Participant understands that Section 83(a) of the Internal Revenue Code of 1986, as amended (the “Code”), taxes as ordinary compensation income the fair market value of the Restricted Stock on the date as of which Participant’s right to retain the Restricted Stock vests. Thus, the shares of Restricted Stock will vest and be taxable in increments on [ ]. Accelerated vesting of the shares of Restricted Stock will also accelerate the date of taxation. Participant understands that Participant may elect to be taxed on the fair market value of some or all of the shares of Restricted Stock at the time such shares are transferred to Participant, rather than at those times when Participant’s right to retain the Restricted Stock vests, by filing an election under Section 83(b) of the Code (a “Section 83(b) Election”) with the Internal Revenue Service within 30 days from the date of the transfer of the Restricted Stock to Participant. Participant understands that failure to file such an election in a timely manner results in the inability to file such election. Participant further understands that an additional copy of such election form should be filed with Participant’s federal income tax return for the calendar year to which such election applies. Participant acknowledges and agrees that the foregoing is only a summary of the effects of United States federal income taxation with respect to the Restricted Stock and does not purport to be complete. Participant further acknowledges and agrees that the Corporation has directed Participant to seek independent professional advice regarding the tax consequences of receipt of the Restricted Stock under federal, state and local law. Participant acknowledges and agrees that if the Participant decides to file a Section 83(b) Election it is Participant’s sole responsibility, and not the Corporation’s or its affiliate’s, to file a timely election, even if Participant requests the Corporation, its affiliate or its representatives to make the filing on Participant’s behalf.
Participant understands that the work of Energistics is a collaborative process in which Participants and staff may participate jointly to develop Energistics Work Items in the context of Energistics Activities. In order for Energistics Activities to be effective for the development of Energistics Work Items, all participants must grant Energistics certain limited rights in their respective Contributions, which Energistics may then sublicense to all other Energistics Participants.
