Document:

Offer Letter Agreement-David Limp

 Exhibit 10.7 
  
 June 10, 2003 
  
 Mr. David Limp 
 324 Seville Way 
 San Mateo, CA 94402 
  
 Dear David, 
  
 It is my pleasure to extend you
an offer of employment with PalmSource, Inc. (“PalmSource”), a subsidiary of Palm, Inc. (“Palm”), in Sunnyvale, CA as Senior Vice President – Corporate and Business Development and Chief Strategy Officer reporting to me.
This offer supercedes the previous offers provided to you on May 23, 2003 , June 2, 2003, and June 5, 2003. 
  
 Salary and Annual Bonus 
  
 Your
annual salary will be $300,000 ($25,000.00 per month) payable semi-monthly. 
  
 PalmSource strongly believes in pay-for performance and, as such, we offer you a potential target bonus of 50% of your annual salary based on the Company achieving its revenue and operating income goals. We are currently in the process of
defining our Fiscal 2004 Company financial goals. 
  
 The primary parameters of
the proposed Bonus Plan, will be presented to the PalmSource Board of Directors for approval sometime during July. A bonus pool will be funded by operating income (without unusual items) that exceeds FY 2004 financial goals. Therefore, the Plan will
not be funded unless PalmSource’s overall operating income exceeds Board approved financial plan goals for FY04. The annual Bonus Plan is currently expected to follow our fiscal year and payment would occur in the quarter following the close of
our fiscal year. 
  
 Equity 
  
 As a Senior Executive of PalmSource you will be offered an option for a number of shares of
common stock equal to 1% of the shares of PalmSource on the date the option is granted, calculated on a fully-diluted basis, assuming convertibility of all other forms of security into common stock and including but not limited to all outstanding
shares of capital stock of PalmSource, the shares owned and controlled by Palm and the amount set aside for initial option pool for employees, directors and consultants, and any outstanding options, warrants and rights to purchase any capital stock
of PalmSource (collectively, “on a fully-diluted basis”). The grant will be submitted to the Board of Directors no later than July 31, 2003. The grant date will be the date the Board approves your grant. The options per share
exercise price will equal the fair market value per share of PalmSource common stock on the date of grant, as determined by the PalmSource Board. The stock option plan provides for four year vesting, 25% after the first year and monthly vesting
thereafter. Vesting will begin effective on your employment commencement date. If, on the date that PalmSource spins from Palm, Inc. (the “spin”), the number of shares outstanding of PalmSource is greater than the number of
shares of PalmSource 
  

 outstanding on your grant date, we will ask for Board approval to add additional options so as to make the total option
granted equivalent to 1% of fully-diluted shares of PalmSource as of the spin date. 
  
 At its last meeting, the Board of Directors approved a Stock Option Exchange Program that provides for the exchange of current options (in your case, those options granted to you per the previous paragraph) for a combination of restricted
shares of PalmSource stock and stock options. This program will be offered to all executives on a voluntary basis sometime during the next 60 days. We will ask the Board at their next meeting for approval to allow you to participate in the program
[We will also be recommending to the Board at their next meeting that the option regrant/exchange portion of the currently approved Exchange program be simplified to offer one new option, priced thirty days following spin date, for every two options
previously granted to you under your original option grant.] 
  
 In addition to
the above, you will be recommended for a grant of 13,000 shares of PalmSource restricted stock to be priced on the first business day following 30 days after the “spin”. The restricted stock grant will reflect any and all stock splits that
will be effect either before, at, or after the spin date and before your grant date of the restricted stock. This restricted stock grant will have a 2 year vest, 50% vesting each year. Vesting will be retroactive to your employment commencement
date. Your per share purchase price for these 13,000 shares will be the par value of each of the shares. 
  
 By mutual consent, PalmSource will have the right to repurchase the option (and any shares acquired upon exercise of the option) by paying you the fair market value (at
the time of the repurchase) of the stock covered by the option, minus the exercise price otherwise paid or payable. If necessary or appropriate to preserve favorable tax treatment for the spin of PalmSource, changes may be made in the options terms
described above (but without materially diminishing the potential value of the option). 
  
 Benefits 
  
 PalmSource offers a competitive complement of
benefits, which currently includes 28 days of combined time off and holidays, a 401(k) Plan, competitive health benefits, an Employee Stock Purchase Program (ESPP) and a one-month sabbatical program after each four years of continuous employment.

  
 You will also be eligible for benefits provided in PalmSource standard
Management Retention Agreement (Change in Control) and Executive Severance Agreement. Both are attached hereto and incorporated by reference. 
  
 Additionally, PalmSource will reimburse you for the legal fees and costs up to a maximum of $5,000 in connection with the review and negotiation of this employment offer.

  
 This offer of employment and your continued employment with PalmSource are
expressly contingent upon PalmSource receiving the following: 
  

	 	•	 	Acceptable results from a background investigation. Any falsification of employment history or educational background will result in withdrawal of the offer and/or termination of
employment. 

  

	 	•	 	Signed copies of the PalmSource (i) Employee Agreement, (ii) Confidentiality Guidelines, and (iii) Code of Conduct, stating, among other things, that you will keep confidential
company information throughout and beyond your employment with PalmSource. 

  

	 	•	 	Satisfactory proof of identification and work authorization as required by the Immigration Reform and Control Act of 1990. 

  
 The terms and conditions of your proposed employment with PalmSource as stated in this letter
supersede any previous representations concerning conditions of employment. While we are confident that we will have a mutually beneficial employment relationship, employment with PalmSource is voluntary and at-will. This means you are free to
resign at any time. Similarly, PalmSource is free to terminate your employment, with or without cause or notice, at any time. Exceptions to this employment-at-will policy may be made only by a written agreement signed by a PalmSource officer.

  
 This offer of employment is open for a period of 5 working days from the date
of this letter. Within this time period, please confirm your acceptance by signing below and proposing a start date. Return the signed offer letter along with signed copies of the three PalmSource agreements to the PalmSource HR/Staffing department.

  
 Let me close by reaffirming our belief that the skills and background you
bring to PalmSource will be instrumental to the future success of the Company. PalmSource believes that the single most important factor in our success has been our people. I look forward to working with you very soon. 
  

	Sincerely,
	
	 David C. Nagel         

	 Chief Executive Officer
 PalmSource, Inc.

  

  
 I accept the offer of employment at PalmSource, Inc. based on the terms described in this offer letter. 
  

	 /s/    DAVID A.
LIMP        

	 	 	 	 	 	 /s/    DAVID
NAGEL        

	David A. Limp	 	 	 	 Date
	 	 

  
  
 I propose a start date of Thursday, June 19, 2003.Offer Letter Agreement-Lamar Potts

 Exhibit 10.8 
  
  
 June 5, 2002 
  
  
 Lamar Potts

 15400 Winchester Blvd. #56 
 Los Gatos, CA 85030 
  
 Dear Lamar: 
  
 It is my pleasure to offer you the position of Vice President, Sales for PalmSource, a wholly owned subsidiary of Palm,
Inc., reporting directly to me. 
  
 Your starting salary will be
$225,000.00 per year, payable semi-monthly. Your total annual On Target Earnings (OTE) is targeted at $345,000. This OTE is composed of: base salary, PalmSource’s discretionary bonus plan with a target of 20% of your base salary and a special
sales-based incentive with a target of 33% of your base salary. The PalmSource discretionary bonus plan offers the opportunity to earn a bonus with a target amount of 20% of base salary; actual payments being based on various factors, including
company and individual performance. Your individual performance targets for the sales-based incentive will be established by mutual agreement within two months of the commencement of your employment and will be payable on a quarterly basis if the
targets are achieved. 
  
 You will also receive a sign-on bonus
totaling $25,000.00, less applicable taxes. This special, one time bonus is paid with the first regular payroll following 30 days of your employment. By signing this letter below, you agree to repay the full amount of the sign-on bonus you have
received if you voluntarily leave PalmSource within one year of your employment commencement date. 
  
 Upon receipt of the required approval by PalmSource’s Board of Directors, you will receive an option to purchase 110,000 shares of PalmSource stock.
This grant provides for four year vesting, 25% after the first year and monthly vesting thereafter. Vesting will begin effective with your start date. Such grant shall be made within 45 days of your employment commencement date. Terms of the Plan
are described in the 2001 Stock Plan, Stock Option Agreement and the 2001 Stock Plan. 
  
 In addition, you will be eligible to receive a stock option grant of 25,000 Palm shares priced at the closing stock price on the Friday following your start date, or if the stock market is closed on this date, the
closing stock price on the last trading day prior to Friday. This grant is subject to approval by the Palm Board of Directors. The plan provides four year vesting, 25% after the first year and a monthly vesting thereafter. Vesting will begin
effective with your start date. 
  
 PalmSource offers a
competitive complement of benefits, which currently includes medical, dental, vision and life coverages, an Employee Stock Purchase Program (ESPP), 401K Plan, as well 

 as 28 days of combined time off and holidays, and other benefits as established by PalmSource (including a sabbatical
program). 
  
 This offer of employment and your continued
employment with Palm are expressly contingent upon PalmSource receiving the following: 
  

	 	•	 	Acceptable results from a background investigation. Any falsification of employment history or educational background may result in withdrawal of the offer and and/or termination of
employment. 

  

	 	•	 	Signed copies of the Palm (i) Employee Agreement, (ii) Confidentiality Guidelines, and (iii) Palm’s Code of Conduct, stating, among other things, that you will keep
confidential company information throughout and beyond your employment with PalmSource. 

  

	 	•	 	Satisfactory proof of identification and work authorization as required by the Immigration Reform and Control Act of 1990. 

  
 If your position requires exposure or access to export controlled or
classified data, this offer is also contingent upon successful acquisition of any necessary licenses or security clearances. If a license is granted, then you must agree to abide by all conditions of any restrictions or riders to the license
approval. 
  
 The terms and conditions of your proposed employment
with PalmSource in this letter supersede any contrary verbal representations concerning conditions of employment. While we are confident that we will have a mutually beneficial employment relationship, employment with PalmSource is voluntary and
at-will. This means that you are free to resign at any time. Similarly, PalmSource is free to terminate your employment relationship, with or without Cause or notice, at any time. Exceptions to this employment-at-will policy may be made only by a
written agreement signed by PalmSource’s Board of Directors. 
  
 This offer of employment is open for a period of 5 working days from the date of this letter. Within this time period, I would appreciate your confirming your acceptance by signing on the space provided and returning this letter to me,
indicating your proposed start date. 
  
 Let me close by
reaffirming our belief that the skill and background you bring to Palm and PalmSource, Inc. will be instrumental to the future success of the Company. I look forward to working with you very soon. 
  

	Sincerely,
	
	 /s/    DAVID
NAGEL         

	 David Nagel
 President and CEO
 PalmSource, Inc.

  

 -2- 

 I accept the offer of employment at PalmSource, Inc. based on the terms described in this offer letter. I
propose a start date of                     . 
  
  

	/s/    LAMAR POTTS

	  	 	 	June 7, 2002

	Signature	  	 	 	Date

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