Document:

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                                                                    EXHIBIT 10.2

                           SALE AND PURCHASE AGREEMENT

THIS AGREEMENT is made on 20th November 1997.

BETWEEN:

(1)  THE PERSONS whose names and addresses are set out in column 1 of Schedule 1
     ("the Vendors").

(2)  COTT UK LIMITED (Company No:2836071) whose registered office is at 5
     Princes Gate, London, SW7 1QJ ("the Purchaser").

(3)  COTT CORPORATION a corporation incorporated under the laws of Canada under
     company number 010776-0 having its principal place of business at 207
     Queen's Quay West, Suite 800, Toronto, Ontario, Canada M5J 1A7 ("the
     Parent").

IT IS HEREBY AGREED as follows:

1.   INTERPRETATION

1.1  In this Agreement, unless the context otherwise requires, the following
     words and expressions shall bear the following meanings:

     "`A' SHARES"                       means the twenty five thousand (25,000)
                                        issued "A" Ordinary Shares of 10 pence
                                        each in the capital of the Company fully
                                        paid or credited as fully paid.

     "ADJUSTED NET ASSETS"              means the amount at the Completion Date
                                        by which the fixed and current assets of
                                        the Group Companies as shown in the
                                        Completion Balance Sheet exceeds the
                                        aggregate of the liabilities (being the
                                        actual, contingent and prospective
                                        liabilities so far as they can be
                                        quantified whether current or not, as
                                        shown therein but excluding the Existing
                                        Group Loan Stock) as agreed or
                                        determined pursuant to Clause 5 of this
                                        Agreement.

     "APPROPRIATE MANNER"               means as agreed by the parties,
                                        negotiating in good faith either in
                                        person or through their nominated
                                        advisors or, in default of such
                                        agreement within 20 Business Days of
                                        commencement of such negotiations, as
                                        determined by an Expert nominated at any
                                        time thereafter on the request of the
                                        Vendors or the Purchaser (as the case
                                        may be) and in accordance with Clause
                                        16.

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     "ASSOCIATE"                        means in respect of any person ("the
                                        first person") any person which is a
                                        connected person (as defined in Section
                                        839 ICTA) of the first person, or which
                                        is an associated company of the first
                                        person within the meaning of Section 416
                                        ICTA but as if in sub-section (2) of
                                        that Section there was substituted for
                                        the words "the greater part" wherever
                                        they appear the words "twenty five per
                                        cent or more".

     "`B' SHARES"                       means the two hundred and twenty one
                                        thousand, four hundred and sixty nine
                                        (221,469) issued "B" Ordinary Shares of
                                        10 pence each in the capital of the
                                        Company, fully paid or credited as fully
                                        paid.

     "BUSINESS DAY"                     means any day other than Saturdays,
                                        Sundays and bank holidays during which
                                        clearing banks are open for business in
                                        the City of London.

     "CA  1985"                         means the Companies Act 1985.

     "CA  1989"                         means the Companies Act 1989.

     "COMPANIES ACTS"                   means CA 1985 and CA 1989 and the former
                                        Companies Acts (within the meaning of
                                        Section 735(1) CA 1985).

     "COMPANY"                          means Hero Drinks Group (UK) Limited
                                        brief details of which are set out in
                                        Part 1 of Schedule 2.

     "COMPANY INTELLECTUAL
     PROPERTY RIGHTS"                   means all Intellectual Property Rights
                                        (whether or not registered or
                                        registerable), which are used in the
                                        carrying on of the business of the
                                        Company in the manner in which it is
                                        carried on as at the date of this
                                        Agreement, other than the Registered
                                        Company Intellectual Property Rights and
                                        any intellectual property rights
                                        licensed to the Company by Hero or
                                        otherwise owned by Hero.

     "COMPLETION"                       means completion of the sale and
                                        purchase of the Shares in accordance
                                        with Clause 7.

     "COMPLETION BALANCE SHEET"         means the balance sheet of the Company
                                        as at the close of business on the
                                        Completion Date to be prepared in
                                        accordance with Clause 5.

     "COMPLETION DATE"                  means the date hereof.

     "`C' SHARES"                       means the seven hundred and fifty-three
                                        thousand, five hundred and thirty-one
                                        (753,531) issued "C" Ordinary Shares of
                                        10 pence each in the capital of the
                                        Company fully paid or credited as fully
                                        paid.

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     "CONSIDERATION"                    means the consideration payable by the
                                        Purchaser for the Shares representing
                                        the aggregate of the Initial
                                        Consideration and the Further
                                        Consideration (subject to any adjustment
                                        provided for in this Agreement).

     "CRYSTAL DRINKS"                   means Crystal Drinks Limited (Company No
                                        2186825).

     "DISCLOSURE LETTER"                means the letter of even date herewith
                                        in the Agreed Form from the Vendors to
                                        the Purchaser disclosing exceptions to
                                        the Warranties.

     "DISCLOSED DOCUMENTS"              means the documents referred to in the
                                        list of documents in the Agreed Form
                                        annexed to the Disclosure Letter.

     "EBIT"                             has the meaning provided in paragraph 5
                                        of Schedule 3.

     "ENVIRONMENT" and "POLLUTION
     OF THE ENVIRONMENT"                have the meanings attributed to them by
                                        s.1 of the Environmental Protection Act
                                        1990.

     "ENVIRONMENTAL LAW"                means all laws, regulations, codes of
                                        practice, circulars, guidance notes
                                        (statutory or otherwise) and the like
                                        from time to time (whether in the United
                                        Kingdom or elsewhere) concerning the
                                        protection of human health or the
                                        environment or the conditions of the
                                        work place or the generation,
                                        transportation, storage, treatment or
                                        disposal of any hazardous material,
                                        including, for the avoidance of doubt,
                                        the Contaminated Land Regime under Part
                                        IIA Environmental Protection Act 1990
                                        and guidance pursuant thereto.

     "EXISTING GROUP LOAN STOCK"        the Loan Stock in the nominal amount of
                                        (pound)29,600,000 owing from the Company
                                        to Renshaw Scott Limited, constituted by
                                        a loan stock instrument dated 19
                                        November 1997.

     "EXPERT"                           means an independent firm of chartered
                                        accountants agreed upon by the Vendors
                                        and the Purchaser or, failing such
                                        agreement within 14 days of request by
                                        any party to this Agreement nominated by
                                        the Institute of Chartered Accountants
                                        in England and Wales.

     "FA"                               means Finance Act.

     "THE FINAL SALARY SCHEME"          means the Hero Drinks Group Retirement
                                        and Death Benefits Scheme established by
                                        a preliminary trust deed dated 24 March
                                        1972.

     "FURTHER CONSIDERATION"            means the further consideration payable
                                        for the Shares as defined in paragraph 1
                                        of Schedule 3.

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     "GROUP COMPANIES"                  means the Company and the companies,
                                        brief details of which are set out in
                                        Schedule 2 and "Group Company" means any
                                        one of such companies.

     "GROUP PERSONAL PENSION PLAN"      means each of the personal pension
                                        policies effected with National
                                        Provident to which the Company
                                        contributes in relation to employees of
                                        the Company collectively known as the
                                        Hero Drinks Group (UK) Limited Group
                                        Personal Pension Plan.

     "HAZARDOUS MATERIAL"               means any natural or artificial
                                        substance (whether in solid or liquid
                                        form or in the form of a gas or vapour
                                        and whether alone or in combination with
                                        any other substance) capable of causing
                                        harm to man or any other living organism
                                        supported by the environment, or
                                        damaging the environment or public
                                        health or welfare including but not
                                        limited to any controlled, special,
                                        hazardous, toxic or dangerous waste.

     "HERO"                             means Hero brief details of which are
                                        set out in Schedule 1.

     "HOLDING COMPANY"                  means a holding company as defined in
                                        Section 736 CA 1985 (as supplemented by
                                        Section 736A CA 1985).

     "ICTA"                             means the Income and Corporation Taxes
                                        Act 1988.

     "INITIAL CONSIDERATION"            means the initial consideration amount
                                        to be paid to the Vendors or into the
                                        Retention Account on Completion by or on
                                        behalf of the Purchaser in respect of
                                        the purchase of the Shares (being a
                                        payment on account of the Consideration
                                        in the sum of (pound)17,400,000
                                        (seventeen million, four hundred
                                        thousand pounds)), such payment to be
                                        satisfied in the manner specified in
                                        Clause 4.2.

     "3I LOAN"                          means loans totalling in aggregate
                                        (pound)1,494,000 formerly owed to 3i plc
                                        by the Company which loans have been
                                        repaid by the Company prior to the date
                                        of this Agreement.

     "3I PENALTY"                       means the amount of any penalty imposed
                                        on the Company by 3i plc on account of
                                        the early repayment of the 3i loan.

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     "INTELLECTUAL PROPERTY RIGHTS"     means all patents, trade marks, service
                                        marks, registered designs, utility
                                        models, design rights, copyright
                                        (including copyright in computer
                                        software), semi-conductor topography
                                        rights, inventions, trade secrets and
                                        other confidential information,
                                        know-how, business or trade names and
                                        all other intellectual and industrial
                                        property and rights of a similar or
                                        corresponding nature in any part of the
                                        world, whether registered or not or
                                        capable of registration or not and
                                        including the right to apply for and all
                                        applications for any of the foregoing
                                        rights and the right to sue for past
                                        infringements of any of the foregoing
                                        rights.

     "INTELLECTUAL PROPERTY LICENCE"    means the licence to be entered into at
                                        Completion between Hero (1) and the
                                        Purchaser (2) relating to the use of
                                        certain trade marks owned by Hero in the
                                        Agreed Form.

     "LAST ACCOUNTS"                    means the audited balance sheet of the
                                        Company as at the Last Accounts Date and
                                        the audited profit and loss account of
                                        the Company made up to the Last Accounts
                                        Date and (in each case) the auditor's
                                        and the directors' reports and notes
                                        thereon.

     "LAST ACCOUNTS DATE"               means 31 December 1996.

     "MANAGEMENT ACCOUNTS"              means the unaudited balance sheet and
                                        profit and loss account of the Company
                                        for the 10 month period ended 31 October
                                        1997.

     "NET ASSET THRESHOLD"              means the sum of (pound)37,896,000
                                        (thirty seven million eight hundred and
                                        ninety six thousand pounds) less the
                                        amount of the 3i Penalty.

     "NEW COTT"                         the combined group of companies
                                        comprising (i) the Purchaser (ii)
                                        Crystal Drinks and (iii) the Group
                                        Companies together representing all the
                                        trading activities of the Purchaser's
                                        Group in the United Kingdom following
                                        Completion.

     "PENSION SCHEMES"                  means the Final Salary Scheme and the
                                        Group Personal Pension Plan.

     "PHI SCHEME"                       means the permanent health insurance
                                        scheme insured with Sun Life of Canada
                                        under policy number 74297-GPH.

     "PLANNING ACTS"                    means the Town and Country Planning Act
                                        1990, the Planning (Listed Buildings and
                                        Conservation Areas) Act 1990, the
                                        Planning (Consequential Provisions) Act
                                        1990, the Planning (Hazardous
                                        Substances) Act 1990 and the Planning
                                        (Compensation) Act 1991, and any other
                                        statute or subordinate legislation
                                        relating to town and country planning.

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     "PRE-COMPLETION DIVIDEND"          means the dividend of (pound)4,800,000
                                        (four million eight hundred thousand
                                        pounds) paid by the Company prior to the
                                        date of this Agreement.

     "PROPERTIES"                       means the Properties of the Group
                                        Companies briefly described in Part 1 of
                                        Schedule 6 (and for the purpose of the
                                        Warranties relating to environmental
                                        matters includes all plant, equipment,
                                        machinery, storage vessels, pipes,
                                        cables and associated apparatus present
                                        at, upon, in or underneath the
                                        Properties).

     "PURCHASER'S ACCOUNTANTS"          means Coopers & Lybrand of 1 Embankment
                                        Place, London, WC2N 6NN.

     "PURCHASER'S GROUP"                means the Purchaser, its holding
                                        companies and the subsidiaries and the
                                        subsidiary undertakings from time to
                                        time of such holding companies, all of
                                        them, and each of them as the context
                                        admits.

     "PURCHASER'S SOLICITORS"           means Hammond Suddards, of 2 Park Lane,
                                        Leeds, West Yorkshire, LS3 1ES.

     "REGISTERED COMPANY
     INTELLECTUAL PROPERTY
     RIGHTS"                            means those registered Intellectual
                                        Property Rights and applications for
                                        registered Intellectual Property Rights
                                        listed in Schedule 10.

     "REORGANISATION"                   means the reorganisation of New Cott
                                        involving (a) the transfer of the export
                                        business of the Purchaser to Cott Europe
                                        Trading Limited (b) the transfer of the
                                        business, assets and liabilities of the
                                        Company to the Purchaser (c) the grant
                                        of a long lease of the fixed assets of
                                        Crystal Drinks to the Purchaser
                                        comprising its premises, plant and
                                        machinery and industrial property
                                        rights, together with an option in
                                        favour of the Purchaser to purchase
                                        certain of such assets, and (d) the
                                        transfer of the stock and work in
                                        progress of Crystal Drinks to the
                                        Purchaser.

     "THE RETENTION"                    means the sum of (pound)1,900,000 (one
                                        million nine hundred thousand pounds) to
                                        be retained by the Purchaser out of the
                                        Initial Consideration and to be dealt
                                        with in accordance with Clause 4.4.

     "THE RETENTION ACCOUNT"            means an interest bearing account in the
                                        joint names of the Purchaser's
                                        Solicitors and the Vendors' Solicitors
                                        with Lloyds Bank PLC of 6 Park Row,
                                        Leeds, West Yorkshire.

     "THE RETENTION DATE"               means the date which is seven (7) days
                                        after the date of agreement or
                                        determination of the Adjusted Net Assets
                                        pursuant to the terms of this Agreement.

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     "SECURITY INTEREST"                means any mortgage, charge, assignment
                                        or assignation by way of security,
                                        guarantee, indemnity, debenture,
                                        hypothecation, pledge, declaration of
                                        trust, lien, right of set off or
                                        combination of accounts, or other
                                        interest in the nature of security
                                        whatsoever, howsoever created or
                                        arising.

     "SPECIFIC DISCLOSED DOCUMENTS"     means the Disclosed Documents which are
                                        referred to in the text of the
                                        Disclosure Letter other than solely by
                                        operation of paragraphs 3.2, 3.3 or 3.5
                                        of the Disclosure Letter.

     "THE SHARES"                       means the "A" Shares, the "B" Shares and
                                        the "C" Shares to be sold by the Vendors
                                        in the numbers set out opposite their
                                        respective names in column 2 of Schedule
                                        1.

     "SUBSIDIARY"                       means a subsidiary as defined in Section
                                        736 CA 1985 (as supplemented by Section
                                        736A CA 1985).

     "TARGET EARNINGS"                  has the meaning provided in paragraph 4
                                        of Schedule 3.

     "TAXATION"                         has the meaning provided the Tax Deed
                                        and "Tax" shall be construed
                                        accordingly.

     "TAXATION AUTHORITY"               has the meaning provided in the Tax
                                        Deed.

     "TAX DEED"                         means the Deed in the form set out in
                                        Schedule 5.

     "TAXATION STATUTES"                includes statutes (and all regulations
                                        and arrangements whatsoever made
                                        thereunder) whether of the United
                                        Kingdom or elsewhere, enacted before the
                                        date of this Agreement, providing for or
                                        imposing any Taxation.

     "TAXATION WARRANTIES"              means the Warranties contained in
                                        paragraph 3 of Schedule 4.

     "TCGA"                             means the Taxation of Chargeable Gains
                                        Act 1992.

     "THE VENDORS' ACCOUNTANTS"         means Coopers & Lybrand of Cumberland
                                        House, 35 Park Row, Nottingham, NG1 6FY.

     "VENDORS' GROUP"                   means the Vendors, any holding company
                                        of either of the Vendors and the
                                        subsidiaries and subsidiary undertakings
                                        (from time to time of such holding
                                        companies, all of them and each of them
                                        as the context admits), other than the
                                        Group Companies.

     "THE VENDORS' SOLICITORS"          means Ashurst Morris Crisp of Broadwalk
                                        House, 5 Solicitors Appold Street,
                                        London, EC2A 2HA.

     "THE WARRANTIES"                   means the warranties set out in Schedule
                                        4.

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1.2      "UNDERTAKING", "SUBSIDIARY UNDERTAKING", "PARENT UNDERTAKING" and
         "PARTICIPATING INTEREST" each bear the meanings ascribed to them in CA
         1989.

1.3      References to any statute, or to any statutory provision, statutory
         instrument, order or regulation made thereunder, includes that statute,
         provision, instrument, order or regulation as amended, modified,
         consolidated, re-enacted, or replaced from time to time, whether before
         or after the date of this Agreement and also includes any previous
         statute, statutory provision, instrument, order or regulation, amended,
         modified, consolidated, or re-enacted by such statute, provision,
         instrument, order or regulation.

1.4      All references to a statutory provision shall be construed as including
         references to all statutory instruments or orders, regulations or other
         subordinate legislation made pursuant to that statutory provision.

1.5      Unless the context otherwise requires, references to the singular
         include the plural, references to any gender include all other genders,
         and references to "persons" shall include individuals, bodies
         corporate, unincorporated associations, professions, businesses and
         partnerships.

1.6      Clause headings are for information only and shall not affect the
         construction of this Agreement.

1.7      The Schedules to this Agreement shall for all purposes form part of
         this Agreement.

1.8      Each agreement, undertaking, covenant, and warranty by the Vendors
         shall be deemed for all purposes to be made or given jointly and
         severally.

1.9      References to the "Agreed Form" mean in the form agreed in writing
         between the Vendors' Solicitors and the Purchaser's Solicitors prior to
         signature of this Agreement.

2.       SALE AND PURCHASE

2.1      Subject to the terms and conditions of this Agreement, the Vendors
         shall sell and the Purchaser shall purchase the Shares, together with
         all accrued benefits and rights attaching or accruing to the Shares
         (including all dividends declared) on or after the date of this
         Agreement.

2.2      The Vendors jointly and severally covenant with the Purchaser as
         follows:

         2.2.1    that each of the Vendors has the right to sell and transfer
                  those Shares set out opposite its name in column 2 of Schedule
                  1 in accordance with the terms of this Agreement;

         2.2.2    that the Shares are sold free from any liens, charges and
                  encumbrances (whether monetary or not and including any lien
                  which the Vendors might otherwise have, whenever arising, for
                  unpaid amounts of Consideration payable under this

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                  Agreement in respect of the Shares) and from all other rights
                  exercisable by third parties.

3.       PRE-EMPTION RIGHTS WAIVER

         The Vendors waive all rights of pre-emption (if any) over the Shares to
which they may be entitled under the Articles of Association of the Company, or
otherwise, in relation to the sale and purchase of the Shares pursuant to this
Agreement.

4.       CONSIDERATION AND EXISTING GROUP LOAN STOCK

4.1      The Consideration for the Shares shall be determined and satisfied in
         accordance with the provisions of Clause 4 and Schedule 3 of this
         Agreement and shall be subject to adjustment in accordance with the
         provisions of Clause 5 and Schedule 3 of this Agreement.

4.2      On Completion the Purchaser will pay, on account of the Consideration,
         an amount equal to the Initial Consideration which will be satisfied:

         4.2.1    as to the sum of (pound)17,400,000 (seventeen million, four
                  hundred thousand pounds), less the amount of the Retention, by
                  payment in cash by the Purchaser at Completion; and

         4.2.2    as to the amount of the Retention, by payment in cash by the
                  Purchaser at Completion into the Retention Account.

4.3      The Vendors shall be entitled to the Initial Consideration in the
         amounts set opposite their names in column 4 of Schedule 1, such
         Initial Consideration to be apportioned pro rata between that part of
         the Consideration payable pursuant to Clause 4.2.1 and the Retention,
         and to the Further Consideration in the proportions set out in column 3
         of Schedule 1.

4.4      The provisions of this Clause 4.4 shall apply to the Retention:

         4.4.1    Subject to the provisions of Clause 4.4.2, in the event that
                  on the Retention Date the Adjusted Net Assets of the Group
                  Companies as agreed or determined pursuant to Clause 5 of this
                  Agreement shall be:

                  (a)      equal to or greater than the Net Asset Threshold,
                           there shall be paid on the Retention Date to the
                           Vendors' Solicitors the Retention;

                  (b)      less than the Net Asset Threshold, but the shortfall
                           is less than the Retention, the Purchaser shall be
                           entitled to be paid for its own use and benefit from
                           the Retention an amount equivalent to any such
                           shortfall below the Net Asset Threshold, and there
                           shall be paid on the Retention Date to the Vendors'
                           Solicitors any balance of the Retention; and

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                  (c)      less than the Net Asset Threshold, but the shortfall
                           is more than the amount of the Retention, the
                           Purchaser shall be entitled to be paid for its own
                           use the entire amount of the Retention in part
                           satisfaction of the obligations of the Vendors under
                           Clause 6.2, but without prejudice to the obligations
                           of the Vendors to indemnify the Purchaser for any
                           further shortfall in the amount of the Net Asset
                           Threshold pursuant to Clause 6.2.

         4.4.2    All payments of capital to be made pursuant to Clause 4.4.1
                  shall be made on the basis that a pro rata portion of all
                  interest earned on such amount in the Retention Account shall
                  also be made to the relevant payee. The Vendors and the
                  Purchaser shall instruct the Vendors' Solicitors and the
                  Purchaser's Solicitors to sign any withdrawal form or other
                  document to give effect to the terms of this Clause 4.4

4.5      On Completion the Vendors shall procure the transfer to the Purchaser
         or a company nominated by the Purchaser, of the benefit of the Existing
         Group Loan Stock in consideration for the payment of cash to Renshaw
         Scott Limited in the sum of (pound)29,600,000 (twenty nine million six
         hundred thousand pounds).

5.       COMPLETION BALANCE SHEET

5.1      The Purchaser shall procure that within thirty (30) days after the date
         of Completion, the Company and the Vendors' Accountants will prepare a
         draft Completion Balance Sheet and a draft statement of the Adjusted
         Net Assets of the Company and submit the same for approval to the
         Vendors, the Purchaser and the Purchaser's Accountants.

5.2      The Completion Balance Sheet shall be prepared:

         5.2.1    on the basis of the historical cost convention as modified by
                  the revaluation of certain fixed assets;

         5.2.2    using the specific accounting policies specified in Schedule
                  10 and (subject to the provisions of Schedule 10) generally
                  accepted United Kingdom accounting principles (including all
                  relevant Statements of Standard Accounting Practice issued by
                  the Accounting Standards Committee, Financial Reporting
                  Standards issued by the Accounting Standards Board, and any
                  applicable pronouncements of the Urgent Issues Task Force of
                  the Accounting Standard Board); and

         5.2.3    subject to the preceding provisions of this Clause 5.2, in a
                  manner consistent with the procedures and policies, bases and
                  methods of valuation adopted in the preparation of the Last
                  Accounts.

5.3      Within thirty (30) days of receipt by the Vendors, the Purchaser and
         the Purchaser's Accountants of the draft Completion Balance Sheet, the
         Purchaser and the Vendors will inform each other in writing whether or
         not in their opinion the draft Completion Balance Sheet complies with
         the requirements of this Clause 5 and whether they agree with the draft
         statement of Adjusted Net Assets and, if not, shall specify in writing,
         so far as they are then reasonably able so to do, the amount and nature
         of any item which they do not

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         accept. If both parties confirm in writing that they accept the draft
         Completion Balance Sheet and the draft statement of Adjusted Net
         Assets, or if both parties fail to inform the other party within thirty
         (30) days of receipt of the draft Completion Balance Sheet whether or
         not they accept that the draft Completion Balance Sheet complies with
         the requirements of this Clause 5, such draft shall be the Completion
         Balance Sheet, and the Adjusted Net Assets shall be determined by
         reference to it.

5.4      If either the Purchaser or the Vendors informs the other party, in
         accordance with Clause 5.3, that it does not accept that the draft
         Completion Balance Sheet and the draft statement of Adjusted Net Assets
         complies with the requirements of this Clause 5, the Purchaser and the
         Vendors will hold discussions in good faith with a view to agreeing the
         Completion Balance Sheet and the draft statement of Adjusted Net Assets
         and the amount of the draft Adjusted Net Assets. If such agreement is
         reached, and is confirmed in writing by the parties, it shall be final
         and binding on the parties but without prejudice to the Purchaser's
         right to claim under the Warranties, the Tax Deed, or otherwise in
         respect of any matter under this Agreement.

5.5      Any dispute about the Completion Balance Sheet or the draft statement
         of Adjusted Net Assets which remains unresolved sixty (60) days after
         receipt by the Vendors, the Purchaser and the Purchaser's Accountants
         of the draft Completion Balance Sheet shall (unless otherwise agreed in
         writing by the parties prior to the expiry of such period) be
         determined by an Expert.

5.6      In the event that no referral to an Expert is made, all costs incurred
         by the Vendors in reviewing and agreeing the Completion Balance Sheet,
         or the draft statement of Adjusted Net Assets, shall be borne by the
         Vendors and all such costs incurred by the Purchaser shall be borne by
         the Purchaser.

5.7      Each party will co-operate fully with the other and, if applicable,
         with the Expert appointed under Clause 5.5 (including giving all
         reasonable access to records, information, and to personnel) with a
         view to enabling the draft Completion Balance Sheet and the draft
         statement of Adjusted Net Assets to be prepared and subsequently
         discussed and, if applicable, with a view to enabling any Expert to
         make any determination required by Clause 5.5, and in particular the
         Purchaser shall procure that the Group Companies shall permit the
         Vendors and their advisers (and, if applicable, the Expert) to have
         access to, and (where reasonable) to take copies of any records or
         information belonging to the Company. The parties have procured a
         physical stock take of the stock of the Company prior to Completion
         which was attended by representatives of the Vendors and the Purchaser
         and the Vendors' Accountants and the Purchaser's Accountants.

5.8      The Vendors shall keep confidential any such records or information
         belonging to the Company and shall not make use of the same save for
         the purposes of this Clause 5, and shall not disclose the same to any
         other person firm or company (other than any Expert or any Taxation
         Authority to the extent required) except to the extent that such person
         firm or company needs to know such information for the purposes of this
         Clause 5 and then

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         only upon terms that such person firm or company is bound by the terms
         of this Clause 5.8.

6.       ADJUSTED NET ASSETS

6.1      It is hereby agreed between the Vendors and the Purchaser that if the
         Adjusted Net Assets as shown by the Completion Balance Sheet as agreed
         or determined pursuant to Clause 5 are less than the Net Asset
         Threshold, then the Vendors shall be jointly and severally liable to
         pay to the Purchaser (pound)1 (one pound) for every (pound)1 (one
         pound) of such shortfall, together with, where such amount exceeds the
         amount of the Retention, interest on the amount of such excess at the
         rate of 2 per cent above the Base Rate of Lloyd's Bank plc from time to
         time and, where such amount is equal to or less than the amount of the
         Retention, interest at the rate payable in respect of the sum in the
         Retention Account from time to time in each case from the Completion
         Date to the date the amount of any such shortfall falls due for payment
         under Clause 6.2, and any such payment shall be treated as a pro rata
         reduction of the Initial Consideration.

6.2      The Vendors jointly and severally undertake to the Purchaser that if,
         and to the extent that, their obligations under Clause 6.1 are not
         satisfied by the release to the Purchaser of all or part of the
         Retention pursuant to Clause 4.4, then the Vendors shall pay the amount
         of the shortfall in Adjusted Net Assets referred to in Clause 6.1 (less
         the amount of the Retention) to the Purchaser in cash within seven (7)
         days after the Retention Date, and failing payment in full within such
         period of seven (7) days the amount of such shortfall shall be
         capitalised and aggregated with the interest accrued under Clause 6.1
         (if any) and such total amount shall bear interest from the Retention
         Date until the date of actual payment at the rate of four (4) per cent
         per annum above the base rate of Lloyds Bank plc from time to time
         calculated on a daily basis.

7.       COMPLETION

7.1      Completion shall take place at the London offices of the Purchaser's
         Solicitors immediately after the signing of this Agreement when the
         events set out in Clauses 7.2 to 7.7 shall occur.

7.2      At Completion the Vendors shall deliver to the Purchaser's Solicitors:

         7.2.1    duly completed and executed transfers of the Shares in favour
                  of the Purchaser or as it directs together with a power of
                  attorney from each Vendor in the agreed form enabling the
                  Purchaser to vote the Shares pending its registration as
                  shareholder;

         7.2.2    the certificates for the Shares;

         7.2.3    duly completed and signed transfers in favour of the Purchaser
                  (or as it may direct) of all shares of the Group Companies
                  (other than the Company) not registered in the name of the
                  Company and/or any other Group Company together with the
                  relative share certificates;

<PAGE>   13

         7.2.4    the Tax Deed duly executed by the Vendors;

         7.2.5    the resignations of each of the directors and the secretary of
                  each Group Company from their respective offices in each Group
                  Company, with a written acknowledgement under seal expressed
                  to be subject to English Law from each of them in such form as
                  the Purchaser requires that he has no claim against any Group
                  Company on any grounds whatsoever in respect of their
                  positions as directors and secretary;

         7.2.6    a letter in the Agreed Form from the existing auditors of the
                  Company confirming that had they resigned at Completion they
                  would have had no outstanding claims of any kind against the
                  Company and confirming that had they so resigned there would
                  have been no circumstances connected with their ceasing to
                  hold office which they consider should be brought to the
                  attention of the members or creditors of the Company;

         7.2.7    evidence satisfactory to the Purchaser that all charges,
                  debentures and other Security Interests and all guarantees
                  affecting each Group Company (including without limitation
                  Security Interests in favour of 3i plc) have been discharged
                  in full; and

         7.2.8    a letter of release in Agreed Form duly executed by Hero and
                  Renshaw Scott Limited for itself and as duly authorised agent
                  for each of its Associates confirming that with effect from
                  Completion no sums are owed by any Group Company to Hero or
                  any of its Associates on any account whatsoever except in
                  relation to monies owing to the Vendors or any of their
                  Associates in relation to inter company trading in the
                  ordinary course of business.

7.3      At Completion the following items in Clauses 7.3.1 to 7.3.8 and 7.3.10
         shall be delivered or made available to the Purchaser by the Vendors,
         and the Purchaser shall procure the delivery of the items in 7.3.9 and
         7.3.11:

         7.3.1    the Certificate of Incorporation (and, where relevant, on
                  Change of Name) of each Group Company (other than copies of
                  the Certificate of Incorporation of the Company in respect of
                  which constructive delivery shall be given);

         7.3.2    the minute books of each Group Company duly made up to
                  Completion;

         7.3.3    the register of members and other statutory registers of each
                  Group Company duly made up to Completion;

         7.3.4    the common seal of the Company and constructive delivery shall
                  be given of the common seals of all other Group Companies;

         7.3.5    all unissued share certificates of each Group Company;

         7.3.6    the title deeds relating to each of the Properties together
                  with the statutory declaration in relation to the property at
                  Sawley;

<PAGE>   14

         7.3.7    constructive delivery of all books, accounts and documents of
                  record and all other documents in the possession or control of
                  any of the Vendors in connection with each Group Company all
                  complete and up to date;

         7.3.8    all bank statements of all bank accounts of each Group Company
                  as at a date not more than three Business Days prior to
                  Completion;

         7.3.9    new bank mandates to be given by each Group Company;

         7.3.10   constructive delivery of all the current cheque books, paying
                  in books and unused cheques of each Group Company; and

         7.3.11   a written special resolution of the Company in the Agreed Form
                  (i) effecting changes to its memorandum of association so as
                  to confer, inter alia, an express power to give financial
                  assistance (ii) approving certain transactions for the purpose
                  of Chapter VI CA 1985 and (iii) changing the name of the
                  Company to exclude reference to the word "Hero".

7.4      At Completion the Vendors shall and shall procure that their respective
         Associates shall pay all monies then owing by them to each Group
         Company, including, for the avoidance of doubt, all management charges
         (save for monies owing in relation to inter company trading in the
         ordinary course of business) whether due for payment or not and that
         all guarantees, indemnities or other obligation given by each Group
         Company for or on behalf of the Vendors or their Associates are
         cancelled without liability on the part of each Group Company.

7.5      On Completion the Vendors and the Purchaser shall procure that the
         Intellectual Property Licence is entered into.

7.6      At Completion the Vendors shall deliver to the Purchaser a duly
         executed instrument of transfer of the Existing Group Loan Stock
         together with the relevant stock certificate.

7.7      At Completion a Board Meeting of each Group Company shall be duly
         convened and held at which, with effect from Completion:

         7.7.1    the transfers referred to in Clauses 7.2.1 and 7.2.3 (as the
                  case may be) shall (subject to stamping) be registered;

         7.7.2    such persons as the Purchaser may nominate shall be appointed
                  as additional directors and as the secretary of each Group
                  Company and the resignations referred to in Clause 7.2.5 shall
                  be submitted and accepted;

         7.7.3    all authorities to the bankers of each Group Company relating
                  to bank accounts shall be revoked and new authorities to such
                  persons as the Purchaser may nominate shall be given to
                  operate the same; and

         7.7.4    the registered offices of each Group Company shall be changed
                  to such address as the Purchaser shall stipulate.

<PAGE>   15

7.8      Upon completion of the matters specified in Clauses 7.2 to 7.7:

         7.8.1    the Purchaser will by telegraphic transfer (1) pay the sum
                  referred to in Clause 4.5 to Renshaw Scott Limited and (ii)
                  pay the sum referred to in Clause 4.2.1 and the sum of
                  (pound)9013.70 to the Vendors' Solicitors (whose receipt shall
                  be an absolute discharge to the Purchaser); and

         7.8.2    the Purchaser will pay the amount of the Retention by
                  telegraphic transfer into the Retention Account.

7.9      The Purchaser may in its absolute discretion waive any requirement
         contained in Clauses 7.2 to 7.7 inclusive but shall not be obliged to
         complete the purchase of any of the Shares unless the purchase of all
         the Shares is completed in accordance with such Clauses and this
         Agreement.

8.       WARRANTIES

8.1      The Vendors to the extent and subject as set out in this Clause 8,
         warrant to the Purchaser that the Warranties are, and at Completion
         will be, true and accurate in all respects.

8.2      Each of the Warranties (other than those referred to in paragraph 1 of
         Schedule 7 in respect of which no qualification is accepted except as
         expressly set out therein) is given subject to the matters fairly
         disclosed in the Disclosure Letter or the Disclosed Documents but none
         of the Warranties is otherwise subject to any qualification whatever
         other than as expressly set out in Schedule 7. No letter, document or
         other communication shall be deemed to constitute a disclosure for the
         purposes of the Warranties unless the contents of the same are fairly
         disclosed in the Disclosure Letter or the Disclosed Documents.

8.3      Each Warranty in respect of "the Company" shall be deemed to be a
         Warranty of the Vendors given in respect of the Company and each other
         Group Company and (unless the context or subject matter otherwise
         requires) the expression "the Company" in Schedule 4 shall be construed
         accordingly.

8.4      Save in respect of matters related to the Environment or Environmental
         Law, in relation to which only Warranty 8.3 shall apply, each of the
         Warranties is without prejudice to any other Warranty and, except where
         expressly stated, no Clause contained in this Agreement governs or
         limits the extent or application of any other Clause and the Warranties
         shall not in any respect be extinguished or affected by Completion.

8.5      Save as expressly provided in Schedule 7, the rights and remedies of
         the Purchaser in respect of any breach of the Warranties shall not be
         affected by completion of the purchase of the Shares, by any
         investigation made by or on behalf of the Purchaser into the affairs of
         any Group Company, by any failure to exercise or delay in exercising
         any right or remedy, or by any other event or matter whatsoever, except
         in circumstances where a specific written waiver has been duly signed
         by the Purchaser relating to such breach.

<PAGE>   16

8.6      None of the information supplied by or on behalf of any Group Company
         or of its professional advisers prior to the date of this Agreement to
         any of the Vendors or their directors, employees, agents,
         representatives or advisers in connection with the Warranties or the
         contents of the Disclosure Letter, or otherwise in relation to the
         business or affairs of any Group Company, shall be deemed a
         representation, warranty or guarantee of its accuracy by the relevant
         Group Company to the Vendors and shall not constitute a defence to any
         claim by the Purchaser under the Warranties or under the Tax Deed, and
         the Vendors waive any and all claims which they might otherwise have
         against any Group Company and their respective officers employees and
         advisers.

8.7      Notwithstanding any rule of law or equity to the contrary, any release,
         waiver or compromise or any other arrangement of any kind whatsoever to
         which the Purchaser may agree or effect in relation to one of the
         Vendors in connection with this Agreement or the Tax Deed, and in
         particular, but without limitation, in connection with any of the
         Warranties, shall not affect the rights and remedies of the Purchaser
         as regards any other of the Vendors.

8.8      Each of the Vendors undertakes, in relation to any Warranty which
         refers to the knowledge, information, belief or awareness of a Vendor
         or any similar expression, that such Vendor has made, due and careful
         enquiry into the subject matter of that Warranty (including where
         applicable, of David Monk, Robert Winterflood, Robert Lamb, William
         Taylor, John Wood or Paul Pallant but not otherwise of any officers or
         employees of the Company) and each of them acknowledges that the
         knowledge, information, belief or awareness of one of the Vendors shall
         be attributable to the others of them.

8.9      The provisions of Schedule 7 shall have effect to limit the liability
         of the Vendors under the Warranties.

8.10     The Purchaser acknowledges that the Vendors have entered into this
         Agreement in reliance upon the warranties contained in Schedule 12 Part
         1 to the extent that the Further Consideration is in part dependent
         upon the financial performance of New Cott and accordingly, warrants to
         each of the Vendors individually in the terms of Schedule 12 Part 1
         ("the Purchaser's Warranties").

8.11     Each of the Purchaser's Warranties is without prejudice to any of the
         other warranties in such Schedule and the Purchaser's Warranties shall
         not in any respect be extinguished or affected by Completion.

8.12     Subject to the provisions of Schedule 12 Part II, the rights and
         remedies of the Vendors in respect of any breach of the Purchaser's
         Warranties shall not be affected by any failure to exercise or delay in
         exercising any right or remedy.

9.       RESTRICTIONS ON THE VENDORS

9.1      In this Clause:

<PAGE>   17

         "BUSINESS"                 means all and any trades or other commercial
                                    activities of the Company which as at the
                                    Completion Date the Company shall carry on
                                    with a view to profit or which the Company
                                    shall as at the Completion Date have
                                    determined to carry on with a view to profit
                                    in the immediate or foreseeable future;

         "CONFIDENTIAL BUSINESS
         INFORMATION"               means all or any information relating to:

                                    (i)      the business methods, corporate
                                             plans, management systems,
                                             finances, new business
                                             opportunities or development
                                             projects of the Company;

                                    (ii)     the marketing or sales of any past
                                             or present or future product or
                                             service of the Company; or

                                    any trade secrets or other information
                                    relating to the provision of any product or
                                    service of the Company to which the Company
                                    attaches confidentiality or in respect of
                                    which it holds an obligation of
                                    confidentiality to any third party;

         "CUSTOMER"                 means any person who or which shall at the
                                    date of Completion be in negotiation with
                                    the Company for the provision of Restricted
                                    Services or to whom the Company has provided
                                    Restricted Services during the period of two
                                    (2) years prior to the date of Completion;

         "MATERIAL INTEREST"        means:

                                    (i)      the holding of any position as
                                             director, officer, employee,
                                             consultant, partner, principal or
                                             agent;

                                    (ii)     the direct or indirect control or
                                             ownership (whether jointly or
                                             alone) of any shares or debentures
                                             or any voting rights attached to
                                             them; or

                                    the direct or indirect provision of any
                                    financial assistance or support.

         "PURCHASER'S GROUP"        means the Purchaser and each of its
                                    Subsidiaries;

         "RESTRICTED AREA"          means England, Wales, Scotland, Northern
                                    Ireland, the Republic of Ireland, the
                                    Channel Isles and the Isle of

<PAGE>   18

                                    Man;

         "RESTRICTED SERVICES"      means the manufacture and/or distribution of
                                    carbonated soft drinks; alcoholic soft
                                    drinks and bottled or packaged flavoured
                                    water; the operation of vending machines and
                                    products for injection and blow moulding
                                    equipment, and the manufacture and/or sale
                                    of plastic moulded parts and containers;

         and covenants given in respect of "the Company" shall be deemed to be
         given separately in respect of the Company and each other Group Company
         and (unless the context or subject matter otherwise requires) the
         expression "the Company" in this Clause 9 shall be construed
         accordingly.

9.2      Each of the Vendors hereby covenants with the Purchaser that without
         the prior written consent of the Purchaser:

         9.2.1    it will not for a period of five (5) years after the date of
                  Completion hold any Material Interest in any business (other
                  than the Purchaser or the Company or any company which may
                  acquire the Purchaser or the Company) which provides
                  Restricted Services in competition with the Business in the
                  Restricted Area;

         9.2.2    it will not for a period of five (5) years after the date of
                  Completion hold any Material Interest in any person, firm or
                  company carrying on business in the Restricted Area which
                  requires or might reasonably be expected by the Company or,
                  following the Reorganisation, the Purchaser; to require it to
                  disclose or make use of any Confidential Business Information
                  in order properly to discharge its duties or to further the
                  interest of such person, firm or company;

         9.2.3    it will not at any time after the date of Completion disclose
                  or permit there to be disclosed (save as authorised by the
                  Purchaser or required by law), any Confidential Business
                  Information, nor will it at any time after Completion
                  otherwise make use of any Confidential Business Information
                  for its own benefit, or for the benefit of others, or in any
                  way to the detriment of the Company or, following the
                  Reorganisation, the Purchaser;

         9.2.4    it will not for a period of two (2) years after Completion
                  solicit or entice away or seek to entice away any person who
                  is, and was immediately prior to the date of Completion,
                  employed by the Company in a senior capacity provided that
                  this Clause 9.2.4 shall not apply to persons who leave the
                  employment of the Company of their own volition, no such
                  solicitation or enticement having taken place;

         9.2.5    it will not for a period of five (5) years after the date of
                  Completion within the Restricted Area and in respect of
                  Restricted Services directly or indirectly:

                  (a)      solicit the custom of, or orders from; or

<PAGE>   19

                  (b)      accept orders from;

                  any person who at any time during the two (2) years
                  immediately preceding Completion was a client or customer of
                  the Company in respect of Restricted Services;

         9.2.6    it will not for a period of five (5) years after the date of
                  Completion interfere with or seek to interfere with the
                  continuance of supplies to the Company (or the terms relating
                  to such supplies) from any suppliers who have been supplying
                  components, materials or services to the Company at any time
                  during the two (2) years immediately preceding Completion; or

         9.2.7    if it shall have obtained trade secrets or other confidential
                  information belonging to any third party under an agreement
                  which contained restrictions on disclosure, it will not at any
                  time infringe such restrictions.

9.3      Nothing in Clause 9.2 shall prevent the Vendors or any of their
         Subsidiaries from carrying on anywhere in the world any business (other
         than any business which provides Restricted Services in competition
         with the Business in the Restricted Area) carried on by them (i) at the
         date of Completion or (ii) or at any time during the period of one year
         prior to Completion.

9.4      Subject to the terms of Clause 9.5, there shall not be a breach of
         Clause 9.2, if either of the Vendors or their Subsidiaries acquires the
         whole or any part of the share capital or business of a company or
         group of companies (the "Acquired Business") which carries on the
         Restricted Services in the Restricted Area if the Restricted Services
         in the Restricted Area comprise less than ten (10) per cent of the
         turnover of the Acquired Business at the date of completion of such
         acquisition but in such event the Vendors shall:

         9.4.1    use all reasonable endeavours to dispose of that part of the
                  Acquired Business which so competes within six months of the
                  date of completion of such acquisition to an unconnected third
                  party; and

         9.4.2    shall in any event complete any such disposal within twelve
                  months of the date of such acquisition to an unconnected third
                  party.

9.5      Notwithstanding the terms of Clause 9.4, the Vendors or their
         Subsidiaries shall be at liberty to acquire an Acquired Business on or
         after the fourth anniversary of Completion which carries on the
         Restricted Services in the Restricted Area where the Restricted
         Services in the Restricted Area comprise less than ten (10) per cent of
         the turnover of the Acquired Business at the date of completion of such
         acquisition in which event the provisions of Clause 9.4 shall not
         apply.

9.6      The parties agree that the restrictions contained in Clause 9.2.3 shall
         not apply if and to the extent that the Confidential Business
         Information concerned has ceased to be confidential or come into the
         public domain (other than as a result of breach of any obligation of
         confidence under this Agreement by the Vendors), nor if the Vendors are

<PAGE>   20

         required to disclose the Confidential Business Information by any
         applicable law, government order, regulation or court.

9.7      Each Vendor shall procure that all companies and businesses directly or
         indirectly owned or controlled by such Vendor shall be bound by and
         observe the provisions of this Clause as if they were parties
         covenanting with the Purchaser.

9.8      Each Vendor acknowledges that the Purchaser is accepting the benefit of
         the covenants contained in this Clause both on its own behalf and on
         behalf of its Subsidiaries with the intention that the Purchaser may
         claim against any or all of the Vendors on behalf of any such
         Subsidiary for loss sustained by that Subsidiary as a result of any
         breach of the covenants contained in this Clause.

9.9      Nothing in this Clause 9 shall preclude any Vendor from being the owner
         for investment purposes only of not more than three (3) per cent of the
         equity share capital of any company listed on the Official Lists of the
         London Stock Exchange or the Irish Stock Exchange or the Alternative
         Investment Market of the London Stock Exchange or the Developing
         Companies Market of the Irish Stock Exchange.

9.10     The restrictions contained in this Clause 9 are considered reasonable
         by the Vendors in all respects but if any of those restrictions shall
         be held to be void in the circumstances where it would be valid if some
         part were deleted the parties agree that such restrictions shall apply
         with such deletion as may be necessary to make it valid and effective.

9.11     The provisions of Clauses 9.2.1 to 9.2.7 (inclusive) are separate and
         severable and shall be enforceable accordingly.

9.12     The parties acknowledge that pursuant to the Reorganisation the
         business, assets and liabilities of the Company will be transferred to
         the Purchaser immediately after Completion and the Vendors acknowledge
         that such transfer shall not operate to, nor shall be construed so as
         to prejudice the enforceability of the provisions of this Clause 9.

10.      POST COMPLETION PROVISIONS

         With effect from Completion, and save as otherwise agreed or provided
in this Agreement, all arrangements made by the Vendors or any of their
Associates relating to the provision of management, administration, computer
services, insurance, personnel, purchasing, accounting, legal or similar
services in relation to each Group Company (in so far as they have been provided
to date) shall cease without further liability on the part of any party (save to
the extent that any accrued liabilities are provided for in the Completion
Balance Sheet) but without prejudice to any rights of the Purchaser under the
Warranties or the Tax Deed.

11.      POST COMPLETION UNDERTAKINGS

11.1     For the purposes of this Clause 11, the expression the "RESTRICTED
         PERIOD" shall mean (i) the period commencing on the Completion Date and
         ending on 31 January 2003 or (ii)

<PAGE>   21

         the date upon which the obligations of the Purchaser in relation to
         payment of the Further Consideration are satisfied in full (whichever
         is the earlier).

11.2     The Parent acknowledges the interest of the Vendors in New Cott earning
         the profits which it is fairly able to do, calculated in accordance
         with the terms of Schedule 3 during the Restricted Period; and
         undertakes by exercise of its rights by virtue of its shareholding in,
         and by means of any representation on the board of directors of, the
         Purchaser and any other member of the Purchaser's Group to procure (so
         far as it is properly able to procure) that during the Restricted
         Period:

         11.2.1   each member of New Cott will act in the best interests of
                  their respective shareholders and will take all reasonable and
                  appropriate steps (consistent with the proper and prudent
                  management and operation of the business affairs of each
                  member of New Cott) to maintain and develop their respective
                  businesses and to further the reputation and commercial
                  interests of each member of New Cott;

         11.2.2   None of the members of New Cott shall, during the Restricted
                  Period, enter into any scheme, transaction, agreement or
                  arrangement (i) which has no proper commercial purpose and
                  which might reasonably be regarded as designed to prejudice,
                  manipulate or otherwise adversely affect the Vendors'
                  entitlement to any Further Consideration or (ii) which might
                  reasonably be regarded as (aa) calculated materially to damage
                  the reputation or best commercial interests of New Cott taken
                  as a whole and (bb) likely to adversely affect the payment of
                  the Further Consideration.

         11.2.3   There shall be no disposal by any direct or indirect holding
                  company of the Purchaser of all or a controlling interest in
                  (i) the share capital of any member of New Cott (a "Share
                  Sale") (but excluding for these purposes any disposal of any
                  share capital or any interest in any share capital in the
                  Parent) or (ii) the business or all or substantially all of
                  the assets of any member of New Cott (whether by a single
                  transaction or a series of connected transactions) (an "Asset
                  Sale") unless:

                  (a)      any such disposal is to another member of the
                           Purchaser's Group in which event the Parent shall
                           remain liable for the performance of its obligations
                           under this Clause 11; or

                  (b)      in the case of any proposed disposal to any person,
                           firm or company other than a member of the
                           Purchaser's Group (a "Third Party Disposal") the
                           Parent has satisfied itself (after due and careful
                           enquiry and mindful of the Vendors' interest in the
                           Further Consideration) that the ultimate holding
                           company (if any) of such acquirer, or the acquirer
                           (as the case may be) might reasonably be considered
                           to be capable of meeting the obligations to be
                           assumed by it pursuant to Clause 11.2.3(c) or
                           11.2.3(d) (as the case may require):

                  (c)      in the case of a Third Party Disposal, if such
                           disposal is a Share Sale, on completion of such Share
                           Sale the parties hereto and thereto shall enter

<PAGE>   22

                           into a deed of novation pursuant to which (aa) the
                           ultimate holding company of such acquirer or the
                           acquirer, as the case may be, shall covenant to
                           perform the obligations on the part of the Parent
                           contained in Clauses 11.1 to 11.2.4 inclusive,
                           mutatis mutandis, (but not otherwise) and (bb) the
                           Parent shall with effect from the date of such deed
                           of novation be released from any obligation under
                           this Agreement (but not in respect of any antecedent
                           breach which may have arisen prior to the date of
                           such deed of novation); or

                  (d)      in the case of a Third Party Disposal, if such
                           disposal is an Asset Sale, upon Completion of such
                           Asset Sale involving the assumption by the acquiring
                           party under the relevant Asset Sale agreement of the
                           obligations of the Purchaser in respect of the
                           Further Consideration, the parties hereto and thereto
                           shall enter into a deed of novation pursuant to which
                           (aa) the ultimate holding company of such acquirer or
                           the acquirer, as the case may be, shall covenant (i)
                           to perform the obligations on the part of the Parent
                           contained in Clauses 11.1 to 11.2.4 inclusive,
                           mutatis mutandis, (but not otherwise) and (ii) to
                           perform all the obligations on the part of the
                           Purchaser in relation to the Further Consideration
                           and in particular the terms of Schedule 3 and (bb)
                           the Parent shall with effect from the date of such
                           deed of novation be released from any obligation
                           under this Agreement (but not in respect of any
                           antecedent breach which may have arisen prior to the
                           date of such deed of novation).

         11.2.4   Save where advice is received from a licensed insolvency
                  practitioner that the directors of a member of New Cott are
                  under a duty to cease trading, no petition for the winding up
                  of any member of New Cott shall be presented by any such
                  member, nor shall any resolution for the voluntary winding up
                  of any member of New Cott be proposed, nor shall any member of
                  New Cott request or procure the appointment of any receiver or
                  administrative receiver over the whole or any part of the
                  assets or undertaking of any member of New Cott Provided that
                  no such consent shall be required for any such winding up as
                  part of a solvent amalgamation or reconstruction of any member
                  of New Cott involving the transfer of all or substantially all
                  the assets of New Cott to another member of the Purchaser's
                  Group together with the assumption of the obligations of the
                  Purchaser in relation to the Further Consideration.

         11.2.5   For as long as the relevant member of New Cott remains a
                  member of the Purchaser's Group, all transactions between that
                  member of New Cott and any other member of the Purchaser's
                  Group shall be carried out on an arms length basis and on
                  usual commercial terms and in particular (but without
                  limitation) no management charge or other similar charge or
                  expense shall be charged to that member of New Cott by any
                  other member of the Purchaser's Group save for arm's length
                  charges representing fair and proper value for goods or
                  services actually provided or supplied by a member of the
                  Purchaser's Group to the member of New Cott provided that
                  nothing in this Clause 11.2.5 shall require any member of New
                  Cott to purchase concentrates from BCB Beverages Limited or

<PAGE>   23

                  any other member of the Purchaser's Group on terms which are
                  substantially different from the terms which from time to time
                  exist in relation to such purchase arrangements between
                  members of the Purchaser's Group, the parties hereto
                  acknowledging that concentrate is an unusual product for which
                  market comparisons are difficult to obtain.

11.3     In the event that a member of New Cott shall, in the course of carrying
         on its business, require goods or services of a type or kind which any
         member of the Purchaser's Group is able to supply or provide, then the
         Parent shall at the request of such member of New Cott and for so long
         as the relevant member of New Cott remains a member of the Purchaser's
         Group, use its reasonable endeavours to procure that such goods or
         services are supplied to such member of New Cott on terms and
         conditions which are not materially different from those offered by the
         relevant member of the Purchaser's Group to any of its customers who
         may contract for the same on a comparable basis provided that nothing
         in this Clause 11.3 shall require the Parent to procure that such
         member of New Cott purchases concentrates from BCB Beverages Limited or
         any other member of the Purchaser's Group on terms which are
         substantially different from the terms which exist from time to time in
         relation to such arrangements, the parties hereto acknowledging that
         concentrate is an unusual product for which market comparisons are
         difficult to obtain.

11.4     In the event that any member of New Cott shall, in the course of
         carrying on its business, require goods or services of a type or kind
         which is the same as or similar to goods or services which are at the
         relevant time supplied or provided to any member of the Purchaser's
         Group by any third party (other than a member of the Purchaser's
         Group), then the Parent for so long as the relevant member of New Cott
         remains a member of the Purchaser's Group, shall at the request of such
         member of New Cott use its reasonable endeavours to procure that such
         goods or services are supplied or provided to such member of New Cott
         on terms which are not materially different taken as whole from those
         on which such goods or services are supplied or provided to the
         relevant member of the Purchaser's Group.

11.5     In the event that any member of the Purchaser's Group shall, in the
         course of carrying on its business, require goods or services of a type
         or kind which any member of New Cott is able to supply or provide, then
         the Parent for so long as the relevant member of New Cott remains a
         member of the Purchaser's Group, shall use reasonable endeavours to
         procure that such member shall obtain such goods or services from such
         member of New Cott provided always that such member of New Cott is able
         to supply or provide such goods or services on terms which, taken as a
         whole, are not materially different from those on which such goods or
         services can be obtained by such member from a third party.

11.6     The Purchaser shall use its reasonable endeavours to procure that:

         11.6.1   there is prepared and delivered to each of the Vendors within
                  45 days of the end of each quarter, management accounts for
                  that quarter;

<PAGE>   24

         11.6.2   there is delivered to each of the Vendors within three months
                  after the end of each financial period of New Cott, audited
                  financial statements of New Cott for the financial period then
                  ended;

         11.6.3   the Vendors are given such financial and other information and
                  documentation as they may reasonably and properly request in
                  order to enable the Vendors to monitor the performance of New
                  Cott.

11.7     Save as required by law or by the requirement of any recognised Stock
         Exchange or to the extent that the same comes into the public domain
         (other than through any act or omission of the Vendors or either of
         them) each of the Vendors shall keep confidential all such information
         as is supplied to it pursuant to Clause 11.6 and Schedule 3, shall not
         make use of the same save for the purpose of monitoring the performance
         of New Cott and in relation to the agreement or determination of the
         Further Consideration pursuant to Schedule 3, and shall not disclose
         the same to any other person, firm or company (including any
         professional adviser) except to the extent that such person, firm or
         company requires such information for the purposes set out in this
         Clause 11.7 and in such case only upon terms that such person, firm or
         company is bound by the terms of this Clause 11.7.

11.8     The parties agree that:

         11.8.1   the provisions of this Clause 11 shall not apply to the
                  Reorganisation;

         11.8.2   nothing in this Clause 11 shall prevent the Purchaser from
                  disposing of such of the business, assets and undertaking of
                  the Company as relate to the operation of the Company's
                  business from the premises at Sawley free from any obligation
                  under this Clause 11, but without prejudice to the provisions
                  of paragraph 4(c) of Schedule 3.

11.9     For the avoidance of doubt, nothing in this Agreement shall impose upon
         the Parent or any person to whom any obligations of the Parent are
         novated pursuant to this Clause 11, any obligation to provide any
         financial support (whether by way of guarantee, financial accommodation
         or investment) to any member of New Cott or otherwise.

11.10    Notwithstanding any other provision of this Agreement, the Purchaser
         shall be at liberty at any time during the Restricted Period to
         terminate any obligation in relation to the Further Consideration by
         payment to the Vendors of a sum representing the maximum amount of the
         Further Consideration which may become payable pursuant to Schedule 3
         namely (pound)20,500,000 (twenty million five hundred thousand pounds)
         together with any additional sums due under paragraph 10 of Schedule 3
         (less all payments of Further Consideration made up to the date of such
         payment) appropriately discounted for accelerated receipt and the
         amount of such discount shall be agreed or determined in the
         Appropriate Manner. Any such payment shall be made in full and final
         satisfaction of any obligation of the Purchaser under this Agreement in
         relation to the Further Consideration, and the Purchaser's Warranties
         and the provisions of Clause 11 (other than this Clause 11.10) shall
         cease to have effect.

<PAGE>   25

11.11    Any breach of the terms of Clauses 11.2 to 11.5 of this Clause 11 shall
         be compensated for by means of an appropriate adjustment under
         paragraph 5.2(e) of Schedule 3.

12.      SPECIFIC INDEMNITIES

12.1     The Vendors jointly and severally undertake to indemnify and keep
         indemnified the Purchaser and each Group Company from and against all
         losses, liabilities, reasonable costs, claims and expenses suffered or
         incurred by the Purchaser and/or any Group Company and arising directly
         from any of the matters described in Schedule 8 less any amount
         relating thereto which is provided for in the Completion Balance Sheet
         ("Claims").

12.2     In the event that a Claim is made, the Purchaser shall:

                  (a)      as soon as reasonably possible and in any event
                           within 60 days of facts coming to the knowledge of
                           the Purchaser or the relevant Group Company which
                           might reasonably be regarded as confirming that
                           liability will arise in relation to the relevant
                           Group Company or the Purchaser give written notice
                           thereof to the Vendors together with such details of
                           the subject matter of the Claim as is then in the
                           possession of the Purchaser or the relevant Group
                           Company and shall thereafter as soon as reasonably
                           possible provide to the Vendors such further
                           information relating to the Claim as from time to
                           time comes to its attention;

                  (b)      not make any admission of liability to, or agreement
                           or compromise with a person or persons in relation to
                           such Claim without the prior written consent of the
                           Vendors such consent not to be unreasonably withheld
                           or delayed; and

                  (c)      if the Vendors shall indemnify and secure the
                           Purchaser's Group to its reasonable satisfaction
                           against all Claims, take such action as the Vendors
                           may reasonably request to avoid, dispute, defend,
                           appeal, compromise or settle such Claims.

12.3     For the avoidance of doubt:

         12.3.1   save as provided in Clause 12.3.2 below, none of the
                  provisions of this Agreement which limit the liability of the
                  Vendors (other than paragraph 2.6 of Schedule 7) shall operate
                  to limit the liability of the Vendors under the terms of
                  Clause 12.1;

         12.3.2   any failure by the Purchaser to comply with the provisions of
                  Clause 12.2 shall only release the Vendors from any
                  obligations under Clause 12.1 if and to the extent that such
                  failure has given rise to a liability to make a payment or has
                  increased the amount of any payment under Clause 12.1 which,
                  but for such failure, would otherwise have been avoided or
                  mitigated; and

<PAGE>   26

         12.3.3   nothing in this Clause 12 shall oblige the Purchaser or the
                  Company to provide to the Vendors any paper, letter, record
                  note or document which is subject to legal privilege;

12.4     Any sum due to be paid under Clause 12 shall be paid within 7 (seven)
         days of settlement of a claim or its final determination by a court of
         competent jurisdiction and failing payment within such period the sum
         outstanding shall bear interest at the rate which represents 4 (four)
         per cent above the Base Rate of Lloyds Bank plc from the date of such
         settlement or final determination.

13.      GENERAL

13.1     Subject to Clause 13.2, this Agreement shall be binding upon and enure
         for the benefit of the successors in title of the parties but shall not
         be assignable by any party or its successors without the written
         consent of the other save that the Purchaser may without such consent
         assign all or any part of the benefit of this Agreement and of the Tax
         Deed to any other member of the Purchaser's Group provided that in the
         event that any such assignee ceases to be a member of the Purchaser's
         Group the Purchaser shall procure that any benefits so assigned shall
         be re-assigned back to the Purchaser forthwith.

13.2     Notwithstanding any other provisions in this Agreement or any of the
         other agreements entered into by the Vendors and the Purchaser under or
         in connection with this Agreement (all together the "Acquisition
         Agreements") the Purchaser:

                  (a)      may grant security over or assign by way of security
                           all or any of its rights under any of the Acquisition
                           Agreements (the "Rights") for the purposes of or in
                           connection with the financing (whether in whole or in
                           part) by the Purchaser of:

                           (i)      the acquisition contemplated by this
                                    Agreement; or

                           (ii)     any of its, or its Subsidiaries' working
                                    capital or other requirements; and

                  (b)      its liquidator or administrator, or any receiver or
                           other person or entity appointed to enforce of such
                           security may enter into any other assignments or
                           transfers of any of the Rights.

13.3     The Vendors shall execute and perform all such further acts, deeds or
         assurances as may be required for effectively vesting the Shares in the
         Purchaser. Each of the Vendors shall following Completion provide such
         information as to each Group Company, its business and its affairs as
         the Purchaser shall reasonably and by prior notice specify save that
         nothing in this Clause shall operate to enable the Purchaser to obtain
         access to any documents or information to which the Purchaser or the
         relevant Group Company would not otherwise be entitled to at law that
         would prejudice the defence by the Vendors of any

<PAGE>   27

         claims made by the Purchaser under the Warranties, the Tax Deed or the
         indemnities set out in Clause 12.

13.4     Any sums due to the Vendors pursuant to this Agreement may be paid to
         the Vendors' Solicitors, by way of transfer into the client account of
         the Vendors' Solicitors, whose receipt shall constitute a full
         discharge of the Purchaser's obligations to make such payment and the
         Purchaser shall not be concerned with the application of any such
         amount between the Vendors.

13.5     The provisions of this Agreement insofar as the same shall not have
         been performed at Completion shall remain in full force and effect
         notwithstanding Completion.

13.6     No delay or omission by the Purchaser in exercising any right, power or
         remedy shall operate as a waiver thereof, and any single or partial
         exercise thereof shall not preclude any other or further exercise
         thereof or the exercise of any right, power or other remedy. The rights
         and remedies of the Purchaser hereunder are cumulative and not
         exclusive of any right or remedy provided by law.

13.7     No party shall disclose the making of this Agreement nor its terms nor
         any other agreement referred to in this Agreement (except those matters
         set out in the press release in the Agreed Form) and each of the
         Vendors and the Purchaser shall procure that no member of the Vendor's
         Group or the Purchaser's Group respectively shall make any such
         disclosure without the prior consent of the other party unless
         disclosure is:

                  (a)      to any Taxation Authority;

                  (b)      to its professional advisors, financiers or bankers;

                  (c)      to any director, officer or other employee of any
                           member of the Vendor's Group or the Purchaser's Group
                           to the extent that it is necessary to make such
                           disclosure for the proper performance of their
                           duties;

                  (d)      required by law or by the rules of the Toronto Stock
                           Exchange, the Montreal Exchange, NASDAQ, the Basle
                           Stock Exchange, the Zurich Stock Exchange, the
                           Securities Commission of Canada or any other
                           regulatory body;

                  Provided that this Clause 13.7 does not apply to
                  announcements, communications or circulars made or sent by the
                  Purchaser or by any Group Company after Completion to
                  customers, clients or suppliers of any Group Company to the
                  extent that it informs them of the Purchaser's acquisition of
                  the Group Companies or to any announcements containing only
                  information which has become generally available.

13.8     No provision of this Agreement or of any agreement or arrangement of
         which this Agreement forms part, by virtue of which this Agreement or
         the agreement or arrangement of which it forms part is subject to
         registration under the Restrictive Trade Practices Act 1976 shall take
         effect until the day after the day on which particulars of this

<PAGE>   28

         Agreement, or the agreement or arrangement of which it forms part, (as
         the case may be) have been furnished to the Director General of Fair
         Trading pursuant to Section 24 of the said Act.

13.9     All expenses incurred by or on behalf of the parties, including all
         fees of agents, representatives, solicitors, accountants and actuaries
         employed by any of them in connection with the negotiation, preparation
         or execution of this Agreement shall be borne solely by the party who
         incurred the liability and there shall be no liability in respect of
         them upon any Group Company.

14.      RIGHTS OF SET-OFF

14.1     In the event that prior to the expiry of (i) the sixth anniversary of
         Completion in the case of the Tax Deed or the Tax Warranties or (ii)
         the second anniversary of Completion in the case of the Warranties
         (other than the Tax Warranties) ("the Set-Off Expiry Date") the
         Purchaser shall have given notice to the Vendors of a Claim or Claims
         under the Warranties, and/or the Tax Deed then the following provisions
         shall at the sole option of the Purchaser apply:

                  (a)      to the extent that any such Claim or Claims shall
                           have been settled (in accordance with Clause 14.2)
                           but shall not have been paid by or on behalf of the
                           Vendors prior to the Set-Off Expiry Date, the
                           Purchaser shall be entitled (but not obliged) to
                           treat its obligations hereunder to satisfy the
                           Further Consideration (if and to the extent not then
                           already satisfied) as being reduced pro tanto by the
                           amount to the extent settled of such Claim or Claims;

                  (b)      to the extent that any such Claim or Claims shall not
                           have been settled then on receipt by the Purchaser
                           prior to the Set-Off Expiry Date of an opinion of a
                           Queen's Counsel (instructed in accordance with Clause
                           14.4) to the effect that, on the balance of
                           probabilities, the Purchaser will recover in respect
                           of such Claim or Claims, and that the amount of any
                           such Claim or Claims is a reasonable estimate of the
                           amount which will be payable by the Vendors, the
                           Purchaser shall be entitled to set-off the amount
                           claimed by the Purchaser thereto against the Further
                           Consideration, provided that such amount is placed on
                           deposit in the joint names of the Purchaser and the
                           Vendors on the date on which, but for the exercise of
                           such right of set off, such amount would otherwise
                           have fallen due for payment to the Vendors, pending
                           settlement of the Claim. Following settlement of the
                           Claim if the amount upon deposit exceeds the amount
                           of the settlement, the excess together with the
                           interest accrued in the joint deposit account which
                           relates to such excess in respect of the period from
                           the Set-off Expiry Date down to the date of payment,
                           shall be released from the joint deposit account and
                           paid to the Vendors within seven days of such
                           settlement and the balance of any such interest shall
                           be released to the Purchaser.

<PAGE>   29

14.2     A Claim shall be regarded as settled for the purposes of Clause 14.1 if
         either:

                  (a)      the Vendors and the Purchaser (or their respective
                           solicitors) shall so agree in writing; or

                  (b)      a Court has awarded judgment in respect of the Claim
                           and no right of appeal lies in respect of such
                           judgment or the parties are debarred whether by
                           passage of time or otherwise from exercising any such
                           right of appeal.

14.3     For the avoidance of doubt nothing contained in Clause 14.2 shall
         prejudice the right of the Purchaser to make any Claim against the
         Vendors under the Warranties or the Tax Deed, nor shall any amount
         placed on deposit in accordance with Clause 14.1(b) be taken as
         limiting the amount of any lawful claim under the Warranties or the Tax
         Deed.

14.4     The selection of the Queen's Counsel for the purposes of Clause 14.1(b)
         shall be made by the Purchaser after agreement with the Vendors and
         failing agreement within fourteen days of notification by the Purchaser
         of its selection on the application of either the Purchaser or the
         Vendors by the Chairman of the Bar Council. The Queen's Counsel shall
         be instructed by the Purchaser's Solicitors. The Purchaser shall supply
         to the Vendors a copy of such instructions to Counsel and the Vendor
         shall have the right to make written representations to Counsel.

14.5     If the opinion of the Queen's Counsel is required by the Purchaser and
         such Queen's Counsel decides that on the balance of probabilities the
         Purchaser will recover in respect of the Claim or Claims, the costs of
         such Queen's Counsel shall be borne equally by the Purchaser and the
         Vendors. If the Queen's Counsel decides that on the balance of
         probabilities the Purchaser will not so recover, the costs of such
         Queen's Counsel shall be borne by the Purchaser.

14.6     The Purchaser shall in addition be entitled to set off against the
         Further Consideration the amount of any sum agreed or determined to be
         payable pursuant to (i) Clause 6.2 of this Agreement or (ii) Clause 12
         of this Agreement to the extent that any such sum still remains unpaid.

14.7     Other than as provided in Clauses 14.1 to 14.6 inclusive, all amounts
         paid by the Purchaser to the Vendors under this Agreement shall be paid
         by the Purchaser on the due date without regard to any right of set-off
         to which it would, but for this Clause 14, be entitled and except as
         set out in this Clause 14, the Purchaser hereby irrevocably waives any
         such right of set-off. For the avoidance of doubt nothing in this
         Clause 14 shall be taken to prohibit the Purchaser from exercising any
         right of counterclaim.

15.      PENSION ARRANGEMENTS

         Upon transfer of the employment of the employees of the Company to the
Purchaser pursuant to the Reorganisation, Hero agrees and declares that it will
render such assistance as it is able to provide in connection with the execution
by the trustees for the time being of the Final

<PAGE>   30

Salary Scheme of all such deeds and documents as the Purchaser may reasonably
require to substitute it as principal employer of such pension scheme in place
of the Company.

16.      EXPERTS

         Any Expert appointed pursuant to this Agreement shall act as expert not
as arbitrator and in the absence of manifest error his decisions (both as to the
manner in which his determination is to be made arid as to the subject matter of
its determination) shall be final and binding on the parties but without
prejudice to the Purchaser's right to claim under the Warranties, the Tax Deed
or otherwise in respect of any matter. The parties to this Agreement shall
provide any Expert with such documents in their possession and such information
as he may require. Any Expert shall be entitled to such costs and expenses as
are determined by him, acting in good faith, to be fair and appropriate which
shall be borne between the parties hereto in such proportions as he may
determine or, in default of such determination, equally between the Vendors and
the Purchaser.

17.      NOTICES

17.1     Any notice to be given hereunder shall be in writing and delivered by
         hand or by first class recorded delivery post or by facsimile letter
         addressed and sent to the party to be served (in the case of the
         Vendors) at the address given herein and (in the case of the Purchaser)
         at its registered office for the time being. Any notice to be given to
         the Parent shall be addressed to the Corporate Secretary.

17.2     Notice delivered by hand shall be deemed to have been served at the
         time of actual delivery.

17.3     Notice sent by post shall be deemed to have been served at the expiry
         of 5 Business Days after posting.

17.4     Notices sent by facsimile shall be deemed to have been served on
         production of a transmission report from the machine which sent the
         facsimile indicating that the facsimile was sent in its entirety to the
         facsimile number of the recipient. Provided that in the event that such
         facsimile is received after 4pm (local time) on any Business Day it
         shall be deemed served on the Business Day following such date of
         transmission.

18.      PROPER LAW

18.1     This Agreement shall be governed by, and construed in accordance with,
         English Law.

18.2     All of the parties irrevocably agree for the benefit of the other
         parties that the Courts of England are to have jurisdiction to hear and
         determine any suit, action or proceeding arising out of or in
         connection with this Agreement and, for that purpose, irrevocably
         submit to the jurisdiction of such Courts.

18.3     All of the parties irrevocably waive any objection which they may at
         any time have to the nomination of the Courts of England as the forum
         to hear and determine any suit, action

<PAGE>   31

         or proceedings arising out of or in connection with this Agreement and
         agrees that they shall not claim that any such Court is an inconvenient
         or inappropriate forum.

18.4     Each Vendor hereby irrevocably authorises and appoints the Vendors'
         Solicitors at their London office (or such other firm of solicitors at
         an office in England as it may by written notice to the Purchaser
         select) to accept service of all legal process arising out of or in
         connection with this Agreement and service on such person shall be
         deemed to be service on the relevant Vendor.

19.      ENTIRE AGREEMENT

19.1     The parties acknowledge and agree:

                  (a)      this Agreement together with any other documents
                           referred to in this Agreement (together the
                           "Transaction Documents") constitute the entire and
                           only agreement between the parties relating to the
                           subject matter of the Transaction Documents;

                  (b)      none of the parties have been induced to enter into
                           any Transaction Document in reliance upon, nor have
                           they been given, any warranty, representation,
                           statement, assurance, covenant, agreement,
                           undertaking, indemnity or commitment of any nature
                           whatsoever other than as are expressly set out in the
                           Transaction Documents and, to the extent that any
                           such party has been so induced such party
                           unconditionally and irrevocably waives any claims,
                           rights or remedies which any of them might otherwise
                           have had in relation thereto;

                  (c)      no party has any right to rescind or terminate any
                           Transaction Documents either for breach of contract
                           or for negligent or innocent misrepresentation or
                           otherwise;

                  (d)      (same as expressly provided herein) the rights and
                           remedies of each party shall be restricted to a claim
                           for damages or equitable remedies (other than
                           rescission).

         PROVIDED THAT the provisions of this Clause 19 shall not exclude any
         liability which any of the parties would otherwise have to any other
         party or any right which any of them may have to rescind this Agreement
         in respect of any statements made fraudulently by any of them prior to
         the execution of this Agreement or any rights which any of them may
         have in respect of fraudulent concealment or deliberate non disclosure.

19.2     This Agreement may be varied only by a document signed by each of the
         parties and expressly referring to this Agreement.

AS WITNESS the hands of the parties hereto or their duly authorised
representatives on the date shown on the first page.

<PAGE>   32

SIGNED by David Monk                        )          /s/  David Monk
AS ATTORNEY                                 )
AND ON BEHALF OF HERO                       )
in the presence of: )
Robert Ogilvy Watson
Solicitor                                              /s/  Robert Ogilvy Watson
5 Appard Street
London    EC2A 2HA

SIGNED by David Monk                        )          /s/  David Monk
AS ATTORNEY                                 )
AND ON BEHALF OF                            )
RENSHAW SCOTT                               )
LIMITED in the presence of:                 )
Robert Ogilvy Watson                        )
Solicitor                                   )          /s/  Robert Ogilvy Watson
5 Appard Street
London    EC2A 2HA

SIGNED by Brian Mackie for                  )          /s/  Brian Mackie
and on behalf of COTT UK                    )
LIMITED in presence of:                     )
Ian Greenfield
2 Park Lane                                            /s/  Ian Greenfield
Leeds, LS3 1ES

SIGNED by Simon Lester for                  )          /s/  Simon Lester
and on behalf of COTT UK                    )
LIMITED in presence of:                     )
Ian Greenfield
2 Park Lane                                            /s/  Ian Greenfield
Leeds, LS3 1ES<PAGE>   1

                                                                    EXHIBIT 10.3

December 21, 1998

Mr. Robert Anderson

Vice President, Proprietary Products

Wal-Mart Stores, Inc.

702 SW 8th Street

Bentonville, Arkansas

72716 - 0139

Dear Bob:

SUBJECT:          SUPPLY CONTRACT

This is our agreement (the "Agreement") concerning the supply of Products by
Cott to Wal-Mart.

1. TERM - THE TERM OF THIS AGREEMENT SHALL BE * [CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED] OR UNTIL TERMINATED BY MUTUAL AGREEMENT OF THE PARTIES OR
OTHERWISE IN ACCORDANCE WITH THE PROVISIONS OF THIS AGREEMENT ("TERM").

2. SCOPE -

(A) Cott will, throughout the Term, be the supplier of Products to Wal-Mart, but
Wal-Mart shall, subject to the terms and conditions of this Agreement, have the
right to source Products from other suppliers (provided that Wal-Mart shall not
produce any of the Products for itself). Subject to what is otherwise agreed by
the parties from time to time regarding forecasting and purchase order lead
times, Cott will supply Products as and when ordered by Wal-Mart. Some of the
Soft Drinks are produced from Wal-Mart Controlled Concentrates, and the balance
of the Soft Drinks are produced from concentrates supplied by Cott. However, if
Wal-Mart issues a termination notice pursuant to clause 6(d) below its new
supplier shall (to the extent that Wal-Mart is entitled to transfer portions of
its requirements for production of Products during the Notice Period, as
hereinafter defined) not be entitled to utilize Cott supplied concentrates.

(B) Except to the extent that any stores when acquired by Wal-Mart are
contractually obligated to purchase Soft Drinks from other suppliers, if
Wal-Mart wishes to introduce a new Soft Drink flavor or to change a Soft Drink
flavor being produced by Cott, Wal-Mart may do so and have such Soft Drink
produced by another manufacturer for the Program, so long as Wal-Mart shall have
first given Cott 30 days from receipt of written notice from Wal-Mart to
formulate a flavor, together with service, pricing and product quality,
acceptable to Wal-Mart, acting reasonably and in good faith (it being
acknowledged and agreed by Wal-Mart that service, pricing and product quality
which is consistent with that of the other equivalent Products then being
supplied by Cott under this Agreement shall be deemed to be acceptable to
Wal-Mart). If Cott is able to do so, Cott shall provide such Soft Drinks to
Wal-Mart in accordance with this Agreement. If Cott is unable to do so, Wal-Mart
shall be free to engage a third party to provide such Soft Drinks for the
Program.

<PAGE>   2

(c) Cott may supply Soft Drinks or other products to competitors of Wal-Mart,
including under other retailer brands. * [CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED] Cott will not supply any colas or clear sparkling flavored waters
with the same specifications and flavors as the Products to any other customers
in the USA ("Cott's Exclusivity Obligation"). All intellectual property rights
in all concentrates and formulations used by Cott in the production of the
Products are and shall remain the sole property of Cott.

(d) Cott will provide Wal-Mart with a letter from *  [CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED] by which *  [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED]
will agree to provide * [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED]

3. PRICING; TERMS; FORMATS -

(a) Pricing throughout the Term will be as agreed by Cott and Wal-Mart from time
to time.

(b) Prices are exclusive of Levies and Wal-Mart shall continue to be responsible
for, and shall pay, those Levies for which it is currently responsible as well
as any future Levies which are imposed on it by any applicable authority or
which are ultimately recoverable from consumers.

4. *  [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED]   Manufacturing Option -

(a) If Wal-Mart does not accept (i) a * [CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED] proposed by Cott at any time during the Term, or (ii) * [CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED] at any time during the Term, Wal-Mart will notify
Cott that it wishes [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED]. Wal-Mart shall
be deemed to have accepted any * [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED] to
which it does not object in writing within 30 days of being notified of the *
[CONFIDENTIAL TREATMENT HAS BEEN REQUESTED] and, in the absence of a *
[CONFIDENTIAL TREATMENT HAS BEEN REQUESTED] being proposed by Cott, Wal-Mart may
not notify Cott pursuant to clause 4(a)(ii) above more frequently than once in
any 12 month period.

(b) If Wal-Mart notifies Cott in accordance with either of clauses 4(a)(i) or
4(a)(ii), * [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED] will be asked to provide
Wal-Mart with * [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED] to cover the *
[CONFIDENTIAL TREATMENT HAS BEEN REQUESTED] and * [CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED] (other than * [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED]), plus
the * [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED]. If (i) the overall *
[CONFIDENTIAL TREATMENT HAS BEEN REQUESTED] proposed by the * [CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED] selected by Wal-Mart to * [CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED], after taking into account all relevant terms (and excluding
the * [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED]), is * [CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED], and (ii) the * [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED]
is able to * [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED], then Cott will (unless
it * [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED] 90 days after

<PAGE>   3

Wal-Mart notifies Cott of * [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED]) use
such * [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED] as its * [CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED] on terms and conditions for forecasting, ordering,
supply and payment which are reasonably acceptable to all parties.

(c) If pursuant to clause 4(b) Cott engages a * [CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED] as its * [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED], Cott will
continue to use its * [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED] for the *
[CONFIDENTIAL TREATMENT HAS BEEN REQUESTED] of the * [CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED], and will adjust its * [CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED] accordingly to reflect the * [CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED] of * [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED] and * [CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED] and * [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED]
charged by * [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED]. The price payable to
Cott for * [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED] will be $* [CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED] / 12 oz. equivalent case (subject to changes in -
[CONFIDENTIAL TREATMENT HAS BEEN REQUESTED] from time to time).

5. INTELLECTUAL PROPERTY - Wal-Mart will indemnify, defend and hold harmless
Cott from and against all claims, damages and costs (including reasonable
attorneys' fees), to the extent they result from any action alleging that
Wal-Mart's trademarks or trade dress used in connection with the Program
infringe such party's rights.

6. DEFAULT; TERMINATION -

(A) If either party commits a Material Breach of this Agreement which is not
rectified within 30 days after receipt of notice of the Material Breach, or if
the Material Breach is not capable of being rectified within such 30 day period,
if steps to rectify the Material Breach are not commenced within the 30 day
period and thereafter pursued to completion within an additional 30 day period:
(i) the other party may terminate this Agreement (without prejudice to its other
rights and remedies that may be available under this Agreement and under
applicable law), or (ii) in the case of a Material Breach by Cott, Wal-Mart may
by notice to Cott trigger the Third Party Manufacturing Option.

(b) Notwithstanding anything to the contrary contained in this Agreement, Cott
is not obligated to provide any * [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED] to
Wal-Mart (or to any * [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED] for the *
[CONFIDENTIAL TREATMENT HAS BEEN REQUESTED] of * [CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED]), other than pursuant to the * [CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED] Manufacturing Option, and Wal-Mart shall not use any concentrates
supplied by Cott (nor allow them to be used) for * [CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED] exept pursuant to the * [CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED] Manufacturing Option.

(C) If this Agreement is terminated by Cott pursuant to clause 6(a), Wal-Mart
shall reimburse Cott, for the Termination Costs.

<PAGE>   4

(d) In addition to its rights under Section 6(a) above, Wal-Mart may terminate
this Agreement at any time so long as it gives Cott * [CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED] years prior written notice (the "Notice Period") of its
intention to terminate. * [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED] At the end
of the Notice Period Wal-Mart shall reimburse Cott for the Termination Costs. It
is understood and agreed that Cott's obligations with respect to the *
[CONFIDENTIAL TREATMENT HAS BEEN REQUESTED] Manufacturing Option shall be of no
further force or effect upon the issuance by Wal-Mart of the termination notice
pursuant to this clause 6(d). Finally, Wal-Mart agrees that if it exercises its
termination right pursuant to this clause 6(d) Cott will (i) not be required to
produce any Products for Wal-Mart during the Notice Period using concentrates
other than those used by Cott prior to the issuance by Wal-Mart of the
termination notice and (ii) be relieved of Cott's Exclusivity Obligation 1.5
years after the issuance by Wal-Mart of the termination notice pursuant to this
clause 6(d).

7. FORCE MAJEURE -

(A) The performance by each party of its obligations shall be excused for so
long as and to the extent that such performance is prevented, hindered or
delayed by Force Majeure.

(B) If Cott is unable to supply Products either directly or through others due
to Force Majeure, Wal-Mart may trigger the Third Party Manufacturing Option for
the period of the Force Majeure (and Cott agrees to reimburse Wal-Mart for any
reasonable additional costs incurred by Wal-Mart to obtain such supplies of
Products during such period of Force Majeure).

8. GENERAL -

(A) This Agreement inures to the benefit of and is binding upon the parties
hereto and their respective successors and assigns. Wal-Mart acknowledges and
agrees that Cott may have any of the Soft Drinks produced by third party
co-packers.

(B) This Agreement, together with the Wal-Mart Vendor Agreement in effect from
time to time as agreed by the parties (which covers payment terms, insurance and
indemnification provisions), constitutes the entire agreement between the
parties with respect to the subject matter hereof. In the event of any conflict
or inconsistency between the terms of this Agreement and the Wal-Mart Vendor
Agreement or any Wal-Mart purchase order, the terms of this Agreement shall take
precedence. This Agreement may only be amended by a writing signed by both
parties.

(C) This Agreement is governed by and construed in accordance with the laws of
the State of Arkansas, without regard to the internal law of the State of
Arkansas regarding conflicts of laws. The parties mutually (i) consent and
submit to the jurisdiction of the federal and state courts for Benton County,
Arkansas, and agree that any action, suit or proceeding concerning this
Agreement shall be brought only in federal or state courts for Benton County,
Arkansas and (ii) acknowledge and agree that they will not raise, in connection
with any such suits, actions or proceedings brought in any federal or state
court for Benton County, Arkansas, any defense or objection based upon lack of
personal jurisdiction, improper venue, inconvenience of forum. Each party shall
bear its own costs in connection with any litigation, including without
limitation, its attorneys fees, without regard to the party that is the
prevailing party. The parties acknowledge that they have read and understand the
provisions of this paragraph and agree willingly with its terms.

<PAGE>   5

9. NOTICES - Any notices pursuant to this Agreement shall be given in writing
and sent by recognized national overnight courier for next business day delivery
or by pre-paid registered or certified mail, return receipt requested to the
addresses specified below (or to such other address of which notice is given).
Notices shall be deemed to have been received on the third business day after
the date of mailing or the next business day if sent by courier:

 If to Wal-Mart, at:                       If to Cott, at:
 -------------------                       ---------------

 Wal-Mart Stores, Inc.                     Cott Beverages USA, Inc.
 702 SW 8th Street                         1011 NW J Street, Suite D
 Bentonville, Arkansas 72716-0139          Bentonville, Arkansas 72712

 Attention: VP, Private Brands (Food)      Attention: VP/GM, Wal-Mart Team

                                           With a copy to:
                                           Cott - Legal Department
                                           800 - 207 Queen's Quay West
                                           Toronto, Ontario, Canada M5J 1A7

If the foregoing is in accordance with your understanding, please sign and date
the enclosed copy of this letter and return it to the undersigned within 2
weeks, whereupon this letter agreement shall constitute a binding agreement
between us in accordance with its terms.

Sincerely,

COTT BEVERAGES USA, INC.

BY:  /s/ Frank E. Weise III
   -----------------------------
NAME:    Frank E. Weise, III
TITLE:   Chief Executive Officer
Authorized Signing Officer

Acknowledged and agreed to by:

WAL-MART STORES, INC.

BY: /s/ Robert A. Anderson          Date: 12/22/98
   -----------------------                --------
NAME: ROBERT A. ANDERSON
TITLE:VP Private Brands
Authorized Signing Officer

<PAGE>   6

                                    GLOSSARY

"Cott" means Cott Beverages USA, Inc.

"Force Majeure" means any cause(s) beyond a party's reasonable control, which
cannot be overcome by reasonable diligence, including without limitation, war,
labor disputes, civil disorders, governmental acts, epidemics, quarantines,
embargoes, fires, earthquakes, storms, or acts of God. Force Majeure shall not
operate so as to enable Wal-Mart to delay making any payments which it is
otherwise obligated to make under this Agreement.

"Levies" means any and all present and future taxes, deposits and environmental
and recycling levies and charges (including without limitation the California
CRV and PRCC) which are imposed or charged in connection with the production,
sale and/or recycling of soft drinks or soft drink packaging.

"Material Breach" means (a) Cott's failure to procure the concentrates for the
Products in accordance with the agreed Product specifications; (b) Cott's
failure to maintain in stock service levels of at least 95% on average over any
three (3) calendar month period (i.e. February through April; May through July;
August through October; or November through January) of any year; (c) valid
damage claims caused by Cott which average more than 1% of total gross sales
over any three (3) calendar month period (i.e. February through April; May
through July; August through October; or November through January) of any year;
(d) valid product quality issues of a material nature caused by Cott in
contents, containers, packaging or otherwise, average more than 1% of shipments
over any three (3) calendar month period (i.e. February through April; May
through July; August through October; or November through January) of any year,
as identified by Wal-Mart quality assurance labs acting reasonably and in good
faith; and/or (e) a failure of either party to perform a material provision of
this Agreement, other than those provisions which are addressed in paragraphs
(a) through (d) of this definition.

"Products" means Soft Drinks which are intended for the Program.

"Program" means any retailer brand soft drink program operated by Wal-Mart in
its present and future USA stores, other than Sam's Clubs stores.

"Soft Drinks" means all non-alcoholic carbonated beverages and includes, without
limitation, clear sparkling flavored water beverages.

"Termination Costs" means the costs incurred by Cott for any unused raw and
packaging materials and full goods inventories intended to be used by or for
Wal-Mart, whether in the possession of Cott, its suppliers, co-packers or
otherwise, existing at the effective date of termination, up to a maximum of
three (3) months worth, in the case of raw and packaging materials, and three
(3) months worth, in the case of finished goods. The three (3) month ceiling
will be calculated on the basis of the average monthly case sales by Cott to
Wal-Mart over the immediately preceding twelve (12) month period for each of the
Products.

"* [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED] Manufacturing Option" means
the procedure described in clause 4 of the Agreement.

"Wal-Mart" means Wal-Mart Stores, Inc.

"Wal-Mart Controlled Concentrates" means concentrates used to produce those
Products which are identified with an asterisk on Exhibit "A".

<PAGE>   7

                                   EXHIBIT "A"

Product * [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED] supplied by Cott to
Wal-Mart

Carbonated Soft Drinks                   New Age Beverages
----------------------                   -----------------

Cola *                                   Black Cherry *
Diet Cola *                              White Grape *
CF Diet Cola *                           Kiwi Strawberry *
Dr Thunder *                             Peach *
Diet Dr Thunder *                        Raspberry *
Twist Up *                               Strawberry *
Diet Twist Up *                          Tropical *
Root Beer *                              Cranberry *
Mountain Lightning *                     Key Lime *
Grape *                                  Strawberry Banana *
Raspberry *                              Mango Peach *
Grapefruit *                             Blackberry Apple *
Orange *

*Indicates Wal-Mart Controlled Concentrates

* [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED]

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