Document:

coke-ex103_207.htm

Exhibit 10.3

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETED ASTERISKS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

COCA-COLA PLAZA

ATLANTA, GEORGIA

 

			
	
J. Alexander M. Douglas, Jr.

President, Coca-Cola North America

 
	
 
	
P. O. Box 1734

Atlanta, GA  30301

______

404 676-4421

Fax 404-598-4421

 

June 22, 2017

 

J. Frank Harrison III

Chairman and Chief Executive Officer

Coca-Cola Bottling Co. Consolidated

4100 Coca-Cola Plaza

Charlotte, NC  28211

 

	
 
	
Re: 
	
Amendment to Upfront Purchase Price Adjustment for Transfer Sales Return Letter Agreement

 

Dear Frank,

Reference is made to that certain letter agreement, dated as of March 31, 2017 (the “TSR Letter Agreement”), by and between The Coca‐Cola Company, a Delaware corporation (“Company”), and Coca-Cola Bottling Co. Consolidated, a Delaware corporation (“Bottler”), regarding certain valuation adjustments agreed to by Company and Bottler and certain credits or payments to be made by Company to Bottler in connection with (a) Bottler’s acquisition of production facilities from Coca‐Cola Refreshments USA, Inc., a Delaware corporation and a wholly-owned subsidiary of Company (“CCR”), and (b) the conversion to the RMA (as defined therein) of the bottle contracts authorizing Bottler to manufacture, produce and package certain Company‐owned and –licensed beverage products at its legacy production facilities.  Capitalized terms used and not otherwise defined in this letter agreement have the respective meanings ascribed to such terms in the TSR Letter Agreement. 

This letter agreement sets forth the mutual agreement of Company and Bottler that the TSR Letter Agreement is hereby amended by deleting the sixth paragraph thereof in its entirety and replacing such paragraph with the following: 

The Legacy Facility Credit for Bottler will be calculated by Company following the date hereof in accordance with the formula Legacy Facility Credit = [X]/[Y], where “[X]” is the pre-tax annual return earned by Bottler on historical sales of Authorized Covered Beverages produced at the Legacy Facilities (the “Exports Return”), net of the cost difference to Bottler under 

 

Classified – Confidential

the pricing set forth in the RMA for Bottler’s purchases for distribution in the First-Line Territory of Authorized Covered Beverages produced by other Regional Producing Bottlers (the “Imports Cost Difference”), and “[Y]” is [***].  For purposes of the foregoing formula, (a) the Exports Return will be an amount equal to (i) Bottler’s annual net revenue on sales to other U.S. Coca-Cola Bottlers of Authorized Covered Beverages produced at the Legacy Facilities (calculated as Bottler’s historic price by SKU in 2016 for such sales after any applicable deducts, credits, or other adjustments provided to the buyer multiplied by Bottler’s annual sales volume by SKU for all such transfer sales), less (ii) Bottler’s actual manufacturing cost of goods (calculated as Bottler’s actual manufacturing cost of goods per physical case in accordance with the NPSG Standardized Methodology (as defined below) multiplied by Bottler’s annual sales volume by SKU for all such transfer sales), less (iii) Bottler’s centrally managed production expenses (calculated based on the per case rate agreed by Company and Bottler multiplied by Bottler’s 2016 annual sales volume by SKU for all such transfer sales), less (iv) Bottler’s actual freight cost for such sales (calculated per physical case in accordance with the NPSG Standardized Methodology (as defined below) multiplied by Bottler’s annual sales volume by SKU for all such transfer sales); and (b) the Imports Cost Difference will be an amount equal to the sum of (i) (A) the difference between the historic price for Authorized Covered Beverages purchased by Bottler from other applicable Regional Producing Bottlers’ Expansion Facilities under the Finished Goods Supply Agreements between CCR and Bottler in effect during 2016 and the actual manufacturing costs of such Authorized Covered Beverages (calculated in accordance with the NPSG Standardized Methodology), multiplied by (B) the volume of Authorized Covered Beverages by applicable SKU purchased in 2016 by Bottler for distribution in its legacy territory from other Regional Producing Bottlers’ Expansion Facilities, plus (ii) (A) the difference between the historic price by SKU in 2016 charged to Bottler by other Regional Producing Bottlers for Authorized Covered Beverages in Bottler’s legacy distribution territory and the actual manufacturing costs of such Authorized Covered Beverages purchased by Bottler from such other Regional Producing Bottlers’ legacy facilities (calculated in accordance with the NPSG Standardized Methodology), multiplied by (B) the volume of Authorized Covered Beverages by applicable SKU purchased by Bottler in 2016 for distribution in its legacy territory from other Regional Producing Bottlers’ legacy facilities.  As used herein, “NPSG Standardized Methodology” means the standardized methodology determined by the NPSG to calculate [***]. Bottler acknowledges that Bottler’s historical financial data is necessary to compute the Legacy Facility Credit described above and that such data is subject to review and validation by the Company prior to the payment of any Legacy Facility Credit.

 

Classified – Confidential

2

 

[***] – THIS CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.

 

Except as expressly set forth in this letter agreement, all terms of the TSR Letter Agreement shall continue in full force and effect.

[Remainder of page intentionally left blank; signature page follows]

 

 

Classified – Confidential

3

Very truly yours,

/s/ J. A. M. Douglas, Jr.

J. Alexander M. Douglas, Jr.

President, Coca-Cola North America

 

 

Agreed to and Accepted
as of the date first written above:

 

COCA-COLA BOTTLING CO. CONSOLIDATED

 

		
	
By:
	
/s/ James E. Harris

     Name:  James E. Harris

     Title:    Executive Vice PresidentExhibit

Exhibit 10.1

April 14, 2017

Richard King

Dear Richard:

We are very excited to have you join Adamas Pharmaceuticals, Inc. (“the Company”).  In this letter, I would like to set forth the terms and conditions of your employment relationship with the Company.

Title and Responsibilities.  I am pleased to offer you the full-time position of Chief Operating Officer working at our offices in Emeryville, CA.  Your position with the Company, pursuant to the terms and conditions of this letter and accompanying Confidential Information and Invention Assignment Agreement, will commence on April 28, 2017.  You will report to me and your duties and responsibilities include, but are not limited to, leading the commercial and operations organizations, including marketing, sales, market access, distribution, technical operations, information technology, and product planning.  Of course, the Company may change your position, duties, and work location from time to time. 

Compensation.  You will initially receive an annual base salary of $470,000.  Your salary will be paid periodically in accordance with normal Company payroll practices and are subject to the usual required deductions and tax withholdings. In addition to your salary, you will be eligible to participate in the Company’s Bonus Plan, as described in the applicable Plan Document, pursuant to the terms of this Plan.  The annual target bonus for your position is forty percent (40%) of your annual base salary, and any award would be based upon both the Company’s achievement of its performance goals and your achievement of your personal goals to be set with me. The actual award, if any, will be prorated from your date of hire for your first year of employment and will be subject to the usual required deductions and tax withholdings.  The Company may change your compensation and benefits from time to time in its sole discretion.

Equity Awards.  In addition, subject to the approval of the Company’s Board of Directors or its Compensation Committee, it will be recommended that as a material inducement to you to accept this offer and to enter into employment with the Company, it will be recommended that you be granted two equity awards, each of which will be granted under, and be subject to the terms of, either the Company’s 2014 Equity Incentive Plan, or the Company’s 2016 Inducement Plan (each, the “Plan”).  The equity awards will be: (1) a stock option to purchase 168,750 shares of the Company’s common stock (the “Option”), and (2) an award of 28,125 Restricted Stock Units (the “RSU Award”).  The exercise price per share of the Option will equal the fair market value of a share of Common Stock on the date of grant, as determined by the Board of Directors or Compensation Committee.  If approved, and provided that you remain in Continuous Service to the Company on each date, 25% of the Option shares shall vest and become exercisable on the one year anniversary of your employment commencement date and an additional 1/48th of the Option shares shall vest and become exercisable on a monthly basis thereafter over the following 36 months, as described in the applicable Plan and your Option grant documents.   If approved, and provided that you remain in Continuous Service to the Company on each date, 25% of the shares under the RSU Award will vest annually, as described in the applicable Plan and your RSU Award grant documents.

1900 Powell St. Suite 750     Emeryville, CA 94608
Tel|510.450.3500   Fax|510.428.0519
www.adamaspharma.com

Sign-on Advance.  The Company will provide you a sign-on advance in the amount of $204,250, less customary deductions and withholdings (the “Advance”).  The Company will pay this Advance to you during your first month of employment.  You will earn the full amount of the Advance if you remain employed with the Company for a total of two (2) years.  Accordingly, you acknowledge and agree that if you voluntarily resign from the Company within one (1) year of receiving this Advance, you will be obligated to return the full amount of the Advance to the Company within thirty (30) days of your employment separation date.  You further acknowledge and agree that should you voluntarily resign from the Company at any time after one (1) year of receipt of this payment but before completing two (2) years of service with the Company, you will be obligated to return a prorated amount of the Advance, calculated based on your employment termination date.  You will be required to repay that prorated amount of the Advance within thirty (30) days of your employment separation date. 

Benefit Plans.  During your employment with the Company, you will be eligible to participate in the employee benefit plans currently and hereafter maintained by the Company of general applicability to other employees of the Company.  Details about these benefits are provided in the Employee Handbook and Summary Plan Descriptions, available for your review. Where a particular benefit is subject to a formal plan (for example, medical insurance or life insurance), eligibility to participate in and receive any particular benefit from the plan is governed solely by the applicable plan document.   

Paid Time Off.  As part of these benefits, you will be entitled to paid time off (“PTO”) in accordance with the Company’s PTO policy as in effect from time to time.  Currently, the Company offers full-time employees 21 days of PTO per calendar year.  

Executive Severance Plan.  Given your position with the Company, you will initially be eligible to participate in the Executive Severance Plan pursuant to the terms of that Plan.  
 
Company Policies and Confidential Information.  You will be expected to abide by all Company rules and policies, and acknowledge in writing that you have read and will comply with the Company’s Employee Handbook.  The Company considers the protection of its confidential information, proprietary materials and goodwill to be extremely important.  Consequently, as a condition of your employment with the Company, you also are required to sign and fully comply with the Confidential Information and Invention Assignment Agreement enclosed with this letter.  In your work for the Company, you will be expected not to use or disclose any confidential information or materials, including trade secrets, of any former employer or other person to whom you have an obligation of confidentiality.  Rather, you will be expected to use only that information which is generally known and used by persons with training and experience comparable to your own, which is common knowledge in the industry or otherwise legally in the public domain, or which is otherwise provided or developed by the Company.

Conflicting Outside Employment.  While employed by the Company, you may not work as an employee or consultant of any other organization or engage in any other activities which conflict or interfere with your employment obligations to the Company, including working for a competitive organization, or undertaking any activities that could create a conflict of interest. Notwithstanding the foregoing, you will be allowed to serve as a Director on the Board of Directors for up to two external organizations, provided that such activities do not interfere with your job duties or present a conflict of interest with Adamas.  Any 

1900 Powell St. Suite 750     Emeryville, CA 94608
Tel|510.450.3500   Fax|510.428.0519
www.adamaspharma.com

such role is to be reviewed and approved by the Adamas Board of Directors or its delegate, and such approval will not be unreasonably withheld.

At-Will Employment.  Your employment with the Company is “at-will,” which means that either you or the Company may terminate your employment at any time, with or without cause, and with or without advance notice.  No provision of this offer letter or the accompanying Confidential Information and Invention Assignment Agreement shall be construed to create an express or implied employment contract, or a promise of employment for any specific period of time.    

Authorization to Work.  This offer is conditioned upon the following:  (1) you presenting sufficient evidence of your authorization to work in the United States and your identity sufficient to allow the Company to complete the Form I-9 required by law; (2) satisfactory completion of a background and reference check; and (3) your signature on the Confidential Information and Invention Agreement.  You agree to assist as needed and to complete any documentation at the Company’s request to meet these conditions.
    
Integration, Modification and Governing Law.  This letter, together with your Employee Confidential Information and Invention Agreement, forms the complete and exclusive statement of your employment agreement with the Company.  It supersedes any other agreements or promises made to you by anyone, whether oral or written.  Changes in your employment terms, other than those changes expressly reserved to the Company’s discretion in this letter, require a written modification signed by an officer of the Company.  The unenforceability of any provision of this agreement will not affect the validity or enforceability of any other provision of the agreement.  This letter will be governed by the laws of the state of California.

Please contact me at (510) 450-3502 if you have any questions.  I am happy to welcome you to the Company, and I look forward to your participation in the Company’s future success.  Please sign below to indicate your acceptance and agreement to the terms set forth in this offer letter and return the signed offer letter to your Human Resources Representative.  

This offer will expire on April 17, 2017, unless accepted by you in writing prior to such date.  
 
Best regards,

/s/ Gregory T. Went

Gregory T. Went
Chief Executive Officer & Chairman
Adamas Pharmaceuticals, Inc.

Enclosures:

Confidential Information and Inventions Agreement
    

1900 Powell St. Suite 750     Emeryville, CA 94608
Tel|510.450.3500   Fax|510.428.0519
www.adamaspharma.com

ACCEPTANCE OF EMPLOYMENT OFFER

I, Richard King, have read, understand, and accept employment on the terms and conditions outlined in this letter agreement.  I am not relying on any representations made to me by anyone other than as set forth above.

	
					
	/s/ Richard King
	 
	 
	April 17, 2017
	 

	Richard King
	 
	 
	Date
	 

1900 Powell St. Suite 750     Emeryville, CA 94608
Tel|510.450.3500   Fax|510.428.0519
www.adamaspharma.com

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