Document:

exv10w9

 

EXHIBIT 10.9

Safeguard Scientifics, Inc., a Pennsylvania corporation (the “Company”), hereby grants to the
grantee named below (“Grantee”) an option (this “Option”) to purchase the total number of shares
shown below of Common Stock of the Company (the “Shares”) at the exercise price per share set forth
below, subject to all of the terms and conditions on the reverse side of this Stock Option Grant
Certificate and the 2004 Equity Compensation Plan (the “Plan”). Unless otherwise defined herein,
capitalized terms used herein shall have the meanings ascribed to them in the Plan. The terms and
conditions set forth on the reverse side hereof and the terms and conditions of the Plan are
incorporated herein by reference. This Stock Option Grant Certificate shall constitute the
“Agreement” for this Option as such term is used in the Plan.

	 	 	 	 	 
	Grant Date:

	 	December 15, 2006

	 
	 	 	 	 
	Stock Option

	 	Nonqualified

	 
	 	 	 	 
	Shares Subject to Option:

	 	 	150,000	 
	 
	 	 	 	 
	Exercise Price Per Share:

	 	$	2.335	 
	 
	 	 	 	 
	Term of Option:

	 	8 years

Shares subject to issuance under this Option will vest and become exercisable in accordance with the provisions of the Agreement
between Grantee and the Company dated as of December 15, 2006 (“Consulting Agreement”) as follows, provided that in no event shall
the number of stock options that may vest exceed 150,000:

(i) Upon the timely and complete filing of the Company’s Form 10-K for the year ending December 31, 2006 (“Form 10-K”) with the SEC
during the term of the Consulting Agreement, the product of (x) 15,000 times (y) the number of completed calendar months elapsed from
December 15, 2006 through the date of such filing;

(ii) Following the timely and complete filing of the Form 10-K, an additional 15,000 stock options shall vest on the first date of
each calendar month beginning after such filing, provided that Grantee continues to provide services under the Consulting Agreement
on each such date; and

(iii) Upon the satisfactory completion of Grantee’s services relating to the transition of his duties and responsibilities to his
successor, as determined by the Company’s Chief Executive Officer in his sole discretion, or upon Grantee’s appointment as the
Company’s Chief Financial Officer (and the removal of the term “Acting” from his titles), all stock options that have not previously
vested and become exercisable shall become fully vested and exercisable.

The Company shall have the right, without the consent of Grantee, to amend the terms of this Stock Option Grant Certificate to the
extent necessary or appropriate, as determined by the Company in its sole discretion, to conform to Section 409A of the Internal
Revenue Code of 1986, as amended.

Grantee hereby acknowledges receipt of a copy of the Plan, represents that Grantee has read the Plan and understands the terms and
provisions of the Plan, and accepts this Option subject to all the terms and conditions of the Plan and this Stock Option Grant
Certificate. Grantee acknowledges that the grant and exercise of this Option, and the sale of Shares obtained through the exercise
of this Option, may have tax implications that could result in adverse tax consequences to the Grantee and that Grantee is not
relying on the Company for any tax, financial or legal advice and will consult a tax adviser prior to such exercise or disposition.

This Option is designated a nonqualified stock option. It is not an incentive stock option within the meaning of Section 422 of
the Internal Revenue Code of 1986, as amended (the “Code”).

In witness whereof, this Stock Option Grant Certificate has been executed by the Company by a duly authorized officer as of the
date specified hereon.

Safeguard Scientifics, Inc.

	 	 	 
	/s/ Peter J. Boni
 

Peter J. Boni, President and Chief Executive Officer

	 	 
	 
	 	 
	/s/ Stephen Zarrilli
	 	 
	 

	 	 
	
Stephen Zarrilli
	 	 

 

 

1. Option Expiration. All stock options that vest pursuant to this Agreement shall continue to be exercisable, subject to the
terms and conditions of the Plan and this Agreement, until the earlier of (a) the eighth anniversary of the grant date and (b) the
third anniversary of the cessation or termination of Grantee’s services as the Company’s Acting Chief Financial Officer or Chief
Financial Officer. Any portion of the Option that is not vested at the time the Grantee ceases to provide services to the Company
under the Consulting Agreement shall immediately terminate.

2. Exercise Procedures.

     (a)Subject to the provisions of this Stock Option Grant Certificate and the Plan, the Grantee may exercise part or all of the
vested Option by giving the Company written notice of intent to exercise in the manner provided in Paragraph 11 below, specifying the
number of Shares as to which the Option is to be exercised. On the delivery date, the Grantee shall pay the exercise price (i) in
cash, (ii) by delivering Shares of the Company (duly endorsed for transfer or accompanied by stock powers signed in blank) which
shall be valued at their fair market value on the date of delivery, or (iii) by such other method as the Committee may approve,
including payment through a broker in accordance with procedures permitted by Regulation T of the Federal Reserve Board. The
Committee may impose from time to time such limitations as it deems appropriate on the use of Shares of the Company to exercise the
Option.

     (b)The obligation of the Company to deliver Shares upon exercise of the Option shall be subject to all applicable laws, rules,
and regulations and such approvals by governmental agencies as may be deemed appropriate by the Committee, including such actions as
Company counsel shall deem necessary or appropriate to comply with relevant securities laws and regulations. The Company may require
that the Grantee (or other person exercising the Option after the Grantee’s death) represent that the Grantee is purchasing Shares
for the Grantee’s own account and not with a view to or for sale in connection with any distribution of the Shares, or such other
representation as the Board deems appropriate. All obligations of the Company under this Stock Option Grant Certificate shall be
subject to the rights of the Company as set forth in the Plan to withhold amounts required to be withheld for any taxes, if
applicable. Subject to Committee approval, the Grantee may elect to satisfy any income tax withholding obligation of the Company
with respect to the Option by having Shares withheld up to an amount that does not exceed the minimum marginal tax rate for federal
(including FICA), state and local tax liabilities.

3. Change of Control. The provisions of the Plan applicable to a Change of Control shall apply to the Option, and, in the event of
a Change of Control, the Board may take such actions as it deems appropriate pursuant to the Plan.

4. Restrictions on Exercise. Only the Grantee may exercise the Option during the Grantee’s lifetime. After the Grantee’s
death, the Option shall be exercisable (subject to the limitations specified in the Plan) solely by the legal representatives of the
Grantee, or by the person who acquires the right to exercise the Option by will or by the laws of descent and distribution, to the
extent that the Option is exercisable pursuant to this Stock Option Grant Certificate. Notwithstanding the foregoing, the Committee
may provide, at or
after grant, that a Grantee may transfer nonqualified stock options pursuant to a domestic relations order or to family members or
other persons or entities on such terms as the Committee may determine.

5. Grant Subject to Plan Provisions. This grant is made pursuant to the Plan, the terms of which are incorporated herein by
reference, and in all respects shall be interpreted in accordance with the Plan. The grant and exercise of the Option are subject to
the provisions of the Plan and to interpretations, regulations and determinations concerning the Plan established from time to time
by the Committee in accordance with the provisions of the Plan, including, but not limited to, provisions pertaining to (i) rights
and obligations with respect to withholding taxes, (ii) the registration, qualification or listing of the Shares, (iii) capital or
other changes of the Company, and (iv) other requirements of applicable law. The Committee shall have the authority to interpret and
construe the Option pursuant to the terms of the Plan, and its decisions shall be conclusive as to any questions arising hereunder.

6. No Employment Rights. The grant of the Option shall not confer upon the Grantee any right to be retained by or in the employ of
the Company and shall not interfere in any way with the right of the Company to terminate the Grantee’s employment or service at any
time. The right of the Company to terminate at will the Grantee’s employment or service at any time for any reason is specifically
reserved. No policies, procedures or statements of any nature by or on behalf of the Company (whether written or oral, and whether
or not contained in any formal employee manual or handbook) shall be construed to modify this Grant Letter or to create express or
implied obligations to the Grantee of any nature.

7. No Stockholder Rights. Neither the Grantee, nor any person entitled to exercise the Grantee’s rights in the event of the
Grantee’s death, shall have any of the rights and privileges of a stockholder with respect to the Shares subject to the Option until
certificates for Shares have been issued upon the exercise of the Option.

8. No Disclosure. The Grantee acknowledges that the Company has no duty to disclose to the Grantee any material information
regarding the business of the Company or affecting the value of the Shares before or at the time of a termination of the Grantee’s
employment, including without limitation any plans regarding a public offering or merger involving the Company.

9. Assignment and Transfers. The rights and interests of the Grantee under this Stock Option Grant Certificate may not be sold,
assigned, encumbered or otherwise transferred except, in the event of the death of the Grantee, by will or by the laws of descent and
distribution. In the event of any attempt by the Grantee to alienate, assign, pledge, hypothecate, or otherwise dispose of the
Option or any right hereunder, except as provided for in this Stock Option Grant Certificate, or in the event of the levy or any
attachment, execution or similar process upon the rights or interests hereby conferred, the Company may terminate the Option by
notice to the Grantee, and the Option and all rights hereunder shall thereupon become null and void. The rights and protections of
the Company hereunder shall extend to any successors or assigns of the Company and to the Company’s parents, subsidiaries, and
affiliates. This Stock Option Grant Certificate may be assigned by the Company without the Grantee’s consent.

10. Applicable Law. The validity, construction, interpretation and effect of this instrument shall be governed by and determined in
accordance with the laws of the Commonwealth of Pennsylvania.

11. Notice. Any notice to the Company provided for in this instrument shall be addressed to the Company in care of the Chief
Financial Officer at the Company’s headquarters and any notice to the Grantee shall be addressed to such Grantee at the current
address shown on the payroll of the Company, or to such other address as the Grantee may designate to the Company in writing. Any
notice shall be delivered by hand, sent by telecopy or enclosed in a properly sealed envelope addressed as stated above, registered
and deposited, postage prepaid, in a post office regularly maintained by the United States Postal Service.exv10w10

 

EXHIBIT 10.10

SAFEGUARD SCIENTIFICS, INC.

RESTRICTED STOCK GRANT TERMS

DATE OF GRANT: December 15, 2006

     Safeguard Scientifics, Inc. (the “Company”) adopted the 1999 Equity Compensation Plan (the
“Plan”) to give participants an ownership interest in the Company and to create an incentive for
participants to contribute to our growth, thereby benefiting our stockholders, and aligning the
economic interests of the participants with those of our stockholders. This Restricted Stock Grant
is granted to John A. Loftus (the “Grantee”) this 15th day of December, 2006, in accordance with
the terms of the Plan. Capitalized terms used and not otherwise defined in this Grant are used
herein as defined in the Plan.

1. Stock Grant

     The Company hereby offers to the Grantee the opportunity to acquire from the Company 42,827
shares of common stock of the Company, $.10 par value (the “Shares”), for no consideration.

     Subject to the Grantee’s acceptance of this offer, the Company will issue the Shares in the
name of the Grantee, which Shares shall be held in book entry at Mellon Investor Services, LLC, the
Company’s transfer agent, and shall be subject to restrictions on transfer as set forth in this
Restricted Stock Grant.

2. Acceptance by the Grantee; Deposit of Certificates into Escrow

     The Grantee shall signify acceptance of the offer to acquire the Shares by delivering to the
Company, as escrow agent (the “Escrow Agent”):

     (i) a copy of the Acceptance of Grant which has been executed by the Grantee; and

     (ii) if, after consulting with his or her personal tax and financial advisor, the Grantee has
determined that an 83b election should be made, two executed copies of an 83(b) Election (you may
obtain the appropriate form from Dee Blackburn if you desire to make an 83(b) Election).

     Upon receipt from the Grantee of the foregoing items, the Company shall cause Mellon Investor
Services, LLC to issue the Shares in Grantee’s name, in book entry, to be held in accordance with
the terms of this Grant.

3. Vesting and Forfeiture of Unvested Shares.

     (a) In the event of Grantee’s termination of employment for any reason other than as set forth
in Section 3(b) below, Grantee shall forfeit all Shares in which Grantee is not vested at the time
of his cessation of service in accordance with the Vesting Schedule set forth in Section 3(b)
(hereinafter referred to as the “Unvested Shares”).

 

 

     (b) Grantee shall acquire a vested interest in, and the forfeiture provisions of this
paragraph shall lapse with respect to, the Shares as follows:

One-third of the shares on December 15, 2007;

One-third of the shares on December 15, 2008; and

One-third of the shares on December 15, 2009;

provided, however, that in the event Grantee’s employment terminates as a result of (i) death, (ii)
permanent disability, (iii) retirement on or after his 65th birthday, or (iv) a Change
of Control as set forth in his agreement with the Company dated February 25, 2005, the Grantee
shall be deemed to be fully vested in any Unvested Shares.

4. Restrictions

     (a) Unvested Shares. All Unvested Shares will be held by the Escrow Agent until they
become vested. Upon receipt of the taxes which the Company is required to withhold as set forth in
Section 7 below, the Escrow Agent shall deliver to the Grantee the Share certificate registered in
the Grantee’s name for the Vested Shares. The Grantee may not sell, assign, transfer, pledge or
otherwise dispose of any Unvested Shares until the scheduled Vesting Date and then only after all
applicable withholding taxes have been paid by the Grantee.

     (b) Impermissible Transfers Void. Any attempt to assign, transfer, pledge or
otherwise dispose of any Shares contrary to the provisions of this Grant, and the levy of any
execution, attachment or similar process upon any Unvested Shares, shall be null and void and
without effect.

5. Effect of Changes in Shares

     If any change is made to the common stock of the Company by reason of merger, consolidation,
reorganization, recapitalization, stock dividend, stock split, combination of shares, exchange of
shares, or any other change in capital structure made without receipt of consideration, then any
new, substituted, or additional securities distributed with respect to the Shares shall be
immediately subject to the restrictions imposed upon the Shares to the same extent that the Shares
immediately prior thereto have been covered by such provisions.

6. Voting of Shares; Dividends

     The Grantee shall be entitled to exercise all voting rights in connection with the Shares.

     Effective as of the date on which the Grantee signifies acceptance of the Shares, the Grantee
shall be entitled to receive any dividends, rights or other distributions payable to stockholders
of record of the Company on and after the date of such acceptance; provided, however, that the
Grantee shall not have any dividend rights or any other rights whatsoever with respect to any
Shares which are forfeited in accordance with the terms of this Agreement.

 

 

7. Withholding of Taxes

     The Company shall have the right to require the Grantee to pay to the Company, in cash, the
amount of any taxes which the Company is required to withhold in respect of this Grant or to take
whatever action it deems necessary to protect the interests of the Company in respect of such tax
liabilities, including, without limitation, withholding a portion of the Shares, selling for
Grantee’s account a portion of the Shares and applying the net proceeds thereof to the payment of
such taxes, or deducting from other wages, bonuses or other amounts payable to the Grantee by the
Company, any federal, state or local taxes required by law to be withheld with respect to such
Grant.

8. No Contract for Employment

     Nothing contained in this Grant shall be deemed to require the Company to continue the
Grantee’s employment. Except as may be provided in a written employment contract executed by a
duly authorized officer of the Company, the Grantee shall at all times be an “employee-at-will” of
the Company, and the Company may discharge the Grantee at any time for any reason, with or without
cause.

9. Administration

     This Grant is made pursuant to the terms, conditions and other provisions of the Plan as in
effect on the Date of Grant, and as the Plan may be amended from time to time in accordance with
the provisions of the Plan. All questions of interpretation and application of the Plan and of
this Grant shall be determined by the Compensation Committee of the Company’s Board of Directors,
in its discretion, and any such determination shall be final and binding upon all persons. The
validity, construction and effect of this Grant shall be determined in accordance with the laws of
the Commonwealth of Pennsylvania, without giving effect to the principles of conflicts of law
thereof.

SAFEGUARD SCIENTIFICS, INC.

/s/ Steven J. Feder

Steven J. Feder

Senior Vice President & General Counsel

 

 

ACCEPTANCE OF GRANT

     John A. Loftus (the “Grantee”) acknowledges and agrees with the terms and conditions of the
attached Grant Letter pursuant to which Safeguard Scientifics, Inc. (the “Company”) has offered the
Grantee the opportunity to acquire 42,827 shares of common stock of the Company, $.10 par value
(the “Shares”).

     As a condition to the issuance of the Shares, the Grantee hereby represents and warrants to
the Company and agrees with the Company as follows:

     1. Disposition of Shares. The Grantee hereby agrees not to sell, assign, transfer,
pledge or otherwise dispose of any portion of the Shares unless and until the Grantee shall have
complied with all of the requirements of the Grant.

     2. Section 83(b) Election. The Grantee understands that under Section 83 of the
Internal Revenue Code of 1986, as amended (the “Code”), the difference between the purchase price
(if any) paid for the Shares and their fair market value on the date of vesting would be reportable
as ordinary income at such time. The Grantee understands that by filing an election with the
Internal Revenue Service pursuant to Section 83(b) of the Code within 30 days after the Date of
Grant, in lieu of the foregoing, the Grantee will be taxed at the time the Shares are granted to
the Grantee on the fair market value of the Shares.

          The Section 83(b) election, which may avoid adverse tax consequences in the future, must be
made within the 30-day period after the Date of Grant. The form for making this election may be
obtained from Dee Blackburn. THE GRANTEE ACKNOWLEDGES THAT IT IS THE GRANTEE’S SOLE RESPONSIBILITY
TO SEEK ADVICE REGARDING SECTION 83(B). THE GRANTEE REPRESENTS THAT HE OR SHE IS RELYING SOLELY ON
HIS OR HER ADVISORS WITH RESPECT TO THIS SECTION 83(B) ELECTION, AND THE COMPANY SHALL HAVE NO
RESPONSIBILITY OR LIABILITY IN CONNECTION THEREWITH.

     3. Withholding of Taxes. The Grantee understands that the Company shall have the
right to require the Grantee to pay to the Company the amount of any taxes which the Company is
required to withhold in respect of this grant or to take whatever action it deems necessary to
protect the interests of the Company in respect of such tax liabilities, including, without
limitation, withholding a portion of the Shares, selling for Grantee’s account a portion of the
Shares and applying the net proceeds thereof to the payment of such taxes, or deducting from other
wages, bonuses or other amounts payable to the Grantee by the Company, any federal, state or local
taxes required by law to be withheld with respect to such Grant.

     The Grantee understands that Vested Shares will not be released to the Grantee until such time
as the Company has received any taxes that the Company is required to withhold in respect of the
Vested Shares.

 

 

     The Grantee, intending to be legally bound hereby, has executed this Acceptance of Grant as of
the date set forth below.

Dated: January 8, 2007

	 	 	 	 	 
	 	GRANTEE:

 	 
	 	/s/ John A. Loftus
 	 
	 	John A. Loftus

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