Document:

Exhibit 4.1

 

Final Version

 

SSA GLOBAL TECHNOLOGIES, INC.

2003 EQUITY INCENTIVE PLAN

 

I.                                         PURPOSE

 

The purpose of this SSA Global
Technologies, Inc. 2003 Equity Incentive Plan (“Plan”) is to further the growth,
development and financial success of the SSA Global Technologies, Inc., a Delaware
corporation (the “Company”), and its subsidiaries, by providing equity based incentives
and equity ownership opportunities to certain directors, officers, and employees
of and consultants to the Company or its subsidiaries.

 

II.                                     DEFINITIONS

 

A.            “Award” means a grant under the Plan of an Option, Common
Stock, or an Equity Incentive.

 

B.            “Award Agreement” means an agreement entered into by the
Company and a Participant setting forth the terms and provisions applicable to an
Award,

 

C.            “Board” means the Board of Directors of the Company.

 

D.            “Change in Control” shall mean (i) the approval by the
shareholders of the Company of a plan of complete liquidation or dissolution of
the Company, (ii) the consummation of a sale of all or substantially all of the
assets of the Company; (iii) the consummation of any transaction as a result of
which any individual or entity (other than Cerberus Capital Management, L.P., General
Atlantic Partners 76, L.P. or any of their related entities or affiliates) becomes
the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly
or indirectly, of securities of the Company representing more than fifty percent
(50%) of the total voting power of all voting securities of the Company then issued
and outstanding; or (iv) the consummation of a merger, consolidation, reorganization,
or business combination, other than a merger, consolidation, reorganization or business
combination which would result in the voting securities of the Company outstanding
immediately prior thereto continuing to represent (either by remaining outstanding
or by being converted into voting securities of the surviving entity) more than
fifty percent (50%) of the combined voting securities of the Company or the surviving
entity immediately after such merger, consolidation, reorganization of business
combination.

 

E.             “Code” means the Internal Revenue Code of 1986, as amended.

 

F.             “Committee” means the committee composed of two (2) or
more members of the Board as may be appointed by the Board from time to time to
administer the Plan. If Section 162(m) of the Code is applicable to the Company,
the membership of the Committee shall comply with the requirements of Section 162(m)
of the Code with respect to “outside directors” and the rules of the appropriate
securities market where the Common Stock is traded.

 

 

G.            “Common Stock” means the Class A Common Stock, $0.01 par
value per share, of the Company.

 

H.            “Company” has the meaning ascribed to such term in Section
I.

 

I.                “Disability” means a determination by the Company in accordance
with applicable law that, as a result of a physical or mental illness, the Participant
is unable and has been unable to perform the essential functions of his or her job
with or without reasonable accommodation for a period of (i) 90 consecutive days
or (ii) 180 days in any one (1) year period; provided, that in the event that the
Participant is subject to an employment agreement with the Company and such agreement
contains a definition of “disability”, such definition in such agreement shall be
substituted for the definition set forth above the purposes of this Plan.

 

J.             “Effective Date” has the meaning given to such term in
Section III.

 

K.            “Eligible Individual” means an individual who (i) is an
employee of the Company or any Subsidiary, (ii) is a member of the board of directors
of the Company or any Subsidiary, or (iii) provides services to the Company or any
Subsidiary as an independent contractor.

 

L.            “Equity Incentive” means an award of rights, other than
an Option or grant of Common Stock, the value of which, in whole or in part, at
any point in time is based on the value of a share of Common Stock.

 

M.           “Exchange Act” means the Securities Exchange Act of 1934,
as amended.

 

N.            “Fair Market Value Per Share” means, in the event the shares
of Common Stock are listed on an established national or regional stock exchange,
are admitted to quotation on the National Association of Security Dealers Automated
Quotation System, or are publicly traded on an established securities market, the
closing price of the shares of Common Stock on such exchange or system or in such
market (the highest such closing price if there is more than one such exchange or
market on the relevant date) for the business day as of which such value is being
determined. In the event that the shares are not listed, quoted or publicly traded
or even if listed, quoted or publicly traded, the price cannot be determined, “Fair
Market Value Per Share” shall be determined by the Board, in its good faith business
judgment.

 

O.            “Grant Date” means with respect to an Award the date set
forth in the Award Agreement as the effective grant date or, if the effective grant
date is not stated, the date of the Award Agreement.

 

P.            “Incentive Stock Option” or “ISO” means an Option intended
to qualify under Section 422 of the Code.

 

Q.            “Nonqualified Option” or “NQO” means an Option that is
not intended to qualify under Section 422 of the Code.

 

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R.            “Option” means the right to purchase shares of Common Stock
of the Company pursuant to the terms and conditions of an Option Agreement.

 

S.            “Option Amount” has the meaning ascribed to such term in
Section VI.

 

T.            “Option Price” means the price at which a share of Common
Stock may be purchased pursuant to the exercise of an Option.

 

U.            “Participant” means each Eligible Individual who has received
an Award under the Plan.

 

V.            “Performance Goals” means goals established by the Committee
that relate to the achievement by a Participant, the Company, any Subsidiary of
one or more of the following: revenue, earnings per share, return on stockholder
equity, return on average total capital employed, return on net assets employed,
cash flow, economic value added, earnings before interest and taxes, earnings before
interest, taxes, and amortization and depreciation allowances or such other goals
as may be established by the Committee in its discretion, in each case in accordance
with the provisions of Section 162(m) of the Code if and where applicable to the
Company.

 

W.           “Person” means a person as defined in Section 3(a)(9) of
the Exchange Act as modified and used in Sections 13(d) and 14(d) thereof.

 

X.            “Plan” has the meaning ascribed to such term in Section
I.

 

Y.            “Restriction Period” means the period during which a transfer
of Common Stock is limited in some way (based on the passage of time, achievement
of Performance Goals or the occurrence of other events determined by the Committee)
or other Equity Incentives are not vested.

 

Z.            “Section 162(m) Participant” means a Participant who is
subject to the provisions of Section 162(m) of the Code, if Section 162(m) of the
Code is applicable.

 

AA.         “Securities Act” means the Securities Act of 1933, as amended.

 

BB.         “Subsidiary” means any corporation, limited liability company,
limited liability partnership, or partnership 50% or more of the equity securities,
measured either by vote or value, of which is owned by the Company or by a Subsidiary
of the Company.

 

CC.         “Ten Percent Stockholder” means an individual who owns
stock possessing more than ten percent (10%) of the combined voting power of all
classes of stock of the Company or its parent or subsidiary corporations within
the meaning of Section 422 of the Code.

 

DD.         “Withholding Amount” has the meaning ascribed to such term
in Section VI.

 

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III.                                 EFFECTIVE DATE OF PLAN

 

The Plan shall become effective
on July 15, 2003, the shareholders of the Company having approved the adoption of
the Plan by the Board prior to such date, within twelve months before or following
the date of adoption of the Plan by the Board, in a manner intended to comply with
the shareholder approval requirement of Section 422(b)(l) of the Code.

 

IV.           ADMINISTRATION

 

A.            Committee.  The Plan shall
be administered by the Committee. The members of the Committee shall be appointed
from time to time by, and shall serve at the discretion of, the Board. The Committee
shall meet at such times and places as it determines and may meet either in person
or telephonically. A majority of its members shall constitute a quorum, and the
decision of a majority of those present at any meeting at which a quorum is present
shall constitute the decision of the Committee. A memorandum signed by all of its
members shall constitute the decision of the Committee without necessity, in such
event, for holding an actual meeting.

 

B.            Authority.  The Committee
shall have full power, and authority (subject to the provisions of the Plan) to
establish such rules and regulations as it may deem appropriate for proper administration
of the Plan and to make such determinations under, and issue such interpretations
of, the Plan and any Awards thereunder. Decisions of the Committee shall be final
and binding on all parties who have an interest in the Plan or any Award thereunder.

 

C.            Powers.  Subject to the
terms of the Plan, the Committee shall have full power and discretionary authority
to (i) make Awards to Participants; (ii) determine the type, terms and conditions
and number of shares of Common Stock subject to or with respect to which such Award
is granted, including the terms of the Award Agreement; (iii) specify the Option
Price; (iv) determine which Options are to be ISOs and which Options are to be NQOs;
(v) accelerate the time during which an Option may be exercised, notwithstanding
the provisions of the Award Agreement; (vi) accelerate the vesting of any Award
involving Common Stock, notwithstanding the provisions of the Award Agreement; (vii)
with the Participant’s consent, accelerate the date by which any unexercised but
vested portion of an Option terminates, (vii) interpret and administer the Plan
and any instrument or agreement relating thereto or made thereunder, (ix) with the
Participant’s consent, cancel an Award and issue a new Award in substitution for
the cancelled Award on the same or different terms, (x) establish, amend, suspend,
and waive such rules and regulations and appoint such agents as it may deem appropriate
for the proper administration of the Plan, (xi) authorize any person to execute
on behalf of the Company any instrument required to effectuate the grant of an Award
previously granted by the Committee; (xii) determine the rights and obligations
of Participants under the Plan; and (xiii) make any other determination or take
any other action that the Committee deems necessary or advisable for the proper
administration of the Plan.

 

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D.            Decisions Binding.  The interpretation
and construction by the Committee of any provision of the Plan or of any Award Agreement
shall be final, conclusive and binding on all Participants and any other individual
with a right under the Plan. The Committee’s decisions under the Plan need not be
uniform and may be made selectively among Participants. No member of the Committee
shall be liable for any action or determination made with respect to the Plan or
any Award made under it.

 

E.             Waiver of Conditions.  The Committee
may, in whole or in part, waive any conditions or other restrictions with respect
to any Award.

 

F.             Indemnification.  In addition to
such other rights of indemnification as they may have as directors, the members
of the Board or Committee shall be indemnified by the Company to the fullest extent
permitted by law against the reasonable expenses, including attorneys’ fees, actually
and necessarily incurred in connection with the defense of any action, suit or proceeding,
or in connection with any appeal therein, to which they or any of them may be a
party by reason of any action taken or failure to act under or in connection with
the Plan or any Award thereunder, and against all amounts paid by them in satisfaction
of a judgment in any such action, suit or proceeding except in relation to matters
as to which it shall be adjudged in such action, suit or proceeding that such Committee
member is not entitled to indemnification under applicable law; provided that within
60 days after institution of any such action, suit or proceeding such Committee
member shall in writing offer the Company the opportunity, at the Company’s expense,
to handle and defend the same, and such Committee member shall cooperate with and
assist the Company in the defense of any such action, suit or proceeding. The Company
shall not be obligated to indemnify any Committee member with regard to any settlement
of any action, suit or proceeding of which the Company did not consent to in writing
prior to such settlement.

 

V.            SHARES SUBJECT TO THE PLAN

 

A.            Shares Subject to the Plan.  Subject
to adjustment as provided in paragraph (D) below, the aggregate number of shares
of Common Stock with respect to which Awards may be granted under the Plan shall
be 600,000 and the Company shall reserve 600,000 shares of Common Stock for issuance
under the Plan, provided, however, that
on and after the date Section 162(m) of the Code is applicable to the Company, no
person may be granted an Award intended to qualify as “performance-based compensation”
under Section 162(m) of the Code, during any calendar year, with respect to more
than 500,000 shares. The shares with respect to which Awards may be granted under
the Plan may consist, in whole or in part, of authorized but unissued Common Stock
or treasury shares. To the extent Awards of Equity Incentives are made under the
Plan, an appropriate number of shares shall be deemed reserved for issuance with
respect to such Awards and the number of shares which may be issued under the Plan
with respect to other types of Awards shall be reduced by a corresponding number.

 

B.            Unused Stock: Unexercised Rights.  If
(a) any Award terminates, expires or is cancelled prior to delivery of all of the
shares of Common Stock reserved with respect thereto or of other consideration issuable
or payable with respect to such Award, or (b)

 

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any shares of Common Stock
acquired pursuant to the Plan are forfeited, then the number of shares of Common
Stock reserved with respect to such Award shall again be available for granting
in connection with additional Awards under the Plan.

 

C.            Adjustment in Capitalization.  In
the event of any dividend or other distribution (in whatever form), recapitalization,
stock split, reverse stock split, reorganization, merger, consolidation, split-up,
spin off, combination, repurchase, or exchange of Common Stock or other securities
of the Company, issuance of warrants or other rights to purchase Common Stock or
other securities of the Company, or other similar corporate transaction or event
which affects the Common Stock, the Committee shall adjust the Plan and the terms
of any Award as it deems appropriate, in its discretion, in order to prevent dilution
or enlargement of the benefits or potential benefits intended to be made available
under the Plan or such Award. The foregoing notwithstanding, the Committee shall
not make any adjustment to the Plan or any Award which would subject any Award to
variable accounting treatment under then current generally accepted accounting principles
applicable in the United States.

 

VI.           OPTIONS

 

A.            Grant of Options.  Subject to the
terms and provisions of the Plan, Options may be granted to Eligible Individuals
in such number and types, upon such terms, and at any time and from time to time
as shall be determined by the Committee. All Options shall be granted pursuant to
the terms of an Award Agreement which specifies the type of Option granted, the
duration of the Award, the Restriction Period, if any, the Option Price, the number
of shares of Common Stock to which the Award relates, and such other provisions
as the Committee deems appropriate to the Award. Options granted to employees of
the Company or a Subsidiary may be in the form of ISOs or NQOs. Options granted
to other Eligible Individuals shall be in the form of NQOs.

 

B.            Option Price.  The Option Price
with respect to each Award intended to be treated as a NQO shall be determined by
the Committee and may be less than Fair Market Value Per Share at the time of the
Award, provided that NQOs granted to a Section 162(m) Participant shall either have
an Option Price of not less than 100% of the Fair Market Value Per Share of the
underlying Common Stock or be subject to the attainment of such Performance Goals
as are established by the Committee, unless otherwise determined by the Committee.
The Option Price with respect to each Option intended to be treated as an Incentive
Stock Option shall not be less than 100% of the Fair Market Value Per Share on the
Grant Date (or less than 110% of the Fair Market Value Per Share on the Grant Date
if the Participant is a Ten Percent Shareholder).

 

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C.            Incentive Stock Options.  The term over
which each Option intended to be treated as an ISO shall not exceed ten years (five
years where the Participant is a Ten Percent Shareholder. The aggregate Fair Market
Value Per Share (determined at the time the Option is granted) of Common Stock with
respect to which ISOs are first exercisable by any Participant during any calendar
year under all option plans of the Company or any Subsidiary shall not exceed $100,000.

 

D.            California Law Provisions  To
the extent that the Company may be relying on the registration exemption under Section
25102(o) of the California Corporate Securities Law of 1968, each Award Agreement
involving an Option granted to an Eligible Individual who is an employee, but not
an officer, of the Company, shall comply with the provisions of such law regarding
minimum vesting periods, exercise periods following termination of employment, and
maximum option terms.

 

E.             Termination of Employment.  Except
as otherwise provided in the Award Agreement, no option may be exercised more than
(a) ninety days after a Participant’s employment (or other service arrangement)
with the Company terminates for any reason other than Disability or death or (b)
one (1) year after a Participant’s employment (or other service arrangement) with
the Company terminates by reason of Disability or death.

 

F.             Manner of Exercise.  The manner in
which a Participant exercises an Option shall be set forth in the Award Agreement,
provided that in all events such exercise shall be conditioned on payment to the
Company at the time of exercise, in a manner permitted under G. below, an amount
equal to the sum of (i) the product of the number of shares of Common Stock to be
acquired pursuant to such exercise and the applicable Option Price (“Option Amount”)
and (ii) the minimum applicable federal, state, and local income and employment
taxes which the Company is required to withhold and deposit on behalf of the Participant
with respect to such exercise (“Withholding Amount”).

 

G.            Payment.  The Committee
shall determine the method and form of payment of the Option Amount and Withholding
Amount. The foregoing notwithstanding, the Committee shall not allow payment of
the Withholding Amount by means of the delivery of Common Shares or the cancellation
of a portion of an Option to the extent that a fractional share of Common Stock
or an Option including the right to acquire a fractional share would remain after
such payment and obligate the Company to make a cash payment with respect to such
fractional share.

 

H.            Rights as a Stockholder.  No Participant
(or any legal representative, heir, legatee or permitted transferee) shall have
any rights as a stockholder with respect to any shares covered by an Option until
exercise thereof. Unless otherwise provided in the Award Agreement, no adjustment
shall be made for dividends (ordinary or extraordinary, whether in cash, securities
or other property) or distributions or other rights for which the record date is
prior to the exercise date.

 

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VII.         STOCK GRANTS

 

A.            Awards.  The Committee
shall have discretion to grant Awards in the form of grants of Common Stock to Eligible
Individuals, with or without payment therefore. Such Awards shall be subject to
such Restriction Periods and such other terms and conditions as the Committee deems
appropriate, including, without limitation, restrictions on sale or other disposition
and rights of the Company to reacquire such Common Stock upon termination of the
Participant’s employment or service within specified periods.

 

B.            Performance Goals.  Without limitation,
and unless otherwise determined by the Committee if Section 162(m) of the Code is
applicable to the Company, any grant of Common Stock to a Section 162(m) Participant
shall provide that the Stock shall be subject to forfeiture if certain Performance
Goals established by the Committee over a designated period of time are not achieved.

 

C.            Registration.  Any grant of Common
Stock under the Plan to a Participant may be evidenced in such manner as the Committee
may deem appropriate, including, without limitation, book-entry registration or
issuance of a stock certificate or certificates. In the event any stock certificate
is issued in respect of shares of Common Stock granted under the Plan to a Participant,
such certificate shall be registered in the name of the Participant and shall bear
an appropriate legend (as determined by the Committee) referring to the terms, conditions
and restrictions applicable to such stock.

 

D.            Other Rights.  Unless otherwise
determined by the Committee, during any Restriction Period, Participants holding
shares of Common Stock granted hereunder may exercise full voting rights with respect
to those shares (if applicable) and shall be entitled to receive all dividends and
other distributions paid or made with respect to those shares while they are so
held; provided, however, that the
Committee may provide in any grant of shares of Common Stock that payment of dividends
thereon may be deferred until termination of the Restriction Period and may be made
subject to the same restrictions regarding forfeiture as apply to such shares of
stock.  If any such dividends or distributions
are paid in shares of Common Stock, the shares shall be subject to the same restrictions
on transferability as the shares of restricted stock with respect to which they
were paid.

 

E.             Forfeiture.  Except as otherwise
determined by the Committee and reflected in the Award Agreement, upon termination
of employment or service of a Participant with the Company or a Subsidiary for any
reason during the applicable Restriction Period, all shares of Common Stock still
subject to restriction shall be forfeited by the Participant to the Company; provided, however, that the Committee may,
waive in whole or in part any or all remaining restrictions with respect to shares
of Common Stock held by a Participant at such time.

 

VIII.        EQUITY INCENTIVES

 

A.            Other Stock-Based Awards.  Equity
Incentives, valued in whole or in part by reference to, or otherwise based on, shares
of Stock, may be granted either alone or in

 

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addition to or in conjunction
with other Awards for such consideration, if any, and in such amounts and having
such terms and conditions as the Committee may determine.

 

B.            Other Benefits.  The Committee
shall have the right to provide types of benefits under the Plan in addition to
those specifically listed, if the Committee believes that such benefits would further
the purposes for which the Plan was established.

 

C.            Substitute Awards.  If the Company
at any time should acquire the business of another entity through a merger or consolidation,
or through the acquisition of stock or assets of such entity or its affiliates,
Awards may be granted under the Plan to those employees or directors of such entity
or its affiliates who, in connection with such succession, become employees or directors
of the Company or its Subsidiaries, in substitution for Awards with respect to such
entity held by them at the time of succession. The Committee shall, in its sole
and absolute discretion, determine the extent to which such substitute Awards shall
be granted (if at all), the person or persons to receive such substitute Awards,
the number of Awards to be received by each such person, the Option Price of any
Options and the terms and conditions of such substitute Awards; provided, however,
that the Option Price of each such substituted Option shall be an amount such that,
in the sole and absolute judgment of the Committee and in compliance with Section
424(a) of the Code (in the case of an ISO), the economic benefit provided by such
Award is not greater than the economic benefit represented by the Award with respect
to the acquired entity as of the date of the Company’s acquisition of such entity.
Notwithstanding anything to the contrary herein, no Award shall be granted, nor
any action taken, permitted or omitted, which would cause the Plan, or any Awards
granted hereunder as to which Rule 16b-3 under the Exchange Act may apply, not to
comply with such Rule.

 

IX.           CONDITIONS OF AWARDS

 

A.            Transferability.  Except as specifically
provided herein, Awards may be exercised during the lifetime of a Participant only
by the Participant.  Each Award shall not
be transferable other than by will or the laws of descent and distribution, except
that a Participant may, to the extent allowed by the Committee and in a manner specified
by the Committee: (a) designate in writing a beneficiary to exercise the Award after
the Participant’s death; or (b) transfer an Award; provided, however, that in no event may ISOs be transferred other
than by will or the laws of descent and distribution.

 

B.            Award Agreement.  Each Award granted
by the Committee shall be evidenced by an Award Agreement in such form as is determined
by the Committee. The Award Agreement shall include the terms and conditions of
the Award, including but not limited to, the type of Award, the number of shares
of Common Stock covered by the Award, the purchase or grant price of the Award,
and the term of the Award. No person shall have any rights under any Award granted
under the Plan unless and until the Company and the Participant to whom the Award
was granted shall have executed an Award Agreement. In the event of a conflict between
the Award Agreement and any other agreement with a Participant, including but not
limited to an employment agreement, the Award Agreement shall govern.

 

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C.            Issuance of Stock.  Shares of Common
Stock issued under the Plan may not be sold or otherwise disposed of except if applicable:
(a) pursuant to an effective registration statement under the Securities Act, or
in a transaction which, in the opinion of counsel for the Company, is exempt from
registration under the Securities Act; and (b) in compliance with state securities
laws. Further, as a condition to issuance of shares of Common Stock under the Plan,
the Participant, his beneficiary or his heirs, legatees or legal representatives,
as the case may be, shall execute and deliver to the Company a restrictive stock
transfer agreement in such form, and subject to such terms and conditions, as shall
be determined or approved by the Committee, which agreement, among other things,
may (a) impose certain restrictions on the sale or other disposition of any shares
of Common Stock acquired under the Plan (including a minimum holding period requirement),
and (b) require the surrender of shares of Common Stock acquired under the Plan
in connection with a Change in Control or other transaction involving a change in
ownership of the Company. The Committee may waive the foregoing restrictions, in
whole or in part, in any particular case or cases or may terminate such restrictions
in its discretion.

 

D.            Additional Restrictions; Legends.  All
shares delivered under the Plan pursuant to any Award shall be subject to such stock
transfer orders and other restrictions as the Committee may deem advisable under
the Plan and any applicable federal or state securities laws, and the Committee
may cause a legend or legends to be put on any certificates for shares of Common
Stock to make appropriate references to such restrictions.

 

E.             General Restrictions.  Notwithstanding
any other provision of the Plan, the Company shall have no liability to recognize
any exercise of an Option, deliver any shares of Common Stock under the Plan or
make any payment unless such exercise, delivery or payment would comply with all
applicable laws and the applicable requirements of any securities exchange or similar
entity.  The Company reserves the right to
restrict, in whole or in part, the delivery of Common Stock pursuant to any Award
prior to the satisfaction of all legal requirements relating to the issuance of
such Stock, their registration, qualification or listing or an exemption from registration,
qualification or listing.

 

X.            RIGHTS OF PARTICIPANTS

 

Nothing in the Plan shall
interfere with or limit in any way the right of the Company or a Subsidiary to terminate
any Participant’s employment or service at any time nor confer upon any Participant
any right to continue in the employ or service of the Company or a Subsidiary.

 

XI.           CHANGE IN CONTROL

 

A.            Change in Control.  Unless otherwise
provided in the applicable Award Agreement, each Award outstanding under the Plan
at the time of a Change in Control shall vest and become fully exercisable and all
restrictions with respect to each Award involving a stock grant shall lapse and
all such shares of Common Stock shall vest in full

 

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immediately prior to the effective
date of the Change in Control, provided that such acceleration of vesting and lapse
of restrictions shall not occur if and to the extent: (a) the Award Agreement is
assumed, or replaced with a similar type of award with terms and conditions no less
favorable to the Participant, by the successor entity (or parent thereof) in the
Change in Control or (b) the Award is replaced with a cash incentive program of
the successor entity which preserves the full, after-tax, economic value of the
Award at the time of the Change in Control and provides for subsequent payout consistent
with the vesting schedule applicable to Award. Immediately following the consummation
of the Change in Control, but upon at least 10 days’ advance notice to all affected
Participants, all outstanding options shall terminate and cease to be outstanding,
except to the extent assumed by the successor entity (or parent thereof).

 

Each Award which is assumed
by the successor entity (or parent thereof) shall be appropriately adjusted, immediately
after such Change in Control, to apply to the number and class of securities which
would have been issuable to the Participant in the consummation of such Change in
Control had the option been exercised or all restrictions lapsed immediately prior
to such Change in Control. Appropriate adjustments shall also be made to the number
and class of securities available for issuance under the Plan and the exercise price
payable per share under each outstanding option, provided that the aggregate exercise
price shall remain unchanged.

 

The portion of an ISO accelerated
in connection with a Change in Control shall remain exercisable as an ISO only to
the extent of the applicable annual limitation and to the extent such annual limitation
is exceeded such option shall be treated as a NQO.

 

The grant of Options or shares
of Common Stock under the Plan shall in no way affect the right of the Company to
adjust, reclassify, reorganize, or otherwise change it capital or business structure
or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part
of its business or assets.

 

With respect to Awards that
are not Options or grants of Common Stock, the Committee shall specify in the Award
Agreement the effect of a Change in Control on such award.

 

B.             Amendment or Rescission.  Notwithstanding
anything contained in this Section XI, the Board may, in its sole and absolute discretion,
amend, modify or rescind the provisions of this Section XI if it determines that
the operation of this Section XI may prevent the Change in Control from receiving
desired tax treatment, including without limitation requiring that each Participant
receive a replacement or substitute Award issued by the surviving or acquiring corporation.

 

XII.         AMENDMENT, MODIFICATION AND TERMINATION OF PLAN

 

A.            Term of Plan.  Unless terminated
earlier by the Board pursuant to Section XIII, the Plan shall terminate on, and
no Award shall be granted under the Plan after, July 15, 2013.

 

B.            Amendments and Termination.  The
Board may at any time amend, alter, suspend, discontinue or terminate the Plan;
provided, however, that stockholder
approval

 

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of any amendment of the Plan
shall be obtained if required by: (a) the Code or any rules promulgated thereunder;
(b) any applicable state or federal law; or (c) the listing requirements of the
principal securities exchange or market on which Common Stock is then traded.

 

C.            Amendment of Award Agreements.  The
Committee may at any time amend any outstanding Award Agreement; provided, however, that any amendment that
decreases or impairs the rights of a Participant under such Award Agreement shall
not be effective unless consented to by the Participant in writing, except that
Participant consent shall not be required in the event an Award is amended, adjusted
or cancelled under Sections V or XI.

 

D.            Survival Following Termination.  Notwithstanding
the foregoing, the authority of (a) the Committee to amend, alter, adjust, suspend,
discontinue or terminate any Award, waive any conditions or restrictions with respect
to any Award, and otherwise administer the Plan and any Award, and (b) the Board
to amend the Plan as it applies with respect to Awards granted prior to the date
of the Plan’s termination, shall extend beyond the date of the Plan’s termination.
Except to the extent the Committee has acted to amend, alter, adjust, suspend, discontinue
or terminate any Award pursuant to the preceding sentence, termination of the Plan
shall not affect the rights of Participants with respect to Awards previously granted
to them, and all unexpired Awards shall continue in force and effect after termination
of the Plan except as they may lapse or be terminated by their own terms and conditions.

 

XIII.        TAXES

 

The Company or a Subsidiary
shall be entitled to withhold from any payment made hereunder or from any payment
otherwise owing to the holder of an Award, the amount of any tax attributable to
any amount payable, or shares of Common Stock deliverable, under the Plan, after
giving the person entitled to receive such amount or shares of Common Stock notice
as far in advance as practicable, and the Company may defer making payment or delivery
under such Award if any such tax may be pending unless and until indemnified to
its satisfaction. Subject to VI(G) above, the Committee may, in its discretion,
permit a Participant to pay all or a portion of the federal, state and local withholding
taxes arising in connection with the exercise or realization of an Award by electing
to (a) have the Company withhold shares of Common Stock, (b) deliver a promissory
note of the Participant, in such form, and subject to such terms and conditions
as shall be acceptable to Committee, provided that in all such instances, the promissory
note shall be secured by the shares of Stock being acquired, (c) tender back shares
of Common Stock received in connection with such benefit, or (d) deliver other previously
owned shares of Stock, having a Fair Market Value equal to the amount to be withheld;
provided, however, that the amount
to be withheld shall not exceed the Participant’s statutory minimum total federal,
state and local tax obligations associated with the transaction. The election must
be made on or before the date as of which the amount of tax to be withheld is determined
and otherwise as required by the Committee.

 

12

 

XIV.        MISCELLANEOUS

 

A.            Other Terms.  Subject to applicable
law, the grant of any Award under the Plan may also be subject to other provisions
(whether or not applicable to the benefit awarded to any other Participant) as the
Committee determines appropriate, including, without limitation, provisions for
(a) one or more means to enable Participants to defer recognition of taxable income
relating to Awards or cash payments derived therefrom, which means may provide for
a return to a Participant on amounts deferred as determined by the Committee (provided that no such deferral means may result
in an increase in the number of shares of Common Stock issuable hereunder); (b)
the purchase of Common Stock under options in installments; (c) the financing of
the purchase of Common Stock under the options in the form of a promissory note
issued to the Company by a Participant on such terms and conditions as the Committee
determines; (d) restrictions on resale or other disposition; and (e) compliance
with federal or state securities laws and stock exchange or market requirements.

 

B.            No Fractional Shares.  No fractional
shares or other securities shall be issued or delivered pursuant to the Plan, and
the Committee shall determine (except as otherwise provided in the Plan) whether
cash, other securities or other property shall be paid or transferred in lieu of
any fractional shares or other securities, or whether such fractional shares or
other securities or any rights thereto shall be canceled, terminated or otherwise
eliminated.

 

C.            Issuance of Certificate.  To the extent
the Plan provides for the issuance of shares of Common Stock, the issuance may be
effected on a non-certificated basis, to the extent not prohibited by applicable
law or the applicable rules of any stock exchange.

 

XV.         LEGAL CONSTRUCTION

 

A.             Governing Law.  The Plan, and
all agreements hereunder, shall be construed in accordance with and governed by
the laws of the State of Illinois, without reference to any conflict of law principles
thereof. Any legal action or proceeding with respect to this Plan, any Award or
any award agreement, or for recognition and enforcement of any judgment in respect
thereof, may only be brought and determined in a court sitting in the State of Illinois.

 

B.             Severability.  If any provision
of the Plan or any award agreement or any Award (a) is or becomes or is deemed to
be invalid, illegal or unenforceable in any jurisdiction, or as to any person or
Award, or (b) would disqualify the Plan, any award agreement or any Award under
any law deemed applicable by the Committee, then such provision shall be construed
or deemed amended to conform to applicable laws, or if it cannot be so construed
or deemed amended without, in the determination of the Committee, materially altering
the intent of the Plan, award agreement or Award, such provision shall be stricken
as to such jurisdiction, person or Award, and the remainder of the Plan, such award
agreement and such Award shall remain in full force and effect.

 

13

 

C.            Benefit Amounts Not Salary.  No
Options or compensation received upon exercise of any Options under this Plan shall
be deemed salary or other compensation to the Participant for the purpose of computing
benefits to which a Participant may be entitled under any vacation, disability,
profit sharing, pension plan or other arrangement of the Company for the benefit
of its employees.

 

D.            No Additional Rights.  Neither the adoption
of this Plan nor the participation of any Participant in this Plan shall (a) affect
or restrict in any way the power of the Company to undertake any action otherwise
permitted under applicable law, or (b) affect or restrict in any way the discretion
or authority of the Board or officers of the Company in the management of the business
and affairs of the Company, or (c) confer upon any Participant the right to continue
performing services for the Company as an employee, nor shall it interfere in any
way with the right of the Company to terminate the services of any Participant as
an employee or otherwise at any time, with or without cause, or (d) create any security
or otherwise confer any rights or duties under or in respect of any state or federal
securities laws.

 

E.             Designation of Beneficiary.  A
Participant shall be entitled to designate one or more persons or entities as his
or her beneficiary with respect to Awards under the Plan. Any such designation shall
be made in a written instrument filed with the Committee. In the event that such
Participant fails to designate a beneficiary or such beneficiary dies before such
Participant, then the Participant’s beneficiary shall be his or her estate.

 

F.             Non-Transferability.  Awards under this
Plan are not assignable or transferable, except as expressly otherwise provided
in Section IX. No Participant or beneficiary designated according to this Plan shall
have the right to sell, assign, transfer, pledge, gift, bequeath, encumber or hypothecate
his or her right in or to any Award in any manner except as expressly provided in
Section IX, nor shall such right of any Participant or beneficiary be subject to
claims of his or her creditors other than the Company, or be liable to attachment,
execution or other process of law. Any attempted sale, assignment, transfer, pledge,
hypothecation, gift, bequest or other disposition of Participant’s right in or to
the Awards other than in accordance with Section IX shall be null and void and without
effect.

 

G.            Transfers and Leaves of Absence.  For
purposes of the Plan, (a) a transfer of an Participant’s employment or consulting
relationship, without an intervening period, between the Company and the Company’s
parent or a Subsidiary (or vice versa), between the Company’s parent and a Subsidiary
(or vice versa), or between Subsidiaries shall not be deemed a termination of employment
or a termination of a consulting relationship and (b) an Participant who is granted
in writing a leave of absence shall be deemed to have remained in the employ of,
or in a consulting relationship with, the Company (or a Subsidiary, whichever is
applicable) during such leave of absence.

 

H.            Effectiveness and Termination of Plan.  The
Plan shall be effective on the Effective Date; provided, however, (a) the Plan shall
be approved by the shareholders of the Company within 12 months of such date of
adoption by the Board, (b) no Award shall be exercised pursuant to the Plan until
the Plan has been approved by the shareholders of

 

14

 

the Company, and (c) no Award
may be granted hereunder on or after that date which is ten years from the effective
date of the Plan. The Plan shall terminate when all Awards granted hereunder either
have been fully exercised, and all shares of Common Stock which may be purchased
pursuant to the exercise of such Awards have been so purchased, or have expired;
provided, however, that the Board may in its absolute discretion terminate the Plan
at any time. Unless earlier terminated by the Board, the Plan shall terminate on
that date which is ten years from the effective date of the Plan. No such termination,
except as expressly provided for herein, shall in any way affect any Award then
outstanding without the Participant’s consent.

 

I.                Notices.  All notices or
communications required or permitted to be given under this Plan shall be given
in writing and signed by the appropriate party, dated, and shall be effective on
the date such notice or communication is delivered to the executive offices of the
Company or sent to the last address provided by a Participant to the Company, as
the case may be.

 

J.             Captions.  Captions of the
various sections herein are solely for the convenience of the parties and shall
not affect or control the meaning or construction of this Plan.

 

15Exhibit 4.2

 

SEE NOTE

 

	
  NUMBER

  	
   

  	
  

  	
  SHARES

  
	
  SSAG

  

  

  	
   

  
	
  NUMBER

  	
   

  	
  forward
  faster

  	
  SHARES

  

 

	
  INCORPORATED
  UNDER THE LAWS

  OF THE STATE OF DELAWARE

  	
  SSA GLOBAL TECHNOLOGIES, INC.

  	
  CUSIP
  78465P 10 8

  SEE REVERSE FOR CERTAIN DEFINITIONS

  

 

 

This Certifies that 

 

 

 

 

is the record holder of 

 

 

FULLY PAID AND NONASSESSABLE SHARES OF COMMON STOCK, $0.01 PAR VALUE,
OF

 

SSA GLOBAL TECHNOLOGIES, INC.

 

transferable on the books of the Corporation
by the holder hereof in person or by duly authorized attorney upon surrender of
this certificate properly endorsed. This certificate is not valid until
countersigned by the Transfer Agent and registered by the Registrar. 

 

WITNESS the facsimile seal of
the Corporation and the facsimile signatures of its duly authorized officers. 

 

Dated: 

 

 

	
  /s/
  Kirk Isaacson

  	
  

  	
  /s/
  Michael Greenough

  
	
  EXECUTIVE
  VICE PRESIDENT, GENERAL COUNSEL

  AND SECRETARY

  	
  CHAIRMAN
  OF THE BOARD, PRESIDENT

  AND CHIEF EXECUTIVE OFFICER

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COUNTERSIGNED AND
  REGISTERED:

  
	
   

  	
  THE BANK OF NEW YORK

  
	
   

  	
  TRANSFER AGENT AND REGISTRAR

  	
   

  
	
   

  	
  BY

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  AUTHORIZED SIGNATURE

  	
   

  
						

 

 

SSA GLOBAL TECHNOLOGIES, INC. 

 

The Corporation shall furnish
without charge to each stockholder who so requests a statement of the powers,
designations, preferences and relative, participating, optional, or other
special rights of each class of stock of the Corporation or series thereof and
the qualifications, limitations or restrictions of such preferences and/or
rights. Such requests shall be made to the Corporation’s Secretary at the
principal office of the Corporation. 

 

KEEP THIS CERTIFICATE IN A
SAFE PLACE. IF IT IS LOST, STOLEN, OR DESTROYED THE CORPORATION WILL REQUIRE A
BOND OF INDEMNITY AS A CONDITION TO THE ISSUANCE OF A REPLACEMENT CERTIFICATE. 

 

The following abbreviations,
when used in the inscription on the face of this certificate, shall be
construed as though they were written out in full according to applicable laws
or regulations: 

 

	
  TEN COM

  	
  —

  	
  as tenants in common

  	
  UNIF GIFT MIN ACT —

  	
  Custodian

  
	
  TEN ENT

  	
  —

  	
  as tenants by the entireties

  	
   

  	
  (Cust)

  	
  (Minor)

  
	
  JT TEN

  	
  —

  	
  as joint tenants with right of

  	
   

  	
  under Uniform Gifts to Minors

  
	
   

  	
   

  	
  survivorship and not as tenants

  	
   

  	
  Act

  
	
   

  	
   

  	
  in common

  	
   

  	
  (State)

  
	
   

  	
   

  	
   

  	
  UNIF TRF MIN ACT —

  	
  Custodian (until age       )

  
	
   

  	
   

  	
   

  	
   

  	
  (Cust)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  under Uniform Transfers

  
	
   

  	
   

  	
   

  	
   

  	
  (Minor)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  to Minors Act

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  (State)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
								

 

Additional abbreviations may
also be used though not in the above list.

 

For Value Received,                                                                                       
hereby sell(s), assign(s) and transfer(s) unto

 

	
  PLEASE INSERT SOCIAL
  SECURITY OR OTHER

  	
   

  
	
  IDENTIFYING NUMBER OF
  ASSIGNEE

  	
   

  

 

 

 

	
   

  
	
  (PLEASE PRINT OR TYPEWRITE
  NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE)

  

 

	
   

  

 

 

	
   

  

 

 

	
   

  	
  Shares

  
	
  of the common stock represented by the within Certificate, and do hereby
  irrevocably constitute and appoint

  

 

	
   

  	
  Attorney

  
	
  to transfer the said stock on the books of the within named
  Corporation with full power of substitution in the premises.

  

 

 

	
  Dated

  	
   

  	
   

  

 

 

	
  X

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  X

  	
   

  	
   

  
	
  NOTICE:

  	
   

  	
  THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS
  WRITTEN UPON THE FACE OF THE CERTIFICATE IN EVERY PARTICULAR, WITHOUT
  ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATEVER.

  

 

 

Signature(s) Guaranteed

 

 

	
  By

  	
   

  	
   

  
	
   

  	
  THE SIGNATURE(S) MUST BE GUARANTEED BY AN ELIGIBLE GUARANTOR
  INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT
  UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM),
  PURSUANT TO S.E.C. RULE 17Ad-15.

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