Document:

Filed by Bowne Pure Compliance

 

Exhibit 10.3

TRANSITION SERVICES AGREEMENT

This Transition Services Agreement (“Agreement”) is entered into effective as of April 30,
2008 between, Technology Solutions Company, a Delaware corporation (“TSC”) and EnteGreat Solutions,
LLC, a Delaware limited liability company (“EnteGreat”).

RECITALS

WHEREAS, TSC and EnteGreat have entered into that certain Asset Purchase Agreement (the
“Purchase Agreement”); terms defined therein having the same meaning when used herein pursuant to
which the TSC’s SAP Practice (“SAP Practice”) will be sold by TSC to EnteGreat; and

WHEREAS, the SAP Practice has been operated as a practice within TSC, and TSC has provided
various services to the SAP Practice; and

WHEREAS, EnteGreat desires to continue to obtain various services from TSC and TSC desires to
continue to provide such services;

NOW, THEREFORE, in consideration of the foregoing and the covenants and agreements set forth
below, the parties hereto agree as follows:

ARTICLE 1

DEFINITIONS

Section 1.01 Defined Terms. In addition to the words and terms defined in the Purchase
Agreement which shall have the same meaning when used herein, the following terms, as used herein,
shall have the following meanings:

“Transition Period” means the period commencing on the Close Date and ending on the
31st day of July, 2008; provided, however, that with respect to any Transition Service,
EnteGreat may, upon notice to TSC, either (i) terminate the Transition Period as of any date prior
to the period provided for such services herein or (ii) extend the Transition Period to a date
beyond the period provided for such services herein, but not later than the four (4) month
anniversary date of the Close Date.

“Transition Services” means, except as otherwise provided herein, the service or services
described in the Transition Services Schedule(s) attached hereto.

 

1

 

ARTICLE 2

TRANSITION SERVICES

Section 2.01 Transition Services.

(a) During the Transition Period, TSC shall use its reasonable best efforts to provide, or
cause its Affiliates to use their reasonable best efforts to provide, to EnteGreat or its
Affiliates all Transition Services in the manner and at a relative level of service consistent in
all material respects with that provided by TSC or its Affiliates to the SAP Practice prior to the
Close Date.

(b) In consideration of the provision of Transition Services hereunder, EnteGreat shall pay to
TSC an hourly rate in accordance with the Hourly Rate Transition Services Schedule attached hereto,
for such resources’, at their scheduled cost, accumulated hours in support of the Transition
Services.

(c) Except as otherwise agreed, TSC shall invoice EnteGreat on a bi-weekly basis for the
Transition Services to be provided hereunder, and payment shall be due fifteen (15) days after
invoice date.

(d) Notwithstanding the foregoing, (i) for any Transition Services which include payment of
payroll or wages to employees of the SAP Practice, EnteGreat shall pay all necessary amounts
(including payroll taxes) to TSC prior to the payment thereof by TSC and (ii) any charges to TSC
from outside suppliers for the provision of Transition Services shall be submitted by TSC to
EnteGreat for payment and, except as TSC may otherwise agree in connection with any individual
statement of charges which has been submitted to TSC, EnteGreat hereby agrees to make payment
therefor either to such outside supplier in accordance with the payment terms of such outside
supplier or to TSC if TSC is required to pay such outside supplier, (in which event such payment
shall be made on or before the date on which TSC notifies EnteGreat it intends to make payment, or
if TSC does not provide such notice, immediately after TSC provides notice to EnteGreat that TSC
has made such payment).

(e) In the event EnteGreat shall request TSC to continue to provide any Transition Service
beyond the expiration of the Transition Period, TSC and EnteGreat shall negotiate in good faith and
at arm’s length the terms of any such extension, including fair market value pricing for all such
services.

Section 2.02 Records and Accounts. TSC shall maintain accurate records and accounts of all
transactions relating to the Transition Services performed by it pursuant to this Agreement.

Section 2.03 Directors and Officers of EnteGreat and TSC.

(a) The services of TSC’s officers and employees which are rendered to EnteGreat under this
Agreement shall at all times be in accordance with the historical business practice of the SAP
Practice.

 

2

 

(b) Nothing in this Agreement shall limit or restrict the right of any of TSC’s directors,
officers or employees to engage in any other business or devote their time and attention in part to
the management or other aspects of any other business, whether of a similar nature, or to limit or
restrict the right of TSC to engage in any other business or to render services of any kind to any
corporation, firm, individual, trust or association, except as provided in the Purchase Agreement.

(c) Except as expressly provided as part of any Transition Services hereunder, TSC shall have
no authority pursuant to this Agreement to commit EnteGreat or any of its Affiliates to any
obligation in any manner or to use EnteGreat’s name or to enter into any contract or commitment on
behalf of EnteGreat.

(d) Except as expressly provided as part of any Transition Services hereunder, EnteGreat shall
have no authority pursuant to this Agreement to commit TSC or any of its Affiliates to any
obligation in any manner or to use TSC’s (except as provided in the Purchase Agreement) name or to
enter into any contract or commitment on behalf of TSC.

Section 2.04 Limitation of Liability.

(a) TSC shall have no liability whatsoever to EnteGreat or any of its Affiliates for any
error, act or omission in connection with the Transition Services to be rendered by TSC to
EnteGreat hereunder unless any such error, act or omission derives from willful misconduct or
negligence.

IN NO EVENT SHALL TSC BE LIABLE FOR ANY SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES (INCLUDING,
WITHOUT LIMITATION, LOSS OF PROFITS, REVENUES OR DATA), WHETHER BASED ON BREACH OF CONTRACT, TORT
(INCLUDING NEGLIGENCE) OR OTHERWISE, WHETHER OR NOT ENTEGREAT HAS BEEN ADVISED OF THE POSSIBILITY
OF SUCH DAMAGE. THE LIABILITY OF TSC FOR DAMAGES OR ALLEGED DAMAGES HEREUNDER, WHETHER IN CONTRACT,
TORT OR ANY OTHER LEGAL THEORY, IS LIMITED TO, AND WILL NOT EXCEED, THE MONIES PAID BY ENTEGREAT TO
TSC FOR TRANSITION SERVICES UNDER THIS AGREEMENT.

(b) TSC is an independent contractor and when its employees act under the terms of this
Agreement, they shall be deemed at all times to be under the supervision and responsibility of TSC;
and, notwithstanding any reimbursement of labor costs as provided herein or otherwise, no person
employed by TSC and acting under the terms of this Agreement shall be deemed to be acting as agent
or employee of EnteGreat or any customer of EnteGreat for any purpose whatsoever.

 

3

 

Section 2.05 Confidentiality.

(a) Each party will keep any confidential or proprietary information of the other party
confidential and shall take all appropriate actions in order to protect such information. Neither
party nor any of their representatives will disclose any confidential or proprietary information of
the other party in any manner whatsoever without the prior written consent of the owner of the confidential or proprietary information. Each party will
transmit any confidential or proprietary information of the other party only to those employees and
representatives of such party who need to know such information in order to perform their functions
relating to this Agreement. The foregoing shall not apply to (i) information that has become part
of the public domain through no breach or violation of this Section 2.05 by the other party, (ii)
information that has previously been disclosed to the recipient by a third party who is in lawful
possession of such information and has the lawful right to disclose such information freely, or
(iii) information that is required to be disclosed (under threat of contempt or similar sanction)
in connection with any legal proceedings.

(b) The parties agree that monetary damages will not adequately compensate either party for
any breach or threatened breach of Sections 2.05 hereof. Because the breach or threatened breach
of any such Sections will result in irreparable injury to the aggrieved party, such aggrieved party
shall be entitled to any legal or equitable remedies to enforce such provisions, including specific
performance. In all cases, the aggrieved party shall also be entitled to pursue any other remedies
available at law, including damages, as a result of any such breach.

ARTICLE 3

MISCELLANEOUS

Section 3.01 Entire Agreement. This Agreement, including all ancillary agreements, constitutes
the entire agreement between the parties with respect to the subject matter hereof and supersedes
all prior written and oral and all contemporaneous oral agreements and understandings with respect
to the subject matter hereof.

Section 3.02 Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Delaware regardless of the laws that might otherwise govern under
principles of conflicts of laws applicable thereto.

Section 3.03 Descriptive Headings. The descriptive headings herein are inserted for
convenience of reference only and are not intended to be part of or to affect the meaning or
interpretation of this Agreement.

Section 3.04 Notices. All notices and other communications hereunder shall be in writing and
shall be deemed to have been duly given when delivered in person, by telecopy with answer back, by
express or overnight mail delivered by a nationally recognized air courier (delivery charges
prepaid), or by registered or certified mail (postage prepaid, return receipt requested) to the
respective parties at their chief executive offices, or to such other address as the party to whom
notice is given may have previously furnished to the others in writing in the manner set forth
above. Any notice or communication delivered in person shall be deemed effective on delivery. Any
notice or communication sent by telecopy or by air courier shall be deemed effective on the first
Business Day at the place at which such notice or communication is received following the day on
which such notice or communication was sent. Any notice or communication sent by registered or certified mail shall be deemed effective on the fifth Business Day at
the place from which such notice or communication was mailed following the day on which such notice
or communication was mailed.

 

4

 

Section 3.05 Parties in Interest. This Agreement shall be binding upon and inure solely to the
benefit of each party hereto and their legal representatives and successors, and each Subsidiary
and each Affiliate of the parties hereto, and nothing in this Agreement, express or implied, is
intended to confer upon any other Person any rights or remedies of any nature whatsoever under or
by reason of this Agreement, except as otherwise expressly provided herein.

Section 3.06 Counterparts. This Agreement may be executed in counterparts, each of which shall
be deemed to be an original but all of which shall constitute one and the same agreement.

Section 3.07 Dispute Resolution. Resolution of any and all disputes arising from or in
connection with this Agreement, whether based on contract, tort, or otherwise (collectively,
“Disputes”), shall be exclusively governed by and settled in accordance with the provisions of
Section 12.8 of the Purchase Agreement.

Section 3.08 Severability. If any term or other provision of this Agreement is invalid,
illegal or incapable of being enforced by any rule of law or public policy, all other conditions
and provisions of this Agreement shall nevertheless remain in full force and effect so long as the
economic or legal substance of the transactions contemplated hereby is not affected in any manner
materially adverse to any party. Upon such determination that any term or other provision is
invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith
to modify this Agreement so as to effect the original intent of the parties as closely as possible
in an acceptable manner to the end that transactions contemplated hereby are fulfilled to the
fullest extent possible.

Section 3.09 Failure or Indulgence Not Waiver; Remedies Cumulative. No failure or delay on the
part of any party hereto in the exercise of any right hereunder shall impair such right or be
construed to be a waiver of, or acquiescence in, any breach of any representation, warranty or
agreement herein, nor shall any single or partial exercise of any such right preclude other or
further exercise thereof or of any other right. All rights and remedies existing under this
Agreement are cumulative to, and not exclusive of, any rights or remedies otherwise available.

Section 3.10 Amendment. No change or amendment will be made to this Agreement except by an
instrument in writing signed on behalf of each of the parties to be bound by such change or
amendment.

Section 3.11 Authority. Each of the parties hereto represents to the other that (a) it has the
corporate or other requisite power and authority to execute, deliver and perform this Agreement,
(b) the execution, delivery and performance of this Agreement by it has been duly authorized by all
necessary corporate or other action, (c) it has duly and validly executed and delivered this
Agreement, and (d) this Agreement is a legal, valid and binding obligation, enforceable against it in accordance with its terms subject to applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’
rights generally and general equity principles.

 

5

 

Section 3.12 Interpretation. The headings contained in this Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of this Agreement. When
a reference is made in this Agreement to an Article or a Section, such reference shall be to an
Article or Section of this Agreement unless otherwise indicated.

IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed on its behalf
by its officers thereunto duly authorized on the day and year first above written.

	 	 	 	 	 
	 	 	TECHNOLOGY SOLUTIONS COMPANY
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	ENTEGREAT SOLUTIONS, LLC
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

 

6Filed by Bowne Pure Compliance

 

Exhibit 10.4

Pro-Forma Financial Statements :

On May 5, 2008, with an effective date of April 30, 2008, Technology Solutions Company (the “Company”) and
EnteGreat Solutions, LLC (“EnteGreat”) entered into an Asset Purchase Agreement (the “Purchase Agreement”)
pursuant to which the Company agreed to sell and EnteGreat agreed to acquire substantially all of the assets and
assume certain liabilities of the Company’s SAP practice (the “Practice”) together with certain other assets, liabilities,
properties and rights of the Company relating to its SAP services business.

The accompanying unaudited pro-forma consolidated balance sheet as of March 31, 2008 presents our historical amounts,
adjusted for the effects of the sale of the SAP Practice, as if such sale had occurred on March 31, 2008. The accompanying
unaudited pro-forma consolidated statements of operations are a summary of the Company’s operating results, excluding the SAP
Practice on a stand-alone basis. It was derived by adjusting the financial information found in the Company’s Annual Report on
Form 10-K of the year ended December 31, 2007 and the financial results for the first quarter of 2008. The accompanying
unaudited consolidated pro-forma financial statements should be read in conjunction with the Company’s historical consolidated
financial statements and related notes thereto, and Management’s Discussion and Analysis of Financial Condition and Results of
Operations, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2007. The accompanying
unaudited pro-forma consolidated financial statements and related notes are provided for information purposes only and do not
purport to be indicative of results which may be expected to occur in the future or which would have been actually obtained had
the sale of the SAP Practice been completed on the date indicated.

a. Pro-forma condensed balance sheet — post sale of SAP Practice:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Pro-forma Balance Sheet - Post Sale of SAP Practice	 
	 	 	 	 	 	 	 	 	 	 
	 	 	Pre-Transaction	 	 	 	 	 	Post-Transaction	 
	 	 	As reported	 	 	Transaction	 	 	Pro-forma	 
	 	 	March 31, 2008 (1)	 	 	Adjustments (2)	 	 	March 31, 2008 (3)	 
	 	 	(Unaudited)	 	 	(Unaudited)	 	 	(Unaudited)	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Cash and short-term investments
	 	$	9,557	 	 	$	4,150	 	 	$	13,707	 
	Promissory Note from EnteGreat
	 	 	—	 	 	 	750	 	 	 	750	 
	Other current assets
	 	 	4,796	 	 	 	(2,661	)	 	 	2,135	 
	Fixed assets and intangible assets, net
	 	 	566	 	 	 	—	 	 	 	566	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL ASSETS
	 	$	14,919	 	 	$	2,239	 	 	$	17,158	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Accounts payable
	 	$	2,252	 	 	$	(569	)	 	$	1,683	 
	Accrued compensation
	 	 	1,772	 	 	 	324	 	 	 	2,096	 
	Other current liabilities
	 	 	785	 	 	 	—	 	 	 	785	 
	Transactions liabilities
	 	 	—	 	 	 	215	 	 	 	215	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Total shareholder equity
	 	 	10,110	 	 	 	2,269	 	 	 	12,379	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL LIABILITIES AND STOCKHOLDERS EQUITY
	 	$	14,919	 	 	$	2,239	 	 	$	17,158	 
	 
	 	 	 	 	 	 	 	 	 

NOTES:

	 	 	 
	(1)	 	The pre-transaction unaudited condensed balance sheet represents the Company’s balance sheet as of March 31, 2008, prior
to the sale of the SAP Practice.
	 
	(2)	 	The transaction adjustments column represents those assets and liabilities changes resulting specifically from the sale
of the SAP Practice to EnteGreat.
	 
	(3)	 	The post-transaction pro-forma unaudited condensed balance sheet represents a pro-forma look back to March 31, 2008
assuming the impact of the transaction related adjustments.
	 
	(4)	 	The pro-forma condensed balance sheet may not necessarily reflect the balance sheet of the Company during any other
future period.

 

 

 

(b) Pro-forma Condensed statements of operations (1)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Year Ended December 31, 2007	 	 	Quarter ended March 31, 2008	 
	 	 	SAP Practice (2)	 	 	Exogen/Corp (2)	 	 	As Reported	 	 	SAP Practice (2)	 	 	Exogen/Corp (2)	 	 	As Reported	 
	 	 	(unaudited)	 	 	(unaudited)	 	 	(Audited)	 	 	(unaudited)	 	 	(unaudited)	 	 	(unaudited)	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenues before reimbursable expenses
	 	$	12,859	 	 	$	10,388	 	 	$	23,247	 	 	$	3,673	 	 	$	2,235	 	 	$	5,908	 
	Reimbursable expenses
	 	 	1,939	 	 	 	1,200	 	 	 	3,139	 	 	 	552	 	 	 	347	 	 	 	899	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL REVENUES
	 	 	14,798	 	 	 	11,588	 	 	 	26,386	 	 	 	4,225	 	 	 	2,582	 	 	 	6,807	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cost of Services
	 	 	14,969	 	 	 	9,244	 	 	 	24,213	 	 	 	3,502	 	 	 	1,856	 	 	 	5,358	 
	Management and administrative support
	 	 	1,051	 	 	 	9,538	 	 	 	10,589	 	 	 	538	 	 	 	759	 	 	 	1,297	 
	Intangible assets amortization
	 	 	—	 	 	 	205	 	 	 	205	 	 	 	—	 	 	 	49	 	 	 	49	 
	Intangible assets impairment — one-time, non-recurring (3)
	 	 	—	 	 	 	143	 	 	 	143	 	 	 	—	 	 	 	106	 	 	 	106	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL COSTS AND EXPENSES
	 	$	16,020	 	 	$	19,130	 	 	$	35,150	 	 	$	4,040	 	 	$	2,770	 	 	$	6,810	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	OPERATING (LOSS) — Company
reflecting SAP Practice on a stand-alone basis
	 	$	(1,222	)	 	$	(7,542	)	 	$	(8,764	)	 	$	185	 	 	$	(188	)	 	$	(3	)
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	INVESTMENT INCOME
	 	 	—	 	 	 	469	 	 	 	469	 	 	 	—	 	 	 	134	 	 	 	134	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	NET (LOSS) — Company
reflecting SAP Practice on a stand-alone basis
	 	$	(1,222	)	 	$	(7,073	)	 	$	(8,295	)	 	$	185	 	 	$	(54	)	 	$	131	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

NOTES:

	 	 	 
	(1)	 	The pro-forma statements of operations are a summary of the Company’s operating results excluding the SAP Practice on a
stand-alone basis. It was derived by adjusting the financial information found in the Company’s Form 10K for year ended
December 31, 2007 and the financial results for the first quarter of 2008.
	 
	(2)	 	The Company has traditionally reported a consolidated look at the statement of operations and not by practice area. For this
pro-forma representation, revenues and expenses were segregated by those estimated amounts associated with the SAP
Practice on a stand-alone basis, with the remainder being reflected as Exogen / Corporate. The Exogen/Corporate column, for
this pro-forma illustration, is carrying the entire burden of corporate administrative expenses, but for those such costs which
could be directly attributed to the SAP Practice. The allocated costs for both above periods reflect those costs that were reasonably
estimated to be directly attributable to the SAP Practice during the timeframe as indicated.
	 
	(3)	 	The intangible asset impairment amounts represents one-time non-recurring expenses recorded in the period when an
impairment of the intangible assets has been determined to have occurred. These amounts are not-recurring and represent a one
time recognition of expense.
	 
	(4)	 	The pro-forma condensed statement of operations may not necessarily reflect the results of the operations of the Company
during any other future period.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}]]