Document:

exv10w2

 

GUARANTEE

     FOR VALUE RECEIVED, the sufficiency of which is hereby acknowledged, and in connection with
that certain funding agreement (the “Funding Agreement”), entered into by and between Principal
Life Insurance Company, an Iowa insurance company (“Principal Life”), and Principal Life Income
Fundings Trust 2006-34, a New York common law trust (the “Trust”), relating to the notes (the
“Notes”) issued by the Trust, Principal Financial Group, Inc., a Delaware corporation and the
indirect parent company of Principal Life (the “Guarantor”), hereby furnishes to the Trust its full
and unconditional guarantee of the Guaranteed Amounts (as hereinafter defined) as follows:

     1. Guarantee.

          (a) The Guarantor hereby fully, irrevocably, absolutely and unconditionally guarantees, as a
guarantee of payment and not merely as a guarantee of collection, immediate payment when due to the
Trust any payments required to be made by Principal Life to the Trust under the Funding Agreement
which shall become due and payable regardless of whether such payment is due at maturity, on an
interest payment date or as a result of redemption or otherwise (the “Scheduled Payments”) but
shall be unpaid by Principal Life (the “Guaranteed Amounts”). Notwithstanding anything to the
contrary contained herein, in no event shall the Guaranteed Amounts exceed the Deposit (as defined
in the Funding Agreement) of the Funding Agreement, plus accrued but unpaid interest and any other
amounts due and owing under the Funding Agreement, less any amounts paid by Principal Life to the
Trust.

          (b) In the event that Principal Life fails to make a Scheduled Payment in full when due (the
“Payment Notice Date”), then the Trust or Citibank, N.A., as indenture trustee for the benefit of
the holders of the Notes (the “Indenture Trustee”), pursuant to the indenture (the “Indenture”)
between the Trust and the Indenture Trustee, may present the Guarantor with notice (each, a
“Payment Notice”) of such failure in writing on or after the Payment Notice Date. The Payment
Notice shall identify (1) the Funding Agreement, (2) the Trust, (3) the Payment Notice Date and (4)
the amount of the Scheduled Payments not paid by Principal Life to the Trust as of the Payment
Notice Date. Upon receipt of such Payment Notice, the Guarantor will immediately pay the
Guaranteed Amounts pursuant to Section 7.

          (c) In the event that, after receipt of a Payment Notice from the Trust, the Guarantor fails
to make immediate payment to the Trust or the Indenture Trustee of the Guaranteed Amounts, then
the Trust and the Indenture Trustee may enforce the obligations of the Guarantor under this
Guarantee, including by immediately bringing suit directly against the Guarantor (without first
bringing suit against Principal Life) for the Guaranteed Amounts not paid to the Trust as of the
Payment Notice Date.

          (d) This Guarantee is an unsecured, unsubordinated and contingent obligation of the Guarantor
and ranks equally with all other unsecured and unsubordinated obligations of the Guarantor.

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     2. Termination. This Guarantee is a continuing and irrevocable guarantee of the
Guaranteed Amounts now or hereafter existing and shall terminate and be of no further force and
effect with respect to the Funding Agreement and the Notes upon the full payment of the Scheduled
Payments or upon the earlier extinguishment of the obligations of Principal Life under the Funding
Agreement.

     3. Amendments. Subject to the trust agreement relating to the Trust and the Indenture, no
provision of this Guarantee may be waived, amended, supplemented or modified, except by a written
instrument executed by the Trust and the Guarantor.

     4. Assignment; Governing Law. This Guarantee shall inure to the benefit of the Trust and its
successors, assigns and pledgees. This Guarantee shall be governed by, and construed in accordance
with, the laws of the State of New York without regard to conflict of law principles.

     5. Notices. All notices given pursuant to this Guarantee shall be in writing, and shall
either be delivered, mailed or telecopied to the locations listed below or at such other address or
to the attention of such other persons as such party shall have designated for such purpose in a
written notice complying as to delivery with the terms of this Section 5. Each such notice shall
be effective (i) if given by telecopy, when transmitted to the applicable number so specified in
this Section 5 (such notice shall also be sent by mail, with first class postage prepaid), (ii) if
given by mail, three days after deposit in the mails with first class postage prepaid, or (iii) if
given by any other means, when actually delivered at such address.

If to the Guarantor:

Principal Financial Group, Inc.

711 High Street

Des Moines, Iowa 50392

Attention: General Counsel

Telephone: (515) 247-5111

Facsimile: (515) 248-3011

With a copy to:

Principal Life Insurance Company

711 High Street

Des Moines, Iowa 50392

Attention: Jim Fifield

Telephone: (515) 248-9196

Facsimile: (866) 496-6527

If to the Trust:

Principal Life Income Fundings Trust (followed by the number of the Trust specified in this Guarantee)

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c/o U.S. Bank Trust National Association

100 Wall Street, 16th Floor

New York, New York 10005

Attention: Thomas E. Tabor

Telephone: (212) 361-6184

Facsimile: (212) 809-5459

With a copy to:

Citibank, N.A.

Citibank Agency and Trust

388 Greenwich Street, 14th Floor

New York, New York 10013

Attention: Nancy Forte

Telephone: (212) 816-5685

Facsimile: (212) 816-5527

     6. Representations and Warranties. The Guarantor represents and warrants that: (i) it is duly
organized and in good standing under the laws of the jurisdiction of its organization and has full
capacity and right to make and perform this Guarantee, and all necessary authority has been
obtained; (ii) this Guarantee constitutes a legal, valid and binding obligation of the Guarantor
enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency and similar
laws affecting creditors’ rights and general principles of equity, regardless of whether
enforcement is sought in a proceeding in equity or at law; (iii) the making and performance of this
Guarantee does not and will not violate the provisions of any applicable law, regulation or order,
and does not and will not result in the breach of, or constitute a default under, any material
agreement, instrument or document to which it is a party or by which it or any of its property may
be bound or affected, except to the extent disclosed in the registration statement registering the
issuance of this Guarantee and the Funding Agreement, as amended, supplemented or modified from
time to time (the “Registration Statement”), and to the extent that any such violation, breach or
default does not result in a material adverse effect on the Guarantor; and (iv) all consents,
approvals, licenses and authorizations of, and filings and registrations with, any governmental
authority required under applicable law and regulations for the making and performance of this
Guarantee have been obtained or made and are in full force and effect, except to the extent
disclosed in the Registration Statement and to the extent that the failure to acquire any such
consent, approval, license, authorization, filing or registration does not result in a material
adverse effect on the Guarantor.

     7. Notice of, and Consent to, Security Interest. The Trust hereby notifies the Guarantor that
it has granted to the Indenture Trustee, on behalf of the holders of the Notes, a security interest
in the Collateral (as defined in the Indenture), including, but not limited to, any and all payment
to be made by the Guarantor to the Trust under this Guarantee. The Trust hereby notifies the
Guarantor that it has collaterally assigned to the Indenture Trustee, for the benefit of the
holders of the Notes, this Guarantee. The Guarantor, by executing this Guarantee, hereby (i)
affirms that it has made or simultaneously will make changes to its books and records to reflect
such security interest and collateral assignment, (ii) consents to the security interest

3

 

granted, and collateral assignment made, by the Trust to the Indenture Trustee of this
Guarantee, (iii) agrees to make all payments due under this Guarantee to the Collection Account (as
defined in the Indenture) or any other account designated in writing to the Guarantor by the
Indenture Trustee and (iv) agrees to comply with all orders of the Indenture Trustee with respect
to this Guarantee without any further consent from the Trust.

     8. WAIVER OF JURY TRIAL; FINAL AGREEMENT. TO THE EXTENT ALLOWED BY APPLICABLE LAW, THE
GUARANTOR WAIVES TRIAL BY JURY WITH RESPECT TO ANY ACTION, CLAIM, SUIT OR PROCEEDING ON OR ARISING
OUT OF THIS GUARANTEE. THIS GUARANTEE REPRESENTS THE FINAL AGREEMENT BETWEEN THE GUARANTOR AND THE
TRUST AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
AGREEMENTS AMONG SUCH PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG SUCH PARTIES.

	 	 	 	 	 
	 	PRINCIPAL FINANCIAL GROUP, INC.

 	 
	 	By:  	/s/ Elizabeth D. Swanson
 	 
	 
	 	Name:  	Elizabeth D. Swanson 	 
	 
	 	Title:  	Counsel 	 
	 
	 	Date:  	The Effective Date (as defined in the Funding Agreement) 	 

Acknowledged and Agreed:

THE PRINCIPAL LIFE INCOME FUNDINGS

TRUST DESIGNATED IN THIS GUARANTEE

			
	By:     	 	U.S. Bank Trust National Association,
not in its individual capacity, but solely in its
capacity as trustee

			
	By:     	 	Bankers Trust Company, N.A.,
under Limited Power of Attorney, dated February 16, 2006

			
	By:	 	/s/ Diana L. Cook 

			
	Name:	 	Diana L. Cook 

			
	Title:	 	Vice President 

			
	Date:	 	The Effective Date (as defined in the Funding
Agreement)

4exv10w2

 

EXHIBIT 10.2

EMPLOYMENT AGREEMENT

     Diamond Technology Partners, Inc. (“Diamond Technology”) and Karl Bupp (“Employee”)
enter into this Employment Agreement (“Agreement”) dated April 18, 1994
(the “Effective Date”).

     In consideration of the agreements and covenants contained in the Agreement, Diamond
Technology and Employee agree as follows:

     1. Employment Duties. Diamond Technology shall employ Employee as
an officer of Diamond Technology and be identified within the organization as a “Partner.”
Employee shall have such responsibilities, duties and authority, consistent with those of an
executive employee, as may be assigned to him/her by Diamond Technology’s management,
officers and partners (“Management”) and agrees to perform such duties as Diamond
Technology may from time-to-time request. In addition, Employee shall, at the direction
of Management, participate in the administration and execution of Diamond Technology’s
policies, business affairs, and operations. Employee shall perform faithfully the duties
assigned to him/her and shall devote his/her full and undivided time and attention and
his/her best efforts to the business of Diamond Technology.

     2. Salary. As compensation for Employee’s services, Diamond Technology
shall initially credit to Employee a level of base compensation at the annual rate listed in
Exhibit A to this Agreement: a portion of the Employee’s base compensation will be paid
to him/her at Diamond Technology’s regular executive payroll intervals, and the balance will
be deferred and the payment thereof will be subject to various qualifications and conditions
as set forth in the Diamond Technology’s Partners’ Operating Agreement dated March 22,
1994 (“the Partners’ Operating Agreement”). Employee’s base compensation shall be subject
to annual review and may, in accordance with the Partners’ Operating Agreement be
adjusted at the time of such reviews or at any other time or times according to Employee’s
responsibilities, capabilities and performance.

     3. Bonus. Diamond Technology may elect to pay annual bonuses. It is
presently contemplated that Partners subject to a deferral of a portion of salary will not be
eligible to earn bonuses. The decision to pay any bonuses and the actual payment of such
bonuses, if any, shall be at the sole discretion of Diamond Technology.

     4. Employee Benefits. During the period of his/her employment,
Employee shall be entitled to participate in such employee benefit plans, including group
pension, life and health insurance and other medical benefits, and shall receive such other
fringe benefits, as Diamond Technology may make available generally to Partners.

 

 

          5. Business Expenses. Diamond Technology shall reimburse Employee
for all reasonable and necessary business expenses incurred by Employee in performing
his/her duties. Employee shall provide Diamond Technology with supporting documentation sufficient
to satisfy reporting requirements of the Internal Revenue Service and Diamond Technology. Diamond
Technology’s determination as to reasonableness and necessity shall be final.

          6. Non-Disclosure and Non-Competition. Employee acknowledges that
the successful marketing and development of Diamond Technology’s professional services
and products requires substantial time and expense. Such efforts utilize and generate
valuable confidential and proprietary information, of which Employee will obtain knowledge.
As used herein, “Confidential Information” means any information of Diamond Technology
that Diamond Technology considers to be proprietary and treats as confidential or
information of any third party that Diamond Technology is under an obligation to keep
confidential, including, but not limited to, the following: inventions, products, business
strategies, plans, proposals, deliverables, prospect and customer lists, methodologies,
training
materials, computer software, documents, models, source code, designs, know how,
techniques, systems, processes, works of authorship, projects, plans, proposals and flow
charts, and listings of any or all of the foregoing. All Confidential Information is and shall
at all times remain the exclusive property of Diamond Technology. Confidential
Information does not include: (i) information that at the time of disclosure is in the public
domain through no fault of Employee’s; (ii) information received from a third party outside
of Diamond Technology that was disclosed without a breach of any confidentiality
obligation; (iii) information approved for release by written authorization of Diamond
Technology; or (iv) information that may be required by law or an order of any court,
agency or proceeding to be disclosed. Employee agrees to undertake the following
obligations, which he/she acknowledges to be reasonably designed to protect Diamond
Technology’s legitimate business interests without unnecessarily or unreasonably restricting
Employee’s post-employment opportunities:

               (a) Employee agrees that he/she will not at any time, whether
during or after the cessation of his/her employment, reveal to any person or any entity any
of the Confidential Information, except, and only to the extent, as may be required in the
ordinary course of performing Employee’s assigned duties as an employee of Diamond
Technology, and Employee agrees to keep secret, and take all necessary precautions against
disclosure of, all Confidential Information and all matters entrusted to him/her and not to
use or attempt to use any Confidential Information in any manner that may cause injury or
loss, or may be calculated to cause injury or loss, whether directly or indirectly, to the
Company or its clients;

               (b) Employee agrees that during his/her employment he/she shall
not take, use or permit to be used any notes, memoranda, reports, lists, records, drawings,
sketches, specifications, software programs, data, documentation or other materials of any
nature relating to any matter within the scope of the business of Diamond Technology or

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concerning any of its dealings or affairs otherwise than for the benefit of Diamond
Technology;

               (c) Upon cessation of his/her employment relationship with
Diamond Technology, Employee shall deliver to Diamond Technology all Confidential
Information and other materials in his/her possession or delivered to him/her by Diamond
Technology, including but not limited to computer programs, files, notes, records,
memoranda, reports, lists, drawings, sketches, specifications, data, charts, and other
documents, materials and things (“Materials”), whether or not containing Confidential
Information, prepared by Employee in connection with his/her employment by Diamond
Technology, it being agreed that all Materials shall be and remain the sole and exclusive
property of Diamond Technology;

               (d) Without limiting the obligations of paragraph 6(c), Employee
agrees that while Employee is employed by Diamond Technology and for a period of
eighteen months following cessation of his/her employment relationship with Diamond
Technology, he/she will not, whether alone or as owner, partner, officer, director,
consultant,
agent, employee independent contractor, or stockholder of any firm, corporation or other
commercial enterprise, directly or indirectly solicit engagements with: (i) any client of
Diamond Technology for whom Diamond Technology performed services within the one
year period preceding his/her cessation of employment, or (ii) any current client prospect
of Diamond Technology for whom Employee directly or indirectly assisted in the
preparation or submission of a proposal made by Diamond Technology to such client
prospect during the one year period preceding his/her cessation of employment, unless
Diamond Technology acknowledges in writing its intent not to further pursue such client
prospect; Employee shall, however, be permitted to own securities of any public company
not in excess of five percent (5%) of any class of such securities and to own stock,
partnership interests or other securities of any non-public entity not in excess of five
percent
(5%) of any class of such securities, and such ownership shall not be considered to be in
competition with Diamond Technology;

               (e) While employed and during the eighteen month period
immediately following cessation of Employee’s employment relationship with Diamond
Technology for any reason, Employee shall not, directly or indirectly, solicit any employee
of Diamond Technology to work for any person, partnership or entity other than Diamond
Technology, or engage in any activity that would cause any employee to violate any
agreement with Diamond Technology, or dissuade, or attempt to dissuade, any such
employee from faithfully discharging such employee’s contractual and fiduciary obligations
to serve Diamond Technology’s interests with undivided loyalty.

          7. Remedies. Employee recognizes and agrees that a breach of any or all of the
provisions of paragraph 6 will constitute immediate and irreparable harm to Diamond Technology for
which damages cannot be readily calculated and for which damages are an inadequate remedy.
Accordingly, Employee acknowledges that in addition to any and all

-3-

 

remedies at law, Diamond Technology shall be entitled to specific performance or injunctive
or other equitable relief to prevent the violation of Employee’s obligations under this Agreement.

          8. Intellectual Property. During the employment period, Employee shall disclose
immediately to Diamond Technology all ideas, inventions and business plans that he/she makes,
conceives, discovers or develops during the course of his/her employment with Diamond Technology,
including but not limited to any inventions, modifications, discoveries, developments,
improvements, computer programs, processes, products or procedures (whether or not protectable upon
application by copyright, patent trademark, trade secret or other proprietary rights) (“Work
Product”) that: (i) relate to the business of Diamond Technology or any customer or supplier to
Diamond Technology or any of the products or services being developed, manufactured, sold or
otherwise provided by Diamond Technology or that may be used in relation therewith; or (ii) result
from tasks assigned to Employee by Diamond Technology; or (iii) result from the use of the premises
or personal property (whether tangible or intangible) owned, leased or contracted for by Diamond
Technology. Employee agrees that any Work Product shall be the property of Diamond Technology and,
if subject to copyright, shall be considered a “work made for hire” within the meaning of the
Copyright Act of 1976, as amended (the “Act”). If and to the extent that any such Work Product is
found as a matter of law not to be a “work made for hire” within the meaning of the Act, Employee
expressly assigns to Diamond Technology all right, title and interest in and to the Work Product,
and all copies thereof, and the copyright, patent, trademark, trade secret and all their
proprietary rights in the Work Product, without further consideration, free from any claim, lien
for balance due or rights of retention thereto on the part of Employee.

          Employee agrees that upon disclosure of Work Product to Diamond Technology, Employee will,
during his/her employment and at any time thereafter, at the request and cost of Diamond
Technology, execute all such documents and perform all such acts as Diamond Technology or its duly
authorized agents may reasonably require: (i) to apply for, obtain and vest in the name of Diamond
Technology alone (unless Diamond Technology otherwise directs) letters patent, copyrights or other
analogous protection in any country throughout the world, and when so obtained or vested to renew
and restore the same; and (ii) to defend any opposition proceedings in respect of such
applications and any opposition proceedings or petitions or applications for revocation of such
letters patent, copyright or other analogous protection.

          In the event that Diamond Technology is unable, after reasonable effort, to secure Employee’s
signature on any letters patent, copyright or other analogous protection relating to Work Product,
whether because of Employee’s physical or mental incapacity or for any other reason whatsoever,
Employee hereby irrevocably designates and appoints Diamond Technology and its duly authorized
officers and agents as his/her agent and attorney-in-fact, to act for and on his/her behalf to
execute and file any such application or applications and to do all other lawfully permitted acts
to further the prosecution and

-4-

 

issuance of letters patent, copyright and other analogous protection with the same legal
force and effect as if personally executed by Employee.

          9. Costs and Expenses of Enforcement. Employee agrees to reimburse
Diamond Technology for all costs and expenses, including reasonable attorneys’ fees,
incurred by Diamond Technology in connection with the enforcement of its rights under any
provision of this Agreement; provided, however, that Diamond Technology agrees to seek
reimbursement only for matters, including acts or omissions (whether direct or indirect),
done knowingly, willfully or intentionally in disregard of Employee’s obligations under this
Agreement.

          10. Indemnity. Provided that Employee performs all of his duties and
obligations under this Agreement, Diamond Technology agrees to defend, indemnify and
hold Employee harmless from and against all damages, liability and expenses, including
reasonable attorney’s fees, arising as a result of claims brought against Employee by his/her
latest employer preceding his/her employment with Diamond Technology (“Previous
Employer”): (i) alleging any breach, for the benefit of Diamond Technology, of Employee’s
obligations to the Previous Employer with respect to Confidential Information of the
Previous Employer; (ii) based upon Diamond Technology’s hiring of Employee; or (iii) that
are deemed by Diamond Technology, in its sole discretion, to be frivolous or harassing.
Notwithstanding the foregoing, Diamond Technology shall have no indemnification
obligations under this Agreement or otherwise in respect of any willful or intentional breach
of the Employee’s obligations to the Previous Employer with respect to Confidential
Information of the Previous Employer.

          11. Assignment. Employee acknowledges that the services to be rendered
pursuant to this Agreement are unique and personal. Accordingly, Employee may not assign
any of his/her rights or delegate any of his/her duties or obligations under this Agreement.
Diamond Technology may assign its this Agreement to its successors or assigns, or to a
subsidiary or to a purchaser or transferee of all, or substantially all, of the assets of
Diamond Technology, and all covenants and agreements of Employee under this Agreement
shall inure to the benefit of and be enforceable by such successors, assigns, subsidiaries,
purchasers or transferees.

          12. Notices. All notices hereunder shall be in writing. Notices intended
for Diamond Technology shall be sent by registered or certified mail addressed to Diamond
Technology at 444 North Michigan Avenue, Suite 3600, Chicago, Illinois 60611, or its
current principal office, and notices intended for Employee shall be either delivered
personally to him/her or sent by registered or certified mail addressed to his/her last known
address.

          13. Entire Agreement. This Agreement constitutes the entire agreement
between Diamond Technology and Employee with respect to the subject matter hereof and
supersedes any and all other prior or contemporary oral or written representations or

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agreements between the parties regarding such subject matter; however, it is mutually acknowledged
that the parties may enter into a Partners’ Operating Agreement governing the relationships among
the Partners, including certain matters relating to compensation and to the payment of the
deferred portion of base compensation. Subsequent to the Effective Date, this Agreement
specifically supersedes any prior non-disclosure agreement executed by Employee; provided,
however, that the terms and conditions of any such prior agreement remain in full force and effect
for the period between execution of such agreement and the Effective Date of this Agreement.
Neither Employee nor Diamond Technology may modify this Agreement by oral agreements, promises or
representations. The parties may modify this Agreement only by a written instrument executed by
both parties.

          14. Applicable Law. This Agreement shall be governed by, and construed
in accordance with, the laws of the State of Illinois. Diamond Technology and Employee
consent to jurisdiction and venue only in the Circuit Court of Cook County, Illinois, or the
Federal District Court for the Northern District of Illinois.

          15. Severability. Employee acknowledges that the type and periods of
restriction imposed in the provisions of this Agreement are fair and reasonable and are
reasonably required for the protection of Diamond Technology and the goodwill associated
with the business of Diamond Technology. Each provision herein shall be treated as a
separate and independent clause, and the unenforceability of any one clause shall in no way
impair the enforceability of any of the other clauses herein. If any provision contained in
this Agreement shall for any reason be held to be prohibited by, or invalid under, applicable
law, or to be excessively broad as to scope, activity or subject so as to be unenforceable at
law, such provision shall be construed to be ineffective only to the extent of such
prohibition
without invalidating the remainder of such provision or the remaining provisions of this
Agreement or, in the case of a provision found to be excessively broad, by limiting and
reducing such provision so as to permit such provision to be enforceable to the maximum
extent compatible with the applicable law as it shall then appear.

          16. Waiver. The failure of Diamond Technology to exercise any right
hereunder shall not operate or be construed as a waiver of any right hereunder. Employee’s
obligations under this Agreement shall survive the cessation of employment regardless of
the manner of such termination and shall be binding on Employee’s heirs, executors,
administrators and legal representatives.

          17. No Term of Employment. As revised, nothing in this Agreement shall
be deemed to create any term of employment, it being expressly understood and agreed that
Employee’s employment is at will and that either party may terminate such employment at
any time.

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          18. Acknowledgment. Employee acknowledges that he/she has read and
understood, and accepts, the provisions of this Agreement.

	 	 	 	 	 
	 	 	EMPLOYEE
	 
	 	 	 	 
	 	 	/s/ Karl E. Bupp
	 	 	 
	 	 	Karl Bupp
	 
	 	 	 	 
	 	 	DIAMOND TECHNOLOGY PARTNERS, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Melvyn E. Bergstein
	 

	 	 	 	Melvyn E. Bergstein 

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EXHIBIT A

TO

EMPLOYMENT AGREEMENT

     BASE SALARY: $200,000; subject to paragraph D of the Partners’ Operating Agreement
incorporated herein by this reference.

-8-

 

AMENDMENT TO EMPLOYMENT AGREEMENT

BY AND BETWEEN

DIAMOND TECHNOLOGY PARTNERS, INC.

AND EMPLOYEE

     Diamond Technology Partners, Inc. (“Diamond Technology”) and Karl E. Bupp (“Employee”)
enter into this Amendment to Employment Agreement (“Amendment”).

     In consideration of the agreements and covenants contained in the Employment Agreement and
this Amendment, and to effect Diamond Technology’s indemnification of Employee as herein set forth,
Diamond Technology and Employee agree as follows:

	 	1.	 	Paragraph 10 of the Agreement, entitled “Indemnity” is hereby stricken
and the following language is hereby substituted in its stead:
	 
	 	 	 	Indemnity. Provided that Employee performs all of his duties and
obligations under this Agreement, Diamond Technology agrees to defend, indemnify and
hold Employee harmless from and against all damages, liability and expenses,
including reasonable attorney’s fees, arising as a result of: (a) claims brought
against Employee by his/her latest Employer preceding his/her employment with
Diamond Technology (“Previous Employer”) (i) alleging any breach, for the benefit of
Diamond Technology, of Employee’s obligations to the Previous Employer with respect
to Confidential Information of the Previous Employer; (ii) based upon Diamond
Technology’s hiring of Employee; or (iii) that are deemed by Diamond Technology, in
its sole discretion, to be frivolous or harassing; or (b) claims brought by any
client of Diamond Technology alleging the breach of any duty owed by Diamond
Technology or Employee to such client. Notwithstanding the foregoing, Diamond
Technology shall have no indemnification obligations: (x) under clause (a) of the
preceding sentence of this Paragraph 10, or otherwise, in respect of any willful or
intentional misconduct or breach of the Employee’s obligations to the Previous
Employer with respect to Confidential Information of the Previous Employer; or (y)
under clause (b) of the preceding sentence of this Paragraph 10, or otherwise, in
respect of any willful or intentional misconduct or breach by the Employee of the
Employee’s obligations to Diamond Technology; or (z) arising from or relating to any
Employee action that is outside the scope of his/her employment.

 

 

     2. Acknowledgement. Employee acknowledges that he/she has read and
understood, and accepts, the provisions of this Amendment.

Dated:

	 	 	 	 	 
	 	 	EMPLOYEE
	 
	 	 	 	 
	 	 	               /s/ Karl E. Bupp
	 	 	 
	 	 	                    Karl E. Bupp
	 
	 	 	 	 
	 	 	DIAMOND TECHNOLOGY PARTNERS, INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Melvyn E. Bergstein
	 

	 	 	 	 
	 

	 	 	 	Melvyn E. Bergstein

 

 

AMENDMENT NUMBER TWO TO EMPLOYMENT AGREEMENT

BY AND BETWEEN

DIAMOND TECHNOLOGY PARTNERS, INC.

AND EMPLOYEE

     This is an amendment (“Amendment”), dated as of November 30, 1994, to a certain Employment
Agreement dated April 18, 1994, between Diamond Technology Partners, Inc. (“Diamond Technology”)
and Karl E. Bupp (“Employee”), as previously amended (the “Employment Agreement”).

     In consideration of the agreements and covenants contained in the Employment Agreement and this
Amendment and for other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, Diamond Technology and Employee agree as follows:

     1. The Employment Agreement is hereby amended by adding thereto a new paragraph 18, which
shall read as follows:

     “18.
Charitable Contributions.

          (a) Effective April 1, 1995, Employee will contribute in each calendar year during his/her
employment with Diamond Technology, at least two percent (2%) of Employee’s gross base compensation
in effect for the then current calendar year, to charities approved by the Operations Committee (as
defined in the Partners’ Operating Agreement). All such contributions will be made pursuant to
policies established from time to time by the Operations Committee. Employee authorizes Diamond
Technology to make any deductions, including, without limitation, periodic deductions, from base
compensation payable to Employee, in accordance with such policies.

          (b) The Operations Committee will approve charities on an ongoing basis from time to time and
will publish the list of approved charities. Employee may request approval for charities not
already on the list of approved charities from the Operations Committee no later than thirty (30)
days prior to the end of any calendar year for contributions made during that year.

          (c) Diamond Technology will match, up to two percent (2%) of Employee’s gross base compensation,
the amount of any contributions made by, or directed to be made on behalf of, the Employee to any
colleges or universities where Diamond Technology recruits or intends to recruit for new employees.
The Operations Committee will maintain and publish a list of such colleges and universities. The
Operations Committee may from time to time limit or eliminate Diamond Technology’s matching
contribution obligation if it determines that to do so would
be in the best business interests of Diamond Technology.

 

 

     2. Acknowledgement. Employee acknowledges that he/she has read and
understood, and accepts, the provisions of this Amendment.

     IN WITNESS WHEREOF, the undersigned have executed this Amendment Number Two to Employment Agreement
by and between Diamond Technology Partners, Inc. and Employee as of the date first written above.

	 	 	 	 	 
	 	 	EMPLOYEE
	 
	 	 	 	 
	 	 	/s/ Karl E. Bupp
	 	 	 
	 
	 	 	 	 
	 	 	DIAMOND TECHNOLOGY PARTNERS, INC.
	 
	 	 	 	 
	 

	 	By: 
	/s/ Melvyn E. Bergstein
	 

	 	 	Melvyn E. Bergstein 

-2-

 

THIRD AMENDMENT TO

DIAMOND TECHNOLOGY PARTNERS, INC.

PARTNERS’ OPERATING AGREEMENT

     This is an amendment (“Amendment”), dated as of April 27, 1995, to a certain Diamond
Technology Partners, Inc. Partners’ Operating Agreement dated March 22, 1994, as amended by a
certain First Amendment to Diamond Technology Partners, Inc. Partners’ Operating Agreement dated
June 24, 1994 and a certain Second Amendment to Diamond Technology Partners, Inc. Partners’
Operating Agreement dated as of November 30, 1994 (as thus amended, the “Operating Agreement”),
each between Diamond Technology Partners, Inc. (“DTP”) and certain shareholders of DTP; this
Amendment is made between DTP, Melvyn E. Bergstein (“Bergstein”) as holder of the Proxy granted
under the Operating Agreement, and all of the persons who are now “Partners” (as defined in the
Operating Agreement).

     In consideration of the mutual promises set forth in the Operating Agreement and of the continuing
mutual interests of the Partners in the success of DTP and for other good and valuable
consideration, the receipt, sufficiency and adequacy of which is hereby acknowledged, the parties,
in accordance with paragraph 6.3 of the Operating Agreement, hereby agree as follows:

1. The first paragraph of Article D of the Operating Agreement is hereby amended so as to
read, in its entirety, as follows:

“A Deferred Compensation Plan is hereby instituted for all Partners of DTP, provided, however, that
with respect to each Partner who joins DTP after February 28, 1995, such Partner shall not
participate in the Deferred Compensation Plan unless such Partner elects to do so by notice in
writing to DTP and DTP approves in its sole discretion such election. For purposes hereof, “Base
Compensation” shall mean the base compensation established for a Partner for a particular year
pursuant to the procedures set forth in Article C hereof. The amount payable to a Partner during
the fiscal year shall be the equivalent, at normal payroll intervals, of his Base Compensation less
the percentage thereof constituting the “Deferred Credit,” as set forth below; the balance of Base
Compensation shall be accrued as a liability by DTP and charged against its earnings but shall not
be paid to the Partner, nor funded in any way, except as provided in this Article D.”

2. Section E. 1.(a) of the Operating Agreement is hereby amended, so as to read, in its
entirety, as follows:

	 	“(a)	 	The Partners other than the departing Partner (the “Remaining Partners”) shall have the
exclusive right to accept the offer and to purchase all (but not less than all) of the offered
Stock. The offer may be accepted by all or by fewer than all of the Remaining Partners, pro
rata (based on their respective holdings of Stock) or
non-pro rata, but it may not be
accepted unless at least a majority of Remaining Partners have agreed that all or any of the
Remaining Partners shall be permitted to purchase the offered Stock; the
Remaining Partners shall vote on the matter within

-1-

 

	 	 	 	five (5) days of the date of the notice from the CEO informing them of their right to purchase the
offered Stock. If the Remaining Partners so determine that all or any of the Remaining Partners
shall be permitted to purchase the offered Stock, then such Stock shall be offered to the Remaining
Partners in the following manner:

	 	(i)	 	Within five (5) days of the vote of the Remaining Partners, any Remaining Partners
desiring to purchase any of the offered Stock shall notify the CEO of the number of shares he or
she has elected to purchase and the CEO shall promptly notify all of the Partners of such
elections.
	 
	 	(ii)	 	If greater than all of the offered Stock is subscribed for, then each

Remaining Partner who subscribed for shares may only purchase his or
her pro rata share of
the offered Stock based on the then current holdings of each such Remaining Partner, or as
otherwise agreed upon by such Partners.
	 
	 	(iii)	 	If less than all of the offered Stock is subscribed for, then each Remaining Partner who
subscribed for shares, may purchase his or her pro rata share of the unsubscribed shares
based on the then current holdings of each such Remaining Partner, or as otherwise agreed upon by
such Partners.
	 
	 	(iv)	 	If all of the offered Stock is not subscribed for, then the Remaining
Partners shall be deemed to have declined to purchase the offered Stock. If all of the offered
Stock is subscribed for, then at least a majority of the Remaining Partners must approve who the
purchasers shall be and the allocation of the offered Stock among them and notify the CEO of the
same within the appropriate time period for the CEO to respond to the offering Partner. In the
event the approval required by the preceding sentence is not obtained, then the Remaining Partners
shall be deemed to have declined to purchase the offered Stock.

For purposes of this Section, each Partner who owns any options to purchase Stock shall be deemed
to own that number of shares that would be issuable upon the exercise of the options, without
consideration to vesting. To accept, the CEO must deliver to the offering Partner, the Company
and the Investors, on behalf of the purchasing Partners, within twenty (20) days after the delivery
of the notice to the Remaining Partners required under Section E. 1 above, a written notice of
acceptance indicating that the purchase has been approved by at least a majority of the Remaining
Partners, who the purchasers shall be and the allocation of the offered Stock among the
purchasers.”

3. Section F.3.(c) of the Operating Agreement is hereby amended, so as to read, in its
entirety, as follows:

-2-

 

	 	“(c)	 	The Other Partners shall have the exclusive first right to accept the offer and to
purchase all (but not less than all) of the Offered Securities. The offer may be accepted by all or
fewer than all of the Other Partners, pro rata (based on their respective holdings of
Stock) or non-pro rata, but it may not be accepted unless at least a majority of the Other
Partners have agreed that all or any of the Other Partners shall be permitted to purchase the
Offered Securities; the Other Partners shall vote on the matter within five (5) days of the date of
the notice from the CEO informing them of their right to purchase the Offered Securities. If the
Other Partners so determine that all or any of the Other Partners shall be permitted to purchase
the Offered Securities, then such shares shall be offered to such Partners in the following manner:

	 	(i)	 	Within five (5) days of the vote of the Other Partners, any of the Other
Partners desiring to purchase any of the Offered Securities shall notify the CEO of the number of
shares he or she has elected to purchase and the CEO shall promptly notify all of the Other
Partners of such elections.
	 
	 	(ii)	 	If greater than all of the Offered Securities is subscribed for, then each
Other Partner who subscribed for shares may only purchase his or her pro rata share of the
Offered Securities based on the then current holdings of each such Other Partners, or as otherwise
agreed upon by such Partners.
	 
	 	(iii)	 	If less than all of the Offered Securities is subscribed for, then each Other Partner who
subscribed for shares, may purchase his or her pro rata share of the unsubscribed shares
based on the then current holdings of each such Other Partner, or as otherwise agreed upon by such
Partners
	 
	 	(iv)	 	If all of the Offered Securities are not subscribed for, then the Other Partners shall be
deemed to have declined to purchase the Offered Securities. In the event that all of the Offered
Securities are subscribed for, then at least a majority of the Other Partners must approve who the
purchasers shall be and the allocation of the Offered Securities among them and notify the CEO of
the same within the appropriate time period for the CEO to respond to the Prospective Transferor.
In the event the approval required by the preceding sentence is not obtained, then the other
Partners shall be deemed to have declined to purchase the Offered Securities.

In the case of Partners who own options to purchase Stock, for purpose of determining such
Partners’ rights to participate pro rata with the Other Partners, each such Partner shall
be deemed to own that number of shares that would be issuable upon the exercise of the options
without consideration to vesting. To accept, the CEO must deliver to the Prospective Transferor,
the Company and the Investors, on behalf of the purchasing Partners, within twenty (20) days after
the delivery of the notice to the Other Partners

-3-

 

required under Section F.3(a) hereof, a written notice of acceptance indicating that the
purchase has been approved by at least a majority of the Other Partners, who the purchasers shall
be and the allocation of the Offered Securities among them.”

     This Amendment may be signed in any number of counterparts, each of which shall be deemed an
original and all of which together shall be deemed one and the same agreement.

     IN WITNESS WHEREOF, the parties have executed this Third Amendment to Diamond Technology Partners,
Inc. Partners’ Operating Agreement on the date first written above.

	 	 	 	 	 
	 	 	DIAMOND TECHNOLOGY PARTNERS, INC
	PROXY HOLDER:
	 	 	 	 
	 
	 	 	 	 
	/s/ Melvyn E. Bergstein
	 	By: 	 	 
	 
	 	 	 
	Melvyn E. Bergstein
	 	 	 	 
	 
	 	 	 	 
	PARTNERS:
	 	 	 	 
	 
	 	 	 	 
	/s/ Karl E. Bupp	 	 
	 	 	 
	Karl E. Bupp	 	 
	 
	 	 	 	 

-4-

 

EMPLOYMENT AGREEMENT

     Diamond
Technology Partners, Inc. (“Diamond Technology”) and Adam
J. Gutstein (“Employee”) enter into
this Employment Agreement (“Agreement”) dated March 16, 1994 (the “Effective Date”).

     In consideration of the agreements and covenants contained in the Agreement, Diamond
Technology and Employee agree as follows:

     1. Employment Duties. Diamond Technology shall employ Employee as an officer of
Diamond Technology and be identified within the organization as a “Partner.” Employee shall have
such responsibilities, duties and authority, consistent with those of an executive employee, as may
be assigned to him/her by Diamond Technology’s management, officers and partners (“Management”) and
agrees to perform such duties as Diamond Technology may from time-to-time request. In addition,
Employee shall, at the direction of Management, participate in the administration and execution of
Diamond Technology’s policies, business affairs, and operations. Employee shall perform
faithfully the duties assigned to him/her and shall devote his/her full and undivided time and
attention and his/her best efforts to the business of Diamond Technology.

     2. Salary. As compensation for Employee’s services, Diamond Technology shall initially
credit to Employee a level of base compensation at the annual rate listed in Exhibit A to this
Agreement: a portion of the Employee’s base compensation will be paid to him/her at Diamond
Technology’s regular executive payroll intervals, and the balance will be deferred and the payment
thereof will be subject to various qualifications and conditions as set forth in the Diamond
Technology’s Partners’ Operating Agreement dated March 22, 1994 (“the Partners’ Operating
Agreement”). Employee’s base compensation shall be subject to annual review and may, in accordance
with the Partners’ Operating Agreement be adjusted at the time of such reviews or at any other time
or times according to Employee’s responsibilities, capabilities and performance.

     3. Bonus. Diamond Technology may elect to pay annual bonuses. It is presently
contemplated that Partners subject to a deferral of a portion of salary will not be eligible to
earn bonuses. The decision to pay any bonuses and the actual payment of such bonuses, if any, shall
be at the sole discretion of Diamond Technology.

     4. Employee Benefits. During the period of his/her employment, Employee shall be
entitled to participate in such employee benefit plans, including group pension, life and health
insurance and other medical benefits, and shall receive such other fringe benefits, as Diamond
Technology may make available generally to Partners.

 

 

     5. Business Expenses. Diamond Technology shall reimburse Employee
for all reasonable and necessary business expenses incurred by Employee in performing his/her
duties. Employee shall provide Diamond Technology with supporting documentation sufficient to
satisfy reporting requirements of the Internal Revenue Service and Diamond Technology. Diamond
Technology’s determination as to reasonableness and necessity shall be final.

     6. Non-Disclosure and Non-Competition. Employee acknowledges that the successful
marketing and development of Diamond Technology’s professional services and products requires
substantial time and expense. Such efforts utilize and generate valuable confidential and
proprietary information, of which Employee will obtain knowledge. As used herein, “Confidential
Information” means any information of Diamond Technology that Diamond Technology considers to be
proprietary and treats as confidential or information of any third party that Diamond Technology is
under an obligation to keep confidential, including, but not limited to, the following: inventions,
products, business strategies, plans, proposals, deliverables, prospect and customer lists,
methodologies, training materials, computer software, documents, models, source code, designs, know
how, techniques, systems, processes, works of authorship, projects, plans, proposals and flow
charts, and listings of any or all of the foregoing. All Confidential Information is and shall at
all times remain the exclusive property of Diamond Technology. Confidential Information does not
include: (i) information that at the time of disclosure is in the public domain through no fault of
Employee’s; (ii) information received from a third party outside of Diamond Technology that was
disclosed without a breach of any confidentiality obligation; (iii) information approved for
release by written authorization of Diamond Technology; or (iv) information that may be required by
law or an order of any court, agency or proceeding to be disclosed. Employee agrees to undertake
the following obligations, which he/she acknowledges to be reasonably designed to protect Diamond
Technology’s legitimate business interests without unnecessarily or unreasonably restricting
Employee’s post-employment opportunities:

          (a) Employee agrees that he/she will not at any time, whether during or after the cessation of
his/her employment, reveal to any person or any entity any of the Confidential Information, except,
and only to the extent, as may be required in the ordinary course of performing Employee’s assigned
duties as an employee of Diamond Technology, and Employee agrees to keep secret, and take all
necessary precautions against disclosure of, all Confidential Information and all matters entrusted
to him/her and not to use or attempt to use any Confidential Information in any manner that may
cause injury or loss, or may be calculated to cause injury or loss, whether directly or indirectly,
to the Company or its clients;

          (b) Employee agrees that during his/her employment he/she shall not take, use or permit to be
used any notes, memoranda, reports, lists, records, drawings, sketches, specifications, software
programs, data, documentation or other materials of any nature relating to any matter within the
scope of the business of Diamond Technology or

-2-

 

concerning any of its dealings or affairs otherwise than for the benefit of Diamond Technology;

          (c) Upon cessation of his/her employment relationship with Diamond Technology, Employee shall
deliver to Diamond Technology all Confidential Information and other materials in his/her
possession or delivered to him/her by Diamond Technology, including but not limited to computer
programs, files, notes, records, memoranda, reports, lists, drawings, sketches, specifications,
data, charts, and other documents, materials and things (“Materials”), whether or not containing
Confidential Information, prepared by Employee in connection with his/her employment by Diamond
Technology, it being agreed that all Materials shall be and remain the sole and exclusive property
of Diamond Technology;

          (d) Without limiting the obligations of paragraph 6(c), Employee agrees that while Employee is
employed by Diamond Technology and for a period of eighteen months following cessation of his/her
employment relationship with Diamond Technology, he/she will not, whether alone or as owner,
partner, officer, director, consultant, agent, employee independent contractor, or stockholder of
any firm, corporation or other commercial enterprise, directly or indirectly solicit engagements
with: (i) any client of Diamond Technology for whom Diamond Technology performed services within
the one year period preceding his/her cessation of employment, or (ii) any current client prospect
of Diamond Technology for whom Employee directly or indirectly assisted in the preparation or
submission of a proposal made by Diamond Technology to such client prospect during the one year
period preceding his/her cessation of employment, unless Diamond Technology acknowledges in writing
its intent not to further pursue such client prospect; Employee shall, however, be permitted to own
securities of any public company not in excess of five percent (5%) of any class of such securities
and to own stock, partnership interests or other securities of any non-public entity not in excess
of five percent (5%) of any class of such securities, and such ownership shall not be considered to
be in competition with Diamond Technology;

          (e) While employed and during the eighteen month period immediately following cessation of
Employee’s employment relationship with Diamond Technology for any reason, Employee shall not,
directly or indirectly, solicit any employee of Diamond Technology to work for any person,
partnership or entity other than Diamond Technology, or engage in any activity that would cause any
employee to violate any agreement with Diamond Technology, or dissuade, or attempt to dissuade, any
such employee from faithfully discharging such employee’s contractual and fiduciary obligations to
serve Diamond Technology’s interests with undivided loyalty.

     7. Remedies. Employee recognizes and agrees that a breach of any or all of the
provisions of paragraph 6 will constitute immediate and irreparable harm to Diamond Technology for
which damages cannot be readily calculated and for which damages are an inadequate remedy.
Accordingly, Employee acknowledges that in addition to any and all

-3-

 

remedies at law, Diamond Technology shall be entitled to specific performance or injunctive or
other equitable relief to prevent the violation of Employee’s obligations under this Agreement.

     8. Intellectual Property. During the employment period, Employee shall disclose
immediately to Diamond Technology all ideas, inventions and business plans that he/she makes,
conceives, discovers or develops during the course of his/her employment with Diamond Technology,
including but not limited to any inventions, modifications, discoveries, developments,
improvements, computer programs, processes, products or procedures (whether or not protectable upon
application by copyright, patent trademark, trade secret or other proprietary rights) (“Work
Product”) that: (i) relate to the business of Diamond Technology or any customer or supplier to
Diamond Technology or any of the products or services being developed, manufactured, sold or
otherwise provided by Diamond Technology or that may be used in relation therewith; or (ii) result
from tasks assigned to Employee by Diamond Technology; or (iii) result from the use of the premises
or personal property (whether tangible or intangible) owned, leased or contracted for by Diamond
Technology. Employee agrees that any Work Product shall be the property of Diamond Technology and,
if subject to copyright, shall be considered a “work made for hire” within the meaning of the
Copyright Act of 1976, as amended (the “Act”). If and to the extent that any such Work Product is
found as a matter of law not to be a “work made for hire” within the meaning of the Act, Employee
expressly assigns to Diamond Technology all right, title and interest in and to the Work Product,
and all copies thereof, and the copyright, patent, trademark, trade secret and all their
proprietary rights in the Work Product, without further consideration, free from any claim, lien
for balance due or rights of retention thereto on the part of Employee.

     Employee agrees that upon disclosure of Work Product to Diamond Technology, Employee will,
during his/her employment and at any time thereafter, at the request and cost of Diamond
Technology, execute all such documents and perform all such acts as Diamond Technology or its duly
authorized agents may reasonably require: (i) to apply for, obtain and vest in the name of Diamond
Technology alone (unless Diamond Technology otherwise directs) letters patent, copyrights or other
analogous protection in any country throughout the world, and when so obtained or vested to renew
and restore the same; and (ii) to defend any opposition proceedings in respect of such
applications and any opposition proceedings or petitions or applications for revocation of such
letters patent, copyright or other analogous protection.

     In the event that Diamond Technology is unable, after reasonable effort, to secure Employee’s
signature on any letters patent, copyright or other analogous protection relating to Work Product,
whether because of Employee’s physical or mental incapacity or for any other reason whatsoever,
Employee hereby irrevocably designates and appoints Diamond Technology and its duly authorized
officers and agents as his/her agent and attorney-in-fact, to act for and on his/her behalf to
execute and file any such application or applications and to do all other lawfully permitted acts
to further the prosecution and

-4-

 

issuance of letters patent, copyright and other analogous protection with the same legal force and
effect as if personally executed by Employee.

     9. Costs and Expenses of Enforcement. Employee agrees to reimburse Diamond Technology
for all costs and expenses, including reasonable attorneys’ fees, incurred by Diamond Technology in
connection with the enforcement of its rights under any provision of this Agreement; provided,
however, that Diamond Technology agrees to seek reimbursement only for matters, including acts or
omissions (whether direct or indirect), done knowingly, willfully or intentionally in disregard of
Employee’s obligations under this Agreement.

     10. Indemnity. Provided that Employee performs all of his duties and obligations
under this Agreement, Diamond Technology agrees to defend, indemnify and hold Employee harmless
from and against all damages, liability and expenses, including reasonable attorney’s fees, arising
as a result of claims brought against Employee by his/her latest employer preceding his/her
employment with Diamond Technology (“Previous Employer”): (i) alleging any breach, for the benefit
of Diamond Technology, of Employee’s obligations to the Previous Employer with respect to
Confidential Information of the Previous Employer; (ii) based upon Diamond Technology’s hiring of
Employee; or (iii) that are deemed by Diamond Technology, in its sole discretion, to be frivolous
or harassing. Notwithstanding the foregoing, Diamond Technology shall have no indemnification
obligations under this Agreement or otherwise in respect of any willful or intentional breach of
the Employee’s obligations to the Previous Employer with respect to Confidential Information of the
Previous Employer.

     11. Assignment. Employee acknowledges that the services to be rendered pursuant to
this Agreement are unique and personal. Accordingly, Employee may not assign any of his/her rights
or delegate any of his/her duties or obligations under this Agreement. Diamond Technology may
assign its this Agreement to its successors or assigns, or to a subsidiary or to a purchaser or
transferee of all, or substantially all, of the assets of Diamond Technology, and all covenants and
agreements of Employee under this Agreement shall inure to the benefit of and be enforceable by
such successors, assigns, subsidiaries, purchasers or transferees.

     12. Notices. All notices hereunder shall be in writing. Notices intended for Diamond
Technology shall be sent by registered or certified mail addressed to Diamond Technology at 444
North Michigan Avenue, Suite 3600, Chicago, Illinois 60611, or its current principal office, and
notices intended for Employee shall be either delivered personally to him/her or sent by registered
or certified mail addressed to his/her last known address.

     13. Entire Agreement. This Agreement constitutes the entire agreement between Diamond
Technology and Employee with respect to the subject matter hereof and supersedes any and all other
prior or contemporary oral or written representations or

-5-

 

agreements between the parties regarding such subject matter, however, it is mutually acknowledged
that the parties may enter into a Partners’ Operating Agreement governing the relationships among
the Partners, including certain matters relating to compensation and to the payment of the
deferred portion of base compensation. Subsequent to the Effective Date, this Agreement
specifically supersedes any prior non-disclosure agreement executed by Employee; provided,
however, that the terms and conditions of any such prior agreement remain in full force and effect
for the period between execution of such agreement and the Effective Date of this Agreement.
Neither Employee nor Diamond Technology may modify this Agreement by oral agreements, promises or
representations. The parties may modify this Agreement only by a written instrument executed by
both parties.

     14. Applicable Law. This Agreement shall be governed by, and construed in accordance
with, the laws of the State of Illinois. Diamond Technology and Employee consent to jurisdiction
and venue only in the Circuit Court of Cook County, Illinois, or the Federal District Court for the
Northern District of Illinois.

     15. Severability. Employee acknowledges that the type and periods of restriction
imposed in the provisions of this Agreement are fair and reasonable and are reasonably required for
the protection of Diamond Technology and the goodwill associated with the business of Diamond
Technology. Each provision herein shall be treated as a separate and independent clause, and the
unenforceability of any one clause shall in no way impair the enforceability of any of the other
clauses herein. If any provision contained in this Agreement shall for any reason be held to be
prohibited by, or invalid under, applicable law, or to be excessively broad as to scope, activity
or subject so as to be unenforceable at law, such provision shall be construed to be ineffective
only to the extent of such prohibition without invalidating the remainder of such provision or the
remaining provisions of this Agreement or, in the case of a provision found to be excessively
broad, by limiting and reducing such provision so as to permit such provision to be enforceable to
the maximum extent compatible with the applicable law as it shall then appear.

     16. Waiver. The failure of Diamond Technology to exercise any right hereunder shall
not operate or be construed as a waiver of any right hereunder. Employee’s obligations under this
Agreement shall survive the cessation of employment regardless of the manner of such termination
and shall be binding on Employee’s heirs, executors, administrators and legal representatives.

     17. No Term of Employment. As revised, nothing in this Agreement shall be deemed to
create any term of employment, it being expressly understood and agreed that Employee’s employment
is at will and that either party may terminate such employment at any time.

-6-

 

     18. Acknowledgment. Employee acknowledges that he/she has read and
understood, and accepts, the provisions of this Agreement.

	 	 	 	 	 	 	 
	 	 	EMPLOYEE	 	 
	 

	 	 	 	 	 	 
	 	 	/s/ Adam J. Gutstein	 	 
	 	 	 	 	 
	 	 	Adam J. Gutstein	 	 
	 
	 	 	 	 	 	 
	 	 	DIAMOND TECHNOLOGY PARTNERS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Melvyn E. Bergstein	 	 
	 

	 	 	 	Melvyn E. Bergstein 	 	 

-7-

 

EXHIBIT A

TO

EMPLOYMENT AGREEMENT

     BASE
SALARY: $250,000; subject to paragraph D of the Partners’ Operating Agreement
incorporated herein by this reference.

-8-

 

AMENDMENT NUMBER TWO TO EMPLOYMENT AGREEMENT

BY AND BETWEEN

DIAMOND TECHNOLOGY PARTNERS, INC.

AND EMPLOYEE

     This is an amendment (“Amendment”), dated as of November 30, 1994, to a certain Employment
Agreement dated March 16, 1994, between Diamond Technology Partners, Inc. (“Diamond Technology”)
and Adam J. Gutstein (“Employee”), as previously amended (the “Employment Agreement”).

     In consideration of the agreements and covenants contained in the Employment Agreement and
this Amendment and for other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, Diamond Technology and Employee agree as follows:

     1. The Employment Agreement is hereby amended by adding thereto a new paragraph 18,
which shall read as follows:

     “18. Charitable Contributions.

          (a) Effective April 1, 1995, Employee will contribute in each calendar year during
his/her employment with Diamond Technology, at least two percent (2%) of Employee’s gross
base compensation in effect for the then current calendar year, to charities approved by the
Operations Committee (as defined in the Partners’ Operating Agreement). All such
contributions will be made pursuant to policies established from time to time by the
Operations Committee. Employee authorizes Diamond Technology to make any deductions,
including, without limitation, periodic deductions, from base compensation payable to
Employee, in accordance with such policies.

          (b) The Operations Committee will approve charities on an ongoing basis from time to
time and will publish the list of approved charities. Employee may request approval for
charities not already on the list of approved charities from the Operations Committee no
later than thirty (30) days prior to the end of any calendar year for contributions made
during that year.

          (c) Diamond Technology will match, up to two percent (2%) of Employee’s gross base
compensation, the amount of any contributions made by, or directed to be made on behalf of,
the Employee to any colleges or universities where Diamond Technology recruits or intends to
recruit for new employees. The Operations Committee will maintain and publish a list of such
colleges and universities. The Operations Committee may from time to time limit or eliminate
Diamond Technology’s matching contribution obligation if it determines that to do so would
be in the best business interests of Diamond Technology.

 

 

     2. Acknowledgement. Employee acknowledges that he/she has read and
understood, and accepts, the provisions of this Amendment.

     IN WITNESS WHEREOF, the undersigned have executed this Amendment Number Two to Employment
Agreement by and between Diamond Technology Partners, Inc. and Employee as of the date first
written above.

	 	 	 	 	 	 	 
	 	 	EMPLOYEE	 	 
	 

	 	 	 	 	 	 
	 	 	/s/ Adam J. Gutstein	 	 
	 	 	 	 	 
	 	 	Adam J. Gutstein	 	 
	 
	 	 	 	 	 	 
	 	 	DIAMOND TECHNOLOGY PARTNERS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Melvyn E. Bergstein	 	 
	 

	 	 	 	Melvyn E. Bergstein 	 	 

-2-

 

AMENDMENT TO EMPLOYMENT AGREEMENT

BY AND BETWEEN

DIAMOND TECHNOLOGY PARTNERS, INC.

AND EMPLOYEE

     Diamond
Technology Partners, Inc. (“Diamond Technology”) and Adam
J. Gutstein (“Employee”) enter
into this Amendment to Employment Agreement (“Amendment”).

     In consideration of the agreements and covenants contained in the Employment Agreement and
this Amendment, and to effect Diamond Technology’s indemnification of Employee as herein set forth,
Diamond Technology and Employee agree as follows:

	 	1.	 	Paragraph 10 of the Agreement, entitled “Indemnity” is hereby stricken
and the following language is hereby substituted in its stead:
	 
	 	 	 	Indemnity. Provided that Employee performs all of his duties and
obligations under this Agreement, Diamond Technology agrees to defend, indemnify and
hold Employee harmless from and against all damages, liability and expenses,
including reasonable attorney’s fees, arising as a result of: (a) claims brought
against Employee by his/her latest Employer preceding his/her employment with
Diamond Technology (“Previous Employer”) (i) alleging any breach, for the benefit of
Diamond Technology, of Employee’s obligations to the Previous Employer with respect
to Confidential Information of the Previous Employer; (ii) based upon Diamond
Technology’s hiring of Employee; or (iii) that are deemed by Diamond Technology, in
its sole discretion, to be frivolous or harassing; or (b) claims brought by any
client of Diamond Technology alleging the breach of any duty owed by Diamond
Technology or Employee to such client. Notwithstanding the foregoing, Diamond
Technology shall have no indemnification obligations: (x) under clause (a) of the
preceding sentence of this Paragraph 10, or otherwise, in respect of any willful or
intentional misconduct or breach of the Employee’s obligations to the Previous
Employer with respect to Confidential Information of the Previous Employer; or (y)
under clause (b) of the preceding sentence of this Paragraph 10, or otherwise, in
respect of any willful or intentional misconduct or breach by the Employee of the
Employee’s obligations to Diamond Technology; or (z) arising from or relating to any
Employee action that is outside the scope of his/her employment.

 

 

     2. Acknowledgement. Employee acknowledges that he/she has read and
understood, and accepts, the provisions of this Amendment.

Dated:

	 	 	 	 	 	 	 
	 	 	EMPLOYEE	 	 
	 

	 	 	 	 	 	 
	 	 	/s/ Adam J. Gutstein
	 	 
	 	 	 	 	 
	 	 	Adam J. Gutstein
	 	 
	 
	 	 	 	 	 	 
	 	 	DIAMOND TECHNOLOGY PARTNERS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Melvyn E. Bergstein	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Melvyn E. Bergstein	 	 

 

 

			
	
	 	DiamondCluster International North America, Inc.

Partner Employment Agreement

This Employment Agreement is made by and between DiamondCluster International North America,
Inc., an Illinois corporation (“Employer”), and Jay D. Norman (“Employee”) as of the last date on
the signature page (the “Effective Date”). In consideration of the agreements and covenants
contained in the Agreement, Employer and Employee agree as follows:

	1	 	Incorporation of Offer Letter

The terms and conditions of the Offer Letter to Employee dated January 2nd, 2003 are
incorporated herein by this reference as though set forth in full herein.

	2	 	Employment Duties
	 
	2.1.	 	Commencing as of the Effective Date, or another mutually agreed date, Employer agrees to
employ Employee, and Employee agrees to be employed, as a “Partner” with the responsibilities,
duties and authority of an executive employee together with such other duties and
responsibilities assigned by Employer’s management (“Management”). At the direction of
Management Employee will also participate in the administration and execution of the policies,
business affairs and operations of Employer. Employee will perform faithfully these duties and
responsibilities and devote undivided time and attention to the business of Employer.
	 
	2.2	 	As of the Effective Date, Employee will be elected a vice president of each of Employer and
of its sole stockholder, DiamondCluster International, Inc., a Delaware corporation.
	 
	3	 	Business Expenses
	 
	3.1	 	Employer will reimburse Employee for all reasonable and necessary (as determined in
Employer’s sole judgment) business expenses incurred in the performance of Employee’s duties
provided such expenses are (i) within the parameters of the Employer’s Expense Reimbursement
Policy as in effect from time to time, (ii) purchased using the Employee’s corporate credit
card if an airfare, hotel or car rental expense, and (iii) supported by documentation
sufficient to satisfy Employer’s and the Internal Revenue Service’s reporting requirements.
	 
	3.2	 	Employer shall have the right to deduct from future amounts due Employee (including
Employee’s base compensation) any amount reimbursed Employee which Employer’s internal audit
function determines is not in compliance with Employer’s Policy or supported by sufficient
documentation.
	 
	4	 	Non-Disclosure and Non-Competition
	 
	4.1	 	Employee acknowledges that the successful marketing and development of Employer’s
professional services and products requires substantial time and expense. Such efforts
utilize and generate valuable confidential and proprietary information, of which Employee will
obtain knowledge. “Confidential Information” means any information that Employer considers to
be proprietary and treats as confidential, including third-party information that Employer is
obligated to keep confidential, and includes without limitation: inventions, products,
business strategies, plans, proposals, deliverables, prospect and

 

 

	 	 	client lists, methodologies, training materials, computer software, documents, models,
source code, designs, know how, techniques, systems, processes, works of authorship,
projects, plans, and flow charts, and listings of any or all of the foregoing. All
Confidential Information is and will at all times remain the exclusive property of Employer.
Confidential Information does not include: (i) information that at the time of disclosure
is in the public domain through no fault of Employee’s; (ii) information disclosed by a
third party without breach of a confidentiality obligation; (iii) information approved for
release by written authorization of Employer; or (iv) information required by law or an
order of any court, agency or proceeding to be disclosed.
	 
	4.2	 	Employee agrees to undertake the following obligations, which Employee acknowledges to be
reasonably designed to protect Employer’s legitimate business interests without unnecessarily
or unreasonably restricting Employee’s post-employment opportunities.

	 	4.2.1	 	Employee will not at any time during or following termination of employment
with Employer disclose Confidential Information to any corporation, partnership, trust
or natural person (collectively “person”) except to the extent required in the ordinary
course of performing Employee’s duties and responsibilities. Employee will keep secret
and take all necessary precautions against disclosure of Confidential Information and
will not use or attempt to use Confidential Information in any manner that may cause or
be calculated to cause injury or loss directly or indirectly to Employer.
	 
	 	4.2.2	 	Employee will not take or use, or permit to be taken or used, any notes,
memoranda, reports, lists, records, drawings, sketches, specifications, software
programs, data, documentation or other materials of any nature relating to any matter
within the scope of Employer’s business or concerning any of its dealings or affairs
otherwise than for the benefit of Employer.
	 
	 	4.2.3	 	Upon termination of Employee’s employment for any reason, Employee will
deliver to Employer all Confidential Information and other materials then in Employee’s
possession including without limitation computer programs, files, notes, records,
memoranda, reports, lists, drawings, sketches, specifications, data, charts and all
other documents, materials and things (“Materials”), whether or not containing
Confidential Information, provided to or prepared by Employee in connection with
Employee’s employment by Employer, it being agreed that all Materials will be and
remain the sole and exclusive property of Employer.
	 
	 	4.2.4	 	Without limiting Employee’s obligations pursuant to Section 4.2.3, Employee
agrees that while employed by Employer and for a period of eighteen months following
termination of employment, Employee will not, whether alone or as owner, partner,
officer, director, consultant, agent, employee independent contractor or stockholder of
any firm, corporation or other commercial enterprise, directly or indirectly solicit
engagements with (i) any client of Employer for whom Employer performed services within
the one year period preceding termination of employment, or (ii) any current client
prospect of Employer for whom Employee directly or indirectly assisted in the
preparation or submission of a proposal made by Employer to such client prospect during
the one year period preceding termination of employment, unless Employer acknowledges
in writing its intent not to pursue further such client prospect.

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	 	4.2.5	 	Ownership by Employee of up to and including 5% of any class of securities of
any public or non-public person will not be considered to be in competition with
Employer.
	 
	 	4.2.6	 	During Employee’s employment with Employer and for a period of 18 months
thereafter, Employee will not, directly or indirectly, solicit or hire any employee of
Employer to work for any person other than Employer or engage in any activity that
would cause any employee to violate any agreement with Employer, or dissuade, or
attempt to dissuade, any such employee from faithfully discharging such employee’s
contractual and fiduciary obligations to serve Employer’s interests with undivided
loyalty.

	4.3	 	At no time during Employee’s employment with Employer will Employee directly or indirectly
disclose or use the confidential or proprietary information of a third party without such
party’s prior written consent. In particular, Employee will not:

	 	4.3.1	 	Disclose or use any confidential or proprietary information of his or her
prior employer(s) or such employers’ clients or customers without prior written
consent.

	 	4.3.2	 	Use any illegal means to acquire a third-party’s confidential or proprietary
information.
	 
	 	For purposes of this Section 4, the term “Employer” will include all affiliates of Employer
including its shareholder(s), subsidiaries and any other entities that control, are
controlled by or are under common control of Employer.

	5	 	Remedies

Employee recognizes and agrees that a breach of any or all of the provisions of Section 4 will
constitute immediate and irreparable harm to Employer for which damages cannot be readily
calculated and for which damages are an inadequate remedy. Accordingly, Employee acknowledges that
in addition to any and all remedies at law, Employer will be entitled to specific performance or
injunctive or other equitable relief to prevent the violation of Employee’s obligations under this
Agreement.

	6	 	Intellectual Property
	 
	6.1	 	Employee will disclose immediately to Employer all ideas, inventions and business plans made,
conceived, discovered or developed during the course of Employee’s employment with Employer
including without limitation all inventions, modifications, discoveries, developments,
improvements, computer programs, processes, products or procedures whether or not protectable
upon application by copyright, patent, trademark, trade secret or other proprietary rights
(“Work Product”) that:

	 	6.1.1	 	relate to the business of Employer or any of its clients or suppliers or any
product or service being developed, manufactured, sold or otherwise provided by
Employer or that may be used in relation therewith; or

	 	6.1.2	 	result from tasks assigned to Employee by Employer; or

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	 	6.1.3	 	result from the use of the premises or personal property (whether tangible or
intangible) owned, leased or contracted for by Employer.
	 
	 	Employee agrees that Work Product will be the property of Employer and, if subject to
copyright, will be considered a “work made for hire” within the meaning of the Copyright Act
of 1976, as amended (the “Act”). If and to the extent that any Work Product is found as a
matter of law not to be a “work made for hire” within the meaning of the Act, Employee
expressly assigns to Employer all right, title and interest in and to the Work Product and
all copies thereof, together with all copyright, patent, trademark, trade secret and other
proprietary rights in the Work Product, without further consideration, free from any claim,
lien for balance due or rights of retention thereto on the part of Employee.

	6.2	 	In accordance with the Illinois Employee Patent Act, Employer hereby notifies Employee that
the provisions of Section 6.1 do not apply to any inventions for which no equipment, supplies,
facility or trade secret information of Employer was used and which was developed entirely on
the Employee’s own time unless: (i) the invention relates to Employer’s business or its actual
or demonstrably anticipated research or development, or (ii) the invention results from any
work performed by the Employee for Employer.

	6.3	 	Employee agrees that Work Product will be the property of Employer and, if subject to
copyright, will be considered a “work made for hire” within the meaning of the Copyright Act
of 1976, as amended (the “Act”). If and to the extent that any Work Product is found as a
matter of law not to be a “work made for hire” within the meaning of the Act, Employee
expressly assigns to Employer all right, title and interest in and to the Work Product and all
copies thereof, together with all copyright, patent, trademark, trade secret and other
proprietary rights in the Work Product, without further consideration, free from any claim,
lien for balance due or rights of retention thereto on the part of Employee.

	6.4	 	In the event that Employer is unable, after reasonable effort, to secure Employee’s signature
on any letters patent, copyright or other analogous protection relating to Work Product,
whether because of Employee’s physical or mental incapacity or for any other reason
whatsoever, Employee hereby irrevocably designates and appoints Employer and its duly
authorized officers and agents as Employee’s agent and attorney-in-fact to act for and on
Employee’s behalf to execute and file any such application or applications and to do all other
lawfully permitted acts to further the prosecution and issuance of letters patent, copyright
and other analogous protection with the same legal force and effect as if personally executed
by Employee.

	7	 	Employer’s Property

During the course of Employee’s employment, Employer will provide Employee with personal property
owned or leased by Employer including without limitation a laptop computer. Employee acknowledges
and agrees that (i) all such property is and will at all time remain the property of Employer, and
(ii) Employer shall have the right to deduct from any amounts due Employee (including Employee’s
base compensation) the then fair market value of any such property not promptly returned to
Employer upon termination of Employee’s employment for any reason.

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	8	 	Costs and Expenses of Enforcement

Employee will reimburse Employer for all costs and expenses (including reasonable attorneys’ fees)
incurred by Employer in connection with the enforcement of Employer’s rights under any provision of
this Agreement arising from or relating to Employee’s knowing, willful or intentional breach of
Employee’s obligations under this Agreement.

	9	 	Indemnity
	 
	9.1	 	Provided that Employee is not in breach of any duties or obligation under this Agreement,
Employer will indemnify, defend and hold Employee harmless from and against all damages,
liability and expenses (including reasonable attorney’s fees) arising as a result of

	 	9.1.1	 	claims brought by the employer by which Employee was employed immediately
preceding Employee’s employment by Employer (“Previous Employer”) (i) alleging any
breach, for the benefit of Employer, of Employee’s obligations to the Previous Employer
with respect to Confidential Information of the Previous Employer or (i) based upon
Employer’s employment of Employee; or
	 
	 	9.1.2	 	claims that are deemed by Employer (in its sole discretion) to be frivolous or
harassing; or
	 
	 	9.1.3	 	claims brought by any client of Employer alleging the breach of any duty owed
by Employer or Employee to such client.

	9.2	 	Notwithstanding the foregoing, Employer will have no indemnification obligation:

	 	9.2.1	 	under Section 9.1.1 arising from or relating to any willful or intentional
misconduct or breach of Employee’s obligation to the Previous Employer with respect to
Confidential Information of the Previous Employer; or
	 
	 	9.2.2	 	under Section 9.1.3 arising from or relating to Employee’s willful or
intentional misconduct or breach of Employee’s obligations to Employer; or
	 
	 	9.2.3	 	arising from or relating to any act of Employee outside the scope of
Employee’s employment.

	10	 	Assignment

Employee acknowledges that the services to be rendered pursuant to this Agreement are unique and
personal. Accordingly, Employee may not assign any rights or delegate any duties or obligations
under this Agreement. Employer may assign this Agreement to a successor, a shareholder,
subsidiary, purchaser or transferee of all, or substantially all, of the assets of Employer.
Following any such assignment, all covenants and agreements of Employee under this Agreement will
inure to the benefit of and be enforceable by such successors or assignee.

	11	 	Notices

All notices, demands and other communications which are required or may be given under this
Agreement must be in writing and will be deemed to have been duly given when delivered personally
or transmitted electronically by email or facsimile, receipt acknowledged, or in the

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case of documented overnight delivery service or registered or certified mail, return receipt
requested, delivery charge or postage prepaid, on the date shown on the receipt therefor and if to
Employer to:

DiamondCluster International North America, Inc.

Suite 3000 John Hancock Center

875 North Michigan Avenue

Chicago, Illinois 60611

Facsimile 312.255.6000

and if to Employee, to Employee last’s known address.

	12	 	Entire Agreement

	12.1	 	This Agreement constitutes the entire agreement between Employer and Employee with respect to
the subject matter hereof and supersedes any and all other prior or contemporary oral or
written representations or agreements.

	12.2	 	Notwithstanding the foregoing, the parties acknowledge and agree that the Partners’ Operating
Agreement governs the relationships among all employees of Employer designated as Partner,
including certain matters relating to compensation and to the payment of the deferred portion
of base compensation.

	12.3	 	No waiver or amendment of this Agreement shall be effective unless in writing and executed by
both parties. Employee’s obligations under this Agreement will survive termination of
employment for any reason and will be binding on Employee’s heirs, executors, administrators
and legal representatives.

	13	 	Applicable Law

This Agreement is governed by and construed in accordance with the laws of the State of Illinois.
Employer and Employee consent to jurisdiction and venue only in the Circuit Court of Cook County,
Illinois or the Federal District Court for the Northern District of Illinois.

	14	 	Severability

Employee acknowledges and agrees that:

	14.1	 	the type and periods of restriction imposed by the provisions of this Agreement are fair,
reasonable and reasonably required for the protection of Employer and the goodwill associated
with its business;

	14.2	 	each provision is a separate and independent clause, and the unenforceability of any one
clause will in no way impair the enforceability of any of the other clauses;

	14.3	 	if any provision contained in this Agreement is for any reason held to be prohibited by, or
invalid under, applicable law, or to be excessively broad as to scope, activity or subject so
as to be unenforceable at law, such provision will be construed to be ineffective only to the
extent of such prohibition without invalidating the remainder of such provision or the
remaining provisions of this Agreement or, in the case of a provision found to be excessively
broad, by limiting and reducing such provision so as to permit such
provision to be enforceable to the maximum extent compatible with the applicable law as it will then
appear.

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	15	 	No Term of Employment

Nothing in this Agreement creates any term of employment, it being expressly understood and agreed
that Employee’s employment is at will and that either party may terminate such employment at any
time.

	16	 	Charitable Contributions

	16.1	 	During each calendar year Employee will contribute not less than 2% of Employee’s gross base
compensation calendar year to charities approved by the Management Committee (as defined in
the Partners’ Operating Agreement). All such contributions will be made pursuant to policies
established from time to time by the Management Committee. Employee authorizes Employer to
make any deductions including without limitation periodic deductions from base compensation
payable to Employee in accordance with such policies.

	16.2	 	The Management Committee will publish a list of approved charities from time to time.
Employee may request approval of not-previously approved charities by notice to the Management
Committee received not less than 30 days prior to the end of the calendar year.

	16.3	 	Employer will match in an amount up to 2% of Employee’s gross base compensation the amount of
contributions made by or directed to be made on behalf of Employee to colleges or universities
at which Employer recruits or intends to recruit for new employees. The Management Committee
will publish a list of such colleges and universities. Notwithstanding the foregoing, in its
sole discretion Employer may limit or eliminate the matching contribution at any time.

	17	 	Acknowledgment

Employee acknowledges that he/she has read and understood, and accepts, the provisions of this
Agreement.

DiamondCluster International

North America, Inc.

	 	 	 	 	 
	By

	 	/s/ Melvyn E. Bergstein
	 	/s/ Jay D. Norman
	 

	 	 
	 	 
	Melvyn E. Bergstein	 	 
	Chairman and CEO	 	Jay D. Norman
	 
	 	 	 	 
	January 21st, 2003	 	Date 1/2/2003

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	 	DiamondCluster International North America, Inc.

Partner Employment Agreement

This Employment Agreement is made by and between DiamondCluster International North America,
Inc., an Illinois corporation (“Employer”), and William McClayton (“Employee”) as of the last date
on the signature page (the “Effective Date”). In consideration of the agreements and covenants
contained in the Agreement, Employer and Employee agree as follows:

	1	 	Incorporation of Offer Letter

The terms and conditions of the Offer Letter to Employee dated November 17th, 2000 are
incorporated herein by this reference as though set forth in full herein.

	2	 	Employment Duties

	2.1.	 	Commencing as of the Effective Date, or another mutually agreed date, Employer agrees to
employ Employee, and Employee agrees to be employed, as a “Partner” with the responsibilities,
duties and authority of an executive employee together with such other duties and
responsibilities assigned by Employer’s management (“Management”). At the direction of
Management Employee will also participate in the administration and execution of the policies,
business affairs and operations of Employer. Employee will perform faithfully these duties and
responsibilities and devote undivided time and attention to the business of Employer.

	2.2	 	As of the Effective Date, Employee will be elected a vice president of each of Employer and
of its sole stockholder, DiamondCluster International, Inc., a Delaware corporation.

	3	 	Business Expenses

	3.1	 	Employer will reimburse Employee for all reasonable and necessary (as determined in
Employer’s sole judgment) business expenses incurred in the performance of Employee’s duties
provided such expenses are (i) within the parameters of the Employer’s Expense Reimbursement
Policy as in effect from time to time, (ii) purchased using the Employee’s corporate credit
card if an airfare, hotel or car rental expense, and (iii) supported by documentation
sufficient to satisfy Employer’s and the Internal Revenue Service’s reporting requirements.

	3.2	 	Employer shall have the right to deduct from future amounts due Employee (including
Employee’s base compensation) any amount reimbursed Employee which Employer’s internal audit
function determines is not in compliance with Employer’s Policy or supported by sufficient
documentation.

	4	 	Non-Disclosure and Non-Competition

	4.1	 	Employee acknowledges that the successful marketing and development of Employer’s
professional services and products requires substantial time and expense. Such efforts
utilize and generate valuable confidential and proprietary information, of which Employee will
obtain knowledge. “Confidential Information” means any information that Employer considers to
be proprietary and treats as confidential, including third-party information that Employer is
obligated to keep confidential, and includes without limitation: inventions, products,
business strategies, plans, proposals, deliverables, prospect and

 

 

	 	 	client lists, methodologies, training materials, computer software, documents, models,
source code, designs, know how, techniques, systems, processes, works of authorship,
projects, plans, and flow charts, and listings of any or all of the foregoing. All
Confidential Information is and will at all times remain the exclusive property of Employer.
Confidential Information does not include: (i) information that at the time of disclosure
is in the public domain through no fault of Employee’s; (ii) information disclosed by a
third party without breach of a confidentiality obligation; (iii) information approved for
release by written authorization of Employer; or (iv) information required by law or an
order of any court, agency or proceeding to be disclosed.

	4.2	 	Employee agrees to undertake the following obligations, which Employee acknowledges to be
reasonably designed to protect Employer’s legitimate business interests without unnecessarily
or unreasonably restricting Employee’s post-employment opportunities.

	 	4.2.1	 	Employee will not at any time during or following termination of employment
with Employer disclose Confidential Information to any corporation, partnership, trust
or natural person (collectively “person”) except to the extent required in the ordinary
course of performing Employee’s duties and responsibilities. Employee will keep secret
and take all necessary precautions against disclosure of Confidential Information and
will not use or attempt to use Confidential Information in any manner that may cause or
be calculated to cause injury or loss directly or indirectly to Employer.
	 
	 	4.2.2	 	Employee will not take or use, or permit to be taken or used, any notes,
memoranda, reports, lists, records, drawings, sketches, specifications, software
programs, data, documentation or other materials of any nature relating to any matter
within the scope of Employer’s business or concerning any of its dealings or affairs
otherwise than for the benefit of Employer.
	 
	 	4.2.3	 	Upon termination of Employee’s employment for any reason, Employee will
deliver to Employer all Confidential Information and other materials then in Employee’s
possession including without limitation computer programs, files, notes, records,
memoranda, reports, lists, drawings, sketches, specifications, data, charts and all
other documents, materials and things (“Materials”), whether or not containing
Confidential Information, provided to or prepared by Employee in connection with
Employee’s employment by Employer, it being agreed that all Materials will be and
remain the sole and exclusive property of Employer.
	 
	 	4.2.4	 	Without limiting Employee’s obligations pursuant to Section 4.2.3, Employee
agrees that while employed by Employer and for a period of eighteen months following
termination of employment, Employee will not, whether alone or as owner, partner,
officer, director, consultant, agent, employee independent contractor or stockholder of
any firm, corporation or other commercial enterprise, directly or indirectly solicit
engagements with (i) any client of Employer for whom Employer performed services within
the one year period preceding termination of employment, or (ii) any current client
prospect of Employer for whom Employee directly or indirectly assisted in the
preparation or submission of a proposal made by Employer to such client prospect during
the one year period preceding termination of employment, unless Employer acknowledges
in writing its intent not to pursue further such client prospect.

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	 	4.2.5	 	Ownership by Employee of up to and including 5% of any class of securities of
any public or non-public person will not be considered to be in competition with
Employer.
	 
	 	4.2.6	 	During Employee’s employment with Employer and for a period of 18 months
thereafter, Employee will not, directly or indirectly, solicit or hire any employee of
Employer to work for any person other than Employer or engage in any activity that
would cause any employee to violate any agreement with Employer, or dissuade, or
attempt to dissuade, any such employee from faithfully discharging such employee’s
contractual and fiduciary obligations to serve Employer’s interests with undivided
loyalty.

	4.3	 	At no time during Employee’s employment with Employer will Employee directly or indirectly
disclose or use the confidential or proprietary information of a third party without such
party’s prior written consent. In particular, Employee will not:

	 	4.3.1	 	Disclose or use any confidential or proprietary information of his or her
prior employer(s) or such employers’ clients or customers without prior written
consent.
	 
	 	4.3.2	 	Use any illegal means to acquire a third-party’s confidential or proprietary
information.
	 
	 	For purposes of this Section 4, the term “Employer” will include all affiliates of Employer
including its shareholder(s), subsidiaries and any other entities that control, are
controlled by or are under common control of Employer.

	5	 	Remedies

Employee recognizes and agrees that a breach of any or all of the provisions of Section 4 will
constitute immediate and irreparable harm to Employer for which damages cannot be readily
calculated and for which damages are an inadequate remedy. Accordingly, Employee acknowledges that
in addition to any and all remedies at law, Employer will be entitled to specific performance or
injunctive or other equitable relief to prevent the violation of Employee’s obligations under this
Agreement.

	6	 	Intellectual Property

	6.1	 	Employee will disclose immediately to Employer all ideas, inventions and business plans made,
conceived, discovered or developed during the course of Employee’s employment with Employer
including without limitation all inventions, modifications, discoveries, developments,
improvements, computer programs, processes, products or procedures whether or not protectable
upon application by copyright, patent, trademark, trade secret or other proprietary rights
(“Work Product”) that:

	 	6.1.1	 	relate to the business of Employer or any of its clients or suppliers or any
product or service being developed, manufactured, sold or otherwise provided by
Employer or that may be used in relation therewith; or
	 
	 	6.1.2	 	result from tasks assigned to Employee by Employer; or

-3-

 

	 	6.1.3	 	result from the use of the premises or personal property (whether tangible or
intangible) owned, leased or contracted for by Employer.
	 
	 	Employee agrees that Work Product will be the property of Employer and, if subject to
copyright, will be considered a “work made for hire” within the meaning of the Copyright Act
of 1976, as amended (the “Act”). If and to the extent that any Work Product is found as a
matter of law not to be a “work made for hire” within the meaning of the Act, Employee
expressly assigns to Employer all right, title and interest in and to the Work Product and
all copies thereof, together with all copyright, patent, trademark, trade secret and other
proprietary rights in the Work Product, without further consideration, free from any claim,
lien for balance due or rights of retention thereto on the part of Employee.

	6.2	 	In accordance with the Illinois Employee Patent Act, Employer hereby notifies Employee that
the provisions of Section 6.1 do not apply to any inventions for which no equipment, supplies,
facility or trade secret information of Employer was used and which was developed entirely on
the Employee’s own time unless: (i) the invention relates to Employer’s business or its actual
or demonstrably anticipated research or development, or (ii) the invention results from any
work performed by the Employee for Employer.

	6.3	 	Employee agrees that Work Product will be the property of Employer and, if subject to
copyright, will be considered a “work made for hire” within the meaning of the Copyright Act
of 1976, as amended (the “Act”). If and to the extent that any Work Product is found as a
matter of law not to be a “work made for hire” within the meaning of the Act, Employee
expressly assigns to Employer all right, title and interest in and to the Work Product and all
copies thereof, together with all copyright, patent, trademark, trade secret and other
proprietary rights in the Work Product, without further consideration, free from any claim,
lien for balance due or rights of retention thereto on the part of Employee.

	6.4	 	In the event that Employer is unable, after reasonable effort, to secure Employee’s signature
on any letters patent, copyright or other analogous protection relating to Work Product,
whether because of Employee’s physical or mental incapacity or for any other reason
whatsoever, Employee hereby irrevocably designates and appoints Employer and its duly
authorized officers and agents as Employee’s agent and attorney-in-fact to act for and on
Employee’s behalf to execute and file any such application or applications and to do all other
lawfully permitted acts to further the prosecution and issuance of letters patent, copyright
and other analogous protection with the same legal force and effect as if personally executed
by Employee.

	7	 	Employer’s Property

During the course of Employee’s employment, Employer will provide Employee with personal property
owned or leased by Employer including without limitation a laptop computer. Employee acknowledges
and agrees that (i) all such property is and will at all time remain the property of Employer, and
(ii) Employer shall have the right to deduct from any amounts due Employee (including Employee’s
base compensation) the then fair market value of any such property not promptly returned to
Employer upon termination of Employee’s employment for any reason.

-4-

 

	8	 	Costs and Expenses of Enforcement

Employee will reimburse Employer for all costs and expenses (including reasonable attorneys’ fees)
incurred by Employer in connection with the enforcement of Employer’s rights under any provision of
this Agreement arising from or relating to Employee’s knowing, willful or intentional breach of
Employee’s obligations under this Agreement.

	9	 	Indemnity

	9.1	 	Provided that Employee is not in breach of any duties or obligation under this Agreement,
Employer will indemnify, defend and hold Employee harmless from and against all damages,
liability and expenses (including reasonable attorney’s fees) arising as a result of

	 	9.1.1	 	claims brought by the employer by which Employee was employed immediately
preceding Employee’s employment by Employer (“Previous Employer”) (i) alleging any
breach, for the benefit of Employer, of Employee’s obligations to the Previous Employer
with respect to Confidential Information of the Previous Employer or (i) based upon
Employer’s employment of Employee; or
	 
	 	9.1.2	 	claims that are deemed by Employer (in its sole discretion) to be frivolous or
harassing; or
	 
	 	9.1.3	 	claims brought by any client of Employer alleging the breach of any duty owed
by Employer or Employee to such client.

	9.2	 	Notwithstanding the foregoing, Employer will have no indemnification obligation:

	 	9.2.1	 	under Section 9.1.1 arising from or relating to any willful or intentional
misconduct or breach of Employee’s obligation to the Previous Employer with respect to
Confidential Information of the Previous Employer; or
	 
	 	9.2.2	 	under Section 9.1.3 arising from or relating to Employee’s willful or
intentional misconduct or breach of Employee’s obligations to Employer; or
	 
	 	9.2.3	 	arising from or relating to any act of Employee outside the scope of
Employee’s employment.

	10	 	Assignment

Employee acknowledges that the services to be rendered pursuant to this Agreement are unique and
personal. Accordingly, Employee may not assign any rights or delegate any duties or obligations
under this Agreement. Employer may assign this Agreement to a successor, a shareholder,
subsidiary, purchaser or transferee of all, or substantially all, of the assets of Employer.
Following any such assignment, all covenants and agreements of Employee under this Agreement will
inure to the benefit of and be enforceable by such successors or assignee.

	11	 	Notices

All notices, demands and other communications which are required or may be given under this
Agreement must be in writing and will be deemed to have been duly given when delivered personally
or transmitted electronically by email or facsimile, receipt acknowledged, or in the

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case of documented overnight delivery service or registered or certified mail, return receipt
requested, delivery charge or postage prepaid, on the date shown on the receipt therefor and if to
Employer to:

DiamondCluster International North America, Inc.

Suite 3000 John Hancock Center

875 North Michigan Avenue

Chicago, Illinois 60611

Facsimile 312.255.6000

and if to Employee, to Employee last’s known address.

	12	 	Entire Agreement

	12.1	 	This Agreement constitutes the entire agreement between Employer and Employee with respect to
the subject matter hereof and supersedes any and all other prior or contemporary oral or
written representations or agreements.

	12.2	 	Notwithstanding the foregoing, the parties acknowledge and agree that the Partners’ Operating
Agreement governs the relationships among all employees of Employer designated as Partner,
including certain matters relating to compensation and to the payment of the deferred portion
of base compensation.

	12.3	 	No waiver or amendment of this Agreement shall be effective unless in writing and executed by
both parties. Employee’s obligations under this Agreement will survive termination of
employment for any reason and will be binding on Employee’s heirs, executors, administrators
and legal representatives.

	13	 	Applicable Law

This Agreement is governed by and construed in accordance with the laws of the State of Illinois.
Employer and Employee consent to jurisdiction and venue only in the Circuit Court of Cook County,
Illinois or the Federal District Court for the Northern District of Illinois.

	14	 	Severability

Employee acknowledges and agrees that:

	14.1	 	the type and periods of restriction imposed by the provisions of this Agreement are fair,
reasonable and reasonably required for the protection of Employer and the goodwill associated
with its business;

	14.2	 	each provision is a separate and independent clause, and the unenforceability of any one
clause will in no way impair the enforceability of any of the other clauses;

	14.3	 	if any provision contained in this Agreement is for any reason held to be prohibited by, or
invalid under, applicable law, or to be excessively broad as to scope, activity or subject so
as to be unenforceable at law, such provision will be construed to be ineffective only to the
extent of such prohibition without invalidating the remainder of such provision or the
remaining provisions of this Agreement or, in the case of a provision found to be excessively
broad, by limiting and reducing such provision so as to permit such
provision to be enforceable to the maximum extent compatible with the applicable law as it will then
appear.

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	15	 	No Term of Employment

Nothing in this Agreement creates any term of employment, it being expressly understood and agreed
that Employee’s employment is at will and that either party may terminate such employment at any
time.

	16	 	Charitable Contributions

	16.1	 	During each calendar year Employee will contribute not less than 2% of Employee’s gross base
compensation calendar year to charities approved by the Management Committee (as defined in
the Partners’ Operating Agreement). All such contributions will be made pursuant to policies
established from time to time by the Management Committee. Employee authorizes Employer to
make any deductions including without limitation periodic deductions from base compensation
payable to Employee in accordance with such policies.

	16.2	 	The Management Committee will publish a list of approved charities from time to time.
Employee may request approval of not-previously approved charities by notice to the Management
Committee received not less than 30 days prior to the end of the calendar year.

	16.3	 	Employer will match in an amount up to 2% of Employee’s gross base compensation the amount of
contributions made by or directed to be made on behalf of Employee to colleges or universities
at which Employer recruits or intends to recruit for new employees. The Management Committee
will publish a list of such colleges and universities. Notwithstanding the foregoing, in its
sole discretion Employer may limit or eliminate the matching contribution at any time.

	17	 	Acknowledgment

Employee acknowledges that he/she has read and understood, and accepts, the provisions of this
Agreement.

DiamondCluster International

North America, Inc.

	 	 	 	 	 
	By

	 	/s/ Melvyn E. Bergstein
	 	/s/ William McClayton
	 

	 	 
	 	 
	Melvyn E. Bergstein	 	 
	Chairman and CEO	 	William McClayton
	 
	 	 	 	 
	April 11th, 2001	 	Date 4/11/2001

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