Document:

Exhibit

Exhibit 10.2

ADIENT PLC
RESTRICTED SHARES OR RESTRICTED SHARE UNIT AWARD

Grant - Terms for Restricted Shares and Restricted Share Units

	
		
	Participant Name:
	 

	Grant Date:
	 

	Number of Restricted Shares:
	 

	Number of Restricted Share Units:
	 

	Restriction Period:
	 

	Units Settled in Cash (check box if applies; see Section 3(b)):
	 ̈

	Dividend Equivalents Settled in Cash (check box if applies):
	 ̈

	Dividends or Dividend Equivalents Paid Currently (check box if applies):
	 ̈

Adient plc has adopted the 2016 Omnibus Incentive Plan to permit awards of restricted shares or restricted share units to be made to certain key employees of the Company or any Affiliate.  The Company desires to provide incentives and potential rewards for future performance by the employee by providing the Participant with a means to acquire or to increase his or her proprietary interest in the Company's success.

Definitions.  Capitalized terms used in this Award have the following meanings:

		
	(a)
	“Award” means this grant of Restricted Shares and/or Restricted Share Units.

		
	(b)
	“Award Notice” means an Award notification (if any) delivered to the Participant in connection with this Award.

		
	(c)
	“Company” means Adient plc or any successor thereto.

		
	(d)
	“Inimical Conduct” means any of the following as determined by the Administrator in its sole discretion: (i) any act or omission that is inimical to the best interests of the Company or any Affiliate as determined by the Administrator, (ii) violation of any employment, non-compete, confidentiality or other agreement in effect with the Company or any Affiliate, or the Company’s or an Affiliate’s code of ethics, as then in effect, (iii) conduct rising to the level of gross negligence or willful misconduct in the course of employment with the Company or an Affiliate, (iv) commission of an act of dishonesty or disloyalty involving the Company or an Affiliate, or taking any action which damages or negatively reflects on the reputation of the Company or an Affiliate, (v) failure to comply with applicable laws relating to trade secrets, confidential information or unfair competition or a violation of any other federal, state or local law in connection with the Participant’s employment or service, or (vi) breach of any fiduciary duty to the Company or an Affiliate.

		
	(e)
	“Participant” means the individual selected to receive this Award.

		
	(f)
	“Plan” means the Adient plc 2016 Omnibus Incentive Plan, as may be amended from time to time.

		
	(g)
	“Restriction Period” means the length of time indicated above or in any Award Notice during which the Participant cannot sell, transfer, pledge, assign or otherwise encumber the Restricted Shares or Restricted Share Units granted under this Award.

		
	(h)
	“Restricted Shares” means Shares that are subject to a risk of forfeiture and the Restriction Period.

		
	(i)
	“Restricted Share Unit” means the right to receive a payment, in cash or Shares, equal to the Fair Market Value of one Share, that is subject to a risk of forfeiture and the Restriction Period.

		
	(j)
	“Retirement” means a termination of employment from the Company and its Affiliates on or after age 60, other than a termination by the Company or an Affiliate for Cause.

		
	(k)
	“Share” means an ordinary share of the Company.

Other capitalized terms used in this Award have the meanings given in the Plan.

Exhibit 10.2

The parties agree as follows:

1.Grant of Award.  The Company hereby grants to the Participant an award of Restricted Shares or Restricted Share Units, as specified above or in any Award Notice, on the date and with respect to the number of Shares or Units specified above or in any Award Notice.  The Award is subject to the terms and conditions set forth herein and in the Plan, a copy of which has been delivered to the Participant, and which is made a part of this Award.

2.Restricted Shares.  If the Award is in the form of Restricted Shares, the Shares are subject to the following terms:

		
	a.
	Restriction Period.  The Company will hold the Shares in escrow or via an independent trust or nominee for the Restriction Period.  During this period, the Shares shall be subject to forfeiture as provided in Section 4.

		
	b.
	Removal of Restrictions.  Subject to any applicable deferral election under the Adient US LLC Executive Deferred Compensation Plan (or any successor plan) and to Section 4 below, Shares that have not been forfeited shall become available to the Participant after the last day of the Restriction Period upon payment in full of all taxes due with respect to such Shares. 

		
	c.
	Voting Rights.  During the Restriction Period, the Participant may exercise full voting rights with respect to the Shares.

		
	d.
	Dividends and Other Distributions.  Any cash dividends or other distributions paid or delivered with respect to Restricted Shares for which the record date occurs on or before the last day of the Restriction Period will be credited to a bookkeeping account for the benefit of the Participant unless it is indicated above or in any Award Notice that such cash dividends or other distributions shall be paid currently.  To the extent such account is credited, it will be converted into and settled in additional Shares issued under the Plan at the end of the applicable Restriction Period unless it is indicated above or in any Award Notice that the account will be paid to the Participant in cash, in which case it will be paid in cash at the end of the applicable Restriction Period.  Prior to the end of the Restriction Period, any account credited pursuant to this paragraph will be subject to the same terms and conditions (including risk of forfeiture) as the Restricted Shares to which the dividends or other distributions relate.  

3.Restricted Share Units.  If the Award is in the form of Restricted Share Units, the Restricted Share Units are subject to the following terms:

		
	a.
	Restriction Period.  During the Restriction Period, the Restricted Share Units shall be subject to forfeiture as provided in Section 4.

		
	b.
	Settlement of Restricted Share Units.  Subject to any applicable deferral election under the Adient US LLC Executive Deferred Compensation Plan (or any successor plan thereto) and to Section 4 below, the Restricted Share Units shall be settled by payment of one Share per Restricted Share Unit unless it is indicated above or in any Award Notice that the Restricted Share Units will be settled through payment of cash, in which case the Restricted Share Units will be settled through payment of cash equal to the Fair Market Value of one Share per Restricted Share Unit, in each case as soon as practicable after the last day of the Restriction Period and upon payment in full of all taxes due with respect to such Restricted Share Units.  Notwithstanding the foregoing, if this Award provides that it will be settled in cash, but the Company has satisfied all registration, 

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Exhibit 10.2

qualification or other legal requirements necessary to permit the settlement of the Restricted Share Units in Shares in the Participant’s jurisdiction without adverse legal, tax, financial or accounting consequences to the Company or its Affiliates, then such Award will instead be settled in Shares and the Participant will have no right to receive cash.  Notwithstanding the foregoing, if the Participant is a specified employee within the meaning of Code Section 409A and the Restriction Period lapses due to a termination of employment (other than for death), then the vested Restricted Share Units will be settled as soon as practicable six months after the Participant’s termination to the extent required to comply with Code Section 409A. 

		
	c.
	Dividend Equivalent Units.  Any cash dividends or other distributions paid or delivered with respect to the Shares for which the record date occurs on or before the last day of the Restriction Period will result in a credit to a bookkeeping account for the benefit of the Participant unless it is indicated above or in any Award Notice that such cash dividends or other distributions shall result in the current payment of a dividend equivalent.  Any such credit or dividend equivalent will be equal to the dividends or other distributions that would have been paid with respect to the Shares subject to the Restricted Share Units had such Shares been outstanding.  To the extent a bookkeeping account is credited pursuant to this paragraph, it will be converted into and settled in additional Shares issued under the Plan at the end of the applicable Restriction Period unless it is indicated above or in any Award Notice that the account will be paid to the Participant in cash, in which case it will be paid in cash at the end of the applicable Restriction Period.  Prior to the end of the Restriction Period, any account credited pursuant to this paragraph will be subject to the same terms and conditions (including risk of forfeiture) as the Restricted Share Units to which the dividends or other distributions relate.  

4.Termination of Employment - Risk of Forfeiture.

		
	a.
	Retirement.  If the Participant’s employment with the Company and its Affiliates terminates after the first anniversary of the Grant Date due to Retirement, then all of the Participant’s Restricted Share Units awards will continue to vest and otherwise be subject to the terms and conditions of this Agreement as if the Participant’s employment had not terminated. If the Participant, after his or her Retirement, engages in Inimical Conduct, obtains Full-Time Employment, or acts as an employee (whether full-time or otherwise), consultant or member of a board of a Competitor, as determined by the Administrator, any Restricted Share Units that have not yet vested or been settled shall automatically be forfeited as of the date of the Administrator’s determination. The Participant shall provide such information or documentation as the Administrator reasonably determines is necessary to confirm whether the Participant has engaged in any prohibited activity as described in the preceding sentence.  For purposes hereof:

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Exhibit 10.2

	
				
	 
	i.
	 
	“Competing Product or Service” means any product or service that is sold in competition with, or, as of the date of the Participant’s Retirement, is being developed and that will compete with, a product or service developed, manufactured, or sold by the Company or any of its Affiliates. For purposes of this Section 4.a., Competing Products or Services as to the Participant are limited to products and/or services with respect to which the Participant participated in the development, planning, testing, sale, marketing or evaluation on behalf of the Company or any Affiliate  during any part of the Participant’s employment with the Company or an Affiliate, or after the termination of the Participant’s employment, during any part of the 24 months preceding the termination of the Participant’s employment with the Company and its Affiliates, or for which the Participant supervised one or more Company or Affiliate employees, units, divisions or departments in doing so.

	 
	 
	 
	 

	 
	ii.
	 
	“Competitor” means an individual, business or any other entity or enterprise engaged or having publicly announced its intent to engage in the sale or marketing of any Competing Product or Service.

	 
	 
	 
	 

	 
	iii.
	 
	“Full-Time Employment” means working thirty-five (35) or more hours per week.

		
	b.
	Death.  If the Participant’s employment with the Company and its Affiliates terminates because of death at a time when the Participant could not have been terminated for Cause, then, effective as of the date the Company determines the Participant’s employment terminated due to death (provided such determination is made no more than 75 days after the date of death), any remaining Restriction Period shall automatically lapse.  If the Participant dies after Retirement while this Award is still subject to the Restriction Period, then, effective as of the date of the Participant’s death (provided the Company receives notice of the Participant’s death within 75 days), any remaining Restriction Period shall automatically lapse as of the date of death.  The Company shall have no liability to any person for any taxes, penalties or interest incurred by any person due to the Company not receiving notice of the Participant’s death within 75 days.

		
	c.
	Disability.  If the Participant’s employment with the Company and its Affiliates terminates because of Disability at a time when the Participant could not have been terminated for Cause, then the Participant shall become vested in (and any remaining Restriction Period shall automatically lapse with respect to) the Restricted Shares or Restricted Share Units subject to this Award as of the date such employment terminates.

		
	d.
	Other Termination.  If the Participant’s employment terminates for any reason not described above, then any Restricted Shares or any Restricted Share Units (and all deferred dividends paid or credited thereon) still subject to the Restriction Period as of the date of such termination of employment shall automatically be forfeited and returned to the Company.  In the event the Participant’s employment terminates due to the Participant’s involuntary termination of employment by the Company or an Affiliate for other than Cause, the Administrator may waive the automatic forfeiture of any or all such Restricted Shares or Restricted Share Units (and all deferred dividends or other distribution paid or credited thereon) and may add such new restrictions to such Restricted Shares or Restricted Share Units as it deems appropriate.  The Company may suspend payment or delivery of Shares (without liability for interest thereon) pending the Administrator’s determination of whether the Participant’s employment was or should have been terminated for Cause or whether the Participant has engaged in Inimical Conduct.

5.Withholding.  The Participant agrees to remit to the Company any foreign, U.S. federal, state and/or local taxes (including the Participant’s FICA obligation) required by law to be withheld with respect to the issuance of Shares under this Award, the vesting of this Award or the payment of cash under this Award.  Unless the Company otherwise determines, the Company will satisfy any withholding obligations in connection with this 

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Exhibit 10.2

Award by withholding from cash or Shares otherwise payable or issuable under this Award in the amount needed to satisfy any withholding obligations; provided that, in the case of Shares, the amount withheld may not exceed the Participant’s minimum statutory tax withholding obligations associated with the transaction to the extent needed for the Company and its Affiliates to avoid an accounting charge until Accounting Standards Update 2016-09 applies to the Company, after which time the amount withheld may not exceed the total maximum statutory tax rates associated with the transaction.  Alternatively, the Company may require the Participant to pay to the Company, in cash, promptly on demand, amounts sufficient to satisfy such tax obligations or make other arrangements satisfactory to the Company regarding the payment to the Company of the aggregate amount of any such tax obligations, or the Company may withhold from cash or other property, payable or issuable to the Participant or from Shares no longer subject to restrictions in the amount needed to satisfy any withholding obligations.

6.No Claim for Forfeiture.  Neither the Award nor any benefit accruing to the Participant from the Award will be considered to be part of the Participant’s normal or expected compensation or salary for any purposes, including, but not limited to, calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments.  In no event may the Award or any benefit accruing to the Participant from the Award be considered as compensation for, or relating in any way to, past services for the Company or any Affiliate.  In consideration of the Award, no claim or entitlement to compensation or damages shall arise from forfeiture of the Award resulting from termination of the Participant’s employment by the Company or any Affiliate (for any reason whatsoever and whether or not in breach of local labor laws) and the Participant irrevocably releases the Company and its Affiliates from any such claim that may arise.  If, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen, then, by accepting the grant, the Participant shall have been deemed irrevocably to have waived any entitlement to pursue such claim.  

7.Electronic Delivery.  The Company or its Affiliates may, in its or their sole discretion, decide to deliver any documents related to current or future participation in the Plan or related to this Award by electronic means.  The Participant hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company. The Participant hereby agrees that all on-line acknowledgements shall have the same force and effect as a written signature.

8.Securities Compliance.  The Company may place a legend or legends upon the certificates for Shares issued under the Plan and may issue “stop transfer” instructions to its transfer agent in respect of such Shares as it determines to be necessary or appropriate to (a) prevent a violation of, or to obtain an exemption from, the registration requirements of the Securities Act of 1933, as amended, applicable state securities laws or other legal requirements, or (b) implement the provisions of the Plan, this Award or any other agreement between the Company and the Participant with respect to such Shares.

9.Successors.  All obligations of the Company under this Award shall be binding on any successor to the Company.  The terms of this Award and the Plan shall be binding upon and inure to the benefit of the Participant, and his or her heirs, executors, administrators or legal representatives.

10.Legal Compliance.  The granting of this Award and the issuance of Shares under this Award shall be subject to all applicable laws, rules, and regulations and to such approvals by any governmental agencies or national securities exchanges as may be required.

11.Governing Law; Arbitration.  This Award and the rights and obligations hereunder shall be governed by and construed in accordance with, except to the extent preempted by other applicable laws (a) with respect to the corporate law requirements applicable to the Company, the validity and authorization of the issuance of Shares under the Plan and similar matters, the internal laws of Ireland (without reference to conflict of law principles 

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Exhibit 10.2

thereof) and (b) with respect to all other matters relating to the Plan and Awards, the internal laws of the State of New York (without reference to conflict of law principles thereof). Arbitration will be conducted, to the extent applicable, per the provisions in the Plan.

12.Data Privacy and Sharing.  As a condition of the granting of the Award, the Participant acknowledges and agrees that it is necessary for some of the Participant’s personal identifiable information to be provided to certain employees of the Company, the third party data processor that administers the Plan and the Company’s designated third party broker in the United States.  These transfers will be made pursuant to a contract that requires the processor to provide adequate levels of protection for data privacy and security interests in accordance with the EU Data Privacy Directive 95/46 EC and the implementing legislation of the Participant’s home country.  By accepting the Award, the Participant acknowledges having been informed of the processing of the Participant’s personal identifiable information described in the preceding paragraph and consents to the Company collecting and transferring to the Company's Total Rewards Department or Shareholder Services Department, and its independent benefit plan administrator and third party broker, the Participant’s personal data that are necessary to administer the Award and the Plan.  The Participant understands that his or her personal information may be transferred, processed and stored outside of the Participant’s home country in a country that may not have the same data protection laws as his or her home country, for the purposes mentioned in this Award.  

This Award, including any Award Notice delivered to the Participant and any other documents expressly referenced in this Award contain all of the provisions applicable to the Award and no other statements, documents or practices may modify, waive or alter such provisions unless expressly set forth in writing, signed by an authorized officer of the Company and delivered to the Participant.

The Company has caused this Award to be executed by one of its authorized officers as of the date of grant.

ADIENT PLC

[Placeholder for signature]

Neil E. Marchuk
Executive Vice President - Human Resources

- 6 -Exhibit 4.1

 

PERFORMANCE SHARE UNIT PLAN FOR DESIGNATED LEADERS OF
 CGI GROUP INC. AND ITS SUBSIDIARIES

 

1.                                      Definitions

 

For the purposes hereof and unless the context otherwise requires:

 

1.1                               “Award” means the PSU grant made to a Participant under the Plan on an Award Date, evidenced by an Award Letter;

 

1.2                               “Award Date” means the date on which an Award is made, as set forth in the Award Letter;

 

1.3                               “Award Letter” has the meaning given to that expression in Section 5 hereof;

 

1.4                               “Blackout Period” means any period during which a policy of the Company prevents a Participant from trading in securities of the Company;

 

1.5                               “Board” means the Board of Directors of the Company;

 

1.6                               “Business Day” means a day of the week other than a Saturday, Sunday or a legal holiday recognized as such either in the Province of Quebec, or in the place where the concerned Participant is normally resident;

 

1.7                               “CGI Fiscal Year” means the 12-month financial reporting period of the Company;

 

1.8                               “CGI Shares” means the Class A subordinate voting shares in the share capital of the Company;

 

1.9                               “Committee” means the Human Resources Committee of the Board;

 

1.10                        “Company” means CGI Group Inc. and any successor corporation thereto;

 

1.11                        “Control Person” has the meaning given to that expression in the Securities Act (Québec);

 

1.12                        “Determination Date” has the meaning given to that expression in Section 6 hereof;

 

1.13                        “Earning Period” has the meaning given to that expression in Section 6 hereof;

 

1.14                        “Employee” means any regular employee of the Company or of any of its Subsidiaries;

 

1.15                        “Estate” has the meaning given to that expression in Paragraph 8.2 hereof;

 

 

1.16                        “Expiry Date” means, in respect of an Award, the Business Day preceding the last day of the calendar year which is three years following the end of the CGI Fiscal Year during which the Award is made;

 

1.17                        “Participant” means any Employee to whom an Award is made by the Board;

 

1.18                        “Plan” means this Performance Share Unit Plan for the Designated Leaders of the Company and its Subsidiaries, including any Annex thereto;

 

1.19                        “Plan Trustee” means such persons or entities as may be designated from time to time by the Company;

 

1.20                        “PSU” means a performance share unit of the Company which represents the right of a Participant, once such unit is earned and has vested in accordance with the Award Letter and this Plan, to receive one CGI Share for each such performance share unit;

 

1.21                        To “Retire” or “Retirement” means that the Participant has ceased to be a regular Employee, provided that:

 

·                                          the Participant is either no longer gainfully employed; or

 

·                                          following the cessation of employment, the Participant is gainfully employed and pursues activities in a business that is not a direct competitor of the Company or one of its Subsidiaries; and

 

·                                          the Founder and Executive Chairman of the Board, the President and Chief Executive Officer or the most senior officer of the Company responsible for Human Resources confirms in writing the Participant’s retirement;

 

1.22                        “Settlement Date” means the date upon which the Participant’s earned and vested PSUs are settled;

 

1.23                        “Subsidiary” means an entity that: (i) is a “related entity” of the Company within the meaning of National Instrument 45-106, as adopted by the Canadian Securities Administrators and as amended from time to time; and (ii) is designated as a “Subsidiary” by the Founder and Chairman of the Board of the Company or the President and Chief Executive Officer of the Company;

 

1.24                        “Tax-Related Items” means any federal, state, provincial, local and/or foreign tax items, including income tax, social insurance, payroll tax, fringe benefits tax, payment on account or other tax-related items, related to participation in the Plan and legally applicable to Participant (including any employer liability for such items that the Company has determined to be applicable to Participant);

 

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1.25                        “Vesting Date” means, in respect of an Award, the date when the Award is fully and completely vested as determined by the Board in accordance with Section 7; and

 

1.26                        “Vesting Schedule” means the schedule established in an Award Letter under which an Award vests in respect of a Participant, provided a Participant will be required to remain an Employee continuously from the Award Date through the relevant Vesting Date, except as otherwise provided under Section 8.

 

2.                                      Purpose of the Plan

 

The Plan has been established to assist the Company in attracting, retaining and motivating Employees and to promote the success of the Company’s business and align the interests of the Employees with those of the Company shareholders.

 

3.                                      Administration

 

The Plan is governed by the Board. The Committee makes recommendations to the Board in relation to Awards granted under the Plan. The Board has the ultimate and sole power and authority to (i) approve Awards granted under the Plan, (ii) determine the terms and conditions of Awards granted under the Plan, (iii) prescribe, amend and rescind rules and regulations relating to the Plan and establish sub-plans under the Plan for the purpose of complying or facilitating compliance with applicable laws or customary business practice or qualifying for specific tax treatment, (iv) interpret the terms of the Plan and Awards that have been granted under the Plan and (v) exercise such powers and perform such acts as the Board deems necessary or desirable to promote the best interests of the Company which are not in conflict with the provisions of the Plan. The determinations, designations, decisions and interpretations of the Board are binding and final.  Management of the Company is responsible for the day-to-day administration of the Plan.

 

4.                                      Grant of Awards

 

The Board shall determine the number of PSUs granted under an Award to a Participant. The Board shall further establish at the time of each grant of an Award, within the restrictions set forth in the Plan, the Award Date, the Vesting Date, the Vesting Schedule, any performance objectives that must be attained for the Award to be earned, and other particulars applicable to an Award granted hereunder. The Committee may make recommendations to the Board in respect of Awards.

 

5.                                      Award Letter

 

Upon the grant of an Award, the Company shall deliver to the Participant, a letter containing the terms and conditions of the Award (the “Award Letter”).

 

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6.                                      Earning Period

 

The PSUs granted to a Participant may be subject to one or more performance objectives.  Such performance objectives and the period of time over which they are calculated (the “Earning Period”), if any, shall be determined by the Board in its sole discretion.  The level of attainment of the performance objectives shall be determined on the date determined by the Board in its sole discretion (the “Determination Date”).  Upon the Determination Date, the percentage of PSUs identified in the Award Letter as corresponding to the level of attainment of the performance objectives shall become earned and eligible to vest in accordance with the Vesting Schedule, subject to the terms and conditions of the applicable Award Letter and this Plan. The Company shall confirm to the Participant the number of PSUs earned by such Participant following the relevant Determination Date. All PSUs subject to one or more performance objectives not earned in accordance with this Section shall expire and the Participant shall not have any rights or entitlements whatsoever in respect of any such PSUs. The Committee may make recommendations to the Board in respect of performance objectives and their level of attainment.

 

7.                                      Vesting Schedule and Vesting Date

 

Subject to the provisions of Section 8, the Vesting Schedule and the Vesting Date of an Award will be determined by the Board at the time of the grant, provided that such Vesting Schedule or Vesting Date may not extend beyond the Expiry Date.

 

8.                                      Early Expiry of Awards

 

Unless otherwise determined by the Board on or after the Award Date, Awards, or part thereof, shall expire, as the case may be, in the following events and manner:

 

8.1                               If the employment of a Participant terminates for any reason other than those contemplated under Paragraphs 8.2 and 8.3 on or before the Vesting Date of an applicable Award, any unvested PSUs (including, for greater certainty, any earned or unearned PSUs) outstanding on the Participant’s termination of employment shall expire on such date and the Participant shall not have any rights or entitlements whatsoever in respect of any such PSUs.

 

8.2                               Upon the death of a Participant, any PSUs that have been earned as of the applicable Determination Date for such Award in accordance with Section 6 but remain unvested shall vest automatically upon the Participant’s death, and the estate, succession, heirs or legal representatives of a deceased Participant (hereafter referred to as the “Estate”) shall receive, in accordance with the provisions of the Award Letter and of Section 13, as soon as practicable after the date of death, but no later than the end of the calendar year following the calendar year in which the Participant died, the number of CGI Shares represented by such earned and vested PSUs of such Participant.  Any unearned PSUs outstanding at 

 

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the time of the Participant’s death shall expire on such date and the Estate shall not have any rights or entitlements whatsoever in respect of any such PSUs.

 

8.3                               If a Participant Retires, any PSUs that have been earned as of the applicable Determination Date for such Award in accordance with Section 6 but remain unvested shall vest automatically upon the Participant’s date of Retirement and the Participant shall receive, in accordance with the provisions of the Award Letter and of Section 13, within ninety days (90) days following the Participant’s date of Retirement, the number of CGI Shares represented by such earned and vested PSUs of such Participant.  Any unearned PSUs outstanding at the time of the Participant’s Retirement shall expire on such date and the Participant shall not have any rights or entitlements whatsoever in respect of any such PSUs.

 

9.                                      Purchase of CGI Shares in the Open Market

 

9.1                               Within ninety (90) days following an Award Date or such later date determined by the Company, a Plan Trustee, upon notice and receipt of sufficient funds from the Company or Subsidiary, as applicable, shall cause to be purchased in the open market such number of CGI Shares as is equal to the lesser of (i) the number of PSUs comprised in the Award, and (ii) the number of CGI Shares required to be purchased by a Plan Trustee to ensure that the aggregate number of CGI Shares held by a Plan Trustee is not less than the total number of PSUs then outstanding in respect of such Plan Trustee’s aggregate Participants.

 

9.2                               Each Plan Trustee shall hold the CGI Shares in trust for the purposes of the Plan and in accordance with the terms of the trust agreement between the Company or its Subsidiary, as applicable, and such Plan Trustee as may be amended, supplemented or replaced from time to time, and shall distribute the CGI Shares to Participants in accordance with the terms of the Plan.

 

9.3                               No Participant or other person shall have any claim or right to receive CGI Shares on account of PSUs credited to the applicable trust pursuant to the Plan until the Settlement Date.  Under no circumstances shall PSUs entitle a Participant to exercise any voting rights or other rights attaching to the ownership of CGI Shares so long as the CGI Shares remain in the possession of a Plan Trustee.  Except in accordance with the terms of its trust agreement or as otherwise agreed with the Company, a Plan Trustee shall not vote the CGI shares held in trust for the purposes of the Plan.

 

9.4                               The Company may establish or cause to be established one or more trusts under the Plan as may be required to meet applicable law or for any other purpose.  Notwithstanding anything to the contrary under this Plan, neither the Company nor any of its Subsidiaries shall be required to fund a trust for purposes of settling any Awards granted under the Plan, if the funding of such trust could result in a breach of applicable law, result in negative tax consequences for the Company, any of its Subsidiaries or any Participant, or be administratively burdensome.

 

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10.                               Settlement of PSUs

 

10.1                        Except as otherwise provided in Section 8, or in the applicable Award Letter, PSUs earned in accordance with Section 6 and vested in accordance with Section 7 shall be settled within thirty (30) days following the Vesting Date, provided however that (i) if the Participant is not a Control Person and the Settlement Date occurs during a Blackout Period, the Settlement Date will be automatically deferred to the first Business Day immediately following the last day of the Blackout Period, provided such deferral would not otherwise violate any applicable law as determined by the Company in its sole discretion, and (ii) if the Participant is a Control Person and the Settlement Date occurs during a Blackout Period, the Settlement Date will be automatically deferred to the first Business Day immediately following the later of (A) the last day of the Blackout Period and (B) if applicable, the expiry of any regulatory notice period (including pursuant to any required SEDAR filing on Form 45-102F1) required to be filed by the Control Person in respect of the sale of the underlying CGI Shares, provided such deferral would not otherwise violate any applicable law as determined by the Company in its sole discretion. Notwithstanding (i) and (ii) above, no Settlement Date can be deferred beyond the Expiry Date of the PSUs.  Accordingly, all vested PSUs not settled before the Expiry Date will be automatically settled on the Expiry Date.

 

10.2                        Notwithstanding any provision in the Plan or any Award Letter to the contrary, the Company may, in its sole discretion, settle an Award (or any portion thereof) in the form of a cash payment to the extent settlement in CGI Shares (i) could result in a breach of applicable law, (ii) could result in negative tax consequences for the Company, any of its Subsidiaries or any Participant, (iii) would require the Participant, the Company or its applicable Subsidiary to obtain the approval of any governmental and/or regulatory body in the Participant’s country of residence (or country of employment, if different), or (iv) is administratively burdensome as determined by the Board in its sole discretion.

 

11.                               Assignment

 

The rights of a Participant under the Plan and the Award Letter may not be assigned, pledged or encumbered nor any interest therein other than by will or under the law of succession.

 

12.                               Effect of any Amendment to the Share Capital

 

In the event of any change in the number of outstanding CGI Shares following any share dividend, subdivision, reorganization, merger, consolidation, combination or exchange of shares or any other similar corporate change, the Board shall make an equitable adjustment to the number of PSUs held in the record in respect to a Participant or to the 

 

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class of shares underlying the PSUs.  Such adjustment shall be final and binding for the purposes of the Plan.

 

13.                               Tax-Related Items

 

13.1                        Regardless of any action taken by the Company or a Subsidiary with respect to the Tax-Related Items, the Participant is ultimately responsible for the Tax-Related Items.  The Company does not make any representation or undertaking regarding the treatment of any Award granted under the Plan and any Tax-Related Items and does not commit to and is under no obligation to structure the Plan or any Award granted under the Plan to reduce or eliminate a Participant’s liability for Tax-Related Items or achieve any particular tax result.

 

13.2                        Prior to distributing CGI Shares from the Plan to a Participant, a Plan Trustee shall sell in the open market, on behalf of and for the account of the Participant, a sufficient number of the CGI Shares underlying the Participant’s Award so that the proceeds of the sale of the CGI Shares are sufficient to satisfy any withholding obligation for Tax-Related Items, and remit the balance of the CGI Shares underlying the Participant’s Award to the Participant.  In determining the number of CGI Shares to be sold to satisfy the withholding obligation for Tax-Related Items, minimum or maximum withholding rates for the Participant’s jurisdiction may be considered.  In the event a minimum rate is utilized, the Participant may be required to pay additional Tax-Related Items directly to the relevant tax authority.  In the event a maximum rate is utilized such that more CGI Shares than needed to satisfy the withholding obligation for Tax-Related Items are sold, the Participant may receive a refund in cash, either from the Company or the relevant Subsidiary (or, if permitted by applicable law, through seeking a refund from the relevant tax authority) and the Participant will not have any entitlement to the equivalent amount in CGI Shares.

 

13.3                        The Company or any Subsidiary, as appropriate, shall have the authority and the right to take such other action as may be necessary in the opinion of the Company or the relevant Subsidiary to satisfy the Company’s or a Subsidiary’s withholding obligation for Tax-Related Items, including the right to withhold the Tax-Related Items from Participant’s salary or other cash compensation paid to Participant by the Company or one of its Subsidiaries.

 

14.                               Record Keeping

 

The Company shall cause individual records to be maintained for each Participant which shall record the number of PSUs awarded, earned, vested and settled from time to time.

 

15.                               Downward Fluctuation in the Price of Shares

 

No amount will be paid to, or in respect of, a Participant under the Plan, or pursuant to any other arrangement, to compensate a Participant for a downward fluctuation in the 

 

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price of CGI Shares, nor will any other form of benefit be conferred upon, or in respect of, a Participant for such purpose.

 

16.                               Expenses

 

All expenses relating to the administration of the Plan shall be borne by the Company. The Company will not be liable for any subsequent expenses or costs once PSUs, if any, have been settled for the benefit of a Participant. In addition, brokerage fees or commissions incurred by a Plan Trustee or any other third party administrator mandated by the Company in connection with the sale of CGI Shares made on behalf and for the account of a Participant, including sales made to satisfy any withholding obligation for Tax-Related Items pursuant to Section 13, shall be borne by the Participant and shall be deducted from the proceeds of such sale.

 

17.                               No Acquired Rights

 

The Plan and a Participant’s participation in the Plan do not generate any acquired rights in favor of any Participant, and do not constitute an express or implied term of nor in any manner form part of the Participant’s employment contract with the Company or any of its Subsidiaries.

 

18.                               Governing Laws

 

The Plan and the Award Letter shall be governed by the laws applicable in the Province of Quebec, Canada and any dispute relating to their interpretation and application shall be submitted to the tribunals of the district of Montreal, Québec.

 

19.                               Amendment and Termination

 

The Board, on the recommendation of the Committee, may, at any time and from time to time, amend, suspend or terminate the Plan, in whole or in part, or amend any term of any issued and outstanding Awards (including, without limitation, the earning, vesting and the expiry of an outstanding Award); provided that in the case of issued and outstanding Awards, the consent or the deemed consent of the concerned Participants shall be obtained in the event that the amendment materially prejudices the Participants’ rights.

 

Approved by the Board of Directors on September 26, 2017.

 

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ANNEX TO THE

PERFORMANCE SHARE UNIT PLAN FOR DESIGNATED LEADERS OF
 CGI GROUP INC. AND ITS SUBSIDIARIES

FOR U.S. PARTICIPANTS

 

This Annex to the Performance Share Unit Plan for the Designated Leaders of the Company and its Subsidiaries applies to Participants who are either residents of the United States or are subject to U.S. federal income tax (such Participants, the “U.S. Participants” and this annex, the “U.S. Annex”).  All capitalized terms but not defined in this U.S. Annex shall have the meanings ascribed to them in the Plan.

 

Notwithstanding any provision of the Plan or Award Letter to the contrary, in the event that any settlement or payment or an Award to a U.S. Participant is made upon, or as a result of the U.S. Participant’s termination of employment, and the U.S. Participant is a “specified employee” (as that term is defined under Section 409A of the U.S. Internal Revenue Code of 1986, as amended (the “Code”)) at the time the U.S. Participant becomes entitled to any such settlement or payment, and provided further that such settlement or payment does not otherwise qualify for an applicable exemption from Code Section 409A, then no such settlement or payment shall be made to the U.S. Participant under this Plan until the date that is the earlier to occur of: (i) the U.S. Participant’s death, or (ii) six (6) months and one (1) day following the  U.S. Participant’s termination of employment (the “Delay Period”).  Any settlement or payment which the U.S. Participant would otherwise have received during the Delay Period shall be made to the U.S. Participant in a lump sum on the date that is six (6) months and one (1) day following the effective date of the termination.  For purposes of the Plan and any applicable Award Letter, the terms “termination of employment,” “cessation of employment,” and variations thereof as used in the Plan or the applicable Award Letter are intended to mean a termination of employment that constitutes a “separation from service” as such term is defined under Code Section 409A.

 

The settlement or payment of any Award may not be accelerated except to the extent permitted by Code Section 409A.

 

Notwithstanding any provision of the Plan or Award Letter to the contrary, the Company may adopt such amendments to the Plan and/or Award Letter or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, in each case without the consent of the U.S. Participant, that the Company determines are necessary or appropriate to comply with the requirements of Code Section 409A and related U.S. Treasury regulations and guidance issued thereunder.

 

The Plan and the Awards granted hereunder are intended to be exempt from or otherwise comply with Code Section 409A, to the extent applicable thereto.  Notwithstanding any provision of Plan or Award Letter to the contrary, the Plan and the Award shall be interpreted and construed consistent with this intent. Notwithstanding the foregoing, the Company shall not be required to assume any increased economic burden in connection therewith.  Although the Company intends to administer the Plan so that the Plan and Awards granted hereunder comply with the requirements of Code Section 409A, to the extent applicable thereto, the Company does 

 

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not represent or warrant that the Plan or the Awards granted hereunder will comply with Code Section 409A or any other provision of federal, state, local, or any other applicable law.

 

Neither the Company nor its Subsidiaries or affiliates, nor their respective directors, officers, employees or advisers shall be liable to any U.S. Participant (or any other individual claiming a benefit through the U.S. Participant) for any tax, interest, or penalties the U.S. Participant may owe as a result of participation in the Plan, and the Company and its Subsidiaries and affiliates shall have no obligation to indemnify or otherwise protect any U.S. Participant from the obligation to pay any taxes pursuant to Code Section 409A or otherwise.

 

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