exv10w66



 






Exhibit 10.66




FORM OF




VERITAS SOFTWARE CORPORATION




STOCK OPTION AGREEMENT




RECITALS




     A.      The Board has adopted the Plan for the purpose of retaining the services of selected
Employees and consultants and other independent advisors who provide services to the Corporation
(or any Parent or Subsidiary).



     B.      Optionee is to render valuable services to the Corporation (or a Parent or Subsidiary), and
this Agreement is executed pursuant to, and is intended to carry out the purposes of, the Plan in
connection with the Corporation’s grant of an option to Optionee.



     C.      All capitalized terms in this Agreement shall have the meaning assigned to them in the
attached Appendix.



              NOW, THEREFORE, it is hereby agreed as follows:



              1.      Grant of Option. The Corporation hereby grants to Optionee, as of the Grant Date,
an option to purchase up to the number of Option Shares specified in the Grant Notice. The Option
Shares shall be purchasable from time to time during the option term specified in Paragraph 2 at
the Exercise Price.



              2.      Option Term. This option shall have a maximum term of ten (10) years measured from
the Grant Date and shall accordingly expire at the close of business on the Expiration Date, unless
sooner terminated in accordance with Paragraph 5 or 6.



              3.      Limited Transferability.



                      (a)      This option shall be neither transferable nor assignable by Optionee other than by will or
the laws of inheritance following Optionee’s death and may be exercised, during Optionee’s
lifetime, only by Optionee. However, Optionee may designate one or more persons as the
beneficiary or beneficiaries of this option, and this option shall, in accordance with such
designation, automatically be transferred to such beneficiary or beneficiaries upon the Optionee’s
death while holding this option. Such beneficiary or beneficiaries shall take the transferred
option subject to all the terms and conditions of this Agreement, including (without limitation)
the limited time period during which this option may, pursuant to Paragraph 5, be exercised
following Optionee’s death.



                      (b)      If this option is designated a Non-Statutory Option in the Grant Notice, then this option
may, subject to the consent of the Plan Administrator, be assigned in



 









 




whole or in part during Optionee’s lifetime to one or more members of Optionee’s family or to
a trust established for the exclusive benefit of one or more such family members or to Optionee’s
former spouse, to the extent such assignment is in connection with the Optionee’s estate plan or
pursuant to a domestic relations order. The assigned portion shall be exercisable only by the
person or persons who acquire a proprietary interest in the option pursuant to such assignment.
The terms applicable to the assigned portion shall be the same as those in effect for this option
immediately prior to such assignment.




              4.      Dates of Exercise. This option shall become exercisable for the Option Shares in
one or more installments as specified in the Grant Notice. As the option becomes exercisable for
such installments, those installments shall accumulate, and the option shall remain exercisable for
the accumulated installments until the Expiration Date or sooner termination of the option term
under Paragraph 5 or 6.



              5.      Cessation of Service. The option term specified in Paragraph 2 shall terminate
(and this option shall cease to be outstanding) prior to the Expiration Date should any of the
following provisions become applicable:



                      (a)      Should Optionee cease to remain in Service for any reason (other than Misconduct) while
this option is outstanding, then Optionee (or any person or persons to whom this option is
transferred pursuant to a permitted transfer under Paragraph 3) shall have a period of twelve (12)
months (commencing with the date of such cessation of Service) during which to exercise this
option, but in no event shall this option be exercisable at any time after the Expiration Date.



                      (b)      Should Optionee die while this option is outstanding, then the personal representative of
Optionee’s estate or the person or persons to whom the option is transferred pursuant to Optionee’s
will or the laws of inheritance following Optionee’s death or to whom the option is transferred
during Optionee’s lifetime pursuant to a permitted transfer under Paragraph 3 shall have the right
to exercise this option. However, if Optionee dies while holding this option and has an effective
beneficiary designation in effect for this option at the time of his or her death, then the
designated beneficiary or beneficiaries shall have the exclusive right to exercise this option
following Optionee’s death. Any such right to exercise this option shall lapse, and this option
shall cease to be outstanding, upon the earlier of (i) the expiration of the twelve (12)
month period measured from the date of Optionee’s death or (ii) the Expiration Date.



                      (c)      Should Optionee cease Service by reason of Permanent Disability while this option is
outstanding, then Optionee (or any person or persons to whom this option is transferred pursuant to
a permitted transfer under Paragraph 3) shall have a period of twelve (12) months (commencing with
the date of such cessation of Service) during which to exercise this option. In no event shall
this option be exercisable at any time after the Expiration Date.



                      (d)      During the limited period of post-Service exercisability, this option may not be exercised
in the aggregate for more than the number of Option Shares for which such option is, at the time of
Optionee’s cessation of Service, exercisable pursuant to the Exercise



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Schedule specified in the Grant Notice or the special vesting acceleration provisions of
Paragraph 6. This option shall not vest or become exercisable for any additional Option Shares,
whether pursuant to the normal Exercise Schedule specified in the Grant Notice or the special
vesting acceleration provisions of Paragraph 6, following the Optionee’s cessation of Service,
except to the extent (if any) specifically authorized by the Plan Administrator pursuant to an
express written agreement with the Optionee prior to such cessation of Service. In the absence of
such written agreement, the option shall, immediately upon the Optionee’s cessation of Service,
terminate and cease to be outstanding with respect to any Option Shares for which the option is not
otherwise at that time vested and exercisable. Upon the expiration of the limited exercise period
provided under this Paragraph 5(d) or (if earlier) upon the Expiration Date, this option shall
terminate and cease to be outstanding for any otherwise vested and exercisable Option Shares for
which the option has not been exercised.




                      (e)      Should Optionee’s Service be terminated for Misconduct or should Optionee otherwise engage
in any Misconduct while this option is outstanding, then this option shall terminate immediately
and cease to remain outstanding.



              6.      Special Acceleration of Option.



                      (a)      This option, to the extent outstanding at the time of a Change in Control but not
otherwise fully exercisable, shall automatically accelerate so that this option shall, immediately
prior to the effective date of such Change in Control, vest and become exercisable for all of the
Option Shares at the time subject to this option and may be exercised for any or all of those
Option Shares as fully vested shares of Common Stock. However, this option shall not vest or
become exercisable on such an accelerated basis, if and to the extent: (i) this option is to be
assumed by the successor corporation (or parent thereof) or is otherwise to be continued in full
force and effect pursuant to the terms of the Change in Control transaction or (ii) this option is
to be replaced with a cash incentive program of the successor corporation which preserves the
spread existing at the time of the Change in Control on any Option Shares for which this option is
not otherwise at that time exercisable (the excess of the Fair Market Value of those Option Shares
over the aggregate Exercise Price payable for such shares) and provides for subsequent payout of
that spread in accordance with the same option exercise/vesting schedule for those Option Shares
set forth in the Grant Notice.



                      (b)      Immediately following the Change in Control, this option shall terminate and cease to be
outstanding, except to the extent assumed by the successor corporation (or parent thereof) or
otherwise continued in effect pursuant to the terms of the Change in Control transaction.



                      (c)      If this option is assumed in connection with a Change in Control or otherwise continued in
effect, then this option shall be appropriately adjusted, immediately after such Change in Control,
to apply to the number and class of securities which would have been issuable to Optionee in
consummation of such Change in Control had the option been exercised immediately prior to such
Change in Control, and appropriate adjustments shall also be made to the Exercise Price,
provided the aggregate Exercise Price shall remain the same. To the extent the actual
holders of the Corporation’s outstanding Common Stock receive cash consideration



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for their Common Stock in consummation of the Change in Control, the successor corporation
may, in connection with the assumption of this option, substitute one or more shares of its own
common stock with a fair market value equivalent to the cash consideration paid per share of Common
Stock in such Change in Control.




                      (d)      This Agreement shall not in any way affect the right of the Corporation to adjust,
reclassify, reorganize or otherwise change its capital or business structure or to merge,
consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets.



                      (e)      Except as provided in this Section 6 above, this option shall not accelerate pursuant to
the terms of any change-in-control agreement or employment agreement between the Corporation and
Optionee existing as of the date hereof as a result of the consummation of the proposed merger of
the Corporation and Symantec Corporation pursuant to that certain Agreement and Plan of
Reorganization dated December 15, 2004. The foregoing shall not affect in any manner the rights of
Optionee under any change-in-control or employment agreement between Optionee and Symantec
Corporation.



              7.      Adjustment in Option Shares. Should any change be made to the Common Stock by
reason of any stock split, stock dividend, recapitalization, combination of shares, exchange of
shares or other change affecting the outstanding Common Stock as a class without the Corporation’s
receipt of consideration, appropriate adjustments shall be made to (i) the total number and/or
class of securities subject to this option and (ii) the Exercise Price in order to reflect such
change and thereby preclude a dilution or enlargement of benefits hereunder.



              8.      Stockholder Rights. The holder of this option shall not have any stockholder
rights with respect to the Option Shares until such person shall have exercised the option, paid
the Exercise Price and become a holder of record of the purchased shares.



              9.      Manner of Exercising Option.



                      (a)      In order to exercise this option with respect to all or any part of the Option Shares for
which this option is at the time exercisable, Optionee (or any other person or persons exercising
the option) must take the following actions:



                                (i)      Execute and deliver to the Corporation a Notice of Exercise for the Option Shares
for which the option is exercised.



                                (ii)      Pay the aggregate Exercise Price for the purchased shares in one or more of the
following forms:



                                          (A)      cash or check made payable to the Corporation;



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                                          (B)      shares of Common Stock held by Optionee (or any other person or persons exercising
the option) for the requisite period necessary to avoid a charge to the Corporation’s
earnings for financial reporting purposes and valued at Fair Market Value on the Exercise
Date; or



                                          (C)      through a special sale and remittance procedure pursuant to which Optionee (or any
other person or persons exercising the option) shall concurrently provide irrevocable
instructions (i) to a brokerage firm (reasonably satisfactory to the Corporation for
purposes of administering such procedure in compliance with the Corporation’s
pre-notification/pre clearance policies) to effect the immediate sale of the purchased
shares and remit to the Corporation, out of the sale proceeds available on the settlement
date, sufficient funds to cover the aggregate Exercise Price payable for the purchased
shares plus all applicable income and employment taxes required to be withheld by the
Corporation by reason of such exercise and (ii) to the Corporation to deliver the
certificates for the purchased shares directly to such brokerage firm on such settlement
date in order to complete the sale.



                                          Except to the extent the sale and remittance procedure is utilized in connection with
the option exercise, payment of the Exercise Price must accompany the Notice of Exercise
delivered to the Corporation in connection with the option exercise.



                                (iii)      Furnish to the Corporation appropriate documentation that the person or persons
exercising the option (if other than Optionee) have the right to exercise this option.



                                (iv)      Make appropriate arrangements with the Corporation (or Parent or Subsidiary
employing or retaining Optionee) for the satisfaction of all applicable income and
employment tax withholding requirements applicable to the option exercise.



                      (b)      As soon as practical after the Exercise Date, the Corporation shall issue to or on behalf
of Optionee (or any other person or persons exercising this option) a certificate for the purchased
Option Shares, with the appropriate legends affixed thereto.



                      (c)      In no event may this option be exercised for any fractional shares.



              10.     Compliance with Laws and Regulations.



                      (a)      The exercise of this option and the issuance of the Option Shares upon such exercise shall
be subject to compliance by the Corporation and Optionee with all applicable requirements of law
relating thereto and with all applicable regulations of any stock exchange (or the Nasdaq National
Market, if applicable) on which the Common Stock may be listed for trading at the time of such
exercise and issuance.



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                      (b)      The inability of the Corporation to obtain approval from any regulatory body having
authority deemed by the Corporation to be necessary to the lawful issuance and sale of any Common
Stock pursuant to this option shall relieve the Corporation of any liability with respect to the
non-issuance or sale of the Common Stock as to which such approval shall not have been obtained.
The Corporation, however, shall use its best efforts to obtain all such approvals.



              11.      Successors and Assigns. Except to the extent otherwise provided in Paragraphs 3
and 6, the provisions of this Agreement shall inure to the benefit of, and be binding upon, the
Corporation and its successors and assigns and Optionee, Optionee’s assigns, the legal
representatives, heirs and legatees of Optionee’s estate and any beneficiaries of this option
designated by Optionee.



              12.      Notices. Any notice required to be given or delivered to the Corporation under
the terms of this Agreement shall be in writing and addressed to the Corporation at its principal
corporate offices. Any notice required to be given or delivered to Optionee shall be in writing
and addressed to Optionee at the address indicated below Optionee’s signature line on the Grant
Notice. All notices shall be deemed effective upon personal delivery or upon deposit in the U.S.
mail, postage prepaid and properly addressed to the party to be notified.



              13.      Construction. This Agreement and the option evidenced hereby are made and granted
pursuant to the Plan and are in all respects limited by and subject to the terms of the Plan. All
decisions of the Plan Administrator with respect to any question or issue arising under the Plan or
this Agreement shall be conclusive and binding on all persons having an interest in this option.



              14.      Governing Law. The interpretation, performance and enforcement of this Agreement
shall be governed by the laws of the State of California without resort to that State’s
conflict-of-laws rules.



              15.      Excess Shares. If the Option Shares covered by this Agreement exceed, as of the
Grant Date, the number of shares of Common Stock which may without stockholder approval be issued
under the Plan, then this option shall be void with respect to those excess shares, unless
stockholder approval of an amendment sufficiently increasing the number of shares of Common Stock
issuable under the Plan is obtained in accordance with the provisions of the Plan.



              16.      Additional Terms Applicable to an Incentive Option. In the event this option is
designated an Incentive Option in the Grant Notice, the following terms and conditions shall also
apply to the grant:



                      (a)      This option shall cease to qualify for favorable tax treatment as an Incentive Option if
(and to the extent) this option is exercised for one or more Option Shares: (A) more than three (3)
months after the date Optionee ceases to be an Employee for any reason other than death or
Permanent Disability or (B) more than twelve (12) months after the date Optionee ceases to be an
Employee by reason of Permanent Disability.



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                      (b)      No installment under this option shall qualify for favorable tax treatment as an Incentive
Option if (and to the extent) the aggregate Fair Market Value (determined at the Grant Date) of the
Common Stock for which such installment first becomes exercisable hereunder would, when added to
the aggregate value (determined as of the respective date or dates of grant) of the Common Stock or
other securities for which this option or any other Incentive Options granted to Optionee prior to
the Grant Date (whether under the Plan or any other option plan of the Corporation or any Parent or
Subsidiary) first become exercisable during the same calendar year, exceed One Hundred Thousand
Dollars ($100,000) in the aggregate. Should such One Hundred Thousand Dollar ($100,000) limitation
be exceeded in any calendar year, this option shall nevertheless become exercisable for the excess
shares in such calendar year as a Non-Statutory Option.



                      (c)      Should the exercisability of this option be accelerated upon a Change in Control, then
this option shall qualify for favorable tax treatment as an Incentive Option only to the extent the
aggregate Fair Market Value (determined at the Grant Date) of the Common Stock for which this
option first becomes exercisable in the calendar year in which the Change in Control transaction
occurs does not, when added to the aggregate value (determined as of the respective date or dates
of grant) of the Common Stock or other securities for which this option or one or more other
Incentive Options granted to Optionee prior to the Grant Date (whether under the Plan or any other
option plan of the Corporation or any Parent or Subsidiary) first become exercisable during the
same calendar year, exceed One Hundred Thousand Dollars ($100,000) in the aggregate. Should the
applicable One Hundred Thousand Dollar ($100,000) limitation be exceeded in the calendar year of
such Change in Control, the option may nevertheless be exercised for the excess shares in such
calendar year as a Non-Statutory Option.



                      (d)      Should Optionee hold, in addition to this option, one or more other options to purchase
Common Stock which become exercisable for the first time in the same calendar year as this option,
then the foregoing limitations on the exercisability of such options as Incentive Options shall be
applied on the basis of the order in which such options are granted.



              17.      Employment at Will. Nothing in this Agreement or in the Plan shall confer upon
Optionee any right to continue in Service for any period of specific duration or interfere with or
otherwise restrict in any way the rights of the Corporation (or any Parent or Subsidiary employing
or retaining Optionee) or of Optionee, which rights are hereby expressly reserved by each, to
terminate Optionee’s Service at any time for any reason, with or without cause.



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EXHIBIT I




NOTICE OF EXERCISE




          I hereby notify VERITAS Software Corporation (the “Corporation”) that I elect to purchase
___shares of the Corporation’s Common Stock (the “Purchased Shares”) at the option
exercise price of $       per share (the “Exercise Price”) pursuant to that certain option
(the “Option”) granted to me under the Corporation’s 2003 Stock Incentive Plan on
___, ___.



          Concurrently with the delivery of this Exercise Notice to the Corporation, I shall hereby pay
to the Corporation the Exercise Price for the Purchased Shares in accordance with the provisions of
my agreement with the Corporation (or other documents) evidencing the Option and shall deliver
whatever additional documents may be required by such agreement as a condition for exercise.
Alternatively, I may utilize the special broker-dealer sale and remittance procedure specified in
my agreement to effect payment of the Exercise Price.



                                        ,           

Date



	 	 	 	 	 
	 	 	 
	 	 	Optionee
	 
	 	 	 	 
	

	 	Address:	 	 
	

	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	Print name in exact manner it is to appear on the stock certificate:
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	Address to which certificate is to be sent, if different from address above:
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	Social Security Number:
	 	 	 	 
	 	 	 






 









 








APPENDIX




                    The following definitions shall be in effect under the Agreement:



                    A.      Agreement shall mean this Stock Option Agreement.



                    B.      Board shall mean the Corporation’s Board of Directors.



                    C.      Change in Control shall mean a change in ownership or control of the Corporation
effected through any of the following transactions:




                    (i)      a merger, consolidation or other reorganization approved by the
Corporation’s stockholders, unless securities representing more than fifty
percent (50%) of the total combined voting power of the voting securities of the
successor corporation are immediately thereafter beneficially owned, directly or
indirectly and in substantially the same proportion, by the persons who beneficially
owned the Corporation’s outstanding voting securities immediately prior to such
transaction, or




                    (ii)      a stockholder-approved sale, transfer or other disposition of all or
substantially all of the Corporation’s assets in complete liquidation or
dissolution of the Corporation, or




                    (iii)      any transaction or series of related transactions pursuant to which any
person or any group of persons comprising a “group” within the meaning of Rule
13d-5(b)(1) under the 1934 Act (other than the Corporation or a person that, prior
to such transaction or series of related transactions, directly or indirectly
controls, is controlled by or is under common control with, the Corporation) becomes
directly or indirectly the beneficial owner (within the meaning of Rule 13d-3 under
the 1934 Act) of securities possessing (or convertible into or exercisable for
securities possessing) more than fifty percent (50%) of the total combined voting
power of the Corporation’s securities outstanding immediately after the consummation
of such transaction or series of related transactions, whether such transaction
involves a direct issuance from the Corporation or the acquisition of outstanding
securities held by one or more of the Corporation’s stockholders.



                    D.      Code shall mean the Internal Revenue Code of 1986, as amended.



                    E.      Common Stock shall mean shares of the Corporation’s common stock.



                    F.      Corporation shall mean VERITAS Software Corporation, a Delaware corporation, and
any successor corporation to all or substantially all of the assets or voting stock of VERITAS
Software Corporation which shall by appropriate action adopt the Plan.



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                    G.      Employee shall mean an individual who is in the employ of the Corporation (or any
Parent or Subsidiary), subject to the control and direction of the employer entity as to both the
work to be performed and the manner and method of performance.



                    H.      Exercise Date shall mean the date on which the option shall have been exercised in
accordance with Paragraph 9 of the Agreement.



                    I.      Exercise Price shall mean the exercise price per Option Share as specified in the
Grant Notice.



                    J.      Exercise Schedule shall mean the schedule set forth in the Grant Notice pursuant to
which the option is to vest and become exercisable for the Option Shares in a series of
installments over the Optionee’s period of Service.



                    K.      Expiration Date shall mean the date on which the option expires as specified in the
Grant Notice.



                    L.      Fair Market Value per share of Common Stock on any relevant date shall be
determined in accordance with the following provisions:




                    (i)      If the Common Stock is at the time traded on the Nasdaq National Market,
then the Fair Market Value shall be deemed equal to the closing selling price per
share of Common Stock on the date in question, as the price is reported by the
National Association of Securities Dealers on the Nasdaq National Market and
published in The Wall Street Journal. If there is no closing selling price for the
Common Stock on the date in question, then the Fair Market Value shall be the
closing selling price on the last preceding date for which such quotation exists, or




                    (ii)      If the Common Stock is at the time listed on any Stock Exchange, then the
Fair Market Value shall be deemed equal to the closing selling price per share of
Common Stock on the date in question on the Stock Exchange determined by the Plan
Administrator to be the primary market for the Common Stock, as such price is
officially quoted in the composite tape of transactions on such exchange and
published in The Wall Street Journal. If there is no closing selling price for the
Common Stock on the date in question, then the Fair Market Value shall be the
closing selling price on the last preceding date for which such quotation exists.



                    M.      Grant Date shall mean the date of grant of the option as specified in the Grant
Notice.



                    N.      Grant Notice shall mean the Notice of Grant of Stock Option accompanying the
Agreement, pursuant to which Optionee has been informed of the basic terms of the option evidenced
hereby.



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                    O.      Incentive Option shall mean an option which satisfies the requirements of Code
Section 422.



                    P.      Misconduct shall mean the commission of any act of fraud, embezzlement or
dishonesty by Optionee, any unauthorized use or disclosure by Optionee of confidential information
or trade secrets of the Corporation (or any Parent or Subsidiary), or any other intentional
misconduct by Optionee adversely affecting the business or affairs of the Corporation (or any
Parent or Subsidiary) in a material manner. The foregoing definition shall not in any way preclude
or restrict the right of the Corporation (or any Parent or Subsidiary) to discharge or dismiss
Optionee or any other person in the Service of the Corporation (or any Parent or Subsidiary) for
any other acts or omissions, but such other acts or omissions shall not be deemed, for purposes of
the Plan or this Agreement, to constitute grounds for termination for Misconduct.



                    Q.      Non-Statutory Option shall mean an option not intended to satisfy the requirements
of Code Section 422.



                    R.      Notice of Exercise shall mean the notice of exercise in the form attached hereto as
Exhibit I.



                    S.      Option Shares shall mean the number of shares of Common Stock subject to the option
as specified in the Grant Notice.



                    T.      Optionee shall mean the person to whom the option is granted as specified in the
Grant Notice.



                    U.      Parent shall mean any corporation (other than the Corporation) in an unbroken chain
of corporations ending with the Corporation, provided each corporation in the unbroken chain (other
than the Corporation) owns, at the time of the determination, stock possessing fifty percent (50%)
or more of the total combined voting power of all classes of stock in one of the other corporations
in such chain.



                    V.      Permanent Disability shall mean the inability of Optionee to engage in any
substantial gainful activity by reason of any medically determinable physical or mental impairment
which is expected to result in death or has lasted or can be expected to last for a continuous
period of twelve (12) months or more.



                    W.      Plan shall mean the Corporation’s 2003 Stock Incentive Plan.



                    X.      Plan Administrator shall mean either the Board or a committee of the Board acting
in its capacity as administrator of the Plan.



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                    Y.      Service shall mean the Optionee’s performance of services for the Corporation (or any
Parent or Subsidiary) in the capacity of an Employee, a non-employee member of the board of
directors or a consultant or independent advisor. Service shall not be deemed to cease during a
period of military leave, sick leave or other personal leave approved by the Corporation;
provided, however, that for a leave which exceeds ninety (90) days, Service shall
be deemed, for purposes of determining the period within which this option may be exercised as an
Incentive Option (if designated as such in the Grant Notice), to cease on the ninety-first
(91st) day of such leave, unless the right of that Optionee to return to Service
following such leave is guaranteed by law or statute. Except to the extent otherwise required by
law or expressly authorized by the Plan Administrator, no Service credit shall be given for vesting
purposes for any period the Optionee is on a leave of absence.



                    Z.      Stock Exchange shall mean the American Stock Exchange or the New York Stock
Exchange.



                    AA.   Subsidiary shall mean any corporation (other than the Corporation) in an unbroken
chain of corporations beginning with the Corporation, provided each corporation (other than the
last corporation) in the unbroken chain owns, at the time of the determination, stock possessing
fifty percent (50%) or more of the total combined voting power of all classes of stock in one of
the other corporations in such chain.




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