EX-10.1 2 mbsc8kex101012208.txt EXHIBIT 10.1 COMMON STOCK PURCHASE AGREEMENT BETWEEN MB SOFTWARE CORPORATION AND T SQUARED INVESTMENTS LLC DATED January 11th, 2008 COMMON STOCK PURCHASE AGREEMENT BETWEEN MB SOFTWARE CORPORATION AND T SQUARED INVESTMENTS LLC PAGE 1 OF 30 COMMON STOCK PURCHASE AGREEMENT ------------------------------- This COMMON STOCK PURCHASE AGREEMENT (the "Agreement") is made and entered into as of the 11 th day of January, 2008 (the "Effective Date"), between MB Software Corporation, a corporation organized and existing under the laws of the State of Texas ("MBSB" or the "Company") and T Squared Investments LLC, a Delaware limited liability company, ("T Squared Investments" or "Investor"). PRELIMINARY STATEMENT: ---------------------- WHEREAS, the Investor wishes to purchase from the Company, upon the terms and subject to the conditions of this Agreement, Eighty Six Thousand Two Hundred and Seven (86,207) shares of common stock of the Company for the Purchase Price set forth in Section 1.3.12 hereof. In addition, the Company will issue to the Investor two Common Stock Purchase Warrants (the "Warrants") to purchase up to an additional One Million Five Hundred Thousand (1,500,000) shares of common stock of the Company at exercise prices as stated in the Warrants; and WHEREAS, the parties intend to memorialize the purchase and sale of such Common Stock and the Warrants. NOW, THEREFORE, in consideration of the mutual covenants and premises contained herein, and for other good and valuable consideration, the receipt and adequacy of which are hereby conclusively acknowledged, the parties hereto, intending to be legally bound, agree as follows: COMMON STOCK PURCHASE AGREEMENT BETWEEN MB SOFTWARE CORPORATION AND T SQUARED INVESTMENTS LLC PAGE 2 OF 30 ARTICLE I INCORPORATION BY REFERENCE, SUPERSEDER AND DEFINITIONS ------------------------------------------------------ 1.1 Incorporation by Reference. The foregoing recitals and the Exhibits and Schedules attached hereto and referred to herein, are hereby acknowledged to be true and accurate, and are incorporated herein by this reference. 1.2 Superseder. This Agreement, to the extent that it is inconsistent with any other instrument or understanding among the parties governing the affairs of the Company, shall supersede such instrument or understanding to the fullest extent permitted by law. A copy of this Agreement shall be filed at the Company's principal office. 1.3 Certain Definitions. For purposes of this Agreement, the following capitalized terms shall have the following meanings (all capitalized terms used in this Agreement that are not defined in this Article 1 shall have the meanings set forth elsewhere in this Agreement): 1.3.1 "1933 Act" means the Securities Act of 1933, as amended. 1.3.2 "1934 Act" means the Securities Exchange Act of 1934, as amended. 1.3.3 "Affiliate" means a Person or Persons directly or indirectly, through one or more intermediaries, controlling, controlled by or under common control with the Person(s) in question. The term "control," as used in the immediately preceding sentence, means, with respect to a Person that is a corporation, the right to the exercise, directly or indirectly, of more than 50 percent of the voting rights attributable to the shares of such controlled corporation and, with respect to a Person that is not a corporation, the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such controlled Person. 1.3.4 "Articles" means the Certificate of Incorporation of the Company, as the same may be amended from time to time. 1.3.5 "Closing" shall mean the Closing of the transactions contemplated by this Agreement on the Closing Date. 1.3.6 [Reserved] 1.3.7 "Common Stock" means shares of common stock of the Company, par value $0.001 per share. 1.3.8 "Exempt Issuance" means the issuance of (a) shares of Common Stock or options to employees, officers, or directors of the Company pursuant to any stock or option plan duly adopted by a majority of the non-employee members of the Board of Directors of the Company or a majority of the members of a committee of non-employee directors established for COMMON STOCK PURCHASE AGREEMENT BETWEEN MB SOFTWARE CORPORATION AND T SQUARED INVESTMENTS LLC PAGE 3 OF 30 such purpose, (b) securities upon the exercise of or conversion of any securities currently issued and outstanding or issued hereunder, and (c) securities issued pursuant to acquisitions or strategic transactions, provided any such issuance shall only be to a Person which is, itself or through its subsidiaries, an operating company in a business synergistic with the business of the Company and in which the Company receives benefits in addition to the investment of funds, but shall not include a transaction in which the Company is issuing securities primarily for the purpose of raising capital or to an entity whose primary business is investing in securities. 1.3.9 "Material Adverse Effect" shall mean any adverse effect on the business, operations, properties or financial condition of the Company that is material and adverse to the Company and its subsidiaries and affiliates, taken as a whole and/or any condition, circumstance, or situation that would prohibit or otherwise materially interfere with the ability of the Company to perform any of its material obligations under this Agreement or the Registration Rights Agreement or to perform its obligations under any other material agreement. 1.3.10 "Texas Act" means the Texas Business Corporation Act, as amended. 1.3.11 "Person" means an individual, partnership, firm, limited liability company, trust, joint venture, association, corporation, or any other legal entity. 1.3.12 "Purchase Price" means the Fifty Thousand ($50,000) Dollars paid by the Investor to the Company for the Common Stock and the Warrants. 1.3.13 "Registration Rights Agreement" shall mean the registration rights agreement between the Investor and the Company attached hereto as Exhibit A. 1.3.14 "Registration Statement" shall mean the registration statement under the 1933 Act to be filed with the Securities and Exchange Commission for the registration of the Shares pursuant to the Registration Rights Agreement attached hereto as Exhibit A. 1.3.15 "SEC" means the Securities and Exchange Commission. 1.3.16 "SEC Documents" shall mean the Company's latest Form 10-K or 10-KSB as of the time in question, all Forms 10-Q or 10-QSB and 8-K filed thereafter, and the Proxy Statement for its latest fiscal year as of the time in question until such time as the Company no longer has an obligation to maintain the effectiveness of a Registration Statement as set forth in the Registration Rights Agreement. 1.3.17 "Shares" shall mean, collectively, the shares of Common Stock of the Company and those shares of Common Stock issuable to the Investor upon exercise of the Warrants. 1.3.18 "Subsequent Financing" shall mean any offer and sale of any equity security or debt that is initially convertible into shares of Common Stock. COMMON STOCK PURCHASE AGREEMENT BETWEEN MB SOFTWARE CORPORATION AND T SQUARED INVESTMENTS LLC PAGE 4 OF 30 1.3.19 "Transaction Documents" shall mean this Agreement, all Schedules and Exhibits attached hereto and all other documents and instruments to be executed and delivered by the parties in order to consummate the transactions contemplated hereby, including, but not limited to the documents listed in Sections 3.2 and 3.3 hereof. 1.3.20 "Warrants" shall mean the Common Stock Purchase Warrants in the form attached hereto Exhibit B. COMMON STOCK PURCHASE AGREEMENT BETWEEN MB SOFTWARE CORPORATION AND T SQUARED INVESTMENTS LLC PAGE 5 OF 30 ARTICLE II SALE AND PURCHASE OF COMPANY COMMON STOCK AND WARRANTS PURCHASE PRICE 2.1 Sale of Common Stock and Issuance of Warrants. (a) Upon the terms and subject to the conditions set forth herein, and in accordance with applicable law, the Company hereby sells to the Investor, and the Investor hereby purchases from the Company, on the Closing Date Eighty Six Thousand Two Hundred and Seven (86,207) shares of Common Stock and the Warrants for the price (the "Purchase Price") of Fifty Thousand ($50,000) Dollars. The Purchase Price shall be paid by the Investor to the Company on the Effective Date by a wire transfer or check of the Purchase Price. The Company shall cause the Common Stock and the Warrants to be issued to the Investor upon receipt of the wire by the Company. The Company shall register the shares of Common Stock and the shares underlying the Warrants pursuant to the terms and conditions of a Registration Rights Agreement attached hereto as Exhibit A. (b) Upon execution and delivery of this Agreement and the Company's receipt of the Purchase Price, the Company shall issue to the Investor the Warrant to purchase an aggregate of One Million Five Hundred Thousand (1,500,000) shares of Common Stock at exercise prices as stated in the Warrants, all pursuant to the terms and conditions of the form of Warrants attached hereto as Exhibit B; provided, however, that the Investor shall not be entitled to exercise the Warrants and receive shares of Common Stock that would result in beneficial ownership by the Investor and its affiliates of more than 4.9% of the then outstanding number of shares of Common Stock on such date. For the purposes of the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended, and Regulation 13d-3 thereunder. 2.2 Purchase Price. The Purchase Price shall be delivered by the Investor in the form of a check or wire transfer made payable to the Company in United States Dollars from the Investor to the Company on the Closing Date. COMMON STOCK PURCHASE AGREEMENT BETWEEN MB SOFTWARE CORPORATION AND T SQUARED INVESTMENTS LLC PAGE 6 OF 30 ARTICLE III CLOSING DATE AND DELIVERIES AT CLOSING 3.1 Closing. The closing of the transactions contemplated by this Agreement (the "Closing"), shall occur upon complete execution of this Agreement by the parties. 3.2 Deliveries by the Company. In addition to and without limiting any other provision of this Agreement, on or prior to the Effective Date, the Company shall deliver, or cause to be delivered the following: (a) An executed Agreement with all exhibits and schedules attached hereto; (b) At or prior to Closing, an executed Warrant in the name of the Investor in the form attached hereto as Exhibit B; (c) The executed Registration Rights Agreement; (d) Evidence of approval of the Board of Directors of the Company of the Transaction Documents and the transactions contemplated hereby; (e) Certificates of Existence or Authority to Transact Business of the Company issued by each of the Secretaries of State for Texas; (f) An opinion from the Company's counsel concerning the Transaction Documents and the transactions contemplated hereby in form and substance reasonably acceptable to Investor; (g) Stock Certificate in the name of Investor evidencing the Common Stock. (h) Certifications in form and substance acceptable to the Company and the Investor from any and all brokers or agents involved in the transactions contemplated hereby as to the amount of commission or compensation payable to such broker or agent as a result of the consummation of the transactions contemplated hereby and from the Company or Investor, as appropriate, to the effect that reasonable reserves for any other commissions or compensation that may be claimed by any broker or agent have been set aside; (i) Copies of all current executive employment agreements; (j) All past and present financing documentation or other documentation where stock could potentially be issued or issued as payment; (k) All past and present litigation documents and historical financials; and (1) Such other documents or certificates as shall be reasonably requested by Investor or its counsel. 3.3 Deliveries by Investor. In addition to and without limiting any other provision of this Agreement, the Investor agrees to deliver, or cause to be delivered, the following: (a) The Purchase Price, paid in accordance with Section 2.2; (b) The executed Agreement with all Exhibits and Schedules attached hereto; (c) The executed Registration Rights Agreement; and COMMON STOCK PURCHASE AGREEMENT BETWEEN MB SOFTWARE CORPORATION AND T SQUARED INVESTMENTS LLC PAGE 7 OF 30 (d) Such other documents or certificates as shall be reasonably requested by the Company or its counsel. In the event any document provided to the other party in Paragraphs 3.2 and 3.3 herein are provided by facsimile, the party shall forward an original document to the other party within seven (7) business days. 3.4 Further Assurances. The Company and the Investor shall, upon request, on or after the Closing Date, cooperate with each other (specifically, the Company shall cooperate with the Investor, and the Investor shall cooperate with the Company) by furnishing any additional information, executing and delivering any additional documents and/or other instruments and doing any and all such things as may be reasonably required by the parties or their counsel to consummate or otherwise implement the transactions contemplated by this Agreement. 3.5 Waiver. The Investor may waive any of the requirements of Section 3.2 of this Agreement, and the Company at its discretion may waive any of the provisions of Section 3.3 of this Agreement. COMMON STOCK PURCHASE AGREEMENT BETWEEN MB SOFTWARE CORPORATION AND T SQUARED INVESTMENTS LLC PAGE 8 OF 30 ARTICLE IV REPRESENTATIONS AND WARRANTIES OF COMPANY The Company represents and warrants to the Investor as of the date hereof and as of Closing (which warranties and representations shall survive the Closing regardless of what examinations, inspections, audits and other investigations the Investor has heretofore made or may hereinafter make with respect to such warranties and representations) as follows: 4.1 Organization and Qualification. The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Texas, and has the requisite corporate power and authority to own, lease and operate its properties and to carry on its business as it is now being conducted and is duly qualified to do business in any other jurisdiction by virtue of the nature of the businesses conducted by it or the ownership or leasing of its properties, except where the failure to be so qualified will not, when taken together with all other such failures, have a Material Adverse Effect on the business, operations, properties, assets, financial condition or results of operation of the Company and its subsidiaries taken as a whole. 4.2 Articles of Incorporation and By-Laws. The complete and correct copies of the Company's Articles and By-Laws, as amended or restated to date which have been filed with the Securities and Exchange Commission are a complete and correct copy of such document as in effect on the date hereof and as of the Closing Date. 4.3 Capitalization. 4.3.1 The authorized and outstanding capital stock of the Company is set forth in The Company's Annual Report on Form I0-KSB, filed on December 3rd, 2007 with the Securities and Exchange Commission and updated on all subsequent SEC Documents. All shares of capital stock have been duly authorized and are validly issued, and are fully paid and no assessable, and free of preemptive rights. 4.3.2 Except pursuant to this Agreement and as set forth in Schedule 4.3 hereto, and as set forth in the Company's SEC Documents, filed with the SEC, as of the date hereof and as of the Closing Date, there are not now outstanding options, warrants, rights to subscribe for, calls or commitments of any character whatsoever relating to, or securities or rights convertible into or exchangeable for, shares of any class of capital stock of the Company, or agreements, understandings or arrangements to which the Company is a party, or by which the Company is or may be bound, to issue additional shares of its capital stock or options, warrants, scrip or rights to subscribe for, calls or commitment of any character whatsoever relating to, or securities or rights convertible into or exchangeable for, any shares of any class of its capital stock. The Company agrees to inform the Investors in writing of any additional warrants granted prior to the Closing Date. COMMON STOCK PURCHASE AGREEMENT BETWEEN MB SOFTWARE CORPORATION AND T SQUARED INVESTMENTS LLC PAGE 9 OF 30 4.3.3 The Company on the Closing Date (i) will have full right, power, and authority to sell, assign, transfer, and deliver, by reason of record and beneficial ownership, to the Investor, the Common Stock sold to Investor pursuant to this Agreement, free and clear of all liens, charges, claims, options, pledges, restrictions, and encumbrances whatsoever; and (ii) upon exercise of the Warrants, the Investor will acquire good and marketable title to such Shares, free and clear of all liens, charges, claims, options, pledges, restrictions, and encumbrances whatsoever, except as otherwise provided in this Agreement as to the limitation on the voting rights of such Shares in certain circumstances. 4.4 Authority. The Company has all requisite corporate power and authority to execute and deliver this Agreement, the Common Stock, and the Warrants, to perform its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby. The execution and delivery of this Agreement by the Company and the consummation of the transactions contemplated hereby have been duly authorized by all necessary corporate action and no other corporate proceedings on the part of the Company is necessary to authorize this Agreement or to consummate the transactions contemplated hereby except as disclosed in this Agreement. This Agreement has been duly executed and delivered by the Company and constitutes the legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms. 4.5 No Conflict; Required Filings and Consents. The execution and delivery of this Agreement by the Company does not, and the performance by the Company of their respective obligations hereunder will not: (i) conflict with or violate the Articles or By-Laws of the Company; (ii) conflict with, breach or violate any federal, state, foreign or local law, statute, ordinance, rule, regulation, order, judgment or decree (collectively, "Laws") in effect as of the date of this Agreement and applicable to the Company; or (iii) result in any breach of, constitute a default (or an event that with notice or lapse of time or both would become a default) under, give to any other entity any right of termination, amendment, acceleration or cancellation of, require payment under, or result in the creation of a lien or encumbrance on any of the properties or assets of the Company pursuant to, any note, bond, mortgage, indenture, contract, agreement, lease, license, permit, franchise or other instrument or obligation to which the Company is a party or by the Company or any of its properties or assets is bound. Excluding from the foregoing are such violations, conflicts, breaches, defaults, terminations, accelerations, creations of liens, or incumbency that would not, in the aggregate, have a Material Adverse Effect. COMMON STOCK PURCHASE AGREEMENT BETWEEN MB SOFTWARE CORPORATION AND T SQUARED INVESTMENTS LLC PAGE 10 OF 30 4.6 Report and Financial Statements. The Company's Annual Report on Form 10-KSB, filed on December 3rd, 2007 with the SEC contains the audited financial statements of the Company for year end December 31st, 2006. The Company has previously provided to the Investor the audited financial statements of the Company for the three months ended September 30th, 2007 and for the nine months ended September 30th, 2007 (collectively, the "Financial Statements"). Each of the balance sheets contained in or incorporated by reference into any such Financial Statements (including the related notes and schedules thereto) fairly presented the financial position of the Company, as of its date, and each of the statements of income and changes in stockholders' equity and cash flows or equivalent statements in such Financial Statements (including any related notes and schedules thereto) fairly presents, changes in stockholders' equity and changes in cash flows, as the case may be, of the Company, for the periods to which they relate, in each case in accordance with United States generally accepted accounting principles ("U.S. GAAP"), as applied by the SEC, consistently applied during the periods involved, except in each case as may be noted therein, subject to normal year-end audit adjustments in the case of unaudited statements. The books and records of the Company have been, and are being, maintained in all material respects in accordance with U.S. GAAP and any other applicable legal and accounting requirements and reflect only actual transaction. 4.7 Compliance with Applicable Laws. The Company is not in violation of, or, to the knowledge of the Company is under investigation with respect to or has been given notice or has been charged with the violation of any Law of a governmental agency, except for violations which individually or in the aggregate do not have a Material Adverse Effect. 4.8 Brokers. Except as set forth on Schedule 4.8, no broker, finder or investment banker is entitled to any brokerage, finder's or other fee or Commission in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of the Company. 4.9 SEC Documents. The Company acknowledges that the Company is a publicly held company and has made available to the Investor after demand true and complete copies of any requested SEC Documents. The Company has registered its Common Stock pursuant to Section 12(d) or 15(d) of the 1934 Act, and the Common Stock is quoted and traded on the OTC Bulletin Board of the National Association of Securities Dealers, Inc. The Company has received no notice, either oral or written, with respect to the continued quotation or trading of the Common Stock on the OTC Bulletin Board. [Note: This is already included under Section 4.14]As of their respective dates, the SEC Documents complied in all material respects with the requirements of the 1934 Act, and rules and regulations of the SEC promulgated thereunder and the SEC Documents did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. COMMON STOCK PURCHASE AGREEMENT BETWEEN MB SOFTWARE CORPORATION AND T SQUARED INVESTMENTS LLC PAGE 11 OF 30 4.10 Litigation. To the knowledge of the Company, no litigation, claim, or other proceeding before any court or governmental agency is pending or to the knowledge of the Company, threatened against the Company, the prosecution or outcome of which may have a Material Adverse Effect. 4.11 Exemption from Registration. Subject to the accuracy of the Investor's representations in Article V, except as required pursuant to the Registration Rights Agreement, the sale of the Common Stock and Warrants by the Company to the Investor will not require registration under the 1933 Act, but may require registration under New York state securities law if applicable to the Investor. Upon exercise of the Warrants in accordance with their terms, the Shares underlying the Warrants will be duly and validly issued, fully paid, and non-assessable. The Company is issuing the Common Stock and the Warrants in accordance with and in reliance upon the exemption from securities registration afforded, inter alia, by Rule 506 under Regulation D as promulgated by the SEC under the 1933 Act, and/or Section 4(2) of the 1933 Act; provided, however, that certain filings and registrations may be required under state securities "blue sky" laws depending upon the residency of the Investor. 4.12 No General Solicitation or Advertising in Regard to this Transaction. Neither the Company nor any of its Affiliates nor, to the knowledge of the Company, any Person acting on its or their behalf (i) has conducted or will conduct any general solicitation (as that term is used in Rule 502(c) of Regulation D as promulgated by the SEC under the 1933 Act) or general advertising with respect to the sale of the Common Stock or Warrants, or (ii) made any offers or sales of any security or solicited any offers to buy any security under any circumstances that would require registration of the Common Stock or Warrants, under the 1933 Act, except as required herein. 4.13 No Material Adverse Effect. Except as set forth in Schedule 4.13 attached hereto, no event or circumstance resulting in a Material Adverse Effect has occurred or exists with respect to the Company. No material supplier or customer has given notice, oral or written, that it intends to cease or reduce the volume of its business with the Company from historical levels. No event or circumstance has occurred or exists with respect to the Company or its businesses, properties, prospects, operations or financial condition, that, under any applicable law, rule or regulation, requires public disclosure or announcement prior to the date hereof by the Company but which has not been so publicly announced or disclosed in writing to the Investor. 4.14 Material Non-Public Information. The Company has not disclosed to the Investors any material non-public information that (i) if disclosed, would reasonably be expected to have a material effect on the price of the Common Stock or (ii) according to applicable law, rule or regulation, should have been disclosed publicly by the Company prior to the date hereof but which has not been so disclosed. COMMON STOCK PURCHASE AGREEMENT BETWEEN MB SOFTWARE CORPORATION AND T SQUARED INVESTMENTS LLC PAGE 12 OF 30 4.15 Internal Controls And Procedures. The Company maintains books and records and internal accounting controls which provide reasonable assurance that (i) all transactions to which the Company or any subsidiary is a party or by which its properties are bound are executed with management's authorization; (ii) the recorded accounting of the Company's consolidated assets is compared with existing assets at regular intervals; (iii) access to the Company's consolidated assets is permitted only in accordance with management's authorization; and (iv) all transactions to which the Company or any subsidiary is a party or by which its properties are bound are recorded as necessary to permit preparation of the financial statements of the Company in accordance with U.S. generally accepted accounting principles. 4.16 Full Disclosure. No representation or warranty made by the Company in this Agreement and no certificate or document furnished or to be furnished to the Investor pursuant to this Agreement contains or will contain any untrue statement of a material fact, or omits or will omit to state a material fact necessary to make the statements contained herein or therein not misleading. COMMON STOCK PURCHASE AGREEMENT BETWEEN MB SOFTWARE CORPORATION AND T SQUARED INVESTMENTS LLC PAGE 13 OF 30 ARTICLE V REPRESENTATIONS AND WARRANTIES OF THE INVESTOR The Investor represents and warrants to the Company that: 5.1 Organization and Standing of the Investor. The Investor is a limited liability company duly formed, validly existing and in good standing under the laws of the State of Delaware. The state in which any offer to purchase shares hereunder was made or accepted by such Investor is the state shown as such Investor's address. The Investor was not formed for the purpose of investing solely in the Common Stock, the Warrants or the shares of Common Stock which are the subject of this Agreement. 5.2 Authorization and Power. The Investor has the requisite power and authority to enter into and perform this Agreement and to purchase the securities being sold to it hereunder. The execution, delivery and performance of this Agreement by the Investor and the consummation by the Investor of the transactions contemplated hereby have been duly authorized by all necessary partnership action where appropriate. This Agreement and the Registration Rights Agreement have been duly executed and delivered by the Investor and at the Closing shall constitute valid and binding obligations of the Investor enforceable against the Investor in accordance with their terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, conservatorship, receivership or similar laws relating to, or affecting generally the enforcement of, creditors' rights and remedies or by other equitable principles of general application. 5.3 No Conflicts. The execution, delivery and performance of this Agreement and the consummation by the Investor of the transactions contemplated hereby or relating hereto do not and will not (i) result in a violation of such Investor's charter documents or bylaws where appropriate or (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of any agreement, indenture or instrument to which the Investor is a party, or result in a violation of any law, rule, or regulation, or any order, judgment or decree of any court or governmental agency applicable to the Investor or its properties (except for such conflicts, defaults and violations as would not, individually or in the aggregate, have a Material Adverse Effect on such Investor). The Investor is not required to obtain any consent, authorization or order of, or make any filing or registration with, any court or governmental agency in order for it to execute, deliver or perform any of such Investor's obligations under this Agreement or to purchase the securities from the Company in accordance with the terms hereof; provided that for purposes of the representation made in this sentence, the Investor is assuming and relying upon the accuracy of the relevant representations and agreements of the Company herein. 5.4 Financial Risks. The Investor acknowledges that such Investor is able to bear the financial risks associated with an investment in the securities being purchased by the Investor COMMON STOCK PURCHASE AGREEMENT BETWEEN MB SOFTWARE CORPORATION AND T SQUARED INVESTMENTS LLC PAGE 14 OF 30 from the Company and that it has been given full access to such records of the Company and the subsidiaries and to the officers of the Company and the subsidiaries as it has deemed necessary or appropriate to conduct its due diligence investigation. The Investor is capable of evaluating the risks and merits of an investment in the securities being purchased by the Investor from the Company by virtue of its experience as an investor and its knowledge, experience, and sophistication in financial and business matters and the Investor is capable of bearing the entire loss of its investment in the securities being purchased by the Investor from the Company. 5.5 Accredited Investor. The Investor is (i) an "accredited investor" as that term is defined in Rule 501 of Regulation D promulgated under the 1933 Act by reason of Rule 501(a)(3) and (6), (ii) experienced in making investments of the kind described in this Agreement and the related documents, (iii) able, by reason of the business and financial experience of its officers (if an entity) and professional advisors (who are not affiliated with or compensated in any way by the Company or any of its affiliates or selling agents), to protect its own interests in connection with the transactions described in this Agreement, and the related documents, and (iv) able to afford the entire loss of its investment in the securities being purchased by the Investor from the Company. 5.6 Brokers. Except as set forth in Schedule 4.8, no broker, finder or investment banker is entitled to any brokerage, finder's or other fee or Commission in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of the Investor. 5.7 Knowledge of Company. The Investor and such Investor's advisors, if any, have been, upon request, furnished with all materials relating to the business, finances and operations of the Company and materials relating to the offer and sale of the securities being purchased by the Investor from the Company. The Investor and such Investor's advisors, if any, have been afforded the opportunity to ask questions of the Company and have received complete and satisfactory answers to any such inquiries. 5.8 Risk Factors. The Investor understands that such Investor's investment in the securities being purchased by the Investor from the Company involves a high degree of risk. The Investor understands that no United States federal or state agency or any other government or governmental agency has passed on or made any recommendation or endorsement of the securities being purchased by the Investor from the Company. The Investor warrants that such Investor is able to bear the complete loss of such Investor's investment in the securities being purchased by the Investor from the Company. 5.9 Full Disclosure. No representation or warranty made by the Investor in this Agreement and no certificate or document furnished or to be furnished to the Company pursuant to this Agreement contains or will contain any untrue statement of a material fact, or omits or will omit to state a material fact necessary to make the statements contained herein or therein not misleading. Except as set forth or referred to in this Agreement, Investor does not have any agreement or understanding with any person relating to acquiring, holding, voting or disposing of any equity securities of the Company. COMMON STOCK PURCHASE AGREEMENT BETWEEN MB SOFTWARE CORPORATION AND T SQUARED INVESTMENTS LLC PAGE 15 OF 30 ARTICLE VI COVENANTS OF THE COMPANY 6.1 Registration Rights. The Company shall cause the Registration Rights Agreement to remain in full force and effect according to the provisions of the Registration Rights Agreement and the Company shall comply in all material respects with the terms thereof. 6.2 Reservation of Common Stock. As of the date hereof, the Company has reserved and the Company shall continue to reserve and keep available at all times, free of preemptive rights, shares of Common Stock for the purpose of enabling the Company to issue the shares of Common Stock and the shares of Common Stock underlying the Warrants. 6.3 Compliance with Laws. The Company hereby agrees to comply in all respects with the Company's reporting, filing and other obligations under the Laws. 6.4 Exchange Act Registration. The Company (a) will continue its obligation to report to the SEC under Section E 12(d) of the 1934 Act and will use its best efforts to comply in all respects with its reporting and filing obligations under the 1934 Act, and will not take any action or file any document (whether or not permitted by the 1934 Act or the rules thereunder) to terminate or suspend any such registration or to terminate or suspend its reporting and filing obligations under the 1934 until the Investors have disposed of all of their Shares. 6.5 Corporate Existence; Conflicting Agreements. The Company will take all steps necessary to preserve and continue the corporate existence of the Company. The Company shall not enter into any agreement, the terms of which agreement would restrict or impair the right or ability of the Company to perform any of its obligations under this Agreement or any of the other agreements attached as exhibits hereto. COMMON STOCK PURCHASE AGREEMENT BETWEEN MB SOFTWARE CORPORATION AND T SQUARED INVESTMENTS LLC PAGE 16 OF 30 ARTICLE VII COVENANTS OF THE INVESTOR 7.1 Compliance with Law. The Investor's trading activities with respect to shares of the Company's Common Stock will be in compliance with all applicable state and federal securities laws, rules and regulations and rules and regulations of any public market on which the Company's Common Stock is listed. 7.2 Transfer Restrictions. The Investor's acknowledge that (1) the Common Stock, Warrants and shares underlying Warrants have not been registered under the provisions of the 1933 Act, and may not be transferred unless (A) subsequently registered thereunder or (B) the Investor shall have delivered to the Company an opinion of counsel, reasonably satisfactory in form, scope and substance to the Company, to the effect that the Common Stock, Warrants and shares underlying Warrants to be sold or transferred may be sold or transferred pursuant to an exemption from such registration; and (2) any sale of the Common Stock, Warrants and shares underlying the Warrants made in reliance on Rule 144 promulgated under the 1933 Act may be made only in accordance with the terms of said Rule and further, if said Rule is not applicable, any resale of such securities under circumstances in which the seller, or the person through whom the sale is made, may be deemed to be an underwriter, as that term is used in the 1933 Act, may require compliance with some other exemption under the 1933 Act or the rules and regulations of the SEC thereunder. 7.3 Restrictive Legend. The Investor acknowledges and agrees that the Common Stock, the Warrants and the Shares underlying the Warrants, and, until such time as the Common Stock and Shares underlying and Warrants have been registered under the 1933 Act and sold in accordance with an effective Registration Statement, certificates and other instruments representing any of the Shares, shall bear a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of any such securities): "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS AND NEITHER SUCH SHARES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR (2) IN ACCORDANCE WITH THE PROVISIONS OF REGULATIONS, OR (3) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT." COMMON STOCK PURCHASE AGREEMENT BETWEEN MB SOFTWARE CORPORATION AND T SQUARED INVESTMENTS LLC PAGE 17 OF 30 ARTICLE XI GENERAL PROVISIONS 11.1 Transaction Costs. Except as otherwise provided herein, each of the parties shall pay all of his or its costs and expenses (including attorney fees and other legal costs and expenses and accountants' fees and other accounting costs and expenses) incurred by that party in connection with this Agreement. 11.2 Indemnification. The Investor agrees to indemnify, defend and hold the Company (following the Closing Date) and its officers and directors harmless against and in respect of any and all claims, demands, losses, costs, expenses, obligations, liabilities or damages, including interest, penalties and reasonable attorney's fees, that it shall incur or suffer, which arise out of or result from any breach of this Agreement by such Investor or failure by such Investor to perform with respect to any of its representations, warranties or covenants contained in this Agreement or in any exhibit or other instrument furnished or to be furnished under this Agreement. The Company agrees to indemnify, defend and hold the Investor harmless against and in respect of any and all claims, demands, losses, costs, expenses, obligations, liabilities or damages, including interest, penalties and reasonable attorney's fees, that it shall incur or suffer, which arise out of, result from or relate to any breach of this Agreement or failure by the Company to perform with respect to any of its representations, warranties or covenants contained in this Agreement or in any exhibit or other instrument furnished or to be furnished under this Agreement. In no event shall the Company or the Investors be entitled to recover consequential or punitive damages resulting from a breach or violation of this Agreement nor shall any party have any liability hereunder in the event of gross negligence or willful misconduct of the indemnified party. In the event of a breach of this Agreement by the Company, the Investor shall be entitled to pursue a remedy of specific performance upon tender into the Court an amount equal to the Purchase Price hereunder. The indemnification by the Investor shall be limited to $10,000.00. 11.3 Headings. The table of contents and headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. 11.4 Entire Agreement. This Agreement (together with the Schedule, Exhibits, Warrants and documents referred to herein) constitute the entire agreement of the parties and supersede all prior agreements and undertakings, both written and oral, between the parties, or any of them, with respect to the subject matter hereof. 11.5 Notices. All notices and other communications hereunder shall be in writing and shall be deemed to have been given (i) on the date they are delivered if delivered in person; (ii) on the date initially received if delivered by facsimile transmission followed by registered or certified mail confirmation; (iii) on the date delivered by an overnight courier service; or (iv) on the third COMMON STOCK PURCHASE AGREEMENT BETWEEN MB SOFTWARE CORPORATION AND T SQUARED INVESTMENTS LLC PAGE 18 OF 30 business day after it is mailed by registered or certified mail, return receipt requested with postage and other fees prepaid as follows: If to the Company: MB Software Corporation 777 Main Street, Suite 3100 Fort Worth, Texas 76102 Attention: Scott A. Haire With a copy to: Colbert Johnston LLP 6021 Morriss Road, Suite 101 Flower Mound, Texas 75028 Facsimile No.: 972-724-1922 Attn: Robert J. Johnston, Esq. If to the Investor: T Squared Investments LLC c/o T Squared Capital LLC 1325 Sixth Avenue, Floor 28 New York, New York 10019 Attn: Thomas M. Sauve 11.6 Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon such determination that any such term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the extent possible. 11.7 Binding Effect. AU the terms and provisions of this Agreement whether so expressed or not, shall be binding upon, inure to the benefit of, and be enforceable by the parties and their respective administrators, executors, legal representatives, heirs, successors and assignees. COMMON STOCK PURCHASE AGREEMENT BETWEEN MB SOFTWARE CORPORATION AND T SQUARED INVESTMENTS LLC PAGE 19 OF 30 11.8 Preparation of Agreement. This Agreement shall not be construed more strongly against any party regardless of who is responsible for its preparation. The parties acknowledge each contributed and is equally responsible for its preparation. 11.9 Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York, without giving effect to applicable principles of conflicts of law. 11.10 Jurisdiction. This Agreement shall be exclusively governed by and construed in accordance with the laws of the State of New York. If any action is brought among the parties with respect to this Agreement or otherwise, by way of a claim of counterclaim, the parties agree that in any such action, and on all issues, the parties irrevocably waive their right to a trial by jury. Exclusive jurisdiction and venue for any such action shall be the Federal Courts serving the State of New York. In the event suite or action is brought by any party under this Agreement to enforce any of its terms, or in any appeal therefrom, it is agreed that the prevailing party shall be entitled to reasonable attorneys fees to be fixed by the arbitrator, trial court, and/or appellate court. 11.11 Preparation and Filing of Securities and Exchange Commission filings. The Investor shall reasonably assist and cooperate with the Company in the preparation of all filings with the SEC after the Closing Date due after the Closing Date. 11.12 Further Assurances, Cooperation. Each party shall, upon reasonable request by the other party, execute and deliver any additional documents necessary or desirable to complete the transactions herein pursuant to and in the manner contemplated by this Agreement. The parties hereto agree to cooperate and use their respective best efforts to consummate the transactions contemplated by this Agreement. 11.13 Survival. The representations, warranties, covenants and agreements made herein shall survive the Closing of the transaction contemplated hereby. 11.14 Third Parties. Except as disclosed in this Agreement, nothing in this Agreement, whether express or implied, is intended to confer any rights or remedies under or by reason of this Agreement on any persons other than the parties hereto and their respective administrators, executors, legal representatives, heirs, successors and assignees. Nothing in this Agreement is intended to relieve or discharge the obligation or liability of any third persons to any party to this Agreement, nor shall any provision give any third persons any right of subrogation or action over or against any party to this Agreement. 11.15 Failure or Indulgence Not Waiver; Remedies Cumulative. No failure or delay on the part of any party hereto in the exercise of any right hereunder shall impair such right or be construed to be a waiver of, or acquiescence in, any breach of any representation, warranty, covenant or agreement herein, nor shall nay single or partial exercise of any such right preclude COMMON STOCK PURCHASE AGREEMENT BETWEEN MB SOFTWARE CORPORATION AND T SQUARED INVESTMENTS LLC PAGE 20 OF 30 other or further exercise thereof or of any other right. All rights and remedies existing under this Agreement are cumulative to, and not exclusive of, any rights or remedies otherwise available. 11.16 Counterparts. This Agreement may be executed in one or more counterparts, and by the different parties hereto in separate counterparts, each of which when executed shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement. A facsimile transmission of this signed Agreement shall be legal and binding on all parties hereto. [SIGNATURES ON FOLLOWING PAGE] COMMON STOCK PURCHASE AGREEMENT BETWEEN MB SOFTWARE CORPORATION AND T SQUARED INVESTMENTS LLC PAGE 21 OF 30 IN WITNESS WHEREOF, the Investors and the Company have as of the date first written above executed this Agreement. THE COMPANY: MB Software Corporation /s/ Scott Haire --------------- By: Scott A. Haire Title: Chief Executive Officer INVESTOR: T Squared Investments LLC By: T Squared Capital LLC, Managing Member By: /s/ Thomas Sauve -------------------- Thomas Sauve Managing Member 1325 Sixth Avenue, Floor 28 New York NY 10019 COMMON STOCK PURCHASE AGREEMENT BETWEEN MB SOFTWARE CORPORATION AND T SQUARED INVESTMENTS LLC PAGE 22 OF 30 Schedule A ---------- NUMBER OF SHARES AMOUNT OF NUMBER OF SHARES UNDERLYING NAME AND ADDRESS INVESTMENT OF COMMON STOCK WARRANTS ---------------- ---------- --------------- -------- T Squared Investments LLC 1325 Sixth Avenue, Floor 28 New York, New York 10019 $50,000 86,207 1,500,000 Attn: Thomas M. Sauve COMMON STOCK PURCHASE AGREEMENT BETWEEN MB SOFTWARE CORPORATION AND T SQUARED INVESTMENTS LLC PAGE 23 OF 30 Schedule 4.8 -- List of Brokers ------------------------------- COMMON STOCK PURCHASE AGREEMENT BETWEEN MB SOFTWARE CORPORATION AND T SQUARED INVESTMENTS LLC PAGE 24 OF 30 Schedule 4.13 -- Material Adverse Effect ---------------------------------------- COMMON STOCK PURCHASE AGREEMENT BETWEEN MB SOFTWARE CORPORATION AND T SQUARED INVESTMENTS LLC PAGE 25 OF 30 Exhibit A --------- Registration Rights Agreement ----------------------------- COMMON STOCK PURCHASE AGREEMENT BETWEEN MB SOFTWARE CORPORATION AND T SQUARED INVESTMENTS LLC PAGE 26 OF 30 Exhibit B --------- Warrants -------- COMMON STOCK PURCHASE AGREEMENT BETWEEN MB SOFTWARE CORPORATION AND T SQUARED INVESTMENTS LLC PAGE 27 OF 30