Document:

exv10w6

 

EXHIBIT 10.6

SAFEGUARD SCIENTIFICS, INC.

GROUP DEFERRED STOCK UNIT PROGRAM

FOR DIRECTORS

Under the Safeguard Scientifics, Inc. ______ Equity Compensation Plan

     Safeguard Scientifics, Inc. (the “Company”) generally pays retainer fees,
Board meeting fees, Committee chair retainer fees, and Committee meeting fees
to its directors (“Directors Fees”). By filing the attached form (the
“Election Form”) with the Company you will commence participation in the
Safeguard Scientifics, Inc. Group Deferred Stock Unit Program for Directors
under the Safeguard Scientifics, Inc.    Equity Compensation Plan (the
“Program”). For 2004, you may elect to defer Directors Fees to be earned after
June 30, 2004. Your participation in the Program will automatically terminate
on the date you cease to be a director and are no longer entitled to receive
Directors Fees from the Company.

     The following sets forth a brief description of the tax treatment
associated with your election to participate in the Program as well as some of
the more significant features and requirements of the Program. However, we
encourage you to consult with your tax advisor before making an election to
receive deferred shares in lieu of your Directors Fees.

     In general, if you elect to participate in the Program, you may elect to
defer all or part of the Directors Fees to be earned after the date of your
election. Upon filing your election, you (a) receive in exchange for your
Directors Fees a stock award under the Safeguard Scientifics, Inc.    
Equity Compensation Plan (the “Plan”) and (b) defer the receipt of the shares
under that stock award until the date you terminate service. The stock award
will provide you with the right to receive a number of shares of common stock
of the Company that is equal to the sum of (1) your Directors Fees divided by
the Fair Market Value (as defined in Section 5(b)(ii) of the Plan) of a share
of the Company’s common stock (the “Stock”), as of the date on which your
Directors Fees otherwise would have been paid (the “Deferral Shares”), plus (2)
25% of your Directors Fees divided by the Fair Market Value of a share of Stock
as of the date on which your Directors Fees otherwise would have been paid
(“Matching Shares”). If, at the time you make your deferral election, there is
a trading blackout period, or if otherwise deemed necessary by the Company, the
Directors Fees you elect to defer will be held and invested in a money market
account until the close of the blackout period, at which time the deferred
Directors Fees will be converted into Deferral Shares and Matching Shares based
on the Fair Market Value of a share of Stock on the date the blackout period
closed, or, on the date determined by the Company, as applicable.

     You will always be fully vested in your Deferral Shares but, upon the date
you cease to provide services to the Company, you shall not be entitled to
receive your Matching Shares unless such shares have become vested as described
below. Your execution of an Election Form shall constitute acknowledgement
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 under
the Program.

     If you make an election in 2004, your deferral election will apply to
Directors Fees to be earned after June 30, 2004 for the 2004 calendar year and
for Directors Fees to be earned during

 

 

each calendar year thereafter that you remain a director and are entitled
to receive Directors Fees from the Company, unless you elect to cease making
deferrals on or before November 30 of the calendar year immediately preceding
the calendar year for which you wish your deferral election to cease to apply.
Your election with respect to 2004 Directors Fees will be irrevocable once
made.

     To elect to defer all or part of the Director Fees to be earned after June
30, 2004 for the 2004 calendar year (and subsequent calendar years), you must
complete and file an Election Form with the Company on or before June 11, 2004.
If you choose not to defer Directors Fees for 2004 but would like to defer
Directors Fees for a subsequent calendar year, you must complete and file an
Election Form on or before November 30 of the calendar year immediately
preceding the calendar year for which you wish your deferral election to become
effective. Once made, your election will be irrevocable with respect to the
initial calendar year for which the election is made, and will remain in effect
for all subsequent calendar years, unless you revoke your election as described
above. Notwithstanding any provision of the Program to the contrary, an
election that is made to defer Directors Fees that is made after you first
become eligible to participate in this Program must be made within 30 days
after you become eligible.

     Upon your filing of the Election Form with the Company, the Company will
establish a bookkeeping account in your name (the “Account”). The Account will
be credited with the number of Deferral Shares and Matching Shares you will be
entitled to receive on a deferred basis. The Deferral Shares and Matching
Shares will be subject to the terms of the Plan regarding stock awards,
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).

     If 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 you if
you actually owned the Stock represented by the Deferral Shares and Matching
Shares. Any amounts that you receive as a result of the distribution of a
dividend will also be treated as ordinary income when you actually receive such
amounts.

     You will become vested in 100% of the Matching Shares upon the first
anniversary of the date on which your Directors Fees otherwise would have been
paid. If you cease to provide services to the Company for any reason other
than death, Disability (as defined in the Plan), upon the occurrence of a
Change of Control (as defined in the Plan), retirement on or after your 65th
birthday, or as a result of your not being nominated by the Corporate
Governance Committee for re-election to the Company’s Board of Directors before
the Matching Shares have become fully vested, Matching Shares that are not then
vested shall be forfeited and must be immediately returned to the Company. If
you terminate due to death, Disability, upon the occurrence of a Change of
Control, retirement on or after your 65th birthday, or as a result of your not
being nominated by the Corporate Governance Committee for re-election to the
Company’s Board of Directors, all of your Matching Shares shall automatically
become 100% fully vested.

     Ordinarily, upon payment of Directors Fees, you must recognize as ordinary
taxable income the amount of such Directors Fees. If you elect to be credited
with Deferral Shares and Matching Shares in lieu of cash Directors Fees, your
recognition of ordinary income will be postponed until you actually receive the
Deferral Shares and Matching Shares. The Fair Market Value of the Stock you
receive in respect of the Deferral Shares and the Matching Shares on the

2

 

date on which you actually receive them following your termination of
service will then be treated as ordinary income. When you sell the Stock, you
will realize capital gain or loss (long-term or short-term, depending on the
length of time the Stock was held) in an amount equal to the difference between
your tax basis in the Stock and the selling price. For the Stock attributable
to the Deferral Shares and the Matching Shares, your tax basis will ordinarily
be the Fair Market Value of the Stock at the time you receive it.

     In order to benefit from this deferred tax treatment for Directors Fees to
be earned after June 30, 2004, you must complete and return an Election Form on
or before June 11, 2004. As indicated above, your election will relate to
Directors Fees earned after June 30, 2004 for the 2004 calendar year and
Directors Fees to be earned for each calendar year thereafter unless you revoke
your election on or before November 30 of the calendar year preceding the
calendar year for which you wish your deferral election to cease to apply. (An
Election Form to defer Directors Fees commencing in 2004 is enclosed). If you
do not wish to defer Directors Fees for 2004, but would like to defer Directors
Fees for a subsequent calendar year, you must return an Election Form on or
before November 30 of the calendar year preceding the calendar year for which
you wish your election to become effective.

     In general, the Stock credited to your Account will be distributed to you
as soon as possible after the one-year anniversary of the date you cease to
provide services to the Company, but in no event later than sixty (60) days
thereafter. However, you may elect to have all or a portion of the Stock in
your Account distributed to you on a date that is later than the one year
anniversary of the date you cease to provide services to the Company by
notifying the Company of the date on which you wish to receive a distribution.
Such notice must be in writing, set forth the number of shares of Stock that
you request to be distributed and be filed with the Company prior to the date
on which you cease to provide services to the Company and is irrevocable.
Distribution of all of the Deferral Shares and Matching 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 service with the Company.

     You may elect to have the Company distribute Stock to you in a single
distribution, or over a period of time, not to exceed five annual installments.
You may change this election at any time prior to your termination of service.
If you do not make an election, your Account balance will be distributed in a
single lump sum as soon as practicable after the one year anniversary of the
date you cease to provide services to the Company. However, if your Account
balance is less than $50,000 (determined by multiplying the number of shares in
your Account by the Fair Market Value of the Shares on the date of your
termination) on the date you cease to provide services to the Company, your
Account balance will be distributed to you in a single lump sum as soon as
reasonably practicable after you cease to provide services to the Company. In
the event of a trading blackout period, or as otherwise deemed necessary by the
Company, distribution may be delayed until such blackout period closes, or as
determined by the Company, as applicable.

     In the event the Company determines that you have encountered an
unforeseeable hardship, upon receipt of your written request, you may redeem as
many Deferral Shares and vested Matching Shares as necessary to alleviate your
hardship up to the number of Deferral Shares and vested Matching Shares in your
Account. Stock redeemed as the result of a hardship will be distributed as
soon as possible after the Company determines you have encountered an

3

 

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. Notwithstanding anything in this Program to the contrary, if you
receive a distribution of Stock in a calendar year by reason of a hardship, any
election you have made under this Program for the remaining portion of the year
will be terminated and you will be prohibited from making an election under
this Program for the next calendar year.

     If you die before your Account has been fully paid out, the beneficiary
designated on your Election Form will receive a distribution of a number of
shares of Stock equal to the remaining Deferral Shares and Matching 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 Deferral Shares and Matching 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 Deferral Shares and Matching Shares that have been credited to your
Account.

     You may make an election to receive Deferral Shares and Matching Shares in
lieu of all or part of your Directors Fees and to defer receipt of the Deferral
Shares and Matching Shares by completing the attached Election Form and
returning it to the Corporate Secretary. If you wish to defer Directors Fees
to be earned after June 30, 2004, you must return the completed Election Form
no later than June 11, 2004. If you do not wish to make a deferral election
for 2004, but wish to defer receipt of Directors Fees for a subsequent calendar
year, you must complete an Election Form and return it to the Corporate
Secretary no later than November 30 of the calendar year immediately preceding
the calendar year for which you wish your deferral election to become
effective.

     This Program may be amended, suspended or terminated at any time by the
Company; provided, however that no amendment, suspension or termination that
occurs after Deferral Shares and Matching Shares have been credited to your
Account will adversely effect your rights in such Deferral Shares or Matching
Shares without your consent. Notwithstanding the foregoing, the Company may
amend or terminate the Plan immediately at any time if the Company deems such
amendment or termination appropriate to avoid adverse accounting or tax
consequences in connection with the Plan or should the financial accounting
rules or tax laws applicable to the Plan be revised so as to subject the
Company to adverse accounting consequences or to subject the Company or Plan
participants to adverse tax consequences, in connection with the Plan, as
determined by the Company in its sole discretion. In addition, the Company
reserves the right to freeze the Program at any time and to cease all elections
then in place to defer additional Directors Fees. Upon such an election, the
Company will communicate to you that the Program has been frozen and that no
Directors Fees will be deferred under the Program, regardless of any then
current election to the contrary. Deferrals of Directors Fees will thereafter
not be permitted until such time, if any, as the Company elects to re-institute
the Program. Upon such an event, distributions of Deferral Shares and Matching
Shares will continue to be made in accordance with the terms of this Program.

     If you have any questions, please call the Corporate Secretary at
877-506-7371.

4

 

SAFEGUARD SCIENTIFICS, INC. _____ EQUITY COMPENSATION PLAN

DEFERRED STOCK UNIT PROGRAM

DEFERRAL ELECTION FORM

Select and complete the following. Except as indicated below, capitalized
terms herein have the same meaning as ascribed to such terms under the
Safeguard Scientifics, Inc. Group Deferred Stock Unit Program for Directors
Under the Safeguard Scientifics, Inc. 1999 Equity Compensation Plan (the
“Program”) or under the Safeguard Scientifics, Inc. 1999 Equity Compensation
Plan (the “Plan”), as indicated.

		
	o 	Directors Fees. I hereby elect to receive a deferred stock award in
lieu of _________% or $_____________________ (select either a
percentage or indicate a flat dollar amount) of the Directors Fees (as
defined in the Program) I will earn as a result of my serving as a
member of the Board of Directors of Safeguard Scientifics, Inc. (the
“Company”). I understand that such stock award shall be for a number
of shares equal to (a) my Directors Fees divided by the Fair Market
Value (as defined in the Plan) of a share of Stock (as defined in the
Program) on the date on which I would have otherwise received the
Directors Fees (the “Deferral Shares”), plus (b) 25% of my Directors
Fees divided by the Fair Market Value of a share of Stock on the date
I would otherwise have received my Directors Fees (“Matching Shares”);
provided, however, that if at the time I make a deferral election
there is a trading blackout period in effect, I understand the
Directors Fees I elect to defer will be held and invested in a money
market account until the close of the blackout period, at which time
the deferred Directors Fees will be converted into Deferral Shares and
Matching Shares based on the Fair Market Value of a share of Stock on
the date the blackout period closes I understand that once filed,
this election will apply to the percentage or dollar amount of
Directors Fees indicated above to be earned after June 30, 2004 for
the 2004 calendar year and for each calendar year thereafter. I
understand that my election is irrevocable with respect to Directors
Fees to be earned on or after June 30, 2004 for the 2004 calendar year
but that I may revoke this election with respect to subsequent
calendar years by filing a notice with the Company no later than
November 30 of the calendar year immediately preceding the calendar
year for which I wish to revoke my deferral election.

Distributions. I understand that by completing this
election form my Deferral Shares and
Matching Shares will be distributed to me as
soon as is reasonably practicable after the
one-year anniversary of the date that I
cease to perform services for the Company.
I further understand that if I wish to defer
distribution of my Deferral Shares and
Matching Shares until a date that is after
the one-year anniversary of the date I cease
to perform services for the Company, I will
be required to provide the Company with
written notice of the date on which I would
like to receive a distribution of my
Deferral Shares and Matching Shares, and
that such written notice must be received by
the Company prior to the date that I cease
to provide services to the Company. I
further understand that I must receive a
distribution of my shares by the later of
(i) the date that I attain 70 or (ii) the
date that is five years after the date I
cease to provide services to the Company.

5

 

FORM OF DISTRIBUTION

I hereby elect to have any Deferral Shares and Matching Shares paid to me in
the following form [select and complete one of the following]:

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

		
	o 	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 each
anniversary thereof.

I understand that I may change this election at any time prior to the date I
cease to provide services to the Company.

BENEFICIARY DESIGNATION

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

	 	 	 
	
 
	 	
 
	Name
	 	Address

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

	 	 	 	 	 	 	 
	GRANTEE SIGNATURE	 	Receipt Acknowledged:
	 
	 	 	 	 	 	 
	 	 	 	 	Safeguard Scientifics, Inc.
	 
	 	 	 	 	 	 
	

	 	 	 	By:	 	 
	
	 	 	 	

	 
	 	 	 	 	 	 
	Date:

	 	 	 	Date:	 	 
	

	 	

	 	 	 	

6exv10w7

 

Exhibit 10.7

SAFEGUARD SCIENTIFICS, INC.

RESTRICTED STOCK GRANT TERMS

DATE OF GRANT: ______________

     Safeguard Scientifics, Inc. (the “Company”) adopted the    Plan
(the “Plan”) to give participants an ownership interest in the Company and to
create an incentive for participants to contribute to our growth, thereby
benefiting our stockholders, and aligning the economic interests of the
participants with those of our stockholders. This Restricted Stock Grant is
granted to    (the “Grantee”) this    day of
   ,    , in accordance with the terms of the Plan. Capitalized
terms used and not otherwise defined in this Grant are used herein as defined
in the Plan.

1. Stock Grant

     The Company hereby offers to the Grantee the opportunity to acquire from
the Company    shares of common stock of the Company, $.10
par value (the “Shares”), for no consideration.

     Subject to the Grantee’s acceptance of this offer, the Company will issue
the Shares in the name of the Grantee, which Shares shall be held in book entry
at Mellon Investor Services, LLC, the Company’s transfer agent, and shall be
subject to restrictions on transfer as set forth in this Restricted Stock
Grant.

2. Acceptance by the Grantee; Deposit of Certificates into Escrow

     The Grantee shall signify acceptance of the offer to acquire the Shares by
delivering to the Company, as escrow agent (the “Escrow Agent”):

     (i) a copy of the Acceptance of Grant which has been executed by the
Grantee; and

     (ii) if, after consulting with his or her personal tax and financial
advisor, the Grantee has determined that an 83b election should be made, two
executed copies of an 83(b) Election (you may obtain the appropriate form from
   if you desire to make an 83(b) Election).

     Upon receipt from the Grantee of the foregoing items, the Company shall
cause Mellon Investor Services, LLC to issue the Shares in Grantee’s name, in
book entry, to be held in accordance with the terms of this Grant.

3. Vesting and Forfeiture of Unvested Shares.

     (a) In the event of Grantee’s termination of employment for any reason
other than as set forth in Section 3(b) below, Grantee shall forfeit all Shares
in which Grantee is not vested at the time of his cessation of service in
accordance with the Vesting Schedule set forth in Section 3(b) (hereinafter
referred to as the “Unvested Shares”).

 

 

     (b) Grantee shall acquire a vested interest in, and the forfeiture
provisions of this paragraph shall lapse with respect to, the Shares as
follows:    ; provided, however, that in the event of
a “Change of Control Event,” as hereinafter defined in Section 3(c), the
Grantee shall be deemed to be fully vested in any Unvested Shares. In the
event of the Grantee’s disability, as determined in the sole discretion of the
Compensation Committee of the Company’s Board of Directors, the Grantee will
continue to vest according to the above schedule during the period of
disability, and upon return to employment with the Company upon the Grantee’s
recovery, during the period of the Grantee’s re-employment. In the event the
Grantee fails to return to employment upon recovery from disability, vesting
will cease and any Unvested Shares shall be forfeited.

     (c) A “Change of Control Event” is: (i) any merger or consolidation which
results in the Company’s voting securities outstanding immediately prior
thereto representing (either by remaining outstanding or by being converted
into voting securities of the surviving or acquiring entity) less than 50% of
the combined voting power of the Company’s voting securities or such surviving
or acquiring entity outstanding immediately after such merger or consolidation;
(ii) the acquisition by an individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act) (a “Person”) of
beneficial ownership of any of the Company’s capital stock if, after such
acquisition, such Person beneficially owns (within the meaning of Rule 13d-3
promulgated under the Securities Exchange Act) 50% or more of either (A) the
then-outstanding shares of the Company’s common stock (the “Outstanding Company
Common Stock”) or (B) the combined voting power of the Company’s
then-outstanding voting securities entitled to vote generally in the election
of directors (the “Outstanding Company Voting Securities”); PROVIDED, HOWEVER,
that for purposes of this subsection (ii), the following acquisitions shall not
constitute a Change of Control Event: (A) any acquisition directly from the
Company, (B) any acquisition by the Company, (C) any acquisition by any
employee benefit plan (or related trust) sponsored or maintained by the Company
or any corporation controlled by the Company, or (D) any acquisition by any
corporation pursuant to a transaction in which all or substantially all of the
individuals and entities who were the beneficial owners of the Outstanding
Company Common Stock and Outstanding Company Voting Securities immediately
prior to such transaction beneficially own, directly or indirectly, more than
50% of the then-outstanding shares of common stock and the combined voting
power of the then-outstanding voting securities.

4. Restrictions

     (a) Unvested Shares. All Unvested Shares will be held by the Escrow Agent
until they become vested. Upon receipt of the taxes which the Company is
required to withhold as set forth in Section 7 below, the Escrow Agent shall
deliver to the Grantee the Share certificate registered in the Grantee’s name
for the Vested Shares. The Grantee may not sell, assign, transfer, pledge or
otherwise dispose of any Unvested Shares until the scheduled Vesting Date and
then only after all applicable withholding taxes have been paid by the Grantee.

     (b) Impermissible Transfers Void. Any attempt to assign, transfer, pledge
or otherwise dispose of any Shares contrary to the provisions of this Grant,
and the levy of any

 

 

execution, attachment or similar process upon any Unvested Shares, shall be
null and void and without effect.

5. Effect of Changes in Shares

     If any change is made to the common stock of the Company by reason of
merger, consolidation, reorganization, recapitalization, stock dividend, stock
split, combination of shares, exchange of shares, or any other change in
capital structure made without receipt of consideration, then any new,
substituted, or additional securities distributed with respect to the Shares
shall be immediately subject to the restrictions imposed upon the Shares to the
same extent that the Shares immediately prior thereto have been covered by such
provisions.

6. Voting of Shares; Dividends

     The Grantee shall be entitled to exercise all voting rights in connection
with the Shares.

     Effective as of the date on which the Grantee signifies acceptance of the
Shares, the Grantee shall be entitled to receive any dividends, rights or other
distributions payable to stockholders of record of the Company on and after the
date of such acceptance; provided, however, that the Grantee shall not have any
dividend rights or any other rights whatsoever with respect to any Shares which
are forfeited in accordance with the terms of this Agreement.

7. Withholding of Taxes

     The Company shall have the right to require the Grantee to pay to the
Company, in cash, the amount of any taxes which the Company is required to
withhold in respect of this Grant or to take whatever action it deems necessary
to protect the interests of the Company in respect of such tax liabilities,
including, without limitation, withholding a portion of the Shares, selling for
Grantee’s account a portion of the Shares and applying the net proceeds thereof
to the payment of such taxes, or deducting from other wages, bonuses or other
amounts payable to the Grantee by the Company, any federal, state or local
taxes required by law to be withheld with respect to such Grant.

8. No Contract for Employment

     Nothing contained in this Grant shall be deemed to require the Company to
continue the Grantee’s employment. Except as may be provided in a written
employment contract executed by a duly authorized officer of the Company, the
Grantee shall at all times be an “employee-at-will” of the Company, and the
Company may discharge the Grantee at any time for any reason, with or without
cause.

9. Administration

     This Grant is made pursuant to the terms, conditions and other provisions
of the Plan as in effect on the Date of Grant, and as the Plan may be amended
from time to time in accordance with the provisions of the Plan. All questions
of interpretation and application of the Plan and of

 

 

this Grant shall be determined by the Compensation Committee of the Company’s
Board of Directors, in its discretion, and any such determination shall be
final and binding upon all persons. The validity, construction and effect of
this Grant shall be determined in accordance with the laws of the Commonwealth
of Pennsylvania, without giving effect to the principles of conflicts of law
thereof.

	 	 	 	 	 
	 	 	SAFEGUARD SCIENTIFICS, INC.
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	

 

 

ACCEPTANCE OF GRANT

        (the “Grantee”) acknowledges and agrees with the terms and
conditions of the attached Grant Letter pursuant to which Safeguard
Scientifics, Inc. (the “Company”) has offered the Grantee the opportunity to
acquire    shares of common stock of the Company, $.10 par value
(the “Shares”).

     As a condition to the issuance of the Shares, the Grantee hereby
represents and warrants to the Company and agrees with the Company as follows:

     1. Disposition of Shares. The Grantee hereby agrees not to sell, assign,
transfer, pledge or otherwise dispose of any portion of the Shares unless and
until the Grantee shall have complied with all of the requirements of the
Grant.

     2. Section 83(b) Election. The Grantee understands that under Section 83
of the Internal Revenue Code of 1986, as amended (the “Code”), the difference
between the purchase price (if any) paid for the Shares and their fair market
value on the date of vesting would be reportable as ordinary income at such
time. The Grantee understands that by filing an election with the Internal
Revenue Service pursuant to Section 83(b) of the Code within 30 days after the
Date of Grant, in lieu of the foregoing, the Grantee will be taxed at the time
the Shares are granted to the Grantee on the fair market value of the Shares.

     The Section 83(b) election, which may avoid adverse tax consequences in
the future, must be made within the 30-day period after the Date of Grant. The
form for making this election may be obtained from    . THE GRANTEE
ACKNOWLEDGES THAT IT IS THE GRANTEE’S SOLE RESPONSIBILITY TO SEEK ADVICE
REGARDING SECTION 83(B). THE GRANTEE REPRESENTS THAT HE OR SHE IS RELYING
SOLELY ON HIS OR HER ADVISORS WITH RESPECT TO THIS SECTION 83(B) ELECTION, AND
THE COMPANY SHALL HAVE NO RESPONSIBILITY OR LIABILITY IN CONNECTION THEREWITH.

     3. Withholding of Taxes. The Grantee understands that the Company shall
have the right to require the Grantee to pay to the Company the amount of any
taxes which the Company is required to withhold in respect of this grant or to
take whatever action it deems necessary to protect the interests of the Company
in respect of such tax liabilities, including, without limitation, withholding
a portion of the Shares, selling for Grantee’s account a portion of the Shares
and applying the net proceeds thereof to the payment of such taxes, or
deducting from other wages, bonuses or other amounts payable to the Grantee by
the Company, any federal, state or local taxes required by law to be withheld
with respect to such Grant.

     The Grantee understands that Vested Shares will not be released to the
Grantee until such time as the Company has received any taxes that the Company
is required to withhold in respect of the Vested Shares.

 

 

     The Grantee, intending to be legally bound hereby, has executed this
Acceptance of Grant as of the date set forth below.

		
	Dated: 	

	 	 	 
	

	 	GRANTEE:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00073-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00073-of-00352.parquet"}]]