Document:

Exhibit
10.2

 

	
  

  	
  

  GLOBALTECHNOLOGIESTM

  

 

 

April 30, 2003

 

Stephen P. Earhart

931 Oxford Drive

Deerfield, Illinois 60015

 

Dear Steve:

 

It has been a pleasure
talking with you relative to the career opportunities that are available with
SSA Global Technologies, Inc. (the “Company”). Although the Company has enjoyed
considerable success, we are looking to individuals such as you to play a key
role in putting the Company on its next plateau. We’re convinced that you can
make an immediate impact and are excited about your future growth potential.

 

This letter confirms to you
the Company’s offer of employment. The terms of our offer are as follows: 

 

	
  Position:

  	
   

  	
  Executive Vice President
  and Chief Financial Officer – reporting to the undersigned.

  
	
   

  	
   

  	
   

  
	
  Start
  Date:

  	
   

  	
  June 1, 2003.

  
	
   

  	
   

  	
   

  
	
  Compensation:

  	
   

  	
  Annual Base Salary:  $300,000.

  
	
   

  	
   

  	
  Annual Bonus target:
  $200,000 representing your annual bonus target (or 67% of your annual base
  salary) with the potential (based on the Company’s current plan, subject to
  change annually or otherwise as agreed) for up to two times this amount based
  on the Company’s business performance and objectives, paid in accordance with
  the Company’s executive compensation plan in effect from time to time. During
  your first twelve months of employment, $100,000 of the annual bonus
  potential is guaranteed and any shortfall will be paid following your first
  twelve months of employment.

  
	
   

  	
   

  	
   

  
	
  Stock
  Options:

  	
   

  	
  Pursuant to the terms and
  conditions of the Company’s stock option plan, you shall be granted options to
  purchase one percent (1.0%) of the shares of common stock issued and
  outstanding adjusted for fifteen percent (15%) currently allocated to the
  Company’s stock option plan (par value $0.01), the strike price of which
  shall be determined based on a Company enterprise valuation of $360 million
  dollars. Your options shall vest evenly on a monthly basis over a 4-year
  period in accordance with the Company’s Stock Option Plan and Employee Stock
  Option Agreement.

  
	
   

  	
   

  	
   

  
	
  Work
  Location:

  	
   

  	
  Your home base will be the
  Company’s headquarters located in Chicago, Illinois. During your employment,
  you will be reimbursed for all reasonable travel and living expenses in
  accordance with the next paragraph.

  
	
   

  	
   

  	
   

  
	
  Travel:

  	
   

  	
  It is envisioned that your
  position may require substantial travel. You shall travel by coach airfare
  unless agreed to otherwise or unless provided for in SSA’s then current
  travel policy. For informational purposes, SSA’s current travel policy
  provides that for senior executives such as yourself, travel by business
  class outside of North America is permitted. In accordance with the Company’s
  policies and upon presentment of required receipts, you will be reimbursed
  for all reasonable travel, living and other work-related expenses incurred by
  you in the fulfillment of your job responsibilities.

  
	
   

  	
   

  	
   

  
	
  Vacation:

  	
   

  	
  Four (4) weeks per annum
  with no carry over right.

  

 

500
West Madison, Suite 1600  Chicago, IL
60661  T 312.258.6000  F  312.474.7500  W www.ssagt.com

 

 

	
  Severance:

  	
   

  	
  If the Company terminates
  your employment for any reason other than “for cause” you will receive a
  severance entitlement (“salary continuation”) equivalent to your then current
  base salary (specifically including an additional amount equal to the average
  annual bonus amount paid to you for the prior three (3) year period, or
  portion thereof if your employment is terminated by the Company prior to the
  expiration of three (3) years). This salary continuation is inclusive and in
  lieu of any claimed entitlement to any additional payments, however characterized,
  as may be required by statute, regulation or otherwise. For the purposes of
  clarity “for cause” includes, for example, willful misconduct, gross
  negligence in the performance of your duties, and / or the commission of any
  felony crime involving moral turpitude.

  
	
   

  	
   

  	
   

  
	
  Review:

  	
   

  	
  The current policy, subject
  to change without notice, is that reviews are conducted on an annual basis.

  
	
   

  	
   

  	
   

  
	
  Benefits:

  	
   

  	
  Per summary which will be
  forwarded to you shortly.  This
  summary of benefits highlights the major benefits offered by the Company. All
  benefits are subject to change without notice.

  
	
   

  	
   

  	
   

  
	
  Governing
  Law:

  	
   

  	
  This offer letter (and any
  employment) shall be governed by the laws of the State of Illinois, you
  accept Illinois as the exclusive venue for dispute resolution and submit to
  the exclusive jurisdiction of the Illinois Courts.

  
	
   

  	
   

  	
   

  
	
  Contingencies:

  	
   

  	
  This offer of employment is
  contingent upon your signing of an Employee Confidentiality Agreement
  (attached).

  
	
   

  	
   

  	
   

  
	
  Acceptance:

  	
   

  	
  Your signature below will
  acknowledge your understanding and agreement to this offer of
  employment.  Written acceptance to
  this offer is required within five days of the date of this letter.  The Company reserves the right to withdraw
  this offer without further notice if not accepted by you by this time or if
  any representations  (e.g., job
  references, education) cannot be verified. 
  This offer becomes valid only upon the Company’s final acceptance of
  the signed offer letter (following your signature).

  

 

We look forward to you
joining the Company. Teamwork, quality, people, client satisfaction, focus,
industry knowledge and quality software have all played a significant part in
the Company’s past. We are confident that you will play an important role in
helping our success to continue in the future. Should you have any questions
regarding this offer, please contact me directly.

 

Yours truly,

SSA Global Technologies, Inc.

 

	
  /s/ Michael Greenough

  	
   

  
	
  Michael Greenough

  
	
  Chairman and CEO

  

 

The undersigned accepts the
above employment offer, agrees that it contains the terms of employment with
the Company, and that there are no other terms, expressed or implied. By
accepting this offer of employment, the undersigned is acknowledging that no
prior employment obligations or other contractual restrictions exist which
preclude employment with the Company. It is further understood that this offer
is confidential and disclosure (other than to my family, financial advisor and
attorney) is subject to termination of employment or withdrawal of this offer.

 

ACCEPTED:

 

 

	
  /s/ Stephen Earhart

  	
   

  	
  April 30, 2003

  	
   

  
	
  Stephen Earhart

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ACCEPTED:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ ILLEGIBLE

  	
   

  	
  April 30, 2003

  	
   

  
	
  SSA Global Technologies, Inc.

  	
   

  	
  DateExhibit
10.3

 

Employment Agreement

Kirk
Isaacson

 

In
consideration of the mutual covenants and conditions contained herein, the
parties intending to be legally bound, agree as follows:

 

Section 1

Employment

 

Employment
– The Company hereby employs Kirk Isaacson “Employee” as Vice President and
General Counsel and Corporate Secretary of SSA Acquisition Corporation the
“Company”, subject to the terms and conditions set forth below.

 

Term
– Except as otherwise provided herein, this Agreement remain in effect for a
period of one from the date hereof (the “Initial Term), and shall, subject to
termination in accordance with the terms hereof, be automatically renewed for
successive one year period(s) (“Renewal Term”).

 

Section 2

Compensation and Benefits

 

Compensation – As compensation for Employee’s
services Employee will receive

Base
Salary @ $260,000 payable in semi-monthly installments

Bonus
@ $20,000 payable quarterly. The Bonus component will be defined with specific
non-financial objectives within the next 30 days. Effective January 31,
2001 the Bonus will be redefined to include a Company profitability component.

Equity
– To be determined subject to Board Approval.

Benefits
- Employee will be eligible to participate in all Company benefit plans on the
same terms as any other employee. 

Note: All Compensation Plans require Board Approval

 

Duties
– Employee will devote his full business time and attention and best efforts to
the affairs of the Company and Employee shall not engage in any other business
duties or pursuits or render any services of a professional nature to any other
entity or person, without the prior written consent of the Company.

 

Section 3

Termination

 

Termination
for Cause – The Company shall have the right at any time, exercisable upon 10
days’ written notice, to terminate Employee’s employment for “Cause”. “Cause
shall mean (1) gross negligence or willful misconduct by Employee in the
performance of Employee’s obligations hereunder, (2) material breach of any
provision of this Agreement and, if such breach is susceptible to cure, such
breach is not cured within 10 days of written notice to Employee, (3) felony
conviction, (4) fraud, embezzlement or any other illegal or wrongful conduct
substantially detrimental to the Company, (5) intentionally imparting material
confidential information relating to the Company other than in the course of
Employee’s duties. (6) violation of the conditions detailed in the Authority
Matix. Upon termination for Cause, Employee shall be entitled to receive Base Salary,
unpaid accrued vacation and benefits through the effective date of the
termination. No other payments or compensation of any kind will be paid.

 

Resignation
– Employee may resign and terminate his employment at any time by giving 30
days’ written notice. Employee will receive the same payment as outlined in
Termination for Cause.

 

Termination
Due to Death or Disability – This agreement shall automatically terminate upon
Employee’s death. In addition, if Employee is unable to perform his duties by
reason of any mental or physical

 

 

disability
or incapacity for a period of 90 consecutive days, the Company may terminate
his employment upon 30 days’ written notice. Employee will receive the same
payment as outlined in Termination for Cause except as otherwise provided under
the Company’s Disability plan.

 

Termination
Without Cause; Resignation With Good Reason – The Company shall have the right,
exercisable upon 10 days’ prior written notice, to terminate Employee’s
employment under this Agreement for any reason or for no reason, at any time.
The Employee shall have the right, exercisable upon 10 days’ prior written
notice, to terminate his employment under this Agreement for “ Good Reason”.
“Good Reason” shall mean any of the following actions by the Company: (1)
material reduction in Employee’s title or responsibilities, (2) material breach
by the Company of any provision of this Agreement, and (3) requiring Employee
to be based outside of Illinois, if such breach is susceptible to cure, such
breach is not cured within 10 days of written notice to the Company. If
Employee is terminated without Cause or resigns with Good Reason prior to the
end of the Initial Term, Employee will be entitled to receive base salary,
unpaid accrued vacation and benefits for 12 months and no other payments of any
kind. If Employee is terminated without Cause or resigns with Good Reason
during any Renewal Term, Employee will be entitled to receive the same payment
as outlined.

 

Section 4

Certain Agreements

 

Confidentiality
– Employee acknowledges that the Company owns and will own and has developed
and will develop proprietary information concerning its business and its
customers and clients (“Proprietary Information”). Such Proprietary Information
includes, among other things, trade secrets, financial information, product
plans, customer lists, marketing plans, systems, manuals, training materials,
forecasts, inventions, improvements, ideas, know-how and other intellectual
property. Employee shall, at all times, both during employment by the Company
and thereafter, keep all Proprietary Information in confidence and trust and
will not use or disclose any Proprietary Information without the written
consent of the Company, except as necessary in the ordinary course of
Employee’s duties. Employee shall keep the terms of this Agreement in
confidence and trust and shall not disclose such terms.

 

Company
Property –Employee recognizes that all Proprietary Information, however stored
or memorialized, and all identification cards, keys, access codes, marketing
materials, documents, records and other equipment or property which the Company
provides are the sole property of the Company. Upon termination Employee shall
(1) refrain from taking any such property from the Company’s premises and (2) return
any property in Employee’s possession.

 

Assignment
of Inventions to the Company – Employee will promptly disclose to the Company
all improvements, inventions, formulas, ideas, works of authorship, processes,
computer programs, know-how and trade secrets developed, whether or not
patentable, made or conceived or reduced to practice or developed by Employee,
either alone or jointly with others, during his employment or using the
Company’s equipment, supplies, facilities or trade secret information (collectively,
“Inventions”). All Inventions, and other intellectual property rights shall be
the sole property of the Company and shall be “works made for hire.” Employee
hereby assigns to the Company any rights Employee may have or acquire in all
Inventions and agrees to perform, during and after employment with the Company,
at the Company’s expense, all acts reasonably necessary by the Company in
obtaining and enforcing intellectual property rights with respect to such
Inventions. Employee hereby irrevocably appoints the Company and its officers
and agents as Employee’s attorney-in-fact to act for and in Employee’s name and
stead with respect to such Inventions.

 

Non-Solicitation
of Other Employees and Agents – For a period of 18 months after termination
hereof, Employee will not encourage, solicit, induce, or attempt to encourage,
solicit or induce any other employee or any independent contractor, agent or
representative of the Company to leave his/her employment or terminate his/her
relationship with the Company. In addition for a period of 18 months after
termination hereof, Employee will not hire or attempt to hire any person who is
an employee, contractor, agent or representative of the Company at such time or
who has been an employee, contractor, agent or representative of the Company at
any time within six months preceding such time.

 

2

 

Non-Solicitation
of Customer, Clients, and Suppliers. For a period of 18 months after
termination hereof, Employee will not, directly or indirectly, (1) solicit,
divert or attempt to solicit or divert, on behalf of any other business
competitive with the Company, any customer or client of the Company, or any
prospective customer or client of the Company, at the time of, or within one
year prior to, termination hereof, or (2) interfere with any business
relationship between the Company and any business which supplies products or
services to the Company.

 

Covenant
Not to Compete – For a period of 18 months after termination hereof, Employee
will not own, manage, participate in, become employed by or be connected in any
manner with any business that competes with the Company in the development,
production, marketing or servicing of any service or product (1) with which
Employee was involved in the course of Employee’s employment or (2) of which
Employee has gained knowledge in the course of Employee’s employment. Employee
acknowledges that the Company conducts or will conduct its operations
throughout the United States and worldwide and that Employee therefore shall
not, during the period specified above, engage in such competitive conduct
anywhere in the world. Notwithstanding the foregoing, Employee may beneficially
own publicly traded securities representing not more than 2% of any business
that competes with the Company.

 

Remedies
– Employee recognizes that irreparable harm would result from any breach by
Employee of the covenants in this Section 4 and that monetary damages
alone would not provide adequate relief, and therefore, Employee acknowledges
that in such case injunctive relief is proper, in addition to any other relief
the Company may seek. In the event the Company brings an action to enforce any
provision of this Article 4, the non-prevailing party shall pay to the prevailing
party all costs and expenses, including attorneys’ fees, which the prevailing
party incurs in such action.

 

Section 5

Miscellaneous Provisions

 

Severability
– The parties agree that it is not their intention to violate any public policy
or statutory or common law. If any provision of this Agreement, or the
application of any such provision to any person or circumstance, shall be
judicially declared to be invalid, unenforceable, void or voidable, such
decision will not have the effect of invalidating, voiding or rendering
voidable the remainder of this Agreement.

 

Governing
Law – This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of California without regard to its
principles of conflicts of laws.

 

Employee
has read this Agreement carefully and understands and accepts the obligations
which it imposes upon Employee without reservation. No other promises or
representations have been made to Employee to induce Employee to sign this
Agreement. Employee is signing this Agreement voluntarily and freely.

 

	
  COMPANY:

  	
  EMPLOYEE:

  
	
   

  	
   

  
	
  SSA
  Acquisition Corporation

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  ILLEGIBLE

  	
   

  	
   /s/ KIRK ISAACSON

  	
   

  
	
   

  	
   

  
	
  Title:

  	
  VP HR

  	
   

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
  8/9/00

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