Diamond Technology
Partners, Inc. (“Diamond Technology”) and Karl Bupp
(“Employee”) enter into this Employment Agreement
(“Agreement”) dated April 18, 1994 (the
“Effective Date”).
In consideration
of the agreements and covenants contained in the Agreement, Diamond
Technology and Employee agree as follows:
1.
Employment Duties . Diamond Technology shall employ Employee
as an officer of Diamond Technology and be identified within the
organization as a “Partner.” Employee shall have such
responsibilities, duties and authority, consistent with those of an
executive employee, as may be assigned to him/her by Diamond
Technology’s management, officers and partners
(“Management”) and agrees to perform such duties as
Diamond Technology may from time-to-time request. In addition,
Employee shall, at the direction of Management, participate in the
administration and execution of Diamond Technology’s
policies, business affairs, and operations. Employee shall perform
faithfully the duties assigned to him/her and shall devote his/her
full and undivided time and attention and his/her best efforts to
the business of Diamond Technology.
2.
Salary . As compensation for Employee’s services,
Diamond Technology shall initially credit to Employee a level of
base compensation at the annual rate listed in Exhibit A to
this Agreement: a portion of the Employee’s base compensation
will be paid to him/her at Diamond Technology’s regular
executive payroll intervals, and the balance will be deferred and
the payment thereof will be subject to various qualifications and
conditions as set forth in the Diamond Technology’s
Partners’ Operating Agreement dated March 22, 1994
(“the Partners’ Operating Agreement”).
Employee’s base compensation shall be subject to annual
review and may, in accordance with the Partners’ Operating
Agreement be adjusted at the time of such reviews or at any other
time or times according to Employee’s responsibilities,
capabilities and performance.
3.
Bonus . Diamond Technology may elect to pay annual bonuses.
It is presently contemplated that Partners subject to a deferral of
a portion of salary will not be eligible to earn bonuses. The
decision to pay any bonuses and the actual payment of such bonuses,
if any, shall be at the sole discretion of Diamond
Technology.
4.
Employee Benefits . During the period of his/her employment,
Employee shall be entitled to participate in such employee benefit
plans, including group pension, life and health insurance and other
medical benefits, and shall receive such other fringe benefits, as
Diamond Technology may make available generally to
Partners.
5.
Business Expenses . Diamond Technology shall reimburse
Employee for all reasonable and necessary business expenses
incurred by Employee in performing his/her duties. Employee shall
provide Diamond Technology with supporting documentation sufficient
to satisfy reporting requirements of the Internal Revenue Service
and Diamond Technology. Diamond Technology’s determination as
to reasonableness and necessity shall be final.
6.
Non-Disclosure and Non-Competition . Employee acknowledges
that the successful marketing and development of Diamond
Technology’s professional services and products requires
substantial time and expense. Such efforts utilize and generate
valuable confidential and proprietary information, of which
Employee will obtain knowledge. As used herein, “Confidential
Information” means any information of Diamond Technology that
Diamond Technology considers to be proprietary and treats as
confidential or information of any third party that Diamond
Technology is under an obligation to keep confidential, including,
but not limited to, the following: inventions, products, business
strategies, plans, proposals, deliverables, prospect and customer
lists, methodologies, training materials, computer software,
documents, models, source code, designs, know how, techniques,
systems, processes, works of authorship, projects, plans, proposals
and flow charts, and listings of any or all of the foregoing. All
Confidential Information is and shall at all times remain the
exclusive property of Diamond Technology. Confidential Information
does not include: (i) information that at the time of
disclosure is in the public domain through no fault of
Employee’s; (ii) information received from a third party
outside of Diamond Technology that was disclosed without a breach
of any confidentiality obligation; (iii) information approved
for release by written authorization of Diamond Technology; or
(iv) information that may be required by law or an order of
any court, agency or proceeding to be disclosed. Employee agrees to
undertake the following obligations, which he/she acknowledges to
be reasonably designed to protect Diamond Technology’s
legitimate business interests without unnecessarily or unreasonably
restricting Employee’s post-employment
opportunities:
(a) Employee
agrees that he/she will not at any time, whether during or after
the cessation of his/her employment, reveal to any person or any
entity any of the Confidential Information, except, and only to the
extent, as may be required in the ordinary course of performing
Employee’s assigned duties as an employee of Diamond
Technology, and Employee agrees to keep secret, and take all
necessary precautions against disclosure of, all Confidential
Information and all matters entrusted to him/her and not to use or
attempt to use any Confidential Information in any manner that may
cause injury or loss, or may be calculated to cause injury or loss,
whether directly or indirectly, to the Company or its
clients;
(b) Employee
agrees that during his/her employment he/she shall not take, use or
permit to be used any notes, memoranda, reports, lists, records,
drawings, sketches, specifications, software programs, data,
documentation or other materials of any nature relating to any
matter within the scope of the business of Diamond Technology
or
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concerning any
of its dealings or affairs otherwise than for the benefit of
Diamond Technology;
(c) Upon
cessation of his/her employment relationship with Diamond
Technology, Employee shall deliver to Diamond Technology all
Confidential Information and other materials in his/her possession
or delivered to him/her by Diamond Technology, including but not
limited to computer programs, files, notes, records, memoranda,
reports, lists, drawings, sketches, specifications, data, charts,
and other documents, materials and things
(“Materials”), whether or not containing Confidential
Information, prepared by Employee in connection with his/her
employment by Diamond Technology, it being agreed that all
Materials shall be and remain the sole and exclusive property of
Diamond Technology;
(d) Without
limiting the obligations of paragraph 6(c), Employee agrees that
while Employee is employed by Diamond Technology and for a period
of eighteen months following cessation of his/her employment
relationship with Diamond Technology, he/she will not, whether
alone or as owner, partner, officer, director, consultant, agent,
employee independent contractor, or stockholder of any firm,
corporation or other commercial enterprise, directly or indirectly
solicit engagements with: (i) any client of Diamond Technology
for whom Diamond Technology performed services within the one year
period preceding his/her cessation of employment, or (ii) any
current client prospect of Diamond Technology for whom Employee
directly or indirectly assisted in the preparation or submission of
a proposal made by Diamond Technology to such client prospect
during the one year period preceding his/her cessation of
employment, unless Diamond Technology acknowledges in writing its
intent not to further pursue such client prospect; Employee shall,
however, be permitted to own securities of any public company not
in excess of five percent (5%) of any class of such securities and
to own stock, partnership interests or other securities of any
non-public entity not in excess of five percent (5%) of any class
of such securities, and such ownership shall not be considered to
be in competition with Diamond Technology;
(e) While
employed and during the eighteen month period immediately following
cessation of Employee’s employment relationship with Diamond
Technology for any reason, Employee shall not, directly or
indirectly, solicit any employee of Diamond Technology to work for
any person, partnership or entity other than Diamond Technology, or
engage in any activity that would cause any employee to violate any
agreement with Diamond Technology, or dissuade, or attempt to
dissuade, any such employee from faithfully discharging such
employee’s contractual and fiduciary obligations to serve
Diamond Technology’s interests with undivided
loyalty.
7.
Remedies . Employee recognizes and agrees that a breach of
any or all of the provisions of paragraph 6 will constitute
immediate and irreparable harm to Diamond Technology for which
damages cannot be readily calculated and for which damages are an
inadequate remedy. Accordingly, Employee acknowledges that in
addition to any and all
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remedies at
law, Diamond Technology shall be entitled to specific performance
or injunctive or other equitable relief to prevent the violation of
Employee’s obligations under this Agreement.
8.
Intellectual Property . During the employment period,
Employee shall disclose immediately to Diamond Technology all
ideas, inventions and business plans that he/she makes, conceives,
discovers or develops during the course of his/her employment with
Diamond Technology, including but not limited to any inventions,
modifications, discoveries, developments, improvements, computer
programs, processes, products or procedures (whether or not
protectable upon application by copyright, patent trademark, trade
secret or other proprietary rights) (“Work Product”)
that: (i) relate to the business of Diamond Technology or any
customer or supplier to Diamond Technology or any of the products
or services being developed, manufactured, sold or otherwise
provided by Diamond Technology or that may be used in relation
therewith; or (ii) result from tasks assigned to Employee by
Diamond Technology; or (iii) result from the use of the
premises or personal property (whether tangible or intangible)
owned, leased or contracted for by Diamond Technology. Employee
agrees that any Work Product shall be the property of Diamond
Technology and, if subject to copyright, shall be considered a
“work made for hire” within the meaning of the
Copyright Act of 1976, as amended (the “Act”). If and
to the extent that any such Work Product is found as a matter of
law not to be a “work made for hire” within the meaning
of the Act, Employee expressly assigns to Diamond Technology all
right, title and interest in and to the Work Product, and all
copies thereof, and the copyright, patent, trademark, trade secret
and all their proprietary rights in the Work Product, without
further consideration, free from any claim, lien for balance due or
rights of retention thereto on the part of Employee.
Employee
agrees that upon disclosure of Work Product to Diamond Technology,
Employee will, during his/her employment and at any time
thereafter, at the request and cost of Diamond Technology, execute
all such documents and perform all such acts as Diamond Technology
or its duly authorized agents may reasonably require: (i) to
apply for, obtain and vest in the name of Diamond Technology alone
(unless Diamond Technology otherwise directs) letters patent,
copyrights or other analogous protection in any country throughout
the world, and when so obtained or vested to renew and restore the
same; and (ii) to defend any opposition proceedings in respect
of such applications and any opposition proceedings or petitions or
applications for revocation of such letters patent, copyright or
other analogous protection.
In
the event that Diamond Technology is unable, after reasonable
effort, to secure Employee’s signature on any letters patent,
copyright or other analogous protection relating to Work Product,
whether because of Employee’s physical or mental incapacity
or for any other reason whatsoever, Employee hereby irrevocably
designates and appoints Diamond Technology and its duly authorized
officers and agents as his/her agent and attorney-in-fact, to act
for and on his/her behalf to execute and file any such application
or applications and to do all other lawfully permitted acts to
further the prosecution and
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issuance of
letters patent, copyright and other analogous protection with the
same legal force and effect as if personally executed by
Employee.
9.
Costs and Expenses of Enforcement . Employee agrees to
reimburse Diamond Technology for all costs and expenses, including
reasonable attorneys’ fees, incurred by Diamond Technology in
connection with the enforcement of its rights under any provision
of this Agreement; provided, however, that Diamond Technology
agrees to seek reimbursement only for matters, including acts or
omissions (whether direct or indirect), done knowingly, willfully
or intentionally in disregard of Employee’s obligations under
this Agreement.
10.
Indemnity . Provided that Employee performs all of his
duties and obligations under this Agreement, Diamond Technology
agrees to defend, indemnify and hold Employee harmless from and
against all damages, liability and expenses, including reasonable
attorney’s fees, arising as a result of claims brought
against Employee by his/her latest employer preceding his/her
employment with Diamond Technology (“Previous
Employer”): (i) alleging any breach, for the benefit of
Diamond Technology, of Employee’s obligations to the Previous
Employer with respect to Confidential Information of the Previous
Employer; (ii) based upon Diamond Technology’s hiring of
Employee; or (iii) that are deemed by Diamond Technology, in
its sole discretion, to be frivolous or harassing. Notwithstanding
the foregoing, Diamond Technology shall have no indemnification
obligations under this Agreement or otherwise in respect of any
willful or intentional breach of the Employee’s obligations
to the Previous Employer with respect to Confidential Information
of the Previous Employer.
11.
Assignment . Employee acknowledges that the services to be
rendered pursuant to this Agreement are unique and personal.
Accordingly, Employee may not assign any of his/her rights or
delegate any of his/her duties or obligations under this Agreement.
Diamond Technology may assign its this Agreement to its successors
or assigns, or to a subsidiary or to a purchaser or transferee of
all, or substantially all, of the assets of Diamond Technology, and
all covenants and agreements of Employee under this Agreement shall
inure to the benefit of and be enforceable by such successors,
assigns, subsidiaries, purchasers or transferees.
12.
Notices . All notices hereunder shall be in writing. Notices
intended for Diamond Technology shall be sent by registered or
certified mail addressed to Diamond Technology at 444 North
Michigan Avenue, Suite 3600, Chicago, Illinois 60611, or its
current principal office, and notices intended for Employee shall
be either delivered personally to him/her or sent by registered or
certified mail addressed to his/her last known address.
13.
Entire Agreement . This Agreement constitutes the entire
agreement between Diamond Technology and Employee with respect to
the subject matter hereof and supersedes any and all other prior or
contemporary oral or written representations or
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agreements
between the parties regarding such subject matter; however, it is
mutually acknowledged that the parties may enter into a
Partners’ Operating Agreement governing the relationships
among the Partners, including certain matters relating to
compensation and to the payment of the deferred portion of base
compensation. Subsequent to the Effective Date, this Agreement
specifically supersedes any prior non-disclosure agreement executed
by Employee; provided, however, that the terms and conditions of
any such prior agreement remain in full force and effect for the
period between execution of such agreement and the Effective Date
of this Agreement. Neither Employee nor Diamond Technology may
modify this Agreement by oral agreements, promises or
representations. The parties may modify this Agreement only by a
written instrument executed by both parties.
14.
Applicable Law . This Agreement shall be governed by, and
construed in accordance with, the laws of the State of Illinois.
Diamond Technology and Employee consent to jurisdiction and venue
only in the Circuit Court of Cook County, Illinois, or the Federal
District Court for the Northern District of Illinois.
15.
Severability . Employee acknowledges that the type and
periods of restriction imposed in the provisions of this Agreement
are fair and reasonable and are reasonably required for the
protection of Diamond Technology and the goodwill associated with
the business of Diamond Technology. Each provision herein shall be
treated as a separate and independent clause, and the
unenforceability of any one clause shall in no way impair the
enforceability of any of the other clauses herein. If any provision
contained in this Agreement shall for any reason be held to be
prohibited by, or invalid under, applicable law, or to be
excessively broad as to scope, activity or subject so as to be
unenforceable at law, such provision shall be construed to be
ineffective only to the extent of such prohibition without
invalidating the remainder of such provision or the remaining
provisions of this Agreement or, in the case of a provision found
to be excessively broad, by limiting and reducing such provision so
as to permit such provision to be enforceable to the maximum extent
compatible with the applicable law as it shall then
appear.
16.
Waiver . The failure of Diamond Technology to exercise any
right hereunder shall not operate or be construed as a waiver of
any right hereunder. Employee’s obligations under this
Agreement shall survive the cessation of employment regardless of
the manner of such termination and shall be binding on
Employee’s heirs, executors, administrators and legal
representatives.
17.
No Term of Employment . As revised, nothing in this
Agreement shall be deemed to create any term of employment, it
being expressly understood and agreed that Employee’s
employment is at will and that either party may terminate such
employment at any time.
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18.
Acknowledgment . Employee acknowledges that he/she has read
and understood, and accepts, the provisions of this
Agreement.
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EMPLOYEE
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/s/ Karl E.
Bupp
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Karl
Bupp
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DIAMOND
TECHNOLOGY PARTNERS, INC.
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By:
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/s/ Melvyn E.
Bergstein
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Melvyn E.
Bergstein
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BASE SALARY:
$200,000; subject to paragraph D of the Partners’ Operating
Agreement incorporated herein by this reference.
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AMENDMENT TO EMPLOYMENT
AGREEMENT
BY AND BETWEEN
DIAMOND TECHNOLOGY PARTNERS, INC.
AND EMPLOYEE
Diamond Technology
Partners, Inc. (“Diamond Technology”) and Karl E. Bupp
(“Employee”) enter into this Amendment to Employment
Agreement (“Amendment”).
In consideration
of the agreements and covenants contained in the Employment
Agreement and this Amendment, and to effect Diamond
Technology’s indemnification of Employee as herein set forth,
Diamond Technology and Employee agree as follows:
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1.
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Paragraph 10 of the Agreement,
entitled “Indemnity” is hereby stricken and the
following language is hereby substituted in its stead:
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Indemnity . Provided that Employee performs
all of his duties and obligations under this Agreement, Diamond
Technology agrees to defend, indemnify and hold Employee harmless
from and against all damages, liability and expenses, including
reasonable attorney’s fees, arising as a result of:
(a) claims brought against Employee by his/her latest Employer
preceding his/her employment with Diamond Technology
(“Previous Employer”) (i) alleging any breach, for
the benefit of Diamond Technology, of Employee’s obligations
to the Previous Employer with respect to Confidential Information
of the Previous Employer; (ii) based upon Diamond
Technology’s hiring of Employee; or (iii) that are
deemed by Diamond Technology, in its sole discretion, to be
frivolous or harassing; or (b) claims brought by any client of
Diamond Technology alleging the breach of any duty owed by Diamond
Technology or Employee to such client. Notwithstanding the
foregoing, Diamond Technology shall have no indemnification
obligations: (x) under clause (a) of the preceding
sentence of this Paragraph 10, or otherwise, in respect of any
willful or intentional misconduct or breach of the Employee’s
obligations to the Previous Employer with respect to Confidential
Information of the Previous Employer; or (y) under clause
(b) of the preceding sentence of this Paragraph 10, or
otherwise, in respect of any willful or intentional misconduct or
breach by the Employee of the Employee’s obligations to
Diamond Technology; or (z) arising from or relating to any
Employee action that is outside the scope of his/her
employment.
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2.
Acknowledgement . Employee acknowledges that he/she has read
and understood, and accepts, the provisions of this
Amendment.
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EMPLOYEE
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/s/
Karl E. Bupp
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Karl
E. Bupp
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DIAMOND
TECHNOLOGY PARTNERS, INC.
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By:
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/s/ Melvyn E. Bergstein
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Melvyn E. Bergstein
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AMENDMENT NUMBER TWO TO
EMPLOYMENT AGREEMENT
BY AND BETWEEN
DIAMOND TECHNOLOGY PARTNERS, INC.
AND EMPLOYEE
This is an
amendment (“Amendment”), dated as of November 30,
1994, to a certain Employment Agreement dated April 18, 1994,
between Diamond Technology Partners, Inc. (“Diamond
Technology”) and Karl E. Bupp (“Employee”), as
previously amended (the “Employment
Agreement”).
In consideration
of the agreements and covenants contained in the Employment
Agreement and this Amendment and for other good and valuable
consideration, the receipt and sufficiency of which is hereby
acknowledged, Diamond Technology and Employee agree as
follows:
1. The
Employment Agreement is hereby amended by adding thereto a new
paragraph 18, which shall read as follows:
“18.
Charitable Contributions .
(a)
Effective April 1, 1995, Employee will contribute in each
calendar year during his/her employment with Diamond Technology, at
least two percent (2%) of Employee’s gross base compensation
in effect for the then current calendar year, to charities approved
by the Operations Committee (as defined in the Partners’
Operating Agreement). All such contributions will be made pursuant
to policies established from time to time by the Operations
Committee. Employee authorizes Diamond Technology to make any
deductions, including, without limitation, periodic deductions,
from base compensation payable to Employee, in accordance with such
policies.
(b)
The Operations Committee will approve charities on an ongoing basis
from time to time and will publish the list of approved charities.
Employee may request approval for charities not already on the list
of approved charities from the Operations Committee no later than
thirty (30) days prior to the end of any calendar year for
contributions made during that year.
(c)
Diamond Technology will match, up to two percent (2%) of
Employee’s gross base compensation, the amount of any
contributions made by, or directed to be made on behalf of, the
Employee to any colleges or universities where Diamond Technology
recruits or intends to recruit for new employees. The Operations
Committee will maintain and publish a list of such colleges and
universities. The Operations Committee may from time to time limit
or eliminate Diamond Technology’s matching contribution
obligation if it determines that to do so would be in the best
business interests of Diamond Technology.
2.
Acknowledgement . Employee acknowledges that he/she has read
and understood, and accepts, the provisions of this
Amendment.
IN WITNESS
WHEREOF, the undersigned have executed this Amendment Number Two to
Employment Agreement by and between Diamond Technology Partners,
Inc. and Employee as of the date first written above.
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EMPLOYEE
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/s/ Karl E.
Bupp
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DIAMOND
TECHNOLOGY PARTNERS, INC.
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By:
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/s/ Melvyn E.
Bergstein
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Melvyn E.
Bergstein
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THIRD AMENDMENT TO
DIAMOND TECHNOLOGY PARTNERS, INC.
PARTNERS’ OPERATING AGREEMENT
This is an
amendment (“Amendment”), dated as of April 27,
1995, to a certain Diamond Technology Partners, Inc.
Partners’ Operating Agreement dated March 22, 1994, as
amended by a certain First Amendment to Diamond Technology
Partners, Inc. Partners’ Operating Agreement dated
June 24, 1994 and a certain Second Amendment to Diamond
Technology Partners, Inc. Partners’ Operating Agreement dated
as of November 30, 1994 (as thus amended, the “Operating
Agreement”), each between Diamond Technology Partners, Inc.
(“DTP”) and certain shareholders of DTP; this Amendment
is made between DTP, Melvyn E. Bergstein (“Bergstein”)
as holder of the Proxy granted under the Operating Agreement, and
all of the persons who are now “Partners” (as defined
in the Operating Agreement).
In consideration
of the mutual promises set forth in the Operating Agreement and of
the continuing mutual interests of the Partners in the success of
DTP and for other good and valuable consideration, the receipt,
sufficiency and adequacy of which is hereby acknowledged, the
parties, in accordance with paragraph 6.3 of the Operating
Agreement, hereby agree as follows:
1. The first
paragraph of Article D of the Operating Agreement is hereby
amended so as to read, in its entirety, as follows:
“A
Deferred Compensation Plan is hereby instituted for all Partners of
DTP, provided, however, that with respect to each Partner who joins
DTP after February 28, 1995, such Partner shall not
participate in the Deferred Compensation Plan unless such Partner
elects to do so by notice in writing to DTP and DTP approves in its
sole discretion such election. For purposes hereof, “Base
Compensation” shall mean the base compensation established
for a Partner for a particular year pursuant to the procedures set
forth in Article C hereof. The amount payable to a Partner
during the fiscal year shall be the equivalent, at normal payroll
intervals, of his Base Compensation less the percentage thereof
constituting the “Deferred Credit,” as set forth below;
the balance of Base Compensation shall be accrued as a liability by
DTP and charged against its earnings but shall not be paid to the
Partner, nor funded in any way, except as provided in this
Article D.”
2.
Section E. 1.(a) of the Operating Agreement is hereby amended,
so as to read, in its entirety, as follows:
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“(a)
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The
Partners other than the departing Partner (the “Remaining
Partners”) shall have the exclusive right to accept the offer
and to purchase all (but not less than all) of the offered Stock.
The offer may be accepted by all or by fewer than all of the
Remaining Partners, pro rata (based on their
respective holdings of Stock) or non- pro rata , but
it may not be accepted unless at least a majority of Remaining
Partners have agreed that all or any of the Remaining Partners
shall be permitted to purchase the offered Stock; the Remaining
Partners shall vote on the matter within
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five (5) days of the date of
the notice from the CEO informing them of their right to purchase
the offered Stock. If the Remaining Partners so determine that all
or any of the Remaining Partners shall be permitted to purchase the
offered Stock, then such Stock shall be offered to the Remaining
Partners in the following manner:
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(i)
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Within five (5) days of the
vote of the Remaining Partners, any Remaining Partners desiring to
purchase any of the offered Stock shall notify the CEO of the
number of shares he or she has elected to purchase and the CEO
shall promptly notify all of the Partners of such
elections.
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(ii)
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If
greater than all of the offered Stock is subscribed for, then
each
Remaining Partner who subscribed for shares may only purchase his
or her pro rata share of the offered Stock based on
the then current holdings of each such Remaining Partner, or as
otherwise agreed upon by such Partners.
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(iii)
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If
less than all of the offered Stock is subscribed for, then each
Remaining Partner who subscribed for shares, may purchase his or
her pro rata share of the unsubscribed shares based on the
then current holdings of each such Remaining Partner, or as
otherwise agreed upon by such Partners.
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(iv)
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If
all of the offered Stock is not subscribed for, then the Remaining
Partners shall be deemed to have declined to purchase the offered
Stock. If all of the offered Stock is subscribed for, then at least
a majority of the Remaining Partners must approve who the
purchasers shall be and the allocation of the offered Stock among
them and notify the CEO of the same within the appropriate time
period for the CEO to respond to the offering Partner. In the event
the approval required by the preceding sentence is not obtained,
then the Remaining Partners shall be deemed to have declined to
purchase the offered Stock.
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For purposes of
this Section, each Partner who owns any options to purchase Stock
shall be deemed to own that number of shares that would be issuable
upon the exercise of the options, without consideration to vesting.
To accept, the CEO must deliver to the offering Partner, the
Company and the Investors, on behalf of the purchasing Partners,
within twenty (20) days after the delivery of the notice to
the Remaining Partners required under Section E. 1 above, a
written notice of acceptance indicating that the purchase has been
approved by at least a majority of the Remaining Partners, who the
purchasers shall be and the allocation of the offered Stock among
the purchasers.”
3.
Section F.3.(c) of the Operating Agreement is hereby amended,
so as to read, in its entirety, as follows:
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“(c)
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The
Other Partners shall have the exclusive first right to accept the
offer and to purchase all (but not less than all) of the Offered
Securities. The offer may be accepted by all or fewer than all of
the Other Partners, pro rata (based on their
respective holdings of Stock) or non- pro rata, but
it may not be accepted unless at least a majority of the Other
Partners have agreed that all or any of the Other Partners shall be
permitted to purchase the Offered Securities; the Other Partners
shall vote on the matter within five (5) days of the date of
the notice from the CEO informing them of their right to purchase
the Offered Securities. If the Other Partners so determine that all
or any of the Other Partners shall be permitted to purchase the
Offered Securities, then such shares shall be offered to such
Partners in the following manner:
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(i)
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Within five (5) days of the
vote of the Other Partners, any of the Other Partners desiring to
purchase any of the Offered Securities shall notify the CEO of the
number of shares he or she has elected to purchase and the CEO
shall promptly notify all of the Other Partners of such
elections.
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(ii)
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If
greater than all of the Offered Securities is subscribed for, then
each Other Partner who subscribed for shares may only purchase his
or her pro rata share of the Offered Securities based on the
then current holdings of each such Other Partners, or as otherwise
agreed upon by such Partners.
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(iii)
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If
less than all of the Offered Securities is subscribed for, then
each Other Partner who subscribed for shares, may purchase his or
her pro rata share of the unsubscribed shares based
on the then current holdings of each such Other Partner, or as
otherwise agreed upon by such Partners
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(iv)
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If
all of the Offered Securities are not subscribed for, then the
Other Partners shall be deemed to have declined to purchase the
Offered Securities. In the event that all of the Offered Securities
are subscribed for, then at least a majority of the Other Partners
must approve who the purchasers shall be and the allocation of the
Offered Securities among them and notify the CEO of the same within
the appropriate time period for the CEO to respond to the
Prospective Transferor. In the event the approval required by the
preceding sentence is not obtained, then the other Partners shall
be deemed to have declined to purchase the Offered
Securities.
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In the case of
Partners who own options to purchase Stock, for purpose of
determining such Partners’ rights to participate pro
rata with the Other Partners, each such Partner shall be
deemed to own that number of shares that would be issuable upon the
exercise of the options without consideration to vesting. To
accept, the CEO must deliver to the Prospective Transferor, the
Company and the Investors, on behalf of the purchasing Partners,
within twenty (20) days after the delivery of the notice to
the Other Partners
-3-
required under
Section F.3(a) hereof, a written notice of acceptance
indicating that the purchase has been approved by at least a
majority of the Other Partners, who the purchasers shall be and the
allocation of the Offered Securities among them.”
This Amendment may
be signed in any number of counterparts, each of which shall be
deemed an original and all of which together shall be deemed one
and the same agreement.
IN WITNESS
WHEREOF, the parties have executed this Third Amendment to Diamond
Technology Partners, Inc. Partners’ Operating Agreement on
the date first written above.
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DIAMOND
TECHNOLOGY PARTNERS, INC
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By:
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/s/ Karl E.
Bupp
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Karl E.
Bupp
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-4-
Diamond Technology
Partners, Inc. (“Diamond Technology”) and Adam J.
Gutstein (“Employee”) enter into this Employment
Agreement (“Agreement”) dated March 16, 1994 (the
“Effective Date”).
In consideration
of the agreements and covenants contained in the Agreement, Diamond
Technology and Employee agree as follows:
1.
Employment Duties . Diamond Technology shall employ Employee
as an officer of Diamond Technology and be identified within the
organization as a “Partner.” Employee shall have such
responsibilities, duties and authority, consistent with those of an
executive employee, as may be assigned to him/her by Diamond
Technology’s management, officers and partners
(“Management”) and agrees to perform such duties as
Diamond Technology may from time-to-time request. In addition,
Employee shall, at the direction of Management, participate in the
administration and execution of Diamond Technology’s
policies, business affairs, and operations. Employee shall perform
faithfully the duties assigned to him/her and shall devote his/her
full and undivided time and attention and his/her best efforts to
the business of Diamond Technology.
2.
Salary . As compensation for Employee’s services,
Diamond Technology shall initially credit to Employee a level of
base compensation at the annual rate listed in Exhibit A to
this Agreement: a portion of the Employee’s base compensation
will be paid to him/her at Diamond Technology’s regular
executive payroll intervals, and the balance will be deferred and
the payment thereof will be subject to various qualifications and
conditions as set forth in the Diamond Technology’s
Partners’ Operating Agreement dated March 22, 1994
(“the Partners’ Operating Agreement”).
Employee’s base compensation shall be subject to annual
review and may, in accordance with the Partners’ Operating
Agreement be adjusted at the time of such reviews or at any other
time or times according to Employee’s responsibilities,
capabilities and performance.
3.
Bonus . Diamond Technology may elect to pay annual bonuses.
It is presently contemplated that Partners subject to a deferral of
a portion of salary will not be eligible to earn bonuses. The
decision to pay any bonuses and the actual payment of such bonuses,
if any, shall be at the sole discretion of Diamond
Technology.
4.
Employee Benefits . During the period of his/her employment,
Employee shall be entitled to participate in such employee benefit
plans, including group pension, life and health insurance and other
medical benefits, and shall receive such other fringe benefits, as
Diamond Technology may make available generally to
Partners.
5.
Business Expenses . Diamond Technology shall reimburse
Employee for all reasonable and necessary business expenses
incurred by Employee in performing his/her duties. Employee shall
provide Diamond Technology with supporting documentation sufficient
to satisfy reporting requirements of the Internal Revenue Service
and Diamond Technology. Diamond Technology’s determination as
to reasonableness and necessity shall be final.
6.
Non-Disclosure and Non-Competition . Employee acknowledges
that the successful marketing and development of Diamond
Technology’s professional services and products requires
substantial time and expense. Such efforts utilize and generate
valuable confidential and proprietary information, of which
Employee will obtain knowledge. As used herein, “Confidential
Information” means any information of Diamond Technology that
Diamond Technology considers to be proprietary and treats as
confidential or information of any third party that Diamond
Technology is under an obligation to keep confidential, including,
but not limited to, the following: inventions, products, business
strategies, plans, proposals, deliverables, prospect and customer
lists, methodologies, training materials, computer software,
documents, models, source code, designs, know how, techniques,
systems, processes, works of authorship, projects, plans, proposals
and flow charts, and listings of any or all of the foregoing. All
Confidential Information is and shall at all times remain the
exclusive property of Diamond Technology. Confidential Information
does not include: (i) information that at the time of
disclosure is in the public domain through no fault of
Employee’s; (ii) information received from a third party
outside of Diamond Technology that was disclosed without a breach
of any confidentiality obligation; (iii) information approved
for release by written authorization of Diamond Technology; or
(iv) information that may be required by law or an order of
any court, agency or proceeding to be disclosed. Employee agrees to
undertake the following obligations, which he/she acknowledges to
be reasonably designed to protect Diamond Technology’s
legitimate business interests without unnecessarily or unreasonably
restricting Employee’s post-employment
opportunities:
(a) Employee
agrees that he/she will not at any time, whether during or after
the cessation of his/her employment, reveal to any person or any
entity any of the Confidential Information, except, and only to the
extent, as may be required in the ordinary course of performing
Employee’s assigned duties as an employee of Diamond
Technology, and Employee agrees to keep secret, and take all
necessary precaution
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