Document:

exv4w1

 

Exhibit 4.1

FORTY-FOURTH AMENDMENT TO THE

THIRD AMENDED AND RESTATED AGREEMENT OF

LIMITED PARTNERSHIP OF AIMCO PROPERTIES, L.P.

     This FORTY-FOURTH AMENDMENT TO THE THIRD AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP
OF AIMCO PROPERTIES, L.P., dated as of December 21, 2004 (this “Amendment”), is being executed by
AIMCO-GP, Inc., a Delaware corporation (the “General Partner”), as the general partner of AIMCO
Properties, L.P., a Delaware limited partnership (the “Partnership”), pursuant to the authority
conferred on the General Partner by Section 7.3.C(7) of the Third Amended and Restated Agreement of
Limited Partnership of AIMCO Properties, L.P., dated as of July 29, 1994, as amended and/or
supplemented from time to time (the “Agreement”). Capitalized terms used, but not otherwise
defined herein, shall have the respective meanings ascribed thereto in the Agreement.

     WHEREAS, pursuant to Section 4.2.A of the Agreement, the General Partner is authorized to
determine the designations, preferences and relative, participating, optional or other special
rights, powers and duties of Partnership Preferred Units.

     NOW, THEREFORE, in consideration of the foregoing, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

     1. The Agreement is hereby amended by the addition of a new exhibit, entitled “Exhibit
VV,” in the form attached hereto, which shall be attached to and made a part of the Agreement.

     2. Except as specifically amended hereby, the terms, covenants, provisions and conditions of
the Agreement shall remain unmodified and continue in full force and effect and, except as amended
hereby, all of the terms, covenants, provisions and conditions of the Agreement are hereby ratified
and confirmed in all respects.

 

 

     IN WITNESS WHEREOF, this Amendment has been executed as of the date first written above.

	 	 	 	 	 
	 	GENERAL PARTNER:

AIMCO-GP, INC.

 	 
	 	By:  	/s/ Paul J. McAuliffe
 	 
	 	 	Name:  	Paul J. McAuliffe 	 
	 	 	Title:  	Executive Vice President and
Chief Financial Officer 	 

 

 

	 	 	 	 	 

EXHIBIT VV

PARTNERSHIP UNIT DESIGNATION OF THE

CLASS Y PARTNERSHIP PREFERRED UNITS

OF AIMCO PROPERTIES, L.P.

     1. Number of Units and Designation.

     A class of Partnership Preferred Units is hereby designated as “Class Y Partnership Preferred
Units,” and the number of Partnership Preferred Units constituting such class shall be 3,450,000.

     2. Definitions.

     For purposes of the Class Y Partnership Preferred Units, the following terms shall have the
meanings indicated in this Section 2, and capitalized terms used and not otherwise defined herein
shall have the meanings assigned thereto in the Agreement:

	 	 	“Agreement” shall mean the Third Amended and Restated Agreement of Limited Partnership of
the Partnership, dated as of July 29, 1994, as amended.
	 
	 	 	“Class Y Partnership Preferred Unit” means a Partnership Preferred Unit with the
designations, preferences and relative, participating, optional or other special rights,
powers and duties as are set forth in this Exhibit VV. It is the intention of the
General Partner that each Class Y Partnership Preferred Unit shall be substantially the
economic equivalent of one share of Class Y Preferred Stock.
	 
	 	 	“Class Y Preferred Stock” means the Class Y Cumulative Preferred Stock, par value $0.01 per
share, of the Previous General Partner.
	 
	 	 	“Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, or any
successor statute thereto. Reference to any provision of the Code shall mean such
provision as in effect from time to time, as the same may be amended, and any successor
thereto, as interpreted by any applicable regulations or other administrative
pronouncements as in effect from time to time.
	 
	 	 	“Distribution Payment Date” shall mean any date on which cash dividends are paid on all
outstanding shares of the Class Y Preferred Stock.
	 
	 	 	“Junior Partnership Units” shall have the meaning set forth in paragraph (c) of Section 7
of this Exhibit VV.
	 
	 	 	“Parity Partnership Units” shall have the meaning set forth in paragraph (b) of Section 7
of this Exhibit VV.
	 
	 	 	“Partnership” shall mean AIMCO Properties, L.P., a Delaware limited partnership.

VV-1

 

	 	 	“Senior Partnership Units” shall have the meaning set forth in paragraph (a) of Section 7
of this Exhibit VV.

     3. Distributions.

     On every Distribution Payment Date, the holders of Class Y Partnership Preferred Units shall
be entitled to receive distributions payable in cash in an amount per Class Y Partnership Preferred
Unit equal to the per share dividend payable on the Class Y Preferred Stock on such Distribution
Payment Date. Each such distribution shall be payable to the holders of record of the Class Y
Partnership Preferred Units, as they appear on the records of the Partnership at the close of
business on the record date for the dividend payable with respect to the Class Y Preferred Stock
on such Distribution Payment Date. Holders of Class Y Partnership Preferred Units shall not be
entitled to any distributions on the Class Y Partnership Preferred Units, whether payable in cash,
property or stock, except as provided herein.

     4. Liquidation Preference.

     (a) In the event of any liquidation, dissolution or winding up of the Partnership, whether
voluntary or involuntary, before any payment or distribution of the Partnership (whether capital,
surplus or otherwise) shall be made to or set apart for the holders of Junior Partnership Units,
the holders of Class Y Partnership Preferred Units shall be entitled to receive Twenty-Five Dollars
($25.00) per Class Y Partnership Preferred Unit (the “Liquidation Preference”), plus an amount per
Class Y Partnership Preferred Unit equal to all dividends (whether or not declared or earned)
accumulated, accrued and unpaid on one share of Class Y Preferred Stock to the date of final
distribution to such holders; but such holders shall not be entitled to any further payment. Until
the holders of the Class Y Partnership Preferred Units have been paid the Liquidation Preference in
full, plus an amount equal to all dividends (whether or not declared or earned) accumulated,
accrued and unpaid on the Class Y Preferred Stock to the date of final distribution to such
holders, no payment shall be made to any holder of Junior Partnership Units upon the liquidation,
dissolution or winding up of the Partnership. If, upon any liquidation, dissolution or winding up
of the Partnership, the assets of the Partnership, or proceeds thereof, distributable among the
holders of Class Y Partnership Preferred Units shall be insufficient to pay in full the
preferential amount aforesaid and liquidating payments on any Parity Partnership Units, then such
assets, or the proceeds thereof, shall be distributed among the holders of Class Y Partnership
Preferred Units and any such Parity Partnership Units ratably in the same proportion as the
respective amounts that would be payable on such Class Y Partnership Preferred Units and any such
other Parity Partnership Units if all amounts payable thereon were paid in full. For the purposes
of this Section 4, (i) a consolidation or merger of the Partnership with one or more partnerships,
or (ii) a sale or transfer of all or substantially all of the Partnership’s assets shall not be
deemed to be a liquidation, dissolution or winding up, voluntary or involuntary, of the
Partnership.

          (b) Upon any liquidation, dissolution or winding up of the Partnership, after payment shall
have been made in full to the holders of Class Y Partnership Preferred

VV-2

 

Units and any Parity Partnership Units, as provided in this Section 4, any other series or
class or classes of Junior Partnership Units shall, subject to the respective terms thereof, be
entitled to receive any and all assets remaining to be paid or distributed, and the holders of the
Class Y Partnership Preferred Units and any Parity Partnership Units shall not be entitled to share
therein.

     5. Redemption.

     Class Y Partnership Preferred Units shall be redeemable by the Partnership as follows:

          (a) At any time that the Previous General Partner exercises its right to redeem all or any of
the shares of Class Y Preferred Stock, the General Partner shall cause the Partnership to redeem an
equal number of Class Y Partnership Preferred Units, at a redemption price per Class Y Partnership
Preferred Unit payable in cash and equal to the same price per share paid by the Previous General
Partner to redeem the Class Y Preferred Stock. In the event of a redemption of Class Y Partnership
Preferred Units, if the redemption date occurs after a dividend record date for the Class Y
Preferred Stock and on or prior to the related Distribution Payment Date, the distribution payable
on such Distribution Payment Date in respect of such Class Y Partnership Preferred Units called for
redemption shall be payable on such Distribution Payment Date to the holders of record of such
Class Y Partnership Preferred Units on the applicable dividend record date, and shall not be
payable as part of the redemption price for such Class Y Partnership Preferred Units.

          (b) If the Partnership shall redeem Class Y Partnership Preferred Units pursuant to paragraph
(a) of this Section 5, from and after the redemption date (unless the Partnership shall fail to
make available the amount of cash necessary to effect such redemption), (i) except for payment of
the redemption price, the Partnership shall not make any further distributions on the Class Y
Partnership Preferred Units so called for redemption, (ii) said units shall no longer be deemed to
be outstanding, and (iii) all rights of the holders thereof as holders of Class Y Partnership
Preferred Units of the Partnership shall cease except the rights to receive the cash payable upon
such redemption, without interest thereon; provided, however, that if the redemption date occurs
after dividend record date for the Class Y Preferred Stock and on or prior to the related
Distribution Payment Date, the full distribution payable on such Distribution Payment Date in
respect of such Class Y Partnership Preferred Units called for redemption shall be payable on such
Distribution Payment Date to the holders of record of such Class Y Partnership Preferred Units on
the applicable dividend record date notwithstanding the prior redemption of such Class Y
Partnership Preferred Units. No interest shall accrue for the benefit of the holders of the Class
Y Partnership Preferred Units to be redeemed on any cash set aside by the Partnership.

          (c) If fewer than all the outstanding Class Y Partnership Preferred Units are to be redeemed,
units to be redeemed shall be selected by the Partnership from outstanding Class Y Partnership
Preferred Units not previously called for redemption by any method determined by the General
Partner in its discretion. Upon any such

VV-3

 

redemption, the General Partner shall amend Exhibit A to the Agreement as appropriate
to reflect such redemption.

     6. Status of Reacquired Units.

     All Class Y Partnership Preferred Units which shall have been issued and reacquired in any
manner by the Partnership shall be deemed cancelled.

     7. Ranking.

     Any class or series of Partnership Units of the Partnership shall be deemed to rank:

          (a) prior or senior to the Class Y Partnership Preferred Units, as to the payment of
distributions and as to distributions of assets upon liquidation, dissolution or winding up, if the
holders of such class or series shall be entitled to the receipt of distributions and of amounts
distributable upon liquidation, dissolution or winding up, as the case may be, in preference or
priority to the holders of Class Y Partnership Preferred Units (“Senior Partnership Units”);

          (b) on a parity with the Class Y Partnership Preferred Units, as to the payment of
distributions and as to distribution of assets upon liquidation, dissolution or winding up, whether
or not the distribution rates, distribution payment dates or redemption or liquidation prices per
unit or other denomination thereof be different from those of the Class Y Partnership Preferred
Units if (i) such class or series of Partnership Units shall be Class B Partnership Preferred
Units, Class C Partnership Preferred Units, Class D Partnership Preferred Units, Class G
Partnership Preferred Units, Class H Partnership Preferred Units, Class I Partnership Preferred
Units, Class J Partnership Preferred Units, Class K Partnership Preferred Units, Class L
Partnership Preferred Units, Class M Partnership Preferred Units, Class N Partnership Preferred
Units, Class O Partnership Preferred Units, Class P Partnership Preferred Units, Class Q
Partnership Preferred Units, Class R Partnership Preferred Units, Class S Partnership Preferred
Units, Class T Partnership Preferred Units, Class U Partnership Preferred Units, Class V
Partnership Preferred Units, Class W Partnership Preferred Units, Class X Partnership Preferred
Units, Class One Partnership Preferred Units, Class Two Partnership Preferred Units, Class Three
Partnership Preferred Units, Class Four Partnership Preferred Units, Class Six Partnership
Preferred Units, Class Seven Partnership Preferred Units or Class Nine Partnership Preferred Units,
or (ii) the holders of such class or series of Partnership Units and the Class Y Partnership
Preferred Units shall be entitled to the receipt of distributions and of amounts distributable upon
liquidation, dissolution or winding up in proportion to their respective amounts of accrued and
unpaid distributions per unit or other denomination or liquidation preferences, without preference
or priority one over the other (the Partnership Units referred to in clauses (i) and (ii) of this
paragraph being hereinafter referred to, collectively, as “Parity Partnership Units”); and

          (c) junior to the Class Y Partnership Preferred Units, as to the payment of distributions and
as to the distribution of assets upon liquidation, dissolution or

VV-4

 

winding up, if (i) such class or series of Partnership Units shall be Partnership Common
Units, Class I High Performance Partnership Units, Class II High Performance Partnership Units,
Class III High Performance Partnership Units, Class IV High Performance Partnership Units, Class V
High Performance Partnership Units, Class VI High Performance Partnership Units, Class VII High
Performance Partnership Units, Class Five Partnership Preferred Units, Class Eight Partnership
Preferred Units, Class Ten Partnership Preferred Units, Class Eleven Partnership Preferred Units or
Class Twelve Partnership Preferred Units or (ii) the holders of Class Y Partnership Preferred Units
shall be entitled to receipt of distributions or of amounts distributable upon liquidation,
dissolution or winding up, as the case may be, in preference or priority to the holders of such
class or series of Partnership Units (the Partnership Units referred to in clauses (i) and (ii) of
this paragraph being hereinafter referred to, collectively, as “Junior Partnership Units”).

     8. Special Allocations.

     (a) Gross income and, if necessary, gain shall be allocated to the holders of Class Y
Partnership Preferred Units for any Fiscal Year (and, if necessary, subsequent Fiscal Years) to the
extent that the holders of Class Y Partnership Preferred Units receive a distribution on any Class
Y Partnership Preferred Units (other than an amount included in any redemption pursuant to Section
5 hereof) with respect to such Fiscal Year.

     (b) If any Class Y Partnership Preferred Units are redeemed pursuant to Section 5 hereof, for
the Fiscal Year that includes such redemption (and, if necessary, for subsequent Fiscal Years) (a)
gross income and gain (in such relative proportions as the General Partner in its discretion shall
determine) shall be allocated to the holders of Class Y Partnership Preferred Units to the extent
that the redemption amounts paid or payable with respect to the Class Y Partnership Preferred Units
so redeemed exceeds the aggregate Capital Contributions (net of liabilities assumed or taken
subject to by the Partnership) per Class Y Partnership Preferred Unit allocable to the Class Y
Partnership Preferred Units so redeemed and (b) deductions and losses (in such relative proportions
as the General Partner in its discretion shall determine) shall be allocated to the holders of
Class Y Partnership Preferred Units to the extent that the aggregate Capital Contributions (net of
liabilities assumed or taken subject to by the Partnership) per Class Y Partnership Preferred Unit
allocable to the Class Y Partnership Preferred Units so redeemed exceeds the redemption amount paid
or payable with respect to the Class Y Partnership Preferred Units so redeemed.

     9. Restrictions on Ownership.

     The Class Y Partnership Preferred Units shall be owned and held solely by the General Partner
or the Special Limited Partner.

     10. General.

VV-5

 

          (a) The ownership of Class Y Partnership Preferred Units may (but need not, in the sole and
absolute discretion of the General Partner) be evidenced by one or more certificates. The General
Partner shall amend Exhibit A to the Agreement from time to time to the extent necessary to
reflect accurately the issuance of, and subsequent conversion, redemption, or any other event
having an effect on the ownership of, Class Y Partnership Preferred Units.

          (b) The rights of the General Partner and the Special Limited Partner, in their capacity as
holders of the Class Y Partnership Preferred Units, are in addition to and not in limitation of any
other rights or authority of the General Partner or the Special Limited Partner, respectively, in
any other capacity under the Agreement or applicable law. In addition, nothing contained herein
shall be deemed to limit or otherwise restrict the authority of the General Partner or the Special
Limited Partner under the Agreement, other than in their capacity as holders of the Class Y
Partnership Preferred Units.

VV-6Exhibit 10.1

 

 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

 

This Amended and
Restated Employment Agreement (this “Agreement”) is made and entered into by
and between SSA Global Technologies, Inc., a Delaware corporation (“Company”),
and Michael Greenough (“Executive”), and sets forth the terms of Executive’s
employment with the Company, as well as the parties’ understanding with respect
to any future termination of that employment relationship.

 

RECITALS

 

A.  Executive is
currently employed by the Company as its Chief Executive Officer and as the
Chairman of its Board of Directors pursuant to the terms of that certain
Employment Agreement, dated April 30, 2001 (“Prior Agreement”).

 

B.  The Prior
Agreement obligates the Company to grant Executive certain options to purchase
shares of the common stock of the Company (“Option Rights”) which grant has
been deferred with the consent of Executive.

 

C.  The Company
desires to amend and clarify the Option Rights in certain respects and to enter
into this Agreement and Executive is willing to consent to enter into this
Agreement.

 

AGREEMENT

 

1.  Prior
Agreement.  Effective January 3, 2003 (“Effective Date”), the
Prior Agreement is hereby amended and restated in its entirety in the form of
this Agreement.

 

2.  Term. 
The Term of this Agreement shall commence on the Effective Date and continue
through and until December 31, 2006, unless terminated prior thereto in
accordance with Section 5 of this Agreement.  Commencing
January 1, 2007, and on each subsequent January 1, the Term shall be
automatically extended through the end of the then current calendar year,
unless either party provides written notice of intent not to renew to the other
party on or before November 1 of the prior calendar year, subject to early
termination in accordance with Section 5 of this Agreement. The term of
this Agreement (“Term”) shall be the period referenced in the first sentence of
this Section 2, along with any extension thereof pursuant to the second
sentence of this Section 2.

 

3.  Position and
Duties.  Executive shall continue to be employed by the Company as its
President, Chief Executive Officer, and, to the extent permitted by applicable
law, Chairman of the Board of Directors reporting directly to the Company’s
Board of Directors (the “Board”). As its President and Chief Executive Officer,
Executive shall have responsibility for the day to day operations of the
Company and the development and implementation of it business plans and
strategies and shall have such authority as is customarily attendant to such
positions.

 

4.  Compensation. 
Executive shall be compensated by the Company for his services as follows:

 

 

 

(a) 
Base Salary.  Executive shall be paid a base salary of  $500,000.00 annually, as such amount may
be adjusted pursuant to this Section 4(a) (“Base Salary”), in accordance
with the Company’s normal payroll procedures. Executive’s Base Salary shall be
reviewed by the Board not less frequently than annually with a view to making
such adjustments to the Base Salary as the Board may feel to be reasonable and
appropriate, in its sole discretion, taking into consideration Executive’s
performance and the financial performance of the Company, provided that no such
adjustment shall be made which would reduce the Base Salary below $500,000
annually without Executive’s consent.

 

(b) 
Bonus.  Executive shall be eligible to earn a bonus (“Annual
Bonus”) with respect to each fiscal year of the Company provided that the
applicable targets based on the financial performance of the Company or other
performance goals in respect of such fiscal year, established from time to time
by the Board, have been met.  The target amount of Executive’s Annual
Bonus in respect of each fiscal year shall be fixed from time to time by the
Board, in its sole discretion, but shall not be less than $500,000 nor exceed
$800,000 in respect of any fiscal year (the “Target Bonus Amount”). The actual
amount of any Annual Bonus payable to Executive with respect to a fiscal year
shall be determined by the Board in its sole discretion. Such Annual Bonus
shall be paid to the Executive in cash at such times as the Board may determine
from time to time (e.g., quarterly or annually) and, in any event, all amounts
due in respect of the Annual Bonus for a participation year will be paid no
later than 30 calendar days after the Company’s receipt of audited financial
statements in respect of such year. Except as provided in Section 5
herein, Executive shall not be eligible to receive an Annual Bonus unless
Executive is an employee of the Company on the last day of the fiscal year to
which such Annual Bonus relates; but Executive shall not be obligated to return
any portion of an Annual Bonus once it has been paid.

 

(c) 
Benefits.  Executive shall be eligible, on at least the same basis
as other similarly situated members of senior management of the Company, to
participate in and to receive benefits under any of the Company’s employee
benefit plans, in accordance with the terms of such plans as in effect from
time to time. Executive shall be entitled, at a minimum, to receive all fringe
benefits and executive perquisites made available to any member of the senior
management of the Company. The benefits described in this Section 3(c)
shall hereinafter be referred to as “Benefits”. During the term of the
Agreement, Executive shall also be entitled to receive a housing allowance of
up to Three Thousand Dollars ($3,000) per month or such other amount as shall
be mutually agreeable to the parties.

 

(d) 
Expense Reimbursement.  Executive shall be entitled to
reimbursement from the Company for all reasonable and customary travel and
other business expenses incurred by Executive in carrying out his duties under
this Agreement, in accordance with the general reimbursement policy of the
Company as in effect from time to time. Executive shall report all such
reimbursable expenditures to the Company not less frequently than monthly
accompanied by adequate records and other documentary evidence as required by
the Company’s reimbursement policy, and federal or state tax statutes or
regulations governing the substantiation of such expenditures.

 

(e) 
Stock Options and Other Equity Rights.

 

(i)     Grant
to Executive.  Not later than
July 31, 2003, the Company shall grant Executive an option (the “Option”)
to purchase 203,715 shares (“Option Shares”) of the common stock, par value
$0.01 per share, of the Company (the “Common Stock”) at an exercise price per
share equal to $29.92 (the “Option Price”). Executive agrees to accept the
grant described in this paragraph in full satisfaction of the Option Rights.

 

 

2

 

 

(ii)     Vesting. 
(a) Fifty percent (50%) of the Option described in Section 4(e)(i) shall
vest and become fully exercisable on the Effective Date. Fifty percent (50%) of
the Option described in Section 4(e)(i) shall vest over a four (4) year
period such that 1/48th of the Option shall vest and become
exercisable on the last day of each calendar month commencing with the
Effective Date and ending December 31, 2006. The foregoing
notwithstanding, (A) the entire Option shall vest and become fully exercisable,
in accordance with Section 5 below, upon the termination of Executive’s
employment by the Company without Cause or by the Executive for Good Reason; and
(B) the entire Option shall vest and become fully exercisable to the extent
provided in Section 6 below upon the occurrence of a Change in Control as
defined in Section 6. Notwithstanding any provision contained in this
Agreement to the contrary, the Option shall expire and cease to be exercisable
on the tenth (10th) anniversary of the date of grant if not
terminated earlier in accordance with Section 5 herein.

 

(b) 
For purposes of this Agreement the “Committee” shall be defined as it is
defined in the 2003 Equity Incentive Plan, as amended from time to time (the
“Plan”).

 

(iii)     Options
in General.  The Option shall
be, except as otherwise provided by this Agreement, subject to the terms and
conditions of the Plan and the terms and conditions of the stock option
agreement attached hereto as Exhibit A (“Option Agreement”).  The Company
hereby represents and warrants that the Plan has been duly adopted and approved
by its Board and shareholders. Notwithstanding the foregoing, no amendment to
the Plan or the Option Agreement shall impair the rights of Executive with
respect to the Option without the prior consent of the Executive. Executive
shall be required to execute the Option Agreement as a condition to receiving
the Option. In the event of a conflict between the Option Agreement and this
Agreement, the provisions of the Option Agreement shall govern. The Option
shall not be an incentive stock option under section 422 of the Internal
Revenue Code of 1986, as amended (the “Code”), but shall be a nonstatutory
stock option.  Executive understands and acknowledges that the Option may
not constitute an option granted by the Company pursuant to the exemption from
registration pursuant to Rule 701 promulgated under the Securities Act of 1933,
as amended, and, accordingly, may be subject to greater or additional
restrictions on transfer of shares of stock acquired upon the exercise of the
Option than options granted to employees or others pursuant to the Plan.
Executive further understands and acknowledges that he shall have no
anti-dilution or other rights to maintain any particular ownership interest in
the Company.

 

(iv)     Additional
Options or Other Equity Rights. 
The Option is being granted in full satisfaction of the Option Rights and any
other rights that the Executive may have in respect of the equity securities of
the Company. Executive may be granted additional options or other forms of
equity rights under the terms of the Plan, (or any successor executive equity
based compensation program adopted by the Company) as and when additional
grants of options or rights are made to senior executives of the Company
generally, in the sole discretion of the Board.

 

(f) 
Registration Rights.  Executive shall have customary piggyback
registration rights with respect to his Option Shares which rights shall
entitle him to sell, on the same terms as Cerberus Capital Management, L.P. or
any of its affiliated funds or managed accounts (“Cerberus”) or General
Atlantic Partners 76, L.P. or any of its affiliated funds or managed accounts
(“GA”) in any registration of shares of Common Stock for sale by Cerberus or
GA, a number of Option Shares equal to (i) the total number of Option Shares
owned by Executive, multiplied by (ii) the aggregate percentage of its shares
proposed to be registered by Cerberus or GA in such registration. To the extent
the number of shares included in a registration is subject to cutback, such
cutbacks shall be made pro rata as between

 

 

3

 

Executive, on the one
hand, and Cerberus or GA, on the other hand. To the extent Cerberus or GA
participates in a registration of its shares pursuant to a registration rights
agreement, Executive agrees to abide by the terms of such registration rights
agreement as if he were a party thereto.

 

(g) 
Withholding.  The Company shall have the right to deduct and
withhold from any payments made to Executive hereunder any federal, state or
local income, employment or other taxes required by law to be withheld by the
Company with respect to such payment or any other payment or transfer made by
the Company for the benefit of Executive.

 

5.  Termination
of Employment.

 

(a) 
Termination by the Executive Other than for Good Reason.  The
Executive may terminate his employment during the Term upon ninety (90) days
prior written notice to the Company for other than Good Reason (as defined
below). In the event Executive terminates his employment with the Company other
than for Good Reason (as defined below), Executive shall be entitled to and
shall be subject to the following as applicable:

 

(i)     Payment
of any accrued but unpaid Base Salary through the date of such termination, any
unpaid Annual Bonus actually earned with respect to any prior fiscal year, and
Benefits in accordance with the terms of the applicable plans; provided, that,
all fringe benefits and perquisites shall terminate as of the date of
termination, except as otherwise required by law;

 

(ii)     Payment
in cash within ninety (90) days following the effective date of his termination
of an amount equal to the lesser of (i) the Deferred Bonus Amount or (ii) the
Alternative Amount.

 

(iii)     The
unvested portion of the Option held by Executive shall terminate immediately
upon Executive’s termination of his employment other than for Good Reason, and
Executive shall have until the earlier of (i) ninety (90) days following the
effective date of his termination or (ii) the end of the Option term in which
to exercise the portion of the Option that is vested through the effective date
of his termination;

 

(iv)     The
Company shall have the right (‘‘Executive Termination Call”) at any time which
is both after the date Executive’s employment terminates and the Maturity Date
of the Option Shares which are the subject of such Executive Termination Call
(“Purchase Date”) to purchase all, but not less than all, of the Option Shares
owned by Executive which could be subject to such Call on the Exercise Date (as
defined below). The price per share paid by the Company shall be equal to (a)
in the event that his employment terminates prior to the fourth anniversary of
the Effective Date, the Option Price, if any, paid by Executive for the Option
Shares or (b) in the event that such employment terminates on or after the
fourth anniversary of the Effective Date, the Fair Market Value Per Share of
the Company’s common stock on the Exercise Date. The Company shall give
Executive at least thirty (30) days advance written notice of each exercise of
the Executive Termination Call and shall specify in such notice (a) the
Purchase Date, which shall be not more than ninety (90) days following the date
of such notice, and (b) if applicable, the date as of which the Fair Market
Value Per Share of the Company’s common stock is to be determined for purposes
of such Executive Termination Call (“Exercise Date”), provided that in no event
may the Exercise Date be prior to the Maturity Date of the Option Shares
subject to such Executive Termination Call.  Any Option Shares purchased
by the Company in connection with the exercise of the Executive Termination
Call may be

 

 

4

 

paid for in cash or in
immediately available funds by check or by wire transfer. The Company’s rights
under this subparagraph (iv) shall terminate upon the effectiveness of an
Initial Public Offering.

 

(v)     For
purposes of this Section 5(a);

 

“Maturity
Date” shall mean with respect to any Option Shares (i) the date which is six
months and one day after the date the Option Shares are acquired pursuant to an
exercise of the Option or (ii) to the extent the Option Shares are purchased
with funds provided by the Company in the form of a loan to the Optionee which
is not a recourse obligation of the Optionee, the date which is six months and
one day after the date such loan is paid in full.

 

“Deferred
Bonus Amount” means (1) $3 million, if Executive’s employment terminates on or
before January 3, 2004, (2) $5 million, if Executive’s employment
terminates after January 3, 2004 and on or before January 3, 2005,
(3) $7 million, if Executive’s employment terminates after January 3, 2005
and on or before January 2, 2006, (4) $9 million, if Executive’s
employment terminates after January 3, 2006 and on or before
January 3, 2007, and (5) zero if Executive’s employment terminates after
January 3, 2007.

 

“Alternative
Amount” means as of any date an amount equal to the product of (i) the Fair
Market Value Per Share of the Company’s common stock on such date and (ii) the
number of shares of Common Stock representing five percent (5%) of the number
of such shares then issued and outstanding as of such date, determined on a
fully diluted basis and assuming that all securities issued by the Company
which could be converted into shares of Common Stock have been so converted.

 

“Fair
Market Value Per Share” means, in the event that shares of Common Stock are
listed on an established national or regional stock exchange, are admitted to
quotation on the National Association of Security Dealers Automated Quotation
System, or are publicly traded on an established securities market, the closing
price of the shares of Common Stock on such exchange or system or in such
market (the highest such closing price if there is more than one such exchange
or market on the relevant date) for the business day as of which such
determination is being made. In the event that the shares are not listed,
quoted or publicly traded or even if listed, quoted or publicly traded, the
price cannot be determined, the Fair Market Value Per Share shall be determined
by the Board, in its good faith business judgment.

 

(b) 
Death or Disability.  Executive’s employment shall automatically
terminate upon his death and such employment shall terminate at the Company’s
election, in the event of his Disability (as defined below), unless otherwise
prohibited by law. In the event of such a termination and contingent upon
Executive’s execution of a release of all claims against the Company in a form
acceptable to the Company, Executive or his legal representatives, as
applicable, will be entitled to and subject to the following:

 

(i)     Payment
of any accrued but unpaid Base Salary through the date of such termination, any
unpaid Annual Bonus actually earned with respect to any prior fiscal year and
Benefits in accordance with the terms of the applicable plan; provided, that,
all fringe benefits and perquisites shall terminate as of the date of
termination, except as otherwise required by law;

 

 

5

 

 

(ii)     A
pro rata portion of his Target Bonus for the fiscal year in which such
termination occurs (provided that the applicable performance targets as
determined by the Board have been satisfied or, in the reasonable business
judgment of the Board, based on available information as of the date of
termination, are likely to be satisfied) determined by multiplying the
applicable Target Bonus amount by a fraction the numerator of which is the
number of days in the fiscal year prior to the date of termination and the denominator
of which is 365, payable at such time described in Section 4(b) hereof. In
the event Executive has already received a payment representing a portion of
his Target Bonus for the fiscal year in which such termination occurs, such
payment shall be treated as an advance payment and deducted from the amount
calculated in accordance with this paragraph (but in no event shall be subject
to repayment by Executive);

 

(iii)     Continuation
of the payment of his Base Salary in accordance with the payroll practices of
the Company for three (3) full calendar months following his termination date;

 

(iv)     The
unvested portion of the Option held by the Executive shall terminate
immediately and Executive (or his legal representatives, as applicable), shall
have until the earlier of (i) one (1) year following the termination of
employment or (ii) the end of the Option term to exercise the portion of the
Option that is vested through the effective date of termination;

 

(v)     To
the extent the Executive’s dependents (“Dependents”) are covered under any
medical, prescription drug, or other health care plan of the Company at the
time of such termination, such coverage shall continue, at no cost to the
Executive and such Dependents, through the end of the calendar month which
includes the first anniversary of such termination and the qualifying event for
purposes of COBRA shall be deemed to be the first anniversary of such
termination; and

 

(vi)     Executive
(or his legal representatives, as applicable) shall have the right (“Death or
Disability Put”), by written notice to the Company given at any time which is
within thirty (30) days after of the later of (a) the date of such termination
of Executive’s employment or (b) the applicable Maturity Date (as defined in
5(a) above) of the Option Shares subject to such Death or Disability Put, to
sell to the Company all, but not less than all, of the Option Shares owned by
Executive (or his legal representative) which may be subject to such Death or
Disability Put on the date such put is exercised by the giving of such written
notice for a price per share equal to the Fair Market Value Per Share of the
Company’s common stock (as defined in Section 5(a) hereof) on the date
such Death or Disability Put is so exercised.

 

(vii)     The
Company shall have the right (“Death or Disability Call”) at any time which is
both after the date Executive’s employment terminates due to death or
Disability and the Maturity Date of the Option Shares which are the subject of
such Death or Disability Call (“Purchase Date”) to purchase all, but not less
than all, of the Option Shares owned by Executive which could be subject to
such Call on the Exercise Date (as defined below). The price per share paid by
the Company shall be equal to the Fair Market Value Per Share of the Company’s
common stock on the Exercise Date.  The Company shall give Executive at
least thirty (30) days advance written notice of each exercise of the Executive
Death or Disability Call and shall specify in such notice (a) the Purchase
Date, which shall be not more than ninety (90) days following the date of such
notice, and (b) the date as of which the Fair Market Value Per Share of the
Company’s common stock is to be determined for purposes of such Executive
Termination Call (“Exercise Date”), provided that in no event may the Exercise
Date be prior to the Maturity Date of the Option Shares subject to such
Executive Termination Call.  Any Option Shares purchased by the Company in
connection with the exercise of

 

 

6

 

 

the Death or Disability
Call may be paid for in cash or in immediately available funds by check or by
wire transfer. The Company’s rights under this subparagraph (vii) shall
terminate upon the effectiveness of an Initial Public Offering.

 

(viii)     Any
Option Shares purchased by the Company pursuant to subparagraphs (vi) or (vii)
may be paid for in cash or in immediately available funds by check or by wire
transfer.

 

(ix)     For
purposes of this Agreement, “Disability” means a determination by the Board of
the Company in accordance with applicable law that, as a result of a physical
or mental illness, the Executive is unable and has been unable to perform the
essential functions of his job with or without reasonable accommodation for a
period of (i) 90 consecutive days or (ii) 180 days in any one (1) year period.

 

(c) 
Termination for Cause.  The Company may terminate the Executive’s
employment for Cause (as defined below) at any time. In such event, Executive
shall only be entitled to and subject to the following as applicable:

 

(i)     Payment
of any accrued but unpaid Base Salary through the date of his termination, any
unpaid Annual Bonus actually earned with respect to the prior fiscal year and
Benefits in accordance with the terms of the applicable plans; provided, that,
all fringe benefits and perquisites shall terminate as of the date of
termination, except as otherwise required by law;

 

(ii)     The
unexercised portion of the Option (whether vested or unvested) held by
Executive shall terminate immediately upon his termination for Cause; and

 

(iii)     The
Company shall have the right, but not the obligation, to purchase all Option
Shares held by the Executive in accordance with the Executive Termination Call
provision described in Section 5(a)(iv) above.

 

(iv)     For
purposes of this Agreement, a termination for “Cause” occurs if Executive is
terminated by formal action of the Board taken at a meeting of which Executive
is given notice and has the opportunity to attend or participate in, for any of
the following reasons:

 

(I)     embezzlement,
dishonesty, or fraud;

 

(II)     conviction
(or plea of nolo contendere) for a felony involving moral turpitude or that
materially impairs Executive’s ability to perform his duties hereunder;

 

(III)     improper
and material disclosure or use of the Company’s confidential or proprietary
information; or

 

(IV)     Executive’s
willful failure or refusal to follow the lawful and good faith direction of the
Board, which, if curable, remains uncured following thirty (30) days’ written
notice to Executive from the Board describing such failure or refusal.

 

 

7

 

 

(d) 
Termination By the Company Other Than for Cause or By the Executive for Good
Reason.  The Company may terminate Executive’s employment without
Cause at any time without notice and Executive may terminate his employment for
Good Reason upon thirty (30) days prior written notice to the Company as set
forth herein. If Executive’s employment is terminated by the Company other than
for Cause or by Executive for Good Reason, in addition to receiving all accrued
Base Salary, any unpaid Annual Bonus actually earned and Benefits through the
date of termination, and contingent upon Executive’s execution of a release of
all claims against the Company in a form reasonably acceptable to the Company,
Executive shall be entitled to and shall be subject to the following as
applicable:

 

(i)     One
(1) year Base Salary and an amount equal to the average of the Annual Bonuses
earned by the Executive for the three (3) consecutive fiscal years preceding
the termination of his employment (or such shorter period of time in the event
Executive has not been employed by the Company for three (3) years), payable
monthly in twelve (12) equal installments;

 

(ii)     A
pro rata portion of his Target Bonus for the fiscal year in which such
termination occurs (provided that the applicable performance targets as
determined by the Board have been satisfied or, in the reasonable business
judgment of the Board, based on available information as of the date of
termination, are likely to be satisfied) determined by multiplying the
applicable Target Bonus amount by a fraction the numerator of which is the
number of days in the fiscal year prior to the date of termination and the
denominator of which is 365 payable within sixty days of the end of the fiscal
year.  In the event Executive has already received a payment representing
a percentage of his Target Bonus for the fiscal year in which such termination
occurs, such payment shall be treated as an advance payment and deducted from
the amount calculated in accordance with this paragraph (but in no event shall
be subject to repayment by the Executive);

 

(iii)     Immediate
vesting, deemed to occur on the day immediately prior to the date of such
termination, of the unvested portion of the Option or other equity rights which
he may be granted prior to such termination;

 

(iv)     The
right to exercise the Option at any time through the earlier of (i) the end the
Option term or (ii) the first (1st) anniversary of the date of such
termination;

 

(v)     To
the extent Executive or his dependents are covered under any medical,
prescription drug, or other health care plan of the Company at the time of such
termination, such coverage shall continue, at no cost to such Executive or his
dependents, through the end of the calendar month which includes the first
anniversary of such termination and the qualifying event for purposes of COBRA
shall be deemed to be the first anniversary of such termination;

 

(vi)     Executive
shall have the right (“Company Termination Put”), by written notice to the
Company given at any time which is within thirty (30) days after the later of
(i) the date of such termination of Executive’s employment or (ii) the
applicable Maturity Date (as defined in 5(a) above) of the Option Shares
subject to such Company Termination Put, to sell to the Company all, but not
less than all, of the Option Shares owned by Executive (or his legal
representative) which may be made subject to such Company Termination Put on
the date such Put is exercised by the giving of such written notice for a price
per share equal to the Fair Market Value Per Share of the Company’s common
stock (as defined in Section 5 (a) hereof) on the date such Company
Termination Put is so exercised.

 

 

8

 

(vii)     The
Company shall have the right (“Company Termination Call”) at any time which is
both after the date Executive’s employment terminates pursuant to this
Section 5(d) and the Maturity Date of the Option Shares which are the
subject of such Company Termination Call (“Purchase Date”) to purchase all, but
not less than all, of the Option Shares owned by Executive which could be
subject to such Call on the Exercise Date (as defined below). The price per
share paid by the Company shall be equal to the Fair Market Value Per Share of
the Company’s common stock on the Exercise Date. The Company shall give Executive
at least thirty (30) days advance written notice of each exercise of the
Company Termination Call and shall specify in such notice (a) the Purchase
Date, which shall be not more than ninety (90) days following the date of such
notice, and (b) the date as of which the Fair Market Value Per Share of the
Company’s common stock is to be determined for purposes of such Company
Termination Call (“Exercise Date”), provided that in no event may the Exercise
Date be prior to the Maturity Date of the Option Shares subject to such Company
Termination Call.  Any Option Shares purchased by the Company in
connection with the exercise of the Company Termination Call may be paid for in
cash or in immediately available funds by check or by wire transfer. The Company’s
rights under this subparagraph (vii) shall terminate upon the effectiveness of
an Initial Public Offering.

 

(viii)     For
purposes of this Agreement, “Good Reason” means any of the following conditions
(not consented to in advance by Executive or ratified subsequently by
Executive), which condition(s) remain(s) in effect thirty (30) days after
written notice to the Board from Executive of such conditions:

 

(I)     Any
breach by the Company of this Agreement with respect to any material obligation
to pay Executive compensation or Benefits, including the failure to pay the
Target Bonus upon the achievement of the targets set by the Company, to the
extent that the Company fails to cure such breach;

 

(II)     Any
material decrease in Executive’s Base Salary or minimum Target Bonus Amount
fixed by the Board;

 

(III)     Any
material, adverse change in Executive’s title, authority, responsibilities or
duties, as measured against Executive’s title, authority, responsibilities or
duties immediately prior to such change; or

 

(IV)     The
Company’s requirement that the Executive relocate the Executive’s office
outside of either the Chicago, Illinois or Dallas, Texas metropolitan areas,
without the Executive’s prior consent.

 

(e) 
Expiration of Term.  Upon the expiration of the Term pursuant to
Section 2 hereof, this Agreement shall terminate without further action by
the Executive or the Company. Upon such expiration and the termination of
Executive’s employment, Executive shall be entitled to and subject to the following:

 

(i)     Payment
of any accrued but unpaid Base Salary through the date of termination, any
unpaid Annual Bonus actually earned with respect to the prior fiscal year, and
Benefits in accordance with the terms of the applicable plans, provided, that,
all fringe benefits and perquisites shall terminate as of the date of
termination, except as otherwise required by law;

 

 

9

 

(ii)     An
amount equal to $100,000, payable in twelve (12) equal monthly installments,
provided that Executive executes and does not revoke a release of all claims
against the Company in a form acceptable to the Company. Such payments shall
commence within thirty (30) days of the Company’s receipt of the Executive’s
executed release of all claims;

 

(iii)     The
unvested portion of the Option held by Executive shall terminate immediately
upon termination and Executive shall have until the earlier of (i) thirty (30)
days following the effective date of his termination or (ii) the end of the Option
term in which to exercise the portion of the Option that is vested through the
effective date of his termination; and

 

(iv)     The
Company shall have the right (“Contract Termination Call”) at any time which is
both after the date Executive’s employment terminates pursuant to this
Section 5(e) and the Maturity Date of the Option Shares which are the
subject of such Contract Termination Call (“Purchase Date”) to purchase all,
but not less than all, of the Option Shares owned by Executive which could be
subject to such Call on the Exercise Date (as defined below). The price per
share paid by the Company shall be equal to the Fair Market Value Per Share of
the Company’s common stock on the Exercise Date. The Company shall give
Executive at least thirty (30) days advance written notice of each exercise of
the Contract Termination Call and shall specify in such notice (a) the Purchase
Date, which shall be not more than ninety (90) days following the date of such
notice, and (b) the date as of which the Fair Market Value Per Share of the
Company’s common stock is to be determined for purposes of such Contract
Termination Call (“Exercise Date”), provided that in no event may the Exercise
Date be prior to the Maturity Date of the Option Shares subject to such Contract
Termination Call.  Any Option Shares purchased by the Company in
connection with the exercise of the Contract Termination Call may be paid for
in cash or in immediately available funds by check or by wire transfer. The
Company’s rights under this subparagraph (iv) shall terminate upon the
effectiveness of an Initial Public Offering.

 

(f) 
No Mitigation.  The obligations of the Company to Executive which
arise upon the termination of his employment pursuant to this Section 5
shall not be subject to mitigation.

 

6.  Change in
Control.

 

(a) 
In the event of a “Change in Control” (as defined below), each then outstanding
Option held by Executive and each other option, stock grant or other equity
right granted to Executive after the Effective Date, provided that he is an
employee of the Company or any affiliate of the Company at the time the Change
in Control occurs, shall automatically vest and become exercisable in full
immediately prior to the effective date of the Change in Control. However, the
vesting of an outstanding option or other equity right held by Executive shall
not be accelerated if and to the extent that (i) such option is assumed by the
successor corporation (or parent thereof) in the Change in Control or (ii) such
option is to be replaced with a cash incentive program of the successor
corporation which preserves the excess of the Fair Market Value of the unvested
option shares over their exercise price then existing at the time of the Change
in Control and provides for subsequent payment of such amounts in accordance
with the then existing vesting schedule applicable to such unvested option
shares. Any option held by Executive which is neither assumed by the successor
corporation (or parent thereof) in the Change in Control nor exercised prior to
the Change in Control, provided that Executive was provided at least ten (10)
days advance written notice of the pending Change in Control, shall terminate
and cease to be outstanding effective upon the consummation of the Change in
Control.

 

10

 

 

(b) 
In the event of a termination other than for Cause of Executive’s employment
upon or within 60 days prior to or 365 days following a Change in Control, then
(i) each then outstanding Option held by Executive and each other option, stock
grant, or other equity right granted to Executive after the Effective Date
shall automatically vest and become exercisable in full effective as of the
time of such termination of employment, and such option or other equity right
shall remain exercisable until the earlier of fifth anniversary of the date of
such termination or the expiration of the option term, except to the extent
such options terminate earlier in accordance with paragraph (a) of this
Section 6 and (ii) each cash incentive program pursuant to clause (ii) of
paragraph (a) of this Section 6 above with respect to an unvested option
held by Executive prior to the Change in Control shall be accelerated and
become immediately payable in full upon such termination of employment other
than for Cause.  Section 5 of this Agreement continues to govern
Executive’s put right and the Company’s call right and the respect price of
such rights in the event of a termination of employment, except to the extent
inconsistent with this Section 6.

 

For
purposes of this Agreement, a “Change in Control” shall mean (i) the approval
by the shareholders of the Company of a plan of complete liquidation or
dissolution of the Company, (ii) the consummation of a sale of all or
substantially all of the assets of the Company; (iii) the consummation of any
transaction as a result of which any individual or entity (other than Cerberus,
General Atlantic Partners 76, L.P. or any of their related entities or
affiliates) becomes the “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Company
representing more than fifty percent (50%) of the total voting power of all
voting securities of the Company then issued and outstanding; or (iv) the consummation
of a merger, consolidation, reorganization or business combination, other than
a merger, consolidation, reorganization or business combination which would
result in the voting securities of the Company outstanding immediately prior
thereto continuing to represent (either by remaining outstanding or by being
converted into voting securities of the surviving entity) more than fifty
percent (50%) of the combined voting securities of the Company or the surviving
entity immediately after such merger, consolidation, reorganization of business
combination.

 

7. 
Confidentiality.  Executive acknowledges that by virtue of his
employment with the Company, he has or may be exposed to or has had or may have
access to confidential information of the Company regarding its businesses
(whether or not developed by Executive), including, but not limited to,
algorithms, source code, system designs, data formats, customer lists or
records, customer information, mark-ups, project materials, information
regarding independent contractors, marketing techniques, supplier information,
accounting methodology, Creations (as hereinafter defined) or other information
which gives, or may give, the Company an advantage in the marketplace against
its competitors (all of the foregoing are hereinafter referred to collectively
as the “Proprietary Information” except for information which was in the public
domain when acquired or developed by the Company, or which subsequently enters
the public domain other than as a result of a breach of this or any other
agreement or covenant). Executive further acknowledges that it would be
possible for Executive, upon termination of his employment with the Company, to
use the Proprietary Information to benefit other individuals or entities.
Executive acknowledges that the Company has expended considerable time and
resources in the development of the Proprietary Information and that the
Proprietary Information has been disclosed to or learned by Executive solely in
connection with Executive’s employment with the Company. Executive acknowledges
that the Proprietary Information constitutes a proprietary and exclusive
interest of the Company, and, therefore, Executive agrees that during the term
of his employment and after the termination thereof, for whatever reason,
anywhere in the world, Executive shall not directly or indirectly disclose the
Proprietary Information to any person, firm, court, governmental entity or
body, corporation or other entity or use the Proprietary Information

 

11

 

 

in any manner, except in
connection with the business and affairs of the Company or pursuant to a
validly issued and enforceable court or administrative order. In the event that
any court, administrative hearing officer or the like shall request or demand
disclosure of any Proprietary Information, Executive shall promptly notify the
Company of the same and cooperate with the Company to obtain appropriate
protective orders in respect thereof. Executive further agrees to execute such
further agreements or understandings regarding his agreement not to misuse or
disclose Proprietary Information or Creations (defined in Section 10
below) as the Company may reasonably request

 

8. 
Non-Solicitation/Non-Competition.  Executive covenants and agrees
that, while employed by the Company, and for a period of 12 months following
the termination of his employment for any reason, he shall not:

 

(a) 
directly or indirectly solicit for employment other than on behalf of the
Company, offer employment to, or employ any person who was an employee of the
Company within 6 months of such solicitation or offer;

 

(b) 
without the written consent of the Board, directly or indirectly engage or
assist any person engaging in, individually, or as an officer, director,
employee, agent, consultant, owner, partner, manager, member, principal, or in
any other capacity, or render any services to, a systems solutions provider,
developer of enterprise resource planning software or any other entity or
person who is engaged, directly or indirectly, in the promotion of software or
related services which are deemed by the Company to be directly competitive
with the software or related services offerings available from the Company,
including, but not limited to, the development, production, distribution,
sales, licensing, or marketing of software products (or the provision of
related services) designed to run on IBM AS/400 or HP 9000 computer platforms
or any successor platforms, or in an NT operating environment (“Competitive
Business”); provided, however, that the ownership by Executive of not more than
five percent (5%) of any class of equity security of any Competitive Business
shall not be deemed a breach of this Section provided such securities are
listed on a national securities exchange or quotation system or have been
registered under Section 12(g) of the Securities Exchange Act of 1934, as
amended. Upon the written request of Executive, the Board will advise Executive
whether or not a specific activity which Executive in contemplating would
violate the foregoing restriction, provided that (I) such request is made prior
to Executive engaging in such activity and (II) Executive provides the Board
with such information as the Board determines is necessary to make such
determination. The current and continuing effectiveness of any such
determination shall be conditioned on all such information provided by
Executive being complete and accurate in all material respects; or

 

(c) 
in any manner solicit, induce, or attempt to induce, or assist others to
solicit, induce or attempt to induce, any customer, supplier, contractor, or
client associated with the Company at such time or, in the case of any
customer, in the prior year, to terminate or materially and adversely alter its,
his or her association with the Company, or in any other manner interfere with
any agreement or contract between the Company and any such person.

 

9. 
Return of Materials.  Executive shall, at any time upon the request
of the Company, and in any event upon the termination of his employment, for
whatever reason, immediately return and surrender to the Company all originals
and all copies, regardless of medium, of all algorithms, source code, system
designs, data formats, forms, records, notes, memoranda, price lists, supplier
lists, brochures, project materials, sales materials, manuals, letterhead,
business cards and other property belonging to the Company or any of its
clients, as the case may be, created or obtained by Executive as a result of or
in the course of or in connection with Executive’s employment regardless of
whether such

 

12

 

items constitute
Proprietary Information, provided that Executive shall be under no obligation
to return price lists and other non-technical materials acquired from third
parties which are generally available to the public.  Executive
acknowledges that all such materials are, and will remain, the exclusive
property of the Company.

 

10.  Creations
and Other Matters.

 

(a) 
Executive agrees that all materials, inventions, discoveries, improvements or
the like which Executive, individually or with others, may originate, develop
or reduce to practice while employed with the Company relating to the business
or products of the Company, the Company’s actual or demonstrably anticipated
research or development or any work performed by Executive for the Company
(individually, a “Creation” and collectively, the “Creations”) shall, as
between the Company and Executive, belong to and be the sole property of the
Company. Executive hereby waives any and all “moral rights,” including, but not
limited to, any right to identification of authorship, right of approval on
modifications or limitation on subsequent modification, that Executive may have
in respect of any Creation. Executive further agrees, without further
consideration, to promptly disclose each such Creation to the Company and to
such other individuals as the Company may direct. Executive further agrees to
execute and to join others in executing such applications, assignments and
other documents as may be necessary or convenient to vest in the Company or any
client of the Company, as appropriate, full title to each such Creation and as
may be reasonably necessary or convenient to obtain United States and foreign
patents or copyrights thereon to the extent the Company or any client of the
Company, as appropriate, may choose.  Executive further agrees to testify
in any legal or administrative proceeding relative to any such Creation whenever
requested to do so by the Company, provided that the Company agrees to
reimburse Executive for any reasonable expenses incurred in providing such
testimony.

 

(b) 
The foregoing covenant shall not apply to any Creation for which no equipment,
supplies, facilities, or trade secret information of the Company was used and
which was developed entirely on Executive’s own time, unless (i) the Creation
relates to (A) the business of the Company or (B) any actual or reasonably
anticipated research or development of the Company or (ii) the Creation results
from any work performed by Executive for the Company.

 

11. 
Remedies.  Executive acknowledges that in the event that his
employment with the Company terminates for any reason, he will be able to earn
a livelihood without violating the foregoing restrictions and that his ability
to earn a livelihood without violating such restrictions is a material
condition to his employment with the Company. Executive acknowledges that
compliance with the covenants set forth in Sections 7 through 10 hereof is
necessary to protect the business, goodwill and Proprietary Information of the
Company and its clients and that a breach of these restrictions will
irreparably and continually damage the Company or its clients for which money
damages may not be adequate. Consequently, Executive agrees that, in the event
that he breaches or threatens to breach any of these covenants, the Company
shall be entitled to a temporary, preliminary or permanent injunction in order
to prevent the continuation of such harm. In addition, without limiting the
Company’s remedies for any breach of any restriction on the Executive set forth
in Sections 7 through 10 hereof, except as required by law, the obligation of
the Company to pay any amounts payable to the Executive under Section 5 of
this Agreement is contingent upon the Executive’s acting in accordance with the
covenants of Sections 7 through 10. Nothing in this agreement, however, shall
be construed to prohibit the Company from also pursuing any other remedy, the
parties having agreed that all remedies are to be cumulative.  The parties
expressly agree that the Company may, in its sole discretion, choose to

 

 

13

 

enforce the covenants in
Sections 7 through 10 hereof in part of to enforce any of said covenants to a
lesser extent than that set forth herein.

 

12. 
Survival.  Notwithstanding any other provision of this Agreement,
the Executive’s obligations in Sections 7 through 10 (to the extent provided therein)
shall survive the termination of this Agreement.

 

13. 
Revision.  The parties hereto expressly agree that in the event
that any of the provisions, covenants, warranties or agreements in this
Agreement are held to be in any respect an unreasonable restriction upon
Executive or are otherwise invalid, for whatsoever cause, then the court so
holding is hereby authorized to (a) reduce the territory to which said
covenant, warranty or agreement pertains, the period of time in which said
covenant, warranty or agreement operates or the scope of activity to which said
covenant, warranty or agreement pertains or (b) effect any other change to the
extent necessary to render any of the restrictions contained in this Agreement
enforceable.

 

14. 
Confidentiality.  Executive agrees that he will not disclose the
terms of this Agreement to anyone other than his spouse and legal counsel,
except as such disclosure may be required for legal, accounting or tax advice
and reporting purposes.

 

15. 
Dispute Resolution.  In the event of any dispute or claim relating
to or arising out of this Agreement (including, but not limited to, any claims
of breach of contract, wrongful termination or age, sex, race or other
discrimination), Executive and the Company agree that all such disputes shall
be fully and finally resolved by binding arbitration conducted by the American
Arbitration Association (“AAA”) in Chicago, Illinois in accordance with the
AAA’s National Rules for the Resolution of Employment Disputes. Employee
acknowledges that by accepting this arbitration provision he is waiving any
right to a jury trial in the event of such dispute; provided, however, that
this arbitration provision shall not apply to claims by the Company seeking
injunctive or other equitable relief. The arbitrator may, but is not required,
to order that the prevailing party shall be entitled to recover from the losing
party its attorneys’ fees and costs incurred in any arbitration arising out of
this Agreement.

 

16. 
Assistance in Litigation.  Executive shall, during and after
termination of his employment, upon reasonable notice, furnish such truthful
information and proper assistance to the Company as may reasonably be required
by the Company in connection with any litigation in which it or any of its officers,
directors or affiliated entities is, or may become a party. If such assistance
is required after the termination of Executive’s employment, then the Company
shall reimburse Executive for his reasonable and necessary expenses incurred at
the request of the Company upon submission of appropriate supporting documents
plus a per diem consulting fee equal to his daily pro-rata Base Salary.

 

17. 
Interpretation.  Executive and the Company agree that this
Agreement shall be interpreted in accordance with and governed by the laws of
the State of Illinois.

 

18. 
Successors and Assigns.  This Agreement shall inure to the benefit
of and be binding upon the Company and its successors and assigns. In view of
the personal nature of the services to be performed under this Agreement by
Executive, he shall not have the right to assign or transfer any of his rights,
obligations or benefits under this Agreement, except as otherwise noted herein.

 

 

14

 

 

19. 
Notice.  Any notice provided for in this Agreement shall be in
writing and shall be deemed given on the date it is delivered in person or sent
by facsimile, or mailed (by certified mail, return receipt requested) or sent
via overnight delivery to the other party and addressed,

 

in
the case of the Company, to:

 

SSA Global Technologies,
Inc.

500 West Madison Street

Chicago, Illinois 60661

Facsimile: (312) 474-7451

Attn: General Counsel

 

With copies to:

 

Cerberus Capital
Management, L.P.

450 Park Avenue

New York, New York 10022

Facsimile: (212) 891-1540

Attn: Mark Neporent

 

And

 

Schulte Roth & Zabel
LLP

919 Third Avenue

New York, New York 10022

Facsimile: (212) 593-5955

Attn: Robert B. Loper, Esq.

 

and in the case of
Executive to:

 

Michael Greenough

711 Pintail Court

Granbury, Texas 76049

Facsimile: (312) 474-7451

 

With a copy to:

 

Michael H. Woolever

Foley & Lardner

321 North Clark Street

Suite 2800

Chicago, Illinois 60610

Facsimile: (312) 832-4700

 

Either
party may designate a different address by giving written notice of a change of
address in the manner provided above.

 

15

 

 

20. 
Validity.  If any one or more of the provisions (or any part
thereof) of this Agreement shall be held invalid, illegal or unenforceable in
any respect, the validity, legality and enforceability of the remaining
provisions (or any part thereof) shall not in any way be affected or impaired
thereby. Each term and provision of this agreement shall be valid and
enforceable to the fullest extent permitted by law and any invalid, illegal or
unenforceable term or provision shall be deemed replaced by a term or provision
that is valid and enforceable and that comes closest to expressing the
intention of the invalid, illegal or unenforceable term or provision.

 

21. 
Entire Agreement.  This Agreement constitutes the entire employment
agreement between Executive and the Company regarding the terms and conditions
of his employment, except for any stock, stock option or other equity rights
agreement, executed in conjunction with or subsequent to this Agreement,
between Executive and the Company under the Company’s 2003 Equity Incentive
Plan, as amended and in effect from time to time or any successor plan. This
Agreement supersedes all prior negotiations, representations or agreements
between Executive and the Company, whether written or oral, concerning
Executive’s employment by the Company and entitlement to stock, stock options
or equity rights in the Company, including, but not limited to, the Prior
Agreement and the Option Rights. In entering into this agreement, Executive has
consulted with independent legal counsel and has not relied upon any
representation not set forth herein.

 

22. 
Modification. This Agreement may only be modified or amended by a
supplemental written agreement signed by Executive and the Company.

 

23. 
Indemnification. The Company agrees, to the extent permitted by
applicable law and its organizational documents, to indemnify, defend and hold
harmless the Executive from and against any and all losses, suits, actions,
causes of action, judgments, damages, liabilities, penalties, fines, costs or
claims of any kind or nature (“Indemnified Claim”), including reasonable legal
fees and related costs incurred by Executive in connection with the preparation
for or defense of any Indemnified Claim, whether or not resulting in any
liability, to which Executive may become subject or liable or which may be
incurred by or assessed against Executive, relating to or arising out of his
employment by the Company or the services to be performed pursuant to this
Agreement, provided that the Company shall only defend, but not indemnify or
hold Executive harmless, from and against an Indemnified Claim in the event
there is a final, non-appealable, determination that Executive’s liability with
respect to such Indemnified Claim resulted from Executive’s willful misconduct
or gross negligence. The Company’s obligations under this section shall be
in addition to any other right, remedy or indemnification which Executive may
have or be entitled to at common law or otherwise.

 

 

16

 

 

IN WITNESS WHEREOF, the
parties have executed this Agreement as of the date and year written below.

 

	
   

  	
  SSA
  Global Technologies, Inc.

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  By:

  	
  /s/
  Kirk
  J. Isaacson

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  KIRK
  J. ISAACSON

  	
   

  
	
   

  	
  Its:

  	
  EXECUTIVE
  VICE PRESIDENT & GENERAL COUNSEL

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  	
  /s/
  Michael
  Greenough

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Michael
  Greenough

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Solely
  with respect to Section 4(f)

  Cerberus Capital Management, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Mark A.
  Neporant

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  General
  Atlantic Partners 76, L.P

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  William Ford

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Its

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

 

 

17

EXHIBIT 10.1 (EXHIBIT A)

Final
Execution Copy

 

 

SSA GLOBAL TECHNOLOGIES,
INC.

2003 EQUITY INCENTIVE PLAN

STOCK OPTION AGREEMENT

This Stock Option Agreement
(“Agreement”) is made and entered into, as of the Grant Date set forth on the
signature page hereto, by and between SSA Global Technologies, Inc., a Delaware
Corporation (“Company”), and Michael Greenough (“Optionee”).

R E C I T A L S

A.    Company has established and maintains the
SSA Global Technologies, Inc. 2003 Equity Incentive Plan (“Plan”) in order to
further the growth, development, and financial success of the Company, and its
Subsidiaries, by providing equity based incentives and equity ownership
opportunities to certain directors, officers, and employees of, and consultants
to, the Company.

B.    Optionee is currently employed or retained
by Company or a Subsidiary pursuant to the terms and conditions of the Amended
and Restated Employment Agreement between Optionee and the Company, executed
concurrently with this Agreement (the “Employment Agreement”) and references
the option to be granted pursuant to this Agreement (as described on the
signature page attached hereto) to purchase shares of the Company’s common
stock, par value $0.01 per share.

NOW, THEREFORE, the parties
hereto, intending to be legally bound, hereby agree as follows:

1.     Definitions.  Initially capitalized terms used in this
Agreement have the meaning given to such terms in the Plan, except as expressly
otherwise herein provided.

2.     Grant of Option.  Company, pursuant to the Plan, hereby grants
to Optionee an option (as described on the signature page attached hereto) (the
“Option”) to purchase all or any part of the number of shares of common stock,
par value $0.01 per share, of the Company set forth on the signature page
hereof (“Option Shares”) at the Option Price per share set forth on the
signature page hereof, subject to the terms and conditions of the Plan and
further subject to the terms and conditions hereinafter set forth.  The Option is not intended to be an
incentive stock option under Section 422 of the Internal Revenue Code of 1986,
as amended.

3.     Terms and Conditions of Grant.

(a)   Vesting.  The Option shall vest and become exercisable in accordance with
the Paragraph 4(e) of the Employment Agreement.

(b)   Vesting Schedule. The Option shall
vest and become exercisable in accordance with the Paragraph 4(e) of the
Employment Agreement.

(c)   Term of Option.  The term of the Option shall expire in
accordance with Paragraph 4(e) and Section 5 of the Employment Agreement.

 

 

(d)   Manner of Exercise.  The Optionee may, subject to the limitations
in this Agreement and the Plan, exercise all or any portion of the Option that
has vested.  In order to exercise the
Option, Optionee shall deliver to the Company a written notice specifying the
number of Option Shares to be purchased, accompanied by payment in full of the
entire Option Price with respect to such Option Shares and an amount equal to
the aggregate minimum federal, state and local income and employment taxes
which the Company is obligated to withhold and deposit on behalf of Optionee
with respect to such exercise (“Withholding Obligation”).  The Committee may, in its discretion, permit
Optionee to pay all or part of the Option Price or Withholding Obligation of
Optionee by delivering to the Company for cancellation, Option Shares or an
unexercised, but then exercisable, portion of the Option to purchase Option
Shares, provided that only whole Option Shares or a portion of the Option
representing whole Option Shares may be so used for payment and any portion of
the Option Price or Withholding Obligation which can not be satisfied with
whole Option Shares (or a portion of the Option representing whole Option
Shares) must be paid in cash.  No portion
of the Option may be exercised after it has expired pursuant to Section 3(c)
above or the termination of Optionee’s rights with respect to the Option
pursuant to Section 4 below.

(e)   Adjustment in Capitalization.  In the event of any dividend or other
distribution (in whatever form), recapitalization, stock split, reverse stock
split, reorganization, merger, consolidation, split-up, spin off, combination,
repurchase, or exchange of Common Stock or other securities of the Company,
issuance of warrants or other rights to purchase Common Stock or other
securities of the Company, or other similar corporate transaction or event
which affects the Common Stock, the Committee shall adjust the terms of this
Agreement and the Option, to the extent necessary, in its sole discretion, in
order to prevent dilution or enlargement of the benefits or potential benefits
intended to be made available under the Plan or this Agreement.  In no event shall the Committee adjust the
terms of this Agreement or the Option in a manner which would cause the Option
to be subject to variable accounting under then current generally accepted
accounting principles applicable in the United States.

4.     Exercise in Event of Death or
Termination of Employment.

(a)   Termination of Employment.  For purposes of this Agreement, Optionee’s
employment shall be deemed to have terminated at the close of business on the
day immediately before the first day on which he is no longer employed by the
Company or a Subsidiary for any reason, provided that the Committee may
determine in one or more cases that a leave of absence granted by the Committee
shall not be deemed a termination of employment for purposes of this Option.

(b)   Termination of Employment Without Cause or
With Good Reason.  The status of the
Option in the event of a termination of employment shall be in accordance with
Paragraph 5 of the Employment Agreement.

(c)   Death or Disability.  The status of the Option in the event of a
termination of employment shall be in accordance with Paragraph 5 of the
Employment Agreement.

(d)   Other Terminations.  The status of the Option in the event of a
termination of employment shall be in accordance with Paragraph 5 of the
Employment Agreement.

 

2

 

5.     Change in Control.

The Option shall be treated
in accordance with Paragraph 6 of the Employment Agreement.

6.     Limitations on Transferability of
Options.

(a)   General Limitation.  The Option shall not be transferable by the
Optionee (or any successor or assign) other than by will or, if Optionee dies
intestate, by the laws of descent and distribution of the state of his domicile
at the time of his death, and (except as otherwise provided in Section 4
hereof) the Option shall be exercisable only by Optionee during Optionee’s
lifetime and only while Optionee is employed by the Company or a
Subsidiary.  The foregoing
notwithstanding, with the written consent of the Committee, which consent may
or may not be given by the Committee in its sole discretion, Optionee may transfer,
for no consideration, all or any portion of the Option to a spouse, child, or
grandchild of the Optionee, or to a trust for the benefit of the Optionee or a
spouse, child or grandchild of the Optionee, or to a family partnership or
limited liability company or partnership in which the Optionee, a trust of
which the sole beneficiaries are the Optionee, or the Optionee’s spouse,
children or grandchildren, or the Optionee or the Optionee’s spouse, children
or grandchildren are the sole partners or members.

(b)   Beneficiaries.  The person whose name appears on the
signature page hereof after the caption “Beneficiary” or any successor
designated by Optionee in accordance herewith (“Beneficiary”) shall be entitled
to exercise the Option, to the extent it is exercisable after the death of
Optionee, for the period provided in Section 4.  Optionee may from time to time revoke or  change his beneficiary designation without
the consent of any prior designee by filing a new designation with the
Committee which administers the Plan. 
The last designation received by the Committee shall be controlling,
provided that no designation received by the Committee after the date of
Optionee’s death shall be effective.  If
no valid designation is in effect at the time of Optionee’s death, the
Beneficiary shall be deemed to be Optionee’s estate.  Upon the death of the Beneficiary, following the death of the
Optionee, the Option shall immediately expire and terminate.

7.     Investment Representation of Optionee.  Optionee hereby represents and warrants that
(a) any Option Shares purchased pursuant to the exercise of the Option will be
purchased for investment for his own account and not with a view to, or for
sale or other disposition in connection with, any distribution thereof, (b) he
has been provided with a copy of the Plan and any Option Shares he purchases
will be purchased with full knowledge of and subject to the restrictions on
transfer and other restrictions contained in this Agreement and the Plan and
(c) he understands that the Option Shares are closely-held and may not be sold
or otherwise transferred except pursuant to an effective registration statement
under applicable federal and state securities laws or pursuant to an exemption
from registration under such laws.

8.     Restrictions on Shares Purchased upon
Exercise of Option.

(a)   Optionee shall not, during his lifetime,
sell, assign, mortgage, hypothecate, transfer, pledge, create a security
interest in or lien on, encumber, gift, place in trust (either

3

 

voting or other), or
otherwise dispose of the Option or any Option Shares acquired pursuant to
exercise of the Option, or any portion thereof or interest therein, other than
in accordance with and as expressly permitted by this Agreement.  No purported sale, assignment, mortgage,
hypothecation, transfer, pledge, encumbrance, gift, transfer in trust, or other
disposition of, or creation of a security interest in or lien on, any of the
shares by any holder thereof in violation of this Agreement will be valid and
the Company will not transfer any of the shares on its books nor will any such
shares be entitled to vote, nor will any dividends be paid thereon, unless and
until there has been compliance with the terms of this Agreement.

(b)   Prior to an Initial Public Offering, Optionee
shall only sell, assign, gift, transfer or otherwise dispose of the Option
Shares or any portion thereof to the Company or its designee.  Optionee may request that the Company
purchase Option Shares from Optionee, but in such event the Company shall have
no obligation to purchase the Option Shares.

(c)   After an Initial Public Offering, Optionee
shall only sell, assign, gift, transfer or otherwise dispose of the Option
Shares acquired pursuant to exercise of this Option, or any portion thereof, if
prior to such transfer the Company receives a favorable opinion of legal
counsel, reasonably acceptable to the Company, to the effect that the transfer
is being made pursuant to a valid exemption from registration under the
Securities Act of 1933, as amended, and all applicable state securities laws.

(d)   For purposes of this Agreement, “Initial
Public Offering” shall mean the first bona fide firm commitment underwritten
public offering of shares of Common Stock pursuant to an effective registration
statement filed under the Securities Act and in which the underwriting is lead
managed by an internationally recognized investment banking firm and the shares
of Common Stock are listed on The NASDAQ Stock Market, Inc. or other
internationally recognized stock exchange or trading system.

9.     Call Right.  The Company shall have a call right with
respect to the Option Shares in accordance with Paragraph 5 of the Employment
Agreement.  The Company’s rights under
this Section 9 shall terminate upon the occurrence of an Initial Public
Offering.

10.   (a)   Drag-Along
Rights.  Prior to the consummation
of an Initial Public Offering, in the event that any Selling Stockholders
propose to sell or exchange all of their shares of common stock, in a bona fide
Sale Transaction, then if so requested by the Majority of the Selling
Stockholders, Optionee agrees to sell or exchange all or a portion of the
Option Shares on the same terms and subject to the same conditions and at the
same price as the Selling Stockholders are selling or exchanging their shares
and to execute such agreements or other documents and to take such other
actions as may be reasonably necessary to effect such sale or exchange.  In addition, to the extent stockholder
approval is required, Optionee shall vote his shares in favor of any Sale
Transaction, or any sale, conveyance, exchange or transfer of all or
substantially all of the assets of the Company, to the extent requested to do
so by a Majority of the Selling Stockholders.

4

 

(b)           Tag-Along Rights.

(i)            The Company hereby agrees to obtain
the following tag-along rights for the benefit of the Optionee:  Prior to the consummation of an Initial
Public Offering, if (i) either Cerberus Capital Management, L.P. and its affiliates
(“Cerberus”) or General Atlantic Partners 76, L.P. and its affiliates (“GA”)
propose to sell its shares of common stock of the Company (or securities
convertible into shares of common stock of the Company), representing at least
15% of all of the then outstanding shares of common stock of the Company, on a
fully-diluted basis, to a third-party purchaser or acquirer (other than
Cerberus or GA) (a “Third Party Buyer”), in a single transaction or series of
related transactions (a “Tag-along Transaction”), and (ii) to the extent that
either Cerberus or GA is entitled to exercise its drag-along right pursuant to
the terms of Section 10(a) hereof in connection therewith, it does not elect to
do so, the Optionee shall have the right (subject to the provisions of this
Section 10(b)) to require the Third Party Buyer in the Tag-along Transaction to
purchase from the Optionee, on the same terms and subject to the same
conditions and at the same price at which Cerberus or GA (as applicable, the
“Initiating Seller”) is selling its shares in the Tag-along Transaction, a
number of shares equal to (i) the total number of shares of common stock being
purchased by the Third Party Buyer in the Tag-along Transaction, multiplied by
(ii) a fraction, (A) the numerator of which is the number of shares of common
stock owned by the Optionee and/or subject to vested Options held by the
Optionee and (B) the denominator of which is the total number of shares owned
on a fully-diluted basis, by the Initiating Sellers, the Optionee and any other
persons entitled to assert tag-along or analogous rights in connection with
such Tag-along Transaction; provided that the Optionee shall execute such
agreements or other documents and to take such other actions as may be
reasonably necessary to effect such sale. 
Notwithstanding any provision contained herein to the contrary, the
tag-along right set forth in this Section 10(b) shall not be exercisable in the
event that the Tag-along Transaction results in a Change in Control.  In such event, Section 5 hereof shall apply
to such Tag-along Transaction.

(ii)           Optionee shall be entitled to receive
at least 15 days notice prior to any Tag-along Transaction, setting forth the
proposed amount and form of consideration and any other material terms and conditions
of the proposed sale, including the terms and conditions of payment offered by
the Third Party Buyer and the number of shares which Optionee is entitled to
sell in such Tag-along Transaction (based on the books and records of the
Company) (the “Maximum”).  The Optionee
must exercise his rights under this Section 10(b) within 10 days following
receipt of the foregoing notice by delivery of a written notice to the Company
and the Initiating Seller(s) specifying the number of shares that Optionee wishes
to sell in such Tag-along Transaction (up to the Maximum) and agreeing to be
bound by the terms specified in the foregoing notice; provided that
Optionee may waive his rights under this Section 10(b) prior to the expiration
of such 10 day period by giving written notice to the Company and the
Initiating Seller(s).

(c)   Limited Put Right.

                                (i)            Notwithstanding
anything contained herein to the contrary, Cerberus and/or GA may transfer any
or all of their shares in the Company to a Third Party Buyer without regard to
the tag-along obligations set forth under Section 10(b), provided  that,
in any such case, Cerberus or GA (as the case may be) shall, not later than the
consummation of such sale,

5

irrevocably offer by written
notice to purchase from the Optionee (on the terms described in clause (ii),
below) such number of shares as Optionee would have been entitled to sell in
such transaction under Section 10(b) (the “Put Right”), as calculated based on
the number of shares being transferred by Cerberus or GA, as the case may be
(the “Subject Shares”).  In the event
that Optionee wishes to exercise his Put Right, (x) Optionee shall provide
Cerberus or GA, as the case may be, with a written notice (the “Put Notice”) on
or before the date that is 10 days after the delivery to it of the foregoing
written notice, to the effect that Optionee wishes to sell his Subject Shares
and (y) Cerberus or GA, as the case may be, shall be obligated to purchase such
Subject Shares from the Optionee pursuant to this Section 10(c) in lieu of
compliance with Section 10(b).  The Put
Notice shall contain the number of Subject Shares that Optionee requires
Cerberus or GA, as the case may be, to purchase, such number not to exceed in
any event the Maximum that the Optionee would have been entitled to sell in
such transaction under Section 10(b).

                                (ii)           The
closing of any sale of shares under this Section 10(c) shall take place at the
executive offices of the Company no later than 15 days following the
consummation of the sale of shares by Cerberus or GA, as the case may be, to
the Third Party Buyer or at such other time as the parties to the transaction
may agree.  At such closing, (x)
Optionee shall deliver to Cerberus or GA, as the case may be, certificates
representing the shares being sold, duly endorsed for transfer and accompanied
by all requisite transfer taxes, if any, and such shares shall be free and
clear of any liens (other than those arising hereunder and those attributable
to actions by the purchaser thereof) and Optionee shall so represent and
warrant, and shall further represent and warrant that he is the sole beneficial
and record owner of such shares and (y) Cerberus or GA, as the case may be,
shall deliver to Optionee payment in full for the shares purchased by Cerberus
or GA, as the case may be.  The
consideration paid to Optionee shall be in the same form, proportion (if the
consideration is a combination of both cash and securities) and amount per
share as the consideration paid by the Third Party Buyer to Cerberus or GA, as
the case may be.

                                (iii)          Notwithstanding any notice given
hereunder in respect of a Put Right, no Put Right shall be effective against
Cerberus or GA, as the case may be, unless and until the sale to the Third
Party Buyer that gave rise to such notice is consummated.

(d)   Definitions.

For the purpose of this
Section 10, “Selling Stockholders” means stockholder(s) of the Company who own
securities representing more than a majority of the combined voting power of
the Company and who determine to exercise their rights under this Section
10.  For purposes hereof, Selling
Stockholders shall include any stockholder(s) (other than Optionee and other
optionees under the Plan) who are obligated to participate in the relevant
transaction as the result of “drag-along” or similar contractual provisions.

For the purpose of this
Section 10, “Majority of the Selling Stockholders” means Selling Stockholders
who own securities representing a majority of the combined voting power of the
Company that is controlled by all of the Selling Stockholders.

For the purposes of this
Section 10, “Sale Transaction” means (a)(i) the merger or consolidation

6

of
the Company into or with one or more Persons, (ii) the merger or consolidation
of one or more Persons into or with the Company, or (iii) the consummation of a
tender offer or other business combination transaction where, in each case, any
equity securities of the Company that existed immediately prior to the
consummation of such transaction are converted into or exchanged for the right
to receive cash, securities or other property or (b) the voluntary sale,
conveyance, exchange or transfer of voting securities of the Company to another
Person(s) in a single transaction or series of related transactions.

(e)   Notwithstanding any provision contained
herein to the contrary, the provisions of this Section 10 shall terminate and
cease to be of any force and effect upon the effectiveness of an Initial Public
Offering.

11.   Optionee Covenants.  As a material inducement to the Company to
make the grant of the Option, Optionee represents and warrants that he is bound
by the covenants set forth in Paragraphs 7 through 10 of the Employment
Agreement.

12.   Incorporation of Terms of Plan.  The terms of the Plan are incorporated
herein by reference and Optionee’s rights hereunder are subject to such
terms.  To the extent the terms of the
Plan are inconsistent with the terms of this Agreement, the terms of this
Agreement shall control.  Optionee
hereby agrees to comply with all requirements of the Plan.

13.   Miscellaneous Provisions.

(a)   Governing Law.  This Agreement shall be governed by and
construed in accordance with the laws of the State of Illinois, without giving
effect to any principles of conflict of laws thereof.

(b)   Amendment and Termination.  The Board or Committee may at any time
amend, alter, suspend, discontinue or terminate this Agreement, provided that
no such action that materially changes or in any way impairs the rights of the
Optionee under this Agreement shall be effective unless consented to by the
Optionee in writing or unless such action is expressly permitted under this
Agreement.

(c)   Gender.  Except where otherwise indicated by context, any masculine term
used herein shall also include the feminine.

(d)   Entire Agreement.  This Agreement, the Plan and the Employment
Agreement constitute the entire agreement between the parties with respect to
the subject matter hereof and thereof, merging any and all prior agreements and
supersedes all prior negotiations, representations, offer letters, employment
agreements, other agreements or any other written or oral communications
concerning the grant of options.

(e)   Severability.  In the event any provision of this Agreement
shall be held illegal or invalid for any reason, the illegality or invalidity
shall not affect the remaining provisions of the Agreement and the Agreement
shall be construed and enforced as if the illegal or invalid provision had not
been included.

7

 

IN
WITNESS WHEREOF, the parties have executed this Agreement as of the Grant Date.

	
   

  	
  SSA
  Global Technologies, Inc.

  
	
   

  	
   

  
	
   

  	
  /s/
  Kirk J. Isaacson

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Kirk
  J. Isaacson

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Executive
  Vice President & General Counsel

  
	
   

  	
   

  
	
   

  	
  /s/
  Michael Greenough

  
	
   

  	
  Michael
  Greenough

  
	
   

  	
   

  
	
  Grant
  Date: July 31, 2003

  
	
   

  	
   

  
	
   

  	
   

  
	
  Option
  Expiration: July 30, 2013

  
	
   

  	
   

  
	
   

  	
   

  
	
  No.
  of Shares: 203,715

  
	
   

  	
   

  
	
  Initial
  Option Price:   $29.92 per share

  
	
   

  	
   

  
	
   

  	
   

  
	
  To
  be completed by Optionee:

  
	
   

  	
   

  
	
  Beneficiary:   Jean Greenough

  
	
   

  	
   

  
	
   

  	
   

  
	
  Beneficiary
  Address:

  
	
   

  	
   

  
	
  212
  W. Washington #1105, Chicago, 60606

  
	
   

  	
   

  
	
   

  	
   

  
	
  Beneficiary
  Tax EIN:

  	
   

  	
   

  
					

 

8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}]]