Document:

exv10w46

 

Exhibit 10.46

SYBASE, INC.

1.75% Convertible Subordinated Notes due 2025

Registration Rights Agreement

February 22, 2005

LEHMAN BROTHERS INC.

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

c/o Lehman Brothers Inc.

155 Linfield Drive

Menlo Park, CA 94025

Ladies and Gentlemen:

     Sybase, Inc., a Delaware corporation (the “Company”), proposes to issue and sell to the
Purchasers (as defined herein) on the terms set forth in the Purchase Agreement (as defined herein)
its 1.75% Convertible Subordinated Notes due 2025 (the “Securities”). As an inducement to the
Purchasers to enter into the Purchase Agreement and in satisfaction of a condition to the
obligations of the Purchasers thereunder, the Company agrees with the Purchasers for the benefit of
themselves and the Holders (as defined herein) from time to time of the Registrable Securities (as
defined herein) as follows:

     1. Definitions.

     (a) Capitalized terms used herein without definition shall have the meanings ascribed to them
in the Purchase Agreement. As used in this Agreement, the following defined terms shall have the
following meanings:

     “Affiliate” of any specified person means any other person that, directly or indirectly, is in
control of, is controlled by, or is under common control with such specified person. For purposes
of this definition, control of a person means the power, direct or indirect, to direct or cause the
direction of the management and policies of such person whether by contract or otherwise; and the
terms “controlling” and “controlled” have meanings correlative to the foregoing.

     “Closing Date” means the First Delivery Date as defined in the Purchase Agreement.

 

 

     “Commission” means the United States Securities and Exchange Commission, or any other federal
agency at the time administering the Exchange Act or the Securities Act, whichever is the relevant
statute for the particular purpose.

     “Common Stock” means the Company’s common stock, par value $0.001 per share.

     “DTC” means The Depository Trust Company.

     “Effective Date” means the date the Shelf Registration Statement is declared effective.

     “Effective Failure” has the meaning assigned thereto in Section 6(b) hereof.

     “Effectiveness Period” has the meaning assigned thereto in Section 2(b)(i) hereof.

     “Effective Time” means the time at which the Commission declares the Shelf Registration
Statement effective or at which the Shelf Registration Statement otherwise becomes effective.

     “Electing Holder” has the meaning assigned thereto in Section 3(a)(ii) hereof.

     “Exchange Act” means the United States Securities Exchange Act of 1934, as amended.

     “Holder” means, any person that is the record owner of Registrable Securities (and includes
any person that has a beneficial interest in any Registrable Security in book-entry form).

     “Indenture” means the Indenture, dated as of February 22, 2005, between the Company and Wells
Fargo Bank Minnesota, National Association, as amended and supplemented from time to time in
accordance with its terms.

     “Liquidated Damages” has the meaning assigned thereto in Section 6(a) hereof.

     “Notice and Questionnaire” means a Notice of Registration Statement and Selling Securityholder
Questionnaire substantially in the form of Appendix A hereto.

     The term “person” means an individual, partnership, corporation, trust or unincorporated
organization, or a government or agency or political subdivision thereof.

     “Prospectus” means the prospectus (including, without limitation, any preliminary prospectus,
any final prospectus and any prospectus that discloses information previously omitted from a
prospectus filed as part of an effective registration statement in reliance upon Rule 430A under
the Securities Act) included in the Shelf Registration Statement, as amended or supplemented by any
prospectus supplement with respect to the terms of the offering of any portion of the Registrable
Securities covered by the Shelf Registration Statement and by all other amendments and supplements
to such prospectus, including all material incorporated by

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reference in such prospectus and all
documents filed after the date of such prospectus by the Company under the Exchange Act and
incorporated by reference therein.

     “Purchase Agreement” means the purchase agreement, dated as of February 15, 2005, between the
Purchasers and the Company relating to the Securities.

     “Purchasers” means the Initial Purchasers named in Schedule I of the Purchase Agreement.

     “Registrable Securities” means all or any portion of the Securities issued from time to time
under the Indenture in registered form and the shares of Common Stock issuable upon conversion,
repurchase or redemption of such Securities; provided, however, that a security ceases to be a
Registrable Security when it is no longer a Restricted Security.

     “Registration Default” has the meaning assigned thereto in Section 6(a) hereof.

     “Restricted Security” means any Security or share of Common Stock issuable upon conversion
thereof except any such Security or share of Common Stock that (i) has been effectively registered
under the Securities Act and sold in a manner contemplated by the Shelf Registration Statement,
(ii) has been transferred in compliance with Rule 144 under the Securities Act (or any successor
provision thereto) or is transferable pursuant to paragraph (k) of such Rule 144 (or any successor
provision thereto), or (iii) has otherwise been transferred and a new Security or share of Common
Stock not subject to transfer restrictions under the Securities Act has been delivered by or on
behalf of the Company in accordance with the Indenture.

     “Rules and Regulations” means the published rules and regulations of the Commission
promulgated under the Securities Act or the Exchange Act, as in effect at any relevant time.

     “Securities Act” means the United States Securities Act of 1933, as amended.

     “Shelf Registration” means a registration effected pursuant to Section 2 hereof.

     “Shelf Registration Statement” means a “shelf” registration statement filed under the
Securities Act providing for the registration of, and the sale on a continuous or delayed basis by
the Holders of, all of the Registrable Securities pursuant to Rule 415 under the Securities Act
and/or any similar rule that may be adopted by the Commission, filed by the Company pursuant to the
provisions of Section 2 of this Agreement, including the Prospectus contained therein, any
amendments and supplements to such registration statement, including post-effective amendments, and
all exhibits and all material incorporated by reference in such registration statement.

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     “Trust Indenture Act” means the Trust Indenture Act of 1939, or any successor thereto, and the
rules, regulations and forms promulgated thereunder, as the same shall be amended from time to
time.

     The term “underwriter” means any underwriter of Registrable Securities in connection with an
offering thereof under a Shelf Registration Statement.

     (b) Wherever there is a reference in this Agreement to a percentage of the “principal amount”
of Registrable Securities or to a percentage of Registrable Securities, Common Stock shall be
treated as representing the principal amount of Securities that were surrendered for conversion or
exchange in order to receive such number of shares of Common Stock.

     2. Shelf
Registration.

     (a) The Company shall use its reasonable efforts to file, no later than 90 calendar days
following the date of this Agreement with the Commission a Shelf Registration Statement relating to
the offer and sale of the Registrable Securities by the Holders from time to time in accordance
with the methods of distribution elected by such Holders and set forth in such Shelf Registration
Statement and, thereafter, shall use its reasonable efforts to cause such Shelf Registration
Statement to be declared effective under the Securities Act no later than 180 calendar days
following the date of this Agreement; provided, however, that the Company may, upon
written notice to all Holders, postpone having the Shelf Registration Statement declared effective
for a reasonable period not to exceed 60 days if the Company possesses material non-public
information, the disclosure of which would have a material adverse effect on the Company and its
subsidiaries taken as a whole; provided, further, however, that no Holder shall be entitled to be
named as a selling securityholder in the Shelf Registration Statement or to use the Prospectus
forming a part thereof for resales of Registrable Securities unless such Holder is an Electing
Holder.

     (b) The Company shall use its reasonable efforts:

     (i) to keep the Shelf Registration Statement continuously effective in
order to permit the Prospectus forming a part thereof to be usable by Holders from the
Effective Time until the earliest of (1) two years after the last date of issuance of
the Securities, (2) the sale pursuant to the Shelf Registration Statement of the
Securities and all of the shares of Common Stock issuable upon conversion of the
Securities, and (3) the date when the Holders of the Securities and the Common Stock
issuable upon conversion of the Securities are able to sell all such securities
immediately without restriction pursuant to Rule 144(k) under the Securities Act or any
successor rule thereto or otherwise (such period being referred to herein as the
“Effectiveness Period”); and

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     (ii) if at any time prior to or during the Effectiveness Period the Securities,
pursuant to Article 4 of the Indenture, are convertible into securities other than Common
Stock, to cause, or to cause any successor under the Indenture to cause, such securities to
be included in the Shelf Registration Statement no later than the date on which the
Securities may then be convertible into such other securities.

     (c) The Company may suspend the use of the Prospectus for no more than an aggregate of 45 days
in any three-month period and for no more than an aggregate of 90 days in any twelve-month period
if the Board of Directors of the Company, or the Chief Executive Officer or the Chief Financial
Officer of the Company, shall have determined in good faith that because of valid business reasons
(not including avoidance of the Company’s obligations hereunder),
including, without limitation, the acquisition or divestiture of assets, pending corporate
developments, public filings with the Commission and similar events, it is in the interest of the
Company to suspend such use, and prior to suspending such use the Company provides the Electing
Holders with written notice of such suspension, which notice need not specify the nature of the
event giving rise to such suspension.

     3. Registration Procedures. In connection with the Shelf Registration Statement, the
following provisions shall apply:

     (a) (i) Not less than 30 calendar days prior to the Effective Time of the Shelf Registration
Statement, the Company shall deliver the Notice and Questionnaire to the Holders of Registrable
Securities. No Holder shall be entitled to be named as a selling securityholder in the Shelf
Registration Statement as of the Effective Time, and no Holder shall be entitled to use the
Prospectus forming a part thereof for offers and resales of Registrable Securities at any time,
unless such Holder has returned a completed and signed Notice and Questionnaire to the Company by
the deadline for response set forth therein; provided, however, Holders of Registrable Securities
shall have at least 20 calendar days from the date on which the Notice and Questionnaire is first
delivered to such Holders to return a completed and signed Notice and Questionnaire to the Company.
Notwithstanding the foregoing, upon the request of any Holder of Registrable Securities that did
not return a Notice and Questionnaire on a timely basis or did not receive a Notice and
Questionnaire because it was a subsequent transferee of Registrable Securities after the Company
mailed the Notice and Questionnaire, (x) the Company shall distribute a Notice and Questionnaire to
such Holders at the address set forth in the request and (y) within 15 business days of such
request and upon receipt of a properly completed Notice and Questionnaire from such Holder, the
Company shall use its reasonable efforts to name such Holder as a selling securityholder in the
Shelf Registration Statement by means of amendments or, if permitted by the Commission, by means of
Prospectus supplements to the Shelf Registration Statement. Notwithstanding any of the foregoing,
(i) the Company will not be required to file more than one post-effective amendment to the Shelf
Registration Statement during any 90-day period, and (ii) the Company shall only be obligated to
file a post-effective amendment when the principal amount of the Registrable Securities to be
included in such post-

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effective amendment is at least $10 million. For purposes of the foregoing
sentence, the principal amount of any shares of Common Stock constituting Registrable Securities
shall be deemed to be that number of shares of Common Stock multiplied by a fraction, the numerator
of which is $1,000 and the denominator of which is the then-current conversion rate. The Company
will pay Liquidated Damages described below in Section 6(a) to a holder if the Company fails to
make a filing in the time required with respect to such Holder.

     (ii) The term “Electing Holder” shall mean any Holder of Registrable Securities that
has returned a completed and signed Notice and Questionnaire to the Company in accordance
with Section 3(a)(i) hereof.

     (b) The Company shall furnish to the Electing Holder, prior to the Effective Time, a copy of
the Shelf Registration Statement as initially filed with the Commission and, if such Electing
Holder so requests in writing, copies of each amendment thereto. Prior to the Effective Time, the
Company shall use its reasonable efforts to take into account and reflect in an amendment to the
Shelf Registration Statement any comments on the Shelf Registration Statement as initially filed
that the Electing Holders and their counsel reasonably may propose.

     (c) The Company shall as promptly as reasonably practicable take such action as may be
necessary so that (i) each of the Shelf Registration Statement and any amendment thereto and the
Prospectus forming a part thereof and any amendment or supplement thereto (and each report or other
document incorporated therein by reference in each case) complies as to form in all material
respects with the Securities Act and the Exchange Act and the applicable Rules and Regulations
thereunder, (ii) each of the Shelf Registration Statement and any amendment thereto does not, when
it becomes effective, contain an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein not misleading and
(iii) each of the Prospectus forming a part of the Shelf Registration Statement, and any amendment
or supplement to such Prospectus, does not at any time during the Effectiveness Period include an
untrue statement of a material fact or omit to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not misleading.

     (d) The Company shall as promptly as reasonably practicable advise each Holder, and shall
confirm such advice in writing if so requested by any such Holder:

     (i) when a Shelf Registration Statement and any amendment thereto has been filed with
the Commission and when a Shelf Registration Statement or any post-effective amendment
thereto has become effective;

     (ii) of any request by the Commission for amendments or supplements to the Shelf
Registration Statement or the Prospectus included therein or for additional information;

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     (iii) of the issuance by the Commission of any stop order suspending the effectiveness
of the Shelf Registration Statement or the initiation of any proceedings for such purpose;

     (iv) of the receipt by the Company of any notification with respect to the suspension
of the qualification of the securities included in the Shelf Registration Statement for sale
in any jurisdiction or the initiation of any proceeding for such purpose; and

     (v) of the happening of any event or the existence of any state of facts (but not as to
the substance of any such event or such state of facts) that requires the making of
any changes in the Shelf Registration Statement or the Prospectus included therein so that,
as of such date, such Shelf Registration Statement and Prospectus do not contain an untrue
statement of a material fact and do not omit to state a material fact required to be stated
therein or necessary to make the statements therein (in the case of the Prospectus, in light
of the circumstances under which they were made) not misleading (which advice shall be
accompanied by an instruction to such Electing Holders to suspend the use of the Prospectus
until the requisite changes have been made).

     (e) The Company shall use its reasonable efforts to prevent the issuance, and if issued to
obtain the withdrawal at the earliest possible time, of any order suspending the effectiveness of
the Shelf Registration Statement.

     (f) The Company shall furnish to each Electing Holder, without charge, at least one copy of
the Shelf Registration Statement, all post-effective amendments thereto, including financial
statements and schedules, and any Prospectus supplement in which such Electing Holder is named as a
selling securityholder, if such Electing Holder so requests in writing, all reports, other
documents and exhibits that are filed with or incorporated by reference in the Shelf Registration
Statement.

     (g) The Company shall, during the Effectiveness Period, deliver to each Electing Holder,
without charge, as many copies of the Prospectus (including each preliminary Prospectus) included
in the Shelf Registration Statement and any amendment or supplement thereto as such Electing Holder
may reasonably request; and the Company consents (except during the periods specified in Section
2(c) above or during the continuance of any event described in Section 3(d)(v) above) to the use of
the Prospectus and any amendment or supplement thereto by each of the Electing Holders in
connection with the offering and sale of the Registrable Securities covered by the Prospectus and
any amendment or supplement thereto during the Effectiveness Period.

     (h) Prior to any offering of Registrable Securities pursuant to the Shelf Registration
Statement, the Company shall (i) register or qualify or cooperate with the Electing Holders and
their respective counsel in connection with the registration or qualification of such Registrable

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Securities for offer and sale under the securities or “blue sky” laws of such jurisdictions within
the United States as any Electing Holder may reasonably request, (ii) keep such registrations or
qualifications in effect and comply with such laws so as to permit the continuance of offers and
sales in such jurisdictions for so long as may be necessary to enable any Electing Holder or
underwriter, if any, to complete its distribution of Registrable Securities pursuant to the Shelf
Registration Statement, and (iii) take any and all other actions necessary or advisable to enable
the disposition in such jurisdictions of such Registrable Securities; provided, however, that in
no event shall the Company be obligated to (A) qualify as a foreign corporation or as a dealer in
securities in any jurisdiction where it would not otherwise be required to so qualify but for this
Section 3(h) or (B) file any general consent to service of process in any jurisdiction where it is
not as of the date hereof so subject.

     (i) Unless any Registrable Securities shall be in book-entry only form, the Company shall
cooperate with the Electing Holders to facilitate the timely preparation and delivery of
certificates representing Registrable Securities to be sold pursuant to the Shelf Registration
Statement, which certificates, if so required by any securities exchange upon which any Registrable
Securities are listed, shall be penned, lithographed or engraved, or produced by any combination of
such methods, on steel engraved borders, and which certificates shall be free of any restrictive
legends and in such permitted denominations and registered in such names as Electing Holders may
request in connection with the sale of Registrable Securities pursuant to the Shelf Registration
Statement.

     (j) Upon the occurrence of any fact or event contemplated by paragraph 3(d)(v) above, the
Company shall as promptly as reasonably practicable prepare a post-effective amendment to any Shelf
Registration Statement or an amendment or supplement to the related Prospectus or file any other
required document so that, as thereafter delivered to purchasers of the Registrable Securities
included therein, the Prospectus will not include an untrue statement of a material fact or omit to
state any material fact necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading; provided, however, that the Company shall not be
required to file such amendment, supplement or document if the Board of Directors of the Company
(or the Chief Executive Officer or the Chief Financial Officer of the Company) has made a
determination pursuant to Section 2(c), for so long as the suspension pursuant to Section 2(c) is
continuing. If the Company notifies the Electing Holders of the occurrence of any fact or event
contemplated by paragraph 3(d)(v) above, the Electing Holder shall suspend the use of the
Prospectus until the requisite changes to the Prospectus have been made.

     (k) Not later than the Effective Time of the Shelf Registration Statement, the Company shall
obtain a CUSIP number for the Registrable Securities that are debt securities.

     (l) The Company shall use its reasonable efforts to comply with all applicable Rules and
Regulations, and to make generally available to its securityholders as soon as reasonably
practicable, but in any event not later than eighteen months after (i) the effective date (as
defined

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in
Rule 158(c) under the Securities Act) of the Shelf Registration Statement, (ii) the
effective date of each post-effective amendment to the Shelf Registration Statement, and (iii) the
date of each filing by the Company with the Commission of an Annual Report on Form 10-K that is
incorporated by reference in the Shelf Registration Statement, an earnings statement of the Company
and its subsidiaries complying with Section 11(a) of the Securities Act and the rules and
regulations of the Commission thereunder (including, at the option of the Company, Rule 158).

     (m) Not later than the Effective Time of the Shelf Registration Statement, the Company shall
cause the Indenture to be qualified under the Trust Indenture Act as soon as reasonably
practicable; in connection with such qualification, the Company shall cooperate with the Trustee
under the Indenture and the Holders (each as defined in the Indenture) to effect such changes to
the Indenture as may be required for such Indenture to be so qualified in accordance
with the terms of the Trust Indenture Act; and the Company shall execute, and shall use all
reasonable efforts to cause the Trustee to execute, all documents that may be required to effect
such changes and all other forms and documents required to be filed with the Commission to enable
such Indenture to be so qualified in a timely manner. In the event that any such amendment or
modification referred to in this Section 3(m) involves the appointment of a new trustee under the
Indenture, the Company shall appoint a new trustee thereunder pursuant to the applicable provisions
of the Indenture.

     (n) The Company will use its reasonable efforts to cause the Common Stock issuable upon
conversion of the Securities to be listed on the New York Stock Exchange or other stock exchange or
trading system on which the Common Stock primarily trades on or prior to the Effective Time of the
Shelf Registration Statement hereunder.

     4. Registration Expenses. Except as otherwise provided in Section 3, the Company shall bear
all fees and expenses incurred in connection with the performance of its obligations under Sections
2 and 3 hereof and shall bear or reimburse the Electing Holders for the reasonable fees and
disbursements of a single counsel selected by a plurality of all Electing Holders who own an
aggregate of not less than 25% of the Registrable Securities covered by the Shelf Registration
Statement to act as counsel therefore in connection therewith. Each Electing Holder shall pay all
underwriting discounts and commissions and transfer taxes, if any, relating to the sale or
disposition of such Electing Holder’s Registrable Securities pursuant to the Shelf Registration
Statement.

     5. Indemnification and Contribution.

     (a) Indemnification by the Company. Upon the registration of the Registrable Securities
pursuant to Section 2 hereof, the Company shall indemnify and hold harmless each Electing Holder
and each underwriter, selling agent or other securities professional, if any, which facilitates the
disposition of Registrable Securities, and each of their respective officers and directors and each
person who controls such Electing Holder, underwriter, selling agent or other securities
professional within the meaning of Section 15 of the Securities Act or Section 20 of the

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Exchange
Act (each such person being sometimes referred to as an “Indemnified Person”) against any losses,
claims, damages or liabilities, joint or several, to which such Indemnified Person may become
subject under the Securities Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon an untrue statement or
alleged untrue statement of a material fact contained in any Shelf Registration Statement under
which such Registrable Securities are to be registered under the Securities Act, or any Prospectus
contained therein or furnished by the Company to any Indemnified Person, or any amendment or
supplement thereto, or arise out of or are based upon the omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the statements therein
not misleading, and the Company hereby agrees to reimburse such Indemnified Person for any legal or
other expenses reasonably incurred by them in connection with investigating or defending any such
action or claim as such expenses are incurred; provided, however, that the Company
shall not be liable to any such Indemnified Person in any such case to the extent that any such
loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged
untrue statement or omission or alleged omission made in such Shelf Registration Statement or
Prospectus, or amendment or supplement, in reliance upon and in conformity with written information
furnished to the Company by such Indemnified Person or its agent or representative expressly for
use therein.

     (b) Indemnification by the Electing Holders and any Agents and Underwriters. Each Electing
Holder agrees, as a consequence of the inclusion of any of such Electing Holder’s Registrable
Securities in such Shelf Registration Statement, and each underwriter, selling agent or other
securities professional, if any, that facilitates the disposition of Registrable Securities shall
agree, as a consequence of facilitating such disposition of Registrable Securities, severally and
not jointly, to (i) indemnify and hold harmless the Company, its directors, officers who sign any
Shelf Registration Statement and each person, if any, who controls the Company within the meaning
of either Section 15 of the Securities Act or Section 20 of the Exchange Act, against any losses,
claims, damages or liabilities to which the Company or such other persons may become subject, under
the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions
in respect thereof) arise out of or are based upon an untrue statement or alleged untrue statement
of a material fact contained in such Shelf Registration Statement or Prospectus, or any amendment
or supplement, or arise out of or are based upon the omission or alleged omission to state therein
a material fact required to be stated therein or necessary to make the statements therein not
misleading, in each case to the extent, but only to the extent, that such untrue statement or
alleged untrue statement or omission or alleged omission was made in reliance upon and in
conformity with written information furnished to the Company by such Electing Holder, underwriter,
selling agent or other securities professional (or its agent or representative) expressly for use
therein, and (ii) reimburse the Company for any legal or other expenses reasonably incurred by the
Company in connection with investigating or defending any such action or claim as such expenses are
incurred.

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     (c) Notices of Claims. Promptly after receipt by an Indemnified Person under subsection (a)
or (b) above of notice of the commencement of any action, such Indemnified Person shall, if a claim
in respect thereof is to be made against an indemnifying party under this Section 5, notify such
indemnifying party in writing of the commencement thereof; but the omission so to notify the
indemnifying party shall not relieve it from any liability that it may have to any Indemnified
Person otherwise than under the indemnification provisions of or contemplated by subsection (a) or
(b) above; and further, that the failure to notify the indemnifying party shall not relieve it from
any liability that it may have under this Section 5 except to the extent it has been materially
prejudiced by such failure. In case any such action shall be brought against any Indemnified
Person and it shall notify an indemnifying party of the commencement thereof, such indemnifying
party shall be entitled to participate therein and, to the extent that it shall wish, jointly with
any other indemnifying party similarly notified, to assume the defense thereof, with counsel
reasonably satisfactory to such Indemnified Person (who shall not, except with the
consent of the Indemnified Person, be counsel to the indemnifying party), and, after notice from
the indemnifying party to such Indemnified Person of its election so to assume the defense thereof,
such indemnifying party shall not be liable to such Indemnified Person under this Section 5 for any
legal expenses of other counsel or any other expenses, in each case subsequently incurred by such
Indemnified Person, in connection with the defense thereof other than reasonable costs of
investigation; provided, however, that the Indemnified Persons shall have the right to employ
counsel to represent jointly the Indemnified Persons and their respective directors, officers,
employees and controlling persons who may be subject to liability arising out of any claim in
respect of which indemnity may be sought by the Indemnified Persons against the indemnifying party
under this Section 5 if, in the reasonable judgment of the Indemnified Persons, it is advisable for
the Indemnified and those directors, officers, employees and controlling persons to be jointly
represented by separate counsel, and in that event the fees and expenses of such separate counsel
shall be paid by the indemnifying parties. No indemnifying party shall, without the written consent
of the Indemnified Person, effect the settlement or compromise of, or consent to the entry of any
judgment with respect to, any pending or threatened action or claim in respect of which
indemnification or contribution may be sought hereunder (whether or not the Indemnified Person is
an actual or potential party to such action or claim) unless such settlement, compromise or
judgment (i) includes an unconditional release of the Indemnified Person from all liability arising
out of such action or claim and (ii) does not include a statement as to, or an admission of, fault,
culpability or a failure to act, by or on behalf of any Indemnified Person.

     (d) Contribution. If the indemnification provided for in this Section 5 is unavailable to or
insufficient to hold harmless an Indemnified Person under subsection (a) or (b) above in respect of
any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein,
then each indemnifying party shall contribute to the amount paid or payable by such Indemnified
Person as a result of such losses, claims, damages or liabilities (or actions in respect thereof)
in such proportion as is appropriate to reflect the relative fault of the indemnifying party and
the Indemnified Person in connection with the statements or omissions that resulted in such

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losses,
claims, damages or liabilities (or actions in respect thereof), as well as any other relevant
equitable considerations. The relative fault of such indemnifying party and Indemnified Person
shall be determined by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or omission or alleged omission to state a material fact relates to
information supplied by such indemnifying party or by such Indemnified Person, and the parties’
relative intent, knowledge, access to information and opportunity to correct or prevent such
statement or omission. The parties hereto agree that it would not be just and equitable if
contribution pursuant to this Section 5(d) were determined by pro rata allocation (even if the
Electing Holders or any underwriters, selling agents or other securities professionals or all of
them were treated as one entity for such purpose) or by any other method of allocation that does
not take account of the equitable considerations referred to in this Section 5(d). The amount paid
or payable by an Indemnified Person as a result of the losses, claims, damages or liabilities (or
actions in respect thereof) referred to above shall be deemed to include any legal or other fees or
expenses reasonably incurred by such Indemnified Person in connection with investigating or
defending any
such action or claim. No person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. The obligations of the Electing Holders and any
underwriters, selling agents or other securities professionals in this Section 5(d) to contribute
shall be several in proportion to the percentage of principal amount of Registrable Securities
registered or underwritten, as the case may be, by them and not joint.

     (e) Notwithstanding any other provision of this Section 5, in no event will any Electing
Holder be required to undertake liability to any person under this Section 5 for any amounts in
excess of the dollar amount of the proceeds to be received by such Holder from the sale of such
Holder’s Registrable Securities (after deducting any fees, discounts and commissions applicable
thereto) pursuant to any Shelf Registration Statement under which such Registrable Securities are
to be registered under the Securities Act.

     (f) The obligations of the Company under this Section 5 shall be in addition to any liability
which the Company may otherwise have to any Indemnified Person and the obligations of any
Indemnified Person under this Section 5 shall be in addition to any liability which such
Indemnified Person may otherwise have to the Company. The remedies provided in this Section 5 are
not exclusive and shall not limit any rights or remedies which may otherwise be available to an
Indemnified Person at law or in equity.

     
6. Liquidated Damages.

     (a) Pursuant to Section 2(a) hereof, the Company may, upon written notice to all Holders,
postpone having the Shelf Registration Statement declared effective for a reasonable period not to
exceed 60 days if the Company possesses material non-public information, the disclosure of which
would, in the reasonable judgment of the Company, have a material adverse effect on the Company and
its subsidiaries taken as a whole. Notwithstanding any such postponement, if (i) on the 91st day
following the date of this Agreement, a Shelf Registration

12

 

Statement has not been filed with the
Commission; (ii) on the 181st day following the date of this Agreement, the Shelf
Registration Statement has not been declared effective by the Commission, subject to the Company’s
right to postpone having the Shelf Registration Statement declared effective for an additional 60
days in event of material non-public information (as described in Section 2(a)); (iii) the Shelf
Registration Statement shall cease to be effective without being succeeded within five business
days by a post-effective amendment or a report filed with the Commission pursuant to the Exchange
Act that cures the failure of the Shelf Registration Statement to be effective; or (iv) the
Prospectus has been suspended as described in Section 2(c) longer than the period permitted in
Section 2(c) (each, a “Registration Default”), additional interest will accrue on the Notes as
liquidated damages (“Liquidated Damages”), from and including the day following such Registration
Default until but excluding the day such Shelf Registration Statement is so filed, or becomes
effective, or is no longer suspended, as applicable. Liquidated damages will accrue at an
additional rate per year equal to 0.25% of the principal amount to and including the 90th day
following such Registration Default; and 0.50% of the
principal amount from and after the 91st day following such Registration Default.

     (b) In the event that the use of the effective Shelf Registration Statement is suspended by
the Company (or the Electing Holders of Registrable Securities are otherwise prevented or
restricted by the Company from effecting sales pursuant thereto) (an “Effective Failure”) for more
than 45 days, whether or not consecutive, in any 90-day period, or for more than 90 days, whether
or not consecutive, during any 365-day period, then the Company shall pay Liquidated Damages to the
Electing Holders at a rate per annum equal to an additional 0.25% of the principal amount for the
period to and including the 90th day following such Effective Failure and 0.50% of the principal
amount for the period from and after the 91st day following such Effective Failure until the
earlier of (i) the time the Shelf Registration Statement again becomes effective or the Electing
Holders of Registrable Securities are again able to make sales under the Shelf Registration
Statement or (ii) the time the Effectiveness Period expires. For the purpose of determining an
Effective Failure, days on which the Company has been obligated to pay Liquidated Damages on the
Registrable Securities owned by such Electing Holders in accordance with the foregoing in respect
of a prior Effective Failure within the applicable 90-day or 365-day period, as the case may be,
shall not be included.

     (c) Any amounts to be paid as Liquidated Damages pursuant to paragraphs (a) or (b) of this
Section 6 shall be paid semi-annually in arrears, with the first semi-annual payment due on the
first Interest Payment Date (as defined in the Indenture), as applicable, following the date of
such Registration Default or Effective Failure. Such Liquidated Damages will accrue in respect of
the Securities that are Registrable Securities at the rates set forth in paragraphs (a) or (b) of
this Section 6, as applicable, on the principal amount of such Securities.

13

 

     (d) Notwithstanding anything to the contrary in this Agreement, the Liquidated Damages as set
forth in this Section 6 shall be the exclusive monetary remedy available to the Holders of
Registrable Securities for such Registration Default or Effective Failure. In no event shall the
Company be required to pay Liquidated Damages in excess of the applicable maximum amount of
one-half of one percent (0.50%) set forth above, regardless of whether one or multiple Registration
Defaults exist, and Holders shall not be precluded from pursuing or obtaining specific performance
or other equitable relief with respect to this Agreement. No Liquidated Damages shall accrue as to
any Registrable Security from and after the earlier of (i) the date on which such security is no
longer a Registrable Security and (ii) the time the Effectiveness Period expires.

     7. Miscellaneous.

     (a) Other Registration Rights. The Company may not grant registration rights that would
permit any person that is a third party the right to piggy-back on any Shelf Registration
Statement.

     (b) Specific Performance. Except as provided in Section 6(d), the parties hereto acknowledge
that there would be no adequate remedy at law if the Company fails to perform any of its
obligations hereunder and that the Purchasers and the Holders from time to time may be irreparably
harmed by any such failure, and accordingly agree that the Purchasers and such Holders, in addition
to any other remedy to which they may be entitled at law or in equity, shall be entitled to compel
specific performance of the obligations of the Company under this Registration Rights Agreement in
accordance with the terms and conditions of this Registration Rights Agreement, in any court of the
United States or any State thereof having jurisdiction.

     (c) Amendments and Waivers. This Agreement, including this Section 7(c), may be amended, and
waivers or consents to departures from the provisions hereof may be given, only by a written
instrument duly executed by the Company and the Holders of a majority in aggregate principal amount
of Registrable Securities then outstanding. Each Holder of Registrable Securities outstanding at
the time of any such amendment, waiver or consent or thereafter shall be bound by any amendment,
waiver or consent effected pursuant to this Section 7(c), whether or not any notice, writing or
marking indicating such amendment, waiver or consent appears on the Registrable Securities or is
delivered to such Holder.

     (d) Notices. All notices and other communications provided for or permitted hereunder
(including, without limitation, the expressions “advice,” “advising” or “furnishing”)shall be made
in writing by hand delivery, registered first-class mail, telecopier, electronic means (including
filings with DTC or the Commission) or any courier guaranteeing overnight delivery (a) if to a
Holder, at the most current address set forth on the records of the registrar under the Indenture,
(b) if to the Purchasers, at Lehman Brothers Inc., 745 Seventh Avenue, New York, New York 10019,
Attention: Syndicate Department (Fax: (646) 497-4815), with a copy to Davis Polk & Wardwell, 1600
El Camino Real, Menlo Park, CA 94025, Attention:

14

 

Alan F. Denenberg (Fax: 650-752-2111), (c) if to
the Company, at the Company’s address set forth in the Purchase Agreement with a copy to Wilson
Sonsini Goodrich & Rosati, Professional Corporation, 650 Page Mill Road, Palo Alto, California
94304, Attention: Robert Claassen. All such notices and communications shall be deemed to have
been duly given: at the time of delivery, if delivered by hand or electronic means; two business
days after being deposited in the mail, postage prepaid, if mailed; when receipt is acknowledged,
if telecopied; and on the next business day if timely delivered to an air courier guaranteeing
overnight delivery.

     (e) Parties in Interest. The parties to this Agreement intend that all Holders of Registrable
Securities shall be entitled to receive the benefits of this Agreement and that any Electing Holder
shall be bound by the terms and provisions of this Agreement by reason of such election with
respect to the Registrable Securities that are included in a Shelf Registration Statement. All the
terms and provisions of this Agreement shall be binding upon, shall inure to the benefit of and
shall be enforceable by the respective successors and assigns of the parties hereto and any Holder
from time to time of the Registrable Securities to the aforesaid extent. In the event that any
transferee of any Holder of Registrable Securities shall acquire Registrable
Securities, in any manner, whether by gift, bequest, purchase, operation of law or otherwise, such
transferee shall, without any further writing or action of any kind, be entitled to receive the
benefits of and, if an Electing Holder, be conclusively deemed to have agreed to be bound by and to
perform all of the terms and provisions of this Agreement to the aforesaid extent.

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

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

     (h) Governing Law. This Agreement shall be governed by and construed in accordance with the
laws of the State of New York.

     (i) Severability. In the event that any one or more of the provisions contained herein, or
the application thereof in any circumstances, is held invalid, illegal or unenforceable in any
respect for any reason, the validity, legality and enforceability of any such provision in every
other respect and of the remaining provisions hereof shall not be in any way impaired or affected
thereby, it being intended that all of the rights and privileges of the parties hereto shall be
enforceable to the fullest extent permitted by law.

     (j)
 Survival. The respective indemnities, agreements, representations, warranties and other
provisions set forth in this Agreement or made pursuant hereto shall remain in full force and
effect, regardless of any investigation (or any statement as to the results thereof) made by or on
behalf of any Electing Holder, any director, officer or partner of such Holder, any agent or

15

 

underwriter, any director, officer or partner of such agent or underwriter, or any controlling
person of any of the foregoing, and shall survive the transfer and registration of the Registrable
Securities of such Holder.

[Remainder of page intentionally left blank].

16

 

     Please confirm that the foregoing correctly sets forth the agreement between the Company
and you.

	 	 	 	 	 
	 	Very truly yours,

SYBASE, INC.

 	 
	 	By:  	/s/ PIETER VAN DER VORST 	 
	 	 	Name:  	Pieter Van der Vorst	 
	 	 	Title:  	Chief Financial Officer and

Senior Vice President	 
	 

The foregoing Agreement is

hereby confirmed and accepted

as of the date hereof:

LEHMAN BROTHERS INC.

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

By: LEHMAN BROTHERS INC.

	 	 	 
	By:
	 	/s/ CHRIS GAERTNER
	

	 	 
	

	 	Name: Chris Gaertner
	

	 	Title: Managing Director

By: MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

	 	 	 
	By:
	 	/s/ MARK WATT
	

	 	 
	

	 	Name: Mark Watt
	

	 	Title: Vice President

[Signature page to Registration Rights Agreement]

 

 

Appendix A

Sybase, Inc.

INSTRUCTION TO DTC PARTICIPANTS

__________, 2005

URGENT — IMMEDIATE ATTENTION REQUESTED

DEADLINE FOR RESPONSE: ________

          The Depository Trust Company (“DTC”) has identified you as a DTC Participant through which
beneficial interests in the Sybase, Inc. (the “Company”) 1.75% Convertible Subordinated Notes due
2025 (the “Securities”) are held.

          The Company is in the process of registering the Securities under the Securities Act of 1933
for resale by the beneficial owners thereof. In order to have their Securities included in the
registration statement, beneficial owners must complete and return the enclosed Notice of
Registration Statement and Selling Securityholder Questionnaire.

          It is important that beneficial owners of the Securities receive a copy of the enclosed
materials as soon as possible as their rights to have the Securities included in the
registration statement depend upon their returning the Notice and Questionnaire by ___.
Please forward a copy of the enclosed documents to each beneficial owner that holds interests in
the Securities through you. If you require more copies of the enclosed materials or have any
questions pertaining to this matter, please contact Daniel Cohen, Corporate Counsel, Sybase, Inc.,
One Sybase Drive, Dublin, CA 94568, phone: (925) 236-5305, email: dan.cohen-legal@sybase.com.

 

 

FORM OF SELLING SECURITYHOLDER NOTICE AND QUESTIONNAIRE

     The undersigned beneficial holder of 1.75% Convertible Subordinated Notes due 2025 (the
“Notes”) of Sybase, Inc. (the “Company”) and/or any shares of common stock, par value $0.001 per
share, issued or issuable upon conversion of the Notes (together with the Notes, the “Registrable
Securities”), of the Company understands that the Company has filed or intends to file with the
Securities and Exchange Commission a registration statement on Form S-3 (the “Shelf Registration
Statement”) for the registration and resale under Rule 415 of the Securities Act of 1933, as
amended (the “Securities Act”), of the Registrable Securities in accordance with the terms of the
Registration Rights Agreement (the “Registration Rights Agreement”) between the Company and the
initial purchasers named therein. A copy of the Registration Rights Agreement is available from
the Company upon request at the address set forth below. All capitalized terms not otherwise
defined herein shall have the meaning ascribed thereto in the Registration Rights Agreement.

     Each beneficial owner of Registrable Securities is entitled to the benefits of the
Registration Rights Agreement. In order to sell or otherwise dispose of any Registrable Securities
pursuant to the Shelf Registration Statement, a beneficial owner of Registrable Securities
generally will be required to be named as a selling securityholder in the related prospectus,
deliver a prospectus to purchasers of Registrable Securities and be bound by those provisions of
the Registration Rights Agreement applicable to such beneficial owner (including certain
indemnification provisions, as described below). Beneficial owners that do not complete this
Notice and Questionnaire and deliver it to the Company as provided below will not be named as
selling securityholders in the prospectus and therefore will not be permitted to sell any
Registrable Securities pursuant to the Shelf Registration Statement. Beneficial owners are
encouraged to complete and deliver this Notice and Questionnaire prior to the effectiveness of the
Shelf Registration Statement so that such beneficial owners may be named as selling securityholders
in the related prospectus at the time of effectiveness. However, upon request from a beneficial
owner that did not return a notice and questionnaire on a timely basis, we will deliver a notice
and questionnaire to such beneficial owner, and we will use our reasonable efforts to file within
fifteen business days any amendments or supplements to the shelf registration statement or
supplements to the related prospectus as are necessary to allow holders to be named as selling
securityholders. Notwithstanding any of the foregoing, the Company will not be required to file
more than one post-effective amendment to the shelf registration statement during any 90-day period
and will only be obligated to file a post-effective amendment when the principal amount of
Registrable Securities to be covered by such amendment is at least $10 million. The Company has
agreed to pay liquidated damages pursuant to the Registration Rights Agreement under certain
circumstances as set forth therein.

     Certain legal consequences arise from being named as a selling securityholder in the Shelf
Registration Statement and the related prospectus. Accordingly, holders and beneficial owners of
Registrable Securities are advised to consult their own securities law counsel regarding the
consequences of being named or not being named as a selling securityholder in the Shelf
Registration Statement and the related prospectus.

 

 

Notice

     The undersigned beneficial owner (the “Selling Securityholder”) of Registrable Securities
hereby gives notice to the Company of its intention to sell or otherwise dispose of Registrable
Securities beneficially owned by it and listed below in Item 3 (unless otherwise specified under
Item 3) pursuant to the Shelf Registration Statement. The undersigned, by signing and returning
this Notice and Questionnaire, understands that it will be bound by the terms and conditions of
this Notice and Questionnaire and the Registration Rights Agreement.

     Pursuant to the Registration Rights Agreement, the undersigned has agreed to indemnify and
hold harmless the Company, the Company’s directors and officers and each person, if any, who
controls the Company within the meaning of either Section 15 of the Securities Act or Section 20 of
the Securities Exchange Act of 1934, as amended (the “Exchange Act”), from and against certain
losses arising in connection with statements concerning the undersigned made in the Company’s Shelf
Registration Statement or the related prospectuses in reliance upon the information provided in
this Notice and Questionnaire. If the selling securityholder transfers all or any portion of the
Registrable Securities listed in Item 3 below after the date on which such information is provided
to the Company, the selling securityholder agrees to notify the transferee(s) at the time of
transfer of its rights and obligations under this Notice and Questionnaire and the Registration
Rights Agreement.

     The undersigned hereby provides the following information to the Company and represents and
warrants that such information is accurate and complete:

A-2

 

Questionnaire

	 	1.  	(a)      Full Legal Name of Selling Securityholder:
	 	   	 
	 
	 	   	

	 	(b)  	Full Legal Name of Registered Holder (if not the same as (a) above) through which
Registrable Securities listed in Item 3 below are held:

	 	   	

	 	(c)  	Full Legal Name of DTC Participant (if applicable and if not the same as (b) above)
through which Registrable Securities listed in Item 3 below are held:

	 	   	

	 	2.  	Address for Notices to Selling Securityholder:
	 	   	 
	 
	 	   	

	 	 	 	 	 
	

	 	Telephone:	 	 
	

	 	

	

	 	Fax:	 	 
	

	 	

	

	 	E-mail:	 	 
	

	 	

	

	 	Contact Person:	 	 
	

	 	

	 	3.  	Beneficial Ownership of Securities:
	 
	 	   	

	 	(a)  	Type and Principal Amount of Registrable Securities beneficially owned:

	 	   	

	 	(b)  	CUSIP No(s). of such Registrable Securities beneficially owned:

	 	   	

	 	(c)  	Were the securities listed in Item 3(a) above acquired in the ordinary course of business?

	 
	   	o Yes.

	 
	   	o No.
	 
	(d)  	At the time of the purchase of the securities listed in Item 3(a) above, did the Selling
Securityholder have any agreements or understandings, directly or indirectly, with any
person to distribute the securities?

	 
	   	o Yes.

	 
	   	o No.

A-3

 

	 	(e)  	If your response to Item 3(d) above is yes, please describe such agreements or
understandings:

	 	   	

	 
	 	4.  	Beneficial Ownership of other Company securities owned by the Selling Securityholder:
	 
	 	   	Except as set forth below in this Item 4, the undersigned is not the beneficial or
registered owner of any securities of the Company other than the Registrable Securities
listed above in Item 3.

	 	(a) Type and Amount of Other Securities beneficially owned by the Selling Securityholder:

	 	   	

	 	(b) CUSIP No(s). of such Other Securities beneficially owned:

	 	   	

	 	5.  	(a) Broker-Dealer Status:

	 	   	Is the Selling Securityholder a registered broker-dealer?
	 
	 	   	o Yes.
	 
	 	   	o No.
	 
	 	   	Note that in general we will be required to identify any registered broker-dealer as an
underwriter in the prospectus.
	 
	 	   	If so, please answer the remaining questions in this section.

	 	(i)  	If the undersigned is a registered broker-dealer, please indicate whether the
undersigned purchased its Registrable Securities for investment or acquired them as
transaction-based compensation for investment banking or similar services.

	 	   	

	 	   	

	   	If the undersigned is a registered broker-dealer and received its Registrable Securities
other than as transaction-based compensation, the Company is required to identify you as an
underwriter in the Shelf Registration Statement and related Prospectus.

	 	(ii)  	Except as set forth below, if the undersigned is a registered broker-dealer, the
undersigned does not plan to make a market in the Registrable Securities. If the
undersigned plans to make a market in the Registrable Securities, please indicate whether
you plan to use the prospectus relating to the Registrable Securities as a market-making
prospectus.

	 	   	

	 	   	

A-4

 

	 	(b)  	Affiliation with Broker-Dealers:
	 
	 	   	Is the Selling Securityholder an affiliate of a registered
broker-dealer? For purposes of this Item 5(b), an “affiliate” of a
specified person or entity means a person or entity that directly, or
indirectly through one or more intermediaries, controls or is
controlled by, or is under common control with, the person or entity
specified.
	 
	 	   	o Yes.

o No.
	 
	 	   	If so, please answer the remaining questions in this section.

	 	(i)  	Please describe the affiliation between the Selling Securityholder
and any registered broker-dealers:

	 	   	

	 	   	 
	 	   	

	 	   	 
	 	   	

	 
	 	   	 

	 	(ii)  	If the Notes were purchased by the Selling Securityholder other
than in the ordinary course of business, please describe the
circumstances:

	 	   	

	 	   	 
	 	   	

	 	   	 
	 	   	

	 	(iii)  	If the Selling Securityholder, at the time of its purchase of
Registrable Securities, has had any agreements or understandings,
directly or indirectly, with any person to distribute the Registrable
Securities, please describe such agreements or understandings:

	 	   	

	 	   	 
	 	   	

	 	   	 
	 	   	

	 	   	Note that if the Selling Securityholder is an affiliate of a
broker-dealer and did not purchase its notes in the ordinary course of
business or at the time of the purchase had any agreements or
understandings, directly or indirectly, to distribute the securities,
we must identify the Selling Securityholder as an underwriter in the
prospectus.

A-5

 

	 	6.  	Relationship with the Company:

Except as set forth below, neither the undersigned nor any of its
affiliates, officers, directors or principal equityholders (5% or
more) has held any position or has had any other material relationship
with the Company (or its predecessors or affiliates) during the past
three years.
	 
	 	   	 
	 	   	State any exceptions here:
	 
	 	   	 
	 	   	

	 	   	 
	 	   	

	 	   	 
	 	7.  	Nature of Beneficial Ownership. The purpose of this question is to
identify the ultimate natural person(s) or publicly held entity that
exercise(s) sole or shared voting or dispositive power over the
Registrable Securities.

	 	(a)  	Is the Selling Securityholder a natural person?
	 
	 	   	o Yes.
	 
	 	   	o No.
	 
	 	(b)  	Is the Selling Securityholder required to file, or is it a
wholly-owned subsidiary of a company that is required to file,
periodic and other reports (for example, Forms 10-K, 10-Q, 8-K) with
the Securities and Exchange Commission pursuant to Section 13(a) or
15(d) of the Exchange Act?
	 
	 	   	o Yes.
	 
	 	   	o No.
	 
	 	(c)  	If you answered “No” to both questions above, please identify the
controlling person(s) of the Selling Securityholder (the “Controlling
Entity”). If the Controlling Entity is not a natural person or a
publicly held entity, please identify each controlling person(s) of
such Controlling Entity. This process should be repeated until you
reach natural persons or a publicly held entity that exercise sole or
shared voting or dispositive power over the Registrable Securities:

	 	   	
 
 

 

A-6

 

	 	   	If you need more space for this response, please attach additional
sheets of paper. Please be sure to indicate your name and the number
of the item being responded to on each such additional sheet of paper,
and to sign each such additional sheet of paper before attaching it to
this Questionnaire. Please note that you may be asked to answer
additional questions depending on your responses to the above
questions.

	 	8.  	Plan of Distribution:

Except as set forth below, the undersigned (including its donees or
pledgees) intends to distribute the Registrable Securities listed
above in Item 3 pursuant to the Shelf Registration Statement only as
follows (if at all): Such Registrable Securities may be sold from time
to time directly by the undersigned or alternatively, through
underwriters, broker-dealers or agents. If the Registrable Securities
are sold through underwriters or broker-dealers, the Selling
Securityholder will be responsible for underwriting discounts or
commissions or agent’s commissions. Such Registrable Securities may
be sold in one or more transactions at fixed prices, at prevailing
market prices at the time of sale, at varying prices determined at the
time of sale, or at negotiated prices. Such sales may be effected in
transactions (which may involve block transactions) (i) on any
national securities exchange or quotation service on which the
Registrable Securities may be listed or quoted at the time of sale,
(ii) in the over-the-counter market, (iii) in transactions otherwise
than on such exchanges or services or in the over-the-counter market,
or (iv) through the writing of options. In connection with sales of
the Registrable Securities or otherwise, the undersigned may enter
into hedging transactions with broker-dealers, which may in turn
engage in short sales of the Registrable Securities, short and deliver
Registrable Securities to close out such short positions, or loan or
pledge Registrable Securities to broker-dealers that in turn may sell
such securities.
	 
	 	   	State any exceptions here:

	 	

	 	 
	 	

	 	 

	   	Note: In no event will such method(s) of distribution take the form of
an underwritten offering of the Registrable Securities without the
prior agreement of the Company.

A-7

 

	 	9.  	Short Positions in the Company’s Common Stock:
	 
	 	   	Except as set forth below, the undersigned Selling Securityholder does
not have any open short positions in the Company’s common stock.
	 
	 	   	 
	 	

     By signing below, the undersigned hereby confirms to the Company that
it is aware of Telephone Interpretation A.65 of the Division of
Corporation Finance’s Manual of Publicly Available Telephone
Interpretations (July 1997).

	 	10.  	Securities Received From Named Selling Securityholder:
Did the Selling Securityholder receive its Registrable Securities
listed above in Item 3 as a transferee from selling securityholder(s)
previously identified in the Shelf Registration Statement?
	 
	 	   	o Yes.
	 
	 	   	o No.
	 
	 	   	If so, please answer the remaining questions in this section.

	 	(i)  	Did the Selling Securityholder receive such Registrable Securities
listed above in Item 3 from the named selling securityholder(s) prior
to the effectiveness of the Shelf Registration Statement?
	 
	 	   	o Yes.
	 
	 	   	o No.
	 
	 	(ii)  	Identify below the name(s) of the selling securityholder(s) from
whom the Selling Securityholder received the Registrable Securities
listed above in Item 3 and the date on which such securities were
received.
	 	   	 
	 	

	 	   	 
	 	

	 	   	 
	 	

     The undersigned acknowledges that it understands its obligation to comply with the
provisions of the Exchange Act and the rules thereunder relating to stock manipulation,
particularly Regulation M thereunder (or any successor rules or regulations), in connection with
any offering of Registrable Securities pursuant to the Shelf Registration Statement.

     The undersigned agrees that neither it nor any person acting on its behalf will engage in any
transaction in violation of such provisions.

     The Selling Securityholder hereby acknowledges its obligations under the Registration Rights
Agreement to indemnify and hold harmless certain persons as set forth therein.

A-8

 

     Pursuant to the Registration Rights Agreement, the Company has agreed under certain
circumstances to indemnify the Selling Securityholders against certain liabilities.

     In accordance with the undersigned’s obligation under the Registration Rights Agreement to
provide such information as may be required by law for inclusion in the Shelf Registration
Statement, the undersigned agrees to promptly notify the Company of any inaccuracies or changes in
the information provided herein that may occur subsequent to the date hereof at any time while the
Shelf Registration Statement remains effective. All notices hereunder and pursuant to the
Registration Rights Agreement shall be made in writing at the address set forth below.

     In the event that the undersigned transfers all or any portion of the Registrable Securities
listed in Item 3 above after the date on which such information is provided to the Company, the
undersigned agrees to notify the transferee(s) at the time of transfer of its rights and
obligations under this Notice and Questionnaire and the Registration Rights Agreement.

     By signing below, the undersigned consents to the disclosure of the information contained
herein in its answers to Items 1 through 8 above and the inclusion of such information in the Shelf
Registration Statement and the related prospectus. The undersigned understands that such
information will be relied upon by the Company in connection with the preparation or amendment of
the Shelf Registration Statement and the related prospectus.

     Once this Notice and Questionnaire is executed by the undersigned beneficial holder and
received by the Company, the terms of this Notice and Questionnaire, and the representations and
warranties contained herein, shall be binding on, shall inure to the benefit of and shall be
enforceable by the respective successors, heirs, personal representatives and assigns of the
Company and the undersigned beneficial holder. This Notice and Questionnaire shall be governed in
all respects by the laws of the State of New York.

A-9

 

     IN WITNESS WHEREOF, the undersigned by authority duly given, has caused this Notice and
Questionnaire to be executed and delivered either in person or by its duly authorized agent.

	 	 	 	 	 	 	 
	 	 	BENEFICIAL OWNER
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name:

Title:
	 	 
	

	 	Dated:	 	 	 	 
	

	 	 	 	 	 	 

     PLEASE RETURN THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE TO SYBASE, INC. AT:

Legal Department

Sybase, Inc.

One Sybase Drive

Dublin, California 94568

Attention: Daniel Cohen, Corporate Counsel

(925) 236-5305

dan.cohen-legal@sybase.com

A-10

 

Exhibit 1

to Appendix A

NOTICE OF TRANSFER PURSUANT TO REGISTRATION STATEMENT

Sybase, Inc.

One Sybase Drive

Dublin, CA 94568

Attention: General Counsel

U.S. Bank National Association

633 West Fifth Street, 24th Floor

Los Angeles, CA 90071

Attention: Corporate Trust Services

Re: Sybase, Inc. (the “Company”) 1.75% Convertible Subordinated

Notes due 2025 (the “Notes”)

Dear Sirs:

     Please be advised that                                                        has transferred [$                                         aggregate principal
amount of the above-referenced Notes/                                   shares of the Company’s common stock, issued upon
conversion, repurchase or redemption of Notes], pursuant to an effective Registration Statement on
Form S-3 (File No. 333-                                   ) filed by the Company.

     We hereby certify that the prospectus delivery requirements, if any, of the Securities Act of
1933, as amended, have been satisfied with respect to the transfer described above and that the
above-named beneficial owner of the Notes or common stock is named as a selling securityholder in
the Prospectus dated                                   , or in amendments or supplements thereto, and that the aggregate
principal amount of the Notes or number of shares of common stock transferred are [a portion of]
the Notes or shares of common stock listed in such Prospectus as amended or supplemented opposite
such owner’s name.

	 	 	 	 	 
	Dated:
	 	 	 	 
	

	 	Very truly yours,	 	 
	 
	 	 	 	 
	

	 	 	 	 
	

	 	(Name)	 	 
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	 	 	(Authorized Signature)

A-11exv10w48

 

Exhibit 10.48

EMPLOYMENT AGREEMENT

     This EMPLOYMENT AGREEMENT (this “Agreement”) is being entered into as of December 15, 2004, by
and between @Road, Inc., a Delaware corporation (“@Road”) and Martin Knestrick (“Employee”).

1. Commencement of Employment

     The effectiveness of this Agreement is contingent upon the final consummation of the
acquisition of Vidus Limited (“Vidus”) by @Road pursuant to the terms of the Acquisition Agreement
dated as of the date hereof by and among @Road, Vidus and NV Partners III-BT LP. Employee’s
effective date of employment with @Road under this Agreement will be the day following the final
consummation of the acquisition (the “Effective Date”). On that day, Employee will be eligible to
participate in the regular health insurance benefits and other employee benefit plans established
by @Road generally for its employees. Employee will receive credit for his employment at @Road for
purposes relating to the vacation policy and benefit plans (other than vesting of any future stock
options granted to Employee by @Road), as if Employee’s employment under this Agreement had started
the date Employee started work with Vidus to the extent possible under the applicable plan or
benefit program.

2. At-Will Employment

     The term of this Agreement is 18 months from the Effective Date (the “Term”). However, this
Agreement shall not be construed as constituting a contract of employment for any specific period
of time, but will create an “employment at will” relationship that may be terminated at any time by
Employee or @Road, with or without cause, subject to the various rights and remedies of the parties
contemplated by the remainder of this Agreement. Employee’s signature at the end of this Agreement
confirms that no promises or agreements that are contrary to the at-will relationship have been
committed to Employee during any of Employee’s discussions with @Road or Vidus, and that this
letter contains the complete agreement regarding the terms and conditions of Employee’s employment
with @Road. Employee’s signature will also confirm that Employee understands and agrees that
neither Employee’s job performance nor promotions, commendations, bonuses or the like from @Road
will give rise to or in any way serve as the basis for modification, amendment, or extension, by
implication or otherwise, of Employee’s employment.

3. Compensation

(a) In consideration for all rights and services provided by Employee under this Agreement,
Employee shall receive a base salary during the Term of this Agreement at the annual rate
of $200,000 per year, paid semi-monthly. Following the completion of the Term of this
Agreement, Employee’s total compensation

 

 

will be re-evaluated in connection with the annual compensation review by @Road.

(b) Employee will be entitled to receive bonus compensation, to the extent earned, during
the Term of this Agreement in accordance with the bonus program described in Annex A.

(c) As a term of Employee’s employment, the management of @Road will recommend to its Board
of Directors that Employee be granted (i) options to purchase 84,190 shares of @Road common
stock under the @Road Non-Stockholder Approved Option Plan (the “Non-Approved Plan”) (the
“Start Option”) and (ii) options to purchase that number of shares of @Road common stock
under the @Road 2000 Stock Option Plan (the “Stock Option Plan”) equal to the sum of:
300,000 less the number of @Road Common Shares received by Employee in connection with the
completion of the Acquisition Agreement dated as of December 15, 2004 by and among the
Company, Vidus Limited and NV Partners III-BT LP less 84,190 (the “Bonus Option). Such
options will granted by the @Road Board of Directors within five business following the
Effective Date. The exercise price per share for such options will be the fair market
value of one share of @Road common stock on the date of grant as determined by the Board of
Directors. Employee’s options will vest (i) as to Start Option, monthly in eighteen equal
installments over the eighteen-month period commencing on the date of grant and (ii) as to
the Bonus Option, on the day immediately following the date that is eighteen months
following the date of grant.

4. Title and Position

       Employee shall initially serve under this Agreement as Managing Director, Europe, for @Road
and Employee will initially report to Krish Panu, Chief Executive Officer of @Road. In the event
Employee’s job title and/or responsibilities change during the Term of the Agreement, such new
title and position will thereafter be Employee’s title and position for the purposes of this
Agreement.

5. Duties

     Employee will be responsible for developing and executing the annual operating plan for
European operations. Employee will be expected to personally and diligently perform this function
(which includes reasonable travel and periodic travel between Company’s California office and its
subsidiary office in the United Kingdom for up to extended stays appropriate to perform Employee’s
responsibilities hereunder) on a full-time and exclusive basis and to perform such services as
@Road or any of its divisions may reasonably require. Employee will also be expected to observe
all reasonable policies, standards and regulations adopted by @Road in connection with the
operation of its business and carry out all reasonable instructions of @Road. Employee will at all
times perform all of the duties and obligations reasonably required of Employee under

 

 

this Agreement in a loyal and conscientious manner and to the best of Employee’s ability and
experience.

6. Expenses

     To the extent Employee incurs necessary and reasonable business expenses in the course of
Employee’s employment, Employee shall be reimbursed for such expenses, subject to the then current
policies of @Road regarding reimbursement of such business expenses.

7. Protection of Employer’s Interests

     In the course of Employee’s performance of this Agreement, it is likely that Employee will
become knowledgeable about confidential and or proprietary information related to the operations,
products and services of @Road and its clients. To protect the interests of @Road and its clients,
all employees are required to read and sign a PROPRIETARY RIGHTS AND CONFIDENTIALITY AGREEMENT
prior to beginning employment. A copy of this agreement is attached to this Agreement as Annex B.
Employee is required to sign it and return it along with Employee’s signed copy of this Agreement.

8. Termination

     (a) Termination by @Road for Cause. At any time during the Term of this Agreement,
@Road may terminate Employee’s employment under this Agreement upon the occurrence of any of the
following events (such events, individually or in the aggregate, shall constitute “Cause”
hereunder):

          (i) in the event that Employee shall fail or refuse to comply in any material respect with
the policies, standards or regulations of @Road from time-to-time established (and applicable to
all similarly situated employees of @Road), provided that @Road has provided a written notice to
Employee which specifically sets forth the factual basis for such failure or refusal and @Road has
allowed Employee fourteen (14) days following delivery of such notice to cure any curable failure
or refusal;

          (ii) in the event that Employee, following written request from @Road, shall fail or refuse,
in any material respect, to perform capably, diligently and competently the duties assigned to
Employee by @Road in accordance with Section 5 above, provided that @Road has provided a written
notice to Employee which specifically sets forth the factual basis of such failure or refusal and
@Road has allowed Employee fourteen (14) days following delivery of such notice to cure any such
curable failure or refusal;

          (iii) in the event that Employee conducts himself in a dishonest, unethical or fraudulent
manner, which materially discredits @Road or is materially detrimental to the reputation, character
or standing of @Road;

 

 

          (iv) in the event that Employee takes deliberate actions with an intent to injure @Road;

          (v) in the event that Employee is convicted of a felony or crime of moral turpitude or enters
a plea of nolo contendre in response to a charge of such a crime; or

          (vi) in the event that Employee materially breaches this Agreement, the Proprietary Rights and
Confidentiality Agreement or the Non-Competition Agreement by and between the parties hereto of
even date hereof (the “Noncompetition Agreement”).

     @Road will not have any further obligation to Employee upon such termination by @Road for
Cause or termination by the Employee other than for Good Reason (as defined below) (other than to
pay Employee any amounts already earned prior to termination), and Employee will continue to be
bound by the provisions of Sections 7 and 9.

     (b) Termination by Employee for Good Reason. At any time during the Term of this
Agreement, Employee may terminate his Employment under this Agreement upon the occurrence of any of
the following events (such events, individually or in the aggregate, shall constitute “Good Reason”
hereunder):

          (i) in the event of a material reduction of Employee’s base salary from the base salary set
forth in Section 3(a) above; or

          (ii) in the event that there occurs a material reduction in the Employee’s responsibilities
from the responsibilities set forth in Section 5 above, provided that @Road has provided a written
notice to Employee which specifically sets forth the factual basis of such failure or refusal and
@Road has allowed Employee fourteen (14) days following delivery of such notice to cure any such
curable failure or refusal. Any relocation(s) of Employee between the U.S. and the U.K. for any
reason shall not be considered a “material reduction in the Employee’s responsibilities” for the
purposes of this Section 8.

     @Road will have the obligations to Employee set forth in Section 8(b) below upon such
termination for Good Reason, and Employee will continue to be bound by the provisions of Sections 7
and 9.

     (c) Termination Without Cause; Termination for Good Reason. @Road may terminate this
Agreement at any time and without Cause by giving written notice to Employee. Employee may
terminate this Agreement at any time with Good Reason by giving written notice to @Road. Following
any such termination and subject to the execution by employee of a general release of all claims,
@Road will pay Employee a severance payment equal to Employee’s base salary payable hereunder
through the

 

 

remainder of the Term, less applicable withholdings, in accordance with the then current payroll
policy of @Road.

     (d) Termination of Option Vesting. Except as otherwise provided in the Stock Option
Plan under which Employee is granted an option, any options granted to Employee by @Road during the
term of Employee’s employment hereunder will immediately cease vesting upon Employee’s termination
with or without Cause and with or without Good Reason and will thereafter be exercisable only if
and as provided in Employee’s respective option agreement(s), the Stock Option Plan and the
Non-Approved Plan.

9. Arbitration

     This Agreement confirms the parties’ mutual agreement to binding arbitration under the
Employment Dispute rules of the American Arbitration Association, should there be any dispute
related to the termination of our employment relationship or the terms of Employee’s employment
relationship with @Road.

10. Entire Agreement; Amendments; Waiver, Etc.

     (a) This Agreement, together with the Stock Option Plan, option agreements, the Noncompetition
Agreement, and the Proprietary Rights and Confidentiality Agreement referred to herein, represents
the entire agreement and understanding between the parties as to the subject matter herein and
supersedes all prior or contemporaneous agreements and statements, whether written or oral,
concerning the terms of Employee’s employment. No waiver, amendment or modification of any of the
provisions of this Agreement shall be binding unless in writing and signed by authorized
representatives of the parties hereto.

     (b) In case any provision of this Agreement shall be invalid, illegal or otherwise
unenforceable, the validity, legality and enforceability of the remaining provisions shall in no
way be affected or impaired thereby.

     (c) No waiver by either party of any breach by the other party of any provision or condition
of this Agreement shall be deemed a waiver of any similar or dissimilar provision or condition at
the same or any prior or subsequent time.

     (d) This Agreement shall be governed by and construed in accordance with the laws of the State
of California without regard to conflict of law principles.

 

 

12. Notices

     All notices which either party is required or may desire to give the other shall be in writing
and given either personally or by depositing the same in the United States mail addressed to the
party to be given notice as follows:

	 	 	 	 	 
	

	 	To @Road:
	 	@Road, Inc.
	

	 	 	 	Attn: General Counsel
	

	 	 	 	47200 Bayside Parkway
	

	 	 	 	Fremont, California 94538
	

	 	 	 	 
	

	 	To Employee:
	 	124 Red Hill Circle
	

	 	 	 	Tiburon, CA 94920

	 	 	 
	ACCEPTED AND AGREED TO:
	 	 
	Employee
	 	 
	 
	 	 
	/s/ Martin Knestrick
	 	 
	 
	 	 
	Martin Knestrick
	 	 
	 
	 	 
	Date: 15 December 2004
	 	 
	 
	 	 
	AGREED AND ACKNOWLEDGED:
	 	 
	 
	 	 
	@Road, Inc.
	 	 
	 
	 	 
	By: /s/ Krish Panu
	 	 
	 
	 	 
	Title: President
	 	 
	 
	 	 
	Date: December 15, 2004
	 	 

 

 

Annex A

Bonus Plan

During the @Road 2005 year, Employee shall be eligible for the following bonus compensation:

	 	•  	“Basic bonus amount”

	 	•  	For any revenue up to USD 37.5 million in revenue recognized under U.S. GAAP by
@Road during the @Road 2005 year for the sale of software licenses, support and
maintenance and professional services for Vidus’ taskforce product suite, as in
existence on the date hereof and hereafter upgraded and updated (but excluding any
revenue recognized from or if bundled with taskforce apportioned to the sale or
license of any @Road products or services as in existence on the date hereof and
hereafter upgraded and updated) anywhere in the world (the “Recognized Revenue
Amount”), Employee shall earn the basic bonus amount calculated to be product of:
(100,000/37,500,000) * Recognized Revenue Amount.
	 
	 	•  	No more than USD 100,000 is payable pursuant to the basic bonus amount formula set
forth above.

By way of example, if the Recognized Revenue Amount for the @Road 2005 second quarter is USD 10
million, then the basic bonus amount is USD 26,667.

	 	•  	“Accelerator bonus amount”

	 	•  	In addition to amounts earned under the basic bonus amount above, for revenue
recognized in excess of USD 37.5 million and which is recognized under U.S. GAAP by
@Road during the @Road 2005 year for the sale of software licenses, support and
maintenance and professional services for Vidus’ taskforce product suite, as in
existence on the date hereof and hereafter upgraded and updated (but excluding any
revenue recognized from or if bundled with taskforce apportioned to the sale or
license of any @Road products or services as in existence on the date hereof and
hereafter upgraded and updated) anywhere in the world (the “Accelerator Recognized
Revenue Amount”), Employee shall earn the accelerator bonus amount calculated to be
the product of: (100,000/37,500,000) * 1.15 * Accelerator Recognized Revenue Amount.
	 
	 	•  	Employee shall not be eligible to earn any accelerator bonus amount until the total
basic bonus amount of USD 100,000 is earned by Employee.

 

 

	 	•  	There is no limit to the amount payable pursuant to the accelerator bonus amount
formula set forth above.
	 
	 	•  	By way of example, if the Accelerator Recognized Revenue Amount for the @Road 2005
fourth quarter is USD 5 million, then the accelerator bonus amount is USD 15,333.

Conditions applicable to both the basic bonus amount and the accelerator bonus amount

	 	•  	To be eligible to earn any bonus compensation, Employee must be employed by @Road or
one of its subsidiaries throughout the @Road 2005 quarter for which a bonus was earned,
must be substantially responsible for the sales and marketing of the Vidus taskforce
product suite during such quarter, and must be employed by @Road or one of its
subsidiaries at the time of payment of the corresponding earned bonus amount, if any.
	 
	 	•  	All revenue recognized shall be stated in United States dollars. For any currency
exchange rate calculation required hereunder, the currency exchange rate for converting
any foreign currency into United States dollars used by the @Road Finance Department for
its quarterly financial results reporting activities shall be used.
	 
	 	•  	Any earned bonus amount:

	 	•  	Shall be calculated as set forth herein;
	 
	 	•  	Is a gross amount subject to all applicable taxes and withholding;
	 
	 	•  	Shall be paid in U.S. dollars;
	 
	 	•  	Shall be calculated quarterly in accordance with @Road quarters; and
	 
	 	•  	Shall be paid quarterly in accordance with @Road quarters five (5) business days
after the public announcement by @Road of its quarterly results for such quarter.

	 	•  	For the avoidance of doubt:

	 	•  	@Road typically announces its quarterly results 3-5 weeks after the end of a
quarter.
	 
	 	•  	Employee shall not be eligible for any other bonus plan, such as the @Road
Quarterly Bonus Plan or any @Road sales commission plans currently in existence or any
plan which may be created during the Term.

During December 2005, Employee and the Chief Executive Officer of @Road shall meet to discuss a new
Employee bonus plan, if any, applicable to the portion of the Term in the @Road 2006 year.

 

 

Annex B

@Road, Inc. 

Proprietary Rights and Confidentiality Agreement

(Employees)

     This Agreement is entered into by and between @Road, Inc., a Delaware corporation, (the
“Company”) and the employee whose name is set forth on the signature page hereto
(“Employee”).

     In consideration of Employee’s employment or continued employment, as the case may be,
the Company and Employee agree as follows:

1. CONFIDENTIALITY

     1.1 Definition. As used herein, “Confidential Information” shall include
information known by the Company that (a) derives independent economic value, actual or potential,
from not being generally known to the public or to other persons who can obtain economic value from
its disclosures or use and (b) is the subject of efforts that are reasonable under the
circumstances to maintain its secrecy (see California Civil Code 3426 et seq.), as well as any
information which is related to the business of the Company or the clients, customers, suppliers,
or other parties which may be made known to Employee, learned, discovered, or developed by Employee
during the period of employment by the Company which is not generally know outside the Company. By
way of example, Confidential Information includes not only technical information such as designs,
software, and parts lists and service features but also business information, such as
business/market areas, market research, plans, forecasts, strategies, pricing, lists of personnel,
compensation information, career prospects, customers or sales prospects, suppliers or channel
partners, unpublished financial data or statements, budgets and terms of contracts.

     1.2 Relationship of trust. Employee acknowledges that his or her employment by the
Company creates a relationship of trust and confidence with respect to Confidential Information of
the Company, and of every client, customer, supplier or other party, whom the Company conducts
business which was made known to the Employee by the Company of such other party, or learned,
discovered, or developed by Employee during the period of his or her employment.

     1.3 Non-Disclosure. Employee agrees that at all times, both during Employee’s
employment by the Company and after its termination, Employee will keep in strictest confidence and
trust and maintain the secrecy of all Confidential Information, and Employee will not use or
disclose any Confidential Information without the written consent of the Company, except as may be
necessary in the ordinary course of performing his or her duties as an employee of the Company.

1

 

     1.4 Former Employer Information. Employee will not, during his or her employment with
the Company, (a) improperly use or disclose any Confidential Information, proprietary information
or trade secrets of any former or concurrent employers or companies, if any, and (b) will not bring
onto the premises of the Company any property belonging to Employee’s former or concurrent
employers or companies, if any, unless consented to in writing by such employers or companies.
Employee represents to the Company that he or she has not entered into any oral or written
agreement in conflict with this Section 1.4.

     1.5 Return of Company Materials. Upon the termination of his or her employment with
the Company for any reason, Employee will deliver to the Company all documents, notes, drawings,
specifications, programs, data, and other materials of any nature pertaining to his or her work
with the Company.

     1.6 Obligations Imposed by Third Parties. Employee acknowledges that the Company,
from time to time, may have agreements with other persons or governmental agencies which impose
obligations or restrictions on the Company regarding inventions made during the course of work or
regarding the confidential nature of such work. Employee agrees to be bound by all such
obligations and restrictions and to take all action necessary by him or her to discharge the
obligations of the Company under such agreement.

2. INVENTIONS

     2.1 Disclosure to the Company.

          2.1.1 Employee agrees to promptly disclose to the Company (or any persons designated by
it) all discoveries, developments, designs, improvements, inventions, formulas, algorithms,
processes, techniques, software, programs, know-how, and data, whether or not patentable or
registrable under copyright or similar statues, made or conceived or reduced to practice or learned
by Employee, either alone or jointly with others that (a was developed using any trade secret or
Confidential Information of the Company, (b) results from any work performed by Employee for the
Company and/or for 180 days after termination of his or her employment with the Company and is
useful to the Company or relates at the time of conception or reduction to practice to the
Company’s business or it’s actual or demonstrably anticipated research or development. All such
information or materials are collectively referred to in this Agreement as “Inventions.”

          2.1.2 The Company requests, and the Employee agrees to disclose to the Company upon such
request, any information or materials of the kind described above for the purpose of determining
whether they constitute “Inventions” as defined above. The Company agrees to receive all such
information and/or materials in confidence.

     2.2 Proprietary Interest. Employee agrees that all Confidential Information and
Inventions shall be the sole property of the Company and its assigns, and the Company and its
assigns shall be the sole owner of all patents, copyrights, and other rights in connection with
such Confidential Information and Inventions.

2

 

     2.3 Assignment of Proprietary Interests. Except as provided in Section 2.5 below,
Employee hereby assigns to the Company and/or its assigns, any right, title, and interest he or she
may have or acquire in such Confidential Information or Inventions and agrees to assist the Company
and its assigns in every proper way (but at the expense of the Company or its assigns) to obtain
and enforce patents, copyrights, and other rights and protections relating to such Confidential
Information and Inventions in any and all countries.

     2.4 Special Power of Attorney. If the Company or its assigns is unable, after
reasonable effort, to secure Employee’s signature on any document or documents needed to apply for
or prosecute any patent, copyright, or other right or protection relating to any Confidential
Information or Invention, whether because of Employee’s absence, physical or mental incapacity or
for any other reason whatsoever, Employee hereby irrevocably designates and appoints the Company
and its assigns, and their duly authorized officers and agents, and each of them, as Employee’s
agent and attorney-in-fact, to act for and in his or her behalf and stead to execute and file any
such application or applications and to so all other lawfully permitted acts to further the
prosecution and issuance of patents, copyrights, or other rights or protections thereon with the
same legal force and effect as if executed by Employee. Employee acknowledges that the foregoing
special power of attorney is coupled with an interest of the Company and its assigns in the subject
of special power.

     2.5 Exception to Assignment. Any provision in this agreement requiring Employee to
assign his or her rights in or to any Confidential Information or Invention does not apply to any
Confidential Information or Invention that qualifies fully under provisions of Section 2870 of the
California Labor Code. Section 2870 of the California Labor Code provides that any provisions in
an employment agreement which requires the Employee to assign his or her rights to any inventions
shall: not apply to an invention that the employee developed entirely on his or her own time
without using the employer’s equipment, supplies, facilities, or trade secret information, except
for those inventions that either: (1) Relate at the time of conception or reduction to practice of
the invention to the employer’s business, or actual or demonstrably anticipated research or
development of the employer; or (2) Result from any work performed by the employee for the
employer.

3. COMPETITIVE BUSINESS

     3.1 Competition During Employment. During Employee’s employment with the Company,
Employee agrees not to engage in any employment or business which is competitive with or similar to
the present or anticipated business of the Company, or which would interfere with the performance
of his of her responsibilities to the Company.

     3.2 Restrictions on Solicitation. Employee also agrees that for a period of twelve
(12) months immediately following the termination of his or her employment with the Company for any
reason, whether with or without cause, not to either directly or indirectly: (a) call on, solicit
or take away any of the customers of the Company on whom he or she called or with whom he or she
became acquainted during his or her employment with the Company, either for his or her own
competing business or for the competing business of any other person or entity, or (b) solicit or
take away, or attempt to solicit or take away, any employees of the Company, either

3

 

for his or her
own competing business or for the competing business of any other person or entity. However, this
Section 3 shall not be deemed to restrict Employee’s use of general or trade advertising whether
for himself or for others.

4. REMEDIES. Employee agrees that money damages would be an inadequate remedy
for any breach of the promises set forth in this Agreement. Accordingly, Employee agrees that if
he or she breaches this Agreement, or threatens to do so, in addition to all other remedies the
Company may have under the Uniform Trade Secrets Act or otherwise, the Company shall be entitled to
injunctions or other appropriate orders to restrain any such breach without showing or proving any
actual damage to the Company.

5. ADDITIONAL TERMS

     5.1 Expenses. In the event of any action at law or in equity between the parties
hereto to enforce the provisions of this Agreement, the unsuccessful party shall pay to the other
all costs and expenses so incurred, including attorney’s fees.

     5.2 Assignment. This Agreement is not assignable by Employee, by operation of law or
otherwise, without the prior written consent the Company. This Agreement shall be binding upon
Employee’s heirs, executors, administrators, other legal representatives and permitted assigns and
is for the benefit of the Company, its successors, assigns and affiliates.

     5.3 Severability. If any provision of this Agreement may be unenforceable for any
reason, it shall be interpreted, to the extent possible, to enhance its enforceability in order to
achieve the intent of the parties to this Agreement. Nonetheless, the invalidity of any provision
of this Agreement as applied to certain circumstances or any other provision of this Agreement.

     5.4 Governing Law. This Agreement shall be constructed in accordance with and
governed by the laws of the State of California.

     5.5 Entire Agreement. This Agreement expresses the entire understanding of the
parties with respect to the subject matter hereof, supersedes and terminates any prior oral or
written agreement with respect to such subject matter and shall survive termination of Employee’s
employment.

     5.6 Counterparts. This agreement may be signed in two or more counterparts, each of
which shall be deemed an original and all of which together shall constitute on in the same
document.

     5.7 Notices. All notices hereunder shall be in writing and shall be deemed to have
been given when delivered personally or mailed by certified mail, return receipt requested, to the
other party at the address set forth below such party’s signature hereto, or at such other address
as may be requested for such purpose by notice duly given hereunder.

     5.8 Confirmation. Employee will confirm in writing his or her obligation under this
Agreement at the end of his or her employment.

4

 

     The parties to this Agreement hereby accept and agree to all of the above terms and
acknowledge receipt of a copy of this Agreement.

	 	 	 
	@Road, Inc.
	 	 
	 
	 	 
	By:                     /s/ Krish Panu                                        

	 	                    /s/ Martin Knestrick                                        
	

	 	(Employee Signature)
	 
	 	 
	Name:                     Krish Panu                                        

	 	                    Martin Knestrick                                             
	

	 	(Employee Name, Typed or Printed)
	 
	 	 
	Title:                     President                                            

	 	                        124 Red Hill                                                 
	

	 	(Employee Address)
	

	 	                    Tiburon, CA 94920                                          
	 
	 	 
	

	 	Date:                     15 December 2004                                  

5

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