SEC FORM 5

SEC Form 5

FORM 5

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

ANNUAL STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

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Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

Form 3 Holdings Reported.

Form 4 Transactions Reported.

1. Name and Address of Reporting Person^*

COLLIGAN EDWARD T

(Last)

(First)

(Middle)

C/O PALM,INC.

950 WEST MAUDE AVE

(Street)

SUNNYVALE

94085

(City)

(State)

(Zip)

2. Issuer Name and Ticker or Trading Symbol
PALM INC [ PALM ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

X	Director	10% Owner
X	Officer (give title below)	Other (specify below)
	President & CEO

3. Statement for Issuer's Fiscal Year Ended (Month/Day/Year)
05/30/2008

4. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)	4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned at end of Issuer's Fiscal Year (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)	Amount	(A) or (D)	Price		6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)	5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares	8. Price of Derivative Security (Instr. 5)		10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
Non-Qualified Stock Option (right to buy)	$5.541⁽¹⁾	10/08/2004		J	430,000⁽¹⁾		10/08/2005	10/08/2014	Common Stock	430,000⁽¹⁾	$0	430,000⁽¹⁾	D
Non-Qualified Stock Option (right to buy)	$4.251⁽²⁾	12/12/2006		J	310,000⁽²⁾		12/12/2007	12/12/2013	Common Stock	310,000⁽²⁾	$0	310,000⁽²⁾	D
Non-Qualified Stock Option (right to buy)	$2.057⁽³⁾	10/29/2003		J	75,814⁽³⁾		10/29/2003	10/29/2013	Common Stock	75,814⁽³⁾	$0	75,814⁽³⁾	D
Non-Qualified Stock Option (right to buy)	$0.136⁽⁴⁾	10/29/2003		J	699,607⁽⁴⁾		10/29/2003	10/29/2013	Common Stock	699,607⁽⁴⁾	$0	699,607⁽⁴⁾	D
Non-Qualified Stock Option (right to buy)	$2.207⁽⁵⁾	10/29/2003		J	70,553⁽⁵⁾		10/29/2003	10/29/2013	Common Stock	70,553⁽⁵⁾	$0	70,553⁽⁵⁾	D
Non-Qualified Stock Option (right to buy)	$4.041⁽⁶⁾	06/06/2005		J	430,000⁽⁶⁾		06/06/2006	06/06/2015	Common Stock	430,000⁽⁶⁾	$0	430,000⁽⁶⁾	D

Explanation of Responses:

1. This option was previously reported as covering 430,000 shares at an exercise price of $15.30 per share, but was adjusted to reflect the stock option adjustments that occurred as of October 24, 2007 in connection with Palm's recapitalization transaction with Elevation Partners and related cash distribution as described in Palm's definitive proxy statement filed on August 10, 2007.

2. This option was previously reported as covering 310,000 shares at an exercise price of $14.01 per share, but was adjusted to reflect the stock option adjustments that occurred as of October 24, 2007 in connection with Palm's recapitalization transaction with Elevation Partners and related cash distribution as described in Palm's definitive proxy statement filed on August 10, 2007.

3. This option was previously reported as covering 36,000 shares at an exercise price of $4.33 per share, but was adjusted to reflect the stock option adjustments that occurred as of October 24, 2007 in connection with Palm's recapitalization transaction with Elevation Partners and related cash distribution as described in Palm's definitive proxy statement filed on August 10, 2007.

4. This option was previously reported as covering 332,202 shares at an exercise price of $0.2850 per share, but was adjusted to reflect the stock option adjustments that occurred as of October 24, 2007 in connection with Palm's recapitalization transaction with Elevation Partners and related cash distribution as described in Palm's definitive proxy statement filed on August 10, 2007.

5. This option was previously reported as covering 36,000 shares at an exercise price of $5.6150 per share, but was adjusted to reflect the stock option adjustments that occurred as of October 24, 2007 in connection with Palm's recapitalization transaction with Elevation Partners and related cash distribution as described in Palm's definitive proxy statement filed on August 10, 2007.

6. This option was previously reported as covering 430,000 shares at an exercise price of $13.80 per share, but was adjusted to reflect the stock option adjustments that occurred as of October 24, 2007 in connection with Palm's recapitalization transaction with Elevation Partners and related cash distribution as described in Palm's definitive proxy statement filed on August 10, 2007.

	Karen L. Harrison, Attorney-in-Fact For: Edward T. Colligan	06/13/2008
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
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