Registration of Securities Issued in a Business-Combination Transaction — Form S-4
Filing Table of Contents
Document/Exhibit Description Pages Size
1: S-4 Form S-4 Registration Statement 253 1.33M
2: EX-2.1 Amended & Restated Agreement & Plan of Reorg 50 253K
3: EX-2.2 Form of Agree. of Merger of Jts Corp.& Atari Corp. 8 31K
4: EX-3.1 Restated Certificate of Incorp - Jt Storage 21 72K
5: EX-3.2 Form of Restated Cert. of Incorp - Jts Corp. 4 24K
6: EX-3.3 By-Laws of Jt Storage, Inc. 14 48K
7: EX-3.4 Form of By-Laws of Jts Corporation (Post Merger) 28 135K
8: EX-4.1 Form of Common Stock Certificate Jts Corporation 2 20K
9: EX-4.2 Jt Storage Registration Rights Agreement 18 79K
10: EX-4.3 Atari & Security Pac.Natl Bank Indenture 4/29/87 94 263K
11: EX-4.4 Federated Grp/Security Pacific Natl Bank Indenture 102 366K
12: EX-4.5 Federated Group/Security Pacific 1st Sup Indenture 8 31K
13: EX-4.6 Warrant to Purchase Common Stock/Venture Lending 15 63K
14: EX-4.7 Warrant to Purchase Stock/Silicon Valley Bank 9 45K
15: EX-4.8 Warrant to Purchse Common Stock/Lunenburg S.A. 7 33K
16: EX-5.1 Opinion of Cooley Godward Et. Al. 1 17K
17: EX-8.1 Form of Cooley Godward Tax Opinion 3 23K
18: EX-8.2 Form of Wilson Sonsini Et. Al Tax Opinion 3 22K
19: EX-9.1 Atari Corp. Amended & Restated Voting Agreement 5 32K
20: EX-9.2 Jt Storage Amended & Restated Voting Agreement 5 32K
21: EX-10.1 Jt Storage 1995 Sop Amended & Restated 3/19/96 33 106K
30: EX-10.10 Restricted Stk Pur Agree/Kenneth D. Wing 1/2/96 22 77K
31: EX-10.11 Restricted Stk Pur Agree/W. Virginia Walker 1/5/96 22 78K
32: EX-10.12 Restricted Stk Pur Agree/David B. Pearce 1/2/96 21 70K
33: EX-10.13 Convertible Promissory Note 5 24K
34: EX-10.14 Promissory Note/Certain Principal Stkhldrs 1/19/96 6 25K
35: EX-10.15 Subord Secured Convertible Prom Note/Atari 2/13/96 35 136K
36: EX-10.16 Stock Purchase Agreement/Lunenburg 4/4/96 29 138K
37: EX-10.17 Draft/Technical Know How License Agreement 12 45K
38: EX-10.18 Lease Jts & Cilker Revocable Trust 6/15/95 41 161K
39: EX-10.19 Loan Agree Modular Elec (I) & Indusrial Credit 37 94K
22: EX-10.2 Jt Storage 1996 Non-Employee Directors Sop 3/19/96 14 52K
40: EX-10.20 Loan Agree Modular & Industrial Credit 10/11/94 44 113K
41: EX-10.21 Loan Agree Modular Electronic/Credit Invest India 19 48K
42: EX-10.22 Agreed Order Comprising Controversies 2/4/94 27 90K
43: EX-10.23 Master Agreement/Teac & Jt Storage, Inc. 32 95K
44: EX-10.24 License Agree Teac & Jt Storage 2/24/94 28 110K
45: EX-10.25 Development Agree Compaq & Jt Storage 6/16/94 32 120K
46: EX-10.26 Purchase Agree/Jts & Compaq 6/16/94 11 48K
47: EX-10.27 Technology Transfer Agree Western Digital 2/3/95 42 89K
48: EX-10.28 Agree Jt Storage & Pont Peripherals 1/31/95 24 100K
23: EX-10.3 Putnam Streamlined Standard 401(K) & Profit Shar 109 365K
24: EX-10.4 Indemnity Agreement 7 33K
25: EX-10.5 Employment Agreement 4 27K
26: EX-10.6 Jt Storage Consulting Agreement/Roger W. Johnson 5 29K
27: EX-10.7 Restricted Stk Pur Agree/David T. Mitchell 1/2/96 22 76K
28: EX-10.8 Restricted Stk Pur Agree/David T. Mitchell 3/6/96 21 79K
29: EX-10.9 Restricted Stk Pur Agree/Sirjang Lal Tandon 3/6/96 21 79K
49: EX-21.1 List of Subsidiaries 1 13K
50: EX-23.1 Consent of Arthur Andersen LLP 1 14K
51: EX-23.2 Consent of Deloitte & Touche LLP 1 14K
52: EX-27.1 Financial Data Schedule 1 16K
53: EX-99.1 Form of Jts Proxy 2 16K
54: EX-99.2 Form of Atari Proxy 2 16K
EX-10.12 — Restricted Stk Pur Agree/David B. Pearce 1/2/96
Exhibit Table of Contents
EXHIBIT 10.12
RESTRICTED STOCK PURCHASE AGREEMENT
THIS RESTRICTED STOCK PURCHASE AGREEMENT (this "Agreement") is made as
of January 2, 1996 (the "Effective Date") by and between JT Storage, Inc., a
Delaware corporation ("JT Storage"), and David B. Pearce ("Purchaser"), with
reference to the following:
RECITALS:
A. JT Storage desires to advance its growth, development and
financial success by providing additional incentives to its key executive
personnel by assisting them to acquire shares of JT Storage's common stock (the
"Common Stock"), and to benefit directly from JT Storage's growth, development
and financial success.
B. JT Storage desires to sell to Purchaser on the Effective Date,
and Purchaser desires to subscribe for and purchase from JT Storage at such
time, certain shares of Common Stock as set forth in this Agreement.
C. In order to induce JT Storage to sell such shares, Purchaser
desires to have such shares subject to the restrictions and interests created by
this Agreement.
AGREEMENT:
NOW, THEREFORE, in consideration of the foregoing recitals and mutual
covenants and conditions contained herein, the parties agree as follows:
1. Sale and Purchase of Stock. JT Storage hereby agrees to sell to
Purchaser, subject to the conditions and restrictions contained in this
Agreement, and Purchaser hereby agrees to purchase from JT Storage, 450,000
shares (the "Shares") of Common Stock at a price of $.25 per Share for an
aggregate purchase price of $112,500 (the "Purchase Price"). Purchaser shall pay
$22,500 of the Purchase Price by personal check payable to JT Storage and shall
issue a secured promissory note attached hereto as Exhibit A (the "Note") to JT
Storage for $90,000, constituting the balance of the Purchase Price. The Note
shall be secured by a pledge of the Shares, in conjunction with which Purchaser
shall execute a Stock Pledge Agreement (the "Pledge Agreement") attached hereto
as Exhibit B. The check, Note and Pledge Agreement, Joint Escrow Instructions
attached hereto as Exhibit C (the "Escrow Instructions"), and two copies of a
Stock Assignment Separate from Certificate (the "Stock Assignment")
attached hereto as Exhibit D shall be delivered to JT Storage on the Effective
Date.
2. Vesting. 253,125 of the Shares purchased pursuant to Section 1
hereof shall be deemed vested immediately, with the 196,875 balance of the
Shares vesting over a four-year period following June 15, 1995 (the "Vesting
Commencement Date") in forty-two equal monthly installments of 4,687-1/2 shares
per month as of January 15, 1996 and thereafter on the fifteenth day of each
successive month through and until June 15, 1999. JT Storage's repurchase option
as described in Section 4 hereof shall be limited to those Shares which have not
so vested (herein referred to as "Unvested Shares") in accordance with this
Section 2 at the time of termination of the Purchaser's employment with JT
Storage. Accordingly, such repurchase right shall not apply to any Shares which
have vested (herein referred to as "Vested Shares") as of the time of
termination of Purchaser's employment with JT Storage.
3. Restriction on Transfer of the Unvested Shares. Except as
otherwise specifically provided herein, Purchaser may not sell, transfer,
assign, pledge, hypothecate or otherwise dispose of any of the Unvested Shares,
or any right or interest therein. Any purported sale, transfer (including
involuntary transfers initiated by operation of legal process), hypothecation or
disposition of any of the Unvested Shares or any right or interest therein,
except in strict compliance with the terms and conditions of this Agreement,
shall be null and void. Vested Shares not required to remain pledged with JT
Storage pursuant to the Pledge Agreement shall not be subject to the
restrictions on transfer set forth in this Section 3.
4. Repurchase Option Upon Termination.
(a) JT Storage's Repurchase Option. In the event that
Purchaser's employment by JT Storage terminates for any reason (including,
without limitation, death, disability, retirement, voluntary or involuntary
resignation or dismissal, with or without cause) prior to the fourth anniversary
of the Vesting Commencement Date, JT Storage or its nominee(s) shall have the
right and option (the "Repurchase Option") to purchase from Purchaser all or any
portion of the Unvested Shares for a period of 60 days after the date of such
termination (the "Termination Date"). The amount of Unvested Shares shall be
determined as of the Termination Date.
(b) Repurchase Price Under Repurchase Option. The purchase price
for each Share to be purchased pursuant to the Repurchase Option (the
"Repurchase Price") shall be $.25 per
2.
Share. The Company may apply unpaid amounts owing under the Note against the
Repurchase Price.
(c) Exercise of Repurchase Option. The Repurchase Option shall
be exercised by JT Storage or its nominee(s) by delivery, within the 60-day
period specified in Section 4(a) above, to Purchaser of (i) a written notice
specifying the number of Shares to be purchased and (ii) a check in the amount
of the Repurchase Price, calculated as provided in this Section 4, for all
Shares to be purchased.
5. Dividends, Splits and Certain Reorganizations. If, from time to
time during the term of this Agreement:
(a) There is any stock dividend or liquidating dividend of cash
and/or property, stock split or other change in the character or amount
of any of the outstanding securities of JT Storage; or
(b) There is any consolidation, merger or sale of all, or
substantially all, of the assets of JT Storage;
then, in such event, any and all new, substituted or additional securities or
other property to which Purchaser is entitled by reason of Purchaser's ownership
of Shares shall be immediately subject to this Agreement and be included in the
word "Shares" (as either Vested Shares or Unvested Shares, as appropriate) for
all purposes with the same force and effect as the Shares presently subject to
this Agreement. All such securities or other property so included in the word
"Shares" shall be delivered to the Escrow Agent (as hereinafter defined) and
held pursuant to the Escrow Instructions in accordance with Section 6 hereof.
While the total Repurchase Price pursuant to the Repurchase Option shall remain
the same after each such event, the Repurchase Price per Share upon exercise of
the Repurchase Option shall be appropriately adjusted, as necessary.
3.
6. Escrow. In the event the Note is repaid prior to the termination
of the Repurchase Option and the certificates representing Unvested Shares are
released pursuant to the Pledge Agreement, as security for the faithful
performance of the terms of this Agreement and to insure the availability for
delivery of the Unvested Shares upon exercise of the Repurchase Option herein
provided for, Purchaser agrees to deliver to, and deposit with, the Secretary of
JT Storage, or such other person designated by JT Storage (the "Escrow Agent"),
as the Escrow Agent in this transaction, two copies of the Stock Assignment duly
endorsed (with date and number of shares blank), together with the certificate
or certificates evidencing the Unvested Shares. Said documents are to held by
the Escrow Agent and delivered by the Escrow Agent pursuant to the Escrow
Instructions.
7. Permitted Transfers. Purchaser may, at any time or times, transfer
any or all of the Unvested Shares only: (a) inter vivos to Purchaser's spouse or
issue, or to a trust for their benefit, (b) upon Purchaser's death, to any
person in accordance with the laws of descent and/or testamentary distribution
(such persons described in clauses (a) and (b)
4.
hereof are collectively referred to herein as "Permitted Transferee"), provided,
however, that such Unvested Shares shall not be transferred until the Permitted
Transferee executes a valid undertaking to JT Storage to the effect that the
Unvested Shares so transferred shall thereafter remain subject to all of the
provisions of this Agreement (including the Repurchase Option in the event
Purchaser's employment with JT Storage is terminated for any reason prior to the
fifth anniversary of the Vesting Commencement Date) as though the Permitted
Transferee were a party to this Agreement, bound in every respect in the same
way as Purchaser. Vested Shares not required to remain pledged with JT Storage
pursuant to the Pledge Agreement shall not be subject to the restrictions on
transfer set forth in this Section 7.
8. Rights as Shareholder. Subject to compliance with the provisions
of this Agreement and of the Pledge Agreement, Purchaser shall exercise all
rights and privileges of the registered holder of the Shares while they are held
by JT Storage pursuant to the Pledge Agreement or the Escrow Instructions, and
shall be entitled to receive any dividend or other distribution thereof;
provided, however, that any dividends or distributions with respect to the
Shares in the form of shares of capital stock of JT Storage (whether by way of
stock dividend, stock split or recapitalization) shall be subject to this
Agreement, the Pledge Agreement and the Escrow Instructions.
9. Investment Representations. Purchaser represents and warrants to
JT Storage as follows:
(a) Purchaser's Own Account. Purchaser is acquiring the Shares
for Purchaser's own account and not with a view to or for sale in connection
with any distribution of the Shares.
(b) Access to Information. Purchaser (i) is familiar with the
business of JT Storage, (ii) has had an opportunity to discuss with
representatives of JT Storage the condition of any prospects for the continued
operation and financing of JT Storage and such other matters as Purchaser has
deemed appropriate in considering whether to invest in the Shares and (iii) has
been provided access to all available information about JT Storage requested by
Purchaser.
(c) Shares Not Registered. Purchaser understands that the
Shares have not been registered under the Act or registered or qualified under
the securities laws of any state and that Purchaser may not sell or otherwise
transfer the Shares unless they are subsequently registered under the Act and
registered or qualified under applicable state securities laws,
5.
or unless an exemption is available which permits sale or other transfer without
such registration and qualification.
10. Underwriters' Lock-Up. The Purchaser agrees that, in connection
with any underwritten offering of Common Stock of JT Storage pursuant to a
registration statement under the Securities Act of 1933, the Purchaser shall
withhold from the market any or all of the Shares for a period, not to exceed
one hundred and eighty (180) days, which the managing underwriter reasonably
determines is necessary in order to effect the underwritten public offering.
11. No Contract of Employment. Purchaser acknowledges and agrees that
this Agreement shall not be construed to give Purchaser any right to be retained
in the employ of JT Storage, and that the right and power of JT Storage to
dismiss or discharge Purchaser (with or without cause) is strictly reserved.
12. Miscellaneous.
(a) Legends on Certificates. Any and all certificates now or
hereafter issued evidencing the Shares shall have endorsed upon them a legend
substantially as follows:
"THE SECURITIES EVIDENCED BY THIS CERTIFICATE ARE SUBJECT TO
RESTRICTIONS UPON TRANSFER AND A PURCHASE OPTION IN FAVOR OF
THE ISSUER AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED,
PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF, EXCEPT IN
ACCORDANCE WITH THE TERMS AND CONDITIONS OF THAT CERTAIN
RESTRICTED STOCK PURCHASE AGREEMENT DATED AS OF JANUARY 2,
1996 BY AND BETWEEN JT STORAGE, INC., A DELAWARE CORPORATION,
AND DAVID B. PEARCE, A COPY OF WHICH AGREEMENT IS ON FILE AT
THE PRINCIPAL OFFICE OF JT STORAGE."
Such certificates shall also bear such legends and shall be subject to such
restrictions on transfer as may be necessary to comply with all applicable
federal and state securities laws and regulations.
(b) Further Assurances. Each party hereto agrees to perform any
further acts and execute and deliver any document which may be reasonably
necessary to carry out the intent of this Agreement.
(c) Binding Agreement. This Agreement shall bind and inure to
the benefit of the successors and assigns of JT
6.
Storage and the personal representatives, heirs and legatees of Purchaser.
(d) Other Restrictions on Transfers. The restrictions on
transfer set forth in this Agreement are in addition to any and all restrictions
imposed pursuant to any applicable state or federal law or regulation.
(e) Notices. Any notice required or permitted to be given
pursuant to this Agreement shall be in writing and shall be deemed given upon
personal delivery or, if mailed, upon the expiration of 48 hours after mailing
by any form of United States mail requiring a return receipt, addressed (i) to
Purchaser at the address set forth on the signature page hereof and (ii) to JT
Storage, Inc. at 166 Baypointe Parkway, San Jose, California 95134. A party may
change its address by giving written notice to the other parties setting forth
the new address for the giving of notices pursuant to this Agreement.
(f) Amendments. This Agreement may be amended only by the
written agreement and consent of the parties hereof.
(g) Governing Law. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of California without regard
to the conflicts of laws rules thereof.
(h) Disputes. In the event of any dispute among the parties
arising out of this Agreement, the prevailing party shall be entitled to recover
from the nonprevailing party the reasonable expenses of the prevailing party,
including, without limitation, reasonable attorneys' fees.
(i) Entire Agreement. This Agreement, including the agreements
referred to herein, constitutes the entire agreement and understanding among the
parties pertaining to the subject matter hereof and supersedes any and all prior
agreements, whether written or oral, relating thereto.
(j) Headings. Introductory headings at the beginning of each
section of this Agreement are solely for the convenience of the parties and
shall not be deemed to be a limitation upon, or description of, the contents of
any such section.
(k) Counterparts. This Agreement may be executed in
counterparts, both of which, when taken together, shall constitute one and the
same instrument.
7.
IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement as of the day and year first above written.
JT STORAGE:
JT STORAGE, INC.,
a Delaware corporation
By:
-----------------------------------
David T. Mitchell, President
and Chief Executive Officer
PURCHASER:
/s/ David Pearce
--------------------------------------
David B. Pearce
Address: 20932 Hidden View Lane
Saratoga, CA 95070
8.
EXHIBIT A
SECURED PROMISSORY NOTE
$90,000 January 2, 1996
FOR VALUE RECEIVED, the undersigned ("Borrower") hereby promises to pay
to JT Storage, Inc., a Delaware corporation ("Payee"), the principal sum of
Ninety Thousand Dollars ($90,000), together with interest at 5.91% per annum,
compounded annually, on the unpaid balance of such principal amount from the
date hereof. Principal payments of $22,500 plus all accrued interest hereon
shall be paid in four installments on each of the first four anniversary dates
hereof.
Payments of principal and interest on this Secured Promissory Note
(this "Promissory Note") shall be made in legal tender of the United States of
America and shall be made at the office of Payee at 166 Baypointe Parkway, San
Jose, California 95134 or at such other place as Payee shall have designated in
writing to Borrower. If the date set for any payment on this Promissory Note is
a Saturday, Sunday or legal holiday, then such payment shall be due on the next
succeeding business day.
As of the date hereof, Borrower has purchased 450,000 shares (the
"Shares") of the common stock of Payee, pursuant to the terms of that certain
Restricted Stock Purchase Agreement dated as of January 2, 1996 by and between
Borrower and Payee. This Promissory Note shall be secured by the Shares as
provided in that certain Stock Pledge Agreement (the "Pledge Agreement") of even
date herewith by and between Payee and Borrower.
The principal of, and accrued interest on, this Promissory Note may be
prepaid at any time, in whole or in part, without premium or penalty.
In the event Borrower shall (i) fail to make complete payment of any
installment of principal or accrued interest when due under this Promissory Note
or (ii) commit a breach of, or default under, the Pledge Agreement, Payee may
accelerate this Promissory Note and declare the entire unpaid principal amount
of this Promissory Note and all accrued and unpaid interest thereon to be
immediately due and payable and, thereupon, the unpaid principal amount and all
such accrued and unpaid interest shall become and be immediately due and
payable, without notice of default, presentment or demand for payment, protest
or notice of nonpayment or dishonor or other notices or demands of any kind (all
of which are hereby expressly waived by Borrower). The failure of Payee to
accelerate this Promissory Note shall not constitute a waiver of any of Payee's
rights under this Promissory Note as long as Borrower's default under this
Promissory Note or breach of or default under the Pledge Agreement continues.
The provisions of this Promissory Note shall be governed by, and
construed in accordance with, the laws of the State of California without regard
to the conflicts of law rules thereof. In the event that Payee is required to
take any action to collect or otherwise enforce payment of this Promissory Note,
Borrower agrees to pay such attorneys' fees and court costs as Payee may incur
as a result thereof, whether or not suit is commenced.
IN WITNESS WHEREOF, this Promissory Note has been duly executed and
delivered by Borrower on the date first above written.
BORROWER:
/s/ David Pearce
--------------------------------------
David B. Pearce
2.
EXHIBIT B
STOCK PLEDGE AGREEMENT
THIS STOCK PLEDGE AGREEMENT (this "Pledge Agreement") is made as of
January 2, 1996 by and between David B. Pearce, as pledgor ("Pledgor"), and JT
Storage, Inc., a Delaware corporation, as pledgee ("Pledgee"), with reference to
the following:
RECITALS:
A. Pursuant to that certain Restricted Stock Purchase Agreement (the
"Purchase Agreement") of even date herewith, by and between Pledgor and Pledgee,
Pledgor has agreed to purchase 450,000 shares (the "Shares") of the common stock
of Pledgee.
B. Pursuant to the terms of that certain Secured Promissory Note in
the original principal amount of $90,000 (the "Note") of even date herewith
delivered by Pledgor to Pledgee, Pledgor has agreed to make payments of
principal and interest to Pledgee as provided in the Note.
C. Pursuant to the terms of the Note, Pledgor shall execute this
Pledge Agreement to assure compliance with the terms and conditions of the Note.
D. In order to induce Pledgee to make the loan evidenced by the Note,
Pledgor desires to have the Shares held subject to this Pledge Agreement.
AGREEMENT:
NOW, THEREFORE, in consideration of the foregoing recitals and the
mutual covenants and conditions contained herein, the parties hereto agree as
follows:
1. Grant of Security Interest. Pledgor hereby grants to Pledgee a
security interest in the Shares, pledges and hypothecates the Shares to Pledgee,
and deposits the certificates evidencing the Shares (the "Certificates") with
Pledgee as collateral security for the payment by Pledgor of the Note and the
full, faithful and timely performance by Pledgor of all of its other obligations
under the Note and this Pledge Agreement. The Certificates, together with a
stock assignment duly executed in blank with signatures appropriately guaranteed
or witnessed, are being retained by Pledgee, as the pledgeholder for the Shares.
Notwithstanding the foregoing, the Pledgee shall, from time to time at the
request of the Pledgor, cause to be delivered to the Pledgor one or more
certificates which, together with all other such certificates theretofore
delivered pursuant to this sentence, evidences that portion of the Shares which
is equal to the portion of the full purchase price for all of the Shares then
actually paid to the Pledgee by the Pledgor (i.e., the portion determined by
adding the cash payment amount set forth in Section 1 of the Purchase Agreement
to all principal payments on the Note which have theretofore been made by the
Pledgor at the time of such request), subject in all cases to the provisions of
Section 7 of the Purchase Agreement requiring the continued escrow of Unvested
Shares.
2. Representations and Warranties of Pledgor. Pledgor represents and
warrants to Pledgee that the Shares are free and clear of all claims, mortgages,
pledges, liens and other encumbrances of any nature whatsoever, except any
restriction upon sale and distribution imposed by the Securities Act of 1933, as
amended (the "Act"), or applicable state securities laws, and by the
Subscription Agreement.
3. Voting of Shares in the Absence of Default. So long as there shall
exist no Event of Default as provided in Section 9 hereof, Pledgor shall be
entitled to exercise, as Pledgor deems proper but in a manner not inconsistent
with the terms hereof, Pledgor's rights to voting power with respect to the
Shares. Pledgor shall not be entitled to vote the Shares at any time that there
exists an Event of Default as provided in Section 9 hereof.
4. Dividends and Other Distributions. So long as there shall exist no
Event of Default as provided in Section 9 hereof, Pledgor shall be entitled to
receive any dividend or other distribution with respect to the Shares except as
provided in Section 5 of this Pledge Agreement. If there exists an Event of
Default, such dividend or distribution shall be delivered to Pledgee to be held
as additional collateral security under this Pledge Agreement.
5. Stock Dividends. In the event of any distribution in shares of
capital stock of Pledgee (whether by way of stock dividend, stock split,
recapitalization or otherwise) with respect to the Shares, the shares to be
distributed to Pledgor shall be delivered to Pledgee, together with an
appropriately executed stock certificate and an appropriately executed stock
power, to be held as additional collateral security under this Pledge Agreement.
6. Pledgee's Duties. So long as Pledgee exercises reasonable care
with respect to the Shares in its possession, Pledgee shall have no liability
for any loss or damage to such Shares, and in no event shall Pledgee have
liability for any diminution in value of the Shares occasioned by economic or
market conditions or events. Pledgee shall be deemed to have exercised
reasonable care within the meaning of the preceding
2.
sentence if the Shares in its possession are accorded treatment substantially
equal to that which Pledgee accords its own property, it being understood that
Pledgee shall not have any responsibility under this Pledge Agreement for (a)
ascertaining or taking action with respect to calls, conversions, exchanges,
maturities, tenders or other matters relating to the Shares, whether or not
Pledgee has or is deemed to have knowledge of such matters, or (b) taking any
necessary steps to preserve rights against any person or entity with respect to
the Shares.
7. Sale of Collateral. Upon the occurrence of any Event of Default as
provided in Section 9 hereof, Pledgee shall have all the rights and remedies of
a secured party on default under the Uniform Commercial Code in effect in the
State of California at that time and also may, without notice, except as
specified below, at its option, sell, resell, assign, transfer and deliver all
or any part of the Shares, for cash or on credit for future delivery. Upon such
sale, Pledgee, unless prohibited by a provision of any applicable statute, may
purchase all or any part of the Shares being sold, free from, and discharged of,
all trusts, claims, rights of redemption and equities of Pledgor. If the
proceeds of any sale of the Shares shall be insufficient to pay all amounts due
under the Note, including collection costs and expenses of sale, Pledgor shall
remain obligated and liable for any deficiency with respect thereto. If, at any
time when Pledgee shall determine to exercise its rights to sell all or any part
of the Shares pursuant to this Section 7, such Shares, or the part thereof to be
sold, shall not be effectively registered under the Act as then in effect or any
similar statute then in force, subject to the provisions of Section 8 hereof,
Pledgee, in its sole and absolute discretion, is hereby expressly authorized to
sell such Shares, or any part thereof, by private sale in such manner and under
such circumstances as Pledgee may deem necessary or advisable in order that such
sale may be effected legally without such registration. Without limiting the
generality of the foregoing, Pledgee, in its sole and absolute discretion, may
approach and negotiate with a restricted number of potential purchasers to
effect such sale or restrict such sale to a purchaser or purchasers who will
represent and agree that such purchaser or purchasers are purchasing for its or
their own account, for investment only, and not with a view to the distribution
or sale of such Shares or any part thereof. Any such sale shall be deemed to be
a sale made in a commercially reasonable manner within the meaning of the
California Uniform Commercial Code, and Pledgor hereby consents and agrees that
Pledgee shall incur no responsibility or liability for selling all or any part
of the Shares at a price which is not unreasonably low, notwithstanding the
possibility that a substantially higher price might be realized if the sale were
public. Pledgee shall not be obligated to make any sale of the
3.
Shares regardless of notice of sale having been given. Pledgee may adjourn any
public or private sale from time to time by announcement at the time and place
fixed therefor, and any such sale may, without further notice, be made at the
time and place to which it was so adjourned.
8. Redemption of Collateral. Notwithstanding any other provision of
this Pledge Agreement, upon the occurrence of an Event of Default as provided in
Section 9 hereof, Pledgee shall give Pledgor written notice of the time and
place of any public sale or of the time on or after which any private sale or
other disposition is to be made at least ten days before the date fixed for any
public sale or the day on or after which any private sale or other disposition
is to be made. Pledgor agrees that, to the extent notice of sale shall be
required by law, such ten days' notice shall constitute reasonable notification.
This notice shall also specify the aggregate outstanding monetary obligations of
Pledgor to Pledgee at the date of such notice (the "Total Obligation"). At any
time during such ten-day period, Pledgor shall have the right to redeem the
Shares by the payment by certified or bank cashier's check of an amount equal to
the Total Obligation.
9. Events of Default. At the option of Pledgee, the principal balance
of the Note and all accrued and unpaid interest thereon, and all other
obligations of Pledgor to Pledgee thereunder and hereunder, shall become and be
immediately due and payable, without notice of default, presentment or demand
for payment, protest or notice of nonpayment or dishonor or other notices or
demands of any kind (all of which are hereby expressly waived by Pledgor), upon
the occurrence of any of the events set out below ("Events of Default"):
(a) Pledgor shall fail to make complete payment or prepayment
of principal or interest when due in accordance with the terms of the Note; or
(b) Pledgor shall commit a breach or default of any of his
obligations under this Pledge Agreement.
10. Termination. This Pledge Agreement shall terminate upon the
payment in full of the principal amount and all accrued interest thereon under
the Note. Upon termination of this Pledge Agreement, Pledgor shall be entitled
to the return of the Certificates and any other collateral security then held by
Pledgee pursuant to Section 4 or Section 5 of this Pledge Agreement.
11. Cumulation of Remedies; Waiver of Rights. The remedies provided
herein in favor of Pledgee shall not be deemed
4.
exclusive but shall be cumulative and shall be in addition to all of the
remedies in favor of Pledgee existing at law or in equity. Nothing in this
Pledge Agreement shall require Pledgee to proceed against or exhaust its
remedies against the Shares before proceeding against Pledgor or executing
against any other security or collateral securing performance of Pledgor's
obligations to Pledgee under the Note or this Pledge Agreement. No delay on the
part of Pledgee in exercising any of its options, powers or rights, or the
partial or single exercise thereof, shall constitute a waiver thereof.
12. Execution of Endorsements, Assignments, Etc. Upon the occurrence
of an Event of Default as provided in Section 9 hereof, Pledgee shall have the
right for and in the name, place and stead of Pledgor to execute endorsements,
assignments or other instruments of conveyance or transfer with respect to all
or any of the Shares and any other shares of the capital stock of Pledgee or
other property which is held by Pledgee as collateral security pursuant to
Section 4 or Section 5 of this Pledge Agreement.
13. Miscellaneous.
(a) Further Documents. Pledgor agrees to execute, acknowledge
and deliver any documents or instruments which Pledgee may request in order to
better evidence or effectuate this Pledge Agreement and the transactions
contemplated hereby.
(b) Binding Agreement. This Pledge Agreement shall bind and
inure to the benefit of the parties hereto and their respective successors,
assigns, personal representatives, heirs and legatees. Notwithstanding the
foregoing, Pledgor may not assign any of his rights or delegate any of his
duties hereunder without the prior written consent of Pledgee. The parties
hereto acknowledge that Pledgee shall have the right to assign, with absolute
discretion, any or all of its rights and obligations under this Pledge Agreement
to any bank(s) or lending institution(s) as collateral security.
(c) Notice. Any notice required or permitted to be given
pursuant to this Pledge Agreement shall be in writing and shall be deemed given
upon personal delivery, or if mailed, upon the expiration of 48 hours after
mailing by any form of United States mail requiring a return receipt, addressed
(i) to Pledgor, at the address set forth on the signature page hereof and (ii)
to Pledgee at 166 Baypointe Parkway, San Jose, California 95134. A party may
change its address by giving written notice to the other party setting forth the
new address for the giving of notices pursuant to this Pledge Agreement.
5.
(d) Amendments. This Pledge Agreement may be amended only by
the written agreement and consent of the parties hereto.
(e) Governing Law. This Pledge Agreement shall be governed by,
and construed in accordance with, the laws of the State of California, without
regard to the conflicts of laws rules thereof.
(f) Disputes. In the event of any dispute between the parties
arising out of this Pledge Agreement, the prevailing party shall be entitled to
receive from the nonprevailing party the reasonable expenses of the prevailing
party including, without limitation, reasonable attorneys' fees.
(g) Entire Agreement. This Pledge Agreement, including the
agreements referred to herein, constitutes the entire agreement and
understanding among the parties pertaining to the subject matter hereof and
supersedes any and all prior agreements, whether written or oral, relating
thereto.
(h) Headings. Introductory headings at the beginning of each
section of this Pledge Agreement are solely for the convenience of the parties
and shall not be deemed to be a limitation upon, or description of, the contents
of any such section and shall not affect the meanings or construction of the
terms and provisions of this Pledge Agreement.
IN WITNESS WHEREOF, the parties hereto have duly executed this Pledge
Agreement as of the day and year first above written.
PLEDGOR:
/s/ David Pearce
--------------------------------------
David B. Pearce
Address: 20932 Hidden View Lane
Saratoga, CA 95070
PLEDGEE:
JT STORAGE, INC.,
a Delaware corporation
By:
-----------------------------------
David T. Mitchell, President
and Chief Executive Officer
166 Baypointe Parkway
San Jose, California 95134
6.
EXHIBIT C
JOINT ESCROW INSTRUCTIONS
Secretary January 2, 1996
JT Storage, Inc.
166 Baypointe Parkway
San Jose, California 95134
Dear Sir:
As Escrow Agent for both JT Storage, Inc., a Delaware corporation
("Corporation"), and the undersigned purchaser of stock of the Corporation
("Purchaser"), you are hereby authorized and directed to hold the documents,
including stock certificates and stock assignments, delivered to you pursuant to
the terms of that certain Restricted Stock Purchase Agreement (the "Agreement"),
dated as of even date, to which a copy of these Joint Escrow Instructions is
attached as Exhibit C, in accordance with the following instructions:
1. In the event the Corporation and/or any nominee or assignee of the
Corporation (referred to collectively for convenience herein as the
"Corporation") exercises the Repurchase Option set forth in the Agreement, the
Corporation shall give to Purchaser 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 Corporation. Purchaser and
the Corporation hereby irrevocably authorize and direct you to close the
transaction contemplated by such notice in accordance with the terms of said
notice.
2. At the closing, you are directed to (a) date the stock assignments
necessary for the transfer in question, (b) fill in the number of shares being
transferred and (c) deliver same, together with the certificate evidencing the
shares of stock to be transferred, to the Corporation against the simultaneous
delivery to you of the purchase price (by check) for the number of shares of
stock being purchased pursuant to the exercise of the Repurchase Option.
3. Purchaser irrevocably authorizes the Corporation 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.
Purchaser does
1.
hereby irrevocably constitute and appoint you as his or her 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. Subject to the provisions of this
paragraph 3, Purchaser shall exercise all rights and privileges of a shareholder
of the Corporation while the shares of stock are held by you.
4. From time to time upon written request of the Purchaser, you will
deliver to Purchaser a certificate or certificates representing so many shares
of stock as are not then subject to the Corporation's Repurchase Option and are
not required to remain pledged with JT Storage pursuant to the Pledge Agreement.
Within 30 days after the expiration of the 60-day period referred to in
paragraph 3 of the Agreement, you will deliver to Purchaser a certificate or
certificates representing the aggregate number of shares sold and issued
pursuant to the Agreement and not purchased by the Corporation or its assignees
pursuant to exercise of the Repurchase Option.
5. Notwithstanding the foregoing paragraphs 1, 2, 3 and 4, your
duties and obligations as Escrow Agent shall not commence until such time as the
certificates representing the shares of stock of the Corporation subject to
these instructions pursuant to the Agreement together with two duly executed
stock assignments separate from certificate are delivered to you. It is also
understood and agreed that you may, on behalf of the Corporation, concurrent
with your duties hereunder, hold such certificates and stock assignments as
collateral for Purchaser's obligations pursuant to a Secured Promissory Note of
even date herewith in the aggregate principal amount of $60,000.
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
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 Purchaser while acting in good faith and in the exercise of
your own good judgment, 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
2.
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 outlawing of any rights under the
statute of limitations 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 to advise you properly in connection with your
obligations hereunder, may rely upon the advice of such counsel, and may pay
such counsel reasonable compensation therefor. The Corporation shall be
obligated to reimburse you for your expenses in this connection.
12. Your responsibilities as Escrow Agent hereunder shall terminate if
you shall cease to be Secretary of the Corporation or if you shall resign by
written notice to each party. In the event of any such termination, the
Corporation shall appoint a successor Escrow 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 shares of
stock held by you hereunder, you are authorized and directed to retain in your
possession without liability to anyone all or any part of said shares 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 arbitrators or 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.
15. Any notice required or permitted to be given hereunder shall be in
writing and shall be deemed given upon personal delivery, if mailed, or upon the
expiration of 48 hours after mailing by any form of United States mail requiring
a return receipt, addressed to each of the other parties thereunto
3.
entitled at the following addresses, or at such other addresses as a party may
designate by ten days' advance written notice to each of the other parties
hereto.
CORPORATION: JT Storage, Inc.
166 Baypointe Parkway
San Jose, California 95134
PURCHASER: Kenneth D. Wing
Address: 325 Kamaur Lane
Santa Cruz, CA 95060
ESCROW AGENT: Secretary of JT Storage
166 Baypointe Parkway
San Jose, California 95134
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.
Very truly yours,
JT Storage, Inc.,
a Delaware corporation
By:
-----------------------------------
David T. Mitchell, President
and Chief Executive Officer
PURCHASER:
/s/ David Pearce
--------------------------------------
David B. Pearce
ESCROW AGENT:
/s/ W. Virginia Walker
-----------------------------
W. Virginia Walker, Secretary
4.
EXHIBIT D
ASSIGNMENT SEPARATE FROM CERTIFICATE
FOR VALUE RECEIVED and pursuant to that certain Restricted Stock
Purchase Agreement and Stock Pledge Agreement, each dated as of January 2, 1996
by and between JT Storage, Inc., a Delaware corporation (the "Corporation"), and
the undersigned, David B. Pearce hereby sells, assigns and transfers unto
______________________________
___________________________________________________________ (______________)
shares of the common stock of the Corporation standing in the undersigned's name
on the books of the Corporation represented by Certificate No. ___ herewith,
and does hereby irrevocably constitute and appoint ____________________________
___________________________________ attorney to transfer the said stock on
the books of the Corporation with full power of substitution in the premises.
Dated: ____________________ [do not date]
/s/ David Pearce
--------------------------------------
David B. Pearce
Dates Referenced Herein
| Referenced-On Page |
|---|
| This ‘S-4’ Filing | | Date | | First | | Last | | | Other Filings |
|---|
| |  |
| | 6/15/99 | | 2 | | | | | None on these Dates |
| Filed on: | | 6/24/96 |
| | 1/15/96 | | 2 |
| | 1/2/96 | | 1 | | 21 |
| | 6/15/95 | | 2 |
| List all Filings |
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