Common use of Tax Withholding Rights Clause in Contracts

Tax Withholding Rights. Prior to an Initial Public Offering, Participant shall be permitted to satisfy applicable withholding taxes (at the statutory minimum amount required to be withheld under applicable law or regulations) with respect to the Awarded Shares by electing to have the Corporation withhold a portion of the Awarded Shares otherwise to be delivered upon becoming Vested Shares (a “Net Withholding Mechanism”). After an Initial Public Offering, Participant shall be permitted to satisfy applicable withholding taxes (at the statutory minimum amount required to be withheld under applicable law or regulations) with respect to the Awarded Shares either through a Net Withholding Mechanism or through the delivery of cash proceeds obtained pursuant to a broker-assisted sale of Vested Shares, if such a sale is then permitted under the terms of any applicable lock-up agreement and the 1933 Act. Participant shall have no rights pursuant to this Section 6(b) with respect to any Awarded Shares for which Participant makes an election under Code Section 83(b).