Document:

Exhibit 10.10

First Amendment to Amended
Employment Agreement

 

 

                This First Amendment (this “Amendment”) to Amended Employment Agreement (the “Agreement”) is made and entered into this
11th day of December 2003, effective as of August 19, 2003, by and among
Peregrine Systems, Inc., a Delaware corporation (the “Company”) and Gary G. Greenfield (“Employee”).

 

Recitals

 

                R-1.         Company and Employee are parties to the Agreement,
which was made and entered into effective as of June 1, 2002.

 

                R-2.         Under the Agreement, Employee was
employed as President and Chief Executive Officer of the Company for a term to
continue until May 31, 2005.

 

                R-3.         On August 18, 2003, the Board of
Directors of the Company elected John Mutch as President and Chief Executive
Officer of the Company, as a result of which Employee was relieved of such
duties.

 

                R-4.         The Company desires to continue the
employment of Employee as a consultant for the period from August 19, 2003,
through November 17, 2003 (the “Consulting
Period”).

 

                Now, therefore, for good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the
parties agree as follows:

 

                1.             On August 18, 2003 the
(“Termination Date”), Employee was terminated as President and Chief Executive
Officer by the Company without “Cause” (the “Termination”).

 

                2.             The provisions of the Agreement are
modified, not modified, or not applicable as follows:

 

                                Section 1. Employment. During the
Consulting Period, the Company employs Employee as a consultant to provide such
services as reasonable agreed upon by the Company and Employee.

 

                                Section 3.
Compensation/Benefits.

 

                                                (A)
Base Salary. During the Consulting Period, Employee shall be paid a base
salary at the annual rate of Five Hundred Thousand Dollars ($500,000.00), payable
in installments as has been the Company’s practice, less required legal
deductions.

 

                                                (B)
Bonuses. Employee acknowledges that he has received all payments
provided for under Section 3(B)(i), (ii), and (iii) of the Agreement.

 

 

                                                                The
parties agree that the Company shall pay the Post-Chapter 11 Annual Target
Bonus provided for in Section 3(B)(iv) of the Agreement for the period from the
Plan Effective Date (August 7, 2003) through the Termination Date, which amount
is Five Thousand Four Hundred Seventy-Nine and 45/100 Dollars ($5,479.45).

 

                                                (C)
Benefits. Employee shall be entitled to the Benefits and the Welfare
Benefits during the Consulting Period, except that there shall not be any
vacation period during the Consulting Period. Within two (2) business days
following the execution of this Agreement by the Company, it shall pay
$36,537.05 to Employee for his accrued and unused vacation time.

 

                                                (D)
Share Options. In lieu of the provisions under Section 3(D) of the
Agreement, the parties agree that, as a result of the reorganization in
bankruptcy, Employee holds options to purchase 25,352 shares of common stock of
the Company. Such options may be exercised by Employee on or before the later
of (x) February 15, 2004, or (y) sixty (60) days after the Company’s Form
10K and Form 10Qs for the fiscal year ended June 30, 2003, are filed with the
Securities and Exchange Commission. The Company agrees that anytime prior to
exercise, the options may be transferred by Employee to charitable
organizations.

 

                                                (E) Restricted Shares. In
lieu of the provisions under Section 3(E) of the Agreement, it is agreed that
the number of Shares of the Company’s stock converted from Restricted Shares
(which are no longer restricted) held by Employee following the bankruptcy
reorganization is 45,070 shares, all of which are fully vested. The Company
will, within three (3) business days, direct Mellon Bank, as transfer agent, to
deliver to Employee a new certificate for such Shares without any restrictive
legend.

 

                                Section 4.
Expenses/Costs. The Company shall reimburse Employee for all
reasonable and necessary business expenses as provided for in Section 4 of the
Agreement for the Consulting Period, except that secretarial support and
miscellaneous office costs at Employee’s residence in Maryland shall be fixed
at Three Thousand Dollars ($3,000.00) for the Consulting Period. The parties
agree that no further Advance is required by the Company and there is no unused
portion of the Advance.

 

                                Without
limiting the Company’s obligation under Section 4 of the Agreement, as amended
above, the Company will promptly reimburse Employee for all legal fees and
reasonable expenses incurred by him in connection with this Amendment and in
connection with the deposition of Employee taken on September 12, 2003.

 

                                Section 5. No Setoffs. Section 5 of the
Agreement is not modified.

 

                                Section 6. Protection of the Company.

 

                                                (A) The
provisions of Section 6(A) of the Agreement shall apply through the expiration
of the Consulting Period.

 

2

 

                                                (B) The provisions of Section
6(B) of the Agreement are terminated.

 

                                Section 7.
Termination.

 

                                                (G) Termination
Pursuant to Sections 7(D), (E) or (F). The parties agree that Termination
is pursuant to Section 7(D) of the Agreement (Without Cause) as follows:

 

                                                                1.
Accrued Obligations. All accrued
obligations shall be paid promptly.

 

                                                                2.
Severance Payments. The severance
payment shall be Seven Hundred Fifty Thousand Dollars ($750,000.00), payable by
the Company in a lump sum on March 1, 2004.

 

                                                                3.
Welfare Benefits. The Welfare
Benefits shall be available to Employee for a period of eighteen (18) months
following the expiration of the Consulting Period.

 

                                                (H)
Outstanding Share Options; Rights. The provisions of the first paragraph
of Section 7(H) of the Agreement shall continue in effect, it being
acknowledged by the Company that all of the Outstanding Share Options have
vested.

 

                                                (I)
Post-Termination Non-Competition Restrictions. The provisions of Section
7(I) of the Agreement shall not apply, so that there are no restrictions upon
Employee with respect to the activities otherwise prohibited for a period of
twelve (12) months pursuant to clause (i) of Section 7(I) of the Agreement and,
accordingly, Section 7(I)(ii) of the Agreement is terminated.

 

                                Section 8. Additional Payments. Section 8
of the Agreement is not modified.

 

                                Section 9. Indemnification and Insurance.
The indemnity in favor of the Employee and an agreement for the Employee to be
covered by Directors and Officers insurance shall continue in effect in
accordance with their terms.

 

                                Section 10.
Miscellaneous.

 

                                                1.
The provisions of Sections 10(A), (B), (C), (D), (E), (F), (G) and (H) of the
Agreement are not modified.

 

                                                2.
(I) Survival. The provisions of Section 10(I) of the Agreement shall
continue in full force and effect with respect to the provisions of the
Agreement to the extent modified by this Amendment but, in any event, shall not
survive after two (2) years from the expiration of the Consulting Period.

 

3

 

                                                3.
Additional Provisions. The following are additional provisions:

 

                                                                (a)
Employee shall be allowed to keep the computer that was provided to him by the
Company. Employee has downloaded and delivered to Company materials requested
by the Company that are stored in such computer.

 

                                                                (b)
Company and Employee each hereby fully and forever release, acquit, waive, and
discharge the other of them from any and all causes of action, rights, claims,
counterclaims, demands, suits, proceedings, actions, and liabilities of any
nature whatsoever, whether known or unknown, presently existing or which may
hereafter arise, due in whole or in part to actions or omissions occurring
prior to the date of the Agreement which either of them ever had, now has, or
hereafter can, shall or may have against the other of them, but excluding all
claims that arise out of a breach in connection with the performance of the
obligations of either of them in favor of the other contained in the Agreement,
as modified by this Amendment.

 

                IN
WITNESS WHEREOF, this Amendment has been signed on this 19th day of December,
2003, effective as of August 19, 2003.

 

                                                                                COMPANY:

 

                                                                                Peregrine
Systems, Inc.

 

                                                                                By:  /s/ MARY LOU O’KEEFE

                                                                                       Mary Lou O’Keefe

 

                                                                                EMPLOYEE:

 

                                                                                /s/
GARY G. GREENFIELD

                                                                                Gary
G. Greenfield

 

 

4Exhibit
10.11

 

PEREGRINE
SYSTEMS, INC.

 

RESTRICTED
STOCK AGREEMENT

 

This Restricted Stock Agreement is
effective as of August 22, 2002 between Peregrine Systems, Inc., a Delaware
corporation (the “Company”), and Gary G. Greenfield (the “Grantee”).

 

I.              NOTICE OF RESTRICTED STOCK GRANT

 

	
  Grantee’s Name:

  	
  Gary G. Greenfield

  

 

You
have been granted restricted shares of the Common Stock of the Company
(“Restricted Shares”), subject to the terms and conditions of this Restricted
Stock Agreement, as follows:

 

	
  Date
  of Grant:

  	
  August
  22, 2002

  
	
   

  	
   

  
	
  Vesting
  Commencement Date:

  	
  June
  1, 2002

  
	
   

  	
   

  
	
  Total
  Number of Restricted Shares Granted:

  	
  1,600,000

  

 

Vesting Schedule and Forfeiture:

 

25% of
the total number of the Restricted Shares shall vest twelve months after the
Vesting Commencement Date, and l/36th of the total remaining number of the
Restricted Shares shall vest each month thereafter, provided that Restricted
Shares actually will vest on any such date only if the Grantee is a Service
Provider on such date.

 

If
your service terminates for any reason, then the Restricted Shares will be
forfeited to the extent that they have not vested before the termination date
and do not vest as a result of the termination. This means that the Restricted
Shares will immediately revert to the Company. No payment by the Company will
be due to Grantee for Restricted Shares that are forfeited.

 

Notwithstanding
anything to the contrary in this Restricted Stock Agreement, the vesting of the
Restricted Shares shall be accelerated to the same extent as the stock options,
as described in the Employment Agreement between you and the Company, dated
July 19, 2002.

 

Any
terms not defined in this Restricted Stock Agreement will be as defined in the
1994 Stock Plan, or if not in the 1994 Stock Plan, in the Employment Agreement.

 

 

II.            AGREEMENT

 

1.             Grant
of Restricted Shares. 
Peregrine Systems, Inc., a Delaware corporation (the “Company”), hereby
grants you the total number of Restricted Shares set forth in the Notice of
Grant. No payment is required for these Restricted Shares.

 

No Restricted Shares will be issued
pursuant to this Restricted Stock Agreement unless such issuance and such
exercise shall comply with Applicable Laws. Assuming such compliance, for
income tax purposes the Restricted Shares shall be considered transferred to
you on the date the risk of forfeiture lapses with respect to such Restricted
Shares unless you make a timely election under Section 83(b) of the Internal
Revenue Code in which case for income tax purposes the Restricted Shares shall
be considered transferred to you on the date they are delivered to you.

 

2.             Investment
Representations.  In connection with
the receipt of the Restricted Shares, you represent to the Company the
following:

 

(a)   You are receiving these
securities for investment for your 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 of 1933, as amended (the “Securities Act”).

 

(b)   You understand that the
securities 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 your investment intent as expressed herein. In this
connection, you understand that, in view of the Securities and Exchange
Commission (“Commission”), the statutory basis for such exemption may not be
present if your representations mean that your present intention is to hold
these securities for a minimum capital gains period under the tax statutes, for
a deferred sales, for a market rise, for a sale if the market docs not rise, or
for a year or any other fixed period in the future.

 

(c)   You further acknowledge and
understand that the securities must be held indefinitely unless they are
subsequently registered under the Securities Act or an exemption from such
registration is available. You further acknowledge and understand that the
Company is under no obligation to register the securities. You understand that
the certificate evidencing the securities will be imprinted with a legend which
prohibits the transfer of the securities unless they are registered or such
registration is not required in the opinion of counsel satisfactory to the
Company.

 

(d)   You further acknowledge and
understand that the issuance of the Restricted Shares hereunder satisfies in
full all of the Company’s obligations to issue shares to you to date.

 

2

 

 

3.             Non-Transferability
of Restricted Shares. 
The Restricted Shares may not be transferred in any manner by you during
the time period they remain subject to a risk of forfeiture. The terms of this
Restricted Stock Agreement shall be binding your executors, administrators,
heirs, successors, and assigns.

 

YOU ACKNOWLEDGE AND AGREE THAT THE VESTING OF RESTRICTED
SHARES IS EARNED ONLY BY CONTINUING CONSULTANCY OR EMPLOYMENT AT THE WILL OF
THE COMPANY (NOT THROUGH THE ACT OF BEING HIRED, OR ACQUIRING RESTRICTED SHARES
HEREUNDER). YOU FURTHER ACKNOWLEDGE AND AGREE THAT NOTHING IN THIS RESTRICTED
STOCK AGREEMENT, SHALL CONFER UPON YOU ANY RIGHT WITH RESPECT TO CONTINUATION
OF EMPLOYMENT OR CONSULTANCY BY THE COMPANY, NOR SHALL IT INTERFERE IN ANY  WAY WITH YOUR RIGHT OR THE COMPANY’S RIGHT TO
TERMINATE YOUR EMPLOYMENT OR CONSULTANCY AT ANY TIME, WITH OR WITHOUT CAUSE.

 

4.             Stock
Certificate Legends. 
The share certificate evidencing the Restricted Shares issued hereunder
shall be endorsed with the following legends.

 

a)     THE
RESTRICTED SHARES REPRESENTED BY THIS CERTIFICATE 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
SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE
SECURITIES ACT OF 1933.

 

b)    THE RESTRICTED SHARES
REPRESENTED HEREBY ARE SUBJECT TO A RESTRICTION ON TRANSFER PURSUANT TO THE
PROVISIONS OF AN AGREEMENT BETWEEN THE COMPANY AND THE HOLDER OF SUCH RESTRICTED
SHARES, AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED EXCEPT IN COMPLIANCE WITH
THE TERMS OF SUCH AGREEMENT.

 

c)     Any legend required by any
applicable state securities laws.

 

5.             Adjustment
for Stock Split.  All references to
the number of Restricted Shares shall be appropriately adjusted to reflect any
stock split, stock dividend, or similar change in the Restricted Shares which
may be made by the Company after date of this Restricted Stock Agreement.

 

6.              Tax
Consequences.  You have reviewed
with your own tax advisors the federal, state, local, and foreign tax
consequences of this investment and the transactions

 

3

 

contemplated by this Restricted Stock Agreement. You are relying solely
on such advisors and not on any statements or representations of the Company or
any of its agents. You understand that you (and not the Company) shall be
responsible for your own tax liability that may arise as a result of this
investment or the transactions contemplated by this Restricted Stock Agreement.

 

7.             General
Provisions.

 

(a)   This Restricted Stock Agreement
shall be governed by the laws of the State of California. This Restricted Stock
Agreement represents the entire agreement between the parties with respect to
the purchase of Restricted Shares by you and may only be modified or amended in
writing signed by you and the Company.

 

(b)   Any notice, demand, or request
required or permitted to be given by either the Company or you pursuant to the
terms of this Restricted Stock Agreement shall be in writing and shall be
deemed given when delivered personally or deposited in the U.S. mail, First
Class with postage prepaid, and addressed to the parties at the addresses of
the parties set forth at the end of this Restricted Stock Agreement or such
other address as a party may request by notifying the other in writing.

 

(c)   The rights and benefits of the
Company under this Restricted Stock Agreement shall be transferable to any one
or more persons or entities, and all covenants and agreements hereunder shall
inure to the benefit of, and be enforceable by the Company’s successors and
assigns. Your rights and obligations under this Restricted Stock Agreement may
only be assigned with the prior written consent of the Company.

 

(d)   Either party’s failure to
enforce any provision or provisions of this Restricted Stock Agreement shall
not in any way be construed as a waiver of any such provision or provisions,
nor prevent that party thereafter from enforcing each and every other provision
of this Restricted Stock Agreement. The rights granted both parties herein are
cumulative and shall not constitute a waiver of either party’s right to assert
all other legal remedies available to it under the circumstances.

 

(e)   You agree upon request to execute
any further documents or instruments necessary or desirable to carry out the
purposes or intent of this Restricted Stock Agreement.

 

(f)    This Restricted Stock Agreement
may be executed in any number of counterparts, each of which shall be an original
and all of which together shall constitute one instrument.

 

You
have reviewed this Restricted Stock Agreement in its entirety, has had an
opportunity to obtain the advice of counsel prior to executing this Restricted
Stock

 

4

 

Agreement and fully understands all provisions of the Agreement. You
further agree to notify the Company upon any change in the residence address
indicated below.

 

	
  GRANTEE

  	
  PEREGRINE SYSTEMS, INC.

  
	
   

  	
  a
  Delaware corporation

  
	
  Gary G. Greenfiled

  	
   

  	
   

  
	
  Print
  Name of Grantee

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Gary G. Greenfield

  	
   

  	
  /s/ Gary G. Greenfield

  	
   

  
	
  Signature of Grantee

  	
  Gary
  G. Greenfield

  
	
   

  	
  Chief
  Executive Officer

  
	
   

  	
   

  
	
  9800 Bent Cross Drive

  	
   

  	
   

  	
  Kathy Vizas

  
	
   

  	
   

  
	
  Potsmac, MD 20854

  	
   

  	
   

  
	
  Residential
  Address

  	
   

  
					

 

5

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