Document:

exv10w11w2

 

EXHIBIT 10.11.2

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

	 	 	 
	Grant Date:

	 	                    
	 
	 	 
	Type of Option:

	 	Nonqualified Stock Option
	 
	 	 
	Shares Subject to Option:

	 	                    
	 
	 	 
	Exercise Price Per Share:

	 	$                    
	 
	 	 
	Term of Option:

	 	                     years

Shares subject to issuance under this Option will vest as follows:                     ; provided, however, if Grantee’s service
terminates prior to the date this option would otherwise become fully vested as a result of (i) death, (ii) permanent disability,
(iii) retirement on or after his or her 65th birthday, (iv) upon the occurrence of a Reorganization or Change of Control (as defined
in the Plan) or (v) not being nominated by the Nominating & Corporate Governance Committee for re-election to the Company’s Board of
Directors, this option will be deemed fully vested as of the date of such termination of service.

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

Safeguard Scientifics, Inc.

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	 

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

 

 

1. Option Expiration. The Option shall automatically terminate upon the happening of the
first of the following events:

     (a) the expiration of the 90-day period after the Grantee ceases to be employed by, or
providing services to, the Company, if the termination is for any reason other than disability (as
defined in the Plan), death, cause (as defined in the Plan), retirement as provided herein, or not
being nominated for re-election to the Company’s Board of Directors by the Corporate Governance
Committee if the Compensation Committee has determined that the Grantee is a Retiring Director;

     (b) the expiration of the one-year period after the Grantee ceases to be employed by, or
providing services to, the Company on account of the Grantee’s disability;

     (c) the expiration of the one-year period after the Grantee ceases to be employed by, or
providing services to, the Company if the Grantee dies while employed by the Company or within
three months after the Grantee ceases to be so employed or provide such services on account of a
termination described in subparagraph (a) above;

     (d) the expiration of the one-year period after the Grantee’s employment or service terminates
as a result of retirement on or after the Grantee’s sixty-fifth birthday, or after such earlier
date as may be determined by the Committee, in its sole discretion, to be warranted given the
particular circumstances surrounding the earlier termination of the Grantee’s employment or
service;

     (e) the expiration of the two-year period after the Grantee’s service on the Company’s Board
of Directors terminates as a result of not being nominated by the Nominating & Corporate Governance
Committee for re-election to the Company’s Board of Directors;

     (f) the date on which the Grantee ceases to be employed by, or providing services to, the
Company for cause; or

     Notwithstanding the foregoing, in no event may the Option be exercised after the expiration of
the Term of Option specified on the reverse side. Any portion of the Option that is not vested at
the time the Grantee ceases to be employed by, or providing service to, the Company shall
immediately terminate.

     In the event a Grantee ceases to be employed by, or providing service to, the Company for
cause, the Grantee shall automatically forfeit all shares underlying any exercised portion of an
Option for which the Company has not yet delivered the share certificates upon refund by the
Company of the exercise price paid by the Grantee for such shares.

2. Exercise Procedures.

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

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

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

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

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

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

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

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

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

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

11. Notice. Any notice to the Company provided for in this instrument shall be addressed
to the Company in care of the Chief Financial Officer at the Company’s headquarters and any notice
to the Grantee shall be addressed to such Grantee at the current address shown on the payroll of
the Company, or to such other address as the Grantee may designate to the Company in writing. Any
notice shall be delivered by hand, sent by telecopy or enclosed in a properly sealed envelope
addressed as stated above, registered and deposited, postage prepaid, in a post office regularly
maintained by the United States Postal Service.exv10w19

 

EXHIBIT 10.19

SAFEGUARD SCIENTIFICS, INC.

COMPENSATION SUMMARY – NON-EMPLOYEE DIRECTORS

During 2006, non-employee directors were compensated for their service as a director as shown in
the table below:

	 	 	 	 	 
	Compensation Item	 	Amount
	Annual Board Retainers:
	 	 	 	 
	Chairman of the Board
	 	$	50,000	 
	Other Directors
	 	 	35,000	 
	Additional Annual Chair Retainers:
	 	 	 	 
	Audit Committee Chair
	 	 	10,000	 
	Compensation Committee Chair
	 	 	7,500	 
	Nominating & Corporate Governance Committee Chair
	 	 	5,000	 
	Meeting Attendance Fees:
	 	 	 	 
	Board
	 	 	2,000	 
	Committee
	 	 	1,500	 

Effective January 1, 2007, the annual retainer for the Audit Committee Chair was increased to
$15,000.

We also reimburse non-employee directors for expenses they incur to attend Board and Committee
meetings.

Each non-employee director receives an initial option grant to purchase 50,000 shares of Safeguard
common stock upon initial election to the Board. Each non-employee director also receives an
annual service option grant to purchase 25,000 shares. Directors’ options have an eight-year term.
Initial option grants vest 25% each year starting on the first anniversary of the grant date.
Annual service option grants vest 100% on the first anniversary of the grant date. The exercise
price is equal to the fair market value of a share of our common stock on the grant date.

Safeguard maintains a Group Deferred Stock Unit Program for Directors (“Directors’ DSU Program”)
which allows each director, at his or her election, to receive deferred stock units in lieu of
retainer and meeting fees paid to directors (“Directors’ Fees”). The deferral election applies to
Directors’ Fees to be received for the following calendar year and remains in effect for each
subsequent year unless the director elects otherwise at the end of the calendar year preceding the
year in which the services are rendered. The number of deferred stock units awarded is determined
by dividing the Directors’ Fees by the fair market value of Safeguard’s stock on the date on which
the director would have otherwise received the Directors’ Fees. Each director also receives a
number of matching share units, based on the same fair market value calculation, equal to 25% of
the Directors’ Fees deferred. A director is always 100% vested in Directors’ Fees deferred; the
matching share units vest 100% on the first anniversary of the date the matching share units are
credited to the director’s account. Each deferred stock unit entitles the director to receive one
share of Safeguard common stock on or about the first anniversary of the date upon which the
director leaves the Safeguard Board. A director also may elect to receive the stock in annual
installments over a period of up to five years after leaving the Board.

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