Document:

PARTNERSHIP AGREEMENT

  Exhibit 10.7
 PARTNERSHIP
AGREEMENT
OF CAROLINA COCA-COLA BOTTLING PARTNERSHIP
 THIS PARTNERSHIP AGREEMENT made and entered into as of the 2nd
day of July, 1993, between Carolina Coca-Cola Bottling Investments, Inc., a Delaware corporation (“KO Sub”), Coca-Cola Ventures, Inc., a Delaware corporation (“Ventures”), Coca-Cola Bottling Co. Affiliated, Inc., a Delaware
corporation (“Affiliated”), Fayetteville Coca-Cola Bottling Company, a North Carolina corporation (“Fayetteville”), and Palmetto Bottling Company, a South Carolina corporation (“Palmetto”), for the formation of Carolina
Coca-Cola Bottling Partnership, a general partnership to be formed under the Uniform Partnership Act of the State of Delaware (the “Partnership”).
 W I T N E S S E T H:
 WHEREAS, KO Sub is a wholly owned subsidiary of The Coca-Cola Company, a Delaware corporation
(“KO”);
 WHEREAS, Ventures, Affiliated, Fayetteville and Palmetto are indirect, wholly owned subsidiaries of Coca-Cola Bottling Co. Consolidated
(“CCBCC”), a Delaware corporation;
 WHEREAS, KO owns certain bottling territories located in Virginia, North Carolina and South Carolina through its
wholly owned subsidiary, Carolina Coca-Cola Holding Company (“Carolina Holding”);
 WHEREAS, CCBCC operates certain bottling territories located in
North Carolina, South Carolina and Georgia owned by it directly or through its wholly owned subsidiary, Sunbelt Coca-Cola Bottling Company, Inc. (“Sunbelt”);
 WHEREAS, KO Sub, Affiliated, Fayetteville and Palmetto desire to form a general partnership under the laws of the State of Delaware to engage in the Business (as hereinafter defined) and to engage in such other
activities as may be determined from time to time by the parties in accordance with the terms of this Agreement;
 WHEREAS, immediately following the formation
of the Partnership, Affiliated and Fayetteville will transfer their entire Interest in the Partnership to Ventures, which (by its execution of this Agreement) assumes all of the rights and obligations of Affiliated and Fayetteville under this
Agreement;
 WHEREAS, Ventures and Palmetto (collectively referred to as “CCBCC Sub”) and KO Sub will thereafter continue as general partners of the
Partnership;
 
 

  NOW, THEREFORE, in consideration of the premises and of the mutual promises, obligations and agreements contained herein, the parties
hereto, intending to be legally bound, do hereby agree as follows:
 Section 1.      Definitions.
 1.1.     Defined Terms. As utilized in this Agreement, the capitalized terms shall have the meanings set forth in the DAA Agreement. “DAA Agreement” shall mean the Definition and Adjustment Agreement of even date herewith among the Partnership, KO,
CCBCC, KO Sub, Ventures, Sunbelt, Coastal, Eastern, Carolina Holding and certain other Affiliates of KO and CCBCC, which provides (among other things) for the adjustment of (i) the initial capital contributions to the Partnership described in
Section 7.1 and (ii) the purchase price paid by the Partnership and CCBC Wilmington under the Affiliated Purchase Agreement, the Coastal Purchase Agreement, the Fayetteville Purchase Agreement, the Goldsboro Purchase Agreement, the Palmetto Purchase
Agreement and the Wilmington Purchase Agreement.
 1.2      Other Terms. The following terms shall have the meanings set forth in the Section of this Agreement indicated below:
    

	 Defined Term
 	  
 	 Section
 	  
 
	  
 	  
 	  
 	  
 
	 Appraised Value
 	  
 	 18.3
 	  
 
	 Buy-Sell Notice
 	  
 	 17.2(a)
 	  
 
	 Capital Account
 	  
 	   7.3
 	  
 
	 CCBCC Portion
 	  
 	 20.3(a)
 	  
 
	 Deadlock
 	  
 	 17.1
 	  
 
	 Defaulting Partner
 	  
 	 18.1
 	  
 
	 Disclosing Party
 	  
 	 22.4
 	  
 
	 Dissolution Banker
 	  
 	 20.3(b)
 	  
 
	 Dissolving Event
 	  
 	 20.2
 	  
 
	 E&Y
 	  
 	 13.3
 	  
 
	 Initial Term
 	  
 	   5.1
 	  
 
	 Initiating Partner
 	  
 	 17.2(a)
 	  
 
	 KO Portion
 	  
 	 20.3(a)
 	  
 
	 Net Loss
 	  
 	   9.1
 	  
 
	 Net Profit
 	  
 	   9.1
 	  
 
	 Non-Defaulting Partner
 	  
 	 18.2
 	  
 
	 Notice of Partners Deadlock
 	  
 	 17.1
 	  
 
	 Notice of Final Deadlock
 	  
 	 17.1
 	  
 
	 Option Exercise Notice
 	  
 	 18.2
 	  
 
	 Proposed Value
 	  
 	 17.2(a)
 	  
 
	 PW
 	  
 	 18.3
 	  
 
	 Receiving Party
 	  
 	 22.3
 	  
 
	 Sale Notice
 	  
 	 16.2
 	  
 
	 Selling Notice
 	  
 	 16.2
 	  
 
	 
 Selling Partner	 	16.2	 
	 Tax Matters Partner
 	  
 	 13.2
 	  
 
	 
 Terminating Notice	 	5.1	 

 
  
 
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	 Terminating Partner
 	  
 	   5.1
 	  
 
	 Termination Notice
 	  
 	   5.1
 	  
 
	 Transfer
 	  
 	 16.1
 	  
 
	 Value Opinion
 	  
 	 18.3
 	  
 

 
 Section 2.      Formation of Partnership.
 The Partners do hereby agree to and do hereby form the Partnership pursuant to the provisions of the Act. Unless otherwise expressly provided in this Agreement, the rights and liabilities of the Partners shall be as
provided in the Act. To the extent that the provisions of this Agreement conflict with any provisions of the Act, the provisions of this Agreement shall control, to the extent permitted by law, and the conflicting provisions of the Act shall be
deemed waived to the maximum extent permitted by law.
 Section 3.      Name and
Principal Office.
 3.1.     Name. The name
of the Partnership shall be “Carolina Coca-Cola Bottling Partnership”. The Partners agree that the right to use such trademark and trade name shall be subject to the terms of the Bottling Agreements with KO to which the Partnership is a
party.
 3.2.     Principal Office. The principal office of the
Partnership shall be located at 1900 Rexford Road, Charlotte, North Carolina 28211, or at such other place as may be designated from time to time by the Executive Committee.
 3.3.     Title to Property. Title to all Partnership property shall be held in the name of the Partnership rather than in the
names of the Partners.
 Section 4.      Business of Partnership.
 4.1.     Business. The business of the Partnership shall
consist of (i) engaging in the Business in the Territory, and (ii) engaging in such other business activities as shall be authorized by the Executive Committee.
 4.2.     Competition. Any Partner, and any shareholder, officer, director, employee or Affiliate of any Partner, may engage in or possess an interest
in other business ventures of every nature and description, independently or with others, whether or not such ventures are competitive with the Partnership or otherwise, and neither the Partnership nor a Partner nor any shareholder, officer,
director, employee or Affiliate of such Partner shall have any right by virtue of this Agreement in or to such independent ventures or to the income or profits derived therefrom. The Partners acknowledge and agree that no Partner shall be in
violation of its obligations hereunder or in breach of any fiduciary duty to the Partnership if such Partner fails to present any business opportunity to the Partnership or fails or
 
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  refuses to approve any business venture of the Partnership so that such Partner may pursue such business venture independently of the Partnership. Nothing in
this Section 4.2 shall be construed to amend or affect any rights or obligations of CCBCC or its Affiliates and KO or its Affiliates, as the case may be, under any agreements between them whether currently in effect or hereafter executed.

Section 5.      Term of Partnership.
 The term of the Partnership shall begin as of the date hereof and shall continue until the twenty-fifth anniversary of this Agreement (the “Initial Term”), unless
earlier. terminated as provided in Section 20. No later than one year prior to the expiration of the Initial Term, any Partner (the “Terminating Partner”) may notify the other Partners in writing that it desires to terminate the
Partnership as of the expiration of the Initial Term (the “Termination Notice”). If none of the Partners delivers a Termination Notice within the applicable period, the term of the Partnership shall continue thereafter for successive
additional two-year terms which will renew automatically until any Partner gives a Termination Notice at least one year prior to the expiration of a term. If a Termination Notice is delivered, the Partnership shall be liquidated and its affairs
shall be wound up pursuant to Section 20.
 Section 6.      Partnership
Interests. Notwithstanding any adjustment in the Partners’ Capital Account balances, each partner’s Interest in the Partnership shall be as follows:
    

	 KO Sub
 	 50.00%
 
	 Affiliated
 	 10.26%
 
	 Fayetteville
 	 13.09%
 
	 Palmetto
 	 26.65%
 

 
 Upon the
transfer of the Interests held by Affiliated and Fayetteville to Ventures, Ventures’ Interest will be 23.35%.
 Section 7.      Capital.
 7.1.     Initial Capital Contributions.
 (a)       Simultaneously with the execution of this Agreement, KO Sub has contributed to the capital of the Partnership a promissory note in the amount of SEVENTY MILLION DOLLARS
($70,000,000).
 (b)       Simultaneously with the execution of this
Agreement:
 (i)        Palmetto has contributed to the
capital of the Partnership (A) a promissory note in the amount of TWENTY-ONE MILLION SEVEN HUNDRED FORTY-FIVE THOUSAND EIGHT HUNDRED
 
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  EIGHTY-FIVE DOLLARS ($21,745,885), and (B) the Palmetto Contributed Assets set forth on Schedule 7.1(b)-1 hereto;
 (ii)       Affiliated has contributed to the capital of the Partnership the
Affiliated Contributed Assets set forth on Schedule 7.1(b)-2 hereto; and
 (iii)     Fayetteville has contributed to the capital of the Partnership the Fayetteville Contributed Assets set forth on Schedule 7.1(b)-3 hereto.
 The Partners agree that the net value of the CCBCC Contributed Assets is $48,254,115, subject to adjustment as provided in the DAA Agreement.
 (c)       Affiliated, Fayetteville and Palmetto have executed and delivered to the Partnership instruments of transfer,
reasonably satisfactory in form and substance to KO and its counsel, in order to vest in the Partnership as of the date hereof good and valid title to the CCBCC Contributed Assets. From time to time after the date hereof, Affiliated, Fayetteville
and Palmetto shall promptly execute and deliver, or cause to be executed and delivered, to the Partnership such other instruments of transfer, powers of attorney and other documents, as may be requested by and in form and substance reasonably
satisfactory to the Partnership, KO and their respective counsel, in order to more effectively vest in the Partnership title to and possession of the CCBCC Contributed Assets in accordance with this Agreement.
 (d)       The Partnership shall be responsible for all sales and transfer taxes resulting from the
transfer of the CCBCC Contributed Assets.
 7.2.     Additional Capital
Contributions.
 (a)       Following the final determination
of the value of the CCBCC Contributed Assets pursuant to the DAA Agreement, CCBCC Sub shall make any additional capital contribution in cash as is required by the provisions of the DAA Agreement.
 (b)       Each Partner will be obligated to contribute additional cash or other property to the capital of the Partnership
at such times and in such increments as shall be determined by the Executive Committee.
 7.3.     Capital Accounts. A separate “Capital Account” shall be maintained for each Partner, and the amount of such Capital Account, as of any particular date, shall be the sum of the following amounts:
  (a)      The cumulative amount of cash that has been contributed to the capital of the Partnership by
such Partner as of such date; plus
 
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  (b)       The agreed upon net value (as of the date of
contribution) of any property (other than cash) that has been contributed to the capital of the Partnership by such Partner as of such date; plus
 (c)       The cumulative amount of the Partnership’s Net Profit that has been allocated to such Partner pursuant to Section 9.2 hereof,
minus
 (d)       The cumulative amount of the
Partnership’s Net Loss that has been allocated to such Partner pursuant to Section 9.2 hereof, and minus
 (e)       The cumulative amount of cash and the net fair market value (as of the date of distribution) of any property (other than cash) that has been distributed to such Partner by the
Partnership, except as provided in Section 20 hereof.
 The foregoing provisions and other provisions of this Agreement relating to the
maintenance of capital accounts are intended to comply with Regulation Section 1.704-1(b) and shall be interpreted and applied in a manner consistent with
such Regulations.
 7.4.     Interest on and Return of Capital. No
Partner shall be entitled to any interest on its Capital Account. Except as otherwise provided in Sections 10.1, 20.3 and 20.4 hereof, no Partner shall have the right to demand a return of all or any part of its initial or subsequent contributions
to the capital of the Partnership.
 Section 8.      Other
Transactions.
 8.1.     Bottler Transfers.   (a) Simultaneously with the execution of this Agreement, KO has caused (i) the sale to the Partnership of the Coastal Assets and the Goldsboro Assets and (ii) the sale to CCBC
Wilmington of 100% of the stock of the Wilmington Group Bottlers. Such sales have been consummated pursuant to the terms of the Coastal Purchase Agreement, the Goldsboro Purchase Agreement and the Wilmington Purchase Agreement.
 (b)       Simultaneously with the execution of this Agreement, CCBCC and certain of its Affiliates have
caused the sale to the Partnership of the CCBCC Purchased Assets. Such sales have been consummated pursuant to the terms of the Affiliated Purchase Agreement, the Fayetteville Purchase Agreement and the Palmetto Purchase Agreement. .
 (c)       Simultaneously with the execution of this Agreement, the Partnership has executed a
reimbursement agreement with CCBCC for the reimbursement to CCBCC for the payment of certain retiree medical and life expenses to former employees of CCBCC and its Affiliates.
 
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  (d)       Simultaneously with the execution hereof, Sunbelt
has entered into an Employee Assignment and Assumption Agreement with each of Coastal and Goldsboro pursuant to which Sunbelt will employ certain employees of Coastal and Goldsboro and will assume responsibility for payment of certain
employment-related liabilities of Coastal and Goldsboro as provided therein.
 8.2.     Management Agreement. Simultaneously with the execution of this Agreement, CCBCC, the Partnership and other parties have entered into the Management Agreement.
 8.3.     Bank Financing. The Partners and the Partnership will each use its best efforts to cause bank
financing for the Partnership in the amount of at least $215,000,000 to be completed as promptly as practicable following the execution of this Agreement.
 8.4.     Insurance. Simultaneously with the execution of this Agreement, KO Sub and CCBCC Sub have provided for the Partnership to be insured as
provided in the Management Agreement.
 Section 9.      Allocations of Net
Profit and Net Loss.
 9.1.     Definition of Net Profit and Net
Loss. For purposes of this Agreement, the Partnership’s “Net Profit” or “Net Loss”, as the case may be, for each fiscal year shall be an amount equal to the Partnership’s taxable income or loss
for such fiscal year as determined under Section 703(a) of the Code (for this purpose, all items of income, gain, loss or deduction required to be stated separately pursuant to Section 703(a)(1) of the Code shall be included in taxable income or
loss), except that such Net Profit or Net Loss shall be computed as if items of tax-exempt income and nondeductible, non-capital expenditures (under Sections 705(a)(1)(B) and 705(a)(2)(B) of the Code) realized and incurred by the Partnership during
such fiscal year were included in the computation of taxable income or loss.
 9.2.     Allocation of Net Profit and Net Loss. The Partnership’s Net Profit or Net Loss, as the case may be, for any fiscal year of the Partnership shall be allocated among the Partners in proportion to their respective
Interests.
 9.3.     Tax Allocations. In accordance with Section
704(c) of the Code any gain with respect to any property contributed to the capital of the Partnership shall, solely for tax purposes, be allocated among the Partners in a manner which takes into account all of the difference between the adjusted
basis and the fair market value (as determined pursuant to the DAA Agreement) of such contributed property at the time of contribution. In the case of any real property or bottling contracts that are contributed to the Partnership with an adjusted
tax basis that is less than the agreed fair market value of such property, tax depreciation and amortization must be allocated under the “Traditional Method” in
 
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  accordance with the principles of Proposed Regulation 1.704-3(b). Upon a sale or disposition of such contributed property an allocation of all of the tax
gain recognized by the Partnership shall be specially allocated to the contributing Partner to the extent of the difference between the property’s date of contribution adjusted tax basis and date of contribution fair market value that has not
previously been taken into account under the previous sentence. Upon the sale or other disposition of Section 1250 or Section 1245 recapture property, recapture generally shall be allocated to the Partners in proportion to the gain, if any,
allocated to the Partners. To the extent that gain is specially allocated to a Partner pursuant to this Section 9.3, however, any recapture shall be allocated to such Partner to the extent of such specially allocated gain and any remaining
recapture, if any, shall be allocated in proportion to the allocation of the remaining gain. Allocations pursuant to this Section 9.3 are solely for the purposes of federal, state and local taxes and shall not affect, or in any way be taken into
account in computing, any Partner’s Capital Account or share of net profit, net loss, other items or distributions pursuant to any provision of this Partnership Agreement.
 Section 10.    Distributions to Partners.
 10.1    Cash Flow.   The cash flow of the Partnership shall be distributed to the Partners in
proportion to their Interests in the Partnership at such times and in such amounts as the Executive Committee may determine or as provided in the DAA Agreement.
 10.2.   Distributions in Kind.       Distributions in kind of the property of the
Partnership, in liquidation or otherwise, shall be made only with the approval of the Executive Committee and only at a fair market value established by the Executive Committee. Prior to any such distribution in kind, the difference between such
agreed upon fair market value and the book value of such property shall be credited or charged, as appropriate, to the Partners’ Capital Accounts in proportion to their Interests in the Partnership. Upon the distribution of such property, such
agreed upon fair market value shall be charged to the Capital Account of the Partner or Partners receiving such distribution.
 Section 11.    Management of Partnership.
 11.1    Executive Committee.
 (a)       The Partnership shall be managed by the Executive Committee in accordance with this Agreement. The Executive Committee shall supervise the Partnership on behalf of the Partners as
provided herein.
 (b)       The Executive Committee shall consist of four members,
with two members being appointed by each of CCBCC Sub and KO Sub, and reasonably acceptable to the other party. The Partners agree to appoint to the Executive Committee individuals
 
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  who are professionally qualified, knowledgeable and experienced in the soft drink business. Each of CCBCC Sub and KO Sub may also appoint an unlimited number
of alternate members of the Executive Committee. Any alternate member appointed by a Partner may attend any meeting of the Executive Committee in the place of any member of the Executive Committee appointed by such Partner, and such alternate member
shall for all purposes (including quorum and voting requirements) be treated as a member of the Executive Committee with respect to such meeting.
 (c)       Each of CCBCC Sub and KO Sub may remove any member of the Executive Committee which it has so appointed and may appoint at any time a successor thereto. In
the event a member resigns, is removed or becomes unable to serve, the Partner which appointed such member shall within 15 days appoint a successor member of the Executive Committee. Each of CCBCC Sub and KO Sub shall appoint a Co-Chairman of the
Executive Committee from among the members appointed by it. If any subcommittees of the Executive Committee are established, each of CCBCC Sub and KO Sub shall have an equal representation among the members of such subcommittees.
 (d)       Actions requiring prior approval of the Executive Committee are as listed on Exhibit
11.1(d).
 (e)       Notwithstanding the approval requirements set forth on Exhibit
11.1(d) or any other provisions of this Agreement, the representatives of each Partner on the Executive Committee shall have the full and complete authority to act for and on behalf of the Partnership and the Subsidiaries with respect to any claims
made by the Partnership or its Subsidiaries against the other Partner or its Affiliates or any claims made by the other Partner or its Affiliates against the Partnership or any Subsidiary, including, without limitation, any claims by or against KO
with respect to the Bottling Agreements and any claims by or against CCBCC with respect to the Management Agreement. Such authority shall include, without limitation, the right to initiate, prosecute and defend any legal proceeding and to authorize
the expenditure of funds of the Partnership for attorneys fees and other expenses relating to any such claim.
 (f)       Notwithstanding anything herein to the contrary, in the event the General Manager, any Partner or any employee of the Partnership receives any notice of any investigation or
proceeding by any Governmental Entity affecting or in connection with the formation or conduct of the Partnership, such person shall promptly notify each of the Partners in the manner provided herein to permit the Partners to take such steps as may,
under the circumstances, be appropriate.
 11.2.   Meetings of the Executive Committee.
 (a)       Regular meetings of the Executive Committee shall be held at
such times and places as the Executive Committee shall
 
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  designate, provided that the Executive Committee shall meet not less than four times a year and no more than five months shall elapse between meetings unless
otherwise mutually agreed by the Partners, and provided further that the Executive Committee shall hold a meeting in the first half of December each year for the approval of the Annual Business Plan for the next year. Meetings shall be convened by
either of the Co-Chairmen, one of whom, on an alternating basis, shall preside (or appoint an alternate member to preside in his stead) at all meetings of the Executive Committee whether in person, by telephone or video conference. Special meetings
of the Executive Committee shall be convened by either of the Co-Chairmen at any reasonable time and place at the request of any member upon not less than five days’ notice to be given by telefax to each member. Each member shall be informed by
telefax not less than five days in advance of any meeting of the agenda of matters to be presented to the meeting. Emergency meetings may be held without notice with the agreement of both Co-Chairmen or all Partners. Members may be accompanied at
meetings of the Executive Committee or any other subcommittee meeting by any one or more advisors as they shall select and members of the Finance Committee may be invited to the meetings of the Executive Committee by any member of the Executive
Committee. The members of the Executive Committee shall designate a member or some other person to act as secretary and take minutes at each meeting of the Executive Committee.
 (b)       A quorum for any meeting of the Executive Committee shall be all of the members of the Executive Committee. For purposes of this
Agreement, “presence” shall mean physical presence, participation by telephone or video conference or the like presence of an alternate designated by any member in writing. Any member of the Executive Committee may represent and vote on
behalf of any other member at any meeting by written proxy signed with respect to that particular meeting and any such member represented by proxy shall be included in determining the presence of a quorum.
 (c)       All decisions of the Executive Committee shall be taken by unanimous vote of all members of the Executive
Committee. Any action which can be taken by the Executive Committee in a duly called meeting may also be taken by a written consent executed by all of the members of the Executive Committee.
 (d)       Meetings of the Executive Committee or any subcommittee may be held by conference telephone or any similar
communications equipment by means of which all persons participating in the meeting can hear each other.
 (e)       The members of the Executive Committee will receive no compensation, but will be reimbursed for their reasonable out-of-pocket expenses in attending meetings of the Executive
Committee.
 
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  11.3.   Finance Committee.
 (a)       The Executive Committee shall establish a Finance Committee, which shall consist of two
members, and may delegate to the Finance Committee such functions of the Executive Committee as may be agreed to by all the members of the Executive Committee. KO Sub and CCBCC Sub shall each appoint one member of the Finance Committee, who shall
not be a member of the Executive Committee, and each Partner’s appointment shall be reasonably acceptable to the other.
 (b)       All of the members of the Finance Committee shall be present for a quorum to exist. Members of the Finance Committee may not appoint an alternate member or grant any proxy to act
for such member, but an alternate member may be appointed for any member by the Partner who has appointed such member. The provisions of Sections 11.2(c), (d) and (e) hereof shall apply to the Finance Committee. The Finance Committee shall meet as
needed and all actions taken by the Finance Committee shall be recorded in written communications to all members of the Executive Committee. The Executive Committee shall ratify the actions of the
Finance Committee at its next scheduled meeting, based on a report from the Finance Committee.
 11.4.   Operational Management. The Executive Committee may appoint an individual to serve as General Manager. The General Manager shall have such authority as may be designated by the Executive Committee, subject to the terms
of this Agreement and the requirement that the Executive Committee approve those items listed on Exhibit 11.1(d).
 11.5.   Annual Business Plan.
 (a)       Attached hereto as Exhibit 11.5(a) is the Partnership’s Annual Business Plan for the Partnership’s first fiscal year ending January 2, 1994. Not later than sixty (60)
days before the end of each fiscal year of the Partnership, CCBCC Sub or the Manager under the Management Agreement shall prepare and recommend to the Finance Committee a draft Annual Business Plan for the next succeeding fiscal year. The Finance
Committee shall review such projections and make such modifications as it deems necessary and present it to the Executive Committee on or before its December meeting immediately preceding the fiscal year that is the subject of the Annual Business
Plan. The Executive Committee shall thereafter hold a meeting for the purpose of considering and adopting the Annual Business Plan. The Partners will review each proposed Annual Business Plan in a reasonable and expeditious manner. If the Executive
Committee is unable to agree on an Annual Business Plan for any fiscal year, then, pending such agreement, the approved budget for that year shall be based on (i) amounts submitted to the Finance Committee (as may be modified by the Finance
Committee) with respect to items that are not in dispute plus (ii) 100% of the prior year’s budget as set forth in the prior year’s Annual Business Plan with respect to items that
 
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  are in dispute plus (iii) recurring items otherwise approved during the prior year at such prior year’s cost.
 (b)       Unless otherwise specifically authorized by the Executive Committee or the Finance Committee, the officers of
CCBCC Sub and the Manager shall be authorized to conduct the operations and business of the Partnership, and to pay the expenses thereof out of Partnership funds, only in accordance with the approved Annual Business Plan for the then-current fiscal
year.
 11.6.   Interested Partners. No contract or business venture involving
the Partnership shall be void or voidable because a Partner or any Affiliate of such Partner has a financial interest in such contract or business venture, nor shall any such financial interest prevent such Partner or the member of the Executive
Committee appointed by such Partner from participating in the deliberations of the Partnership concerning such contract or business venture or from casting a vote with respect to such contract or business venture; provided that prior to
participating in such deliberations or casting such vote, such Partner or the member of the Executive Committee appointed by such Partner discloses to the other Partners or the Executive Committee all material facts relating to the interest of such
Partner in such contract or business venture. Such member of the Executive Committee may appoint an alternate member of the Executive Committee to cast any vote. The member of the Executive Committee appointed by any such interested Partner may be
counted in determining the presence of a quorum at any meeting of the Executive Committee.
 Section 12.    Banking.
 Unless otherwise approved by the Executive Committee or as reflected in
the Management Agreement, the funds of the Partnership may be kept in a separate account or accounts in the name of the Partnership in such bank or banks as may be designated by the Executive Committee.
All withdrawals from such an account shall be made on such signature or signatures as shall be designated by the Executive Committee. The Partnership may also enter into such agreements with the Manager as may be required for the cash management of
the Partnership.
 Section 13.    Accounting.
 13.1.   Books of Account. The Partnership books of account shall be maintained at the
principal office of the Partnership or such location and by such person or persons as may be designated by the Executive Committee. The Partnership books of account shall be maintained on a fiscal year basis and shall be kept in accordance with such
method of accounting as may be adopted by the Executive Committee.
 
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  13.2.   Tax Matters Partner. CCBCC Sub shall act as the
“Tax Matters Partner” for the Partnership. The Tax Matters Partner shall be authorized to act on behalf of the Partnership in administrative or judicial proceedings relating to the determination of Partner items of income, deduction and
credit for tax purposes. The Tax Matters Partner may enter into and execute on behalf of all Partners an agreement with the Internal Revenue Service extending the time periods relating to submitting administrative adjustment requests for the
Partnership and, with the approval of the Executive Committee, extending the statute of limitations for making an assessment of federal income taxes. Any such agreements will be binding on all Partners. The Tax Matters Partner may not enter into any
agreement with the Internal Revenue Service which affects the amount, deductibility or credit of any Partnership tax item without the prior approval of the Executive Committee. In the event of an audit of the Partnership’s income tax returns,
the Tax Matters Partner will provide all Partners with the information required by law relating to the administrative or judicial proceedings for the adjustment of Partnership tax items.
 13.3.   Annual Audit.
 (a)       On or prior to March 15 of each year, representatives of the Manager shall complete such reviews as they deem necessary with respect to the Partnership’s accounts for the
prior fiscal year and will deliver the financial statements for such year to KO Sub and Ernst & Young or such other accounting firm as may be selected by KO (“E&Y”). E&Y shall have the right to review all internal work papers,
including having access to all Persons who participated in such account reviews and their respective work papers. If KO Sub and CCBCC Sub do not agree on any item(s) in such financial statements which exceed $5,000 in the aggregate, the item(s) in
dispute shall be submitted to an accounting firm jointly designated by Price Waterhouse & Co. or such other accounting firm as may be selected by CCBCC Sub (“PW”) and E&Y, the determination of which shall be final and binding on
the Partners. The costs and expenses of E&Y and PW shall be borne by the Partnership.
 (b)       The external audit of the Partnership’s financial statements shall be performed each year by a “Big Six” accounting firm selected by CCBCC Sub subject to the
reasonable approval of KO Sub. In the event of a reasonable rejection of CCBCC Sub’s selection by KO Sub, the Partners will negotiate in good faith to select a mutually acceptable external auditor. If the Partners are unable to agree, then the
Executive Committee will solicit at least two bids for such services from jointly-selected “Big Six” accounting firms. The Partnership shall contract with the accounting firm offering the lowest bid for such services, or as may be
otherwise agreed by the Executive Committee.
 
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  13.4.   Financial Statements. The Manager of the
Partnership shall cause to be prepared and shall provide to the Partners the following written reports:
 (a)       Monthly Reports. As soon as practicable following the end of each of the first three (3) months of the term of this Agreement (but in no event more than
60 days following each such month-end), and thereafter within twenty-five (25) days after the end of each of the first eleven (11) months of each fiscal year, and within forty-five (45) days after the end of the twelfth month of each fiscal year,
unaudited financial statements for the Partnership, including profit and loss statements and balance sheets, which clearly summarize the activities and financial position of the Partnership for the month then ended and the current fiscal year to
date.
 (b)       Audit Report. Within ninety (90) days
after the end of each fiscal year, audited financial statements of the Partnership, including a balance sheet of the Partnership as at the end of such fiscal year and a statement of income and retained earnings and a statement of cash flow for the
Partnership for such year, setting forth in each case in comparative form such items as at the end of and for the previous fiscal year, together with all necessary footnotes and the opinion of the independent certified public accountants for the
Partnership.
 (c)       Tax Returns. Within one hundred
fifty (150) days after the end of each fiscal year, all necessary financial and other data required by each Partner for inclusion in or preparation of its tax returns.
 13.5.   Inspection. Each Partner shall have the right, at its own expense, to examine and inspect, at any reasonable time, any books,
records, properties or operations of the Partnership and to make copies or extracts of such books and records (including, without limitation, records relating to insurance losses).
 13.6.   Fiscal Year. The first fiscal year of the Partnership shall commence on the date hereof and end on January 2, 1994. Thereafter,
the fiscal year of the Partnership shall be consistent with CCBCC Sub’s fiscal year end.
 Section 14.    Reimbursement of Partners’ Expenses.
 14.1.   Expenses of Partners. Each Partner shall bear its respective legal, accounting and other expenses incurred in connection with the formation of the Partnership and the other
transactions contemplated by this Agreement; provided, however, that the parties agree that the DAA Agreement shall provide that the aggregate purchase price paid by the Partnership under the Coastal Purchase Agreement, the Goldsboro Purchase
Agreement and the Wilmington Purchase Agreement shall be increased by the amount of any such expenses incurred by KO or its Affiliates.
 
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  14.2.   Expenses to Be Paid by the Partnership. The
Partnership shall pay, and shall reimburse the Partners and their Affiliates for, (a) all expenses which are authorized in the Annual Business Plan for the then-current fiscal year or which are approved by the Executive Committee and (b) all
expenses of any kind incurred by any Partner or its Affiliates in connection with the transactions described in Section 8.3 of this Agreement (except for any expenses of KO which are included in the Purchase Expenses).
 14.3.   Expenses To Be Paid By the Partners. The Partners and their Affiliates shall not receive
any reimbursement from the Partnership for any expenses incurred by them which are not authorized in the Annual Business Plan for such fiscal year or which are not otherwise approved by the Executive Committee or the Finance Committee.
 Section 15.    Withdrawal from Partnership.
 Each of the Partners covenants and agrees that it will not voluntarily withdraw from the Partnership and will carry out its duties and responsibilities hereunder until the
Partnership is terminated, liquidated and dissolved pursuant to Section 20 hereof or unless such Partner’s Interest is completely disposed of in compliance with the provisions of any of Sections 16 through 19 hereof.
 Section 16.    Transfer of Interests.
 16.1.   Limitation on Transfers. (a) Each of the Partners agrees that it shall not sell, dispose of, or otherwise
transfer or encumber any of its Interests in the Partnership (hereinafter referred to as a “Transfer”) at any time, except as provided for in Sections 16 through 19 of or elsewhere in this Agreement. The Partners shall cause the
Partnership not to recognize as a party to this Agreement any transferee of any Partner’s Interest which was transferred other than in compliance with the terms and restrictions of this Agreement, and, unless there has been such compliance, any
transferee of such Interest shall have no rights whatsoever under this Agreement or in the Partnership. Notwithstanding the foregoing, at any time after December 31, 1996, either Partner may request a good faith negotiation to buy from or sell to
the other party all of its Interest. Each Partner shall be at all times precluded from Transferring less than its entire Interest without the express written consent of the other Partner.
 (b)       The Interests of Ventures and Palmetto shall be treated as owned by a single Partner for the purposes of Sections 16, 17, 18 and 19 of
this Agreement such that no Transfer of the Interest of Ventures or Palmetto may occur without the simultaneous Transfer to the same transferee of the entire Interest owned by the other. Any reference to a “Partner” in such

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  Sections shall be deemed to refer to KO Sub, on the one hand, and Ventures and Palmetto collectively, on the other hand.
 16.2.   Right of First Refusal.
 (a)       If at any time after June 30, 1996, a Partner receives a bona fide offer from a Third Party to purchase all (but not less than all) of
its Interest and is desirous of accepting such offer, such Partner (the “Selling Partner”) shall notify the other Partner of the terms of the offer in writing (hereinafter referred to as a “Sale Notice”). The Sale Notice shall
specify the name and address of the Third Party, and all of the terms and conditions of said bona fide offer, and the Sale Notice shall be accompanied by a true and complete copy of any offer letter, agreement and/or any other written information
relating to the proposed transfer. In the event that the proposed transfer contemplates any consideration other than cash, then the Selling Partner shall state in the Sale Notice its good faith belief as to the fair market value of the
consideration. No such Sale Notice shall be withdrawn (unless such Third Party shall revoke its offer) except with the approval of the Executive Committee.
 (b)       The Partner receiving the Sale Notice shall have an option for one hundred twenty (120) days from receipt of the Sale Notice to agree to purchase from the
Selling Party the Interest proposed to be transferred at the same price (whether in cash or the same non-cash consideration as is offered by the Third Party) and upon the same terms and subject to the conditions contained in the Sale Notice;
provided, however, that if the specified consideration is not cash and the Partner receiving the Sale Notice does not agree with the Selling Partner’s good faith determination of the fair market value of the consideration, then the Partner
receiving the Sale Notice shall require that the fair market value of such non-cash consideration (and the resultant purchase price for the offered Interest) be determined by a mutually agreed upon appraisal firm. In the event an appraisal firm is
retained to determine the purchase price for the offered Interest, the Partner receiving the Sale Notice shall have thirty (30) days after the date the opinion of the appraisal firm regarding the value of the Interests is delivered to such Partner
to provide the Selling Partner with its written acceptance of such offer, but in no event earlier than 120 days following receipt of the Sale Notice. The costs and expenses of such appraisal firm shall be borne by the Partnership.
 (c)       The Partner receiving the Sale Notice may exercise the purchase option provided herein
by giving written notice to the Selling Partner specifying the date and the location for the closing of the purchase of such Interests. The notice shall be delivered to the Selling Partner at least ten (10) days prior to such closing date. The
closing of such sale shall occur as provided in Section 19.3.
 
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  (d)       In the event the Partner receiving the Sale Notice
fails to exercise its option to purchase the Interest, then the Third Party shall have the right for a period of ten (10) days after the expiration of the thirty (30) day option period described in Section 16.2(b) to purchase such Interest from the
Selling Partner at the price and upon the terms and conditions contained in the Sale Notice. If the Third Party fails to purchase the Interest within said ten (10) day period, the Interest shall again become subject to the restrictions of this
Section 16.
 (e)       Any Partner which transfers its Interest to any Third Party
shall include, as part of the transfer agreement, provisions which require the transferee to accept and agree to be bound by the provisions of this Agreement as if it were a signatory hereof.
 16.3.   Transfers to Wholly Owned Subsidiaries. Notwithstanding the foregoing provisions, KO Sub shall have the
unconditional right to assign and transfer all of its Interest to KO or any direct or indirect wholly owned subsidiary of KO, and CCBCC Sub shall have the unconditional right to assign and transfer all of its Interest to CCBCC or any direct or
indirect wholly owned subsidiary of CCBCC. Any Partner which transfers any of its Interest pursuant to this Section 16.3 shall include, as part of the transfer agreement, provisions which require the transferee to accept and agree to be bound by the
provisions of this Agreement as if it were a signatory hereof. In addition, upon any such transfer, the transferee shall covenant and agree for the benefit of each of the Partners to reconvey such Interest to its transferor in the event such
transferee ceases to be a direct or indirect wholly owned subsidiary of KO or CCBCC, as the case may be. A transfer permitted by this Section 16.3 shall not be subject to the restrictions imposed by Sections 16.1 and 16.2 hereof.
 16.4.   Pledge of Interests. Notwithstanding Section 16.1(a), a Partner may pledge its
Interest to a financial institution to secure loans made to such Partner or its Affiliates so long as the financial institution agrees in writing that such Interest is subject to the terms and conditions of this Agreement, including without
limitation, the right of the other Partner to purchase such Interest pursuant to Section 18.2 upon any transfer of ownership of the Interest to the financial institution or a Third party.
 Section 17.    Deadlock and Buy/Sell. 
 17.1.   Deadlock.
 (a)       At any time following a Change of Control or a Harrison Change in Control, in the event any material decision cannot be taken because of the inability of the Executive Committee to
reach unanimous agreement on such decision at two
 
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  consecutive meetings of the Executive Committee (a “Deadlock”), either Partner may decide that additional time for discussions between the members
of the Executive Committee will not solve the Deadlock and may thereupon declare a continuing Deadlock by giving written notice to the other Partner (“Notice of Partners’ Deadlock”). Within 30 days after receipt of the Notice of
Partners’ Deadlock, the Chief Executive Officer of KO and the Chief Executive Officer of CCBCC (or such other designees as the parties shall mutually agree on) shall meet in such place as they mutually agree in a good faith effort to reach an
accord which will end the Deadlock. If these executive officers are unable to mutually resolve the Deadlock, either Partner may, in good faith, declare by written notice to the other Partner that a final Deadlock exists and that more time and
discussion would not likely result in a mutual resolution of the Deadlock (“Notice of Final Deadlock”).
 17.2.   Buy-Sell.
 (a)       At any time following a Notice of Final Deadlock with respect to a decision which has not been made by the Partners at such time, either Partner (the “Initiating
Partner”) may notify the other Partner that the Initiating Partner is exercising the buy-sell rights hereunder. Such notice (the “Buy-Sell Notice”) shall include the Initiating Partner’s determination of the value of all of the
Interests in the Partnership (the “Proposed Value”).
 (b)       The
Partner receiving the Buy-Sell Notice must elect within 30 days following its receipt of the Buy-Sell Notice to either purchase the Interest of the Initiating Partner or to sell its Interest to the Initiating Partner. If the Partner receiving the
Buy-Sell Notice fails to make the election within such 30-day period, such Partner shall be deemed to have elected to sell its Interest to the Initiating Partner. Any such election (or deemed election) shall create a binding agreement between the
Partners to transfer the Interest to be sold at a purchase price equal to the Proposed Value multiplied by the percentage interest in the Partnership represented by the Interest to be sold, provided
that if the provisions of this Section 17 are applicable solely because of a Harrison Change in Control, then the purchase price for such Interest shall not be less than the Minimum Purchase Price. The closing of the sale shall occur as provided in
Section 19.3.
 Section 18.    Sale Upon Default.
 18.1.   Defaulting Partner. For purposes of this Section 18, a Partner shall be deemed to
be a “Defaulting Partner” if:
 (a)       such Partner breaches any
material term or condition of this Agreement and fails to cure such breach within 30 days after it has received written notice thereof from the
 
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  non-breaching Partner, provided that any breach by CCBCC Sub of the representations and warranties in Section 21 hereof shall not result in CCBCC Sub being a
Defaulting Partner;
 (b)       such Partner admits in writing its inability to pay
its debts, makes a general assignment for the benefit of creditors, is adjudicated bankrupt or insolvent or consents to the institution of such a proceeding, seeks reorganization or relief of any kind under any law relating to the relief of debtors
or consents to such a proceeding, or is subject to a court decree or order which remains in effect for at least 60 days, relating to its bankruptcy, insolvency or relief of debt in any manner;
 (c)       such Partner voluntarily Transfers its Interest except as permitted in this Agreement;
 (d)       such Partner is liquidated or dissolved;
 (e)       in the case of CCBCC Sub, a Change of Control or a Harrison Change in Control has occurred; or
 (f)       in the case of KO Sub, KO Sub ceases to be a wholly owned subsidiary of KO without the
consent of CCBCC.
 The occurrence of a Defaulting Event with respect to Ventures or Palmetto shall be deemed a Defaulting Event by both Partners.
 18.2.   Option to Buy Out Defaulting Partner.
 (a)       In the event that a Partner becomes a Defaulting Partner, the other Partner or its designee (the
“Non-Defaulting Partner”) shall have the option to purchase the Defaulting Partner’s Interest. In order to determine the option price the Partners shall promptly cause the Appraised Value of the Defaulting Partner’s Interest to
be determined in accordance with Section 18.3. If the Non-Defaulting Partner elects to exercise its option to purchase the Defaulting Partner’s Interest, the Non-Defaulting Partner shall deliver written notice of such exercise (the “Option
Exercise Notice”) to the Defaulting Partner within 30 days following receipt of the Value Opinion in accordance with Section 18.3. Such Option Exercise Notice shall set forth the date and location of the closing of the purchase of the
Defaulting Partner’s Interest (which closing shall occur not later than 30 days following receipt of the Option Exercise Notice).
 (b)       The purchase price for the Defaulting Partner’s Interest shall be an amount equal to the Appraised Value of such Partnership Interest, provided that if the provisions of this
Section 18 are applicable solely because of a Harrison Change in Control, then the purchase price for such Interest shall not be less than the Minimum Purchase Price. The closing of such sale shall occur as provided in Section 19.3.

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  (c)       If the Non-Defaulting Partner elects not to exercise
its right to purchase the Defaulting Partner’s Interest pursuant to this Section 18.2, the Non-Defaulting Partner may elect either to cause the Partnership to be liquidated and dissolved in accordance with Section 20 or take no action
whatsoever.
 (d)       The provisions of this Section 18 shall not relieve a
Defaulting Partner of any obligation to indemnify the Partnership or the Non-Defaulting Partner for any damages suffered as a result of the failure of the Defaulting Partner to comply with the provisions of this Agreement, and the purchase option
provided for hereunder shall not be in lieu of any other right or remedy which the Partnership or the Non-Defaulting Partner may have against the Defaulting Partner at law or in equity.
 18.3.   Appraised Value. For purposes of this Agreement, the “Appraised Value” of a Partner’s Interest shall mean the
product of (a) the amount in U.S. dollars that the Partners would receive upon a sale of all of the outstanding Interests of the Partnership in an arm’s length transaction between a willing buyer and willing seller, as of the month-end next
following the date of giving of the notice under any provision hereof which caused the Appraised Value to be determined times (b) the percentage Interest in the Partnership as to which the Appraised
Value is to be determined. Appraised Value shall be mutually agreed upon by the Partners or, if the Partners are unable to agree within 30 days, determined by an investment banking firm of national standing jointly selected by the Partners. If the
Partners are unable to mutually agree on an investment banking firm, they shall each choose an investment banking firm and those two firms shall, in good faith, select a third investment banking firm. The investment banking firm so selected shall
prepare an appraisal setting forth its determination of the Appraised Value, which determination shall be final and binding on the Partners. The cost of such investment banking firm(s) shall be borne by the Partnership. If the circumstances
described in Section 16, 17 or 18 occur, the selling Partner must cooperate fully in selecting investment bankers and shall cooperate fully in their determination of the Appraised Value. If a selling Partner fails to select an investment banker or
fails to cooperate with such banker as described herein, in either case, within ten days of receipt of a notice specifying such failure to cooperate from the other Partner, the other Partner shall, in good faith, cooperate with the investment banker
already retained under the terms of this provision or, if not yet retained, select an investment banking firm of its sole discretion, to make a determination of Appraised Value, which determination shall be final and binding on the selling Partner.
The Partner(s) shall instruct the investment banking firm so retained to deliver its written opinion as to the Appraised Value to the Partners within 30 days following the selection of such banker. In determining Appraised 
  
 
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  Value, no discounts for lack of control or lack of marketability shall be applied. The Appraised Value as mutually agreed upon by the Partners or as set
forth in the written opinion of the investment banker is referred to herein as the “Value Opinion.”
 Section 19.    Other Purchase Rights.
 19.1.   Purchase by CCBCC Sub. CCBCC Sub will use its best efforts, subject to the interests of the shareholders of CCBCC, to purchase the entire Interest of KO Sub in the Partnership
for the fair market value thereof during the period between the sixth and eighth anniversaries of the date hereof. This Section 19.1 is subject to (a) the ability of CCBCC Sub to obtain financing for the purchase of KO Sub’s Interest on terms
that are not materially less favorable than any bank financing then available to CCBCC (b) such transaction will not impair CCBCC’s public debt rating and (c) CCBCC’s reasonable, good faith conclusion that such purchase would provide the
shareholders of CCBCC with an
 acceptable return given the resulting risk.
 19.2.   Purchase by KO Sub. If CCBCC Sub fails to purchase KO Sub’s Interest pursuant to Section 19.1 on or prior to the eighth anniversary of the date
hereof, KO Sub or its designee will have the option, for a period of one year following the eighth anniversary hereof, to request a good faith negotiation with CCBCC Sub to purchase the entire Interest owned by CCBCC Sub, and CCBCC Sub shall
thereafter negotiate in good faith with respect to such purchase. Such option may be exercised by the giving of notice from KO Sub to CCBCC Sub at any time prior to the expiration of such one year period.
 19.3.   Closing. The closing of any transfer of Interests pursuant to Sections 16, 17 or 18 or this Section 19 shall
occur at the main offices of the Partnership, on a date specified by the purchasing Partner. At the closing, (a) the purchase price for the selling Partner’s Interest shall be paid in immediately available funds and (b) the selling Partner will
execute such agreements, instruments and certificates, and shall take all such further actions, as may be reasonably requested by the purchasing Partner in order to consummate the transfer of good title to the selling Partner’s Interests to the
purchasing Partner or its designee, free and clear of any security interests, liens, claims or encumbrances whatsoever. The purchasing Partner shall be responsible for any sales or transfer tax resulting from any such transfer.
 19.4.   Tolling of Time. The time for any closing of a purchase of an Interest pursuant to
Sections 16, 17, 18 and this Section 19 will be appropriately tolled (a) during the pendency of any periods required or necessary to comply with applicable laws, including, without limitation, the waiting periods required by the Hart-Scott-Rodino
Antitrust Improvements Act of 1976, as amended, and (b) during the pendency of any litigation which in 
  
 
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  the opinion of the purchasing Partner’s counsel prevents such Partner from exercising its rights under this Agreement.
 Section 20.    Term, Termination and Liquidation
 20.1.   Term. The term of this Agreement shall commence on the date
hereof and, unless earlier terminated pursuant to Section 20.2, shall terminate simultaneously with the liquidation of the Partnership.
 20.2.   Dissolving Events.
 The Partnership shall be dissolved (and thereupon liquidated) upon
the happening of any of the following events (“Dissolving Events”):
 (a)       an election of the Executive Committee to terminate the Partnership;
 (b)       the entry of a final judgment, order or decree of a court of competent jurisdiction adjudicating the Partnership to be bankrupt, and the expiration of the period, if any, allowed by applicable law in which to appeal therefrom;
 (c)       the end of the Initial Term or any subsequent term following the timely election by a
Partner to terminate the Partnership as provided in Section 5; or
 (d)       the
election by a Non-Defaulting Partner to liquidate and dissolve the Partnership pursuant to Section 18.2(c).
 20.3.   Dissolution.
 (a)       Upon the occurrence of a Dissolving Event, the Partners shall cause the assets of the Partnership to be distributed to the Partners in equal amounts and shall assume the
liabilities of the Partnership (or otherwise cause such liabilities to be satisfied), as may be agreed by the Partners, so that the portion of the Territory originally comprising the Coastal Assets, the Goldsboro Assets and the Wilmington Group
Companies (the “KO Portion”) shall be returned to KO Sub and that the portion of the Territory originally comprising the CCBCC Contributed Assets and the CCBCC Purchased Assets (the “CCBCC Portion”) shall be returned to CCBCC
Sub. If the Partners cannot agree on the CCBCC Portion and the KO Portion, then the assets and territories comprising the CCBCC Portion and the KO Portion shall be determined by the Dissolution Banker.
 (b)       The Partnership shall retain an independent nationally recognized investment banking firm acceptable to the
Partners (the “Dissolution Banker”) to value the KO Portion and the CCBCC Portion. If the Partners cannot agree on the Dissolution Banker to value the KO Portion and the CCBCC Portion 
  
 
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  within 60 days of a Dissolving Event, then either Partner may petition the American Arbitration Association to appoint an arbitrator who shall select a
Dissolution Banker to value the CCBCC Portion and the KO Portion.
 (c)       Within
120 days of appointment, the Dissolution Banker shall prepare a report setting forth the fully liquidated fair market value of the KO Portion and the CCBCC Portion, which shall be final and binding absent manifest error. If the value of the CCBCC
Portion as so determined is not equal to the value of the KO Portion, then the Partners shall make appropriate adjustments or contributions to the Partnership or payments to each other so that the value returned to KO Sub and CCBCC Sub is
equivalent.
 20.4.   Procedures on Liquidation.
 (a)       If the Partners so desire, in lieu of a division as provided in Section 20.3 hereof, the
Partners may agree to seek to market by public or private sale all the outstanding Interests of the Partnership and/or the business or assets of the Partnership, as a whole, for the highest price. The acceptance of any offer of any third party in
this auction procedure shall first be subject to and conditioned upon the prior approval of the Executive Committee.
 (b)       If the Partners have been unable to arrange a dissolution under Section 20.3 or a contract of sale satisfactory to both Partners on or prior to the first anniversary of the date of
the Dissolving Event, any Partner may petition the American Arbitration Association for the appointment of a liquidator who shall be fully empowered to act for the Partnership and each Partner in order to dispose of and liquidate the Interests or
the assets of the Partnership. Each Partner will cooperate fully with such liquidator.
 20.5.   Distribution of Assets. Any proceeds derived from the sale of the Partnership’s assets, together with all Partnership assets which are not sold, shall be applied and distributed in the following manner and in the
following order of priority:
 (a)       To the payment of the debts and liabilities
of the Partnership and to the expenses of liquidation in the order of priority as provided by law, and to the establishment of any reserves which the Executive Committee deems necessary for any contingent or unforeseen liabilities or obligations of
the Partnership; then to
 (b)       The repayment of any liabilities or debts, other
than Capital Accounts, of the Partnership to any of the Partners; then to
 (c)       To each Partner in proportion to and to the extent of their respective positive Capital Account balances after the 
  
 
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  Capital Accounts of the Partners have been adjusted for the allocation of net profit and net loss under Section 9 and such other adjustments as may be
required under Code regulation 1.704-1(b)(2)(iv).
 (d)       The Partners in
proportion to their Interests in the Partnership.
 20.6.   Date of Dissolution. The Partnership shall terminate and dissolve when all property owned by the Partnership shall have been disposed of in accordance with Sections 20.3 or 20.4, as the case may be. The establishment of any reserves in accordance with the
provisions of Section 20.5 above shall not have the effect of extending the term of the Partnership, but any such reserve shall be distributed in the manner provided in such Section upon expiration of the period of such reserve.
 20.7. Tax Consequences. Upon a dissolution, liquidation or distribution under this Section 20, the Partners agree to consider
the overall tax consequences when choosing the method of unwinding the Partnership.
 Section 21.    Representations and Warranties; Indemnification.
 21.1. Representations and Warranties of CCBCC Sub. CCBCC Sub represents and warrants to KO Sub as follows: 
 (a)       Each of Affiliated and Ventures is a corporation validly existing under the laws of the State of Delaware and has full legal right, power and authority to enter into this Agreement
and to perform its obligations hereunder. Fayetteville is a corporation validly existing under the laws of the State of North Carolina and has full legal right, power and authority to enter into this Agreement and to perform its obligations
hereunder. Palmetto is a corporation validly existing under the laws of the State of South Carolina and has full legal right, power and authority to enter into this Agreement and to perform its obligations hereunder.
 (b)       This Agreement has been duly authorized by all necessary corporate action of Affiliated,
Fayetteville, Palmetto, Ventures and CCBCC, has been executed by duly authorized representatives of Affiliated, Fayetteville, Palmetto and Ventures and constitutes the legal, valid and binding obligation of Affiliated, Fayetteville, Palmetto and
Ventures, enforceable in accordance with its terms.
 (c)       Except as set forth
in Schedule 21.1(c), the execution, delivery and performance of this Agreement by Affiliated, Fayetteville, Palmetto and Ventures does not violate any provisions of
  
 
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  (i)       the certificate of incorporation
or bylaws of Affiliated, Fayetteville, Palmetto, Ventures or CCBCC,
 (ii)      any material contract or instrument to which Affiliated, Fayetteville, Palmetto, Ventures or CCBCC is a party or by which it or any of its assets is bound, or
 (iii)     any law, decree, regulation or order of any governmental authority to which
Affiliated, Fayetteville, Palmetto, Ventures or CCBCC or any of their respective assets is subject.
 (d)       [Intentionally deleted]
 (e)       Affiliated, Fayetteville and Palmetto each has all right, title and interest in and to the Affiliated Contributed Assets, the Fayetteville Contributed Assets and the Palmetto
Contributed Assets, respectively. The CCBCC Contributed Assets are in good condition (ordinary wear and tear excepted) and are not subject to any liens, security interests, taxes, charges, claims, liens or other encumbrances of any nature
whatsoever, except for (i) liens for taxes not yet due and payable and (ii) permitted title exceptions reflected on title insurance binders issued to the Partnership (collectively, the “Permitted Liens”). Upon transfer of the CCBCC
Contributed Assets to the Partnership, the Partnership will have all right, title and interest in the CCBCC Contributed Assets, free and clear of any liens, security interests, taxes, charges, claims, liens or other encumbrances of any nature
whatsoever, except for the Permitted Liens. The CCBCC Contributed Assets and assets leased under the contracts listed in Schedule 21.1(e) hereto represent all the assets used in and necessary to the businesses currently operated using the CCBCC
Contributed Assets, other than assets owned by CCBCC which will be used in connection with the future operations of the CCBCC Contributed Assets pursuant to the Management Agreement. The contracts listed on Schedule 21.1(e) are hereby assigned to
the Partnership, and the Partners shall cause the Partnership to assume, the rights and obligations under such contracts.
 (f)       Except as set forth in Schedule 21.1(f): (i) no assignment of the CCBCC Prior Purchase Agreements or any rights thereunder has been made by CCBCC or Sunbelt or any of their
Affiliates; (ii) neither CCBCC nor Sunbelt nor any of their Affiliates has done any act or failed to do any act which will restrict CCBCC or Sunbelt or any of their Affiliates in acting under any provision of the CCBCC Prior Purchase Agreements;
(iii) CCBCC does not know of any breach or default or any state of facts which would, with the giving of notice or the passage of time or both, constitute a breach or default of any CCBCC Prior Purchase Agreement by CCBCC or Sunbelt or any other
party
 
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  thereto or which could give rise to any claim under the CCBCC Prior Purchase Agreements; (iv) the CCBCC Prior Purchase Agreements have not been amended,
modified or discharged, nor has CCBCC or Sunbelt or any of their Affiliates waived any material right thereunder, other than written waivers which have been disclosed by CCBCC Sub to KO Sub; and (vi) neither CCBCC nor Sunbelt or any of their
Affiliates has given any notice of any claim or currently intends to give notice of any claim under any CCBCC Prior Purchase Agreement. CCBCC Sub has provided true and complete copies of all amendments to the CCBCC Prior Purchase Agreements and any
correspondence relating to any amendments of, or actual or contemplated claims under, the CCBCC Prior Purchase Agreements.
 (g)       To the Knowledge of CCBCC, except as set forth on Schedule 21.1(g), all of the representations and warranties of the sellers set forth in the CCBCC Prior Purchase Agreements
relating to the CCBCC Contributed Assets were true and accurate as of the respective dates made. To the Knowledge of CCBCC, except as set forth on Schedule 21.1(g) hereto, with respect to those representations and warranties in the CCBCC Prior
Purchase Agreements which survive through the date hereof or on the disclosure schedules to the CCBCC Prior Purchase Agreements, all of such representations and warranties are true and accurate in all material respects as of the date
hereof.
 (h)       Except as set forth on Schedule 21.1(h) hereof, since December
19, 1991 (being the date of CCBCC’s acquisition of Sunbelt), the businesses conducted with the CCBCC Contributed Assets (the “CCBCC Contributed Business”) have been conducted only in the ordinary course, and neither CCBCC has, nor any
CCBCC Affiliate has, to the Knowledge of CCBCC, with respect to the CCBCC Contributed Business:
 (i)       suffered any damage or destruction materially and adversely affecting the CCBCC Contributed Business or the CCBCC Contributed Assets;
 (ii)      organized any subsidiary, acquired any capital stock or other equity securities of any corporation,
or acquired any equity or other ownership interest in any business;
 (iii)     suffered any material adverse change in its assets, liabilities, financial condition, or relationships with any material suppliers or customers;
 (iv)     incurred any material liability or obligation (absolute, accrued, contingent or otherwise) not incurred in the ordinary course of business
consistent with past practice;
 (v)      incurred, assumed or
guaranteed any obligations or liability for borrowed money, or
 
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  exchanged, refunded, or renewed any outstanding indebtedness in such a manner as to reduce the principal amount of such indebtedness or
increase the interest rate or balance outstanding, excluding borrowings by CCBCC for general corporate purposes;
 (vi)     permitted any of its assets to be subjected to any security interest, lien, claim or other encumbrance;
 (vii)    intentionally waived any material claims or rights;
 (viii)   sold, transferred or otherwise disposed of any of its assets, except (A) in the ordinary course of business consistent with past practice or (B) as such
transactions are reflected in the 1992 year end balance sheet prepared for the CCBCC Contributed Assets;
 (ix)     entered into any material commitment or transaction, other than in the ordinary course of business;
 (x)      instituted or been named as a defendant in any litigation or other legal proceeding in which the amount sought as damages exceeded $50,000
or become subject to any order, judgment or consent decree, which is currently pending or remains outstanding;
 (xi)     violated any applicable local, state or federal law, ordinance, regulation, and/or decree (including, without limitation, any antitrust or environmental laws) or received any notice alleging
any violation of any such law, ordinance, regulation and/or decree which could have any material adverse effect on the Acquired Business;
 (xii)    breached any material contract or become aware of any breach of a material contract by any third party; or
 (xiii)   agreed in writing, or otherwise, to take any action described in this Section.
 (i)        The CCBCC Contributed Assets do not manufacture any noncarbonated, ready to serve, naturally or artificially
flavored fruit drinks, fruit punches or fruit ades which contain fifty percent (50%) or less fruit juice and are customarily sold under refrigeration to consumers.
 (j)        The employees currently operating the businesses of the CCBCC Contributed Assets currently receive the same levels of compensation and benefits as are
customary for other similarly
 
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  situated employees of CCBCC and its Affiliates, taking into account regional variances.
 21.2.   Representations and Warranties of KO Sub.   KO Sub represents and warrants
to CCBCC Sub as follows:
 (a)       KO Sub is a corporation duly organized and
validly existing under the laws of the State of Delaware and has full legal right, power and authority to enter into this Agreement and to perform its obligations hereunder.
 (b)       This Agreement has been duly authorized by all necessary corporate action of KO Sub, has been executed by a duly authorized
representative of KO Sub and constitutes the legal, valid and binding obligation of KO Sub, enforceable in accordance with its terms.
 (c)       The execution, delivery and performance of this Agreement by KO Sub do not violate any provisions of
 (i)        the certificate of incorporation or bylaws of KO Sub or KO;
 (ii)       any contract or instrument to which KO Sub or KO is a party or by which it or any of its
assets is bound, or
 (iii)     any law, decree, regulation or order of any
governmental authority to which KO Sub or KO or any of their respective assets is subject.
 21.3.   Indemnification.     (a) CCBCC Sub agrees to reimburse, defend, indemnify and hold KO, KO Sub and the Partnership harmless from and against any and all
Losses suffered or incurred by KO, KO Sub or the Partnership or any of their directors, officers or Affiliates arising out of or resulting from, or with respect to:
 (i)       any breach or inaccuracy of any representation or warranty of CCBCC Sub, or any breach or noncompliance with any covenant or agreement
of Affiliated, Fayetteville, Palmetto or Ventures contained in this Agreement;
 (ii)      except for the liabilities listed on Schedule 21.3(a) hereto which are hereby assigned to and assumed by the Partnership, any liability or obligation of any kind, whether accrued,
contingent or otherwise, arising out of, resulting from, or relating to the ownership of the CCBCC Contributed Assets or the operation of the CCBCC Contributed Business prior to the date hereof; and
 (iii)     any breach or inaccuracy of any representation or warranty of the sellers of any part of the CCBCC
Contributed Assets pursuant to any CCBCC Prior
 
-28-

  Purchase Agreement, regardless of whether CCBCC or CCBCC Sub has any knowledge of such breach or inaccuracy.
 (b)       KO Sub agrees to reimburse, defend, indemnify and hold CCBCC, CCBCC Sub and the Partnership
harmless from and against any Losses incurred by CCBCC, CCBCC Sub or the Partnership and any of their directors, officers or Affiliates arising out of or resulting from, or with respect to, any breach or inaccuracy of any representation or warranty
of KO Sub, or any breach or noncompliance with any covenant or agreement of KO Sub contained in this Agreement.
 (c)       KO Sub and CCBCC Sub agree to cause the Partnership to reimburse, defend, indemnify and hold any seller of assets or stock under the Purchase Agreements harmless from and against
any Losses for which such seller is indemnified under the applicable Purchase Agreement.
 21.4    Limitations on Indemnification.
 (a)       None of
KO, KO Sub or the Partnership shall make any claim for indemnification against CCBCC Sub with respect to New Losses unless the aggregate amount for all claims with respect to New Losses would exceed, in the aggregate, one percent (1%) of the Final
Purchase Price for the CCBCC Contributed Assets, and then only to the extent of such excess. In calculating the amount of any claim hereunder, the amount of Loss for such claim shall be calculated after giving effect to the reserves or accruals (if
any) established on the Closing Balance Sheet (if any) for the CCBCC Contributed Assets.
 (b)       As used in this Agreement, a “New Loss” shall mean any Loss for which the Partnership is indemnified by CCBCC Sub under Section 21.3(a)(i) or (ii), but shall exclude any
Loss for which the Partnership is indemnified under Section 21.3(a)(iii).
 (c)       The representations and warranties herein with respect to New Losses shall survive for a period of one year following the Closing Date.
 (d)       With respect to Losses other than New Losses, the liability of CCBCC, CCBCC Sub, and any Affiliate of CCBCC under this Agreement to the Partnership shall not exceed for any
particular claim or in the aggregate the respective amounts (if any) actually received by CCBCC and/or Sunbelt and their Affiliates pursuant to any indemnification claim under the CCBCC Prior Purchase Agreements. CCBCC Sub shall cause each of CCBCC
and each of its Affiliates to use its good faith efforts to enforce its rights of indemnification under the CCBCC Prior Purchase Agreements.
 
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  21.5    Mechanics of Indemnification.

(a)       In the event of any Loss, the Partners shall evaluate (in cooperation with Sunbelt
and CCBCC Sub) whether indemnification with respect to such Loss is available under the CCBCC Prior Purchase Agreements. If the Partnership determines that such indemnification may be available, the Partners shall cause the Partnership to notify
CCBCC and Sunbelt. The Partners shall use good faith efforts to cause the Partnership to notify CCBCC and Sunbelt of any such Loss within the period for which an indemnification claim can be made under the appropriate CCBCC Prior Purchase Agreement.
Upon the receipt of such notice, CCBCC or Sunbelt shall promptly notify the sellers under the applicable CCBCC Prior Purchase Agreement of the Loss or claim and shall make a claim of indemnification with respect to such Loss or claim against the
sellers under such CCBCC Prior Purchase Agreement. Upon the request of either Partner, CCBCC will negotiate with the sellers under such CCBCC Prior Purchase Agreement for such indemnification, provided that both Partners shall have the right to
participate fully in such negotiations and provided further that CCBCC shall not settle the claim without the approval of all the members of the Executive Committee, which shall not be unreasonably delayed or withheld. If it is necessary or
appropriate, in the reasonable judgment of the Executive Committee, for CCBCC or Sunbelt to bring an action against the sellers under such CCBCC Prior Purchase Agreement to enforce the right to indemnification contained in such CCBCC Prior Purchase
Agreement, then CCBCC or Sunbelt, as the case may be, shall institute such action as soon as practicable following any request of the Executive Committee with counsel selected by CCBCC and approved by the Executive Committee. Such counsel shall
operate pursuant to the joint instructions of CCBCC and the Executive Committee. The Partners will cause the Partnership to reimburse, defend, indemnify and hold CCBCC and Sunbelt harmless from and against any Losses or claims suffered by CCBCC or
Sunbelt as a result of the institution of such action, including the cost associated with any counterclaim.
 (b)        Each Partner shall be notified of, and have the right to participate in, any such action instituted by CCBCC or Sunbelt. The Partners will cause the Partnership to pay the costs
of CCBCC and Sunbelt in connection with any such action promptly following receipt of invoices and other reasonable documentation of such costs.
 21.6    Method of Asserting Claims. All claims by the Partnership against CCBCC, CCBCC Sub or Sunbelt for Losses shall be asserted and resolved as
follows:
 (a)       if the Partnership has a claim for Loss that does not involve a
claim or demand being asserted against or sought to be collected from the Partnership by a third party, the Partnership shall promptly notify CCBCC Sub of such claim or demand, specifying the nature of such claim or demand and the
 
-30-

  amount or the estimated amount thereof (which estimate shall not be conclusive of the final amount of such claim and demand) to the extent then feasible (the
“Claim Notice”). If CCBCC Sub does not notify the Partnership within 60 days from the receipt of the Claim Notice that it disputes such claim, the amount of such claim shall be conclusively deemed a Loss; and
 (b)       nothing herein shall be deemed to prevent the Partnership from making a claim for an
indemnifiable Loss hereunder for potential or contingent claims or demands provided the Claim Notice sets forth the specific basis for any such potential or contingent claim or demand to the extent then feasible and the Partnership has reasonable
grounds to believe that such claim or demand may be made.
 21.7    Conditions of Indemnification
with Respect to Third Party Claims. The obligations and liabilities of CCBCC Sub with respect to Third Party claims against the Partnership which are subject to indemnification hereunder shall be subject to the following
terms and conditions:
 (a)       The Partnership will give CCBCC Sub prompt notice
of such claim, and CCBCC Sub, or an Affiliate of CCBCC, as the case may be, will assume the defense thereof by representatives chosen by it, provided, however, that the Partnership or any Partner shall be entitled to participate in the defense of
such claim and to employ counsel at its own expense to assist in the handling of such claim;
 (b)       if CCBCC Sub, within a reasonable time after notice of any such claim, fails to assume the defense thereof, the Partnership shall (upon further notice to CCBCC Sub) have the right
to undertake the defense, compromise or settlement or such claim on behalf of, for the account and risk of, and at the expense of CCBCC Sub, subject to the right of CCBCC Sub to assume the defense of such claim at any time prior to the settlement,
compromise or final determination thereof; and
 (c)       The Partnership shall
provide CCBCC Sub with such assistance (without charge) as may reasonably be requested by CCBCC Sub or such Affiliate of CCBCC in connection with any indemnification or defense provided for herein, including, with limitation, providing the
indemnifying party with such information, documents and records and reasonable access to the services of and consultations with such personnel of the Partnership as the indemnifying party shall deem necessary (provided that such access shall not
unreasonably interfere with the performance of the duties performed by or responsibilities of such personnel).
 Section 22.    Confidentiality.
 22.1.   Confidentiality. The Partners acknowledge that each of them may be required to disclose Confidential Information to
 
-31-

  governmental agencies or authorities by law, upon the advice of counsel, and each shall endeavor to limit disclosure to that purpose. Each Partner will give
the other prior written notice of any disclosure pursuant to this paragraph, which notice shall specify the substance of any such disclosure.
 22.2    Identification. Each party hereto will take appropriate steps to enable the other party hereto to identify the information that should be protected as Confidential
Information. Accordingly, each party shall legend or otherwise designate as proprietary any material furnished to the other party if any Confidential Information is included. In addition, any information involving Confidential Information that is
imparted orally shall be identified as proprietary.
 22.3    Acknowledgment of Confidential
Information. Each party receiving Confidential Information (the “Receiving Party”) recognizes and acknowledges (a) that Confidential Information of the other party may be commercially valuable proprietary products
of such party, the design and development of which may have involved the expenditure of substantial amounts of money and the use of skilled development experts over a long period of time and which afford such party a commercial advantage over its
competitors; (b) that the loss of this competitive advantage due to unauthorized disclosure or use of Confidential Information of such party may cause great injury and harm to such party; and (c) that the restrictions imposed upon the parties under
this Agreement are necessary to protect the secrecy of Confidential Information and to prevent the occurrence of such injury and harm.
 22.4    Nondisclosure. Each Receiving Party agrees that it will not, without the prior written consent of the party from whom such Confidential Information was obtained (the
“Disclosing Party”), disclose, divulge or permit any unauthorized person to obtain any Confidential Information disclosed by the Disclosing Party (whether or not such Confidential Information is in written or tangible form) for as long as
the pertinent information or data remain Confidential Information. The Receiving Party hereby agrees to indemnify and hold harmless the Disclosing Party from and against any and all damage, loss, liability and expense (including, without limitation,
reasonable expenses of investigation and reasonable attorneys’ fees and expenses) arising from any such unauthorized disclosure by the Receiving Party or its personnel. The Receiving Party agrees that it will use any Confidential Information
disclosed by the Disclosing Party hereunder (whether or not such Confidential Information is in written or tangible form) only for purposes of the business of the Partnership as contemplated by the Partnership Agreement, for as long as the pertinent
information or data remain Confidential Information. The Receiving Party hereby agrees to indemnify, defend and hold harmless the Disclosing Party from and against any Loss arising from any such unauthorized disclosure by the Receiving Party or its
personnel.
 
-32-

  22.5    Security. To protect the Confidential
Information of the parties, each party shall adopt basic security measures of the kind commonly observed in industries in the United States of America that rely extensively on proprietary information. Security measures, to the extent appropriate,
shall include physical security measures, restrictions on access by unauthorized personnel, use of confidentiality agreements with personnel, legending, systematic segregation, and appropriate record retention systems.
 22.6    Competitively Sensitive Information. Notwithstanding the foregoing, in providing
information hereunder, each party hereto will take care, and will ensure that its respective representatives take care, to avoid the overbroad disclosure of competitively sensitive financial, operating or similar data, if any, as to which disclosure
would have adverse consequences under applicable laws, including federal and state antitrust laws. Appropriate procedures will be followed by the Partnership and the Partners to limit the disclosure of competitively sensitive data, if
any.
 22.7.   Obligations of Partnership. The Partners agree that the
provisions of this Section 22 shall apply to the Partnership and agree to cause the Partnership to comply with the provisions of this Section 22.
 Section 23.    Indemnification; Contribution.
 23.1.   Limitation on Liability of Partners. Neither a Partner nor any shareholder, officer, director, employee, agent or affiliate of such Partner shall be liable or accountable in
damages or otherwise to the Partnership or to any other person for any error in judgment or any mistake of fact or law or for anything that such Partner, shareholder, officer, director, employee, agent or affiliate may do or refrain from doing
hereafter, whether in its capacity as a Partner, as a member of the Executive Committee or the Finance Committee or any subcommittee thereof, as an officer of the Partnership or otherwise, for and on behalf of the Partnership and in furtherance of
the Partnership’s business, except in the case of its or his willful misconduct or bad faith in performing or failing to perform its or his duties hereunder.
 23.2.   Indemnification. To the fullest extent permitted by law, the Partnership shall indemnify each Partner and its shareholders, officers, directors,
employees, agents and affiliates from and against any and all Losses that may be imposed upon, incurred by, or asserted against such Partner, shareholder, officer, director, employee, agent or affiliate in any way relating to or arising out of any
action or inaction on the part of the Partnership or such Partner, shareholder, officer, director, employee, agent or affiliate, whether in its or his capacity as a Partner, as a member of the Executive
 
-33-

  Committee or the Finance Committee or any subcommittee thereof, as an officer of the Partnership or otherwise, for and on behalf of the Partnership and in
furtherance of the Partnership’s business; provided, however, that such Partner, shareholder, officer, director, employee, agent or affiliate reasonably believed that its or his action or omission was in the best interests of the Partnership
and, in addition, with respect to any criminal action or proceeding, had no reasonable cause to believe that its or his conduct was unlawful.
 23.3.   Contribution. If any Partner is required to pay any liability or obligation of the Partnership as a result of its status as a general partner of the
Partnership, the other Partner shall pay to such Partner upon demand an amount equal to the other Partner’s pro rata share of such liability or obligation based on the other Partner’s percentage Interest in the Partnership, unless such
liability or obligation was caused by the paying Partner acting in breach of its obligations hereunder.
 Section 24.    Dispute Resolution.
 24.1.   Attempts to Resolve. All disputes and differences which may arise out of or in connection with or with respect to this Agreement will be settled as far as possible by means of negotiations between the members of the
Executive Committee. Any such dispute which cannot be resolved by the Executive Committee after two meetings of the Executive Committee may be referred by any member of the Executive Committee to KO’s Chief Executive Officer and CCBCC’s
Chief Executive Officer for resolution. If said senior executive officers of the Partners are unable to resolve such matter within sixty (60) days of such referral, then either party may submit the dispute to arbitration in accordance with Section
24.2 of this Agreement for a binding resolution thereof.
 24.2.   Arbitration. Except as provided in Section 24.5 hereof, any dispute, controversy or claim arising out of or relating to this Agreement or the breach, termination or validity thereof which cannot be resolved by the parties pursuant to Section 24.1 hereof
shall be settled by arbitration in accordance with the Arbitration Rules of the American Arbitration Association in effect on the date of this Agreement (the “Rules”) as modified in this Article. The arbitration shall be held in Atlanta,
Georgia.
 There shall be three arbitrators of whom each party shall select one within 15 days following respondent’s receipt of claimant’s notice of
arbitration and statement of claim. The two party-appointed arbitrators shall select a third arbitrator to serve as presiding arbitrator within 15 days of the appointment of the second arbitrator; provided, however, that in no event shall such
arbitrators be residents of or maintain a place of business in the Atlanta, Georgia, Charlotte, North
 
-34-

  Carolina or Chattanooga, Tennessee Standard Metropolitan Statistical Areas. The appointing authority shall be the Atlanta Office of the American Arbitration
Association.
 24.3    Claims and Judgment. Within 20 days of the
respondent’s receipt of the claimant’s notice of arbitration and statement of claim, the respondent shall serve the claimant with its statement of defense and any counterclaims. Within 20 days of claimant’s receipt of the
respondent’s statement of defense and counterclaims, the claimant shall serve its statement of defense to any counterclaims or set-offs asserted by the respondent. The tribunal shall permit and facilitate such prehearing discovery and exchange
of documents and information to which the parties in writing agree or which it determines is relevant to the dispute between the parties as is appropriate taking into account the needs of the parties and the desirability of making discovery
expeditious and cost-effective. All discovery shall be completed within 45 days from the date on which the respondent communicates its statement of defense and counterclaims, if any, to the claimant. The hearing shall be held no later than 90 days
following the selection of the presiding arbitrator. Any arbitration award shall be rendered in U.S. dollars, with appropriate interest as determined by the tribunal. Judgment on any award shall be entered in any court having jurisdiction
thereof.
 24.4.   Submission to Jurisdiction. For purposes of disputes
arising under this Agreement, the parties hereto submit themselves to the jurisdiction of the state and federal courts located in Atlanta, Georgia or Charlotte, North Carolina with respect to the enforcement of any arbitration award, provided
however, that nothing contained herein shall be deemed a waiver by either party of any right it may have to (i) remove a cause of action brought in state court to a federal court or (ii) petition a court for a change of venue to or from Atlanta,
Georgia or Charlotte, North Carolina. Each of the parties hereby consents to the service of process by registered mail at its address set forth below and agrees that its submission to jurisdiction and its consent to service of process by mail is
made for the express benefit of the other party. The arbitration shall be governed by the Federal Arbitration Act, 9 U.S.C. §§ 1-16, 201-208.
 24.5.   Right to Additional Remedies. Notwithstanding anything to the contrary in this Article, in the event any intellectual property (including Confidential
Information) is used in violation of the terms of this Agreement, each party shall be entitled, in addition to the remedy of arbitration set forth herein, to apply immediately to any court of competent jurisdiction for immediate injunctive relief.
Each party hereby submits itself to the jurisdiction of the state and federal courts located in Atlanta, Georgia for any such relief or for the enforcement of any arbitration award against such party.
 
-35-

  Section 25.    Miscellaneous.
 25.1.   Further Assurances. Each Partner and the Partnership will execute and deliver all
such other and additional instruments and documents and do all such other acts and things as may be necessary to more fully effectuate this Agreement and to carry on the business of the Partnership.
 25.2.   Notices. Any notice, request, instruction or other document to be given hereunder by any party hereto to any
other Person shall be in writing and delivered personally or by mail or any express mail service to the addresses set forth below.
 (a)   If to KO Sub:
 The Coca-Cola Company
One Coca-Cola Plaza

Atlanta, Georgia 30313 
Attention: Chief Financial Officer 
Telecopy No.: (404) 676-6275
 with a copy to:
 The Coca-Cola Company
One Coca-Cola Plaza 
Atlanta, Georgia 30313 
Attention: General Counsel 
Telecopy No.: (404) 676-6209
 (b)   If to Affiliated, Fayetteville, Palmetto 
or Ventures:
 Coca-Cola Bottling Co. Consolidated 
1900 Rexford
Road
Charlotte, North Carolina 28211 
Attention: Chief Financial Officer 
Telecopy No.: (704) 551-4451
 with a copy to:
 Witt, Gaither & Whitaker
1100 American National Bank Building 
Chattanooga, Tennessee 37402
Attention: Ralph M. Killebrew, Jr., Esq. 
Telecopy No.: (615) 266-4138
 or to such other address
or number for a party as shall be specified by like notice. The parties shall use reasonable efforts to cause all notices to also be sent by telecopy transmission to the telecopy numbers set forth above or such other numbers as shall be given by
notice to the other parties hereto. Any notice which is delivered personally in the manner provided herein shall be deemed to have been duly given to the party to
 
-36-

  whom it is directed upon actual receipt by such party or its agent. Any notice which is addressed and mailed in the manner herein provided shall be
conclusively presumed to have been duly given to the party to which it is addressed at the close business, local time of the recipient, on the fourth Business Day after the day it is so placed in the mail or, if earlier, the time of actual
receipt.
 25.3.   Captions. The captions and section numbers appearing in
this Agreement are inserted only as a matter of convenience and in no way define, limit, construe or otherwise describe the scope or intent of the sections of this Agreement.
 25.4.   Bindinq Effect; Assignment. This Agreement shall inure to the benefit of and be binding upon the Partners and their successors
and permitted assigns. Except as provided in Section 16, no Partner shall assign or transfer any right or obligation hereunder whether by operation of law or otherwise without the prior written consent of the other Partners. Any such attempted
assignment or transfer in violation of this Section 25.4 shall be void and without legal effect. Notwithstanding the foregoing, KO Sub shall have the right to assign all or any of its rights and obligations hereunder to any wholly owned subsidiary
of KO, and CCBCC Sub shall have the right to assign all or any of its rights and obligations hereunder to any wholly owned subsidiary of CCBCC, in each case as provided in Section 16.3.
 25.5    Entire Agreement, No License, Amendments.
 (a)       This Agreement, together with the Exhibits hereto and the DAA Agreement, constitutes the entire understanding of the Partners with
respect to the subject matter hereof and supersedes all prior negotiations and understandings between them, whether written or oral; provided, however, that nothing contained in this Agreement affects, supersedes or amends the Bottling Agreements
with KO or any other agreement with KO executed or delivered in connection herewith.
 (b)       Nothing contained herein shall be deemed or construed to create an express or implied grant or right of license by KO in favor of the Partnership or CCBCC.
 (c)       No amendment to this Agreement shall be effective unless it is in writing and executed by the
Partners.
 25.6.   Severability. If any one or more provisions of this
Agreement shall be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired; provided, however, that in such case the
Partners agree to use their best efforts to achieve the purpose of the invalid provision by a new legally valid provision.
 
-37-

  25.7.   No Waiver. No failure or delay on the part of
any Partner in the exercise of any right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right preclude any other or further exercise thereof or of any other right. All rights and remedies under this
Agreement are cumulative to, and not exclusive of, any rights or remedies otherwise available.
 25.8.   Necessary Measures. The Partners shall in a timely manner and as required from time to time take all such actions as may be necessary or appropriate to cause the Partnership to implement the transactions contemplated
by this Agreement and to ensure that the Partnership takes all such actions as may be necessary to give full effect to the provisions of this Agreement, to cause the Partnership to comply with applicable law, and to abstain from taking any actions
which would contravene the intent of the provisions of this Agreement.
 25.9.   Counterparts. This Agreement may be executed in counterparts.
 25.10. Waiver of
Partition. The Partners hereby irrevocably waive during the term of this Agreement any right to maintain any action for partition with respect to any property now or hereafter subject to this Agreement.
 25.11. Governinq Law; Construction. This Agreement shall be construed in accordance with and governed by the laws of, the State of Delaware, without giving effect to the principles of conflicts of law thereof. No provision of this Agreement or any related document shall be construed against or interpreted to
the disadvantage of any party hereto by any court or any governmental or judicial authority by reason of such party’s having or being deemed to have structured or drafted such provision.
 25.12. Public Announcements. The Partners agree that they will not, and will cause the Partnership
not to, make any public announcement about the transactions contemplated by this Agreement unless and until both parties agree to the content and manner of dissemination of such public announcement. If counsel for either party advises such party
that disclosure is required under applicable securities laws or rules of any stock exchange or by any court with the required jurisdiction, then such other party shall promptly notify the other in order to permit the other to obtain an appropriate
protective order or to otherwise limit disclosure. Any disclosure made pursuant to the preceding sentence shall be limited to the specific disclosure required by applicable laws and rules. Any party making disclosure hereunder shall also provide a
copy of such disclosure to the other party.
 25.13. Third Party Beneficiaries. No
provision of this Agreement shall be construed to create any rights or benefits in any person, other than the Partners, and their respective successors and assigns, except as provided in Section 21 hereof.
 
-38-

  IN WITNESS WHEREOF, the parties hereto have executed this Partnership Agreement as of the date and year first written above.

 

	  
 	  
 	 CAROLINA COCA-COLA BOTTLING 
 INVESTMENTS, INC.
 
	 
 
 
 	  
 	 By: 
 	 
 /s/ TIMOTHY J. DOYLE
 
	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	 Timothy J. Doyle, Vice President
 
	  
 	  
 	 
 COCA-COLA VENTURES, INC.
 
	 
 
 
 	  
 	 By: 
 	 
 /s/ DAVID V. SINGER
 
	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	 David V. Singer, Vice President
 
	  
 	  
 	 
 COCA-COLA BOTTLING CO. AFFILIATED, INC.
 
	 
 
 
 	  
 	 By: 
 	 
 /s/ DAVID V. SINGER
 
	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	 David V. Singer, Vice President
 
	  
 	  
 	 
 FAYETTEVILLE COCA-COLA BOTTLING 
 COMPANY
 
	 
 
 
 	  
 	 By: 
 	 
 /s/ DAVID V. SINGER
 
	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	 David V. Singer, Vice President
 
	  
 	  
 	 
 PALMETTO BOTTLING COMPANY
 
	 
 
 
 	  
 	 By: 
 	 
 /s/ DAVID V. SINGER
 
	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	 David V. Singer, Vice President
 

 
-39-

  SCHEDULES AND EXHIBITS
 NOT
FILED WITH THIS REPORT
  

	 Exhibit 11.1(d)
 	  
 	 - Executive Committee Actions
 
	  
 	  
 	  
 
	 Exhibit 11.5(a)
 	  
 	 - 1993 Annual Business Plan
 
	  
 	  
 	  
 
	 Schedule 7.1(b)-1
 	  
 	 - Palmetto Contributed Assets
 
	  
 	  
 	  
 
	 Schedule 7.1(b)-2
 	  
 	 - Affiliated Contributed Assets
 
	  
 	  
 	  
 
	 Schedule 7.1(b)-3
 	  
 	 - Fayetteville Contributed Assets
 
	  
 	  
 	  
 
	 Schedule 21.1(c)
 	  
 	 - Violations of Contracts, etc.
 
	  
 	  
 	  
 
	 Schedule 21.1(e)
 	  
 	 - Assigned Contracts
 
	  
 	  
 	  
 
	 Schedule 21.1(f)
 	  
 	 - Actions under CCBCC Prior Purchase Agreements
 
	  
 	  
 	  
 
	 Schedule 21.1(g)
 	  
 	 - Bringdown of CCBCC Prior Purchase Agreements
 
	  
 	  
 	  
 
	 Schedule 21.1(h)
 	  
 	 - Actions Since December 19, 1991
 
	  
 	  
 	  
 
	 Schedule 21.3(a)
 	  
 	 - Assumed LiabilitiesMANAGEMENT AGREEMENT

  Exhibit 10.8
 MANAGEMENT
AGREEMENT
 This Management Agreement (“Agreement”) made and entered into as of the 2nd day of
July, 1993, by and among Coca-Cola Bottling Co. Consolidated, a Delaware corporation (“Manager”); and Carolina Coca-Cola Bottling Partnership, a Delaware general partnership (“CCCB Partnership”); CCBCC of Wilmington, Inc., a Delaware corporation wholly owned by CCCB Partnership (“Wilmington”)
(CCCB Partnership and Wilmington are hereby sometimes jointly and severally referred to as the “Partnership”); Carolina
Coca-Cola Bottling Investments, Inc., a Delaware corporation and wholly owned subsidiary of The Coca-Cola Company (“KO Sub”); Coca-Cola Ventures, Inc., a Delaware corporation and wholly owned
subsidiary of Manager (“Ventures”) and Palmetto Bottling Company, a South Carolina corporation (“Palmetto”) and wholly owned subsidiary of Manager (KO Sub, Ventures and Palmetto are
herein collectively referred to as “Partners” and sometimes referred to individually as “Partner”).
 W I T N E S S E T H:
 NOW, THEREFORE,
in consideration of the mutual promises, obligations and agreements contained herein, the parties hereto, intending to be legally bound, do hereby agree as follows:
 Section 1.       Definitions.
 1.01    Defined Terms. Except as otherwise provided in this Agreement, defined
terms shall have the meanings set forth in the DAA Agreement. “DAA Agreement” shall mean the Definition and Adjustment Agreement of even date herewith among The Coca-Cola Company (“KO”), Manager, KO Sub, Ventures, Sunbelt,
Coastal, Eastern, Carolina Holding and certain other Affiliates of KO and Manager.
 1.02    Other Terms. The following terms shall have the meanings set forth in the Section of this Agreement indicated below:
  

	 Defined term
 	  
 	 Section
 	  
 
	  
 	  
 	  
 	  
 
	 Agreement
 	  
 	 Preamble
 	  
 
	 CCCB Partnership
 	  
 	 Preamble
 	  
 
	 Claimant
 	  
 	 Section 9.03(a)
 	  
 
	 Claim
 	  
 	 Section 9.02
 	  
 
	 CPI
 	  
 	 Section 5.01
 	  
 
	 Disclosing Party
 	  
 	 Section 8.04
 	  
 
	 Due to/Due from Account
 	  
 	 Section 5.03(e)
 	  
 
	 Environmental Manager
 	  
 	 Section 3.01(c)(4)
 	  
 
	 Environmental Laws
 	  
 	 Section 3.01(c)(4)(i)
 	  
 
	 Equivalent Case
 	  
 	 Section 5.01
 	  
 
	 Expenses
 	  
 	 Section 5.02
 	  
 
	 FICA
 	  
 	 Section 3.02
 	  
 

 
 

   

	 FUTA
 	  
 	 Section 3.02
 	  
 
	 Indemnitee
 	  
 	 Section 9.02
 	  
 
	 KO
 	  
 	 Section 1.01
 	  
 
	 KO Sub
 	  
 	 Preamble
 	  
 
	 Manager
 	  
 	 Preamble
 	  
 
	 Management Fee
 	  
 	 Section 5.01
 	  
 
	 Notified Party
 	  
 	 Section 9.03(a)
 	  
 
	 Partner(s)
 	  
 	 Preamble
 	  
 
	 Partnership
 	  
 	 Preamble
 	  
 
	 Receiving Party
 	  
 	 Section 8.04
 	  
 
	 Revolver
 	  
 	 Section 5.03(d)
 	  
 
	 Rules
 	  
 	 Section 9.02
 	  
 
	 Sales Branch Employee(s)
 	  
 	 Section 3.01(c)(2)
 	  
 
	 Wilmington
 	  
 	 Preamble
 	  
 

 
 Section 2.       Appointment of Manager.
 2.01    Appointment of and Acceptance by Manager. The
Partnership hereby appoints and retains Manager as the exclusive manager of the Business effective as of the Closing Date and authorizes Manager to supervise, direct and control, pursuant to the direction and control of the
Executive Committee, the day-to-day operation of the Business for the term of this Agreement. Manager shall have the right to enter into contracts in the ordinary course of business and thereby bind the Partnership; provided that such contracts (i)
relate to and are necessary for the performance by Manager of its services hereunder and (ii) do not relate to matters set forth in Schedule 11.1(d) of the Partnership Agreement with respect to which the Executive Committee has not otherwise
expressly granted Manager the authority to act. Manager hereby accepts such appointment and agrees to use its best efforts in the performance of its duties in accordance with the terms and conditions hereinafter set forth. In providing the services
described herein, Manager covenants and agrees to use its best efforts to provide and employ a sufficient number of personnel with adequate training and experience to perform such duties competently and in a businesslike manner in such a way as to
cause the operations of the Partnership to be carried on efficiently and in the best interests of the Partnership. In providing such services, Manager shall be under the direction and control of the Executive Committee as to the policies and goals
of the Partnership and as to all significant management decisions not otherwise delegated to Manager hereunder.
 2.02    Non-exclusive Service. It is understood and agreed that nothing in this Agreement shall confer upon the Partnership an exclusive right to Manager’s service.
Manager may contract with others for the provision of expertise and services outside the Territory similar to those to be provided to the Partnership as contemplated herein.
 
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  Section 3.       Services and Responsibilities of Manager.
 3.01    Primary Services and Responsibilities. Within the scope of the authority granted to it under this Agreement and subject to any limitations provided herein, Manager will undertake as manager to support the
Partnership in meeting the operating requirements of its license(s), as well as all other operating standards and the achievement of the Partnership’s financial objectives. Without limiting the foregoing, Manager will act as a manager of the
Partnership under the Partnership Agreement. Manager acknowledges that it has received a true and complete copy of the Partnership Agreement and understands its obligations as Manager thereunder. Subject to any provisions to the contrary set forth
in the Partnership Agreement, Manager is hereby authorized to and shall provide the following services or cause the following services to be performed under its supervision:
 (a)       Business/Finance.
 (1)       Manager will provide accounting, tax, treasury and internal auditing services in connection with the financial management of the Partnership’s business
including the services of Manager set forth in Section 13 of the Partnership Agreement. As contemplated by Section 11.5 of the Partnership Agreement, Manager will develop annual projections of volume, operating revenues, required capital
expenditures, operating expenses and cash flow and recommend and present such projections to the Finance Committee for its consideration as the basis for the Annual Business Plan no later than sixty (60) days prior to the beginning of the
Partnership’s fiscal year that is the subject of such projections. The Annual Business Plan for the Partnership’s 1993 fiscal year is attached to the Partnership Agreement as Exhibit 11.5(a).
The Partnership shall deliver a copy of each Annual Business Plan as soon as practicable following adoption thereof by the Executive Committee.
 (2)       Manager will provide necessary treasury management services for the Partnership including the arrangement and administration of financings (subject to
Executive Committee approval) and bank transactions and cash management services including receipt of and responsibility for all income realized by the Partnership and disbursement of funds for satisfaction of the debts, obligations and expenses of
the Partnership.
 (3)       Manager will develop and implement a
comprehensive program of accounting systems and procedures and provide the following functions or prepare the following reports:
 (i)       Accounts Receivable, Credit and Collections including credit approval, billing, collection and cash application.
 
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  (ii)      Accounts Payable functions including
check writing and accounting for paid expense and capital items.
 (iii)     General accounting functions including maintenance of general ledger and monthly financial reporting to the Executive Committee.
 (iv)     Fixed asset record maintenance and accounting.
 (v)      Monthly reports to the Executive Committee (i) comparing actual operating and capital expenditures to those budgeted and set forth in the Annual Business
Plan, (ii) reflecting Expenses billed to the Partnership and (iii) detailing significant management actions taken by Manager.
 (4)       Manager shall handle the federal, state and local tax reporting and filing as well as the implementation of tax
planning and strategies designed to minimize ongoing federal, state and local taxes and user fees. Manager will also handle all tax audits and maintain all Department of Transportation files. Manager will consult with KO and representatives of KO
Sub in connection with the handling of federal income tax reporting and filing, will notify KO and provide a copy of federal income tax returns to KO prior to the filing of such returns and will make its work papers and other tax reports available
to KO and KO Sub upon reasonable request therefor as they become available.
 (5)       Manager will develop an internal audit program establishing adequate procedures necessary to provide accurate internal auditing services.
 (b)      Marketing and Sales.
 (1)       Manager will have overall responsibility to develop a marketing plan and implement the distribution strategy
included in or otherwise contemplated by the Annual Business Plan. In particular, Manager will coordinate marketing activities, programs and funding with the Partnership’s licensors, handle relationships with major customers crossing
territorial boundaries, and develop overall trade relationship strategies (CMAs, etc.). Manager shall perform media purchasing through its in-house advertising agency (Case Advertising) under standard terms, and set advertising budgets subject to
the Annual Business Plan.
 (2)       Manager will provide
regional sales management direction including the establishment of policies and procedures, selection of price, product and package, not materially inconsistent with the Annual Business Plan, and recruiting and training of sales personnel and
coordinate overall cold drink programs.
 
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  (c)       Operations. The major
operational responsibilities of Manager shall be in the areas of Purchasing and Production Management, Human Resource Services, Fleet and Facility Administration Services, Environmental Compliance, Data Processing, Corporate Manufacturing Management
and Risk Management as follows:
 (1)       Purchasing and
Production Management. Manager will select and negotiate with vendors and purchase or, if in the best interest of the Partnership, lease all supplies and capital equipment from such vendors on a
basis similar to that which is available to Manager with respect to its sales branches. Subject to the authorization of the Partnership’s licensors, Manager will supply, or otherwise obtain for the Partnership soft drink product, (i) with
respect to product produced by Manager, at Manager’s fully loaded, standard cost as determined in accordance with Exhibit A, to be adjusted at the end of each fiscal quarter to actual fully loaded
cost provided that the Partnership has received prior written notice of any such adjustment and (ii) with respect to product purchased by Manager, on behalf of the Partnership from a third party, at Manager’s actual cost plus transportation
cost consistent with Manager’s transportation costs incurred with respect to other sales branches standard practices. In each case, actual transportation costs shall be added to product delivered to the Partnership’s warehouses.

(2)       Human Resources.
Manager shall provide overall pay and benefit administration for employees of the Partnership (if any), provide administrative in-house training and develop and implement personnel policies (if applicable) and comprehensive
pay, benefits and incentive programs and packages for all employees. Any necessary labor contract negotiations will be performed by Manager, and Manager will handle the administration of any labor contract (including grievance procedures and
arbitration) and any labor relations disputes or other labor matters. Manager will have the authority and responsibility to appoint legal counsel and to enter into, amend or terminate any employment agreements and consulting and agency agreements
relating to the Partnership. Manager will supplement the Partnership with all additional personnel necessary to operate the Business at the Sales Branch level (“Sales Branch Employees(s)”). In
connection therewith, Manager shall utilize its employees or employees of a wholly owned subsidiary of Manager which have adequate training and experience to perform their duties competently and in a businesslike manner. Manager shall have the right
to substitute one of its employees for a Sales Branch Employee whenever Manager deems such substitution appropriate. Each Sales Branch Employee and Partnership employee shall be subject to all of Manager’s applicable employment policies and
practices (unless otherwise
 
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  restricted by union contracts), and the Partnership shall not have the right to subject any Sales Branch Employees or Partnership
employees to any additional employment policies or practices or other work related rules or regulations (except rules and regulations reasonably related to the health and safety of such employees or required under applicable law) absent
Manager’s express consent to such action. Manager shall provide substantially the same job-related education and training to Sales Branch Employees and Partnership employees as Manager provides to its other Employees who perform the same or
related tasks. Manager shall compensate Sales Branch Employees in accordance with Manager’s standard compensation policies and practices for employees who perform the same or related tasks subject to regional pay differences. Sales Branch
Employees shall be provided with employee benefits no more favorable as a whole than those provided to Manager’s other employees performing the same or related tasks in addition to workers’ compensation, unemployment compensation and all
other benefits which an employer is required to provide for its employees under applicable law. Manager will adopt and enforce at the Partnership Manager’s Code of Business Conduct.
 (3)       Fleet and Facility Administration. Manager will provide overall administration of fleet activities including assessment of required fleet expansion or replacement, acquisition of required equipment and direction of preventative maintenance programs. Manager will provide
ongoing consulting services to assist in efficient route structure using computer models and provide training and consulting services for warehouse layout and management.
 (4)       Environmental Compliance. Manager shall provide
environmental management services, assigning the administration of those systems to an environmental compliance manager on its staff (“Environmental Manager”) and shall assume the following
responsibilities:
 (i)       It is the
responsibility of Manager to assure that all Partnership operations are in compliance with, or exceed, the requirements of all applicable environmental laws, regulations, statutes, ordinances and permit conditions (“Environmental Laws”), and that Partnership operations are conducted to minimize the risk of liability arising under any Environmental Law. In fulfilling that responsibility, Manager shall provide for an
Environmental Manager, who shall, in consultation with Manager, establish environmental management systems, encompassing all of the Partnership’s operations and employees, designed to assure such compliance and to avoid liability for
noncompliance. The official duties of the Environmental Manager shall include, without limitation, (A) assuring proper
 
 
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  operation of established environmental management systems; (B) design, recommendation and implementation of new
environmental management systems; (C) detection of potential environmental compliance exceptions; and (D) briefing Manager on environmental issues on an ongoing basis. Any known or suspected exceptions
to environmental compliance requirements discovered by the Environmental Manager shall be reported immediately to Manager who, in turn, shall notify the Executive Committee of his
findings and ensure that all required corrective actions and all required reports are initiated and completed as soon as possible.
 (ii)      Beginning in 1994, Manager shall request an opinion from legal counsel to the Partnership as to the compliance of all
the Partnership’s operations with all applicable Environmental Laws and the Partnership’s potential exposure to legal liabilities under any Environmental Law. Legal counsel shall, in turn, retain qualified independent, third party
environmental consultants to act as counsel’s agents in conducting an environmental audit of Partnership operations to the degree of detail which, in
counsel’s opinion, is necessary to form the basis of counsel’s legal compliance opinion. All documents of whatever kind generated during the
course of developing and providing the legal opinion, including any materials prepared by legal counsel’s agents, shall be treated, stored and distributed in a manner which maintains the attorney-client privilege for such documents. Whenever counsel concludes that a condition associated with the Partnership’s operations could constitute a violation of an Environmental Law and/or could subject
the Partnership to administrative, civil or criminal prosecution or other potential liability, legal counsel shall bring that conclusion to the attention of the Environmental Manager and Manager.
Manager shall report such conclusion to the Executive Committee and shall, together with the Environmental Manager, establish and implement a corrective action plan and, if required by law, report the
violation as soon as possible. No more than three years shall elapse between any such environmental audit during the terms of the Partnership.
 (5)       Data Processing and Information Services. Manager shall utilize its computer systems to provide
centralized computer operations, including sales data storage and analysis systems as well as vending asset management systems. Manager will perform all required programming (including hand held computers) and arrange for data and voice communication services.
 
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  (6)       Corporate Manufacturing Management. Manager will provide manufacturing administration, quality assurance administration and consumer response
center administration.
 (7)       Risk
Management. Manager shall contract for the purchase of insurance policies on behalf of the Partnership, at coverage levels prescribed by the Executive Committee. A
list of the initial policies and coverage levels thereunder are set forth in Exhibit C hereof. Manager shall, on behalf of the Partnership, cause such policies (or such other policies which are satisfactory to or required by the Executive Committee)
to be maintained during the term of this Agreement.
 3.02  Manager’s Personnel.
All of Manager’s personnel providing services hereunder shall be exclusively employed by Manager or its Affiliates, and Manager shall have the sole right to determine their conditions of employment, working hours,
employment and vacation policies, seniority, promotions and assignments. Manager shall have the exclusive right to hire and fire any such personnel and shall comply with all the laws applicable to the employment of such personnel. Subject to the
provisions of Section 5 below, Manager shall be solely responsible for the compensation of the employees and for all withholding taxes, Federal Insurance Contributions Act (“FICA”) and Federal
Unemployment Tax Act (“FUTA”) taxes, unemployment insurance, workmen’s compensation and any other insurance and fringe benefits with respect to such employees.
 3.03  Limitations on Authority. Notwithstanding anything
contained herein to the contrary, without the express consent of the Executive Committee, Manager shall not permit the Partnership to take or approve any of the actions listed on Exhibit 11.1(d) of the
Partnership Agreement.
 3.04  Books and Records. Manager
shall, upon written request of a member of the Executive Committee, make its books and records with respect to the Business available to the Executive Committee, the Finance Committee, the Partnership or the Partners, at the reasonable request of
any of them. In particular, the Partnership or any Partner shall have access to such books and records at reasonable business hours for the purposes of (i) auditing the actual fully loaded cost of product sold and transportation expenses charged to
the Partnership as contemplated by Section 3.01(c)(1) and Exhibit A, (ii) obtaining information relating to payments made to third parties pursuant to the KO and CCBCC Prior Purchase Agreements and
determining compliance by the Partnership with its obligation sunder the KO and CCBCC Prior Purchase Agreements, (iii) auditing the Management Fee and Expenses charged to the Partnership and (iv) auditing the Due to/Due from Account. The Partnership
shall bear the costs of any independent accounting firm engaged by KO Sub for the purpose of performing the review described in this Section.
 
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  Section 4.       Additional Services Provided by Manager.
 In the course of performing its duties hereunder, Manager may determine
that it is in the best interests of the Partnership to obtain goods, technology or other services from Manager or its Affiliates. The provision of such products and services will be considered to be within the scope of this Agreement and shall be
made available to the Partnership with the approval of the Executive Committee. The price or fees (excluding applicable taxes, and transportation costs which shall be charged to the Partnership at cost) charged by Manager or its Affiliates for such
products and services shall be no less favorable than those charged to other entities by Manager whose business is comparable to that of the Partnership whether or not such entities are Affiliates; provided, however, that under no circumstances
shall Manager be required to charge the Partnership an amount which is less than Manager’s actual cost provided that the provision of such products or services are duly authorized in accordance with this Agreement.
 Section 5.       Partnership
Payments.
 5.01    Management Fee.
In consideration for the services to be provided by Manager pursuant to this Agreement, the Partnership shall pay to Manager a management services fee equal to 20.6¢ per 8 oz. equivalent case (i.e., 192 ounces/case)
of bottles, cans and pre-mix (“Equivalent Case”) sold by the Partnership in the Territory after the Closing Date (the “Management Fee”). Subject to the provisions of Section 7.02, the Management Fee shall be increased for 1996 and 1997 in accordance with the increase in the Urban Wage Earners and Clerical Workers-South-All Items consumer price index published by the U.S.
Department of Labor (“CPI”) for the most recent twelve (12) month period for which statistics are available on January 1, 1996 and January 1, 1997, respectively. Thereafter, unless the parties
agree otherwise, the Management Fee will be increased for each subsequent year at a rate equal to one-half (1/2) of the increase in the
CPI for the most recent twelve (12) month period for which statistics are available as of January 1 of such year.
 5.02    Expenses. The expenses incurred by the Partnership (or by the Manager on behalf of the Partnership) as contemplated in the Annual Business Plan shall be deemed to
be expenses of the Partnership payable in addition to the Management Fee. Such expenses will be subject to audit as provided in Section 3.04 hereof. No expense other than those accounted for in, or allowed by, the Annual Business Plan shall be
payable by the Partnership unless such expense is (i) less than $50,000 and is approved by the Finance Committee or (ii) otherwise approved by the Executive Committee (all expenses payable by the Partnership pursuant to this Section 5.02 are
referred to herein as “Expenses”). The Partnership agrees that it will cause the (i) Finance Committee to convene a meeting to consider approval of any such expense no later than five (5)
Business Days after receipt of written request
 
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  for approval from Manager or (ii) Executive Committee to convene a meeting to consider approval of any such expense no later than fifteen (15) Business Days
after receipt of written request for approval from Manager, whichever is relevant. By way of illustration, and subject to being included in the Annual Business Plan or otherwise specifically authorized in this Section 5.02, the following Expenses
shall be the types of Expenses which will be addressed in the Annual Business Plan and generally payable by or on behalf of the Partnership:
 (a)       Entity and Sales Branch Expenses. The Partnership will incur direct expenses related to its form of entity or Business in the form of fees or taxes to
third parties such as state or local governments. In addition, each Sales Branch within the Territory will incur certain specific expenses directly related to the routine operation of the Sales Branch. Such expenses are set forth on Exhibit C.
 (b)      Division Expenses.
Manager shall charge the Partnership for certain expenses incurred at Manager’s Division level on a per case basis. These expenses will be Division sales management expenses, vender service expenses, fleet expenses and
post-mix management services expenses, as set forth on Exhibit D.
 (c)       Refurbishment Expense. Manager will charge the Partnership its actual average cost at the center in which the refurbishment is performed of refurbishing
items listed on Exhibit E owned or leased by the Partnership including the cost of delivery and pickup of cold drink equipment at Manager’s standard rates.
 (d)      Miscellaneous Expense. Other reasonable and necessary expenses directly related to the
Partnership’s business operations or administration thereof which are set forth on Exhibit F.
 5.03    Payments, Reconciliation and Reimbursement.
 (a)       Estimated Monthly Payments. Subject to the provisions of Section 7.01 hereof, the estimated Management Fee
and Expenses to be paid by the Partnership as set forth in the Annual Business Plan shall be paid as follows: the Partnership shall pay to Manager on or before the 15th of each month during each fiscal year of the Partnership a monthly
disbursement equal to the sum of (i) the estimated Management Fee for such month, and (ii) one-twelfth (1/12th) (or, in the
case of the Partnership’s 1993 fiscal year, one-sixth (1/6)) of the estimated fiscal year Division Expenses and Miscellaneous
Expenses all as set forth in the Annual Business Plan.
 (b)      Quarterly
Reconciliation of Payments. On or before the end of each fiscal quarter, beginning with the second fiscal quarter following the Closing Date, Manager will furnish to the Partners a statement reconciling actual Equivalent Case
sales and Expenses for the immediately preceding fiscal quarter against the
 
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  estimated amounts used in determining the amount of the monthly disbursement. For each quarter, the Partnership (acting through the Executive or Finance
Committee) and Manager shall agree upon a true-up adjustment in such amount as is necessary to ensure that the aggregate estimated monthly payments paid to Manager for the reconciled fiscal quarter are not more than or less than the amounts that
would have been paid had the actual Management Fee and relevant Expenses been known to the parties at the time the monthly advances were paid, with the amount of such adjustment bearing interest at the Composite Rate in each case from the date any
such adjusted item is paid to the date of reconciliation. Any refund due from Manager to the Partnership, and any additional payment due from the Partnership to Manager, as a result of this reconciliation shall upon determination thereof be debited/
credited, as appropriate, to the Due to/Due from Account described hereinbelow.
 (c)       Payment of Invoiced Items. Manager shall be entitled to payment from the Partnership for all Entity and Sales Branch Expenses, Refurbishment Expenses and
Miscellaneous Expenses not otherwise subject to estimated payments as provided in Section 5.03(a), within ten (10) days following delivery of invoice and make appropriate credit entries in respect thereof in the Due to/ Due from Account.

(d)      Due to/Due From Account. Following the Closing Date, Manager
shall collect Partnership receipts in various bank accounts and debit such amounts to a due to/due from account (the “Due to/Due from Account”). All disbursements made by Manager on behalf of the Partnership shall be credited to the Due
to/Due from Account. Interest shall accrue at the Composite Rate on a monthly basis on the average of (i) the net balance of such Account on the last day of the prior fiscal month and (ii) the net balance of such Account on the last day of the
subject fiscal month. So long as the Due to/Due from Account has a net deficit or net surplus balance less than Five Million Dollars ($5,000,000), Manager’s Treasurer, at her/his discretion, may (i) in the event of a deficit balance, draw on
the Partnership revolving line of credit described in Section 6.01(e) hereof (“Revolver”) or (ii) in the event of a surplus balance, cause a payment to be made and applied to a reduction of the outstanding Partnership indebtedness, in each
case in an amount up to the amount of such account balance. In the event that the Partnership has a deficit balance of Five Million Dollars ($5,000,000) or more, Manager’s Treasurer may draw on the Revolver to eliminate the deficit balance. In
the event that the Partnership has a surplus balance of Five Million Dollars ($5,000,000) or more, Manager’s Treasurer shall cause a payment in the amount of such surplus balance to be applied to a reduction of outstanding Partnership
indebtedness. Manager shall immediately notify the Partners any time a draw is made on the Revolver. Nothing herein shall require that a segregated bank account be maintained for the Partnership, provided that Manager’s system of accounting for
receipts and disbursements is reasonably satisfactory to the Executive Committee. Manager will generate 
 
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  and maintain monthly reports detailing all debits and credits to the Due to/Due from Account, including a calculation of any interest charges. Such reports
and other detail regarding the debits and credits to the Due to/Due from Account will be made available upon the reasonable request of any member of the Executive Committee or the Finance Committee.
 5.04    Management Fee Distinguished from Distributions. All fees and other
payments paid by the Partnership to Manager under this Section 5 shall be considered separate from, and shall not constitute, distributions paid to Manager by the Partnership from accrued profits or cash flow.
 Section 6.       Obligations of the
Partnership.
 6.01    Duties of the Partnership.
In addition to the obligations imposed upon the Partnership elsewhere in this Agreement and commencing on the Closing Date, the Partnership shall:
 (a)       provide or cause to be provided at no charge to Manager sufficient secure building space, furniture facilities and office equipment to
enable Manager’s on-site personnel to carry out their obligations under this Agreement;
 (b)      assist Manager in obtaining, or cause to be obtained any permits, applications, authorizations or forms required by or from the federal, state or local governments for the specific
services areas or which are, in the opinion of the Executive Committee, desirable;
 (c)       afford Manager’s personnel unlimited and unrestricted access to all the Partnership’s facilities subject only to such routine security precautions as the Partnership may
impose in the nature of its business requirements;
 (d)      cooperate with Manager and
direct all the Partnership personnel (if any) to extend maximum cooperation to Manager; and 
 
(e)       maintain a revolving line of credit or other financing sufficient in the reasonable judgment of the Executive Committee to satisfy the Partnership’s anticipated peak seasonal
working capital needs.
 
 Section 7.       Term.
 7.01    Effective Date. This Agreement shall become effective as of the Closing Date. If the Aiken, South Carolina KO bottling franchise and related assets are transferred
to the Partnership on or prior to August 30, 1993, Manager shall be entitled to receive the Management Fee with respect to all Equivalent Cases sold by Palmetto in such territory after the Closing Date.
 
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  7.02    Duration. Unless terminated
pursuant to Section 7.03 below, this Agreement shall continue in full force and effect for a term of twenty-five (25) years after the Closing Date; provided that following December 31, 1995 the parties will negotiate in good faith to alter the terms
and conditions of the Agreement to reflect the then current agreements of the parties.
 7.03    Early Termination. This Agreement shall terminate early as follows:
 (a)       Breach. If at any time either party to this Agreement shall default in the performance of any of its. material
obligations under this Agreement and such default or breach shall continue for a period of forty-five (45) days after the other party has given notice to the aforementioned party specifying such default or breach and requiring it to be remedied,
then the party giving said notice shall have the right to terminate this Agreement on forty-five (45) days written notice if the default remains uncured for such additional forty-five (45) days following such notice; provided, however, that (i) the
failure of the Partnership to meet the projections set forth in the Annual Business Plan shall in and of itself not be deemed to be a breach of this Agreement by Manager and (ii) a default under Section 5.03(d) shall not be deemed a breach of a
material obligation unless such amount in dispute equals or exceeds Ten Million Dollars ($10,000,000); provided, further, Manager shall not have the right to terminate this Agreement if the Partnership’s breach hereof is due primarily to any
action or omission by CCBCC Sub. 
 (b)      Bankruptcy Decree. If a decree or order of a court having jurisdiction has been entered adjudicating a party bankrupt, insolvent, or approving a petition seeking reorganization of such party under any bankruptcy act or any similar applicable law, and such
decree or order has continued undischarged or unstayed for a period of sixty (60) days; or a decree or order of a court having jurisdiction for the appointment of a receiver or liquidator or trustee or assignee in bankruptcy or insolvency of such
party or all or substantially all of its property, or for the winding up or liquidation of its Affiliates, has been entered, and such decree or order has remained in force undischarged or unstayed for a period of sixty (60) days, then the other
party shall have the right to terminate this Agreement by giving the first mentioned party notice to that effect within thirty (30) days after the expiration of such sixty-day period.
  
(c)       Institution of Bankruptcy Proceedings. If a party institutes proceedings to be adjudicated voluntarily
bankrupt or consents to the filing of bankruptcy proceedings against it, or files a petition for answer or consent seeking reorganization under any bankruptcy act or similar law or consents to the filing of any petition or consents to the
appointment of a receiver or liquidator or trustee or assignee in bankruptcy or insolvency of it, or all or substantially all of its property, or makes a general assignment for the benefit of creditors or admits in
 
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  writing its inability to pay its debts generally as they become due, then the other party shall have the right to terminate this Agreement by giving the
first mentioned party notice to that effect within thirty (30) days after the occurrence of such event.
 (d)      Change of Control. At any time after a Change of Control, KO Sub may elect to terminate this Agreement following twelve (12) month’s prior written
notice.
 
  
7.04.    Partnership Termination. Upon the termination of the Partnership, this Agreement shall be terminated concurrently therewith, and KO Sub or its Affiliate and CCBCC
shall enter into a management agreement providing for the management of the portion of the Business distributed to KO Sub or its Affiliates in the dissolution of the Partnership upon the same terms and conditions (including any CPI adjustment
provision herein) as in effect at the time of the termination of the Partnership, except that KO Sub shall assume all of the authority of the Executive Committee under this Agreement. The Annual Business Plan adopted by KO Sub each year during the
term of such agreement shall be substantially similar to the Annual Business Plans adopted in prior years. Such Agreement shall have a term of at least two years, but shall be terminable by KO Sub on sixty (60) days prior written notice. Following
the termination of such management agreement, CCBCC shall cooperate in good faith with KO Sub in making available for employment by KO Sub or its Affiliates all employees of CCBCC or its Affiliates who are engaged in the operation of that portion of
the Business then owned by KO Sub or its Affiliates.
 
  
 7.05    Effect of Termination. Upon the termination of this Agreement, this Agreement shall be of no further force and effect, except that the
provisions Sections 8, 9 and 10 shall continue in full force and effect indefinitely. Upon the termination of this Agreement, the Partnership shall immediately pay Manager the balance of the Management Fee accrued hereunder to the date of
termination. Notwithstanding anything contained herein to the contrary, in the event that this Agreement is terminated pursuant to Section 7 hereof, the Partnership may elect to purchase product from Manager on the same terms as set forth in Section
3.01(c)(1) for up to two (2) years following termination; provided that Manager has received written notice of such election no later than fifteen (15) Business days prior to termination; and further provided that following such election the
Partnership may elect to discontinue making such purchases from Manager upon sixty (60) days prior written notice.
 Section 8.       Confidentiality.
 8.01    Confidential Information. The Parties acknowledge that each of them may be required to disclose Confidential Information to governmental
agencies or authorities by law, upon the advice of counsel, and each shall endeavor to limit disclosure to that purpose. Each Party will give the other prior written notice of
 
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  any disclosure pursuant to this paragraph, which notice shall specify the substance of any such disclosure.
 8.02    Identification. Each party hereto will take appropriate steps to enable the other party
hereto to identify the information that should be protected as Confidential Information. Accordingly, each party shall legend or otherwise designate as proprietary any material furnished to the other party if any Confidential Information is
included. In addition, any information involving Confidential Information that is imparted orally shall be identified as proprietary.
 8.03    Acknowledgment of Confidential Information. Each party recognizes and acknowledges (a) that Confidential Information of the other party may be commercially valuable
proprietary products of such party, the design and development of which may have involved the expenditure of substantial amounts of money and the use of skilled development experts over a long period of time and which afford such party a commercial
advantage over its competitors; (b) that the loss of this competitive advantage due to unauthorized disclosure or use of Confidential Information of such party may cause great injury and harm to such party; (c) that the restrictions imposed upon the
parties under this Agreement are necessary to protect the secrecy of Confidential Information and to prevent the occurrence of such injury and harm.
 8.04    Nondisclosure. Each party who receives Confidential Information hereunder (the “Receiving
Party”) agrees that it will not, without the prior written consent of the party from whom such Confidential Information was obtained (the “Disclosing Party”),
disclose, divulge or permit any unauthorized person to obtain any Confidential Information disclosed by the Disclosing Party (whether or not such Confidential Information is in written or tangible form) for as long as the pertinent information or
data remain Confidential Information. The Receiving Party hereby agrees to indemnify and hold harmless the Disclosing Party from and against any and all damage, loss, liability and expense (including, without limitation, reasonable expenses of
investigation and reasonable attorneys’ fees and expenses) arising from any such unauthorized disclosure by the Receiving Party or its personnel. The Receiving Party agrees that it will use any Confidential Information disclosed by the
Disclosing Party hereunder (whether or not such Confidential Information is in written or tangible form) only for purposes of the business of the Partnership as contemplated by the Partnership Agreement, for as long as the pertinent information or
data remain Confidential Information. The Receiving Party hereby agrees to indemnify, defend and hold harmless the Disclosing Party from and against any Loss arising from any such unauthorized disclosure by the Receiving Party or its
personnel.
 8.05    Security. To
protect the Confidential Information of the parties, each party shall adopt basic security measures of the kind commonly observed in industries in the United States of
 
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  America that rely extensively on proprietary information. Security measures, to the extent appropriate, shall include physical security measures,
restrictions on access by unauthorized personnel, use of confidentiality agreements with personnel, legending, systematic segregation, and appropriate record retention systems.
  
 8.06  Competitively Sensitive Information. Notwithstanding the foregoing, in providing information
hereunder, each party hereto will take care, and will ensure that its respective representatives will take care, to avoid the overbroad disclosure of competitively sensitive financial, operating or similar data, if any, as to which disclosure would
have adverse consequences under applicable laws, including federal and state antitrust laws. Appropriate procedures will be followed by the Partnership and the Partners to limit the disclosure of competitively sensitive data, if any.
 

Section 9.       Manager’s Liability and
Indemnification.
 9.01    Limitation on
Liability. Manager shall not be responsible for any errors in judgment made in good faith in the performance of its duties hereunder; provided, however, that nothing contained herein shall
release Manager of any responsibility it may have for product liability claims or claims based on the negligent or willful misconduct of Manager.
 9.02    Indemnification. The Partnership shall indemnify and hold Manager and its Affiliates, directors, officers,
employees and agents (each an “Indemnitee”) harmless from any and all Losses arising in connection with the Business (a “Claim”),
except to the extent such Losses arise out of Manager’s breach of this Agreement, negligence, fraud or willful misconduct in which event Manager shall be liable to and indemnify the Partnership from and against any Losses incurred by the
Partnership as a result thereof.
 9.03    Indemnity Procedure for Third Party
Claims. The obligations and liabilities of the Partnership to indemnify an Indemnitee or Manager to indemnify the Partnership, as applicable, for third party Claims (including those by
Manager’s personnel) under this Section 9 shall be subject to the following terms and conditions:
 (a)       The person or entity (i.e., Partnership, Manager or Indemnitee) making a claim (“Claimant”) will give the party from whom
indemnity is sought (“Notified Party”) prompt notice of such Claim. The failure to promptly notify a party of any such Claim shall not relieve the party of its obligation hereunder, unless the
failure to so notify such party materially prejudices such party’s ability to defend such Claim.
 (b)      Following notice by the Claimant to the Notified Party of a Claim, the Notified Party shall be entitled at its cost and
 
-16-

  expense to contest and defend such Claim by all appropriate legal proceedings; provided, however, that notice of the intention so to contest shall be
delivered by the Notified Party to the Claimant within thirty (30) days from the date of receipt by the Notified Party of notice from the Claimant of the assertion of such Claim. Any such contest may be conducted in the name and on behalf of the
Notified Party or the Claimant, as may be appropriate. Such contest shall be conducted diligently by reputable counsel employed by the Notified Party, but the Notified Party shall keep the Claimant fully informed with respect to such Claim and the
contest thereof and the Claimant shall have the right to engage its own counsel at its own expense. If the Claimant joins in any such contest, the Notified Party shall have full authority, in consultation with the Claimant, to determine all action
to be taken with respect thereto; provided, however, that in no event shall the Notified Party have authority to agree to any relief other than the payment of money damages by the Claimant unless agreed to by the Claimant. Each party shall bear its
own expense of such representation. If any Claim is asserted and the Notified Party fails to contest and defend such Claim within a reasonable period of time, the Claimant may take such action in connection therewith as the Claimant deems necessary
or desirable, including retention of counsel, and the Claimant shall be entitled to indemnification of the costs incurred in connection with such defense.
 (c)       If requested by the Notified Party, the Claimant shall cooperate with the Notified Party and its counsel, including permitting reasonable access to books and
records, in contesting any Claim which the Notified Party elects to contest or, if appropriate, in making any counterclaim against the person asserting the Claim, or any cross-complaint against any person, and the Notified Party will reimburse the
Claimant for reasonable out-of-pocket costs (but not the cost of employee time expended) incurred by the Claimant in so cooperating.
 (d)      The Claimant agrees to afford the Notified Party and its counsel the opportunity to be present at, and to participate in, conferences with all persons, including governmental
authorities, asserting any Claim against the Claimant or conferences with representatives or counsel for such persons. Unless the Notified Party approves in writing the settlement of a Claim, no right to indemnification under Section 9.02 shall be
established by such settlement.
 9.04    Excused Performance. Delay in performance or non-performance by Manager shall be excused to the extent Manager’s ability to perform fully is prevented by an act of God or similar event beyond the reasonable contemplation or control
of Manager.
 
-17-

  Section 10.     Dispute
Resolution.
 10.01   Attempts to
Resolve. All disputes and differences raised by any party to this Agreement or any Partner which may arise out of or in connection with or with respect to this Agreement (including but not
limited to any rights of indemnification under Section 9 hereof) will be settled as far as possible by means of negotiations between the members of the Executive Committee. Any such dispute which cannot be resolved by the Executive Committee after
two meetings of the Executive Committee may be referred by any member of the Executive Committee to KO’s North American Executive Officer and Manager’s Chief Executive Officer for resolution. If said senior executive officers of the
Partners are unable to resolve such matter within sixty (60) days of such referral, then either party may submit the dispute to arbitration in accordance with Section 10.02 of this Agreement for a binding resolution thereof.
 10.02  Arbitration. Except as provided in Section 10.05
hereof, any dispute, controversy or claim arising out of or relating to this Agreement or the breach, termination or validity thereof which cannot be resolved by the parties pursuant to Section 10.01 hereof shall be settled by arbitration in
accordance with the Arbitration Rules of the American Arbitration Association in effect on the date of this Agreement (the “Rules”) as modified in this Article. The arbitration shall be held
in Atlanta, Georgia.
 There shall be three arbitrators of whom each party shall select one within 15 days following respondent’s receipt of
claimant’s notice of arbitration and statement of claim. The two party-appointed arbitrators shall select a third arbitrator to serve as presiding arbitrator within 15 days of the appointment of the second arbitrator; provided, however, that in
no event shall such arbitrators be residents of or maintain a place of business in the Atlanta, Georgia, Charlotte, North Carolina or Chattanooga, Tennessee Standard Metropolitan Statistical Areas. The appointing authority shall be the Atlanta
Office of the American Arbitration Association.
 10.03  Claims and
Judgments. Within twenty (20) days of the respondent’s receipt of the claimant’s notice of arbitration and statement of claim, the respondent shall serve the claimant with its
statement of defense and any counterclaims. Within twenty (20) days of claimant’s receipt of the respondent’s statement of defense and counterclaims, the claimant shall serve its statement of defense to any counterclaims or set-offs
asserted by the respondent. The tribunal shall permit and facilitate such prehearing discovery and exchange of documents and information to which the parties in writing agree or which it determines is relevant to the dispute between the parties as
is appropriate taking into account the needs of the parties and the desirability of making discovery expeditious and cost-effective. All discovery shall be completed within forty-five (45) days from the date on
 
-18-

  which the respondent communicates its statement of defense and counterclaims, if any, to the claimant. The hearing shall be held no later than ninety (90)
days following the selection of the presiding arbitrator. Any arbitration award shall be rendered in U.S. dollars, with appropriate interest as determined by the tribunal. Judgment on any award shall be entered in any court having jurisdiction
thereof.
 10.04  Submission to Jurisdiction. For purposes of
disputes arising under this Agreement, the parties hereto submit themselves to the jurisdiction of the state and federal courts located in Atlanta, Georgia or Charlotte, North Carolina with respect to the enforcement of any arbitration award,
provided however, that nothing contained herein shall be deemed a waiver by either party of any right it may have to (i) remove a cause of action brought in state court to a federal court or (ii) petition a court for a change of venue to or from
Atlanta, Georgia or Charlotte, North Carolina. Each of the parties hereby consents to the service of process by registered mail at its address set forth below and agrees that its submission to jurisdiction and its consent to service of process by
mail is made for the express benefit of the other party. The arbitration shall be governed by the Federal Arbitration Act, 9. U.S.C. §§ 1-16, 201-208.
 10.05  Right to Additional Remedies. Notwithstanding anything to the contrary in this Article, in the event any intellectual property (including
Confidential Information) is used in violation of the terms of this Agreement, each party shall be entitled, in addition to the remedy of arbitration set forth herein, to apply immediately to any court of competent jurisdiction for immediate
injunctive relief. Each party hereby submits itself to the jurisdiction of the state and federal courts located in Atlanta, Georgia or Charlotte, North Carolina for any such relief or for the enforcement of any arbitration award against such party;
provided, however, that nothing contained herein shall be deemed a waiver by either party of any right it may have (i) remove a cause of action brought in a state court to a federal court or (ii) petition a court for a change of venue to or from
Atlanta, Georgia or Charlotte, North Carolina.
 Section 11.     Press Release.
 The parties hereto shall consult with each
other before issuing any press release or otherwise making any public statements with respect to this Agreement and the transactions contemplated hereby and shall not issue any such press release or make any public statement prior to such
consultation, except as may be required by law.
 Section 12.     Independent Status of Parties.
 Except as specifically
provided herein, nothing contained in this Agreement shall be construed to constitute a party as agent for the other party. Except as specifically provided herein,
 
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  neither party shall have the right to bind the other party, transact any business in the other party’s name or on its behalf in any manner or form, or
to make any promises or representations on behalf of the other party.
 Section 13.     Assignment.
 Neither the Partnership nor Manager shall assign
or transfer any right or obligation hereunder whether by operation of law or otherwise without the prior written consent of the other. Any such attempted assignment or transfer in violation of this Section 13 shall be void and without legal effect.
Notwithstanding the foregoing, Manager may assign all or any of its rights and obligations hereunder to any wholly owned subsidiary (direct or indirect) of Manager, provided, however, that (a) (i) Manager shall give the Partnership written notice of
such assignment, (ii) any such assignee shall execute an agreement assuming such duties and obligations and deliver the same to the Partnership, and (iii) Manager shall deliver to the Partnership a written unconditional guaranty of the performance
of the duties and obligations so assigned and assumed and (b) such rights and obligations shall revert back to Manager at such time as the assignee ceases to be a wholly owned subsidiary of Manager. Subject to the foregoing, this Agreement shall
inure to the benefit of, and be binding upon, the successors and assigns of the parties hereto.
 Section 14.     Governing Law.
 This Agreement shall
be governed by and construed in accordance with the laws of the State of North Carolina, regardless of any conflicts of laws or rules which would require the application of the laws of another jurisdiction.
 Section 15.     Miscellaneous.
 15.01  Notices. Any notice, request, instruction or other document to be given hereunder
by any party hereto to any other Person shall be in writing and delivered personally or by mail or any express mail service to the addresses set forth below.
 (a)       If to Partnership:
 Coca-Cola Bottling Co. Consolidated

1900 Rexford Road
Charlotte, NC 28211
Attention: Chief Financial Officer
Telecopy Number: 704-551-4451
 With a copy to addresses listed in (b) below
 
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  (b)      If to KO Sub:
 The Coca-Cola Company
One Coca-Cola Plaza 
Atlanta, GA 30313
Attention: Chief Financial Officer
Telecopy
Number: (404) 676-6275
 and
 The Coca-Cola Company
One Coca-Cola Plaza
Atlanta, GA 30313
Attention: General Counsel
Telecopy Number: (404) 676-6209
 (c)       If to Manager, Palmetto or Ventures:
 Coca-Cola Bottling Co. Consolidated
1900 Rexford Road
Charlotte, NC 28211
Attention: Chief Financial Officer
Telecopy Number: (704)
551-4451
 With a copy to:
 Witt, Gaither &
Whitaker
1100 American National Bank Building
Chattanooga, TN 37402
Attention: Ralph M. Killebrew, Jr.
Telecopy Number: (615) 266-4138
 or to such other address or number for a party as shall be specified by like notice. Any notice to the Partnership shall be delivered to all the addressees provided above. All notices so given shall
also be sent by telecopy transmission to the telecopy numbers set forth above or such other numbers as shall be given by notice to the other parties hereto. Any notice which is delivered personally or by telecopy transmission in the manner provided
herein shall be deemed to have been duly given to the party to whom it is directed upon actual receipt by such party or its agent. Any notice which is addressed and mailed in the manner herein provided shall be conclusively presumed to have been
duly given to the party to which it is addressed at the close business, local time of the recipient, on the fourth Business Day after the day it is so placed in the mail or, if earlier, the time of actual receipt.
 15.02  Nonwaiver of Default. Any failure by either party at any time or from time to time
to enforce and require the strict keeping and performance of any of the terms and conditions of this Agreement shall not constitute a waiver of any such terms and conditions at any future time and shall not permit such party from
 
-21-

  insisting on the strict keeping and performance of such terms and conditions at any later time.
 15.03  Interpretation. Should the provisions of this Agreement require judicial or arbitral interpretation, it is agreed that
the judicial or arbitral body interpreting or construing the same shall not apply the assumption that the terms hereof shall be more strictly construed against one party by reason of the rule of construction that an instrument is to be construed
more strictly against the party which itself or through its agents prepared the same, it being agreed that the agents of both parties have participated in the preparation herein equally.
 15.04  Partial Invalidity. If any term or provision of this Agreement not essential to the basic purpose hereof shall be held to
be illegal, invalid or unenforceable by a court of competent jurisdiction, it is the intention of the parties that the remaining terms hereof shall constitute their agreement with respect to the subject matter hereof, and all such remaining terms
shall remain in full force and effect and shall be deemed to constitute the entirety of this Agreement as though such illegal, invalid or unenforceable provision had never been a part hereof.
 15.05  Amendment or Rescission. This Agreement shall not be modified or rescinded except
by a written instrument setting forth such modification or rescission and signed by the parties hereto.
 15.06  Duplicate Originals. For the convenience of the parties hereto, this Agreement may be executed in two counterparts, and each such counterpart shall be deemed to be an original
instrument and together constitute one and the same Agreement.
 15.07  Captions.
The captions or headings of the Sections and other subdivisions hereof are inserted only as a matter of convenience or for reference and shall have no effect on the meaning of the provisions hereof.
 15.08  Entirety of Agreement. This Agreement constitute the entire agreement between the
parties hereto with respect to the subject matter hereof, and there are no agreements, understandings, covenants, conditions or undertaking, oral or written, expressed or implied, concerning such subject matter that are not merged herein.
Furthermore, this Agreement shall not be deemed to amend or affect the Partnership Agreement except as may be expressly set forth therein. In the event of any conflict between the terms of this Agreement and the Partnership Agreement, the terms of
the Partnership Agreement shall prevail. The Interim Management Agreement, dated June 16, 1993, between Manager and Carolina Holding has been terminated simultaneously with the execution of this Agreement.
 15.09  Plurals, Etc. As used herein or in any document which incorporates the terms hereof:

-22-

  (a)       the plural form of the noun shall include the
singular and the singular shall include the plural, unless the context requires otherwise;
 (b)      each of the masculine, neuter and feminine forms of any pronoun shall include all forms unless the context otherwise requires;. and
 (c)       words of inclusion shall not be construed as terms of limitation, so that references to included matters shall be
regarded as non-exclusive, non-characterizing illustrations.
 15.10  No Rights or Privileges to
Employees. This Agreement shall not (and shall not be construed to) confer any rights or privileges on any employees of any party to this Agreement.
 
-23-

  IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed on its behalf by its duly
authorized representative as of the date first written above.
  

	  
 	  
 	 MANAGER:
 
 Coca-Cola Bottling Co. Consolidated
 
	 
 
 
 	  
 	 By: 
 	 
 /s/ DAVID V. SINGER
 
	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	 David V. Singer
 Vice President
 

  

	  
 	  
 	 CCCB PARTNERSHIP:
 
 Carolina Coca-Cola Bottling Partnership
 
	 
 
 
 	  
 	 By: 
 	 
 /s/ TIMOTHY J.
DOYLE
 
	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	 Carolina Coca-Cola Bottling Investments, Inc.
 General Partner
 

 

	  
 	  
 	  
 
	 
 
 
 	  
 	 By: 
 	 
 /s/ DAVID V. SINGER
 
	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	 Coca-Cola Ventures, Inc.
 General Partner
 

  

	  
 	  
 	  
 
	 
 
 
 	  
 	 By: 
 	 
 /s/ DAVID V. SINGER
 
	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	 Palmetto Bottling Company
 General Partner
 

  

	  
 	  
 	 WILMINGTON:
 
 CCBC of Wilmington, Inc.
 
	 
 
 
 	  
 	 By: 
 	 
 /s/ DAVID V. SINGER
 
	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	 David V. Singer
 Vice President
 

  
 
-24-

   

	  
 	  
 	 PARTNERS:
 
 Carolina Coca-Cola Bottling Investments, Inc.
 
	 
 
 
 	  
 	 By: 
 	 
 /s/ TIMOTHY J. DOYLE
 
	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	 Timothy J. Doyle
 Vice President
 

  

	  
 	  
 	 Coca-Cola Ventures, Inc.
 
	 
 
 
 	  
 	 By: 
 	 
 /s/ DAVID V. SINGER
 
	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	 David V. Singer
 Vice President
 

  

	  
 	  
 	 Palmetto Bottling Company
 
	 
 
 
 	  
 	 By: 
 	 
 /s/ DAVID V. SINGER
 
	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	 David V. Singer
 Vice President
 

  
 
-25-

  EXHIBIT A
 Fully Loaded
Standard Manufacturing Cost 1993
 The definition of Coca-Cola Bottling Co. Consolidated fully loaded standard cost includes the following components:
raw materials, direct manufacturing labor, variable manufacturing overhead and fixed manufacturing overhead each of which is computed on a physical case basis by package.
 Raw material costs include the estimated cost for concentrate, sweetener and packaging materials such as bottles, cans, closures, glue, hi-cones, trays and labels. Other raw materials include miscellaneous blending
ingredients and CO2.
 The direct labor component of costs include estimated labor costs that are directly involved in the production of finished
goods. Costs include regular wages, associated fringe benefits and payroll taxes.
 The variable manufacturing overhead component of costs include all estimated
indirect labor, variable and semivariable factory overhead costs. Costs include indirect labor, supplies, machine maintenance, materials breakage, production machine rental, insurance/workers’ compensation, utilities and maintenance
costs
 The fixed manufacturing overhead component of cost include all estimated fixed labor, depreciation expense, facility maintenance and building repairs,
general insurance, taxes and building rent/lease expenses.
 Fully loaded standard cost is reviewed on an annual basis and revised annually for changes in the
components’ cost. Fully loaded standard cost does not include any allocation of costs not incurred at production locations.
 NOTE:          Fully loaded standard manufacturing cost does not include transportation cost from the manufacturing location to the sales branch which
shall be consistent with Manager’s transportation costs incurred with respect to other sales branches. Transportation cost would be in addition to the fully loaded standard manufacturing cost in determining total product cost.
 
-26-

  EXHIBIT B
 Initial Levels of
Insurance
 Please see attached.
 
-27-

     

	 Policy Number
 	  
 	 Insurer
 	  
 	 Type of Insurance
 	  
 	 Limits
 	  
 
	 
 	  
 	 
 	  
 	 
 	  
 	 
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	 PPPF891497
 	  
 	 Home Indemnity Company
 	  
 	 Property
 	  
 	 $14,651,177 Buildings;
 $9,273,000 Contents
 	  
 
	  
 	  
 	  
 	  
 	 Commercial General Liability
 	  
 	 $1,000,000
 	  
 
	  
 	  
 	  
 	  
 	 Accounts Receivable Business Interruption
 	  
 	 $6,530,000
 $8,995,000
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	 22CBBRB0962
 	  
 	 Hartford Accident & Indemnity
 	  
 	 Comprehensive Crime
 	  
 	 $50,000 Truck Drivers; 
 $500,000 All other
 employees
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	 GLA583-43-31,24(1)
 	  
 	 The Coca-Cola Bottlers’ Assn.
 	  
 	 Product Liability
 	  
 	 $500,000 Each occurrence,
 BI, PD 
 $1,000,000Aggregate
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	 BAF718883
 BAF7173137
 	  
 	 Home Indemnity
 Company
 	  
 	 Comprehensive Automobile Liability and Physical Damage
 	  
 	 $1,000,000 Each occurrence
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	 YUB00108
 	  
 	 Genesis Insurance Company Liability
 	  
 	 Umbrella Excess
 	  
 	 $5,000,000 Coverage H
 $1,000,000 Coverage B+C
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	 WC-L225090-2
 	  
 	 Home Indemnity Company
 	  
 	 Workers’ Compensation
 	  
 	 Statutory Benefits,
 $500,000 Employers
 Liability
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	 78349363
 	  
 	 Chubb Group
 	  
 	 Boiler & Machinery
 	  
 	 $10,000,000
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	 025FF100809872
 	  
 	 Aetna
 	  
 	 Fiduciary Responsibility
 	  
 	 $500,000 Basic; $500,000
 Recourse
 	  
 

 
    (1)    Policy for Wilmington is to be issued.
 
-28-

  EXHIBIT C
 Entity and Sales
Branch Expenses
 Each Sales Branch will incur certain specific expenses directly related to the routine operation of the sales branch. These expenses
are as follows:
 1.        _______ cost at Manager’s
fully loaded standard cost as determined in accordance with Exhibit A. Transportation cost will be included at an established standard by package for each branch to be adjusted and reconciled quarterly
for any increase and decrease in cost.
 2.        Payroll
and benefit costs for all Sales Branch Employees and Partnership employees, including the branch manager. Benefit costs currently are estimated to be (and will be accounted for in the Annual Business Plan at) 18% of payroll
(which number will be adjusted from time to time to reflect actual costs) and will be reconciled and adjusted annually to actual cost.
 3.        Sales development fund expenses (CMA’s).
 4.        Point-of-sale expenses.
 5.        Local marketing costs such as coupon redemption, product donations, customer promotion items (dealer loaders).
 6.        Insurance - Automobile, workers compensation, general liability, product liability,
D&O, crime, property, boiler as required under Section 3.01(c)(7).
 7.        Utility costs.
 8.        Security.
 9.        Telephone.
 10.      Branch supplies 
 11.      Building repairs.
 12.      Employee travel and entertainment.
 13.      Postage.
 14.      Over/short from route settlement.
 15.      Garbage removal.
 16.      Janitorial maintenance.
 17.      Rent on facilities.
 
-29-

  18.      Federal, state and local taxes
related to the Business and payable by the Partnership.
 19.      Business licenses and entity licenses and fees (i.e., annual report, foreign qualification, franchise fee, etc.) relating to the Partnership or the Business.
 20.      Depository bank service charges.
 21.      Bad debt expense.
 22.      Advertising expense.
 23.      Vending and Fleet Lease Payments.
 24.      Other expense line items set forth in attached Profit and Loss Statement which are not specifically stated herein.
 
-30-

  EXHIBIT D
 Division
Expenses
 Manager will charge the Partnership on a proportionate volume basis for the relevant Division for certain expenses which are incurred at a
Division level. These Division expenses are as follows:
 Division sales management expenses
Vender service expenses
Fleet expenses
Post Mix Management
 Computation of Pro-Rata Division Expense for Partnership.
 It is anticipated that the Sales Branches will make up portions of different sales divisions which will include other sales branches of Manager.
Accordingly, Manager will calculate the cost of Division sales management, vender service expenses, fleet expenses and Division post-mix management expenses on an Equivalent Case basis across all of the sales Divisions involved with the Partnership
Sales Branches. The per case charge for each of the costs will then be multiplied by the Equivalent Case sales for the Sales Branches in each fiscal month.
 To
the extent that Division sales management, vender service expenses, fleet expense and Division post-mix management expenses are incurred at locations where 100% of the activities are related to Partnership business, then those expenses will not be
based upon a pro-rata allocation using Equivalent cases. Instead, the actual expenses for these locations for the aforementioned types of expenses will be charged to the Partnership as incurred.
 
-31-

  EXHIBIT E
 Refurbishment
Expenses
 The following items would be refurbished by Manager and billed to the Partnership based on Manager’s standard rate consistent with what
Manager charges its other sales branches for the respective Manager refurb location:
 Route delivery vehicles
 Cold drink equipment (venders, CCM’s) 
 Post-mix equipment
 Pre-mix equipment
 Coin changers
 Dollar bill validators
 Refrigeration units (compressors)
 NOTE:          The “standard rate” includes all labor costs associated with the specific
refurbishment, including fringe benefits, as well as other direct expenses associated with the refurbishment process. The refurbishment cost does not include any corporate overhead or interest charges.
 
-32-

  EXHIBIT F
 Miscellaneous
Expenses
 1.         Field Marketing
personnel, Field Human Resources personnel, Field NORAND coordinators, Field Quality Assurance, management trainees. Manager will determine the total cost for these employees (payroll and benefits, T&E) in the four sales divisions which include
the Sales Branches. Partnership will determine on an Equivalent Case basis the cost across all of the sales divisions involved. The per case charge for these costs would then be multiplied by the Equivalent Case sales for the Partnership branches in
each fiscal month.
 2.         The following expenses
will be charged to the Partnership on an Equivalent Case basis across all Partnership Equivalent Cases and Manager’s non-Partnership Equivalent Cases combined:
 a.        Under-the-crown (UTC) promotion expenses
 b.        Tax consulting services
 c.        NORAND equipment maintenance
 3.         The state soft drink association dues will be charged to the Partnership based upon the percent of Partnership Equivalent Cases to all
Manager’s non- Partnership and Partnership Equivalent Cases combined in the states of North Carolina, South Carolina, Georgia and Virginia. National soft drink association dues will be charged to the Partnership on a Equivalent Case basis
across all of Manager’s non-Partnership cases and Partnership cases combined.
 4.         Legal fees and external accounting/audit and tax consulting fees related directly to the Partnership or its respective branches.
 5.         Environmental remediation and compliance expenses,
environmental compliance manager’s T&E and other environmental personnel services paid by Manager which benefit the Business.
 6.         New product introduction costs paid by Manager which benefit the Business would be billed to the Partnership.
 7.         Identifiable market research paid by Manager which benefit the
Business.
 8.         Identifiable sponsorships paid
by Manager which benefit the Business and a pro rata charge based on Equivalent Case sales to the Partnership for any sponsorship which
 
-33-

  benefits both the Partnership and Manager sales operations.
 9.         Bonuses paid to Division managers would be charged to the Partnership on a pro rata basis.

10.      Umbrella insurance paid by Manager, if any, which benefits the
Business.
 11.      External training costs paid by Manager
(including antitrust compliance seminars) which benefit the Business.
 12.      Recruiting expense/placement fees paid to third parties for recruitment of personnel for the Business.
 13.      All financing costs including fees, interest, documentation costs, etc., paid by Manager which relate to the Business.
 14.      The Partnership use of Manager’s aircraft; Partnership will be billed at
standard hourly charge.
 15.      Cooperative advertising expenses
paid by Manager, if any, which benefit the Business.
 16.      Contributions paid by Manager which benefit the Business.
 17.      Relocation expenses paid by Manager, if any, which relate to moving employees into the Partnership Territory.
 18.      Any cost of winding up previous insurance programs in the Wilmington, Goldsboro or Coastal territories which is paid by Manager.
 19.      Any cost of winding up employee benefit plans for employees (active/retired/ disabled) in the
Wilmington, Goldsboro or Coastal territories which is paid by Manager.
 20.      Any other expense or cost paid by Manager which relates to the Business and is approved by the Executive Committee.
 21.      The cost of NORAND Equipment and supplies directly used by Partnership’s Sales Branches
 
-34-

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