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TABLE OF CONTENTS
January29,2016,wehad16,712,407sharesoutstanding,andthereforeownershipofapproximately836,000sharesormorewould
currentlyconstitutea“5%shareholder”.We strongly urge that any stockholder contemplating becoming a 5% or more
shareholder contact us before doing so.
Even if we revoke the existing waiver to make the NOL Protective Measures operate again to prevent new “5% shareholders”,
we cannot ensure that an “ownership change” will not occur.
Section382oftheInternalRevenueCodeisanextremelycomplexprovisionwithrespecttowhichtherearemanyuncertainties.
Accordingly,iftheexistingwaiverwererevokedsothatthemeasuresweretooperateagaintopreventnew“5%shareholders”,the
NOLProtectiveMeasuresmightnotpreventalltransfersthatmightresultinan“ownershipchange.”Alternatively,acourtcouldfind
thatsomeoralloftheNOLProtectiveMeasuresarenotenforceable,eitheringeneralorastoaparticularfactsituation.Evenifthe
NOLProtectiveMeasuresareenforcedbystatecourts,wehavenotrequestedarulingfromtheInternalRevenueService(“IRS”)
regardingtheeffectivenessoftheNOLProtectiveMeasures,andwecannotensurethattheIRSwillagreethattheNOLProtective
MeasuresareeffectiveforpurposesofSection382.Moreover,ourBoardofDirectorscouldstillpermitatransferortransfersthat
resultinorcontributetowardsan“ownershipchange”ifitweretodeterminethatsuchatransferisinourbestinterests.Asaresultof
theseandotherfactors,theNOLProtectiveMeasures,ifoperative,wouldservetoreduce,butnoteliminate,theriskthatwecould
undergoan“ownershipchange.”Accordingly,eveninsuchevent,wecouldnotassureyouthatuponaudit,theIRSwouldagreethatall
ofourNOLsareallowable.
Our charter documents could deter a takeover effort, which could inhibit your ability to receive an acquisition premium for
your shares.
Theprovisionsofourcertificateofincorporation,bylawsandDelawarelawcouldmakeitdifficultforathirdpartytoacquireus,
evenifitwouldbebeneficialtoourstockholders.Inaddition,wearesubjecttotheprovisionsofSection203oftheDelawareGeneral
CorporationLaw,whichcouldprohibitordelayamergerorothertakeoverofourcompany,anddiscourageattemptstoacquireus.
Inaddition,iftheexistingwaiverofourNOLProtectiveMeasureswererevokedsothatthemeasuresoperatedagaintoprevent
new“5%shareholders”,theNOLProtectiveMeasurescouldbedeemedtohavean“anti-takeover”effectbecause,amongotherthings,
theywouldrestricttheabilityofaperson,entityorgrouptoaccumulatemorethan5%ofourcommonstockandtheabilityofpersons,
entitiesorgroupsnowowningmorethan5%ofourcommonstocktoacquireadditionalsharesofourcommonstockwithoutthe
approvalofourBoardofDirectors.Asaresult,ourBoardofDirectorsmightbeabletopreventanyfuturetakeoverattempt.Therefore,
theNOLProtectiveMeasurescoulddiscourageorpreventaccumulationsofsubstantialblocksofsharesinwhichourstockholders
mightreceiveasubstantialpremiumabovemarketvalueandmighttendtoinsulatemanagementagainstthepossibilityofremoval.
The USPS may object to a change of control of our common stock.
TheUSPSmayraisenationalsecurityorsimilarconcernstopreventforeignpersonsfromacquiringsignificantownershipofour
commonstockorofourcompany.TheUSPSalsohasregulationsregardingthechangeofcontrolofapprovedPCPostageproviders.
Theseconcernsmayprohibitordelayamergerorothertakeoverofourcompany.OurcompetitorsmayalsoseektohavetheUSPS
blocktheacquisitionbyaforeignpersonofourcommonstockorourcompanyinordertopreventthecombinedcompanyfrom
becomingamoreeffectivecompetitorinthemarketforpostagesolutions.
Our stock price is volatile.
Thepriceatwhichourcommonstockhastradedhasfluctuatedsignificantly.Thepricemaycontinuetobevolatileduetoa
numberoffactors,includingthefollowing,someofwhicharebeyondourcontrol:
• variationsinouroperatingresults,
• variationsbetweenouractualoperatingresultsandtheexpectationsofsecuritiesanalysts,
• investorsandthefinancialcommunity,
• salesbystockholdersholdinglargerblocksofourstock,
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