SEC Contract Filing

Filing Date: 2017-02-07

Document Content:
<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>5
<FILENAME>exhibit10-4.htm
<DESCRIPTION>EXHIBIT 10.4
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 <TITLE>SunOpta Inc.: Exhibit 10.4 - Filed by newsfilecorp.com</TITLE>
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<P align=right><B>Exhibit 10.4 </B></P>
<P align=center><B>PERFORMANCE SHARE UNIT AWARD AGREEMENT </B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Performance Share Unit Award
Agreement (the &#147;<B>Agreement</B>&#148;) is entered into as of February 6, 2017
between SunOpta Inc., a Canadian corporation (the &#147;<B>Company</B>&#148;), and David
Colo (the &#147;<B>Recipient</B>&#148;). </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February 6, 2017 (the
&#147;<B>Award Date</B>&#148;) the Company&#146;s Board of Directors or the Compensation
Committee of the Board of Directors (the &#147;<B>Board</B>&#148;) 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&#146;s Amended 2013 Stock Incentive Plan or
any other plan. This award is granted pursuant to the terms of the Executive
Employment Agreement dated February 2, 2017 between the Company and Recipient
(the &#147;<B>Employment Agreement</B>&#148;) 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. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; NOW, THEREFORE, the parties agree as
follows: </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <U>Award</U>. The Company
grants to Recipient 277,780 performance share units (&#147;<B>PSUs</B>&#148;) with respect
to the Company&#146;s common shares (&#147;<B>Common Shares</B>&#148;). 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) Recipient&#146;s continued
employment as during the entire Performance Period (as defined below) pursuant
to Section 3.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <U>Performance Conditions</U>.
The vesting of the PSUs, if vesting occurs at all, is dependent on the Common
Shares achieving a closing trading price of at least US$11.00, US$14.00 and
US$18.00<B> </B>in each case for 20 consecutive trading days (the &#147;<B>Stock
Price Hurdles</B>&#148;) during the three-year period commencing on the Award Date
(the &#147;<B>Performance Period</B>&#148;) as provided herein; provided, however, that a
Stock Price Hurdle shall also be met if the Company&#146;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&#146;s Common Shares receive
per-share consideration equal to or greater than such Stock Price Hurdle. </P>
<P align=justify>On the last day of the Performance Period, one-third of the
PSUs shall vest on the achievement of each of the three Stock Price Hurdles, as
follows, subject to Recipient&#146;s employment during the entire Performance Period:
</P>
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 <TR vAlign=top>
 <TD align=center><B>Stock Price Hurdle</B> <BR></TD>
 <TD align=center width="50%"><B>Number of PSUs</B> <BR><B>That Will
 Vest</B> </TD></TR>
 <TR vAlign=top>
 <TD style="BORDER-BOTTOM: #000000 1px solid" align=center>US$11.00 </TD>
 <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
 width="50%">92,593 = Incremental/Total </TD></TR>
 <TR vAlign=top>
 <TD align=center>US$14.00 <BR></TD>
 <TD align=center width="50%">92,593 = Incremental; <BR>185,186 = Total
 </TD></TR>
 <TR vAlign=top>
 <TD align=center>US$18.00 <BR></TD>
 <TD align=center width="50%">92,594 = Incremental; <BR>277,780 = Total
 </TD></TR>
 <TR vAlign=top>
 <TD style="BORDER-BOTTOM: #000000 1px solid" align=center>Total Vested </TD>
 <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
 width="50%"><U>277,780</U> </TD></TR></TABLE></DIV><BR>
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<P align=justify>If none of the Stock Price Hurdles are met, none of the PSUs
will vest. If only the US$11.00 Stock Price Hurdle is met, only one-third of the
PSUs (i.e., as to 92,593 PSUs) will vest. If the US$11.00 and US$14.00 Stock
Price Hurdles are met, only two-thirds of the PSUs (i.e., as to 185,186 PSUs)
will vest. If all three Stock Price Hurdles are met, all of the PSUs (i.e., as
to 277,780 PSUs) will vest. </P>
<P align=justify>All vested PSUs shall be settled by the Company as soon as
reasonably practicable following the completion of the Performance Period,
subject to continued employment during the entire Performance Period pursuant to
Section 3, and all unvested PSUs shall be forfeited and cancelled. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; 3. <U>Employment Condition</U>. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;3.1
<U>Payout</U>. In order to receive a payout of shares under this Agreement,
Recipient must be employed by the Company continuous from the Award Date until
the end of the Performance Period, 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 an