Document:

EX-10.1

 Exhibit 10.1 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETED ASTERIKS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  
 

 
  

					
	 J. ALEXANDER M. DOUGLAS, JR.

EXECUTIVE VICE PRESIDENT & 

GROUP PRESIDENT, COCA-COLA NORTH

AMERICA
	 		  	 P. O. BOX 1734

ATLANTA, GA 30301

            

 
 404 676-4421

FAX 404-598-4421

 October 30, 2015 

Coca-Cola Bottling Co. Consolidated 
 4100 Coca-Cola Plaza

 Charlotte, NC 28211 
 Coca-Cola Bottling Company United,
Inc. 
 4600 East Lake Blvd. 
 Birmingham, AL 35217 

Coca-Cola Refreshments USA, Inc. 
 1 Coca-Cola Plaza 

Atlanta, GA 30313 
 Swire Pacific Holdings Inc. D/B/A Swire
Coca-Cola USA 
 12634 South 265 West 
 Draper, UT 84020

 Re:    Governance of the Coca-Cola National Product Supply System for the United States (the “NPS
System”) 
 The Coca-Cola Company (“TCCC”) and the Regional Producing Bottlers (as such term is defined in the Regional
Manufacturing Agreement, which is described below) whose signatures appear below (each an “RPB”) have developed governance processes and principles for the NPS System, as more particularly described in the National Product Supply System
Governance Charter and the Attachment(s) thereto (the “NPSG Governance Charter”), a copy of which is attached hereto and incorporated herein as Schedule 1. This letter agreement confirms TCCC’s and each RPB’s mutual
agreement to operate in accordance with, and abide by, the NPS System governance processes and principles outlined in Schedule 1. 

  
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 This letter agreement and the attached Schedule 1 (this “Agreement”) shall be
effective as of January 1, 2016, and shall continue in effect until the dissolution of the National Product Supply Group (“NPSG”) pursuant to the terms of the NPSG Governance Charter or as provided below. This Agreement shall
terminate and be of no further force and effect with respect to an individual RPB if such RPB is no longer authorized to produce beverages marketed or sold under trademarks owned by TCCC (or its affiliates). The Production LOI executed by TCCC and
each RPB contemplates that each RPB will execute a Regional Manufacturing Agreement, by and between TCCC and each RPB (as may be amended, restated or otherwise modified from time to time, the “RMA”). This Agreement further confirms
TCCC’s and each RPB’s mutual commitment, from and after the date hereof, to execute such other documents and arrangements as may be reasonably necessary or appropriate in connection with the implementation and operation of the Coca-Cola
National Product Supply System Governance Board (the “NPSG Board”). 
 The parties further agree that the content of this
Agreement constitute binding legal commitments on the part of CCNA and each RPB whose signature appears below, and that a failure to comply in any material respect with the terms hereof shall constitute a breach of the RMA, entitling the respective
parties to the rights and remedies contained in the RMA. Notwithstanding the foregoing or anything else contained in this letter or the NPSG Governance Charter, the NPSG Board cannot compel any RPB to take any action, or omit to take any action,
which would violate applicable law or constitute a breach of any of its (or any of its affiliates’) agreements with TCCC or any of its subsidiaries, including without limitation the RMA. 

If you are in agreement with the foregoing, please countersign this Agreement in the space provided below. 

[Signature Page Follows] 

  
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	Sincerely yours,
	THE COCA-COLA COMPANY
		
	By:	 	 /s/ Christopher P. Nolan

		 	Name:	 	 Christopher P. Nolan

					
		 	Title:	 	 Vice President

 Acknowledged and Agreed: 

COCA-COLA BOTTLING CO. CONSOLIDATED 
  

					
	By:	 	 /s/ Umesh Kasbekar

		 	Name:	 	 Umesh Kasbekar

					
		 	Title:	 	 Senior Vice President, Planning and

		 		 	 Administration

 COCA-COLA BOTTLING COMPANY UNITED, INC. 
  

					
	By:	 	 /s/ Claude B. Nielsen

		 	Name:	 	 Claude B. Nielsen

					
		 	Title:	 	Chairman and Chief Executive Officer

 COCA-COLA REFRESHMENTS USA, INC. 
  

					
	By:	 	 /s/ Theodore Ghiz

		 	Name:	 	 Theodore Ghiz

					
		 	Title:	 	 Assistant Treasurer

 SWIRE PACIFIC HOLDINGS INC. d/b/a SWIRE COCA-COLA USA 

 

					
	By:	 	 /s/ Jack Pelo

		 	Name:	 	 Jack Pelo

					
		 	Title:	 	 Vice President

  
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 Schedule 1 

National Product Supply System: 

NPSG Governance Charter 
  

			
	Charter Provision	  	Detailed Description
		
	Mission of the National Product Supply System; Guiding Principles	  	As part of the “Next Phase” transactions (as that term is defined in the Letter of Intent entered into between CCNA and each of the RPBs in April or May, 2015, as applicable) to implement the 21st Century Beverage Model, certain Bottlers who anticipate becoming Regional Producing Bottlers or RPBs, as that term is defined in the form of Regional Manufacturing Agreement (“RMA”)
expected to be entered into by the parties, have agreed to implement a National Product Supply System (“NPSS”) that will be governed in accordance with the provisions of this NPSG Governance Charter (the “Charter”). These
activities will include the formation of a National Product Supply Group (“NPSG”) and an NPSG Board (the “Board”) that will direct and oversee the activities of NPSG, as described below.
		
		  	The mission of the NPSS is to operate the United States product supply system for concentrate-based, cold-fill manufactured beverages for Coca-Cola Bottlers in order to:
		
		  	 •    Achieve the lowest optimal delivered cost for this portion of our value chain

		
		  	 •    Invest to build sustainable capability and competitive advantage

		
		  	 •    Prioritize quality, service and innovation as needed in order to successfully meet our
customer and consumer requirements

		
		  	 •    Enable profitable growth for the entire System in alignment with the Coca-Cola System 2020
Vision

		
		  	The RPBs and TCCC, through its operating division Coca-Cola North America (hereinafter “CCNA”) have agreed on certain guiding principles in order to achieve this mission. NPSS participants will recognize the needs and
unique roles played by all members, as follows:
		
		  	 (1) CCNA, as trademark owner and supplier of proprietary concentrates that authorizes all production and distribution for the
Coca-Cola System through separate agreements with each U.S. Coca-Cola Bottler, will lead on issues of Coca-Cola System-wide importance and will represent all non-producing bottlers and other non-RPBs on System-wide manufacturing and related
issues;

		
		  	 (2) RPBs will operate their own RPB assets in accordance with production rights accorded to them by CCNA pursuant to each RPB’s
RMA (and, if applicable, other agreements with CCNA) and will drive System-wide optimization efforts consistent with the

  
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		  	 directives of the NPSG Board, with the intent that the RPBs receive a fair and reasonable return on their individual investments in production assets;
and

		
		  	 (3) NPSG will operate as a resource to CCNA and all RPBs and will identify and recommend System-wide opportunities while acting under
the direction and oversight of the NPSG Board, as described in more detail below;

		
		  	The parties will implement an NPSS governance model that:
		
		  	 (1) promotes collaboration, recognizes the commitment to operate as an optimized and competitive NPS System, and delivers a mechanism
to invest in and capture System savings, including savings from infrastructure projects; and

		
		  	 (2) respects independence as required for RPBs to operate effectively within their own RPB territories.

		
		  	 •    The NPSS will operate on common standards, including data standards, that facilitate cross-RPB
communications and ensure consistent, high quality customer service; and

		
		  	 •    The parties will share information in a transparent manner (subject to applicable legal requirements)
to enable optimal operating decisions.

		
		  	(As discussed in this Charter, (1) “cold fill” means the process of manufacturing beverages in which the product is chilled, or equal to or less than ambient temperature, at time of filling and packaging; (2) “hot
fill” means either (a) aseptic manufacture, or (b) the process of manufacturing beverages in which the product is heated and filled at a high temperature to sterilize the product and container; and (3) “syrup” means the manufacture of
concentrated beverages, such as fountain syrup, in non-consumer packages.)
		
		  	Notwithstanding anything else contained in this Charter, the NPSG Board cannot compel any RPB to take any action, or omit to take any action, which would violate applicable law or constitute a breach of any of its (or any of its
affiliates’) agreements with The Coca-Cola Company or any of its subsidiaries.
		
	Regional Producing Bottlers; NPSG Members	  	The initial NPSG members are the initial RPBs and CCNA. The initial RPBs are Coca-Cola Refreshments USA, Inc. (“CCR”), CCBC Consolidated, CCBC United and Swire USA. Additional RPBs may be designated in the future by
CCNA, provided that no initial RPB shall be required to transfer any of their then-existing rights to manufacture to any such additional RPB.

  
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	National Product Supply Group	  	Effective January 1, 2016, NPSG will be formed as a national product supply system organization to support all RPBs by maximizing System production efficiencies and market opportunities in order to strengthen the
competitiveness of the Coca-Cola System in the U.S. beverage marketplace through: (1) System strategic infrastructure investment and divestment planning; (2) network optimization of all plant to distribution center sourcing (subject to Attachment
1-A); and (3) new product/packaging infrastructure planning. All RPB-owned cold fill manufacturing plants (both legacy and later acquired) will be subject to NPSG governance at the time of establishing NPSG on January 1, 2016. Any manufacturing
plants owned by entities other than RPBs (such as cooperatives or similar organizations) which are managed by an RPB or in which an RPB participates will not be subject to NPSG governance.
		
		  	The parties anticipate that NPSG will initially be housed within CCNA (until such time as the NPSG Board may decide to create a separate NPSG legal entity as described below). NPSG management will be led by a CEO or equivalent who
will be appointed by the NPSG Board. The initial appointment of the CEO must be by unanimous vote of the Board, and the appointment of any successor CEO will be by super-majority [***] vote of the Board. It is currently anticipated that NPSG
will be staffed by supply chain professionals and support staff who may be selected from RPBs and CCNA (subject to each employer’s individual consent). Initially such professionals and support staff will be employed by CCNA or loaned to CCNA by
an RPB as described in more detail below. All direct reports to the NPSG CEO will be appointed by the NPSG Board as provided below. Any employees of CCNA appointed to NPSG (including the CEO and his or her direct reports), will be subject to the
provisions below regarding their ongoing employment by CCNA.
		
		  	The costs of NPSG will be funded by CCNA and the RPBs, shared as follows :
		
		  	- [***] funded by CCNA
		
		  	- [***] funded by the RPBs, [***].
		
		  	[***].
		
	NPSG Board:	  	
		
	Overall Authority and Relationship to CEO and Senior Management Team	  	Effective January 1, 2016, overall management authority for the activities, business and affairs of NPSG will be vested in the Board. Until such time as a separate NPSG entity is formed, the Board will engage individuals who
are employees of CCNA or other RPBs to act as a professional management team (including a CEO or equivalent) for NPSG. The Board will (1) specify the duties and scope of engagement of such individuals with NPSG and the amounts payable by NPSG to
CCNA or such other RPBs for such

  
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		  	engagement; (2) have the authority to select, place and remove, the CEO and other NPSG professional management team members who directly report to the CEO from their engagement with NPSG (but not from their employment with CCNA or
other RPB); and (3) have decision making authority with respect to the overall management of NPSG, including without limitation approving NPSG annual and strategic business plans and NPSG operating and capital budgets. The Board will delegate to the
CEO and management team sufficient authority to conduct the day-to-day operations of NPSG, subject to the ongoing authority of the Board with respect to the overall activities of NPSG as described above.
		
		  	Notwithstanding the foregoing, the parties recognize that (until such time as the NPSG Board may decide to create a separate NPSG legal entity as described below) the CEO and members of NPSG management will be employees of CCNA. As
such, their ongoing employment terms and conditions (including without limitation the right to hire and fire as employees of CCNA and to set their overall compensation with CCNA) will reside with CCNA; provided, however, the terms of their
engagement by NPSG (including compensation allocated to NPSG, and scope of their services to NPSG and the ongoing performance evaluations of such individuals for their service to NPSG) shall be subject to the authority and control of the NPSG Board
to the fullest extent allowed by law.
		
		  	It is anticipated that the System Leadership Governance Board (“SLGB”) will have an advisory relationship to NPSG and its Board (i.e., NPSG, its management team and/or the NPSG Board members would report major NPSG system
developments, activities and plans to the SLGB on a regular basis). SLGB will have no decision rights or authority over NPSG or its Board.
		
	Board Membership	  	Initial 5-Member Board.    The Board will initially consist of five (5) voting members comprised as follows: CCNA and each of the initial RPBs (CCR, CCBC Consolidated, CCBC United and Swire USA). Each
initial NPSG member will appoint in writing one of its senior representatives to the Board, along with one alternate senior representative who is entitled to attend and vote at Board meetings.
		
		  	Expanded Board.    The parties anticipate that over time the Board may expand from this initial 5-member size to a maximum size of [***] voting members as other Coca-Cola bottlers become RPBs and
join the NPSG. [***]. 
		
	Matters Subject to Voting by the Board	  	Each member of the NPSG Board will have one (1) vote. The Board will vote and will direct and oversee the actions of NPSG, its CEO and management team, including without limitation, as
follows:

  
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		  	 a)      (1) System strategic infrastructure investment and divestment planning; (2) network optimization
of all plant to distribution center sourcing (subject to Attachment 1-A); and (3) new product/packaging infrastructure planning. These processes and plans will be based on achieving lowest optimal system delivered cost per case at service levels
that are agreed upon by the Board;

		
		  	 b)      Selection of the NPSG CEO and his or her direct reports and evaluating their performance;
and

		
		  	 c)      Approval of the NPSG strategic and annual business plans and operating and capital
budgets.

		
		  	All votes of the Board with respect to matters within the scope of NPSG authority are final and binding on all members. Subject to the provisions herein, it is therefore agreed that a vote by the Board that requires a party to take
certain actions with regard to cold fill manufacturing and related product supply (including without limitation a capital investment, divestment, decommissioning of a line or facility, addition of a new product line, etc.) will be final and binding
on that party. All cold fill manufacturing plants owned by an RPB will be subject to binding governance by the Board on January 1, 2016, with the initial focus of governance decisions being to review and approve [***] plans. Any manufacturing
plants owned by entities other than RPBs (such as cooperatives or similar organizations) which are managed by an RPB, or in which an RPB participates, will not be subject to NPSG governance unless otherwise mutually agreed by the NPSG Board and such
other entities.
		
		  	A more detailed description of the scope of the authority of the Board to make decisions and of the related voting requirements is attached as Attachment 1. 
		
		  	In addition to the matters subject to Board vote as described above, each RPB may also, at its discretion, advise NPSG’s CEO and management team on a wide range of business issues applicable to the NPSS (e.g., major NPS system
developments, activities and plans that are not subject to Board vote as described above). The NPSG CEO and management team will regularly report to the Board NPSG’s work and its performance under the strategic and annual plans and other
applicable metrics established or approved by the Board. The NPSG CEO and management team will actively seek input from, and will work collaboratively with, each RPB in exercising the decision rights granted to it by the Board.
		
	Designation of Board Representative	  	CCNA and each RPB will designate in writing one of its senior executives, preferably its Chief Product Supply or Chief Supply Chain Officer, to participate on the Board. This designation will be made in writing to
the

  
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		  	Board chair at least 30 days in advance of each calendar year, provided the failure by any such entity to provide such designation shall mean that the person previously designated by such entity will continue to serve on the Board.
Attendance by the designated representative will normally be in person, although telephonic or video participation may be allowed at the discretion of the chair. CCNA and each RPB shall also designate in writing an alternate representative to attend
and vote on behalf of their respective designated Board representative in the event that the primary representative is unable to attend a particular meeting due to extraordinary circumstances. Any vacancy in membership will be filled promptly, prior
to the next regularly scheduled meeting.
		
	Voting; Extraordinary Matters	  	Normal business within the scope of NPSG’s authority that is considered by the Board will be decided by a “super-majority” [***] vote of the members, subject to the exceptions described below. All Board members
must be present (in person or by teleconference, videoconference or other similar method) for any vote to take place. Normal business includes NPSG strategic and tactical decisions described in Attachment 1 to this Charter (which Attachment
also includes a more detailed description of the Board voting requirements and RPB decisions that are not subject to Board vote, and the role of CCNA in NPSG governance activities), but the Board’s authority does not include any decisions
described in Attachment 1 to this Charter that are reserved to be made solely by an RPB. Exceptions to the super-majority voting requirement described above in the case of extraordinary matters are:
		
		  	 (1) [***];

		
		  	 (2) [***];

		
		  	 (3) any vote to approve a capital project which requires an individual RPB to invest or divest capital and capital assets greater than $[***] for the
particular project including a write-off of de-commissioned assets (a “Covered Capital Project”) will require a super-majority [***] vote plus an affirmative vote from the RPB being required to invest in, divest, or write off such
capital (as used herein, the term Covered Capital Project will mean all components or sub-work streams of a capital project, when viewed as a unitary whole);

		
		  	 (4) any vote to approve a capital project which, when taken together with any Covered Capital Project and other capital expenditures made or planned to be
made in a given fiscal year, would require an individual RPB to invest or divest capital and capital assets more than [***]; (an “Aggregate Threshold Capital Project”), will require a supermajority [***] vote plus an
affirmative vote from the RPB being required to invest in such capital;

		
		  	 (5) [***];

		
		  	 (6) [***]; and

		
		  	 (7) [***].

  
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	Frequency of Meetings	  	The Board will meet on a monthly basis, or such other basis as it may determine in its discretion from time to time. Meetings will normally be held in person, but telephonic or video conference meetings may be held from time to time
if necessary in the Board chair’s discretion.
		
	Action without a Meeting	  	Any action required or permitted to be taken at any meeting of the Board may be taken without a meeting if all members of the Board consent thereto in writing or electronic transmission, and the writing or writings or electronic
transmission or transmissions are filed with the minutes of proceedings of the Board.
		
	Meeting Protocols	  	The Board will function like the board of directors of a corporation, provided all fiduciary duties that members of the Board might otherwise owe to NPSG and its members are hereby waived and eliminated to the maximum extent
permitted by applicable law. At its first meeting, the Board members will designate a member to serve as Board chair. CCNA and NPSG staff and RPB employees may, upon the approval of the Board, be utilized by the chair to prepare for and facilitate
Board meetings.
		
	Form of Organization; Life of Organization	  	NPSG will initially be organized as an unincorporated association requiring RPBs and CCNA to comply with Board decisions as provided for under the NPSG Governance Agreement and this Charter. CCNA and the RPBs do not intend to create
a general partnership, and neither NPSG nor any member may act on behalf of any other member. NPSG shall continue as initially constituted or as a new legal entity (if approved with the required vote described below) until otherwise dissolved or
disbanded by the super-majority vote of its members, including CCNA’s affirmative vote.
		
	Other Matters:	  	
		
	Creation of New NPS Legal Entity	  	The Board may separately decide, at a future date (but no sooner than [***]), to form a separate legal entity to carry out the functions performed by NPSG. [***]. The details regarding this entity, including its legal
structure, finances, governance, etc., will be agreed by the Board at the time of the formation of the separate entity. 
		
	Role of CCNA	  	As described above and as reflected in Attachment 1, CCNA will be a member of the Board with voting and decision-making rights as described in this Charter. As described above, CCNA will also house NPSG as a separate
organization within CCNA and will employ its management team and staff, until such time as the Board otherwise agrees or a new legal entity is formed as described above. Among its roles, and in order to ensure compliance with laws (including
antitrust laws), to increase the competitiveness of the Coca-Cola System, and as consistent with the rights it has retained under the Regional Manufacturing Agreement, CCNA will, depending upon which sales are involved, set the prices (or set
certain elements of the pricing formula) for the finished CCNA products produced by RPBs and sold to Coca-Cola Bottlers in the United States, in a manner that provides [***].

  
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		  	In addition, the CCNA production lines for cold-fill water and cold-fill Glaceau products currently managed by CCR will be subject to governance under NPSG.
		
		  	CCNA will continue to own and manage the hot fill lines in CCR cold fill plants. A co-packing agreement on mutually agreed terms and conditions will be developed with each RPB operating hot fill lines in a cold fill plant. CCNA will
also continue to manage all CCNA hot fill, syrup and CCNA-procured product platforms (collectively, the “Other Platforms”), such that the Other Platforms, along with the cold fill platform, function as a regionally integrated product
supply system. For clarity, CCNA will continue to independently manage the Other Platforms as described above in this paragraph, and may use the services provided by NPSG, but will not be subject to binding governance by the NPSG Board with respect
to the Other Platforms.
		
	Employee Matters	  	Each RPB and CCNA will retain individual control for decisions regarding the hiring, firing, discipline, supervision, and direction of employees associated with its manufacturing assets, including decisions relating to wages and
compensation, the number of job vacancies to be filled, work hours, training, the assignment of work and equipment, employment tenure, and collective bargaining.
		
	Common IT Platform	  	The parties will continue to work together in good faith toward the implementation of a common information technology platform (i.e., the CONA manufacturing platform), subject to the following:
		
		  	 •    all such work will be subject to the governance of the Business Process Technology Council or the new
CONA IT services company;

		
		  	 •    such platform will have capabilities that equal or exceed that of the Coca-Cola bottling system’s
current platforms; and

		
		  	 •    all such capabilities built into the platform will have an adequate and acceptable return on investment,
as determined by the Business Process Technology Council or the new CONA IT services company.

		
		  	Subject to the governance of the Business Process Technology Council or the new CONA IT services company, each RPB will be responsible for funding a portion of the design and development of such platform based on its end-state
percentage of total production volume and the total cost related to deployment of the system in each one of its manufacturing plants.
		
	Expenses	  	Expenses such as travel costs related to members’ attendance at meetings are the responsibility of each of the RPBs and CCNA, individually.
		
	Confidentiality	  	Board activities and discussions will often involve exposure to highly confidential business information and data. The parties agree that any confidential information exchanged by any of the parties in connection with NPSG will be
used solely for the purpose of implementing and operating the

  
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		  	NPSG as described herein and will be treated as confidential information under the most recent Comprehensive Beverage Agreement (“CBA”) executed by such party (or such party’s affiliates) and further agree that
they will at all times abide by the confidentiality provisions of the CBA, which are incorporated herein by reference. Each RPB that provides any of its Proprietary Information (as defined in the applicable CBA) in connection with NPSG is an
intended third-party beneficiary of such confidentiality provisions and will be entitled to enforce such provisions against any party that receives such information.

  
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 Attachment 1 

[***] 

  
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 Attachment 1-A 

RPB Decisions 

Ongoing Plant Planning and Execution, including without limitation: 

–    Production Supply Operations, including without limitation: 

 

	 	•	 	Maintenance planning, execution, parts selection 

  

	 	•	 	Plant and line layout and design 

  

	 	•	 	Equipment selection and installation 

  

	 	•	 	All staffing-hiring/firing/Structures/Compensation 

  

	 	•	 	Holiday work plans 

  

	 	•	 	Technology Innovation 

  

	 	•	 	Alpha Mos, CC+I, & any plant-specific IT tools not part of CONA Manufacturing platform 

  

	 	•	 	Management Routines 

  

	 	•	 	Vendor selection 

  

	 	•	 	Pallet configuration 

  

	 	•	 	Dock times and capacities 

  

	 	•	 	Shipping/Receiving Days/Times 

  

	 	•	 	Syrup production methods-traditional blending vs stream blending (conti mix) 

  

	 	•	 	Individual Plant Capacity Definition 

  

	 	•	 	Line Speed Definitions 

  

	 	•	 	Innovation SKUs 

  

	 	•	 	Technology Innovation 

  

	 	•	 	Warehousing Capacity Management 

 –    Employee Matters, including
without limitation: 
  

	 	•	 	All staffing-hiring/firing/Structures/Compensation 

  

	 	•	 	Holiday work plans 

  

	 	•	 	Promotion and Development Structures 

  

	 	•	 	Work schedules 

  

	 	•	 	Shift Design 

  

	 	•	 	Job Descriptions and Accountabilities 

  

	 	•	 	Qualification Standards 

  

	 	•	 	Performance Management 

  

	 	•	 	Training 

  

	 	•	 	Collective bargaining 

 –    Supplier Relationship Management,
including without limitation: 
  

	 	•	 	Raw Material Inventory Policies 

  

	 	•	 	Defective Production Materials Resolution 

  

	 	•	 	Raw Material Inventory Management 

  

	 	•	 	Indirect Materials Procurement 

  

	 	•	 	Communications to individual RPB’s plants 

  

	 	•	 	Capital Equipment Procurement 

  

	 	•	 	Management Routines 

  

	 	•	 	Lifecycle Decisions 

  

	 	•	 	SKUs 

  
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	 	•	 	Machines 

  

	 	•	 	Inventory Strategies at Vendor 

  

	 	•	 	Raw Material movements between plants as needed 

  

	 	•	 	Forecasts to raw material suppliers 

  

	 	•	 	Raw material upcharge decisions (i.e. below min run upcharges) 

  

	 	•	 	Commercialization process in Plants 

  

	 	•	 	Inventory guidance to raw material suppliers (e.g. how much they hold on their floor) 

  

	 	•	 	Scrap & bill decisions for obsolete materials 

  

	 	•	 	Billing for obsolete materials 

  

	 	•	 	Sales of raw materials to other RPBs 

 –    Product Supply
Planning, including without limitation: 
  

	 	•	 	Forecasting 

  

	 	•	 	Detailed Production scheduling 

  

	 	•	 	Transportation Procurement 

  

	 	•	 	Transportation Planning and Execution 

  

	 	•	 	Inventory Policies 

  

	 	•	 	Inventory Deployment Strategies 

  

	 	•	 	SKUs produced by plant 

  

	 	•	 	Innovation SKUs 

  

	 	•	 	Mid Term Planning 

  

	 	•	 	Capacities/Capabilities 

  

	 	•	 	Management Routines 

  

	 	•	 	Lifecycle Decisions 

  

	 	•	 	SKUs 

  

	 	•	 	Machines 

  

	 	•	 	Promotions Scheduling and Management 

  

	 	•	 	Pallet Quantity Definition 

  

	 	•	 	Pallet type 

  

	 	•	 	Plastic vs wood pallets 

  

	 	•	 	40x48 vs 37x37 

  

	 	•	 	Shipping/Receiving Days/Times 

  

	 	•	 	Secondary and Tertiary packaging 

  

	 	•	 	Shells vs shrink 

  

	 	•	 	Versioning 

  

	 	•	 	Sourcing Internal to RPB network (provided it does not affect another RPB’s production volume or any other Coca-Cola bottler’s access to optimal sourcing under the approved National Sourcing Plan)

  

	 	•	 	Inventory Build Strategies 

  

	 	•	 	Warehousing Capacity Management 

  

	 	•	 	Short Term Planning 

  

	 	•	 	Demand/Supply/Production 

  

	 	•	 	Order Management 

  
 12 

Classified - ConfidentialEX-10.2

 Exhibit 10.2 
  

 
  

					
	 LOUIS A. MARTIN

SENIOR VICE PRESIDENT

SYSTEM EVOLUTION
	 		  	 P. O. BOX 1734

ATLANTA, GA 30301

            

 
 404 676-0662

FAX 404-598-0662

 October 30, 2015 

Henry W. Flint 
 President and Chief Operating Officer 

Coca-Cola Bottling Co. Consolidated 
 4100 Coca-Cola Plaza 

Charlotte, NC 28211 
 Re: CCBCC’s Request
for Certain Advance Waivers for Ancillary Businesses under the Comprehensive Beverage Agreement 
 Dear Hank: 

This Letter Agreement amends, restates and replaces in its entirety that certain Letter Agreement dated May 23, 2014 “Re:
CCBCC’s Request for Certain Advance Waivers for Ancillary Businesses under the Comprehensive Beverage Agreement.” 
 In light
of the specific facts and circumstances related to its corporate structure, Coca-Cola Bottling Co. Consolidated (“CCBCC”) has asked that The Coca-Cola Company (“TCCC”) provide certain advance waivers under the
Comprehensive Beverage Agreement, as may be amended from time to time (“CBA”) with respect to CCBCC’s acquisition or development of certain lines of business involving beverage activity that would otherwise be prohibited under
the CBA. Defined terms used in this Letter Agreement have the meaning specified in the CBA, unless otherwise noted. 
 We have agreed that
the provision or sale of Beverages, Beverage Components and other beverage products not authorized or permitted by the CBA will be permitted if provided or sold solely for internal consumption by employees and guests of CCBCC and its Affiliates.
Generally, CCBCC and its Affiliates would intend and anticipate that Covered Beverages would be offered in every beverage category in which TCCC participates. 

In connection with the distribution territory expansion contemplated for CCBCC by those certain Letters of Intent dated April 15, 2013
and May 12, 2015 between CCBCC and TCCC and as a condition to the prior consent of TCCC to the potential acquisition or development of certain 

 
lines of business identified in Section 2 of this Letter Agreement, CCBCC hereby agrees to a “Focus Period.” The Focus Period began on May 23, 2014 upon execution of
the CBA for Johnson City, TN and Morristown, TN territories, and will continue until January 1, 2020. 
 1. During the Focus Period,
CCBCC and its Affiliates will not acquire or develop any line of business without TCCC prior written consent, which consent will not be unreasonably withheld. However, during the Focus Period, CCBCC or any of its Affiliates may continue to: 

 

	 	A.	develop the lines of business listed on Attachment A to this Letter Agreement (the “Existing Lines of Business”) and, upon advance written notice to TCCC, may acquire a “bolt on” (i.e.,
acquisition of a business in the same line of business) to any Existing Line of Business, so long as, (i) in the case of any business other than Red Classic Services LLC, any such development or acquisition refrains from using any delivery
vehicles, cases, cartons, coolers, vending machines or other equipment bearing TCCC’s Trademarks and assigning personnel or management whose primary duties relate to delivery or sales of Covered Beverages or Related Products in the Territory
(other than executive officers of CCBCC), and (ii) in the case of Red Classic Services LLC, CCBCC and its Affiliates comply with the conditions set forth in Attachment A; and 

 

	 	B.	to the extent not prohibited under CCBCC’s Master Bottle Contract and other preexisting contracts with TCCC and its Affiliates, provide, outside of the Territory (as defined in the CBA), contract manufacturing
services for Beverages, Beverage Products and other beverage products that may be distributed, sold, marketed, dealt in or otherwise used or handled by third parties. 

2. After the expiration of the Focus Period, 
  

	 	A.	Consent of TCCC (which consent will not be unreasonably withheld) will only be required for acquisition or development by CCBCC or its Affiliates in the Territory of: 

 

	 	i.	any grocery, quick service restaurant, or convenience and petroleum store business engaged in the sale of Beverages, Beverage Components and other beverage products not otherwise authorized or permitted by the CBA
(“Prohibited Beverages”); or 

  

	 	ii.	 any other line of business engaged in the preparation, distribution, sale, dealing in or otherwise using or handling (collectively, “Beverage
Activities”) of Prohibited Beverages in which all Beverage Activities constitute in the aggregate more than ten percent (10%) of the net sales of such ancillary business provided such consent will not be required for

	 	
any bolt on acquisition or development by Red Classic Services LLC provided the conditions set forth in Attachment A to this Letter Agreement will continue to apply to any such acquisition
or development. 

  

	 	B.	In all other cases, CCBCC or its Affiliates may develop or acquire any line of business in the Territory without prior consent of TCCC, so long as CCBCC and its Affiliates refrain from using any delivery vehicles,
cases, cartons, coolers, vending machines or other equipment bearing TCCC’s Trademarks and assigning personnel or management whose primary duties relate to delivery or sales of Covered Beverages or Related Products in the Territory (other than
executive officers of CCBCC) with respect to such line of business in the Territory and provide TCCC with at least 30 days prior written notice of the proposed line of business. If requested by TCCC within five business days of TCCC’s receipt
of such notice, the two most senior executive officers of CCBCC will discuss the proposed line of business with representatives of TCCC. 

As used herein “CBA” means the Comprehensive Beverage Agreement being entered into on May 23, 2014 in connection with the
Johnson City, TN and Morristown, TN territories and any other Comprehensive Beverage Agreement, or similar agreement, entered into between the parties or their affiliates for other territories subsequent to that date, as any of such agreements may
be amended or restated from time to time. This Letter Agreement will apply to each CBA or amended CBA entered into by CCBCC, including those entered into after the date of this Letter Agreement. 

Except as expressly set forth in this Letter Agreement, as applied solely to CCBCC, TCCC expressly reserves and does not waive hereunder any
and all rights under the CBA or any other agreement. TCCC and CCBCC agree that the contents of this Letter Agreement are confidential and that none of the parties may discuss or disclose any of the provisions herein without the express written
permission of the other parties, except (i) as required under applicable securities laws, legal process or other laws, (ii) that each party may disclose the contents of this Letter Agreement to those of its directors, officers, employees,
lenders, potential financing sources and representatives of its legal, accounting and financial advisors (the persons to whom such disclosure is permissible being collectively referred to herein as “Representatives”) who have a need to
know such information as long as such Representatives are informed of the confidential and proprietary nature of the information. The parties agree that the merger, integration and similar provisions in each CBA stating that such CBA encompasses all
agreements between the parties and supersedes all prior agreements will not have any effect on the validity and continuance of the provisions of this Letter Agreement, and TCCC and CCBCC agree never to assert that this Letter Agreement has been
superseded by a merger, integration or similar provision of any CBA unless the parties specifically state in such CBA that they intend to modify or supersede this Letter Agreement by making specific reference to this Letter Agreement. 

[Remainder of page intentionally left blank; signature page follows] 

 
	
	Sincerely,
	
	 /s/ Louis A. Martin

	Louis A. Martin
	Senior Vice President
	System Evolution
	Coca-Cola North America

 Accepted and Agreed to: 

COCA-COLA BOTTLING CO. CONSOLIDATED 
  

			
	By:	 	 /s/ Henry W. Flint

		 	Henry W. Flint
		 	President and Chief Operating Officer
		 	Coca-Cola Bottling Co. Consolidated

 Signature Page to Amended and Restated Letter Agreement Regarding CCBCC’s Request for Certain Advance
Waivers for Ancillary Businesses under the Comprehensive Beverage Agreement 

 Attachment A 

Existing Lines of Business 
  

	1.	Red Classic Services LLC – An over-the-road transportation and freight brokerage business, as described and conditioned in Schedule 14A Part 2 of the CBA for Johnson City, TN and Morristown, TN, executed at the
same time as this Letter Agreement, which description and conditions may be amended by agreement of the parties in future CBAs. 

  

	2.	Swift Water Logistics, Inc. – A broad array of logistical supply chain products and services. This business includes (i) assessing supply chain systems, (ii) advising regarding potential solutions,
(iii) developing, manufacturing, integrating and implementing processes, tools and solutions across the supply chain, and (iv) providing supply chain and operational services, including supply chain management, project management, network
strategy planning, territory planning and dispatch management, warehouse management and delivery and merchandising. 

  

	3.	Data Ventures Inc. - Develops and provides analytics product suites, analytics services and consulting services for a wide variety of industries. These product suites and services include data warehousing and access
solutions, shopper segmentation/clustering analytics, out of stock/shelf analytics, shopper behavior analytics, pricing and promotion analytics and product assortment analytics. 

 

	4.	Equipment Reutilization Solutions LLC - Provides manufacturing and maintenance services for heating, ventilation and air conditioning systems, including equipment employing refrigeration systems. These services include
manufacturing, installation, periodic maintenance service, and repair of mechanical and fluid systems employed in the beverage business, such as fountain dispenser equipment, vending equipment, and fast lane/cold carton merchandizing equipment used
in the beverage and other businesses. 

  

	5.	Third-party logistics services (“3PL Services”) and fourth-party logistics services (“4PL Services”). 3PL Services include the performance of outsourced logistics activities, such as warehousing,
inventory management, pick and pack services, and other value added services including those that have been performed traditionally within an organization itself. 4PL Services include acting as an integrator that assembles the resources,
capabilities and technology to design and build, execute and manage comprehensive supply chain solutions. 

  

	6.	Management services and shared services to third parties such as cooperatives, joint ventures and other entities engaged in bottling, beverage and/or other businesses that produce or distribute beverage products under
license from TCCC.

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