Document:

EXHIBIT

10.01

 

STOCK PURCHASE AGREEMENT

 

This Stock Purchase Agreement (this “Agreement”) is

made and entered into as of the 9th day of August, 2002, by and between Zamba

Corporation, a Delaware corporation (the “Company”), and John T. Johnson (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”), pursuant to the Series A

Preferred Stock Purchase Agreement dated as of September 21, 1998 between Zamba

and NextNet (the “Zamba Purchase Agreement”); and

 

WHEREAS, Zamba’s NextNet Stock can be converted to

common shares of NextNet at the exchange ratio of three shares of common stock

for every one share of preferred stock; and

 

WHEREAS, Zamba’s NextNet Stock is also subject to the

Amended and Restated Investors’ Rights Agreement dated as of July 10, 2000

among Zamba, NextNet and the Investors and Founders identified therein (the

“Investors’ Rights Agreement”), Right of First Refusal Agreement dated as of

September 21, 1998 among the Zamba, NextNet and the Series B Purchasers

identified therein (the “Right of First Refusal Agreement”), and the Voting

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

other investors (the “Voting Agreement”); and

 

WHEREAS, the Purchaser 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, 8,334 shares of

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

for an aggregate purchase price of $50,004. 

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.

 

(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

 

2

 

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, he should later desire to dispose of or transfer any of

the Shares in any manner, the

undersigned shall not do so without (i) first obtaining an opinion of counsel

satisfactory to the Company and NextNet that such proposed disposition or

transfer may lawfully be made without registration pursuant to the Securities

Act and applicable state securities laws or (ii) registering the resale of

the Shares under the Securities Act and applicable state securities laws.

 

(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.

 

(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)           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 Zamba 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 held by Purchaser.

 

(n)          Purchaser acknowledges that he or she has

already received a copy of the Amended and Restated Investors’ Rights Agreement dated as of July 10, 2000

among Zamba, NextNet and the Investors and Founders identified therein (the

“Investors’ Rights Agreement”). 

Purchaser understands that, pursuant to the terms of the Investors’

Rights Agreement, the registration rights described in Section 1 and the right

of first offer described in Section 2.6 thereof have not been assigned to the

Purchaser by Zamba.  Accordingly, the

Purchaser is not entitled to any registration rights or rights of first offer

with respect to the Purchaser’s ownership of the Shares.

 

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

 

3

 

$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

 

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

 

o            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 Zamba Purchase Agreement, the Right of First Refusal

Agreement, the Investors Rights Agreement, the Voting Agreement, all of which

as they may be amended from time to time, or are otherwise set forth herein or

imposed by applicable securities laws.

 

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

 

4

 

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 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.

 

5

 

THE

SALE, PLEADE, HYPOTHECATION OR TRANSFER OF THE SECURITIES REPRESENTED BY THIS

CERTIFICATE IS SUBJECT TO THE TERMS AND CONDITIONS OF A CERTAIN RIGHT OF FIRST

REFUSAL AGREEMENT BY AND BETWEEN THE STOCKHOLDER, THE CORPORATION AND CERTAIN

HOLDERS OF PREFERRED STOCK OF THE CORPORATION. 

COPIES OF SUCH AGREEMENT MAY BE OBTAINED UPON WRITTEN REQUEST TO THE

SECRETARY OF THE CORPORATION

 

(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:

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  Fax:

  	

   

  
					

 

(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.

 

(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.

 

6

 

	

  THE COMPANY:

  	

  THE PURCHASER:

  
	

   

  	

   

  	

   

  
	

  ZAMBA CORPORATION

  	

   

  
	

   

  	

   

  	

   

  
	

  By:

  	

   /s/ Michael H. Carrel

  	

   

  	

  /s/ John T. Johnson

  	

   

  
	

  Name:

  	

   Michael H. Carrel

  	

  Name: John T. Johnson

  
	

  Title :

  	

   CFO

  	

   

  
					

 

7EXHIBIT

10.02

 

STOCK

PURCHASE AGREEMENT

 

This Stock

Purchase Agreement (this “Agreement”) is made and entered into as of the 9th

day of August, 2002, by and between Zamba Corporation, a Delaware corporation

(the “Company”), and Bob Tallard IRA RBC Dain Rauscher Custodian (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”), pursuant to the Series A Preferred Stock Purchase Agreement dated

as of September 21, 1998 between Zamba and NextNet (the “Zamba Purchase

Agreement”); and

 

WHEREAS, Zamba’s

NextNet Stock can be converted to common shares of NextNet at the exchange

ratio of three shares of common stock for every one share of preferred stock;

and

 

WHEREAS, Zamba’s

NextNet Stock is also subject to the Amended and Restated Investors’ Rights

Agreement dated as of July 10, 2000 among Zamba, NextNet and the Investors and

Founders identified therein (the “Investors’ Rights Agreement”), Right of First

Refusal Agreement dated as of September 21, 1998 among the Zamba, NextNet and

the Series B Purchasers identified therein (the “Right of First Refusal

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

the Company and certain other investors (the “Voting Agreement”); and

 

WHEREAS, the

Purchaser 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, 5,000 shares of Zamba’s NextNet Stock (the “Shares”), at a

purchase price of $6.00 per share, for an aggregate purchase price of

$30,000.  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.

 

(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

 

2

 

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, he should later desire to

dispose of or transfer any of the Shares in any manner, the undersigned shall

not do so without (i) first obtaining an opinion of counsel satisfactory to the

Company and NextNet that such proposed disposition or transfer may lawfully be

made without registration pursuant to the Securities Act and applicable state

securities laws or (ii) registering the resale of the Shares under the

Securities Act and applicable state securities laws.

 

(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.

 

(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)           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 Zamba 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 held by Purchaser.

 

(n)          Purchaser

acknowledges that he or she has already received a copy of the Amended and

Restated Investors’ Rights Agreement dated as of July 10, 2000 among Zamba,

NextNet and the Investors and Founders identified therein (the “Investors’

Rights Agreement”).  Purchaser

understands that, pursuant to the terms of the Investors’ Rights Agreement, the

registration rights described in Section 1 and the right of first offer

described in Section 2.6 thereof have not been assigned to the Purchaser by

Zamba.  Accordingly, the Purchaser is

not entitled to any registration rights or rights of first offer with respect

to the Purchaser’s ownership of the Shares.

 

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

 

3

 

$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

 

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

 

o            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 Zamba Purchase Agreement, the Right of First Refusal

Agreement, the Investors Rights Agreement, the Voting Agreement, all of which

as they may be amended from time to time, or are otherwise set forth herein or

imposed by applicable securities laws.

 

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

 

4

 

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 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.

 

5

 

THE

SALE, PLEADE, HYPOTHECATION OR TRANSFER OF THE SECURITIES REPRESENTED BY THIS

CERTIFICATE IS SUBJECT TO THE TERMS AND CONDITIONS OF A CERTAIN RIGHT OF FIRST

REFUSAL AGREEMENT BY AND BETWEEN THE STOCKHOLDER, THE CORPORATION AND CERTAIN

HOLDERS OF PREFERRED STOCK OF THE CORPORATION. 

COPIES OF SUCH AGREEMENT MAY BE OBTAINED UPON WRITTEN REQUEST TO THE

SECRETARY OF THE CORPORATION

 

(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:

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  Fax:

  	

   

  
					

 

(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.

 

(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.

 

6

 

	

  THE COMPANY:

  	

  THE PURCHASER:

  
	

   

  	

   

  
	

  ZAMBA CORPORATION

  	

   

  
	

   

  	

   

  
	

  By:

  	

   /s/ Michael H. Carrel

  	

   

  	

  /s/ Robert S. Tallard

  	

   

  
	

  Name:

  	

   Michael H. Carrel

  	

  Name: Bob Tallard

  
	

  Title :

  	

   CFO

  	

   

  
					

 

7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00045-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00045-of-00352.parquet"}]]