Common use of Code Section 83(b) Election Clause in Contracts

Code Section 83(b) Election. Holder represents and warrants that Holder understands the Federal, state and local income tax consequences of the granting of this Restricted Stock. Holder may voluntarily elect to be taxed at the time the Restricted Stock is acquired to the extent that the fair market value of the Restricted Stock exceeds the amount of consideration paid by Holder (if any) for such Restricted Stock at that time rather than when such Restricted Stock ceases to be subject to such forfeiture restrictions, by filing an election under Section 83(b) of the Code with the Internal Revenue Service within thirty (30) days after the issuance of the Restricted Stock. A form for making this election is attached as Exhibit B hereto. Failure to make this filing within the thirty (30) day period may result in the recognition of ordinary income by H▇▇▇▇▇ as the forfeiture restrictions lapse. H▇▇▇▇▇ ACKNOWLEDGES THAT IT IS HOLDER’S SOLE RESPONSIBILITY, AND NOT THE COMPANY’S, TO FILE A TIMELY ELECTION UNDER CODE SECTION 83(b), EVEN IF HOLDER REQUESTS THE COMPANY OR ITS REPRESENTATIVES TO MAKE THIS FILING ON HOLDER S BEHALF. MOREOVER, H▇▇▇▇▇ IS RELYING SOLELY ON HOLDER’S OWN ADVISORS WITH RESPECT TO THE DECISION AS TO WHETHER OR NOT TO FILE A CODE SECTION 83(b) ELECTION.