Document:

coke-ex1062_571.htm

Exhibit 10.62

FIRST AMENDMENT TO THE

LIMITED LIABILITY COMPANY OPERATING AGREEMENT OF

COCA-COLA BOTTLERS' SALES & SERVICES COMPANY LLC

 

This First Amendment to the Limited Liability Company Operating Agreement of Coca-Cola Bottlers' Sales & Services Company LLC (the “First Amendment”) is made among all Coca-Cola Bottlers doing business in the United States that are Members of the Company. Capitalized terms not otherwise defined herein shall have the same meanings as set forth in that certain Limited Liability Operating Agreement of Coca-Cola Bottlers' Sales & Services Company LLC executed by the Members and made effective as of January 1, 2003 (the “Operating Agreement”).

 

WHEREAS, on or about January 1, 2003, the Members executed the Operating Agreement; and

 

WHEREAS, The Coca-Cola Company (“TCCC”) has executed a Procurement Agency Agreement with the Company made effective as of January 1, 2003 (the “TCCC PAA”) pursuant to which TCCC has named the Company as its exclusive agent for procurement of certain items in connection with TCCC's North American operations; and

 

WHEREAS, the Members now desire to grant TCCC certain rights with respect to the management of the Company's Procurement Division, as more specifically set forth in, and subject to the conditions of, this First Amendment, and to amend the Operating Agreement as set forth herein.

 

NOW, THEREFORE, the Members, in accordance with Section 16.10 of the Operating Agreement, hereby amend the terms of the Operating Agreement as follows:

 

ARTICLE I

ADDITION OF A CCNA DIRECTOR

 

Section 1.1 Selection of a CCNA Director. Notwithstanding anything in the Operating Agreement to the contrary, TCCC, acting by and through its Coca-Cola North America (“CCNA”) division, shall have the right to designate one (1) natural person who shall be a member of senior management of CCNA to serve as a Director of the Company (the “CCNA Director”). The CCNA Director shall exercise only those rights and duties expressly set forth in this First Amendment. Any vacancy in the position of CCNA Director shall he filled promptly by CCNA.

 

Section 1.2 Attendance at Meetings: Voting Rights.

 

(i) Subject to the conditions of this First Amendment, the CCNA Director shall be entitled to attend all meetings of the Board, and shall have the same right to appoint a proxy as that afforded all other Directors pursuant to the Operating Agreement.

 

 

 

(ii) The CCNA Director shall be entitled to exercise one (1) vote as a member of the Board, provided, however, that such right to vote is limited solely to items which require Board action that are duly determined in accordance with clause (iv) below to be Procurement Matters prior to any vote on such item as provided herein. The CCNA Director shall have no right to vote on any matters requiring Board action other than Procurement Matters.

 

(iii) For purposes of determining the existence of a Director Regular Vote or a Director Extraordinary Vote on matters that are determined to be Procurement Matters as set forth herein, the total number of votes which may be cast shall include the one (1) vote which the CCNA Director is entitled to cast hereunder. For all other purposes, including the determination of a Director Regular Vote or a Director Extraordinary Vote on any matter that is not a Procurement Matter, and in all instances for purposes of determining the existence or lack of a quorum, the total number of votes which may be cast shall not include the one (1) vote exercisable by the CCNA Director hereunder.

 

(iv) For purposes of this First Amendment, a “Procurement Matter” shall be defined as any item that requires Board action under the Operating Agreement that pertains solely to the operation of the Company's Procurement Division and/or the Procurement Policies of the Company, as determined by the Chairman of the Board (the “Chairman”). The Board, acting without the participation of the CCNA Director and upon the request of any two or more Directors may, by Director Regular Vote, overrule any determination made by the Chairman with respect to an item being, or not being, a Procurement Matter, and the decision of the Board thereby shall be final and binding. In the absence of a sufficient vote to overturn the decision of the Chairman, the decision of the Chairman shall be final and binding.

 

(v) The CCNA Director may be paid his or her reasonable expenses, if any, of attendance at any meeting of the Board, but only to the extent that all other Directors are so paid by the Company.

 

(vi) Upon the request of the Chairman, the CCNA Director may be excluded from participation and/or attendance in any portion of any Board meeting which does not relate solely to a Procurement Matter, and the CCNA Director may be excluded from the right to review or have access to any and all confidential Company documents which relate to any issue that is not a Procurement Matter. Notwithstanding the foregoing, the CCNA Director shall be excluded from participation or attendance in any portion of any Board meeting during which the Board considers any issue relating, in the reasonable opinion of the Chairman, to the Company's Distribution Division. Nothing in this Section 1.2(vi) shall be interpreted as limiting or affecting any right to review agreements specified in the TCCC PAA.

 

Section 1.3 Disqualification of the CCNA Director. The CCNA Director shall be immediately disqualified, and TCCC's right to appoint the CCNA Director as provided in this First Amendment shall immediately expire, upon the occurrence of any of the following events: (i) the discontinuation, expiration or early termination, for any reason, of the CCNA PAA; (ii) for any reason, the Company ceases to be authorized to act as agent for TCCC's North American operations in connection with procurement of the items originally listed in Section 9 of the 

 

 

CCNA PAA; (iii) CCE becomes an Affiliate of TCCC; or (iv) the Company discontinues the activities of the Procurement Division.

 

Section 1.4 No Agency. The CCNA Director shall not have the authority to bind the Company, to execute contracts or to expend funds unless such action has been authorized by the requisite Director vote.

 

ARTICLE II

MISCELLANEOUS

 

Section 2.1 Survival. Except as expressly set forth herein, all terms and conditions set forth in the Operating Agreement shall remain in full force and effect pursuant to their terms. In the event of any conflict between the terms of this First Amendment and the terms of the Operating Agreement, the terms of this First Amendment shall prevail.

 

Section 2.2 No Implied Rights or Duties. Neither TCCC nor the CCNA Director shall have any other or further rights with respect to the Company and/or the Members, other than those expressly set forth in this First Amendment or otherwise agreed to in writing by TCCC and a duly authorized representative of the Company. Without limiting the applicability of the preceding sentence, at no time shall TCCC or any Affiliate of TCCC become, or be deemed to be, a Member of the Company.

 

Section 3.3 Counterparts. This First Amendment may be executed in any number of counterparts, and by facsimile or portable document format (pdf) transmission, with the same effect as if all parties hereto had signed the same document. All counterparts shall be construed together and shall constitute one instrument.

 

Section 3.4 Integration. This First Amendment constitutes the entire agreement among the parties hereto pertaining to the subject matter hereof and supersedes all prior agreements and understandings pertaining thereto.

 

Section 3.5 Governing Law. This First Amendment and the rights of the parties hereunder shall be interpreted in accordance with the laws of the State of Delaware, and all rights and remedies shall be governed by such laws without regard to principles of conflict of laws.

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above stated.

 

Agreed to and accepted this 5th day of November, 2007.

 

Legal Name of Member (Bottler):  Coca-Cola Bottling Co. Consolidated

 

	
By:
	
 
	
/s/ William B. Elmore

	
 
	
 
	
 

	
Print Name:
	
 
	
William B. Elmore

	
 
	
 
	
 

	
Title:
	
 
	
President & COO

	
 
	
 
	
 

	
Date:
	
 
	
November 5, 2007coke-ex1063_573.htm

Exhibit 10.63

SECOND AMENDMENT TO THE

LIMITED LIABILITY COMPANY OPERATING AGREEMENT OF

COCA-COLA BOTTLERS’ SALES & SERVICES COMPANY LLC

 

THIS SECOND AMENDMENT (this “Second Amendment”) TO THE LIMITED LIABILITY COMPANY OPERATING AGREEMENT OF COCA-COLA BOTTLERS’ SALES & SERVICES COMPANY LLC, a Delaware limited liability company (the “Company”), is entered into by and among the Members of the Company that are signatories hereto. Capitalized terms used but not otherwise defined herein shall have the respective meanings ascribed thereto in the Operating Agreement (as defined below).

 

WHEREAS, certain Coca-Cola Bottlers doing business in the United States are the Members of the Company as of the date hereof pursuant to the terms of the Limited Liability Company Operating Agreement, dated effective as of January 1, 2003 (the “Operating Agreement”), as amended by that certain First Amendment to the Operating Agreement as adopted and ratified by the Members in 2007 (the “First Amendment”);

 

WHEREAS, the Operating Agreement and the First Amendment contain certain terms and conditions with respect to certain matters involving The Coca-Cola Company (“TCCC”);

 

WHEREAS, on February 25, 2010, Coca-Cola Enterprises Inc., a Delaware corporation (“CCE”), TCCC and certain other parties entered into a Business Separation and Merger Agreement (as the same may be amended, restated, modified and/or supplemented from time to time, the “TCCC/CCE Merger Agreement”) pursuant to which, among other things, CCE will become a wholly owned subsidiary of TCCC and may be renamed Coca-Cola Refreshments (“CCR”); for the remainder of this agreement, CCE will be referred to as of the time of closing and thereafter as “CCE/CCR”; and

 

WHEREAS, the Members now desire to amend the Operating Agreement and the First Amendment in order to address certain effects that otherwise would result in connection with the transactions contemplated by the TCCC/CCE Merger Agreement.

 

NOW, THEREFORE, for and in consideration of the premises and the mutual covenants and agreements set forth herein, and for other consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged, the Members, in accordance with Section 16.10 of the Operating Agreement, intending to be legally bound, hereby amend the Operating Agreement and the First Amendment as follows:

 

1. CCNA Director. In accordance with the First Amendment, the CCNA Director (as defined in the First Amendment) shall be disqualified, and TCCC’s right to appoint the CCNA Director as provided in the First Amendment shall expire, upon the the consummation of the transactions contemplated by the TCCC/CCE Merger Agreement, and, upon such consummation, the First Amendment shall have no further force or effect. Notwithstanding the foregoing, upon the the consummation of the transactions contemplated by the TCCC/CCE Merger Agreement, TCCC, acting by and through its Coca-Cola North America (“CCNA”) division, shall have the right to designate one (1) natural person who shall be a member of senior 

 

 

management of CCNA to serve as a non-voting Director of the Company (the “CCNA Non-Voting Director”). The CCNA Non-Voting Director shall have the same rights and privileges of each other Director (including the right to attend meetings and receive notices thereof), except that (a) the CCNA Non-Voting Director shall not have the right to cast a vote or consent with respect to the Company and (b) the CCNA Non-Voting Director shall not be considered a Director for purposes of determining whether a quorum is present and/or whether a required vote is obtained.

 

2. Effect of TCCC/CCE Merger Agreement. Notwithstanding anything to the contrary contained in the Operating Agreement, (a) CCE/CCR shall not be disqualified as a Member as a result of the transactions contemplated by the TCCC/CCE Merger Agreement, (b) CCE/CCR shall not be deemed to be an “Affiliate” of TCCC for purposes of the Operating Agreement as a result of, or following the consummation of, the transactions contemplated by the TCCC/CCE Merger Agreement, and (c) TCCC shall not be deemed to be an “Affiliate” of CCE/CCR for purposes of the Operating Agreement as a result of, or following the consummation of, the transactions contemplated by the TCCC/CCE Merger Agreement. Without in any way limiting the foregoing:

 

	
 
	
(i)
	
CCE/CCR shall not be obligated to sell and the Company shall not be obligated to purchase the Units of CCE/CCR as a result of the transactions contemplated by the TCCC/CCE Merger Agreement;

 

	
 
	
(ii)
	
Following the consummation of the transactions contemplated by the TCCC/CCE Merger Agreement, CCE/CCR shall continue to be a Member, subject to the applicable terms and conditions of the Operating Agreement; and

 

	
 
	
(iii)
	
Following the consummation of the transactions contemplated by the TCCC/CCE Merger Agreement, CCE/CCR shall continue to have the right to elect up to eight National Bottler Directors with the authority, in the aggregate, to cast eight votes, subject to the applicable terms and conditions of the Operating Agreement.

 

3. Dissolution Right. Following the consummation of the transactions contemplated by the TCCC/CCE Merger Agreement, the Company may be dissolved and its affairs wound up upon the affirmative vote a majority of the Regional Bottler Directors and the Mainstream Bottler Directors pursuant to Section 15.2(iii) of the Operating Agreement.

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4. Certain Conflicting Interest Transactions. Notwithstanding anything to the contrary contained in the Operating Agreement, and in lieu of any other consent or approval that may be required by the terms of the Operating Agreement, following the consummation of the transactions contemplated by the TCCC/CCE Merger Agreement, the Company shall not take any of the following actions unless authorized to do so by a majority of the Regional Bottler Directors and the Mainstream Bottler Directors (even though such majority is less than a quorum):

 

	
 
	
(a)
	
the entering into of any material contract of any nature with TCCC, CCE/CCR, and/or any of their respective Affiliates, and, in each case, any material amendment, early termination or renewal thereof; or

 

	
 
	
(b)
	
any determination required to be made by or on behalf of the Company pursuant to Section 5 of the TCCC PAA (as defined in the First Amendment) and/or Section 4 of that certain Procurement Agency Agreement by and between the Company and CCE, dated effective as of April 2, 2003.

 

5. Effectiveness. In accordance with Section 16.10 of the Operating Agreement, subject to Section 6 below, this Second Amendment shall become effective upon the execution and delivery to the Company of written counterparts to this Second Amendment from Members holding not less than 95% of the outstanding Units of all the Members, which must include Mainstream Bottlers representing a majority of the number of all Mainstream Bottlers (without regard to the number of Units held by such Members).

 

6. Termination. If the TCCC/CCE Merger Agreement is terminated in accordance with its terms, this Second Amendment shall be void ab initio.

 

7. Conflicting Terms; Limitation of Amendment. In the event of any conflict or inconsistency between the terms of this Second Amendment, on the one hand, and the Operating Agreement and/or the First Amendment, on the other hand, the terms of this Second Amendment shall control. Except as otherwise expressly set forth herein, all terms and conditions set forth in the Operating Agreement shall remain in full force and effect pursuant to their terms.

 

8. Counterparts. This Second Amendment may be executed in any number of counterparts, and by facsimile or portable document format (pdf) transmission, with the same effect as if all parties hereto had signed the same document. All counterparts shall be construed together and shall constitute one instrument.

 

9. Entire Agreement. This Second Amendment represents the entire agreement and understanding among the parties hereto regarding the subjects hereof. Any prior or contemporaneous written or oral communications between or among the parties hereto are superseded hereby. Each party hereto specifically represents and warrants that this Second Amendment is executed without reliance on any statement or representation of fact or opinion by any party hereto, the Company or any representative thereof, except as otherwise expressly set forth herein.

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10. Governing Law. This Second Amendment shall be governed by, and construed in accordance with, the laws of the State of Delaware without regard to principles of conflicts of law.

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IN WITNESS WHEREOF, the Member set forth below has executed this Second Amendment as of the date set forth below.

 

Agreed to and adopted this 24th day of June, 2010

 

Legal Name of Member: Coca‐Cola Bottling Co. Consolidated

 

	
By:  
	
 
	
/s/ Steven D. Westphal

	
 
	
 
	
 

	
Name: 
	
 
	
Stephen D. Westphal

	
 
	
 
	
 

	
Title: 
	
 
	
Vice President

 

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