Document:

Exhibit
10.2

 

SUPPLEMENTAL
AGREEMENT REGARDING

AMENDED
AND RESTATED EMPLOYMENT AGREEMENT

 

This
Supplemental Agreement Regarding Amended and Restated Employment Agreement (“Supplemental
Amendment”) is made and entered into as of the Effective Date (as defined
below), by and between SSA Global Technologies, Inc., a Delaware corporation (“Company”),
and Michael Greenough (“Executive”).

 

R
E C I T A L S

 

A.                                   Company
and Executive are all of the parties to that certain Amended and Restated
Employment Agreement, effective as of January 1, 2003 (“Employment
Agreement”).

 

B.                                     Company
has filed a Form S-1 Registration Statement under the Securities Act of 1933
with the Securities and Exchange Commission and anticipates effecting an
initial public offering of the shares of its common stock (“IPO”).

 

C.                                     Company
has approved a Special Management Bonus Plan providing for the payment of
bonuses to certain key executives of Company, including Executive, which
payments are contingent on the IPO becoming effective.

 

D.                                    The
Employment Agreement contains provisions designed to protect certain rights and
interests of Executive pending an IPO, which Employer and Executive agree
should be deleted from the Employment Agreement if the IPO becomes effective.

 

D.                                    In
consideration for Executive’s entering into this Supplemental Amendment and in
recognition of Executive’s exemplary performance on behalf of Company, Company
has authorized the payment to Executive of a special performance bonus, in
addition to his bonus under the Special Management Bonus Plan.

 

NOW,
THEREFORE, the parties hereto, intending to be legally bound, hereby agree as
follows:

 

1.                                       Definitions

 

(a)                                  Initially
capitalized terms when used in this Supplemental Agreement shall have the
meaning given to such terms in the Employment Agreement.

 

(b)                                 “Effective
Date” shall mean the date the IPO becomes effective.

 

2.                                       Special
Bonus No later than thirty (30) days after the Effective Date, and
inconsideration of Executive entering into this Supplemental Agreement, Company
shall pay Executive a one time, special cash bonus in the amount of
$957,170.00.  Simultaneously, Company
shall pay Executive a one-time special cash bonus under the Special Management
Bonus Plan in the amount of $2,122,348.00 
Both such bonus shall be paid net of all applicable income and
employment taxes which Company is required by law to withhold from such
payment.  The payment of such special
cash bonuses shall not be in lieu of, or otherwise impact,

 

 

Executive’s
eligibility to receive Target Bonuses with respect to the current fiscal year
of the Company pursuant to Paragraph (b) of Section 4 of the Employment
Agreement.

 

3.                                       Amendment                               The
Employment Agreement is hereby amended as follows effective as of the Effective
Date:

 

A.                                   Section 5
of the Employment Agreement is amended by deleting Subparagraph (a)(ii),
(a)(iv), (b)(vi)-(b)(b)(viii), (c)(iii), (d)(vi)-(vii) and (e)(iv) and
renumbering the remaining Subparagraphs consistent with such deletions.

 

B.                                     Section 5(v)
of the Employment Agreement is amended by deleting the definitions of the terms
“Alternative Amount” and “Deferred Bonus Amount”.

 

C.                                     The
foregoing amendments shall be given effect only if and when the IPO becomes
effective.

 

D.                                    Except
as expressly amended hereby, the Employment Agreement shall continue in full
force and effect.

 

4.                                       Options.  Effective July 31, 2003, Company granted
Executive an Option to purchase 203,715 shares of Company’s common stock with
an exercise price of $29.92 per share pursuant to the SSA Global Technologies,
Inc. 2003 Equity Incentive Plan and a Stock Option Agreement.  All references in the Stock Option Agreement
to the Employment Agreement, or any specific provision thereof, shall hereafter
be deemed to mean the Employment Agreement as amended by this Agreement.

 

IN WITNESS
WHEREOF, Company and Executive have executed this Agreement as of the date and
year noted above.

 

	
  SSA Global Technologies, Inc.

  	
  /s/ Michael Greenough

  	
   

  
	
   

  	
  Michael Greenough

  
	
  By:

  	
  /s/ Kirk Isaacson

  	
   

  	
   

  
	
   

  	
   

  
	
  Title:

  	
  EVP & General Counsel

  	
   

  	
   

  
						

 

2Exhibit 10.5

 

AGREEMENT GOVERNING SEVERANCE OBLIGATIONS

AND

TERMINATION OF EMPLOYMENT

 

This Agreement
is made and entered into by and between SSA Global Technologies, Inc., N/A [insert subsidiary name for non-US based executives]
(collectively and singularly “SSA”) and KIRK ISAACSON (“You”), and sets forth
the terms and conditions governing SSA’s severance obligations and termination
of employment.

 

Whereas,
You are currently employed by SSA in a key management
and/or operational role; and

 

Whereas,
SSA desires to clarify any current understanding with You
with respect to severance obligations of SSA in the event of your termination
of employment.

 

Now
Therefore, for good and valuable consideration receipt
of which is hereby acknowledged, we agree as follows:

 

In lieu of any
claimed entitlement or other understanding, whether verbal or written and
whether arising by contract, statute, regulation or otherwise, it is agreed
that SSA’s obligation for severance and any other compensation (excluding the
treatment of any stock options or other incentive rights as may be granted to
you pursuant to SSA’s equity incentive plan), if any, due to You in the event
of the termination of your employment shall be determined in accordance with
the following:

 

1.   Severance Calculation. 
SSA may terminate your employment at any time with or without
cause.  Subject to Paragraph 4, below, if
SSA terminates your employment for any reason other than “For Cause” (as
hereinafter defined), in which event SSA shall provide you with no less than
thirty (30) days prior written notice, or You terminate your employment with
Good Reason (as hereinafter defined), upon the effective date of your
termination of employment (“Termination Date”), You will be entitled to the
following:

 

(a)   Payment
of any accrued but unpaid base salary through the Termination Date and any
unpaid bonus earned but not yet paid with respect to any prior fiscal quarter;
and

 

(b)   Continuation
of payment of your base salary for TWELVE (12) months; said payments to be made
periodically in accordance with SSA’s local payroll practices;

 

(c)   If
applicable, continuation for a period of FOUR (4) fiscal quarters (inclusive of
the fiscal quarter applicable to your actual Termination Date) of fifty percent
(50%) of your quarterly base target bonus (based on 100% achievement and
exclusive of any multipliers); said payments to be made on a quarterly basis in
accordance with SSA’s local practices; and

 

(d)   If
applicable, a pro rata portion of your annual target bonus (based on 100%
achievement and exclusive of any multipliers) for the fiscal year in which such
termination occurs, determined by multiplying fifty percent (50%) of your
annual target bonus by a fraction the numerator of which is the number of days
in the fiscal year prior to the Termination Date and the denominator of which
is 365 (such amount to be paid to you at the end of SSA’s then current fiscal
year in accordance with SSA’s local practice).

 

2.   Termination for Cause. 
For termination of your employment by SSA based on “For Cause,” if a
cure is possible SSA shall provide You with two (2) weeks notice of the events
giving rise to a possible

 

 

“For Cause”
termination and provide You with the opportunity to
cure the “cause.” A termination “For Cause” shall take effect on the date
notice is given, if the “cause” is incurable, or two (2) weeks after notice if
given, if the “cause” is curable but remains uncured at that time.  For purposes of this Agreement, “For Cause”
means:

 

(a)   the willful and continued failure by You to
substantially to perform your duties and responsibilities;

 

(b)   a breach by You of a written policy of SSA that has a
material detrimental effect on the company; or

 

(d)   any fraudulent, unlawful, grossly negligent, dishonest or
willful misconduct engaged in by You;

 

(e)   your refusal to follow a reasonable, achievable and lawful
directive of your manager;

 

(f)   the commission by You of any felony crime involving moral
turpitude or that impairs your ability to perform your assigned functions and
responsibilities; or

 

(g)   your improper and material disclosure or use of SSA’s
confidential information.

 

In the event
your employment is terminated for cause, you shall be entitled to no
compensation or benefits other than those earned through the effective date of
your termination.

 

3.   Termination by You. 
You may terminate your employment with SSA at any time, with or without “Good
Reason” (as defined below), upon no less than ninety (90) days prior written
notice to SSA.  For purposes of this
Agreement, “Good Reason” means any of the following conditions, which
condition(s) remain(s) in effect thirty (30) days after written notice by You to the Chief Executive Officer of SSA Global
Technologies, Inc. of such conditions:

 

(i) Any decrease in your base salary greater
than thirty-three percent (33%) of your then most recent base salary; it being
agreed that the your base salary will only be reduced by up to thirty-three
percent (33%) as part of a general decrease in the base salary of similarly affected
employees and as part of a general cost reduction exercise;

 

(ii) If applicable, any decrease in the
amount of total annual base bonus potential (exclusive of any multipliers)
awarded to You with respect to a fiscal year which decrease is greater then
thirty-three percent (33%) of your then most recent assigned base bonus; it
being agreed that the your base bonus will only be reduced by up to
thirty-three percent (33%) as part of a general decrease in the base salary of
similarly affected employees and as part of a general cost reduction
exercise.  In addition, it is agreed
that:  (a) any change by SSA in the
underlying determining factor(s) including, but not limited to, the
reallocation of percentages assigned to each determining factor used by SSA
when calculating any bonus; (b) any change by SSA in the application of
multipliers to the base bonus amount will, not constitute Good Reason; and/or
(c) non-payment to You of bonus compensation because of your failure to achieve
reasonable performance milestones will not constitute Good Reason; or

 

(iii) Any successor to SSA Global
Technologies, Inc. (or its business) fails in any acquisition of SSA Global
Technologies, Inc. (or its business), or any other reorganization or Change in
Control, as defined the SSA Global Technologies, Inc.’s equity incentive plan)
does not agree in writing to

 

2

 

assume, in full, all of the obligations of
SSA as set forth in this Agreement and any other offer letter, Employment
Agreement or other document previously entered into between SSA Global
Technologies, Inc. and your person, it being expressly understood that this
Agreement shall supersede any conflicting terms set forth elsewhere that relate
to termination of employment, severance obligations and any other subject
matter set forth herein.

 

In the event
you voluntarily terminate your employment for any other reason other than for
Good Reason you shall be entitled to no compensation or benefits other than
those earned through the effective date of your termination.

 

4.   Payment Contingencies. 
Payment of any amounts to You hereunder is contingent upon (except in
cases of death):  (i) your first entering
into an agreement that releases SSA, its subsidiaries, officers, directors and
employees from actions, suits, claims, proceedings and demands related to your
period of employment and/or your termination of employment; (ii) SSA being
permitted to offset any salary paid to you during any notice period as provided
for herein (or as otherwise agreed upon by SSA in writing or, if applicable, as
may be required pursuant to any local law, regulation or statute) if You
perform no services during such notice period; (iii) your returning, in
good condition, all property belonging to SSA; and (iv) your remaining in
compliance with his obligations of confidentiality including, without
limitation, your adherence to any restrictions placed upon your subsequent
employment opportunities pursuant to separate agreement with SSA.  In addition, You
agree that to the extent permitted by the local laws, the notice period(s) and
severance payment obligations, as set forth in this Agreement shall be in lieu
of any other obligations, statutory or otherwise, relating to your term of
employment, notice obligations and/or termination of employment.

 

5.   Treatment of Stock Options.  With respect to any stock options and/or
other forms of equity rights that may be granted to You in accordance with the
terms of SSA Global Technologies, Inc.’s equity incentive plan (including any
successor plan), the vesting of such options and rights together with the terms
and conditions governing the exercise of such options and rights shall be
determined solely in accordance with the terms of such plan(s).

 

6.   Other.  You and
SSA agree that this Agreement shall be interpreted in accordance with and
governed by the laws of the State of Illinois. 
In addition, this Agreement shall inure to the benefit of and be binding
upon SSA and its successors and assigns. 
In view of the personal nature of the services to be performed by You,
You shall not have the right to assign or transfer any of the rights,
obligations of benefits under this Agreement unless expressly provided for
herein.  This Agreement will be of no
force and effect until acknowledged by the local SSA subsidiary, if applicable
(your employer), and thereafter counter-signed by SSA Global Technologies, Inc.

 

By
your signature below, You agree that this Agreement:  (a) supercedes any prior understanding,
whether in writing or verbal, between your person and SSA with respect to the
subject matter hereof; and (b) is in lieu of and inclusive of any common law or
statutory claims that you have or may have with respect to your termination of
employment and the payment by SSA of severance payments, howsoever classified.

 

	
  Agreed to By:

  	
  /s/ KIRK
  ISAACSON      12/01/04

  	
   

  
	
   

  	
  Kirk Isaacson

  	
   

  
	
   

  
	
  Agreed to By:

  	
  /s/ JOHN
  R. WALLES

  	
   

  
	
   

  	
  SSA Global Technologies, Inc.

  	
   

  

 

3

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