Document:

EXHIBIT 10.04

STOCK PURCHASE AGREEMENT

 

This Stock Purchase Agreement (this “Agreement”) is

made and entered into as of the 7th day of June 2002, by and between Zamba

Corporation, a Delaware corporation (the “Company”), and Doll Technology

Affiliates Fund, L.P. (the “Purchaser”).

 

WHEREAS, the Company owns shares of Series A preferred

stock, $.0001 par value per share (“Zamba’s NextNet Stock”) of NextNet

Wireless, Inc., a Delaware corporation (“NextNet”); and

 

WHEREAS, an individual designated by the Purchaser is

a member of the Company’s Board of Directors and of NextNet’s Board of

Directors, and therefore is thoroughly familiar with the Company’s and

NextNet’s business, financial condition and prospects; and

 

WHEREAS, the Purchaser desires to purchase from the

Company and the Company desires to sell to the Purchaser certain of its shares

of Zamba’s NextNet Stock; and

 

WHEREAS, the Purchaser acknowledges that there is no

established trading market or other current valuation for Zamba’s NextNet Stock

or the Shares to be issued hereunder;

 

NOW, THEREFORE, in consideration of the premises and

other good and valuable consideration, the receipt and adequacy of which are

hereby acknowledged, the parties agree as follows:

 

1.             Purchase and Sale

of Preferred Stock.  In

consideration of this Agreement, the Company hereby agrees to sell to the

Purchaser, and the Purchaser hereby agrees to purchase from the Company, the

Shares in accordance with the following terms:

 

(a)           The Company hereby sells to the

Purchaser, and the Purchaser hereby purchases from the Company, 1,341 shares of

Zamba’s NextNet Stock (the “Shares”), at a purchase price of $6.00 per share,

for an aggregate purchase price of $8,046. 

Promptly upon execution of this Agreement, the Purchaser shall pay the

full amount of the purchase price to the Company by wire transfer in

immediately available funds to an account designated in writing by the Company.

 

(b)           Promptly upon receipt of the purchase

price, the Company shall present the transaction to the independent members of

the Company’s Board of Directors for the approval or disapproval of the Board

of Directors.  If the Company’s Board of

Directors disapproves the transaction, the full purchase price shall be

promptly refunded to the Purchaser.  If

the Company’s Board of Directors approves the transaction, the Company shall,

within five business days of such approval, deliver to NextNet a notice

pursuant to the Right of First Offer set forth in Section 1.1 of the Right of

First Refusal Agreement

 

 

(the “Refusal

Agreement”) dated September 21, 1998 by and among the Company, NextNet, and the

holders of the Series B Preferred Stock of NextNet.

 

(c)           If NextNet elects to exercise its

right of first refusal pursuant to Section 1(b) above, the Purchase Price shall

be refunded to the Purchaser within five business days of the Company’s receipt

of full payment from NextNet for the Shares, and the Purchaser shall not

receive any of the Shares.  If NextNet

declines to exercise its right of first refusal, the Company shall, within five

business days after the Company’s receipt of NextNet’s notice to decline its

right, notify each investor in NextNet eligible under the Refusal Agreement of

its opportunity to exercise its pro rata right of first refusal pursuant to the

Refusal Agreement.

 

(d)           If any of the eligible investors in

NextNet  elects to exercise its pro rata

right of first refusal pursuant to Section 1(c) above, the Company will forward

to the Purchaser the payments the Company receives from such investor(s) within

five business days of the Company’s receipt of such payment, and the number of

Shares that the Purchaser will receive pursuant to this Agreement shall be

reduced on a pro rata basis.  Within ten

business days after the expiration of the investor refusal period, the Company

shall deliver to the Purchaser a certificate registered in the Purchaser’s name

representing the number of Shares purchased.

 

2.             Representations

and Warranties of the Purchaser.  As

a material inducement for the Company’s issuance and sale of the Shares, the

Purchaser represents, warrants, covenants and acknowledges to the Company that:

 

(a)           The Purchaser understands that the

issuance of the Shares have not been registered under the Securities Act of

1933, as amended (the “Securities Act”), or applicable state securities

laws.  Instead, the Company is issuing

the Shares pursuant to exemptions from such laws and in doing so is and would

be relying on, among other things, the Purchaser’s representations, warranties,

covenants and acknowledgements contained herein.

 

(b)           The Purchaser qualifies as an

“accredited investor” as such term is defined in Rule 501(a) of Regulation D

under the Securities Act, and as further represented in Section 3 of this

Agreement.

 

(c)           The Purchaser has sufficient knowledge

and experience in financial and business matters that the Purchaser is capable

of evaluating the merits and risks of investing in the Shares.

 

(d)           The Purchaser has been provided with

or given access to such additional information as the Purchaser has requested

from the Company (including the opportunity to meet with Company officers and

to review all the documents that Purchaser may have requested) and has utilized

such information to his satisfaction for the purpose of obtaining in addition

to, or verifying the accuracy of the information provided, regarding the

Company’s and NextNet’s business, financial condition and prospects.

 

2

 

(e)           The Purchaser understands that the

purchase of the Shares is a highly speculative investment and involves a high

degree of risk.  The Purchaser believes

that the investment in the Shares is suitable based upon the Purchaser’s

investment objectives and financial needs and the Purchaser has adequate means

of providing for current financial needs and personal contingencies, has no

need for liquidity of investment with respect to the Shares and can afford a

complete loss of such investment.

 

(f)            The Purchaser is acquiring the

Shares for his own account, for investment purposes only, and without the

intention of reselling or redistributing the Shares.

 

(g)           The Purchaser is aware that, in the

view of the Securities and Exchange Commission, a purchase of the Shares with

an intent to resell by reason of any foreseeable specific contingency or

anticipated change in market values, or any change in NextNet’s condition, or

in connection with a contemplated liquidation or settlement of any loan

obtained for the acquisition of the Shares and for which the Shares were

pledged, would constitute an intent inconsistent with the foregoing

representation.

 

(h)           If, contrary to the Purchaser’s

foregoing intentions, it should later desire to dispose of or transfer any of

the Shares in any manner, the undersigned shall not do so without (i) if

reasonably requested by NextNet, first obtaining an opinion of counsel

reasonably satisfactory to NextNet that such proposed disposition or transfer

may lawfully be made without registration pursuant to the Securities Act and

applicable state securities laws (it hereby being acknowledged that NextNet

will not require such an opinion for transactions made pursuant to Rule 144

except in unusual circumstances) or (ii) registering the resale of the

Shares under the Securities Act and applicable state securities laws.

Notwithstanding the provisions of this subsection (h), no such registration or

opinion of counsel shall be necessary for a transfer by Purchaser to any

limited partner or affiliated entities, if (X) the Purchaser certifies in

writing to NextNet that the Purchaser is not receiving any consideration in

connection with the transfer and (Y) the prospective transferee agrees in all

such instances in writing to be subject to the terms hereof to the same extent

as if he or she were an original Purchaser hereunder.

 

(i)            Neither the Company nor NextNet has

any obligation to register the Shares for resale under the Securities Act or

any applicable state securities laws, or to take any other action which would

facilitate the availability of federal or state registration exemptions in

connection with any resale of the Shares. 

Accordingly, the Purchaser may be prohibited by law from selling or

otherwise transferring or disposing of the Shares and may have to bear the

economic risk of his investment in NextNet for an indefinite period.

 

(j)            The Purchaser, if other than an

individual, represents that (a) the Purchaser was not organized for the

specific purpose of acquiring the Shares; and (b) this Agreement has been duly

authorized by all necessary action on the part of the Purchaser, has been duly

executed by an authorized officer or representative of the Purchaser, and is a

legal, valid, and binding obligation of the Purchaser enforceable in accordance

with its terms.

 

3

 

(k)           There is no investment banker,

broker, finder or other intermediary which has been retained by or is

authorized to act on behalf of Purchaser who might be entitled to any fee or

commission from the Company upon consummation of the transactions contemplated

by this Agreement.

 

(l)            The Purchaser agrees to be bound by

the transfer restrictions described in Section 3.6 of the Series A Preferred

Stock Purchase Agreement dated as of September 21, 1998 between the Company and

NextNet.

 

(m)          Purchaser acknowledges that the

provisions of the Right of First Refusal Agreement dated as of September 21,

1998 among the Zamba, NextNet and the Series B Purchasers identified therein

shall continue to apply to the Shares in the hands of the Purchaser.  

 

3.             Accredited

Investor Status.  The Purchaser is

an “accredited investor” as defined in Rule 501(a) of 

Regulation D of the

Securities Act, because the Purchaser meets at least one of the following

criteria (please check one):

 

o            The Purchaser is a

natural person whose individual net worth, or joint net worth with his or her

spouse, exceeds $1,000,000 at the time of the Purchaser’s purchase; or

 

o            The Purchaser is a

natural person who had an individual income in excess of $200,000 in each of

the two most recent years or joint income with the Purchaser’s spouse in excess

of $300,000 in each of those years and who reasonably expects to reach the same

income level in the current year; or

 

o            The Purchaser is

either (i) a bank as defined in Section 3(a)(2) of the Securities Act, or any

savings and loan association or other institution as defined in Section

3(a)(5)(A) of the Securities Act whether acting in its individual or fiduciary

capacity, any broker or dealer registered pursuant to Section 15 of the

Securities Exchange Act of 1934, (ii) an insurance company as defined in

Section 2(13) of the Securities Act, (iii) an investment company registered

under the Investment Company Act of 1940 or a business development company as

defined in Section 2(a)(48) of such Act, (iv) a Small Business Investment

Company licensed by the U.S. Small Business Administration under Section 301(c)

or (d) of the Small Business Investment Act of 1958, or (v) an employee benefit

plan within the meaning of Title I of the Employee Retirement Income Security

Act of 1974, if the investment decision is made by a plan fiduciary, as defined

in Section 3(21) of such Act, which plan fiduciary is either a bank, savings

and loan association, insurance company or registered investment adviser, or if

the employee benefit plan has total assets in excess of $5,000,000 or, if a

self directed plan, with investment decisions made solely by persons who are

accredited investors; or

 

o            The Purchaser is a private business

development company as defined in Section 202(a)(22) of the Investment Advisers

Act of 1940; or

 

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o            The Purchaser is an organization described

in Section 501(c)(3) of the Internal Revenue Code, a corporation, Massachusetts

or similar business trust, or partnership, not formed for the specific purpose

of acquiring the Shares, with total assets in excess of $5,000,000; or

 

o            The Purchaser is a director or executive

officer of the Company; or

 

o            The Purchaser is a trust, with total assets

in excess of $5,000,000, not formed for the specific purpose of acquiring the

Shares, whose purchase is directed by a sophisticated person as described in

Rule 506(b)(2)(ii) of Regulation D of the Securities Act; or

 

ý            The Purchaser is any entity in which all of

the equity owners are accredited investors.

 

4.             Representations

and Warranties of the Company.  As a

material inducement for the Purchaser’s purchase of the Shares, the Company

represents, warrants, covenants and acknowledges to the Purchaser that:

 

(a)           The Company is a corporation duly

organized, validly existing and in good standing under the laws of the State of

Delaware and has the requisite corporate power and authority to own its

properties and to carry on its business as now being conducted and presently

proposed to be conducted.

 

(b)           The Shares are being transferred to

the Purchaser free and clear of any liens, encumbrances or other restrictions,

other than restrictions on transfer that are contained in the Investors Rights

Agreement of NextNet, as it may be amended from time to time, the Voting

Agreement of NextNet, as it may be amended from time to time, or are otherwise

set forth herein or imposed by applicable securities laws.

 

5

 

5.             Merger,

Consolidation or Other Change in Control of the Company or NextNet.

 

(a)           If the Company shall at any time

consolidate with or merge into to another corporation (where the Company is not

the continuing corporation after such merger, consolidation, sale of all or

substantially all of its assets or other change-in-control), or the Company

shall sell, transfer or lease all or substantially all of its assets, then, in

any such case, the Purchaser thereupon (and thereafter) shall continue to be

entitled to be bound by the terms of this Agreement and shall be entitled to

receive the number of Shares determined in accordance with Section 1 above.

 

(b)           If NextNet shall at any time

consolidate with or merge into another corporation (where NextNet is not the

continuing corporation after such merger, consolidation or other

change-in-control), or NextNet shall sell, transfer or lease all or

substantially all of its assets, then, in any such case, the Purchaser

thereupon (and thereafter) shall be entitled to receive the number of Shares

(or the proceeds resulting from the sale of such Shares in connection with such

merger, consolidation, or other change-in-control) determined in accordance

with Section 1 above.

 

6.             Insolvency

or Bankruptcy of the Company or NextNet. 

Upon the insolvency or bankruptcy (whether voluntary or involuntary) of

the Company or NextNet, or the appointment of or taking possession by a

receiver, liquidator, assignee, trustee, custodian, sequestrator (or other

similar official) of the Company or NextNet or any substantial part of the

Company’s or NextNet’s property, or any general assignment for the benefit of

creditors of the Company or NextNet, the Purchaser shall be an unsecured

general creditor of the Company or NextNet, as applicable, and shall not have

any security interest or other rights in connection with this Agreement or the

Shares purchased hereunder.

 

7.             Miscellaneous.

 

(a)           Binding Effect.  This Agreement shall be binding upon and

inure to the benefit of and be enforceable against the parties hereto and their

respective successors and permitted assigns.

 

(b)           Governing Law.  This Agreement shall in all respects be

governed by, and enforced and interpreted in accordance with, the laws of the

State of Minnesota, except with respect to its rules relating to conflicts of

laws.

 

(c)           Legends.  The Shares issued to the Purchaser pursuant

to this Agreement shall contain the following legends:

 

THESE SHARES HAVE NOT BEEN REGISTERED

UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY

STATE AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT

TO AN EFFECTIVE REGISTRATION STATEMENT OR EXEMPTION FROM REGISTRATION UNDER THE

FOREGOING LAWS.  ACCORDINGLY, THESE

 

6

 

SHARES MAY NOT BE SOLD, TRANSFERRED

OR OTHERWISE DISPOSED OF WITHOUT (i) AN OPINION OF COUNSEL SATISFACTORY TO

ZAMBA CORPORATION THAT SUCH SALE, TRANSFER OR OTHER DISPOSITION MAY LAWFULLY BE

MADE WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933 AND APPLICABLE STATE

SECURITIES LAWS OR (ii) SUCH REGISTRATION.

 

THE SHARES EVIDENCED HEREBY ARE SUBJECT TO A VOTING AGREEMENT BY AND AMONG THE COMPANY AND

CERTAIN STOCKHOLDERS OF THE COMPANY (A COPY OF WHICH MAY BE OBTAINED FROM THE

COMPANY), AND BY ACCEPTING ANY INTEREST IN SUCH SHARES THE PERSON ACCEPTING

SUCH INTEREST SHALL BE DEEMED TO AGREE TO AND SHALL BECOME BOUND BY ALL THE

PROVISIONS OF SAID VOTING AGREEMENT.

 

(d)           Notices.  All notices, consents, requests, demands,

instructions or other communications provided for herein shall be in writing

and shall be deemed validly given, made and served when (a) delivered

personally, (b) sent by certified or registered mail, postage prepaid,

(c) sent by reputable overnight delivery service, or (d) sent by

telephonic facsimile transmission, and, pending the designation of another

address, addressed as follows:

 

	

  If to the Company:

  	

  Zamba Corporation

  
	

   

  	

  3033 Excelsior Blvd.,

  Suite 200

  
	

   

  	

  Minneapolis, Minnesota

  55416

  
	

   

  	

  Attn:  Chief Financial Officer

  
	

   

  	

  Fax: (952) 893-3948

  
	

   

  	

   

  
	

  If to the Purchaser:

  	

  Doll Technology

  Affiliates Fund, L.P.

  
	

   

  	

  c/o Doll Capital

  Management

  
	

   

  	

  3000 Sand Hill Road,

  Bldg 3, Suite 225

  
	

   

  	

  Menlo Park, CA 94205

  
	

   

  	

  Fax: (650) 854-9159

  

 

 

(e)           Entire Agreement and Counterparts.  This Agreement evidences the entire

agreement between the Company and the Purchaser relating to the subject matter

hereof and supersedes in all respects any and all prior oral or written

agreements or understandings.  This

Agreement may not be amended or modified, and no provisions hereof may be

waived, except by written instrument signed by both the Company and the

Purchaser.  This Agreement may be

executed in counterparts, each of which shall be deemed an original and all of

which, when taken together, shall constitute one Agreement.

 

7

 

(f)            The Purchaser and the Company

understand the meaning and legal consequences of the agreements,

representations and warranties contained herein.  The Purchaser and the Company agree that such agreements,

representations and warranties shall survive and remain in full force and

effect after the execution hereof and payment for the Shares.

 

(g)           Any controversy or claim arising out

of or relating to this Agreement, the Subscriber’s purchase of Shares or any

breach of this Agreement, shall be settled by arbitration administered by the

American Arbitration Association in accordance with its Securities Arbitration

Rules, and judgment on the award rendered by the Arbitrator(s) may be entered

in any court having jurisdiction thereof.

 

(h)           Headings.  Section headings used in this Agreement have

no legal significance and are used solely for convenience of reference.

 

(i)            Expenses.  Each party shall pay for its own legal,

accounting and other similar expenses incurred in connection with the transaction

contemplated by this Agreement.

 

IN WITNESS

WHEREOF, the Company and the Purchaser have executed this Agreement as of the

date set forth in the first 

paragraph.

 

	

  THE

  COMPANY:

  	

   

  	

  THE

  PURCHASER:

  
	

  ZAMBA

  CORPORATION

  	

   

  	

  DOLL

  TECHNOLOGY AFFILIATES FUND, L.P.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  By:

  	

  /s/ Michael H. Carrel

  	

   

  	

   

  	

  /s/ Dixon R. Doll

  
	

  Name:

  	

  Michael H. Carrel

  	

   

  	

   

  	

  Name: Dixon R. Doll

  
	

  Title:

  	

  CFO

  	

   

  	

   

  	

  Title: Managing Member

  

 

8EXHIBIT

10.05

 

STOCK PURCHASE AGREEMENT

 

This Stock

Purchase Agreement (this “Agreement”) is made and entered into as of the 7th

day of June 2002, by and between Zamba Corporation, a Delaware corporation (the

“Company”), and Doll Technology Side Fund, L.P. (the “Purchaser”).

 

WHEREAS, the

Company owns shares of Series A preferred stock, $.0001 par value per share

(“Zamba’s NextNet Stock”) of NextNet Wireless, Inc., a Delaware corporation

(“NextNet”); and

 

WHEREAS, an

individual designated by the Purchaser is a member of the Company’s Board of

Directors and of NextNet’s Board of Directors, and therefore is thoroughly

familiar with the Company’s and NextNet’s business, financial condition and

prospects; and

 

WHEREAS, the

Purchaser desires to purchase from the Company and the Company desires to sell

to the Purchaser certain of its shares of Zamba’s NextNet Stock; and

 

WHEREAS, the

Purchaser acknowledges that there is no established trading market or other

current valuation for Zamba’s NextNet Stock or the Shares to be issued

hereunder;

 

NOW, THEREFORE, in

consideration of the premises and other good and valuable consideration, the

receipt and adequacy of which are hereby acknowledged, the parties agree as

follows:

 

1.             Purchase and Sale

of Preferred Stock.  In consideration

of this Agreement, the Company hereby agrees to sell to the Purchaser, and the

Purchaser hereby agrees to purchase from the Company, the Shares in accordance

with the following terms:

 

(a)           The Company hereby sells to the

Purchaser, and the Purchaser hereby purchases from the Company, 873 shares of

Zamba’s NextNet Stock (the “Shares”), at a purchase price of $6.00 per share,

for an aggregate purchase price of $5,238. 

Promptly upon execution of this Agreement, the Purchaser shall pay the

full amount of the purchase price to the Company by wire transfer in

immediately available funds to an account designated in writing by the Company.

 

(b)           Promptly upon receipt of the purchase

price, the Company shall present the transaction to the independent members of

the Company’s Board of Directors for the approval or disapproval of the Board

of Directors.  If the Company’s Board of

Directors disapproves the transaction, the full purchase price shall be

promptly refunded to the Purchaser.  If

the Company’s Board of Directors approves the transaction, the Company shall,

within five business days of such approval, deliver to NextNet a notice

pursuant to the Right of First Offer set forth in Section 1.1 of the Right of

First Refusal Agreement 

 

 

(the “Refusal Agreement”)

dated September 21, 1998 by and among the Company, NextNet, and the holders of

the Series B Preferred Stock of NextNet.

 

(c)           If NextNet elects to exercise its

right of first refusal pursuant to Section 1(b) above, the Purchase Price shall

be refunded to the Purchaser within five business days of the Company’s receipt

of full payment from NextNet for the Shares, and the Purchaser shall not

receive any of the Shares.  If NextNet

declines to exercise its right of first refusal, the Company shall, within five

business days after the Company’s receipt of NextNet’s notice to decline its

right, notify each investor in NextNet eligible under the Refusal Agreement of

its opportunity to exercise its pro rata right of first refusal pursuant to the

Refusal Agreement.

 

(d)           If any of the eligible investors in

NextNet  elects to exercise its pro rata

right of first refusal pursuant to Section 1(c) above, the Company will forward

to the Purchaser the payments the Company receives from such investor(s) within

five business days of the Company’s receipt of such payment, and the number of

Shares that the Purchaser will receive pursuant to this Agreement shall be

reduced on a pro rata basis.  Within ten

business days after the expiration of the investor refusal period, the Company

shall deliver to the Purchaser a certificate registered in the Purchaser’s name

representing the number of Shares purchased.

 

2.             Representations

and Warranties of the Purchaser.  As

a material inducement for the Company’s issuance and sale of the Shares, the

Purchaser represents, warrants, covenants and acknowledges to the Company that:

 

(a)           The Purchaser understands that the

issuance of the Shares have not been registered under the Securities Act of

1933, as amended (the “Securities Act”), or applicable state securities

laws.  Instead, the Company is issuing

the Shares pursuant to exemptions from such laws and in doing so is and would

be relying on, among other things, the Purchaser’s representations, warranties,

covenants and acknowledgements contained herein.

 

(b)           The Purchaser qualifies as an

“accredited investor” as such term is defined in Rule 501(a) of Regulation D

under the Securities Act, and as further represented in Section 3 of this

Agreement.

 

(c)           The Purchaser has sufficient

knowledge and experience in financial and business matters that the Purchaser

is capable of evaluating the merits and risks of investing in the Shares.

 

(d)           The Purchaser has been provided with

or given access to such additional information as the Purchaser has requested

from the Company (including the opportunity to meet with Company officers and

to review all the documents that Purchaser may have requested) and has utilized

such information to his satisfaction for the purpose of obtaining in addition

to, or verifying the accuracy of the information provided, regarding the

Company’s and NextNet’s business, financial condition and prospects.

 

2

 

(e)           The Purchaser understands that the

purchase of the Shares is a highly speculative investment and involves a high

degree of risk.  The Purchaser believes

that the investment in the Shares is suitable based upon the Purchaser’s

investment objectives and financial needs and the Purchaser has adequate means

of providing for current financial needs and personal contingencies, has no

need for liquidity of investment with respect to the Shares and can afford a

complete loss of such investment.

 

(f)            The Purchaser is acquiring the

Shares for his own account, for investment purposes only, and without the

intention of reselling or redistributing the Shares.

 

(g)           The Purchaser is aware that, in the

view of the Securities and Exchange Commission, a purchase of the Shares with

an intent to resell by reason of any foreseeable specific contingency or

anticipated change in market values, or any change in NextNet’s condition, or

in connection with a contemplated liquidation or settlement of any loan

obtained for the acquisition of the Shares and for which the Shares were

pledged, would constitute an intent inconsistent with the foregoing

representation.

 

(h)           If, contrary to the Purchaser’s

foregoing intentions, it should later desire to dispose of or transfer any of

the Shares in any manner, the undersigned shall not do so without (i) if reasonably

requested by NextNet, first obtaining an opinion of counsel reasonably

satisfactory to NextNet that such proposed disposition or transfer may lawfully

be made without registration pursuant to the Securities Act and applicable

state securities laws (it hereby being acknowledged that NextNet will not

require such an opinion for transactions made pursuant to Rule 144 except in

unusual circumstances) or (ii) registering the resale of the Shares under

the Securities Act and applicable state securities laws. Notwithstanding the

provisions of this subsection (h), no such registration or opinion of counsel

shall be necessary for a transfer by Purchaser to any limited partner or

affiliated entities, if (X) the Purchaser certifies in writing to NextNet that

the Purchaser is not receiving any consideration in connection with the

transfer and (Y) the prospective transferee agrees in all such instances in

writing to be subject to the terms hereof to the same extent as if he or she

were an original Purchaser hereunder.

 

(i)            Neither the Company nor NextNet has

any obligation to register the Shares for resale under the Securities Act or

any applicable state securities laws, or to take any other action which would

facilitate the availability of federal or state registration exemptions in

connection with any resale of the Shares. 

Accordingly, the Purchaser may be prohibited by law from selling or

otherwise transferring or disposing of the Shares and may have to bear the

economic risk of his investment in NextNet for an indefinite period.

 

(j)            The Purchaser, if other than an

individual, represents that (a) the Purchaser was not organized for the

specific purpose of acquiring the Shares; and (b) this Agreement has been duly

authorized by all necessary action on the part of the Purchaser, has been duly

executed by an authorized officer or representative of the Purchaser, and is a

legal, valid, and binding obligation of the Purchaser enforceable in accordance

with its terms.

 

3

 

(k)           There is no investment banker,

broker, finder or other intermediary which has been retained by or is

authorized to act on behalf of Purchaser who might be entitled to any fee or

commission from the Company upon consummation of the transactions contemplated

by this Agreement.

 

(l)            The Purchaser agrees to be bound by

the transfer restrictions described in Section 3.6 of the Series A Preferred

Stock Purchase Agreement dated as of September 21, 1998 between the Company and

NextNet.

 

(m)          Purchaser acknowledges that the

provisions of the Right of First Refusal Agreement dated as of September 21,

1998 among the Zamba, NextNet and the Series B Purchasers identified therein

shall continue to apply to the Shares in the hands of the Purchaser.  

 

3.             Accredited

Investor Status.  The Purchaser is

an “accredited investor” as defined in Rule 501(a) of Regulation D of the

Securities Act, because the Purchaser meets at least one of the following

criteria (please check one):

 

o            The Purchaser is a natural person whose

individual net worth, or joint net worth with his or her spouse, exceeds

$1,000,000 at the time of the Purchaser’s purchase; or

 

o            The Purchaser is a natural person who had

an individual income in excess of $200,000 in each of the two most recent years

or joint income with the Purchaser’s spouse in excess of $300,000 in each of

those years and who reasonably expects to reach the same income level in the

current year; or

 

o            The Purchaser is either (i) a bank as

defined in Section 3(a)(2) of the Securities Act, or any savings and loan

association or other institution as defined in Section 3(a)(5)(A) of the

Securities Act whether acting in its individual or fiduciary capacity, any

broker or dealer registered pursuant to Section 15 of the Securities Exchange

Act of 1934, (ii) an insurance company as defined in Section 2(13) of the

Securities Act, (iii) an investment company registered under the Investment

Company Act of 1940 or a business development company as defined in Section

2(a)(48) of such Act, (iv) a Small Business Investment Company licensed by the

U.S. Small Business Administration under Section 301(c) or (d) of the Small

Business Investment Act of 1958, or (v) an employee benefit plan within the

meaning of Title I of the Employee Retirement Income Security Act of 1974, if

the investment decision is made by a plan fiduciary, as defined in Section

3(21) of such Act, which plan fiduciary is either a bank, savings and loan

association, insurance company or registered investment adviser, or if the

employee benefit plan has total assets in excess of $5,000,000 or, if a self

directed plan, with investment decisions made solely by persons who are

accredited investors; or

 

o            The Purchaser is a private business

development company as defined in Section 202(a)(22) of the Investment Advisers

Act of 1940; or

 

4

 

o            The Purchaser is an organization described

in Section 501(c)(3) of the Internal Revenue Code, a corporation, Massachusetts

or similar business trust, or partnership, not formed for the specific purpose

of acquiring the Shares, with total assets in excess of $5,000,000; or

 

o            The Purchaser is a director or executive

officer of the Company; or

 

o            The Purchaser is a trust, with total assets

in excess of $5,000,000, not formed for the specific purpose of acquiring the

Shares, whose purchase is directed by a sophisticated person as described in

Rule 506(b)(2)(ii) of Regulation D of the Securities Act; or

 

ý            The Purchaser is any entity in which all of

the equity owners are accredited investors.

 

4.             Representations

and Warranties of the Company.  As a

material inducement for the Purchaser’s purchase of the Shares, the Company

represents, warrants, covenants and acknowledges to the Purchaser that:

 

(a)           The Company is a corporation duly

organized, validly existing and in good standing under the laws of the State of

Delaware and has the requisite corporate power and authority to own its

properties and to carry on its business as now being conducted and presently

proposed to be conducted.

 

(b)           The Shares are being transferred to

the Purchaser free and clear of any liens, encumbrances or other restrictions,

other than restrictions on transfer that are contained in the Investors Rights

Agreement of NextNet, as it may be amended from time to time, the Voting

Agreement of NextNet, as it may be amended from time to time, or are otherwise

set forth herein or imposed by applicable securities laws.

 

5

 

5.             Merger,

Consolidation or Other Change in Control of the Company or NextNet.

 

(a)           If the Company shall at any time

consolidate with or merge into to another corporation (where the Company is not

the continuing corporation after such merger, consolidation, sale of all or

substantially all of its assets or other change-in-control), or the Company

shall sell, transfer or lease all or substantially all of its assets, then, in

any such case, the Purchaser thereupon (and thereafter) shall continue to be

entitled to be bound by the terms of this Agreement and shall be entitled to

receive the number of Shares determined in accordance with Section 1 above.

 

(b)           If NextNet shall at any time

consolidate with or merge into another corporation (where NextNet is not the

continuing corporation after such merger, consolidation or other

change-in-control), or NextNet shall sell, transfer or lease all or

substantially all of its assets, then, in any such case, the Purchaser

thereupon (and thereafter) shall be entitled to receive the number of Shares

(or the proceeds resulting from the sale of such Shares in connection with such

merger, consolidation, or other change-in-control) determined in accordance

with Section 1 above.

 

6.             Insolvency

or Bankruptcy of the Company or NextNet. 

Upon the insolvency or bankruptcy (whether voluntary or involuntary) of

the Company or NextNet, or the appointment of or taking possession by a

receiver, liquidator, assignee, trustee, custodian, sequestrator (or other

similar official) of the Company or NextNet or any substantial part of the

Company’s or NextNet’s property, or any general assignment for the benefit of

creditors of the Company or NextNet, the Purchaser shall be an unsecured

general creditor of the Company or NextNet, as applicable, and shall not have

any security interest or other rights in connection with this Agreement or the

Shares purchased hereunder.

 

7.             Miscellaneous.

 

(a)           Binding Effect.  This Agreement shall be binding upon and

inure to the benefit of and be enforceable against the parties hereto and their

respective successors and permitted assigns.

 

(b)           Governing Law.  This Agreement shall in all respects be

governed by, and enforced and interpreted in accordance with, the laws of the

State of Minnesota, except with respect to its rules relating to conflicts of

laws.

 

(c)           Legends.  The Shares issued to the Purchaser pursuant

to this Agreement shall contain the following legends:

 

THESE SHARES HAVE NOT BEEN REGISTERED

UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY

STATE AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT

TO AN EFFECTIVE REGISTRATION STATEMENT OR EXEMPTION FROM REGISTRATION UNDER THE

FOREGOING LAWS.  ACCORDINGLY, THESE

 

6

 

SHARES MAY NOT BE SOLD, TRANSFERRED

OR OTHERWISE DISPOSED OF WITHOUT (i) AN OPINION OF COUNSEL SATISFACTORY TO

ZAMBA CORPORATION THAT SUCH SALE, TRANSFER OR OTHER DISPOSITION MAY LAWFULLY BE

MADE WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933 AND APPLICABLE STATE

SECURITIES LAWS OR (ii) SUCH REGISTRATION.

 

THE SHARES EVIDENCED HEREBY ARE SUBJECT TO A VOTING AGREEMENT BY AND AMONG THE COMPANY AND

CERTAIN STOCKHOLDERS OF THE COMPANY (A COPY OF WHICH MAY BE OBTAINED FROM THE

COMPANY), AND BY ACCEPTING ANY INTEREST IN SUCH SHARES THE PERSON ACCEPTING

SUCH INTEREST SHALL BE DEEMED TO AGREE TO AND SHALL BECOME BOUND BY ALL THE

PROVISIONS OF SAID VOTING AGREEMENT.

 

(d)           Notices.  All notices, consents, requests, demands,

instructions or other communications provided for herein shall be in writing

and shall be deemed validly given, made and served when (a) delivered

personally, (b) sent by certified or registered mail, postage prepaid,

(c) sent by reputable overnight delivery service, or (d) sent by

telephonic facsimile transmission, and, pending the designation of another

address, addressed as follows:

 

	

  If to the Company:

  	

  Zamba Corporation

  
	

   

  	

  3033 Excelsior Blvd.,

  Suite 200

  
	

   

  	

  Minneapolis, Minnesota

  55416

  
	

   

  	

  Attn:  Chief Financial Officer

  
	

   

  	

  Fax: (952) 893-3948

  
	

   

  	

   

  
	

  If to the Purchaser:

  	

  Doll Technology Side

  Fund, L.P.

  
	

   

  	

  c/o Doll Capital

  Management

  
	

   

  	

  3000 Sand Hill Road,

  Bldg 3, Suite 225

  
	

   

  	

  Menlo Park, CA 94205

  
	

   

  	

  Fax: (650) 854-9159

  

 

(e)           Entire Agreement and Counterparts.  This Agreement evidences the entire

agreement between the Company and the Purchaser relating to the subject matter

hereof and supersedes in all respects any and all prior oral or written

agreements or understandings.  This

Agreement may not be amended or modified, and no provisions hereof may be

waived, except by written instrument signed by both the Company and the

Purchaser.  This Agreement may be

executed in counterparts, each of which shall be deemed an original and all of

which, when taken together, shall constitute one Agreement.

 

7

 

(f)            The Purchaser and the Company

understand the meaning and legal consequences of the agreements,

representations and warranties contained herein.  The Purchaser and the Company agree that such agreements,

representations and warranties shall survive and remain in full force and

effect after the execution hereof and payment for the Shares.

 

(g)           Any controversy or claim arising out

of or relating to this Agreement, the Subscriber’s purchase of Shares or any

breach of this Agreement, shall be settled by arbitration administered by the

American Arbitration Association in accordance with its Securities Arbitration

Rules, and judgment on the award rendered by the Arbitrator(s) may be entered

in any court having jurisdiction thereof.

 

(h)           Headings.  Section headings used in this Agreement have

no legal significance and are used solely for convenience of reference.

 

(i)            Expenses.  Each party shall pay for its own legal,

accounting and other similar expenses incurred in connection with the

transaction contemplated by this Agreement.

 

IN WITNESS

WHEREOF, the Company and the Purchaser have executed this Agreement as of the

date set forth in the first paragraph.

 

	

  THE

  COMPANY:

  	

   

  	

  THE

  PURCHASER: 

  
	

  ZAMBA

  CORPORATION

  	

   

  	

  DOLL

  TECHNOLOGY SIDE FUND, L.P.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  By:

  	

  /s/ Michael H. Carrel

  	

   

  	

   

  	

  /s/ Dixon R. Doll

  
	

  Name:

  	

  Michael H. Carrel

  	

   

  	

   

  	

  Name: Dixon R. Doll

  
	

  Title:

  	

  CFO

  	

   

  	

   

  	

  Title: Managing Member

  

 

8

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