Document:

1990

Exhibit

10.1(ap)

 

 

 

 

 

SAUER-DANFOSS INC.

 

ANNUAL OFFICER PERFORMANCE INCENTIVE PLAN

 

January 1, 2002

Restatement

 

 

 

 

SAUER-DANFOSS INC.

ANNUAL OFFICER PERFORMANCE INCENTIVE PLAN

January 1, 2002 Restatement

 

 

The Sauer-Danfoss Inc. Annual Officer Performance Incentive Plan is

designed to achieve the following objectives:

 

a)              Link variable pay to strategic business objectives;

b)             Create a more balanced focus on profitability and

growth;

c)              Create a better line-of-sight on the measures of

performance and, therefore, improve the motivational qualities of the Plan;

d)             Reward the on-going demonstration of alignment with

the Company culture;

e)              Facilitate the attraction and retention of talent; and

f)                Provide a competitive compensation opportunity.

 

 

ARTICLE I

DEFINITIONS

 

For the purposes of this Plan, the following words and phrases shall

have the meaning indicated, unless a different meaning is clearly required by

the context:

 

1.                    The “Plan” means this Sauer-Danfoss Inc. Annual

Officer Performance Incentive Plan with all amendments and supplements

hereafter made.

 

2.                    The “Company” means Sauer-Danfoss Inc., a Delaware

corporation, its successors, and the surviving companies or corporations

resulting from any merger or consolidation of Sauer-Danfoss Inc. with any other

corporation or partnership.

 

3.                    A “Subsidiary” means any corporation or partnership,

the equity of which is directly or indirectly majority owned by the Company.

 

4.                    The “Compensation Committee” means the Compensation

Committee of the Board of Directors of the Company, as the same shall from time

to time exist.

 

5.                    A “Participant” shall mean any officer who is eligible

to participate in the Plan as provided in Article II.

 

6.                    The “Plan Year” means the fiscal year of the Company,

which as of January 1, 2002 coincides with the calendar year.

 

7.                    An “Incentive Compensation Award” shall mean the cash

payment that may be awarded to a Participant pursuant to the Plan with respect

to any Plan Year.

 

2

 

 

8.                    A “Beneficiary” shall mean the person or persons

designated by a Participant in accordance with the Plan to receive payment of

the Participant’s Incentive Compensation Award in the event of the death of the

Participant prior to payment of the Participant’s Incentive Compensation Award.

 

9.                    The “Target Incentive Opportunity” means the

percentage of the Participant’s base salary paid from the Participant’s

effective date of participation through the end of the Plan Year, which will be

paid if the target Performance Measures are achieved.  Should a Participant have periods of illness or injury during the

Plan Year, payments such as sick leave or disability pay, which are paid to the

Participant in lieu of base salary during those periods, will be considered as base

salary for the purpose of computing Incentive Compensation Awards.

 

10.              “Performance Measures” shall mean the measurements of

Profitability (Return on Net Assets pre-tax/pre-interest) and Revenue Growth

upon which a Participant’s Incentive Compensation Award will be based.  These measures will be part of a performance

matrix that will be communicated to Plan Participants on an annual basis.

 

11.              “GBU RoNA (Global Business Unit Return on Net Assets)

for any Global Business Unit is defined as GBU EBIT for the fiscal year of the

Global Business Unit, divided by the Average Net Assets of the Global Business

Unit.  GBU EBIT and Average Net Asset

amounts of the Global Business Unit are determined from internal, consolidated

financial statements, which support the quarter-end and year-end audited

financial statements for Sauer-Danfoss Inc.

 

12.              “Company RoNA” (Company Return on Net Assets) is

defined as EBIT for Sauer-Danfoss Inc., divided by the Average Net Assets of

Sauer-Danfoss Inc.  Sauer-Danfoss Inc.

EBIT and Average Net Asset amounts are determined from the year-end, audited

consolidated financial statements or from the quarter-end unaudited,

consolidated financial statements as appropriate.

 

13.              “EBIT” (Earnings Before Interest and Taxes) for

Sauer-Danfoss Inc. or for any Global Business Unit shall be defined as net

income adjusted to remove any income tax expense or benefit and to remove any

Net Interest Expense.

 

14.              “Net Interest Expense” for Sauer-Danfoss Inc. or for

any Global Business Unit shall be defined as interest expense, net of interest

income, on interest bearing indebtedness plus minority interest expense, net of

minority interest income.

 

15.              “Average Net Assets” for Sauer-Danfoss Inc. or for any

Global Business Unit shall be defined as the average of the Net Assets for the

four quarters in the fiscal year (i.e. Net Assets at the beginning of the year

and at the end of the next four quarters divided by five).  For purposes of this computation, “Net Assets”

is defined as total equity, including minority interests in equity, plus total

interest bearing indebtedness

 

 

3

 

 

16.              “Participant’s Company Factor” shall mean a total

company-weighting factor, from 0% to 100%, assigned by the Compensation Committee

to the Participant for the Plan Year. 

The sum of the Participant’s Company Factor plus the Participant’s GBU

factor shall equal 100%.

 

17.              “Participant’s GBU Factor” shall mean a GBU weighting

factor, from 0% to 100% assigned by the Compensation Committee to the

Participant for the Plan Year.  The sum

of the Participant’s Company Factor plus the Participant’s GBU Factor shall

equal 100%.

 

 

ARTICLE II

ELIGIBILITY AND MEASUREMENT BASIS

 

The Chief Executive Officer shall recommend officer(s) of the Company

or of any Subsidiary to become Participants in the Plan to the Compensation

Committee.  The Compensation Committee

shall then, in its discretion, select the officers that shall participate in

the Plan and the Chief Executive Officer shall notify such selected officers of

their selection in writing. 

Participation for each officer shall be determined on an annual basis.

 

The Chief Executive Officer shall also recommend to the Compensation

Committee the Global Business Unit, if any, that will be used to determine each

Participant’s Incentive Compensation Award. 

The Chief Executive Officer will also recommend to the Compensation

Committee the Participant’s Company Factor and the Participant’s GBU Factor, as

defined above.  Once determined by the

Compensation Committee, in its discretion, the applicable Global Business Unit,

the Participant’s Company Factor and the Participant’s GBU Factor will be

communicated to each Participant at the same time as the selection

notification.

 

In certain instances, Participants may transfer between Global Business

Units during the course of a Plan Year. 

The Compensation Committee will handle participants in this situation on

a case-by-case basis.

 

 

ARTICLE III

INCENTIVE COMPENSATION AWARDS

 

A substantial portion of any annual Incentive Compensation Award will

be determined by Profitability and Revenue Growth measures.

 

1.               Profitability will be measured in relation to the

Return on Net Assets (RoNA) for the twelve-month period with respect to which

the Award relates.

 

 

4

 

 

2.               Revenue growth will be measured as sales growth on a

comparable basis, for the Plan Year, as compared to the previous Plan

Year.  Sales means total third party

trade sales, less effects of any acquisitions.

 

Revenue growth performance targets are established at

the beginning of the Plan Year based on an “assumed composite market growth”

for the segments Sauer-Danfoss serves. 

The assumed growth is used for both the Company and GBU revenue growth

performance targets.  At the end of the

Plan Year, “actual composite market growth” will be determined, and performance

targets adjusted.  For example, if the

Company revenue growth performance target set at the beginning of the year was

10% (assuming a composite market growth of 5%) and the actual composite market

growth for the year, as determined following the end of the Plan Year, was only

1%, then the Company revenue growth performance target for the Plan Year in

question shall be reduced to 6%.

 

The purpose of the year-end adjustment feature is to

take into consideration the external market factors that may influence revenue

growth performance for the Plan Year. 

It is the Company’s belief that Plan Participants should not be

penalized as a result of unforeseen negative conditions in the marketplace, nor

should Participants receive a windfall when an unforeseen upturn in the market

occurs during the Plan Year.

 

3.               Achievement of target Performance Measures will result

in an Incentive Compensation Award for the twelve-month period to which it

relates equal to the Target Incentive Opportunity.

 

Achievement of

Performance Measures exceeding target will result in an Incentive Compensation

Award for the twelve-month period to which it relates up to 200% of the Target

Incentive Opportunity.

 

4.               The Incentive Compensation Target Award may be

increased or decreased by as much as 20% on a discretionary basis.  The degree to which the incentive awards

will be adjusted, if at all, shall be recommended by the Chief Executive Officer

to the Compensation Committee and the Compensation Committee shall then

determine, in its discretion, the actual adjustment, if any, to be made.

 

5.               The total Incentive Compensation Award granted to a

Participant shall be paid in cash to the Participant on or before May 1 of the

year following the Plan Year with respect to which such total Incentive

Compensation Award is granted.

 

6.     Forfeiture. 

Notwithstanding anything to the contrary contained in the Plan, subject

to the approval of the Compensation Committee, the right of a Participant to

receive an Incentive Compensation Award which has been granted but which has

not been paid will be forfeited in the event the Participant’s employment with

the Company or any Subsidiary is terminated under circumstances other than

death, permanent and

 

 

5

 

 total

disability, normal retirement or other retirement under conditions of

eligibility for a retirement benefit. 

Furthermore, if the Compensation Committee, in its sole discretion,

determines that a Participant has engaged in activities constituting gross

misconduct, the right of such Participant to be granted an Incentive

Compensation Award will be forfeited.

 

 

ARTICLE IV

ADMINISTRATION

 

The Compensation Committee of the Board of Directors shall be

responsible for the general administration of the Plan and for carrying out the

provisions hereof and shall have all such powers, authorities and

responsibilities expressly retained by it herein and as may be necessary to

carry out the provisions of the Plan, including the power to determine all

questions relating to eligibility for and the amount of an Incentive

Compensation Award, all questions pertaining to claims for benefits and

procedures for claim review, and the power to resolve any and all other

questions arising under the Plan, including any questions of construction.  The Compensation Committee may designate

such person or persons as it shall determine to carry out any such powers,

authorities or responsibilities.

 

The actions taken and the decisions made by the Compensation Committee

hereunder shall be final and binding upon all interested parties.  The Compensation Committee may, as to all

questions of accounting, rely conclusively upon any determination made by the

independent public accountants for the Company.

 

 

ARTICLE V

AMENDMENT AND TERMINATION

 

The Compensation Committee reserves the right to amend or terminate the

Plan at any time by written action of the Compensation Committee; provided,

however, that no such action shall adversely affect any Participant or

Beneficiary with respect to the amount of an Incentive Compensation Award

theretofore granted.

 

 

6

 

 

ARTICLE VI

MISCELLANEOUS

 

1.                    Nonalienation. 

No Participant or Beneficiary shall in any manner encumber or dispose of

the right to receive any payment of an Incentive Compensation Award

hereunder.  If a Participant or

Beneficiary attempts to assign, transfer, alienate or encumber the right to

receive the amount of an Incentive Compensation Award hereunder or permits the

same to be subject to alienation, garnishment, attachment, execution or levy of

any kind, then the Compensation Committee in its sole discretion may hold or

apply such amount or any part thereof to or for the benefit of such Participant

or Beneficiary, the Participant’s or Beneficiary’s spouse, children, blood

relatives or other dependents, or any of them in such manner and in such

proportions as the Compensation Committee may consider proper.  Any such application of the amount of an

Incentive Compensation Award may be made without the intervention of a

guardian.  The receipt by the payee

shall constitute a complete acquittance to the Company with respect thereto and

neither the Company nor any Subsidiary nor the Compensation Committee shall

have any responsibility for the proper application thereof.

 

2.                    Plan Noncontractual. 

Nothing herein contained shall be construed as a commitment or agreement

on the part of any person employed by the Company or a Subsidiary to continue

such person’s employment with the Company or Subsidiary, and nothing herein

contained shall be construed as a commitment or agreement on the part of the

Company or any Subsidiary to continue the employment or the annual rate of

compensation of any such person for any period, and all Participants shall

remain subject to discharge to the same extent as if the Plan had never been

put into effect.

 

3.                    Interest of Participant and Beneficiary.  The obligation of the Company under the Plan

to make payments of an Incentive Compensation Award merely constitutes the

unsecured promise of the Company to make payments from its general assets as

provided therein, and no Participant or Beneficiary shall have any interest, or

a lien or prior claim upon any property of the Company or any Subsidiary.

 

4.                    Claims of other Persons.  The provisions of the Plan shall in no event be construed as

giving any person, firm or corporation any legal or equitable right as against

the Company or any Subsidiary, their officers, employees, or directors, except

any such rights as are especially provided for in the Plan or are hereafter

created in accordance with the terms and provisions of the Plan.

 

5.                    Facility of Payment. 

If any person to whom an Incentive Compensation Award is payable is

unable to care for his affairs because of illness or accident, any payment due

(unless prior claim therefore shall have been made by a duly qualified guardian

or other legal representative) may be paid to the spouse, parent, child,

brother or sister, or any other individual deemed by the Compensation Committee

to be 

 

 

7

 

 

maintaining or responsible for the maintenance of such

person.  Any payment made in accordance

with the provisions of this Section 5 shall be a complete discharge of any

liability of the Plan with respect to such payment.

 

6.                    Absence of Liability. 

No member of the Board of Directors of the Company or of a Subsidiary,

or the Chairman and Chief Executive Officer, or any officers of the Company or

a Subsidiary shall be liable for any act or action hereunder, whether of

commission or omission, taken by any other member, or by any officer, agent, or

employee, or except in circumstances involving his bad faith, for anything done

or omitted to be done by him.

 

7.                    Severability. 

The invalidity or unenforceability of any particular provision of the

Plan shall not affect any other provision hereof, and the Plan shall be

construed in all respects as if such invalid or unenforceable provision were

omitted herefrom.

 

8.                    Governing Law. 

The provisions of the Plan shall be governed and construed in accordance

with the laws of the State of Iowa, U.S.A.

 

 

 

 

8LLC MEMBERSHIP INTEREST

Exhibit 10.01

 

STOCK

PURCHASE AGREEMENT

 

This Stock Purchase Agreement (this “Agreement”) is

made and entered into as of the

             day

of April, 2002, by and between Zamba Corporation, a Delaware corporation (the

“Company”), and JAFCO America Ventures, Inc. (the “Purchaser”).

 

WHEREAS, the Company owns 1,966,667 shares of Series A

preferred stock, $.0001 par value per share (“Zamba’s NextNet Stock”) of

NextNet Wireless, Inc., a Delaware corporation (“NextNet”), which represents

approximately 29% of the outstanding capital stock of NextNet; and

 

WHEREAS, Zamba’s NextNet Stock can be converted to

common shares of NextNet at the exchange ratio of three shares of common stock

for every one share of preferred stock; and

 

WHEREAS, Zamba’s NextNet Stock is also subject to the

Investors Rights Agreement dated September 21, 1998, by and among NextNet, the

Company and certain other investors, and the Voting Agreement dated September

21, 1998, by and among NextNet, the Company and certain other investors; and

 

WHEREAS, the Purchaser is thoroughly familiar with

NextNet’s business, financial condition and prospects; and

 

WHEREAS, the Purchaser desires to purchase from the

Company and the Company has agreed to sell certain of its shares of Zamba’s

NextNet Stock (the “Shares”) pursuant to the terms of this Agreement; and

 

WHEREAS, the Purchaser acknowledges that there is no

established trading market for Zamba’s NextNet Stock or the Shares to be issued

hereunder;

 

NOW, THEREFORE, in consideration of the premises and

other good and valuable consideration, the receipt and adequacy of which are

hereby acknowledged, the parties agree as follows:

 

1.             Purchase

and Sale of Preferred Stock.  In

consideration of this Agreement, the Company hereby agrees to sell to the

Purchaser, and the Purchaser hereby agrees to purchase from the Company, the

Shares in accordance with the following terms:

(a)           The Company hereby sells to the

Purchaser, and the Purchaser hereby purchases from the Company, 83,333 shares

of Zamba’s NextNet Stock (the “Shares”), at a purchase price of $6.00 per

share, for an aggregate purchase price of $499,998.00.  Promptly upon execution of this Agreement,

the Purchaser shall pay the full amount of the purchase price to the Company by

wire transfer in immediately available funds to an account designated in

writing by the Company.

(b)           Within five business days of the

execution of this Agreement, the Company shall deliver to NextNet a notice

pursuant to the Right of First Offer set forth in 

 

Section 1.1 of the Right of First Refusal Agreement

(the “Refusal Agreement”) dated September 21, 1998 by and among the Company,

NextNet, and the holders of the Series B Preferred Stock of NextNet.

(c)           If NextNet elects to exercise its

right of first refusal pursuant to Section 1(b) above, the Purchase Price shall

be refunded to the Purchaser within five business days of the Company’s receipt

of full payment from NextNet for the Shares, and the Purchaser shall not

receive any of the Shares.  If NextNet

declines to exercise its right of first refusal, the Company shall, within five

business days after the Company’s receipt of NextNet’s notice to decline its

right, notify each investor in NextNet eligible under the Refusal Agreement of

its opportunity to exercise its pro rata right of first refusal pursuant to the

Refusal Agreement.

(d)           If any of the eligible investors in

NextNet  elects to exercise its pro rata

right of first refusal pursuant to Section 1(c) above, the Company will forward

to the Purchaser the payments the Company receives from such investor(s) within

five business days of the Company’s receipt of such payment, and the number of

Shares that the Purchaser will receive pursuant to this Agreement shall be

reduced on a pro rata basis.  Within ten

business days after the expiration of the investor refusal period, the Company

shall deliver to the Purchaser a certificate registered in the Purchaser’s name

representing the number of Shares purchased.

2.             Representations

and Warranties of the Purchaser.  As a

material inducement for the Company’s issuance and sale of the Shares, the

Purchaser represents, warrants, covenants and acknowledges to the Company that:

(a)           The Purchaser understands that the

issuance of the Shares have not been registered under the Securities Act of

1933, as amended (the “Securities Act”), or applicable state securities

laws.  Instead, the Company is issuing

the Shares pursuant to exemptions from such laws and in doing so is and would

be relying on, among other things, the Purchaser’s representations, warranties,

covenants and acknowledgements contained herein.

(b)           The Purchaser qualifies as an

“accredited investor” as such term is defined in Rule 501(a) of Regulation D

under the Securities Act, and as further represented in Section 3 of this

Agreement.

(c)           The Purchaser has sufficient

knowledge and experience in financial and business matters that the Purchaser

is capable of evaluating the merits and risks of investing in the Shares.

(d)           The Purchaser has been provided with

or given access to such additional information as the Purchaser has requested

from the Company (including the opportunity to meet with Company officers and

to review all the documents that Purchaser may have requested) and has utilized

such information to his satisfaction for the purpose of obtaining in addition

to, or verifying the accuracy of the information provided, regarding the

Company’s and NextNet’s business, financial condition and prospects.

2

 

(e)           The Purchaser understands that the

purchase of the Shares is a highly speculative investment and involves a high

degree of risk.  The Purchaser believes

that the investment in the Shares is suitable based upon the Purchaser’s

investment objectives and financial needs and the Purchaser has adequate means

of providing for current financial needs and personal contingencies, has no

need for liquidity of investment with respect to the Shares and can afford a

complete loss of such investment.

(f)            The Purchaser is acquiring the

Shares for his own account, for investment purposes only, and without the

intention of reselling or redistributing the Shares.

(g)           The Purchaser is aware that, in the

view of the Securities and Exchange Commission, a purchase of the Shares with

an intent to resell by reason of any foreseeable specific contingency or

anticipated change in market values, or any change in NextNet’s condition, or

in connection with a contemplated liquidation or settlement of any loan

obtained for the acquisition of the Shares and for which the Shares were

pledged, would constitute an intent inconsistent with the foregoing

representation.

(h)           If, contrary to the Purchaser’s

foregoing intentions, he should later desire to dispose of or transfer any of

the Shares in any manner, the undersigned shall not do so without (i) first

obtaining an opinion of counsel satisfactory to the Company and NextNet that

such proposed disposition or transfer may lawfully be made without registration

pursuant to the Securities Act and applicable state securities laws or

(ii) registering the resale of the Shares under the Securities Act and

applicable state securities laws.

(i)            Neither the Company nor NextNet has

any obligation to register the Shares for resale under the Securities Act or

any applicable state securities laws, or to take any other action which would

facilitate the availability of federal or state registration exemptions in

connection with any resale of the Shares. 

Accordingly, the Purchaser may be prohibited by law from selling or

otherwise transferring or disposing of the Shares and may have to bear the

economic risk of his investment in NextNet for an indefinite period.

(j)            The Purchaser, if other than an

individual, represents that (a) the Purchaser was not organized for the

specific purpose of acquiring the Shares; and (b) this Agreement has been duly

authorized by all necessary action on the part of the Purchaser, has been duly

executed by an authorized officer or representative of the Purchaser, and is a

legal, valid, and binding obligation of the Purchaser enforceable in accordance

with its terms.

(k)           There is no

investment banker, broker, finder or other intermediary which has been retained

by or is authorized to act on behalf of Purchaser who might be entitled to any

fee or commission from the Company upon consummation of the transactions

contemplated by this Agreement.

                                                3.             Accredited

Investor Status.               The

Purchaser is an “accredited investor” as defined in Rule 501(a) of Regulation D

of the Securities Act, because the Purchaser meets at least one of the

following criteria (please check one):

 

3

 

o    

The Purchaser is a natural person whose individual net worth, or joint

net worth with his or her spouse, exceeds $1,000,000 at the time of the

Purchaser’s purchase; or

 

o    

The Purchaser is a natural person who had an individual income in excess

of $200,000 in each of the two most recent years or joint income with the

Purchaser’s spouse in excess of $300,000 in each of those years and who

reasonably expects to reach the same income level in the current year; or

 

o    

The Purchaser is either (i) a bank as defined in Section 3(a)(2) of the

Securities Act, or any savings and loan association or other institution as

defined in Section 3(a)(5)(A) of the Securities Act whether acting in its

individual or fiduciary capacity, any broker or dealer registered pursuant to

Section 15 of the Securities Exchange Act of 1934, (ii) an insurance company as

defined in Section 2(13) of the Securities Act, (iii) an investment company

registered under the Investment Company Act of 1940 or a business development

company as defined in Section 2(a)(48) of such Act, (iv) a Small Business

Investment Company licensed by the U.S. Small Business Administration under

Section 301(c) or (d) of the Small Business Investment Act of 1958, or (v) an

employee benefit plan within the meaning of Title I of the Employee Retirement

Income Security Act of 1974, if the investment decision is made by a plan

fiduciary, as defined in Section 3(21) of such Act, which plan fiduciary is

either a bank, savings and loan association, insurance company or registered

investment adviser, or if the employee benefit plan has total assets in excess

of $5,000,000 or, if a self directed plan, with investment decisions made

solely by persons who are accredited investors; or

 

o    

The Purchaser is a private business development company as defined in

Section 202(a)(22) of the Investment Advisers Act of 1940; or

 

o    

The Purchaser is an organization described in Section 501(c)(3) of the

Internal Revenue Code, a corporation, Massachusetts or similar business trust,

or partnership, not formed for the specific purpose of acquiring the Shares,

with total assets in excess of $5,000,000; or

 

o    

The Purchaser is a director or executive officer of the Company; or

 

o    

The Purchaser is a trust, with total assets in excess of $5,000,000, not

formed for the specific purpose of acquiring the Shares, whose purchase is

directed by a sophisticated person as described in Rule 506(b)(2)(ii) of

Regulation D of the Securities Act; or

 

o    

The Purchaser is any entity in which all of the equity owners are

accredited investors.

 

4.             Representations

and Warranties of the Company.  As a

material inducement for the Purchaser’s purchase of the Shares, the Company

represents, warrants, covenants and acknowledges to the Purchaser that:

4

 

(a)           The Company is a corporation duly

organized, validly existing and in good standing under the laws of the State of

Delaware and has the requisite corporate power and authority to own its

properties and to carry on its business as now being conducted and presently

proposed to be conducted.

(b)           The Shares are being transferred to

the Purchaser free and clear of any liens, encumbrances or other restrictions,

other than restrictions on transfer that are contained in the Investors Rights

Agreement, as it may be amended from time to time, the Voting Agreement, as it

may be amended from time to time, or are otherwise set forth herein or imposed

by applicable securities laws.

5.             Merger,

Consolidation or Other Change in Control of the Company or NextNet.

(a)           If

the Company shall at any time consolidate with or merge into to another

corporation (where the Company is not the continuing corporation after such

merger, consolidation, sale of all or substantially all of its assets or other

change-in-control), or the Company shall sell, transfer or lease all or

substantially all of its assets, then, in any such case, the Purchaser

thereupon (and thereafter) shall continue to be entitled to be bound by the

terms of this Agreement and shall be entitled to receive the number of Shares

determined in accordance with Section 1 above.

(b)           If

NextNet shall at any time consolidate with or merge into another corporation

(where NextNet is not the continuing corporation after such merger,

consolidation or other change-in-control), or NextNet shall sell, transfer or

lease all or substantially all of its assets, then, in any such case, the Purchaser

thereupon (and thereafter) shall be entitled to receive the number of Shares

(or the proceeds resulting from the sale of such Shares in connection with such

merger, consolidation, or other change-in-control) determined in accordance

with Section 1 above.

6.             Insolvency

or Bankruptcy of the Company or NextNet. 

Upon the insolvency or bankruptcy (whether voluntary or involuntary) of

the Company or NextNet, or the appointment of or taking possession by a

receiver, liquidator, assignee, trustee, custodian, sequestrator (or other

similar official) of the Company or NextNet or any substantial part of the

Company’s or NextNet’s property, or any general assignment for the benefit of

creditors of the Company or NextNet, the Purchaser shall be an unsecured general

creditor of the Company or NextNet, as applicable, and shall not have any

security interest or other rights in connection with this Agreement or the

Shares purchased hereunder.

7.             Miscellaneous.

(a)           Binding Effect.  This Agreement shall be binding upon and

inure to the benefit of and be enforceable against the parties hereto and their

respective successors and permitted assigns.

(b)           Governing Law.  This Agreement shall in all respects be

governed by, and enforced and interpreted in accordance with, the laws of the

State of Minnesota, except with respect to its rules relating to conflicts of

laws.

5

 

(c)           Legends.  The Shares issued to the Purchaser pursuant to this Agreement

shall contain the following legends:

THESE SHARES HAVE NOT BEEN

REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS

OF ANY STATE AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT

PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR EXEMPTION FROM REGISTRATION

UNDER THE FOREGOING LAWS.  ACCORDINGLY,

THESE SHARES MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF WITHOUT (i)

AN OPINION OF COUNSEL SATISFACTORY TO ZAMBA CORPORATION THAT SUCH SALE,

TRANSFER OR OTHER DISPOSITION MAY LAWFULLY BE MADE WITHOUT REGISTRATION UNDER

THE SECURITIES ACT OF 1933 AND APPLICABLE STATE SECURITIES LAWS OR (ii) SUCH

REGISTRATION.

 

THE SHARES EVIDENCED HEREBY ARE SUBJECT TO A VOTING

AGREEMENT BY AND AMONG THE COMPANY AND CERTAIN STOCKHOLDERS OF THE COMPANY (A

COPY OF WHICH MAY BE OBTAINED FROM THE COMPANY), AND BY ACCEPTING ANY INTEREST

IN SUCH SHARES THE PERSON ACCEPTING SUCH INTEREST SHALL BE DEEMED TO AGREE TO

AND SHALL BECOME BOUND BY ALL THE PROVISIONS OF SAID VOTING AGREEMENT.

 

(d)           Notices.  All notices, consents, requests, demands, instructions or other

communications provided for herein shall be in writing and shall be deemed

validly given, made and served when (a) delivered personally,

(b) sent by certified or registered mail, postage prepaid, (c) sent

by reputable overnight delivery service, or (d) sent by telephonic

facsimile transmission, and, pending the designation of another address,

addressed as follows:

	

  If to the

  Company:

  	

   

  	

  Zamba

  Corporation

  
	

   

  	

   

  	

  3033 Excelsior

  Blvd., Suite 200

  
	

   

  	

   

  	

  Minneapolis,

  Minnesota 55416

  
	

   

  	

   

  	

  Attn:  Chief Financial Officer

  
	

   

  	

   

  	

  Fax: (952)

  893-3948

  
	

   

  	

   

  	

   

  

6

 

	

  If to the Purchaser:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  Fax:

  

 

 

(e)           Entire Agreement and

Counterparts.  This Agreement evidences

the entire agreement between the Company and the Purchaser relating to the

subject matter hereof and supersedes in all respects any and all prior oral or

written agreements or understandings. 

This Agreement may not be amended or modified, and no provisions hereof

may be waived, except by written instrument signed by both the Company and the

Purchaser.  This Agreement may be

executed in counterparts, each of which shall be deemed an original and all of

which, when taken together, shall constitute one Agreement.

(f)            The Purchaser and the Company

understand the meaning and legal consequences of the agreements,

representations and warranties contained herein.  The Purchaser and the Company agree that such agreements,

representations and warranties shall survive and remain in full force and

effect after the execution hereof and payment for the Shares.

(g)           Any controversy or claim arising out

of or relating to this Agreement, the Subscriber’s purchase of Shares or any

breach of this Agreement, shall be settled by arbitration administered by the

American Arbitration Association in accordance with its Securities Arbitration

Rules, and judgment on the award rendered by the Arbitrator(s) may be entered

in any court having jurisdiction thereof.

(h)           Headings.  Section headings used in this Agreement have no legal

significance and are used solely for convenience of reference.

(i)            Expenses.  Each party shall pay for its own legal, accounting and other

similar expenses incurred in connection with the transaction contemplated by

this Agreement.

IN WITNESS WHEREOF, the Company and the Purchaser have

executed this Agreement as of the date set forth in the first paragraph.

 

	

  THE COMPANY:  

  	

   

  	

  THE PURCHASER:

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  ZAMBA CORPORATION

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  By:

  	

  /s/Michael H.

  Carrel

  	

   

  	

  /s/Barry J.

  Schiffman

  
	

  Name:

  	

  Michael H.

  Carrel

  	

   

  	

  Name: Barry J.

  Schiffman

  
	

  Title:

  	

  Chief Financial Officer

  	

   

  	

  President

  

 

7

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