Document:

Exhibit 4.16

 

CELESTICA INC.

 

DIRECTORS’ SHARE COMPENSATION PLAN

 

1.                                      Each director of Celestica Inc. (the “Corporation”) who is not an employee of the Corporation or any of its subsidiaries or of Onex Corporation (an “Eligible Director”) shall be entitled to make an annual election (a “DSU Election”), on or before the last business day of the calendar year preceding the calendar year that includes the date of the annual meeting of shareholders of the Corporation (the “Annual Meeting”), to be paid either 50% or 100% (the “DSU Election Percentage”) of the aggregate of the annual retainer fees (“Annual Retainer Fees”) and meeting and travel fees (“Meeting Fees”) (collectively,  the “Annual Compensation”)  payable to such Eligible Director for services rendered in respect of the period commencing on the date of the Annual Meeting and ending on the date of the subsequent Annual Meeting (the “Compensation Period”) in deferred share units (each a “DSU”).  Subject to the terms of this Plan, each DSU shall entitle such Eligible Director to receive, in accordance with either paragraph 10 or paragraph 12,  a subordinate voting share of the Corporation (a “Share”) or a cash payment equal to the value of a Share following the date, subject to paragraph 16, on which the Eligible Director is no longer any of the following: (i) a director of the Corporation; (ii) an employee of the Corporation; or (iii) a director or employee of any corporation that does not deal at arm’s length with the Corporation (the “Retirement Date”).

 

2.                                      An individual who becomes an Eligible Director during a Compensation Period shall be entitled to make a DSU Election and select a DSU Election Percentage to apply in respect of Annual Compensation payable in respect of fiscal quarters of the Compensation Period that commence after the date such DSU Election is made.  A DSU Election made under this paragraph 2 shall not be effective in respect of the Eligible Director’s Annual Compensation for the Compensation Period in which the individual becomes an Eligible Director if: (i) such election is not made within 30 days after the individual becomes an Eligible Director; or (ii) to the extent required by Section 409A of the United States Internal Revenue Code of 1986, as amended from time to time (the “Code”), the individual previously participated in this Plan or any other plan that is required to be aggregated with this Plan for purposes of Section 409A of the Code.

 

3.                                      If an Eligible Director does not make a DSU Election in accordance with paragraph 1 or 2, as applicable, his or her DSU Election Percentage for the Compensation Period or portion thereof, as applicable, shall be deemed to be 100%.

 

4.                                      In addition, each Eligible Director, upon becoming an Eligible Director, shall receive a number of DSUs (the “Initial Grant”) equal to the product of: (i) the aggregate amount (in U.S. dollars) of the four Quarterly Equity Awards (as defined below) to be granted to Eligible Directors (other than an Eligible Director who holds the office of Chair of the Board (as defined below)) for the fiscal year of the Corporation that includes the date on which the individual becomes an Eligible Director, multiplied by (ii) 150%, divided by (iii) the closing price of the Shares on the New York Stock Exchange (or such other stock exchange on which the Shares are listed if they are not listed on the New York Stock

 

 

Exchange)  (the “NYSE”)  on the last trading day of the fiscal quarter immediately preceding the date on which the individual becomes an Eligible Director.

 

5.                                      As well, the Board of Directors of the Corporation (the “Board”) shall, from time to time,  determine an amount,  expressed in U.S.  dollars,  that shall be allocated to an Eligible Director for each fiscal quarter of the Corporation for purposes of calculating the number of DSUs to be provided to such Eligible Director under paragraph 8 (the “Quarterly Equity Award”).  Quarterly Equity Awards shall be granted to each Eligible Director as of the last day of each fiscal quarter on which the Eligible Director continues as a director of the Corporation and is not an employee of the Corporation or any of its subsidiaries or of Onex Corporation in connection with the services provided by the Eligible Director to the Corporation as a member of the Board. In the event that an Eligible Director ceases to be an Eligible Director during a fiscal quarter, the Eligible Director shall receive a pro rated portion of the Quarterly Equity Award that reflects the Eligible Director’s actual period of service as an Eligible Director from the commencement of the applicable fiscal quarter to the date the Eligible Director ceases to be an Eligible Director (the “Termination Date”).

 

6.                                      Annual Retainer Fees are paid to Eligible Directors quarterly, in arrears.  The number of DSUs that an Eligible Director shall be entitled to receive in lieu of each instalment of the Annual Retainer Fee payable to such Eligible Director shall be equal to the product of: (i) the total amount of such instalment,  or,  in the event that an Eligible Director’s Termination Date occurs during a fiscal quarter, a pro rated amount of such instalment that reflects the Eligible Director’s actual period of service as an Eligible Director from the commencement of the applicable fiscal quarter to the Eligible Director’s Termination Date, multiplied by (ii) the DSU Election Percentage, divided by (iii) the closing price of the Shares on the NYSE on the last trading day of the fiscal quarter in respect of which the instalment is to be paid or, in the event that the Eligible Director’s Termination Date occurs prior to the end of a fiscal quarter, such price on the last trading day of the immediately preceding fiscal quarter.  Such DSUs shall be credited to the Eligible Director’s Account (as defined below) as of the last day of the applicable fiscal quarter or, in the event that the Eligible Director’s Termination Date occurs prior to the end of such fiscal quarter, as of the Eligible Director’s Termination Date.  If a quarterly instalment of Annual Retainer Fees includes a portion of the Annual Retainer Fee payable in respect of two Compensation Periods, and the proportion of the Annual Compensation elected by an Eligible Director to be paid in DSUs differs between the Compensation Periods, then the amount of cash and number of DSUs to be paid to such Eligible Director shall be determined separately for each of the part Compensation Periods included in such fiscal quarter, otherwise in accordance with this paragraph.

 

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7.                                      The number of DSUs that an Eligible Director shall be entitled to receive in lieu of Meeting Fees payable to such Eligible Director for each meeting during such Compensation Period shall be equal to the product of: (i) the total amount of such Meeting Fees, multiplied by (ii) the DSU Election Percentage, divided by (iii) the closing price of the Shares on the NYSE on the last trading day of the fiscal quarter that includes the date of such meeting in respect of which the Meeting Fees are payable or, in the event that the Eligible Director’s Termination Date occurs prior to the end of a fiscal quarter, such price on the last trading day of the immediately preceding fiscal quarter.  Provided the Eligible Director remains an Eligible Director on the applicable meeting date, such DSUs shall be credited to the Eligible Director’s Account (as defined below) as of the last day of the fiscal quarter that includes the date of such meeting in respect of which the Meeting Fees are payable, or, in the event that the Eligible Director’s Termination Date occurs prior to the end of such fiscal quarter, as of the Eligible Director’s Termination Date.

 

8.                                      Quarterly Equity Awards are to be paid in the form of DSUs. The number of DSUs that an Eligible Director shall be entitled to receive in respect of a Quarterly Equity Award shall be equal to the product of: (i) the total dollar amount allocated to such Eligible Director under paragraph 5 for the relevant quarter, or, in the event that an Eligible Director’s Termination Date occurs during a fiscal quarter, a pro rated amount of such allocation that reflects the Eligible Director’s actual period of service as an Eligible Director from the commencement of the applicable fiscal quarter to the Eligible Director’s Termination Date, divided by (ii) the closing price of the Shares on the NYSE on the last trading day of the fiscal quarter in respect of which the allocation is to be made or, in the event that the Eligible Director’s Termination Date occurs prior to the end of a fiscal quarter, such price on the last trading day of the immediately preceding fiscal quarter. Such DSUs shall be credited to the Eligible Director’s Account as of the last day of the applicable fiscal quarter or, in the event that the Eligible Director’s Termination Date occurs prior to the end of such fiscal quarter, as of the Eligible Director’s Termination Date.

 

9.                                      The Corporation shall keep or cause to be kept records for each Eligible Director, including an account (the “Account”) showing the number of DSUs, determined in accordance with paragraphs 4, 5, 6, 7 and 8, and in each case rounded to two decimal places, that the Eligible Director has been granted. A written confirmation of the balance in each Eligible Director’s Account shall be provided by the Corporation to the Eligible Director at least annually, but the Corporation shall have no obligation to issue any certificate or other instrument evidencing the DSUs. An Eligible Director shall not be entitled to any DSUs granted as part of an Eligible Director’s Initial Grant that are forfeited and cancelled in accordance with paragraph 11, and all such DSUs shall cease to be recorded in the Eligible Director’s Account effective as of his or her Retirement Date.

 

10.                               Subject to paragraphs 11 and 12, on the date that is forty-five (45) days following the Eligible Director’s Retirement Date or the following business day if such forty-fifth (45th) day is not a business day (the “Valuation Date”), or as soon as practicable thereafter (but in all cases within ninety (90) days following the Eligible Director’s Retirement Date), the Corporation, through its Share Plan Administrator, shall deliver to

 

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the Eligible Director the number of Shares that equals the number of DSUs in the Eligible Director’s Account on the Valuation Date, less such number of Shares the value of which is required to satisfy applicable withholding taxes and source deductions.  The Administrator shall, in accordance with the instructions of the Eligible Director or the Eligible Director’s legal representative, as applicable, deliver to the Eligible Director or the Eligible Director’s legal representative, as applicable, a certificate representing such Shares, or credit such Shares to an account with a broker in the name of the Eligible Director or the Eligible Director’s legal representative, as applicable, as soon as practicable thereafter.

 

11.                               Each Initial Grant shall vest and become eligible for settlement in accordance with paragraph 10 as follows:

 

(a)                                 if an Eligible Director’s Retirement Date is less than 12 months after the date on which he or she becomes an Eligible Director, all of the DSUs comprising such Eligible Director’s Initial Grant shall be forfeited and cancelled as of such Eligible Director’s Retirement Date;

 

(b)                                 if an Eligible Director’s Retirement Date is at least 12 months but less than 24 months after the date on which he or she becomes an Eligible Director, one-third (1/3) of the DSUs comprising such Eligible Director’s Initial Grant shall vest and the remaining two-thirds (2/3) of such DSUs shall be forfeited and cancelled as of such Eligible Director’s Retirement Date;

 

(c)                                  if an Eligible Director’s Retirement Date is at least 24 months but less than 36 months after the date on which he or she becomes an Eligible Director, two-thirds (2/3) of the DSUs comprising such Eligible Director’s Initial Grant shall vest and the remaining one-third (1/3) of such DSUs shall be forfeited and cancelled as of such Eligible Director’s Retirement Date;

 

(d)                                 if an Eligible Director’s Retirement Date is at least 36 months after the date on which he or she becomes an Eligible Director, all of the DSUs comprising such Eligible Director’s Initial Grant shall vest as of such Eligible Director’s Retirement Date;

 

(e)                                  notwithstanding subparagraphs 11(a) through (d) above, in the event of a “Change in Control” for purposes of the Long Term Incentive Plan of the Corporation, all of an Eligible Director’s Initial Grant will vest as of such Eligible Director’s Retirement Date, where the Eligible Director has ceased to be a member of the Board as a result of such Change in Control.

 

No Shares or payment of any kind shall be provided to an Eligible Director or any person claiming through an Eligible Director in respect of any portion of the Eligible Director’s Initial Grant that does not vest as provided in this paragraph 11.

 

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12.                               The Corporation shall have the right, in its sole discretion, to pay all or a portion of the value of an Eligible Director’s DSUs to the Eligible Director or the Eligible Director’s legal representative, as applicable, in a lump sum cash payment in an amount equal to the product obtained by multiplying the number of DSUs in the Eligible Director’s Account on the Valuation Date by the closing price of the Shares on the NYSE (or, if the Shares are not listed on the NYSE, then on the over the counter market, or, if the Shares are not listed on the over the counter market, the fair market value of the Shares as determined by the Board in good faith) on the Valuation Date, less applicable withholding taxes and source deductions, and shall do so if there is no public market for the Shares.  Such lump sum payments shall be made on the Valuation Date, or as soon as practicable thereafter (but in all cases within ninety (90) days following the Eligible Director’s Retirement Date).

 

13.                               Each Eligible Director who receives Shares under this Plan shall comply with all applicable securities regulations and policies of the Corporation relating to the purchase and sale of Shares.

 

14.                               In the event of a (i) capital reorganization, (ii) merger, (iii) amalgamation, (iv) offer for shares of the Corporation which if successful would entitle the offeror to acquire all of the shares of the Corporation or all of one or more particular class(es) of shares of the Corporation to which the offer relates, (v) sale of a material portion of the assets of the Corporation, (vi) arrangement or other scheme of reorganization (a “Reorganization”) or proposed Reorganization, or (vii) an increase or decrease in the outstanding Shares as a result of a stock split, consolidation, subdivision, reclassification or recapitalization but, for greater certainty, not as a result of the issuance of Shares for additional consideration, by way of a stock dividend or other distribution in the ordinary course or as a result of a rights offering, the Corporation may adjust the Account of each Eligible Director in such manner as the Corporation determines, in its discretion, is equitable to reflect such event. The adjustment so made by the Corporation, if any, shall be conclusive and binding for all purposes of this Plan, and Eligible Directors (and any person claiming through an Eligible Director) shall have no other rights as a result of any change in the Shares or of any other event.

 

15.                               The Corporation may amend or terminate the Plan in whole or in part at any time as it deems necessary or appropriate, but no such amendment or termination shall, without the consent of the Eligible Director or unless required by law, adversely affect the rights of an Eligible Director with respect to DSUs to which the Eligible Director is then entitled under the Plan.  Notwithstanding the foregoing, any amendment of the Plan shall be such that the Plan continuously meets the requirements of paragraph 6801(d) of the regulations under the Income Tax Act (Canada) or any successor to such provision.

 

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16.                               The Corporation intends that the Plan comply with the requirements of section 409A of the Code, insofar as this Plan pays benefits that are subject to taxation under the Code that are subject to section 409A of the Code, and intends to administer the Plan accordingly.  If any one or more provisions of the Plan may be interpreted to comply with, or be exempt from, Section 409A of the Code, then such provision(s) shall be so interpreted. For greater certainty, notwithstanding anything in the Plan to the contrary, with respect to all Plan benefits payable to or with respect to an Eligible Director (if any Plan benefits payable to or with respect to that Eligible Director are subject to taxation under the Code and are subject to section 409A of the Code), “Retirement Date” shall mean the date on which the Eligible Director has experienced a “separation from service” as defined in Section 409A of the Code and applicable regulations and guidance thereunder such that it is reasonably anticipated that no further services will be performed and provided that, in any event, all payments under the Plan to Eligible Directors who are subject to taxation under the Code shall be made in compliance with Section 409A of the Code.

 

17.                               The Board shall have full power and authority,  subject to the provisions hereof, to construe and interpret the Plan. The Board’s decisions, determinations and interpretations shall be final, conclusive and binding on all past, present and future Eligible Directors and all other persons, if any, having an interest herein. Neither the Board nor its members shall be liable for any action, omission or determination made in good faith with respect to the Plan.

 

As amended July 25, 2013

 

6Exhibit 10.24

 

NOTICE OF GRANT OF RESTRICTED STOCK UNIT AWARD AND AGREEMENT

 

UNDER THE MOSYS, INC. 2010 EQUITY INCENTIVE PLAN

 

Name of Participant:

 

Award Date:

 

Number of RSUs (at 100% of Attainment):

 

Vesting Commencement Date:

 

Vesting Schedule:

 

MoSys, Inc. (the “Company”) has granted you (the “Participant”) an award (the “Award”) of the number of Restricted Stock Units (“RSUs”) (as defined in the Company’s 2010 Equity Incentive Plan (the “Plan”)) to obtain shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”) as set forth in this Notice of Grant of Restricted Stock Unit Award and Agreement (the “Agreement”) and the Plan. The RSUs are in all respects subject to continued employment or other association with the Company and all other terms and conditions of this Agreement. By accepting this grant, the Participant is agreeing that the Participant and the Participant’s spouse or domestic partner are bound by all of the terms of this Agreement with respect to such Award, and the Participant: (a) acknowledges receipt of and represents that the Participant has read and is familiar with this Agreement and the Plan in the form most recently prepared in connection with the registration with the Securities and Exchange Commission of shares issuable pursuant to the Plan, (b) accepts the grant subject to all of the terms and conditions of this Agreement and the Plan and (c) agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions arising under this Agreement or the Plan.

 

1.  Vesting

 

No portion of the shares of Common Stock that the Participant is entitled to receive will be issued until such portion has vested. The RSUs shall vest as provided in this Agreement, provided in each case that the Participant is then, and since the Award Date has remained, in continued employment or other association with the Company.

 

Alternative 1:  Except as otherwise provided in this Agreement or under the Plan, the RSUs shall vest in accordance with the above-stated Vesting Schedule, subject to the Participant’s continued employment or other association with the Company.

 

Alternative 2:  The award of RSUs will be granted contingent upon successfully achieving the following performance goal, subject to the Participant’s continued employment or other association with the Company: [               ].  [Optional for use with performance based units or Qualified Performance-based Awards.]

 

2.  Issuance of Common Stock

 

(a)           Each vested RSU entitles the Participant to receive one share of Common Stock.

 

(b)           As soon as practicable following the vesting of RSUs but in any event no later than 21⁄2 months following the calendar year in which such RSUs vested (or any earlier date, after vesting, required to avoid characterization as non-qualified deferred compensation under Section 409A of the Code), the shares of Common Stock underlying the vested RSUs (the “Shares”) will be delivered to the Participant, subject to the terms and conditions of the Plan, including Section 9 thereof.

 

(c)           Until such time as any Shares have been issued to the Participant pursuant to Section 2(b) above, the Participant shall not have any rights as a holder of shares of Common Stock underlying the RSUs, including, but not limited to, voting rights, rights to receive dividends and other distributions with respect to Common Stock, and stockholder inspection rights.

 

 

3.  Termination of Continuous Employment

 

The Participant’s right in any RSUs that are not vested as of the date on which the Participant’s continued employment or other association with the Company has ceased shall automatically terminate on such date, and such RSUs shall be canceled as provided under the Plan and shall be of no further force and effect. In the event of the termination of Participant’s continued employment or other association with the Company, the Company, as soon as practicable following the effective date of termination, shall issue shares of Common Stock to the Participant (or the Participant’s designated beneficiary or estate executor in the event of Participant’s death) with respect to any RSUs which, as of the effective date of termination of such employment or other association, have vested but for which shares of Common Stock had not yet been issued to the Participant.

 

4.  Incorporation of General Terms and Conditions

 

Notwithstanding anything herein to the contrary, this Award shall be subject to and governed by all the terms and conditions of the Plan. Capitalized terms in this Agreement shall have the meaning specified in the Plan, unless a different meaning is specified in this Agreement.

 

5.  Transferability

 

This Agreement is personal to the Participant, is non-assignable, and is not transferable in any manner, by operation of law, or otherwise, other than by will or the laws of descent and distribution. This Award is available, during the Participant’s lifetime, only to the Participant, and thereafter, only to the Participant’s designated beneficiary.

 

6.    Not Employment Contract

 

Nothing in this Agreement shall confer upon the Participant any right to continue in the employ of the Company or shall interfere with or restrict in any way the rights of the Company, which are hereby expressly reserved, to discharge the Participant at any time for any reason whatsoever, with or without cause, subject to the provisions of applicable law.

 

7.  Adjustment for Corporate Actions

 

If subsequent to the Award Date the outstanding shares of Common Stock are increased, decreased, or exchanged for a different number or kind of shares or other securities, or if additional shares or new or different shares or other securities are distributed with respect to shares of Common Stock, as a result of a reorganization, recapitalization, reclassification, stock dividend, stock split, reverse stock split, or other similar distribution with respect to such shares of Common Stock, an appropriate and proportionate adjustment will be made in the numbers and kinds of shares or other securities then subject to the Award.

 

8.  Treatment of Award in a Corporate Transaction

 

In a Corporate Transaction, the Committee, in its sole and absolute discretion, may take any one or more of the following actions as to the Award:

 

(a)           Assumption and Substitution.  Provide that the Award shall be assumed, or substantially equivalent rights shall be provided in substitution therefor, by the acquiring or succeeding entity (or an affiliate thereof).

 

(b)           Termination and Forfeiture.  Upon written notice to Participant, provide that any RSUs subject to the Award shall terminate and be forfeited immediately prior to the consummation of the Corporate Transaction to the extent they are then subject to a Risk of Forfeiture.

 

(c)           Acceleration of Vesting.  Provide that any Risk of Forfeiture applicable to RSUs which is not based on achievement of Performance Goals or other business objectives shall lapse upon consummation of the Corporate Transaction with respect to all or a portion of the RSUs then subject to such Risk of Forfeiture.

 

(d)           Achievement of Performance Goals. If the Award is conditioned on the achievement of Performance Goals or other business objectives, provide that such Performance Goals or objectives and the target payout opportunities shall be deemed to have been satisfied as of the effective date of the Corporate Transaction as to (i) none, (ii) all or (iii) a pro rata number of Shares based on the assumed achievement of all relevant Performance Goals or other business objectives and the length of time within the Restriction Period or Performance Period which has elapsed prior to the Corporate Transaction.

 

(e)           Any combination of the foregoing.

 

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None of the foregoing shall apply, however, if specifically prohibited under applicable laws, or by the rules and regulations of any governing governmental agencies or national securities exchanges on which the Common Stock is listed.  Nor shall any of the foregoing apply in the case of a Qualified Performance-Based Award except to the extent the foregoing would not interfere with the qualification of the grant of the Award under Section 162(m) of the Code.

 

9.  Tax Withholding

 

The Participant shall, not later than the date as of which the Award becomes a taxable event for Federal income tax purposes, pay to the Company or make arrangements satisfactory to the Company for payment of any Federal, state, and local taxes required by law to be withheld on account of such taxable event. The Participant hereby authorizes the Company to withhold and/or sell shares of Common Stock from the Shares to be issued pursuant hereto in order to satisfy the minimum tax withholding obligation with respect to Participant.  Alternatively, the Participant may elect to have the minimum tax withholding obligation satisfied, in whole or in part, by providing notice to the Company and making adequate provision in cash for any sums required to satisfy the minimum required tax withholding amount due.

 

10.  Tax Consequences

 

The Company makes no representation or warranty as to the tax treatment to the Participant of the Participant’s receipt of the Award or vesting of RSUs or upon the Participant’s sale or other disposition of the Common Stock issued pursuant to the RSUs. The Participant should rely on his or her own tax advisors for all such advice.

 

11.  Community Property

 

Without prejudice to the actual rights of the spouses as between each other, for all purposes of this Agreement, the Participant shall be treated as agent and attorney-in-fact for that interest held or claimed by the Participant’s spouse with respect to the RSUs and Shares issued upon settlement of such RSUs and the parties hereto shall act in all matters as if the Participant was the sole owner of the RSUs and Shares.  This appointment is coupled with an interest and is irrevocable.

 

12.  Miscellaneous

 

(a)           Notice under this Agreement shall be given to the Company at its principal place of business, and shall be given to the Participant at the address set forth below, or in either case at such other address as one party may subsequently furnish to the other party in writing.

 

(b)           This Agreement does not confer upon the Participant any rights with respect to continuation of employment by the Company or any of its subsidiaries.

 

(c)           The Committee may amend the terms of this Agreement, prospectively or retroactively, provided that the Agreement as amended is consistent with the terms of the Plan, but no such amendment shall impair the Participant’s rights under this Agreement without the Participant’s consent.

 

(d)           This Agreement shall be construed and enforced in accordance with the laws of California, without regard to the conflicts of laws principles thereof.

 

(e)           This Agreement shall be binding upon and inure to the benefit of any successor or assign of the Company and any executor, administrator, trustee, guardian or other legal representative of the Participant.

 

(f)            This Agreement may be executed in counterparts. This Agreement and the Plan together constitute the entire agreement between the parties relative to the subject matter of this Agreement, and supersede all communications, whether written or oral, relating to the subject matter of this Agreement.

 

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THIS AGREEMENT is binding upon the parties and entered into effective as of the Award Date set forth above.

 

 

	
MoSys, Inc.
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    	
Signature of Participant
    	
 
    
	
Title:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Participant’s Address:
    	
 
    
						

 

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