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This election will be to treat the shares of Common Stock as if they were not restricted securities (for U.K. tax purposes only). 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By participating in the Plan, the Participant further acknowledges and agrees, further to the consent to the transfer of personal data contained in Section 14 of the Agreement, that personal data may be transmitted to third parties outside of the European Economic Area in the course of the implementation, administration and management of the Plan by agents of the Company or any Affiliate wherever located.", "hash": "2e8482d9f5f7550d28c733f17c455f4e", "id": 2}, {"snippet_links": [{"key": "by-the-company", "type": "clause", "offset": [47, 61]}, {"key": "participant-shall", "type": "definition", "offset": [63, 80]}, {"key": "immediately-upon-the", "type": "clause", "offset": [81, 101]}, {"key": "exercise-of-the-option", "type": "clause", "offset": [102, 124]}, {"key": "joint-election", "type": "definition", "offset": [151, 165]}, {"key": "pursuant-to-section", "type": "definition", "offset": [183, 202]}, {"key": "income-tax", "type": "clause", "offset": [219, 229]}, {"key": "act-2003", 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This election will be to treat the shares of Stock acquired pursuant to the vesting of the Stock Option as if such shares were not restricted securities (for U.K. tax purposes only) despite the Company's clawback policy under the U.S. \u2587\u2587\u2587\u2587-\u2587\u2587\u2587\u2587\u2587 Act of 2010. If the Optionee does not enter into the 431 Election if and when requested by the Company, the Optionee will not be entitled to vest in the Stock Option and no shares of Stock will be issued to the Optionee, without any liability to the Company, the Service Recipient or any Subsidiary or affiliate.", "hash": "e88e633b06be83044ae3551ba78d45a9", "id": 6}, {"snippet_links": [{"key": "pursuant-to-this-agreement", "type": "clause", "offset": [78, 104]}, {"key": "to-receive", "type": "definition", "offset": [155, 165]}, {"key": "in-accordance-with", "type": "clause", "offset": [177, 195]}, {"key": "terms-of-the-plan", "type": "clause", "offset": [200, 217]}, {"key": "valid-election", "type": "definition", "offset": [289, 303]}, {"key": "the-united-kingdom", "type": "clause", "offset": [317, 335]}, {"key": "pursuant-to-section", "type": "definition", "offset": [364, 383]}, {"key": "income-tax", "type": "clause", "offset": [388, 398]}, {"key": "act-2003", "type": "clause", "offset": [423, 431]}, {"key": "by-the-board", "type": "clause", "offset": [465, 477]}, {"key": "the-committee", "type": "clause", "offset": [487, 500]}], "size": 4, "samples": [{"hash": "5lXWphEcsAl", "uri": "/contracts/5lXWphEcsAl#section-431-election", "label": "Restricted Stock Unit Award Agreement (Mativ Holdings, Inc.)", "score": 35.35181427, "published": true}, {"hash": "4SBGHPQpo3n", "uri": "/contracts/4SBGHPQpo3n#section-431-election", "label": "Performance Share Unit Award Agreement (Mativ Holdings, Inc.)", "score": 35.35181427, "published": true}, {"hash": "6EfP0nSmVIQ", "uri": "/contracts/6EfP0nSmVIQ#section-431-election", "label": "Restricted Stock Unit Award Agreement (Mativ Holdings, Inc.)", "score": 34.3524971008, "published": true}], "snippet": "In circumstances where any Stock is to be acquired by a United Kingdom Holder pursuant to this Agreement, such United Kingdom Holder shall not be entitled to receive such Stock in accordance with the terms of the Plan or this Agreement unless: (i) such United Kingdom Holder enters into a valid election jointly with the United Kingdom Holder's relevant employer, pursuant to Section 431 Income Tax (Earnings and Pensions) Act 2003 (\u201cITEPA\u201d) in the form prescribed by the Board; or (ii) the Committee agrees otherwise.", "hash": "d0b517ebe57f7b5ec19cf4f35abba53b", "id": 5}, {"snippet_links": [{"key": "grantee-agrees", "type": "clause", "offset": [4, 18]}, {"key": "by-the-company", "type": "clause", "offset": [47, 61]}, {"key": "settlement-of-the-award", "type": "clause", "offset": [102, 125]}, {"key": "joint-election", "type": "definition", "offset": [152, 166]}, {"key": "pursuant-to-section", "type": "definition", "offset": [184, 203]}, {"key": "income-tax", "type": "clause", "offset": [220, 230]}, {"key": "tax-purposes", "type": "clause", "offset": [332, 344]}, {"key": "value-of-the-share", "type": "definition", "offset": [357, 375]}, {"key": "restricted-securities", "type": "definition", "offset": [430, 451]}, {"key": "section-423", "type": "definition", "offset": [467, 478]}], "size": 5, "samples": [{"hash": "cvm4QmNsHka", "uri": "/contracts/cvm4QmNsHka#section-431-election", "label": "Restricted Stock Unit Agreement (AMCI Acquisition Corp. 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The Grantee shall also make such arrangements as the Board may require for the satisfaction of any Federal, state, or local taxes (domestic or foreign) of any kind (including, but not limited to, any United Kingdom income tax or National Insurance contributions and including (to the extent legally permissible) with any employer\u2019s (secondary) National Insurance contributions) with respect to such acquisition of Shares as may arise upon the making of such Section 431 Election.", "hash": "81649c4ddc824cf97a172083713fc286", "id": 8}, {"snippet_links": [{"key": "a-director", "type": "clause", "offset": [29, 39]}, {"key": "executive-officer-of-the-company", "type": "definition", "offset": [43, 75]}, {"key": "meaning-of", "type": "clause", "offset": [88, 98]}, {"key": "the-exchange-act", "type": "definition", "offset": [116, 132]}, {"key": "vesting-of-the-restricted-stock-units", "type": "clause", "offset": [143, 180]}, {"key": "participation-in-the-plan", "type": "clause", "offset": [225, 250]}, {"key": "settlement-of-the-restricted-stock-units", "type": "clause", "offset": [259, 299]}, {"key": "service-recipient", "type": "definition", "offset": [347, 364]}, {"key": "an-election", "type": "clause", "offset": [366, 377]}, {"key": "income-tax", "type": "clause", "offset": [409, 419]}, {"key": "act-2003", "type": "clause", "offset": [444, 452]}, {"key": "itepa-2003", "type": "definition", "offset": [455, 465]}, {"key": "in-respect-of", "type": "definition", "offset": [468, 481]}, {"key": "tax-charge", "type": "definition", "offset": [496, 506]}, {"key": "the-acquisition", "type": "clause", "offset": [510, 525]}, {"key": "restricted-securities", "type": "definition", "offset": [530, 551]}, {"key": "shares-of-stock", "type": "definition", "offset": [661, 676]}, {"key": "pursuant-to-the", "type": "clause", "offset": [686, 701]}, {"key": "tax-purposes", "type": "clause", "offset": [799, 811]}, {"key": "clawback-policy", "type": "definition", "offset": [840, 855]}, {"key": "the-us", "type": "clause", "offset": [862, 869]}, {"key": "act-of-2010", "type": "definition", "offset": [882, 893]}, {"key": "by-the-company", "type": "clause", "offset": [969, 983]}, {"key": "to-the-grantee", "type": "definition", "offset": [1094, 1108]}, {"key": "liability-to-the-company", "type": "clause", "offset": [1122, 1146]}, {"key": "subsidiary-or-affiliate", "type": "clause", "offset": [1177, 1200]}], "size": 4, "samples": [{"hash": "lSiVnWjGRss", "uri": "/contracts/lSiVnWjGRss#section-431-election", "label": "Restricted Stock Unit Award Agreement (Blueprint Medicines Corp)", "score": 32.1252555847, "published": true}, {"hash": "8N4SmYtjXWZ", "uri": "/contracts/8N4SmYtjXWZ#section-431-election", "label": "Restricted Stock Unit Award Agreement (Blueprint Medicines Corp)", "score": 32.1252555847, "published": true}], "snippet": "If the Grantee is or becomes a director or executive officer of the Company (within the meaning of Section 13(k) of the Exchange Act) prior to vesting of the Restricted Stock Units, the Company may require, as a condition of participation in the Plan and the settlement of the Restricted Stock Units, that the Grantee enter into, jointly with the Service Recipient, an election within Section 431 of the U.K. Income Tax (Earnings and Pensions) Act 2003 (\u201cITEPA 2003\u201d) in respect of computing any tax charge on the acquisition of \u201crestricted securities\u201d (as defined in Sections 423 and 424 of ITEPA 2003) (the \u201c431 Election\u201d). This election will be to treat the shares of Stock acquired pursuant to the vesting of the Restricted Stock Units as if such shares were not restricted securities (for U.K. tax purposes only) despite the Company's clawback policy under the U.S. \u2587\u2587\u2587\u2587-\u2587\u2587\u2587\u2587\u2587 Act of 2010. If the Grantee does not enter into the 431 Election if and when requested by the Company, the Grantee will not be entitled to vest in the Restricted Stock Units and no shares of Stock will be issued to the Grantee, without any liability to the Company, the Service Recipient or any Subsidiary or affiliate.", "hash": "bc682275e932eaf16fc295cf64efbb70", "id": 7}, {"snippet_links": [{"key": "exercise-of-an-option", "type": "clause", "offset": [4, 25]}, {"key": "unvested-shares", "type": "definition", "offset": [30, 45]}, {"key": "the-purchaser", "type": "clause", "offset": [60, 73]}, {"key": "entering-into", "type": "clause", "offset": [74, 87]}, {"key": "purchase-of-the", "type": "clause", "offset": [150, 165]}, {"key": "exercised-shares", "type": "definition", "offset": [166, 182]}, {"key": "pursuant-to-section", "type": "definition", "offset": [193, 212]}, {"key": "income-tax", "type": "clause", "offset": [224, 234]}, {"key": "price-of-the", "type": "clause", "offset": [327, 339]}, {"key": "date-of-purchase", "type": "clause", "offset": [405, 421]}, {"key": "in-the-case", "type": "clause", "offset": [423, 434]}, {"key": "nonstatutory-stock-option", "type": "definition", "offset": [440, 465]}, {"key": "unapproved-option", "type": "definition", "offset": [470, 487]}, {"key": "recognition-of", "type": "clause", "offset": [512, 526]}, {"key": "taxable-income", "type": "definition", "offset": [527, 541]}, {"key": "date-of-exercise", "type": "definition", "offset": [566, 582]}, {"key": "the-excess", "type": "clause", "offset": [596, 606]}, {"key": "fair-market-value-of-the", "type": "clause", "offset": [636, 660]}, {"key": "at-the-time", "type": "clause", "offset": [679, 690]}, {"key": "the-option", "type": "clause", "offset": [691, 701]}, {"key": "purchase-price-for", "type": "clause", "offset": [724, 742]}, {"key": "an-election", "type": "clause", "offset": [777, 788]}, {"key": "by-purchaser", "type": "clause", "offset": [837, 849]}, {"key": "repurchase-option", "type": "definition", "offset": [894, 911]}, {"key": "election-under", "type": "clause", "offset": [930, 944]}, {"key": "attached-hereto-as-exhibit", "type": "definition", "offset": [960, 986]}, {"key": "agrees-to", "type": "clause", "offset": [1009, 1018]}, {"key": "complete-and-return", "type": "clause", "offset": [1019, 1038]}, {"key": "the-election", "type": "clause", "offset": [1039, 1051]}, {"key": "to-the-company", "type": "definition", "offset": [1052, 1066]}], "size": 3, "samples": [{"hash": "dK3IxSId9XE", "uri": "/contracts/dK3IxSId9XE#section-431-election", "label": "Stock Option Agreement (Mavenir Systems Inc)", "score": 22.7563304901, "published": true}, {"hash": "clitQ4EBanm", "uri": "/contracts/clitQ4EBanm#section-431-election", "label": "Stock Option Agreement (Mavenir Systems Inc)", "score": 21.967830658, "published": true}], "snippet": "The exercise of an Option for Unvested Shares is subject to the Purchaser entering into a Section 431 election (the \u201cElection\u201d) within 14 days of the purchase of the exercised Shares, electing pursuant to Section 431 of the Income Tax (Earnings & \u2587\u2587\u2587\u2587\u2587\u2587\u2587\u2587) \u2587\u2587\u2587 \u2587\u2587\u2587\u2587 to be taxed currently on any difference between the purchase price of the exercised Shares and their unrestricted Fair Market Value on the date of purchase. In the case of a Nonstatutory Stock Option (UK Unapproved Option), this will result in a recognition of taxable income to the Purchaser on the date of exercise, measured by the excess, if any, of the unrestricted Fair Market Value of the exercised Shares, at the time the Option is exercised over the purchase price for the exercised Shares. Absent such an Election, taxable income will be measured and recognized by Purchaser at the time or times on which the Company\u2019s Repurchase Option lapses. A form of Election under Section 431 is attached hereto as Exhibit C-5. Purchaser hereby agrees to complete and return the election to the Company.", "hash": "1f77ee99375898c3ecbf41f27690ee4a", "id": 9}, {"snippet_links": [{"key": "participation-in-the-plan", "type": "clause", "offset": [18, 43]}, {"key": "exercise-of-the-option", "type": "clause", "offset": [52, 74]}, {"key": "the-employer", "type": "definition", "offset": [111, 123]}, {"key": "joint-election", "type": "definition", "offset": [154, 168]}, {"key": "income-tax", "type": "clause", "offset": [200, 210]}, {"key": "itepa-2003", "type": "definition", "offset": [246, 256]}, {"key": "in-respect-of", "type": "definition", "offset": [259, 272]}, {"key": "tax-charge", "type": "definition", "offset": [287, 297]}, {"key": "the-acquisition", "type": "clause", "offset": [301, 316]}, {"key": "restricted-securities", "type": "definition", "offset": [321, 342]}, {"key": "at-any-time", "type": "clause", "offset": [444, 455]}, {"key": "shares-acquired", "type": "clause", "offset": [492, 507]}, {"key": "pursuant-to-the", "type": "clause", "offset": [508, 523]}, {"key": "tax-purposes", "type": "clause", "offset": [606, 618]}, {"key": "form-of-election", "type": "definition", "offset": [655, 671]}, {"key": "execution-of-the-agreement", "type": "clause", "offset": [693, 719]}, {"key": "by-the-corporation", "type": "clause", "offset": [769, 787]}, {"key": "election-form", "type": "clause", "offset": [794, 807]}], "size": 3, "samples": [{"hash": "3BlddqVloqr", "uri": "/contracts/3BlddqVloqr#section-431-election", "label": "Stock Option Agreement (Yahoo Inc)", "score": 21.6926765442, "published": true}], "snippet": "As a condition of participation in the Plan and the exercise of the option, Optionee agrees that, jointly with the Employer, he or she shall enter into a joint election within Section 431 of the U.K. Income Tax (Earnings and Pensions) \u2587\u2587\u2587 \u2587\u2587\u2587\u2587 (\u201cITEPA 2003\u201d) in respect of computing any tax charge on the acquisition of \u201cRestricted Securities\u201d (as defined in Sections 423 and 424 of ITEPA 2003), and that Optionee will not revoke such election at any time. This election will be to treat the Shares acquired pursuant to the exercise of the option as if such Shares were not Restricted Securities (for U.K. tax purposes only). Optionee must enter into the form of election, concurrent with the execution of the Agreement, or at such subsequent time as may be designated by the Corporation. (431 Election Form on the next page)", "hash": "85a371cffbdfb0e6a5ee40685b397c00", "id": 10}], "next_curs": "Cl0SV2oVc35sYXdpbnNpZGVyY29udHJhY3RzcjkLEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2Ih1zZWN0aW9uLTQzMS1lbGVjdGlvbiMwMDAwMDAwYQyiAQJlbhgAIAA=", "clause": {"children": [], "parents": [["tax-information", "Tax Information"], ["tax-obligations", "Tax Obligations"], ["language-consent", "Language Consent"], ["acknowledgements", "Acknowledgements"], ["binding-effect", "Binding Effect"]], "size": 95, "title": "Section 431 Election", "id": "section-431-election", "related": [["section-336e-election", "Section 336(e) Election", "Section 336(e) Election"], ["section-83b-election", "Section 83(b) Election", "Section 83(b) Election"], ["section-338-election", "Section 338 Election", "Section 338 Election"], ["section-754-election", "Section 754 Election", "Section 754 Election"], ["83b-election", "83(b) Election", "83(b) Election"]], "related_snippets": [], "updated": "2026-04-15T04:23:14+00:00", "also_ask": ["What negotiation leverage does a Section 431 Election provide to each party?", "What are the essential drafting elements to ensure a valid and effective Section 431 Election?", "What are the principal risks or common pitfalls that could invalidate a Section 431 Election?", "How does a Section 431 Election compare to alternative share option tax elections?", "What are the main factors courts consider when determining the enforceability of a Section 431 Election?"], "drafting_tip": "Specify the timing and procedure for making the Section 431 election to ensure compliance with tax regulations; clarify the parties' responsibilities to prevent disputes; reference relevant legislation to enhance enforceability.", "explanation": "A Section 431 Election is a provision that allows employees and employers to jointly elect for certain tax rules to apply to shares acquired by employees, typically under an employee share scheme. By making this election, any growth in the value of the shares after acquisition is taxed as capital gains rather than as income, which can result in more favorable tax treatment. This clause is primarily used to ensure that employees are not subject to income tax on future increases in share value, thereby providing tax clarity and potentially reducing the overall tax burden for employees participating in share incentive plans."}, "json": true, "cursor": ""}}