Document:

exv10w4

 

EXHIBIT 10.4

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 employment 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) in the event Grantee’s employment is terminated by
the Company without cause or Grantee terminates his employment with good reason
as set forth in the Grantee’s letter agreement with the Company dated
____________, this option will be deemed fully vested as of the date of such
termination.

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

This Option is designated an incentive stock option under Section 422 of the Internal Revenue Code of 1986, as
amended (the “Code”). If the aggregate fair market value of the stock on the date of the grant with respect to
which incentive stock options are exercisable for the first time by the Grantee during any calendar year, under
the Plan or any other stock option plan of the Company or a parent or subsidiary, exceeds $100,000, then the
Option, as to the excess, shall be treated as a nonqualified stock option that does not meet the requirements of
Section 422. If and to the extent that the Option fails to qualify as an incentive stock option under the Code,
the Option shall remain outstanding according to its terms as a nonqualified stock option.

By accepting an incentive stock option under the Plan, Grantee agrees to notify
the Company in writing immediately after he or she makes a disqualifying
disposition (as described in the Code and regulations thereunder) of any stock
acquired pursuant to the exercise of incentive stock options granted under the
Plan. A disqualifying disposition is generally any disposition occurring within
two years of the date the incentive stock option was granted or within one year
of the date the incentive stock option was exercised, whichever period ends
later.

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:                                                          

                                                         

 

 

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 involuntary termination without cause or voluntary
termination with good reason (as defined in Grantee’s agreement), disability
(as defined in the Plan), death, cause (as defined in the Plan), or retirement
as provided herein;

     (b) the expiration of the three-year period after the Grantee ceases to
be employed by, or providing services to, the Company, on account of the
Grantee’s involuntary termination without cause or voluntary termination with
good reason as set forth in the letter agreement between the Company and
Grantee dated    ;

     (c) 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;

     (d) 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;

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

     (f) 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.

     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 minimum marginal tax
rate for federal (including FICA), state and local tax liabilities.

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

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

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

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

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

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

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

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

11. Notice. Any notice to the Company provided for in this instrument shall be
addressed to the Company in care of the Chief Financial Officer at the
Company’s headquarters and any notice to the Grantee shall be addressed to such
Grantee at the current address shown on the payroll of the Company, or to such
other address as the Grantee may designate to the Company in writing. Any
notice shall be delivered by hand, sent by telecopy or enclosed in a properly
sealed envelope addressed as stated above, registered and deposited, postage
prepaid, in a post office regularly maintained by the United States Postal
Service.exv10w5

 

EXHIBIT 10.5

SAFEGUARD SCIENTIFICS, INC.

GROUP STOCK UNIT AWARD PROGRAM

Under the Safeguard Scientifics, Inc. _______Equity Compensation Plan

     Safeguard Scientifics, Inc. (the “Company”) hereby grants to you    
restricted stock awards that vest over a    -year period (the “Award” or
“Awards”). The Award entitles you to receive in the future common shares of
stock of the Company (the “Shares”) under the Safeguard Scientifics, Inc.
   Equity Compensation Plan (the “Plan”). Set forth below is a brief
description of the tax treatment of this Award as well as some of the more
significant features and requirements of this Program. However, we encourage
you to consult with your tax advisor for any advice you need regarding this
Award. To participate in the Program, you need to execute this document, which
shall constitute your acknowledgment that all decisions and determinations by
the Company shall be final and binding on the Company, you and any other
persons having or claiming an interest hereunder.

     When an Award becomes vested, as described below, the Company will
establish a bookkeeping account in your name (the “Account”). The Account will
be credited with the number of Shares subject to the Award. The Account will
be subject to the terms of the Plan, including the terms regarding the
treatment of stock awards granted under the Plan upon a Change of Control of
the Company (as defined in the Plan). When the Company distributes a dividend
to its shareholders, the Company will pay you an amount equal to the amount
that would have been paid to your Account if you actually owned the Shares.

     You will become vested in the Shares attributable to the Award (the “Award
Shares”) as follows:    . The
vesting of the Award Shares is cumulative and all Award Shares shall be fully
vested on the    anniversary of the date the Award Shares were credited
to your Account if you continue to be employed by the Company through such
date. If the vesting schedule would produce fractional shares, the number of
Award Shares that vest shall be rounded up for any portion of a Share equal to
 .5 or greater or down for any portion of a Share equal to less than .5, in each
case to the nearest whole Share. If your employment with the Company
terminates for any reason other than death, Disability (as defined in the
Plan), retirement on or after age 65 or after a Change of Control (as defined
in the Plan) before the Award Shares have become fully vested, Award Shares
that are not then vested shall be forfeited and must be immediately returned to
the Company. If you terminate due to death, Disability, retirement on or after
age 65 or after a Change of Control, all of your Award Shares shall
automatically become 100% fully vested.

     There are no income tax consequences to you upon the granting or vesting
of an Award. Instead, your recognition of ordinary income will be postponed
until you actually receive the Shares. The Fair Market Value of the Award
Shares, as defined in the Plan, will then be treated as ordinary compensation
income on the date you actually receive them. Any amounts that you receive as
a result of the distribution of a dividend will also be treated as ordinary
compensation income when you actually receive such amounts. When you sell the
Award Shares, you will realize capital gain or loss (long-term or short-term,
depending on the length of time the Award Shares were held after distribution)
in an amount equal to the difference between your tax basis

 

 

in the Award Shares and the selling price. Your tax basis will ordinarily be
the Fair Market Value of the Award Shares at the time you received them.
However, your Award Shares will be subject to withholding for Medicare tax
purposes in the year the Award Shares become vested. In addition, the Award
Shares may be subject to withholding for Social Security tax purposes in the
year the Award Shares become vested to the extent you have not met the Social
Security tax wage base. If the Award Shares are paid to you in a year after
the Award Shares have become vested, the Award Shares and the appreciation on
the Award Shares will be exempt from any additional Medicare or Social Security
tax withholding.

     You may irrevocably elect, by providing written notice to the Company, to
receive all or a portion of the vested Award Shares credited to your Account
after the date on which you become vested in such Award Shares, which means
that if you are vested in 25% of your Award Shares after one year, you may
elect to receive a distribution of all or a portion of this 25%. Such an
election must be in writing, set forth the number of vested Award Shares that
will be distributed and be filed with the Company one year prior to the date of
distribution. In addition, you may elect to have the Award Shares become
distributable to you on a date that is later than the one-year anniversary of
the date you terminate employment again by notifying the Company of the date on
which you wish to receive a distribution. Such notice must be in writing and
filed with the Company no later than the date you terminate employment with the
Company and once made is irrevocable. Notwithstanding the foregoing, however,
distribution of all of your Award Shares must be made by the later of (i) the
date on which you attain age 70 or (ii) the fifth anniversary of your
termination of employment with the Company. If you do not make any of the
foregoing elections, you will receive a distribution of Shares equal to the
Award Shares credited to your Account as soon as is practicable after the
one-year anniversary of the date you terminate employment with the Company, but
in no event later than sixty (60) days after the one-year anniversary of the
date you terminate employment.

     Following your termination of employment, distribution of your Shares may
be made in a single distribution, or over a period of time, not to exceed five
annual installments depending on the written election you provide to the
Company. You may change this election at any time prior to your termination of
employment by providing the Company with a new written election. If you do not
make an election, your account balance will be distributed to you in a single
lump sum as soon as practicable after the one-year anniversary of your
termination of employment, but in no event later than sixty (60) days after the
one-year anniversary of the date you terminate employment. However, if your
Account balance is less than $50,000 (determined by multiplying the number of
Award Shares in your Account by the Fair Market value of the Shares on the date
of your termination) on the date you terminate employment with the Company,
your Account balance will be distributed to you in a single lump as soon as
practicable after your termination of your employment.

     In the event the Company determines that you have encountered an
unforeseeable hardship, upon receipt of your written request, you may redeem as
many Award Shares as necessary to alleviate your hardship up to the number of
vested Award Shares in your Account. Shares redeemed as the result of a
hardship will be distributed as soon as possible after the Company determines
you have encountered an unforeseeable hardship. For purposes of this Program,
unforeseeable hardship is an unexpected need for cash arising from an illness,
casualty loss, sudden financial reversal, or other such unforeseeable
occurrence. Cash needs arising from

 

 

foreseeable events such as the purchase of a house or education expenses
for children are not considered to be the result of an unforeseeable hardship.

     If you die before your Account has been fully paid out, the beneficiary
designated on your Designation Form will receive a distribution of a number of
Shares equal to the remaining Award Shares credited to your Account as soon as
administratively practicable after your death. If your beneficiary predeceases
you or if, for some reason, you have not designated a beneficiary, your Award
Shares will be paid to your surviving spouse, or, if none, your estate.

     Upon request, the Company will provide to you a statement showing the
number of Award Shares that have been credited to your Account.

     This Program may be amended, suspended or terminated at any time by the
Company; provided, however, that no amendment, suspension or termination will
adversely affect your rights.

	 	 	 	 	 
	Dated:	 	Safeguard Scientifics, Inc.
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	

Acceptance of Grant:

 

 

SAFEGUARD SCIENTIFICS, INC. _____ EQUITY COMPENSATION PLAN

DEFERRED STOCK UNIT PROGRAM

ELECTION FORM

DISTRIBUTIONS

Distributions.
        shares I receive under the Program (“Award Shares”) for
the         calendar year shall be distributed on ,         which date is as least one
year from the date of this election and is prior to the later of (i) the
date on which I attain age 70 or (ii) the date that is five years after
the date on which I terminate employment with the Company. I understand
that this election is irrevocable. I further understand that if I do not
make such an election, 100% of my Award Shares will be distributed to me
as soon as practicable after the one-year anniversary of my termination of
employment.

FORM OF DISTRIBUTION

I hereby elect to have any Award Shares distributed to me in the following form:

     In a single distribution at the distribution time for the Account as discussed above.

     In substantially equal annual installments over a period of    years
[(not more than 5)] with the first installment being made at the distribution
time for the Account discussed above and the remaining installments being made
on each anniversary thereof.

I understand that if I elect to receive a percentage of my Award Shares prior
to my termination of employment that I will receive those Award Shares in a
single distribution. I further understand that I may change this election up
until the earlier of (i) the date that is one year prior to the date on which I
have elected to have my Award Shares distributed or (ii) the date I terminate
employment.

This election supersedes any prior election I have made under the Plan.

GRANTEE SIGNATURE

		
	Date: 	

Receipt Acknowledged:

	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	

	 	
	 	 	 	 
	 
	 	 	 	 	 	 
	Title:

	 	 	 	Date:	 	 
	

	 	

	 	 	 	

 

 

SAFEGUARD SCIENTIFICS, INC.

____ EQUITY COMPENSATION PLAN

GROUP STOCK UNIT AWARD PROGRAM

BENEFICIARY DESIGNATION

Beneficiary to whom payment is to be made (as above specified) in the event of
my death before receiving distribution of the entire balance credited to my
Account:

	 	 	 
	Name
	 	Address
	
 
	 	
 
	
 
	 	
 
	
 
	 	
 
	
 
	 	
 
	
 
	 	
 
	
 
	 	
 
	
 
	 	
 

     Contingent Beneficiary to whom payment is to be made (as above specified)
in the event of my death before receiving payment of the entire balance
credited to my Account if the Beneficiary listed above dies before the entire
balance has been distributed.

	 	 	 
	Name
	 	Address
	
 
	 	
 
	
 
	 	
 
	
 
	 	
 
	
 
	 	
 
	
 
	 	
 
	
 
	 	
 
	
 
	 	
 

     I hereby revoke any Designation of Beneficiary I may previously have made
and designate the above as my Beneficiary(ies).

	 	 	 	 	 
	

	 	Date:

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