Document:

EXHIBIT 4.1

 

REGISTRATION RIGHTS AGREEMENT

 

 

among

 

 

SSA GLOBAL TECHNOLOGIES, INC.,

 

GENERAL ATLANTIC PARTNERS 76 L.P.,

 

GAP COINVESTMENT PARTNERS II, L.P.,

 

GAPSTAR, LLC,

 

GAPCO GMBH & CO. KG,

 

SSA INVESTOR, LLC,

 

SSA WARRANT HOLDINGS, LLC,

 

ABLECO, L.L.C.,

 

CERBERUS PARTNERS, L.P.,

 

CERBERUS INSTITUTIONAL PARTNERS, L.P.

 

and

 

MADELEINE L.L.C.

 

 

Dated: April 2, 2003

 

 

TABLE OF CONTENTS

 

	
  1.

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  
	
  2.

  	
  General; Securities Subject to this
  Agreement.

  	
   

  
	
   

  	
  (a)

  	
  Grant of Rights

  	
   

  
	
   

  	
  (b)

  	
  Registrable Securities

  	
   

  
	
   

  	
  (c)

  	
  Holders of Registrable Securities

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  Demand Registration

  	
   

  
	
   

  	
  (a)

  	
  Request for Demand Registration

  	
   

  
	
   

  	
  (b)

  	
  Incidental or “Piggy-Back” Rights with
  Respect to a Demand Registration

  	
   

  
	
   

  	
  (c)

  	
  Effective Demand Registration

  	
   

  
	
   

  	
  (d)

  	
  Expenses

  	
   

  
	
   

  	
  (e)

  	
  Underwriting Procedures

  	
   

  
	
   

  	
  (f)

  	
  Selection of Underwriters

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  Incidental or “Piggy-Back” Registration

  	
   

  
	
   

  	
  (a)

  	
  Request for Incidental Registration

  	
   

  
	
   

  	
  (b)

  	
  Expenses

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  Form S-3 Registration

  	
   

  
	
   

  	
  (a)

  	
  Request for a Form S-3 Registration

  	
   

  
	
   

  	
  (b)

  	
  Form S-3 Underwriting Procedures

  	
   

  
	
   

  	
  (c)

  	
  Limitations on Form S-3 Registrations

  	
   

  
	
   

  	
  (d)

  	
  Expenses

  	
   

  
	
   

  	
  (e)

  	
  No Demand Registration

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  Holdback Agreements

  	
   

  
	
   

  	
  (a)

  	
  Restrictions on Public Sale by Designated
  Holders

  	
   

  
	
   

  	
  (b)

  	
  Restrictions on Public Sale by the Company

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  Registration Procedures

  	
   

  
	
   

  	
  (a)

  	
  Obligations of the Company

  	
   

  
	
   

  	
  (b)

  	
  Seller Information

  	
   

  
	
   

  	
  (c)

  	
  Notice to Discontinue

  	
   

  
	
   

  	
  (d)

  	
  Registration Expenses

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  Indemnification; Contribution

  	
   

  
	
   

  	
  (a)

  	
  Indemnification by the Company

  	
   

  
	
   

  	
  (b)

  	
  Indemnification by Designated Holders

  	
   

  
	
   

  	
  (c)

  	
  Conduct of Indemnification Proceedings

  	
   

  
	
   

  	
  (d)

  	
  Contribution

  	
   

  

 

i

 

	
  9.

  	
  Rule
  144

  	
   

  
	
   

  	
   

  	
   

  
	
  10.

  	
  Miscellaneous

  	
   

  
	
   

  	
  (a)

  	
  Recapitalizations, Exchanges, etc

  	
   

  
	
   

  	
  (b)

  	
  No Inconsistent Agreements

  	
   

  
	
   

  	
  (c)

  	
  Remedies

  	
   

  
	
   

  	
  (d)

  	
  Amendments and Waivers

  	
   

  
	
   

  	
  (e)

  	
  Notices

  	
   

  
	
   

  	
  (f)

  	
  Successors and Assigns; Third Party Beneficiaries

  	
   

  
	
   

  	
  (g)

  	
  Counterparts

  	
   

  
	
   

  	
  (h)

  	
  Headings

  	
   

  
	
   

  	
  (i)

  	
  GOVERNING LAW; CONSENT TO JURISDICTION

  	
   

  
	
   

  	
  (j)

  	
  Severability

  	
   

  
	
   

  	
  (k)

  	
  Rules of Construction

  	
   

  
	
   

  	
  (l)

  	
  Entire Agreement

  	
   

  
	
   

  	
  (m)

  	
  Further Assurances

  	
   

  
	
   

  	
  (n)

  	
  Other Agreements

  	
   

  

 

ii

 

REGISTRATION RIGHTS AGREEMENT

 

REGISTRATION RIGHTS AGREEMENT, dated April 2, 2003  (this “Agreement”), among SSA
Global Technologies, Inc., a Delaware corporation (the “Company”),
General Atlantic Partners 76, L.P., a Delaware limited partnership (“GAP LP”),
GAP Coinvestment Partners II, L.P., a Delaware limited partnership (“GAP
Coinvestment”), GapStar, LLC, a Delaware limited liability company (“GapStar”),
GAPCO GmbH & Co. KG, a German limited partnership (“GmbH Coinvestment”),
SSA Investor, LLC, a Delaware limited liability company (“SSA Investor”),
SSA Warrant Holdings, LLC, a Delaware limited liability company (“Senior Warrantholder”),
Ableco, L.L.C., a Delaware limited liability company (“Ableco”),
Cerberus Partners, L.P., a Delaware limited partnership (“Cerberus Partners”),
Cerberus Institutional Partners, L.P., a Delaware limited partnership (“Cerberus
Institutional Partners”) and Madeleine L.L.C., a New York limited liability
company (“Madeleine”).

 

WHEREAS, pursuant to the Stock Purchase Agreement, dated March 10,
2003 (the “Stock Purchase Agreement”), among the Company, GAP LP, GAP
Coinvestment, GapStar, GmbH Coinvestment and Cerberus Capital Management, L.P.,
the Company has agreed to issue and sell to GAP LP, GAP Coinvestment, GapStar
and GmbH Coinvestment an aggregate of 750,000 shares of Series A Cumulative
Convertible Preferred Stock, par value $0.01 per share, of the Company (the “Series
A Preferred Stock”);

 

WHEREAS, pursuant to the Securities Exchange Agreement dated as of
April 2, 2003, by and among SSA Investor, Senior Warrantholder, Ableco,
Cerberus Partners, Cerberus Institutional Partners, Madeleine and the Company,
SSA Investor, Senior Warrantholder, Ableco, Cerberus Partners, Cerberus
Institutional Partners and Madeleine have agreed to exchange all of the
existing equity securities and $10,000,000 of indebtedness of the Company for
an aggregate of 2,250,000 shares of Series A Preferred Stock;

 

WHEREAS, concurrently herewith, the Company, GAP LP, GAP Coinvestment,
GapStar, GmbH Coinvestment and the Major Stockholders are entering into the
Stockholders Agreement (as hereinafter defined), pursuant to which the parties
thereto have agreed to, among other things, certain first offer and tag-along
rights, preemptive rights and certain corporate governance rights and
obligations; and

 

WHEREAS, in order to induce each of GAP LP, GAP Coinvestment, GapStar
and GmbH Coinvestment to purchase its shares of Series A Preferred Stock, and
to induce the parties hereto to enter into the Stockholders Agreement, the
Company has agreed to grant registration rights with respect to the Registrable
Securities (as hereinafter defined) as set forth in this Agreement.

 

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

 

 

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

 

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

 

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

 

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

 

“Approved Underwriter” has the meaning set forth in
Section 3(f) of this Agreement.

 

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

 

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

 

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

 

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

 

“Claim” has the meaning set forth in Section 8(c) of this
Agreement.

 

“Closing Price” means, with respect to the Registrable
Securities, as of the date of determination, (a) if the Registrable Securities
are listed on a national securities exchange, the closing price per share of a
Registrable Security on such date published in The Wall Street Journal
(National Edition) or, if no such closing price on such date is published
in The Wall Street Journal (National Edition), the average of the closing
bid and asked prices on such date, as officially reported on the principal
national securities 

 

2

 

exchange on which the Registrable Securities are then listed or
admitted to trading; or (b) if the Registrable Securities are not then listed
or admitted to trading on any national securities exchange but are designated
as national market system securities by the NASD, the last trading price per
share of a Registrable Security on such date; or (c) if there shall have been
no trading on such date or if the Registrable Securities are not designated as
national market system securities by the NASD, the average of the reported
closing bid and asked prices of the Registrable Securities on such date as shown
by The Nasdaq Stock Market, Inc. (or its successor) and reported by any member
firm of The New York Stock Exchange, Inc. selected by the Company; or (d) if
none of (a), (b) or (c) is applicable, a market price per share determined in
good faith by the Board of Directors or, if such determination is not
satisfactory to the Designated Holder for whom such determination is being
made, by a nationally recognized investment banking firm selected by the
Company and such Designated Holder, the expenses for which shall be borne
equally by the Company and such Designated Holder.  If trading is conducted on a continuous basis on any exchange,
then the closing price shall be at 4:00 P.M. New York City time.

 

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

 

“Common Stock” means the Common Stock, par value $.01 per share,
of the Company or any other capital stock of the Company into which such stock
is reclassified or reconstituted.

 

“Common Stock Equivalents” means any security or obligation
which is by its terms, directly or indirectly, convertible into or exchangeable
or exercisable for shares of Common Stock, including, without limitation the
Series A Preferred Stock, and any option, warrant or other subscription or
purchase right with respect to Common Stock or any Common Stock Equivalent.

 

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

 

“Company Underwriter” has the meaning set forth in
Section 4(a) of this Agreement.

 

“Demand Registration” has the meaning set forth in
Section 3(a) of this Agreement.

 

“Designated Holder” means each of the General Atlantic
Stockholders, the Major Stockholders and any transferee of any of them to whom
Registrable Securities have been transferred in accordance with
Section 10(f) of this Agreement, other than a transferee to whom
Registrable Securities have been transferred pursuant to a Registration
Statement under the Securities Act or Rule 144 or Regulation S under the Securities
Act (or any successor rule thereto).

 

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

 

3

 

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

 

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

 

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

 

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

 

“General Atlantic Stockholders” means GAP LP, GAP Coinvestment,
GapStar, GmbH Coinvestment, any Subsequent General Atlantic Purchaser and any
Permitted Transferee (as defined in the Stockholders Agreement) thereof to whom
Registrable Securities are transferred in accordance with Section 2.2 of
the Stockholders Agreement (so long as such agreement is in effect) and Section 10(f)
of this Agreement.

 

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

 

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

 

“Holders’ Counsel” has the meaning set forth in
Section 7(a)(i) of this Agreement.

 

“Incidental Registration” has the meaning set forth in
Section 4(a) of this Agreement.

 

“Indemnified Party” has the meaning set forth in
Section 8(c) of this Agreement.

 

“Indemnifying Party” has the meaning set forth in
Section 8(c) of this Agreement.

 

“Initial Public Offering” means the initial public offering of
the shares of Common Stock of the Company pursuant to an effective Registration
Statement filed under the Securities Act.

 

“Initiating Holders” has the meaning set forth in
Section 3(a) of this Agreement.

 

“Inspector” has the meaning set forth in Section 7(a)(vii)
of this Agreement.

 

“IPO Effectiveness Date” means the date upon which the Company
closes its Initial Public Offering.

 

4

 

“Liability” has the meaning set forth in Section 8(a) of
this Agreement.

 

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

 

“Major Stockholders” means SSA Investor, Senior Warrantholder,
Ableco, Cerberus Partners, Cerberus Institutional Partners, Madeleine, any
Subsequent Cerberus Purchaser and any Permitted Transferee (as defined in the
Stockholders Agreement) thereof to whom Registrable Securities are transferred
in accordance with Section 2.2 of the Stockholders Agreement (so long as
such agreement is in effect) and Section 10(f) of this Agreement.

 

“Market Price” means, on any date of determination, the average
of the daily Closing Price of the Registrable Securities for the immediately
preceding thirty (30) days on which the national securities exchanges are open
for trading.

 

“NASD” means the National Association of Securities Dealers,
Inc.

 

“Permitted Transferee” has the meaning ascribed to it in the Stockholders
Agreement.

 

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

 

“Records” has the meaning set forth in Section 7(a)(vii) of
this Agreement.

 

“Registrable Securities” means each of the following:  (a) any and all shares of Common Stock owned
by the Designated Holders or issued or issuable upon conversion of shares of
Series A Preferred Stock and any shares of Common Stock issued or issuable upon
conversion of any shares of preferred stock or exercise of any warrants
acquired by any of the Designated Holders after the date hereof, (b) any other
shares of Common Stock acquired or owned by any of the Designated Holders prior
to the IPO Effectiveness Date, or acquired or owned by any of the Designated
Holders after the IPO Effectiveness Date if such Designated Holder is an
Affiliate of the Company and (c) any shares of Common Stock issued or issuable
to any of the Designated Holders with respect to the Registrable Securities by
way of stock dividend or stock split or in connection with a combination of
shares, recapitalization, merger, consolidation or other reorganization or
otherwise and any shares of Common Stock or voting common stock issuable upon
conversion, exercise or exchange thereof.

 

“Registration Expenses” has the meaning set forth in
Section 7(d) of this Agreement.

 

5

 

“Registration Statement” means a registration statement filed
pursuant to the Securities Act.

 

“S-3 Initiating Holders” has the meaning set forth in
Section 5(a) of this Agreement.

 

“S-3 Registration” has the meaning set forth in
Section 5(a) of this Agreement.

 

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

 

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

 

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

 

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

 

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

 

 “Stockholders Agreement”
means the Stockholders Agreement, dated the date hereof, among the Company, GAP
LP, GAP Coinvestment, GapStar and the Major Stockholders.

 

“Subsequent Cerberus Purchaser” means any Affiliate of Cerberus
Capital Management, L.P. that, after the date hereof, acquires any shares of
Common Stock, Series A Preferred Stock or Common Stock Equivalents.

 

“Subsequent General Atlantic Purchaser” means any Affiliate of
GAP LLC that, after the date hereof, acquires any shares of Common Stock,
Series A Preferred Stock or Common Stock Equivalents.

 

 “Valid Business Reason”
has the meaning set forth in Section 3(a) of this Agreement.

 

2.  General; Securities Subject to this
Agreement.

 

(a)  Grant
of Rights.  The Company hereby
grants registration rights to the Designated Holders upon the terms and
conditions set forth in this Agreement.

 

(b)  Registrable Securities.  For the purposes of this Agreement,
Registrable Securities will cease to be Registrable Securities, when (i) a
Registration Statement covering such Registrable Securities has been declared
effective under the 

 

6

 

Securities Act
by the Commission and such Registrable Securities have been disposed of
pursuant to such effective Registration Statement, (ii) (x) the entire amount
of the Registrable Securities owned by a Designated Holder may be sold in a
single sale, in the opinion of counsel satisfactory to the Company and such
Designated Holder, each in their reasonable judgment, without any limitation as
to volume pursuant to Rule 144 (or any successor provision then in effect)
under the Securities Act and (y) such Designated Holder owning such Registrable
Securities owns less than one percent (1%) of the outstanding shares of Common
Stock on a fully diluted basis, or (iii) the Registrable Securities are
proposed to be sold or distributed by a Person not entitled to the registration
rights granted by this Agreement.

 

(c)  Holders of Registrable Securities.  A Person is deemed to be a holder of
Registrable Securities whenever such Person owns of record Registrable
Securities, or holds an option to purchase, or a security convertible into or
exercisable or exchangeable for, Registrable Securities whether or not such
acquisition or conversion has actually been effected.  If the Company receives conflicting instructions, notices or
elections from two or more Persons with respect to the same Registrable
Securities, the Company may act upon the basis of the instructions, notice or
election received from the registered owner of such Registrable
Securities.  Registrable Securities
issuable upon exercise of an option or upon conversion of another security
shall be deemed outstanding for the purposes of this Agreement.

 

3.  Demand
Registration.

 

(a)  Request for Demand Registration.  At any time commencing six months after the
IPO Effectiveness Date, (i) the General Atlantic Stockholders as a group, acting
through GAP LLC or its written designee or (ii) Major Stockholders holding a
majority of the Registrable Securities held by all of the Major Shareholders
(in either case, the party or parties making the request shall be referred to
as the “Initiating Holder(s)”), may make a written request to the
Company to register, and the Company shall register, under the Securities Act
(other than pursuant to a Registration Statement on Form S-4 or S-8 or any
successor thereto) (a “Demand  Registration”), the number of
Registrable Securities stated in such request; provided, however,
that the Company shall not be obligated to effect (x) more than two such Demand
Registrations for the General Atlantic Stockholders and more than five such
Demand Registrations for the Major Stockholders and (y) a Demand Registration
if the Initiating Holders propose to sell their Registrable Securities at an
aggregate price (calculated based upon the Market Price of the Registrable
Securities on the date of filing of the Registration Statement with respect to
such Registrable Securities) to the public of less than $10,000,000.  For purposes of the preceding sentence, two
or more Registration Statements filed in response to one demand shall be counted
as one Demand Registration.  If the Board
of Directors, in its good faith judgment, determines that any registration of
Registrable Securities should not be made or continued because it would
materially interfere with any material financing, acquisition, corporate
reorganization or merger or other material transaction involving the Company (a
“Valid Business Reason”), the Company may (x) postpone filing a
Registration Statement relating to a Demand Registration until such Valid
Business Reason no longer exists, but in no event for more than ninety (90)
days, and (y) in case a 

 

7

 

Registration
Statement has been filed relating to a Demand Registration, if the Valid
Business Reason has not resulted from actions taken by the Company, the
Company, upon the approval of a majority of the Board of Directors, such
majority to include at least one General Atlantic Director and at least one
Cerberus Director (each as defined in the Stockholders Agreement), may cause
such Registration Statement to be withdrawn and its effectiveness terminated or
may postpone amending or supplementing such Registration Statement.  The Company shall give written notice of its
determination to postpone or withdraw a Registration Statement and of the fact
that the Valid Business Reason for such postponement or withdrawal no longer
exists, in each case, promptly after the occurrence thereof.  Notwithstanding anything to the contrary
contained herein, the Company may not postpone or withdraw a filing under this
Section 3(a) more than once in any twelve (12) month period.  Each request for a Demand Registration by
the Initiating Holders shall state the amount of the Registrable Securities
proposed to be sold and the intended method of disposition thereof.

 

(b)  Incidental or “Piggy-Back” Rights
with Respect to a Demand Registration.  Each of the Designated Holders (other than Initiating Holders
which have requested a registration under Section 3(a)) may offer its or
his Registrable Securities under any Demand Registration pursuant to this
Section 3(b).  Within five (5) days
after the receipt of a request for a Demand Registration from an Initiating
Holder, the Company shall (i) give written notice thereof to all of the
Designated Holders (other than Initiating Holders which have requested a
registration under Section 3(a)) and (ii) subject to Section 3(e),
include in such registration all of the Registrable Securities held by such
Designated Holders from whom the Company has received a written request for
inclusion therein within ten (10) days of the receipt by such Designated
Holders of such written notice referred to in clause (i) above.  Each such request by such Designated Holders
shall specify the number of Registrable Securities proposed to be
registered.  The failure of any Designated
Holder to respond within such 10-day period referred to in clause (ii) above
shall be deemed to be a waiver of such Designated Holder’s rights under this
Section 3 with respect to such Demand Registration.  Any Designated Holder may waive its rights under
this Section 3 prior to the expiration of such 10-day period by giving
written notice to the Company, with a copy to the Initiating Holders.  If a Designated Holder sends the Company a
written request for inclusion of part or all of such Designated Holder’s
Registrable Securities in a registration, such Designated Holder shall not be
entitled to withdraw or revoke such request without the prior written consent
of the Company in its sole discretion unless, as a result of facts or
circumstances arising after the date on which such request was made relating to
the Company or to market conditions, such Designated Holder reasonably
determines that participation in such registration would have a material
adverse effect on such Designated Holder.

 

(c)  Effective Demand Registration.  The Company shall use its reasonable best
efforts to cause any such Demand Registration to become and remain effective
not later than sixty (60) days after it receives a request under
Section 3(a) hereof.  A
registration shall not constitute a Demand Registration until it has become
effective and remains continuously effective for the lesser of (i) the period
during which all Registrable Securities registered in the Demand Registration
are sold and (ii) 120 days; provided, however, that a
registration shall not constitute a Demand 

 

8

 

Registration
if (x) after such Demand Registration has become effective, such registration
or the related offer, sale or distribution of Registrable Securities thereunder
is interfered with by any stop order, injunction or other order or requirement
of the Commission or other governmental agency or court for any reason not
attributable to the Initiating Holders and such interference is not thereafter
eliminated or (y) the conditions specified in the underwriting agreement, if
any, entered into in connection with such Demand Registration are not satisfied
or waived, other than by reason of a failure by the Initiating Holder.

 

(d)  Expenses.  The Company shall pay all Registration
Expenses in connection with a Demand Registration, whether or not such Demand
Registration becomes effective.

 

(e)  Underwriting Procedures.  If the Company or the Initiating Holders
holding a majority of the Registrable Securities held by all of the Initiating
Holders so elect, the Company shall use its reasonable best efforts to cause
such Demand Registration to be in the form of a firm commitment underwritten
offering and the managing underwriter or underwriters selected for such
offering shall be the Approved Underwriter selected in accordance with
Section 3(f).  In connection with
any Demand Registration under this Section 3 involving an underwritten
offering, none of the Registrable Securities held by any Designated Holder making
a request for inclusion of such Registrable Securities pursuant to
Section 3(b) hereof shall be included in such underwritten offering unless
such Designated Holder accepts the terms of the offering as agreed upon by the
Company, the Initiating Holders and the Approved Underwriter, and then only in
such quantity as will not, in the opinion of the Approved Underwriter,
jeopardize the success of such offering by the Initiating Holders.  If the Approved Underwriter advises the
Company that the aggregate amount of such Registrable Securities requested to
be included in such offering is sufficiently large to have a material adverse
effect on the success of such offering, then the Company shall include in such
registration only the aggregate amount of Registrable Securities that the
Approved Underwriter believes may be sold without any such material adverse
effect and shall reduce the amount of Registrable Securities to be included in
such registration, first as to the Company, second as to the
Designated Holders (who are not Initiating Holders and who requested to
participate in such registration pursuant to Section 3(b) hereof) as a
group, if any, and third as to the Initiating Holders as a group, pro
rata within each group based on the number of Registrable Securities owned by
each such Designated Holder or Initiating Holder, as the case may be.

 

(f)  Selection of Underwriters.  If any Demand Registration or S-3
Registration, as the case may be, of Registrable Securities is in the form of
an underwritten offering, the Company shall select and obtain an investment
banking firm of national reputation to act as the managing underwriter of the
offering (the “Approved  Underwriter”); provided, however,
that the Approved Underwriter shall, in any case, also be approved by the
Initiating Holders or S-3 Initiating Holders, as the case may be.

 

9

 

4.  Incidental or “Piggy-Back”
Registration.

 

(a)  Request for Incidental Registration.  At any time after the IPO Effectiveness Date,
if the Company proposes to file a Registration Statement under the Securities
Act with respect to an offering by the Company for its own account (other than
a Registration Statement on Form S-4 or S-8 or any successor thereto) or for
the account of any stockholder of the Company other than the Designated
Holders, then the Company shall give written notice of such proposed filing to
each of the Designated Holders at least twenty (20) days before the anticipated
filing date, and such notice shall describe the proposed registration and
distribution and offer such Designated Holders the opportunity to register the
number of Registrable Securities as each such Designated Holder may request (an
“Incidental Registration”).  The
Company shall use its reasonable best efforts (within twenty (20) days of the
notice provided for in the preceding sentence) to cause the managing
underwriter or underwriters in the case of a proposed underwritten offering
(the “Company Underwriter”) to permit each of the Designated Holders who
have requested in writing to participate in the Incidental Registration to
include its or his Registrable Securities in such offering on the same terms
and conditions as the securities of the Company or the account of such other
stockholder, as the case may be, included therein.  In connection with any Incidental Registration under this
Section 4(a) involving an underwritten offering, the Company shall not be
required to include any Registrable Securities in such underwritten offering
unless the Designated Holders thereof accept the terms of the underwritten
offering as agreed upon between the Company, such other stockholders, if any,
and the Company Underwriter, and then only in such quantity as the Company
Underwriter believes will not jeopardize the success of the offering by the
Company.  If the Company Underwriter
determines that the registration of all or part of the Registrable Securities
which the Designated Holders have requested to be included would materially
adversely affect the success of such offering, then the Company shall be
required to include in such Incidental Registration, to the extent of the
amount that the Company Underwriter believes may be sold without causing such
adverse effect, first, all of the securities to be offered for the
account of the Company; second, the Registrable Securities to be offered
for the account of the Designated Holders pursuant to this Section 4, pro
rata based on the number of Registrable Securities owned by each such
Designated Holder; and third, any other securities requested to be
included in such offering.

 

(b)  Expenses.  The Company shall bear all Registration
Expenses in connection with any Incidental Registration pursuant to this
Section 4, whether or not such Incidental Registration becomes effective.

 

5.  Form
S-3 Registration.

 

(a)  Request for a Form S-3 Registration.  Upon the Company becoming eligible for use
of Form S-3 (or any successor form thereto) under the Securities Act in
connection with a public offering of its securities, in the event that the
Company shall receive from one or more of the General Atlantic Stockholders as
a group, acting through GAP LLC or its written designee or the Major
Stockholders holding a majority of the Registrable Securities held by all of
the Major Stockholders (the “S-3 Initiating Holders”), a written request
that the Company register, under the Securities Act on Form S-3 (or any
successor form then in effect) (an “S-3 Registration”), all or a 

 

10

 

portion of the Registrable Securities owned by such S-3 Initiating
Holders, the Company shall give written notice of such request to all of the
Designated Holders (other than S-3 Initiating Holders which have requested an
S-3 Registration under this Section 5(a)) at least ten (10) days before
the anticipated filing date of such Form S-3, and such notice shall describe
the proposed registration and offer such Designated Holders the opportunity to
register the number of Registrable Securities as each such Designated Holder
may request in writing to the Company, given within ten (10) days after their
receipt from the Company of the written notice of such registration.  If requested by the S-3 Initiating Holders
such S-3 Registration shall be for an offering on a continuous basis pursuant
to Rule 415 under the Securities Act. With respect to each S-3 Registration,
the Company shall, subject to Section 5(b), (i) include in such offering
the Registrable Securities of the S-3 Initiating Holders and (ii) use its reasonable
best efforts to (x) cause such registration pursuant to this Section 5(a)
to become and remain effective as soon as practicable, but in any event not
later than sixty (60) days after it receives a request therefor and (y) include
in such offering the Registrable Securities of the Designated Holders (other
than S-3 Initiating Holders which have requested an S-3 Registration under this
Section 5(a)) who have requested in writing to participate in such
registration on the same terms and conditions as the Registrable Securities of
the S-3 Initiating Holders included therein.

 

(b)  Form S-3 Underwriting Procedures.  If the S-3 Initiating Holders holding a
majority of the Registrable Securities held by all of the S-3 Initiating
Holders so elect, the Company shall use its reasonable best efforts to cause
such S-3 Registration pursuant to this Section 5 to be in the form of a
firm commitment underwritten offering and the managing underwriter or
underwriters selected for such offering shall be the Approved Underwriter
selected in accordance with Section 3(f). 
In connection with any S-3 Registration under Section 5(a)
involving an underwritten offering, the Company shall not be required to
include any Registrable Securities in such underwritten offering unless the
Designated Holders thereof accept the terms of the underwritten offering as
agreed upon between the Company, the Approved Underwriter and the S-3
Initiating Holders, and then only in such quantity as such underwriter believes
will not jeopardize the success of such offering by the S-3 Initiating
Holders.  If the Approved Underwriter
believes that the registration of all or part of the Registrable Securities
which the S-3 Initiating Holders and the other Designated Holders have
requested to be included would materially adversely affect the success of such
public offering, then the Company shall be required to include in the
underwritten offering, to the extent of the amount that the Approved
Underwriter believes may be sold without causing such adverse effect, first,
all of the Registrable Securities to be offered for the account of the S-3
Initiating Holders, pro rata based on the number of Registrable Securities
owned by such S-3 Initiating Holders; second, the Registrable Securities
to be offered for the account of the other Designated Holders who requested
inclusion of their Registrable Securities pursuant to Section 5(a), pro
rata based on the number of Registrable Securities owned by such Designated
Holders; and third, any other securities requested to be included in
such offering.

 

(c)  Limitations on Form S-3
Registrations.  If the Board of
Directors has a Valid Business Reason, the Company may (x) postpone filing a 

 

11

 

Registration
Statement relating to a S-3 Registration until such Valid Business Reason no
longer exists, but in no event for more than ninety (90) days, and (y) in case
a Registration Statement has been filed relating to a S-3 Registration, if the
Valid Business Reason has not resulted from actions taken by the Company, the
Company, upon the approval of a majority of the Board of Directors, such
majority to include at least one General Atlantic Director (as defined in the
Stockholders Agreement), may cause such Registration Statement to be withdrawn
and its effectiveness terminated or may postpone amending or supplementing such
Registration Statement.  The Company
shall give written notice of its determination to postpone or withdraw a
Registration Statement and of the fact that the Valid Business Reason for such
postponement or withdrawal no longer exists, in each case, promptly after the
occurrence thereof.  Notwithstanding
anything to the contrary contained herein, the Company may not postpone or
withdraw a filing due to a Valid Business Reason more than once in any twelve
(12) month period.  In addition, the
Company shall not be required to effect any registration pursuant to
Section 5(a), (i) within ninety (90) days after the effective date of any
other Registration Statement of the Company, (ii) if within the twelve (12)
month period preceding the date of such request, the Company has effected two
(2) registrations on Form S-3 pursuant to Section 5(a), (iii) if Form S-3
is not available for such offering by the S-3 Initiating Holders or (iv) if the
S-3 Initiating Holders, together with the Designated Holders (other than S-3
Initiating Holders which have requested an S-3 Registration under
Section 5(a)) registering Registrable Securities in such registration,
propose to sell their Registrable Securities at an aggregate price (calculated
based upon the Market Price of the Registrable Securities on the date of filing
of the Form S-3 with respect to such Registrable Securities) to the public of
less than $5,000,000.

 

(d)  Expenses.  The Company shall bear all Registration
Expenses in connection with any S-3 Registration pursuant to this
Section 5, whether or not such S-3 Registration become effective.

 

(e)  No Demand Registration.  No registration requested by any S-3
Initiating Holder pursuant to this Section 5 shall be deemed a Demand
Registration pursuant to Section 3.

 

6.  Holdback
Agreements.

 

(a)  Restrictions on Public Sale by
Designated Holders.  To
the extent (i) requested (A) by any of (x) the Company or (y) the Initiating
Holders or S-3 Initiating Holders holding a majority of the Registrable
Securities initially requested to be included in a registration effected
pursuant to Section 3(a) or Section 5 hereof, as the case may be, in
the case of a non-underwritten public offering and (B) by the Approved
Underwriter or the Company Underwriter, as the case may be, in the case of an
underwritten public offering and (ii) all of the Company’s officers, directors
and holders in excess of one percent (1%) of its outstanding capital stock
execute agreements identical to those referred to in this Section 6(a),
each Designated Holder agrees (x) not to effect any public sale or distribution
of any Registrable Securities or of any securities convertible into or
exchangeable or exercisable for such Registrable Securities, including a sale
pursuant to Rule 144 under the Securities Act, or offer to sell, contract to
sell 

 

12

 

(including
without limitation any short sale), grant any option to purchase or enter into
any hedging or similar transaction with the same economic effect as a sale any
Registrable Securities and (y) not to make any request for a Demand
Registration or S-3 Registration under this Agreement, during the ninety (90)
day period or such shorter period, if any, mutually agreed upon by such
Designated Holder and the requesting party beginning on the effective date of
the Registration Statement (except as part of such registration) for such
public offering.  No Designated Holder
of Registrable Securities subject to this Section 6(a) shall be released
from any obligation under any agreement, arrangement or understanding entered
into pursuant to this Section 6(a) unless all other Designated Holders of
Registrable Securities subject to the same obligation are also released.

 

(b)  Restrictions on Public Sale by
the Company.  The Company
agrees not to effect any public sale or distribution of any of its securities,
or any securities convertible into or exchangeable or exercisable for such
securities (except pursuant to registrations on Form S-4 or S-8 or any
successor thereto), during the period beginning on the effective date of any
Registration Statement in which the Designated Holders of Registrable
Securities are participating and ending on the earlier of (i) the date on which
all Registrable Securities registered on such Registration Statement are sold
and (ii) 120 days after the effective date of such Registration Statement
(except as part of such registration).

 

7.  Registration Procedures.

 

(a)  Obligations of the Company.  Whenever registration of Registrable
Securities has been requested pursuant to Section 3, Section 4 or
Section 5 of this Agreement, the Company shall use its reasonable best
efforts to effect the registration and sale of such Registrable Securities in
accordance with the intended method of distribution thereof as quickly as
practicable, and in connection with any such request, the Company shall, as
expeditiously as possible:

 

(i)            prepare
and file with the Commission a Registration Statement on any form for which the
Company then qualifies or which counsel for the Company shall deem appropriate
and which form shall be available for the sale of such Registrable Securities
in accordance with the intended method of distribution thereof, and cause such
Registration Statement to become effective; provided, however,
that (x) before filing a Registration Statement or prospectus or any amendments
or supplements thereto, the Company shall provide counsel selected by the
Designated Holders holding a majority of the Registrable Securities being
registered in such registration (“Holders’ Counsel”) and any
other Inspector with an adequate and appropriate opportunity to review and
comment on such Registration Statement and each prospectus included therein
(and each amendment or supplement thereto) to be filed with the Commission,
subject to such documents being under the Company’s control, and (y) the
Company shall notify the Holders’ Counsel and each seller of Registrable
Securities of any stop order issued or threatened by the Commission and take
all action required to prevent the entry of such stop order or to remove it if
entered;

 

13

 

(ii)           prepare
and file with the Commission such amendments and supplements to such
Registration Statement and the prospectus used in connection therewith as may
be necessary to keep such Registration Statement effective for the lesser of
(x) 120 days and (y) such shorter period which will terminate when all
Registrable Securities covered by such Registration Statement have been sold; provided,
that if the S-3 Initiating Holders have requested that an S-3 Registration be
for an offering on a continuous basis pursuant to Rule 415 under the Securities
Act, then the Company shall keep such Registration Statement effective until
all Registrable Securities covered by such Registration Statement have been
sold; and shall comply with the provisions of the Securities Act with respect
to the disposition of all securities covered by such Registration Statement
during such period in accordance with the intended methods of disposition by
the sellers thereof set forth in such Registration Statement;

 

(iii)          furnish
to each seller of Registrable Securities, prior to filing a Registration Statement,
at least one copy of such Registration Statement as is proposed to be filed,
and thereafter such number of copies of such Registration Statement, each
amendment and supplement thereto (in each case including all exhibits thereto),
and the prospectus included in such Registration Statement (including each
preliminary prospectus) and any prospectus filed under Rule 424 under the
Securities Act as each such seller may reasonably request in order to
facilitate the disposition of the Registrable Securities owned by such seller;

 

(iv)          register
or qualify such Registrable Securities under such other securities or “blue
sky” laws of such jurisdictions as any seller of Registrable Securities may
request, and to continue such qualification in effect in such jurisdiction for
as long as permissible pursuant to the laws of such jurisdiction, or for as
long as any such seller requests or until all of such Registrable Securities
are sold, whichever is shortest, and do any and all other acts and things which
may be reasonably necessary or advisable to enable any such seller to
consummate the disposition in such jurisdictions of the Registrable Securities
owned by such seller; provided, however, that the Company shall
not be required to (x) qualify generally to do business in any jurisdiction
where it would not otherwise be required to qualify but for this
Section 7(a)(iv), (y) subject itself to taxation in any such jurisdiction
or (z) consent to general service of process in any such jurisdiction;

 

(v)           notify
each seller of Registrable Securities at any time when a prospectus relating
thereto is required to be delivered under the Securities Act, upon discovery
that, or upon the happening of any event as a result of which, the prospectus
included in such Registration Statement contains an untrue statement of a
material fact or omits to state any material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading and the Company shall promptly
prepare a supplement or amendment to such prospectus and furnish to each seller
of Registrable Securities a reasonable number of copies of such supplement to
or an amendment of such prospectus as may be necessary so that, after delivery
to the purchasers of such Registrable Securities, such prospectus shall not
contain an untrue statement of a material fact or omit 

 

14

 

to state any
material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not
misleading;

 

(vi)          enter
into and perform customary agreements (including an underwriting agreement in
customary form with the Approved Underwriter or Company Underwriter, if any,
selected as provided in Section 3, Section 4 or Section 5, as
the case may be) and take such other actions as are prudent and reasonably
required in order to expedite or facilitate the disposition of such Registrable
Securities, including causing its officers to participate in “road shows” and
other information meetings organized by the Approved Underwriter or Company
Underwriter;

 

(vii)         make
available at reasonable times for inspection by any seller of Registrable
Securities, any managing underwriter participating in any disposition of such
Registrable Securities pursuant to a Registration Statement, Holders’ Counsel
and any attorney, accountant or other agent retained by any such seller or any
managing underwriter (each, an “Inspector” and collectively, the “Inspectors”),
all financial and other records, pertinent corporate documents and properties
of the Company and its subsidiaries (collectively, the “Records”) as
shall be reasonably necessary to enable them to exercise their due diligence responsibility,
and cause the Company’s and its subsidiaries’ officers, directors and
employees, and the independent public accountants of the Company, to supply all
information reasonably requested by any such Inspector in connection with such
Registration Statement.  Records that
the Company determines, in good faith, to be confidential and which it notifies
the Inspectors are confidential shall not be disclosed by the Inspectors (and
the Inspectors shall confirm their agreement in writing in advance to the
Company if the Company shall so request) unless (x) the disclosure of such
Records is necessary, in the Company’s judgment, to avoid or correct a
misstatement or omission in the Registration Statement, (y) the release of such
Records is ordered pursuant to a subpoena or other order from a court of
competent jurisdiction after exhaustion of all appeals therefrom or (z) the
information in such Records was known to the Inspectors on a non-confidential
basis prior to its disclosure by the Company or has been made generally
available to the public.  Each seller of
Registrable Securities agrees that it shall, upon learning that disclosure of
such Records is sought in a court of competent jurisdiction, give notice to the
Company and allow the Company, at the Company’s expense, to undertake
appropriate action to prevent disclosure of the Records deemed confidential;

 

(viii)        if
such sale is pursuant to an underwritten offering, obtain a “cold comfort”
letters dated the effective date of the Registration Statement and the date of
the closing under the underwriting agreement from the Company’s independent
public accountants in customary form and covering such matters of the type
customarily covered by “cold comfort” letters as Holders’ Counsel or the
managing underwriter reasonably requests;

 

(ix)           furnish,
at the request of any seller of Registrable Securities on the date such
securities are delivered to the underwriters for sale pursuant to such
registration or, if such securities are not being sold through underwriters, on
the date the Registration Statement with respect to such securities becomes
effective, an opinion, 

 

15

 

dated such date, of counsel representing the Company for the purposes
of such registration, addressed to the underwriters, if any, and to the seller
making such request, covering such legal matters with respect to the
registration in respect of which such opinion is being given as the
underwriters, if any, and such seller may reasonably request and are
customarily included in such opinions;

 

(x)            comply
with all applicable rules and regulations of the Commission, and make available
to its security holders, as soon as reasonably practicable but no later than
fifteen (15) months after the effective date of the Registration Statement, an
earnings statement covering a period of twelve (12) months beginning after the
effective date of the Registration Statement, in a manner which satisfies the
provisions of Section 11(a) of the Securities Act and Rule 158 thereunder;

 

(xi)           cause
all such Registrable Securities to be listed on each securities exchange on
which similar securities issued by the Company are then listed, provided
that the applicable listing requirements are satisfied;

 

(xii)          keep
Holders’ Counsel advised in writing as to the initiation and progress of any
registration under Section 3, Section 4 or Section 5 hereunder;

 

(xiii)         cooperate
with each seller of Registrable Securities and each underwriter participating
in the disposition of such Registrable Securities and their respective counsel
in connection with any filings required to be made with the NASD; and

 

(xiv)        take
all other steps reasonably necessary to effect the registration of the
Registrable Securities contemplated hereby.

 

(b)  Seller Information.  The Company may require each seller of
Registrable Securities as to which any registration is being effected to
furnish, and such seller shall furnish, to the Company such information
regarding the distribution of such securities as the Company may from time to
time reasonably request in writing.

 

(c)  Notice to Discontinue.  Each Designated Holder agrees that, upon
receipt of any notice from the Company of the happening of any event of the
kind described in Section 7(a)(v), such Designated Holder shall forthwith
discontinue disposition of Registrable Securities pursuant to the Registration
Statement covering such Registrable Securities until such Designated Holder’s
receipt of the copies of the supplemented or amended prospectus contemplated by
Section 7(a)(v) and, if so directed by the Company, such Designated Holder
shall deliver to the Company (at the Company’s expense) all copies, other than
permanent file copies then in such Designated Holder’s possession, of the
prospectus covering such Registrable Securities which is current at the time of
receipt of such notice.  If the Company
shall give any such notice, the Company shall extend the period during which
such Registration Statement shall be maintained effective pursuant to this
Agreement (including, without limitation, the period referred to in
Section 7(a)(ii)) by the number of days during the period from and 

 

16

 

including the
date of the giving of such notice pursuant to Section 7(a)(v) to and
including the date when sellers of such Registrable Securities under such
Registration Statement shall have received the copies of the supplemented or
amended prospectus contemplated by and meeting the requirements of
Section 7(a)(v).

 

(d)  Registration Expenses.  The Company shall pay all expenses arising
from or incident to its performance of, or compliance with, this Agreement,
including, without limitation, (i) Commission, stock exchange and NASD
registration and filing fees, (ii) all fees and expenses incurred in complying
with securities or “blue sky” laws (including reasonable fees, charges and
disbursements of counsel to any underwriter incurred in connection with “blue
sky” qualifications of the Registrable Securities as may be set forth in any underwriting
agreement), (iii) all printing, messenger and delivery expenses, (iv) the fees,
charges and expenses of counsel to the Company and of its independent public
accountants and any other accounting fees, charges and expenses incurred by the
Company (including, without limitation, any expenses arising from any “cold
comfort” letters or any special audits incident to or required by any
registration or qualification) and any legal fees, charges and expenses
incurred, in the case of a Demand Registration or an S-3 Registration, by the
Initiating Holders or the S-3 Initiating Holders, as the case may be, and (v)
any liability insurance or other premiums for insurance obtained in connection
with any Demand Registration or piggy-back registration thereon, Incidental
Registration or S-3 Registration pursuant to the terms of this Agreement,
regardless of whether such Registration Statement is declared effective.  All of the expenses described in the
preceding sentence of this Section 7(d) are referred to herein as
“Registration Expenses.”  The Designated
Holders of Registrable Securities sold pursuant to a Registration Statement
shall bear the expense of any broker’s commission or underwriter’s discount or
commission relating to registration and sale of such Designated Holders’
Registrable Securities and, subject to clause (iv) above, shall bear the fees
and expenses of their own counsel.

 

8.  Indemnification; Contribution.

 

(a)  Indemnification by the Company.  The Company agrees to indemnify and hold
harmless each Designated Holder, its partners, directors, officers, members,
shareholders, employees, agents, affiliates and each Person who controls
(within the meaning of Section 15 of the Securities Act) such Designated
Holder from and against any and all losses, claims, damages, liabilities and
expenses (including reasonable costs of investigation) (each, a “Liability”
and collectively, “Liabilities”), arising out of or based upon any
untrue, or allegedly untrue, statement of a material fact contained in any Registration
Statement, prospectus or preliminary prospectus or notification or offering
circular (as amended or supplemented if the Company shall have furnished any
amendments or supplements thereto) or arising out of or based upon any omission
or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading under the
circumstances such statements were made, except insofar as such Liability
arises out of or is based upon any untrue statement or alleged untrue statement
or omission or alleged omission contained in such Registration Statement,
preliminary prospectus or final prospectus in reliance and in conformity with
information concerning such Designated Holder furnished in writing to 

 

17

 

the Company by
such Designated Holder expressly for use therein, including, without
limitation, the information furnished to the Company pursuant to
Section 8(b).  The Company shall
also provide customary indemnities to any underwriters of the Registrable
Securities, their officers, directors and employees and each Person who
controls such underwriters (within the meaning of Section 15 of the
Securities Act) to the same extent as provided above with respect to the
indemnification of the Designated Holders of Registrable Securities.

 

(b)  Indemnification by Designated
Holders.  In connection with any
Registration Statement in which a Designated Holder is participating pursuant
to Section 3, Section 4 or Section 5 hereof, each such
Designated Holder shall promptly furnish to the Company in writing such
information with respect to such Designated Holder as the Company may
reasonably request or as may be required by law for use in connection with any
such Registration Statement or prospectus and all information required to be
disclosed in order to make the information previously furnished to the Company
by such Designated Holder not materially misleading or necessary to cause such
Registration Statement not to omit a material fact with respect to such
Designated Holder necessary in order to make the statements therein not
misleading.  Each Designated Holder
agrees, severally and not jointly, to indemnify and hold harmless the Company,
any underwriter retained by the Company, each Person who controls the Company
or such underwriter (within the meaning of Section 15 of the Securities
Act) each of the Company’s directors, each of the Company’s officers who has
signed the Registration Statement and any other Designated Holder offering or
selling securities pursuant to such Registration Statement to the same extent
as the foregoing indemnity from the Company to the Designated Holders, but only
if such statement or alleged statement or omission or alleged omission was made
in reliance upon and in conformity with information with respect to such
Designated Holder furnished in writing to the Company by such Designated Holder
expressly for use in such Registration Statement or prospectus, including,
without limitation, the information furnished to the Company pursuant to this
Section 8(b); provided, however, that the total amount to be
indemnified by such Designated Holder pursuant to this Section 8(b) shall
be limited to the net proceeds (after deducting the underwriters’ discounts and
commissions) received by such Designated Holder in the offering to which the
Registration Statement or prospectus relates.

 

(c)  Conduct of Indemnification
Proceedings.  Any Person
entitled to indemnification hereunder (the “Indemnified Party”) agrees
to give prompt written notice to the indemnifying party (the “Indemnifying
Party”) after the receipt by the Indemnified Party of any written notice of
the commencement of any action, suit, proceeding or investigation or threat
thereof (each, a “Claim”) made in writing for which the Indemnified
Party intends to claim indemnification or contribution pursuant to this
Agreement; provided, however, that the failure so to notify the
Indemnifying Party shall not relieve the Indemnifying Party of any Liability
that it may have to the Indemnified Party hereunder (except to the extent that
the Indemnifying Party is materially prejudiced or otherwise forfeits
substantive rights or defenses by reason of such failure).  If notice of commencement of any such action
is given to the Indemnifying Party as above provided, the Indemnifying Party
shall be entitled to participate in and, to the extent it may wish, 

 

18

 

jointly with
any other Indemnifying Party similarly notified, to assume the defense of such
action at its own expense, with counsel chosen by it and reasonably
satisfactory to such Indemnified Party. 
The Indemnified Party shall have the right to employ separate counsel in
any such action and participate in the defense thereof, but the fees and
expenses of such counsel shall be paid by the Indemnified Party unless (i) the
Indemnifying Party agrees to pay the same, (ii) the Indemnifying Party fails to
assume the defense of such action with counsel reasonably satisfactory to the
Indemnified Party or (iii) the named parties to any such action (including any
impleaded parties) include both the Indemnifying Party and the Indemnified
Party and such parties have been advised by such counsel that either (x) representation
of such Indemnified Party and the Indemnifying Party by the same counsel would
be inappropriate under applicable standards of professional conduct or (y)
there may be one or more legal defenses available to the Indemnified Party
which are different from or additional to those available to the Indemnifying
Party.  In any of such cases, the
Indemnifying Party shall not have the right to assume the defense of such
action on behalf of such Indemnified Party, it being understood, however, that
the Indemnifying Party shall not be liable for the fees and expenses of more
than one separate firm of attorneys (in addition to any local counsel) for all
Indemnified Parties.  No Indemnifying
Party shall be liable for any settlement entered into without its written
consent, which consent shall not be unreasonably withheld.  No Indemnifying Party shall, without the
prior written consent of such Indemnified Party settle, compromise or consent
to the entry of any judgment in any pending or threatened Claim relating to the
matters contemplated hereby (if such Indemnified Party is a party thereto and
indemnity has been sought hereunder by such Indemnified Party) unless such
settlement, compromise or consent includes an unconditional release of such
Indemnified Party from all liability arising or that may arise from such
Claim.  The rights accorded to an
Indemnified Party hereunder shall be in addition to any rights that any
Indemnified Party may have at common law, by separate agreement or otherwise; provided,
however, that notwithstanding the foregoing or anything to the contrary
contained in this Agreement, nothing in this Section 8 shall restrict or
limit any rights that any Indemnified Party may have to seek equitable relief.

 

(d)  Contribution.  If the indemnification provided for in this
Section 8 from the Indemnifying Party is unavailable to an Indemnified
Party hereunder in respect of any Liabilities referred to herein, then the
Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute
to the amount paid or payable by such Indemnified Party as a result of such
Liabilities in such proportion as is appropriate to reflect the relative fault
of the Indemnifying Party and Indemnified Party in connection with the actions
which resulted in such Liabilities, as well as any other relevant equitable
considerations.  The relative faults of
such Indemnifying Party and Indemnified Party shall be determined by reference
to, among other things, whether any action in question, including any untrue or
alleged untrue statement of a material fact or omission or alleged omission to
state a material fact, has been made by, or relates to information supplied by,
such Indemnifying Party or Indemnified Party, and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such
action.  The amount paid or payable by a
party as a result of the Liabilities referred to above shall be deemed to
include, subject to the limitations set forth in Sections 8(a), 8(b) and 8(c),
any legal or other fees, charges or expenses reasonably incurred by such party
in connection 

 

19

 

with any
investigation or proceeding; provided that the total amount to be
contributed by such Designated Holder shall be limited to the net proceeds
(after deducting the underwriters’ discounts and commissions) received by such
Designated Holder in the offering.

 

The parties hereto agree that it would not be just and equitable if
contribution pursuant to this Section 8(d) were determined by pro rata
allocation or by any other method of allocation which does not take account of
the equitable considerations referred to in the immediately preceding
paragraph.  No Person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities
Act) shall be entitled to contribution from any Person who was not guilty of
such fraudulent misrepresentation.

 

9.  Rule 144.  The Company covenants that from and after
the IPO Effectiveness Date it shall (a) file any reports required to be filed
by it under the Exchange Act and (b) take such further action as each
Designated Holder may reasonably request (including providing any information
necessary to comply with Rule 144 under the Securities Act), all to the extent
required from time to time to enable such Designated Holder to sell Registrable
Securities without registration under the Securities Act within the limitation
of the exemptions provided by (i) Rule 144 under the Securities Act, as such
rule may be amended from time to time, or Regulation S under the Securities Act
or (ii) any similar rules or regulations hereafter adopted by the
Commission.  The Company shall, upon the
request of any Designated Holder, deliver to such Designated Holder a written
statement as to whether it has complied with such requirements.

 

10.  Miscellaneous.

 

(a)  Recapitalizations, Exchanges, etc.  The provisions of this Agreement shall apply
to the full extent set forth herein with respect to (i) the shares of Common
Stock, (ii) any and all shares of voting common stock of the Company into which
the shares of Common Stock are converted, exchanged or substituted in any
recapitalization or other capital reorganization by the Company and (iii) any
and all equity securities of the Company or any successor or assign of the
Company (whether by merger, consolidation, sale of assets or otherwise) which
may be issued in respect of, in conversion of, in exchange for or in
substitution of, the shares of Common Stock and shall be appropriately adjusted
for any stock dividends, splits, reverse splits, combinations,
recapitalizations and the like occurring after the date hereof.  The Company shall cause any successor or
assign (whether by merger, consolidation, sale of assets or otherwise) to enter
into a new registration rights agreement with the Designated Holders on terms
substantially the same as this Agreement as a condition of any such
transaction.

 

(b)  No Inconsistent Agreements.  Except for registration rights set forth in
that certain Stockholders Agreement dated as of July 31, 2000 by and among
the Company and the stockholders named therein (which agreement has been
terminated and is no longer in force or effect), the Company represents and
warrants that it has not granted to any Person the right to request or require
the Company to register any 

 

20

 

securities
issued by the Company, other than the rights granted to the Designated Holders
herein.  The Company shall not enter
into any agreement with respect to its securities that is inconsistent with the
rights granted to the Designated Holders in this Agreement or grant any
additional registration rights to any Person or with respect to any securities
which are not Registrable Securities which are prior in right to or
inconsistent with the rights granted in this Agreement, except that (x) the
Company may grant the registration rights held by (i) the General Atlantic
Stockholders to any Subsequent General Atlantic Purchaser and (ii) the Major Stockholders
to any Subsequent Cerberus Purchaser and (y) the Company may grant incidental
registration rights to Michael Greenough with respect to any securities of the
Company that he may own now or in the future, provided that such incidental
registration rights are on terms substantially similar to those set forth in
Section 4 hereof and concurrently with such grant, Michael Greenough
executes a joinder agreement to this Agreement, in form and substance
reasonably satisfactory to the Major Stockholders and the General Atlantic
Stockholders.

 

(c)  Remedies.  The Designated Holders, in addition to being
entitled to exercise all rights granted by law, including recovery of damages,
shall be entitled to specific performance of their rights under this Agreement.  The Company agrees that monetary damages
would not be adequate compensation for any loss incurred by reason of a breach
by it of the provisions of this Agreement and hereby agrees to waive in any
action for specific performance the defense that a remedy at law would be
adequate.

 

(d)  Amendments and Waivers.  Except as otherwise provided herein, the
provisions of this Agreement may not be amended, modified or supplemented, and
waivers or consents to departures from the provisions hereof may not be given
unless consented to in writing by (i) the Company, (ii) the General Atlantic
Stockholders holding Registrable Securities representing (after giving effect
to any adjustments) at least a majority of the aggregate number of Registrable
Securities owned by all of the General Atlantic Stockholders and (iii) the
Major Stockholders holding Registrable Securities representing (after giving
effect to any adjustments) at least a majority of the aggregate number of
Registrable Securities owned by all of the Major Stockholders.  Any such written consent or waiver shall be
binding upon the Company and all of the Designated Holders.  Notwithstanding the first sentence of this
Section 10(d), the Company, (A) without the consent of any other party
hereto (other than the General Atlantic Stockholders), may amend this Agreement
to add any Subsequent General Atlantic Purchaser as a party to this Agreement
as a General Atlantic Stockholder; and (B) without the consent of any other
party hereto (other than the Major Stockholders), may amend this Agreement to
add any Subsequent Cerberus Purchaser as a party to this Agreement as a Major
Stockholder.  In the event of any
amendment pursuant to either of the preceding clause (A) or clause (B), the
Company shall not later than two Business Days after such amendment, give
notice thereof to the General Atlantic Stockholders and the Major Stockholders.

 

(e)  Notices.  All notices, demands and other
communications provided for or permitted hereunder shall be made in writing and
shall be made by 

 

21

 

registered or
certified first-class mail, return receipt requested, telecopier, courier
service or personal delivery:

 

(i)            if
to the Company:

 

SSA Global Technologies, Inc.

500 West Madison

Suite 1600

Chicago, IL  60661

Telecopy:  (312) 474-7500

Attention:  General Counsel

 

with a copy to:

 

SSA Investor, LLC

c/o Cerberus Capital Management, L.P.

450 Park Avenue

New York, NY 10022

Telecopy:  (212) 891-1540

Attention:  Mark A. Neporent

Chief Operating Officer

 

(ii)        if to GAP LP, GAP Coinvestment or GapStar:

 

c/o General Atlantic Service Corporation

3 Pickwick Plaza

Greenwich, CT  06830

Telecopy: 
(203) 622-8818

Attention:  Matthew Nimetz

Thomas J. Murphy

 

with a copy to:

 

Paul, Weiss, Rifkind, Wharton & Garrison LLP

1285 Avenue of the Americas

New York, NY 10019-6064

Telecopy:  (212) 757-3990

Attention:  Douglas A. Cifu, Esq.

 

(iii)       if to GmbH Coinvestment:

 

c/o General Atlantic Partners GmbH

Koenigsalle 88

40212 Duesseldorf

Germany

Telecopy: 
011-49-211-602-888-89

Attention: Matthew Nimetz

 

22

 

with a copy to:

 

General Atlantic Service Corporation

3 Pickwick Plaza

Greenwich, CT  06830

Telecopy: 
(203) 622-8818

Attention:  Matthew Nimetz

Thomas J. Murphy

 

and

 

Paul, Weiss, Rifkind, Wharton & Garrison
LLP

1285 Avenue of the Americas

New York, NY 10019-6064

Telecopy: 
(212) 757-3990

Attention: 
Douglas A. Cifu, Esq.

 

(iv)       if to SSA Investor, Senior Warrantholder,
Ableco, Cerberus Partners, Cerberus Institutional Partners or Madeleine:

 

SSA Investor, LLC

c/o Cerberus Capital Management, L.P.

450 Park Avenue

New York, NY 10022

Telecopy:  (212) 891-1540

Attention:  Mark A. Neporent

Chief Operating Officer

 

with a copy to:

 

Schulte Roth & Zabel LLP

919 Third Avenue

New York, NY 10022

Telecopy:  (212) 593-5955

Attention:  Robert B. Loper,
Esq.

 

(v)        if to any other Designated Holder, at its
address as it appears on the record books of the Company.

 

All such notices, demands and other communications shall be deemed to have
been duly given when delivered by hand, if personally delivered; when delivered
by courier, if delivered by commercial courier service; five (5) Business Days
after being deposited in the mail, postage prepaid, if mailed; and when receipt
is mechanically acknowledged, if telecopied. 
Any party may by notice given in accordance with this Section 10(e)
designate another address or Person for receipt of notices hereunder.

 

23

 

(f)  Successors and Assigns; Third
Party Beneficiaries. 
This Agreement shall inure to the benefit of and be binding upon the
successors and permitted assigns of the parties hereto as hereinafter
provided.  The Demand Registration
rights and the S-3 Registration rights and related rights of the General
Atlantic Stockholders and the Major Stockholders contained in Sections 3 and 5
hereof, shall be (i) with respect to any Registrable Security that is
transferred to an Affiliate of a General Atlantic Stockholders or Major
Stockholder, as the case may be, automatically transferred to such Affiliate
and (ii) with respect to any Registrable Security that is transferred in all
cases to a non-Affiliate, transferred only with the consent of the
Company.  The incidental or “piggy-back”
registration rights of the Designated Holders contained in Sections 3(b), 4 and
5 hereof and the other rights of each of the Designated Holders with respect
thereto shall be, with respect to any Registrable Security, automatically
transferred to any Person who is the transferee of such Registrable Security,
but only if transferred in compliance with the applicable provisions of the
Stockholders Agreement.  All of the
obligations of the Company hereunder shall survive any such transfer.  Except as provided in Section 8, no
Person other than the parties hereto and their successors and permitted assigns
is intended to be a beneficiary of this Agreement.

 

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

 

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

 

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

 

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

 

24

 

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

 

(l)  Entire
Agreement.  This Agreement is
intended by the parties as a final expression of their agreement and intended
to be a complete and exclusive statement of the agreement and understanding of
the parties hereto with respect to the subject matter contained herein.  There are no restrictions, promises,
representations, warranties or undertakings with respect to the subject matter
contained herein, other than those set forth or referred to herein.  This Agreement supersedes all prior
agreements and understandings among the parties with respect to such subject
matter.

 

(m)  Further Assurances.  Each of the parties shall execute such
documents and perform such further acts as may be reasonably required or
desirable to carry out or to perform the provisions of this Agreement.

 

(n)  Other
Agreements.  Nothing contained
in this Agreement shall be deemed to be a waiver of, or release from, any
obligations any party hereto may have under, or any restrictions on the
transfer of Registrable Securities or other securities of the Company imposed
by, any other agreement including, but not limited to, the Stock Purchase
Agreement or the Stockholders Agreement.

 

[Remainder of page intentionally left blank]

 

25

 

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

 

	
   

  	
   

  	
  SSA GLOBAL TECHNOLOGIES, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Kirk Isaacson

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Kirk Isaacson

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  GENERAL ATLANTIC PARTNERS 76, L.P.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  GENERAL ATLANTIC PARTNERS, LLC,

  
	
   

  	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Matthew Nimetz

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Matthew Nimetz

  
	
   

  	
   

  	
   

  	
  Title:

  	
  A Managing Member

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  GAP COINVESTMENT PARTNERS II, L.P.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Matthew Nimetz

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Matthew Nimetz

  
	
   

  	
   

  	
   

  	
  Title:

  	
  A General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  GAPSTAR, LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  GENERAL ATLANTIC PARTNERS, LLC,

  
	
   

  	
   

  	
   

  	
  its Sole Member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Matthew Nimetz

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Matthew Nimetz

  
	
   

  	
   

  	
   

  	
  Title:

  	
  A Managing Member

  

 

 

	
   

  	
   

  	
  GAPCO GMBH & CO. KG

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  GAPCO MANAGEMENT GMBH,

  
	
   

  	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Matthew Nimetz

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Matthew Nimetz

  
	
   

  	
   

  	
   

  	
  Title:

  	
  A Managing Director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SSA INVESTOR, LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Mark A. Neporent

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Mark A. Neporent

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SSA WARRANT HOLDINGS, LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  ABLECO, L.L.C,

  
	
   

  	
   

  	
   

  	
  its Managing Member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Stephen A. Feinberg

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Stephen A. Feinberg

  
	
   

  	
   

  	
   

  	
  Title:

  	
  President and Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ABLECO, L.L.C.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Stephen A. Feinberg

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Stephen A. Feinberg

  
	
   

  	
   

  	
   

  	
  Title:

  	
  President and Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CERBERUS PARTNERS, L.P.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Cerberus Associates, L.L.C.,

  
	
   

  	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Stephen A. Feinberg

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Stephen A. Feinberg

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Managing Member

  

 

 

	
   

  	
   

  	
  CERBERUS INSTITUTIONAL PARTNERS, L.P.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  CERBERUS INSTITUTIONAL

  
	
   

  	
   

  	
   

  	
  ASSOCIATES, L.L.C.,

  
	
   

  	
   

  	
   

  	
   its General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Stephen A. Feinberg

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Stephen A. Feinberg

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Managing Member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MADELEINE L.L.C.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Mark A. Neporent

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Mark A. Neporent

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Vice President and Chief Operating

  
	
   

  	
   

  	
   

  	
   

  	
  OfficerExhibit
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

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