Document:

Exhibit 10.46

 

 

SECURITIES EXCHANGE AGREEMENT

 

among

 

SSA GLOBAL TECHNOLOGIES, INC.,

 

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

 

	
  ARTICLE I DEFINITIONS

  	
   

  
	
  1.1

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II EXCHANGE

  	
   

  
	
  2.1

  	
  Exchange

  	
   

  
	
  2.2

  	
  Deliveries of
  Securities

  	
   

  
	
  2.3

  	
  Certificate
  of Incorporation

  	
   

  
	
  2.4

  	
  Closing

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III
  REPRESENTATIONS AND WARRANTIES OF THE COMPANY

  	
   

  
	
  3.1

  	
  Corporate
  Existence and Power

  	
   

  
	
  3.2

  	
  Authorization;
  No Contravention

  	
   

  
	
  3.3

  	
  Governmental
  Authorization; Third Party Consents

  	
   

  
	
  3.4

  	
  Consents and
  Approvals

  	
   

  
	
  3.5

  	
  HSR Act Filing

  	
   

  
	
  3.6

  	
  Binding Effect

  	
   

  
	
  3.7

  	
  Capitalization

  	
   

  
	
  3.8

  	
  No Material
  Judgment or Order

  	
   

  
	
  3.9

  	
  No Litigation

  	
   

  
	
  3.10

  	
  Purchase Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV
  REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS

  	
   

  
	
  4.1

  	
  Existence and Power

  	
   

  
	
  4.2

  	
  Authorization;
  No Contravention

  	
   

  
	
  4.3

  	
  Governmental
  Authorization; Third Party Consents

  	
   

  
	
  4.4

  	
  Binding Effect

  	
   

  
	
  4.5

  	
  Purchase for Own
  Account

  	
   

  
	
  4.6

  	
  Restricted
  Securities

  	
   

  
	
  4.7

  	
  Accredited Investor

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V DELIVERIES TO
  THE PURCHASERS

  	
   

  
	
  5.1

  	
  Secretary’s
  Certificate

  	
   

  
	
  5.2

  	
  Filing
  of Certificate of Incorporation

  	
   

  
	
  5.3

  	
  Purchased Shares

  	
   

  
	
  5.4

  	
  Stockholders
  Agreement

  	
   

  
	
  5.5

  	
  Registration
  Rights Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI DELIVERIES
  TO THE COMPANY

  	
   

  
	
  6.1

  	
  Exchange
  of the Exchange Securities and Exchange Indebtedness

  	
   

  
	
  6.2

  	
  Stockholders
  Agreement

  	
   

  
	
  6.3

  	
  Registration
  Rights Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII
  AFFIRMATIVE COVENANTS

  	
   

  

 

i

 

	
  7.1

  	
  Financial
  Statements and Other Information

  	
   

  
	
  7.2

  	
  Reservation of
  Common Stock

  	
   

  
	
  7.3

  	
  Insurance

  	
   

  
	
  7.4

  	
  Books and Records

  	
   

  
	
  7.5

  	
  Back-ups of
  Computer Software

  	
   

  
	
  7.6

  	
  Inspection

  	
   

  
	
  7.7

  	
  Intellectual Property

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII
  MISCELLANEOUS

  	
   

  
	
  8.1

  	
  Survival
  of Representations and Warranties

  	
   

  
	
  8.2

  	
  Notices

  	
   

  
	
  8.3

  	
  Successors
  and Assigns; Third Party Beneficiaries

  	
   

  
	
  8.4

  	
  Amendment and Waiver

  	
   

  
	
  8.5

  	
  Counterparts

  	
   

  
	
  8.6

  	
  Headings

  	
   

  
	
  8.7

  	
  GOVERNING
  LAW; CONSENT TO JURISDICTION

  	
   

  
	
  8.8

  	
  Severability

  	
   

  
	
  8.9

  	
  Rules of
  Construction

  	
   

  
	
  8.10

  	
  Entire Agreement

  	
   

  
	
  8.11

  	
  Fees

  	
   

  
	
  8.12

  	
  Further Assurances

  	
   

  

 

ii

 

	
  EXHIBITS

  	
   

  	
   

  
	
  A

  	
  Amended and Restated Subordinated Promissory Note

  	
   

  
	
  B

  	
  Form of By-laws

  	
   

  
	
  C

  	
  Form of Registration Rights Agreement

  	
   

  
	
  D

  	
  Form of Amended and Restated Certificate of
  Incorporation

  	
   

  
	
  E

  	
  Form of Stockholders Agreement

  	
   

  
	
  F

  	
  Purchase Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULES

  	
   

  	
   

  
	
  2.1

  	
  Exchanged Securities and Indebtedness and Purchased
  Shares

  	
   

  
	
  3.3

  	
  Authorizations and Consents

  	
   

  
	
  3.7(a)

  	
  List of Equity Holders

  	
   

  
	
  3.7(b)

  	
  List of Subsidiaries and their Equity Holders

  	
   

  

 

iii

 

SECURITIES EXCHANGE AGREEMENT

 

SECURITIES EXCHANGE
AGREEMENT, dated April 2, 2003 (this “Agreement”), among SSA Global
Technologies, Inc., a Delaware corporation (the “Company”), SSA
Investor, LLC (“SSA Investor”), SSA Warrant Holdings, LLC (“Senior
Warrantholder”), Ableco, L.L.C. (“Ableco”), Cerberus Partners, L.P.
(“Cerberus Partners”), Cerberus Institutional Partners, L.P. (“Cerberus
Institutional Partners”) and Madeleine L.L.C. (“Madeleine” and,
collectively with SSA Investor, Senior Warrantholder, Ableco, Cerberus Partners
and Cerberus Institutional Partners, the “Purchasers”).

 

WHEREAS, SSA
Investor, Senior Warrantholder, Ableco, Cerberus Partners and Cerberus
Institutional Partners hold (i) warrants to purchase shares of Common Stock (as
defined below), (ii) shares of Common Stock, (iii) shares of the Company’s
currently authorized, non-convertible Series A Preferred Stock and (iv) rights
under the Rights Agreement (as defined below), in each case as set forth
opposite such holder’s name on Schedule 2.1 hereto (each of (i),
(ii), (iii) and (iv), the “Exchange Securities”);

 

WHEREAS,
Madeleine has heretofore entered into that certain Subordinated Promissory Note
(as defined herein) with the Company in the principal amount of $125,000,000;

 

WHEREAS, pursuant to the
Stock Purchase Agreement (the “Purchase Agreement”), dated as of March 10,
2003, among the Company, Cerberus Capital Management, L.P. (“Cerberus”),
General Atlantic Partners 76, L.P. (“GAP LP”), GAP Coinvestment Partners
II, L.P. (“GAP Coinvestment”), GapStar, LLC (“GapStar”) and GAPCO
GmbH & Co. KG (“GmbH Coinvestment,” and collectively with GAP LP,
GAP Coinvestment, and Gap Star, the “GAP Purchasers”), the Company
proposes to issue and sell to each of the GAP Purchasers the aggregate number
of shares, par value $0.01 per share, of Series A Cumulative Convertible
Preferred Stock of the Company (the “Preferred Stock”) set forth
opposite the name of such GAP Purchaser on Schedule 2.1 to the
Purchase Agreement for the aggregate purchase price set forth opposite such GAP
Purchaser’s name on Schedule 2.1 to the Purchase Agreement;

 

WHEREAS, in connection
with the sale of Preferred Stock to the GAP Purchasers, the Company, the GAP
Purchasers and the Purchasers desire to recapitalize the Company through the
exchange of the Exchange Securities and the cancellation of $10,000,000 of
indebtedness under the Subordinated Promissory Note (as defined below) (the “Exchange
Indebtedness”), for an aggregate of 2,250,000 shares of Preferred Stock;
and

 

WHEREAS, each share of
Preferred Stock is initially convertible (subject to adjustment) into one
share, par value $0.01 per share, of common stock of the Company (the “Common
Stock”);

 

1

 

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:

 

ARTICLE I

 

DEFINITIONS

 

1.1                                 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.

 

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

 

“Amended and Restated
Subordinated Promissory Note” means the Amended and Restated Subordinated
Promissory Note attached hereto as Exhibit A.

 

“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.

 

“By-laws” means
the by-laws of the Company in effect on the Closing Date substantially in the
form attached hereto as Exhibit B, as the same may be amended from time
to time in accordance with the terms of the Stockholders Agreement.

 

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

 

“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.

 

“Certificate of
Incorporation” means the Second Amended and Restated Certificate of
Incorporation to be filed with the Secretary of State of the State of Delaware
on or before the Closing Date in the form attached hereto as Exhibit D,
which shall, among other things, set forth the terms of the Preferred Stock.

 

“Closing” has the
meaning set forth in Section 2.4 of this Agreement.

 

“Closing Date” has
the meaning set forth in Section 2.4 of this Agreement.

 

 

“Code” means the
Internal Revenue Code of 1986, as amended, or any successor statute thereto.

 

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

 

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

 

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

 

“Condition of the
Company” means the assets, business, properties, operations or financial
condition of the Company and its Subsidiaries, taken as a whole, but
determination of the Condition of the Company shall take into account any
adverse event, change or occurrence, effect, development or circumstance
resulting from or relating to general business, economic, industry or financial
market conditions, including, without limitation, any such conditions arising
out of acts of terrorism or war or any armed hostilities to the extent such
acts directly affect the Company or its assets or employees.

 

“Contractual
Obligations” means, as to any Person, any provision of any security issued
by such Person or of any agreement, undertaking, contract, indenture, mortgage,
deed of trust or other instrument to which such Person is a party or by which
it or any of its property is bound.

 

“Copyrights” means
any foreign or United States copyright registrations and applications for
registration thereof, and any non-registered copyrights.

 

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

 

“Exchange Securities”
shall have the meaning set forth in the recitals to this Agreement.

 

“Exchange Indebtedness”
shall have the meaning set forth in the recitals to this Agreement.

 

“GAAP” means
United States generally accepted accounting principles in effect from time to
time.

 

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

 

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

 

“GAP Purchasers”
has the meaning set forth in the recitals to this Agreement.

 

 

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

 

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

 

“Governmental
Authority” means the government of any nation, state, city, locality or
other political subdivision thereof, any entity exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining
to government, and any corporation or other entity owned or controlled, through
stock or capital ownership or otherwise, by any of the foregoing.

 

“HSR Act” has the
meaning set forth in Section 3.3.

 

“Infinium” means
Infinium Software, Inc., a Massachusetts corporation.

 

“Infinium Merger
Agreement” means that certain Agreement and Plan of Merger, dated as of October 28,
2002, by and among the Company, Newco and Infinium.

 

“Knowledge” means
the knowledge of Mike Greenough, Graeme Cooksley, John Walles, Kirk Isaacson,
Shelley Isenberg, Mark Rosenberg, Howard Sproxton, Marvyn Turk, Rick Gonzales,
Warren Fletcher, Oscar Garcia-Velasco, Martin Ambrose, Philip Gray and Brian
Kite, after reasonable inquiry of the persons who are primarily responsible for
the relevant areas of the Company’s business.

 

“Lien” means any
mortgage, deed of trust, pledge, hypothecation, assignment, encumbrance, lien
(statutory or other) or preference, priority, right or other security interest
or preferential arrangement of any kind or nature whatsoever.

 

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

 

“Merger” means the
merger of Newco with and into Infinium pursuant to the Infinium Merger
Agreement.

 

“Newco” means
Samurai Merger Subsidiary, Inc., a Massachusetts corporation.

 

“Orders” has the
meaning set forth in Section 3.2 of this Agreement.

 

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

 

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

 

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

 

 

“Purchased Shares”
has the meaning set forth in Section 2.1 of this Agreement.

 

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

 

“Registration Rights
Agreement” means the Registration Rights Agreement in the form attached
hereto as Exhibit C.

 

“Requirements of Law”
means, as to any Person, any law, statute, treaty, rule, regulation, right,
privilege, qualification, license or franchise or determination of an
arbitrator or a court or other Governmental Authority or stock exchange, in
each case applicable or binding upon such Person or any of its property or to
which such Person or any of its property is subject or pertaining to any or all
of the transactions contemplated or referred to herein.

 

“Rights Agreement”
means the Rights Agreement, dated as of July 31, 2000, between the Company
in its own capacity and the Company in its capacity as Rights Agent thereunder.

 

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

 

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

 

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

 

“Stock Equivalents”
means any security, obligation or right which is by its terms, directly or
indirectly, convertible into or exchangeable or exercisable for shares of
common stock or other capital stock of the Company, and any option, warrant or
other subscription or purchase right with respect to common stock or such other
capital stock.

 

“Stockholders
Agreement” means the Stockholders Agreement in the form attached hereto as Exhibit
E.

 

“Stock Option Plan”
means the Company’s stock option plan to be established by the Company after
the date hereof and pursuant to which an aggregate of up to 529,412 shares of
restricted stock and options to purchase shares of Common Stock will be
reserved and available for grant to officers, directors, employees and
consultants of the Company.

 

“Subordinated
Promissory Note” means the Subordinated Promissory Note, dated as of December 19,
2002, made by the Company in favor of Madeleine in the principal amount of
$125,000,000.

 

“Subsidiaries”
means, as of the relevant date of determination, with respect to any Person, a
corporation or other Person of which 50% or more of the voting 

 

 

power of the outstanding
voting equity securities or 50% or more of the outstanding economic equity
interest is held, directly or indirectly, by such Person.  Unless otherwise qualified, or the context
otherwise requires, all references to a “Subsidiary” or to “Subsidiaries”
in this Agreement shall refer to a Subsidiary or Subsidiaries of the Company; provided,
that unless expressly stated, such references shall not be deemed to include
(a) Infinium or any of its Subsidiaries, even though the Merger has been
completed prior to the Closing Date hereunder, or (b) any Person which the
Company shall have agreed to acquire after the date hereof, if the Company
holds 50% or more of the voting power of the outstanding voting equity
securities solely as a result of voting agreements and/or proxies executed by
stockholders of such Person in connection with such acquisition.

 

“Trademarks” means
any foreign or United States trademarks, service marks, trade dress, trade
names, brand names, designs and logos, corporate names, product or service
identifiers, whether registered or unregistered, and all registrations and
applications for registration thereof.

 

“Transaction Documents”
means, collectively, this Agreement, the Stockholders Agreement, the
Registration Rights Agreement, the Purchase Agreement and the Certificate of
Incorporation.

 

ARTICLE II

 

EXCHANGE

 

2.1                                 Exchange.  The Company and the Purchasers hereby agree
that on the Closing Date (as defined below) SSA Investor, Senior Warrantholder,
Ableco, Cerberus Partners and Cerberus Institutional Partners will exchange the
Exchange Securities with the Company, and Madeleine will cancel the Exchange
Indebtedness, in consideration of the issuance by the Company to the Purchasers
of an aggregate of 2,250,000 shares of Preferred Stock which shall be allocated
among the Purchasers as set forth on Schedule 2.1 hereto (the “Exchange”).  From and after the Closing Date, the Exchange
Securities and the Exchange Indebtedness shall have been cancelled for all
purposes.

 

2.2                                 Deliveries
of Securities.  At the closing of the Exchange
(the “Closing”), (a) Madeleine shall reduce the amount of
indebtedness under the Subordinated Promissory Note by $10,000,000 and execute
the Amended and Restated Promissory Note, and SSA Investor, Senior
Warrantholder, Ableco, Cerberus Partners and Cerberus Institutional Partners
shall deliver to the Company for cancellation all, but not less than all, of
the Exchange Securities by delivery of (i) the original Exchange Securities
duly endorsed in blank or accompanied by stock powers duly executed in blank
(as appropriate), together with such other forms or instruments of assignment
and conveyance as shall be required by the Company, or (ii) customary
affidavits of loss in such form as the Company may reasonably require, and (b)
in consideration of the foregoing, the Company shall deliver to the Purchasers
certificates representing an 

 

 

aggregate of 2,250,000 shares of Preferred Stock allocated among the
Purchasers as set forth on Schedule 2.1 hereto (collectively, the “Purchased
Shares”).

 

2.3                                 Certificate
of Incorporation.  The Purchased
Shares shall have the preferences and rights set forth in the Certificate of
Incorporation.

 

2.4                                 Closing.  Upon receipt of the deliveries set forth in
Articles V and VI, the Closing shall take place at the offices of Paul, Weiss,
Rifkind, Wharton & Garrison LLP, 1285 Avenue of the Americas, New York, New
York 10019-6064, at 10:00 a.m., local time, on the date hereof or at such
other time, place and date that the Company and the Purchasers may agree in
writing (the “Closing Date”).

 

ARTICLE III

 

REPRESENTATIONS AND WARRANTIES OF
THE COMPANY

 

The Company represents
and warrants to each of the Purchasers as follows:

 

3.1                                 Corporate
Existence and Power.  The Company
(a) is a corporation duly organized, validly existing and in good standing
under the laws of the jurisdiction of its incorporation; (b) has all
requisite power and authority to own and operate its property, to lease the
property it operates as lessee and to conduct the business in which it is
currently, or is proposed to be, engaged; and (c) is duly qualified as a
foreign corporation, licensed and in good standing under the laws of each
jurisdiction in which its ownership, lease or operation of property or the
conduct of its business requires such qualification, except where failure to so
qualify would not have a material adverse effect on the Condition of the
Company.  The Company has the corporate
power and authority to execute, deliver and perform its obligations under this
Agreement and each of the other Transaction Documents.

 

3.2                                 Authorization;
No Contravention.  The execution,
delivery and performance by the Company of this Agreement and each of the other
Transaction Documents that it is a party to and the transactions contemplated
hereby and thereby (a) have been duly authorized by all necessary
corporate or partnership action of the Company; (b) do not contravene the
terms of the Certificate of Incorporation or the By-laws, or the articles of
incorporation or by-laws or other organizational documents of any of the
Company’s Subsidiaries; (c) do not violate, conflict with or result in any
breach, default or contravention of (or with due notice or lapse of time or
both would result in any breach, default or contravention of), or the creation
of any Lien under, any Contractual Obligation of the Company or its
Subsidiaries or any Requirement of Law applicable to the Company or its Subsidiaries;
and (d) do not violate any judgment, injunction, writ, award, decree or
order of any nature (collectively, “Orders”) of any Governmental
Authority against, or binding upon, the Company or its Subsidiaries.

 

3.3                                 Governmental
Authorization; Third Party Consents. 
Except as set forth on Schedule 3.3 and except for filings required
under the Hart-Scott-Rodino 

 

 

Antitrust Improvements Act of 1976, as amended, and the rules and
regulations promulgated thereunder (the “HSR Act”), all of which have been
obtained, no approval, consent, compliance, exemption, authorization or other
action by, or notice to, or filing with, any Governmental Authority or any
other Person, and no lapse of a waiting period under a Requirement of Law, is
necessary or required in connection with the execution, delivery or performance
(including, without limitation, the issuance and delivery of the Purchased
Shares) by, or enforcement against, the Company of this Agreement and
the other Transaction Documents to which each such Person is a party or the
transactions contemplated hereby and thereby.

 

3.4                                 Consents
and Approvals.  All consents,
exemptions, authorizations, or other actions by, or notice to, or filings with,
Governmental Authorities and other Persons in respect of all Requirements of
Law and with respect to those Contractual Obligations of the Company which are
necessary or required in connection with the execution, delivery or performance
by, or enforcement against, the Company of this Agreement and each of the other
Transaction Documents have been obtained and are in full force and effect and
all applicable waiting periods have expired without any action being taken or
threatened which would have a material adverse effect on the Condition of the
Company.

 

3.5                                 HSR
Act Filing.  Any Person required in
connection with the contemplated transactions to file a notification and report
form in compliance with the HSR Act has filed such form and the applicable
waiting period with respect to each such form (including any extension thereof
by reason of a request for additional information) has expired or been
terminated.

 

3.6                                 Binding
Effect.  This Agreement and the
Purchase Agreement have been, and as of the Closing Date each of the other
Transaction Documents will have been, duly executed and delivered by the
Company, and this Agreement and the Purchase Agreement constitute, and as of
the Closing Date each of the other Transaction Documents will constitute, the
legal, valid and binding obligations of the Company enforceable against the
Company in accordance with their terms, except as enforceability may be limited
by applicable bankruptcy, insolvency, reorganization, fraudulent conveyance or
transfer, moratorium or similar laws affecting the enforcement of creditors’
rights generally or by equitable principles relating to enforceability
(regardless of whether considered in a proceeding at law or in equity).

 

3.7                                 Capitalization.

 

(a)                                  On
the Closing Date, after giving effect to the transactions contemplated by this
Agreement and the Purchase Agreement, the authorized capital stock of the
Company shall consist of (i) 7,000,000 of Common Stock, of which no shares are
issued and outstanding, (ii) 4,000,000 shares of preferred stock of
which 3,000,000 shares are issued and outstanding as Preferred Stock, and
(iii) 1,000,000 shares of undesignated “blank check” preferred stock.  On the Closing Date, after giving effect to
the transactions contemplated by this Agreement and the Purchase Agreement, one
share of Preferred Stock shall be convertible into one share of Common
Stock. 

 

 

Schedule 3.7(a) sets forth, as
of the Closing Date, after giving effect to the transactions contemplated by
this Agreement and the Purchase Agreement, a true and complete list of (x) the
stockholders of the Company (including any trust or escrow agent arrangement
created in connection with any employee stock option plan) and, opposite the
name of each stockholder, the amount of all outstanding shares of Common Stock
and Preferred Stock owned by such stockholder and (y) the holders of Stock
Equivalents and, opposite the name of each holder, the amount of Stock
Equivalents owned by such holder.  Except
as set forth on Schedule 3.7(a), as of the Closing Date, after
giving effect to the transactions contemplated by this Agreement and the
Purchase Agreement, no Stock Equivalents shall be outstanding, other than the
Preferred Stock.  The Company has
reserved an aggregate of 3,000,000 shares of Common Stock for issuance upon
conversion of the Preferred Stock. 
Except as set forth on Schedule 3.7(a) and except for the
Preferred Stock, as of the Closing Date, after giving effect to the
transactions contemplated by this Agreement and the Purchase Agreement, there
shall be no options, warrants, conversion privileges, subscription or purchase
rights or other rights presently outstanding to purchase or otherwise acquire
(i) any authorized but unissued, unauthorized or treasury shares of the
Company’s capital stock, (ii) any Stock Equivalents or (iii) any
other securities of the Company.  Except
as set forth on Schedule 3.7(a), as of the date hereof and as of
the Closing Date, there are or shall be, as the case may be, no commitments,
contracts, agreements, arrangements or understandings by the Company to issue
any shares of the Company’s capital stock or any Stock Equivalents or other
securities of the Company.  The Purchased
Shares are duly authorized, and when issued and delivered to the Purchasers in
accordance with this Agreement, will be validly issued, fully paid and
non-assessable, will be issued in compliance with the registration and
qualification requirements of all applicable federal, state and foreign
securities laws and will be free and clear of all other Liens (other than those
imposed by the Stockholders Agreement). 
The shares of Common Stock issuable upon conversion of the Purchased
Shares have been duly reserved for issuance upon conversion of the Purchased
Shares and, when issued in compliance with the provisions of the Certificate of
Incorporation, will be validly issued, fully paid and non-assessable and not
subject to any preemptive rights or similar rights that have not been satisfied
or waived and will be free and clear of all other Liens (other than those
imposed by the Stockholders Agreement). 
All of the issued and outstanding shares of Common Stock and Preferred
Stock are all duly authorized, validly issued, fully paid and non-assessable,
and were issued in compliance with the registration and qualification
requirements of all applicable federal, state and foreign securities laws.

 

(b)                                 Schedule 3.7(b)
sets forth, as of the Closing Date, a true and complete list of each of the
Subsidiaries of the Company and the names and ownership percentages of the
stockholders, members and partners of each such Subsidiary.  Except as set forth on Schedule 3.7(b),
the Company owns all of the issued and outstanding capital stock of the
Subsidiaries, free and clear of all Liens. 
All of such shares of capital stock are duly authorized, validly issued,
fully paid and non-assessable, and were issued in compliance with the
registration and qualification requirements of all applicable federal, state
and foreign securities laws.  Except as
set forth on Schedule 3.7(a) and Schedule 3.7(b), there
are no options, warrants, conversion privileges, subscription or purchase
rights or other rights presently outstanding to purchase or 

 

 

otherwise acquire any authorized but unissued, unauthorized or treasury
shares of capital stock or other securities of, or any proprietary interest in,
any of the Subsidiaries, and there is no outstanding security of any kind
convertible into or exchangeable for such shares or proprietary interest.  Except as set forth on Schedule 3.7(b),
neither the Company nor any of its Subsidiaries, owns any interest, or has a right
to acquire any interest, in any Person that is not a Subsidiary.

 

(c)                                  The
Purchased Shares to be purchased by the Purchasers hereunder represent, in
the aggregate, on the Closing Date, not less than 63.75% of the outstanding
shares of Common Stock on a fully diluted basis assuming the Stock Option Plan
had been adopted as of such date, the grant of all options that may be granted
under the Stock Option Plan and the exercise thereof and the conversion,
exercise or exchange of any outstanding securities into shares of Common Stock,
including, without limitation, all of the Purchased Shares.

 

3.8                                 No
Material Judgment or Order.  There is
not any Order of a court of competent jurisdiction or any ruling of any
Governmental Authority or any condition imposed under any Requirement of Law
which would, in the reasonable judgment of the Purchasers, (a) prohibit or
restrict (i) the purchase of the Purchased Shares or (ii) the consummation
of the transactions contemplated by this Agreement, (b) subject the Purchasers
to any material penalty or onerous condition under or pursuant to any
Requirement of Law if the Purchased Shares were to be purchased hereunder or
(c) restrict the operation of the business of the Company as conducted on the
date hereof in a manner that would have a material adverse effect on the
Condition of the Company taken as a whole.

 

3.9                                 No
Litigation.  No action, suit,
proceeding, claim or dispute has been brought or otherwise arisen at law, in
equity, in arbitration or before any Governmental Authority against the Company
which would, if adversely determined 

(a) have a material adverse effect on the Condition of the Company taken as a
whole or (b) have a material adverse effect on the ability of the Company
to perform its obligations under this Agreement or each of the other
Transaction Documents.

 

3.10                           Purchase
Agreement.  The Purchase Agreement is
in full force and effect and there are no defaults thereunder.

 

ARTICLE IV

 

REPRESENTATIONS AND
WARRANTIES OF THE PURCHASERS

 

 Each of the
Purchasers hereby represents and warrants, severally and not jointly to the
Company as follows:

 

4.1                                 Existence
and Power.   Such
Purchaser (a) is a limited liability company, duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
formation and (b) has the requisite limited liability company power and 

 

 

authority to execute, deliver and perform its obligations under this
Agreement and each of the other Transaction Documents to which it is a party.

 

4.2                                 Authorization;
No Contravention.   The
execution, delivery and performance by such Purchaser of this Agreement and
each of the other Transaction Documents to which it is a party and the
transactions contemplated hereby and thereby, (a) have been duly
authorized by all necessary limited liability company action, (b) do not
contravene the terms of such Purchaser’s organizational documents, or any
amendment thereof, and (c) do not violate, conflict with or result in any
breach, default or contravention of (or with due notice or lapse of time or
both would not result in any breach, default or contravention of), or the
creation of any Lien under, any Contractual Obligation of such Purchaser or any
Requirement of Law applicable to such Purchaser and (d) do not violate any
Orders of any Governmental Authority against, or binding upon, such Purchaser.

 

4.3                                 Governmental
Authorization; Third Party Consents.  
No approval, consent, compliance, exemption, authorization or other
action by, or notice to, or filing with, any Governmental Authority or any
other Person, and no lapse of a waiting period under any Requirement of Law, is
necessary or required in connection with the execution, delivery or performance
(including, without limitation, the purchase of the Purchased Shares) by, or
enforcement against, such Purchaser of this Agreement and each of the other
Transaction Documents to which it is a party or the  transactions contemplated hereby and thereby,
except for any such filings as shall have been made.

 

4.4                                 Binding
Effect.   This Agreement has
been, and as of the Closing Date each of the other Transaction Documents to
which it is a party will have been, duly executed and delivered by such
Purchaser and this Agreement constitutes, and as of the Closing Date each of
the other Transaction Documents will constitute, the legal, valid and binding
obligations of such Purchaser, enforceable against it in accordance with its
terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, fraudulent conveyance or transfer, moratorium or
similar laws affecting the enforcement of creditors’ rights generally or by
equitable principles relating to enforceability (regardless of whether
considered in a proceeding at law or in equity).

 

4.5                                 Purchase
for Own Account.   The Purchased
Shares to be acquired by such Purchaser pursuant to this Agreement are being or
will be acquired for its own account and with no intention of distributing or
reselling such Purchased Shares or any part thereof in any transaction that
would be in violation of the securities laws of the United States of America,
any state of the United States or any foreign jurisdiction, without prejudice,
however, to the rights of such Purchaser at all times to sell or otherwise
dispose of all or any part of such Purchased Shares in a transaction that does
not violate the Securities Act under an effective registration statement under
the Securities Act, or under an exemption from such registration available
under the Securities Act, and subject, nevertheless, to the disposition of such
Purchaser’s property being at all times within its control.  If such Purchaser should in the future decide
to dispose of any of such Purchased Shares, such Purchaser understands and
agrees that it may do so only in compliance with the Stockholders Agreement and
the Securities Act 

 

 

and applicable state and foreign securities laws, as then in
effect.  Such Purchaser agrees to the
imprinting, so long as required by law, of a legend on certificates
representing all of its Purchased Shares and shares of Common Stock issuable
upon conversion of its Purchased Shares to the following effect:

 

THE SECURITIES
REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY STATE OF THE
UNITED STATES OR ANY FOREIGN JURISDICTION. 
THE SECURITIES MAY NOT BE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE AND FOREIGN
SECURITIES LAWS OR PURSUANT TO AN APPLICABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF SUCH ACT AND SUCH LAWS.

 

THE SALE, ASSIGNMENT,
HYPOTHECATION, PLEDGE, ENCUMBRANCE OR OTHER DISPOSITION (EACH A “TRANSFER”) AND
VOTING OF ANY OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE RESTRICTED
BY THE TERMS OF THE STOCKHOLDERS AGREEMENT, DATED APRIL 2, 2003, AMONG THE
COMPANY AND THE STOCKHOLDERS NAMED THEREIN, A COPY OF WHICH MAY BE INSPECTED AT
THE COMPANY’S PRINCIPAL OFFICE.  THE
COMPANY WILL NOT REGISTER THE TRANSFER OF SUCH SECURITIES ON THE BOOKS OF THE
COMPANY UNLESS AND UNTIL THE TRANSFER HAS BEEN MADE IN COMPLIANCE WITH THE
TERMS OF THE STOCKHOLDERS AGREEMENT.

 

4.6                                 Restricted
Securities.   Such Purchaser
understands that (i) the Purchased Shares will not be registered at the time of
their issuance under the Securities Act for the reason that the sale provided
for in this Agreement is exempt pursuant to Section 4(2) of the Securities
Act, (ii) the reliance of the Company on such exemption is predicated in part
on such Purchaser’s representations set forth herein, and (iii) such Purchased
Shares must be held indefinitely unless a subsequent disposition thereof is
registered under the Securities Act or is exempt from registration.

 

4.7                                 Accredited
Investor.   Such Purchaser is an
“Accredited Investor” within the meaning of Rule 501 of Regulation D under the
Securities Act, as presently in effect. 
Such Purchaser acknowledges that such Purchaser has had a full
opportunity to request from the Company and to review and has received all
information which it deems relevant in making a decision to purchase the
Purchased Shares being purchased by it hereunder and is relying on its own due
diligence and the representations and warranties and covenants of the Company
made herein in making this investment.

 

ARTICLE V

 

DELIVERIES TO THE PURCHASERS

 

At the Closing, the
Company shall deliver to the Purchasers the following:

 

 

5.1                                 Secretary’s
Certificate.  The Company shall
deliver to the Purchasers a certificate from the Company, in form and substance
reasonably satisfactory to the Purchasers, dated the Closing Date and signed by
the Secretary or an Assistant Secretary of the Company, certifying (a) that the
Company is in good standing with the Secretary of State of the State of
Delaware, (b) that the attached copies of the Certificate of
Incorporation, the By-laws, and the resolutions of the Board of Directors and
resolutions of the stockholders of the Company approving this Agreement and
each of the other Transaction Documents, are all true, complete and correct and
remain unamended and in full force and effect, (c) that the attached copies of
the resolutions of the stockholders of the Company electing the Cerberus
Directors (as defined in the Stockholders Agreement) are true, complete and
correct and remain unamended and in full force and effect, and (d) as to
the incumbency and specimen signature of each officer of the Company executing
this Agreement, each other Transaction Document and any other document
delivered in connection herewith on behalf of the Company.

 

5.2                                 Filing
of Certificate of Incorporation.  The
Company shall deliver to the Purchasers evidence of the filing of the
Certificate of Incorporation with the Secretary of State of the State of
Delaware in accordance with the General Corporation Law of the State of
Delaware.

 

5.3                                 Purchased
Shares.  The Company shall deliver to
the Purchasers, against receipt of the Exchange Securities and cancellation of
the Exchange Indebtedness, certificates in definitive form representing an
aggregate number of 2,250,000 shares, registered in the name of each Purchaser
in such number as set forth on Schedule 2.1 hereto.

 

5.4                                 Stockholders
Agreement.  The Company shall deliver
to the Purchasers the Stockholders Agreement duly executed by the Company.

 

5.5                                 Registration
Rights Agreement.  The Company shall
deliver to the Purchasers the Registration Rights Agreement duly executed by
the Company.

 

ARTICLE VI

 

DELIVERIES TO THE COMPANY

 

At the Closing, the
Purchasers shall deliver to the Company or perform the following:

 

6.1                                 Exchange
of the Exchange Securities and Exchange Indebtedness.  Madeleine shall reduced the amount of
indebtedness under the Subordinated Promissory Note by $10,000,000, and SSA
Investor, Senior Warrantholder, Ableco, Cerberus Partners and Cerberus
Institutional Partners shall tender the Exchange Securities for exchange in
accordance with the terms hereof.

 

6.2                                 Stockholders
Agreement.  Each Purchaser shall
deliver to the Company the Stockholders Agreement duly executed by such
Purchaser.

 

 

6.3                                 Registration
Rights Agreement.  Each Purchaser
shall deliver to the Company the Registration Rights Agreement duly executed by
such Purchaser.

 

ARTICLE VII

 

AFFIRMATIVE COVENANTS

 

The Company hereby
covenants and agrees with the Purchasers as follows:

 

7.1                                 Financial
Statements and Other Information.  So
long as any Purchaser shall hold 15% of the issued and outstanding Purchased
Shares, the Company shall deliver to each Purchaser, in form and substance
satisfactory to such Purchaser:

 

(a)                                  as
soon as available, but not later than ninety (90) days after the end of each
fiscal year of the Company, a copy of the audited consolidated  balance sheet of the Company and its
Subsidiaries as of the end of such fiscal year and the related statements of
operations and cash flows for such fiscal year, setting forth in each case in
comparative form the figures for the previous year, all in reasonable detail
and accompanied by a management summary and analysis of the operations of the
Company for such fiscal year and by the opinion of a nationally recognized
independent certified public accounting firm which report shall state without
qualification that such financial statements present fairly the financial
condition as of such date and results of operations and cash flows for the
periods indicated in conformity with GAAP applied on a consistent basis;

 

(b)                                 commencing
with the fiscal period ending on December 31, 2002, as soon as available,
but in any event not later than forty-five (45) days after the end of each of
the first three fiscal quarters of each fiscal year, the unaudited consolidated
balance sheet of the Company and its Subsidiaries, and the related statements
of operations and cash flows for such quarter and for the period commencing on
the first day of the fiscal year and ending on the last day of such quarter,
all certified by an appropriate officer of the Company as presenting fairly the
consolidated financial condition as of such date and results of operations and
cash flows for the periods indicated in conformity with GAAP applied on a
consistent basis, subject to normal year-end adjustments and the absence of
footnotes required by GAAP;

 

(c)                                  commencing
with the month ending after the Closing Date, as soon as available, but in any
event not later than fifteen (15) days after the end of each month of each
fiscal year (i) the unaudited consolidated balance sheet of the Company and its
Subsidiaries, and the related statements of operations and cash flows for such
month and for the period commencing on the first day of the fiscal year and
ending on the last day of such month, all certified by an appropriate officer
of the Company as presenting fairly the consolidated financial condition as of
such date and results of operations and cash flows for the periods indicated in
conformity with GAAP applied on a consistent basis, subject to normal year-end
adjustments and the absence of footnotes required by GAAP and (ii) the
projected consolidated balance sheet of the Company and 

 

 

its Subsidiaries, and the related statements of operations and cash
flows for the remaining months of the fiscal year in a comparative format; and

 

(d)                                 if
requested by any of the Purchasers, as promptly as practicable, but not later
than fifteen (15) days after the end of each fiscal year of the Company, a
certificate signed by the Chief Executive Officer of the Company in customary
form certifying that the Company is not a “foreign person” within the meaning
of Section 1445 of the Code; and

 

(e)                                  such
other information regarding the operations, business, affairs and financial
condition of the Company as Cerberus reasonably may request.

 

7.2                                 Reservation
of Common Stock.  Until the Purchased
Shares are converted into Common Stock or otherwise cancelled, as provided in
the Certificate of Incorporation, the Company shall reserve and keep available
out of its authorized shares of Common Stock, solely for the purpose of issue
or delivery upon conversion of the Purchased Shares, the maximum number of
shares of Common Stock that may be issuable or deliverable upon such conversion
or the Company shall take such action as is called for under the Certificate of
Incorporation to increase the number of authorized shares of Common Stock to
provide for conversion of each of the outstanding Purchased Shares into Common
Stock.  Such shares of Common Stock when
issued or delivered in accordance with the Certificate of Incorporation, shall
be duly authorized, validly issued, fully paid and non-assessable.  The Company shall issue such shares of Common
Stock in accordance with the terms of the Certificate of Incorporation and
otherwise comply with the terms hereof and thereof.

 

7.3                                 Insurance.  The Company shall maintain insurance with
insurance companies or associations with a rating of “A” or better as
established by Best’s Rating Guide (or an equivalent rating with such other
publication of a similar nature as shall be in current use) in such amounts and
covering such risks as are usually and customarily carried with respect to
similar businesses according to its locations.

 

7.4                                 Books
and Records.  The Company shall keep
proper books of record and account, in which full and materially correct
entries shall be made of all financial transactions and the assets and business
of the Company in accordance with GAAP consistently applied.

 

7.5                                 Back-ups
of Computer Software.  The Company
shall make back-ups of all material computer software programs and databases
and shall maintain such software programs and databases at a secure off-site
location.

 

7.6                                 Inspection.  The Company shall permit representatives of
the Purchasers to visit and inspect any of its properties, to examine its
corporate, financial and operating records and make copies thereof or abstracts
therefrom, and to discuss its affairs, finances and accounts with their
respective directors, officers and independent public accountants, all at such
reasonable times during normal business hours and as often as may be reasonably
requested upon reasonable advance notice to the Company.

 

 

7.7                                 Intellectual
Property.  The Company
shall make a reasonably diligent effort to cause to be properly registered with
the United States Patent and Trademark Office or Copyright Office, as
applicable, and their applicable foreign equivalents, all documentation
necessary to evidence clean chain of title transfer to the Company or a
Subsidiary from all prior registered owners of all registered Trademarks and
Copyrights with respect to which the failure to do so would be reasonably
likely to have a material adverse effect on the Company and its Subsidiaries.

 

ARTICLE VIII

 

MISCELLANEOUS

 

8.1                                 Survival
of Representations and Warranties.  
The representation and warranty set forth in Section 3.3 shall
survive the execution and delivery of this Agreement until the date that is
sixty (60) days after receipt by the Purchasers of audited financial statements
of the Company for the fiscal year ending July 31, 2003 (or, if such
fiscal year changes and no such audited consolidated financial statements are
available, then the successor fiscal year) and the representations and
warranties set forth in Sections 3.1, 3.2, 3.6 and 3.7 shall survive until the
third anniversary of the Closing Date. 
The representations and warranties set forth in Sections 3.4, 3.5, 3.8,
3.9 and 3.10 shall not survive execution and delivery of this Agreement.

 

8.2                                 Notices.  All notices, demands and other communications
provided for or permitted hereunder shall be made in writing and shall be by
registered or certified first-class mail, return receipt requested, telecopier,
courier service or personal delivery:

 

if to the Company:

 

SSA Global Technologies, Inc.

500 West Madison

Suite 1600

Chicago, IL  60661

Telecopy:  (312) 474-7500

Attention: 
President

 

with copies to:

 

SSA Global Technologies, Inc.

500 West Madison

Suite 1600

Chicago, IL  60661

Telecopy:  (312) 474-7500

Attention: 
General Counsel

 

 

if to the Purchasers:

 

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.

 

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 8.2 designate another
address or Person for receipt of notices hereunder.

 

8.3                                 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.  Subject to applicable securities laws and the
terms and conditions thereof, the Purchasers may assign any of their rights
under this Agreement or the other Transaction Documents to any of their
respective Affiliates.  The Company may
not assign any of its rights under this Agreement without the written consent
of the Purchasers.  No Person other than
the parties hereto and their successors and permitted assigns is intended to be
a beneficiary of this Agreement.

 

8.4                                 Amendment
and Waiver.

 

(a)                                  No
failure or delay on the part of the Company or the Purchasers in exercising any
right, power or remedy hereunder shall operate as a waiver thereof, nor shall
any single or partial exercise of any such right, power or remedy preclude any
other or further exercise thereof or the exercise of any other right, power or
remedy.  The remedies provided for herein
are cumulative and are not exclusive of any remedies that may be available to
the Company or the Purchasers at law, in equity or otherwise.

 

(b)                                 Any
amendment, supplement or modification of or to any provision of this Agreement,
any waiver of any provision of this Agreement, and any consent to any departure
by the Company or the Purchasers from the terms of any provision of this Agreement,
shall be effective (i) only if it is made or given in writing 

 

 

and signed by the Company, the GAP Purchasers and the Purchasers
purchasing a majority of the Purchased Shares, and (ii) only in the
specific instance and for the specific purpose for which made or given.  Except where notice is specifically required
by this Agreement, no notice to or demand on the Company in any case shall
entitle the Company to any other or further notice or demand in similar or
other circumstances.

 

8.5                                 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.

 

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

 

8.7                               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, the other
Transaction Documents, the Purchased Shares 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.

 

8.8                                 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.

 

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

 

8.10                           Entire
Agreement.  This Agreement, together
with the exhibits and schedules hereto, and the other Transaction Documents are
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 in respect of the subject matter contained herein and
therein.  There are no restrictions,
promises, representations, warranties or undertakings, other than those set
forth or referred to herein or therein. 
This Agreement, together with the exhibits and schedules hereto, and the
other 

 

 

Transaction Documents supersede all prior agreements and understandings
between the parties with respect to such subject matter.

 

8.11                           Fees.  Each of the Company and the Purchasers shall
bear its own costs and expenses incurred in connection with the negotiation,
execution and consummation of this Agreement and each of the other Transaction
Documents.

 

8.12                           Further
Assurances.  Each of the parties
shall execute such documents and perform such further acts (including, without
limitation, obtaining any consents, exemptions, authorizations or other actions
by, or giving any notices to, or making any filings with, any Governmental
Authority or any other Person) as may be reasonably required or desirable to
carry out or to perform the provisions of this Agreement.

 

[Remainder of page intentionally left blank.]

 

 

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

 

	
   

  	
  SSA GLOBAL
  TECHNOLOGIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Kirk Isaacson

  
	
   

  	
   

  	
   Name:

  	
  Kirk Isaacson

  
	
   

  	
   

  	
   Title:

  	
  Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MADELEINE L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark A. Neporent

  
	
   

  	
   

  	
   Name:

  	
  Mark A. Neporent

  
	
   

  	
   

  	
   Title:

  	
  Vice President and
  Chief Operating 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

  

 

 

[Signature Page to Securities
Exchange Agreement]Filed by Automated Filing Services Inc. (604) 609-0244 - Bream Ventures Inc. - Exhibit 10.4

September, 2002

 Re: Letter Agreement, Panorama Property, Mineral County, Nevada.
  

  Unpatented mining claims: Hound Dog 2, Hound Dog 9, Ule 19, Panorama 5-7, Vol
  32, Little Ule 8. BLM serial numbers: NMC #763966, 972, 991, 994-996, 950, 960.

 The following amends the general terms and conditions for
  the agreement between Herb Duerr (HD) and Bream Ventures Inc. (Bream) governing
  HD’s Panorama Property, Mineral County, Nevada, U. S. A. 

	Form of Agreement	Mining Lease	 
	 	 	 
	Term	20 years with automatic extensions so long asconditions
      of the lease are met.
	 	 	 
	Production Royalties	3.0% Net Smelter Return	 
	 	 	 
	Advance Royalties	Upon Execution	US$ 5,000.00
	 	March 9, 2002	US$ 1,500.00
	 	October 9, 2002	US$ 2,000.00
	 	January 9, 2003	US$ 2,000.00
	 	March 9, 2003	US$ 1,500.00
	 	June 9, 2003	US$ 1,500.00
	 	September 30, 2003	US$ 1,000.00
	 	December 31, 2003	US$ 14,000.00
	 	March 9, 2004	US$ 20,000.00
	 	March 9, 2005 & thereafter	US$ 50,000.00
	 	 	 
	 	Adjusted to annual changes
        in the consumer price index (CPI) with 2001 as the base year. CPI payments
        apply to payments beginning with the 4th anniversary.

	 	 	 
	Performance Requirements	Federal and state mining
        claim maintenance fees for any year in which this agreement is maintained
        in good standing after June 1.

	 	 	 
	Reclamation	Bream shall perform reclamation
        work on the Property as required by Federal, State, and Locallaw for disturbances
        resulting from Bream’s activities on the Property.

	 	 	 
	Assignment	Freely by either party so
        long as Assignee accepts terms and conditions of the Lease in writing.

 Letter Agreement Panorama Property

  Page 2 of 2

  April 9, 2001  

	Interest Area	One mile from the outside perimeter of thePanorama claim
      boundaries for new claimslocated either by HD or by Bream.

 If the above terms and conditions are consistent with our
  earlier discussions, please acknowledge by signing in the space provided below
  and return one copy. This will serve to bind HD and Bream while a formal and
  comprehensive agreement, incorporating these general terms, is prepared. 

Agreed and accepted to this 30th day of September, 2003.

By: /s/ Herb Duerr (Lessor)

By: /s/ Anthony England (Lessee)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}]]