Document:

exv10w1

 

Exhibit 10.1

STOCK PURCHASE AGREEMENT

By and Between

DIAMONDCLUSTER INTERNATIONAL B.V.,

And

MERCER MANAGEMENT CONSULTING, INC.

July 19, 2006

 

 

Table of Contents

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	ARTICLE I
	 	PURCHASE AND SALE OF SHARES	 	 	1	 
	1.01
	 	Purchase and Sale of Shares	 	 	1	 
	1.02
	 	Purchase Price	 	 	1	 
	1.03
	 	The Closing	 	 	4	 
	1.04
	 	Escrow	 	 	4	 
	1.05
	 	Pre-Closing and Simultaneous Transactions	 	 	5	 
	 
	 	 	 	 	 	 
	ARTICLE II
	 	CONDITIONS TO CLOSING	 	 	6	 
	2.01
	 	Conditions to Buyer’s Obligations	 	 	6	 
	2.02
	 	Conditions to Seller’s Obligations	 	 	7	 
	 
	 	 	 	 	 	 
	ARTICLE III
	 	REPRESENTATIONS AND WARRANTIES OF SELLER	 	 	8	 
	3.01
	 	Execution, Delivery; Valid and Binding Agreements	 	 	8	 
	3.02
	 	Organization; Authority	 	 	8	 
	3.03
	 	Ownership of Capital Stock	 	 	9	 
	3.04
	 	Brokerage	 	 	9	 
	3.05
	 	No Violation	 	 	9	 
	3.06
	 	Litigation	 	 	9	 
	 
	 	 	 	 	 	 
	ARTICLE IV
	 	REPRESENTATIONS AND WARRANTIES OF SELLER FOR EACH COMPANY	 	 	9	 
	4.01
	 	Organization and Corporate Power	 	 	9	 
	4.02
	 	Subsidiaries	 	 	9	 
	4.03
	 	Authorization; No Breach	 	 	10	 
	4.04
	 	Capital Stock	 	 	10	 
	4.05
	 	Financial Statements	 	 	10	 
	4.06
	 	Absence of Certain Developments	 	 	10	 
	4.07
	 	Title to Properties	 	 	11	 
	4.08
	 	Tax Matters	 	 	12	 
	4.09
	 	Contracts and Commitments	 	 	13	 
	4.10
	 	Intellectual Property	 	 	14	 
	4.11
	 	Litigation	 	 	14	 
	4.12
	 	Brokerage	 	 	14	 
	4.13
	 	Books and Records	 	 	14	 
	4.14
	 	Employees; Employee Benefit Plans	 	 	15	 
	4.15
	 	Insurance	 	 	15	 
	4.16
	 	Compliance with Laws	 	 	15	 
	4.17
	 	Undisclosed Liabilites	 	 	15	 
	4.18
	 	Clients	 	 	15	 
	4.19
	 	Environmental Laws and Regulations	 	 	16	 
	4.20
	 	Affiliate Transactions	 	 	16	 

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	 	 	 	 	Page	 
	ARTICLE V
	 	REPRESENTATIONS AND WARRANTIES OF BUYER	 	 	16	 
	5.01
	 	Organization and Corporate Power	 	 	16	 
	5.02
	 	Authorization	 	 	17	 
	5.03
	 	No Violation	 	 	17	 
	5.04
	 	Governmental Authorities; Consents	 	 	17	 
	5.05
	 	Litigation	 	 	17	 
	5.06
	 	Brokerage	 	 	17	 
	5.07
	 	Investment Representation	 	 	17	 
	5.08
	 	Financing	 	 	17	 
	 
	 	 	 	 	 	 
	ARTICLE VI
	 	PRE-CLOSING COVENANTS OF SELLER	 	 	18	 
	6.01
	 	Conduct of the Business	 	 	18	 
	6.02
	 	Access to Books and Records	 	 	19	 
	6.03
	 	Notification	 	 	19	 
	6.04
	 	Regulatory Filings	 	 	19	 
	6.05
	 	Conditions	 	 	19	 
	6.06
	 	Bonus Accrual	 	 	19	 
	6.07
	 	Employee Equity Awards	 	 	19	 
	6.08
	 	Brazil Withholding Tax	 	 	19	 
	 
	 	 	 	 	 	 
	ARTICLE VII
	 	COVENANTS OF BUYER	 	 	20	 
	7.01
	 	Access to Books and Records	 	 	20	 
	7.02
	 	Notification	 	 	20	 
	7.03
	 	Regulatory Filings	 	 	20	 
	7.04
	 	Conditions	 	 	20	 
	7.05
	 	Contact with Customers and Suppliers	 	 	21	 
	7.06
	 	Maintain Employee Benefits	 	 	21	 
	 
	 	 	 	 	 	 
	ARTICLE VIII
	 	INDEMNIFICATION	 	 	21	 
	8.01
	 	General	 	 	21	 
	8.02
	 	Seller's Indemnification Obligations	 	 	21	 
	8.03
	 	Limitation on Seller's Indemnification Obligations	 	 	21	 
	8.04
	 	Buyer's Indemnification Obligations	 	 	24	 
	8.05
	 	Limitation on Buyer's Indemnification Obligations	 	 	24	 
	8.06
	 	Cooperation	 	 	25	 
	8.07
	 	Third Party Claims	 	 	25	 
	8.08
	 	Calculation of Damages	 	 	27	 
	8.09
	 	Indemnification Exclusive Remedy	 	 	27	 
	8.10
	 	Tax Effect of Indemnificatoin Payments	 	 	27	 
	 
	 	 	 	 	 	 
	ARTICLE IX
	 	TERMINATION	 	 	27	 
	9.01
	 	Termination	 	 	27	 
	9.02
	 	Effect of Termination	 	 	28	 

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	 	 	 	 	Page	 
	ARTICLE X
	 	ADDITIONAL COVENANTS	 	 	28	 
	10.01
	 	Survival	 	 	28	 
	10.02
	 	Disclosure Generally	 	 	29	 
	10.03
	 	Acknowledgment by Buyer	 	 	29	 
	10.04
	 	Arbitration Procedure.	 	 	29	 
	10.05
	 	Tax Matters.	 	 	31	 
	10.06
	 	Further Assurances	 	 	33	 
	10.07
	 	Non-Competition; Non-Solicitation	 	 	33	 
	10.08
	 	Spanish Tax Claims	 	 	35	 
	10.09
	 	Trademarks and Trade Names	 	 	35	 
	10.10
	 	Confidentiality	 	 	35	 
	10.11
	 	Uncollected Receivables	 	 	35	 
	10.12
	 	Email Transition	 	 	36	 
	10.13
	 	UK Employment Claims	 	 	36	 
	 
	 	 	 	 	 	 
	ARTICLE XI
	 	DEFINITIONS	 	 	36	 
	 
	 	 	 	 	 	 
	ARTICLE XII
	 	MISCELLANEOUS	 	 	41	 
	12.01
	 	Press Releases and Communications	 	 	41	 
	12.02
	 	Expenses	 	 	41	 
	12.03
	 	Notices	 	 	42	 
	12.04
	 	Assignment	 	 	42	 
	12.05
	 	Severability	 	 	43	 
	12.06
	 	No Strict Construction	 	 	43	 
	12.07
	 	Amendment and Waiver	 	 	43	 
	12.08
	 	Complete Agreement	 	 	43	 
	12.09
	 	Counterparts	 	 	43	 
	12.10
	 	Governing Law	 	 	43	 

Annex 1 – Subsidiaries

Annex 2 – Guaranty of Payment and Performance

Schedule 1.02(b)(i) – Working Capital Amount

Schedule 1.02(c) – Purchase Price Allocation

Schedule 1.05(a) – UK Telecom Employees

Schedule 1.05(c) – Middle East Transition Employees

Other Schedules

Exhibit A – Form of Escrow Agreement

Exhibit B – Form of UK Comfort Letter

Exhibit C – Contingent Payment Methodology

Exhibit D – Form of Trademark Assignment

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STOCK PURCHASE AGREEMENT

                    THIS AGREEMENT is made on July 19, 2006, by and between DIAMONDCLUSTER INTERNATIONAL
B.V., a company incorporated with limited liability under the laws of the Netherlands (the
“Seller”); and MERCER MANAGEMENT CONSULTING, INC., a Delaware corporation
(“Buyer”). Unless otherwise provided, capitalized terms used herein are defined in
Article XI below.

                    WHEREAS, DiamondCluster International, Inc., a Delaware corporation (“Parent”) owns
all of the issued and outstanding shares of common stock of the Seller; and

                    WHEREAS, Seller owns, directly or indirectly, all of the issued and outstanding equity
interests in the entities listed on Annex 1 attached hereto (such equity interests collectively
being referred to herein as the “Shares”) (each such entity listed on Annex 1 shall be
referred to herein as a “Company” and collectively, the “Companies”); and

                    WHEREAS, Seller desires to sell, and Buyer desires to purchase, the Shares on the terms and
subject to the conditions set forth in this Agreement.

                    NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows:

ARTICLE I

PURCHASE AND SALE OF SHARES

                    1.01 Purchase and Sale of Shares. At the Closing, upon the terms and subject to the
conditions set forth in this Agreement, Seller shall sell, assign, transfer, and convey to Buyer,
and Buyer shall purchase and acquire from Seller, all of the Shares against payment at the Closing
pursuant to this Article I.

                    1.02 Purchase Price.

(a) The Purchase Price to be paid by Buyer for the Shares pursuant to this Agreement and the
rights granted pursuant to the UK Comfort Letter shall be, collectively, Twenty Million U.S.
Dollars ($20,000,000), subject to adjustment as provided in Section 1.02(b) (the
“Purchase Price”). The Purchase Price is payable in the manner provided in
Section 1.03.

(b) (i) Schedule 1.02(b)(i) sets forth a preliminary estimate of the Working Capital
Amount (the “Preliminary Working Capital Amount”). The cash due at Closing pursuant
to clause (A) of Section 1.03(b)(ii) will be increased or decreased in accordance
with this Section 1.02(b)(i) to the extent that the Preliminary Working Capital
Amount does not equal Four Million Five Hundred Thousand U.S. Dollars ($4,500,000), subject
to adjustment based upon the Revised Schedule (defined below) as provided in clauses (ii)
and (iii) below. To the extent that the Preliminary Working Capital Amount is less than
Four Million Five Hundred Thousand U.S. Dollars ($4,500,000), the cash due to Seller at
Closing pursuant to clause (A) of Section 1.03(b)(ii) shall be decreased by the
amount by which the Preliminary Working Capital Amount is less than Four Million Five
Hundred Thousand U.S. Dollars ($4,500,000). To the extent that the Preliminary Working
Capital Amount exceeds Four Million Five Hundred Thousand U.S. Dollars ($4,500,000), the
cash due to Seller at Closing pursuant to clause (A) of Section 1.03(b)(ii) shall be
increased by the amount of such excess.

 

 

(ii) Within 90 days following the Closing Date, Seller and Buyer shall jointly develop a
revised Schedule 1.02(b)(i), with respect to the actual Working Capital Amount as of
the Effective Time (the “Revised Schedule”). The Revised Schedule shall be prepared
in accordance with U.S. GAAP (except as otherwise provided in the definition of Working
Capital Assets), applied on a consistent basis in accordance with past practices of Seller
and consistent with the calculation of the Preliminary Working Capital Amount, in order to
reflect the actual Working Capital Amount as of the Closing Date. Each party shall
reasonably cooperate with the other and its representatives in connection with the
preparation of the Revised Schedule. In the preparation of the Revised Schedule, each party
shall review the work papers used in the preparation thereof and such other documents as a
party may reasonably request in connection with its review of the Revised Schedule.

(iii) In the event Buyer and Seller do not agree on the final Revised Schedule within 90
days following the Closing Date, Buyer and Seller will use reasonable efforts to resolve any
such disputes, but if a final resolution is not obtained within 10 days, any remaining
disputes shall be submitted within 5 days following the end of such 10 day period to a
national accounting firm in the following order: Ernst & Young, Price WaterhouseCoopers, or
other national accounting firm that does not have a material conflict selected by mutual
agreement of Buyer and Seller (the “Reviewing Accountant”), who will resolve any
such disputes within 30 days after such submission. The determination of the Reviewing
Accountant will be conclusive and binding upon the parties in the manner and to the same
effect as a binding arbitration award. Each party will bear one-half of the fees and
expenses of the Reviewing Accountant.

(iv) If the Working Capital Amount exceeds the Preliminary Working Capital Amount, then
Buyer shall pay to Seller within 10 Business Days following final determination of the
Working Capital Amount an amount equal to the excess. If the Working Capital Amount is less
than the Preliminary Working Capital Amount, then Seller shall pay to Buyer within 10
Business Days following final determination of the Working Capital Amount an amount equal to
the deficit. Any payments to Buyer required under this clause (iv) shall be made first by
disbursing the WCA Escrow Amount by Buyer and Seller giving written notice to the escrow
agent in accordance with the Escrow Agreement with wire transfer instructions provided by
the party to whom the payment is to be made. Any further payments to Buyer or any payments
to Seller required under this clause (iv) shall be made by wire transfer of same day funds
in accordance with written wire transfer instructions provided by the party to whom the
payment is to be made.

(v) (A) In addition to the Working Capital Amount adjustment, if any, described above,
Buyer shall also pay Seller an additional amount as an adjustment to the Purchase Price (the
“Contingent Payment”), subject to the attainment of certain Single Count Revenue targets, as
follows:

(1) If the Cluster Single Count Revenue is less than or equal to $70 million, then
no Contingent Payment is due.

(2) If the Cluster Single Count Revenue is greater than $70 million but less than or
equal to $77.5 million, then the Contingent Payment will be equal to the

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amount by which the Cluster Single Count Revenue exceeds $70 million, provided that
in no event shall the Contingent Payment payable pursuant to this clause (v)(A)(2)
exceed $5 million.

(3) If the Cluster Single Count Revenue is greater than $77.5 million, then the
Contingent Payment will be (i) $5 million plus (ii) 20% of the amount by which the
Cluster Single Count Revenue exceeds $77.5 million, provided that in no event shall
the total Contingent Payment payable pursuant to this clause (v)(A)(3) exceed $7
million.

(B) For purposes hereof, “Cluster Single Count Revenue” shall mean the aggregate Single
Count Revenue of the Companies (and the Mercer MC Affiliates) during the 18 months
immediately following the Effective Date that are attributable to the Employees. “Single
Count Revenue” of the Companies (and the Mercer MC Affiliates) shall be the aggregate gross
fee amounts billed by the Companies (and such Mercer MC Affiliates), less out of pocket
pass-through expenses and bad-debt write-offs consistent with past practice. For purposes
of the calculation of Cluster Single Count Revenue, Buyer shall allocate Single Count
Revenue to the Employees in a manner that is consistent with its prior practices (since
2003) and that does not discriminate against the Employees. The calculation of the
Contingent Payment, if any, shall be made in a manner consistent with the methodology and
examples described in Exhibit C.

(C) Buyer and Seller will endeavor to calculate the Contingent Payment no later than 45 days
after the 18-month anniversary of the Effective Date. In the event Buyer and Seller do not
agree on such calculation during such 45-day period, Buyer and Seller will use reasonable
efforts to resolve any such disputes, but if a final resolution is not obtained within 10
days, any remaining disputes shall be submitted within 5 days following the end of such 10
day period to the Reviewing Accountant, who will resolve any such disputes within 30 days
after such submission. The determination of the Reviewing Accountant will be conclusive and
binding upon the parties in the manner and to the same effect as a binding arbitration
award. Each party will bear one-half of the fees and expenses of the Reviewing Accountant.

(D) The Contingent Payment, if any, required under this Section 1.02(b)(v) shall be
made by wire transfer of same day funds, in accordance with written wire transfer
instructions provided by Seller to Buyer, no later than the 59th day after the 18-month
anniversary of the Effective Date (or, if later, 10 Business Days after the final
determination of the Contingent Payment pursuant to Section 1.02(b)(v)(C) above).

3

 

(c) The parties have agreed to allocate the Purchase Price as provided on Schedule
1.02(c). The Seller and the Buyer shall (i) be bound by such allocation for purposes of
determining any Taxes, (ii) prepare and file all Tax Returns to be filed with any taxing
authority in a manner consistent with such allocation; and (iii) take no position
inconsistent with such allocation in any Tax Return, any proceeding before any taxing
authority, or otherwise. In the event such allocation is disputed by any taxing authority,
the party receiving notice of such dispute shall promptly notify the other party of such
dispute, and the Seller and the Buyer shall cooperate in good faith in responding to such
challenge in order to preserve the effectiveness of such allocation.

          1.03 The Closing.

          (a) The closing of the transactions contemplated by this Agreement (the “Closing”)
shall take place at the offices of Buyer in New York, New York, at 10:00 A.M. on the third Business
Day following full satisfaction or due waiver of all of the closing conditions set forth in
Article II hereof (other than those to be satisfied at the Closing) or on such other date
as is mutually agreeable to Buyer and Seller. The date of the Closing is herein referred to as the
“Closing Date.” Unless otherwise mutually agreed by the parties in writing, the Closing
shall be effective for economic purposes hereunder as of the close of business (such time, the
“Effective Time”) on July 31, 2006 (such date, the “Effective Date”).

          (b) Subject to the terms and conditions set forth in this Agreement, the parties hereto shall
consummate the following transactions on the Closing Date:

          (i) Seller shall deliver to Buyer stock certificates (or their substitute for non-stock
entities), if any, representing the Shares duly endorsed for transfer or accompanied by duly
executed stock powers;

          (ii) Buyer shall deliver: (A) to Seller the amount of the Purchase Price less the WCA
Escrow Amount by wire transfer of immediately available funds to one or more accounts
designated by Seller to Buyer in writing no later than two Business Days prior to the
Closing and (B) to the escrow agent the WCA Escrow Amount by wire transfer of immediately
available funds to an account designated by the escrow agent pursuant to Section
1.04;

          (iii) Buyer and Seller shall make such other deliveries as are required by and in
accordance with Article II hereof.

          1.04 Escrow.

          (a) On the Closing Date, Seller, as collateral security for Damages of Buyer that are subject
to indemnification under Article VIII, shall execute and deliver an Escrow Agreement
substantially in the form attached hereto as Exhibit A (the “Escrow Agreement”) and
Seller shall deposit with the escrow agent an unconditional letter of credit from a nationally
recognized financial institution in an amount equal to Two Million U.S. Dollars ($2,000,000) (the
“Escrow Amount”). The Escrow Agreement shall provide for escrow of the Escrow Amount for a
period of three years (and such longer period as may be necessary to resolve any claims made prior
to the end of such period) with disbursement of the remaining balance of the Escrow Amount promptly
thereafter. After such period, Buyer will continue to have unsecured indemnification rights in
accordance with Article VIII.

4

 

          (b) In addition, as collateral security for final payment under Section 1.02(b)(iv)
after completion of the Revised Schedule, Buyer shall deposit with the escrow agent an amount equal
to Eight Hundred Thousand U.S. Dollars ($800,000) (the “WCA Escrow Amount”). The Escrow
Agreement shall provide for escrow of the WCA Escrow Amount for a period of 90 days (and such
longer period as may be necessary to resolve any claims under the provisions of this Agreement made
prior to the end of such period) with disbursement of the remaining balance of the WCA Escrow
Amount promptly thereafter.

          1.05 Pre-Closing and Simultaneous Transactions.

          (a) At the Closing, in addition to the purchase of the Shares, Seller shall, for the
consideration set forth in Section 1.02, deliver a letter to Buyer regarding the employees
who are listed on Schedule 1.05(a) (the “UK Employees”) substantially in the form
of Exhibit B attached hereto (the “UK Comfort Letter”). Buyer will, or will cause
one of its Affiliates to, offer employment, as of the Closing, to the UK Employees.

          (b) In addition, the “Cluster” and “Cluster Consulting” registered service marks or
applications thereof (which are listed on the Intellectual Property Schedule)
(collectively, the “Trademarks”) shall be transferred from DiamondCluster International IC
LLC to DiamondCluster International S.L. Sociedad Unipersonal prior to Closing by executing a
Service Mark Purchase Agreement in the form of Exhibit D attached hereto (the
“Trademark Assignment”).

          (c) The parties acknowledge that certain other individuals as listed on Schedule
1.05(c) are not employees of the Companies, although they are currently working for
DiamondCluster International FZ LLC in Dubai, UAE on a temporary basis, and will not become
employees of Buyer upon the Closing (“Transition Employees”). However, in the event Buyer
seeks to obtain transition services from the Transition Employees for a period of up to 120 days
after the Closing Date (the “Transition Period”) (as may be mutually extended by the
parties) and such Transition Employees agree, then this subsection shall govern the terms thereof.
Buyer and Parent shall analyze the revenue rate per month per person for the Transition Employees’
services and the direct (including salary, bonus allocation and benefits) and indirect costs and
expenses per month per person, including customary business expenses, such as client travel,
lodging, meals and incidentals as well as the Transition Employees’ housing, car, driver and other
out of pocket expatriate expenses, if any, and other indirect costs for the Transition Period.
Once the chief financial officers for Buyer and Parent, or their designees, reach agreement on such
revenue and cost per Transition Employee, the difference or net profit/loss will be shared equally
by Buyer and Seller. Buyer will be entitled to, and will assume, any obligations related to the
Transition Employees’ housing or cars to the extent they extend beyond the end of the Transition
Period and are no longer needed by such Transition Employees. Buyer and Parent will cooperate on
visa/business license issues for the Transition Employees, including potentially retaining such
people as employees or contractors of Buyer’s local entity on a temporary basis; and conversely
potentially retaining someone on Schedule 1.05(c) as an employee or contractor of Seller
(or an Affiliate) on a temporary basis. Seller or Parent shall pay for the travel and moving
expenses of the Transition Employees to return to their home office at the end of the Transition
Period.

5

 

ARTICLE II

CONDITIONS TO CLOSING

          2.01 Conditions to Buyer’s Obligations. The obligation of Buyer to consummate the
transactions contemplated by this Agreement is subject to the satisfaction of the following
conditions as of the Closing Date:

          (a) The representations and warranties set forth in Articles III and IV hereof shall
be true and correct in all material respects at and as of the Closing Date as though then made and
as though the Closing Date was substituted for the date of this Agreement throughout such
representations and warranties;

          (b) Seller shall have performed in all material respects all of the covenants and agreements
required to be performed by it under this Agreement at or prior to the Closing;

          (c) All consents that are required as a result of the transactions contemplated by this
Agreement in order to prevent a breach of or a default under or a termination of any agreement set
forth on the Third-Party Consents Schedule attached hereto shall have been obtained;

          (d) Clearance by the German Federal Cartel Office shall have been obtained;

          (e) No action or proceeding before any court or government body shall be pending wherein an
unfavorable judgment, decree or order would prevent the performance of this Agreement or the
consummation of any of the transactions contemplated hereby, declare unlawful the transactions
contemplated by this Agreement or cause such transactions to be rescinded;

          (f) Seller shall have delivered to Buyer each of the following:

          (i) a certificate of Seller, dated the Closing Date, stating that the preconditions
specified in subsections (a) through (c) hereof as they relate to the Companies or Seller,
as the case may be, have been satisfied;

          (ii) copies of the third party consents required by subsection (c) above;

          (iii) the stock certificates (or equivalents), if any, representing the Shares from
Seller, in each case duly endorsed for transfer or accompanied by duly executed stock
powers, or facsimile copies thereof where originals cannot be present at the place of
Closing;

          (iv) all minute books, stock books, ledgers and registers, corporate seals and other
corporate records relating to the organization, ownership and maintenance of the Companies;

          (v) resignations effective as of the Closing Date from all officers, directors,
managing directors and members of any supervisory or advisory board of the Companies, except
for the managing director of DiamondCluster International Ltda;

6

 

          (vi) true and correct copies of the Companies’ articles of association (or other
formation documents as applicable) and by-laws (or other governing documents as applicable);

          (vii) copies of resolutions duly adopted by Seller’s board of directors and Parent’s
board of directors authorizing the execution, delivery and performance of this Agreement by
Seller and, in the case of Parent’s board of directors, authorizing the execution, delivery
and performance of the Guaranty;

          (viii) executed copies of the Escrow Agreement, the UK Comfort Letter, the Trademark
Assignment, the Guaranty, the German Share Transfer Agreement, the Spanish Share Transfer
Deed and the French Share Transfer Agreement;

          (ix) the mutually acceptable employment agreements, special payment agreements,
non-solicitation agreements and confidentiality agreements executed by the Partners on or
prior to the date hereof shall not have been revoked or rescinded;

          (x) documentation evidencing the termination, effective as of or prior to the Closing,
of those intercompany agreements listed on Schedule 2.01(f)(x);

          (xi) the documentation referenced in Section 6.08;

          (g) Seller shall have satisfied all notification and/or consent requirements, if any, for the
Companies related to works councils, economic committees or similar employee representative bodies;

          (h) Buyer shall have satisfied all notification and/or consent requirements, if any, related
to its works council, economic committees or similar employee representative bodies; and

          (i) There shall not have been any developments at, or actions taken by, the Companies between
the effective date of this Agreement and the Closing which have resulted in a material adverse
effect on the assets, business, results of operations or condition (financial or otherwise) of the
Companies taken as a whole, but excluding any change or event in the industry in which the
Companies compete that does not disproportionately affect the Companies, and excluding political
and economic matters of general application and Seller shall have delivered to Buyer a
duly-executed officer’s certificate dated the Closing Date to such effect.

          2.02 Conditions to Seller’s Obligations. The obligations of Seller and Parent to
consummate the transactions contemplated by this Agreement are subject to the satisfaction of the
following conditions as of the Closing Date:

          (a) The representations and warranties set forth in Article V hereof shall be true and
correct in all material respects at and as of the Closing as though then made and as though the
Closing Date was substituted for the date of this Agreement throughout such representations and
warranties;

7

 

          (b) Buyer shall have performed in all material respects all the covenants and agreements
required to be performed by it under this Agreement at or prior to the Closing;

          (c) No action or proceeding before any court or government body shall be pending wherein an
unfavorable judgment, decree or order would prevent the performance of this Agreement or the
consummation of any of the transactions contemplated hereby, declare unlawful the transactions
contemplated by this Agreement or cause such transactions to be rescinded;

          (d) Clearance by the German Federal Cartel Office shall have been obtained and Buyer shall
have delivered written evidence of such clearance to Seller;

          (e) Buyer shall have delivered to Seller certified copies of the resolutions duly adopted by
Buyer’s board of directors authorizing the execution, delivery and performance of this Agreement;

          (f) Buyer shall have delivered to Seller a certificate, dated the Closing Date, stating that
the preconditions specified in subsections (a) and (b) hereof have been satisfied; and

          (g) Buyer shall have delivered to Seller executed copies of the Escrow Agreement, the German
Share Transfer Agreement, the Spanish Share Transfer Deed and the French Share Transfer Agreement.

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF SELLER

          Seller represents to Buyer as follows:

          3.01 Execution, Delivery; Valid and Binding Agreements. This Agreement has been, and
at the Closing each of the Seller Ancillary Agreements will be, duly executed and delivered by
Seller, and assuming that this Agreement is the valid and binding agreement of Buyer, this
Agreement constitutes, and upon their execution at Closing each Seller Ancillary Agreement will
constitute (assuming that each such agreement is the valid and binding agreement of the
counterparty), the valid and binding obligation of Seller, enforceable in accordance with its
terms.

          3.02 Organization; Authority. Seller is a company duly formed, validly existing and
in good standing under the laws of the Netherlands and has all requisite power and authority and
full legal capacity to execute and deliver this Agreement and the Seller Ancillary Agreements and
to perform its obligations hereunder and thereunder (including, without limitation, all right,
capacity and authority to sell, transfer and convey the Shares as provided by this Agreement,
subject to applicable securities law restrictions).

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          3.03 Ownership of Capital Stock. Seller is the direct or indirect legal and
beneficial owner of the Shares as set forth on Annex 1 hereto, which Shares constitute all
of the issued and outstanding equity interests of each Company’s capital stock or its equivalent.
On the Closing Date, Seller shall transfer to Buyer good title to such Shares, free and clear of
all claims, pledges, security interests, liens, charges, encumbrances, options, proxies, voting
trusts or agreements and other restrictions and limitations of any kind, other than applicable
federal and state securities law restrictions.

          3.04 Brokerage. Except for the fees and expenses of any investment banker hired by
Parent or Seller (which shall be paid by Seller), there are no claims for brokerage commissions,
finders’ fees or similar compensation in connection with the transactions contemplated by this
Agreement based on any arrangement or agreement made by or on behalf of Seller or Parent.

          3.05 No Violation. Seller is not subject to or obligated under its certificate of
incorporation (or similar formation document), its bylaws (or similar governance document), any
applicable law, or rule or regulation of any governmental authority, or any material agreement or
instrument, or any license, franchise or permit, or subject to any order, writ, injunction or
decree, which would be breached or violated in any material respect by Seller’s execution, delivery
or performance of this Agreement or any Seller Ancillary Agreement.

          3.06 Litigation. There are no actions, suits or proceedings pending or, to Seller’s
knowledge, overtly threatened against or affecting Seller or Parent, at law or in equity, or before
or by any federal, state, municipal or other governmental department, commission, board, bureau,
agency or instrumentality, domestic or foreign, which if determined adversely to Seller or Parent
would prevent Seller or Parent from performing its obligations under this Agreement or any Seller
Ancillary Agreement.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF SELLER FOR EACH COMPANY

          Seller represents and warrants to Buyer that:

          4.01 Organization and Corporate Power. Each Company is a company duly incorporated
with limited liability under the laws of their respective country of incorporation, and each has
all requisite corporate power and authority and all authorizations, licenses and permits necessary
to own and operate its properties and to carry on its businesses as now conducted, except where
the failure to hold such authorizations, licenses and permits would not have a Material Adverse
Effect.

          4.02 Subsidiaries. Except as set forth on the attached Subsidiaries Schedule
(also see Annex 1), the Companies do not own or hold, nor own or hold any rights to
acquire, any stock, partnership interest, membership interest or joint venture interest or other
equity ownership interest in any other corporation, organization or entity.

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          4.03 Authorization; No Breach. Except as set forth on the attached Authorization
Schedule, the execution, delivery and performance of this Agreement and the Seller Ancillary
Agreements by Seller and the consummation of the transactions contemplated hereby and thereby do
not (a) conflict with or result in (with the giving of notice or lapse of time or both) any breach
of, default under, or a violation of, or the creation of any lien, security interest, charge, or
encumbrance upon, any material assets of the Companies; (b) require any authorization, consent,
approval, exemption or other action by or notice to any court or other governmental body; (c)
conflict with or result in (with the giving of notice or lapse of time or both) any breach of,
default under, or a violation of the provisions of any Companies’ articles of association (or
similar formation documents) or bylaws (or similar governing documents) or any material indenture,
mortgage, lease, loan agreement or other agreement or instrument to which any Company is bound or
(d) result in a violation of any law, statute, rule or regulation or order, judgment or decree to
which any Company is subject.

          4.04 Capital Stock. The authorized number of shares of capital stock or other equity
of each Company consists of, and the issued and outstanding amounts, are as set forth on Annex
1. The issued and outstanding equity interests are owned legally and beneficially by Seller as
set forth on Annex 1. All of the Shares have been duly authorized and are validly issued,
fully paid (except as otherwise reflected on Annex 1) and nonassessable. Each Company does
not have any other capital stock, equity securities or securities containing any equity features
authorized, issued or outstanding, and there are no agreements, options, warrants or other rights
or arrangements existing or outstanding which provide for the sale or issuance of any of the
foregoing by such Company. There are no rights, subscriptions, warrants, options, conversion
rights or agreements of any kind outstanding to purchase or otherwise acquire any shares of capital
stock or other equity securities of the Companies of any kind. There are no agreements or other
obligations (contingent or otherwise) which require the Companies to repurchase, redeem or
otherwise acquire any shares of the Companies’ capital stock or other equity securities.

          4.05 Financial Statements. Seller has furnished Buyer for each Company with copies of
(a) the audited or unaudited balance sheet as of March 31, 2006 and the related statement of income
for the twelve-month period then ended (such balance sheet referred to herein as the “Latest
Balance Sheet”) and (b) the financial statements for such Company as of March 31, 2004 and
March 31, 2005 and for the twelve-month periods then ended. Except as set forth on the attached
Accounting Schedule, such financial statements have been based upon the information
contained in the Companies’ books and records, have been prepared in accordance with applicable
statutory accounting principles, consistently applied throughout the periods indicated, and present
fairly in all material respects the financial condition and results of operations of the Companies
as of the times and for the periods referred to therein, subject to (i) the absence of footnote
disclosures and other presentation items and (ii) changes resulting from normal year-end
adjustments.

          4.06 Absence of Certain Developments. Since the date of the Latest Balance Sheet, the
Companies have been operated in the ordinary course of business consistent with past practices and
there has not been any material adverse change in the financial condition or results of operations
of any Company. Except as set forth on the attached Developments Schedule and

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except as expressly contemplated by this Agreement, since the date of the Latest Balance
Sheet, each Company has not:

          (a) borrowed any amount or incurred or become subject to any material liabilities, except
liabilities incurred in the ordinary course of business consistent with past practice, liabilities
under contracts entered into in the ordinary course of business consistent with past practice and
borrowings from banks (or similar financial institutions) necessary to meet ordinary course working
capital requirements;

          (b) mortgaged, pledged or subjected to any material lien, charge or other encumbrance, any
material portion of its assets, except liens for current property taxes not yet due and payable;

          (c) sold, assigned or transferred any material portion of its tangible assets, except in the
ordinary course of business consistent with past practice;

          (d) sold, assigned or transferred any patents, trademarks, trade names, copyrights, trade
secrets or other intangible assets, except in the ordinary course of business consistent with past
practice;

          (e) suffered any extraordinary losses or waived any rights of material value;

          (f) issued, sold or transferred any of its capital stock or other equity securities,
securities convertible into its capital stock or other equity securities or warrants, options or
other rights to acquire its capital stock or other equity securities, or any bonds or debt
securities;

          (g) made any material capital expenditures or commitments therefor; or

          (h) entered into any other material transaction, except in the ordinary course of business.

          4.07 Title to Properties.

          (a) The real property demised by the leases described on the attached Leased Real Property
Schedule constitutes all of the real property leased by the Companies.

          (b) The leases described on the Leased Real Property Schedule are in full force and
effect, and the Company holds a valid and existing leasehold interest under each of the leases for
the term set forth on the Leased Real Property Schedule. Seller has delivered to Buyer
complete and accurate copies of each of the leases described on the Leased Real Property
Schedule, and none of the leases have been modified in any material respect, except to the
extent that such modifications are disclosed by the copies delivered to Buyer. Each Company is not
in default in any material respect under any of such leases. Such leases respectively represent
the entire agreement between the landlord or lessor and the applicable Company

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thereunder with respect to the leasing and occupancy of the respective premises demised
thereunder. There are no other agreements or representations of any kind with respect to any of
such leases between the respective landlord or lessor and the applicable Company thereunder or any
of its Affiliates. The rent under each of such leases has been paid through July 31, 2006. Except
as set forth on the Leased Real Property Schedule: (i) there are no unpaid invoices or
demands for additional rent or other charges from the landlord or lessor under any of the Leases;
(ii) no Company has received any written communication from the landlord or lessor under any of the
Leases claiming that it is in any respect not in full compliance with its obligations under the
Leases; and (iii) each Company is in sole possession of its premises demised under the Leases to
which such Company is a party and has not assigned, sublet, mortgaged or otherwise conveyed all or
any portion of its interest in any of such Leases or the premises demised under any of such Leases.

          (c) The Companies do not own any real property.

          (d) Each Company owns good and marketable title to all of the personal property shown on the
Latest Balance Sheet and that included in the calculation of the Working Capital Amount, free and
clear of all liens, security interests and other encumbrances, except for liens relating to current
taxes not yet due and payable and liens and encumbrances set forth on the attached Lien
Schedule.

          (e) The assets owned by the Companies comprise all of the material assets of the Companies
which, taken as a whole, constitute the assets currently used by the Companies in the conduct of
their consulting services business for the telecommunications and utilities industries, except any
software licenses used by the Companies where the licensee is an Affiliate of Parent that is not a
Company, which licenses are listed on Schedule 4.07(e) or any insurance policies maintained
by Parent that benefit a Company which are listed on the Insurance Schedule. There are no
current UK telecommunications client contracts, works in progress or proposals.

          4.08 Tax Matters. Except as set forth on the attached Tax Matters Schedule or
the Litigation Schedule related to Taxes:

          (a) Each Company has timely filed all material federal, state, local and foreign income,
exercise, property and other Tax Returns which are required to be filed by it and all such Tax
Returns are true, complete and correct in all material respects. All Taxes required to be paid by
each Company have been fully paid or properly accrued. The provision for Taxes on Schedule
1.02(b)(i) is sufficient for all accrued and unpaid Taxes as of the date hereof and accurately
sets forth the deferred tax assets of the Companies. Since the date of the Latest Balance Sheet,
the Companies have not incurred any liability for Taxes other than in the ordinary course of
business consistent with past practice.

          (b) Except for the intercompany agreements listed on the Affiliate Transactions
Schedule, none of the Companies (i) are a party to, bound by or has any obligation under, any
Tax sharing agreement, Tax indemnification agreement or similar contract or arrangement,

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whether written or unwritten or (ii) has any potential liability or obligation to any person
as a result of, or pursuant to any such Tax agreement.

          (c) No jurisdiction where any Company does not file a Tax Return has made a claim that the
Company is required to file a Tax Return for such jurisdiction. No Tax audit or other
administrative proceedings have formally commenced or are presently pending with regard to any
Taxes or Tax Returns of or including any of the Companies, and no notification has been received
that such an audit or other proceeding is pending or threatened with respect to any Taxes due from
or with respect to any of the Companies or any Tax Return filed by or with respect to any of the
Companies. No deficiency for any Tax has been assessed with respect to any of the Companies which
have not been paid in full.

          (d) Each of the Companies has complied in all material respects with all applicable laws
relating to the payment and withholding of Taxes and has, within the time and manner prescribed by
law withheld and paid over to the proper governmental authorities all required amounts.

          (e) Except for the Brazilian withholding tax contemplated by Section 6.08, no amounts
are required to be withheld in respect of the transactions contemplated pursuant to this Agreement.

          (f) None of the Companies has been a United States real property holding corporation (as
defined in Section 897(c)(2) of the Code) during the applicable period specified in Section 897 of
the Code.

          4.09 Contracts and Commitments.

          (a) Except as set forth on the attached Contracts Schedule, the Companies are not a
party to any: (i) collective bargaining agreement or contract with any labor union; (ii) bonus,
pension, profit sharing, retirement or other form of deferred compensation plan, other than as
described in Section 4.14 or the schedules relating thereto; (iii) stock purchase, stock
option or similar plan, other than as described in Section 4.14 or the schedules relating
thereto; (iv) contract for the employment of any officer or “partner”; (v) agreement or indenture
relating to the borrowing of money or to mortgaging, pledging or otherwise placing a lien on any
material portion of the Company’s assets; (vi) guaranty of any obligation for borrowed money or
other material guaranty; (vii) lease or agreement under which it is lessee of, or holds or operates
any personal property owned by any other party, for which the annual rental exceeds $150,000;
(viii) lease or agreement under which it is lessor of or permits any third party to hold or operate
any property, real or personal, for which the annual rental exceeds $150,000 other than as
disclosed on the Leased Real Property Schedule; (ix) contract or group of related contracts
with the same party for the purchase of products or services, under which the undelivered balance
of such products and services has a selling price in excess of $150,000; (x) contract or group of
related contracts with the same party for the sale of products or services under which the
undelivered balance of such products or services has a sales price in excess of $500,000; (xi)
contract which prohibits the Company from freely engaging in business anywhere in the world, other
than standard employee non-solicitation or conflict of interest clauses contained therein, or
requires any Company to conduct its consulting services business

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with any client on an exclusive basis or otherwise limits such business with a non-compete
clause; (xii) partnership or joint venture agreements or (xiii) other material agreements not in
the ordinary course of business where the subject matter exceeds $150,000. The Contracts
Schedule also includes a list (with brief description) of all powers of attorney granted by any
Company in effect on the date hereof.

          (b) Buyer either has been supplied with, or has been given access to, a true and correct copy
of all written contracts which are referred to on the Contracts Schedule, together with all
material amendments, waivers or other changes thereto.

          (c) The Companies are not in material default under any contract listed on the Contracts
Schedule. Each contract listed on the Contracts Schedule is a valid and binding
agreement enforceable by and against the Company which is a party thereto in accordance with its
terms assuming each such contract is the valid and binding agreement of the counterparty(ies),
except to the extent enforcement thereof may be limited or affected by any applicable bankruptcy,
insolvency, receivership, reorganization, moratorium or similar laws affecting creditors’ rights
generally or by general principles of equity or public policy.

          4.10 Intellectual Property. All of the patents, registered trademarks, registered
service marks, registered copyrights, application for any of the foregoing and material
unregistered trademarks, service marks, copyrights, trade names and corporate names owned by the
Companies (or to be owned prior to Closing) (collectively, “Intellectual Property”) are set
forth on the attached Intellectual Property Schedule. Except as set forth on the
Intellectual Property Schedule: (i) the Companies own and possess all right, title and
interest in and to, or possess the valid right to use, the Intellectual Property; (ii) the
Companies have not received any written notices of infringement or misappropriation from any third
party with respect to the Intellectual Property; and (iii) to Seller’s knowledge, no Person is
currently infringing on the Intellectual Property and the Companies are not currently infringing on
the intellectual property of any other Person.

          4.11 Litigation. Except as set forth on the attached Litigation Schedule,
there are no actions, suits or proceedings pending or, to Seller’s knowledge, overtly threatened
against any Company, at law or in equity, or before or by any federal, state, municipal or other
governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign,
and the Companies are not subject to any outstanding judgment, order or decree of any court or
governmental body.

          4.12 Brokerage. There are no claims for brokerage commissions, finders’ fees or
similar compensation in connection with the transactions contemplated by this Agreement based on
any arrangement or agreement made by or on behalf of the Companies or Seller, except for the fees
and expenses of any investment banker hired by Parent or Seller (which shall be paid by Seller).

          4.13 Books and Records. The books, ledgers and official and other financial records
of the Companies, taken as a whole, have been fully, properly and accurately kept and

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are complete in all material respects, and will be in the possession of the Companies or
delivered to Buyer at the Closing.

          4.14 Employees; Employee Benefit Plans.

          (a) Set forth on the Employee Schedule is an accurate and complete list, as of June
30, 2006, of the names of all employees of the Companies and the UK Employees (collectively, the
“Employees”), together with the following information with respect to each such Employee: (i)
employer and office location, (ii) job title, and (iii) date of hire and, if different, most recent
hire date. Except as indicated on the Employee Schedule, none of the Employees are
currently on lay-off, disability or leave of absence, whether paid or unpaid, and none of the
Employees are seasonal, temporary or part-time employees.

          (b) The Employee Benefits Schedule sets forth an accurate and complete list of each
material pension, profit-sharing, bonus, incentive, stock option or purchase, insurance, severance,
fringe benefit, deferred compensation, vacation, health, sickness, disability or other employee or
retiree benefit plan, policy or arrangement of any Company or its Affiliates in which any current
or former employee of any Company participates or participated since January 1, 2006 (collectively,
the “Plans”). With respect to each Plan, the Employee Benefits Schedule identifies the
company(ies) which sponsors, maintains, contributes to or has an obligation to contribute to (or
has ever maintained, contributed to or had an obligation to contribute to) such Plan. Except as
set forth in the Employee Benefits Schedule, (i) each Company is in compliance in all
material respects with all applicable provisions of law with respect to each Plan, (ii) all
required contributions have been made or properly accrued, and (iii) there are no material pending,
or to Seller’s or any Company’s knowledge, threatened claims by or on behalf of any of the Plans or
by any governmental, regulatory or other third party with respect to such Plans other than routine
claims for benefits. Except as set forth on the Employee Benefits Schedule, no Company has
any obligation to provide or fund any benefits with respect to any employee or former employee of
such Company or its Affiliates other than under the regular terms and conditions of the Plans.

          (c) Except as set forth on the Works Council Schedule, there is no works council or similar
employee representative body applicable to any Employee in any jurisdiction.

          4.15 Insurance. The attached Insurance Schedule lists each material insurance
policy maintained by the Companies together with a brief description for each policy of the type
and amount of coverage, the amount of premium, the expiration date of the policy and the insurance
carrier. All of such insurance policies are in full force and effect, and the Companies are not in
material default with respect to their obligations under any of such insurance policies. Other
insurance policies covering the Companies are maintained by Seller or Parent (as listed and
identified on the Insurance Schedule), and such policies are not owned by nor an asset of
the Companies.

          4.16 Compliance with Laws. Each Company is in compliance with all applicable laws and
regulations of foreign, federal, state and local governments and all agencies thereof, except where
the failure to comply would not have a Material Adverse Effect.

15

 

          4.17 Undisclosed Liabilities. The Companies do not have any material obligation or
liability of any nature whatsoever (direct or indirect, matured or unmatured, absolute, accrued,
contingent or otherwise), whether or not required by applicable statutory accounting principles to
be provided or reserved against on a balance sheet (collectively, “Liabilities”) except
for: (a) Liabilities provided for or reserved against in the Latest Balance Sheet or taken into
account in the calculation of the Working Capital Amount; (b) Liabilities which have been incurred
by the Companies subsequent to the date of the Latest Balance Sheet in the ordinary course of
business consistent with past practice; and (c) Liabilities under the executory portion of any
written agreement, contract or commitment of any kind by which the Companies are bound and which
was entered into in the ordinary course of business consistent with past practice.

          4.18 Clients. The Clients Schedule sets forth a list of the names of the
twenty highest revenue producing clients of the Companies for fiscal years 2005 and 2006,
cumulatively. Except as set forth in the Clients Schedule, no such client has given
notice to Seller or any Company that it will, as a result of the transactions contemplated by this
Agreement or otherwise, cancel or otherwise terminate or materially reduce its relationship with
any Company. Seller has furnished Buyer with the aggregate backlog report of the Companies as of
July 4, 2006, all of which, to Seller’s knowledge, represent bona fide requests for services
received by the Companies in the ordinary course of business.

          4.19 Environmental Laws and Regulations. (a) No Company has and, to Seller’s
knowledge, no other Person has, generated, used, treated, disposed of, released or stored Hazardous
Materials on, or transported Hazardous Materials in any material quantities to or from, any
property that is the subject of the Leases or that was previously owned or occupied by any Company,
(b) each Company is in compliance in all material respects with applicable Environmental Laws and
the requirements of any permits issued under such Environmental Laws with respect to any such
property and (c) to Seller’s knowledge, there are no pending or threatened claims, suits, demands,
investigations, proceedings or other actions relating to any Environmental Law with respect to any
such property.

          4.20 Affiliate Transactions. The Affiliate Transactions Schedule sets forth a
list of all material contracts or arrangements between any Company, on the one hand, and Seller,
Parent, any Affiliate of Parent, or any officer, director, or employee of any of them, on the other
hand except for any employment agreements or as otherwise disclosed to Buyer in a Schedule hereto.

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF BUYER

          Buyer represents and warrants to Seller that:

          5.01 Organization and Corporate Power. Buyer is a corporation duly organized, validly
existing and in good standing under the laws of Delaware, with full corporate power and authority
to enter into this Agreement and each of the Buyer Ancillary Agreements and perform its obligations
hereunder and thereunder.

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          5.02 Authorization. The execution, delivery and performance of this Agreement and
each Buyer Ancillary Agreement by Buyer and the consummation of the transactions contemplated
hereby and thereby have been duly and validly authorized by all requisite corporate action, and no
other corporate proceedings on its part are necessary to authorize the execution, delivery or
performance of this Agreement and the Buyer Ancillary Agreements. Assuming that this Agreement is
a valid and binding obligation of Seller, this Agreement constitutes, and upon their execution at
Closing each Buyer Ancillary Agreement will constitute, a valid and binding obligation of Buyer,
enforceable in accordance with its terms.

          5.03 No Violation. Buyer is not subject to or obligated under its certificate of
incorporation, its bylaws, any applicable law, or rule or regulation of any governmental authority,
or any material agreement or instrument, or any license, franchise or permit, or subject to any
order, writ, injunction or decree, which would be breached or violated in any material respect by
Buyer’s execution, delivery or performance of this Agreement or any Buyer Ancillary Agreement.

          5.04 Governmental Authorities; Consents. Except for the applicable requirements of
the German Federal Cartel Office, Buyer is not required to submit any notice, report or other
filing with any governmental authority in connection with the execution, delivery or performance by
it of this Agreement of the consummation of the transactions contemplated hereby. No consent,
approval or authorization of any governmental or regulatory authority or any other party or Person
is required to be obtained by Buyer in connection with its execution, delivery and performance of
this Agreement or the consummation of the transactions contemplated hereby.

          5.05 Litigation. There are no actions, suits or proceedings pending or, to Buyer’s
knowledge, overtly threatened against or affecting Buyer, at law or in equity, or before or by any
federal, state, municipal or other governmental department, commission, board, bureau, agency or
instrumentality, domestic or foreign, which if determined adversely to Buyer would prevent Buyer
from performing its obligations under this Agreement or any Buyer Ancillary Agreement.

          5.06 Brokerage. There are no claims for brokerage commissions, finders’ fees or
similar compensation in connection with the transactions contemplated by this Agreement based on
any arrangement or agreement made by or on behalf of Buyer.

          5.07 Investment Representation. Buyer is purchasing the Shares for its own account
with the present intention of operating the Companies and not with a view to or for sale of the
Shares in connection with any public distribution of such securities in violation of any applicable
securities laws.

          5.08 Financing. Buyer has and shall have at the Closing sufficient cash and available
credit facilities to pay the full consideration payable to Seller hereunder, to make all

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other necessary payments by it in connection with this Agreement and to pay all of its related
fees and expenses.

ARTICLE VI

PRE-CLOSING COVENANTS OF SELLER

          6.01 Conduct of the Business.

          (a) From the date hereof until the Closing, Seller shall (i) cause each Company to carry on
its business according to its ordinary and usual course of business and substantially in the same
manner as heretofore conducted; (ii) use commercially reasonable efforts to maintain satisfactory
relationships with, and preserve the goodwill of, suppliers, vendors, lessors, customers and others
having relationships with the Companies; (iii) use commercially reasonable efforts to keep
available to the Companies the services of the employees of the Companies and the UK Employees;
(iv) maintain all material assets of the Companies in good repair, order and condition, ordinary
wear and tear excepted; (v) maintain the books and records of the Companies in the usual, regular
and ordinary manner on a basis consistent with past practice; and (vi) settle intercompany
obligations so that the aggregate net amount owed by or to the Companies shall not exceed $500,000
at Closing (unless a cash transfer is required by the Companies for working capital in which case
such amount shall not exceed $1,500,000); provided, however that each Company may
use all available cash other than working capital to declare and pay dividends and make
distributions with regard to its capital and stock prior to the Closing Date, subject to the target
Preliminary Working Capital Amount remaining equal to Four Million Five Hundred Thousand U.S.
Dollars ($4,500,000).

          (b) From the date hereof until the Closing, except as otherwise provided for by this Agreement
(including the settlement of intercompany accounts as described in clause (vi) of Section
6.01(a)) or consented to in writing by Buyer, Seller shall cause each Company to not (i) issue,
sell or deliver any shares of its capital stock or issue or sell any securities convertible into,
or options with respect to, or warrants to purchase or rights to subscribe for, any shares of its
capital stock; (ii) effect any recapitalization, reclassification, stock dividend, stock split or
like change in its capitalization; (iii) amend its articles of association or bylaws except as
necessary to change the German registered office to Munich; (iv) make any redemption or purchase of
any shares of its capital stock; (v) materially increase or change the compensation payable to, or
the employment benefits of, any employee except in the ordinary course of business consistent with
past practices; (vi) incur or commit to incur any indebtedness or other obligation in excess of
$250,000 except in the ordinary course of business consistent with past practices; (vii) make,
change or revoke any Tax election with respect to any Company or make any change to (or make a
request to any taxing authority to change) any of its tax accounting principles, methods or
practices; (viii) amend any Company Tax Return, settle or compromise any Tax claim or liability or
enter into a Tax settlement or compromise (other than with respect to the Spanish Tax Claim in
accordance with the terms of this Agreement); (ix) consent to any extension or waiver of the
statute of limitations period applicable to any Tax or Tax Return of or with respect to any
Company; (x) pledge or create any encumbrance on any of the Shares; (xi) transfer, sell, encumber
or convey any material assets of the Companies other than in the ordinary course of business
consistent with past practice; or (xii) take any action or omit to take any action which would
cause a breach of any representation or warranty of Seller hereunder that is not cured prior to the
Closing.

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          6.02 Access to Books and Records. From the date hereof until the Closing Date, Seller
shall cause each Company to provide Buyer and its authorized representatives (“Buyer’s
Representatives”) with full access (to the extent permitted by applicable anti-trust and
privacy regulations) at all reasonable times and upon reasonable notice to the offices, properties,
personnel, books and records of the Company in order for Buyer to have the opportunity to make such
investigation as it shall reasonably desire to make of the affairs of the Company. Buyer
acknowledges that it remains bound by the Nondisclosure Letter Agreement, dated January 11, 2006,
with the Seller (the “Confidentiality Agreement”).

          6.03 Notification. From the date hereof until the Closing, Seller shall cause each
Company to disclose to Buyer in writing any material uncured variances from the representations and
warranties contained in Article IV promptly upon discovery thereof.

          6.04 Regulatory Filings. Seller shall, and shall cause each Company to, cooperate
with Buyer in Buyer’s efforts to make or cause to be made all filings and submissions required by
or under the German Federal Cartel Office and make or cause to be made all filings and submissions
required by or under any other laws or regulations applicable to Seller or the Companies for the
consummation of the transactions contemplated herein. Seller shall, and shall cause each Company
to, coordinate and cooperate with Buyer in exchanging such information and assistance as Buyer may
reasonably request in connection with all of the foregoing.

          6.05 Conditions. Seller shall, and shall cause each Company to, use reasonable
efforts to cause the conditions set forth in Section 2.01 to be satisfied and to consummate
the transactions contemplated herein as soon as reasonably possible after the satisfaction of the
conditions set forth in Article II (other than those to be satisfied at the Closing);
provided that neither the Companies nor Seller shall be required to expend any material funds
(other than reasonable legal expenses) to obtain any third-party or governmental consents required
under Section 2.01(c) or (d).

          6.06 Bonus Accrual. Seller shall cause each Company to accrue an amount for a
potential cash bonus to its employees for the period beginning on April 1, 2006 and ending on the
Effective Date in respect of the Partners pursuant to the methodology described in the sample
letter attached hereto as Schedule 6.06. The aggregate amount of such accrual is, as of the
date hereof, estimated to be 1.2 million Euro for the Companies taken as a whole. Such amount
shall be adjusted as necessary to reflect any related adjustments in the final Working Capital
Amount. This bonus accrual shall operate as an offset to any amounts owed by Seller to Buyer under
Section 10.11.

          6.07 Employee Equity Awards. Seller agrees to take (and to cause Parent to take) the
actions described in the sample letters to Employees that are attached hereto as Schedules 6.06
and 6.07 with regard to any Equity Awards held by an Employee as of the Closing.

          6.08 Brazil Withholding Tax. No later than five (5) Business Days prior to the
Closing, Seller will deliver to Buyer documentation that sets forth the correct amount, if any, of

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Brazilian withholding tax required to be withheld and paid over to the appropriate
governmental authority with respect to the sale of Shares of DiamondCluster International Ltda.

ARTICLE VII

COVENANTS OF BUYER

          7.01 Access to Books and Records. From and after the Closing, Buyer shall, and shall
cause the Companies, to provide Seller and its agents with reasonable access (for the purpose of
examining and copying), during normal business hours, to the books and records of the Companies
with respect to periods or occurrences on or prior to the Closing Date in connection with any
matter whether or not relating to or arising out of this Agreement or the transactions contemplated
hereby. Unless otherwise consented to in writing by Seller, the Companies shall not, for a period
of seven years following the Closing Date, destroy, alter or otherwise dispose of any of the books
and records of the Companies for the period on or prior to the Closing Date without first offering
to surrender to Seller such books and records or any portion thereof which Buyer or the Companies
may intend to destroy, alter or dispose of.

          7.02 Notification. Prior to the Closing, upon discovery Buyer shall promptly inform
Seller in writing of any material variances from Buyer’s representations and warranties contained
in Article V. Buyer shall promptly notify Seller if the senior management personnel of
Buyer obtain actual knowledge that any representation and warranty of Seller in this Agreement, as
qualified by the Schedules hereto, is not true and correct in all material respects. For purposes
of this Section 7.02 and Section 8.03(d)(ii), senior management personnel of Buyer
shall have “actual knowledge” that a representation and warranty of Seller in this Agreement, as
qualified by the Schedules hereto, is not true and correct in all material respects, only if such
personnel has had written correspondence with other such personnel regarding such representation
and warranty and its material inaccuracy. For the avoidance of doubt, Buyer shall have no
obligation to notify Seller if the senior management of Buyer obtains actual knowledge of any
Pre-Closing Liability or Spanish Tax Claims.

          7.03 Regulatory Filings. Buyer shall make or cause to be made all filings and
submissions required by or under the German Federal Cartel Office and any other laws or regulations
applicable to Buyer as may be required of Buyer for the consummation of the transactions
contemplated herein, and Buyer shall be responsible for all filing fees required by or under the
German Federal Cartel Office. Buyer shall coordinate and cooperate with the Companies in
exchanging such information and assistance as the Companies may reasonably request in connection
with all of the foregoing.

          7.04 Conditions. Buyer shall use all reasonable efforts to cause the conditions set
forth in Section 2.02 to be satisfied and to consummate the transactions contemplated
herein as soon as reasonably possible after the satisfaction of the conditions set forth in
Article II (other than those to be satisfied at the Closing), provided that Buyer shall not
be obligated to accept or fulfill any unreasonable charges or conditions imposed by any applicable
antitrust or competition authorities (e.g., a sale of an existing business).

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          7.05 Contact with Customers and Suppliers. Prior to the Closing, Buyer and Buyer’s
Representative shall contact and communicate with the employees, customers and suppliers of the
Companies in connection with the transactions contemplated hereby only with the prior written
consent of Seller or Parent and subject to applicable anti-trust regulations.

          7.06 Maintain Employee Benefits. Immediately after the Closing, Buyer shall cause the
Companies to provide the employee benefits to the employees of the Companies which were provided by
the Companies immediately preceding the Closing, excluding any Equity Awards or any benefits
provided or offered by Affiliates of the Companies. Any costs, expenses, liabilities or
obligations of the Companies and/or the Buyer related to or arising from the employment actions of
the Buyer and/or the Companies after the Closing shall be the sole responsibility of the Buyer
and/or the Companies.

ARTICLE VIII

INDEMNIFICATION

          8.01 General. From and after the Closing, the parties shall indemnify each other as
provided in this Article VIII.

          8.02 Seller’s Indemnification Obligations. Subject to the provisions of Sections
8.03, 8.07, 8.08 and 8.09, Seller shall indemnify, save and keep Buyer
and its Affiliates (each a “Buyer Indemnitee”) harmless against and from all injunctions,
judgments, orders, decrees, rulings, liabilities, obligations, liens, assessments, levies, costs,
losses, damages, fines, penalties and Third Party Claims (as defined below) and reasonable
attorneys’ fees and expenses incurred in connection with any of the foregoing (collectively,
“Damages”) sustained or incurred by any Buyer Indemnitee, as a result of, or arising out
of, or by virtue of:

     (a) any inaccuracy in or breach of any representation or warranty made by Seller to
Buyer herein, in any Seller Ancillary Agreement or in any closing document delivered to
Buyer in connection herewith;

     (b) the breach by Seller or any of its Affiliates of, or failure of Seller or any of
its Affiliates to comply with any of its covenants or obligations under this Agreement
(including its obligations under this Article VIII) or in any Seller Ancillary
Agreement;

     (c) the acts or omissions of Seller or the Companies (or of any of their Affiliates
with respect to the Companies) prior to the Effective Time, any Pre-Closing Liabilities, and
Seller’s and its Affiliates’ operation of the Companies prior to the Effective Time, but
excluding the Spanish Tax Claims; or

     (d) the Spanish Tax Claims.

          8.03 Limitation on Seller’s Indemnification Obligations. Except with respect to
claims made under (i) Section 8.02(b) with respect to a breach of, or failure to comply
with, Section 6.05, 10.07, 10.08 or 10.11, or (ii) Section 8.02(d), Seller’s
obligations pursuant to the provisions of Section 8.02 are subject to the following
limitations:

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     (a) The Buyer Indemnitees shall not be entitled to recover under Section
8.02(a) until the total amount which the Buyer Indemnitees would recover under
Section 8.02(a), but for this Section 8.03(a), exceeds $250,000 (“Seller
Deductible”), and then the Buyer Indemnitees shall be entitled to recover only for the
excess over the Seller Deductible; provided, however, that (i) for purposes of
determining the claims for which Damages may be applied to the Seller Deductible, the
representations and warranties contained herein shall be deemed not to include any
qualifications based on materiality and (ii) this Section 8.03(a) shall not apply in
respect of any breach of any representation or warranty made in Article III or
Section 4.01, 4.02, 4.03, 4.04 or 4.12.

     (b) The Buyer Indemnitees shall not be entitled to recover under Section 8.02
unless a claim has been asserted by written notice, specifying the details of the alleged
misrepresentation, breach of warranty or covenant or other basis for indemnification with
reasonable particularity, the sections of this Agreement alleged to have been breached
and/or supporting the claim, a good faith estimate of the Damages claimed, and the relevant
facts (a “Certificate”), delivered to Seller on or prior to the expiration of the
relevant survival period specified in Section 10.01. Upon delivery of a Certificate
by Buyer to Seller, Buyer shall be entitled at its discretion to withhold, up to the amount
of the Damages specified in such Certificate and net of that portion of the Escrow Amount
which is not subject to a claim for indemnification under Section 8.02, any amount
payable to Seller under Section 1.02(b)(v). However, in the event that Seller shall
object to all or any portion of such Damages and it is ultimately determined that Buyer is
not entitled to indemnification in respect of all or any portion of the amount withheld,
then Buyer shall, within five Business Days of such determination, pay to Seller the unduly
withheld amount, plus interest thereon from the date such amount should have been paid under
Section 1.02(b)(v) hereof until the date such amount is paid to Seller at a rate
equal to (i) the prime rate as published in The Wall Street Journal on the date such payment
should have been made under Section 1.02(b)(v) plus (ii) three percent (3%).

     (c) The Buyer Indemnitees shall not be entitled to recover under Section 8.02
for the amount of any Damages in excess of Two Million Five Hundred Thousand U.S. Dollars
($2,500,000); provided, however, that the Buyer Indemnitees shall be entitled to
recover under Section 8.02 for an aggregate cumulative amount of Ten Million U.S.
Dollars ($10,000,000) for Damages sustained or incurred by any Buyer Indemnitee as a result
of, arising out of, or by virtue of any Pre-Closing Liability; and, provided further, that
this Section 8.03(c) shall not apply in respect of any breach of any representation
or warranty made in Article III or Section 4.01, 4.02, 4.03, 4.04 or 4.12.
For purposes of clarification, Buyer and Seller agree that any Damages eligible for
indemnification under Section 8.02 shall first be satisfied from the Escrow Amount
and any additional Damages eligible for indemnification under Section 8.02 are
unsecured claims (subject to Buyer’s rights under Section 8.03(b) to withhold
amounts from any Contingent Payment).

     (d) The Buyer Indemnitees shall not be entitled to recover under Section 8.02:

     (i) with respect to consequential damages of any kind, damages consisting of
business interruption or lost profits (regardless of the characterization thereof),
damages for diminution in value of the Companies and/or their subsidiaries, damages
computed on a multiple of earnings or similar

22

 

basis, and indirect, special, exemplary and punitive damages, except for any
such damages suffered or incurred by a third party for which a Buyer Indemnitee is
otherwise entitled to recover under Section 8.02;

     (ii) with respect to any representation and warranty in respect of which Buyer
was obligated to notify Seller pursuant to Section 7.02 and failed to do so,
provided that this Section 8.03(d)(ii) shall not limit Buyer’s right to
recover under Section 8.02(b), (c), or (d);

     (iii) with respect to the failure to obtain any consent referenced in
Section 2.01(c) or (d) hereof;

     (iv) to the extent of any amount actually recovered in respect of the claim
under insurance held by or for the Companies or their subsidiaries (net of
commercially reasonable deductible amounts), other than any such recovery
under any self-insurance or insurance held through a captive insurer
affiliated with Buyer; and

     (v) to the extent the liability in question, taken together with all similar
liabilities, does not exceed the amount of any reserves with respect to such matters which
are taken into account in the calculation of the Working Capital Amount.

     (e) The amount of any recovery by the Buyer Indemnities pursuant to Section
8.02 shall be computed net of any Tax benefit actually realized by the Buyer Indemnitees
that is attributable to such Damages. To the extent that any such Tax benefit is actually
realized following the date that an indemnity payment is made hereunder, then no later than
30 days after a Tax Return has been filed that first takes into account the deduction, loss
or other Tax attribute generated as a result of the Damage that gave rise to such indemnity
payment, the Buyer Indemnitee shall pay to the Seller in immediately available funds the
amount of the Tax benefit that is actually realized as a result of the Damage that gave rise
to such indemnification (i.e., the reduction in Taxes that would have been otherwise due and
payable but for the deduction, loss or other Tax attribute generated as a result of the
Damages that gave rise to such indemnification), provided, that the Seller shall promptly
repay to the Buyer Indemnitee the amount of any such payment to the extent that the amount
of such Tax benefit is subsequently reduced or denied as a result of an adjustment to the
Buyer Indemnitee’s liability for Taxes. In the event that a deduction, loss or other Tax
attribute does not result in a Tax benefit actually realized, this Section 8.03(e)
shall continue to apply until such deduction, losses or other Tax attribute results in a Tax
benefit actually realized or the deduction, losses or other tax attribute expires without
being utilized. Solely for purposes of calculating Damages payable to the Buyer Indemnitees
pursuant to this Section 8.03(e), a Tax benefit shall be deemed to be actually
realized if a deferred tax asset reflected on the Latest Balance Sheet (which was not taken
into account in the Working Capital Amount), available at the time of the calculation
contemplated hereunder, is utilized by Buyer or its Affiliates in respect of such Damages.

     (f) The Buyer Indemnitees shall not be entitled to recover under Section 8.02
with respect to a Tax matter for which a claim has been asserted to the extent such matter

23

 

has been taken into account in the calculation of the Working Capital Amount, provided
that such reserves have been maintained in the ordinary course of business.

          8.04 Buyer’s Indemnification Obligations. Subject to the provisions of Sections
8.05, 8.07, 8.08 and 8.09, Buyer shall indemnify, save and keep Seller
and its Affiliates (“Seller Indemnitee”) harmless against and from all Damages sustained or
incurred by any Seller Indemnitee, as a result of or arising out of or by virtue of:

          (a) any inaccuracy in or breach of any representation or warranty made by Buyer to
Seller herein, in any Buyer Ancillary Agreement or in any closing document delivered to
Seller in connection herewith;

          (b) any breach by Buyer or any of its Affiliates of, or failure by Buyer or any of its
Affiliates to comply with, any of its covenants or obligations under this Agreement
(including without limitation its obligations under this Article VIII) or under any
Buyer Ancillary Agreement; or

          (c) the acts or omissions of Buyer or the Companies (or of any of their Affiliates with
respect to the Companies) after the Effective Time, any Post-Closing Liabilities and Buyer’s
and its Affiliates’ operation of the Companies after the Effective Time.

          8.05 Limitation on Buyer’s Indemnification Obligations. Except with respect to claims
made under Section 8.04(b) with respect to a breach of, or failure to comply with,
Section 7.04, 10.07 or 10.11, Buyer’s obligations pursuant to the provisions of Section
8.04 are subject to the following limitations:

          (a) The Seller Indemnitees shall not be entitled to recover under Section 8.04
unless a claim has been asserted by written notice, specifying the details of the alleged
misrepresentation, breach of warranty or covenant or other basis for indemnification with
reasonable particularity, the sections of this Agreement alleged to have been breached
and/or supporting the claim, a good faith estimate of the Damages claimed, and the relevant
facts, delivered to Buyer on or prior to the expiration of the relevant survival period
specified in Section 10.01.

          (b) The Seller Indemnitees shall not be entitled to recover under Section 8.04
for the amount of any Damages in excess of Two Million Five Hundred Thousand U.S. Dollars
($2,500,000); provided, however, that (i) this Section 8.05(b) shall not apply in
respect of (A) any breach of any representation or warranty made in Article V or (B)
any claims made under Section 8.04(c), and (ii) a claim by Seller for payment of the
Contingent Payment, if any, payable to Seller under Section 1.02(b)(v) shall not be
counted towards such limit.

          (c) The Seller Indemnitees shall not be entitled to recover under Section 8.04:

               (i) with respect to consequential damages of any kind, damages consisting of
business interruption or lost profits (regardless of the

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characterization thereof), damages for diminution in value of Seller or Parent
and/or their subsidiaries, damages computed on a multiple of earnings or similar
basis, and indirect, special, exemplary and punitive damages, except for any such
damages suffered or incurred by a third party for which such Seller Indemnitee is
otherwise entitled to recover under Section 8.04;

               (ii) with respect to the failure to obtain any consent referenced in
Section 2.02(d) hereof; and

               (iii) to the extent of any amount actually recovered in respect of the claim
under insurance held by or for Seller or Parent or their subsidiaries (net of
commercially reasonable deductible amounts), other than any such recovery under any
self-insurance or insurance held through a captive insurer affiliated with Seller.

     (d) The amount of any recovery by the Seller Indemnities pursuant to Section
8.04 shall be computed net of any Tax benefit actually realized by the Seller
Indemnitees that is attributable to such Damages. To the extent that any such Tax benefit
is actually realized following the date that an indemnity payment is made hereunder, then no
later than 30 days after a Tax Return has been filed that first takes into account the
deduction, loss or other Tax attribute generated as a result of the Damage that gave rise to
such indemnity payment, the Seller Indemnitee shall pay to the Buyer in immediately
available funds the amount of the Tax benefit that is actually realized as a result of the
Damage that gave rise to such indemnification (i.e., the reduction in Taxes that would have
been otherwise due and payable but for the deduction, loss or other Tax attribute generated
as a result of the Damages that gave rise to such indemnification), provided, that the Buyer
shall promptly repay to the Seller Indemnitee the amount of any such payment to the extent
that the amount of such Tax benefit is subsequently reduced or denied as a result of an
adjustment to the Seller Indemnitee’s liability for Taxes. In the event that a deduction,
loss or other Tax attribute does not result in a Tax benefit actually realized, this
Section 8.05(d) shall continue to apply until such deduction, losses or other Tax
attribute results in a Tax benefit actually realized or the deduction, losses or other tax
attribute expires without being utilized.

          8.06 Cooperation. Subject to the provisions of Section 8.07, the Indemnifying
Party shall have the right, at its own expense, to participate in the defense of any Third Party
Claim, and if said right is exercised, the parties shall cooperate in the investigation and defense
of said Third Party Claim.

          8.07 Third Party Claims. Forthwith following the receipt of notice of a Third Party
Claim, the party receiving the notice of the Third Party Claim shall notify the other party of its
existence setting forth with reasonable specificity the facts and circumstances of which such party
has received notice, and if the party giving such notice is an Indemnified Party, specifying the
basis hereunder upon which the Indemnified Party’s claim for indemnification is asserted;
provided, however that any failure or delay to deliver such notice shall only affect the
Indemnified Party’s rights under this Article VIII to the extent that such failure or delay
prejudices the Indemnifying Party’s ability to satisfactorily defend or settle the Third Party

25

 

           Claim. The Indemnified Party may, upon reasonable notice, tender the defense of a Third Party
Claim to the Indemnifying Party. If:

          (a) the defense of a Third Party Claim is so tendered by the Indemnified Party and
within 30 days thereafter such tender is accepted without qualification by the Indemnifying
Party; or

          (b) within 30 days after the date on which written notice of a Third Party Claim has
been given by the Indemnified Party pursuant to this Section 8.07, the Indemnifying
Party shall have acknowledged in writing without qualification its indemnification
obligations as provided in this Article VIII to the Indemnified Party and shall have
accepted the defense thereof;

then, except as herein provided, the Indemnified Party shall not, and the Indemnifying Party shall,
have the right to contest, defend, litigate or settle such Third Party Claim. The Indemnified
Party shall have the right to be represented by counsel at its own expense in any such contest,
defense, litigation or settlement conducted by the Indemnifying Party, provided that the
Indemnified Party shall be entitled to reimbursement therefor if the Indemnifying Party shall lose
its right to contest, defend, litigate and settle the Third Party Claim as herein provided or if
the named parties to any such action (including any impleaded parties) include both the Indemnified
Party and the Indemnifying Party and such Indemnified Party shall have been advised in writing by
counsel that there are one or more material legal defenses available to either party and that the
assertion (or nonassertion) by the Indemnifying Party of any of such defenses will be adverse to
the interests of the Indemnified Party. The Indemnifying Party shall lose its right to contest,
defend, litigate and settle the Third Party Claim if it shall fail to contest, in a commercially
reasonable manner and in a commercially reasonable time frame, the Third Party Claim. So long as
the Indemnifying Party has not lost its right and/or obligation to contest, defend, litigate and
settle as herein provided, the Indemnifying Party shall have the exclusive right to contest, defend
and litigate the Third Party Claim and shall have the exclusive right, in its discretion exercised
in good faith, and upon the advice of counsel, to settle any such matter, either before or after
the initiation of litigation, at such time and upon such terms as it reasonably deems fair and
reasonable, provided that at least ten (10) days prior to any such settlement, written notice of
its intention to settle shall be given to the Indemnified Party and provided further that, unless
otherwise approved in advance by the Indemnified Party in writing, any such settlement shall (i)
include a full unconditional release of the Indemnified Party and its Affiliates for all claims
related to the applicable Third Party Claim, (ii) not provide for any remedy other than the payment
of damages which are fully indemnified by the Indemnifying Party hereunder, and (iii) not involve
any admission of fault by the Indemnified Party or any of its Affiliates. Notwithstanding the
foregoing, Seller may not settle or otherwise dispose of (nor permit any of its Affiliates to
settle or otherwise dispose of) any matter involving the Tax liability of a Company (other than the
Spanish Tax Claims) without the prior written consent of Buyer (which shall not be unreasonably
withheld). All expenses (including without limitation attorneys’ fees) incurred by the
Indemnifying Party in connection with the foregoing shall be paid by the Indemnifying Party. No
failure by an Indemnifying Party to acknowledge in writing its indemnification obligations under
this Article VIII shall relieve it of such obligations to the extent they exist. If an
Indemnified Party is entitled to indemnification against a Third Party Claim, and the Indemnifying
Party fails to accept a tender of, or assume, the defense of a Third Party Claim pursuant to this
Section 8.07, or if, in accordance with the foregoing, the

26

 

Indemnifying Party shall lose its right to contest, defend, litigate and settle such a Third Party
Claim, the Indemnified Party shall have the right, without prejudice to its right of
indemnification hereunder, in its discretion exercised in good faith and upon the advice of
counsel, to contest, defend and litigate such Third Party Claim, and may settle such Third Party
Claim, eit
her before or after the initiation of litigation, at such time and upon such terms as the
Indemnified Party deems fair and reasonable, provided that at least ten (10) days prior to any such
settlement, written notice of its intention to settle is given to the Indemnifying Party. If,
pursuant to this Section 8.07, the Indemnified Party so contests, defends, litigates or
settles a Third Party Claim for which it is entitled to indemnification hereunder, the Indemnified
Party shall be reimbursed by the Indemnifying Party for the reasonable attorneys’ fees and other
expenses of contesting, defending, litigating and/or settling the Third Party Claim which are
incurred from time to time, forthwith following the presentation to the Indemnifying Party of
itemized bills for said attorneys’ fees and other expenses.

          8.08 Calculation of Damages. Neither a Buyer Indemnitee nor a Seller Indemnitee shall
be entitled to recover any amount due to it under this Article VIII more than once in
respect of the same Damage.

          8.09 Indemnification Exclusive Remedy. Except with respect to Sections 10.07 and
10.08 or in the case of fraud, indemnification pursuant to the provisions of this Article
VIII shall be the exclusive remedy of the parties for any misrepresentation or breach of any
warranty or covenant contained herein or in any closing document executed and delivered pursuant to
the provisions hereof. Without limiting the generality of the preceding sentence, no legal action
sounding in tort or strict liability may be maintained by any party.

          8.10 Tax Effect of Indemnification Payments. All indemnity payments made pursuant to
this Agreement shall be treated for all Tax purposes as adjustments to the Purchase Price.

ARTICLE IX

TERMINATION

          9.01 Termination. This Agreement may be terminated at any time prior to the Closing:

          (a) by the mutual consent of Buyer and Seller;

          (b) by Buyer, if there has been a material violation or breach by Seller of any
covenant, representation or warranty contained in this Agreement which has prevented the
satisfaction of any condition to the obligations of Buyer at the Closing and such violation
or breach has not been waived by Buyer or, in the case of a covenant breach, cured by Seller
within ten days after written notice thereof from Buyer;

          (c) by Seller, if there has been a material violation or breach by Buyer of any
covenant, representation or warranty contained in this Agreement which has prevented the
satisfaction of any condition to the obligations of Seller at the Closing and such violation
or breach has not been waived by Seller or, with respect to a covenant breach,

27

 

cured by Buyer within ten days after written notice thereof by Seller (provided that
the failure to deliver the Purchase Price at the Closing as required hereunder shall not be
subject to cure hereunder unless otherwise agreed to in writing by Seller); or

          (d) by either Buyer or Seller if the transactions contemplated hereby have not been
consummated by the close of business on September 1, 2006; provided that neither Buyer nor
Seller shall be entitled to terminate this Agreement pursuant to this Section
9.01(d) if such Person’s willful breach of this Agreement has prevented the consummation
of the transactions contemplated hereby.

          9.02 Effect of Termination. In the event of termination of this Agreement by either
Buyer or Seller as provided above, the provisions of this Agreement shall immediately become void
and of no further force and effect (other than this Section 9.02 and Article XII
hereof which shall survive the termination of this Agreement), and there shall be no liability on
the part of either Buyer or Seller to one another, except for willful breaches of this Agreement
prior to the time of such termination.

ARTICLE X

ADDITIONAL COVENANTS

          10.01 Survival. The representations and warranties set forth in this Agreement and in
any Seller Ancillary Agreements, Buyer Ancillary Agreements or certificates delivered at the
Closing in connection with this Agreement shall be made as of the Closing and shall not continue
thereafter, except that any claims for Damages made related thereto may be brought during (but only
during) the following time frames pursuant to the terms of this Agreement.

          (a) Claims related to Article III or Section 4.01, 4.02, 4.03, 4.04, 4.12,
5.01, 5.02, 5.03, 5.04, 5.05 or 5.06 may only be brought prior to the tenth anniversary
of the Closing Date.

          (b) Subject to Section 10.01(c), claims related to Pre-Closing Liabilities,
Section 4.08, or Section 4.19, may only be brought prior to 30 days after
the expiration of the applicable statute of limitations, including any extensions thereof,
for the relevant matter.

          (c) Claims related to Pre-Closing Liabilities described in clause (v) of the definition
of “Pre-Closing Liabilities” in Article XI (client claims) may only be brought prior
to the first anniversary of the Closing Date.

          (d) Claims related to Section 10.07 (Non-Competition) may only be brought prior
to 90 days after the fourth anniversary of the Closing Date. Claims related to Section
10.07(f) (Non-Solicitation) may only be brought prior to 90 days after the third
anniversary of the Closing Date.

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          (e) Claims related to Post-Closing Liabilities, Spanish Tax Claims or related to
Section 10.08 may be brought at any time.

          (f) Claims related to any representations and warranties set forth in this Agreement
and in any certificates delivered at the Closing in connection with this Agreement not
specifically addressed in this Section 10.01 may only be brought prior to the first
anniversary of the Closing Date.

          (g) Claims related to the covenants set forth in this Agreement not specifically
addressed in this Section 10.01 shall terminate upon the six year anniversary of the
Closing Date unless a different specific termination date is provided for in a covenant, in
which case the specific termination date shall apply.

          10.02 Disclosure Generally. If and to the extent any information required to be
furnished in any Schedule or certificate is contained in this Agreement or in any Schedule attached
hereto or certificate delivered pursuant hereto, such information shall be deemed to be included in
any other Schedule attached hereto if and to the extent the relevance of such information to such
other Schedule is reasonably apparent. The inclusion of any information in any Schedule attached
hereto shall not be deemed to be an admission or acknowledgment by Seller, in and of itself, that
such information is material to or outside the ordinary course of the business of the Companies.

          10.03 Acknowledgment by Buyer. Buyer acknowledges that it has conducted to its
satisfaction, an independent investigation of the financial condition, results of operations,
assets, liabilities, properties and projected operations of the Companies and, in making its
determination to proceed with the transactions contemplated by this Agreement, Buyer has relied on
the results of its own independent investigation and the representations and warranties of Seller
expressly and specifically set forth in this Agreement, including the Schedules and the certificate
under Section 2.01(f)(i). SUCH REPRESENTATIONS AND WARRANTIES BY SELLER CONSTITUTE THE
SOLE AND EXCLUSIVE REPRESENTATIONS AND WARRANTIES OF SELLER TO BUYER IN CONNECTION WITH THE
TRANSACTIONS CONTEMPLATED HEREBY, AND BUYER UNDERSTANDS, ACKNOWLEDGES AND AGREES THAT ALL OTHER
REPRESENTATIONS AND WARRANTIES OF ANY KIND OR NATURE EXPRESSED OR IMPLIED (INCLUDING, BUT NOT
LIMITED TO, ANY RELATING TO THE FUTURE OR HISTORICAL FINANCIAL CONDITION, RESULTS OF OPERATIONS,
ASSETS OR LIABILITIES OF THE COMPANIES) ARE SPECIFICALLY DISCLAIMED BY SELLER.

          10.04 Arbitration Procedure.

          (a) Buyer and Seller agree that the arbitration procedure set forth below shall be the sole
and exclusive method of resolving and remedying any and all disputes regarding claims for money
damages based upon, arising out of or in any way connected with the Agreement or the transactions
contemplated herein (the “Disputes”). Nothing in this Section 10.04 shall prohibit
a party from instituting litigation to enforce any Final Determination (as

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           defined below). The parties hereby agree and acknowledge that, except as otherwise provided
in this Section 10.04 or in the commercial Arbitration Rules of the AAA as in effect from
time to time, the arbitration procedures and any Final Determination hereunder shall be governed by
and shall be enforced pursuant to the Uniform Arbitration Act as in effect in the State of
Delaware, USA.

          (b) In the event that any party asserts that there exists a Dispute, such party shall deliver
a written notice to each other party involved therein specifying the nature of the asserted Dispute
and requesting a meeting to attempt to resolve the same. If no such resolution is reached within
45 days after such delivery of such notice, the party delivering such notice of Dispute may, within
75 days after delivery of such notice, commence arbitration hereunder by delivering to each other
party involved therein a notice of arbitration (a “Notice of Arbitration”). Such Notice of
Arbitration shall specify the matters as to which arbitration is sought, the nature of any Dispute,
the claims of each party to the arbitration and the amount and nature of damages or other relief
sought to be recovered as a result of any alleged claim and any other matters required by the
Commercial Arbitration Rules of the AAA as in effect from time to time to be included therein.

          (c) Buyer and Seller each shall select one arbitrator expert in the subject matter of the
Dispute (the arbitrators so selected shall be referred to herein as “Buyer’s Arbitrator”
and “Seller’s Arbitrator,” respectively). In the event that either party fails to select
an arbitrator as set forth herein within 30 days after the delivery of a Notice of Arbitration,
then the matter shall be resolved by the arbitrator selected by the other party. Seller’s
Arbitrator and Buyer’s Arbitrator shall select a third independent, neutral arbitrator expert in
the subject matter of the Dispute, and the three arbitrators so selected shall resolve the Dispute
according to the procedures set forth in this Section 10.04. If Seller’s Arbitrator and
Buyer’s Arbitrator are unable to agree on a third arbitrator within 20 days after their selection,
Seller’s Arbitrator and Buyer’s Arbitrator shall each prepare a list of three independent
arbitrators. Seller’s Arbitrator and Buyer’s Arbitrator shall each have the opportunity to
designate as objectionable and eliminate one arbitrator from the other arbitrator’s list within ten
days after submission thereof, and the third arbitrator shall then be selected by lot from the
arbitrators remaining on the lists submitted by Seller’s Arbitrator and Buyer’s Arbitrator.

          (d) The arbitrators selected pursuant to paragraph (c) shall determine the allocation of the
costs and expenses of arbitration based upon the percentage which the portion of the contested
amount not awarded to each party bears to the amount actually contested by such party. For
example, if Buyer submits a claim for $1,000 and if Seller contest only $500 of the amount claimed
by Buyer, and if the arbitrators ultimately resolves the dispute by awarding Buyer $300 of the $500
contested, then the costs and expenses of arbitration will be allocated 60% (i.e., 300 of 500) to
Seller according to their respective Pro Rata Shares and 40% (i.e., 200 of 500) to Buyer.

          (e) The arbitration shall be conducted in New York, New York, under the Commercial Arbitration
Rules of the AAA as in effect from time to time, except as modified by the agreement of Buyer and
Seller. The arbitrators shall conduct the arbitration such that a final result, determination,
finding, judgment and/or award (the “Final Determination”) is made or

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rendered as soon as practicable, but in no event later than 120 days after the delivery of the
Notice of Arbitration nor later than ten days following completion of the arbitration. The Final
Determination shall be made in writing, shall state the basis for such determination and shall be
agreed upon and signed by the sole arbitrator or by at least two of the three arbitrators (as the
case may be). The Final Determination shall be final and binding on all parties, and there shall
be no right of appeal from or reexamination of the Final Determination, except for fraud, perjury,
evident partiality or misconduct by an arbitrator prejudicing the rights of any party and to
correct manifest clerical errors.

          (f) Buyer and Seller may enforce any Final Determination in any state or federal court having
jurisdiction over the Dispute. For the purpose of any action or proceeding instituted with respect
to any Final Determination, each party hereto hereby irrevocably submits to the jurisdiction of
such courts, irrevocably consents to the service of process by registered mail or personal service
and hereby irrevocably waives, to the fullest extent permitted by law, any objection which it my
have or hereafter have as to personal jurisdiction, the laying of the venue of any such action or
jurisdiction, the laying of the venue of any such action or proceeding brought in any such court
and any claim that any such action or proceeding brought in any court has been brought in an
inconvenient form.

          (g) If any party shall fail to pay the amount of any damages, if any, assessed against it
within 20 days after the delivery to such party of such Final Determination, the unpaid amount
shall bear interest from the date of such delivery at the lesser of (i) the prime rate of interest
announced by Citibank N.A., in effect from time to time (which rate shall be adjusted on the
effective date of each change in such prime rate) and (ii) the maximum rate permitted by applicable
usury laws. Interest on any such unpaid amount shall be compounded semi-annually, computed on the
basis of a 360-day year consisting of twelve 30-day months and shall be payable on demand. In
addition, such party shall promptly reimburse the other party from any and all costs and expenses
of any nature or kind whatsoever (including reasonable legal fees and expenses) incurred in seeking
to collect such damages or to enforce any Final Determination.

          10.05 Tax Matters.

          (a) Seller shall cause the Companies to prepare and file on a timely basis all Tax Returns of
the Companies due on or prior to the Effective Date. Seller shall, at the sole cost and expense of
the Companies, prepare (and, to the extent permitted by law, timely file) all income Tax Returns of
the Companies that are due after the Effective Date, but which relate to taxable periods ending on
or prior to the Effective Date (“Pre-Closing Income Tax Returns”). Any such Tax Returns prepared
by Seller shall be prepared on a basis consistent with existing procedures and practices of the
Companies. To the extent any Pre-Closing Income Tax Return is required to be filed by a Company,
Seller shall deliver such return to the Company no later than ten (10) business days prior to the
date such return is due and Buyer shall cause the Company to file such Tax Return on a timely
basis. Buyer shall cause the Companies to prepare and file on a timely basis all Tax Returns of
the Companies (other than Pre-Closing Income Tax Returns) due after the Effective Date that relate
to taxable periods ending after the Effective Date and such Tax Returns shall be prepared in a
manner consistent with existing procedures and practices of the Companies. Seller and Buyer shall
not amend a Tax Return (or extend the applicable statute of limitations) for any tax years ending
on or before the Effective

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Date without the prior written permission of the other party (which will not be unreasonably
withheld), except as otherwise required by applicable law.

          (b) Buyer, the Companies (through Buyer’s control) and Seller shall provide each other with
notice of and such assistance as may reasonably be requested by the others in connection with the
preparation of any return or report of Taxes, any audit or other examination by any taxing
authority, or any judicial or administrative proceedings relating to liabilities for Taxes. Such
assistance shall include making employees available on a mutually convenient basis to provide
additional information or explanation of material provided hereunder, shall include providing
copies of relevant tax returns and supporting material and shall include executing reasonably
prepared documents related to the Companies for periods prior to the Effective Date that Seller has
liability therefor. The party requesting assistance hereunder shall reimburse the assisting party
for reasonable out-of-pocket expenses incurred in providing assistance. Buyer, the Companies
(through Buyer’s control) and Seller will retain for the full period of any statute of limitations
or applicable law (and any further period during which a claim is outstanding), and provide the
others, with any records or information which may be relevant to such preparation, audit,
examination, proceeding or determination.

          (c) All federal, state, local, foreign and other transfer Tax applicable to, imposed upon or
arising out of the transfer of the Shares shall be borne equally by Seller and Buyer.

          (d) All refunds, plus interest thereon, for Taxes for periods ending on or before the
Effective Date shall be property of Seller and such refunds, plus any interest earned in connection
with the refund, shall be paid to Seller by Buyer or the Companies promptly upon receipt. All
other refunds for Taxes for periods after the Effective Date, plus interest thereon, shall be the
property of Buyer and the Companies and shall be paid to Buyer or the Companies by Seller promptly
upon receipt if so received by Seller. Buyer and the Companies (through Buyer’s control) shall
cooperate with Seller at Seller’s expense to obtain any refunds (including filing amended returns)
that are property of Seller. This Section 10.05(d) shall not apply to the extent that such
refund amounts were reflected in the Working Capital Amount.

          (e) Without the prior written consent of Seller or Parent, Buyer and the Companies (through
Buyer’s control) or any of their Affiliates, to the extent permitted by applicable law, shall not
carryback any net operating losses or other tax attributes of the Companies to any period ending on
or before the Effective Date and Buyer and the Companies (through Buyer’s control) shall make all
necessary elections, and cause their Affiliates, to make all necessary elections to not carryback
net operating losses or other tax attributes to any period ending on or before the Effective Date.
If the Buyer or the Companies or any of their Affiliates is required to carryback a net operating
loss or other tax attribute to a period ending on or before the Effective Date, Buyer and such
Company shall indemnify and hold the Seller and its Affiliates harmless from any adverse Tax
consequences resulting from such carryback. (including any adverse consequences resulting from a
disallowance of the item being carried back).

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          (f) At Buyer’s sole discretion, Buyer shall timely make an election provided for by Section
338 of the Code and Section 1.338-1 of the Treasury Regulations on Form 8023 and any comparable
election under state or local tax law (collectively, the “338 Election”) for each of the Companies.
Buyer and Seller shall cooperate with each other to take all actions necessary and appropriate to
effect and preserve a timely 338 Election in accordance with the provisions of Section 338 of the
Code and Section 1.338-1 of the Treasury Regulations (or any comparable provisions of state or
local tax law) or any successor provisions. Seller and Buyer shall report (or cause to be
reported) on their Tax Returns the purchase by Buyer of the Shares pursuant to this Agreement
consistent with the 338 Election and shall take no position inconsistent therewith in any Tax
Return, any proceeding before any taxing authority.

          10.06 Further Assurances. From time to time, as and when requested by any party
hereto and at such party’s expense, any other party shall execute and deliver, or cause to be
executed and delivered, all such documents and instruments and shall take, or cause to be taken,
all such further or other actions as such other party may reasonably deem necessary or desirable to
evidence and effectuate the transactions contemplated by this Agreement, including informational
assistance and making employees available on a mutually convenient basis to provide background or
explain materials provided. In particular, Buyer agrees to cooperate (and to cause the Companies
to cooperate) with the implementation of the actions described in Section 6.07.

          10.07 Non-Competition; Non-Solicitation.

          (a) From and after the Closing, Seller and its Affiliates shall not, directly or indirectly,
promote, market, render or perform consulting services for a period of four (4) years from the
Closing Date for Telco Restricted Clients (as defined in Article XI) in Europe, Brazil or
the Middle East (collectively, the “Telco Restricted Areas”).

          (b) Notwithstanding the foregoing or anything herein to the contrary, the restrictions set
forth in Section 10.07(a) shall not apply to the extent a client outside of the Telco
Restricted Areas (including without limitation a business unit, office or company operation located
outside of the Telco Restricted Areas that is part of an organization headquartered in the Telco
Restricted Areas) and for whom Seller or any of its Affiliates is performing consulting services
outside of the Telco Restricted Areas requests Seller or any of its Affiliates to perform
additional consulting services in the Telco Restricted Areas.

          (c) Seller and its Affiliates shall be free to conduct their operations without any other
restrictions except for those specifically provided for in Section 10.07(a). In the event
that Parent sells substantially all of its assets to a third party or more than 50% of its
outstanding capital stock is purchased by a third party prior to the fourth anniversary of the
Closing Date, this Section 10.07 shall not apply to such third party purchaser and its
Affiliates, excluding Seller, Parent and DiamondCluster International Limited, after such sale.

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          (d) Promoting, marketing, rendering or performing the prohibited consulting services under
this Section 10.07 shall include: owning, managing, operating or controlling any Person
that provides or performs such prohibited consulting services (provided, however, this
provision shall not prevent Seller or any Affiliate from owning, directly or indirectly, up to 5%
of any class of publicly traded securities of any Person); persuading or attempting to persuade any
Telco Restricted Client not to purchase any consulting services provided by the Companies, Buyer or
any of its Affiliates; and disclosing, furnishing, or making accessible to any Person any
proprietary information or trade secrets of the Companies related to consulting for Telco
Restricted Clients (other than as required by law, provided Seller promptly notifies Buyer so that
Buyer may seek to obtain a protective order or similar remedy).

          (e) From and after the Closing until the third anniversary of the Closing Date, Seller and its
Affiliates shall not solicit or hire, or assist in the solicitation or hiring of, (i) any person
who is an employee of the Companies immediately prior to the Closing and becomes an employee of
Buyer or any of its Affiliates upon the Closing as a result of the transactions contemplated
hereunder or (ii) any employee of the Buyer or any Mercer MC Affiliate in the United Kingdom,
Ireland or India who performs consulting services for clients in the telecommunications industry in
the United Kingdom, Ireland or India; provided, however, that (A) if an employee is
involuntarily terminated by Buyer or any of its Affiliates, the restrictions in the foregoing
clauses (i) and (ii) shall not apply to such employee after the effective date of such termination,
and (B) if an employee voluntarily terminates his or her employment with Buyer or any of its
Affiliates, the restrictions in the foregoing clause (ii) shall not apply to such employee after
the six-month anniversary of such termination. From and after the Closing until the third
anniversary of the Closing Date, Buyer and its MC Affiliates shall not solicit or hire, or assist
in the solicitation or hiring of, any person who is an employee of the Seller or any of its
Affiliates in the United Kingdom, Ireland or India who performs consulting services for clients in
the telecommunications industry in the United Kingdom, Ireland or India; provided,
however, that (A) if an employee is involuntarily terminated by Seller or any of its
Affiliates, the foregoing restriction shall not apply to such employee after the effective date of
such termination, and (B) if an employee voluntarily terminates his or her employment with Seller
or any of its Affiliates, the foregoing restriction shall not apply to such employee after the
six-month anniversary of such termination.

          (f) It is the intent of the parties to this Agreement that the provisions of this Section
10.07 shall be enforced to the fullest extent permissible under the laws and public policies
applied in each jurisdiction in which enforcement is sought. If any particular provision or
portion of this Section 10.07 shall be adjudicated to be invalid or unenforceable, such
provision or portion thereof shall be deemed amended to the minimum extent necessary to render such
provision or portion valid and enforceable, such amendment to apply only with respect to the
operation of such provision or portion in the particular jurisdiction in which such adjudication is
made. The parties acknowledge that damages and remedies at law for any breach or threatened breach
of this Section 10.07 may be inadequate and that Buyer shall be entitled to specific
performance and other equitable remedies (including an injunction) and such other relief as a court
or tribunal may deem appropriate in addition to any other remedies Buyer may have.

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          10.08 Spanish Tax Claims. Notwithstanding anything herein to the contrary, Seller
shall retain all liability (including, without limitation, all reasonable attorney and advisor
fees, bank guarantees and indemnity and reimbursement obligations in respect of any bank
guarantees) for, and control of, and any refund from, the Tax audits and claims listed on
Schedule 10.08 related to DiamondCluster International S.L. Sociedad Unipersonal without
regard to time or liability limitations (the “Spanish Tax Claims”). Buyer agrees to comply with
Section 10.05 and Section 10.06 in connection therewith. Notwithstanding anything
herein to the contrary, Seller may not enter into any settlement or other agreement in respect of
the Spanish Tax Claims (or any portion thereof) which (i) involves any admission of fault by Buyer
or any of its Affiliates (including the Companies), or (ii) makes any commitments with respect to,
or sets a precedent in respect of, the future operations or business of Buyer or any of its
Affiliates (including the Companies), without Buyer’s prior written consent, which shall not be
unreasonably withheld. Seller shall maintain, and shall not withdraw, cancel or otherwise
terminate (nor permit to be withdrawn, cancelled or otherwise terminated) the bank guarantees
listed in item 2 on Schedule 10.08 other than to replace such bank guarantees with a
substitute guarantee reasonably acceptable to Buyer or upon the final settlement or other final
disposition of the underlying matter.

          10.09 Trademarks and Trade Names. After the Closing, Seller and its Affiliates shall
not use and shall not license or give permission to any third party to use any name, logo or
trademark which is similar or deceptively similar to any of those used by the Companies prior to
the Closing, including the trade names “Cluster” and “Cluster Consulting”. After the Closing,
Buyer and its Mercer MC Affiliates shall not use and shall not license or give permission to any
third party to use any name, logo or trademark which is similar or deceptively similar to
“Diamond”, “Diamond Consulting”, “Diamond Technology Partners”, “DiamondCluster” or the green
diamond logo. After the Closing, Seller and its Affiliates shall promptly cease to use any name,
logo or trademark which is similar or deceptively similar to “Cluster”, including changing their
legal entity names, no later than 90 days after the Closing. After the Closing, Buyer shall cause
the Companies to change their legal entity names no later than 90 days after the Closing.

          10.10 Confidentiality. From and after the Closing, Seller shall, and shall cause its
Affiliates to, hold and keep confidential (and not disclose or use) any information regarding the
Companies, provided that the foregoing shall not apply to (a) any information which is publicly
available at the time of disclosure (through no fault of Seller or any of its Affiliates) or (b)
disclosures which are required to be made by Seller or any of its Affiliates under legal or
regulatory process or pursuant to applicable law or regulation (including in connection with any
Tax or regulatory filing).

          10.11 Uncollected Receivables. After the Closing, Buyer shall, and shall cause the
Companies to, use no lesser efforts with respect to the invoicing and collection of accounts
receivables of the Companies included in the Working Capital Assets (collectively, “Company
Receivables”) than Buyer and the Companies have historically used with respect to the invoicing and
collection of similar receivables generated by Buyer and the Companies, as the case may be. Such
efforts shall include, at a minimum, (i) prompt invoicing in accordance with all applicable
contractual and/or client policies; (ii) compliance with client expense reimbursement policies and
the provision of receipts upon request; (iii) follow-up correspondence, calls and in person

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meetings as necessary for collection; (iv) maintenance of monthly reports tracking
billing/collection activities as well as the status and aging of Company Receivables, which reports
shall be promptly provided to Seller and (v) discussions between senior management of Buyer and the
Company employees responsible for the Company Receivables, with Buyer maintaining and enforcing a
policy at the Companies whereby the existence of any Uncollected Receivables will have a negative
impact on the compensation paid to the employees responsible for the same. Seller shall, if
requested by Buyer, cooperate in Buyer’s efforts to collect upon the Company Receivables. On the
181st day following the Closing, Buyer shall, or shall cause the applicable Company to, assign to
Seller all of the Companies’ right, title and interest in any Company Receivable that remains
uncollected 180 days following the Closing (the “Uncollected Receivables”) and Seller shall pay to
Buyer (or any Affiliate of Buyer designated by Buyer) in immediately available funds an amount
equal to the Uncollected Receivables less any amounts accrued for bonuses pursuant to Section
6.06. Buyer shall remit to Seller any amounts received by Buyer or any of its Affiliates after
the 181st day following the Closing with respect to such Uncollected Receivables.

          10.12 Email Transition. As a transitional arrangement, with respect to emails
received by Seller or any of its Affiliates which were addressed to any of the Companies’ email
addresses for the Employees, Seller shall use all reasonable commercial efforts to ensure that for
a period of five (5) months after the Closing Date, (i) an automatic reply will be sent in response
to all such emails indicating new contact details for such Employee and (ii) any such email will be
forwarded to the new email addresses of the Employees (as provided by Buyer to Seller). Seller and
Buyer shall agree the contents of any automatic reply in respect of incoming emails.

          10.13 UK Employment Claims. Seller and Buyer shall cooperate (and shall cause their
Affiliates to cooperate) with one another in the resolution and payment of any UK Employment Claims
that arise after the Closing. Seller and Buyer shall share equally the cost of any amounts payable
to any UK Employees in respect of any such UK Employment Claims.

ARTICLE XI

DEFINITIONS

          “AAA” means the American Arbitration Association.

          “Affiliates” of any particular Person means any other Person controlling, controlled
by or under common control with such particular Person, where “control” means the possession,
directly or indirectly, of the power to direct the management and policies of a Person whether
through the ownership of voting securities, contract or otherwise.

          “Buyer” has the meaning set forth in the Preamble.

          “Buyer Ancillary Agreements” means the Escrow Agreement, the German Share Transfer
Agreement, the Spanish Share Transfer Deed, the French Share Transfer Agreement and all other
agreements or instruments to be executed and delivered by Seller in connection with the
transactions contemplated hereby.

          “Buyer Indemnitee” has the meaning set forth in Section 8.02.

          “Buyer’s Arbitrator” has the meaning set forth in Section 10.04(c).

          “Buyer’s Representatives” has the meaning set forth in Section 6.02.

          “Certificate” has the meaning set forth in Section 8.03(b).

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          “Closing” has the meaning set forth in Section 1.03(a).

          “Closing Date” has the meaning set forth in Section 1.03(a).

          “Cluster Single Count Revenue” has the meaning set forth in Section
1.02(b)(v)(B).

          “Company(ies)” has the meaning set forth in the Preamble.

          “Company Receivables” has the meaning set forth in Section 10.11.

          “Confidentiality Agreement” has the meaning set forth in Section 6.02.

          “Contingent Payment” has the meaning set forth in Section 1.02(b)(v).

          “Damages” has the meaning set forth in Section 8.02.

          “Disputes” has the meaning set forth in Section 10.04(a).

          “Effective Date” has the meaning set forth in Section 1.03(a).

          “Effective Time” has the meaning set forth in Section 1.03(a).

          “Employees” has the meaning set forth in Section 4.14(a).

          “Environmental Laws”: any federal, state, local or foreign statute, law, rule,
regulation, ordinance, code, permit, order or rule of common law now in effect and in each case as
amended to date and any judicial or administrative interpretation thereof relating to Hazardous
Materials, environmental matters, the protection of public health and safety from environmental or
health concerns or otherwise relating to environmental conditions.

          “Equity Awards” means any stock options, stock ownership rights, stock appreciation
rights, restricted stock units, phantom stock or other equity award grants issued by Seller (or one
of its Affiliates) in respect of the capital stock of Parent.

          “Escrow Agreement” has the meaning set forth in Section 1.04(a).

          “Escrow Amount” has the meaning set forth in Section 1.04(a).

          “Europe” means collectively Switzerland and the countries which are member states of
the European Union as of the Closing Date.

          “Final Determination” has the meaning set forth in Section 10.04(e).

          “French Share Transfer Agreement” means a share transfer agreement, in a form mutually
acceptable to Buyer and Seller, to be executed by Buyer and Seller as of the Closing Date to effect
the transfer of the Shares of DiamondCluster International SARL.

          “German Share Transfer Agreement” means a notarized share transfer agreement, in a
form mutually acceptable to Buyer and Seller, to be executed by Buyer and Seller as of the Closing
Date to effect the transfer of the Shares of DiamondCluster International Management Beratung GmbH.

          “Guaranty” means the Guaranty of Payment and Performance to be executed by Parent in
the form of Annex 2.

          “Hazardous Materials” means all hazardous substances, wastes, materials or
constituents, solid wastes, special wastes, toxic substances, pollutants, contaminants, petroleum
or petroleum derived substances or wastes, radioactive materials, urea formaldehyde,
polychlorinated biphenyls, radon gas and related materials, including, without limitation, any such
materials defined, listed, identified under or described in any applicable Environmental Laws.

          “Intellectual Property” has the meaning set forth in Section 4.10.

          “Indemnified Party” means, with respect to a particular matter, a Person who is
entitled to indemnification from another party hereto pursuant to Article VIII.

          “Indemnifying Party” means mean, with respect to a particular matter, a party hereto
who is required to provide indemnification under Article VIII to another Person.

          “Latest Balance Sheet” has the meaning set forth in Section 4.05.

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          “Liabilities” has the meaning set forth in Section 4.17.

          “Material Adverse Effect” means any event, occurrence or action which, with or without
the passage of time, would have a material adverse effect on the assets, business, results of
operations or condition (financial or otherwise) of any Company, but excluding any change or event
in the industry in which the Companies compete that does not disproportionately affect the
Companies, and excluding political and economic matters of general application.

          “Mercer MC Affiliate” means any Affiliate of Buyer who operates under the Mercer
Management, Mercer Oliver Wyman, Oliver Wyman or Cluster business names (or any successor business
names) or who in the future operates under Buyer’s “Mercer Specialty Consulting Group”.

          “Middle East” means the countries of the United Arab Emirates, Saudi Arabia, Kuwait,
Yemen, Egypt, Iraq, Lebanon, Morocco, Oman, Qatar, Jordan and Bahrain.

          “Notice of Arbitration” has the meaning set forth in Section 10.04(b).

          “Parent” has the meaning set forth in the Preamble.

          “Partners” means the Vice Presidents and Managing Directors of the Companies and
DiamondCluster International Limited who are listed on Schedule 2.01(f)(ix).

          “Person” means an individual, a partnership, a corporation, a limited liability
company, an association, a joint stock company, a trust, a joint venture, an unincorporated
organization and a governmental entity or any department, agency or political subdivision thereof.

          “Plans” has the meaning set forth in Section 4.14(b).

          “Post-Closing Liabilities” means (i) any liabilities, obligations or commitments of
any Company, whether absolute, accrued, contingent, known or unknown or otherwise, based on or
arising out of or in connection with such Company’s or Buyer’s or any of Buyer’s Affiliates’
ownership, possession, use or operation of such Company and its business and assets after the
Effective Time or the employment by Buyer (or any of its Affiliates) of the UK Employees after the
Effective Date, and (ii) any liabilities and obligations for Taxes of any Company with respect to
any taxable period that begins and ends after the Effective Date and, with respect to any Straddle
Period, the Buyer’s allocable share of such Taxes. For purposes of apportioning Taxes for a
Straddle Period, Taxes shall be apportioned as follows:

          A. in the case of Taxes that are either (i) based upon or related to income or receipts or
(ii) imposed in connection with any sale or other transfer or assignment of property (real or
personal, tangible or intangible), such Taxes shall be deemed equal to the amount that would be
payable if the taxable year ended on and included the Effective Date; and

          B. in the case of Taxes not described in (A) above that are imposed on a periodic basis and
measured by the amount, value or level of any item (such as personal property taxes and real estate
taxes), such Taxes shall be deemed to be the amount of such Taxes for the entire period multiplied
by a fraction, the numerator of which is the number of calendar days in the taxable period ending
on (and including) the Effective Date, and the denominator of which is the number of calendar days
in the entire taxable period.

          “Pre-Closing Income Tax Returns” has the meaning set forth in Section
10.05(a).

          “Pre-Closing Liabilities” means:

	 	(i)	 	any liabilities and obligations for Taxes of any Company with
respect to taxable periods ending on or prior to the Effective Date and, with
respect to any Straddle Period, the Seller’s allocable share of such Taxes as

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	 	 	 	described in the definition of Post-Closing Liabilities, but excluding in
each case the Spanish Tax Claims;

	 	(ii)	 	any liabilities and obligations for Taxes of any Person (other
than any Company, Buyer or any Affiliate of Buyer) imposed on any Company as a
result of it being a member of any consolidated, affiliated, combined or
unitary group of which any Company has been a member or participant for any
taxable period, but excluding the Spanish Tax Claims;
	 
	 	(iii)	 	any liabilities and obligations (including, without
limitation, any accounts payable) arising out of the employment and/or
termination of employment of any employee by any Company or any of its
Affiliates on or prior to the Effective Date, but excluding that portion of any
such liability which accrues after the Effective Date or is attributable to any
acts or omissions of the Companies, Buyer or any of Buyer’s Affiliates after
the Effective Date;
	 
	 	(iv)	 	any liabilities and obligations under or with respect to any
employee benefit plan, program, contract, agreement or arrangement (including,
without limitation, any pension, incentive compensation, bonus, life insurance,
disability, medical, vacation accrual, sabbatical, severance and termination
benefits) covering past or present employees of the Companies or any of their
Affiliates or their beneficiaries, which liability or obligation arises on or
prior to the Effective Date, but excluding that portion of any such liability
or obligation which accrues after the Effective Date or is attributable to any
acts or omissions of the Companies, Buyer or any of Buyer’s Affiliates after
the Effective Date;
	 
	 	(v)	 	any liabilities to any client of any Company in respect of work
performed prior to the Effective Time; and
	 
	 	(vi)	 	any liabilities and obligations in respect of Equity Awards
(whether arising prior to, on or after the Effective Date), including, without
limitation, the obligations described in Section 6.07.

          “Preliminary Working Capital Amount” has the meaning set forth in Section
1.02(b)(i).

          “Purchase Price” has the meaning set forth in Section 1.02(a).

          “Restricted Areas” has the meaning set forth in Section 10.07(c).

          “Reviewing Accountant” has the meaning set forth in Section 1.02(b)(iii).

          “Revised Schedule” has the meaning set forth in Section 1.02(b)(ii).

          “Seller” has the meaning set forth in the Preamble.

          “Seller Ancillary Agreements” means the Escrow Agreement, the UK Comfort Letter, the
Trademark Assignment, the Guaranty, the German Share Transfer Agreement, the Spanish Share Transfer
Deed, the French Share Transfer Agreement and all other agreements or instruments to be executed
and delivered by Seller in connection with the transactions contemplated hereby.

          “Seller Deductible” has the meaning set forth in Section 8.03(a).

          “Seller Indemnitee” has the meaning set forth in Section 8.04.

          “Seller’s Arbitrator” has the meaning set forth in Section 10.04(c).

          “Shares” has the meaning set forth in the Preamble.

          “Single Count Revenue” has the meaning set forth in Section 1.02(b)(v)(B)

39

 

          “Spanish Share Transfer Deed” means the transfer deeds, in a form mutually acceptable
to Buyer and Seller, to be executed by Buyer and Seller as of the Closing Date to effect the
transfer of the Shares of DiamondCluster International S.L. Sociedad Unipersonal.

          “Spanish Tax Claims” has the meaning set forth in Section 10.08.

          “Straddle Period” means any taxable period that begins on or before the Effective Date
and ends after the Effective Date.

          “Tax” or “Taxes” means any federal, state, local or foreign income, gross
receipts, capital stock, franchise, profits, withholding, social security, social insurance,
unemployment, disability, real property, ad valorem/personal property, stamp, excise, occupation,
sales, use, transfer, value added, alternative minimum, estimated or other tax, including any
interest, penalty or addition thereto, whether disputed or not.

          “Tax Returns” means any return, report, information return or other document
(including schedules or any related or supporting information) filed or required to be filed with
any governmental entity or other authority in connection with the determination, assessment or
collection of any Tax or the administration of any laws, regulations or administrative requirements
relating to any Tax.

          “Telco Restricted Areas” has the meaning set forth in Section 10.07(a).

          “Telco Restricted Clients” means clients or potential clients that (i) have their
headquarters in Europe, Brazil or the Middle East and (ii) conduct substantially all of their
activities in the telecommunications, media, or utilities industries (including without limitation,
fixed-line or wire-line operators, wireless operators, mobile operators, telecom or media
providers, hosting operators, portals, 3G or WiMax, TV or cable operators or producers, utility
companies (including without limitation gas, electric, nuclear, water or combined utilities) or
telecommunications, media or utilities equipment manufacturers or vendors whose primary products
are specific to the telecommunications, media, or utilities industries, including without
limitation handset manufacturers). Notwithstanding the forgoing, (i) Telco Restricted Clients
shall not mean or include AXA France (including its Affiliates) or SWIFT (aka Society for Worldwide
Interbank Financial Telecommunications) (including its Affiliates) and (ii) for clients or
potential clients that have their headquarters in the United Kingdom or Ireland, Telco Restricted
Clients shall mean and include only those that conduct substantially all of their activities in the
telecommunications industry (including without limitation, fixed-line or wire-line operators,
wireless operators, mobile operators, 3G or WiMax, or telecommunications equipment manufacturers or
vendors whose primary products are specific to the telecommunications industry, including without
limitation handset manufacturers).

          “Third Party Claims” means any action, lawsuit, proceeding, investigation, hearing, or
like matter which is asserted or overtly threatened by a Person other than the parties hereto,
their successors and permitted assigns, against any Indemnified Party or to which any Indemnified
Party is subject.

          “Trademark Assignment” has the meaning set forth in Section 1.05(b).

          “Trademarks” has the meaning set forth in Section 1.05(b).

          “Transition Employees” has the meaning set forth in Section 1.05(c).

          “Transition Period” has the meaning set forth in Section 1.05(c).

          “UK Comfort Letter” has the meaning set forth in Section 1.05(a).

          “UK Employees” has the meaning set forth in Section 1.05(a).

          “UK Employment Claims” means any claims or demands made by any UK Employee against
Seller and/or Buyer for failure to inform and consult in accordance with the Transfer of
Undertakings (Protection of Employment) Regulations 2006..

40

 

          “Uncollected Receivables” has the meaning set forth in Section 10.11.

          “WCA Escrow Amount” has the meaning set forth in Section 1.04(b).

          “Working Capital Amount” means, as of the Effective Time, the aggregate value of the
Working Capital Assets of the Companies minus the aggregate value of the Working Capital
Liabilities of the Companies on the Revised Schedule, determined in accordance with U.S. GAAP,
consistently applied and consistent with past practices. The net intercompany receivables or
payables position of the Companies and its Affiliates as of the Effective Time should be zero.
However, if the net intercompany position as of the Effective Time is a receivable amount, the
Working Capital Amount shall be reduced by the net intercompany receivable amount. If the net
intercompany position as of the Effective Time is a payable amount, the Working Capital Amount
shall be increased by the net intercompany payable amount. This settlement of the net intercompany
position as an adjustment to the Working Capital Amount shall satisfy the underlying intercompany
obligations of Seller, the Companies and their Affiliates as of the Effective Time. For purposes
of calculating the Working Capital Amount, the foreign exchange conversion rate shall be fixed as
between the relevant foreign currency and the US dollar at the final closing spot rate as quoted in
the Financial Times for July 31, 2006 (as published on the following business day).

          “Working Capital Assets” means, with respect to the Companies, all cash, all accounts
receivable (excluding allowance for doubtful accounts and intercompany receivables), all prepaid
and other current assets, all VAT receivable, and all prepaid income tax assets (including deferred
tax asset, net of valuation allowance). Working Capital Assets may include receivables for revenue
which was not recognized for U.S. GAAP purposes due to a lack of persuasive evidence as of the
Effective Time.

          “Working Capital Liabilities” means, with respect to the Companies, all accounts
payable (excluding intercompany payables), all interest payable, all accruals (including any
accruals for restructuring taken in the second quarter of FY2003 ending September 30, 2002 and the
second quarter of FY2006 ending September 30, 2005 other than those that relate to the Munich and
Dusseldorf office leases), all accrued income taxes, all accrued other taxes, all social security
payable, all VAT payable, deferred revenue, debt: short term and debt: long term; provided,
however, that any liabilities related to the Spanish Tax Claims or Section 10.08 shall
not be included for purposes of determining the Working Capital Liabilities.

ARTICLE XII

MISCELLANEOUS

          12.01 Press Releases and Communications. No press release or public announcement
related to this Agreement or the transactions contemplated herein, or prior to the Closing any
other announcement or communication to the employees, customers or suppliers of the Companies,
shall be issued or made without the joint approval of Buyer and Seller, unless required by law (in
the reasonable opinion of counsel) in which case Buyer and Seller shall have the right to review
such press release or announcement prior to publication.

          12.02 Expenses. Except as otherwise expressly provided herein (including but not
limited to Section 10.05(c)), Seller, Parent, and Buyer shall pay all of their own, and
Seller shall pay all of the Companies’ (up to and including the Closing Date), expenses (including
attorneys’ and accountants’ fees and expenses) in connection with the negotiation of this

41

 

Agreement, the performance of their respective obligations hereunder and the consummation of
the transactions contemplated by this Agreement (whether consummated or not).

          12.03 Notices. All notices, demands and other communications to be given or delivered
under or by reason of the provisions of this Agreement shall be in writing and shall be deemed to
have been given when personally delivered, delivered by Federal Express or similar overnight
courier service or mailed by first class mail, return receipt requested. Notices, demands and
communications to Buyer, the Companies, Parent and Seller shall, unless another address is
specified in writing, be sent to the address indicated below:

Notices to Buyer:

Mercer Management Consulting, Inc.

1166 Avenue of the Americas

New York, New York 10036

Attn: Chief Financial Officer

with a copy to:

Marsh & McLennan Companies, Inc.

1166 Avenue of the Americas

New York, New York 10036

Attn: General Counsel — Mercer Specialty Consulting

Notices to Seller, Parent or the Companies:

c/o DiamondCluster International Inc.

875 North Michigan Avenue

Suite 3000

Chicago, Illinois 60611

Attn: Chief Financial Officer

with a copy to:

DiamondCluster International Inc.

875 North Michigan Avenue

Suite 3000

Chicago, Illinois 60611

Attn: General Counsel

          12.04 Assignment. This Agreement and all of the provisions hereof shall be binding
upon and inure to the benefit of the parties hereto and their respective successors and permitted
assigns, except that neither this Agreement nor any of the rights, interests or obligations
hereunder may be assigned or delegated (by operation of law or otherwise) by either

42

 

party hereto without the prior written consent of the other party hereto, which, in the case
of an assignment or delegation by Buyer to one of its Affiliates, shall not be unreasonably
withheld. Seller hereby consents to Buyer’s assignment of the right to purchase the Shares
hereunder to the Affiliates of Buyer set forth on Schedule 12.04.

          12.05 Severability. Whenever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Agreement is held to be prohibited by or invalid under applicable law, such provision shall
be ineffective only to the extent of such prohibition or invalidity, without invalidating the
remainder of such provision or the remaining provisions of this Agreement.

          12.06 No Strict Construction. The Parties have participated jointly in the
negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or
interpretation arises, this Agreement shall be construed as if drafted jointly by the parties
hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any of the provisions of this Agreement.

          12.07 Amendment and Waiver. Any provision of this Agreement or the Schedules or
Exhibits hereto may be amended or waived only in writing signed by Buyer and Seller. No waiver of
any provision hereunder or any breach or default thereof shall extend to or affect in any way other
provision or prior to subsequent breach or default.

          12.08 Complete Agreement. This Agreement and the documents referred to herein
(including the Confidentiality Agreement) contain the complete agreement between the parties hereto
and supersede any prior understandings, agreements or representations by or between the parties,
written or oral, which may have related to the subject matter hereof in any way.

          12.09 Counterparts. This Agreement may be executed in multiple counterparts, any one
of which need not contain the signatures of more than one party, but all such counterparts taken
together shall constitute one and the same instrument.

          12.10 Governing Law. All matters relating to the interpretation, construction,
validity and enforcement of this Agreement shall be governed by and construed in accordance with
the domestic laws of the State of Delaware, USA without giving effect to any choice or conflict of
law provision or rule (whether of the State of Delaware or any other jurisdiction) which would
cause the application of laws of any jurisdiction other than the State of Delaware.

* * * *

43

 

          IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first
above written.

DIAMONDCLUSTER INTERNATIONAL B.V.

By: /s/ William McClayton                    

Name: William McClayton

Title: Director A

By: /s/ Alberto Pamias Romero by William McClayton under POA     

Name: Alberto Pamias Romero

Title: Director B

MERCER MANAGEMENT CONSULTING, INC.

By: /s/ Joseph B. Rotberg                    

Name: Joseph B. Rotberg

Title: Chief Financial Officer

 

 

ANNEX 1

     1. DiamondCluster International Ltda [Brazil]

     2. DiamondCluster International SARL [France]

     3. DiamondCluster International Management Beratung GmbH [Germany]

     4. DiamondCluster International S.L. Sociedad Unipersonal [Spain]

     5. DiamondCluster International FZ LLC [Dubai, UAE]

	 	 	 	 	 	 	 	 	 
	Subsidiary	 	Authorized Equity	 	Issued Equity	 	Owner 1	 	Owner 2
	 
	1
	 	7,176,100 BRL	 	 	 	 	 	 
	 
	 	(71,761 shares, 100	 	 	 	 	 	 
	 
	 	BRL nominal value each)	 	6,706,314.68 BRL	 	Seller - 99.98%	 	#4 - 0.02%
	 
	 	 	 	 	 	 	 	 
	2
	 	2,537,600€ (317,200	 	 	 	 	 	 
	 
	 	shares, 8€ nominal	 	 	 	 	 	 
	 
	 	value each)	 	2,537,600€	 	Seller - 100%	 	 
	 
	 	 	 	 	 	 	 	 
	3
	 	25,000€ (1 share,	 	 	 	 	 	 
	 
	 	1€ nominal value	 	 	 	 	 	 
	 
	 	each)	 	25,000€	 	Seller - 100%	 	 
	 
	 	 	 	 	 	 	 	 
	4
	 	1,750,000€ (250,000	 	 	 	 	 	 
	 
	 	shares, 7€ nominal	 	 	 	 	 	 
	 
	 	value each)	 	1,750,000€	 	Seller - 100%	 	 
	 
	 	 	 	 	 	 	 	 
	5
	 	1,500,000 AED	 	 	 	 	 	 
	 
	 	(1,500 shares,	 	 	 	 	 	 
	 
	 	1,000 AED nominal	 	 	 	 	 	 
	 
	 	value each )	 	1,500,000 AED	 	#4 - 100%	 	 

 

 

ANNEX 2

GUARANTY OF PAYMENT AND PERFORMANCE

     In consideration of the execution by Buyer and Seller of the foregoing Stock Purchase
Agreement between Seller and Buyer (the “Agreement”), the undersigned does hereby absolutely,
irrevocably and unconditionally guarantee to Buyer full and prompt payment and performance of all
of the obligations and agreements of Seller as set forth in the Agreement and in the other
documents executed by Seller in connection therewith, subject in each case to the limitations set
forth therein and at law (which obligations, subject to such limitations, are referred to herein as
the “Obligations”), in each case as if the Obligations were direct and primary obligations of the
undersigned, and to pay to Buyer, when due or upon demand thereafter, any amounts then owing by
Seller to Buyer in respect of the Obligations in the event that Seller fails to make such payment.
The guaranty evidenced hereby is a guaranty of payment and performance and not a guaranty of
collection. This guaranty shall be effective regardless of the solvency or insolvency of Seller or
the undersigned, the extension or modification of the indebtedness of Seller or the undersigned or
the reincorporation, reorganization, merger, or consolidation of Seller or the undersigned or any
change in the composition of, nature, personnel or location of Seller or the undersigned.

     The undersigned hereby waives diligence, presentment, demand for payment, filing of claims
with a court in the event of receivership or bankruptcy of Seller or protest or notice with respect
to the Obligations, and all demands whatsoever, and the undersigned shall not require that the same
be made on Seller as a condition precedent to the undersigned’s obligations hereunder. The
undersigned covenants that this Guaranty will not be discharged except by complete payment and
performance of the Obligations.

     The undersigned represents and warrants to Buyer that: (a) it is a corporation duly organized,
validly existing and in good standing under the laws of Delaware, with full corporate power and
authority to enter into this Guaranty and perform its obligations hereunder; (b) the execution,
delivery and performance of this Guaranty have been duly and validly authorized by all requisite
corporate action, and no other corporate proceedings on its part are necessary to authorize the
execution, delivery or performance of this Guaranty; (c) assuming that the Agreement is a valid and
binding obligation of Buyer and Seller, this Guaranty constitutes a valid and binding obligation of
Parent, enforceable in accordance with its terms; and (d) it is not subject to or obligated under
its certificate of incorporation, its bylaws, any applicable law, or rule or regulation of any
governmental authority, or any material agreement or instrument, or any license, franchise or
permit, or subject to any order, writ, injunction or decree, which would be breached or violated in
any respect by the undersigned’s execution, delivery or performance of this Guaranty.

     This Guaranty shall be binding upon the undersigned and upon the successors and assigns of the
undersigned and shall inure to the benefit of Buyer, its Affiliates, successors, legal
representatives and permitted assigns. All references to the singular shall be deemed to include
the plural where the context so requires. Nothing in this Guaranty, express or implied, is
intended to confer on any Person other than the undersigned and the parties to the Agreement, and
their respective Affiliates, and their respective successors, legal representatives and permitted
assigns, any rights, remedies, obligations or liabilities under or by reason of this Guaranty.

     This Guaranty has been executed and delivered in and shall be deemed to have been made in New
York, New York, and shall be governed by Sections 10.04 and 12.10 of the Agreement. This Guaranty
shall continue until all of the terms, covenants and conditions of the Agreement have been fully
performed by Seller, but shall then terminate. The principal office of the undersigned is located
at 875 North Michigan Avenue, Suite 3000, Chicago, Illinois 60611. Unless otherwise specifically
defined herein, each term used herein that is defined in the Agreement has the meaning assigned to
such term in the Agreement.

	 	 	 	 	 	 	 
	Dated:____ July 31___, 2006	 	DiamondCluster International, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Adam J. Gutstein	 	 
	 

	 	Name:
	 	 

Adam J. Gutstein
	 	 
	 

	 	Its:
	 	Chief Executive Officerexv10w2

 

EXHIBIT
10.2

DIAMOND MANAGEMENT & TECHNOLOGY CONSULTANTS, INC.

AMENDED AND RESTATED

1998 EQUITY INCENTIVE PLAN

     1. Purpose. The Diamond Management & Technology Consultants, Inc. 1998 Equity
Incentive Plan (the “Plan”) is intended to promote the long-term success of Diamond Management &
Technology Consultants, Inc. (the “Company”) and its stockholders by strengthening the Company’s
ability to attract and retain highly competent executives and other selected employees and to
provide a means to encourage stock ownership and proprietary interest in the Company.

     2. Term. The Plan shall become effective upon the date (the “Effective Date”) it is
approved by the Board of Directors of the Company (the “Board”), subject to its ratification and
approval by the affirmative vote of the holders of a majority of the securities of the Company
present or represented, and entitled to vote at a meeting of stockholders of the Company, and shall
terminate at the close of business on the tenth anniversary of the Effective Date unless terminated
earlier under Section 14. Certain awards made with the approval of the Company’s Worldwide
Operating Committee in March and April 1998 prior to the Effective Date were intended to be
pursuant to the Plan and are therefore included under the Plan. After termination of the Plan, no
future awards may be granted, but previously granted awards shall remain outstanding in accordance
with their applicable terms and conditions and the terms and conditions of the Plan.

     3. Plan Administration. The Company’s Management Committee, as constituted from time
to time, or any other committee appointed by the Board (the “Committee”) shall be responsible for
administering the Plan. Except as otherwise provided in the Plan, the Committee shall have full
and exclusive power to interpret the Plan and to adopt such rules, regulations and guidelines for
carrying out the Plan as it may deem necessary or proper, and such power shall be executed in the
best interests of the Company and in keeping with the objectives of the Plan. The interpretation
and construction of any provision of the Plan or any option or right granted hereunder and all
determinations by the Committee in each case shall be final, binding and conclusive with respect to
all interested parties.

     4. Eligibility. Any employee of the Company shall be eligible to receive one or more
awards under the Plan. Directors of the Company who are not employed by the Company will be
considered “employees” eligible to receive awards under the Plan. Consultants of the Company
qualifying as “employees” within the meaning of Form S-8 under the Securities Act of 1933, as
amended (the “Securities Act”), shall also be eligible to receive awards under the Plan. “Company”
includes any entity that is directly or indirectly controlled by the Company or any entity in which
the Company has a significant equity interest, as determined by the Committee.

 

 

     5. Shares of Common Stock Subject to the Plan. Subject to the provisions of Section 6
of the Plan, the aggregate number of shares of Common Stock, $0.001 par value, of the Company
(“Stock”) which may be transferred to participants under the Plan shall be:

     (i) 28,000,000 shares; plus

     (ii) any shares that are represented by awards or portions of awards under the Diamond
Management & Technology Consultants, Inc. 1994 Stock Option Plan, as amended (the “Prior
Plan”) that are forfeited, expired, cancelled or settled without the issuance of shares;
plus

     (iii) any shares that are represented by options or portions of options not awarded
under the Prior Plan but included in clause (i) of Section 3 of the Prior Plan that are
forfeited, expired, cancelled or settled without the issuance of shares; plus

     (iv) any shares issued and included in clause (i) of Section 3 of the Prior Plan that
are repurchased by the Company.

     The aggregate number of shares of Stock that may be covered by awards granted to any single
individual under the Plan shall not exceed 250,000 shares per fiscal year of the Company. The
aggregate number of shares of Stock that may be granted in the form of incentive stock options
(“ISOs”) intended to comply with Section 422 of the Internal Revenue Code of 1986, as amended (the
“Code”) shall be 28,000,000 shares.

     Shares subject to awards under the Plan which expire, terminate, or are canceled prior to
exercise or, in the case of awards granted under Section 8.3, do not vest, shall thereafter be
available for the granting of other awards. Shares which have been exchanged by a participant as
full or partial payment to the Company in connection with any award under the Plan also shall
thereafter be available for the granting of other awards. In instances where a stock appreciation
right (“SAR”) or other award is settled in cash, the shares covered by such award shall remain
available for issuance under the Plan. Likewise, the payment of cash dividends and dividend
equivalents paid in cash in conjunction with outstanding awards shall not be counted against the
shares available for issuance. Any shares that are issued by the Company, and any awards that are
granted through the assumption of, or in substitution for, outstanding awards previously granted by
an acquired entity shall not be counted against the shares available for issuance under the Plan.

     Any shares of Stock issued under the Plan may consist in whole or in part of authorized and
unissued shares or of treasury shares, and no fractional shares shall be issued under the Plan.
Cash may be paid in lieu of any fractional shares in settlements of awards under the Plan.

     6. Adjustments. In the event of any stock dividend, stock split, combination or
exchange of shares, merger, consolidation, spin-off, recapitalization or other distribution (other
than normal cash dividends) of Company assets to stockholders, or any other change affecting shares
of Stock or share price, such proportionate adjustments, if any, as the Committee in its

 

 

discretion
may deem appropriate to reflect such change shall be made with respect to (1) the
aggregate number of shares of Stock that may be issued under the Plan; (2) each outstanding award
made under the Plan; and (3) the exercise price per share for any outstanding stock options, SARs
or similar awards under the Plan.

     7. Fair Market Value. “Fair Market Value,” for all purposes of the Plan, shall mean
the average of the closing price of a share of Stock on the NASDAQ Global Market System for the ten
trading days immediately preceding the date of grant.

     8. Awards. Except as otherwise provided in this Section 8, the Committee shall
determine the type or types of award(s) to be made to each participant and the number of shares of
Stock subject to each such award, and any other terms, conditions and limitations applicable to
such award. Awards may be granted singly, in combination or in tandem. Awards also may be made in
combination or in tandem with, in replacement of, as alternatives to or as the payment form for
grants or rights under any other compensation plan or individual contract or agreement of the
Company including those of any acquired entity. The types of awards that may be granted under the
Plan are:

     8.1 Stock Options. A stock option is a right to purchase a specified number of
            shares of Stock during a specified period. The purchase price per share for each stock
option shall be not less than 100% of Fair Market Value on the date of grant, except if a
stock option is granted retroactively in tandem with or as a substitution for a SAR, the
exercise price may be no lower than the Fair Market Value of a share as set forth in award
agreements for such tandem or replaced SAR. A stock option may be in the form of an ISO
which complies with Section 422 of the Code. The price at which shares may be purchased
under a stock option shall be paid in full by the optionee at the time of the exercise in
cash or such other method permitted by the Committee, including (1) tendering shares; (2)
authorizing a third party to sell the shares (or a sufficient portion thereof) acquired upon
exercise of a stock option and assigning the delivery to the Company of a sufficient amount
of the sale proceeds to pay for all the shares acquired through such exercise; or (3) any
combination of the above.

     8.2 SARs. A SAR is a right to receive a payment, in cash and/or shares, equal
to the excess of the Fair Market Value of a specified number of shares of Stock on the date
the SAR is exercised over the Fair Market Value on the date the SAR was granted as set forth
in the applicable award agreement; except that if a SAR is granted retroactively in tandem
with or in substitution for a stock option, the designated Fair Market Value set forth in
the award agreement shall be no lower than the Fair Market Value of a share for such tandem
or replaced stock option.

     8.3 Stock Awards. A stock award is a grant made or denominated in shares or
units equivalent in value to shares. All or part of any stock award may be subject to
conditions and restrictions as set forth in the applicable award agreement, which may be
based on continuous service with the Company or the achievement of performance goals related
to profits, profit growth, profit-related return ratios, cash flow or total stockholder

 

 

return, where such goals may be stated in absolute terms or relative to comparable
companies.

     9. Dividends and Dividend Equivalents. Any awards under the Plan may earn dividends
or dividend equivalents as set forth in the applicable award agreement. Such dividends or dividend
equivalents may be paid currently or may be credited to a participant’s account. Any crediting of
dividends or dividend equivalents may be subject to such restrictions and conditions may be
established in the applicable award agreement, including reinvestment in additional shares or share
equivalents.

     10. Deferrals and Settlements. Payment of awards may be in the form of cash, stock,
other awards or combinations thereof as shall be determined at the time of grant, and with such
restrictions as may be imposed in the award agreement. The Committee also may require or permit
participants to elect to defer the issuance of shares or the settlement of awards in cash under
such rules and procedures as it may establish under the Plan. It also may provide that deferred
settlements include the payment or crediting of interest on the deferral amounts, or the payment or
crediting of dividend equivalents where the deferral amounts are denominated in shares.

     11. Transferability and Exercisability. Awards granted under the Plan shall not be
transferable or assignable other than (1) by will or the laws of descent and distribution; (2) by
gift or other transfer of an award to any trust or estate in which the original award recipient or
such recipient’s spouse or other immediate relative has a substantial beneficial interest, or to a
spouse or other immediate relative, provided that any such transfer is permitted by Rule 16b-3
under the Securities Exchange Act of 1934, as amended and as in effect when such transfer occurs
and the Board does not rescind this provision prior to such transfer; or (3) pursuant to a domestic
relations order (as defined by the Code). However, any award so transferred shall continue to be
subject to all the terms and conditions contained in the instrument evidencing such award.

     12. Award Agreements. Awards under the Plan shall be evidenced by agreements as
approved by the Committee that set forth the terms, conditions and limitations for each award,
which may include the term of an award (except that in no event shall the term of any ISO exceed a
period of ten years from the date of its grant), the provisions applicable in the event the
participant’s employment terminates, and the Committee’s authority to amend, modify, suspend,
cancel or rescind any award. The Committee need not require the execution of any such agreement,
in which case acceptance of the award by the participant shall constitute agreement to the terms of
the award.

     13. Acceleration and Settlement of Awards. The Committee shall have the discretion,
exercisable at any time before a sale, merger, consolidation, reorganization, liquidation or change
of control of the Company, as defined by the Committee, to provide for the acceleration of vesting
and for settlement, including cash payment of an award granted under the Plan, upon or immediately
before the effectiveness of such event. However, the granting of awards under the Plan shall in no
way affect the right of the Company to adjust, reclassify, reorganize or otherwise

 

 

change its capital or business structure, or to merge, consolidate, dissolve, liquidate, sell or
transfer all or any portion of its businesses or assets.

     14. Plan Amendment. The Plan may be amended by the Committee as it deems necessary or
appropriate to better achieve the purposes of the Plan, except that no such amendment shall be made
without the approval of the Company’s stockholders which would increase the number of shares
available for issuance in accordance with Sections 5 and 6 of the Plan. The Board may suspend the
Plan or terminate the Plan at any time; provided, that no such action shall adversely affect any
outstanding benefit. Any shares authorized under Section 5 (or any amendment thereof) with respect
to which no Award is granted prior to termination of the Plan, or with respect to which an Award is
terminated, forfeited or canceled after termination of the Plan, shall automatically be transferred
to any subsequent stock incentive plan or similar plan for employees of the Company.

     15. Tax Withholding. The Company shall have the right to deduct from any settlement
of an award made under the Plan, including the delivery or vesting of shares, a sufficient amount
to cover withholding of any federal, state or local taxes required by law, or to take such other
action as may be necessary to satisfy any such withholding obligations. The Committee may, in its
discretion and subject to such rules as it may adopt, permit participants to use shares to satisfy
required tax withholding and such shares shall be valued at the Fair Market Value as of the
settlement date of the applicable award.

     16. Registration of Shares. Notwithstanding any other provision of the Plan, the
Company shall not be obligated to offer or sell any shares unless such shares are at that time
effectively registered or exempt from registration under the Securities Act and the offer and sale
of such shares are otherwise in compliance with all applicable federal and state securities laws
and the requirements of any stock exchange or similar agency on which the Company’s securities may
then be listed or quoted. The Company shall have no obligation to register the shares under the
federal securities laws or take any other steps as may be necessary to enable the shares to be
offered and sold under federal or other securities laws. Prior to receiving shares a Plan
participant may be required to furnish representations or undertakings deemed appropriate by the
Company to enable the offer and sale of the shares or subsequent transfers of any interest in such
shares to comply with the Securities Act and other applicable securities laws. Certificates
evidencing shares shall bear any legend required by, or useful for the purposes of compliance with,
applicable securities laws, this Plan or award agreements.

     17. Other Benefit and Compensation Programs. Unless otherwise specifically determined
by the Committee, settlements of awards received by participants under the Plan shall not be deemed
a part of a participant’s regular, recurring compensation for purposes of calculating payments or
benefits from any Company benefit plan or severance program. Further, the Company may adopt other
compensation programs, plans or arrangements as it deems appropriate or necessary.

     18. Unfunded Plan. Unless otherwise determined by the Committee, the Plan shall be
unfunded and shall not create (or be construed to create) a trust or a separate fund or funds. The

 

 

Plan shall not establish any fiduciary relationship between the Company and any participant or
other person. To the extent any person holds any rights by virtue of an award granted under the
Plan, such rights shall be no greater than the rights of an unsecured general creditor of the
Company.

     19. Use of Proceeds. The cash proceeds received by the Company from the issuance of
shares pursuant to awards under the Plan shall constitute general funds of the Company.

     20. Regulatory Approvals. The implementation of the Plan, the granting of any award
under the Plan, and the issuance of shares upon the exercise or settlement of any award shall be
subject to the Company’s procurement of all approvals and permits required by regulatory
authorities having jurisdiction over the Plan, the awards granted under it or the shares issued
pursuant to it.

     21. Employment Rights. The Plan does not constitute a contract of employment and
participation in the Plan will not give a participant the right to continue in the employ of the
Company on a full-time, part-time or any other basis. Participation in the Plan will not give any
participant any right or claim to any benefit under the Plan, unless such right or claim has
specifically accrued under the terms of the Plan.

     22. Governing Law. The validity, construction and effect of the Plan and any actions
taken or relating to the Plan shall be determined in accordance with the laws of the State of
Illinois and applicable federal law.

     23. Successors and Assigns. The Plan shall be binding on all successors and assigns
of a participant, including, without limitation, the estate of such participant and the executor,
administrator or trustee of such estate, or any receiver or trustee in bankruptcy or representative
of the participant’s creditors.

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