1992 STOCK OPTION PLAN

 

                                                                    EXHIBIT 10.2
 
                         PEERLESS SYSTEMS CORPORATION

                            1992 STOCK OPTION PLAN

                           ADOPTED SEPTEMBER 1, 1992
                    APPROVED BY SHAREHOLDERS APRIL 22, 1993

                             AMENDED JUNE 7, 1993
                    APPROVED BY SHAREHOLDERS APRIL 22, 1994

                           AMENDED OCTOBER 20, 1994
                            AMENDED APRIL 26, 1995
                     APPROVED BY SHAREHOLDERS MAY 11, 1995

        1.  PURPOSES.

            (a) The purpose of the Plan is to provide a means by which selected
Employees and Directors of and Consultants to the Company, and its Affiliates,
may be given an opportunity to purchase stock of the Company.
            
            (b) The Company, by means of the Plan, seeks to retain the services
of persons who are now Employees or Directors of or Consultants to the Company,
to secure and retain the services of new Employees, Directors and Consultants,
and to provide incentives for such persons to exert maximum efforts for the
success of the Company.

            (c) The Company intends that the Options issued under the Plan
shall, in the discretion of the Board or any Committee to which responsibility
for administration of the Plan has been delegated pursuant to subsection 3(c),
be either Incentive Stock Options or Nonstatutory Stock Options. All Options
shall be separately designated Incentive Stock Options or Nonstatutory Stock
Options at the time of grant, and in such form as issued pursuant to section 6,
and a separate certificate or certificates will be issued for shares purchased
on exercise of each type of Option.

        2.  DEFINITIONS.
          
            (a) "AFFILIATE" means any parent corporation or subsidiary
corporation, whether now or hereafter existing, as those terms are defined in
Sections 424(e) and (f) respectively, of the Code.                 

            (b) "BOARD" means the Board of Directors of the Company.
                                 
            (c) "CODE" means the Internal Revenue Code of 1986, as amended.
                                 
            (d) "COMMITTEE" means a Committee appointed by the Board in 
accordance with subsection 3(c) of the Plan.

            (e) "COMPANY" means Peerless Systems Corporation, a California 
corporation.
          
            (f) "CONSULTANT" means any person, including an advisor, engaged by
the Company or an Affiliate to render services and who is compensated for such
services, provided that the term "Consultant" shall not include Directors who
are paid only a director's fee by the Company or who are not compensated by the
Company for their services as Directors.
          
            (g) "CONTINUOUS STATUS AS AN EMPLOYEE, DIRECTOR OR CONSULTANT" means
the employment or relationship as a Director or Consultant is not interrupted or
terminated by the Company or any Affiliate.  The Board, in its sole discretion,
may determine whether Continuous Status as an Employee, Director or Consultant
shall be considered interrupted in the case of:  (i) any leave of absence
approved by the Board, including sick leave, military leave, or any other
personal leave; provided, however, that for purposes of Incentive Stock Options,
any such leave may not exceed ninety (90) days, unless reemployment upon the
expiration of such leave is guaranteed by contract (including certain Company
policies) or statute; or (ii) transfers between locations of the Company or
between the Company, Affiliates or its successor.
                                 
            (h) "DIRECTOR" means a member of the Board.

                                      2. 

            (i) "DISABILITY" means total and permanent disability as defined in
Section 22(e)(3) of the Code.

            (j) "DISINTERESTED PERSON" means a Director:  (i) who was not during
the one year prior to service as an administrator of the Plan granted or awarded
equity securities pursuant to the Plan or any other plan of the Company or any
of its affiliates entitling the participants therein to acquire equity
securities of the Company or any of its affiliates except as permitted by Rule
16b-3(c)(2)(i); or (ii) who is otherwise considered to be a "disinterested
person" in accordance with Rule 16b-3(c)(2)(i), or any other applicable rules,
regulations or interpretations of the Securities and Exchange Commission.

            (k) "EMPLOYEE" means any person, including Officers and Directors,
employed by the Company or any Affiliate of the Company.  Neither service as a
Director nor payment of a director's fee by the Company shall be sufficient to
constitute "employment" by the Company.
                                 
            (l) "EXCHANGE ACT" means the Securities Exchange Act of 1934, as 
amended.
                                 
            (m) "FAIR MARKET VALUE" means, as of any date, the value of the 
common stock of the Company determined as follows:

                (i) If the common stock is listed on any established stock
exchange or a national market system, including without limitation the National
Market System of the National Association of Securities Dealers, Inc. Automated
Quotation ("NASDAQ") System, the Fair Market Value of a share of common stock
shall be the closing sales price for such stock (or the closing bid, if no sales
were reported) as quoted on such system or exchange (or the exchange with the
greatest volume of trading in common stock) on the last market trading day prior
to the day of determination, as reporting in the Wall Street Journal or such
other source as the Board deems reliable;

                                      3.

                (ii) If the common stock is quoted on the NASDAQ System (but 
not on the National Market System thereof) or is regularly quoted by a 
recognized securities dealer but selling prices are not reported, the Fair
Market Value of a share of common stock shall be the mean between the high bid
and high asked prices for the common stock on the last market trading day prior
to the day of determination, as reported in the Wall Street Journal or such
other source as the Board deems reliable;

                (iii)  In the absence of an established market for the common
stock, the Fair Market Value shall be determined in good faith by the Board.
          
            (n) "INCENTIVE STOCK OPTION" means an Option intended to qualify 
as an incentive stock option within the meaning of Section 422 of the Code and
the regulations promulgated thereunder.
                                 
            (o) "NONSTATUTORY STOCK OPTION" means an Option not intended to 
qualify as an Incentive Stock Option.
          
            (p) "OFFICER" means a person who is an officer of the Company within
the meaning of Section 16 of the Exchange Act and the rules and regulations
promulgated thereunder.
                                 
            (q) "OPTION" means a stock option granted pursuant to the Plan.
          
            (r) "OPTION AGREEMENT" means a written agreement between the Company
and an Optionee evidencing the terms and conditions of an individual Option
grant.  The Option Agreement is subject to the terms and conditions of the Plan.
                                 
            (s) "OPTIONED STOCK" means the common stock of the Company subject
to an Option.

            (t) "OPTIONEE" means an Employee, Director or Consultant who holds
an outstanding Option.

                                      4.

            (u) "PLAN" means this 1992 Stock Option Plan.
          
            (v) "RULE 16b-3" means Rule 16b-3 of the Exchange Act or any 
successor to Rule 16b-3, as in effect when discretion is being exercised with
respect to the Plan.
                                 
        3.  ADMINISTRATION.
          
            (a) The Plan shall be administered by the Board unless and until the
Board delegates administration to a Committee, as provided in subsection 3(c).
                                 
            (b) The Board shall have the power, subject to, and within the 
limitations of, the express provisions of the Plan:
          
                (i) To determine from time to time which of the persons 
eligible under the Plan shall be granted Options; when and how the Option shall
be granted; whether the Option will be an Incentive Stock Option or a
Nonstatutory Stock Option; the provisions of each Option granted (which need not
be identical), including the time or times such Option may be exercised in whole
or in part; and the number of shares for which an Option shall be granted to
each such person.
          
                (ii) To construe and interpret the Plan and Options granted 
under it, and to establish, amend and revoke rules and regulations for its
administration. The Board, in the exercise of this power, may correct any
defect, omission or inconsistency in the Plan or in any Option Agreement, in a
manner and to the extent it shall deem necessary or expedient to make the Plan
fully effective.

                (iii)  To amend the Plan as provided in Section 11.

            (c) The Board may delegate administration of the Plan to a committee
composed of not fewer than two (2) members (the "Committee"), all of the members
of which Committee shall be disinterested persons, if required and as defined by
the provisions of subsection 3(d).  If 

                                      5.

administration is delegated to a Committee, the Committee shall have, in 
connection with the administration of the Plan, the powers theretofore possessed
by the Board (and references in this Plan to the Board shall thereafter be to
the Committee), subject, however, to such resolutions, not inconsistent with the
provisions of the Plan, as may be adopted from time to time by the Board. The
Board may abolish the Committee at any time and revest in the Board the
administration of the Plan. Additionally, prior to the date of the first
registration of an equity security of the Company under Section 12 of the
Exchange Act, and notwithstanding anything to the contrary contained herein, the
Board may delegate administration of the Plan to any person or persons and the
term "Committee" shall apply to any person or persons to whom such authority has
been delegated.

          (d) Any requirement that an administrator of the Plan be a
Disinterested Person shall not apply (i) prior to the date of the first
registration of an equity security of the Company under Section 12 of the
Exchange Act, or (ii) if the Board or the Committee expressly declares that such
requirement shall not apply.  Any Disinterested Person shall otherwise comply
with the requirements of Rule 16b-3.

        4.  SHARES SUBJECT TO THE PLAN.
          
            (a)  Subject to the provisions of Section 10 relating to adjustments
upon changes in stock, the stock that may be sold pursuant to Options shall not
exceed in the aggregate one million five hundred eighty-two thousand five
hundred (1,582,500) shares of the Company's common stock.  If any Option shall
for any reason expire or otherwise terminate without having been exercised in 
full, the stock not purchased under such Option shall again become available 
for the Plan.
                                 

                                      6.

            (b) The stock subject to the Plan may be unissued shares or
reacquired shares, bought on the market or otherwise.
                                 
        5.  ELIGIBILITY.
          
            (a) Incentive Stock Options may be granted only to Employees.
Nonstatutory Stock Options may be granted only to Employees, Directors or
Consultants.
          
            (b) A Director shall in no event be eligible for the benefits of the
Plan unless at the time discretion is exercised in the selection of the Director
as a person to whom Options may be granted, or in the determination of the
number of shares which may be covered by Options granted to the Director:  
(i) the Board has delegated its discretionary authority over the Plan to a
Committee which consists solely of Disinterested Persons; or (ii) the Plan
otherwise complies with the requirements of Rule 16b-3. The Board shall
otherwise comply with the requirements of Rule 16b-3. This subsection 5(b) shall
not apply (i) prior to the date of the first registration of an equity security
of the Company under Section 12 of the Exchange Act, or (ii) if the Board or
Committee expressly declares that it shall not apply.
          
            (c) No person shall be eligible for the grant of an Option if, at 
the time of grant, such person owns (or is deemed to own pursuant to Section
424(d) of the Code) stock possessing more than ten percent (10%) of the total
combined voting power of all classes of stock of the Company or of any of its
Affiliates unless the exercise price of such Option is at least one hundred ten
percent (110%) of the Fair Market Value of such stock at the date of grant and
the Option is not exercisable after the expiration of five (5) years from the
date of grant.

                                      7.

        6.  OPTION PROVISIONS.

            Each Option shall be in such form and shall contain such terms and
conditions as the Board shall deem appropriate.  The provisions of separate
Options need not be identical, but each Option shall include (through
incorporation of provisions hereof by reference in the Option or otherwise) the
substance of each of the following provisions:
                                 
            (a) TERM.  No Option shall be exercisable after the expiration of 
ten (10) years from the date it was granted.
          
            (b) PRICE.  The exercise price of each Incentive Stock Option 
shall be not less than one hundred percent (100%) of the fair market value of 
the stock subject to the Option on the date the Option is granted. The exercise
price of each Nonstatutory Stock Option shall be not less than eighty-five
percent (85%) of the fair market value of the stock subject to the Option on the
date the Option is granted.

            (c) CONSIDERATION.  The purchase price of stock acquired pursuant to
an Option shall be paid, to the extent permitted by applicable statutes and
regulations, either (i) in cash at the time the option is exercised, or (ii) at
the discretion of the Board or the Committee, either at the time of the grant or
exercise of the Option, (A) by delivery to the Company of other common stock of
the Company, (B) according to a deferred payment or other arrangement (which may
include, without limiting the generality of the foregoing, the use of other
common stock of the Company) with the person to whom the Option is granted or to
whom the Option is transferred pursuant to subsection 6(d), or (C) in any other
form of legal consideration that may be acceptable to the Board.

            In the case of any deferred payment arrangement in connection with 
the exercise of an Incentive Stock Option, interest shall be payable at least
annually and shall be charged at the 

                                      8.

minimum rate of interest necessary to avoid the treatment as interest, under 
any applicable provisions of the Code, of any amounts other than amounts stated
to be interest under the deferred payment arrangement.
          
           (d) TRANSFERABILITY.  An Incentive Stock Option shall not be
transferable except by will or by the laws of descent and distribution, and
shall be exercisable during the lifetime of the person to whom the Incentive
Stock Option is granted only by such person.  A Nonstatutory Stock Option shall
not be transferable except by will or by the laws of descent and distribution or
pursuant to a qualified domestic relations order as defined by the Code or 
Title I of the Employee Retirement Income Security Act, or the rules thereunder
(a "QDRO"), and shall be exercisable during the lifetime of the person to whom
the Option is granted only by such person or any transferee pursuant to a QDRO.

            (e) VESTING.  The total number of shares of stock subject to an 
Option may, but need not, be allotted in periodic installments (which may, but
need not, be equal). The Option Agreement may provide that from time to time
during each of such installment periods, the Option may become exercisable
("vest") with respect to some or all of the shares allotted to that period, and
may be exercised with respect to some or all of the shares allotted to such
period and/or any prior period as to which the Option became vested but was not
fully exercised. During the remainder of the term of the Option (if its term
extends beyond the end of the installment periods), the option may be exercised
from time to time with respect to any shares then remaining subject to the
Option. The provisions of this subsection 6(e) are subject to any Option
provisions governing the minimum number of shares as to which an Option may be
exercised.
          
            (f) SECURITIES LAW COMPLIANCE.  The Company may require any 
Optionee, or any person to whom an Option is transferred under subsection 6(d),
as a condition of exercising 

                                      9.

any such Option, (1) to give written assurances satisfactory to the Company as 
to the Optionee's knowledge and experience in financial and business matters
and/or to employ a purchaser representative reasonably satisfactory to the
Company who is knowledgeable and experienced in financial and business matters,
and that he or she is capable of evaluating, alone or together with the
purchaser representative, the merits and risks of exercising the Option; and 
(2) to give written assurances satisfactory to the Company stating that such
person is acquiring the stock subject to the Option for such person's own
account and not with any present intention of selling or otherwise distributing
the stock. These requirements, and any assurances given pursuant to such
requirements, shall be inoperative if (i) the issuance of the shares upon the
exercise of the Option has been registered under a then currently effective
registration statement under the Securities Act of 1933, as amended (the
"Securities Act"), or (ii) as to any particular requirement, a determination is
made by counsel for the Company that such requirement need not be met in the
circumstances under the then applicable securities laws.
          
            (g) TERMINATION OF EMPLOYMENT OR RELATIONSHIP AS A DIRECTOR OR
CONSULTANT.  In the event an Optionee's Continuous Status as an Employee,
Director or Consultant terminates (other than upon the Optionee's death or
Disability), the Optionee may exercise his or her Option, but only within such
period of time as is determined by the Board, and only to the extent that the
Optionee was entitled to exercise it at the date of termination (but in no event
later than the expiration of the term of such Option as set forth in the Option
Agreement).  In the case of an Incentive Stock Option, the Board shall determine
such period of time (in no event to exceed three (3) months from the date of
termination) when the Option is granted.  If, at the date of termination, the
Optionee is not entitled to exercise his or her entire Option, the shares
covered by the unexercisable portion of the Option shall revert to the Plan.
If, after 

                                      10.

termination, the Optionee does not exercise his or her Option within the time 
specified in the Option Agreement, the Option shall terminate, and the shares
covered by such Option shall revert to the Plan.
          
             (h) DISABILITY OF OPTIONEE.  In the event an Optionee's Continuous
Status as an Employee, Director or Consultant terminates as a result of the
Optionee's Disability, the Optionee may exercise his or her Option, but only
within twelve (12) months from the date of such termination (or such longer or
shorter period, which in no event shall be less than six (6) months), and only
to the extent that the Optionee was entitled to exercise it at the date of such
termination (but in no event later than the expiration of the term of such
Option as set forth in the Option Agreement).  If, at the date of termination,
the Optionee is not entitled to exercise his or her entire Option, the shares
covered by the unexercisable portion of the Option shall revert to the Plan.
If, after termination, the Optionee does not exercise his or her Option within
the time specified herein, the Option shall terminate, and the shares covered by
such Option shall revert to the Plan.

             (i)  DEATH OF OPTIONEE.  In the event of the death of an Optionee,
the Option may be exercised, at any time within twelve (12) months following the
date of death (or such shorter period specified in the Option Agreement) (but in
no event later than the expiration of the term of such Option as set forth in
the Option Agreement), by the Optionee's estate or by a person who acquired the
right to exercise the Option by bequest or inheritance, but only to the extent
the Optionee was entitled to exercise the Option at the date of death. If, at
the time of death, the Optionee was not entitled to exercise his or her entire
Option, the shares covered by the unexercisable portion of the Option shall
revert to the Plan. If, after death, the Optionee's estate or a person who
acquired the right to exercise the Option by bequest or inheritance does not

                                      11.

exercise the Option within the time specified herein, the Option shall
terminate, and the shares covered by such Option shall revert to the Plan.

            (j) EARLY EXERCISE.  The Option may, but need not, include a 
provision whereby the Optionee may elect at any time while an Employee, Director
or Consultant to exercise the Option as to any part or all of the shares subject
to the Option prior to the full vesting of the Option. Any unvested shares so
purchased may be subject to a repurchase right in favor of the Company or to any
other restriction the Board determines to be appropriate.

            (k) WITHHOLDING.  To the extent provided by the terms of an Option
Agreement, the Optionee may satisfy any federal, state or local tax withholding
obligation relating to the exercise of such Option by any of the following means
or by a combination of such means: (1) tendering a cash payment; (2) authorizing
the Company to withhold shares from the shares of the common stock otherwise
issuable to the participant as a result of the exercise of the Option; or (3)
delivering to the Company owned and unencumbered shares of the common stock of
the Company.

        7.  COVENANTS OF THE COMPANY.
          
            (a) During the terms of the Options, the Company shall keep 
available at all times the number of shares of stock required to satisfy such
Options.

            (b) The Company shall seek to obtain from each regulatory commission
or agency having jurisdiction over the Plan such authority as may be required to
issue and sell shares of stock upon exercise of the Options; provided, however,
that this undertaking shall not require the Company to register under the
Securities Act either the Plan, any Option or any stock issued or issuable
pursuant to any such Option.  If, after reasonable efforts, the Company is
unable to obtain from any such regulatory commission or agency the authority
which counsel for the 

                                      12.

Company deems necessary for the lawful issuance and sale of stock under the
Plan, the Company shall be relieved from any liability for failure to issue and
sell stock upon exercise of such Options unless and until such authority is
obtained.

        8.  USE OF PROCEEDS FROM STOCK.
                                 
            Proceeds from the sale of stock pursuant to Options shall constitute
general funds of the Company.
                                 
        9.  MISCELLANEOUS.
          
            (a) Neither an Optionee nor any person to whom an Option is
transferred under subsection 6(d) shall be deemed to be the holder of, or to
have any of the rights of a holder with respect to, any shares subject to such
Option unless and until such person has satisfied all requirements for exercise
of the Option pursuant to its terms.

            (b) Throughout the term of any Option, the Company shall deliver to
the holder of such Option, not later than one hundred twenty (120) days after
the close of each of the Company's fiscal years during the Option term, a
balance sheet and an income statement.  This section shall not apply when
issuance is limited to key employees whose duties in connection with the Company
assure them access to equivalent information.

            (c) Nothing in the Plan or any instrument executed or Option granted
pursuant thereto shall confer upon any Employee, Director, Consultant or
Optionee any right to continue in the employ of the Company or any Affiliate (or
to continue acting as a Director or Consultant) or shall affect the right of the
Company or any Affiliate to terminate the employment or relationship as a
Director or Consultant of any Employee, Director, Consultant or Optionee with or
without cause.

                                      13.

            (d) To the extent that the aggregate Fair Market Value (determined 
at the time of grant) of stock with respect to which Incentive Stock Options
granted after 1986 are exercisable for the first time by any Optionee during any
calendar year under all plans of the Company and its Affiliates exceeds one
hundred thousand dollars ($100,000), the Options or portions thereof which
exceed such limit (according to the order in which they were granted) shall be
treated as Nonstatutory Stock Options.

        10.  ADJUSTMENTS UPON CHANGES IN STOCK.
          
            (a) If any change is made in the stock subject to the Plan, or 
subject to any Option (through merger, consolidation, reorganization,
recapitalization, stock dividend, dividend in property other than cash, stock
split, liquidating dividend, combination of shares, exchange of shares, change
in corporate structure or otherwise), the Plan and outstanding Options will be
appropriately adjusted in the class(es) and maximum number of shares subject to
the Plan and the class(es) and number of shares and price per share of stock
subject to outstanding Options.

            (b)  In the event of:  (1) a merger or consolidation in which the
Company is not the surviving corporation or (2) a reverse merger in which the
Company is the surviving corporation but the shares of the Company's common
stock outstanding immediately preceding the merger are converted by virtue of
the merger into other property, whether in the form of securities, cash or
otherwise then to the extent permitted by applicable law:  (i) any surviving
corporation shall assume any Options outstanding under the Plan or shall
substitute similar Options for those outstanding under the Plan, or (ii) such
Options shall continue in full force and effect.  In the event any surviving
corporation refuses to assume or continue such Options, or to substitute similar
options for those outstanding under the Plan, then such Options shall be
terminated if not exercised prior to such event.  In the event of a dissolution
or liquidation of the 

                                      14.

Company, any Options outstanding under the Plan shall terminate if not exercised
prior to such event.

        11.  AMENDMENT OF THE PLAN.
          
             (a) The Board at any time, and from time to time, may amend the 
Plan. However, except as provided in Section 10 relating to adjustments upon
changes in stock, no amendment shall be effective unless approved by the
stockholders of the Company within twelve (12) months before or after the
adoption of the amendment, where the amendment will:

                 (i) Increase the number of shares reserved for options under
the Plan;
          
                 (ii) Modify the requirements as to eligibility for
participation in the Plan (to the extent such modification requires stockholder
approval in order for the Plan to satisfy the requirements of Section 422 of the
Code); or

                 (iii) Modify the Plan in any other way if such modification
requires stockholder approval in order for the Plan to satisfy the requirements
of Section 422 of the Code or to comply with the requirements of Rule 16b-3.

             (b) It is expressly contemplated that the Board may amend the Plan
in any respect the Board deems necessary or advisable to provide Optionees with
the maximum benefits provided or to be provided under the provisions of the Code
and the regulations promulgated thereunder relating to Incentive Stock Options
and/or to bring the Plan and/or Incentive Stock Options granted under it into
compliance therewith.

             (c) Rights and obligations under any Option granted before
amendment of the Plan shall not be altered or impaired by any amendment of the
Plan unless (i) the Company requests the consent of the person to whom the
Option was granted and (ii) such person consents in writing.

                                      15.

        12.  TERMINATION OR SUSPENSION OF THE PLAN.
          
             (a) The Board may suspend or terminate the Plan at any time. Unless
sooner terminated, the Plan shall terminate on September 1, 2002. No Options may
be granted under the Plan while the Plan is suspended or after it is terminated.

             (b) Rights and obligations under any Option granted while the Plan
is in effect shall not be altered or impaired by suspension or termination of
the Plan, except with the consent of the person to whom the Option was granted.

        13.  EFFECTIVE DATE OF PLAN.

             The Plan shall become effective as determined by the Board, but no
Options granted under the Plan shall be exercised unless and until the Plan has
been approved by the stockholders of the Company, and, if required, an
appropriate permit has been issued by the Commissioner of Corporations of the
State of California.

                                      16. 

Basic Info X:

Name: 1992 STOCK OPTION PLAN
Type: Stock Option Plan
Date: Aug. 1, 1996
Company: PEERLESS SYSTEMS CORP
State: Delaware

Other info:

Date:

  • SEPTEMBER 1 , 1992
  • APRIL 22 , 1993
  • JUNE 7 , 1993
  • APRIL 22 , 1994
  • OCTOBER 20 , 1994
  • APRIL 26 , 1995
  • MAY 11 , 1995 1
  • September 1 , 2002

Organization:

  • Board of Directors of the Company
  • Peerless Systems Corporation
  • Securities and Exchange Commission
  • National Market System of the National Association of Securities Dealers , Inc
  • Board or Committee
  • Nonstatutory Stock Options
  • Incentive Stock Options
  • Commissioner of Corporations of the State of California

Location:

  • California

Money:

  • $ 100,000

Person:

  • Optionee

Percent:

  • ten percent 110 %
  • one hundred percent 100 %
  • eighty-five percent 85 %