Document:

Exhibit
10.12

 

DIRECTOR
AND OFFICER INDEMNIFICATION AGREEMENT

 

This Director and Officer
Indemnification Agreement, dated as of May 13, 2004 (this “Agreement”), is made
by and between PolyPore, Inc., a Delaware corporation, and
                                     
(“Indemnitee”).

 

RECITALS:

 

A.                                  
Section 141 of
the Delaware General Corporation Law provides that the business and affairs of
a corporation shall be managed by or under the direction of its board of
directors.

 

B.                                    
By virtue of the
managerial prerogatives vested in the directors and officers of a Delaware
corporation, directors and officers act as fiduciaries of the corporation and
its stockholders.

 

C.                                    
Thus, it is
critically important to the Company and its stockholders that the Company be
able to attract and retain the most capable persons reasonably available to
serve as directors and officers of the Company.

 

D.                                   
In recognition of the
need for corporations to be able to induce capable and responsible persons to
accept positions in corporate management, Delaware law authorizes (and in some
instances requires) corporations to indemnify their directors and officers, and
further authorizes corporations to purchase and maintain insurance for the
benefit of their directors and officers.

 

E.                                     
The Delaware courts
have recognized that indemnification by a corporation serves the dual policies
of (1) allowing corporate officials to resist unjustified lawsuits, secure
in the knowledge that, if vindicated, the corporation will bear the expense of
litigation, and (2) encouraging capable women and men to serve as corporate
directors and officers, secure in the knowledge that the corporation will
absorb the costs of defending their honesty and integrity.

 

F.                                     
The number of
lawsuits challenging the judgment and actions of directors of Delaware corporations,
the costs of defending those lawsuits and the threat to directors’ personal
assets have all materially increased over the past several years, chilling the
willingness of capable women and men to undertake the responsibilities imposed
on corporate directors and officers.

 

G.                                    
Recent federal
legislation and rules adopted by the Securities and Exchange Commission and the
national securities exchanges have exposed such directors and officers to new
and substantially broadened civil liabilities.

 

H.                                   
Under Delaware law, a
director’s or officer’s right to be reimbursed for the costs of defense of
criminal actions, whether such claims are asserted under state or federal law,
does not depend upon the merits of the claims asserted against the director or
officer and is separate and distinct from any right to indemnification the
director may be able to establish.

 

 

I.                                        
Indemnitee is, or
will be, a director and/or officer of the Company and his willingness to serve
in such capacity is predicated, in substantial part, upon the Company’s
willingness to indemnify him in accordance with the principles reflected above,
to the fullest extent permitted by the laws of the State of Delaware, and upon
the other undertakings set forth in this Agreement.

 

J.                                       
Therefore, in
recognition of the need to provide Indemnitee with substantial protection
against personal liability, in order to procure Indemnitee’s continued service
as a director and/or officer of the Company and to enhance Indemnitee’s ability
to serve the Company in an effective manner, and in order to provide such
protection pursuant to express contract rights (intended to be enforceable
irrespective of, among other things, any amendment to the Company’s certificate
of incorporation or bylaws (collectively, the “Constituent Documents”), any change in
the composition of the Company’s Board of Directors (the “Board”) or any
change-in-control or business combination transaction relating to the Company),
the Company wishes to provide in this Agreement for the indemnification of and
the advancement of Expenses to Indemnitee on the terms, and subject to the
conditions, set forth in this Agreement.

 

K.                                   
In light of the
considerations referred to in the preceding recitals, it is the Company’s
intention and desire that the provisions of this Agreement be construed
liberally, subject to their express terms, to maximize the protections to be
provided to Indemnitee hereunder.

 

AGREEMENT:

 

NOW, THEREFORE, the
parties hereby agree as follows:

 

1.             
Certain Definitions.  In addition to
terms defined elsewhere herein, the following terms have the following meanings
when used in this Agreement with initial capital letters:

 

(a)         
“Change in Control” shall have occurred
at such time, if any, as Incumbent
Directors cease for any reason to constitute a majority of Directors.  For
purposes of this Section 1(a), “Incumbent Directors” means the individuals
who, as of the date hereof, are Directors of the Company and any individual
becoming a Director subsequent to the date hereof whose election, nomination
for election by the Company’s stockholders, or appointment, was approved by a
vote of at least a majority of the then Incumbent Directors (either by a
specific vote or by approval of the proxy statement of the Company in which
such person is named as a nominee for director, without objection to such
nomination); provided, however, that an individual shall not be
an Incumbent Director if such individual’s election or appointment to the Board
occurs as a result of an actual or threatened election contest (as described in
Rule 14a-12(c) of the Securities Exchange Act of 1934, as amended) with
respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the
Board.

 

 

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(b)        
“Claim” means (i) any
threatened, asserted, pending or completed claim, demand, action, suit or
proceeding, whether civil, criminal, administrative, arbitrative, investigative
or other, and whether made pursuant to federal, state or other law; and
(ii) any inquiry or investigation, whether made, instituted or conducted
by the Company or any other Person, including, without limitation, any federal,
state or other governmental entity, that Indemnitee reasonably determines might
lead to the institution of any such claim, demand, action, suit or
proceeding.  For the avoidance of doubt, the Company intends indemnity to
be provided hereunder in respect of acts or failure to act prior to, on or
after the date hereof.

 

(c)         
“Controlled Affiliate” means any
corporation, limited liability company, partnership, joint venture, trust or
other entity or enterprise, whether or not for profit, that is directly or
indirectly controlled by the Company.  For purposes of this definition, “control”
means the possession, directly or indirectly, of the power to direct or cause
the direction of the management or policies of an entity or enterprise, whether
through the ownership of voting securities, through other voting rights, by
contract or otherwise; provided
that direct or indirect beneficial ownership of capital stock or other
interests in an entity or enterprise entitling the holder to cast 15% or more
of the total number of votes generally entitled to be cast in the election of
directors (or persons performing comparable functions) of such entity or
enterprise shall be deemed to constitute control for purposes of this
definition.

 

(d)        
“Disinterested Director” means a director of
the Company who is not and was not a party to the Claim in respect of which
indemnification is sought by Indemnitee.

 

(e)         
“Expenses” means attorneys’ and
experts’ fees and expenses and all other costs and expenses paid or payable in
connection with investigating, defending, being a witness in or participating
in (including on appeal), or preparing to investigate, defend, be a witness in
or participate in (including on appeal), any Claim.

 

(f)           
“Indemnifiable Claim” means any Claim
based upon, arising out of or resulting from (i) any actual, alleged or
suspected act or failure to act by Indemnitee in his or her capacity as a
director, officer, employee or agent of the Company or as a director, officer,
employee, member, manager, trustee or agent of any other corporation, limited
liability company, partnership, joint venture, trust or other entity or
enterprise, whether or not for profit, as to which Indemnitee is or was serving
at the request of the Company, (ii) any actual, alleged or suspected act
or failure to act by Indemnitee in respect of any business, transaction,
communication, filing, disclosure or other activity of the Company or any other
entity or enterprise referred to in clause (i) of this sentence, or
(iii) Indemnitee’s status as a current or former director, officer,
employee or agent of the Company or as a current or former director, officer,
employee, member, manager, trustee or agent of the Company or any other entity
or enterprise referred to in clause (i) of this sentence or any actual,
alleged or suspected act or failure to act by Indemnitee in connection with any
obligation or restriction imposed upon Indemnitee by reason of such
status.  In addition to any service at the actual request of the Company,
for purposes of this Agreement, Indemnitee shall be deemed to be serving or to
have served at the request

 

 

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of the Company as a director, officer, employee,
member, manager, trustee or agent of another entity or enterprise if Indemnitee
is or was serving as a director, officer, employee, member, manager, agent,
trustee or other fiduciary of such entity or enterprise and (i) such
entity or enterprise is or at the time of such service was a Controlled
Affiliate, (ii) such entity or enterprise is or at the time of such service
was an employee benefit plan (or related trust) sponsored or maintained by the
Company or a Controlled Affiliate, or (iii) the Company or a Controlled
Affiliate (by action of the Board, any committee thereof or the Company’s Chief
Executive Officer (“CEO”)
(other than as the CEO him or herself)) caused or authorized Indemnitee to be
nominated, elected, appointed, designated, employed, engaged or selected to
serve in such capacity.

 

(g)        
“Indemnifiable Losses” means any and all
Losses relating to, arising out of or resulting from any Indemnifiable Claim; provided, however, that Indemnifiable
Losses shall not include Losses incurred by Indemnitee in respect of any
Indemnifiable Claim (or any matter or issue therein) as to which Indemnitee
shall have been adjudged liable to the Company, unless and only to the extent
that the Delaware Court of Chancery or the court in which such Indemnifiable
Claim was brought shall have determined upon application that, despite the
adjudication of liability but in view of all the circumstances of the case,
Indemnitee is fairly and reasonably entitled to indemnification for such
Expenses as the court shall deem proper.

 

(h)        
“Independent Counsel” means a nationally
recognized law firm, or a member of a nationally recognized law firm, that is
experienced in matters of Delaware corporate law and neither presently is, nor
in the past five years has been, retained to represent:  (i) the
Company (or any Subsidiary) or Indemnitee in any matter material to either such
party (other than with respect to matters concerning the Indemnitee under this
Agreement, or of other indemnitees under similar indemnification agreements) or
(ii) any other named (or, as to a threatened matter, reasonably likely to
be named) party to the Indemnifiable Claim giving rise to a claim for
indemnification hereunder.  Notwithstanding the foregoing, the term
“Independent Counsel” shall not include any person who, under the applicable
standards of professional conduct then prevailing, would have a conflict of
interest in representing either the Company or Indemnitee in an action to
determine Indemnitee’s rights under this Agreement.

 

(i)            
“Losses” means any and all
Expenses, damages, losses, liabilities, judgments, fines, penalties (whether
civil, criminal or other) and amounts paid or payable in settlement, including,
without limitation, all interest, assessments and other charges paid or payable
in connection with or in respect of any of the foregoing.

 

(j)            
“Person” means any
individual, entity or group, within the meaning of Section 13(d)(3) or
14(d)(2) of the Securities Exchange Act of 1934, as amended.

 

(k)         
“Standard of Conduct” means the standard
for conduct by Indemnitee that is a condition precedent to indemnification of
Indemnitee hereunder against Indemnifiable Losses relating to, arising out of
or resulting from an Indemnifiable Claim.  The Standard of Conduct is (i)
good faith and a reasonable belief by Indemnitee that his action was in or not
opposed to the best interests of the Company and, with respect to any

 

 

4

 

criminal action or proceeding, that Indemnitee had no
reasonable cause to believe that his conduct was unlawful, or (ii) any other
applicable standard of conduct that may hereafter be substituted under
Section 145(a) or (b) of the Delaware General Corporation Law or any
successor to such provision(s).

 

2.             
Indemnification
Obligation.  Subject only to Section 7 and to the proviso in this
Section, the Company shall indemnify, defend and hold harmless Indemnitee, to
the fullest extent permitted or required by the laws of the State of Delaware
in effect on the date hereof or as such laws may from time to time hereafter be
amended to increase the scope of such permitted indemnification, against any
and all Indemnifiable Claims and Indemnifiable Losses; provided, however,
that, except as provided in Sections 5, Indemnitee shall not be entitled to
indemnification pursuant to this Agreement in connection with any Claim
initiated by Indemnitee against the Company or any director or officer of the
Company unless the Company has joined in or consented to the initiation of such
Claim.  The Company acknowledges that the foregoing obligation may be broader
than that now provided by applicable law and the Company’s Constituent
Documents and intends that it be interpreted consistently with this
Section and the recitals to this Agreement.

 

3.             
Advancement of
Expenses.  Indemnitee shall have the right to advancement by the Company
prior to the final disposition of any Indemnifiable Claim of any and all actual
and reasonable Expenses relating to, arising out of or resulting from any
Indemnifiable Claim paid or incurred by Indemnitee.  Without limiting the
generality or effect of any other provision hereof, Indemnitee’s right to such
advancement is not subject to the satisfaction of any Standard of
Conduct.  Without limiting the generality or effect of the foregoing,
within five business days after any request by Indemnitee that is accompanied
by supporting documentation for specific reasonable Expenses to be reimbursed
or advanced, the Company shall, in accordance with such request (but without
duplication), (a) pay such Expenses on behalf of Indemnitee,
(b) advance to Indemnitee funds in an amount sufficient to pay such
Expenses, or (c) reimburse Indemnitee for such Expenses; provided that Indemnitee shall repay,
without interest any amounts actually advanced to Indemnitee that, at the final
disposition of the Indemnifiable Claim to which the advance related, were in
excess of amounts paid or payable by Indemnitee in respect of Expenses relating
to, arising out of or resulting from such Indemnifiable Claim.  In
connection with any such payment, advancement or reimbursement, at the request
of the Company, Indemnitee shall execute and deliver to the Company an
undertaking, which need not be secured and shall be accepted without reference
to Indemnitee’s ability to repay the Expenses, by or on behalf of the
Indemnitee, to repay any amounts paid, advanced or reimbursed by the Company in
respect of Expenses relating to, arising out of or resulting from any
Indemnifiable Claim in respect of which it shall have been determined,
following the final disposition of such Indemnifiable Claim and in accordance
with Section 7, that Indemnitee is not entitled to indemnification
hereunder.

 

4.             
Indemnification for
Additional Expenses.  Without limiting the generality or effect of the
foregoing, the Company shall indemnify and hold harmless Indemnitee against
and, if requested by Indemnitee, shall reimburse Indemnitee for, or advance to

 

 

5

 

Indemnitee, within five business days of such request
accompanied by supporting documentation for specific Expenses to be reimbursed
or advanced, any and all actual and reasonable Expenses paid or incurred by
Indemnitee in connection with any Claim made, instituted or conducted by
Indemnitee for (a) indemnification or reimbursement or advance payment of
Expenses by the Company under any provision of this Agreement, or under any
other agreement or provision of the Constituent Documents now or hereafter in
effect relating to Indemnifiable Claims, and/or (b) recovery under any
directors’ and officers’ liability insurance policies maintained by the
Company; provided, however, if it
is ultimately determined that the Indemnitee is not entitled to such
indemnification, reimbursement, advance or insurance recovery, as the case may
be, then the Indemnitee shall be obligated to repay any such Expenses to the
Company; provided further, that,
regardless in each case of whether Indemnitee ultimately is determined to be
entitled to such indemnification, reimbursement, advance or insurance recovery,
as the case may be, Indemnitee shall return, without interest, any such advance
of Expenses (or portion thereof) which remains unspent at the final disposition
of the Claim to which the advance related.

 

5.             
Partial Indemnity.  If Indemnitee
is entitled under any provision of this Agreement to indemnification by the
Company for some or a portion of any Indemnifiable Loss but not for all of the
total amount thereof, the Company shall nevertheless indemnify Indemnitee for
the portion thereof to which Indemnitee is entitled.

 

6.             
Procedure for
Notification.  To obtain indemnification under this Agreement in
respect of an Indemnifiable Claim or Indemnifiable Loss, Indemnitee shall
submit to the Company a written request therefor, including a brief description
(based upon information then available to Indemnitee) of such Indemnifiable
Claim or Indemnifiable Loss.  If, at the time of the receipt of such
request, the Company has directors’ and officers’ liability insurance in effect
under which coverage for such Indemnifiable Claim or Indemnifiable Loss is
potentially available, the Company shall give prompt written notice of such
Indemnifiable Claim or Indemnifiable Loss to the applicable insurers in
accordance with the procedures set forth in the applicable policies.  The
Company shall provide to Indemnitee a copy of such notice delivered to the
applicable insurers, substantially concurrently with the delivery thereof by
the Company.  The failure by Indemnitee to timely notify the Company of
any Indemnifiable Claim or Indemnifiable Loss shall not relieve the Company
from any liability hereunder unless, and only to the extent that, the Company
did not otherwise learn of such Indemnifiable Claim or Indemnifiable Loss and
to the extent that such failure results in forfeiture by the Company of
substantial defenses, rights or insurance coverage.

 

7.             
Determination of
Right to Indemnification.

 

(a)         
To
the extent that Indemnitee shall have been successful on the merits or
otherwise in defense of any Indemnifiable Claim or any portion thereof or in
defense of any issue or matter therein, including, without limitation,
dismissal without prejudice, Indemnitee shall be indemnified against all
Indemnifiable Losses relating to, arising out of or resulting from such
Indemnifiable Claim in accordance with Section 2 and no

 

 

6

 

Standard of Conduct Determination (as defined in
Section 7(b)) shall be required.

 

(b)        
To
the extent that the provisions of Section 7(a) are inapplicable to an
Indemnifiable Claim that shall have been finally disposed of, any determination
of whether Indemnitee has satisfied the applicable Standard of Conduct (a “Standard of Conduct
Determination”) shall be made as follows:  (i) if a Change in
Control shall not have occurred, or if a Change in Control shall have occurred
but Indemnitee shall have requested that the Standard of Conduct Determination
be made pursuant to this clause (i), (A) by a majority vote of the
Disinterested Directors, even if less than a quorum of the Board, (B) if
such Disinterested Directors so direct, by a majority vote of a committee of
Disinterested Directors designated by a majority vote of all Disinterested Directors,
or (C) if there are no such Disinterested Directors, or if a majority of
the Disinterested Directors so direct, by Independent Counsel in a written
opinion addressed to the Board, a copy of which shall be delivered to
Indemnitee; and (ii) if a Change in Control shall have occurred and
Indemnitee shall not have requested that the Standard of Conduct Determination
be made pursuant to clause (i), by Independent Counsel in a written
opinion addressed to the Board, a copy of which shall be delivered to Indemnitee.

 

(c)         
If
(i) Indemnitee shall be entitled to indemnification hereunder against any
Indemnifiable Losses pursuant to Section 7(a), (ii) no determination
of whether Indemnitee has satisfied any applicable standard of conduct under
Delaware law is a legally required condition precedent to indemnification of
Indemnitee hereunder against any Indemnifiable Losses, or (iii) Indemnitee
has been determined or deemed pursuant to Section 7(b) to have satisfied
the applicable Standard of Conduct, then the Company shall pay to Indemnitee,
within five business days after the later of (x) the Notification Date in
respect of the Indemnifiable Claim or portion thereof to which such
Indemnifiable Losses are related, out of which such Indemnifiable Losses arose
or from which such Indemnifiable Losses resulted, and (y) the earliest
date on which the applicable criterion specified in clause (i), (ii) or (iii)
above shall have been satisfied, an amount equal to the amount of such
Indemnifiable Losses.  Nothing herein is intended to mean or imply that
the Company is intending to use Section 145(f) of the Delaware General
Corporation Law to dispense with a requirement that Indemnitee meet the
applicable Standard of Conduct where it is otherwise required by such statute.

 

(d)        
If
a Standard of Conduct Determination is required to be, but has not been, made
by Independent Counsel pursuant to Section 7(b)(i), the Independent
Counsel shall be selected by the Board or a committee of the Board, and the
Company shall give written notice to Indemnitee advising him or her of the
identity of the Independent Counsel so selected.  If a Standard of Conduct
Determination is required to be, or to have been, made by Independent Counsel
pursuant to Section 7(b)(ii), the Independent Counsel shall be selected by
Indemnitee, and Indemnitee shall give written notice to the Company advising it
of the identity of the Independent Counsel so selected.  In either case,
Indemnitee or the Company, as applicable, may, within five business days after
receiving written notice of selection from the other, deliver to the other a
written objection to such selection; provided,
however, that such objection may
be asserted only on the ground that the Independent Counsel so selected does
not satisfy the criteria set forth in the definition of “Independent Counsel”
in Section 1(h), and the objection shall

 

 

7

 

set forth with particularity the factual basis of such
assertion.  Absent a proper and timely objection, the Person so selected
shall act as Independent Counsel.  If such written objection is properly
and timely made and substantiated, (i) the Independent Counsel so selected
may not serve as Independent Counsel unless and until such objection is withdrawn
or a court has determined that such objection is without merit and
(ii) the non-objecting party may, at its option, select an alternative
Independent Counsel and give written notice to the other party advising such
other party of the identity of the alternative Independent Counsel so selected,
in which case the provisions of the two immediately preceding sentences and
clause (i) of this sentence shall apply to such subsequent selection and
notice.  If applicable, the provisions of clause (ii) of the immediately
preceding sentence shall apply to successive alternative selections.  If
no Independent Counsel that is permitted under the foregoing provisions of this
Section 7(d) to make the Standard of Conduct Determination shall have been
selected within 30 calendar days after the Company gives its initial
notice pursuant to the first sentence of this Section 7(d) or Indemnitee
gives its initial notice pursuant to the second sentence of this
Section 7(d), as the case may be, either the Company or Indemnitee may
petition the Court of Chancery of the State of Delaware for resolution of any
objection which shall have been made by the Company or Indemnitee to the
other’s selection of Independent Counsel and/or for the appointment as
Independent Counsel of a person or firm selected by the Court or by such other
person as the Court shall designate, and the person or firm with respect to
whom all objections are so resolved or the person or firm so appointed will act
as Independent Counsel.  In all events, the Company shall pay all of the
actual and reasonable fees and expenses of the Independent Counsel incurred in
connection with the Independent Counsel’s determination pursuant to
Section 7(b).

 

8.             
Cooperation.  Indemnitee shall
cooperate with reasonable requests of the Company in connection with any
Indemnifiable Claim and any individual or firm making such Standard of Conduct
Determination, including providing to such Person documentation or information
which is not privileged or otherwise protected from disclosure and which is
reasonably available to Indemnitee and reasonably necessary to defend the
Indemnifiable Claim or make any Standard of Conduct Determination without
incurring any unreimbursed cost in connection therewith.  The Company shall
indemnify and hold harmless Indemnitee against and, if requested by Indemnitee,
shall reimburse Indemnitee for, or advance to Indemnitee, within five business
days of such request accompanied by supporting documentation for specific costs
and expenses to be reimbursed or advanced, any and all costs and expenses
(including attorneys’ and experts’ fees and expenses) actually and reasonably
incurred by Indemnitee in so cooperating with the Person defending the
Indemnifiable Claim or making such Standard of Conduct Determination.

 

9.             
Presumption of
Entitlement.  Notwithstanding any other provision hereof, in making
any Standard of Conduct Determination, the Person making such determination
shall presume that Indemnitee has satisfied the applicable Standard of Conduct.

 

10.       No Other Presumption.  For purposes of
this Agreement, the termination of any Claim by judgment, order, settlement
(whether with or without court approval) or conviction, or upon a plea of nolo contendere or its equivalent, will
not create a

 

 

8

 

presumption that Indemnitee did not meet any
applicable Standard of Conduct or that indemnification hereunder is otherwise
not permitted.

 

11.       Non-Exclusivity.  The rights of
Indemnitee hereunder will be in addition to any other rights Indemnitee may
have under the Constituent Documents, or the substantive laws of the Company’s
jurisdiction of incorporation, any other contract or otherwise (collectively, “Other Indemnity
Provisions”); provided,
however, that (a) to the
extent that Indemnitee otherwise would have any greater right to
indemnification under any Other Indemnity Provision, Indemnitee will without
further action be deemed to have such greater right hereunder, and (b) to the
extent that any change is made to any Other Indemnity Provision which permits
any greater right to indemnification than that provided under this Agreement as
of the date hereof, Indemnitee will be deemed to have such greater right
hereunder.  The Company may not, without the consent of Indemnitee, adopt
any amendment to any of the Constituent Documents the effect of which would be
to deny, diminish or encumber Indemnitee’s right to indemnification under this
Agreement.

 

12.       Liability Insurance and Funding.  For the
duration of Indemnitee’s service as a director and/or officer of the Company
and for a reasonable period of time thereafter, which such period shall be
determined by the Company in its sole discretion, the Company shall use
commercially reasonable efforts (taking into account the scope and amount of
coverage available relative to the cost thereof) to cause to be maintained in
effect policies of directors’ and officers’ liability insurance providing
coverage for directors and/or officers of the Company that is substantially
comparable in scope and amount to that provided by the Company’s current
policies of directors’ and officers’ liability insurance.  Upon reasonable
request, the Company shall provide Indemnitee or his or her counsel with a copy
of all directors’ and officers’ liability insurance applications, binders,
policies, declarations, endorsements and other related materials.  In all
policies of directors’ and officers’ liability insurance obtained by the
Company, Indemnitee shall be named as an insured in such a manner as to provide
Indemnitee the same rights and benefits, subject to the same limitations, as
are accorded to the Company’s directors and officers most favorably insured by
such policy.  Notwithstanding the foregoing, (i) the Company may, but
shall not be required to, create a trust fund, grant a security interest or use
other means, including, without limitation, a letter of credit, to ensure the
payment of such amounts as may be necessary to satisfy its obligations to
indemnify and advance expenses pursuant to this Agreement and (ii) in renewing
or seeking to renew any insurance hereunder, the Company will not be required
to expend more than 2.0 times the premium amount of the immediately preceding
policy period (equitably adjusted if necessary to reflect differences in policy
periods).

 

13.       Subrogation.  In the event of payment
under this Agreement, the Company shall be subrogated to the extent of such
payment to all of the related rights of recovery of Indemnitee against other
Persons (other than Indemnitee’s successors), including any entity or
enterprise referred to in clause (i) of the definition of “Indemnifiable Claim”
in Section 1(f).  Indemnitee shall execute all papers reasonably
required to evidence such rights (all of Indemnitee’s reasonable Expenses,
including attorneys’ fees and charges, related thereto to be reimbursed by or,
at the option of Indemnitee, advanced by the

 

 

9

 

Company).

 

14.       No Duplication of Payments.  The Company
shall not be liable under this Agreement to make any payment to Indemnitee in
respect of any Indemnifiable Losses to the extent Indemnitee has otherwise
already actually received payment (net of Expenses incurred in connection
therewith) under any insurance policy, the Constituent Documents and Other
Indemnity Provisions or otherwise (including from any entity or enterprise
referred to in clause (i) of the definition of “Indemnifiable Claim” in
Section 1(f)) in respect of such Indemnifiable Losses otherwise
indemnifiable hereunder.

 

15.       Defense of Claims.  Subject to the
provisions of applicable policies of directors’ and officers’ liability
insurance, if any, the Company shall be entitled to participate in the defense
of any Indemnifiable Claim or to assume or lead the defense thereof with
counsel reasonably satisfactory to the Indemnitee; provided that if Indemnitee determines, after consultation
with counsel selected by Indemnitee, that (a) the use of counsel chosen by
the Company to represent Indemnitee would present such counsel with an actual
or potential conflict, (b) the named parties in any such Indemnifiable
Claim (including any impleaded parties) include both the Company and Indemnitee
and Indemnitee shall conclude that there may be one or more legal defenses
available to him or her that are different from or in addition to those
available to the Company, (c) any such representation by such counsel
would be precluded under the applicable standards of professional conduct then
prevailing, or (d) Indemnitee has interests in the claim or underlying subject
matter that are different from or in addition to those of other Persons against
whom the Claim has been made or might reasonably be expected to be made, then
Indemnitee shall be entitled to retain separate counsel (but not more than one
law firm plus, if applicable, local counsel in respect of any particular
Indemnifiable Claim for all indemnitees in Indemnitee’s circumstances) at the
Company’s expense.  The Company shall not be liable to Indemnitee under
this Agreement for any amounts paid in settlement of any threatened or pending
Indemnifiable Claim effected without the Company’s prior written consent. 
The Company shall not, without the prior written consent of the Indemnitee,
effect any settlement of any threatened or pending Indemnifiable Claim
which the Indemnitee is or could have been a party unless such settlement
solely involves the payment of money and includes a complete and unconditional
release of the Indemnitee from all liability on any claims that are the subject
matter of such Indemnifiable Claim.  Neither the Company nor Indemnitee
shall unreasonably withhold its consent to any proposed settlement; provided that Indemnitee may withhold
consent to any settlement that does not provide a complete and unconditional
release of Indemnitee.

 

16.      
Successors and Binding Agreement.

 

(a)         
This
Agreement shall be binding upon and inure to the benefit of the Company and any
successor to the Company, including, without limitation, any Person acquiring
directly or indirectly all or substantially all of the business or assets of
the Company whether by purchase, merger, consolidation, reorganization or
otherwise (and such successor will thereafter be deemed the “Company” for purposes of this
Agreement), but shall not otherwise be assignable or delegatable by the
Company.

 

 

10

 

(b)        
This
Agreement shall inure to the benefit of and be enforceable by the Indemnitee’s
personal or legal representatives, executors, administrators, heirs,
distributees, legatees and other successors.

 

(c)         
This
Agreement is personal in nature and neither of the parties hereto shall,
without the consent of the other, assign or delegate this Agreement or any
rights or obligations hereunder except as expressly provided in
Sections 16(a) and 16(b).  Without limiting the generality or effect
of the foregoing, Indemnitee’s right to receive payments hereunder shall not be
assignable, whether by pledge, creation of a security interest or otherwise,
other than by a transfer by the Indemnitee’s will or by the laws of descent and
distribution, and, in the event of any attempted assignment or transfer
contrary to this Section 16(c), the Company shall have no liability to pay
any amount so attempted to be assigned or transferred.

 

17.       Notices.  For all purposes of this
Agreement, all communications, including without limitation notices, consents,
requests or approvals, required or permitted to be given hereunder must be in
writing and shall be deemed to have been duly given when hand delivered or
dispatched by electronic facsimile transmission (with receipt thereof orally
confirmed), or one business day after having been sent for next-day delivery by
a nationally recognized overnight courier service, addressed to the Company (to
the attention of the Secretary of the Company) and to Indemnitee at the
applicable address shown on the signature page hereto, or to such other address
as any party may have furnished to the other in writing and in accordance
herewith, except that notices of changes of address will be effective only upon
receipt.

 

18.       Governing Law.  The validity,
interpretation, construction and performance of this Agreement shall be
governed by and construed in accordance with the substantive laws of the State
of Delaware, without giving effect to the principles of conflict of laws of
such State.  The Company and Indemnitee each hereby irrevocably consent to
the jurisdiction of the Chancery Court of the State of Delaware for all
purposes in connection with any action or proceeding which arises out of or
relates to this Agreement, waive all procedural objections to suit in that
jurisdiction, including, without limitation, objections as to venue or
inconvenience, agree that service in any such action may be made by notice
given in accordance with Section 17 and also agree that any action
instituted under this Agreement shall be brought only in the Chancery Court of
the State of Delaware.

 

19.       Validity.  If any provision of this
Agreement or the application of any provision hereof to any Person or
circumstance is held invalid, unenforceable or otherwise illegal, the remainder
of this Agreement and the application of such provision to any other Person or
circumstance shall not be affected, and the provision so held to be invalid,
unenforceable or otherwise illegal shall be reformed to the extent, and only to
the extent, necessary to make it enforceable, valid or legal.  In the
event that any court or other adjudicative body shall decline to reform any
provision of this Agreement held to be invalid, unenforceable or otherwise
illegal as contemplated by the immediately preceding sentence, the parties thereto
shall take all such action as may be necessary or appropriate to replace the
provision so held to be invalid, unenforceable or otherwise illegal with one or
more alternative provisions that effectuate the purpose and intent of

 

 

11

 

the original provisions of this Agreement as fully as
possible without being invalid, unenforceable or otherwise illegal.

 

20.       Miscellaneous.  No provision of this
Agreement may be waived, modified or discharged unless such waiver,
modification or discharge is agreed to in writing signed by Indemnitee and the
Company.  No waiver by either party hereto at any time of any breach by
the other party hereto or compliance with any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time.  No agreements or representations, oral or otherwise,
expressed or implied with respect to the subject matter hereof have been made
by either party that are not set forth expressly in this Agreement.

 

21.       Certain Interpretive Matters.  Unless the
context of this Agreement otherwise requires, (1) “it” or “its” or words of any
gender include each other gender, (2) words using the singular or plural number
also include the plural or singular number, respectively, (3) the terms
“hereof,” “herein,” “hereby” and derivative or similar words refer to this
entire Agreement, (4) the terms “Article,” “Section,” “Annex” or “Exhibit”
refer to the specified Article, Section, Annex or Exhibit of or to this
Agreement, (5) the terms “include,” “includes” and “including” will be deemed
to be followed by the words “without limitation” (whether or not so expressed),
and (6) the word “or” is disjunctive but not exclusive.  Whenever this
Agreement refers to a number of days, such number will refer to calendar days
unless business days are specified and whenever action must be taken (including
the giving of notice or the delivery of documents) under this Agreement during
a certain period of time or by a particular date that ends or occurs on a
non-business day, then such period or date will be extended until the
immediately following business day.  As used herein, “business day” means
any day other than Saturday, Sunday or a United States federal holiday.

 

22.       Entire Agreement.  This Agreement
constitutes the entire agreement, and supersede all prior agreements and
understandings, both written and oral, between the parties hereto with respect
to the subject matter of this Agreement.  Any prior agreements or
understandings between the parties hereto with respect to indemnification are
hereby terminated and of no further force or effect.

 

23.       Counterparts.  This Agreement may be
executed in one or more counterparts, each of which will be deemed to be an
original but all of which together shall constitute one and the same agreement.

 

 

[
SIGNATURE PAGE FOLLOWS ]

 

 

12

 

IN WITNESS WHEREOF,
Indemnitee has executed and the Company has caused its duly authorized
representative to execute this Agreement as of the date first above written.

 

	
   

  	
  POLYPORE,
  INC.

  
	
   

  	
  Address:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INDEMNITEE

  
	
   

  	
  Address:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:QuickLinks
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Exhibit 4.3  

Molson Coors Brewing Company

Incentive Compensation Plan  

Effective February 9, 2005 

   Contents  

	Article 1.	 	Establishment, Purpose, and Duration	 	1
	

Article 2.	
 	

Definitions	
 	

1
	

Article 3.	
 	

Administration	
 	

6
	

Article 4.	
 	

Shares Subject to the Plan and Maximum Awards	
 	

7
	

Article 5.	
 	

Eligibility and Participation	
 	

8
	

Article 6.	
 	

Stock Options	
 	

9
	

Article 7.	
 	

Stock Appreciation Rights	
 	

11
	

Article 8.	
 	

Restricted Stock and Restricted Stock Units	
 	

12
	

Article 9.	
 	

Performance Units/Performance Shares	
 	

14
	

Article 10.	
 	

Cash-Based Awards and Other Stock-Based Awards	
 	

14
	

Article 11.	
 	

Performance Measures	
 	

15
	

Article 12.	
 	

Covered Employee Annual Incentive Award	
 	

17
	

Article 13.	
 	

Nonemployee Director Awards	
 	

17
	

Article 14.	
 	

Dividend Equivalents	
 	

17
	

Article 15.	
 	

Beneficiary Designation	
 	

17
	

Article 16.	
 	

Deferrals	
 	

17
	

Article 17.	
 	

Rights of Participants	
 	

18
	

Article 18.	
 	

Change in Control	
 	

18
	

Article 19.	
 	

Amendment, Modification, Suspension, and Termination	
 	

19
	

Article 20.	
 	

Withholding	
 	

19
	

Article 21.	
 	

Successors	
 	

19
	

Article 22.	
 	

General Provisions	
 	

20

i

 
 

PART II
  Molson Coors Brewing Company
  Incentive Compensation Plan    
    

Item 2. Article 1. Establishment, Purpose, and Duration  

        1.1    Establishment.    Adolph Coors Company, a Delaware corporation,
to be known as the Molson Coors Brewing Company commencing at the Effective Time referred to in the Combination Agreement (as defined in Article 2 below) (hereinafter referred to, together with
its Affiliates and Subsidiaries (as hereinafter defined), as the "Company", except where the context otherwise requires), establishes an incentive compensation plan to be known as the Incentive
Compensation Plan (the "Plan"), as set forth in this document. 

        The
Plan permits the grant of Cash-Based Awards, Nonqualified Stock Options, Incentive Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units,
Performance Shares, Performance Units, Covered Employee Annual Incentive Awards, and Other Stock-Based Awards. 

        The
Plan shall become effective upon the later of shareholder approval of the Plan or the Effective Time referred to in the Combination Agreement (as defined below) (the "Effective
Date") and shall remain in effect as provided in Section 1.3 hereof. 

        1.2    Purpose of the Plan.    The purpose of the Plan is to provide a
means whereby Employees, Directors, and Third-Party Service Providers of the Company develop a sense of proprietorship and personal involvement in the development and financial success of the Company,
and to encourage them to devote their best efforts to the business of the Company, thereby advancing the interests of the Company and its stockholders. A further purpose of the Plan is to provide a
means through which the Company may attract able individuals to become Employees or serve as Directors or Third-Party Service Providers of the Company and to provide a means whereby those individuals
upon whom the responsibilities of the successful administration and management of the Company are of importance, can acquire and maintain stock ownership, thereby strengthening their concern for the
welfare of the Company. 

        1.3    Duration of the Plan.    Unless sooner terminated as provided
herein, the Plan shall terminate ten (10) years from the Effective Date. After the Plan is terminated, no Awards may be granted but Awards previously granted shall remain outstanding in
accordance with their applicable terms and conditions and the Plan's terms and conditions. Notwithstanding the foregoing, no Incentive Stock Options may be granted more than ten (10) years
after the earlier of (a) adoption of the Plan by the Board, or (b) the Effective Date. 

Item 3. Article 2. Definitions  

        Whenever used in the Plan, the following terms shall have the meanings set forth below, and when the meaning is intended, the initial letter of the word shall be
capitalized. 

	2.1
	"Affiliate" mean any corporation or any other entity (including, but not limited to, a partnership) which is affiliated with the
Company through stock ownership or otherwise.

	2.2
	"Annual Award Limit" or "Annual Award Limits" have the meaning set forth in
Section 4.3.

	2.3
	"Award" means, individually or collectively, a grant under this Plan of Cash-Based Awards, Nonqualified Stock Options,
Incentive Stock Options, SARs, Restricted Stock, Restricted Stock Units, Performance Shares, Performance Units, Covered Employee Annual Incentive Awards, or Other Stock-Based Awards, in each case
subject to the terms of this Plan.

	2.4
	"Award Agreement" means either (i) a written agreement entered into by the Company and a Participant setting forth the terms and
provisions applicable to an Award granted under this Plan, or (ii) a written statement issued by the Company to a Participant describing the terms and provisions of such Award, including any
amendment or modification thereof. The Committee may provide for the use of electronic, internet or other non-paper Award 

 

Agreements
and the use of electronic, internet or other non-paper means for the acceptance thereof and actions thereunder by the Participant. 

	2.5
	"Beneficial Owner" or "Beneficial Ownership" shall have the meaning ascribed to such
term in Rule 13d-3 of the General Rules and Regulations under the Exchange Act.

	2.6
	"Board" or "Board of Directors" means the Board of Directors of the Company.

	2.7
	"Cash-Based Award" means an Award granted to a Participant as described in Article 10.

	2.8
	"Cause" means the Participant's:

	(a)
	Continued
failure to substantially perform his duties with the Company;

	(b)
	Conviction
of a felony;

	(c)
	Engagement
in illegal conduct, an act of dishonesty, or other conduct, that the Committee, in its sole discretion, determines to be injurious to the Company;

	(d)
	Willful
breach of a material provision of the Company's ethical code of conduct as determined by the Committee; or

	(e)
	Material
breach of fiduciary duties to the Company.

	

	Notwithstanding
the foregoing, if the Participant and the Company have entered into an employment or service agreement which defines "Cause" (or words of similar import),
such definition and any procedures relating to the determination thereof set forth in such agreement shall govern the determination of whether "Cause" has occurred for purposes of the Plan.

	2.9
	"Change in Control" means the occurrence of any of the following events after the Effective Date:

	(a)
	The
acquisition or holding by any Person of Beneficial Ownership of combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the
election of a majority of the Board of Directors (the "Outstanding Company Voting Securities") in excess of the Outstanding Company Voting Securities held by the Voting Trust; provided, that for
purposes of this Section 2.9, any such acquisition or holding by any of the following entities shall not by itself constitute a Change in Control: (i) a Person who on the Effective Date
is the Beneficial Owner of twenty percent (20%) or more of the Outstanding Company Voting Securities, (ii) the Company or any Subsidiary, or (iii) any employee benefit plan (or related
trust) sponsored or maintained by the Company or any of its Subsidiaries;

	(b)
	Individuals
who constitute the Board as of the Effective Date hereof (the "Incumbent Board") cease for any reason to constitute at least a majority of the Board, provided that any
individual becoming a Director subsequent to the Effective Date whose election, or nomination for election by the Company's stockholders, was approved by the Nominating Committee and/or the
subcommittees of such Nominating Committee in accordance with the Company's Restated Certificate of Incorporation and By-laws shall be considered as though such individual were a member of
the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office is in connection with an actual or threatened election contest relating to the election or
removal of the Directors of the Company or other actual or threatened solicitation of proxies of consents by or on behalf of a Person other than the Board;

	(c)
	Consummation
of a reorganization, merger, or consolidation to which the Company is a party or a sale or other disposition of all or substantially all of the assets of the Company 

2

 

(a
"Business Combination"), in each case unless, following such Business Combination: (i) the Voting Trust continues to hold, directly or indirectly, more than fifty percent (50%) of the
Outstanding Company Voting Securities of the Company or a corporation which as a result of such transaction owns the Company or all or substantially all of the Company's assets either directly or
through one or more direct or indirect subsidiaries (the Company or such other entity resulting from Business Combination, the "Successor Entity"); and (ii) at least a majority of the members
of the board of directors of the Successor Entity were members of the Incumbent Board (including individuals deemed to be members of the Incumbent Board by reason of the proviso to
paragraph (b) of this Section 2.9) at the time of the execution of the initial agreement or of the action of the Board providing for such Business Combination; or 

	(d)
	Approval
by the stockholders of the Company of a complete liquidation or dissolution of the Company.

 

	2.10
	"Code" means the U.S. Internal Revenue Code of 1986, as amended from time to time. For purposes of this Plan, references to sections
of the Code shall be deemed to include references to any applicable regulations thereunder and any successor or similar provisions.

	2.11
	"Combination Agreement" means the Combination Agreement dated as of July 21, 2004, by and among the Company, Coors
Canada Inc. and Molson Inc.

	2.12
	"Committee" means the Compensation Committee of the Board or a subcommittee thereof, or any other committee designated by the Board to
administer this Plan. The members of the Committee shall be appointed from time to time by and shall serve at the discretion of the Board.

	2.13
	"Company" means, where the context requires, Adolph Coors Company, a Delaware corporation, to be known as Molson Coors Brewing Company
as of the Effective Time of the Arrangement (as defined below), any successor thereto as provided in Article 21 herein. As set forth in Section 1.1, references herein to Company shall
also include Affiliates and Subsidiaries as the context requires.

	2.14
	"Covered Employee" means a Participant who is a "covered employee," as defined in Code Section 162(m) and the treasury
regulations promulgated under Code Section 162(m), or any successor statute.

	2.15
	"Covered Employee Annual Incentive Award" means an Award granted to a Covered Employee as described in Article 12.

	2.16
	"Director" means any individual who is a member of the Board of Directors of the Company.

	2.17
	"Effective Date" has the meaning set forth in Section 1.1.

	2.18
	"Effective Time" means the "Effective Time" as defined in the Combination Agreement dated as of July 21, 2004, by and among the
Company, Coors Canada Inc. and Molson Inc.

	2.19
	"Employee" means any employee of the Company, its Affiliates, and/or its Subsidiaries.

	2.20
	"Exchange Act" means the Securities Exchange Act of 1934, as amended from time to time, or any successor act thereto.

	2.21
	"Extraordinary Items" means (i) extraordinary, unusual, and/or nonrecurring items of gain or loss; (ii) gains or losses
on the disposition of a business; (iii) changes in tax or accounting regulations or laws; or (iv) the effect of a merger or acquisition, all of which must be identified in the audited
financial statements, including footnotes, or Management Discussion and Analysis section of the Company's annual report. 

3

 

	2.22
	"Fair Market Value" or "FMV" means a price that is based on the opening, closing,
actual, high, low, or average selling prices of a Share reported on the New York Stock Exchange ("NYSE"), or if not the NYSE, on the established stock exchange which is the principal exchange upon
which the Shares are traded on the applicable date, the preceding trading day, the next succeeding trading day, or an average of trading days, as determined by the Committee in its discretion. Unless
the Committee determines otherwise, if the Shares are traded over the counter at the time a determination of its Fair Market Value is required to be made hereunder, Fair Market Value shall be deemed
to be equal to the average between the reported high and low or closing bid and asked prices of a Share on the applicable date, or if not such trades were made that day then the most recent date on
which Shares were publicly traded. In the event Shares are not publicly trades at the time a determination of their value is required to be made hereunder, the determination of their Fair Market Value
shall be made by the Committee in such manner as it deems appropriate. Such definition(s) of FMV shall be specified in each Award Agreement and may differ depending on whether FMV is in reference to
the grant, exercise, vesting, settlement, or payout of an Award; provided, however that in the absence of such determination, Fair Market Value means the average of the high and low sales prices for a
Share as reported by the NYSE (or such other principal exchange) on the applicable date, or if no sales occurred that day, on the most recent date upon which sales did occur; and, provided further,
that upon a broker-assisted exercise of an Option, the FMV shall be the price at which the Shares are sold by the broker.

	2.23
	"Full-Value Award" means an Award other than in the form of an ISO, NQSO, or SAR, and which is settled by the issuance of
Shares.

	2.24
	"Freestanding SAR" means an SAR that is granted independently of any Options, as described in Article 7.

	2.25
	"Grant Price" means the price established at the time of grant of a SAR pursuant to Article 7, used to determine whether there
is any payment due upon exercise of the SAR.

	2.26
	"Incentive Stock Option" or "ISO" means an Option to purchase Shares granted under
Article 6 to an Employee and that is designated as an Incentive Stock Option and that is intended to meet the requirements of Code Section 422, or any successor provision.

	2.27
	"Insider" shall mean an individual who is, on the relevant date, an officer, or Director of the Company, or a more than ten percent
(10%) Beneficial Owner of any class of the Company's equity securities that is registered pursuant to Section 12 of the Exchange Act, as determined by the Board in accordance with
Section 16 of the Exchange Act.

	2.28
	"Nonemployee Director" means a Director who is not an Employee.

	2.29
	"Nonemployee Director Award" means any NQSO, SAR, or Full-Value Award granted, whether singly, in combination, or in
tandem, to a Participant who is a Nonemployee Director pursuant to such applicable terms, conditions, and limitations as the Board or Committee may establish in accordance with this Plan.

	2.30
	"Nonqualified Stock Option" or "NQSO" means an Option that is not intended to meet the
requirements of Code Section 422, or that otherwise does not meet such requirements.

	2.31
	"Option" means an Incentive Stock Option or a Nonqualified Stock Option, as described in Article 6.

	2.32
	"Option Price" means the price at which a Share may be purchased by a Participant pursuant to an Option. 

4

 

	2.33
	"Other Stock-Based Award" means an equity-based or equity-related Award not otherwise described by the terms of this Plan, granted
pursuant to Article 10.

	2.34
	"Participant" means any eligible individual as set forth in Article 5 to whom an Award is granted.

	2.35
	"Performance-Based Compensation" means compensation under an Award that is intended to satisfy the requirements of
Section 162(m) of the Code and the applicable treasury regulations thereunder for certain performance-based compensation paid to Covered Employees. Notwithstanding the foregoing, nothing in
this Plan shall be construed to mean that an Award which does not satisfy the requirements for performance-based compensation under Code Section 162(m) does not constitute performance-based
compensation for other purposes, including Code Section 409A.

	2.36
	"Performance Measures" means measures as described in Article 11 on which the performance goals are based and which are
approved by the Company's stockholders pursuant to this Plan in order to qualify certain Awards as Performance-Based Compensation.

	2.37
	"Performance Period" means the period of time during which the performance goals must be met in order to determine the degree of
payout and/or vesting with respect to an Award.

	2.38
	"Performance Share" means an Award under Article 9 herein and subject to the terms of the Plan, denominated in Shares, the
value of which at the time it is payable is determined as a function of the extent to which corresponding performance criteria have been achieved.

	2.39
	"Performance Unit" means an Award under Article 9 herein and subject to the terms of the Plan, denominated in units, the value
of which at the time it is payable is determined as a function of the extent to which corresponding performance criteria have been achieved.

	2.40
	"Period of Restriction" means the period when Restricted Stock or Restricted Stock Units are subject to a substantial risk of
forfeiture (based on the passage of time, the achievement of performance goals, or upon the occurrence of other events as determined by the Committee, in its discretion), as provided in
Article 8.

	2.41
	"Person" shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and
14(d) thereof, including a "group" as defined in Section 13(d) thereof.

	2.42
	"Plan" means this Molson Coors Brewing Company Incentive Compensation Plan.

	2.43
	"Plan Year" means the Company's fiscal year, unless the Committee has designated the calendar year, as the applicable Plan Year under
a particular Award.

	2.44
	"Restricted Stock" means an Award granted to a Participant pursuant to Article 8.

	2.45
	"Restricted Stock Unit" means an Award granted to a Participant pursuant to Article 8, except no Shares are actually awarded to
the Participant on the date of grant.

	2.46
	"Service Vesting Awards" means an Award, the vesting of which is contingent solely on the continued service of the Participant as an
Employee or a Director.

	2.47
	"Share" means a share of Class B common stock of the Company, $0.01 par value per share.

	2.48
	"Stock Appreciation Right" or "SAR" means an Award, designated as a SAR, pursuant to
the terms of Article 7 herein.

	2.49
	"Subsidiary" means any corporation or other entity, whether domestic or foreign, in which the Company has or obtains, directly or
indirectly, a proprietary interest of more than fifty percent (50%) by reason of stock ownership or otherwise. 

5

 

	2.50
	"Tandem SAR" means an SAR that is granted in connection with a related Option pursuant to Article 7 herein, the exercise of
which shall require forfeiture of the right to purchase a Share under the related Option (and when a Share is purchased under the Option, the Tandem SAR shall similarly be canceled).

	2.51
	"Third-Party Service Provider" means any consultant, agent, advisor, or independent contractor who renders services to the Company,
its Affiliates, and/or its Subsidiaries that (a) are not in connection with the offer and sale of the Company's securities in a capital raising transaction, and (b) do not directly or
indirectly promote or maintain a market for the Company's securities.

	2.52
	"Voting Trust" means the voting trust established under the Class A Common Stock Molson Coors Brewing Company Voting Trust
Agreement (as referred to in the Combination Agreement). 

Item 4. Article 3. Administration  

        3.1    General.    The Committee shall be responsible for
administering the Plan, subject to this Article 3 and the other provisions of the Plan. The Committee may employ attorneys, consultants, accountants, agents, and other individuals, any of whom
may be an Employee, and the Committee, the Company, and its officers and Directors shall be entitled to rely upon the advice, opinions, or valuations of any such individuals. All actions taken and all
interpretations and determinations made by the Committee shall be final and binding upon the Participants, the Company, and all other interested individuals. 

        3.2    Authority of the Committee.    The Committee shall have full
and exclusive discretionary power to interpret the terms and the intent of the Plan and any Award Agreement or other agreement or document ancillary to or in connection with the Plan, to determine
eligibility for Awards and to adopt such rules, regulations, forms, instruments, and guidelines for administering the Plan as the Committee may deem necessary or proper. Such authority shall include,
but not be limited to, selecting Award recipients, establishing all Award terms and conditions, including the terms and conditions set forth in Award Agreements, granting Awards as an alternative to
or as the form of payment for grants or rights earned or due under compensation plans or arrangements of the Company, and, subject to Article 19, adopting modifications and amendments to the
Plan or any Award Agreement, including without limitation, any that are necessary to comply with the laws of the countries and other jurisdictions in which the Company, its Affiliates, and/or its
Subsidiaries operate. 

        3.3    Delegation.    The Committee may delegate to one or more of its
members or to one or more officers of the Company, its Affiliates and/or its Subsidiaries or to one or more agents or advisors such administrative duties or powers as it may deem advisable, and the
Committee or any individuals to whom it has delegated duties or powers as aforesaid may employ one or more individuals to render advice with respect to any responsibility the Committee or such
individuals may have under the Plan. The Committee may, by resolution, authorize one or more officers of the Company to do one or both of the following on the same basis as can the Committee:
(a) designate Employees to be recipients of Awards; and (b) determine the size of any such Awards; provided, however, (i) the Committee shall not
delegate such responsibilities to any such officer for Awards granted to an Employee that is considered an Insider; (ii) the resolution providing such authorization sets forth the total number
of Awards such officer(s) may grant; and (iii) the officer(s) shall report periodically to the Committee regarding the nature and scope of the Awards granted pursuant to the authority
delegated. 

        3.4    Claims.    A Participant who wishes to appeal any determination
of the Committee concerning an Award granted pursuant to the Plan shall notify the Committee in a writing, which shall state the basis for the appeal. The appeal shall be filed with the Committee
within 30 days after the date the Participant received the notice from the Committee. The written appeal may be filed by the 

6

 

Participant's
authorized representative. The Committee shall review the appeal and issue its decision within 90 days after it receives the Participant's appeal. If the Committee needs
additional time to review the appeal, it shall notify the Participant in writing and specify when it expects to render its decision. After completion of its review, the Committee shall notify the
Participant of its decision in writing, which shall state the reasons for the Committee's decision. 

        If,
after the completion of the procedure set forth in the preceding paragraph, the Participant wishes to further pursue the appeal, the appeal shall be submitted to, and determined
through, binding arbitration in Denver, Colorado in accordance with the arbitration procedures of the American Arbitration Association ("AAA") existing at the time the arbitration is conducted, before
a single arbitrator chosen in accordance with AAA procedures. The decision of the arbitrator shall be enforceable as a court judgment. 

Item 5. Article 4. Shares Subject to the Plan and Maximum Awards  

        4.1    Number of Shares Available for Awards.    

	(a)
	Subject
to adjustment as provided in Section 4.4 herein, the maximum number of Shares available for issuance to Participants under the Plan (the "Share Authorization") shall be
5,000,000 Shares, plus the number of Shares that remain available for issuance under the Adolph Coors Company Equity Incentive Plan as of the Effective Date (increased by any Shares subject to any
then-outstanding award under such plan which upon the lapse, expiration or cancellation exercise or other settlement of such award are either not issued or are withheld by the Company).

	(b)
	Subject
to the limit set forth in Section 4.1(a) on the number of Shares that may be issued in the aggregate under the Plan, the maximum number of Shares that may be issued
pursuant to ISOs shall be 5,000,000. 

        4.2    Share Usage.    Shares covered by an Award shall only be
counted as used to the extent they are actually issued. Any Shares related to Awards which terminate by expiration, forfeiture, cancellation, or otherwise without the issuance of such Shares, are
settled in cash in lieu of Shares, or are exchanged with the Committee's permission, prior to the issuance of Shares, for Awards not involving Shares, shall be available again for grant under the
Plan. Moreover, if the Option Price of any Option granted under the Plan or the tax withholding requirements with respect to any Award granted under the Plan are satisfied by tendering Shares to the
Company (by either actual delivery or by attestation), or if an SAR is exercised, only the number of Shares issued, net of the Shares tendered, if any, will be deemed delivered for purposes of
determining the maximum number of Shares available for delivery under the Plan. The Shares available for issuance under the Plan may be authorized and unissued Shares or treasury Shares. 

        4.3    Annual Award Limits.    Unless and until the Committee
determines that an Award to a Covered Employee shall not be designed to qualify as Performance-Based Compensation, the following limits (each an "Annual Award Limit" and, collectively, "Annual Award
Limits") shall apply to grants of such Awards under the Plan: 

	(a)
	Options: The maximum aggregate number of Shares subject to Options granted in any one (1) Plan Year to any one
(1) Participant shall be 500,000 Shares.

	(b)
	SARs: The maximum number of Shares subject to Stock Appreciation Rights granted in any one (1) Plan Year to any one
(1) Participant shall be 500,000 Shares.

	(c)
	Restricted Stock or Restricted Stock Units: The maximum aggregate grant with respect to Awards of Restricted Stock or Restricted Stock
Units in any one (1) Plan Year to any one (1) Participant shall be 250,000. 

7

 

	(d)
	Performance Units or Performance Shares: The maximum aggregate Award of Performance Units or Performance Shares that any one
(1) Participant may receive in any one (1) Plan Year shall be 250,000 Shares if such Award is payable in Shares, or equal to the value of 250,000 Shares if such Award is payable in cash
or property other than Shares with such amount determined as of the earlier of the vesting date or the payout date.

	(e)
	Cash-Based Awards: The maximum aggregate amount awarded or credited with respect to Cash-Based Awards to any
one (1) Participant with respect to any one (1) Plan Year may not exceed $5,000,000.

	(f)
	Covered Employee Annual Incentive Award: The maximum aggregate amount awarded or credited in any one (1) Plan Year with respect
to a Covered Employee Annual Incentive Award may not exceed the lesser of five (5) times such Employee's annual base salary as in effect on March 1 of such Plan Year, or $5,000,000.

	(g)
	Other Stock-Based Awards: The maximum aggregate grant with respect to Other Stock-Based Awards pursuant to Section 10.2 in any
one (1) Plan Year to any one (1) Participant shall be 250,000 Shares. 

        4.4    Adjustments in Authorized Shares.    In the event of any
corporate event or transaction (including, but not limited to, a change in the Shares of the Company or the capitalization of the Company) after the Effective Date, such as a merger, consolidation,
reorganization, recapitalization, separation, stock dividend, stock split, reverse stock split, split up, spin-off, or other distribution of stock or property of the Company, combination
of Shares, exchange of Shares, dividend in kind, or other like change-in-capital structure or distribution (other than normal cash dividends) to stockholders of the Company, or
any similar corporate event or transaction, the Committee, in its sole discretion, in order to prevent dilution or enlargement of Participants' rights under the Plan, shall substitute or adjust, as
applicable, the number and kind of Shares that may be issued under the Plan or under particular forms of Awards, the number and kind of Shares subject to outstanding Awards, the Option Price or Grant
Price applicable to outstanding Awards, the Annual Award Limits, and other value determinations applicable to outstanding Awards. 

        The
Committee, in its sole discretion, may also make appropriate adjustments in the terms of any Awards under the Plan to reflect or related to such changes or distributions and to
modify any other terms of outstanding Awards, including modifications of performance goals and changes in the length of Performance Periods. The determination of the Committee as to the foregoing
adjustments, if any, shall be conclusive and binding on Participants under the Plan. 

        Subject
to the provisions of Article 19, without affecting the number of Shares reserved or available hereunder, the Committee may authorize the issuance or assumption of benefits
under this Plan in connection with any merger, consolidation, acquisition of property or stock, or reorganization upon such terms and conditions as it may deem appropriate, subject to compliance with
the ISO rules under Section 422 of the Code, where applicable. 

Item 6. Article 5. Eligibility and Participation  

        5.1    Eligibility.    Individuals eligible to participate in this
Plan include all Employees, Directors, and Third-Party Service Providers. 

        5.2    Actual Participation.    Subject to the provisions of the Plan,
the Committee may, from time to time, select from all eligible individuals, those individuals to whom Awards shall be granted and shall determine, in its sole discretion, the nature of, any and all
terms permissible by law, and the amount of each Award. 

8

 

Item 7. Article 6. Stock Options  

        6.1    Grant of Options.    Subject to the terms and provisions of the
Plan, Options may be granted to Participants in such number, and upon such terms, and at any time and from time to time as shall be determined by the Committee, in its sole discretion; provided, that
ISOs may be granted only to eligible Employees of the Company or of any parent or subsidiary corporation (as permitted by Section 422 of the Code and the treasury regulations thereunder). 

        6.2    Award Agreement.    Each Option grant shall be evidenced by an
Award Agreement that shall specify the Option Price, the maximum duration of the Option, the number of Shares to which the Option pertains, the conditions upon which an Option shall become vested and
exercisable, and such other provisions as the Committee shall determine which are not inconsistent with the terms of the Plan. The
Award Agreement also shall specify whether the Option is intended to be an ISO or a NQSO, and in the absence of any such specification, the Option shall be an NQSO. 

        6.3    Option Price.    The Option Price for each grant of an Option
under this Plan shall be as determined by the Committee and shall be specified in the Award Agreement. The Option Price shall be: (i) based on one hundred percent (100%) of the FMV of the
Shares on the date of grant, (ii) set at a premium to the FMV of the Shares on the date of grant, or (iii) indexed to the FMV of the Shares on the date of grant, with the index
determined by the Committee, in its discretion; provided, however, the Option Price on the date of grant must be at least equal to one hundred percent (100%) of the FMV of the Shares on the date of
grant. 

        6.4    Duration of Options.    Each Option granted to a Participant
shall expire at such time as the Committee shall determine at the time of grant; provided, however, no Option shall be exercisable later than the tenth (10th) anniversary date of its
grant. Notwithstanding the foregoing, for Options granted to Participants outside the United States, the Committee has the authority to grant Options that have a term greater than ten
(10) years. 

        6.5    Exercise of Options.    Options granted under this
Article 6 shall be exercisable at such times and be subject to such restrictions and conditions as the Committee shall in each instance approve, which terms and restrictions need not be the
same for each grant or for each Participant. 

        6.6    Payment.    Options granted under this Article 6 shall
be exercised by the delivery of a notice of exercise to the Company or an agent designated by the Company in a form specified or accepted by the Committee, or by complying with any alternative
procedures which may be authorized by the Committee, setting forth the number of Shares with respect to which the Option is to be exercised, accompanied by full payment for the Shares. 

        A
condition of the issuance of the Shares as to which an Option shall be exercised shall be the payment of the Option Price. The Option Price of any Option shall be payable to the
Company in full either: (a) in cash or its equivalent; (b) by tendering (either by actual delivery or attestation) previously acquired Shares having an aggregate Fair Market Value at the
time of exercise equal to the Option Price (provided that except as otherwise determined by the Committee, the Shares that are tendered must have been held by the Participant for at least six
(6) months (or such other period as the Committee may permit) prior to their tender to satisfy the Option Price if acquired under this Plan or any other compensation plan mentioned by the
Company, or have been purchased on the open market); (c) by a combination of (a) and (b); or (d) any other method approved or accepted by the Committee in its sole discretion,
including, without limitation, if the Committee so determines, a cashless (broker-assisted) exercise. 

        Subject
to any governing rules or regulations, as soon as practicable after receipt of written notification of exercise and full payment (including satisfaction of any applicable tax
withholding), the Company shall deliver to the Participant evidence of book entry Shares, or upon the Participant's 

9

 

request,
Share certificates in an appropriate amount based upon the number of Shares purchased under the Option(s). 

        Unless
otherwise determined by the Committee, all payments under all of the methods indicated above shall be paid in United States dollars. 

        6.7    Restrictions on Share Transferability.    The Committee may
impose such restrictions on any Shares acquired pursuant to the exercise of an Option granted under this Article 6 as it may deem advisable, including, without limitation, minimum holding
period requirements, restrictions under applicable federal securities laws, under the requirements of any stock exchange or market upon which such Shares are then listed and/or traded, or under any
blue sky or state securities laws applicable to such Shares. 

        6.8    Termination of Employment.    Each Participant's Award
Agreement shall set forth the extent to which the Participant shall have the right to exercise the Option following termination of the Participant's employment or provision of services to the Company,
its Affiliates, and/or its Subsidiaries, as the case may be. Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award Agreement entered into with
each Participant, need not be uniform among all Options issued pursuant to the Plan, and may reflect distinctions based on the reasons for termination. 

        6.9    Transferability of Options.    

	(a)
	Incentive Stock Options. No ISO granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or
hypothecated, other than by will or by the laws of descent and distribution. Further, all ISOs granted to a Participant under this Article 6 shall be exercisable during his lifetime only by
such Participant.

	(b)
	Nonqualified Stock Options. Except as otherwise provided in a Participant's Award Agreement or otherwise determined at any time by the
Committee, no NQSO granted under this Article 6 may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and
distribution; provided, that the Board or Committee may permit further transferability, on a general or a specific basis, and may impose conditions and limitations on any permitted transferability.
Further, except as otherwise provided in a Participant's Award Agreement or otherwise determined at any time by the Committee, or unless the Board or Committee decides to permit further
transferability, all NQSOs granted to a Participant under this Article 6 shall be exercisable during his lifetime only by such Participant. With respect to those NQSOs, if any, that are
permitted to be transferred to another individual, references in the Plan to exercise or payment of the Option Price by the Participant shall be deemed to include, as determined by the Committee, the
Participant's permitted transferee. 

        6.10    Notification of Disqualifying Disposition.    If any
Participant shall make any disposition of Shares issued pursuant to the exercise of an ISO under the circumstances described in Section 421(b) of the Code (relating to certain disqualifying
dispositions), such Participant shall notify the Company of such disposition within ten (10) days thereof. 

        6.11    Substituting SARs.    Only in the event the Company is not
accounting for equity compensation under APB Opinion No. 25, the Committee shall have the ability to substitute, without receiving Participant permission, SARs paid only in Shares (or SARs paid
in Shares or cash at the Committee's discretion) for outstanding Options; provided, the terms of the substituted SARs are the same as the terms for the Options and the aggregate difference between the
Fair Market Value of the underlying Shares and the Grant Price of the SARs is equivalent to the aggregate difference between the Fair Market Value of the underlying Shares and the Option Price of the
Options. If, in the opinion 

10

 

of
the Company's auditors, this provision creates adverse accounting consequences for the Company, it shall be considered null and void. 

Item 8. Article 7. Stock Appreciation Rights  

        7.1    Grant of SARs.    Subject to the terms and conditions of the
Plan, SARs may be granted to Participants at any time and from time to time as shall be determined by the Committee. The Committee may grant Freestanding SARs, Tandem SARs, or any combination of these
forms of SARs. 

        Subject
to the terms and conditions of the Plan, the Committee shall have complete discretion in determining the number of SARs granted to each Participant and, consistent with the
provisions of the Plan, in determining the terms and conditions pertaining to such SARs. 

        The
Grant Price for each grant of a Freestanding SAR shall be determined by the Committee and shall be specified in the Award Agreement. The Grant Price shall be: (i) based on one
hundred percent (100%) of the FMV of the Shares on the date of grant, (ii) set at a premium to the FMV of the Shares on the date of grant, or (iii) indexed to the FMV of the Shares on
the date of grant, with the index determined by the Committee, in its discretion; provided, however, the Grant Price on the date of grant must be at least equal to one hundred percent (100%) of the
FMV of the Shares on the date of grant. The Grant Price of Tandem SARs shall be equal to the Option Price of the related Option. 

        7.2    SAR Agreement.    Each SAR Award shall be evidenced by an Award
Agreement that shall specify the Grant Price, the term of the SAR, and such other provisions as the Committee shall determine. 

        7.3    Term of SAR.    The term of an SAR granted under the Plan shall
be determined by the Committee, in its sole discretion, and except as determined otherwise by the Committee and specified in the SAR Award Agreement, no SAR shall be exercisable later than the tenth
(10th ) anniversary date of its grant. Notwithstanding the foregoing, for SARs granted to Participants outside the United States, the Committee has the authority to grant
SARs that have a term greater than ten (10) years. 

        7.4    Exercise of Freestanding SARs.    Freestanding SARs may be
exercised upon whatever terms and conditions the Committee, in its sole discretion, imposes. 

        7.5.    Exercise of Tandem SARs.    Tandem SARs may be exercised for
all or part of the Shares subject to the related Option upon the surrender of the right to exercise the equivalent portion of the related Option. A Tandem SAR may be exercised only with respect to the
Shares for which its related Option is then exercisable. 

        Notwithstanding
any other provision of this Plan to the contrary, with respect to a Tandem SAR granted in connection with an ISO: (a) the Tandem SAR will expire no later than the
expiration of the underlying ISO; (b) the value of the payout with respect to the Tandem SAR may be for no more than one hundred percent (100%) of the excess of the Fair Market Value of the
Shares subject to the underlying ISO at the time the Tandem SAR is exercised over the Option Price of the underlying ISO; and (c) the Tandem SAR may be exercised only when the Fair Market Value
of the Shares subject to the ISO exceeds the Option Price of the ISO. 

11

   
        7.6    Payment of SAR Amount.    Upon the exercise of an SAR,
a
Participant shall be entitled to receive payment from the Company in an amount determined by multiplying: 

	(a)
	The
excess of the Fair Market Value of a Share on the date of exercise over the Grant Price; by

	(b)
	The
number of Shares with respect to which the SAR is exercised. 

        At
the discretion of the Committee, the payment upon SAR exercise may be in cash, Shares, or any combination thereof, or in any other manner approved by the Committee in its sole
discretion. The Committee's determination regarding the form of SAR payout shall be set forth in the Award Agreement pertaining to the grant of the SAR. 

        7.7    Termination of Employment.    Each Award Agreement shall set
forth the extent to which the Participant shall have the right to exercise the SAR following termination of the Participant's employment with or provision of services to the Company, its Affiliates,
and/or its Subsidiaries, as the case may be. Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award Agreement entered into with Participants, need
not be uniform among all SARs issued pursuant to the Plan, and may reflect distinctions based on the reasons for termination. 

        7.8    Nontransferability of SARs.    Except as otherwise provided in
a Participant's Award Agreement or otherwise determined at any time by the Committee, no SAR granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated,
other than by will or by the laws of descent and distribution. Further, except as otherwise provided in a Participant's Award Agreement or otherwise determined at any time by the Committee, all SARs
granted to a Participant under the Plan shall be exercisable during his lifetime only by such Participant. With respect to those SARs, if any, that are permitted to be transferred to another
individual, references in the Plan to exercise of the SAR by the Participant or payment of any amount to the Participant shall be deemed to include, as determined by the Committee, the Participant's
permitted transferee. 

        7.9    Other Restrictions.    The Committee shall impose such other
conditions and/or restrictions on any Shares received upon exercise of a SAR granted pursuant to the Plan as it may deem advisable or
desirable. These restrictions may include, but shall not be limited to, a requirement that the Participant hold the Shares received upon exercise of a SAR for a specified period of time. 

Item 9. Article 8. Restricted Stock and Restricted Stock Units  

        8.1    Grant of Restricted Stock or Restricted Stock Units.    Subject
to the terms and provisions of the Plan, the Committee, at any time and from time to time, may grant Shares of Restricted Stock and/or Restricted Stock Units to Participants in such amounts as the
Committee shall determine. Restricted Stock Units shall be similar to Restricted Stock except that no Shares are actually awarded to the Participant on the date of grant. 

        8.2    Restricted Stock or Restricted Stock Unit Agreement.    Each
Restricted Stock and/or Restricted Stock Unit grant shall be evidenced by an Award Agreement that shall specify the Period(s) of Restriction, the number of Shares of Restricted Stock or the number of
Restricted Stock Units granted, and such other provisions as the Committee shall determine. 

        8.3    Transferability.    Except as provided in this Plan or an Award
Agreement, the Shares of Restricted Stock and/or Restricted Stock Units granted herein may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated until the end of the
applicable Period of Restriction established by the Committee and specified in the Award Agreement (and in the case of Restricted Stock Units until the date of delivery or other payment), or upon
earlier satisfaction of any other conditions, as specified by the Committee, in its sole discretion, and set forth in the Award Agreement or otherwise at any time by the Committee. All rights with
respect to the Restricted Stock and/or 

12

 

Restricted
Stock Units granted to a Participant under the Plan shall be available during his lifetime only to such Participant, except as otherwise provided in an Award Agreement or at any time by the
Committee. 

        8.4    Other Restrictions.    The Committee shall impose such other
conditions and/or restrictions on any Shares of Restricted Stock or Restricted Stock Units granted pursuant to the Plan as it may deem advisable including, without limitation, a requirement that
Participants pay a stipulated purchase price for each Share of Restricted Stock or each Restricted Stock Unit, restrictions based upon the achievement of specific performance goals,
time-based restrictions on vesting following the attainment of the performance goals, time-based restrictions, and/or restrictions under applicable laws or under the
requirements of any stock exchange or market upon which such
Shares are listed or traded, or holding requirements or sale restrictions placed on the Shares by the Company upon vesting of such Restricted Stock or Restricted Stock Units. 

        To
the extent deemed appropriate by the Committee, the Company may retain the certificates representing Shares of Restricted Stock in the Company's possession until such time as all
conditions and/or restrictions applicable to such Shares have been satisfied or lapse. 

        Except
as otherwise provided in this Article 8, Shares of Restricted Stock covered by each Restricted Stock Award shall become freely transferable by the Participant after all
conditions and restrictions applicable to such Shares have been satisfied or lapse (including satisfaction of any applicable tax withholding obligations), and except as expressly provided by the
Committee in the Award Agreement, Restricted Stock Units shall be paid in Shares. 

        8.5    Certificate Legend.    In addition to any legends placed on
certificates pursuant to Section 8.4, each certificate representing Shares of Restricted Stock granted pursuant to the Plan may bear a legend such as the following or as otherwise determined by
the Committee in its sole discretion: 

        The
sale or transfer of Shares of stock represented by this certificate, whether voluntary, involuntary, or by operation of law, is subject to certain restrictions on transfer as set
forth in the Molson Coors Brewing Company 2004 Stock and Incentive Compensation Plan, and in the associated Award Agreement. A copy of the Plan and such Award Agreement may be obtained from Molson
Coors Brewing Company. 

        8.6    Voting Rights.    Unless otherwise determined by the Committee
and set forth in a Participant's Award Agreement, to the extent permitted or required by law, as determined by the Committee, Participants holding Shares of Restricted Stock granted hereunder may be
granted the right to exercise full voting rights with respect to those Shares during the Period of Restriction. A Participant shall have no voting rights with respect to any Restricted Stock Units
granted hereunder. 

        8.7    Termination of Employment.    Each Award Agreement shall set
forth the extent to which the Participant shall have the right to retain Restricted Stock and/or Restricted Stock Units following termination of the Participant's employment with or provision of
services to the Company, its Affiliates, and/or its Subsidiaries, as the case may be. Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award
Agreement entered into with each Participant, need not be uniform among all Shares of Restricted Stock or Restricted Stock Units issued pursuant to the Plan, and may reflect distinctions based on the
reasons for termination. 

        8.8    Section 83(b) Election.    The Committee may provide in
an Award Agreement that the Award of Restricted Stock is conditioned upon the Participant making or refraining from making an election with respect to the Award under Section 83(b) of the Code.
If a Participant makes an election pursuant to Section 83(b) of the Code concerning a Restricted Stock Award, the Participant shall be required to file promptly a copy of such election with the
Company. 

13

 

Item 10. Article 9. Performance Units/Performance Shares  

        9.1    Grant of Performance Units/Performance Shares.    Subject to
the terms and provisions of the Plan, the Committee, at any time and from time to time, may grant Performance Units and/or Performance Shares to Participants in such amounts and upon such terms as the
Committee shall determine. 

        9.2    Value of Performance Units/Performance Shares.    Each
Performance Unit shall have an initial value that is established by the Committee at the time of grant. Each Performance Share shall have an initial value equal to the Fair Market Value of a Share on
the date of grant. The Committee shall set performance goals in its discretion which, depending on the extent to which they are met, will determine the value and/or number of Performance
Units/Performance Shares that will be paid out to the Participant. 

        9.3    Earning of Performance Units/Performance Shares.    Subject to
the terms of this Plan, after the applicable Performance Period has ended, the holder of Performance Units/Performance Shares shall be entitled to receive payout on the value and number of Performance
Units/Performance Shares earned by the Participant over the Performance Period, to be determined as a function of the extent to which the corresponding performance goals have been achieved. 

        9.4    Form and Timing of Payment of Performance Units/Performance
Shares.    Payment of earned Performance Units/Performance Shares shall be as determined by the Committee and as evidenced in the Award Agreement. Subject to the
terms of the Plan, the Committee, in its sole discretion, may pay earned Performance Units/Performance Shares in the form of cash or in Shares (or in a combination thereof) equal to the value of the
earned Performance Units/Performance Shares at the close of the applicable Performance Period, or as soon as practicable after the end of the Performance Period. Any Shares may be granted subject to
any restrictions deemed appropriate by the Committee. The determination of the Committee with respect to the form of payout of such Awards shall be set forth in the Award Agreement pertaining to the
grant of the Award. 

        9.5    Termination of Employment.    Each Award Agreement shall set
forth the extent to which the Participant shall have the right to retain Performance Units and/or Performance Shares following termination of the Participant's employment with or provision of services
to the Company, its Affiliates, and/or its Subsidiaries, as the case may be. Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award Agreement
entered into with each Participant, need not be uniform among all Awards of Performance Units or Performance Shares issued pursuant to the Plan, and may reflect distinctions based on the reasons for
termination. 

        9.6    Nontransferability.    Except as otherwise provided in a
Participant's Award Agreement or otherwise determined at any time by the Committee, Performance Units/Performance Shares may not be sold, transferred, pledged, assigned, or otherwise alienated or
hypothecated, other than by will or by the laws of descent and distribution. Further, except as otherwise provided in a Participant's Award Agreement or otherwise determined at any time by the
Committee, a Participant's rights under the Plan shall be exercisable during his lifetime only by such Participant. 

Item 11. Article 10. Cash-Based Awards and Other Stock-Based Awards  

        10.1    Grant of Cash-Based Awards.    Subject to the
terms and provisions of the Plan, the Committee, at any time and from time to time, may grant Cash-Based Awards to Participants in such amounts and upon such terms, including the
achievement of specific performance goals, as the Committee may determine. 

        10.2    Other Stock-Based Awards.    The Committee may grant other
types of equity-based or equity-related Awards not otherwise described by the terms of this Plan (including the grant or offer for sale of unrestricted Shares) in such amounts and subject to such
terms and conditions, as the 

14

 

Committee
shall determine. Such Awards may involve the transfer of actual Shares to Participants, or payment in cash or otherwise of amounts based on the value of Shares and may include, without
limitation, Awards designed to comply with or take advantage of the applicable local laws of jurisdictions other than the United States. 

        10.3    Value of Cash-Based and Other Stock-Based
Awards.    Each Cash-Based Award shall specify a payment amount or payment range as determined by the Committee. Each Other Stock-Based Award shall be
expressed in terms of Shares or units based on Shares, as determined by the Committee. The Committee may establish performance goals in its
discretion. If the Committee exercises its discretion to establish performance goals, the number and/or value of Cash-Based Awards or Other Stock-Based Awards that will be paid out to the
Participant will depend on the extent to which the performance goals are met. 

        10.4    Payment of Cash-Based Awards and Other Stock-Based
Awards.    Payment, if any, with respect to a Cash-Based Award or an Other Stock-Based Award shall be made in accordance with the terms of the Award, in
cash or Shares as the Committee determines. 

        10.5    Termination of Employment.    The Committee shall determine
the extent to which the Participant shall have the right to receive Cash-Based Awards or Other Stock-Based Awards following termination of the Participant's employment with or provision of
services to the Company, its Affiliates, and/or its Subsidiaries, as the case may be. Such provisions shall be determined in the sole discretion of the Committee, such provisions may be included in an
Award Agreement entered into with each Participant, but need not be uniform among all Awards of Cash-Based Awards or Other Stock-Based Awards issued pursuant to the Plan, and may reflect
distinctions based on the reasons for termination. 

        10.6    Nontransferability.    Except as otherwise determined by the
Committee, neither Cash-Based Awards nor Other Stock-Based Awards may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of
descent and distribution. Further, except as otherwise provided by the Committee, a Participant's rights under the Plan, if exercisable, shall be exercisable during his lifetime only by such
Participant. With respect to those Cash-Based Awards or Other Stock-Based Awards, if any, that are permitted to be transferred to another individual, references in the Plan to exercise or
payment of such Awards by or to the Participant shall be deemed to include, as determined by the Committee, the Participant's permitted transferee. 

Item 12. Article 11. Performance Measures  

        11.1    Performance Measures.    Unless and until the Committee
proposes for shareholder vote and the stockholders approve a change in the general Performance Measures set forth in this Article 11, the performance goals upon which the payment or vesting of
an Award to a Covered Employee (other than a Covered Employee Annual Incentive Award awarded or credited pursuant to Article 12) that is intended to qualify as Performance-Based Compensation
shall be limited to the following Performance Measures: 

	(a)
	Net
earnings or net income (before or after taxes);

	(b)
	Earnings
per share;

	(c)
	Net
sales or revenue growth;

	(d)
	Net
operating profit;

	(e)
	Return
measures (including, but not limited to, return on assets, capital, invested capital, equity, revenue, or sales);

	(f)
	Cash
flow (including, but not limited to, operating cash flow, free cash flow, and cash flow return on equity); 

15

 

	(g)
	Earnings
before or after taxes, interest, depreciation, and/or amortization;

	(h)
	Gross
or operating margins;

	(i)
	Productivity
ratios;

	(j)
	Share
price (including, but not limited to, growth measures and total shareholder return);

	(k)
	Expense
targets;

	(l)
	Margins;

	(m)
	Operating
efficiency;

	(n)
	Market
share;

	(o)
	Customer
satisfaction; and

	(p)
	Balance
sheet measures (including but not limited to, working capital amounts and levels of short and long-term debt). 

Any
Performance Measure(s) may be used to measure the performance of the Company, its Affiliates, and/or its Subsidiaries as a whole or any business unit of the Company, its Affiliates, and/or its
Subsidiaries or any combination thereof, as the Committee may deem appropriate, or any of the above Performance Measures as compared to the performance of a group of comparator companies, or published
or special index that the Committee, in its sole discretion, deems appropriate, and, may, but need not be, based on a change or an increase or positive result. The Committee also has the authority to
provide for accelerated vesting of any Award based on the achievement of performance goals pursuant to the Performance Measures specified in this Article 11 or such other factors as the
Committee shall determine. 

        11.2    Evaluation of Performance.    The Committee may provide in any
such Award that any evaluation of performance may include or exclude any of the following events that occurs during a Performance Period: (a) asset write-downs, (b) litigation or claim
judgments or settlements, (c) the effect of changes in tax laws, accounting principles, or other laws or provisions affecting reported results, (d) any reorganization and restructuring
programs, (e) extraordinary nonrecurring items as described in Accounting Principles Board Opinion No. 30 (or any successor provision) and/or in management's discussion and analysis of
financial condition and results of operations appearing in the Company's annual report to stockholders for the applicable year, (f) acquisitions or divestitures, (g) foreign exchange
gains and losses, and (h) Extraordinary Items. To the extent such inclusions or exclusions affect Awards
to Covered Employees, they shall be prescribed in a form that meets the requirements of Code Section 162(m) for deductibility. 

        11.3    Adjustment of Performance-Based Compensation.    Awards that
are intended to qualify as Performance-Based Compensation may not be adjusted upward. The Committee shall retain the discretion to adjust such Awards downward, either on a formula or discretionary
basis or any combination, as the Committee determines. 

        11.4    Committee Discretion.    In the event that applicable tax
and/or securities laws change to permit Committee discretion to alter the governing Performance Measures without obtaining stockholder approval of such changes, the Committee shall have sole
discretion to make such changes without obtaining stockholder approval. In addition, in the event that the Committee determines that it is advisable to grant performance-based Awards that are not
intended to qualify as Performance-Based Compensation, the Committee may make such grants without satisfying the requirements of Code Section 162(m) and base vesting on Performance Measures
other than those set forth in Section 11.1. 

16

 

Item 13. Article 12. Covered Employee Annual Incentive Award  

        12.1    Establishment of Annual Incentive Pool.    The Committee may
designate Covered Employees who are eligible to receive a monetary payment in any Plan Year based on a percentage of an incentive pool determined by reference to one or more Performance Measures set
forth in Section 11.1. The Committee shall allocate an incentive pool percentage to each designated Covered Employee for each Plan Year, provided the sum of the incentive pool percentages for
all Covered Employees cannot exceed one hundred percent (100%) of the total pool. 

        12.2    Determination of Covered Employees' Portions.    As soon as
possible after the determination of the incentive pool for a Plan Year, the Committee shall calculate each Covered Employee's allocated portion of the incentive pool based upon the percentage
established at the beginning of the Plan Year. Each Covered Employee's incentive award then shall be determined by the Committee based on the Covered Employee's allocated portion of the incentive pool
subject to adjustment in the sole discretion of the Committee. In no event may the portion of the incentive pool allocated to a Covered Employee be increased in any way, including as a result of the
reduction of any other Covered Employee's allocated portion. The Committee shall retain the discretion to adjust such Awards downward. 

Item 14. Article 13. Nonemployee Director Awards  

        All Awards to Nonemployee Directors shall be determined by the Board or Committee. The terms and conditions of any grant to any such Nonemployee Director shall be
set forth in an Award Agreement. 

Item 15. Article 14. Dividend Equivalents  

        Any Participant selected by the Committee may be granted dividend equivalents based on the dividends declared on Shares that are subject to any Award, to be
credited as of dividend payment dates, during the period between the date the Award is granted and the date the Award is exercised, vests or expires, as determined by the Committee. Such dividend
equivalents shall be converted to cash or additional Shares by such formula and at such time and subject to such limitations as may be determined by the Committee. 

Item 16. Article 15. Beneficiary Designation  

        Each Participant under the Plan may, from time to time, name any beneficiary or beneficiaries (who may be named contingently or successively) to whom any benefit
under the Plan is to be paid in case of his death before he receives any or all of such benefit. Each such designation shall revoke all prior designations by the same Participant, shall be in a form
prescribed by the Committee, and will be effective only when filed by the Participant in writing with the Company during the Participant's lifetime. In the absence of any such designation, benefits
remaining unpaid at the Participant's death shall be paid to the Participant's estate. 

Item 17. Article 16. Deferrals  

        The Committee may permit or require a Participant to defer such Participant's receipt of the payment of cash or the delivery of Shares that would otherwise be due
to such Participant by virtue of the exercise of an Option or SAR, the lapse or waiver of restrictions with respect to Restricted Stock or Restricted Stock Units, or the satisfaction of any
requirements or performance goals with respect to Performance Shares, Performance Units, Covered Employee Annual Incentive Awards, Other Stock-Based Awards, or Cash-Based Awards. If any
such deferral election is required or permitted, the Committee shall, in its sole discretion, establish rules and procedures for such payment deferrals. 

17

 

Item 18. Article 17. Rights of Participants  

        17.1    Employment.    Nothing in the Plan or an Award Agreement shall
interfere with or limit in any way the right of the Company, its Affiliates, and/or its Subsidiaries, to terminate any Participant's employment or service on the Board or to the Company at any time or
for any reason not prohibited by law, nor confer upon any Participant any right to continue his employment or service as a Director or Third-Party Service Provider for any specified period of time. 

        Neither
an Award nor any benefits arising under this Plan shall constitute an employment contract with the Company, its Affiliates, and/or its Subsidiaries and, accordingly, subject to
Articles 3 and 19, this Plan and the benefits hereunder may be terminated at any time in the sole and exclusive discretion of the Committee without giving rise to any liability on the part of the
Company, its Affiliates, and/or its Subsidiaries. 

        17.2    Participation.    No individual shall have the right to be
selected to receive an Award under this Plan, or, having been so selected, to be selected to receive a future Award. 

        17.3    Rights as a Stockholder.    Except as otherwise provided
herein, a Participant shall have none of the rights of a shareholder with respect to Shares covered by any Award until the Participant becomes the record holder of such Shares. 

Item 19. Article 18. Change in Control  

        18.1    Change in Control of the Company.    Notwithstanding any other
provision of this Plan to the contrary, the provisions of this Article 18 shall apply in the event of a Change in Control, unless otherwise determined by the Committee in connection with the
grant of an Award as reflected in the applicable Award Agreement. 

        Upon
a Change in Control, all then-outstanding Options and Stock Appreciation Rights shall become fully vested and exercisable, and all other then-outstanding
Awards that are Service Vesting Awards shall vest in full and be free of restrictions, except to the extent that another Award meeting the requirements of Section 18.2 (a "Replacement Award")
is provided to the Participant pursuant to Section 4.4 to replace such Award (the "Replaced Award"). The treatment of any other Awards shall be as determined by the Committee and reflected in
the applicable Award Agreement. 

        18.2    Replacement Awards.    An Award shall meet the conditions of
this Section 18.2 (and hence qualify as a Replacement Award) if: (i) it has a value at least equal to the value of the Replaced Award; (ii) it relates to publicly traded equity
securities of the Company or its successor in the Change in Control or another entity that is affiliated with the Company or its successor following the Change in Control; and (iii) its other
terms and conditions are not less favorable to the Participant than the terms and conditions of the Replaced Award (including the provisions that would apply in the event of a subsequent Change in
Control). Without limiting the generality of the foregoing, the Replacement Award may take the form of a continuation of the Replaced Award if the requirements of the preceding sentence are satisfied.
The determination of whether the conditions of this Section 18.2 are satisfied shall be made by the Committee, as constituted immediately before the Change in Control, in its sole discretion. 

        18.3    Termination of Employment.    Upon a termination of employment
or termination of directorship of a Participant occurring in connection with or during the period of two (2) years after such Change in Control, other than for Cause, (i) all Replacement
Awards held by the Participant shall become fully vested and (if applicable) exercisable and free of restrictions, and (ii) all Options and Stock Appreciation Rights held by the Participant
immediately before the termination of employment or termination of directorship that the Participant held as of the date of the Change in Control or that constitute Replacement Awards shall remain
exercisable for not less than one (1) year following such termination or until the expiration of the stated term of such Option or SAR, whichever period is 

18

 

shorter;
provided, that if the applicable Award Agreement provides for a longer period of exercisability, that provision shall control. 

Item 20. Article 19. Amendment, Modification, Suspension, and Termination  

        19.1    Amendment, Modification, Suspension, and
Termination.    Subject to Section 19.3, the Committee may, at any time and from time to time, alter, amend, modify, suspend, or terminate the Plan and any
Award Agreement in whole or in part; provided, however, that, without the prior approval of the Company's stockholders and except as provided in Sections 4.4 and 6.11, Options or SARs issued under the
Plan will not be repriced, replaced, or regranted through cancellation, or by lowering the Option Price of a previously granted Option or the Grant Price of a previously granted SAR, and no amendment
of the Plan shall be made without shareholder approval if shareholder approval is required by law, regulation, or stock exchange rule; including, but not limited to, the Exchange Act, the Code, and,
if applicable, the New York Stock Exchange Listed Company Manual/the Nasdaq issuer rules. 

        19.2    Adjustment of Awards Upon the Occurrence of Certain Unusual or Nonrecurring
Events.    The Committee may make adjustments in the terms and conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurring events
(including, without limitation, the events described in Section 4.4 hereof) affecting the Company or the financial statements of the Company or of changes in applicable laws, regulations, or
accounting principles, whenever the Committee determines that such adjustments are appropriate in order to prevent unintended dilution or enlargement of the benefits or potential benefits intended to
be made available under the Plan. The determination of the Committee as to the foregoing adjustments, if any, shall be conclusive and binding on Participants under the Plan. 

        19.3    Awards Previously Granted.    Notwithstanding any other
provision of the Plan to the contrary, no termination, amendment, suspension, or modification of the Plan or an Award Agreement shall adversely affect in any material way any Award previously granted
under the Plan, without the written consent of the Participant holding such Award. 

Item 21. Article 20. Withholding  

        20.1    Tax Withholding.    The Company shall have the power and the
right to deduct or withhold, or require a Participant to remit to the Company, the minimum statutory amount to satisfy federal, state, and local taxes, domestic or foreign, required by law or
regulation to be withheld with respect to any taxable event arising as a result of this Plan. 

        20.2    Share Withholding.    With respect to withholding required
upon the exercise of Options or SARs, upon the lapse of restrictions on Restricted Stock and Restricted Stock Units, or upon the achievement of performance goals related to Performance Shares, or any
other taxable event arising as a result of an Award granted hereunder, Participants may elect, subject to the approval of the Committee, to satisfy the withholding requirement, in whole or in part, by
having the Company withhold Shares having a Fair Market Value on the date the tax is to be determined equal to the minimum statutory total tax that could be imposed on the transaction. All such
elections shall be irrevocable, made in writing, and signed by the Participant, and shall be subject to any restrictions or limitations that the Committee, in its sole discretion, deems appropriate. 

Item 22. Article 21. Successors  

        All obligations of the Company under the Plan with respect to Awards granted hereunder shall be binding on any successor to the Company, whether the existence of
such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company. 

19

 

Item 23. Article 22. General Provisions  

        22.1    Forfeiture Events.    

	(a)
	The
Committee may specify in an Award Agreement that the Participant's rights, payments, and benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture,
or recoupment upon the occurrence of certain specified events, in addition to any otherwise applicable vesting or performance conditions of an Award. Such events may include, but shall not be limited
to, termination of employment for Cause, termination of the Participant's provision of services to the Company, its Affiliates, and/or its Subsidiary, violation of material Company, Affiliate, and/or
Subsidiary policies, breach of noncompetition, confidentiality, or other restrictive covenants that may apply to the Participant, or other conduct by the Participant that is detrimental to the
business or reputation of the Company, its Affiliates, and/or its Subsidiaries.

	(b)
	If
the Company is required to prepare an accounting restatement due to the material noncompliance of the Company, as a result of misconduct, with any financial reporting requirement
under the securities laws, if the Participant knowingly or grossly negligently engaged in the misconduct, or knowingly or grossly negligently failed to prevent the misconduct, or if the Participant is
one of the individuals subject to automatic forfeiture under Section 304 of the Sarbanes-Oxley Act of 2002 (and not otherwise exempted), the Participant shall reimburse the Company the amount
of any payment in settlement of an Award earned or accrued during the twelve- (12-) month period following the first public issuance or filing with the United States Securities and
Exchange Commission (whichever just occurred) of the financial document embodying such financial reporting requirement. 

        22.2    Legend.    The certificates for Shares may include any legend
which the Committee deems appropriate to reflect any restrictions on transfer of such Shares. 

        22.3    Gender and Number.    Except where otherwise indicated by the
context, any masculine term used herein also shall include the feminine, the plural shall include the singular, and the singular shall include the plural. 

        22.4    Severability.    In the event any provision of the Plan shall
be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid
provision had not been included. 

        22.5    Requirements of Law.    The granting of Awards and the
issuance of Shares under the Plan shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be
required. 

        22.6    Delivery of Title.    The Company shall have no obligation to
issue or deliver evidence of title for Shares issued under the Plan prior to: 

	(a)
	Obtaining
any approvals from governmental agencies that the Company determines are necessary or advisable; and

	(b)
	Completion
of any registration or other qualification of the Shares under any applicable national or foreign law or ruling of any governmental body that the Company determines to be
necessary or advisable. 

        22.7    Inability to Obtain Authority.    The inability of the Company
to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company's counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall
relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained. 

20

 

        22.8    Investment Representations.    The Committee may require any
individual receiving Shares pursuant to an Award under this Plan to represent and warrant in writing that the individual is acquiring the Shares for investment and without any present intention to
sell or distribute such Shares. 

        22.9    Employees Based Outside of the United
States.    Notwithstanding any provision of the Plan to the contrary, in order to comply with the laws in other countries in which the Company, its Affiliates, and/or
its Subsidiaries operate or have Employees, Directors, or Third-Party Service Providers, the Committee, in its sole discretion, shall have the power and authority to: 

	(a)
	Determine
which Affiliates and Subsidiaries shall be covered by the Plan;

	(b)
	Determine
which Employees and/or Directors, or Third-Party Service Providers outside the United States are eligible to participate in the Plan;

	(c)
	Modify
the terms and conditions of any Award granted to Employees and/or Directors or Third-Party Service Providers outside the United States to comply with applicable foreign laws;

	(d)
	Establish
subplans and modify exercise procedures and other terms and procedures, to the extent such actions may be necessary or advisable. Any subplans and modifications to Plan
terms and procedures established under this Section 22.9 by the Committee shall be attached to this Plan document as appendices; and

	(e)
	Take
any action, before or after an Award is made, that it deems advisable to obtain approval or comply with any necessary local government regulatory exemptions or approvals. 

        Notwithstanding
the above, the Committee may not take any actions hereunder, and no Awards shall be granted, that would violate applicable law. 

        22.10    Uncertificated Shares.    To the extent that the Plan
provides for issuance of certificates to reflect the transfer of Shares, the transfer of such Shares may be affected on a noncertificated basis, to the extent not prohibited by applicable law or the
rules of any stock exchange. 

        22.11    Unfunded Plan.    Participants shall have no right, title, or
interest whatsoever in or to any investments that the Company, its Affiliates, and/or its Subsidiaries may make to aid it in meeting its obligations under the Plan. Nothing contained in the Plan, and
no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind, or a fiduciary relationship between the Company and any Participant, beneficiary, legal
representative, or any other individual. To the extent that any individual acquires a right to receive payments from the Company, its Affiliates, and/or its Subsidiaries under the Plan, such right
shall be no greater than the right of an unsecured general creditor of the Company, its Affiliates, and/or its Subsidiaries, as the case may be. All payments to be made hereunder shall be paid from
the general funds of the Company, its Affiliates, and/or its Subsidiaries, as the case may be and no special or separate fund shall be established and no segregation of assets shall be made to assure
payment of such amounts except as expressly set forth in the Plan. 

        22.12    No Fractional Shares.    No fractional Shares shall be issued
or delivered pursuant to the Plan or any Award. The Committee shall determine whether cash, Awards, or other property shall be issued or paid in lieu of fractional Shares or whether such fractional
Shares or any rights thereto shall be forfeited or otherwise eliminated. 

        22.13    Retirement and Welfare Plans.    Neither Awards made under
the Plan nor Shares or cash paid pursuant to such Awards, except pursuant to Covered Employee Annual Incentive Awards, may be included as "compensation" for purposes of computing the benefits payable
to any Participant under the Company's, its Affiliates', and/or its Subsidiaries' retirement plans (both qualified and nonqualified) 

21

 

or
welfare benefit plans unless such other plan expressly provides that such compensation shall be taken into account in computing a Participant's benefit. 

        22.14    Nonexclusivity of the Plan.    The adoption of this Plan
shall not be construed as creating any limitations on the power of the Board or Committee to adopt such other compensation arrangements as it may deem desirable for any Participant. 

        22.15    No Constraint on Corporate Action.    Nothing in this Plan
shall be construed to: (i) limit, impair, or otherwise affect the Company's, its Affiliates', and/or its Subsidiaries' right or power to make adjustments, reclassifications, reorganizations, or
changes of its capital or business structure, or to merge or consolidate, or dissolve, liquidate, sell, or transfer all or any part of its business or assets; or, (ii) limit the right or power
of the Company, its Affiliates, and/or its Subsidiaries to take any action which such entity deems to be necessary or appropriate. 

        22.16    Governing Law.    The Plan and each Award Agreement shall be
governed by the laws of the State of Delaware, excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of the Plan to the substantive law
of another jurisdiction. Unless otherwise provided in the Award Agreement, recipients of an Award under the Plan are deemed to submit to the exclusive jurisdiction and venue of the federal or state
courts of Colorado, to resolve any and all issues that may arise out of or relate to the Plan or any related Award Agreement. 

        22.17    Indemnification.    Subject to requirements of Delaware law,
each individual who is or shall have been a member of the Board, or a committee appointed by the Board, or an officer of the Company to whom authority was delegated in accordance with
Article 3, shall be indemnified and held harmless by the Company against and from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him in connection with
or resulting from any claim, action, suit, or proceeding to which he may be a party or in which he may be involved by reason of any action taken or failure to act under the Plan and against and from
any and all amounts paid by him in settlement thereof, with the Company's approval, or paid by him in satisfaction of any judgment in any such action, suit, or proceeding against him, provided he
shall give the Company an opportunity, at its own expense, to handle and defend the same before he undertakes to handle and defend it on his own behalf, unless such loss, cost, liability, or expense
is a result of his own willful misconduct or except as expressly provided by Delaware law. 

        The
foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such individuals may be entitled under the Company's Certificate of
Incorporation of Bylaws, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless. 

22

QuickLinks

PART II Molson Coors Brewing Company Incentive Compensation Plan

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