Form 8-K - Current report
February 24 2025 - 10:15AM
Edgar (US Regulatory)
Gentherm Inc false 0000903129 0000903129 2025-02-24 2025-02-24
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 24, 2025
GENTHERM INCORPORATED
(Exact name of registrant as specified in its charter)
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Michigan |
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0-21810 |
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95-4318554 |
(State or other jurisdiction of incorporation) |
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(Commission File Number) |
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(IRS Employer Identification No.) |
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28875 Cabot Drive, Novi, MI |
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48377 |
(Address of principal executive offices) |
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(Zip Code) |
Registrant’s telephone number, including area code: (248) 348-9735
Former name or former address, if changed since last report: N/A
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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Title of each class |
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Trading Symbol(s) |
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Name of each exchange on which registered |
Common Stock, no par value |
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THRM |
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The Nasdaq Global Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 5.02 |
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. |
In connection with the previously disclosed inducement award of restricted stock units (“RSUs”) to be granted by Gentherm Incorporated (the “Company”) on February 24, 2025 to William Presley, President and Chief Executive Officer, and Jonathan Douyard, Executive Vice President, Chief Financial Officer and Treasurer, respectively, of Gentherm Incorporated (the “Company”), the Company will enter into a Sign-on Inducement Restricted Stock Unit Award Agreement with each of Messrs. Presley and Douyard. Such award agreement has substantially the same terms and conditions of the form of RSU award agreement currently used for annual grants to executive officers of the Company. A copy of the Form of Sign-On Inducement Restricted Stock Unit Award Agreement is attached hereto as Exhibit 10 and is incorporated herein by reference.
Item 9.01 |
Financial Statements and Exhibits. |
(d) Exhibits
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Indicates management contract or compensatory plan or arrangement. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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GENTHERM INCORPORATED |
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By: |
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/s/ Wayne Kauffman |
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Wayne Kauffman |
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Senior Vice President, General Counsel and Secretary |
Date: February 24, 2025
Exhibit 10
GENTHERM INCORPORATED
SIGN-ON INDUCEMENT RESTRICTED STOCK UNIT AWARD AGREEMENT
Gentherm Incorporated, a Michigan corporation (the
Corporation), hereby grants to the individual listed below (the Grantee), a sign-on award of Restricted Stock Units (RSUs) as
described herein, subject to the terms and conditions of this Sign-on Inducement Restricted Stock Unit Award Agreement (Agreement) to induce the Grantee to be employed by the
Corporation. This Agreement shall be construed as if such RSUs had been granted under the Gentherm Incorporated 2023 Equity Incentive Plan, as amended from time to time (the Plan), in accordance and consistent with, and
subject to, the provisions of the Plan, the terms of which are incorporated herein by reference, provided that such RSUs will not be deemed to be issued under such Plan. Except as expressly set forth herein, in the event of a conflict between the
terms and conditions of the Plan and the terms and conditions of this Agreement, the terms and conditions of this Agreement shall prevail.
Unless
otherwise defined in this Agreement, the terms used in this Agreement have the same meaning as defined in the Plan.
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Grantee: |
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Grant Date: |
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Number of RSUs in Award: |
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2. |
GRANT OF RSU AWARD. The Corporation hereby grants to the Grantee, as of the Grant Date, the number of
RSUs set forth in the table above. By clicking the ACCEPT button, the Grantee agrees to the following: This electronic contract contains my electronic signature, which I have executed with the intent to sign this
Agreement. |
3. |
VESTING. Except as otherwise provided in this Agreement, the RSUs shall become vested in the following
amounts on the following dates; provided, however, that the portion of the RSUs scheduled to become vested on any such vesting date shall vest on such vesting date only if the Grantee remains continuously employed on a full-time basis with the
Corporation or its Subsidiaries from the Grant Date until the applicable Normal Vesting Date: |
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Anniversary of Grant Date
(each, a Normal Vesting Date) |
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RSUs Vested on Normal
Vesting Date |
First |
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One-third |
Second |
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One-third |
Third |
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One-third |
4. |
QUALIFYING TERMINATION PRIOR TO ANY NORMAL VESTING DATE. Notwithstanding Section 3 hereof but
subject to the notice and release requirements set forth below in this Section 4, if there is a (i) termination of employment due to the Grantees death or Disability or (ii) an event of termination specified in Grantees
offer letter with the Corporation that specifies the vesting of the RSUs therefrom, then any unvested RSUs shall become vested as of the date of such termination of employment. The vesting of unvested RSUs under this Section 4 is conditioned
upon the Grantee (or, in the case of the Grantees death, an executor or administrator of the Grantees estate) signing and delivering to the Corporation, and there becoming irrevocable, within 30 days after the date of such employment
termination, a general release of claims (in form and substance reasonably acceptable to the Corporation) by which the Grantee releases the Corporation and its |
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affiliated entities and individuals from any claim arising from the Grantees employment by, and termination of employment with, the Corporation and its Subsidiaries, in consideration for
the receipt and vesting of the RSUs. Any RSUs that would have otherwise vested under this Section 4 shall be forfeited if the general release does not become effective and irrevocable on or before the 30th day following the Grantees
termination of employment. |
5. |
CHANGE IN CONTROL. Notwithstanding Section 3 hereof but subject to the notice and release
requirements set forth below in this Section 5, if there is a Change in Control prior to any Normal Vesting Date, and if within three months prior to or 12 months after the Change in Control, the Grantees employment is terminated by the
Corporation or a Subsidiary (or a successor thereof) without Cause or by the Grantee for Good Reason (as defined below), any unvested RSUs at the time of such termination of employment shall become vested upon such termination of employment. The
vesting of unvested RSUs under this Section 5 is conditioned upon the Grantee signing and delivering to the Corporation (or a successor thereof), and there becoming irrevocable, within 30 days after the date of such employment termination, a
general release of claims (in form and substance reasonably acceptable to the Corporation or its successor thereof) by which the Grantee releases the Corporation and its affiliated entities and individuals (including any successor thereof) from any
claim arising from the Grantees employment by, and termination of employment with, the Corporation and its Subsidiaries (including any successor thereof), in consideration for the receipt and vesting of the RSUs. Any RSUs that would have
otherwise vested under this Section 5 shall be forfeited if the general release does not become effective and irrevocable on or before the 30th day following the Grantees termination of employment. |
Good Reason means in respect of the Corporation and the Subsidiaries and without the Grantees consent: (i) the
occurrence of a material diminution in the Grantees authority, duties, or responsibilities (other than temporarily while the Grantee is physically or mentally incapacitated or as required by applicable law); (ii) a material adverse change in
the reporting structure applicable to the Grantee, provided that a change in Grantees hybrid working arrangement shall not constitute a relocation for purposes of this definition; (iii) a relocation of the Grantees principal place
of employment by more than 50 miles; or (iv) a material reduction in the Grantees aggregate base salary and target bonus (other than a general reduction that affects all similarly situated executives in substantially the same
proportions); provided, however, that the Grantee shall be considered to have terminated employment for Good Reason only if (A) the Grantee provides notice to the Corporation of the event or condition meeting the foregoing definition of Good
Reason within 30 days after the initial occurrence of such event or condition, (B) the Corporation or the applicable Subsidiary fails to correct such event or condition within 30 days of receiving notice thereof from the Grantee, and
(C) the Grantee terminates employment with the Corporation and the Subsidiaries within 30 days after the expiration of such correction period. Notwithstanding the foregoing, if the Grantee and the Corporation or any Subsidiary have entered into
an employment, offer letter, retention, change in control, severance or other similar agreement that specifically defines Good Reason, then with respect to the Grantee, Good Reason shall have the meaning defined in such
agreement.
6. |
FORFEITURE. Upon the Grantees termination of employment with the Corporation and its Subsidiaries
for any reason prior to any Normal Vesting Date, any RSUs that do not become vested upon such employment termination in accordance with the terms of this Agreement (including Sections 4 and 5 hereof) shall be immediately canceled and forfeited for
no consideration as of the Grantees termination of employment. Any RSUs that are outstanding but do not become vested on the third and final Normal Vesting Date in accordance with the terms of this Agreement shall be cancelled and forfeited
for no consideration as of such date. Notwithstanding anything to the contrary contained herein, the Committee may, in its Discretion, accelerate the vesting of all or a portion of the RSUs subject to this Award as of or prior to any cancellation or
forfeiture thereof. |
7. |
SETTLEMENT OF RSUS. Subject to the withholding tax provisions of Section 11 hereof and
Section 15(h) of the Plan, within 45 days after the date upon which an RSU becomes vested in accordance with the terms of this Agreement, the Corporation shall issue or transfer to the Grantee stock certificates or, if applicable, book-entry
registration, one share of Common Stock per each vested RSU; provided, however, if RSUs vest in accordance with Section 5 hereof, the Corporation (or a successor thereto) shall issue or transfer to the Grantee such shares of Common Stock or
common stock of the successor having approximately equivalent value (and references herein to Common Stock issued on vesting shall include such successor common stock, if applicable), or the cash equivalent of such shares of Common Stock or common
stock if neither security is listed on a U.S. national securities exchange (including Nasdaq or the New York Stock Exchange). |
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8. |
RIGHTS AS SHAREHOLDER. Until and if shares of Common Stock are issued in settlement of vested RSUs, the
Grantee shall not have any rights of a shareholder (including voting and dividend rights) in respect of the Common Stock underlying the RSUs; provided, however, the Committee, in its sole Discretion, shall pay unvested RSUs with dividend or
distribution equivalents equal to the amount of dividends and distributions, if any, that are paid on that number of shares with respect to the RSUs granted hereunder, in accordance with Section 15(g)(iv) of the Plan and any other conditions,
limitations and other restrictions determined by the Committee. |
9. |
ADJUSTMENTS. In the event of any stock dividend, stock split, recapitalization, merger, consolidation,
split up, spin-off, combinations, exchange of shares or reorganization of or by the Corporation affecting this Award, the rights of the Grantee will be adjusted as provided in Section 5(e) of the Plan.
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10. |
NON-TRANSFERABILITY OF AWARD. Without the express written
consent of the Committee, which may be withheld for any reason in its sole Discretion, neither the RSUs nor any interest in the RSUs may be assignable, alienable, saleable, pledged, hypothecated, encumbered or transferable by the Grantee,
except for a transfer by will or by the laws of descent and distribution as a result of the death of the Grantee; provided that, unless approved by shareholders, in no event shall this Award be transferable for consideration. The terms of this
Agreement shall be binding upon the Grantees executors, administrators, heirs, successors and assigns. Any attempt to transfer, assign, pledge, hypothecate or borrow against the RSUs in violation of this Section 10 in any manner shall be
null and void and without legal force or effect. |
11. |
WITHHOLDING OBLIGATIONS. The Grantee shall be responsible for all taxes required by law to be withheld
by the Corporation or a Subsidiary in respect of the grant, vesting or settlement of the RSUs, and the Corporation may make any arrangements it deems appropriate to ensure payment of any such tax by the Grantee. The Committee may, in its Discretion,
permit the Grantee to satisfy such withholding obligations in accordance with Section 18(a) of the Plan. |
12. |
AMENDMENT. The Committee shall have the right, in its Discretion, to modify or amend the Agreement from
time to time in accordance with and as provided in the Plan. This Agreement may also be modified or amended by a writing signed by both the Corporation and the Grantee. The Corporation shall give written notice to the Grantee of any such
modification or amendment of this Agreement as soon as practicable after the adoption thereof. |
13. |
RIGHTS OF GRANTEE; REGULATORY REQUIREMENTS. Without limiting the generality of any other provision of
this Agreement, Sections 13 and 14 of the Plan pertaining to the limitations on the Grantees rights and certain regulatory requirements are hereby explicitly incorporated into this Agreement. |
14. |
NOTICES. Notices hereunder shall be mailed or delivered to the Corporation at its principal place of
business and shall be mailed or delivered to the Grantee at the address on file with the Corporation or, in either case, at such other address as one party may subsequently furnish to the other party in writing. |
15. |
GOVERNING LAW. This Agreement shall be legally binding and shall be governed, construed, and
administered in accordance with and governed by the laws of the State of Michigan (regardless of the laws that might otherwise govern under applicable principles of choice of law or conflicts of laws of such jurisdiction or any other jurisdiction
that would cause the application of the laws of any jurisdiction other than the State of Michigan). |
16. |
DATA PRIVACY NOTICE. The Grantee hereby acknowledges that the collection, use and transfer, in
electronic or other form, of the Grantees personal data as described in this Agreement and any other RSU grant materials by the Corporation (and its Subsidiaries) is necessary for the purpose of implementing, administering and managing the
Grantees participation in the Plan. The Grantee authorizes, agrees and unambiguously consents to the transmission by the Corporation (and its Subsidiaries) of any personal data information related to this Award for legitimate business
purposes. This authorization and consent is freely given by the Grantee. |
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The Grantee understands that the Corporation and its Subsidiaries may hold certain personal
information about the Grantee, including, but not limited to, the Grantees name, home address and telephone number, email address, date of birth, social insurance, passport or other identification number (e.g., resident registration number),
salary, nationality, job title, details of all RSUs or any other entitlement to shares of Common Stock awarded, canceled, exercised, vested, unvested or outstanding in the Grantees favor (Data), for the purpose of
administering and managing the RSUs under this Award.
The Grantee understands that Data will be transferred to Merrill Lynch, Pierce,
Fenner & Smith Inc., and its related companies (Merrill Lynch) or any stock plan service provider as may be selected by the Corporation in the future, which is assisting the Corporation with the administering and
managing the RSUs under this Award. The Grantee understands that the recipients of the Data may be located in the United States or elsewhere, and that the recipients country of operation (e.g., the United States) may have different data
privacy laws and protections than the Grantees country. The Grantee understands that if he or she resides outside the United States, he or she may request a list with the names and addresses of any potential recipients of the Data by
contacting his or her local human resources representative. The Corporation, Merrill Lynch, any other stock plan service provider selected by the Corporation and any other possible recipients that may assist the Corporation (presently or in the
future) with administering and managing the RSUs under this Award and may receive, possess, use, retain and transfer the Data, in electronic or other form, for the sole purpose of administering and managing the RSUs under this Award. The Grantee
understands that Data will be held only as long as is necessary to administer and manage the RSUs under this Award plus any required period thereafter for purposes of complying with data retention policies and procedures. The Grantee understands
that based on where s/he resides, s/he may have additional rights with respect to personal data collected, used or transferred in connection with this Agreement or any other RSU grant materials by the Corporation (and its Subsidiaries), and the
Grantee may contact in writing his or her local human resources representative.
17. |
BINDING AGREEMENT; ASSIGNMENT. This Agreement shall inure to the benefit of, be binding upon, and be
enforceable by the Corporation and its successors and assigns. The Grantee shall not assign (except in accordance with Section 10 hereof) any part of this Agreement without the prior express written consent of the Corporation.
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18. |
HEADINGS. The titles and headings of the various sections of this Agreement have been inserted for
convenience of reference only and shall not be deemed to be a part of this Agreement. |
19. |
COUNTERPARTS. This Agreement may be executed in one or more counterparts, each of which shall be deemed
to be an original, but all of which shall constitute one and the same instrument. |
20. |
ACQUIRED RIGHTS. The Grantee acknowledges and agrees that: (a) this Award of the RSUs made under
this Agreement is completely independent of any other award or grant and is made in the Discretion of the Corporation; (b) no past grants or awards (including, without limitation, the RSUs awarded hereunder) give the Grantee any right to any
grants or awards in the future whatsoever; and (c) none of the benefits granted under this Agreement are part of the Grantees ordinary salary or compensation, and shall not be considered as part of such salary or compensation in the event
of or for purposes of determining the amount of or entitlement to severance, redundancy or resignation or benefits under any employee benefit plan. |
21. |
RESTRICTIVE COVENANTS; COMPENSATION RECOVERY; OTHER POLICIES. By signing this Agreement, the Grantee
acknowledges and agrees that this Award or any other Award previously granted to the Grantee by the Corporation or a Subsidiary shall be subject to forfeiture as a result of the Grantees violation of any agreement with the Corporation
regarding non-competition, non-solicitation, confidentiality, inventions and/or other restrictive covenants (the Restricted Covenant
Agreements). For avoidance of doubt, compensation recovery rights to shares of Common Stock (including such shares acquired under previously granted equity awards) shall extend to the proceeds realized by the Grantee due to the sale or
other transfer of such shares. The Grantees prior execution of the Restricted Covenant Agreements was a material inducement for the Corporations grant of this Award. |
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By signing this Agreement, the Grantee also acknowledges and agrees that any Award
previously granted to the Grantee by the Corporation (under any current or prior equity plan of the Corporation or otherwise), including the RSUs subject to this Award, and any amounts or benefits arising from such Awards, including but not limited
to shares of Common Stock issued or cash paid pursuant to such Awards (including any dividends or distributions) or proceeds realized by the Grantee (on a pre-tax basis) due to the sale or other transfer of
shares of Common Stock issued pursuant to such Awards shall be subject to (i) any recoupment, clawback, equity holding, stock ownership or similar policies adopted and amended by the Corporation from time to time and (ii) recoupment,
clawback, equity holding, stock ownership or similar requirements law, regulation or listing standards applicable to the Corporation from time to time. The remedies under such policy are in addition, and are in no way limiting, to the remedies of
the recoupment provision set forth above.
22. |
CODE SECTION 409A. It is intended that this Award be exempt from or comply with Section 409A of the
Code and this Agreement shall be interpreted and administered in a manner which effectuates such intent; provided, however, that in no event shall the Corporation or any Subsidiary be liable for any additional tax, interest or penalty imposed upon
or other damage suffered by the Grantee on account of this Award being subject to but not in compliance with Section 409A of the Code. |
SIGNATURE PAGE FOLLOWS
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GENTHERM INCORPORATED |
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By: |
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Name: |
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Title: |
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Dated: |
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THE GRANTEE ACKNOWLEDGES AND AGREES THAT NOTHING IN THIS RESTRICTED STOCK UNIT AWARD AGREEMENT, NOR IN THE
CORPORATIONS 2023 EQUITY INCENTIVE PLAN, AS AMENDED, WHICH IS INCORPORATED INTO THIS AGREEMENT BY REFERENCE, CONFERS ON THE GRANTEE ANY RIGHT WITH RESPECT TO CONTINUATION AS AN EMPLOYEE OF THE CORPORATION OR ANY PARENT OR ANY SUBSIDIARY OR
AFFILIATE OF THE CORPORATION, NOR INTERFERES IN ANY WAY WITH THE GRANTEES RIGHT OR THE CORPORATIONS RIGHT TO TERMINATE THE GRANTEES EMPLOYMENT WITH THE CORPORATION OR ANY PARENT OR ANY SUBSIDIARY OR AFFILIATE OF THE CORPORATION AT
ANY TIME, WITH OR WITHOUT CAUSE AND WITH OR WITHOUT PRIOR NOTICE.
BY ACCEPTING THIS AGREEMENT, THE GRANTEE ACKNOWLEDGES RECEIPT OF A COPY OF THE
PLAN AND REPRESENTS THAT THE GRANTEE IS FAMILIAR WITH THE TERMS AND PROVISIONS OF THE PLAN. THE GRANTEE ACCEPTS THE RSUs SUBJECT TO ALL OF THE TERMS AND PROVISIONS OF THIS AGREEMENT. THE GRANTEE HAS REVIEWED THE PLAN AND THIS AGREEMENT IN THEIR
ENTIRETY. THE GRANTEE AGREES TO ACCEPT AS BINDING, CONCLUSIVE AND FINAL ALL DECISIONS OR INTERPRETATIONS OF THE COMMITTEE UPON ANY QUESTIONS ARISING UNDER THIS AGREEMENT.
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By: |
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Name: [NAME OF GRANTEE] |
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Dated: |
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