Document:

Base Employment Agreement with Matteo Pellegrini

 Exhibit 10.4 
 

 
 PHILIP MORRIS 
 MANAGEMENT SERVICES S.A. 
  

					
	TELEPHONE: (41-21) 618 41 84	  	 	  	AVENUE DE COUR 107
	CABLE: SWIPOLD LAUSANNE	  		  	CASE POSTALE
	TELEX: 45 45 64	  		  	1001 LAUSANNE
	TELEFAX: (41-21) 618 46 18	  		  	SWITZERLAND

  

					
	 CONFIDENTIAL
	  	 	  	  

			
	Mr Matteo Pellegrini	  	        Lausanne, March 24, 2003	  	
	C/o Philip Morris Italy S.p.A.	  		  	
	Via Salandra 18	  		  	
	00187 Roma	  		  	
	Italy	  		  	

 Dear Mr Pellegrini, 
 This letter confirms the details of your secondment, effective April 1, 2003, to our affiliate, Philip Morris Asia Ltd. (“the Affiliate”), in the capacity of President Asia Pacific. This
secondment is foreseen for a period of approximately two to three but no commitment can be made as to its exact duration. The terms and conditions contained herein supplement your contract of employment with Philip Morris Management Services S.A.
(“the Company”) dated March 24, 2003 and should be read in conjunction with it. 
 During this secondment, you will continue to
be employed by the Company, but you will be based in Hong Kong, and will report to and work under the supervision of the President & CEO who shall determine the specific scope of your work and responsibilities. Throughout the secondment you
are expressly not authorized to bind the Company in any way. 
 Your compensation and other benefits and terms of employment during your
secondment to the Affiliate will continue to be determined in accordance with your contract with the Company, except as follows: 
  

	1.	During the period of this secondment, your vacation entitlement will be 25 days per calendar year, in accordance with the PMI International Assignment Policy.

 At the end of your secondment to the Affiliate, your compensation, benefits and other terms of employment will be adjusted to
conform to the corresponding schemes and policies applicable to your next assignment. 

			
	 Mr Matteo Pellegrini
	  	Page No. 2

  
  

Your employment by the Company, and the terms of your secondment to the Affiliate, shall be governed by substantive and procedural Swiss law, without
giving effect to the principles thereof relating to conflicts of laws. 
 Please indicate your acceptance of the foregoing by countersigning and
returning the enclosed copy of this letter to the attention of Jessica Wallentin, International Assignments, Lausanne, Switzerland. 
 Yours
sincerely, 
 PHILIP MORRIS MANAGEMENT SERVICES S.A. 
  

			
	 By
	 	 

		 	Alistair Davison
		 	Director

  

							
	 By
	  	 

	 		 	Acknowledged and agreed
		  	Gonzague Dufour	 		 	
		  	Director	 		 	
				
		  		 		 	

				
		  		 		 	Date: 17.4.03

 Enclosures 

 

 
 PHILIP MORRIS 
 MANAGEMENT SERVICES S.A. 
  

					
	TELEPHONE: (41-21) 618 41 84	  	 	  	AVENUE DE COUR 107
	CABLE:SWIPOLD LAUSANNE	  		  	CASE POSTALE
	              TELEX: 45 45 64	  		  	1001 LAUSANNE
	   TELEFAX: (41-21) 618 46 18	  		  	SWITZERLAND

  

					
	 CONFIDENTIAL
	  	 	  	 
			
	Mr Matteo Pellegrini	  	Lausanne, March 24, 2003	  	
	C/o Philip Morris Italy S.p.A.	  		  	
	Via Salandra 18	  		  	
	00187 Roma	  		  	
	Italy	  		  	

 Dear Mr Pellegrini, 
 This letter confirms the terms of your employment effective April 1, 2003 with Philip Morris Management Services S.A. (“the Company”). 

For the purposes of benefits which are linked to seniority in the Company, your initial entry date in the PM group of companies will be taken into
account, i.e., July 15, 1991. 
 Compensation 
 The elements of your compensation are set forth on the attached sheet. Your base salary will be paid in twelve (12) equal monthly instalments and reviewed annually, for the first time on
April 1, 2004. 
 As explained in the PMI International Assignment Policy (“the Policy”), when working for the Company on a
foreign assignment, your compensation is adjusted in several ways to enable you to maintain a reasonably comparable home country standard of living in the host location and allowing for the costs (personal income taxes, social security
contributions, participation in other mandatory state schemes, home country contributory benefit schemes and housing and utilities) for which you would normally be responsible while working in your home country. Your home country, for the purpose of
your remuneration package, shall be deemed to be Lausanne, Switzerland. Your point of origin for the purposes of home leave will be deemed as Geneva, Switzerland. 

			
	 Mr Matteo Pellegrini
	  	Page No 2

  
  

Pension 
 You will continue to be a
member of the “Caisse de pensions Philip Morris en Suisse, providing old age, disability, and survivor’s benefits. For further details, please refer to the Pension Fund regulations. 
 According to the current Pension Fund regulations, you will pay a contribution equivalent to 6% of your pensionable salary. Your contribution will be deducted each month from your salary. 

Accident Insurance 
 During your
employment with the Company, you are covered by a group accident insurance policy in accordance with the Federal Accident Insurance Law (LAA). In the event of occupational and non-occupational accidents this provides you with the following basic
insurance coverage, free of charge: 
  

	•	 	 Reimbursement of health care costs; 

  

	•	 	 Salary continuation; 

  

	•	 	 Survivor’s benefits; 

  

	•	 	 Permanent disability benefits. 

 Since the benefits provided under this law are minimum standards, the Company supplements them through a separate insurance contract as follows: 

 

	•	 	 Full reimbursement of health care costs irrespective of the doctor’s rates charged and the rate level for hospital room and board;

  

	•	 	 Annual base salary guaranteed for two (2) years from the day of the accident. 

Life Insurance 
 Within the scope of the
insurance carrier regulations and in co-ordination with the Pension Fund, you are provided, free of charge, with insurance cover in case of death and permanent disability. 
 Health Insurance 
 You will join the Company group health insurance contract. Employees and
their eligible dependents (spouse and dependent children up to age 18 or up to age 25 if full time student or apprentices) are enrolled into this group health insurance scheme. The Company bears a substantial portion of the insurance premium cost.
International Assignments will provide you full details of the coverage. 
 In addition, 100% of the annual base salary is paid for up to two
(2) years from the first day you are unable to work due to a long-term illness. This cover is provided free of charge. 

			
	Mr Matteo Pellegrini	  	Page No 3

  

 
 Medical Examination 

You and your relocating family will be entitled to both a pre-assignment and an annual personal medical examination as detailed in the Policy. 

Vacation 
 Your
annual entitlement to vacation will be 20 days per calendar year and will be increased to 25 days per calendar year from your 5th year of service with Philip Morris Companies or age 50 (whichever comes first). Your entitlement will be further
increased to 30 days per calendar year after the age of 55 and 10 years of service. 
 Your entitlement to public holidays will be in accordance
with local office practice. 
 Confidentiality and Confidential Information 
 The terms and conditions of your employment, whether set out herein or notified separately to you in writing, are strictly confidential. You must also take reasonable steps to ensure that all confidential
and commercially sensitive information belonging to or concerning the Company or any of its affiliates is safeguarded, and you will return any such information maintained in written or other tangible form promptly following the termination of your
employment. 
 Privacy Policy and Data Protection 
 As part of Philip Morris International’s career and skills development program, information about your employee status, personnel profile and similar matters may be transmitted to the Company’s
affiliates, whether in Switzerland or elsewhere. This information is treated confidentially and in accordance with Philip Morris International’s Privacy Policy and Principles. By signing this letter, you will consent to such transmittal, though
you may at any time withdraw this consent by notice in writing to the Human Resources Department. 
 Expatriate Status 

In accepting the terms and conditions of employment contained herein, you acknowledge that the Company requests that you accept an assignment to work on
behalf of an affiliate of the Company. In the event that you agree to accept such an assignment, you acknowledge that your benefits and entitlements as an expatriate will be determined in accordance with the Policy and that you will not be eligible
for any duplication of such benefits and entitlements. However, you will be notified separately in writing of your entitlement to any further benefits for which you become eligible as a consequence of your acceptance of an assignment. 

			
	 Mr Matteo Pellegrini
	  	Page No 4

  
  

Miscellaneous 
 This letter, when
countersigned by you, will represent the complete agreement between you and the Company concerning its subject matter and will supersede and replace any previous agreements or understandings between you and the Company or any of its affiliates. This
agreement may not be modified or waived in any respect except in a written document duly signed by you and the Company. 
 This agreement will
be governed by and construed in accordance with Swiss law. The Company’s Human Resource policies shall also apply. 
 Please indicate your
acceptance of the foregoing by countersigning and returning the enclosed copy of this letter to the attention of Jessica Wallentin, International Assignments, Lausanne, Switzerland. 
 Yours sincerely, 
 PHILIP MORRIS MANAGEMENT SERVICES S.A. 

 

			
	 By
	 	 

		 	Alistair Davison
		 	Director

  

							
	 By
	  	 

	 		 	Acknowledged and agreed
		  	 Gonzague Dufour
 Director
	 		 	
		  		 		 	 

				
		  		 		 	Date: 17.4.03Terms and Conditions of Stock Unit Award

 Exhibit 10.1 
 QLOGIC CORPORATION 
 2005 PERFORMANCE INCENTIVE PLAN 

TERMS AND CONDITIONS OF STOCK UNIT AWARD 
 1. General. 
 Subject to these Terms and Conditions of Stock Unit
Award (these “Terms”) and the QLogic Corporation 2005 Performance Incentive Plan (the “Plan”), QLogic Corporation (the “Corporation”) has granted to the Grantee (as defined below) a credit of stock units under the Plan
(the “Stock Unit Award” or “Award”) with respect to the number of stock units provided in the Notice of Grant Agreement (“Grant Notice”) corresponding to that particular Award grant (subject to adjustment as provided in
Section 7.1 of the Plan) (the “Stock Units”). As used herein, the term “stock unit” means a non-voting unit of measurement which is deemed for bookkeeping purposes to be equivalent to one outstanding share of the
Corporation’s Common Stock (subject to adjustment as provided in Section 7.1 of the Plan) solely for purposes of the Plan and these Terms. The recipient of the Award identified in the Grant Notice is referred to as the “Grantee.”
The effective date of grant of the Award as set forth on the Grants tab on the CEFS website (www.ubs.com/cefs/qlgc) is referred to as the “Award Date.” Capitalized terms are defined in the Plan if not defined herein. The Award has
been granted to the Grantee in addition to, and not in lieu of, any other form of compensation otherwise payable or to be paid to the Grantee. The Stock Units shall be used solely as a device for the determination of the payment to eventually be
made to the Participant if such Stock Units vest pursuant to Section 2. The Stock Units shall not be treated as property or as a trust fund of any kind. 
 The Grant Notice and these Terms are collectively referred to as the “Stock Unit Award Agreement” applicable to the Stock Units, or this “Stock Unit Award Agreement.” 

2. Vesting. 

Subject to adjustment under Section 7.1 of the Plan and further subject to early termination under Section 6 of these Terms, the
Award shall vest and become non-forfeitable with respect to twenty-five (25%) of the total number of Stock Units on each of the first, second, third and fourth anniversaries of the Award Date. 

3. Continuance of Employment/Service Required; No Employment/Service Commitment. 

The vesting schedule requires continued employment or service through each applicable vesting date as a condition to the vesting of the
applicable installment of the Award and the rights and benefits under this Stock Unit Award Agreement. Employment or service for only a portion of the vesting period, even if a substantial portion, will not entitle the Grantee to any proportionate
vesting or avoid or mitigate a termination of rights and benefits upon or following a termination of employment or services as provided in Section 6 below or under the Plan. 

Nothing contained in this Stock Unit Award Agreement or the Plan constitutes a continued employment or service commitment by the
Corporation or any of its Subsidiaries, affects the Grantee’s status, if he or she is an employee, as an employee at will who is subject to termination without cause, confers upon the Grantee any right to remain employed by or in

  
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service to the Corporation or any Subsidiary, interferes in any way with the right of the Corporation or any Subsidiary at any time to terminate such employment or service, or affects the right
of the Corporation or any Subsidiary to increase or decrease the Grantee’s other compensation. 
 4. Dividend and Voting Rights.

 The Grantee shall have no rights as a stockholder of the Corporation, no dividend rights and no voting rights with respect
to the Stock Units and any shares of Common Stock underlying or issuable in respect of such Stock Units until such shares of Common Stock are actually issued to and held of record by the Grantee. No adjustments will be made for dividends or other
rights of a holder for which the record date is prior to the date of issuance of the stock certificate. 
 5. Crediting of Vested Stock
Unit Awards; Tax Withholding. 
 5.1 Crediting of Vested Stock Unit Awards. 

On or as soon as administratively practical following each vesting of the applicable portion of the total Award pursuant to
Section 2 (and in all events not later than two and one-half months after the vesting date), the Corporation shall deliver to the Grantee a number of shares of Common Stock (either by delivering one or more certificates for such shares or by
entering such shares in book entry form, as determined by the Corporation in its discretion) equal to the number of Stock Units subject to this Award that vest on the applicable vesting date, unless such Stock Units terminate prior to the given
vesting date pursuant to Section 6. The Corporation’s obligation to deliver or credit shares of Common Stock with respect to vested Stock Units is subject to the condition precedent that the Grantee or other person entitled under the Plan
to receive any shares with respect to the vested Stock Units (a) deliver to the Corporation any representations or other documents or assurances required pursuant to Section 8.1 of the Plan and (b) make arrangements satisfactory to
the Corporation to pay or otherwise satisfy the tax withholding requirements with respect to the vested Stock Units. The Grantee shall have no further rights with respect to any Stock Units that are paid or that terminate pursuant to Section 6.

 The Corporation has established a web – based system for managing Stock Unit Awards. Currently, UBS Financial Services,
Inc. manages Stock Unit Awards. In the event that the Grantee wishes to sell shares of Common Stock granted pursuant to a vested Stock Unit Award, the Grantee must contact UBS either by logging on to the UBS OneSource website
(http://www.ubs.com/onesource/qlgc) or by calling the UBS Call Center at 1-866-756-4421. UBS will request from the Grantee information regarding the Common Stock to be sold and the order type. 

5.2 Responsibility for Taxes. The ultimate liability for any and all tax, social insurance and payroll tax withholding legally
payable by an employee under applicable law (including without limitation laws of foreign jurisdictions)(“Tax-Related Items”) is and remains Grantee’s responsibility and liability and the Corporation (a) makes no representations
or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Award, including the grant or vesting of the Award and the subsequent sale of the shares of

  
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Common Stock subject to the Award; and (b) does not commit to structure the terms of the grant or any aspect of the Award to reduce or eliminate Grantee’s liability for Tax-Related
Items. 
 Upon the granting of a Stock Unit Awards or the vesting of shares of the Common Stock in respect of the Stock Unit
Awards, the Corporation (or the Subsidiary last employing the Grantee) shall have the right at its option to (a) require the Grantee to pay or provide for payment in cash of the amount of any taxes that the Corporation or the Subsidiary may be
required to withhold with respect to such payment and/or distribution, or (b) deduct from any amount payable to the Grantee the amount of any taxes which the Corporation or the Subsidiary may be required to withhold with respect to such payment
and/or distribution. In any case where a tax is required to be withheld in connection with Stock Unit Awards or the delivery of shares of Common Stock under this Stock Unit Award Agreement, the Administrator may, in its sole discretion, direct the
Corporation or the Subsidiary to reduce the number of Stock Unit Awards or shares to be delivered by (or otherwise reacquire) the appropriate number of whole shares, valued at their then fair market value (with the “fair market value” of
such shares determined in accordance with the applicable provisions of the Plan), to satisfy such withholding obligation at the minimum applicable withholding rates. Alternatively, or in addition, if permissible under local law, the Corporation may
sell or arrange for the sale of shares of Common Stock that Grantee is due to acquire to meet the minimum withholding obligations for Tax-Related Items. Finally, Grantee shall pay to the Corporation any amount of any Tax-Related Items that the
Corporation may be required to withhold as a result of Grantee’s participation in the Plan or Grantee’s purchase of shares of Common Stock that cannot be satisfied by the means previously described. 

6. Early Termination of Award. 
 The Grantee’s Stock Units shall terminate to the extent such units have not become vested prior to the first date the Grantee is no longer employed by the Corporation or one of its Subsidiaries,
regardless of the reason for the termination of the Grantee’s employment with the Corporation or a Subsidiary, whether with or without cause, voluntarily or involuntarily. If the Grantee is employed by a Subsidiary and that entity ceases to be
a Subsidiary, such event shall be deemed to be a termination of employment of the Grantee for purposes of this Agreement, unless the Grantee otherwise continues to be employed by the Corporation or another of its Subsidiaries following such event.
If any unvested Stock Units are terminated hereunder, such Stock Units shall automatically terminate and be cancelled as of the applicable termination date without payment of any consideration by the Corporation and without any other action by the
Grantee, or the Grantee’s beneficiary or personal representative, as the case may be. The Administrator shall be the sole judge of whether the Grantee continues to render employment or services for purposes of this Stock Unit Award Agreement.

 7. Restrictions on Transfer. 
 Neither the Stock Unit Award, nor any interest therein or amount or shares payable in respect thereof may be sold, assigned, transferred, pledged or otherwise disposed of, alienated or encumbered, either
voluntarily or involuntarily. The transfer restrictions in the preceding sentence shall not apply to (a) transfers to the Corporation, or (b) transfers by will or the laws of descent and distribution. 

  
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 8. Adjustment. 
 Upon the occurrence of certain events relating to the Corporation’s stock contemplated by Section 7.1 of the Plan, the Administrator shall make adjustments if appropriate in the number of Stock
Units then outstanding and the number and kind of securities that may be issued in respect of the Stock Unit Award. 
 9. Data Privacy
Consent. 
 Grantee explicitly and unambiguously consents to the collection, use and transfer, in electronic or other
form, of Grantee’s personal data as described in this document by and among, as applicable, the Corporation, its Subsidiaries, or affiliates for the exclusive purpose of implementing, administering and managing Grantee’s participation in
the Plan. 
 Grantee further understands that the Corporation, its Subsidiaries or affiliates hold certain personal information
about Grantee, including, but not limited to, Grantee’s name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any shares of stock held in the Corporation
and details of all Awards or other entitlements to shares of Common Stock awarded, canceled, exercised, vested, unvested or outstanding in Grantee’s favor, for the purpose of implementing, administering and managing the Plan (“Data”).
Grantee understands that Data may be transferred to any third parties assisting in the implementation, administration and management of the Plan, that these recipients may be located in Grantee’s country, or elsewhere, and that the
recipient’s country may have different data privacy laws and protections than Grantee’s country. Grantee authorizes the recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of
implementing, administering and managing Grantee’s participation in the Plan, including any requisite transfer of such Data as may be required to a broker or other third party with whom Grantee may elect to deposit any shares of Common Stock
acquired upon vesting of the Award. Grantee understands that Data will be held only as long as is necessary to implement, administer and manage Grantee’s participation in the Plan. Grantee understands that he or she may, at any time, view Data,
request additional information about the storage and processing of Data, require any necessary amendments to Data or withdraw the consents herein by contacting the Corporation’s human resources department. Grantee understands that withdrawal of
consent may affect Grantee’s ability to exercise or realize benefits from the Award. 
 10. Nature of Grant. 

In accepting the grant of the Award, Grantee acknowledges that: (i) the Plan is established voluntarily by the Corporation, it is
discretionary in nature and it may be modified, suspended or terminated by the Corporation at any time, as provided in the Plan and these Terms; (ii) the grant of the Award is voluntary and occasional and does not create any contractual or
other right to receive future grants of stock units, or benefits in lieu of stock units even if stock units have been granted repeatedly in the past; (iii) all decisions with respect to future grants will be at the sole discretion of the
Corporation; (iv) Grantee’s participation in the Plan shall not create a right to further employment and shall not interfere with the ability of the Corporation or its subsidiaries to terminate Grantee’s employment relationship at any
time with or without cause; (v) Grantee’s participation in the Plan is voluntary; (vi) in the event that 

  
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Grantee is not an employee of the Corporation, the Award grant will not be interpreted to form an employment contract or relationship with the Corporation, and furthermore, the Award grant will
not be interpreted to form an employment contract with the Corporation and any of its Subsidiaries or affiliates; (vii) the future value of the underlying shares of Common Stock is unknown and cannot be predicted with certainty; (viii) if
Grantee vests in his or her Award and shares of Common Stock are no longer restricted, the value of those shares of Common Stock acquired upon vesting may increase or decrease in value, even below the price at which such Award was originally
granted; and (ix) no claim or entitlement to compensation or damages arises from termination of the Award or diminution in value of the Award or shares of Common Stock acquired pursuant to the Award and Grantee irrevocably releases the
Corporation and its Subsidiaries and affiliates from any such claim that may arise. 
 11. Clawback Policy. 

Notwithstanding anything else contained herein or in the Plan to the contrary, this Option Agreement is subject to the Company’s
clawback policy, as well as the “clawback” provisions of applicable law, rules and regulations, as each may be adopted and in effect from time to time (collectively, the “Clawback Policy”). The provisions of the Clawback Policy
are in addition to (and not in lieu of) any rights to repayment the Company may have under Section 304 of the Sarbanes-Oxley Act of 2002 and other applicable laws. 
 12. Notices. 
 Any notice to be given under the terms of this Stock
Unit Award Agreement shall be in writing and addressed to the Corporation at its principal office to the attention of the Secretary, and to the Grantee at the address last reflected on the Corporation’s payroll records, or at such other address
as either party may hereafter designate in writing to the other. Any such notice shall be delivered in person or shall be enclosed in a properly sealed envelope addressed as aforesaid, registered or certified, and deposited (postage and registry or
certification fee prepaid) in a post office or branch post office regularly maintained by the United States Government. Any such notice shall be given only when received, but if the Grantee is no longer employed by the Corporation or a Subsidiary,
shall be deemed to have been duly given five business days after the date mailed in accordance with the foregoing provisions of this Section 11. 
 13. Plan. 
 The Award and all rights of the Grantee under this Stock
Unit Award Agreement are subject to the terms and conditions of the Plan, incorporated herein by this reference. The Grantee agrees to be bound by the terms of the Plan and this Stock Unit Award Agreement. The Grantee acknowledges having read and
understanding the Plan and this Stock Unit Award Agreement. Unless otherwise expressly provided in other sections of this Stock Unit Award Agreement, provisions of the Plan that confer discretionary authority on the Board or the Administrator do not
and shall not be deemed to create any rights in the Grantee unless such rights are expressly set forth herein or are otherwise in the sole discretion of the Board or the Administrator so conferred by appropriate action of the Board or the
Administrator under the Plan after the date hereof. 

  
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 14. Entire Agreement. 
 This Stock Unit Award Agreement and the Plan together constitute the entire agreement and supersede all prior understandings and agreements, written or oral, of the parties hereto with respect to the
subject matter hereof. The Plan and this Stock Unit Award Agreement may be amended pursuant to Section 8.6 of the Plan. Such amendment must be in writing and signed by the Corporation. The Corporation may, however, unilaterally waive any
provision hereof in writing to the extent such waiver does not adversely affect the interests of the Grantee hereunder, but no such waiver shall operate as or be construed to be a subsequent waiver of the same provision or a waiver of any other
provision hereof. 
 15. Governing Law. 
 This Stock Unit Award Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware without regard to conflict of law principles thereunder. 

16. Effect of this Agreement. 
 Subject to the Corporation’s right to terminate the Award pursuant to Section 7.4 of the Plan, this Stock Unit Award Agreement shall be assumed by, be binding upon and inure to the benefit of
any successor or successors to the Corporation. 
 17. Limitation on Participant’s Rights.  

Participation in the Plan confers no rights or interests other than as herein provided. This Stock Unit Award Agreement creates only a
contractual obligation on the part of the Corporation as to amounts payable and shall not be construed as creating a trust. Neither the Plan nor any underlying program, in and of itself, has any assets. The Grantee shall have only the rights of a
general unsecured creditor of the Corporation with respect to amounts credited and benefits payable, if any, with respect to the Stock Units, and rights no greater than the right to receive the Common Stock as a general unsecured creditor with
respect to Stock Units, as and when payable hereunder. 
 18. Section Headings. 

The section headings of this Stock Unit Award Agreement are for convenience of reference only and shall not be deemed to alter or affect
any provision hereof. 

  
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 19. Construction.  

It is intended that the terms of the Award will not result in the imposition of any tax liability pursuant to Section 409A of the
Code. The Stock Unit Award Agreement shall be construed and interpreted consistent with that intent. 
 20. Acceptance.

 In accepting the grant of the Award, Grantee acknowledges receipt of a copy of the Plan, the Grant Notice and these Terms.
Grantee has read and understands the terms and provisions thereof, and has accepted the Award subject to all terms and conditions of the Plan, the Grant Notice and these Terms. Grantee acknowledges that there may be adverse tax consequences upon
vesting of the Award or disposition of the shares of Common Stock acquired upon vesting of the Award and that Grantee should consult a tax adviser prior to such exercise or disposition. 

  
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