exv10w1



 




Exhibit 10.1





	 	 	 	 	 
	 	 	Cott Corporation
	 	 	207 Queen’s Quay West
	 	 	Suite 340
	 	 	Toronto, Ontario M5J 1A7
	 
	 	 	 	 
	

	 	Tel
	 	416 203 3898
	

	 	Fax
	 	416 203 8171







December 8, 2004



Bob Flaherty

9365 Colonnade Trail

Alpharetta

Georgia




Dear Bob




I am very pleased to offer you the position of President, USA Operations based in Tampa, Florida.
This position will report to John Sheppard, President and CEO and will be effective from
3rd January 2005. This letter will outline some of the terms and conditions of your
employment with Cott Beverages USA, A Division of Cott Beverages Inc. (the “Company”). Please note
that this is not a contract of employment or a promise of employment for any specific term.



Your base salary will be $325,000 per year paid on a semi-monthly basis. Your performance
evaluations and salary reviews will generally be conducted on an annual basis and any increase
would be a part of the annual review process. You will be entitled to participate in the Cott
Executive bonus plan, starting in 2005, — full details will be forwarded under separate cover.
However in summary this plan would entitle you to a target bonus of 100% of your base salary and
provides for the opportunity to earn bonus beyond the 100% target amount, up to a level of 200% of
your base salary based on Company and personal performance. Bonus awards for performance above 100%
of your base salary will be paid in Cott Corp. shares. These shares will be held in trust in the
Executive Investment Share Purchase Plan and vest over a 3-year period. For further details of the
trust please contact Sher Zaman, Director of Corporate Human Resources at our Toronto Queen’s Quay
office.



For the year 2005 you will be guaranteed a minimum bonus of 100% of your base salary.



You will receive a car allowance equivalent to $13,500 per year.



Subject to approval of the Cott Corporation Human Resources and Compensation Committee, on your
date of hire you will be granted 100,000 stock options with the strike price determined at the
close of the Toronto Stock Exchange on the last trading day before your start date. These options
will vest over a period of (3) three years, at a rate of 30%, 30%, and 40% at the end of years (1)
one, (2) two, and 3 (three) respectively.



You will be expected to relocate to Tampa, Florida, however in view of your current family
situation we will extend the offer of relocation until July 30th, 2008. A copy of the
relocation policy is attached. From January 3rd 2005 to July 3rd 2005 Cott
will pay for accommodation and weekly travel from your home in Georgia to Tampa, FLA.



If your employment is terminated by the company, for any reason other than “Just Cause” (Just Cause
defined as malfeasance, acts of misconduct, dishonesty in the discharge of your duties, theft or
misappropriation of the company’s property, breach of fiduciary duties, incompetence or gross
negligence in the performance of your duties, conviction of a felony, or failure to follow the
lawful directions of the CEO, Chairman, and/or board of directors) or if there is a reduction in
your position, responsibilities, or compensation or, if you are required to move your residence to
a location other than the Tampa, Florida, area unless agreed to by you then the Corporation shall
pay to you a lump sum payment equal to one (1) years base salary and cash bonus (capped at 100%
payout).



Effective on your date of hire you will be eligible for Cott’s Benefit Program. Our Benefit
Program includes health, disability and life insurance benefits. You should note that our health
insurance plan does have a pre-existing illness



 









 






- 2 -


provision, which limits the amount payable for pre-existing illnesses for 12 consecutive months
beginning on your enrollment date. However, if you have been covered for health insurance by your
prior employer, you may have creditable prior coverage. In order to help determine that please
provide a HIPAA certificate from your prior employer. Employee contributions are required for our
Program. Once you are eligible to participate in the Cott Cafeteria Plan (discussed below), your
contributions will be deducted from your paycheck on a pre-tax basis.



On the first day of the month following your completion of 90 days of employment, you will be
eligible to participate in Cott’s Cafeteria Plan. Benefits provided under our Cafeteria Plan are
pre-tax deductions for medical premiums, a Health Care Reimbursement Account and a Dependent Care
Reimbursement Account . If you participate in the Cafeteria Plan, payroll deductions for the
benefits you select under the plan are made on a pre-tax basis. Please review the Summary Plan
Description for additional information.



In addition, on the first day of a quarter following at least six months of employment, you will be
eligible for Cott’s 401 (K) Savings and Retirement Plan. You will also be eligible to participate
in the Employee Share Purchase Plan after completing ninety (90) days of employment. Your regular
annual entitlement of four (4) weeks vacation will commence in 2005. You are encouraged to take
your vacation time in the calendar year it is earned. All earned vacation must be taken by March
31st of the year following the one, which it is earned; otherwise it may be forfeited.
If you should leave the Company, the value of any unearned vacation taken by you will be considered
a debt to the Company.



Please see the enclosed checklist of forms and dates the forms are due to be turned in to HR
Department.



To comply with the Immigration Reform and Control Act of 1986, the company must verify your
identity and authorization to work in the United States. Therefore, please bring with you on your
first day, either one original document from the list A or one original document from the
list B and one original document from the list C. Acceptable documents are listed
on the backside of the enclosed INS Form I-9. If you have any difficulty in this regard, please
call me immediately.



Upon acceptance of this offer, you acknowledge and agree that Cott has the right to disclose
confidential information regarding you to any third party as required by law.



Bob, I am excited about having you join us. You have a lot to contribute to our company. I know
that you can look forward to joining a dynamic and challenging organization with rewarding career
opportunities. Please indicate your acceptance of this offer by returning one signed original of
both the offer letter and confidentiality agreement to me.



Yours truly,



/s/ John K. Sheppard




John Sheppard


President and CEO




	 	 	 
	Cc:

	 	Human Resources







I accept this offer of employment and the terms identified herein.



	 	 	 
	/s/ Robert J. Flaherty

	 	December 8, 2004
	
 

	 	
 
	Bob Flaherty

	 	Date