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UNITED STATES |
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SECURITIES & EXCHANGE COMMISSION |
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Washington, D.C. 20549 |
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SCHEDULE 13D |
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Under the Securities Exchange Act of 1934
(Amendment No. 17)*
Monster Beverage Corporation
(Name of Issuer)
Common Stock
(Title of Class of Securities)
611740101
(CUSIP Number)
Rodney C. Sacks
1 Monster Way
Corona, California 92879
(951) 739-6200
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
September 12, 2013
(Date of Event Which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§ 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box o.
Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See § 240.13d-7 for other parties to whom copies are to be sent.
*The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.
The information required in the remainder of this cover page shall not be deemed to be "filed" for purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).
CUSIP No. 611740101 |
13D/A |
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(1) |
Names of Reporting Persons Brandon Limited Partnership No. 1 | |||||
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(2) |
Check the Appropriate Box if a Member of a Group (See Instructions) | |||||
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(a) |
o | ||||
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(b) |
o | ||||
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(3) |
SEC Use Only | |||||
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(4) |
Source of Funds (See Instructions) | |||||
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(5) |
Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) o | |||||
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(6) |
Citizenship or Place of Organization | |||||
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Number of |
(7) |
Sole Voting Power | |||||
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(8) |
Shared Voting Power | ||||||
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(9) |
Sole Dispositive Power | ||||||
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(10) |
Shared Dispositive Power | ||||||
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(11) |
Aggregate Amount Beneficially Owned by Each Reporting Person | |||||
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(12) |
Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) o | |||||
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(13) |
Percent of Class Represented by Amount in Row (11) | |||||
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(14) |
Type of Reporting Person (See Instructions) | |||||
CUSIP No. 611740101 |
13D/A |
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(1) |
Names of Reporting Persons Brandon Limited Partnership No. 2 | |||||
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(2) |
Check the Appropriate Box if a Member of a Group (See Instructions) | |||||
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(a) |
o | ||||
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(b) |
o | ||||
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(3) |
SEC Use Only | |||||
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(4) |
Source of Funds (See Instructions) | |||||
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(5) |
Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) o | |||||
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(6) |
Citizenship or Place of Organization | |||||
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Number of |
(7) |
Sole Voting Power | |||||
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(8) |
Shared Voting Power | ||||||
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(9) |
Sole Dispositive Power | ||||||
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(10) |
Shared Dispositive Power | ||||||
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(11) |
Aggregate Amount Beneficially Owned by Each Reporting Person | |||||
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(12) |
Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) o | |||||
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(13) |
Percent of Class Represented by Amount in Row (11) | |||||
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(14) |
Type of Reporting Person (See Instructions) | |||||
CUSIP No. 611740101 |
13D/A |
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(1) |
Names of Reporting Persons Rodney Cyril Sacks | |||||
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(2) |
Check the Appropriate Box if a Member of a Group (See Instructions) | |||||
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(a) |
o | ||||
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(b) |
o | ||||
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(3) |
SEC Use Only | |||||
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(4) |
Source of Funds (See Instructions) | |||||
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(5) |
Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) o | |||||
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(6) |
Citizenship or Place of Organization | |||||
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Number of |
(7) |
Sole Voting Power | |||||
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(8) |
Shared Voting Power | ||||||
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(9) |
Sole Dispositive Power | ||||||
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(10) |
Shared Dispositive Power | ||||||
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(11) |
Aggregate Amount Beneficially Owned by Each Reporting Person | |||||
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(12) |
Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) o | |||||
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(13) |
Percent of Class Represented by Amount in Row (11) | |||||
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(14) |
Type of Reporting Person (See Instructions) | |||||
CUSIP No. 611740101 |
13D/A |
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(1) |
Names of Reporting Persons Hilton Hiller Schlosberg | |||||
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(2) |
Check the Appropriate Box if a Member of a Group (See Instructions) | |||||
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(a) |
o | ||||
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(b) |
o | ||||
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(3) |
SEC Use Only | |||||
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(4) |
Source of Funds (See Instructions) | |||||
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(5) |
Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) o | |||||
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(6) |
Citizenship or Place of Organization | |||||
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Number of |
(7) |
Sole Voting Power | |||||
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(8) |
Shared Voting Power | ||||||
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(9) |
Sole Dispositive Power | ||||||
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(10) |
Shared Dispositive Power | ||||||
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(11) |
Aggregate Amount Beneficially Owned by Each Reporting Person | |||||
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(12) |
Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) o | |||||
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(13) |
Percent of Class Represented by Amount in Row (11) | |||||
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(14) |
Type of Reporting Person (See Instructions) | |||||
CUSIP No. 611740101 |
13D/A |
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(1) |
Names of Reporting Persons HRS Holdings, L.P. | |||||
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(2) |
Check the Appropriate Box if a Member of a Group (See Instructions) | |||||
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(a) |
o | ||||
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(b) |
o | ||||
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(3) |
SEC Use Only | |||||
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(4) |
Source of Funds (See Instructions) | |||||
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(5) |
Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) o | |||||
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(6) |
Citizenship or Place of Organization | |||||
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Number of |
(7) |
Sole Voting Power | |||||
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(8) |
Shared Voting Power | ||||||
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(9) |
Sole Dispositive Power | ||||||
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(10) |
Shared Dispositive Power | ||||||
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(11) |
Aggregate Amount Beneficially Owned by Each Reporting Person | |||||
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(12) |
Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) o | |||||
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(13) |
Percent of Class Represented by Amount in Row (11) | |||||
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(14) |
Type of Reporting Person (See Instructions) | |||||
CUSIP No. 611740101 |
13D/A |
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(1) |
Names of Reporting Persons Hilrod Holdings, L.P. | |||||
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(2) |
Check the Appropriate Box if a Member of a Group (See Instructions) | |||||
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(a) |
o | ||||
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(b) |
o | ||||
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(3) |
SEC Use Only | |||||
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(4) |
Source of Funds (See Instructions) | |||||
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(5) |
Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) o | |||||
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(6) |
Citizenship or Place of Organization | |||||
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Number of |
(7) |
Sole Voting Power | |||||
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(8) |
Shared Voting Power | ||||||
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(9) |
Sole Dispositive Power | ||||||
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(10) |
Shared Dispositive Power | ||||||
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(11) |
Aggregate Amount Beneficially Owned by Each Reporting Person | |||||
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(12) |
Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) o | |||||
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(13) |
Percent of Class Represented by Amount in Row (11) | |||||
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(14) |
Type of Reporting Person (See Instructions) | |||||
CUSIP No. 611740101 |
13D/A |
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(1) |
Names of Reporting Persons Hilrod Holdings IV, L.P. | |||||
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(2) |
Check the Appropriate Box if a Member of a Group (See Instructions) | |||||
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(a) |
o | ||||
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(b) |
o | ||||
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(3) |
SEC Use Only | |||||
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(4) |
Source of Funds (See Instructions) | |||||
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(5) |
Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) o | |||||
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(6) |
Citizenship or Place of Organization | |||||
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Number of |
(7) |
Sole Voting Power | |||||
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(8) |
Shared Voting Power | ||||||
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(9) |
Sole Dispositive Power | ||||||
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(10) |
Shared Dispositive Power | ||||||
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(11) |
Aggregate Amount Beneficially Owned by Each Reporting Person | |||||
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(12) |
Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) o | |||||
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(13) |
Percent of Class Represented by Amount in Row (11) | |||||
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(14) |
Type of Reporting Person (See Instructions) | |||||
CUSIP No. 611740101 |
13D/A |
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(1) |
Names of Reporting Persons Hilrod Holdings V, L.P. | |||||
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(2) |
Check the Appropriate Box if a Member of a Group (See Instructions) | |||||
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(a) |
o | ||||
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(b) |
o | ||||
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(3) |
SEC Use Only | |||||
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(4) |
Source of Funds (See Instructions) | |||||
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(5) |
Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) o | |||||
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(6) |
Citizenship or Place of Organization | |||||
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Number of |
(7) |
Sole Voting Power | |||||
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(8) |
Shared Voting Power | ||||||
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(9) |
Sole Dispositive Power | ||||||
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(10) |
Shared Dispositive Power | ||||||
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(11) |
Aggregate Amount Beneficially Owned by Each Reporting Person | |||||
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(12) |
Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) o | |||||
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(13) |
Percent of Class Represented by Amount in Row (11) | |||||
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(14) |
Type of Reporting Person (See Instructions) | |||||
CUSIP No. 611740101 |
13D/A |
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(1) |
Names of Reporting Persons Hilrod Holdings VI, L.P. | |||||
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(2) |
Check the Appropriate Box if a Member of a Group (See Instructions) | |||||
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(a) |
o | ||||
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(b) |
o | ||||
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(3) |
SEC Use Only | |||||
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(4) |
Source of Funds (See Instructions) | |||||
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(5) |
Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) o | |||||
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(6) |
Citizenship or Place of Organization | |||||
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Number of |
(7) |
Sole Voting Power | |||||
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(8) |
Shared Voting Power | ||||||
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(9) |
Sole Dispositive Power | ||||||
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(10) |
Shared Dispositive Power | ||||||
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|
(11) |
Aggregate Amount Beneficially Owned by Each Reporting Person | |||||
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(12) |
Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) o | |||||
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(13) |
Percent of Class Represented by Amount in Row (11) | |||||
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(14) |
Type of Reporting Person (See Instructions) | |||||
CUSIP No. 611740101 |
13D/A |
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(1) |
Names of Reporting Persons Hilrod Holdings VII, L.P. | |||||
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(2) |
Check the Appropriate Box if a Member of a Group (See Instructions) | |||||
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(a) |
o | ||||
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(b) |
o | ||||
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(3) |
SEC Use Only | |||||
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(4) |
Source of Funds (See Instructions) | |||||
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(5) |
Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) o | |||||
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(6) |
Citizenship or Place of Organization | |||||
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Number of |
(7) |
Sole Voting Power | |||||
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(8) |
Shared Voting Power | ||||||
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(9) |
Sole Dispositive Power | ||||||
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(10) |
Shared Dispositive Power | ||||||
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(11) |
Aggregate Amount Beneficially Owned by Each Reporting Person | |||||
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(12) |
Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) o | |||||
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(13) |
Percent of Class Represented by Amount in Row (11) | |||||
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(14) |
Type of Reporting Person (See Instructions) | |||||
CUSIP No. 611740101 |
13D/A |
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(1) |
Names of Reporting Persons Hilrod Holdings VIII, L.P. | |||||
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(2) |
Check the Appropriate Box if a Member of a Group (See Instructions) | |||||
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(a) |
o | ||||
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(b) |
o | ||||
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(3) |
SEC Use Only | |||||
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(4) |
Source of Funds (See Instructions) | |||||
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(5) |
Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) o | |||||
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(6) |
Citizenship or Place of Organization | |||||
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Number of |
(7) |
Sole Voting Power | |||||
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(8) |
Shared Voting Power | ||||||
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(9) |
Sole Dispositive Power | ||||||
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(10) |
Shared Dispositive Power | ||||||
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(11) |
Aggregate Amount Beneficially Owned by Each Reporting Person | |||||
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(12) |
Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) o | |||||
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(13) |
Percent of Class Represented by Amount in Row (11) | |||||
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(14) |
Type of Reporting Person (See Instructions) | |||||
CUSIP No. 611740101 |
13D/A |
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(1) |
Names of Reporting Persons Hilrod Holdings IX, L.P. | |||||
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(2) |
Check the Appropriate Box if a Member of a Group (See Instructions) | |||||
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(a) |
o | ||||
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(b) |
o | ||||
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(3) |
SEC Use Only | |||||
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(4) |
Source of Funds (See Instructions) | |||||
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(5) |
Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) o | |||||
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(6) |
Citizenship or Place of Organization | |||||
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Number of |
(7) |
Sole Voting Power | |||||
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(8) |
Shared Voting Power | ||||||
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(9) |
Sole Dispositive Power | ||||||
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(10) |
Shared Dispositive Power | ||||||
| |||||||
|
(11) |
Aggregate Amount Beneficially Owned by Each Reporting Person | |||||
| |||||||
|
(12) |
Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) o | |||||
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(13) |
Percent of Class Represented by Amount in Row (11) | |||||
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|
(14) |
Type of Reporting Person (See Instructions) | |||||
CUSIP No. 611740101 |
13D/A |
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(1) |
Names of Reporting Persons Hilrod Holdings X, L.P. | |||||
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(2) |
Check the Appropriate Box if a Member of a Group (See Instructions) | |||||
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(a) |
o | ||||
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(b) |
o | ||||
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(3) |
SEC Use Only | |||||
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(4) |
Source of Funds (See Instructions) | |||||
| |||||||
|
(5) |
Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) o | |||||
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(6) |
Citizenship or Place of Organization | |||||
| |||||||
Number of |
(7) |
Sole Voting Power | |||||
| |||||||
(8) |
Shared Voting Power | ||||||
| |||||||
(9) |
Sole Dispositive Power | ||||||
| |||||||
(10) |
Shared Dispositive Power | ||||||
| |||||||
|
(11) |
Aggregate Amount Beneficially Owned by Each Reporting Person | |||||
| |||||||
|
(12) |
Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) o | |||||
| |||||||
|
(13) |
Percent of Class Represented by Amount in Row (11) | |||||
| |||||||
|
(14) |
Type of Reporting Person (See Instructions) | |||||
CUSIP No. 611740101 |
13D/A |
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(1) |
Names of Reporting Persons Hilrod Holdings XI, L.P. | |||||
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(2) |
Check the Appropriate Box if a Member of a Group (See Instructions) | |||||
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(a) |
o | ||||
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(b) |
o | ||||
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(3) |
SEC Use Only | |||||
| |||||||
|
(4) |
Source of Funds (See Instructions) | |||||
| |||||||
|
(5) |
Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) o | |||||
| |||||||
|
(6) |
Citizenship or Place of Organization | |||||
| |||||||
Number of |
(7) |
Sole Voting Power | |||||
| |||||||
(8) |
Shared Voting Power | ||||||
| |||||||
(9) |
Sole Dispositive Power | ||||||
| |||||||
(10) |
Shared Dispositive Power | ||||||
| |||||||
|
(11) |
Aggregate Amount Beneficially Owned by Each Reporting Person | |||||
| |||||||
|
(12) |
Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) o | |||||
| |||||||
|
(13) |
Percent of Class Represented by Amount in Row (11) | |||||
| |||||||
|
(14) |
Type of Reporting Person (See Instructions) | |||||
CUSIP No. 611740101 |
13D/A |
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(1) |
Names of Reporting Persons | |||||
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(2) |
Check the Appropriate Box if a Member of a Group (See Instructions) | |||||
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(a) |
o | ||||
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(b) |
o | ||||
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(3) |
SEC Use Only | |||||
| |||||||
|
(4) |
Source of Funds (See Instructions) | |||||
| |||||||
|
(5) |
Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) o | |||||
| |||||||
|
(6) |
Citizenship or Place of Organization | |||||
| |||||||
Number of |
(7) |
Sole Voting Power | |||||
| |||||||
(8) |
Shared Voting Power | ||||||
| |||||||
(9) |
Sole Dispositive Power | ||||||
| |||||||
(10) |
Shared Dispositive Power | ||||||
| |||||||
|
(11) |
Aggregate Amount Beneficially Owned by Each Reporting Person | |||||
| |||||||
|
(12) |
Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) o | |||||
| |||||||
|
(13) |
Percent of Class Represented by Amount in Row (11) | |||||
| |||||||
|
(14) |
Type of Reporting Person (See Instructions) | |||||
CUSIP No. 611740101 |
13D/A |
| |||||
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(1) |
Names of Reporting Persons | |||||
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(2) |
Check the Appropriate Box if a Member of a Group (See Instructions) | |||||
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(a) |
o | ||||
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(b) |
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CUSIP No. 611740101 |
13D/A |
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CUSIP No. 611740101 |
13D/A |
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CUSIP No. 611740101 |
13D/A |
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CUSIP No. 611740101 |
13D/A |
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Aggregate Amount Beneficially Owned by Each Reporting Person | |||||
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CUSIP No. 611740101 |
13D/A |
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Introduction
This Amendment No. 17 (Amendment No. 17) amends the statement on Schedule 13D dated November 21, 1990 (the Original Statement), as amended by Amendment No. 1 dated March 29, 1991 (Amendment No. 1), Amendment No. 2 dated June 11, 1993 (Amendment No. 2), Amendment No. 3 dated August 29, 1994 (Amendment No. 3), Amendment No. 4 dated November 22, 2004 (Amendment No. 4), Amendment No. 5 dated December 1, 2004 (Amendment No. 5), Amendment No. 6 dated December 29, 2005 (Amendment No. 6), Amendment No. 7 dated January 13, 2006 (Amendment No. 7), Amendment No. 8 dated February 2, 2006 (Amendment No. 8), Amendment No. 9 dated February 23, 2010 (Amendment No. 9), Amendment No. 10 dated November 23, 2010 (Amendment No. 10), Amendment No. 11 dated December 16, 2011 (Amendment No. 11), Amendment No. 12 dated April 24, 2012 (Amendment No. 12), Amendment No. 13 dated May 21, 2012 (Amendment No. 13), Amendment No. 14 dated December 17, 2012 (Amendment No. 14), Amendment No. 15 dated March 18, 2013 (Amendment No. 15) and Amendment No. 16 dated July 29, 2013 (Amendment No. 16) (the Original Statement, Amendment No. 1, Amendment No. 2, Amendment No. 3, Amendment No. 4, Amendment No. 5, Amendment No. 6, Amendment No. 7, Amendment No. 8, Amendment No. 9, Amendment No. 10, Amendment No. 11, Amendment No. 12, Amendment No. 13, Amendment No. 14, Amendment No. 15, Amendment No. 16 and Amendment No. 17 are sometimes referred to herein collectively as this statement on Schedule 13D), relating to the common stock, par value $0.005 per share (Common Stock), of Monster Beverage Corporation, a corporation organized under the laws of the state of Delaware (the Company). This Amendment No. 17 reflects transactions and developments through September 12, 2013, relating to such persons respective holdings of the Company. The Reporting Persons may be deemed to constitute a group and, accordingly, jointly file this Amendment No. 17.
Any capitalized terms used in this Amendment No. 17 and not otherwise defined herein shall have the meanings ascribed to such terms in the Original Statement, as amended by Amendment No. 1, Amendment No. 2, Amendment No. 3, Amendment No. 4, Amendment No. 5, Amendment No. 6, Amendment No. 7, Amendment No. 8, Amendment No. 9, Amendment No. 10, Amendment No. 11, Amendment No. 12, Amendment No. 13, Amendment No. 14, Amendment No. 15 and Amendment No. 16.
This Amendment No. 17 is being filed to reflect the entry into a plan intended to comply with Rule 10b5-1 promulgated under the Securities Exchange Act of 1934, as amended (the Exchange Act).
Item 4. Purpose of Transaction
Item 4 is hereby amended and supplemented by adding the following:
On September 12, 2013, Mr. Sacks and Mr. Schlosberg each entered into a trading plan, effective as of October 1, 2013 (collectively, the Trading Plans), with J.P. Morgan Securities LLC (Broker) pursuant to which Broker is authorized and directed to sell on behalf of each of Mr. Sacks and Mr. Schlosberg up to 200,000 shares of Common Stock through December 12, 2013, subject to satisfaction of certain conditions, including, among others, trading price. Copies of the Trading Plans are being filed as exhibits hereto and the foregoing description of the Trading Plans is qualified in its entirety by reference to the Trading Plans.
None of the Reporting Persons has any present plans or proposals which relate to or would result in any of the matters set forth in subparagraphs (a)-(j) of Item 4 of Schedule 13D except as otherwise discussed in this Item 4. The Reporting Persons may, from time to time, and reserve the right to, change their plans or intentions and to take any and all actions that they deem appropriate to maximize the value of their investment, including, among other things, from time to time, disposing of any securities of the Company owned by them or formulating other plans or proposals regarding the Company or its securities to the extent deemed advisable by the Reporting Persons in light of market conditions, subsequent developments affecting the Company, the general business and future prospects of the Company, tax considerations and other factors. Such other plans and proposals may include, without limitation, the entry into additional stock trading plans intended to comply with Rule 10b5-1 promulgated under the Exchange Act.
Item 5. Interest in Securities of the Issuer
Item 5 is hereby amended by deleting Item 5 in its entirety and inserting in lieu thereof the following:
(a)-(b) See rows (7) through (10) of the cover pages to this Amendment No. 17 for the number of shares of Common Stock as to which each Reporting Person has sole or shared power to vote or direct the vote and sole or shared power to dispose or to direct the disposition. See rows (11) and (13) of the cover pages to this Amendment No. 17 for the aggregate number and percentage of shares of Common Stock beneficially owned by each of the Reporting Persons. Percentages calculated in this Amendment No. 17 with respect to Brandon No. 1, Brandon No. 2, HRS Holdings, Hilrod, Hilrod IV, Hilrod V, Hilrod VI, Hilrod VII, Hilrod VIII, Hilrod IX, Hilrod X, Hilrod XI, Hilrod XII, RCS 2008, RCS 2009, RCS Direct, RCS Direct #2 and RCS Direct 2011 are based upon 167,648,696 shares of Common Stock outstanding as of September 11, 2013 (the Aggregate Outstanding Shares), as provided by the Company to the Reporting Persons. Percentages calculated in this Amendment No. 17 with respect to each of Mr. Sacks and Mr. Schlosberg are based upon 170,939,890 shares of Common Stock, which is the sum of the Aggregate Outstanding Shares plus the 3,291,194 shares of Common Stock issuable to each of Mr. Sacks and Mr. Schlosberg upon the exercise of options to purchase Common Stock held by him.
As of September 16, 2013, the aggregate number and percentage of shares of Common Stock beneficially owned by the Reporting Persons is 23,350,082 shares, or 13.4% of the outstanding Common Stock. Percentages calculated in this Amendment No. 17 with respect to the Reporting Persons as a group are based upon 174,231,084 shares of Common Stock, which is the sum of the Aggregate Outstanding Shares plus the 6,582,388 aggregate shares of Common Stock issuable to the Reporting Persons upon the exercise of options to purchase Common Stock.
Each of the Reporting Persons disclaims beneficial ownership of the Common Stock held by the other Reporting Persons, except for (a) with respect to Mr. Sacks: (i) 1,592,858 shares of Common Stock beneficially held by him; (ii) 3,291,194 shares presently exercisable under the stock option agreements; (iii) 1,849 shares beneficially held by Hilrod IV because Mr. Sacks is one of Hilrod IVs general partners; (iv) 714 shares beneficially held by Hilrod V because Mr. Sacks is one of Hilrod Vs general partners; (v) 2,579 shares beneficially held by Hilrod VI because Mr. Sacks is one of Hilrod VIs general partners; (vi) 401 shares beneficially held by Hilrod VII because Mr. Sacks is one of Hilrod VIIs general partners; (vii) 1,895 shares beneficially held by Hilrod VIII because Mr. Sacks is one of Hilrod VIIIs general partners; (viii) 4,537 shares beneficially held by Hilrod IX because Mr. Sacks is one of Hilrod IXs general partners; (ix) 923 shares beneficially held by Hilrod X because Mr. Sacks is one of Hilrod Xs general partners; (x) 1,684 shares beneficially held by Hilrod XI because Mr. Sacks is one of Hilrod XIs general partners; and (xi) 1,704 shares beneficially held by Hilrod XII because Mr. Sacks is one of Hilrod XIIs general partners; and (b) with respect to Mr. Schlosberg: (i) 1,489,412 shares of Common Stock beneficially held by him; (ii) 3,291,194 shares presently exercisable under the stock option agreements; (iii) 1,849 shares beneficially held by Hilrod IV because Mr. Schlosberg is one of Hilrod IVs general partners; (iv) 714 shares beneficially held by Hilrod V because Mr. Schlosberg is one of Hilrod Vs general partners; (v) 2,579 shares beneficially held by Hilrod VI because Mr. Schlosberg is one of Hilrod VIs general partners; (vi) 401 shares beneficially held by Hilrod VII because Mr. Schlosberg is one of Hilrod VIIs general partners; (vii) 1,895 shares beneficially held by Hilrod VIII because Mr. Schlosberg is one of Hilrod VIIIs general partners; (vii) 4,537 shares beneficially held by Hilrod IX because Mr. Schlosberg is one of Hilrod IXs general partners; (ix) 923 shares beneficially held by Hilrod X because Mr. Schlosberg is one of Hilrod Xs general partners; (x) 1,684 shares beneficially held by Hilrod XI because Mr. Schlosberg is one of Hilrod XIs general partners; and (xi) 1,704 shares beneficially held by Hilrod XII because Mr. Schlosberg is one of Hilrod XIIs general partners.
(c) All transactions effected by the Reporting Persons in the Companys securities since the filing of Amendment No. 16 are set forth in Schedule A hereto.
(d) No other person is known to have the right to receive, or the power to direct the receipt of dividends from, or the proceeds from the sale of, such securities.
(e) Not applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer
Item 6 is hereby amended and supplemented by adding the following:
See Item 4 above for a description of the Trading Plans, which is incorporated herein by reference.
Item 7. Material to be Filed as Exhibits.
1. Trading Plan between Mr. Sacks and Broker, dated September 12, 2013.
2. Trading Plan between Mr. Schlosberg and Broker, dated September 12, 2013.
CUSIP No. 611740101 |
13D/A |
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SIGNATURES
After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.
September 16, 2013 |
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BRANDON LIMITED PARTNERSHIP NO. 1 | ||
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By: |
/s/ Rodney C. Sacks | |
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Name: |
Rodney C. Sacks |
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Title: |
General Partner |
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BRANDON LIMITED PARTNERSHIP NO. 2 | ||
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By: |
/s/ Rodney C. Sacks | |
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Name: |
Rodney C. Sacks |
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Title: |
General Partner |
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HRS HOLDINGS, L.P. | ||
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By: |
/s/ Hilton H. Schlosberg | |
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Name: |
Hilton H. Schlosberg |
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Title: |
General Partner |
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Hilrod Holdings, L.P. | ||
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By: |
/s/ Hilton H. Schlosberg | |
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Name: |
Hilton H. Schlosberg |
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Title: |
General Partner |
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Hilrod Holdings IV, L.P. | ||
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By: |
/s/ Hilton H. Schlosberg | |
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Name: |
Hilton H. Schlosberg |
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Title: |
General Partner |
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Hilrod Holdings V, L.P. | ||
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By: |
/s/ Hilton H. Schlosberg | |
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Name: |
Hilton H. Schlosberg |
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Title: |
General Partner |
CUSIP No. 611740101 |
13D/A |
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Hilrod Holdings VI, L.P. | ||
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By: |
/s/ Hilton H. Schlosberg | |
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Name: |
Hilton H. Schlosberg |
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Title: |
General Partner |
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Hilrod Holdings VII, L.P. | ||
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By: |
/s/ Hilton H. Schlosberg | |
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Name: |
Hilton H. Schlosberg |
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Title: |
General Partner |
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Hilrod Holdings VIII, L.P. | ||
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By: |
/s/ Hilton H. Schlosberg | |
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Name: |
Hilton H. Schlosberg |
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Title: |
General Partner |
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Hilrod Holdings IX, L.P. | ||
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By: |
/s/ Hilton H. Schlosberg | |
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Name: |
Hilton H. Schlosberg |
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Title: |
General Partner |
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Hilrod Holdings X, L.P. | ||
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By: |
/s/ Hilton H. Schlosberg | |
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Name: |
Hilton H. Schlosberg |
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Title: |
General Partner |
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Hilrod Holdings XI, L.P. | ||
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By: |
/s/ Hilton H. Schlosberg | |
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Name: |
Hilton H. Schlosberg |
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Title: |
General Partner |
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Hilrod Holdings XII, L.P. | ||
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By: |
/s/ Hilton H. Schlosberg | |
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Name: |
Hilton H. Schlosberg |
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Title: |
General Partner |
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The Rodney C. Sacks 2008 Grantor Retained Annuity Trust #2 | ||
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By: |
/s/ Hilton H. Schlosberg | |
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Name: |
Hilton H. Schlosberg |
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Title: |
Co-Trustee |
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The Rodney C. Sacks 2009 Grantor Retained Annuity Trust #2 | ||
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By: |
/s/ Rodney C. Sacks | |
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Name: |
Rodney C. Sacks |
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Title: |
Trustee |
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The RCS Direct 2010 Grantor Retained Annuity Trust | ||
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By: |
/s/ Rodney C. Sacks | |
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Name: |
Rodney C. Sacks |
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Title: |
Trustee |
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The RCS Direct 2010 Grantor Retained Annuity Trust #2 | ||
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By: |
/s/ Rodney C. Sacks | |
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Name: |
Rodney C. Sacks |
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Title: |
Trustee |
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The RCS Direct 2011 Grantor Retained Annuity Trust | ||
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By: |
/s/ Hilton H. Schlosberg | |
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Name: |
Hilton H. Schlosberg |
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Title: |
Trustee |
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/s/ Rodney C. Sacks | ||
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RODNEY C. SACKS | ||
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/s/ Hilton H. Schlosberg | ||
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HILTON H. SCHLOSBERG |
SCHEDULE A
The following are the transactions in the Companys securities since the filing of Amendment No. 16:
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|
Date of Transaction |
|
No. of Securities |
|
Average Price Per |
|
Range of Prices Per |
| |
Mr. Sacks |
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08/05/2013 |
|
5,311 |
|
$ |
0 |
(1) |
N/A |
|
RCS Direct 2010 GRAT #2 |
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08/05/2013 |
|
(5,311 |
) |
$ |
0 |
(1) |
N/A |
|
Mr. Sacks |
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08/05/2013 |
|
9,111 |
|
$ |
0 |
(2) |
N/A |
|
Mr. Schlosberg |
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08/05/2013 |
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9,111 |
|
$ |
0 |
(2) |
N/A |
|
Hilrod Holdings XI, L.P. |
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08/05/2013 |
|
(18,222 |
) |
$ |
0 |
(2) |
N/A |
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Mr. Sacks |
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09/01/2013 |
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87,000 |
|
$ |
0 |
(3) |
N/A |
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Mr. Schlosberg |
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09/01/2013 |
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87,000 |
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$ |
0 |
(4) |
N/A |
|
(1) Represents the distribution of shares by RCS Direct 2010 GRAT #2 to Mr. Sacks as the proceeds of an in-kind annuity payment from an existing grantor retained annuity trust.
(2) Represents the distribution of shares by Hilrod Holdings XI, L.P. to Mr. Sacks and Mr. Schlosberg as the proceeds of in-kind annuity payments from existing grantor retained annuity trusts.
(3) On September 1, 2013, Mr. Sacks received 87,000 shares of Common Stock in connection with the settlement of restricted stock units vesting on such date, each of which represented a contingent right to receive one share of Common Stock as of the vesting date.
(4) On September 1, 2013, Mr. Schlosberg received 87,000 shares of Common Stock in connection with the settlement of restricted stock units vesting on such date, each of which represented a contingent right to receive one share of Common Stock as of the vesting date.
CUSIP No. 611740101 |
13D/A |
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EXHIBIT INDEX
1. Trading Plan between Rodney C. Sacks and J.P. Morgan Securities LLC, dated September 12, 2013.
2. Trading Plan between Hilton H. Schlosberg and J.P. Morgan Securities LLC, dated September 12, 2013.
Exhibit 1
Sales Plan
Sales Plan, adopted September 12, 2013 (the Sales Plan), between Rodney Sacks (Seller) and J.P. Morgan Securities LLC (JPMS). The purpose of this Sales Plan is to achieve the investment objectives of broader diversification of investments, while reducing the risk of over concentration in a particular investment.
RECITALS
WHEREAS, the Seller desires to establish this Sales Plan to sell common shares (the Stock) of Monster Beverage Corporation (the Issuer); and
WHEREAS, the Seller desires to sell a total of 200,000 shares of Stock (the Total Plan Shares), and
WHEREAS, the Seller desires to engage JPMS to effect sales of shares of Stock in accordance with the Sales Plan;
NOW, THEREFORE, the Seller and JPMS hereby agree as follows:
A. IMPLEMENTATION OF THE SALES PLAN
1. JPMS shall effect sales (each a Sale) of shares of Stock only on days on which the Nasdaq Global Select (the Exchange) is open and the Stock trades regular way on the Exchange, pursuant to the specific instructions specified on Schedule A.
2. Seller acknowledges and agrees that JPMS will handle the above order on a best efforts basis. In the event any limit prices of orders are away from the prevailing market prices at any time, there can be no assurance that such orders will be executed in whole or in part. Seller agrees that all orders may be partially executed and will not be treated as an all or none order. JPMS may effect sales of Stock which may coincide with sales of Stock by other accounts held with JPMS including, but not limited to, sales made pursuant to other sales plans with JPMS. In such instances, JPMS will make allocations in a manner believed by JPMS to be equitable to each client. JPMS may aggregate sales of Stock under the Sales Plan with sales of the Stock by other JPMS accounts.
3. Seller agrees to deposit 200,000 shares of Stock into the JPMorgan Chase Bank, N.A. Asset Custody Account or JPMS Margin Brokerage Account (Account). JPMS reserves the right to suspend or cancel this Sales Plan prior to the first Sale if the shares of Stock have not been deposited into an Account for any reason. JPMS shall withdraw Stock from the Sellers Account in order to effect sales of Stock under this Sales Plan. If on any day that sales are to be made under this Sales Plan the number of shares of Stock in the Sellers Account is less than the number of shares to be sold on such day, then JPMS shall notify Seller promptly of such deficiency, and Seller agrees to promptly deposit into the Account the number of shares of Stock necessary to eliminate such deficiency.
4. Seller agrees not to remove or transfer shares of Stock out of the Account, in any manner that would cause an alteration of, or deviation from, the terms of this Sales Plan.
5. To the extent that any Stock remains in the Sellers Account upon termination of this Sales Plan, JPMS agrees to return any such Stock for which JPMS had restrictions removed for the purpose of this Sales Plan promptly to the Issuers transfer agent for relegending to the extent that such Stock would then be subject to transfer restrictions in the hands of the Seller.
6. JPMS will deduct its reasonable and customary commissions from the proceeds of sales of Stock under this Sales Plan, together with any other expenses incurred by JPMS in connection with such sales.
7. The Total Plan Shares, the shares to be sold on a particular day, and the limit prices, shall be adjusted automatically on a proportionate basis to take into account any stock split, reverse stock split or stock dividend with respect to the Stock or any change in capitalization with respect to the Issuer that occurs during the term of this Sales Plan.
8. Subject to Paragraph F.5, this Sales Plan shall become effective on October 1, 2013 (Effective Date), and shall terminate on the earlier of (a) the close of business on December 12, 2013; (b) the date on which the Total Plan Shares have been sold; (c) the date this Sales Plan is terminated pursuant to Section E; (d) the date on which the unit of JPMS responsible for executing sales of Stock pursuant to this Sales Plan receives notice or otherwise becomes aware of (i) the closing of a tender or exchange offer with respect to the Stock or of a merger, acquisition, reorganization, recapitalization or comparable transaction affecting the securities of the Issuer as a result of which the Stock is to be exchanged or converted into shares of another company or for other consideration; (ii) the death or mental incapacity of the Seller; or (iii) the commencement or impending commencement of any proceedings in respect of or triggered by Sellers bankruptcy or insolvency.
9. Seller acknowledges and agrees that he does not have authority, influence or control over any sales of Stock effected by JPMS pursuant to this Sales Plan, and will not attempt to exercise any authority, influence or control over such sales. JPMS agrees not to seek advice from Seller with respect to the manner in which it effects sales under this Sales Plan. JPMS shall execute the trades in such a way as to attempt to minimize the negative price impact on the market and to attempt to maximize the prices obtained for the shares sold. JPMS may use its discretion in how to work the order to attempt to achieve the best execution above the minimum price per share, but at no time will the Seller communicate to JPMS any instructions on how to execute the order.
10. Seller will be notified of all transactions pursuant to customary trade confirmations that are provided in the normal course of business. In addition, JPMS will use reasonable efforts to notify both the Issuer and the Seller via email of each transaction pursuant to this Sales Plan no later than one business day after the trading date of such transaction.
11. Seller understands that JPMS may not be able to effect a sale due to a market disruption or a legal, regulatory or contractual restriction applicable to JPMS, an insufficient number of shares of Stock being in the Account, JPMS having received written confirmation from the Issuer that the Issuer has not complied with the reporting requirements of Section 13 or 15(d) of the Exchange Act that are a condition to complying with Rule 144 or 145 under the Securities Act of 1933 (the Securities Act), or a pending sale under this Sales Plan causing Seller to exceed any applicable volume limitations of Rule 144 or 145 under the Securities Act. If any sale cannot be executed as required by Paragraph A.1 due to: (a) Issuer not complying with the reporting requirements of Section 13 or 15(d) of the Exchange Act that are a condition to complying with Rule 144 or 145 under the Securities Act, JPMS will carry over any unsold shares to be sold in whole or in increments pursuant to the terms of Schedule A as and when the Issuer has provided written confirmation to JPMS that the Issuer is currently compliant with such reporting requirements; (b) the applicable volume limitations of Rule 144 or 145 under the Securities Act, then JPMS will recalculate the volume limitations on a weekly basis and carry over any unsold shares to be sold in whole or in increments pursuant to the terms of Schedule A as and when the volume limitations permit; or (c) a market disruption, a legal, regulatory or contractual restriction applicable to JPMS or any other such event, such sale shall be cancelled and shall not be effected pursuant to this Sales Plan, and, notwithstanding any language to the contrary herein, there shall be no carryover associated with such cancelled sale other than as set forth in Schedule A.
12. It is the intent of the parties that this Sales Plan comply with the requirements of Rule 10b5-1(c)(1)(i)(B) under the Exchange Act and this Sales Plan shall be interpreted to comply with the requirements of Rule 10b5-1(c).
13. In the event that it is necessary for JPMS to borrow or purchase shares of Stock in order to complete any sale on behalf of Seller pursuant to this sales Plan, Seller authorizes JPMS to borrow or purchase such shares and agrees to be responsible for any expense or loss which JPMS may sustain relating to such borrowing or purchase, including any expense or loss JPMS may sustain as a result of its inability to borrow or purchase shares of Stock to complete its delivery obligation.
B. RULES 144 AND 145
The following three paragraphs shall only apply to Sellers who are subject to Rules 144 and 145.
1. JPMS agrees to conduct all sales in accordance with the manner of sale requirement of Rule 144 or 145 under the Securities Act, and in no event shall JPMS effect any such sale if such sale would exceed the then applicable volume limitation under Rule 144, assuming JPMSs sales under this Sales Plan and those notified to JPMS pursuant to Paragraph B.3 are the only sales subject to that limitation. JPMS will be responsible for completing and filing on behalf of the Seller the required Form 144s that Seller shall execute and provide, as requested by JPMS. Seller understands and agrees that JPMS shall make one Form 144 filing at the start of each three-month period with the initial filing made on the date on which the first order to sell Stock is placed hereunder.
2. Each such Form 144 shall state in the Remarks section that the sales thereunder are being made pursuant to a previously adopted plan intended to comply with Rule 10b5-1(c), shall include the date the Seller adopted this Sales Plan and shall indicate that the representation regarding the Sellers knowledge of material information speaks as of the adoption date of this Sales Plan.
3. Seller agrees not to take any action that would cause the sales not to comply with Rule 144 or 145, and Seller agrees not to cause any person or entity with which Seller would be required to aggregate sales of Stock pursuant to paragraph (a)(2) or (e) of Rule 144 to take any action that would cause the sales not to comply with Rules 144 or 145. Seller may not enter into any other selling program or transaction without the prior consent of JPMS. Notwithstanding the foregoing, the Seller may without the prior written consent of JPMS enter into additional sales transactions starting November 12, 2013. Such additional sale transactions outside of the Sales Plan will only be conducted through JPMS and Seller will take all necessary steps so that such additional sales transactions will not cause the sales under this Sales Plan to no longer comply with Rule 144 or 145.
C. REPRESENTATIONS AND AGREEMENTS OF SELLER
1. Seller represents and warrants that as of the time of execution of, and entering into, this Sales Plan: (a) to the best of Sellers knowledge there is no blackout period (as defined in 17 C.F.R. Section 245.100(b), a Blackout Period) in effect for Issuer, (b) the Seller is not aware of material, nonpublic information with respect to the Issuer or any securities of the Issuer (including the Stock) or of the actual or approximate beginning or ending dates of a Blackout Period for Issuer, and (c) the Seller is entering into this Sales Plan in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b5-1 under the Exchange Act or other applicable securities laws.
2. At the time of Sellers execution of this Sales Plan, Seller has not entered into or altered a corresponding or hedging transaction with respect to the Total Plan Shares. Seller agrees not to enter into any such transaction while this Sales Plan remains in effect.
3. Seller agrees to make all filings, if any, required under and monitor his own compliance with Sections 13(d), 13(g) and 16 of the Exchange Act.
4. Except as provided in Paragraph B.1, Seller acknowledges and agrees that JPMS has no duty to determine whether Seller has violated Rules 144 or 145 under the Securities Act, or Sections 13(d), 13(g) or 16 of the Exchange Act or the rules adopted by the SEC thereunder. Seller understands that this Plan in no way alters his obligations and responsibilities under Section 16, including those prohibitions against short swing profits.
5. Seller understands that there may be specific state law restrictions or limitations applicable to this Sales Plan. Seller acknowledges and agrees that JPMS has not provided Seller with any tax, accounting or legal advice. Seller understands that he should seek the advice of counsel regarding this Sales Plan and the various securities and tax law issues related thereto.
6. Seller agrees to notify JPMS immediately in the event of trading restrictions being imposed as the result of any lock up event restricting sales by affiliates, such as a stock offering or tender offer.
7. Seller represents and warrants that he is able to sell shares of Stock, as contemplated by this Sales Plan, in accordance with the Issuers insider trading policies and Seller has obtained the acknowledgement of the Issuer to enter into this Sales Plan. Seller further represents and warrants that the Stock is not subject to any liens, security interests or other impediments to transfer (except for limitations imposed by Rules 144 or 145, if applicable).
D. INDEMNIFICATION AND LIMITATION ON LIABILITY
1. Seller agrees to indemnify and hold harmless JPMS and its directors, officers, employees and affiliates from and against all claims, losses, damages and liabilities (including without limitation, any legal or other expenses reasonably incurred in connection with defending or investigating any such action or claim) arising out of or attributable to JPMSs actions taken or not taken in compliance with this Sales Plan or arising out of or attributable to any breach by Seller of this Sales Plan (including Sellers representations and warranties hereunder) or any violation by Seller of applicable laws or regulations. This indemnification shall survive termination of this Sales Plan. Notwithstanding the foregoing, Seller shall have no indemnification obligation to the extent any claims, losses, damages or liabilities are due to the gross negligence, recklessness or willful misconduct of JPMS or any other indemnified person.
2. Notwithstanding any other provision hereof, JPMS shall not be liable to Seller for: (a) special, indirect, punitive, exemplary or consequential damages, or incidental losses or damages of any kind, even if advised of the possibility of such losses or damages or if such losses or damages could have been reasonably foreseen; or (b) any failure to perform or to cease performance or any delay in performance that results from a cause or circumstance that is beyond its reasonable control, including but not limited to failure of electronic or mechanical equipment, strikes, failure of common carrier or utility systems, severe weather, market disruptions or other causes commonly known as acts of God.
E. SUSPENSION, TERMINATION AND AMENDMENT
1. This Sales Plan may be (a) suspended or terminated by Issuer at any time upon three business days prior written notice or (b) terminated by Seller at any time upon three business days prior written notice. Any such suspension or termination shall be made in good faith and not as a part of a plan or scheme to evade the prohibitions of Rule 10b5-1 or other applicable securities laws. JPMS will require certain representations from Seller and acknowledgement of Issuer as a condition to such suspension or termination.
2. This Sales Plan shall be suspended, or at JPMSs option, terminated, if JPMS receives notice, whether pursuant to Paragraph C.6 or otherwise, of the occurrence of any legal, contractual or regulatory restriction applicable to Seller or its affiliates, including without limitation, any restriction related to a merger or acquisition, or a stock offering requiring an affiliate lock-up, that would prohibit sales pursuant to this Sales Plan.
3. Seller may amend or modify this Sales Plan only upon the written consent of JPMS. Any such amendment or modification shall be made in good faith and not as a part of a plan or scheme to evade the prohibitions of Rule 10b5-1 or other applicable securities laws. Seller agrees that he will not amend or modify this Sales Plan at any time: (a) that a Blackout Period is in effect for Issuer or (b) that he is aware of any material non-public information about the Issuer and/or the Stock or of the actual or approximate beginning or
ending dates of a Blackout Period for Issuer. JPMS will require certain representations from Seller and acknowledgement of Issuer as a condition to such amendment or modification.
F. GENERAL
1. This Sales Plan shall be governed by and construed in accordance with the laws of the State of New York without reference to choice of law principles and may be modified or amended only by a writing signed by the parties hereto and acknowledged by the Issuer.
2. This Sales Plan shall be subject to all terms and conditions governing the Sellers Account, including the General Terms for Accounts and Services, the Asset Account Agreement and the JPMS Brokerage Agreement, including such provisions dealing with binding arbitration and waiving the right to litigate. This Sales Plan, together with the terms and conditions referenced in the preceding sentence, as well as any amendments or modifications made pursuant to this Sales Plan and those terms and conditions, represent the complete agreement between the parties on these subjects.
3. All notices to JPMS under this Sales Plan shall be given to JPMS by facsimile at (212) 464-1118 or by certified mail at J.P. Morgan Securities LLC., 270 Park Avenue, 5th Floor, New York, NY 10017, Attn: Richelle Mackiewicz.
4. Sellers rights and obligations under this Sales Plan may not be assigned or delegated without the written permission of JPMS.
5. This Sales Plan shall not be effective until executed by Seller and JPMS, and acknowledged by Issuer. This Sales Plan may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto were upon the same instrument.
Signature(s):
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/s/ Rodney Sacks |
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September 12, 2013 | ||
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Rodney Sacks |
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J.P. Morgan Securities LLC |
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By: |
/s/ Richelle Mackiewicz |
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September 12, 2013 | |
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Name: Richelle Mackiewicz |
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Title: Managing Director |
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Acknowledged: |
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Monster Beverage Corporation |
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By: |
/s/ Paul Dechary |
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September 12, 2013 | |
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Name: |
Paul Dechary |
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Title: |
Vice President and Senior Legal Counsel |
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Address: |
1 Monster Way, Corona, CA 92879 |
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Exhibit 2
Sales Plan
Sales Plan, adopted September 12, 2013 (the Sales Plan), between Hilton Schlosberg (Seller) and J.P. Morgan Securities LLC (JPMS). The purpose of this Sales Plan is to achieve the investment objectives of broader diversification of investments, while reducing the risk of over concentration in a particular investment.
RECITALS
WHEREAS, the Seller desires to establish this Sales Plan to sell common shares (the Stock) of Monster Beverage Corporation (the Issuer); and
WHEREAS, the Seller desires to sell a total of 200,000 shares of Stock (the Total Plan Shares), and
WHEREAS, the Seller desires to engage JPMS to effect sales of shares of Stock in accordance with the Sales Plan;
NOW, THEREFORE, the Seller and JPMS hereby agree as follows:
A. IMPLEMENTATION OF THE SALES PLAN
1. JPMS shall effect sales (each a Sale) of shares of Stock only on days on which the Nasdaq Global Select (the Exchange) is open and the Stock trades regular way on the Exchange, pursuant to the specific instructions specified on Schedule A.
2. Seller acknowledges and agrees that JPMS will handle the above order on a best efforts basis. In the event any limit prices of orders are away from the prevailing market prices at any time, there can be no assurance that such orders will be executed in whole or in part. Seller agrees that all orders may be partially executed and will not be treated as an all or none order. JPMS may effect sales of Stock which may coincide with sales of Stock by other accounts held with JPMS including, but not limited to, sales made pursuant to other sales plans with JPMS. In such instances, JPMS will make allocations in a manner believed by JPMS to be equitable to each client. JPMS may aggregate sales of Stock under the Sales Plan with sales of the Stock by other JPMS accounts.
3. Seller agrees to deposit 200,000 shares of Stock into the JPMorgan Chase Bank, N.A. Asset Custody Account or JPMS Margin Brokerage Account (Account). JPMS reserves the right to suspend or cancel this Sales Plan prior to the first Sale if the shares of Stock have not been deposited into an Account for any reason. JPMS shall withdraw Stock from the Sellers Account in order to effect sales of Stock under this Sales Plan. If on any day that sales are to be made under this Sales Plan the number of shares of Stock in the Sellers Account is less than the number of shares to be sold on such day, then JPMS shall notify Seller promptly of such deficiency, and Seller agrees to promptly deposit into the Account the number of shares of Stock necessary to eliminate such deficiency.
4. Seller agrees not to remove or transfer shares of Stock out of the Account, in any manner that would cause an alteration of, or deviation from, the terms of this Sales Plan.
5. To the extent that any Stock remains in the Sellers Account upon termination of this Sales Plan, JPMS agrees to return any such Stock for which JPMS had restrictions removed for the purpose of this Sales Plan promptly to the Issuers transfer agent for relegending to the extent that such Stock would then be subject to transfer restrictions in the hands of the Seller.
6. JPMS will deduct its reasonable and customary commissions from the proceeds of sales of Stock under this Sales Plan, together with any other expenses incurred by JPMS in connection with such sales.
7. The Total Plan Shares, the shares to be sold on a particular day, and the limit prices, shall be adjusted automatically on a proportionate basis to take into account any stock split, reverse stock split or stock dividend with respect to the Stock or any change in capitalization with respect to the Issuer that occurs during the term of this Sales Plan.
8. Subject to Paragraph F.5, this Sales Plan shall become effective on October 1, 2013 (Effective Date), and shall terminate on the earlier of (a) the close of business on December 12, 2013; (b) the date on which the Total Plan Shares have been sold; (c) the date this Sales Plan is terminated pursuant to Section E; (d) the date on which the unit of JPMS responsible for executing sales of Stock pursuant to this Sales Plan receives notice or otherwise becomes aware of (i) the closing of a tender or exchange offer with respect to the Stock or of a merger, acquisition, reorganization, recapitalization or comparable transaction affecting the securities of the Issuer as a result of which the Stock is to be exchanged or converted into shares of another company or for other consideration; (ii) the death or mental incapacity of the Seller; or (iii) the commencement or impending commencement of any proceedings in respect of or triggered by Sellers bankruptcy or insolvency.
9. Seller acknowledges and agrees that he does not have authority, influence or control over any sales of Stock effected by JPMS pursuant to this Sales Plan, and will not attempt to exercise any authority, influence or control over such sales. JPMS agrees not to seek advice from Seller with respect to the manner in which it effects sales under this Sales Plan. JPMS shall execute the trades in such a way as to attempt to minimize the negative price impact on the market and to attempt to maximize the prices obtained for the shares sold. JPMS may use its discretion in how to work the order to attempt to achieve the best execution above the minimum price per share, but at no time will the Seller communicate to JPMS any instructions on how to execute the order.
10. Seller will be notified of all transactions pursuant to customary trade confirmations that are provided in the normal course of business. In addition, JPMS will use reasonable efforts to notify both the Issuer and the Seller via email of each transaction pursuant to this Sales Plan no later than one business day after the trading date of such transaction.
11. Seller understands that JPMS may not be able to effect a sale due to a market disruption or a legal, regulatory or contractual restriction applicable to JPMS, an insufficient number of shares of Stock being in the Account, JPMS having received written confirmation from the Issuer that the Issuer has not complied with the reporting requirements of Section 13 or 15(d) of the Exchange Act that are a condition to complying with Rule 144 or 145 under the Securities Act of 1933 (the Securities Act), or a pending sale under this Sales Plan causing Seller to exceed any applicable volume limitations of Rule 144 or 145 under the Securities Act. If any sale cannot be executed as required by Paragraph A.1 due to: (a) Issuer not complying with the reporting requirements of Section 13 or 15(d) of the Exchange Act that are a condition to complying with Rule 144 or 145 under the Securities Act, JPMS will carry over any unsold shares to be sold in whole or in increments pursuant to the terms of Schedule A as and when the Issuer has provided written confirmation to JPMS that the Issuer is currently compliant with such reporting requirements; (b) the applicable volume limitations of Rule 144 or 145 under the Securities Act, then JPMS will recalculate the volume limitations on a weekly basis and carry over any unsold shares to be sold in whole or in increments pursuant to the terms of Schedule A as and when the volume limitations permit; or (c) a market disruption, a legal, regulatory or contractual restriction applicable to JPMS or any other such event, such sale shall be cancelled and shall not be effected pursuant to this Sales Plan, and, notwithstanding any language to the contrary herein, there shall be no carryover associated with such cancelled sale other than as set forth in Schedule A.
12. It is the intent of the parties that this Sales Plan comply with the requirements of Rule 10b5-1(c)(1)(i)(B) under the Exchange Act and this Sales Plan shall be interpreted to comply with the requirements of Rule 10b5-1(c).
13. In the event that it is necessary for JPMS to borrow or purchase shares of Stock in order to complete any sale on behalf of Seller pursuant to this sales Plan, Seller authorizes JPMS to borrow or purchase such shares and agrees to be responsible for any expense or loss which JPMS may sustain relating to such borrowing or purchase, including any expense or loss JPMS may sustain as a result of its inability to borrow or purchase shares of Stock to complete its delivery obligation.
B. RULES 144 AND 145
The following three paragraphs shall only apply to Sellers who are subject to Rules 144 and 145.
1. JPMS agrees to conduct all sales in accordance with the manner of sale requirement of Rule 144 or 145 under the Securities Act, and in no event shall JPMS effect any such sale if such sale would exceed the then applicable volume limitation under Rule 144, assuming JPMSs sales under this Sales Plan and those notified to JPMS pursuant to Paragraph B.3 are the only sales subject to that limitation. JPMS will be responsible for completing and filing on behalf of the Seller the required Form 144s that Seller shall execute and provide, as requested by JPMS. Seller understands and agrees that JPMS shall make one Form 144 filing at the start of each three-month period with the initial filing made on the date on which the first order to sell Stock is placed hereunder.
2. Each such Form 144 shall state in the Remarks section that the sales thereunder are being made pursuant to a previously adopted plan intended to comply with Rule 10b5-1(c), shall include the date the Seller adopted this Sales Plan and shall indicate that the representation regarding the Sellers knowledge of material information speaks as of the adoption date of this Sales Plan.
3. Seller agrees not to take any action that would cause the sales not to comply with Rule 144 or 145, and Seller agrees not to cause any person or entity with which Seller would be required to aggregate sales of Stock pursuant to paragraph (a)(2) or (e) of Rule 144 to take any action that would cause the sales not to comply with Rules 144 or 145. Seller may not enter into any other selling program or transaction without the prior consent of JPMS. Notwithstanding the foregoing, the Seller may without the prior written consent of JPMS enter into additional sales transactions starting November 12, 2013. Such additional sale transactions outside of the Sales Plan will only be conducted through JPMS and Seller will take all necessary steps so that such additional sales transactions will not cause the sales under this Sales Plan to no longer comply with Rule 144 or 145.
C. REPRESENTATIONS AND AGREEMENTS OF SELLER
1. Seller represents and warrants that as of the time of execution of, and entering into, this Sales Plan: (a) to the best of Sellers knowledge there is no blackout period (as defined in 17 C.F.R. Section 245.100(b), a Blackout Period) in effect for Issuer, (b) the Seller is not aware of material, nonpublic information with respect to the Issuer or any securities of the Issuer (including the Stock) or of the actual or approximate beginning or ending dates of a Blackout Period for Issuer, and (c) the Seller is entering into this Sales Plan in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b5-1 under the Exchange Act or other applicable securities laws.
2. At the time of Sellers execution of this Sales Plan, Seller has not entered into or altered a corresponding or hedging transaction with respect to the Total Plan Shares. Seller agrees not to enter into any such transaction while this Sales Plan remains in effect.
3. Seller agrees to make all filings, if any, required under and monitor his own compliance with Sections 13(d), 13(g) and 16 of the Exchange Act.
4. Except as provided in Paragraph B.1, Seller acknowledges and agrees that JPMS has no duty to determine whether Seller has violated Rules 144 or 145 under the Securities Act, or Sections 13(d), 13(g) or 16 of the Exchange Act or the rules adopted by the SEC thereunder. Seller understands that this Plan in no way alters his obligations and responsibilities under Section 16, including those prohibitions against short swing profits.
5. Seller understands that there may be specific state law restrictions or limitations applicable to this Sales Plan. Seller acknowledges and agrees that JPMS has not provided Seller with any tax, accounting or legal advice. Seller understands that he should seek the advice of counsel regarding this Sales Plan and the various securities and tax law issues related thereto.
6. Seller agrees to notify JPMS immediately in the event of trading restrictions being imposed as the result of any lock up event restricting sales by affiliates, such as a stock offering or tender offer.
7. Seller represents and warrants that he is able to sell shares of Stock, as contemplated by this Sales Plan, in accordance with the Issuers insider trading policies and Seller has obtained the acknowledgement of the Issuer to enter into this Sales Plan. Seller further represents and warrants that the Stock is not subject to any liens, security interests or other impediments to transfer (except for limitations imposed by Rules 144 or 145, if applicable).
D. INDEMNIFICATION AND LIMITATION ON LIABILITY
1. Seller agrees to indemnify and hold harmless JPMS and its directors, officers, employees and affiliates from and against all claims, losses, damages and liabilities (including without limitation, any legal or other expenses reasonably incurred in connection with defending or investigating any such action or claim) arising out of or attributable to JPMSs actions taken or not taken in compliance with this Sales Plan or arising out of or attributable to any breach by Seller of this Sales Plan (including Sellers representations and warranties hereunder) or any violation by Seller of applicable laws or regulations. This indemnification shall survive termination of this Sales Plan. Notwithstanding the foregoing, Seller shall have no indemnification obligation to the extent any claims, losses, damages or liabilities are due to the gross negligence, recklessness or willful misconduct of JPMS or any other indemnified person.
2. Notwithstanding any other provision hereof, JPMS shall not be liable to Seller for: (a) special, indirect, punitive, exemplary or consequential damages, or incidental losses or damages of any kind, even if advised of the possibility of such losses or damages or if such losses or damages could have been reasonably foreseen; or (b) any failure to perform or to cease performance or any delay in performance that results from a cause or circumstance that is beyond its reasonable control, including but not limited to failure of electronic or mechanical equipment, strikes, failure of common carrier or utility systems, severe weather, market disruptions or other causes commonly known as acts of God.
E. SUSPENSION, TERMINATION AND AMENDMENT
1. This Sales Plan may be (a) suspended or terminated by Issuer at any time upon three business days prior written notice or (b) terminated by Seller at any time upon three business days prior written notice. Any such suspension or termination shall be made in good faith and not as a part of a plan or scheme to evade the prohibitions of Rule 10b5-1 or other applicable securities laws. JPMS will require certain representations from Seller and acknowledgement of Issuer as a condition to such suspension or termination.
2. This Sales Plan shall be suspended, or at JPMSs option, terminated, if JPMS receives notice, whether pursuant to Paragraph C.6 or otherwise, of the occurrence of any legal, contractual or regulatory restriction applicable to Seller or its affiliates, including without limitation, any restriction related to a merger or acquisition, or a stock offering requiring an affiliate lock-up, that would prohibit sales pursuant to this Sales Plan.
3. Seller may amend or modify this Sales Plan only upon the written consent of JPMS. Any such amendment or modification shall be made in good faith and not as a part of a plan or scheme to evade the prohibitions of Rule 10b5-1 or other applicable securities laws. Seller agrees that he will not amend or modify this Sales Plan at any time: (a) that a Blackout Period is in effect for Issuer or (b) that he is aware of any material non-public information about the Issuer and/or the Stock or of the actual or approximate beginning or ending dates of a Blackout Period for Issuer. JPMS will require certain representations from Seller and acknowledgement of Issuer as a condition to such amendment or modification.
F. GENERAL
1. This Sales Plan shall be governed by and construed in accordance with the laws of the State of New York without reference to choice of law principles and may be modified or amended only by a writing signed by the parties hereto and acknowledged by the Issuer.
2. This Sales Plan shall be subject to all terms and conditions governing the Sellers Account, including the General Terms for Accounts and Services, the Asset Account Agreement and the JPMS Brokerage Agreement, including such provisions dealing with binding arbitration and waiving the right to litigate. This Sales Plan, together with the terms and conditions referenced in the preceding sentence, as well as any amendments or modifications made pursuant to this Sales Plan and those terms and conditions, represent the complete agreement between the parties on these subjects.
3. All notices to JPMS under this Sales Plan shall be given to JPMS by facsimile at (212) 464-1118 or by certified mail at J.P. Morgan Securities LLC., 270 Park Avenue, 5th Floor, New York, NY 10017, Attn: Richelle Mackiewicz.
4. Sellers rights and obligations under this Sales Plan may not be assigned or delegated without the written permission of JPMS.
5. This Sales Plan shall not be effective until executed by Seller and JPMS, and acknowledged by Issuer. This Sales Plan may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto were upon the same instrument.
Signature(s): |
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/s/ Hilton Schlosberg |
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September 12, 2013 | ||
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Hilton Schlosberg |
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J.P. Morgan Securities LLC |
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By: |
/s/ Richelle Mackiewicz |
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September 12, 2013 | |
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Name: Richelle Mackiewicz |
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Title: Managing Director |
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Acknowledged: |
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Monster Beverage Corporation |
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By: |
/s/ Paul Dechary |
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September 12, 2013 | |
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Name: |
Paul Dechary |
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Title: |
Vice President and Senior Legal Counsel |
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Address: |
1 Monster Way, Corona, CA 92879 |
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