PEERLESS SYSTEMS CORPORATION 2005 INCENTIVE AWARD PLAN RESTRICTED STOCK AWARD GRANT NOTICE AND RESTRICTED STOCK AWARD AGREEMENT
EXHIBIT 99.4
PEERLESS SYSTEMS CORPORATION
2005 INCENTIVE AWARD PLAN
2005 INCENTIVE AWARD PLAN
RESTRICTED STOCK AWARD GRANT NOTICE AND
RESTRICTED STOCK AWARD AGREEMENT
RESTRICTED STOCK AWARD AGREEMENT
Peerless Systems Corporation (the “Company”), pursuant to its 2005 Incentive Award Plan (the
"Plan”), hereby grants to the individual listed below (“Holder”), the right to purchase the number
of shares of the Company’s Common Stock set forth below (the “Shares”) at the purchase price set
forth below. This Restricted Stock award is subject to all of the terms and conditions as set
forth herein and in the Restricted Stock Award Agreement attached hereto as Exhibit A (the
"Restricted Stock Agreement”) and the Plan, each of which are incorporated herein by reference.
Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings
in this Grant Notice and the Restricted Stock Agreement.
Holder:
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Grant Date:
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Purchase Price per Share:
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$ | |||
Total Number of Shares of Restricted Stock:
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shares | |||
The Shares shall be released from the Company’s Repurchase Option in a series of 4 equal annual installments on each anniversary of the Grant Date. In no event, however, shall any additional Shares be released from the Company’s Repurchase Option after Holder’s Termination of Employment, Termination of Directorship or Termination of Consultancy, as applicable. |
By his or her signature and the Company’s signature below, Xxxxxx agrees to be bound by the
terms and conditions of the Plan, the Restricted Stock Agreement and this Grant Notice. Holder has
reviewed the Restricted Stock Agreement, the Plan and this Grant Notice in their entirety, has had
an opportunity to obtain the advice of counsel prior to executing this Grant Notice and fully
understands all provisions of this Grant Notice, the Restricted Stock Agreement and the Plan.
Holder hereby agrees to accept as binding, conclusive and final all decisions or interpretations of
the Administrator of the Plan upon any questions arising under the Plan, this Grant Notice or the
Restricted Stock Agreement. If Xxxxxx is married, his or her spouse has signed the Consent of
Spouse attached to this Grant Notice as Exhibit B.
PEERLESS SYSTEMS CORPORATION: | HOLDER: | |||||||||
By: |
By: | |||||||||
Print Name: | Print Name: | |||||||||
Title: | ||||||||||
Address: | 0000 Xxxxxxxxx Xxxxxx | Address: | ||||||||
El Segundo, CA 90245 | ||||||||||
Exhibit 99.4
EXHIBIT A
TO RESTRICTED STOCK AWARD GRANT NOTICE
TO RESTRICTED STOCK AWARD GRANT NOTICE
Pursuant to the Restricted Stock Award Grant Notice (“Grant Notice”) to which this Restricted
Stock Award Agreement (this “Agreement”) is attached, Peerless Systems Corporation (the “Company”)
has granted to Holder the right to purchase the number of shares of Restricted Stock under the
Company’s 2005 Incentive Award Plan (the “Plan”) indicated in the Grant Notice.
1.1 Defined Terms. Capitalized terms not specifically defined herein shall have the
meanings specified in the Plan and the Grant Notice.
1.2 Incorporation of Terms of Plan. The Shares are subject to the terms and
conditions of the Plan which are incorporated herein by reference.
2.1 Grant of Restricted Stock. In consideration of Holder’s past and/or continued
employment with or service to the Company or its Subsidiaries and for other good and valuable
consideration, effective as of the Grant Date set forth in the Grant Notice (the “Grant Date”), the
Company irrevocably grants to Holder the right to purchase the number of shares of Common Stock set
forth in the Grant Notice (the “Shares”), upon the terms and conditions set forth in the Plan and
this Agreement.
2.2 Purchase Price. The purchase price of the Shares shall be as set forth in the
Grant Notice, without commission or other charge. The payment of the purchase price shall be paid
by cash or check.
2.3 Issuance of Shares. The issuance of the Shares under this Agreement shall occur
at the principal office of the Company simultaneously with the execution of this Agreement by the
parties or on such other date as the Company and Holder shall agree (the “Issuance Date”). Subject
to the provisions of Article IV below, on the Issuance Date, the Company shall issue the Shares
(which shall be issued in Holder’s name).
(a) The admission of such Shares to listing on all stock exchanges on which such Common Stock
is then listed;
(b) The completion of any registration or other qualification of such shares under any state
or federal law or under rulings or regulations of the Securities and Exchange Commission or of any
other governmental regulatory body, which the Administrator shall, in its absolute discretion, deem
necessary or advisable;
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(c) The obtaining of any approval or other clearance from any state or federal governmental
agency which the Administrator shall, in its absolute discretion, determine to be necessary or
advisable;
(d) The lapse of such reasonable period of time following the Issuance Date as the
Administrator may from time to time establish for reasons of administrative convenience; and
(e) The receipt by the Company of full payment for such shares, including payment of all
amounts which, under federal, state or local tax law, the Company (or other employer corporation)
is required to withhold upon issuance of such Shares.
2.5 Rights as Stockholder. Except as otherwise provided herein, upon delivery of the
Shares to the escrow holder pursuant to Article IV, Holder shall have all the rights of a
stockholder with respect to said Shares, subject to the restrictions herein, including the right to
vote the Shares and to receive all dividends or other distributions paid or made with respect to
the Shares.
2.6 Consideration to the Company. In consideration of the issuance of the Shares by
the Company, Xxxxxx agrees to render faithful and efficient services to the Company or any Parent
or Subsidiary. Nothing in the Plan or this Agreement shall confer upon Holder any right to
continue in the employ or service of the Company or any Parent or Subsidiary or shall interfere
with or restrict in any way the rights of the Company and its Parents and Subsidiaries, which
rights are hereby expressly reserved, to discharge or terminate the services of Holder at any time
for any reason whatsoever, with or without Cause, except to the extent expressly provided otherwise
in a written agreement between the Company, a Parent or a Subsidiary and Holder.
2.7 Assets or Securities Issued With Respect to Shares. Any and all cash dividends
paid on the Shares (or other securities at the time held in escrow pursuant to Section 4.1 and the
Joint Escrow Instructions) and any and all shares of Common Stock, capital stock or other
securities or other property received by or distributed to Holder with respect to, in exchange for
or in substitution of the Shares as a result of any stock dividend, stock split, reverse stock
split, recapitalization, combination, reclassification, or similar change in the capital structure
of the Company shall also be subject to the Repurchase Option (as defined in Section 3.1 below) and
the restrictions on transfer in Section 3.4 below until such restrictions on the underlying Shares
lapse or are removed pursuant to this Agreement (or, if such Shares are no longer outstanding,
until such time as such Shares would have been released from the Company’s Repurchase Option
pursuant to this Agreement). In addition, in the event of any merger, consolidation, share
exchange or reorganization affecting the Shares, including, without limitation, a Change of
Control, then any new, substituted or additional securities or other property (including money paid
other than as a regular cash dividend) that is by reason of any such transaction received with
respect to, in exchange for or in substitution of the Shares shall also be subject to the
Repurchase Option (as defined in Section 3.1 below) and the restrictions on transfer in Section 3.4
below until such restrictions on the underlying Shares lapse or are removed pursuant to this
Agreement (or, if such Shares are no longer outstanding, until such time as such Shares would have
been released from the Company’s Repurchase Option pursuant to this Agreement). Any such assets or
other securities received by or distributed to Holder with respect to, in exchange for or in
substitution of any Unreleased Shares shall be immediately delivered to the Company to be held in
escrow pursuant to Section 4.1.
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3.1 Repurchase Option. Subject to the provisions of Section 3.2 below, if Holder
experiences a Termination of Employment, Termination of Directorship or Termination of Consultancy,
as applicable, before all of the Shares are released from the Company’s Repurchase Option (as
defined below), the Company shall, upon the date of such termination (as reasonably fixed and
determined by the Company), have an irrevocable, exclusive option, but not the obligation, for a
period of ninety (90) days after the date Holder experiences a Termination of Employment,
Termination of Directorship or Termination of Consultancy, as applicable, to repurchase all or any
portion of the Unreleased Shares (as defined below in Section 3.3) at such time (the “Repurchase
Option”) at the lower of (i) the original cash purchase price per share or (ii) the then current
Fair Market Value on the date of repurchase (the “Repurchase Price”). The Repurchase Option shall
lapse and terminate ninety (90) days after Holder experiences a Termination of Employment,
Termination of Directorship or Termination of Consultancy, as applicable. The Repurchase Option
shall be exercisable by the Company by written notice to Holder or Holder’s executor (with a copy
to the escrow agent appointed pursuant to Section 4.1 below) and shall be exercisable, at the
Company’s option, by delivery to Holder or Holder’s executor with such notice of a check in the
amount of the Repurchase Price times the number of Shares to be repurchased (the “Aggregate
Repurchase Price”). Upon delivery of such notice and the payment of the Aggregate Repurchase
Price, the Company shall become the legal and beneficial owner of the Shares being repurchased and
all rights and interests therein or relating thereto, and the Company shall have the right to
retain and transfer to its own name the number of Shares being repurchased by the Company. In the
event the Company repurchases any Shares under this Section 3.1, any assets or securities received
by or distributed to Holder with respect to, in exchange for or in substitution of such Shares and
held by the escrow agent pursuant to Section 4.1 and the Joint Escrow Instructions shall be
promptly paid by the escrow agent to the Company.
3.2 Release of Shares from Repurchase Restriction. The Shares shall be released from
the Company’s Repurchase Option in accordance with the Vesting Schedule set forth on the Grant
Notice. Any of the Shares released from the Company’s Repurchase Option shall thereupon be
released from the restrictions on transfer under Section 3.4.
3.3 Unreleased Shares. Any of the Shares which, from time to time, have not yet been
released from the Company’s Repurchase Option are referred to herein as “Unreleased Shares.”
(a) Subject to Subsection 3.4(b), no Unreleased Shares or any interest or right therein or
part thereof shall be liable for the debts, contracts or engagements of Holder or his or her
successors in interest or shall be subject to disposition by transfer, alienation, anticipation,
pledge, encumbrance, assignment or any other means whether such disposition be voluntary or
involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or
equitable proceedings (including bankruptcy), and any attempted disposition thereof shall be null
and void and of no effect.
(b) Notwithstanding any other provision in this Agreement, with the consent of the
Administrator, the Unreleased Shares may be transferred to certain persons or entities related to
Holder, including but not limited to members of Holder’s family, charitable institutes or trusts or
other entities whose beneficiaries or beneficial owners are members of Holder’s family or to such
other persons or entities as may be expressly approved by the Administrator (each a “Permitted
Transferee”), pursuant to such conditions and procedures as the Administrator may require.
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4.2 Transfer of Repurchased Shares. Xxxxxx hereby authorizes and directs the
Secretary of the Company, or such other person designated by the Administrator, to transfer the
Unreleased Shares as to which the Repurchase Option has been exercised from Holder to the Company.
4.3 No Liability for Actions in Connection with Escrow. The Company, or its
designee, shall not be liable for any act it may do or omit to do with respect to holding the
Shares in escrow and while acting in good faith and in the exercise of its judgment.
5.1 Adjustment for Stock Split. In the event of any stock dividend, stock split,
reverse stock split, recapitalization, combination, reclassification, or similar change in the
capital structure of the Company, the Administrator shall make appropriate and equitable
adjustments in the Unreleased Shares subject to the Repurchase Option and the number of Shares,
consistent with any adjustment under Section 12.3 of the Plan. The provisions of this Agreement
shall apply, to the full extent set forth herein with respect to the Shares, to any and all shares
of capital stock or other securities which may be issued in respect of, in exchange for, or in
substitution of the Shares, and shall be appropriately adjusted for any stock dividends, splits,
reverse splits, combinations, recapitalizations and the like occurring after the date hereof.
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5.2 Taxes. Xxxxxx has reviewed with Xxxxxx’s own tax advisors the federal, state,
local and foreign tax consequences of this investment and the transactions contemplated by the
Grant Notice and this Agreement. Holder is relying solely on such advisors and not on any
statements or representations of the Company or any of its agents. Holder understands that Holder
(and not the Company) shall be responsible for Xxxxxx’s own tax liability that may arise as a
result of this investment or the transactions contemplated by this Agreement. Holder understands
that Holder will recognize ordinary income for federal income tax purposes under Section 83 of the
Code as the Repurchase Option set forth in Section 3.1 lapses. Holder understands that Holder may
elect to be taxed for federal income tax purposes at the time the Shares are purchased rather than
as and when the Repurchase Option lapses by filing an election under Section 83(b) of the Code with
the Internal Revenue Service within thirty (30) days from the date of purchase. A form of election
under Section 83(b) of the Code is attached to the Grant Notice as Exhibit X.
XXXXXX ACKNOWLEDGES THAT IT IS XXXXXX’S SOLE RESPONSIBILITY AND NOT THE COMPANY’S TO TIMELY FILE
THE ELECTION UNDER SECTION 83(b), EVEN IF HOLDER REQUESTS THE COMPANY OR
ITS REPRESENTATIVES TO MAKE THIS FILING ON HOLDER’S BEHALF.
5.3 Limitations Applicable to Section 16 Persons. Notwithstanding any other
provision of the Plan or this Agreement, if Holder is subject to Section 16 of the Exchange Act,
the Plan, the Shares and this Agreement shall be subject to any additional limitations set forth in
any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule
16b-3 of the Exchange Act) that are requirements for the application of such exemptive rule. To
the extent permitted by applicable law, this Agreement shall be deemed amended to the extent
necessary to conform to such applicable exemptive rule.
5.4 Administration. The Administrator shall have the power to interpret the Plan and
this Agreement and to adopt such rules for the administration, interpretation and application of
the Plan as are consistent therewith and to interpret, amend or revoke any such rules. All actions
taken and all interpretations and determinations made by the Administrator in good faith shall be
final and binding upon Holder, the Company and all other interested persons. No member of the
Administrator shall be personally liable for any action, determination or interpretation made in
good faith with respect to the Plan, this Agreement or the Shares. In its absolute discretion, the
Board may at any time and from time to time exercise any and all rights and duties of the
Administrator under the Plan and this Agreement.
(a) Any share certificate(s) evidencing the Shares issued hereunder shall be endorsed with the
following legend and any other legend required by any applicable federal and state securities laws:
THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A RIGHT OF
REPURCHASE IN FAVOR OF THE COMPANY AND MAY BE TRANSFERRED ONLY IN ACCORDANCE
WITH THE TERMS OF A RESTRICTED STOCK AWARD AGREEMENT BETWEEN THE COMPANY AND
THE STOCKHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE
COMPANY.
(b) Xxxxxx 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
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that, if the Company transfers its own securities, it may make appropriate notations to the
same effect in its own records.
(c) The Company shall not be required: (i) to transfer on its books any shares of Common
Stock that have been sold or otherwise transferred in violation of any of the provisions of this
Agreement, or (ii) to treat as owner of such shares of Common Stock or to accord the right to vote
or pay dividends to any purchaser or other transferee to whom such shares shall have been so
transferred.
5.6 Notices. Any notice to be given under the terms of this Agreement to the Company
shall be addressed to the Company in care of the Secretary of the Company, and any notice to be
given to Holder shall be addressed to Holder at the address given beneath Xxxxxx’s signature on the
Grant Notice. By a notice given pursuant to this Section 5.6, either party may hereafter designate
a different address for notices to be given to that party. Any notice shall be deemed duly given
when sent via email or when sent by certified mail (return receipt requested) and deposited (with
postage prepaid) in a post office or branch post office regularly maintained by the United States
Postal Service.
5.7 Titles. Titles are provided herein for convenience only and are not to serve as a
basis for interpretation or construction of this Agreement.
5.9 Conformity to Securities Laws. Holder acknowledges that the Plan is intended to
conform to the extent necessary with all provisions of the Securities Act and the Exchange Act and
any and all regulations and rules promulgated by the Securities and Exchange Commission thereunder,
and state securities laws and regulations. Notwithstanding anything herein to the contrary, the
Plan shall be administered, and the Shares are to be issued, only in such a manner as to conform to
such laws, rules and regulations. To the extent permitted by applicable law, the Plan and this
Agreement shall be deemed amended to the extent necessary to conform to such laws, rules and
regulations.
5.10 Amendments. This Agreement may not be modified, amended or terminated except by
an instrument in writing, signed by Xxxxxx and by a duly authorized representative of the Company.
5.11 No Employment Rights. If Holder is an Employee, nothing in the Plan or this
Agreement shall confer upon Holder any right to continue in the employ of the Company or any
Subsidiary or shall interfere with or restrict in any way the rights of the Company and its
Subsidiaries, which are expressly reserved, to discharge Holder at any time for any reason
whatsoever, with or without cause, except to the extent expressly provided otherwise in a written
agreement between the Company and Holder.
5.12 Successors and Assigns. The Company may assign any of its rights under this
Agreement to single or multiple assignees, and this Agreement shall inure to the benefit of the
successors and assigns of the Company. Subject to the restrictions on transfer herein set forth,
this Agreement shall be binding upon Xxxxxx and his or her heirs, executors, administrators,
successors and assigns.
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EXHIBIT 99.4
EXHIBIT B
TO RESTRICTED STOCK AWARD GRANT NOTICE
TO RESTRICTED STOCK AWARD GRANT NOTICE
CONSENT OF SPOUSE
I, spouse of , have read and approve the foregoing
Agreement. In consideration of issuing to my spouse the shares of the common stock of Peerless
Systems Corporation set forth in the Agreement, I hereby appoint my spouse as my attorney-in-fact
in respect to the exercise of any rights under the Agreement and agree to be bound by the
provisions of the Agreement insofar as I may have any rights in said Agreement or any shares of the
common stock of Peerless Systems Corporation issued pursuant thereto under the community property
laws or similar laws relating to marital property in effect in the state of our residence as of the
date of the signing of the foregoing Agreement.
Dated: ,
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Signature of Spouse |
EXHIBIT C
TO RESTRICTED STOCK AWARD GRANT NOTICE
TO RESTRICTED STOCK AWARD GRANT NOTICE
STOCK ASSIGNMENT
FOR VALUE RECEIVED, the undersigned, , hereby sells, assigns and
transfers unto PEERLESS SYSTEMS CORPORATION, a Delaware corporation,
shares of the Common Stock of PEERLESS SYSTEMS CORPORATION, a Delaware corporation, standing in its name
of the books of said corporation represented by Certificate No. ___herewith and do hereby
irrevocably constitute and appoint to transfer the said stock on the books of
the within named corporation with full power of substitution in the premises.
This Stock Assignment may be used only in accordance with the Restricted Stock Award Agreement
between PEERLESS SYSTEMS CORPORATION and the undersigned dated .
Dated: ,
[Name of Xxxxxx] |
INSTRUCTIONS: Please do not fill in the blanks other than the signature line. The purpose of this
assignment is to enable the Company to exercise its “Repurchase Option,” as set forth in the
Restricted Stock Award Agreement, without requiring additional signatures on the part of Holder.
EXHIBIT 99.4
EXHIBIT D
TO RESTRICTED STOCK AWARD GRANT NOTICE
TO RESTRICTED STOCK AWARD GRANT NOTICE
JOINT ESCROW INSTRUCTIONS
Ladies and Gentlemen:
As escrow agent (the “Escrow Agent”) for both Peerless Systems Corporation, a Delaware
corporation (the “Company”), and the undersigned recipient of stock of the Company (the “Holder”),
you are hereby authorized and directed to hold in escrow the documents delivered to you pursuant to
the terms of that certain Restricted Stock Award Agreement (“Agreement”) between the Company and
the undersigned (the “Escrow”), including the stock certificate and the Assignment in Blank, in
accordance with the following instructions:
1. In the event the Company and/or any assignee of the Company (referred to
collectively for convenience herein as the “Company”) exercises the Company’s Repurchase Option as
defined in the Agreement), the Company shall give to Holder and you a written notice specifying the
number of shares of stock to be purchased, the purchase price and the time for a closing hereunder
at the principal office of the Company. Xxxxxx and the Company hereby irrevocably authorize and
direct you to close the transaction contemplated by such notice in accordance with the terms of
said notice.
2. As of the date of closing of the repurchase indicated in such notice, you are directed (a)
to date the stock assignments necessary for the repurchase and transfer in question, (b) to fill in
the number of shares being repurchased and transferred, and (c) to deliver the same, together with
the certificate evidencing the shares of stock to be repurchased and transferred, to the Company or
its assignee.
3. Holder irrevocably authorizes the Company to deposit with you any certificates evidencing
shares of stock to be held by you hereunder and any additions and substitutions to said shares as
defined in the Agreement. Xxxxxx does hereby irrevocably constitute and appoint you as Xxxxxx’s
attorney-in-fact and agent for the term of this escrow to execute with respect to such securities
all documents necessary or appropriate to make such securities negotiable and to complete any
transaction herein contemplated, including but not limited to the filing with any applicable state
blue sky authority of any required applications for consent to, or notice of transfer of, the
securities. Subject to the provisions of this paragraph 3 and the Agreement, Holder shall exercise
all rights and privileges of a stockholder of the Company while the stock is held by you.
4. Upon written request of Xxxxxx, but no more than once per calendar month, unless the
Company’s Repurchase Option has been exercised, you will deliver to Holder a certificate or
certificates representing so many shares of stock as are not then subject to the Repurchase Option.
Within one hundred twenty (120) days after any voluntary or involuntary termination of Holder’s
services to the Company for any or no reason, you will deliver to Holder a certificate or
certificates representing the aggregate number of shares held or issued pursuant to the Agreement
and not repurchased pursuant to the Repurchase Option set forth in Section 3.1 of the Agreement.
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5. If at the time of termination of this escrow you should have in your possession any
documents, securities, or other property belonging to Xxxxxx, you shall deliver all of the same to
Holder and shall be discharged of all further obligations hereunder.
6. Your duties hereunder may be altered, amended, modified or revoked only by a writing signed
by all of the parties hereto.
7. You shall be obligated only for the performance of such duties as are specifically set
forth herein and may rely and shall be protected in relying or refraining from acting on any
instrument reasonably believed by you to be genuine and to have been signed or presented by the
proper party or parties. You shall not be personally liable for any act you may do or omit to do
hereunder as Escrow Agent or as attorney-in-fact for Holder while acting in good faith, and any act
done or omitted by you pursuant to the advice of your own attorneys shall be conclusive evidence of
such good faith.
8. You are hereby expressly authorized to disregard any and all warnings given by any of the
parties hereto or by any other person or corporation, excepting only orders or process of courts of
law and are hereby expressly authorized to comply with and obey orders, judgments or decrees of any
court. In case you obey or comply with any such order, judgment or decree, you shall not be liable
to any of the parties hereto or to any other person, firm or corporation by reason of such
compliance, notwithstanding any such order, judgment or decree being subsequently reversed,
modified, annulled, set aside, vacated or found to have been entered without jurisdiction.
9. You shall not be liable in any respect on account of the identity, authorities or rights of
the parties executing or delivering or purporting to execute or deliver the Agreement or any
documents or papers deposited or called for hereunder.
10. You shall not be liable for the expiration of any rights under any applicable state,
federal or local statute of limitations or similar statute or regulation with respect to these
Joint Escrow Instructions or any documents deposited with you.
11. You shall be entitled to employ such legal counsel and other experts as you may deem
necessary properly to advise you in connection with your obligations hereunder, may rely upon the
advice of such counsel, and may pay such counsel reasonable compensation therefor. The Company
will reimburse you for any reasonable attorneys’ fees with respect thereto.
12. Your responsibilities as Escrow Agent hereunder shall terminate if you shall cease to be
an officer or agent of the Company or if you shall resign by written notice to each party. In the
event of any such termination, the Company shall appoint a successor Xxxxxx Agent.
13. If you reasonably require other or further instruments in connection with these Joint
Escrow Instructions or obligations in respect hereto, the necessary parties hereto shall join in
furnishing such instruments.
14. It is understood and agreed that should any dispute arise with respect to the delivery
and/or ownership or right of possession of the securities held by you hereunder, you are authorized
and directed to retain in your possession without liability to anyone all or any part of said
securities until such disputes shall have been settled either by mutual written agreement of the
parties concerned or by a final order, decree or judgment of a court of competent jurisdiction
after the time for appeal has expired and no appeal has been perfected, but you shall be under no
duty whatsoever to institute or defend any such proceedings.
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15. Any notice to be given under the terms of this Agreement to the Company shall be addressed
to the Company in care of the Secretary of the Company, and any notice to be given to Holder or you
shall be addressed to the address given beneath Holder’s and your signatures on the signature page
to this Agreement. By a notice given pursuant to this Section 15, any party may hereafter
designate a different address for notices to be given to that party. Any notice which is required
to be given to Holder shall, if Holder is then deceased, be given to Holder’s designated
beneficiary, if any by written notice under this Section 15. Any notice shall be deemed duly given
when sent via email or when sent by certified mail (return receipt requested) and deposited (with
postage prepaid) in a post office or branch post office regularly obtained by the United States
Postal Service.
16. By signing these Joint Escrow Instructions, you become a party hereto only for the purpose
of said Joint Escrow Instructions; you do not become a party to the Agreement.
17. This instrument shall be binding upon and inure to the benefit of the parties hereto, and
their respective successors and permitted assigns.
18. These Joint Escrow Instructions shall be governed by, and construed and enforced in
accordance with, the laws of the State of Delaware, without regard to conflicts of law thereof.
PEERLESS SYSTEMS CORPORATION | ||||||
By: | ||||||
Name: | ||||||
Title: | ||||||
Address: | 0000 Xxxxxxxxx Xxxxxx | |||||
El Segundo, CA 90245 | ||||||
HOLDER: | ||||||
[Name of Xxxxxx] | ||||||
Address: | ||||||
ESCROW AGENT:
By: | |||||
Secretary, Peerless Systems Corporation | |||||
Address: | 0000 Xxxxxxxxx Xxxxxx | ||||
El Segundo, CA 90245 |
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EXHIBIT E
TO RESTRICTED STOCK AWARD GRANT NOTICE
TO RESTRICTED STOCK AWARD GRANT NOTICE
FORM OF 83(B) ELECTION AND INSTRUCTIONS
These instructions are provided to assist you if you choose to make an election under Section 83(b)
of the Internal Revenue Code, as amended, with respect to the shares of common stock, par value
$0.001, of Peerless Systems Corporation transferred to you. Please consult with your personal tax
advisor as to whether an election of this nature will be in your best interests in light of your
personal tax situation.
The executed original of the Section 83(b) election must be filed with the Internal Revenue Service
not later than 30 days after the date the shares were transferred to you. PLEASE NOTE: There is
no remedy for failure to file on time. The steps outlined below should be followed to ensure the
election is mailed and filed correctly and in a timely manner. ALSO, PLEASE NOTE: If you make the
Section 83(b) election, the election is irrevocable.
1. | Complete Section 83(b) election form (attached as Attachment 1) and make four (4) copies of the signed election form. (Your spouse, if any, should sign the Section 83(b) election form as well.) | |
2. | Prepare the cover letter to the Internal Revenue Service (sample letter attached as Attachment 2). | |
3. | Send the cover letter with the originally executed Section 83(b) election form and one (1) copy via certified mail, return receipt requested to the Internal Revenue Service at the address of the Internal Revenue Service where you file your personal tax returns. We suggest that you have the package date-stamped at the post office. The post office will provide you with a white certified receipt that includes a dated postmark. Enclose a self-addressed, stamped envelope so that the Internal Revenue Service may return a date-stamped copy to you. However, your postmarked receipt is your proof of having timely filed the Section 83(b) election if you do not receive confirmation from the Internal Revenue Service. | |
4. | One (1) copy must be sent to Peerless Systems Corporation for its records and one (1) copy must be attached to your federal income tax return for the applicable calendar year. | |
5. | Retain the Internal Revenue Service file stamped copy (when returned) for your records. |
Please consult your personal tax advisor for the address of the office of the Internal Revenue
Service to which you should mail your election form.
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ATTACHMENT 1 TO EXHIBIT E
ELECTION UNDER INTERNAL REVENUE CODE SECTION 83(B)
The undersigned taxpayer hereby elects, pursuant to Section 83(b) of the Internal Revenue Code
of 1986, as amended, to include in taxpayer’s gross income for the current taxable year the amount
of any compensation taxable to taxpayer in connection with taxpayer’s receipt of shares (the
"Shares”) of Common Stock, par value $0.001 per share, of Peerless Systems Corporation, a Delaware
corporation (the “Company”).
1. The name, address and taxpayer identification number of the undersigned taxpayer are:
SSN: | ||||
The name, address and taxpayer identification number of the Taxpayer’s spouse are (complete if
applicable):
SSN: | ||||
2. Description of the property with respect to which the election is being made:
shares of Common Stock, par value $0.001 per share, of the Company.
3. The date on which the property was transferred was .
4. The taxable year to which this election relates is calendar year .
5. Nature of restrictions to which the property is subject:
The Shares are subject to a repurchase right pursuant to which the Company has the right to
acquire the Shares at the lower of the purchase price paid per share or the fair market value per
share, if taxpayer’s service with the issuer terminates for any reason. The issuer’s repurchase
right will lapse in a series of annual installments over a four (4)-year period ending on
___, 20___.
6. The fair market value at the time of transfer (determined without regard to any lapse
restrictions, as defined in Treasury
Regulation Section 1.83-3(a)) of the Shares was
$ per
Share.
7. The
amount paid by the taxpayer for Shares was
$ per share.
8. A copy of this statement has been furnished to the Company.
Dated: , 200___
|
Taxpayer Signature |
The undersigned spouse of Xxxxxxxx joins in this election. (Complete if applicable).
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Dated: , 200___
|
Spouse’s Signature |
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ATTACHMENT 2 TO EXHIBIT E
SAMPLE COVER LETTER TO INTERNAL REVENUE SERVICE
[Date]
VIA CERTIFIED MAIL
RETURN RECEIPT REQUESTED
RETURN RECEIPT REQUESTED
Internal Revenue Service
[Address where taxpayer files returns]
[Address where taxpayer files returns]
Re: | Election under Section 83(b) of the Internal Revenue Code of 1986 |
Taxpayer: | ||
Taxpayer’s Social Security Number: | |||
Taxpayer’s Spouse: | ||
Taxpayer’s Spouse’s Social Security Number: | ||
Ladies and Gentlemen:
Enclosed please find an original and one copy of an Election under Section 83(b) of the
Internal Revenue Code of 1986, as amended, being made by the taxpayer referenced above. Please
acknowledge receipt of the enclosed materials by stamping the enclosed copy of the Election and
returning it to me in the self-addressed stamped envelope provided herewith.
Very truly yours, | ||
Enclosures | ||
cc:
|
Peerless Systems Corporation |
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