STEELCLOUD, INC. FORM OF RESTRICTED STOCK AGREEMENT
EXHIBIT 10.22
THIS RESTRICTED STOCK AGREEMENT (the “Agreement”) is made as of , by and between SteelCloud,
Inc., a Virginia corporation (the “Company”), and (the “Employee”).
The Board of Directors of the Company (the “Board”) has determined that it is in the best
interests of the Company and its shareholders to provide incentive to the Employee to remain with
the Company by making this grant of Restricted Stock in accordance with the terms of this
Agreement.
AGREEMENT
1. Award of Restricted Stock. The Board hereby grants, as of (the “Date of Grant”),
to Employee shares of the Company’s common stock, par value $0.001 per share (the “Restricted
Stock”).
2. Delivery of Restricted Stock
(a) Except as otherwise provided in Section 3 hereof, the Restricted Stock shall vest, the
restrictions on the Restricted Stock shall lapse, and the Restricted Stock shall be delivered to
the Employee at the rate of shares of Restricted Stock per year at the anniversary of the Date of
Grant, for from the Date of Grant. Until such time as delivery of the Restricted Stock is made to
the Employee, or the Employee’s right to such Stock is terminated in accordance with this
Agreement, the Company’s share transfer records shall reflect the Employee’s status as holder of
such Restricted Stock.
(b) Notwithstanding any other provisions of this Agreement, the Company’s Board of Directors
(the “Board”) shall be authorized in its discretion, based upon its review and evaluation of the
performance of the Employee and of the Company or its subsidiaries, to accelerate the lapse of any
restrictions under this Agreement upon the Restricted Stock, at such times and upon such terms and
conditions as the Board shall deem advisable.
(c) Until shares of the Restricted Stock are delivered without restrictions to the Employee in
accordance with the terms of this Agreement, the Employee hereby irrevocably appoints the Secretary
of the Company as his attorney-in-fact to execute and deliver any stock power or other instrument
which may be necessary to effectuate the transfer of the Restricted Stock (or assignment of
distributions thereon) on the books and records of the Company.
(d) The Employee shall not effect a Disposition of any shares of Restricted Stock unless,
until and to the extent the restrictions imposed upon such stock shall have lapsed in accordance
with this Agreement. Any attempt to effect a Disposition of any shares of Restricted Stock prior
to the date on which the restrictions have lapsed, shall be void ab initio. For purposes of this
Agreement, “Disposition” shall mean any sale, transfer, encumbrance, gift, donation, assignment,
pledge, hypothecation, or other disposition, whether similar or dissimilar to those previously
enumerated, whether voluntary or involuntary, and including, but not limited to, any disposition by
operation of law, by court order, by judicial process, or by foreclosure, levy or attachment.
3. Forfeiture. If, prior to the three years from the Date of Grant, the Employee’s
employment with the Company or its subsidiaries is terminated for any reason, any undelivered
shares of Restricted Stock shall be deemed to have been forfeited by the Employee. The Board shall
have the power and authority to enforce on behalf of the Company any rights of the Company under
this Agreement in the event of the Employee’s forfeiture of the shares of Restricted Stock pursuant
to this Section 3.
4. Rights with Respect to Restricted Stock.
(a) Except as otherwise provided in this Agreement, the Employee shall have, with respect to
all shares of Restricted Stock, all the rights of a shareholder of the Company, including the right
to vote the Restricted Stock and the right to receive cash dividends, if any, as may be declared on
the Restricted Stock from time to time. Any shares of Stock issued the Employee as a dividend with
respect to Restricted Stock shall have the same status, be subject to the same terms and conditions
and shall be held on behalf of the Employee by the Company, if the Restricted Stock is being so
held unless otherwise determined by the Board.
(b) In the event that the Stock, as a result of a stock split or stock dividend or combination
of shares or any other change or exchange for other securities, by reclassification, reorganization
or otherwise, is increased or decreased or changed into or exchanged for a different number or kind
of shares of stock or other securities of the Company or of another corporation, the number of
shares of the Restricted Stock shall be appropriately adjusted to reflect such change. If any such
adjustment shall result in a fractional share, such fraction shall be disregarded.
5. Taxes.
(a) If the Employee properly elects, within thirty (30) days of the date of this Agreement, to
include in gross income for federal income tax purposes an amount equal to the fair market value
(as of the date of grant) of the Restricted Stock pursuant to Section 83(b) of the Internal Revenue
Code of 1986, as amended (the “Code”), the Employee shall make arrangements satisfactory to the
Board to pay to the Company any federal, state or local income taxes required to be withheld with
respect to the Restricted Stock. If the Employee shall fail to make such tax payments as are
required, the Company shall, to the extent permitted by law, have the right to deduct from any
payment of any kind otherwise due to the Employee any federal, state or local taxes of any kind
required by law to be withheld with respect to the Restricted Stock.
(b) If the Employee does not make the election described in Subsection 5(a) above, the
Employee shall, no later than the date as of which the restrictions referred to in this Agreement
hereof shall lapse, pay to the Company, or make arrangements satisfactory to the board for payment
of, any federal, state or local taxes of any kind required by law to be withheld with respect to
the Restricted Stock, and the Company shall, to the extent permitted by law, have the right to
deduct from any payment of any kind otherwise due to Employee any federal, state, or local taxes of
any kind required by law to be withheld with respect to the Restricted Stock.
6. Delivery upon Death. If after years from the Date of Grant the Employee
dies prior to receiving the shares of Restricted Stock, such shares shall be delivered, free of any
restrictions under this Agreement, to the beneficiary or beneficiaries designated by the Employee,
or if the Employee has not so designated any beneficiary, or no designated beneficiary survives the
Employee, such shares shall be delivered to the personal representative of the Employee’s estate.
7. Amendment, Modification and Assignment. No provision of this Agreement may be
modified, waived or discharged unless such waiver, modification or discharge is agreed to in
writing signed by the Employee and the Chairman or other duly authorized member of the Board. No
waiver by either party of any breach by the other party hereto of any condition or provision of
this Agreement shall be deemed a waiver of any other conditions or provisions of this Agreement.
No agreements or representations, oral or otherwise, express or implied, with respect to the
subject matter hereof have been made by either party which are not set forth expressly in this
Agreement. This Agreement shall not be assigned by the Employee in whole or in part. The rights
and obligations created hereunder shall be binding on the Employee and his heirs and legal
representatives and on the successors and assigns of the Company.
8. Miscellaneous.
(a) No Right to Employment. The grant of the Restricted Stock shall not be construed
as giving the Employee the right to be retained in the employ of the Company.
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(b) No Limit on Other Compensation Arrangements. Nothing contained in this Agreement
shall preclude the Company from adopting or continuing in effect other or additional compensation
arrangements, and such arrangements may be either generally applicable or applicable only in
specific cases.
(c) Severability. If any provision of this Agreement is or becomes or is deemed to be
invalid, illegal or unenforceable in any jurisdiction or would disqualify this Agreement or the
Award under any applicable law, such provision shall be construed or deemed amended to conform to
applicable law (or if such provision cannot be so construed or deemed amended without materially
altering the purpose or intent of this Agreement and the Award, such provision shall be stricken
as to such jurisdiction and the remainder of this Agreement and the Award shall remain in full
force and effect).
(d) No Trust or Fund Created. Neither this Agreement nor the grant of Restricted
Stock shall create or be construed to create a trust or separate fund of any kind or a fiduciary
relationship between the Company and the Employee or any other person. To the extent that the
Employee or any other person acquires a right to receive payments from the Company pursuant to this
Agreement, such right shall be no greater than the right of any unsecured general creditor of the
Company.
(e) Governing Law. The validity, interpretation, construction and performance of this
Agreement shall be governed by the laws of the Commonwealth of Virginia.
(f) Headings. Headings are given to the Paragraphs and Subparagraphs of this
Agreement solely as a convenience to facilitate reference. Such headings shall not be deemed in
any way material or relevant to the construction or interpretation of this Agreement or any
provision thereof.
9. Complete Agreement. This Agreement and those agreements and documents expressly
referred to herein embody the complete agreement and understanding among the parties and supersede
and preempt any prior understandings, agreements or representations by or among the parties,
written or oral, which may have related to the subject matter hereof in any way.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first written
above.
| SteelCloud, Inc. |
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| Agreed and Accepted: |
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