Document:

United States Securities & Exchange Commission EDGAR Filing

EXHIBIT 10.1

EMPLOYMENT AGREEMENT

Employment Agreement, dated as of January 17, 2007 (this "Agreement"), by and between Mr. Michael Golden, a resident of the State of Florida (the "Executive"), and Sun American Bancorp., a Delaware corporation and Sun American Bank, a Florida corporation (collectively, the "Company").

R E C I T A L S:

The Company is a bank holding company and has its primary subsidiary as a Florida state banking corporation and other activities in connection with the foregoing (the "Business").

The Company is desirous of continuing to employ the Executive as its Chief Executive Officer and as its Chairman of its Bank Board of Directors, and the Executive desires to be employed by the Company in such position, upon the terms and provisions, and subject to the conditions, set forth in this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants and agreements of the parties contained herein, and other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1.    Employment; Term.  

The Company shall employ the Executive, and the Executive shall accept employment by the Company, upon the terms and provisions, and subject to the conditions, of this Agreement.  The term of the Executive's employment hereunder shall commence as of January 1, 2007 and terminate on December 31, 2007 (the "Employment Term"). Unless written notice is given by either party at least 30 days prior to the end of the term, the term of this Agreement will be automatically extended on a year-to-year basis.

2.   Position and Duties.

(a)

The Company shall employ the Executive, and the Executive shall serve, as the Chief Executive Officer and President of Sun American Bancorp and Chairman of the Board of Directors and Chief Executive Officer of Sun American Bank.  The Executive shall be responsible for overseeing and managing the Business, including complete authority and responsibility for the management of the day-to-day business, operations and strategy of the Company and its subsidiaries, subject to the ultimate authority of the Board of Directors of the Company.  The Executive shall have such additional responsibilities or duties with respect to the Company and its subsidiaries, and their respective operations, as may be determined and assigned to the Executive by the Board of Directors of the Company, which responsibilities and duties shall generally be of a nature which may be assigned to the most senior executive of the Company.  The Executive shall report directly to the Board of Directors of the Company.

(b)

During the Employment Term, the Company and its Board of Directors shall cause the Executive to be nominated to be elected as a director to the Company's Board of Directors.

(c)

Nothing in this Agreement shall prohibit the Executive from serving as an officer or director of any entity or business enterprise, or otherwise participating in educational, welfare, social, religious and civic organizations; provided, however, that during the Employment Term, the Executive shall not serve as a director or officer of any entity or business enterprise which engages in a business that competes directly with the Business and Executive shall devote his full time and efforts to his position as the Chief Executive Officer of the Company.

(d)

Nothing in this Agreement shall prohibit the Executive from making any investments in the securities of any entity or business enterprise; provided, however, that during the Employment Term, the Executive shall not make any investments (other than "passive investments" as defined below) in the securities of any entity or business enterprise which engages in a business that competes directly with the Business.  An investment shall be considered a "passive investment" to the extent that such securities (i) are actively traded on a United States national securities exchange, on the NASDAQ National Market System or Small Cap Market System, on the OTC Bulletin Board, or on any foreign securities exchange, and (ii) represent, at the time such investment is made, less than five percent (5%) of the aggregate voting power of such entity or business enterprise.

(e)

The Executive shall perform his duties from his current offices located in Boca Raton, Florida, or at such other location as may be mutually agreed by the Board and the Executive.

3.  Base Salary; Common Stock Bonus; Sale Bonus; Performance Bonus.

(a) 

During the Employment Term, the Company shall pay to the Executive an annual base salary as set forth in the 2007 Addendum, attached hereto and made a part hereof.  The Base Salary shall be payable in equal bi-weekly installments during any year of the Employment Term; provided, however, that such payments shall be subject to withholding for applicable taxes and any other amounts generally withheld from compensation paid to salaried senior executives of the Company.  

(b)

The Executive shall receive quarterly performance bonuses, stock options and restricted stock as set forth in the 2007 Addendum attached hereto (the "Performance Bonus").

                                         

4.  Expense Allowance; Business Expenses.

(a)

During the Employment Period the Executive shall receive a car allowance equal to $900 per month (the “Monthly Allowance”).

(b)

In addition to the Expense Allowance, the Company shall reimburse the Executive for all necessary and reasonable expenses actually incurred or paid by the Executive during the Employment Term in connection with the performance of the Executive's duties and obligations to the Company in accordance with this Agreement, in accordance with the Company's policies from time to time in effect. 

5.  Benefits; Indemnification and D&O Insurance.

(a)

During the Employment Term, the Executive may (subject to applicable eligibility requirements) participate in such insurance and health and medical benefits 

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as are generally made available to the senior executives of the Company pursuant to such plans as are from time to time maintained by the Company. The Executive acknowledges that his participation in any benefit plan may require the Executive's co-payment of a periodic premium as a deduction from his salary.  In addition, the Company agrees to continue to pay the premium on the life insurance on Executive’s life payable to his beneficiaries.  The Executive agrees that the Company may purchase key man life insurance on his life with the Company as the beneficiary.

(b)

During each full year of the Employment Term, the Executive shall be entitled to four (4) weeks of vacation.  The Executive shall take vacation at such time or times as the Executive desires based upon the then current business needs and activities of the Company.

(c)

During the Employment Term, the Executive shall be entitled to receive such other benefits as may be provided to other senior executives of the Company, including participation in the Company's 401(k) plan and stock option plan.

(d)

During the Employment Term, the Company shall indemnify the Executive and hold the Executive fully harmless from and against all claims, actions, suits, proceedings, liabilities, damages, fines, costs and expenses (including, without limitation, reasonable attorneys' fees and expenses) which may be incurred by the Executive in connection with the performance of his duties hereunder, to the fullest extent permitted by applicable law and to the extent no less than provided to any other senior executive officer of the Company. .  During the Employment Term and for a period of three (3) years thereafter, the Company shall maintain in full force and effect (and pay all premiums which may be due in respect thereof) directors and officers liability insurance coverage at whatever amount the Company deems reasonable.

6.  Non-Competition.  Except as otherwise provided in this Agreement, during the Employment Term, the Executive shall not, anywhere within the United States of America, directly or indirectly, alone or in association with any other Person, directly or indirectly, (i) acquire, or own in any manner, any interest in any Person that engages in the Business or that engages in any business, activity or enterprise that competes with any aspect of the Business, or (ii) be interested in (whether as an owner, director, officer, partner, member, lender, shareholder, vendor, consultant, employee, advisor, agent, independent contractor or otherwise), or otherwise participate in the management or operation of, any Person that engages in any business, activity or enterprise that competes with any aspect of the Business.

7.  Protection of Confidential Information.  

(a)

The Executive acknowledges that prior to the date hereof the Executive has had access to, and during the course of the Executive's employment hereunder will have access to, significant Confidential Information (as hereinafter defined).  The Executive shall maintain all Confidential Information in strict confidence and shall not disclose any Confidential Information to any other Person, except as necessary in connection with the performance of the Executive's duties and obligations under this Agreement, and (ii) the Executive shall not use any Confidential Information for any purpose whatsoever except in connection with the performance of the Executive's duties and obligations under this Agreement.  

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(b)

"Confidential Information" shall mean any and all information pertaining to the Company and the Business, whether such information is in written form or communicated orally, visually or otherwise, that is proprietary, non-public or relates to any trade secret, including, but not limited to, customer data, files, business secrets and business techniques.  Notwithstanding the foregoing, "Confidential Information" shall not include information that (i) is or becomes generally available to, or known by, the public through no fault of the Executive, or (ii) is independently acquired or developed by the Executive without violating any of his obligations under this Agreement.

8.  Termination.

(a)

In the event of the death of the Executive during the Employment Term, the Executive's employment hereunder shall automatically terminate as of the date of death; provided, however, that the Executive's estate or legal representative, as the case may be, shall be entitled to receive, and the Company shall pay the Executive's estate or legal representative, as the case may be, (i) the Base Salary owing to the Executive hereunder through the date of death plus Base Salary for the remaining term of this Agreement plus one (1) year period subsequent thereto; (ii) the Performance Bonus; and (iii) any business expenses which were properly reimbursable to the Executive pursuant to Section 4 hereof, through the date of termination.  The Executive shall be entitled to no further payment upon such termination.

(b)

In the event of the Executive's Incapacity (as hereinafter defined), the Company may, in its sole discretion, upon written notice to the Executive, terminate the Executive's employment hereunder upon written notice to the Executive; provided, however, that the Executive or the Executive's legal representative, as the case may be, shall be entitled to receive, and the Company shall pay the Executive or the Executive's legal representative, as the case may be, (i) the Base Salary owing to the Executive hereunder through the date the Executive receives written notice from the Company of his termination due to Incapacity plus Base Salary for the remaining term of this Agreement plus one (1) year period subsequent thereto; (ii) the Performance Bonus; and (iii) any business expenses which were properly reimbursable to the Executive pursuant to Section 4 hereof through the date of termination.  The Executive shall be entitled to no further payment upon such termination. For purposes of this Agreement, "Incapacity" shall mean the Executive's inability to perform his duties and obligations hereunder on account of illness or other impairment for three (3) consecutive months.  

(c)

The Company shall have the right to terminate the Executive's employment under this Agreement at any time for Cause (as hereinafter defined) upon written notice to the Executive.  In the event the Executive's employment hereunder is terminated by the Company for Cause, or the Executive voluntarily terminates his employment with the Company prior to the end of the Employment Term upon ninety (90) days prior written notice from the Executive to the Company, the Executive shall be entitled to receive, and the Company shall pay the Executive, (i) the Base Salary owing to the Executive hereunder through the date of termination; (ii) any accrued but unpaid Performance Bonus; and (iii) any business expenses which were properly reimbursable to the Executive pursuant to Section 4 hereof through the date of termination.  The Executive shall be entitled to no further payment upon such termination.  The Executive acknowledges and agrees that each of the factors which comprise the definition of "Cause" constitutes, on an individual basis, adequate and sufficient grounds for termination of the Executive's employment with the Company.  If the Executive voluntarily 

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terminates his employment hereunder, it shall not be deemed a breach of this Agreement by the Executive or a violation of the Executive's duties or obligations hereunder.

(d)

For purposes of this Agreement, "Cause" shall mean:  The term “cause” when utilized herein with respect to the termination of Executive shall include (i) the material breach by Executive of any of the material terms or provisions of this Agreement (provided, however, that if such breach is curable, only after 10 days’ notice in reasonable detail, if not cured), (ii) the willful misconduct of Executive in connection with the performance of his material duties hereunder, or the willful refusal by Executive to perform all or any portion of his material duties and responsibilities required pursuant to this Agreement or (iii) fraud, criminal conduct, material dishonesty or breach of trust or embezzlement by Executive.

(e)

The Company shall have the right to terminate the Executive's employment hereunder without Cause at any time upon thirty (30) days prior written notice to the Executive.  If the Company terminates the Executive's employment hereunder without Cause, the Executive shall be entitled to receive, and the Company shall pay the Executive, in accordance with the Company's regular payroll policy, (i) Base Salary owing to the Executive through date of termination plus Base Salary for the remaining term of this Agreement plus one (1) year period subsequent thereto (the period for which Base Salary shall be owed to the Executive under this Section 11(e)(i) shall be referred to herein as the "Severance Period"); (ii) the Performance Bonus; and (iii) any business expenses which were properly reimbursable to the Executive pursuant to Section 4 hereof through the date of termination; and (iv) during the Severance Period, the health, medical insurance and other benefits which are provided to the Executive in Section 5(a) hereunder.  In addition, if the Company terminates the Executive's employment hereunder without Cause, any stock options granted by the Company to the Executive which have not vested or are not yet exercisable shall automatically vest and become immediately exercisable by the Executive commencing on the date of termination and continuing for such period as provided under the respective stock option plan.

(c)

The Executive shall be entitled to terminate his employment with the Company for Good Reason (as hereinafter defined) upon notice to the Company of his intent to so terminate within thirty (30) days after he has actual knowledge of the event giving rise to the notice and the Company fails to cure the condition specified in the Executive's notice to the Company required to be provided by this Section 11(f) within thirty (30) days following such notice.  If the Executive terminates his employment pursuant to this Section 11(f), such termination shall be deemed to be a termination by the Company without Cause, with the same effect and affording to the Executive the same rights and benefits as otherwise provided in this Agreement upon a termination of the Executive's employment by the Company without Cause as provided in Section 11(e) hereof.

(d)

For purposes of this Agreement, "Good Reason" shall mean the occurrence of any of the following events:

(i)

the Executive is not retained as Chief Executive Officer of the Company even if the Executive is allowed to continue in the employ of the Company; or

(ii)

the Company materially reduces the Executive's duties and responsibilities hereunder; or

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(iii)

the Executive is removed from his position as a member of the Board of Directors of the Company for any reason other than in connection with the Executive's termination for Cause; or

(iv)

the Company fails to perform or observe any of its material obligations to the Executive under this Agreement including, without limitation, by failing to provide or cause the provision of, any compensation or benefits to the Executive that it is obligated to provide hereunder; or

9.  Miscellaneous.

(a)

Notices.  All notices, demands, consents, requests, instructions and other communications to be given or delivered or permitted under or by reason of the provisions of this Agreement or in connection with the transactions contemplated hereby shall be in writing and shall be deemed to be delivered and received by the intended recipient as follows:  (i) if personally delivered, on the business day of such delivery (as evidenced by the receipt of the personal delivery service), (ii) if mailed certified or registered mail return receipt requested, four (4) business days after being mailed, (iii) if delivered by overnight courier (with all charges having been prepaid), on the business day of such delivery (as evidenced by the receipt of the overnight courier service of recognized standing), or (iv) if delivered by facsimile transmission, on the business day of such delivery if sent by 5:00 p.m. in the time zone of the recipient, or if sent after that time, on the next succeeding business day (as evidenced by the printed confirmation of delivery generated by the sending party's facsimile machine).  If any notice, demand, consent, request, instruction or other communication cannot be delivered because of a changed address of which no notice was given (in accordance with this Section 12(a)), or the refusal to accept same, the notice, demand, consent, request, instruction or other communication shall be deemed received on the second business day the notice is sent (as evidenced by a sworn affidavit of the sender).  All such notices, demands, consents, requests, instructions and other communications will be sent to the following addresses or facsimile numbers as applicable:  

If to the Company, to:

Sun American Bancorp.

                        Attn: Robert Nichols

                        1200 N. Federal Highway.

                        Suite 111

                        Boca Raton, FL 33432

with a copy to: 

Blank, Rome, LLP

Attn: Bruce C. Rosetto, Esq. 

1200 Federal Highway

Suite 417

Boca Raton, Florida 33432

If to the Executive, to:

Michael Golden

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6455 Enclave Way

Boca Raton, Florida 33496

or to such other address as any party may specify by notice given to the other party in accordance with this Section 12(a).  

(b)

Amendment.  This Agreement may not be modified, amended, altered or supplemented, except by a written agreement executed by each of the parties hereto.  

(c)

Entire Agreement.  This Agreement contains the entire understanding and agreement of the parties relating to the subject matter hereof and supersedes all prior and/or contemporaneous understandings and agreements of any kind and nature (whether written or oral) among the parties with respect to such subject matter, all of which are merged herein. 

(d)

Waiver.  Any waiver by a party hereto of any breach of or failure to comply with any provision or condition of this Agreement by any other party hereto shall not be construed as, or constitute, a continuing waiver of such provision or condition, or a waiver of any other breach of, or failure to comply with, any other provision or condition of this Agreement, any such waiver to be limited to the specific matter and instance for which it is given.  No waiver of any such breach or failure or of any provision or condition of this Agreement shall be effective unless in a written instrument signed by the party granting the waiver and delivered to the other party hereto in the manner provided for hereunder in Section 12(a).  No failure or delay by any party to enforce or exercise its rights hereunder shall be deemed a waiver hereof, nor shall any single or partial exercise of any such right or any abandonment or discontinuance of steps to enforce such rights, preclude any other or further exercise thereof or the exercise of any other right.

10.  Governing Law; Jurisdiction.

(a)

This Agreement shall be governed by and construed in accordance with the laws of the State of Florida applicable to agreements made and to be performed in that state, without regard to any of its principles of conflicts of laws or other laws that would result in the application of the laws of another jurisdiction.  

(b)

Each of the parties unconditionally and irrevocably consents to the exclusive jurisdiction of the courts of the State of Florida located in Palm Beach County and the federal district court for the Southern District of Florida located in Palm Beach County with respect to any suit, action or proceeding arising out of or relating to this Agreement, and each of the parties hereby unconditionally and irrevocably waives any objection to venue in any such court or to assert that any such court is an inconvenient forum, and agrees that service of any summons, complaint, notice or other process relating to such suit, action or other proceeding may be effected in the manner provided in Section 13(a) hereof.  Each of the parties hereby unconditionally and irrevocably waives the right to a trial by jury in any such action, suit or other proceeding. 

11.  Binding Effect, No Assignment, etc.  This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective legal representatives, heirs, estate, successors and permitted assigns.  Neither this Agreement nor any right, interest or obligation hereunder may be assigned by any party hereto without the prior 

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written consent of the other party, and any attempt to do so shall be void and of no force and effect, except (i) assignments and transfers by operation of law and (ii) that the Company may assign any or all of its respective rights, interests and obligations hereunder to any purchaser of a majority of the issued and outstanding capital stock of the Company or a substantial part of the assets of the Company.  

12.  Third Parties.  Nothing herein is intended or shall be construed to confer upon or give to any Person, other than the parties hereto (or persons set forth in Section 14), any rights, privileges or remedies under or by reason of this Agreement.

13.  Headings.  The section headings contained in this Agreement are inserted for reference purposes only and shall not affect in any way the meaning, construction or interpretation of this Agreement.  Any reference to the masculine, feminine, or neuter gender shall be a reference to such other gender as is appropriate.  References to the singular shall include the plural and vice versa.

14.  Counterparts.  This Agreement may be executed in two (2) or more counterparts (including by facsimile signature, which shall constitute a legal and valid signature), and by the different parties hereto in separate counterparts, each of which when executed shall be deemed to be an original, and all of which, when taken together, shall constitute one and the same document.  This Agreement shall become effective when one or more counterparts, taken together, shall have been executed and delivered by all of the parties.  

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

SUN AMERICAN BANK

By: /s/ Stephen L. Perrone                                        

      Name:  Stephen L. Perrone

      Title:     Vice-Chairman

SUN AMERICAN BANCORP.

By: /s/ James Partridge                                             

      Name:  James Partridge

      Title:     Chairman

/s/ Michael Golden                                                    

Michael Golden

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2007 Addendum

			
	Base salary for 2007

	          

	$350,000

	 
	 
	 

	Bonus compensation minimum(1)           

	 
	$125,000

	annualized

	 
	 

———————

(1)

To be paid $ 31,250 per quarter except for the last quarter which will be determined based upon yearly annualized results. The Compensation Committee may, in its sole discretion, pay such bonus in the event the goals have been substantially met  given the circumstances of the growth of the Bank in all areas, including, but not limited to, number of branches, acceptable ratings in examinations by the State and Federal regulators, etc.  Such goals shall be based upon the Company and Bank’s approved budget for 2007.

			
	Granted options 

	          

	125,000

	 
	 
	 

	Restricted stock

	 
	50,000

	 
	 
	 

If the goal is not met in a quarter, no bonus is payable; if a goal is “made up” in the year to date (YTD) numbers then the bonus is payable for the “missed” quarter.  All payments are to be made within 45 days after end of quarter.  

- 9 -January 23, 2007 8K Exhibit 4.1

INTRAWARE, INC.

and

COMPUTERSHARE INVESTOR SERVICES LLC

 

 

 

 

SECOND AMENDED PREFERRED STOCK RIGHTS AGREEMENT

Dated as of January 22, 2007

 

 

 

 

TABLE OF CONTENTS

	
  	
  	
Page

	
 Section 1.	
Certain Definitions     	
1
	
 Section 2.	
Appointment of Rights Agent     	
7 
	
 Section 3.	
Issuance of Rights Certificates     	
8 
	
 Section 4.	
Form of Rights Certificates     	
9 
	
 Section 5.	
Countersignature and Registration     	
10 
	
 Section 6.	
Transfer, Split Up, Combination and Exchange of Rights Certificates; Mutilated, Destroyed, Lost or Stolen Rights Certificates     	
11 
	
 Section 7.	
Exercise of Rights; Exercise Price; Expiration Date of Rights.     	
11 
	
 Section 8.	
Cancellation and Destruction of Rights Certificates 	
13 
	
 Section 9.	
Reservation and Availability of Preferred Shares 	
14 
	
 Section 10.	
Record Date  	
15 
	
 Section 11.	
Adjustment of Exercise Price, Number of Shares or Number of Rights    	
15 
	
 Section 12.	
Certificate of Adjusted Exercise Price or Number of Shares    	
22 
	
 Section 13.	
Consolidation, Merger or Sale or Transfer of Assets or Earning Power    	
22 
	
 Section 14.	
Fractional Rights and Fractional Shares    	
26 
	
 Section 15.	
Rights of Action    	
27 
	
 Section 16.	
Agreement of Rights Holders    	
27 
	
 Section 17.	
Rights Certificate Holder Not Deemed a Stockholder    	
28 
	
 Section 18.	
Concerning the Rights Agent    	
28 
	
 Section 19.	
Merger or Consolidation or Change of Name of Rights Agent    	
28 
	
 Section 20.	
Duties of Rights Agent    	
29 
	
 Section 21.	
Change of Rights Agent    	
31 

 - ii -

TABLE OF CONTENTS 
 (continued)

	
  	
  	
Page

	
 Section 22.	
Issuance of New Rights Certificates      	
32 
	
 Section 23.	
Redemption    	
32 
	
 Section 24.	
Exchange    	
33 
	
 Section 25.	
Notice of Certain Events    	
35 
	
 Section 26.	
Notices    	
35 
	
 Section 27.	
Supplements and Amendments    	
36 
	
 Section 28.	
Successors    	
37 
	
 Section 29.	
Determinations and Actions by the Board of Directors, etc                
                       
                       
            
                       	
37 
	
 Section 30.	
Benefits of this Agreement    	
37 
	
 Section 31.	
Severability    	
37 
	
 Section 32.	
Governing Law    	
37 
	
 Section 33.	
Counterparts    	
38 
	
 Section 34.	
Descriptive Headings    	
38 

EXHIBITS

Exhibit AForm of Certificate of Designation

Exhibit BForm of Rights Certificate

Exhibit CSummary of Rights

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SECOND AMENDED AND RESTATED

                  PREFERRED STOCK RIGHTS AGREEMENT

This Second Amended and Restated Preferred Stock Rights Agreement ("Agreement")
is dated as of January 22, 2007, between Intraware, Inc., a Delaware corporation (the "Company"), and
Computershare Investor Services, LLC (the "Rights Agent").

This Agreement amends, restates, supersedes and replaces in its entirety that certain
Preferred Stock Rights Agreement, dated as of September 8, 2005, as amended June 22, 2006, between the Company and the Rights
Agent.

On September 8, 2005 (the  "Rights Dividend Declaration Date"), the Board of Directors of
the Company authorized and declared a dividend of one Preferred Share Purchase Right (a  "Right") for each
Common Share (as hereinafter defined) of the Company outstanding as of the Close of Business (as hereinafter defined) on September
23, 2005 (the "Record Date"), each Right representing the right to purchase one one-thousandth (0.001) of a share
of Series D Participating Preferred Stock (as such number may be adjusted pursuant to the provisions of this Agreement), having the
rights, preferences and privileges set forth in the form of Certificate of Designations of Rights, Preferences and Privileges of Series D
Participating Preferred Stock attached hereto as Exhibit A, upon the terms and subject to the conditions herein set forth, and
further authorized and directed the issuance of one Right (as such number may be adjusted pursuant to the provisions of this
Agreement) with respect to each Common Share that shall become outstanding between the Record Date and the earlier of the
Distribution Date and the Expiration Date (as such terms are hereinafter defined), and in certain circumstances after the Distribution
Date.

NOW, THEREFORE, in consideration of the promises and the mutual agreements herein set forth, the parties
hereby agree as follows:

Section 1.   Certain Definitions
.
  For purposes of this Agreement, the following terms have the meanings indicated:

	"Acquiring Person" shall mean any Person, who or which, together
with all Affiliates and Associates of such Person, shall be the Beneficial Owner of 15% or more of the Common Shares then
outstanding, but shall not include the Company, any Subsidiary of the Company or any employee benefit plan of the Company or of any
Subsidiary of the Company, or any entity holding Common Shares for or pursuant to the terms of any such plan.  Notwithstanding
the foregoing, neither Crosslink Capital, Inc. ("Crosslink") or any Person controlled by Crosslink within the meaning
of Rule 144 of the Securities Act (each such Person, a "Crosslink Affiliate"), nor Special Situations
Technology Fund, L.P. (Tech) and Special Situations Technology II, L.P. (Tech II), (collectively "Special Situations
Technology Funds"), as applicable, and any Person controlled by Special Situations Technology Funds within the meaning of
Rule 144 of the Securities Act (each such Person, a "Special Situations Technology Funds Affiliate") shall be
deemed an "Acquiring Person" until such time as Crosslink with its Crosslink Affiliates, and/or Special

Situations Technology
Funds with their Special Situations Technology Funds Affiliates, as applicable, shall be the Beneficial Owner of 20% or more of the
Common Shares then outstanding or, notwithstanding Section 1(d)(ii)(A), until such time as Crosslink with its Crosslink Affiliates, and/or
until such time as Special Situations Technology Funds with their affiliates, as applicable, announce a tender offer to acquire shares
that, if acquired, would cause such person to beneficially own 20% or more of the Company's Common shares then outstanding.  As to
Crosslink and any Crosslink Affiliate, and to Special Situations Technology Funds or any Special Situations Technology Funds
Affiliates, as applicable, in each case in which the number "15%" is used in this Section or elsewhere in this Agreement in
connection with any determination as to whether a Person is an "Acquiring Person," such number shall be read to equal the
current percentage threshold applicable to Crosslink or any Crosslink Affiliate, and to Special Situations Technology Funds or any
Special Situations Technology Funds Affiliates, as applicable, under this Section 1(a).  No Person shall be deemed to be an
"Acquiring Person" as the result of an acquisition of Common Shares by the Company which, by reducing the number of
shares outstanding, increases the proportionate number of shares beneficially owned by such Person to 15% or more of the Common
Shares of the Company then outstanding; provided, however, that if a Person shall become the Beneficial Owner of
15% or more of the Common Shares of the Company then outstanding by reason of share purchases by the Company and shall, after
such share purchases by the Company, become the Beneficial Owner of any additional Common Shares of the Company (other than
pursuant to a dividend or distribution paid or made by the Company on the outstanding Common Shares in Common Shares or
pursuant to a split or subdivision of the outstanding Common Shares), then such Person shall be deemed to be an Acquiring Person
unless upon becoming the Beneficial Owner of such additional Common Shares of the Company such Person does not beneficially own
15% or more of the Common Shares of the Company then outstanding.  Notwithstanding the foregoing, (i) if the Company's
Board of Directors determines in good faith that a Person who would otherwise be an "Acquiring Person," as defined
pursuant to the foregoing provisions of this paragraph (a), has become such inadvertently (including, without limitation, because
(A) such Person was unaware that it beneficially owned a percentage of the Common Shares that would otherwise cause such
Person to be an "Acquiring Person," as defined pursuant to the foregoing provisions of this paragraph (a), or (B) such
Person was aware of the extent of the Common Shares it beneficially owned but had no actual knowledge of the consequences of such
beneficial ownership under this Agreement) and without any intention of changing or influencing control of the Company, and if such
Person divested or divests as promptly as practicable a sufficient number of Common Shares so that such Person would no longer be
an "Acquiring Person," as defined pursuant to the foregoing provisions of this paragraph (a), then such Person shall not be
deemed to be or to have become an "Acquiring Person" for any purposes of this Agreement including, without limitation
Section 1(gg) hereof; and (ii) if, as of the date hereof, any Person is the Beneficial Owner of 15% or more of the Common Shares
outstanding, such Person shall not be or become an "Acquiring Person," as defined pursuant to the foregoing provisions of
this paragraph (a), unless and until such time as such Person shall become the Beneficial Owner of additional Common Shares (other
than pursuant to a dividend or distribution paid or made by the Company on the outstanding Common Shares in Common Shares or
pursuant to a split or subdivision of the outstanding Common Shares), unless, upon becoming the Beneficial Owner of such additional
Common Shares, such Person is not then the Beneficial Owner of 15% or more of the Common Shares then outstanding.

 - 2 -

	"Adjustment Fraction" shall have the meaning set forth in Section 11(a)(i)
hereof. 

	"Affiliate" and "Associate" shall have the respective meanings
ascribed to such terms in Rule 12b-2 of the General Rules and Regulations under the Exchange Act, as in effect on the date of
this Agreement. 

	A Person shall be deemed the "Beneficial Owner" of, shall be deemed to 
"beneficially own," and shall be deemed to have "beneficial ownership" of any securities:

	which such Person or any of such Person's Affiliates or Associates beneficially owns, directly or indirectly,
for purposes of Section 13(d) of the Exchange Act and Rule 13d-3 thereunder (or any comparable or successor law or
regulation);

	which such Person or any of such Person's Affiliates or Associates has (A) the right to acquire
(whether such right is exercisable immediately or only after the passage of time) pursuant to any agreement, arrangement or
understanding (other than customary agreements with and between underwriters and selling group members with respect to a bona
fide public offering of securities), or upon the exercise of conversion rights, exchange rights, rights (other than the Rights), warrants or
options, or otherwise; provided, however, that a Person shall not be deemed pursuant to this Section 1(d)(ii)(A)
to be the Beneficial Owner of, or to beneficially own, (1) securities tendered pursuant to a tender or exchange offer made by or
on behalf of such Person or any of such Person's Affiliates or Associates until such tendered securities are accepted for purchase or
exchange, or (2) securities which a Person or any of such Person's Affiliates or Associates may be deemed to have the right to
acquire pursuant to any merger or other acquisition agreement between the Company and such Person (or one or more of its Affiliates
or Associates) if such agreement has been approved by the Board of Directors of the Company prior to there being an Acquiring
Person; or (B) the right to vote pursuant to any agreement, arrangement or understanding; provided, however,
that a Person shall not be deemed the Beneficial Owner of, or to beneficially own, any security under this Section 1(d)(ii)(B) if the
agreement, arrangement or understanding to vote such security (1) arises solely from a revocable proxy or consent given to such
Person in response to a public proxy or consent solicitation made pursuant to, and in accordance with, the applicable rules and
regulations of the Exchange Act and (2) is not also then reportable on Schedule 13D under the Exchange Act (or any
comparable or successor report); or

	which are beneficially owned, directly or indirectly, by any other Person (or any Affiliate or Associate
thereof) with which such Person or any of such Person's Affiliates or Associates has any agreement, arrangement or understanding,
whether or not in writing (other than customary agreements with and between underwriters and selling group members with respect to a
bona fide public offering of securities) for the purpose of acquiring, holding, voting (except to the extent contemplated by the proviso to
Section 1(d)(ii)(B)) or disposing of any securities of the Company; provided, however, that in no case shall an
officer or director of the Company be deemed (x) the Beneficial Owner of any securities beneficially owned by another officer or
director of the Company solely by reason of actions undertaken by such persons in their capacity as officers or directors of the
Company or (y) the Beneficial Owner of securities held of

 - 3 -

record by the trustee of any employee benefit plan of the Company or
any Subsidiary of the Company for the benefit of any employee of the Company or any Subsidiary of the Company, other than the
officer or director, by reason of any influence that such officer or director may have over the voting of the securities held in the
plan.

	"Business Day" shall mean any day other than a Saturday, Sunday or a day on which
banking institutions in New York are authorized or obligated by law or executive order to close. 

	"Close of Business" on any given date shall mean 5:00 P. M., New York
time, on such date; provided, however, that if such date is not a Business Day it shall mean 5:00 P.M., New
York time, on the next succeeding Business Day.

	"Common Stock Equivalents" shall have the meaning set forth in
Section 11(a)(iii) hereof.   "Common Shares" when used with reference to the Company shall mean
the shares of Common Stock of the Company, par value at $0.0001 per share.  Common Shares when used with reference to any
Person other than the Company shall mean the capital stock (or equity interest) with the greatest voting power of such other Person or,
if such other Person is a Subsidiary of another Person, the Person or Persons which ultimately control such first-mentioned
Person.

	"Company" shall mean the Company as defined in the recitals hereto, subject to the
terms of Section 13(a)(iii)(C) hereof.

	"Current Per Share Market Price" of any security (a "Security" for purposes
of this definition), for all computations other than those made pursuant to Section 11(a)(iii) hereof, shall mean the average of the
daily closing prices per share of such Security for the thirty (30) consecutive Trading Days immediately prior to such date, and for
purposes of computations made pursuant to Section 11(a)(iii) hereof, the Current Per Share Market Price of any Security on any
date shall be deemed to be the average of the daily closing prices per share of such Security for the ten (10) consecutive Trading Days
immediately prior to such date; provided, however, that in the event that the Current Per Share Market Price of the
Security is determined during a period following the announcement by the issuer of such Security of (i) a dividend or distribution
on such Security payable in shares of such Security or securities convertible into such shares or (ii) any subdivision, combination
or reclassification of such Security, and prior to the expiration of the applicable thirty (30) Trading Day or ten (10) Trading Day period,
after the ex-dividend date for such dividend or distribution, or the record date for such subdivision, combination or reclassification, then,
and in each such case, the Current Per Share Market Price shall be appropriately adjusted to reflect the current market price per share
equivalent of such Security.  The closing price for each day shall be the last sale price, regular way, or, in case no such sale
takes place on such day, the average of the closing bid and asked prices, regular way, in either case as reported in the principal
consolidated transaction reporting system with respect to securities listed or admitted to trading on the New York Stock Exchange or, if
the Security is not listed or admitted to trading on the New York Stock Exchange, as reported in the principal consolidated transaction
reporting system with respect to securities listed on the principal national securities exchange on which the Security is

 - 4 -

listed or admitted
to trading or, if the Security is not listed or admitted to trading on any national securities exchange, the last sale price or, if such last
sale price is not reported, the average of the high bid and low asked prices in the over-the-counter market, as reported by Nasdaq or
such other system then in use, or, if on any such date the Security is not quoted by any such organization, the average of the closing
bid and asked prices as furnished by a professional market maker making a market in the Security selected by the Board of Directors of
the Company.  If on any such date no market maker is making a market in the Security, the fair value of such shares on such date as
determined in good faith by the Board of Directors of the Company shall be used.  If the Preferred Shares are not publicly traded, the
Current Per Share Market Price of the Preferred Shares shall be conclusively deemed to be (x) the Current Per Share Market
Price of the Common Shares as determined pursuant to this Section 1(i), as appropriately adjusted to reflect any stock split,
stock dividend or similar transaction occurring after the date hereof, multiplied by (y) 1,000.  If the Security is not publicly held or
so listed or traded, Current Per Share Market Price shall mean the fair value per share as determined in good faith by the Board of
Directors of the Company, whose determination shall be described in a statement filed with the Rights Agent and shall be conclusive for
all purposes.

	"Current Value" shall have the meaning set forth in Section 11(a)(iii)
hereof. 

	"Distribution Date" shall mean the earlier of (i) the Close of Business on the
tenth (10th) day (or such later date as may be determined by action of the Company's Board of Directors) after the
Shares Acquisition Date (or, if the tenth (10th) day after the Shares Acquisition Date occurs before the Record Date, the
Close of Business on the Record Date) or (ii) the Close of Business on the tenth (10th) Business Day (or such
later date as may be determined by action of the Company's Board of Directors) after the date that a tender or exchange offer by any
Person (other than the Company, any Subsidiary of the Company, any employee benefit plan of the Company or of any Subsidiary of
the Company, or any Person or entity organized, appointed or established by the Company for or pursuant to the terms of any such
plan) is first published or sent or given within the meaning of Rule 14d-2(a) of the General Rules and Regulations under the
Exchange Act, if, assuming the successful consummation thereof, such Person would be an Acquiring Person. 

	"Equivalent Shares" shall mean Preferred Shares and any other class or series
of capital stock of the Company which is entitled to the same rights, privileges and preferences as the Preferred
Shares. 

	"Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended. 

	"Exchange Ratio" shall have the meaning set forth in Section 24(a)
hereof. 

	"Exercise Price" shall have the meaning set forth in Section 4(a)
hereof. 

 - 5 -

	"Expiration Date" shall mean the earliest to occur of: (i) the Close of Business on
the Final Expiration Date, (ii) the Redemption Date, or (iii) the time at which the Board of Directors orders the exchange of
the Rights as provided in Section 24 hereof.  

	"Final Expiration Date" shall mean September 23, 2015. 

	"Nasdaq" shall mean The Nasdaq Stock Market, Inc.

	"Person" shall mean any individual, firm, corporation or other entity, and shall include
any successor (by merger or otherwise) of such entity. 

	"Post-Event Transferee" shall have the meaning set forth in Section 7(e)
hereof. 

	"Preferred Shares" shall mean shares of Series D Participating Preferred Stock, par
value $0.0001 per share, of the Company.

	"Pre-Event Transferee" shall have the meaning set forth in Section 7(e)
hereof. 

	"Principal Party" shall have the meaning set forth in Section 13(b)
hereof. 

	"Record Date" shall have the meaning set forth in the recitals at the beginning of this
Agreement. 

	"Redemption Date" shall have the meaning set forth in Section 23(a)
hereof. 

	"Redemption Price" shall have the meaning set forth in Section 23(a)
hereof. 

	"Rights Agent" shall mean (i) the Rights Agent, as defined in the recitals hereto,
(ii) its successor or replacement as provided in Sections 19 and 21 hereof or (iii) any additional Person appointed
pursuant to Section 2 hereof. 

	"Rights Certificate" shall mean a certificate substantially in the form attached hereto as
Exhibit B. 

	"Rights Dividend Declaration Date" shall have the meaning set forth in the recitals at
the beginning of this Agreement. 

	"Section 11(a)(ii) Trigger Date" shall have the meaning set forth in
Section 11(a)(iii) hereof.  

	"Section 13 Event" shall mean any event described in clause (i), (ii) or (iii)
of Section 13(a) hereof. 

 - 6 -

	"Securities Act" shall mean the Securities Act of 1933, as amended. 

	"Shares Acquisition Date" shall mean the first date of public announcement (which, for
purposes of this definition, shall include, without limitation, a report filed pursuant to Section 13(d) of the Exchange Act) by the
Company or an Acquiring Person that an Acquiring Person has become such; provided that, if such Person is determined not
to have become an Acquiring Person pursuant to Section 1(a) hereof, then no Shares Acquisition Date shall be deemed to have
occurred by virtue of such event.

	"Spread" shall have the meaning set forth in Section 11(a)(iii)
hereof. 

	"Subsidiary" of any Person shall mean any corporation or other entity of which an
amount of voting securities sufficient to elect a majority of the directors or Persons having similar authority of such corporation or other
entity is beneficially owned, directly or indirectly, by such Person, or any corporation or other entity otherwise controlled by such
Person. 

	"Substitution Period" shall have the meaning set forth in Section 11(a)(iii)
hereof. 

	"Summary of Rights" shall mean a summary of this Agreement substantially in the form
attached hereto as Exhibit C. 

	"Total Exercise Price" shall have the meaning set forth in Section 4(a)
hereof. 

	"Trading Day" shall mean a day on which the principal national securities exchange on
which a referenced security is listed or admitted to trading is open for the transaction of business or, if a referenced security is not listed
or admitted to trading on any national securities exchange, a Business Day.  

	A "Triggering Event" shall be deemed to have occurred upon any Person becoming an
Acquiring Person. 

Section 2.   Appointment of Rights Agent
.
  The Company hereby appoints the Rights Agent to act as agent for the Company and the holders
of the Rights (who, in accordance with Section 3 hereof, shall prior to the Distribution Date also be the holders of the Common
Shares) in accordance with the terms and conditions hereof, and the Rights Agent hereby accepts such appointment.  The Company
may from time to time appoint such co-Rights Agents as it may deem necessary or desirable, upon ten (10) days' prior written notice to
the Rights Agent.  The Rights Agent shall have no duty to supervise, and shall in no event be liable for, the acts or omissions of any
co-Rights Agent.

 - 7 -

Section 3.   Issuance of Rights Certificates
.

	Until the Distribution Date, (i) the Rights will be evidenced (subject to the provisions of
Sections 3(b) and 3(c) hereof) by the certificates for Common Shares registered in the names of the holders thereof (which
certificates shall also be deemed to be Rights Certificates) and not by separate Rights Certificates and (ii) the right to receive
Rights Certificates will be transferable only in connection with the transfer of Common Shares.  Until the earlier of the Distribution
Date or the Expiration Date, the surrender for transfer of certificates for Common Shares shall also constitute the surrender for transfer
of the Rights associated with the Common Shares represented thereby.  As soon as practicable after the Distribution Date, the
Company will prepare and execute, the Rights Agent will countersign, and the Company will send or cause to be sent (and the Rights
Agent will, if requested, send) by first-class, postage-prepaid mail, to each record holder of Common Shares as of the Close of
Business on the Distribution Date, at the address of such holder shown on the records of the Company, a Rights Certificate evidencing
one Right for each Common Share so held, subject to adjustment as provided herein.  In the event that an adjustment in the number of
Rights per Common Share has been made pursuant to Section 11 hereof, then at the time of distribution of the Rights
Certificates, the Company shall make the necessary and appropriate rounding adjustments (in accordance with
Section 14(a) hereof) so that Rights Certificates representing only whole numbers of Rights are distributed and cash is paid in
lieu of any fractional Rights (in accordance with Section 14(a) hereof).  As of the Distribution Date, the Rights will be evidenced
solely by such Rights Certificates and may be transferred by the transfer of the Rights Certificates as permitted hereby, separately and
apart from any transfer of Common Shares, and the holders of such Rights Certificates as listed in the records of the Company or any
transfer agent or registrar for the Rights shall be the record holders thereof.

	On the Record Date or as soon as practicable thereafter, the Company will send a copy of the Summary of
Rights by first-class, postage-prepaid mail, to each record holder of Common Shares as of the Close of Business on the Record Date,
at the address of such holder shown on the records of the Company's transfer agent and registrar.  With respect to certificates for
Common Shares outstanding as of the Record Date, until the Distribution Date, the Rights will be evidenced by such certificates
registered in the names of the holders thereof together with the Summary of Rights.

	Unless the Board of Directors by resolution adopted at or before the time of the issuance of any Common
Shares after the Record Date but prior to the earlier of the Distribution Date or the Expiration Date (or, in certain circumstances
provided in Section 22 hereof, after the Distribution Date) specifies to the contrary, Rights shall be issued in respect of all
Common Shares that are so issued, and Certificates representing such Common Shares shall also be deemed to be certificates for
Rights, and shall bear the following legend:

THIS CERTIFICATE ALSO EVIDENCES AND ENTITLES THE HOLDER HEREOF TO CERTAIN RIGHTS AS
SET FORTH IN THE AMENDED AND RESTATED PREFERRED STOCK RIGHTS AGREEMENT BETWEEN INTRAWARE, INC. AND
COMPUTERSHARE INVESTOR SERVICES LLC, AS

 - 8 -

THE RIGHTS AGENT, DATED AS OF JUNE 22, 2006 (THE "RIGHTS
AGREEMENT"), THE TERMS OF WHICH ARE HEREBY INCORPORATED HEREIN BY REFERENCE AND A COPY OF
WHICH IS ON FILE AT THE PRINCIPAL EXECUTIVE OFFICES OF INTRAWARE, INC. UNDER CERTAIN CIRCUMSTANCES, AS
SET FORTH IN THE RIGHTS AGREEMENT, SUCH RIGHTS WILL BE EVIDENCED BY SEPARATE CERTIFICATES AND WILL NO
LONGER BE EVIDENCED BY THIS CERTIFICATE. THE COMPANY WILL MAIL TO THE HOLDER OF THIS CERTIFICATE A COPY
OF THE RIGHTS AGREEMENT WITHOUT CHARGE AFTER RECEIPT OF A WRITTEN REQUEST THEREFOR.  UNDER CERTAIN
CIRCUMSTANCES, AS SET FORTH IN THE RIGHTS AGREEMENT, RIGHTS ISSUED TO, OR HELD BY, ANY PERSON WHO IS,
WAS OR BECOMES AN ACQUIRING PERSON OR ANY AFFILIATE OR ASSOCIATE THEREOF (AS SUCH TERMS ARE DEFINED
IN THE RIGHTS AGREEMENT), WHETHER CURRENTLY HELD BY OR ON BEHALF OF SUCH PERSON OR BY ANY
SUBSEQUENT HOLDER, MAY BECOME NULL AND VOID AND MAY NOT THEREAFTER BE EXERCISED OR
TRANSFERRED.

With respect to such certificates containing the foregoing legend, until the earlier of the Distribution Date or the
Expiration Date, the Rights associated with the Common Shares represented by such certificates shall be evidenced by such
certificates alone, and the surrender for transfer of any such certificate shall also constitute the transfer of the Rights associated with
the Common Shares represented thereby.

	In the event that the Company purchases or acquires any Common Shares after the Record Date but prior
to the Distribution Date, any Rights associated with such Common Shares shall be deemed canceled and retired so that the Company
shall not be entitled to exercise any Rights associated with the Common Shares which are no longer
outstanding. 

Section 4.   Form of Rights Certificates
.

	The Rights Certificates (and the forms of election to purchase Common Shares and of assignment to be
printed on the reverse thereof) shall be substantially in the form of Exhibit B hereto and may have such marks of
identification or designation and such legends, summaries or endorsements printed thereon as the Company may deem appropriate
and are not inconsistent with the provisions of this Agreement, or as may be required to comply with any applicable law or with any rule
or regulation made pursuant thereto or with any rule or regulation of any stock exchange or a national market system, on which the
Rights may from time to time be listed or included, or to conform to usage.  Subject to the provisions of Section 11 and
Section 22 hereof, the Rights Certificates, whenever distributed, shall be dated as of the Record Date (or in the case of Rights
issued with respect to Common Shares issued by the Company after the Record Date, as of the date of issuance of such Common
Shares) and on their face shall entitle the holders thereof to purchase such number of one-thousandths (0.001) of a Preferred Share as
shall be set forth therein at the price set forth therein (such exercise price per one one-thousandth (0.001) of a Preferred Share

 - 9 -

being hereinafter referred to as the  "Exercise Price" and the aggregate Exercise Price of all Preferred Shares issuable
upon exercise of one Right being hereinafter referred to as the  "Total Exercise Price"), but the number and type of
securities purchasable upon the exercise of each Right and the Exercise Price shall be subject to adjustment as provided
herein.

	Any Rights Certificate issued pursuant to Section 3(a) or Section 22 hereof that represents
Rights beneficially owned by:  (i) an Acquiring Person or any Associate or Affiliate of an Acquiring Person, (ii) a Post-Event
Transferee, (iii) a Pre-Event Transferee or (iv) any subsequent transferee receiving transferred Rights from a Post-Event
Transferee or a Pre-Event Transferee, either directly or through one or more intermediate transferees, and any Rights Certificate issued
pursuant to Section 6 or Section 11 hereof upon transfer, exchange, replacement or adjustment of any other Rights
Certificate referred to in this sentence, shall contain (to the extent feasible) the following legend:

THE RIGHTS REPRESENTED BY THIS RIGHTS CERTIFICATE ARE OR WERE BENEFICIALLY OWNED BY
A PERSON WHO WAS OR BECAME AN ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON
(AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT).  ACCORDINGLY, THIS RIGHTS CERTIFICATE AND THE
RIGHTS REPRESENTED HEREBY MAY BECOME NULL AND VOID IN THE CIRCUMSTANCES SPECIFIED IN SECTION 7(e)
OF THE RIGHTS AGREEMENT.

Section 5.   Countersignature and Registration
.

	The Rights Certificates shall be executed on behalf of the Company by its Chairman of the Board, its Chief
Executive Officer, its Chief Financial Officer, its President or any Vice President, either manually or by facsimile signature, and by the
Secretary or an Assistant Secretary of the Company, either manually or by facsimile signature, and shall have affixed thereto the
Company's seal (if any) or a facsimile thereof.  The Rights Certificates shall be manually countersigned by the Rights Agent and
shall not be valid for any purpose unless countersigned.  In case any officer of the Company who shall have signed any of the Rights
Certificates shall cease to be such officer of the Company before countersignature by the Rights Agent and issuance and delivery by
the Company, such Rights Certificates, nevertheless, may be countersigned by the Rights Agent and issued and delivered by the
Company with the same force and effect as though the person who signed such Rights Certificates on behalf of the Company had not
ceased to be such officer of the Company; and any Rights Certificate may be signed on behalf of the Company by any person who, at
the actual date of the execution of such Rights Certificate, shall be a proper officer of the Company to sign such Rights Certificate,
although at the date of the execution of this Rights Agreement any such person was not such an officer.

	Following the Distribution Date, the Rights Agent will keep or cause to be kept, at its office designated for
such purposes, books for registration and transfer of the Rights Certificates issued hereunder.  Such books shall show the names
and addresses of the respective

 - 10 -

holders of the Rights Certificates, the number of Rights evidenced on its face by each of the
Rights Certificates and the date of each of the Rights Certificates.

Section 6.   Transfer, Split Up, Combination and Exchange of Rights Certificates;
Mutilated, Destroyed, Lost or Stolen Rights Certificates
.

	Subject to the provisions of Sections 7(e), 14 and 24 hereof, at any time after the Close of Business
on the Distribution Date, and at or prior to the Close of Business on the Expiration Date, any Rights Certificate or Rights Certificates
may be transferred, split up, combined or exchanged for another Rights Certificate or Rights Certificates, entitling the registered holder
to purchase a like number of one-thousandths (0.001) of a Preferred Share (or, following a Triggering Event, other securities, cash or
other assets, as the case may be) as the Rights Certificate or Rights Certificates surrendered then entitled such holder to
purchase.  Any registered holder desiring to transfer, split up, combine or exchange any Rights Certificate or Rights Certificates
shall make such request in writing delivered to the Rights Agent, and shall surrender the Rights Certificate or Rights Certificates to be
transferred, split up, combined or exchanged at the office of the Rights Agent designated for such purpose.  Neither the Rights Agent
nor the Company shall be obligated to take any action whatsoever with respect to the transfer of any such surrendered Rights
Certificate until the registered holder shall have completed and signed the certificate contained in the form of assignment on the reverse
side of such Rights Certificate and shall have provided such additional evidence of the identity of the Beneficial Owner (or former
Beneficial Owner) or Affiliates or Associates thereof as the Company shall reasonably request.  Thereupon the Rights Agent shall,
subject to Sections 7(e), 14 and 24 hereof, countersign and deliver to the person entitled thereto a Rights Certificate or Rights
Certificates, as the case may be, as so requested.  The Company may require payment from the registered holder of a sum sufficient to
cover any tax or governmental charge that may be imposed in connection with any transfer, split up, combination or exchange of
Rights Certificates.

	Upon receipt by the Company and the Rights Agent of evidence reasonably satisfactory to them of
the loss, theft, destruction or mutilation of a Rights Certificate, and, in case of loss, theft or destruction, of indemnity or security
reasonably satisfactory to them, and, at the Company's request, reimbursement to the Company and the Rights Agent of all reasonable
expenses incidental thereto, and upon surrender to the Rights Agent and cancellation of the Rights Certificate if mutilated, the
Company will make and deliver a new Rights Certificate of like tenor to the Rights Agent for delivery to the registered holder in lieu of
the Rights Certificate so lost, stolen, destroyed or mutilated. 

Section 7.   Exercise of Rights; Exercise Price; Expiration Date of
Rights.

	Subject to Sections 7(e), 23(b) and 24(b) hereof, the registered holder of any Rights Certificate may
exercise the Rights evidenced thereby (except as otherwise provided herein) in whole or in part at any time after the Distribution Date
and prior to the Close of Business on the Expiration Date by surrender of the Rights Certificate, with the form of election to purchase on
the reverse side thereof duly executed, to the Rights Agent at the office of the Rights Agent designated

 - 11 -

for such purpose, together with
payment of the Exercise Price for each one-thousandth (0.001) of a Preferred Share (or, following a Triggering Event, other securities,
cash or other assets as the case may be) as to which the Rights are exercised. 

	The Exercise Price for each one-thousandth (0.001) of a Preferred Share issuable pursuant to the exercise
of a Right shall initially be $3.00, shall be subject to adjustment from time to time as provided in Sections 11 and 13 hereof and
shall be payable in lawful money of the United States of America in accordance with paragraph (c) below.

	Upon receipt of a Rights Certificate representing exercisable Rights, with the form of election to purchase
duly executed, accompanied by payment of the Exercise Price for the number of one-thousandths (0.001) of a Preferred Share (or,
following a Triggering Event, other securities, cash or other assets as the case may be) to be purchased and an amount equal to any
applicable transfer tax required to be paid by the holder of such Rights Certificate in accordance with Section 9(e) hereof, the
Rights Agent shall, subject to Section 20(k) hereof, thereupon promptly (i) (A) requisition from any transfer agent of
the Preferred Shares (or make available, if the Rights Agent is the transfer agent for the Preferred Shares) a certificate or certificates for
the number of one-thousandths (0.001) of a Preferred Share (or, following a Triggering Event, other securities, cash or other assets as
the case may be) to be purchased and the Company hereby irrevocably authorizes its transfer agent to comply with all such requests or
(B) if the Company shall have elected to deposit the total number of one-thousandths (0.001) of a Preferred Share (or, following a
Triggering Event, other securities, cash or other assets as the case may be) issuable upon exercise of the Rights hereunder with a
depository agent, requisition from the depository agent depository receipts representing such number of one-thousandths (0.001) of a
Preferred Share (or, following a Triggering Event, other securities, cash or other assets as the case may be) as are to be purchased (in
which case certificates for the Preferred Shares (or, following a Triggering Event, other securities, cash or other assets as the case may
be) represented by such receipts shall be deposited by the transfer agent with the depository agent) and the Company hereby directs
the depository agent to comply with such request, (ii) when appropriate, requisition from the Company the amount of cash to be
paid in lieu of issuance of fractional shares in accordance with Section 14 hereof, (iii) after receipt of such certificates or
depository receipts, cause the same to be delivered to or upon the order of the registered holder of such Rights Certificate, registered in
such name or names as may be designated by such holder and (iv) when appropriate, after receipt thereof, deliver such cash to
or upon the order of the registered holder of such Rights Certificate.  The payment of the Exercise Price (as such amount may be
reduced (including to zero) pursuant to Section 11(a)(iii) hereof) and an amount equal to any applicable transfer tax required to
be paid by the holder of such Rights Certificate in accordance with Section 9(e) hereof, may be made in cash or by certified bank
check, cashier's check or bank draft payable to the order of the Company.  In the event that the Company is obligated to issue
securities of the Company other than Preferred Shares, pay cash and/or distribute other property pursuant to Section 11(a)
hereof, the Company will make all arrangements necessary so that such other securities, cash and/or other property are available for
distribution by the Rights Agent, if and when appropriate.

 - 12 -

	In case the registered holder of any Rights Certificate shall exercise less than all the Rights evidenced
thereby, a new Rights Certificate evidencing Rights equivalent to the Rights remaining unexercised shall be issued by the Rights Agent
to the registered holder of such Rights Certificate or to his or her duly authorized assigns, subject to the provisions of Section 14
hereof. 

	Notwithstanding anything in this Agreement to the contrary, from and after the first occurrence of a
Triggering Event, any Rights beneficially owned by (i) an Acquiring Person or an Associate or Affiliate of an Acquiring Person,
(ii) a transferee of an Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee after the Acquiring
Person becomes such (a  "Post-Event Transferee"), (iii) a transferee of an Acquiring Person (or of any such
Associate or Affiliate) who becomes a transferee prior to or concurrently with the Acquiring Person becoming such and receives such
Rights pursuant to either (A) a transfer (whether or not for consideration) from the Acquiring Person to holders of equity interests
in such Acquiring Person or to any Person with whom the Acquiring Person has any continuing agreement, arrangement or
understanding regarding the transferred Rights or (B) a transfer which the Company's Board of Directors has determined is part
of a plan, arrangement or understanding which has as a primary purpose or effect the avoidance of this Section 7(e) (a 
"Pre-Event Transferee") or (iv) any subsequent transferee receiving transferred Rights from a Post-Event
Transferee or a Pre-Event Transferee, either directly or through one or more intermediate transferees, shall become null and void
without any further action and no holder of such Rights shall have any rights whatsoever with respect to such Rights, whether under
any provision of this Agreement or otherwise.  The Company shall use all reasonable efforts to ensure that the provisions of this
Section 7(e) and Section 4(b) hereof are complied with, but shall have no liability to any holder of Rights Certificates or to
any other Person as a result of its failure to make any determinations with respect to an Acquiring Person or any of such Acquiring
Person's Affiliates, Associates or transferees hereunder.

	Notwithstanding anything in this Agreement to the contrary, neither the Rights Agent nor the Company shall
be obligated to undertake any action with respect to a registered holder upon the occurrence of any purported exercise as set forth in
Section 7 unless such registered holder shall, in addition to having complied with the requirements of subsection 7(a), have
(i) completed and signed the certificate contained in the form of election to purchase set forth on the reverse side of the Rights
Certificate surrendered for such exercise and (ii) provided such additional evidence of the identity of the Beneficial Owner (or
former Beneficial Owner) or Affiliates or Associates thereof as the Company shall reasonably request. 

Section 8.   Cancellation and Destruction of Rights Certificates
.
  All Rights Certificates surrendered for the purpose of exercise, transfer, split up, combination or
exchange shall, if surrendered to the Company or to any of its agents, be delivered to the Rights Agent for cancellation or in canceled
form, or, if surrendered to the Rights Agent, shall be canceled by it, and no Rights Certificates shall be issued in lieu thereof except as
expressly permitted by any of the provisions of this Agreement.  The Company shall deliver to the Rights Agent for cancellation and
retirement, and the Rights Agent shall so cancel and retire, any Rights Certificate purchased or acquired by the Company otherwise
than upon the exercise thereof.  The Rights Agent shall deliver all canceled Rights Certificates to the Company, or shall, at the written
request of the Company, destroy  such

 - 13 -

canceled Rights Certificates, and in such case shall deliver a certificate evidencing the
destruction thereof to the Company.

Section 9.   Reservation and Availability of Preferred Shares
.

	The Company covenants and agrees that it will use its best efforts to cause to be reserved and kept
available out of  its authorized and unissued Preferred Shares not reserved for another purpose (and, following the occurrence of a
Triggering Event, out of its authorized and unissued Common Shares and/or other securities), the number of Preferred Shares (and,
following the occurrence of the Triggering Event, Common Shares and/or other securities) that will be sufficient to permit the exercise in
full of all outstanding Rights.

	If the Company shall hereafter list any of its Preferred Shares on a national securities exchange, then so
long as the Preferred Shares (and, following the occurrence of a Triggering Event, Common Shares and/or other securities) issuable
and deliverable upon exercise of the Rights may be listed on such exchange, the Company shall use its best efforts to cause, from and
after such time as the Rights become exercisable (but only to the extent that it is reasonably likely that the Rights will be exercised), all
shares reserved for such issuance to be listed on such exchange upon official notice of issuance upon such exercise. 

	The Company shall use its best efforts to (i) file, as soon as practicable following the earliest date
after the first occurrence of a Triggering Event in which the consideration to be delivered by the Company upon exercise of the Rights is
described in Section 11(a)(ii) or Section 11(a)(iii) hereof, or as soon as is required by law following the Distribution
Date, as the case may be, a registration statement under the Securities Act with respect to the securities purchasable upon exercise of
the Rights on an appropriate form, (ii) cause such registration statement to become effective as soon as practicable after such
filing and (iii) cause such registration statement to remain effective (with a prospectus at all times meeting the requirements of the
Securities Act) until the earlier of (A) the date as of which the Rights are no longer exercisable for such securities and
(B) the date of expiration of the Rights.  The Company may temporarily suspend, for a period not to exceed ninety (90)
days after the date set forth in clause (i) of the first sentence of this Section 9(c), the exercisability of the Rights in order to
prepare and file such registration statement and permit it to become effective.  Upon any such suspension, the Company shall
issue a public announcement stating, and notify the Rights Agent, that the exercisability of the Rights has been temporarily suspended,
as well as a public announcement and notification to the Rights Agent at such time as the suspension is no longer in effect.  The
Company will also take such action as may be appropriate under, or to ensure compliance with, the securities or "blue sky"
laws of the various states in connection with the exercisability of the Rights.  Notwithstanding any provision of this Agreement to the
contrary, the Rights shall not be exercisable in any jurisdiction, unless the requisite qualification in such jurisdiction shall have been
obtained, or an exemption therefrom shall be available, and until a registration statement has been declared and remains
effective.

	The Company covenants and agrees that it will take all such action as may be necessary to ensure that all
Preferred Shares (or other securities of the Company) delivered upon exercise of Rights shall, at the time of delivery of the certificates
for such securities (subject to

 - 14 -

payment of the Exercise Price), be duly and validly authorized and issued and fully paid and
nonassessable.  

	The Company further covenants and agrees that it will pay when due and payable any and all federal and
state transfer taxes and charges which may be payable in respect of the original issuance or delivery of the Rights Certificates or of any
Preferred Shares (or other securities of the Company) upon the exercise of Rights.  The Company shall not, however, be
required to pay any transfer tax which may be payable in respect of any transfer or delivery of Rights Certificates to a person other
than, or the issuance or delivery of certificates or depository receipts for the Preferred Shares (or other securities of the Company) in a
name other than that of, the registered holder of the Rights Certificate evidencing Rights surrendered for exercise or to issue or to
deliver any certificates or depository receipts for Preferred Shares (or other securities of the Company) upon the exercise of any Rights
until any such tax shall have been paid (any such tax being payable by the holder of such Rights Certificate at the time of surrender) or
until it has been established to the Company's satisfaction that no such tax is due.

Section 10.   Record Date
.
  Each Person in whose name any certificate for a number of one-thousandths (0.001) of a
Preferred Share (or other securities of the Company) is issued upon the exercise of Rights shall for all purposes be deemed to
have become the holder of record of Preferred Shares (or other securities of the Company) represented thereby on, and such certificate
shall be dated, the date upon which the Rights Certificate evidencing such Rights was duly surrendered and payment of the Total
Exercise Price with respect to which the Rights have been exercised (and any applicable transfer taxes) was made; provided,
however, that if the date of such surrender and payment is a date upon which the transfer books of the Company are closed,
such Person shall be deemed to have become the record holder of such shares on, and such certificate shall be dated, the next
succeeding Business Day on which the transfer books of the Company are open.  Prior to the exercise of the Rights evidenced thereby,
the holder of a Rights Certificate shall not be entitled to any rights of a holder of Preferred Shares (or other securities of the Company)
for which the Rights shall be exercisable, including, without limitation, the right to vote, to receive dividends or other distributions or to
exercise any preemptive rights, and shall not be entitled to receive any notice of any proceedings of the Company, except as provided
herein.

Section 11.   Adjustment of Exercise Price, Number of Shares or Number of
Rights
.
  The Exercise Price, the number and kind of shares or other property covered by each Right and
the number of Rights outstanding are subject to adjustment from time to time as provided in this Section 11.

	

	 Anything in this Agreement to the contrary notwithstanding, in the event that the Company shall at any
time after the date of this Agreement (A) declare a dividend on the Preferred Shares payable in Preferred Shares,
(B) subdivide the outstanding Preferred Shares, (C) combine the outstanding Preferred Shares (by reverse stock split or
otherwise) into a smaller number of Preferred Shares, or (D) issue any shares of its capital stock in a reclassification of the
Preferred Shares (including any such reclassification in connection with a consolidation or merger in which the Company is the
continuing or surviving corporation), then, in each such event, except as

 - 15 -

otherwise provided in this Section 11 and
Section 7(e) hereof: (1) the Exercise Price in effect at the time of the record date for such dividend or of the effective date
of such subdivision, combination or reclassification shall be adjusted so that the Exercise Price thereafter shall equal the result obtained
by dividing the Exercise Price in effect immediately prior to such time by a fraction (the  "Adjustment Fraction"), the
numerator of which shall be the total number of Preferred Shares (or shares of capital stock issued in such reclassification of the
Preferred Shares) outstanding immediately following such time and the denominator of which shall be the total number of Preferred
Shares outstanding immediately prior to such time; provided, however, that in no event shall the consideration to be
paid upon the exercise of one Right be less than the aggregate par value of the shares of capital stock of the Company issuable upon
exercise of such Right; and (2) the number of one-thousandths (0.001) of a Preferred Share (or share of such other capital stock)
issuable upon the exercise of each Right shall equal the number of one-thousandths (0.001) of a Preferred Share (or share of such
other capital stock) as was issuable upon exercise of a Right immediately prior to the occurrence of the event described in clauses
(A)-(D) of this Section 11(a)(i), multiplied by the Adjustment Fraction; provided, however, that, no such adjustment shall be made
pursuant to this Section 11(a)(i) to the extent that there shall have simultaneously occurred an event described in clause (A), (B),
(C) or (D) of Section 11(n) with a proportionate adjustment being made thereunder.  Each Common Share that shall
become outstanding after an adjustment has been made pursuant to this Section 11(a)(i) shall have associated with it the
number of Rights, exercisable at the Exercise Price and for the number of one-thousandths (0.001) of a Preferred Share (or shares of
such other capital stock) as one Common Share has associated with it immediately following the adjustment made pursuant to this
Section 11(a)(i).

	Subject to Section 24 of this Agreement, in the event that a Triggering Event shall have occurred,
then promptly following such Triggering Event each holder of a Right, except as provided in Section 7(e) hereof, shall thereafter
have the right to receive for each Right, upon exercise thereof in accordance with the terms of this Agreement and payment of the
Exercise Price in effect immediately prior to the occurrence of the Triggering Event, in lieu of a number of one-thousandths (0.001) of a
Preferred Share, such number of Common Shares of the Company as shall equal the quotient obtained by dividing (A) the
product obtained by multiplying (1) the Exercise Price in effect immediately prior to the occurrence of the Triggering Event by
(2) the number of one-thousandths (0.001) of a Preferred Share for which a Right was exercisable (or would have been
exercisable if the Distribution Date had occurred) immediately prior to the first occurrence of a Triggering Event, by (B) fifty
percent (50%) of the Current Per Share Market Price for Common Shares on the date of occurrence of the Triggering Event;
provided, however, that the Exercise Price and the number of Common Shares of the Company so receivable upon
exercise of a Right shall be subject to further adjustment as appropriate in accordance with Section 11(e) hereof to reflect any
events occurring in respect of the Common Shares of the Company after the occurrence of the Triggering Event.

	In lieu of issuing Common Shares in accordance with Section 11(a)(ii) hereof, the Company may, if
the Company's Board of Directors determines that such action is necessary or appropriate and not contrary to the interest of holders of
Rights and, in the event that the number of Common Shares which are authorized by the Company's Certificate of Incorporation

 - 16 -

but not
outstanding or reserved for issuance for purposes other than upon exercise of the Rights are not sufficient to permit the exercise in full
of the Rights, or if any necessary regulatory approval for such issuance has not been obtained by the Company, the Company shall:
(A) determine the excess of (1) the value of the Common Shares issuable upon the exercise of a Right (the 
"Current Value") over (2) the Exercise Price (such excess, the  "Spread") and (B) with
respect to each Right, make adequate provision to substitute for such Common Shares, upon exercise of the Rights, (1) cash,
(2) a reduction in the Exercise Price, (3) other equity securities of the Company (including, without limitation, shares or
units of shares of any series of preferred stock which the Company's Board of Directors has deemed to have the same value as
Common Shares (such shares or units of shares of preferred stock are herein called  "Common Stock
Equivalents")), except to the extent that the Company has not obtained any necessary stockholder or regulatory approval for
such issuance, (4) debt securities of the Company, except to the extent that the Company has not obtained any necessary
stockholder or regulatory approval for such issuance, (5) other assets or (6) any combination of the foregoing, having an
aggregate value equal to the Current Value, where such aggregate value has been determined by the Company's Board of Directors
based upon the advice of a nationally recognized investment banking firm selected by the Company's Board of Directors;
provided, however, that if the Company shall not have made adequate provision to deliver value pursuant to
clause (B) above within thirty (30) days following the later of (x) the first occurrence of a Triggering Event and (y) the
date on which the Company's right of redemption pursuant to Section 23(a) expires (the later of (x) and (y) being referred to
herein as the  "Section 11(a)(ii) Trigger Date"), then the Company shall be obligated to deliver, upon the
surrender for exercise of a Right and without requiring payment of the Exercise Price, Common Shares (to the extent available), except
to the extent that the Company has not obtained any necessary stockholder or regulatory approval for such issuance, and then, if
necessary, cash, which shares and/or cash have an aggregate value equal to the Spread.  If the Company's Board of Directors shall
determine in good faith that it is likely that sufficient additional Common Shares could be authorized for issuance upon exercise in full of
the Rights or that any necessary regulatory approval for such issuance will be obtained, the thirty (30) day period set forth above may
be extended to the extent necessary, but not more than ninety (90) days after the Section 11(a)(iii) Trigger Date, in order that the
Company may seek stockholder approval for the authorization of such additional shares or take action to obtain such regulatory
approval (such period, as it may be extended, the  "Substitution Period").  To the extent that the Company
determines that some action need be taken pursuant to the first and/or second sentences of this Section 11(a)(iii), the Company
(x) shall provide, subject to Section 7(e) hereof, that such action shall apply uniformly to all outstanding Rights and
(y) may suspend the exercisability of the Rights until the expiration of the Substitution Period in order to seek any
authorization of additional shares, to take any action to obtain any required regulatory approval and/or to decide the appropriate form of
distribution to be made pursuant to such first sentence and to determine the value thereof.  In the event of any such suspension, the
Company shall issue a public announcement stating that the exercisability of the Rights has been temporarily suspended, as well as a
public announcement at such time as the suspension is no longer in effect.  For purposes of this Section 11(a)(iii), the value of
the Common Shares shall be the Current Per Share Market Price of the Common Shares on the Section 11(a)(ii) Trigger Date
and the value of any Common Stock Equivalent shall be deemed to have the same value as the Common Shares on such
date.

 - 17 -

	In case the Company shall, at any time after the date of this Agreement, fix a record date for the issuance
of rights, options or warrants to all holders of Preferred Shares entitling such holders (for a period expiring within forty-five (45) calendar
days after such record date) to subscribe for or purchase Preferred Shares or Equivalent Shares or securities convertible into Preferred
Shares or Equivalent Shares at a price per share (or having a conversion price per share, if a security convertible into Preferred Shares
or Equivalent Shares) less than the then Current Per Share Market Price of the Preferred Shares or Equivalent Shares on such record
date, then, in each such case, the Exercise Price to be in effect after such record date shall be determined by multiplying the Exercise
Price in effect immediately prior to such record date by a fraction, the numerator of which shall be the number of Preferred Shares and
Equivalent Shares (if any) outstanding on such record date, plus the number of Preferred Shares or Equivalent Shares, as the case
may be, which the aggregate offering price of the total number of Preferred Shares or Equivalent Shares, as the case may be, to be
offered or issued (and/or the aggregate initial conversion price of the convertible securities to be offered or issued) would purchase at
such current market price, and the denominator of which shall be the number of Preferred Shares and Equivalent Shares (if any)
outstanding on such record date, plus the number of additional Preferred Shares or Equivalent Shares, as the case may be, to be
offered for subscription or purchase (or into which the convertible securities so to be offered are initially convertible); provided,
however, that in no event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par
value of the shares of capital stock of the Company issuable upon exercise of one Right.  In case such subscription price may be
paid in a consideration part or all of which shall be in a form other than cash, the value of such consideration shall be as determined in
good faith by the Company's Board of Directors, whose determination shall be described in a statement filed with the Rights
Agent and shall be binding on the Rights Agent and the holders of the Rights.  Preferred Shares and Equivalent Shares owned by or
held for the account of the Company shall not be deemed outstanding for the purpose of any such computation.  Such adjustment shall
be made successively whenever such a record date is fixed, and in the event that such rights, options or warrants are not so issued, the
Exercise Price shall be adjusted to be the Exercise Price which would then be in effect if such record date had not been fixed.

	In case the Company shall, at any time after the date of this Agreement, fix a record date for the making of
a distribution to all holders of the Preferred Shares or of any class or series of Equivalent Shares (including any such distribution made
in connection with a consolidation or merger in which the Company is the continuing or surviving corporation) of evidences of
indebtedness or assets (other than a regular quarterly cash dividend, if any, or a dividend payable in Preferred Shares) or subscription
rights, options or warrants (excluding those referred to in Section 11(b)), then, in each such case, the Exercise Price to be in
effect after such record date shall be determined by multiplying the Exercise Price in effect immediately prior to such record date by a
fraction, the numerator of which shall be the Current Per Share Market Price of a Preferred Share or an Equivalent Share on such
record date, less the fair market value per Preferred Share or Equivalent Share (as determined in good faith by the Board of Directors
of the Company, whose determination shall be described in a statement filed with the Rights Agent) of the portion of the cash, assets or
evidences of indebtedness so to be distributed or of such subscription rights or warrants applicable to a Preferred Share or Equivalent
Share, as the case may be, and the denominator of which shall be

 - 18 -

such Current Per Share Market Price of a Preferred Share or
Equivalent Share on such record date; provided, however, that in no event shall the consideration to be paid upon
the exercise of one Right be less than the aggregate par value of the shares of capital stock of the Company issuable upon exercise of
one Right.  Such adjustments shall be made successively whenever such a record date is fixed, and in the event that such
distribution is not so made, the Exercise Price shall be adjusted to be the Exercise Price which would have been in effect if such record
date had not been fixed.

	Anything herein to the contrary notwithstanding, no adjustment in the Exercise Price shall be required
unless such adjustment would require an increase or decrease of at least one percent (1%) of the Exercise Price; provided,
however, that any adjustments which by reason of this Section 11(d) are not required to be made shall be carried
forward and taken into account in any subsequent adjustment.  All calculations under this Section 11 shall be made to the
nearest cent or to the nearest ten-thousandth (0.0001) of a Common Share or other share or one hundred-thousandth (0.00001) of a
Preferred Share, as the case may be.  Notwithstanding the first sentence of this Section 11(d), any adjustment required by this
Section 11 shall be made no later than the earlier of (i) three (3) years from the date of the transaction which
requires such adjustment or (ii) the Expiration Date.

	If as a result of an adjustment made pursuant to Section 11(a) or Section 13(a) hereof, the
holder of any Right thereafter exercised shall become entitled to receive any shares of capital stock other than Preferred Shares,
thereafter the number of such other shares so receivable upon exercise of any Right and, if required, the Exercise Price thereof, shall
be subject to adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the provisions with respect
to the Preferred Shares contained in Sections 11(a), 11(b), 11(c), 11(d), 11(g), 11(h), 11(i), 11(j), 11(k) and 11(l), and the
provisions of Sections 7, 9, 10, 13 and 14 with respect to the Preferred Shares shall apply on like terms to any such other
shares. 

	All Rights originally issued by the Company subsequent to any adjustment made to the Exercise Price
hereunder shall evidence the right to purchase, at the adjusted Exercise Price, the number of one-thousandths (0.001) of a Preferred
Share purchasable from time to time hereunder upon exercise of the Rights, all subject to further adjustment as provided
herein. 

	Unless the Company shall have exercised its election as provided in Section 11(h), upon each
adjustment of the Exercise Price as a result of the calculations made in Section 11(b) and (c), each Right outstanding
immediately prior to the making of such adjustment shall thereafter evidence the right to purchase, at the adjusted Exercise Price, that
number of Preferred Shares (calculated to the nearest one hundred-thousandth (0.00001) of a share) obtained by (i) multiplying
(x) the number of Preferred Shares covered by a Right immediately prior to this adjustment, by (y) the Exercise Price in
effect immediately prior to such adjustment of the Exercise Price, and (ii) dividing the product so obtained by the Exercise Price
in effect immediately after such adjustment of the Exercise Price. 

	The Company may elect on or after the date of any adjustment of the Exercise Price as a result of the
calculations made in Section 11(b) or (c) to adjust the number of Rights, in substitution for any adjustment in the number of
Preferred Shares purchasable upon the exercise of a

 - 19 -

Right.  Each of the Rights outstanding after such adjustment of the number
of Rights shall be exercisable for the number of one-thousandths (0.001) of a Preferred Share for which a Right was exercisable
immediately prior to such adjustment.  Each Right held of record prior to such adjustment of the number of Rights shall become that
number of Rights (calculated to the nearest one hundred-thousandth (0.00001)) obtained by dividing the Exercise Price in effect
immediately prior to adjustment of the Exercise Price by the Exercise Price in effect immediately after adjustment of the Exercise Price.
The Company shall make a public announcement of its election to adjust the number of Rights, indicating the record date for the
adjustment, and, if known at the time, the amount of the adjustment to be made.  This record date may be the date on which the
Exercise Price is adjusted or any day thereafter, but, if any Rights Certificates have been issued, shall be at least ten (10) days later
than the date of the public announcement.  If Rights Certificates have been issued, upon each adjustment of the number of Rights
pursuant to this Section 11(h), the Company shall, as promptly as practicable, cause to be distributed to holders of record of
Rights Certificates on such record date Rights Certificates evidencing, subject to Section 14 hereof, the additional Rights to
which such holders shall be entitled as a result of such adjustment, or, at the option of the Company, shall cause to be distributed to
such holders of record in substitution and replacement for the Rights Certificates held by such holders prior to the date of adjustment,
and upon surrender thereof, if required by the Company, new Rights Certificates evidencing all the Rights to which such holders shall
be entitled after such adjustment.  Rights Certificates so to be distributed shall be issued, executed and countersigned in the manner
provided for herein (and may bear, at the option of the Company, the adjusted Exercise Price) and shall be registered in the names of
the holders of record of Rights Certificates on the record date specified in the public announcement.

	Irrespective of any adjustment or change in the Exercise Price or the number of Preferred Shares issuable
upon the exercise of the Rights, the Rights Certificates theretofore and thereafter issued may continue to express the Exercise Price
per one one-thousandth (0.001) of a Preferred Share and the number of one-thousandths (0.001) of a Preferred Share which were
expressed in the initial Rights Certificates issued hereunder. 

	Before taking any action that would cause an adjustment reducing the Exercise Price below the par or
stated value, if any, of the number of one-thousandths (0.001) of a Preferred Share issuable upon exercise of the Rights, the Company
shall take any corporate action which may, in the opinion of its counsel, be necessary in order that the Company may validly and legally
issue as fully paid and nonassessable shares such number of one-thousandths (0.001) of a Preferred Share at such adjusted Exercise
Price. 

	In any case in which this Section 11 shall require that an adjustment in the Exercise Price be made
effective as of a record date for a specified event, the Company may elect to defer until the occurrence of such event the issuing to the
holder of any Right exercised after such record date of the number of one-thousandths (0.001) of a Preferred Share and other capital
stock or securities of the Company, if any, issuable upon such exercise over and above the number of one-thousandths (0.001) of a
Preferred Share and other capital stock or securities of the Company, if any, issuable upon such exercise on the basis of the Exercise
Price in effect prior to such adjustment; provided, however, that the Company shall deliver to such holder a
due bill or other appropriate

 - 20 -

instrument evidencing such holder's right to receive such additional shares (fractional or otherwise) upon
the occurrence of the event requiring such adjustment. 

	Anything in this Section 11 to the contrary notwithstanding, prior to the Distribution Date, the
Company shall be entitled to make such reductions in the Exercise Price, in addition to those adjustments expressly required by this
Section 11, as and to the extent that it in its sole discretion shall determine to be advisable in order that any
(i) consolidation or subdivision of the Preferred or Common Shares, (ii) issuance wholly for cash of any Preferred or
Common Shares at less than the current market price, (iii) issuance wholly for cash of Preferred or Common Shares or securities
which by their terms are convertible into or exchangeable for Preferred or Common Shares, (iv) stock dividends or
(v) issuance of rights, options or warrants referred to in this Section 11, hereafter made by the Company to holders of its
Preferred or Common Shares shall not be taxable to such stockholders. 

	The Company covenants and agrees that, after the Distribution Date, it will not, except as permitted by
Sections 23, 24 or 27 hereof, take (or permit to be taken) any action if at the time such action is taken it is reasonably foreseeable that
such action will diminish substantially or otherwise eliminate the benefits intended to be afforded by the Rights. 

	In the event that the Company shall at any time after the date of this Agreement (A) declare a
dividend on the Common Shares payable in Common Shares, (B) subdivide the outstanding Common Shares,
(C) combine the outstanding Common Shares (by reverse stock split or otherwise) into a smaller number of Common Shares, or
(D) issue any shares of its capital stock in a reclassification of the Common Shares (including any such reclassification in
connection with a consolidation or merger in which the Company is the continuing or surviving corporation), then, in each such event,
except as otherwise provided in this Section 11(a) and Section 7(e) hereof: (1) each Common Share (or shares of
capital stock issued in such reclassification of the Common Shares) outstanding immediately following such time shall have associated
with it the number of Rights as were associated with one Common Share immediately prior to the occurrence of the event described in
clauses (A)-(D) above; (2) the Exercise Price in effect at the time of the record date for such dividend or of the effective date of
such subdivision, combination or reclassification shall be adjusted so that the Exercise Price thereafter shall equal the result obtained
by multiplying the Exercise Price in effect immediately prior to such time by a fraction, the numerator of which shall be the total number
of Common Shares outstanding immediately prior to the event described in clauses (A)-(D) above, and the denominator of which shall
be the total number of Common Shares outstanding immediately after such event; provided, however, that in no
event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the shares of capital
stock of the Company issuable upon exercise of such Right; and (3) the number of one-thousandths (0.001) of a Preferred Share
(or shares of such other capital stock) issuable upon the exercise of each Right outstanding after such event shall equal the number of
one-thousandths (0.001) of a Preferred Share (or shares of such other capital stock) as were issuable with respect to one Right
immediately prior to such event.  Each Common Share that shall become outstanding after an adjustment has been made
pursuant to this Section 11(n) shall have associated with it the number of Rights, exercisable at the Exercise Price and for the
number of

 - 21 -

one-thousandths (0.001) of a Preferred Share (or shares of such other capital stock) as one Common Share has associated
with it immediately following the adjustment made pursuant to this Section 11(n).  If an event occurs which would require an
adjustment under both this Section 11(n) and Section 11(a)(ii) hereof, the adjustment provided for in this
Section 11(n) shall be in addition to, and shall be made prior to, any adjustment required pursuant to Section 11(a)(ii)
hereof.

Section 12.   Certificate of Adjusted Exercise Price or Number of
Shares
.
  Whenever an adjustment is made as provided in Sections 11 and 13 hereof, the Company
shall promptly (a) prepare a certificate setting forth such adjustment and a brief statement of the facts accounting for such
adjustment, (b) file with the Rights Agent and with each transfer agent for the Preferred Shares a copy of such certificate and
(c) mail a brief summary thereof to each holder of a Rights Certificate in accordance with Section 26 hereof.
Notwithstanding the foregoing sentence, the failure of the Company to make such certification or give such notice shall not affect the
validity of such adjustment or the force or effect of the requirement for such adjustment.  The Rights Agent shall be fully protected in
relying on any such certificate and on any adjustment contained therein and shall not be deemed to have knowledge of such
adjustment unless and until it shall have received such certificate.

Section 13.   Consolidation, Merger or Sale or Transfer of Assets or Earning
Power
.

	In the event that, following a Triggering Event, directly or indirectly:

	the Company shall consolidate with, or merge with and into, any other Person (other than a wholly-owned
Subsidiary of the Company in a transaction the principal purpose of which is to change the state of incorporation of the Company and
which complies with Section 11(m) hereof);

	any Person shall consolidate with the Company, or merge with and into the Company and the Company
shall be the continuing or surviving corporation of such consolidation or merger and, in connection with such merger, all or part of the
Common Shares shall be changed into or exchanged for stock or other securities of any other person (or the Company); or

	the Company shall sell or otherwise transfer (or one or more of its Subsidiaries shall sell or otherwise
transfer), in one or more transactions, assets or earning power aggregating fifty percent (50%) or more of the assets or earning power
of the Company and its Subsidiaries (taken as a whole) to any other Person or Persons (other than the Company or one or more of its
wholly owned Subsidiaries in one or more transactions, each of which individually (and together) complies with Section 11(m)
hereof),

then, concurrent with and in each such case, 

	each holder of a Right (except as provided in Section 7(e) hereof) shall thereafter have the right to
receive, upon the exercise thereof at a price equal to the Total Exercise Price applicable immediately prior to the occurrence of the
Section 13 Event in accordance with the terms of this Agreement, such number of validly authorized and issued, fully paid,

 - 22 -

nonassessable and freely tradeable Common Shares of the Principal Party (as hereinafter defined), free of any liens, encumbrances,
rights of first refusal or other adverse claims, as shall be equal to the result obtained by dividing such Total Exercise Price by an amount
equal to fifty percent (50%) of the Current Per Share Market Price of the Common Shares of such Principal Party on the date of
consummation of such Section 13 Event, provided, however, that the Exercise Price and the number of Common
Shares of such Principal Party so receivable upon exercise of a Right shall be subject to further adjustment as appropriate in
accordance with Section 11(e) hereof;

	such Principal Party shall thereafter be liable for, and shall assume, by virtue of such Section 13
Event, all the obligations and duties of the Company pursuant to this Agreement;

	the term "Company" shall thereafter be deemed to refer to such Principal Party, it being
specifically intended that the provisions of Section 11 hereof shall apply only to such Principal Party following the first occurrence
of a Section 13 Event;

	such Principal Party shall take such steps (including, but not limited to, the reservation of a sufficient
number of its Common Shares) in connection with the consummation of any such transaction as may be necessary to ensure that the
provisions hereof shall thereafter be applicable, as nearly as reasonably may be, in relation to its Common Shares thereafter
deliverable upon the exercise of the Rights; and

	upon the subsequent occurrence of any consolidation, merger, sale or transfer of assets or other
extraordinary transaction in respect of such Principal Party, each holder of a Right shall thereupon be entitled to receive, upon exercise
of a Right and payment of the Total Exercise Price as provided in this Section 13(a), such cash, shares, rights, warrants and
other property which such holder would have been entitled to receive had such holder, at the time of such transaction, owned the
Common Shares of the Principal Party receivable upon the exercise of such Right pursuant to this Section 13(a), and such
Principal Party shall take such steps (including, but not limited to, reservation of shares of stock) as may be necessary to permit the
subsequent exercise of the Rights in accordance with the terms hereof for such cash, shares, rights, warrants and other
property.

	For purposes hereof, the "earning power" of the Company and its Subsidiaries shall be
determined in good faith by the Company's Board of Directors on the basis of the operating income of each business operated by the
Company and its Subsidiaries during the three fiscal years preceding the date of such determination (or, in the case of any business not
operated by the Company or any Subsidiary during three full fiscal years preceding such date, during the period such business was
operated by the Company or any Subsidiary).

	For purposes of this Agreement, the term  "Principal Party" shall mean:

	in the case of any transaction described in clause (i) or (ii) of Section 13(a) hereof:
(A) the Person that is the issuer of the securities into which the Common Shares are converted in such merger or consolidation,
or, if there is more than one such issuer, the

 - 23 -

issuer the Common Shares of which have the greatest aggregate market value of shares
outstanding, or (B) if no securities are so issued, (x) the Person that is the other party to the merger, if such Person
survives said merger, or, if there is more than one such Person, the Person the Common Shares of which have the greatest aggregate
market value of shares outstanding or (y) if the Person that is the other party to the merger does not survive the merger, the
Person that does survive the merger (including the Company if it survives) or (z) the Person resulting from the consolidation;
and

	in the case of any transaction described in clause (iii) of Section 13(a) hereof, the Person that
is the party receiving the greatest portion of the assets or earning power transferred pursuant to such transaction or transactions, or, if
more than one Person that is a party to such transaction or transactions receives the same portion of the assets or earning power so
transferred and each such portion would, were it not for the other equal portions, constitute the greatest portion of the assets or earning
power so transferred, or if the Person receiving the greatest portion of the assets or earning power cannot be determined, whichever of
such Persons is the issuer of Common Shares having the greatest aggregate market value of shares outstanding; provided
that in any such case described in the foregoing clause (b)(i) or (b)(ii), if the Common Shares of such Person are not at such time or
have not been continuously over the preceding 12-month period registered under Section 12 of the Exchange Act, then
(1) if such Person is a direct or indirect Subsidiary of another Person the Common Shares of which are and have been so
registered, the term "Principal Party" shall refer to such other Person, or (2) if such Person is a Subsidiary, directly or
indirectly, of more than one Person, the Common Shares of which are and have been so registered, the term "Principal
Party" shall refer to whichever of such Persons is the issuer of Common Shares having the greatest aggregate market value of
shares outstanding, or (3) if such Person is owned, directly or indirectly, by a joint venture formed by two or more Persons that
are not owned, directly or indirectly by the same Person, the rules set forth in clauses (1) and (2) above shall apply to each of the
owners having an interest in the venture as if the Person owned by the joint venture was a Subsidiary of both or all of such joint
venturers, and the Principal Party in each such case shall bear the obligations set forth in this Section 13 in the same ratio as its
interest in such Person bears to the total of such interests.

	The Company shall not consummate any Section 13 Event unless the Principal Party shall have a
sufficient number of authorized Common Shares that have not been issued or reserved for issuance to permit the exercise in full of the
Rights in accordance with this Section 13 and unless prior thereto the Company and such issuer shall have executed and
delivered to the Rights Agent a supplemental agreement confirming that such Principal Party shall, upon consummation of such
Section 13 Event, assume this Agreement in accordance with Sections 13(a) and 13(b) hereof, that all rights of first refusal
or preemptive rights in respect of the issuance of Common Shares of such Principal Party upon exercise of outstanding Rights have
been waived, that there are no rights, warrants, instruments or securities outstanding or any agreements or arrangements which, as a
result of the consummation of such transaction, would eliminate or substantially diminish the benefits intended to be afforded by the
Rights and that such transaction shall not result in a default by such Principal Party under this Agreement, and further providing that, as
soon as practicable after the date of such Section 13 Event, such Principal Party will:

 - 24 -

	prepare and file a registration statement under the Securities Act with respect to the Rights and the
securities purchasable upon exercise of the Rights on an appropriate form, use its best efforts to cause such registration statement to
become effective as soon as practicable after such filing and use its best efforts to cause such registration statement to remain effective
(with a prospectus at all times meeting the requirements of the Securities Act) until the Expiration Date, and similarly comply with
applicable state securities laws;

	use its best efforts to list (or continue the listing of) the Rights and the securities purchasable upon exercise
of the Rights on a national securities exchange or to meet the eligibility requirements for quotation on Nasdaq and list (or continue the
listing of) the Rights and the securities purchasable upon exercise of the Rights on Nasdaq; and

	deliver to holders of the Rights historical financial statements for such Principal Party which comply in all
respects with the requirements for registration on Form 10 (or any successor form) under the Exchange Act.

In the event that at any time after the occurrence of a Triggering Event some or all of the Rights shall not have
been exercised at the time of a transaction described in this Section 13, the Rights which have not theretofore been exercised
shall thereafter be exercisable in the manner described in Section 13(a) (without taking into account any prior adjustment
required by Section 11(a)(ii)).

	In case the "Principal Party" for purposes of Section 13(b) hereof has provision in any of
its authorized securities or in its certificate of incorporation or by-laws or other instrument governing its corporate affairs, which
provision would have the effect of (i) causing such Principal Party to issue (other than to holders of Rights pursuant to
Section 13 hereof), in connection with, or as a consequence of, the consummation of a Section 13 Event, Common Shares
or Equivalent Shares of such Principal Party at less than the then Current Per Share Market Price thereof or securities exercisable for,
or convertible into, Common Shares or Equivalent Shares of such Principal Party at less than such then Current Per Share Market
Price, or (ii) providing for any special payment, tax or similar provision in connection with the issuance of the Common Shares of
such Principal Party pursuant to the provisions of Section 13 hereof, then, in such event, the Company hereby agrees with each
holder of Rights that it shall not consummate any such transaction unless prior thereto the Company and such Principal Party shall
have executed and delivered to the Rights Agent a supplemental agreement providing that the provision in question of such Principal
Party shall have been canceled, waived or amended, or that the authorized securities shall be redeemed, so that the applicable
provision will have no effect in connection with or as a consequence of, the consummation of the proposed
transaction. 

	The Company covenants and agrees that it shall not, at any time after the Distribution Date, effect or permit
to occur any Section 13 Event, if (i) at the time or immediately after such Section 13 Event there are any rights,
warrants or other instruments or securities outstanding or agreements in effect which would substantially diminish or otherwise
eliminate the benefits intended to be afforded by the Rights, (ii) prior to, simultaneously with or immediately after such
Section 13 Event, the stockholders of the Person who constitutes, or would constitute, the

 - 25 -

"Principal Party" for
purposes of Section 13(b) hereof shall have received a distribution of Rights previously owned by such Person or any of its
Affiliates or Associates or (iii) the form or nature of organization of the Principal Party would preclude or limit the exercisability of
the Rights. 

	The provisions of this Section 13 shall similarly apply to successive mergers or consolidations or
sales or other transfers. 

Section 14.   Fractional Rights and Fractional Shares
.

	The Company shall not be required to issue fractions of Rights or to distribute Rights Certificates which
evidence fractional Rights.  In lieu of such fractional Rights, there shall be paid to the registered holders of the Rights Certificates
with regard to which such fractional Rights would otherwise be issuable, an amount in cash equal to the same fraction of the current
market value of a whole Right.  For the purposes of this Section 14(a), the current market value of a whole Right shall be the
closing price of the Rights for the Trading Day immediately prior to the date on which such fractional Rights would have been otherwise
issuable, as determined pursuant to the second sentence of Section 1(i) hereof.

	The Company shall not be required to issue fractions of Preferred Shares (other than fractions that are
integral multiples of one one-thousandth (0.001) of a Preferred Share) upon exercise of the Rights or to distribute certificates which
evidence fractional Preferred Shares (other than fractions that are integral multiples of one one-thousandth (0.001) of a Preferred
Share).  Interests in fractions of Preferred Shares in integral multiples of one one-thousandth (0.001) of a Preferred Share may,
at the election of the Company, be evidenced by depository receipts, pursuant to an appropriate agreement between the Company and
a depository selected by it; provided, that such agreement shall provide that the holders of such depository receipts shall have
all the rights, privileges and preferences to which they are entitled as beneficial owners of the Preferred Shares represented by such
depository receipts.  In lieu of fractional Preferred Shares that are not integral multiples of one one-thousandth (0.001) of a Preferred
Share, the Company shall pay to the registered holders of Rights Certificates at the time such Rights are exercised as herein provided
an amount in cash equal to the same fraction of the current market value of a Preferred Share.  For purposes of this
Section 14(b), the current market value of a Preferred Share shall be (x) one thousand multiplied by (y) the closing
price of a Common Share (as determined pursuant to the second sentence of Section 1(i) hereof) for the Trading Day
immediately prior to the date of such exercise.

	The Company shall not be required to issue fractions of Common Shares or to distribute certificates which
evidence fractional Common Shares upon the exercise or exchange of Rights.  In lieu of such fractional Common Shares, the
Company shall pay to the registered holders of Rights Certificates at the time such Rights are exercised as herein provided an amount
in cash equal to the same fraction of the current market value of a Common Share.  For purposes of this Section 14(c), the
current market value of a Common Share shall be the closing price of a Common Share (as determined pursuant to the second
sentence of Section 1(i) hereof) for the Trading Day immediately prior to the date of such exercise. 

 - 26 -

	The holder of a Right by the acceptance of the Right expressly waives his or her right to receive any
fractional Rights or any fractional shares (other than fractions that are integral multiples of one one-thousandth (0.001) of a Preferred
Share) upon exercise of a Right. 

Section 15.   Rights of Action
.
  All rights of action in respect of this Agreement, excepting the rights of action given to the
Rights Agent pursuant to Section 18 hereof, are vested in the respective registered holders of the Rights Certificates (and, prior
to the Distribution Date, the registered holders of the Common Shares); and any registered holder of any Rights Certificate (or, prior to
the Distribution Date, of the Common Shares), without the consent of the Rights Agent or of the holder of any other Rights Certificate
(or, prior to the Distribution Date, of the Common Shares), may, in his or her own behalf and for his or her own benefit, enforce, and
may institute and maintain any suit, action or proceeding against the Company to enforce, or otherwise act in respect of, his or her right
to exercise the Rights evidenced by such Rights Certificate in the manner provided in such Rights Certificate and in this Agreement.
Without limiting the foregoing or any remedies available to the holders of Rights, it is specifically acknowledged that the holders of
Rights would not have an adequate remedy at law for any breach of this Agreement and will be entitled to specific performance of the
obligations under, and injunctive relief against actual or threatened violations of, the obligations of any Person subject to this
Agreement.

Section 16.   Agreement of Rights Holders
.
  Every holder of a Right, by accepting the same, consents and agrees with the Company and the
Rights Agent and with every other holder of a Right that:

	prior to the Distribution Date, the Rights will be transferable only in connection with the transfer of the
Common Shares;

	after the Distribution Date, the Rights Certificates are transferable only on the registry books of the Rights
Agent if surrendered at the principal office or offices of the Rights Agent designated for such purposes, duly endorsed or accompanied
by a proper instrument of transfer and with the appropriate forms and certificates fully executed; 

	subject to Sections 6(a) and 7(f) hereof, the Company and the Rights Agent may deem and treat the
person in whose name the Rights Certificate (or, prior to the Distribution Date, the associated Common Shares certificate) is
registered as the absolute owner thereof and of the Rights evidenced thereby (notwithstanding any notations of ownership or writing on
the Rights Certificates or the associated Common Shares certificate made by anyone other than the Company or the Rights Agent) for
all purposes whatsoever, and neither the Company nor the Rights Agent shall be affected by any notice to the contrary; and

	notwithstanding anything in this Agreement to the contrary, neither the Company nor the Rights Agent shall
have any liability to any holder of a Right or other Person as a result of its inability to perform any of its obligations under this
Agreement by reason of any preliminary or permanent injunction or other order, decree or ruling issued by a court of competent
jurisdiction or by a governmental, regulatory, or administrative agency or commission, or any statute, rule, regulation , or executive
order promulgated or enacted by any governmental authority,

 - 27 -

prohibiting or otherwise restraining performance or such obligation;
provided however, the Company must use its best efforts to have any such injunction, order, decree, or ruling lifted or otherwise
overturned as promptly as practicable. 

Section 17.   Rights Certificate Holder Not Deemed a Stockholder
.
  No holder, as such, of any Rights Certificate shall be entitled to vote, receive dividends or be
deemed for any purpose to be the holder of the Preferred Shares or any other securities of the Company which may at any time be
issuable on the exercise of the Rights represented thereby, nor shall anything contained herein or in any Rights Certificate be construed
to confer upon the holder of any Rights Certificate, as such, any of the rights of a stockholder of the Company or any right to vote for
the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any
corporate action, or to receive notice of meetings or other actions affecting stockholders (except as specifically provided in
Section 25 hereof), or to receive dividends or subscription rights, or otherwise, until the Right or Rights evidenced by such Rights
Certificate shall have been exercised in accordance with the provisions hereof.

Section 18.   Concerning the Rights Agent
.

	The Company agrees to pay to the Rights Agent reasonable compensation for all services rendered by it
hereunder and, from time to time, on demand of the Rights Agent, its reasonable expenses and counsel fees and other disbursements
incurred in the administration and execution of this Agreement and the exercise and performance of its duties hereunder.  The
Company also agrees to indemnify the Rights Agent for, and to hold it harmless against, any loss, liability or expense, incurred without
gross negligence, bad faith or willful misconduct on the part of the Rights Agent, for anything done or omitted by the Rights Agent in
connection with the acceptance and administration of this Agreement, including the costs and expenses of defending against any claim
of liability in the premises.  In no event will the Rights Agent be liable for special, indirect, incidental or consequential loss or damage of
any kind whatsoever, even if the Rights Agent has been advised of the possibility of such loss or damage. 

	The Rights Agent shall be protected and shall incur no liability for, or in respect of any action taken,
suffered or omitted by it in connection with, its administration of this Agreement in reliance upon any Rights Certificate or certificate for
the Preferred Shares or Common Shares or for other securities of the Company, instrument of assignment or transfer, power of
attorney, endorsement, affidavit, letter, notice, direction, consent, certificate, statement or other paper or document reasonably believed
by it to be genuine and to be signed, executed and, where necessary, verified or acknowledged, by the proper Person or
Persons, or otherwise upon the advice of counsel as set forth in Section 20 hereof. 

Section 19.   Merger or Consolidation or Change of Name of Rights
Agent
.

	Any corporation into which the Rights Agent or any successor Rights Agent may be merged or with which it
may be consolidated, or any corporation resulting from any merger or consolidation to which the Rights Agent or any successor Rights
Agent shall be a party, or any corporation succeeding to the corporate trust business of the Rights Agent or any successor Rights

 - 28 -

Agent, shall be the successor to the Rights Agent under this Agreement without the execution or filing of any paper or any further act on
the part of any of the parties hereto; provided, however, that such corporation would be eligible for appointment as a
successor Rights Agent under the provisions of Section 21 hereof.  In case at the time such successor Rights Agent shall
succeed to the agency created by this Agreement, any of the Rights Certificates shall have been countersigned but not delivered, any
such successor Rights Agent may adopt the countersignature of the predecessor Rights Agent and deliver such Rights Certificates so
countersigned; and in case at that time any of the Rights Certificates shall not have been countersigned, any successor Rights
Agent may countersign such Rights Certificates either in the name of the predecessor Rights Agent or in the name of the successor
Rights Agent; and in all such cases such Rights Certificates shall have the full force provided in the Rights Certificates and in this
Agreement.

	In case at any time the name of the Rights Agent shall be changed and at such time any of the Rights
Certificates shall have been countersigned but not delivered, the Rights Agent may adopt the countersignature under its prior name and
deliver Rights Certificates so countersigned; and in case at that time any of the Rights Certificates shall not have been countersigned,
the Rights Agent may countersign such Rights Certificates either in its prior name or in its changed name; and in all such cases
such Rights Certificates shall have the full force provided in the Rights Certificates and in this Agreement. 

Section 20.   Duties of Rights Agent
.
  The Rights Agent undertakes the duties and obligations imposed by this Agreement upon the
following terms and conditions, by all of which the Company and the holders of Rights Certificates, by their acceptance thereof, shall be
bound:

	The Rights Agent may consult with legal counsel (who may be legal counsel for the Company), and the
opinion of such counsel shall be full and complete authorization and protection to the Rights Agent as to any action taken or omitted by
it in good faith and in accordance with such opinion. 

	Whenever in the performance of its duties under this Agreement the Rights Agent shall deem it necessary
or desirable that any fact or matter (including, without limitation, the identity of any Acquiring Person and the determination of Current
Per Share Market Price) be proved or established by the Company prior to taking or suffering any action hereunder, such fact or matter
(unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and established
by a certificate signed by any one of the Chairman of the Board, the Chief Executive Officer, the President, any Vice President, the
Chief Financial Officer, the Secretary or any Assistant Secretary of the Company and delivered to the Rights Agent; and such certificate
shall be full authorization to the Rights Agent for any action taken or suffered in good faith by it under the provisions of this Agreement
in reliance upon such certificate. 

	The Rights Agent shall be liable hereunder to the Company and any other Person only for its own gross
negligence, bad faith or willful misconduct. 

	The Rights Agent shall not be liable for or by reason of any of the statements of fact or recitals contained in
this Agreement or in the Rights Certificates (except its

 - 29 -

countersignature thereof) or be required to verify the same, but all such
statements and recitals are and shall be deemed to have been made by the Company only. 

	The Rights Agent shall not be under any responsibility in respect of the validity of this Agreement or the
execution and delivery hereof (except the due execution hereof by the Rights Agent) or in respect of the validity or execution of any
Rights Certificate (except its countersignature thereof); nor shall it be responsible for any breach by the Company of any covenant or
condition contained in this Agreement or in any Rights Certificate; nor shall it be responsible for any change in the exercisability of the
Rights or any adjustment in the terms of the Rights (including the manner, method or amount thereof) provided for in Sections 3,
11, 13, 23 or 24, or the ascertaining of the existence of facts that would require any such change or adjustment (except with respect to
the exercise of Rights evidenced by Rights Certificates after receipt by the Rights Agent of a certificate furnished pursuant to
Section 12 describing such change or adjustment); nor shall it by any act hereunder be deemed to make any representation or
warranty as to the authorization or reservation of any Preferred Shares to be issued pursuant to this Agreement or any Rights
Certificate or as to whether any Preferred Shares will, when issued, be validly authorized and issued, fully paid and
nonassessable. 

	The Company agrees that it will perform, execute, acknowledge and deliver or cause to be performed,
executed, acknowledged and delivered all such further and other acts, instruments and assurances as may reasonably be required by
the Rights Agent for the carrying out or performing by the Rights Agent of the provisions of this Agreement. 

	The Rights Agent is hereby authorized and directed to accept instructions with respect to the performance
of its duties hereunder from any one of the Chairman of the Board, the Chief Executive Officer, the President, any Vice President, the
Chief Financial Officer, the Secretary or any Assistant Secretary of the Company, and to apply to such officers for advice or instructions
in connection with its duties, and it shall not be liable for any action taken or suffered by it in good faith in accordance with instructions
of any such officer or for any delay in acting while waiting for those instructions.  Any application by the Rights Agent for written
instructions from the Company may, at the option of the Rights Agent, set forth in writing any action proposed to be taken or omitted by
the Rights Agent under this Rights Agreement and the date on and/or after which such action shall be taken or such omission shall be
effective.  The Rights Agent shall not be liable for any action taken by, or omission of, the Rights Agent in accordance with a proposal
included in any such application on or after the date specified in such application (which date shall not be less than five (5) Business
Days after the date on which any officer of the Company actually receives such application, unless any such officer shall have
consented in writing to an earlier date) unless, prior to taking any such action (or the effective date in the case of an omission), the
Rights Agent shall have received written instructions in response to such application specifying the action to be taken or
omitted.

	The Rights Agent and any stockholder, director, officer or employee of the Rights Agent may buy, sell or
deal in any of the Rights or other securities of the Company or become pecuniarily interested in any transaction in which the Company
may be interested, or

 - 30 -

contract with or lend money to the Company or otherwise act as fully and freely as though it were not Rights
Agent under this Agreement.  Nothing herein shall preclude the Rights Agent from acting in any other capacity for the Company
or for any other legal entity.

	The Rights Agent may execute and exercise any of the rights or powers hereby vested in it or perform any
duty hereunder either itself or by or through its attorneys or agents, and the Rights Agent shall not be answerable or accountable for
any act, default, neglect or misconduct of any such attorneys or agents or for any loss to the Company resulting from any such act,
default, neglect or misconduct, provided reasonable care was exercised in the selection and continued employment
thereof. 

	No provision of this Agreement shall require the Rights Agent to expend or risk its own funds or otherwise
incur any financial liability in the performance of any of its duties hereunder or in the exercise of its rights if there shall be
reasonable grounds for believing that repayment of such funds or adequate indemnification against such risk or liability is not
reasonably assured to it. 

	If, with respect to any Rights Certificate surrendered to the Rights Agent for exercise or transfer, the
certificate attached to the form of assignment or form of election to purchase, as the case may be, has either not been completed or
indicates an affirmative response to clause 1 and/or 2 thereof, the Rights Agent shall not take any further action with respect to
such requested exercise or transfer without first consulting with the Company. 

Section 21.   Change of Rights Agent
.
  The Rights Agent or any successor Rights Agent may resign and be discharged from its duties
under this Agreement upon thirty (30) days' notice in writing mailed to the Company and to each transfer agent of the Preferred Shares
and the Common Shares by registered or certified mail, and to the holders of the Rights Certificates by first-class mail.  The Company
may remove the Rights Agent or any successor Rights Agent upon thirty (30) days' notice in writing, mailed to the Rights Agent or
successor Rights Agent, as the case may be, and to each transfer agent of the Preferred Shares and the Common Shares by
registered or certified mail, and to the holders of the Rights Certificates by first-class mail.  In the event the transfer agency relationship
in effect between the Company and the Rights Agent terminates, the Rights Agent will be deemed to resign automatically on the
effective date of such termination; and any required notice will be sent by the Company. If the Rights Agent shall resign or be removed
or shall otherwise become incapable of acting, the Company shall appoint a successor to the Rights Agent.  If the Company shall fail to
make such appointment within a period of thirty (30) days after giving notice of such removal or after it has been notified in writing of
such resignation or incapacity by the resigning or incapacitated Rights Agent or by the holder of a Rights Certificate (who shall, with
such notice, submit his or her Rights Certificate for inspection by the Company), then the registered holder of any Rights Certificate
may apply to any court of competent jurisdiction for the appointment of a new Rights Agent.  After appointment, the successor Rights
Agent shall be vested with the same powers, rights, duties and responsibilities as if it had been originally named as Rights Agent
without further act or deed; but the predecessor Rights Agent shall deliver and transfer to the successor Rights Agent any property at
the time held by it hereunder, and execute and deliver any

 - 31 -

further assurance, conveyance, act or deed necessary for the purpose.  Any
successor Rights Agent, whether appointed by the Company or by such a court, shall be (a) a corporation organized and doing
business under the laws of the United States (or of any state of the United States) in good standing, which is authorized under such
laws to exercise corporate trust or stock transfer powers and is subject to supervision or examination by federal or state authority and
which has, at the time of its appointment as Rights Agent, a combined capital and surplus of at least $50,000,000, or (b) an affiliate of a
corporation described in clause (a) of this sentence.

Not later than the effective date of any such appointment, the Company shall file notice thereof in writing with
the predecessor Rights Agent and each transfer agent of the Preferred Shares and the Common Shares, and mail a notice thereof in
writing to the registered holders of the Rights Certificates.  Failure to give any notice provided for in this Section 21, however, or
any defect therein, shall not affect the legality or validity of the resignation or removal of the Rights Agent or the appointment of the
successor Rights Agent, as the case may be.

Section 22.   Issuance of New Rights Certificates
.
  Notwithstanding any of the provisions of this Agreement or of the Rights to the contrary, the
Company may, at its option, issue new Rights Certificates evidencing Rights in such form as may be approved by its Board of Directors
to reflect any adjustment or change in the Exercise Price and the number or kind or class of shares or other securities or property
purchasable under the Rights Certificates made in accordance with the provisions of this Agreement.  In addition, in connection with the
issuance or sale of Common Shares following the Distribution Date and prior to the redemption or expiration of the Rights, the
Company (a) shall, with respect to Common Shares so issued or sold pursuant to the exercise of stock options or under any
employee plan or arrangement or upon the exercise, conversion or exchange of other securities of the Company outstanding at the
date hereof or upon the exercise, conversion or exchange of securities hereinafter issued by the Company and (b) may, in any
other case, if deemed necessary or appropriate by the Board of Directors of the Company, issue Rights Certificates representing the
appropriate number of Rights in connection with such issuance or sale; provided, however, that (i) no such
Rights Certificate shall be issued and this sentence shall be null and void ab initio if, and to the extent that, such issuance or
this sentence would create a significant risk of or result in material adverse tax consequences to the Company or the Person to whom
such Rights Certificate would be issued or would create a significant risk of or result in such options' or employee plans' or
arrangements' failing to qualify for otherwise available special tax treatment and (ii) no such Rights Certificate shall be issued if,
and to the extent that, appropriate adjustment shall otherwise have been made in lieu of the issuance thereof.

Section 23.   Redemption
.

	The Company may, at its option and with the approval of the Board of Directors, at any time prior to the
Close of Business on the earlier of (i) the fifth day following the Shares Acquisition Date (or such later date as may be determined
by action of the Company's Board of Directors and publicly announced by the Company) and (ii) the Final Expiration Date,
redeem all but not less than all the then outstanding Rights at a redemption price of $0.001 per Right, appropriately adjusted to reflect
any stock split, stock dividend or similar transaction occurring after

 - 32 -

the date hereof (such redemption price being herein referred to as
the  "Redemption Price") and the Company may, at its option, pay the Redemption Price either in Common Shares
(based on the Current Per Share Market Price thereof at the time of redemption) or cash.  Such redemption of the Rights by the
Company may be made effective at such time, on such basis and with such conditions as the Board of Directors in its sole discretion
may establish.  The date on which the Board of Directors elects to make the redemption effective shall be referred to as the 
"Redemption Date."

	Immediately upon the action of the Board of Directors of the Company ordering the redemption of the
Rights, evidence of which shall have been filed with the Rights Agent, and without any further action and without any notice, the right to
exercise the Rights will terminate and the only right thereafter of the holders of Rights shall be to receive the Redemption Price. 
The Company shall promptly give public notice of any such redemption; provided, however, that the failure to give, or
any defect in, any such notice shall not affect the validity of such redemption.  Within ten (10) days after the action of the Board of
Directors ordering the redemption of the Rights, the Company shall give notice of such redemption to the Rights Agent and the holders
of the then outstanding Rights by mailing such notice to all such holders at their last addresses as they appear upon the registry books
of the Rights Agent or, prior to the Distribution Date, on the registry books of the transfer agent for the Common Shares.  Any notice
which is mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice.  Each such notice
of redemption will state the method by which the payment of the Redemption Price will be made.  Neither the Company nor any of its
Affiliates or Associates may redeem, acquire or purchase for value any Rights at any time in any manner other than that specifically set
forth in this Section 23 or in Section 24 hereof, and other than in connection with the purchase of Common Shares prior to
the Distribution Date.

Section 24.   Exchange
.

	Subject to applicable laws, rules and regulations, and subject to subsection 24(c) below, the Company
may, at its option, by action of the Board of Directors, at any time after the occurrence of a Triggering Event, exchange all or part of the
then outstanding and exercisable Rights (which shall not include Rights that have become void pursuant to the provisions of
Section 7(e) hereof) for Common Shares at an exchange ratio of one Common Share per Right, appropriately adjusted to reflect
any stock split, stock dividend or similar transaction occurring after the date hereof (such exchange ratio being hereinafter referred to as
the  "Exchange Ratio").  Notwithstanding the foregoing, the Board of Directors shall not be empowered to
effect such exchange at any time after any Person (other than the Company, any Subsidiary of the Company, any employee benefit
plan of the Company or any such Subsidiary, or any entity holding Common Shares for or pursuant to the terms of any such plan),
together with all Affiliates and Associates of such Person, becomes the Beneficial Owner of 50% or more of the Common Shares then
outstanding.

	Immediately upon the action of the Board of Directors ordering the exchange of any Rights pursuant to
subsection 24(a) of this Section 24 and without any further action and without any notice, the right to exercise such Rights
shall terminate and the only right thereafter of a

 - 33 -

holder of such Rights shall be to receive that number of Common Shares equal to the
number of such Rights held by such holder multiplied by the Exchange Ratio.  The Company shall give public notice of any such
exchange; provided, however, that the failure to give, or any defect in, such notice shall not affect the validity of such
exchange.  The Company shall mail a notice of any such exchange to all of the holders of such Rights at their last addresses as they
appear upon the registry books of the Rights Agent.  Any notice which is mailed in the manner herein provided shall be deemed given,
whether or not the holder receives the notice.  Each such notice of exchange will state the method by which the exchange of the
Common Shares for Rights will be effected and, in the event of any partial exchange, the number of Rights which will be exchanged.
Any partial exchange shall be effected pro rata based on the number of Rights (other than Rights which have become void pursuant to
the provisions of Section 7(e) hereof) held by each holder of Rights.

	In the event that there shall not be sufficient Common Shares issued but not outstanding or authorized but
unissued to permit any exchange of Rights as contemplated in accordance with Section 24(a), the Company shall either take
such action as may be necessary to authorize additional Common Shares for issuance upon exchange of the Rights or alternatively, at
the option of a majority of the Board of Directors, with respect to each Right (i) pay cash in an amount equal to the Current Value
(as hereinafter defined), in lieu of issuing Common Shares in exchange therefor, or (ii) issue debt or equity securities or a
combination thereof, having a value equal to the Current Value, in lieu of issuing Common Shares in exchange for each such Right,
where the value of such securities shall be determined by a nationally recognized investment banking firm selected by majority vote of
the Board of Directors, or (iii) deliver any combination of cash, property, Common Shares and/or other securities having a value
equal to the Current Value in exchange for each Right.  For purposes of this Section 24(c) only, the Current Value shall
mean the product of the Current Per Share Market Price of Common Shares on the date of the occurrence of the event described
above in subsection (a), multiplied by the number of Common Shares for which the Right otherwise would be exchangeable if there
were sufficient shares available.  To the extent that the Company determines that some action need be taken pursuant to
clauses (i), (ii) or (iii) of this Section 24(c), the Board of Directors may temporarily suspend the exercisability of the Rights
for a period of up to sixty (60) days following the date on which the event described in Section 24(a) shall have occurred, in order
to seek any authorization of additional Common Shares and/or to decide the appropriate form of distribution to be made pursuant to the
above provision and to determine the value thereof.  In the event of any such suspension, the Company shall issue a public
announcement stating that the exercisability of the Rights has been temporarily suspended.

	The Company shall not be required to issue fractions of Common Shares or to distribute certificates which
evidence fractional Common Shares.  In lieu of such fractional Common Shares, there shall be paid to the registered holders of
the Rights Certificates with regard to which such fractional Common Shares would otherwise be issuable, an amount in cash equal to
the same fraction of the current market value of a whole Common Share (as determined pursuant to the second sentence of
Section 1(j) hereof).

	The Company may, at its option, by majority vote of the Board of Directors, at any time before any Person
has become an Acquiring Person, exchange all or part of the then outstanding Rights for rights of substantially equivalent value, as
determined reasonably and with good faith by the Board of Directors based upon the advice of one or more nationally recognized
investment banking firms. 

 - 34 -

	Immediately upon the action of the Board of Directors ordering the exchange of any Rights pursuant to
subsection 24(e) of this Section 24 and without any further action and without any notice, the right to exercise such Rights shall
terminate and the only right thereafter of a holder of such Rights shall be to receive that number of rights in exchange therefor as has
been determined by the Board of Directors in accordance with subsection 24(e) above.  The Company shall give public
notice of any such exchange; provided, however, that the failure to give, or any defect in, such notice shall not affect
the validity of such exchange.  The Company shall mail a notice of any such exchange to all of the holders of such Rights at their last
addresses as they appear upon the registry books of the transfer agent for the Common Shares of the Company.  Any notice which is
mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice.  Each such notice of
exchange will state the method by which the exchange of the Rights will be effected.

Section 25.   Notice of Certain Events
.

	In case the Company shall propose to effect or permit to occur any Triggering Event or Section 13
Event, the Company shall give notice thereof to each holder of Rights in accordance with Section 26 hereof at least twenty (20)
days prior to occurrence of such Triggering Event or such Section 13 Event. 

	In case any Triggering Event or Section 13 Event shall occur, then, in any such case, the Company
shall as soon as practicable thereafter give to each holder of a Rights Certificate, in accordance with Section 26 hereof, a notice
of the occurrence of such event, which shall specify the event and the consequences of the event to holders of Rights under
Sections 11(a)(ii) and 13 hereof. 

Section 26.   Notices
.
  Notices or demands authorized by this Agreement to be given or made by the Rights Agent
or by the holder of any Rights Certificate to or on the Company shall be sufficiently given or made if sent by first-class mail, postage
prepaid, addressed (until another address is filed in writing with the Rights Agent) as follows:

Intraware, Inc.

                   25 Orinda Way

                   Orinda, California  94563

                   Attention:  General Counsel

 - 35 -

                   with a copy to:

                   Wilson Sonsini Goodrich & Rosati

                   Professional Corporation

                   650 Page Mill Road

                   Palo Alto, California 94304-1050

                   Attention:  N. Anthony Jeffries 

Subject to the provisions of Section 21 hereof, any notice or demand authorized by this Agreement to be
given or made by the Company or by the holder of any Rights Certificate to or on the Rights Agent shall be sufficiently given or made if
sent by first-class mail, postage prepaid, addressed (until another address is filed in writing with the Company) as follows:

Computershare Investor Services LLC

                   655 Montgomery Street, Suite 830

                   San Francisco, CA  94111

                   Attention:  Pamela E. Herlich, Relationship Manager

Notices or demands authorized by this Agreement to be given or made by the Company or the Rights Agent to
the holder of any Rights Certificate shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed to such
holder at the address of such holder as shown on the registry books of the Company.

Section 27.   Supplements and Amendments
.
  Prior to the occurrence of a Distribution Date, the Company may supplement or amend this
Agreement in any respect without the approval of any holders of Rights and the Rights Agent shall, if the Company so directs, execute
such supplement or amendment.  From and after the occurrence of a Distribution Date, the Company and the Rights Agent may from
time to time supplement or amend this Agreement without the approval of any holders of Rights in order to (i) cure any ambiguity,
(ii) correct or supplement any provision contained herein which may be defective or inconsistent with any other provisions herein,
(iii) shorten or lengthen any time period hereunder or (iv) to change or supplement the provisions hereunder in any manner
that the Company may deem necessary or desirable and that shall not adversely affect the interests of the holders of Rights (other than
an Acquiring Person or an Affiliate or Associate of an Acquiring Person); provided, this Agreement may not be supplemented
or amended to lengthen, pursuant to clause (iii) of this sentence, (A) a time period relating to when the Rights may be
redeemed at such time as the Rights are not then redeemable or (B) any other time period unless such lengthening is for the
purpose of protecting, enhancing or clarifying the rights of, and/or the benefits to, the holders of Rights (other than an Acquiring Person
or an Affiliate or Associate of an Acquiring Person).  Upon the delivery of a certificate from an appropriate officer of the Company that
states that the proposed supplement or amendment is in compliance with the terms of this Section 27, the Rights Agent shall
execute such supplement or amendment.  Prior to the Distribution Date, the interests of the holders of Rights shall be deemed
coincident with the interests of the holders of Common Shares.

 - 36 -

Section 28.   Successors
.
  All the covenants and provisions of this Agreement by or for the benefit of the Company or the
Rights Agent shall bind and inure to the benefit of their respective successors and assigns hereunder.

Section 29.   Determinations and Actions by the Board of Directors, etc
.
  For all purposes of this Agreement, any calculation of the number of Common Shares outstanding
at any particular time, including for purposes of determining the particular percentage of such outstanding Common Shares of which
any Person is the Beneficial Owner, shall be made in accordance with the last sentence of Rule 13d-3(d)(1)(i) of the General
Rules and Regulations under the Exchange Act.  The Board of Directors of the Company shall have the exclusive power and authority
to administer this Agreement and to exercise all rights and powers specifically granted to the Board, or the Company, or as may be
necessary or advisable in the administration of this Agreement, including, without limitation, the right and power (i) to interpret the
provisions of this Agreement and (ii) to make all determinations deemed necessary or advisable for the administration of this
Agreement (including a determination to redeem or not redeem the Rights or to amend the Agreement).  All such actions, calculations,
interpretations and determinations (including, for purposes of clause (y) below, all omissions with respect to the foregoing) which
are done or made by the Board in good faith, shall (x) be final, conclusive and binding on the Company, the Rights Agent, the
holders of the Rights Certificates and all other parties and (y) with respect to claims specifically arising from the Agreement, not
subject the Board to any liability to the holders of the Rights.

Section 30.   Benefits of this Agreement
.
  Nothing in this Agreement shall be construed to give to any Person other than the Company, the
Rights Agent and the registered holders of the Rights Certificates (and, prior to the Distribution Date, the Common Shares) any legal or
equitable right, remedy or claim pursuant to this Agreement; but this Agreement shall be for the sole and exclusive benefit of the
Company, the Rights Agent and the registered holders of the Rights Certificates (and, prior to the Distribution Date, the Common
Shares).

Section 31.   Severability
.
  If any term, provision, covenant or restriction of this Agreement is held by a court of competent
jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of
this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated; provided,
however, that notwithstanding anything in this Agreement to the contrary, if any such term, provision, covenant or restriction is
held by such court or authority to be invalid, void or unenforceable and the Board of Directors of the Company determines in its good
faith judgment that severing the invalid language from this Agreement would adversely affect the purpose or effect of this Agreement,
the right of redemption set forth in Section 23 hereof shall be reinstated and shall not expire until the Close of Business on the
tenth day following the date of such determination by the Board of Directors.

Section 32.   Governing Law
.
  This Agreement and each Right and each Rights Certificate issued hereunder shall be deemed to
be a contract made under the laws of the State of Delaware and for all purposes shall be governed by and construed in accordance
with the laws of such State applicable to contracts to be made and performed entirely within such State.

 - 37 -

Section 33.   Counterparts
.
  This Agreement may be executed in any number of counterparts and each of such counterparts
shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same
instrument.

Section 34.   Descriptive Headings
.
  Descriptive headings of the several Sections of this Agreement are inserted for convenience only
and shall not control or affect the meaning or construction of any of the provisions hereof.

Section 35.   Force Majeure. Notwithstanding anything to the contrary
contained herein, Rights Agent shall not be liable for any delays or failures in performance resulting from acts beyond its reasonable
control including, without limitation, acts of God, terrorist acts, shortage of supply, breakdowns or malfunctions, interruptions or
malfunction of computer facilities, or loss of data due to power failures or mechanical difficulties with information storage or retrieval
systems, labor difficulties, war, or civil unrest.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the day and
year first above written.

	
"COMPANY" 

	
INTRAWARE, INC.

By: /s/ Paul D. Warenski        

Name:  Paul D. Warenski        

Title: Senior Vice President, General Counsel and Secretary        

	
"RIGHTS AGENT" 

	
COMPUTERSHARE INVESTOR

SERVICES LLC 

By: /s/ Dennis V. Moccia        

Name:  Dennis V. Moccia        

Title: Managing Director        

 - 38 -

EXHIBIT A

CERTIFICATE OF DESIGNATION OF RIGHTS, PREFERENCES AND PRIVILEGES OF SERIES D
PARTICIPATING PREFERRED STOCK OF INTRAWARE, INC. 

The undersigned, Peter Jackson, does hereby certify:

	That he is duly elected and acting President and Chief Executive Officer of Intraware, Inc., a Delaware
corporation (the "Corporation").

	That pursuant to the authority conferred upon the Board of Directors by the Amended and Restated
Certificate of Incorporation of the said Corporation, the said Board of Directors of the Corporation on September 8, 2005 adopted the
following resolutions creating a series of 0.0001 shares of Preferred Stock designated as Series D Participating Preferred
Stock:

"RESOLVED, that pursuant to the authority vested in the Board of Directors of the corporation by the
Amended and Restated Certificate of Incorporation, the Board of Directors does hereby provide for the issue of a series of Preferred
Stock of the Corporation and does hereby fix and herein state and express the designations, powers, preferences and relative and
other special rights and the qualifications, limitations and restrictions of such series of Preferred Stock as follows:

Section 1.   Designation and Amount.  The shares of such series shall be
designated as  "Series D Participating Preferred Stock." The Series D Participating Preferred Stock shall have a
par value of $0.0001 per share, and the number of shares constituting such series shall be 300,000.

Section 2.   Proportional Adjustment.  In the event that the Corporation
shall at any time after the issuance of any share or shares of Series D Participating Preferred Stock (i) declare any dividend on
Common Stock of the Corporation ("Common Stock") payable in shares of Common Stock, (ii) subdivide the
outstanding Common Stock or (iii) combine the outstanding Common Stock into a smaller number of shares, then in each such
case the Corporation shall simultaneously effect a proportional adjustment to the number of outstanding shares of Series D
Participating Preferred Stock.

Section 3.   Dividends and Distributions.

	Subject to the prior and superior right of the holders of any shares of any series of Preferred Stock ranking
prior and superior to the shares of Series D Participating Preferred Stock with respect to dividends, the holders of shares of Series D
Participating Preferred Stock shall be entitled to receive when, as and if declared by the Board of Directors out of funds legally available
for the purpose, quarterly dividends payable in cash on the last day of January, April, July, and October in each year (each such date
being referred to herein as a  "Quarterly Dividend Payment Date"), commencing on the first Quarterly Dividend
Payment Date after the first issuance of a share or fraction of a share of Series D Participating Preferred Stock, in an amount per share
(rounded to the nearest cent) equal to 1,000 times the aggregate per share amount of all cash dividends, and 1,000 times the
aggregate per share amount (payable in kind) of all non-cash dividends or other distributions other than a dividend payable in shares of
Common Stock or a subdivision of the outstanding shares of Common Stock (by reclassification or otherwise), declared on the
Common Stock since the immediately preceding Quarterly Dividend Payment Date, or, with respect to the first Quarterly Dividend
Payment Date, since the first issuance of any share or fraction of a share of Series D Participating Preferred Stock.

	The Corporation shall declare a dividend or distribution on the Series D Participating Preferred Stock as
provided in paragraph (a) above immediately after it declares a dividend or distribution on the Common Stock (other than a
dividend payable in shares of Common Stock).

	Dividends shall begin to accrue on outstanding shares of Series D Participating Preferred Stock from the
Quarterly Dividend Payment Date first following the date of issue of such shares of Series D Participating Preferred Stock, unless the
date of issue of such shares is prior to the record date for the first Quarterly Dividend Payment Date, in which case dividends on such
shares shall begin to accrue from the date of issue of such shares, or unless the date of issue is a Quarterly Dividend Payment Date or
is a date after the record date for the determination of holders of shares of Series D Participating Preferred Stock entitled to receive a
quarterly dividend and before such Quarterly Dividend Payment Date, in either of which events such dividends shall begin to accrue
from such Quarterly Dividend Payment Date.  Accrued but unpaid dividends shall not bear interest.  Dividends paid on the shares of
Series D Participating Preferred Stock in an amount less than the total amount of such dividends at the time accrued and payable on
such shares shall be allocated pro rata on a share-by-share basis among all such shares at the time outstanding.  The Board of
Directors may fix a record date for the determination of holders of shares of Series D Participating Preferred Stock entitled to receive
payment of a dividend or distribution declared thereon, which record date shall be no more than 30 days prior to the date fixed for the
payment thereof.

Section 4.   Voting Rights.  The holders of shares of Series D Participating
Preferred Stock shall have the following voting rights:

	Each share of Series D Participating Preferred Stock shall entitle the holder thereof to 1,000 votes on all
matters submitted to a vote of the stockholders of the Corporation.

	Except as otherwise provided herein or by law, the holders of shares of Series D Participating Preferred
Stock and the holders of shares of Common Stock shall vote together as one class on all matters submitted to a vote of stockholders of
the Corporation.

	Except as required by law, the holders of Series D Participating Preferred Stock shall have no special
voting rights and their consent shall not be required (except to the extent that they are entitled to vote with holders of Common Stock as
set forth herein) for taking any corporate action.

 - 2 -

Section 5.   Certain Restrictions.

	The Corporation shall not declare any dividend on, make any distribution on, or redeem or purchase or
otherwise acquire for consideration any shares of Common Stock after the first issuance of a share or fraction of a share of Series D
Participating Preferred Stock unless concurrently therewith it shall declare a dividend on the Series D Participating Preferred Stock as
required by Section 3 hereof.

	Whenever quarterly dividends or other dividends or distributions payable on the Series D Participating
Preferred Stock as provided in Section 3 are in arrears, thereafter and until all accrued and unpaid dividends and distributions,
whether or not declared, on shares of Series D Participating Preferred Stock outstanding shall have been paid in full, the Corporation
shall not

	declare or pay dividends on, make any other distributions on, or redeem or purchase or otherwise acquire
for consideration any shares of stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series D
Participating Preferred Stock;

	declare or pay dividends on, or make any other distributions on any shares of stock ranking on a parity
(either as to dividends or upon liquidation, dissolution or winding up) with the Series D Participating Preferred Stock, except dividends
paid ratably on the Series D Participating Preferred Stock and all such parity stock on which dividends are payable or in arrears in
proportion to the total amounts to which the holders of all such shares are then entitled;

	redeem or purchase or otherwise acquire for consideration shares of any stock ranking on a parity (either
as to dividends or upon liquidation, dissolution or winding up) with the Series D Participating Preferred Stock, provided that the
Corporation may at any time redeem, purchase or otherwise acquire shares of any such parity stock in exchange for shares of any
stock of the Corporation ranking junior (either as to dividends or upon dissolution, liquidation or winding up) to the Series D Participating
Preferred Stock;

	purchase or otherwise acquire for consideration any shares of Series D Participating Preferred Stock, or
any shares of stock ranking on a parity with the Series D Participating Preferred Stock, except in accordance with a purchase offer
made in writing or by publication (as determined by the Board of Directors) to all holders of such shares upon such terms as the Board
of Directors, after consideration of the respective annual dividend rates and other relative rights and preferences of the respective
Series and classes, shall determine in good faith will result in fair and equitable treatment among the respective series or
classes.

	The Corporation shall not permit any subsidiary of the Corporation to purchase or otherwise acquire for
consideration any shares of stock of the Corporation unless the Corporation could, under paragraph (a) of this Section 5,
purchase or otherwise acquire such shares at such time and in such manner.

 - 3 -

Section 6.   Reacquired Shares.  Any shares of Series D Participating
Preferred Stock purchased or otherwise acquired by the Corporation in any manner whatsoever shall be retired and canceled promptly
after the acquisition thereof.  All such shares shall upon their cancellation become authorized but unissued shares of Preferred Stock
and may be reissued as part of a new series of Preferred Stock to be created by resolution or resolutions of the Board of Directors,
subject to the conditions and restrictions on issuance set forth herein and in the Amended and Restated Certificate of Incorporation, as
then amended.

Section 7.   Liquidation, Dissolution or Winding Up.  Upon any liquidation,
dissolution or winding up of the Corporation, the holders of shares of Series D Participating Preferred Stock shall be entitled to receive
an aggregate amount per share equal to 1,000 times the aggregate amount to be distributed per share to holders of shares of Common
Stock plus an amount equal to any accrued and unpaid dividends on such shares of Series D Participating Preferred Stock.

Section 8.   Consolidation, Merger, etc.  In case the Corporation shall enter
into any consolidation, merger, combination or other transaction in which the shares of Common Stock are exchanged for or changed
into other stock or securities, cash and/or any other property, then in any such case the shares of Series D Participating Preferred
Stock shall at the same time be similarly exchanged or changed in an amount per share equal to 1,000 times the aggregate amount of
stock, securities, cash and/or any other property (payable in kind), as the case may be, into which or for which each share of Common
Stock is changed or exchanged.

Section 9.   No Redemption.  The shares of Series D Participating
Preferred Stock shall not be redeemable.

Section 10.   Ranking.  The Series D Participating Preferred Stock shall
rank junior to all other series of the Corporation's Preferred Stock as to the payment of dividends and the distribution of assets, unless
the terms of any such series shall provide otherwise.

Section 11.   Amendment.  The Amended and Restated Certificate of
Incorporation of the Corporation shall not be further amended in any manner which would materially alter or change the powers,
preference or special rights of the Series D Participating Preferred Stock so as to affect them adversely without the affirmative vote of
the holders of a majority of the outstanding shares of Series D Participating Preferred Stock, voting separately as a series.

Section 12.   Fractional Shares.  Series D Participating Preferred Stock may
be issued in fractions of a share which shall entitle the holder, in proportion to such holder's fractional shares, to exercise voting rights,
receive dividends, participate in distributions and to have the benefit of all other rights of holders of Series D Participating Preferred
Stock.

 - 4 -

RESOLVED FURTHER, that the President, Chief Executive Officer or any Vice President and the Secretary or
any Assistant Secretary of this corporation be, and they hereby are, authorized and directed to prepare and file a Certificate of
Designation of Rights, Preferences and Privileges in accordance with the foregoing resolution and the provisions of Delaware law and
to take such actions as they may deem necessary or appropriate to carry out the intent of the foregoing resolution."

I further declare under penalty of perjury that the matters set forth in the foregoing Certificate of Designation are
true and correct of my own knowledge.

Executed at Orinda, California, on September ___, 2005.
_______________________________________

    Peter Jackson

  President and Chief Executive Officer

 - 5 -

EXHIBIT B

FORM OF RIGHTS CERTIFICATE
 

	
Certificate No. R- __________
	
Rights       

NOT EXERCISABLE AFTER THE EARLIER OF (i) SEPTEMBER 23, 2015, (ii) THE DATE
TERMINATED BY THE COMPANY OR (iii) THE DATE THE COMPANY EXCHANGES THE RIGHTS PURSUANT TO THE
RIGHTS AGREEMENT.  THE RIGHTS ARE SUBJECT TO REDEMPTION, AT THE OPTION OF THE COMPANY, AT $0.001 PER
RIGHT ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT.  UNDER CERTAIN CIRCUMSTANCES, RIGHTS
BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON (AS
SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT) AND ANY SUBSEQUENT HOLDER OF SUCH RIGHTS MAY
BECOME NULL AND VOID.  [THE RIGHTS REPRESENTED BY THIS RIGHTS CERTIFICATE ARE OR WERE BENEFICIALLY
OWNED BY A PERSON WHO WAS OR BECAME AN ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE OF AN
ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT).  ACCORDINGLY, THIS RIGHTS
CERTIFICATE AND THE RIGHTS REPRESENTED HEREBY MAY BECOME NULL AND VOID IN THE CIRCUMSTANCES
SPECIFIED IN SECTION 7(e) OF SUCH RIGHTS AGREEMENT.]*

RIGHTS CERTIFICATE

INTRAWARE, INC.
 

This certifies that ______________________________, or registered assigns, is the registered owner of
the number of Rights set forth above, each of which entitles the owner thereof, subject to the terms, provisions and conditions of the
Amended and Restated Preferred Stock Rights Agreement dated as of June 22, 2006 (the "Rights Agreement"),
between Intraware, Inc., a Delaware corporation (the  "Company"), and Computershare Investor Services LLC (the
"Rights Agent"), to purchase from the Company at any time after the Distribution Date (as such term is defined in
the Rights Agreement) and prior to 5:00 P.M., New York time, on September 23, 2015 at the office of the Rights Agent
designated for such purpose, or at the office of its successor as Rights

____________________

 *   The portion of the legend in bracket shall be inserted only if applicable and shall replace the preceding sentence.

Agent, one one-thousandth (0.001) of a fully paid and
non-assessable share of Series D Participating Preferred Stock, par value $0.0001 per share (the  "Preferred Shares"),
of the Company, at an Exercise Price of $3.00 per one-thousandth (0.001) of a Preferred Share (the  "Exercise
Price"), upon presentation and surrender of this Rights Certificate with the Form of Election to Purchase and related
Certificate duly executed.  The number of Rights evidenced by this Rights Certificate (and the number of one-thousandths (0.001) of a
Preferred Share which may be purchased upon exercise hereof) set forth above are the number and Exercise Price as of September
23, 2005 based on the Preferred Shares as constituted at such date.  As provided in the Rights Agreement, the Exercise Price and the
number and kind of Preferred Shares or other securities which may be purchased upon the exercise of the Rights evidenced by this
Rights Certificate are subject to modification and adjustment upon the happening of certain events.

This Rights Certificate is subject to all of the terms, provisions and conditions of the Rights Agreement, which
terms, provisions and conditions are hereby incorporated herein by reference and made a part hereof and to which Rights Agreement
reference is hereby made for a full description of the rights, limitations of rights, obligations, duties and immunities hereunder of the
Rights Agent, the Company and the holders of the Rights Certificates, which limitations of rights include the temporary suspension of
the exercisability of such Rights under the specific circumstances set forth in the Rights Agreement.  Copies of the Rights Agreement
are on file at the principal executive offices of the Company and the above-mentioned office of the Rights Agent.

Subject to the provisions of the Rights Agreement, the Rights evidenced by this Rights Certificate (i) may
be redeemed by the Company, at its option, at a redemption price of $0.001 per Right or (ii) may be exchanged by the Company
in whole or in part for Common Shares, substantially equivalent rights or other consideration as determined by the Company.

This Rights Certificate, with or without other Rights Certificates, upon surrender at the office of the Rights Agent
designated for such purpose, may be exchanged for another Rights Certificate or Rights Certificates of like tenor and date evidencing
Rights entitling the holder to purchase a like aggregate amount of securities as the Rights evidenced by the Rights Certificate or Rights
Certificates surrendered shall have entitled such holder to purchase.  If this Rights Certificate shall be exercised in part, the holder shall
be entitled to receive upon surrender hereof another Rights Certificate or Rights Certificates for the number of whole Rights not
exercised.

No fractional portion of less than one one-thousandth (0.001) of a Preferred Share will be issued upon the
exercise of any Right or Rights evidenced hereby but in lieu thereof a cash payment will be made, as provided in the Rights
Agreement.

No holder of this Rights Certificate, as such, shall be entitled to vote or receive dividends or be deemed for any
purpose the holder of the Preferred Shares or of any other securities of the Company which may at any time be issuable on the
exercise hereof, nor shall anything contained in the Rights Agreement or herein be construed to confer upon the holder hereof, as such,
any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to
stockholders at any meeting thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other
actions affecting stockholders (except as

 - 2 -

provided in the Rights Agreement), or to receive dividends or subscription rights, or otherwise,
until the Right or Rights evidenced by this Rights Certificate shall have been exercised as provided in the Rights Agreement.

This Rights Certificate shall not be valid or obligatory for any purpose until it shall have been countersigned by
the Rights Agent.

WITNESS the facsimile signature of the proper officers of the Company and its corporate seal.  Dated as of
_______________, _____.

	
ATTEST:

______________________________

Secretary

	
INTRAWARE, INC.

By: ____________________________

Its: _____________________________

Countersigned:

COMPUTERSHARE INVESTOR SERVICES LLC

                   as Rights Agent

By: _____________________________

Its: ____________________________

 - 3 -

Form of Reverse Side of Rights Certificate

FORM OF ASSIGNMENT

(To be executed by the registered holder if such

holder desires to transfer the Rights Certificate)

FOR VALUE RECEIVED _______________ hereby sells, assigns and transfers unto 

(Please print name and address of transferee)

this Rights Certificate, together with all right, title and interest therein, and does hereby irrevocably
constitute and appoint __________________________ Attorney, to transfer the within Rights Certificate on the books of the within-
named Company, with full power of substitution.

Dated: _______________, ____
__________________________________

 Signature

Signature Guaranteed:

Signatures must be guaranteed by an "Eligible Guarantor Institution" (with membership in an
approved signature guarantee medallion program) pursuant to Rule 17Ad-15 of the Securities Exchange Act of 1934, as
amended.

CERTIFICATE

The undersigned hereby certifies by checking the appropriate boxes that:

(1)this Rights Certificate [ ] is [ ] is not being sold, assigned and transferred by or on behalf of
a Person who is or was an Acquiring Person, or an Affiliate or Associate of any such Person (as such terms are defined in the Rights
Agreement);

(2)after due inquiry and to the best knowledge of the undersigned, it [ ] did [ ] did not acquire
the Rights evidenced by this Rights Certificate from any Person who is, was or subsequently became an Acquiring Person or an
Affiliate or Associate of any such Person.

Dated: _______________, ____
__________________________________

 Signature

Signature Guaranteed:

Signatures must be guaranteed by an "Eligible Guarantor Institution" (with membership in an
approved signature guarantee medallion program) pursuant to Rule 17Ad-15 of the Securities Exchange Act of 1934, as
amended.

Form of Reverse Side of Rights Certificate -- continued

FORM OF ELECTION TO PURCHASE

(To be executed if holder desires to

exercise the Rights Certificate)

To:___________________________

The undersigned hereby irrevocably elects to exercise _________________________ Rights represented by
this Rights Certificate to purchase the number of one-thousandths (0.001) of a Preferred Share issuable upon the exercise of such
Rights and requests that certificates for such number of one-thousandths (0.001) of a Preferred Share issued in the name of:

Please insert social security

                   or other identifying number

(Please print name and address)

If such number of Rights shall not be all the Rights evidenced by this Rights Certificate, a new Rights
Certificate for the balance remaining of such Rights shall be registered in the name of and delivered to:

Please insert social security

                   or other identifying number

(Please print name and address)

Dated: _______________, ____
__________________________________

 Signature

Signature Guaranteed:

Signatures must be guaranteed by an "Eligible Guarantor Institution" (with membership in an
approved signature guarantee medallion program) pursuant to Rule 17Ad-15 of the Securities Exchange Act of 1934, as
amended.

CERTIFICATE

The undersigned hereby certifies by checking the appropriate boxes that:

(1)the Rights evidenced by this Rights Certificate [ ] are [ ] are not being exercised by or on
behalf of a Person who is or was an Acquiring Person or an Affiliate or Associate of any such Person (as such terms are defined in the
Rights Agreement);

(2)after due inquiry and to the best knowledge of the undersigned, it [ ] did [ ] did not acquire
the Rights evidenced by this Rights Certificate from any Person who is, was or subsequently became an Acquiring Person or an
Affiliate or Associate of any such Person.

Dated: _______________, ____
__________________________________

 Signature

Signature Guaranteed:

Signatures must be guaranteed by an "Eligible Guarantor Institution" (with membership in an
approved signature guarantee medallion program) pursuant to Rule 17Ad-15 of the Securities Exchange Act of 1934, as
amended.

Form of Reverse Side of Rights Certificate -- continued

NOTICE

The signature in the Form of Assignment or Form of Election to Purchase, as the case may be, must conform to the name as
written upon the face of this Rights Certificate in every particular, without alteration or enlargement or any change
whatsoever.

In the event the certification set forth above in the Form of Assigment or the Form of Election to Purchase, as the case may
be, is not completed and signed, the Company and the Rights Agent may deem the beneficial owner of the Rights evidenced by
this Rights Certificate to be an Acquiring Person or an Affiliate or Associate thereof (as defined in the Rights Agreement) and such
Assignment or Election to Purchase will not be honored.

EXHIBIT C

STOCKHOLDER RIGHTS PLAN

INTRAWARE, INC. 

Summary of Rights

	
Distribution and Transfer of Rights; Rights Certificate:
	
The Board of Directors has declared a dividend of one Right for each share of Common Stock of Intraware, Inc.
(the "Company") outstanding. Prior to the Distribution Date referred to below, the Rights will be evidenced by
and trade with the certificates for the Common Stock. After the Distribution Date, the Company will mail Rights certificates to the
Company's stockholders and the Rights will become transferable apart from the Common Stock.

	
Distribution Date:
	
Rights will separate from the Common Stock and become exercisable following (a) the tenth day (or such
later date as may be determined by the Company's Board of Directors) after a Person or group acquires beneficial ownership of 15% or
more of the Company's Common Stock (or, 20% or more of the Company's Common Stock in the case of (i) Crosslink Capital, Inc.
("Crosslink") and certain other Persons affiliated with Crosslink, and (ii) Special Situations Technology Fund,
L.P. (Tech) and Special Situations Technology II, L.P. (Tech II), ("Special Situations Technology Funds") and certain persons
affiliated with Special Situations Funds, or (b) the tenth business day (or such later date as may be determined by the Company's
Board of Directors) after a Person or group announces a tender or exchange offer, the consummation of which would result in
ownership by a Person or group of 15% or more of the Company's Common Stock (or 20% or more of the Company's Common Stock
in the case of Crosslink and its affiliates, and Special Situations Technology Funds and their affiliates).

	
Preferred Stock Purchasable Upon Exercise of Rights:
	
After the Distribution Date, each Right will entitle the holder to purchase for $3.00 (the "Exercise Price"),
one thousandth (0.001) of a share of the Company's Preferred Stock with economic terms similar to that of one share of the Company's
Common Stock.

	
Flip-In:
	
If an acquirer (an "Acquiring Person") obtains 15% or more of the Company's Common Stock (or, 20% or
more of the Company's Common Stock in the case of Crosslink and its affiliates, and Special Situations Technology Funds and their
affiliates) then each Right (other than Rights owned by an Acquiring Person or its affiliates) will entitle the holder thereof to
purchase, for the Exercise Price, a number of shares of the Company's Common Stock having a then-current market value of twice the
Exercise Price.

	
Flip-Over:
	
If, after an Acquiring Person obtains 15% or more of the Company's Common Stock (or, 20% or more of the
Company's Common Stock in the case of Crosslink and its affiliates, and Special Situations Technology Funds and their affiliates),
(a) the Company merges into another entity, (b) an acquiring entity merges into the Company or (c) the Company
sells more than 50% of the Company's assets or earning power, then each Right (other than Rights owned by an Acquiring
Person or its affiliates) will entitle the holder thereof to purchase, for the Exercise Price, a number of shares of Common Stock of the
Person engaging in the transaction having a then current market value of twice the Exercise Price.

	
Exchange Provision:
	
At any time after the date on which an Acquiring Person obtains 15% or more of the Company's Common Stock
(or, 20% or more of the Company's Common Stock in the case of Crosslink and its affiliates, and Special Situations Technology Funds
and their affiliates), and prior to the acquisition by the Acquiring Person of 50% of the outstanding Common Stock, the Board of
Directors of the Company may exchange the Rights (other than Rights owned by the Acquiring Person or its affiliates), in whole or in
part, for shares of Common Stock of the Company at an exchange ratio of one share of Common Stock per Right (subject to
adjustment).

	
Redemption of the Rights:
	
Rights will be redeemable at the Company's option for $0.001 per Right at any time on or prior to the fifth day (or
such later date as may be determined by the Company's Board of Directors) after public announcement that a Person has acquired
beneficial ownership of 15% or more of the Company's Common Stock (or, 20% or more of the Company's Common Stock in the case
of Crosslink and its affiliates, and Special Situations Technology Funds and their affiliates), (the "Shares Acquisition
Date").

 - 2 -

	
Expiration of the Rights:
	
The Rights expire on the earliest of (a) September 23, 2015 or (b) exchange or redemption of the
Rights as described above.

	
Amendment of Terms of Rights:
	
The terms of the Rights and the Rights Agreement may be amended in any respect without the consent of the
Rights holders on or prior to the Distribution Date; thereafter, the terms of the Rights and the Rights Agreement may be amended
without the consent of the Rights holders in order to cure any ambiguities or to make changes which do not adversely affect the
interests of Rights holders (other than the Acquiring Person).

	
Voting Rights:
	
Rights will not have any voting rights.

	
Anti-Dilution Provisions:
	
Rights will have the benefit of certain customary anti-dilution provisions.

	
Taxes:
	
The Rights distribution should not be taxable for federal income tax purposes. However, following an event which
renders the Rights exercisable or upon redemption of the Rights, stockholders may recognize taxable income.

The foregoing is a summary of certain principal terms of the Stockholder Rights Plan only and is qualified in its
entirety by reference to the Second Amended and Restated Preferred Stock Rights Agreement dated as of January 22, 2007 between
the Company and Computershare Investor Services LLC, as Rights Agent (the "Rights Agreement"). The Rights Agreement
may be amended from time to time. A copy of the Rights Agreement was filed with the Securities and Exchange Commission as an
Exhibit to a Registration Statement on Form 8-A/A dated January 23, 2007. A copy of the Rights Agreement is available free of charge
from the Company.

 - 3 -

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