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Exhibit 10.1    
    

 
  REGISTRATION RIGHTS AGREEMENT    
  

REGISTRATION RIGHTS AGREEMENT (the "Agreement"), dated as of April 2, 2001, by and between
Intraware, Inc., a Delaware corporation (the "Company"), [                  ], and each of the investors
identified on  Schedule 1 hereto (as such schedule may be updated from time to time) and signatory hereto (each, an
"Investor", and collectively, the "Investors") or their permitted assigns (each, a
"Holder", and collectively, the "Holders"). 

WHEREAS, this Agreement is being entered into in connection with the financing extended by the Investors to the Company (the
"Financing") in which, pursuant to the terms of subscription agreements entered into between the Company and each Investor (collectively, the
"Subscription Agreement"), each Investor will receive (a) shares of the Company's Series B Convertible Preferred Shares, par value $0.0001
per share (the "Preferred Shares"), that is convertible into shares of common stock, par value $0.0001 per share (the "Common
Stock"), of the Company (the "Conversion Shares"), and (b) warrants ("Preferred
Warrants") to purchase shares of Common Stock (the "Warrant Shares"); and 

WHEREAS, the terms of the Preferred Shares and Preferred Warrants contemplate that the Conversion Shares and the Warrant Shares, as the case may be, are
entitled to registration rights. 

NOW, THEREFORE, in consideration of the foregoing and the mutual promises, representations, warranties and covenants and agreements contained herein,
the Company and each of the Investors hereto, intending to be legally bound hereby agree as follows: 

I.  DEFINITIONS. 

The
following additional definitions shall apply for purposes of this Agreement: 

1.1  The
term "Holder" means an Investor and any transferee or assignee thereof to whom an Investor assigns its rights under this
Agreement and who agrees to become bound by the provisions of this Agreement in accordance with Section 6.2. 

1.2  The
term "Person" means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an
unincorporated organization, a government or any department or agency thereof. 

1.3  The
term "Prospectus" means the Prospectus included in any Registration Statement (including without limitation, a Prospectus that
discloses information previously omitted from a Prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated under the 1933 Act), as amended or
supplemented by any amendment or Prospectus supplement, including post-effective amendments, and all materials incorporated by reference or explicitly deemed to be incorporated by
reference in such Prospectus. 

1.4  The
terms "Register," "Registered," and
"Registration" refer to a registration effected by preparing and filing one or more Registration Statements, (as defined below) or similar document in
compliance with the Securities Act of 1933, as amended (the "1933 Act"), and Rule 415 thereunder or any successor rule providing for the offering
for resale of securities on a continuous or delayed basis ("Rule 415"), and the declaration or ordering of effectiveness of such Registration
Statement or document by the United States Securities and Exchange Commission (the "SEC"). 

1.5  The
term "Registrable Securities" means (a) the Warrant Shares and any other securities of the Company issuable upon the
exercise of the Warrants, (b) the Conversion Shares, and any other securities of the Company, issued or issuable upon the conversion of the Preferred Shares, and (c) any shares of
capital stock or other securities issued or issuable with respect to the Warrant Shares or the Preferred Shares, as a result of any stock split, stock dividend, recapitalization, exchange or similar
event or otherwise, without regard to any limitations on the exercises of the Preferred Warrants or conversion of the Preferred Shares; provided, however, that any securities deemed Registrable
Securities in accordance herewith shall cease to be Registrable Securities (i) upon the sale of such 

 

securities pursuant to a Registration Statement, (ii) upon the sale of such securities pursuant to Rule 144 promulgated under the 1933 Act, or (iii) on the date on which such
securities become available for sale under Rule 144(k). 

1.6  The
term "Registration Statement" means a registration statement on Form S-1 or Form S-3 or
any similar or successor form then appropriate for or applicable to the offer and sale of the Registrable Securities and filed under the 1933 Act. 

II.  REGISTRATION.

2.1  Right to Include Registrable Stock. If the Company proposes to register any of its securities under the 1933 Act in connection with
the public offering of such securities solely for cash (other than a registration on Form S-4 or Form S-8, or any successor or similar forms) (a
"Piggyback Registration"), whether for the account of the Company or otherwise, it will promptly, but not later than thirty (30) days before the
anticipated date of filing such Registration Statement, give written notice to each Holder. Upon the written request of any of the Holders made within fifteen (15) days after the receipt of any
such notice (which request shall specify the Registrable Securities intended to be disposed of by such Holders and the intended method of distribution thereof), the Company will use its reasonable
best efforts to effect the registration under the 1933 Act of all Registrable Securities which the Company has been requested to register by any of the Holders in accordance with the intended methods
of distribution specified in such request; provided, however, that (a) if, at any time after giving written notice of its intention to register any securities and prior to the effective date of
the Registration Statement filed in connection with such registration, the Company determines for any reason not to proceed with such registration, the Company may, at its election, give written
notice of such determination to the Holders and, thereupon, will be relieved of its obligation to register any Registrable Securities in connection with such registration, and (b) in case of a
determination by the Company to delay registration of its securities, the Company will be permitted to delay the registration of Registrable Securities for the same period as the delay in registering
such other securities; provided, however, that the provisions of this Article II will not be deemed to limit or otherwise restrict the rights of
the Holders under Article III. 

2.2  Mandatory Registration. Notwithstanding the foregoing, the Company shall prepare and file with the SEC on or before the earlier of
(a) the three-month anniversary of the First Closing (as defined in the Agency Agreement (as defined in the Subscription Agreement) or (b) the date on which a Registration Statement
covering the resale of the shares of Common Stock (the "Series A Conversion Shares") into which the Series A Preferred Stock, par value
$0.0001 per share, of the Company are convertible is filed with the SEC (the "Filing Deadline"), a Registration Statement or Registration Statements, as
necessary, on Form S-3 covering the resale of all of the Holders' Registrable Securities. In the event that Form S-3 is unavailable for such a registration, the
Company shall use such other form as is available for such a registration, subject to the provisions of Section 2.5. The Company shall use its
reasonable best efforts to cause such Registration Statement to be declared effective by the SEC on or before the date which is earlier of (x) the three-month anniversary of the Filing Deadline
or (y) the date on which a Registration Statement covering the resale of the Series A Conversion Shares is declared effective by the SEC (the "Effectiveness
Deadline"). 

2.3  Priority. If the managing underwriter for a registration (other than with respect to a Registration Statement filed pursuant to  Section 2.2) involving an
underwritten offering advises the Company in writing that, in its opinion, the number of securities of the Company
(including without limitation, Registrable Securities) requested to be included in such registration by the holders thereof exceeds the number of securities of the Company (the
"Sale Number") which can be sold in an orderly manner in such offering within a price range acceptable to the Company, the Company will include
(a) first, all securities of the Company that the Company proposes to register for its own account, and (b) second, to the extent that the number of securities of the Company to be
included by the Company is less than 

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the Sale Number, a number of the Registrable Securities equal to the number derived by multiplying (i) the difference between the Sale Number and the securities proposed to be sold by the
Company, and (ii) a fraction the numerator of which is the number of Registrable Securities originally requested to be registered by the Holders, and the denominator of which shall be the
aggregate number of all securities requested to be registered by all holders of the Company's securities (other than securities being registered by the Company itself). The Company hereby agrees that
it will not grant registration rights to any other holder that are more favorable to such holder than the registration rights granted hereunder. 

2.4  Legal Counsel. Subject to Section 6.1 hereof, the Investors holding a
majority of the Registrable Securities shall have the right to select one legal counsel to review and oversee any offering pursuant to this  Article II ("Legal
Counsel"), which shall be Paul, Hastings, Janofsky & Walker LLP or such
other counsel as thereafter designated by the holders of a majority of the Registrable Securities. The Company shall reasonably cooperate with Legal Counsel in performing the Company's obligations
under this Agreement. 

2.5  Ineligibility of Form S-3. In the event that Form S-3 is not available for the registration of
the resale of Registrable Securities hereunder, the Company shall (a) register the resale of the Registrable Securities on another appropriate form, and (b) undertake to register the
resale of the Registrable Securities on Form S-3 as soon as such form is available; provided, however, that the Company shall maintain the effectiveness of the Registration
Statement then in effect until such time as a Registration Statement on Form S-3 covering the Registrable Securities has been declared effective by the SEC. 

2.6  Effect of Failure to File and Obtain and Maintain Effectiveness of Registration Statement. If (a) a Registration Statement
covering all the Registrable Securities and required to be filed by the Company pursuant to this Agreement is not (i) filed with the SEC on or before the Filing Deadline, or
(ii) declared effective by the SEC on or before the applicable Effectiveness Deadline; (b) on any day after the Registration Statement has been declared effective by the SEC, sales of
all the Registrable Securities required to be included on such Registration Statement cannot be made pursuant to the Registration Statement (including without limitation, because of a failure to keep
the Registration Statement effective, to disclose such information as is necessary for sales to be made pursuant to the
Registration Statement, or to register sufficient shares of Common Stock), or (c) the Company fails at any time to fully comply with the rules and regulations of the Nasdaq National Market,
including the standards for continued listing of the Company's Common Stock on the Nasdaq National Market, then the Company shall be in breach of this Agreement (such a breach being a
"Registration Statement Default"). As partial relief for any Registration Statement Default and for the damages to any Holder by reason of any such
delay in or reduction of its ability to sell the Registrable Securities, the remedy shall be as provided for by the Preferred Warrants and the Certificate of Designation (which remedy shall not be
exclusive of any other remedies available at law or in equity). Notwithstanding the foregoing, the Company shall have 30 days to cure a Registration Statement Default after the date of its
occurrence and to deliver a written statement to the holders of Registrable Securities certifying that such Registration Statement Default has been so cured; and if such cure is timely effected and
such statement is timely delivered, the Company shall not be subject to the remedies for a Registration Statement Default. 

2.7  Sufficient Number of Shares Registered. In the event the number of shares available under a Registration Statement filed pursuant to  Section 2.2 is insufficient to
cover all of the Registrable Securities which such Registration Statement is required to cover, the Company shall
amend the Registration Statement, or file a new Registration Statement (on the short form available therefor, if applicable), or both, so as to cover at least 100% of the Registrable Securities
(based on the market price of the Common Stock on the trading day immediately preceding the date of filing of such amendment or new Registration Statement), in each case, as soon as practicable, but
in any event not later than fifteen (15) business days after the necessity therefor arises. The Company shall cause such 

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amendment and/or new Registration Statement to become effective as soon as practicable following the filing thereof. For purposes of the foregoing provision, the number of shares available under a
Registration Statement shall be deemed "insufficient to cover all of the Registrable Securities" if the number of Registrable Securities issued or issuable upon conversion of the Preferred Shares and
exercise of the Preferred Warrants covered by such Registration Statement is greater than the number of shares of Common Stock available for resale under the Registration Statement to cover shares
issued or issuable upon conversion of the Preferred Shares and exercise of the Preferred Warrants. For purposes of the calculation set forth in the foregoing sentence, any restrictions on the
conversion of the Preferred Shares and the exercise of the Preferred Warrants shall be disregarded and such calculation shall assume that the Preferred Shares is then convertible into shares of Common
Stock at the then prevailing Conversion Price (as defined in the Company's Certificate of Designation for the Preferred Shares) and the Preferred Warrants are then exercisable for shares of Common
Stock at the then prevailing applicable Exercise Price (as defined in the applicable Preferred Warrant). 

III.  OBLIGATIONS OF THE COMPANY. 

Whenever
required under this Agreement to effect the registration of any Registrable Securities, the Company will, as expeditiously as possible, fulfill the following obligations: 

3.1  Registration Statement. The Company shall promptly prepare and file with the SEC a Registration Statement with respect to the
Registrable Securities (but in no event later than the Filing Deadline) and use its best efforts to cause such Registration Statement to become effective (but in no event later than the applicable
Effectiveness Deadline). The Company will keep such Registration Statement effective for up to three (3) years from its effective date, but not in any event after such securities cease being
Registrable Securities (the "Registration Period"). The Registration Statement (including any amendments or supplements thereto and Prospectuses
contained therein) shall not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein, or necessary to make the statements therein, in light of
the circumstances in which they were made, not misleading. The Company shall submit to the SEC, within three (3) business days, unless Legal Counsel withholds approval as provided in 3.3, after
the Company learns that no review of a particular Registration Statement will be made by the staff of the SEC or that the staff has no further comments on the Registration Statement, as the case may
be, a request for acceleration of effectiveness of such Registration Statement to a time and date not later than 2 business days after the submission of such request. 

3.2  Registration Statement Amendments and Supplements. The Company shall prepare and file with the SEC such amendments and supplements
to such Registration Statement and the Prospectus used in connection with such Registration Statement as may be necessary to comply with the provisions of the 1933 Act with respect to the disposition
of all Registrable Securities covered by such Registration Statement until such time as all of such Registrable Securities shall have been disposed of in accordance with the intended methods of
disposition by the seller or sellers thereof as set forth in such Registration Statement. In the case of amendments and supplements to a Registration Statement which are required to be filed pursuant
to this Agreement (including pursuant to this Section 3.2) by reason of the Company filing a report on Form 10-K,
Form 10-Q or Form 8-K or any analogous report under the Securities Exchange Act of 1934, as amended (the "1934
Act"), the Company shall have incorporated such report by reference into the Registration Statement, if applicable, or shall file such amendments or supplements with the SEC on
the same day on which the 1934 Act report is filed which created the requirement for the Company to amend or supplement the Registration Statement. 

3.3  Legal Counsel. The Company shall (a) permit Legal Counsel to review and comment upon (i) those sections of a
Registration Statement relating to the Investors at least five (5) business days prior to its filing with the SEC, and (ii) all other sections of a Registration Statement and all
amendments and supplements to all Registration Statements, which are applicable to the Investors 

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(except for Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and any similar or successor report and
registration statements on Form S-8) at least four (4) business
days prior to their filing with the SEC, and (b) not file any document in a form to which Legal Counsel reasonably objects. The Company shall not submit a request for acceleration of the
effectiveness of a Registration Statement or any amendment or supplement thereto without the prior approval of Legal Counsel, which consent shall not be unreasonably withheld. The Company shall
furnish to Legal Counsel, without charge, (a) any correspondence from the SEC or the staff of the SEC to the Company or its representatives relating to any Registration Statement,
(b) promptly after the same is prepared and filed with the SEC, one copy of any Registration Statement and any amendment(s) thereto, including financial statements and schedules and all
exhibits and (c) upon the effectiveness of any Registration Statement, one copy of the Prospectus included in such Registration Statement and all amendments and supplements thereto. The Company
shall reasonably cooperate with Legal Counsel in performing the Company's obligations pursuant to this Article III. 

3.4  Notification. As promptly as practicable give notice to the Holders and Legal Counsel (a) when the Registration Statement or
any post-effective amendment has been declared effective, (b) of the issuance by the SEC or any other federal or state governmental authority of any stop order or other suspension
of the effectiveness of the Registration Statement, or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any
proceedings for that purpose, (c) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable
Securities for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose, (d) of the occurrence of (but not the nature of or details concerning) a Material
Event (defined in Section 3.7), and (e) of the determination by the Company that a post-effective amendment to the
Registration Statement will be filed with the SEC, which notice may, at the discretion of the Company (or as required pursuant to Section 3.7),
state that it constitutes a Deferral Notice, in which event the provisions of Section 3.7 shall apply. 

3.5  Prospectuses. The Company shall deliver to each Holder in connection with any sale of Registrable Securities pursuant to the
Registration Statement, without charge, as many copies of the Prospectus or Prospectuses relating to such Registrable Securities (including each preliminary Prospectus) and any amendment or supplement
thereto as such Holder may reasonably request, and the Company hereby consents (except during such periods that a Deferral Notice is outstanding and has not been revoked) to the use of such Prospectus
or each amendment or supplement thereto by each Holder in connection with any offering and sale of the Registrable Securities covered by such Prospectus or any amendment or supplement thereto in the
manner set forth therein. 

3.6  Blue Sky Laws. The Company shall, prior to any public offering of the Registrable Securities pursuant to the Registration Statement,
register or qualify or cooperate with the Holders in connection with the registration or qualification (or exemption from such registration or qualification) of such Registrable Securities for offer
and sale under the securities or "Blue Sky" laws of such jurisdictions within the United States as any Holder reasonably requests in writing, and keep each such registration or qualification (or
exemption therefrom) effective during the Registration Period in connection with such Holder's offer and sale of Registrable Securities pursuant to such registration or qualification (or exemption
therefrom) and do any and all other acts or things necessary or advisable to enable the
disposition in such jurisdictions of such Registrable Securities in the manner set forth in the Registration Statement and the related Prospectus; provided, however, that the Company will not be
required to (a) qualify as a foreign corporation or as a dealer in securities in any jurisdiction where it would not otherwise be required to qualify but for this Agreement, or (b) take
any action that would subject it to general service of process in suits or to taxation in any such jurisdiction where it is not then so subject. The Company shall promptly notify Legal Counsel and
each Holder who holds Registrable Securities of the receipt by the Company of any notification with respect to the suspension 

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of the registration or qualification of any of the Registrable Securities for sale under the securities or "Blue Sky" laws of any jurisdiction in the United States or its receipt of actual notice of
the initiation or threat of any proceeding for such purpose. 

3.7  Stop Orders; Material Events. The Company shall use commercially reasonable efforts to prevent the issuance of any stop order or
other suspension of effectiveness of a Registration Statement, or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction. Upon (a) any issuance by
the SEC of a stop order or other suspension of the effectiveness of the Registration Statement, or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction
despite the Company's commercially reasonable efforts to prevent such stop order or suspension, or the initiation of proceedings with respect to the Registration Statement under Section 8(d) or
8(e) of the 1933 Act; (b) the occurrence of any event or the existence of any fact (a "Material Event") as a result of which the Registration
Statement shall contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading, or any
Prospectus shall contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; or (c) the occurrence or existence of any pending corporate development, public filing with the SEC or other similar event with respect
to the Company that, in the reasonable discretion of the Company, makes it appropriate to suspend the availability of the Registration Statement and the related Prospectus, the Company shall
(i) in the case of clause (b) above, subject to the next sentence, as promptly as practicable prepare and file, if necessary pursuant to applicable law, a post-effective
amendment to such Registration Statement or a supplement to the related Prospectus or any document incorporated therein by reference or file any other required document that would be incorporated by
reference into such Registration Statement and Prospectus so that such Registration Statement does not contain any untrue statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein not misleading, and such Prospectus does not contain any untrue statement of a material fact or omit to state any material fact required to
be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, and, in the case of a post-effective amendment
to a Registration Statement, subject to the next sentence, use its reasonable efforts to cause it to be declared effective as promptly as is practicable; and (ii) give notice to the Holders and
Legal Counsel that the availability of the Registration Statement is suspended (a "Deferral Notice") and, upon receipt of any Deferral Notice, each
Holder agrees not to sell any Registrable Securities pursuant to the Registration Statement until such Holder's receipt of copies of the supplemented or amended Prospectus provided for in
clause (i) above, or until it is advised in writing by the Company that the Prospectus may be used,
and has received copies of any additional or supplemental filings that are incorporated or deemed incorporated by reference in such Prospectus. The Company will use commercially reasonable efforts to
ensure that the use of the Prospectus may be resumed (x) in the case of clause (a) above, as promptly as is practicable, (y) in the case of clause (b) above, as soon as, in
the sole judgment of the Company, public disclosure of such Material Event would not be prejudicial to or contrary to the interests of the Company or, if necessary to avoid unreasonable burden or
expense, as soon as practicable thereafter, and (z) in the case of clause (c) above, as soon as, in the discretion of the Company, such suspension is no longer appropriate (such period,
during which the availability of the Registration Statement and any Prospectus is suspended being a "Deferral Period"). Notwithstanding the foregoing,
no Deferral Period instituted pursuant to clause (b) or clause (c) above shall last for a period of time in excess of thirty (30) days from the date of the Material Event or other
occurrence or state of facts on account of which such Deferral Period is instituted, and the Company shall institute no more than one (1) Deferral Period in the aggregate pursuant to
clause (b) or clause (c) above in any consecutive twelve (12) month period. The Company shall use commercially reasonable efforts to obtain the withdrawal of any order suspending
the effectiveness of a Registration Statement or the lifting of any suspension of the 

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qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction in which they have been qualified for sale, in either case as promptly as practicable. 

3.8  Accountants Letters and Legal Opinions. At the reasonable request of any Holder and at the expense of the Company the Company shall
furnish to such Holder, on the date of the effectiveness of the Registration Statement and thereafter from time to time on such dates as any of the Holders may reasonably request (if the offering
contemplated by such Registration Statement is an underwritten offering) (a) a letter, dated such date, from the Company's independent certified public accountants in form and substance as is
customarily given by independent certified public accountants to underwriters in an underwritten public offering, and (b) an opinion, dated as of such date, of counsel representing the Company
for purposes of such Registration Statement, in form, scope and substance as is customarily given to underwriters in an underwritten public offering, addressed to the Holders. 

3.9  Listing or Quotation. The Company shall either (a) cause all the Registrable Securities covered by a Registration Statement
to be listed on each securities exchange on which securities of the same class or series issued by the Company are then listed, if any, if the listing of such Registrable Securities is then permitted
under the rules of such exchange, or (b) secure designation and quotation of all the Registrable Securities covered by the Registration Statement on the Nasdaq National Market or The New York
Stock Exchange, Inc., or, if the Company is unsuccessful in satisfying the preceding clause (a) or (b), (c) the Company shall secure the inclusion for quotation on The American
Stock Exchange, Inc., or The Nasdaq SmallCap Market, for such Registrable Securities and, without limiting the generality of the foregoing, to arrange for at least two (2) market makers
to register with the National Association of Securities Dealers, Inc. ("NASD") as such with respect to such Registrable Securities. The Company
shall pay all fees and expenses in connection with satisfying its obligation under this Section 3.9. 

3.10  Access to Information. The Company shall make documents, files, books, records, officers, directors and employees of the Company
reasonably available to any Holder, Legal Counsel and one firm of accountants or other agents retained by the Holders and provided the underwriters, if any, shall have agreed to be bound by the
provisions of this Section 3.10, to such underwriters (collectively the "Inspectors"), and make
such other accommodations as are reasonably necessary for the Inspectors, if any, to perform a due diligence review of the Company; provided, however, that all such information
("Confidential Information") will be kept confidential and not utilized by the Inspectors except as contemplated herein and except as required by law or
court order. The term "Confidential Information" does not include information that (a) is already in possession of such other party (other than
that which is subject to another confidentiality agreement), (b) becomes generally available to the public, or (c) becomes available on a non-confidential basis from a source
other than the Company. Each Holder agrees that it shall, upon learning that disclosure of such Confidential Information is sought in or by a court or governmental body of competent jurisdiction or
through other means, give prompt notice to the Company and allow the Company, at its expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective order for, the
information deemed confidential. 

3.11  Non-Disclosure. The Company shall hold in confidence and not make any disclosure of information concerning any Holder
provided to the Company unless (a) disclosure of such information is necessary to comply with federal or state securities laws, (b) the disclosure of such information is necessary to
avoid or correct a misstatement or omission in any Registration Statement, (c) the release of such information is ordered pursuant to a subpoena or other final, non-appealable order
from a court or governmental body of competent jurisdiction, (d) such information has been made generally available to the public other than by disclosure in violation of this Agreement or any
other agreement, or (e) such Holder consents to the form and content of any such disclosure. The Company agrees that it shall, upon learning that disclosure of such information concerning any
Holder is sought in or by a court or governmental body of competent jurisdiction or through other means, give prompt written 

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notice to such Holder and allow such Holder, at the Holder's expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective order for, such information. 

3.12  Certificates. The Company shall cooperate with each of the Holders who hold Registrable Securities being offered, and to the extent
applicable, to facilitate the timely preparation and delivery of certificates (not bearing any restrictive legend) representing the Registrable Securities to be offered pursuant to a Registration
Statement and enable such certificates to be in such denominations or amounts, as the case may be, as the Holders may reasonably request and registered in such names as the Holders may request. 

3.13  Transfer Agent and Registrar. The Company shall provide a transfer agent and registrar of all such Registrable Securities not later
than the effective date of such Registration Statement. 

3.14  Amendments and Supplements Requested by Holders. If requested by any Holder, the Company shall (a) as soon as practicable
incorporate in a Prospectus supplement or post-effective amendment such information as such Holder requests to be included therein relating to the sale and distribution of Registrable
Securities, including without limitation, information with respect to the number of Registrable Securities being offered or sold, the purchase price being paid therefor and any other terms of the
offering of the Registrable Securities to be sold in such offering, (b) as soon as practicable make all required filings of such Prospectus supplement or post-effective amendment
after being notified of the matters to be incorporated in such Prospectus supplement or post-effective amendment, and (c) supplement or make amendments to any Registration Statement
if reasonably requested by any Holder of such Registrable Securities. 

3.15  Additional Registrations and Approvals. The Company shall use its best efforts to cause the Registrable Securities covered by the
applicable Registration Statement to be registered with or approved by such other governmental agencies or authorities as may be necessary to consummate the disposition of such Registrable Securities. 

3.16  Earnings Statements. The Company shall make generally available to its security holders as soon as practical, but not later than
ninety (90) days after the close of the period covered thereby, an earnings statement (in form complying with the provisions of Rule 158 under the 1933 Act) covering a twelve
(12) month period beginning not later than the first day of the Company's fiscal quarter next following the effective date of the Registration Statement, provided that the Company shall be
deemed to satisfy its obligations under this Section 3.16 if it timely makes all required filings under the 1934 Act and does not change its
fiscal year. 

3.17  SEC Compliance. The Company shall otherwise comply with all applicable rules and regulations of the SEC in connection with any
registration hereunder. 

3.18  Confirmation of Registration. Within two (2) business days after a Registration Statement which covers applicable
Registrable Securities is ordered effective by the SEC, the Company shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such Registrable Securities (with
copies to the Holders whose Registrable Securities are included in such Registration Statement and to Legal Counsel) confirmation that such Registration Statement has been declared effective by the
SEC in the form attached hereto as Exhibit A. 

3.19  Actions for Public Offering. The Company shall provide such opinions, certifications, indemnifications, and take such other
actions, including without limitation, entering into such
agreements (including underwriting agreements), as are reasonably required and appropriate, to permit the Holders to make a public offering of the Registrable Securities requested to be registered. 

3.20  Rule 144 Requirements. The Company covenants that it shall file the reports required to be filed by it under the 1933 Act
and the 1934 Act, and the rules and regulations adopted by the SEC thereunder, provided, however, the Company may delay any such filing but only pursuant to 

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Rule 12b-25 under the 1934 Act, and the Company shall take such further action as any Holder of Registrable Securities may reasonably request (including without limitation, promptly
obtaining and required legal opinions from Company counsel necessary to effect the sale of Registrable Securities under Rule 144 and paying the related fees and expenses of such counsel), all
to the extent required from time to time to enable such Holder to sell Registrable Securities without registration under the 1933 Act within the limitation of the exemptions provided by
(a) Rule 144 under the Act, as such Rule may be amended from time to time, or (b) any similar rule or regulation hereafter adopted by the SEC. Upon the request of any Holder of
Registrable Securities, the Company will deliver to such Holder a written statement as to whether it has complied with such requirements. If the Company fails to satisfy its covenants and obligations
under this Section 3.20, then it shall be in breach of this Agreement (such a breach being a "Rule 144
Default"). As partial relief for any Rule 144 Default and for damages to any Holder by reason of any delay or inability to sell the underlying shares of Common Stock,
the remedy shall be as provided for by the Preferred Warrants and the Certificate of Designation (which remedy shall not be exclusive of any other remedies available at law or in equity).
Notwithstanding the foregoing, the Company shall have 30 days to cure a Rule 144 Default after the date of its occurrence and to deliver a written statement to the holders of Registrable
Securities that such Rule 144 Default has been so cured; and if such cure is timely effected and such statement is timely delivered, the Company shall not be subject to the remedies for a
Rule 144 Default. 

IV.  OBLIGATIONS OF THE HOLDERS. 

4.1  Furnish Information. The Company's obligation to cause any Registration Statement to become effective in connection with
distribution of any Registrable Securities pursuant to this Agreement is contingent upon each Holder, with reasonable promptness, furnishing to the Company such information regarding itself, the
Registrable Securities held by it, and the intended method of disposition of such securities, as is required pursuant to Regulation S-K promulgated under the 1933 Act, to effect the
registration of the Registrable Securities. Each Holder agrees, by acquisition of the Registrable Securities, that it shall not be entitled to sell any of such Registrable Securities pursuant to the
Registration Statement or to receive a Prospectus relating thereto, unless such Holder has furnished the Company with all information required to be disclosed in order to make the information
previously furnished to the Company by such Holder not misleading in a material respect and any other information regarding such Holder and the distribution of such Registrable Securities as the
Company may from time to time reasonably request. Any sale of any Registrable Securities by any Holder shall
constitute a representation and warranty by such Holder that the information relating to such Holder and its plan of distribution is as set forth in the Prospectus delivered by such Holder in
connection with such disposition, that such Prospectus does not as of the time of such sale contain any untrue statement of a material fact relating to or provided by such Holder or relating to its
plan of distribution and that such Prospectus does not as of the time of such sale omit to state any material fact relating to or provided by such Holder or relating to its plan of distribution
necessary to make the statements in such Prospectus, in the light of the circumstances under which they were made, not misleading. 

V.  INDEMNIFICATION. 

In
the event of any registration under this Agreement: 

5.1  Indemnification by the Company. The Company will indemnify and hold harmless each Holder and its officers, directors, partners and
affiliates (and their officers, directors and partners), any underwriter (as defined in the 1933 Act) for each Holder and each person (and its officers, directors, partners and affiliates), if any,
who controls any Holder or underwriter within the meaning of the 1933 Act or the 1934 Act (each a "Company Indemnified Person"), against any losses,
claims, damages, expenses or liabilities, joint or several, or actions in respect thereof ("Losses") to which they may become subject under the 1933
Act, the 1934 Act, or other federal or state law, insofar as such Losses arise out of or are based upon any of the following statements, omissions or violations (collectively a 

9

 

"Violation"): (a) any untrue statement or alleged untrue statement of a material fact contained in such Registration Statement, including any
preliminary Prospectus or final Prospectus contained therein or any amendments or supplements thereto, (b) the omission or alleged omission to state therein 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, or (c) any violation or alleged violation by the
Company of the 1933 Act, the 1934 Act, any state securities law, or any rule or regulation promulgated under the 1933 Act, the 1934 Act, or any state securities law, and the Company will pay to each
such Company Indemnified Person, as incurred, any legal or other expenses reasonably incurred by or on behalf of him in connection with investigating or defending any such Loss; provided, however,
that the indemnity agreement contained in this Section 5.1 shall not apply to amounts paid in settlement of any such Loss if such settlement is
effected without the consent of the Company (which consent shall not be unreasonably withheld), nor will the Company be liable in any such case for any such Loss to the extent that it arises out of or
is based upon (a) a Violation which occurs solely as the result of the written information furnished by any Holder, underwriter or controlling person seeking indemnification hereunder, as
applicable, expressly for inclusion in the Registration Statement, or (b) with respect to any underwriter and controlling person of such underwriter (and their respective officers and
directors), a Violation which results from the fact that there was not sent or given to a person who bought Registrable Securities, at or prior to the written confirmation of the sale, a copy of the
final Prospectus, as then amended or supplemented, if the Company had previously furnished
copies of such Prospectus hereunder and such Prospectus corrected the misstatement or omission forming the basis of the Violation. 

5.2  Indemnification by Holders. Each Holder will indemnify and hold harmless the Company, each of its directors, each of its officers
who has signed the Registration Statement, each person, if any, who controls the Company within the meaning of the 1933 Act, any underwriter and any controlling person of any such underwriter or other
holder (each a "Holder Indemnified Person"), against any Losses to which any of the foregoing persons may become subject, under the 1933 Act, the 1934
Act, or other federal or state law, insofar as such Losses arise out of or are based upon any Violation, in each case to the extent (and only to the extent) that such Violation occurs solely as a
result of the written information furnished by each Holder expressly for inclusion in the applicable Registration Statement, and such Holder will pay, as incurred, any legal or other expenses
reasonably incurred by any Holder Indemnified Person intended to be indemnified pursuant to this Section 5.2, in connection with investigating or
defending any such Loss; provided, however, that any Holder's liability pursuant to this Section 5.2 shall be limited to the amount of the net
proceeds received by such Holder from the sale of the Registrable Securities sold by it, and further provided that the indemnity agreement contained in this  Section 5.2 does not apply to amounts
paid in settlement of any such Loss if such settlement is effected without the consent of such Holder,
which consent shall not be unreasonably withheld. 

5.3  Indemnification Procedures. Promptly after receipt by an indemnified party under this  Article V of notice of the commencement of any action (including any
governmental action), such indemnified party will, if a claim in respect
thereof is to be made against any indemnifying party under this Article V, deliver to the indemnifying party a written notice of the commencement
of such action and the indemnifying party will have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to
assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party (together with all other indemnified parties which may be represented without
conflict by one counsel) will have the right to retain one separate counsel, with the fees and expenses to be paid by the indemnifying party, if representation of the indemnified party by the counsel
retained by the indemnifying party would be inappropriate due to actual or potential differing interests between the indemnified party and any other party represented by such counsel in the same
proceeding. If the indemnifying party shall fail to defend the action, or conducts a defense which is not reasonably adequate in light of the circumstances, the indemnified party may conduct its own
defense and shall be entitled to reimbursement for the costs of 

10

 

such defense. The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability
to the indemnified party under this Agreement, except to the extent that the indemnifying party is materially prejudiced by such failure. The omission so to deliver written notice to the indemnifying
party does not relieve it of any liability that it may have to any indemnified party otherwise than under this Agreement. No indemnifying party under this Agreement will enter into any settlement or
consent to any entry of judgment without the indemnified party's written consent which does not include as an
unconditional term thereof the giving by the claimant or plaintiff to the indemnified party of a release from all liability in respect of such claim or litigation. 

5.4  Contribution. If the indemnification provided for in this Article V is held
by a court of competent jurisdiction to be unavailable to an indemnified party or is insufficient to indemnify an indemnified party with respect to any Loss, then the indemnifying party, in lieu of or
in addition to, as appropriate, indemnifying such indemnified party hereunder, will contribute to the amount paid or payable by such indemnified party as a result of such Loss in such proportion as is
appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other in connection with the statements or omissions that resulted in such Loss
as well as any other relevant equitable considerations. The relative fault of the indemnifying party and of the indemnified party will be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties'
relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission. The obligation of any Holder to make a contribution pursuant to this  Section 5.4
shall be limited to the net proceeds received by such Holder from the sale of the Registrable Securities sold by it, less any amounts
paid pursuant to Section 5.2. To the extent any indemnification by an indemnifying party is prohibited or limited by law, the indemnifying party
agrees to make the maximum contribution with respect to any amounts for which it would otherwise be liable under Article V to the fullest extent
permitted by law; provided, however, that: (a) no seller of Registrable Securities guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be
entitled to contribution from any seller of Registrable Securities who was not guilty of fraudulent misrepresentation, and (b) contribution by any seller of Registrable Securities shall be
limited in amount to the net amount of proceeds received by such seller from the sale of such Registrable Securities pursuant to such Registration Statement. 

5.5  Survival. The indemnity and contribution provisions contained in this  Article V shall remain operative and in full force and effect regardless of (a) any
termination of this Agreement, (b) any
investigation made by or on behalf of any Holder or any person controlling any Holder, or the Company, or the Company's officers or directors or any person controlling the Company, and (c) the
sale of any Registrable Securities by any Holder. 

VI.  MISCELLANEOUS. 

6.1  Expenses. The Company shall bear all fees and expenses incurred in connection with the performance by the Company of its obligations
under this Agreement (including without limitation, all registration and filing fees, fees with respect to filings required to be made with the National Association of Securities Dealers, Inc.,
fees and expenses of compliance with securities or "Blue Sky" laws, printing expenses, messenger, telephone and distribution expenses associated with the preparation and distribution of any
Registration Statement, all fees and expenses associated with the listing of any
Registrable Securities on any securities exchange or exchanges, the fees and disbursements of counsel for the Company and its accountants, any underwriting fees and the reasonable fees and expenses of
one counsel to the Holders, not to exceed an amount equal to $25,000, whether or not the Registration Statement is declared effective. Notwithstanding the provisions of this  Section 6.1, each
seller of Registrable Securities shall pay all underwriting fees and expenses, selling commissions and stock transfer and
documentary stamp taxes, if any, applicable to any Registrable Securities registered and sold by such seller and all registration expenses to the extent the Company is prohibited from paying such
expenses under applicable law. 

11

  

6.2  Assignment of Registration Rights. The rights under this Agreement shall be automatically assignable by any Holder to any transferee
of all or any portion of Registrable Securities if: (a) such Holder agrees in writing with the transferee or assignee to assign such rights, and a copy of such agreement is furnished to the
Company within a reasonable time after such assignment; (b) the Company is, within a reasonable time after such transfer or assignment, furnished with written notice of (i) the name and
address of such transferee or assignee, and (ii) the securities with respect to which such registration rights are being transferred or assigned; (c) immediately following such transfer
or assignment the further disposition of such securities by the transferee or assignee is restricted under the 1933 Act and applicable state securities laws; (d) at or before the time the
Company receives the written notice contemplated by clause (b) of this sentence the transferee or assignee agrees in writing with the Company to be bound by all of the provisions contained
herein and (e) at least 100,000 shares of Common Stock (or the equivalent number of Preferred Shares that would convert into that number of shares of Common Stock or the equivalent number of
Preferred Warrants that are exercisable for that number of shares of Common Stock) are transferred by such Holder to the transferee of the Registrable Securities contemplated by this
Section 6.2. 

VII.  GENERAL. 

7.1  Notice. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement
must be in writing and will be deemed to have been delivered: (a) upon receipt, when delivered personally, (b) upon receipt, when sent by facsimile (provided confirmation of transmission
is mechanically or electronically generated and kept on file by the sending party), or (c) one (1) business day after deposit with an overnight courier service, in each case properly
addressed to the party to receive the same. The addresses and facsimile numbers for such communications shall be: 

If
to the Company: 

Intraware, Inc.

25 Orinda Way

Orinda, CA 94563

Telephone: (925) 253-4500

Facsimile: (925) 253-4541

Attention: General Counsel 

With
a copy to (which shall not constitute notice): 

Wilson
Sonsini Goodrich & Rosati, Professional Corporation

650 Page Mill Road

Palo Alto, CA 94304

Telephone: (650) 493-9300

Facsimile: (650) 493-6811

Attention: Adam R. Dolinko, Esq. 

If
to a Holder, to its most recent address and facsimile number provided to the Company five (5) days prior to the effectiveness of any change thereof, together with a copy to
[                  ]. 

Written
confirmation of receipt (a) given by the recipient of such notice, consent, waiver or other communication, (b) mechanically or electronically generated by the sender's facsimile
machine containing the time, date, recipient facsimile number and an image of the first page of such transmission, or (c) provided by an overnight courier service shall be rebuttable evidence
of personal service, receipt by facsimile or receipt from an overnight courier service in accordance with clause (a), (b) or (c) above, respectively. 

12

 

7.2  Owner of Registrable Securities. A Person is deemed to be a holder of Registrable Securities whenever such Person owns or is deemed
to be owner of record of such Registrable Securities. If the Company receives conflicting instructions, notices or elections from two or more Persons with respect to the same Registrable Securities,
the Company shall act upon the basis of instructions, notice or election received from the registered owner of such Registrable Securities. 

7.3  Consents. All consents and other determinations to be made by the Holders pursuant to this Agreement shall be made, unless otherwise
specified in this Agreement, by Holders holding a majority of the Registrable Securities, determined as if all the Preferred Shares then outstanding have been converted into Registrable Securities and
all the Preferred Warrants then outstanding have been exercised for Registrable Securities without regard for any limitations on conversion of the Preferred Shares or exercise of the Preferred
Warrants. 

7.4  Additional Parties. The parties hereto agree that additional holders of Preferred Shares (or warrants to acquire Preferred Shares)
of the Company may, with the consent only of the Company, be added as parties to this Agreement with respect to any or all securities of the Company held by them, and shall thereupon be deemed for all
purposes "Holders" hereunder; provided, however, that from and after the date of this Agreement, the Company shall not without the prior written consent of holders of majority of the outstanding
Conversion Shares enter into any agreement with any holder or prospective holder of any securities of the Company providing for the grant to such holder of rights superior to
those granted herein. Any such additional party shall execute a counterpart of this Agreement, and upon execution by such additional party and by the Company, shall be considered a Holder for purposes
of this Agreement. 

7.5  Specific Performance. Each of the parties hereto acknowledges and agrees that the breach of this Agreement would cause irreparable
damage to the other parties hereto and that the other parties hereto will not have an adequate remedy at law. Therefore, the obligations of each of the parties hereto under this Agreement shall be
enforceable by a decree of specific performance issued by any court of competent jurisdiction, and appropriate injunctive relief may be applied for and granted in connection therewith. Such remedies
shall, however, be cumulative and not exclusive and shall be in addition to any other remedies which any party may have under this Agreement or otherwise. 

7.6  Entire Agreement; Amendment. This Agreement supersedes all other prior oral or written agreements among the parties, their
affiliates and persons acting on their behalf with respect to the matters discussed herein, and this Agreement and the instruments referenced herein contain the entire understanding of the parties
with respect to the matters covered herein and therein. No provision of this Agreement may be amended or waived other than by an instrument in writing signed by the Company and the Holders of at least
a majority of the Registrable Securities then outstanding. Notwithstanding the foregoing, a waiver or consent to depart from the provisions hereof with respect to a matter that relates exclusively to
the rights of Holders of Registrable Securities whose securities are being sold pursuant to the Registration Statement and that does not directly or indirectly affect the rights of other Holders of
Registrable Securities may be given by Holders of at least a majority of the Registrable Securities being sold by such Holders pursuant to such Registration Statement. Each Holder of Registrable
Securities outstanding at the time of any such amendment, modification, supplement, waiver or consent or thereafter shall be bound by any such amendment, modification, supplement, waiver or consent
effected pursuant to this Section 7.6, whether or not any notice, writing or marking indicating such amendment, modification, supplement, waiver
or consent appears on the Registrable Securities or is delivered to such Holder. 

7.7  Severability. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or
unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any provision of this Agreement in any
other jurisdiction. 

13

 

7.8  Termination. This Agreement and the obligations of the parties hereunder shall terminate as of the end of the Registration Period
except for Article V hereof which shall survive and remain in full force and effect in accordance with its terms. 

7.9  Governing Law; Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws of the State of New York
without regard to principles of conflicts of laws. Any action or proceeding seeking to enforce any provision of, or based on any right arising out of, this Agreement
may be brought against any of the parties in the courts of the State of New York or, if it has or can acquire jurisdiction, in the United States District Court for the Southern District of New York,
and each of the parties consents to the jurisdiction of such courts (and of the appropriate appellate courts) in any such action or proceeding and waives any objection to venue laid therein. Process
in any action or proceeding referred to in the preceding sentence may be served on any party anywhere in the world. 

7.10  Headings. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation
of, this Agreement. 

7.11  Successors and Assigns; No Third Party Beneficiaries. Subject to  Section 6.2, this Agreement shall be binding upon and inure to the benefit of the parties and
their respective successors and permitted assigns.
Nothing in this Agreement shall create or be deemed to create any third-party beneficiary rights in any person not a party to this Agreement except as provided below and in  Section 6.2. Upon any
assignment, the references in this Agreement to any Holder shall also apply to any such assignee unless the context
otherwise requires. 

7.12  Further Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall
execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the intent and accomplish the purposes of this
Agreement and the consummation of the transactions contemplated hereby. 

7.13  No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against any party. 

7.14  Counterparts. This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the
same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party; provided that a facsimile signature shall be considered due execution and
shall be binding upon the signatory thereto with the same force and effect as if the signature were an original, not a facsimile signature. 

[The
rest of this page has been intentionally left blank] 

14

IN WITNESS WHEREOF, the parties hereto have executed or have caused this Agreement to be executed by their respective officers thereunto duly
authorized, as of the date first written above. 

	 	 	Intraware, Inc.
	

 	
 	

By:
 Name:

Title:
	The foregoing Agreement is

hereby accepted as of the date

first above written:	 	 
	

By
	
 	

 
	       Title:	 	 

 
 

SCHEDULE I    
  

This
Schedule I shows the names and addresses of the Investors under the Registration Rights Agreement. 

[NAME
OF INVESTOR] 

Address
for all communications, including written confirmation of such wire transfers: 

[TO
BE PROVIDED] 

Telecopy
No. 

Telephone
No. 

Tax
ID # 

 
 

EXHIBIT A
  
    Form of Notice of Effectiveness of Registration Statement    
  

[Transfer
Agent] 

Attn:

Re:
Intraware, Inc. 

Ladies
and Gentlemen: 

We
are counsel to Intraware, Inc., a Delaware corporation (the "Company"), and have represented the Company in connection with those certain Subscription Agreements (the "Subscription
Agreements") entered into by and among the Company and the Investors named therein (collectively, the "Holders") pursuant to which the Company issued to the Holders shares of its Series B
Convertible Preferred Shares (the "Preferred Shares") convertible into shares of the Company's common stock, par value $0.0001 per share (the "Common Stock") and warrants (the "Warrants") to purchase
shares of the Company's Common Stock. Pursuant to the above mentioned agreements, the Company also has entered into a Registration Rights Agreement with the Holders (the "Registration Rights
Agreement") pursuant to which the Company agreed, among other things, to register the Registrable Securities (as defined in the Registration Rights Agreement), including the shares of Common Stock
issuable upon conversion of the Preferred Shares and the shares of Common Stock issuable upon exercise of the Preferred Warrants, under the 1933 Act of 1933, as amended (the "1933 Act"). In connection
with the Company's obligations under the Registration Rights Agreement, on                   , the Company filed a Registration Statement on Form
 S-3
(File No. 333-            ) (the "Registration Statement") with the Securities and Exchange Commission (the "SEC") relating to the Registrable
Securities which names each of the Holders as a selling stockholder thereunder. 

In
connection with the foregoing, we advise you that a member of the SEC's staff has advised us by telephone that the SEC has entered an order declaring the Registration Statement effective under the
1933 Act at [Enter Time of Effectiveness] on [Enter Date of Effectiveness] and we have no knowledge, after telephonic inquiry of a member of the SEC's
staff, that any stop order suspending its effectiveness has been issued or that any proceedings for that purpose are pending before, or threatened by, the SEC and the Registrable Securities are
available for resale under the 1933 Act pursuant to the Registration Statement. 

	 	 	Very truly yours,

[Issuer's Counsel]

By:
	

cc:  [List Names of Holders]	
 	

 

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Exhibit 10.1

REGISTRATION RIGHTS AGREEMENT

SCHEDULE I

EXHIBIT A Form of Notice of Effectiveness of Registration StatementPrepared by MERRILL CORPORATION www.edgaradvantage.com

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Exhibit 10.2  

 
 

SUBSCRIPTION AGREEMENT    
  

THIS SUBSCRIPTION AGREEMENT made as of this 2nd day of April, 2001 between Intraware, Inc., a corporation organized under the laws of the
State of Delaware with offices at 25 Orinda Way, Suite 101, Orinda, California 94563 (the "Company"), and the undersigned (the
"Subscriber", and together with each of the other subscribers in the Offering (defined below), the
"Subscribers"). 

WHEREAS, the Company desires to issue a minimum of six (6) (the "Minimum Offering") and a maximum
of fourteen (14) units (including fractions thereof) (the "Maximum Offering") (such units, the "Preferred
Units") in a private placement (the "Offering"), each Unit consisting of (a) 50,000 shares of Series B Convertible
Preferred Stock (the "Preferred Shares") convertible into shares (the "Conversion Shares") of the
Company's common stock, $0.0001 par value (the "Common Stock"), and (ii) a warrant (the "Preferred
Warrants") to purchase shares of Common Stock representing 20% (subject to adjustment) of the number of shares of Common Stock issuable upon conversion of 50,000 of the
Preferred Shares (the "Warrant Shares" and, together with the Conversion Shares, the "Issuable Shares");
and 

WHEREAS, [                  ] is acting as placement agent (the "Placement
Agent") in the Offering pursuant to a Placement Agency Agreement dated April 2, 2001 between the Company and the Placement Agent (the "Agency
Agreement"); and 

WHEREAS, the Preferred Shares are convertible into the Conversion Shares on the terms set forth in the Company's Certificate of Designations,
Preferences and Rights of Series B Convertible Preferred Stock (the "Series B Designation"), the form of which is attached to this
Subscription Agreement as Exhibit A. 

WHEREAS, each Warrant represents the right to purchase one share of Common Stock (the "Warrant Shares")
on the terms set forth in the Preferred Warrant, the form of which is attached to this Subscription Agreement as Exhibit B; and 

WHEREAS, the Conversion Shares and the Warrant Shares are entitled to registration rights on the terms set forth in this Subscription Agreement and in
the Registration Rights Agreement (the "Registration Rights Agreement"), attached hereto as  Exhibit C and incorporated herein by reference and made a
part hereof; and 

WHEREAS, the Subscriber is delivering simultaneously herewith a completed confidential investor questionnaire (the
"Questionnaire"). 

NOW, THEREFORE, for and in consideration of the promises and the mutual covenants hereinafter set forth, the parties hereto do hereby agree as follows: 

I. SUBSCRIPTION FOR UNITS AND REPRESENTATIONS BY AND COVENANTS OF SUBSCRIBER  

1.1  Subscription for Preferred Units. Subject to the terms and conditions hereinafter set forth, the Subscriber hereby subscribes for
and agrees to purchase from the Company such number of Preferred Units as is set forth upon the signature page hereof at a price equal to $500,000 per Unit and the Company agrees to sell such
Preferred Units to the Subscriber for said purchase price subject to the Company's right to sell to the Subscriber such lesser number of Preferred Units as the Company may, in its sole discretion,
deem necessary or desirable. The purchase price is payable by certified or bank check made payable to "American Stock Transfer & Trust Company as escrow agent for Intraware, Inc."
(American Stock Transfer & Trust Company is referred to as the "Escrow Agent") or by wire transfer of funds, contemporaneously with the execution
and delivery of this Subscription Agreement. The Escrow Agent shall act as such in accordance with the terms and conditions of an Escrow Agreement to be entered into among the Placement Agent, the
Company and the Escrow 

 

Agent. The Preferred Shares and Preferred Warrants shall be delivered by the Company within five (5) business days following the consummation of the Offering as set forth in  Article III.

1.2  Reliance on Exemptions. The Subscriber acknowledges that this offering of Preferred Units has not been reviewed by the United States
Securities and Exchange Commission ("SEC") or any state agency because of the Company's representations that this is intended to be a nonpublic offering
exempt from
the registration requirements of the Securities Act of 1933, as amended (the "1933 Act") and state securities laws. The Subscriber understands that the
Company is relying in part upon the truth and accuracy of, and the Subscriber's compliance with, the representations, warranties, agreements, acknowledgments and understandings of the Subscriber set
forth herein in order to determine the availability of such exemptions and the eligibility of the Subscriber to acquire the Preferred Units. 

1.3  Investment Purpose. The Subscriber represents that the Preferred Shares and Preferred Warrants comprising its Preferred Units are
being purchased for its own account, for investment purposes only and not for distribution or resale to others in contravention of the registration requirements of the 1933 Act. The Subscriber agrees
that it will not sell or otherwise transfer the Preferred Shares or Preferred Warrants unless they are registered under the 1933 Act or unless an exemption from such registration is available. 

1.4  Accredited Investor. The Subscriber represents and warrants that it is an "accredited investor" as such term is defined in
Rule 501 of Regulation D promulgated under the 1933 Act, as indicated by its responses to the Questionnaire, and that it is able to bear the economic risk of any investment in the
Preferred Units. The Subscriber further represents and warrants that the information furnished in the Questionnaire is accurate and complete in all material respects. 

1.5  Risk of Investment. The Subscriber recognizes that the purchase of Preferred Units involves a high degree of risk in that:
(i) the Company has incurred substantial losses from operations; (ii) an investment in the Company is highly speculative and only investors who can afford the loss of their entire
investment should consider investing in the Company and the Preferred Units; (iii) an investment in the Preferred Units is illiquid; (iv) transferability of the securities comprising the
Preferred Units is extremely limited; and (v) the Company will require substantial additional funds to operate its business and there can be no assurance that the Maximum Offering will be
completed or that any other funds will be available to the Company. 

1.6  Information. The Subscriber acknowledges receipt and careful review of: (a) the Annual Report of the Company for the fiscal
year ended February 29, 2000 filed with the SEC on Form 10-K on May 26, 2000, as amended on November 9, 2000, (b) the Quarterly Report of the Company for
the fiscal quarter ended May 31, 2000 filed with the SEC on Form 10-Q on July 17, 2000, (c) the Quarterly Report of the Company for the fiscal quarter ended
August 31, 2000 filed with the SEC on Form 10-Q on October 16, 2000, (d) the Quarterly Report of the Company for the fiscal quarter ended November 30,
2000 filed with the SEC on Form 10-Q on January 16, 2001, (e) a Confidential Executive Summary prepared by the Company and attached hereto as  Schedule 1.6 (the "Confidential Executive Summary"), (f) the Agency Agreement,
(g) the Preferred Warrant, (h) this Subscription Agreement, (i) the Registration Rights Agreement, (j) the Series B Designation, and (k) all exhibits,
schedules and appendices which are part of the aforementioned documents (collectively, the "Offering Documents"), and hereby represents that:
(i) it has been furnished by the Company during the course of this transaction with all information regarding the Company which it has requested; and (ii) that it has been afforded the
opportunity to ask
questions of and receive answers from duly authorized officers of the Company concerning the terms and conditions of the Offering, and any additional information which it has requested. 

1.7  No Representations. The Subscriber hereby represents that, except as expressly set forth in the Offering Documents, no
representations or warranties have been made to the Subscriber by the 

2

 

Company or any agent, employee or affiliate of the Company, including the Placement Agent, and in entering into this transaction the Subscriber is not relying on any information other than that
contained in the Offering Documents and the results of independent investigation by the Subscriber. 

1.8  Tax Consequences. The Subscriber acknowledges that this offering of Preferred Units may involve tax consequences and that the
contents of the Offering Documents do not contain tax advice or information. The Subscriber acknowledges that he must retain his own professional advisors to evaluate the tax and other consequences of
an investment in the Preferred Units. 

1.9  Transfer or Resale. The Subscriber understands that, except as set forth in the Registration Rights Agreement: (a) the
Preferred Units have not been and are not being registered under the 1933 Act or any state securities laws; (b) the Preferred Shares, the Conversion Shares, the Preferred Warrants and the
Warrant Shares (collectively, the "Securities") may not be offered for sale, sold, assigned, transferred or otherwise disposed of (each a
"Disposition") unless, prior to effecting any such Disposition, (i) (A) such Securities, or the offering of such Securities, as applicable, are
or is subsequently registered under the 1933 Act, (B) the Subscriber delivers to the Company an opinion of counsel, in a reasonably acceptable form, that a Disposition of the Securities may be
made pursuant to an exemption from such registration, or (C) the Subscriber provides the Company with reasonable assurance that a Disposition of the Securities may be made pursuant to
Rule 144 promulgated under the 1933 Act (the "Rule") and (ii) the Subscriber and all direct or indirect transferees in any such
Disposition have agreed in writing upon the aggregate number of Issuable Shares that each such direct or indirect transferee may receive upon the conversion or exercise, as the case may be, of the
Preferred Shares and the Preferred Warrants transferred to such transferee so that such exercise or conversion does not, when aggregated with conversions or exercises allocated to the Subscriber and
any other transferees of such Subscriber, exceed the Per Subscriber Limit (defined below); (c) any Disposition of Securities made in reliance upon the Rule may be made only in accordance with
the terms of the Rule and further, if the Rule is not applicable, any Disposition of the Securities under circumstances in which the seller (or the person through whom the Disposition is made) may be
deemed to be an underwriter (as such term is defined in the 1933 Act) may require compliance with some other exemption under the 1933 Act or the rules and regulations of the SEC promulgated
thereunder; and (d) the Company is under no obligation to register the Securities under the 1933 Act or any state securities laws or to comply with the terms and conditions of any registration
exemption thereunder. 

1.10  Lock-Up. The Subscriber hereby agrees to enter into a lock-up agreement (the
"Lock-Up Agreement") in the form attached hereto as Exhibit D, provided that
(i) Frost Prioleau enters into a substantially similar agreement, (ii) Peter Jackson enters into a lock-up agreement in the form attached hereto as  Exhibit E (the "Jackson Lock-Up") and (iii) each of David Dunlap, Norman
Pensky, Donald Freed, Paul Martinelli and James Brentano enter into a lock-up agreement in the form attached hereto as Exhibit F
(together, the "Other Lock-Ups"). 

1.11  Placement Agent. The Subscriber agrees that neither the Placement Agent or any of its directors, officers, employees or agents
shall be liable to any Subscriber for any action taken or omitted to be taken by it in connection therewith, except for willful misconduct or gross negligence. 

1.12  Legends. The Subscriber understands that the certificates or other instruments representing the Securities, until such time as they
have been registered under the 1933 Act as contemplated by the Registration Rights Agreement, shall bear a restrictive legend in substantially the following form (and a stop-transfer order
may be placed against transfer of such certificates or other instruments): 

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE 

3

 

SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, OR (B) AN OPINION OF COUNSEL, IN A REASONABLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED
UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS, OR (II) UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT. 

The
legend set forth above shall be removed and the Company shall issue a certificate or other instrument without such legend to the holder of the Securities upon which it is stamped, if
(a) such Securities are registered under the 1933 Act, (b) such holder delivers to the Company an opinion of counsel, in a reasonably acceptable form, to the Company that a Disposition
of the Securities may be made pursuant to an exemption from such registration, or (c) such holder provides the Company with reasonable assurance that a Disposition of the Securities may be made
pursuant to the Rule without any restriction as to the number of securities acquired as of a particular date that can then be immediately sold. 

The
Subscriber acknowledges that any certificates representing the Securities will bear a legend stating that the securities represented by such certificates are subject to the terms of the
Lock-Up Agreement. 

1.13  Validity; Enforcement. If the Subscriber is a corporation, partnership, trust or other entity, the Subscriber represents and
warrants that: (a) it is authorized and otherwise duly qualified to purchase and hold the Preferred Units; and (b) that this Subscription Agreement has been duly and validly authorized,
executed and delivered and constitutes the legal, binding and enforceable obligation of the undersigned. 

1.14  Residency. The Subscriber represents that its principal address is furnished at the end of this Subscription Agreement. 

1.15  Foreign Subscriber. If the Subscriber is not a United States person, such Subscriber hereby represents that it has satisfied itself
as to the full observance of the laws of its jurisdiction in connection with any invitation to subscribe for the securities comprising the Preferred Units or any use of this Subscription Agreement,
including: (a) the legal requirements within its jurisdiction for the purchase of the Preferred Units; (b) any foreign exchange restrictions applicable to such purchase; (c) any
governmental or other consents that may need to be obtained; and (d) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale or
transfer of the securities comprising the Preferred Units. Such Subscriber's subscription and payment for, and his or her continued beneficial ownership of the Preferred Units, will not violate any
applicable securities or other laws of the Subscriber's jurisdiction. 

1.16  NASD Member. The Subscriber acknowledges that if it is a Registered Representative of a NASD member firm, the Subscriber must give
such firm notice required by the NASD's Rules of Fair Practice, receipt of which must be acknowledged by such firm on the signature page hereof. 

II. REPRESENTATIONS BY THE COMPANY  

The
Company represents and warrants to the Subscriber, except as set forth in the disclosure schedules attached hereto: 

2.1  Organization and Qualification. The Company and its "Subsidiaries" (which for
purposes of this Subscription Agreement means any entity in which the Company, directly or indirectly, owns capital stock and holds a majority or similar interest) are duly organized and validly
existing in good standing under the laws of the jurisdiction in which they were organized, and have the requisite power and authorization to own their properties and to carry on their business as now
being conducted. Each of the Company and its Subsidiaries is duly qualified as a foreign corporation to do business and is in good standing in every jurisdiction in which its ownership of property or
the nature of the business 

4

 

conducted by it makes such qualification necessary, except to the extent that the failure to be so qualified or be in good standing would not have a Material Adverse Effect. As used in this
Subscription Agreement, "Material Adverse Effect" means any material adverse effect on the business, properties, assets, operations, results of
operations, financial condition or prospects of the Company and its Subsidiaries, if any, taken as a whole, or on the transactions contemplated hereby, or by the other Offering Documents or the
agreements and instruments to be entered into in connection herewith or therewith, or on the authority or ability of the Company to perform its obligations under the Offering Documents. A complete
list of all Subsidiaries of the Company with substantive business activities is set forth in Schedule 2.1. 

2.2  Authorization; Enforcement; Validity. The Company has the requisite corporate power and authority to enter into and perform its
obligations under this Subscription Agreement and other Offering Documents, to file and perform its obligations under the Offering Documents, and to issue the Securities in accordance with the terms
of the Offering Documents. The execution and delivery of the Offering Documents by the Company and the consummation by the Company of the transactions contemplated by the Offering Documents, including
without limitation the issuance of the Securities, have been duly authorized by the Company's board of directors and no further consent or authorization is required by the Company, its board of
directors or its stockholders. The Offering Documents have been duly executed and delivered by the Company, and constitute valid and binding obligations of the Company enforceable against the Company
in accordance with their terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar
laws relating to, or affecting generally, the enforcement of creditors' rights and remedies. 

2.3  Capitalization. The authorized, issued and outstanding capital stock of the Company prior to the consummation of the transactions
contemplated hereby is set forth in Schedule 2.3. All of such outstanding shares have been and are, or upon issuance will be duly authorized,
validly issued, fully paid and non-assessable. Except as disclosed in Schedule 2.3, (i) no shares of the Company's capital
stock are subject to preemptive rights under Delaware law or any other similar rights or any liens or encumbrances suffered or permitted by the Company; (ii) there are no outstanding debt
securities issued by the Company; (iii) there are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or
rights convertible into or exchangeable for, any shares of capital stock of the Company or any of its Subsidiaries, or contracts,
commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to issue additional shares of capital stock of the Company or any of its Subsidiaries
or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into or exchangeable for, any shares of capital
stock of the Company or any of its Subsidiaries; (iv) there are no agreements or arrangements under which the Company or any of its Subsidiaries is obligated to register the sale of any of
their securities under the 1933 Act; (v) there are no outstanding securities of the Company or any of its Subsidiaries which contain any redemption or similar provisions, and there are no
contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to redeem a security of the Company or any of its Subsidiaries;
(vi) there are no securities or instruments containing anti-dilution or similar provisions that will be triggered by the issuance of the Securities as described in the Offering
Documents; and (vii) the Company does not have any stock appreciation rights or "phantom stock" plans or agreements or any similar plan or agreement. All prior sales of securities of the
Company were either registered under the 1933 Act and applicable state securities laws or exempt from such registration, and no security holder has any rescission rights with respect thereto. 

2.4  Issuance of Securities; Reservation. The issuance, sale and delivery of the Securities have been duly authorized by all requisite
corporate action by the Company and, upon issuance in accordance with the Offering Documents, shall be (a) duly authorized, validly issued, fully paid and non-assessable, 

5

 

(b) free from all taxes, liens and charges with respect to the issue thereof, and (c) entitled to the rights and preferences set forth in the Series B Designation and the
Preferred Warrants. At least 12,850,000 shares of Common Stock have been duly authorized and reserved for issuance upon conversion of the Preferred Shares and exercise of the Preferred Warrants. In
the event the number of shares of Common Stock issuable upon conversion or exercise of the Preferred Shares or the Preferred Warrants exceed the number of authorized shares of Common Stock as a result
of the conversion price or exercise price reset terms of the Preferred Shares or Preferred Warrants, the Company shall use its best efforts to seek stockholder approval of and file a
Certificate of Amendment to increase the authorized number of shares of Common Stock accordingly. Upon conversion of the Preferred Shares or exercise of the Preferred Warrants in accordance with the
Series B Designation or the Preferred Warrants, as the case may be, the Conversion Shares and the Warrant Shares will be duly authorized, validly issued, fully paid and nonassessable and free
from all taxes, liens and charges with respect to the issue thereof, with the holders being entitled to all rights accorded to a holder of Common Stock. Assuming (i) the accuracy of the
information provided by the respective Subscribers in the Subscription Agreement and Questionnaire, (ii) that all of the offerees and Subscribers are "accredited investors" as such term is
defined in Rule 501 of Regulation D, and (iii) that the Placement Agent has not engaged, nor will engage, in connection with the Offering, in any form of general solicitation or
general advertising within the meaning of Rule 502(c) of Regulation D, the offer and sale of the Preferred Shares and the Preferred Warrants pursuant to the terms of this Subscription
Agreement are and will be exempt from the registration requirements of the 1933 Act and the rules and regulations promulgated thereunder. The Company is not disqualified from the exemption under
Regulation D by virtue of the disqualification contained in Rule 507 thereof or otherwise. 

2.5  No Conflicts. Except as set forth in Schedule 2.5, the execution, delivery
and performance of the Offering Documents by the Company, the consummation by the Company of the transactions contemplated by the Offering Documents, and the performance by the Company of its
obligations under the Series B Designation and the Preferred Warrants, including without limitation, the reservation for issuance and the issuance of the Securities, will not (a) result
in a violation of the Company's Certificate of Incorporation, any certificate of designations, preferences and rights of any outstanding series of preferred stock of the Company, or the Company's
bylaws, (b) 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 material agreement, lease, license or instrument (including without limitation, any document filed as an exhibit to any of the Company's SEC Documents (as defined
below)), or (c) result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws and regulations and the rules and regulations of The
Nasdaq National Market, Inc.) applicable to the Company or any of its Subsidiaries or by which any property or asset of the Company or any of its Subsidiaries is bound or affected. 

2.6  Consents. Except as contemplated by the Agency Agreement, and except for the filing of the Registration Statement (as defined in the
Registration Rights Agreement) with the SEC, the Company is not required to obtain any consent, authorization or order of, or make any filing or registration with, any court or governmental agency or
any regulatory or self-regulatory agency in order for it to execute, deliver or perform any of its obligations under or contemplated by the Offering Documents. Except as otherwise provided
in the Offering Documents, all consents, authorizations, orders, filings and registrations which the Company is required to obtain pursuant to the preceding sentence have been obtained or effected on
or prior to the date hereof. The Company and its Subsidiaries are unaware of any facts or circumstances which might prevent the Company from obtaining or effecting any of the foregoing. 

2.7  No General Solicitation. None of the Company, its Subsidiaries, any of their affiliates, and any person acting on their behalf, has
engaged in any form of general solicitation or general advertising 

6

 

(within the meaning of Regulation D under the 1933 Act) in connection with the offer or sale of the Securities. 

2.8  No Integrated Offering. None of the Company, its Subsidiaries, any of their affiliates, and any person acting on their behalf has,
directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would require registration of any of the Securities under the
1933 Act or cause this offering of the Securities to be integrated with prior offerings by the Company for purposes of the 1933 Act or any applicable stockholder approval provisions, including without
limitation, under the rules and regulations of any exchange or automated
quotation system on which any of the securities of the Company are listed or designated. None of the Company, its Subsidiaries, their affiliates and any person acting on their behalf will take any
action or steps referred to in the preceding sentence that would require registration of any of the Securities under the 1933 Act or cause the offering of the Securities to be integrated with other
offerings. 

2.9  Application of Takeover Protections; Rights Agreement. The Company and its board of directors have taken all necessary action, if
any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover
provision under the Certificate of Incorporation or the laws of the state of its incorporation which is or could become applicable to the Subscriber as a result of the transactions contemplated by
this Subscription Agreement, including without limitation, the Company's issuance of the Securities and the Subscriber's ownership of the Securities. The Company has not adopted a shareholder rights
plan or similar arrangement relating to accumulations of beneficial ownership of Common Stock or a change in control of the Company. 

2.10  SEC Documents; Financial Statements. Since February 29, 2000, the Company has filed all reports, schedules, forms,
statements and other documents required to be filed by it with the SEC pursuant to the reporting requirements of the Securities Exchange Act of 1934, as amended (the "1934
Act") (all of the foregoing filed prior to the date hereof and all exhibits included therein and financial statements and schedules thereto and documents incorporated by
reference therein being hereinafter referred to as the "SEC Documents"). The Company has made available to the Subscriber or its representatives copies
of the SEC Documents. As of their respective dates, the SEC Documents complied in all material respects with the requirements of the 1934 Act and the rules and regulations of the SEC promulgated
thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed with the SEC, contained any untrue statement of a material fact or omitted 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. As of their respective dates, the
financial statements of the Company included in the SEC Documents complied as to form in all material respects with applicable accounting requirements and the published rules and regulations of the
SEC with respect thereto. Such financial statements have been prepared in accordance with generally accepted accounting principles, consistently applied, during the periods involved (except
(a) as may be otherwise indicated in such financial statements or the notes thereto, or (b) in the case of unaudited interim statements, to the extent they may exclude footnotes or may
be condensed or summary statements) and fairly present in all material respects the financial position of the Company as of the dates thereof and the results of its operations and cash flows for the
periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments that will not be material). As of the date hereof, the Company meets the requirements
for the use of Form S-3 for registration of the resale of the Common Stock issuable upon exercise of the Preferred Warrant and upon conversion of the Preferred Shares. 

2.11  Conduct of Business; Regulatory Permits. Except as set forth on  Schedule 2.11, since February 29, 2000 the Company has not (a)
 incurred any debts, obligations or liabilities, absolute, accrued,
contingent
or otherwise, whether due or to become due, except current liabilities incurred in the usual and ordinary course of business, having a Material Adverse Effect, (b) made or suffered any 

7

 

changes in its contingent obligations by way of guaranty, endorsement (other than the endorsement of checks for deposit in the usual and ordinary course of business), indemnity, warranty or otherwise,
(c) discharged or satisfied any liens other than those securing, or paid any obligation or liability other than, current liabilities shown on the balance sheet dated as at February 29,
2000 and forming part of the SEC Documents, and current liabilities incurred since the February 29, 2000, in each case in the usual and ordinary course of business, (d) mortgaged,
pledged or subjected to lien any of its assets, tangible or intangible, (e) sold, transferred or leased any of its assets except in the usual and ordinary course of business,
(f) cancelled or compromised any debt or claim, or waived or released any right, of material value, (g) suffered any physical damage, destruction or loss (whether or not covered by
insurance) adversely affecting the properties, business or prospects of the Company, (h) entered into any transaction other than in the usual and ordinary course of business except for this
Subscription Agreement and the related agreements referred to herein, (i) encountered any labor difficulties or labor union organizing activities, (j) made or granted any wage or salary
increase or entered into any employment agreement, (k) issued or sold any shares of capital stock or other securities or granted any options with respect thereto, or modified any equity
security of the Company, (l) declared or paid any dividends on or made any other distributions with respect to, or purchased or redeemed, any of its outstanding equity securities,
(m) suffered or experienced any change in, or condition affecting, its condition (financial or otherwise), properties, assets, liabilities, business operations, results of operations or
prospects other than changes, events or conditions in the usual and ordinary course of its business, having (either by itself or in conjunction with all such other changes, events and conditions) a
Material Adverse Effect, (n) made any change in the accounting principles, methods or practices followed by it or depreciation or amortization policies or rates theretofore adopted, or
(o) entered into any agreement, or otherwise obligated itself, to do any of the foregoing. Neither the Company nor any of its Subsidiaries is in violation of any judgment, decree or order or
any statute, ordinance, rule or regulation applicable to the Company or its Subsidiaries, and neither the Company nor any of its Subsidiaries will conduct its business in violation of any of the
foregoing, except for possible violations which would not, individually or in the aggregate, have a Material Adverse Effect. The Company's Common Stock has been designated for quotation or listed on
the Nasdaq National Market, trading in the Common Stock has not been suspended by the SEC or the Nasdaq National Market and the Company has received no communication, written or oral, from the SEC or
the Nasdaq National Market regarding the suspension or delisting of the Common Stock from the Nasdaq National Market. Except as disclosed on  Schedule 2.11, the Company is not in violation of the
listing requirements of the Nasdaq National Market as in effect on the date hereof and has
no actual knowledge of any facts which would reasonably lead to delisting or suspension of the Common Stock by the Nasdaq National Market in the foreseeable future. The Company and its Subsidiaries
possess all certificates, authorizations and permits issued by the appropriate federal, state or foreign regulatory authorities necessary to conduct their respective businesses, except where the
failure to possess such certificates, authorizations or permits would not have, individually or in the aggregate, a Material Adverse Effect, and neither the Company nor any such Subsidiary has
received any notice of proceedings relating to the revocation or modification of any such certificate, authorization or permit. 

2.12  Foreign Corrupt Practices. Neither the Company, nor any of its Subsidiaries, nor any director, officer, agent, employee or other
person acting on behalf of the Company or any of its Subsidiaries has, in the course of its actions for, or on behalf of, the Company, (a) used any corporate funds for any unlawful
contribution, gift, entertainment or other unlawful expenses relating to political activity; made any direct or indirect unlawful payment to any foreign or domestic government official or employee
from corporate funds, (b) violated or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended, or (c) made any unlawful bribe, rebate, payoff,
influence payment, kickback or other unlawful payment to any foreign or domestic government official or employee. 

2.13  Absence of Litigation. Except as set forth in Schedule 2.13, there is no
action, suit, proceeding, inquiry or investigation before or by the Nasdaq National Market, any court, public board, government 

8

 

agency, self-regulatory organization or body, or arbitrator pending or, to the knowledge of the Company, threatened against the Company, the Common Stock or any of the Company's
Subsidiaries or any of the Company's or the Company's Subsidiaries' officers or directors in their capacities as such. 

2.14  Tax Status. The Company and each of its Subsidiaries has made or filed all federal and state income and all other tax returns,
reports and declarations required by any jurisdiction to which it is subject, and has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to
be due on such returns, reports and declarations or otherwise due and payable, except those being contested in good faith and has set aside on its books reserves in accordance with GAAP reasonably
adequate for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid taxes in any material amount claimed to be due by
the taxing authority of any jurisdiction, and the officers of the Company know of no basis for any such claim. 

2.15  Securities Law Compliance. The offer, offer for sale, and sale of the Preferred Units has not been registered with the SEC. The
Preferred Units are to be offered, offered for sale and sold in reliance upon the exemptions from the registration requirements of Section 5 of the 1933 Act. The Company will conduct the
Offering in compliance with the requirements of Regulation D under the 1933 Act, and the Company will file all appropriate notices of offering with the SEC. 

2.16  Title. Except as set forth in or contemplated by Schedule 2.16, the Company
has good and marketable title to all material properties and tangible assets owned by it, free and clear of all liens, charges, encumbrances or restrictions, except as such as are not significant or
important in relation to the Company's business; all of the material leases and subleases under which the Company is the lessor or sublessor of properties or assets or under which the Company holds
properties or assets as lessee or sublessee are in full force and effect, and the Company is not in default in any material respect with
respect to any of the terms or provisions of any of such leases or subleases, and no material claim has been asserted by anyone adverse to rights of the Company as lessor, sublessor, lessee or
sublessee under any of the leases or subleases mentioned above, or affecting or questioning the right of the Company to continued possession of the leased or subleased premises or assets under any
such lease or sublease. The Company owns, leases or licenses all such properties as are necessary to its operations as described in the Offering Documents. 

2.17  Intellectual Property Rights. To the Company's knowledge after due investigation, the Company and its Subsidiaries own or possess
adequate rights or licenses to use all trademarks, trade names, service marks, service mark registrations, service names, patents, patent rights, copyrights, inventions, licenses, approvals,
governmental authorizations, trade secrets and rights necessary to conduct their respective businesses as now conducted. Except as set forth on  Schedule 2.17, to the Company's knowledge after due
investigation, none of the Company's trademarks, trade names, service marks, service mark
registrations, service names, patents, patent rights, copyrights, inventions, licenses, approvals, government authorizations, trade secrets or other intellectual property rights have expired or
terminated, or are expected to expire or terminate within two years from the date of this Subscription Agreement, except where such expiration or termination would not have either individually or in
the aggregate a Material Adverse Effect. After due investigation, the Company and its Subsidiaries do not have any knowledge of any infringement by the Company or its Subsidiaries of trademarks, trade
name rights, patents, patent rights, copyrights, inventions, licenses, service names, service marks, service mark registrations, trade secrets or other similar rights of others, or of any such
development of similar or identical trade secrets or technical information by others and, except as set forth on Schedule 2.17, no claim, action
or proceeding has been made or brought against, or to the Company's knowledge, has been threatened against, the Company or its Subsidiaries regarding trademarks, trade name rights, patents, patent
rights, inventions, copyrights, licenses, service names, service marks, service mark registrations, trade secrets or other infringement, except where such infringement, claim, action or proceeding
would not reasonably be expected to have either individually or in the aggregate a Material 

9

 

Adverse Effect. Except as set forth on Schedule 2.17, the Company and its Subsidiaries are unaware, after due investigation, of any facts or
circumstances which might give rise to any of the foregoing. The Company and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of all of their
intellectual properties except where the failure to do so would not have either individually or in the aggregate a Material Adverse Effect. 

2.18  Registration Rights. Except with respect to holders of the Preferred Units and the Preferred Warrant, and except as set forth in  Schedule 2.18, no person has any right to cause the Company to effect the registration under the 1933 Act of any securities of the Company. 

2.19  Brokers. Neither the Company nor any of its officers, directors, employees or stockholders has employed any broker or finder in
connection with the transactions contemplated by the Agency Agreement other than the Placement Agent. 

2.20  Right of First Refusal. No person, firm or other business entity is a party to any agreement, contract or understanding, written or
oral entitling such party to a right of first refusal with respect to offerings of securities by the Company. 

2.21  Interim Financial Statements. Attached hereto as Schedule 2.21 are complete
and accurate copies of the Company's unaudited, consolidated financial statements as of and for the three (3) month period and as of and for the year ended February 28, 2001 (the
"Financial Statements"). To the best of the Company's knowledge as of the date hereof, and except as set forth in  Schedule 2.21 or in any notes to the
Financial Statements, the Financial Statements (including any notes thereto) were prepared in accordance
with generally accepted accounting principles applied on a consistent basis throughout the period indicated and prior periods and present fairly and accurately the consolidated financial position,
results of operations and cash flows of the Company as of and for the three (3) month period and as of and for the year ended February 28, 2001 (in each case, subject to normal
year-end audit adjustments). 

2.22  Disclosure. None of the representations and warranties of the Company appearing in this Subscription Agreement or any information
appearing in any Exhibit or Schedule hereto or in any of the Offering Documents, when considered together as a whole, contains, or on any Closing Date will contain, any untrue statement of a material
fact or omits, or on any Closing Date will omit, to state any material fact required to be stated herein or therein in order for the statements herein or therein, in light of the circumstances under
which they were made, not to be misleading. 

2.23  Certain Officers. As of the date hereof, Peter Jackson, Frost Prioleau, James Brentano, David Dunlap, Paul Martinelli and Norman
Pensky (the "Key Executives") are employed by the Company on a full-time basis, and, to the Company's knowledge, none of the Key Executives
is planning to cease being employed by the Company on a full-time basis in their current capacity and the Company is not aware of any circumstances related to the employment of the Key
Executives, apart from circumstances related to the operations of the Company as a whole, that could result in cessation of full-time employment of any of the Key Executives in their
current capacities. 

III. TERMS OF SUBSCRIPTION  

3.1  Closing and Termination of Offering. Provided the Minimum Offering shall have been subscribed for, funds representing the sale
thereof shall have cleared, all conditions to closing set forth in Section 3 of the Agency Agreement and  Articles V and VI hereof have been
satisfied or waived and neither the Company nor the Placement Agent have notified the other that they do not
intend to effect the closing of the Minimum Offering, a closing (the "Initial Preferred Closing") shall take place at the offices of counsel to the
Placement Agent, Paul, Hastings, Janofsky & Walker LLP, 345 California Street, 29th Floor, San Francisco, California, within three (3) business days thereafter (but
in no event later than five days following the Preferred Termination Date), which closing date may be accelerated 

10

 

or adjourned by agreement between the Company and the Placement Agent. At the Initial Preferred Closing, payment for the Preferred Units issued and sold by the Company shall be made against delivery
of the Preferred Shares and Preferred Warrants comprising such Preferred Units. The Company and the Placement Agent may consummate subsequent closings of the Offering, upon mutual agreement only, each
of which shall be subject to satisfaction or waiver of the conditions to closing set forth in Articles V and VI hereof and in  Section 3 of the
Agency Agreement, and each of which shall be deemed a "Preferred Closing"
hereunder. The date of the last closing of the Offering is hereinafter referred to as the "Final Closing" and the date of any Preferred Closing
hereunder is hereinafter referred to as a "Closing Date". The offering period for the Offering (the "Preferred Offering
Period") shall commence on the day the Transaction Documents (as defined in the Agency Agreement) relating thereto are first made available to
[                  ] by the Company for delivery in connection with the offering for sale of the Preferred Units and shall continue until the earlier to occur
of:
(i) the sale of the Maximum Offering; or (ii) 5:00 p.m. (New York time), April 26, 2001. In any event, however, the Placement Agent shall use its reasonable best
efforts to close at least $3,000,000 of gross proceeds of the Offering by 11:59 p.m. (New York time) on April 3, 2001. If the Minimum Offering is not sold by 11:59 p.m.
(New York time) on April 3, 2001, the Offering will be terminated and all funds received from Subscribers will be returned, without interest and without any deduction. The day that the
Preferred Offering Period terminates is hereinafter referred to as the "Preferred Termination Date." The Preferred Termination Date may be extended for
up to thirty (30) days by mutual agreement of the Placement Agent and the Company. 

3.2  Expenses; Fees. Simultaneously with payment for and delivery of the Preferred Units at each Preferred Closing, the Company shall:
(A) pay to the Placement Agent a cash fee equal to 6% of the gross proceeds of the Preferred Units sold (the "Cash Fee"); (B) reimburse
the Placement Agent for its actual out-of-pocket expenses incurred in connection with the Offering, including, without limitation, the reasonable fees and expenses of its
counsel (Paul, Hastings, Janofsky & Walker LLP), including, without limitation, due diligence investigation expenses, travel and mailing expenses, up to a maximum of $60,000, which amount may
be increased with the prior written consent of the Company, and (C) pay all expenses in connection with the qualification of the Securities under the blue sky laws of the states which the
Placement Agent shall designate, including legal fees, filing fees and disbursements of Placement Agent's counsel in connection with such blue sky matters. 

3.3  Escrow. Pending the sale of the Preferred Units, all funds paid hereunder shall be deposited by the Company in escrow with American
Stock Transfer & Trust Company. If the Company shall not have obtained subscriptions (including this subscription) for purchases of at least six (6) Preferred Units ($3,000,000) on or
before the Preferred Termination Date, then this subscription shall be void and all funds paid hereunder by the Subscriber, without interest, shall be promptly returned to the Subscriber, subject to  Section
 3.5 hereof. If at least six (6) Preferred Units ($3,000,000) are sold on or prior to the Preferred Termination Date, then all
subscription proceeds shall be paid over to the Company within three (3) business days thereafter at an initial closing. In such event, placements of additional Preferred Units may continue
until the Preferred Termination Date, with subsequent releases of funds to be at the mutual consent of the Company and the Placement Agent. 

3.4  Certificates. The Subscriber hereby authorizes and directs the Company, upon each closing in the Offering, to deliver certificates
representing the securities to be issued to such Subscriber pursuant to this Subscription Agreement either (a) to the Subscriber's address indicated in the Questionnaire, or (b) directly
to the Subscriber's account maintained with the Placement Agent, if any. 

3.5  Return of Funds. The Subscriber hereby authorizes and directs the Company to return any funds for unaccepted subscriptions to the
same account from which the funds were drawn, including any customer account maintained with the Placement Agent. 

11

 

3.6  Irrevocable Proxy. The Subscriber hereby grants to the Placement Agent an irrevocable proxy to vote such Subscriber's Preferred
Shares in the election of the Company's Board of Directors, and otherwise authorizes the Placement Agent to take all action the Placement Agent may deem necessary in order to elect the director (the
"Series B Director") which the holders of the Preferred Shares are entitled to elect under  Section 1(c) of the Series B Designation and to
designate and elect such director's replacement, and the Subscriber agrees that the
Placement Agent may choose, in its sole discretion, the person to be so elected or designated. 

IV. COVENANTS  

4.1  Registration Rights Agreement. The Company shall provide for the registration of the Conversion Shares and the Warrant Shares for
resale under the 1933 Act, as provided herein and in the Registration Rights Agreement. The Company and the Subscriber agree to the terms and provisions of
Registration Rights Agreement attached hereto as Exhibit C, which terms and provisions are incorporated herein by reference in their entirety and
made a part hereof. 

4.2  Best Efforts. Each party shall use its best efforts timely to satisfy each of the conditions to be satisfied by it as provided in  Articles V and VI of this Subscription Agreement. 

4.3  Form D and Blue Sky. The Company shall file a Form D with respect to the Preferred Shares and Preferred
Warrants as required under Regulation D under the 1933 Act and, upon request, provide a copy thereof to the Subscriber promptly after such filing. The Company shall, on or before the Closing,
take such action as the Company shall reasonably determine is necessary in order to obtain an exemption for or to qualify the Preferred Shares and the Preferred Warrants for sale to the Subscriber
pursuant to this Subscription Agreement under applicable securities or "Blue Sky" laws of the states of the United States, and shall provide evidence of any such action so taken to the Subscriber on
or prior to the Closing. The Company shall make all filings and reports relating to the offer and sale of the Securities required under applicable securities or "Blue Sky" laws of the states of the
United States following the Closing. 

4.4  No Redemption or Repurchase. Unless approved by (A) the vote or written consent of the holders of a majority of the Preferred
Shares (treating for this purpose, the holders of Conversion Shares issued upon conversion of the Preferred Shares as holders of the Preferred shares) or (B) the Series B Director and
except as otherwise provided in the Transaction Documents, the Company shall not purchase or redeem any capital stock of the Company or any Subsidiary or any indebtedness of the Company or any
Subsidiary convertible into or exchangeable for its capital stock or any option, warrant or right to purchase any such capital stock or convertible security. Notwithstanding the foregoing, the Company
may repurchase from its employees shares of Common Stock purchased by its employees pursuant to early exercises of stock options or restricted stock purchases if such employees terminated their
employment with the Company prior to the vesting of ownership of such shares and if the Company pays no more per share of Common Stock than the purchase price per share paid by such employees. 

4.5  Use of Proceeds. The Company shall only use the proceeds of the sale of the Preferred Shares and Preferred Warrants for the purpose
set forth on Schedule 4.5 hereto. 

4.6 Conversion and Warrant Exercise Limits.  

    (a) If
the number of Issuable Shares issuable upon conversion of all the Preferred Shares and exercise of all the Preferred Warrants sold in the Offering requires the
Company to obtain the Required Approval (defined below), then until such Required Approval is obtained by the Company, the Subscriber agrees to convert Preferred Shares and exercise Preferred Warrants
for only that aggregate number of Issuable Shares that would, together with all conversions of Preferred Shares and exercises of Preferred Warrants by direct and indirect transferees of the 

12

 

Subscriber, result in an issuance of no more Issuable Shares than the Per Subscriber Limit (defined below). 

    (b) The
"Per Subscriber Limit" means that number of Issuable Shares equal to 5,646,355 multiplied by a fraction, the
numerator of which is the sum of (A) the number of Issuable Shares issuable upon conversion of all Preferred Stock held by the Subscriber and any direct or indirect transferee of the Subscriber
plus (B) the number of Issuable Shares issuable upon exercise of all Preferred Warrants held by the Subscriber and any direct or indirect transferee of the Subscriber, and the denominator of
which is the sum of (A) the number of Issuable Shares issuable upon conversion of all Preferred Stock issued in the Offering plus (B) the number of Issuable Shares issuable upon exercise
of all Preferred Warrants issued in the Offering. 

    (c) The
"Required Approval" means either (i) approval of the conversion and exercise, respectively, of all
Preferred Shares and Warrants issued to the Subscribers by the holders of a majority of the issued and outstanding Common Stock, if such approval is required by NASD Marketplace
Rule 4460(i)(1)(D)(ii) or (ii) obtaining an exception from Nasdaq under NASD Marketplace Rule 4460(i)(2) permitting the Company to issue the Units without obtaining the
shareholder approval required under clause (i) of this sentence. 

4.7  Penalty for Failure to Obtain Required Approval. If, the Required Approval is not obtained by the Company within 6 months
after the Final Closing (the "Approval Deadline") then upon the delivery of written notice from the Placement Agent to the Company, the Company shall be
required to repurchase the number of Preferred Shares set forth in such notice at a price per Preferred Share equal to the greater of (x) double the amount of the Conversion Price or
(y) the difference between (A) the Conversion Price and (B) the average closing bid price on Nasdaq for the Common Stock for the 10 trading days preceding the Approval
Deadline. 

V. CONDITIONS TO CLOSING IN FAVOR OF THE COMPANY  

The
obligation of the Company hereunder to issue and sell Preferred Units to the Subscriber at the Closing is subject to the satisfaction, at or before the Closing, of each of the following
conditions, provided that these conditions are for the Company's sole benefit and may be waived by the Company at any time in its sole discretion by providing the Subscriber with prior written notice
thereof: 

5.1  Offering Documents. The Subscriber shall have executed a Questionnaire, a Subscription Agreement, the Registration Rights Agreement
and a Lock-Up Agreement and delivered the same to the Company. 

5.2  Purchase Price. The Subscriber shall have delivered to the Escrow Agent the purchase price for the Preferred Units being purchased
by the Subscriber at the Closing in the manner set forth in Section 1.1. 

5.3  Representations and Warranties. The representations and warranties of the Subscriber shall be true and correct in all material
respects as of the date when made and as of the Closing as though made at that time, and the Subscriber shall have performed, satisfied and complied in all material respects with the covenants,
agreements and conditions required by this Subscription Agreement to be performed, satisfied or complied with by the Subscriber at or prior to the Closing. 

5.4  Series B Designation. The Secretary of State of the State of Delaware shall have accepted for filing the Series B
Designation. 

VI. CONDITIONS TO CLOSING IN FAVOR OF THE SUBSCRIBER  

The
obligation of the Subscriber hereunder to purchase the Preferred Units is subject to the satisfaction, at or before the Closing, of each of the following conditions, provided that these conditions 

13

 

are for the Subscriber's sole benefit and may be waived by the Subscriber at any time in its sole discretion by providing the Company with prior written notice thereof: 

6.1  Offering Documents. The Company shall have executed and delivered to the Subscriber each of the Offering Documents to which its
signature is required. 

6.2  Lock-Up Agreements. The Company shall have delivered to the Placement Agent a Lock-Up Agreement executed by
Frost Prioleau, the Jackson Lock-Up executed by Peter Jackson and the Other Lock-Ups executed by the individuals specified in Section 1.10(iii) hereof. 

6.3  Legal Opinion. The Subscriber shall have received the opinion of the Company's counsel dated as of the Closing, in substantially the
form provided for in Section 3(c)(v) of the Agency Agreement. 

6.4  Representations and Warranties. The representations and warranties of the Company shall be true and correct as of the date when made
and as of the Closing as though made at that time (except for representations and warranties that reference a specific date which shall have been true and correct in all material respects as of such
date), and the Company shall have performed, satisfied and complied in all respects with the covenants, agreements and conditions required by the Transaction Documents to be performed, satisfied or
complied with by the Company at or prior to the Closing, except where the failure of such representations and warranties to be true and correct as stated above and except for such nonperformance,
failure to satisfy or comply as would not, individually or in the aggregate, have a Material Adverse Effect. 

6.5  Series B Designation. The Series B Designation shall have been accepted for filing by the Secretary of State of the
State of Delaware, and a certified copy thereof shall have been delivered to the Placement Agent. 

6.6  Due Diligence. The Placement Agent shall have completed its due diligence investigation of the Company, including without
limitation, its review of the Company's financial statements, projections, business prospects, capital structure, and contractual arrangements, to the Placement Agent's reasonable satisfaction. 

6.7  Closing Documents. At the Closing, the Company shall have delivered to the Placement Agent the following: (A) a certificate
of the Chief Executive Officer stating that (I) the condition set forth in Section 6.4 has been satisfied, (II) except as set forth
in the any Schedule or Exhibit to this Subscription Agreement or the Agency Agreement, since November 30, 2000, there has been no event, condition or circumstance that has had or could
reasonably be expected to have a Material Adverse Effect, and (III) the Company has complied with its covenants and agreements set forth in the Transaction Documents, and (B) a
certificate of the Secretary of the Company containing: (I) true and complete
copies, as of the Closing Date, of the Certificate of Incorporation and by-laws of the Company and of the certificates of designations of all series of preferred stock of the Company,
(II) true and complete copies of the resolutions of the Board of Directors of the Company approving the Transaction Documents and all documents and matters incident thereto, and (III) a
certification of authenticity of the signatures of the officers of the Company who have executed and delivered the documentation for this Offering. 

14

  

6.8  Conditions of Agency Agreement. All of the conditions to closing set forth in  Section 3 of the Agency Agreement shall have been satisfied.

6.9  Other Matters. All opinions, certificates and documents and all proceedings related to this Offering shall be in form and content
satisfactory to the Placement Agent and its counsel. 

VII.  RIGHTS OF TERMINATION  

7.1  Termination by Subscriber or Company. This Subscription Agreement may be terminated at any time prior to the Closing: (a) by
mutual written consent of the parties hereto; (b) by either the Company or the Placement Agent upon written notice to the other party if the Closing shall not have been consummated by
11:59 p.m. on April 3, 2001, unless such failure of consummation shall be due to the failure of the party seeking to terminate to perform or observe in all material respects the
covenants and agreements hereof to be performed or observed by such party; or (c) by the Company or the Subscriber upon written notice to the other party if any court or governmental authority
of competent jurisdiction shall have issued a final, non-appealable order restraining, enjoining or otherwise prohibiting the consummation of the transactions contemplated by this
Subscription Agreement. Termination of this Subscription Agreement under this Section 7.1 shall result in this Subscription Agreement becoming
void and of no further force and effect, except that a termination shall not release, or be construed as so releasing, any party hereto from any liability or damage to the other party hereto arising
out of the breaching party's willful and material breach of the warranties and representations made by it, or willful and material failure in performance of any of its covenants, agreements, duties or
obligations provided hereunder, and the obligations under Section 8.8 shall survive such termination. 

7.2  Termination by the Placement Agent. In the event the Placement Agent decides for any reason prior to the Closing not to proceed with
the Offering, upon notice to the Company and the Subscriber, this Subscription Agreement shall be terminated and become void and of no further force and effect, and none of the Company, the Placement
Agent, or the Subscriber shall have any further obligations pursuant to this Subscription Agreement, including without limitation, the obligation to consummate the Offering, provided, however, that
the obligations under Section 8.8 shall survive such termination. 

VIII.  MISCELLANEOUS  

8.1  Notice. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this
Subscription Agreement must be in writing and will be deemed to have been delivered: (a) upon receipt, when delivered personally, (b) upon receipt, when sent by facsimile (provided
confirmation of transmission is mechanically or electronically generated and kept on file by the sending party), or (c) one (1) business day after deposit with an overnight courier
service, in each case properly addressed to the party to receive the same. The addresses and facsimile numbers for such communications shall be: 

If
to the Company: 

Intraware, Inc.

25 Orinda Way

Orinda, CA 94563

Telephone: (925) 253-4500

Facsimile: (925) 253-4541

Attention: General Counsel 

With
a copy to:

Wilson Sonsini Goodrich & Rosati, Professional Corporation

650 Page Mill Road

15

 

Palo Alto, CA 94304

Telephone: (650) 493-9300

Facsimile: (650) 493-6811

Attention: Adam R. Dolinko, Esq. 

If
to the Subscriber, to its address and facsimile number set forth at the end of this Subscription Agreement, or to such other address and/or facsimile number and/or to the attention of such other
person as specified by written notice given to the Company five (5) days prior to the effectiveness of such change. Written confirmation of receipt (a) given by the recipient of such
notice, consent, waiver or other communication, (b) mechanically or electronically generated by the sender's facsimile machine containing the time, date, recipient facsimile number and an image
of the first page of such transmission, or (c) provided by an overnight courier service shall be rebuttable evidence of personal service, receipt by facsimile or receipt from an overnight
courier service in accordance with clause (a), (b) or (c) above, respectively. 

8.2  Entire Agreement; Amendment. This Subscription Agreement supersedes all other prior oral or written agreements between the
Subscriber, the Company, their affiliates and persons acting on their behalf with respect to the matters discussed herein, and this Subscription Agreement and the
instruments referenced herein contain the entire understanding of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither
the Company nor the Subscriber makes any representation, warranty, covenant or undertaking with respect to such matters. No provision of this Subscription Agreement may be amended or waived other than
by an instrument in writing signed by the Company and the holders of at least a majority of the Preferred Shares then outstanding (or if prior to the Closing, the Subscribers purchasing at least a
majority of the Preferred Shares to be purchased at the Closing). No such amendment shall be effective to the extent that it applies to less than all of the holders of the Preferred Shares then
outstanding. 

8.3  Severability. If any provision of this Subscription Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity
or unenforceability shall not affect the validity or enforceability of the remainder of this Subscription Agreement in that jurisdiction or the validity or enforceability of any provision of this
Subscription Agreement in any other jurisdiction. 

8.4  Governing Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation of this
Subscription Agreement shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New
York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York. Each party hereby irrevocably submits to the
non-exclusive jurisdiction of the state and federal courts sitting in the Southern District of New York, for the adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the
jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably
waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this
Subscription Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any manner permitted by law. Each party hereby irrevocably waives any right it may have, and agrees not to request, a jury trial for the adjudication of any dispute hereunder or in
connection with or arising out of this Subscription Agreement or any transaction contemplated hereby. 

8.5  Headings. The headings of this Subscription Agreement are for convenience of reference and shall not form part of, or affect the
interpretation of, this Subscription Agreement. 

16

 

8.6  Successors And Assigns. This Subscription Agreement shall be binding upon and inure to the benefit of the parties and their
respective successors and assigns, including any purchasers of the Preferred Shares and the Preferred Warrants. The Company shall not assign this Subscription Agreement or any rights or obligations
hereunder without the prior written consent of the holders of at least a majority the Preferred Shares then outstanding, except by merger or consolidation. The Subscriber may assign some or all of its
rights hereunder without the consent of the Company, provided, however, that any such assignment shall not release the Subscriber from its obligations
hereunder unless such obligations are assumed by such assignee and the Company has consented to such assignment and assumption, which consent shall not be unreasonably withheld. 

8.7  No Third Party Beneficiaries. This Subscription Agreement is intended for the benefit of the parties hereto and their respective
permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person. 

8.8  Survival. The representations and warranties of the Company and the Subscriber contained in Articles I and
II and the agreements set forth this Article VIII shall survive the Closing for a period of two years. 

8.9  Further Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall
execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the intent and accomplish the purposes of this
Subscription Agreement and the consummation of the transactions contemplated hereby. 

8.10  No Strict Construction. The language used in this Subscription Agreement will be deemed to be the language chosen by the parties to
express their mutual intent, and no rules of strict construction will be applied against any party. 

8.11  Legal Representation. The Subscriber acknowledges that: (a) it has read this Subscription Agreement and the exhibits hereto;
(b) it understands that the Company has been represented in the preparation, negotiation, and execution of this Subscription Agreement by Wilson Sonsini Goodrich & Rosati, Professional
Corporation, counsel to the Company; (c) it understands that the Placement Agent has been represented by Paul, Hastings, Janofsky & Walker LLP, counsel to the Placement Agent, and that
such counsel has not represented and is not representing the Subscriber; (d) it has either been represented in the preparation, negotiation, and execution of this Subscription Agreement by
legal counsel of its own choice, or has chosen to forego such representation by legal counsel after being advised to seek such legal representation; and (e) it understands the terms and
consequences of this Subscription Agreement and is fully aware of its legal and binding effect. 

8.12  Expenses of Enforcement. The Company shall pay all fees and expenses (including reasonable fees and expenses of counsel and other
professionals) incurred by the Subscriber or any successor holder of Preferred Shares or Preferred Warrants or Conversion Shares or Warrant Shares in enforcing any of its rights and remedies under
this Subscription Agreement, the Series B Designation, the Preferred Warrants or the Registration Rights Agreement. 

8.13  Confidentiality. The Subscriber agrees that, at all times during the period ending five (5) business days after the filing
by the Company with the SEC of its next Annual Report on Form 10-K following
the date hereof, it shall keep confidential and not divulge, furnish or make accessible to anyone, the confidential information concerning or relating to the business or financial affairs of the
Company contained in the Offering Documents to which it has become privy by reason of this Subscription Agreement. 

8.14  Counterparts. This Subscription Agreement may be executed in two or more identical counterparts, all of which shall be considered
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party; provided that a facsimile signature shall be considered due
execution and shall be binding upon the signatory thereto with the same force and effect as if the signature were an original, not a facsimile signature. 

17

IN WITNESS WHEREOF, the parties have executed this Subscription Agreement as of the date first written above. 

	SUBSCRIBER**:	 	CO-SUBSCRIBER**:
	

 Signature of Subscriber	
 	

 Signature of Co-Subscriber
	

 Name of Subscriber [please print]	
 	

 Name of Co-Subscriber [please print]
	

 Address of Subscriber	
 	

 Address of Co-Subscriber
	

 Social Security or Taxpayer

Identification Number of Subscriber	
 	

 Social Security or Taxpayer Identification

Number of Co-Subscriber
	

 Name of Holder(s) as it should appear on the security certificates* [please print]

* Please provide the exact names that you wish to see on the certificates  

	(1)
	 For individuals, print full name of subscriber.

 
	(2)
	 For joint, print full name of subscriber and all co-subscribers.

 
	(3)
	 For corporations, partnerships, LLC, print full name of entity, including "&", "Co.", "Inc.", "etc", "LLC", "LP", etc.

 
	(4)
	 For Trusts, print trust name (please contact your trustee for the exact name that should appear on the certificates.)

 
	(5)
	 For IRA account maintained at [                  ], print "Wexford Clearing
Corp as C/F FBO [client name]".  

Subscriber's Account Number at [                  ], if applicable:             
             

Dollar
Amount of Preferred Units Subscribed For: $                         

Dollar
Amount of Unit Subscription Accepted: $                         

	**If Subscriber is a Registered Representative with an NASD member firm or an affiliated person of an NASD member firm, have the acknowledgment to the right signed by the appropriate party:	 	The undersigned NASD member firm acknowledges receipt of the notice required by Rule 3040 of the NASD Conduct Rules.
	

 	
 	

 	
 	

 Name of NASD Member Firm
	

 	
 	

 	
 	

By:	
 	

 
	 	 	 	 	 	 	
 Authorized Officer
	
 SUBSCRIPTION ACCEPTED BY THE COMPANY:	
 	

 
	

INTRAWARE, INC.	
 	

 	
 	

 
	

By:	
 	

 	
 	

 	
 	

 
	 	 	
	 	 	 	 

 
 

EXHIBIT A
  
    Series B Designation    
  

 
 

EXHIBIT B
  
    Preferred Warrant    
  

 
 

EXHIBIT C
  
    Registration Rights Agreement    
  

 
 

EXHIBIT D
  
    Lock-Up Agreement    
  

 
 

EXHIBIT E
  
    Jackson Lock-Up    
  

 
 

EXHIBIT F
  
    Other Lock-Up    
  

QuickLinks

SUBSCRIPTION AGREEMENT

EXHIBIT A Series B Designation

EXHIBIT B Preferred Warrant

EXHIBIT C Registration Rights Agreement

EXHIBIT D Lock-Up Agreement

EXHIBIT E Jackson Lock-Up

EXHIBIT F Other Lock-Up

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00024-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00024-of-00352.parquet"}]]