QuickLinks
 -- Click here to rapidly navigate through this document

EXHIBIT 10.3  


 
 

THE PERFORMANCE INCENTIVE PLAN
  OF THE COCA-COLA COMPANY    
    


as amended and restated effective January 1, 2004  


I. Plan Objective  


        The purpose of The Performance Incentive Plan of The Coca-Cola Company is to promote the interests of The Coca-Cola Company (the
"Company") by providing additional incentive for participating officers and other key employees who contribute to the improvement of operating results of the Company and to reward outstanding
performance on the part of those individuals whose decisions and actions most significantly affect the growth and profitability and efficient operation of the Company. 


II. Definitions  


        The terms used herein will have the following meanings: 


        "Award"
means an amount awarded under the Plan to a Participant based upon the Participant's base salary and as calculated pursuant to Section VI of the Plan. 


        "Board"
means the Board of Directors of the Company. 


        "Company"
means The Coca-Cola Company. 


        "Compensation
Committee" means the Compensation Committee of the Board. 


        "Employee"
means any person regularly employed on a full-time basis by the Company or a Related Company. 


        "Management
Committee" means the committee appointed by the Compensation Committee to administer the Plan. 


        "Participant"
means an Employee who satisfies the eligibility requirements set forth in Section IV of the Plan. 


        "Plan"
means this Performance Incentive Plan of The Coca-Cola Company. 


        "Plan
Year" means the 12-month period beginning January 1 and ending December 31. 


        "Related
Company" means any corporation or business organization in which the Company owns, directly or indirectly, during the relevant time, either (i) 50% or more of the voting
stock or capital where such entity is not publicly held, or (ii) an interest which causes the other entity's financial results to be consolidated with the Company's financial results for
financial reporting purposes. 


        "SAR"
means stock appreciation rights granted under this Plan. An SAR entitles the Participant to receive, in KO Common Stock, value equal to the excess of: a) the fair market
value of a specified number of shares of KO Common Stock at the time of exercise; over b) an exercise price established by the Compensation Committee. 


III. Administration  


        The Plan will be administered by the Compensation Committee and/or the Management Committee. No person, other than members of these committees, shall have any
discretion concerning decisions regarding the Plan. The Compensation Committee and/or the Management Committee, in its sole discretion, will determine which of the Participants to whom, and the time
or times at which, Awards will be granted under the Plan, and the other conditions of the grant of the Awards. The provisions and conditions of the grants of Awards need not be the same with respect
to each grantee or with respect to each Award. 





 

        The
Compensation Committee will, subject to the provisions of the Plan, establish such rules and regulations as it deems necessary or advisable for the proper administration of the Plan,
and will make determinations and will take such other action in connection with or in relation to accomplishing the objectives of the Plan as it deems necessary or advisable. Each determination or
other action made or taken by the Compensation Committee or the Management Committee pursuant to the Plan, including interpretation of the Plan and the specific conditions and provisions of the Awards
granted hereunder will be final and conclusive for all purposes and upon all persons including, but without limitation, the Company, any Related Company, the Compensation Committee, the Management
Committee, the Board, officers, the affected Employees of the Company or Related Companies, and any Participant or former Participant under the Plan, as well as their respective successors in
interest. 


IV. Eligibility  


        Eligibility for participation in the Plan is limited to those Employees who can make an appreciable contribution to the attainment of overall business objectives
of the operating unit for which they work as determined in the sole discretion of the Compensation Committee or the Management Committee. An Employee is eligible to participate in the Plan if: 



	a.
	The
Employee is compensated in an amount at least equal to the minimum salary grade guideline established annually by the Management Committee.



	b.
	During
the Plan Year, the Employee is not participating in the Executive and Long-Term Performance Incentive Plan of The Coca-Cola Company.



	c.
	The
Employee is recommended for participation in the Plan by his or her immediate superior and is approved for such participation by the operating head of the Employee's unit.



	d.
	The
Employee is approved as a Participant by the Management Committee. 




        The
fact that an Employee is eligible to participate in the Plan in one Plan Year does not assure that the Employee will be eligible to participate in any subsequent year. The fact that
an Employee is eligible to participate in the Plan for any Plan Year does not mean that the Employee will receive an Award in any Plan Year. The Management Committee will determine an Employee's
eligibility for participation in the Plan from time to time prior to or during each Plan Year. 


V. Performance Goals  


        Each operating unit of the Company shall set performance goals and objectives for each Plan Year which in the aggregate form the Company's overall goals and
objectives for that Plan Year. Individual goals and objectives for each Participant will be established within the context of the goals of that Participant's operating unit. All goals shall be
established by the Management Committee. 


VI. Awards  


        An Award to a Participant will be based on a percentage of the Participant's base salary and shall be established by the Management Committee. The percentage of
base salary which constitutes an Award will increase as salary grade or level of responsibility increases. 


        The
Compensation Committee or the Management Committee shall, in each of their respective sole discretion, adjust the Award for each Participant based upon that Participant's over
achievement or under achievement in terms of his or her individual performance and the performance of the Participant's operating unit during the Plan Year. 


2





 

        An
Employee who is selected as a Participant after the beginning of a Plan Year or a Participant who retires, who dies or whose employment is otherwise terminated prior to the end of
such Plan Year will be eligible to receive a pro rata share of an Award based on the number of months of participation during any portion of such Plan Year if, in the sole discretion of the
Compensation Committee or the Management Committee, such an award is merited. 


VII. Determination and Timing of Awards  


        All Awards to Participants who are elected officers of the Company will be made by the Compensation Committee in its sole discretion. Awards to all other
Participants shall be made by the Management Committee in its sole discretion. Awards will be paid for a particular Plan Year at such time following the end of the Plan Year as shall be determined by
the Compensation Committee or the Management Committee. 


VIII. Method of Payment of Awards  


        a.    Payments of Awards.    Except as otherwise provided in this Plan, Awards for each Participant will be paid in
one of the manners set forth in (a)(1), (a)(2) or (a)(3), as determined on a case-by-case basis in the sole discretion of the Compensation Committee or the Management
Committee. Awards are subject to forfeiture until paid, as provided below. 




        1.    Cash.    The Compensation Committee or the Management Committee may, in its sole discretion, pay any Award in
cash. Awards paid in cash will be paid at the time described in Section VII above unless the Compensation Committee or the Management Committee has approved a request by a Participant to defer
receipt of any Award in accordance with Section VIII(b) below. 


        2.    Stock Options or SARs.    The Compensation Committee or the Management Committee may, in its sole discretion,
pay any Award through the grant of stock options or SARs under The Coca-Cola Company 2002 Stock Option Plan, as amended, or successor stock option plan approved by shareowners (the "Stock
Option Plan"). Any Award issued in the form of stock options or SARs shall be subject to the terms and conditions of the Stock Option Plan. 


        3.    Stock.    The Compensation Committee or the Management Committee may, in its sole discretion, pay any Award by
issuing to a Participant stock under The Coca-Cola Company 1989 Restricted Stock Award Plan, as amended, or any successor restricted stock award plan approved by shareowners (the
"Restricted Stock Plan"). Any Award issued in the form of stock shall be subject to the terms and conditions of the Restricted Stock Plan. 





        b.    Deferral of Payment of Award.    An Award paid in cash may be deferred under the Deferred Compensation Plan of
The Coca-Cola Company (or comparable international plan, if any) if the Compensation Committee has, not later than the grant of an Award, received and, in its sole discretion, approved a
request by a Participant to defer receipt of an Award. 


        c.    Withholding for Taxes.    The Company will have the right to deduct from any and all Award payments any taxes
required to be withheld with respect to such payment, including hypothetical taxes under the Company's International Service Program Policy and/or Tax Equalization Policy. For Participants who are
International Service Associates or other international employees, all taxes remain the Participant's responsibility, except as expressly provided in the Company's International Service Policy and/or
Tax Equalization Policy. The Company and any Related Company (i) make no representations or undertaking regarding the treatment of any taxes in connection with any Award; and (ii) do not
commit to structure the terms of the Award to reduce or eliminate the Participant's liability for taxes. 


        d.    Payments to Estates.    Awards and interest thereon, if any, which are due to a Participant pursuant to the
provisions hereof and which remain unpaid at the time of his or her death will be paid in full to the Participant's estate. 


        e.    Offset for Monies Owed.    Any payments made under this Plan will be offset for any monies that the Management
Committee determines are owed to the Company or any Related Company. 


3





 
IX. Amendment and Termination  


        The Compensation Committee may amend, modify, suspend, reinstate or terminate this Plan in whole or in part at any time or from time to time; provided, however,
that no such action will adversely affect any right or obligation with respect to any Award theretofore made. The Compensation Committee and the Management Committee may deviate from the provisions of
this Plan to the extent such committee deems appropriate to conform to local, laws and practices. 


X. Applicable Law  


        The Plan and all rules and determinations made and taken pursuant hereto will be governed by the laws of the State of Georgia, to the extent not preempted by
federal law, and construed accordingly. 


XI. Effect on Benefit Plans  


        Awards may be included in the computation of benefits under the Employee Retirement Plan of The Coca-Cola Company, The Coca-Cola Export
Corporation Overseas Retirement Plan and other retirement plans maintained by the Company under which the Participant may be covered and The Coca-Cola Company Thrift & Investment
Plan subject to all applicable laws and in accordance with the provisions of those plans. Awards will only be included as income or compensation under these plans if the language of the applicable
plan so provides. 


        Awards
will not be included in the computation of benefits under any group life insurance plan, travel accident insurance plan, personal accident insurance plan or under Company policies
such as severance pay and payment for accrued vacation, unless required by applicable laws. 


XII. Change in Control  


        If there is a Change in Control as defined in this Section XII at any time during a Plan Year, (1) the Management Committee promptly shall determine
the Award which would have been payable to each Participant under the Plan for such Plan Year if he had continued for work for the Company for such entire year and all performance goals established
under Section V had been met in full for such Plan Year by multiplying his target percentage by his annual salary as in effect on the date of such Change in Control and (2) each such
Participant's nonforfeitable interest in his Award (as so determined by the Management Committee) thereafter shall be determined by multiplying such Award by a fraction, the numerator of which shall
be the number of full, calendar months he is an employee of the Company during such Plan Year and the denominator is 12 or the number of full calendar months the Plan is in effect during such
Plan Year, whichever is less. The payment of a Participant's nonforfeitable interest in his Award under this Section XII shall be made in cash as soon as practicable after his employment by the
Company terminates or as soon as practicable after the end of such Plan Year, whichever comes first. 


        A
"Change in Control," for purposes of this Section XII, will mean a change in control of a nature that would be required to be reported in response to Item 6(e) of
Schedule 14A of Regulation 14A promulgated under the Securities Exchange Act of 1934 (the "Exchange Act") as in effect on January 1, 2004, provided that such a change in control
will be deemed to have occurred at such time as (i) any "person" (as that term is used in Sections 13(d) and 14(d)(2) of the Exchange Act as in effect on January 1,
2004) is or becomes the beneficial owner (as defined in Rule 13d-3 under the Exchange Act as in effect on January 1, 2004) directly or indirectly, of securities representing
20% or more of the combined voting power for election of directors of the then outstanding securities of the Company or any successor of the Company; (ii) during any period of two
consecutive years or less, individuals who at the beginning of such period constituted the Board cease, for any reason, to constitute at least a majority of the Board, unless the election or
nomination for election of each new director was approved by a vote of at least two-thirds of the directors then still in office
who were directors at the beginning of the period; (iii) the share owners of the Company approve any merger or consolidation as a result of which its stock will be changed, converted or
exchanged (other than a merger with a wholly-owned subsidiary of the Company) or any liquidation of the Company or any sale or other disposition of 50% or more of the assets or earning power of the
Company; or (iv) the share owners of the Company approve any merger or consolidation to which the Company is a party as a result of which the persons who were share owners of the Company
immediately prior to the effective date of the merger or consolidation will have beneficial ownership of less than 50% of the combined voting power for election of directors of the surviving
corporation following the effective date of such merger or consolidation; provided, however, that no Change in Control will be deemed to have occurred if, prior to such time as a Change in Control
would otherwise be deemed to have occurred, the Board determines otherwise. 


4









QuickLinks


THE PERFORMANCE INCENTIVE PLAN OF THE COCA-COLA COMPANY