Document:

Exhibit
10.7

 

SSA
Global Technologies, Inc.

 

Management
Lock-Up Agreement

 

April 25, 2005

 

SSA Global Technologies, Inc.

500 W. Madison

Suite 1600

Chicago, Illinois 60661

 

Re:  SSA Global Technologies, Inc. –
Management Lock-Up Agreement

 

Dear Sirs:

 

In
connection with the public offering of shares of common stock, par value
$.01 per share, of SSA Global Technologies, Inc. (the “Company”) (the “Common
Stock”), pursuant to a Registration Statement on Form S-1 (File No. 333-116156)
originally filed with the Securities and Exchange Commission (the “SEC”) on June 3,
2004 (as amended, the “Registration Statement”), the undersigned agrees that, commencing on the date that the
Registration Statement is declared effective by the SEC (the “Effective Date”),
and during the period specified below (the “Lock-Up Period”), the undersigned
will not offer, sell, contract to sell, pledge, grant any option to purchase,
make any short sale or otherwise dispose of any shares of Common Stock of the
Company, owned directly by the undersigned (including holding as a custodian)
or with respect to which the undersigned has beneficial ownership within the rules and
regulations of the SEC (collectively the “Undersigned’s Shares”).  This Lock-Up Agreement shall not apply to any
shares of Common Stock of the Company acquired by the undersigned on the open
market after the Effective Date.

 

The foregoing restriction
is expressly agreed to preclude the undersigned from engaging in any hedging or
other transaction which is designed to or which reasonably could be expected to
lead to or result in a sale or disposition of the Undersigned’s Shares even if
such Shares would be disposed of by someone other than the undersigned.  Such prohibited hedging or other transactions
would include without limitation any short sale or any purchase, sale or grant
of any right (including without limitation any put or call option) with respect
to any of the Undersigned’s Shares or with respect to any security that
includes, relates to, or derives any significant part of its value from such
Shares.

 

The Lock-Up Period will
commence on the Effective Date and continue until the three-year anniversary of
the Effective Date or until the earlier (i) death of the undersigned, (ii) termination
by the Company of the undersigned’s employment with the Company without Cause
(as defined below) or on account of the undersigned’s Disability (as defined
below), or (iii) termination by the undersigned of his or her employment
with the Company for Good Reason (as defined below).  To the extent that, during the Lock-Up
Period, Cerberus Capital Management, L.P., General Altantic Partners LLC or any
of their respective affiliates (each a “Shareholder”) sells shares of Common
Stock of the Company either as a result of the release of the Shareholder from
any lock-up agreement entered into with J.P. Morgan Securities Inc. and
Citigroup Global Markets Inc. as the representatives of the underwriters in
connection with the offering contemplated in the Registration Statement or
following the expiration thereof, then the undersigned shall be permitted to
sell a number of shares that is equal to (a) the number of its shares
subject to this Lock-Up Agreement on the Effective Date multiplied  by
(b) a fraction, of which the

 

 

numerator is the number
of shares of Common Stock to be sold by the Shareholder and the denominator is
the total number of shares held by all of the Shareholders on the Effective
Date.  In addition, the undersigned shall
be permitted to sell that number of shares as may be approved by the
Compensation Committee of the Board of Directors of the Company from time to
time.  The remaining of the Undersigned’s
Shares shall continue to be subject to the terms and conditions set forth
herein.

 

Notwithstanding the
foregoing, the undersigned may transfer the Undersigned’s Shares (i) as a bona fide gift or gifts, provided that the donee or donees
thereof agree to be bound in writing by the restrictions set forth herein or (ii) to
any trust for the direct or indirect benefit of the undersigned or the
immediate family of the undersigned, provided that the trustee of the trust
agrees to be bound in writing by the restrictions set forth herein, and
provided further that any such transfer shall not involve a disposition for
value.  For purposes of this Lock-Up
Agreement, “immediate family” shall mean any relationship by blood, marriage or
adoption, not more remote than first cousin. 
The undersigned now has, and, except as contemplated by clauses (i) and
(ii) above, for the duration of this Lock-Up Agreement will have, good and
marketable title to the Undersigned’s Shares, free and clear of all liens,
encumbrances, and claims whatsoever.  The
undersigned also agrees and consents to the entry of stop transfer instructions
with the Company’s transfer agent and registrar against the transfer of the
Undersigned’s Shares except in compliance with the foregoing restrictions.

 

For purposes of this
Lock-Up Agreement, the following terms have the meanings set forth below:

 

“Cause”
means any of the following reasons: (i) embezzlement, dishonesty, or
fraud; (ii) conviction (or plea of nolo contendere) for a felony or
conviction (or plea of nolo contendere) of any crime involving moral turpitude
or that impairs undersigned’s ability to perform his duties; (iii) improper
and material disclosure or use of the Company’s or any of its subsidiary’s
confidential or proprietary information; or (iv) the undersigned’s willful
failure or refusal to follow the lawful and good faith direction of the Company
or any subsidiary thereof to perform his material duties which, if curable,
remains uncured following thirty (30) days’ written notice to the undersigned
from the Company or any subsidiary thereof describing such failure or refusal.

 

“Disability”
means a determination by the Company in accordance with applicable law that, as
a result of a physical or mental illness, the undersigned is unable and has
been unable to perform the essential functions of his or her job with or
without reasonable accommodation for a period of (i) 90 consecutive days
or (ii) 180 days in any one (1) year period.

 

“Good
Reason” means a decrease in undersigned’s base salary (not consented to in
advance by undersigned or ratified subsequently by undersigned) or a Change of
Control (as defined below).

 

“Change
of Control” means (i) the approval by the shareholders of the Company
of a plan of complete liquidation or dissolution of the Company, (ii) the
consummation of a sale of all or substantially all of the assets of the
Company; (iii) the consummation of any transaction as a result of which
any individual or entity (other than Cerberus Capital Management, L.P., General
Atlantic Partners 76, L.P. or any of their related entities or affiliates)
becomes the “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Company
representing more than fifty percent (50%) of the total voting power of all
voting securities of the Company then issued and outstanding; or (iv) the
consummation of a merger, consolidation, reorganization, or business
combination, other than a merger, consolidation, reorganization or business
combination which would result in the voting securities of the Company
outstanding immediately prior

 

 

thereto continuing
to represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity) more than fifty percent (50%) of the
combined voting securities of the Company or the surviving entity immediately
after such merger, consolidation, reorganization of business combination.

 

The
undersigned understands and agrees that this Lock-Up Agreement is irrevocable
and shall be binding upon the undersigned’s heirs, legal representatives,
successors, and assigns.

 

The undersigned has received a copy of the Company’s
Statement of Policy: Securities Trades by SSA Global Employees, and the
undersigned agrees to be bound by, and to comply with, the foregoing policy, as
it may be amended from time to time.

 

This Lock-Up Agreement
may be executed in two counterparts, each of which shall be deemed an original
but both of which shall be considered one and the same instrument.

 

This Lock-Up Agreement
will be governed by and construed in accordance with the laws of the State of
New York, without giving effect to any choice of law or conflicting provision
or rule (whether of the State of New York or any other jurisdiction) that
would cause the laws of any jurisdiction other than the State of New York to be
applied.  In furtherance of the
foregoing, the internal laws of the State of New York will control the
interpretation and construction of this Lock-Up Agreement, even if under such
jurisdiction’s choice of law or conflict of law analysis, the substantive law
of some other jurisdiction would ordinarily apply.

 

This Lock-Up Agreement
shall lapse and become null and void on June 30, 2005 if the public
offering contemplated by the Registration Statement shall not have occurred on
or before such date.

 

	
   

  	
  Very truly yours,

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Stephen Earhart

  	
   

  
	
   

  	
  Exact Name of
  Shareholder

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Stephen Earhart

  	
   

  
	
   

  	
  Authorized Signature

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CFO SSA Global

  	
   

  
	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  
	
  Agreed to and
  Acknowledged:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SSA Global
  Technologies, Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Kirk J. Isaacson

  	
   

  	
   

  
	
   

  	
  Name: Kirk J. Isaacson

  	
   

  
	
   

  	
  Title: Executive Vice
  President 

   & General CounselExhibit 10.13

 

[SSA GLOBAL
TECHNOLOGIES, INC. LETTERHEAD]

 

April 25, 2005

 

Graeme Cooksley

 

Dear Graeme:

 

This letter
constitutes an agreement between SSA Global Technologies, Inc. (the “Company”)
and you (the “Executive”) regarding certain terms and conditions related to
your continued employment with the Company and its subsidiaries.  The terms of this letter shall only become
effective on the effective date of the Company’s initial public offering (the “Effective
Date”).  By signing this letter agreement
(“Agreement”), the Executive agrees to the terms and conditions set forth
herein.

 

1.             Term.  This Agreement and the employment
relationship hereunder shall continue from the Effective Date until the third
anniversary of the Effective Date (the “Term”). 
In the event that the Executive’s employment with the Company terminates
during the Term, the Company’s obligation to continue to pay all base salary,
bonus and other benefits then accrued shall terminate except as may be provided
for in Section 2 of this Agreement. 
If the Executive remains employed by the Company upon the expiration of
the Term, his employment will continue on the terms and conditions in effect
prior to this Agreement and shall not be subject to the terms of this
Agreement.

 

2.             Termination of Employment.  The Executive’s employment may be terminated
at any time prior to the end of the Term by the Company with or without Cause
(as defined below) or by the Executive with or without Good Reason (as defined
below).

 

If the
Executive’s employment with the Company is terminated by the Company without “Cause”
or by the Executive with “Good Reason,” at any time from the Effective Date
until the third anniversary of the Effective Date (the “Term”), the Executive
shall receive continued base salary and bonus (based upon the yearly average
bonus achieved in the prior twenty-four (24) months) for the remaining duration
of the Term as if the Executive remained employed until the third anniversary
of the Effective Date, payable on the dates coinciding with the Company’s
regular payroll.  The payments set forth
above shall be in addition to any severance benefits to be provided to the
Executive pursuant to the terms of any severance agreement between the Company
and the Executive and/or the Company’s applicable severance plan upon a
termination of employment.

 

If during the
Term: (i) the Executive dies; (ii) the Company terminates the
Executive’s employment with the Company for Cause; (iii) the Company
terminates the Executive’s employment with the Company as a result of the
Executive’s Disability (as defined below); or (iv) Executive terminates
his employment without Good Reason, the Executive, or the Executive’s legal
representatives (as appropriate), shall be entitled to receive Executive’s
accrued but unpaid base salary, if any, to the date of termination.

 

 

For purposes of this Agreement, “Cause” shall
mean (i) embezzlement, dishonesty, or fraud; (ii) conviction
(or plea of nolo contendere) for a felony or conviction (or plea of nolo
contendere) of any crime involving moral turpitude or that impairs Executive’s
ability to perform his duties; (iii) improper and material disclosure or
use of the Company’s or a subsidiary’s confidential or proprietary information;
or (iv) Executive’s willful failure or refusal to follow the lawful and
good faith direction of the Company or a subsidiary to perform his material
duties which, if curable, remains uncured following thirty (30) days’ written
notice to Executive from the Company or a subsidiary describing such failure or
refusal.

 

For the purposes of this Agreement, “Good
Reason” shall mean a decrease in Executive’s base salary (not consented to in
advance by Executive or ratified subsequently by Executive).

 

For purposes of this Agreement, “Disability”
means a determination by the Company in accordance with applicable law that, as
a result of a physical or mental illness, the Executive is unable and has been
unable to perform the essential functions of his job with or without reasonable
accommodation for a period of (i) 90 consecutive days or (ii) 180
days in any one (1) year period.

 

3.             Change of Control.  In the event of a “Change of Control” (as
defined below), the Company shall be obligated to obtain the express assumption
of the Company’s obligations to the Executive as described herein by any person
that becomes the successor or assign of the Company as a result of such
event.  In the event that the Company
does not obtain such assumption in connection with a Change of Control event
which results in a successor or assign of the Company, the Executive may
terminate his employment for Good Reason.

 

For the purposes of this Agreement, “Change of Control” shall mean (i) the
approval by the shareholders of the Company of a plan of complete liquidation
or dissolution of the Company, (ii) the consummation of a sale of all or
substantially all of the assets of the Company; (iii) the consummation of
any transaction as a result of which any individual or entity (other than
Cerberus Capital Management, L.P., General Atlantic Partners 76, L.P. or any of
their related entities or affiliates) becomes the “beneficial owner” (as
defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Company representing more than fifty percent
(50%) of the total voting power of all voting securities of the Company then
issued and outstanding; or (iv) the consummation of a merger,
consolidation, reorganization, or business combination, other than a merger,
consolidation, reorganization or business combination which would result in the
voting securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity) more than fifty percent (50%)
of the combined voting securities of the Company or the surviving entity
immediately after such merger, consolidation, reorganization of business
combination.

 

4.             Notices.  Any notice or other communication required or
which may be given hereunder shall be in writing and shall be delivered
personally, telegraphed, telexed, sent by facsimile transmission or sent by
certified, registered or express mail, postage prepaid or overnight mail and
shall be deemed given when so delivered personally, telegraphed, telexed, or

 

2

 

sent by facsimile transmission or, if mailed,
four (4) days after the date of mailing or one (1) day after
overnight mail, as follows:

 

If the
Company, to:

 

SSA Global
Technologies, Inc.

500 West Madison
Street

Chicago,
Illinois 60661

Attention:  Board of Directors & General Counsel

Telephone:

Fax:

 

And to:

 

Schulte Roth & Zabel LLP

919 Third
Avenue

New York,
NY  10022

	
  Attention:

  	
   

  	
  Robert B. Loper, Esq.

  
	
  Telephone:

  	
   

  	
  (212) 756-2000

  
	
  Fax:

  	
   

  	
  (212) 593-5955

  

 

If the
Executive, to the Executive’s home address reflected in the Company’s records.

 

5.             Governing Law, Dispute
Resolution and Venue.  This Agreement
shall be governed and construed in accordance with the laws of the State of New
York applicable to agreements made and not to be performed entirely within such
state, without regard to conflicts of laws principles.

 

The parties
agree irrevocably to submit to the exclusive jurisdiction of the federal courts
or, if no federal jurisdiction exists, the state courts, located in the City of
New York, Borough of Manhattan, for the purposes of any suit, action or other
proceeding brought by any party arising out of any breach of any of the
provisions of this Agreement and hereby waive, and agree not to assert by way
of motion, as a defense or otherwise, in any such suit, action, or proceeding,
any claim that it is not personally subject to the jurisdiction of the
above-named courts, that the suit, action or proceeding is brought in an
inconvenient forum, that the venue of the suit, action or proceeding is
improper, or that the provisions of this Agreement may not be enforced in or by
such courts.  In addition, the parties
agree to the waiver of a jury trial.

 

6.             Assignability by the Company and
the Executive.  This Agreement, and
the rights and obligations hereunder, may not be assigned by the Company or the
Executive without written consent signed by the other party; provided that the Company
may assign the Agreement to any successor that continues the business of the
Company or purchases all or substantially all of the business and assets of the
Company.

 

7.             Counterparts.  This Agreement may be executed in
counterparts, each of which shall be deemed an original but all of which shall
constitute one and the same instrument.

 

3

 

8.             Headings.  The headings in this Agreement are for
convenience of reference only and shall not limit or otherwise affect the
meaning of terms contained herein.

 

9.             Severability.  If any term, provision, covenant or
restriction of this Agreement, or any part thereof, is held by a court of
competent jurisdiction of any foreign, federal, state, county or local
government or any other governmental, regulatory or administrative agency or
authority to be invalid, void, unenforceable or against public policy for any
reason, the remainder of the terms, provisions, covenants and restrictions of
this Agreement shall remain in full force and effect and shall in no way be
affected or impaired or invalidated.

 

10.           Tax Withholding.  The Company or other payor is authorized to
withhold from any benefit provided or payment due hereunder, the amount of
withholding taxes due to any federal, state or local authority in respect of
such benefit or payment and to take such other action as may be necessary in
the opinion of the Board of Directors of the Company to satisfy all obligations
for the payment of such withholding taxes.

 

11.           Prior Agreements.  Except as otherwise set forth herein, the
terms of any prior agreements between the Executive and the Company shall remain
in full force and effect. 

 

4

 

IN WITNESS WHEREOF, the Parties hereto, intending to be legally bound
hereby, have executed this Agreement as of the day and year first above
mentioned.

 

	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Graeme
  Roy Cooksley

  
	
   

  	
  Name: Graeme
  Roy Cooksley

  
	
   

  	
   

  	
   

  
	
   

  	
  SSA GLOBAL
  TECHNOLOGIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kirk J.
  Isaacson

  
	
   

  	
  Name:

  	
  Kirk J.
  Isaacson

  
	
   

  	
  Title:

  	
  Executive
  Vice President-General Counsel

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