Document:

Cott Corporation

 

Exhibit 10.6

COTT CORPORATION

AMENDED AND RESTATED

RETENTION, SEVERANCE AND NON-COMPETITION PLAN

Cott Corporation, a company amalgamated under the laws of Canada, including any subsidiaries,
affiliates, and related corporations (the “Corporation”) hereby adopts this Amended and Restated
Retention, Severance and Non-Competition Plan (the “Plan”) on June 25, 2007 for the benefit of
certain key employees (as designated by the Human Resources and Compensation Committee) who are in
a position to contribute materially to the success of the Corporation. This Plan amends and
restates in its entirety the plan adopted on May 11, 2007.

	1.	 	Purpose. The Corporation believes that its ability to retain and motivate key
employees may be adversely affected if, as a means of enhancing shareholder value, the
Corporation considers or enters into a Change of Control (as defined below) transaction. For
this reason, the Corporation has adopted the Plan with its principal purpose to: (i) assure
that the Corporation will have the continued dedication and objectivity of its key employees,
notwithstanding the possibility, threat or occurrence of a Change of Control and their
termination of employment; and (ii) to provide its key employees with an incentive to continue
employment with the Corporation and to motivate its key employees to maximize the value of the
Corporation upon a Change of Control for the benefit of its stockholders. The Plan is
maintained primarily for the purpose of providing deferred compensation for a select group of
key employees of the Corporation (the “Participants”) as determined by the Corporation’s Human
Resources and Compensation Committee.

	2.	 	Certain Defined Terms. Certain capitalized terms used in the Plan have the meaning
set forth in Section 10 of the Plan.

	3.	 	Payments and Entitlements Upon an Involuntary Termination following a Change of
Control.

	 	(a)	 	Subject to Section 3(b), in the event that a Participant’s employment
terminates as a result of an Involuntary Termination at any time during the Change of
Control Window, the Participant shall be entitled to the following payments and
entitlements:

	 	(i)	 	Cash Severance Payment. The Participant shall
receive a cash payment in an amount (the “Severance Amount”) equal to the
product of: (a) the sum of the Participant’s Annual Base Salary, annual car
allowance and annual bonus at target for the year in which the Involuntary
Termination occurs, and (b) the Participant’s Severance Multiple. The
Severance Amount payable pursuant to this Section 3(a)(i) shall be paid in a
lump sum, less all applicable withholding taxes, within 120 days of the
Involuntary Termination. The Severance Amount shall not be taken into
account for

 

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	 	 	 	purposes of determining benefits under any other qualified or non-qualified
plans of the Corporation.

	 	(ii)	 	Continued Benefits. The Participant shall be
entitled, to the extent the Corporation may do so legally and in accordance
with the applicable benefit plans in effect from time to time, to continued
participation in the benefits plans for a period equal to the product of:
(a) one year and (b) the Participant’s Severance Multiple.
	 
	 	(iii)	 	Accelerated Vesting. The Participant’s rights
under and in respect of the Corporation’s equity incentive plans in effect
from time to time shall, subject to the terms of those plans, fully vest and
become exercisable in accordance with the terms of those plans as of the
later of the date of the Involuntary Termination or the Change of Control.
	 
	 	(iv)	 	Accrued Salary and Vacation. The Participant
shall be paid all salary and accrued vacation pay earned through the date of
such Participant’s date of Involuntary Termination, less all applicable
withholding taxes. Such payment shall be made as part of the Participant’s
last regular payroll payment.
	 
	 	(v)	 	Pro-rata Bonus. A lump-sum payment equal to the
product of: (A) the Participant’s target bonus for the year in which the
Change of Control occurs; and (B) the number of days from January 1 to the
date of the Change of Control divided by 365. Such payment shall be made
within 120 days of the date of the Involuntary Termination.

	 	(b)	 	No Participant shall be entitled to receive the benefits set forth in Section
3(a) and, if applicable, Sections 6 and 7, unless he executes and does not revoke a
Release (substantially in the form of Exhibit “A” hereto) in favour of the Corporation
and others set forth in Exhibit “A” relating to all claims or liabilities of any kind
relating to his employment with the Corporation and the termination of such employment.

	4.	 	Payments and Entitlements Upon a Termination without a Change of Control.

	 	(a)	 	Subject to Section 4(b), in the event that a Participant’s employment
terminates as a result of an Involuntary Termination at any time other than during the
Change of Control Window, the Participant shall be entitled to the following payments
and entitlements:

	 	(i)	 	Cash Severance Payment. The Participant shall
receive a cash payment in an amount (the “Severance Amount”) equal to the
product of: (a) the sum of the Participant’s Annual Base Salary, annual car
allowance and annual bonus at target for the year in which the Involuntary
Termination occurs, and (b) the Participant’s Severance Multiple. The
Severance Amount payable pursuant to this Section 4(a)(i) shall be paid in a
lump sum, less all applicable withholding taxes, within (i) 60 days of the
Involuntary

 

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	 	 	 	Termination in the case of a U.S. Participant whose Involuntary Termination
is a part of a group termination program, or (ii) 30 days of the Involuntary
Termination in any other case. The Severance Amount shall not be taken into
account for purposes of determining benefits under any other qualified or
non-qualified plans of the Corporation.

	 	(ii)	 	Continued Benefits. The Participant shall be
entitled, to the extent the Corporation may do so legally and in accordance
with the applicable benefit plans in effect from time to time, to continued
participation in the benefits plans for a period equal to the product of:
(a) one year and (b) the Participant’s Severance Multiple.
	 
	 	(iii)	 	Accrued Salary and Vacation. The Participant
shall be paid all salary and accrued vacation pay earned through the date of
such Participant’s date of termination, less all applicable withholding
taxes. Such payment shall be made as part of the Participant’s last regular
payroll payment.
	 
	 	(iv)	 	Pro-rata Bonus. A lump-sum payment equal to the
product of: (A) the Participant’s target bonus for the year in which the
Participant’s termination occurs; and (B) the number of days from January
1st to the date of the Participant’s termination divided by 365. Such
payment shall be made at the same time as the payment in Section 4(a)(i).

	 	(b)	 	No Participant shall be entitled to receive the benefits set forth in Section
4(a) and, if applicable, Sections 6 and 7, unless he executes and does not revoke a
Release (substantially in the form of Exhibit “A” hereto) in favour of the Corporation
and others set forth in Exhibit “A” relating to all claims or liabilities of any kind
relating to his employment with the Corporation and the Involuntary Termination of such
employment.

 

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	5.	 	Non-qualifying Termination. In the event a Participant’s employment is terminated by
reason of his voluntary resignation (and such resignation does not constitute an Involuntary
Termination), death or disability or by the Corporation for Cause, then such Participant shall
not be entitled to receive any severance or other payments, entitlements or benefits under the
Plan. For greater certainty, with respect to a termination by reason of death or by reason of
a disability, nothing in the Plan shall derogate from any rights and/or entitlements that the
Participant may be entitled to receive under any other bonus, equity compensation or benefit
plan of the Corporation in effect from time to time.

	6.	 	Acceleration of Vesting under Equity Plans. For greater certainty, the provisions of
this Plan are subject to the compliance with the Corporation’s equity plans in effect from
time to time. Except as otherwise provided in Section 3(a)(iii) hereof, but subject to the
Board or the Committee approving accelerations of vesting from time to time, each
Participant’s outstanding share units granted under the equity plans shall vest and, in the
case of stock options, become exercisable, as provided by and subject to the terms of the
equity plans.

7. Excise Tax Gross-Up: Limitation on Payments.

	 	(a)	 	Anything in this Plan to the contrary notwithstanding, in the event it shall be
determined that any payment to or for the benefit of a Participant by the Corporation,
whether pursuant to this Plan or otherwise (each, a “Payment” and collectively, the
“Payments”), would be subject to the Excise Tax, then:

	 	(i)	 	Level 1 Employee. With respect to a Participant
who is identified in his Award Letter as a Level 1 Employee, such
Participant shall be entitled to receive an additional payment (the
“Gross-Up Payment”) in an amount such that, after payment by such
Participant of all taxes (and any interest or penalties imposed with respect
to such taxes), including, without limitation, any income and employment
taxes (and any interest and penalties imposed with respect thereto) and
Excise Tax imposed upon the Gross-Up Payment, such Participant retains an
amount of the Gross-Up Payment equal to the Excise Tax imposed upon the
Payments.
	 
	 	(ii)	 	Level 2 or Level 3 Employee. With respect to a
Participant who is identified in his Award Letter as a Level 2 or Level 3
Employee, the amounts payable to such Participant shall be reduced (reducing
first the payment under Section 3(a)(i), second the payment under Section
3(a)(v), and third the payment under Section 3(a)(iii)) to the amount as
will result in no portion of the Payments (whether pursuant to this Plan or
otherwise) being subject to such Excise Tax (the “Safe Harbor Cap”), but
only if the net after-tax amount that would be received by such Participant,
taking into account all applicable federal, state and local income taxes and
the Excise Tax, is greater than the net after-tax amount that would be
received by such Participant if Payments are not reduced to the Safe Harbor
Cap. For purposes of reducing the Payments to the Safe Harbor Cap, only
amounts payable to such Participant under the Plan (and no other payments)
shall be reduced.

 

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	 	(b)	 	Subject to the provisions of Section 7(c), all determinations required to be
made under this Section 7, including whether and when a Gross-Up Payment or a reduction
to the Safe Harbor Cap is required, the amount of such Gross-Up Payment (or reduction)
and the assumptions to be utilized in arriving at such determination, shall be made by
the firm engaged as the Corporation’s accountants immediately prior to the Change of
Control (the “Accounting Firm”). The Accounting Firm shall provide detailed supporting
calculations both to the Corporation and such Participant within 15 business days of
the receipt of notice from such Participant that there has been a Payment or such
earlier time as is requested by the Corporation; provided that such notice or request
shall be made prior to the date of the payment of any Excise Tax. If the Accounting
Firm determines that no Excise Tax is payable by a Level 1 Employee, it shall deliver
to such Participant a written opinion to such effect and to the effect that failure to
report the Excise Tax on such Participant’s applicable federal income tax return will
not result in the imposition of a negligence or similar penalty. If the Accounting Firm
determines that a reduction to the Safe Harbor Cap is required in the case of a Level 2
Employee or a Level 3 Employee then, the Accounting Firm shall deliver to such
Participant a written opinion to that effect and to the effect that after such
reduction, failure to report the Excise Tax on such Participant’s applicable federal
income tax return will not result to the imposition of a negligence or similar penalty.
All fees and expenses of the Accounting Firm shall be borne solely by the Corporation.
Any Gross-Up Payment, as determined pursuant to this Section 7 by the Accounting Firm,
shall be paid by the Corporation to such Participant within five days of the receipt of
the Accounting Firm’s determination. Any determination by the Accounting Firm shall be
binding upon the Corporation and such Participant. As a result of the uncertainty in
the application of Section 4999 of the Code at the time of the initial determination by
the Accounting Firm hereunder, it is possible that Gross-Up Payments that will not have
been made by the Corporation should have been made (or that all or a portion of the
reductions pursuant to Section 7(a)(ii) should not have been made) (the “Underpayment”)
or that payments have been made to or for the benefit of a Participant in excess of the
limitations provided in Section 7(a)(ii) (an “Excess Payment”), consistent with the
calculations required to be made hereunder. In the event the Corporation exhausts its
remedies pursuant to Section 7(c) and a Level 1 Employee thereafter is required to make
a payment of any Excise Tax the Accounting Firm shall determine the amount of the
Underpayment in accordance with the provisions of this Section 7 and any such
Underpayment shall be paid by the Corporation to or for the benefit of such
Participant, within five days of the remittance of the Excise Tax to the Internal
Revenue Service. If it is established pursuant to a final determination of a court or
an Internal Revenue Service proceeding that has been finally and conclusively resolved,
that an Excess Payment has been made, such Excess Payment shall be deemed for all
purposes to be a loan to such Participant made on the date such Participant received
the Excess Payment and such Participant shall repay the Excess Payment to the
Corporation on demand, together with interest on the Excess Payment at the applicable
federal rate (as defined in Section 1274(d) of the Code) from the date of such
Participant’s receipt of such Excess Payment until

 

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	 	 	 	the date of such repayment; provided, however, that such repayment shall be required
only if such repayment eliminates the Excise Tax.

	 	(c)	 	A Participant shall notify the Corporation in writing of any claims by the
Internal Revenue Service that, if successful, would require the payment by the
Corporation of the Gross-Up Payment (including an Underpayment). Such notification
shall be given as soon as practicable but not later than 30 days after such Participant
actually receives notice in writing of such claim and shall apprise the Corporation of
the nature of such claim and the date on which such claim is requested to be paid;
provided, however, that the failure of such Participant to notify the Corporation of
such claim (or to provide any required information with respect thereto) shall not
affect any rights granted to such Participant under this Section 7 except to the extent
that the Corporation is materially prejudiced in the defense of such claim as a direct
result of such failure. The Participant shall not pay such claim prior to the
expiration of the 30-day period following the date on which such Participant gives such
notice to the Corporation (or such shorter period ending on the date that any payment
of taxes with respect to such claim is due). If the Corporation notifies such
Participant in writing prior to the expiration of such period that the Corporation
desires to contest such claim, such Participant shall:

	 	(i)	 	give the Corporation any information reasonably requested
by the Corporation relating to such claim;
	 
	 	(ii)	 	take such action in connection with contesting such claim
as the Corporation shall reasonably request in writing from time to time,
including, without limitation, accepting legal representation with respect
to such claim by an attorney selected by the Corporation and reasonably
acceptable to such Participant;
	 
	 	(iii)	 	cooperate with the Corporation in good faith in order to
effectively contest such claim; and
	 
	 	(iv)	 	permit the Corporation to participate in any proceedings
relating to such claim;

provided, however, that the Corporation shall bear and pay directly all costs and expenses
(including additional interest and penalties) incurred in connection with such contest, and
shall indemnify and hold such Participant harmless, on an after-tax basis, for any Excise
Tax or income or employment tax (including interest and penalties) imposed as a result of
such representation and payment of costs and expenses. All such costs and expenses incurred
due to a tax audit or litigation addressing the existence of or amount of a tax liability
under this Section 7 shall be paid by the Corporation within thirty days of the date payment
of such expenses are due, but in any event not later than (A) December 31 of the year
following the year in which the taxes are remitted to the taxing authority, or (B) where as
a result of such audit or litigation no taxes are remitted, December 31 of the year
following the year in which the audit is complete or there is a final and nonappealable
settlement or other resolution of litigation. Without limitation on the

 

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foregoing provisions of this Section 7, the Corporation shall control all proceedings taken
in connection with such contest, and, at its sole discretion, may pursue or forego any and
all administrative appeals, proceedings, hearings and conferences with the applicable taxing
authority in respect of such claim and may, at its sole discretion, either direct such
Participant to pay the tax claimed and sue for a refund or contest the claim in any
permissible manner, and such Participant agrees to prosecute such contest to a determination
before any administrative tribunal, in a court of initial jurisdiction and in one or more
appellate courts, as the Corporation shall determine; provided, however, that, if the
Corporation directs such Participant to pay such claim and sue for a refund, the Corporation
shall advance the amount of such payment to such Participant on an interest-free basis, and
shall indemnify and hold such Participant harmless, on an after-tax basis, from any Excise
Tax or income tax (including interest or penalties) imposed with respect to such advance or
with respect to any imputed income in connection with such advance; and provided, further,
that any extension of the statute of limitations relating to payment of taxes for the
taxable year of such Participant with respect to which such contested amount is claimed to
be due is limited solely to such contested amount. Furthermore, the Corporation’s control of
the contest shall be limited to issues with respect to which the Gross-Up Payment would be
payable hereunder, and such Participant shall be entitled to settle or contest, as the case
may be, any other issue raised by the Internal Revenue Service or any other taxing
authority.

	 	(d)	 	The Accounting Firm shall determine, in accordance with the provisions of this
Section 7, the amount of any Underpayment associated with an amount advanced by the
Corporation pursuant to Section 7(c), and any such Underpayment shall be paid by the
Corporation to the Participant on the earlier of (i) December 31 of the year following
the year in which the advance is paid to the Internal Revenue Service, or (ii) the date
the Corporation exhausts its remedies pursuant to Section 7(c). If, after the receipt
by such Participant of an amount advanced by the Corporation pursuant to Section 7(c),
such Participant becomes entitled to receive any refund with respect to such claim,
such Participant shall (subject to the Corporation’s complying with the requirements of
Section 7(c)) promptly pay to the Corporation the amount of such refund (together with
any Underpayment previously paid to such Participant under the first sentence of this
Section 7(d) and associated with the amount of the refunded advance). If, after the
receipt by such Participant of an amount advanced by the Corporation pursuant to
Section 7(c), a determination is made that such Participant shall not be entitled to
any refund with respect to such claim, and the Corporation does not notify such
Participant in writing of its intent to contest such denial of refund prior to the
expiration of 30 days after such determination, then such advance shall be forgiven and
shall not be required to be repaid and the amount of such advance (and any Underpayment
previously paid to such Participant under the first sentence of this Section 7(c) and
associated with the advance) shall offset, to the extent thereof, the amount of any
Underpayment to be paid.
	 
	 	(e)	 	Notwithstanding any other provision of this Section 7, the Corporation may, in
its sole discretion, withhold and pay over to the Internal Revenue Service or any other
applicable taxing authority, for the benefit of such Participant, all or any

 

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	 	 	 	portion of the Gross-Up Payment, and such Participant hereby consents to such
withholding.

	8.	 	Restrictive Covenants.

	 	8.1	 	Confidentiality.

	 	(a)	 	The Participant acknowledges that in the course of carrying
out, performing and fulfilling his obligations to the Corporation hereunder,
the Participant will have access to and will be entrusted with information that
would reasonably be considered confidential to the Corporation or its
Affiliates, the disclosure of which to competitors of the Corporation or its
Affiliates or to the general public, will be highly detrimental to the best
interests of the Corporation or its Affiliates. Such information includes,
without limitation, trade secrets, know-how, marketing plans and techniques,
cost figures, client lists, software, and information relating to employees,
suppliers, customers and persons in contractual relationship with the
Corporation. Except as may be required in the course of carrying out his duties
hereunder, the Participant covenants and agrees that he will not disclose, for
the duration of this Agreement or at any time thereafter, any such information
to any person, other than to the directors, officers, employees or agents of
the Corporation that have a need to know such information, nor shall the
Participant use or exploit, directly or indirectly, such information for any
purpose other than for the purposes of the Corporation, nor will he disclose
nor use for any purpose, other than for those of the Corporation or its
Affiliates, any other information which he may acquire during his employment
with respect to the business and affairs of the Corporation or its Affiliates.
Notwithstanding all of the foregoing, the Participant shall be entitled to
disclose such information if required pursuant to a subpoena or order issued by
a court, arbitrator or governmental body, agency or official, provided that the
Participant shall first have:

	 	(i)	 	notified the Corporation;
	 
	 	(ii)	 	consulted with the Corporation on whether there
is an obligation or defense to providing some or all of the requested
information;
	 
	 	(iii)	 	if the disclosure is required or deemed
advisable, cooperate with the Corporation in an attempt to obtain an
order or other assurance that such information will be accorded
confidential treatment.

In addition, Participant may disclose information relating to his own compensation
and benefits to his spouse, attorneys, financial advisors and taxing authorities.

	 	(b)	 	For the purposes of this Agreement, “Affiliate” shall mean,
with respect to any person or entity (herein the “first party”), any other
person or entity

 

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	 	 	 	that directs or indirectly controls, or is controlled by, or is under common
control with, such first party. The term “control” as used herein (including
the terms “controlled by” and “under common control with”) means the
possession, directly or indirectly, of the power to: (i) vote 50% or more of
the outstanding voting securities of such person or entity, or (ii)
otherwise direct or significantly influence the management or policies of
such person or entity by contract or otherwise.

	 	8.2	 	Inventions. The Participant acknowledges and agrees that all right,
title and interest in and to any information, trade secrets, advances, discoveries,
improvements, research materials and data bases made or conceived by the Participant
prior to or during his employment relating to the business or affairs of the
Corporation, shall belong to the Corporation. In connection with the foregoing, the
Participant agrees to execute any assignments and/or acknowledgements as may be
requested by the Board of Directors from time to time.
	 
	 	8.3	 	Corporate Opportunities. Any business opportunities related to the
business of the Corporation which become known to the Participant during his employment
hereunder must be fully disclosed and made available to the Corporation by the
Participant, and the Participant agrees not to take or attempt to take any action if
the result would be to divert from the Corporation any opportunity which is within the
scope of its business.
	 
	 	8.4	 	Non-Competition and Non-Solicitation.

	 	(a)	 	The Participant will not at any time, without the prior written
consent of the Corporation, during the Participant’s employment with the
Corporation or for a period that is equal to the product of one (1) year and
the Participant’s Severance Multiple after the termination of the Participant’s
employment (regardless of the reason for such termination), either individually
or in partnership, jointly or in conjunction with any person or persons, firm,
association, syndicate, Corporation or corporation, whether as agent,
shareholder, employee, consultant, or in any manner whatsoever, directly or
indirectly:

	 	(i)	 	anywhere in the Territory, engage in, carry on
or otherwise have any interest in, advise, lend money to, guarantee the
debts or obligations of, permit the Participant’s name to be used in
connection with any business which is competitive to the Business or
which provides the same or substantially similar services as the
Business;
	 
	 	(ii)	 	for the purpose, or with the effect, of
competing with any business of the Corporation, solicit, interfere
with, accept any business from or render any services to anyone who is
a client or a prospective client of the Corporation or any Affiliate at
the time the Participant

 

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	 	 	 	ceased to be employed by the Corporation or who was a client during
the 12 months immediately preceding such time;

	 	(iii)	 	solicit or offer employment to any person
employed or engaged by the Corporation or any Affiliate at the time the
Participant ceased to be employed by the Corporation or who was an
employee during the 12-month period immediately preceding such time.

	 	(b)	 	For the purposes of the Agreement:

	 	(i)	 	“Territory” shall mean the countries in which
the Corporation and its subsidiaries conduct the Business;
	 
	 	(ii)	 	“Business” shall mean the business of
manufacturing, selling or distributing carbonated soft drinks, juices,
water and other non-alcoholic beverages to the extent such other
non-alcoholic beverages contribute, or are contemplated or projected to
contribute, materially to the profits of the Corporation at the time of
the Participant’s termination of employment.

	 	(c)	 	Nothing in this Agreement shall prohibit or restrict the
Participant from holding or becoming beneficially interested in up to one (1%)
percent of any class of securities in any corporation provided that such class
of securities are listed on a recognized stock exchange in Canada or the United
States or on the NASDAQ.

	 	8.5	 	Insider Policies. The Participant will comply with all applicable
securities laws and the Corporation’s Insider Trading Policy and Insider Reporting
Procedures (copies of which have been provided to the Participant) in respect of any
stock options issued to the Participant and other shares of the Corporation acquired by
the Participant.
	 
	 	8.6	 	Non-disparagement. The Participant shall not disparage the Corporation
or any of its affiliates, directors, officers, employees or other representatives in
any manner and shall in all respects avoid any negative criticism of the Corporation.
	 
	 	8.7	 	Injunctive Relief. The Participant acknowledges and agrees that in the
event of a breach of the covenants, provisions and restrictions in this Article 8, the
Corporation’s remedy in the form of monetary damages will be inadequate and that the
Corporation shall be, and is hereby, authorized and entitled, in addition to all other
rights and remedies available to it, to apply for and obtain from a court of competent
jurisdiction interim and permanent injunctive relief and an accounting of all profits
and benefits arising out of such breach.
	 
	 	8.8	 	Survival of Restrictions. Each and every provision of this Article 8
shall survive the termination of this Agreement or the Participant’s employment
hereunder (regardless of the reason for such termination).

 

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	9.	 	Plan Administration.

	 	9.1	 	The Committee. The Plan shall be interpreted, administered and
operated by the Human Resources and Compensation Committee of the Board of Directors of
the Corporation (“Board”), or such other committee designated by the Board to interpret
administer and operate the Plan (the “Committee”). The Committee shall have complete
authority, in its sole discretion (subject to the express provisions of the Plan and
the obligation imposed hereby to act in good faith) to interpret the Plan and to make
any determinations necessary or advisable for the administration of the Plan.
	 
	 	9.2	 	Administration. The Committee may delegate any of its duties to such
person or persons as it may determine in its sole discretion from time to time to
assist the Committee in the administration of the Plan. Consistent with the
requirements of ERISA and the regulations thereunder of the Department of Labor, the
Committee shall provide adequate written notice to any Participant whose claim for
benefits has been denied, setting forth specific reasons for such denial, written in a
manner calculated to be understood by such Participant, and affording such Participant
a full and fair review of the decision denying the claim.
	 
	 	9.3	 	Participants. The Committee shall from time to time select the
employees (each a “Participant” and collectively, the “Participants”) who are to
participate in the Plan. The Corporation shall advise each Participant of his
participation in the Plan by a letter (the “Award Letter”) which shall include the
Participant’s level of participation (either Level 1, 2, or 3) and the Participant’s
corresponding Severance Multiple and such other terms and conditions not inconsistent
with the Plan. Each Participant shall sign the Award Letter and return it to the
Corporation with an acknowledgment that the Participant has read the Plan, understands
his rights and obligations under the Plan, and agrees to be bound by its terms and
conditions. Subject to Section 9.4, a Participant shall not be removed as a participant
in the Plan after being selected by the Committee without the prior written consent of
such Participant. Any such removal without the prior written consent of the
Participant shall, without limiting Section 10.3(e), be deemed to be a material breach
of this Agreement by the Corporation for purposes of Section 10.3(e).
	 
	 	9.4	 	Termination or Amendment of Plan. The Board shall have the right, in
its sole discretion, to approve the termination, amendment, or replacement of the Plan
without the consent of a Participant; provided, however, that such action will not have
an overall adverse affect on the rights or entitlements of, or value to, or potential
rights or entitlements of, or potential value to, a Participant when the rights,
entitlements or value, or potential rights, entitlements or value, are considered in
the aggregate. For greater certainty, nothing in this Plan, including this Section 9.4,
alters, restricts or limits the right, if any, of the Board of Directors, to amend or
terminate any other plan of the Corporation pursuant to and in accordance with the
terms of such plan.

 

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	10.	 	Definitions.

	 	10.1	 	“Annual Base Salary” shall mean the salary that the Participant is entitled to
receive pursuant to his employment agreement with the Corporation.
	 
	 	10.2	 	“Cause” shall mean:

	 	(i)	 	the wilful failure of the Participant to
properly carry out the Participant’s duties and responsibilities or to
adhere to the policies of the Corporation after written notice by the
Corporation of the failure to do so, and such failure remaining
uncorrected following an opportunity for the Participant to correct the
failure within ten (10) days of the receipt of such notice;
	 
	 	(ii)	 	theft, fraud, dishonesty or misappropriation by
the Participant, or the gross negligence or wilful misconduct by the
Participant, involving the property, business or affairs of the
Corporation, or in the carrying out of the Participant’s duties,
including, without limitation, any breach by the Participant of the
representations, warranties and covenants contained in the
Participant’s employment agreement or Article 8 of the Plan;
	 
	 	(iii)	 	the Participant’s conviction of or plea of
guilty to a criminal offence that involves fraud, dishonesty, theft or
violence;
	 
	 	(iv)	 	the Participant’s breach of a fiduciary duty
owed to the Corporation; or
	 
	 	(v)	 	the Participant’s refusal to follow the lawful
written reasonable and good faith direction of the Board of Directors
of Cott Corporation.

	 	10.3	 	“Good Reason” shall include any of the following:

	 	(a)	 	a material diminution in the Participant’s title or duties or
assignment to the Participant of materially inconsistent duties;
	 
	 	(b)	 	in the case of a Participant who is identified in his Award
Letter as a Level 1 Employee and who reports to the Chief Executive Officer of
the Corporation as of the date on which such Participant becomes a Participant
under this Plan, a change in the reporting structure of the Participant such
that such Participant no longer reports to the Chief Executive Officer (or
their equivalent) of the Corporation or any successor thereto following a
Change of Control, including a successor to all or substantially all of the
business, assets or undertakings of the Corporation;
	 
	 	(c)	 	a reduction in the Participant’s then current Annual Base
Salary or target bonus opportunity as a percentage of Annual Base Salary;

 

-13-

	 	(d)	 	relocation of the Participant’s principal place of employment
to a location that is more than 50 miles away from the Participant’s principal
place of employment on the date upon which the Participant became a
Participant, unless such relocation is effected at the request of the
Participant or with the Participant’s approval;
	 
	 	(e)	 	a material breach by the Corporation of any provisions of this
Agreement, or any employment agreement to which the Participant and the
Corporation are parties, after written notice by the Participant of the breach
and such failure remaining uncorrected following an opportunity for the
Corporation to correct such failure within ten (10) days of the receipt of such
notice; or
	 
	 	(f)	 	the failure of the Corporation to obtain the assumption in
writing of its obligation to perform this Agreement by any successor to all or
substantially all of the business or assets of the Corporation within fifteen
(15) days after a merger, consolidation, sale or similar transaction.

	 	10.4	 	“Change of Control” shall mean:

	 	(a)	 	a take-over bid (within the meaning of the Securities Act
(Ontario)), other than a take-over bid exempt from the requirements of Part XX
of such Act pursuant to sub-sections 93(1)(b) or (c) thereof, is completed in
respect of more than twenty percent (20%) of the Corporation’s common shares
and the majority of the members who were members of the Board of Directors of
the Corporation prior to completion of such take-over bid are replaced within
60 days following completion of such take-over bid, or
	 
	 	(b)	 	any of the following occur: (A) any consolidation, merger or
amalgamation of the Corporation with or into any other corporation whereby the
voting shareholders of the Corporation immediately prior to such event receive
less than 50% of the voting shares of the consolidated, merged or amalgamated
corporation; (B) a sale by the Corporation of all or substantially all of the
Corporation’s undertakings or assets; (C) a proposal by or with respect to the
Corporation being made in connection with a liquidation, dissolution or winding
up of the Corporation; (D) any reorganization, reverse stock split or
recapitalization of the Corporation that would result in a Change of Control as
otherwise defined herein; or (E) any transaction or series of related
transactions having, directly or indirectly, the same effect as any of the
foregoing.

	 	10.5	 	“Change of Control Window” shall mean the period that commences 90 days prior
to (a) the occurrence of a Change of Control or (b) any public announcement of the
intention to undertake a transaction that if consummated would result in a Change of
Control, and terminates upon the expiration of the period equal to the product of one
(1) year and the Participant’s Severance Multiple, following the date of such Change of
Control.

 

-14-

	 	10.6	 	“Code” shall mean the Internal Revenue Code of 1986, as amended.
	 
	 	10.7	 	“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as
amended.
	 
	 	10.8	 	“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.
	 
	 	10.9	 	“Excise Tax” shall mean the excise tax imposed by Section 4999 of the Code,
together with any interest or penalties imposed with respect to such excise tax.
	 
	 	10.10	 	“Involuntary Termination” shall mean: (a) any termination of the Participant’s
employment by the Corporation other than for Cause, or (b) the termination of the
Participant’s employment by the Participant for Good Reason. For purposes of this
definition, a Participant’s termination of his or her employment following the
occurrence of such event constituting “Good Reason” shall not be treated as an
Involuntary Termination unless the Participant notifies the Corporation of such event
within 90 days of the Participant’s knowledge of the occurrence of such event and the
Corporation is provided with an opportunity to cure such occurrence.
	 
	 	10.11	 	“Severance Multiple” shall mean:

	 	(a)	 	with respect to a Level 1 Employee, two (2);
	 
	 	(b)	 	with respect to a Level 2 Employee one and one half (1.5);
	 
	 	(c)	 	with respect to a Level 3 Employee, one (1).

	11.	 	Code Section 409A

	 	11.1	 	In General. This Section 11 shall apply to any Participant who is
subject to Section 409A of the Code, but only with respect to any payment due hereunder
that is subject to Section 409A of the Code.
	 
	 	11.2	 	Release. Any requirement that the Participant execute and not revoke a
release to receive a payment hereunder shall apply to a payment described in Section
11.1 only if the Corporation provides the release to the Participant on the date of the
Participant’s Involuntary Termination or, with respect to amounts payable under Section
3 as a result of an Involuntary Termination occurring prior to a Change of Control, the
date of the Change of Control.
	 
	 	11.3	 	Payment Following Involuntary Termination. Notwithstanding any other
provision of this Plan to the contrary, any payment described in Section 11.1 that is
due to be paid within a stated period following the Participant’s Involuntary
Termination shall be paid:

	 	(a)	 	If, at the time of the Participant’s Involuntary Termination,
the Participant is a “specified employee” as defined in Section 409A of the
Code, such payment shall be made as of the later of (i) the date payment is due

 

-15-

	 	 	 	hereunder, or (ii) the earlier of the date which is six months after the
Participant’s “separation from service” (as defined under Section 409A of
the Code), or the date of the Participant’s death; or

	 	(b)	 	In any other case, on the later of (i) last day of the stated
period, or if such stated period is not more than 90 days, at any time during
such stated period as determined by the Corporation without any input from the
Participant, or (ii) the date of the Participant’s “separation from service”
(as defined under Section 409A of the Code).

	 	11.4	 	Payment Following Change of Control. Notwithstanding any other
provision of this Plan to the contrary, any payment described in Section 11.1 that is
due to be paid within a stated period following a Change of Control shall be paid:

	 	(a)	 	On the last day of the stated period if the Change of Control
is also a “change in control event” under Section 409A of the Code; or
	 
	 	(b)	 	Four months after the date of the Participant’s “separation
from service” (as defined under Section 409A of the Code), subject to Section
11.3(a) (ii) (if applicable).

	 	11.5	 	Installment Payments. Any payment described in Section 11.1 (including
the provision of benefits) that is a series of instalment payments (and not a life
annuity) for purposes of Section 409A of the Code is to be treated as a right to a
series of separate payments.
	 
	 	11.6	 	Reimbursements Under Section 12.10. The following shall apply to any
reimbursement under Section 12.10 that is payment described in Section 11.1: (a)
reimbursement shall not be made unless the expense is incurred during the period
beginning on the date of the Participant’s Involuntary Termination and ending on the
sixth anniversary of the Participant’s death; (b) the amount of expenses eligible for
reimbursement during a Participant’s taxable year shall not affect the expenses
eligible for reimbursement in any other year; and (c) the timing of all such
reimbursements shall be as provided in Section 12.10, but not later than the last day
of the Participant’s taxable year following the taxable year in which the expense was
incurred.
	 
	 	11.7	 	Amendment and Interpretation. Notwithstanding any other provision of
this Plan to the contrary, the Board reserves the right to unilaterally amend the Plan
with respect to any payment described in Section 11.1 to the extent the Board (in its
sole discretion) determines is necessary or appropriate to avoid the additional tax
under Section 409A(a)(1)(B) of the Code and maintain, to the maximum extent
practicable, the original intent of the provision(s) being amended. With respect to
any payment described in Section 11.1, this Plan shall be interpreted and construed so
as to avoid the additional tax under Section 409A(a)(1)(B) of the Code.

 

-16-

	12.	 	General Provisions

	 	12.1	 	Assignment. Each Participant’s rights under the Plan shall be
non-transferable except by will or by the laws of descent and distribution and except
insofar as applicable law may otherwise require. Any purported assignment in violation
of the preceding sentence shall be void.
	 
	 	12.2	 	Governing Law. The Plan shall be governed by and construed in
accordance with the laws of the province of Ontario, without reference to principles of
conflict of laws.
	 
	 	12.3	 	Successors. The Plan shall be for the benefit of and binding upon the
Participants and their respective heirs, personal representatives, legal
representatives, successors and, where applicable, assigns, and upon the Corporation
and its successors (including, without limitation, any successor to the Corporation,
whether by merger, consolidation, sale of stock, sale of assets or otherwise). The
Corporation shall require any successor or assign (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of the
business and/or assets of the Corporation, expressly, absolutely, unconditionally to
assume and agree to perform under the Plan in the same manner and to the same extent
that the Corporation would be required to perform it if no such succession or
assignment had taken place.
	 
	 	12.4	 	Severability. The invalidity of any one or more of the words, phrases,
sentences, clauses or sections contained in the Plan shall not affect the
enforceability of the remaining portions of the Plan or any part thereof, all of which
are inserted conditionally on their being valid in law, and, in the event that any one
or more of the words, phrases, sentences, clauses or sections contained in the Plan
shall be declared invalid, the Plan shall be construed as if such invalid word or
words, phrase or phrases, sentence or sentences, clause or clauses, or section or
sections had not been inserted.
	 
	 	12.5	 	Section Headings and Gender. The section headings contained the Plan
are for reference purposes only and shall not affect in any way the meaning or
interpretation of the Plan. All pronouns and any variations thereof shall be deemed to
refer to the masculine, feminine or neuter, as the identity of the person or persons
may require.
	 
	 	12.6	 	No Duty to Mitigate. Except as otherwise specifically provided herein,
a Participant shall not be required to mitigate the amount of any payment contemplated
by the Plan, nor shall any such payment be reduced by any earnings that the Participant
may receive from any other source.
	 
	 	12.7	 	Non-cumulation of Payments and Entitlements. The payments and
entitlements provided under this Plan are inclusive of any termination and severance
payments and entitlements, social costs or the like (“Other Severance Entitlements”)
that such Participant may be entitled to by agreement with the Corporation (including,
without limitation, pursuant to an employment agreement) or under applicable

 

-17-

	 	 	 	law in connection with the termination of his employment, and a Participant may not
cumulate the payments and entitlements provided under the Plan with any Other
Severance Entitlements. For greater clarity, to the extent that a Participant
receives any Other Severance Entitlements, then the payments and benefits payable
hereunder to such participant shall be reduced by a like amount. To the extent the
Corporation is required to provide payments or benefits to any Participant under the
Ontario Employment Standards Act, 2000 (or any federal, provincial, or local or
foreign law relating to severance or dismissal benefits), the benefits payable
hereunder shall be first applied to satisfy such obligation.

	 	12.8	 	No Employment Agreement. The Plan does not obligate the Corporation to
continue to employ a Participant. The Participant’s employment is and shall, subject to
the terms of any applicable written employment agreement between the Corporation and
Participant, continue to be at-will, as defined under applicable law.
	 
	 	12.9	 	No Funding of Plan. The Plan shall not be funded. No Participant shall
have any right to, or interest in, any assets of the Corporation as a result of his
participation in the Plan.
	 
	 	12.10	 	Indemnification. If a Participant seeks, in any action, suit or
arbitration, to enforce or to recover damages for breach of his rights under the Plan,
the Participant shall be entitled to recover from the Corporation promptly as incurred,
and shall be indemnified by the Corporation against, any and all expenses and
disbursements, including attorneys’ fees, actually and reasonably incurred by the
Participant in such action, suit or arbitration, provided that a Participant shall not
be entitled to indemnification if it is finally determined that the action was brought
by the Participant frivolously or in bad faith.
	 
	 	12.11	 	Supersedes Previous Termination and Severance Terms. With the
exception of any payments and entitlements under any other plan that may arise upon a
Participant’s termination due to death or disability as provided in section 5 herein,
the terms of the Plan supersedes and replaces any and all previous termination and
severance entitlements that arise with or without a change of control, that are
contained in any Participant’s employment agreement or otherwise. The Participant
forfeits and waives any and all rights to any entitlements under such employment
agreements or otherwise, in respect of any payments and other entitlements that may
arise upon a termination of employment, including pay in lieu of reasonable notice,
termination and severance pay pursuant to any contract, statute, or law.

This Amended and Restated Retention, Severance and Non-Competition Plan is hereby adopted as of
June 25, 2007.

 

-18-

	 	 	 	 	 
	 	COTT CORPORATION

 	 
	 	Per:  	/s/ Brent D. Willis
 	 
	 	 	Name:  	Brent D. Willis 	 
	 	 	Title:  	Chief Executive Officer 	 
	 
	 	 	 
	 	Per:  	    /s/ Betty Jane Hess
 	 
	 	 	Name:  	Betty Jane Hess 	 
	 	 	Title:  	Chair, Human Resources and Compensation Committee 	 

 

A-1

	 	 	 	 	 

EXHIBIT “A”

RELEASE AGREEMENT

In consideration of the mutual promises, payments and benefits provided for in the annexed Cott
Corporation Retention, Severance and Non-Competition Plan (the “Plan”), and the release from
___________ (the “Employee”) set forth herein, Cott Corporation (the “Corporation”) and the
Employee agree to the terms of this Release Agreement. Capitalized terms used and not defined in
this Release Agreement shall have the meanings assigned thereto in the Plan.

	1.	 	The Employee acknowledges and agrees that the Corporation is under no obligation to offer the
Employee the payments and benefits set forth in the annexed Plan, unless the Employee consents
to the terms of this Release Agreement. The Employee further acknowledges that he/she is under
no obligation to consent to the terms of this Release Agreement and that the Employee has
entered into this agreement freely and voluntarily.

	2.	 	In consideration of the payment and benefits set forth in the annexed Plan and the
Corporation’s release set forth in paragraph 5, the Employee voluntarily, knowingly and
willingly releases and forever discharges the Corporation and its Affiliates, together with
its and their respective officers, directors, partners, shareholders, employees and agents,
and each of its and their predecessors, successors and assigns (collectively, “Releasees”),
from any and all charges, complaints, claims, promises, agreements, controversies, causes of
action and demands of any nature whatsoever that the Employee or his/her executors,
administrators, successors or assigns ever had, now have or hereafter can, shall or may have
against the Releasees by reason of any matter, cause or thing whatsoever arising prior to the
time of signing of this Release Agreement by the Employee. The release being provided by the
Employee in this Release Agreement includes, but is not limited to, any rights or claims
relating in any way to the Employee’s employment relationship with the Corporation or any its
Affiliates, or the termination thereof, or under any statute, including, but not limited to
the Employment Standards Act, 2000, the Human Rights Code, the Workplace Safety and Insurance
Act re-employment provisions, the Occupational Health & Safety Act, the Pay Equity Act, the
Labour Relations Act, Title VII of the Civil Rights Act of 1964, the Age Discrimination in
Employment Act, as amended by the Older Workers’ Benefit Protection Act, the Family and
Medical Leave Act, and the Americans With Disabilities Act, or pursuant to any other
applicable law or legislation governing or related to his/her employment or other engagement
with the Corporation. In no event shall this Release apply to the Participant’s right, if
any, to indemnification, under the Participant’s employment agreement or otherwise, that is in
effect on the date of this Release and, if applicable, to the Corporation’s obligation to
maintain in force reasonable director and officer insurance in respect of such indemnification
obligations.

	3.	 	The Employee acknowledges and agrees that he/she shall not, directly or indirectly, seek or
further be entitled to any personal recovery in any lawsuit or other claim against the
Corporation or any other Releasee based on any event arising out of the matters released in
paragraph 2.

 

A-2

	4.	 	Nothing herein shall be deemed to release: (i) any of the Employee’s rights under the Plan;
or (ii) any of the vested benefits that the Employee has accrued prior to the date this
Release Agreement is executed by the Employee under the employee benefit plans and
arrangements of the Corporation or any of its Affiliates; or (iii) any claims that may arise
after the date this Release Agreement is executed.

	5.	 	In consideration of the Employee’s release set forth in paragraph 2, the Corporation
knowingly and willingly releases and forever discharges the Employee from any and all charges,
complaints, claims, promises, agreements, controversies, causes of action and demands of any
nature whatsoever that the Corporation now has or hereafter can, shall or may have against
him/her by reason of any matter, cause or thing whatsoever arising prior to the time of
signing of this Release Agreement by the Corporation, provided, however, that nothing herein
is intended to release any claim the Corporation may have against the Employee for any illegal
conduct or arising out of any illegal conduct.

	6.	 	The Employee acknowledges that the he has carefully read and fully understands all of the
provisions and effects of the Plan and this Release Agreement. The Employee also acknowledges
that the Corporation, by this paragraph and elsewhere, has advised him/her to consult with an
attorney of his/her choice prior to signing this Release Agreement. The Employee represents
that, to the extent he/she desires, he/she has had the opportunity to review this Release
Agreement with an attorney of his/her choice.

	7.	 	In the event that the Employee is governed by the law in the United States, the Employee
acknowledges that he/she has been offered the opportunity to consider the terms of this
Release Agreement for a period of at least forty-five (45) days, although he/she may sign it
sooner should he/she desire. The Employee further shall have seven (7) additional days from
the date of signing this Release Agreement to revoke his/her consent hereto by notifying, in
writing, the General Counsel of the Corporation. This Release Agreement will not become
effective until seven days after the date on which the Employee has signed it without
revocation.

	8.	 	In the event that the Employee is governed by the law in the United States, the Employee
acknowledges that, by the attached Exhibit 1, which is incorporated herein by reference, the
Corporation has informed him/her in writing of the time limits and eligibility requirements
applicable to the separation program stemming from the occurrence of a Change in Control; the
category of employees eligible for the program; and the job title and age of each employee
selected or not selected for termination as a result of the separation program.

Dated:

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	Employee 	 
	 	 	 

 

A-3

	 	 	 	 	 

	 	 	 	 	 
	 	COTT CORPORATION

 	 
	 	Per:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	Per:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

EXHIBIT 1

The Corporation is undergoing a group termination program as a result of a Change in Control, as
defined in the Plan. The Release Agreement, which provides for additional severance benefits, will
be offered to executive-level employees of the Corporation whose employment is terminated as a
result of the Change in Control. All persons who are being offered consideration under the Plan and
accompanying Release Agreement must sign the Release Agreement and return it to the General Counsel
of the Corporation within forty-five (45) days after receiving the Release Agreement. Once the
Release Agreement is signed, the Employee has seven (7) days to revoke the Agreement.

The following is a list of the job titles and ages of all employees to whom the Corporation is
offering the Severance Program:

	 	 	 	 	 	 	 
	Job Title

	 	 
	 	Age	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 

The following is a listing of the ages and job titles of employees in the same job classification
who were not selected for layoff and offered this Severance Package:

	 	 	 	 	 	 	 
	Job Title

	 	 
	 	Age	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 

GOODMANS\\5437782.13Cott Corporation

 

Exhibit 10.7

COTT CORPORATION

AMENDED AND RESTATED PERFORMANCE SHARE UNIT PLAN

ARTICLE I

PURPOSE AND ESTABLISHMENT OF PLAN

1.1 Purpose.

     The Company hereby establishes a Plan for the purposes of fostering and promoting the
long-term financial success of the Company and its Subsidiaries and materially increasing the value
of the Company and/or its Subsidiaries by (i) encouraging the long-term commitment of key
Employees, (ii) motivating performance of key Employees by means of long-term performance related
incentives, (iii) attracting and retaining outstanding key Employees by providing incentive
compensation opportunities, and (iv) enabling participation by key Employees in the long-term
growth and financial success of the Company.

1.2 Effective Date.

     The Plan shall become effective on June 25, 2007, and upon taking effect, shall amend and
restate in its entirety the Plan approved by the Board and a majority of the Company’s shareholders
at the Company’s annual meeting held on April 20, 2006, in accordance with Section 8.8.

ARTICLE II

DEFINITIONS

     In this Plan, the following terms shall have the following meanings:

	 	(a)	 	“Award” means any award of the right to earn Performance Share Units granted
pursuant to the Plan;
	 
	 	(b)	 	“Award Agreement” means a written agreement between a Participant and the
Company which sets forth the terms of the grant of an Award;
	 
	 	(c)	 	“Award Amount” means the value (stated in terms of Canadian dollars) of the
Award granted under the Plan to a Participant in respect of a Performance Cycle,
assuming the target Performance Goals are attained for such Performance Cycle;
	 
	 	(d)	 	“Board” means the Board of Directors of the Company;
	 
	 	(e)	 	“Cause” means any action by the Participant or inaction by the Participant that
constitutes: (i) a breach of a written employment agreement by that Participant; or
(ii) misconduct, dishonesty, disloyalty, disobedience or action that might

 

 

	 	 	 	reasonably injure the Company or any of its Subsidiaries or their respective
business interests or reputation;

	 	(f)	 	“Change of Control” means: (i) a consolidation, merger or amalgamation of the
Company with or into any other corporation whereby the voting shareholders of the
Company immediately prior to such event receive less than 50% of the voting shares of
the consolidated, merged or amalgamated corporation; (ii) a sale by the Company of all
or substantially all of the Company’s undertakings and assets; or (iii) a proposal by
or with respect to the Company being made in connection with a liquidation, dissolution
or winding-up of the Company;
	 
	 	(g)	 	“Committee” means the Human Resources and Compensation Committee of the Board;
	 
	 	(h)	 	“Common Shares” means the common shares in the capital of the Company;
	 
	 	(i)	 	“Company” means Cott Corporation, a corporation amalgamated under the laws of
Canada;
	 
	 	(j)	 	“Employee” means a full-time, part-time or contract employee of an Employer;
	 
	 	(k)	 	“Employer” means, in respect of a Participant, the Company or the Subsidiary of
the Company employing such Participant;
	 
	 	(l)	 	“Fair Market Value” means, with respect to a Common Share on any determination
date, the closing price of the Common Shares on the Toronto Stock Exchange on the last
trading day on which Common Shares traded prior to such date; provided that if no
Common Shares traded in the five trading days prior to the determination date, the
Committee shall determine Fair Market Value on a reasonable basis using a method that
complies with section 409A of the United States Internal Revenue Code of 1986, as
amended, and guidance issued thereunder;
	 
	 	(m)	 	“Fiscal Year” means the 12-month period beginning the first Sunday following
the immediately preceding Saturday closest to December 31st and ending on
the Fiscal Year End;
	 
	 	(n)	 	“Fiscal Year End” means, with respect to each Fiscal Year, the Saturday closest
to December 31st of such Fiscal Year;
	 
	 	(o)	 	“Normal Retirement” means retirement from office or employment with an Employer
(at the election of the Employee and as agreed to by the Employer);
	 
	 	(p)	 	“Participant” means any Employee(s) approved by the Committee to participate in
the Plan;
	 
	 	(q)	 	“Performance Cycle” means a period of time determined at the date of grant by
the Committee, in its discretion, (not to be longer than three Fiscal Years, the first

-2-

 

	 	 	 	year of which shall be the Fiscal Year in which the award is granted and the last
day of which shall be the last day of a Fiscal Year) over which performance is
measured for the purpose of determining a Participant’s eligibility to earn, and the
payment value of, any Performance Share Units;

	 	(r)	 	“Performance Goals” shall mean the criteria and objectives determined by the
Committee in its discretion pursuant to the Plan, which shall be satisfied or met
during the applicable Performance Cycle as a condition precedent to a Participant
earning Performance Share Units under an Award. Such criteria and objectives may
include earnings before interest, taxes, depreciation and amortization; operating
income; net operating income after tax; pre-tax or after-tax income; cash flow; net
earnings; earnings per share; share price performance; return on assets; return on
equity; return on invested capital; tangible net asset growth; any combination of the
foregoing; or any other financial criteria and objectives determined by the Committee
in its discretion;
	 
	 	(s)	 	“Performance Share Unit” means a notional unit representing a contingent right
to receive Common Shares following the Vesting Date based upon the achievement of
certain Performance Goals during a specified Performance Cycle;
	 
	 	(t)	 	“Permanent Disability” means the complete and permanent incapacity of a
Participant, as determined by a licensed medical practitioner approved by the
Committee, due to a medically determinable physical or mental impairment which prevents
such Participant from performing substantially all of the essential duties of his or
her office or employment;
	 
	 	(u)	 	“Plan” means the Cott Corporation Performance Share Unit Plan, as amended from
time to time;
	 
	 	(v)	 	“PSU Fund” means the trust fund or funds established under the PSU Trust
Agreement, which for purposes of the Plan constitutes an “employee benefit plan” for
purposes of the Tax Act;
	 
	 	(w)	 	“PSU Trust Agreement” means the agreement or agreements by and among the
Company, the Trustee, and the Agent (as defined therein) to carry out the purposes of
the Plan in respect of Common Shares purchased on account of vested Performance Share
Units and any income attributable thereto in accordance with the terms of the Plan;
	 
	 	(x)	 	“Subsidiary” has the meaning assigned thereto in the Securities Act (Ontario)
and “Subsidiaries” shall have a corresponding meaning;
	 
	 	(y)	 	“Superior Goals” has the meaning attributed to it in Section 4.2;
	 
	 	(z)	 	“Target Goals” has the meaning attributed to it in Section 4.2;
	 
	 	(aa)	 	“Target PSU Number” has the meaning attributed to it in Section 4.3(b);

-3-

 

	 	(bb)	 	“Tax Act” means the Income Tax Act (Canada) and all regulations thereunder, as
amended or restated from time to time. Any reference in the Agreement to a provision of
the Tax Act includes any successor provision thereto;
	 
	 	(cc)	 	“Terminated Participant” means a Participant who has incurred a Termination
Date and shall include, where context requires, the personal representative(s) of a
Participant;
	 
	 	(dd)	 	“Termination Date” means the Participant’s last day of active service with his
or her Employer (determined without regard to any notice of termination owing pursuant
to statute, regulation, agreement or common law);
	 
	 	(ee)	 	“Threshold Goals” has the meaning attributed to it in Section 4.2;
	 
	 	(ff)	 	“Trustee” means MRS Trust or its successor trustee under the PSU Trust
Agreement;
	 
	 	(gg)	 	“UK Tax Liability” has the meaning attributed to it in Section 8.7(b); and
	 
	 	(hh)	 	“Vesting Date” means, with respect to any Performance Share Units earned in a
Performance Cycle, the last day of the Performance Cycle, except as otherwise provided
in Section 5.3.

ARTICLE III

ADMINISTRATION OF THE PLAN

3.1 Administration of the Plan.

     The Plan shall be administered by the Committee. The Committee shall have the power and
authority to:

	 	(a)	 	adopt rules and regulations for implementing the Plan;
	 
	 	(b)	 	other than with respect to the Chief Executive Officer of the Company,
determine the eligibility of persons to participate in the Plan, when Awards shall be
granted to eligible persons and the amounts, terms and conditions of such Awards,
including the Award Amount (subject to the maximum Award Amount set forth in Section
4.1(b));
	 
	 	(c)	 	interpret and construe the provisions of the Plan, and any such interpretation
and construction of the Plan by the Committee shall be final in all respects and, in
particular, shall not be subject to any appeals whatsoever;
	 
	 	(d)	 	subject to statutory and regulatory requirements, make exceptions to the Plan
in circumstances which it determines to be exceptional;
	 
	 	(e)	 	delegate such administrative duties and powers as it may see fit with respect
to this Plan (excluding, for greater certainty, the power to grant Awards) to any

-4-

 

	 	 	 	officers of an Employer (and any such duties performed or powers exercised by any
such officers shall be deemed to have been performed or exercised, as the case may
be, by the Committee), such delegation to be evidenced by a written resolution
adopted by the Committee; and

	 	(f)	 	take such other steps as it determines to be necessary or desirable to give
effect to the Plan.

Any decision, approval or determination made by a person or group of persons delegated the ability
to make such decision, approval or determination pursuant to Section 3.1(e) above shall be deemed
to be a decision, approval or determination, as the case may be, of the Committee; provided, that
two officers of the Company, one of whom must be the Chief Executive Officer, the Chief Financial
Officer, the Senior Vice President, Corporate Resources, or the Secretary, are hereby authorized to
sign and execute all instruments and documents and do all things necessary or desirable for
carrying out the provisions of the Plan.

ARTICLE IV

OPERATION OF PLAN

4.1 Eligibility and Participation.

	 	(a)	 	All Employees are eligible for consideration to participate in the Plan.
Participants in the Plan shall be selected from time to time by the Committee, in its
discretion, from among those Employees who, in the opinion of the Committee, are key
Employees in a position to contribute materially to the continued growth, development
and long-term financial success of the Company and/or its Subsidiaries. Except with
respect to Awards granted to the Chief Executive Officer of the Company, the Committee,
in its discretion, shall determine the amounts, terms and conditions of each Award
granted hereunder, including the Award Amount (subject to the maximum Award Amount set
forth in Section 4.1(b) below). Any grant of an Award to the Chief Executive Officer of
the Company and the amounts, terms and conditions of such Award, including the Award
Amount (subject to the maximum Award Amount set forth below), shall require the prior
approval of the independent (as understood within the rules of the New York Stock
Exchange and applicable Canadian securities laws) members of the Board, upon the
recommendation of the Committee.
	 
	 	(b)	 	The maximum Award Amount that may be granted to an individual Participant in a
Fiscal Year shall not exceed 50% of the aggregate Award Amounts granted to all
Participants under this Plan in such Fiscal Year.
	 
	 	(c)	 	Subject to the foregoing, Awards may be granted by the Committee at any time
and from time to time to new Participants, or to already-participating Participants, or
to a greater or lesser number of Participants, and may include or exclude previous
Participants, as the Committee shall determine in its discretion. The grant of an Award
shall be evidenced by an Award Agreement setting forth such terms, provisions,
limitations and performance criteria (including Performance

-5-

 

	 	 	 	Goals for the applicable Performance Cycle) as are approved by the Committee, but
not inconsistent with the Plan. The Award Agreement shall also include the number of
Performance Share Units eligible to be earned by a Participant if the Threshold
Goals, Target Goals or Superior Goals are attained, as determined pursuant to
Section 4.3(b).

	 	(d)	 	Except as required by this Plan, Awards and the Award Agreements evidencing the
same need not contain similar provisions. The Committee’s determinations under the Plan
(including determinations of which Employees are to receive Awards, the form, amount
and timing of such Awards, the terms and provisions of such Awards and the Award
Agreements evidencing same) need not be uniform and may be made by the Committee
selectively among Participants who receive, or are eligible to receive, Awards under
the Plan.

4.2 Performance Goals.

     At the beginning of each Performance Cycle (and not later than (a) in the case of a
Performance Cycle of 12 months or more, the 89th day after the beginning of the Performance Cycle,
and (b) in the case of a Performance Cycle of less than 12 months, the date by which 25% of the
Performance Cycle has elapsed), the Committee shall, in its discretion, (i) establish for each
Performance Cycle the specific Performance Goals as the Committee believes are relevant to the
Company’s overall business objectives; (ii) determine the threshold Performance Goals (the
“Threshold Goals”), target Performance Goals (the “Target Goals”) and superior Performance Goals
(the “Superior Goals”) to be attained in order to earn Performance Share Units for such Performance
Cycle; and (iii) instruct senior Human Resources management to notify each Participant in writing
of the established Threshold Goals, Target Goals and Superior Goals for such Performance Cycle.

4.3 Attainment of Performance Goals.

	 	(a)	 	Upon completion of the Performance Cycle, the Committee shall certify the level
of the Performance Goals attained and the number of Performance Share Units earned by
Participants as a result thereof. The basis for earning Performance Share Units for a
given Performance Cycle shall be as set forth in Section 4.3(b). Each Participant’s
Performance Share Units will be subject to vesting as described in Section 5.1.
	 
	 	(b)	 	Attainment of the Target Goals for a Performance Cycle shall result in a
Participant earning a number of Performance Share Units equal to the number obtained by
dividing such Participant’s Award Amount in respect of such Performance Cycle by the
Fair Market Value on the date of grant of such Participant’s Award (such number, the
“Target PSU Number”). Failure to attain the Threshold Goals for a Performance Cycle
shall result in the failure to earn any of the Performance Share Units eligible to be
earned under the Award granted for such Performance Cycle, and such Award shall
terminate in full and all contingent rights thereunder shall cease. Attainment between
the Threshold Goals and Target Goals for a Performance Cycle shall result in the
earning by the

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	 	 	 	Participant of a portion of such Participant’s Target PSU Number of Performance
Share Units, determined by application of a pre-determined mathematical formula
which shall be determined by the Committee in its discretion and set out in the
Award Agreement governing such Award.

	 	(c)	 	In addition to the above targets, if performance in a Performance Cycle exceeds
the Target Goals, a Participant will earn additional Performance Share Units over and
above such Participant’s Target PSU Number of Performance Share Units for such
Performance Cycle, as determined by application of a pre-determined mathematical
formula which shall be determined by the Committee in its discretion and set out in the
Award Agreement governing such Award.

ARTICLE V

VESTING

5.1 Vesting Generally.

     If a Participant earns Performance Share Units for a Performance Cycle, such Performance Share
Units shall vest in full on the applicable Vesting Date; provided, that except as provided in
Section 5.2, no Performance Share Units shall vest unless the Participant is an Employee as of the
applicable Vesting Date and has been continuously employed by an Employer since the date of grant
of the Award. Any Performance Share Units that do not vest in accordance with the provisions of
this Plan shall be forfeited, and all contingent rights of a Participant thereunder shall cease.

5.2 Termination of Employment.

	 	(a)	 	In the event a Participant’s employment with an Employer is terminated for
Cause (as determined by the Committee in its discretion) or by the Participant
voluntarily (other than upon Normal Retirement), all of the Participant’s unvested
Performance Share Units will be forfeited immediately.
	 
	 	(b)	 	Except as provided in Section 5.3, in the event a Participant’s employment is
terminated without Cause, all of the Participant’s unvested Performance Share Units
shall be forfeited immediately, unless the Committee in its discretion waives the
employment requirement under Section 5.1, in which case the Committee shall determine,
in its discretion, the number of Performance Share Units to be deemed earned by such
Participant on each subsequent applicable Vesting Date, such number not to exceed the
pro rata number of Performance Share Units that he or she would have earned on that
Vesting Date had he or she been continuously employed through such date, as calculated
by reference to the portion of the applicable Performance Cycle during which the
Participant was actually employed.
	 
	 	(c)	 	In the event of a Participant’s death while in the employ of an Employer, or if
a Participant’s employment with an Employer is terminated due to Permanent Disability
or Normal Retirement, the employment requirements of Section 5.1

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	 	 	 	shall not apply, in which case the number of Performance Share Units to be deemed
earned by such Participant on each subsequent applicable Vesting Date shall equal
the pro rata number of Performance Share Units that he or she would have earned on
that Vesting Date had he or she been continuously employed through such date, as
calculated by reference to the portion of the applicable Performance Cycle during
which the Participant was actually employed.

5.3 Accelerated Vesting.

     In the event of a Change of Control, the Committee may, in its discretion, recommend to the
Board whether to accelerate the vesting (without regard to attainment of any Performance Goals) of
all or a portion of the unvested Performance Share Units of all of or any of the Participants. The
Board may elect, in its sole and absolute discretion, to accelerate the vesting of none, some or
all of a Participants’ unvested Performance Share Units, and any such election shall be final in
all respects and, in particular, shall not be subject to any appeals whatsoever. The Vesting Date
with respect to any such unvested Performance Share Units shall be the date of occurrence of such
Change of Control.

ARTICLE VI

PAYMENT OF PERFORMANCE SHARE UNITS

6.1 Payment in Respect of Performance Share Units.

	 	(a)	 	All Performance Share Units earned by a Participant that vest in accordance
with the terms of the Plan shall entitle such Participant to receive an equivalent
number of Common Shares.
	 
	 	(b)	 	With respect to each Participant, as soon as practicable following (i) the date
of grant of the Award, or (ii) the determination of the number of Performance Share
Units earned by and vested in a Participant, but in no event later than 50 days
following the Vesting Date, the Company shall cause such Participant’s Employer to
contribute to the Trustee an amount sufficient to permit the Trustee to purchase that
number of Common Shares equal to the Target PSU Number or the number of vested
Performance Share Units, as applicable. As soon as practicable following the receipt
of funds from the applicable Employer under this Section 6.1(b) and prior to the time
specified in Section 6.1(c) below, the Trustee shall use such funds to purchase Common
Shares on the New York Stock Exchange at the prevailing market price for Common Shares
as of the time and date of such purchases.
	 
	 	(c)	 	Within 60 days of the Vesting Date, but in no event later than March 15 of the
calendar year following the calendar year in which the Vesting Date occurs, the Common
Shares purchased by the Trustee hereunder shall be registered in the name of the
Trustee for the benefit of the respective Participant as beneficial owner, or, in the
event of death, a designated beneficiary, and transferred to the Participant’s account
under the PSU Fund, net of all applicable statutory withholdings.

-8-

 

	 	(d)	 	The Trustee, in its capacity as trustee of the PSU Fund, shall make provision
for the reporting and withholding of any Canadian, U.S., UK or Mexican federal or
national, provincial, state or local taxes that may be required to be withheld prior to
such transfer and shall complete applicable tax withholding and reporting and remit the
amounts withheld to the relevant Employer to pay to the appropriate taxing authorities.
Until distributed to the Participant, the Trustee, in its capacity as trustee of the
PSU Fund, shall hold all such Common Shares in accordance with the terms of the PSU
Trust Agreement.

6.2 Withdrawal of Vested Interest.

     A Participant may request, at any time and from time to time, by a written notice to the
Company in the form approved by the Committee, and subject to Section 6.4, the delivery to him or
her of the share certificates representing all or a portion of the Common Shares held in the
Participant’s account under the PSU Fund, net of any applicable statutory withholdings. The Common
Shares constituting such payment shall be delivered by the Trustee within 30 days following the
delivery of the written notice.

6.3 Payout of Vested Interest at Termination.

     A Terminated Participant must deliver written direction, in the manner prescribed by the
Committee, to the Committee within ninety (90) days following his or her Termination Date to
request delivery to him or her of share certificates evidencing all Common Shares to which he or
she is entitled hereunder. If a Terminated Participant fails to deliver such written direction to
the Committee within said ninety (90)-day period, the Committee, subject to Section 6.4, shall
instruct the Trustee to deliver to the Terminated Participant the share certificates evidencing all
of the Common Shares credited to the Terminated Participant’s account as of the Termination Date.

6.4 Restrictions on Vested Shares.

     Except as set forth in the Company’s policies respecting the trading of the Common Shares by
Employees or as restricted by applicable law, Common Shares that have been distributed to a
Participant hereunder are not subject to any restrictions concerning their sale or use.

6.5 No Partial Shares.

     Only certificates representing whole Common Shares shall be transferred to a Participant’s
account under Section 6.1(c) or delivered under Sections 6.2 and 6.3. If a Participant is entitled
to a fraction of a Common Share under Section 6.1, such entitlement shall be satisfied by payment
within the time specified in Section 6.1(c) of the cash equivalent of such fraction, determined by
reference to the Fair Market Value of such Common Share on the Vesting Date.

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ARTICLE VII

DIVIDENDS AND OTHER RIGHTS

7.1 Cash Earnings.

     Cash dividends or earnings, if any, received by the Trustee in respect of Common Shares held
in the PSU Fund shall be held by the Trustee for the benefit of the Participant for whom such
Common Shares are beneficially held. Until distributed to the Participant, the Trustee shall hold
such cash amounts in accordance with the terms of the PSU Trust Agreement.

7.2 Stock Dividends.

     Stock dividends, if any, received by the Trustee in respect of Common Shares held in the PSU
Fund shall be held by the Trustee for the benefit of the Participant for whom such Common Shares
are beneficially held. Until distributed to the Participant, the Trustee shall hold such stock
dividends in accordance with the terms of the PSU Trust Agreement.

7.3 Voting Rights.

     Each Participant shall be entitled to receive notice of and attend all meetings of the holders
of Common Shares and the Trustee shall vote the rights associated with any Common Shares as
directed by the Participant for whom such Common Shares are held in his or her account under the
PSU Fund.

7.4 Notification of Rights.

     The Trustee shall promptly transmit to each Participant all notices of conversion, redemption,
tender, exchange, subscription or other rights or powers that the Trustee receives from the Company
relating to the Common Shares held in the Participant’s account under the PSU Fund. The
Participants shall have no ability to exercise any rights associated with unvested Performance
Share Units.

ARTICLE VIII

GENERAL

8.1 Adjustments.

	 	(a)	 	The aggregate number of Performance Share Units earned under this Plan shall be
proportionally adjusted for an increase or decrease in the number of Common Shares due
to a stock split or share consolidation.
	 
	 	(b)	 	The Committee shall have the discretion to make appropriate adjustments to
exclude the effect of extraordinary corporate transactions, such as acquisitions,
divestitures, recapitalizations and reorganizations, and shall have the discretion to
not take into account extraordinary or non-recurring accounting charges and items,
insofar as they may otherwise affect the results under the applicable Performance
Goals.

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8.2 Non-transferability.

     Performance Share Units may not be sold, transferred, pledged, assigned, or otherwise
alienated or hypothecated, other than by a Participant’s last will and testament or by the laws of
descent and distribution. All rights with respect to Performance Share Units earned by a
Participant under the Plan shall be exercisable during his lifetime only by such Participant. Upon
any attempt to transfer, assign, pledge, hypothecate or otherwise dispose of any Performance Share
Units contrary to the provisions of this Plan, or upon the levy of any attachment or similar
process upon the Performance Share Units or upon a Participant’s beneficial rights to such
Performance Share Units, the Performance Share Units and such rights shall, at the election of the
Committee, in its discretion, cease and terminate immediately.

8.3 Beneficiary Designation.

     Each Participant under the Plan may, subject to compliance with all applicable laws, name,
from time to time, any beneficiary or beneficiaries (who may be named contingently or successively)
to whom any benefit under the Plan is to be paid in the event of such Participant’s death before
such Participant receives any or all of such benefit. Each designation will 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 Committee during his lifetime. In
the absence of any such designation, benefits remaining unpaid at the Participant’s death shall be
paid to his estate.

8.4 Compliance with Statutes and Regulations.

     The granting of Awards and the purchase and delivery of Common Shares by the Trustee under
this Plan upon the vesting of Performance Share Units shall be carried out in compliance with
applicable law, including, without limitation, the rules, regulations and by-laws of the Toronto
Stock Exchange, the New York Stock Exchange, the U.S. Securities Exchange Act of 1934, as amended,
and the rules and regulations (including Rule 10b-5) promulgated thereunder, and the policies and
regulations of applicable securities regulatory authorities. If the Committee determines in its
discretion that, in order to comply with any such statutes or regulations, certain action is
necessary or desirable as a condition of or in connection with the granting of an Award or the
purchase or delivery of Common Shares under this Plan, no Award may be granted and no Common Shares
may be purchased or delivered unless that action shall have been completed in a manner satisfactory
to the Committee.

8.5 No Right to Employment.

     Nothing contained in this Plan or in any Award granted under this Plan shall confer upon any
person any rights to continued employment with an Employer or interfere in any way with the rights
of an Employer in connection with the employment or termination of employment of any such person.

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8.6 Participation.

     No Employee shall have a right to be selected as a Participant or, having been so selected, to
be selected again as a Participant.

8.7 Obligation to Withhold.

	 	(a)	 	If, for any reason whatsoever, an Employer becomes obligated to withhold and/or
remit to any applicable tax authority (whether domestic or foreign) any amount in
connection with this Plan in respect of a Participant, then the Employer shall provide
written notice of such obligation to the Participant and shall make the necessary
arrangements, as acceptable to the Employer, in connection with the amount that must be
withheld and/or remitted.
	 
	 	(b)	 	If, for any reason whatsoever, an Employer becomes obligated to make any tax
payment or primary Class 1 national insurance contribution in the United Kingdom in
respect of the acquisition of Common Shares by a Participant pursuant to this Plan (the
“UK Tax Liability”) or otherwise in relation to the Common Shares so acquired then, by
virtue of his or her participation in the Plan, each Participant acknowledges that the
applicable Employer shall be entitled to recover all such amounts from the Participant
by deduction, withholding or by any means whatsoever. For the avoidance of doubt, the
Company or another Employer (or an agent instructed by the Company or such other
Employer) shall be entitled to retain, out of the aggregate number of Common Shares to
which the Participant would otherwise be entitled pursuant to the Plan, and sell as
agent for the Participant such number of Common Shares as in the opinion of the Company
or such other Employer will realise an amount equivalent to the UK Tax Liability and to
pay such proceeds to the appropriate Employer to reimburse it for the UK Tax Liability.
The Company may also require a Participant to enter into a taxation agreement contained
within the Award Agreement.

8.8 Right to Amend and Terminate.

     Except as restricted by Section 8.9 and subject to applicable laws and regulations of
governmental authorities and applicable stock exchanges (i) the Committee or the Board may amend
any provisions of the Plan at any time, and (ii) the Committee or the Board may terminate the Plan
at any time, in either case in their discretion. If the Plan is so terminated, no further Awards
shall be granted but the Awards then outstanding shall continue in full force and effect in
accordance with the provisions of this Plan.

8.9 Restrictions.

     Notwithstanding Section 8.8, no such amendment or termination of the Plan shall divest any
Participant of his or her existing rights under the Plan with respect to any Awards previously
granted to such Participant without the prior written consent of the Participant except as may be
required to avoid adverse tax consequences to any Participant, including but not limited to,

-12-

 

modifications with respect to exemption from the requirements of section 409A of the United
States Internal Revenue Code of 1986, as amended, or compliance with the requirements thereof.

8.10 Governing Law.

     The Plan is established under the laws of the Province of Ontario and the rights of all
parties and the construction and effect of each and every provision of this Plan shall be according
to the laws of the Province of Ontario and the laws of Canada applicable therein.

8.11 Language.

     The Company states its express wish that this Plan and all documents related thereto be
drafted in the English language only; la société a par les présentes exprimé sa volonté expresse
que ce régime, de même que tous les documents y afférents, soient rédigés en anglais seulement.

8.12 Subject to Approval.

     The Plan is adopted subject to the approval, if required, of the Toronto Stock Exchange, The
New York Stock Exchange and the shareholders of the Company and any other required regulatory or
stock exchange approval. To the extent a provision of the Plan requires regulatory approval which
is not received, such provision shall be severed from the remainder of the Plan until the approval
is received and the remainder of the Plan shall remain in effect.

-13-

 

     NOW THEREFORE, this Plan is hereby adopted as of the effective date described in Section 1.2.

	 	 	 	 	 
	 	COTT CORPORATION

 	 
	 	By:  	/s/ Brent D. Willis
 	 
	 	 	Name:  	Brent D. Willis 	 
	 	 	Title:  	Chief Executive Officer 	 
	 	 	 
	 	By:  	     /s/ Betty Jane Hess
 	 
	 	 	Name:  	Betty Jane Hess 	 
	 	 	Title:  	Chair, Human Resources & Compensation Committee 	 
	 

GOODMANS\\5450705.4

-14-

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