This month’s featured history is the 1916 contract with the Coca-Cola Company. William Mark Mauldin had purchased the Rock Hill Coca-Cola territory from Luther Snyder eight years prior to this contract. It is Mauldin’s first formal contract with Coca-Cola.
Text of the Contract
The contract reads:
THIS AGREEMENT, Made and entered into, on the 12th day of May 1916, by and between THE COCA-COLA BOTTLING COMPANY, a Corporation organized and existing under the laws of the State of Tennessee, having its principal office, however, in the City of Atlanta, State of Georgia, as party of the first part, and W. M. Mauldin of the State of South Carolina County of York and City of Rock Hill as party of the second part;
THAT WHEREAS, on the 24th day of November 1908, a contract was entered into by and between Charlotte Coca-Cola Bottling Company and W. M. Mauldin of Rock Hill S. C. by which Charlotte Coca-Cola Bottling Co. conveyed to the said W. M. Mauldin of Rock Hill S. C. certain rights in regard to the bottling of Coca-Cola in certain described territory; and
WHEREAS, it is deemed desirable by the parties hereto to cancel said contract, and enter into a new contract in lieu thereof; and
WHEREAS, party of the first part has received from THE COCA-COLA COMPANY certain rights and privileges in regard to the bottling and selling of bottled Coca-Cola in the territory described in a certain contract now in existence between Charlotte Coca-Cola Bottling Co. and W. M. Mauldin of Rock Hill, S. C.
AND WHEREAS, party of the first part wishes to convey to party of the second part the rights in certain described territory which it has received from THE COCA-COLA COMPANY under the contract between The Coca-Cola Company and the party of the first part herein:
NOW, THEREFORE, For and in consideration of mutual benefits and promises from one to the other, and other valuable consideration, the receipt of which is hereby acknowledged, IT IS AGREED:
FIRST: That party of the first part hereby give and conveys to party of the second part the right that it received from THE COCA-COLA COMPANY, to use the trade-mark name COCA-COLA, and all labels and designs pertaining thereto, in connection with the product “Bottled Coca-Cola” in the territory heretofore obtained by party of the second part from Charlotte Coca-Cola Bottling Company, and party of the first part agrees not to convey, assign or transfer the right of usage of said name in said territory to any other party whatsoever; and said party of the first part agrees to obtain and furnish to party of the second part, and only to obtain, for the territory herein referred to, sufficient syrup for bottling purposes to meet the requirements of party of the second part in the territory now owned or controlled by party of the second part, provided party of the first part can obtain such syrup from the Coca-Cola Company. Nothing herein, however, shall give party of the second part any interest in the name COCA-COLA, labels, etc., except the right of usage in connection with Bottled Coca-Cola, nor shall this contract in any way interfere with the use of said name COCA-COLA, labels, etc., in connection with the fountain product of THE COCA-COLA COMPANY, it being understood and agreed that the use herewith given shall be confined to the bottled product; the name, labels, etc., in connection with the fountain product having been reserved by THE COCA-COLA COMPANY.
SECOND: Party of the first part does hereby select party of the second part as its sole and exclusive customer and licensee for the purpose of bottling and selling the Bottlers’ Syrup COCA-COLA, in the territory heretofore acquired by said party of the second part.
THIRD: Party of the first part does hereby give to party of the second part a license to use the distinctive Coca-Cola bottle adopted or to be adopted within the territory herein referred to, but said right shall end at such time as this contract is no longer in force or when it shall be terminated by the parties hereto or otherwise, provided, however, all conditions and terms of this contract are fully complied with by party of the second part.
FOURTH: In consideration of the above conveyance of the rights above described in Paragraphs One, Two and Three and further, in consideration of the consent of the party of the first part to use of the name COCA-COLA as a part of the business name of party of the second part, and its further consent to the use by party of the second part of the trademark COCA-COLA on the product so sold, party of the second part agrees:
(a) Not to manufacture, deal in, sell, offer for sale, use or handle, nor attempt to do so, either directly or indirectly, any product that is a substitute bottle, and none other, adopted or to be adopted by party of the first part; to use said distinctive bottle and none other, in bottling COCA-COLA, as soon as the present stock of bottles has been used; and not to use said distinctive bottle for any other purpose than the bottling of COCA-COLA, and not in any territory except as herein referred to. The party of the first part agrees that the privilege of manufacturing this distinctive bottle will be granted to at least three reputable concerns, if a sufficient number of search firms remain in business, in order to secure for party of the second part a reasonable price for such bottles, and a prompt execution of its orders.
(i) Party of the second part hereby agrees to use and purchase such crowns for the bottling of COCA-COLA as may be designated and approved by party of the first part. The party of the first part agrees to designate at least two reputable concerns to manufacture such crowns, if a sufficient number of such firms remain in business, to secure to party of the second part reasonable prices and prompt service in the execution of its orders, and party of the second part has the right to purchase from any one of the concerns so designated.
FIFTH: It is further agreed that so long as said party of the second part shall comply with the terms of this contract, the rights, privileges and immunities hereby granted to said second party shall remain in full force and effect.
SIXTH: Failure of party of the second part to properly and vigorously push the sale of bottled COCA-COLA shall be deemed a violation of this contract and party of the second part shall have the option to terminate same, by written notice, addressed to the last known place of business of party of the second part.
SEVENTH: In consideration of the above and foregoing it is agreed by and between the parties hereto, that upon a failure of either party to this contract to perform its obligations under this instrument, according to any stipulations or conditions herein, and if said failure shall remain for thirty days after due notice sent by mail to the last named place of business of the party violating the stipulations and conditions of this contract, then the other party shall have the right to terminate this contract after thirty days written notice, which said notice must be sent by registered mail to the last known place of business of the party so violating this contract.
EIGHTH: If for any reason, this contract shall be legally terminated by either party, party of the second part shall at once turn over to party of the first part all Coca-Cola syrup which party of the second part may have on hand, and any or all matters and things that may have the trade-mark name COCA-COLA thereon, upon the payment by party of the first part, to party of the second part, of a fair and reasonable market value therefor, and if party of the first part does not desire to purchase the property, matters or things, bearing the trade-mark COCA-COLA, then the party of the second part may dispose of same to any other authorized bottle of Coca-Cola, and if said contract is terminated legally or otherwise, party of the second part agrees that he will not exercise, or attempt to exercise any rights or privileges hereunder.
NINTH: It is further agreed that this contract shall not be assigned, transferred or conveyed, in whole or in part, without the written consent of party of the first part. This provision, however, is not to apply to any transfers, assignments, or conveyances heretofore made, and which have been consented to by party of the first part and The Coca-Cola Company.
TENTH: The right hereby conveyed to party of the second part shall, with the consent of party of first part, be transferable rights, which shall go to the heirs, executors or administrators of party of the second part and shall be binding upon the successors of party of first part.
ELEVENTH: It is further agreed that all prior contracts licenses and agreements concerning the bottling of Coca-Cola or ipso facto canceled by the signing of this agreement, except for purpose of such a reference as may be necessary to determine the territory herein referred to.
IN WITNESS WHEREOF, the parties hereto have hereun to set their hands and seals, IN TRIPLICATE, the day and year first above written.