Document:

Exhibit 10.4

 

SILICON
LABORATORIES INC.

2009
STOCK INCENTIVE PLAN

 

STOCK
OPTION GRANT NOTICE AND 

STOCK
OPTION AWARD AGREEMENT

U.S.
PARTICIPANTS

 

Silicon Laboratories Inc., a Delaware corporation
(the “Company”), pursuant
to its 2009 Stock Incentive Plan (the “Plan”), hereby
grants to the holder listed below (the “Participant”), an
option to purchase the number of shares of the Company’s Common Stock, par
value $0.0001 (“Shares”), set forth below
(the “Option”).  This Option is subject to all of the
terms and conditions set forth herein and in the Stock Option Award Agreement
attached hereto (the “Award Agreement”) and in
the Plan, which are incorporated herein by reference.  Unless otherwise defined herein, the terms
defined in the Plan shall have the same defined meanings in this Grant Notice
and the Award Agreement.

 

	
  Participant:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Grant Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Vesting Commencement Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exercise Price per Share:

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  Total Number of Shares Subject
  to the Option:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Expiration Date:*

  	
   

  	
   

  

 

	
  Type of Option:

  	
   

  	
  o  Incentive Stock Option

  	
  o  Non-Qualified Stock Option

  
	
   

  	
   

  
	
  Vesting Schedule:

  	
  Unless otherwise provided in the Award Agreement, the Option shall
  vest

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  .

  

 

	
  *Expiration Date:

  	
  As an administrative matter, the vested portion of this Option may be
  exercised only until the close of the NASDAQ Global Select Market on the
  Expiration Date or the termination date set forth under Sections 3 or 7 of
  the Award Agreement or, if such date is not a trading day on the NASDAQ
  Global Select Market, the last trading day before such date. Any later
  attempt to exercise this Option will not be honored.

  

 

By his or her signature below or by electronic
acceptance or authentication in a form authorized by the Company, the
Participant agrees to be bound by the terms and conditions of the Plan, the
Award Agreement and this Grant Notice. 
The Participant has reviewed the Award Agreement, the Plan and this
Grant Notice in their entirety, has had an opportunity to obtain the advice of
counsel prior to executing this Grant Notice and fully understands all
provisions of this Grant Notice, the Award Agreement and the Plan.  The Participant hereby agrees to accept as
binding, conclusive and final all decisions or interpretations of the Committee
upon any questions arising under the Plan or relating to the Option.

 

 

	
  SILICON
  LABORATORIES INC.

  	
  PARTICIPANT

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Print Name:

  	
   

  	
   

  	
  Print Name:

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

SILICON
LABORATORIES INC.

2009
STOCK INCENTIVE PLAN

 

STOCK OPTION AWARD AGREEMENT

U.S.
PARTICIPANTS

 

Silicon Laboratories Inc. (the “Company”)
has granted to the Participant named in the Stock Option Grant Notice (the “Grant Notice”) to which this Stock Option Award
Agreement (this “Award Agreement”)
is attached an Award consisting of Stock Options subject to the terms and
conditions set forth in the Grant Notice and this Award Agreement.  The Award has been granted pursuant to the
Silicon Laboratories Inc. 2009 Stock Incentive Plan (the “Plan”), as amended to the Grant Date, the
provisions of which are incorporated herein by reference.

 

Unless otherwise defined herein or in the Grant Notice, capitalized
terms shall have the meanings assigned under the Plan.

 

1.                                      THE
AWARD.

 

The
Company hereby awards to the Participant, as of the Grant Date set forth in the
Grant Notice, an Option to purchase up to the number of Shares specified in the
Grant Notice at the exercise price per Share set forth in the Grant Notice (the
“Exercise Price”) and subject to the
terms and conditions of the Plan.

 

If
designated in the Grant Notice as an Incentive Stock Option, the Option is
intended to qualify as an Incentive Stock Option as defined in Section 422
of the Code.  Nevertheless, to the extent
that the value of the Option exceeds the $100,000 rule of Code Section 422(d),
the Option shall be treated as a Non-Qualified Stock Option.  Further, if for any other reason the Option
(or a portion thereof) shall not qualify as an Incentive Stock Option, then the
Option or the disqualifying portion thereof shall be regarded as a
Non-Qualified Stock Option under the Plan. 
In no event shall the Company, or any Subsidiary or Affiliate of the
Company or their respective employees or directors have any liability to the
Participant due to the failure of the Option to qualify as an Incentive Stock
Option.

 

2.                                      VESTING
OF OPTION.

 

2.1                               Dates
of Exercise.  Except as otherwise provided in this
Agreement, the Option shall become exercisable for Shares in one or more
installments as specified in the Grant Notice. 
As the Option becomes exercisable for such installments, those
installments shall accumulate, and the Option shall remain exercisable for the
accumulated installments until the Expiration Date or sooner termination of the
Option term under Sections 3 or 7, below.

 

2.2                               Leave of Absence / Part-Time
Work.  Unless otherwise determined by the Committee, the following provisions
shall apply upon the Participant’s commencement of an authorized leave of
absence:

 

(a)           Authorized
Leave.  The vesting schedule
in effect under the Grant Notice shall be frozen as of the first fifteenth (15th) day of a month immediately
following the commencement of the authorized leave, and the Option shall not become
exercisable for any additional installments during the period Participant
remains on such leave.  Vesting of the Option
shall resume upon the first fifteenth (15th) day of a month immediately following the
Participant’s resumption of active Service.

 

 

(b)           Vesting
Credit for Leave.  Should the
Participant resume active Service within sixty (60) days after the start date
of the authorized leave, the Participant shall, for purposes of the vesting
schedule set forth in the Grant Notice, receive vesting credit for the entire
period of such leave.  If the Participant
does not resume active Service within such sixty (60)-day period, then no
vesting credit shall be given for the period of such leave.

 

(c)           Consequence
of Leave upon Incentive Stock Option.  If the Option is designated as an Incentive
Stock Option in the Grant Notice, and the leave of absence continues for more
than ninety (90) days, then the Option shall automatically convert to a
Non-Qualified Stock Option at the end of the three (3)-month period measured
from the ninety-first (91st) day of such leave, unless the Participant’s
reemployment rights are guaranteed by law or by a contract.  Following any such conversion of the Option,
all subsequent exercises of the Option, whether effected before or after the
Participant’s return to active Employee status, shall result in an immediate
taxable event, and the Company shall be required to collect from the
Participant the income and employment withholding taxes applicable to such
exercise.

 

(d)           Term of
Option Upon Leave.  In no
event shall the Option become exercisable for any additional Shares or otherwise
remain outstanding if the Participant does not resume active Service prior to
the Expiration Date of the Option term.

 

(e)           Part-Time
Work.  If the Participant
commences working on a part-time basis, then the vesting schedule specified in
the Grant Notice may be adjusted in accordance with the Company’s part-time
work policy or the terms of an agreement between the Participant and the
Company pertaining to the Participant’s part-time schedule.

 

2.3                               Term
of Option.  The Option shall have a maximum term of ten (10) years
measured from the Grant Date and shall accordingly expire at the close of the
NASDAQ Global Select Market on the Expiration Date, unless sooner terminated in
accordance with Sections 3 or 7, below.

 

3.                                      TERMINATION
OF SERVICE.

 

The Option term specified in
Section 2.3 shall terminate (and the Option shall cease to be outstanding)
prior to the Expiration Date should any of the following provisions become
applicable:

 

3.1          General Rule.  Should
the Participant cease to provide services to the Company (or any Subsidiary or
Affiliate) in the capacity of an Employee, Director or Consultant (collectively
referred to herein as “Service”)
for any reason (other than death, Disability or Misconduct) while the Option is
outstanding, then the Option shall remain exercisable until the earlier
of (i) the expiration of the three (3)-month period measured from the date
of such cessation of Service or (ii) the Expiration Date.

 

3.2          Death of the
Participant.  Should the Participant cease Service by
reason of his or her death, the vesting of the Option shall automatically
accelerate so that the Option shall become exercisable for all of the Shares at
the time subject to the Option and may be exercised by the personal
representative of the Participant’s estate, the person or persons to whom the
Option is transferred pursuant to the Participant’s will or in accordance with
the laws of descent and distribution until the earlier of (i) the
expiration of the twelve (12)-month period measured from the date of the
Participant’s death or (ii) the Expiration Date.

 

3.3          Disability of the
Participant.  Should the Participant cease Service by
reason of Disability while the Option is outstanding, then the Option shall
remain exercisable until the earlier of (i) the expiration of the twelve
(12)-month period measured from the date of such cessation of Service or (ii) the
Expiration Date.

 

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3.4          Number of Exercisable
Shares Post-Service.  Except in the event of the Participant’s cessation
of Service by reason of his or her death, during the applicable post-Service
exercise period, the Option may not be exercised in the aggregate for more than
the number of vested Shares for which the Option is exercisable on the date of
the Participant’s cessation of Service. 
Upon the expiration of the applicable exercise period or (if earlier)
upon the Expiration Date, the Option shall terminate and cease to be
outstanding for any vested Shares for which the Option has not been
exercised.  However, the Option shall,
immediately upon the Participant’s cessation of Service for any reason other
than the Participant’s death, terminate and cease to be outstanding to the
extent the Option is not otherwise at that time exercisable for vested shares.

 

3.5          Termination for Misconduct. 
Should the Participant’s Service be terminated for Misconduct or should
the Participant engage in Misconduct while the Option is outstanding, then the
Option shall terminate immediately and cease to be outstanding.  In the event the Participant’s Service is
suspended pending an investigation of whether the Participant’s Service will be
terminated for Misconduct, all of the Participant’s rights under the Option,
including the right to exercise the Option, shall be suspended during the
investigation period.

 

3.6          Cessation of Service.  For
purposes of this Award Agreement, the Participant’s period of Service shall not
include any period of notice of termination, (whether express or implied).  The Participant’s date of cessation of Service
shall mean the date upon which the Participant ceases active performance of
services for the Company, a Subsidiary or Affiliate, as determined by the
Company following the provision of such notification of termination or
resignation from Service and shall be determined solely by this Award Agreement
and without reference to any other agreement, written or oral, including the
Participant’s contract of employment (if any).

 

4.                                      EXERCISE
OF OPTION.

 

4.1          Method of
Exercise.  In order to exercise the Option with respect
to all or any part of the Shares for which the Option is at the time
exercisable, the Participant (or any other person or persons exercising the
Option) must take the following actions:

 

(a)           Execute and deliver
to the Company a notice of exercise (the “Notice of Exercise”)
in the form authorized by the Company, which may be electronic or written.  An electronic Notice of Exercise must be
digitally signed or authenticated by the Participant in such manner as required
by the notice and transmitted to the applicable authorized representative of
the Company (including a Company-designated brokerage firm).  In the event that the Participant is not
authorized or is unable to provide an electronic Notice of Exercise, the Option
shall be exercised by a written Notice of Exercise addressed to the Company,
which shall be signed by the Participant and delivered in person, by certified
or registered mail, return receipt requested, by confirmed facsimile
transmission, or by such other means as the Company may permit, to the
applicable authorized representative of the Company (including a
Company-designated brokerage firm).  Each
Notice of Exercise, whether electronic or written, must state the Participant’s
election to exercise the Option, the number of whole Shares for which the
Option is being exercised and such other representations and agreements as to
the Participant’s investment intent with respect to such Shares as may be
required pursuant to the provisions of this Award Agreement.  Further, each Notice of Exercise must be
received by the Company prior to the termination of the Option as set forth in Section 3
or 7.

 

(b)                                 Pay the aggregate Exercise Price for the
purchased Shares in one or more of the following forms:

 

3

 

(i)            cash or check which, in the Company’s
sole discretion, shall be made payable to a Company-designated brokerage firm
or the Company; or

 

(ii)           with the consent of the Committee,
surrender Shares issuable upon the exercise of the Option having a Fair Market
Value on the date of exercise equal to the aggregate Exercise Price of the
Shares plus all applicable tax withholding obligations of the Company (or a
Subsidiary or Affiliate) with respect to which the Option or portion thereof is
being exercised; or

 

(iii)          as permitted by applicable law,
through a special sale and remittance procedure pursuant to which the
Participant (or any other person or persons exercising the Option) shall
concurrently provide irrevocable instructions (A) to a Company-designated
brokerage firm to effect the immediate sale of the purchased Shares and remit
to the Company, out of the sale proceeds available on the settlement date,
sufficient funds to cover the aggregate Exercise Price payable for the
purchased Shares plus all applicable tax withholding obligations of the Company
(or a Subsidiary or Affiliate) by reason of such exercise and (B) to the
Company to deliver the certificates for the purchased Shares directly to such
brokerage firm in order to complete the sale.

 

Except to the extent the
sale and remittance procedure is utilized in connection with the exercise of
the Option, payment of the Exercise Price must accompany the Notice of Exercise
delivered to the Company (or a Company-designated brokerage firm) in connection
with the Option exercise.

 

(c)                                  Furnish to the
Company appropriate documentation that the person or persons exercising the
Option (if other than the Participant) have the right to exercise the Option.

 

(d)                                 Make
appropriate arrangements with the Company (or Subsidiary or Affiliate employing
or retaining the Participant) for the satisfaction of all applicable tax
withholding requirements applicable to the Option exercise.

 

(e)                                  As soon as
practical after the exercise date, the Company shall issue to or on behalf of
the Participant (or any other person or persons exercising the Option) the
purchased Shares (as evidenced by an appropriate entry on the books of the
Company or a duly authorized transfer agent of the Company), subject to the
appropriate legends and/or stop transfer instructions.

 

(f)                                    Notwithstanding
any other provisions of the Plan, this Award Agreement or any other agreement
to the contrary, if at the time this Option is exercised, Participant is
indebted to the Company (or any Subsidiary or Affiliate) for any reason, the
following actions shall be taken, as deemed appropriate by the Committee:

 

(i)            any Shares to be
issued upon such exercise shall automatically be pledged against Participant’s
outstanding indebtedness; and

 

(ii)           if this Option is
exercised in accordance with subsection 4.1(b)(iii) above, the after-tax
proceeds of the sale of Participant’s Shares shall automatically be applied to
the outstanding balance of Participant’s indebtedness.

 

4.2                               Restrictions on Exercise of the
Option and Issuance of Shares.  The exercise
of the Option and issuance of shares of Common Stock upon such exercise shall
be subject to compliance with all applicable requirements of U.S. federal,
state or foreign law with respect to such securities.  No Shares may be issued hereunder if the
issuance of such Shares would constitute a violation of any applicable U.S.
federal, state or foreign securities laws or other laws or regulations or the
requirements of any stock exchange or market system upon which the Common Stock
may then be listed.  The inability of 

 

4

 

the
Company to obtain from any regulatory body having jurisdiction the authority,
if any, deemed by the Company’s legal counsel to be necessary to the lawful
issuance of any Shares subject to the Option shall relieve the Company of any
liability in respect of the failure to issue such Shares as to which such
requisite authority shall not have been obtained.  As a condition to the exercise of the Option,
the Company may require the Participant to satisfy any qualifications that may be necessary or appropriate, to
evidence compliance with any applicable law or regulation and to make any
representation or warranty with respect thereto as may be requested by the Company.  Further, regardless of whether the transfer
or issuance of the Shares to be issued pursuant to the Option has been
registered under the Securities Act or has been registered or qualified under
the securities laws of any State, the Company may impose additional
restrictions upon the sale, pledge, or other transfer of the Shares (including
the placement of appropriate legends on stock certificates and the issuance of
stop-transfer instructions to the Company’s transfer agent) if, in the judgment
of the Company and the Company’s counsel, such restrictions are necessary in
order to achieve compliance with the provisions of the Securities Act, the
securities laws of any State, or any other law.

 

4.3                               Fractional Shares.  In no event may the Option be exercised for
any fractional shares.

 

4.4                               Excess
Shares.  If the Shares covered by this Award Agreement
exceed, as of the Grant Date, the number of Shares which may without
stockholder approval be issued under the Plan, then the Option shall be void
with respect to those excess Shares, unless stockholder approval of an
amendment sufficiently increasing the number of Shares issuable under the Plan
is obtained in accordance with the provisions of the Plan.

 

4.5                               Financing.  The
Committee may, in its absolute discretion and without any obligation to do so,
permit the Participant to pay the Exercise Price for the purchased Shares by
delivering a full-recourse promissory note payable to the Company.  The terms of any such promissory note
(including the interest rate, the requirements for collateral and the terms of
repayment) shall be established by the Committee in its sole discretion.

 

5.                                      TAX
WITHHOLDING AND ADVICE.

 

5.1          In General. 
Subject to Section 5.2, at the time the Grant Notice is executed,
or at any time thereafter as requested by the Company, the Participant hereby authorizes withholding from payroll
and any other amounts payable to the Participant, and otherwise agrees to make adequate provision for, any sums
required to satisfy the U.S. federal, state, and local taxes and (if
applicable) taxes imposed by jurisdictions outside of the United States
(including income tax, social insurance contributions, payment on account and
any other taxes) and required by law to be withheld with respect to any taxable
event arising as a result of the Participant’s participation in the Plan
(referred to herein as “Tax-Related Items”).

 

5.2          Withholding of Taxes.  The
Company or any Subsidiary or Affiliate, as appropriate, shall have the
authority and the right to deduct or withhold, or require the Participant to
remit to the Company (or to the applicable Subsidiary or Affiliate), an amount
sufficient to satisfy applicable Tax-Related Items or to take such other action
as may be necessary in the opinion of the Company or a Subsidiary or Affiliate,
as appropriate, to satisfy such Tax-Related Items (including hypothetical
withholding tax amounts if the Participant is covered under a Company tax
equalization policy).

 

The Committee may in its discretion and in satisfaction of the foregoing
requirement allow a Participant to elect to have the Company withhold Shares
otherwise issuable under the Option (or allow the return of Shares) having a
Fair Market Value equal to the sums required to be withheld.  Further, to 

 

5

 

the
extent determined appropriate by the Company in its discretion, the Company (or
Subsidiary or Affiliate, as applicable) will have the right (but not the
obligation) to satisfy any tax withholding obligations by one or a combination
of the following:

 

(a)           withholding from the
Participant’s wages or other cash compensation paid to the Participant by the
Company and/or a Subsidiary or Affiliate; or

 

(b)           withholding a number
of whole Shares otherwise deliverable to the Participant upon exercise of the
Option having a Fair Market Value equal to the Tax-Related Items obligations,
as determined by the Company as of the date on which the Tax-Related Items
obligations arise; or

 

(c)           withholding from the
proceeds from the sale of Shares otherwise deliverable to the Participant
having a Fair Market Value equal to the Tax-Related Items obligations, provided
the sale does not violate Company policy or applicable laws; any such sale is
on the Participant’s behalf and at the Participant’s direction pursuant to this
authorization; or

 

(d)           direct payment from
the Participant.

 

To avoid negative accounting treatment, the Company may withhold or
account for Tax-Related Items by considering applicable minimum statutory
withholding amounts or other applicable withholding rates.  If the Participant is covered by a Company
tax equalization policy, the Participant agrees to pay to the Company any
additional hypothetical tax obligation calculated and paid under the terms and
conditions of such tax equalization policy. 
No Shares shall be delivered hereunder to any Participant or other
person until the Participant or such other person has made arrangements
acceptable to the Committee for the satisfaction of these tax obligations with
respect to any taxable event concerning the Participant or such other person
arising as a result of the Participant’s participation in the Plan.

 

5.3                               Tax Advice.  The
Participant represents, warrants and acknowledges that the Company has made no
warranties or representations to the Participant with respect to the income tax
consequences of the transactions contemplated by this Award Agreement, and the
Participant is in no manner relying on the Company or the Company’s
representatives for an assessment of such tax consequences.  THE PARTICIPANT UNDERSTANDS THAT THE TAX LAWS
AND REGULATIONS ARE SUBJECT TO CHANGE. 
THE PARTICIPANT SHOULD CONSULT HIS OR HER OWN TAX ADVISOR REGARDING ANY OPTION.  NOTHING STATED HEREIN IS INTENDED OR WRITTEN
TO BE USED, AND CANNOT BE USED, FOR THE PURPOSE OF AVOIDING TAXPAYER PENALTIES.

 

6.                                      AUTHORIZATION
TO RELEASE NECESSARY PERSONAL INFORMATION.

 

The
Participant hereby authorizes and directs the Participant’s employer to
collect, use and transfer in electronic or other form, any personal information
(the “Data”) regarding the
Participant’s Service, the nature and amount of the Participant’s compensation
and the fact and conditions of the Participant’s participation in the Plan
(including, but not limited to, the Participant’s name, home address, telephone
number, date of birth, social security number (or any other social or national
identification number), salary, nationality, job title, number of Shares held
and the details of all options or any other entitlement to Shares awarded,
cancelled, exercised, vested, unvested or outstanding) for the purpose of
implementing, administering and managing the Participant’s participation in the
Plan.  The Participant understands that
the Data may be transferred to the Company or any of its Subsidiaries or
Affiliates, or to any third parties assisting in the implementation,
administration and management of the Plan, including any requisite transfer to
a brokerage firm or other third party assisting with the exercise of Options
under 

 

6

 

the Plan or with whom Shares
acquired upon exercise of this Option or cash from the sale of such Shares may
be deposited.  The Participant
acknowledges that recipients of the Data may be located in different countries,
and those countries may have data privacy laws and protections different from
those in the country of the Participant’s residence. Furthermore, the
Participant acknowledges and understands that the transfer of the Data to the
Company or any of its Subsidiaries or Affiliates, or to any third parties is
necessary for Participant’s participation in the Plan.

 

The Participant may at any
time withdraw the consents herein, by contacting the Company’s stock
administration department in writing. The Participant further acknowledges that
withdrawal of consent may affect the Participant’s ability to exercise or
realize benefits from the Option, and the Participant’s ability to participate
in the Plan.

 

7.                                      EFFECT
OF CHANGE IN CONTROL ON AWARD.

 

This Award Agreement shall
not in any way affect the right of the Company to adjust, reclassify,
reorganize or otherwise change its capital or business structure or to merge,
consolidate, dissolve, liquidate or sell or transfer all or any part of its
business or assets.

 

7.1          Acceleration of Vesting.  In
the event of a Change in Control, the Option, to the extent outstanding at that
time but not otherwise fully exercisable, shall automatically accelerate so
that the Option shall, immediately prior to the effective date of the Change in
Control, become exercisable for all of the Shares at the time subject to the
Option and may be exercised for any or all of those Shares as fully-vested
Shares.  No such acceleration of the
Option, however, shall occur if and to the extent: (i) the Option is, in
connection with the Change in Control, assumed or otherwise continued in full
force and effect by the successor corporation (or parent thereof) or replaced
with a comparable option to purchase shares of the capital stock of the
successor corporation (or parent thereof) pursuant to the terms of the Change
in Control or (ii) the Option is replaced with a cash incentive program of
the successor corporation which preserves the spread existing at the time of
the Change in Control on the Shares for which the Option is not otherwise at
that time exercisable (the excess of the Fair Market Value of those Shares over
the aggregate Exercise Price payable for such Shares) and provides for
subsequent pay-out in accordance with the same vesting schedule set forth in
the Grant Notice.  The determination of
option comparability under clause (i) shall be made by the Committee, and
such determination shall be final, binding and conclusive.

 

7.2          Termination of the
Option Upon Change in Control.  Immediately following the
consummation of the Change in Control, the Option shall terminate and cease to
be outstanding, except to the extent assumed by the successor corporation (or
parent thereof) or otherwise expressly continued in full force and effect
pursuant to the terms of the Change in Control.

 

7.3          Assumption of the
Option.  If the Option is assumed in connection with a
Change in Control, then the Option shall be appropriately adjusted, immediately
after such Change in Control, to apply to the number and class of securities
which would have been issuable to the Participant in consummation of such
Change in Control had the Option been exercised immediately prior to such
Change in Control, and appropriate adjustments shall also be made to the
Exercise Price, provided the aggregate Exercise Price shall remain the same.

 

7.4          Involuntary
Termination After Change in Control.  In the event that the Option
is, in connection with the Change in Control, either assumed by the successor
corporation (or parent thereof) or replaced with a comparable option of the
successor corporation (or parent thereof) and, within eighteen (18) months of
the effective date of the Change in Control, the Participant’s Service
terminates due to Involuntary Termination, the Option, to the extent
outstanding at that time but not 

 

7

 

otherwise fully exercisable,
shall automatically accelerate so that the Option shall, immediately upon the
effective date of the Involuntary Termination, become exercisable for all of
the Shares at the time subject to the Option and may be exercised for any or
all of those Shares as fully-vested Shares for a period of three (3) months.

 

8.                                      ADJUSTMENTS
FOR CHANGES IN CAPITAL STRUCTURE.

 

The Participant acknowledges
that the Option is subject to modification and termination in certain events as
provided in this Award Agreement and Article 11 of the Plan.

 

9.                                      NO
ENTITLEMENT OR CLAIMS FOR COMPENSATION.

 

9.1          The Participant’s rights, if any, in respect
of or in connection with this Option are derived solely from the discretionary
decision of the Company to permit the Participant to participate in the Plan
and to benefit from a discretionary Award. 
By accepting this Option, the Participant expressly acknowledges that
there is no obligation on the part of the Company to continue the Plan and/or
grant any additional options or other Awards to the Participant.  This Option is not intended to be
compensation of a continuing or recurring nature, or part of the Participant’s
normal or expected compensation, and in no way represents any portion of the Participant’s
salary, compensation, or other remuneration for purposes of pension benefits,
severance, redundancy, resignation or any other purpose.

 

9.2          Neither the Plan nor this Option shall be
deemed to give the Participant a right to remain an Employee, Director or
Consultant of the Company, a Subsidiary or an Affiliate.  The Company and its Subsidiaries and
Affiliates reserve the right to terminate the Service of the Participant at any
time, with or without cause, and for any reason, subject to applicable laws,
the Company’s Certificate  of
Incorporation  and Bylaws and a written
employment agreement (if any), and the Participant shall be deemed irrevocably
to have waived any claim to damages or specific performance for breach of
contract or dismissal, compensation for loss of office, tort or otherwise with
respect to the Plan, this Option or any other outstanding Award that is
forfeited and/or is terminated by its terms or to any future Award.

 

10.                               RIGHTS
AS A STOCKHOLDER.

 

The Participant shall not
have any stockholder rights with respect to the Shares until the Participant
exercises the Option, pays the Exercise Price and becomes a holder of record of
the purchased Shares or the purchased Shares are deposited in a Company-designated
brokerage account.

 

11.                               MISCELLANEOUS
PROVISIONS.

 

11.1                        Amendment.  The
Committee may amend this Award Agreement at any time; provided, however, that
no such amendment may adversely affect the Participant’s rights under this
Award Agreement without the consent of the Participant, except
to the extent such amendment is necessary to comply with applicable law,
including, but not limited to, Code Section 409A.  No
amendment or addition to this Award Agreement shall be effective unless in writing.

 

11.2                        Nontransferability of the Option.  Prior
to the issuance of Shares upon exercise, no right or interest of the
Participant in the Option nor any Shares subject to the Option shall be in any
manner pledged, encumbered, or hypothecated to or in favor of any party other
than the Company or a Subsidiary or Affiliate or shall become subject to any
lien, obligation, or liability of such Participant to any other party other
than the Company, or a Subsidiary or Affiliate. 
Except as otherwise provided by the Committee, no Option shall be
assigned, transferred or otherwise disposed of other than by will or the 

 

8

 

laws
of descent and distribution.  All rights
with respect to the Option shall be exercisable during the Participant’s
lifetime only by the Participant or the Participant’s guardian or legal
representative.

 

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

 

11.4                        Binding Effect.  This
Award Agreement shall inure to the benefit of the successors and assigns of the
Company and, subject to the restrictions on transfer set forth herein, be
binding upon the Participant and the Participant’s heirs, executors,
administrators, successors and assigns.

 

11.5                        Notices.  Any
notice required to be given or delivered to the Company under the terms of this
Award Agreement shall be in writing and addressed to the Company at its
principal corporate offices.  Any notice
required to be given or delivered to the Participant shall be in writing and
addressed to the Participant at the address maintained for the Participant in
the Company’s records or at the address of the local office of the Company or
of a Subsidiary or Affiliate at which the Participant works.

 

11.6                        Construction of Award Agreement.  The
Grant Notice, this Award Agreement, and the Option evidenced hereby (i) are
made and granted pursuant to the Plan and are in all respects limited by and
subject to the terms of the Plan, and (ii) constitute the entire agreement
between the Participant and the Company on the subject matter hereof and
supersede all proposals, written or oral, and all other communications between
the parties related to the subject matter. 
All decisions of the Committee with respect to any question or issue
arising under the Grant Notice, this Award Agreement or the Plan shall be
conclusive and binding on all persons having an interest in this Option.

 

11.7                        Governing Law.  The
interpretation, performance and enforcement of this Award Agreement shall be
governed by the laws of the State of Texas, U.S.A. without regard to the
conflict-of-laws rules thereof or of any other jurisdiction.

 

11.8                        Compliance.

 

(a)           Conformity
to Securities Laws.  The
Participant acknowledges that the Plan and this Agreement are intended to
conform to the extent necessary with all provisions of the Securities Act and
the Exchange Act and any and all regulations and rules promulgated by the
Securities and Exchange Commission thereunder, and State securities laws and
regulations.  Notwithstanding anything
herein to the contrary, the Plan shall be administered, and the Option is
granted and may be exercised, only in such a manner as to conform to such laws,
rules and regulations.  To the
extent permitted by applicable law, the Plan and this Award Agreement shall be
deemed amended to the extent necessary to conform to such laws, rules and
regulations.

 

(b)           Section 409A.  Notwithstanding any other provision of the
Plan, this Award Agreement or the Grant Notice, the Plan, this Agreement and
the Grant Notice shall be interpreted in accordance with, and incorporate the
terms and conditions required by, Code Section 409A (together with any
Department of Treasury regulations and other interpretive guidance issued
thereunder, including without limitation any such regulations or other guidance
that may be issued after the date hereof, “Section 409A”).  The Company reserves the right, to the extent
the Company deems necessary or advisable in its sole discretion, to
unilaterally amend or modify the Plan, this Award Agreement or the Grant Notice
or adopt other policies and procedures (including amendments, policies and
procedures with retroactive effect), or take any other actions, as the
Committee determines are necessary or appropriate to ensure that this Option
qualifies for exemption from, or complies with the requirements of, Section 409A;

 

9

 

provided,
however, that the Company makes no representation that the Option will be
exempt from, or will comply with, Section 409A, and makes no undertakings
to preclude Section 409A of the Code from applying to the Option or to
ensure that it complies with Section 409A.

 

(c)           Limitations
Applicable to Section 16 Persons.  Notwithstanding any other provision of the
Plan or this Award Agreement, if the Participant is subject to Section 16
of the Exchange Act, the Plan, the Option and this Award Agreement shall be
subject to any additional limitations set forth in any applicable exemptive rule under
Section 16 of the Exchange Act (including any amendment to Rule 16b-3
of the Exchange Act) that are requirements for the application of such
exemptive rule.  To the extent permitted
by applicable law, this Award Agreement shall be deemed amended to the extent
necessary to conform to such applicable exemptive rule.

 

11.9                        Notice
of Disqualifying Disposition of Incentive Stock Option Shares.  If
the Option granted herein is an Incentive Stock Option and if the Participant
sells or otherwise disposes of Shares acquired pursuant to the Incentive Stock
Option on or before (i) the date that is two (2) years after the
Grant Date or (ii) the date that is one (1) year after the exercise
date, the Participant shall immediately notify the Company in writing of such
disposition.  The Participant agrees that
the Participant may be subject to further income tax withholding by the Company
on the income received by the Participant.

 

11.10                 Administration.  The
Committee shall have the power to interpret the Plan and this Award Agreement
and to adopt such rules for the administration, interpretation and
application of the Plan as are consistent therewith and to interpret, amend or
revoke any such rules.  All actions taken
and all interpretations and determinations made by the Committee in good faith
shall be final and binding upon the Participant, the Company and all other
interested persons.  No member of the
Committee or the Board shall be personally liable for any action, determination
or interpretation made in good faith with respect to the Plan, this Award
Agreement or the Option.

 

11.11                 Counterparts.  The
Grant Notice may be executed in counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.

 

11.12                 Severability.  If
any provision of this Award Agreement is held to be unenforceable for any
reason, it shall be adjusted rather than voided, if possible, in order to achieve
the intent of the parties to the extent possible.  In any event, all other provisions of this
Award Agreement shall be deemed valid and enforceable to the full extent
possible.

 

11.13                 Relocation Outside the United
States.  If the Participant relocates to a country
outside the United States, the Company reserves the right to impose other
requirements on the Participant’s participation in the Plan, on the Option and
on any Shares acquired under the Plan, to the extent the Company determines
necessary or advisable in order to comply with local law or facilitate the
administration of the Plan, and to require the Participant to sign any
additional agreements or undertakings that may be necessary to accomplish the
foregoing.

 

10ex10_1.htm

Exhibit 10.1

 

Offering

Memorandum

	
Number:
	
___________________

 

	
Subscription Amount:
	
___________________

 

 

SAGE FUND, LIMITED PARTNERSHIP

 

SUBSCRIPTION AGREEMENT

 

 

Sage Fund, Limited Partnership

c/o Steben & Company, Inc.

2099 Gaither Road

Suite 200

Rockville, MD 20850

 

 

 

THE OFFERING OF THESE UNITS OF LIMITED PARTNERSHIP INTEREST (“UNITS”) IN SAGE FUND, LIMITED PARTNERSHIP, A MARYLAND LIMITED PARTNERSHIP (“THE PARTNERSHIP”), HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (“THE ACT”) OR CERTAIN STATE SECURITIES LAWS AND CANNOT BE RESOLD UNLESS THEY ARE
SUBSEQUENTLY REGISTERED UNDER THAT ACT AND SUCH LAWS, OR UNLESS AN EXEMPTION IS AVAILABLE. THE OFFERING IS DIRECTED TO THOSE INVESTORS CAPABLE OF EVALUATING THE RISKS AND MERITS OF AN INVESTMENT IN THE PARTNERSHIP (OR WHO HAVE BEEN ADVISED ACCORDINGLY BY AN INDEPENDENT PURCHASER REPRESENTATIVE) AND CAN BEAR THE ECONOMIC RISK OF THE PROPOSED INVESTMENT.  NO ONE SHOULD INVEST IN THE UNITS WHO IS NOT PREPARED TO LOSE A SUBSTANTIAL PORTION OF THE INVESTMENT.

 

If and when accepted by the General Partner, this Subscription Agreement (“Agreement”) shall constitute a binding subscription for units in Sage Fund, Limited Partnership (the “Fund”). Each part of this Agreement must be completed by the Subscriber and by execution thereof Subscriber acknowledges that the General
Partner, the Fund, and any participating broker-dealers are relying upon the accuracy and completeness hereof in complying with their respective obligations under applicable securities laws.

 

THIS ORIGINAL SUBSCRIPTION AGREEMENT MUST BE SUBMITTED IN ITS ENTIRETY

June 1, 2008

  

 

  

 

	
1.
	
Subscription Amount

 

The undersigned Subscriber hereby subscribes for $_____________ of units ($10,000 minimum initial investment, unless the General Partner elects to accept lesser amounts; $2,500 or more for additional investments) upon the terms and conditions specified herein and in the Private Offering Memorandum, as amended (“Memorandum”)
and the Limited Partnership Agreement (Attachment A to the Memorandum), which are incorporated herein by reference. The Subscriber hereby tenders a check (which must be payable to Sage Fund, Limited Partnership) in full payment of the Subscriber’s subscription. Payments made by check or wire must be received AT LEAST FIVE BUSINESS DAYS prior to the last business day of the month, and personal checks must be received AT LEAST SIX BUSINESS DAYS prior to the
last business day of the month. If payment is being made by wire transfer, please see page 9 for wire instructions.

 

 

	
2.
	
Acceptance of Subscriptions

 

It is understood that this subscription is subject to acceptance by the General Partner.  In the event that the Subscriber’s subscription is not accepted, the Subscriber’s subscription payment shall be returned promptly to the Subscriber, and this Agreement shall be terminated for all purposes.  Subscription
funds received and accepted by the Fund will be held in a separate bank account and will be released to the Fund for trading at a closing each month.

 

Confirmation of acceptance will be sent to the Subscriber.

 

 

	
3.
	
Representations and Warranties of the Subscriber

 

	
  
	
(a)
	
Prior to the date of this Agreement, the Subscriber has received and the Subscriber or the Subscriber’s designated representative has read a copy of the Memorandum, including the Appendices thereto. The undersigned is legally competent, and, if executing this Subscription Agreement on behalf of an entity, is duly authorized, to execute this Subscription Agreement.

 

	
  
	
(b)
	
Prior to the date of this Agreement, the Subscriber has received and the Subscriber or the Subscriber’s designated representative has read the Risk Disclosure Statements included in the Memorandum.

 

	
  
	
(c)
	
The Subscriber acknowledges that the General Partner, the Fund and any participating broker-dealers are relying upon the Subscriber’s representations, the Purchaser Suitability Questionnaire, and upon the information and representations concerning the Subscriber in this Agreement. The Subscriber affirms that all such information is accurate and complete and may be relied upon (i) in determining whether the
Subscriber is qualified to participate in this offering, (ii) for purposes of determining the availability of an exemption from registration for the offer and sale of the units, and (iii) as a defense in any action relating to the Fund or the offering of units.

 

(Optional) The Subscriber hereby authorizes the General Partner to contact his or her accountant, ____________________ at _________________________, (_____) _________ and hereby authorizes his or her accountant to verify the information and representations contained in this Agreement.

 

	
  
	
(d)
	
The Subscriber (and/or the duly appointed representatives) has had the opportunity to ask questions of, and receive answers concerning the terms and conditions of the offering, and to obtain information necessary to verify the accuracy of the information provided. All other information desired in connection with this offering has been obtained. The Subscriber has relied only upon such information in determining to
subscribe for units.

 

	
  
	
(e)
	
The Subscriber is purchasing the units for investment, for the Subscriber’s own account, for no other person, and not with a view to distribution thereof.  The Subscriber understands the effect of the limitations on disposition of the units, including the Subscriber’s agreement herein that the units will not be resold without registration under the Securities Act of 1933 (the “1933 Act”)
or an exemption therefrom.  The Subscriber consents to implementation of such restrictions on transfer.  The Fund will not, and is not obligated to register the units on the Subscriber’s behalf.

 

 

	
June 1, 2008
	
Sage Fund, L.P.

  

2

  

 

	
  
	
(f)
	
The Subscriber understands that an investment in the Fund involves a high degree of risk. The Subscriber represents that under the Subscriber’s present and reasonably foreseeable circumstances, the Subscriber can for an indefinite period of time bear the economic risk of investment in the units and can afford to sustain a complete loss with respect to the purchase of such units.

 

	
  
	
(g)
	
If the Subscriber is a trust, partnership, estate, association or other unincorporated organization, the Subscriber represents that it has the authority to make this investment and that its governing instruments or Bylaws allow such investment. If a corporation, the Subscriber represents that its governing instruments permit, and it is duly qualified to make this investment, and that execution of this Agreement has
been duly authorized.  If the Subscriber is not an individual, the Subscriber represents that the Subscriber was not organized for the specific purpose of acquiring the units offered in the aforementioned offering.

 

	
  
	
(h)
	
The Subscriber indemnifies and holds harmless the General Partner, the Fund and any participating broker-dealers in this offering, any person controlling one or more of these persons, and anyone acting on their behalf, with respect to the offer and/or sale of units to the Subscriber, against all liability, costs and expenses arising out of or resulting from any misrepresentation, breach of warranty, or breach of
any covenant by the Subscriber contained herein with respect to any offer, sale, distribution or other disposition of the units or any solicitation of any offer to buy, purchase or otherwise acquire the units subscribed for by the Subscriber hereunder. This Agreement, its provisions and the representations and warranties contained herein shall be binding upon the heirs, legal representatives, successors and assigns of the Subscriber.

 

	
  
	
(i)
	
The tables in the Memorandum (See “Performance History of the Fund” and “Additional Performance Information”) reflecting past performance of the Fund should be read only in connection with the notes to such tables, and should not be interpreted to mean that the Fund will have similar results or will realize any profits whatsoever. The Subscriber understands that the General Partner receives
substantial management fees from the Partnership and the Subscriber consents to payment of such fees.

 

	
  
	
(j)
	
The Subscriber does hereby irrevocably constitute and appoint the General Partner, and its successors and assigns, as the Subscriber’s true and lawful Attorney-in-Fact, with full power of substitution, in the Subscriber’s name, place and stead, to: (i) file, prosecute, defend, settle or compromise litigation, claims or arbitrations on behalf of the Fund; (ii) make, execute, sign, acknowledge, swear to,
deliver, record and file any documents or instruments, which may be considered necessary or desirable by the General Partner to carry out fully the provisions of the Agreement of Limited Partnership; (iii) to execute one or more further Subscription Agreements on its behalf between the Fund, the General Partner and any person being admitted by the General Partner to the Fund as a Limited Partner (or such other parties as may be appropriate) in such form and on such terms and conditions as the General Partner
or other person appointed hereby considers in its, his or her absolute discretion necessary or appropriate, including reference to the Agreement of Limited Partnership and the novation thereof and agreeing and covenanting with such person on behalf of the Subscriber that the Subscriber will from the effective date of such Subscription Agreement or Agreements comply with and observe the terms of the Agreement of Limited Partnership, including, without limitation, those (if any) necessary or desirable to effect
the Subscriber’s admission as a Limited Partner; and (iv) to perform all other acts contemplated by the Agreement of Limited Partnership or as are necessary or convenient to the operation of the Fund. This Power of Attorney shall be deemed to be coupled with an interest and shall be irrevocable and survive and not be affected by the Subscriber’s subsequent death, incapacity, disability, insolvency or dissolution or any delivery by the Subscriber of an assignment of the whole or any portion of the
Subscriber’s units.

 

	
  
	
(k)
	
By execution of this Agreement, the Subscriber certifies under penalties of perjury that (i) the number shown in this Agreement as the Subscriber’s Social Security or Taxpayer Identification Number is correct, and (ii) that the Subscriber is not subject to backup withholding either because the Subscriber has not been notified by the IRS that the Subscriber is subject to backup withholding as a result of a failure
to report all interest or dividends, or because the IRS has notified the Subscriber that the Subscriber is no longer subject to backup withholding. The Subscriber agrees to strike out the language in (ii) above if the Subscriber is unable to make this certification.

 

 

	
June 1, 2008
	
Sage Fund, L.P.

  

3

  

 

	
4.
	
Acceptance of Agreement of Limited Partnership

 

The Subscriber agrees that as of the date of the acceptance of the Subscriber’s subscription funds by the Fund, the Subscriber shall become a Limited Partner, and the Subscriber hereby agrees to each and every term of the Agreement of Limited Partnership as if the Subscriber’s signature were subscribed thereto.
By execution of this Subscription Agreement, and the power of attorney set forth herein, the Subscriber agrees that the Subscriber shall be deemed to have executed the Agreement of Limited Partnership.

 

 

	
 5.
	
Purchaser Representative (if applicable)1

 

If the Subscriber is relying upon a Purchaser Representative(s), the Subscriber hereby acknowledges that the Subscriber has had disclosed in writing by the Subscriber’s Purchaser Representative(s) and on behalf of the Partnership any material relationship between the Purchaser Representative(s) or its affiliates and the Partnership,
the General Partner, or their affiliates, now existing or contemplated, or which has existed at any time during the two years preceding the date hereof, as well as any compensation received or to be received as a result of such relationship.  If the Subscriber is using a Purchaser Representative, a Purchaser Representative Questionnaire (a copy of which may be obtained from the General Partner upon request) shall be completed and returned to the General Partner with this Subscription Agreement, or informational
material providing a reasonable substitute containing similar information shall have been made available to the Subscriber.

 

 

	
6.
	
Subscription Irrevocable

 

The Subscriber understands that this subscription, once made, is irrevocable by the Subscriber, and that the General Partner will advise the Subscriber as soon as practicable whether this Subscription Agreement, together with all or a portion of the subscription, has been accepted or rejected.  Any subscriptions may be rejected
in whole or in part by the General Partner in its sole and absolute discretion.  If this subscription is rejected, the Partnership shall as soon as practicable return any funds transferred by the Subscriber (without interest) along with this Subscription Agreement and any other documents delivered by the Subscriber.  Subscription funds received and accepted by the Partnership will be deposited into the Partnership’s bank account and will be transferred to the Partnership’s trading
accounts on or after a closing date each month.

 

 

	
7.
	
Payments

 

The Subscriber understands that checks sent to the Subscriber’s registered address set forth under “Registration Information” will constitute payment to the Subscriber and relieve the Partnership of any further obligation to the Subscriber with respect to the amounts so paid and the Units thereby redeemed, and the
Subscriber releases the Partnership from any further obligation with respect thereto.  The Subscriber understands that the Partnership may impose such procedures as it deems appropriate before it will accept any change to the registered address.

 

 

	
8.
	
Compliance with Laws

 

If an Entity, the Subscriber and each of its relevant principals and control persons has complied and will continue to comply in all material respects with all laws, rules and regulations having application to its business, properties, and assets (including, if appropriate, the Commodity Exchange Act, as amended (“CEA”),
the Commodity Futures Trading Commission (“CFTC”) Regulations, the National Futures Association (“NFA”) Rules, United States and non-United States securities laws, and state securities laws), and there are no actions, suits, proceedings, or investigations pending or, to the knowledge of the Subscriber, threatened against the Subscriber or any of its principals or affiliates,
at law or in equity or before any governmental department, commission, board, bureau, agency, or instrumentality, or any self-regulatory organization, or any securities or commodity exchange, in which an adverse decision could materially and adversely affect the Subscriber’s ability to conduct its business or to comply with, and perform its obligations under, this Subscription Agreement.  In that regard, if necessary under the CEA or CFTC Regulations, the Subscriber is registered as a commodity
pool operator with the CFTC and is a member of the NFA, and such registration and membership, if required, have not expired or been revoked, suspended, terminated, or not renewed, or limited or qualified in any respect.

 

__________________________________

1Your Account Executive or Broker is not a Purchaser’s Representative.  If applicable, a separate Purchaser Representative Questionnaire must by completed for each Purchasers Representative or (a) reasonable substitute document(s) containing similar information must be provided.

 

 

	
June 1, 2008
	
Sage Fund, L.P.

  

4

  

 

	
9.
	
Limitations on Transfers

 

The Subscriber understands and agrees that the Units may not be offered for sale, sold, pledged, hypothecated, transferred, assigned, or otherwise disposed of (each a “Transfer”), and will not attempt to Transfer its Units without the prior written consent of the
General Partner, which consent may be granted or withheld in the sole and absolute discretion of the General Partner.  The Subscriber further represents and warrants that it does not have any intention or obligation to Transfer all or a portion of its Units.  The Subscriber understands that the Units may not be resold unless subsequently registered pursuant to the 1933 Act or unless an exemption from such registration is available, and that the Subscriber does not have the right to require
such registration.  The Subscriber further understands that Rule 144 under the 1933 Act will not be available to permit resales of Units and that there is no and will be no public market for the Units.  The Subscriber has the ability and willingness to accept (i) the illiquid nature of an investment in the Partnership and (ii) the risk of loss of all or a substantial portion of its investment in the Partnership.

 

	
10.
	
Representations

 

The information provided under Registration Information for the Units and the Accredited Investor Certification and each required Questionnaire is true and correct and such documentation is hereby incorporated into and made a part of this Subscription Agreement.

 

 

	
11.
	
Swap Counterparty Representation

 

Unless otherwise approved in writing by the General Partner, the Subscriber represents and warrants that the Subscriber has not entered and will not enter into a swap, structured note or other derivative instrument with a third party, the return from which is based in whole or in part on the return of the Partnership.

 

 

	
12.
	
Insurance Representation

 

Unless otherwise approved in writing by the General Partner, the Subscriber represents and warrants that the Subscriber has not entered and will not enter into a variable annuity or insurance policy with a third party, the value of which is based in whole or in part on the return of the Partnership.

 

 

	
13.
	
Disclosure Information

 

The Subscriber understands that the Partnership may require other documentation in addition to this Subscription Agreement prior to deciding whether to accept this subscription, and the Subscriber agrees to provide it, if reasonably requested.  The Subscriber understands that the Partnership may provide the General Partner
with information with respect to the Partnership.  Such information may be disclosed by the Partnership and the General Partner to such persons and authorities for the purpose of satisfying their inspection, fiduciary, reporting, filing or other obligations to the Partnership or by the Partnership and the General Partner, if requested to disclose such information by regulatory officials having jurisdiction, or required by judicial process or government action.  Without limiting the generality
of the foregoing, the Subscriber acknowledges and agrees that the Partnership or the General Partner may voluntarily release confidential information about the Subscriber and, if applicable, any person on behalf of whom or for which the Subscriber is investing (including, without limitation, any person for whom or for which the Subscriber is (i) acting as trustee, agent, representative or disclosed nominee, or (ii) an entity investing on behalf of underlying investors (including a fund-of-funds)) (the persons,
entities and underlying investors referred to in (i) and (ii) being referred to collectively as the “Beneficial Owners”),  to regulatory or law enforcement authorities under anti-money laundering laws, rules or regulations applicable to any one or all of them if any of the foregoing determines to do so in their sole discretion.

 

 

	
June 1, 2008
	
Sage Fund, L.P.

  

5

  

 

	
14.
	
Taxpayer Certification

 

	
  
	
(a)
	
U.S. Citizens and Residents.  Complete the attached Form W-9.

 

	
  
	
(b)
	
Non-U.S. Citizens and Residents.  Provide the appropriate IRS Form W-8 (i.e., W-8BEN, W-8ECI or W-8IMY).

 

	
  
	
(c)
	
Withholding Obligations.  Subscribers who are (i) not U.S. citizens or residents, and (ii) Subscribers who are U.S. citizens or residents and who fail to provide their correct Social Security or taxpayer identification numbers, could be subject to United States withholding tax on a portion of their distributive shares of the Partnership’s
income.

 

 

	
15.
	
Liability

 

The Subscriber agrees that neither the Partnership, the General Partner nor any participating broker-dealers in this offering, nor its or their respective affiliates, officers, directors, limited partners or employees (collectively, the “Partnership Parties”), shall
incur any liability (i) in respect of any action taken upon any information provided to the Partnership by the Subscriber or for relying on any notice, consent, request, instructions or other instrument believed, in good faith, to be genuine or to be signed by properly authorized persons on behalf of the Subscriber, including any document transmitted by facsimile, or (ii) for adhering to applicable anti-money laundering obligations whether now or hereinafter in effect.

 

 

	
16.
	
Indemnification

 

The Subscriber agrees that it will indemnify and hold harmless the Partnership Parties from and against any and all direct and consequential loss, damage, liability, cost or expense (including reasonable attorneys’ and accountants’ fees and disbursements, whether incurred in an action between the parties hereto or otherwise)
(collectively, “Losses”) which the Partnership Parties, or any one of them, may incur by reason of or in connection with this Subscription Agreement, including any misrepresentation made by the Subscriber or any of the Subscribers’ agents, any breach of any declaration, representation or warranty of the Subscriber, the failure by the Subscriber to fulfill any covenants or agreements under this Subscription Agreement, its or their reliance
on facsimile or other instructions, or the assertion of the Subscriber’s lack of proper authorization from the Beneficial Owner(s) to execute and perform the obligations under this Subscription Agreement.  The Subscriber also agrees that it will indemnify and hold harmless the Partnership Parties from and against any and all direct and consequential Losses which the Partnership Parties, or any one of them, may incur by reason of, or in connection, with the failure by the Subscriber to comply with
any applicable law, rule or regulation having application to the Partnership Parties.

 

 

	
17.
	
Consent to Jurisdiction

 

The parties hereto agree that any action or proceeding arising directly, indirectly, or otherwise in connection with, out of, related to, or from this Agreement, any breach hereof, or any transaction covered hereby, shall be resolved, whether by arbitration or otherwise, within the County, City, and State of New York.  Accordingly,
the parties consent and submit to the jurisdiction of the federal and state courts and any applicable arbitral body located within the County, City, and State of New York.  The parties further agree that any such action or proceeding brought by either party to enforce any right, assert any claim, or obtain any relief whatsoever in connection with this Agreement shall be brought by such party exclusively in the federal or state courts, or if appropriate before any applicable arbitral body, located within
the County, City, and State of New York.

 

 

	
June 1, 2008
	
Sage Fund, L.P.

 

  

6

  

 

	
18.
	
ERISA Accounts

 

The following provision is applicable to any Subscriber acting on behalf of an “employee benefit plan” as defined in and subject to the Employee Retirement Income Security Action of 1974, as amended (“ERISA”), or a “plan” as defined in and subject to Section 4975 of the Internal Revenue Code of
1986, as amended (the “Code”) (each, a “Plan”), which would include, among other types of arrangements, IRAs, Keogh plans, corporate pension and profit sharing plans, “simplified employee pension plans” and medical benefit plans.  Plan fiduciaries or trustees must carefully confirm that an investment in the Fund is authorized under the operative documents of the
Plan.  Many Plans may not in fact be authorized to invest in a highly leveraged, illiquid and speculative investment such as the Fund.  If the undersigned is acting on behalf of a Plan, the individual signing this Subscription Agreement on behalf of the Subscriber hereby further represents and warrants, as the agent or the fiduciary of the Plan responsible for purchasing Units (the “Investment Fiduciary”), that:  (a)
the Investment Fiduciary has considered an investment in the Fund in light of the risks relating thereto; (b) the Investment Fiduciary has determined that, in view of such considerations, an investment in the Fund is consistent with the Investment Fiduciary’s responsibilities under ERISA or other applicable law; (c) the Plan’s investment in the Fund does not violate and is not otherwise inconsistent with the terms of any legal document constituting the Plan or any trust agreement thereunder; (d) the
Plan’s investment in the Fund has been duly authorized and approved by all necessary parties; (e) none of the General Partner, Newedge Financial Inc., Newedge Group, Bank of America, UBS Financial Services, Inc., any Trading Advisor utilized by the Fund, any selling agent retained to sell units, any of their respective affiliates or any of their respective agents or employees; (i) has investment discretion with respect to the investment of assets of the Plan used to purchase the units; (ii) has authority
or responsibility to or regularly gives investment advice with respect to the assets of the Plan used to purchase the units for a fee and pursuant to an agreement or understanding that such advice will serve as a primary basis for investment decision with respect to the Plan and that such advice will be based on the particular investment needs of the Plan; or (iii) is an employer maintaining or contributing to the Plan, unless, after taking into consideration such relationship, the Investment Fiduciary has determined
and hereby represents and warrants that the Plan’s investments in the Fund will not give rise to a non-exempt prohibited transaction under ERISA and the Code; and (f) the Investment Fiduciary (i) is authorized to make, and is responsible for, the decision to invest in the Fund, including the determination that such investment is consistent with the requirements imposed by Section 404 of ERISA (or other applicable law) that plan investments be diversified so as to minimize the risks of large losses; (ii)
is independent of the General Partner, Newedge Financial Inc., Newedge Group, Bank of America, UBS Financial Services, Inc.,, any Trading Advisor utilized by the Fund, each selling agent retained to sell units, and each of their respective affiliates; and (iii) is qualified to make such investment decision; and (g) taking into account the following factors, and all other factors relating to the Fund, the undersigned has concluded that investment in the Fund constitutes an appropriate part of the Plan’s
overall investment program:  (i) there is a significant risk of the loss of a substantial portion or the majority of the Plan’s investment; (ii) an investment in the Fund will be illiquid, except for certain redemption rights; (iii) the Fund will permit the aggregate investments by benefit plan investors to exceed twenty-five percent (25%) of any class of equity interest of the Plan, in which case the assets of the Fund will be for purposes of ERISA and Section 4975 of the Code deemed assets of
the Plans on whose behalf investments in the Fund are made; and (iv) funds invested in the Fund will not be readily available for the payment of employee benefits under the Plan.  The undersigned further represents and warrants that (a) the trustee of the Plan will hold the Plan’s units in trust, unless not required by ERISA; (b) the Investment Fiduciary consents to the payment of fees to the General Partner, any Trading Advisor, Newedge Financial Inc., Newedge Group, Bank of America, UBS Financial
Services, Inc and their agents and has determined that the arrangement for services by, and the fees to be paid to the General Partner, any Trading Advisor, Newedge Financial Inc., Newedge Group, Bank of America, UBS Financial Services, Inc  and their agents are reasonable and the services to be performed by such persons are appropriate and helpful to the Plan, all within the meaning of Section 408(b)(2) of ERISA and Section 4975(d)(2) of the Code; (c) that, to the extent the Plan is subject to ERISA
and for so long as the unitholder maintains an interest in the Fund, it will maintain a qualifying ERISA fiduciary bond that covers the General Partner and the Trading Advisor as a named insured in respect of the Plan’s assets that are invested in the Fund, and (d) the undersigned consents on behalf of the Plan to and authorizes the operation of the Fund as described in the Fund’s Memorandum.  The undersigned will notify the General Partner, in writing, of (a) any termination, substantial
contraction, merger or consolidation of the Plan, or transfer of its assets to any other plan; (b) any amendment to the Plan or any related instrument which materially affects the investments of the Plan or the authority of any fiduciary to authorize Plan investments; and (c) any alteration in the identity of any fiduciary, including the undersigned, who has the authority to approve and monitor Plan investments.  The undersigned will, at the request of the General Partner, furnish the General Partner
with such information as the General Partner may reasonably require to establish that the purchase of the units by the Plan and the transactions to be entered into by the Fund, and the holding of any investment by the Fund, do not violate any provision of ERISA or the Code, including, without limitation, those provisions relating to “prohibited transactions” by “parties in interest” or “disqualified persons” as defined therein.

 

 

	
June 1, 2008
	
Sage Fund, L.P.

  

7

  

 

	
19.
	
Miscellaneous

 

	
  
	
(a)
	
Entire Agreement.  This Agreement and the L.P. Agreement represent the entire agreement of the parties with respect to the subject matter hereof and may not be changed or terminated, except in writing signed by the Subscriber and the General Partner, or in the case of the L.P. Agreement, in accordance with procedures for
amendments as set forth therein.

 

	
  
	
(b)
	
No Waiver.  No waiver by any party of any breach of any term of this Agreement shall be construed as a waiver of any subsequent breach of that term or any other term of the same or of a different nature.

 

	
  
	
(c)
	
Choice of Law.  This Subscription Agreement shall be deemed to have been made under, and shall be governed by, and construed in accordance with, the internal laws of the State of New York (excluding the law thereof which requires the application of or reference to the law of any other jurisdiction).

 

	
  
	
(e)
	
For Georgia Residents Only.  THESE SECURITIES HAVE BEEN ISSUED OR SOLD IN RELIANCE ON PARAGRAPH (13) OF CODE SECTION 10-5-9 OF THE “GEORGIA SECURITIES ACT OF 1973” AND MAY NOT BE SOLD OR TRANSFERRED EXCEPT IN A TRANSACTION WHICH IS EXEMPT UNDER SUCH ACT OR PURSUANT TO AN EFFECTIVE REGISTRATION UNDER SUCH ACT.

 

	
  
	
(f)
	
Arbitration.  By executing this Subscription Agreement, the Subscriber waives its right to seek remedies in court, including any right to a jury trial.  To the fullest extent permitted by law, the Subscriber agrees that in the event of any dispute between the parties arising out of, relating to or in connection with this Agreement
or the Fund, such dispute shall be resolved exclusively by arbitration to be conducted only in the county, city and state of New York in accordance with the rules of JAMS/Endispute (“JAMS”) applying the laws of the State of New York.  Disputes shall not be resolved in any other forum or venue.  The parties agree that such arbitration shall be conducted by a retired judge who is experienced in resolving disputes regarding the securities business, that discovery shall not be permitted
except as required by the rules of JAMS, that the arbitration award shall not include factual findings or conclusions of law, and that no punitive damages shall be awarded.  The parties understand that any party’s right to appeal or to seek modification of any ruling or award of the arbitrator is severely limited.  Any award rendered by the arbitrator shall be final and binding, and judgment may be entered on it in any court of competent jurisdiction in the city of New York and State
of New York or as otherwise provided by law.

 

 

	
  20.
	
Consent to Electronic Delivery of Statements.

 

By opting for electronic statements, subscriber hereby agrees to receive monthly statements, investor communications, and annual Fund audited financial statements via electronic delivery in lieu of paper statements.  Statements will be available through password protected access to the General Partner’s
website at www.steben.com.  Subscribers need to register at the website for access.  Subscribers must provide the General Partner with a valid e-mail address which will be used for website registration and to notify the Subscriber when statements are available.  Subscriber agrees to notify the General Partner, in writing or via e-mail, of any changes to the e-mail address on record.  Electronic
statements can be discontinued at any time, upon written request, received by the General Partner, at which time paper statements will thereafter be mailed to the address of record.  Historical monthly statements, performance summaries and communications will be archived and will be available on the confidential investor website.

 

 

	
June 1, 2008
	
Sage Fund, L.P.

  

8

  

 

SAGE FUND, LIMITED PARTNERSHIP

 

SUBSCRIPTION AGREEMENT

 

CONFIDENTIAL PURCHASER QUESTIONNAIRE

 

INVESTORS MUST ANSWER EACH QUESTION UNLESS DIRECTED TO PROCEED TO A LATER SECTION. INCOMPLETE QUESTIONNAIRES WILL BE RETURNED AND MAY CAUSE DELAYS IN THE INVESTMENT.

 

Units of beneficial interest (the “units”) are being offered in Sage Fund, Limited Partnership (the “Fund”), to accredited investors pursuant to the Fund’s Offering Memorandum.

 

Before you may purchase units, the Fund’s General Partner, Steben & Company, Inc. (the “General Partner”), must be reasonably satisfied that you have such knowledge and experience in financial and business matters that you are capable of evaluating the risks and merits of investing in the Fund. This questionnaire
is designed to enable the General Partner to make that determination.

 

The General Partner will maintain the confidentiality of all information disclosed by you, except as is necessary to provide such information to a regulatory body.

 

BECAUSE THE GENERAL PARTNER WILL RELY ON YOUR ANSWERS IN ORDER TO COMPLY WITH FEDERAL AND STATE LAWS, YOU MUST CAREFULLY ANSWER EACH QUESTION. PURCHASERS CAN BE HELD LIABLE FOR ANY MISSTATEMENT OR OMISSION IN THIS QUESTIONNAIRE.

 

	 	
Form of Ownership (check one)
	  	
Purchaser’s Instructions (complete)

	 	  	  	  
	 	
 ̈ Individual

 ̈ Joint Account

 ̈ IRA (INCL. SEP/SIMPLE)
	 	
Page 10; Part I (page 11); Part III (page 14); Part IV (page 15); Part V (page 15);

	 	  	  	  
	 	
 ̈ Corporation*

 ̈ Partnership*

 ̈ Revocable Trust*

 ̈ Irrevocable Trust*

 ̈ Estate*

 ̈ Pension Plan*

 ̈ Tax-Exempt Organization*
	  	
Page 10; Part II (page 12); Part III (page 14); Part IV (page 15); Part V (page 15);

*APPROPRIATE AUTHORIZATION DOCUMENTS MUST ACCOMPANY SUBSCRIPTION, I.E., TRUSTS, RETIREMENT PLANS, ESTATE, PARTNERSHIP, CORPORATE DOCUMENTS.

 

If purchaser is a trust or partnership, please attach a copy of the trust instrument or partnership agreement or, in lieu of that, an opinion of counsel that the trust or partnership has authority to purchase units of the partnership. If the purchaser is a retirement plan, please include a copy of the plan documents.  If
the purchaser is a corporation, please attach a certified corporate resolution authorizing signature. If the purchaser is an estate, please attach appropriate authorization documents.

 

Amount of Subscription:  $_________________________

 

Make check payable to “Sage Fund, Limited Partnership”. Payments made by check or wire must be received AT LEAST FIVE BUSINESS DAYS prior to the last business day of the month, and personal checks must be received AT LEAST SIX BUSINESS DAYS prior to the last business day
of the month.

 

	
Wire Instructions:
	  	
Mailing Instructions:

	
Bank of America
	  	
Sage Fund, L.P.

	
ABA# 026-009-593
	  	
c/o Steben & Company, Inc.

	
For credit to: Sage Fund, L.P.
	  	
2099 Gaither Road, Suite 200

	
Account# 0044 6770 7298
	  	
Rockville, MD 20850

	
FBO: [Client Name]
	  	  

 

 

	
June 1, 2008
	
Sage Fund, L.P.

 

 

9

 

 

ALL PURCHASERS MUST COMPLETE THE FOLLOWING INFORMATION

 

	  	 	  	 
	
Taxpayer ID Number or Social Security Number:
	 	  	 
	  	 	  	 
	
Home Telephone Number:
	 	  	 
	  	 	  	 
	
Business Telephone Number:
	 	  	 
	  	 	  	 
	
Fax Number:
	 	  	 
	  	 	  	 
	
e-mail address:
	 	  	 
	  	 	  	 
	
Primary Residence/Location (No P.O. Boxes):
	 	  	 
	  	 	  	 
	  	 	  	 
	
Previous Residence/Location (If at Primary Residence/Location for less than five years):
	 	  	 
	  	 	  	 
	  	 	  	 
	  	 	  	 
	
Mailing Address (If different from Primary Residence/Location):
	 	  	 
	  	 	  	 
	 	 	 	 
	  	 	  	 

 

CONSENT TO ELECTRONIC DELIVERY OF STATEMENTS OPTION:

 

	 	
I/we wish to receive monthly account statements, investor communications, and annual Fund audits via electronic delivery

 

 ̈ Yes     ̈No

 

(Please see page 8 Item #20 for information)
	 	
 

e-mail address

(REQUIRED FOR ELECTRONIC STATEMENTS

 

ADDITIONAL INFORMATION FOR IRA ACCOUNTS:

 

(Please note that the General Partner cannot act as Trustee/Custodian for Retirement Accounts)

 

	  	 	  	 
	
Custodian’s Name:
	 	  	 
	  	 	  	 
	
Custodian’s Mailing Address:
	 	  	 
	  	 	  	 
	 	 	 	 
	
Custodian’s Tax ID Number:
	 	  	 
	  	 	  	 
	
Custodian’s Account Number:
	 	  	 
	  	 	  	 
	
Custodian’s Signature and/or Stamp:
	 	  	 
	  	 	  	 
	
Type of IRA account:
	 	
 ̈ Traditional     ̈ Rollover     ̈Roth     ̈SEP     ̈SIMPLE

 ̈Other ____________
	 
	  	 	  	 

 

 

	
June 1, 2008
	
Sage Fund, L.P.

 

  

10

  

PART I. TO BE COMPLETED BY PURCHASERS WHO ARE INDIVIDUALS

 

	 	Please print or type.  Answer every question. Insert “not applicable” or “N/A” if a question does not apply to you.  Attach separate sheets if the space given for any answer is insufficient. 
	 	 	 	 	 
	 	 	 	 	 
	
1.
	
Subscriber’s Name:
	  	  	  
	 	  	  	
 ̈ Mr.    ̈Mrs.    ̈Ms.    ̈Miss    ̈Dr.
	  

 

	 	
Joint Subscriber’s Name (if applicable):
	  	  	  
	 	  	  	
 ̈ Mr.    ̈Mrs.    ̈Ms.    ̈Miss    ̈Dr.
	  

 

	 	
If a joint subscription, please indicate:
	
 ̈
	
Tenants in Common

	 	  	
 ̈
	
Joint Tenancy with Right of Survivorship

	 	  	
 ̈
	
Tenants in Entirety

	 	  	
 ̈
	
Community Property

	 	
Are Joint Subscribers husband and wife?
	  	
         ̈ Yes     ̈ No

 

	
2.
	
Name of Subscriber’s Employer or Business:
	  	  	  
	 	 	 	 	 

	 	
Nature of Business:
	  	  	  

	 	
Position/Title:
	  	  	  	
Length of Time in Position:
	  	  	  

	 	
Business Address:
	  	  	  

 

 

	3.	Do you, and any joint Subscriber(s), intend to purchase the units solely for your own account?

 

 ̈  Yes           ̈  No

 

	 	If not, please indicate who else would have a direct or indirect interest in the units to be purchased and describe such interest.

 

 

	 4.	Are you:

 

	 	
(a)
	
An individual whose individual income exceeds $200,000 (or joint income with spouse exceeds $300,000) in each of the last two years and who reasonably expects his individual income to be in excess of $200,000 in the current year?

 

 ̈  Yes           ̈  No

 

	 	
(b)
	An individual whose individual net worth, or joint net worth with your spouse, exceeds $1,000,000 as of the date hereof (net worth includes home and personal property)?

 

 ̈  Yes            ̈  No

 

	 	You must be able to answer “Yes” to one of the above questions in order to subscribe to the Fund.

 

	
5.
	
List any college or graduate degrees:
	  	  	  

 

	 	Describe any previous employment or experience in financial and business matters generally or the futures markets specifically:	 
	 	 	 
	 	 	 

 

 

	
June 1, 2008
	
Sage Fund, L.P.

  

11

  

 

PART I.  TO BE COMPLETED BY PURCHASERS WHO ARE INDIVIDUALS – (Continued)

 

	
6.
	
Investment Experience:

 

Describe your previous investment experience:

 

	
  
	
(a)
	
Frequency of your investments in commodities:

	
 ̈  Often
	  	
 ̈  Occasionally
	  	
 ̈  Seldom
	 	
 ̈  Never

(b)           Frequency of your investment in marketable securities:

	
 ̈  Often
	  	
 ̈  Occasionally
	  	
 ̈  Seldom
	 	
 ̈  Never

 

(c)           Frequency of your investments in securities that are not readily marketable:

	
 ̈  Often
	  	
 ̈  Occasionally
	  	
 ̈  Seldom
	 	
 ̈  Never

 

	
  
	
(d)
	
Indicate the types of investments in which you have participated:

	
  
	
 ̈
	
Limited partnerships investing in commodities and/or trading futures.

	
  
	
 ̈
	
Limited partnerships investing in other investments.

	
  
	
 ̈
	
Private placements of securities sold in reliance upon the non-public offering exemption under the Act.

	
  
	
 ̈
	
Other investments.

	
7.
	
What is the:

 

	
(a)
	  	
Source of funds for this investment:
	  	  

 

	
(b)
	  	
Reason for Investment:
	  	  

 

PART II.  TO BE COMPLETED BY PURCHASERS WHICH ARE ENTITIES

 

	
1.
	
Name of Entity:
	  	  
	                	  	  	  

 

	
2.             
	
Nature of Business:
	  	  

 

	
State of incorporation or organization:
	  	  

 

	
3.
	
Are you:

 

	
  
	
 ̈
	
A revocable grantor trust whose grantor is a person that is:

 

	
  
	
 ̈            (a)
	
A natural person whose individual net worth, or joint net worth with spouse, exceeds $1 million at the time of purchase. (In this instance, the term “net worth” means the excess of assets at fair market value, including home and personal property, above total liabilities, including mortgages and income taxes on unrealized appreciation of assets.)

 

	
  
	
 ̈            (b)
	
A natural person who has individual income of more than $200,000 in each of the two most recent years, or joint income with that person’s spouse of more than $300,000, and reasonably expects to reach the same income level in the current year.

 

	
  
	
 ̈
	
A trust (other than an IRA or a revocable grantor trust) having total assets of more than $5 million, not formed for the specific purpose of acquiring the units offered hereby, whose purchase is directed by a person who has such knowledge and experience in financial and business matters that he is capable of evaluating the merits and risks of an investment in the units.

 

 

	
June 1, 2008
	
Sage Fund, L.P.

 

  

12

  

 

PART II.  TO BE COMPLETED BY PURCHASERS WHICH ARE ENTITIES – (Continued)

 

	
  
	
 ̈
	
A bank (as defined in Section 3(a)(2) of the Securities Act), a savings and loan association, or other institution (as defined in Section 3(a)(5)(A) of the Securities Act), acting in an individual or fiduciary capacity, including as a credit union or other institution whose account is insured by the National Credit Union Administration.

 

	
  
	
 ̈
	
A broker and/or dealer registered under Section 15 of the Securities Exchange Act of 1934, as amended.

 

	
  
	
 ̈
	
A business development company (as defined in Section 2(a)(48) of the Investment Company Act of 1940).

 

	
  
	
 ̈
	
A private business development company (as defined in Section 202(a)(22) of the Investment Advisers Act of 1940).

 

	
  
	
 ̈
	
A corporation, Massachusetts or similar business trust, or partnership, not formed for the specific purpose of acquiring the units offered hereby, with total assets of more than $5 million.

 

	
  
	
 ̈
	
One of the following:

 

	
  
	
 ̈            (a)
	
An employee benefit plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, which has total assets of more than $5 million.

 

	
  
	
 ̈            (b)
	
An employee benefit plan within the meaning of the Employee Retirement Income Security Action of 1974 (“ERISA”) whose investment decision is made by a plan fiduciary (as defined in Section 3(21) of ERISA), which is a bank, a savings and loan association, an insurance company, or a registered investment adviser.

 

	
  
	
 ̈            (c)
	
An employee benefit plan within the meaning of ERISA, which has total assets of more than $5 million.

 

	
  
	
 ̈
	
A self-directed employee benefit plan within the meaning of ERISA, whose investment decisions are made solely by a person that is:

 

	
  
	
 ̈            (a)
	
A natural person whose individual net worth, or joint net worth with spouse, exceeds $1 million at the time of purchase.

 

	
  
	
 ̈            (b)
	
A natural person whose individual income of more than $200,000 in each of the two most recent year, or joint income of more than $300,000 when income of that person’s spouse is taken into account, and reasonably expects to reach the same income level in the current year.

 

	
  
	
 ̈
	
A one-member retirement plan, whose sole participant is:

 

	
  
	
 ̈            (a)
	
A natural person whose individual net worth, or joint net worth with spouse, exceeds $1 million at the time of purchase.

 

	
  
	
 ̈            (b)
	
A natural person whose individual income of more than $200,000 in each of the two most recent year, or joint income of more than $300,000 when income of that person’s spouse is taken into account, and reasonably expects to reach the same income level in the current year.

 

 

	
June 1, 2008
	
Sage Fund, L.P.

 

  

13

  

 

	
  
	
 ̈
	
An insurance company (as defined in Section 2(13) of the Securities Act).

 

	
  
	
 ̈
	
An investment company registered under the Investment Company Act of 1940.

 

	
  
	
 ̈
	
A tax-exempt organization described in Section 501(c) of the Code with total assets of more than $5 million.

 

	
  
	
 ̈
	
A Small Business Investment Company (licensed by the United States Small Business Administration under Section 301(c) or (d) of the Small Business Investment Company Act of 1958).

 

	
  
	
 ̈
	
Another entity ALL of whose equity owners are accredited investors meeting one of the foregoing categories.* Type of entity:__________________________________

 

*If you check this box, please duplicate this questionnaire and have each equity owner complete and submit such questionnaire with the entity’s subscription documents. Please note that an irrevocable trust does not qualify as an accredited investor under this definition.

 

 

PART III.  REPRESENTATIONS (All Subscribers must initial lines 1 through 6)

 

I acknowledge that the General Partner will be relying upon the information I have furnished in this Questionnaire in determining, among other things, whether there are reasonable grounds to believe that I qualify as an Accredited Investor as defined under Regulation D (“Regulation D”) of the Securities Act
of 1933 (the “1933 Act”), as amended or otherwise qualify as a suitable investor under federal and state securities laws. To the best of my information and belief, the information I have supplied is complete and correct, and I represent and warrant to the General Partner as follows:

 

	
__________ (initial) (1)
	  	
The answers to the above questions are complete and correct and may be relied upon by the General Partner in determining whether this offering in which I propose to participate will be exempt from registration under applicable securities laws.

	 	 	 
	

__________ (initial) (2)

	  	
Prior to receiving notice of the General Partner’s acceptance of my subscription, I will notify the General Partner immediately of any material change in any information I have furnished in this Questionnaire.

	 	 	 
	
__________ (initial) (3)
	  	
I personally (or with my Purchaser Representative, if any) have sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of an investment in the Fund.

	 	 	 
	

__________ (initial) (4)

	  	
I am able to bear the economic risk and lack of liquidity of an investment in the Fund, and at the present time could afford a complete loss of such investment.

	 	 	 
	
__________ (initial) (5)
	  	
After receiving notice of the General Partner’s acceptance of my subscription, I will immediately advise the General Partner in writing of any material change in the information I have supplied in this Questionnaire, and I will provide at any time any additional information the General Partner may reasonably request concerning the
information I have supplied in this Questionnaire.

	 	 	 
	
__________ (initial) (6)
	  	
I have received a copy of the Offering Memorandum of the Sage Fund, Limited Partnership dated June 1, 2008, including the Risk Disclosure Statement.

 

 

14

 

 

	 	 
	  	
PART IV. TO BE COMPLETED BY ALL PURCHASERS

	  	  	  	  	  
	  	
If an entity, please duplicate PART IV and complete one for each authorized signer:
	  
	  	  	  	  	  	  	  	  
	  	
Date of Birth:
	  	  	  	  	  	  
	  	  	  	  	  	  	  	  
	  	
Nationality/Citizenship:
	  	  	  	  	  	  
	  	  	  	  	  	  	  	  
	  	
Driver’s License #
	  	 	  	  	  	
OR
	  
	  	  	  	  	  	  	  	  
	  	Passport # (if not USA state country of issuance):	
 
	  	  	  	  
	  	  	  	  	  	  	  	  

 

	 	 	 
	  	
PART V. PURCHASER SIGNATURES
	  
	  	  	  	  	  
	
Purchaser hereby acknowledges that all of the foregoing factual information is true and accurate in all material respects and does not omit any facts necessary to prevent such information (taken as a whole) from being misleading in any material respect.

	  	  	  	  	  
	  	  	  	  	  
	  	
Print Name (1)
	  	
Print Name (2)
	  
	  	  	  	  	  
	  	
Signature
	  	
Signature
	  
	  	  	  	  	  
	  	
Date
	  	
Date
	  
	  	  	  	  	  
	  	
Title (if applicable)
	  	
Title (if applicable)
	  
	 	 	 	 	 
	 	 	 	 	 
	  	  	  	  	  
	  	
Print Name (3)
	  	
Print Name (4)
	  
	  	  	  	  	  
	  	
Signature
	  	
Signature
	  
	  	  	  	  	  
	  	
Date
	  	
Date
	  
	  	  	  	  	  
	  	
Title (if applicable)
	  	
Title (if applicable)
	  
	  	  	  	  	  

 

 

	
June 1, 2008
	
Sage Fund, L.P.

  

15

  

 

THIS PAGE TO BE COMPLETED BY FINANCIAL ADVISORS

 

 

	 	 	 	 	 
	  	
PART VI.
	  	
TO BE COMPLETED BY THE PURCHASER REPRESENTATIVE (NOT THE SELLING AGENT/BROKER)
	  
	  	  	  	  	  	  
	  	
Name:
	  	  	  	  
	  	  	  	  	  	  
	  	
Profession:
	  	  	  	  
	  	  	  	  	  	  
	  	
Address:
	  	  	  	  
	  	  	  	  	  	  
	  	  	  	  	  	  
	  	
Telephone:
	  	
(           )
	  	  
	  	  	  	  	  	  
	  	
SIGNATURE:
	  	  	  	  
	  	  	  	  	  	  

 

	  	
PART VII. TO BE COMPLETED BY THE SELLING AGENT / BROKER

	  	  
	
THIS SECTION MUST BE COMPLETED BEFORE THE SUBSCRIPTION CAN BE PROCESSED

 

I hereby represent that to the best of my knowledge, an investment in Sage Fund, L.P., is a suitable investment for this Subscriber based upon a suitability determination performed prior to this recommendation.  In addition, I have taken reasonable steps to verify the Subscriber’s identity in accordance with FINRA’s Customer
Identification Program and the U.S. Patriot Act.

 

Also, I understand that the Fund is a “Private Offering,” and as such, the Fund may only be offered to accredited
investors with whom I have a pre-existing relationship.

	  	  	  	  	  	  	  	  	  
	  	
Name:
	  	  	  	
Account Executive #:
	  	  	  
	  	  	  	  	  	  	  	  	  
	  	
Broker/Dealer:
	  	  	  	
e-mail Address:
	  	  	  
	  	  	  	  	  	  	  	  	  
	  	
Phone:
	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  
	  	
Address:
	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  
	  	
Account Executive Signature
	  	

Branch Manager /OSJ Signature (if required)

	  
	  	  	  	  	  	  	  

 

	
June 1, 2008
	
Sage Fund, L.P.

 

 

16

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