Document:

geg-ex1016_866.htm

Exhibit 10.16

Notice of Restricted Stock Unit Grant

 

_________________ (“Grantee”)Great Elm Capital Group, Inc.

ID: 94-3219054

800 South Street, Suite 230

Waltham, MA 02453

 

You have been granted restricted stock units with respect to shares of Common Stock of Great Elm Capital Group, Inc. as detailed below (the “Units”):

This Notice of Restricted Stock Unit Grant (this “Notice”), together with the Great Elm Capital Group, Inc. Amended and Restated 2016 Long-Term Incentive Compensation Plan (the “Plan”) and the corresponding Restricted Stock Unit Agreement (the “Agreement”) in effect as of the Date of Grant, contain the terms of your Units.

		
	
Date of Grant:
	
 

	
Number of Restricted Stock Units: 
	
 

	
Vesting Schedule:
	
 

	
Vesting Commencement Date:
	
 

	
Vesting Completion Date:
	
 

 

 

Vesting Schedule:  

The Units shall vest in equal installments on each monthly anniversary of the Vesting Commencement Date such that they shall be vested in full on the twelve month anniversary of the Vesting Commencement Date, subject to Grantee’s Continuous Status as a Director on each such monthly anniversary.  In all cases, vesting of the Units is subject to the conditions set forth in the Agreement.

 

Acknowledgements and Agreements: 

By your signature and the signature of the representative for Great Elm Capital Group, Inc. (the “Company”) below, you and the Company agree that these Units are granted under and governed by the terms and conditions of the Plan and the Agreement, all of which are attached and hereby incorporated by reference and made a part hereof.

 

		
	
GRANTEE

 

 
	
GREAT ELM CAPITAL GROUP, INC.

 

	
__________________________________

Print Name:

 
	
By: 

Name: Peter A. Reed

Title: Chief Executive Officer

 

	
Date  ____________________________
	
Date: 

 

 

NAI-1515108575v2

 

 

GREAT ELM CAPITAL GROUP, INC.

2016 AMENDED AND RESTATED LONG TERM INCENTIVE COMPENSATION PLAN 

RESTRICTED STOCK UNIT AGREEMENT

 

	
1.
	
Grant of Units.  Great Elm Capital Group, Inc., a Delaware corporation (the “Company”), hereby grants to the Grantee (“Grantee”) named in the corresponding Notice of Restricted Stock Unit Grant (the “Notice”) the number of restricted stock units (the “Units”) set forth in the Notice, subject to the terms of the Company’s Amended and Restated 2016 Long-Term Incentive Compensation Plan (“Plan”), which is incorporated herein by reference, and the terms of this Restricted Stock Unit Agreement (the “Agreement”).  Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Agreement.  In the event of a conflict between the terms and conditions of the Plan and the terms and conditions of this Agreement, the terms and conditions of the Plan shall prevail.

	
2.
	
Payment.  No payment is required by Grantee for the Units.

	
3.
	
Responsibility for Taxes.  The Company is not responsible for withholding any income tax, social security, unemployment, disability insurance or other tax obligations that Grantee becomes legally obligated to pay in connection with any aspect of these Units, including the award, vesting or settlement of the Units, or sale of the underlying shares of Common Stock (“Tax-Related Items”).  Grantee is solely responsible for timely reporting on Grantee’s personal income tax return all income derived from the Units and for paying all Tax-Related Items, and shall indemnify the Company and hold it harmless from and against all claims, damages, losses and expenses, including reasonable fees and expenses of attorneys, relating to any obligation imposed by law on the Company to pay any Tax-Related Items.  Notwithstanding the foregoing, in the event that the Company has any obligation to withhold Tax-Related Items under any applicable law, Grantee may satisfy the obligations with regard to all Tax-Related items by one or a combination of the following: (a) tendering a cash payment; (b) authorizing  the Company to withhold from any cash compensation paid to Grantee by the Company; (c) authorizing the Company to withhold shares of Common Stock from the shares of Common Stock otherwise issuable to Grantee, provided, however, that no shares of Common Stock are withheld with a value exceeding the minimum amount of tax required to be withheld by law; or (d) delivering to the Company owned and unencumbered shares of Common Stock. 

	
4.
	
Vesting.  Subject to Grantee’s Continuous Service as a Director and the limitation contained herein, the Units will vest as provided in the Grant Notice.  Vesting will cease upon the interruption or termination of Grantee’s Continuous Status as a Director.  Upon interruption or termination of Grantee’s Continuous Status as a Director, the unvested Units will expire.

	
5.
	
Conversion of Units and Issuance of Shares.  Unless Grantee has made a valid deferral election pursuant to procedures established by the Board, upon the Vesting Date, one share of Common Stock shall be issuable for each whole Unit that vests on such date (the “Shares”), subject to the terms and provisions of the Plan and this Agreement.  The vesting and release of Units are conditioned on Grantee making adequate provision for federal, 

 

 

NAI-1515108575v2 

 

		
state, local or foreign tax withholding obligations, if any, which arise upon the vesting and settlement of the Units, by any of the methods described in Section 3 above.  The number of Units may be adjusted from time to time to reflect a Corporate Transaction or Change in Control, as provided in the Plan.

	
6.
	
Securities Law Compliance.  Grantee will not be issued any Shares upon the vesting of the Units unless the Shares are either (a) then registered under the Securities Act of 1933, as amended (the “Securities Act”), or (b) the Company has determined that such issuance would be exempt from the registration requirements of the Securities Act.  The terms of Grantee’s Units must also comply with other applicable laws and regulations governing the Units, and Grantee will not receive such Shares if the Company determines that such receipt would not be in material compliance with such laws and regulations.

	
7.
	
Transferability.  None of the Units or any beneficial interest therein may be transferred in any manner other than by will or by the laws of descent and distribution or pursuant to a domestic relations order.  Notwithstanding the foregoing, Grantee may designate a beneficiary for the Shares that may be issuable upon the vesting of the Units, in the event of Grantee’s death, by completing the Company's approved beneficiary designation form and filing such form with the Company's Human Resources Department.  The terms of this Agreement shall be binding upon Grantee’s executors, administrators, heirs, successors, and transferees.

	
8.
	
Rights as a Stockholder.  Neither Grantee nor any of Grantee’s successors shall have any rights as a stockholder of the Company in respect of the Shares subject to the Units, including the right to vote or to receive cash dividends and other distributions, until delivery of the Shares in satisfaction of the Units.

	
9.
	
Tax Consequences.  Grantee agrees that Grantee has had the opportunity to review with Grantee’s own tax advisors the federal, state, local and foreign income and other tax consequences of the grant to Grantee of the Units and the vesting of the Units.  Grantee is relying solely on the advice of Grantee’s own advisors and not on statements or representations of the Company or any of its agents.  Grantee understands that Grantee (and not the Company) will be responsible for Grantee’s own tax liability as a result of the grant, vesting or settlement of the Units.

	
10.
	
Notices.  Any notices provided for in this Agreement or the Plan shall be given in writing and shall be deemed effective upon receipt or, in the case of notices delivered by the Company to Grantee, five days after deposit in the United States mail, postage prepaid, addressed to Grantee at the last address Grantee provided to the Company.

	
11.
	
Miscellaneous.

	
(a)
	
The rights and obligations of the Company under this Agreement shall be transferable by the Company to any one or more persons or entities, and all covenants and agreements hereunder shall inure to the benefit of, and be enforceable by the Company’s successors and assigns. 

 

 

NAI-1515108575v2 

 

	
(b)
	
Grantee agrees upon request to execute any further documents or instruments necessary or desirable in the sole determination of the Company to carry out the purposes or intent of Grantee’s Units.

	
(c)
	
Grantee acknowledges and agrees that Grantee has reviewed the Agreement in its entirety, has had an opportunity to obtain the advice of counsel prior to executing and accepting Grantee’s Units and fully understand all provisions of Grantee’s Units.

	
12.
	
Repayment/Forfeiture.  Any benefits the Grantee may receive hereunder shall be subject to repayment or forfeiture as may be required to comply with (a) any applicable listing standards of a national securities exchange adopted in accordance with Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (regarding recovery of erroneously awarded compensation) and any implementing rules and regulations of the U.S. Securities and Exchange Commission adopted thereunder, (b) similar rules under the laws of any other jurisdiction and (c) any policies adopted by the Company to implement such requirements, all to the extent determined by the Company in its discretion to be applicable to Grantee.

	
13.
	
Severability.  The provisions of this Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.

	
14.
	
Whole Agreement.  The Plan and Notice are hereby incorporated by reference and made a part hereof.  The Units and this Agreement shall be subject to all terms and conditions of the Plan and the Notice.  Grantee acknowledges that the Notice, this Agreement and the Plan set forth the entire understanding between Grantee and the Company regarding the terms and conditions of the Units and supersede all prior oral and written agreements on the subjects set forth herein, except as, and only to the extent that, such other agreements are expressly incorporated by reference herein.

	
15.
	
Amendment.  This Agreement may be amended or modified at any time only by an instrument in writing signed by each of the parties hereto.

	
16.
	
Choice of Law; Governing Law.  The law of the State of Delaware shall govern all questions concerning the construction, validity and interpretation of the Plan, without regard to such state's conflict of laws rules.  Grantee hereby agrees to submit to the jurisdiction and venue of the court of Chancery of the State of Delaware (or if such court shall lack subject matter jurisdiction) the Superior Court of the County of New Castle Delaware for all actions relating to the Units, the Shares, the Notice of Grant, this Agreement, or the Plan.  Grantee further agrees that service may be made upon Grantee in any such action or proceeding by first class, certified or registered mail, to the last address Grantee provided to the Company

 

 

 

NAI-1515108575v2geg-ex1017_867.htm

Exhibit 10.17

Notice of Restricted Stock Unit Award

 

_______________________ (“Participant”)Great Elm Group, Inc.

ID: 94-3219054

800 South Street, Suite 230

Waltham, MA 02453

 

You have been awarded restricted stock units, which represent a right to receive Shares of Great Elm Group, Inc. (the “Company”), as detailed below (the “RSUs”):

 

This Notice of Restricted Stock Unit Award, together with the Company’s Amended and Restated 2016 Long-Term Incentive Plan (as may be amended from time to time, the “Plan”) as in effect as of the Date of Grant, and the terms and conditions of the restricted stock unit award (the “Award Agreement”) attached hereto, contain the terms of your RSUs.  Capitalized terms used but not defined herein will have the meanings given to them in the Plan.

 

		
	
Date of Grant:
	
 

	
Number of RSUs: 
	
 

	
Vesting Schedule
	
 

	
Fully Vested Date
	
 

 

Vesting Schedule:

 

Subject to Section 2 of the Award Agreement, [___]% of the RSUs shall, subject to your continued employment, vest on the first anniversary of the Date of Grant and thereafter, [___]% of the RSUs shall, subject to your continued employment, vest on each monthly anniversary of the Date of Grant.

 

The foregoing is qualified in its entirety by the Award Agreement.

 

Acknowledgements and Agreements: 

 

By your signature and the signature of the representative for the Company, below, you and the Company agree that these RSUs are granted under and governed by the terms and conditions of the Plan and the Award Agreement, all of which are hereby incorporated by reference and made a part hereof.

NAI-1515108574v2 

 

 

 

 

				
	
PARTICIPANT
	
 
	
Great Elm Group, INC.

 

	
 
	
 
	
By:
	
 

	
Signature
	
 
	
 
	
 

	
 
	
 
	
Title:
	
 

	
Print Name  
	
 
	
 
	
 

	
 
	
 
	
 

	
Date
	
 
	
Date

 

 

NAI-1515108574v2 

 

 

Terms and Conditions of Restricted Stock Unit Award

 

	
1.
	
Grant of Restricted Stock Units. The Company hereby grants to Participant, as of the Date of Grant indicated in the accompanying notice of award (the “Notice”), an award (the “Award”) of the number of Restricted Stock Units (“RSUs”) set forth in such Notice under the Company’s Amended and Restated 2016 Long-Term Incentive Compensation Plan (the “Plan”). Each RSU represents the right of Participant to receive one Share, subject to and upon the terms and conditions governing the Award, including the applicable time-based vesting requirements, as set forth in this Award Agreement. Capitalized terms used but not defined herein will have the meanings given to them in the Plan.

 

	
2.
	
Vesting Terms.  Vesting is dependent upon Participant’s continued employment by the Company or its Affiliates through each applicable vesting date.  Except as otherwise provided herein, all unvested RSUs shall be forfeited, and all rights of Participant to such RSUs shall immediately terminate, upon the termination of Participant’s employment with the Company or its Affiliates.

 

	
2.1
	
Vesting Upon Disability or Death.  If Participant’s employment is terminated by reason of Participant’s death or Disability, then the number of RSUs that would have vested during the twelve months following such termination had Participant remained continuously employed through the end of such twelve-month period shall vest on the date of such termination.  For purposes of this Award Agreement, “Disability” shall mean the inability of Participant, in the opinion of a qualified physician acceptable to the Company, to perform the major duties of Participant’s position with the Company or an Affiliate of the Company because of the sickness or injury of the individual, or as may be otherwise defined under applicable local laws. 

 

	
2.2
	
Vesting Upon Termination Without Cause or Resignation for Good Reason.  If Participant’s employment is terminated by the Company or an Affiliate of the Company without Cause or Participant resigns for Good Reason, all unvested RSUs will vest in full immediately upon such termination.

 

	
(a)
	
For purposes of this Award Agreement, “Cause” shall mean: (i) Participant’s theft, dishonesty, misconduct, or falsification of any of the Company’s or its affiliates’ records; (ii) any action by Participant outside of the scope of Participant’s employment agreement with the Company that has a material detrimental effect on the Company’s reputation or business as reasonably determined by the Committee; (iii) Participant’s substantial failure or inability to perform any reasonably assigned duties within the scope of Participant’s employment agreement with the Company that has not been cured within 30 business days of written notice from the Company to Participant, in each case, as determined by the Committee in its sole discretion; (iv) Participant’s violation of any Company policy; (v) Participant’s conviction (including any plea of guilty or no contest) of any criminal act; or (vi) Participant’s material breach of any written agreement with the Company which has not been cured within 10 business days’ of written notice from the Company to Participant thereof. 

 

	
(b)
	
For purposes of this Award Agreement, “Good Reason” shall mean Participant’s resignation from the Company within six months after the occurrence of any of the 

1

NAI-1515108574v2 

 

		
following events: (i) without Participant’s express prior written consent, the significant reduction of Participant’s duties, authority, responsibilities, job title, or reporting relationships relative to your duties, authority, responsibilities, job title, or reporting relationships as in effect immediately prior to such reduction, or the assignment to Participant of such reduced duties, authority, responsibilities, job title, or reporting relationships; (ii) without Participant’s express prior written consent, a reduction by the Company of Participant’s base salary or bonus target as in effect immediately prior to such reduction or the Company’s failure to pay such amounts when due; (iii) a material reduction by the Company in the kind or level of employee benefits, excluding salary and bonuses, to which Participant was entitled immediately prior to such reduction with the result that Participant’s overall benefits package is significantly reduced (unless such reduction is part of a program generally applicable to other  employees of the Company of a similar level); (iv) the relocation of Participant’s principal place of work to a facility or a location more than twenty five miles from Participant’s then present location, without Participant’s express prior written consent or (v) breach by the Company of its obligations hereunder or under any incentive awards (including the related award agreements) held by Participant; provided, however, that in each case, Participant’s resignation shall not constitute Good Reason under this provision unless (A) Participant provides the Company with written notice of the applicable event or circumstance within thirty days after Participant first has knowledge thereof, which notice reasonably identifies the event or circumstance that Participant believes constitutes grounds for Good Reason, and (B) the Company fails to correct the event or circumstance so identified within thirty days after receipt of such notice.

 

	
3.
	
Issuance Date.  Payment for the RSUs, after and to the extent they become vested, shall be made in the form of Shares.  Unless Participant has made a valid deferral election pursuant to procedures established by the Board or the terms of this Award Agreement provide otherwise, the Shares shall be issued as soon as administratively practicable following (but in no event later than 30 days following), the date that the applicable RSUs vest pursuant to Section 2.

 

	
4.
	
Limited Transferability.  Prior to vesting, Participant may not transfer the RSUs subject to this Award or pledge or otherwise hedge the sale of those RSUs, including (without limitation) any short sale or any acquisition or disposition of any put or call option or other instrument tied to the value of the Shares underlying the RSUs.  Participant may direct the Company to record the ownership of any Shares that become payable in respect of RSUs hereunder in the name of a bona fide retirement planning, estate planning or charitable donation vehicle. Participant may make such a beneficiary designation or ownership directive at any time by completing the required forms and filing the completed form with the Committee or its designee.

 

	
5.
	
No Stockholder Rights and Dividends. Participant shall have no rights or privileges of a stockholder of the Company and no right to vote the Shares underlying the RSUs until the date on which the Shares underlying the RSUs are issued or transferred to Participant pursuant to this Award Agreement.  However, Participant shall be credited with dividend equivalents in respect of dividends paid to stockholders generally and such dividend equivalents shall be subject to the same terms and conditions (including vesting, payment and forfeitability) as the RSUs to which they were credited.  Such dividend equivalents 

2

NAI-1515108574v2 

 

		
will be paid in cash at the same time as the RSUs to which they relate are settled in accordance with Section 3 and the other terms of this Award Agreement.

 

	
6.
	
Adjustment. In the event of certain corporate transactions, the Committee shall adjust the RSUs as set forth in Section 3.2 of the Plan.

 

	
7.
	
Taxes and Withholding.  Participant shall satisfy any sums required by federal, state or local tax law to be withheld related to the RSUs by paying the Company or its Affiliate in cash the amount of such tax obligations (including, without limitation, by the Company or its Affiliate withholding such amounts from the Participant’s wages, which the Participant hereby authorizes).  Notwithstanding the foregoing, the Committee, by specific prior approval, may permit Participant to satisfy such tax obligations by having the Company or its Affiliate deduct from the number of Shares otherwise deliverable to Participant in settlement of the RSUs a number of whole Shares having a Fair Market Value not in excess of the amount of such tax obligations determined by the maximum applicable statutory withholding rates.  The Company shall not be obligated to guarantee any particular tax result for Participant hereunder, and Participant shall be responsible for any taxes imposed on Participant with respect to the RSUs and any Shares issued in respect thereof. Participant acknowledges and understands that Participant should consult a tax advisor regarding Participant’s tax obligations related to the RSUs and the Shares issued in respect thereof.

 

	
8.
	
Compliance with Laws and Regulations. The issuance of the RSUs pursuant to the Award shall be subject to compliance by the Company and Participant with all applicable laws relating thereto.

 

	
9.
	
Construction. This Award Agreement and the Award evidenced hereby are made and granted pursuant to the Plan and are in all respects limited by and subject to the terms of the Plan. In the event of any conflict between the provisions of this Award Agreement and the terms of the Plan, the terms of the Plan shall be controlling. All decisions of the Committee with respect to any question or issue arising under the Plan or this Award Agreement shall be conclusive and binding on all persons having an interest in the Award.  Articles 11-18 of the Plan shall apply mutatis mutandis as if set forth herein.  Notwithstanding anything to the contrary in the Plan, this Award Agreement may not be modified in any manner adverse to Participant other than pursuant to a written agreement signed by Participant.

 

	
10.
	
Governing Law. The interpretation, performance and enforcement of this Award Agreement shall be governed by the laws of the State of Delaware applicable to contracts made in and to be solely performed in the State of Delaware.

 

	
11.
	
Employment at Will.  Nothing in this Award Agreement or in the Plan shall confer upon Participant any right to remain in employment or service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company (or any Subsidiary or Affiliate employing or retaining Participant) or of Participant, which rights are hereby expressly reserved by each, to terminate Participant’s service or employment at any time for any reason, with or without Cause.

 

3

NAI-1515108574v2 

 

 

	
12.
	
Participant Acceptance. Participant must accept the terms and conditions of this Award Agreement either electronically through the electronic acceptance procedure established by the Company or through a written acceptance delivered to the Company in a form satisfactory to the Company. In no event shall any RSUs or Shares be issued under this Award Agreement in the absence of such acceptance.

4

NAI-1515108574v2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00333-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00333-of-00352.parquet"}]]