Document:

EX-10.40

 

Exhibit 10.40

February 21, 2008

Jose Fernandez

214 18TH Street

Pacific Grove, CA 93950

Dear Jose:

The purpose of this letter is to clarify and reduce to writing various arrangements associated with
your employment by Constellation Wines U.S., Inc. (the “Company”), which is a subsidiary of
Constellation Brands, Inc. (“CBI”). You currently hold the position of Chief Executive Officer,
Constellation Wines North America and you currently report to me.

	 	•	 	You currently have been designated an “Executive Officer” of CBI and, as such, the base
salary, bonus and perquisites of your position are as established from time to time by the
Human Resources Committee of the CBI Board of Directors. Your current bi-weekly base
compensation remains $25,000.00 ($650,000 annually) subject to all deductions and
withholdings required by law.
	 
	 	•	 	Your primary business locations are based in California and New York State but you will
be expected to engage in reasonable business travel to other locations in North America.
If you own homes in both California and New York, you will receive a $3,000 monthly
allowance to assist in defraying the costs of maintaining households in both California and
New York. Alternatively, if you do not own homes in both locations, but still maintain
dual primary business locations, we will provide you with reasonable housing, rental of
associated furnishings, coverage of utilities and maintenance and reimbursement of
reasonable travel for your spouse. Of course, you will be responsible for all taxes
associated with payment of the monthly allowance or the alternative in-kind benefits and
reimbursements and for your personal tax filings.
	 
	 	•	 	If you are terminated by the Company for any reason other than cause, you will be paid,
less applicable state and federal tax withholdings, severance that shall be a sum equal to
one year’s total compensation. For this purpose, “total compensation” is defined as base
salary and bonus at target. Bonus will be paid on a pro-rata basis for the term of actual
employment, based on the terms and conditions of the bonus program and the performance of
the company at the time employment is terminated. Payment of Severance is conditioned upon
your agreement to the terms of and execution of the Company’s standard form of Severance
Agreement, General Release and Waiver, as such may be amended by the Company or CBI from
time to time, which must be executed within thirty-five (35) calendar days of your
termination of employment. Such Severance shall be paid in a lump sum no later than twenty
(20) calendar days following your execution and delivery to the Company of the
aforementioned Severance Agreement, General Release and Waiver.
	 
	 	•	 	You are eligible to participate in all existing employee benefit plans as you become
eligible under the terms of such plans as amended, added to or discontinued from time to
time, such as health care, disability insurance, life insurance, profit sharing, 401(k),
paid time off and employee stock purchase plans.

 

 

Lastly, by executing this letter agreement, you acknowledge and agree that your employment is at
will, meaning that it can be terminated by you or by the Company (including CBI) at any time, with
or without cause. You further understand and agree that this letter constitutes the entire
agreement of the parties, and is governed by New York State law. You hereby consent to binding
arbitration under the rules of the American Arbitration Association as they relate to commercial
disputes in Rochester, New York as the sole and exclusive means for resolution of any disputes that
may arise hereunder or in connection with your employment. No arbitration award shall include any
punitive, incidental, consequential or special damages of any kind. Any such arbitration award may
be entered in any court having appropriate jurisdiction.

This letter agreement supersedes all other arrangements, whether written or oral, which may
currently exist between you and the Company or any of its affiliates, and this letter agreement
cannot be modified or amended, except in writing executed by an Executive Officer of CBI.

Please confirm your agreement by signing and returning to me the enclosed copy of this letter.

Sincerely,

	 	 	 	 	 
	 	 	 
	/s/ Robert Sands
 	 
	Robert Sands 	 
	President and Chief Executive Officer 	 

Accepted and Agreed to this 21st day of Feb, 2008.

	 	 	 	 	 
	 	 	 
	/s/ Jose Fernandez
 	 
	Jose Fernandez 	 
	 	 	 

370 Woodcliff Drive, Suite 300, Fairport, New York 14450

phone 585 218-3600 / fax 585-218-3601EX-10.41

 

Exhibit 10.41

			
	 	 	 
	 
	 	Constellation Brands, Inc.
	 
	 	370 Woodcliff Drive, Suite 300
	[LOGO]
	 	Fairport, NY 14450
	Constellation
	 	phone 585-218-3600
	 
	 	fax 585-218-3601

February 21, 2008

Jon Moramarco

3791 Rocky Knoll Way

Santa Rosa, CA 95404

Dear Jon:

The purpose of this letter is to clarify and reduce to writing various arrangements associated with
your employment by Constellation Brands., Inc. (“CBI” or the “Company”). You currently hold the
position of Chief Executive Officer, Constellation International and you currently report to me.

	 	•	 	You currently have been designated an “Executive Officer” of CBI and, as such, the base
compensation, bonus and perquisites of your position are as established from time to time
by the Human Resources Committee of the CBI Board of Directors.
	 
	 	•	 	During the period February 21, 2006 through February 28, 2007, you performed services
for us on assignment in the United Kingdom. In connection with services performed in that
assignment, you will be provided professional tax services by the Company approved vendor
to assist in your filings and tax equalization.
	 
	 	•	 	If you are terminated by the Company without cause, as determined in the sole discretion
of the Company, you will receive eighteen (18) months of base compensation (“Severance”) in
full and final satisfaction of all the Company’s obligations to you arising out of such
termination, conditioned upon your agreement to the terms of and execution of the Company’s
standard form of Severance Agreement, General Release and Waiver, as such may be amended by
the Company from time to time, which must be executed within thirty-five (35) calendar days
of your termination of employment. Such Severance shall be paid in a lump sum no later
than twenty (20) calendar days following your execution and delivery to the Company of the
aforementioned Severance Agreement, General Release and Waiver.
	 
	 	•	 	You are eligible to participate in all existing employee benefit plans as you become
eligible under the terms of such plans as amended, added to or discontinued from time to
time, such as health care, disability insurance, life insurance, profit sharing, 401(k),
paid time off and employee stock purchase plans.

Lastly, by executing this letter agreement, you acknowledge and agree that your employment is at
will, meaning that it can be terminated by you or by the Company (including CBI) at any time, with
or without cause. You further understand and agree that this letter constitutes the entire
agreement of the parties, and is governed by New York State law. You hereby consent to binding
arbitration under the rules of the American Arbitration Association as they relate to commercial
disputes in Rochester, New York as the sole and exclusive means for resolution of any disputes that
may arise hereunder or in connection with your employment. No arbitration award shall include any
punitive, incidental, consequential or special damages of any kind. Any such arbitration award may
be entered in any court having appropriate jurisdiction.

 

 

This letter agreement supersedes all other arrangements, whether written or oral, which may
currently exist between you and the Company or any of its affiliates, and this letter agreement
cannot be modified or amended, except in writing executed by an Executive Officer of CBI.

Please confirm your agreement by signing and returning to me the enclosed copy of this letter.

Sincerely,

	 	 	 	 	 
	 	 	 
	   /s/ Robert Sands
 	 	 
	Robert Sands 	 	 
	President and Chief Executive Officer 	 	 
	 

Accepted and Agreed to this 21st day of February, 2008.

	 	 	 	 	 
	 	 	 
	   /s/ Jon Moramarco
 	 	 
	Jon Moramarco 	 	 
	 	 	 
	 

370 Woodcliff Drive, Suite 300, Fairport, New York 14450

phone 585-218-3600 / fax 585-218-3601EX-4.1

 

Exhibit 4.1

AMENDMENT NO. 2 TO AMENDED AND RESTATED RIGHTS AGREEMENT

     This AMENDMENT NO. 2 (this “Amendment”) to the Amended and Restated Rights Agreement, dated as
of December 8, 1997, between Wendy’s International, Inc., an Ohio corporation (the “Company”), and
American Stock Transfer and Trust Company, as rights agent (the “Rights Agent”), as amended by
Amendment No. 1 to Amended and Restated Rights Agreement, dated as of January 26, 2001 (as so
amended, the “Rights Agreement”), is by and between the Company and the Rights Agent and is entered
into as of April 23, 2008. Capitalized terms used but not otherwise defined herein shall have the
respective meanings ascribed to such terms in the Rights Agreement.

     WHEREAS, Section 27 of the Rights Agreement permits the Company to amend the Rights Agreement
in the manner provided therein at any time prior to the Distribution Date, and there has not been a
Distribution Date.

     NOW, THEREFORE, the Rights Agreement is hereby amended as follows:

     Section 1. Amendments to Rights Agreement. The Rights Agreement is hereby amended as follows:

     (a) The definition of “Acquiring Person” set forth in Section 1(a) of the Rights Agreement is
hereby amended to add the following sentence at the end thereof:

     “In addition, and notwithstanding anything in this Rights Agreement that might
otherwise be deemed to the contrary, none of Triarc, Merger Sub, any party to a Voting
Agreement, any Person who as of the date hereof has filed a joint Schedule 13D with Triarc
with respect to the Company, or any of the respective Affiliates or Associates of any of the
foregoing, either individually or in any combination, shall be or become an Acquiring Person
solely by virtue of one or more of the following: (i) the public or other announcement or
disclosure of the Merger (as such term is defined in the Merger Agreement), the Merger
Agreement or any of the transactions contemplated by the Merger Agreement, including,
without limitation, the Voting Agreements, (ii) the execution, delivery or performance of
the Merger Agreement or the Voting Agreements or (iii) the consummation of the Merger or any
of the other transactions contemplated by the Merger Agreement (each such event described in
clauses (i), (ii) and (iii), an “Exempt Event”).”

     (b) The following definitions are hereby added to Section 1 of the Rights Agreement:

     “(o) “Effective Time” shall have the meaning set forth in the Merger Agreement.”

     “(p) “Merger Agreement” shall mean that certain Agreement and Plan of Merger, dated as
of the date hereof, by and among the      Company, Triarc and Merger Sub, as such agreement
may be amended from time to time.”

     “(q) “Merger Sub” shall mean Green Merger Sub, Inc., an Ohio corporation.”

 

 

     “(r) “Triarc” shall mean Triarc Companies, Inc., a Delaware corporation.”

     “(s) “Voting Agreements” shall mean that certain Voting Agreement, dated as of the date
hereof, by and among the Company and the parties listed on Annex I thereto, and that
certain Voting Agreement, dated as of the date hereof, by and among Triarc and the
parties listed on Annex I thereto.”

     (c) Section 1(j) of the Rights Agreement is hereby amended by adding the following sentence at
the end thereof:

     “Notwithstanding anything in this Rights Agreement that might otherwise be deemed to
the contrary, a Stock Acquisition Date shall not be deemed to have occurred solely as a
result of an Exempt Event.”

     (d) Section 1(l) of the Rights Agreement is hereby amended by adding the following sentence at
the end thereof:

     “Notwithstanding anything in the Rights Agreement that might otherwise be deemed to the
contrary, in no event shall an Exempt Event constitute a Transaction.”

     (e) Section 3(a) of the Rights Agreement is amended to add the following sentence at the end
thereof:

     “Notwithstanding anything in this Rights Agreement that might otherwise be deemed to
the contrary, a Distribution Date shall not be deemed to have occurred solely as the result
of an Exempt Event.”

     (f) The first sentence of Section 7(a) of the Rights Agreement is hereby deleted in its
entirety and replaced with the following:

     ”(a) The registered holder of any Rights Certificate may exercise the Rights evidenced
thereby (except as otherwise provided herein) in whole or in part at any time after the
Distribution Date upon presentation of the Rights Certificate, with the appropriate form of
election to purchase on the reverse side thereof duly executed, to the Rights Agent at the
principal office of the Rights Agent, together with payment of the Purchase Price for each
one ten-thousandth of a share of Preferred Stock (or such other number of shares or other
securities) as to which the Rights are exercised, at or prior to the earliest of (i) the
close of business on August 10, 2008 (the “Final Expiration Date”), (ii) the time at which
the Rights are redeemed, as provided in Section 24 hereof, or (iii) immediately prior to the
Effective Time (such earliest time being herein referred to as the “Expiration Date”).”

2

 

     (g) Section 11(a)(ii) of the Rights Agreement is hereby amended by adding the following
sentence at the end thereof:

     “Notwithstanding anything in the Rights Agreement that might otherwise be deemed to the
contrary, in no event shall an Exempt Event cause an adjustment to the Rights pursuant to
this Section 11(a)(ii).”

     (h) The first sentence of Section 13(a) of the Rights Agreement is hereby amended by deleting
the word “mortgage” in both instances in which such word appears in clause (z) of such sentence.

     Section 2. Certification. This Section 2 shall constitute a certificate from an appropriate
officer of the Company for purposes of Section 27 of the Rights Agreement, and the Company and the
officer of the Company signing this Amendment below, on behalf of the Company, (i) hereby certify
that to their knowledge this Amendment is in compliance with the terms of Section 27 of the Rights
Agreement and (ii) request and direct that the Rights Agent execute and deliver this Amendment, in
accordance with Section 27.

     Section 3. Full Force and Effect. Except as expressly amended hereby, the Rights Agreement shall
continue in full force and effect unamended and in accordance with the provisions thereof on the
date hereof.

     Section 4. Governing Law. This Amendment shall be governed by and construed in accordance with the
laws of the State of Ohio applicable to contracts to be made and performed entirely within such
State.

     Section 5. Severability. If any term, provision, covenant or restriction of this Amendment is held
by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions of this Amendment shall remain in
full force and effect and shall in no way be affected, impaired or invalidated.

     Section 6. Counterparts. This Amendment may be executed in any number of counterparts, each of
which shall be deemed an original, and all of which together shall constitute one and the same
instrument.

[SIGNATURE PAGE FOLLOWS]

3

 

     IN WITNESS WHEREOF, the Company and the Rights Agent have caused this Amendment to be duly
executed as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	COMPANY:	 	 
	 
	 	 	 	 	 	 
	 	 	WENDY’S INTERNATIONAL, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Leon M. McCorkle, Jr.	 	 
	 

	 	 	 	 

Name: Leon M. McCorkle, Jr.
	 	 
	 

	 	 	 	Title: EVP, GC	 	 
	 
	 	 	 	 	 	 
	 	 	RIGHTS AGENT:	 	 
	 
	 	 	 	 	 	 
	 	 	AMERICAN STOCK TRANSFER AND TRUST COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Herbert J. Lemmer
 

Name: Herbert J. Lemmer
	 	 
	 

	 	 	 	Title: Vice President	 	 

Signature
Page to Amendment No. 2 to Amended and Restated Rights Agreement

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