COTT CORP /CN/
EMPLOYMENT AGREEMENT OF JOHN K. SHEPPARD
<DOCUMENT>
<TYPE>EX-10.7
<SEQUENCE>5
<FILENAME>t09239exv10w7.txt
<DESCRIPTION>EMPLOYMENT AGREEMENT OF JOHN K. SHEPPARD
<TEXT>
<PAGE>

                                                                    Exhibit 10.7


                           Cott Corporation Letterhead






December 21, 2001



Mr. John Sheppard
VIA FAX

RE:      Employment Offer

Dear John:

         We are pleased to extend you an offer of employment as Executive
Vice-President of Cott Corporation and President of its U.S. division, Cott
Beverages, Inc. You will devote your full-time efforts to performing the duties
associated with these positions and any other duties as may be assigned to you
from time to time. You will report to the President and CEO of Cott Corporation,
Frank Weise. Your office will be located in Tampa, Florida with a start date of
January 14, 2002.

         You will be paid bi-weekly an annualized salary of $325,000. You will
be entitled to four weeks vacation each year. You will also be entitled to
participate in all benefit programs on the same terms as offered to other
executives of Cott Beverages, Inc., including but not limited to a car
allowance, medical, dental, disability and life insurance.

         In addition, you will be entitled to 150,000 options of Cott
Corporation common stock in accordance with, and as governed by, The Restated
1986 Cott Corporation Common Share Option Plan. The options shall vest in
accordance with the following schedule: 30% on the first anniversary, 30% on the
second anniversary and 40% on the 3rd anniversary of the grant.

         You will be entitled to participate in the Cott Incentive Bonus
Program, which is a discretionary annual bonus program. Your target bonus will
be 100% of your current base salary and will be subject to achieving the
objectives as determined and evaluated by the CEO and Board of Directors. For
the first year, that being fiscal 2002, Cott will guarantee your bonus payout at
100% or $325,000 payable at the same time as all bonus participants.

         You will be entitled to a relocation package which includes
reimbursement of out-of-pocket realtor and legal fees and moving expenses, as
well as two trips for you and your family to visit the Tampa area. You will also
receive a relocation bonus equivalent to two months base salary to be paid
within one month of your start date.

<PAGE>

         You will receive two years of severance pay equivalent to your base
salary and base bonus in the event your employment is terminated by the Company
without cause. As a condition of your employment and in order to receive any
severance or bonus incentive pay, you agree to execute and abide by a
confidentially, non-solicitation and non-competition agreement which will apply
during the term of your employment and for two years after your separation from
employment for any reason.

         We will incorporate the terms of this offer as well as any other
appropriate terms into an Executive Employment Agreement to be executed by you
and the Company within 60 days from your start date.

         We are very pleased and excited about your joining us at Cott
Beverages. Please indicate your acceptance of this offer by signing the
acknowledgement below.



                                                 Yours truly,

                                                 /s/ Frank Weise III
                                                 -------------------------------
                                                 Frank Weise III


Agreed to and accepted:

/s/ John Sheppard
-------------------------------
John Sheppard

</TEXT>
</DOCUMENT>
