Document:

Form of Bottler's Agreement

 EXHIBIT 10.1 

Bottler’s Agreement 
 THIS
AGREEMENT, made and entered into with effect from April 1, 2014 by and among THE COCA-COLA COMPANY, a corporation organized and existing under the laws of the State of Delaware, United
States of America, with principal offices at One Coca-Cola Plaza, N.W, in the City of Atlanta, State of Georgia 30313, United States of America (hereinafter referred to as the “Company”); COCA-COLA (JAPAN) COMPANY, LIMITED, a
corporation organized and existing under the laws of Japan, with principal offices at 6-3, Shibuya 4-chome, Shibuya-ku, Tokyo 150-0002, Japan (hereinafter referred to as “CCJC”); and
                                        
, a corporation organized and existing under the laws of Japan, with principal offices at
                                         
                                       
(hereinafter referred to as the “Bottler”); 
 WITNESSETH: 

WHEREAS, 
  

	 	A.	The Company is engaged in the manufacture and the sale of beverage bases, essences, and other ingredients and a beverage base concentrate (hereinafter collectively referred to as the “Concentrate”), the
formula for which is an industrial secret of the Company, from which a non-alcoholic beverage syrup or powder (hereinafter collectively referred to as the “Syrup”) is prepared, and is also engaged in
the manufacture and sale of the Syrup, which Concentrate or Syrup is used in the preparation of a non-alcoholic beverage product (hereinafter referred to as the “Beverage”) for sale in bottles and
other containers and in other forms or manners; 

  

	 	B.	The Company is the owner of the trade marks including “Coca-Cola” and “Coke” that distinguish the Concentrate, the Syrup and the Beverage, the trade mark
consisting of a Distinctive Bottle in various sizes in which the Beverage has been marketed for many years, the depiction of the Distinctive Bottle, the Dynamic Ribbon device, and the intellectual property embodied in the distinctive trade dress,
other design devices and packaging elements associated with the Concentrate, the Syrup and the Beverage (said trade marks “Coca-Cola”, “Coke”, the Distinctive Bottle, the depiction of the
Distinctive Bottle, the Dynamic Ribbon device, the intellectual property embodied in the distinctive trade dress, other design devices and packaging elements associated with the Concentrate, the Syrup and the Beverage, and any additional trade marks
that the Company may adopt from time to time to distinguish the Concentrate, the Syrup and the Beverage being hereinafter collectively referred to as the “Trade Marks”); 

 

	 	C.	The Company has the exclusive right to prepare, package, distribute and sell the Beverage and the right to manufacture and sell the Concentrate and the Syrup in Japan, among other countries; 

 

	 	D.	The Company has designated and authorized certain third parties, including but not limited to CCJC, to supply the Concentrate to the Bottler (said third parties being hereinafter referred to as the “Authorized
Suppliers”); 

  

	 	E.	The Bottler has requested an authorization from the Company to use the Trade Marks in connection with the preparation, packaging, distribution and sale of the Beverage in and throughout a territory as defined and
described in this Agreement; and 

  

	 	F.	The Company is willing to grant the requested authorization to the Bottler under the terms and conditions set forth in this Agreement. 

  
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 NOW, THEREFORE, the parties agree as follows: 

 

	I.	OBJECT OF THE AGREEMENT 

 1. 

 

	 	(a)	The Company hereby authorizes the Bottler, and the Bottler undertakes, upon the following terms and conditions to prepare and package the Beverage in such containers as may be approved by the Company in writing from
time to time (hereinafter referred to as “Approved Containers”) and to distribute and sell the same under the Trade Marks, in and throughout, but only in and throughout, the following territory (hereinafter referred to as the
“Territory”): 

 [Insert] 
  

	 	(b)	It is understood and agreed that the Company may upon notice in writing to the Bottler withdraw the authorization for any of the Approved Containers except for such containers as described in the said approval by the
Company as refillable. It is further understood and agreed that any such withdrawal of an authorization in respect of any container for the Beverage shall be upon reasonable notice and shall take into account the strategic and operational
marketing requirements for the Beverage. In the event of such withdrawal, the provisions of Clause 26 (c) shall apply to containers in respect of which authorization has been withdrawn.

 

	 	2.	The Company or Authorized Suppliers will sell and deliver to the Bottler such quantities of the Concentrate as may be ordered by the Bottler from time to time, provided that the Bottler will order, and the Company or
Authorized Suppliers will sell and deliver to the Bottler, only such quantities of the Concentrate as may be necessary and sufficient to implement this Agreement. In this regard, the Bottler covenants and agrees to buy Concentrate only from the
Company or Authorized Suppliers. 

  

	 	3.	The Bottler will use the Concentrate exclusively for the preparation of the Syrup and the preparation and packaging of the Beverage as prescribed from time to time by the Company. The Bottler undertakes not to sell
or resell the Concentrate or the Syrup, nor permit the same to fall into the hands of third parties, without the prior written consent of the Company or CCJC. 

  

	 	4.	The Company retains the sole and exclusive right at any time to determine the formula, composition or ingredients for the Concentrate, the Syrup and the Beverage. 

 

	 	5.	Except as may be provided herein and for the term of this Agreement, the Company will refrain from selling or distributing, or from causing the sale or distribution of, the Beverage in the Territory in Approved
Containers. The Company reserves the rights, however, to prepare and package the Beverage in any container in the Territory for sale outside the Territory, and to prepare, package, distribute or sell, or authorize third parties to prepare,
package, distribute or sell, the Beverage in the Territory in any container other than an Approved Container. 

  

	II.	OBLIGATIONS OF THE BOTTLER RELATIVE TO MARKETING, PLANNING AND REPORTING 

  

	 	6.	The Bottler covenants and agrees: 

  

	 	(a)	to make every effort and employ all practicable and approved means to promote, develop and exploit the full potential of the business of preparing, packaging, distributing, marketing and selling the Beverage throughout
the Territory by creating, stimulating and expanding continuously the future demand for the Beverage and by satisfying fully and in all respects the current demand therefor; 

 

	 	(b)	to prepare, package, distribute and sell such quantities of the Beverage as shall in all respects satisfy fully every demand for the Beverage within the Territory; however, with the prior written consent of the
Company, the Bottler may purchase the Beverage in Approved Containers from parties designated in writing by the Company, for resale by the Bottler within the Territory;

  
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	 	(c)	to invest all the capital and to obtain and expend all the funds required for the organization, installation, operation, maintenance and replacement within the Territory of such manufacturing, warehousing, marketing,
distribution, delivery, transportation and other facilities and equipment as shall be necessary for the Bottler to comply with its obligations under this Agreement; 

 

	 	(d)	to provide competent and well-trained management and recruit, train, maintain and direct all personnel required, sufficient in every respect to perform all of the obligations of
the Bottler under this Agreement; 

  

	 	(e)	to deliver to the Company once in each calendar year a program or plan in writing acceptable to the Company as to form and substance and in accordance with the Bottler’s obligations under this Agreement, showing in
detail the activities of the Bottler, including, but not limited to, the marketing, management, financial, investment, manufacturing, promotional and advertising plans contemplated for the ensuing twelve-month
period or such other period as the Company may prescribe, to prosecute such program or plan diligently, and to deliver to the Company upon its request written reports of the progress of the work in an acceptable form; 

 

	 	(f)	to report to the Company accurate and current information on production (including the inventory status), distribution and sales of the Beverage, as well as the Bottler’s business operations and facilities relating
to the production, distribution or sale of the Beverage, at such intervals, in such detail and in such form as may be requested by the Company; and 

  

	 	(g)	to maintain accurate books, accounts and records and to provide to the Company such financial, accounting and other information as the Company may request to enable the Company to determine whether the Bottler is
maintaining the consolidated financial capacity reasonably necessary to perform its obligations under this Agreement and in recognition of the Company’s interest in maintaining, promoting and safeguarding the overall performance, efficiency and
integrity of the bottling, distribution and sales system. 

  

	 	7.	The Bottler must, for its own account, budget and expend such funds for advertising, marketing and promoting the Beverage as may be reasonably required by the Company to create, stimulate and sustain the demand for the
Beverage in the Territory, provided that the Bottler shall submit all advertising, marketing and promotional projects relating to the Trade Marks or the Beverage to the Company for its prior approval, and shall use, publish, maintain or distribute
only such advertising, marketing or promotional material relating to the Trade Marks or the Beverage as the Company shall approve and authorize. The Company and/or CCJC may agree from time to time and subject to such terms and conditions as it or
they shall stipulate in each case to contribute financially to the Bottler’s marketing programs. The Company and/or CCJC may also undertake, at its or their own expense and independently from the Bottler, any additional advertising or sales
promotion activities in the Territory it or they deem(s) useful or appropriate. 

 8. 

 

	 	(a)	The Bottler recognizes that the Company and/or CCJC has entered into or may enter into agreements similar to this Agreement with other parties outside the Territory and accepts the limitations such agreements may
reasonably impose on the Bottler in the conduct of its business under this Agreement. The Bottler further agrees to conduct its business in such a manner so as to avoid conflicts with such other parties, and, in the event of disputes
nevertheless arising with such other parties, to make every reasonable effort to settle them amicably. 

  

	 	(b)	The Bottler will not oppose any additional actions the adoption of which are considered by the Company and/or CCJC as necessary and justified in order to protect and improve the manufacturing, sales and/or distribution
system for the Beverage, including, but not limited to, those actions which might be adopted concerning the supply of large and/or special customers whose field of activity transcends the boundaries of the Territory, even if such actions should
limit the Bottler’s rights under this Agreement. 

  
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 9. 
  

	 	(a)	The Bottler, recognizing the important benefit to itself and all the other parties referred to in Clause 8(a) above, of a uniform external appearance of the distribution and other equipment and materials used under this
Agreement, agrees to accept and apply the standards adopted and issued from time to time by the Company for the design and decoration of trucks and other delivery vehicles, cases, cartons, coolers, vending machines and other materials and equipment
used in the distribution and sale of the Beverage. 

  

	 	(b)	The Bottler further agrees to maintain and to replace such equipment at such intervals as are reasonably necessary. 

  

	 	10.	The Bottler acknowledges and agrees that the broadest possible direct distribution and sale of the Beverage to retail outlets and final consumers in the Territory is an essential element in satisfying fully the demand
for the Beverage pursuant to this Agreement. Notwithstanding the recognized advantages of direct distribution, the Bottler shall be authorized to distribute and sell the Beverage to wholesalers in the Territory who sell only to retail outlets
in the Territory. Any other methods of distribution shall be subject to the prior written approval of the Company. 

 11.

  

	 	(a)	Except as approved in writing by the Company, the Bottler shall prevent the sale or distribution in any manner whatsoever of the Beverage outside the Territory.

 

	 	(b)	Without prejudice to Clause 11(a) above, in the event any of the Beverage prepared, packaged, distributed or sold by the Bottler is found in the territory of another authorized bottler or authorized distributor
(hereinafter referred to as the “Injured Bottler”), then, in addition to all other remedies available to the Company: 

  

	 	(1)	the Company may, in its sole discretion, cancel forthwith the approval for the container(s) of the type which were found in the Injured Bottler’s territory;

 

	 	(2)	the Company may charge the Bottler an amount of compensation for the Beverage found in the Injured Bottler’s territory, to include all lost profits, expenses and other costs incurred by the Company and the Injured
Bottler; and 

  

	 	(3)	the Company or CCJC may purchase any of the Beverage prepared, packaged, distributed or sold by the Bottler which is found in the Injured Bottler’s territory, and the Bottler shall, in addition to any other
obligation it may have under this Agreement, reimburse the Company, or CCJC as the case may be, for the Company’s, or CCJC’s, cost of purchasing, transporting and/or destroying such Beverage.

 

	 	(c)	In the event the Beverage prepared, packaged, distributed or sold by the Bottler is found in the territory of an Injured Bottler, the Bottler shall make available to representatives of the Company all sales agreements
and other records relating to the Beverage and assist the Company and CCJC in all investigations relating to the sale and distribution of the Beverage outside the Territory. 

 

	 	(d)	The Bottler shall immediately inform the Company if at any time any solicitation or offer to purchase the Beverage is made to the Bottler by a third party which the Bottler knows or has reason to believe or suspect
would result in the Beverage being marketed, sold, resold, distributed or redistributed outside the Territory in breach of this Agreement. 

  

	III.	OBLIGATIONS OF BOTTLER RELATIVE TO THE TRADE MARKS 

  

	 	12.	The Bottler will at all times recognize the validity and ownership of the Trade Marks by the Company and will not at any time put in issue the validity and ownership of the Trade Marks. 

 

	 	13.	 Nothing herein shall give the Bottler any interest in the Trade Marks or the goodwill attaching thereto or in any
label, design, container or other visual representations thereof, or used in connection 

  
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therewith; and the Bottler acknowledges and agrees that all rights and interest created through such usage of the Trade Marks, labels, designs, containers or other visual representations shall
inure to the benefit and be the property of the Company. The Company and the Bottler agree and understand that the Bottler under this Agreement is obligated to use said Trade Marks, labels, designs, containers or other visual representations
thereof, in connection with the preparation, packaging, distribution and sale of the Beverage in Approved Containers without the payment of any fee, said use to be in such manner and with the result that all goodwill relating to the same shall
accrue to the Company as the source and origin of such Beverage, and the Company shall be absolutely entitled to determine in every instance the manner of presentation and such other steps necessary or desirable to secure compliance with this Clause
13. 

  

	 	14.	The Bottler shall not adopt or use any name, corporate name, trading name, title of establishment or other commercial designation which includes the words “Coca-Cola”,
“Coca”, “Cola”, “Coke”, or any of them, or any name that is confusingly similar to any of them, or any graphic or visual representation of the Trade Marks or any other trade mark or intellectual property owned by the
Company, without the prior written consent of the Company.

  

	 	15.	The Bottler covenants and agrees during the term of this Agreement and in accordance with applicable laws: 

  

	 	(a)	not to manufacture, prepare, package, distribute, sell, deal in or otherwise be concerned with any product associated with any trade dress or any container that is an imitation of a trade dress or container in which the
Company claims a proprietary interest or which is likely to be confused with or cause confusion or be perceived by consumers as confusingly similar to or be passed off as such trade dress or container; 

 

	 	(b)	not to manufacture, prepare, package, distribute, sell, deal in or otherwise be concerned with any product associated with any trade mark or other designation which is an imitation or infringement of any of the Trade
Marks or is likely to cause passing-off of any product which is intended to lead the public to believe that it originates with the Company and/or its subsidiaries and affiliates because of the Bottler’s
association with the business of manufacturing, preparing, packaging, distributing and selling the Beverage; without in any way limiting the generality of the foregoing, it is hereby expressly understood and stipulated that use of the word
“Coca” or local language or phonetic equivalent in any form or fashion, or any word graphically or phonetically similar thereto or in imitation thereof, on any product other than that of the Company would constitute an infringement of the
trade mark “Coca-Cola” or be likely to cause passing-off; 

  

	 	(c)	not to manufacture, prepare, package, distribute, sell, deal in or otherwise be concerned with any non-alcoholic beverage products other than those prepared, packaged, distributed
or sold by the Bottler under authority of the Company, unless prior written consent from the Company is obtained; 

  

	 	(d)	not to use delivery vehicles, cases, cartons, coolers, vending machines and other equipment bearing the Trade Marks for the distribution and sale of any products which are not identified by the Trade Marks without the
prior written consent of the Company; 

  

	 	(e)	not to manufacture, prepare, package, distribute, sell, deal in or otherwise be concerned with any other concentrate, beverage base, syrup, or beverage which is likely to be confused with or passed off for the
Concentrate, the Syrup or the Beverage; 

  

	 	(f)	not to manufacture, prepare, package, distribute, sell, deal in or otherwise be concerned with (i) any beverage put out under the name “cola” (whether alone or in conjunction with any other word or words)
or any phonetic rendering of such a word, or (ii) any beverage put out under the name “cola” or otherwise which is an imitation of the Concentrate, the Syrup or the Beverage or is likely to be substituted therefor during the term of this
Agreement and, in recognition of the valuable rights granted by the Company to the Bottler pursuant to this Agreement for an additional period of two (2) years thereafter; and 

  
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	 	(g)	not to acquire or hold, directly or indirectly, any ownership interest in, or enter into any contract or arrangement with respect to the management or control of any person or legal entity, within or outside of the
Territory, that engages in any of the activities prohibited under this Clause 15. 

 The covenants herein contained apply not
only to the activities with which the Bottler may be directly concerned, but also to activities with which the Bottler may be indirectly concerned through ownership, control, management, partnership, agreement or otherwise, and whether located
within or outside of the Territory. 
  

	 	16.	It is understood and agreed among the parties that in the event that either: 

  

	 	(a)	a third party which is in the opinion of the Company directly or indirectly through ownership, control, management or otherwise, concerned with the manufacture, preparation, packaging distribution or sale of any product
specified in Clause 15 hereof shall acquire or otherwise obtain control or any direct or indirect influence on the management of the Bottler; or 

  

	 	(b)	any person, firm or company having majority ownership or direct or indirect control of the Bottler or who is directly or indirectly controlled either by the Bottler or by any third party which has control or any direct
or indirect influence in the opinion of the Company on the management of the Bottler shall engage in the preparation, packaging, distribution or sale of any products specified in Clause 15 hereof; 

then the Company shall have the right to terminate this Agreement forthwith without liability for damages unless the third party making such
acquisition referred to in sub-clause (a) hereof or the person, firm or company referred to in subclause (b) hereof shall, on being notified in writing by the Company of its intention to terminate as
aforesaid, agrees to discontinue, and shall in fact discontinue, the manufacture, preparation, packaging, distribution or sale of such product(s) within a reasonable period not exceeding six (6) months from the date of notification. 

 

	IV.	OBLIGATIONS OF BOTTLER RELATIVE TO THE PREPARATION AND PACKAGING OF THE BEVERAGE 

 17. 

 

	 	(a)	The Bottler covenants and agrees to use only the Concentrate in preparing the Syrup and the Syrup only for preparing and packaging the Beverage, in strict adherence to and compliance with the written instructions issued
to the Bottler from time to time by the Company. The Bottler further covenants and agrees that, in preparing, packaging and distributing the Beverage, the Bottler shall at all times conform to the standards including quality, hygienic, environmental
and otherwise, established in writing from time to time by the Company and comply with all applicable legal requirements. 

  

	 	(b)	The Bottler, recognizing the importance of identifying the source of manufacture of the Beverage in the market, agrees to use identification codes on all packaging materials for the Beverage, including Approved
Containers and non-returnable cases. The Bottler further agrees to install, maintain and use the necessary machinery and equipment required for the application of such identification codes. The Company or
CCJC shall provide the Bottler, from time to time, with necessary instructions in writing regarding the forms of the identification codes to be used by the Bottler in that connection, and the production and sales records to be maintained by the
Bottler.

  

	 	(c)	 In the event the Company or CCJC determines or becomes aware of the existence of any quality or technical
problems relating to the Beverage or Approved Containers in respect of the Beverage, the Company may require the Bottler to take all necessary action to recall all of the Beverage or withdraw immediately any such Beverage from the market or the
trade, as the case may be. The Company shall notify the Bottler by telephone, fax, e-mail or any other form of immediate communication with written confirmed receipt, of the decision by the Company to require the

  
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Bottler to recall such Beverage or withdraw such Beverage from the market or trade, and the Bottler shall, upon receipt of such notice, immediately cease distribution of such Beverage and take
such other actions as may be required by the Company in connection with the recall of such Beverage or withdrawal of such Beverage from the market or trade. 

  

	 	(d)	In the event the Bottler determines or becomes aware of the existence of quality or technical problems relating to the Beverage or Approved Containers in respect of the Beverage, then the Bottler shall immediately
notify the Company by telephone, fax, e-mail or any other form of immediate communication with written confirmed receipt. This notification shall include: (1) the identity and quantities of the Beverage involved, including the specific Approved
Containers, (2) coding data and (3) all other relevant data that will assist in tracing such Beverage. 

 The Bottler
shall permit the Company, its officers, agents or designees, at all times to enter and inspect the facilities, equipment and methods used by the Bottler, whether directly or incidentally, in or for the preparation, packaging, storage and handling of
the Beverage to ascertain whether the Bottler is complying with the terms of this Agreement, including, but not limited to Clauses 17 and 21. The Bottler also agrees to provide the Company with all the information regarding Bottler’s
compliance with the terms of this Agreement, including, but not limited to, Clauses 17 and 21, as the Company may request from time to time. 
  

	 	18.	The Bottler shall submit to the Company, at the Bottler’s expense, samples of the Syrup, the Beverage and of materials used in the preparation of the Syrup and the Beverage, in accordance with instructions that the
Company may give from time to time. 

 19. 
  

	 	(a)	In the packaging, distribution and sale of the Beverage, the Bottler shall use only such Approved Containers and closures, cases, cartons, labels and other packaging materials approved from time to time by the Company,
and the Bottler shall purchase such items only from manufacturers who have been authorized in writing by the Company to manufacture the items to be used in connection with the Trade Marks and the Beverage. The Company shall use its best efforts
to approve two or more manufacturers of such items, it being understood that said approved manufacturers may be located within or outside of the Territory. 

  

	 	(b)	The Bottler shall inspect Approved Containers and closures, cases, cartons, labels and other packaging materials to be used in connection with the Beverage and shall use only those items which the Bottler has determined
comply with both the standards established by applicable laws in the Territory and the standards and specifications prescribed by the Company. The Bottler shall assume independent responsibility in connection with the use of such Approved
Containers, closures, cases, cartons, labels and other packaging materials which the Bottler has determined conform to such standards.

  

	 	(c)	The Bottler shall maintain at all times a sufficient stock of Approved Containers, closures, cases, cartons, labels and other packaging materials to satisfy fully the demand for the Beverage in the Territory.

 20. 
  

	 	(a)	The Bottler recognizes that increases in the demand for the Beverage, as well as changes in the Approved Containers, may from time to time require modifications or other changes in respect of its existing manufacturing,
packaging, delivery or vending equipment or require the purchase of additional manufacturing, packaging, delivery or vending equipment. The Bottler agrees to make such modifications to existing equipment and to purchase and install such
additional equipment as necessary with sufficient lead time to enable the introduction of new Approved Containers and the preparation and packaging of the Beverage in accordance with the continuing obligations of the Bottler to develop, stimulate
and satisfy fully every demand for the Beverage in the Territory.

  
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	 	(b)	In the event the Bottler uses refillable Approved Containers in the preparation, packaging, distribution and sale of the Beverage, the Bottler agrees to invest the necessary capital and to appropriate and expend such
funds as may be required from time to time to establish and maintain an adequate inventory of refillable Approved Containers. In order to ensure the continuing quality and appearance of said inventory of refillable Approved Containers, the
Bottler further agrees to replace all or part of the inventory of refillable Approved Containers as may be reasonably necessary and in accordance with the obligations of the Bottler pursuant to this Agreement. 

 

	 	(c)	The Bottler shall not use or permit the use of the Approved Containers, closures, cases, cartons, labels and other packaging materials referred to in this Agreement for any purpose, except in connection with the
Beverage and shall not refill or otherwise reuse any non-refillable Approved Containers that have been previously used. 

21. 
  

	 	(a)	The Bottler shall be solely responsible in carrying out its obligations herein for compliance with all laws, statutes, regulations, by-laws and other legal requirements issued by government or local authorities and
applicable in the Territory, and shall inform the Company forthwith of any provision thereof which would prevent or limit in any way strict compliance by the Bottler with its obligations herein. 

 

	 	(b)	Without limiting the generality of the foregoing, the Bottler covenants and agrees to comply at all times with (i) all anti-bribery, environmental, health and safety laws, regulations, and other legal requirements
issued by government or local authorities and applicable in the Territory and (ii) the Company’s environmental and/or safety management standards or program as issued from time to time in writing. 

 

	V.	CONDITIONS OF PURCHASE AND SALE 

 22. 

 

	 	(a)	The Company reserves the right, by giving written notice to the Bottler, to establish and to revise from time to time and at any time, in its sole discretion, the price of the Concentrate, the Authorized Supplier, the
supply point and alternate supply points for the Concentrate, the conditions of shipment and payment, and the currency or currencies acceptable to the Company or the Authorized Suppliers. Without prejudice to the foregoing, for so long as the
Company has designated and authorized CCJC to supply the Concentrate to the Bottler, CCJC shall be authorized, by giving written notice to the Bottler, to establish and to revise from time to time and at any time, in its sole discretion, the price
of the Concentrate, the conditions of shipment and payment, and the currency and currencies acceptable to CCJC. 

  

	 	(b)	If the Bottler is unwilling to pay the revised price in respect of the Concentrate, then the Bottler shall so notify the Company or CCJC, as the case may be, in writing within thirty (30) days from receipt of the
written notice from the Company or CCJC, as the case may be, revising the aforesaid price. In such event, this Agreement shall terminate automatically without liability by either party for damages three (3) calendar months after receipt of the
Bottler’s notification. 

  

	 	(c)	Any failure on the part of the Bottler to notify the Company or CCJC, as the case may be, in respect of the revised price of the Concentrate pursuant to subclause (b) hereof shall be deemed to be acceptance by the
Bottler of the revised price. 

  

	 	(d)	The Company reserves the right, to the extent permitted by the law applicable in the Territory, to establish and to revise, by giving written notice to the Bottler, recommended prices at which the Beverage in Approved
Containers may be sold by the Bottler to wholesalers and retailers and the recommended retail prices for the Beverage.

  
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	 	(e)	The Bottler undertakes to collect from or charge to retail or wholesale outlets, as applicable, for each refillable Approved Container and each returnable case delivered to retail or wholesale outlets, such deposits as
the Company and/or CCJC may determine from time to time by giving written notice to the Bottler, and to make all reasonably diligent efforts to recover all empty refillable Approved Containers and cases and, upon recovery, to refund or to credit the
deposits for said refillable Approved Containers and returnable cases returned undamaged and in good condition. 

  

	VI.	DURATION AND TERMINATION OF AGREEMENT 

 23. 

 

	 	(a)	This Agreement shall expire, without notice, on March 31, 2024 unless it has been earlier terminated as provided herein. It is recognized and agreed among the parties hereto that the Bottler shall have no right to
claim a tacit renewal of this Agreement. 

  

	 	(b)	If the Bottler has fully complied with all the terms, covenants, conditions and stipulations of this Agreement throughout its term, and the Bottler is capable of the continued promotion, development and exploitation of
the full potential of the business of the preparation, packaging, distribution and sale of the Beverage, the Bottler may request an extension of this Agreement for an additional term of ten (10) year(s). The Bottler may request such extension by
giving written notice to the Company at least six (6) months but not more than twelve (12) months prior to the expiration date of this Agreement. The request by the Bottler for such extension shall be supported by such documentation as the
Company may request, including documentation relating to the Bottler’s compliance with the performance obligations under this Agreement and supporting the continued capability of the Bottler to develop, stimulate and satisfy fully the demand
for the Beverage within the Territory. If the Bottler has, in the sole discretion of the Company, satisfied the conditions for the extension of this Agreement, then the Company may, by written notice, agree to extend this Agreement for such
additional term or such lesser period as the Company may determine. 

  

	 	(c)	At the expiration of any such additional term, this Agreement shall expire finally without further notice, and the Bottler shall have no right to claim a tacit renewal of this Agreement. 

24. 
  

	 	(a)	This Agreement may be terminated by the Company or the Bottler forthwith and without liability for damages by written notice given by the party entitled to terminate to the other party: 

 

	 	(1)	if the Company, the Authorized Suppliers or the Bottler cannot legally obtain foreign exchange to remit abroad in payment of imports of the Concentrate or the ingredients or materials necessary for the manufacture of
the Concentrate, the Syrup or the Beverage; or 

  

	 	(2)	if any part of this Agreement ceases to be in conformity with the laws or regulations applicable in the Territory and, as a result thereof, or as a result of any other laws affecting this Agreement, any one of the
material stipulations herein cannot be legally performed or the Syrup cannot be prepared, or the Beverage cannot be prepared or sold in accordance with the instructions issued by the Company pursuant to Clause 17 above, or if the Concentrate cannot
be manufactured or sold in accordance with the Company’s formula or the standards prescribed by it. 

  

	 	(b)	This Agreement may be terminated forthwith by the Company without liability for damages: 

  

	 	(1)	 if a petition in bankruptcy, corporate reorganization proceedings, civil rehabilitation or any similar
proceedings is filed against or on behalf of the Bottler, or if the Bottler passes a resolution for winding up or liquidation, or if a winding up, liquidation or judicial 

  
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management order is made against the Bottler, or if a receiver is appointed to manage the business of the Bottler, or if the Bottler enters into any judicial or voluntary scheme of composition
with its creditors or concludes any similar arrangements with them or makes an assignment for the benefit of creditors; or 

  

	 	(2)	if a petition is filed for attachment, provisional attachment, provisional disposition or auction with respect to Bottler’s assets and such petition has continued to be effective for more than thirty (30) days, or
if the Bottler receives a disposition for failure to pay taxes, or if the notes or checks drawn or accepted by the Bottler are dishonored, or if the Bottler suspends its payments to creditors generally or becomes insolvent; or 

 

	 	(3)	in the event of the Bottler’s dissolution, nationalization or expropriation, or in the event of the confiscation of the production or distribution assets of the Bottler. 

25. 
  

	 	(a)	This Agreement may also be terminated by the Company and CCJC or by the Bottler without liability for damages if the other party or parties fails or fail to observe any one or more of the terms, covenants or conditions
of this Agreement, and fails to remedy such default(s) within sixty (60) days after such party has been given written notice of such default(s).

  

	 	(b)	In addition to all other remedies to which the Company may be entitled hereunder, if at any time the Bottler fails to follow the instructions or to maintain the standards prescribed by the Company or required by
applicable laws in the Territory for the preparation and packaging of the Syrup or the Beverage, the Company shall have the right to prohibit the production of the Syrup or the Beverage until the default has been corrected to the Company’s
satisfaction, and the Company may demand the suspension of distribution and delivery of the Beverage and further demand the recall or withdrawal from the market or trade, at the Bottler’s expense, of the Beverage not in conformity with or not
manufactured in conformity with such instructions, standards or requirements, and the Bottler shall promptly comply with such prohibition or demand. During the period of such prohibition of production, the Company shall be entitled to suspend
deliveries of the Concentrate to the Bottler and to supply the Beverage or to arrange for others to supply the Beverage in the Territory. No prohibition or demand shall be deemed a waiver of the rights of the Company to terminate this Agreement
pursuant to this Clause 25. 

  

	 	26.	Upon the expiration or earlier termination of this Agreement: 

  

	 	(a)	the Bottler shall not thereafter prepare, package, distribute, or sell the Beverage or make any use of the Trade Marks, Approved Containers, closures, cases, cartons, labels, other packaging material or advertising,
marketing or promotional material used or which are intended for use by the Bottler solely in connection with the preparation, packaging, distribution and sale of the Beverage; 

 

	 	(b)	the Bottler shall forthwith eliminate all references to the Company, CCJC, the Beverage and the Trade Marks from the premises, delivery vehicles, vending machines, coolers and other equipment of the Bottler and from all
business stationery and all written, graphic, electromagnetic, digital or other advertising, marketing or promotional material used or maintained by the Bottler, and the Bottler shall not thereafter hold forth in any manner whatsoever that the
Bottler has any connection with the Company, CCJC, the Beverage or the Trade Marks; 

  

	 	(c)	 the Bottler shall forthwith deliver to the Company, CCJC or a third party, in accordance with such instructions
as the Company shall give, all of the Concentrate, Beverage in Approved Containers, usable Approved Containers bearing the Trade Marks or any of them, closures, cases, cartons, labels and other packaging materials bearing the Trade Marks and
advertising material for the Beverage still in the Bottler’s possession or under its control, and the Company shall, upon delivery thereof pursuant to such instructions, pay to the Bottler a sum equal to the reasonable

  
 10 

	 	
market value of such supplies or materials, provided that the Company will accept and pay for only such supplies or materials as are in first-class and
usable condition; and provided further that all Approved Containers, closures, cases, cartons, labels and other packaging materials and advertising materials bearing the name of the Bottler and any such supplies and materials which are unfit for use
according to the Company’s standards shall be destroyed by the Bottler without cost to the Company or CCJC; and provided further that, if this Agreement is terminated in accordance with the provisions of Clauses 16, 22(b), 24(a), 25 or 27 or as
a result of any of the contingencies provided in Clause 30 (including termination by operation of law), or if the Agreement is terminated by the Bottler for any reason other than in accordance with or as a result of the operation of Clause 25, the
Company shall have the option, but no obligation, to purchase from the Bottler the supplies and materials referred to above; and 

  

	 	(d)	all rights and obligations hereunder, whether specifically set out or whether accrued or accruing by use, conduct or otherwise, shall expire, cease and end, excepting all provisions concerning the obligations of the
Bottler as set forth in Clauses 11(b)(2) and (b)(3) and 12, 13, 14, 15(f), 26, 29(b), 31, 32, 33(a), 33(c) and 33(d), all of which shall continue in full force and effect, provided always that this provision shall not affect any rights the Company
or CCJC may have against the Bottler in respect of any claim for nonpayment of any debt or account owed by the Bottler to the Company or its Authorized Suppliers. 

 

	VII.	OWNERSHIP AND CONTROL OF THE BOTTLER 

  

	 	27.	It is recognized and acknowledged among the parties hereto that the Company has a vested and legitimate interest in maintaining, promoting and safeguarding the overall performance, efficiency and integrity of the
Company’s international bottling, distribution and sales system. It is further recognized and acknowledged among the parties hereto that this Agreement has been entered into by the Company intuitu personae and in reliance upon the
identity, character and integrity of the owners, controlling parties and managers of the Bottler, and the Bottler warrants having made to the Company prior to the execution hereof a full and complete disclosure of the owners and of any third parties
having a right to, or power of, control or management of the Bottler. It is therefore agreed among the parties hereto that notwithstanding the provisions of Clause 16 or any other provision of this Clause 27, in the event of any change, due to
any cause, of the real persons or legal entities having direct or indirect ownership or control of the Bottler, including any changes of the share-owner composition of such entities, the Company, in its sole discretion, may terminate this Agreement
forthwith and without liability for damages. The Bottler, therefore, covenants and agrees: 

  

	 	(a)	not to assign, transfer, pledge or in any way encumber this Agreement or any interest herein or rights hereunder, in whole or in part, to any third party or parties without the prior written consent of the Company;

  

	 	(b)	not to delegate performance of this Agreement, in whole or in part, to any third party or parties without the prior written consent of the Company or CCJC, provided, however, that consent to a delegation of the
preparation and packaging of the Beverage hereunder to a third-party subcontractor maybe granted by (i) the Company executing, together with the Bottler and the relevant third-party subcontractor, the then–applicable standard Delegation
Authorization Agreement (in the case where such third party subcontractor is a subsidiary of the Bottler) or by CCJC executing, together with the Bottler and the relevant third-party subcontractor, the then–applicable standard Contract Packing
Agreement (in case where such third party subcontractor is not a subsidiary of the Bottler), and (ii) the Bottler having obtained the prior written confirmation from the Company and/or CCJC approving such third-party subcontractor’s
quality-control, environmental, safety and other standards (and any such other standards as the Company and/or CCJC may at such time and in their sole discretion deem appropriate to require their approval of); and provided further that
such delegation shall not in any manner relieve the Bottler from any of its duties and/or obligations under this Agreement; 

  
 11 

	 	(c)	to notify the Company promptly in the event of or upon obtaining knowledge of any third party action which may or will result in any change in the ownership or control of the Bottler; 

 

	 	(d)	to make available from time to time and at the request of the Company complete records of current ownership of the Bottler and full information concerning any third party or third parties by whom it is controlled,
directly or indirectly;

  

	 	(e)	to the extent the Bottler has any legal control over changes in the ownership or control of the Bottler, not to initiate or implement, consent to or acquiesce in any such change without the prior written consent of the
Company; and 

  

	 	(f)	if the Bottler is organized as a partnership, not to change the composition of such partnership by the inclusion of any new partners or the release of existing partners without the prior written consent of the Company.

 In addition to the foregoing provisions of this Clause 27, if a proposed change in ownership or control of the Bottler
involves a direct or indirect transfer to or acquisition of ownership or control of the Bottler, in whole or in part, by a person or entity authorized by the Company to manufacture, sell, distribute or otherwise deal in any beverage products and/or
any trade marks of the Company (the “Acquiror Bottler”), the Company may request any and all information it considers relevant from both the Bottler and the Acquiror Bottler in order to make its determination as to whether to consent to
such change. In any such circumstances, the parties hereto, recognizing and acknowledging the vested and legitimate interest of the Company in maintaining, promoting and safeguarding the overall performance, efficiency and integrity of the
Company’s international bottling, distribution and sales system, expressly agree that the Company may consider all and any factors, and apply any criteria that it considers relevant in making such determination. 

It is further recognized and agreed among the parties hereto that the Company, in its sole discretion, may withhold consent to any proposed
change in ownership or other transaction contemplated in this Clause 27, or may consent subject to such conditions as the Company, in its sole discretion, may determine. The parties hereto expressly stipulate and agree that any violation by the
Bottler of the foregoing covenants contained in this Clause 27 shall entitle the Company to terminate this Agreement forthwith without liability for damages; and, furthermore, in view of the personal nature of this Agreement, that the Company shall
have the right to terminate this Agreement without liability for damages if any other third party or third parties should obtain any direct or indirect interest in the ownership or control of the Bottler, even when the Bottler had no means to
prevent such a change, if, in the opinion of the Company, such change either enables such third party or third parties to exercise any influence over the management of the Bottler or materially alters the ability of the Bottler to comply fully with
the terms, obligations and conditions of this Agreement. 
  

	 	28.	The Bottler shall, prior to the issue, offer, sale, transfer, trade or exchange of any of its shares of stock or other evidence of ownership, its bonds, debentures or other evidence of indebtedness, or the promotion of
the sale of the above, or stimulation or solicitation of the purchase or an offer to sell thereof, obtain the written consent of the Company or CCJC, as the case may be, whenever the Bottler uses in this connection the name of the Company or CCJC or
the Trade Marks or any description of the business relationship with the Company or CCJC in any prospectus, advertisement or other sales efforts. The Bottler shall not use the name of the Company or CCJC or the Trade Marks or any description of
the business relationship with the Company or CCJC in any prospectus or advertisement used in connection with the Bottler’s acquisition of any shares or other evidence of ownership in a third party without the prior written approval of the
Company or CCJC, as the case may be. 

  
 12 

	VIII.	GENERAL PROVISIONS 

 29. 

 

	 	(a)	The Company may assign any of its rights and delegate all or any of its duties or obligations under this Agreement to one or more of its subsidiaries or related companies provided, however, that any such delegation
shall not relieve the Company from any of its contractual obligations under this Agreement. In addition, the Company, in its sole discretion, may through written notice to the Bottler appoint a third party as its representative to ensure that
the Bottler carries out its obligations under this Agreement, with full powers to oversee the Bottler’s performance and to require from the Bottler its compliance with all the terms and conditions of this Agreement. 

 

	 	(b)	For the convenience of communication among the parties, the Company, CCJC and the Bottler agree that CCJC may issue any communications to be made by the Company to the Bottler under or in relation to this Agreement (as
may be determined by the Company from time to time) and the Bottler shall receive the same, and that the Bottler shall deliver to CCJC (on behalf of the Company) any and all communications to be made by the Bottler to the Company under or in
relation to this Agreement. Said communications shall include, without limitation, those in respect of instructions, prescriptions, standards and requirements set by the Company, consents, approvals and authorizations by the Company and
requests by the Bottler therefor, notifications, requests for, provisions of and/or receipts of information, samples, materials and/or actions, or notices of termination or requests for extensions of this Agreement and/or any related agreements
thereto, and consultations of any kind. 

  

	 	30.	Neither the Company, CCJC nor the Bottler shall be liable for failure to perform any of their respective obligations hereunder when such failure is caused by or results from: 

 

	 	(a)	strike, blacklisting, boycott or sanctions imposed by a sovereign nation or supra-national organization of sovereign nations, however incurred; or 

 

	 	(b)	act of God, force majeure, public enemies, authority of law and/or legislative or administrative measures (including the withdrawal of any government authorization required by any of the parties to carry out the terms
of this Agreement), embargo, quarantine, riot, insurrection, a declared or undeclared war, state of war or belligerency or hazard or danger incident thereto; or 

  

	 	(c)	any other cause whatsoever beyond their respective control. 

 In the event the Bottler is unable
to perform its obligations as a consequence of any of the contingencies set forth in this Clause 30, and for the duration of such inability, the Company, CCJC and Authorized Suppliers shall be relieved of their respective obligations under Clauses 2
and 5; and provided that, if any such failure by either party shall persist for a period of six (6) months or more, any party hereto may terminate this Agreement without liability for damages. 

31. 
  

	 	(a)	The Company reserves the sole and exclusive right to institute any civil, administrative or criminal proceeding or action, and generally to take or seek any available legal remedy it deems desirable, for the protection
of its reputation, Trade Marks, and other intellectual property rights, as well as for the protection of the Concentrate, the Syrup and the Beverage, and to defend any action affecting these matters. At the request of the Company, CCJC and the
Bottler will render assistance in any such action. The Bottler shall not have any claim against the Company or CCJC as a result of such proceedings or action or for any failure to institute or defend such proceedings or action. The Bottler
shall promptly notify the Company of any litigation or proceedings instituted or threatened affecting these matters. The Bottler shall not institute any legal or administrative proceedings against any third party which may affect the interests
of the Company and/or CCJC without the prior written consent of the Company and/or CCJC, as the case may be. 

  

	 	(b)	 The Company has the sole and exclusive right and responsibility to initiate and defend all proceedings and
actions relating to the Trade Marks. The Company may initiate or defend any 

  
 13 

	 	
such proceedings or actions in its own name and/or in the name of CCJC or require the Bottler to institute or defend such proceedings or actions either in its own name or in the joint names of
the Bottler and the Company and/or CCJC. 

 32. 
  

	 	(a)	The Bottler agrees to consult with the Company on all product liability claims, proceedings or actions brought against the Bottler in connection with the Beverage or Approved Containers and to take such action with
respect to the defense of any such claim or lawsuit as the Company may reasonably request in order to protect the interests of the Company in the Beverage, the Approved Containers or the goodwill associated with the Trade Marks. 

 

	 	(b)	The Bottler shall indemnify and hold harmless the Company, CCJC, their affiliates and their respective officers, directors and employees from and against all costs, expenses, damages, claims, obligations and liabilities
whatsoever arising from facts or circumstances not attributable to the Company or CCJC including, but not limited to, all costs and expenses incurred in settling or compromising any of the same arising out of the preparation, packaging,
distribution, sale or promotion of the Beverage by the Bottler, including, but not limited to, all costs arising out of the acts or defaults, whether negligent or not, of the Bottler, any third party to whom the Bottler may have delegated or
sub-contracted the preparation and packaging of the Beverages, and any distributor, supplier and /or wholesaler. 

  

	 	(c)	The Bottler shall obtain and maintain a policy of insurance with insurance carriers satisfactory to the Company giving full and comprehensive coverage both as to amount and risks covered in respect of matters referred
to in subclause (b) above (including the indemnity contained therein) and shall on request produce evidence satisfactory to the Company of the existence of such insurance. Compliance with this Clause 32(c) shall not limit or relieve the Bottler
from its obligations under Clause 32(b) hereof. 

  

	 	33.	The Bottler covenants and agrees: 

  

	 	(a)	that it will make no representations or disclosures to public or government authorities or to any other third party, relating to the Concentrate, the Syrup or the Beverage without the prior written consent of the
Company; 

  

	 	(b)	in the event that the Bottler is publicly listed or traded, it will disclose to the Company any financial or other information relating to the performance or prospects of the Bottler at the same time as the Bottler is
required to disclose such information pursuant to the regulations of the stock exchange or the securities or corporations law applicable to the Bottler; 

  

	 	(c)	that it will at all times, both during the continuance and after termination of this Agreement, keep strictly confidential all secret and confidential information including, without limiting the generality of the
foregoing, mixing instructions and techniques, sales, marketing and distribution information, projects and plans, relating to the subject matter of this Agreement, which the Bottler may receive from the Company and/or CCJC, or in any other manner,
and to ensure that such information shall be made known only to those officers, directors and employees bound by reasonable provisions incorporating the secrecy obligations set out in this clause; and 

 

	 	(d)	that upon the expiration or earlier termination of this Agreement, it will forthwith hand over to the Company or as it may direct all written or graphic, electromagnetic, computerized, digital or other materials
comprising or containing any information subject to the obligation of confidentiality hereunder. 

  

	 	34.	 The Company, CCJC and the Bottler recognize that incidents may arise which can threaten the reputation and/or
business of the Bottler and/or negatively affect the good name, reputation and/or image of the Company and/or the Trade Marks. In order to address such incidents, including but not limited to any questions of quality of the Beverage that may
occur, the Bottler will designate and 

  
 14 

	 	
organize an incident management team and inform the Company of the members of such team. The Bottler further agrees to cooperate fully with the Company, CCJC and such third parties as the
Company may designate and coordinate all efforts to address and resolve any such incident consistent with procedures for incident management that may be issued to the Bottler by the Company from time to time. 

 

	 	35.	In the event of any provisions of this Agreement being or becoming legally ineffective or invalid, the validity or effect of the remaining provisions of this Agreement shall not be affected; provided that the invalidity
or ineffectiveness of the said provisions shall not prevent or unduly hamper performance hereunder or prejudice the ownership or validity of the Trade Marks. The right to terminate in accordance with Clause 24 (a)(2) is not affected hereby.

 36. 
  

	 	(a)	As to all matters and things herein mentioned, this Agreement, as may be amended or supplemented in writing from time to time, shall constitute the only agreement among the Company, CCJC and the Bottler. All prior
agreements of any kind whatsoever among the parties relating to the subject matter are cancelled hereby; provided, however, that any written representations made by the Bottler upon which the Company and/or CCJC relied in entering into this
Agreement shall remain binding upon the Bottler. 

  

	 	(b)	Any waiver or modification of, or alteration or addition to, this Agreement or any of its provisions, shall not be binding upon the Company, CCJC or the Bottler unless same shall be executed in writing by duly
authorized representatives of the Company, CCJC and the Bottler. 

  

	 	(c)	All written notices given pursuant to this Agreement shall be by courier, telefax, hand or registered (air) mail and shall be deemed to be given on the date such notice is dispatched, such registered letter is mailed,
or such hand delivery is effected. Such written notices shall be addressed to the last known address of the party concerned. Each party shall promptly advise the other parties of any change in its address. For the avoidance of any doubt,
the foregoing provisions of this Clause 36(c) shall be without prejudice to Clause 29(b) hereof. 

  

	 	37.	Failure of the Company or CCJC to exercise promptly any right herein granted, or to require strict performance of any obligation undertaken herein by the Bottler, shall not be deemed to be a waiver of such right or of
the right to demand subsequent performance of any and all obligations herein undertaken by the Bottler. 

  

	 	38.	The Bottler is an independent contractor and not an agent of, or partner or a joint venturer with, the Company or CCJC. The Bottler agrees that it will neither represent, nor allow itself to be held out as an agent
of, or partner or joint venturer with, the Company or CCJC. 

  

	 	39.	Although CCJC may assist the Company from time to time pursuant to the terms of this Agreement, the parties hereto recognize that CCJC does not have the authority to conclude contracts in the name of the Company.

  

	 	40.	The headings herein are solely for the convenience of the parties and shall not affect the interpretation of this Agreement. 

41. 
  

	 	(a)	This Agreement shall be interpreted, construed and governed by and in accordance with the laws of Japan. 

  

	 	(b)	This Agreement is made in, and shall be construed in accordance with, the English language. Any translation hereof is for reference only. If any inconsistency or conflict exists or occurs between the terms of this
Agreement and such translation, the English-language version shall prevail. 

  

	 	42.	The parties hereto shall submit to the exclusive jurisdiction of the Tokyo District Court with respect to any dispute arising from or in relation to this Agreement. 

  
 15 

 IN WITNESS WHEREOF, the Company, CCJC and the Bottler have caused these presents to be executed in
triplicate by the duly authorized person or persons in their behalf on the dates indicated below. 
  

									
	THE COCA-COLA COMPANY	 		 	[Insert the name of the BOTTLER]
					
	By:	 	  
	 		 	By:	 	  

					
	Date:	 	  
	 		 	Date:	 	  

  

							
	COCA-COLA (JAPAN) COMPANY, LIMITED	  		 	
				
	By:	 	  
	  		 	
				
	Date:	 	  
	  		 	

  
 16Ex_1016(VII)

		

			EXHIBIT 10.16(vii)

		

		

			 

		

		
			PERFORMANCE-BASED 
		

		
			RESTRICTED STOCK UNIT AWARD AGREEMENT 
		

		
			    
		

		
			 
		

		
			THIS AGREEMENT is entered into and effective as of [●] (the “Date of Grant”), by and between Ecolab Inc. (the “Company”) and [●] (the “Grantee”). 
		

		
			 
		

			
	
			
				 A.
			The Company has adopted the Ecolab Inc. 2010 Stock Incentive Plan, as amended and restated effective May 2, 2013 (the “Plan”), authorizing the Board of Directors of the Company, or a committee as provided for in the Plan (the Board or such a committee to be referred to as the “Committee”), to grant restricted Stock Unit Awards to certain employees of the Company and its Subsidiaries. 

		
			 
		

			
	
			
				 B.
			The Company desires to give the Grantee an incentive to advance the interests of the Company by granting to the Grantee an award of restricted stock units pursuant to the Plan. 

		
			 
		

		
			Accordingly, the parties agree as follows: 
		

		
			 
		

		
			ARTICLE 1. GRANT OF AWARD.  
		

		
			 
		

		
			The Company hereby grants to the Grantee a performance-based restricted Stock Unit Award (the “Award”) consisting of [●] units (the “Award Units”), each of which is a bookkeeping entry representing the right to receive one share of the Company’s common stock, par value $1.00 per share (the “Common Stock”).  The Award and Award Units are subject to the terms, conditions, restrictions and risk of forfeiture set forth in this Agreement and in the Plan. 
		

		
			 
		

		
			ARTICLE 2. VESTING OF AWARD UNITS.  
		

		
			 
		

			
	
			
				 2.1
			Vesting Date and Conditions.  Subject to Article 5 below, some or all of the Award Units will vest and become non-forfeitable (“Vested”) on December 31, [●] (the “Vesting Date”), provided that (a) the Committee has certified that the Company has achieved a level of Average Annual Return on Invested Capital (as defined below) of at least 8 percent for the three (3) year period from January 1, [●] to December 31, [●] (the “Performance Period”), and (b) the Grantee remains in the continuous employ of or service with the Company or any Subsidiary until the Vesting Date.  The number of Award Units that will vest on the Vesting Date will be determined in accordance with Section 2.2 below. 

		
			 
		

			
	
			
				 2.2
			Determining Number of Vested Units.  The following chart sets forth the percentage of the Award Units (or of a portion of the Award Units as provided in Section 5.1 of this Agreement) that will vest on the Vesting Date based upon the Company’s level of achievement of Average Annual Return on Invested Capital for the Performance Period: 

		
			
		

		
			

		 

 

		

		
			 
		

		
			 
		

		
			Average Annual Return on  Vested Award Unit 
		

		
			Invested Capital Level Percentage 
		

		
			
		

		
			Threshold Level — [●]%   [●]%  
		

		
			Maximum Level — [●]%   [●]%  
		

		
			 
		

		
			The actual percentage of Award Units that will vest based upon the Company’s achievement of Average Annual Return on Invested Capital between the Threshold Level and Maximum Level will be interpolated on a straight line basis, with the corresponding number of Vested Award Units resulting from such determination rounded up to the next whole Award Unit.  If the Average Annual Return on Invested Capital for the Performance Period is below the Threshold Level, no Award Units will vest.  Any Award Units that do not vest on the Vesting Date will be forfeited. 
		

		
			 
		

		
			2.3 Committee Certification.  The Committee shall certify the level of average annual Return on Invested Capital for the Performance Period and the percentage of Award Units that Vest as provided in Section 2.2 above no later than March 1, [●].  
		

		
			 
		

		
			2.4 Definitions and Calculations.  For purposes of this Agreement, the following amounts and terms shall be calculated and defined as follows: 
		

		
			 
		

			
	
			
				 (a)
			“Average Annual Return on Invested Capital” shall be calculated by dividing (i) the average of the Company’s Net Operating Profit After Taxes (as defined below) for each of the three fiscal years during the Performance Period, by (ii) the average of the Company’s Invested Capital (as defined below) as of the last day of the fiscal quarter immediately preceding the Performance Period and the last day of each fiscal quarter during the Performance Period.

		
			 
		

			
	
			
				 (b)
			“Net Operating Profit After Taxes” is defined as the Company’s operating income multiplied by 1 minus the Company’s effective tax rate, each as reported in the Company’s consolidated financial statements for each fiscal year during the Performance Period, adjusted to eliminate (i) the after-tax effect of additional depreciation and amortization expense resulting from fair value adjustments to assets acquired as part of the Company’s acquisitions of Nalco Holding Company (the “Nalco acquisition”) and Permian Mud Service, Inc., the parent company of Champion Technologies, Inc. and Corsicana Technologies, Inc. (the “Champion acquisition”) and the after-tax effect of special gains and charges related to the Nalco acquisition and the Champion acquisition of the types described in materials presented to the Committee on the Date of Grant; (ii) the after-tax effects of any acquisition occurring during the Performance Period that was approved by the Board; and (iii) (A) the cumulative effects of accounting or tax changes, (B) gains and losses from discontinued operations, (C) the cumulative effect of events occurring during the Performance Period that are unusual in nature or occur infrequently or both, and (D) charges for restructurings, each as defined by generally accepted accounting principles and as identified in the Company’s financial statements (including accompanying notes), management’s discussion and analysis or other filings with the Securities and Exchange Commission by the Company.

		
			 
		

			
	
			
				 (c)
			“Invested Capital” is defined as the Company’s (i) total assets less cash and cash equivalents, minus (ii) total liabilities less short-term and long-term debt, each as reported by the Company as of the end of the fiscal quarters described in Section 2.4(a) and adjusted to eliminate (A) the 

		 

		

			2

		

 

	goodwill, fair value adjustments to inventory, intangible assets and property, plant and equipment, and deferred tax liabilities arising from such fair value adjustments associated with the Nalco acquisition and the Champion acquisition, and (B) the impact of the same factors identified in clauses (ii) and (iii) of Section 2.4(b).

		
			 
		

		
			2.5 Committee Discretion.  The Committee may adjust the calculation of Average Annual Return on Invested Capital applicable to the Award Units under the circumstances, for the purpose and to the extent contemplated by Section 3.2(c) of the Plan.  Further, the actual number of Award Units that become Vested based upon achieving the specified level of Average Annual Return on Invested Capital during the Performance Period may be adjusted (but only downward if the Grantee is a Covered Employee and this Award is intended to be Performance-Based Compensation subject to Section 17 of the Plan) by the Committee in its sole and absolute discretion based on such factors as the Committee determines to be appropriate and/or advisable. 
		

		
			 
		

		
			ARTICLE 3. SETTLEMENT OF VESTED AWARD UNITS.  
		

		
			 
		

		
			Except as may otherwise be provided in Section 5.2 below, Vested Award Units will be paid to the Grantee by no later than March 15, [●].  Each Vested Award Unit will be paid to the Grantee in one share of Common Stock, provided that the Company will have no obligation to issue shares of Common Stock pursuant to this Agreement unless and until the Grantee has satisfied any applicable tax obligations pursuant to Article 9 below and such issuance otherwise complies with all applicable law.  Prior to the time the Vested Award Units are settled, the Grantee will have no rights other than those of a general creditor of the Company.  The Award Units represent an unfunded and unsecured obligation of the Company. 
		

		
			 
		

		
			ARTICLE 4. GRANT RESTRICTIONS.  
		

		
			 
		

			
	
			
				 3.1
			Transferability.  Any attempt to transfer, assign or encumber the Award Units other than in accordance with this Agreement and the Plan will be null and void, and will result in the immediate termination and forfeiture of the Award and all Award Units that have not yet vested. 

		
			 
		

			
	
			
				 3.2
			Dividends and Other Distributions.  Subject to Article 6 of this Agreement, the Grantee will have no right to receive dividends, dividend equivalents or other distributions with respect to Award Units. 

		
			 
		

		
			ARTICLE 5. TERMINATION OF EMPLOYMENT OR OTHER SERVICE; CHANGE IN CONTROL.  
		

		
			 
		

			
	
			
				 3.1
			Termination of Employment or Other Service.  This Award is considered a Stock Unit Award subject to a service-based vesting condition and to the achievement of a specified Performance Criterion as a condition to vesting for purposes of Section 12 of the Plan.  Except as otherwise provided in this Section 5.1, the effect of the termination of the Grantee’s employment or other service with the Company and all Subsidiaries prior to the Vesting Date of this Award will be as provided in Sections 12.1(c), 12.2(c), 12.3(b) and 12.5 of the Plan.  If the Grantee’s employment by or other service with the Company and all Subsidiaries is terminated by the Company or any Subsidiary without Cause prior to the Vesting Date, then (i) for purposes of Section 2.1(b) of this Agreement, the Grantee will be deemed to have been in the continuous employ of or service with the Company or any Subsidiary until the Vesting Date with respect to one-third of the Award Units if such termination occurs during the second year of the Performance Period and with respect to two-thirds of the Award Units if the such termination occurs 

		 

		

			3

		

 

	during the third year of the Performance Period, and (ii) for purposes of determining the number of Vested Award Units on the Vesting Date under Section 2.2 of this Agreement, the Vested Award Unit Percentage determined in accordance with Section 2.2 will be applied to the number of Award Units as to which the service-based vesting condition is deemed satisfied in accordance with clause (i) of this sentence, rather than to the total number of Award Units.  

		
			 
		

			
	
			
				 3.2
			Change in Control.  If a Change in Control occurs prior to the Vesting Date, the effect on this Award shall be as provided in Section 14.2 of the Plan.  If vesting of Award Units should be accelerated in accordance with Section 14.2 of the Plan, Vested Unit Awards will be settled and paid to the Grantee no later than two and one-half months after the end of the Grantee’s taxable year in which the Award Units became Vested. 

		
			 
		

		
			ARTICLE 6. ADJUSTMENTS.  
		

		
			 
		

		
			The number and kind of securities subject to this Award will be subject to adjustment under the circumstances and to the extent specified in Section 4.3 of the Plan. 
		

		
			 
		

		
			ARTICLE 7. RIGHTS AS A STOCKHOLDER.  
		

		
			 
		

		
			The Grantee will have no rights as a stockholder with respect to any of the Award Units until the Award Units are settled following vesting and the Grantee becomes the holder of record of shares of Common Stock. 
		

		
			 
		

		
			ARTICLE 8. EMPLOYMENT OR SERVICE.  
		

		
			 
		

		
			Nothing in this Agreement will be construed to (a) limit in any way the right of the Company to terminate the employment or service of the Grantee at any time, or (b) be evidence of any agreement or understanding, express or implied, that the Company will retain the Grantee in any particular position at any particular rate of compensation or for any particular period of time. 
		

		
			 
		

		
			ARTICLE 9. WITHHOLDING TAXES.  
		

		
			 
		

		
			By accepting this Award, the Grantee (i) acknowledges his or her obligation to pay any federal, foreign, state and local withholding or employment-related taxes attributable to this Award as provided in Section 13 of the Plan, and (ii) consents and directs the Company or its third party administrator to withhold the number of shares of Common Stock issuable upon the vesting of some or all of the Award Units as the Company, in its sole discretion, deems necessary to satisfy such withholding obligations.  For purposes of satisfying the Grantee’s withholding and employment-related tax obligations, shares withheld by the Company will be valued at their Fair Market Value on the date of settlement.   
		

		
			 
		

		
			ARTICLE 10. PERFORMANCE-BASED COMPENSATION.  
		

		
			 
		

		
			Any payment of Common Stock received for the Vested Award Units is intended to qualify as “performance-based compensation” for purposes of Section 162(m) of the Internal Revenue Code, and no action will be taken which would cause such payment to fail to satisfy the requirements of such exemption. 
		

		
			 
		

		
			

		 

		

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			ARTICLE 11. AUTHORIZATION TO RELEASE AND TRANSFER NECESSARY PERSONAL INFORMATION.  
		

		
			 
		

		
			The Grantee hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of the Grantee’s personal data by and among, as applicable, the Company and its Subsidiaries for the exclusive purpose of implementing, administering and managing the Grantee’s participation in the Plan.  The Grantee understands that the Company may hold certain personal information about the Grantee, including, but not limited to, the Grantee’s name, home address and telephone number, date of birth, social security number (or any other social or national identification number), salary, nationality, job title, number of Award Units and/or shares of Common Stock held and the details of all Award Units or any other entitlement to shares of Common Stock awarded, cancelled, vested, unvested or outstanding for the purpose of implementing, administering and managing the Grantee’s participation in the Plan (the “Data”).  The Grantee understands that the Data may be transferred to the Company or to any third parties assisting in the implementation, administration and management of the Plan, that these recipients may be located in the Grantee’s country or elsewhere, and that any recipient’s country (e.g., the United States) may have different data privacy laws and protections than the Grantee’s country.  The Grantee understands that he or she may request a list with the names and addresses of any potential recipients of the Data by contacting his or her local human resources representative or the Company’s stock plan administrator.  The Grantee authorizes the recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, for the sole purpose of implementing, administering and managing the Grantee’s participation in the Plan, including any requisite transfer of such Data to a broker or other third party assisting with the administration of Award Units under the Plan or with whom shares of Common Stock acquired pursuant to the vesting of the Award Units or cash from the sale of such shares may be deposited.  Furthermore, the Grantee acknowledges and understands that the transfer of the Data to the Company or to any third parties is necessary for the Grantee’s participation in the Plan.  The Grantee understands that the Grantee may, at any time, view the Data, request additional information about the storage and processing of the Data, require any necessary amendments to the Data or refuse or withdraw the consents herein by contacting the Grantee’s local human resources representative or the Company’s stock plan administrator in writing.  The Grantee further acknowledges that withdrawal of consent may affect his or her ability to vest in or realize benefits from the Award Units, and the Grantee’s ability to participate in the Plan.  For more information on the consequences of refusal to consent or withdrawal of consent, the Grantee understands that he or she may contact his or her local human resources representative or the Company’s stock plan administrator. 
		

		
			 
		

		
			ARTICLE 12. SUBJECT TO PLAN.  
		

		
			 
		

		
			12.1 Terms of Plan Prevail.  The Award and the Award Units granted pursuant to this Agreement have been granted under, and are subject to the terms of, the Plan.  The terms of the Plan are incorporated by reference in this Agreement in their entirety, and the Grantee acknowledges having received a copy of the Plan.  The provisions of this Agreement will be interpreted as to be consistent with the Plan, and any ambiguities in this Agreement will be interpreted by reference to the Plan.  In the event that any provision in this Agreement is inconsistent with the terms of the Plan, the terms of the Plan will prevail.  References in this Agreement to specific Sections of the Plan refer to those Sections of the Plan as in effect on the Date of Grant. 
		

		
			 
		

		
			12.2 Definitions.  Unless otherwise defined in this Agreement, the terms capitalized in this Agreement have the same meanings as given to such terms in the Plan. 
		

		
			 
		

		
			

		 

		

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			ARTICLE 13. MISCELLANEOUS.  
		

		
			 
		

		
			13.1 Binding Effect.  This Agreement will be binding upon the heirs, executors, administrators and successors of the parties hereto. 
		

		
			 
		

		
			13.2 Governing Law.  This Agreement and all rights and obligations under this Agreement will be construed in accordance with the Plan and governed by the laws of the State of Minnesota without regard to conflicts of law provisions.  Any legal proceeding related to this Agreement will be brought in an appropriate Minnesota court, and the parties to this Agreement consent to the exclusive jurisdiction of the court for this purpose. 
		

		
			 
		

		
			13.3 Entire Agreement.  This Agreement and the Plan set forth the entire agreement and understanding of the parties hereto with respect to the grant, vesting and payment of this Award and the administration of the Plan and supersede all prior agreements, arrangements, plans and understandings relating to the grant, vesting and payment of this Award and the administration of the Plan. 
		

		
			 
		

		
			13.4 Amendment and Waiver.  Other than as provided in the Plan, this Agreement may be amended, waived, modified or canceled only by a written instrument executed by the parties hereto or, in the case of a waiver, by the party waiving compliance. 
		

		
			 
		

		
			13.5 Captions.  The Article, Section and paragraph captions in this Agreement are for convenience of reference only, do not constitute part of this Agreement and are not to be deemed to limit or otherwise affect any of the provisions of this Agreement. 
		

		
			 
		

		
			13.6 Electronic Delivery and Execution.  The Grantee hereby consents and agrees to electronic delivery of any documents that the Company may elect to deliver (including, but not limited to, plan documents, prospectus and prospectus supplements, grant or award notifications and agreements, account statements, annual and quarterly reports, and all other forms of communications) in connection with this and any other Incentive Award made or offered under the Plan.  The Grantee understands that, unless revoked by giving written notice to the Company pursuant to the Plan, this consent will be effective for the duration of the Agreement.  The Grantee also understands that the Grantee will have the right at any time to request that the Company deliver written copies of any and all materials referred to above.  The Grantee hereby consents to any and all procedures the Company has established or may establish for an electronic signature system for delivery and acceptance of any such documents that the Company may elect to deliver, and agrees that the Grantee’s electronic signature is the same as, and will have the same force and effect as, the Grantee’s manual signature.  The Grantee consents and agrees that any such procedures and delivery may be effected by a third party engaged by the Company to provide administrative services related to the Plan. 
		

		
			 
		

		
			13.7 Address for Notice.  All notices to the Company shall be in writing and sent to the Company’s General Counsel at the Company’s corporate headquarters.  Notices to the Grantee shall be addressed to the Grantee at the address as from time to time reflected in the Company’s or Subsidiary’s employment records as the Grantee’s address. 
		

		
			 
		

		
			13.8 Severability.  In the event that any provision in this Agreement shall be held invalid or unenforceable, such provision shall be severable from, and such invalidity or unenforceability shall not be construed to have any effect on, the remaining provisions of this Agreement. 
		

		
			 
		

		
			

		 

		

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			13.9 Appendix.  Notwithstanding any provision of this Agreement to the contrary, this grant of Award Units and the shares of Common Stock acquired under the Plan shall be subject to any and all special terms and provisions, if any, as set forth in the Appendix for the Grantee’s country of residence. 
		

		
			 
		

		
			13.10 Counterparts.  For the convenience of the parties hereto, this Agreement may be executed in any number of counterparts, each such counterpart to be deemed an original instrument, and all such counterparts together to constitute the same agreement. 
		

		
			 
		

		
			The parties to this Agreement have executed this Agreement effective the day and year first above written. 
		

		
			 
		

		 

		

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