Document:

Declaration of Rights Agreement

EXHIBIT 4.01 
 
DECLARATION OF REGISTRATION RIGHTS 
 
This DECLARATION OF REGISTRATION RIGHTS (this “Agreement”) is made as of July 31,
2002 by Concur Technologies, Inc., a Delaware corporation (“Acquirer”), for the benefit of the stockholders of Captura Software, Inc., a Delaware corporation (the “Company”), listed on Exhibit A
to this Agreement (collectively, the “Stockholders” and each, individually, a “Stockholder”), that are acquiring shares (the “Shares”) of Acquirer’s common stock, $0.001
par value per share (the “Common Stock”), pursuant to the terms of that certain Agreement and Plan of Reorganization dated of even date herewith (the “Merger Agreement”) by and among Acquirer, Canoe
Acquisition Corp., a Delaware corporation and a wholly-owned subsidiary of Acquirer, the Company and Fred Harman, as representative of the Stockholders. 
 
1. Shelf Registration Right on Form S-3. 
 
1.1 Certain Definitions. For purposes of this Agreement: 
 
“register,”
“registered” and “registration” refer to a registration effected by preparing and filing a registration statement in compliance with the Securities Act of 1933, as amended (the “Securities
Act”), and the declaration or ordering of effectiveness of such registration statement. 
 
“Form S-3” means a registration statement filed under Form S-3 under the Securities Act, as such is in effect at
the Effective Time, or any successor form of registration statement under the Securities Act subsequently adopted by the Securities and Exchange Commission (the “SEC”) which permits inclusion or incorporation of a substantial
amount of information by reference to other documents filed by Acquirer with the SEC. 
 
“Rule 415” means Rule 415 promulgated under the Securities Act, as such rule may be amended from time to time, or any similar or successor rule or regulation hereafter adopted
by the SEC. 
 
1.2 Form S-3 Shelf
Registration. 
 
(a) Shelf Registration
Statement. On or before January 31, 2003, Acquirer shall prepare and file with the SEC a registration statement covering all Shares (the “Registrable Securities”) on Form S-3 for an offering to be made on a continuous
basis pursuant to Rule 415 under the Securities Act (the “Registration Statement”; the prospectus, including any preliminary prospectus, final prospectus and any supplement thereto, is referred to as the
“Prospectus”), and shall use commercially reasonable efforts to cause the Registration Statement to be declared effective by the SEC on the ninth-month anniversary of the Effective Time (as defined in the Merger Agreement),
or as promptly practicable thereafter. The Registration Statement shall comply as to form in all material respects with the requirements of the Securities Act and the rules and regulations promulgated thereunder, permitting the registration and
resale of such Registrable Securities by the Stockholders in the manner designated by it (including, 
 

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without limitation, through underwritten public offerings). Acquirer shall use commercially reasonable
efforts to keep the Registration Statement effective (subject to Section 1.3 hereof) until the earliest of (i) the date on which the Stockholders shall have sold all of the Registrable Securities and (ii) the first anniversary of the Effective Time
(such period of time being hereinafter referred to as the “Effective Period”). If the Registration Statement ceases to be effective for any reason at any time during the Effective Period (other than because of the sale of all
of the securities registered thereunder or as permitted by Section 1.3 hereof), Acquirer shall use its best efforts to obtain the prompt withdrawal of any order suspending the effectiveness thereof. 
 
(b) Supplements and Amendments. During the Effective
Period, Acquirer shall supplement and amend the Registration Statement and the Prospectus if, as and when required by the Securities Act and the rules and regulations promulgated thereunder. 
 
(c) Timing and Manner of Sales. Any sale of
Registrable Securities pursuant to a Registration Statement under this Section 1.2 may only be made if in accordance with the method or methods of distribution of such Registrable Securities that are described in the Registration Statement or the
Prospectus and permitted by such form of registration statement. Subject to any other agreements between the Stockholders and Acquirer, a Stockholder may also sell Registrable Securities in a bona fide private offering if the selling
Stockholder provides Acquirer with a written opinion of counsel, satisfactory to counsel to Acquirer acting in a reasonable manner and upon which such opinion Acquirer is permitted to rely, that such offer and sale is an exempt transaction under the
Securities Act and applicable state securities laws, complies with all requirements for such exemptions and is not made with use of the Prospectus or the Registration Statement. 
 
(d) Market Standoff. Each Stockholder agrees that the Stockholder shall not make any sale, transfer
or other disposition of the Restricted Securities for a period of nine months from the Effective Time (the “Lock-Up Period”); provided, however, that the foregoing restriction is expressly agreed to preclude the
Stockholder from engaging in any hedging or other transaction which is designed to or which reasonably could be expected to lead to or result in a sale or disposition of the Stockholder’s Restricted Securities, even if such Restricted
Securities would be disposed of by someone other than the Stockholder; provided, further, that notwithstanding the foregoing, a Stockholder may transfer the Stockholder’s Restricted Securities during the Lock-Up Period (i)
as a bona fide gift or gifts, provided that the donee or donees thereof agree to be bound in writing by the restrictions set forth herein, (ii) to any trust for the direct or indirect benefit of the Stockholder or the Stockholder’s
immediate family, provided that the trustee of the trust agrees to be bound in writing by the restrictions set forth herein, and provided further that any such transfer shall not shall not involve a disposition for value, or (iii) with
the prior written consent of Acquirer; provided, further, that the foregoing restriction shall not apply to those Restricted Securities registered under a registration statement effected pursuant to Section 2 hereof, but shall apply (or continue to
apply, as the case may be) to any Restricted Securities not so registered, even if a portion of Stockholder’s Restricted Securities have been so registered. Notwithstanding anything contained in this Agreement to the contrary, Stockholder may
not transfer Stockholder’s Restricted Securities during the Lock-Up Period (i) to an affiliate of Stockholder, or (ii) to any transferee who is a partner (general or limited, active or retired (who retires after the date hereof)), a current or
former member, or a stockholder of Stockholder that is a partnership, limited liability company or corporation, respectively. Following the expiration of the Lock-Up Period, Stockholder shall not make any sale, transfer or other disposition of
Stockholder’s Restricted Securities in violation of the Securities Act or the rules and regulations promulgated thereunder. 
 

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For purposes
of this Section 1.2(d) “hedging or other transactions” shall include without limitation any short sale or any purchase, sale or grant of any right (including without limitation any put or call option) with respect to any of
the Stockholder’s Restricted Securities or with respect to any security that includes, relates to, or derives any significant part of its value from such Restricted Securities. Also for purposes of this Section 1.2(d), “immediate
family” shall mean any relationship by blood, marriage or adoption, not more distant than first cousin (or fist cousin of spouse). 
 
1.3 Limitations. Notwithstanding the provisions of Section 1.2 above, no Stockholder shall be entitled to sell Registrable
Securities pursuant to any registration statement filed under Section 1.2 of this Agreement, under the following circumstances: 
 
(a) if Form S-3 is not then available for such offering by the Stockholders; 
 
(b) if Acquirer is acquired and the Common Stock ceases to be publicly traded; 
 
(c) in any particular jurisdiction in which Acquirer would be
required to qualify to do business or to execute a general consent to service of process in effecting such registration, qualification or compliance, unless Acquirer is already subject to service of process in such jurisdiction; or 
 
(d) if the SEC refuses to declare such registration (or any
amendment) effective due to the participation of any particular Stockholder in such registration (unless such Stockholder withdraws all such Stockholder’s Registrable Securities from such registration statement); or if the manner in which any
Registrable Securities are disposed of pursuant to the Registration Statement is not included within the plan of distribution set forth in the Prospectus. 
 
1.4 Private Transfers. Each Stockholder agrees that except as otherwise contemplated by this Section 1, any sale, transfer
or other disposition of any Registrable Securities may only be effected if (a) in the opinion of counsel to Acquirer, reasonably held, all such Registrable Securities proposed to be sold by such Stockholder may be sold in a three-month period
without registration under the Securities Act, pursuant to Rule 144 under the Securities Act or otherwise; (b) Acquirer or its legal counsel shall have received a “no-action” letter or similar written confirmation from the SEC that all the
Registrable Securities proposed to be sold by such Stockholder may be sold in a three-month period without registration under the Securities Act, pursuant to Rule 144 under the Securities Act or otherwise; (c) only one broker/dealer is used to
effect any such sales at any one time; and (d) such sale, transfer or other disposition does not result, to the knowledge of each Stockholder (after reasonable inquiry), in any single person or group owning 5% or more of Acquirer’s then
outstanding Common Stock. 
 

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1.5 Termination of Acquirer’s Obligations. Acquirer shall have no
obligations pursuant to Section 1.2 or other request or requests for registration (or inclusion in a registration) made by any Stockholder nor shall Acquirer have any obligation to maintain or continue to keep effective any registration or
registration statement pursuant thereto: (a) after the expiration or termination of the Effective Period; (b) with respect to a particular Stockholder if, Acquirer or its counsel has received a “no-action” letter described in Section
1.4(b) or the opinion of counsel submitted to Acquirer pursuant to Section 1.4(a) is acceptable; or (c) if all Registrable Securities have been registered and sold pursuant to a registration(s) effected pursuant to this Agreement and/or have been
transferred in transactions in which registration rights hereunder have not been assigned in accordance with this Agreement. 
 
1.6 Expenses. All expenses incurred in connection with a registration pursuant to this Section 1, including without
limitation all printers’ and accounting fees, SEC filing fees, fees and disbursements of counsel for Acquirer, shall be borne by Acquirer. Each Stockholder participating in a registration pursuant to this Section 1 shall bear such
Stockholder’s proportionate share (based on the number of Registrable Securities sold by such Stockholder over the total number of shares included in such registration at the time it goes effective) of all discounts, commissions or other
amounts payable to underwriters or brokers in connection with such offering, the fees and disbursements of any counsel for the participating Stockholders and any transfer taxes relating to the sale, transfer or other disposition of the Registrable
Securities. 
 
1.7 Registration
Obligations of Acquirer. Subject to Sections 1.2, 1.3 and 1.4 above, when required to effect the registration of any Registrable Securities under the terms of this Agreement, Acquirer shall, as expeditiously as reasonably possible:

 
(a) furnish to each Stockholder and each
underwriter such number of conformed copies of the Prospectus, including each preliminary prospectus, final prospectus and amendments or supplements thereto, in conformity with the requirements of the Securities Act, and such other documents as each
Stockholder (or underwriter) may reasonably request; 
 
(b) notify each Stockholder promptly and, if requested by such Stockholder, confirm such notification in writing promptly (i) when a registration statement has become effective and when any post-effective amendments and supplements
thereto become effective, (ii) of any request made by the SEC or any state securities authority for post-effective amendments and supplements to a registration statement that has become effective, (iii) of the issuance by the SEC or any state
securities authority of any stop order suspending the effectiveness of a registration statement or the initiation of any proceedings for that purpose, (iv) of the receipt by Acquirer of any notification with respect to the suspension of the
qualification of the Registrable Securities for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose, and (v) of any determination by Acquirer that a post-effective amendment to a registration statement would
be appropriate; 
 

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(c) use
reasonable efforts to register and qualify the Registrable Securities by the time the applicable Registration Statement is declared effective by the SEC under all applicable state securities or “blue sky” laws of such jurisdictions as the
Stockholders shall reasonably request in writing, to keep each such registration and qualification effective during the Effective Period; provided, however, that Acquirer will not be required to (i) qualify generally to do business in
any jurisdiction where it would not otherwise be required to qualify but for this paragraph (c), (ii) subject itself to taxation in any jurisdiction, or (iii) consent to general service of process in any such jurisdiction, except as may be required
by the Securities Act; 
 
(d) promptly notify each
Stockholder covered by such Registration Statement when a prospectus relating thereto is required to be delivered under the Securities Act, of the happening of any event as a result of which the Prospectus included in such Registration Statement, as
then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing and, subject
to the provisions of this Agreement, at the request of any Stockholder, prepare and furnish to each Stockholder a reasonable number of copies of a supplement to or an amendment of the prospectus as may be necessary to correct the untrue statement or
omission; 
 
(e) use reasonable efforts to cause
all such Registrable Securities to be listed on the Nasdaq National Market and each securities exchange on which similar securities issued by Acquirer are then listed; 
 
(f) upon the request of any Stockholder, promptly provide the name, address and other contact information
regarding Acquirer’s transfer agent for the Registrable Securities and the CUSIP number for the Registrable Securities; 
 
(g) if the lead managing underwriter of a registration pursuant to this Section 1 advises Acquirer that, in its judgment, the number of
shares of Common Stock proposed to be included in such underwritten public offering should be limited due to market conditions, then Acquirer will promptly so advise each participating Stockholder; and Acquirer and each participating Stockholder
will include in such offering the number of shares which, in the opinion of the lead managing underwriter can be sold (the “Maximum Offering Amount”). The Maximum Offering Amount shall be allocated first, to the
Stockholders to the full extent of shares of Shares such Stockholder desires to sell, and second, if any shares of Common Stock remain under the Maximum Offering Amount, to each other participating holder in proportion to each request for
inclusion made by each such participating holder. If the underwriting agreement executed in connection with such offering provides for an overallotment option to be granted to the underwriters, and if such option is exercised by the underwriters,
the allocation priority established by the previous sentence shall govern the allocation with respect to the sale of any shares of Common Stock and Registrable Securities pursuant to such exercise by the underwriters. 
 
(h) Enter into and perform its obligations under an
underwriting agreement, in usual and customary form, with the managing underwriter(s) of such offering. Each Stockholder participating in such underwriting hereby agrees to also enter into and perform its obligations under such an agreement.

 

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(i) Participate in customary road show meetings reasonably requested (and reasonable in
scope in light of the size of the offering) upon reasonable prior notice by the lead managing underwriter of such offering. 
 
1.8 Stockholder Information. It shall be a condition precedent to the obligations of Acquirer to take any action pursuant to
this Agreement that the selling Stockholders will furnish to Acquirer such information regarding themselves, the Registrable Securities held by them, and the intended method of disposition and plan of distribution of such Registrable Securities as
shall be required to timely effect the registration of their Registrable Securities. 
 
1.9. Delay of Registration. No Stockholder will have any right to obtain or seek an injunction restraining or otherwise delaying any registration that is the subject of this Agreement as
the result of any controversy that might arise with respect to the interpretation or implementation of this Agreement. 
 
1.10 Indemnification. 
 
(a) By Acquirer. To the extent permitted by law, Acquirer will indemnify, defend and hold harmless
each Stockholder against any losses, claims, damages, or liabilities (joint or several) to which such Stockholder may become subject under the Securities Act, the Securities Exchange Act of 1934 (the “1934 Act”) or other
federal or state law, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any of the following statements, omissions or violations (collectively a
“Violation”): 
 
 (i)
any untrue statement or alleged untrue statement of a material fact contained in a registration statement filed by Acquirer pursuant to this Agreement, including any preliminary prospectus or final prospectus contained therein or any amendments or
supplements thereto; 
 
 (ii) the omission or
alleged omission to state in such registration statement, preliminary prospectus or final prospectus or any amendments or supplements thereto, a material fact required to be stated therein, or necessary to make the statements therein not misleading;
or 
 
 (iii) any violation or alleged
violation by Acquirer of the Securities Act, the 1934 Act, any U.S. federal or state securities law or any rule or regulation promulgated under the Securities Act, the 1934 Act or any U.S. federal or state securities law in connection with the
offering covered by such registration statement; 
 
and Acquirer
will reimburse such Stockholder for any legal or other expenses reasonably incurred by such Stockholder in connection with investigating or defending against any such loss, claim, damage, liability or action, as incurred; provided,
however, that the indemnity agreement contained in this subsection 1.10(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of Acquirer
(which consent shall not be unreasonably withheld), nor shall Acquirer be liable in any such case for any such loss, claim, damage, liability or action to the extent that it arises out of or is based upon a Violation which occurs in reliance upon
and in conformity with written information furnished by such Stockholder expressly for use in connection with such registration. 
 

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(b) By
Selling Stockholders. To the extent permitted by law, each selling Stockholder severally and not jointly, will indemnify and hold harmless Acquirer, each of its directors, each of its officers who have signed the registration statement, each
person, if any, who controls Acquirer within the meaning of the Securities Act, any underwriter and any other holder selling securities under such registration statement, against any losses, claims, damages or liabilities (joint or several) to which
Acquirer or any such director, officer, controlling person, underwriter or other such holder may become subject under the Securities Act, the 1934 Act or other federal or state law, insofar as such losses, claims, damages or liabilities (or actions
in respect thereto) arise out of or are based upon any Violation, in each case to the extent (and only to the extent) that such Violation occurs in reliance upon and in conformity with written information furnished by such Stockholder expressly for
use in connection with such registration; and each such Stockholder will reimburse Acquirer or any such director, officer, controlling person, underwriter or other holder for any legal or other expenses reasonably incurred by Acquirer or any such
director, officer, controlling person, underwriter or other holder in connection with investigating or defending any such loss, claim, damage, liability or action, as incurred; provided, however, that the indemnity agreement contained
in this subsection 1.10(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the indemnifying Stockholder, which consent shall not be unreasonably
withheld; and provided further that the total amounts payable in indemnity by a Stockholder under this subsection 1.10(b) in respect of any Violation shall not exceed the net proceeds received by such Stockholder in the registered offering out
of which such Violation arises. 
 
(c)
Notice. Promptly after receipt by an indemnified party under this Section 1.10 of notice of the commencement of any action (including any governmental action), such indemnified party will, if a claim for indemnification or contribution in
respect thereof is to be made against any indemnifying party under this Section 1.10, deliver to the indemnifying party a written notice of the commencement thereof and, if the indemnifying party is Acquirer, Acquirer shall have the right and
obligation to control the defense of such action; provided, however, that: (i) the indemnified party or parties shall have the right to participate at their own expense in the defense thereof, and, to the extent agreed in writing with
the indemnifying party and any other indemnifying party similarly noticed, to assume the defense thereof, with counsel mutually satisfactory to the parties (except that Acquirer will have the right to assume such defense if it, or any of its
officers, directors, or controlling persons, is indemnified by the selling Stockholders); and (iii) an indemnified party shall have the right to retain its own counsel, with the fees and expenses of such counsel to be paid by the indemnifying
party, if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential conflict of interests between such indemnified party and any other party represented by such
counsel in such proceeding. The failure of an indemnified party to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action, if prejudicial to the ability of the indemnifying party to defend
such action, shall not relieve such indemnifying party of liability to the indemnified party under this Section 1.10, except to the extent (and only to the extent) of such prejudice, but the omission so to deliver written notice to the indemnifying
party will not relieve the indemnifying party of any liability that it may have to any indemnified party otherwise than under this Section 1.10. 
 

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(d) Defect
Eliminated in Final Prospectus. The foregoing indemnity agreements of Acquirer and Stockholders are subject to the condition that, insofar as they relate to any Violation made in a preliminary prospectus but eliminated or remedied in the amended
prospectus on file with the SEC at the time the registration statement in question becomes effective or the amended prospectus filed with the SEC pursuant to SEC Rule 424(b) (the “Final Prospectus”), such indemnity agreement
shall not inure to the benefit of any person if a copy of the Final Prospectus was furnished to the indemnified party and was not furnished to the person asserting the loss, liability, claim or damage at or prior to the time such action is required
by the Securities Act. 
 
(e) Contribution.
In order to provide for just and equitable contribution to joint liability under the Securities Act in any case in which either (i) any Stockholder exercising rights under this Agreement makes a claim for indemnification pursuant to this Section
1.10 but it is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) that such indemnification may not be enforced in
such case notwithstanding the fact that this Section 1.10 provides for indemnification in such case, or (ii) contribution under the Securities Act may be required on the part of any such selling Stockholder in circumstances for which indemnification
is provided under this Section 1.10; then, and in each such case, Acquirer and such Stockholder will contribute to the aggregate losses, claims, damages or liabilities to which they may be subject (after contribution from others) in such proportion
so that such Stockholder is responsible for the portion represented by the percentage that the public offering price of its Registrable Securities offered by and sold by such Stockholder under the registration statement bears to the public offering
price of all securities offered by and sold under such registration statement, and Acquirer and other selling Stockholders are responsible for the remaining portion; provided, however, that, in any such case, (A) no such Stockholder
will be required to contribute any amount in excess of the public offering price of all such Registrable Securities offered and sold by such Stockholder pursuant to such registration statement; and (B) no person or entity guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any person or entity who was not guilty of such fraudulent misrepresentation. 
 
(f) Survival. The obligations of Acquirer and
Stockholders under this Section 1.10 shall survive the completion of any offering of Registrable Securities in the Registration Statement. 
 
1.11 Assignment of Rights. The rights of a Stockholder under this Agreement may be assigned only with Acquirer’s
express prior written consent, which consent shall not be unreasonably withheld; provided, however, that the rights of a Stockholder under this Agreement may be assigned without Acquirer’s express prior written consent: (a) to a
Permitted Assignee (as defined below); or (b) if applicable, by will or by the laws of intestacy, descent or distribution, provided that the assignee agrees in writing to be bound by all the obligations of, and restrictions applicable to,
Stockholders under this Agreement. Notwithstanding the foregoing, upon the expiration of the Lock-Up Period, Stockholder may assign Stockholder’s rights under this Agreement to any transferee who is a limited partner (active or retired (who
retires after the date hereof)) of Stockholder that is a partnership or limited liability company, respectively, without the requirement set forth in clause (b) of the foregoing sententce. Any attempt to assign any rights of a Stockholder under this
Agreement without Acquirer’s express prior written consent in a situation in which such consent is required by this Section shall be null and void and without effect. Subject to the foregoing restrictions, all rights, covenants and agreements
in this Agreement by or on behalf of the parties hereto will bind and inure to the benefit of the respective permitted successors and assigns of the parties hereto. Each of the following parties are “Permitted Assignees” for
purposes of this Section: (a) a trust whose beneficiaries consist solely of a Stockholder and such Stockholder’s immediate family; and (b) the personal representative, custodian or conservator of a Stockholder, in the case of the death,
bankruptcy or adjudication of incompetency of that Stockholder. 
 

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2.
Piggyback Registration Rights. 
 
(a)
Acquirer agrees that following the Effective Time of the Merger (as those terms are defined in the Merger Agreement), it will use commercially reasonable efforts to cause that certain Third Amended and Restated Information and Registration Rights
Agreement, dated as of May 26, 1999, as amended by the Amendment to the Third Amended and Restated Information and Registration Rights Agreement, dated as of March 23, 2000 (the “Original Agreement”, and as amended pursuant
hereto, the “Amended Registration Rights Agreement”), to provide that: 
 
(i) for purposes of all sections other than Section 7 (Demand or Form S-3 Registration) of the Original Agreement, the definition of “Holder” shall be amended to include the Stockholders;
provided, however, that, the Stockholders’ right under Section 8 (Piggyback Registration) shall be subordinate to the piggyback registration rights of the Holders (under the Original Agreement, including without limitation the
Series E Preferred Stock holders, SAFECO Corporation and Nortel Networks, Inc.) and in the event that an underwriter limits the number of shares to be included in a registration, following the exclusion of the shares held by officers or directors of
Acquirer, the Stockholders’ Shares will be excluded from such registration (prior to the shares of any other Holder (as that term is defined in the Original Agreement), provided that if less than all Shares of Stockholders are excluded
from such registration, the exclusion will be pro rata among Stockholders, based on the number of shares each Stockholder would have otherwise been entitled to include in such registration. 
 
(ii) the definition of “Registrable Securities” in
the Original Agreement shall be amended to include the Shares for purposes of all sections other than Section 7 (Demand or Form S-3 Registration) of the Original Agreement (subject to the restrictions described in paragraph (a)(ii) above).

 
(b) Each Stockholder hereby agrees that, if
requested by an underwriter of a registered sale in which a Stockholder exercises such Stockholder’s “piggyback rights” described in paragraph (a) above, such Stockholder will not to offer, sell or otherwise dispose of any of such
Stockholder’s Shares without prior written consent of Acquirer or the underwriter for a period of up to ninety (90) days following the effective date of the registration statement. 
 

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3. Miscellaneous. 
 
3.1 Entire Agreement; Successors and Assigns.
This Agreement, the Merger Agreement and the Investment Representation Letter executed by each Stockholder in connection with the Merger constitute the entire agreement between Acquirer, the Company and each Stockholder relative to the subject
matter hereof. Any previous agreement between Acquirer, the Company and each Stockholder concerning registration rights is superseded by this Agreement. Subject to the exceptions specifically set forth in this Agreement, the terms and conditions of
this Agreement shall inure to the benefit of and be binding upon the respective executors, administrators, heirs, successor, and assigns of the parties. 
 
3.2 Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware
excluding those laws that direct the application of the laws of another jurisdiction. 
 
3.3 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same
instrument. 
 
3.4 Headings. The
headings of the sections of this Agreement are for convenience and shall not by themselves determine the interpretation of this Agreement. 
 
3.5 Notices. All notices and other communications required or permitted under this Agreement will be in writing and will be
either hand delivered in person, sent by facsimile, sent by certified or registered first class mail, postage pre-paid, or sent by nationally recognized express courier service. Such notices and other communications will be effective upon receipt if
hand delivered or sent by facsimile, three (3) days after mailing if sent by mail, and one (1) day after dispatch if sent by express courier, if sent to the following addresses or such other addresses as any party may notify the other parties:

 
1.  If to Acquirer:

 
Concur Technologies, Inc. 
6222 185th Ave. N.E. 
Redmond, WA 98052 
Attention: General Counsel 
Phone: (425) 497-7394 
Fax: (415) 497-5930 
 
with a copy to: 
 
Fenwick & West LLP 
Two Palo Alto Square 
Palo Alto, CA 94306 
Attention: Matthew P. Quilter, Esq. 
Phone: (650) 494-0600 
Fax: (650) 494-1417 
 

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2. If to the Stockholder, then at the address listed next to such Stockholder’s name
on Exhibit A hereto; provided that, if a Stockholder does not provide Acquirer with such Stockholder’s address, Acquirer will have no obligations to give notice to such Stockholder under this Agreement or the Amended Registration
Rights Agreement. 
 
3.6 Amendment of
Agreement. Any provision of this Agreement may be amended and the observance thereof may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of Acquirer and the
holders of a majority of Shares (at the time such amendment or waiver). Any amendment or waiver effected in accordance with this section shall be binding upon each Stockholder, each permitted successor or assignee of such Stockholder and Acquirer.

 
3.7 Severability. In case any
provision of this Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
 
3.8 No Third Party Beneficiaries. Nothing in
this Agreement, express or implied, is intended to confer upon any person, other than the parties hereto, the Stockholders, and their successors and assigns, any rights or remedies under or by reason of this Agreement. 
 
3.9 Effectiveness of Agreement. Regardless of
when signed, this Agreement will not become effective or binding unless and until the Effective Time. 
 
[THE REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK.]

 

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IN WITNESS WHEREOF, the undersigned have executed this Declaration of Registration Rights as of the date
first above written. 
 

	
	  CONCUR TECHNOLOGIES, INC.         

	
	  By:
	  	  /s/ S. Steven Singh

	
	  Name:
	  	       S. Steven Singh

	
	  Title:
	  	  Chief Executive Officer

 
 
[Signature Page to Declaration of Registration Rights] 
 

12<PAGE>
                                                                         EX 10.1

                         EXECUTIVE EMPLOYMENT AGREEMENT

     THIS EXECUTIVE EMPLOYMENT AGREEMENT ("Agreement") is made and entered into
effective as of November 7, 2002 (the "Effective Date"), by and between Velocity
Express Corporation, a corporation duly organized and existing under the laws of
the State of Delaware, with a place of business at 7803 Glenroy Road, Suite 200,
Bloomington, MN, hereinafter referred to as "Company" and Jeffry J. Parell,
hereinafter referred to as "Executive".

                                    ARTICLE 1

                                   EMPLOYMENT

     1.01. Company hereby agrees to employ Executive as President and Chief
Executive Officer of Company, and Executive hereby accepts and agrees to such
employment from and after the Effective Date, on the terms and conditions of
this Agreement.

     1.02. Executive shall have the authority, responsibilities, and perform
such duties as are customarily performed by a president and chief executive
officer or comparable position in other or similar businesses as that engaged in
by Company. A list of duties and responsibilities for this position is attached
hereto, and incorporated as a part hereof, as Exhibit A. Executive shall also
render such additional services and duties as may be reasonably requested of him
from time to time by Company's Board of Directors, and are consistent with
Executive's position and title.

     1.03. Executive shall report to the Company's Board of Directors.

     1.04. As a condition to Executive's employment by the Company and the
effectiveness of this Agreement, Executive agrees to submit to a physical
examination and drug test conducted by physicians acceptable to the Company, and
to a reference, security and credit check. In the event the results of any of
the foregoing are unacceptable to the Company in its sole discretion, the
Company's offer of employment to Executive may be revoked, and this Agreement
may be terminated and considered void ab initio, without any further obligation
of whatever kind to Executive by the Company. Executive further agrees that
Executive's employment by the Company and the effectiveness of this Agreement is
conditioned on the appropriate approval of the Company's Board of Directors.

     1.05. Executive's home office shall be Company's principal executive
office, which is currently located at 7803 Glenroy Road, Suite 200, Bloomington,
Minnesota. The Company intends to maintain its headquarters in the Minneapolis,
Minnesota metropolitan area. Executive acknowledges and agrees that the nature
and extent of his duties as President and Chief Executive Officer of the Company
will require extensive travel to the principal places of business of the
Company, its subsidiaries and their operating locations.

                                      -1-

<PAGE>

                                    ARTICLE 2

                            BEST EFFORTS OF EXECUTIVE

     2.01. Executive agrees that he will at all times faithfully, industriously,
and to the best of his ability, experience, and talents, perform all of the
duties that may be required of and from him pursuant to the express and implicit
terms of this Agreement, to the reasonable satisfaction of Company.

     The foregoing shall not preclude Executive from devoting reasonable time to
activities such as supervision of personal investments and activities involving
professional, charitable, educational, religious and similar types of
activities, speaking engagements and membership on up to two other boards of
directors, provided such activities do not interfere in any material way with
the business of the Company or with Executive's performance of his duties
pursuant to this Agreement. The time involved in such activities will be treated
as time-off or vacation time unless otherwise approved in advance in the
reasonable discretion of Company, and Executive shall be solely responsible for
all costs incurred in connection with such activities. Executive shall be
entitled to keep any amounts paid to him in connection with such activities
(e.g., director fees and honoraria).

                                    ARTICLE 3

                        TERM OF EMPLOYMENT AND AGREEMENT

     3.01. The Term of Executive's employment with Company pursuant to this
Agreement shall be two (2) years from the Effective Date, subject to the
provisions set forth in Article 6 of this Agreement. Upon the expiration of this
initial two year Term, this Agreement shall be automatically extended for six
month periods, unless either Executive or Company provides the other with
written notice of intention not to renew at least ninety (90) days prior to the
expiration of the initial Term, and at least sixty (60) days prior to the
expiration of any extension Term.

                                    ARTICLE 4

                            COMPENSATION AND BENEFITS

     4.01. Executive will be paid an annualized base salary ("Base Salary") of
Three Hundred Seventy Five Thousand and no/100 Dollars ($375,000.00).
Executive's base salary shall be payable in equal installments pursuant to
Company's normal payroll procedures and dates. Company's Board of Directors
shall review Executive's base salary compensation at least annually, generally
at the conclusion of the Company's fiscal year. Any increase in Executive's base
salary shall be made within Company's sole judgment and discretion and shall be
based on an analysis of total compensation paid to a president and chief
executive officer or such other comparable position of entities comparable to
the Company within this region and any other criteria Company determines are
appropriate. Such adjusted annual salary then shall become the Executive's "Base
Salary" for purposes of this Agreement. The Executive's annual Base Salary shall
not be reduced after any increase, without the Executive's written consent.

                                      -2-

<PAGE>

     4.02. Executive shall be eligible to receive such fringe benefits as are,
and may be, made available to any other executive employee of Company from time
to time. Such benefits may include, but are not limited to, a medical and dental
plan, short-term disability plan, long-term disability plan, profit sharing and
nonqualified deferred compensation arrangements, and a life insurance plan.
Executive shall be covered by the Company's life insurance plan during the Term
of this Agreement, such coverage to be in an amount equal to no less than two
times Executive's Base Salary and paid for by the Company. Executive and his
dependents shall become covered under the Company's group health benefits plan
subject to the contribution and election requirements applicable to other
executive employees.

     4.03. Executive shall be eligible to receive annual incentive bonus
compensation for the previous year upon achievement of preestablished personal
and overall Company goals and/or other criteria as are determined and approved
by Company's Board of Directors. Any bonus payments shall be made within ninety
(90) days following the completion of each fiscal year. Any dispute between
Executive and COMPANY as to the amount of, or entitlement to, any bonus shall be
promptly addressed by the Compensation Committee of Company's Board of
Directors. Unresolved disputes shall be submitted to arbitration in Minneapolis,
Minnesota, in accordance with the applicable rules of the American Arbitration
Association.

     4.04  If an automobile manufacturer, or an affiliate thereof, provides one
or more executives of the Company with the use of an automobile, Executive at
his discretion shall be provided with the use of an automobile. Executive shall
receive a monthly car allowance in the amount of $400.00. Executive otherwise
shall submit to the Company such reports regarding monthly car usage as the
Company may reasonably require. The amount of Executive's monthly car allowance
shall be reviewed on a periodic basis, and may be increased, but not decreased.
The Executive will pay all personal related income taxes.

     4.05. Company shall reimburse Executive for all reasonable and necessary
business expenses incurred in the performance of services with Company,
according to Company's policies and upon Executive's presentation of an itemized
written statement and such verification as Company may require.

                                    ARTICLE 5

                          VACATION AND LEAVE OF ABSENCE

     5.01. Executive is entitled to twenty-one (21) days of paid vacation per
year, in addition to Company's normal holidays. Vacation time will be scheduled
taking into account the Executive's duties and obligations at Company. Sick
leave, holiday pay and all other leaves of absence will be in accordance with
Company's stated personnel policies. Vacation days not used in any year may be
carried over to the following year.

                                      -3-

<PAGE>

                                    ARTICLE 6

                                   TERMINATION

     6.01. Executive may resign his position and terminate his employment by
giving Company one hundred twenty (120) days written notice of his intention to
resign. If requested by Company, Executive agrees to cooperate in training his
successor until his actual termination. In the event of such resignation,
Executive shall receive only that compensation earned through his last day of
employment; provided, however, that, provided Executive gives proper notice and
cooperates in such training, Executive shall be entitled to all or a portion of
any bonus due Executive pursuant to any bonus plan or arrangement established
prior to termination, to the extent earned or performed based upon the
requirements or criteria of such plan or arrangement, as the Board of Directors
of Company shall in good faith determine.

     6.02. Company may, subject to applicable law, terminate this Agreement by
giving Executive thirty (30) days notice if Executive, due to sickness or
injury, is prevented from carrying out his essential job functions for a period
of six (6) months as reasonably determined by Company's Board of Directors. In
the event of such termination, Executive shall receive that compensation earned
through the date of termination and continuation of Executive's medical and
dental plan, long term disability plan, and a life insurance coverage until the
second anniversary of the date of termination, at the same cost to Executive as
in effect prior to termination; provided, however, that Executive shall be
entitled to all or a portion of any bonus due Executive pursuant to any bonus
plan or arrangement established prior to termination, to the extent earned or
performed based upon the requirements or criteria of such plan or arrangement,
as the Board shall in good faith determine. If Executive's employment or this
Agreement is terminated under this Section 6.02 and the illness or injury
causing such termination is work-related, the Company shall cause the immediate
vesting and exercisability of any unvested stock options or warrants to purchase
Company Common Stock then held by Executive.

     6.03. Executive's employment and this Agreement will be deemed terminated
upon the death of the Executive. In the event of such termination, Executive
shall receive compensation earned through the date of termination and
continuation of medical and dental plan coverage for Executive's spouse and
dependents until the second anniversary of the date of termination, at the same
cost to Executive's spouse and dependents as in effect prior to termination;
provided, however, that Executive shall be entitled to all or a portion of any
bonus due Executive pursuant to any bonus plan or arrangement established prior
to termination, to the extent earned or performed based upon the requirements or
criteria of such plan or arrangement, as the Board shall in good faith
determine. If Executive's employment or this Agreement is terminated under this
Section 6.03, the Company shall cause the immediate vesting and exercisability
of all unvested stock options or warrants to purchase Company Common Stock then
held by Executive.

     6.04. Any other provision of this Agreement notwithstanding, Company may
terminate Executive's employment without notice if the termination is based on
any of the following events that constitute Cause:

                                      -4-

<PAGE>

     (a)  Any conviction or nolo contendere plea by Executive to a felony or
          gross misdemeanor, or a misdemeanor involving moral turpitude; or any
          public conduct by Executive, which has or can reasonably be expected
          to have a material detrimental effect on Company; or

     (b)  Any fraud, misappropriation, embezzlement or intentional material
          damage to the property or business of Company by Executive; or

     (c)  Executive's willful violation of federal or state securities laws, or
          the rules or regulations of the Securities and Exchange Commission or
          any market on which Company's securities are listed, which has or can
          reasonably be expected to have a material detrimental effect on
          Company; or

     (d)  Executive's willful breach of any of the provisions of this Agreement,
          willful breach of fiduciary duty or willful violation of specific
          lawful and reasonable directions of the Board of Directors of Company
          conveyed to Executive in writing.

In the event of such termination for Cause, and not withstanding any contrary
provision otherwise stated, Executive shall receive only his base salary earned
through the date of termination and all of the options and/or warrants granted
to Executive hereunder or otherwise by Company shall immediately terminate and
be of no further force or effect.

     6.05. The employment of the Executive shall in no event be considered to
have been terminated for Cause if the termination of his employment took place:

     (a)  as a result of an act or omission which occurred more than 360 days
          prior to the Executive's having been given notice of the termination
          of his employment for such act or omission, unless the commission of
          such act or such omission could not at the time of such commission or
          omission have been known to a member of the Board of Directors (other
          than the Executive, if he is then a member of the Board of Directors),
          in which case more than 360 days from the date that the commission of
          such act or such omission was or could reasonably have been so known;

     (b)  as a result of the continuing course of action which commenced and was
          or reasonably could have been known to a member of the Board of
          Directors (other than the Executive) more than 360 days prior to
          notice having been given to the Executive of the termination of his
          employment; or

     (c)  as a result of any act, or failure to act based upon specific
          directions given pursuant to a resolution duly adopted by the Board of
          Directors, or based upon the specific advice of counsel for Company.

                                      -5-

<PAGE>

                                    ARTICLE 7

                                    SEVERANCE

     7.01. If the Company, or its respective successors or assigns, terminates
Executive's employment for any reason other than those listed in Sections 6.02,
6.03, and 6.04 above, or Executive terminates his employment for Good Reason (as
defined below) the Company, or its successors or assigns, shall:

     (a)  pay Executive as severance pay each month for eighteen (18)
          consecutive months following his termination his monthly Base Salary
          in effect at the time of separation, less customary withholdings,
          beginning one (1) month after termination; provided that said
          severance payments shall terminate at such time as Executive finds
          other comparable employment, which Executive agrees to seek in good
          faith;

     (b)  continue to provide Executive with COBRA medical and dental coverage,
          long term disability plan, and life insurance plan coverage for
          eighteen (18) months following his termination, at the same cost to
          Executive as in effect prior to his termination;

     (c)  cause the immediate vesting and exercisability of any unvested stock
          options or warrants to purchase the Company's Common Stock then held
          by Executive;

     (d)  provide or reimburse Executive for outplacement services and related
          benefits for a period of twelve (12) months in an aggregate amount not
          to exceed $20,000.00;

     (e)  pay Executive, within sixty (60) days of such termination, (i) the
          amount of any earned but unpaid bonus attributable to a completed
          fiscal year, and (ii) an amount equal to the prorated portion of the
          annual bonus payment Executive would have received for the fiscal year
          including the date of termination, provided all Bonus Criteria through
          such termination have been achieved; and

     (f)  pay Executive, within fifteen (15) days of such termination, all
          compensation earned by him through the date of termination (including
          without limitation, accrued vacation pay) to the extent not
          theretofore paid, and the amount of reimbursable expenses theretofore
          incurred in the course of employment.

     7.02. For purposes of this Agreement, "Good Reason" shall mean the
occurrence of any of the following without Executive's prior written consent (i)
assigning duties to Executive that are inconsistent with those of the position
of President and Chief Executive Officer of Company for similar companies in
similar industries; (ii) requiring Executive to report to other than the
Company's Board of Directors; (iii) the repeated failure of Company to pay any
portion of Executive's compensation within a reasonable time of the date such
compensation is due; (iv) Company requires Executive to relocate his principal
business office to a location not within 50 miles of Company's principal
business office on the Effective Date; or (v) Company's failure to continue in
effect any cash or stock-based incentive or bonus plan, pension plan, welfare
benefit plan or other benefit plan, program or arrangement, unless the aggregate
value of all such arrangements provided to Executive

                                      -6-

<PAGE>

after such discontinuance is not materially less than the aggregate value as of
the Effective Date, and unless such failure to continue affects the other senior
executives of Company in like manner. For purposes of this paragraph, "Company"
shall mean the Company and, following any Change in Control, the Surviving
Corporation or, if applicable, the Parent Corporation (as those terms are
defined in Section 11.03).

                                    ARTICLE 8

                                  NONDISCLOSURE

     8.01. Except as permitted or directed by Company or as may be required in
the proper discharge of Executive's employment hereunder, Executive shall not,
during the Term or at any time thereafter, divulge, furnish or make accessible
to anyone or use in any way any confidential, trade secret or proprietary
information of Company, or either of their subsidiaries or affiliates
(collectively, the "Company"), including without limitation, whether or not
reduced to writing, customer lists, customer files or information, planning and
financial information, contracts, sales and marketing information, business
strategy or opportunities for new or developing business, current or planned
acquisitions or divestitures, and including any confidential or trade secret
information that may be in the possession of any of the Company regarding other
persons, firms or entities, or information regarding which Executive has
prepared, acquired or become acquainted with during his employment by Company.
Executive acknowledges that the above-described knowledge or information is the
property of the Company that constitutes a unique and valuable asset and
represents a substantial investment by the Company, and that any disclosure or
other use of such knowledge or information, other than for the sole benefit of
the Company, would be wrongful and would cause irreparable harm to the Company.
Executive agrees to at all times maintain the confidentiality of such knowledge
or information, to refrain from any acts or omissions that would reduce its
value to the Company, and to take and comply with reasonable security measures
to prevent any accidental or intentional disclosure or misappropriation. Upon
termination of Executive's employment for any reason, Executive shall promptly
return to Company all such confidential, trade secret and proprietary
information, including all copies thereof, then in Executive's possession,
control or influence, whether prepared by Executive or others.

     8.02. The foregoing obligations of confidentiality shall not apply to any
knowledge or information (i) the entirety of which is now published or
subsequently becomes generally publicly known, other than as a direct or
indirect result of the breach of this Agreement by Executive or a breach of a
confidentiality obligation owed to any of the Company by any third party, (ii)
that can be demonstrated by Executive to have been known by him prior to his
employment by the Company, or (iii) is obtained by Executive in good faith from
a third party who discloses such knowledge or information to Executive without
violating any obligation of confidentiality or secrecy.

     8.03. In the event of a breach or threatened breach by Executive of the
provisions of this Article 8, each member of the Company, as appropriate, shall
be entitled to an injunction restraining Executive from directly or indirectly
disclosing, disseminating, lecturing upon, publishing or using such
confidential, trade secret or proprietary information (whether in whole or in
part) and restraining Executive from rendering any services or participating
with any person, firm, corporation, association or other entity to whom such
knowledge or information (whether in whole or in part) has been

                                      -7-

<PAGE>

disclosed, without the posting of a bond or other security. Nothing herein shall
be construed as prohibiting any member of the Company from pursuing any other
equitable or legal remedies available to it for such breach or threatened
breach, including the recovery of damages from Executive. Executive agrees that
each member of the Company, as appropriate, shall be entitled to recover their
respective costs of litigation, expenses and attorney fees incurred in enforcing
this Agreement.

     8.04. The Executive understands and agrees that any violation of this
Article 8 while employed by Company may result in immediate disciplinary action
by Company, including termination of employment pursuant to Section 6.04 hereof.

     8.05. The provisions of this Article 8 shall survive termination of this
Agreement.

                                    ARTICLE 9

                       NONCOMPETITION AND NON-RECRUITMENT

     9.01. Company and Executive recognize and agree that: (i) Executive has
received, and will in the future receive, substantial amounts of highly
confidential and proprietary information concerning Company, their businesses,
customers and employees; (ii) as a consequence of using or associating himself
with Company's name, goodwill, and reputation, Executive will develop personal
and professional relationships with Company's current and prospective customers
and clients; and (iii) provision for non-competition and non-recruitment
obligations by Executive is critical to Company's continued economic well-being
and protection of Company's confidential and proprietary business information.
In light of these considerations, this Article 9 sets forth the terms and
conditions of Executive's obligations of non-competition and non-recruitment
during the Term of and subsequent to the termination of this Agreement and/or
Executive's employment for any reason.

     9.02. Unless the obligation is waived or limited by Company as set forth
herein, Executive agrees that during the term of Executive's employment pursuant
to this Agreement and for a period of twelve (12) months following termination
of Executive's employment for any reason ("the Non-Compete Period"), Executive
will not directly or indirectly (a) solicit or do competitive business with any
person or entity that is or was a customer of Company within the twelve (12)
months prior to the date of termination, or (b) engage within North America in
any similar or related business activity in competition with the Company's
business as conducted at the time of such termination. Among all other
competitive actions that are likewise restricted, Executive during the
Non-Compete Period shall not cause or attempt to cause any existing or
prospective customer, client or account who then has a relationship with Company
for current or prospective business to divert, terminate, limit or in any
adverse manner modify, or fail to enter into any actual or potential business
with Company. As used in this Section, the phrase "Business of the Company"
shall mean the provision of same-day delivery services.

     9.03. At its sole option, Company may, by express written notice to
Executive, waive or reduce the time and/or geographic area in which Executive
cannot engage in competitive activity or the scope of such competitive activity.

                                      -8-

<PAGE>

     9.04.  For a period of eighteen (18) months following termination of
Executive's employment for any reason, Executive will not initiate or actively
participate in any other employer's recruitment or hiring of any of Company's
employees.

     9.05.  Executive agrees that breach by him of the provisions of this
Article 9 will cause Company, as appropriate, irreparable harm that is not fully
remedied by monetary damages. In the event of a breach or threatened breach by
Executive of the provisions of this Article 9, Company, as appropriate, shall be
entitled to an injunction restraining Executive from directly or indirectly
competing or recruiting as prohibited herein, without posting a bond or other
security. Nothing herein shall be construed as prohibiting Company from pursuing
any other equitable or legal remedies available to it for such breach or
threatened breach, including the recovery of damages from Executive. Executive
agrees that Company shall be entitled to recover its respective costs of
litigation and attorney fees incurred in enforcing this Agreement.

     9.06.  The Executive understands and agrees that any violation of this
Article 9 while employed by Company may result in immediate disciplinary action
by Company, including termination of employment pursuant to Section 6.04 hereof.

     9.07.  The obligations contained in this Article 9 shall survive the
termination of this Agreement.

                                   ARTICLE 10

                                   INVENTIONS

     10.01. Executive acknowledges that Inventions, including new and valuable
proprietary concepts, methods, processes, discoveries, and trade secrets (as
defined in the Uniform Trade Secrets Act), may be developed, originated,
authorized, conceived, invented, or made by Executive, either alone or jointly
with others, in the course of Executive's employment by Company. Executive
acknowledges that all such Inventions shall be the exclusive property of
Company, whether or not patentable or copyrightable, and whether or not shown or
described in writing or reduced to practice. Executive agrees to promptly and
fully disclose in writing to Company complete information concerning each and
every such Invention made, developed, perfected, devised, conceived or first
reduced to practice by Executive, either solely or in collaboration with others,
during the period of the Executive's employment hereunder, whether or not during
regular working hours, relating either directly or indirectly to the business,
products, practices or techniques of Company. Executive, to the extent that he
has the legal right to do so, hereby acknowledges that any and all such
Inventions are the property of Company and hereby assigns and agrees to assign
to Company, as directed by the Board of Directors, any and all of Executive's
right, title and interest in and to any and all of such Inventions and to
applications for letters patent or copyrights in all countries and to letter
patent or copyrights granted with respect to such Inventions in all countries.

     10.02. "Inventions" means any invention, improvement, discovery, idea,
device, design, apparatus, practice, process, method or product (whether
patentable or not and including those which may be subject to copyright
protection), and including any trade names, trademarks or service marks

                                      -9-

<PAGE>

or slogans, generated, conceived, or reduced to practice by Executive alone or
in conjunction with others, during or after working hours, while an employee of
Company.

     10.03. The provisions of Section 10.1 shall not apply to any Inventions
meeting the following conditions: (a) such Invention was developed entirely on
Executive's own time; and (b) such Invention was made without the use of any
Company equipment, supplies, facility or trade secret information; and either
(c) such Invention does not result from any work performed by Executive for
Company, or (d) such Invention does not relate (i) directly to the business of
Company or (ii) to Company's actual or demonstrably anticipated research or
development.

     10.04. Executive will keep accurate, complete and timely accounts, notes,
data and records of all Inventions in the manner and form requested by Company.
Such accounts, notes, data and records shall be the property of Company and
shall be retained on Company's premises, and, upon Company's request, Executive
will promptly surrender same to it or, if not previously surrendered upon its
request or otherwise, Executive will surrender the same to Company upon the
conclusion of his employment.

     10.05. Upon request and whether during the period of Executive's employment
hereunder or thereafter, Executive will do all lawful acts, including, but not
limited to, the execution of papers and lawful oaths and the giving of
testimony, that in the opinion of Company, its successors and assigns, may be
necessary or desirable in obtaining, sustaining, reissuing, extending and
enforcing United States and foreign letters patent, including, but not limited
to, design patents, or other applicable registrations, on any and all of such
Inventions, and for perfecting, affirming and recording Company's complete
ownership and title thereto, and to cooperate otherwise in all proceedings and
matters relating thereto. Executive will not be entitled to compensation for
acts performed under this Section 10.5 other than reimbursement for all
reasonable expenses.

     10.06. Executive agrees that breach by him of the provisions of this
Article 10 will cause Company irreparable harm that is not fully remedied by
monetary damages. In the event of a breach or threatened breach by Executive of
the provisions of this Article 10, Company, as appropriate, shall be entitled to
an injunction restraining Executive from directly or indirectly violating the
terms of this Article 10, without posting a bond or other security. Nothing
herein shall be construed as prohibiting Company from pursuing any other
equitable or legal remedies available to it for such breach or threatened
breach, including the recovery of damages from Executive. Executive agrees that
Company shall be entitled to recover its respective costs of litigation and
attorney fees incurred in enforcing this Agreement.

     10.07. The Executive understands and agrees that any violation of this
Article 10 while employed by Company may result in immediate disciplinary action
by Company, including termination of employment pursuant to Section 6.04 hereof.

     10.08. The obligations contained in this Article 10 shall survive the
termination of this Agreement with respect to Inventions conceived or made by
Executive during the period of his employment and shall be binding upon assigns,
executors, administrators and other legal representatives of Executive. For
purposes of this Agreement, any Invention relating to the business of Company on
which Executive files or claims a copyright, or files a patent application,
within one

                                      -10-

<PAGE>

(1) year after termination of his employment with Company, shall be presumed to
cover Inventions conceived by Executive during the term of his employment with
Company, subject to proof to the contrary by good faith, written and duly
corroborated records establishing that such Invention was conceived and made
following termination of employment.

                                   ARTICLE 11

                                CHANGE IN CONTROL

     11.01. If within six (6) months after a Change in Control (as defined
below) or during the Period Pending a Change in Control (as defined below), (i)
Company terminates Executive's employment other than for Cause, or (ii)
Executive voluntarily terminates his employment for Good Reason, Company shall,
in addition to those payments and benefits provided under Section 7.01 above pay
Executive, within fifteen (15) days of such termination, the value of continued
coverage for a period of 18 months under any pension, profit sharing or other
retirement plan maintained by the Company. The value of such coverage under a
tax qualified plan may be provided through a nonqualified pension or profit
sharing plan and shall be determined by adding 18 additional months of age and
service to the Executive's actual age and service at the date of the Executive's
termination of employment and as if the Executive earned compensation during
such 18-month period at the rate in effect during the 12-month period
immediately preceding his termination date. In the case of a defined benefit
pension plan, such value shall include any early retirement subsidies to which
the Executive would have become entitled under the plan and shall be determined
using the actuarial factors set forth in such plan.

     11.02. In the event that any payment, benefit or distribution by or on
behalf of Company to or for the benefit of Executive (whether paid or payable or
distributed or distributable pursuant to the terms of this Agreement or
otherwise, but determined without regard to any additional payments required
under this Section) (the "Payments") is determined by the certified public
accounting firm used by Company prior to Executive's termination to be an
"excess parachute payment" pursuant to Code Section 280G or any successor or
substitute provision of the Code, with the effect that Executive is liable for
the payment of the excise tax described in Code Section 4999 or any successor or
substitute provision of the Code (the "Excise Tax"), then Company and Executive
agree to structure such payments in such manner as to avoid such payments being
determined to be an "excess parachute payment" so long as there is no detriment
to Company.

     11.03. For purposes of the Agreement, a "Change in Control" of the Company
will be deemed to occur as of the first day that any one or more of the
following condition is satisfied:

     (a)  Consummation by the Company of a reorganization, merger or
          consolidation, or sale or other disposition of all or substantially
          all of the stock or assets of the Company or the acquisition of assets
          or stock of another entity (a "Business Combination"), in each case,
          unless immediately following such Business Combination: (i) more than
          forty percent (40%) of the combined voting power of then outstanding
          voting securities entitled to vote generally in the election of
          directors of (x) the corporation resulting from such Business
          Combination (the "Surviving Corporation"), or (y) if applicable, a
          corporation that as a result of such transaction owns Company or all
          or

                                      -11-

<PAGE>

          substantially all of the assets of Company either directly or through
          one or more subsidiaries (the "Parent Corporation"), is held, directly
          or indirectly by the shareholders of Company, as appropriate, prior to
          such Business Combination, and (ii) at least thirty percent (30%) of
          the members of the board of directors of the Parent Corporation (or,
          if there is no Parent Corporation, the Surviving Corporation) are
          individuals who, as of the date of the Agreement, constitute the Board
          of Directors of Company, (the "Incumbent Board"), provided, however,
          that any individual becoming a director subsequent to the date hereof
          whose election, or nomination for election by the Company's
          stockholders, was approved by a vote of at least a majority of the
          directors then comprising the Incumbent Board will be considered as
          though such individual were a member of the Incumbent Board; or

     (b)  Approval by the stockholders of Company of a complete liquidation or
          dissolution of Company.

     However, in no event will a Change in Control be deemed to have occurred,
with respect to Executive, if Executive is part of a purchasing group that
consummates the Change in Control transaction. Executive will be deemed "part of
a purchasing group" for purposes of the preceding sentence if Executive is an
equity participant in the purchasing company or group (except: (i) passive
ownership of less than five percent (5%) of the stock of the purchasing company;
or (ii) ownership of equity participation in the purchasing company or group
that is otherwise not significant, as determined prior to the Change in Control
by a majority of the nonemployee continuing directors).

     11.04. For purposes of this Agreement, the "Period Pending a Change in
Control" will be the three-month period immediately preceding a Change in
Control.

                                   ARTICLE 12

                                  MISCELLANEOUS

     12.01. Governing Law. This Agreement shall be governed and construed
according to the laws of the State of Minnesota without regard to conflicts of
law provisions, except insofar as the corporate laws of Delaware may be
applicable.

     12.02. Successors. This Agreement is personal to Executive and Executive
may not assign or transfer any part of his rights or duties hereunder, or any
compensation due to him hereunder, to any other person or entity. This Agreement
may be assigned by Company, and either may require any successors or assigns to
expressly assume and agree to perform Company's obligations under this
Agreement.

     12.03. No Waiver. No failure or delay on the part of Company or Executive
in enforcing or exercising any right or remedy hereunder shall operate as a
waiver thereof.

     12.04. Modification. This Agreement supersedes and replaces any and all
prior oral or written understandings, if any, between the parties relating to
the subject matter of this Agreement, which are hereby revoked. The parties
agree that this Agreement, together with any option or

                                      -12-

<PAGE>

warrant agreement entered into between the parties pursuant to Section 4.05
hereof (a) is the entire understanding and agreement between the parties and (b)
is the complete and exclusive statement of the terms and conditions thereof, and
there are no other written or oral agreements in regard to the subject matter of
this Agreement. This Agreement shall not be changed or modified except by a
written document signed by the parties hereto.

     12.05. Severability and Blue Penciling. To the extent that any provision of
this Agreement shall be determined to be invalid or unenforceable as written,
the validity and enforceability of the remainder of such provision and of this
Agreement shall be unaffected. If any particular provision of this Agreement
shall be adjudicated to be invalid or unenforceable, Company and Executive
specifically authorize the tribunal making such determination to edit the
invalid or unenforceable provision to allow this Agreement, and the provisions
thereof, to be valid and enforceable to the fullest extent allowed by law or
public policy.

     12.06. Insurance. For the period from the date hereof through at least the
tenth anniversary of Executive's termination of employment from Company, Company
agrees to maintain Executive as an insured party on all directors' and officers'
insurance maintained by the Company for the benefit of its directors and
officers on at least the same basis as all other covered individuals and provide
Executive with at least the same corporate indemnification as its officers;
provided, however, that if by the terms of any such policy Executive
automatically remains covered for acts or omissions during the term of his
employment by Company, Company shall not be required to separately maintain
Executive as an insured party if said maintenance would require the payment of
premiums for such coverage.

     12.07. Attorneys Fees. Executive shall be solely responsible for and pay
all attorneys fees, costs and expenses incurred by Executive in connection with
the negotiation, execution and delivery of this Agreement. All reasonable costs
and expenses (including fees and disbursements of counsel) incurred by Executive
in seeking to interpret this Agreement or enforce rights pursuant to this
Agreement shall be paid on behalf of or reimbursed to Executive promptly by
Company, if Executive is successful in asserting such rights up to $5,000.

     12.08. Effect on Other Obligations. Payments and benefits herein provided
to be paid Executive by Company shall be made without regard to and in addition
to any other payments or benefits required to be paid Executive at any time
hereafter under the terms of any other agreement between Executive and Company
or under any other policy of Company relating to compensation, or retirement or
other benefits. Except for the provisions of Section 7.01(a), payments or
benefits provided Executive hereunder shall be reduced by any amount Executive
may earn or receive from employment with another employer.

     12.09. Notice. Any notice required to be given, served or delivered to any
of the parties hereto shall be sufficient if it is in writing and sent by
certified mail with proper postage prepaid or by overnight delivery service
addressed as indicated in the preamble to this Agreement (or to any other
address which either party shall, by notice given in accordance herewith,
direct). Any party may change the person and/or address to whom the other
parties must give notice under this Section by giving such other parties written
notice of such change, in accordance with the procedures described above.

                                      -13-

<PAGE>

     12.10. Counterparts. This Agreement may be executed in one or more
counterparts, all of which together shall constitute but one Agreement.

     IN WITNESS WHEREOF the following parties have executed the above instrument
the day and year first above written.

                                          VELOCITY EXPRESS CORPORATION

                                          By:___________________________________
                                              Its: _____________________________

                                          ______________________________________
                                          Jeffry J. Parell

                                      -14-

<PAGE>

                                    EXHIBIT A

                           DUTIES AND RESPONSIBILITIES

     As President and Chief Executive Officer of the Company, Executive shall,
under the direction and control of the Board of Directors, have the following
duties and responsibilities:

     1.   Direct the day-to-day operation of the business of the Company and its
          subsidiaries, and their respective businesses, as a whole;

     2.   Direct and manage certain of the Company's executive staff (both
          executive officers of the Company and its subsidiaries);

     3.   Enter into contracts on behalf of the Company and its subsidiaries,
          except where such contracts are required by statute to have prior
          Board or shareholder approval, and except as may be limited by the
          Board of Directors;

     4.   Implement all strategic and other business plans and objectives of the
          Company as determined by Board of Directors;

     5.   Enforce Company policies, rules and procedures;

     6.   Employ, direct and terminate Company personnel required for the
          performance of the foregoing duties; and

     7.   Perform such other functions as necessary or appropriate to carry out
          the directives of the Board of Directors, and as are consistent with
          Executive's position and title.

                                      -15-

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