Document:

Document

Exhibit 10.3

AIRCRAFT TIME SHARING AGREEMENT
between
Marc R. Benioff
an Individual
and
Salesforce.com, inc.
a Delaware corporation

dated

March 17, 2020
									
	Instructions to Comply with Truth-in-Leasing Requirements
	1.	Mail a copy of the lease to the following address via certified mail, return receipt requested, immediately upon execution of the lease (14 C.F.R. 91.23 requires that the copy be sent within twenty-four hours after it is signed):	
	Federal Aviation Administration
Aircraft Registration Branch
ATTN:  Technical Section
P.O. Box 25724
Oklahoma City, Oklahoma 73125

	2.	Telephone the nearest Flight Standards District Office at least forty-eight hours prior to the first flight under this lease. (Please see attached script)	
	3.	Carry a copy of the lease in the aircraft at all times	
	4.	For questions regarding this lease, please contact Nathan R. Pietila, Esq. c/o Aero Law Group PC at (425) 456-1800.	

AIRCRAFT TIME SHARING AGREEMENT
This Aircraft Time Sharing Agreement (the “Agreement”) is dated as of March 17, 2020, by and between Mark R. Benioff, an individual (“Operator”), and Salesforce.com, Inc., a Delaware corporation (“Lessee”).
Recitals
Whereas, Operator leases that certain [REDACTED] aircraft, U.S. registration [REDACTED] and bearing manufacturer’s serial number [REDACTED], including its attached engines and all other appliances, avionics, parts, additions, accessories, instruments, components and other items of equipment now installed thereon, and all flight manuals, log books and records required by the Federal Aviation Administration, relating to said aircraft, engines and components (collectively, the “Aircraft”);
Whereas, Lessee is the employer of Operator;
Whereas, Lessee desires to use the Aircraft from time to time; and
Whereas, Operator is willing to make the Aircraft available to Lessee but only in accordance with and subject to the terms and conditions of (a) this Agreement and (b) the Federal Aviation Regulations (“FAR”) including, without limitation, Subpart F, entitled “Large and Turbine-Powered Multi-Engine Airplanes” and specifically Sections 91.501(b)(6), (c)(1) and (d) relating to “time sharing agreements” (the “Applicable FAR”).
Now, Therefore, in consideration of the mutual covenants and agreements set forth herein, and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties hereto agree as follows:
AGREEMENT
1.LEASE OF AIRCRAFT.  Operator hereby agrees to lease the Aircraft to Lessee and Lessee hereby agrees to lease the Aircraft from Operator from time to time, subject to the Applicable FAR and the terms and conditions set forth herein.  Each flight made under this Agreement shall be referred to herein as a “Time Sharing Flight”.
2.TERM OF AGREEMENT
1.The initial term of this Agreement shall commence on the date of this Agreement and shall continue in full force and effect for one (1) year unless earlier terminated pursuant to Section 14 hereof.
2.Unless earlier terminated pursuant to Section 14 hereof, the initial one (1) year term of this Agreement shall be automatically renewed at the end of such initial term for successive one (1) year terms thereafter.
3.LEASE PAYMENTS
Aircraft Time Sharing Agreement    1    [Redacted]

3.1.Lessee shall pay to Operator an amount equal to but not to exceed all Time Sharing Costs (as set forth on Schedule A hereto) for each Time Sharing Flight.  Notwithstanding any such requirement, Lessee shall not be required to pay any amounts that are not allowed to be paid by Lessee to Operator under the Applicable FAR.  Should for any reason whatsoever Operator receive from Lessee any amounts under this Agreement not otherwise allowed under the Applicable FAR, Operator shall immediately refund to Lessee such disallowed amounts.
3.2.Lessee hereby agrees to pay such Time Sharing Costs to Operator within sixty (60) days after receipt of Operator’s written invoice therefor, which shall include supporting invoices and receipts relating to the Time Sharing Costs as reflected in Operator’s invoices.
4.TAXES
4.1.Lessee shall be liable for and shall pay upon receipt of an invoice therefor, any sales, use or excise taxes imposed or otherwise assessed for each Time Sharing Flight.  Notwithstanding the above, nothing contained herein shall be construed to require Lessee to pay or reimburse Operator for any franchise, sales, use, personal property, business property or any other taxes, governmental charges or assessments imposed on the Aircraft or the Operator based on its ownership or possession of the Aircraft or any tax computed on the basis of Operator’s income, generally, and/or ownership of its assets, including the Aircraft.
4.2.If any taxing authority requires that a tax required to be paid by Lessee hereunder be collected and/or paid to the taxing authority directly by Operator, Lessee shall, within thirty (30) days of its receipt of a written invoice from Operator, pay to Operator the amount of such tax, unless such tax is being contested pursuant to Section 4.3 hereof.  In all events, Operator shall collect the federal excise tax imposed under Internal Revenue Code Section 4261 (the “Commercial Transportation Tax”) on all amounts paid hereunder (except for separately stated and billed ground transportation or other items not taxable).
4.3.Lessee shall have the right to contest the validity or amount of any tax required to be paid by Lessee hereunder by legal proceedings promptly instituted and diligently conducted.
5.SCHEDULING AND CANCELLATIONS
5.1.Lessee may from time to time request the use of the Aircraft for a Time Sharing Flight by contacting Operator’s “Scheduler” (as identified from time to time to Lessee by Operator, the “Scheduler”).  The Scheduler shall advise Lessee as to whether or not the Aircraft is available for Lessee’s use and schedule the Aircraft accordingly.  Such determination of availability and scheduling shall be made by Scheduler, on behalf of the Operator, in the Scheduler’s sole and absolute discretion.
5.2.The Scheduler, on behalf of the Operator, shall arrange for flight crew, landing permits, clearances, and ground handling for all destinations and coordinate the aircraft’s movements to support the Lessee’s travel schedule.  If seasonably requested by Lessee, the Scheduler, on behalf of the Lessee, can arrange ground transportation, catering and hotel 
Aircraft Time Sharing Agreement    2    [Redacted]

accommodations.  Otherwise, details of each Time Sharing Flight shall be arranged to the mutual agreement of Lessee and Operator.
5.3.Lessee shall notify the Scheduler of any desired cancellation of a Time Sharing Flight.  Cancellation charges to be paid by Lessee shall be limited to Time Sharing Costs incurred by Operator as of the time of such notification, including the return of the Aircraft to its home base (as set forth in Section 26, below).  Operator shall cause Scheduler to notify Lessee of any desired or required cancellation by Operator.  Operator shall not be liable to Lessee for any damages or losses of Lessee, or any other party, incurred in connection with the cancellation by Operator of any Time Sharing Flight.
6.MAINTENANCE RESPONSIBILITY.  Operator, at its own cost and expense, shall be responsible for all service, repair, inspection, maintenance and overhaul to be done to the Aircraft during the term of this Agreement.  Such service, repair and maintenance shall take precedence over scheduling of the Aircraft for Time Sharing Flights, unless such can be safely deferred in accordance with applicable laws and regulations, as determined in Operator’s sole discretion, subject to the final authority of the Pilot-In-Command to not initiate or to terminate a Time Sharing Flight.  Operator shall maintain all records, logs and other materials required by the United States Department of Transportation or the FAA with respect to the maintenance of the Aircraft.
7.OPERATIONAL CONTROL.  Operator shall have complete and absolute operational control of the aircraft. “Operational Control” as defined in 14 C.F.R. Paragraph 1.1 and for the purpose of this Agreement, with respect to a flight, means the exercise of authority over initiating, conducting or terminating a flight, which shall include, without limitation, providing the flight crew, selecting the Pilot-In-Command and all other physical and technical operations of the Aircraft.  The Pilot-In-Command shall determine the routing, approve the payload, and otherwise decide all matters relating to the safety of each flight.
8.LEGAL TITLE TO THE AIRCRAFT.  Legal title to the Aircraft shall remain with the legal owner at all times.
9.REPRESENTATIONS AND WARRANTIES OF OPERATOR.  Operator hereby represents and warrants to Lessee as follows:
9.1.Operator has the absolute and unrestricted right, power and authority to enter into and perform its obligations under this Agreement, and the execution and delivery of the Agreement by Operator have been duly authorized by all necessary action on the part of Operator.  The Agreement constitutes a legal, valid and binding obligation of Operator, enforceable in accordance with its terms.
9.2.Operator is an individual authorized to own or lease its properties and to carry on its business as presently conducted.
9.3.Operator is a “citizen of the United States” as defined in Section 40102(a)(15) of Title 49, United States Code.
Aircraft Time Sharing Agreement    3    [Redacted]

9.4.Operator is eligible for the benefits of the Applicable FAR.
9.5.NEITHER OPERATOR NOR OWNER MAKE ANY WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, AS TO THE DESIGN, OPERATION, OR CONDITION OF, OR AS TO THE QUALITY OF THE AIRCRAFT.  IN ADDITION, OPERATOR MAKES NO WARRANTY OF MERCHANTABILITY OF FITNESS OF SUCH AIRCRAFT FOR ANY PARTICULAR PURPOSE OR ANY OTHER WARRANTY OR REPRESENTATION WHATSOEVER.
10.REPRESENTATIONS AND WARRANTIES OF LESSEE.  Lessee hereby represents and warrants to Operator as follows:
10.1.Lessee has the absolute and unrestricted right, power and authority to enter into and perform its obligations under this Agreement, and the execution and delivery of the Agreement by Lessee have been duly authorized by all necessary action on the part of Lessee.  The Agreement constitutes a legal, valid and binding obligation of Lessee, enforceable in accordance with its terms.
10.2.Lessee is a corporation duly organized, existing and in good standing under the laws of the State of Delaware and has all necessary power and authority under applicable corporate law and its organizational documents individual.
11.AIRCRAFT USE BY LESSEE.  It is understood and agreed by Lessee that Lessee’s use of the Aircraft for each Time Sharing Flight shall be for Lessee’s own account and that Lessee is prohibited from providing transportation of passengers or cargo for compensation or hire under the FAR.
12.INSURANCE.  Operator will maintain, or cause to be maintained and in effect, at all times during the term of this Agreement, with insurers of recognized responsibility, aircraft hull and liability insurance with respect to the Aircraft in such amount and type usually carried by companies similarly situated with Operator, acting as an owner-operator, and owning and operating similar aircraft, and covering such other risks as are customarily insured against by such companies.  Operator shall cause Lessee to be named as an additional insured on the aircraft liability insurance policy, and shall provide a certificate of insurance to Lessee confirming the same prior to commencement of Lessee’s first flight under this Agreement.
13.LIMITATION OF LIABILITY.  Each party to this Agreement agrees to indemnify and hold harmless the other party and its respective officers, directors, partners, employees, shareholders, and affiliates from any claim, damage, loss, or reasonable expense, including reasonable attorney’s fees resulting from the bodily injury or property damage caused by an occurrence and arising out of the ownership, maintenance, or use of the Aircraft which results from the gross negligence or willful misconduct of such party, provided that neither party shall be liable for any such loss to the extent:
13.1.Such loss is covered by the insurance policies described in Section 12, above;
Aircraft Time Sharing Agreement    4    [Redacted]

13.2.Such loss is covered by such policies but the amount of such loss exceeds the policy limits; or
13.3.Such loss consists of expenses incurred in connection with any loss covered, in whole or in part, by such policies but such expenses are not payable under such policies.
EACH PARTY AGREES THAT (A) THE PROCEEDS OF INSURANCE TO WHICH IT IS ENTITLED, (B) ITS RIGHTS TO INDEMNIFICATION FROM THE OTHER PARTY UNDER THIS SECTION 13, AND (C) ITS RIGHT TO DIRECT DAMAGES ARISING IN CONTRACT FROM A MATERIAL BREACH OF THE OTHER PARTY’S OBLIGATIONS UNDER THIS AGREEMENT ARE THE SOLE REMEDIES FOR ANY DAMAGE, LOSS, OR EXPENSE ARISING OUT OF THIS AGREEMENT OR THE SERVICES PROVIDED HEREUNDER OR CONTEMPLATED HEREBY.  EXCEPT AS SET FORTH IN THIS SECTION 13 EACH PARTY WAIVES ANY RIGHT TO RECOVER ANY DAMAGE, LOSS, OR EXPENSE ARISING OUT OF THIS AGREEMENT OR THE SERVICES PROVIDED HEREUNDER OR CONTEMPLATED HEREBY.  IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR OR HAVE ANY DUTY FOR INDEMNIFICATION OR CONTRIBUTION TO THE OTHER PARTY FOR ANY CLAIMED INDIRECT, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES, OR FOR ANY DAMAGES CONSISTING OF DAMAGES FOR LOSS OF USE OR DEPRECIATION OF VALUE OF THE AIRCRAFT, LOSS OF PROFIT OR INSURANCE DEDUCTIBLE.
The provisions of this Section 13 shall survive the termination or expiration of this Agreement.
14.TERMINATION.  Either party may terminate this Agreement at any time upon ten (10) business days prior written notice to the other party.
15.ASSIGNMENT.  Neither party shall assign this Agreement or any rights hereunder at any time without the other party’s prior written consent.
16.AMENDMENTS AND WAIVERS.  No term or provision of this Agreement may be amended, modified, waived, discharged or terminated orally, but only by a written instrument signed by the party against which enforcement of such amendment, modification, waiver, discharge or termination is sought.  No delay or failure by either party to exercise any right under this Agreement shall constitute a waiver of that or any other right hereunder and any waiver of the terms hereof shall be effective only in the specific instance and for the specific purpose given.
17.NOTICES.  Unless otherwise expressly provided by law or herein, all notices, instructions, demands and other communications hereunder shall be in writing and shall be delivered personally or sent by registered or certified mail, postage prepaid and return receipt requested, or sent by facsimile or other electronic transmission (the receipt of which shall be confirmed by the parties, either by a confirming copy sent by air mail, postage prepaid, or some other manner which confirms receipt of the facsimile or electronic transmission) and the date of personal delivery of facsimile or electronic transmission or seven (7) business days after the 
Aircraft Time Sharing Agreement    5    [Redacted]

date of mailing (other than in the case of the mailing of a confirming copy of a facsimile transmission), as the case may be, shall be the date of such notice, in each case to the address of such party set forth on the signature page hereto (or at such other address and/or facsimile number as a party shall have furnished to the other in writing).
18.ENTIRE AGREEMENT.  This Agreement is the entire Agreement between the parties.  No agreements, representations, or warranties other than those specifically set forth herein shall be binding on either party unless in writing signed by both parties.
19.GOVERNING LAW.  This Agreement shall be construed in accordance with, and governed by, the laws of the State of California without regard to conflicts of law principles.
20.HEIRS AND SUCCESSORS.  This Agreement and each of its provisions shall be binding on and shall inure to the benefit of the respective heirs, devisees, legatees, executors, administrators, trustees, successors and assigns of the parties to this Agreement.  Nothing contained in this Section 20 shall be construed as consent by such party to any assignment of this Agreement or any interest therein by the other party.
21.FURTHER ASSURANCES.  Each party shall execute and deliver to the other such further documents and take such further action as may be necessary to effectuate the intent and purpose of this Agreement.
22.CAPTIONS.  The captions used in this Agreement are solely for convenience of reference and do not form part of the Agreement.
23.No Third-Party Beneficiary.  No person, other than the parties expressly named herein, is intended to be a beneficiary of any provisions of this Agreement.
24.Severability.  If any term or provision of this Agreement or the application thereof to any person or circumstances shall, to any extent, be prohibited or unenforceable, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held prohibited or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law.
25.Counterparts.  This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original, and such counterparts together shall constitute and be one and the same instrument.
26.Home Base of Aircraft.  The Aircraft is based at [REDACTED].
27.Legal Advice.  Lessee acknowledges that Operator is represented by Aero Law Group PC (“ALG”) and that ALG does not represent Lessee in the transaction contemplated by this Agreement.  Lessee is advised to seek independent legal representation to obtain advice and representation of his legal interests before entering this Agreement.

Aircraft Time Sharing Agreement    6    [Redacted]

[Remainder of Page Intentionally Left Blank]

Aircraft Time Sharing Agreement    7    [Redacted]

28.TRUTH IN LEASING
28.1.OPERATOR HAS REVIEWED THE AIRCRAFT’S MAINTENANCE RECORDS AND OPERATING LOGS AND HAS FOUND THAT, DURING THE TWELVE MONTHS PRECEDING THE DATE OF THIS AGREEMENT, THE AIRCRAFT HAS BEEN MAINTAINED AND INSPECTED UNDER PART 91 OF THE FEDERAL AVIATION REGULATIONS.  OPERATOR CERTIFIES THAT THE AIRCRAFT WILL BE MAINTAINED AND INSPECTED UNDER FAR PART 91 FOR OPERATIONS TO BE CONDUCTED UNDER THIS AGREEMENT.
28.2.OPERATOR AND LESSEE CERTIFY THAT OPERATOR AND NOT LESSEE IS RESPONSIBLE FOR OPERATIONAL CONTROL OF THE AIRCRAFT UNDER THIS AGREEMENT DURING THE AGREEMENT TERM.  OPERATOR FURTHER CERTIFIES THAT OPERATOR UNDERSTANDS ITS RESPONSIBILITY FOR COMPLIANCE WITH APPLICABLE FEDERAL AVIATION REGULATIONS.
28.3.OPERATOR AND LESSEE UNDERSTAND THAT AN EXPLANATION OF FACTORS BEARING ON OPERATIONAL CONTROL AND THE PERTINENT FEDERAL AVIATION REGULATIONS CAN BE OBTAINED FROM THE NEAREST FAA FLIGHT STANDARDS DISTRICT OFFICE.
28.4.OPERATOR AND LESSEE CERTIFY AND AGREE THAT A TRUE COPY OF THIS AGREEMENT SHALL BE CARRIED ON THE AIRCRAFT AT ALL TIMES DURING ANY TIME SHARING FLIGHT, AND SHALL BE MADE AVAILABLE FOR INSPECTION UPON REQUEST BY AN APPROPRIATELY CONSTITUTED IDENTIFIED REPRESENTATIVE OF THE FEDERAL AVIATION ADMINISTRATION.
In Witness Whereof, the parties have executed this Agreement as of the day and year first above written.
Aircraft Time Sharing Agreement    Signature Page    [Redacted]

						
	OPERATOR:	LESSEE:
	Marc R. Benioff	Salesforce.com, inc.
	an individual	a Delaware corporation
		
		
	/s/ Marc Benioff	By:  /s/ Mark J Hawkins            

		
	Operator Address:
[REDACTED]
	Name:  Mark J. Hawkins            
Title:  President & Chief Financial Officer    

		
	Lessee Address:
Salesforce Legal
50 Fremont St, Suite 300
San Francisco, CA 94105
corporatesecretary@salesforce.com
	By:  /s/ Craig Cuffie                
Name:  Craig Cuffie                
Title:  SVP & Chief Procurement Officer    

Aircraft Time Sharing Agreement    Signature Page    [Redacted]

Schedule A
TIME SHARING COSTS
(Actual Costs)
1.    Fuel, oil, lubricants and other additives
2.    Travel expenses of the crew, including food, lodging and ground transportation
3.    Hangar and tie-down costs away from the aircraft’s base of operation
4.    Insurance obtained for the specific flight.
5.    Landing fees, airport taxes and similar assessments.
6.    Customs, foreign permit, and similar fees directly related to the fight.
7.    In flight food and beverages.
8.    Passenger ground transportation.
9.    Flight planning and weather contract services.
10.    An additional “time sharing charge” not to exceed the amount set forth in 1, above.

Aircraft Time Sharing Agreement    A-1    [Redacted]

Time Sharing Agreement
FSDO Script
Pursuant to 14 C.F.R. 91.23 (FAR 91.23) -- Truth-In-Leasing – Section 91.23(c)(3) -- No person may operate a large civil aircraft of U.S. registry that is subject to any lease that is subject to 91.23 (including a Time Sharing Agreement) unless the lessee or registered owner notifies by telephone or in person the FAA flight Standards district office nearest the airport where the flight will originate at least forty-eight (48) hours before takeoff, in the case of the first flight of that aircraft under the lease, of the following information:
Marc R. Benioff (Operator) and Salesforce.com, Inc. (Lessee), have entered into a Time Sharing Agreement dated as of March 17, 2020 (Time Sharing Agreement) relating to following Aircraft:
									
	Manufacturer:	[REDACTED]	
	Make and Model:	[REDACTED]	
	Serial No.:	[REDACTED]	
	FAA Registration No.:	[REDACTED]	

The first flight of the Aircraft pursuant to the Time Sharing Agreement is scheduled to occur from _______________________, at approximately_______.
Pursuant to Section 91.23(c) 1 and 2, a copy of the Time Sharing Agreement has been mailed to the following address within twenty-four hours after it was signed:
Federal Aviation Administration
Aircraft Registration Branch
ATTN:  Technical Section
P.O. Box 25724
Oklahoma City, Oklahoma 73125
A copy of the Time Sharing Agreement will be carried aboard the Aircraft at all times while such is in effect.
Please contact me should you have any questions with respect to the above.
Aircraft Time Sharing Agreement    A-2    [Redacted]Document

                                              EXHIBIT 10.11 

KEURIG DR PEPPER
SHORT-TERM INCENTIVE PLAN AND SALES INCENTIVE PLAN 

    
1PURPOSE 

The Keurig Dr Pepper Short-Term Incentive Plan (STIP) and Keurig Dr Pepper Sales Incentive Plan (SIP) (collectively referred to herein as the “Plan”) are discretionary pay for performance annual incentive plans that are intended to incentivize strong business performance and link the attainment of overall business results with financial rewards to certain participating employees.  Unless and until modified by the Remuneration Committee, this plan document reflects the terms of the Plan and replace any previous documents and terms.

The Remuneration Committee of the Company, in its sole and absolute discretion, reserves the right to amend, modify or terminate the STIP and/or the SIP at any time, for any reason, and in any manner, even if such modification, amendment or termination would reduce the bonus amounts payable hereunder to zero.

2COVERAGE AND ELIGIBILITY

2.1Coverage.  This Plan applies to all eligible participating employees of the Company. Rules pertaining to Executive Leadership Team (ELT) member participation are governed by the Remuneration Committee.

2.2Eligible Participants.  

2.2.1Full-Time Employees:  All active full-time employees (as defined in their home country) of the Company and its subsidiaries, unless eligible for another annual incentive plan of the Company.

2.2.2Reduced Hours Employees:  Certain full-time employees who have entered into short-term reduced hour work arrangements with management, as identified by the Company in its sole discretion, may be eligible to participate in the Plan.  To the extent a reduced hour employee is eligible to participate in the Plan, his or her award will be pro-rated based on the ratio of agreed upon reduced hours to a 40 hour work week (for instance, if the employee is working 50% of full-time, his or her award will be 50% of what he or she would have received as a full-time employee). 

2.2.3Temporary Employees:  Individuals classified by the Company as temporary, contractor, intern or consultant labor are not eligible to participate.

2.2.4Unionized Employees:  Employees who are members of a collective bargaining unit are not eligible to participate in the Plan.

2.2.5New Hires:  Employees who are hired during the Plan Year prior to October 31 are eligible to participate in the Plan on a Pro-rated basis. Employees hired after October 31 of a Plan Year are not eligible to participate until the next Plan Year. 
 
2.2.6Re-hires:   Employees who are re-hired during the Plan Year prior to October 31 will be treated as new hires for the purposes of the Plan.  They will be eligible to participate in the Plan on a Pro-rated basis calculated from date of re-hire to end of year; no credit will be given for any 
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employment with the Company during the Plan Year that occurred prior to the date of re-hire unless the employee’s employment was terminated by the Company as a result of an Involuntary Termination (as defined in Section 6.1.3 below).  Employees who are rehired on or after October 31 of a Plan Year will not be eligible to participate in the Plan Year they are rehired. They will be eligible to participate in the following Plan Year.

2.3Required Continued Employment.  All eligible participants must be employed on the date the Award Payout is made to be eligible to receive an Award Payout, unless terminated under one of the Qualifying Termination Events (as set forth in Section 6.1 below). 

3GOVERNANCE 

Plan components for all eligible employees are generally consistent with the Plan components established by the Remuneration Committee for the ELT members, provided that the Remuneration Committee reserves the right to provide different components to different employees, in its sole discretion. No employee may establish his or her own Plan metrics or make any determination regarding his or her final Award.  

3.1Final Awards will be based on actual performance measured against each metric, and the payout level for such performance and will be subject to approval by the Remuneration Committee, in its sole discretion.  

3.2The Plan will be interpreted by the Plan Administrator in its sole and absolute discretion.  Any interpretation, determination or other action made or taken by the Plan Administrator shall be final, binding, and conclusive on all interested parties.    The Plan Administrator shall administer the Plan in accordance with its terms. Any exceptions to the Plan rules must be reviewed and approved in writing by the CEO and the Chief Human Resources Officer.

3.3All financial metrics will be tracked, monitored, and reported by Finance. 

3.4Any adjustments to final Awards will require the approval of the Remuneration Committee.

4PLAN DESIGN

4.1Plan Year:  January 1 through December 31.

4.2 Target Percentage:  Each eligible participant shall be assigned a percentage (a “Target Percentage”) based upon his or her job, which shall be communicated to the eligible participant in writing. The Target Percentage will be reviewed on a regular basis by the CEO and/or his or her delegate through the Plan Year, and may be increased or decreased at any time during the Plan Year in the sole and absolute discretion of the CEO (and/or his or her delegate) without the eligible participant’s consent.  

4.3Target Award:  Each eligible participant’s Target Award shall be the amount determined by multiplying his or her Target Percentage as in effect at the end of the Plan Year by the eligible participant’s Base Salary as in effect at the end of the Plan Year (“Target Award”).

4.4Metrics: The Plan takes into account actual performance against a set of pre-determined performance metrics.  The performance metrics have been approved by the Remuneration Committee.  The performance metrics include Growth, Profit, and Cash components. 

4.5Payout Multipliers:  The Plan has six (6) payout levels ranging between Unacceptable to Excellent: Unacceptable, Marginal, Acceptable, Good (Target), Very Good and Excellent (Maximum).  The payout 
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level is determined by multiplying the metric payouts, based on the final performance achieved for each metric.

4.5.1Unacceptable. There will be 0% payout if the Profit metric performance is at or below Unacceptable. Performance achievement at or below the Unacceptable level for the Growth or Cash metrics will receive the payout multiplier at the Unacceptable level. 
4.5.2Good (Target). There will be 100% payout of the Target Award if each metric is achieved.
4.5.3Excellent (Maximum).  The maximum payout level is 250% of the Target Award if each metric    achieves the highest performance. 
 
    For performance that falls between any two payout levels, the incentive award will be determined through interpolating the value on a straight-line basis between the two payout points.  

    
4.6Objective Setting:  To ensure alignment of organizational objectives, performance metrics have been established and will cascade throughout the organization as determined by the ELT and approved by the Remuneration Committee, in its sole discretion.  

4.7Payout: Metrics are mutually exclusive of each other; thus, the payout percentages for each metric may differ.  

4.7.1Based on data and history, different targets can be set for the various sub-divisions or subsets thereof to ensure appropriate stretch/opportunity.
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4.7.2In the absence of sub-division targets, all eligible participants will be measured against a corporate level target.

5AWARDS  

5.1Award Basis:  The Plan Administrator shall use the Company’s audited, published year-end results as the basis for calculating Awards under the Plan.  Awards will be paid only after the results are approved by the Remuneration Committee, in its sole discretion.   

5.2Award Payment:  Potential Awards are calculated in the first quarter (Q1) following the end of the Plan Year to which the Potential Award relates.  Awards will be paid in cash in a single lump sum, subject to all applicable withholdings and taxes in effect at the time of the payment.  Award amounts, if any, will be paid to eligible participants on or before March 15 of the year following the Plan Year.

5.3Calculation:  Final calculations will be determined by Plan Administrator and approved by the CEO.  The base formula below can be used as a guideline.

Base Salary (x) Target Percentage (x) Proration (if applicable) (x) Payout Multiplier

5.4Individual Performance:  The Plan does not include an individual performance metric.  All metrics are   based on business objectives.

5.5Level Promotions or Demotions:  Each participant who is promoted or demoted to a higher or lower level of employment classification, respectively, will have his or her Award calculated on a Pro-rated basis, based upon the employee’s actual time in the employee’s position, each position’s Plan Target Percentage (number of days/365 – or 366 in the event of a Leap Year), and final annual Base Salary while in each position.

5.6Leave of Absence:  Each participant who is on an approved leave of absence, depending on the type of leave, will have his or her Award Pro-rated for the current Plan Year based upon the time (number of days/365 – or 366 in the event of a Leap Year) he or she was actively at work and final annual Base Salary.

6TERMINATION OF EMPLOYMENT

6.1Qualifying Termination Events:  A participant whose employment with the Company is terminated due to the following events (each a “Qualifying Termination”) will be eligible to receive a Pro-rated portion of his or her Award for the Plan Year.

6.1.1Death:  The estate of a participant who dies during the Plan Year will be eligible to receive the Target Award for that Plan Year Pro-rated to time of death (regardless of actual achievement of the performance goals for the Plan Year.) The amount of the Award will be calculated based on the participant’s Base Salary and Target Percentage payout as in effect on the date of death and paid within 60 days of the participant’s death.

6.1.2Retirement or Disability:  A participant whose employment with the Company ends due to Retirement or whose employment is terminated due to a Disability during the Plan Year will be eligible to receive an Award Payout, calculated on a Pro-rated basis, paid at the same time 
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Awards are paid to other active participants.  The amount of the Award Payout will be calculated on a Pro-rated basis to the date of Retirement or the date the Disability is determined using the participant’s Base Salary and Target Percentage as in effect on such date as well as the Payout Multiplier for such Plan Year.    

6.1.3Involuntary Terminations: A participant who experiences an Involuntary Termination (as defined below) will be eligible to receive an Award Payout paid at the time Awards are paid to other active participants.  The amount of the Award Payout will be calculated on a Pro-rated basis using the participant’s Base Salary and Target Percentage as in effect on the dated used for the Pro-ration as well as the Payout Multiplier for such Plan Year.  The pro-ration of the Award Payout, as well as the date for determining the Base Salary and Target Percentage, shall be based on the date the participant ceases to perform services for the Company without regard to whether the participant thereafter continues to receive any compensatory payments arising from the termination or is paid salary thereby in lieu of notice of termination. A participant’s termination shall be treated as an “Involuntary Termination” if the Company (or one of its subsidiaries or affiliates) terminates the participant’s employment in connection with a company reorganization, the closing of a facility, or a reduction in force or otherwise terminates the participant’s employment without Cause (as defined in Section 6.2.2 below) and such termination does not occur in connection with the participant's death, Disability or Retirement.

6.2Disqualifying Termination Events:  For the avoidance of doubt, the following shall not constitute Qualifying Terminations and, in such circumstances, a participant forfeits any claim to, and is ineligible to receive, any Award Payout.

6.2.1Voluntary Resignations:  A participant who voluntarily resigns or otherwise terminates his or her employment, other than due to his or her Retirement, death or Disability, at any time during the Plan Year.

6.2.1.1Examples of voluntary resignations include, but are not limited to, resigning from the Company to obtain another job, walking off the job, leaving the Company to continue one’s education, not returning from a leave of absence or any other type of voluntary resignation for any reason.

6.2.2Terminations for Cause: A participant whose employment with the Company is terminated for Cause is ineligible to receive any Award Payout or any payments hereunder.

6.2.2.1A participant’s termination of employment by the Company will be treated as a termination for “Cause” if it is a termination due to a participant’s unsatisfactory work performance or inability to perform the essential functions of his or her job, failure to comply with company policy, absenteeism, mutually agreed separation for performance or conduct issues, failed drug screen, invalid employment documentation, misconduct or malfeasance, the commission of a dishonest act or common law fraud, or for any other reason as determined by the Company or described as “for Cause” in an agreement between such participant and the Company.  Whether a participant’s termination is for “Cause” shall be determined in the sole discretion of the Plan Administrator or the Remuneration Committee.

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6.3 Forfeiture and Reduction of Awards upon Certain Events:  

6.3.1An Award Payout will be forfeited, and a participant shall be obligated to repay any Award, if, within one year following a participant’s termination of employment: 

6.3.1.1The Company determines that a participant engaged in conduct during the Plan Year that would have constituted the basis for a termination of employment for Cause (as determined by the Plan Administrator or the Remuneration Committee); or

6.3.1.2A participant publicly disparages the Company or any of its officers, directors or senior executive employees or otherwise makes any public statement that is materially detrimental to the interests of the Company or such individuals, in the sole discretion of the Plan Administrator.

6.3.2If the Company determines that a participant who is currently employed by the Company engaged in any inappropriate conduct during the Plan Year that resulted in the participant receiving an Award Payout that exceeded the Award Payout the participant would have received had he or she not engaged in such inappropriate conduct then the Plan Administrator, in his or her sole discretion, may require that such participant repay some or all of the Award.

7Miscellaneous.

7.1Non-Assignability.  A participant may not alienate, assign, pledge, encumber, transfer, sell or otherwise dispose of any rights or benefits awarded hereunder prior to the actual receipt thereof; and any attempt to alienate, assign, pledge, sell, transfer or assign prior to such receipt, or any levy, attachment, execution or similar process upon any such rights or benefits shall be null and void.

7.2No Right to Continue in Employment or Service.  Nothing in the Plan confers upon any employee the right to continue in the employ of the Company or any of its subsidiaries or affiliates, or interferes with or restricts in any way the right of the Company or any subsidiary or affiliate to discharge any employee at any time (subject to any contract rights of such employee).

7.3Indemnification of the Remuneration Committee, CEO and the Plan Administrator.  No member of the Remuneration Committee or the Plan Administrator, nor the CEO nor any officer or employee of the Company acting on behalf of the Remuneration Committee, the Plan Administrator, or the CEO shall be personally liable for any action, determination, or interpretation taken or made in good faith with respect to the Plan, and all members of the Remuneration Committee, the Plan Administrator, each officer of the Company, and each employee of the Company acting on behalf of the Remuneration Committee, the CEO or the Plan Administrator shall, to the extent permitted by law, be fully indemnified and protected by the Company in respect of any such action, determination, or interpretation to the fullest extent provided by law.  Except to the extent required by any unwaiveable requirement under applicable law, neither the CEO nor any member of the Remuneration Committee nor the Plan Administrator (nor any subsidiary or affiliate of the Company) nor any employee of the Company acting on behalf of the Remuneration Committee, the CEO or the Plan Administrator, shall have any duties or liabilities, including without limitation any fiduciary duties, to any participant (or any person claiming by and through any participant) as a result of this Plan, any Award or any claim arising hereunder and, to the fullest extent permitted under applicable law, each participant (as consideration for receiving and accepting an Award) irrevocably waives and releases any right or opportunity such participant might have to assert (or participate or cooperate in) any claim against the CEO or any member of the Remuneration Committee 
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or the Plan Administrator or any subsidiary of affiliate of the Company or any employee of the Company acting on behalf of the Remuneration Committee, the CEO or the Plan Administrator arising out of this Plan.

7.4Payroll Practice; No Plan Funding.  The Plan shall at all times be treated as a payroll practice, and as such, is intended to be exempt from the requirements of the Employee Retirement Income Security Act of 1974, as amended.  The Plan shall at all times be entirely unfunded and no provision shall at any time be made with respect to segregating assets of the Company for payment of any amounts hereunder.  No participant, beneficiary, or other person shall have any interest in any particular assets of the Company by reason of the right to receive an Award under the Plan.  Participants and beneficiaries shall have only the rights of a general unsecured creditor of the Company.

7.5Effect of the Plan.  Neither the adoption of this Plan nor any action of the Remuneration Committee, the CEO or the Plan Administrator shall be deemed to give any person any right to be granted an Award or any other rights except as may be evidenced by an Award, or any amendment thereto, duly authorized by the Plan Administrator and executed on behalf of the Company, and then only to the extent and upon the terms and conditions expressly set forth therein.

7.6Governing Law.  This Plan shall be construed in accordance with the laws of the State of Texas and the rights and obligations created hereby shall be governed by the laws of the State of Texas.

7.7Legal Construction.  In the event that any one or more of the terms or provisions that are contained in this Plan is held by a court of competent jurisdiction to be invalid, illegal, or unenforceable in any respect for any reason, the invalid, illegal, or unenforceable term or provision shall not affect any other term or provision that is contained in this Plan and this Plan shall be construed in all respects as if the invalid, illegal, or unenforceable term or provision had never been contained herein.

7.8Integrated Plan.  This Plan constitutes the final and complete expression of agreement among the parties hereto with respect to the subject matter hereof.

8APPENDIX

8.1Definition of Terms:
•Award Payout: The dollar amount of payout that is calculated by taking the eligible participant’s Target Percentage times the annual Base Salary times the Payout Multiplier times any applicable Pro-ration.
•Base Salary: An individual’s annual base salary as of the date a calculation is to be made without taking into consideration bonuses, overtime pay, incentive pay, car allowances, equity awards, fringe benefits or other perquisites.
•Company: Keurig Dr Pepper Inc. together with its subsidiaries.
•Disability:  An eligible employee shall be deemed to have a Disability if he or she is determined either (i) by the Social Security Administration, while the individual is an employee, to be eligible for Social Security disability benefits, or (ii) by the Plan Administrator, in its sole discretion, that the employee is permanently disabled under the standards set forth in the Keurig Dr Pepper Inc. Long-Term Disability Plan. In making such determination, the Plan Administrator may require such medical proof as it deems necessary, including the certificate of one or more licensed physicians selected by the Plan Administrator; in its sole discretion, the decision of Plan Administrator as to determinations of Disability shall be final and binding.
•Remuneration Committee: The committee of the Company’s Board of Directors who are responsible for the oversight of compensation practices within the business. 

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•Payout Multiplier: The product of the achieved payout for each of the metrics, as established by the Remuneration Committee, in its sole discretion, and set forth in Section 4.5.
•Plan Administrator: Vice President Total Rewards, or such other individual selected by the Remuneration Committee.
•Pro-rated: Time based on number of days/365 (or 366 in the event of a leap year).
•Retirement:  Voluntary termination by an employee of his or her employment with the Company on or after achieving age 60 years old with 5 years of service, and excluding any terminations where the Company had Cause to terminate the employee at the time of termination (whether known at the time of termination or later discovered by the Company after termination).
•Target Award: A participant’s Target Percentage multiplied by his or her Base Salary, as calculated by the Plan Administrator in its sole discretion.
•Target Percentage: Percentage of Base Salary assigned to an eligible participant based upon that participant’s job and level, as communicated to the participant in writing by the Plan Administrator.

    
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