CDK Global, Inc., Amended and Restated Retirement and Savings Restoration Plan, effective November 6, 2018 (Management Compensatory Plan)

CDK Global, Inc.
Retirement and Savings Restoration Plan (RSRP)

(Effective November 6, 2018)

1.1     Purpose of the Plan

CDK Global, Inc. (the “Company”) establishes this CDK Global, Inc. Retirement and Savings Restoration Plan (the “Plan”) to attract and retain key letter-grade executive employees by restoring Qualified Plan retirement benefits that are unable to be provided due to Code limits on compensation and benefit amounts payable under tax-qualified retirement plans.

1.2     Legal Status

1.3     Effective Date

This Amended and Restated Plan is effective as of November 6, 2018.

Article 2.     Definitions

2.1     Definitions

Whenever used in the Plan, the following terms have the meanings set forth below unless otherwise expressly provided. References to specific Code provisions include any final regulations, Revenue Rulings, and guidance of general applicability thereunder.

Whether a Separation from Service occurs will be determined in accordance with the rules under Code Section 409A. In general, a Participant’s employment will be deemed terminated on the date as of which, in the Company’s and Participant’s reasonable expectation, the Participant’s level of bona fide services for the Company decreases to 20% or less of his or her average level of bona fide services over the immediately-preceding 36-month period (or the full period of services if the Participant has been providing services to the Company for fewer than 36 months) and a Participant’s employment will be deemed not to have terminated as long as the Participant’s level of bona fide services exceeds the 20% threshold.

A Participant’s employment will be treated as continuing while he or she is on military leave, sick leave, disability leave, or other bona fide leave of absence if the period of the leave does not exceed six months or, if longer, for as long as the Participant has a statutory or contractual right to reemployment with the Company. If the period of leave exceeds six months, and the Participant does not have a statutory or contractual right to reemployment, the Participant’s

employment will be deemed to terminate on the first day immediately following the six-month period.

2.2     Construction

Terms capitalized in the Plan shall have the meaning set forth in Article 2.1 above or as specified elsewhere in the Plan. Except where otherwise indicated by the context, any masculine or feminine terminology shall also include the opposite gender, and the definition of any term in the singular or plural shall also include the opposite number. The headings of this Plan are inserted for convenience of reference only, and they are not to be used in the construction of the Plan.

Article 3.     Participation

3.1     Eligibility

With respect to a given Plan Year, Employees who reach an executive letter grade position (including those in such a position on the Effective Date) will be eligible to participate in the Plan.

Notwithstanding the foregoing, the Committee (subject to approval by the Compensation Committee) reserves the right in its sole discretion to determine that any Employee is not eligible to participate in the Plan. In addition, the Committee (subject to approval by the Compensation Committee) reserves the right in its sole discretion to, from time to time, modify the above eligibility requirements and make such additional or other requirements for eligibility as the Committee may determine.

An Employee’s participation in the Plan shall commence on the first of the month coincident with or next following such Employee’s becoming eligible for participation in the Plan as set forth above (which, for the avoidance of doubt, shall be the Effective Date for those Employees so eligible on the Effective Date).

Article 4.     Contributions

4.1     Contribution Amount

Starting with the later of the Plan Year in which a Participant joins the Plan and the Plan Year in which a Participant first becomes eligible for employer contributions pursuant to the terms of the Qualified Plan, and for each Plan Year thereafter throughout which the Participant remains actively employed by the Company, the Company will credit to the Participant’s Account the amount in (a) below less the amount in (b) below:

amounts credited as earnings and/or interest), determined without regard to compensation and/or benefit limits under Sections 401(a)(17) and 415 of the Code, assuming for such purpose that the Participant had elected and made the maximum contributions to such Qualified Plans for such Plan Year.

For the Plan Year in which a Participant joins the Plan, or if later, the Plan Year in which a Participant first becomes eligible for employer contributions pursuant to the terms of the Qualified Plan: (i) the Participant’s Compensation that is to be taken into account for the purpose of calculating his or her Company Contribution shall be the Compensation payable during the entire Plan Year (including any Compensation earned during any applicable period of Continuous Service with Automatic Data Processing, Inc. or a subsidiary or affiliate thereof); (ii) the employer contributions to the Qualified Plan as defined in (b) above shall be the maximum contributions that could have been made during the entire Plan Year based on the Compensation payable during the entire Plan Year (including any Compensation earned during any applicable period of Continuous Service with Automatic Data Processing, Inc. or a subsidiary or affiliate thereof); and (iii) the Company Contribution for such Plan Year determined in accordance with the foregoing shall then be prorated to reflect the portion of the Plan Year beginning with the date the Employee becomes a Participant in this Plan and ending with the last day of such Plan Year (so that, for example, if an Employee who is eligible for employer contributions pursuant to the terms of the Qualified Plan becomes a Participant on October 1, the proration factor would be 3/12). For the sake of clarity, it is intended that the Company Contribution (in respect of an Employee who is a Participant on the Effective Date) for the Plan Year in which the Effective Date occurs be determined by taking into account the sum of the Compensation of such Employee with respect to his Continuous Service with Automatic Data Processing, Inc. or a subsidiary or affiliate thereof for the portion of such Plan Year prior to the Effective Date plus the Compensation of such Employee with respect to his Continuous Service with the Company or a subsidiary or affiliate thereof for the portion of such Plan Year on and after the Effective Date, and assuming that he had been a Participant in the Qualified Plan for the entire Plan Year (and that the Qualified Plan had been effect retroactively to January 1 of such Plan Year). For the avoidance of doubt, no amounts shall be credited to a Participant’s Account under this Plan in respect of any Plan Year ending before the first date on which such Participant first becomes eligible for employer contributions pursuant to the terms of the Qualified Plan.

For the Plan Year in which a Participant incurs a Separation From Service, a Participant will not receive a Company Contribution under this Plan.

4.2     Contribution Timing

Company Contributions will be credited to a Participant’s Account as soon as practicable following the end of the applicable Plan Year.

Article 5.     Accounts

5.1     Establishment of Accounts

The Committee will establish a bookkeeping account for each Participant to which the Company Contributions described in Article 4 will be credited. An Account shall be maintained for each Participant until full payment of the balance credited to the Account has been made under Article 7.

5.2     Earnings

Unless the Participant directs otherwise pursuant to the terms of this Article 5, his or her Account shall be notionally invested in an Investment Fund selected by the Committee. The Committee may, in its discretion, offer a choice of Investment Funds in which amounts credited to the Account may be notionally invested at the direction of the Participant. This choice grants Participants no real or beneficial interest in any specific fund or property, or the ability to affect the actual investments the Company may or may not make to cover its obligations under the Plan.

There is no obligation on the part of the Company, or anyone else, to segregate or otherwise set aside amounts notionally credited to any Account, and any actual investments intended to cover the obligations hereunder shall be made by the Company at its discretion, and may or may not bear a resemblance to the Participants’ investment choices. The Committee shall also establish a default Investment Fund in which an Account will be notionally invested if the Participant fails to make an investment election. In lieu of offering the Investment Funds, the Committee may notionally credit Accounts with interest, at a rate determined by the Committee. The Investment Funds (and the interest crediting rate, as applicable) may be added to, decreased or changed at any time and for any reason at the sole discretion of the Committee.

Article 6.     Vesting

6.1     Vesting

A Participant’s Account (inclusive of all Company Contributions and any income, gains, or losses thereon) will be 100% vested upon the earliest of the following events, provided the Participant is an active Employee on the date of such event:

6.2     Forfeitures

Notwithstanding Article 6.1, a Participant shall forfeit his or her Account, without regard to whether such amounts are vested or unvested in the event:

Article 7.     Distributions

7.1     Elections

Each Participant shall have the opportunity, at any time during the first 30 days of participation in the Plan, to elect to receive his or her vested Account commencing upon the one-year anniversary of the Participant’s Separation From Service in one of the payment form options specified in this Article 7.1 (Distribution Election). Participants may elect to receive distributions in one of the following forms:

Notwithstanding any election under clause (b) above or Article 7.2 below, if a Participant Separates From Service with a vested Account balance of less than $50,000 or Separates From Service prior to age 55, the Participant will receive the entire vested balance in a single lump sum as soon as practicable after the one-year anniversary of the Participant’s Separation from Service, but no later than 90 days after such date.

If a Participant fails to make an election during the first 30 days of participation, he or she will be treated as if he or she elected a lump sum form of payment.

7.2     Change to Form of Payment

An active Participant who has not previously Separated From Service may make a one-time election to change the form of payment if both of the following conditions are met:

7.3     Separation From Service

For a Participant who Separates From Service for a reason other than death, the Participant’s vested Account will be distributed in accordance with the form of payment elected by the Participant pursuant to Article 7.1, or if applicable, Article 7.2.

7.4     Death

If a Participant terminates employment due to death, the value of the Participant’s Account as of the date of death shall be distributed to the Participant’s Beneficiary in a

lump sum as soon as practicable following the Participant’s death, but no later than 90 days following the Participant’s death.

If a Participant dies following Separation From Service, but before having received all payments under the Plan, the remaining payments (valued as of the date of death) shall be paid in a single lump sum to the Beneficiary as soon as practicable but no later than 90 days after death.

Article 8.     Administration

8.1     Committee

A Committee shall be appointed by, and serve at the pleasure of, the Compensation Committee. The number of members comprising the Committee shall be determined by the Compensation Committee, which may from time to time vary the number of members. A member of the Committee may resign by delivering a written notice of resignation to the Compensation Committee. The Compensation Committee or the Board of Directors may remove any member, with or without cause, by delivering a copy of its resolution of removal to such member.

8.2     Committee Action

The Committee shall act at meetings by affirmative vote of a majority of the members of the Committee. Any action permitted to be taken at a meeting may be taken without a meeting if, prior to such action, a written consent to the action is signed by a majority of members of the Committee and such written consent is filed with the minutes of the proceedings of the Committee. A member of the Committee shall not vote or act upon any matter which relates solely to himself or herself as a Participant. Any member of the Committee may execute any certificate or other written direction on behalf of the Committee.

8.3     Powers of the Committee

The Committee, on behalf of the Participants and their Beneficiaries, shall enforce the Plan in accordance with its terms, shall be charged with the general administration of the Plan, and shall have all powers necessary to accomplish its purposes, including, but not limited to, the following:

(a)    to select the Investment Funds;

(b)    to construe and interpret the terms and provisions of this Plan;

(c)    to compute and certify to the amount and kind of benefits payable to Participants and their beneficiaries;

(d)    to maintain all records that may be necessary for the administration of the Plan;

(e)    to provide for the disclosure of all information and the filing or provision of all reports and statements to Participants, beneficiaries or governmental agencies as shall be required by law;

(f)    to make and publish such rules for the regulation of the Plan and procedures for the administration of the Plan as are not inconsistent with the terms hereof;

(g)    to appoint a Plan Administrator, or any other agents, and to delegate to them such powers and duties in connection with the administration of the Plan as the Committee may from time to time prescribe; and

(h)    to take all actions necessary for the administration of the Plan.

8.4     Construction and Interpretation

The Committee shall have full discretion to construe and interpret the terms and provisions of this Plan, which interpretations or construction shall be final and binding on all parties, including but not limited to the Company and any Participant or Beneficiary.

8.5     Compensation and Expenses

The members of the Committee shall serve without compensation for their services hereunder. The Committee is authorized at the expense of the Company to employ such legal counsel as it may deem advisable to assist in the performance of its duties hereunder. Expenses and fees in connection with the administration of the Plan shall be paid by the Company.

Article 9.     Amendment

9.1     Amendment to the Plan

The Committee (subject to approval by the Compensation Committee) reserves the right in its sole discretion at any time and for any reason to amend the Plan in any manner that it deems fit, provided that no amendment shall operate to reduce the balance of any Participant’s Account as of the later of the adoption date or effective date of the amendment.

9.2     Continuation of the Plan

The Company intends to maintain the Plan indefinitely, but the Company reserves the right in its sole discretion at any time and for any reason to discontinue the Plan either in whole or in part.

Article 10.     Claims Procedure

10.1     Initial Claim

A Participant or Beneficiary (hereinafter referred to as Claimant) who believes that a benefit is due under the Plan may file a written claim with the Committee.

10.2     Claim Decision

The Committee shall provide written notice of its decision to the Claimant within 90 days after the initial claim was filed. If more than 90 days are necessary for the Committee to deliver a reply, the Committee will notify the Claimant in writing during the initial 90 day period indicating the special circumstances requiring the extension and the date by which the Committee expects to reply to the claim.

If a claim for benefits is denied in whole or in part, the written notice shall include the following:

10.3     Appeal Process

Any Claimant whose claim has been denied in whole or in part may request a review of the decision by the Committee within 60 days of receiving the written notice of the denial of benefits. In connection with any such review, the Claimant or the Claimant’s duly authorized representative shall be provided, upon request, reasonable access to pertinent documents used by the Committee to deny the claim.

 

10.4     Exhaustion of Remedies

Article 11.     Miscellaneous Provisions

11.1     Unsecured General Creditor

Participants and Beneficiaries shall not have any interest in any property or assets of the Company on account of participation in the Plan, and no other rights against the Company, except as a general unsecured creditor. Any rabbi trust or other arrangement that may (but need not) be established by the Company to facilitate the administration of the Plan shall not change the nature of the obligations of the Company nor the rights of the Participants and Beneficiaries as provided in this Plan.

11.2     No Employment Rights

The Plan does not constitute a contract of continuing employment or in any manner obligate the Company to continue service of Participant, or obligate a Participant to continue in the service of the Company or limit the Company’s right to discharge any Employee with or without Cause.

11.3     Tax Withholding

The Company shall have the right to withhold any federal, state, local or any other governmental income tax, payroll or employment tax (including FICA obligations for both Social Security and Medicare), excise tax, or any other tax or assessment owed with respect to Company Contributions, and earnings thereon, and any distributions made hereunder.

11.4     Non-alienation of Benefits

The interest of a Participant or Beneficiary in his or her Plan benefits is not subject to the claims of the Participant’s or Beneficiary’s creditors and may not be voluntarily or involuntarily sold, transferred, pledged, alienated, assigned, anticipated, or encumbered. Any attempt by a Participant or Beneficiary to do so will be null and void. Notwithstanding the foregoing, a Participant’s interest in his or her Plan benefits may be transferred by the Participant pursuant to a domestic relations order that constitutes a “qualified domestic relations order” as defined by Section 414(p) of the Code.

11.5     Severability

If a provision of the Plan shall be held illegal or invalid or shall cause detrimental tax treatment to a Participant or Beneficiary, the illegality, invalidity or detriment shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal, invalid, or detrimental provision had not been included in the Plan.

11.6     Section 409A

Notwithstanding any provision of the Plan to the contrary, it is intended that the provisions of the Plan shall comply with Section 409A of the Code, and all provisions of this Plan shall be construed and interpreted in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A. If the Committee determines that any amounts payable hereunder may be taxable to a Participant under Section 409A, the Company may (i) adopt such amendments to the Plan and appropriate policies and procedures, including amendments and policies with retroactive effect, that the Committee determines necessary or appropriate to preserve the intended tax treatment of the benefits provided by the Plan and/or (ii) take such other actions as the Committee determines necessary or appropriate to avoid or limit the imposition of an additional tax under Section 409A. Each Participant is solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed

on or in respect of such Participant in connection with this Plan or any other plan maintained by the Company (including any taxes and penalties under Section 409A of the Code), and neither the Company nor any subsidiary or affiliate shall have any obligation to indemnify or otherwise hold such Participant or any Beneficiary harmless from any or all such taxes or penalties.

11.7     Controlling Law

To the extent not superseded by the laws of the United States, this Plan shall be governed and construed in accordance with the laws of the State of Delaware, without regard to such state’s choice of law rules.

IN WITNESS WHEREOF, the Company has duly executed this Plan document, effective as of November 6, 2018, this 6th day of November, 2018.

By: /s/ Lisa Chung

Title: Vice President, Total Rewards

Date: November 6, 2018