Document:

Exhibit 10.1

 

EMPLOYMENT
AGREEMENT

 

[Paul
Meyer]

 

THIS AGREEMENT is
made and entered into as of the 31st day of October 2005, by
and between Shuffle Master, Inc., a Minnesota corporation (the “Company”),
and Paul Meyer (the “Employee”), a resident of the State of Nevada.

 

RECITALS:

 

A.            The
Company is in the business of developing, manufacturing, distributing and
otherwise commercializing card shufflers, table games (both live and
electronic) and related gaming equipment and technology systems throughout the
world (the “Business”).

 

B.            Company
and Employee want to create an at-will employment relationship that protects
the Company with appropriate confidentiality and non-compete covenants, and
compensates and rewards the Employee for performing his obligations for the
full term of this contract or such shorter term, as may be determined in
accordance with the terms and conditions of this Agreement.

 

C.            The
Company and Employee desire that Employee be employed by the Company on the
terms and conditions of this Agreement.

 

AGREEMENT

 

In consideration of the mutual promises
contained herein, Employee and the Company agree as follows:

 

1.             Employment.  The Company hereby employs Employee as its
President and Chief Operating Officer reporting to the Chief Executive Officer
of the Company.  Employee shall perform
the normal duties of that position. 
Subject to the other terms and conditions hereof, Employee’s employment
under this Agreement with the Company is for an initial term of three years
(the “Term”), beginning November 1, 2005 (the “Commencement Date”),
through October 31, 2008.

 

2.             Salary, Bonus and Benefits.

 

a.               From the
Commencement Date and if employed through October 31, 2006, Employee shall
be paid an annual base salary of three hundred thousand dollars ($300,000) from
November 1, 2005 through January 31, 2006 and then three hundred
twenty-five thousand dollars ($325,000) from February 1, 2006 through October 31,
2006, paid in the same intervals as other Employees of the Company; and if
employed through October 31, 2006, Employee will also be eligible to
receive an executive bonus in accordance with the terms and conditions of the
executive bonus program authorized by the Board of Directors of the Company
(the “Board”) for other senior management executives of the Company for fiscal
year 2006, in a range of percentages, but with a target bonus of 50% of
Employee’s base salary.

 

 

b.              For any subsequent
year after the first year of this Agreement, Employee will receive an annual
base salary of no less than his annual base salary for the immediately prior
year of this Agreement, and will also be eligible to participate in an
executive bonus program and/or in an individual performance bonus program as
authorized by the Board for said period.

 

c.               Any future stock option
grants, if any, will be at the sole discretion of the Board.

 

d.              Any stock options
granted at any time to Employee shall vest in accordance with the terms and
conditions set forth in the applicable grant by the Board and, as otherwise may
be applicable, with any relevant terms and conditions of Shuffle Master, Inc.’s
2004 Equity Incentive Plan (the “Plan”) or any subsequent plan.

 

e.               The Company agrees
to provide Employee with the same benefits it provides all of the other members
of its senior management executive team. 
Employee will not, however, be eligible to participate in the Company’s
non-executive bonus program.

 

f.                 Employee’s salary
is set in the expectation that Employee’s full professional time will be
devoted to Employee’s duties hereunder.

 

g.              During Employee’s
employment with the Company, the Company will promptly pay or reimburse
Employee for reasonable travel and other expenses incurred by Employee in the
furtherance of or in connection with the performance of Employee’s duties.  Such reimbursement will be in accordance with
Company policies in existence from time to time.

 

3.             Outside
Services or Consulting.  Employee
shall devote Employee’s full professional time and best professional efforts to
the Company.  Employee may render other professional
or consulting services to other persons or businesses from time to time during
the Term, only if Employee meets all of the following requirements:

 

a.               The services do not
interfere in any manner with the Employee’s ability to fulfill all of his
duties and obligations to the Company.

 

b.              The services are not
rendered to any business which may compete with the Company in any area of the
Business or do not otherwise violate paragraph 4 hereof.

 

c.               The services do not
relate to any products or services, which form part of the Business.

 

d.              Employee informs and
obtains the prior consent of the Chief Executive Officer of the Company.

 

4.             Non-competition.  In consideration of the provisions of this
Agreement, Employee hereby agrees that he shall not, during the term of his
full-time employment and for a period of thirty-six (36) months thereafter:

 

a.               Directly
or indirectly own, manage, operate, participate in, consult with or work for
any business, which is engaged in the Business anywhere in the United States or
Canada.

 

 

b.              Either
alone or in conjunction with any other person, partnership or business,
directly or indirectly, solicit, hire, or divert or attempt to solicit, hire or
divert any of the Employees, independent contractors, or agents of the Company
(or its affiliates or successors) to work for or represent any competitor of
the Company (or its affiliates or successors), or to call upon any of the
customers of the Company (or its affiliates or successors).

 

c.               Directly
or indirectly provide any services to any person, company or entity, which is
engaged in the Business anywhere in the United States or Canada.

 

5.             Confidentiality;
Inventions.

 

a.               Employee
shall fully and promptly disclose to the Company all inventions, discoveries,
software and writings that Employee may make, conceive, discover, develop or
reduce to practice either solely or jointly with others during Employee’s
employment with the Company, whether or not during usual work hours.  Employee agrees that all such inventions,
discoveries, software and writing shall be and remain the sole and exclusive
property of the Company, and Employee hereby agrees to assign, and hereby
assigns all of Employee’s right, title and interest in and to any such
inventions, discoveries, software and writings to the Company.  Employee agrees to keep complete records of
such inventions, discoveries, software and writings, which records shall be and
remain the sole property of the Company, and to execute and deliver, either
during or after Employee’s employment with the Company, such documents as the
Company shall deem necessary or desirable to obtain such letters patent,
utility models, inventor’s certificates, copyrights, trademarks or other
appropriate legal rights of the United States and foreign countries as the
Company may, in its sole discretion, elect, and to vest title thereto in the
Company, its successors, assigns, or nominees.

 

b.              “Inventions,”
as used herein, shall include inventions, discoveries, improvements, ideas and
conceptions, developments and designs, whether or not patentable, tested,
reduced to practice, subject to copyright or other rights or forms of
protection, or relating to data processing, communications, computer software
systems, programs and procedures.

 

c.               Employee
understands that all copyrightable work that Employee may create while employed
by the Company is a “work made for hire,” and that the Company is the owner of
the copyright therein.  Employee hereby
assigns all right, title and interest to the copyright therein to the Company.

 

d.              Employee
has no inventions, improvements, discoveries, software or writings useful to
the Company or its subsidiaries or affiliates in the normal course of business,
which were conceived, made or written prior to the date of this Agreement.

 

e.               Employee
will not publish or otherwise disclose, either during or after Employee’s
employment with the Company, any published or proprietary or confidential
information or secret relating to the Company, the Business, the Company’s
operations or the Company’s products or services.  Employee will not publish or otherwise
disclose proprietary or confidential information of others to which

 

 

Employee has
had access or obtained knowledge in the course of Employee’s employment with
the Company.  Upon termination of
Employee’s employment with the Company, Employee will not, without the prior
written consent of the Company, retain or take with Employee any drawing,
writing or other record in any form or nature which relates to any of the
foregoing.

 

f.                 Employee
understands that Employee’s employment with the Company creates a relationship
of trust and confidence between Employee and the Company.  Employee understands that Employee may
encounter information in the performance of Employee’s duties that is confidential
to the Company or its customers.  For the
Term hereof, and until the information falls into the public domain, Employee
agrees to maintain in confidence all information pertaining to the Business or
the Company to which Employee has access including, but not limited to,
information relating to the Company’s products, inventions, trade secrets, know
how, systems, formulas, processes, compositions, customer information and
lists, research projects, data processing and computer software techniques, programs
and systems, costs, sales volume or strategy, pricing, profitability, plans,
marketing strategy, expansion or acquisition or divestiture plans or strategy
and information of similar nature received from others with whom the Company
does business.  Employee agrees not to
use, communicate or disclose or authorize any other person to use, communicate
or disclose such information orally, in writing, or by publication, either
during Employee’s employment with the Company or thereafter except as expressly
authorized in writing by the Company unless and until such information becomes
generally known in the relevant trade to which it relates without fault on
Employee’s part, or as required by law.

 

6.             Termination or Non-Extension by Company Without Just Cause

 

a.               Employee’s
employment by the Company is “at will;” therefore, subject to the terms and
conditions hereof, the Company may terminate Employee’s full-time employment at
any time either with or without just cause. 
In the event of any termination of Employee’s full-time employment with
the Company without just cause, or in the event that Employee’s full-time
employment is not extended or renewed beyond the Term on terms at least as
favorable to Employee as Employee is receiving during the last year of the Term,
then Employee will remain bound to the covenants not to compete and
confidentiality obligations of paragraphs 4 and 5 of this Agreement, according
to their terms, and each one of the following shall apply:

 

i.      Employee
shall be paid an amount equal to eighteen (18) months of his then monthly base
salary paid over a period of thirty-six (36) months from Employee’s termination
in equal monthly installments and at the same intervals as other Employees of
the Company are then being paid their base salaries;

 

ii.     Employee
shall continue to receive, during the thirty (36) months from Employee’s
termination, all medical insurance and any other benefits or insurance
coverages which Employee would have received had his employment not been so
terminated, or not extended, provided however, if the Employee is not eligible
for said medical insurance, the Company shall pay the COBRA premiums for
continuation coverage during the said thirty-six (36) month period (for the
avoidance of doubt, the Company and Employee agree that it is the intent of
this language and

 

 

of this
paragraph 6(a), and that this language means, that Employee will continue to
vest in previous stock option and restricted stock awards during said 36-month
period after Employee’s termination);

 

iii.    Employee
shall receive additional compensation for his covenant not to compete equal to
the average annual bonus which Employee has received for the three most recent
fiscal years during which Employee was employed, provided however that if
Employee has not been employed for three full fiscal years, then the Company
shall use the actual number of full fiscal years that the Employee was
employed.  The amount due under this
paragraph 6(a)(iii) shall be paid in the same intervals as other Employees
of the Company are then being paid their base salaries;

 

iv.    Notwithstanding
anything else contained herein to the contrary, during the 36-month period
referred to in this paragraph 6, Employee shall remain a part-time employee of
the Company’s and, subject to Employee’s other professional duties, shall be
available to the Chief Executive Officer of the Company.

 

b.              For
purposes hereof, any of the following acts or events shall, at Employee’s
option, constitute a termination without just cause under this paragraph 6 (but
the following is not the entire list of reasons or event which may constitute a
“termination with just cause”):

 

i.      any
material diminution or reduction of Employee’s title, position, duties or
responsibilities, except as caused by the acts or omissions of Employee; or

 

ii.     any
material breach by Company of this Agreement that is not cured within thirty
(30) days after written notice by Employee of such breach.

 

c.               In
the event that, at the end of the Term, the Company elects not to extend or
renew Employee’s full-time employment beyond the Term on terms at least as
favorably to Employee as Employee is receiving during the last fiscal year of
the Term, then such non-renewal shall be treated as a termination without
cause.  In such case, the provisions of
paragraphs 6(a)(i) through (iv) shall apply and Employee shall be
bound to the provisions of paragraphs 4 and 5 hereof for the period of time
during which Employee is being paid pursuant to paragraph 6(a).

 

7.             Early Termination by Company for Just Cause.  The Company may terminate Employee for just
cause.  In the event that the Company
terminates the Employee for just cause, the Employee will remain bound under
the provisions of paragraphs 4 and 5, but will not be entitled to any
compensation or benefits following his termination of employment under this
Agreement.  Termination for “just cause”
shall mean:

 

a.               dishonesty
as to a matter which is materially injurious to the Company;

 

b.              the
commission of a willful act or omission intended to materially injure the
business of the Company;

 

c.               a
violation of any of the material provisions of Sections 4 and/or 5 hereof; or

 

 

d.              a
determination in good faith by the Board that the Employee has failed to make a
good faith effort to fully perform his duties as assigned by either the CEO or
the Board, which failure is not remedied by the Employee within thirty (30)
days following the CEO’s specific written notice stating such alleged failure
from the Board;

 

8.             Voluntary
Termination by Employee.

 

a.               In the event Employee
voluntarily terminates, his employment with the Company, Employee will remain
bound under the provisions of paragraphs 4 and 5 hereof, but will not be
entitled to receive any compensation and benefits following his termination of
employment except for any payments or benefits required by law.

 

b.              Voluntary
termination means an intentional termination by the Employee without good
reason and without pressure by the Company; and further, provided that there
was not a material breach of this Agreement by the Company, prior to any such
termination which remains uncured.

 

9.             Cooperation
with Change in Control. 
Employee will reasonably cooperate with the Company in the event of a
change in control.

 

10.           No
Conflicting Agreements. 
Employee has the right to enter into this Agreement, and hereby confirms
Employee has no contractual or other impediments to the performance of Employee’s
obligations including, without limitation, any non-competition or similar
agreement in favor of any other person or entity.

 

11.           Company
Policies.  During the term of
Employee’s employment, Employee shall engage in no activity or employment which
may conflict with the interest of the Company, and Employee shall comply with
all policies and procedures of the Company including, without limitation, all
policies and procedures pertaining to ethics.

 

12.           Independent
Covenants.  The covenants and
agreements on the part of the Employee contained in paragraphs 4 and 5 hereof
shall be construed as agreements independent of any other provision in this
Agreement; thus, it is agreed that the relief for any claim or cause of action
of the Employee against the Company, whether predicated on this Agreement or
otherwise, shall be measured in damages and shall not constitute a defense or
bar to enforcement by the Company of those covenants and agreements.

 

13.           Injunctive
Relief.  In recognition of the
irreparable harm that a violation by Employee of any of the covenants contained
in either paragraphs 4 or 5 hereof would cause the Company, the Employee agrees
that, in addition to any other relief afforded by law, an injunction (both
temporary and permanent) against such violation or violations may be issued
against him or her and every other person and entity concerned thereby, it
being the understanding of the parties that both damages and an injunction
shall be proper modes of relief and are not to be considered alternative
remedies; provided, however, that the issue and amount, if any, of damages
shall be litigated through arbitration as required by paragraph 20 below.  Employee consents to the issuance of such
injunctive relief without the posting of a bond or other security.

 

14.           Notice.  Any notice sent by registered mail to the
last known address of the party to whom such notice is to be given shall
satisfy the requirements of notice in this Agreement.

 

 

15.           Entire
Agreement.  This Agreement is
the entire agreement of the parties hereto concerning the subject matter hereof
and supersedes and replaces in its entirety any oral or written existing agreements
or understandings between the Company and the Employee relating generally to
the same subject matter.  Company and
Employee hereby acknowledge that there are no agreements, promises,
representations or understandings of any nature, oral or written, regarding
Employee’s employment, apart from this Agreement, and Employee acknowledges
that no promises, representations or agreements not contained in this Agreement
have been made or offered by the Company. 
This Agreement supersedes the employment agreement between the Company
and the Employee, dated as of September 24, 2003.

 

16.           Severability.  It is agreed and understood by the parties
hereto that if any provision of this Agreement should be determined by an
arbitrator or court to be unenforceable in whole or in part, it shall be deemed
modified to the minimum extent necessary to make it reasonable and enforceable
under the circumstances, and the court shall be authorized by the parties to
reform this Agreement in the least way necessary in order to make it reasonable
and enforceable.

 

17.           Governing
Law.  This Agreement shall be
construed and enforced in accordance with the laws of the State of Nevada,
without giving effect to the principles of conflicts of laws thereof.

 

18.           Heirs,
Successors and Assigns.  The
terms, conditions, obligations, agreements and covenants hereof shall extend
to, be binding upon, and inure to the benefit of the parties hereto and their
respective heirs, personal representatives, successors, assigns, and/or
acquirers, including any entity which acquires, merges with, or obtain control
of the Company.

 

19.           Waiver of
Breach.  The waiver by either
the Company or the Employee of any breach of any provision of this Agreement
shall not operate as or be deemed a waiver of any subsequent breach by either
the Company or the Employee.

 

20.           Dispute
Resolution.  Except for the
Company’s right (either pursuant to paragraph 13 hereof or otherwise) to
injunctive relief to enforce the provisions of paragraphs 4 and 5 hereof, the
exclusive forum for the resolution of any dispute arising under this Agreement
or any question of interpretation regarding the provisions of this Agreement
(other than disputes relative to paragraphs 4 or 5 hereof) shall be resolved by
arbitration, to be held in Clark County, Nevada, in accordance with the rules of
the American Arbitration Association (“AAA”). 
Such arbitration shall be before an arbitrator, chosen in accordance
with the rules then in effect of the AAA. 
In the event the Employee and Company fails within a reasonable period
of time to agree on an arbitrator, the arbitrator shall be chosen by the
AAA.  The decision of the arbitrator
shall be final, conclusive and binding upon the Company and Employee.

 

21.           Amendment.  This Agreement may be amended only by a
document in writing signed by both the Employee and a Corporate Officer (other
than Employee) of the Company, and no course of dealing or conduct of the
Company shall constitute a waiver of any of the provisions of this Agreement.

 

22.           D & O Policy. 
During Employee’s employment with the Company, the Company shall
maintain director and officer liability insurance.

 

 

23.           Non-Disparagement and Cooperation.

 

a.               During any period
of time wherein the Company is paying any base salary to Employee, whether during
the Term hereof or during any time after the termination or expiration of this
Agreement, and for a period of three (3) years thereafter, Employee shall
not disparage or otherwise make any negative comments about the Company, its
policies, products, Employees or management. 
The Company may enforce these non-disparagement provisions by resort to
injunctive relief as set forth in paragraph 13, in addition to any other
damages that it may be entitled to under this Agreement or otherwise at law.

 

b.              Employee agrees to
fully cooperate with the Company and its affiliates during the entire scope and
duration of any litigation or administrative proceedings involving any matters
with which Employee was involved during Employee’s employment with the Company.

 

c.               In the event
Employee is contacted by parties or their legal counsel involved in litigation
adverse to the Company or its affiliates, Employee (i) agrees to provide
notice of such contact as soon as practicable; and (ii) acknowledges that
any communication with or in the presence of legal counsel for the Company
(including without limitation the Company’s outside legal counsel, the Company’s
inside legal counsel, and legal counsel of each related or affiliated entity of
the Company) shall be privileged to the extent recognized by law and, further,
will not do anything to waive such privilege unless and until a court of
competent jurisdiction decides that the communication is not privileged.  In the event the existence or scope of the
privileged communication is subject to legal challenge, then the Company must
either waive the privilege or pursue litigation to protect the privilege at the
Company’s sole expense.

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement as of the day, month and year
first above written.

 

 

	
  EMPLOYER:

  	
  EMPLOYEE:

  
	
   

  	
   

  
	
  SHUFFLE MASTER, INC.

  	
  PAUL MEYER

  
	
   

  	
   

  
	
  By: 

  	
    /s/ Mark L. Yoseloff

  	
   

  	
  By: 

  	
    /s/ Paul Meyer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Its:

  	
    CEOExhibit 10.1

 

	
  

  	
   

  	
   

  	
  Corporate Headquarters

  500 West Madison, Suite 2200

  Chicago, Illinois 60661 USA

  www.ssaglobal.com

  	
  T +1-312-258-6000

  F +1-312-474-7500

  

 

GENERAL
RELEASE AND ADDITIONAL TERMS

 

This
General Release and Additional Terms (“General Release”) is made as of this 4th
day of November, 2005, by and between SSA Global Technologies, Inc. (“Company”)
and John Walles (“You”).

 

In consideration of the
severance benefits and other provisions described in the attached Memorandum of
Understanding dated as of the same date as this General Release (“Memorandum”),
You agree to the terms of this General Release.

 

You understand and agree
that this General Release will extend to all claims, demands, liabilities and
causes of action of every kind, nature and description whatsoever, whether
known, unknown or suspected to exist, which You ever had or may now have
against the Company, its predecessors successors or assigns, and their
respective officers, directors, agents and employees, including, but not
limited to, claims based upon wrongful or tortious termination, public policy
or related matters, implied or express employment contracts and/or estoppel;
allegations of discrimination and/or retaliation under Title VII of the Civil
Rights Act of 1964, The Civil Rights Act of 1866, The Rehabilitation Act of
1973, The Civil Rights Acts of 1991, The Illinois Human Rights Act, The Family
Medical Leave Act, The Age Discrimination In Employment Act, The Older Workers
Benefit Protection Act, The Employee Retirement Income Security Act and any
other federal, state, or local statute or regulation regarding discrimination
in employment or termination of employment; any claims or allegations brought
under The Fair Labor Standards Act, The Illinois Wage Payment and Collection
Act, The Illinois Unemployment Insurance Act, and any other federal or state
statute or regulation for non-payment of wages, bonuses, commissions or other
compensation; and for libel, slander, breach of contract, breach of implied
covenant of good faith and fair dealing, assault, battery, intentional
infliction of emotional distress, tort or any other theory under the common law
of any state.  This General Release,
however, shall not preclude claims against Company for violation of the
obligations or duties which arise out of this General Release or which
otherwise arise among the parties after the date hereof.

 

The
Company, on behalf of itself and its successors and assigns, releases You from
any and all claims it may have against You as of the date of this General
Release, whether known or unknown, anticipated or unanticipated; provided,
however, this Paragraph does not apply to or adversely affect any claims the
Company  may have against You which
allege or involve the following: (i) gross negligence or willful
misconduct by you in your duties towards the Company, its subsidiaries, and
affiliates; (ii) a willful misconduct by You in your duties towards the
Company, its subsidiaries and affiliates, in connection with a matter is which
You have a material conflict of interest; (iii) a violation of criminal
law, unless You have reasonable cause to believe that your conduct was lawful
or no reasonable cause to believe that your conduct was unlawful; or (iv) obligations
owed by You to the Company pursuant to this General Release.  Nothing in this Paragraph shall be construed
by You of any liability to the Company or of any wrongdoing under federal,
state or local law.

 

 

The
Company shall indemnify, defend and hold and save You harmless from any and all
actions and causes of actions, claims, demands, liabilities, losses, damages
and expenses, of whatsoever kind and nature, including judgments, interest, and
attorney’s fees and all other reasonable costs, expenses, and charges which you
shall or may at any time, of from time to time, subsequent to the date of this
General Release, sustain or incur, or become subject to by reason of any claim
or claims against You for actions taken during your employment with the Company
within the scope of your employment, except for any actions that are the result
of any gross negligence or willful misconduct by You in your duties towards the
Company, is subsidiaries and affiliates. 
You shall promptly notify Company and its General Counsel of adverse
claims or threatened or actual lawsuits, You shall provide reasonable
cooperation to the Company, its attorneys and agents to the extent possible.

 

The
Company agrees that it will remove You as an officer, director and/or agent
from any and all Company related entities, including any required filings with
applicable authorities.  If required from
time to time, You shall provide reasonable cooperation to the Company, its
attorneys and agents to the extent possible.

 

By executing this General
Release, You agree that all Company property in your possession or control has
been or will be turned in to the Company prior to receiving any severance
benefits under the Memorandum.  Such
property shall include, without limitation, all office equipment, keys, computer
software or hardware, documents, internal memoranda and records of any nature,
together with all copies thereof, which relate in any way to the Company’s
business or operation.

 

You further acknowledge
that, in the course of your employment with the Company, You have come to know
or have access to certain information which is proprietary to the Company,
including, but not limited to, confidential personnel information, tenant
information, financial information and projects, computer software and
databases, information concerning pending or potential transactions, marketing
techniques and strategies, and other confidential information of the Company or
unrelated parties with whom the Company conducts business (collectively “Confidential
Information”).  As consideration for the
severance benefits set forth in the Memorandum, You agree to abide by any
confidentiality undertaking which You may have entered into with the Company
(including, without limitation, any non-solicitation and/or non-compete
provision that may be made a part of any such undertaking), not to disclose any
Confidential Information to anyone, and not to use Confidential Information for
any personal or business purpose.

 

It is further understood
and agreed that the remedy at law for breach of the Memorandum and/or this
General Release shall be inadequate, and the Company shall be entitled to
injunctive relief.

 

It is also understood and
agreed that no promises or representations have been made by the Company
respecting the subject matter hereof other than those expressly set forth herein
and in the Memorandum.  The Memorandum
and this General Release constitute the entire agreement between the parties,
and supersede all prior agreements, promises, representations and
understandings, written or oral, between the parties respecting the subject
matter hereof.  The parties agree that in
the event that any provision herein or the memorandum is determined by a court
of competent jurisdiction to be illegal or invalid, such provisions will be
severed to the extent necessary to render the remaining provisions of the
Memorandum and this General Release enforceable.  Further, any modifications or amendments may
be made only based on a written agreement between the parties.

 

 

It is
further understood that You agree to maintain the confidentiality of the terms
of the Memorandum and this General Release, including nondisclosure of the
Memorandum and this General Release or the terms therein, to any former,
current, or future employees of the Company, it being understood that this
provision shall not preclude You from discussing the contents of the Memorandum
and/or this General Release with any spouse, attorney or any tax advisor,
except that they are to be advised of the confidentiality requirements herein.

 

You
are entitled to consider this offer for at least twenty-one (21) days prior to
executing it and that in the event that You have executed the Memorandum and
this General Release within fewer than the twenty-one (21) days of the date of
its delivery to You, You acknowledge that your decision to do so was entirely
voluntary and that You had the opportunity to consider the Memorandum and this
General Release for the entire twenty-one (21) day period.  We also want to advise You of your right to
consult with legal counsel prior to executing a copy of this General Release.

 

You
are allowed to revoke this General Release within seven (7) days of the
date of your execution of it.

 

This
General Release shall not be effective until the seven-day revocation period
has expired.

 

You
may revoke this General Release within the seven-day revocation period by
giving written notice to:

 

SSA
Global Technologies, Inc.

Attention:
Office of General Counsel

500
West Madison Avenue, Suite 2200

Chicago,
Illinois 60661

 

Finally, this is to
expressly acknowledge:

 

•                  You
have received the memorandum and this General Release.

 

•                  You
have been given a minimum of twenty-one (21) days in which to review the
Memorandum and this General Release, and the Memorandum and this General
Release will be binding and enforceable unless revoked within seven (7) days
after signing these documents.

 

•                  You
affirm that no other promises or agreements of any kind have been made to or
with You by any person or entity whatsoever to cause You to sign the Memorandum
and this General Release, and that You fully understand the meaning and intent
of the Memorandum and this General Release.

 

•                  You
state and represent that You have been advised in writing of your right to
consult with an attorney prior to agreeing to execute the Memorandum and this
General Release.  You further state and
represent that You have carefully read the memorandum and this General Release,
understand the contents herein, and freely and voluntarily assent to all of the
terms and conditions and sign your name of your own free act.

 

•                  You
understand You have valid and binding obligations to the Company under the
Patent and Confidential Information Agreement or any similar agreement that You
previously executed with the Company.

 

1

 

•                  You
understand and agree that the compensation and benefits described in the
Memorandum may offer You consideration greater than that to which You would
otherwise be entitled.

 

•                  You
understand that You are waiving all known and unknown claims that You may have
to date.

 

•                  You
understand that You are not waiving any claims or rights that may arise after
the date You execute this General Release.

 

THE COMPANY’S OFFER UNDER THIS GENERAL RELEASE EXPIRES ON THE 22nd DAY
AFTER YOUR RECEIPT OF THIS GENERAL RELEASE. 
IF THE COMPANY DOES NOT RECEIVE YOUR COUNTER-SIGNED SIGNATURE ON THE
MEMORANDUM AND GENERAL RELEASE ON OR BEFORE THE 22nd DAY AFTER YOUR RECEIPT OF
THIS RELEASE, THIS OFFER IS NULL AND VOID. 
NOTHING IN THIS PARAGRAPH AFFECTS YOUR REVOCATION RIGHTS DESCRIBED
ABOVE.

 

THIS DOCUMENT INCLUDES A RELEASE BY YOU OF CERTAIN RIGHTS.  YOU SHOULD CONSULT YOUR ATTORNEY PRIOR TO
SIGNING THIS RELEASE.

 

 

ACCEPTED
AND AGREED:

 

 

	
   John Walles

  	
   

  
	
  Name

  	
   

  
	
   

  	
   

  
	
  /s/ John Walles

  	
   

  
	
  Signature

  	
   

  
	
   

  	
   

  
	
  11/4/05

  	
   

  
	
  Date

  	
   

  

 

2

 

	
  

  	
   

  	
   

  	
  Corporate Headquarters

  500 West Madison, Suite 2200

  Chicago, Illinois 60661 USA

  www.ssaglobal.com

  	
  T +1-312-258-6000

  F +1-312-474-7500

  

 

Memorandum of Understanding

 

To:          John Walles

From:      SSA Global Technologies, Inc.

cc:           Mike Greenough, Kirk Isaacson

Date:       November 4, 2005

Re:          Termination
of Employment

 

Pursuant to discussions
between your person and Mike Greenough, it is agreed that your termination of
employment at SSA Global Technologies, Inc. will include the following:

 

1.  Termination Date:  Your termination date of employment will be
the close of business, October 31, 2005 (“Termination Date”).

 

2.  Compensation:  Your current compensation will be paid
through your Termination Date.  For the
avoidance of doubt, You will also be paid, in the ordinary course of SSA Global’s
business, for any bonus amount earned but not yet paid with respect to SSA
Global’s first quarter ending on October, 31, 2005.  In addition, You will also receive “pay in
lieu of any unused vacation days,” to be calculated in accordance with SSA
Global’s policies and procedures.

 

In addition to the
foregoing, within thirty (30) days from your Termination Date, the Company will
remit to You the sum of $6,000; such amount intended to assist You in obtaining
independent medical coverage after your Termination Date.

 

3.  Severance:  Provided that You enter into an offer letter,
agreement, subcontractor agreement or other document or arrangement with an
affiliate of SSA Global (“Company”) within thirty (30) days from your
Termination Date, we have agreed that You will not be entitled to any severance
as described in Section 1 of the Agreement Governing Severance Obligations
and Termination of Employment, as previously entered into between You and SSA
Global, dated December 1, 2004 (“Agreement”).  If you are unable to reach such an agreement
with Company within thirty (30) days from your Termination Date, You will
advise SSA Global in writing and either:

 

(i)  The initial
thirty (30) day period shall be automatically extended for successive thirty
(30) day periods for so long as You remain in negotiations with Company; or

 

(ii) You will advise
SSA Global in writing that You have elected not to enter into or further pursue
an offer letter, agreement, subcontractor agreement or other document or
arrangement with Company, in which event your severance entitlement, as
described in Section 1 of the referenced Agreement, will remain intact and
the related amounts will be determined and paid to You pursuant to the terms
and conditions of the Agreement, retroactive to your Termination Date.

 

 

4.  Treatment of Stock Options/ Lock-Up/Insider
Trading:  You agree,
that the vesting and exercise of any stock options awarded to You together with
the related rights and the terms and conditions governing the exercise of such
rights (including any subsequent trading in SSA Global stock) shall be (a) determined
in accordance with SSA Global’s 2003 Equity Incentive Plan and your 2003 Equity
Incentive Plan Stock Option Agreement, dated July 31, 2003, and (b) subject
to the terms, conditions and related limitations set forth in (i) your
Lock-Up Agreement, dated February 10, 2004; and (ii) SSA Global’s
Insider Trading Policy.  For the
avoidance of doubt, it is agreed that:

 

(a)              Your termination of
employment at SSA Global is “without cause”, thereby entitling You with such
vesting and exercise rights as set forth in Paragraph 4(b) of your 2003
Equity Incentive Plan Stock Option Agreement. 
However, You agree that such rights are subject to the terms of your
referenced Lock-Up Agreement.

 

(b)             The 6-month Lock-Up
period as set forth in your Lock-Up Agreement expires on November 22, 2005
and it is agreed that the referenced Lock-Up Agreement will not thereafter be
extended as it applies to You.

 

(c)              Pursuant to SSA
Global’s Insider Trading Policy, in part You are precluded, now and in the
future, from trading in any shares of SSA Global stock if such trade is based
on inside information gained by you as a result of your employment at SSA
Global and which is not generally publicly available at the time of such trade.

 

5.  Other:  SSA Global acknowledges that notwithstanding
your actual Termination Date of employment (October 31, 2005), beginning
on Monday, October 10, 2005 and continuing through your Termination Date (a) You
have not participated in any of pre-scheduled weekly meetings of the company’s
executive committee; and (b) your primary responsibilities have been
limited to the winding down and/or transition of your then current job-related
activities.

 

Finally, by signing where
indicated below, You agree that this Memorandum together with the terms set
forth in the related General Release and General Terms Agreement contain the
entire understanding between the parties relating to your termination of
employment.

 

	
  Regards,

  
	
   

  
	
  /s/ Kirk Isaacson

  	
   

  
	
  Kirk Isaacson

  
	
  EVP & General
  Counsel

  

 

 

	
   

  	
  Agreed to By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ John Walles

  	
  11/04/05

  	
   

  
	
   

  	
  John Walles

  	
  Date

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