Common use of Delivery Option Clause in Contracts

Delivery Option. (a) Notwithstanding anything to the contrary in Section 5.1 above, AB shall have the option, exercisable individually by AB from time to time with respect to each Brewery and each Production Facility, to (i) control the selection of the freight carrier and the insurance provider used for all or a portion of the shipments of Bottles from such Production Facility or delivered to such Brewery, or (ii) to change the freight and delivery terms to FOB applicable Production Facility. AB's exercise of either of the foregoing options is expressly conditioned on each of the following: (i) AB may only exercise either of the options in a way that does not (A) result in an increase in Anchor's aggregate freight costs for deliveries to and from each of its bottle production facilities situated in the United States, (B) result in any increase in Anchor's other operating costs, or (C) have an adverse effect upon Anchor's production and delivery efficiencies; (ii) AB may only exercise either of the options upon expiration of any existing delivery contract in place between Anchor and any third party applicable to any of the foregoing deliveries; provided, however, that upon AB's request Anchor shall undertake reasonable efforts to negotiate the *** subject only to the *** Anchor shall notify AB of the *** and AB may then choose to *** in order to satisfy this condition or *** in which event this condition *** and (iii) solely in the case of AB's exercise of its option to convert the freight and delivery terms to FOB applicable Production Facility, AB shall be responsible for arranging and paying for all related freight and insurance charges and title and risk of loss will be deemed to pass to AB upon pick-up of the Bottles at the applicable Production Facility. (b) Anchor shall notify AB within *** before the expiration or renewal of any such existing delivery contract, and AB shall have *** after receiving such notice in which to exercise either of the options specified in Section 5.2(a) by so notifying Anchor in writing. Failif ure by AB to exercise either of its options during such *** period shall preclude it from exercising such options pursuant to the terms of Section 5.2(a) above *** (c) Once either of the options referenced in Section 5.2(a) above has been exercised by AB pursuant to the terms thereof, AB shall at anytime thereafter, upon no less than sixty (60) days' prior written notice to Anchor, be entitled to terminate the parties' respective obligations with respect to deliveries of Bottles resulting from AB's exercise of such option and designate that the parties' respective obligations with respect to such deliveries shall again be governed by the terms of Section 5.1; provided, however, that AB agrees to reimburse Anchor for any documented increase in Anchor's Manufacturing Costs resulting directly from Anchor again abiding by the terms of Section 5.1. ---------- *** Portions hereof have been omitted and filed separately with the Commission pursuant to a request for confidential treatment in accordance with Rule 24-b.

Delivery Option. (a) Notwithstanding anything to the contrary in Section 5.1 above, AB shall have the option, exercisable individually by AB from time to time with respect to each Brewery and each Production Facility, to (i) control the selection of the freight carrier and the insurance provider used for all or a portion of the shipments of Bottles from such Production Facility or delivered to such Brewery, or (ii) to change the freight and delivery terms to FOB applicable Production Facility. AB's exercise of either of the foregoing options is expressly conditioned on each of the following: (i) AB may only exercise either of the options in a way that does not (A) result in an increase in Anchor's aggregate freight costs for deliveries to and from each of its bottle production facilities situated in the United States, (B) result in any increase in Anchor's other operating costs, or (C) have an adverse effect upon Anchor's production and delivery efficiencies; (ii) AB may only exercise either of the options upon expiration of any existing delivery contract in place between Anchor and any third party applicable to any of the foregoing deliveries; provided, however, that upon AB's request Anchor shall undertake reasonable efforts to negotiate the *** subject only to the *** Anchor shall notify AB of the *** and AB may then choose to *** in order to satisfy this condition or *** in which event this condition *** and (iii) solely in the case of AB's exercise of its option to convert the freight and delivery terms to FOB applicable Production Facility, AB shall be responsible for arranging and paying for all related freight and insurance charges and title and risk of loss will be deemed to pass to AB upon pick-up of the Bottles at the applicable Production Facility. (b) Anchor shall notify AB within *** before the expiration or renewal of any such existing delivery contract, and AB shall have *** after receiving such notice in which to exercise either of the options specified in Section 5.2(a) by so notifying Anchor in writing. Failif ure by AB to exercise either of its options during such *** period shall preclude it from exercising such options pursuant to the terms of Section 5.2(a) above *** (c) Once either of the options referenced in Section 5.2(a) above has been exercised by AB pursuant to the terms thereof, AB shall at anytime thereafter, upon no less than sixty (60) days' prior written notice to Anchor, be entitled to terminate the parties' respective obligations with respect to deliveries of Bottles resulting from AB's exercise of such option and designate that the parties' respective --------- *** Portions hereof have been omitted and filed separately with the Commission pursuant to a request for confidential treatment in accordance with Rule 24-b. obligations with respect to such deliveries shall again be governed by the terms of Section 5.1; provided, however, that AB agrees to reimburse Anchor for any documented increase in Anchor's Manufacturing Costs resulting directly from Anchor again abiding by the terms of Section 5.1. ---------- *** Portions hereof have been omitted and filed separately with the Commission pursuant to a request for confidential treatment in accordance with Rule 24-b..