Document:

Exhibit 10.1

 

TRANSMERIDIAN EXPLORATION, INC.

 

SUBSCRIPTION AGREEMENT AND INVESTMENT
REPRESENTATION

 

Effective July    , 2005

 

THE COMMON STOCK OF TRANSMERIDIAN EXPLORATION, INC. ISSUED PURSUANT TO
THIS SUBSCRIPTION AGREEMENT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY
STATE.  THERE ARE RESTRICTIONS ON THE
TRANSFERABILITY OF THE COMMON STOCK WHICH ARE DESCRIBED IN SECTION 3 OF
THIS SUBSCRIPTION AGREEMENT.

 

THE INVESTOR CERTIFIES THAT IT IS NOT A U.S. PERSON AND IS NOT
ACQUIRING THE COMMON STOCK FOR THE ACCOUNT OR BENEFIT OF ANY U.S. PERSON.  THE INVESTOR AGREES THAT IT WILL HOLD THE
COMMON STOCK FOR INVESTMENT PURPOSES ONLY AND THAT ANY RESALE OF SUCH COMMON
STOCK WILL BE MADE STRICTLY IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S
PROMULGATED UNDER THE SECURITIES ACT, PURSUANT TO REGISTRATION UNDER THE
SECURITIES ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION.  THE INVESTOR FURTHER AGREES NOT TO ENGAGE IN
ANY SHORT SALES, HEDGING TRANSACTIONS OR OTHER TRANSACTIONS WITH REGARD TO THE
COMPANY’S COMMON STOCK UNLESS IN STRICT COMPLIANCE WITH THE SECURITIES ACT.  THE INVESTOR UNDERSTANDS THAT THE COMPANY IS
RELYING UPON THE REPRESENTATIONS, COVENANTS AND AGREEMENTS CONTAINED IN THIS
SUBSCRIPTION AGREEMENT (AND ANY SUPPLEMENTAL INFORMATION) FOR THE PURPOSE OF
DETERMINING WHETHER THIS TRANSACTION MEETS THE REQUIREMENTS FOR SUCH EXEMPTION.

 

IT IS IMPOSSIBLE TO FORECAST THE RESULTS TO A PURCHASER FROM AN
INVESTMENT IN THE SECURITIES.  NO ONE CAN
PREDICT WHETHER, TO WHAT EXTENT, OR OVER WHAT TIME FRAME THE BUSINESS OF
TRANSMERIDIAN EXPLORATION, INC. MAY BE SUCCESSFUL.  THE PURCHASE OF COMMON STOCK INVOLVES A HIGH
DEGREE OF RISK AND SHOULD BE CONSIDERED ONLY BY PERSONS WHO CAN BEAR THE RISK
OF AN ENTIRE LOSS OF THEIR INVESTMENT.

 

SECTION 1

 

1.1                                 Subscription.  This Subscription Agreement (the “Agreement”)
is made by and between Transmeridian Exploration Incorporated, a corporation
organized under the laws of the State of Delaware (the “Company”), and the “Investor”,
as designated on Exhibit ”A” to this Agreement.  The Investor, intending to be legally bound,
hereby irrevocably subscribes for and agrees to purchase the number of shares
of common stock, par value $0.0006 per share, of the

 

1

 

Company (the “Subscribed Stock”) designated on Exhibit ”A” for the
consideration specified on such Exhibit ”A,” under the terms specified
below.  The Investor hereby agrees that
this Agreement shall be irrevocable and binding on the Investor and any
successors in interest, representatives or assigns of the Investor.  (The Subscribed Stock is sometimes herein
referred to as the “Common Stock.”)

 

1.2                                 Closing.  On or prior to July 29, 2005, the Investor
will transfer by wire to the Company in same day funds the total consideration
specified on Exhibit ”A,” according to the wire transfer instructions
provided by the Company, as payment in full for the Common Stock to be
purchased hereunder (such transfer of funds by the Investor and receipt thereof
by the Company hereinafter referred to as the “Closing”).  This Agreement shall be null and void if funds
are not received by the Company as of July 29, 2004 (the “Final Closing
Date”).

 

1.3                                 Multiple
Closing and Funding.  The Investor
understands and acknowledges that at any time on or prior to the Final Closing
Date, multiple closings and fundings may occur upon execution of substantially
identical subscription agreements by other investors.

 

1.4                                 Acceptance
or Rejection.  The Investor
understands and acknowledges that this Agreement shall be deemed to be accepted
by the Company only when the Agreement, together with Exhibit ”A” hereto, is
signed by an authorized officer of the Company on behalf of the Company.  Notwithstanding anything in this Agreement to
the contrary, the Company shall have no obligation to consummate the Closing and
issue the Common Stock to any person to whom the issuance of the Common Stock
would constitute a violation of the Securities Act or the securities laws of
any state of the United States or any foreign country.

 

1.5                                 Delivery
of Shares.  Upon receipt by the
Company of the requisite payment for the Common Stock to be purchased by the
Investor in the Closing, the Company will transmit certificates representing the
Common Stock subscribed for no later than 10 days after the Final Closing Date.  Such Common Stock will contain one or more
restrictive legends as specified in Section 3, below.  The Common Stock subscribed for herein shall
not be deemed issued to, or owned by, the Investor until the Investor delivers
the funds and the agreed upon number of shares of Common Stock are issued to
the Investor in accordance with the terms of each Closing.

 

1.6                                 Expenses
of Transaction.  In the absence of an
agreement in writing, each party shall bear its own direct expenses of the
transaction.  The Company shall bear all
costs of issuing the Common Stock to the Investor.

 

1.7                                 No
Brokerage Fees.  The Company shall
not be liable for any brokerage or other financial advisory fees payable to any
third party out of the proceeds of the investment.  This provision shall not restrict the use by
either party of any business, financial, legal, engineering, accounting, tax or
other professional services to evaluate and consummate the transaction.

 

2

 

SECTION 2

 

2.1                                 Registration.  The Company shall use all reasonable efforts
to (a) submit a Form S-3 registration statement (the “Registration
Statement”) to the U.S. Securities and Exchange Commission (the “SEC”) within
ten (10) days following the Final Closing Date covering the shares of Subscribed
Stock purchased by the Investor pursuant to this Agreement and (b) have
such Registration Statement declared effective within thirty (30) days
following the Final Closing Date.

 

2.2                                 Purchase
Price.  The price to be paid per
share of Common Stock purchased by the Investor hereunder shall be the be the volume
weighted daily average of the last sale price of the Common Stock on the
American Stock Exchange for each of the five (5) trading days immediately
preceding (but not including) the date of the Closing.

 

SECTION 3

 

3.1                                 Investor
Representations and Warranties.  The
Investor hereby acknowledges, represents and warrants to, and agrees with, the
Company, as follows:

 

(a)                                  General:

 

(i)                                     The Investor is
acquiring the Common Stock for its own account as principal, for investment
purposes only, and not with a view to, or for, resale, distribution or
fractionalization thereof, in whole or in part and no other person has a direct
or indirect beneficial interest in such Common Stock (excluding the current
shareholders and management of the Investor).

 

(ii)                                  The Investor
acknowledges its understanding that the offering and sale of the Common Stock
is intended to be exempt from registration under the Securities Act and, in
furtherance thereof, the Investor represents and warrants to and agrees with
the Company as follows:

 

(A)                              The Investor has the
financial ability to bear the economic risk of its investment, has adequate
means for providing for its current financial needs and contingencies and has
no need for liquidity with respect to its investment in the Company;

 

(B)                                The Investor has such
knowledge and experience in financial and business matters, including the risks
associated with operating in the Republic of Kazakhstan, as to be fully capable
of evaluating the merits and risks of the prospective investment; and

 

3

 

(b)                                 Information
Concerning the Company:  The Investor
and such of its business, financial, legal, engineering and tax advisors as it,
in its sole discretion, may choose to engage (collectively, the “Advisors”),
acknowledge that it:

 

(i)                                     Has been furnished
with a copy of the Company’s most recent Form 10-K (and amendments
thereto), Form 10-Q and proxy statement for the Company’s 2005
annual meeting.  In addition, the Company
will provide such other materials and documents as the Investor or its Advisors
may reasonably request.  All of these
materials are collectively referred to as the “Information.”  As a condition to consummating the Closing,
the Investor represents that it and/or its Advisors have carefully read the
Information and understand and have evaluated the risks of the purchase of
Common Stock and the considerations described in the Information; and have
relied solely (except as indicated in subsections (ii) and (iii) below)
on the Information;

 

(ii)                                  Is familiar with the
business and financial condition, properties, operations, and prospects of the
Company, all as generally described in the Information; has been given the
opportunity to ask questions of, and receive answers from, the appropriate
officers of the Company concerning the terms and conditions of the offering and
other matters pertaining to this investment and has asked such questions as it
desires to ask and all such questions have been answered to the full
satisfaction of the Investor; has been given the opportunity to obtain such
additional information necessary to verify the accuracy of the information
contained in the Information or that which was otherwise provided in order for
him to evaluate the merits and risks of purchase of the Common Stock to the
extent the Company possesses such information or can acquire it without
unreasonable effort or expense; and has not been furnished any other offering
literature or prospectus except as mentioned herein or in the Information;

 

(iii)                               Has not been furnished
with any oral representation or warranty in connection with the offering of the
Common Stock by the Company or any officer, employee, agent, affiliate or
subsidiary, which is not contained in the Information, and is relying solely on
the information contained in the Information and the answers to questions with
respect thereto furnished to the Investor by the Company;

 

(iv)                              Understands that the
purchase of the Common Stock involves various risks including, but not limited
to, those outlined in the Information and in this Agreement, and has determined
that the Common Stock is a suitable investment and that it could bear a
complete loss of its investment;

 

(v)                                 Is not relying on the
Company with respect to the economic considerations of the Investor related to
this investment.  The Investor has relied
on

 

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the advice of, or has consulted with, regarding the economic
considerations related to this investment, only its own personnel and Advisors;

 

(vi)                              The Investor is
authorized and qualified to become a stockholder in, and authorized to make its
capital contributions to, the Company, and the person signing this Agreement
and Investment Representation on behalf of such entity has been duly authorized
by such entity to do so;

 

(vii)                           Any information which the
Investor has heretofore represented or furnished to the Company with respect to
its financial position and business experience is correct and complete as of
the date of this Agreement and if there should be any material change in such
information it will immediately furnish such revised or corrected information
to the Company; and

 

(viii)                        The Investor understands that,
unless the Investor notifies the Company in writing to the contrary before the
Closing, all the representations and warranties contained in this Agreement will
be deemed to have been reaffirmed and confirmed as of the Closing, taking into
account all information received by the Investor.

 

(c)                                  Investor Awareness.  The Investor acknowledges, represents, agrees
and is aware that:

 

(i)                                     Substantially all
of the Company’s current operations are located in the Republic of Kazakhstan,
and the Company is subject to the political and economic risks of operating in
this country and region of the world.

 

(iii)                               No federal or state
agency has passed upon the Common Stock or made any finding or determination as
to the fairness of this investment;

 

(iv)                              The Company is subject to
substantial risks, including those described in Item 1 of its annual report on Form 10-K
for the year ended December 31, 2004, and the Investor acknowledges that
these risks, as well as others incident to the investment in the Common Stock
of the Company, could result in the loss of part or all of the purchase price
paid hereunder for the Subscribed Stock;

 

(v)                                 Any projections or
forward looking information provided to the Investor are based on various
estimates and forecasts by the Company and/or its consultants and are subject
to the caveats set forth in the Information. 
The Investor specifically acknowledges that actual results may differ
materially from these estimates and forecasts;

 

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(vi)                              Until the Registration Statement
is declared effective by the SEC, the investment in the Company is an illiquid
investment, and the Investor must bear the economic risk of investment in the
Common Stock during such period of time; and

 

(d)                                 Accredited Investor
Status.  The Investor represents that
the Investor qualifies as an Accredited Investor under U.S. securities laws and
the regulations of the SEC and any similar laws and regulations which may be
applicable to this transaction in any other jurisdiction which may govern the
Investor or this transaction.

 

(e)                                  Restrictions on
Transfer or Sale of the Common Stock:

 

(i)                                     The Investor is
acquiring the Common Stock subscribed for solely for the Investor’s own
beneficial account, for investment purposes, and not with a view to, or for
resale in connection with, any distribution of the Common Stock.  The Investor understands that the offer and
sale of the Common Stock is intended to be exempt from registration under U.S.
and state securities laws and has not been registered under the Securities Act
or the securities laws of any state of the United States in reliance on
specific exemptions under the provisions thereof.  These exemptions depend in part upon the
investment intent of the Investor and of the other representations made by the
Investor in this Agreement.  In
particular, the Investor certifies that it is not a U.S. person and is not
acquiring the Common Stock for the account or benefit of any U.S. person, nor
is the Investor a U.S. person who purchased securities in a transaction that
did not require registration under the Securities Act.  The Investor agrees that it will hold the
Common Stock for investment purposes only and that any resale of such Common
Stock will be made strictly in accordance with (i) the provisions of
Regulation S promulgated under the Securities Act, (ii) an effective
registration statement under the Securities Act, or (iii) pursuant to an
available exemption from registration. 
The Investor further agrees not to engage in any short sales, hedging
transactions or other similar transactions with regard to the Company’s Common
Stock unless in strict compliance with the Securities Act.  The Investor understands that the Company is
relying upon the representations, covenants and agreements contained in this Agreement
(and any supplemental information) for the purpose of determining whether this
transaction meets the requirements for such exemptions.

 

(ii)                                  The Investor
understands that the shares of Common Stock are restricted securities under
applicable U.S. securities laws and that the Securities Act, and that the rules of
the SEC provide in substance that the Investor may dispose of the Common Stock
only pursuant to an effective registration statement under the Securities Act
or an exemption therefrom.  The Investor
understands that, other than as expressly provided for in this Agreement, the
Company has no obligation or intention to register any of the Common Stock
purchased by the Investor hereunder, or to take any affirmative action so as to
permit sales pursuant to the Securities Act.

 

6

 

As a consequence, the Investor understands that it must bear the
economic risks of the investment in the Common Stock until such time as the
Registration Statement becomes effective. 
The Investor understands that the Investor may not at any time demand
the purchase by the Company of the Investor’s Common Stock.

 

(iii)                               The Investor agrees: (A) that
the Investor will not sell, assign, pledge, give, transfer or otherwise dispose
of the Common Stock or any interest therein, or make any offer or attempt to do
any of the foregoing, except pursuant to a registration of the Common Stock
under the Securities Act and all applicable state securities laws or in a
transaction which is exempt from the registration provisions of the Securities
Act and all applicable state securities laws; (B) that the Company and any
transfer agent for the Common Stock shall not be required to give effect to any
purported transfer of any of the Common Stock except upon compliance with the
foregoing restrictions; and (C) that a legend in substantially the
following form will be placed on the certificates representing the Common
Stock:

 

THE SHARES OF COMMON STOCK REPRESENTED BY
THIS CERTIFICATE HAVE BEEN TAKEN WITHOUT A VIEW TO THE DISTRIBUTION THEREOF
WITHIN THE MEANING OF THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”) AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OR ANY STATE
SECURITIES LAWS AND NEITHER THE COMMON STOCK NOR ANY INTEREST THEREIN MAY BE
OFFERED, SOLD, PLEDGED, HYPOTHECATED, ASSIGNED, TRANSFERRED OR OTHERWISE
DISPOSED OF IN THE UNITED STATES OR TO U.S. PERSONS EXCEPT PURSUANT TO
REGULATION S PROMULGATED UNDER THE SECURITIES ACT, AN EFFECTIVE REGISTRATION
STATEMENT UNDER SUCH SECURITIES ACT, OR AN EXEMPTION FROM REGISTRATION UNDER
SUCH SECURITIES ACT WHICH, IN THE OPINION OF COUNSEL FOR THE COMPANY, IS
AVAILABLE.   THE HOLDER AGREES NOT TO
ENGAGE IN ANY SHORT SALES, HEDGING TRANSACTIONS OR OTHER SIMILAR TRANSACTIONS
WITH REGARD TO THE COMMON STOCK OF THE COMPANY UNLESS IN STRICT COMPLIANCE WITH
THE SECURITIES ACT.

 

(iv)                              The Investor has not
offered or sold any portion of the Subscribed Stock and has no present
intention of dividing such Common Stock with others or of reselling or
otherwise disposing of any portion of such Common Stock either currently or
after the passage of a fixed or determinable period of time or upon the
occurrence or nonoccurrence of any predetermined event or circumstance.

 

7

 

SECTION 4

 

4.1                                 Survival;
Indemnification.  All
representations, warranties and covenants contained in this Agreement and the
indemnification contained in this Section 4.1 shall survive (i) the
acceptance of the Agreement by the Company and the Closing, (ii) changes
in the transactions, documents and instruments described in the Information
which are not material or which are to the benefit of the Investor, and (iii) the
merger, sale, bankruptcy, insolvency or other change in the legal status of the
Investor.  The Investor acknowledges the
meaning and legal consequences of the representations, warranties and covenants
in Section 3 hereof and that the Company has relied upon such
representations, warranties and covenants in determining the Investor’s
qualification and suitability to purchase the Common Stock.  The Investor hereby agrees to indemnify,
defend and hold harmless the Company, its officers, directors, employees,
agents and controlling persons, from and against any and all losses, claims,
damages, liabilities, expenses (including attorneys’ fees and disbursements),
judgments or amounts paid in settlement of actions arising out of or resulting
from the failure of any representation herein or the breach of any warranty or
covenant herein.  Notwithstanding the
foregoing, however, no representation, warranty, covenant or acknowledgment
made herein by the Investor shall in any manner be deemed to constitute a
waiver of any rights granted to it under the Securities Act or the securities
laws of any state of the United States.

 

4.2                                 Modification.  Neither this Agreement nor any provisions
hereof shall be modified, discharged or terminated except by an instrument in
writing signed by the party against whom any waiver, change, discharge or
termination is sought.

 

4.3                                 Notices.  Any and all notices or other communications
or deliveries required or permitted to be provided hereunder shall be in
writing and shall be deemed given and effective on the earliest of (a) the
date of transmission, if such notice or communication is delivered via
facsimile at the facsimile number specified in this Section 4.3 prior to
5:00 p.m. (Houston time) on a business day, (b) the next business day
after the date of transmission, if such notice or communication is delivered
via facsimile at the facsimile number specified in this Section on a day
that is not a business day or later than 5:00 p.m. (Houston time) on any
business day, or (c) upon delivery, if sent by an internationally
recognized courier service.  The addresses
for such notices and communications shall be as follows:

 

if to the Investor, addressed as specified in Exhibit ”A”; and

 

if to the Company, addressed to:

 

Transmeridian Exploration, Inc.

397 N. Sam Houston Pkwy E, Suite 300

Houston, Texas 77060

Attention:  Chief Financial
Officer

Facsimile No.:  281-999-9094

 

8

 

or to such other address or addresses or facsimile number or numbers as
any such party may most recently have designated in writing to the other
parties hereto by such notice.

 

4.4                                 Counterparts.  This Agreement may be executed through the
use of separate signature pages or in any number of counterparts, and each
of such counterparts shall, for all purposes, constitute one agreement binding
on all the parties, notwithstanding that all parties are not signatories to the
same counterpart.

 

4.5                                 Binding
Effect.  Except as otherwise provided
herein, this Agreement shall be binding upon and inure to the benefit of the
parties and their heirs, executors, administrators, successors, legal
representatives and assigns.  If the
Investor is more than one person, the obligation of the Investor shall be joint
and several and the agreements, representations, warranties and acknowledgments
herein contained shall be deemed to be made by and be binding upon each such
person and its heirs, executors, administrators and successors.

 

4.6                                 Entire
Agreement.  This instrument contains
the entire agreement of the parties, and there are no representations,
covenants or other agreements except as stated or referred to herein.

 

4.7                                 Assignability.  This Agreement is not transferable or
assignable by the Investor except as may be provided herein.

 

4.8                                 Applicable
Law.  This Agreement shall be
governed by and construed in accordance with the laws of the State of Texas.

 

IN WITNESS WHEREOF, the undersigned have executed this Agreement
effective as of the date first written above.

 

 

	
  TRANSMERIDIAN EXPLORATION INCORPORATED

  
	
   

  
	
   

  
	
  By: 

  	
   

  	
   

  
	
  Lorrie T. Olivier

  
	
  President and Chief Executive Officer

  
	
   

  
	
   

  
	
  INVESTOR:

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  

 

9

 

Exhibit ”A”

 

Subscription Details, Investor Information
and Signature Page

 

Subscription Agreement and Investment
Representation

 

Dated July    , 2005

 

	
  Name of Investor:

  	
   

  	
   

  
	
   

  
	
  Number of Shares:

  	
   

  	
   

  
	
   

  
	
  Price per Share:

  	
   

  	
   

  
	
   

  
	
  Total Consideration:

  	
   

  	
   

  
	
   

  
	
   

  
	
  Signature:

  	
   

  	
   

  
	
   

  
	
  Title or Capacity:

  	
   

  	
   

  
	
   

  
	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  
	
  Telephone #:

  	
   

  	
   

  
	
   

  
	
  Fax #:

  	
   

  	
   

  
	
   

  
	
  Citizenship:

  	
   

  	
   

  
	
   

  
	
  Primary Residence:

  	
   

  	
   

  
	
   

  
	
  Agreed and Accepted:

  	
   

  	
   

  
	
   

  
	
   

  
	
  TRANSMERIDIAN EXPLORATION INCORPORATED

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Lorrie T. Olivier

  
	
  President and Chief Executive Officer

  
					

 

10Exhibit 10.1

 

VOTING AGREEMENT

 

VOTING
AGREEMENT (this “Agreement”), dated as of August 3, 2005, is made by and among SSA
Global Technologies, Inc., a Delaware corporation (“Parent”), and the
Stockholders Listed on Schedule 1 attached hereto (each individually a “Stockholder”
and collectively the “Stockholders”).

 

WITNESSETH:

 

WHEREAS,
immediately prior to the execution of this Agreement, Parent, SSA-E Merger
Subsidiary Inc., a Delaware corporation and a wholly-owned subsidiary of Parent
(“Merger Sub”), SSA-E Acquisition Subsidiary Inc., a Delaware corporation and a
wholly-owned subsidiary of Parent (“Acquisition Sub”), and E.piphany, Inc., a
Delaware corporation (the “Company”), have entered into an Agreement and Plan
of Merger of even date herewith (the “Merger Agreement”), pursuant to which the
parties thereto have agreed, upon the terms and subject to the conditions set
forth therein, to consummate the Asset Purchase (as defined in the Merger
Agreement) and to merge Sub with and into the Company (the “Merger”); and

 

WHEREAS, each
Stockholder owns the number of shares of common stock, $0.0001 par value per
share, of the Company (the “Company Common Stock”) set forth opposite such
Stockholder’s name on Schedule 1 hereto (such shares of Company Common
Stock, together with any other shares of capital stock of the Company acquired
by such Stockholder after the date hereof and during the term of this
Agreement, including any shares of capital stock issued upon the exercise of
any warrants or options, the conversion of any convertible securities or
otherwise, being collectively referred to herein as the “Subject Shares”); and

 

WHEREAS, as
inducement and a condition to entering into the Merger Agreement, Parent has
required Stockholders to agree, and Stockholders have agreed, to enter into
this Agreement.

 

NOW,
THEREFORE, in consideration of the foregoing and the mutual premises,
representations, warranties, covenants and agreements contained herein, the
parties hereto, intending to be legally bound hereby, agree as follows:

 

Section 1.               Certain
Definitions.  In addition to the
terms defined elsewhere herein, capitalized terms used and not defined herein
shall have the respective meanings ascribed to them in the Merger
Agreement.  For purposes of this
Agreement:

 

(a)           “Beneficially
Own” or “Beneficial Ownership” with respect to any securities means
having “beneficial ownership” of such securities as determined pursuant to Rule
13d-3 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).  Without duplicative counting of the same
securities by the same holder, securities Beneficially Owned by a person
include securities Beneficially Owned by all other persons with whom such
person would constitute a “group” within the meaning of Section 13(d) of the
Exchange Act with respect to the securities of the same issuer.

 

 

Section 2.               Representations
and Warranties of Stockholder.  Each
Stockholder represents and warrants severally, but not jointly, to Parent as
follows:

 

(a)           Ownership
of Shares.  Such Stockholder is a
record owner and Beneficial Owner of the Subject Shares set forth opposite such
Stockholder’s name on Schedule 1. 
On the date hereof, the Subject Shares (including the options set forth
opposite such Stockholder’s name on Schedule 1) constitute all of the
shares of the Company Common Stock owned of record or Beneficially Owned by
such Stockholder.  There are no
outstanding options or other rights to acquire from such Stockholder or
obligations of such Stockholder to sell or to acquire, any shares of the
Company Common Stock.  With respect to
the shares of Company Common Stock held by it, each Stockholder has voting
power and power to issue instructions with respect to the matters set forth in
Sections 4 and 5 hereof, power of disposition, power of conversion, power to
demand appraisal rights and power to agree to all of the matters set forth in
this Agreement, in each case with respect to all of the Subject Shares with no
limitations, qualifications or restrictions on such rights, subject to applicable
securities laws and the terms of this Agreement.

 

(b)           Power;
Binding Agreement.  Such Stockholder
has the legal capacity, power and authority to enter into and perform all of
such Stockholder’s obligations under this Agreement.  This Agreement has been duly and validly
executed and delivered and constitutes a valid and binding agreement of such
Stockholder, enforceable against such Stockholder in accordance with its terms
except that (i) such enforcement may be subject to applicable bankruptcy,
insolvency or other similar laws, now or hereafter in effect, affecting
creditors’ rights generally, and (ii) the remedy of specific performance and
injunctive and other forms of equitable relief may be subject to equitable
defenses and to the discretion of the court before which any proceeding
therefor may be brought.

 

(c)           No
Conflicts.  None of the execution and
delivery of this Agreement by such Stockholder, the consummation by such
Stockholder of the transactions contemplated hereby or compliance by such
Stockholder with any of the provisions hereof shall (i) result in a violation
or breach of, or constitute (with or without notice or lapse of time or both) a
default (or give rise to any third party right of termination, cancellation,
material modification or acceleration) under any of the terms, conditions or
provisions of any note, loan agreement, bond, mortgage, indenture, license, or
material contract, commitment, arrangement, understanding, agreement or other
instrument or obligation of any kind to which such Stockholder is a party or by
which such Stockholder or any of its properties or assets may be bound, or (ii)
violate any order, writ, injunction, decree, judgment, order, statute, rule or
regulation applicable to such Stockholder or the Subject Shares.

 

(d)           Reliance.  Each Stockholder understands and acknowledges
that each of Parent and Sub is entering into the Merger Agreement in reliance
upon such Stockholder’s execution and delivery of this Agreement.

 

Section 3.               Disclosure.  Each Stockholder hereby agrees to permit the
Company to publish and disclose in the Proxy Statement (including all documents
and schedules filed with the Securities and Exchange Commission), and any press
release or other disclosure document which the Company, in its reasonable discretion,
determines to be required by law or necessary in connection with the Merger and
any transactions related thereto, such Stockholder’s 

 

 

identity and ownership of the Company Common
Stock and the nature of such Stockholder’s commitments, arrangements and
understandings under this Agreement.

 

Section 4.               Certain
Prohibited Transfers.  Prior to the
termination of this Agreement, each Stockholder agrees, subject to such
Stockholder’s right to sell the Subject Shares in bona fide transactions, not
to, directly or indirectly:

 

(i)            grant any proxy, grant
any power of attorney, deposit any of the Subject Shares into a voting trust or
enter into a voting agreement or arrangement with respect to the Subject Shares
in violation of this Agreement; or

 

(ii)           take any other action
that would make any representation or warranty of such Stockholder contained
herein untrue or incorrect or have the effect of preventing or disabling such
Stockholder from performing its obligations under this Agreement.

 

Section 5.               Voting
of the Company Common Stock.  Each
Stockholder hereby agrees that, during the period commencing on the date hereof
and continuing until the first to occur of (a) the Effective Time or (b)
termination of this Agreement in accordance with its terms, at any meeting
(whether annual or special and whether or not an adjourned or postponed
meeting) of the holders of Company Common Stock, however called, or in
connection with any written consent of the holders of Company Common Stock,
such Stockholder will appear at the meeting or otherwise cause the Subject
Shares to be counted as present thereat for purposes of establishing a quorum
and vote or consent (or cause to be voted or consented) all of the Subject
Shares:

 

(i)            in favor of the
adoption of the Merger Agreement and the approval of the Merger, the Asset
Purchase and the other actions contemplated by the Merger Agreement and this
Agreement and any actions required in furtherance thereof and hereof; and

 

(ii)           except as otherwise
agreed to in writing in advance by Parent in its sole discretion, against the
following (other than the Merger, the Asset Purchase and the transactions
contemplated by this Agreement and the Merger Agreement):  (A) any Acquisition Proposal and (B) any
action or agreement that would, to the knowledge of such Stockholder, result in
a breach in any material respect of any covenant, representation or warranty or
any obligation or agreement of the Company under the Merger Agreement or this
Agreement.

 

Section 6.               Irrevocable
Proxy.

 

(a)           Each
Stockholder hereby irrevocably grants to, and appoints, Shelley Isenberg and
Kirk Isaacson, or either of them, in their respective capacities as officers of
Parent, and any individual who shall hereafter succeed to any such office of
Parent, and each of them individually, such Stockholder’s proxy and attorney-in-fact
(with full power of substitution and resubstitution), for and in the name,
place and stead of such Stockholder, to vote or cause to be 

 

 

voted the Subject Shares at any meeting of
the stockholders of the Company or at any adjournment or postponement thereof:

 

(i)            in favor of the
adoption of the Merger Agreement and the approval of the Merger, the Asset
Purchase and the other actions contemplated by the Merger Agreement and this
Agreement and any actions required in furtherance thereof and hereof; and

 

(ii)           except as otherwise
agreed to in writing in advance by Parent in its sole discretion, against the
following (other than the Merger, the Asset Purchase and the transactions
contemplated by this Agreement and the Merger Agreement):  (A) any Acquisition Proposal and (B) any
action or agreement that would, to the knowledge of such Stockholder, result in
a breach in any material respect of any covenant, representation or warranty or
any obligation or agreement of the Company under the Merger Agreement or this
Agreement.

 

(b)           Each
Stockholder represents that any proxies heretofore given in respect of the
Subject Shares are not irrevocable, and that such proxies either have been or
are hereby revoked.

 

(c)           Each
Stockholder hereby affirms that the irrevocable proxy set forth in this Section
6 is given in connection with the execution of the Merger Agreement, and that
such irrevocable proxy is given to secure the performance of the duties of such
Stockholder under this Agreement.  
Except as to a termination of this Agreement in accordance with Section
8 (whereupon this irrevocable proxy shall be automatically revoked), each
Stockholder hereby further affirms that the irrevocable proxy is coupled with
an interest and may not be revoked, except as by amendment or modification in
accordance with Section 9(c) hereof. 
Each Stockholder hereby ratifies and confirms all that such irrevocable
proxy may lawfully do or cause to be done by virtue hereof.  Such irrevocable proxy is executed and
intended to be irrevocable in accordance with the provisions of Section 212(e)
of the DGCL.  The power and authority hereby conferred shall not be terminated by any
act of such Stockholder or by operation of law, by lack of appropriate power or
authority, or by the occurrence of any other event or events and shall be
binding upon all his representatives, executors, successors and/or
assigns.  If after the execution of this
Agreement a Stockholder shall cease to have appropriate power or authority, or
if any other such event or events shall occur, Parent is nevertheless
authorized and directed to vote the Subject Shares in accordance with the terms
of this Agreement as if such lack of appropriate power or authority or other
event or events had not occurred and regardless of notice thereof.

 

Section 7.               Fiduciary
Duties.  Each Stockholder is signing
this Agreement solely in such Stockholder’s capacity as an owner of his or her
respective Subject Shares, and nothing herein shall prohibit, prevent or
preclude such individual Stockholder from taking or not taking any action in
his or her capacity as an officer or director of the Company.

 

Section 8.               Termination.  This Agreement shall terminate on the
earliest of (a) termination of the Merger Agreement in accordance with its
terms, (b) the written agreement of the parties hereto to terminate this
Agreement, or (c) the Effective Time of the Merger.

 

 

Section 9.               Miscellaneous.

 

(a)           Entire
Agreement.  This Agreement (including
the documents and instruments referred to herein) constitutes the entire
agreement and supersedes all other prior agreements and understandings, both
written and oral, among the parties, or any of them, with respect to the
subject matter hereof.

 

(b)           Successors
and Assigns.  This Agreement shall
not be assigned by operation of law or otherwise without the prior written
consent of the other parties hereto. 
This Agreement shall be binding upon, inure to the benefit of and be
enforceable by each party and such party’s respective heirs, beneficiaries,
executors, representatives and permitted assigns.

 

(c)           Amendment
and Modification.  This Agreement may
not be amended, altered, supplemented or otherwise modified or terminated
(other than a termination under Section 8(a) or Section 8(c) of this Agreement)
except upon the execution and delivery of a written agreement executed by the
parties hereto.

 

(d)           Notices.  All notices, requests, claims and demands and
other communications hereunder shall be in writing and shall be deemed duly
delivered (i) four Business Days after being sent by registered or certified
mail, return receipt requested, postage prepaid, or (ii) one Business Day after
being sent for next business day delivery, fees prepaid, via a reputable
nationwide overnight courier service, in each case to the intended recipient as
set forth below:

 

	
   

  	
  If to Parent, to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SSA Global Technologies, Inc.

  
	
   

  	
   

  	
  500 West Madison

  
	
   

  	
   

  	
  Chicago, Illinois 60661

  
	
   

  	
   

  	
  Attn: General Counsel

  
	
   

  	
   

  	
  Fax: (312) 593-5955

  
	
   

  	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Schulte Roth & Zabel

  
	
   

  	
   

  	
  919 Third Avenue

  
	
   

  	
   

  	
  New York, New York 10022

  
	
   

  	
   

  	
  Attn: Robert B. Loper, Esq./Richard A. Presutti, Esq.

  
	
   

  	
   

  	
  Tel: (212) 756-2138/(212) 756-2063

  
	
   

  	
   

  	
  Fax: (212) 593-5955

  
	
   

  	
   

  	
   

  
	
   

  	
  If to the Company, to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  E.piphany, Inc.

  
	
   

  	
   

  	
  475 Concar Drive

  
	
   

  	
   

  	
  San Mateo, California 94402

  
	
   

  	
   

  	
  Attn: Karen Richardson

  
				

 

 

	
   

  	
   

  	
  Fax: (650) 578-7403

  
	
   

  	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  E.piphany, Inc.

  
	
   

  	
   

  	
  475 Concar Drive

  
	
   

  	
   

  	
  San Mateo, California 94402

  
	
   

  	
   

  	
  Attn: Andrew Sherman

  
	
   

  	
   

  	
  Fax: (650) 240-1734

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Wilson Sonsini Goodrich & Rosati

  
	
   

  	
   

  	
  650 Page Mill Road

  
	
   

  	
   

  	
  Palo Alto, California 94304

  
	
   

  	
   

  	
  Attn: 

  	
  Aaron J. Alter

  
	
   

  	
   

  	
   

  	
  N. Anthony Jeffries

  
	
   

  	
   

  	
  Fax: (650) 493-6811

  

 

If to Stockholder, to the address set forth opposite such Stockholder’s
name on Schedule 1.

 

Any Party may
give any notice or other communication hereunder using any other means
(including personal delivery, messenger service, facsimile or ordinary mail),
but no such notice or other communication shall be deemed to have been duly
given unless and until it is actually received by the Party for whom it is
intended.  Any Party may change the
address to which notices and other communications hereunder are to be delivered
by giving the other Parties to this Agreement notice in the manner herein set forth.

 

(e)           Severability.  Any term or provision of this Agreement which
is held to be invalid, illegal or unenforceable in any respect in any
jurisdiction shall, as to that jurisdiction, be ineffective to the extent of
such invalidity or unenforceability without rendering invalid or unenforceable
the remaining terms and provisions of this Agreement or affecting the validity
or enforceability of any of the terms or provisions of this Agreement in any
other jurisdiction.  If any provision of
this Agreement is so broad as to be unenforceable, the provision shall be
interpreted to be only so broad as is enforceable.

 

(f)            Specific
Performance.  The Parties acknowledge
that money damages would not be an adequate remedy at Law if any party fails to
perform in any material respect any of its obligations hereunder and
accordingly agree that each Party, in addition to any other remedy to which it
may be entitled at Law or in equity shall be entitled to seek to compel
specific performance of the obligations of any other Party under this
Agreement, without the posting of any bond, in accordance with the terms and
conditions of this Agreement in any court of the United States or any State
thereof having jurisdiction, and if any action should be brought in equity to
enforce any of the provisions of this Agreement, none of the Parties hereto
shall raise the defense that there is an adequate remedy at Law.  No remedy shall be exclusive of any other
remedy.  All available remedies shall be
cumulative.

 

 

(g)           No
Waiver.  The failure of any party
hereto to exercise any right, power or remedy provided under this Agreement or
otherwise available in respect hereof at Law or in equity, or to insist upon
compliance by any other party hereto with its obligations hereunder, and any custom
or practice of the parties at variance with the terms hereof, will not
constitute a waiver by such party of its right to exercise any such or other
right, power or remedy or to demand such compliance.

 

(h)           No
Third Party Beneficiaries.  This
Agreement is not intended to confer upon any Person other than the parties
hereto any rights or remedies hereunder.

 

(i)            Governing
Law.  This Agreement shall be
governed by and construed in accordance with the internal laws of the State of
Delaware (without reference to its choice of law rules).

 

(j)            Descriptive
Heading.  The descriptive headings
used herein are for reference purposes only and will not affect in any way the
meaning or interpretation of this Agreement.

 

(k)           Expenses.  All costs and expenses incurred in connection
with this Agreement and the transactions contemplated hereby shall be paid by
the party incurring such expenses.

 

(l)            Further
Assurances.  From time to time, at
any other party’s request and without further consideration (but without any
obligation to incur any expense), each party hereto shall execute and deliver
such additional documents and take all such further lawful action as may be
necessary or desirable to consummate and make effective, in the most
expeditious manner practicable, the transactions contemplated by this
Agreement.

 

(m)          Counterparts.  This Agreement may be executed in two or more
counterparts, each of which shall be deemed to be an original, but all of which
together shall constitute one and the same instrument.

 

 

[Remainder of this page intentionally left
blank.  Signature page follows.]

 

 

IN WITNESS
WHEREOF, Parent and each Stockholder have caused this Agreement to be duly
executed as of the day and year first written above.

 

 

	
   

  	
  SSA GLOBAL TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name: Kirk Isaacson

  
	
   

  	
  Title: President

  

 

 

	
   

  	
  STOCKHOLDERS:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Karen Richardson

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Phillip Fernandez

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Andrew Sherman

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Ashok Santhanam

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Kevin Yeaman

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Roger Siboni

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Fred Anderson

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Mohan Gyani

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Robert Joss

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Douglas Mackenzie

  	
   

  

 

 

SCHEDULE 1

 

 

	
  Stockholder

  	
   

  	
  Owned Common

  Stock

  	
   

  	
  Options

  	
   

  	
  Stock Units(1)

  
	
  Karen
  Richardson

  	
   

  	
  413,908

  	
   

  	
  1,654,432

  	
   

  	
  N/A

  
	
  Phillip
  Fernandez

  	
   

  	
  72,082

  	
   

  	
  1,245,499

  	
   

  	
  N/A

  
	
  Andrew
  Sherman

  	
   

  	
  48,186

  	
   

  	
  214,406

  	
   

  	
  N/A

  
	
  Ashok
  Santhanam

  	
   

  	
  0

  	
   

  	
  325,000

  	
   

  	
  N/A

  
	
  Kevin Yeaman

  	
   

  	
  88,878

  	
   

  	
  728,124

  	
   

  	
  N/A

  
	
  Roger Siboni

  	
   

  	
  1,161,812

  	
   

  	
  220,000

  	
   

  	
  N/A

  
	
  Fred
  Anderson

  	
   

  	
  0

  	
   

  	
  60,000

  	
   

  	
  N/A

  
	
  Mohan Gyani

  	
   

  	
  0

  	
   

  	
  60,000

  	
   

  	
  N/A

  
	
  Robert Joss

  	
   

  	
  15,000

  	
   

  	
  181,250

  	
   

  	
  10,769

  
	
  Douglas
  Mackenzie

  	
   

  	
  226,259

  	
   

  	
  87,500

  	
   

  	
  16,928

  

 

 

(1) Each stock unit reflects
the right to receive one share of Company Common Stock pursuant to the
Company’s Nonemployee Director Deferred Compensation Plan.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00088-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00088-of-00352.parquet"}]]