Document:

Exhibit
10.24

 

DATALINK CORPORATION

CHANGE
OF CONTROL SEVERANCE AGREEMENT

 

                THIS
CHANGE OF CONTROL SEVERANCE AGREEMENT (the “Agreement”)
is made as of the 12th day of November, 2004 (the “Effective
Date”), by and between Datalink Corporation, a Minnesota corporation
(the “Company”), and “Greg R. Meland”; “Charles
B. Westling”; “Daniel J. Kinsella”; and “Mary E. West” (the “Executive”).

 

WHEREAS, the Executive
is currently employed by the Company as “Chief Executive Officer”; “President
and Chief Operating Officer”; “Vice President Finance and Chief Financial
Officer” and “Vice President Human Resources”; and

 

                WHEREAS, the Board of Directors of the Company (the “Board”) has determined that it is in the best interests of
the Company to institute formalized severance arrangements for certain of the
executives of the Company, including the Executive.

 

NOW,
THEREFORE, in consideration of the premises and mutual
covenants herein contained, the Company and the Executive hereby agree as
follows:

 

1.             Definitions.  Unless otherwise defined herein, the
following capitalized terms have the meanings set forth below:

 

                (a)           “Beneficial Ownership”
is computed by reference to Rule 13d-3 under the Exchange Act.

 

                (b)           “Cause” means
(i) willful or grossly negligent failure by the Executive to perform his or her
duties (other than any such failure resulting from the Executive’s incapacity
due to physical or mental illness or disability), (ii) willful or grossly
negligent commission of an act of fraud or dishonesty resulting in economic,
financial or reputation injury to the Company, (iii) conviction of, or entry by
the Executive of a guilty or no contest plea to, the commission of a felony or
a crime involving or relating to the Company or its business, or involving or
relating to moral turpitude, (iv) a willful or grossly negligent breach by the
Executive of his or her fiduciary duty to the Company which results in
economic, financial or reputation injury to the Company, or (v) willful or
grossly negligent breach of the Executive’s confidentiality and
non-solicitation covenants contained herein. 
The Company shall provide written notice to the Executive of its
determination that Cause exists and give the Executive an opportunity (not
exceeding 30 days without the Board’s consent) to cure such Cause.

 

                (c)           “Change of Control”
means the happening of any of the following events:

 

                                (i)            An acquisition of outstanding or
newly issued Company securities that results in any Person having Beneficial
Ownership of more than 50% (other than any Person who, as of the Effective
Date, already has Beneficial Ownership of at least 25%) of either (x) the then Outstanding Company Common Stock or
(y) the combined voting power of the then Outstanding Company Voting Securities;  or

 

                                (ii)           A change in the composition of the
Board in connection with a tender or exchange offer, a Corporate Transaction or
a direct purchase of securities from the Company such that (i) the individuals
who, as of the Effective Date, constitute the Incumbent Board cease to constitute
at least a majority of the Board or (ii) a majority of the individuals who, as
of the Effective Date, constitute the Incumbent Board resign or are removed
from the Board; or

 

                                (iii)          The approval by the shareholders of
the Company of a Corporate Transaction or, if consummation of such Corporate
Transaction is subject, at the time of such approval by shareholders, to the
consent of any government or governmental agency, the obtaining of such consent
(either explicitly or implicitly by consummation);  excluding, however, such a Corporate
Transaction pursuant to which (1) all or substantially all of the Beneficial
Owners of the Outstanding Company Common Stock and Outstanding Company Voting
Securities immediately prior to such Corporate Transaction will Beneficially
Own, directly or indirectly, more than 50% of the outstanding shares of common
stock, or more than 50% of the combined voting power of the then outstanding
voting securities entitled to vote generally in the election of directors, of
the company resulting from such Corporate Transaction (including, without
limitation, a corporation which as a result of such transaction owns the
Company or all or substantially all of the Company’s assets either directly or
through one or more subsidiaries) in substantially the same proportions as
their ownership, immediately prior to such Corporate Transaction, of the
Outstanding Company Common Stock and Outstanding Company Voting Securities, as
the case may be, (2) no Person (other than the Company, any employee benefit
plan (or related trust) sponsored or maintained by the Company or any
corporation controlled by the Company or such corporation resulting from such
Corporate Transaction) will Beneficially Own, directly or indirectly, 20% or
more of, respectively, the outstanding shares of common stock of the
corporation resulting from such Corporate Transaction or the combined voting
power of the outstanding voting securities of such corporation entitled to vote
generally in the election of directors except to the extent that such ownership
existed with respect 

 

 

 

to the Company prior to the Corporate
Transaction and (3) individuals who were members of the Incumbent Board will
constitute at least a majority of the board of directors of the corporation
resulting from such Corporate Transaction; 
or

 

                                (iv)
The approval by the shareholders of the Company of a complete liquidation or
dissolution of the Company.

 

                (d)           “Code” means the
Internal Revenue Code of 1986, as amended.

 

                (e)           “Corporate Transaction”
means a reorganization, merger or consolidation or sale or other disposition of
all or substantially all of the assets of the Company or the acquisition of
assets of another corporation.

 

                (f)            “Covered
Termination” means (i) a termination without Cause of the Executive’s
employment by the Company in anticipation of, in connection with, at the time
of or within two years after a Change of Control or (ii) the Executive’s
resignation of employment with the Company for Good Reason arising in
anticipation of, in connection with, at the time of or within two years after a
Change of Control.

 

                (g)           “Exchange Act”
means the Securities Exchange Act of 1934, as amended.

 

                (h)           “Excise Tax”
shall mean the excise tax imposed by Section 4999 of the Code, together with
any interest or penalties imposed with respect to such excise tax.

 

                (i)            “Good Reason”
shall mean (i) the assignment to the Executive of substantial duties adversely
and materially inconsistent with the Executive’s position (including status,
offices, titles and reporting requirements), authority, duties or
responsibilities on the Effective Date, (ii) reduction in the Executive’s
annual base salary or annual targeted bonus opportunity, (iii) relocation of
the Company’s offices at which the Executive is principally employed to a
location more than 50 miles from the prior location, (iv) the Company’s failure
to obtain a satisfactory agreement from any successor to assume and agree to
perform this Agreement, or (v) the Company’s failure to cure a material breach
of its obligations under the Agreement. 
The Executive shall provide the Company written notice of his or her
determination that Good Reason exists and an opportunity (not to exceed 30 days
without the Executive’s consent) to cure any curable event.

 

                (j)            “Incumbent Board”
means the members of the Company’s Board of Directors on the Effective Date.

 

                (k)           “Outstanding Company Common Stock”
means, as of a particular date, the number of shares of the Company’s Common
Stock then outstanding.

 

                (l)            “Outstanding
Company Voting Securities” means, as of a particular date, those
voting securities of the Company entitled to vote generally in the election of
directors then outstanding.

 

                (m)          “Person” means
an individual, entity or group within the meaning of Section 13(d)(3) or 14(d)(2)
of the Exchange Act.

 

2.             Notice and Date of Termination.  Any termination of the Executive’s employment
by the Company or by the Executive shall be communicated by a written notice of
termination to the other party (the “Notice of Termination”).  Where applicable, the Notice of Termination
shall indicate the specific provision in this Agreement relied upon and shall
set forth in reasonable detail the facts and circumstances claimed to provide a
basis for termination of the Executive’s employment under the provision so
indicated.  The date of the Executive’s
termination of employment with the Company (the “Date of
Termination”) shall be the date specified in the Notice of
Termination (which, unless the Company is terminating the Executive for Cause,
shall not be less than thirty (30) days from the date such Notice of
Termination is given).

 

3.             Severance Benefits in Connection with a Covered
Termination.  If during
the term of the Executive’s employment with the Company, there is a Covered
Termination of the Executive’s employment, and if Executive executes and
delivers to the Company the release in the form attached as Exhibit A (the “Release”) and does not revoke it, and conditioned upon the
Executive’s continued compliance with the confidentiality, non-competition and
non-solicitation provisions in Section 5 below, the Company shall provide the
Executive with the following payments and benefits:

 

                (a)           Cash Payments.  Within 48 hours after the Date of
Termination, the Company shall pay the Executive his or her final wages as
computed through the Date of Termination. 
In addition, on the first day of the month following the Executive’s
Date of Termination (or, if later, five business days after expiration of any
period for revocation under the Release), the Company shall pay the Executive a
single, lump sum payment equal to two times the Executive’s annual base salary
for “Meland, Westling and Kinsella” and 

 

 

 

one time annual base salary for “West” as in
effect immediately prior to the Date of Termination (or, if earlier, prior to
any reduction of such base salary in anticipation of, at the time of or in
connection with the Change of Control).

 

                (b)           Health Benefits.  For a period of 18 months following the Date
of Termination, the Executive and his or her eligible family members shall, at
the Company’s expense (which may be by direct payment or reimbursement of
premium payments made by the Executive), be entitled to health insurance
continuation coverage (“COBRA Coverage”)
pursuant to Section 4980B of the Code, Sections 601-608 of the Employee
Retirement Income Security Act of 1974, as amended and under any other
applicable law, to the extent required by such laws.  Thereafter, but not longer than two (2) years
following the Date of Termination, the Company shall continue to provide to the
Executive and his or her eligible family members direct payment of, or
reimbursement for, insurance premiums for medical and dental insurance benefits
substantially similar to the COBRA Coverage. 
However, if the Executive becomes re-employed with another employer and
is eligible to receive any health insurance benefits under another employer’s
plans, the Company’s obligations under this Section 3(b) shall terminate.

 

4.             Section 280G Parachute Payment Taxes.

 

                (a)           Reduction to Avoid Excise
Tax.  If any payment or
distribution to or for the benefit of the Executive (whether paid or payable or
distributed or distributable) pursuant to the terms of this Agreement or
otherwise (a “Payment”) would constitute a “parachute
payment” within the meaning of Section 280G of the Code, the Payment shall be
reduced to the extent necessary so that no portion of the Payment is subject to
the Excise Tax, but only if, by reason of such reduction, the net after-tax
benefit to the Executive shall equal or exceed the net after-tax benefit to the
Executive if no reduction was made. 
Subject to subsection (b) below, the Company shall afford the Executive
an opportunity to select a reduction of cash or non-cash items, or a
combination of both, to reduce the excess Payment.

 

                (b)           Determinations.  All determinations required to be made under
Section 4(a), including whether a reduction of any Payment is required and the
assumptions to be utilized in arriving at such determination, shall be made by
the Company’s independent certified public accountants serving immediately
prior to the Change in Control, or such other nationally recognized accounting
firm as may be agreed by the Company and the Executive (the “Accounting Firm”); 
provided, that the Accounting Firm’s determination shall be made based
upon “substantial authority” within the meaning of Section 6662 of the
Code.  Any determination by the
Accounting Firm hereunder shall be binding upon the Company and the Executive.

 

5.             Confidential Information, Non-Competition and
Non-Solicitation.

 

                (a)           Confidentiality.  In consideration of this Agreement, the
Executive agrees that he or she will not at any time use or, other than as
required by court order, disclose, or permit use or disclosure of, any of the
Company’s confidential information or trade secrets.  This includes all knowledge and information
that Executive acquires during his or her employment with the Company which
relates to the business, developments, activities, products and services or
financial affairs of the Company or any individual or firm that is engaged in
or has done business with the Company. 
This also includes any information or compilation of information that
derives independent economic value from not being generally known or readily
ascertainable by proper means by other persons and which relates to any aspect
of our business, including, but not limited to: 
trade secrets within the meaning of the Minnesota Trade Secrets Act,
customer lists, customer information, costs and selling prices, payment and
credit information, customer profiles and analysis, prospect tracking
recording, financial information, budget and financial plans, costing, pricing,
billing information, tax data, sales and marketing information, business
strategies and plans, technical information including software, research,
product/product development information, personnel information such as
salaries, phone numbers, titles, benefits, bonuses, employment histories,
shareholder information and stock data and any discoveries, inventions, ideas,
methods, products, equipment, developments, improvements or programs which the
Company holds confidential and has not publicly disclosed.  Despite the above, the Executive is not
obliged to maintain the confidentiality of information that is or becomes
public other than as a result of acts by or through the Executive or that the
Executive independently obtains from a third party having no duty of
confidentiality to the Company.

 

                (b)           Non-Competition and Non-Solicitation.  In consideration of this Agreement, and if
there is a Covered Termination, the Executive agrees that “for two years for
Meland, Westling and Kinsella and one year for West” after the Date of
Termination, the Executive will not for any reason whatsoever, directly or
indirectly, for the Executive or on behalf of or in conjunction with any other
person, firm or entity:

                                (i)            engage,
as an officer, director, shareholder, owner, partner, member, joint venturer or
in a managerial capacity, whether as an employee, independent contractor,
consultant or advisor or as a sales representative or executive, in any
business that, at the Date of Termination, manufactures, markets and/or sells
data storage hardware and/or data storage software products and/or services in
competition with the Company in the United States;

                                (ii)           recruit,
solicit, hire or induce, or attempt to recruit, solicit, hire or induce, any
employee or employees to terminate employment or otherwise cease his, her or
their relationship with the Company;

 

 

 

                                (iii)          solicit,
divert or take away, or attempt to solicit, divert or to take away, the data
storage hardware and/or software products and/or services business or patronage
of any of the Company’s actual or prospective clients, customers or accounts
contracted, solicited or served by the Company during Executive’s
employment;  or

                                (iv)          call
upon or solicit any prospective acquisition candidate or individual or groups
of employees of other organizations, which, to the Executive’s actual knowledge
after due inquiry, the Company has called upon or for which the Company has
made an acquisition or hiring analysis, for the purpose of acquiring such
entity or its assets or hiring such individuals.

                Notwithstanding
the above, the Executive may acquire as a passive investment not more than five
percent (5%) of the capital stock of a competing business, whose stock is
traded on a national securities exchange or over-the-counter.

 

                (c)           Enforcement.  The covenants in this Section 5 are severable
and separate.  Therefore, the
unenforceability of any specific covenant will not affect the provisions of any
other covenant.  Moreover, if any court
of competent jurisdiction determines that the scope, time or territorial
restrictions set forth are unreasonable, the parties mutually intend that the
court enforce these restrictions to the fullest extent it deems reasonable, and
the court shall accordingly reform this Agreement.  In addition to any other legal remedies and
damages available, the Company shall be entitled to specific performance of the
provisions of this Section 5 and to temporary and permanent injunctive relief
(without the necessity of posting a bond) to restrain the violation or
threatened violation of such obligations by the Executive.  The Company may bring any action for such
injunctive relief in either the state or federal courts located in Hennepin
County, Minnesota, as to which courts the parties agree to the personal
jurisdiction and convenience thereof.

 

6.             Miscellaneous.

 

                (a)           At-Will Employment.  Nothing contained in this Agreement (i)
confers upon the Executive any right to continue in the employ of the Company,
(ii) constitutes any contract or agreement of employment or (iii) interferes in
any way with the at-will nature of the Executive’s employment with the Company.

 

                (b)           Indemnification;  Directors’ and Officers’ Insurance.

 

                                (i)            The Executive shall have the benefit
of indemnification to the fullest extent permitted by applicable law, which
indemnification shall continue after the termination of this Agreement for such
period as may be necessary to continue to indemnify Executive for his or her
acts or omissions during the term hereof to the fullest extent permitted by
applicable law.

 

                                (ii)           The Company shall provide, or cause
any person or entity that may acquire the Company or substantially all of its
assets (the “Surviving Company”) to provide the
Executive, for a period of not less than six (6) years after the date of the
Executive’s termination of employment with the Company or the Surviving Company,
as the case may be, with directors’ and officers’ insurance coverage
(including, without limitation, by arranging for run-off coverage, if
necessary) that provides coverage for events that occurred during any time that
the Executive was or is an officer or director of the Company or the Surviving
Company (the “D&O Insurance”).  The D&O Insurance shall not be materially
less favorable than the Company’s D&O Insurance as in effect on the
Effective Date or, if such insurance coverage is not available, the most
advantageous D&O Insurance obtainable.

 

                (c)           No Mitigation or Offset.

 

                                (i)            Except as otherwise provided in this
Agreement, the Executive shall not be required to mitigate the amount of any
payment provided for in this Agreement by seeking other employment or
otherwise, nor shall the amount of any payment provided for herein be reduced
by any compensation earned by the Executive as the result of employment by
another employer.

 

                                (ii)           The Company’s obligation to make the
payments provided for in this Agreement and otherwise to perform its
obligations hereunder shall not be affected by any set-off, counterclaim,
recoupment, defense or other claim, right or action which the Company may have
against the Executive or others, provided that nothing herein shall preclude
the Company from separately pursuing recovery from the Executive based on any
such claim.

 

                (d)           Assumption by Successor.  The Company shall require any successor
(whether direct or indirect, by purchase, merger, consolidation or otherwise)
to all or substantially all of the business and/or assets of the Company,
whether pursuant to a Change in Control or Corporate Transaction, to expressly
assume and agree to perform the obligations under this Agreement.

 

                (e)           Withholding.
The Company may withhold from any amounts payable under this Agreement such
federal, state, local or foreign taxes as shall be required to be withheld
pursuant to any applicable law or regulation.

 

                (f)            Severability.  The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement, which shall remain in full force and
effect.

 

 

 

                (g)           No Waiver.  No provision of this Agreement may be
modified, waived or discharged unless such waiver, modification or discharge is
agreed to in writing and signed by the Executive and such officer as is
specifically designated by the Board.  No
waiver by either party hereto at any time of any breach by the other party
hereto of or compliance with, any condition or provision of this Agreement to
be performed by such other party shall be deemed a waiver of similar or
dissimilar provisions or conditions at the same or at any prior or subsequent
time.

 

                (h)           Binding Effect.  This Agreement shall bind and inure to the
benefit of and be enforceable by the Executive, the Company and their
respective permitted successors and assigns (including personal
representatives, heirs and legatees in the event of death of Executive).  However, the Executive may not assign any
rights or obligations under this Agreement.

 

                (i)            Governing Law.  This Agreement shall be governed by, and
construed and enforced in accordance with, the laws of the State of Minnesota,
exclusive of its conflict of laws rules.

 

                (j)            Entire Agreement.  This Agreement contains the entire agreement
between the parties hereto with respect to the subject matter contained herein
and replaces and makes null and void any prior agreements, oral or written,
between the Executive and the Company regarding the same.  However, this Agreement does not affect the
terms of any separate restricted stock award or stock option agreements that
may be in effect between the Executive and the Company from time to time.

 

                IN WITNESS WHEREOF, the undersigned have hereunto affixed their
signatures.

 

	
  Datalink Corporation

  	
  Executive:

  
	
   

  	
   

  	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Its

  	
   

  	
   

  	
   

  

 

 

 

Exhibit
A

Release
of Claims

 

                I
release Datalink Corporation and its officers, directors, employees and agents
from any claim, cause of action, damages or expenses, including attorneys’
fees, arising out of the relationship between the parties through the signing
of this Release.  This is intended to be
a complete release of claims by me, whether the claims are known or unknown,
matured or unmatured or fixed or contingent. 
Therefore, by this release I GIVE UP
ANY RIGHT TO MAKE A CLAIM, BRING A LAWSUIT, FILE AN ADMINISTRATIVE CHARGE OF
DISCRIMINATION OR OTHERWISE SEEK MONEY DAMAGES OR COURT ORDERS AS A RESULT OF
MY EMPLOYMENT BY DATALINK, OR OF MY SEPARATION FROM EMPLOYMENT WITH
DATALINK.  I acknowledge and intend that
this Release cover claims of wrongful termination, defamation, intentional
infliction of emotional distress, any claims under the Federal Age
Discrimination in Employment Act, Title VII of the Civil Rights Act of 1964,
the Americans With Disabilities Act, the Minnesota Human Rights Act and
Minnesota Statute Section 181.81 (which prohibits age discrimination) and any
other state or federal statutes prohibiting discrimination in employment.  This Release also binds my heirs,
administrators, representatives, executors, successors and assigns.  I have been advised by my legal
counsel of the effect of this Release. 
Despite the above, this Release does not apply to claims against
Datalink for breaching its obligations in a Change of Control Severance
Agreement dated November 12, 2004, in any restricted stock award agreement or
in any stock option grant agreement with me.

 

                NOTICE TO THE UNDERSIGNED:

 

                THIS
IS A RELEASE OF LEGAL RIGHTS YOU MAY HAVE. 
YOU SHOULD CONSULT WITH AN ATTORNEY REGARDING THIS RELEASE AND OTHER
ASPECTS OF THIS LETTER BEFORE YOU SIGN IT.

 

                YOU
HAVE 21 DAYS TO CONSIDER WHETHER OR NOT TO SIGN THIS RELEASE, STARTING FROM THE
DATE YOU FIRST RECEIVE A COPY OF IT.  YOU
MAY SIGN THIS RELEASE AT ANY TIME DURING THE 21-DAY PERIOD.

 

                YOUR
EMPLOYMENT BY DATALINK HAS TERMINATED. 
YOUR ACCEPTANCE OR FAILURE TO ACCEPT THIS RELEASE DOES NOT AFFECT YOUR
TERMINATION.  IF YOU DO NOT ACCEPT THIS
RELEASE, OR IF YOU REVOKE YOUR ACCEPTANCE OF IT, DATALINK WILL NOT PROVIDE YOU
THE SEVERANCE PAY AND OTHER BENEFITS DESCRIBED IN THE CHANGE OF CONTROL
SEVERANCE AGREEMENT.

 

                AFTER
YOU ACCEPT THIS RELEASE BY SIGNING IT, YOU MAY REVOKE YOUR ACCEPTANCE FOR A
PERIOD OF 15 DAYS AFTER THE DATE YOU SIGN. 
THIS RELEASE IS NOT EFFECTIVE UNTIL THIS 15-DAY REVOCATION PERIOD
EXPIRES.

 

                IF YOU WISH TO REVOKE YOUR ACCEPTANCE OF THIS
RELEASE, YOU MUST NOTIFY DATALINK IN WRITING WITHIN THE 15-DAY REVOCATION
PERIOD.  YOU MUST DELIVER YOUR NOTICE TO
DATALINK IN PERSON OR BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, ADDRESSED
TO:  Greg R. Meland, Chief Executive
Officer, Datalink Corporation, 8170 Upland Circle, Chanhassen, Minnesota  55317. 
IF YOU FAIL TO PROPERLY DELIVER OR MAIL YOUR WRITTEN REVOCATION AS
INSTRUCTED, YOUR REVOCATION WILL NOT BE EFFECTIVE.

 

	
  Date
  this Release is first given by Datalink to the undersigned:

  	
   

  
	
   

  	
   

  
	
  Agreed to
  and accepted by the undersigned:

  	
   

  
	
   

  	
   

  
	
  Date
  this Release is signed by the undersigned:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EmployeeExhibit
10.01

PROMISSORY NOTE

	
  US$165,000.00

  	
   

  	
  October 20, 2004

  

 

FOR VALUE RECEIVED, the undersigned, Zamba Corporation, a Delaware
corporation, and each of its affiliates and principals (collectively “Borrower”),
hereby unconditionally promises to pay to the order of TECHNOLOGY SOLUTIONS
COMPANY, a Delaware corporation (“Lender”), having its principal office at 205
North Michigan Avenue, Suite 1500, Chicago, Illinois 60601, in lawful money of
the United States of America and in immediately available funds, the sum of ONE
HUNDRED SIXTY FIVE THOUSAND DOLLARS AND NO CENTS ($165,000.00).  Interest shall accrue on these amounts during
the term of this Note at a rate of 8% per annum, compounded daily. The
indebtedness evidenced hereby with all accrued interest shall be due and
payable in full one hundred eighty days from the date of this Note (the “Payment
Date”).

Borrower reserves the right to prepay this Note, in whole or in part,
at any time without penalty.

All payments under this Note shall be made by Borrower to Lender, at
Lender’s principal place of business as set forth above, or at such other place
as Lender may from time to time designate in writing.

The occurrence or
existence of one or more of the following events shall constitute an event of
default (“Default”) under this Note: (i) the failure of Borrower to pay when
due any principal or interest due hereunder; or (ii) (a) Borrower shall become
generally unable to pay his debts as they become due, or (b) Borrower shall
make an assignment for the benefit of creditors, or (c) Borrower shall call a
meeting of creditors for the composition of debts, or (d) a proceeding under
any bankruptcy, reorganization, arrangement of debt, insolvency, readjustment
of debt or receivership law or statute is filed by or against Borrower, or a
custodian, receiver or agent is appointed or authorized to take charge of any
of Borrower’s properties, or Borrower takes any action to authorize any of the
foregoing.

In an event of Default, Lender may, by notice to Borrower, declare all
the indebtedness evidenced by this Note to be, and thereupon such indebtedness
shall become, immediately due and payable, without presentment, demand, protest
or further notice of any kind, all of which are hereby expressly waived by
Borrower. In the event of Default, the unpaid principal amount of this Note
shall thereafter accrue interest at an annual rate of fifteen per cent (15%)
which interest shall be due and payable when and as accrued and shall be added
to the principal balance of this Note if unpaid.

If payment hereunder becomes due and payable on a day which is not a “Business
Day” (as defined below), the due date thereof shall be extended to the next
succeeding Business Day, and interest shall be payable thereon during such
extension at the rate specified above. “Business Day” shall mean a day on which
banks in Chicago, Illinois are open for the transaction of banking business. In
no case or event whatsoever shall interest charged hereunder, however such
interest may be characterized or computed, exceed the highest rate permissible
under any law which a court of competent jurisdiction shall, in a final
determination, deem applicable hereto.

Any notice hereunder shall be sufficiently given if in writing and
delivered in person or mailed by first class mail addressed as follows:

If to Borrower:

Zamba Corporation

3033 Excelsior Blvd., Suite 200

Minneapolis, MN  55416

 

If to
Lender:

Technology Solutions
Company

205 North Michigan Avenue, Suite 1500

Chicago, Illinois  60601

Attention:  Chief Financial Officer

Borrower and Lender may each designate additional or different address
by notice to the other party as provided herein.

Lender shall be under no obligation to marshal any assets in favor of
Borrower in payment of any or all of Borrower’s liabilities hereunder.  To the extent that Borrower makes a payment
or payments to Lender, and such payment or payments or any part thereof are
subsequently invalidated, declared to be fraudulent or preferential, set aside
or required to be repaid to a trustee, receiver or any other party under any
bankruptcy law, provincial, state or federal law, common law or equitable
cause, then to the extent of such recovery, the obligation or part hereof
originally intended to be satisfied shall be revived and continued in full
force and effect as if such payment had not been made or such enforcement or
setoff had not occurred.

Any dispute between Lender and Borrower arising out of, connected with,
related to, or incidental to the relationship established between them in
connection with this Note, and whether arising in contract, tort, equity, or
otherwise, shall be resolved in accordance with the internal laws and not the
conflicts of law provisions of the State of Illinois.

2

Except as provided in the immediately succeeding paragraph, Lender and
Borrower each agree that all disputes between them arising out of, connected
with, related to, or incidental to the relationship established between them in
connection with this Note and whether arising in contract, tort, equity, or otherwise,
shall be resolved only by state or federal courts located in Cook County,
Illinois, but Lender and Borrower acknowledge that any appeals from those
courts may have to be heard by a court located outside of Cook County,
Illinois. Borrower waives any and all objections that he may have to the
location of the court considering the dispute.

Borrower agrees that Lender shall have the right to proceed against
Borrower or his property in a court in any location to enable Lender to enforce
a judgment or other court order entered in favor of Lender. Borrower agrees
that he will not assert any permissive counterclaims in any proceeding brought
by Lender to enforce a judgment or other court order in favor of Lender.
Borrower waives any objection that he may have to the location of the court in
which Lender has commenced a proceeding described in 

this paragraph.

Borrower waives personal service of any process upon him and consents
that all such service of process be made by registered mail directed to
Borrower at the address stated herein.

Borrower waives the posting of any bond otherwise required of Lender to
enforce any judgment or other court order entered in favor of Lender, or to
enforce this note by specific performance, temporary restraining order, preliminary
or permanent injunction.

Whenever possible, each provision of this Note shall be interpreted in
such manner as to be effective and valid under applicable law, but if any
provision of this Note shall be prohibited by or invalid under applicable law, such
provision shall be ineffective to the extent of such prohibition or invalidity,
without invalidating the remainder of such provision or the remaining
provisions of this Note. Whenever in this Note reference is made to Lender or
Borrower, such reference shall be deemed to include, as applicable, a reference
to their respective successors and assigns, and the provisions of this Note
shall be binding upon and shall inure to the benefit of said successors and
assigns. Borrower’s successors and assigns shall include, without limitation, a
receiver, receiver and manager, trustee or debtor-in-possession of or for
Borrower.

	
  Zamba Corporation and affiliates

  
	
  Borrower

  
	
  By:

  	
  /s/
  Michael H. Carrel

  

 

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}]]