Document:

kalv-ex1024_464.htm

Exhibit 10.24

DESCRIPTION OF REGISTRANT’S SECURITIES

General

We are authorized to issue 105,000,000 shares of all classes of capital stock, of which 100,000,000 shares are common stock, $0.001 par value per share, and 5,000,000 shares are preferred stock, $0.001 par value per share. Our capital is stated in U.S. dollars. As of July 1, 2019 we had 17,388,298 outstanding shares of common stock and no outstanding shares of preferred stock.

Common Stock

Voting

Holders of our common stock are entitled to one vote for each share held of record on all matters submitted to a vote of the stockholders, including the election of directors, and do not have cumulative voting rights. Accordingly, the holders of a majority of the shares of our common stock entitled to vote in any election of directors can elect all of the directors standing for election.

Dividends

Subject to preferences that may be applicable to any then outstanding preferred stock, the holders of common stock are entitled to receive dividends, if any, as may be declared from time to time by our board of directors out of legally available funds.

Liquidation

In the event of our liquidation, dissolution or winding up, holders of our common stock will be entitled to share ratably in the net assets legally available for distribution to stockholders after the payment of all of our debts and other liabilities, subject to the satisfaction of any liquidation preference granted to the holders of any outstanding shares of preferred stock.

Rights and Preferences

Holders of our common stock have no preemptive, conversion or subscription rights, and there are no redemption or sinking fund provisions applicable to our common stock. The rights, preferences and privileges of the holders of our common stock are subject to, and may be adversely affected by, the rights of the holders of shares of any series of our preferred stock that we may designate and issue in the future.

Fully Paid and Nonassessable

All of our outstanding shares of common stock are fully paid and nonassessable.

 

Transfer Agent and Registrar

American Stock Transfer & Trust Company, LLC is our transfer agent and registrar for the common stock.

The Nasdaq Global Market

Our common stock is listed on The Nasdaq Global Market under the symbol “KALV.”

Preferred Stock

Under the terms of our Amended and Restated Certificate of Incorporation, our board of directors have the authority, without further action by our stockholders, to issue up to 5,000,000 shares of preferred stock in one or more series, to establish from time to time the number of shares to be included in each such series, to fix the rights, preferences and privileges of the shares of each wholly unissued series and any qualifications, limitations or restrictions thereon, and to increase or decrease the number of shares of any such series, but not below the number of shares of such series then outstanding.

Our board of directors may authorize the issuance of preferred stock with voting or conversion rights that could adversely affect the voting power or other rights of the holders of our common stock. The purpose of authorizing our board of directors to issue preferred stock and determine its rights and preferences is to eliminate delays associated with a stockholder vote on specific issuances. The issuance of preferred stock, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things, have the effect of delaying, deferring or preventing a change in control of us and may adversely affect the market price of our common stock and the voting and other rights of the holders of our common stock. It is not possible to state the actual effect of the issuance of any shares of preferred stock on the rights of holders of common stock until the board of directors determines the specific rights attached to that preferred stock.

Anti-Takeover Effects of Provisions of Our Amended and Restated Certificate of Incorporation, Our Bylaws and Delaware Law

Delaware Anti-Takeover Law

We are subject to the provisions of Section 203 of the Delaware General Corporation Law. In general, Section 203 prohibits a publicly- held Delaware corporation from engaging in a “business combination” with an “interested stockholder” for a three-year period following the time that this stockholder becomes an interested stockholder, unless the business combination is approved in a prescribed manner. A “business combination” includes, among other things, a merger, asset or stock sale or other transaction resulting in a financial benefit to the interested stockholder. An “interested stockholder” is a person who, together with affiliates and associates, owns, or did own within three years prior to the determination of interested stockholder status, 15% or more of the corporation’s voting stock.

Under Section 203, a business combination between a corporation and an interested stockholder is prohibited unless it satisfies one of the following conditions: before the stockholder became 

2

interested, the board of directors approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder; upon closing of the transaction which resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding for purposes of determining the voting stock outstanding, shares owned by persons who are directors and also officers, and employee stock plans, in some instances; or at or after the time the stockholder became interested, the business combination was approved by the board of directors of the corporation and authorized at an annual or special meeting of the stockholders by the affirmative vote of at least two-thirds of the outstanding voting stock which is not owned by the interested stockholder.

A Delaware corporation may “opt out” of these provisions with an express provision in its original certificate of incorporation or an express provision in its certificate of incorporation or bylaws resulting from a stockholders’ amendment approved by at least a majority of the outstanding voting shares. We have not opted out of these provisions. As a result, mergers or other takeover or change in control attempts of us may be discouraged or prevented.

Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws

Our certificate of incorporation and bylaws contain certain provisions that are intended to enhance the likelihood of continuity and stability in the composition of the board of directors and which may have the effect of delaying, deferring or preventing a future takeover or change in control of the company unless such takeover or change in control is approved by the board of directors.

These provisions include:

Classified Board. Our certificate of incorporation provides that our board of directors will be divided into three classes of directors, with the classes as nearly equal in number as possible. As a result, approximately one-third of our board of directors will be elected each year. The classification of directors will have the effect of making it more difficult for stockholders to change the composition of our board. Our bylaws will also provide that, subject to any rights of holders of preferred stock to elect additional directors under specified circumstances, the number of directors will be fixed exclusively pursuant to a resolution adopted by our board of directors.

Action by Written Consent; Special Meetings of Stockholders. Our certificate of incorporation provides that stockholder action can be taken only at an annual or special meeting of stockholders and cannot be taken by written consent in lieu of a meeting. Our bylaws provide that, subject to any special rights of the holders of any series of preferred stock, and to the requirements of applicable law, special meetings of the stockholders can be called only by or at the direction of the board of directors pursuant to a resolution adopted by a majority of the total number of directors which our board of directors would have if there were no vacancies. Except as described above, stockholders are not permitted to call a special meeting or to require the board of directors to call a special meeting.

Removal of Directors. Our bylaws provide that our directors may be removed only for cause by the affirmative vote of at least 66 2/3% of the voting power of our voting stock, voting 

3

together as a single class. This requirement of a supermajority vote to remove directors could enable a minority of our stockholders to prevent a change in the composition of our board.

Advance Notice Procedures. Our bylaws provide for an advance notice procedure for stockholder proposals to be brought before an annual meeting of our stockholders, including proposed nominations of persons for election to the board of directors. Stockholders at an annual meeting are only be able to consider proposals or nominations specified in the notice of meeting or brought before the meeting by or at the direction of the board of directors or by a stockholder who was a stockholder of record on the record date for the meeting, who is entitled to vote at the meeting and who has given our Secretary timely written notice, in proper form, of the stockholder’s intention to bring that business before the meeting. Although the bylaws will not give the board of directors the power to approve or disapprove stockholder nominations of candidates or proposals regarding other business to be conducted at a special or annual meeting, the bylaws may have the effect of precluding the conduct of certain business at a meeting if the proper procedures are not followed or may discourage or deter a potential acquirer from conducting a solicitation of proxies to elect its own slate of directors or otherwise attempting to obtain control of the company.

Super Majority Approval Requirements. The Delaware General Corporation Law generally provides that the affirmative vote of a majority of the shares entitled to vote on any matter is required to amend a corporation’s certificate of incorporation or bylaws, unless either a corporation’s certificate of incorporation or bylaws requires a greater percentage. Our certificate of incorporation and bylaws provide that the affirmative vote of holders of at least 66 2/3% of the total votes eligible to be cast in the election of directors will be required to amend, alter, change or repeal certain provisions of the certificate of incorporation and bylaws. This requirement of a supermajority vote to approve amendments to certain provisions of our certificate of incorporation and bylaws could enable a minority of our stockholders to exercise veto power over any such amendments.

Authorized but Unissued Shares. Our authorized but unissued shares of common stock and preferred stock will be available for future issuance without stockholder approval. These additional shares may be utilized for a variety of corporate purposes, including future public offerings to raise additional capital, corporate acquisitions and employee benefit plans. The existence of authorized but unissued shares of common stock and preferred stock could render more difficult or discourage an attempt to obtain control of a majority of our common stock by means of a proxy contest, tender offer, merger or otherwise.

Exclusive Forum. Our certificate of incorporation provides that, to the fullest extent permitted by applicable law, the Court of Chancery of the State of Delaware will be the sole and exclusive forum for (i) any derivative action or proceeding brought on our behalf, (ii) any action asserting a claim of breach of a fiduciary duty owed by any of our directors, officers or other employees to us or our stockholders, (iii) any action asserting a claim against us arising pursuant to any provision of the Delaware General Corporation Law, our certificate of incorporation or our bylaws, or (iv) any other action asserting a claim against us that is governed by the internal affairs doctrine. Any person or entity purchasing or otherwise acquiring any interest in shares of our capital stock shall be deemed to have notice of and to have consented to the provisions of our certificate of incorporation described above. Although we believe these provisions benefit us by 

4

providing increased consistency in the application of Delaware law for the specified types of actions and proceedings, the provisions may have the effect of discouraging lawsuits against our directors and officers. The enforceability of similar choice of forum provisions in other companies’ certificates of incorporation has been challenged in legal proceedings, and it is possible that, in connection with one or more actions or proceedings described above, a court could find the choice of forum provisions contained in our certificate of incorporation to be inapplicable or unenforceable.

5Exhibit

Exhibit 10.1

CONSULTING SERVICES AGREEMENT

CONSULTING SERVICES AGREEMENT, dated as of July 12, 2019, by and between Keurig Dr Pepper Inc.,  a Delaware corporation (the "Company"), and Rodger Collins ("Consultant”).

WHEREAS, Consultant has served the Company as its President, Direct Store Delivery, and will be terminating his employment with the Company effective July 9, 2019; and

WHEREAS, the Company wishes to continue to avail itself of Consultant’s knowledge, expertise and experience by appointment of Consultant as a consultant and  independent contractor to provide services to facilitate the operation of the business of the Company and its affiliates; and

WHEREAS, Consultant is willing to serve as a consultant to the Company upon the terms and conditions set forth below.

NOW, THEREFORE, in consideration of their mutual promises, the Company and Consultant agree as follows:

		
	1.
	Term. The Initial term of this Agreement shall begin on July 10, 2019 and continue until January 9, 2020; provided that the consulting period hereunder shall be automatically extended for successive six month periods unless not later than two (2) months prior to the date that the term hereof would otherwise expire, the Company or Consultant shall have given notice to the other party that it does not want the term hereof to be so extended. The period during which this Agreement is in effect (including any and all extensions pursuant to the immediately preceding sentence) shall be referred to as the “Consulting Period".

		
	2.
	Consulting Services. During the Consulting Period, the Consultant shall personally provide consulting services as and when requested to the person(s) identified, and with regard to the matters specified, in this Section 2. The Consultant shall provide advice, counsel and assistance with regard to (i) the Direct Store Delivery business, (ii) matters pertaining to relationships with business partners of the Company, (iii) long-term planning, and (iv) other projects and matters requested by the Chairman and Chief Executive Officer of the Company ("CEO"). The Consultant shall report to and provide his services hereunder to the CEO.

		
	3.
	Time, Location and Maximum Commitment.  The Company and Consultant shall mutually agree on the time and location at which he shall perform consulting services hereunder, subject to the right of the Company to reasonably request by advance written notice to Consultant that such services be performed at a specific time and at a specific location. The Consultant shall honor any such request unless he has a conflicting business or personal commitment that would preclude him from performing such services at t the time and/or place requested by the Company, and in such circumstances the parties shall make reasonable efforts to arrange a mutually satisfactory alternative.

		
	4.
	Status.  Consultant shall not, by virtue of the consulting services provided hereunder, be considered to be an officer or employee of the Company or any of its affiliates, and shall not have the power or authority to contract in the name of or bind the Company or any of its affiliates. As an independent contractor, Consultant may perform services for others. Consultant shall at all times be treated as an independent contractor and shall be responsible for the payment of all taxes with respect to all amounts paid to be him hereunder. Consultant shall not, by reason of the services performed hereunder, be entitled to participate in any employee benefits plan or fringe benefit or perquisite program made available to 

an employee or officer of the Company. Nothing in this Agreement shall be construed to limit the rights of Consultant to receive any benefits or compensation otherwise payable to Consultant in respect of his prior services as an officer or employee of the Company under the express terms and conditions of any agreement between him and the Company or the applicable terms and conditions of any employee benefit plan, program or arrangement.

		
	5.
	Consulting Fees.  In respect of the services to be performed hereunder, the Company shall pay Consultant a monthly fee of $26,125. Such fee shall be payable to Consultant monthly, in arrears, on the last day of each calendar month during the Consulting Period.

		
	6.
	Termination for Cause.  Notwithstanding the provisions of Section 1, the Company may at any time terminate the Agreement upon written notice to the Consultant for Cause.  “Cause” shall mean:

 
		
	a.
	Consultant's intentional an continued failure to substantially perform his duties under the Agreement (other than as a result of total or partial incapacity due to physical or mental illness or as a result of termination),

		
	b.
	Any intentional act or omission by Consultant constituting fraud or other serious malfeasance which in any such case is materially injurious to the financial condition of the Company or any of Its affiliates or materially injurious to the business reputation of the Company or any of its affiliates,

		
	c.
	Consultant's Indictment for a felony or the substantial equivalent thereof under the laws of the United States, any state or political subdivision thereof or any other jurisdiction in which the Company conducts business, or

		
	d.
	Consultant's material breach of the provision of any of Sections 9, 10, 11, 12 or 13, which breach is not cured by Consultant within 10 days following receipt of a written notice from Company identifying in reasonable detail the actions, failure or omissions alleged to have constituted such breach.

		
	7.
	Equipment, Office Space and Support Services.  During the Consulting Period, the Company shall continue to provide Consultant with such business equipment and services as are necessary or appropriate to assist him in the performance of his services, including an office and other support services.

		
	8.
	Expenses.  The Company shall pay or reimburse Consultant for such reasonable expenses incurred by Consultant in the course of, or on account of, rendering the consulting services to be provided hereunder in accordance with, and subject to the terms and conditions of, the expense reimbursement policy applicable to the expenses incurred by senior officers of the Company, as in effect from time to time. Nothing in this Section 8 shall be construed or interpreted to require the Company to lease, hire or otherwise procure or make available to Consultant the use of a private jet in the event that the Company aircraft is not available to Consultant for required business travel.

		
	9.
	Non-Competition. During the Consulting Period and for the 12-month period which immediately follows Consultant's termination of service hereunder (the “Restricted Period"), Consultant will not, without the written consent of the Company, engage, whether as  principal, agent, consultant, employee, officer, director, investor or otherwise in  any business which is engaged in the manufacturing and marketing of beverage or appliance products that compete with the Company or any of its affiliates 

(including, for the avoidance of doubt and without limitation, the Company's majority stock owner, JAB Holding  S.a.r.l. ("JAB") and its subsidiaries) in any geographical area in which the Company or any of its affiliates markets its products or services (a "Competitive Business”).

		
	10.
	Non-Solicitation.  During the Consulting Period and the Restricted Period, Consultant shall not, directly or Indirectly, (i) induce any person who is an employee of other service provider to the Company or any of its affiliates to terminate his employment or service with such entity,(ii) employ or offer employment to (or assist any other person in employing or offering employment to) any person who is or was an employee or other service provider to the Company or any of its affiliates, unless such person shall have ceased to be employed by or have provided services to any such entity at least 12 months prior thereto (a “Protected Company Service Provider"), or (iii) induce, encourage or facilitate the ability of any Protected Company Service Provider to engage in any service or other activity for the benefit of a Competitive Business.

		
	11.
	Confidential Information.  Consultant will not, directly or indirectly, during or at any time after the Consulting Period, use for himself or others, or disclose to others, any Confidential Information, whether or not conceived, developed or perfected by Consultant and no matter how it became known to Consultant, unless he first secures the written consent of the Company to such disclosure or use, or until the same shall have lawfully become a matter of public knowledge; provided that Consultant may disclose such information if  required by law to do so after notifying the Company that he may be required to disclose as soon as practical after he learns of such obligation and affording the Company a reasonable opportunity to prevent such disclosure through appropriate legal process. “Confidential Information" includes all business information and records which related to the Company and which are not known to the public generally, including but not limited to technical notebook records, patent applications; machine, equipment, process and product designs including any drawings and descriptions thereof; unwritten knowledge and “know-how"; operating instructions; training manuals; production and development processes; production schedules; customer lists; customer buying and other customer related records; product sales records; territory listings; market surveys; marketing plans; long-range plans; salary information; contracts; supplier lists; and correspondence.

		
	12.
	Nondisparagement.  During and after the Consulting Period, Consultant agrees not to issue, circulate, publish or utter any disparaging statements, remarks or rumors about the Company or any of its affiliates, or any of their respective officers, directors, employees, agents or shareholders. Nothing herein shall prevent Consultant from making or publishing any truthful statement (a) when required by law, subpoena or court order, (b) in the course of any legal, arbitral or regulatory proceeding, (c) to any governmental authority, regulatory agency or self regulatory organization, or (d) in connection with any investigation by the Company or any of its affiliates.

		
	13.
	Return of Records.  Upon termination of his service hereunder, or at any other time upon request, Consultant will promptly deliver to the Company all documents and records which are in his possession or under his control and which pertain to the Company, any of its activities or any of his activities in the course of his employment; 

provided Consultant may keep a copy of records relating to his relationship with the Company to the extent permitted by law. Such documents and records include but are not limited to technical notebook records, technical reports, patent applications, drawings, reproductions, and process or design disclosure information, models, schedules, lists of customers and sales, sales records, sales request, lists of suppliers, plans correspondence and al copies thereof. Consultant will not retain or deliver to any third person copies of any such documents or records or any Confidential Information absent a specific legal obligation or right to do so; provided that Consultant may disclose such information if required by law to do so after notifying the Company that he may be required to disclose as soon as practical after he learns of such obligation and affording the Company a reasonable opportunity to prevent such disclosure through appropriate legal process.

		
	14.
	Specific Performance and Other Remedies.  Consultant acknowledges and agrees that the Company has no adequate remedy at law for a breach or threatened breach of any of the provisions of any of Sections 9, 10, 11, 12 and 13, and, in recognition of the fact, Consultant agrees that, in the event of such a breach or threatened breach, in addition to any remedies at law, the Company, without posting any bond and without notice to the Consultant, shall be entitled to seek equitable relief   in the form of specific performance, temporary restraining order, temporary or permanent injunction or any other equitable remedy which may then be available. Nothing in the Agreement shall be construed as prohibiting the Company from pursing any other remedies at law or in equity that it may have or any other rights that it may have under any other agreement.

		
	15.
	Intellectual Property.  Consultant agrees that all intellectual property, including but not limited to, all ideas and concepts contained in computer programs and software, documentation or other literature or illustrations that are conceived, developed, written, or contributed by Consultant during the Consulting Period, either individually or in collaboration with others, that relate to, and are part of, the services provided by Consultant hereunder, shall belong to and be the sole property of the Company. Consultant further agrees that all rights in all works prepared or performed by Consultant pursuant to this Agreement shall belong exclusively to the Company and shall constitute "works made for hire” for purposes of copyright law. Consultant hereby assigns to the Company his entire right, title and interest in any invention or idea, patentable or not, conceived, discovered or made by him during the Consulting Period (whether alone or with others and whether or not on the Company's premises) covered by the foregoing. The provision of this Section shall not be construed to assign to the Company any of Consultant's rights in any work, concept, invention or idea for which no equipment, supplies, facilities, or trade secret information of the Company was used, that was developed entirely on Consultant's own time, and that does not relate at the time of conception or reduction to practice of the invention to the Company's business or to the Company's actual or demonstrably anticipated research or development; or does not result from any work performed by Consultant for the Company.

		
	16.
	Indemnification.  The Company shall, to the fullest extent permitted by applicable law, indemnify and hold harmless Consultant (including the advancement of legal fees) with regard to Consultant’s good faith action or inaction pursuant to this Agreement and cause Consultant to be covered, in respect of his services hereunder, by any insurance policy providing indemnity coverage for its corporate officers and directors, in each case, to the same extent as, and subject to the same condition as apply to, its corporate officers and directors; provided that in no event shall Consultant be indemnified with respect to any willful and intentional misconduct or gross negligence in the performance of his duties hereunder.

		
	17.
	Miscellaneous.  This Agreement is for the personal services of Consultant and may not be subcontracted or assigned by Consultant in any fashion, whether by operation of law, or by conveyance of any type, without the prior written consent of the Company, which consent the Company may withhold in its sole discretion. Without the consent of Consultant, the Company may not assign all or any portion of this Agreement; provided that the Company may at any time and from time to time assign all or a portion of this Agreement to any of its subsidiaries or affiliates. This Agreement may only be amended by a written instrument signed by the Company and Consultant.  Except as otherwise expressly provided hereunder, this Agreement shall constitute the entire agreement between the Company and Consultant with respect to the provision of consulting services by the Consultant to the Company. This Agreement may be executed in counterparts each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

		
	18.
	Governing Law.  This Agreement shall be governed by the law of Delaware, without reference to the principles of conflicts of law.

IN WITNESS WHEREOF, the parties have executed the Agreement as of the day first written above.

KEURIG DR PEPPER INC.

	
					
	Signed:
	/s/ Robert Gamgort
	 
	 
	 

	By:
	Robert Gamgort
	 
	 
	 

	Title:
	Chairman & CEO
	 
	 
	 

	 
	 
	 
	 
	 

	 
	/s/ Rodger L. Collins
	 
	 
	 

	 
	Rodger L. Collins

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00297-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00297-of-00352.parquet"}]]