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<PAGE>
EXHIBIT 10.2
EXECUTIVE
EMPLOYMENT AGREEMENT
THIS AGREEMENT made with effect as
of the 28th day of September, 2005
BETWEEN:
COTT CORPORATION
(the "CORPORATION")
-and-
MARK
BENADIBA
(the
"EXECUTIVE")
WHEREAS the Corporation currently
employs the Executive and the Executive
wishes to continue to be employed by the Corporation.
AND WHEREAS the Corporation and the
Executive are parties to an amended and
restated employment agreement dated October 15, 2003 and counter-signed by the
Executive on October 23, 2003 (the "2003 Employment Agreement").
AND WHEREAS the Corporation and the
Executive wish to terminate the 2003
Employment Agreement as of the Effective Date (as defined below), and have
negotiated terms and conditions for a fixed-term period of employment.
AND WHEREAS the Corporation and the
Executive have agreed to formalize the
terms and conditions agreed between them which will, as of the Effective Date,
govern the Executive's employment with the Corporation, all as set out in this
Agreement, and which will amend, supersede and replace any previous employment
agreement between the Corporation and the Executive (including, without
limitation, the 2003 Employment Agreement).
NOW THEREFORE in consideration of
the mutual covenants and promises set
forth herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged by each of the Corporation and the
Executive, the parties hereby covenant and agree as follows:
ARTICLE I -
DEFINITIONS AND INTERPRETATION
1.1 Definitions. For the purposes of this Agreement, the following words and
phrases shall have the following meanings:
(a) "AFFILIATE" has the same meaning as
given to such word in the
Securities Act (Ontario), as
amended or replaced from time to time.
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(b)
"AGREEMENT" means this agreement, including any schedules
hereto, as
amended, supplemented, or
modified in writing from time to time.
(c)
"BENEFITS" means those benefits and perquisites as described
in
Section 5.2 and in which the
Executive is participating as at the Date
of Termination but, for greater certainty,
excludes any share option,
share purchase, equity,
profit-sharing, bonus, or other incentive
plans or entitlements.
(d)
"BOARD" means the Board of Directors of the Corporation.
(e)
"BUSINESS" means the business of manufacturing, selling, or
distributing non-alcoholic
beverages or any other line of business
actively carried on by the
Corporation or in the Corporation's active
contemplation to the knowledge
of the Executive as at the Date of
Termination, including, without
limitation, the business carried on by
any Affiliate.
(f)
"COMPENSATION" shall mean the aggregate of the Executive's
annual base
salary and annual automobile
allowance as at the Date of Termination,
plus the Executive's target
annual incentive bonus (such annual
incentive bonus being capped at
100%) but, for greater certainty,
excludes any retention or
extraordinary bonuses, share option, share
purchase, equity,
profit-sharing, or long-term incentive plans, awards
or entitlements.
(g)
"CONFIDENTIAL INFORMATION" means information disclosed or
accessible
to the Executive or acquired by
the Executive as a result of his
employment with the Corporation
and which is not in the public domain
or otherwise required to be
publicly disclosed by applicable law and
includes, but is not limited
to, information relating to the
Corporation's or any of its
Affiliates' current, future or proposed
products/services or
development of new or improved products/services,
marketing strategies, sales or
business plans, the names and
information about the
Corporation's past, present and prospective
customers and clients,
technical data, records, reports, presentation
materials, interpretations,
forecasts, test results, formulae,
projects, research data,
personnel data, budgets, unpublished
financial statements,
Innovations, and any other information received
by the Corporation from third
parties pursuant to an obligation of
confidentiality.
(h)
"DATE OF TERMINATION" means the date of cessation of the
Executive's
employment without regard to
any notice of termination, pay in lieu of
notice of termination,
severance or other damages and, for greater
certainty, shall mean the
earliest of the following dates:
(i) the expiry of the Term;
(ii) the date of the
Executive's death; or
(iii) the date set out in any
written notice of
termination/resignation
delivered by the Corporation or the
Executive to the other
party.
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(i)
"EFFECTIVE DATE" means the effective date of this Agreement as
set
forth above, that is, September
28, 2005.
(j)
"INNOVATIONS" means any:
(i) processes, machines and compositions of
matter;
(ii) inventions and
improvements (whether or not protectable under
patent laws);
(iii) techniques, ideas,
concepts and programs;
(iv) works of authorship and information
fixed in any tangible medium,
including source code for
software, (whether or not protectable
under copyright laws) and
all moral rights therein;
(v) mask works or integrated circuit topography;
(vi) trademarks, trade names, trade dress and
trade secrets and
know-how (whether or not
protectable under trade secret laws);
(vii) other subject matter
protectable under patent, copyright, mask
work, trademark, trade
secret or other similar laws; or
(viii) any derivative works,
improvements, renewals, extensions,
continuations,
divisionals, continuations in part, or continuing
patent applications
relating to any Innovation.
(k)
"JUST CAUSE" means:
(i) the wilful and continued failure by the
Executive substantially
to perform his duties with
the Corporation (other than a failure
resulting from his
incapacity due to physical or mental illness)
after a written demand for
substantial performances delivered to
the Executive by the
Board, which demand specifically identifies
the manner in which the
Board believes that the Executive has not
substantially performed
his duties, and the Executive has failed
to correct such failure to
perform his duties within thirty (30)
days after such written
demand is delivered to him; or
(ii) the wilful engaging by the
Executive in conduct that is
demonstrably and
materially injurious to the Corporation,
monetarily or otherwise,
provided that no act or failure to act
on the Executive's part
shall be deemed "wilful" unless done, or
omitted to be done, by the
Executive not in good faith and
without reasonable belief
that his action or omission was in the
best interests of the
Corporation
(l)
"SEVERANCE PERIOD" shall mean the period commencing on the
Date of
Termination and ending
twenty-four (24) months thereafter.
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(m)
"TERRITORY" means:
(i) Canada;
(ii) every state or possession
of the United States of America; and
(iii) every country in which
the Corporation or any of its Affiliates
maintain an office and
actively carry on the Business
ARTICLE
II - TERM
2.1 Fixed Term. This Agreement shall commence on the Effective Date and this
Agreement and the Executive's employment shall be for a maximum fixed term of
three (3) years ending on September 27, 2008 (the "Term"), subject to
earlier
termination of the Executive's employment in accordance with Article VI below.
At the end of the Term, this Agreement and the Executive's employment are
wholly
and automatically at an end without notice or further obligation by the
Corporation to the Executive other than amounts or benefits earned and accrued
by the Executive and payable by the Corporation up to such expiry date. The
parties each acknowledge that there is no representation, warranty, covenant or
commitment to renew or extend the Term or the Executive's employment beyond the
expiry of the Term.
2.2 Consultancy: Notwithstanding Section 2.1 above, at the end of the Term and
effective as of the day following up the expiry of the Term, the Corporation
and
the Executive shall enter into a consultancy agreement substantially including
the terms and conditions and in the form attached as Schedule "A" to
this
Agreement.
ARTICLE III -
EMPLOYMENT AND POSITION
3.1 Position. Subject to the terms and conditions set out in this Agreement,
the
Corporation hereby agrees to employ the Executive, and the Executive hereby
agrees to serve the Corporation, in the position of Executive Vice President,
or
such other position as may be assigned to the Executive by the Corporation's
President and Chief Executive Officer or the Board but provided that such
position is of at least equivalent stature and level of responsibilities within
the Corporation.
3.2 Executive's Covenant. The Executive represents and warrants to the
Corporation that he is free to enter this Agreement and that he is not subject
to any obligation or restriction (statutory, contractual, or at common law)
which would prevent or interfere with the performance of all of his obligations
hereunder.
3.3 Place of Employment. The Executive shall provide his duties and services to
the Corporation at its office in Toronto, Ontario, or at such other place or
places within the greater Toronto area as the Corporation may determine from
time-to-time. The Executive's place, of employment will not be moved outside of
the greater Toronto area without his consent. The Executive acknowledges that,
in the ordinary course of business and in carrying out his duties for the
Corporation, he will have customary business travel obligations.
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ARTICLE IV
- DUTIES
4.1 Full-Time. The Executive's position with Corporation is a full-time one.
Therefore, throughout the duration of his employment, the Executive shall
devote
his full working time and attention to the business and affairs of the
Corporation, acting in the best interests of the Corporation at all times. The
Executive shall not, during his employment with the Corporation, accept nor
hold
any position as an officer, director, employee, consultant, or any like
position
for or on behalf of any entity without the prior written approval of the
Corporation, which approval may be withheld in its sole discretion.
4.2 Duties; Reporting. Reporting to and subject to the general direction of the
Corporation's President and Chief Executive Officer or as may otherwise be
designated by the Board (but provided that the Executive shall always report to
the most senior management executive officer of the Corporation), the Executive
shall perform such other duties and responsibilities consistent with such
position as may be assigned to him by the Corporation's President and Chief
Executive Officer or the Board from time-to-time. The Executive shall perform
all duties in accordance with the charter documents and by-laws of the
Corporation, the instructions of the Corporation's President and Chief
Executive
Officer and the Board, and all of the Corporation's policies and codes of
conduct, rules and regulations in effect from time to time. In addition to the
duties and responsibilities associated with his position, the Executive shall
perform such other duties and responsibilities consistent with the position as
may be assigned to him by the Corporation's President and Chief Executive
Officer or the Board from time to time. The Corporation's President and Chief
Executive Officer or the Board retain full authority to change the Executive's
duties and responsibilities and reporting relationships (but provided that the
Executive shall always report to the most senior management executive officer
of
the Corporation) and to assign new duties and responsibilities provided that
such changes do not result in a diminution of the scope or dignity of the
Executive's overall duties and responsibilities.
4.3 Compliance. Recognizing the Corporation's commitment to achieving the
highest standards of openness and accountability, the Executive shall raise, in
a prompt manner, any good faith concerns he has regarding the conduct of the
Corporation's business or compliance with the Corporation's financial, legal or
reporting obligations. Such good faith concerns should be brought first to the
attention of the Corporation's President and Chief Executive Officer or to the
Board.
ARTICLE V -
COMPENSATION AND BENEFITS
5.1 Signing Bonus. As an inducement to the Executive to sign this Agreement and
in full and final satisfaction of all of the Executive's payments, benefits,
rights and entitlements due or payable under the 2003 Employment Agreement, the
Corporation shall pay to the Executive a signing bonus of $1,000,000.00, such
payment to be made on a lump sum basis within ten (10) business days of the
execution of this Agreement by the Executive.
5.2 Base Salary. During his employment, the Corporation shall pay the Executive
a base salary of $500,000.00 annually, paid in such instalments and at such
times and in the same manner as the Corporation pays its other senior
executives
generally, but not less than monthly. The Executive's base salary will be
reviewed annually by the Human Resources and
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Compensation Committee (or as may otherwise be delegated by the Board) for
consideration of an increase, if appropriate, in its discretion.
5.3 Benefits. During his employment, the Executive shall be eligible to
participate in all benefits and all perquisites (including medical,
prescription, dental, disability, life, AD&D and travel insurance),
provided by
the Corporation on the same basis as similarly situated senior executives of the
Corporation employed in Canada, but excluding the Corporation's President and
Chief Executive Officer, as such plans and policies may be amended from
time-to-time. The Executive acknowledges and agrees that the benefits and
perquisites made available to him (including group insurance) are subject to
change in the Corporation's sole discretion, and further, any entitlement of
the
Executive is subject to and shall be governed by the terms and conditions of
any
written policies, plans, programs or contracts.
5.4 Automobile. During his employment, the Corporation shall pay to the
Executive an annual automobile allowance in accordance with the Corporation's
policy as it may be amended from time-to-time.
5.5 Vacation. For each year of employment during the Term, the Executive shall
accrue vacation in accordance with the Corporation's vacation policy for
management, currently five (5) weeks' paid vacation per calendar year, such
vacation to extend for such periods and to be taken at such intervals as shall
be appropriate and consistent with the proper performance of the Executive's
duties and as agreed upon between the Executive and the Corporation. To the
extent permitted by applicable law, accumulated vacation time or pay may not be
carried forward except with the prior approval of the Board.
5.6 Annual Bonus Incentive. For each year of employment during the Term, the
Executive shall be eligible for an annual bonus incentive with a target bonus
award of $575,000.00 (at 100%), and a potential maximum award based on
exceeding
achievements of $1,150,000.00 (at 200%). The Executive's annual bonus incentive
shall include the following components, terms and conditions:
(a)
Objectives (including all performance thresholds, targets and maximum
goals) will be set annually by
the Human Resources and Compensation
Committee (or as may otherwise
be delegated by the Board).
(b)
The level of achievement of all objectives will be evaluated by the
Human Resources and
Compensation Committee (or as may otherwise be
delegated by the Board) as soon
as possible following each fiscal
year.
(c)
Subject to Sections 6.3 and 6.4 below, bonuses, if any, shall be
earned only upon completion of
the relevant fiscal year of the
Corporation and shall be
payable after completion of the Corporation's
audited financial statements
for such fiscal year.
5.7 Reimbursement of Expenses. Upon presentation of proper receipts or other
proof of expenditure and subject to such reasonable guidelines or limitations
provided by the Corporation from time to time, the Corporation shall reimburse
the Executive for all reasonable and necessary expenses actually incurred by
the
Executive directly in connection with the business affairs of the Corporation
and the performance of his duties hereunder. The Executive shall comply with
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such reasonable limitations and reporting requirements with respect to such
expenses as the Board may establish from time to time.
5.8 Continuation of Benefits. All benefits, stock options and annual bonus
incentives to which the Executive was entitled immediately prior to the
execution of this Agreement shall, unless otherwise replaced or set out in this
Agreement, continue without loss or change as of the Effective Date. For
greater
certainty, all grants of stock options to the Executive shall be governed by
the
applicable plans and policies, specifically including and without limitation,
the Restated 1986 Common Share Option Plan of the Corporation, as they may be
amended from time-to-time.
5.9 No Other Entitlements. The Executive is not entitled to any other payment,
benefit, perquisite, allowance or entitlement other than as specifically set
out
in this Agreement or as otherwise agreed to in writing and signed by the
Corporation and the Executive.
ARTICLE VI -
TERMINATION OF EMPLOYMENT
6.1 Early Termination. Notwithstanding any other provision in this Agreement,
the Executive's employment may be terminated at any time as follows:
(a)
Death. This Agreement and the Executive's employment shall
automatically terminate upon
the death of the Executive.
(b)
Just Cause. The Corporation may terminate this Agreement and the
Executive's employment at any
time forthwith for any Just Cause.
(c)
Without Just Cause. The Corporation may terminate this Agreement and
the Executive's employment at
any time without Just Cause and for any
reason or no reason whatsoever
by providing written notice to the
Executive specifying the
effective Date of Termination (which may be
forthwith).
(d)
Resignation. The Executive may terminate this Agreement and his
employment at any time by providing
written notice to the Board
specifying the effective date
of termination (such date being not less
than three (3) months and not
more than six (6) months after the date
of the Executive's written
notice). The Corporation may elect to deem
any date prior to the date
specified in the notice as the Date of
Termination.
6.2 Termination for Just Cause or Resignation. If this Agreement and the
Executive's employment is terminated pursuant to subsections 6.1(b) or 6.1(d)
above, then the Corporation shall pay to the Executive an amount equal to the
base salary and vacation pay earned by and payable to the Executive up to the
Date of Termination and the Executive shall have no entitlement to any further
notice of termination, payment in lieu of notice of termination, severance, or
any damages whatsoever. Participation in all bonus plans (specifically
including
all short and long term incentive plans) or other stock option, equity, or
profit participation plans terminates immediately upon the Date of Termination
and the Executive shall not be entitled to any additional bonus or incentive
award, pro rata or otherwise, except as may have been owing to him for the
Corporation's fiscal year immediately preceding the Date of Termination.
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6.3 Termination by Reason of Death. If this Agreement and the Executive's
employment is terminated pursuant to subsections 6.1(a) above, then the
Corporation shall pay to the Executive an amount equal to the base salary and
vacation pay earned by and payable to the Executive up to the Date of
Termination and the Executive shall have no entitlement to any further notice
of
termination, payment in lieu of notice of termination, severance, or any
damages
whatsoever. Participation in all bonus plans (specifically including all short
and long term incentive plans) or other stock option, equity, or profit
participation plans terminates immediately upon the Date of Termination, but
the
Corporation shall pay to the Executive his bonus or incentive entitlements (if
any) calculated pro rata for the period up to the Date of Termination based on
achievement of the bonus incentive target to such date, such payment(s) being
made immediately if the amount can be readily determined but, in any event, no
later than thirty (30) days following the completion of the audited financial
statements for the fiscal year in which the Date of Termination occurs.
6.4 Termination Without Just Cause. If this Agreement and the Executive's
employment is terminated by the Corporation without Just Cause pursuant to
subsection 6.1(c) above, then the following provisions shall apply:
(a)
The Corporation shall pay to the Executive an amount equal to the base
salary, car allowance, and
vacation pay earned by him and payable to
him up to the Date of
Termination.
(b)
Participation in all bonus plans (specifically including all short and
long term incentive plans)
stock option, equity, or profit
participation plans terminates
immediately upon the Date of
Termination. However, the
Corporation shall pay to the Executive his
bonus (if any) calculated pro
rata for the period up to the Date of
Termination based on
achievement of the annual bonus incentive target
to such date, such payment(s)
being made immediately if the amount can






