Document:

Exhibit 10.2

 

GREEN MOUNTAIN COFFEE ROASTERS, INC. 
 2014 AMENDED AND RESTATED
 EMPLOYEE STOCK PURCHASE PLAN

 

Article 1 - Defined Terms

 

Exhibit A, which is incorporated by reference, defines the terms used in the Plan and sets forth certain operational rules related to those terms.  Each capitalized word, term or phrase used in the Plan shall have the meaning set forth in Exhibit A or, if not defined in Exhibit A, the first place that it appears in the Plan.

 

Article 2 - Purpose.

 

The Plan is intended to encourage stock ownership by all Eligible Employees of the Company and its Participating Subsidiaries so that they may share in the growth of the Company by acquiring or increasing their proprietary interest in the Company. The Plan is designed to encourage Eligible Employees to remain in the employ of the Company and its Participating Subsidiaries. The plan of which the current Plan is an amendment and restatement was approved by the stockholders of the Company on March 26, 1999.

 

This Plan includes two components:  a Code Section 423 Component (the “423 Component”) and a non-Code Section 423 Component (the “Non-423 Component”).  It is the intention of the Company to have the 423 Component qualify as an “employee stock purchase plan” within the meaning of Code Section 423.  The provisions of the 423 Component, accordingly, shall be construed so as to extend and limit participation in a uniform and nondiscriminatory basis consistent with the requirements of Code Section 423.  In addition, this Plan authorizes the grant of an option to purchase shares of Common Stock under the Non-423 Component that does not qualify as an “employee stock purchase plan” under Code Section 423.  Such an option shall be granted pursuant to rules, procedures or sub-plans adopted by the Committee designed by the Committee to achieve tax, employment, securities law or other purposes and objectives for Eligible Employees of Participating Subsidiaries outside the United States and the Company.  Except as otherwise provided herein, the Non-423 Component will be operated and administered in the same manner as the 423 Component.

 

Article 3 - Administration of the Plan.

 

(a)                                 Authority of Committee.  The Plan will be administered by the Committee.  The Committee shall have the authority to take the following actions, among others, subject to the terms and conditions of the Plan:

 

i.                  to designate the Subsidiaries that participate in the Plan;

 

ii.               to determine the eligibility of any individual to participate in the Plan, including whether an Eligible Employee shall participate in the 423 Component or the Non-423 Component;

 

iii.            to determine whether and when a Payment Period will occur;

 

iv.           to determine the number of shares of Common Stock subject to an offering and the

 

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number of shares of Common Stock subject to an option to purchase shares of Common Stock to be granted under the Plan to any Participant;

 

v.              to establish procedures for making payroll deductions or contributions under the Plan;

 

vi.           to establish the Option Price for a Payment Period;

 

vii.        to determine the maximum amount permitted to be credited to a Participant’s Account and to suspend or reduce a Participant’s payroll deductions or contributions for any reason that the Committee deems necessary or advisable;

 

viii.     to determine the terms and conditions of each Offering and Payment Period made hereunder, based on such factors as the Committee shall determine;

 

ix.           to adopt sub-plans and special provisions applicable to Payment Periods regulated by the laws of jurisdictions outside of the United States, which sub-plans and special provisions may take precedence over other provisions of the Plan;

 

x.              to modify, amend, adjust or cancel any Offering, Payment Period or option to purchase shares of Common Stock or the terms and conditions of any Offering, Payment Period or option to purchase shares of Common Stock;

 

xi.           to treat any Participant’s attempt to transfer, pledge or otherwise encumber the Participant’s Account or option to purchase shares of Common Stock as a notice of withdrawal under the Plan;

 

xii.        to adopt, alter and repeal such administrative rules, guidelines and practices governing the Plan as it shall deem advisable from time to time;

 

xiii.     to interpret the terms and provisions of the Plan;

 

xiv.    to decide all other matters to be determined in connection with an Offering; and

 

xv.       to otherwise administer the Plan.

 

Notwithstanding the foregoing, any action taken by the Committee or its delegates that requires the approval of the Company’s stockholders under applicable law or Applicable Exchange rules shall be valid and effective only if the approval of the Company’s stockholders is obtained as required.

 

(b)                                 Delegation of Authority.  To the extent permitted by applicable law, the Committee may delegate any of its authority to administer the Plan to any person or persons selected by the Committee, including one or more members of the Committee or one or more officers of the Corporation, and such person or persons shall be deemed to be the Committee with respect to, and to the extent of, its or their authority.  In this regard and to the extent permitted under applicable law, the Committee hereby delegates its power, authority and responsibilities under the Plan to the Company’s Chief Human Resources Officer (or the individual holding equivalent duties and responsibilities).  Any authority granted to the Committee may also be exercised by the full Board.  To the extent that any permitted action taken by the Board conflicts with action taken by the Committee, the Board action shall control.

 

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(c)                              Procedures.  The Committee may act by a majority of its members then in office and, except to the extent prohibited by applicable law or the listing standards of the Applicable Exchange, through any person or persons to whom it has delegated its authority pursuant to Article 3(b).

 

(d)                                 Discretion of Committee and Binding Effect.  Any determination made by the Board, Committee or an appropriately delegated person or persons with respect to the Plan shall be made in the sole discretion of the Board, Committee or such delegate, unless in contravention of any express term of the Plan, including, without limitation, any determination involving the appropriateness or equitableness of any action.  All decisions made by the Board, Committee or any appropriately delegated person or persons shall be final and binding on all persons, including the Participating Subsidiaries, Employees, Eligible Employees, Participants and beneficiaries.

 

(e)                                  Limitation of Liability.  No liability whatsoever shall attach to or be incurred by any past, present or future stockholders of the Company, officers or directors of any Participating Subsidiary or any members of the Board, Committee or their delegates under or by reason of any of the terms, conditions or agreements contained in this Plan or implied therefrom, and any and all liabilities of, and any and all rights and claims against, any Participating Subsidiary or any stockholder of the Company, officer, director or Committee member whether arising at common law or in equity or created by statute or constitution or otherwise, pertaining to the Plan, are hereby expressly waived and released by every Participant as part of the consideration for the benefits provided under the Plan.

 

Article 4 - Eligibility.

 

All Eligible Employees on a given Offering Date shall be eligible to receive an option to purchase shares of Common Stock under the Plan; provided, however, that Employees who are citizens or residents of a specific jurisdiction may be excluded from participation in the Plan or an Offering if the participation of such Employees is prohibited under the laws of the applicable jurisdiction or if complying with the laws of the applicable jurisdiction would cause the Plan or an Offering to violate Code Section 423.  Further, in no event may an Eligible Employee be granted an option to purchase shares of Common Stock under the 423 Component of the Plan if such Employee, immediately after the option was granted, would be treated as owning stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company or of any parent corporation or subsidiary corporation, as the terms “parent corporation” and “subsidiary corporation” are defined in Section 424(e) and (f) of the Code.  For purposes of determining stock ownership under this paragraph, the rules of Section 424(d) of the Code shall apply, and stock which the Eligible Employee may purchase under outstanding options shall be treated as stock owned by the Employee.

 

Article 5 - Stock Subject to the Plan.

 

The stock subject to the options under the Plan shall be shares of the Company’s authorized but unissued Common Stock, or shares of Common Stock reacquired by the Company, including shares purchased in the open market.  The maximum number of shares of Common Stock that can be issued under the Plan, subject to any adjustment upon changes in capitalization as provided in Article 13, shall be 9,100,000.  The limitation set forth in this Article may be used to satisfy purchases of shares of Common Stock under either the 423 Component or the Non-423 Component.

 

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Article 6 - Payment Period and Stock Options.

 

Subject to the limitation set forth in the last paragraph of this Article 6, on each Offering Date, the Company will grant to each Participant in the Plan an option to purchase up to 3,750 shares of Common Stock on the last Trading Day of the Payment Period or, if fewer, the number of shares of Common Stock determined under Article 7 at the Option Price.

 

No Eligible Employee shall be granted an option under the 423 Component that permits the Eligible Employee’s right to purchase shares of Common Stock under the Plan and under all other Code Section 423(b) employee stock purchase plans of the Company and any parent or subsidiary corporations to accrue at a rate that exceeds US$25,000 of fair market value of such stock (determined at the time such option is granted) for each calendar year in which such option is outstanding at any time.  If the Participant’s accumulated payroll deductions or contributions on the last day of the Payment Period would otherwise enable the Participant to purchase shares of Common Stock in excess of the Code Section 423(b)(8) limitation described in this paragraph, the excess of the amount of the accumulated payroll deductions or contributions over the aggregate Option Price of the shares of Common Stock actually purchased shall be promptly refunded to the Participant by the Company, without interest (unless otherwise required by law).

 

Article 7 - Exercise of Option.

 

On the last Trading Day of a Payment Period, the Account balance of each Participant that is denominated in a currency other than U.S. Dollars shall be converted into U.S. Dollars at a rate of exchange determined by the Committee in its sole discretion.    Subject to the limitations in Article 17, each Eligible Employee who is a Participant on the last Trading Day of a Payment Period shall be deemed to have exercised his or her option to purchase shares of Common Stock on such date and thereby to have purchased from the Company such number of shares of Common Stock reserved for the purpose of the Plan, not in excess of 3,750 shares, as the Participant’s accumulated payroll deductions or contributions will purchase at the Option Price, subject to the Code Section 423(b)(8) limitation described in Article 6 for Participants participating in the Section 423 Component of the Plan.  No amounts may be carried forward to the next Payment Period.

 

Article 8 - Authorization for Entering the Plan.

 

An Eligible Employee may elect to participate for a Payment Period by executing and delivering to the Company a payroll deduction / contribution and participation authorization in accordance with procedures prescribed by and in a form acceptable to the Committee.  The Committee may establish a deadline in advance of the commencement of the Payment Period by which any such authorization must be delivered.  Unless a Participant files a new authorization or withdraws from the Plan, the deductions or contributions and purchases under the authorization the participant has on file under the Plan will continue from one Payment Period to succeeding Payment Periods as long as the Plan remains in effect.

 

Article 9 - Maximum Amount of Payroll Deductions / Contributions.

 

An Eligible Employee may request payroll deductions in an amount (expressed as a whole percentage) not less than one percent (1%) but not more than ten percent (10%) of the Eligible Employee’s total compensation, including base pay or salary and any overtime, bonuses or commissions.  If applicable law prohibits payroll deductions, the Committee, in its discretion, may

 

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permit a Participant to make contributions to the Participant’s Account in another form of contribution acceptable to the Committee, including contributions by direct debit from a Participant’s designated bank account or by check.  The Company or Participating Subsidiary that employs the Participant will accumulate and hold for each Participant’s Account the amounts deducted from his or her pay or contributed through alternate means if payroll deductions are impermissible.  Payroll deductions or contributions shall commence as of the Offering Date and as soon as administratively practicable following the date on which the Eligible Employee completes the enrollment process pursuant to Article 8, subject to any approvals or other requirements under local law.

 

Notwithstanding the foregoing, the Committee may, in its discretion, suspend or reduce a Participant’s payroll deductions or contributions under the Plan as it deems necessary or advisable.  Except where otherwise required under applicable local law, all Participant contributions may be held in a general account established in the name of the Company or the Participating Subsidiary that employs the applicable Participant.  No interest will be paid on these amounts except as required by local law.

 

Article 10 - Change in Payroll Deductions / Contributions.

 

Deductions (or contributions in jurisdictions where payroll deductions are prohibited) may not be increased or decreased during a Payment Period.  However, a Participant may withdraw in full from the Plan.

 

Article 11 - Withdrawal from the Plan.

 

A Participant may withdraw from the Plan (in whole but not in part) for a Payment Period at any time prior to the last day of the Payment Period by delivering a withdrawal notice to the Company, in which case the Company will promptly refund the entire balance of the Participant’s deductions or contributions not previously used to purchase shares of Common Stock under the Plan.

 

Article 12 - Issuance of Stock; Dividend Reinvestment.

 

Shares of Common Stock purchased upon exercise of an option shall be issued as soon as practicable after the Payment Period.  Shares of Common Stock purchased under the Plan shall be issued only in the name of the Participant.  Unless otherwise determined by the Committee, all shares of Common Stock purchased under the Plan shall be deposited directly into an account established in the name of each Participant with a broker or agent designated by the Committee.

 

The Company reserves the right to automatically reinvest any or all cash dividends on all shares of Common Stock purchased under the Plan for additional shares of Common Stock.

 

Article 13 - Adjustments.

 

In the event of any change in the outstanding shares of Common Stock of the Company by reason of a stock dividend, split-up, recapitalization, merger, consolidation or other reorganization, the aggregate number and class of shares available under the Plan, the number and class of shares under option but not exercised, the Option Price and other Plan terms, including share limits, shall be appropriately adjusted; provided, however, that no such adjustment shall be made unless the Company shall be satisfied that it will not constitute a

 

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modification of the options granted under the Plan or otherwise disqualify the 423 Component as an employee stock purchase plan under the provisions of Section 423 of the Code.

 

Article 14 — Equal Rights and Privileges; No Transfer or Assignment of Employee’s Rights.

 

All Participants granted options under the 423 Component of the Plan shall have the same rights and privileges.  Each Participant’s rights and privileges under the Plan shall be exercisable only by him or her and shall not be sold, pledged, assigned, or transferred in any manner.

 

Article 15 - Termination of Employment.

 

Whenever a Participant ceases to be an Eligible Employee because of retirement, voluntary or involuntary termination, resignation, layoff, discharge, death or for any other reason, his or her option rights under the Plan shall immediately terminate and the Company or Participating Subsidiary shall promptly refund, without interest (except as required by local law), the entire balance of his or her payroll deduction (or contribution) Account under the Plan. Notwithstanding the foregoing, eligible employment shall be treated as continuing intact while a Participant is on an approved leave of absence, or for so long as the Participant’s right to re-employment is guaranteed either by statute or by contract, if longer than the length of the approved leave of absence.

 

If a Participant’s payroll deductions or contributions are interrupted by any legal process, a withdrawal notice will be considered as having been received from the Participant on the day the interruption occurs.

 

Article 16 - Termination and Amendments to Plan.

 

The Plan may be terminated at any time by the Board.  Upon termination of the Plan, the Board may either (i) provide that then-outstanding options be administered in accordance with their terms, or (ii) accelerate the exercise date for then-outstanding options by specifying that the Payment Period in which such action occurs will end on a date earlier than its originally scheduled end date.  If at any time shares of Common Stock reserved for the purpose of the Plan remain available for purchase but not in sufficient number to satisfy all then unfilled purchase requirements, the available shares of Common Stock shall be apportioned among Participants in proportion to the amount of payroll deductions or contributions accumulated on behalf of each Participant that would otherwise be used to purchase shares of Common Stock, and the Plan shall terminate.  Upon such termination or any other termination of the Plan, all payroll deductions or contributions not used to purchase shares of Common Stock will be refunded, without interest (unless otherwise required by law).

 

The Committee or the Board may from time to time adopt amendments to the Plan provided that, without the approval of the stockholders of the Company, no amendment may (i) materially increase the number of Shares of Common Stock that may be issued under the Plan; (ii) change the class of employees eligible to receive options under the Plan, if such action would be treated as the adoption of a new plan for purposes of Section 423(b) of the Code; or (iii) cause the provisions of Section 16(b) of the Securities Exchange Act of 1934 to become inapplicable to the Plan.

 

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Article 17 - Restrictions on the Exercise of Options.

 

The Committee, in its sole discretion, may require as a condition to the exercise of options that the underlying shares of Common Stock be registered under the Securities Act of 1933, as amended, and that all other legal requirements necessary under state, federal and applicable foreign law, or in the Committee’s opinion, desirable from the Company’s standpoint, to the exercise of the options be satisfied or waived.

 

Article 18 - Participating Subsidiaries.

 

The Committee, or its delegate, shall designate Subsidiaries that will participate in the Plan.  The Committee, or its delegate, shall have the power to make such designation before or after the Plan is approved by the stockholders.

 

Article 19 - Optionees Not Stockholders.

 

An Employee shall not have any of the rights and privileges of a shareholder of the Company and shall not receive any dividends in respect to any shares of Common Stock subject to an option hereunder, unless and until such Employee has been issued such shares.

 

Article 20 - Withholding of Taxes.

 

All payroll deductions and contributions under the Plan will be made on an after-tax basis.  No later than the date as of which an amount first becomes includible in the Participant’s taxable income for federal, state, local or non-U.S. income or employment or other tax purposes with respect to any option to purchase shares of Common Stock, such Participant shall pay to the Company or Participating Subsidiary, as applicable, or make arrangements satisfactory to the Company or Participating Subsidiary, as applicable, regarding the payment of, any federal, state, local or non-U.S. taxes of any kind required by law to be withheld with respect to such amount.  The obligations of the Company and each Participating Subsidiary under the Plan shall be conditional on such payment or arrangements, and the Company and each Participating Subsidiary shall, to the extent permitted by law, have the right to deduct any such taxes from any payments otherwise due to the Participant.  Further, subject to applicable local law, the Company may (i) instruct the administrator/broker to sell such number of shares of Common Stock purchased by a Participant to raise the amount necessary to satisfy applicable withholding requirements or (ii) withhold whole shares of Common Stock that otherwise would have been delivered having an aggregate fair market value equal to the amount necessary to satisfy any withholding obligation.  The Committee may establish such procedures as it deems appropriate for the settlement of withholding obligations.

 

Article 21 - Conditions for Issuance.

 

Notwithstanding any other provision of the Plan or agreements made pursuant thereto, the Company shall not be required to issue or deliver shares of Common Stock under the Plan unless such issuance or delivery complies with all applicable laws, rules and regulations, including the requirements of any Applicable Exchange or similar entity, and the Company has obtained any consent, approval or permit from any federal, state or foreign governmental authority that the Committee determines to be necessary or advisable.

 

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Article 22 - No Special Employment Rights.

 

The Plan does not, directly or indirectly, create in any Employee any right with respect to continuation of employment by the Company or its Subsidiaries, and it shall not be deemed to interfere in any way with the right of the Company or its Subsidiaries to terminate, or otherwise modify, an Employee’s employment at any time.  Any rights or benefits provided under this Plan shall not be considered part of normal or expected compensation for purposes of calculating any severance, resignation, redundancy, end of service payments, bonuses, long service awards, pension, retirement or similar payments.

 

Article 23 - Offerings Outside the United States.

 

Notwithstanding anything in the Plan to the contrary, the Committee or its delegate may, in its sole discretion, adopt rules or procedures relating to the operation and administration of the Plan to accommodate the specific requirements of local laws and procedures for jurisdictions outside of the United States.  Without limiting the generality of the foregoing, the Committee or its delegate is specifically authorized to adopt rules, procedures and sub-plans of the Plan, which, for purposes of the Non-423 Component, may be outside the scope of Section 423 of the Code, without limitation, to:  (i) amend or vary the terms of the Plan in order to conform such terms with the laws, rules and regulations of each country outside of the United States where a Participating Subsidiary is located; (ii) amend or vary the terms of the Plan in each country where a Participating Subsidiary is located as it considers necessary or desirable to take into account or to mitigate or reduce the burden of taxation and social insurance contributions for Participants or the Participating Subsidiary; or (iii) amend or vary the terms of the Plan in each country outside of the United States where a Participating Subsidiary is located as it considers necessary or desirable to meet the goals and objectives of the Plan.  Each sub-plan established pursuant to this Article 23 shall be reflected in a written supplement to the Plan.  The total number of shares of Common Stock authorized to be issued under the Plan shall include any shares of Common Stock issued under any sub-plan of the Plan.

 

Article 24 - Governing Law.

 

The Plan shall be governed by the laws of the State of Delaware, without giving effect to the principles of conflicts of law thereof, and shall be construed accordingly.

 

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EXHIBIT A

 

Definition of Terms

 

The following terms, when used in the Plan, will have the meanings and be subject to the provisions set forth below:

 

“Account”:   The account established for each Participant under the Plan which will be maintained in the currency used by the Company or Participating Subsidiary, as applicable, to pay the Participant’s compensation and will be converted into U.S. Dollars as provided in Article 7, as applicable, in its general corporate account or in one or more trusts or separate accounts, as determined by the Committee in its discretion in accordance with applicable law, and will not be credited with interest of earnings of any kind, unless otherwise required by applicable law.

 

“Applicable Exchange”:  The NASDAQ National Market System or such other securities exchange as may be the principal market for the shares of Common Stock at the applicable time.

 

“Board”:  The Board of Directors of the Company.

 

“Code”:  The United States Internal Revenue Code of 1986, as amended from time to time, or any successor statute thereto, and the regulations promulgated thereunder.

 

“Company”:  Green Mountain Coffee Roasters, Inc., a Delaware corporation.

 

“Committee”:  The Compensation and Organizational Development Committee of the Board.

 

“Common Stock”:  Shares of common stock of the Company, par value US$0.10 per share.

 

“Eligible Employee”:  An individual who (i) is an Employee, and (ii) meets such eligibility criteria as may be determined by the Committee.  An Employee shall first become eligible on the first day of the following month after completing thirty (30) days of employment.  Except as otherwise prohibited under applicable law, “Eligible Employee” shall exclude any Employee whose customary employment is twenty (20) or fewer hours per week.

 

“Employee”:  Any individual who is classified as an employee by the Company or a Participating Subsidiary on such entity’s payroll records.  An individual who is classified by the Company or a Participating Subsidiary as an independent contractor, leased employee, consultant advisor or member of the Board is not an Employee for purposes of the Plan, even if such individual is determined to be a common law employee of the Company or a Participating Subsidiary.  For purposes of individuals performing services for a Participating Subsidiary outside of the United States, “Employee” shall be determined in accordance with the foregoing provisions except as otherwise may be required under applicable local law.  In addition, for purposes of this Plan, a Participant shall cease to be an Employee either upon an actual termination of employment or upon the Subsidiary employing the Participant ceasing to be a Participating Subsidiary.

 

“Offering”:  An offer under the Plan of an option to purchase shares of Common Stock under the Plan that may be exercised during an Payment Period as further described in Articles 6 and 7. For purposes of this Plan, the Committee may designate separate Offerings under the Plan (the terms of which need not be identical) in which Eligible Employees of one or more Participating Subsidiaries

 

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will participate, even if the dates of the applicable Payment Periods of each such Offering are identical.

 

“Offering Date”:  Unless otherwise determined by the Committee, (i) the last Sunday in September of each year with respect to the Payment Period running from the last Sunday in September of each year and ending on the last Saturday in March of each year and (ii) the last Sunday in March of each year with respect to the Payment Period running from the last Sunday in March of each year and ending on the last Saturday of September of each year.

 

“Option Price”:  The per share exercise price to be paid by a Participant to purchase a share of Common Stock that is equal to the lesser of (i) 85% of the fair market value of a share of Common Stock on the first Trading Day of the Payment Period and (ii) 85% of the fair market value of a share of Common Stock on the last Trading Day of the Payment Period, in either event rounded up to avoid fractions of a U.S. dollar other than 1/4, 1/2 and 3/4.  Notwithstanding the foregoing, the Committee has the authority to change the Option Price for an Offering prior to the commencement of a Payment Period by any manner or method the Committee determines, pursuant to Article 2, and subject to (i) with respect to the 423 Component, compliance with Code Section 423 (or any successor rule or provision or any other applicable law, regulation or Applicable Exchange rule) or (ii) with respect to the Non-423 Component, pursuant to such manner or method as determined by the Committee to comply with applicable local law.

 

“Participant”:  An Eligible Employee who has commenced participation in the Plan pursuant to Article 8 and who has not ceased participation in the Plan pursuant to Articles 11 or 15.

 

“Participating Subsidiary”:  Any present or future subsidiary of the Company, as that term is defined in Section 424(f) of the Code, which is designated from time to time by the Committee, or its delegate, to participate in the Plan under either the 423 Component or Non-423 Component.

 

“Payment Period”:  Unless otherwise determined by the Committee or its delegate with respect to a particular Offering, jurisdiction, Subsidiary or sub-plan:  A period (i) commencing on the last Sunday in September of each year and ending on the last Saturday in March of each year and (ii) commencing on the last Sunday in March of each year and ending on the last Saturday of September of each year.

 

“Plan”: The Green Mountain Coffee Roasters, Inc. 2014 Amended and Restated Employee Stock Purchase Plan, as from time to time amended and in effect, and any sub-plan(s) established hereunder to comply with the laws of jurisdictions outside of the United States of America.

 

“Trading Day”:  A day on which the NASDAQ is open for trading.

 

“U.S. Dollar” and “US$”:  The lawful currency of the United States of America.

 

10Exhibit 10.3

 

PSU - 1

 

GREEN MOUNTAIN COFFEE ROASTERS, INC.
 PERFORMANCE STOCK UNIT AWARD AGREEMENT

 

This Performance Stock Unit (“PSU”) Award Agreement (this “Agreement”) is made and entered into as of [·] (the “Grant Date”) by and between Green Mountain Coffee Roasters, Inc. (the “Company”) and [·] (the “Participant”), pursuant to the terms of the Green Mountain Coffee Roasters, Inc. 2014 Omnibus Incentive Plan, as may be amended from time to time (the “Plan”).

 

	
Participant:
    	
 
    	
<<Participant Name>>
    
	
 
    	
 
    	
 
    
	
Grant Date:
    	
 
    	
<<Grant Date>>
    
	
 
    	
 
    	
 
    
	
Target Number of PSUs:
    	
 
    	
<<Number   of Target PSUs>> (the “Target Award”)
    
	
 
    	
 
    	
 
    
	
Performance-Based Vesting   Conditions:
    	
 
    	
See Annex A
    
	
 
    	
 
    	
 
    
	
Performance Period:
    	
 
    	
See Annex A
    
	
 
    	
 
    	
 
    
	
Time-Based Vesting Schedule:
    	
 
    	
See Section 5
    

 

1.              Grant of PSUs.  The Company hereby grants to the Participant on the Grant Date a Performance Award (the “Award”) consisting of the target number of PSUs set forth above (the “Target Award”).  Each PSU represents the conditional right to receive, without payment but subject to the conditions and limitations set forth in this Agreement and the Plan, one share of Stock (each, a “Share” or together, the “Shares”).

 

2.              Award Subject to Plan.  The Award is subject in its entirety to the provisions of the Plan, which are incorporated herein by reference.  Except as otherwise specifically stated herein, in the event of any conflict between this Agreement and the Plan, the terms of the Plan will control.  Capitalized terms not explicitly defined in this Agreement but defined in the Plan will have the meanings ascribed to them in the Plan. For purposes of this Agreement, “Employer” means the entity (the Company or the Affiliate) that employs the Participant on the applicable date.

 

3.              Rights as Shareholder; Limits on Transfer.  Each PSU represents an unfunded and unsecured promise by the Company to deliver one Share to the Participant upon vesting of the PSU.  The Participant will not have any rights of a shareholder with respect to any PSUs (including any voting rights or rights with respect to dividends) unless and until the PSU is earned and vests and is settled by the issuance of a Share.  Neither the PSUs nor the rights relating thereto may be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the

 

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Participant except upon the Participant’s death to a beneficiary designated in writing by the Participant in accordance with procedures established by the Administrator, or if none, to the person to whom the Award passes by will or the laws of descent and distribution.

 

4.              Percentage of Target Award that May be Earned.  Except as otherwise provided herein, the percentage of the Target Award that that may be earned by the Participant will be determined in accordance with Annex A hereto (which Annex A is incorporated by reference and is made part of this Agreement).

 

5.              Vesting of Earned Stock Units; Effect of Termination of Employment.

 

5.1                 Except as otherwise provided herein, provided that the Participant remains in continuous Employment through the applicable vesting date, fifty percent (50%) of the Earned Stock Units will vest on the Initial Vesting Date and fifty percent (50%) of the Earned Stock Units will vest on the one-year anniversary of the Initial Vesting Date.  The Earned Stock Units that vest on the Initial Vesting Date will be settled by the Company not later than December 31, 2015 and the Earned Stock Units that vest on the one-year anniversary of the Initial Vesting Date will be settled by the Company in calendar year 2016 and not later than December 31, 2016.  Subject to Section 5.2 of this Agreement, if the Participant’s Employment is terminated prior to a vesting date, any then unvested PSUs or Earned Stock Units, as the case may be, will terminate without any consideration therefore due or payable to the Participant.

 

5.2                 Notwithstanding the foregoing vesting schedule, and subject to compliance with Section 11, the following provisions will apply:

 

(a)            Termination upon Participant’s Death.  If the Participant’s Employment terminates as a result of the Participant’s death prior to the last day of the Performance Period (such last day of the Performance Period, the “Measurement Date”), the PSUs will immediately vest in full as of the date of the Participant’s death as if 100% of the Target Award had been earned in accordance with Annex A (and such PSUs that so vest as provided for in this sentence will be deemed to be “Earned Stock Units” for purposes of the remaining sections of this Agreement).  If such termination occurs after the Measurement Date, subject to the Administrator’s determination and certification of the achievement of the Performance Targets in Accordance with Annex A, any Earned Stock Units that are unvested as of the date of the Participant’s death will immediately vest as of such date.

 

(b)             Vesting due to Disability.  If a Participant becomes disabled prior to the Measurement Date, the PSUs will immediately vest in full as of the date the Participant becomes disabled as if 100% of the Target Award had been earned in accordance with Annex A (and such PSUs that so vest as provided for in this sentence will be deemed to be “Earned Stock Units” for purposes of the remaining sections of this Agreement).  If the Participant becomes disabled after the Measurement Date, subject to the Administrator’s determination and certification of the achievement of the Performance Targets in Accordance with Annex A, any Earned Stock Units that are unvested as of the date the Participant becomes disabled will immediately vest as of such

 

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date.  For purposes of this Agreement, a Participant will be considered “disabled” at such time as the Administrator determines that the Participant is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, (i) unable to engage in any substantial gainful activity, or (ii) receiving income replacement benefits for a period of not less than three (3) months under an Employer long-term disability plan.

 

(c)              Termination upon Participant’s Retirement.  If a Retirement-Eligible Participant’s Employment terminates for any reason other than death, disability (within the meaning of Section 5.2(b)) of this Agreement) or a termination for Cause (“Retirement”) prior to the Measurement Date, subject to the Administrator’s determination and certification of the achievement of the Performance Targets in Accordance with Annex A, as of the Measurement Date, a number of PSUs will vest equal to the product obtained by multiplying (x) the number of Earned Stock Units by (y) a fraction, the numerator of which is the number of days the Participant was continuously employed during the period beginning on the Measurement Start Date and ending on the date of such termination of Employment, and the denominator of which is the number of days from the Measurement Start Date until the Measurement Date.  If such termination occurs after the Measurement Date, subject to the Administrator’s determination and certification of the achievement of the Performance Targets in Accordance with Annex A, any Earned Stock Units that are unvested as of the date of such termination of Employment will immediately vest as of such date.  For purposes of this Agreement, a Participant will be considered a “Retirement-Eligible Participant” from and after the earliest date, if any, on which the Participant either (i) is at least fifty-five (55) years of age and has at least fifteen (15) years of service with the Company or any Affiliate of the Company (counting service with any entity that is an Affiliate of the Company only during such periods as it is an Affiliate of the Company, except as the Administrator may otherwise determine) (“retirement-eligibility service”), or (ii) is at least sixty (60) years of age and has at least five (5) years of retirement-eligibility service.

 

(d)             Termination upon Participant’s Involuntary Termination Not-for-Cause.  If the Employment of a Participant who is not a Retirement-Eligible Participant terminates as a result of the Participant’s involuntary termination not-for-Cause prior to the Measurement Date, subject to the Administrator’s determination and certification of the achievement of the Performance Targets in accordance with Annex A, as of the Measurement Date, a number of PSUs will vest equal to the product obtained by multiplying (x) the number of Earned Stock Units by (y) a fraction, the numerator of which is the number of days the Participant was continuously employed during the period beginning on the Measurement Start Date and ending on the date of such termination of Employment, and the denominator of which is the number of days from the Measurement Start Date until the Measurement Date.  If such termination occurs after the Measurement Date, subject to the Administrator’s determination and certification of the achievement of the Performance Targets in accordance with Annex A, any Earned Stock Units that are unvested as of the date of such termination of Employment will immediately vest as of such date.

 

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(e)              Termination upon Participant’s Voluntary Termination or for Cause.  If the Employment of a Participant who is not a Retirement-Eligible Participant terminates due to the Participant’s voluntary termination or if the Employment of the Participant (whether or not a Retirement-Eligible Participant) is terminated by the Employer for Cause, any then unvested or unearned portion of the Award will be immediately forfeited upon the date of such termination without any payment or consideration due by the Company.  For purposes of this Agreement, other than Section 5.2(f) and the definition of “Qualifying Termination,” “Cause” has the meaning, if any, ascribed to it in an employment agreement between the Participant and the Employer in effect on the date the Participant terminates Employment, or if no such definition exists, means any or any combination of the following: (i) commission by the Participant of a crime involving moral turpitude, or of a felony; (ii) gross neglect by the Participant of his or her duties (other than as a result of incapacity resulting from physical or mental illness or injury) that continues for thirty (30) days after the Employer gives written notice to the Participant thereof; or (iii) an act of dishonesty or breach of faith in the conduct by the Participant of his or her duties for the Employer that is materially injurious to the Employer.

 

(f)               Change in Control.  In the event the Participant experiences a “Qualifying Termination” as defined in the Company’s 2008 Change-in-Control Severance Benefit Plan, as amended from time to time (the “CIC Severance Plan”), prior to the Measurement Date, the PSUs will immediately vest in full as of the date of such Qualifying Termination as if 100% of the Target Award had been earned in accordance with Annex A (and such PSUs will be deemed to be “Earned Stock Units “ for purposes of the remaining sections of this Agreement). If the Participant’s Qualifying Termination occurs after the Measurement Date, subject to the Administrator’s determination and certification of the achievement of the Performance Targets in accordance with Annex A, any Earned Stock Units that are unvested as of the date of such termination of Employment will immediately vest as of such date.

 

6.              Settlement.

 

6.1                 Subject to Sections 5.1 and 7 hereof, promptly following the applicable vesting date, and in any event no later than sixty (60) days following such vesting date, the Company will (i) issue and deliver to the Participant the number of Shares equal to the applicable number of Earned Stock Units; and (ii) enter the Participant’s name on the books of the Company as the shareholder of record with respect to the Shares so delivered to the Participant.  No fractional Shares will be issued under this Agreement.

 

6.2                 Notwithstanding Section 6.1, if the Participant is resident or employed outside of the United States, the Company, in its sole discretion, may provide for settlement of the Earned Stock Units in the form of (i) a cash payment to the extent settlement in Shares (1) is prohibited under local law, (2) would require the Participant, the Company or an Affiliate to obtain the approval of any governmental or regulatory body in the Participant’s country of residence (or country of Employment, if different), (3) would result in adverse tax consequences for the Participant, the Company or an Affiliate or (4) is administratively burdensome; or (ii) Shares, but require the Participant to sell such Shares immediately or within a specified period following the

 

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Participant’s termination of Employment to comply with local law, rules and/or regulations (in which case, the Participant hereby agrees that the Company shall have the authority to issue sale instructions in relation to such Shares on the Participant’s behalf).

 

7.              Tax Liability; Withholding; Section 409A.

 

7.1                 Regardless of any action the Company or Employer takes with respect to any or all income tax (including U.S. federal, state and local taxes and/or non-U.S. taxes), social insurance, payroll tax, payment on account or other tax—related withholding (“Tax-Related Items”), the Participant acknowledges that the ultimate liability for all Tax—Related Items legally due by the Participant is and remains the Participant’s responsibility, and that the Company and Employer: (a) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the PSUs, including the grant of the PSUs, the vesting of the PSUs or the Earned Stock Units, as the case may be, the settlement of the Earned Stock Units, the subsequent sale of any Shares acquired pursuant to the Earned Stock Units and the receipt of any dividends or dividend equivalents; and (b) do not commit to structure the terms of the grant or any aspect of the PSUs to reduce or eliminate the Participant’s liability for Tax-Related Items.

 

Unless otherwise determined by the Administrator, at the time of settlement, the Company and Employer will have the right to deduct from any compensation paid to the Participant pursuant to this Agreement or otherwise, the amount of any required withholding or other applicable taxes in respect of the PSUs or the Earned Stock Units, and to take all such other action as the Administrator deems necessary to satisfy all obligations for the payment of such withholding or other applicable taxes.  The Company may also satisfy any withholding obligation by withholding Shares from the Shares otherwise issuable or deliverable to the Participant as a result of the vesting and/or settlement of the Earned Stock Units (or, in the case of PSUs settled in cash, a portion of the cash proceeds); provided, however, that no Shares will be withheld with a value exceeding the minimum amount of tax required to be withheld by law (as determined by the Administrator in good faith and in its sole discretion).  Furthermore, the Company may, on behalf of the Participant, sell a sufficient number of whole Shares issued upon settlement of the Earned Stock Units having an aggregate value that would satisfy any withholding obligation (in which case, the Participant hereby agrees that the Company has the authority to issue sale instructions on the Participant’s behalf).

 

In the event the withholding requirements are not satisfied through the methods described herein, no Shares (or cash) will be issued in settlement of the Earned Stock Units unless and until satisfactory arrangements (as determined by the Administrator) have been made by the Participant with respect to the payment of any Tax—Related Items.  If the Participant is subject to taxation in more than one jurisdiction, the Participant acknowledges that the Company, the Employer or another Affiliate may be required to withhold or account for Tax-Related Items in more than one jurisdiction.  By accepting this grant of PSUs, the Participant expressly consents to the withholding methods as provided for hereunder.  All other Tax-Related Items related to the PSUs and any Shares or cash delivered in payment thereof are Participant’s sole responsibility.

 

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7.2                 This Agreement is intended to comply with Section 409A or an exemption thereunder, and will be construed and interpreted in a manner that is consistent with the requirements for avoiding additional taxes or penalties under Section 409A.  Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement comply with Section 409A, and in no event will the Company or any Affiliate be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by the Participant on account of non-compliance with Section 409A.

 

7.3                 If the Participant is determined to be a “specified employee” within the meaning of Section 409A, and the U.S. Treasury regulations thereunder, as determined by the Administrator, at the time of the Participant’s “separation from service” within the meaning of Section 409A and the U.S. Treasury regulations thereunder, then to the extent necessary to prevent any accelerated or additional tax under Section 409A, the settlement and delivery of any Shares hereunder upon such separation from service will be delayed until the earlier of (a) the date that is six months and one day following the Participant’s separation from service and (b) the Participant’s death. For purposes of this Agreement, all references to “termination of Employment” and correlative phrases will be construed to require a “separation from service” (as defined in Section 1.409A-1(h) of the U.S. Treasury regulations after giving effect to the presumptions contained therein).  Each payment made under this Agreement shall be treated as a separate payment.

 

8.              Compliance with Law; Repatriation.

 

8.1                The Award granted hereunder and the issuance and transfer of the Shares is contingent upon and subject to compliance by the Company and the Participant with all applicable requirements of federal, state and non-U.S. securities laws and with all applicable requirements of any stock exchange on which the Stock may be listed.  In the event such requirements are not met, the Award may be declared null and void and the Participant will not have any claims against the Company or any Affiliate to receive any payment or other benefits in lieu of the Award.  Further, no shares of Stock will be issued or transferred unless and until any then applicable requirements of federal, state and non-U.S. laws and regulatory agencies have been fully complied with to the satisfaction of the Company and its counsel.

 

8.2                As a condition of this Award, Participant agrees to repatriate all payments attributable to the PSUs in accordance with local foreign exchange rules and regulations in the Participant’s country of residence (and country of Employment, if different).  In addition, the Participant agrees to take any and all actions, and consents to any and all actions taken by the Company and Employer, as may be required to allow the Company and Employer to comply with local laws, rules and regulations in the Participant’s country of residence (and country of Employment, if different).  Finally, the Participant agrees to take any and all actions that may be required to comply with the Participant’s personal legal and tax obligations under local laws, rules and regulations in the Participant’s country of residence (and country of Employment, if different).

 

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9.              Consent to Collection/Processing/Transfer of Personal Data.  Pursuant to applicable personal data protection laws, the Company hereby notifies the Participant of the following in relation to the Participant’s personal data and the collection, processing and transfer of such data in relation to the Company’s grant of the PSUs and participation of the Participant in the Plan.  The collection, processing and transfer of the Participant’s personal data is necessary for the Company’s administration of the Plan and the Participant’s participation in the Plan, and the Participant’s denial and/or objection to the collection, processing and transfer of personal data may affect the Participant’s participation in the Plan.  As such, the Participant voluntarily acknowledges and consents (where required under applicable law) to the collection, use, processing and transfer of personal data as described herein.

 

The Company and its Affiliates hold certain personal information about the Participant, including, but not limited to, the Participant’s name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any Shares or directorships held in the Company, details of all options, units or any other entitlement to Shares (or cash) awarded, cancelled, purchased, vested, unvested or outstanding in the Participant’s favor, for the purpose of managing and administering the Plan (“Data”).  The Data may be provided by the Participant or collected, where lawful, from third parties, and the Company and its Affiliates will process the Data for the exclusive purpose of implementing, administering and managing the Participant’s participation in the Plan.  The Data processing will take place through electronic and non-electronic means according to logics and procedures strictly correlated to the purposes for which Data are collected and with confidentiality and security provisions as set forth by applicable laws and regulations in the Participant’s country of residence (and country of Employment, if different).  Data processing operations will be performed minimizing the use of personal and identification data when such operations are unnecessary for the processing purposes sought.  Data will be accessible within the Company’s organization only by those persons requiring access for purposes of the implementation, administration and operation of the Plan and for the Participant’s participation in the Plan.

 

The Company and its Affiliates will transfer Data internally as necessary for the purpose of implementation, administration and management of the Participant’s participation in the Plan, and the Company and its Affiliates may further transfer Data to any third parties assisting the Company in the implementation, administration and management of the Plan.  These recipients may be located in the European Economic Area, or elsewhere throughout the world, such as the United States.  The Participant hereby authorizes (where required under applicable law) them to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing his or her participation in the Plan, including any requisite transfer of such Data as may be required for the administration of the Plan and/or the subsequent holding of Shares (or cash) on the Participant’s behalf to a broker, escrow agent or other third party with whom the Participant may elect to deposit any Shares (or cash) acquired pursuant to the Plan.

 

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The Participant may, at any time, exercise his or her rights provided under applicable personal data protection laws, which may include the right to (a) obtain confirmation as to the existence of the Data, (b) verify the content, origin and accuracy of the Data, (c) request the integration, update, amendment, deletion, or blockage (for breach of applicable laws) of the Data, (d) oppose, for legal reasons, the collection, processing or transfer of the Data which is not necessary or required for the implementation, administration and/or operation of the Plan and the Participant’s participation in the Plan, and (e) withdraw the Participant’s consent to the collection, processing or transfer of Data as provided hereunder (in which case, the Award will be null and void).  The Participant may seek to exercise these rights by contacting the Participant’s local Human Resources manager or the Company’s Human Resources Department.

 

10.       Electronic Delivery.  The Company may, in its sole discretion, deliver by electronic means any documents related to current or future participation in the Plan.  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.

 

11.       Non-competition and Non-solicitation.

 

11.1          In consideration of the Award, the Participant agrees and covenants not to, without the explicit written permission of the Company’s General Counsel:

 

(a)             work for, be employed or engaged by, or in any manner contribute his or her knowledge or services to, directly or indirectly, in whole or in part, as an employee, officer, owner, manager, advisor, consultant, agent, partner, director, shareholder, volunteer, intern or in any other similar capacity, any entity engaged in the same or similar business as the Company and its Affiliates during the Participant’s Employment and for a period of twelve (12) months following the termination of the Participant’s Employment (howsoever caused);

 

(b)             directly or indirectly, solicit, hire, recruit, attempt to solicit, hire or recruit, or otherwise induce the termination of Employment of, any employee of the Company or its Affiliates, or assist any other person or entity to do any of the foregoing, during the Participant’s Employment and for a period of twelve (12) months following the termination of the Participant’s Employment (howsoever caused); or

 

(c)              directly or indirectly, solicit, contact (including, but not limited to, by e-mail, regular mail, express mail, telephone, fax, or instant message), attempt to contact or meet with any of the then current customers of the Company or any of its Affiliates for purposes of offering, accepting or delivering any goods or services similar to or competitive with those currently offered by the Company or any of its Affiliates, or known by the Participant to be in development by the Company or any of its Affiliates, during the Participant’s Employment and for a period of twelve (12) months following the termination of the Participant’s Employment (howsoever caused).

 

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11.2          In the event of a breach of any of the covenants contained in Section 11.1:

 

(a)             any unvested or unearned portion of the PSUs or Earned Stock Units will be forfeited effective as of the date of such breach, unless sooner terminated by operation of another term or condition of this Agreement or the Plan; and

 

(b)            the Participant hereby consents and agrees that the Company will be entitled to a temporary restraining order and preliminary or permanent injunction or other equitable relief against such breach or threatened breach from any court of competent jurisdiction, without the necessity of showing any actual damages or that money damages would not afford an adequate remedy, and without the necessity of posting any bond or other security, and to an award of its reasonable attorney’s fees incurred in securing such relief.  The aforementioned equitable relief will be in addition to, and not in lieu of, any legal remedies, monetary damages or other available forms of relief.

 

11.3          Provisions of this Agreement will survive any termination of this Agreement or the expiration or settlement of the PSUs if so provided herein or if necessary or desirable to accomplish the purposes of other surviving provisions, including, without limitation, the obligations of the Participant under this Section 11 and the provisions of Section 12 below.

 

12.       Recovery of Compensation.  The PSUs, the Earned Stock Units, any Shares (or cash) delivered hereunder and any gains realized or other amounts in respect of such PSUs or Earned Stock Units will be subject to recoupment by the Company to the extent required to comply with applicable laws, rules or regulations, the rules of the stock exchange on which the Stock is traded and/or any Company clawback policy, as may be in effect and amended, from time to time.

 

13.       Notices.  Any notice required to be delivered to the Company under this Agreement will be in writing and addressed to the Secretary of the Company at the Company’s principal corporate offices.  Any notice required to be delivered to the Participant under this Agreement will be in writing and addressed to the Participant at the Participant’s address as shown in the records of the Company.  Either party may designate another address in writing (or by such other method approved by the Company) from time to time.

 

14.       Governing Law.  This Agreement will be construed and interpreted in accordance with the laws of the State of Delaware without regard to conflict of law principles.

 

15.       Interpretation.  Any dispute regarding the interpretation of this Agreement will be submitted by the Participant or the Company to the Administrator for review.  The resolution of such dispute by the Administrator will be final and binding on the Participant and the Company.

 

16.       Successors and Assigns.  The Company may assign any of its rights under this Agreement. This Agreement will be binding upon and inure to the benefit of the successors and assigns of the Company.  Subject to the restrictions on transfer set forth herein, this Agreement will be binding upon the Participant and the Participant’s beneficiaries, executors or administrators.

 

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17.       Severability.  The invalidity or unenforceability of any provision of the Plan or this Agreement will not affect the validity or enforceability of any other provision of the Plan or this Agreement, and each provision of the Plan and this Agreement will be severable and enforceable to the extent permitted by law.

 

18.       Nature of the Award.  By entering into this Agreement and accepting the Award, the Participant acknowledges that:

 

(a)            the Plan is established voluntarily by the Company, is discretionary in nature and may be modified, suspended or terminated by the Company, in its sole discretion, at any time as provided in the Plan;

 

(b)            the grant of this Award is a discretionary one-time benefit and does not create any contractual or other right to receive future grants of awards or benefits in lieu of awards;

 

(c)             all determinations with respect to any such future grants, including, but not limited to, the times when awards will be granted, the form of awards, the number of shares subject to each award, the award price, if any, and the time or times when each award will be settled, will be at the sole discretion of the Company;

 

(d)            the Participant’s participation in the Plan is voluntary;

 

(e)             the value of this Award is an extraordinary item which is outside the scope of the Participant’s employment contract, if any;

 

(f)              this Award is not part of normal or expected compensation for any purpose, including without limitation for calculating any benefits, severance, resignation, termination, redundancy, end of service payments, bonuses, long-service awards, welfare, insurance, pension or retirement benefits or similar payments;

 

(g)             the future value of the Shares subject to this Award is unknown and cannot be predicted with certainty;

 

(h)            neither the Company nor any Affiliate shall be liable for any foreign exchange rate fluctuation, where applicable, between the Participant’s local currency and the United States dollar that may affect the value of the PSUs or of any amounts due to the Participant pursuant to the settlement of the Earned Stock Units or the subsequent sale of any Shares acquired upon settlement;

 

(i)                neither the Plan, this Award nor the issuance of the Shares will (1) confer upon the Participant any right to continue in the employ of (or any other relationship with) the Employer, (2) alter in any way the Participant’s current Employment relationship with the Employer, or (3) limit in any respect the right of the Employer to terminate the Participant’s Employment or other relationship with the Employer, at any time;

 

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(j)               in the event that the Participant is not a direct employee of the Company, the grant of this Award will not be interpreted to form an Employment relationship with the Company; and furthermore, the grant of this Award will not be interpreted to form an employment contract with the Employer, the Company or any Affiliate.  For the avoidance of doubt, language relating to termination for “Cause” or “not-for-Cause” pertains solely to the opportunity to be granted PSUs and to vest and earn the PSUs as provided in this Agreement, and does not require the Company or the Employer to establish “Cause” for the termination of the Participant’s Employment;

 

(k)             in consideration of the Award, no claim or entitlement to compensation or damages shall arise from termination of the PSUs or diminution in value of the PSUs or Shares acquired upon vesting of the Earned Stock Units resulting from termination of the Participant’s Employment or service (for any reason whatsoever and whether or not in breach of local labor laws) and the Participant irrevocably releases the Company and any Affiliate 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 signing this Agreement, the Participant shall be deemed irrevocably to have waived his or her entitlement to pursue such claim;

 

(l)                 in the event of termination of the Participant’s Employment or service (whether or not in breach of local labor laws), the Participant’s right to receive the PSUs and vest in the Earned Stock Units under the Plan, if any, will terminate effective as of the date that the Participant is no longer actively employed or providing service and will not be extended by any notice period mandated under local law (e.g., active Employment or service would not include a period of “garden leave” or similar period pursuant to local law); the Administrator shall have the exclusive discretion to determine when the Participant is no longer actively employed or providing service for purposes of the PSUs;

 

(m)         neither the Company nor any Affiliate is providing any tax, legal or financial advice, nor is the Company or any Affiliate making any recommendations regarding the Participant’s participation in the Plan, or the Participant’s acquisition or sale of the underlying Shares; and

 

(n)            the Participant is hereby advised to consult with the Participant’s personal tax, legal and financial advisors regarding participation in the Plan before taking any action related to the Plan or the PSUs.

 

19.       Amendment.  The Administrator has the right to amend, alter, suspend, discontinue or cancel the PSUs prospectively or retroactively; provided, that, no such amendment will adversely affect the Participant’s material rights under this Agreement without the Participant’s consent.

 

20.       Counterparts.  This Agreement may be executed in counterparts, each of which will be deemed an original but all of which together will constitute one and the same instrument. Counterpart signature pages to this Agreement transmitted by facsimile transmission, by electronic mail in portable document format (.pdf), or by any other electronic means intended to

 

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preserve the original graphic and pictorial appearance of a document, will have the same effect as physical delivery of the paper document bearing an original signature.

 

21.       Private Placement.  If the Participant is resident and/or employed outside of the United States, the Award is not intended to be a public offering of securities in the Participant’s country of residence (and country of Employment, if different).  The Company has not submitted any registration statement, prospectus or other filing with the local securities authorities (unless otherwise required under local law), and the Award is not subject to the supervision of the local securities authorities.

 

22.       English Language.  If the Participant is resident and/or employed outside of the United States, the Participant acknowledges and agrees that it is the Participant’s express intent that this Agreement, the Plan and all other documents, notices and legal proceedings entered into, given or instituted pursuant to the Award, be drawn up in English.  If the Participant has received this Agreement, the Plan or any other documents related to the Award translated into a language other than English, and if the meaning of the translated version is different from the English version, the meaning of the English version shall control.

 

23.       Addendum.  Notwithstanding any provisions of this Agreement to the contrary, the Award shall be subject to any special terms and conditions for the Participant’s country of residence (and country of Employment, if different), as set forth in the applicable Addendum to this Agreement.  Further, if the Participant transfers residence and/or Employment to another country reflected in an Addendum to this Agreement, the special terms and conditions for such country will apply to the Participant to the extent the Administrator determines, in its sole discretion, that the application of such terms and conditions is necessary or advisable in order to comply with local laws, rules and/or regulations or to facilitate the operation and administration of the Award and the Plan (or the Administrator may establish alternative terms and conditions as may be necessary or advisable to accommodate the Participant’s transfer).  Any applicable Addendum shall constitute part of this Agreement.

 

24.       Additional Requirements.  The Administrator reserves the right to impose other requirements on the Award, any payment made pursuant to the Award, and the Participant’s participation in the Plan, to the extent the Administrator determines, in its sole discretion, that such other requirements are necessary or advisable in order to comply with local laws, rules and/or regulations or to facilitate the operation and administration of the Award and the Plan.  Such requirements may include (but are not limited to) requiring the Participant to sign any agreements or undertakings that may be necessary to accomplish the foregoing.

 

25.       Acceptance.  The Participant hereby acknowledges receipt of a copy of the Plan and this Agreement.  The Participant has read and understands the terms and provisions thereof, and accepts the PSUs subject to all of the terms and conditions of the Plan and this Agreement.

 

[Remainder of page intentionally left blank]

 

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PARTICIPANT

 

 

	
By:
    	
SIGNED BY ELECTRONIC SIGNATURE
    	
 
    
	
 
    	
<<Participant   Name>>
    	
 
    

 

THE PARTICIPANT MUST ELECTRONICALLY ACCEPT THIS AWARD WITHIN NINETY (90) DAYS AFTER THE GRANT DATE.  IF THE AWARD IS NOT ACCEPTED BY THE NINETIETH (90TH) DAY AFTER THE GRANT DATE, IT WILL BE DEEMED REJECTED AND THE AWARD WILL BE NULL AND VOID.

 

BY ELECTRONICALLY ACCEPTING THE AWARD, THE PARTICIPANT AGREES THAT (i) SUCH ACCEPTANCE CONSTITUTES THE PARTICIPANT’S ELECTRONIC SIGNATURE IN EXECUTION OF THIS AGREEMENT; (ii) THE PARTICIPANT AGREES TO BE BOUND BY THE PROVISIONS OF THE PLAN, THE AGREEMENT AND THE ADDENDUM; (iii) THE PARTICIPANT HAS REVIEWED THE PLAN, THE AGREEMENT AND THE ADDENDUM IN THEIR ENTIRETY, HAS HAD AN OPPORTUNITY TO OBTAIN THE ADVICE OF COUNSEL PRIOR TO ACCEPTING THE AWARD AND FULLY UNDERSTANDS ALL OF THE PROVISIONS OF THE PLAN, THE AGREEMENT AND THE ADDENDUM; (iv) THE PARTICIPANT HAS BEEN PROVIDED WITH A COPY OR ELECTRONIC ACCESS TO A COPY OF THE U.S. PROSPECTUS FOR THE PLAN AND THE TAX SUPPLEMENT TO THE U.S. PROSPECTUS FOR THE PARTICIPANT’S COUNTRY, IF APPLICABLE; AND (v) THE PARTICIPANT HEREBY AGREES TO ACCEPT AS BINDING, CONCLUSIVE AND FINAL ALL DECISIONS OR INTERPRETATIONS OF THE ADMINISTRATOR UPON ANY QUESTIONS ARISING UNDER THE PLAN, THE AGREEMENT AND THE ADDENDUM.

 

*                                         *                                         *                                         *                                         *

 

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ADDENDUM TO 
  PSU AWARD AGREEMENT

 

The Award is subject to the following additional terms and conditions as set forth in this addendum to the Agreement (the “Addendum”) to the extent the Participant resides and/or is employed in one of the countries addressed herein.  To the extent the Participant transfers residence and/or Employment to another country, the special terms and conditions for such country as reflected in this Addendum (if any) will apply to the Participant to the extent the Administrator determines, in its sole discretion, that the application of such terms and conditions is necessary or advisable in order to comply with local laws, rules and/or regulations, or to facilitate the operation and administration of the Award and the Plan (or the Administrator may establish alternative terms and conditions as may be necessary or advisable to accommodate the Participant’s transfer).  All defined terms as contained in this Addendum shall have the same meaning as set forth in the Plan and the Agreement.

 

AUSTRALIA

 

1.                                      Shareholder Approval Requirement.  To the extent the Participant is an individual whose termination benefits are subject to Sections 200 to 200J of the Corporations Act 2001, the Award is contingent upon the Company’s satisfaction of the shareholder approval requirements thereunder.  To the extent the Company does not or is unable to satisfy such requirements, the Award will be null and void, and the Participant will not have any claims against the Company to receive any payment or other benefits in lieu of the Award.

 

CANADA

 

1.                                      Settlement in Shares.  Notwithstanding anything to the contrary in the Agreement or the Plan, the Award shall be settled only in Shares (and may not be settled in the form of a cash payment).

 

2.                                      Use of English Language.  If the Participant is a resident of Quebec, by accepting the PSUs, the Participant acknowledges and agrees that it is the Participant’s wish that the Agreement, this Addendum, as well as all other documents, notices and legal proceedings entered into, given or instituted pursuant to the PSUs, either directly or indirectly, be drawn up in English.

 

Utilisation de l’anglais.  Si le Participant est un résident du Québec, en acceptant les Droits sur des Actions Liés à la Performance, le Participant reconnaît et accepte avoir requis que le Contrat, la présente Annexe, ainsi que tous autres documents, avis et procédures judiciaires, exécutés, donnés ou intentés en vertu des, ou liés directement ou indirectement aux, présents Droits sur des Actions Liés à la Performance soient rédigés en anglais.

 

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14

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