Document:

Exhibit 10.1

  

Exhibit
10.1

 

 

 

 

IBM

 

 

 

TERMS AND CONDITIONS OF YOUR
EQUITY AWARD: 

EFFECTIVE JUNE 8, 2016

 

 

 

 

 

 

 

 

 

 

 

  

 

 

  

	
  Terms and Conditions of Your Equity Award

  	 	 
	 	 	 
	
  Table of Contents

  	 	 
	 	 	 
	
  Page

  
	 	 
	
  1.    Introduction 

  	
  2

  
	 	 
	
  2.   How to Use This Document

  	
  2

  
	 	 
	
  3.   Definition of Terms

  	
  3

  
	 	 
	
  4.   Provisions that apply to all Award types and all countries

  	
  4

  
	 	 
	
  5.   Provisions that apply to all Award types but not all countries

  	
  5

  
	 	 
	
  6.  Provisions that apply to specific Award types for all countries

  	 
	
  a. Restricted Stock Units
  (“RSUs”) including Cash-Settled RSUs

  	 
	
  and Retention RSUs (“RRSUs”)

  	 	
  6

  
	
  i.   
  All RSUs

  	 	 
	
  ii. 
  RSUs Other Than Cash-Settled RSUs and Cash-Settled RRSUs

  
	
  iii. Cash-Settled
  RSUs including Cash-Settled RRSUs

  	 	 
	
  b. Restricted Stock

  	 	
  7

  
	
  c. Stock Options (“Options”)
  and Stock Appreciation Rights (“SARs”)

  	 	
  9

  
	
  i.    
  All Option and SAR Awards

  	 	 
	
  ii.   
  All SAR Awards

  	 	 
	
  d.
  Performance Share Units (“PSUs”)   

  	 	
  11

  
	
   

  7.   Provisions that apply to specific countries

  	
  12

  
	
  a. Denmark

  	 	 
	
  b. Israel

  	 	 

Page
1
of 12

  

Terms and Conditions of Your Equity Award

 

Introduction

This document provides you with the terms and
conditions of your Award that are in addition to the terms and conditions contained in your Equity Award
Agreement for your specific
Award. Also, your Award is subject to the terms and conditions in the governing
plan document; the applicable document is
indicated in your Equity Award Agreement and can be found at http://w3.ibm.com/hr/exec/comp/eq_prospectus.shtml. 

As an Award recipient, you can see a
personalized summary of all your outstanding equity grants in the “Personal
statement” section of the IBM executive compensation web site (http://w3.ibm.com/hr/exec/comp). This site also contains other information about long-term incentive awards, including
copies of the prospectus (the governing plan document). If you have additional questions and you are based in
the U.S., you can call the
Employee Service Center at 800-796-9876 (or 919-784-8646) weekdays, from 8:00 a.m. to 8:00 p.m. Eastern time (TTY
available at 800-426-6537). If you are based in another country you can call your local IBM Employee Service
Center.

How to Use This Document

Terms and conditions that apply to all awards
in all countries can be found on page 4. Review these in addition to any award- or country-specific terms and
conditions that may be
listed. Once you have reviewed these general terms, check in your Equity Award Agreement for any award-specific
and/or country-specific terms that apply to your Award.

Page
2
of 12

  

Terms and Conditions of Your Equity Award: 

Definition of Terms

The following are defined terms in the Long-Term
Performance Plan and/or your Equity Award
Agreement. These are provided for your information. See the Plan prospectus and your Equity Award Agreement for more details.

“Awards” -- The grant of any form of stock option, stock
appreciation right, stock or cash award, whether granted singly, in combination or in tandem, to a
Participant pursuant to such
terms, conditions, performance requirements, limitations and restrictions as
the Committee may establish in order to fulfill
the objectives of the Plan.

"Board" -- The Board of Directors of
International Business Machines Corporation ("IBM"). 

"Capital Stock" -- Authorized and issued or
unissued Capital Stock of IBM, at such par value as may be established from time to time.

“Committee”
-- The committee designated by the Board to administer the Plan.

"Company" -- IBM and its affiliates and
subsidiaries including subsidiaries of subsidiaries and partnerships and other business ventures in which IBM
has an equity interest. 

“Equity Award Agreement” – The document provided to the
Participant which provides the grant details.

"Fair Market Value" -- The average
of the high and low prices of Capital Stock on the New York Stock Exchange for the date in
question, provided that, if no sales of Capital Stock were made on said exchange on that date, the
average of the high and low prices of Capital Stock as reported for the most recent preceding day on which
sales of Capital Stock were made on said
exchange.

"Participant" -- An individual to whom an Award
has been made under the Plan. Awards may be made to any employee of, or any other individual providing
services to, the Company.
However, incentive stock options may be granted only to individuals who are employed by IBM or by a subsidiary
corporation (within the meaning of section 424(f) of the Code) of IBM, including a subsidiary
that becomes such after the adoption of the Plan. 

“Plan”
-- Any IBM Long-Term Performance Plan.

Page
3
of 12

  

Terms and Conditions of Your Equity Award: 

Provisions that apply to all Award types
and all countries

The following terms apply to all countries
and for all Award types (Restricted Stock Units, Cash-Settled Restricted Stock Units, Restricted Stock, Stock
Options, Stock Appreciation Rights
and Performance Share Units).

Cancellation and Rescission

All determinations regarding enforcement, waiver or
modification of the cancellation and rescission and other provisions of the
Plan and your Equity Award Agreement (including the provisions relating to termination of employment, death
and disability) shall
be made in IBM’s sole discretion. Determinations made under your Equity Award Agreement and the Plan need not be
uniform and may be made selectively among individuals, whether or not such
individuals are similarly situated.

You agree that the cancellation and
rescission provisions of the Plan and your Equity Award Agreement are reasonable and agree not
to challenge the reasonableness of such provisions, even where forfeiture of your Award is the penalty for
violation.

Jurisdiction, Governing Law, Expenses and Taxes

Your Equity Award Agreement shall be governed by the laws
of the State of New York,
without regard to conflicts or choice of law rules or principles. You submit to
the exclusive jurisdiction and venue of the
federal or state courts of New York, County of Westchester, to resolve all issues that may arise out of
or relate to your Equity Award Agreement. 

If any court of competent jurisdiction finds
any provision of your Equity Award Agreement, or portion thereof, to be unenforceable, that provision
shall be enforced to the maximum extent
permissible so as to effect the intent of the parties, and the remainder of your Equity Award Agreement shall
continue in full force and effect.

If you or the Company brings an action to
enforce your Equity Award Agreement and the Company prevails, you will pay all costs and expenses incurred by
the Company in connection with
that action and in connection with collection, including reasonable attorneys’ fees.

If the Company, in its sole discretion,
determines that it has incurred or will incur any obligation to withhold taxes as a result of
your Award, without limiting the Company’s rights under Section 9 of the Plan, the Company may withhold the number
of shares that it determines
is required to satisfy such liability and/or the Company may withhold amounts from other compensation to the extent
required to satisfy such liability under federal,
state, provincial, local, foreign or other tax laws. To the extent that such amounts are not withheld, the Company may require
you to pay to the Company any amount
demanded by the Company for the purpose of satisfying such liability.

Page
4
of 12

  

Terms and Conditions of Your Equity Award: 

Provisions that apply to all Award types
but not all countries

The following provision applies to all Award
types (Restricted Stock Units, Cash-Settled Restricted Stock Units, Restricted Stock, Stock Options, Stock
Appreciation Rights and
Performance Share Units) granted to all individuals in all countries except
those with a home country of Latin America, specifically: Argentina, Bolivia,
Brazil, Chile, Columbia, Costa Rica, Ecuador, Mexico,
Paraguay, Peru, Uruguay, and Venezuela. 

Non-Solicitation

In consideration of your Award, you agree
that during your employment with the Company and for two years following the
termination of your employment for any reason, you
will not directly or indirectly hire, solicit or make an offer to any employee of the Company to be employed or perform
services outside of the Company.
Also, you agree that during your employment with the Company and for one year following the termination of your
employment for any reason, you will not directly or indirectly, solicit, for
competitive business purposes, any customer of the Company with which you were
involved as part of your job responsibilities during the last year of your employment with the Company. By
accepting your Award, you acknowledge
that the Company would suffer irreparable harm if you fail to comply with the foregoing, and that the Company would be
entitled to any appropriate relief, including
money damages, equitable relief and attorneys’ fees.

Page
5
of 12

  

Terms and Conditions of Your Equity Award: 

Provisions that apply to specific Award
types for all countries

a. Restricted Stock Units (“RSUs”) including
Cash-Settled RSUs and Retention RSUs (“RRSUs”)

All references in this document to RSUs
include RRSUs, unless explicitly stated otherwise 

i. All RSUs

Termination of Employment including Death, Disability and Leave of Absence 

Termination
of Employment

In the event you cease to be an employee (other than on
account of death or are disabled
as described in Section 12 of the Plan) prior to the Vesting Date(s) set in your Equity Award Agreement, all then
unvested RSUs, including RRSUs, under your Award shall be canceled.

However, your unvested and/or outstanding RSUs, but not
RRSUs, will continue to
vest upon the termination of employment if all of the following criteria are
met:

·         
You are on the performance team, or any successor
team thereto, at the time of
termination of employment;

·         
You have completed at least one year of
active service since the award date of grant;

·         
You have reached age 55 with 15 years of
service at the time of termination of employment (age 60 with 15 years of service for the Chairman and
CEO); and 

·         
Appropriate senior management, the Committee
or the Board, as appropriate, do
not exercise their discretion to cancel or otherwise limit the vesting of the RSUs. 

Death or
Disability

Upon your death all RSUs covered by this Agreement shall
vest immediately and your
Vesting Date shall be your date of death. If you are disabled as described

in Section 12 of the Plan, your RSUs shall continue to
vest according to the terms
of your Award.

Leave of Absence

In the event of a management approved leave of absence,
any unvested RSUs shall
continue to vest as if you were an active employee of the Company, subject to the terms in this document and your Equity
Award Agreement. If you return to

Page
6
of 12

  

Terms and Conditions of Your Equity Award: 

Provisions that apply to specific Award
types for all countries

active status, your unvested RSUs will
continue to vest in accordance with the terms in this document and your Equity Award Agreement.

Dividend Equivalents

IBM shall not pay dividend equivalents on
cash-settled or stock-settled unvested RSU awards.

ii.     
RSUs Other Than Cash-Settled RSUs
and Cash-Settled RRSUs

Settlement of Award

Subject to Sections 12 and 13 of the Plan and
the section "Termination of Employment including Death, Disability and Leave of Absence" above,
upon the Vesting Date(s), or as soon thereafter as may
be practicable but in no event later than March 15 of the following calendar
year, IBM shall make a payment to Participant in shares of Capital Stock equal to the number of vested
RSUs, subject to any applicable tax withholding
requirements as described in Section 9

of the Plan, and the respective RSUs shall thereupon be canceled.
RSUs are not shares of Capital Stock and do
not convey any stockholder rights.

iii.     Cash-Settled RSUs including Cash-Settled RRSUs

Settlement of Award

Subject to Sections 12 and 13 of the Plan and
the section entitled "Termination of Employment including Death,
Disability and Leave of Absence" above, upon the Vesting Date(s), or as soon thereafter as may
be practicable but in no event later than March 15 of the following calendar year, the Company shall make a payment to Participant in cash equal to the
Fair Market Value of the vested

RSUs, subject to any applicable tax
withholding requirements as described in Section 9 of the Plan, and the respective RSUs shall thereupon be
canceled. Fair Market Value
will be calculated in your home country currency at the exchange rate on the applicable Vesting Date
using a commercially reasonable measure of
exchange rate. RSUs are not shares of Capital Stock and do not convey any stockholder rights.

b. Restricted Stock

Settlement of Award

Subject to Sections 12 and
13 of the Plan and the paragraph entitled

"Termination of Employment including
Death, Disability or Leave of Absence" below, upon
the Vesting Date(s), or as soon thereafter as may be practicable but in no event later than March 15 of the following
calendar year, the shares of Restricted
Stock awarded under your Equity Award Agreement will be deliverable

to
you, subject to any applicable tax withholding requirements as described in Section 9 of the Plan.

 

Page
7
of 12

  

Terms and Conditions of Your Equity Award: 

Provisions that apply to specific Award
types for all countries

Termination of Employment including Death, Disability and Leave of Absence 

Termination
of Employment

In the event you cease to be an employee
(other than on account of death or are disabled as described in Section 12 of the Plan) prior to the Vesting
Date(s) in

your Equity Award Agreement, all then
unvested shares of Restricted Stock under your Award shall be canceled (unless
your Equity Award Agreement provides
otherwise).

Death or
Disability

Upon your death all unvested shares of
Restricted Stock covered by your Equity Award
Agreement shall vest immediately and your Vesting Date shall be your date of death. If you are disabled as described
in Section 12 of the Plan, your unvested shares of Restricted Stock shall
continue to vest according to the terms of your Equity Award Agreement.

Leave of Absence

In the event of a management approved leave of
absence, any unvested shares of
Restricted Stock shall continue to vest as if you were an active employee of

the Company, subject to the terms in this
document and your Equity Award Agreement.
If you return to active status, your unvested shares of Restricted Stock will continue to vest in accordance
with the terms in this document and your Equity Award Agreement.

Dividends and
Other Rights

During the period that the Restricted Stock is
held by IBM hereunder, such stock

will remain on the books of IBM in your name,
may be voted by you, and any applicable
dividends shall be paid to you. Shares issued in stock splits or similar events which relate to Restricted Stock then
held by IBM in your name shall be issued in your name but shall be held by IBM under the terms hereof.

Transferability

Shares of Restricted Stock awarded under
your Equity Award Agreement cannot be sold,
assigned, transferred, pledged or otherwise encumbered prior to the vesting of your Award as set forth in your Equity
Award Agreement and any such sale,
assignment, transfer, pledge or encumbrance, or any attempt thereof, shall be
void.

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8
of 12

  

Terms and Conditions of Your Equity Award: 

Provisions that apply to specific Award
types for all countries

c. Stock Options (“Options”) and Stock
Appreciation Rights (“SARs”) 

i. All Option and SAR Awards

Termination of Employment including Death, Disability and Leave of Absence 

Termination
of Employment

In the event you cease to be an employee
(other than on account of death or are disabled as described in Section 12 of the Plan):

·       
Any Options or SARs that are not exercisable
as of the date your employment
terminates shall be canceled immediately (unless your Equity Award Agreement provides otherwise), and

·       
Any Options or SARs that are exercisable as
of the date your employment terminates
(other than for cause) will remain exercisable for 90 days (not three months) after the date of termination,
after which any unexercised Options
or SARs are canceled; provided, however, if you are a banded executive when your employment with the Company
terminates (other than
for cause) after you have attained age 55 and completed at least 15 years of service with the Company at the
time of termination, any Options or SARs that are exercisable as of the date your employment terminates shall remain exercisable for the full term
as in your Equity Award Agreement (unless your Equity Award Agreement provides
otherwise).

Death or
Disability

In the event of your death, all Options or
SARs shall become fully exercisable and remain exercisable for their full term.

In the event you are disabled (as described
in Section 12 of the Plan), any unvested Options or SARs shall continue to vest and be exercisable.

Page
9
of 12

  

Terms and Conditions of Your Equity Award: 

Provisions that apply to specific Award
types for all countries

Leave of Absence

In the event of a management approved leave of absence,
any unvested Options or SARs
shall continue to vest and be exercisable as if you were an active employee of the Company, subject to
the terms in this document and your
Equity Award Agreement. If you return to active status, your Options or SARs will continue to vest and be exercisable
in accordance with their terms. If you do not return to active status,

·         
Your unvested Options or SARs will be
canceled immediately; and

·         
Your vested Options or SARs will be canceled
on the later of the 91st day following your last day of active employment or the date of the
termination of your leave of
absence; provided, however, if you are a banded executive when your employment terminates (other than for
cause) after you have attained
age 55 and completed at least 15 years of service with the Company at the time of termination, any
Options or SARs that are exercisable
as of the date your employment terminates shall remain exercisable for the full term as in your
Equity Award Agreement.

Termination of
Employment for Cause

If your employment terminates for cause, all exercisable
and not exercisable Options
or SARs are canceled immediately.

ii. All SAR Awards

Settlement of Award

Upon exercise, the Company shall deliver an aggregate
amount, in cash, equal
to the excess of the Fair Market Value of a share of Capital Stock on the date of exercise over the Exercise Price
set forth in your Equity Award Agreement multiplied by the number of SARs
exercised, subject to any applicable
tax withholding requirements as described in Section 9 of the Plan. The value of the Award will be calculated in
your home country currency at the
exchange rate on the date the Award becomes fully vested using a commercially reasonable measure of exchange
rate.

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10
of 12

  

Terms and Conditions of Your Equity Award: 

Provisions that apply to specific Award
types for all countries

d. Performance
Share Units (“PSUs”)

Termination of Employment, including Death and Disability, and Leave of
Absence 

Termination
of Employment and Leave of Absence

If you cease to be an active, full-time employee for any
reason (other than on account
of death or are disabled as described in Section 12 of the Plan) before the Date of Payout (in the case of a
recipient in the United States, at year end of

the applicable PSU Performance Period), all PSUs are
canceled immediately provided,
however, if you are a banded executive when your employment terminates (other
than for cause) after you have attained age 55, completed at least 15 years of
service with the Company at the time of termination, and completed at least one year of active
service during the PSU Performance Period (as set forth in your Equity Award Agreement), the PSUs granted

hereunder shall be paid out on the Date of Payout (as set
forth in your Equity Award
Agreement) based on IBM performance over the entire applicable

Performance Period(s), in an amount that will be prorated
for the number of months
completed as an active executive during the PSU Performance Period, adjusted for the performance score.

However, your unvested PSUs will continue to
vest upon termination of employment
or the time you cease to be an active, full-time employee if all of the
following criteria are met:

You are on the performance team, or any
successor team thereto, at the time of termination of employment or the time you cease to be an active,
full-time employee; 

You have completed at least one year of
active service during the PSU Performance
Period (as set forth in your Equity Award Agreement);

You have reached age 55 with 15 years of service at the
time of termination of
employment or the time you cease to be an active, full-time employee (age 60
with 15 years of service for the Chairman and CEO);

The Committee has certified that all performance
conditions have been met; and 

Appropriate senior management, the Committee or the
Board, as appropriate,

do not exercise their discretion to cancel or
otherwise limit the payout.

Death or
Disability

Prior to the Date of Payout, (i) in the event of your
death or (ii) if you are disabled (as described in Section 12 of the Plan), all PSUs shall continue to
vest

according to the terms of your Equity Award
Agreement and the PSUs will be paid out at the end of the Performance Period
based on IBM performance over the
entire applicable Performance Period(s).

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Terms and Conditions of Your Equity Award: Provisions that apply to specific countries 

 

a. Denmark

i. All Awards

Non-Solicitation

The following part of the above non-solicitation
provision does not apply to those individuals with the home country of Denmark: “In consideration of your
Award,

you agree that during your employment with the Company
and for two years following
the termination of your employment for any reason, you will not directly or indirectly hire, solicit or make an offer
to any employee of the Company to be employed or perform services outside of the Company.”

 

 

            b. Israel 

 

i. All Awards

 

Data Privacy

In addition to the data privacy provisions in your Equity
Award Agreement, you agree that
data, including your personal data, necessary to administer this Award may be
exchanged among IBM and its subsidiaries and affiliates as necessary (including
transferring such data out of the country of origin both in and out of the
EEA), and with any vendor engaged by IBM to administer this Award.

Page
12
of 12Exhibit

Exhibit 10.1

THIS DOCUMENT CONSTITUTES PART OF A 
PROSPECTUS COVERING SECURITIES THAT HAVE BEEN 
REGISTERED UNDER THE SECURITIES ACT OF 1933 
 
ANIXTER INTERNATIONAL INC. 2010 STOCK INCENTIVE PLAN 
2016 PERFORMANCE UNIT GRANT AGREEMENT

This Grant is made as of the 1st day of March, 2016 (“Date of Grant”) by Anixter International Inc., a Delaware corporation (the “Corporation”), to [FirstName] [LastName] (“Participant”) pursuant to the Anixter International Inc. 2010 Stock Incentive Plan (the “Plan”). 
Section 1.  Grant of Stock Units.  On the terms and conditions stated herein, the Corporation hereby grants to Participant _____ Performance Units (the “Units”). 
Section 2.  Vesting and Forfeiture.  The Units are subject to a three-year performance period beginning on January 1, 2016 and ending on December 31, 2018 (the “Performance Period”). The Performance Period shall consist of three “Performance Cycles”:  (a) the first calendar year of the Performance Period (the “First Performance Cycle”); (b) the first two years of the Performance Period (the “Second Performance Cycle”); and (c) the three-year Performance Period (the “Third Performance Cycle”). 
(a)         Except as described in (b) and (c) below and in Section 7, the Units shall vest on the third anniversary of the date of grant if the Participant remains in continuous employment with the Corporation or its affiliates through such third anniversary.  
(b)         If prior to the third anniversary of the date of grant Participant’s employment with the Corporation and its affiliates terminates for any reason other than Cause, Participant will vest in one-third of the Units if the employment termination occurs on or after the first anniversary of the date of grant and prior to the second anniversary of the date of grant, or two-thirds of the Units if the employment termination occurs on or after the second anniversary of the date of grant and prior to the third anniversary of the date of grant.  The Units that vest shall convert to shares of stock in accordance with Section 3 below.  The Units that do not vest in accordance with this Section 2(b) shall be forfeited.
For purposes of this Section 2(b) “Cause” means (i) Participant’s willful and continued failure to substantially perform Participant’s employment duties in any material respect (other than such failure resulting from physical or mental incapacity), after a written demand for substantial performance is delivered to Participant that specifically identifies the manner in which the Corporation believes Participant has failed to perform his or her duties, and after Participant has failed to resume substantial performance of Participant’s duties on a continuous basis within 30 days of receiving such demand; (ii) the Committee’s determination, in good faith, that Participant has engaged, during the performance of his or her duties, in significant objective acts or omissions constituting willful misconduct or gross negligence relating to the business of the Corporation that are demonstrably and materially injurious to the Corporation or (iii) a plea of guilty or nolo contendere by Participant, or conviction of Participant, for a felony under federal or state law.  
(c)         If prior to the third anniversary of the date of grant (i) Participant’s employment with the Corporation and its affiliates is terminated for Cause or (ii) any transfer of the Units shall be made in violation of this Agreement, the Units and any distributions thereon shall be 

forfeited and, in the case of transfer, may be reacquired by the Corporation, upon notice to Participant or any transferee, at no cost to the Corporation. 
Section 3.  Adjustment and Conversion of Units.
(a)         The number of Units subject to the Grant that vest in accordance with Section 2(a) above shall be adjusted by the Committee after the end of the Performance Period based on the level of achievement of the previously established performance goal (the “Performance Goal”) for each Performance Cycle in the Performance Period, as described on Exhibit A attached hereto.
(b)         The number of Units subject to the Grant that vest in accordance with Section 2(b) above shall be adjusted by the Committee following the date of Participant’s termination of employment based on the level of achievement of the Performance Goal for the relevant Performance Cycle set forth in Section 2(b), as described on Exhibit A attached hereto.  
(c)         The number of Units adjusted pursuant to (a) or (b) above (rounded to the nearest whole number) shall convert to the same number of shares of stock on the date of such adjustment and shall be distributed to Participant no later than March 15 of the calendar year in which such adjustment occurs, or if later, 30 days following Participant’s termination of employment.
Section 4.  Right of Recoupment.  The Grant of the Units is expressly made subject to and conditioned on the “Right of Recoupment” provisions in the Plan.
Section 5.  Prohibited Transfers.  Any sale, hypothecation, encumbrance or other transfer of Units is prohibited unless the same shall have been consented to in advance in writing by the Corporation (which consent may be withheld in the sole discretion of the Corporation). 
Section 6.  Withholding Taxes.  As a condition to the grant, vesting or conversion of the Units acquired hereunder, the Corporation shall withhold the number of whole Units required for the satisfaction of any Federal, state or local withholding tax obligations that may arise in connection therewith. 
Section 7.  Change in Control.  Upon a Change in Control as defined in the Plan, the Units shall become immediately and fully vested.  The Units shall be adjusted by the Committee as follows:
(a)         If the Change in Control occurs prior to the last day of the First Performance Cycle, no Units shall be adjusted.
(b)         If the Change in Control occurs on or after the last day of the First Performance Cycle and prior to the last day of the Second Performance Cycle, one-third of the Units shall be adjusted based on the level of achievement of the Performance Goal through the end of the First Performance Cycle, and the remaining Units shall not be adjusted.
(c)         If the Change in Control occurs on or after the last day of the Second Performance Cycle and prior to the last day of the Performance Period, (i) one third of the Units shall be adjusted based on the level of achievement of the Performance Goal through the end of the First Performance Cycle, (ii) one-third of the Units shall be adjusted based on the level of attainment 

2

of the Performance Goal through the end of the Second Performance Cycle, and the remaining Units shall not be adjusted.
(d)         The number of Units adjusted pursuant to (a), (b) or (c) above (rounded to the nearest whole number) shall convert to the same number of shares of stock on the date of such adjustment and shall be distributed to Participant no later than March 15 of the calendar year in which such adjustment occurs, or if later, 30 days following the Change in Control.
Section 8.  Retention of Certificate and Any Distributions.  The Treasurer or any Assistant Treasurer shall retain on behalf of Participant, until the Units are converted, all certificates and distributions pertaining to the Units, including dividend equivalents equal in value to the dividends that would have been paid had the Participant been the actual owner of the number of shares of stock converted pursuant to Section 3 or 7 above. Upon conversion and subject to the withholding of the number of Units sufficient for payment of withholding tax, the certificates and all distributions (with or without interest on any cash distributions, as determined from time to time by the Corporation in its sole discretion) shall be distributed to Participant at the same time the related shares are distributed.
Section 9.  Distributions on Participant’s Death.  Any distribution made pursuant to Sections 3, 7 or 8 following Participant’s death shall be made to Participant’s executors or administrators or any person or persons who have acquired the right to receive such distributions by Participant’s bequest or inheritance.
Section 10.  Section 409A.  Notwithstanding the provisions of Section 8 above, if at the time of the Participant’s termination of employment for reasons other than death the Participant is a “key employee” as determined in accordance with the procedures set forth in Treas. Reg. §1.409A-1(i), any distribution to the Participant pursuant to this Agreement that is subject to Section 409A of the Internal Revenue Code shall not be made until six months following the Participant’s termination of employment, or if earlier, the Participant’s subsequent death.
Section 11.  Parties in Interest.  This Agreement shall be binding upon and shall inure to the benefit of the parties hereto, their respective heirs, executors, administrators, successors, assigns and personal representatives. 
Section 12.  Specific Performance.  In the event of a breach of this Agreement by any party hereto, any other party hereto shall be entitled to secure specific performance of this Agreement in any court of competent jurisdiction. 
Section 13.  Notices, etc.  All notices and other communications required or permitted hereunder will be in writing and will be mailed by first-class mail, postage prepaid, addressed (a) if to Corporation at: 
2301 Patriot Boulevard
Glenview, Illinois 60026
Attn: General Counsel

or at such address as Corporation will have furnished to Participant in writing, or (b) if to Participant at: 
then current address in the records of Corporation

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or at such other address as Participant will have furnished to Corporation in writing in accordance with this Section. 
All notices and other communications to be given hereunder shall be given in writing. Except as otherwise specifically provided herein, all notices and other communications hereunder shall be deemed to have been given if personally delivered to the party being served, or two business days after mailing thereof by registered mail, return receipt requested, postage prepaid, to the requisite address set forth above (until notice of change thereof is served in the manner provided in this Section). 
Section 14.  No Right to Employment.  Nothing in this Agreement or in the act of granting the Units to Participant shall give Participant any rights to continue to be employed by Corporation. 
Section 15.  Plan Document Governs.  The Plan provides a complete description of the terms and conditions governing the Grant.  If there is any inconsistency between the terms of this Agreement and the terms of the Plan, the Plan’s terms shall govern.  All capitalized terms shall have the meanings ascribed to them in the Plan, unless specifically set forth otherwise herein.
IN WITNESS WHEREOF, the Corporation has caused this Grant to be executed on its behalf by its officer duly authorized to act on behalf of the Corporation. 
ANIXTER INTERNATIONAL INC.
a Delaware corporation

By: _____________________________                
Its:  Executive Vice President - Finance 
       and Chief Financial Officer    

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EXHIBIT A
Anixter International Inc. 
Performance Unit Grant Agreement
2016 Performance Unit Goal
		
	Performance Goal:
	The Corporation’s total shareholder return (“TSR”) relative to the TSR of the S&P MidCap 400® Index (“Relative TSR”).1 

     After the end of the Performance Period (December 31, 2018), the number of Units subject to the Grant will be adjusted as follows:
(1) 1/3 of the Units will be adjusted based on the Corporation’s Relative TSR for the First Performance Cycle (January 1, 2016-December 31, 2016);
(2) 1/3 of the Units will be adjusted based on the Corporation’s Relative TSR for the Second Performance Cycle (January 1, 2016-December 31, 2017); and
(3)  1/3 of the Units will be adjusted based on the Corporation’s Relative TSR for the Third Performance Cycle (January 1, 2016-December 31, 2018).
The number of Units subject to each Performance Cycle will be multiplied by the Payout Percentage set forth below, and the aggregate number of adjusted Units will be converted to shares.
	
		
	TSR Percentile Rank
	Payout Percentage

	75th Percentile and above
	150%

	50th Percentile and above, up to 75th Percentile
	100%

	25th Percentile and above, up to 50th Percentile
	50%

	Below 25th Percentile
	0%

Performance between listed rankings will be adjusted on straight-line interpolation.

         In the event of a termination of employment as described in Section 2(b) of the Agreement, Relative TSR will be determined for the relevant Performance Cycle (the First Performance Cycle in the case of a termination occurring on or after the first anniversary of the date of grant and prior to the second anniversary of the date of grant and the Second Performance Cycle in the case of a termination occurring on or after the the second anniversary of the date of grant and prior to the third anniversary of the date of grant), and the Units subject to each such relevant Performance Cycle will be adjusted pursuant to the table above. The Units subject to a Performance Cycle not then ended or ended but prior to the immediately following anniversary of the date of grant will be forfeited.
________________________
1 For purposes of calculating TSR, the beginning stock price shall be the volume weighted average price for the 20 trading days prior to the beginning of the Performance Period, the ending stock price shall be the volume weighted average price for the 20 trading days prior to the end of the applicable Performance Cycle, and dividends shall be deemed reinvested on the related ex-dividend date. 

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In the event of a Change in Control as described in Section 7 of the Agreement, Relative TSR will be determined for each Performance Cycle ending on or prior to the date of the Change in Control, and the Units subject to each such Performance Cycle will be adjusted pursuant to the table above. The Units subject to an outstanding Performance Cycle will be paid but not adjusted.

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