Document:

SunOpta Inc.: Exhibit 10.3 - Filed by newsfilecorp.com

    

    
        
            Exhibit 10.3

        

        STOCK OPTION AWARD AGREEMENT

        This Stock Option Award Agreement (this "Agreement") is entered into as of April 1, 2019 (the "Award Date") by and between SunOpta Inc., a Canadian corporation (the "Company"), and Joseph D. Ennen (the "Optionee").

        The Company and the Optionee agree as follows:

        1. Grant.  The Company hereby grants to the Optionee an option to purchase 960,061 common shares of the Company on the terms and conditions as set forth herein (the "Options").  The Options will not be treated as Incentive Stock Options as defined in Section 422 of the Internal Revenue Code of 1986, as amended, and are therefore Non-Statutory Stock Options.  The Options are not, and shall not be deemed to be, granted under or subject to the Company's Amended 2013 Stock Incentive Plan or any other plan.  The Options are granted pursuant to the terms of the Executive Employment Agreement dated March 29, 2019 between the Company and the Optionee (the "Employment Agreement") and in the event of any inconsistency between this Agreement and the Employment Agreement as to timing of vesting or any other provision, the terms of the Employment Agreement shall control and apply.

        2. Exercise Price.  The exercise price of the Option is $3.36 per share (the "Exercise Price").

        3. Vesting.  The Options will vest on the third anniversary of Optionee's first day of employment subject to the Optionee's continued employment during the entire vesting period, except as otherwise provided in Section 6 or the Employment Agreement. 

        4. Time of Exercise of Option.  Except as provided in Section 6, the Option may not be exercised prior to the vesting date set forth in Section 2.  Following such date and until it expires or is terminated as provided in Sections 6 or 11, this Option may be exercised from time to time to purchase whole shares.  

        5. Expiration Date.  The Options shall expire on April 1, 2029 unless earlier terminated pursuant to the provisions hereof (the "Expiration Date").  

        6. Termination of Employment.

        6.1 General Rule.  Except as provided in this Section 6 or the Employment Agreement, the Options may not be exercised unless at the time of exercise the Optionee is employed by the Company and shall have been so employed continuously from the Award Date through the end of the vesting period.  For purposes of this Agreement, the Optionee is considered to be employed by the Company if the Optionee is employed by the Company or any parent or subsidiary of the Company (an "Employer").

        6.2 Termination Generally.  If the Optionee's employment by the Company terminates for any reason other than as provided in Sections 6.3 or 6.4 below, the Options may be exercised at any time before the Expiration Date or the expiration of 90 days after the date of termination, whichever is the shorter period, but only if and to the extent the Optionee was entitled to exercise the Option at the date of termination, and all unvested Options shall be forfeited and canceled.

    

    

    

        6.3 Total Disability.  If the Optionee's employment with the Company is terminated at any time because of Total Disability (as defined in the Employment Agreement), any unvested Options shall immediately vest as of the date of termination and the Options may be exercised at any time before the Expiration Date or the expiration of 12 months after the date of termination, whichever is the shorter period.  

        6.4 Death.  If the Optionee's employment with the Company is terminated at any time because of death, any unvested Options shall immediately vest as of the date of termination and the Options may be exercised at any time before the Expiration Date or the expiration of 12 months after the date of termination, whichever is the shorter period, and only by the Optionee's personal representative or the person or persons to whom the Optionee's rights under the Options shall pass by the Optionee's will or by the laws of descent and distribution of the state or country of domicile at the time of death.

        6.5 Failure to Exercise Options.  To the extent that following termination of employment, the Options are not exercised within the applicable periods described above (or the Employment Agreement, if applicable), all further rights to purchase shares pursuant to the Options shall cease and terminate.

        7. Leave of Absence.  Absence on leave approved by the Employer or on account of illness or disability shall not be deemed a termination or interruption of employment.  Vesting of the Options shall continue during a medical, family or military leave of absence, whether paid or unpaid, and vesting of the Options shall be suspended during any other unpaid leave of absence.

        8. Method of Exercise of Option; Tax Withholding.  The Options may be exercised by notice from the Optionee to the Company through the Company's third-party administrator, which is currently Solium Shareworks, of the Optionee's binding commitment to purchase shares, specifying the number of shares the Optionee desires to purchase under the Options, which may not be more than 30 days after delivery of the notice, and, if required to comply with the Securities Act of 1933, containing a representation that it is the Optionee's intention to acquire the shares for investment and not with a view to distribution. On or before the date specified for completion of the purchase, the Optionee must pay the Company the full purchase price of those shares in cash or by certified check, or in whole or in part in common shares of the Company valued at fair market value. The fair market value of common shares provided in payment of the purchase price shall be the closing price of the common shares last reported on Nasdaq before the time payment in common shares are made or, if earlier, committed to be made, if the Common Stock is publicly traded, or another value of the common shares as specified by the Company.  No shares shall be issued until full payment for the shares has been made, including all amounts owed for tax withholding.  The Optionee shall, immediately upon notification of the amount due, if any, pay to the Company in cash or by certified check amounts necessary to satisfy any applicable federal, state and local tax withholding requirements.  If additional withholding is or becomes required beyond any amount deposited before delivery of the electronic transfer of the shares, the Optionee shall pay such amount to the Company, in cash or by certified check, on demand.  If the Optionee fails to pay the amount
demanded, the Company or the Employer may withhold that amount from
other amounts payable to the Optionee, including salary, subject to
applicable law.  

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9. Nontransferability.  Except as provided in this Section 9 the Options are nonassignable and nontransferable by the Optionee, either voluntarily or by operation of law, and during the Optionee's lifetime, the Options are exercisable only by the Optionee.  The Options may be transferred by will or by the laws of descent and distribution of the state or country of the Optionee's domicile at the time of death.

        10. Stock Splits, Stock Dividends.  If the outstanding common shares of the Company are hereafter increased or decreased or changed into or exchanged for a different number or kind of shares or other securities of the Company by reason of any stock split, combination of shares, dividend payable in shares, recapitalization or reclassification, appropriate adjustment shall be made by the Company in (i) the number and kind of shares subject to the Options, or the unexercised portion thereof, and (ii) the Exercise Price per share, so that the Optionee's proportionate interest before and after the occurrence of the event is maintained.  Notwithstanding the foregoing, the Company shall have no obligation to effect any adjustment that would or might result in the issuance of fractional shares, and any fractional shares resulting from any adjustment may be disregarded or provided for in any manner determined by the Company.  Any such adjustments made by the Company shall be conclusive.

        11. Mergers, Etc.  If, while any Options are outstanding, there shall occur a merger, consolidation, amalgamation, plan of exchange or other transaction, in each case involving the Company pursuant to which outstanding shares are converted into cash or other stock, securities or property (each, a "Transaction"), the Board of Directors, may, in its sole discretion, provide that the remaining outstanding Options shall be treated in accordance with any of the following alternatives:  

        (i) The remaining Options shall be converted into options to purchase stock of the surviving or acquiring corporation in the Transaction, which Options may not be exercised, in whole or in part, before the completion of the vesting period (unless otherwise accelerated as determined by the Board of Directors in its sole discretion) and shall be subject to continued employment of the Optionee by the Company or any acquiring or surviving company through such vesting date, for a total purchase price equal to the total price applicable to the unexercised portion of the Options, and with the amount and type of shares subject thereto and exercise price per share thereof to be conclusively determined by the Board of Directors, taking into account the relative values of the companies involved in the Transaction and the exchange rate, if any, used in determining shares of the surviving corporation to be held by holders of common shares of the Company following the Transaction in accordance with Treas. Reg. § 1.409A-1(b)(5)(v)(D), and disregarding fractional shares; 

        (ii) The remaining Options shall be cancelled effective immediately prior to the consummation of the Transaction, and, in full consideration of the cancellation, the Company or any acquiring or surviving company shall pay to the Optionee upon the vesting date (unless otherwise accelerated by the terms of the Employment Agreement or as determined by the Board of Directors in its sole discretion), subject to continued employment
 of the Optionee by the Company or any acquiring or surviving company
through such date, an amount in cash, for each share subject to the
Options, equal to the excess of (A) the value, as determined by the
Board of Directors, of the property (including cash and securities)
received by the holder of a common share of the Company as a result of
the transaction over (B) the Exercise Price; or

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        (iii) The remaining Options shall become exercisable for 100 percent of the shares subject to the Options effective as of the consummation of the Transaction, and the Board of Directors shall approve some arrangement by which the Optionee shall have a reasonable opportunity to exercise all such Options effective as of the consummation of the Transaction or otherwise realize the value of the Options, as determined by the Board of Directors.  Any Options that are not exercised in accordance with procedures approved by the Board of Directors shall terminate. 

        In the event the Board of Directors opts that the remaining outstanding Options shall be treated in accordance with (i) above, then the surviving or acquiring corporation in the Transaction must agree to all relevant provisions of the Employment Agreement pertaining to the Options.

        12. Conditions on Obligations.  The Company shall not be obligated to issue common shares upon exercise of the Options if the Company is advised by its legal counsel that such issuance would violate applicable state or federal laws, including securities laws.  The Company will use its reasonable best efforts to take steps required by state or federal law or applicable regulations in connection with issuance of shares upon exercise of the Options. 

        13. No Right to Employment.  Nothing in this Agreement shall (i) confer upon the Optionee any right to be continued in the employment of an Employer or interfere in any way with the Employer's right to terminate the Optionee's employment at will at any time, for any reason, with or without cause, or to decrease the Optionee's compensation or benefits, or (ii) confer upon the Optionee any right to be retained or employed by the Employer or to the continuation, extension, renewal or modification of any compensation, contract or arrangement with or by the Employer. 

        14. Successors of Company.  This Agreement shall be binding upon and shall inure to the benefit of any successor of the Company but, except as provided herein, the Option may not be assigned or otherwise transferred by the Optionee. 

        15. Rights as a Shareholder.  The Optionee shall have no rights as a shareholder with respect to any shares of Common Stock until the date the Optionee becomes the holder or record of those shares.  No adjustment shall be made for dividends or other rights for which the record date occurs before the date the Optionee becomes the holder of record.

        16. Amendments.  The Company may at any time amend this Agreement if the amendment does not adversely affect the Optionee and no amendment that does adversely affect the Optionee shall be valid or binding.  Otherwise, this Agreement may not be amended without the written consent of the Optionee and the Company.

        17. Governing Law; Jurisdiction and Venue.  This Agreement will be interpreted under the laws of the state of Minnesota, exclusive of choice of law rules.  Any action or proceeding by either of
the parties to enforce this Agreement shall be brought only in a state
or federal court located in the state of Minnesota.

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        18. Complete Agreement.  This Agreement and the Employment Agreement constitute the entire agreements between the Optionee and the Company, both oral and written concerning the matters addressed herein, and all prior agreements or representations concerning the matters addressed herein, whether written or oral, express or implied, are terminated and of no further effect.

        19. Electronic Delivery of Prospectus.  The Optionee consents to the electronic delivery of any prospectus and related documents relating to the Options in lieu of mailing or other form of delivery.

        	
                                        SUNOPTA INC.	
                                         	
                                        RECIPIENT
	
                                         	
                                         	
                                         
	
                                        
                                        By: /s/ Jeff Gough

                                        Name: Jeff Gough

                                        Title: CHRO

                                    	
                                         

                                    	
                                        
                                        /s/ Joseph D. Ennen

                                        Joseph D. Ennen

                                    

        5SunOpta Inc.: Exhibit 10.4 - Filed by newsfilecorp.com

    

    
        
            Exhibit 10.4

        

        PERFORMANCE SHARE UNIT AWARD AGREEMENT

        This Performance Share Unit Award Agreement (the "Agreement") is entered into as of April 1, 2019 between SunOpta Inc., a Canadian corporation (the "Company"), and Joseph D. Ennen (the "Recipient").

        On April 1, 2019 (the "Award Date") the Company's Board of Directors (the "Board") authorized the grant of performance share units to Recipient pursuant to the terms of this Agreement. Recipient desires to accept the award subject to the terms and conditions of this Agreement. This award is not, and shall not be deemed to be, granted under or subject to the terms of the Company's Amended 2013 Stock Incentive Plan or any other plan. This award is granted pursuant to the terms of the Executive Employment Agreement dated March 29, 2019 between the Company and Recipient (the "Employment Agreement") and in the event of any inconsistency between this Agreement and the Employment Agreement as to timing of vesting or any other provision, the terms of the Employment Agreement shall control and apply.

        NOW, THEREFORE, the parties agree as follows:

        1. Award.  The Company grants to Recipient 1,785,714 performance share units ("PSUs") with respect to the Company's common shares ("Common Shares").  Subject to the terms and conditions of this Agreement and the Employment Agreement, the Company shall issue to Recipient the number of Common Shares of the Company corresponding to the number of PSUs determined under this Agreement based on (a) the performance of the Company as described in Section 2 and (b) in the case of PSUs vesting pursuant Section 2.1, Recipient's continued employment through the date the applicable PSUs subject to such section vest, and in the case of PSUs vesting pursuant to Section 2.2, Recipient's continued employment through the end of the Performance Period (as defined below) (a "Vesting Event") pursuant to Section 3.

        2. Performance Conditions.

        2.1 The vesting of 892,857 of the PSUs, if vesting occurs at all, is dependent on the Common Shares achieving a volume weighted average trading price set forth below in each case for 20 consecutive trading days (the "Stock Price Hurdles") during the period commencing on the Award Date and ending on December 31, 2022 (the "Performance Period") as provided herein; provided, however, that a Stock Price Hurdle shall also be met with respect to any previously unmet hurdles if the Company's Common Shares cease trading as a result of a Change of Control (as defined in the Employment Agreement) transaction in which holders of the Company's Common Shares receive per-share consideration with a value equal to or greater than such Stock Price Hurdle.

        During the Performance Period, except as otherwise provided in Section 2.3 below in the event of a Change of Control (as defined in the Employment Agreement), PSUs shall vest on the achievement of each of the three Stock Price Hurdles (with each hurdle only being able to be achieved once for purposes of vesting), as follows, subject to Recipient's continued employment through the date a given Stock Price Hurdle is achieved:

    

    

    
        
            	
                            Stock Price Hurdle

                        	
                            Number of PSUs 
That Will Vest

                        
	
                            US$5.00

                        	
                            297,619 shares = incremental/Total

                        
	
                            US$9.00

                        	
                            297,619 shares = Incremental; 595,238 shares = Total

                        
	
                            US$14.00

                        	
                            297,619 shares = Incremental; 
 892,857shares = Total

                        
	
                             

                        	
                             

                        
	
                            Total Vested Shares

                        	
                            892,857

                        

        

        The Stock Price Hurdles will be subject to appropriate adjustment in the event of any share dividend, share split, combination or other similar recapitalization or any other event described in Section 6.1.  If none of the Stock Price Hurdles are met, none of the PSUs dependent on Stock Price Hurdles will vest.  If only the US$5.00 Stock Price Hurdle is met, only 297,619 PSUs dependent upon Stock Price Hurdles will vest.  If the US$5.00 and US$9.00 Stock Price Hurdles are met, 595,238 PSUs dependent upon Stock Price Hurdles will vest.  If all three Stock Price Hurdles are met, 892,857 PSUs will vest.  The maximum aggregate number of PSUs that can vest under the Stock Price Hurdles is 892,857.  Except as otherwise provided in Section 3, all vested PSUs shall be settled by the Company within 60 days of the date they vest, subject to continued employment through the applicable date of vesting, and all unvested PSUs shall be forfeited and cancelled.  In the event of an unusual, extraordinary, non-recurring or similar event as referred to in Section 2.2, the Board will consider, in its reasonable discretion, making adjustments to the Stock Price Hurdles.

        2.2  The vesting of 892,857 of the PSUs, if vesting occurs at all, is dependent on the Company achieving cumulative Adjusted EBITDA during fiscal years 2019 through 2022 (the "EBITDA Hurdles") as provided herein.

        During the Performance Period, except as otherwise provided in Section 2.3 below in the event of a Change of Control (as defined in the Employment Agreement), PSUs dependent upon EBITDA Hurdles shall vest at the end of the fiscal year in which each of the three EBITDA Hurdles is achieved (with each hurdle only being able to be achieved once for purposes of vesting), as follows, subject to Recipient's continued employment through the end of the fiscal year in which the applicable EBITDA Hurdle is achieved:

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                        EBITDA Hurdle

                    	
                        Number of PSUs 
That Will Vest

                    
	
                        US$80,000,000

                    	
                        297,619 shares = incremental/Total

                    
	
                        US$110,000,000

                    	
                        297,619 shares = Incremental; 595,238 shares = Total

                    
	
                        US$140,000,000

                    	
                        297,619 shares = Incremental; 
892,857 shares = Total

                    
	
                        Total Vested Shares

                    	
                        892,857

                    

          
        

        If none of the EBITDA Hurdles are met, none of the PSUs dependent upon EBITDA Hurdles will vest.  If only the US$80,000,000 EBITDA Hurdle is met, only 297,619 PSUs dependent upon EBITDA Hurdles will vest.  If the US$80,000,000 and US$110,000,000 EBITDA Hurdles are met, 595,238 PSUs dependent upon EBITDA Hurdles will vest.  If all three EBITDA Hurdles are met, 892,857 PSUs will vest.  Except as otherwise provided in Section 3, all vested PSUs shall be settled by the Company within 90 days following the delivery to the Company and acceptance by the Board of Directors of the Company's audited financial statements for each fiscal year during the Performance Period in which a EBITDA Hurdle is achieved, subject to continued employment through the end of the fiscal year in which the applicable EBITDA Hurdle is achieved, and all unvested PSUs shall be forfeited and cancelled.

        "Adjusted EBITDA" for a given fiscal year will be calculated in the same manner, using the same adjustments, as adjusted EBITDA is publicly reported by the Company in its Form 10-K for such fiscal year and will be based on the Company's audited financial statements.  If the Company ceases reporting adjusted EBITDA in its Form 10-K, then adjusted EBITDA will be calculated in the same manner, using the same adjustments, as calculated in the most recent Form 10-K containing adjusted EBITDA. Notwithstanding the foregoing, adjustments to Adjusted EBITDA may be made by the Board of Directors, in its reasonable discretion, in the event of the occurrence of unusual, extraordinary, non-recurring or other circumstances that, in the judgment of the Board of Directors, would cause the application of the existing performance goals or measures to fail to fairly reflect the performance of the Company. These circumstances may include acquisitions, divestitures, joint ventures, regulatory developments, tax law changes, accounting changes, restructuring or other special charges, and other occurrences.

        2.3 In the event of a Change of Control (as defined in the Employment Agreement), unvested PSUs as of the date of the Change of Control will be interpolated as follows: if the actual performance of the performance conditions described above as of the end of the fiscal year immediately prior to the Change of Control date is between (a) first and second vesting levels, or (b) second and third vesting levels for the applicable Stock Price Hurdle or EBITDA Hurdle, the number of earned PSUs shall be equal to the product of: (i) the number of PSUs subject to the performance requirement; and (ii) the actual performance achievement, determined using straight line interpolation between the first vesting level and the second vesting level (or second vesting level and third vesting level, as applicable) rounded down to a whole number, less any PSUs previously earned based
on achievement of a lower vesting level.  Except as otherwise provided
in Section 3, all vested PSUs shall be settled by the Company within 60
days of the date they vest, subject to continued employment through the
applicable date of vesting, and all unvested PSUs shall be forfeited and
 cancelled.

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        3. Employment Condition.

        3.1 Payout.  In order to receive a payout of shares under this Agreement, Recipient must be employed by the Company continuously from the Award Date until the Vesting Event applicable to the underlying PSUs, except as provided in the Employment Agreement or Sections 3.2, 3.3 or 3.4 below. For purposes of this Agreement, Recipient is considered to be employed by the Company if Recipient is employed by the Company or any parent or subsidiary of the Company (an "Employer").

        3.2 Total Disability. If Recipient's employment with the Company is terminated at any time prior to a Vesting Event because of Total Disability (as defined in the Employment Agreement), any PSUs that are vested as of the Termination Date (as defined in the Employment Agreement), shall be settled in accordance with the terms of this Agreement.

        3.3 Death.  If Recipient's employment with the Company is terminated at any time prior to a Vesting Event because of death, any PSUs that are vested as of the Termination Date (as defined in the Employment Agreement), shall be settled in accordance with the terms of this Agreement.

        3.4 Other Terminations.  If Recipient's employment by the Company is terminated at any time prior to a Vesting Event and neither Section 3.2 or Section 3.3 applies to such termination, Recipient shall not be entitled to receive any shares under this Agreement that have not vested prior to the date of termination.

        4. Payment.  As soon as practicable following a Vesting Event, the Board shall determine the number, if any, of Common Shares, issuable pursuant to this Agreement.  Subject to applicable tax withholding, such shares shall be issued to Recipient as soon as practicable following the Vesting Event. No fractional shares shall be issued and the number of shares deliverable shall be rounded down to the nearest whole share, and any remaining fractional shares shall be paid in cash.  Notwithstanding anything hereinabove to the contrary, if either Section 3.2 or 3.3 requires an earlier award payout, a similar process shall be followed in accordance with the timing identified therein.

        5. Tax Withholding.

        5.1 Recipient acknowledges that on the date that shares underlying the PSUs are issued to Recipient, the fair market value of the Common Shares will be treated as ordinary compensation income for federal and state and provincial income tax purposes and employment tax purposes, and that the Company will be required to withhold taxes on these income amounts pursuant to Section 5.2 below.

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        5.2 Prior to any relevant taxable or tax withholding event, as applicable, Recipient agrees to make adequate arrangements satisfactory to the Company and/or the Employer to satisfy all federal, state and other tax withholding obligations. In this regard, Recipient authorizes the Company and/or the Employer, or their respective agents, at their discretion, to satisfy applicable withholding obligations by one or a combination of the following:

        (a) withholding from Recipient's or other cash compensation paid by the Company and/or the Employer; or

        (b) withholding from proceeds of the sale of Common Shares acquired upon vesting/settlement of the PSUs either through a voluntary sale or through a mandatory sale arranged by the Company on Recipient's behalf pursuant to this authorization; or

        (c) withholding in Common Shares to be issued upon vesting/settlement of the PSUs.

        5.3 If the withholding obligation is satisfied by withholding in Common Shares, for tax purposes, Recipient is deemed to have been issued the full number of Common Shares subject to the vested PSUs, notwithstanding that a number of the Common Shares are held back solely for the purpose of paying the withholding.

        5.4 Recipient agrees to pay to the Company or the Employer any amount the Company or the Employer may be required to withhold or account for as a result of this award that cannot be satisfied by the means previously described. The Company may refuse to issue or deliver the shares or the proceeds of the sale of shares if Recipient fails to comply with these obligations.

        6. Stock Splits, Stock Dividend; Mergers, Etc.

        6.1 If the outstanding common shares of the Company are hereafter increased or decreased or changed into or exchanged for a different number or kind of shares or other securities of the Company by reason of any stock split, combination of shares, dividend payable in shares, recapitalization or reclassification, appropriate adjustment shall be made by the Company in the number and kind of shares subject to the PSUs, so that Recipient's proportionate interest before and after the occurrence of the event is maintained. Notwithstanding the foregoing, the Company shall have no obligation to effect any adjustment that would or might result in the issuance of fractional shares, and any fractional shares resulting from any adjustment may be disregarded or provided for in any manner determined by the Company.  Any such adjustments made by the Company shall be conclusive.

        6.2 Mergers, Reorganizations, Etc.  If, while any unvested PSUs are outstanding, there shall occur a merger, consolidation, amalgamation or plan of exchange, in each case involving the Company pursuant to which outstanding Common Shares are converted into cash or other stock, securities or property (each, a "Transaction"), (i) all outstanding PSUs as to which the applicable vesting requirement set forth in Section 2 has not been satisfied as of the closing of the Transaction shall be forfeited and cancelled and (ii) the Board of Directors, may, in its sole discretion, provide that the remaining PSUs shall be treated in accordance with any of the following alternatives:

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        (a) The remaining PSUs shall be converted into restricted stock units to acquire stock of the surviving or acquiring corporation in the Transaction (unless otherwise accelerated as determined by the Board of Directors in its sole discretion) and shall be subject to continued employment of Recipient by the Company or any acquiring or surviving company through the Performance Period, with the amount and type of shares subject thereto to be conclusively determined by the Board of Directors, taking into account the relative values of the companies involved in the Transaction and the exchange rate, if any, used in determining shares of the surviving corporation to be held by holders of common  shares of the Company following the Transaction, and disregarding fractional shares, and the performance measures adjusted to reflect the circumstances of the Company or any acquiring or surviving corporation as conclusively determined by the Board of Directors;

        (b) The remaining PSUs shall be cancelled effective immediately prior to the consummation of the Transaction, and, in full consideration of the cancellation, the surviving corporation shall pay to Recipient ), with payment subject to continued employment of  Recipient by the Company or any acquiring or surviving corporation through the Performance Period (unless otherwise accelerated pursuant to Section 3 or the terms of the Employment Agreement), an amount in cash, for each remaining PSU assuming vesting at the 100% level, equal to the value, as determined by the Board of Directors, of the common shares subject to the unvested PSUs at the time of the closing of the Transaction, taking into account the relative values of the companies involved in the Transaction and the exchange rate, if any, used in determining shares of the surviving corporation to be held by holders of common shares of the Company following the Transaction or other consideration paid in the Transaction to holders of common shares of the Company; or

        (c) The remaining PSUs shall become vested in full and all unissued shares subject to the PSUs shall be issued immediately prior to the consummation of the Transaction.

        In the event the Board of Directors opts that the remaining PSUs shall be treated in accordance with (a) above, then the surviving or acquiring corporation in the Transaction must agree to all relevant provisions of the Employment Agreement pertaining to the PSUs.

        7. Section 409A.  The awards granted pursuant to this Agreement are intended to be compliant with Section 409A of the Internal Revenue Code ("Section 409A") and shall be interpreted consistent with such intent.  Each of the Section 409A provisions of Section 7.3 of the Employment Agreement shall apply to the award.

        8. No Right to Employment.  Nothing contained in this Agreement and the Employment Agreement shall confer upon Recipient any right to be employed by the Company or to interfere in any way with the right of the Company to terminate Recipient's employment at any time for any reason, with or without cause.

        9. Miscellaneous.

        9.1 Entire Agreement; Amendment.  This Agreement and the Employment Agreement constitute the entire agreements of the parties with regard to the subjects hereof and may be amended only by written agreement between the Company and Recipient.

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        9.2 Notices.  Any notice required or permitted under this Agreement shall be in writing and shall be deemed sufficient when delivered personally to the party to whom it is addressed or when deposited into the United States or Canadian mail as registered or certified mail, return receipt requested, postage prepaid, addressed to the Company, Attention: General Counsel, at its principal executive offices or to Recipient at the address of Recipient in the Company's records, or at such other address as such party may designate by ten (10) days' advance written notice to the other party.

        9.3 Assignment; Rights and Benefits.  Recipient shall not assign this Agreement or any rights hereunder to any other party or parties without the prior written consent of the Company. The rights and benefits of this Agreement shall inure to the benefit of and be enforceable by the Company's successors and assigns and, subject to the foregoing restriction on assignment, be binding upon Recipient's heirs, executors, administrators, successors and assigns.

        9.4 Further Action.  The parties agree to execute such further instruments and to take such further action as may reasonably be necessary to carry out the intent of this Agreement.

        9.5 Applicable Law.  The terms and conditions of this Agreement will be interpreted under the laws of the state of Minnesota, exclusive of choice of law rules.  Any action or proceeding by either of the parties to enforce this Agreement shall be brought only in a state or federal court located in the state of Minnesota.

        9.6 Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original.

        	
                        SUNOPTA INC.	
                         	
                        RECIPIENT
	
                         	
                         	
                         
	
                        By: /s/ Jeff Gough

                        Name: Jeff Gough

                        Title: CHRO

                    	
                         

                    	
                        /s/ Joseph D. Ennen

                        Joseph D. Ennen

                    

        7

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