1
Exhibit 10.21
FINDMAIL COMMUNICATIONS, INC.
AMENDMENT TO COMMON STOCK PURCHASE AGREEMENT
This Amendment to Common Stock Purchase Agreement (the "Agreement") is
made as of December 15, 1998 to the Common Stock Purchase Agreement dated June
5, 1998 (the "Purchase Agreement") by and between FindMail Communications,
Inc., a Delaware corporation (the "Company") and Xxxxx Xxxxxx (the
"Purchaser"). Unless specifically designated otherwise, the capitalized terms
herein shall have the same meanings given them in the Purchase Agreement.
RECITAL
The Purchase Agreement provides for the sale and issuance of 1,344,321
shares of the Company's Common Stock to Purchaser, which sale took place on
June 5, 1998. The Company and the Purchaser desire to amend the Purchase
Agreement to modify the terms of the Company's repurchase option under Sections
3(a) and 3(f) of the Purchase Agreement.
AMENDMENT
In consideration of the mutual promises and covenants hereinafter set
forth, the parties hereto mutually agree as follows:
A. Section 3(a)(iii) of the Purchase Agreement shall be deleted in its
entirety and the following shall be inserted in lieu thereof:
"(iii) Subject to Section 3(a)(iv) below, the Repurchase Option shall
be in effect with respect to sixty-seven percent (67%) of the Shares and shall
lapse as to 1/36th of such Shares on each monthly anniversary of the Vesting
Commencement Date (as set forth on the signature page of this Agreement), until
all Shares are released from the Repurchase Option (provided in each case that
Purchaser's employment or consulting relationship with the Company has not been
terminated prior to the date of any such release). The remaining thirty-three
percent (33%) shall not be subject to the Repurchase Option. Fractional shares
shall be rounded to the nearest whole share. Shares as to which the Repurchase
Option has not lapsed are referred to as "Unvested Shares."
(iv) Notwithstanding the foregoing, the Repurchase Option shall immediately
lapse with respect to all remaining Unvested Shares if, in connection with or
following the completion of Merger (as defined below), Purchaser's employment
with the Company (or its successor entity) is terminated by the Company or its
successor without Cause (as defined below) or Purchaser terminates his
employment voluntarily as a result of a Constructive Termination (as defined
below).
(v) "Merger" shall mean a merger or consolidation of the Company in
connection with which greater than 50% of the voting power of the Company is
transferred, or a
2
sale of all or substantially all of the Company's assets or capital stock,
excluding a transaction for the sole purpose of changing the legal domicile of
the Company.
(vi) "Cause" for the termination of Purchaser's employment with the
Company or its successor will exist at any time one or more of the following
events: (A) Purchaser's willful misconduct in performance of the duties of his
position with the Company or its successor, including Purchaser's refusal to
comply in any material respect with the legal directives of the Company's Chief
Executive Officer or the Board of Directors so long as such directives are not
inconsistent with the Purchaser's position and duties, and such refusal to
comply is not remedied within 10 working days after written notice from the
Company or its successor, which written notice shall state that failure to
remedy such conduct may result in termination for Cause; or (B) conduct that
materially discredits the Company or its successor or is materially detrimental
to the reputation of the Company or its successor, including conviction of a
felony involving moral turpitude."
(vii) "Constructive Termination" shall be deemed to occur if there is
(A) an adverse change in the Purchaser's position or operating responsibilities
with the Company or its successor causing such position to be of materially
reduced stature or responsibility (it being understood that Purchaser's
operating responsibilities, title and reporting relationships may be changed in
connection with integration of the Company's operations with those of an
acquiror following a Merger); or (B) a reduction of the Purchaser's
compensation, taken as a whole."
B. Section 3(f) of the Purchase Agreement shall be deleted in its
entirety and the following shall be inserted in lieu thereof:
"(f) Termination of Rights. The right of first refusal granted the
Company by Section 3(b) above and the option to repurchase the Shares in the
event of an involuntarily transfer granted the Company by Section 3(c) above
shall terminate upon the first sale of Common Stock of the Company pursuant to
a registration statement filed with and declared effective by the Securities
and Exchange Commission under the Securities Act. Upon termination of the right
of first refusal described in Section 3(b) and the expiration or exercise of
the Repurchase Option, a new certificate or certificates representing the
Shares not repurchased shall be issued, on request, without the legend referred
to in Section 6(a)(ii) below and delivered to the Purchaser."
Except as specifically amended herein, the Purchase Agreement shall remain
in full force and effect.
This Amendment may be executed in counterparts, each of which shall
constitute an original and all of which together constitute one instrument.
This Amendment shall be governed by California law.
3
IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of
the day and year above first written.
COMPANY: PURCHASER:
FindMail Communications, Inc. Xxxxx Xxxxxx
By: ___________________________________ ____________________________________
Xxxxxx Roscheisen, (Signature)
Chief Executive Officer
4
FINDMAIL COMMUNICATIONS, INC.
COMMON STOCK PURCHASE AGREEMENT
This Common Stock Purchase Agreement (the "Agreement") is made as of June 5,
1998, by and between FindMail Communications, Inc., a Delaware corporation (the
"Company"), and Xxxxx Xxxxxx ("Purchaser").
1. SALE OF STOCK. Subject to the terms and conditions of this Agreement, on the
Purchase Date (as defined below) the Company will issue and sell to Purchaser,
and Purchaser agrees to purchase from the Company, 1,344,321 shares of the
Company's Common Stock (the "Shares") at a purchase price of $0.01 per Share for
a total purchase price of $13,443.21. The term "Shares" refers to the purchased
Shares and all securities received in replacement of or in connection with the
Shares pursuant to stock dividends or splits, all securities received in
replacement of the Shares in a recapitalization, merger, reorganization,
exchange or the like, and all new, substituted or additional securities or other
properties to which Purchaser is entitled by reason of Purchaser's ownership of
the Shares.
2. PURCHASE. The purchase and sale of the Shares under this Agreement shall
occur at the principal office of the Company simultaneously with the execution
of this Agreement or at such other time and place as the Company and Purchaser
shall agree (the "Purchase Date"). On the Purchase Date, the Company will
deliver to Purchaser a certificate representing the Shares to be purchased by
Purchaser (which shall be issued in Purchaser's name) against payment of the
purchase price therefor by cash, check or an assignment of certain assets as set
forth in the Xxxx of Sale and Instrument of Assignment in the form attached to
this Agreement as Exhibit A.
3. LIMITATIONS ON TRANSFER. In addition to any other limitation on transfer
created by applicable securities laws, Purchaser shall not assign, encumber or
dispose of any interest in the Shares while the Shares are subject to the
Company's Repurchase Option (as defined below), except as provided below. After
any Shares have been released from the Repurchase Option, Purchaser shall not
assign, encumber or dispose of any interest in such Shares except in compliance
with the provisions below and applicable securities laws.
(a) REPURCHASE OPTION.
(i) In the event of the voluntary or involuntary termination of
Purchaser's employment or consulting relationship with the Company for any
reason (including death or disability), with or without cause, the Company shall
upon the date of such termination (the "Termination Date") have an irrevocable,
exclusive option (the "Repurchase Option") for a period of 60 days from such
date to repurchase all or any portion of the Shares held by Purchaser as of the
Termination Date which have not yet been released from the Company's Repurchase
Option at the original purchase price per Share specified in Section 1 (adjusted
5
for any stock splits, stock dividends and the like); provided, however, that the
Repurchase Option shall continue for a period of up to one year from the
Termination Date to the extent that the Company reasonably determines that such
an extension of time is necessary to prevent the repurchase of Purchaser's
Shares from causing other capital stock of the Company to not qualify as "small
business stock" under Section 1202 of the Internal Revenue Code of 1986, as
amended.
(ii) The Repurchase Option shall be exercised by the Company by written
notice to Purchaser or Purchaser's executor and, at the Company's option, (A) by
delivery to Purchaser or Purchaser's executor with such notice of a check in the
amount of the purchase price for the Shares being purchased, or (B) in the event
Purchaser is indebted to the Company, by cancellation by the Company of an
amount of such indebtedness equal to the purchase price for the Shares being
repurchased, or (C) by a combination of (A) and (B) so that the combined payment
and cancellation of indebtedness equals such purchase price. Upon delivery of
such notice and payment of the purchase price in any of the ways described
above, the Company shall become the legal and beneficial owner of the Shares
being repurchased and all rights and interest therein or related thereto, and
the Company shall have the right to transfer to its own name the number of
Shares being repurchased by the Company, without further action by Purchaser.
(iii) The Repurchase Option shall be in effect with respect to sixty-
seven percent (67%) of the Shares and shall lapse as to 1/36 of such Shares on
each monthly anniversary of the Vesting Commencement Date (as set forth on the
signature page of this Agreement), until all Shares are released from the
Repurchase Option (provided in each case that Purchaser's employment or
consulting relationship with the Company has not been terminated prior to the
date of any such release). The remaining thirty-three percent (33%) shall not be
subject to the Repurchase Option. Fractional shares shall be rounded to the
nearest whole share.
(b) RIGHT OF FIRST REFUSAL. Before any Shares held by Purchaser or any
transferee of Purchaser (either being sometimes referred to herein as the
"Holder") may be sold or otherwise transferred (including transfer by gift or
operation of law), the Company or its assignee(s) shall have a right of first
refusal to purchase the Shares on the terms and conditions set forth in this
Section 3(b) (the "Right of First Refusal").
(i) NOTICE OF PROPOSED TRANSFER. The Holder of the Shares shall deliver
to the Company a written notice (the "Notice") stating: (A) the Holder's bona
fide intention to sell or otherwise transfer such Shares; (B) the name of each
proposed purchaser or other transferee ("Proposed Transferee"); (C) the number
of Shares to be transferred to each Proposed Transferee; and (D) the terms and
conditions of each proposed sale or transfer. The Holder shall offer the Shares
at the same price (the "Offered Price") and upon the same terms (or terms as
similar as reasonably possible) to the Company or its assignee(s).
(ii) EXERCISE OF RIGHT OF FIRST REFUSAL. At any time within thirty (30)
days after receipt of the Notice, the Company and/or its assignee(s) may, by
giving written notice to the
-2-
6
Holder, elect to purchase all, but not less than all, of the Shares proposed to
be transferred to any one or more of the Proposed Transferees, at the purchase
price determined in accordance with subsection (iii) below.
(iii) PURCHASE PRICE. The purchase price ("Purchase Price") for the
Shares purchased by the Company or its assignee(s) under this Section 3(b) shall
be the Offered Price. If the Offered Price includes consideration other than
cash, the cash equivalent value of the non-cash consideration shall be
determined by the Board of Directors of the Company in good faith.
(iv) PAYMENT. Payment of the Purchase Price shall be made, at the option
of the Company or its assignee(s), in cash (by check), by cancellation of all or
a portion of any outstanding indebtedness of the Holder to the Company (or, in
the case of repurchase by an assignee, to the assignee), or by any combination
thereof within 30 days after receipt of the Notice or in the manner and at the
times set forth in the Notice.
(v) HOLDER'S RIGHT TO TRANSFER. If all of the Shares proposed in the
Notice to be transferred to a given Proposed Transferee are not purchased by the
Company and/or its assignee(s) as provided in this Section 3(b), then the Holder
may sell or otherwise transfer such Shares to that Proposed Transferee at the
Offered Price or at a higher price, provided that such sale or other transfer is
consummated within 60 days after the date of the Notice and provided further
that any such sale or other transfer is effected in accordance with any
applicable securities laws and the Proposed Transferee agrees in writing that
the provisions of this Section 3 shall continue to apply to the Shares in the
hands of such Proposed Transferee. If the Shares described in the Notice are not
transferred to the Proposed Transferee within such period, or if the Holder
proposes to change the price or other terms to make them more favorable to the
Proposed Transferee, a new Notice shall be given to the Company, and the Company
and/or its assignees shall again be offered the Right of First Refusal before
any Shares held by the Holder may be sold or otherwise transferred.
(vi) EXCEPTION FOR CERTAIN FAMILY TRANSFERS. Anything to the contrary
contained in this Section 3(b) notwithstanding, the transfer of any or all of
the Shares during Purchaser's lifetime or on Purchaser's death by will or
intestacy to Purchaser's Immediate Family or a trust for the benefit of
Purchaser's Immediate Family shall be exempt from the provisions of this Section
3(b). "Immediate Family" as used herein shall mean spouse, lineal descendant or
antecedent, father, mother, brother or sister. In such case, the transferee or
other recipient shall receive and hold the Shares so transferred subject to the
provisions of this Section, and there shall be no further transfer of such
Shares except in accordance with the terms of this
Section 3.
(c) INVOLUNTARY TRANSFER.
-3-
7
(i) COMPANY'S RIGHT TO PURCHASE UPON INVOLUNTARY TRANSFER. In the event,
at any time after the date of this Agreement, of any transfer by operation of
law or other involuntary transfer (including death or divorce, but excluding a
transfer to Immediate Family as set forth in Section 3(b)(vi) above) of all or a
portion of the Shares by the record holder thereof, the Company shall have an
option to purchase all of the Shares transferred at the greater of the purchase
price paid by Purchaser pursuant to this Agreement or the fair market value of
the Shares on the date of transfer. Upon such a transfer, the person acquiring
the Shares shall promptly notify the Secretary of the Company of such transfer.
The right to purchase such Shares shall be provided to the Company for a period
of 30 days following receipt by the Company of written notice by the person
acquiring the Shares.
(ii) PRICE FOR INVOLUNTARY TRANSFER. With respect to any stock to be
transferred pursuant to Section 3(c)(i), the price per Share shall be a price
set by the Board of Directors of the Company that will reflect the current value
of the stock in terms of present earnings and future prospects of the Company.
The Company shall notify Purchaser or his or her executor of the price so
determined within 30 days after receipt by it of written notice of the transfer
or proposed transfer of Shares. However, if the Purchaser does not agree with
the valuation as determined by the Board of Directors of the Company, the
Purchaser shall be entitled to have the valuation determined by an independent
appraiser to be mutually agreed upon by the Company and the Purchaser and whose
fees shall be borne equally by the Company and the Purchaser.
(d) ASSIGNMENT. The right of the Company to purchase any part of the Shares may
be assigned in whole or in part to any stockholder or stockholders of the
Company or other persons or organizations; provided, however, that an assignee,
other than a corporation that is the parent or a 100% owned subsidiary of the
Company, must pay the Company, upon assignment of such right, cash equal to the
difference between the original purchase price and fair market value, if the
original purchase price is less than the fair market value of the Shares subject
to the assignment.
(e) RESTRICTIONS BINDING ON TRANSFEREES. All transferees of Shares or any
interest therein will receive and hold such Shares or interest subject to the
provisions of this Agreement, including, insofar as applicable, the Repurchase
Option. Any sale or transfer of the Company's Shares shall be void unless the
provisions of this Agreement are met.
(f) TERMINATION OF RIGHTS. The rights granted the Company in this Section 3
shall terminate upon the earlier to occur of (i) the first sale of Common Stock
of the Company to the general public pursuant to a registration statement filed
with and declared effective by the Securities and Exchange Commission under the
Securities Act, or (ii) the completion of a "Change of Control Transaction."
Upon such termination, a new certificate or certificates representing the Shares
not repurchased shall be issued, on request, without the legend referred to in
Section 6(a)(ii) below and delivered to Purchaser. As used herein, the term
"Change of Control Transaction" shall include: (x) a merger or consolidation in
which the Company is not the surviving entity, except for a transaction the
principal purpose of which
-4-
8
is to change the State of the Company's incorporation; (y) the sale, transfer or
other disposition of all or substantially all of the assets of the Company in
complete liquidation or dissolution of the Company; (z) any reverse merger in
which the Company is the surviving entity but in which all of the Company's
outstanding voting stock is transferred to the acquiring entity or its
wholly-owned subsidiary.
4. ESCROW OF UNVESTED SHARES. For purposes of facilitating the enforcement of
the provisions of Section 3 above, Purchaser agrees, immediately upon receipt of
the certificate(s) for the Shares subject to the Repurchase Option, to deliver
such certificate(s), together with an Assignment Separate from Certificate in
the form attached to this Agreement as Exhibit B executed by Purchaser and by
Purchaser's spouse (if required for transfer), in blank, to the Secretary of the
Company, or the Secretary's designee, to hold such certificate(s) and Assignment
Separate from Certificate in escrow and to take all such actions and to
effectuate all such transfers and/or releases as are in accordance with the
terms of this Agreement. Purchaser hereby acknowledges that the Secretary of the
Company, or the Secretary's designee, is so appointed as the escrow holder with
the foregoing authorities as a material inducement to make this Agreement and
that said appointment is coupled with an interest and is accordingly
irrevocable. Purchaser agrees that said escrow holder shall not be liable to any
party hereof (or to any other party). The escrow holder may rely upon any
letter, notice or other document executed by any signature purported to be
genuine and may resign at any time. Purchaser agrees that if the Secretary of
the Company, or the Secretary's designee, resigns as escrow holder for any or no
reason, the Board of Directors of the Company shall have the power to appoint a
successor to serve as escrow holder pursuant to the terms of this Agreement.
5. INVESTMENT AND TAXATION REPRESENTATIONS. In connection with the purchase of
the Shares, Purchaser represents to the Company the following:
(a) Purchaser is aware of the Company's business affairs and financial condition
and has acquired sufficient information about the Company to reach an informed
and knowledgeable decision to acquire the Shares. Purchaser is purchasing the
Shares for investment for his or her own account only and not with a view to, or
for resale in connection with, any "distribution" thereof within the meaning of
the Securities Act.
(b) Purchaser understands that the Shares have not been registered under the
Securities Act by reason of a specific exemption therefrom, which exemption
depends upon, among other things, the bona fide nature of Purchaser's investment
intent as expressed herein.
(c) Purchaser further acknowledges and understands that the Shares must be held
indefinitely unless they are subsequently registered under the Securities Act or
an exemption from such registration is available. Purchaser further acknowledges
and understands that the Company is under no obligation to register the Shares.
Purchaser understands that the certificate evidencing the Shares will be
imprinted with a legend which prohibits the transfer
-5-
9
of the Shares unless they are registered or such registration is not required in
the opinion of counsel for the Company.
(d) Purchaser is familiar with the provisions of Rules 144 and 701, each
promulgated under the Securities Act, which, in substance, permit limited public
resale of "restricted securities" acquired, directly or indirectly, from the
issuer thereof (or from an affiliate of such issuer), in a non-public offering
subject to the satisfaction of certain conditions. Rule 701 provides that if the
issuer qualifies under Rule 701 at the time of issuance of the securities, such
issuance will be exempt from registration under the Securities Act. In the event
the Company becomes subject to the reporting requirements of Section 13 or 15(d)
of the Securities Exchange Act of 1934 (the "Exchange Act"), the securities
exempt under Rule 701 may be resold by Purchaser 90 days thereafter, subject to
the satisfaction of certain of the conditions specified by Rule 144, including,
among other things: (1) the sale being made through a broker in an unsolicited
"broker's transaction" or in transactions directly with a market maker (as said
term is-defined under the Exchange Act); and (2) in the case of an affiliate,
the availability of certain public information about the Company, and the amount
of securities being sold during any three month period not exceeding the
limitations specified in Rule 144(e), if applicable. Notwithstanding this
Section 5(d), Purchaser acknowledges and agrees to the restrictions set forth in
Section 5(f) hereof.
In the event that the Company does not qualify under Rule 701 at the time of
purchase, then the Shares may be resold by Purchaser in certain limited
circumstances subject to the provisions of Rule 144, which requires, among other
things: (1) the availability of certain public information about the Company;
(2) the resale occurring not less than one year after the party has purchased,
and made full payment of (within the meaning of Rule 144), the securities to be
sold; and, in the case of an affiliate, or of a non-affiliate who has held the
securities less than two years, (3) the sale being made through a broker in an
unsolicited "broker's transaction" or in transactions directly with a market
maker (as such term is defined under the Exchange Act) and the amount of
securities being sold during any three month period not exceeding the specified
limitations stated therein, if applicable.
(e) Purchaser further understands that at the time he or she wishes to sell the
Shares there may be no public market upon which to make such a sale, and that,
even if such a public market then exists, the Company may not be satisfying the
current public information requirements of Rule 144 or 701, and that, in such
event, Purchaser would be precluded from selling the Shares under Rule 144 or
701 even if the one-year minimum holding period had been satisfied.
(f) Purchaser further understands that in the event all of the applicable
requirements of Rule 144 or 701 are not satisfied, registration under the
Securities Act, compliance with Regulation A, or some other registration
exemption will be required; and that, notwithstanding the fact that Rules 144
and 701 are not exclusive, the Staff of the Securities and Exchange Commission
has expressed its opinion that persons proposing to sell private placement
securities other than in a registered offering and otherwise than pursuant to
Rule
-6-
10
144 or 701 will have a substantial burden of proof in establishing that an
exemption from registration is available for such offers or sales, and that such
persons and their respective brokers who participate in such transactions do so
at their own risk.
(g) Purchaser understands that Purchaser may suffer adverse tax consequences as
a result of Purchaser's purchase or disposition of the Shares. Purchaser
represents that Purchaser has consulted any tax consultants Purchaser deems
advisable in connection the purchase or disposition of the Shares and that
Purchaser is not relying on the Company for any tax advice.
6. RESTRICTIVE LEGENDS AND STOP TRANSFER ORDERS.
(a) LEGENDS. The certificate or certificates representing the Shares shall bear
the following legends (as well as any legends required by applicable state and
federal corporate and securities laws):
(i) THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN
ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN
CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH
SALE OR DISPOSITION MAY BE EFFECTED WITHOUT AN EFFECTIVE
REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF
COUNSEL FOR THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED
UNDER THE SECURITIES ACT OF 1933.
(ii) THE SHARES REPRESENTED BY THIS CERTIFICATE MAY BE TRANSFERRED
ONLY IN ACCORDANCE WITH THE TERMS OF AN AGREEMENT BETWEEN THE
COMPANY AND THE STOCKHOLDER, A COPY OF WHICH IS ON FILE WITH
THE SECRETARY OF THE COMPANY.
(iii) Any legend required to be placed thereon by the California
Commissioner of Corporations.
(b) STOP TRANSFER. Purchaser agrees that, in order to ensure compliance with the
restrictions referred to herein, the Company may issue appropriate "stop
transfer" instructions to its transfer agent, if any, and that, if the Company
transfers its own securities, it may make appropriate notations to the same
effect in its own records.
(c) REFUSAL TO TRANSFER. The Company shall not be required (i) to transfer on
its books any Shares that have sold or otherwise transferred in violation of any
of the provisions of this Agreement or (ii) to treat as owner of such Shares or
to accord the right to vote or pay
-7-
11
dividends to any purchaser or other transferee to whom such Shares shall have
been so transferred.
7. NO EMPLOYMENT RIGHTS. Nothing in this Agreement shall affect in any manner
whatsoever the right or power of the Company, or a parent or subsidiary of the
Company, to terminate Purchaser's employment, for any reason, with or without
cause.
8. SECTION 83(b) ELECTION. Purchaser understands that Section 83(a) of the
Internal Revenue Code of 1986, as amended (the "Code"), taxes as ordinary income
the difference between the amount paid for the Shares and the fair market value
of the Shares as of the date any restrictions on the Shares lapse. In this
context, "restriction" means the right of the Company to buy back the Shares
pursuant to the Repurchase Option set forth in Section 3(a) of this Agreement.
Purchaser understands that Purchaser may elect to be taxed at the time the
Shares are purchased, rather than when and as the Repurchase Option expires, by
filing an election under Section 83(b) (an "83(b) Election") of the Code with
the Internal Revenue Service within 30 days from the date of purchase. Even if
the fair market value of the Shares at the time of the execution of this
Agreement equals the amount paid for the Shares, the election must be made to
avoid income under Section 83(a) in the future. Purchaser understands that
failure to file such an election in a timely manner may result in adverse tax
consequences for Purchaser. Purchaser further understands that an additional
copy of such election form should be filed with his or her federal income tax
return for the calendar year in which the date of this Agreement falls.
Purchaser acknowledges that the foregoing is only a summary of the effect of
United States federal income taxation with respect to purchase of the Shares
hereunder, and does not purport to be complete. Purchaser further acknowledges
that the Company has directed Purchaser to seek independent advice regarding the
applicable provisions of the Code, the income tax laws of any municipality,
state or foreign country in which Purchaser may reside, and the tax consequences
of Purchaser's death.
Purchaser agrees that he will execute and deliver to the Company with this
executed Agreement a copy of the Acknowledgment and Statement of Decision
Regarding Section 83(b) Election (the "Acknowledgment"), attached hereto as
Exhibit C. Purchaser further agrees that Purchaser will execute and submit with
the Acknowledgment a copy of the 83(b) Election, attached hereto as Exhibit D if
Purchaser has indicated in the Acknowledgment his or her decision to make such
an election.
9. MARKET STANDOFF AGREEMENT. In connection with the initial public offering of
the Company's securities and upon request of the Company or the underwriters
managing any underwritten offering of the Company's securities, Purchaser agrees
not to sell, make any short sale of, loan, grant any option for the purchase of,
or otherwise dispose of any Shares (other than those included in the
registration) without the prior written consent of the Company or such
underwriters, as the case may be, for such period of time (not to exceed 180
days) from the effective date of such registration as may be requested by the
Company or such managing underwriters and to execute an agreement reflecting the
foregoing as may be requested by the underwriters at the time of the public
offering.
-8-
12
10. MISCELLANEOUS.
(a) GOVERNING LAW. This Agreement and all acts and transactions pursuant hereto
and the rights and obligations of the parties hereto shall be governed,
construed and interpreted in accordance with the laws of the State of
California, without giving effect to principles of conflicts of law.
(b) ENTIRE AGREEMENT; ENFORCEMENT OF RIGHTS. This Agreement sets forth the
entire agreement and understanding of the parties relating to the subject matter
herein and merges all prior discussions between them. No modification of or
amendment to this Agreement, nor any waiver of any rights under this Agreement,
shall be effective unless in writing signed by the parties to this Agreement.
The failure by either party to enforce any rights under this Agreement shall not
be construed as a waiver of any rights of such party.
(c) SEVERABILITY. If one or more provisions of this Agreement are held to be
unenforceable under applicable law, the parties agree to renegotiate such
provision in good faith. In the event that the parties cannot reach a mutually
agreeable and enforceable replacement for such provision, then (i) such
provision shall be excluded from this Agreement, (ii) the balance of the
Agreement shall be interpreted as if such provision were so excluded and (iii)
the balance of the Agreement shall be enforceable in accordance with its terms.
(d) CONSTRUCTION. This Agreement is the result of negotiations between and has
been reviewed by each of the parties hereto and their respective counsel, if
any; accordingly, this Agreement shall be deemed to be the product of all of the
parties hereto, and no ambiguity shall be construed in favor of or against any
one of the parties hereto.
(e) NOTICES. Any notice required or permitted by this Agreement shall be in
writing and shall be deemed sufficient when delivered personally or sent by
telegram or fax or forty-eight (48) hours after being deposited in the U.S.
mail, as certified or registered mail, with postage prepaid, and addressed to
the party to be notified at such party's address as set forth below or as
subsequently modified by written notice.
(f) COUNTERPARTS. This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original and all of which together shall
constitute one instrument.
(g) SUCCESSORS AND ASSIGNS. The rights and benefits of this Agreement shall
inure to the benefit of, and be enforceable by the Company's successors and
assigns. The rights and obligations of Purchaser under this Agreement may only
be assigned with the prior written consent of the Company.
(h) CALIFORNIA CORPORATE SECURITIES LAW. THE SALE OF THE SECURITIES WHICH ARE
THE SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED
-9-
13
WITH THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA AND THE
ISSUANCE.OF THE SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE
CONSIDERATION THEREFOR PRIOR TO THE QUALIFICATION IS UNLAWFUL, UNLESS THE SALE
OF SECURITIES IS EXEMPT FROM QUALIFICATION BY SECTION 25100, 25102 OR 25105 OF
THE CALIFORNIA CORPORATIONS CODE. THE RIGHTS OF ALL PARTIES TO THIS AGREEMENT
ARE EXPRESSLY CONDITIONED UPON THE QUALIFICATION BEING OBTAINED, UNLESS THE SALE
IS SO EXEMPT.
[Signature Page Follows]
The parties have executed this Agreement as of the date first set forth above.
FINDMAIL COMMUNICATIONS, INC.
By:
---------------------------------
Title:
------------------------------
Address:
000 Xxxxxx Xxxxxx
Xxx Xxxxxxxxx, XX 00000
PURCHASER ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO SECTION
3 HEREOF IS EARNED ONLY BY CONTINUING SERVICE AS AN EMPLOYEE OR CONSULTANT AT
THE WILL OF THE COMPANY. PURCHASER FURTHER ACKNOWLEDGES AND AGREES THAT NOTHING
IN THIS AGREEMENT SHALL CONFER UPON PURCHASER ANY RIGHT WITH RESPECT TO
CONTINUATION OF SUCH EMPLOYMENT OR CONSULTING RELATIONSHIP WITH THE COMPANY, NOR
SHALL IT INTERFERE IN ANY WAY WITH PURCHASER'S RIGHT OR THE COMPANY'S RIGHT TO
TERMINATE PURCHASER'S EMPLOYMENT OR CONSULTING RELATIONSHIP AT ANY TIME, WITH OR
WITHOUT CAUSE.
PURCHASER:
XXXXX XXXXXX
------------------------------------
(Signature)
-10-
