Document:

exv10w22

 

Exhibit 10.22

10b5-1 Issuer Repurchase Instructions

     Issuer Securities Repurchase Instructions, dated December 1, 2006 (the “Instructions”),
between Keynote Systems, Inc. (the “Issuer”) and B. Riley & Co., Inc. (the “Broker”).

     WHEREAS, Issuer desires to repurchase shares of its common stock (the “Common Stock”),
pursuant to its publicly announced Securities Repurchase Program (the “Program”); and

     WHEREAS, Issuer desires to appoint Broker to repurchase shares of Common Stock on its behalf
in accordance with this Instruction and the Program;

     NOW, THEREFORE, the Issuer and Broker hereby agree as follows:

	1.	 	Trading Requirements (Amount/Price/Date).

	 	a)	 	Broker shall effect a repurchase (each a “Purchase”) of shares of Common Stock
in accordance with the formula set forth below on each odd day (e.g., 1, 3, 5, 7, 9,
11, 13, 15, 17, 19, 21, 23, 25, 27, 29, 31) on which NASDAQ National Stock Market is
open for trading and the then applicable market price for the Common Stock is a price
of not more than $11.00 per share (the “Price Limitation”). In the event of subsequent
stock split or reverse stock split by the Company, the Price Limitation shall also be
proportionately adjusted by the stock split ratio at the time the Board of Directors of
the Company effects such a stock split or reverse stock split.

OR

     Broker shall effect a repurchase (each a “Purchase”) of shares of Common Stock in
accordance with the formula set forth below on each odd day (e.g., 1, 3, 5, 7, 9, 11,
13, 15, 17, 19, 21, 23, 25, 27, 29, 31) on which NASDAQ National Stock Market is open
for trading and the then applicable market price for the Common Stock is as set forth in
the following table (the “Price Limitations”) where each Maximum Purchase Amount
limitation shall not be exceeded for Purchases between the Minimum Price and the Maximum
Price, and each Maximum Purchase Amount shall be treated as an independent instruction:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Maximum
	Minimum Price	 	Maximum Price	 	Amount
	 
	 	$	11.00	 	 	1,000,000 shares

	 	b)	 	Broker shall purchase an unlimited number of shares of Common Stock on the open
NASDAQ national securities exchange market or in block purchases as defined in Rule
10b-18 subject to (i) the Price Limitation, (ii) the termination provisions for this
Instruction as set forth in Section 2 below, and (iii) any other limitations as set
forth in this Instruction.
	 
	 	c)	 	Notwithstanding the foregoing, the total number of shares of Common Stock to be
purchased on any day shall not exceed either 10,000 shares per day (not including the
allowable for cumulative catch up on days where less than 10,000 shares were purchased)
or the then applicable volume limitation of Rule 10b-18 under the Securities Exchange
Act of 1934, as amended (the “Exchange Act”). Broker agrees to provide confirmations
of any purchases hereunder promptly.

 

 

	2.	 	Effective Date/Termination. The Instruction shall become effective on February 1,
2007 and shall terminate upon the earlier of:

	 	a)	 	December 31, 2007
	 
	 	b)	 	Such time as the aggregate number of shares of Common Stock purchased under
this Instruction equals 1,000,000 shares;
	 
	 	c)	 	Upon receipt of written notice from the Issuer requesting the termination of
the Instruction; or
	 
	 	d)	 	Any time any trade contemplated hereunder shall result in a violation of, or
adverse change consequences under, applicable securities laws.

	3.	 	Representations and Warranties.

	 	a)	 	Issuer represents and warrants that the Purchase of Common Stock pursuant to
this Instruction has been duly authorized by the Issuer and is consistent with the
Issuer’s Program.
	 
	 	b)	 	Issuer understands that Broker may not be able to effect a Purchase due to a
market disruption or a legal, regulatory or contractual restriction applicable to the
Broker. If any Purchase cannot be executed as required by paragraph 1, due to a market
disruption, a legal, regulatory or contractual restriction applicable to the Broker or
any other event, Broker agrees to effect such Purchase as promptly as practical after
the cessation or termination of such market disruption, applicable restriction or other
event.
	 
	 	c)	 	Issuer represents and warrants that it is not aware of material, nonpublic
information and is entering into this Instruction in good faith and not as part of a
plan or scheme to evade the prohibition of Rule 10b5-1.

	3.	 	Commission to Broker. $0.03 cents per share purchased and no other fees
other than standard account fees will be assessed.

	4.	 	Compliance with the Securities Laws.

	 	a)	 	Broker agrees to comply with Rule 10b-18 under the Exchange Act in effecting
any Purchase of Common Stock pursuant to this Instruction.
	 
	 	b)	 	It is the intent of the parties that this Instruction comply with the
requirements of Rule 10b5-1(c)(1)(i)(B) under the Exchange Act and this Instruction
shall be interpreted to comply with the requirements of Rule 10b5-1(c).

5. Confidentiality. “Confidential Information” means this Agreement and all information
disclosed by the Issuer to the Broker, in writing, orally or by inspection of tangible media.
Confidential Information shall not include any information which (a) was publicly known prior to
the time of disclosure; (b) becomes publicly known after disclosure by the Issuer through no
wrongful action or omission of the Broker; (c) is obtained by the Broker from a third party without
breach of such third party’s obligations of confidentiality; or (d) is independently developed by
the Broker without access to the Issuer’s Confidential Information. Broker agrees (i) not to use or
disclose to any third party Confidential Information for any purpose other than as contemplated by
this Agreement, and (ii) to use reasonable efforts to protect the secrecy of and avoid unauthorized
use and disclosure of the Confidential Information, including without limitation, using at least
the same degree of care it uses to protect its own

 

 

confidential information. Notwithstanding the foregoing, Broker may use or disclose Confidential
Information to the extent necessary to exercise its rights or fulfill its obligations hereunder,
and/or comply with applicable governmental regulations; provided that it Broker is required by law
to make any public disclosures of Confidential Information, to the extent it may legally do so, it
will give reasonable advance notice to the Issuer of such disclosure and will use its reasonable
efforts to secure confidential treatment of Confidential Information prior to its disclosure.

6. Modification. This Instruction may be modified by Issuer provided such modification (i)
is in writing; (ii) is made in good faith and not as part of a plan or scheme to evade prohibitions
of Rule 10b-5; and (iii) is in accordance with the terms of the Program.

7. Governing Law. The Instruction shall be governed by and constructed in accordance with
the laws of the State of California.

     IN WITNESS WHEREOF, the undersigned have signed this Instruction as of the date first
written above.

	 	 	 	 	 
	 	 	 
	 	By:  	/s/
Andrew D. Hamer	 
	 	Name: 	Andrew D. Hamer 	 
	 	Title:  	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	B. Riley & Co., Inc.

 	 
	 	By:  	/s/
Knut Grevle	 
	 	Name: Knut Grevle	 
	 	Title: Director of
Institutional Equity Tradingexv10w23

 

	 	 	 	 	 

Exhibit 10.23

Stock Repurchase Plan Pursuant to SEC Rule 10b-18

	1.	 	Corporation Purchasing: Keynote Systems Inc          .

	2	 	Amount of total repurchase: As per chart below.
	 
	 	 	Trading Requirements (Amount/Price/Date).

	 	a)	 	Broker shall effect a repurchase (each a “Purchase”) of shares of Common Stock
in accordance with the formula set forth below on each even day of the month (e.g., 2,
4, 6, 8, 10, 12, 14, 16, 18, 20, 22, 24, 26, 28, 30) on which NASDAQ Global Market is
open for trading and the then applicable market price for the Common Stock is a price
of not more than $11.00 per share (the “Price Limitation”). In the event of subsequent
stock split or reverse stock split by the Company, the Price Limitation shall also be
proportionately adjusted by the stock split ratio at the time the Board of Directors of
the Company effects such a stock split or reverse stock split.

OR

     Broker shall effect a repurchase (each a “Purchase”) of shares of Common Stock in
accordance with the formula set forth below on each even day (e.g., 2, 4, 6, 8, 10, 12,
14, 16, 18, 20, 22, 24, 26, 28, 30) on which NASDAQ National Stock Market is open for
trading and the then applicable market price for the Common Stock is as set forth in the
following table (the “Price Limitations”) where each Maximum Purchase Amount limitation
shall not be exceeded for Purchases between the Minimum Price and the Maximum Price, and
each Maximum Purchase Amount shall be treated as an independent instruction:

	 	 	 	 	 	 	 	 	 
	Minimum	 	Maximum	 	Maximum
	Price	 	Price	 	Amount
	 
	 	$	11.00	 	 	1,000,000 shares

	 	b)	 	Broker shall purchase up to 1,000,000 shares of Common Stock on the NASDAQ
Global Market or in block purchases as defined in Rule 10b-18 subject to (i) the Price
Limitation, (ii) the termination provisions for this Instruction as set forth in
Section 2 below, and (iii) any other limitations as set forth in this Instruction.
	 
	 	c)	 	Notwithstanding the foregoing, the total number of shares of Common Stock to be
purchased on any day shall not exceed either 10,000 shares per day (not including the
allowable for cumulative catch up on days where less than 10,000 shares were purchased)
or the then applicable volume limitation of Rule 10b-18 under the Securities Exchange
Act of 1934, as amended (the “Exchange Act”). Broker agrees to provide confirmations
of any purchases hereunder promptly.

	2.	 	Effective Date/Termination. The Instruction shall become effective on February 1,
2007 and shall terminate upon the earlier of:

	 	a)	 	December 31, 2007
	 
	 	b)	 	Such time as the aggregate number of shares of Common Stock purchased under
this Instruction equals 1,000,000 shares;

 

 

	 	c)	 	Upon receipt of written notice from the Issuer requesting the termination of
the Instruction; or
	 
	 	d)	 	Any time any trade contemplated hereunder shall result in a violation of, or
adverse change consequences under, applicable securities laws.

	3.	 	Commission to Craig-Hallum Capital Group: $.03 cents per share purchased and no other fees
will be assessed.

	4.	 	Persons at Corporation authorized to give trading direction:

Umang Gupta and/or Andrew Hamer

(completed corporate resolution form should be attached)

	5.	 	Persons at corporation to contact for settlement: Andrew Lee (Andrew.lee@keynote.com,
650-403-3280), John Kim (John.Kim@keynote.com, 650-403-3431) and My Tran (My.Tran@keynote.com,
650-403-3356)

	6.	 	Corporation understands that pursuant to SEC Rule 10b-18:

	 	a.	 	It may only effect transactions through a single broker dealer on any given
day.
	 
	 	b.	 	It may not have the opening transaction on a consolidated quote system
on any day.
	 
	 	c.	 	It may not purchase within either ten minutes or thirty minutes of the
scheduled close of trading on the Corporation’s principal exchange as determined by the
Corporation’s ADTV and Public Float.

	 	 	 	 	 	 	 	 	 
	30 minutes before
	 	ADTV < $1 million	 	Public Float < $150 million
	10 minutes before
	 	ADTV 3
 $1 million	 	Public Float 3 $150 million

	 	d.	 	It may not purchase within one—half hour of the termination of the
period in which last sale prices are reported on the consolidated tape if the purchase
is made off NASDAQ.
	 
	 	e.	 	Its bid may not exceed the greater of the highest independent bid or
the last independent transaction price, quoted or reported in the consolidated system.
	 
	 	f.	 	It must limit its purchases (other than block* purchases) to an amount each day
that does not exceed 25% of the average daily trading volume reported on the
consolidated tape for the four weeks preceding the week of the bid or purchase.

 

 

	 	g.	 	It will notify its affiliates (persons that directly or indirectly control, are
controlled by or are under common control with the corporation) that if any affiliate
themselves wish to purchase shares of the Corporation on a day when the Corporation is
purchasing through Craig-Hallum, the affiliates also must use Craig-Hallum that day for
their purchases.
	 
	 	h.	 	If Corporation’s purchases may be material in relation to the number of
outstanding shares or the daily trading volume, it should consult with SEC counsel and
consider issuing a press release announcing the size of the authorized repurchase
program.

Corporation understands that it is responsible for complying with the requirements of SEC Rule
10b-18 and its responsibility to file all required forms with the SEC to report any purchases of
its stock, provided, however, that Craig-Hallum shall not effect any trade that would cause the
Corporation to violate SEC Rule 10b-18 (assuming the Corporation has otherwise complied with the
above covenants).

Trade confirmation will be sent by fax to the Corporation the day of the trade or no later than the
following day. Corporation understands that it is responsible to settle promptly (within three
business days of trade date) by wire or check, any purchases made on its behalf through
Craig-Hallum.

Corporation understands that orders to purchase (including daily limits), to stop purchasing, or to
change order parameters, must be telephoned by Corporation to Joe Geelan or Mike Qualen at
Craig-Hallum (612-334-2889).

Corporation agrees to the above listed requirements for SEC Rule 10b-18 purchases through
Craig-Hallum Capital Group LLC.

Keynote Systems Inc.

	 	 	 	 	 	 	 	 
	By:
	 	/s/ Andrew Hamer	 	 	By:	 	/s/ Patricia Bartholomew
	Its:

	 	 

Chief Financial Officer
	 	    	Its:

	 	 

Managing Partner

 

			
	*	 	A block purchase that is excluded from the volume limitations is a quantity of stock that
either (i) has a purchase price of $200,000 or more or (ii) is at least 5,000 shares with a
purchase price of at least $50,000 or (iii) is at least 20 round lots and totals 150% or more of
the average daily trading volume. Block purchases excluded from the volume limitations do not
include amounts that a dealer has accumulated for purposes of selling to the issuer or which a
dealer has sold short to the issuer. An issuer is limited to one block purchase each week and such
purchase cannot be on the same day as other non-block purchases.

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