE CONFLICTS OF LAW PROVISIONS) OF SUCH STATE; AND NO DEFENSE GIVEN OR ALLOWED BY THE LAWS OF ANY OTHER STATE SHALL BE INTERPOSED IN ANY
ACTION HEREON UNLESS SUCH DEFENSE IS ALSO GIVEN OR ALLOWED BY THE LAWS OF SUCH STATE.
 20.      In case any one or more of the provisions contained in this Guaranty should be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be
affected or impaired thereby.
 21.      This Guaranty may be amended, or compliance by a
Guarantor with any provision hereof may be waived, only in writing and only with the consent of all Lenders and all Guarantors.
 22.      This Guaranty may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which, taken together, shall constitute one and the same
instrument.
 23.      AS PART OF THE CONSIDERATION FOR THE FINANCIAL ACCOMMODATIONS
EXTENDED TO SOUTHEASTERN BY LENDERS, THE GUARANTORS CONSENT TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED WITHIN THE STATES OF GEORGIA OR NEW YORK OR ANY OTHER STATE THE LAWS OF WHICH GOVERN THIS AGREEMENT IN ACCORDANCE WITH SECTION 19
HEREOF, WAIVE TRIAL BY JURY, TO THE EXTENT PERMITTED BY LAW, AND FURTHER WAIVE ANY OBJECTION TO JURISDICTION AND VENUE OF ANY ACTION INSTITUTED HEREUNDER, AND FURTHER AGREE NOT TO ASSERT ANY DEFENSE BASED ON LACK OF JURISDICTION OR VENUE.

24.      Subject to the provisions of Section 8 hereof, this Guaranty shall terminate upon the
indefeasible payment in full of all Liabilities and the termination of any further commitment to lend pursuant to all Loan Agreements. Upon termination, each Lender shall, upon the request of Southeastern return the original or a copy of this
Guaranty to Southeastern marked “cancelled.”
 
-14-

  25.      Each Guarantor represents and warrants to each Lender as
follows:
 (a)       Such Guarantor is a corporation duly organized, validly existing
and in good standing under the laws of its respective State of incorporation and has the right and corporate power and is duly authorized and empowered to enter into, execute, deliver and perform this Guaranty.
 (b)       The execution, delivery and performance by such Guarantor of this Guaranty will not violate, be
in conflict with, result in a breach of or constitute (with giving of notice or lapse of time or both) a default under any provision contained in such Guarantor’s Articles of Incorporation or Bylaws, any applicable law, the terms of any
instrument, document or agreement to which such Guarantor is a party, or by which such Guarantor or any of the property of such Guarantor is bound, or result in the creation or imposition of any lien upon any of the property or assets of such
Guarantor.
 (c)       This Guaranty constitutes a valid and legally binding
obligation of such Guarantor, enforceable in accordance with its terms, and no consent or approval or authorization of any governmental authority, bureau or agency is required in connection with the execution, delivery or performance of this
Guaranty by such Guarantor, or the validity and enforceability of this Guaranty as to such Guarantor.
 (d)       There is no pending or threatened action or proceeding affecting such Guarantor before any court, governmental agency or arbitrator which would materially adversely affect the
ability of such Guarantor to perform its obligations under this Guaranty.
 
-15-

  IN WITNESS WHEREOF, each Guarantor has caused this Guaranty to be duly executed under seal as of the date first above written.

 
  

	  
 	  
 	  
 	 COCA-COLA ENTERPRISES INC.
 
	  
 	  
 	  
 	  
 	 By: 
 	 
 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title: 
 	 Senior Vice Precident & CFO
 

   

	  
 	  
 	  
 	 [Corporate Seal]
 
	  
 	  
 	  
 	  
 	 Attest:
 	 
 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title: 
 	 Assistant Secretary
 

   

	  
 	  
 	  
 	 COCA-COLA BOTTLING
 COMPANY OF MEMPHIS, TENN.
 
	  
 	  
 	  
 	  
 	 By:
 	 
 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title:
 	 Senior Vice Precident & CFO
 

   

	  
 	  
 	  
 	 [Corporate Seal]
 
	  
 	  
 	  
 	  
 	 Attest:
 	 
 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title: 
 	 Secretary
 

   

	  
 	  
 	  
 	 FLORIDA COCA-COLA BOTTLING
 COMPANY
 
	  
 	  
 	  
 	  
 	 By:
 	 
 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title:
 	 Senior Vice Precident & CFO
 

   

	  
 	  
 	  
 	 [Corporate Seal]
 
	  
 	  
 	  
 	  
 	 Attest:
 	 
 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title: 
 	 Secretary
 

  
 
 
 -16-

   

	  
 	  
 	  
 	 DELAWARE COCA-COLA BOTTLING
 COMPANY, INC.
 
	  
 	  
 	  
 	  
 	 By:
 	 
 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title:
 	 Senior Vice Precident & CFO
 

   

	  
 	  
 	  
 	 [Corporate Seal]
 
	  
 	  
 	  
 	  
 	 Attest:
 	 
 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title: 
 	 Secretary
 

   

	  
 	  
 	  
 	 JOHNSTON COCA-COLA
 BOTTLING GROUP, INC.
 
	  
 	  
 	  
 	  
 	 By:
 	 
 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title:
 	 Senior Vice Precident & CFO
 

   

	  
 	  
 	  
 	 [Corporate Seal]
 
	  
 	  
 	  
 	  
 	 Attest:
 	 
 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title: 
 	 Secretary
 

   

	  
 	  
 	  
 	 COCA-COLA BOTTLING CO. CONSOLIDATED
 
	  
 	  
 	  
 	  
 	 By:
 	 
 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title:
 	 VICE PRESIDENT AND C.F.O.
 

   

	  
 	  
 	  
 	 [Corporate Seal]
 
	  
 	  
 	  
 	  
 	 Attest:
 	 
 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title: 
 	 V P Purchasing
 

  
 -17-

   

	  
 	  
 	  
 	 COCA-COLA BOTTLING COMPANY OF
 OF ROANOKE, INC.
 
	  
 	  
 	  
 	  
 	 By:
 	 
 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title:
 	 V P Purchasing
 

   

	  
 	  
 	  
 	 [Corporate Seal]
 
 
 
	  
 	  
 	  
 	  
 	 Attest:
 	 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title: 
 	 V P Purchasing
 

   

	  
 	  
 	  
 	 COCA-COLA BOTTLING COMPANY OR
 NASHVILLE, INC.
 
	  
 	  
 	  
 	  
 	 By:
 	 
 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title:
 	 Vice President / Treasurer
 

   

	  
 	  
 	  
 	 [Corporate Seal]
 
 
 
	  
 	  
 	  
 	  
 	 Attest:
 	 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title: 
 	 V P Purchasing
 

   

	  
 	  
 	  
 	 COCA-COLA BOTTLING COMPANY
 OF MOBILE, INC.
 
	  
 	  
 	  
 	  
 	 By:
 	 
 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title:
 	 Vice President / Treasurer
 

   

	  
 	  
 	  
 	 [Corporate Seal]
 
	  
 	  
 	  
 	  
 	 Attest:
 	 
 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title: 
 	 V P Purchasing
 

  
 -18-

   

	  
 	  
 	  
 	 SUNBELT COCA-COLA BOTTLING
 COMPANY, INC.
 
	  
 	  
 	  
 	  
 	 By:
 	 
 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title:
 	 Vice President and C.F.O.
 

  

	  
 	  
 	  
 	 [Corporate Seal]
 
 
	 	 	 	 	 	 
	  
 	  
 	  
 	  
 	 Attest:
 	 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title: 
 	 V P Purchasing
 

  

	  
 	  
 	  
 	 COCA-COLA BOTTLING COMPANY UNITED, INC.
 
 
 
	  
 	  
 	  
 	  
 	 By:
 	 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title:
 	 EX. V. P.
 

  

	  
 	  
 	  
 	 [Corporate Seal]
 
 
 
	  
 	  
 	  
 	  
 	 Attest:
 	 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title: 
 	 Secretary
 

   

	  
 	  
 	  
 	 RODDY COCA-COLA BOTTLING COMPANY
 
 
 
	  
 	  
 	  
 	  
 	 By:
 	 /s/ James P. Roddy III 
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title:
 	 President & C.O.O.
 

   

	  
 	  
 	  
 	 [Corporate Seal]
 
 
 
	  
 	  
 	  
 	  
 	 Attest:
 	 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title: 
 	 Vice President & Secretary
 

  
 -19-

    

	  
 	  
 	  
 	 EASTERN CAROLINA COCA-COLA
 BOTTLING COMPANY, INC.
 
 
 
	  
 	  
 	  
 	  
 	 By:
 	 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title:
 	 Vice President
 

   

	  
 	  
 	  
 	 [Corporate Seal]
 
 
 
	  
 	  
 	  
 	  
 	 Attest:
 	 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title: 
 	 Secretary
 

   

	  
 	  
 	  
 	 DURHAM COCA-COLA BOTTLING
 COMPANY
 
 
 
	  
 	  
 	  
 	  
 	 By:
 	 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title:
 	 President
 

   

	  
 	  
 	  
 	 [Corporate Seal]
 
 
 
	  
 	  
 	  
 	  
 	 Attest:
 	 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title: 
 	 Assistant Secretary
 

   

	  
 	  
 	  
 	 THE COASTAL COCA-COLA BOTTLING
 COMPANY, INC.
 
 
 
	  
 	  
 	  
 	  
 	 By:
 	 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title:
 	 Vice President
 

   

	  
 	  
 	  
 	 [Corporate Seal]
 
 
 
	  
 	  
 	  
 	  
 	 Attest:
 	 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title: 
 	 Secretary
 

  
 
-20-

    

	  
 	  
 	  
 	 CAMERON COCA-COLA BOTTLING CO.
 
 
 
	  
 	  
 	  
 	  
 	 By:
 	 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title:
 	 Pres.
 

   

	  
 	  
 	  
 	 [Corporate Seal]
 
 
 
	  
 	  
 	  
 	  
 	 Attest:
 	 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title: 
 	 Controller
 

   

	  
 	  
 	  
 	 CAROLINA COCA-COLA BOTTLING CO.
 
 
 
	  
 	  
 	  
 	  
 	 By:
 	 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title:
 	 Exc. Vice Pres 
 

   

	  
 	  
 	  
 	 [Corporate Seal]
 
 
 
	  
 	  
 	  
 	  
 	 Attest:
 	  
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title: 
 	  
 
	  
 	  
 	  
 	  
 	  
 	 
 

   

	  
 	  
 	  
 	 BIG SPRINGS, INC.
 
 
 
	  
 	  
 	  
 	  
 	 By:
 	 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title:
 	 President
 

   

	  
 	  
 	  
 	 [Corporate Seal]
 
 
 
	  
 	  
 	  
 	  
 	 Attest:
 	 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title: 
 	 Sr. Executive Vice President
 and Secretary - Treasurer
 

 

-21-

   

	  
 	  
 	  
 	 COCA-COLA BOTTLING WORKS OF
 TULLAHOMA, INC.
 
 
 
	  
 	  
 	  
 	  
 	 By:
 	 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title:
 	 President
 

   

	  
 	  
 	  
 	 [Corporate Seal]
 
 
 
	  
 	  
 	  
 	  
 	 Attest:
 	 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title: 
 	 V.P. and Gen. Mgr. 
 

   

	  
 	  
 	  
 	 SANFORD COCA-COLA BOTTLING CO.
 
 
 
	  
 	  
 	  
 	  
 	 By:
 	 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title:
 	 V. P. Secretary
 

   

	  
 	  
 	  
 	 [Corporate Seal]
 
 
 
	  
 	  
 	  
 	  
 	 Attest:
 	 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title: 
 	 V P Treas.
 

   

	  
 	  
 	  
 	 ORANGEBURG COCA-COLA BOTTLING CO.
 
 
 
	  
 	  
 	  
 	  
 	 By:
 	 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title:
 	 President
 

   

	  
 	  
 	  
 	 [Corporate Seal]
 
 
 
	  
 	  
 	  
 	  
 	 Attest:
 	 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title: 
 	 Vice President
 

  
 -22-

    

	  
 	  
 	  
 	 MIDDLESBORO COCA-COLA BOTTLING
 WORKS, INC.
 
 
 
	  
 	  
 	  
 	  
 	 By:
 	 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title:
 	 President
 

   

	  
 	  
 	  
 	 [Corporate Seal]
 
 
 
	  
 	  
 	  
 	  
 	 Attest:
 	 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title: 
 	 Vice President & Treasurer
 

  

	  
 	  
 	  
 	 ROCK HILL COCA-COLA BOTTLING
 CO.
 
 
 
	  
 	  
 	  
 	  
 	 By:
 	 /s/ Illegible 1-26-93 
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title:
 	 President
 

   

	  
 	  
 	  
 	 [Corporate Seal]
 
 
 
	  
 	  
 	  
 	  
 	 Attest:
 	 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title: 
 	 Assistant Secretary 1/26/93 
 

   

	  
 	  
 	  
 	 ABERDEEN COCA-COLA BOTTLING
 COMPANY, INCORPORATED
 
 
 
	  
 	  
 	  
 	  
 	 By:
 	 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title:
 	 President
 

   

	  
 	  
 	  
 	 [Corporate Seal]
 
 
 
	  
 	  
 	  
 	  
 	 Attest:
 	 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title: 
 	 Assistant Secretary
 

 
 -23-

   

	  
 	  
 	  
 	 COCA-COLA BOTTLING COMPANY
 OF NORTHERN NEW ENGLAND, INC.
 
 
 
	  
 	  
 	  
 	  
 	 By:
 	 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title:
 	 Vice President
 

   

	  
 	  
 	  
 	 [Corporate Seal]
 
 
 
	  
 	  
 	  
 	  
 	 Attest:
 	 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title: 
 	 Vice President
 

  
 
 -24-

  EXHIBIT A
   

	 NAME
 	  
 	       STATE OF 
 INCORPORATION
 	  
 	 INDIVIDUAL BASE
         AMOUNT
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 
	 AFFILIATED GROUP:
 	  
 	  
 	  
 	 $16,961,000
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 
	 1.
 	 COCA-COLA BOTTLING CO. CONSOLIDATED
 	  
 	 DELAWARE
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 
	 2.
 	 COCA-COLA BOTTLING 
 COMPANY OF ROANOKE,
 INC.
 	  
 	 DELAWARE
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 
	 3.
 	 COCA-COLA BOTTLING
 COMPANY OF NASHVILLE, INC.
 	  
 	 DELAWARE
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 
	 4.
 	 COCA-COLA BOTTLING
 COMPANY OF MOBILE, INC.
 	  
 	 ALABAMA
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 
	 5.
 	 SUNBELT COCA-COLA BOTTLING
 COMPANY, INC.
 	  
 	 DELAWARE
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 
	 AFFILIATED GROUP:
 	  
 	  
 	  
 	 $50,532,000
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 
	 1.
 	 COCA-COLA ENTERPRISES INC.
 	  
 	 DELAWARE
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 
	 2.
 	 THE COCA-COLA BOTTLING
 COMPANY OF MEMPHIS, TENN.
 	  
 	 DELAWARE
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 
	 3.
 	 FLORIDA COCA-COLA BOTTLING
 COMPANY
 	  
 	 TENNESSEE
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 
	 4.
 	 DELAWARE
 COCA-COLA BOTTLING
 COMPANY, INC.
 	  
 	 DELAWARE
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 
	 5.
 	 JOHNSTON COCA-COLA BOTTLING
 GROUP, INC.
 	  
 	 DELAWARE
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 
	 COCA-COLA BOTTLING COMPANY 
 UNITED, INC.
 	  
 	 ALABAMA
 	  
 	 $  3,483,000
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 
	 RODDY COCA-COLA BOTTLING
 COMPANY
 	  
 	 TENNESSEE
 	  
 	    1,616,000
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 
	 EASTERN CAROLINA COCA-COLA
 BOTTLING COMPANY, INC.
 	  
 	 NORTH CAROLINA
 	  
 	      664,000
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 
	 BIG SPRINGS, INC.
 	  
 	 DELAWARE
 	  
 	      468,000
 	  
 
												

  

	 THE COASTAL COCA-COLA
 BOTTLING COMPANY
 	  
 	 SOUTH CAROLINA
 	  
 	 620,000
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 
	 CAROLINA COCA-COLA BOTTLING
 CO.
 	  
 	 SOUTH CAROLINA
 	  
 	 488,000
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 
	 DURHAM COCA-COLA BOTTLING
 COMPANY
 	  
 	 DELAWARE
 	  
 	 658,000
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 
	 COCA-COLA BOTTLING WORKS
 OF TULLAHOMA, INC.
 	  
 	 TENNESSEE
 	  
 	 442,000
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 
	 MIDDLESBORO COCA-COLA
 BOTTLING WORKS, INC.
 	  
 	 KENTUCKY
 	  
 	  75,000
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 
	 ORANGEBURG COCA-COLA
 BOTTLING CO.
 	  
 	 SOUTH CAROLINA
 	  
 	 106,000
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 
	 ROCK HILL COCA-COLA
 BOTTLING CO.
 	  
 	 SOUTH CAROLINA
 	  
 	  68,000
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 
	 SANFORD COCA-COLA BOTTLING CO.
 	  
 	 NORTH CAROLINA
 	  
 	 142,000
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 
	 ABERDEEN COCA-COLA BOTTLING
 COMPANY, INCORPORATED
 	  
 	 NORTH CAROLINA
 	  
 	  38,000
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 
	 CAMERON COCA-COLA BOTTLING CO.
 	  
 	 PENNSYLVANIA
 	  
 	 608,000
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 
	 COCA-COLA BOTTLING COMPANY
 	  
 	 DELAWARE
 	  
 	 750,000
 	  
 
	  
 	  
 	  
 	  
 	 
 	  
 
	 OF NORTHERN NEW ENGLAND, INC.
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	 TOTAL
 	  
 	 $77,719,000
 	  
 
	  
 	  
 	  
 	  
 	 
 	  
 

 
-2-

  EXHIBIT B
   

	 COCA-COLA ENTERPRISES INC.
 
	  
 
	 100 Galleria Pky., Suite 800
 Atlanta, GA 30339
 Attention: James C. Wardlaw
 404/852-7002 Fax 404/852-7012
 
	  
 
	  
 
	 COCA-COLA BOTTLING OF MEMPHIS
 
	  
 
	 100 Galleria Pky., Suite 800
 Atlanta, GA 30339
 Attention: James C. Wardlaw
 404/852-7002 Fax 404/852-7012
 
	  
 
	  
 
	 FLORIDA COCA-COLA BOTTLING CO.
 
	  
 
	 100 Galleria Pky., Suite 800
 Atlanta, GA 30339
 Attention: James C. Wardlaw
 404/852-7002 Fax 404/852-7012
 
	  
 
	  
 
	 DELAWARE COCA-COLA BOTTLING COMPANY, INC.
 
	  
 
	 100 Galleria Pky., Suite 800
 Atlanta, GA 30339
 Attention: James C. Wardlaw
 404/852-7002 Fax 404/852-7012
 
	  
 
	  
 
	 JOHNSTON COCA-COLA BOTTLING GROUP, INC.
 
	  
 
	 100 Galleria Pky., Suite 800
 Atlanta, GA 30339
 Attention: James C. Wardlaw
 404/852-7002 Fax 404/852-7012
 
	  
 
	  
 
	 COCA-COLA BOTTLING CO. CONSOLIDATED
 
	  
 
	 P.O. Box 31487
 4901 Chesapeake Drive 28216
 Charlotte, N. C. 28231
 Attention:
Michael A. Perkis
 704/551-4535 Fax 704/551-4646
 

  

	 COCA-COLA BOTTLING COMPANY OF ROANOKE, INC.
 
	  
 
	 P.O. Box 31487
 4901 Chesapeake Drive 28216
 Charlotte, N. C. 28231
 Attention:
Michael A. Perkis
 704/551-4535 Fax 704/551-4646
 
	  
 
	  
 
	 COCA-COLA BOTTLING COMPANY OF NASHVILLE, INC.
 
	  
 
	 P.O. Box 31487
 4901 Chesapeake Drive 28216
 Charlotte, N. C. 28231
 Attention:
Michael A. Perkis
 704/551-4535 Fax 704/551-4646
 
	  
 
	  
 
	 COCA-COLA BOTTLING COMPANY OF MOBILE, INC.
 
	  
 
	 P.O. Box 31487
 4901 Chesapeake Drive 28216
 Charlotte, N. C. 28231
 Attention:
Michael A. Perkis
 704/551-4535 Fax 704/551-4646
 
	  
 
	  
 
	 SUNBELT COCA-COLA BOTTLING COMPANY, INC.
 
	  
 
	 P.O. Box 31487
 4901 Chesapeake Drive 28216
 Charlotte, N. C. 28231
 Attention:
Michael A. Perkis
 704/551-4535 Fax 704/551-4646
 
	  
 
	  
 
	 COCA-COLA BOTTLING COMPANY UNITED, INC.
 
	  
 
	 P.O. Box 2006
 4600 East Lake Blvd.
 Birmingham, Alabama 35201
 Attention: Elbert
Mullis
 205/841-2653 Fax 205/849-4679
 
	  
 
	  
 
	 RODDY COCA-COLA BOTTLING COMPANY
 
	  
 
	 P.O. Box 50338
 5723 Middlebrooke Pike 37921
 Knoxville, Tennessee 37950
 Attention:
William J. Mitchell
 615/558-3000 Fax 615/558-3327
 

  
 
 -2-

	 EASTERN CAROLINA COCA-COLA BOTTLING CO. INC.
 
	  
 
	 P.O. Box 24
 Goldsboro, N. C. 27530
 Attention: George W. Tennille
 919/735-2653 Fax 919/736-0781
 
	  
 
	  
 
	 DURHAM COCA-COLA BOTTLING COMPANY
 
	  
 
	 P.O. Box 2627
 3214 Hillsborough Rd.
 Durham, N. C. 27705
 Attention:
M. Hager Rand
 919/383-1531 Fax 919/382-8793
 
	  
 
	  
 
	 THE COASTAL COCA-COLA BOTTLING COMPANY, INC.
 
	  
 
	 P.O. Box 1029
 Marion, S. C. 29571
 Attention: Cyrus T. Sloan, Jr.
 803/773-3336 Fax 803/773-3040
 
	  
 
	  
 
	 CAMERON COCA-COLA BOTTLING CO.
 
	  
 
	 P.O. Box 814
 124 W. Maiden St.
 Washington, PA 15301
 Attention: Gen
Cameron Wilson
 412/222-7700 Fax 412/223-0101
 
	  
 
	  
 
	 CAROLINA COCA-COLA BOTTLING COMPANY
 
	  
 
	 P.O. Box 1150
 712 E. Liberty Street
 Sumter, S. C. 29150
 Attention:
A. T. Heath, III
 803/773-3336 Fax 803/773-3040
 
	  
 
	  
 
	 COCA-COLA BOTTLING COMPANY OF NORTHERN NEW ENGLAND, INC.
 
	  
 
	 One Executive Park Drive
 Bedford, New Hampshire 03110
 Attention: John F.
Palermo
 603/627-0627 Fax 603/627-1166
 
	  
 
	  
 
	 BIG SPRINGS, INC.
 
	  
 
	 P.O. Box 2709
 514 Clinton Avenue 35801
 Huntsville, Alabama 35804
 Attention: Jerry Thomas
 205/433-9450 Fax 205/533-6151
 

  
 
 -3-

	 COCA-COLA BOTTLING WORKS OF TULLAHOMA, INC.
 
	  
 
	 P.O. Box 1750
 1502 E. Carroll
 Tullahoma, Tennessee 37388
 Attention: J. Steven Ennis
 615/455-3466 Fax 615/455-4998
 
	  
 
	  
 
	 SANFORD COCA-COLA BOTTLING CO.
 
	  
 
	 P.O. Box 1207
 1605 Hawkins Avenue Sanford, N. C. 27330
 Attention: Charles
Ingram
 919/774-4111 Fax 919/774-3318
 
	  
 
	  
 
	 ORANGEBURG COCA-COLA BOTTLING CO., INC.
 
	  
 
	 P.O. Box 404
 Highway 601 North
 Orangeburg, S. C. 29115
 Attention:
Jim Avinger
 803/534-5492 Fax 803/534-8890
 
	  
 
	  
 
	 MIDDLESBORO COCA-COLA BOTTLING WORKS, INC.
 
	  
 
	 P.O. Box 1468
 1324 Cumberland Avenue
 Middlesboro, Ky 40965
 Attention: Neil G. Barry
 606/248-2660 Fax 606/248-2660
 
	  
 
	  
 
	 ROCK HILL COCA-COLA BOTTLING COMPANY
 
	  
 
	 P.O. Box 2555CRS
 520 Cherry road
 Rock Hill, S. C. 29731
 Attention:
W. M. Mauldin, Jr.
 803/328-2406 Fax 803/328-6906
 
	  
 
	  
 
	 ABERDEEN COCA-COLA BOTTLING COMPANY, INCORPORATED
 
	  
 
	 P.O. Box 518
 203 West South Street
 Aberdeen, N. C. 28315
 Attention: Alan Moon
 919/944-2305 No Fax
 

 
 -4-

  EXHIBIT C
 SUPPLEMENT
TO
GUARANTY AGREEMENT
 THIS SUPPLEMENT TO GUARANTY AGREEMENT
(this “Supplement to Guaranty Agreement”), dated as of ____________ , 19 _____, made by ____________, a ____________ corporation (the “Additional Guarantor”), in favor of TRUST COMPANY BANK, a Georgia
banking corporation (“TCB”), TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA (the “Purchaser”), so long as it shall hold any of the Notes referred to below, all other Registered Noteholders (as this and other capitalized
terms used herein without definition are defined pursuant to Section 1 below) and the other Lenders;
 W
I T N E S S E T H:
 WHEREAS, Southeastern Container, Inc., a North
Carolina corporation (“Southeastern”) has entered into a Loan Agreement, dated as of August 30, 1990, with TCB (the “Initial Loan Agreement”), providing for certain loans from TCB to Southeastern;
 WHEREAS, Southeastern has also entered into a Note Purchase Agreement, dated as of August 30, 1990, with Purchaser (the “Note Agreement”) pursuant to which Southeastern
issued and sold to Purchaser $25,000,000 in aggregate principal amount of Southeastern’s 10.15% Senior Secured Notes due August 1, 2000 (together with all Notes issued in substitution or exchange therefor in accordance with the terms of the
Note Agreement, the “Notes”), the entire principal amount of which remains outstanding on the date hereof;
 WHEREAS, Southeastern anticipated that it
may become necessary in the future to amend the Initial Loan Agreement or the Note Agreement or from time to time to enter into other loan agreements (together with the Initial Loan Agreement and the Note Agreement and solely to the extent that
Lenders have consented to such loan agreements in writing in accordance with the terms of Section 15 of the Guaranty (as defined below), the “Loan Agreements”) relating to extensions of credit being made in connection with a variety of
transactions, including without limitation, revolving credits, committed or uncommitted lines of credit, term loans, letter of credit facilities, swap agreements, receivables purchase agreements, note purchase agreements, bond indentures and
repurchase agreements;
  

  WHEREAS, certain of the stockholders and participating patrons of Southeastern agreed to guarantee a portion of the obligations of
Southeastern pursuant to the Loan Agreements up to a stated principal amount pursuant to the terms of that certain Amended and Restated Guaranty Agreement dated as of January 31, 1993 made by each of the parties listed on the signature pages thereto
(collectively, the “Guarantors”) for the benefit of the Lenders (the “Guaranty”);
 WHEREAS, it is a condition to its status as a
stockholder and/or participating patron of Southeastern that the Additional Guarantor becomes a party to the Amended and Restated Guaranty;
 WHEREAS,
Additional Guarantor benefits from the extensions of credit made by the Lenders to Southeastern and wishes to execute and deliver to the Lenders this Supplement to Guaranty Agreement;
 NOW, THEREFORE, in consideration of the premises and in order to induce the Lenders to make the loans to Southeastern pursuant to the Loan Agreements, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Additional Guarantor hereby agrees as follows:
 I.         Defined Terms. Capitalized terms not otherwise defined herein which are used in the Guaranty are used
herein with the meanings specified for such terms in the Guaranty.
 II.        Additional
Guarantor. The Additional Guarantor agrees that it shall be and become a Guarantor for all purposes of the Guaranty and shall be fully liable thereunder to the Lenders and other Guaranteed
Parties to the same extent and with the same effect as though the Additional Guarantor had been one of the Guarantors originally executing and delivering the Guaranty subject to the limitations set forth in Section 2 of the Guaranty. All references
in the Guaranty to “Guarantors” or any “Guarantor” shall be deemed to include and to refer to the Additional Guarantor.
 III.      Individual Base Amount. In the event that the Additional Guarantor executing this Supplemental Guaranty is already a party to
the Guaranty, such Additional Guarantor is executing this Supplemental Guaranty to evidence the increase of its Individual Base Amount to the Individual Base Amount set forth on the signature page hereof.
 IV.      Governing Law; Submission to Jurisdiction; Waiver of Jurv Trial.
 A.        THIS SUPPLEMENT TO GUARANTY SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF
THE STATE GOVERNING THE RELEVANT LOAN AGREEMENT GUARANTEED HEREBY (WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW PRINCIPLES THEREOF).
 
 -2-

  B.        AS PART OF THE CONSIDERATION FOR THE FINANCIAL
ACCOMMODATIONS EXTENDED TO SOUTHEASTERN BY THE LENDERS, THE ADDITIONAL GUARANTOR CONSENTS TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED WITHIN THE STATES OF GEORGIA OR NEW YORK, OR ANY OTHER STATE THE LAWS OF WHICH GOVERN THIS AGREEMENT
IN ACCORDANCE WITH SECTION 19 HEREOF, WAIVES TRIAL BY JURY, TO THE EXTENT PERMITTED BY LAW, AND FURTHER WAIVES ANY OBJECTION TO JURISDICTION AND VENUE OF ANY ACTION INSTITUTED HEREUNDER OR UNDER THE GUARANTY, AND FURTHER AGREES NOT TO ASSERT ANY
DEFENSE BASED ON LACK OF JURISDICTION OR VENUE.
 IN WITNESS WHEREOF, the Additional Guarantor has caused this Supplement to Guaranty
to be duly executed and delivered under seal by its duly authorized officers as of the date first above written.
   

	 Address for Notices:
 
 
 	  
 	 ADDITIONAL GUARANTOR:
 
 
 
	  
 	  
 	  
 
	 
 	  
 	 
 
	  
 	  
 	  
 	  
 
	 
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 
	 
 	  
 	  
 	  
 
	  
 	  
 	 By:
 	  
 
	 
 	  
 	  
 	 
 
	 Attn:  
 	  
 	  
 	  
 	 Title: 
 	  
 
	  
 	 
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 
	 INDIVIDUAL BASE
 	  
 	  
 	  
 
	 AMOUNT:
 	  
 	 Attest:
 	  
 
	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	 Title:
 	  
 
	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	 [CORPORATE SEAL]
 
								

  
 
 -3-

  ACKNOWLEDGMENT AND CONSENT
 TRUST
COMPANY BANK, a Georgia banking corporation (“TCB”) and TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA (“Teachers”) hereby agree as follows in connection with that certain Amended and Restated Guaranty dated as of even
date herewith, attached hereto and incorporated by this reference (the “Guaranty”; all terms used herein without definition shall have the meanings set forth in the Guaranty):
 (1)       TCB hereby represents and warrants to Teachers that the Initial Loan Agreement is in full force and effect as of the date hereof and
has not been amended, modified or supplemented in any material respect. As of the date hereof, TCB is the sole lender pursuant to the Initial Loan Agreement and the Initial Loan Agreement provides for a revolving credit commitment in favor of
Southeastern in an aggregate principal amount not to exceed $15,000,000, although Teachers acknowledges and agrees that TCB and Southeastern are in the process of amending and restating the Initial Loan Agreement to provide for revolving credit
commitments and a working capital commitment to Southeastern in the aggregate principal amount of $30,000,000, which Teachers will be requested to consent to pursuant to the terms of the Guaranty.
 (2)       Teachers hereby represents and warrants to TCB that the Note Agreement is in full force and effect as of the date
hereof and has not been amended, modified or supplemented in any material respect. As of the date hereof, Teachers is the sole noteholder pursuant to the Note Agreement and the principal amount outstanding pursuant to the Note Agreement is equal to
$25,000,000.
 (3)       Based upon the foregoing, each of TCB and Teachers
acknowledges and agrees that the Initial Loan Agreement and the Note Purchase Agreement shall each constitute a “Loan Agreement” pursuant to the terms of the Guaranty and each of TCB and Teachers shall constitute a “Lender”
pursuant to the term of the guaranty entitled to the benefits thereof.
 (4)       As
of the date hereof, each of TCB and Teachers acknowledges and agrees that the Initial Guaranties are superseded and replaced by the Guaranty.
  

  IN WITNESS WHEREOF, each of the undersigned has caused this Acknowledgment and Consent to be duly executed as of this 15th day of July,
1993.
  

	  
 	  
 	  
 	 TRUST COMPANY BANK
 
	  
 	  
 	  
 	  
 	 By: 
 	 
 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	  
 	 Title: AVP
 

  

	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	 By: 
 	 
 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	  
 	 Title: VP
 

  

	  
 	  
 	  
 	 TEACHERS INSURANCE AND ANNUITY
      ASSOCIATION OF AMERICA
 
	  
 	  
 	  
 	  
 	 By: 
 	 
 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	  
 	 Title: Illegible
 

 
 -2-MANAGEMENT AGREEMENT

  Exhibit 10.11
 MANAGEMENT
AGREEMENT
 This Management Agreement (“Agreement”) made and entered into this ____ day of May,
1994, by and among Coca-Cola Bottling Co. Consolidated, a Delaware corporation (“Manager”) and South Atlantic Canners, Inc., a South Carolina corporation (“SAC”).
 W I T N E S S E T H :
 By this Agreement, SAC intends to retain Manager for the purpose of managing its day to day operations as is more fully described in the Agreement. Manager has managerial expertise, knowledge of the industry, access to
certain raw materials, and other capabilities which indicate that its services will be beneficial to SAC and its membership. Under this Agreement, it is anticipated that Manager will supervise day to day operations without material interference from
the SAC Board of Directors (“SAC Board”) and that the SAC Board will generally perform the typical board functions of supervising the performance of management and establishing policy for SAC.
The parties recognize, however, that the SAC Board has a legal obligation to SAC and its membership to oversee and direct the operations of SAC and nothing contained in this Agreement shall remove from the SAC Board its obligations or ability to
direct the business and affairs of SAC. It is anticipated that a smooth working relationship will be established through the adoption each year of an annual business plan (“Annual Business Plan”), under which Manager can perform its responsibilities as described herein.
 The parties believe that the efficiencies to be derived from
Manager’s supervisory capabilities and the additional purchasing volume Manager brings to SAC in its capacity as a member will prove to be beneficial to Manager and to SAC’s membership in general.
 NOW, THEREFORE, in consideration of the mutual promises, obligations and agreements contained herein, the parties hereto, intending to be legally bound, do hereby agree as
follows:
 Section 1.       Definitions.
 1.01    Defined
Terms. The following terms shall have the meanings set forth in the Section of this Agreement indicated below:
   

	 Defined Term
 	  
 	 Section
 	  
 
	  
 	  
 	  
 	  
 
	 Agreement
 	  
 	 Preamble
 	  
 
	 Annual Business Plan
 	  
 	 Preamble
 	  
 
	 Claimant
 	  
 	 Section 10.03(a)
 	  
 
	 Claim
 	  
 	 Section 10.02
 	  
 
	 CPI
 	  
 	 Section 6.01
 	  
 

  
 
 

   

	 SAC Bank Account
 	  
 	 Section 6.03(d)
 	  
 
	 Disclosing Party
 	  
 	 Section 9.04
 	  
 
	 Effective Date
 	  
 	 Section 8.01
 	  
 
	 Environmental Manager
 	  
 	 Section 3.01(c)(4)
 	  
 
	 Environmental Laws
 	  
 	 Section 3.01(c)(4)(i)
 	  
 
	 Expansion
 	  
 	 Section 3.01(c)(3)
 	  
 
	 Facility
 	  
 	 Section 2.01
 	  
 
	 FICA
 	  
 	 Section 3.02
 	  
 
	 FUTA
 	  
 	 Section 3.02
 	  
 
	 Indemnitee
 	  
 	 Section 10.02
 	  
 
	 Losses
 	  
 	 Section 10.02
 	  
 
	 Manager
 	  
 	 Preamble
 	  
 
	 Manager’s Corporate Offices
 	  
 	 Section 3.01
 	  
 
	 Manager Employee(s)
 	  
 	 Section 3.01(c)(2)
 	  
 
	 Management Fee
 	  
 	 Section 6.01
 	  
 
	 Notified Party
 	  
 	 Section 10.03(a)
 	  
 
	 Physical Case
 	  
 	 Section 6.01
 	  
 
	 Proposed Budget
 	  
 	 Section 3.01(a)(2)
 	  
 
	 Receiving Party
 	  
 	 Section 9.04
 	  
 
	 Reimbursable Expenses
 	  
 	 Section 6.02
 	  
 
	 Rules
 	  
 	 Section 10.02
 	  
 
	 SAC
 	  
 	 Preamble
 	  
 
	 SAC Board
 	  
 	 Preamble
 	  
 
	 SAC Business
 	  
 	 Section 2.01
 	  
 
	 SAC Employee(s)
 	  
 	 Section 3.01(c)(2)
 	  
 
	 SAC Executive Committee
 	  
 	 Section 3.01(a)(5)
 	  
 
	 Summary of Major Operational and Business Items
 	  
 	 Section 3.01(a)(2)
 	  
 
	 Term
 	  
 	 Section 8.02
 	  
 

 
 Section 2.       Appointment of Manager.
 2.01    Appointment of and Acceptance by Manager. SAC hereby appoints and retains
Manager for the purpose of managing SAC’s canning, bottling, and other soft drink packaging operations (the “SAC Business”), effective as of the Effective Date, and authorizes Manager to
supervise, direct and control the day-to-day operation of the SAC Business at 601 Cousar Street, Bishopville, South Carolina (the “Facility”) in accordance with this Agreement. In the
appointment of Manager to handle day to day operations hereunder, both SAC and Manager understand and agree that the business and affairs of SAC shall be under the direction and control of the SAC Board, and Manager agrees to carry out the policies
and directives of the SAC Board. Manager hereby accepts this appointment and agrees to perform its duties in accordance with this Agreement.
 2.02    Standards of Performance. In providing services under this Agreement, Manager shall give the care and attention to its responsibilities that a
reasonable business manager in its position would be expected to give. Manager agrees to provide and employ a sufficient number of personnel with adequate
  

- 2
-

  training and experience to perform such duties competently and in a businesslike manner in such a way as to cause the operations of SAC to be carried on
efficiently and in the best interests of SAC. In its capacity as Manager under this Agreement, Manager shall perform its duties in good faith and shall loyally seek to promote the best interests of SAC. Manager shall perform in a timely and
cooperative manner.
 2.03    Non-exclusive Service. It is
understood and agreed that nothing in this Agreement shall confer upon SAC an exclusive right to Manager’s service. Manager may contract with others for the provision of expertise and services similar to those to be provided to SAC as
contemplated herein.
 2.04    Services to be Performed by SAC’s Officers and
Others. SAC will continue to have as corporate officers a President, a Secretary and such other officers as may be determined by the SAC Board, who shall perform such functions as the SAC Board may assign to them. Nothing in
this Agreement shall prevent SAC from obtaining services from others which are not assigned to Manager under Sections 3 and 4 of this Agreement.
 Section
3.       Services and Responsibilities of Manager.
 3.01    Primary Services and Responsibilities. Within the
scope of the authority granted to it under this Agreement and subject to any limitations provided herein, Manager will undertake to manage SAC in a manner such that it may meet its operating requirements. It is anticipated by the parties that,
during an interim transition period--from the Effective Date until Manager determines that it is in a position to perform the administrative functions itself (but not later than September 1, 1994), Manager will primarily supervise the administrative
services included herein and performed at the Facility and that, following such transition period, Manager will perform such functions primarily at Manager’s Corporate Offices located at Rexford Road, Charlotte, North Carolina (“Manager’s Corporate Offices”). Manager is hereby authorized to and shall provide the following services or cause the following services to be
performed:
 (a)       Annual Business Plan.
Manager will develop (from the information provided by SAC members) an Annual Business Plan to be adopted by the SAC Board prior to the beginning of each fiscal year with such changes as the SAC Board deems necessary.
 (1)       Adoption. Manager will
present the proposed plan to the SAC Board no later than thirty (30) days prior to the beginning of SAC’s fiscal year that is the subject of such projections. In the event information necessary to complete such projections are not furnished to
Manager, Manager will present projections utilizing the provided information plus reasonable estimates for the unprovided information, which will be based on
  

- 3
-

  the prior year’s information plus 3%, as adjusted for changes made during the year and other changes reasonably anticipated by Manager. As soon as
practicable after the Effective Date, Manager will submit to the SAC Board for approval a business plan for the interim period of SAC’s 1994 fiscal year commencing the effective date hereof and ending on August 31, 1994. It is anticipated that
this interim period business plan will essentially be a continuance of SAC’s current business plan for its 1993-94 fiscal year. SAC shall deliver a copy of each Annual Business Plan, and the interim period business plan for the 1993-94 year, to
Manager as soon as practicable following adoption thereof by SAC Board.
 (2)       General Contents. Manager’s proposed Annual Business Plan will contain a proposed annual budget (“Proposed Budget”), a summary of major operational and financial items (“Summary of Major Operational and Business Items”) projected for the year in
sufficient detail for the SAC Board to determine the nature and extent of proposed operations, an estimate of the Management Fee and Reimbursable Expenses SAC will be asked to pay to Manager for the year, and such other items as the SAC Board may
request.
 (3)       Projections, Developments, and Anticipated
Events. The Proposed Budget will contain annual projections of volume, estimated operating revenues based upon pricing at the end of the previous fiscal year, required capital expenditures,
operating expenses and cash flow, and the presentation of items will show a breakdown of each item for each of SAC’s operating allocation units (cans, bottles, etc.). The Summary of Major Operational and Business Items will include a
description of proposed activities in areas for which Manager has operational responsibility under Section 3.01(c), a description of significant developments relating to the business and financial items for which Manager has responsibility under
Section 3.01(b), and a description of other major operational and business items, if any, which Manager reasonably anticipates for the upcoming year.
 (4)       Effect of Not Adopting Business Plan Prior to the Commencement of the Fiscal Year. If the
SAC Board has not adopted an Annual Business Plan prior to the commencement of any fiscal year, Manager shall continue to provide management functions for SAC based upon the most recently adopted Annual Business Plan (or interim period business plan
for the 1993-94 fiscal year, if that is the most recently adopted business plan), until such time as a new Annual Business Plan is adopted and takes effect for such fiscal year; provided, however, that (i) any CPI increases that will be due as part
of the Management Fee under Section 6.01 for the new fiscal year and (ii) any previously approved increase in a normal, recurring operating expense (such as, employee compensation) since the adoption of
  
 
- 4
-

  the most recent Annual Business Plan will take effect with the beginning of such year.
 (5)       Performance of Services Under the Annual Business Plan and
Deviations Therefrom. In performing its services under this Agreement, Manager shall follow the Annual Business Plan adopted for the fiscal year, unless otherwise directed by the SAC Board. If
Manager encounters a business situation which will require it to deviate from the Annual Business Plan or it discovers that it or SAC has inadvertently deviated from the plan, it shall immediately consult with the Executive Committee of the SAC
Board (“SAC Executive Committee”) about the situation and obtain approval for such deviation. If approval is given by the SAC Executive Committee, Manager shall be allowed to continue with
such deviation until the next meeting of the SAC Board at which time the SAC Board can consider the matter. If the SAC Executive Committee does not approve of the deviation, the matter will immediately be brought to the attention of the SAC
Board.
 (b)       Business/Finance. Manager will
be responsible for accounting, tax, treasury and internal policy auditing services in connection with the financial management of the SAC Business.
 (1)       Contracts. Manager shall have the right to enter into contracts in
the ordinary course of business in accordance with the Annual Business Plan and thereby bind SAC; provided, however, that the SAC Board may set size limitations above which approval of the SAC Board is required.
 (2)       Treasury Management. Manager will provide necessary treasury management services for SAC including the arrangement and administration of financings (subject to SAC Board approval) and bank transactions and cash management services
including receipt of and responsibility for all income realized by SAC and disbursement of funds for satisfaction of the debts, obligations and expenses of SAC and for distributions of patronage dividends as determined by the SAC Board.

(3)       Accounting. Manager will maintain accounting systems and records for SAC which shall be sufficiently separate from Manager’s other accounts for the SAC Board to have full access to its accounts without raising questions
about the confidentiality of Manager’s files. Manager shall provide the following functions or prepare the following reports:
 (i)       Accounts receivable, credit and collections including credit approval, billing, collection and cash application, as necessary.
  
 
- 5
-

  (ii)      Accounts payable functions including
check writing and accounting for paid expense and capital items.
 (iii)     General accounting functions including maintenance of general ledger and monthly financial reporting to the SAC Board.
 (iv)     Fixed asset record maintenance and accounting.
 (v)      Annual budgets.
 (vi)     Monthly reports to the SAC Board (i) comparing actual operating and capital expenditures to those budgeted and set forth in the Annual Business Plan, (ii) detailing significant management
actions taken by Manager, and (iii) such other matters as the SAC Board may request.
 (4)       Taxes. Manager shall handle the federal, state and local tax reporting and filing as well as the implementation of tax
planning strategies relating to federal, state and local taxes and user fees. Manager will also handle any required tax audits and maintain all Department of Transportation files and furnish copies of federal income tax returns to the SAC Executive
Committee prior to the filing of such returns.
 (5)       Internal Policy Audit. Manager will provide internal auditing services for monitoring compliance with SAC policies and procedures as Manager deems necessary.
 (c)       Operations. The major operational responsibilities of Manager
shall be in the areas of Manufacturing and Purchasing; Human Resources; Fleet, Transportation and Facility Administration; Environmental Services; Data Processing and Risk Management as follows:
 (1)       Manufacturing and Purchasing. Manager will oversee the manufacturing of products which meet franchise company specifications and will deliver all products within reasonable age standards as established by the SAC Board. The initial product age and quality standards to be
met by Manager are described in Exhibit A hereto. Manager will select and negotiate with vendors and purchase or, if in the best interest of SAC, lease on SAC’s behalf all capital equipment
from such vendors. If Management selects itself as a vendor or lessor to SAC under this paragraph, this arrangement must be disclosed to and approved by the SAC Board. Manager will, on behalf of SAC, procure all raw materials, supplies, utilities
and services which are required for or incidental to, the operations of the SAC
  
 
- 6
-

  Business. Manager will use its best efforts to make such procurement on a basis similar to that which is available to Manager; provided,
however, that both Manager and SAC hereby acknowledge that differences may arise with respect to prices of concentrates and syrup or as a result of different specifications, sources of supply and freight costs.
 (2)       Human Resources.
 (i)       Manager shall have responsibility for supervising employees of SAC (“SAC Employees”) and any employees of Manager providing services for SAC (“Manager Employees”) under this Agreement. All such management and
supervision by Manager for employees at the Facility shall be within the parameters established in the Annual Business Plan. Manager shall provide overall pay and benefit administration for SAC Employees (if any) and Manager Employees in accordance
with the Annual Business Plan. Any necessary labor contract negotiations will be performed by Manager, and Manager will handle the administration of any labor contract (including grievance procedures and arbitration) and any labor relations disputes
or other labor matters, and the SAC Board will be advised thereof. Manager will have the authority and responsibility to enter into, amend or terminate any employment agreements and consulting and agency agreements relating to SAC; provided,
however, that the SAC Board shall determine who shall perform professional accounting and legal services for SAC and set the terms for their employment. To the extent permitted by the Annual Business Plan or otherwise approved by the SAC Board,
Manager may supplement SAC with additional Manager Employees. For such purpose, Manager may utilize its employees or employees of a wholly owned subsidiary of Manager which have adequate training and experience to perform their duties competently
and in a businesslike manner. Manager shall have the authority to select, employ and terminate all employees performing services for SAC, whether they be SAC Employees or Manager Employees. Manager shall also have the right to substitute one of its
employees for a Manager Employee whenever Manager deems such substitution appropriate. Each Manager Employee and SAC Employee shall be subject to all of Manager’s applicable employment policies and practices (unless otherwise restricted by
union contracts) , and SAC shall not have the right to subject any Manager Employees or SAC Employees to any additional employment policies or practices or other work related rules or regulations (except rules and regulations reasonably related to
the health and safety of such employees or required under applicable law) absent Manager’s express consent to such action which shall not be unreasonably withheld. Manager shall provide substantially the same job-related education and training
to Manager Employees and SAC Employees as Manager provides to its other employees who perform the same or related tasks, and SAC shall reimburse Manager for the cost of the job-related education and training provided by third parties to SAC
Employees and Manager Employees. Manager shall compensate
  
 
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  Manager Employees in accordance with Manager’s standard compensation policies and practices for employees who perform the same or related tasks subject
to regional pay differences. Manager Employees shall be provided with employee benefits no more favorable as a whole than those provided to Manager’s other employees performing the same or related tasks in addition to workers’
compensation, unemployment compensation and all other benefits which an employer is required to provide for its employees under applicable law. Manager will adopt and enforce Manager’s Code of Business Conduct at the Facility.
 (ii)      In the event this Agreement is terminated or expires, all Manager Employees employed at the
Facility at such time shall have the opportunity to be considered for employment by SAC as SAC Employees. SAC shall be entitled to approach all such persons and discuss future employment with SAC, and Manager shall not attempt to retain or continue
such persons in its employment until they have first rejected an offer of employment with SAC or otherwise been informed by SAC that they will not be offered employment.
 (3)       Fleet, Transportation and Facility Administration. Manager will provide overall administration of fleet activities including assessment of required fleet expansion or replacement, acquisition of required equipment and direction of preventative maintenance programs in accordance with the
Annual Business Plan. Manager will be responsible for the administration of all transportation activities including the receipt of raw materials by or on behalf of SAC and the delivery of full goods to SAC members. Manager will also provide for the
administration of all facility activities including preventive and corrective maintenance and expansion. In particular, Manager will oversee the anticipated acquisition and installation of two high speed production lines at the Facility - one
generally suited for 2-liter PET bottles and one generally suited for 20-ounce PET bottles (the “Expansion”). In connection therewith, Manager shall be responsible for the planning,
implementation and supervision of the design, construction and start up of the Expansion including the selection of equipment manufacturers, architects, engineers and contractors and the procurement of all necessary permits.
 (4)       Environmental Services. Manager shall provide environmental management services, assigning the administration of those systems to an environmental compliance manager (“Environmental Manager”). The Environmental Manager will be provided by Manager, and the costs for the Environmental Manager will be born by Manager as part of the Management Fee. It is the responsibility of Manager to determine if all SAC operations at the Facility
are in compliance with, or exceed, the requirements of all applicable environmental laws, regulations, statutes,
  
 
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  ordinances and permit conditions (“Environmental Laws”). Any known or suspected exceptions to environmental compliance
requirements discovered by the Environmental Manager shall be reported immediately to Manager who, in turn, shall notify the SAC Executive Committee of his findings. SAC Executive Committee shall thereafter notify Manager of actions to be taken and
Manager shall, on behalf of SAC, take or cause to be taken such lawful actions as are requested of it by the SAC Executive Committee
 (5)       Data Processing. Manager shall utilize its computer systems to provide computer services required to carry out its
responsibilities under this Agreement.
 (6)       Risk Management. Manager shall contract for the purchase of insurance policies on behalf of SAC at coverage levels prescribed by the SAC Board. A list of the initial policies and coverage levels thereunder are set
forth in Exhibit B hereof. Manager shall, on behalf of SAC, cause such policies (or such other policies which are satisfactory to or required by SAC) to be maintained during the term of this
Agreement; provided, however, that subject to maintaining the coverage levels established by the SAC Board, Manager shall, at its discretion, have the authority to select or change insurance carriers, provided such carrier(s) have at least an
equivalent insurance company rating.
 3.02    Manager’s Personnel. All of Manager’s personnel providing services hereunder shall be exclusively employed by Manager or its affiliates, and Manager shall have the sole right to determine their conditions of employment, working hours, employment and
vacation policies, seniority, promotions and assignments. Manager shall have the exclusive right to hire and fire any such personnel and shall comply with all the laws applicable to the employment of such personnel. Subject to the provisions of
Section 6 below, Manager shall be solely responsible for the compensation of the employees and for all withholding taxes, Federal Insurance Contributions Act (“FICA”) and Federal Unemployment
Tax Act (“FUTA”) taxes, unemployment insurance, workmen’s compensation and any other insurance and fringe benefits with respect to such employees.
 3.03    Accounts, Books and Records.
 (1)       Manager shall maintain separate accounts, books, and records for SAC with respect to services under Sections 3 and 4 of this Agreement, and these accounts,
books and records shall be the property of SAC. Manager shall be responsible for maintaining SAC’s accounts, books and records in good order and shall maintain them in a way that is sufficiently separate from Manager’s own records so that
SAC may have access to such documents during regular business hours upon request without
  
 
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  raising an issue of confidentiality with respect to Manager’s proprietary information. In the event this Agreement is terminated for any reason or
expires, Manager shall return all of SAC’ s accounts, books and records in its possession to SAC as provided in Section 8.05.
 (2)       Manager shall make such of Manager’s books and records that relate to the SAC Business, including the pricing of raw materials to the extent such information relates to the
SAC Business, available to independent auditors selected by the SAC Board, or such other person or persons who are mutually acceptable to the parties, as is necessary to audit the Management Fee and Expenses charged to SAC and Manager’s
compliance with its obligations under this Agreement. Such auditors or person(s) shall be bound by a confidentiality agreement not to disclose such information to persons outside SAC or its professional advisors. SAC shall bear the costs of any
independent accounting firm engaged by it for the purpose of performing the review described in this paragraph.
 3.04    Attendance at Meetings of SAC Board and SAC Executive Committee.
 (1)       Manager will attend all regularly scheduled meetings of. the SAC Board and all special meetings of the SAC Board at which its attendance is requested as long as Manager has been
given reasonable notice of the time and place of the special meeting. At regularly scheduled meetings of the SAC Board, Manager will present a detailed report on operations, including any deviations from the Annual Business Plan, and Manager shall
advise the SAC Board of deviations from the Annual Business Plan which it reasonably anticipates in the future. At special meetings of the SAC Board, Manager shall provide such information with respect to the management of SAC as may be reasonably
requested by the SAC Board.
 (2)       It is anticipated that the SAC
Executive Committee will meet on a monthly basis. If requested by the SAC Executive Committee, Manager shall attend meetings of the SAC Executive Committee, and provide a verbal report on operations and such other information as may be requested by
the SAC Executive Committee. It is anticipated that the monthly meetings of the SAC Executive Committee will provide an opportunity for the parties to discuss SAC’s performance on an ongoing basis. It will give Manager a convenient mechanism
through which deviations from the Annual Business Plan can be reviewed and approved.
 Section 4.       Additional Services Provided by Manager.
 Manager
shall also perform other management functions relating to the SAC Business as may be requested from time to time by the SAC Board and agreed to by Manager, provided that the parties can agree upon a price for such services. If additional

 
 
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  services are requested under this Section, Manager agrees to offer SAC a price or fees (excluding applicable taxes and transportation costs, which shall be
charged to SAC at cost) for such services which is no less favorable than those charged by Manager to other entities of a similar size and location; provided, however, that under no circumstances shall Manager charge SAC an amount which is less than
Manager’s actual cost. If SAC and Manager cannot agree on a price for additional services under this Section, SAC shall be free to obtain such services from others.
 Section 5.       Board Functions. In
addition to SAC Board’s general responsibilities of directing the business and affairs of the organization and approving the Annual Business Plan, the responsibilities of the SAC Board will include, but not be limited to, supervising the
performance of SAC in accordance with the Annual Business Plan, establishing capital requirements for its members, reviewing and approving long-term business plans, approving major financial undertakings, and supervising the performance of Manager
under this Agreement. It will be the SAC Board’s responsibility to assure that all costs are fairly allocated (as determined by the Board) to the various products produced at SAC. Product pricing and rebates will be at the discretion of the SAC
Board.
 Section 6.       SAC
Payments.
 6.01    Management Fee. In consideration for the services to be provided by Manager pursuant to this Agreement, SAC shall pay to Manager a management services fee equal to 15¢ per physical case of bottles and cans, and 15¢ per unit of post mix bag-in-a
box as described in Exhibit C hereto (each such case or unit quantity of bottles, cans, or post-mix as described in Exhibit C being herein
referred to for purposes hereof as “Physical Case/Unit”) manufactured by SAC from and after the earlier of October 1, 1994 or the completion of
the Expansion (the “Management Fee”). No Management Fee shall be paid on shipments of bulk syrup. Subject to the provisions of Section 8.02, the Management Fee shall be increased effective as
of the beginning of each fiscal year (commencing September 1, 1995) in accordance with the increase in the Urban Wage Earners and Clerical Workers-South-ALL Items consumer price index published by the U.S. Department of Labor (“CPI”) for the most recent twelve (12) month period for which statistics are available on January 1 of each year; provided, however that the Management Fee shall not exceed 25¢ per Physical Case/Unit
during the Term of this Agreement.
 6.02    Reimbursable Expenses. With respect to payments made by Manager from Manager’s separate funds, SAC shall reimburse Manager for employees’ costs incurred at the Facility and other charges for specific materials or service at the Facility as well as third
party fees as long as such costs and charges are within
  
 
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  the ranges established in the Annual Business Plan or otherwise approved by the SAC Board (“Reimbursable
Expenses”).
 (a)       No Reimbursable Expense
other than those described in the Annual Business Plan shall be payable by SAC unless such expense is (1) less than $25,000, or (2) otherwise approved by the SAC Board or Executive Committee; provided, however, that the parties hereto recognize that
ordinary operating expenses of the SAC Business paid by Manager on SAC’s behalf that exceed amounts budgeted in the Annual Business Plan as a result of an increase in the sales volume shall be reimbursable to the extent such amounts are
reasonably incurred.
 (b)       Manager shall be responsible for
administrative costs it incurs to provide managerial services under this Agreement to the extent such services are not performed at the Facility. All functions that are currently being performed by Manager’s personnel based at Manager’s
Corporate Offices will not be considered to be performed at the Facility and will be covered by the Management Fee. These functions are listed in Exhibit E. Manager may not shift functions or
personnel to the Facility without approval of the SAC Board. Reimbursable Expenses will be included in the Annual Business Plan and are subject to audit at least annually at the request of SAC as provided in Section 3.03 hereof.
 (c)       The following expenses are examples of direct expenses of SAC to be paid by SAC
as provided in the Annual Business Plan or otherwise approved by the Board of Directors. In the event Manager pays direct expenses of this type on SAC’s behalf, such expenses shall be Reimbursable Expenses to Manager if the expenses are within
the Annual Business Plan or are approved by the SAC Board or SAC Executive Committee:
 (1)       Entity and On Site Expenses. SAC will incur direct expenses related to its form of entity or the SAC Business in the form of fees or taxes to third
parties such as state or local governments. In addition, SAC (or Manager on behalf of SAC) will incur certain expenses directly related to the routine operation of the Facility including the cost of On Site Employees of SAC or Manager. “On Site
Employees” shall include all direct and indirect labor as well as management and administrative employees based at the Facility whether such employees are Manager Employees or SAC Employees. Examples of such expenses are set forth on
Exhibit D.
 (2)       Miscellaneous Expense. Other reasonable and necessary expenses directly related to SAC’s business operations or administration thereof which are set forth on Exhibit F.
 6.03    Payments, Reconciliation and
Reimbursement.
  
 
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  (a)       Estimated Management Fee
Payments. Subject to the provisions of Section 8.01 hereof, the estimated Management Fee as determined from the Annual Business Plan shall be paid as follows: SAC shall pay to manager on or before the 15th of each month a
monthly disbursement equal to the estimated Management Fee allocable for each month as determined from the Annual Business Plan.
 (b)       Quarterly Reconciliation of Payments. On or before the end of each fiscal quarter, beginning with the second fiscal quarter following the Effective Date,
Manager will furnish to SAC a statement reconciling actual Physical Case/Unit sales for the immediately preceding fiscal quarter against the estimated amounts used in determining the amount of the monthly disbursement. For each quarter, the parties
shall make a true-up adjustment in such amount as is necessary to ensure that the aggregate estimated monthly payments paid to Manager for the reconciled fiscal quarter are not more than or less than the amounts that would have been paid had the
actual Management Fee been known to the parties at the time the monthly advances were paid. Any refund due from Manager to SAC, and any additional payment due from SAC to Manager, as a result of this reconciliation shall upon determination thereof
be paid or credited to the appropriate party in connection with the next ensuing payment of the estimated Management Fee.
 (c)       Reimbursement of Expenses. SAC shall reimburse the Manager for all Reimbursable Expenses. The Manager will provide SAC monthly with a detailed invoice
for all expenses reimbursable under this Section 6.03(c). All such invoices shall be due and payable upon receipt thereof.
 (d)       SAC Bank Account/Check Signing Authority.
 (1)       The Manager will administer a separate bank account on behalf of SAC (“SAC Bank Account”) into which sales revenue and all
other monies of SAC shall be deposited and from which expenses and fees of and distributions from SAC shall be paid. The Manager shall be responsible for maintaining and administering the SAC Bank Account in accordance with this Agreement. With the
consent of the SAC Board, Manager may change the financial institution in which the SAC Back Account is held or the branch location of the account.
 (2)       Within limitations established by the SAC Board, the Manager shall be authorized to sign all checks and drafts and execute all wire transfers for
disbursements in satisfaction of all debts, obligations and expenses of SAC and the countersignature of another person shall not be required.
 6.04    Management Fee Distinguished from Distributions. All fees and other payments paid by SAC to Manager under this Section
  
 
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  6 shall be treated as expenses of SAC and not part of a patronage distribution paid to Manager by SAC.
 Section 7.       Obligations of SAC.
 7.01    Duties of SAC. To facilitate the
performance of Manager’s services, SAC agrees to provide the following:
 (a)       to the extent approved by the SAC Board in the Annual Business Plan, provide or cause to be provided at no charge to Manager sufficient secure building space, furniture, facilities and office equipment to enable Manager’s on site
personnel to carry out their obligations under this Agreement;
 (b)      assist Manager
in obtaining, or cause to be obtained any permits, applications, authorizations or forms required by or from the federal, state or local governments for the specific services areas;
 (c)       afford Manager’s personnel unlimited and unrestricted access to all areas of the Facility;
 (d)      cooperate with Manager and direct all SAC personnel (if any) to extend maximum cooperation to Manager
in accordance with this Agreement;
 (e)       use its best efforts to support
Manager’s requests to SAC members for their estimates of annual volume requirements by brand and package for planning purposes each year and for use in preparing annual budgets;
 (f)       use its best efforts to support Manager’s request to SAC members to provide product orders to Manager in a manner and within time
parameters reasonably requested by manager;
 (g)      if approved by the SAC Board,
maintain a revolving line of credit or other financing sufficient in the reasonable judgment of SAC to satisfy SAC’s working capital needs; and
 In
addition, SAC agrees that it will cause the SAC Board or its designee to consider approval of any capital expenditure requiring approval, not otherwise set forth in the Annual Business Plan, no later than fifteen (15) Business Days after receipt of
written request for approval from Manager.
 Section 8.       Term
 8.01    Effective Date. This Agreement shall become effective upon the approval by SAC’s stockholders of an amendment to SAC’s Bylaws which will allow the SAC Board to assign some or all of the management
responsibilities for SAC to a person or organization other than the officers of the corporation (the “Effective Date”).
  
 
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  8.02    Duration.     Unless terminated pursuant to Section 8.03 below, this Agreement shall continue in full force and effect for a term of ten (10) years following the Effective Date (the “Term”). The
parties anticipate that they will negotiate an extension of this Agreement during the tenth (10th) year of the Term but acknowledge that neither party shall be bound by the provisions of this Agreement beyond the Term.
 8.03    Early Termination. This Agreement shall terminate early as follows:

(a)       Breach by Manager.
 (1)       If at any time Manager shall default in the performance of any of its obligations under this Agreement or
otherwise fails to comply in all material respects with policies and directives of the SAC Board, and such default or breach shall continue for a period of ninety (90) days after SAC has given notice to Manager specifying such default or breach and
requiring it to be remedied, then SAC shall have the right to terminate this Agreement, provided that SAC has determined in its reasonable business judgment that an alternative manager could have met the performance requirements during the period of
Manager’s noncompliance, and further provided that the SAC Board requires similar performance requirements of the management it selects to replace Manager.
 (2)       At the time this Agreement is executed, Manager will become a member of SAC and execute a membership agreement with SAC. At this time, Manager will also
sign a purchase agreement with SAC. This purchase requirement will be measured based on an annual year of September 1 to August 31 each year, starting on September 1, 1994. If Manager discontinues its membership or fails to meet its membership
requirements in SAC, SAC may terminate this Agreement. If Manager fails to meet its purchase requirements for any year, or it would be clear to a reasonable business person that it cannot or will not meet these requirements for a particular year,
SAC may terminate this Agreement.
 (3)       If the Agreement is terminated
under Section 8.03(a), Manager agrees to continue to provide services pursuant to the terms described herein for a reasonable transition period following termination by SAC, if SAC so requests.
 (b)       Breach by SAC. If at any time SAC shall default in the performance of any of its
material obligations under this Agreement and such default or breach shall continue for a period of ninety (90) days after Manager has given notice to SAC specifying such default or breach and requiring it to be remedied, then Manager shall have the
right to terminate this Agreement. If the Agreement is terminated under this paragraph, Manager agrees to continue to provide services pursuant to the
  
 
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  terms described herein for a reasonable transition period following termination by Manager, if SAC so requests.
 (c)       Failure of Expansion to be Completed. If the Expansion shall not have been
completed by December 31, 1994, Manager shall have the right at any time thereafter to terminate this Agreement prior to actual completion of the Expansion; provided, however, that Manager’s right to terminate under this Section 8.03(c) shall
not exist so long as SAC is using its best efforts to complete the expansion by December 31, 1994. Manager shall provide SAC with ninety (90) days notice of a termination under this paragraph.
 (d)       Bankruptcy Decree. If a decree or order of a court having jurisdiction has been
entered adjudicating a party bankrupt, insolvent, or approving a petition seeking reorganization of such party under any bankruptcy act or any similar applicable law, and such decree or order has continued undischarged or unstayed for a period of
sixty (60) days; or a decree or order of court having jurisdiction for the appointment of a receiver or liquidator or trustee or -assignee in bankruptcy or insolvency of such party or all or substantially all of its property, or for the
winding up or liquidation of its affiliates, has been entered, and such decree or order has remained in force undischarged or unstayed for a period of sixty (60) days, then the other party shall have the right to terminate this Agreement by giving
the first mentioned party notice to that effect within thirty (30) days after the expiration of such sixty-day period.
 (e)       Institution of Bankruptcy Proceedings. If a party institutes proceedings to be adjudicated voluntarily bankrupt or consents to the filing of bankruptcy
proceedings against it, or files a petition for answer or consent seeking reorganization under any bankruptcy act or similar law or consents to the filing of any petition or consents to the appointment of a receiver or liquidator or trustee or
assignee in bankruptcy or insolvency of it, or all or substantially all of its property, or makes a general assignment for the benefit of creditors or admits in writing its inability to pay its debts generally as they become due, then the other
party shall have the right to terminate this Agreement by giving the first mentioned party notice to that effect within thirty (30) days after the occurrence of such event.
 8.04    Effect of Termination. Upon the termination of this Agreement, this Agreement shall be of no further force and
effect, except that the provisions Section 8, 9, 10, and 11 shall continue in full force and effect indefinitely. Upon the termination of this Agreement, SAC shall immediately pay Manager the balance of the Management Fee accrued hereunder to the
date of termination and all reimbursable expenses payable to Manager hereunder. Upon termination or expiration of this Agreement, Manager shall immediately return to SAC all of SAC’s accounts,
  
 
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  books and records in Manager’s possession as well as any other property belonging to SAC, and Manager shall remove all Manager Employees from the
Facility and leave the Facility in good order, unless Manager has been requested by SAC to continue to provide services during a reasonable transition period under Sections 8.03 (a) or 8.03 (b) of this Agreement, in which case Manager shall return
SAC’s property and leave the premises in good order at the end of the transition period.
 Section 9.       Confidentiality.
 9.01    Confidential Information. The parties acknowledge that each of them may be required to disclose Confidential Information to government agencies or authorities by law, upon
the advice of counsel, and each shall endeavor to limit disclosure to that purpose. Each Party will give the other prior written notice of any disclosure pursuant to this paragraph, which notice shall specify the substance of any such
disclosure.
 9.02    Identification. Each party hereto will take
appropriate steps to enable the other party hereto to identify the information that should be protected as Confidential Information. Accordingly, each party shall legend or otherwise designate as proprietary any material furnished to the other party
which it believes to be Confidential Information. In addition, any Confidential Information that is imparted orally shall be identified as proprietary. Information that is not so identified shall not be considered Confidential Information. Also,
information that is generally known or that has been disclosed to a third party by the party claiming confidentiality shall not be considered Confidential Information for purposes of this Agreement.
 9.03    Acknowledgment of Confidential Information. Each party recognizes and acknowledges (a) that
Confidential Information of the other party may be commercially valuable proprietary products of such party, the design and development of which may have involved the expenditure of substantial amounts of money and the use of skilled development
experts over a long period of time and which afford such party a commercial advantage over its competitors; (b) that the loss of this competitive advantage due to unauthorized disclosure or use of Confidential Information of such party may cause
great injury and harm to such party; (c) that the restrictions imposed upon the parties under this Agreement are necessary to protect the secrecy of Confidential Information and to prevent the occurrence of such injury and harm.
 9.04    Nondisclosure. Each party who receives Confidential Information
hereunder (the “Receiving Party”) agrees that it will not, without the prior written consent of the party from whom such Confidential Information was obtained (the “Disclosing Party”), disclose, divulge or permit any unauthorized
person to
  
 
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  obtain any Confidential Information disclosed by the Disclosing Party (whether or not such Confidential Information is in written or tangible form) for as
long as the pertinent information or data remain Confidential Information. The Receiving Party hereby agrees to indemnify and hold harmless the Disclosing Party from and against any and all damage, loss, liability and expense (including, without
limitation, reasonable expenses of investigation and reasonable attorneys’ fees and expenses) arising from any such unauthorized disclosure by the Receiving Party or its personnel. The Receiving Party agrees that it will use any Confidential
Information disclosed by the Disclosing Party hereunder (whether or not such Confidential Information is in written or tangible form) only for purposes of the business of SAC, for as long as the pertinent information or data remain Confidential
Information. The Receiving Party hereby agrees to indemnify, defend and hold harmless the Disclosing Party from and against any Loss arising from any such unauthorized disclosure by the Receiving Party or its personnel.
 9.05    Security. To protect the Confidential Information of the parties, each party
shall adopt basic security measures of the kind commonly observed in industries in the United States of America that rely extensively on proprietary information. Security measures, to the extent appropriate, shall include physical security measures,
restrictions on access by unauthorized personnel, use of confidentiality agreements with personnel, legending, systematic segregation, and appropriate record retention systems.
 Section 10.     Manager’s Liability and Indemnification.

10.01  Limitation on Liability. Manager shall not be responsible for any errors in
judgment made in good faith in the performance of its duties hereunder; provided, however, that nothing contained herein shall release Manager of any responsibility it may have for claims based on the gross negligence or willful misconduct of
Manager.
 10.02  Indemnification. To the extent agents of SAC are entitled
to indemnification in SAC’s Bylaws, SAC shall indemnify and hold Manager and its affiliates, directors, officers, employees and agents (each an “Indemnitee”) harmless from any and all
liabilities, losses, damages, suits, judgments, fines, demands and expenses (“Losses”) arising in connection with the SAC Business (a “Claim”); provided, however, that any such Losses arising out of Manager’s material breach of this Agreement, gross negligence, fraud or willful misconduct shall be the responsibility of Manager and Manager shall be liable to and indemnify SAC
from and against any Losses incurred by SAC as a result thereof.
 10.03  Indemnity Procedure for
Third Party Claims. The obligations and liabilities of SAC to indemnify an Indemnitee or
  
 
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  Manager to indemnify SAC, as applicable, for third party claims (including those by Manager Employees) under this Section 10 shall be subject to the
following terms and conditions:
 (a)       The person or entity (i.e., SAC, Manager
or Indemnitee) making a claim (“Claimant”) will give the party from whom indemnity is sought (“Notified Party”) prompt notice of such
Claim. The failure to promptly notify a party of any such Claim shall not relieve the party of its obligation hereunder, unless the failure to so notify such party materially prejudices such party’s ability to defend such Claim.
 (b)      Following notice by the Claimant to the Notified Party of a Claim, the Notified Party shall
be entitled at its cost and expense to contest and defend such Claim by all -appropriate legal proceedings; provided, however, that notice of the intention so to contest shall be delivered by the Notified Party to the Claimant within
thirty (30) days from the date of receipt by the Notified Party of notice from the Claimant of the assertion of such Claim. Any such contest may be conducted in the name and on behalf of the Notified Party or the Claimant, as may be appropriate.
Such contest shall be conducted diligently by reputable counsel employed by the Notified Party, but the Notified Party shall keep the Claimant fully informed with respect to such Claim and the contest thereof and the Claimant shall have the right to
engage its own counsel at its own expense. If the Claimant joins in any such contest, the Notified Party shall have full authority, in consultation with the Claimant, to determine all action to be taken with respect thereto provided, however, that
in no event shall the Notified Party have authority to agree to any relief other than the payment of money damages by the Claimant unless agreed to by the Claimant. Each party shall bear its own expense of such representation. If any Claim is
asserted and the Notified Party fails to contest and defend such Claim within a reasonable period of time, the Claimant may take such action in connection therewith as the Claimant deems necessary or
desirable, including retention of counsel, and the Claimant shall be entitled to indemnification of the costs incurred in connection with such defense.
 (c)       If requested by the Notified Party, the Claimant shall cooperate with the Notified Party and its counsel, including permitting reasonable access to books and
records, in contesting any Claim which the Notified Party elects to contest or, if appropriate, in making any counterclaim against the person asserting the Claim on behalf of Claimant or Notified Party, or any cross-complaint against any person, and
the Notified Party will reimburse the Claimant for reasonable out-of-pocket costs (but not the cost of employee time expended) incurred by the Claimant in so cooperating.
  
 
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  (d)      The Claimant agrees to afford the Notified Party and its
counsel the opportunity to be present at, and to participate in, conferences with all persons, including governmental authorities, asserting any Claim against the Claimant or conferences with representatives or counsel for such persons. Unless the
Notified Party approves in writing the settlement of a Claim, no right to indemnification under Section 9.02 shall be established by such settlement.
 10.04  Force Majeure. Delay in performance or nonperformance by Manager or SAC shall be excused to the extent such performance is prevented by an Act of God or
other event beyond the reasonable control of the nonperforming party.
 Section 11.     Dispute Resolution.
 11.01  Attempts to Resolve. All disputes and differences raised by any party to this Agreement which may arise out of or in connection with or with respect to this Agreement (including but
not limited to any rights of indemnification under Section 10 hereof) will be settled as far as possible by means of negotiations between Manager and the SAC Executive Committee. If any such dispute is not resolved by Manager and the SAC Executive
Committee within five (5) business days of commencement of negotiations, then either party may submit the dispute to arbitration in accordance with Section 11.02 of this Agreement for a binding resolution thereof.
 11.02  Arbitration. Except as provided in Section 11.05 hereof, any dispute, controversy or
claim arising out of or relating to this Agreement or the breach, termination or validity thereof which cannot be resolved by the paries pursuant to Section 11.01 hereof shall be settled by arbitration in accordance with the Arbitration Rules of the
American Arbitration Association in effect on the date of this Agreement (the “Rules”) as modified in this Article. The arbitration shall be held at a site mutually agreeable to the parties.
 There shall be three arbitrators of whom each party shall select one within 15 days following respondent’s receipt of claimant’s notice of arbitration and statement of claim. The two
party-appointed arbitrators shall select a third arbitrator to serve as presiding arbitrator within 15 days of the appointment of the second arbitrator. In the event one party fails to appoint an arbitrator within said 15 day period, then the
arbitrator that has been selected by the other party shall select a second arbitrator and such arbitrators shall select a third arbitrator to be the presiding arbitrator.
 11.03  Claims and Judgments. Within twenty (20) days of the respondent’s receipt of the claimant’s notice of arbitration and
statement of claim, the respondent shall serve the claimant with its statement of defense and any counterclaims. Within twenty
  
 
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  (20) days of claimant’s receipt of the respondent’s statement of defense and counterclaims, the claimant shall serve its statement of
defense-to any counterclaims or set-offs asserted by the respondent. The tribunal shall permit and facilitate such prehearing discovery and exchange of documents and information to which the parties in writing agree or which it determines
is relevant to the dispute between the parties as is appropriate taking into account the needs of the paries and the desirability of making discovery expeditious and cost-effective. All discovery shall be completed within forty-five (45) days from
the date on which the respondent communicates its statement of defense and counterclaims, if any, to the claimant. The hearing shall be held no later than ninety (90) days following the selection of the presiding arbitrator. Any arbitration award
shall be rendered in U.S. dollars, with appropriate interest as determined by the tribunal. Judgment on any award shall be entered in any court having jurisdiction thereof.
 11.04  Submission to Jurisdiction. For purposes of disputes arising under this Agreement, the parties hereto submit themselves to the
jurisdiction of the state and federal courts located in North and South Carolina with respect to the enforcement of any arbitration award. Each of the parties hereby consents to the service of process by registered mail at its address set forth
below and agrees that its submission to jurisdiction and its consent to service of process by mail is made for the express benefit of the other party. The arbitration shall be governed by the Federal Arbitration Act, 9. U.S.C. §§ 1-16,
201-208.
 11.05  Right to Additional Remedies. Notwithstanding anything to
the contrary in this Article, in the event any intellectual property (including Confidential Information) is used in violation of the terms of this Agreement, each party shall be entitled, in addition to the remedy of arbitration set forth herein,
to apply immediately to any court of competent jurisdiction for immediate injunctive relief. Each party hereby submits itself to the jurisdiction of the state and federal courts located in North and South Carolina for any such relief or for the
enforcement of any arbitration award against such party.
 Section 12.     Press Release.
 The parties hereto shall attempt to consult
with each other, when possible, before issuing any press release or otherwise making any public statements with respect to this Agreement and the transactions contemplated hereby and shall not issue any such press release or make any public
statement prior to such consultation, except as may be required by law.
  
 
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  Section 13.     Independent Status of Parties.
 Except-as specifically provided herein, nothing contained in this Agreement shall be
construed to constitute a party as agent for the other party. Except as specifically provided herein, neither party shall have the right to bind the other party, transact any business in the other party’s name or on its behalf in any manner or
form, or to make any promises or representations on behalf of the other party.
 Section 14.     Assignment.
 Neither SAC nor Manager shall assign or transfer
any right or obligation hereunder whether by operation of law, merger (which, for purposes hereof, shall constitute an assignment) or otherwise without the prior written consent of the other. Any such attempted assignment or transfer in violation of
this Section 14 shall be void and without legal effect. Notwithstanding the foregoing, Manager may assign all or any of its rights and obligations hereunder to any wholly owned subsidiary (direct or indirect) of Manager, provided, however, that (a)
(i) Manager shall give SAC written notice of such assignment, (ii) any such assignee shall execute an agreement assuming such duties and obligations and deliver the same to SAC, and (iii) Manager shall deliver to SAC a written unconditional guaranty
of the performance of the duties and obligations so assigned and assumed and (b) such rights and obligations shall revert back to Manager at such time as the assignee ceases to be a wholly owned subsidiary of Manager. Subject to the foregoing, this
Agreement shall inure to the benefit of, and be binding upon, the successors and assigns of the parties hereto.
 Section 15.     Governing Law.
 This agreement shall
be governed by and construed in accordance with the laws of the State of North Carolina, regardless of any conflicts of laws or rules which would require the application of the laws of another jurisdiction.
 Section 16.     Miscellaneous.
 16.01 Notices. Any notice, request, instruction or other document to be given hereunder by any party hereto to any other Person shall be in writing and delivered personally or by
mail or any express mail service to the addresses set forth below.

	  
 	 (a)
 	 If to Manager:
 
	  
 	  
 	  
 
	  
 	  
 	 Coca-Cola Bottling Co. Consolidated
 2900 Rexford Road
 Charlotte, NC
28211
 Attention:  Chief Financial Officer
 Telecopy Number:  (704) 551-4451
 
	  
 	  
 	  
 

  
 
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 	 With a copy to:
 
	  
 	  
 	  
 
	  
 	  
 	 Witt, Gaither & Whitaker
 1100 American National Bank Building
 Chattanooga, TN
37401
 Attention:  Ralph M. Killebrew, Jr. 
 Telecopy Number:  (615) 266-4138
 
	  
 	  
 	  
 
	  
 	 (b)
 	 If to SAC:
 
	  
 	  
 	  
 
	  
 	  
 	 South Atlantic Canners, Inc.
 601 Cousar Street
 Bishopville, South Carolina
29010
 Attention:  Chairman, Board of Directors
 Telecopy Number:  (803) 484-5841
 
	  
 	  
 	  
 
	  
 	  
 	 With a copy to:
 
	  
 	  
 	  
 
	  
 	  
 	 McDermott, Will & Emery
 1200 18th Street, N.W.
 Washington, D.C.
20036-2506
 Attention:  J. Gary McDavid
 Telecopy Number:  (202) 778-8335
 

 16.02  Nonwaiver of Default. Any failure by either party at any time or from time to time to enforce and require the strict keeping and performance of any of the
terms and conditions of this Agreement shall not constitute a waiver of any such terms and conditions at any future time and shall not permit such party from insisting on the strict keeping and performance of such terms and conditions at any later
time.
 16.03  Interpretation. Should the provisions of this Agreement
require judicial or arbitral interpretation, it is agreed that the judicial or arbitral body interpreting or construing the same shall not apply the assumption that the terms hereof shall be more strictly construed against one party by reason of the
rule of construction that an instrument is to be construed more strictly against the party which itself or through its agents prepared the same, it being agreed that the agents of both parties have participated in the preparation herein
equally.
 16.04  Partial Invalidity. If any portion of this Agreement is
held invalid, illegal or unenforceable and such invalidity, illegality, or unenforceability shall not have a material adverse effect with respect to the transactions contemplated herein taken as a whole, such determination shall not impair the
enforceability of the remaining terms and provisions contained herein. In such event, this Agreement shall be construed and interpreted as if such invalid, illegal or unenforceable terms were limited to the extent whereby such terms would be valid,
legal and enforceable. If such limitation is not possible, this Agreement shall be construed and interpreted as if such invalid,
  
 
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  illegal or unenforceable terms were severed and not included herein.
 16.05   Amendment or Rescission. This Agreement shall not be modified or rescinded except by a written instrument setting forth such modification or rescission
and signed by the parties hereto.
 16.06   Duplicate Originals. For the
convenience of the parties hereto, this Agreement may be executed in two counterparts, and each such counterpart shall be deemed to be an original instrument and together constitute one and the same Agreement.
 16.07   Captions. The captions or headings of the Sections and other subdivisions hereof are
inserted only as a matter of convenience or for reference and shall have no effect on the meaning of the provisions hereof.
 16.08   Entirety of Agreement. This Agreement constitute the entire agreement between the parties hereto with respect to the subject matter hereof, and there are no agreements,
understandings, covenants, conditions or undertaking, oral or written, expressed or implied, concerning such subject matter that are not merged herein.
 16.09   Plurals, Etc. As used herein or in any document which incorporates the terms hereof:
 (a)       the plural form of the noun shall include the singular and the singular shall include the plural, unless the context requires
otherwise;
 (b)      each of the masculine, neuter and feminine forms of any pronoun
shall include all forms unless the context otherwise requires; and
 (c)       words
of inclusion shall not be construed as terms of limitation, so that references to included matters shall be regarded as non-exclusive, non-characterizing illustrations.
  
 
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  IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed on its behalf by its duly
authorized representative as the date first written above.
  

	  
 	  
 	  
 	 MANAGER:
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	 Coca-Cola Bottling Co. Consolidated
 
	  
 	  
 	 
 
 
 	  
 	 By: 
 	 
 /s/ DAVID V. SINGER
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Its:
 	 Vice President & Chief Financial Officer
 

  

	  
 	  
 	  
 	 SAC:
 
	  
 	  
 	  
 	 South Atlantic Canners, Inc.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 
 
 
 	  
 	 By: 
 	 
 /s/ Illegible
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Its:
 	 Chairman of the Board
 

  
 
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