Document:

Exhibit 10.1

REGISTRATION RIGHTS
AGREEMENT

THIS REGISTRATION RIGHTS AGREEMENT is made and entered into as of
August 12, 2002 by and between Intraware, Inc., a Delaware corporation (“Company”),
and the Buyer, as defined in the Common Stock Purchase Agreement dated August
12, 2002 (the “Purchase Agreement”), by and between the Company and the
Buyer.

SECTION 1.           DEFINITIONS.  Capitalized terms used herein without
definition have their respective meanings set forth in the Purchase
Agreement.  As used in this Agreement,
the following terms have the following meanings:

“Business
Day” means each Monday, Tuesday, Wednesday, Thursday and Friday that
is not a day on which banking institutions in The City of New York are
authorized or obligated by law or executive order to close.

“Effectiveness
Period” shall mean the period of time between the Filing Deadline
Date and the Effectiveness Termination Date.

“Common
Stock” means the shares of common stock, $0.0001 par value, of the
Company.

“Company”
has the meaning set forth in the first paragraph of this Agreement and also
includes the Company’s successors.

“Deferral
Notice” has the meaning set forth in Section 3(f) hereof.

“Deferral
Period” has the meaning set forth in Section 3(f) hereof.

“Effectiveness
Termination Date” means the date after which the Shares, then held
by the Buyer, may be sold within a three month period pursuant to Rule 144 of
the Securities Act.

“Closing” has the meaning set forth in the
Purchase Agreement.

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

“Filing
Deadline Date” has the meaning set forth in Section 2(a) hereof.

“Holder”
means the Buyer, any transferee or assignee thereof to whom the Buyer assigns
its rights under this Agreement and who agrees to become bound by the
provisions of this Agreement in accordance with Section 7 and any transferee or
assignee thereof to whom a transferee or assignee assigns its rights under this
Agreement and who agrees to become bound by the provisions of this Agreement in
accordance with Section 7.

“Losses”
has the meaning set forth in Section 6(a) hereof.

 

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“Material
Event” has the meaning set forth in Section 3(f) hereof.

“Purchase
Agreement” has the meaning set forth the first paragraph of this
Agreement.

“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 Securities 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.

“Registrable
Securities” means the Common Stock purchased by the Buyer under the
Purchase Agreement, and any security issued with respect thereto upon any stock
dividend, split or similar event.

“Registration
Statement” means the registration statement of the Company that
covers any of the Registrable Securities pursuant to the provisions of this
Agreement including the Prospectus, amendments and supplements to such
registration statement, including post-effective amendments, all exhibits, and
all materials incorporated by reference or explicitly deemed to be incorporated
by reference in such registration statement.

“SEC”
means the Securities and Exchange Commission.

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

SECTION 2.           SHELF
REGISTRATION.

(a)           The Company shall prepare or cause to be
prepared, and use its reasonable best efforts to file or to cause to be filed
with the SEC, by the date (the “Filing Deadline Date”) one (1) year after
the Closing, a Registration Statement for an offering to be made on a delayed
or continuous basis pursuant to Rule 415 of the Securities Act registering the
resale from time to time by the Holder of the Registrable Securities. 
The Registration Statement shall be on an appropriate form permitting
registration of such Registrable Securities for resale by the Holder in
accordance with the methods of distribution elected by the Holder and set forth
in the Registration Statement.  The
Company shall use commercially reasonable efforts to cause the Registration
Statement to be declared effective under the Securities Act as promptly as is
practicable and to keep the Registration Statement continuously effective under
the Securities Act until the expiration of the Effectiveness Termination
Date.  At the time the Registration
Statement is declared effective, the Holder shall be named as the selling
securityholder in the Registration Statement and the related Prospectus in such
a manner as to permit the Holder to deliver such Prospectus to purchasers of
Registrable Securities in accordance with applicable law.

(b)           If the Company proposes to register
any of its securities under the Securities Act in connection with the public
offering of such securities solely for cash (other than a registration

 

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on Form S-4, Form S-8, or any successor or similar
forms, it will promptly, but not later than twenty-one (21) days before the
anticipated date of filing such Registration Statement, give written notice to
the Holder.  Upon the written request of
the Holder made within fourteen (14) days after the receipt of any such notice (which
request shall specify the Registrable Securities intended to be disposed of by
the Holder and the intended method of distribution thereof), the Company will
use its reasonable best efforts to effect the registration under the Securities
Act of all Registrable Securities which the Company has been requested to
register by the Holder 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 Holder 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 Section 2(b)
will not be deemed to limit or otherwise restrict the rights of the Holder
under Section 2(a) of this Agreement.

(c)           The
Company shall supplement and amend the Registration Statement if required by
the rules, regulations or instructions applicable to the registration form used
by the Company for such Registration Statement, if required by the Securities
Act or, to the extent to which the Company does not reasonably object, as
reasonably requested by the Holder.

(d)           The
Holder agrees that if it wishes to sell Registrable Securities pursuant to the
Registration Statement and related Prospectus, it will do so only in accordance
with this Agreement.

SECTION 3.          
REGISTRATION PROCEDURES.  In connection
with the registration obligations of the Company under Section 2 hereof,
the Company shall:

(a)           Until
the Effectiveness Termination Date, prepare and use its reasonable best efforts
to file with the SEC such amendments and post-effective amendments to the
Registration Statement as may be necessary to keep such Registration Statement
continuously effective for the applicable period specified in Section 2(a); use
its reasonable best efforts to cause the related Prospectus to be supplemented
by any required Prospectus supplement, and as so supplemented to be filed
pursuant to Rule 424 (or any similar provisions then in force) under the
Securities Act; and use its reasonable best efforts to comply with the
provisions of the Securities Act applicable to it with respect to the
disposition of all securities covered by such Registration Statement until the
Effectiveness Termination Date in accordance with the intended methods of
disposition by the sellers thereof set forth in such Registration Statement as
so amended or such Prospectus as so supplemented.

(b)           As
promptly as practicable give notice to the Holder (i) when the
Registration Statement or any post-effective amendment has been declared
effective, (ii) of the issuance by the SEC or any other federal or state
governmental authority of any stop order suspending the

 

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effectiveness
of the Registration Statement or the initiation or threatening of any
proceedings for that purpose, (iii) 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, (iv) of the occurrence of (but not the nature of or details
concerning) a Material Event and (v) 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(f)), state that it constitutes a Deferral
Notice, in which event the provisions of Section 3(f) shall apply.

(c)           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 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.

(d)           During
the Effectiveness Period, deliver to the 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 the 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 the 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.

(e)           Prior
to any public offering of the Registrable Securities pursuant to the
Registration Statement, register or qualify or cooperate with the Holder 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 the Holder reasonably requests in writing; prior to any public
offering of the Registrable Securities pursuant to the Registration Statement,
keep each such registration or qualification (or exemption therefrom) effective
during the Effectiveness Period in connection with the 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, that the Company will not be
required to (i) 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 (ii) 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.

(f)            Upon
(A) the issuance by the SEC of a stop order suspending the effectiveness of the
Registration Statement or the initiation of proceedings with respect to the
Registration Statement under Section 8(d) or 8(e) of the Securities 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

 

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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, 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 Holder that the availability of the Registration Statement is suspended (a
“Deferral
Notice”) and, upon receipt of any Deferral Notice, the Holder agrees
not to sell any Registrable Securities pursuant to the Registration Statement
until the 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.

SECTION 4.          
HOLDER’S OBLIGATIONS.  The 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 the
Holder has furnished the Company with all information required to be disclosed
in order to make the information previously furnished to the Company by the
Holder not misleading and any other information regarding the 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 the Holder shall constitute a representation and
warranty by the Holder that the information relating to the Holder and

 

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its plan
of distribution is as set forth in the Prospectus delivered by the 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 the 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 the 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.

SECTION 5.           REGISTRATION
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). 
Notwithstanding the provisions of this Section 5, the 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.

SECTION 6.           INDEMNIFICATION.

(a)           INDEMNIFICATION
BY THE COMPANY.  The Company shall
indemnify and hold harmless the Holder and each person, if any, who controls
the Holder (within the meaning of either Section 15 of the Securities Act or
Section 20 of the Exchange Act) from and against any losses, liabilities,
claims, damages and expenses (including, without limitation, any legal or other
expenses reasonably incurred in connection with defending or investigating any
such action or claim) (collectively, “Losses”), arising out of or based upon any
untrue statement or alleged untrue statement of a material fact contained in
the Registration Statement or Prospectus or in any amendment or supplement
thereto or in any preliminary prospectus, or arising out of or based upon any
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading; provided,
however, that the Company shall not be liable to the Holder in any such
case to the extent that any such Losses arise out of or are based upon an
untrue statement or alleged untrue statement contained in or omission or
alleged omission from any of such documents in reliance upon and in conformity
with any of the information relating to the Holder furnished to the Company in
writing by the Holder expressly for use therein; provided  further
that the indemnification contained in this paragraph shall not inure to the
benefit of the Holder of Registrable Securities (or to the benefit of any
person controlling the Holder ) on account of any such Losses arising out of or
based upon an untrue statement or alleged untrue statement or omission or
alleged omission made in any preliminary prospectus to the extent that a
prospectus relating to such Registrable Securities was required to be delivered
by the Holder under the Securities Act, if either (A) (i) the Holder
failed to send or deliver a copy of the Prospectus with or prior to the
delivery of written confirmation of the sale by the Holder to the person
asserting the claim from which such Losses arise and (ii) the Prospectus
would have corrected such untrue

 

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statement
or alleged untrue statement or such omission or alleged omission, or
(B) (x) such untrue statement or alleged untrue statement, omission
or alleged omission is corrected in an amendment or supplement to the
Prospectus and (y) having previously been furnished by or on behalf of the
Company with copies of the Prospectus as so amended or supplemented, the Holder
thereafter fails to deliver such Prospectus as so amended or supplemented, with
or prior to the delivery of written confirmation of the sale of a Registrable Security
to the person asserting the claim from which such Losses arise.

(b)           INDEMNIFICATION
BY HOLDER.  The Holder agrees to
indemnify and hold harmless the Company and its respective directors and
officers, and each person, if any, who controls the Company (within the meaning
of either Section 15 of the Securities Act or Section 20 of the Exchange Act),
from and against all Losses arising out of or based upon any untrue statement
or alleged untrue statement of a material fact contained in any Registration Statement
or Prospectus or in any amendment or supplement thereto or in any preliminary
prospectus, or arising out of or based upon any omission or alleged omission to
state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading, to the extent, but only to the
extent, that such untrue statement or alleged untrue statement or omission or
alleged omission was made in reliance upon and in conformity with information
furnished to the Company in writing by the Holder.

(c)           CONDUCT
OF INDEMNIFICATION PROCEEDINGS.  In case
any proceeding (including any governmental investigation) shall be instituted
involving any person in respect of which indemnity may be sought pursuant to
either of the two preceding paragraphs, such person (the “indemnified party”) shall
promptly notify the person against whom such indemnity may be sought (the “indemnifying
party”) in writing and the indemnifying party, upon request of the
indemnified party, shall retain counsel reasonably satisfactory to the
indemnified party to represent the indemnified party and any others the
indemnifying party may designate in such proceeding and shall pay the
reasonable fees and disbursements of such counsel related to such proceeding.  In any such proceeding, any indemnified
party shall have the right to retain its own counsel, but the fees and expenses
of such counsel shall be at the expense of such indemnified party unless
(i) the indemnifying party and the indemnified party shall have mutually
agreed to the retention of such counsel or (ii) the named parties to any
such proceeding (including any impleaded parties) include both the indemnifying
party and the indemnified party and representation of both parties by the same
counsel would be inappropriate due to actual or potential differing interests
between them.  It is understood that the
indemnifying party shall not, in respect of the legal expenses of any
indemnified party in connection with any proceeding or related proceedings in
the same jurisdiction, be liable for the fees and expenses of more than one
separate firm (in addition to any local counsel) for all indemnified parties,
and that all such fees and expenses shall be reimbursed as they are
incurred.  Such separate firm shall be
designated in writing by, in the case of parties indemnified pursuant to
Section 6(a), the Holder and, in the case of parties indemnified pursuant to
Section 6(b), the Company.  The
indemnifying party shall not be liable for any settlement of any proceeding
effected without its written consent, but if settled with such consent or if
there be a final judgment for the plaintiff, the indemnifying party agrees to
indemnify the indemnified party from and against any loss or liability by
reason of such settlement or judgment.  No indemnifying party shall, without the prior written consent of
the indemnified party, effect any settlement of any pending

 

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or
threatened proceeding in respect of which any indemnified party is or could
have been a party and indemnity could have been sought hereunder by such
indemnified party, unless such settlement includes an unconditional release of
such indemnified party from all liability on claims that are the subject matter
of such proceeding and does not include a statement as to, or an admission of,
fault, culpability or a failure to act by or on behalf of an indemnified party.

(d)           CONTRIBUTION.  To the extent that the indemnification
provided for in this Section 6 is unavailable to an indemnified party under
Section 6(a) or 6(b) hereof in respect of any Losses or is insufficient to hold
such indemnified party harmless, then each applicable indemnifying party, in
lieu of indemnifying such indemnified party, shall contribute to the amount
paid or payable by such indemnified party as a result of such Losses
(i) in such proportion as is appropriate to reflect the relative benefits
received by the indemnifying party or parties on the one hand and the
indemnified party or parties on the other hand or (ii) if the allocation
provided in clause (i) above is not permitted by applicable law, in such
proportion as is appropriate to reflect not only the relative benefits referred
to in clause (i) above but also to the relative fault of the indemnifying
party or parties on the one hand and of the indemnified party or parties on the
other hand in connection with the statements or omissions that resulted in such
Losses, as well as any other relevant equitable considerations.  Benefits received by the Holder shall be
deemed to be equal to the value of receiving Registrable Securities that are
registered under the Securities Act. 
The relative fault of the Holder on the one hand and the Company on the
other hand shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by
the Holder or by the Company, and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or
omission.  Benefits received by any
underwriter shall be deemed to be equal to the total underwriting discounts and
commissions, as set forth on the cover page of the Prospectus forming a part of
the Registration Statement which resulted in such Losses.

The parties hereto agree that it would not be just and equitable if
contribution pursuant to this Section 6(d) were determined by pro rata
allocation or by any other method or allocation that does not take into account
the equitable considerations referred to in the immediately preceding
paragraph.  The amount paid or payable
by an indemnified party as a result of the Losses referred to in the
immediately preceding paragraph shall be deemed to include, subject to the
limitations set forth above, any legal or other expenses reasonably incurred by
such indemnified party in connection with investigating or defending any such
action or claim.  Notwithstanding this
Section 6(d), an indemnifying party that is a selling Holder of Registrable
Securities shall not be required to contribute any amount in excess of the
amount by which the net proceeds received by such indemnifying party from
Registrable Securities sold and distributed to the public exceeds the amount of
any damages that such indemnifying party has otherwise been required to pay by
reason of such untrue or alleged untrue statement or omission or alleged
omission.  No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation.

(e)           The
indemnity and contribution provisions contained in this Section 6 shall remain
operative and in full force and effect regardless of (i) any termination
of this Agreement, (ii) any investigation made by or on behalf of the
Holder or any person controlling the Holder, or the

 

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 Company, or the Company’s officers or directors
or any person controlling the Company and (iii) the sale of any
Registrable Securities by the Holder.

SECTION 7.           ASSIGNMENT OF REGISTRATION
RIGHTS.  The rights under this Agreement
shall be automatically assignable by the Holder to any transferee of all of the
Registrable Securities if: (i) such assignment is pursuant to a merger,
consolidation or sale of substantially all of the assets of the Holder; (ii)
the 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; (iii) the Company is, within a
reasonable time after such transfer or assignment, furnished with written
notice of the name and address of such transferee or assignee, (iv) 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; (v) at or before the time the Company
receives the written notice contemplated by clause (iii) of this sentence the
transferee or assignee provides the Company with a writing agreeing to be bound
by all of the provisions contained herein; and (vi) such transfer shall have
been made in accordance with the applicable requirements of the Purchase
Agreement.

SECTION 8.           MISCELLANEOUS.

(a)           AMENDMENTS
AND WAIVERS.  The provisions of this
Agreement, including the provisions of this sentence, may not be amended,
modified or supplemented, and waivers or consents to departures from the
provisions hereof may not be given, unless the Company has obtained the written
consent of the Holder.  The 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 8(b), 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 the Holder.

(b)           NOTICES.  All notices and other communications
provided for or permitted hereunder shall be made in writing by hand delivery,
by telecopier, by courier guaranteeing overnight delivery or by first-class
mail, return receipt requested, and shall be deemed given (i) when made,
if made by hand delivery, (ii) upon confirmation, if made by telecopier,
(iii) one (1) Business Day after being deposited with such courier, if
made by overnight courier or (iv) on the date indicated on the notice of
receipt, if made by first-class mail, to the parties as follows:

(1)           if
to the Holder, at the most recent location for the Holder provided to the
Company;

(2)           if
to the Company, to:

                                                                        Intraware,
Inc.
                                                                        25
Orinda Way
                                                                        Orinda,
CA 94563
                                                                        Attention:  John J. Moss, Vice President and General
Counsel

 

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with a copy to:

Wilson Sonsini
Goodrich & Rosati, Professional Corporation

650
Page Mill Road

Palo
Alto, CA  94304

Attention: John Donahue,
Esq. or Adam R. Dolinko, Esq.

Telecopy No.:  (650) 493-6811

(c)           ADDITIONAL
PARTIES.  The parties hereto agree that
additional holders of securities 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 counter-part of this Agreement, and upon execution by
such additional party and by the Company, shall be considered a Holder for
purposes of this Agreement.

(d)           SUCCESSORS
AND ASSIGNS.  Except as set forth in
Section 7 above, this Agreement shall not inure to the benefit of any other
person other than the parties hereto, except a successor of the Company.

(e)           COUNTERPARTS.  This Agreement may be executed in any number
of counterparts and by the parties hereto in separate counterparts, each of
which when so executed shall be deemed to be original and all of which taken
together shall constitute one and the same agreement.

(f)            HEADINGS.  The headings in this Agreement are for
convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

(g)           GOVERNING
LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF CALIFORNIA WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF
LAWS.

(h)           JURISDICTION.  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 California or,
if it has or can acquire jurisdiction, in the United States District Court for
the Northern District of California, 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.

(i)            SEVERABILITY.  If any term provision, covenant or
restriction of this Agreement is held to be invalid, illegal, void or
unenforceable, the remainder of the terms,

 

10

 

provisions,
covenants and restrictions set forth herein shall remain in full force and
effect and shall in no way be affected, impaired or invalidated thereby, and
the parties hereto shall use their best efforts to find and employ an
alternative means to achieve the same or substantially the same result as that
contemplated by such term, provision, covenant or restriction, it being
intended that all of the rights and privileges of the parties shall be
enforceable to the fullest extent permitted by law.

(j)            ENTIRE
AGREEMENT.  This Agreement is intended
by the parties as a final expression of their agreement and is intended to be a
complete and exclusive statement of the agreement and understanding of the
parties hereto in respect of the subject matter contained herein and the
registration rights granted by the Company with respect to the Registrable
Securities.  This Agreement supersedes
all prior agreements and undertakings among the parties with respect to such
registration rights.  No party hereto
shall have any rights, duties or obligations other than those specifically set
forth in this Agreement.

(k)           TERMINATION.  This Agreement and the obligations of the
parties hereunder shall terminate as of the Effectiveness Termination Date,
except for Section 6 hereof which shall remain in effect in accordance
with its terms after the Effectiveness Termination Date.

 

 

(Remainder
of page left intentionally blank.)

 

11

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

 

	
   

  	
  INTRAWARE,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ZOMAX
  INCORPORATED

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

 

 

 

 

 

 

 

[Signature Page to Registration
Rights Agreement]

 

 

12Exhibit 10.2

 

COMMON
STOCK PURCHASE AGREEMENT

COMMON STOCK PURCHASE AGREEMENT (the “Agreement”), dated as of
August 12, 2002, by and between Intraware, Inc., a Delaware corporation
(the “Company”),
and Zomax Incorporated, a Minnesota corporation (the “Buyer”).

WHEREAS:

A.            The Company and the
Buyer have executed that certain Strategic Alliance Agreement dated August 12,
2002 for their cooperative provision to customers of electronic software
delivery and management services.

B.            The Company and the
Buyer are executing and delivering this Agreement in reliance upon the
exemption from securities registration afforded by Rule 506 of
Regulation D (“Regulation D”) as promulgated by the
United States Securities and Exchange Commission (the “SEC”) under the Securities
Act of 1933, as amended (the “1933 Act”);

B.            The Buyer wishes to
purchase, upon the terms and conditions stated in this Agreement, 6,097,561
shares of Common Stock of the Company (the “Shares”); and

C.            Contemporaneously
with the execution and delivery of this Agreement, the parties hereto are
executing and delivering a Registration Rights Agreement substantially in the
form attached hereto as Exhibit A (the “Registration Rights Agreement”)
pursuant to which the Company has agreed to provide certain registration rights
with respect to the Shares under the 1933 Act and the rules and regulations
promulgated thereunder, and applicable state securities laws.

NOW
THEREFORE, the
Company and the Buyer hereby agree as follows:

1.             PURCHASE AND SALE OF SHARES.

(a)           Purchase
of Shares.  Subject to the
satisfaction (or waiver) of the conditions set forth in Sections 5 and 6
below, the Company shall issue and sell to the Buyer and the Buyer agrees to
purchase from the Company the Shares (the “Closing”). 
The purchase price (the “Purchase Price”) of each Share is $0.82 and
the aggregate Purchase Price at the Closing is $5,000,000.00.

(b)           Closing
Date.  The date and time of the
Closing (the “Closing Date”) shall be 5:00 a.m. Pacific Time, on
August 12, 2002, subject to satisfaction or waiver of the conditions to
the Closing set forth in Sections 5 and 6 below (or such other earlier
date as is mutually agreed to in writing by the Company and the Buyer).  The Closing shall occur on the Closing Date
at the offices of Wilson Sonsini Goodrich & Rosati, 650 Page Mill
Road, Palo Alto, CA 94304.

(c)           Form
of Payment.  On the Closing Date,
(i) the Buyer shall pay the aggregate Purchase Price to the Company for
the Shares to be issued and sold to the Buyer at the Closing, by wire transfer
of immediately available funds in accordance with the Company’s written wire
instructions, and (ii) the Company shall deliver to the Company’s transfer
agent instructions to issue the stock certificate (the “Stock Certificate”)
representing the number of the Shares.

 

-1-

 

2.             BUYER’S
REPRESENTATIONS AND WARRANTIES.

The Buyer represents and warrants that:

(a)           Investment
Purpose.  The Buyer is acquiring the
Shares for its own account for investment only and not with a view towards, or
for resale in connection with, the public sale or distribution thereof, except
pursuant to sales registered or exempted under the 1933 Act.

(b)           Accredited
Investor Status.  The Buyer is an
“accredited investor” as that term is defined in Rule 501(a) of
Regulation D.

(c)           Reliance
on Exemptions.  The Buyer
understands that the Shares are being offered and sold to it in reliance on
specific exemptions from the registration requirements of United States federal
and state securities laws and that the Company is relying in part upon the
truth and accuracy of, and the Buyer’s compliance with, the representations,
warranties, agreements, acknowledgments and understandings of the Buyer set
forth herein in order to determine the availability of such exemptions and the
eligibility of the Buyer to acquire the Shares.

(d)           Information.  The Buyer and its advisors, if any, have
been furnished with all materials relating to the business, finances and
operations of the Company and materials relating to the offer and sale of the
Shares which have been requested by the Buyer. 
The Buyer and its advisors, if any, have been afforded the opportunity
to ask questions of the Company. 
Neither such inquiries nor any other due diligence investigations conducted
by the Buyer or its advisors, if any, or its representatives shall modify,
amend or affect the Buyer’s right to rely on the Company’s representations and
warranties contained herein.  The Buyer
understands that its investment in the Shares involves a high degree of
risk.  The Buyer has sought such
accounting, legal and tax advice as it has considered necessary to make an
informed investment decision with respect to its acquisition of the Shares.

(e)           No
Governmental Review.  The Buyer
understands that no United States federal or state agency or any other
government or governmental agency has passed on or made any recommendation or
endorsement of the Shares or the fairness or suitability of the investment in
the Shares nor have such authorities passed upon or endorsed the merits of the
offering of the Shares.

(f)            Transfer
or Resale.  The Buyer understands
that except as provided in the Registration Rights Agreement: (i) the
Shares have not been and are not being registered under the 1933 Act or any
state securities laws, and may not be offered for sale, sold, assigned or
transferred unless (A) subsequently registered thereunder, (B) the
Buyer shall have delivered to the Company an opinion of counsel, in a generally
acceptable form, to the effect that such Shares to be sold, assigned or
transferred may be sold, assigned or transferred pursuant to an exemption from
such registration, or (C) the Buyer provides the Company with reasonable
assurance that such Shares can be sold, assigned or transferred pursuant to
Rule 144 promulgated under the 1933 Act, as amended, (or a successor rule
thereto) (“Rule 144”); (ii) any sale of the Shares made in
reliance on Rule 144 may be made only in accordance with the terms of
Rule 144 and further, if Rule 144 is not applicable, any resale of
the Shares under circumstances in which the seller (or the person through whom
the sale is made) may be deemed to be an underwriter (as that term is defined
in the 1933 Act) may require compliance with some other exemption under the
1933 Act or the rules and regulations of the SEC

 

-2-

 

thereunder;
and (iii) neither the Company nor any other person is under any obligation
to register the Shares for resale under the 1933 Act or any state securities
laws or to comply with the terms and conditions of any resale exemption
thereunder.

(g)           Legends.  The Buyer understands that until such time
as the sale of the Shares have been registered under the 1933 Act as
contemplated by the Registration Rights Agreement, the Stock Certificate
representing the Shares shall bear a restrictive legend in substantially the
following form (and a stop-transfer order may be placed against transfer of
such Stock Certificate):

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 SECURITIES UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR APPLICABLE STATE SECURITIES LAWS, OR (B) AN OPINION OF COUNSEL, IN
A GENERALLY 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 without such legend to the holder of the Shares upon which it is
stamped, if, unless otherwise required by state securities laws, (i) such
Shares are registered for sale under the 1933 Act, (ii) in connection with
a sale, assignment or other transfer, such holder provides the Company with an
opinion of counsel, in a generally acceptable form, to the effect that such
sale, assignment or transfer of the Shares may be made without registration
under the 1933 Act, or (iii) such holder provides the Company with
reasonable assurance that the Shares can be sold, assigned or transferred
pursuant to Rule 144 without any restriction as to the number of
securities acquired as of a particular date that can then be immediately sold.

(h)           Validity;
Enforcement.  This Agreement has
been duly and validly authorized, executed and delivered on behalf of the Buyer
and is a valid and binding agreement of the Buyer enforceable against the Buyer
in accordance with its terms, subject as to enforceability to general
principles of equity and to applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation and other similar laws relating to, or affecting
generally, the enforcement of applicable creditors’ rights and remedies.

(i)            Residency.  The Buyer’s address is 5353 Nathan Lane,
Plymouth, Minnesota 55442.

3.             REPRESENTATIONS
AND WARRANTIES OF THE COMPANY.

The Company represents and warrants to the Buyer,
except as set forth in the Company’s Disclosure Schedules which are attached
hereto, that:

 

-3-

 

(a)           Organization
and Qualification.  The Company and
its “Subsidiaries”
(which for purposes of this Agreement means any entity in which the Company,
directly or indirectly, owns 50% or more of the capital stock or holds a
majority or similar interest) are corporations duly organized and validly
existing in good standing under the laws of the jurisdiction in which they are
incorporated, and have the requisite corporate 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 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 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
agreements and instruments to be entered into in connection herewith, or on the
authority or ability of the Company to perform its obligations under the
Transaction Documents (as defined below).

(b)           Authorization;
Enforcement; Validity.  The Company
has the requisite corporate power and authority to enter into and perform this
Agreement and the Registration Rights Agreement, (together, the “Transaction
Documents”) and to file, and perform its obligations under, the
Transaction Documents, and to issue the Shares in accordance with the terms
hereof and thereof.  The execution and
delivery of the Transaction Documents by the Company and the consummation by
the Company of the transactions contemplated hereby and thereby, including
without limitation the issuance of the Shares, 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 Transaction Documents  have been duly executed and delivered by the
Company, and constitute the 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.

(c)           Capitalization.  The authorized capital stock of the Company
consists of (i) 250,000,000 shares of common stock, of which (A) 45,225,034
shares were issued and outstanding as of July 31, 2002 and (B) 14,230,014
shares were reserved for issuance upon the exercise or conversion, as the case
may be, of outstanding options, warrants or other convertible securities as
of  July 31, 2002 and (ii) 10,000,000
shares of convertible redeemable preferred stock, of which 1,491,881 shares
were issued and outstanding as of July 31, 2002 and none were  reserved for issuance upon the exercise or
conversion, as the case may be, of outstanding options, warrants or other
convertible securities.  All issued and
outstanding shares of the Company’s capital stock have been duly authorized and
validly issued, and are fully paid and nonassessable.  Except as set forth herein or the Company SEC Documents, there
are no (i) outstanding rights (including, without limitation, preemptive
rights), warrants or options to acquire, or instruments convertible into or
exchangeable for, any unissued shares of capital stock or other equity interest
in the Company, or any contract, commitment, agreement, understanding or
arrangement of any kind to which the Company is a party and relating to the
issuance or sale of any capital stock of the Company; or (ii) obligations of
the Company to purchase redeem or otherwise acquire any of its outstanding
capital stock or any interest therein or to pay any dividend or make any other
distribution in respect thereof.

 

-4-

 

There are no antidilution or price adjustment
provisions contained in the terms governing any outstanding security of the
Company that will be triggered by the issuance of the Shares.

(d)           Issuance
of Shares.  The Shares are duly
authorized and, upon issuance at the Closing, shall be (i) validly issued,
fully paid and non-assessable, and (ii) free from all taxes, liens and
charges with respect to the issue thereof. 
The issuance by the Company of the Shares is exempt from registration
under the 1933 Act.  The issuance, sale
and delivery of the Shares in accordance with the terms hereof will not be
subject to preemptive rights or other similar rights of stockholders of the Company.

(e)           No
Conflicts.  Except as set forth in
Section 3(d) of the Company’s Disclosure Schedules hereto, the execution,
delivery and performance of the Transaction Documents by the Company and the
consummation by the Company of the transactions contemplated hereby and thereby
will not (i) 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 or
(ii) conflict with, or constitute a default (or an event which with notice or
lapse of time or both would become a default) under, or give to others any
rights of termination, amendment, acceleration or cancellation of, any material
agreement filed as an Exhibit to any of the Company’s SEC Documents (as defined
below), or (iii) 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 Stock 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, or (iv) result in the
creation or imposition of any lien, encumbrance, claim, security interest or
restriction whatsoever upon any of the material properties or assets of the
Company.

(f)            Consents.  Except for the filing of the Registration
Statement (as defined in the Registration Rights Agreement) with the SEC, and
except as provided in Sections 4(b) and 6(c) of this Agreement, 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 Transaction Documents.  All consents, authorizations, orders,
filings and registrations that the Company is required to obtain prior to
issuing the Shares 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.

(g)           No
General Solicitation; Placement Agent. 
Neither the Company, nor any of its affiliates, nor any person acting on
its or their behalf, has engaged in any form of general solicitation or general
advertising (within the meaning of Regulation D under the 1933 Act) in
connection with the offer or sale of the Shares.  The Company acknowledges that it has not engaged a placement
agent in connection with the sale of the Shares.

(h)           No
Integrated Offering.  To the best of
the Company’s knowledge and belief, none of the Company, its Subsidiaries, any
of their affiliates, or 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 Shares under the 1933 Act

 

-5-

 

or cause this offering of the Shares 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 Shares under the 1933 Act or cause the offering of the Shares to be
integrated with other offerings.

(i)            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 Buyers as a result of the transactions contemplated by this
Agreement, including, without limitation, the Company’s issuance of the Shares
and the Buyer’s ownership of the Shares. 
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.

(j)            SEC
Documents; Financial Statements. 
Except as set forth in Section 3(i) of the Company’s Disclosure
Schedules hereto, since February 28, 2002, 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 Buyers
or their respective 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
(i) as may be otherwise indicated in such financial statements or the
notes thereto, or (ii) 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). 
Except as set forth in the financial statements included in the Company
SEC Documents, neither the Company nor any of its Subsidiaries has any
liabilities, contingent or otherwise, other than liabilities incurred in the
ordinary course of business subsequent to May 31, 2002, and liabilities of the
type not required under generally accepted accounting principles to be
reflected in such financial statements. 
Such liabilities

 

-6-

 

incurred subsequent to May 31, 2002, are not, in the
aggregate, material to the financial condition or operating results of the
Company and its Subsidiaries, taken as a whole.

(k)           Conduct
of Business; Regulatory Permits. 
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 Stock Market, trading in the Common Stock has not been suspended
by the SEC or the Nasdaq Stock Market and the Company has received no
communication, written or oral, from the SEC or the Nasdaq Stock Market regarding
the suspension or delisting of the Common Stock from the Nasdaq Stock
Market.  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.

(l)            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, 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; violated or is in violation of any
provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended; or made
any unlawful bribe, rebate, payoff, influence payment, kickback or other
unlawful payment to any foreign or domestic government official or employee.

(m)          Absence
of Litigation.  Except as set forth
in Section 3(l) of the Company’s Disclosure Schedules hereto, there is no
material action, suit, proceeding, inquiry or investigation before or by the
Nasdaq Stock Market, any court, public board, government agency,
self-regulatory organization or body pending 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.

(n)           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, except those being contested in good faith and has set aside on
its books provision 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.

 

-7-

 

(o)           Absence
of Material Changes.  Except as set forth
in the Disclosure Schedule, since May 31, 2002, there has been no material
adverse change in the assets, liabilities, business, properties, operations,
financial condition or results of operations of the Company and its
Subsidiaries, taken as a whole.

(p)           Material
Contracts.  The material contracts
of the Company and its Subsidiaries described in the Company’s SEC Documents
are in full force and effect on the date hereof; and neither the Company nor
its Subsidiaries are in breach of or default under any of such contracts
except, in each case, where the failure of such contracts to be in full force
or effect or the breach or default of such contract, as applicable, by the
Company or its Subsidiaries would not have a material adverse effect on the
consolidated assets, liabilities, business, properties, operations, financial
condition or results of operations of the Company and its Subsidiaries, taken
as a whole.

(q)           Intellectual
Property.  To the best of its knowledge, after due
investigation,  the Company has
ownership or license or legal right to use all patent, copyright, trade secret,
trademark, customer lists, designs, manufacturing or other processes, computer
software, systems, data compilation, research results or other proprietary
rights used in the business of the Company as currently conducted or currently
proposed to be conducted (collectively, “Intellectual Property”), other than
Intellectual Property generally available on commercial terms from other
sources.

All material licenses or
other material agreements under which (i) the Company is granted rights in
Intellectual Property, other than Intellectual Property generally available on
commercial terms from other sources, and (ii) the Company has granted rights to
others in Intellectual Property owned or licensed by the Company, are in full
force and effect and, to the knowledge of the Company, there is no material
default by the Company thereunder.

The Company believes it
has taken all steps required in accordance with sound business practice and
business judgment to establish and preserve its ownership of all material
copyright, trade secret and other proprietary rights with respect to its
products and technology.

To the Company’s knowledge, the present and currently proposed
business, activities and products of the Company do not infringe any
intellectual property of any other person, except where such infringement would
not have a material adverse effect on the Company.  The Company has not been notified that any proceeding charging
the Company with infringement of any adversely held Intellectual Property has
been filed.  To the Company’s knowledge,
there exists no unexpired patent or patent application held by any other person
which includes claims that would be infringed by or otherwise have a material
adverse effect on the Company.  To the
Company’s knowledge, the Company is not making unauthorized use of any
confidential information or trade secrets of any person.

4.             COVENANTS.

(a)           Best
Efforts.  Each party shall use its
best efforts timely to satisfy each of the conditions to be satisfied by it as
provided in Sections 5 and 6 of this Agreement.

(b)           Form D
and Blue Sky.  The Company agrees to
file a Form D with respect to the Shares as required under Regulation D
and to provide upon request a copy thereof to the Buyer

 

-8-

 

promptly after such filing.  The Company shall, on or before the Closing Date, take such
action as the Company shall reasonably determine is necessary in order to
obtain an exemption for or to qualify the Shares for sale to the Buyer pursuant
to this 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 Buyer on or prior to the Closing Date. 
The Company shall make all filings and reports relating to the offer and
sale of the Shares required under applicable securities or “Blue Sky” laws of
the states of the United States following the Closing Date.

(c)           Expenses.  Each of the Company and the Buyer shall bear
its own expenses, including the fees and costs of attorneys, accountants and
financial advisors, incurred in connection with the transactions contemplated
hereunder.

5.             CONDITIONS TO THE COMPANY’S OBLIGATION TO SELL.

The obligation of the Company hereunder to issue and
sell the Shares to the Buyer at the Closing is subject to the satisfaction, at
or before the Closing Date, 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 Buyer with prior
written notice thereof:

(a)           The
Buyer shall have executed each of the Transaction Documents to which it is a
party and delivered the same to the Company.

(b)           The
Buyer shall have delivered to the Company the Purchase Price for the Shares
being purchased by the Buyer at the Closing by wire transfer of immediately
available funds pursuant to the wire instructions provided by the Company.

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

6.             CONDITIONS
TO THE BUYER’S OBLIGATION TO PURCHASE.

The obligation of the Buyer to purchase the Shares is
subject to the satisfaction, at or before the Closing Date, of each of the
following conditions, provided that these conditions are for the Buyer’s sole
benefit and may be waived by the Buyer at any time in its sole discretion by
providing the Company with prior written notice thereof:

(a)           The
Company shall have executed and delivered to the Buyer each of the Transaction
Documents.

(b)           The
Buyer shall have received the opinion of the Company’s counsel dated as of the
Closing Date, in substantially the form attached hereto as Exhibit B.

 

-9-

 

(c)           The
Company shall have delivered to Buyer a facsimile copy of the Stock Certificate
with the original to follow one business day after the Closing.  The Company shall have obtained all
necessary “blue sky” law permits and qualifications, or have the availability
of exemptions therefrom, required by any state for the offer and sale of the
Shares.  The Company shall cause the Shares
to be approved for listing on the Nasdaq SmallCap Market.

(d)           The
representations and warranties of the Company shall be true and correct as of
the date when made and as of the Closing Date 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 Date.

7.             MISCELLANEOUS.

(a)           Governing
Law; Jurisdiction; Jury Trial.  All
questions concerning the construction, validity, enforcement and interpretation
of this Agreement shall be governed by the internal laws of the State of
California, without giving effect to any choice of law or conflict of law
provision or rule (whether of the State of California or any other
jurisdictions) that would cause the application of the laws of any jurisdictions
other than the State of California. 
Each party hereby irrevocably submits to the non-exclusive jurisdiction
of the state and federal courts sitting in the County of Santa Clara, 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 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 agreement
or any transaction contemplated hereby.

(b)           Counterparts.  This Agreement may be executed in  identical counterparts, each 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.

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

(d)           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

 

-10-

 

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.

(e)           Entire
Agreement; Amendments.  This
Agreement supersedes all other prior oral or written agreements between the
Buyer, the Company, 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 and, except as specifically set forth
herein or therein, neither the Company nor the Buyer makes any representation,
warranty, covenant or undertaking with respect to such matters.  No provision of this Agreement may be
amended other than by an instrument in writing signed by the Company and the
Buyer, and no provision hereof may be waived other than by an instrument in
writing signed by the party against whom enforcement is sought. No such
amendment shall be effective to the extent that it applies to less than all of
the holders of the Shares then outstanding. 
The Company has not, directly or indirectly, made any agreements with
the Buyer relating to the terms or conditions of the transactions contemplated
by the Transaction Documents except as set forth in the Transaction Documents.

(f)            Notices.  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:  (i) upon receipt, when delivered personally;
(ii) upon receipt, when sent by facsimile (provided confirmation of
transmission is mechanically or electronically generated and kept on file by
the sending party); or (iii) one 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) 253-4599

  
	
   

  	
   

  	
  Attention:

  	
  John J. Moss, Vice President and General Counsel

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  With a copy to:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Wilson Sonsini Goodrich
  & Rosati, Professional Corporation

  
	
   

  	
   

  	
  650 Page Mill Road

  
	
   

  	
   

  	
  Palo Alto, CA 94304

  
	
   

  	
   

  	
  Telephone:

  	
  (650) 493-9300

  
	
   

  	
   

  	
  Facsimile:

  	
  (650) 493-6811

  
	
   

  	
   

  	
  Attention:

  	
  John Donahue, Esq. or
  Adam R. Dolinko, Esq.

  
					

 

-11-

 

	
   

  	
  If to the Buyer:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Zomax Incorporated

  
	
   

  	
   

  	
  5353 Nathan Lane

  
	
   

  	
   

  	
  Plymouth, MN 
  55442

  
	
   

  	
   

  	
  Telephone:

  	
  (763) 553-9300

  
	
   

  	
   

  	
  Facsimile:

  	
  (763) 519-3710

  
	
   

  	
   

  	
  Attention:

  	
  John Gelp, Executive Vice President, Chief Financial
  Officer and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  With a copy to:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Fredrikson & Byron,
  P.A.

  
	
   

  	
   

  	
  4000 Pillsbury Center

  
	
   

  	
   

  	
  200 South Sixth Street

  
	
   

  	
   

  	
  Minneapolis, MN  55402-1425

  
	
   

  	
   

  	
  Telephone:

  	
  (612) 492-7162

  
	
   

  	
   

  	
  Facsimile:

  	
  (612) 492-7077

  
	
   

  	
   

  	
  Attention:

  	
  Thomas R. King, Esq.

  
					

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 (i), (ii) or (iii)
above, respectively.

(g)           Successors
and Assigns.  This Agreement shall
be binding upon and inure to the benefit of the parties and their respective
successors and assigns.  The Company
shall not assign this Agreement or any rights or obligations hereunder without
the prior written consent of the Buyer, except by merger or consolidation or a
sale of substantially all of its assets. 
The Buyer 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 Buyer 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.

(h)           No
Third Party Beneficiaries.  This
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.

(i)            Survival.  The representations and warranties of the
Company and the Buyer contained in Sections 2 and 3, shall survive the Closing
for one year.  The agreements set forth
in this Section 7 shall survive the termination of this Agreement.

(j)            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

 

-12-

 

out the intent and accomplish the purposes of this
Agreement and the consummation of the transactions contemplated hereby.

(k)           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.

(l)            Confidentiality.  The Buyer agrees that, except with the prior
written permission of the Company, it shall at all times keep confidential and
not divulge, furnish or make accessible to anyone  confidential information, knowledge or data concerning or
relating to the business or financial affairs of the Company to which it has
been or shall become privy by reason of this Agreement, discussions or
negotiations relating to this Agreement (including but limited to the fact that
any transactions contemplated by the Transaction Documents have occurred or may
occur).

(m)          Legal
Representation.  The Buyer
acknowledges that: (a) it has read this Agreement and the exhibits hereto; (b)
it understands that the Company has been represented in the preparation,
negotiation, and execution of this Agreement by Wilson Sonsini Goodrich &
Rosati, Professional Corporation, counsel to the Company; (c) it has either
been represented in the preparation, negotiation, and execution of this
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; (d) it understands the terms and consequences of this Agreement
and is fully aware of its legal and binding effect.

(n)           Publicity.  The Company and the Buyer will mutually
agree upon the text of a press release announcing certain terms and the
execution of this Agreement and related agreements.  Thereafter, if either party desires to make a public announcement
concerning the terms of this Agreement or a related Agreement, such party shall
give reasonable prior advance notice of the proposed text of such announcement
to the other party for its prior review and approval, such approval not to be
unreasonably withheld.  A party shall
not be required to seek the permission of the other parties to repeat any
information as to the terms of this Agreement or a related agreement that have
already been publicly disclosed by such party in accordance with the forgoing
or by another party.  The Company and
Buyer acknowledge that either or both of the Company and the Buyer may be obligated
to disclose the material terms of this Agreement and the related agreements to
the public and to file a copy of this Agreement and the related agreements with
the U. S. Securities and Exchange Commission and either party shall be entitled
to make such a required filing.

(o)           Board
Designation and Observation Rights. 
For so long as (i) Buyer holds five percent (5%) or more of the
Company’s outstanding shares of Common Stock (with such percentage calculated
on a fully diluted basis as if all outstanding convertible securities  were converted into Common Stock) and (ii)
the Strategic Alliance Agreement between the Buyer and the Company, dated as of
the date hereof, is in full force and effect, Buyer shall have the right to
designate (x) an observer to the Company’s Board of Directors or (y) one
representative to serve on the Company’s Board of Directors as a member of the
Board.  Any such observer or
representative must be reasonably acceptable to the Company.  Buyer’s designee shall receive all notices,
documents, and other information in the same time and manner as such
information is supplied to members of the Board. Prior to receiving any such
notices, documents or other information, or

 

-13-

 

attending any meetings of the Company’s Board of
Directors, the designated observer or representative must sign a non-disclosure
agreement with the Company that is in a form reasonably acceptable to the
Company.  Such agreement shall provide,
among other things, that the observer or representative shall keep all
confidential information of the Company in confidence and shall not use such
information except for the Company’s benefit. 
In addition, the observer or representative shall acknowledge in such
agreement the right of the Company and the Board of Directors to exclude such
observer or representative from meetings of the Board of Directors if a
majority of the members of the Board of Directors attending a duly constituted
meeting of the Board of Directors reasonably concludes that attendance or
continued attendance at such meeting would create a conflict of interest and to
keep such observer or representative from receiving information distributed to
the members of the Board of Directors if the Company’s Chairman or Chief
Executive Officer reasonably concludes that receiving or reviewing such
information would create a conflict of interest.   In the event Buyer exercises its right to designate a member of
the Company’s Board of Directors, the Company shall use its reasonable efforts,
but in no case lesser efforts than the Company uses with respect to any of its
other members of its Board of Directors, to provide for the election of Buyer’s
designee.  The right to designate an
observer or appoint a member of the Company’s Board of Directors and the
Buyer’s Right of Participation and Right of First Refusal described in
Paragraph (p) of this Agreement shall expire in the event of a merger or
consolidation of the Company, where the Company’s stockholders before such merger
or consolidation do not represent 50% or more of the stockholders or voting
interest of the surviving entity or in the event of a sale of all or
substantially all of the assets of the Company.

(p)           Right
of Participation and Right of First Refusal.

(1)         For
so long as (i) Buyer holds five percent (5%) or more of the Company’s
outstanding shares of Common Stock (with such percentage calculated on a fully
diluted basis as if all outstanding convertible securities were converted into
Common Stock) and (ii) the Strategic Alliance Agreement between Buyer and the
Company, dated as of the date hereof, is in full force and effect, Buyer shall
have (x) a right of participation to purchase all or part of its pro rata
portion of any New Securities (defined as any shares of Common Stock or
Preferred Stock of the Company issued in any financing of equity or debt with
equity features after the date of this Agreement, exclusive of any financing(s)
conducted during a twelve-month period with gross proceeds of less than $750,000,
shares or rights to acquire shares issued pursuant to employee benefit plans
approved by the Company’s board or shares issued upon exercise or conversion of
shares or rights to acquire shares that are outstanding on the date of this
Agreement and shares issued in any business combination or strategic alliance
the primary purpose of which is not to raise funding) which the Company issues
or sells and (y) a right of first refusal to purchase up to one hundred percent
(100%) of any New Securities at a per share price equal to the per share price
at which the Company proposes to issue such New Securities, plus a fifteen
percent (15%) premium, if the per share price of such New Securities (excluding
such premium) would indicate a valuation of the Company immediately prior to
the issuance of  such New Securities of
fifty million dollars or less, subject in both cases to the terms and
conditions set forth below and applicable legal, regulatory and stock market
listing requirements.  Buyer’s pro rata
portion, for purposes of this Paragraph (p), shall equal a fraction, the
numerator of which is the number of issued and outstanding shares of common
stock held by Buyer or its affiliates that were purchased hereunder or pursuant
to the exercise of rights under this Section 7(p) (assuming the exercise
or conversion of all options,

 

-14-

 

warrants or convertible securities owned by Buyer or
its affiliates into common stock), and the denominator of which is the total
number of shares of common stock then issued and outstanding (assuming the
exercise or conversion of all options, warrants or convertible securities of
the Company into common stock).

(2)           Except
for New Securities which fall under the provisions of paragraph (p)(1)(y)
above, if the Company issues or sells New Securities, it shall give Buyer
written notice of such issuance or sale, describing the type of New Securities
issued or sold, the price thereof and the general terms upon which the Company
effected such issuance or sale.  Buyer
shall have thirty (30) days from the date of receipt of such notice to agree to
purchase all or part of its pro rata portion of such New Securities for the
price and upon the general terms and conditions specified in the Company’s notice
by giving written notice to the Company stating the quantity of New Securities
to be so purchased.  For New Securities
which fall under the provisions of paragraph (p)(1)(y) above, the Company shall
give written notice of such proposed issuance or sale describing the type of
New Securities to be issued or sold, the price thereof and the general terms
upon which the Company proposes to issue such New Securities.  The Buyer shall have fifteen (15) days from
the date of receipt of such notice to agree to purchase all or part of such New
Securities for the price (plus a fifteen percent (15%) premium) and upon the
general terms and conditions specified in the Company’s notice by giving
written notice to the Company stating the quantity of New Securities to be so
purchased.  If Buyer fails to exercise
the foregoing right of first refusal for New Securities which fall under the
provisions of paragraph (p)(1)(y) within such fifteen (15) day period, the
Company may within one hundred twenty (120) days thereafter sell any or all
such New Securities not agreed to be purchased by Buyer at a price (less the
premium Buyer has to or would have to have paid) and upon general terms no more
favorable to the purchasers thereof than specified in the notice given to Buyer.
 If the Company has not sold such New
Securities within such one hundred twenty (120) day period, the Company shall
not thereafter issue or sell any such New Securities which fall under the
provisions of paragraph (p)(1)(y) without first offering such New Securities to
Buyer in the manner provided above.

 

-15-

 

IN
WITNESS WHEREOF,
the Buyer and the Company have caused this Common Stock Purchase Agreement to
be duly executed as of the date first written above.

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  	
   

  
	
   

  	
  INTRAWARE,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

 

	
   

  	
  BUYER:

  
	
   

  	
   

  	
   

  
	
   

  	
  ZOMAX
  INCORPORATED

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

 

 

 

 

 

 

[Signature Page to Common
Stock Purchase Agreement]

 

 

-16-

 

 

COMPANY’S
DISCLOSURE SCHEDULES

 

 

 

 

Exhibit
A

Registration Rights Agreement

 

 

 

Exhibit B

Form of Opinion of Company Counsel

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