Document:

Exhibit 10.9

SSA GLOBAL TECHNOLOGIES, INC.

FORM OF DIRECTOR AND OFFICER INDEMNIFICATION AGREEMENT

This Indemnification
Agreement (“Agreement”) is made as of this  _____ day of ___________ 2004,
by and between SSA Global Technologies, Inc, a Delaware corporation (the “Company”),
and
[                        ]
(“Indemnitee”).

WHEREAS, the Company desires
to attract and retain the services of highly qualified individuals, such as
Indemnitee, to serve as officers and directors of the Company and to indemnify
its officers and directors so as to provide them with the maximum protection
permitted by law;

WHEREAS, the Company and
Indemnitee recognize the increasing difficulty in obtaining directors’ and
officers’ liability insurance, the significant increases in the cost of such
insurance and the general reductions in the coverage of such insurance;

WHEREAS, the Company and
Indemnitee further recognize the substantial increase in corporate litigation
in general, subjecting officers and directors to expensive litigation risks at
the same time as the availability and coverage of liability insurance has been
severely limited;

WHEREAS, it is reasonable,
prudent and necessary for the Company contractually to obligate itself to
indemnify its directors and certain of its officers to the fullest extent
permitted by applicable law so that they will serve or continue to serve the
Company free from undue concern that they will not be so indemnified; and

WHEREAS, the Indemnitee is
willing to serve, continue to serve and to take on additional service for or on
behalf of the Company on the condition that he or she be so indemnified.

NOW,
THEREFORE, in consideration of the premises and the covenants contained herein,
the Company and the Indemnitee do hereby covenant and agree as follows:

1.             Indemnification.

(a)           Third
Party Proceedings.  Subject to
Section 1(c), the Company shall indemnify Indemnitee if Indemnitee is or was a
party to any threatened, pending or completed action, suit, arbitration or
proceeding, whether civil, criminal, administrative or investigative (other
than an action by or in the right of the Company) by reason of the fact that he
or she is or was, (1) a director, officer, employee or agent of the Company,
(2) named in a registration statement filed by the Company under the Securities
Act of 1933, as amended (the “Securities Act”), as a person who is about to
become a director of the Company, or (3) serving at the request of the Company
as a director, officer, employee or agent of another corporation, partnership,
joint venture, trust or other enterprise, against expenses (including attorneys’
fees), judgments, fines and amounts paid in settlement actually and reasonably
incurred by him or her in connection with such action, suit or proceeding if he
or she acted in good faith and in a manner he or she reasonably believed to be
in or not opposed to the best interests of the Company, and, with respect to
any criminal action or proceeding, had no reasonable cause to believe his or
her conduct was unlawful.  The termination
of any action, suit or proceeding by judgment, order, settlement, conviction,
or upon a plea of nolo contendere or its equivalent, shall not, of itself,
create a presumption that Indemnitee did not act in good faith and in a manner
which he or she reasonably believed to be in or not opposed to the best
interests of the Company, and, with respect to any criminal action or
proceeding, had reasonable cause to believe that his or her conduct was
unlawful.

 

 

(b)           Proceedings
by or in the Right of the Company. 
Subject to Section 1(c), the Company shall indemnify Indemnitee if
Indemnitee is or was a party or is threatened to be made a party to any
threatened, pending or completed action or suit by or in the right of the Company
to procure a judgment in its favor by reason of the fact that he or she is or
was, (1) a director, officer, employee or agent of the Company, (2) named in a
registration statement filed by the Company under the Securities Act as a
person who is about to become a director of the Company, or (3) serving at the
request of the Company as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise, against
expenses (including attorneys’ fees) actually and reasonably incurred by him or
her in connection with the defense or settlement of such action or suit if he
or she acted in good faith and in a manner he or she reasonably believed to be
in or not opposed to the best interests of the Company; except that no
indemnification shall be made in respect of any claim, issue or matter as to
which Indemnitee shall have been adjudged to be liable to the Company unless
and only to the extent that the Delaware Court of Chancery or the court in
which such action or suit was brought shall determine upon application that,
despite the adjudication of liability but in view of all the circumstances of
the case, Indemnitee is fairly and reasonably entitled to indemnity for such
expenses which the Delaware Court of Chancery or such other court shall deem
proper.

(c)           Authorization.  Any indemnification under this Agreement
(unless ordered by a court) shall be made by the Company only as authorized in
the specific case upon a determination that indemnification of the Indemnitee
is proper in the circumstances because he or she has met the applicable
standard of conduct set forth in Section 1 (a) or (b).  Such determination shall be made (a) by a
majority vote of the directors who were not parties to such action, suit or
proceeding, even though less than a quorum, (b) by a committee of such
directors designated by majority vote of such directors, even though less than
a quorum, (c) if there are no such directors, or, if such directors so direct,
by independent legal counsel in a written opinion or (d) by the
stockholders.  To the extent, however,
that Indemnitee has been successful on the merits or otherwise in defense of
any action, suit or proceeding described above, or in defense of any claim,
issue or matter therein, he or she shall be indemnified against expenses
(including attorneys’ fees) actually and reasonably incurred by him or her in
connection therewith, without the necessity of authorization in the specific
case.

2.             Expenses; Indemnification Procedure.

(a)           Advance
of Expenses.  Expenses (including
reasonable attorneys’ fees) incurred by Indemnitee in defending any civil,
criminal, administrative or investigative action, suit or proceeding described
in Section 1(a) or (b) hereof shall be paid by the Company in advance of the
final disposition of such action, suit or proceeding upon receipt of an
undertaking by or on behalf of Indemnitee to repay such amount if it shall
ultimately be determined that he or she is not entitled to be indemnified by
the Company as authorized under this Agreement.

(b)           Notice/Cooperation
By Indemnitee.  Indemnitee shall, as
a condition precedent to his or her right to be indemnified under this
Agreement, give the Company notice in writing as soon as reasonably practicable
of any claim made or threatened to be made against Indemnitee for which
indemnification is or will be sought under this Agreement.  Notice to the Company shall be directed to
the Company at the address shown in Section 11 of this Agreement (or such address
as the Company shall designate in writing to Indemnitee).  In addition, Indemnitee shall give the
Company such information and cooperation as it may reasonably require and as
shall be within Indemnitee’s power.

(c)           Procedure.  If a claim under Section 1 hereof is not paid
in full by the Company within ninety (90) days after a written claim has been
received by the Company, or a claim under Section 2(a) hereof for an
advancement of expenses is not paid in full by the Company within thirty (30)
days after a written claim has been received by the Company, Indemnitee may at
any time thereafter

 

2

 

bring suit against the
Company to recover the unpaid amount of the claim.  If successful in whole or in part in any such
suit, or in a suit brought by the Company to recover an advancement of expenses
pursuant to Section 2(a), Indemnitee shall also be entitled to be paid the
expense of prosecuting or defending such suit, including any reasonable
attorneys’ fees.  In any suit by the
Company to recover an advancement of expenses pursuant to Section 2(a), the
Company shall be entitled to recover such expenses, upon a final judicial
decision from which there is no further right to appeal that Indemnitee has not
met the standards of conduct which makes it permissible under applicable law
for the Company to indemnify Indemnitee for the amounts claimed.  Neither the failure of the Company (including
its board of directors, independent legal counsel or stockholders) to have made
a determination prior to the commencement of such suit that indemnification of
Indemnitee is proper in the circumstances because Indemnitee has met the
standards of conduct which makes it permissible under applicable law for the
Company to indemnify Indemnitee for the amounts claimed, nor an actual
determination by the Company (including its board of directors, independent
legal counsel, or stockholders) that Indemnitee has not met such applicable
standard of conduct, shall create a presumption that Indemnitee has not met the
applicable standard of conduct or, in the case of such a suit brought by
Indemnitee, be a defense to such suit. 
In any suit brought by Indemnitee to enforce a right to indemnification
or to an advancement of expenses pursuant to Section 2(a) hereunder, or by the
Company to recover an advancement of expenses pursuant to Section 2(a), the
burden of proving that Indemnitee is not entitled to be indemnified, or to such
advancement of expenses, under this Agreement or otherwise shall be on the
Company.

(d)           Notice
to Insurers.  If, at the time of the
receipt of a notice of an actual or threatened claim pursuant to Section 2(b)
hereof, the Company has director and officer liability insurance in effect, the
Company shall give prompt notice of the commencement of such proceeding to the
insurers in accordance with the procedures set forth in its policies.  The Company shall thereafter take all
necessary or desirable action to cause such insurers to pay, on behalf of the
Indemnitee, all amounts payable as a result of such proceeding in accordance
with and to the extent of the terms of such policies.

(e)           Selection
of Counsel.  In the event the Company
shall be obligated under Section 1 hereof to pay the expenses of any proceeding
against Indemnitee, the Company, if appropriate, shall be entitled to assume
the defense of such proceeding, with counsel approved by Indemnitee, which
approval shall not be unreasonably withheld or delayed, upon the delivery to
Indemnitee of written notice of its election so to do.  After delivery of such notice, approval of
such counsel by Indemnitee and the retention of such counsel by the Company,
the Company will not be liable to Indemnitee under this Agreement for any fees
of counsel subsequently incurred by Indemnitee with respect to the same proceeding,
provided that: (i) Indemnitee shall have the right to employ his or her counsel
in any such proceeding at Indemnitee’s expense; and (ii) if (A) the employment
of counsel by Indemnitee at the Company’s expense has been previously
authorized by the Company, or (B) the Company shall not, in fact, have employed
counsel to assume the defense of such proceeding, then the reasonable fees and
expenses of Indemnitee’s counsel shall be at the expense of the Company.

3.             Additional Indemnification Rights: Nonexclusivity.

(a)           Scope.  Notwithstanding any other provision of this
Agreement, the Company hereby agrees to indemnify the Indemnitee to the fullest
extent permitted from time to time by the Delaware General Corporation Law as
the same presently exists or may hereafter be amended (but, if permitted by
applicable law, in the case of any amendment, only to the extent that such
amendment permits the Company to provide broader indemnification rights than
permitted prior to such amendment) or any other applicable law as presently or
hereafter in effect.  In the event of any
change in any applicable law, statute or rule which narrows the right of a
Delaware corporation to indemnify a member of its board of directors, an
officer or other corporate agent, such changes, to the extent not otherwise 

3

 

required by such law,
statute or rule to be applied to this Agreement, shall have no effect on this
Agreement or the parties’ rights and obligations hereunder.

(b)           Nonexclusivity.  The indemnification and advancement of
expenses provided by or granted pursuant to this Agreement shall not be deemed
exclusive of any other rights to which Indemnitee may be entitled under the
Company’s Fourth Amended and Restated Certificate of Incorporation (as the same
may be further amended from time to time), the Company’s Amended and Restated
By-Laws (as the same may be amended from time to time), any other agreement or
contract, any vote of stockholders or disinterested directors or otherwise,
both as to action in his or her official capacity and as to action in another
capacity while holding such office.

4.             Partial
Indemnification.  If Indemnitee is
entitled under any provision of this Agreement to indemnification by the Company
for some or a portion of the expenses, judgments, fines or penalties actually
or reasonably incurred by him or her in the investigation, defense, appeal or
settlement of any civil or criminal action or proceeding, but not, however, for
the total amount thereof, the Company shall nevertheless indemnify Indemnitee
for the portion of such expenses, judgments, fines or penalties to which
Indemnitee is entitled.

5.             Mutual
Acknowledgment.  Both the Company and
Indemnitee acknowledge that, in certain instances, Federal law or applicable
public policy may prohibit the Company from indemnifying its directors and
officers under this Agreement or otherwise. 
Indemnitee understands and acknowledges that the Company may be required
in the future to submit for determination by the appropriate regulatory agency
the question of whether the Company’s obligation to indemnify Indemnitee is
barred as a matter of public policy. 
Nothing in this Agreement is intended to require or shall be construed
as requiring the Company to do or fail to do any act in violation of applicable
law.  The Company’s inability, pursuant
to court order, to perform its obligations under this Agreement shall not
constitute a breach of this Agreement.

6.             Exceptions.  Any other provision herein to the contrary
notwithstanding, the Company shall not be obligated pursuant to the terms of
this Agreement:

(a)           Excluded
Acts.  To indemnify Indemnitee for
any acts or omissions or transactions from which an officer or a director may
not be relieved of liability under the Delaware General Corporation Law; or

(b)           Claims
Initiated by Indemnitee.  To
indemnify or advance expenses to Indemnitee with respect to a proceeding (or
part thereof) initiated or brought voluntarily by Indemnitee and not by way of
defense, except with respect to a proceeding (or part thereof) brought to
enforce a right to indemnification under this Agreement and except with respect
to a proceeding (or part thereof) authorized or consented to by the board of
directors of the Company; or

(c)           Lack
of Good Faith.  To indemnify
Indemnitee for any expenses incurred by the Indemnitee with respect to any
proceeding instituted by Indemnitee to enforce or interpret this Agreement, if
a court of competent jurisdiction determines that each of the material
assertions made by the Indemnitee in such proceeding was not made in good faith
or was frivolous; or

(d)           Insured
Claims.  To indemnify Indemnitee for
expenses or liabilities of any type whatsoever (including, but not limited to,
judgments, fines, ERISA excise taxes or penalties, and amounts paid in
settlement) to the extent paid, or acknowledged to be payable, directly to or
on behalf of Indemnitee by an insurance carrier under a policy of officers’ and
directors’ liability insurance; or

4

 

(e)           Claims
Under Section 16(B).  To indemnify
Indemnitee for expenses and the payment of profits arising from the purchase
and sale by Indemnitee of securities that is deemed, pursuant to a final
judicial decision from which there is no further right to appeal, in violation
of Section 16(b) of the Securities Exchange Act of 1934, as amended, or any
similar successor statute.

7.             Certain
Definitions.  For purposes of this
Agreement, references to “the Company” shall include, in addition to the
resulting corporation, any constituent corporation (including any constituent
of a constituent) absorbed in a consolidation or merger which, if its separate
existence had continued, would have had power and authority to indemnify its
directors, officers, employees or agents, so that any person who is or was a
director, officer, employee or agent of such constituent corporation, or is or
was serving at the request of such constituent corporation as a director,
officer, employee or agent of another corporation, partnership, joint venture,
trust or other enterprise, shall stand in the same position under this
Agreement with respect to the resulting or surviving corporation as he or she
would have with respect to such constituent corporation if its separate
existence had continued.  For purposes of
this Agreement, references to “other enterprises” shall include employee
benefit plans; references to “fines” shall include any excise taxes assessed on
a person with respect to an employee benefit plan; and references to “serving
at the request of the Company” shall include any service as a director,
officer, employee or agent of the Company which imposes duties on, or involves
services by, such director, officer, employee or agent with respect to an
employee benefit plan, its participants or beneficiaries; and a person who
acted in good faith and in a manner he or she reasonably believed to be in the
interest of the participants and beneficiaries of an employee benefit plan
shall be deemed to have acted in a manner “not opposed to the best interests of
the Company” as referred to in this Agreement.

8.             Counterparts.  This Agreement may be executed in
counterparts, each of which shall constitute an original.

9.             Binding
Effect; Successors and Assigns.  This
Agreement shall be binding upon the Company and its successors and assigns
(including any direct or indirect successor by purchase, merger, consolidation
or otherwise to all or substantially all of the business or assets of the
Company), and shall inure to the benefit of Indemnitee and Indemnitee’s estate,
heirs, legal representative and assigns. 
The Company shall require and cause any successor (whether direct or
indirect, and whether by purchase, merger, consolidation or otherwise) to all
or substantially all of its business or assets expressly to assume and agree to
perform this Agreement in the same manner and to the same extent that it would
be required to perform if no such succession had taken place.

10.           Attorney’s
Fees.  In the event that any action
is instituted by Indemnitee under this Agreement to enforce or interpret any of
the terms hereof, Indemnitee shall be entitled to be paid all costs and
expenses, including reasonable attorneys’ fees, incurred by Indemnitee with
respect to such action, unless as a part of such action, the court of competent
jurisdiction determines that each of the material assertions made by Indemnitee
as a basis for such action were not made in good faith or were frivolous.  In the event of an action instituted by or in
the name of the Company under this Agreement or to enforce or interpret any of
terms of this Agreement, Indemnitee shall be entitled to be paid all costs and
expenses, including reasonable attorneys’ fees, incurred by Indemnitee in
defense of such action (including with respect to Indemnitee’s counterclaims
and cross-claims made in such action), unless as a part of such action the
court determines that each of Indemnitee’s material defenses to such action
were made in bad faith or were frivolous.

11.           Notice.  All notices, requests, demands and other
communications under this Agreement shall be in writing, shall be deemed
received three business days after the date postmarked if sent by domestic
certified or registered mail, properly addressed, or if sent otherwise, when
such notice shall actually be received, and shall be delivered by Federal
Express or a similar courier, personal

 

5

 

delivery, certified or
registered air mail, or by facsimile transmission.  Addresses for notice to either party are as
follows (or at such other addresses for a party as shall be specified by like
notice):

if
to the Company:

SSA Global Technologies,
Inc.

500 W. Madison

Suite 1600

Chicago, Illinois 60661

Attention: General Counsel

Telephone No.: 312-258-6000

Fax
No.: 312-474-7500

if
to Indemnitee:

[Indemnitee]

c/o SSA Global Technologies,
Inc.

500 W. Madison

Suite 1600

Chicago, Illinois, 60061

Telephone No.: 312-258-6000

Fax No.: 312-474-7500

 

 

12.           Consent
To Jurisdiction.  The Company and
Indemnitee each hereby irrevocably consent to the jurisdiction of the courts of
the State of Delaware for all purposes in connection with any action or
proceeding which arises out of or relates to this Agreement and agree that any
action instituted under this Agreement shall be brought only in the state
courts of the State of Delaware.

13.           Choice
of Law.  This Agreement shall be
governed by and its provisions construed in accordance with the laws of the
State of Delaware, as applied to contracts between Delaware residents entered
into and to be performed entirely within Delaware.

14.           Severability.  The provisions of this Agreement shall be
severable in the event that any of the provisions hereof (including any
provision within a single section, paragraph or sentence) are held by a court
of competent jurisdiction to be invalid, void or otherwise unenforceable, and
the remaining provisions shall remain enforceable to the fullest extent permitted
by law.  Furthermore, to the fullest
extent possible, the provision of this Agreement (including, without
limitations, each portion of this Agreement containing any provision held to be
invalid, void or otherwise unenforceable, that is not itself invalid, void or
unenforceable) shall be construed so as to give effect to the intent manifested
by the provision held invalid, illegal or unenforceable.

15.           Subrogation.  In the event of payment under this Agreement,
the Company shall be subrogated to the extent of such payment to all of the
rights of recovery of Indemnitee, who shall execute all documents required and
shall do all acts that may be necessary to secure such rights and to enable the
Company effectively to bring suit to enforce such rights.

16.           Continuation of Indemnification.  The indemnification and advancement of
expenses provided by, or granted pursuant to, this Agreement shall, unless
otherwise provided when authorized or ratified, continue as to Indemnitee after
Indemnitee has ceased to be a director, officer,

 

6

 

employee or agent and shall
inure to the benefit of the heirs, executors, administrators and personal
representatives of Indemnitee.

17.           Amendment
and Termination.  No amendment,
modification, termination or cancellation of this Agreement shall be effective
unless in writing signed by both parties hereto.

18.           Integration
and Entire Agreement.  This Agreement
sets forth the entire understanding between the parties hereto and supersedes
and merges all previous written and oral negotiations, commitments,
understandings and agreements relating to the subject matter hereof between the
parties hereto.

19.           No
Construction as Employment Agreement. 
Nothing contained in this Agreement shall be construed as giving
Indemnitee any right to be retained in the employ of the Company or any of its
subsidiaries or affiliated entities.

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
first above written.

	
   

  	
  SSA
  GLOBAL TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [INDEMNITEE]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

7Exhibit 10.45

 

EXECUTION COPY

 

STOCK PURCHASE AGREEMENT

 

among

 

SSA GLOBAL TECHNOLOGIES, INC.,

 

CERBERUS CAPITAL MANAGEMENT, L.P.

 

GENERAL ATLANTIC PARTNERS 76, L.P.,

 

GAP COINVESTMENT PARTNERS II, L.P.,

 

GAPSTAR, LLC

 

and

 

GAPCO GMBH & CO. KG

 

 

Dated: March 10, 2003

 

 

Table of Contents

 

	
  ARTICLE I DEFINITIONS

  	
   

  
	
  1.1

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II PURCHASE AND SALE OF
  PREFERRED STOCK

  	
   

  
	
  2.1

  	
  Purchase and Sale
  of Preferred Stock

  	
   

  
	
  2.2

  	
  Certificate of
  Incorporation

  	
   

  
	
  2.3

  	
  Use of Proceeds

  	
   

  
	
  2.4

  	
  Closing

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III REPRESENTATIONS AND
  WARRANTIES OF THE COMPANY

  	
   

  
	
  3.1

  	
  Corporate Existence and
  Power

  	
   

  
	
  3.2

  	
  Authorization; No
  Contravention

  	
   

  
	
  3.3

  	
  Governmental
  Authorization; Third Party Consents

  	
   

  
	
  3.4

  	
  Binding Effect

  	
   

  
	
  3.5

  	
  Litigation

  	
   

  
	
  3.6

  	
  Compliance with Laws

  	
   

  
	
  3.7

  	
  Capitalization

  	
   

  
	
  3.8

  	
  No
  Default or Breach; Contractual Obligations

  	
   

  
	
  3.9

  	
  Title to Properties

  	
   

  
	
  3.10

  	
  Intentionally Omitted

  	
   

  
	
  3.11

  	
  Financial Statements

  	
   

  
	
  3.12

  	
  Taxes

  	
   

  
	
  3.13

  	
  No
  Material Adverse Change; Ordinary Course of Business

  	
   

  
	
  3.14

  	
  Investment Company

  	
   

  
	
  3.15

  	
  Private Offering

  	
   

  
	
  3.16

  	
  Labor Relations

  	
   

  
	
  3.17

  	
  Employee Benefit Plans

  	
   

  
	
  3.18

  	
  Title to Assets

  	
   

  
	
  3.19

  	
  Liabilities

  	
   

  
	
  3.20

  	
  Intellectual Property

  	
   

  
	
  3.21

  	
  Network
  Redundancy and Computer Back-up

  	
   

  
	
  3.22

  	
  Privacy of Customer
  Information

  	
   

  
	
  3.23

  	
  Potential
  Conflicts of Interest; Affiliate Transaction

  	
   

  
	
  3.24

  	
  Trade Relations

  	
   

  
	
  3.25

  	
  Outstanding Borrowing

  	
   

  
	
  3.26

  	
  Insurance

  	
   

  
	
  3.27

  	
  [Intentionally Omitted.]

  	
   

  
	
  3.28

  	
  Broker’s, Finder’s or
  Similar Fees

  	
   

  
	
  3.29

  	
  Disclosure

  	
   

  
	
  3.30

  	
  Acquisition Documents

  	
   

  

 

i

 

	
  ARTICLE IV REPRESENTATIONS AND
  WARRANTIES OF THE OTHER PARTIES

  	
   

  
	
  4.1

  	
  Representations
  and Warranties of Purchasers

  	
   

  
	
  4.2

  	
  Representations
  and Warranties of Cerberus

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V CONDITIONS TO THE OBLIGATION
  OF THE PURCHASERS TO CLOSE

  	
   

  
	
  5.1

  	
  Representation and
  Warranties

  	
   

  
	
  5.2

  	
  Compliance with this
  Agreement

  	
   

  
	
  5.3

  	
  Officer’s Certificate

  	
   

  
	
  5.4

  	
  Secretary’s Certificate

  	
   

  
	
  5.5

  	
  Filing of
  Certificate of Incorporation

  	
   

  
	
  5.6

  	
  Purchased Shares

  	
   

  
	
  5.7

  	
  Stockholders Agreement

  	
   

  
	
  5.8

  	
  Registration Rights
  Agreement

  	
   

  
	
  5.9

  	
  Opinion of Counsel

  	
   

  
	
  5.10

  	
  No Material Adverse Change

  	
   

  
	
  5.11

  	
  Consents and Approvals

  	
   

  
	
  5.12

  	
  No Material Judgment or
  Order

  	
   

  
	
  5.13

  	
  No Litigation

  	
   

  
	
  5.14

  	
  Good Standing Certificates

  	
   

  
	
  5.15

  	
  HSR Act Filing

  	
   

  
	
  5.16

  	
  Prior Agreements

  	
   

  
	
  5.17

  	
  Rights Agreement

  	
   

  
	
  5.18

  	
  Securities Exchange
  Agreement

  	
   

  
	
  5.19

  	
  Subordinated Promissory
  Note

  	
   

  
	
  5.20

  	
  Payoff Letter

  	
   

  
	
  5.21

  	
  Letter of Credit

  	
   

  
	
  5.22

  	
  Opinion of General Counsel

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI CONDITIONS TO THE OBLIGATION
  OF THE COMPANY TO CLOSE

  	
   

  
	
  6.1

  	
  Payment of Purchase Price

  	
   

  
	
  6.2

  	
  Stockholders Agreement

  	
   

  
	
  6.3

  	
  Registration Rights
  Agreement

  	
   

  
	
  6.4

  	
  HSR Act Filing

  	
   

  
	
  6.5

  	
  Representations and
  Warranties

  	
   

  
	
  6.6

  	
  Compliance with Agreement

  	
   

  
	
  6.7

  	
  Certificate

  	
   

  
	
  6.8

  	
  Litigation

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII INDEMNIFICATION

  	
   

  
	
  7.1

  	
  Indemnification

  	
   

  
	
  7.2

  	
  Notification

  	
   

  
	
  7.3

  	
  Contribution

  	
   

  
	
  7.4

  	
  Limitation
  on Indemnification and Contribution

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII AFFIRMATIVE COVENANTS

  	
   

  

 

ii

 

	
  8.1

  	
  Preservation of Existence

  	
   

  
	
  8.2

  	
  Interim Covenants

  	
   

  
	
  8.3

  	
  Financial
  Statements and Other Information

  	
   

  
	
  8.4

  	
  Reservation of Common Stock

  	
   

  
	
  8.5

  	
  Insurance

  	
   

  
	
  8.6

  	
  Books and Records

  	
   

  
	
  8.7

  	
  Back-ups of Computer
  Software

  	
   

  
	
  8.8

  	
  Inspection

  	
   

  
	
  8.9

  	
  The Acquisition

  	
   

  
	
  8.10

  	
  Existing Debt

  	
   

  
	
  8.11

  	
  Covenants of Cerberus

  	
   

  
	
  8.12

  	
  Intellectual Property

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX TERMINATION OF AGREEMENT

  	
   

  
	
  9.1

  	
  Termination

  	
   

  
	
  9.2

  	
  [Intentionally Omitted.]

  	
   

  
	
  9.3

  	
  Survival

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE X MISCELLANEOUS

  	
   

  
	
  10.1

  	
  Survival of
  Representations and Warranties

  	
   

  
	
  10.2

  	
  Notices

  	
   

  
	
  10.3

  	
  Successors
  and Assigns; Third Party Beneficiaries

  	
   

  
	
  10.4

  	
  Amendment and Waiver

  	
   

  
	
  10.5

  	
  Counterparts

  	
   

  
	
  10.6

  	
  Headings

  	
   

  
	
  10.7

  	
  GOVERNING LAW;
  CONSENT TO JURISDICTION

  	
   

  
	
  10.8

  	
  Severability

  	
   

  
	
  10.9

  	
  Rules of Construction

  	
   

  
	
  10.10

  	
  Entire Agreement

  	
   

  
	
  10.11

  	
  Fees

  	
   

  
	
  10.12

  	
  Publicity; Confidentiality

  	
   

  
	
  10.13

  	
  Further Assurances

  	
   

  

 

iii

 

	
  EXHIBITS

  
	
  A

  	
  Amended and Restated Subordinated Promissory Note

  
	
  B

  	
  Form of By-laws

  
	
  C

  	
  Form of Amended and Restated Certificate of
  Incorporation

  
	
  D

  	
  Form of Registration Rights Agreement

  
	
  E

  	
  Form of Securities Exchange Agreement

  
	
  F

  	
  Form of Stockholders Agreement

  
	
  G

  	
  Form of Schulte Roth & Zabel LLP Opinion

  
	
  H

  	
  Form of Payoff Letter

  
	
  I

  	
  Form of General Counsel Opinion

  
	
   

  	
   

  
	
  SCHEDULES

  
	
  2.1

  	
  Purchased Shares and Purchase Price

  
	
  3.3

  	
  Authorizations and Consents

  
	
  3.5

  	
  Litigation

  
	
  3.7(a)

  	
  List of Equity Holders

  
	
  3.7(b)

  	
  List of Subsidiaries and their Equity Holders

  
	
  3.8(a)

  	
  Contractual Obligations

  
	
  3.8(b)

  	
  Software License Agreements and Professional Service
  Agreements

  
	
  3.8(c)

  	
  Employment Agreements

  
	
  3.12

  	
  Taxes

  
	
  3.13

  	
  Material Adverse
  Changes

  
	
  3.17

  	
  Employee Benefit
  Plans

  
	
  3.18

  	
  Title to Assets

  
	
  3.19

  	
  Liabilities

  
	
  3.20(a)(ii)

  	
  Intellectual Property Owned by the Company and
  Filings and Applications Therefor

  
	
  3.20(a)(iii)

  	
  Intellectual Property Licenses, Sublicenses,
  Distributor Agreements and Other Agreements

  
	
  3.20(a)(iv)

  	
  Infringements by the Company of Intellectual
  Property of Others

  
	
  3.20(a)(v)

  	
  Intellectual Property Litigation

  
	
  3.20(b)

  	
  Infringements of Intellectual Property of the
  Company

  
	
  3.20(d)

  	
  Licenses or Other Agreements Requiring Material
  Royalty Payments

  
	
  3.21

  	
  Network Redundancy and Computer Back-up

  
	
  3.23

  	
  Potential Conflicts of Interest

  
	
  3.25

  	
  Outstanding Borrowing

  
	
  3.26

  	
  Insurance

  
	
  3.30

  	
  Acquisition Documents

  

 

iv

 

STOCK PURCHASE AGREEMENT

 

STOCK PURCHASE AGREEMENT,
dated March 10, 2003 (this “Agreement”), among SSA Global
Technologies, Inc., a Delaware corporation (the “Company”), Cerberus
Capital Management, L.P., a Delaware limited partnership (“Cerberus”),
General Atlantic Partners 76, L.P., a Delaware limited partnership (“GAP LP”),
GAP Coinvestment Partners II, L.P., a Delaware limited partnership (“GAP
Coinvestment”), GapStar, LLC, a Delaware limited liability company (“GapStar”),
and GAPCO GmbH & Co. KG, a German limited partnership (“GmbH
Coinvestment” and, collectively with GAP LP, GAP Coinvestment, and GapStar,
the “Purchasers”).

 

WHEREAS, the Company
proposes to issue and sell to each of the Purchasers the aggregate number of
shares, par value $0.01 per share, of Series A Cumulative Convertible
Preferred Stock of the Company (the “Preferred Stock”) set forth
opposite the name of such Purchaser on Schedule 2.1 hereto for the
aggregate purchase price set forth opposite such Purchaser’s name on Schedule 2.1
hereto;

 

WHEREAS, each share of
Preferred Stock is initially convertible (subject to adjustment) into one
share, par value $0.01 per share, of common stock of the Company (the “Common
Stock”);

 

WHEREAS, in order to
induce the Purchasers to purchase their shares of Preferred Stock, the Company
has agreed, among other things, to cause the termination of all rights existing
under the Rights Agreement (as defined below) following surrender of the
outstanding rights as contemplated hereby; and

 

WHEREAS, pursuant to the
Securities Exchange Agreement (as defined below), among the Company, Madeleine
L.L.C., a New York limited liability company (“Madeleine”), SSA
Investor, LLC, a Delaware limited liability company (“SSA Investor”),
Ableco, L.L.C., a Delaware limited liability company (“Ableco”),
Cerberus Partners, L.P., a Delaware limited partnership (“Cerberus Partners”),
Cerberus Institutional Partners, L.P., a Delaware limited partnership (“Cerberus
Institutional Partners”) and SSA Warrant Holdings, LLC, a Delaware limited
liability company (“Senior Warrantholder” and, together with Madeleine,
SSA Investor, Ableco, Cerberus Partners and Cerberus Institutional Partners, the
“SSA Stockholders”), each of the SSA Stockholders has agreed,
simultaneously with or prior to the Closing, to exchange $10,000,000 of
outstanding indebtedness under the Subordinated Promissory Note (as hereinafter
defined), warrants to purchase Common Stock (as defined below), shares of
Common Stock and shares of the Company’s currently authorized, non-convertible
Series A Preferred Stock and certain rights under the Rights Agreement (as
defined below) set forth opposite the name of such SSA Stockholder on Schedule 2.1
of the Securities Exchange Agreement for an aggregate number of 2,250,000
shares of Preferred Stock to be allocated among the SSA Stockholders as
determined by the SSA Stockholders prior to Closing (as defined below) and set
forth on Schedule 3.7(a).

 

 

NOW, THEREFORE, in
consideration of the mutual covenants and agreements set forth herein and for
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto agree as follows:

 

ARTICLE I

 

DEFINITIONS

 

1.1                                 Definitions. As used in this Agreement, and unless
the context requires a different meaning, the following terms have the meanings
indicated:

 

“Ableco” has the
meaning set forth in the recitals to this Agreement.

 

“Acquisition Documents”
means the Infinium Merger Agreement and all documents executed in connection
therewith.

 

“Affiliate” shall
mean any Person who is an “affiliate” as defined in Rule 12b-2 of the General
Rules and Regulations under the Exchange Act. 
In addition, the following shall be deemed to be Affiliates of GAP
Coinvestment, GAP LP, GapStar and GmbH Coinvestment:  (a) GAP LLC, the members of GAP LLC,
GmbH Management, the shareholders of GmbH Management, the limited partners of
each of GAP Coinvestment, GAP LP and GmbH Coinvestment, and the members of
GapStar; (b) any Affiliate of GAP LLC, the members of GAP LLC, the limited
partners of GAP Coinvestment or GmbH Coinvestment; or the members of GapStar;
and (c) any limited liability company or partnership a majority of whose members
or partners, as the case may be, are members or former members of GAP LLC or
consultants or key employees of General Atlantic Service Corporation, a
Delaware corporation and an Affiliate of GAP LLC.  In addition, GAP LP, GAP Coinvestment,
GapStar and GmbH Coinvestment shall be deemed to be Affiliates of one another.

 

“Agreement” means
this Agreement as the same may be amended, supplemented or modified in
accordance with the terms hereof.

 

“Amended and Restated
Subordinated Promissory Note” means the Amended and Restated Subordinated
Promissory Note attached hereto as Exhibit A.

 

“Assets” has the
meaning set forth in Section 3.18 of this Agreement.

 

“Audited Financial
Statements” has the meaning set forth in Section 3.11 of this
Agreement.

 

“Basket Amount”
has the meaning set forth in Section 7.4 of this Agreement.

 

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

 

2

 

“Business Day”
means any day other than a Saturday, Sunday or other day on which commercial
banks in the State of New York are authorized or required by law or executive
order to close.

 

“By-laws” means
the by-laws of the Company in effect on the Closing Date substantially in the
form attached hereto as Exhibit B, as the same may be amended from time
to time in accordance with the terms of the Stockholders Agreement.

 

“Cerberus” has the
meaning set forth in the preamble to this Agreement.

 

“Cerberus
Institutional Partners” has the meaning set forth in the recitals to this
Agreement.

 

“Cerberus Partners”
has the meaning set forth in the recitals to this Agreement.

 

“Certificate of
Incorporation” means the Second Amended and Restated Certificate of
Incorporation to be filed with the Secretary of State of the State of Delaware
on or before the Closing Date in the form attached hereto as Exhibit C,
which shall, among other things, set forth the terms of the Preferred Stock.

 

“Claims” has the
meaning set forth in Section 3.5 of this Agreement.

 

“Closing” has the
meaning set forth in Section 2.4 of this Agreement.

 

“Closing Date” has
the meaning set forth in Section 2.4 of this Agreement.

 

“Code” means the
Internal Revenue Code of 1986, as amended, or any successor statute thereto.

 

“Commission” means
the United States Securities and Exchange Commission or any similar agency then
having jurisdiction to enforce the Securities Act.

 

“Commonly Controlled
Entity” means any entity which is under common control with the Company
within the meaning of Code section 414(b), (c), (m), (o) or (t).

 

“Common Stock” has
the meaning set forth in the recitals to this Agreement.

 

“Company” has the
meaning set forth in the preamble to this Agreement.

 

“Company Plans”
has the meaning set forth in Section 3.17 of this Agreement.

 

“Competitor” means
a systems solutions provider, developer of enterprise resource planning
software or any other entity or person who is engaged in the promotion of
software or related services which are directly competitive with the software
or related services offerings available from the Company, its Subsidiaries or
Infinium, including, 

 

3

 

but not limited to, the
development, production, distribution, sales, licensing, or marketing of
software products (or the provision of related services) designed to run on IBM
AS/400 or HP 9000 computer platforms or any successor platforms, or in an NT
operating environment.

 

“Condition of the
Company” means the assets, business, properties, operations or financial
condition of the Company and its Subsidiaries, taken as a whole, but
determination of the Condition of the Company shall take into account any
adverse event, change or occurrence, effect, development or circumstance
resulting from or relating to general business, economic, industry or financial
market conditions, including, without limitation, any such conditions arising
out of acts of terrorism or war or any armed hostilities to the extent such
acts directly affect the Company or its assets or employees.

 

“Contingent Obligation”
means, as applied to any Person, any direct or indirect liability of that
Person with respect to any Indebtedness, lease, dividend, guaranty, letter of
credit or other obligation, contractual or otherwise (the “primary
obligation”) of another Person (the “primary obligor”), whether or
not contingent, (a) to purchase, repurchase or otherwise acquire such
primary obligations or any property constituting direct or indirect security
therefor, (b) to advance or provide funds (i) for the payment or
discharge of any such primary obligation, or (ii) to maintain working
capital or equity capital of the primary obligor or otherwise to maintain the
net worth or solvency or any balance sheet item, level of income or financial
condition of the primary obligor, (c) to purchase property, securities or
services primarily for the purpose of assuring the owner of any such primary
obligation of the ability of the primary obligor to make payment of such
primary obligation, or (d) otherwise to assure or hold harmless the owner
of any such primary obligation against loss or failure or inability to perform
in respect thereof.  The amount of any
Contingent Obligation shall be deemed to be an amount equal to the stated or
determinable amount of the primary obligation in respect of which such Contingent
Obligation is made or, if not stated or determinable, the maximum reasonably
anticipated liability in respect thereof.

 

“Contractual
Obligations” means, as to any Person, any provision of any security issued
by such Person or of any agreement, undertaking, contract, indenture, mortgage,
deed of trust or other instrument to which such Person is a party or by which
it or any of its property is bound.

 

“Copyrights” means
any foreign or United States copyright registrations and applications for registration
thereof, and any non-registered copyrights.

 

“Credit Agreement”
means that certain Loan and Security Agreement, by and among SSA Acquisition
Corporation and certain of its subsidiaries as the Obligors, the financial
institutions that are identified therein, as the Lenders, and Foothill Capital
Corporation, as Agent, dated as of July 31, 2000, as amended to the date
hereof, providing for loans to the Company in an aggregate amount of up to
$53,550,000.

 

4

 

“ERISA” means the
Employee Retirement Income Security Act of 1974, as amended.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended, and the rules and
regulations of the Commission thereunder.

 

“Financial Statements”
has the meaning set forth in Section 3.11 of this Agreement.

 

“GAAP” means
United States generally accepted accounting principles in effect from time to
time.

 

“GAP Coinvestment”
has the meaning set forth in the preamble to this Agreement.

 

“GAP LLC” means
General Atlantic Partners, LLC, a Delaware limited liability company and the
general partner of GAP LP, and the managing member of GapStar and any
successor to such entity.

 

“GAP LP” has the
meaning set forth in the preamble to this Agreement.

 

“GapStar” has the
meaning set forth in the preamble to this Agreement.

 

“GmbH Coinvestment”
has the meaning set forth in the preamble to this Agreement.

 

“GmbH Management”
means GAPCO Management GmbH, a German company with limited liability and the
general partner of GmbH Coinvestment, and any successor to such entity.

 

“Governmental
Authority” means the government of any nation, state, city, locality or
other political subdivision thereof, any entity exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining
to government, and any corporation or other entity owned or controlled, through
stock or capital ownership or otherwise, by any of the foregoing.

 

“HSR Act” has the
meaning set forth in Section 3.3.

 

“Indebtedness”
means, as to any Person, (a) all obligations of such Person for borrowed
money (including, without limitation, reimbursement and all other obligations
with respect to surety bonds, letters of credit and bankers’ acceptances,
whether or not matured), (b) all obligations of such Person to pay the
deferred purchase price of property or services, except trade accounts payable
and accrued commercial or trade liabilities arising in the ordinary course of
business, (c) all interest rate and currency swaps, caps, collars and
similar agreements or hedging devices under which payments are obligated to be
made by such Person, whether periodically or upon the happening of a
contingency, (d) all indebtedness created or arising under any conditional
sale or other title retention agreement with respect to property acquired by
such Person (even though 

 

5

 

the rights and remedies
of the seller or lender under such agreement in the event of default are
limited to repossession or sale of such property), (e) all obligations of
such Person under leases which have been or should be, in accordance with GAAP,
recorded as capital leases, (f) all indebtedness secured by any Lien
(other than Liens in favor of lessors under leases other than leases included
in clause (e)) on any property or asset owned or held by that Person
regardless of whether the indebtedness secured thereby shall have been assumed
by that Person or is non-recourse to the credit of that Person, and
(g) any Contingent Obligation of such Person.

 

“Indemnified Party”
has the meaning set forth in Section 7.1 of this Agreement.

 

“Indemnifying Party”
has the meaning set forth in Section 7.1 of this Agreement.

 

“Infinium” means
Infinium Software, Inc., a Massachusetts corporation.

 

“Infinium Merger Agreement”
means that certain Agreement and Plan of Merger, dated as of October 28,
2002, by and among the Company, Newco and Infinium.

 

“Intellectual Property”
has the meaning set forth in Section 3.20(a)(i) of this Agreement.

 

“Internet Assets”
means any Internet domain names and any rights in and to sites on the worldwide
web, including rights in and to any text, graphics, audio and video files and
html or other code incorporated in such sites.

 

“Knowledge” (a) as
applied to the Company, means the knowledge of Mike Greenough, Graeme Cooksley,
John Walles, Kirk Isaacson, Shelley Isenberg, Mark Rosenberg, Howard Sproxton,
Marvyn Turk, Rick Gonzales, Warren Fletcher, Oscar Garcia-Velasco, Martin
Ambrose, Philip Gray and Brian Kite, after reasonable inquiry of the persons
who are primarily responsible for the relevant areas of the Company’s business,
and (b) as applied to Cerberus means the actual, personal knowledge of Mark
Neporent, without inquiry.

 

“Liabilities” has
the meaning set forth in Section 3.19 of this Agreement.

 

“Lien” means any
mortgage, deed of trust, pledge, hypothecation, assignment, encumbrance, lien
(statutory or other) or preference, priority, right or other security interest
or preferential arrangement of any kind or nature whatsoever.

 

“Losses” has the
meaning set forth in Section 7.1 of this Agreement.

 

“Madeleine” has
the meaning set forth in the recitals to this Agreement.

 

“Material Contractual
Obligations” has the meaning set forth in Section 3.8 of this
Agreement.

 

6

 

“Merger” means the
merger of Newco with and into Infinium pursuant to the Infinium Merger
Agreement.

 

“Newco” means
Samurai Merger Subsidiary, Inc., a Massachusetts corporation.

 

“Orders” has the
meaning set forth in Section 3.2 of this Agreement.

 

“Original Stockholders
Agreement” means the Stockholders Agreement, dated as of July 31,
2000, among the Company, the SSA Stockholders and SSA Investment Corp.

 

“Payoff Letter”
has the meaning set forth in Section 5.20 of this Agreement.

 

“Patents” means
any foreign or United States patents and patent applications, including any
divisions, continuations, continuations-in-part, substitutions or reissues
thereof, whether or not patents are issued on such applications and whether or
not such applications are modified, withdrawn or resubmitted.

 

“Permits” has the
meaning set forth in Section 3.6(b) of this Agreement.

 

“Person” means any
individual, firm, corporation, partnership, trust, incorporated or
unincorporated association, joint venture, joint stock company, limited
liability company, Governmental Authority or other entity of any kind, and
shall include any successor (by merger or otherwise) of such entity.

 

“Plan” means any
employee benefit plan, arrangement, policy, program, agreement or commitment
(whether or not an employee plan within the meaning of section 3(3) of
ERISA), including, without limitation, any employment, consulting or deferred
compensation agreement, executive compensation, bonus, incentive, pension,
profit-sharing, savings, retirement, stock option, stock purchase or severance
pay plan, any life, health, disability or accident insurance plan, whether oral
or written, whether or not subject to ERISA, as to which the Company or any
Commonly Controlled Entity has or in the future could have any direct or
indirect, actual or contingent liability.

 

“Preferred Stock”
has the meaning set forth in the recitals to this Agreement.

 

“Proxy Statement”
has the meaning set forth in Section 8.11 of this Agreement.

 

“Purchased Shares” has the meaning set forth
in Section 2.1 of this Agreement.

 

“Purchasers” has
the meaning set forth in the preamble to this Agreement.

 

7

 

“Registration Rights Agreement”
means the Registration Rights Agreement in the form attached hereto as Exhibit D.

 

“Requirements of Law”
means, as to any Person, any law, statute, treaty, rule, regulation, right,
privilege, qualification, license or franchise or determination of an
arbitrator or a court or other Governmental Authority or stock exchange, in
each case applicable or binding upon such Person or any of its property or to
which such Person or any of its property is subject or pertaining to any or all
of the transactions contemplated or referred to herein.

 

“Retiree Welfare Plan”
means any welfare plan (as defined in Section 3(1) of ERISA) that provides
benefits to current or former employees beyond their retirement or other
termination of service (other than coverage mandated by Section 4980A of
the Code, commonly referred to as “COBRA,” the cost of which is fully paid by
the current or former employee or his or her dependents).

 

“Rights Agreement”
means the Rights Agreement, dated as of July 31, 2000, between the Company
in its own capacity and the Company in its capacity as Rights Agent thereunder.

 

“Securities Act”
means the Securities Act of 1933, as amended, and the rules and regulations of
the Commission thereunder.

 

“Securities Exchange
Agreement” means the Securities Exchange Agreement, dated the date hereof,
among the Company and the SSA Stockholders, in the form attached hereto as Exhibit
E.

 

“Senior Warrantholder”
has the meaning set forth in the recitals to this Agreement.

 

“Software” means
any computer software programs, source code, object code, data and
documentation, including, without limitation, any computer software programs
that incorporate and run the Company’s pricing models, formulae and algorithms.

 

“SSA Investor” has
the meaning set forth in the recitals to this Agreement.

 

“SSA Stockholders”
has the meaning set forth in the recitals to this Agreement.

 

“Stock Equivalents”
means any security, obligation or right which is by its terms, directly or
indirectly, convertible into or exchangeable or exercisable for shares of
common stock or other capital stock of the Company, and any option, warrant or
other subscription or purchase right with respect to common stock or such other
capital stock.

 

“Stockholders Agreement” means the
Stockholders Agreement in the form attached hereto as Exhibit F.

 

8

 

“Stock Option Plan”
means the Company’s stock option plan to be established by the Company after
the date hereof and pursuant to which an aggregate of up to 529,412 shares of
restricted stock and options to purchase shares of Common Stock will be
reserved and available for grant to officers, directors, employees and
consultants of the Company.

 

“Subordinated
Promissory Note” means the Subordinated Promissory Note, dated as of December 19,
2002, made by the Company in favor of Madeleine in the principal amount of
$125,000,000.

 

“Subsidiaries”
means, as of the relevant date of determination, with respect to any Person, a
corporation or other Person of which 50% or more of the voting power of the
outstanding voting equity securities or 50% or more of the outstanding economic
equity interest is held, directly or indirectly, by such Person.  Unless otherwise qualified, or the context
otherwise requires, all references to a “Subsidiary” or to “Subsidiaries”
in this Agreement shall refer to a Subsidiary or Subsidiaries of the Company; provided,
that unless expressly stated, such references shall not be deemed to include
(a) Infinium or any of its Subsidiaries, even though the Merger has been
completed prior to the Closing Date hereunder, or (b) any Person which the
Company shall have agreed to acquire after the date hereof, if the Company
holds 50% or more of the voting power of the outstanding voting equity
securities solely as a result of voting agreements and/or proxies executed by
stockholders of such Person in connection with such acquisition.

 

“Taxes” means any
federal, state, provincial, county, local, foreign and other taxes (including,
without limitation, income, profits, windfall profits, alternative, minimum,
accumulated earnings, personal holding company, capital stock, premium,
estimated, excise, sales, use, occupancy, gross receipts, franchise, ad
valorem, severance, capital levy, production, transfer, withholding,
employment, unemployment compensation, payroll and property taxes, import
duties and other governmental charges and assessments), whether or not measured
in whole or in part by net income, and including deficiencies, interest,
additions to tax or interest, and penalties with respect thereto, and including
expenses associated with contesting any proposed adjustments related to any of
the foregoing.

 

“Trademarks” means
any foreign or United States trademarks, service marks, trade dress, trade
names, brand names, designs and logos, corporate names, product or service
identifiers, whether registered or unregistered, and all registrations and
applications for registration thereof.

 

“Trade Secrets”
means any trade secrets, research records, processes, procedures, manufacturing
formulae, technical know-how, technology, blue prints, designs, plans,
inventions (whether patentable and whether reduced to practice), invention
disclosures and improvements thereto.

 

9

 

“Transaction Documents”
means, collectively, this Agreement, the Stockholders Agreement, the
Registration Rights Agreement, the Securities Exchange Agreement, the
Certificate of Incorporation and all of the Acquisition Documents.

 

“Unaudited Financial
Statements” has the meaning set forth in Section 3.11 of this
Agreement.

 

ARTICLE II

 

PURCHASE AND SALE OF PREFERRED
STOCK

 

2.1                                 Purchase
and Sale of Preferred Stock  Subject
to the terms and conditions herein set forth, the Company agrees to issue and
sell to each Purchaser, and each Purchaser, severally and not jointly, agrees
to purchase from the Company, on the Closing Date the aggregate number of
shares of Preferred Stock set forth opposite such Purchaser’s name on Schedule 2.1
hereto, for the aggregate purchase price set forth opposite such Purchaser’s
name on Schedule 2.1 hereto (all of the shares of Preferred Stock
being purchased pursuant hereto being referred to herein as the “Purchased
Shares”); provided, that in the event any Purchaser defaults on its
obligation to purchase any Purchased Shares hereunder, the remaining Purchasers
shall, or shall cause one or more of their respective Affiliates to, purchase
the Purchased Shares in the place of such defaulting Purchaser as contemplated
hereby (and to become a party to this Agreement, the Stockholders Agreement and
the Registration Rights Agreement, if it is not already a party thereto).

 

2.2                                 Certificate
of Incorporation.  The Purchased
Shares shall have the preferences and rights set forth in the Certificate of
Incorporation.

 

2.3                                 Use
of Proceeds.  The Company shall use
the proceeds from the sale of the Purchased Shares to the Purchasers to repay
all amounts borrowed under the Credit Agreement together with interest thereon
and the balance of such proceeds to reduce the amounts borrowed under the Subordinated
Promissory Note together with interest thereon.

 

2.4                                 Closing.  Unless this Agreement shall have terminated
pursuant to Article IX, and subject to the satisfaction or waiver of the
conditions set forth in Articles V and VI, the closing of the sale and
purchase of the Purchased Shares (the “Closing”) shall take place at the
offices of Paul, Weiss, Rifkind, Wharton & Garrison LLP, 1285 Avenue of the
Americas, New York, New York 10019-6064, at 10:00 a.m., local time, on the
second Business Day following the date upon which the conditions set forth in
Articles V and VI shall be satisfied or waived in accordance with this
Agreement, or at such other time, place and date that the Company and the
Purchasers may agree in writing (the “Closing Date”).  On the Closing Date, the Company shall
deliver to each of the Purchasers a certificate or certificates in definitive
form and registered in the name of each such Purchaser, representing its
Purchased Shares against delivery by each of the Purchasers to the Company of
the aggregate purchase price therefor by wire transfer of immediately available
funds.

 

10

 

ARTICLE III

 

REPRESENTATIONS AND WARRANTIES OF
THE COMPANY

 

The Company represents
and warrants to each of the Purchasers as follows:

 

3.1                                 Corporate
Existence and Power.  The Company
(a) is a corporation duly organized, validly existing and in good standing
under the laws of the jurisdiction of its incorporation; (b) has all
requisite power and authority to own and operate its property, to lease the
property it operates as lessee and to conduct the business in which it is
currently, or is proposed to be, engaged; and (c) is duly qualified as a
foreign corporation, licensed and in good standing under the laws of each
jurisdiction in which its ownership, lease or operation of property or the
conduct of its business requires such qualification, except where failure to so
qualify would not have a material adverse effect on the Condition of the
Company.  Except as set forth on Schedule 3.1,
each Subsidiary is an entity duly organized (to the extent applicable under the
laws of the jurisdiction of its organization), validly existing (to the extent
applicable under the laws of the jurisdiction of its organization) and in good
standing under the laws of the jurisdiction of its incorporation and has the
corporate power (or other requisite legal power under the laws of the relevant
jurisdiction) and authority to carry on its business as now being conducted.  The Company has the corporate power and
authority to execute, deliver and perform its obligations under this Agreement
and each of the other Transaction Documents.

 

3.2                                 Authorization;
No Contravention.  The execution,
delivery and performance by the Company of this Agreement and each of the other
Transaction Documents that it is a party to and the transactions contemplated
hereby and thereby (a) have been duly authorized by all necessary
corporate or partnership action of the Company; (b) do not contravene the
terms of the Certificate of Incorporation or the By-laws, or the articles of
incorporation or by-laws or other organizational documents of any of the
Company’s Subsidiaries; (c) do not violate, conflict with or result in any
breach, default or contravention of (or with due notice or lapse of time or
both would result in any breach, default or contravention of), or the creation
of any Lien under, any Contractual Obligation of the Company or its
Subsidiaries or any Requirement of Law applicable to the Company or its Subsidiaries;
and (d) do not violate any judgment, injunction, writ, award, decree or
order of any nature (collectively, “Orders”) of any Governmental
Authority against, or binding upon, the Company or its Subsidiaries.

 

3.3                                 Governmental
Authorization; Third Party Consents. 
Except as set forth on Schedule 3.3 and except for filings
required under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as
amended, and the rules and regulations promulgated thereunder (the “HSR Act”),
no approval, consent, compliance, exemption, authorization or other action by,
or notice to, or filing with, any Governmental Authority or any other Person,
and no lapse of a waiting period under a Requirement of Law, is necessary or
required in connection with the execution, delivery or performance 

 

11

 

(including, without limitation, the sale, issuance and delivery of the
Purchased Shares) by, or enforcement against, the Company of this Agreement and
the other Transaction Documents to which each such Person is a party or the
transactions contemplated hereby and thereby.

 

3.4                                 Binding
Effect.  This Agreement and the
Securities Exchange Agreement have been, and as of the Closing Date each of the
other Transaction Documents will have been, duly executed and delivered by the
Company, and this Agreement and the Securities Exchange Agreement constitute,
and as of the Closing Date each of the other Transaction Documents will
constitute, the legal, valid and binding obligations of the Company enforceable
against the Company in accordance with their terms, except as enforceability
may be limited by applicable bankruptcy, insolvency, reorganization, fraudulent
conveyance or transfer, moratorium or similar laws affecting the enforcement of
creditors’ rights generally or by equitable principles relating to
enforceability (regardless of whether considered in a proceeding at law or in
equity).

 

3.5                                 Litigation.  Except as set forth on Schedule 3.5,
there are no actions, suits, proceedings, claims, complaints, disputes,
arbitrations or investigations (collectively, “Claims”) pending or, to
the Knowledge of the Company, threatened, at law, in equity, in arbitration or
before any Governmental Authority against the Company or its Subsidiaries.  The foregoing includes, without limitation,
Claims pending or, to the Knowledge of the Company, threatened or any basis
therefor Known by the Company involving the prior employment of any of the
employees of the Company or its Subsidiaries, their use in connection with the
Company’s business of any information or techniques allegedly proprietary to
any of their former employers or their obligations under any agreements with
prior employers.  No Order has been
issued by any court or other Governmental Authority against the Company
purporting to enjoin or restrain the execution, delivery or performance of this
Agreement or any of the other Transaction Documents.

 

3.6                                 Compliance
with Laws.

 

(a)                                  Except
as set forth on Schedule 3.12, each of the Company and its
Subsidiaries is in compliance in all material respects with all Requirements of
Law and all Orders issued by any court or Governmental Authority against the
Company and such Subsidiaries.  To the
Company’s Knowledge, there is no existing or proposed Requirement of Law which
could reasonably be expected to prohibit or restrict the Company or any of its
Subsidiaries from, or otherwise materially adversely effect the Company or any
of its Subsidiaries in, conducting its business in any jurisdiction in which it
now conducts or proposes to conduct its business.

 

(b)                                 (i) The
Company and its Subsidiaries have all licenses, permits and approvals of any
Governmental Authority (collectively, “Permits”) that are necessary for
the conduct of the business of the Company or any of its Subsidiaries except
where the failure to have such a Permit would not have a material adverse
effect on the Condition of the Company; (ii) such Permits are in full
force and effect; and (iii) no material violations are or have been
recorded in respect of any Permit.

 

12

 

(c)                                  No
material expenditure is presently required by the Company or any of its
Subsidiaries to comply with any existing Requirement of Law or Order.

 

3.7                                 Capitalization.

 

(a)                                  On
the Closing Date, after giving effect to the transactions contemplated by this
Agreement and the Securities Exchange Agreement, the authorized capital stock
of the Company shall consist of (i) 12,000,000 shares of Common Stock, of which
no shares are issued and outstanding, (ii) 4,000,000 shares of preferred
stock of which 3,000,000 shares are issued and outstanding as Preferred
Stock, and (iii) 1,000,000 shares of undesignated “blank check” preferred
stock.  On the Closing Date, after giving
effect to the transactions contemplated by this Agreement and the Securities
Exchange Agreement, one share of Preferred Stock shall be convertible into
one share of Common Stock.  Schedule 3.7(a)
sets forth, as of the Closing Date, after giving effect to the transactions
contemplated by this Agreement and the Securities Exchange Agreement, a true
and complete list of (x) the stockholders of the Company (including any trust
or escrow agent arrangement created in connection with any employee stock
option plan) and, opposite the name of each stockholder, the amount of all
outstanding shares of Common Stock and Preferred Stock owned by such
stockholder and (y) the holders of Stock Equivalents and, opposite the name of
each holder, the amount of Stock Equivalents owned by such holder.  Except as set forth on Schedule 3.7(a),
as of the Closing Date, after giving effect to the transactions contemplated by
this Agreement and the Securities Exchange Agreement, no Stock Equivalents
shall be outstanding, other than the Preferred Stock.  The Company has reserved an aggregate of
3,000,000 shares of Common Stock for issuance upon conversion of the Preferred
Stock.  Except as set forth on Schedule 3.7(a)
and except for the Preferred Stock, as of the Closing Date, after giving effect
to the transactions contemplated by this Agreement and the Securities Exchange
Agreement, there shall be no options, warrants, conversion privileges,
subscription or purchase rights or other rights presently outstanding to
purchase or otherwise acquire (i) any authorized but unissued,
unauthorized or treasury shares of the Company’s capital stock, (ii) any
Stock Equivalents or (iii) any other securities of the Company.  Except as set forth on Schedule 3.7(a),
as of the date hereof and as of the Closing Date, there are or shall be, as the
case may be, no commitments, contracts, agreements, arrangements or
understandings by the Company to issue any shares of the Company’s capital
stock or any Stock Equivalents or other securities of the Company.  The Purchased Shares are duly authorized, and
when issued and sold to the Purchasers in accordance with this Agreement, will
be validly issued, fully paid and non-assessable, will be issued in compliance
with the registration and qualification requirements of all applicable federal,
state and foreign securities laws and will be free and clear of all other Liens
(other than those imposed by the Stockholders Agreement).  The shares of Common Stock issuable upon
conversion of the Purchased Shares have been duly reserved for issuance upon
conversion of the Purchased Shares and, when issued in compliance with the
provisions of the Certificate of Incorporation, will be validly issued, fully
paid and non-assessable and not subject to any preemptive rights or similar
rights that have not been satisfied or waived and will be free and clear of all
other Liens (other than those imposed by the Stockholders Agreement).  All of the issued and outstanding shares of
Common Stock 

 

13

 

and Preferred Stock are all duly authorized, validly issued, fully paid
and non-assessable, and were issued in compliance with the registration and
qualification requirements of all applicable federal, state and foreign
securities laws.

 

(b)                                 Schedule 3.7(b)
sets forth, as of the Closing Date, a true and complete list of each of the
Subsidiaries of the Company and the names and ownership percentages of the
stockholders, members and partners of each such Subsidiary.  Except as set forth on Schedule 3.7(b),
the Company owns all of the issued and outstanding capital stock of the
Subsidiaries, free and clear of all Liens. 
All of such shares of capital stock are duly authorized, validly issued,
fully paid and non-assessable, and were issued in compliance with the
registration and qualification requirements of all applicable federal, state
and foreign securities laws.  Except as
set forth on Schedule 3.7(a) and 
Schedule 3.7(b), there are no options, warrants, conversion
privileges, subscription or purchase rights or other rights presently outstanding
to purchase or otherwise acquire any authorized but unissued, unauthorized or
treasury shares of capital stock or other securities of, or any proprietary
interest in, any of the Subsidiaries, and there is no outstanding security of
any kind convertible into or exchangeable for such shares or proprietary
interest.  Except as set forth on Schedule 3.7(b),
neither the Company nor any of its Subsidiaries, owns any interest, or has a
right to acquire any interest, in any Person that is not a Subsidiary.

 

(c)                                  The
Purchased Shares to be purchased by the Purchasers hereunder represent, in
the aggregate, on the Closing Date, not less than 21.25% of the outstanding
shares of Common Stock on a fully diluted basis assuming the Stock Option Plan
had been adopted as of such date, the grant of all options that may be granted
under the Stock Option Plan and the exercise thereof and the conversion,
exercise or exchange of any outstanding securities into shares of Common Stock,
including, without limitation, all of the Purchased Shares.

 

3.8                                 No
Default or Breach; Contractual Obligations. Schedule 3.8(a)
lists all of the Contractual Obligations, other than software license
agreements, professional service agreements and employment agreements, to which
the Company or any of its Subsidiaries is a party, whether written or oral,
(i) which involve an amount in excess of $50,000 or (ii) which are
otherwise material to the Condition of the Company; Schedule 3.8(b)
lists (x) all of the software license agreements to which the Company or any of
its Subsidiaries is a party which resulted in aggregate payments of $1,000,000
during the period commencing on January 31, 2001 and ending on January 31,
2003 and (y) all of the professional service agreements to which the Company or
any of its Subsidiaries is a party which resulted in aggregate payments of
$1,000,000 during the period commencing on January 1, 2001 and ending on December 31,
2002; and Schedule 3.8(c) lists all of the employment agreements to
which the Company or any of its Subsidiaries is a party (each of the agreements
listed on any such schedule, a “Material Contractual Obligation”). The
Company has not received notice of a default and is not in default under, or
with respect to, any Material Contractual Obligation, other than insubstantial
defaults, nor does any condition exist that with notice or lapse of time or
both would constitute a default thereunder. 
The Company has delivered or made available to the Purchasers a true,
complete and correct copy of each of the Credit 

 

14

 

Agreement and the Subordinated Promissory Note in effect on the date
hereof.  All of the Material Contractual
Obligations are valid, subsisting, in full force and effect and binding upon
the Company, and to the Company’s Knowledge, and the other parties thereto, and
the Company has paid in full or accrued all amounts due thereunder and has
satisfied in full or provided for all of its liabilities and obligations
thereunder.  To the Knowledge of the Company,
no other party to any such Material Contractual Obligation is in default
thereunder, nor does any condition exist that with notice or lapse of time or
both would constitute a default by such other party thereunder.

 

3.9                                 Title to
Properties.   The Company and its
Subsidiaries have good, record and marketable title in fee simple to, or holds
interests as lessee under leases in full force and effect in, all real property
used in connection with its business or otherwise owned or leased by it.

 

3.10                           Intentionally
Omitted.

 

3.11                           Financial
Statements.  The Company has
delivered to the Purchasers, the audited consolidated financial statements of
the Company and its Subsidiaries (balance sheet and statements of operations,
cash flow and stockholders’ equity, together with the notes thereto) for the
fiscal year ended July 31, 2002 which contains the unqualified report of
Grant Thornton LLP (the “Audited Financial Statements”) and the
unaudited consolidated financial statements of the Company and its Subsidiaries
(balance sheet and statements of operations) for the fiscal periods ended October 31, 2002 (the “Unaudited Financial
Statements” and, together with the Audited Financial Statements, the “Financial
Statements”).  The Financial
Statements are complete and correct in all material respects and have been
prepared in accordance with GAAP applied on a consistent basis throughout the
periods indicated, except that the Unaudited Financial Statements do not
contain footnotes, normal year-end adjustments. 
The Financial Statements fairly present the financial condition,
operating results and cash flows of the Company and its Subsidiaries as of the
respective dates and for the respective periods indicated in accordance with
GAAP, except that the Unaudited Financial Statements do not contain footnotes,
normal year-end adjustments.

 

3.12                           Taxes.  Except as set forth on Schedule 3.12,
(a) each of the Company and its Subsidiaries has paid all Taxes which have
come due and are required to be paid by it, and all deficiencies or other
additions to Tax, interest and penalties owed by it in connection with any such
Taxes, other than Taxes being disputed by the Company in good faith for which
adequate reserves have been made in accordance with GAAP; (b) each of the
Company and its Subsidiaries has timely filed or caused to be filed (or
obtained an extension for filing) all returns for Taxes that it is required to
file and all such Tax returns are accurate and complete; (c) with respect
to all Tax returns of the Company and its Subsidiaries, (i) to the
Knowledge of the Company, there is no unassessed Tax deficiency proposed or
threatened against the Company or its Subsidiaries and (ii) no audit is in
progress with respect to any return for Taxes, no extension of time is in force
with respect to any date on which any return for Taxes was or is to be filed
and no waiver or agreement is in force for the extension of time for the 

 

15

 

assessment or payment of any Tax; (d) all provisions for Tax
liabilities of the Company and its Subsidiaries, with respect to the Financial
Statements have been made in accordance with GAAP consistently applied, and all
liabilities for Taxes of the Company and its Subsidiaries, attributable to
periods prior to or ending on the Closing Date have been adequately provided
for on the Financial Statements; and (e) there are no Liens for Taxes on the
assets of the Company and its Subsidiaries.

 

3.13                           No
Material Adverse Change; Ordinary Course of Business.  Except as set forth on Schedule 3.13,
since July 31, 2002, (a) there has not been any material adverse
change, nor is any such change reasonably expected, in the Condition of the
Company, (b) the Company and its Subsidiaries have not participated in any
transaction material to the Condition of the Company, except in the ordinary
course of business consistent with past practice and not otherwise disclosed in
the other representations and warranties of the Company contained in this Article III,
or otherwise acted outside the ordinary course of business, including, without
limitation, declaring or paying any dividend or declaring or making any
distribution to its stockholders except out of the earnings of the Company and
such Subsidiaries, (c) the Company and its Subsidiaries have not increased
the compensation of any of its officers or the rate of pay of any of its
employees, except as part of regular compensation increases in the ordinary
course of business, (d) the Company and its Subsidiaries have not created or
assumed any Lien on a material asset of the Company and such Subsidiaries, (e)
the Company and its Subsidiaries have not entered into any Contractual
Obligation, other than in the ordinary course of business and (f) there has not
occurred a material change in the accounting principles or practice of the
Company or any of its Subsidiaries, except as required by reason of a change in
GAAP.

 

3.14                           Investment
Company.  The Company is not and is
not controlled by or affiliated with an “investment company” within the meaning
of the Investment Company Act of 1940, as amended.

 

3.15                           Private
Offering.  No form of general
solicitation or general advertising (as such terms are defined under Regulation
D of the Securities Act) was used by the Company or its representatives in connection
with the offer or sale of the Purchased Shares. 
Assuming the accuracy of the representations and warranties of the
Purchasers set forth in Section 4.1 hereof, no registration of the
Purchased Shares, pursuant to the provisions of the Securities Act or any state
securities or “blue sky” laws, will be required by the offer, sale or issuance
of the Purchased Shares.  The Company
agrees that neither it, nor anyone acting on its behalf, shall offer to sell
the Purchased Shares or any other securities of the Company so as to require
the registration of the Purchased Shares pursuant to the provisions of the
Securities Act or any state securities or “blue sky” laws, unless such
Purchased Shares or other securities are so registered.

 

3.16                           Labor
Relations.  (a)  Each of the
Company and its Subsidiaries is not engaged in any unfair labor practice;
(b) there is (i) no grievance or arbitration proceeding arising out
of or under collective bargaining agreements pending or, to the Knowledge of
the Company, threatened against the Company or its Subsidiaries, and 

 

16

 

(ii) no strike, labor dispute, slowdown or stoppage pending or, to
the Knowledge of the Company, threatened against the Company or its
Subsidiaries; (c) each of the Company and its Subsidiaries is not a party
to any collective bargaining agreement or contract; (d) there is no union
representation question existing with respect to the employees of the Company
or its Subsidiaries; and (e) no union organizing activities are taking
place.  To the Knowledge of the Company,
no officer or key employee, or any group of key employees, has informed the
Company in writing or, to the Knowledge of the Company, has informed the Company
orally, that he, she or they intend(s) to terminate his, her or their
employment with the Company or its Subsidiaries.  The Company and its Subsidiaries have not
discussed or taken any steps to terminate the employment of any officer, key
employee or group of key employees.  To
the Knowledge of the Company, each of the officers of the Company and its
Subsidiaries and each of the key employees set forth on Schedule 3.16
spends all, or substantially all, of his business time on the business of the
Company and/or its Subsidiaries, as the case may be.  None of the Company’s employees is resident
in the United States in violation of any Requirement of Law.

 

3.17                           Employee
Benefit Plans.  (a)  Schedule 3.17 hereto lists each
Plan that the Company currently maintains or to which the Company contributes
(the “Company  Plans”).  The
Company and its Subsidiaries have no liability under any Plans other than the
Company Plans.  Except as set forth on Schedule 3.17,
neither the Company nor its Subsidiaries, nor any Commonly Controlled Entity
maintains or contributes to, or has within the preceding six years maintained
or contributed to, or may have any liability with respect to any Plan subject
to Title IV of ERISA or Section 412 of the Code or any “multiple employer
plan” within the meaning of the Code or ERISA. 
Except as set forth on Schedule 3.17, each Company Plan (and
related trust, insurance contract or fund) has been established and
administered in accordance with its terms, and complies in form and in
operation with the applicable requirements of ERISA and the Code and other
applicable Requirements of Law.  All
contributions (including all employer contributions and employee salary
reduction contributions) which are due have been paid to each Company Plan in accordance
with applicable Requirements of Law.

 

(b)                                 No
Claim with respect to the administration or the investment of the assets of any
Company Plan (other than routine claims for benefits) is pending.

 

(c)                                  Each
Company Plan that is intended to be qualified under Section 401(a) of the
Code is so qualified and has been so qualified during the period since its
adoption; each trust created under any such Plan is exempt from tax under Section 501(a)
of the Code and has been so exempt since its creation.

 

(d)                                 No
Company Plan is a Retiree Welfare Plan.

 

(e)                                  Neither
the consummation of the transactions contemplated by this Agreement nor any
termination of employment following such transactions will accelerate the time
of the payment or vesting of, or increase the amount of, compensation 

 

17

 

due to any employee or former employee whether or not such payment
would constitute an “excess parachute payment” under section 280G of the
Code.

 

(f)                                    There
are no unfunded obligations under any Company Plan which are not fully
reflected on the Financial Statements.

 

(g)                                 The
Company has no liability, whether absolute or contingent, including any
obligations under any Company Plan, with respect to any misclassification of
any person as an independent contractor rather than as an employee.

 

3.18                           Title
to Assets.  Each of the Company and
its Subsidiaries owns and has good, valid, and marketable title to all of its
properties and assets used in its business and reflected as owned on the
Financial Statements or so described in any Schedule hereto other than
properties or assets disposed of in the ordinary course of business since the
date of such Financial Statements (collectively, the “Assets”), in each
case free and clear of all Liens, except for Liens (i) specifically described
on the notes to the Financial Statements, (ii) for current taxes not yet due or
(iii) as set forth on Schedule 3.18 hereto.

 

3.19                           Liabilities.  Each of the Company and its Subsidiaries does
not have any direct or indirect obligation or liability (the “Liabilities”)
other than (a) Liabilities fully and adequately reflected or reserved
against on the Financial Statements, (b) Liabilities incurred in the
ordinary course of business subsequent to July 31, 2002, (c) Liabilities
disclosed on Schedule 3.19 hereto, (d) Liabilities under this
Agreement (e) contractual Liabilities incurred in the ordinary course of
business and (f) contracutal Liabilities arising out of performance obligations
under any contracts listed on Schedule 3.8(a), Schedule 3.8(b) and Schedule 3.8(c),
to the extent they are not required by GAAP to be reflected on a balance
sheet.  The Company has no Knowledge of
any circumstance, condition, event or arrangement that could reasonably be
expected to give rise hereafter to any Liabilities of the Company except in the
ordinary course of business.

 

3.20                           Intellectual
Property.

 

(a)                                  (i)                                     Each
of the Company and its Subsidiaries is the owner of all, or has the license or
right to use, sell and license all of, the Copyrights, Patents, Trade Secrets,
Trademarks, Internet Assets, Software and other proprietary rights
(collectively, “Intellectual Property”) that are used in connection with
its business as presently conducted or that are being developed, as
contemplated in its business plan, free and clear of all Liens, except for
Liens specifically described in the notes to the Financial Statements or as set
forth on Schedule 3.20(a)(i).

 

(ii)                                  Schedule 3.20(a)(ii)
sets forth all of the filings and applications for any Intellectual Property
filed by the Company or its Subsidiaries, and all material Intellectual
Property owned by the Company or its Subsidiaries for which no filings or
applications have been filed.  None of
the Intellectual Property listed on Schedule 3.20(a)(ii) is subject
to any outstanding Order, and no Claims are pending or, to 

 

18

 

the Knowledge of the Company, have been threatened, which challenge the
validity, enforceability, use or ownership of the item.

 

(iii)                               Schedule 3.20(a)(iii)
sets forth all Intellectual Property licenses, sublicenses, distributor
agreements and other agreements under which the Company or its Subsidiaries is
either a licensor, licensee or distributor, except for (i) customer or end-user
agreements and (ii) such licenses, sublicenses and other agreements relating to
off-the-shelf software, which is commercially available on a retail basis and
used solely for the internal business purposes of the Company or its
Subsidiaries.  Each of the Company and
its Subsidiaries have substantially performed all obligations imposed upon it
thereunder, and is not, nor to the Knowledge of the Company is any other party
thereto, in breach of or default thereunder in any material respect, nor, to
the Knowledge of the Company, is there any event which with notice or lapse of
time or both would constitute a material default thereunder.  To the Knowledge of the Company, all of the
Intellectual Property licenses listed on Schedule 3.20(a)(iii) are
valid, enforceable and in full force and effect, and will continue to be so on
identical terms immediately following the Closing except as may be limited by
applicable bankruptcy, insolvency, reorganization, fraudulent conveyance or
transfer, moratorium or similar laws affecting the enforcement of creditors’
rights generally and by general principles of equity relating to enforceability
(regardless of whether considered in a proceeding at law or in equity).

 

(iv)                              Other
than as set forth on Schedule 3.20(a)(iv), none of the Intellectual
Property owned by the Company or its Subsidiaries, and to the Knowledge of the
Company, none of the Intellectual Property currently sold or licensed to the
Company or its Subsidiaries, infringes upon or otherwise violates any
Intellectual Property rights of others except that this representation is made
to the Knowledge of the Company with respect to Trademarks owned by the Company
and its Subsidiaries.

 

(v)                                 Except
as set forth on Schedule 3.20(a)(v), to the knowledge of any
Company employee no Claim is pending or, to the Knowledge of the Company, has
been threatened against the Company or its Subsidiaries, contesting the right
of the Company or its Subsidiaries to sell, license or use any Intellectual
Property.

 

(b)                                 Except
as set forth on Schedule 3.20(b), to the Knowledge of the Company,
no Person is infringing upon or otherwise violating the Intellectual Property
rights of the Company or its Subsidiaries.

 

(c)                                  To
the Knowledge of the Company, no former employer of any employee of the Company
or its Subsidiaries, and no current or former client of any consultant of the
Company or its Subsidiaries, has made a claim in writing, or to the Knowledge
of the Company, has made a claim orally, against the Company or its
Subsidiaries that such employee or such consultant is violating the
Intellectual Property rights of such former employer or client.

 

(d)                                 Except
as set forth on Schedule 3.20(d), neither the Company nor any of
its Subsidiaries is a party to or bound by any written or, to the Knowledge of
the Company, oral license or other agreement requiring the payment by the 

 

19

 

Company or its Subsidiaries of any royalty payment, excluding such
agreements relating to software licensed for use solely for the internal
business purposes of the Company or its Subsidiaries.

 

(e)                                  To
the Knowledge of the Company, no employee of the Company or its Subsidiaries is
in violation of any employment agreement, patent or invention disclosure
agreement or other contract or agreement relating to the relationship of such
employee with the Company or its Subsidiaries or any prior employer.

 

(f)                                    To
the Knowledge of the Company, none of the Trade Secrets, the value of which is
contingent upon maintenance of confidentiality thereof, has been disclosed to
any Person in a manner that is reasonably likely to result in the loss of
protection of such Trade Secrets.

 

(g)                                 It
is not necessary for the business of the Company or its Subsidiaries to use any
Intellectual Property owned by any director, officer, employee or consultant of
the Company or its Subsidiaries (or persons the Company presently intends to
hire).  To the Company’s Knowledge, at no
time during the conception or reduction to practice of any of the Intellectual
Property of the Company or its Subsidiaries was any developer, inventor or
other contributor to such Intellectual Property operating under any grants from
any Governmental Authority or subject to any employment agreement, invention
assignment, nondisclosure agreement or other Contractual Obligation with any
Person that could reasonably be expected to adversely affect the Company’s or
such Subsidiaries’ rights to its Intellectual Property.

 

(h)                                 All
present employees and consultants of the Company and its Subsidiaries have
executed and delivered proprietary invention or similar agreements with the
Company or its Subsidiaries, the terms of which require such employees and
consultants to assign all inventions made by them during the course of
employment to the Company or its Subsidiaries or otherwise provide that the
Company or its Subsidiaries shall be the owner of such inventions made prior to
his employment with or work for the Company or its Subsidiaries from his
assignment of inventions pursuant to such proprietary invention agreements.

 

3.21                           Network
Redundancy and Computer Back-up. 
Except as set forth on Schedule 3.21 and as could not
reasonably be expected to have a material adverse effect on the ability of the
Company to use its services network or meet its material obligations to its
customers, (a) the server hardware and supporting equipment (including
communications equipment, terminals and hook-ups that interface with third
party computer systems) used in the services network of the Company or its
Subsidiaries provide redundancy and meet industry standards relating to
availability; and (b) each of the Company and its Subsidiaries has made
back-ups of all material computer Software and databases utilized by it and
maintain such Software and databases at a secure off-site location.

 

3.22                           Privacy
of Customer Information.  To the
Knowledge of the Company, each of the Company and its Subsidiaries does not use
any of the customer 

 

20

 

information it receives through its website, if any, or otherwise in an
unlawful manner, or in a manner violative of the Company’s privacy policy or
the privacy rights of its customers under all Requirements of Law.

 

3.23                           Potential
Conflicts of Interest; Affiliate Transaction.  Except as set forth on Schedule 3.23,
no officer or director of the Company or its Subsidiaries, no spouse of any
such officer or director, and, to the Knowledge of the Company, no relative of
such spouse or of any such officer or director (a) owns, directly or
indirectly, any interest in (excepting (i) less than one percent (1%) stock
holdings for investment purposes in securities of publicly held and traded
companies and (ii) any Cerberus Affiliate, with respect to any director of the
Company who is an employee of Cerberus or any of its Affiliates), or is an
officer, director, employee or consultant of, any Person which is, or is
engaged in business as, a Competitor, lessor, lessee, supplier, distributor,
sales agent or customer of, or lender to or borrower from, the Company or its
Subsidiaries; (b) owns, directly or indirectly, in whole or in part, any
tangible or intangible property that the Company or its Subsidiaries has used,
or that the Company or its Subsidiaries will use, in the conduct of business;
or (c) has any cause of action or other claim whatsoever against, or owes
or has advanced any amount to, the Company or its Subsidiaries, except for
claims in the ordinary course of business such as for accrued vacation pay,
accrued benefits under employee benefit plans, and similar matters and agreements
existing on the date hereof.  Schedule 3.23
sets forth a list and a description of all Contractual Obligations to which the
Company or one of its Subsidiaries, on the one hand, and any Affiliate of the
Company, on the other hand, is a party. 
True, complete and correct copies of all such Contractual Obligations
have been delivered or made available to the Purchasers.

 

3.24                           Trade
Relations.  There exists no actual
or, to the Knowledge of the Company, threatened termination, cancellation or
limitation of, or any adverse modification or change in, the business
relationship of the Company or its Subsidiaries, or the Condition of the
Company or its Subsidiaries, with any customer or supplier or any group of
customers or suppliers whose purchases or inventories provided to the business
of the Company or its Subsidiaries are individually or in the aggregate
material to the Condition of the Company or its Subsidiaries where the loss of
such customer or supplier or group of customers or suppliers would have a material
adverse effect on the Condition of the Company, and to the Knowledge of the
Company, there exists no present condition or state of fact or circumstances
that would materially adversely affect the Condition of the Company or prevent
the Company or its Subsidiaries from conducting such business relationships or
such business with any such customer, supplier or group of customers or
suppliers in substantially the same manner as heretofore conducted by the
Company or its Subsidiaries.

 

3.25                           Outstanding
Borrowing.  Schedule 3.25
sets forth the amount of all Indebtedness of the Company and its Subsidiaries
other than trade liabilities arising in the ordinary course of business as of
the date hereof (including all amounts outstanding under the Credit Agreement
and the Subordinated Promissory Note), the Liens that relate to such
Indebtedness and that encumber the Assets and the name of each lender
thereof.  

 

21

 

No Indebtedness is entitled to any voting rights in any matters voted
upon the holders of the capital stock of the Company.

 

3.26                           Insurance.  Schedule 3.26 lists all of the
insurance policies held by or on behalf of the Company and its Subsidiaries,
with the effective date and coverage amounts indicated thereon.  To the Knowledge of the Company, such
policies are valid and enforceable in accordance with their terms and are in
full force and effect and cover all risks associated with the business of the
Company or any of its Subsidiaries that are customarily insured against in the
industry in such amounts as are customary in the industry.  None of such policies will be affected by, or
terminate or lapse by reason of, any transaction contemplated by this Agreement
or any of the other Transaction Documents.

 

3.27                           [Intentionally
Omitted.]

 

3.28                           Broker’s,
Finder’s or Similar Fees.  There are
no brokerage commissions, finder’s fees or similar fees or commissions payable
by the Company or any of its Subsidiaries in connection with the transactions
contemplated hereby based on any agreement, arrangement or understanding with
the Company or any of its Subsidiaries or any action taken by any such Person
by or on behalf of the Company.

 

3.29                           Disclosure.

 

(a)                                  Agreement
and Other Documents.  This Agreement
and the documents and certificates (excluding therefrom any financial
projections and forward looking statements) furnished to the Purchasers by the
Company do not contain any untrue statement of a material fact or omit to state
a material fact necessary in order to make the statements contained herein or
therein, in the light of the circumstances under which they were made, not
misleading.

 

(b)                                 Material
Adverse Effects.  To the Company’s
Knowledge, there is no fact that the Company has not disclosed to the
Purchasers in writing which materially adversely affects, or insofar as the
Company can reasonably foresee could materially adversely affect, the Condition
of the Company or the ability of the Company to perform its obligations under
this Agreement, any of the other Transaction Documents or any document
contemplated hereby or thereby.

 

3.30                           Acquisition
Documents.  The copies of the
Acquisition Documents provided by the Company to the Purchasers (a) are
true, complete and correct copies thereof, (b) have been executed in the
exact form as provided, (c) have not been and will not be amended or
modified and (d) are in full force and effect and will be in full force
and effect as of the Closing Date. 
Except as set forth on Schedule 3.30, each of the representations
and warranties made in the Infinium Merger Agreement by the Company and, to the
Knowledge of the Company, by the other parties thereto, are true and correct in
all material respects.

 

22

 

ARTICLE IV

 

REPRESENTATIONS AND
WARRANTIES OF THE OTHER PARTIES

 

4.1                                 Representations and Warranties
of Purchasers.  Each of
the Purchasers hereby represents and warrants, severally and not jointly to the
Company as follows:

 

(a)                                  Existence
and Power.  Such Purchaser (a)
is a limited partnership or limited liability company, duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
formation and (b) has the requisite partnership or limited liability
company, as the case may be, power and authority to execute, deliver and
perform its obligations under this Agreement and each of the other Transaction
Documents to which it is a party.

 

(b)                                 Authorization;
No Contravention.  The execution,
delivery and performance by such Purchaser of this Agreement and each of the
other Transaction Documents to which it is a party and the transactions
contemplated hereby and thereby, (a) have been duly authorized by all
necessary partnership or limited liability company, as the case may be, action,
(b) do not contravene the terms of such Purchaser’s organizational
documents, or any amendment thereof, and (c) do not violate, conflict with
or result in any breach, default or contravention of (or with due notice or
lapse of time or both would not result in any breach, default or contravention
of), or the creation of any Lien under, any Contractual Obligation of such
Purchaser or any Requirement of Law applicable to such Purchaser, (except for
the Lien created on the Purchased Shares purchased by GapStar to secure its
obligations under a bona fide loan made to acquire such Purchased Shares) and
(d) do not violate any Orders of any Governmental Authority against, or binding
upon, such Purchaser.

 

(c)                                  Governmental
Authorization; Third Party Consents. 
No approval, consent, compliance, exemption, authorization or other
action by, or notice to, or filing with, any Governmental Authority or any
other Person, and no lapse of a waiting period under any Requirement of Law, is
necessary or required in connection with the execution, delivery or performance
(including, without limitation, the purchase of the Purchased Shares) by, or
enforcement against, such Purchaser of this Agreement and each of the other
Transaction Documents to which it is a party or the  transactions contemplated hereby and thereby,
except as required by the HSR Act.

 

(d)                                 Binding
Effect.  This Agreement has been, and
as of the Closing Date each of the other Transaction Documents to which it is a
party will have been, duly executed and delivered by such Purchaser and this Agreement
constitutes, and as of the Closing Date each of the other Transaction Documents
will constitute, the legal, valid and binding obligations of such Purchaser,
enforceable against it in accordance with its terms, except as enforceability
may be limited by applicable bankruptcy, insolvency, reorganization, fraudulent
conveyance or transfer, moratorium or similar laws affecting the enforcement of
creditors’ rights generally or by equitable principles relating to
enforceability (regardless of whether considered in a proceeding at law or in
equity).

 

23

 

(e)                                  Purchase
for Own Account.  The Purchased
Shares to be acquired by such Purchaser pursuant to this Agreement are being or
will be acquired for its own account and with no intention of distributing or
reselling such Purchased Shares or any part thereof in any transaction that
would be in violation of the securities laws of the United States of America,
any state of the United States or any foreign jurisdiction, without prejudice,
however, to the rights of such Purchaser at all times to sell or otherwise
dispose of all or any part of such Purchased Shares in a transaction that does
not violate the Securities Act under an effective registration statement under
the Securities Act, or under an exemption from such registration available
under the Securities Act, and subject, nevertheless, to the disposition of such
Purchaser’s property being at all times within its control.  If such Purchaser should in the future decide
to dispose of any of such Purchased Shares, such Purchaser understands and
agrees that it may do so only in compliance with the Stockholders Agreement and
the Securities Act and applicable state and foreign securities laws, as then in
effect.  Such Purchaser agrees to the
imprinting, so long as required by law, of a legend on certificates
representing all of its Purchased Shares and shares of Common Stock issuable
upon conversion of its Purchased Shares to the following effect:

 

THE SECURITIES REPRESENTED
BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY STATE OF THE
UNITED STATES OR ANY FOREIGN JURISDICTION. 
THE SECURITIES MAY NOT BE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE AND FOREIGN
SECURITIES LAWS OR PURSUANT TO AN APPLICABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF SUCH ACT AND SUCH LAWS.

 

THE SALE, ASSIGNMENT,
HYPOTHECATION, PLEDGE, ENCUMBRANCE OR OTHER DISPOSITION (EACH A “TRANSFER”)
AND VOTING OF ANY OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE
RESTRICTED BY THE TERMS OF THE STOCKHOLDERS AGREEMENT, DATED                      ,
2003, AMONG THE COMPANY AND THE STOCKHOLDERS NAMED THEREIN, A COPY OF WHICH MAY
BE INSPECTED AT THE COMPANY’S PRINCIPAL OFFICE. 
THE COMPANY WILL NOT REGISTER THE TRANSFER OF SUCH SECURITIES ON THE
BOOKS OF THE COMPANY UNLESS AND UNTIL THE TRANSFER HAS BEEN MADE IN COMPLIANCE
WITH THE TERMS OF THE STOCKHOLDERS AGREEMENT.

 

(f)                                    Restricted
Securities.  Such Purchaser
understands that (i) the Purchased Shares will not be registered at the time of
their issuance under the Securities Act for the reason that the sale provided
for in this Agreement is exempt pursuant to Section 4(2) of the Securities
Act, (ii) the reliance of the Company on such exemption is predicated in part
on such Purchaser’s representations set forth herein, and (iii) such Purchased
Shares must be held indefinitely unless a subsequent disposition thereof is
registered under the Securities Act or is exempt from registration.

 

24

 

(g)                                 Broker’s,
Finder’s or Similar Fees.  There are
no brokerage commissions, finder’s fees or similar fees or commissions payable
by such Purchaser in connection with the transactions contemplated hereby based
on any agreement, arrangement or understanding with such Purchaser or any
action taken by such Purchaser.

 

(h)                                 Accredited
Investor. Such Purchaser is an “Accredited Investor” within the meaning of
Rule 501 of Regulation D under the Securities Act, as presently in effect.  Such Purchaser acknowledges that such
Purchaser has had a full opportunity to request from the Company and to review
and has received all information which it deems relevant in making a decision
to purchase the Purchased Shares being purchased by it hereunder and is relying
on its own due diligence and the representations and warranties and covenants
of the Company made herein in making this investment and not on any
representations or warranties or covenants of Cerberus, except those set forth
in Section 4.2 and Section 8.10 of this Agreement; provided
however, that notwithstanding anything to the contrary set forth in this
Agreement, no review of any information by such Purchaser and no due diligence
investigation of the Company or its Subsidiaries by such Purchaser shall
relieve or mitigate any breach by the Company of its representations,
warranties or covenants contained in any of the Transaction Documents.

 

4.2                                 Representations and Warranties
of Cerberus.  Cerberus
hereby represents and warrants to each of the Purchasers as follows:

 

(a)                                  Existence
and Power.  Cerberus (a) is a
limited partnership, duly organized, validly existing and in good standing
under the laws of the jurisdiction of its formation and (b) has the
requisite partnership power and authority to execute, deliver and perform its
obligations under this Agreement and each of the other Transaction Documents to
which it is a party.

 

(b)                                 Authorization;
No Contravention.  The execution,
delivery and performance by Cerberus of this Agreement and each of the other
Transaction Documents to which it is a party and the transactions contemplated
hereby and thereby, (a) have been duly authorized by all necessary
partnership action, (b) do not contravene the terms of Cerberus’
organizational documents, or any amendment thereof, and (c) do not
violate, conflict with or result in any breach, default or contravention of (or
with due notice or lapse of time or both would not result in any breach,
default or contravention of), or the creation of any Lien under, any
Contractual Obligation of Cerberus or any Requirement of Law applicable to
Cerberus and (d) do not violate any Orders of any Governmental Authority against,
or binding upon, Cerberus.

 

(c)                                  Governmental
Authorization; Third Party Consents. 
No approval, consent, compliance, exemption, authorization or other
action by, or notice to, or filing with, any Governmental Authority or any
other Person, and no lapse of a waiting period under any Requirement of Law, is
necessary or required in connection with the execution, delivery or performance
(including, without limitation, the purchase of the Purchased Shares) by, or
enforcement against, Cerberus of this Agreement and each of the other
Transaction Documents to which it is a party or the transactions contemplated
hereby and thereby, except as required by the HSR Act.

 

25

 

(d)                                 Binding
Effect.  This Agreement has been, and
as of the Closing Date each of the other Transaction Documents to which it is a
party will have been, duly executed and delivered by Cerberus and this
Agreement constitutes, and as of the Closing Date each of the other Transaction
Documents to which it is a party will constitute, the legal, valid and binding
obligations of Cerberus, enforceable against it in accordance with its terms,
except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, fraudulent conveyance or transfer, moratorium or similar laws
affecting the enforcement of creditors’ rights generally or by equitable
principles relating to enforceability (regardless of whether considered in a
proceeding at law or in equity).

 

ARTICLE V

 

CONDITIONS TO THE OBLIGATION

OF THE PURCHASERS TO CLOSE

 

The obligation of the
Purchasers to purchase the Purchased Shares, to pay the purchase price therefor
at the Closing and to perform any obligations hereunder shall be subject to the
satisfaction as determined by, or waiver by, the Purchasers of the following
conditions on or before the Closing Date.

 

5.1                                 Representation and Warranties.  The representations and warranties of the
Company contained in Article III hereof shall be true and correct as of
the Closing Date as if made on and as of such date (other than representations
and warranties which address matters only as of a certain date which shall be
true and correct as of such certain date and except as contemplated or
permitted by this Agreement), such that the aggregate effect of any
inaccuracies in such representations and warranties will not have a material
adverse effect on the Condition of the Company or the ability of the Company to
duly perform its obligations under this Agreement or to consummate the
transactions contemplated hereby, without regard (solely for purposes of this Section 5.1)
to any materiality or “material adverse effect” qualifications contained in
such representations and warranties.

 

5.2                                 Compliance with this Agreement.  The Company shall have performed and complied
in all material respects with all of its agreements set forth herein that are
required to be performed by the Company on or before the Closing Date.

 

5.3                                 Officer’s Certificate.  The Purchasers shall have received a
certificate from the Company, in form and substance reasonably satisfactory to
the Purchaser, dated the Closing Date, and signed by the Chief Executive
Officer and Chief Financial Officer of the Company, certifying as to the
matters set forth in Sections 5.1 and 5.2.

 

5.4                                 Secretary’s Certificate.  The Purchasers shall have received a
certificate from the Company, in form and substance reasonably satisfactory to
the Purchasers, dated the Closing Date and signed by the Secretary or an
Assistant Secretary of the Company, certifying (a) that the Company is in good
standing with the Secretary of 

 

26

 

State of the State of Delaware, (b) that the attached copies of
the Certificate of Incorporation, the By-laws, and the resolutions of the Board
of Directors and resolutions of the stockholders of the Company approving this
Agreement and each of the other Transaction Documents, are all true, complete
and correct and remain unamended and in full force and effect, (c) that the
attached copies of the resolutions of the stockholders of the Company electing
the General Atlantic Directors (as defined in the Stockholders Agreement) are
true, complete and correct and remain unamended and in full force and effect,
(d) that the Acquisition Documents are true, complete and correct and that the
Company has not granted any waivers thereunder without the Purchasers’ prior
written consent (such consent not to be unreasonably withheld), and (e) as
to the incumbency and specimen signature of each officer of the Company
executing this Agreement, each other Transaction Document and any other
document delivered in connection herewith on behalf of the Company.

 

5.5                                 Filing of Certificate of
Incorporation.  The
Certificate of Incorporation shall have been duly filed by the Company with the
Secretary of State of the State of Delaware in accordance with the General
Corporation Law of the State of Delaware, and the Purchasers shall have
received evidence of such filing in form and substance reasonably satisfactory
to the Purchasers.

 

5.6                                 Purchased
Shares.  The Company shall have
delivered to each of the Purchasers, against receipt of the purchase price for
the Purchased Shares, certificates in definitive form representing the number
of Purchased Shares set forth opposite such Purchaser’s name on Schedule 2.1
hereto, registered in the name of such Purchaser.

 

5.7                                 Stockholders
Agreement.  The Company and the
Cerberus Stockholders (as defined therein) shall have duly executed and
delivered the Stockholders Agreement.

 

5.8                                 Registration
Rights Agreement.  The Company and
the Major Stockholders (as defined therein) shall have duly executed and
delivered the Registration Rights Agreement.

 

5.9                                 Opinion of Counsel.  The Purchasers shall have received an opinion
of Schulte Roth & Zabel LLP, dated the Closing Date, relating to the
transactions contemplated by or referred to herein, substantially in the form
attached hereto as Exhibit G.

 

5.10                           No Material Adverse Change.  Since the date hereof, there shall have been
no material adverse change in the Condition of the Company taken as a whole.

 

5.11                           Consents and Approvals.  All consents, exemptions, authorizations, or
other actions by, or notice to, or filings with, Governmental Authorities and
other Persons in respect of all Requirements of Law and with respect to those
Contractual Obligations of the Company which are necessary or required in
connection with the execution, delivery or performance by, or enforcement
against, the Company of this Agreement and each of the other Transaction Documents
shall have been obtained 

 

27

 

and be in full force and effect, and the Purchasers shall have been
furnished with appropriate evidence thereof and all applicable waiting periods
shall have expired without any action being taken or threatened which would
have a material adverse effect on the Condition of the Company.

 

5.12                           No Material Judgment or Order.  There shall not be on the Closing Date any
Order of a court of competent jurisdiction or any ruling of any Governmental
Authority or any condition imposed under any Requirement of Law which would, in
the reasonable judgment of the Purchasers, (a) prohibit or restrict
(i) the purchase of the Purchased Shares or (ii) the consummation of the
transactions contemplated by this Agreement, (b) subject the Purchasers to any
material penalty or onerous condition under or pursuant to any Requirement of
Law if the Purchased Shares were to be purchased hereunder or (c) restrict the
operation of the business of the Company as conducted on the date hereof in a
manner that would have a material adverse effect on the Condition of the
Company taken as a whole.

 

5.13                           No Litigation.  No action, suit, proceeding, claim or dispute
shall have been brought or otherwise arisen at law, in equity, in arbitration
or before any Governmental Authority against the Company which would, if
adversely determined 

(a) have a material adverse effect on the Condition of the Company taken as a
whole or (b) have a material adverse effect on the ability of the Company
to perform its obligations under this Agreement or each of the other
Transaction Documents.

 

5.14                           Good Standing Certificates.  The Company shall have delivered to the
Purchasers as of the Closing Date, a good standing certificate for the Company
and each of its Subsidiaries that is organized in the United States, in each
case, issued by the appropriate authority in its jurisdiction of incorporation
or organization.

 

5.15                           HSR Act Filing.  Any Person required in connection with the
contemplated transactions to file a notification and report form in compliance
with the HSR Act shall have filed such form and the applicable waiting period
with respect to each such form (including any extension thereof by reason of a
request for additional information) shall have expired or been terminated.

 

5.16                           Prior Agreements.  All prior stockholders agreements, including
the Original Stockholders Agreement, shall have been terminated, in form and
substance reasonably satisfactory to the Purchasers.

 

5.17                           Rights Agreement.  The Rights Agreement shall have been
terminated, in form and substance reasonably satisfactory to the Purchasers,
and all of the Rights (as such term is defined in the Rights Agreement) issued
pursuant to the Rights Agreement shall have been terminated and canceled in
form and substance reasonably satisfactory to the Purchasers.

 

5.18                           Securities Exchange Agreement.  Prior to or simultaneously with the Closing,
the transactions contemplated by the Securities Exchange Agreement shall have
been consummated, including, without limitation, the cancellation by Madeleine of

 

28

 

$10 million of Indebtedness under the Subordinated Promissory Note in
exchange for the issuance of shares of Preferred Stock, in accordance with the
terms of the Securities Exchange Agreement.

 

5.19                           Subordinated Promissory Note.  Simultaneously with the Closing,  Madeleine shall have surrendered the
Subordinated Promissory Note in exchange for the payment of a $5.5 million extension
fee to Madeleine and the execution and delivery by the Company of the Amended
and Restated Subordinated Promissory Note with a maturity date of December 31,
2007 and an aggregate principal amount equal to the difference between (a) the
principal amount of the Subordinated Promissory Note outstanding immediately
prior to such exchange minus (b) the sum of (i) the exchange of $10,000,000 of
outstanding indebtedness under the Subordinated Promissory Note pursuant to the
Securities Exchange Agreement and (ii) the amount of the indebtedness under the
Subordinated Promissory Note that is repaid with a portion of the proceeds from
the sale of the Purchased Shares in accordance with Section 2.3 hereof,
and the Company shall have cancelled the Subordinated Promissory Note so
surrendered.

 

5.20                           Payoff
Letter.  The Company shall have
delivered to each of the Purchasers a payoff letter from the Agent under the
Credit Agreement (the “Payoff Letter”), such Payoff Letter to be
substantially in the form attached hereto as Exhibit H.

 

5.21                           Letter of Credit.  The Company shall have entered into an
agreement with Foothill Capital Corporation to cash collateralize the
outstanding letter of credit issued pursuant to the Credit Agreement.

 

5.22                           Opinion of General Counsel.  The Purchasers shall have received an opinion
of Kirk Isaacson, Senior Vice President and General Counsel of the Company,
dated the Closing Date, relating to the transactions contemplated by or
referred to herein, substantially in the form attached hereto as Exhibit I.

 

ARTICLE VI

 

CONDITIONS TO THE OBLIGATION

OF THE COMPANY TO CLOSE

 

The obligation of the
Company to issue and sell the Purchased Shares and the obligation of the
Company to perform its other obligations hereunder shall be subject to the
satisfaction as determined by, or waiver by, the Company of the following
conditions on or before the Closing Date:

 

6.1                                 Payment of Purchase Price.  Each Purchaser shall pay the aggregate
purchase price for the Purchased Shares to be purchased by such Purchaser.

 

6.2                                 Stockholders
Agreement.  Each Purchaser shall have
duly executed and delivered the Stockholders Agreement.

 

29

 

6.3                                 Registration
Rights Agreement.  Each Purchaser
shall have duly executed and delivered the Registration Rights Agreement.

 

6.4                                 HSR
Act Filing.  Any Person required in
connection with the contemplated transactions to file a notification and report
form in compliance with the HSR Act shall have filed such form and the
applicable waiting period with respect to each such form (including any
extension thereof by reason of a request for additional information) shall have
expired or been terminated.

 

6.5                                 Representations
and Warranties.  The representations
and warranties of the Purchasers contained in Article IV hereof shall be
true and correct as of the Closing Date as if made on and as of such date
(other than representations and warranties which address matters only as of a
certain date which shall be true and correct as of such certain date and except
as contemplated or permitted by this Agreement), such that the aggregate effect
of any inaccuracies in such representations and warranties will not have a
material adverse effect on the ability of the Purchasers to duly perform their
obligations under this Agreement or to consummate the transactions contemplated
hereby, without regard (solely for purposes of this Section 6.5) to any
materiality or “material adverse effect” qualifications contained in such
representations and warranties.

 

6.6                                 Compliance
with Agreement.  Each of the
Purchasers shall have performed and complied in all material respects with all
of their respective agreements set forth herein that are required to be
performed by the Purchasers on or before the Closing Date.

 

6.7                                 Certificate.  The Company shall have received a certificate
from the Purchasers, in form and substance reasonably satisfactory to the
Company, dated the Closing Date, and signed by an authorized Person of each of
the Purchasers, certifying as to the matters set forth in Sections 6.5 and
6.6.

 

6.8                                 Litigation.  No action, suit, proceeding, claim or dispute
shall have been brought or otherwise arisen at law, in equity, in arbitration
before any Governmental Authority, against any of the Purchasers which would,
if adversely determined, have a material adverse effect on the ability of such
Purchaser to perform its obligations under this Agreement or each of the other
Transaction Documents.

 

ARTICLE VII

 

INDEMNIFICATION

 

7.1                                 Indemnification.  Except as otherwise provided in this Article VII,
the Company (the “Indemnifying Party”) agrees to indemnify, defend and
hold harmless each of the Purchasers and its Affiliates and their respective
officers, directors, agents, employees, subsidiaries, partners, members and
each person who controls (within the meaning of Section 15 of the
Securities Act) such persons (each, an “Indemnified Party”) to the
fullest extent permitted by law from and against any and all losses or Claims
(including, without limitation, any Claim by a third party), damages, expenses
(including 

 

30

 

reasonable fees, disbursements and other charges of counsel incurred by
the Indemnified Party in any action or any written threat of a Claim between an
Indemnifying Party and the Indemnified Party or between the Indemnified Party
and any third party or otherwise) or other liabilities (collectively, “Losses”)
resulting from or arising out of any breach of any representation or warranty,
covenant or agreement by the Company in this Agreement or the other Transaction
Documents.  The amount of any payment to
any Indemnified Party herewith in respect of any Loss shall be of sufficient
amount to make such Indemnified Party whole for any diminution in value of the
Purchased Shares.

 

7.2                                 Notification.  Each Indemnified Party under this Article VII
shall, promptly after the receipt of notice of the commencement of any Claim or
threat thereof against such Indemnified Party in respect of which indemnity may
be sought from the Indemnifying Party under this Article VII, notify the
Indemnifying Party in writing of the commencement thereof.  The omission of any Indemnified Party to so
notify the Indemnifying Party of any such action shall not relieve the
Indemnifying Party from any liability which it may have to such Indemnified
Party (a) other than pursuant to this Article VII or (b) under
this Article VII unless, and only to the extent that, such omission
results in the Indemnifying Party’s forfeiture of substantive rights or
defenses.  In case any such Claim shall
be brought against any Indemnified Party, and the Indemnified Party notifies
the Indemnifying Party of the commencement thereof, the Indemnifying Party
shall be entitled to assume the defense thereof at its own expense, with counsel
satisfactory to such Indemnified Party in its reasonable judgment; provided,
however, that any Indemnified Party may, at its own expense, retain
separate counsel to participate in such defense at its own expense.  Notwithstanding the foregoing, in any Claim
in which both the Indemnifying Party, on the one hand, and an Indemnified
Party, on the other hand, are, or are reasonably likely to become, a party,
such Indemnified Party shall have the right to employ separate counsel and to
control its own defense of such Claim if, in the reasonable opinion of counsel
to such Indemnified Party, either (x) one or more defenses are available to the
Indemnified Party that are not available to the Indemnifying Party or (y) a
conflict or potential conflict exists between the Indemnifying Party, on the
one hand, and such Indemnified Party, on the other hand, that would make such
separate representation advisable; provided, however, that the
Indemnifying Party (i) shall not be liable for the fees and expenses of more
than one counsel to all Indemnified Parties and (ii) shall reimburse the
Indemnified Parties for all of such fees and expenses of such counsel incurred
in any action between the Indemnifying Party and the Indemnified Parties or
between the Indemnified Parties and any third party.  The Indemnifying Party agrees that it will
not, without the prior written consent of the Purchasers, settle, compromise or
consent to the entry of any judgment in any pending or threatened Claim relating
to the matters contemplated hereby (if any Indemnified Party is a party thereto
or has been actually threatened to be made a party thereto) unless such
settlement, compromise or consent includes an unconditional release of each
Indemnified Party from all liability arising or that may arise out of such
Claim.  The Indemnifying Party shall not
be liable for any settlement of any Claim effected against an Indemnified Party
without its written consent, which consent shall not be unreasonably withheld.  The rights accorded to an Indemnified Party
hereunder shall be in addition to any rights that any Indemnified Party may
have at common law, by separate agreement or otherwise; 

 

31

 

provided, however, that
notwithstanding the foregoing or anything to the contrary contained in this
Agreement, nothing in this Article VII shall restrict or limit any rights
that any Indemnified Party may have to seek equitable relief.

 

7.3                                 Contribution.  If the indemnification provided for in this Article VII
from the Indemnifying Party is unavailable to an Indemnified Party hereunder in
respect of any Losses referred to herein, then the Indemnifying Party, in lieu
of indemnifying such Indemnified Party, shall contribute to the amount paid or
payable by such Indemnified Party as a result of such Losses in such proportion
as is appropriate to reflect the relative fault of the Indemnifying Party and
Indemnified Party in connection with the actions which resulted in such Losses,
as well as any other relevant equitable considerations.  The relative faults of such Indemnifying
Party and Indemnified Party shall be determined by reference to, among other
things, whether any action in question, including any untrue or alleged untrue
statement of a material fact or omission or alleged omission to state a
material fact, has been made by, or relates to information supplied by, such
Indemnifying Party or Indemnified Party, and the parties relative intent,
knowledge, access to information and opportunity to correct or prevent such action.  The amount paid or payable by a party as a
result of the Losses referred to above shall be deemed to include, subject to
the limitations set forth in Sections 7.1 and 7.2, any legal or other
fees, charges or expenses reasonably incurred by such party in connection with
any investigation or proceeding.

 

7.4                                 Limitation
on Indemnification and Contribution. 
The Company shall have no liability for indemnification or contribution
under this Article VII until the aggregate Losses of the Indemnified
Parties hereunder exceed $1,000,000 (all amounts up to $1,000,000, the “Basket
Amount”).  If the Indemnified Parties’
Losses exceed the Basket Amount, then the Company shall be liable for all of
the Indemnified Parties’ Losses, including the Basket Amount; provided, however,
that in no event shall the aggregate liability of the Company hereunder exceed
$37,500,000 (the “Cap”).  Notwithstanding
the foregoing, however, neither the Basket Amount nor the Cap shall apply to
Indemnified Parties’ Losses to the extent that such Losses arise out of a
breach of representation or warranty where both the Company and Cerberus had
Knowledge of such breach as of the date of this Agreement and failed to
disclose to the Purchasers such breach in writing on the Schedules hereto.  The Company shall have no liability for
indemnification with respect to a breach of any representation or warranty
after the expiration of the applicable survival period set forth in Section 10.1.

 

ARTICLE VIII

 

AFFIRMATIVE COVENANTS

 

The Company hereby covenants
and agrees with the Purchasers as follows:

 

8.1                                 Preservation
of Existence.  From and after the
date hereof through and until the earlier of the Closing and the termination of
this Agreement pursuant to Article IX, the Company shall, and shall cause
each of its Subsidiaries to:

 

32

 

(a)                                  preserve
and maintain in full force and effect its existence and good standing under the
laws of its jurisdiction of formation or organization;

 

(b)                                 preserve
and maintain in full force and effect in the ordinary course of business and
consistent with past practice all material rights, privileges, qualifications,
applications, licenses and franchises necessary in the normal conduct of its
business in accordance with their terms, the loss of which would have a
material adverse effect on the Condition of the Company taken as a whole;

 

(c)                                  use
its commercially reasonable efforts to preserve its business organization;

 

(d)                                 conduct
its business in the ordinary course in accordance with past practices, keep its
properties in good working order and condition (normal wear and tear excepted)
in accordance with past practice and from time to time make all repairs to,
renewals of or replacements of its properties that would be made in the ordinary
course of business so that the efficiency of its business operation shall be
reasonably maintained and preserved;

 

(e)                                  comply
in all material respects with all Requirements of Law and with the directions
of any Governmental Authority having jurisdiction over the Company, its
Subsidiaries and their respective business or property; and

 

(f)                                    file
or cause to be filed in a timely manner all reports, applications, estimates
and licenses that shall be required by a Governmental Authority.

 

8.2                                 Interim
Covenants.   From and after the date hereof through and
until the earlier of the Closing and the termination of this Agreement pursuant
to Article IX, without the prior written consent of the Purchasers, the
Company shall not, except as contemplated by the Transaction Documents, and
shall cause each of its Subsidiaries not to:

 

(a)                                  amend
its Certificate of Incorporation or By-laws or comparable governing documents;

 

(b)                                 take
any action that would require the consent of the Purchasers pursuant to Article IV,
Section 4(d) of the Certificate of Incorporation, assuming the Preferred
Stock had been issued to the Purchasers as of the Closing Date; and

 

(c)                                  operate
or conduct its business in a manner other than in the ordinary course of
business consistent with past practice.

 

Notwithstanding the
foregoing, nothing herein shall prevent the Company from (x) establishing
the Stock Option Plan pursuant to which an aggregate of up to 529,412 shares of
Common Stock will be reserved for issuance thereunder, (y) granting options
pursuant to such Stock Option Plan or (z) entering into executive
employment agreements with Michael Greenough and/or Graeme Cooksley.

 

33

 

8.3                                 Financial
Statements and Other Information.  So
long as any Purchaser shall hold 15% of the issued and outstanding Purchased
Shares, the Company shall deliver to each Purchaser, in form and substance
satisfactory to such Purchaser:

 

(a)                                  as
soon as available, but not later than ninety (90) days after the end of each
fiscal year of the Company, a copy of the audited consolidated  balance sheet of the Company and its
Subsidiaries as of the end of such fiscal year and the related statements of
operations and cash flows for such fiscal year, setting forth in each case in
comparative form the figures for the previous year, all in reasonable detail
and accompanied by a management summary and analysis of the operations of the
Company for such fiscal year and by the opinion of a nationally recognized
independent certified public accounting firm which report shall state without
qualification that such financial statements present fairly the financial
condition as of such date and results of operations and cash flows for the
periods indicated in conformity with GAAP applied on a consistent basis;

 

(b)                                 commencing
with the fiscal period ending on December 31, 2002, as soon as available,
but in any event not later than forty-five (45) days after the end of each of
the first three fiscal quarters of each fiscal year, the unaudited consolidated
balance sheet of the Company and its Subsidiaries, and the related statements
of operations and cash flows for such quarter and for the period commencing on
the first day of the fiscal year and ending on the last day of such quarter,
all certified by an appropriate officer of the Company as presenting fairly the
consolidated financial condition as of such date and results of operations and
cash flows for the periods indicated in conformity with GAAP applied on a
consistent basis, subject to normal year-end adjustments and the absence of
footnotes required by GAAP;

 

(c)                                  commencing
with the month ending after the Closing Date, as soon as available, but in any
event not later than fifteen (15) days after the end of each month of each
fiscal year (i) the unaudited consolidated balance sheet of the Company and its
Subsidiaries, and the related statements of operations and cash flows for such
month and for the period commencing on the first day of the fiscal year and
ending on the last day of such month, all certified by an appropriate officer
of the Company as presenting fairly the consolidated financial condition as of
such date and results of operations and cash flows for the periods indicated in
conformity with GAAP applied on a consistent basis, subject to normal year-end
adjustments and the absence of footnotes required by GAAP and (ii) the
projected consolidated balance sheet of the Company and its Subsidiaries, and
the related statements of operations and cash flows for the remaining months of
the fiscal year in a comparative format; and

 

(d)                                 if
requested by any of the Purchasers, as promptly as practicable, but not later
than fifteen (15) days after the end of each fiscal year of the Company, a
certificate signed by the Chief Executive Officer of the Company in customary
form certifying that the Company is not a “foreign person” within the meaning
of Section 1445 of the Code; and

 

34

 

(e)                                  such
other information regarding the operations, business, affairs and financial
condition of the Company as GAP LP reasonably may request.

 

8.4                                 Reservation
of Common Stock.  Until the Purchased
Shares are converted into Common Stock or otherwise cancelled, as provided in
the Certificate of Incorporation, the Company shall reserve and keep available
out of its authorized shares of Common Stock, solely for the purpose of issue
or delivery upon conversion of the Purchased Shares, the maximum number of
shares of Common Stock that may be issuable or deliverable upon such conversion
or the Company shall take such action as is called for under the Certificate of
Incorporation to increase the number of authorized shares of Common Stock to
provide for conversion of each of the outstanding Purchased Shares into Common
Stock.  Such shares of Common Stock when
issued or delivered in accordance with the Certificate of Incorporation, shall
be duly authorized, validly issued, fully paid and non-assessable.  The Company shall issue such shares of Common
Stock in accordance with the terms of the Certificate of Incorporation and
otherwise comply with the terms hereof and thereof.

 

8.5                                 Insurance.  The Company shall maintain insurance with
insurance companies or associations with a rating of “A” or better as
established by Best’s Rating Guide (or an equivalent rating with such other
publication of a similar nature as shall be in current use) in such amounts and
covering such risks as are usually and customarily carried with respect to
similar businesses according to its locations.

 

8.6                                 Books
and Records.  The Company shall keep
proper books of record and account, in which full and materially correct
entries shall be made of all financial transactions and the assets and business
of the Company in accordance with GAAP consistently applied.

 

8.7                                 Back-ups
of Computer Software.  The Company
shall make back-ups of all material computer software programs and databases
and shall maintain such software programs and databases at a secure off-site
location.

 

8.8                                 Inspection.  The Company shall permit representatives of
the Purchasers to visit and inspect any of its properties, to examine its
corporate, financial and operating records and make copies thereof or abstracts
therefrom, and to discuss its affairs, finances and accounts with their
respective directors, officers and independent public accountants, all at such
reasonable times during normal business hours and as often as may be reasonably
requested upon reasonable advance notice to the Company.

 

8.9                                 The
Acquisition.  The Company
acknowledges that the Purchasers have entered into this Agreement in reliance
upon the fact that the Company has consummated the transactions contemplated by
the Infinium Merger Agreement.

 

8.10                           Existing
Debt.  The Company agrees that it
shall make a reasonably diligent effort to refinance the remaining Indebtedness
outstanding under the Amended and Restated Subordinated Promissory Note after
the Closing Date with an 

 

35

 

unaffiliated lender on customary terms and conditions that, in the
reasonable judgment of the Company, are not less favorable than current market
rates for similar loans.

 

8.11                           Covenants
of Cerberus.  Cerberus hereby agrees
to use its commercially reasonable efforts to cause the Company to consummate
the transactions contemplated by the Transaction Documents, including, without
limitation, by using its commercially reasonable efforts to comply and cause
the Company to comply with all of its obligations under this Agreement and the
other Transaction Documents and by using its commercially reasonable efforts to
cause the conditions set forth in Sections 5.16, 5.17, 5.18 and 5.19 hereof to
be satisfied at or prior to Closing.

 

8.12                           Intellectual
Property.  The
Company shall make a reasonably diligent effort to cause to be properly
registered with the United States Patent and Trademark Office or Copyright
Office, as applicable, and their applicable foreign equivalents, all
documentation necessary to evidence clean chain of title transfer to the
Company or a Subsidiary from all prior registered owners of all registered
Trademarks and Copyrights with respect to which the failure to do so would be
reasonably likely to have a material adverse effect on the Condition of the
Company.

 

ARTICLE IX

 

TERMINATION OF AGREEMENT

 

9.1                                 Termination.  This Agreement may be terminated prior to the
Closing as follows:

 

(a)                                  at
any time on or prior to the Closing Date, by mutual written consent of the
Company and the Purchasers;

 

(b)                                 at
the election of the Company or the Purchasers by written notice to the other
parties hereto after 5:00 p.m., New York time, on April 15, 2003, if the
Closing shall not have occurred, unless such date is extended by the mutual
written consent of the Company and the Purchasers; provided, however,
that the right to terminate this Agreement under this Section 9.1(b) shall
not be available (i) to any party whose breach of any representation, warranty,
covenant or agreement under this Agreement has been the cause of, or resulted
in, the failure of the Closing to occur on or before such date or (ii) if
the Closing has not occurred solely because any party hereto has not yet
obtained a necessary approval from any Governmental Authority;

 

(c)                                  at
the election of the Company, if there has been a material breach of any representation,
warranty, covenant or agreement on the part of any of the Purchasers contained
in this Agreement, which breach (i) would cause the conditions set forth in Section 6.5
or 6.6 not to be satisfied and (ii) is incapable of cure or has not been cured within
fifteen (15) Business Days of notice to the Purchasers of such breach; or

 

(d)                                 at
the election of the Purchasers, if there has been a material breach of any
representation, warranty, covenant or agreement on the part of the 

 

36

 

Company contained in this Agreement, which breach (i) would cause the
conditions set forth in Section 5.1 or 5.2 
not to be satisfied and (ii) is incapable of cure or has not been cured
within fifteen (15) Business Days notice to the Company and Cerberus of such
breach.

 

If this Agreement so
terminates, it shall become null and void and have no further force or effect,
except as provided in Section 9.3.

 

9.2                                 [Intentionally
Omitted.] 

 

9.3                                 Survival.  If this Agreement is terminated and the
transactions contemplated hereby are not consummated as described above,
(a) this Agreement shall become void and of no further force and effect,
except for the provisions of Article 1 and this Section 9.3, (b) none
of the parties hereto shall have any liability in respect of a termination of
this Agreement pursuant to Section 9.1(a) or Section 9.1(b), and (c)
nothing shall relieve any of the parties from liability for actual damages
resulting from a termination of this Agreement pursuant to Section 9.1(c)
or 9.1(d); and provided, further, that none of the parties hereto
shall have any liability for speculative, indirect, unforeseeable or
consequential damages or lost profits resulting from any legal action relating
to any termination of this Agreement.

 

ARTICLE X

 

MISCELLANEOUS

 

10.1                           Survival
of Representations and Warranties. 
All of the representations and warranties made herein shall survive the
execution and delivery of this Agreement until the date that is sixty (60) days
after the receipt by the Purchasers of audited financial statements of the
Company for the fiscal year ending July 31, 2003 (or, if such fiscal year
changes and no such audited consolidated financial statements are available,
then the successor fiscal year), except for (a) Sections 3.1, 3.2,
3.4, 3.7, 3.15, and 3.28, which representations and warranties shall survive
until the third anniversary of the Closing Date, and (b) Section 3.12,
which shall survive until the later to occur of (i) the lapse of the
statute of limitations with respect to the assessment of any Tax to which such
representation and warranty relates (including any extensions or waivers
thereof) and (ii) sixty (60) days after the final administrative or
judicial determination of the Taxes to which such representation and warranty
relates, and no claim with respect to Section 3.12 may be asserted
thereafter with the exception of claims arising out of any fact, circumstance,
action or proceeding to which the party asserting such claim shall have given
notice to the other parties to this Agreement prior to the termination of such
period of reasonable belief that a tax liability will subsequently arise
therefrom.

 

10.2                           Notices.  All notices, demands and other communications
provided for or permitted hereunder shall be made in writing and shall be by
registered or certified first-class mail, return receipt requested, telecopier,
courier service or personal delivery:

 

37

 

if to the Company:

 

SSA Global Technologies, Inc.

500 West Madison

Suite 1600

Chicago, IL  60661

Telecopy:  (312) 474-7500

Attention: 
President

 

with copies to:

 

SSA Global Technologies, Inc.

500 West Madison

Suite 1600

Chicago, IL  60661

Telecopy:  (312) 474-7500

 

Attention: 
General Counsel

 

and

 

Cerberus Capital Management, L.P.

450 Park Avenue

New York, NY 10022

Telecopy:  (212) 891-1540

Attention:  Mark
A. Neporent

                  Chief
Operating Officer

 

if to the Purchasers:

 

c/o General Atlantic Service Corporation

3 Pickwick Plaza

Greenwich, CT 06830

Telecopy:  (203) 622-8818

Attention:  Matthew Nimetz

                  Thomas
J. Murphy

 

with a copy to:

 

Paul, Weiss, Rifkind, Wharton & Garrison LLP

1285 Avenue of the Americas

New York, NY 10019-6064

Telecopy:  (212) 757-3990

Attention:  Douglas A. Cifu, Esq.

 

38

 

if to Cerberus:

 

Cerberus Capital Management, L.P.

450 Park Avenue

New York, NY 10022

Telecopy:  (212) 891-1540

Attention:  Mark
A. Neporent

                  Chief
Operating Officer

 

with a copy to:

 

Schulte Roth & Zabel LLP

919 Third Avenue

New York, NY  10022

Telecopy: (212) 593-5955

Attention: Robert B. Loper, Esq.

 

All such notices, demands
and other communications shall be deemed to have been duly given when delivered
by hand, if personally delivered; when delivered by courier, if delivered by
commercial courier service; five (5) Business Days after being deposited in the
mail, postage prepaid, if mailed; and when receipt is mechanically
acknowledged, if telecopied.  Any party
may by notice given in accordance with this Section 10.2 designate another
address or Person for receipt of notices hereunder.

 

10.3                           Successors
and Assigns; Third Party Beneficiaries. 
This Agreement shall inure to the benefit of and be binding upon the
successors and permitted assigns of the parties hereto.  Subject to applicable securities laws and the
terms and conditions thereof, the Purchasers may assign any of their rights
under this Agreement or the other Transaction Documents to any of their
respective Affiliates.  The Company may
not assign any of its rights under this Agreement without the written consent
of the Purchasers.  Except as provided in
Article VII, no Person other than the parties hereto and their successors
and permitted assigns is intended to be a beneficiary of this Agreement.

 

10.4                           Amendment
and Waiver.

 

(a)                                  No
failure or delay on the part of the Company or the Purchasers in exercising any
right, power or remedy hereunder shall operate as a waiver thereof, nor shall
any single or partial exercise of any such right, power or remedy preclude any
other or further exercise thereof or the exercise of any other right, power or
remedy.  The remedies provided for herein
are cumulative and are not exclusive of any remedies that may be available to
the Company or the Purchasers at law, in equity or otherwise.

 

(b)                                 Any
amendment, supplement or modification of or to any provision of this Agreement,
any waiver of any provision of this Agreement, and any consent to any departure
by the Company or the Purchasers from the terms of any provision of this
Agreement, shall be effective (i) only if it is made or given in writing
and signed by the Company and the Purchasers purchasing a majority of the
Purchased 

 

39

 

Shares, and (ii) only in the specific instance and for the
specific purpose for which made or given. 
Except where notice is specifically required by this Agreement, no
notice to or demand on the Company in any case shall entitle the Company to any
other or further notice or demand in similar or other circumstances.

 

10.5                           Counterparts.  This Agreement may be executed in any number
of counterparts and by the parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

 

10.6                           Headings.  The headings in this Agreement are for
convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

 

10.7                        GOVERNING
LAW; CONSENT TO JURISDICTION.  THIS
AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAW
THEREOF.  The parties hereto
irrevocably submit to the exclusive jurisdiction of any state or federal court
sitting in the County of New York, in the State of New York over any suit,
action or proceeding arising out of or relating to this Agreement, the other
Transaction Documents, the Purchased Shares or the affairs of the Company.  To the fullest extent they may effectively do
so under applicable law, the parties hereto irrevocably waive and agree not to
assert, by way of motion, as a defense or otherwise, any claim that they are
not subject to the jurisdiction of any such court, any objection that they may
now or hereafter have to the laying of the venue of any such suit, action or
proceeding brought in any such court and any claim that any such suit, action
or proceeding brought in any such court has been brought in an inconvenient forum.

 

10.8                           Severability.  If any one or more of the provisions
contained herein, or the application thereof in any circumstance, is held
invalid, illegal or unenforceable in any respect for any reason, the validity,
legality and enforceability of any such provision in every other respect and of
the remaining provisions hereof shall not be in any way impaired, unless the
provisions held invalid, illegal or unenforceable shall substantially impair
the benefits of the remaining provisions hereof.

 

10.9                           Rules
of Construction.  Unless the context
otherwise requires, references to sections or subsections refer to sections or
subsections of this Agreement.

 

10.10                     Entire
Agreement.  This Agreement, together
with the exhibits and schedules hereto, and the other Transaction Documents are
intended by the parties as a final expression of their agreement and intended
to be a complete and exclusive statement of the agreement and understanding of
the parties hereto in respect of the subject matter contained herein and therein.  There are no restrictions, promises,
representations, warranties or undertakings, other than those set forth or
referred to herein or therein.  This
Agreement, together with the exhibits and schedules hereto, and the other
Transaction Documents supersede all prior agreements and understandings between
the parties with respect to such subject matter.

 

40

 

10.11                     Fees.  Upon the Closing, the Company shall reimburse
the Purchasers for the fee incurred in connection with their filing of a
notification and report form in compliance with the HSR Act up to an aggregate
amount of $45,000.  Except for the
foregoing reimbursement, each of the Company, Cerberus and the Purchasers shall
bear its own costs and expenses incurred in connection with the negotiation,
execution and consummation of this Agreement and each of the other Transaction
Documents.

 

10.12                     Publicity;
Confidentiality.  Except as may be
required by applicable Requirements of Law, none of the parties hereto shall
issue a publicity release or public announcement or otherwise make any
disclosure concerning this Agreement, the transactions contemplated hereby, the
Purchasers or any of the other parties hereto, without prior written approval
by the other parties hereto; provided, however, that nothing in
this Agreement shall restrict any of the Purchasers from disclosing information
(a) that is already publicly available, (b) that was known to such
Purchaser on a non-confidential basis prior to its disclosure by the Company,
(c) that is required or appropriate in response to any summons or subpoena
or in connection with any litigation, provided that such Purchaser will
use reasonable efforts to notify the Company and Cerberus in advance of such
disclosure so as to permit the Company and/or Cerberus, as the case may be, to
seek a protective order or otherwise contest such disclosure, and such
Purchaser will use reasonable efforts to cooperate, at the expense of the
Company, with the Company and/or Cerberus, as the case may be, in pursuing any
such protective order, (d) to the extent that such Purchaser reasonably
believes it appropriate in order to comply with any Requirement of Law, (e) to
such party’s officers, directors, shareholders, advisors, employees, members,
partners, controlling persons, auditors or counsel or (f) to Persons from whom
releases, consents or approvals are required, or to whom notice is required to
be provided, pursuant to the transactions contemplated by the Transaction
Documents; and provided  further, that the parties may disclose
the name of the Company, the name of the Chief Executive Officer of the
Company, a brief description of the business of the Company, the Company’s logo
and the aggregate amount of the Purchasers’ investment in the Company; and
provided further, that the Purchasers acknowledge that the Company intends to
issue a press release regarding this transaction on or after Closing and the
Purchasers will use their commercially reasonable efforts to review and approve
such press release in a timely manner upon the Company’s request.  If any announcement is required by any
Requirement of Law to be made by any party hereto, prior to making such
announcement such party will deliver a draft of such announcement to the other
parties and shall give the other parties reasonable opportunity to comment
thereon.

 

10.13                     Further
Assurances.  Each of the parties
shall execute such documents and perform such further acts (including, without
limitation, obtaining any consents, exemptions, authorizations or other actions
by, or giving any notices to, or making any filings with, any Governmental
Authority or any other Person) as may be reasonably required or desirable to
carry out or to perform the provisions of this Agreement.

 

[Remainder of page intentionally left blank.]

 

41

 

IN WITNESS WHEREOF, the
undersigned have executed, or have caused to be executed, this Stock Purchase
Agreement on the date first written above.

 

	
   

  	
  SSA GLOBAL
  TECHNOLOGIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Kirk Isaacson

  
	
   

  	
   

  	
   Name: Kirk
  Isaacson

  
	
   

  	
   

  	
   Title: Senior
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GENERAL ATLANTIC
  PARTNERS 76, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   GENERAL ATLANTIC
  PARTNERS, LLC,

  
	
   

  	
   

  	
   its General
  Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Matthew
  Nimetz

  
	
   

  	
   

  	
   Name: Matthew
  Nimetz

  
	
   

  	
   

  	
   Title: A Managing
  Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GAP COINVESTMENT
  PARTNERS II, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
    /s/ Matthew
  Nimetz

  
	
   

  	
   

  	
   Name: Matthew
  Nimetz

  
	
   

  	
   

  	
   Title: A General
  Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GAPSTAR, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   GENERAL ATLANTIC
  PARTNERS, LLC

  
	
   

  	
   

  	
   its Managing
  Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Matthew
  Nimetz

  
	
   

  	
   

  	
   Name: Matthew
  Nimetz

  
	
   

  	
   

  	
   Title: A Managing
  Member

  

 

Signature Page to Stock Purchase Agreement

 

 

	
   

  	
  GAPCO GMBH & CO. KG

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   GAPCO MANAGEMENT
  GMBH,

  
	
   

  	
   

  	
   its General
  Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Matthew
  Nimetz

  
	
   

  	
   

  	
   Name: Matthew
  Nimetz

  
	
   

  	
   

  	
   Title: A Managing
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SOLELY FOR PURPOSES OF SECTION 8.11:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CERBERUS CAPITAL
  MANAGEMENT, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Mark A.
  Neporent

  
	
   

  	
   

  	
   Name:

  	
  Mark A. Neporent

  
	
   

  	
   

  	
   Title:

  	
  Managing Director and
  Chief Operating

  
	
   

  	
   

  	
   

  	
  Officer

  

 

2

 

Schedule 2.1

 

Purchased Shares and Purchase Price

 

	
  Purchaser

  	
   

  	
  Purchased Shares

  	
   

  	
  Purchase Price

  	
   

  
	
  GAP LP

  	
   

  	
  698,717

  	
   

  	
  $

  	
  69,871,700

  	
   

  
	
  GAP Coinvestment

  	
   

  	
  40,895

  	
   

  	
  $

  	
  4,089,500

  	
   

  
	
  GapStar

  	
   

  	
  9,375

  	
   

  	
  $

  	
  937,500

  	
   

  
	
  GmbH Coinvestment

  	
   

  	
  1,013

  	
   

  	
  $

  	
  101,300

  	
   

  
	
  Total:

  	
   

  	
  750,000

  	
   

  	
  $

  	
  75,000,000

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"}]]