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  Exhibit 10.2    
    

  

COCA-COLA PLAZA

ATLANTA, GEORGIA 

			
	

E. NEVILLE ISDELL

CHAIRMAN AND CHIEF EXECUTIVE OFFICER	 	ADDRESS REPLY TO

P.O. BOX 1734

ATLANTA, GA 30301

-----

404-676-0227

FAX: 404-515-7099

June 5, 2008 

Mr. Danny
Strickland

The Coca-Cola Company

Atlanta, Georgia 30301 

Dear
Danny: 

This
letter outlines the terms of your separation agreement with The Coca-Cola Company (the "Company").  

	1.
	Effective
July 1, 2008, you and the Company have mutually agreed that you will step down from your current position of Senior Vice President and Chief
Innovation and Technology Officer (which position is being eliminated by the Company) and resign your position as an officer of The Coca-Cola Company and any of its subsidiaries.
Thereafter, through February 28, 2009, you will continue to work your normal schedule as a Senior Advisor working on special projects as requested and assigned through the Chief Administrative
Officer.

	2.
	You
and the Company have mutually agreed that your employment with the Company will terminate on February 28, 2009 (the "Separation Date"). You shall
remain entitled to receive and be paid all compensation, vacation, and benefits otherwise arising and accruing or available to you through and including the Separation Date. Any remaining but unused
vacation to which you are entitled as of the Separation Date shall be paid to you in cash. Additionally, you will be reimbursed or paid for up to $10,000 in financial planning and related expenses
incurred by you in 2008. You also will be reimbursed for up to $10,000 in financial planning and related expenses incurred by you in 2009 prior to the Separation Date.

	3.
	If
you sign the enclosed release, you will be eligible for a benefit under the Company's Severance Pay Plan equivalent to two years of salary, based on your
current annual salary of $562,100. This amount will be paid to you in a lump sum amount on your Separation Date. 

 

Mr.
Danny Strickland

Page 2

June 5, 2008 

	4.
	Your
retirement benefits will consist of those benefits from the Employee Retirement Plan, the Supplemental Pension (Benefit) Plan, the 401(k) Thrift and
Investment Plan, the Deferred Compensation Plan, and all other Company plans in which you participate which benefits are vested as of your Separation Date. Payments under the Supplemental Pension
(Benefit) Plan will begin approximately six months following your Separation Date. You will receive a lump sum distribution of your Supplemental Thrift Plan account pursuant to the terms of the plan,
paid in a lump sum approximately six months following your Separation Date. As set forth in your initial employment letter dated February 28, 2003, you will be credited with an additional three
years of service under the terms of the Supplemental Pension (Benefit) Plan and your benefit under that plan will reflect this additional service. You are currently (and as of the Separation Date,
will remain) fully vested under each of the Company's Employee Retirement Plan and the Company's Deferred Compensation Plan (your elective deferrals only) and will remain eligible to receive and be
paid the benefits accrued thereunder from and after the Separation Date in conformity with such governing plans (your entitlements under the Deferred Compensation Plan being more particularly
addressed under Paragraphs 9 and 11 hereof).

	5.
	You
will receive an annual incentive award for 2008. The actual payment amount is contingent upon actual Company performance and your performance. Any award
will be paid on or about March 15, 2009. Your participation and any award made to you under such annual incentive plan shall be determined by the Compensation Committee in a manner consistent
with the terms of such plan as historically utilized and based on criteria policies and procedures consistent with those applicable to Company executives having a title of Senior Vice President and
Chief Officer of any Company department.

	6.
	You
will receive an annual incentive award for 2009 prorated for two months. The actual payment amount is contingent upon actual Company performance and your
performance. Any award will be paid on or about March 15, 2010. Your participation and any award made to you under such annual incentive plan shall be determined by the Compensation Committee
in a manner consistent with the terms of such plan as historically utilized and based on criteria policies and procedures consistent with those applicable to Company executives having a title of
Senior Vice President and Chief Officer of any Company department.

	7.
	Pursuant
to the terms of the Company's long term incentive programs and plans and your related Restricted Stock Agreements (collectively the "Equity Plans"),
you shall remain and be eligible to receive your rights and benefits under each of the Equity Plans as summarized below. You will not receive any additional equity grants under such Equity Plans from
and after the date hereof. 

2

 

Mr.
Danny Strickland

Page 3

June 5, 2008 

        2004-2006 Plan 

	•
	Total of 9900 shares will be released in December 2008. 

        2005-2007 Plan 

	•
	Total of 21,000 shares will be released within 90 days of your Separation Date. 

         2006-2008 Plan 

	•
	Upon certification of results at the Compensation Committee meeting in February 2009, the number of shares earned will be
determined and issued to you. 

 
	•
	These shares will be released within six months of your Separation Date. 

         2007-2009 Plan 

	•
	Your target number of shares (13,379) will be granted to you prior to your Separation Date, subject to further
restrictions. 

 
	•
	The Performance Period continues. Shares remain subject to forfeiture until certification of results (February 2010). If
the Performance Criteria are met, the applicable number of shares previously granted will be released to you on March 1, 2010. The target number of shares is the maximum that may be released;
you may receive less depending on Company performance. 

 
	•
	You will receive dividends for the shares during the Performance Period. 

         2008-2010 Plan 

	•
	All PSUs are forfeited.

	8.
	All
options which you previously have received will be exercisable according to the terms of the Company's applicable stock option plans and programs as well
as your related Stock Option Grant Agreements (collectively the "Option Plans"). When you exercise your vested stock options, you will be personally liable for paying any taxes owed on such exercises.
You will not receive any additional stock option grants from and after the date hereof.

	9.
	You
will receive distributions from the Deferred Compensation Plan of your elective deferrals and any related earnings pursuant the terms of the plan and
your elections on file. However, distributions will begin no sooner than six months following your Separation Date. 

3

 

Mr.
Danny Strickland

Page 4

June 5, 2008 

	10.
	We
will recommend to the Compensation Committee in February 2009 that they release the Second Award (19,000 shares) granted under the terms of the Stock
Award Agreement dated July 16, 2003.

	11.
	As
set forth in your initial employment letter dated February 28, 2003, the Company has made a $400,000 Discretionary Contribution to your account
held under the Deferred Compensation Plan. We will recommend to the Compensation Committee in July 2008 that they waive the vesting provision on such Company Discretionary Contribution so as to cause
you to be fully vested in same. You will receive distribution pursuant the terms of the Deferred Compensation Plan and your elections on file. However, distributions will begin no sooner than six
months following your Separation Date

	12.
	You
will be eligible for retiree health coverage from and after the Separation Date.

	13.
	The
Company will provide at its expense outplacement services through a designated services provider.

	14.
	The
terms and conditions in this letter are further conditioned upon your signing (as of the Separation Date) and adhering to the attached Full and Complete
Release and Agreement on Confidentiality and Competition, and will be subject to the approval of the Compensation Committee. 

Danny,
thank you for the time you have devoted to the Company. Please feel free to give me a call if you have any questions or would like more information regarding the above. 

Sincerely, 

/s/
E. Neville Isdell 

E.
Neville Isdell 

Agreed
to and accepted this     5th     day of June, 2008 

			
	/s/ DANNY STRICKLAND

Danny Strickland	 	 

4

 
 
 

  FULL AND COMPLETE RELEASE
  AND AGREEMENT ON COMPETITION,
  TRADE SECRETS AND CONFIDENTIALITY    
    

 Release.  

        I, Danny Strickland, in consideration of severance payments under The Coca-Cola Company Severance Pay Plan (the "Company
Severance Plan"), the payments and benefits described in the attached letter dated June 5, 2008 (the "Separation Letter"), and other good and valuable consideration, for myself and my heirs,
executors, administrators and assigns, do hereby knowingly and voluntarily release and forever discharge The Coca-Cola Company and its subsidiaries, affiliates, joint ventures, joint
venture partners, and benefit plans (collectively "the Company"), and their respective current and former directors, officers, administrators, trustees, employees, agents, and other representatives
(collectively and along with the Company the "Releasees"), from all debts, claims, actions, causes of action (including without limitation those under the Fair Labor Standards Act of 1938, as amended,
29 U.S.C. § 201 et seq. (the "FLSA"); the Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. § 1001 et seq. ("ERISA"); the Worker Adjustment
and Retraining Notification Act of 1988, 29 U.S.C. § 2101 et seq. ("WARN"); and those federal, state, local, and foreign laws prohibiting employment discrimination based on age,
sex, race, color, national origin, religion, disability, veteran or marital status, sexual orientation, or any other protected trait or characteristic, or retaliation for engaging in any protected
activity, including without limitation the Age Discrimination in Employment Act of 1967, 29 U.S.C. § 621 et seq. (the "ADEA"), as amended by the Older Workers Benefit Protection
Act, 104 Stat. 978 (the "OWBPA"); the Equal Pay Act of 1963, 9 U.S.C.§ 206, et seq. (the "EPA"); Title VII of The Civil Rights Act of 1964, as amended, 42 U.S.C.
§ 2000e et seq. ("Title VII"); the Civil Rights Act of 1866, 42 U.S.C. § 1981; the Civil Rights Act of 1991, 42 U.S.C. § 1981a; the Americans
with Disabilities Act, 42 U.S.C. § 12101 et seq. (the "ADA"); the Rehabilitation Act of 1973, 29 U.S.C. § 791 et seq.; the Family and Medical Leave Act of 1993,
28 U.S.C. §§ 2601 and 2611 et seq. (the "FMLA"); and comparable state, local, and foreign causes of action, whether statutory or common law), suits, dues, sums of money,
accounts, reckonings, covenants, contracts, claims for costs or attorneys' fees, controversies, agreements, promises, and all liabilities of any kind or nature whatsoever, at law, in equity, or
otherwise, KNOWN OR UNKNOWN, fixed or contingent, which I ever had, now have, or may have, or which I, my heirs, executors, administrators or assigns hereafter can, shall, or may have, from the
beginning of time through the date on which I sign this Full and Complete Release and Agreement on
Trade Secrets, Competition and Confidentiality (this "Agreement"), including without limitation those arising out of or related to my employment or separation from employment with the Company
(collectively the "Released Claims"). 

        Notwithstanding
the foregoing, it is understood and agreed that I do not hereby waive, but rather I have retained and shall continue to have all rights and entitlements to receive and
the Company shall remain obligated to fully perform and pay (or cause to be performed or paid) (i) all amounts or payments owed to me as contemplated under the Separation Letter,
(ii) all of my rights to seek and receive indemnification from the Company for and with respect to all acts, errors or omissions committed by me in my capacity as a shareholder, director,
officer, employee, fiduciary, agent or representative of the Company all in the manner provided under the Company's by-laws (as hereinafter contemplated) and applicable law, and
(iii) all of my accrued and vested benefits (including pension or deferred compensation benefits) as determined through and including the Effective Date under the Company's applicable and
governing plans and programs including without limitation all rights received or attributable to any coverage extended me under any insurance policies maintained with or through third parties. 

        I
acknowledge and represent that (1) I have received all leave required under the FMLA, and (2) do not claim that Releasees violated or denied me rights under the FMLA. I
further acknowledge and represent that I (1) was properly classified under the Fair Labor Standards Act of 1938, as 

5

 

amended
("FLSA"), (2) have been fully paid for hours I worked for the Company and (3) do not claim that Releasees violated or denied me rights under the FLSA. 

        I
fully understand and agree that: 

	1.
	this
Agreement is in exchange for severance benefits under the Company Severance Plan, the payments and benefits described in the Separation Letter, and
other special compensation to which I would otherwise not be entitled;

	2.
	no
rights or claims are released or waived that may arise after the date this Agreement is signed by me;

	3.
	nothing
in this Agreement shall prohibit me from challenging the validity of the above release as to any claims under the ADEA or from filing a charge or
complaint with the Equal Employment Opportunity Commission (the "EEOC") or any other government agency so long as I do not seek, accept or receive any individual relief whether monetary or equitable
in or as a result of any such charge or complaint;

	4.
	I
am hereby advised to consult with an attorney before signing this Agreement;

	5.
	I
have 21 days from my receipt of this Agreement within which to consider whether to sign it;

	6.
	I
have seven days following my signature of this Agreement to revoke the Agreement; and

	7.
	this
Agreement shall not become effective or enforceable until the revocation period of seven days has expired. 

        If
I choose to revoke this Agreement, I must do so by notifying the Company in writing. This written notice of revocation must be mailed by U.S. first class mail, or U.S. certified mail
within the seven-day revocation period and addressed as follows: 

The
Coca-Cola Company

Ginny Sutton

One Coca-Cola Plaza

Atlanta, GA 30313 

        If
there is any claim for loss of consortium, or any other similar claim, arising out of or related to my employment or separation of employment with the Company, I will indemnify and
hold the Company harmless from any liability, including costs and expenses (as well as reasonable attorneys' fees) incurred by the Company as a result of any such claim. 

 Company Release.  

        For and in consideration of my release of the Company under the preceding provisions and my undertaking of all covenants and agreements
provided under this Agreement and other good and valuable consideration, the Company (as defined herein) does hereby knowingly and voluntarily release and forever discharge me and my heirs, executors,
administrators and assigns (collectively the "Executive Released Parties"), from all debts, claims, actions, causes of action, suits, dues, sums of money, accounts, reckonings, covenants, contracts,
claims for costs or attorneys' fees, controversies, agreements, promises, and all liabilities of any kind or nature whatsoever, at law, in equity, or otherwise, KNOWN OR UNKNOWN, fixed or contingent,
which the Company ever had, now have, or may have, or which the Company hereafter can, shall or may have, from the beginning of time through and including the date hereof, including without limitation
those arising out of or related to my employment or my separation from employment with the Company. 

6

 

        Notwithstanding
the foregoing, it is understood and agreed that the Company does not hereby waive, but rather the Company shall have retained and continue to have all rights and
entitlements to enforce all of its rights and my obligations as against me as provided or contemplated under and in accordance with the terms of this Agreement or the Separation Letter. 

        It
is further understood and agreed that this Agreement is not and shall not be construed to be an admission of liability of any kind on the part of any one or more of the Executive
Released Parties. 

 Future Cooperation.  

        I agree and covenant that I shall, to the extent reasonably requested in writing, cooperate with and serve in any capacity requested by
the Company in any investigation and/or threatened or pending litigation (now or in the future) in which the Company is a party, and regarding which I, by virtue of my employment with the Company,
have knowledge or information relevant to said litigation, including, but not limited to, (1) meeting with representatives of the Company to provide truthful information regarding my knowledge,
and (2) providing, in any jurisdiction in which the Company requests, truthful testimony relevant to said litigation; provided that in all events the Company shall (a) reimburse me for
actual and reasonable expenses incurred in connection with such
cooperation including all travel, lodging and accommodations, (b) remain and be exclusively responsible for all costs incurred in undertaking such litigation including all attorneys' fees,
court costs, and other expenses consistent with the Company's by-laws, and (c) notify me as promptly as possible as to its need for my assistance and cooperate with me in scheduling
my participation so as to reasonably accommodate my other personal and professional obligations and commitments.. 

 Trade Secrets and Confidential Information.  

        I covenant and agree that I have held and shall continue to hold in confidence all Trade Secrets of the Company that came into my
knowledge during my employment by the Company and shall not disclose, publish or make use of at any time such Trade Secrets for as long as the information remains a Trade Secret. "Trade Secret" means
any technical or non-technical data, formula, pattern, compilation, program, device, method, technique, drawing, process, financial data, financial plan, product plan, list of actual or
potential customers or suppliers or other information similar to any of the foregoing, which is not commonly known or available to the public and which (1) derives economic value, actual or
potential, from not being generally known to and not being readily ascertainable by proper means by other persons who can derive economic value from its disclosure or use, and (2) is the
subject of efforts that are reasonable under the circumstances to maintain its secrecy. 

        I
also covenant and agree that, for the period beginning on the date I sign this Agreement and ending February 28, 2011 ("Nondisclosure Period"), I will hold in confidence all
Confidential Information of the Company that came into my knowledge during my employment by the Company and will not disclose, publish or make use of such Confidential Information. "Confidential
Information" means any data or information, other than Trade Secrets, that is valuable to the Company and not generally known to the public or to competitors of the Company but shall not include
either (i) any information which is available from any public source other than by means of my disclosure of such information to such source, or (ii) any information generated by me in
the course of my employment which consists of contact information related to my personal or professional affiliations consisting solely of names, addresses, phone numbers and e-mail
addresses. 

        The
restrictions stated in this Agreement are in addition to and not in lieu of protections afforded to trade secrets and confidential information under applicable state law. Nothing in
this Agreement is intended to or shall be interpreted as diminishing or otherwise limiting the Company's right under applicable state law. Notwithstanding the foregoing, nothing contained herein shall
prevent me from disclosing or otherwise utilizing any information (i) in any manner required by applicable law, judicial 

7

 

order
or other governmental mandate or investigation provided I shall advise the Company of any such intended disposition or use and reasonably cooperate with the Company in allowing the Company to
seek and obtain from the recipient governmental or judicial body any protective order or assurance of confidentiality regarding such information, or (ii) in fulfillment of my duties or
obligations owed to the Company, or (iii) to the limited extent reasonably necessary to permit my defense of any claim made against me or my enforcement of any rights held by me which claim or
rights are dependent upon the information so disclosed provided I shall advise the Company of any such intended disposition or use and reasonably cooperate with the Company in allowing the Company to
seek and obtain from the recipient governmental or judicial body any protective order or assurance of confidentiality regarding such information. 

 Return of Materials.  

        I further covenant and agree that I have or shall promptly deliver to the Company all memoranda, notes, records, manuals or other
documents, including all copies of such materials and all documentation prepared or produced in connection therewith, containing Trade Secrets or Confidential Information regarding the Company's
business, whether made or compiled by me or furnished to me by virtue of my employment with the Company. I have or shall promptly deliver to the Company all vehicles, computers, credit cards,
telephones, handheld electronic devices, office equipment, and other property furnished to me by virtue of my employment with the Company. 

 No Publicity.  

        During the Nondisclosure Period, I will not publish any opinion, fact, or material, deliver any lecture or address, participate in the
making of any film, radio broadcast or television transmission, or communicate with any representative of the media relating to confidential matters regarding the business or affairs of the Company
which I was involved with during my employment; provided, that nothing contained herein shall prevent me from undertaking any such activities otherwise prohibited hereunder with respect to
presentations focusing on me and my personal experience or knowledge which may include ancillary and historical recitations of my past experiences with the Company and which do not otherwise involve
disclosure of matters or materials which have not been previously or otherwise publicly released. I understand that nothing in this Agreement or in
this paragraph: (1) is intended in any way to intimidate, coerce, deter, persuade, or compensate me with respect to providing, withholding, or restricting any communication whatsoever to the
extent prohibited by law; (2) shall prevent me from filing and administrative charge with the EEOC or participating in an investigation or proceeding by the EEOC or any other governmental
agency; or (3) shall prevent me from providing testimony or evidence if I am subpoenaed or ordered by a court or other governmental authority to do so. 

 Non Compete and Non Solicitation.  

Definitions.

For
the purposes of this Section, the following definitions apply: 

        (a)    "Non
Solicitation Period" means the period beginning on the date I sign this Agreement and ending on February 28, 2011. 

        (b)    "Restricted
Activities" means the development or oversight of innovation, research and development and/or quality strategies, activities or business plans for Restricted
Businesses. 

        (c)    "Territory"
means any location in which the Company conducts business. 

        (d)    "Restricted
Businesses" means 1) companies whose primary business is the manufacture, sale, distribution and marketing of either carbonated soft drinks, coffee,
tea, water, juices or fruit-based 

8

 

beverages
("Non-alcoholic Beverages") or beverage enhancers, beverage solutions, beverage enablers or other additives, which additives primarily are intended for use in
non-alcoholic beverages, ("Beverage Enhancers"), and 2) companies whose business activities includes the manufacture, sale, distribution and marketing of Non-alcoholic
Beverages or Beverage Enhancers, but for whom such business(es) may not be the company's primary business ("Non-Beverage Companies"). 

        (e)    "Competing
Business Segment" means any subsidiary, division or unit of the business of a company, where such subsidiary, division or unit manufactures, sells,
distributes or markets Non-alcoholic Beverages or Beverage Enhancers. 

 Non Compete.  

        I hereby covenant with the Company that I will not, within the Territory prior to February 28, 2011, without the prior written
consent of the CEO, engage in any Restricted Activities for or on behalf of (including in a consulting capacity) any Restricted Business. Notwithstanding the foregoing, I may perform services for
Non-Beverage Companies (other than PepsiCo, its subsidiaries and affiliates, including but not limited to Pepsi Bottling Group) that have a Competing Business Segment, provided I do not
perform services for such Competing Business Segment, and provided I notify The Coca-Cola Company's Chief Executive Officer (CEO) of the nature of such service in writing within a
reasonable time prior to beginning of such services. 

 Non Solicitation of Employees.  

        I hereby covenant and agree that I will not, within the Territory and during the Non Solicitation Period, without the prior written
consent of the CEO, solicit or attempt to solicit for employment for or on behalf of any corporation, partnership, venture or other business entity any person who, on February 28, 2009 or
within twelve months prior to that date, was employed by the Company and with whom I had professional interaction during the last twelve months of my employment with the Company (whether or not such
person would commit a breach of contract). 

 Non Solicitation of Customers.  

        I hereby covenant and agree that I will not, for or on behalf of any Restricted Business, within the Territory and during the Non
Solicitation Period, without the prior written consent of the CEO, solicit or attempt to solicit, directly or indirectly, any business related to the Restricted Businesses from any of the Company's
customers, including actively sought prospective customers, with whom I had professional interaction during my employment with the Company. 

 Reasonable and Necessary Restrictions.  

        I acknowledge that during the course of my employment with the Company I have received or will receive and had or will have access to
Confidential Information and Trade Secrets of the Company, including but not limited to confidential and secret business and marketing plans, strategies, and studies, detailed client/customer/bottler
lists and information relating to the operations and business requirements of those clients/customers/bottlers and, accordingly, I am willing to enter into the covenants contained in this Agreement in
order to provide the Company with what I consider to be reasonable protection for its interests. 

        I
acknowledge that the restrictions, prohibitions and other provisions hereof, are reasonable, fair and equitable in scope, terms and duration, and are necessary to protect the
legitimate business interests of the Company. 

        I
acknowledge and agree that in the event I breach, or threaten in any way to breach, or it is inevitable that I will breach, any of the provisions of this Agreement, damages shall be an
inadequate 

9

 

remedy
and the Company shall be entitled, without bond, to seek injunctive or other equitable relief in addition to all other rights otherwise available to the Company at law or in equity. 

 Complete Agreement.  

        This Agreement together with the Separation Letter is the complete understanding between me and the Company in respect of the subject
matter of this Agreement and supersedes all prior agreements relating to the same subject matter. I have not relied upon any representations, promises or agreements of any kind except those set forth
herein and in the Separation Letter in signing this Agreement. 

 Severability.  

        In the event that any provision of this Agreement should be held to be invalid or unenforceable, each and all of the other provisions
of this Agreement shall remain in full force and effect. If any provision of this Agreement is found to be invalid or unenforceable, such provision shall be modified as necessary to permit this
Agreement to be upheld and enforced to the maximum extent permitted by law. 

 Governing Law.  

        Except to the extent preempted by Federal Law, this Agreement is to be governed and enforced under the laws of the State of Delaware
(except to the extent that Delaware conflicts of law rules would call for the application of the law of another jurisdiction) and any and all disputes arising under this Agreement are to be resolved
exclusively by courts sitting in Delaware. I hereby consent to the jurisdiction of such courts. 

 Successors and Assigns.  

        This Agreement inures to the benefit of the Company and its successors and assigns and to the benefit of my heirs, executors,
administrators, to the extent not precluded by the Company's benefit or compensation plans. 

 Amendment/Waiver.  

        No amendment, modification or discharge of this Agreement shall be valid or binding unless set forth in writing and duly executed by
each of the parties hereto. 

 Indemnification.  

        Nothing in this Agreement shall affect any rights I may have under Article VII of the Company's by-laws in effect as
of the date of this Agreement. 

 Acknowledgment.  

        I have carefully read this Agreement, fully understand each of its terms and conditions, and intend to abide by this Agreement in every
respect. As such, I knowingly and voluntarily sign this Agreement. 

[The
remainder of this page is intentionally blank.

Signatures contained on the following page.] 

10

 

					
	 	 	Signature:	 	  

Danny Strickland
	

 	
 	

Date:	
 	

 

	

 	
 	
THE COCA-COLA COMPANY
	

 	
 	

By:	
 	

 
	

 	
 	

Title:	
 	

 
	

 	
 	

Date:	
 	

 

11

QuickLinks

Exhibit 10.2

FULL AND COMPLETE RELEASE AND AGREEMENT ON COMPETITION, TRADE SECRETS AND CONFIDENTIALITYExhibit 10.35

 

FIFTH AMENDMENT TO

AMENDED AND RESTATED

REFINANCING AGREEMENT

 

THIS FIFTH AMENDMENT TO AMENDED AND RESTATED REFINANCING
AGREEMENT (the “Amendment”),
dated the 11th day of July, 2008, is made by and between

 

STRATEGIC TECHNOLOGIES, INC., a North Carolina corporation (“Strategic”);
and

 

AVNET, INC. (successor by assignment to MRA Systems, Inc. d/b/a Access
Distribution), a Delaware corporation (“Avnet”),

 

to
the Amended and Restated Refinancing Agreement, dated as of May 20, 2005
(as previously amended by First Amendment thereto, dated June 22, 2006, by
Second Amendment thereto, dated May 1, 2007, by Third Amendment thereto, dated September 10, 2007
and by Fourth Amendment thereto, dated October 8, 2007, and as may be
further amended, modified, restated or supplemented from time to time, the “Agreement”),
between Strategic and Avnet. All capitalized terms used herein without
definition shall have the meanings ascribed to such terms in the Agreement.

 

RECITALS

 

A.                                   The Agreement contains various agreements
between Strategic and Avnet regarding indebtedness owing by Strategic to Avnet.

 

B.                                     Strategic and Avnet have agreed to amend the
Agreement as set forth in this Amendment.

 

STATEMENT OF AGREEMENT

 

NOW,
THEREFORE, in consideration of the premises and for other good and valuable
consideration, the receipt and sufficiency of which are hereby expressly
acknowledged, Strategic and Avnet hereby agree as follows:

 

[remainder of page intentionally left blank]

 

 

ARTICLE I

 

AMENDMENTS TO AGREEMENT

 

The
Agreement is hereby amended as follows:

 

1.1                                Definitions. Section 1 of the Agreement is amended as follows:

 

1.1.1  The defined term “Positive Excess Cash
Flow Quarter” is deleted; and

 

1.1.2  The defined term “Excess Cash Flow” is
amended in its entirety to read as follows:

 

“Excess
Cash Flow” shall mean:

 

(a)                                  on the last day of the first three fiscal
quarters in each fiscal year of Strategic, the amount of cash and cash
equivalents on such day in excess of $500,000 shown on Strategic’s balance
sheet as of such date that is required to be delivered to Access pursuant to Section 9.c.
of this Agreement, and

 

(b)                                 on the last day of the fourth fiscal quarter
in each fiscal year of Strategic, the amount of cash and cash equivalents on
such day in excess of $500,000 shown on Strategic’s balance sheet as of such
date that is required to be delivered to Access pursuant to with Section 9.d.
of this Agreement.

 

1.2                                Interest. Section 5.a. of the Agreement is amended by deleting therefrom
the date “September 30, 2008” and by substituting in lieu thereof the date
“September 30, 2009.”

 

1.3                                 Excess Cash Flow Recapture. Section 6.d. of the Agreement is
amended in its entirety to read as follows:

 

“d.                                Excess Cash Flow Recapture. On each date that Access receives Strategic’s
balance sheets described in the definition of Excess Cash Flow, provided that
the most recent cash projection delivered to Access pursuant to Section 9.k.
of this Agreement for the fiscal quarter immediately following the date of such
balance sheet shows a projected net change in cash and cash equivalents of $0
or greater in such fiscal quarter, Strategic shall pay Access the Excess Cash
Flow shown on such balance sheet.”

 

1.4                                 Covenants Concerning Cary Real Property. Section 8.m.(iv) of the Agreement
is amended by deleting therefrom the date “September 30, 2008” and by
substituting in lieu thereof the date “September 30, 2009.”

 

2

 

1.5                                      Additional Warrant. Section 8.o. of the Agreement is
amended in its entirety to read as follows:

 

“o.                                Additional Warrant. In the event the principal of and accrued interest
on the Consolidated 2007 Note have not been repaid in full by September 30,
2009, Strategic shall cause Consonus to execute an additional warrant providing
for the right of Avnet to purchase 231,813 additional shares of common stock of
Consonus at a price of $0.000173 per share and otherwise containing
substantially the same terms as are contained in the Warrant. Until the
execution of such additional warrant, the foregoing number of additional shares
and the price at which such additional shares may be purchased shall be
adjusted in the same manner as the Underlying Shares and the Warrant Price (as
defined in the Warrant) are adjusted pursuant to the terms of the Warrant.

 

1.6                                      Financial Statements. A new Section 9.k. of the Agreement is
added as follows:

 

“k.                                 Cash Projection. By no later than the 25th day of
every month, Strategic will deliver to Avnet a detailed cash projection for the
following three months in a form reasonably satisfactory to Avnet.

 

1.7                                      Fixed Charge Coverage
Ratio. Section 10.a. of the Agreement is
amended in its entirety to read as follows:

 

“a.                                 Fixed Charge Coverage
Ratio. Achieve a Fixed Charge Coverage Ratio of not
less than the ratio shown in Table I below for the period corresponding
thereto:

 

	
  TABLE I

  

 

	
  Ratio

  	
   

  	
  Period

  
	
  0.75:1.0

  	
   

  	
  Six
  months ended on the last day of each of the first and second fiscal quarters
  in the 2008 fiscal year

  
	
  0.85:1.0

  	
   

  	
  Six
  months ended on the last day of each of the third and fourth fiscal quarters
  in the 2008 fiscal year

  
	
  1.0:1.0

  	
   

  	
  Six
  months ended on the last day of each of the first fiscal quarter in the 2009
  fiscal year and each fiscal quarter thereafter

  

 

3

 

In the event that Strategic fails to achieve the ratio shown in Table I
above for any period corresponding thereto (each a “Table I Noncompliance
Period”), such failure shall not result in an Event of Default if Strategic
achieves the ratio shown in Table II below for the period corresponding thereto
that ends on the same date as the corresponding Table I Noncompliance Period:

 

	
  TABLE II

  

 

	
  Ratio

  	
   

  	
  Period

  
	
  0.75:1.0

  	
   

  	
  Three
  months ended on the last day of each of the first and second fiscal quarters
  in the 2008 fiscal year

  
	
  0.85:1.0

  	
   

  	
  Three
  months ended on the last day of each of the third and fourth fiscal quarters
  in the 2008 fiscal year

  
	
  1.0:1.0

  	
   

  	
  Three
  months ended on the last day of each of the first fiscal quarter in the 2009
  fiscal year and each fiscal quarter thereafter

  

 

For
the avoidance of doubt, it is understood and agreed that if Strategic fails to
achieve the ratio shown in Table I above for any period corresponding thereto
and also fails to achieve the ratio shown in Table II above for the period
corresponding thereto that ends on the same date as the corresponding Table I
Noncompliance Period, then such failure shall result in an Event of Default
pursuant to Section 13.b. of this Agreement.”

 

1.8                                      Capital Expenditures. Section 10.b. of the Agreement is
amended in its entirety to read as follows:

 

“b.                                Capital Expenditures. Not make aggregate Capital Expenditures in any
fiscal year in excess of $550,000; provided,  however, the
following Capital Expenditures shall not be taken into account in applying the foregoing
limitation: building repairs up to $150,000 in the 2008 fiscal year and such
other exceptions as Strategic shall request to Avnet in writing and as Access
may agree to in writing in its sole and absolute discretion.”

 

1.9                                      Quarterly Revenue. Section 10.c. of the Agreement is
amended in its entirety to read as follows:

 

“c.                                 Achieve for each fiscal quarter of Strategic
gross revenue (as set forth on Strategic’s Financial Statements and schedules)
in such fiscal quarter at

 

4

 

least
equal to 75% of the Approved Projections of gross revenue provided to Access
for such fiscal quarter.”

 

1.10                           Total Trade Debt to Accounts Receivable. Section 10.e. is amended in its
entirety to read as follows:

 

“e.                                 Net Trade Debt to Accounts Receivable. Not permit (a) Net Trade Debt at any
time to be more than (b) 125% of Strategic’s gross accounts receivable at
such time.”

 

ARTICLE II

 

REPRESENTATIONS AND WARRANTIES

 

Strategic
hereby represents and warrants to Avnet that:

 

2.1                                 Compliance with the Agreement. As of the date of this Amendment, Strategic
is in compliance with all of the terms and provisions set forth in the
Agreement and the other Loan Papers to be observed or performed by Strategic.

 

2.2                                 Representations in the Agreement. The representations and warranties of Strategic
set forth in the Agreement and the other Loan Papers to which Strategic is a
party are true and correct in all material respects except to the extent that
such representations and warranties relate solely to or are specifically
expressed as of a particular date or period which is past or expired as of the
date hereof.

 

2.3                                 No Default. As of the date of this Amendment, no Default exists or is continuing.

 

ARTICLE III

 

GENERAL

 

3.1                                 Loan Papers. The Agreement and the Loan Papers are amended to provide that any
reference therein to the Agreement shall mean, unless otherwise specifically
provided, the Agreement as amended hereby, and as further amended, restated,
supplemented or modified from time to time.

 

3.2                                 Full Force and Effect. As expressly amended hereby, the Agreement
and the other Loan Papers shall continue in full force and effect in accordance
with the provisions thereof. As used in the Agreement and the other Loan
Papers, “hereinafter,” “hereto,” “hereof,” or words of similar import, shall,
unless the context otherwise requires, mean the Agreement or the other Loan
Papers, as the case may be, as amended by this Amendment.

 

3.3                                 Applicable Law. This Amendment shall be governed by and
construed in accordance with the internal laws and judicial decisions of the
State of North Carolina.

 

5

 

3.4                                 Counterparts. This Amendment may be executed in one or
more counterparts, each of which shall constitute an original, but all of which
when taken together shall constitute but one and the same instrument.

 

3.5                                 Further Assurances. Strategic shall execute and deliver to
Avnet such documents, certificates and opinions as Avnet may reasonably request
to effect the amendments contemplated by this Amendment.

 

3.6                                 Headings. The headings of this Amendment are for the purpose of reference only and
shall not effect the construction of this Amendment.

 

3.7                                 Expenses. Strategic shall reimburse Avnet for Avnet’s legal fees and expenses incurred
in connection with the preparation, negotiation, execution and delivery of this
Amendment and all other agreements and documents contemplated hereby.

 

3.8                                 Waiver of Jury Trial. TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, STRATEGIC AND AVNET EACH WAIVES THE RIGHT TO TRIAL BY JURY IN
ANY ACTION, SUIT, PROCEEDING OR COUNTERCLAIM OF ANY KIND ARISING OUT OF OR
RELATED TO THIS AMENDMENT, THE AGREEMENT OR THE OTHER LOAN PAPERS OR THE
TRANSACTIONS RELATED HERETO OR THERETO.

 

[signatures on next page]

 

6

 

IN WITNESS WHEREOF, the parties hereto have
caused this Amendment to be executed and delivered by their duly authorized
officers to be effective on the day and year first above written.

 

	
   

  	
  STRATEGIC:

  
	
   

  	
   

  
	
   

  	
  STRATEGIC TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael Shook

  
	
   

  	
   

  	
  Name:

  	
  Michael Shook

  
	
   

  	
   

  	
  Title:

  	
  President

  
					

 

 

	
   

  	
  AVNET:

  
	
   

  	
   

  
	
   

  	
  AVNET, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ W. R. Crowell

  
	
   

  	
   

  	
  Name:

  	
  W. R. Crowell

  
	
   

  	
   

  	
  Title:

  	
  SVP, CFO

  
						

 

 

[signatures continued on next page]

 

[Fifth Amendment to Amended and Restated
Refinancing Agreement]

 

 

Consonus
hereby joins in the execution of this Amendment solely for the purpose of
reaffirming its agreement to be bound by the covenant contained in Section 8.q
of the Agreement.

 

	
   

  	
  CONSONUS TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael Shook

  
	
   

  	
   

  	
  Name:

  	
  Michael Shook

  
	
   

  	
   

  	
  Title:

  	
  President

  	 

						

 

[signatures continued on next page]

 

[Fifth Amendment to Amended and Restated Refinancing Agreement]

 

 

The Guarantors hereby join in the execution of this
Amendment for the purposes of consenting thereto and reaffirming the continuing
validity and enforceability of the personal guaranty agreements executed by
each of them on or about April 9, 2002, as from time to time amended, in
accordance with their respective terms.

 

 

	
   

  	
  /s/
  Michael G. Shook

  
	
   

  	
  Michael G. Shook

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  William M. Shook

  
	
   

  	
  William
  M. Shook

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Ivrin Miglietta

  
	
   

  	
  Ivrin
  Miglietta

  

 

 

[Consent of Guarantors to Fifth Amendment

to Amended and Restated Refinancing
Agreement]

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