UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Current Report

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): September 30, 2016

MOLSON COORS BREWING COMPANY
(Exact name of registrant as specified in its charter)

Commission File Number: 1-14829

1801 California Street, Suite 4600, Denver, Colorado 80202
1555 Notre Dame Street East, Montréal, Québec, Canada, H2L 2Rz
(Address of principal executive offices, including zip code)

(303) 927-2337 / (514) 521-1786
(Registrant’s telephone number, including area code)

Not applicable
(Former name or former address, if changed since last report)




Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))




Item 1.01 Entry Into a Material Definitive Agreement.

Amendment No. 2 to Purchase Agreement

As previously disclosed, on November 11, 2015, Molson Coors Brewing Company (the “Company”) and Anheuser-Busch InBev SA/NV (“ABI” and, together with the Company, the “Parties”) entered into a Purchase Agreement, as amended by that certain Amendment No. 1 to Purchase Agreement on March 25, 2016 (the “Purchase Agreement”), pursuant to which the Company will acquire (such acquisition, the “Transaction”), contingent upon the closing of the acquisition of SABMiller plc (“SABMiller”) by ABI pursuant to the transaction announced on November 11, 2015 (the “ABI-SABMiller Transaction”), all of SABMiller’s interest in MillerCoors LLC (“MillerCoors”) and all of the trademarks, contracts and other assets primarily related to the Miller brand portfolio outside of the U.S. and Puerto Rico.

On October 3, 2016, the Parties entered into Amendment No. 2 to Purchase Agreement (“Amendment No. 2”), pursuant to which the Parties, among other things, (a) aligned upon the closing date for the Transaction, (b) extended the deadline for the delivery of any proposed purchase price adjustment, purchase price allocation and related objections, (c) clarified certain definitions, rights and obligations regarding transferred assets, (d) provided further detail regarding the process for addressing various ancillary agreements related to the MillerCoors joint venture, and (e) amended certain confidentiality, cooperation, intellectual property and commercial restriction provisions.

The foregoing description of Amendment No. 2 is qualified in its entirety by reference to Amendment No. 2, a copy of which is attached as Exhibit 2.1 hereto, and is incorporated by reference herein.

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain
Officers; Compensatory Arrangements of Certain Officers.

As a consequence of the Transaction and resultant integration planning, on September 30, 2016, the Company entered into an offer letter with Peter H. Coors subject to and to be effective upon the closing of the Transaction. Mr. Coors is currently the Vice Chairman of the Company’s Board of Directors. He is also currently the Executive Chairman of MillerCoors, a role for which Mr. Coors has been compensated by means of the employment agreement that took effect on January 1, 2009, and that was amended on December 10, 2013. The offer letter supersedes and replaces that employment agreement because Mr. Coors’s role as Executive Chairman of MillerCoors will no longer exist when MillerCoors becomes a fully-owned subsidiary of the Company. Without the new offer letter, severance benefits could have been due to Mr. Coors upon elimination of this position.

The offer letter provides for Mr. Coors to serve as the Company’s Chief Customer Relations Officer ("CCRO") with customer relations and ambassadorial responsibilities for Company brands, specifically Coors-branded products and has a fixed term beginning when the Transaction closes and concluding thirty-six months later. Mr. Coors will earn a base salary of $750,000 during the first twelve months following the closing of the Transaction, reduced from his current base salary of $850,000. His base salary will be $650,000 during the second twelve months following closing, and will be $550,000 during the third twelve months following closing. In recognition of Mr. Coors’s continued membership on the Company’s Board of Directors, Mr. Coors will not participate in the Company’s annual short or long term incentive compensation plans or Severance Pay Plan afforded to other members of the Company’s senior management team. As an executive of the Company, Mr. Coors will be eligible to participate in other Company benefit plans, and he will continue to participate in the Supplemental Executive Retirement Plan.

To aid in the retention of Mr. Coors in his new CCRO role and to recognize his acceptance of the offer letter with significantly reduced annual cash compensation and severance benefits as compared with his superseded employment agreement, upon the closing of the Transaction, Mr. Coors will be granted 12,000 cash-settled Restricted Stock Units ("RSUs"), which, subject to continued employment by Mr. Coors, will vest pro rata on December 31, 2017, 2018 and 2019. The vested RSUs will be settled in cash, net of tax, based on the value of the Company’s Class B common stock on the date of vesting.

If terminated by the Company for reasons other than cause, as defined in the offer letter, Mr. Coors will receive severance payments equal to the lesser of (i) twelve months’ base salary that he would have otherwise earned under the employment letter or (ii) the base salary remaining through the thirty-sixth month following closing, plus, in each case, accelerated prorated vesting of the cash-settled RSUs corresponding to the severance payment period.





Mr. Coors will also be required to sign a one year non-compete and confidentiality agreement as of the closing of the Transaction.

The foregoing description of Mr. Coors’ offer letter is qualified in its entirety by reference to the offer letter, a copy of which is attached as Exhibit 10.1 hereto, and is incorporated by reference herein.

Item 9.01.    Financial Statements and Exhibits.

(d)     Exhibits.


 
 
 
 
Exhibit 
No.
 
Description
2.1
 
Amendment No. 2 to Purchase Agreement, dated as of October 3, 2016, between Anheuser-Busch Inbev SA/NV and Molson Coors Brewing Company.*
 10.1
 
Offer Letter between Peter H. Coors and Molson Coors Brewing Company.


*     Schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K. We hereby undertake to supplementally provide copies of any omitted schedules to the Securities and Exchange Commission upon request.





Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
MOLSON COORS BREWING COMPANY  
 
 
 
 
 
 
 
 
Date:
October 4, 2016
By:
/s/ E. Lee Reichert
 
 
 
E. Lee Reichert
 
 
 
Deputy General Counsel and Secretary
 
 
 
 





Exhibit Index
 
 
 
 
Exhibit 
No.
 
Description
2.1
 
Amendment No. 2 to Purchase Agreement, dated as of October 3, 2016, between Anheuser-Busch Inbev SA/NV and Molson Coors Brewing Company.*
 10.1
 
Offer Letter between Peter H. Coors and Molson Coors Brewing Company.


*     Schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K. We hereby undertake to supplementally provide copies of any omitted schedules to the Securities and Exchange Commission upon request.



EXECUTION COPY

AMENDMENT NO. 2 TO PURCHASE AGREEMENT

THIS AMENDMENT NO. 2 TO PURCHASE AGREEMENT (this “ Amendment ”) is made and entered into as of October 3, 2016 by and between ANHEUSER-BUSCH INBEV SA/NV, a public company organized under the laws of Belgium (“ ABI ”), and MOLSON COORS BREWING COMPANY, a Delaware corporation (“ Buyer ”). Capitalized terms used and not otherwise defined herein have the meanings set forth in the Purchase Agreement (as defined below).
WHEREAS, ABI and Buyer are party to that certain Purchase Agreement, dated as of November 11, 2015 (as amended by that certain Amendment No. 1 to Purchase Agreement, dated as of March 25, 2016, the “ Purchase Agreement ”), regarding the sale by ABI to Buyer of the Acquired Assets and the assumption by Buyer from ABI of the Assumed Liabilities, all on the terms and subject to the conditions set forth therein; and
WHEREAS, ABI and Buyer now desire to amend further the Purchase Agreement upon the terms and conditions set forth in this Amendment.
NOW, THEREFORE, in consideration of the premises and of the mutual covenants, representations, warranties and agreements contained herein, the parties hereto agree as follows:
1. Amendments to Purchase Agreement .
(a)      Additional Definition . Section 1.01(a) of the Purchase Agreement is hereby amended to add in the appropriate alphabetical order the following new defined terms, which shall be defined as follows:
Additional Transferred Crates ” means a number of additional crates located in Panama that do not bear a Miller Brand that are owned by Miller Parent or any of its Subsidiaries equal to (i) 642,000 crates minus (ii) the number of Transferred Crates.
Buyer Confidential Information ” means any non-public, confidential or proprietary information related to the Transferred Assets or the JV, including, but not limited to, financial, technical, sales, marketing, development and personnel information, customer lists, supplier lists, trade secrets, designs, product formulations, product specifications, terms of arrangements with vendors or suppliers and all notes, analyses, compilations, summaries, extracts, studies, interpretations or other materials that contain, reflect or are based upon, in whole or in part, any such information, however recorded or preserved, whether written or oral and regardless of whether or not specifically marked as confidential.
Cooler ” means any cooler, refrigerator or similar cold storage space.
Existing Agreements ” means all of the agreements set forth on Schedule 7 hereto.
Existing CEE Agreement ” means the Licensed Brewing Agreement among StarBev Netherlands BV, Anheuser-Busch InBev S.A., Brauerei Beck GmbH & Co. KG., Lowenbrau AG and Spaten-Franziskaner-Brau GmbH, effective as of

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December 2, 2009, as amended as of December 23, 2009, May 27, 2011, July 15, 2011, February 2013 and December 2014.
Existing Russia Agreement ” means the Licensed Brewing Agreement among Pivovary Staropramen A.S., OJSC Sun Inbev and Anheuser-Busch Inbev NV/SA, effective as of December 2, 2009.
Existing Ukraine Agreement ” means the Restated and Amended Licensed Brewing Agreement among Pivovary Staropramen A.S., OJSC Sun Inbev Ukraine NV/SA and Anheuser-Busch Inbev NV/SA, effective as of December 2, 2009, as restated and amended as of July 20, 2010, and as supplemented pursuant to the side letter dated as of December 2, 2009.
Final Judgment ” means the Proposed Final Judgment in the matter of United States v. Anheuser-Busch InBev SA/NV & SABMiller plc filed with the United States District Court for the District of Columbia on July 20, 2016.
MGD Coolers ” means all custom-designed Miller Genuine Draft branded Coolers that have been deployed as a matter of global policy or practice to stock exclusively Miller Genuine Draft products. Schedule 9 sets forth an illustrative list of the cooler designs and models intended to constitute MGD Coolers. ABI’s good faith estimate of the number of MGD Coolers owned by Miller Parent or any of its Subsidiaries is approximately 1,000 MGD Coolers.
Miller Brand ” means any of the brands or sub-brands set forth on Schedule 3 hereto and any other sub-brands of such brands.
Miller Parent Confidential Information ” means any non-public, confidential or proprietary information related to Miller Parent and its Affiliates (other than the JV or any of its Subsidiaries or the Miller International Business), including, but not limited to, financial, technical, sales, marketing, development and personnel information, customer lists, supplier lists, trade secrets, designs, product formulations, product specifications, terms of arrangements with vendors or suppliers and all notes, analyses, compilations, summaries, extracts, studies, interpretations or other materials that contain, reflect or are based upon, in whole or in part, any such information, however recorded or preserved, whether written or oral and regardless of whether or not specifically marked as confidential.
Retained Assets ” means (i) all raw material inventory exclusively related to the Miller International Business and all other inventory (including all finished goods, work-in-progress and packaging materials) primarily related to the Miller International Business owned by the applicable Subsidiary or Subsidiaries of Miller Parent in Argentina, Australia, Botswana, Colombia, Ecuador, El Salvador, Honduras, India, Kenya, Lesotho, Malawi, Mexico, Nigeria, Panama, Peru, Romania, South Africa, South Korea, Swaziland and Vietnam and (ii) all point-of-sale materials and advertising materials primarily related to the Miller International Business owned by the applicable Subsidiary or Subsidiaries of Miller Parent in Argentina, Botswana, Colombia, El Salvador, India, Kenya, Lesotho, Malawi, Mexico, Nigeria, Panama, Peru, Romania, South Africa, South Korea and Swaziland, in each of the cases of clause (i) and (ii), to the extent such inventory,

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point-of-sale materials and advertising materials are dealt with under the applicable agreements under which ABI or any of its Affiliates will provide Buyer and its Affiliates any of the Transition Services pursuant to Section 5.10 for each such country.
Transferred Crates ” means all crates located in Panama bearing a Miller Brand owned by Miller Parent or any of its Subsidiaries, which the parties hereto estimate to consist of approximately 313,000 crates.
Transferred Coolers ” means (i) all MGD Coolers owned by Miller Parent or any of its Subsidiaries (wherever located), (ii) all Coolers owned by Miller Parent or any of its Subsidiaries bearing a Miller Brand and located in Mexico or any other country in which the Miller Branded Products were the only brands regularly sold by Miller Parent as of the Closing Date, and (iii) all Coolers owned by Miller Parent or any of its Subsidiaries bearing a Miller Brand and located in Honduras.
Transferred Cooler/Crate Purchase Price ” means an amount equal to (A) the lesser of (x) the aggregate net book value of the Transferred Coolers as of the Closing, and (y) $1,500,000 plus (B) the aggregate net book value of the Additional Transferred Crates as of the Closing.
Transferred Miller Assets ” means (i) all bottles bearing an embossed or similarly permanent Miller Brand, (ii) all moulds for bottles that bear an embossed or similarly permanent Miller Brand, (iii) all Transferred Crates and Additional Transferred Crates, (iv) all Transferred Coolers, and (v) to the extent bearing a permanent Miller Brand, all tap handles, draught fonts, draught chiller units, kegs, umbrellas, neons, tents, displays, digital signs, parasols, awnings, in-store promotional materials, print plates, labelers, art and promotional furniture. For the avoidance of doubt, any explicit reference to an entity name (including “SABMiller” or “Miller Brands UK”) on any such asset shall not, in and of itself, constitute a reference to a Miller Brand for purposes of this definition.
(b)      Transferred Assets . The definition of “Transferred Assets” in Section 1.01(a) of the Purchase Agreement is hereby amended and restated in its entirety to read as follows:
Transferred Assets ” means (1) the Transferred IP, (2) each Transferred Contract, (3) raw material inventory exclusively related to the Miller International Business, (4) all Transferred Miller Assets, (5) all royalty or equivalent rights of Miller Parent or any of its Subsidiaries in respect of oil and gas deposits at the brewery operated by the JV and its Subsidiaries located at Fort Worth, Texas (the “ Fort Worth Royalty Rights ”) and (6) all other assets (including all packaging materials, finished goods and work-in-progress, as well as all existing point-of-sale materials and advertising materials) primarily related to the Miller International Business. Notwithstanding anything to the contrary contained in this Agreement, “ Transferred Assets ” shall not include (i) any cash or cash equivalents, (ii) any accounts receivable, (iii) any employees or other personnel or benefit obligations with regard to such employees, (iv) any capital stock or other equity securities of any Person, (v) any real property or interests therein (other than the Fort Worth Royalty Rights), (vi) any Retained Assets or (vii) any plant, property and equipment

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(or any portion thereof) (as determined in accordance with IFRS applied in a manner consistent with the most recent audited consolidated balance sheet of Miller Parent as of November 11, 2015) other than the Transferred Miller Assets.
(c)      Transferred IP . The definition of “Transferred IP” in Section 1.01(a) of the Purchase Agreement is hereby amended and restated in its entirety to read as follows:
Transferred IP ” means (1) the Trademarks listed on Schedule 4 hereto, (2) all other Intellectual Property (including registered and unregistered Trademarks, product formulas, recipes and production processes) of Miller Parent and its Subsidiaries (other than the JV or any of its Subsidiaries) that is primarily related to any Miller-Branded Product and (3) all rights of Miller Parent and its Affiliates (other than the JV or any of its Subsidiaries) in or to any Intellectual Property (including registered and unregistered Trademarks, product formulas, recipes and production processes) of the JV or any of its Subsidiaries that was developed by, originally applied for or originally issued to the JV (regardless of whether such rights were assigned to Miller Parent or any of its Affiliates thereafter) for use in connection with the business of the JV or any of its Subsidiaries; provided that Transferred IP shall not include any rights of Miller Parent or such Affiliate, as applicable, in or to Intellectual Property that are expressly retained by or licensed to Miller Parent or any of its Affiliates (other than the JV or any of its Subsidiaries) pursuant to this Agreement or any of the Closing Date Agreements.
(d)      Purchase Price Adjustment . Section 2.02(b)(i) of the Purchase Agreement is hereby amended by replacing the text “sixty (60)” with the text “one hundred twenty (120)”.
(e)      Payment for Transferred Coolers . Section 2.02 of the Purchase Agreement is hereby amended to include a new Section 2.02(f), which shall read in its entirety as follows:
(f)     Payment for Transferred Coolers and Crates . Within thirty (30) days after the Closing, ABI shall provide Buyer with adequate documentation to confirm the net book value as of the Closing of the Transferred Coolers and the Additional Transferred Crates. Within five (5) Business Days after the Closing Income Statement, the Closing Statement and the TTM Miller International Business EBITDA and Adjustment Amount set forth thereon become final and binding on the parties pursuant to this Section 2.02, Buyer shall make payment of the Transferred Cooler/Crate Purchase Price, by wire transfer in immediately available funds to ABI.
(f)      Closing Date . The first sentence of Section 2.03 of the Purchase Agreement is hereby amended and restated in its entirety to read as follows:
The closing (the “ Closing ”) of the purchase and sale of the Acquired Assets hereunder shall take place on the date of the closing of the ABI Transaction by means of the steps as set out in the Announcement (the “ ABI Transaction Closing ”), unless the closing of the ABI Transaction is not on a Business Day, in which case the Closing shall occur on the Business Day immediately following the closing of the ABI Transaction (the date on which the Closing occurs, the “ Closing Date ”).

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(g)      Purchase Price Allocation . Section 2.05 of the Purchase Agreement is hereby amended by replacing the text “one hundred and twenty (120)” with the text “one hundred and eighty (180)”.
(h)      Divestiture Brands .
(i)      Section 5.09(a) of the Purchase Agreement is hereby amended and restated in its entirety to read as follows:
(a)    Prior to the Closing, Buyer and ABI shall negotiate in good faith and execute and deliver certain mutually acceptable amendments and modifications (including by terminating any conflicting predecessor provisions or agreements if necessary) to the Miller-JV Agreements, including such amendments as are necessary such that, effective as of the Closing, (A) with respect to each Licensed Brand, (i) all royalties paid by the JV on the Licensed Brands shall be eliminated for periods from and after the Closing and (ii) the terms of the license are made perpetual in the JV Territory and (B) with respect to each Imported Brand, (i) there shall be granted a perpetual, royalty-free license in the JV Territory; (ii) the term of each Miller-JV Agreement providing for the supply of any Imported Brand to the JV (each, a “Supply Contract”) may be terminated by Buyer or the JV at any time following the Closing on 120 days’ advance written notice and, if not so terminated by Buyer or the JV, shall expire on the third anniversary of the Closing Date, with Buyer having the right to extend the term of any or all of such Supply Contracts for two successive one-year periods upon not less than 60 days’ written notice prior to the scheduled expiration thereof; (iii) with respect to supply costs (defined to include variable industrial costs, fixed industrial costs, variable logistics costs first tier and fixed logistics costs first tier but excluding any general and administrative costs) under each Supply Contract, the pricing for such Imported Brand (x) for the initial three year term shall be the pricing paid by the JV under such Miller-JV Agreement as of the date of this Agreement, (y) for each extension period shall be at then-prevailing market prices (as determined at the beginning of each such extension period in accordance with Section 5.09(b)) and (z) shall reflect the terms in Section 5.09(b) and Section 5.09(c); and (iv) the counterparty to such agreement (and any successor owner of the Imported Brands) shall continue to maintain the current level of marketing support, unless otherwise agreed by the JV.
(ii)      Section 5.09 of the Purchase Agreement is hereby amended to include a new Section 5.09(e), which shall read in its entirety as follows:
(e)    Without limiting the foregoing Section 5.09(d), ABI agrees that it shall cause any third party buyer of any Imported Brand or Licensed Brand (other than Asahi in its capacity as the buyer of Peroni and Grolsch) to enter into or assume all Closing Date Agreements related to such Imported Brand or Licensed Brand in substantially the same form and substance as agreed by Buyer and ABI.
(iii)      Entity Names . The first sentence of Section 5.18 of the Purchase Agreement is hereby amended and restated in its entirety as follows:
SECTION 5.18. Entity Names . ABI agrees that it will use reasonable best efforts, and shall use reasonable best efforts to cause any third party buyer of any

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Imported Brand or Licensed Brand, to change the name of each of its Affiliates with the word “Miller” or “SABMiller” in its name to a new name that does not contain such word within one year following the Closing Date, and in any event shall cause such change to occur within two years following the Closing Date.
(i)      Termination of Miller-JV Agreements . Section 5.09 of the Purchase Agreement is hereby amended to include a new Section 5.09(f), which shall read in its entirety as follows:
(f)    ABI and Buyer shall, and shall cause their respective Affiliates to, take all actions necessary to either assign to Buyer or one of its Affiliates or terminate (at Buyer’s discretion) each Miller-JV Agreement set forth on Schedule 8-A hereto (each, a “ Terminated Miller-JV Agreements ”) such that, effective as of the Closing, neither Miller Parent nor any of its Affiliates retain any rights or have any obligations thereunder except as expressly provided on Schedule 8-A hereto. In the event that either ABI or Buyer identifies a Miller-JV Agreement after the Closing Date that is not either (x) a Terminated Miller-JV Agreement or (y) a Miller-JV Agreement that was amended or modified as of the Closing Date pursuant to this Section 5.09 or Section 5.10 (including the amended or modified Miller-JV Agreements set forth on Schedule 8-B hereto, which will be effective as of the Closing Date), (i) ABI or Buyer, as applicable, shall provide prompt written notice of such Miller-JV Agreement to the other party hereto, which notice shall include a copy of such Miller-JV Agreement and (ii) ABI and Buyer shall, and shall cause their respective Affiliates to, take all actions necessary to either assign to Buyer or one of its Affiliates or terminate (at Buyer’s discretion) such Miller-JV Agreement as promptly as reasonably practicable and in a manner that minimizes to the extent practicable the disruption to the businesses and operations of ABI, Buyer and their respective Affiliates; provided that, for the avoidance of doubt and notwithstanding anything to the contrary contained in this Section 5.09(f) , (1) the parties hereto agree and acknowledge that Buyer shall not assume or be deemed to have assumed any Liability in respect of any Terminated Miller-JV Agreement to the extent arising out of any transaction, status, event, condition, occurrence or breach by Miller Parent or one of its Affiliates occurring at or prior to the Closing; (2) any payment obligations under any Terminated Miller-JV Agreement that remain outstanding as of the Closing shall survive the Closing until paid in full in accordance with the applicable provisions of the Terminated Miller-JV Agreement; and (3) any rights or obligations under such Miller-JV Agreements identified after the Closing Date that are substantially equivalent to the rights or obligations that survive termination or assignment in the Terminated Miller-JV Agreements pursuant to Schedule 8-A hereto shall survive termination or assignment of such Miller-JV Agreement unless otherwise agreed by ABI and Buyer.
(j)      License of JV Intellectual Property . Section 5.16 of the Purchase Agreement is hereby amended to re-number Section 5.16 of the Purchase Agreement as Section 5.16(a) and to include new Sections 5.16(b) and 5.16(c), which shall read in its entirety as follows:
(b)    Buyer and its Affiliates irrevocably covenant not to, and to require their respective successors and assigns not to, file or initiate any suit, action or proceeding against, or to seek any royalty or other similar payment from, ABI or any of its Affiliates (including Miller Parent and any of its Affiliates) (each, a

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Protected Party ”) for the misappropriation, infringement or use of any Intellectual Property (including product formulas, recipes and production processes but excluding any registered or unregistered trademarks) developed or acquired by or originally issued to the JV or any of its Subsidiaries and as to which the JV or any of its Subsidiaries had the right to grant this covenant prior to or as of November 11, 2015, or will have the right to grant this covenant prior to or as of the Closing Date, either (A) based upon the activities of a Protected Party in connection with the brewing, distribution or sale of any Malt Beverage for ultimate distribution and sale outside of the JV Territory, in each case only if Miller Parent or any of its Affiliates (other than the JV or any of its Subsidiaries) prior to or as of November 11, 2015 was already engaging in such activity or had demonstrable plans to engage in such activity or (B) where such Intellectual Property is information retained in the unaided memories of employees of Miller Parent and any of its Affiliates who had lawful access to such information prior to the Closing Date (subject to any ongoing obligation of such employee to avoid disclosure of any Buyer Confidential Information); provided that clause (A) of the foregoing covenant shall be subject to the following limitations and restrictions: (i) the foregoing covenant shall only apply to the activities of a Protected Party that are consistent with past historical practices of Miller Parent and such Affiliates in the ordinary course of business that were permitted (or, in the case of planned activities, that would have been permitted) under the terms of applicable Miller-JV Agreements; (ii) such Malt Beverage shall be limited to the recipe, ingredients, and production processes as brewed or demonstrably planned to be brewed by Miller Parent or such applicable Affiliate prior to November 11, 2015 (but including modifications thereof as required by Governmental Authorities, ingredient supply constraints or similar requirements); (iii) the foregoing covenant does not apply to any Malt Beverage or related brewing, distribution or sale activities of a Protected Party to the extent that such Malt Beverage is actually distributed or sold within the JV Territory by a Protected Party or any of its or their respective distributors; (iv) the foregoing covenant does not apply to any use of Intellectual Property in connection with a Malt Beverage if such Intellectual Property is expressly licensed or unlicensed in connection with such Malt Beverage in any Closing Date Agreement; (v) the terms and conditions of each of the Closing Date Agreements shall have priority over any contrary or conflicting terms and conditions in the foregoing covenant with respect to the Malt Beverages and Intellectual Property that is the subject of such Closing Date Agreement; and (vi) the foregoing covenant does not apply to any Intellectual Property that is primarily related to any Miller-Branded Product. Upon prior written notice to Buyer (it being understood, for the avoidance of doubt, that no consent of Buyer shall be required), ABI shall have the right to transfer (without retaining any benefit for itself or its Affiliates) the foregoing covenant with respect to a Malt Beverage in its entirety to a third party that acquires the brewing, sale or distribution rights for any such Malt Beverage (it being understood and agreed that ABI shall be permitted to transfer its rights under the foregoing covenant only once within a particular country, to one third party entity, for each group of related Malt Beverage products within such country even if such third party does not acquire all brewing, sale and distribution rights therefor). Buyer and its Affiliates further agree, upon the reasonable request of ABI identifying a particular Malt Beverage covered by the foregoing covenant (after disregarding the November 11, 2015 date requirement) and the applicable Intellectual Property of the JV existing as of the Closing Date

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and used in connection with such Malt Beverage, to negotiate in good faith with ABI to extend the foregoing covenant to ABI and its Affiliates (including Miller Parent and its Affiliates) for any such Malt Beverage that would include reasonable evolutionary changes to such Malt Beverage for ultimate distribution and sale outside of the JV Territory. For the purposes of this Section 5.16(b) and Section 5.16(c), the term “ Malt Beverages ” shall mean malt or sorghum beverage(s) of any type, including beer, ale, stout and lager, where the malt beverage is produced by a process of fermentation or yeast contact (but not including distilled beverages such as whisky).
(c)    In the event that either ABI or Buyer identifies any registered or unregistered trademark (i) that has been developed or acquired by or originally issued to the JV or any of its Subsidiaries, (ii) as to which the JV or any of its Subsidiaries has ownership or exclusive license rights in existence (x) as of the Closing Date and (y) at the time of written notice pursuant to clause (A) below, and (iii) that is being used as a trademark by a Protected Party in the activities of such Protected Party in connection with the brewing, distribution or sale of any Malt Beverage for ultimate distribution and sale outside of the JV Territory, (A) ABI or Buyer, as applicable, shall provide prompt written notice of such use to the other party hereto, (B) ABI shall, and shall cause its Affiliates to, take all actions necessary to discontinue such use as promptly as reasonably practicable and in a manner that reasonably minimizes the disruption to the business and operations of ABI and its Affiliates, and (C) during any time period that ABI or its Affiliates continues such use, ABI for itself and on behalf of its Affiliates shall only use such trademark consistent with historical practices and shall brew, sell and distribute any products or services associated with such trademark with the same level of quality as historically associated with such products and services provided under such trademark, Buyer and its Affiliates covenant not to, and to require their respective successors and assigns not to, file or initiate any suit, action or proceeding against, or to seek any royalty or other similar payment from, such Protected Party for such use provided that ABI complies with the requirements of the foregoing clauses (B) and (C); provided that Buyer’s and its Affiliates’ covenant not to sue in this Section 5.16(c) shall only apply to activities of a Protected Party that occur within four (4) years after the Closing Date and shall not apply to: (x) any registered or unregistered trademarks that are expressly licensed for use, or expressly unlicensed, to Miller Parent or any of its Affiliates in any Closing Date Agreement; and (y) any registered or unregistered trademarks that are primarily related to any Miller-Branded Product. Upon prior written notice to Buyer (it being understood, for the avoidance of doubt, that no consent of Buyer shall be required), ABI shall have the right to transfer (without retaining any benefit for itself or its Affiliates) its rights and obligations under this Section 5.16(c) with respect to a Malt Beverage to any third party that acquires the brewing, sale or distribution rights for any such Malt Beverage (it being understood and agreed that ABI shall be permitted to transfer its rights under this Section 5.16(c) only once within a particular country, to one third party entity, for each group of related Malt Beverage products within such country even if such third party does not acquire all brewing, sale and distribution rights therefor).
(k)      Elimination of Certain Commercial Restrictions . Section 5.20 of the Purchase Agreement is hereby amended and restated in its entirety as follows:

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SECTION 5.20. Elimination of Certain Commercial Restrictions .
(a)    At the Closing, ABI and Buyer shall cause their respective Affiliates to take all action necessary (including the execution and delivery of mutually acceptable amendments, waivers and/or other instruments) such that all contractual restrictions on the ability of Buyer and its Subsidiaries to import, manufacture, distribute, license, market and/or sell any (i) Imported Brands or Licensed Brands in the JV Territory or (ii) Miller-Branded Products in any territory or jurisdiction to the extent such restrictions are contained in any of the Existing Agreements shall have been terminated as of the Closing. For the avoidance of doubt, this Section 5.20(a) and the termination of contractual restrictions contemplated hereby shall not limit or otherwise affect (A) any contractual restrictions contained in (x) this Agreement, (y) any Miller-JV Agreement or (z) any agreement entered into as contemplated by Section 5.10 or (B) the application of such contractual restrictions to any products or categories of products other than the Imported Brands, the Licensed Brands or the Miller-Branded Products.
(b)    At the Closing, ABI and Buyer shall cause their respective Affiliates to take all action necessary (including the execution and delivery of mutually acceptable amendments, waivers and/or other instruments) such that all contractual restrictions contained in clause 8.9 of the Existing CEE Agreement, clause 11.3 of the Existing Russia Agreement or clause 11.3 of the Existing Ukraine Agreement on the ability of Buyer and its Subsidiaries to import, manufacture, distribute, license, market and/or sell any other brands, which from time to time, are owned, distributed or licensed by, the Buyer or its Subsidiaries shall have been terminated as of the Closing. For the avoidance of doubt, this Section 5.20(b) and the termination of contractual restrictions contemplated hereby shall not limit or otherwise affect (A) any contractual restrictions contained in (x) this Agreement, (y) any Miller-JV Agreement or (z) any agreement entered into as contemplated by Section 5.10 , (B) the exclusive nature of the license of the Staropramen Rights and the Staropramen Trademarks (each, as defined in the Existing Ukraine Agreement and the Existing Russia Agreement, as applicable) under the Existing Ukraine Agreement and the Existing Russia Agreement or (C) the impact of the volume of Other Competing International Premium Beer (as defined in the Existing CEE Agreement) on the right to extend the term of the license pursuant to clause 20 of the Existing CEE Agreement. In the event that Buyer or one of its Affiliates commences the importation, manufacture, distribution, licensing, marketing or sale of any Czech lager beer competing with the Products (as defined in the Existing Ukraine Agreement or the Existing Russia Agreement, as applicable) (“ Czech Beer ”) in the Territory (as defined in the Existing Ukraine Agreement or the Existing Russia Agreement, as applicable), any minimum sales volume, market share or similar requirements contained in the Existing Ukraine Agreement or the Existing Russia Agreement (as applicable) shall automatically be released effective from and after the introduction of such Czech Beer. Buyer and ABI agree (and shall cause their respective Affiliates to acknowledge and agree) that Buyer shall not, and shall cause its Affiliates not to, exercise any right that Buyer or its Affiliates may have under Section 21.3.2(e) of the Existing Russia Agreement to terminate such agreement until the first anniversary of the Closing (it being understood that (i) such deferral shall not be deemed to be, and shall not be asserted by either party hereto

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to be, an admission or concession by either party hereto that the ABI Transaction Closing or the conduct of business by ABI and its Affiliates from and after such time does or does not (or would or would not) give rise to a termination right by Buyer or one of its Affiliates pursuant to Section 21.3.2(e) of the Existing Russia Agreement and (ii) the determination of whether Buyer or its Affiliates has a right to terminate the Existing Russia Agreement pursuant to Section 21.3.2(e) thereof from and after the first anniversary of the date hereof shall be made solely based upon the facts, conditions and circumstances existing at such time after the first anniversary of the date hereof and not retroactively based upon any facts, events, conditions or circumstances that occurred or existed during such one year deferral period).
(c)    At the Closing, ABI and Buyer shall cause their respective Affiliates to take all action necessary (including the execution and delivery of mutually acceptable amendments, waivers and/or other instruments) such that all contractual restrictions contained in clause 11.3 of the Existing CEE Agreement on the ability of ABI and its Subsidiaries (including Miller Parent and its Subsidiaries) to import, manufacture, distribute, license, market and/or sell any other brands, which from time to time, are owned, distributed or licensed by, ABI or its Subsidiaries (including Miller Parent and its Subsidiaries) shall have been terminated as of the Closing. For the avoidance of doubt, this Section 5.20(c) and the termination of contractual restrictions contemplated hereby shall not limit or otherwise affect any contractual restrictions contained in (x) this Agreement, (y) any Miller-JV Agreement or (z) any agreement entered into as contemplated by Section 5.10 . In the event that ABI or one of its Affiliates commences the importation, manufacture, distribution, licensing, marketing or sale of a beer or other beverage in a Territory (as defined in the Existing CEE Agreement) that competes with a product licensed pursuant to the Existing CEE Agreement in such Territory, any minimum sales volume, market share or similar requirements for such product in such Territory contained in the Existing CEE Agreement shall automatically be released effective from and after the introduction of such competing beer or beverage.
(d)    At the Closing, Buyer shall cause its Affiliates to take all action necessary (including the execution and delivery of mutually acceptable amendments, waivers and/or other instruments) to (x) waive any termination rights contained in the Existing Agreements (other than the Existing Russia Agreement) that may be exercisable by Buyer or one of its Affiliates as a result of or otherwise arising out of (i) the ABI Transaction Closing or (ii) the continued importation, manufacture, distribution, licensing, marketing or sale of a beer or other beverage by ABI or its Subsidiaries (including Miller Parent and its Subsidiaries) that is imported, manufactured, distributed, licensed, marketed or sold in the relevant territory for such Existing Agreement as of the ABI Transaction Closing and (y) waive any claim against ABI or its Subsidiaries (including Miller Parent and its Subsidiaries) under the Existing Agreements to the extent such claim arises solely out of (i) the ABI Transaction Closing or (ii) the continued importation, manufacture, distribution, licensing, marketing or sale of a beer or other beverage by ABI or its Subsidiaries (including Miller Parent and its Subsidiaries) that is imported, manufactured, distributed, licensed, marketed or sold in the relevant territory for such Existing Agreement as of the ABI Transaction Closing (it being understood

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that the waivers set forth in this Section 5.20(d) shall not apply to any act by ABI or any of its Subsidiaries (including Miller Parent and its Subsidiaries) other than acts described in (i) and (ii) of this clause (y) that would otherwise constitute a breach of such Existing Agreement); provided that in the event that ABI and its Subsidiaries divest or otherwise sell the rights to any such beer or other beverage after the ABI Transaction Closing and subsequently re-acquire such rights, the waivers set forth in this Section 5.20(d) shall not apply to the importation, manufacture, distribution, licensing, marketing or sale of any such re-acquired beer or other beverage from and after the date of such re-acquisition.
(l)      Confidential Information . Article V of the Purchase Agreement is hereby amended to include a new Section 5.23, which shall read in its entirety as follows:
SECTION 5.23. Confidential Information .
(a)    As promptly as reasonably practicable following the Closing, ABI shall use its commercially reasonable efforts to deliver to Buyer or destroy all Buyer Confidential Information in the possession of ABI or its Affiliates as of the Closing Date, in each case without keeping any copies, in whole or part thereof in any medium whatsoever; provided , however , that ABI and its Affiliates (i) shall be entitled to retain the minimum number of copies of the Buyer Confidential Information to the extent necessary to comply with any applicable Law or any rule of any securities exchange to which ABI or any of its Affiliates is subject, which shall be used or disclosed solely for such purposes, (ii) shall not be required to destroy or delete Buyer Confidential Information or computer models, electronic files or other electronic material prepared by or on behalf of ABI or its Affiliates that incorporate Buyer Confidential Information to the extent backed up or archived in the ordinary course of business, which Buyer Confidential Information shall remain subject to the terms of the Confidentiality Agreement in accordance with Section 5.23(b) and (iii) shall be entitled to retain copies of the Buyer Confidential Information to the extent necessary for ABI or any of its Affiliates to exercise their respective rights or perform their respective obligations under the Miller-JV Agreements that are amended, modified or restated pursuant to Section 5.09 or any agreements under which ABI or any of its Affiliates will provide Buyer and its Affiliates any of the Transition Services pursuant to Section 5.10 (such agreements, the “ Closing Date Agreements ”) or this Agreement, which Buyer Confidential Information shall be treated by ABI and its Affiliates as confidential pursuant to the terms of such Closing Date Agreements or this Agreement, as the case may be. ABI shall cause one of its authorized officers to deliver to Buyer a certificate stating that ABI has complied with all of the requirements of this Section 5.23(a).
(b)    Following the Closing, all Buyer Confidential Information in the possession of ABI or its Affiliates shall be considered “Evaluation Material” under and as defined in the confidentiality agreement dated as of October 18, 2015 between ABI and Buyer (the “ Confidentiality Agreement ”), and the parties shall, and shall cause their respective Affiliates to, treat all such Buyer Confidential Information as Evaluation Material in accordance with the requirements of the Confidentiality Agreement.

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(c)    As promptly as reasonably practicable following the Closing, Buyer shall use its commercially reasonable efforts to deliver to ABI or destroy all Miller Parent Confidential Information in the possession of the JV or its Subsidiaries as of the Closing Date, in each case without keeping any copies, in whole or part thereof in any medium whatsoever; provided , however , that the JV and its Subsidiaries (i) shall be entitled to retain the minimum number of copies of the Miller Parent Confidential Information to the extent necessary to comply with any applicable Law or any rule of any securities exchange to which the JV or any of its Subsidiaries is subject, which shall be used solely for such purposes, (ii) shall not be required to destroy or delete Miller Parent Confidential Information or computer models, electronic files or other electronic material prepared by or on behalf of the JV or its Subsidiaries that incorporate Miller Parent Confidential Information to the extent backed up or archived in the ordinary course of business, which Miller Parent Confidential Information shall be treated by Buyer and its Affiliates as confidential in accordance with Section 5.23(d) and (iii) shall be entitled to retain copies of the Miller Parent Confidential Information to the extent necessary to exercise their respective rights or perform their respective obligations under any Closing Date Agreements or this Agreement, which shall be treated by Buyer and its Affiliates as confidential pursuant to the terms of such Closing Date Agreements. Buyer shall cause one of its authorized officers to deliver to ABI a certificate stating that Buyer has complied with all of the requirements of this Section 5.23(c).
(d)    Following the Closing, all Miller Parent Confidential Information in the possession of the JV or its Subsidiaries shall be treated by Buyer and its Affiliates as confidential on the same terms on which ABI is required to treat “Evaluation Material” as confidential pursuant to the requirements of the Confidentiality Agreement.
(e)    ABI and Buyer acknowledge and agree that certain of the information required to be disclosed by ABI, Buyer or any of their respective Affiliates pursuant to the Closing Date Agreements or any other agreements between ABI or any of its Affiliates, on the one hand, and Buyer or any of its Affiliates, on the other hand, in effect as of the Closing Date (including the Existing Agreements) may be competitively sensitive. To the extent not already provided for in any such agreement, ABI and Buyer shall cause their respective Affiliates to take all action necessary (including the execution and delivery of mutually acceptable amendments, waivers and/or other instruments) to establish, implement and maintain procedures and take such other steps as are necessary to limit the disclosure of such competitively sensitive information to their respective employees and the employees of their respective Affiliates who are engaged in the performance of the obligations under any such agreement or who otherwise need to know such information in connection with the performance of the obligations under any such agreement.
(f)    From and after the date of this Amendment, Buyer shall have the right to review and approve in advance (such approval not to be unreasonably withheld, conditioned or delayed) any document that ABI proposes to submit from time to time to the DOJ (whether as an initial, amended or modified submission or otherwise) concerning the procedures implemented by ABI to effect compliance

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with the provisions relating to Buyer Confidential Information in the final judgment (or any amendment or modification thereof) issued by the United States District Court for the District of Columbia in connection with the complaint brought by the DOJ against ABI and Miller Parent in connection with the ABI Transaction.
(m)      Transferred Assets Schedule . Article V of the Purchase Agreement is hereby amended to include a new Section 5.24, which shall read in its entirety as follows:
SECTION 5.24. Transferred Assets Schedule . ABI shall use its commercially reasonable efforts to, no later than five (5) days prior to the Closing Date, deliver to Buyer a list (derived from the books and records of Miller Parent and its Subsidiaries), setting forth Miller Parent’s good faith estimate of the numbers and locations of the types of the Transferred Assets that will be transferred to Buyer on the Closing Date (such inventory as updated in accordance with the immediately following sentence, the “ Transferred Assets Inventory ”). Following the delivery of the Transferred Assets Inventory to Buyer and prior to the Closing, ABI shall consider in good faith any comments, questions or requests from Buyer in respect of the Transferred Assets Inventory and shall, except to the extent prohibited by the UK Code, use its commercially reasonable efforts to cause Miller Parent and its Subsidiaries to participate, as appropriate, in any such discussions and cooperate with ABI and Buyer in updating and supplementing the Transferred Assets Inventory in order to reflect the Transferred Assets that will be transferred to Buyer on the Closing Date, and within thirty (30) days after the Closing Date, ABI shall deliver to Buyer an updated Transferred Assets Inventory as of the Closing reflecting the actual numbers and locations of the types of the Transferred Assets that were transferred to Buyer on the Closing Date; provided that, without limiting any rights or obligations of any party under this Agreement or any Closing Date Agreement, (a) the Transferred Assets Inventory is provided to Buyer for informational purposes only and none of ABI, Miller Parent or any other Person makes any express or implied representation or warranty as to the accuracy or completeness of the Transferred Assets Inventory and (b) the parties hereto acknowledge and agree that any inaccuracies in the Transferred Assets Inventory or any failure by ABI to deliver the Transferred Assets Inventory shall not be deemed to cause the failure of any condition to the Closing to be satisfied or otherwise prevent the consummation of the Closing in any manner.
(n)      Additional Agreement . Article V of the Purchase Agreement is hereby amended to include a new Section 5.25, which shall read in its entirety as follows:
SECTION 5.25. Additional Agreement . Buyer agrees that it will not cite the ABI Transaction or the divestiture required by Section IV or VI of the Final Judgment as a basis for modifying, renegotiating, or terminating any contract with any Distributor (as defined in the Final Judgment) of Buyer.
(o)      Reimbursement of Labeling-Related Expenses . Section 7.03 of the Purchase Agreement is hereby amended to re-number Section 7.03 of the Purchase Agreement as Section 7.03(a) and to include a new Section 7.03(b), which shall read in their entirety as follows:

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(b)    As promptly as practicable following the Closing Date (but in any event no later than the third Business Day following the Closing Date), Buyer shall reimburse ABI, by wire transfer of immediately available funds, for all reasonable and documented out-of-pocket fees, costs and expenses (including fees and disbursements of counsel) incurred prior to the Closing Date by ABI, Miller Parent or any of their respective Affiliates in each case solely to the extent (i) such expenses were incurred in connection with the coordination and implementation of the labeling, packaging and regulatory registrations and clearances for the Miller-Branded Products, in each case, at Buyer’s request; (ii) Buyer or its Affiliates would have been responsible for such expenses pursuant to the Closing Date Agreements if such expenses were instead incurred on or after the Closing Date; and (iii) ABI’s good faith estimate of such costs and expenses is approved in advance by Buyer (it being understood and agreed that such estimate shall not be binding and shall not in and of itself limit Buyer’s obligations under this Section 7.03(b)).
(p)      Schedule of Additional Imported Brands . Schedule 1-B to the Purchase Agreement is hereby amended by (i) deleting the word “Tocayo” and (ii) adding the parenthetical “(other than Tocayo)” immediately following the phrase “La Constancia S.A. de C.V. products” therein.
(q)      Schedule of Existing Agreements . Schedule 7 to the Purchase Agreement is hereby amended and restated and replaced by the schedule attached as Exhibit A hereto.
(r)      Schedule of Miller-JV Agreements . The Purchase Agreement is hereby amended to add the schedule attached as Exhibit B hereto as a new Schedule 8 to the Purchase Agreement.
(s)      Illustrative Schedule of MGD Coolers . The Purchase Agreement is hereby amended to add the schedule attached as Exhibit C hereto as a new Schedule 9 to the Purchase Agreement.
2.      Interpretation of Certain Terms; No Further Amendment or Waiver . The words “this Agreement,” “herein,” “hereof” and other like words in the Purchase Agreement from and after the effective time of this Amendment shall mean and include the Purchase Agreement as amended hereby. Except as expressly set forth herein, this Amendment shall not by implication or otherwise (x) limit, impair, constitute a waiver of or otherwise affect the rights and remedies of any party under the Purchase Agreement or (y) alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Purchase Agreement, all of which shall continue in full force and effect.
3.      Governing Law . This Amendment shall be deemed to be made in accordance with, and in all respects shall be interpreted, construed and governed by and in accordance with, the law of the State of Delaware without regard to the conflicts of law principles thereof to the extent that such principles would direct a matter to another jurisdiction.
4.      Counterparts; Delivery by Electronic Transmission . This Amendment may be executed in one or more counterparts (including by electronic transmission in portable document format (pdf)), each of which shall be deemed an original, but all of which together shall constitute a single instrument. The reproduction of signatures by means of a facsimile device or electronic transmission in portable document format (pdf) shall be treated as though such reproductions are executed originals and, upon request, each party shall provide the other party with a copy of this Amendment bearing original

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signatures within five business days following transmittal by facsimile device or electronic transmission in portable document format (pdf).
[ Remainder of Page Intentionally Left Blank ]


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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their respective officers as of the day and year first above written.
ANHEUSER-BUSCH INBEV SA/NV
By:
/s/ Benoit Loore
 
Name: Benoit Loore
 
Title: Authorized Signatory
 
 
 
 
 
 
By:
/s/ Jan Vandermeersch
 
Name: Jan Vandermeersch
 
Title: Authorized Signatory
 
 


MOLSON COORS BREWING COMPANY
By:
/s/ E. Lee Reichert
 
Name: E. Lee Reichert
 
Title: Deputy General Counsel and Secretary





[Signature Page to Amendment No. 2 to Purchase Agreement]
MCBCCOORSOFFERLETTERIMAGE1.JPG






September 30, 2016

Mr. Peter H. Coors

Dear Pete:

It is with great pleasure that I offer you the position of  Chief Customer Relations Officer of Molson Coors Brewing Company (“Molson Coors”), to be based in Denver, Colorado effective upon the closing of the acquisition of MillerCoors LLC by Molson Coors (the “Effective Date”). You will receive annual performance reviews conducted by the independent member of the Nominating Committee on behalf of the of the Molson Coors Board of Directors (the “Board”), and you will continue to be eligible for nomination and election as a member of the Board.

Compensation:  Your monthly base compensation for the first twelve months following the Effective Date, will be $62,500, which represents an annualized amount of $750,000. Your monthly base compensation for the second twelve months following the Effective Date will be $54,167, which represents an annualized amount of $650,000. Your monthly base compensation for the third twelve months following the Effective Date will be $45,833 which represents an annualized amount of $550,000.

You will not be eligible to participate in the annual Molson Coors Incentive Plan (“MCIP”) available to other senior executives nor will you be expected to receive annual equity grants under the Amended and Restated Molson Coors Incentive Compensation Plan (“LTIP”) Plan relating to your service as Chief Customer Relations Officer. However, you will remain eligible for equity incentive awards relating to your service on the Board. In addition, for your prior service in 2016 as Chairman, MillerCoors, you will remain eligible to receive a prorated 2016 MCIP award based upon MillerCoors’s actual 2016 performance, as determined by the Compensation and Human Resources Committee of the Board.

Special RSU Grant:  Upon the Effective Date and subject to approval by the Board, Molson Coors will award you 12,000 Molson Coors cash-settled restricted stock units (“RSUs”), which will vest in equal installments on each of December 31, 2017, 2018 and 2019. Upon vesting, the RSUs will be settled in cash, net of tax, based on the value of Molson Coors Class B common stock on the date of vesting.

The vesting of the above RSUs will require your continued employment with Molson Coors through the applicable vesting date.

Severance: If Molson Coors involuntarily terminates your employment (other than for “Cause,” as such term is defined in the LTIP), Molson Coors will pay you a lump sum cash payment in an amount equal to the lessor of (i) your then current base salary through twelve (12) months from the date of termination, or (ii), if your termination occurs during the third twelve month period following the Effective Date, your then-current base salary through the conclusion of the third twelve month period. The RSUs granted to you in connection with this letter, would also accelerate and vest on a prorated basis through the end of the severance payment period. No

Molson Coors Brewing Company
1801 California Street Suite 4600 • Denver, Colorado • 80202 • USA
Tel. (303) 927-2416

MOLSON is a registered trademark of Molson Canada 2005, used under license. COORS is a registered trademark of Coors Brewing Company, used under license.

MCBCCOORSOFFERLETTERIMAGE1.JPG     



severance will be due if Molson Coors does not renew this letter agreement at its conclusion, and such renewal, if any, will occur at the sole discretion of Molson Coors.

Condition Precedent to Receipt of Payments or Benefits: You will not be eligible to receive any severance payments or benefits referenced above unless (i) you timely execute and return a general release of all claims arising out of your employment with, and termination of employment from, Molson Coors in substantially the form attached hereto as Exhibit A (adjusted as necessary to conform to then existing legal requirements, as determined by Molson Coors) (the “General Release”), and (ii) the revocation period specified in such General Release expires no later than sixty (60) days after the date on which your employment terminates (or prior to the end of such shorter period specified in such General Release) and without you exercising your right of revocation as set forth in the General Release. The payments and benefits under this letter that are conditioned upon such General Release being in effect will be paid on Molson Coors’ next regular U.S. payroll date following the effective date of the General Release or if the number of days for execution of the General Release and any revocation period thereunder spans two calendar years, Molson Coors’ next regular U.S. payroll date following the later of the effective date of the General Release or the first business day of the second calendar year.

Benefits:  You will be eligible to participate in the Molson Coors benefit plan, the details of which will be shared with you shortly. The benefit plan includes comprehensive coverage including medical, dental, short and long term disability protection, life insurance and accident insurance effective on your date of hire. You will also be eligible to participate in the 401(k) plan immediately upon your date of hire.

Vacation:  You will be eligible to receive 200 hours of paid vacation per calendar year, which will be prorated for 2016.

Transportation Benefit:  Molson Coors is currently offering a free RTD EcoPass for your public transportation needs and pre-tax parking funds to help off-set some of the costs you may incur. Your position entitles you to $100 of pre-tax parking funds per month.

Executive Financial Planning:  You are eligible to receive a $10,000 per year stipend to cover financial and tax planning. This amount is paid to you in equal monthly installments.

Executive Life Insurance:  You will be provided with life insurance in an amount equal to six times your base pay. This is in addition to the life insurance in an amount equal to two times your base pay that you may elect under our annual enrollment as part of our employee benefits program.

Confidential Information; Confidentiality and Noncompete Agreement: You shall hold in a fiduciary capacity for the benefit of Molson Coors all material proprietary information, knowledge or data relating to Molson Coors or any of its affiliated companies, and their respective businesses, which was obtained by you during your employment by Molson Coors or any of its affiliated companies and which is not or does not become public knowledge (other than by acts by you or your representatives in violation of this letter). After termination of your employment with Molson Coors, you shall not, without the prior written consent of Molson

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Coors or as may otherwise be required by law or legal process, communicate or divulge any such information, knowledge or data to anyone other than Molson Coors and those designated by it. To the extent there is any conflict between the provisions of this paragraph and the Confidentiality and Noncompete Agreement (as described below), the provisions of the Confidentiality and Noncompete Agreement will control.

You shall enter into the Confidentiality and Noncompete Agreement with the Company, substantially in the form attached hereto as Exhibit B .

Entire Understanding/Termination of Employment Agreement: Molson Coors and you acknowledge that except as otherwise specified herein this letter constitutes the entire understanding between Molson Coors and you with respect to your continued employment upon and after the Effective Date, and supersedes and replaces any other prior agreement or other understanding, specifically the Employment Agreement, as amended, dated January 1, 2009, between Molson Coors and you.

Governing Law and Arbitration: This letter shall be governed by and construed in accordance with the laws of the State of Colorado, without reference to principles of conflict of laws. Any dispute or controversy arising under or in connection with this letter, except any action seeking injunctive relief to enforce the Confidentiality and Noncompete Agreement, shall be settled exclusively by arbitration in Denver, Colorado in accordance with the rules for the resolution of employment disputes of the American Arbitration Association then in effect. Judgment may be entered on the arbitrator’s award in any court of competent jurisdiction. The arbitrator shall have the discretion to award costs (including the arbitrator’s fee and fees and disbursements of counsel) to the prevailing party as part of his award.

Section 409A Compliance: This letter is intended to comply with, or otherwise be exempt from, Code Section 409A. Molson Coors shall undertake to administer, interpret, and construe this letter in a manner that does not result in the imposition to you of additional taxes or interest under Code Section 409A.

The preceding provision, however, shall not be construed as a guarantee by Molson Coors of any particular tax effect to you under this letter. Molson Coors shall not be liable to you for any payment made under this letter that is determined to result in an additional tax, penalty, or interest under Code Section 409A, nor for reporting in good faith any payment made under this letter as an amount includible in gross income under Code Section 409A. Nothing herein shall require Molson Coors to provide you with any gross-up for any tax, interest or penalty incurred by you under Section 409A.

Any payment required to be made under this letter by the later of Molson Coors’ next regular U.S. payroll date or the first business day of the second calendar year following the termination of your employment, shall be deemed timely made if it is made within the time period permitted under Treasury Regulation Section 1.409A-3(d).

With respect to any reimbursement of your expenses (including taxes) or the provision of in-kind benefits, as specified under this letter, such reimbursement of expenses and provision of in-kind

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benefits shall be subject to the following conditions: (A) the expenses eligible for reimbursement, or in-kind benefits to be provided, in one taxable year shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year; (B) the reimbursement of an eligible expense shall be made no later than the end of the year after the year in which such expense was incurred; and (C) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit.

If a payment obligation under this letter arises on account of your separation from service while you are a “specified employee” (as defined under Section 409A of the Code and determined in good faith by the Compensation and Human Resources Committee of Molson Coors), any payment of “deferred compensation” (as defined under Treasury Regulation Section 1.409A-1(b)(1), after giving effect to the exemptions in Treasury Regulation Sections 1.409A-1(b)(3) through (b)(12)) that is scheduled to be paid within six (6) months after such separation from service shall be accumulated without interest and shall be paid within fifteen (15) days after the end of the six-month period beginning on the date of such separation from service or, if earlier, within fifteen (15) days after the appointment of the personal representative or executor of your estate following your death.

Each payment made under this letter shall be treated as a separate and distinct payment and the full right to a series of installment payments under this letter shall be treated as a right to a series of separate and distinct payments.

We hope for a mutually rewarding relationship. You should know, however, that your employment is “at will”. That means you may terminate your employment at any time, with or without cause or notice, and we reserve the same right. This “at will” relationship may not be modified except in writing signed by the CEO of Molson Coors Brewing Company. Finally, Molson Coors Brewing Company reserves the right to modify its policies and the accompanying terms of your employment as it deems appropriate.

We look forward to you assuming your new role at Molson Coors Brewing Company.

Sincerely,

/s/ Mark Hunter
Mark Hunter
President and Chief Executive Officer

cc: Sam Walker
 
Please acknowledge your acceptance of this letter by signing below and returning this letter along with the completed new hire forms (sent to your e-mail as file attachments).


Offer Accepted:          /s/ Peter H. Coors                    
Peter H. Coors        

Date: September 30, 2016

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EXHIBIT A
FORM OF RELEASE
GENERAL RELEASE
        1.     For valuable consideration, the adequacy of which is hereby acknowledged, the undersigned (“Executive”), for himself, his spouse, heirs, administrators, children, representatives, executors, successors, assigns, and all other persons claiming through Executive, if any (collectively, “Releasers”), knowingly and voluntarily releases and forever discharges Molson Coors Brewing Company, its affiliates, subsidiaries, divisions, successors and assigns and the current, future and former employees, officers, directors, trustees and agents thereof (collectively referred to throughout this General Release as “Company”) from any and all claims, causes of action, demands, fees and liabilities of any kind whatsoever, whether known and unknown, against Company, Executive has, has ever had or may have as of the date of execution of this General Release, including, but not limited to, any alleged violation of:
The National Labor Relations Act, as amended;
Title VII of the Civil Rights Act of 1964, as amended;
The Civil Rights Act of 1991;
Sections 1981 through 1988 of Title 42 of the United States Code, as amended;
The Employee Retirement Income Security Act of 1974, as amended;
The Immigration Reform and Control Act, as amended;
The Americans with Disabilities Act of 1990, as amended;
The Age Discrimination in Employment Act of 1967, as amended;
The Older Workers Benefit Protection Act of 1990;
The Worker Adjustment and Retraining Notification Act, as amended;
The Occupational Safety and Health Act, as amended;
The Family and Medical Leave Act of 1993;
Any other federal, state or local civil or human rights law or any other local, state or federal law, regulation or ordinance; or
Any public policy, contract, tort, or common law.
        Notwithstanding anything herein to the contrary, this General Release shall not apply to: (i) Executive’s rights of indemnification and directors and officers liability insurance coverage to which he was entitled immediately prior to [DATE] with regard to his service as an officer of Company; (ii) Executive's rights under any tax-qualified pension or claims for accrued vested benefits under any other employee benefit plan, policy or arrangement maintained by Company or under COBRA; (iii) Executive's rights under the provisions of the Company’s Executive Continuity and Protection Program which are intended to survive termination of employment; or (iv) Executive's rights as a stockholder. Excluded from this General Release are any claims which cannot be waived by law.
        [ For Current/Former California Residents Only: ] This General Release is intended to constitute a release of all of the claims referenced herein, known or unknown, suspected or unsuspected. Executive hereby expressly waives any rights and benefits conferred by Section 1542 of the California Civil Code which provides: "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR."
        2.     Executive acknowledges and recites that:
        (a)   Executive has executed this General Release knowingly and voluntarily;

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        (b)   Executive has read and understands this General Release in its entirety, including the waiver of rights under the Age Discrimination in Employment Act;
        (c)   Executive has been advised and directed orally and in writing (and this subparagraph (c) constitutes such written direction) to seek legal counsel and any other advice he wishes with respect to the terms of this General Release before executing it;
        (d)   Executive has sought such counsel, or freely and voluntarily waives the right to consult with counsel, and Executive has had an opportunity, if he so desires, to discuss with counsel the terms of this General Release and their meaning;
        (e)   Executive enters into this General Release knowingly and voluntarily, without duress or reservation of any kind, and after having given the matter full and careful consideration; and
        (f)    Executive has been offered 21 calendar days after receipt of this General Release to consider its terms before executing it.
        3.     This General Release shall be governed by the internal laws (and not the choice of law principles) of the State of Colorado, except for the application of pre-emptive federal law.
        4.     Executive shall have 7 days from the date hereof to revoke this General Release by providing written notice of the revocation to Company's General Counsel, in which event this General Release shall be unenforceable and null and void.
 
 
 
 
 
Date:
 
 
 
Peter H. Coors


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EXHIBIT B
FORM OF CONFIDENTIALITY AND NONCOMPETITION AGREEMENT
CONFIDENTIALITY AND NONCOMPETE AGREEMENT
        This Confidentiality and Noncompete Agreement (this “Agreement”), dated effective as of October 3, 2016 is between Molson Coors Brewing Company (the “Company”) and Peter H. Coors (the “Employee”) (collectively the “Parties”).
         Employee desires to continue to be employed by MCBC as an officer of the Company and/or one of its subsidiaries (collectively “MCBC”). In this role, Employee will be a manager and executive for MCBC, will have access to Confidential Information, or both.
         Pursuant to the Offer Letter between the Company and Employee, of even date herewith entry into this Agreement is a condition of continued employment.
        NOW THEREFORE, in consideration of Employee’s employment or continued employment with MCBC the Parties agree as follows:
         1.      Covenants Not to Compete or Interfere .
        a.     During the term of Employee's employment and for a period of 12 months thereafter in any jurisdiction in the world in which that MCBC then sells beer (the “Restricted Territory”), and regardless of the reason for Employee's termination, Employee shall not, within the Restricted Territory, directly or indirectly own, manage, operate, control, be employed by, serve as a consultant to or otherwise participate in any business that has services or products competitive with those of MCBC, or develop products or services competitive with those of MCBC.
        b.     Employee acknowledges that MCBC conduct business on a global basis and has customers throughout the Restricted Territory and that the geographic restriction on competition is therefore fair and reasonable.
        c.     During the term of Employee's employment with MCBC and for a period of 12 months thereafter, and regardless of the reason for Employee's termination, Employee shall not, with respect to any individual who is or at any time during the preceding three months was an executive or management employee of MCBC, engage in any of the following: (i) directly or indirectly cause or attempt to cause any such individual who is then employed by MCBC to leave the employ of MCBC, or (ii) directly or indirectly actively recruit or cause to be actively recruited any such individual to work for any organization of, or in which Employee is an officer, director, employee, consultant, independent contractor or owner of an equity interest; or (iii) directly or indirectly cause to be hired any such individual to work for any organization of, or in which Employee is an officer, director, employee, consultant, independent contractor or owner of an equity interest.
        d.     During the term of Employee's employment with MCBC and for a period of 12 months thereafter, and regardless of the reason for Employee's termination, Employee shall not solicit, divert or take away, or attempt to take away, the business or patronage of any client, customer or account, or prospective client, customer or account, of MCBC in the Restricted Territory which were contacted, solicited or served by Employee while employed by MCBC.
        e.     Employee acknowledges this is a contract for the protection of trade secrets and/or that Employee will be considered executive and management personnel under the following sections of Colorado Revised Statute § 8-2-113(2):

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Any covenant not to compete which restricts the right of any person to receive compensation for performance of skilled or unskilled labor for any employer shall be void, but this subsection (2) shall not apply to:
        (b)   Any contract for the protection of trade secrets;
        (d)   Executive and management personnel and officers and employees who constitute professional staff to executive and management personnel.
         2.      Confidential Information .
        a.     For purposes of this Agreement, “Confidential Information” includes any and all information and trade secrets, whether written or otherwise, relating to MCBC’s business, property, products, services, operations, sales, prospects, research, customers, business relationships, business plans and finances.
        b.     Employee acknowledges that while employed at MCBC, Employee will have access to Confidential Information. Employee further acknowledges that the Confidential Information is of great value to MCBC and that its improper disclosure will cause MCBC to suffer damages, including loss of profits.
        c.     Except in connection with and in furtherance of Employee’s official duties with and on behalf of MCBC, Employee shall not at any time or in any manner use, copy, disclose, divulge, transmit, convey, transfer or otherwise communicate any Confidential Information to any person or entity, either directly or indirectly, without the Company's prior written consent.
        d.     Employee agrees, upon employment with MCBC, not to disclose to MCBC any confidential information or trade secrets of former employers or other entities Employee has been associated with.
         3.      Injunctive Relief; Damages .    Employee acknowledges that any breach of this Agreement will cause irreparable injury to MCBC and that money damages alone would be inadequate to compensate it. Upon a breach or threatened breach by Employee of any of this Agreement, the Company shall be entitled to a temporary restraining order, preliminary injunction, permanent injunction or other relief restraining Employee from such breach without posting a bond. Nothing herein shall be construed as prohibiting MCBC from pursuing any other remedies for such breach or threatened breach, including recovery of damages from Employee.
         4.      Severability .    It is the desire and intent of the Parties that the provisions of this Agreement shall be enforced to the fullest extent permissible. Accordingly, if any provision of this Agreement shall prove to be invalid or unenforceable, the remainder of this Agreement shall not be affected, and in lieu, a provision as similar in terms as possible shall be added.
         5.      Entire Agreement; Governing Law .    Except as contemplated by the Offer Letter, this Agreement embodies the entire agreement between the Parties concerning the subject matters hereof and replaces and supersedes any prior or contemporaneous representations or agreements. This Agreement and all related obligations shall be governed by the laws of the State of Colorado.
         6.      Representation by Counsel .    Employee acknowledges that he has had an opportunity to consult with independent counsel prior to executing this Agreement.
         7.      Survival .    Employee's obligations under this Agreement shall survive the termination of Employee's employment and shall thereafter be enforceable whether or not such termination is later claimed or found to be wrongful or to constitute or result in a breach of any contract or of any other duty owed to Employee.

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         8.      Amendments; Waiver .    This Agreement may not be altered or amended, and no right hereunder may be waived, except by an instrument executed by each of the Parties.
        IN WITNESS WHEREOF the Parties have executed this Agreement as of the date first above written.
 
 
COMPANY:
 
 

Molson Coors Brewing Company, for itself
and its subsidiaries
 
 
By:
 


 
 
Its:
 
 
 
 
 
 
 
EMPLOYEE:
 
 
Peter H. Coors



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