Document:

exv4w03

 

Exhibit 4.03

 

Registration Rights Agreement

Dated as of June 16, 2006

By and among

Symantec Corporation,

Citigroup Global Markets, Inc.,

Morgan Stanley & Co. Incorporated

and

UBS Securities LLC

 

 

 

REGISTRATION RIGHTS AGREEMENT

     This Registration Rights Agreement (the “Agreement”) is made and entered into this
16th day of June, 2006, among Symantec Corporation, a Delaware corporation (the “Company”),
and Citigroup Global Markets, Inc., (“Citigroup”), Morgan Stanley & Co. Incorporated
(“Morgan Stanley”) and UBS Securities LLC (“UBS”), acting on behalf of the several
parties named in Schedule 1 to the Purchase Agreement (as defined below) (collectively, the
“Initial Purchasers”).

     This Agreement is made pursuant to the Purchase Agreement, dated June 12, 2006, among the
Company, Citigroup, Morgan Stanley and UBS, as representatives for the Initial Purchasers (the
“Purchase Agreement”), which provides for the sale by the Company to the Initial Purchasers
of (i) $1,000,000,000 aggregate principal amount of the Company’s 0.75% Convertible Senior Notes
due 2011 (the “2011 Notes”) and (ii) $1,000,000,000 aggregate principal amount of the
Company’s 1.00% Convertible Senior Notes due 2013 (the “2013 Notes,” and together with the
2011 Notes, the “Notes”). The Notes together with the shares of Common Stock (as defined
below) into which the Notes are convertible are referred to herein as the “Securities”). In
order to induce the Initial Purchasers to enter into the Purchase Agreement, the Company has agreed
to provide the registration rights set forth in this Agreement. The execution of this Agreement is
a condition to the closing under the Purchase Agreement.

     In consideration of the foregoing, the parties hereto agree as follows:

	1.	 	Definitions.

     As used in this Agreement, the following capitalized defined terms shall have the following
meanings:

     “1933 Act” shall mean the Securities Act of 1933, as amended.

     “1934 Act” shall mean the Securities Exchange Act of l934, as amended.

     “1939 Act” shall mean the Trust Indenture Act of 1939, as amended.

     “Additional Interest” shall have the meaning set forth in Section 2.4.

     “Automatic Shelf Registration Statement” shall have the meaning set forth in
Rule 405 of the 1933 Act.

     “Business Day” shall mean any calendar day on which the New York Stock
Exchange, Nasdaq and Securities and Exchange Commission are open for trading or business, as
the case may be.

     “Closing Date” shall have the meaning given to it in the Purchase Agreement.

     “Common Stock” shall mean any shares of common stock, $0.01 par value, of the
Company and any other shares of common stock as may constitute “Common Stock” for purposes
of the Indentures.

     “Company” shall have the meaning set forth in the preamble and shall also
include the Company’s successors.

 

 

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     “Depositary” shall mean The Depository Trust Company and its successors or
assigns, or any other depositary appointed by the Company, provided, however, that such
appointed depositary must have an address in the Borough of Manhattan, in the City of New
York, unless no such depositary is available.

     “Effectiveness Period” shall have the meaning set forth in Section 2.1(b).

     “Final Memorandum” shall mean the final offering memorandum dated June 12,
2006.

     “Free Writing Prospectus” shall have the meaning set forth in Rule 405 of the
1933 Act.

     “Holder” shall mean any Initial Purchaser, for so long as it owns any
Registrable Securities, and each of its successors, assigns and direct and indirect
transferees who become registered owners of Registrable Securities under the Indentures.

     “Indentures” shall mean, collectively, the Indenture relating to the 2011
Notes, dated as of the date hereof, between the Company and U.S. Bank National Association,
as Trustee, as the same may be amended, supplemented, waived or otherwise modified from time
to time in accordance with the terms thereof, and the Indenture relating to the 2013 Notes,
dated as of the date hereof, between the Company and U.S. Bank National Association, as
Trustee, as the same may be amended, supplemented, waived or otherwise modified from time to
time in accordance with the terms thereof.

     “Initial Purchasers” shall have the meaning set forth in the preamble.

     “Issuer Free Writing Prospectus” shall have the meaning set forth in Rule 433
of the 1933 Act.

     “Majority Holders” shall mean Holders holding over 50% of the aggregate
principal amount of the Notes outstanding; provided that, for the purpose of this
definition, a holder of shares of Common Stock into which the Notes were converted shall be
deemed to hold an aggregate principal amount of the Notes (in addition to the principal
amount of Notes held by such holder) equal to the product of (A) the quotient of (x) the
number of such shares of Common Stock held by such holder and (y) the conversion rate (as
expressed in the number of shares of Common Stock issuable per $1,000 principal amount of
the Notes) in effect at the time of the conversion of the Notes into such shares of Common
Stock as determined in accordance with the Indenture and (B) $1,000; provided, that whenever
the consent or approval of the Majority Holders or of a specified percentage of the Holders
of Registrable Securities is required hereunder, Notes, or Common Stock into which the Notes
were converted, held by the Company or any Affiliate (as defined in the Indentures) of the
Company shall be disregarded in determining whether such consent or approval was given by
the Majority Holders or such specified percentage of the Holders of Registrable Securities.

     “Person” shall mean an individual, partnership (general or limited),
corporation, limited liability company, trust, unincorporated organization or other entity,
or a government or agency or political subdivision thereof.

     “Prospectus” shall mean the prospectus relating to the Securities included in a
Shelf Registration Statement, including any preliminary prospectus, and any such prospectus
as amended or supplemented by any prospectus supplement, including any such prospectus
supplement with respect to the terms of the offering of any portion of the Registrable
Securities

 

 

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covered by a Shelf Registration Statement, and by all other amendments and supplements
to a prospectus, including post-effective amendments, and in each case including all
materials incorporated by reference therein.

     “Purchase Agreement” shall have the meaning set forth in the preamble.

     “Registrable Securities” shall mean all or any of the Securities; provided,
however, that any such Securities shall cease to be Registrable Securities on the second
anniversary of the Closing Date or, if earlier, when (i) a Shelf Registration Statement with
respect to such Securities shall have become effective under the 1933 Act and such
Securities shall have been sold or transferred pursuant to such Shelf Registration
Statement, (ii) such Securities have been or may be sold or transferred to the public
pursuant to Rule 144 (or any similar provision then in force, including Rule 144(k)) under
the 1933 Act, or (iii) such Securities shall have ceased to be outstanding.

     “Registration Default” shall have the meaning set forth in Section 2.4.

     “Registration Expenses” shall mean any and all expenses incident to performance
of or compliance by the Company with this Agreement, including without limitation: (i) all
SEC or National Association of Securities Dealers, Inc. (the “NASD”) registration
and filing fees, including, if applicable, the fees and expenses of any “qualified
independent underwriter” (and its counsel) that is required to be retained by any holder of
Registrable Securities in accordance with the rules and regulations of the NASD, (ii) all
fees and expenses incurred in connection with compliance with state securities or blue sky
laws and compliance with the rules of the NASD (including reasonable fees and disbursements
of counsel for any underwriters or Holders in connection with blue sky qualification of any
of the Registrable Securities and any filings with the NASD), (iii) all expenses of the
Company in preparing or assisting in preparing, word processing, printing and distributing
any Shelf Registration Statement, any Prospectus, any amendments or supplements thereto, any
securities sales agreements and other documents relating to the performance of and
compliance with this Agreement, (iv) all fees and expenses incurred in connection with the
listing, if any, of any of the Registrable Securities on any securities exchange or
exchanges, (v) all rating agency fees, if any (vi) the fees and disbursements of counsel for
the Company and of the independent public accountants of the Company, including the expenses
of any special audits or “comfort” letters required by or incident to such performance and
compliance, (vii) the reasonable fees and expenses of the Trustee, and any escrow agent or
custodian, and (viii) the reasonable fees and expenses (not to exceed in the aggregate
$10,000) of a single counsel to the Holders in connection with the Shelf Registration
Statement, which counsel shall be selected by the Majority Holders, but excluding any
underwriting discounts and commissions and transfer taxes, if any, relating to the sale or
disposition of Registrable Securities by a Holder and, except as provided under clause
(viii) above, all expenses and fees for all counsel and other professionals representing the
Holders.

     “SEC” shall mean the Securities and Exchange Commission or any successor agency
or government body performing the functions currently performed by the United States
Securities and Exchange Commission.

     “Securities” shall have the meaning set forth in the preamble.

     “Shelf Effectiveness Deadline” shall have the meaning set forth in Section
2.1(a).

     “Shelf Registration” shall mean a registration effected pursuant to Section
2.1.

 

 

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     “Shelf Registration Statement” shall mean a “shelf” registration statement of
the Company pursuant to the provisions of Section 2.1 of this Agreement which covers all of
the Registrable Securities on an appropriate form under Rule 415 under the 1933 Act, or any
similar rule that may be adopted by the SEC, and all amendments and supplements to such
registration statement, including post-effective amendments, in each case including the
Prospectus contained therein, all exhibits thereto and all materials incorporated by
reference therein; provided, however, that a registration statement shall not be deemed a
Shelf Registration Statement until such time as it includes a Prospectus relating to the
Securities.

     “Suspension Period” shall have the meaning set forth in Section 2.5.

     “Trustee” shall mean the trustee with respect to the Securities under the
Indentures.

     “Underwriter” shall mean an underwriter, as defined in the 1933 Act and the
rules and regulations thereunder, of the Securities in connection with an offering thereof
under a Shelf Registration Statement.

     “Well-Known Seasoned Issuer” shall have the meaning set forth in Rule 405 of
the 1933 Act.

	2.	 	Registration Under the 1933 Act.

     2.1 Shelf Registration.

     (a) The Company shall, at its cost, file with the SEC, and use its reasonable efforts
to cause to become effective, a Shelf Registration Statement relating to the offer and sale
of the Registrable Securities by the Holders that have provided the Questionnaire and the
other information pursuant to Section 2.1(c), no later than 180 days after the Closing Date
(the “Shelf Effectiveness Deadline”). If the Company is a Well-Known Seasoned Issuer
at the time of filing the Shelf Registration Statement with the SEC, such Shelf Registration
Statement shall be designated by the Company as an Automatic Shelf Registration Statement.

     (b) The Company shall, at its cost, use its reasonable efforts, subject to Section 2.5,
to keep the Shelf Registration Statement continuously effective in order to permit the
Prospectus forming part thereof to be usable by Holders until such time as all of the
Securities cease to be Registrable Securities (the “Effectiveness Period”).

     (c) Notwithstanding any other provision hereof, no Holder of Registrable Securities may
include any of its Registrable Securities in the Shelf Registration Statement pursuant to
this Agreement unless the Holder furnishes to the Company a fully completed notice and
questionnaire in the form attached as Annex A to the Final Memorandum (the
“Questionnaire”) and such other information in writing as the Company may reasonably
request in writing for use in connection with the Shelf Registration Statement or Prospectus
included therein and in any application to be filed with or under state securities laws. At
least 30 days prior to the filing of the Shelf Registration Statement, the Company will
provide notice to the Holders of its intention to file the Shelf Registration Statement;
provided, however that if the Company elects to register the Registrable Securities pursuant
to a Prospectus to a Shelf Registration Statement that has already
been declared effective, the Company will provide notice to the Holders of its
intention to file the initial Prospectus at least 30 days prior to such filing. In order to
be named as a selling securityholder in the Shelf Registration Statement or Prospectus at
the time of effectiveness of the Shelf Registration Statement or such Prospectus, as
applicable, each Holder must no later than 20

 

 

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days following notice by the Company of such
filing, furnish in writing the completed Questionnaire and such other information that the
Company may reasonably request in writing, if any, to the Company and the Company will
include the information from the completed Questionnaire and such other information, if any,
in the Shelf Registration Statement and the Prospectus, as necessary and in a manner, so
that upon effectiveness of the Shelf Registration Statement the Holder will be permitted to
deliver the Prospectus to purchasers of the Holder’s Registrable Securities. From and after
the date that the Shelf Registration Statement becomes effective, upon receipt of a
completed Questionnaire and such other information that the Company may reasonably request
in writing, if any, the Company will use its reasonable efforts to file any amendments or
supplements to the Shelf Registration Statement necessary for such Holder to be named as a
selling securityholder in the Prospectus contained therein to permit such Holder to deliver
the Prospectus to purchasers of the Holder’s Securities (subject to the Company’s right to
suspend the Shelf Registration Statement as described in Section 2.5 below); provided, that
from and after the beginning of the calendar quarter first commencing after the nine-month
anniversary of the Closing Date, the Company shall not be required to file an amendment or
supplement to add Holders for such purpose on more than one occasion per calendar quarter.
Holders that do not deliver a completed written Questionnaire and such other information, as
provided for in this Section 2.1(c), will not be named as selling securityholders in the
Prospectus. Each Holder named as a selling securityholder in the Prospectus agrees to
promptly furnish to the Company in writing all information required to be disclosed in order
to make information previously furnished to the Company by the Holder not materially
misleading and any other information regarding such Holder and the distribution of such
Holder’s Registrable Securities as the Company may from time to time reasonably request in
writing.

     (d) Each Holder agrees that if such Holder wishes to sell Registrable Securities
pursuant to a Shelf Registration Statement and related Prospectus it will do so only in
accordance with Section 2.1(c) and subject to Section 2.5. Each Holder agrees not to sell
any Registrable Securities pursuant to the Shelf Registration Statement without delivering,
or causing to be delivered, a Prospectus to the purchaser thereof and, following termination
of the Effectiveness Period, to notify the Company, within ten days of a written request by
the Company, of the amount of Registrable Securities sold pursuant to the Shelf Registration
Statement and, in the absence of a response within such period, the Company may assume that
all of such Holder’s Registrable Securities have been so sold.

     (e) The Company agrees that, unless it obtains the prior consent of the Holders of a
majority of the Registrable Securities that are registered under the Shelf Registration
Statement at such time or the consent of the managing underwriters in connection with any
underwritten offering of Registrable Securities, and each Holder agrees that, unless it
obtains the prior written consent of the Company and any such underwriters, it will not make
any offer relating to the Securities that would constitute an Issuer Free Writing
Prospectus, or that would otherwise constitute a Free Writing Prospectus required to be
filed with the SEC. The Company represents that any Issuer Free Writing Prospectus prepared
by it or authorized by it in writing for use by such Holder will not include any information
that conflicts with the information contained in the Shelf Registration Statement or the
Prospectus and, any such Issuer Free Writing Prospectus, when taken together with the
information in the Shelf Registration Statement and the Prospectus, will not include any
untrue statement of a material fact or omit to state any material fact
necessary in order to make the statements therein, in light of the circumstances under
which they were made, not misleading.

     The Company agrees to supplement or amend the Shelf Registration Statement if required by the
1933 Act or the rules and regulations thereunder or by the instructions applicable to the
registration form

 

 

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used by the Company, or to the extent the Company does not reasonably object, as
reasonably requested by the Initial Purchasers with respect to information relating to such Initial
Purchasers or by the Trustee on behalf of the Holders covered by such Shelf Registration Statement
with respect to information relating to such Holders, and to furnish to the Holders of Registrable
Securities copies of any such supplement or amendment promptly after its is used or filed with the
SEC.

     2.2 Expenses. The Company shall pay all Registration Expenses in connection with the
registration pursuant to Section 2.1. Each Holder shall pay all underwriting discounts and
commissions, agency fees, brokers commissions and transfer taxes, if any, relating to the sale or
disposition of such Holder’s Registrable Securities pursuant to the Shelf Registration Statement.

     2.3 Effectiveness. After a Shelf Registration Statement is effective, if the offering
of Registrable Securities pursuant to a Shelf Registration Statement is interfered with by any stop
order, injunction or other order or requirement of the SEC or any other governmental agency or
court, such Shelf Registration Statement will be deemed not to have been effective during the
period of such interference, until the offering of Registrable Securities pursuant to such Shelf
Registration Statement may legally resume.

     2.4  Interest. In the event that (a) a Shelf Registration Statement has not become
effective by the Shelf Effectiveness Deadline, (b) after the Shelf Registration Statement has
become effective, subject to Section 2.5, the Shelf Registration Statement fails to be effective or
usable by the Holders without being succeeded within seven business days by a post-effective
amendment or a report filed with the SEC pursuant to the 1934 Act that cures the failure to be
effective or usable or (c) the Shelf Registration Statement is unusable by the Holders for any
reason, and the number of days for which the Shelf Registration Statement shall not be usable
exceeds any Suspension Period permitted by Section 2.5 hereunder (each such event being a
“Registration Default”), additional interest, as liquidated damages (“Additional
Interest”), will accrue at a rate per annum of 0.25% of the principal amount of the Notes then
remaining, payable periodically on June 15th and December 15th each year;
provided that, in no event shall Additional Interest accrue at a rate per annum exceeding 0.25% of
the principal amount of the Notes then remaining; provided further that no Additional Interest
shall accrue after the second anniversary of the Closing Date; provided further that no Additional
Interest shall accrue under clauses (b) and (c) above with respect to any Holder that (x) does not
deliver to the Company a completed Questionnaire and such other information that the Company may
reasonably request, if any, as provided for in Section 2.1(c), and (y) is not named as a selling
securityholder in the Shelf Registration Statement. Notwithstanding the foregoing, in no event will
Additional Interest be payable in connection with a Registration Default relating to a failure to
register the Common Stock into which the Notes are convertible; for the avoidance of doubt, if none
of the Securities are registered then Additional Interest only will be payable in connection with
the Registration Default relating to the failure to register the Notes. Upon the cure of all
Registration Defaults then continuing, the accrual of Additional Interest will automatically cease
and the interest rate borne by the Securities will revert to the original interest rate at such
time. Additional Interest shall be computed based on the actual number of days elapsed in each
six-month period between payment dates in which the Shelf Registration Statement is not effective or is unusable. Holders who
have converted Securities into Common Stock will not be entitled to receive any Additional Interest
with respect to such Common Stock or the principal amount of the Notes converted.

     The Trustee shall be entitled, but shall not be obligated, on behalf of the Holders of
Registrable Securities, to seek any available remedy for the enforcement of this Agreement,
including for the payment of any Additional Interest. Notwithstanding the foregoing, the parties
agree that the sole monetary damages payable for a violation of the terms of this Agreement with
respect to which Additional Interest are expressly provided shall be such Additional Interest.
Nothing shall preclude a Holder of Registrable Securities from pursuing or obtaining specific
performance or equitable relief with regard to this

 

 

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Agreement. Each obligation to pay Additional
Interest shall be deemed to accrue from and including the day following the Registration Default to
but excluding the day on which the Registration Default is cured.

     A Registration Default under clause (a) above shall be cured on the date that the Shelf
Registration Statement becomes effective. A Registration Default under clauses (b) or (c) above
shall be cured on the date an amended Shelf Registration Statement becomes effective or the Company
otherwise declares the Shelf Registration Statement and the Prospectus useable, as applicable.

     The parties agree that the Additional Interest provided for in this Section 2.4 constitutes a
reasonable estimate of the damages that may be incurred by Holders of Registrable Securities and
does not constitute a penalty.

     2.5 Suspension. Notwithstanding any other provision hereof, the Company may suspend
the use of any Prospectus, without incurring or accruing any obligation to pay Additional Interest
pursuant to Section 2.4, for a period not to exceed 90 consecutive calendar days or an aggregate of
120 calendar days in any twelve-month period (each, a “Suspension Period”), if 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 plans for a registered public
offering, an acquisition or other proposed or pending corporate developments and similar events or
because of filings with the SEC, it is in the best interests of the Company to suspend such use,
and prior to suspending such use the Company provides the Holders with written notice of such
suspension, which notice need not specify the nature of the event giving rise to such suspension
(and, upon receipt of such notice, each Holder agrees not to sell any Registrable Securities
pursuant to the Shelf Registration Statement until the earlier of such Holder is advised in writing
that the Prospectus may be used or the 90-day or 120-day limits described above have been reached).
Each Holder shall keep confidential any communications received by it from the Company regarding
the suspension of the use of the Prospectus (including, without limitation, the fact of the
suspension), except as required by applicable law.

	3.	 	Registration Procedures. 

     In connection with the obligations of the Company with respect to the Shelf Registration, the
Company shall:

     (a) at a reasonable time prior to filing the Shelf Registration Statement, any
Prospectus forming a part thereof, any amendment to the Shelf Registration Statement or
amendment or supplement to such Prospectus (other than amendments and supplements that do
nothing more than name Holders and provide information with respect thereto), furnish to
Citigroup, Morgan Stanley and UBS as representatives of the Initial Purchasers and one
special counsel to the Initial Purchasers copies of all such documents proposed to be filed and
use its reasonable efforts to address in each such document when so filed with the SEC such
comments as the Initial Purchasers and such special counsel to the Initial Purchasers
reasonably shall propose within three (3) Business Days of the delivery of such copies to
the Initial Purchasers and counsel to the Initial Purchasers. In addition, if any Holder
that has provided the Questionnaire and the other information required by Section 2.1(c)
shall so request in writing, a reasonable time prior to filing any such documents, the
Company shall furnish to such Holder copies of all such documents proposed to be filed and
use its reasonable efforts to reflect in each such document when so filed with the SEC such
comments as such Holder reasonably shall propose within three (3) Business Days of the
delivery of such copies to such Holder;

 

 

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     (b) prepare and file with the SEC such amendments and post-effective amendments to the
Shelf Registration Statement as may be necessary under applicable law to keep the Shelf
Registration Statement effective for the Effectiveness Period, subject to Section 2.5; and
cause each Prospectus to be supplemented by any required prospectus supplement, and as so
supplemented to be filed in compliance with Rule 424 (or any similar provision then in
force) under the 1933 Act and use reasonable efforts to comply during the Effectiveness
Period with the provisions of the 1933 Act, the 1934 Act and the rules and regulations
thereunder required to enable the disposition of all Registrable Securities covered by the
Shelf Registration Statement in accordance with the intended method or methods of
distribution (as provided to the Company in the Questionnaires) by the selling Holders
thereof;

     (c) (i) notify each Holder of Registrable Securities of the filing of a Shelf
Registration Statement or any post-effective amendment to a Shelf Registration Statement and
of when any such Shelf Registration Statement or any post-effective amendment to a Shelf
Registration Statement has become effective; (ii) during the Effectiveness Period, furnish
to each Holder of Registrable Securities that has provided the Questionnaires and the
information required by Section 2.1(c) and to each underwriter of an underwritten offering
of Registrable Securities, if any, without charge, as many copies of each Prospectus,
including each preliminary Prospectus, and any amendment or supplement thereto and such
other documents as such Holder or underwriter may reasonably request in writing, including
financial statements and schedules and, if such Holder so requests, all exhibits thereto in
connection with the sale or other disposition of the Registrable Securities; and (iii)
subject to Section 2.5 and to any notice by the Company in accordance with Section 3(e) of
the existence of any fact of the kind described in Sections 3(e)(i), (ii), (iii), (iv) and
(v), hereby consent to the use of the Prospectus or any amendment or supplement thereto by
each of the selling Holders of Registrable Securities that has provided the Questionnaire
and the other information required by Section 2.1(c) in connection with the offering and
sale of the Registrable Securities covered by such Prospectus or any amendment or supplement
thereto in the manner set forth therein;

     (d) use reasonable efforts to register or qualify or cooperate with the Holders in
connection with the registration or qualification (or exemption from such registration or
qualification) of the Registrable Securities under all applicable state securities or “blue
sky” laws of such jurisdictions as any Holder of Registrable Securities covered by a Shelf
Registration Statement and each underwriter of an underwritten offering of Registrable
Securities shall reasonably request in writing, and do any and all other acts and things
which may be reasonably necessary or advisable to enable each such Holder and underwriter to
consummate the disposition in each such jurisdiction of such Registrable Securities owned by
such Holder; provided, however, that the Company shall not be required to (i) qualify as a
foreign corporation or as a dealer in securities in any jurisdiction where it would not
otherwise be required to qualify but for
this Section 3(d), or (ii) take any action which would subject it to general service of
process or taxation in any such jurisdiction where it is not then so subject;

     (e) notify as promptly as reasonably practicable each Holder of Registrable Securities
under a Shelf Registration that has provided the Questionnaire and the other information
required by Section 2.1(c) and, if requested by such Holder, confirm such advice in writing
promptly (i) of any request, following the effectiveness of the Shelf Registration Statement
under the 1933 Act, by the SEC or any state securities authority for post-effective
amendments and supplements to a Shelf Registration Statement and Prospectus or for
additional information after the Shelf Registration Statement has become effective, (ii) of
the issuance by the SEC or any state securities authority of any stop order suspending the
effectiveness of a Shelf Registration Statement or the initiation of any proceedings for
that purpose, (iii) of the occurrence

 

 

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(but not the nature of or details concerning) of any
event or the discovery of any facts during the period a Shelf Registration Statement is
effective which makes any statement made in such Shelf Registration Statement or the related
Prospectus untrue in any material respect or which requires the making of any changes in
such Shelf Registration Statement or Prospectus in order to make the statements therein not
misleading, (provided, however, that no notice by the Company shall be required pursuant to
this clause (iii) in the event that the Company either promptly files a Prospectus
supplement to update the Prospectus or a Form 8-K or other appropriate 1934 Act report that
is incorporated by reference into the Shelf Registration Statement, which, in either case,
contains the requisite information that results in such Shelf Registration Statement no
longer containing any untrue statement of material fact or omitting to state a material fact
necessary to make the statements therein not misleading), (iv) of the receipt by the Company
of any notification with respect to the suspension of the qualification of the Registrable
Securities for sale in any jurisdiction or the initiation or threatening of any proceeding
for such purpose and (v) of any determination by the Company that a post-effective amendment
to such Shelf Registration Statement would be required by applicable law;

     (f) as promptly as reasonably practicable furnish to Citigroup, Morgan Stanley and UBS
as representatives of the Initial Purchasers and one special counsel to the Initial
Purchasers on behalf of the Holders (i) copies of any comment letters received from the SEC
with respect to a Shelf Registration Statement or any documents incorporated therein and
(ii) any other request by the SEC or any state securities authority for amendments or
supplements to a Shelf Registration Statement and Prospectus or for additional information
with respect to the Shelf Registration Statement and Prospectus;

     (g) use reasonable efforts to obtain the withdrawal of any order suspending the
effectiveness of a Shelf Registration Statement at the earliest practicable moment or, if
any such order or suspension is made effective during any Suspension Period, at the earliest
practicable moment after the Suspension Period;

     (h) upon the occurrence of any event or the discovery of any facts, each as
contemplated by Sections 3(e)(i), (ii), (iii), (iv) and (v), as promptly as practicable
after the occurrence of such an event, use reasonable efforts to prepare a supplement or
post-effective amendment to the Shelf Registration Statement or the related Prospectus or
any document incorporated therein by reference or file any other required document so that,
as thereafter delivered to the purchasers of the Registrable Securities, such Prospectus
will not contain at the time of such delivery any untrue statement of a material fact or
omit to state a material fact necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading. At such time as such public
disclosure is otherwise made or the Company determines that such disclosure is not
necessary, in each case to correct any misstatement of a
material fact or to include any omitted material fact, the Company agrees promptly to
notify each Holder that has provided the Questionnaire and the other information required by
Section 2.1(c) of such determination and to furnish each Holder such number of copies of the
Prospectus as amended or supplemented, as such Holder may reasonably request;

     (i) (i) use reasonable efforts to cause the Indentures to be qualified under the 1939
Act in connection with the registration of the Registrable Securities, (ii) cooperate with
the Trustee and the Holders to effect such changes to the Indentures as may be required for
the Indentures to be so qualified in accordance with the terms of the 1939 Act, and (iii)
execute, and use reasonable efforts to cause the Trustee to execute, all documents as may be
required to effect such changes, and all other forms and documents required to be filed with
the SEC to enable the Indentures to be so qualified in a timely manner;

 

 

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     (j) subject to Sections 2.1(a) and 2.1(b), enter into such customary agreements (on
terms reasonably acceptable to the Company) and take all other customary and appropriate
actions in order to expedite or facilitate the disposition of the Registrable Securities by
the Holders thereof, including, but not limited to:

     (i) obtaining opinions of counsel to the Company and updates thereof addressed
to each selling Holder and the underwriters, if any, covering the matters set forth
in the opinion of counsel to the Company delivered at the Closing Date;

     (ii) obtaining “comfort” letters and updates thereof from the Company’s
independent certified public accountants (and, if necessary, any other independent
certified public accountants of any subsidiary of the Company or of any business
acquired by the Company for which financial statements are, or are required to be,
included in the Shelf Registration Statement) addressed to the underwriters, if any,
and use reasonable efforts to have such letter addressed to the selling Holders of
Registrable Securities (to the extent consistent with Statement on Auditing
Standards No. 72 of the American Institute of Certified Public Accounts), such
letters substantially in the form and covering the matters covered in the comfort
letter delivered on the Closing Date;

     (iii) if an underwriting agreement is entered into, causing the same to set
forth indemnification provisions and procedures substantially equivalent to the
indemnification provisions and procedures set forth in Section 4 with respect to the
underwriters and all other parties to be indemnified pursuant to said Section or, at
the request of any underwriters, in the form customarily provided to such
underwriters in similar types of transactions; and

     (iv) delivering such documents and certificates as may be reasonably requested
and as are customarily delivered in similar offerings to the Holders of a majority
in principal amount of the Registrable Securities being sold and the managing
underwriters, if any.

The above paragraph (j) shall be done only in connection with any underwritten offering of
Registrable Securities using such Shelf Registration Statement pursuant to an underwriting or
similar agreement as and to the extent required thereunder, and as reasonably requested by any of
the parties thereto; provided, however, that in no event will an underwritten offering of
Registrable Securities be made without the prior written agreement of the Company;

     (k) if reasonably requested in connection with a disposition of Registrable Securities,
make reasonably available for inspection during normal business hours by representatives of
the Holders of the Registrable Securities, any underwriters participating in any disposition
pursuant to a Shelf Registration Statement and any counsel or accountant retained by any of
the foregoing, all relevant financial and other records, pertinent corporate documents and
properties of the Company reasonably requested by any such persons, and cause the
appropriate officers, directors and designated employees of the Company to make reasonably
available for inspection during normal business hours all relevant information reasonably
requested by any such representative, underwriter, counsel or accountant in connection with
a Shelf Registration Statement, and make such representatives of the Company available for
discussion of such documents as shall be reasonably requested by the Initial Purchasers, in
each case as is customary for “due diligence” investigations; provided that such persons
shall first agree in writing with the Company that any information that is reasonably
designated by the Company as confidential at the time of delivery shall be kept confidential
by such persons and shall be used solely for the purposes of exercising

 

 

11

rights under this
Agreement and such person shall not engage in trading any securities of the Company until
such material non-public information becomes properly publicly available, unless (i)
disclosure of such information is required by court or administrative order or is necessary
to respond to inquires of regulatory authorities, (ii) disclosure of such information is
required by law (including any disclosure requirements pursuant to federal securities laws
in connection with the filing of any Shelf Registration Statement or the use of any
Prospectus referred to in this Agreement upon a customary opinion of counsel for such
persons delivered and reasonably satisfactory to the Company), (iii) such information
becomes generally available to the public other than as a result of a disclosure or failure
to safeguard by any such person, or (iv) such information becomes available to any such
person from a source other than the Company and such source is not bound by a
confidentiality agreement or confidentiality obligations or duties; provided further, that,
the foregoing inspection and information gathering shall, to the greatest extent possible,
be coordinated on behalf of all the Holders and the other parties entitled thereto by
special counsel to the Holders;

The above paragraph (k) shall be done only in connection with any underwritten offering of
Registrable Securities using such Shelf Registration Statement pursuant to an underwriting or
similar agreement as and to the extent required thereunder, and as reasonably requested by any of
the parties thereto; provided, however, that in no event will an underwritten offering of
Registrable Securities be made without the prior written agreement of the Company;

     (l) use its commercially reasonable efforts to cause all Registrable Securities to be
listed on any securities exchange or inter-dealer quotation system on which similar
securities issued by the Company are then listed if requested by the Majority Holders, or if
requested by the underwriter or underwriters of an underwritten offering of Registrable
Securities, if any;

     (m) make generally available to its security holders, as soon as reasonably
practicable, earning statements covering at least 12 months (which need not be audited)
satisfying the provisions of Section 11(a) of the 1933 Act and Rule 158 thereunder; and

     (n) make a reasonable effort to provide such information as is required for any filings
required to be made with the National Association of Securities Dealers, Inc.

     Without limiting the provisions of Section 2.1(c), the Company may (as a condition to such
Holder’s participation in the Shelf Registration) require each Holder of Registrable Securities to
furnish to the Company such information regarding the Holder and the proposed distribution by such
Holder of such Registrable Securities as the Company may from time to time reasonably request in
writing. Each Holder agrees promptly to furnish to the Company in writing all information required to be disclosed
in order to make the information previously furnished to the Company by such Holder not misleading,
any other information regarding such Holder and the distribution of such Registrable Securities as
may be required to be disclosed in the Prospectus or Shelf Registration Statement under applicable
law or pursuant to SEC comments and any information otherwise reasonably required by the Company to
comply with applicable law or regulations.

     Each Holder agrees that, upon receipt of any notice from the Company of the happening of any
event or the discovery of any facts, each of the kind described in Section 3(e)(i), (ii), (iii),
(iv) and (v), such Holder will forthwith discontinue disposition of Registrable Securities pursuant
to the Prospectus included in the Shelf Registration Statement until such Holder’s receipt of the
copies of the supplemented or amended Prospectus contemplated by Section 3(h) or written notice
from the Company that the Shelf Registration Statement is again effective and no amendment or
supplement is needed, and, if so directed by the Company, such Holder will deliver to the Company
(at the Company’s expense) all copies in such

 

 

12

Holder’s possession, other than permanent file copies
then in such Holder’s possession, of the Prospectus covering such Registrable Securities at the
time of receipt of such notice.

     If any of the Registrable Securities covered by any Shelf Registration Statement are to be
sold in an underwritten offering, the underwriter or underwriters and manager or managers that will
manage such offering will be selected by the Majority Holders of such Registrable Securities
included in such offering and shall be acceptable to the Company. No Holder of Registrable
Securities may participate in any underwritten registration hereunder unless such Holder (a) agrees
to sell such Holder’s Registrable Securities on the basis provided in any underwriting arrangements
approved by the persons entitled hereunder to approve such arrangements and (b) completes and
executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other
documents required under the terms of such underwriting arrangements.

	4.	 	Indemnification; Contribution.

     (a) Indemnification by the Company. The Company agrees to indemnify and hold harmless
each Initial Purchaser, each Holder who provided the Questionnaire and the other information
to the Company in accordance with Section 2.1(c), each Underwriter and each of their
respective directors, officers and employees and agents and each Person, if any, who
controls such Initial Purchaser, Holder or Underwriter within the meaning of Section 15 of
the 1933 Act or Section 20 of the 1934 Act (each of the foregoing is referred to herein as
an “indemnified party”) (i) against any loss, claim, damage, liability or expense, as
incurred, to which such indemnified party may become subject, insofar as such loss, claim,
damage, liability or expense (or actions in respect thereof as contemplated below) arises
out of or is based upon (x) any untrue statement or alleged untrue statement of a material
fact contained in the Shelf Registration Statement (or any amendment or supplement thereto),
including all documents incorporated therein by reference, or the omission or alleged
omission therefrom of a material fact, in each case, necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not
misleading, (y) any untrue statement or alleged untrue statement of a material fact
contained in any preliminary prospectus or the Prospectus (or any amendment or supplement
thereto), including all documents incorporated therein by reference, or the omission or
alleged omission therefrom of a material fact, in each case, necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not
misleading or (z) any untrue statement or alleged untrue statement of a material fact
contained in any Issuer Free Writing Prospectus prepared by it or authorized by it in
writing for use by such Holder (or any amendment or supplement thereto), or the
omission or alleged omission therefrom of a material fact, in each case, necessary in order
to make the statements therein, in the light of the circumstances under which they were
made, not misleading; (ii) against any and all loss, liability, claim, damage and expense
whatsoever, as incurred, to the extent of the aggregate amount paid in settlement of any
litigation, or any investigation or proceeding by any governmental agency or body, commenced
or threatened, or of any claim whatsoever based upon any such untrue statement or omission,
or any such alleged untrue statement or omission; provided that (subject to Section 4(e)
below) any such settlement is effected with the written consent of the Company; and (iii)
against any and all reasonable out-of-pocket expense whatsoever, as incurred (including the
reasonable fees and disbursements of counsel), reasonably incurred in investigating,
preparing or defending against any litigation, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, or any claim whatsoever based upon any
such untrue statement or omission, or any such alleged untrue statement or omission, to the
extent that any such expense is not paid under subparagraph (i) or (ii) above; and to
reimburse each indemnified party for any and all expenses (including the fees and
disbursements of counsel chosen by the indemnified parties) as such expenses are

 

 

13

reasonably
incurred by such indemnified party in connection with investigating, defending, settling,
compromising or paying any such loss, claim, damage, liability, expense or action; provided,
however, that the foregoing indemnity agreement shall not apply to any loss, claim, damage,
liability or expense to the extent, but only to the extent, arising out of or based upon any
untrue statement or alleged untrue statement or omission or alleged omission made in
reliance upon and in conformity with written information furnished to the Company by any
indemnified party expressly for use in the Shelf Registration Statement (or any amendment or
supplement thereto), any preliminary prospectus or the Prospectus (or any amendment or
supplement thereto) or any Issuer Free Writing Prospectus (or any amendment or supplement
thereto). The indemnity agreement set forth in this Section 4(a) shall be in addition to any
liabilities that the Company may otherwise have.

     (b) Indemnification by the Holders. Each Holder who has provided the Questionnaire and
the other information to the Company in accordance with Section 2.1(c), severally, but not
jointly, agrees to indemnify and hold harmless the Company, each Initial Purchaser, each
Underwriter and the other selling Holders who have provided the Questionnaire and the other
information to the Company in accordance with Section 2.1(c), and each of their respective
directors, officers, employees and agents and each Person, if any, who controls the Company,
any Initial Purchaser, any Underwriter or any other selling Holder within the meaning of
Section 15 of the 1933 Act or Section 20 of the 1934 Act, against any and all loss,
liability, claim, damage and expense described in the indemnity contained in Section 4(a),
as incurred, but only with respect to untrue statements or omissions, or alleged untrue
statements or omissions, made in the Shelf Registration Statement (or any amendment
thereto), any preliminary prospectus or the Prospectus included therein (or any amendment or
supplement thereto) or any Issuer Free Writing Prospectus (or any amendment or supplement
thereto) in reliance upon and in conformity with written information with respect to such
Holder furnished to the Company by or on behalf of such Holder expressly for use in the
Shelf Registration Statement (or any amendment thereto), such preliminary prospectus or the
Prospectus (or any amendment or supplement thereto) or any Issuer Free Writing Prospectus
(or any amendment or supplement thereto).

     (c) Indemnification by the Initial Purchasers. Each Initial Purchaser, severally, but
not jointly, agrees to indemnify and hold harmless the Company, the Holders who have
provided the Questionnaire and the other information to the Company in accordance with
Section 2.1(c), and each of their respective directors, officers, employees and agents, and
each Person, if any, who controls the Company or any such Holder within the meaning of
either Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim,
damage and expense described in the indemnity contained in Section 4(a), as incurred, but
only with respect to untrue statements or omissions, or alleged untrue statements or
omissions, made in the Shelf Registration Statement (or any amendment thereto), any
preliminary prospectus or the Prospectus (or any amendment or supplement thereto) or any
Issuer Free Writing Prospectus (or any amendment or supplement thereto) in reliance upon and
in conformity with written information furnished to the Company by or on behalf of the
Initial Purchasers expressly for use in the Shelf Registration Statement (or any amendment
thereto) or any preliminary prospectus or the Prospectus (or any amendment or supplement
thereto) or any Issuer Free Writing Prospectus (or any amendment or supplement thereto).

     (d) Notifications and Other Indemnification Procedures. Promptly after receipt by an
indemnified party under this Section 4 of notice of the commencement of any action, such
indemnified party will, if a claim in respect thereof is to be made against an indemnifying
party under this Section 4, notify the indemnifying party in writing of the commencement
thereof, but the failure to so notify the indemnifying party (1) will not relieve it from
liability under paragraph

 

 

14

(a), (b) or (c) above unless and to the extent it did not
otherwise learn of such action and such failure results in the forfeiture by the
indemnifying party of substantial rights and defenses and (2) will not, in any event,
relieve the indemnifying party from any obligations to any indemnified party other than the
indemnification obligation provided in paragraph (a), (b) or (c) above. In case any such
action is brought against any indemnified party and such indemnified party seeks or intends
to seek indemnity from an indemnifying party, the indemnifying party will be entitled to
participate in, and, to the extent that it shall elect, jointly with all other indemnifying
parties similarly notified, by written notice delivered to the indemnified party promptly
after receiving the aforesaid notice from such indemnified party, to assume the defense
thereof with counsel reasonably satisfactory to such indemnified party; provided, however,
if the defendants in any such action include both the indemnified party and the indemnifying
party and the indemnified party shall have reasonably concluded that a conflict may arise
between the positions of the indemnifying party and the indemnified party in conducting the
defense of any such action or that there may be legal defenses available to it and/or other
indemnified parties that are different from or additional to those available to the
indemnifying party, the indemnified party or parties shall have the right to select separate
counsel to assume such legal defenses and to otherwise participate in the defense of such
action on behalf of such indemnified party or parties. Upon receipt of notice from the
indemnifying party to such indemnified party of such indemnifying party’s election so to
assume the defense of such action and approval by the indemnified party of counsel, the
indemnifying party will not be liable to such indemnified party under this Section 4 for any
legal or other expenses subsequently incurred by such indemnified party in connection with
the defense thereof unless (i) the indemnified party shall have employed separate counsel in
accordance with the proviso to the preceding sentence (it being understood, however, that
the indemnifying party shall not be liable for the expenses of more than one separate
counsel (other than local counsel), reasonably approved by the indemnifying party,
representing the indemnified parties who are parties to such action) or (ii) the
indemnifying party shall not have employed counsel satisfactory to the indemnified party to
represent the indemnified party within a reasonable time after notice of commencement of the
action, in each of which cases the fees and expenses of counsel shall be at the expense of
the indemnifying party.

     (e) Settlements. The indemnifying party under this Section 4 shall not be liable for
any settlement of any proceeding effected without its written consent, which shall not be
withheld unreasonably, but if settled with such consent or if there is a final judgment for
the plaintiff, the indemnifying party agrees to indemnify the indemnified party against any
loss, claim, damage, liability or expense by reason of such settlement or judgment.
Notwithstanding the foregoing
sentence, if at any time an indemnified party shall have requested an indemnifying
party to reimburse the indemnified party for fees and expenses of counsel as contemplated by
Section 4(d) hereof, the indemnifying party agrees that it shall be liable for any
settlement of any proceeding effected without its written consent if (i) such settlement is
entered into more than 30 days after receipt by such indemnifying party of the aforesaid
request, (ii) such indemnifying party shall have received notice of the terms of such
settlement at least 45 days prior to such settlement being entered into and (iii) such
indemnifying party shall not have reimbursed the indemnified party in accordance with such
request prior to the date of such settlement. No indemnifying party shall, without the prior
written consent of the indemnified party, effect any settlement, compromise or consent to
the entry of judgment in any pending or threatened action, suit or proceeding in respect of
which any indemnified party is or could have been a party and indemnity was or could have
been sought hereunder by such indemnified party, unless such settlement, compromise or
consent (x) includes an unconditional release of such indemnified party from all liability
on claims that are the subject matter of such action, suit or proceeding and (y) 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 party.

 

 

15

     (f) If the indemnification provided for in this Section 4 is for any reason unavailable
to or insufficient to hold harmless an indemnified party in respect of any losses,
liabilities, claims, damages or expenses referred to therein, then each indemnifying party
shall contribute to the aggregate amount of such losses, liabilities, claims, damages and
expenses incurred by such indemnified party, as incurred, in such proportion as is
appropriate to reflect the relative fault of the Company on the one hand and the Holders and
the Initial Purchasers on the other hand in connection with the statements or omissions
which resulted in such losses, liabilities, claims, damages or expenses, as well as any
other relevant equitable considerations.

     The relative fault of the indemnifying parties on the one hand and the indemnified parties and
the Initial Purchasers on the other hand shall be determined by reference to, among other things,
whether any such untrue or alleged untrue statement of a material fact or omission or alleged
omission to state a material fact relates to information supplied by the Company, or by the Holders
or the Initial Purchasers and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission.

     The Company, the Holders and the Initial Purchasers agree that it would not be just and
equitable if contribution pursuant to this Section 4 were determined by pro rata allocation or by
any other method of allocation which does not take account of the equitable considerations referred
to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and
expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed
to include any reasonable out-of-pocket legal or other expenses reasonably incurred by such
indemnified party in investigating, preparing or defending against any litigation, or any
investigation or proceeding by any governmental agency or body, commenced or threatened, or any
claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged
omission.

     Notwithstanding the provisions of this Section 4, no Initial Purchaser or Holder shall be
required to indemnify or contribute any amount in excess of the amount by which the total price at
which the Securities sold by such Initial Purchaser or Holder exceeds the amount of any damages
which such Initial Purchaser or Holder has otherwise been required to pay by reason of such untrue
or alleged untrue statement or omission or alleged omission.

     No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
1933 Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent
misrepresentation.

     For purposes of this Section 4, each director, officer, employee and agent of any Initial
Purchaser or Holder, or each Person, if any, who controls any Initial Purchaser or Holder within
the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights
to contribution as such Initial Purchaser or Holder, and each director, officer, employee or agent
of the Company, and each Person, if any, who controls the Company within the meaning of Section 15
of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the
Company.

	5.	 	Miscellaneous.

     5.1 No Inconsistent Agreements. The Company has not entered into and the Company will
not after the date of this Agreement enter into any agreement with respect to its securities which
conflicts with the rights granted to the Holders of Registrable Securities in this Agreement. The
rights granted to the Holders hereunder do not for the term of this Agreement conflict with the
rights granted to the holders of the Company’s other issued and outstanding securities under any
such agreements.

 

 

16

     5.2 Amendments and Waivers. The provisions of this Agreement may not be amended,
qualified, modified or supplemented, and waivers or consents to departures from the provisions
hereof may not be given, unless the Company has obtained the written consent of the Majority
Holders; provided that, with respect to any matter that directly or indirectly affects the rights
of any Initial Purchaser hereunder, the Company shall obtain the written consent of each such
Initial Purchaser against which such amendment, qualification, supplement, waiver or consent is to
be effective; provided, further, that no amendment, qualification, supplement, waiver or consent
with respect to Sections 2.4 and 4 hereof shall be effective as against any Holder of Registered
Securities unless consented to in writing by such Holder; and provided, further, that the
provisions of this Section 5.2 may not be amended, qualified, modified or supplemented, and waivers
or consents to departures from the provisions hereof may not be given, unless the Company has
obtained the written consent of the Initial Purchasers and each Holder, except that any provision
of this Section 5.2 which provides that an amendment to this Agreement may be made upon the written
consent of the Majority Holders may itself be amended, qualified, modified or supplemented, and
waivers or consents to departures from any such provision may be given if the Company obtains the
written consent of the Majority Holders. Notwithstanding the foregoing (except the foregoing
provisos), (i) a waiver or consent to departure from the provisions hereof with respect to a matter
that relates exclusively to the rights of Holders whose Registrable Securities are being sold
pursuant to a Shelf Registration Statement and that does not directly or indirectly affect the
rights of other Holders may be given by the Majority Holders, determined on the basis of the
Registrable Securities being sold rather than registered under such Shelf Registration Statement
and (ii) this Agreement may be amended by a written agreement between the Company and Citigroup,
Morgan Stanley and UBS, on behalf of the Initial Purchasers, without the consent of the Holders of
the Registrable Securities, in order to cure any ambiguity or to correct or supplement any
provision contained herein, provided that no such amendment shall adversely affect the interest of
the Holders of Registrable Securities. Each Holder of Registrable Securities outstanding at the
time of any amendment, modification, waiver or consent pursuant to this Section 5.2, shall be bound
by such amendment, modification, waiver or consent, whether or not any notice or writing
indicating such amendment, modification, waiver or consent is delivered to such Holder.

     5.3 Notices. All notices, consents and other communications provided for or permitted
hereunder shall be made in writing by hand delivery, registered first-class mail, facsimile, or any
courier guaranteeing overnight delivery (a) if to a Holder, in the manner set forth in Section
12.03(b) of the applicable Indenture; and (b) if to the Company, initially at the Company’s address
set forth in the Purchase Agreement, and thereafter at such other address of which notice is given
in accordance with the provisions of this Section 5.3.

     All such notices and communications shall be deemed to have been duly given: at the time
delivered by hand, if personally delivered; two business days after being deposited in the mail,
postage prepaid, if mailed; when receipt is acknowledged, if sent by facsimile; and on the next
business day if timely delivered to an overnight courier.

     Copies of all such notices, demands, or other communications to any Holder shall be deemed to
have been duly given, if such notice has been duly given to the Trustee under the Indentures, at
the address specified in such Indentures.

     5.4 Successor and Assigns. This Agreement shall inure to the benefit of and be
binding upon the successors, assigns and transferees of each of the parties, including, without
limitation and without the need for an express assignment, subsequent Holders; provided that,
nothing herein shall be deemed to permit any assignment, transfer or other disposition of
Registrable Securities in violation of the terms of the Purchase Agreement or the Indentures. If
any transferee of any Holder shall acquire Registrable Securities, in any manner, whether by
operation of law or otherwise, such Registrable Securities shall be held subject to all of the
terms of this Agreement, and by taking and holding such Registrable Securities

 

 

17

such person shall be
conclusively deemed to have agreed to be bound by and to perform all of the terms and provisions of
this Agreement, including the restrictions on resale set forth in this Agreement and, if
applicable, the Purchase Agreement, and such person shall be entitled to receive the benefits
hereof.

     5.5 Third Party Beneficiaries. Each Initial Purchaser (even if such Initial Purchaser
is not a Holder of Registrable Securities) shall be a third party beneficiary to the agreements
made hereunder between the Company, on the one hand, and the Holders, on the other hand, and shall
have the right to enforce such agreements directly to the extent it deems such enforcement
necessary or advisable to protect its rights or the rights of Holders hereunder. Each Holder of
Registrable Securities shall be a third party beneficiary to the agreements made hereunder between
the Company, on the one hand, and the Initial Purchasers, on the other hand, and shall have the
right to enforce such agreements directly to the extent it deems such enforcement necessary or
advisable to protect its rights hereunder.

     5.6 Specific Enforcement. Without limiting the remedies available to the Initial
Purchasers and the Holders, the Company acknowledges that any failure by the Company to comply with
its obligations under Section 2.1 may result in material irreparable injury to the Initial
Purchasers or the Holders for which there is no adequate remedy at law, that it may not be possible
to measure damages for such injuries precisely and that, in the
event of any such failure, any Initial Purchaser or any Holder may seek such relief as may be
required to specifically enforce the Company’s obligations under Sections 2.1.

     5.7 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.

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

     5.9 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAW OF THE STATE OF NEW YORK.

     5.10 Severability. In the event that any one or more of the provisions contained
herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable,
the validity, legality and enforceability of any such provision in every other respect and of the
remaining provisions contained herein shall not be affected or impaired thereby.

     5.11 Entire Agreement. This Agreement is intended by the parties as a final
expression of their agreement and intended to be a complete and exclusive statement of the
agreement and understanding of the parties hereto in respect of the subject matter contained
herein. There are no restrictions, promises, warranties or undertakings, other than those set forth
or referred to herein with respect to the registration rights granted by the Company with respect
to the Registrable Securities. This Agreement supersedes all prior agreements and understandings
between the parties with respect to such subject matter.

 

 

18

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

	 	 	 	 	 	 	 	 	 
	 	 	SYMANTEC CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ James A. Beer	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	James A. Beer	 	 
	 

	 	 	 	Title:
	 	Executive Vice President and Chief

Financial Officer	 	 

Confirmed and accepted as of the date

     first above written:

CITIGROUP GLOBAL MARKETS INC.

MORGAN STANLEY & CO. INCORPORATED

UBS SECURITIES LLC

CITIGROUP GLOBAL MARKETS INC.

	 	 	 	 
	By: 

	/s/ Guy Seebohm
	 	 
	 

	Name: Guy Seebohm	 	 
	 

	Title: Director — ECM	 	 

MORGAN STANLEY & CO. INCORPORATED

	 	 	 	 
	By: 

	/s/ Dave Chen
	 	 
	 

	Name: Dave Chen	 	 
	 

	Title: Vice President	 	 

UBS SECURITIES LLC

	 	 	 	 	 	 	 
	By: 

	/s/ Scott Jacobsen
	 	By: 
	/s/ Tony Pandjiris
	 	 
	 

	Name: Scott Jacobsen
	 	 	Name: Tony Pandjiris	 	 
	 

	Title: Executive Director
	 	 	Title: Associate Director	 	 

For themselves and on behalf of the other

Initial Purchasersexv10w01

 

Exhibit 10.01

SYMANTEC CORPORATION

0.75% Convertible Senior Notes Due 2011

1.00% Convertible Senior Notes Due 2013

Purchase Agreement

June 12, 2006

Citigroup Global Markets Inc.

Morgan Stanley & Co. Incorporated

UBS Securities LLC

As Representatives of the Initial Purchasers

c/o Citigroup Global Markets Inc.

388 Greenwich Street

New York, New York 10013

Ladies and Gentlemen:

          Symantec Corporation, a corporation organized under the laws of Delaware (the “Company”),
proposes to sell to the several parties named in Schedule I hereto (the “Initial Purchasers”), for
whom you (the “Representatives”) are acting as representatives, 0.75% Convertible Senior Notes due
2011 and 1.00% Convertible Senior Notes due 2013 (collectively, the “Notes”), of the Company (such
Notes to be sold by the Company, collectively, the “Firm Securities”) in the principal amounts
identified on Schedule 1 hereto. The Company also proposes to grant to the Initial Purchasers an
option to purchase up to an additional principal amount of securities set forth in Schedule 1 to
cover over-allotments, if any (the “Option Securities” and, together with the Firm Securities, the
“Securities”). The Securities are convertible into shares of Common Stock, par value $0.01 per
share (the “Common Stock”), of the Company at the initial conversion rates set forth in the Final
Memorandum (as defined below). The Securities are to be issued under separate indentures
(collectively, the “Indentures”), each dated as of June 16, 2006, between the Company and U.S. Bank
National Association, as trustee (“Trustee”). The Securities will have the benefit of a
registration rights agreement (the “Registration Rights Agreement”) to be dated as of the Closing
Date (as defined below), between the Company and the Initial Purchasers, pursuant to which the
Company will agree to register the Securities under the Act subject to the terms and conditions
therein specified. To the extent there are no additional parties listed on Schedule I other than
you, the term Representatives as used herein shall mean you as the Initial Purchasers, and the
terms Representatives and Initial Purchasers shall mean either the singular or plural as the
context requires. The use of the neuter in this Agreement shall include the feminine and masculine
wherever appropriate. Certain terms used herein are defined in Section 22 hereof.

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          The sale of the Securities to the Initial Purchasers will be made without registration of the
Securities under the Act in reliance upon exemptions from the registration requirements of the Act.

          In connection with the sale of the Securities, the Company has prepared a preliminary offering
memorandum, dated June 12, 2006 (as amended or supplemented at the date thereof, including any and
all exhibits thereto and any information incorporated by reference therein, the “Preliminary
Memorandum”), and a final offering memorandum, dated June 12, 2006 (as amended or supplemented at
the Execution Time, including any and all exhibits thereto and any information incorporated by
reference therein, the “Final Memorandum”). Each of the Preliminary Memorandum and the Final
Memorandum sets forth certain information concerning the Company and the Securities. The Company
hereby confirms that it has authorized the use of the Disclosure Package, the Preliminary
Memorandum and the Final Memorandum, and any amendment or supplement thereto, in connection with
the offer and sale of the Securities by the Initial Purchasers. Unless stated to the contrary, any
references herein to the terms “amend”, “amendment” or “supplement” with respect to the Disclosure
Package, the Preliminary Memorandum and the Final Memorandum shall be deemed to refer to and
include any information filed under the Exchange Act subsequent to the Execution Time that is
incorporated by reference therein.

          1. Representations and Warranties.

          (a) The Company represents and warrants to and agrees with each Initial Purchaser as set forth
below in this Section 1.

     (i) Each document filed or to be filed pursuant to the Exchange Act and
incorporated by reference in the Preliminary Memorandum or the Final Memorandum
complied or will comply when so filed in all material respects with the Exchange Act
and the applicable rules and regulations of the Commission thereunder. The
Preliminary Memorandum, at the date thereof, did not contain any 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. The Final Memorandum did not at the Execution Time, and will not on the
Closing Date (and, if the Option Securities are purchased, on the settlement date
for the Option Securities), (and any amendment or supplement thereto will not at the
date thereof, on the Closing Date and on the settlement date for the Option
Securities, if any) contain any 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 makes no representation or warranty as to the
information contained in or omitted from the Preliminary Memorandum or the Final
Memorandum, or any amendment or supplement thereto, in reliance upon and in
conformity with information furnished in writing to the Company by or on behalf of
the Initial Purchasers through the Representatives specifically for inclusion
therein, it being understood and agreed that the only such information furnished by
or on behalf of any Initial Purchaser consists of the information described as such
in Section 8(b) hereof.

2

 

     (ii) The Disclosure Package did not, as of the Execution Time, and at all times
through the Closing Date will not, contain any untrue statement of a material fact
or omit to state any material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading. The preceding sentence does not apply to statements in or omissions
from the Disclosure Package based upon and in conformity with written information
furnished to the Company by any Initial Purchaser through the Representatives
specifically for use therein, it being understood and agreed that the only such
information furnished by or on behalf of any Initial Purchaser consists of the
information described as such in Section 8(b) hereof.

     (iii) None of the Company, its Affiliates, or any person acting on its or their
behalf has, directly or indirectly, made offers or sales of any security, or
solicited offers to buy, any security under circumstances that would require the
registration of the Securities or the Common Stock issuable upon conversion thereof
under the Act.

     (iv) None of the Company, its Affiliates, or any person acting on its or their
behalf (other than the Initial Purchasers, as to whom the Company makes no
representation or warranty) has engaged in any form of general solicitation or
general advertising (within the meaning of Regulation D) in connection with any
offer or sale of the Securities.

     (v) The Securities satisfy the eligibility requirements of Rule 144A(d)(3)
under the Act.

     (vi) Subject to the accuracy of the Initial Purchasers’ representations and
warranties set forth in Section 4 hereof and compliance by the Initial Purchasers
with agreements set forth in Section 4 hereof, no registration under the Act of the
Securities is required for the offer and sale of the Securities to or by the Initial
Purchasers in the manner contemplated herein and in the Preliminary Memorandum, the
Disclosure Package and the Final Memorandum.

     (vii) The Company is not, and after giving effect to the offer and sale of the
Securities and the application of the proceeds thereof as described in the
Preliminary Memorandum, the Disclosure Package and the Final Memorandum will not be,
required to register as an “investment company” as defined in the Investment Company
Act, without taking account of any exemption arising out of the number of holders of
the Company’s securities.

     (viii) The Company is subject to and in full compliance with the reporting
requirements of Section 13 or Section 15(d) of the Exchange Act.

     (ix) Reserved.

     (x) The Company has not paid or agreed to pay to any person any compensation
for soliciting another to purchase the Securities (except as contemplated in this
Agreement).

3

 

     (xi) The Company has not taken, directly or indirectly, any action designed to
or that has constituted or that might reasonably be expected to cause or result,
under the Exchange Act or otherwise, in stabilization or manipulation of the price
of any security of the Company to facilitate the sale or resale of the Securities.

     (xii) The Company has been duly incorporated and is validly existing as a
corporation in good standing under the laws of the State of Delaware with full
corporate power and authority to own or lease, as the case may be, and to operate
its properties and conduct its business as described in the Preliminary Memorandum,
the Disclosure Package and the Final Memorandum, and is duly qualified to do
business as a foreign corporation and is in good standing under the laws of each
jurisdiction that requires such qualification, except for such jurisdictions where
the failure to be in good standing, have such corporate power or authority, or to so
qualify would not, individually or in the aggregate, have a material adverse effect
on the condition (financial or otherwise), prospects, earnings, business or
properties of the Company and its subsidiaries, taken as a whole, whether or not
arising from transactions in the ordinary course of business (a “Material Adverse
Effect”); and each of the significant subsidiaries (as identified in paragraph
(xxxviii) below) has been duly incorporated or formed and is validly existing as a
corporation or limited liability company in good standing under the laws of the
jurisdiction in which it is chartered, organized or formed, except where the failure
to be so organized, qualified or in good standing would not, individually or in the
aggregate, have a Material Adverse Effect.

     (xiii) All the outstanding shares of capital stock of each significant
subsidiary have been duly authorized and validly issued and are fully paid and
nonassessable, and, except as otherwise set forth in the Preliminary Memorandum, the
Disclosure Package and the Final Memorandum, all outstanding shares of capital stock
of the significant subsidiaries are owned by the Company either directly or through
wholly owned subsidiaries (except for nominal shares held by other shareholders as
required in certain jurisdictions) free and clear of any security interest, claim,
lien or encumbrance (other than intercompany security interests, claims, liens and
encumbrances).

     (xiv) The Company’s authorized capitalization is as set forth in the
Preliminary Memorandum, the Disclosure Package and the Final Memorandum; the capital
stock of the Company conforms to the description thereof contained in the
Preliminary Memorandum, the Disclosure Package and the Final Memorandum; the
outstanding shares of Common Stock have been duly authorized and validly issued and
are fully paid and nonassessable; the shares of Common Stock initially issuable upon
conversion of the Securities have been duly authorized and, when issued upon
conversion of the Securities, will be validly issued, fully paid and nonassessable;
the Board of Directors of the Company has duly and validly adopted resolutions
reserving such shares of Common Stock for issuance upon conversion of the
Securities; and the holders of outstanding shares of capital stock of the Company
are not entitled to preemptive

4

 

or other rights to subscribe for the Securities or to subscribe for the shares
of Common Stock issuable upon conversion thereof; and, except as set forth in the
Preliminary Memorandum, the Disclosure Package and the Final Memorandum, no options,
warrants or other rights to purchase, agreements or other obligations to issue, or
rights to convert any obligations into or exchange any securities for, shares of
capital stock of or ownership interests in the Company are outstanding.

     (xv) The statements in the Preliminary Memorandum and the Final Memorandum
under the headings “Certain U.S. Federal Income Tax Considerations”, “Certain ERISA
Considerations”, “Description of Notes”, “Registration Rights” and “Description of
Capital Stock” fairly summarize the matters therein described in all material
respects.

     (xvi) This Agreement has been duly authorized, executed and delivered by the
Company.

     (xvii) No consent, approval, authorization, filing with or order of any court
or governmental agency or body is required in connection with the issuance and sale
of the Securities or the consummation by the Company of the transactions
contemplated herein or in either Indenture, the Securities or the Registration
Rights Agreement, except (A) the qualification of the Indenture under the Trust
Indenture Act, (B) such as may be required under the blue sky laws of any
jurisdiction in which the Securities are offered and sold and (C) in the case of the
Registration Rights Agreement, such as will be obtained under the Act.

     (xviii) None of the execution and delivery of this Agreement, either Indenture
or the Registration Rights Agreement, the issuance and sale of the Securities, or
the consummation of any other of the transactions herein or therein contemplated, or
the fulfillment of the terms hereof or thereof will conflict with, result in a
breach or violation or imposition of any lien, charge or encumbrance upon any
property or assets of the Company or any of its significant subsidiaries pursuant
to, (A) the charter or by-laws or comparable constituting documents of the Company
or any of its subsidiaries; (B) the terms of any indenture, contract, lease,
mortgage, deed of trust, note agreement, loan agreement or other agreement,
obligation, condition, covenant or instrument to which the Company or any of its
significant subsidiaries is a party or bound or to which its or their property is
subject; or (C) any law or statute, or any rule, regulation, judgment, order or
decree of any court, regulatory body, administrative agency, governmental body,
arbitrator or other authority having jurisdiction over the Company or any of its
subsidiaries or any of its or their properties, except, in the case of clause (B)
above, for any such conflict, breach or violation as would not, individually or in
the aggregate, have a Material Adverse Effect.

     (xix) the Indentures have been duly authorized and, assuming due authorization,
execution and delivery thereof by the Trustee, when executed and delivered by the
Company, will constitute legal, valid and binding instruments

5

 

enforceable against the Company in accordance with their respective terms
(subject, as to enforcement of remedies, to applicable bankruptcy, reorganization,
insolvency, moratorium or other laws affecting creditors’ rights generally from time
to time in effect and to general principles of equity, including, without
limitation, concepts of materiality, reasonableness, good faith and fair dealing,
regardless of whether considered in a proceeding in equity or at law) and the
Securities will be convertible into Common Stock in accordance with the terms of the
applicable Indenture;

     (xx) the Securities have been duly authorized and, when executed and
authenticated in accordance with the terms of the applicable Indenture and delivered
to and paid for by the Initial Purchasers pursuant to this Agreement, will
constitute legal, valid and binding obligations of the Company entitled to the
benefits of the Indenture (subject, as to enforcement of remedies, to applicable
bankruptcy, reorganization, insolvency, moratorium or other laws affecting
creditors’ rights generally from time to time in effect and to general principles of
equity, including, without limitation, concepts of materiality, reasonableness, good
faith and fair dealing, regardless of whether considered in a proceeding in equity
or at law);

     (xxi) the Registration Rights Agreement has been duly authorized and, assuming
due authorization, execution and delivery thereof by or on behalf of the Initial
Purchasers, when executed and delivered will constitute the legal, valid, binding
and enforceable instrument of the Company (subject to (A) limitations on the rights
to indemnification and contribution as may be imposed under applicable law, and (B)
as to the enforcement of remedies, applicable bankruptcy, reorganization,
insolvency, moratorium or other laws affecting creditors’ rights generally from time
to time in effect and to general principles of equity, including, without
limitation, concepts of materiality, reasonableness, good faith and fair dealing,
regardless of whether considered in a proceeding in equity or at law);

     (xxii) The consolidated historical financial statements and schedule of the
Company and its consolidated subsidiaries included or incorporated by reference in
the Disclosure Package and the Final Memorandum present fairly in all material
respects the financial condition, results of operations and cash flows of the
Company as of the dates and for the periods indicated, comply as to form in all
material respects with the applicable accounting requirements of Regulation S-X and
have been prepared in conformity with generally accepted accounting principles in
the United States applied on a consistent basis throughout the periods involved
(except as otherwise noted therein); to the extent that the Preliminary Memorandum
or the Final Memorandum contain any non-GAAP financial measures (as defined in
Regulation S-K under the Securities Act) such measures have been provided in
compliance with Regulation G and, as applicable, Item 10 of Regulation S-K (assuming
such Regulations were applicable to the offering contemplated hereby).

6

 

     (xxiii) No action, suit or proceeding by or before any court or governmental
agency, authority or body or any arbitrator involving the Company or any of its
significant subsidiaries or its or their property is pending or, to the best
knowledge of the Company, threatened in writing that (A) could reasonably be
expected to have a material adverse effect on the performance of this Agreement, the
Indentures or the Registration Rights Agreement or the consummation of any of the
transactions contemplated hereby or thereby or (B) if the subject of a reasonably
possible unfavorable decision, ruling or finding, could reasonably be expected to
have a Material Adverse Effect, except as set forth in or contemplated in the
Disclosure Package and the Final Memorandum (exclusive of any amendment or
supplement thereto).

     (xxiv) Reserved.

     (xxv) Neither the Company nor any of its significant subsidiaries is in
violation or default of (A) any provision of its charter or bylaws or comparable
constituting documents; (B) the terms of any indenture, contract, lease, mortgage,
deed of trust, note agreement, loan agreement or other agreement, obligation,
condition, covenant or instrument to which it is a party or bound or to which its
property is subject; or (C) any statute, law, rule, regulation, judgment, order or
decree applicable to the Company or any of its significant subsidiaries of any
court, regulatory body, administrative agency, governmental body, arbitrator or
other authority having jurisdiction over the Company or such significant subsidiary
or any of its properties, as applicable, except, in the case of each of clauses (B)
and (C) above, for any such violation or default as would not, individually or in
the aggregate, have a Material Adverse Effect.

     (xxvi) KPMG LLP, who have delivered their reports with respect to the audited
consolidated financial statements and schedule, and with respect to management’s
assessment of the effectiveness of internal control over financial reporting and the
effectiveness of internal control over financial reporting included or incorporated
by reference in the Disclosure Package and the Final Memorandum, is an independent
registered public accounting firm with respect to the Company within the meaning of
the Act and the applicable rules and regulations thereunder adopted by the SEC and
the Public Company Accounting Oversight Board (United States).

     (xxvii) There are no stamp or other issuance or transfer taxes or duties or
other similar fees or charges required to be paid in connection with the execution
and delivery of this Agreement or the issuance or sale of the Securities.

     (xxviii) The Company has filed all applicable tax returns that are required to
be filed or has requested extensions thereof (except in any case in which the
failure so to file would not have a Material Adverse Effect and except as set forth
in or contemplated in the Disclosure Package and the Final Memorandum (exclusive of
any amendment or supplement thereto)) and has paid all taxes required to be paid by
it and any other assessment, fine or penalty levied against

7

 

it, to the extent that any of the foregoing is due and payable, except for any
such assessment, fine or penalty that is currently being contested in good faith or
as would not have a Material Adverse Effect and except as set forth in or
contemplated in the Preliminary Memorandum, the Disclosure Package and the Final
Memorandum (exclusive of any amendment or supplement thereto).

     (xxix) No labor problem or dispute with the employees of the Company or any of
its significant subsidiaries exists or is threatened or imminent, and the Company is
not aware of any existing or imminent labor disturbance by the employees of any of
its or its significant subsidiaries’ principal suppliers, contractors or customers,
except, in any case, as would not have a Material Adverse Effect and except as set
forth in or contemplated in the Preliminary Memorandum, the Disclosure Package and
the Final Memorandum (exclusive of any amendment or supplement thereto).

     (xxx) To the extent not self-insured, the Company and each of its subsidiaries
are insured by insurers of recognized financial responsibility against such losses
and risks and in such amounts as are prudent and customary in the businesses in
which they are engaged; and neither the Company nor any of its subsidiaries has any
reason to believe that it will not be able to renew its existing insurance coverage
as and when such coverage expires or to obtain similar coverage from similar
insurers as may be necessary to continue its business at a cost that would not have
a Material Adverse Effect except as set forth in or contemplated in the Preliminary
Memorandum, the Disclosure Package and the Final Memorandum (exclusive of any
amendment or supplement thereto); to the extent the Company or any of its
subsidiaries is self-insured, such entity is self-insured against losses in a manner
such entity believes is commercially reasonable.

     (xxxi) No subsidiary of the Company is currently prohibited, directly or
indirectly, from paying any dividends to the Company, from making any other
distribution on such subsidiary’s capital stock, from repaying to the Company any
loans or advances to such subsidiary from the Company or from transferring any of
such subsidiary’s property or assets to the Company, or any other subsidiary of the
Company, as the case may be, except as described in or contemplated in the
Disclosure Package and the Final Memorandum (exclusive of any amendment or
supplement thereto).

     (xxxii) Except as would not have a Material Adverse Effect, the Company and its
subsidiaries own, possess, license or have other rights to use on reasonable terms,
all patents, trade and service marks, trade names, copyrights, domain names (in each
case including all registrations and applications to register same), inventions,
trade secrets, technology, know-how, and other intellectual property, (collectively,
the “Intellectual Property”) necessary for the conduct of the Company’s business as
now conducted or as proposed in the Preliminary Memorandum, the Disclosure Package
and the Final Memorandum to be conducted. Except as set forth in the Preliminary
Memorandum, the Disclosure

8

 

Package and the Final Memorandum and except in each case as would not have a
Material Adverse Effect, (A) the Company owns, or has rights to use under license,
all such Intellectual Property free and clear in all material respects of all
adverse claims, liens or other encumbrances; (B) to the knowledge of the Company,
there is no material infringement by third parties of any such Intellectual
Property; (C) there is no pending or, to the Company’s knowledge, threatened action,
suit, proceeding or claim by any third party challenging the Company’s or its
subsidiaries’ rights in or to any such Intellectual Property, and the Company is
unaware of any facts which would form a reasonable basis for any such claim; (D)
there is no pending or, to the Company’s knowledge, threatened action, suit,
proceeding or claim by any third party challenging the validity, scope or
enforceability of any such Intellectual Property, and the Company is unaware of any
facts that would form a reasonable basis for any such claim; (E) there is no pending
or, to the Company’s knowledge, threatened action, suit, proceeding or claim by any
third party that the Company or any subsidiary infringes or otherwise violates any
patent, trademark, copyright, trade secret or other proprietary rights of any third
party, and the Company is unaware of any other fact which would form a reasonable
basis for a claim of such infringement or violation; and (F) to the knowledge of the
Company, there is no valid and subsisting patent or published patent application
that would preclude the Company, in any material respect, from practicing any such
Intellectual Property.

     (xxxiii) The statements contained in the Preliminary Memorandum and the Final
Memorandum under the captions Risk Factors – Third parties claiming that we infringe
their proprietary rights could cause us to incur significant legal expenses and
prevent us from selling our products,” “Risk Factors – If we do not protect our
proprietary information and prevent third parties from making unauthorized use of
our products and technology, our financial results could be harmed,” “Risk Factors –
Some of our products contain “open source” software, and any failure to comply with
the terms of one or more of these open source licenses could negatively affect our
business,” “Risk Factors – Our software products and website may be subject to
intentional disruption that could adversely impact our reputation and future sales”
and “Business – Intellectual Property”, insofar as such statements summarize legal
matters, agreements, documents, or proceedings discussed therein, are materially
accurate and fair summaries of such legal matters, agreements, documents or
proceedings.

     (xxxiv) Except as set forth in or contemplated in the Disclosure Package and
the Final Memorandum (exclusive of any amendment or supplement thereto) and except
as would not have a Material Adverse Effect, the Company and its subsidiaries
possess all licenses, certificates, permits and other authorizations issued by all
applicable regulatory authorities necessary to conduct their respective businesses,
and (subject to the foregoing exceptions) the Company and each of its subsidiaries
has not received any notice of proceedings relating to the revocation or
modification of any such certificate, authorization or permit.

9

 

     (xxxv) The Company and its subsidiaries, taken as a whole, maintain a system of
internal accounting controls sufficient to provide reasonable assurance that (i)
transactions are executed in accordance with management’s general or specific
authorizations; (ii) transactions are recorded as necessary to permit preparation of
financial statements in conformity with generally accepted accounting principles in
the United States and to maintain asset accountability; (iii) access to assets is
permitted only in accordance with management’s general or specific authorization;
and (iv) the recorded accountability for assets is compared with the existing assets
at reasonable intervals and appropriate action is taken with respect to any
differences. Except for the disclosures contained in Item 9A of the Company’s
Annual Report on Form 10-K for the fiscal year ended March 31, 2006, the internal
controls over financial reporting described above are effective and the Company is
not aware of any material weakness in such internal controls over financial
reporting.

     (xxxvi) The Company maintains “disclosure controls and procedures” (as such
term is defined in Rule 13a-15(e) under the Exchange Act) designed to ensure that
information required to be disclosed by the Company in reports that it files or
submits under the Exchange Act is recorded, processed, summarized and reported
within the time periods specified in the Commission’s rules and forms.

     (xxxvii) The Company and its subsidiaries are (A) in compliance with any and
all applicable laws and regulations relating to the protection of human health and
safety, the environment or hazardous or toxic substances or wastes, pollutants or
contaminants (“Environmental Laws”); (B) have received and are in compliance with
all permits, licenses or other approvals required of them under applicable
Environmental Laws to conduct their respective businesses; and (C) have not received
notice of any actual or potential liability under any Environmental Law, except
where such non-compliance with Environmental Laws, failure to receive required
permits, licenses or other approvals, or liability would not, individually or in the
aggregate, have a Material Adverse Effect, except as set forth in or contemplated in
the Disclosure Package and the Final Memorandum (exclusive of any amendment or
supplement thereto).

     (xxxviii) The subsidiaries listed on Annex A attached hereto are the only
“significant subsidiaries” of the Company (as defined in Rule l-02 of Regulation
S-X). References herein to “significant subsidiaries” are to the subsidiaries so
listed. All other subsidiaries of the Company, when taken together, do not
represent a “significant subsidiary” as so defined (except that, for this purpose
only, “30 percent” shall be substituted for all references to “10 percent” in such
definition).

     (xxxix) The operations of the Company and its subsidiaries are and have been
conducted at all times in compliance with applicable financial recordkeeping and
reporting requirements of the Currency and Foreign Transactions Reporting Act of
1970, as amended, the money laundering statutes of all jurisdictions, the rules and
regulations thereunder and any related or similar

10

 

rules, regulations or guidelines, issued, administered or enforced by any
governmental agency (collectively, the “Money Laundering Laws”) and no action, suit
or proceeding by or before any court or governmental agency, authority or body or
any arbitrator involving the Company or any of its subsidiaries with respect to the
Money Laundering Laws is pending or, to the best knowledge of the Company,
threatened.

     (xl) None of the Company, any of its subsidiaries or, to the knowledge of the
Company, any director, officer, agent, employee or Affiliate of the Company or any
of its subsidiaries is currently subject to any U.S. sanctions administered by the
Office of Foreign Assets Control of the U.S. Department of the Treasury (“OFAC”);
and the Company will not directly or indirectly use the proceeds of the offering of
the Securities hereunder, or lend, contribute or otherwise make available such
proceeds to any subsidiary, joint venture partner or other person or entity, for the
purpose of financing the activities of any person currently subject to any U.S.
sanctions administered by OFAC.

     (xli) There is and has been no failure on the part of the Company and any of
the Company’s directors or officers, in their capacities as such, to comply in all
material respects with any provision of the Sarbanes-Oxley Act of 2002 and the rules
and regulations promulgated in connection therewith (the “Sarbanes-Oxley Act”),
including Section 402 relating to loans and Sections 302 and 906 relating to
certifications.

     (xlii) Neither the Company nor any of its subsidiaries nor, to the knowledge of
the Company, any director, officer, agent, employee or Affiliate of the Company or
any of its subsidiaries is aware of or has taken any action, directly or indirectly,
that would result in a violation by such persons of the Foreign Corrupt Practices
Act of 1977, as amended, and the rules and regulations thereunder (the “FCPA”),
including, without limitation, making use of the mails or any means or
instrumentality of interstate commerce corruptly in furtherance of an offer,
payment, promise to pay or authorization of the payment of any money, or other
property, gift, promise to give, or authorization of the giving of anything of value
to any “foreign official” (as such term is defined in the FCPA) or any foreign
political party or official thereof or any candidate for foreign political office,
in contravention of the FCPA; and the Company, its subsidiaries and, to the
knowledge of the Company, its Affiliates have conducted their businesses in
compliance with the FCPA and have instituted and maintain policies and procedures
designed to ensure, and which are reasonably expected to continue to ensure,
continued compliance therewith.

     (xliii) Reserved.

Any certificate signed by any officer of the Company and delivered to the Representatives or
counsel for the Initial Purchasers in connection with the offering of the Securities shall be
deemed a representation and warranty by the Company, as to matters covered thereby, to each Initial
Purchaser.

11

 

          2. Purchase and Sale. (a) Subject to the terms and conditions and in reliance upon
the representations and warranties herein set forth, the Company agrees to sell to each Initial
Purchaser, and each Initial Purchaser agrees, severally and not jointly, to purchase from the
Company, at the purchase price set forth in Schedule I hereto, the principal amount of Firm
Securities set forth opposite such Initial Purchaser’s name in Schedule I hereto.

          (b) Subject to the terms and conditions and in reliance upon the representations and
warranties herein set forth, the Company hereby grants an option to the several Initial Purchasers
to purchase, severally and not jointly, the principal amount of Option Securities set forth on
Schedule I hereto at the same purchase price set forth in Schedule I hereto for the Firm
Securities. The option may be exercised in whole or in part, solely to cover over-allotments, at
any time on or before the 30th day after the date of the Final Memorandum upon written or telefaxed
notice by the Representatives to the Company setting forth the number of Option Securities as to
which the several Initial Purchasers are exercising the option and the settlement date therefor.
The number of Option Securities to be purchased by each Initial Purchaser shall be the same
percentage of the total number of Option Securities to be purchased by the several Initial
Purchasers as such Initial Purchaser is purchasing of the Firm Securities, subject to such
adjustments as you in your absolute discretion shall make to eliminate any fractional Securities.

          3. Delivery and Payment. (a) Delivery of and payment for the Firm Securities and the
Option Securities (if the option provided for in Section 2(b) hereof shall have been exercised on
or before the first Business Day immediately preceding the Closing Date) shall be made at 10:00
A.M., New York City time, on June 16, 2006, or at such time on such later date not more than one
Business Day after the foregoing date as the Representatives shall designate, which date and time
may be postponed by agreement among the Representatives and the Company or as provided in Section 9
hereof (such date and time of delivery and payment for the Securities being herein called the
“Closing Date”). Delivery of the Securities shall be made to the Representatives for the
respective accounts of the several Initial Purchasers against payment by the several Initial
Purchasers through the Representatives of the purchase prices of the Securities being sold by the
Company to or upon the order of the Company by wire transfer payable in same-day funds to the
accounts specified by the Company. Delivery of the Securities shall be made through the facilities
of The Depository Trust Company unless the Representatives shall otherwise instruct.

          (b) If the option provided for in Section 2(b) hereof is exercised after the first Business
Day immediately preceding the Closing Date, the Company will deliver the Option Securities (at the
expense of the Company) to the Representatives on the date specified by the Representatives (which
shall be within three Business Days after exercise of said option) for the respective accounts of
the several Initial Purchasers, against payment by the several Initial Purchasers through the
Representatives of the purchase price thereof to or upon the order of the Company by wire transfer
payable in same-day funds to the accounts specified by the Company. If settlement for the Option
Securities occurs after the Closing Date, the Company will deliver to the Representatives on the
settlement date for the Option Securities, and the obligation of the Initial Purchasers to purchase
the Option Securities shall be conditioned upon receipt of, supplemental opinions, certificates and
letters confirming as of such date the opinions, certificates and letters delivered on the Closing
Date pursuant to Section 6 hereof.

12

 

          4. Offering by Initial Purchasers. (a) Each Initial Purchaser acknowledges that the
Securities have not been and will not be registered under the Act and may not be offered or sold
within the United States except pursuant to an exemption from, or in a transaction not subject to,
the registration requirements of the Act.

          (b) Each Initial Purchaser, severally and not jointly, represents and warrants to and agrees
with the Company that:

     (i) it has not offered or sold, and will not offer or sell, any Securities
within the United States as part of their distribution at any time except to those
it reasonably believes to be “qualified institutional buyers” (as defined in Rule
144A under the Act) and in the manner contemplated in the Preliminary Memorandum,
the Disclosure Package and the Final Memorandum;

     (ii) it has not offered or sold, and will not offer or sell, any Securities
outside the United States as part of their distribution at any time except in the
manner contemplated in the Preliminary Memorandum, the Disclosure Package and the
Final Memorandum;

     (iii) neither it nor any person acting on its behalf has made or will make
offers or sales of the Securities in the United States by means of any form of
general solicitation or general advertising (within the meaning of Regulation D) in
the United States;

     (iv) in connection with each sale pursuant to Section 4(b)(i), it has taken or
will take reasonable steps to ensure that the purchaser of such Securities is aware
that such sale is being made in reliance on Rule 144A;

     (v) it is an “accredited investor” (as defined in Rule 501(a) of Regulation D);
and

     (vi) without the prior written consent of the Company, it has not given and
will not give to any prospective purchaser of the Securities any written information
concerning the offering of the Securities (“Written Information”) other than
materials contained in the Disclosure Package, the Final Memorandum or any other
offering materials prepared by or with the prior written consent of the Company;
provided that the prior written consent of the Company shall be deemed to have been
given in respect of (x) preliminary and final term sheets relating to the offer and
sale of the Securities containing customary terms and (y) material relating to the
offer and sale of the Securities prepared by the Initial Purchasers that does not
contain information provided by or on behalf of the Company specifically for use in
such material.

          5. Agreements.

          (a) The Company agrees with each Initial Purchaser that:

13

 

     (i) The Company will furnish to each Initial Purchaser and to counsel for the
Initial Purchasers, without charge, during the period until the completion of the
sale of the Securities (as determined by the Representatives), as many copies of the
materials contained in the Disclosure Package and the Final Memorandum and any
amendments and supplements thereto as such Initial Purchaser may reasonably request.

     (ii) The Company will not amend or supplement the Disclosure Package or the
Final Memorandum other than by filing documents under the Exchange Act that are
incorporated by reference therein, without the prior written consent of the
Representatives; provided, however, that prior to the completion of the distribution
of the Securities by the Initial Purchasers (as determined by the Representatives),
the Company will not file any document under the Exchange Act that is incorporated
by reference in the Disclosure Package or the Final Memorandum unless, prior to such
proposed filing, the Company has furnished the Representatives with a copy of such
document for their review and the Representatives have not reasonably objected to
the filing of such document. The Company will promptly advise the Representatives
when any document filed under the Exchange Act that is incorporated by reference in
the Disclosure Package or the Final Memorandum shall have been filed with the
Commission.

     (iii) If at any time prior to the completion of the sale of the Securities by
the Initial Purchasers (as determined by the Representatives), any event occurs as a
result of which the Disclosure Package or the Final Memorandum, as then amended or
supplemented, would include any 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, or if it should be
necessary to amend or supplement the Disclosure Package or the Final Memorandum to
comply with applicable law, the Company will promptly (A) notify the Representatives
of any such event; (B) subject to the requirements of Section 5(a)(ii), prepare an
amendment or supplement that will correct such statement or omission or effect such
compliance; and (C) supply any supplemented or amended Disclosure Package or Final
Memorandum to the several Initial Purchasers and counsel for the Initial Purchasers
without charge in such quantities as they may reasonably request.

     (iv) Without the prior written consent of the Representatives, the Company has
not given and will not give to any prospective purchaser of the Securities any
Written Information other than materials contained in the Disclosure Package, the
Final Memorandum or any other offering materials prepared by or with the prior
written consent of the Representatives.

     (v) The Company will arrange, if necessary, for the qualification of the
Securities for sale by the Initial Purchasers under the laws of such jurisdictions
as the Representatives may reasonably designate and will maintain such
qualifications in effect so long as required for the sale of the Securities;
provided that in no event shall the Company be obligated to qualify to do
business or as a

14

 

dealer in securities in any jurisdiction where it is not now so
qualified or to take any action that would subject it to service of process in
suits, other than those arising solely out of the offer or sale of the Securities,
in any jurisdiction where it is not now so subject or where it would be subject to
taxation as a foreign corporation in respect of doing business in any jurisdiction
in which it is not now so subject. The Company will promptly advise the
Representatives of the receipt by the Company of any notification with respect to
the suspension of the qualification of the Securities for sale in any jurisdiction
or the initiation or threatening of any proceeding for such purpose.

     (vi) During the period of two years after the last Closing Date, the Company
will not, and will not permit any of its Affiliates to, resell any Securities or
shares of Common Stock issued upon conversion thereof, which, in either case,
constitute “restricted securities” under Rule 144 of the Act, that have been
acquired by any of them.

     (vii) The Company will not, and will not permit any of its Affiliates, or any
person acting on its or their behalf, to directly or indirectly make offers or sales
of any security, or solicit offers to buy any security, under circumstances that
would require the registration of the Securities or Common Stock issuable upon
conversion thereof under the Act.

     (viii) The Company will not, and will not permit any of its Affiliates, or any
person acting on its or their behalf, to engage in any form of general solicitation
or general advertising (within the meaning of Regulation D) in connection with any
offer or sale of the Securities in the United States.

     (ix) So long as any of the Securities are “restricted securities within the
meaning of Rule 144(a)(3) under the Act, the Company will, during any period in
which it is not subject to and in compliance with Section 13 or 15(d) of the
Exchange Act, provide to each holder of such restricted securities and to each
prospective purchaser (as designated by such holder) of such restricted securities,
upon the request of such holder or prospective purchaser, any information required
to be provided by Rule 144A(d)(4) under the Act. This covenant is intended to be
for the benefit of the holders, and the prospective purchasers designated by such
holders, from time to time of such restricted securities.

     (x) The Company will cooperate with the Representatives and use its best
efforts to permit the Securities to be eligible for clearance and settlement through
The Depository Trust Company.

     (xi) The Company will not for a period of 90 days following the Execution Time,
without the prior written consent of the Representatives, directly or indirectly,
offer, sell, contract to sell, pledge, otherwise dispose of, enter into any
transaction which is designed to, or might reasonably be expected to, result in the
disposition (whether by actual disposition or effective economic disposition due to
cash settlement or otherwise) by the Company or any Affiliate of the

15

 

Company or any person in privity with the Company or any Affiliate of the
Company of, file (or participate in the filing of) a registration statement with the
Commission in respect of, or establish or increase a put equivalent position or
liquidate or decrease a call equivalent position within the meaning of Section 16 of
the Exchange Act in respect of, any shares of capital stock of the Company or any
securities convertible into, or exercisable or exchangeable for, shares of capital
stock of the Company (other than the Securities), or publicly announce an intention
to effect any such transaction; provided, however, that (A) the
Company may issue and sell Common Stock pursuant to any employee stock option plan,
stock ownership plan or dividend reinvestment plan of the Company described in the
Disclosure Package and the Final Memorandum and in effect at the Execution Time, (B)
the Company may issue Common Stock issuable upon the conversion of securities or the
exercise of warrants outstanding at the Execution Time and described in the
Disclosure Package and the Final Memorandum, (C) the Company may issue Common Stock
as consideration in connection with acquisitions (and enter into agreements with
respect thereto), provided that the recipients of any such shares that are actually
issued during the duration of the 90-day period referred to above shall agree to be
bound by the restrictions of this Section 5(a)(xi) for the duration of such period.

     (xii) The Company will not take, directly or indirectly, any action designed
to, or that has constituted or that might reasonably be expected to, cause or
result, under the Exchange Act or otherwise, in stabilization or manipulation of the
price of any security of the Company to facilitate the sale or resale of the
Securities.

     (xiii) The Company will, for a period of twelve months following the Execution
Time, furnish to the Representatives all reports or other communications (financial
or other) generally made available to its stockholders, and deliver such reports and
communications to the Representatives as soon as they are available, unless such
documents are furnished or filed with the Commission or any securities exchange on
which any class of securities of the Company is listed and generally made available
to the public.

     (xiv) The Company will comply in all material respects with all applicable
securities and other laws, rules and regulations, including, without limitation, the
Sarbanes-Oxley Act, and use its best efforts to cause the Company’s directors and
officers, in their capacities as such, to comply in all material respects with such
laws, rules and regulations, including, without limitation, the provisions of the
Sarbanes-Oxley Act.

     (xv) The Company will reserve and keep available at all times, free of
pre-emptive rights, the full number of shares of Common Stock issuable upon
conversion of the Securities.

16

 

     (xvi) From and after the Closing Date, the Company shall not take any action
that would cause the conversion rate to be subject to the limitation set forth in
Section 10.15(f) of the applicable Indenture.

     (xvii) Between the date hereof and the Closing Date, the Company will not do or
authorize any act or thing that would result in an adjustment of the conversion
rate.

     (xviii) The Company has not sold, and will not offer or sell, any Securities
outside the United States at any time except in the manner contemplated in the
Preliminary Memorandum, the Disclosure Package and the Final Memorandum.

          (b) The Company agrees to pay the costs and expenses relating to the following matters: (i)
the preparation of the Indentures and the Registration Rights Agreement and the preparation,
printing or reproduction of the materials contained in the Disclosure Package and the Final
Memorandum and each amendment or supplement to either of them; (ii) the printing (or reproduction)
and delivery (including postage, air freight charges and charges for counting and packaging) of
such copies of the materials contained in the Disclosure Package and the Final Memorandum, and all
amendments or supplements to either of them, as may, in each case, be reasonably requested for use
in connection with the offering and sale of the Securities; (iii) the issuance and delivery of the
Securities; (iv) any stamp or transfer taxes in connection with the original issuance and sale of
the Securities; (v) the printing (or reproduction) and delivery of this Agreement, any blue sky
memorandum and all other agreements or documents printed (or reproduced) and delivered in
connection with the offering of the Securities; (vi) any registration or qualification of the
Securities for offer and sale under the securities or blue sky laws of the several states
(including filing fees and the reasonable fees and expenses of counsel for the Initial Purchasers
relating to such registration and qualification); (vii) admitting the Securities for trading in the
PORTAL Market; (viii) the transportation and other expenses incurred by or on behalf of Company
representatives in connection with presentations to prospective purchasers of the Securities; (ix)
the fees and expenses of the Company’s accountants and the fees and expenses of counsel (including
local and special counsel) for the Company; and (x) all other costs and expenses incident to the
performance by the Company of its obligations hereunder.

          6. Conditions to the Obligations of the Initial Purchasers. The obligations of the
Initial Purchasers to purchase the Firm Securities and the Option Securities, as the case may be,
shall be subject to the accuracy of the representations and warranties of the Company contained
herein at the Execution Time, the Closing Date and any settlement date pursuant to Section 3
hereof, to the accuracy of the statements of the Company made in any certificates pursuant to the
provisions hereof, to the performance by the Company of its obligations hereunder and to the
following additional conditions:

          (a) The Company shall have requested and caused Fenwick & West LLP, counsel for the Company,
to furnish to the Representatives its opinion, dated the Closing Date and addressed to the
Representatives, to the effect that:

17

 

     (i) the Company has been duly incorporated and is validly existing as a
corporation in good standing under the laws of the State of Delaware, with full
corporate power and corporate authority to own or lease, as the case may be, and to
operate its properties and conduct its business as described in the Disclosure
Package and the Final Memorandum, and is duly qualified to do business as a foreign
corporation and is in good standing under the laws of each jurisdiction which
requires such qualification, except for such jurisdictions where the failure to be
in good standing, have such corporate power or authority, or to so qualify would
not, individually or in the aggregate, have a Material Adverse Effect;

     (ii) Reserved;

     (iii) the Company’s authorized equity capitalization is as set forth in the
Final Memorandum under the heading “Capitalization” and the capital stock of the
Company conforms to the description thereof contained in the Disclosure Package and
the Final Memorandum; the Securities conform to the description thereof contained in
the Disclosure Package and the Final Memorandum; the shares of Common Stock
initially issuable upon conversion of the Securities have been duly authorized and,
when issued upon conversion of the Securities, will be validly issued, fully paid
and nonassessable; the Board of Directors of the Company has duly and validly
adopted resolutions reserving such shares of Common Stock for issuance upon
conversion of the Securities in accordance with the terms of the applicable
Indenture; and the holders of outstanding shares of capital stock of the Company are
not entitled to any preemptive rights to subscribe for the Securities or for the
shares of Common Stock issuable upon conversion of the Securities;

     (iv) the Indentures have been duly authorized, executed and delivered by the
Company, and constitute legal, valid and binding instruments enforceable against the
Company in accordance with their respective terms (subject, as to enforcement of
remedies, to applicable bankruptcy, reorganization, insolvency, moratorium or other
laws affecting creditors’ rights generally from time to time in effect and to
general principles of equity, including, without limitation, concepts of
materiality, reasonableness, good faith and fair dealing, regardless of whether
considered in a proceeding in equity or at law) and the Securities will be
convertible into Common Stock in accordance with the terms of the applicable
Indenture;

     (v) the Securities have been duly authorized and executed by the Company and,
when authenticated in accordance with the terms of the applicable Indenture and
delivered against payment therefor pursuant to this Agreement, will constitute
legal, valid and binding obligations of the Company entitled to the benefits of the
applicable Indenture (subject, as to enforcement of remedies, to applicable
bankruptcy, reorganization, insolvency, moratorium or other laws affecting
creditors’ rights generally from time to time in effect and to general principles of
equity, including, without limitation, concepts of materiality,

18

 

reasonableness, good faith and fair dealing, regardless of whether considered
in a proceeding in equity or at law);

     (vi) the statements set forth under the headings “Description of Notes”.
“Registration Rights”, “Description of Capital Stock” and “Certain U.S. Federal Tax
Considerations” in the Final Memorandum, insofar as such statements purport to
summarize certain provisions of the Securities, the Indentures, the Registration
Rights Agreement and the Common Stock, or matters of applicable tax law and
regulations, provide in all material respects an accurate and fair summary of such
provisions, laws and regulations;

     (vii) the Registration Rights Agreement has been duly authorized, executed and
delivered by the Company and constitutes the legal, valid, binding and enforceable
instrument of the Company (subject to (A) limitations on the rights to
indemnification and contribution as may be imposed under applicable law, and (B) as
to the enforcement of remedies, applicable bankruptcy, reorganization, insolvency,
moratorium or other laws affecting creditors’ rights generally from time to time in
effect and to general principles of equity, including, without limitation, concepts
of materiality, reasonableness, good faith and fair dealing, regardless of whether
considered in a proceeding in equity or at law);

     (viii) the execution and delivery of each of this Agreement, either Indenture
or the Registration Rights Agreement, the issuance and sale of the Securities, and
the consummation of any other of the transactions herein or therein provided, and
the fulfillment of the terms hereof or thereof, including the issuance of the Common
Stock upon conversion of the Securities, do not (A) result in a breach of any
agreement or instrument filed as an exhibit pursuant to Item 601(b)(10) of
Regulation S-K in the Company’s annual report on Form 10-K for the fiscal year ended
March 31, 2006 (such list of agreements and instruments having been represented to
such counsel by the Company as a list of all material agreements or instruments to
which the Company or any of its subsidiaries is a party or is bound that would be
required to be filed as an exhibit to the Company’s Annual Report on Form 10-K
pursuant to Item 601(b)(10) if such Annual Report on Form 10-K were filed as of the
Closing Date); (B) result in violation of the charter or by-laws of the Company; or
(C) result in the violation of any law or statute or any rule, regulation, judgment,
order or decree known to such counsel specifically naming the Company as being bound
of any court, regulatory body, administrative agency, governmental body, arbitrator
or other authority having jurisdiction over the Company or any of its respective
properties (provided that such counsel shall be entitled to limit their opinion to
laws that, in the experience of such counsel, customarily apply to similar
transactions);

     (ix) Reserved;

     (x) Reserved;

19

 

     (xi) Reserved;

     (xii) this Agreement has been duly authorized, executed and delivered by the
Company;

     (xiii) no consent, approval, authorization, filing with or order of any court
or governmental agency or body is required to be obtained or made by the Company for
the Company to execute, deliver or perform, as of the Closing Date, each of this
Agreement, the Indentures and the Registration Rights Agreement, for the Company to
issue or sell the Securities at the Closing and to comply with the terms of thereof
and to consummate the transactions provided for in such documents, except (A) the
qualification of the Indenture under the Trust Indenture Act, (B) such as may be
required under the blue sky or securities laws of any jurisdiction in which the
Securities are offered or sold, and (C) in the case of the Registration Rights
Agreement, such as will be made or obtained under the Act;

     (xiv) assuming the accuracy of the representations and warranties and
compliance with the agreements contained herein (without regard to the
representations found in Section 1(a)(vi)), the sale and delivery of the Securities
by the Company to the Initial Purchasers or the offer and sale by the Initial
Purchasers of the Securities in the manner provided for herein and in the Disclosure
Package and the Final Memorandum will be exempt from the registration requirements
of Section 5 of the Act; prior to the effectiveness of any registration statement
prepared pursuant to the Company’s obligations under the Registration Rights
Agreement, the Indentures are not required to be qualified under the Trust Indenture
Act.

     (xv) the Company is not and, after giving effect to the offering and sale of
the Securities and the application of the proceeds thereof as described in the
Disclosure Package and the Final Memorandum, will not be required to register as an
“investment company” as defined in the Investment Company Act, without taking
account of any exemption arising out of the number of holders of the Company’s
securities.

In rendering such opinion, such counsel may rely as to matters of fact, to the extent they deem
proper, on certificates of responsible officers of the Company and public officials. In addition
to the matters set forth above, such opinion shall also include a statement to the effect that such
counsel has no reason to believe that (i) the Disclosure Package (but not including any electronic
“road shows”), as amended or supplemented at the Execution Time, at the Execution Time contained
any untrue statement of a material fact or omitted to state any material fact necessary in order to
make the statements therein, in the light of circumstances under which they were made, not
misleading (in each case, other than the financial statements, schedule and other financial
information contained therein and statistical data derived therefrom, as to which such counsel need
express no opinion), and (ii) the Final Memorandum at the Execution Time or on the Closing Date the
Final Memorandum contained or contains any untrue statement of a material fact or omitted or omits
to state any material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading (in each

20

 

case, other than the financial statements, schedule and other financial information contained
therein and statistical data derived therefrom, as to which such counsel need express no opinion).
References to the Disclosure Package, the Preliminary Memorandum and the Final Memorandum in this
Section 6(a) include any amendment or supplement thereto at the Closing Date. In addition to the
foregoing, the opinion of such counsel shall include a statement to the effect that, to such
counsel’s knowledge and other than as set forth in the Disclosure Package and the Final Memorandum,
there is no pending or threatened action, suit or proceeding by or before any court or
governmental agency, authority or body or any arbitrator involving the Company or any of its
subsidiaries or its or their property that, if the subject of an unfavorable decision, ruling or
finding, would singly or in the aggregate, have a Material Adverse Effect and, to such counsel’s
knowledge, the description of current legal proceedings in the Disclosure Package and the Final
Memorandum is an accurate summary in all material respects of the legal proceedings described
therein (provided that such counsel shall express no view as to any disclosure regarding the
adequacy or amount of any accruals or charges).

          (b) The Representatives shall have received from Simpson Thacher & Bartlett LLP, counsel for
the Initial Purchasers, such opinion or opinions, dated the Closing Date and addressed to the
Representatives, with respect to the issuance and sale of the Securities, the Indenture, the
Disclosure Package, the Final Memorandum (as amended or supplemented at the Closing Date) and other
related matters as the Representatives may reasonably require, and the Company shall have furnished
to such counsel such documents as they request for the purpose of enabling them to pass upon such
matters.

          (c) The Company shall have furnished to the Representatives a certificate of the Company,
signed by (x) the Chairman of the Board or the President and (y) the principal financial or
accounting officer of the Company, dated the Closing Date, to the effect that the signers of such
certificate have carefully examined the Disclosure Package and the Final Memorandum and any
supplements or amendments thereto, and this Agreement and that:

     (i) the representations and warranties of the Company in this Agreement are
true and correct on and as of the Closing Date with the same effect as if made on
the Closing Date, and the Company has complied with all the agreements and satisfied
all the conditions on its part to be performed or satisfied hereunder at or prior to
the Closing Date; and

     (ii) since the date of the most recent financial statements included or
incorporated by reference in the Disclosure Package and the Final Memorandum
(exclusive of any amendment or supplement thereto), there has been no material
adverse change in the condition (financial or otherwise), prospects, earnings,
business or properties of the Company and its subsidiaries, taken as a whole,
whether or not arising from transactions in the ordinary course of business, except
as set forth in or contemplated in the Disclosure Package and the Final Memorandum
(exclusive of any amendment or supplement thereto).

          (d) At the Execution Time and at the Closing Date, the Company shall have requested and caused
KPMG LLP to furnish to the Representatives letters, dated respectively as of the Execution Time and
as of the Closing Date, in form and substance satisfactory to the

21

 

Representatives and confirming that they are independent accountants within the meaning of the
Exchange Act and the applicable published rules and regulations thereunder and stating in effect
that:

     (i) in their opinion, the audited financial statements and financial statement
schedule included or incorporated by reference in the Preliminary Memorandum and the
Final Memorandum and reported on by them comply as to form with the applicable
accounting requirements of Regulation S-X;

     (ii) on the basis of carrying out certain specified procedures (but not an
examination in accordance with generally accepted auditing standards) which would
not necessarily reveal matters of significance with respect to the comments set
forth in such letter; a reading of the minutes of the meetings of the shareholders,
directors and audit, compensation and nominating and corporate governance committees
of the Company and the subsidiaries; a review of the available monthly financial
information of the Company for each monthly period subsequent to March 31, 2006;
and inquiries of certain officials of the Company who have responsibility for
financial and accounting matters of the Company and its subsidiaries as to
transactions and events subsequent to March 31, 2006, nothing came to their
attention which caused them to believe that with respect to the period subsequent to
March 31, 2006, there were any changes, at a specified date not more than five days
prior to the date of the letter, in the long-term debt of the Company and its
subsidiaries or capital stock of the Company or decreases in the stockholders’
equity or consolidated net current assets of the Company as compared with the
amounts shown on the March 31, 2006 consolidated balance sheet included or
incorporated by reference in the Preliminary Memorandum and the Final Memorandum, or
for the period from April 1, 2006 to such specified date there were any decreases,
as compared with the corresponding period in the preceding year, in net revenues or
income before income taxes or in total or per share amounts of net income of the
Company and its subsidiaries, except in all instances for changes or decreases set
forth in such letter, in which case the letter shall be accompanied by an
explanation by the Company as to the significance thereof unless said explanation is
not deemed necessary by the Representatives; and

     (iii) they have performed certain other specified procedures as a result of
which they determined that certain information of an accounting, financial or
statistical nature (which is limited to accounting, financial or statistical
information derived from the general accounting records of the Company and its
subsidiaries) set forth in the Preliminary Memorandum and the Final Memorandum,
agrees with the accounting records of the Company and its subsidiaries, excluding
any questions of legal interpretation.

          All references in this Section 6(e) to the Preliminary Memorandum and the Final Memorandum
include any amendment or supplement thereto at the date of the applicable letter.

22

 

          (e) Subsequent to the Execution Time or, if earlier, the dates as of which information is
given in the Disclosure Package (exclusive of any amendment or supplement thereto) and the Final
Memorandum (exclusive of any amendment or supplement thereto), there shall not have been (i) any
change or decrease specified in the letter or letters referred to in paragraph (d) of this Section
6; or (ii) any change, or any development involving a prospective change, in or affecting the
condition (financial or otherwise), prospects, earnings, business or properties of the Company and
its subsidiaries taken as a whole, whether or not arising from transactions in the ordinary course
of business, except as set forth in or contemplated in the Disclosure Package and the Final
Memorandum (exclusive of any amendment or supplement thereto), the effect of which, in any case
referred to in clause (i) or (ii) above, is, in the sole judgment of the Representatives, so
material and adverse as to make it impractical or inadvisable to proceed with the offering or
delivery of the Securities as contemplated in the Disclosure Package and the Final Memorandum
(exclusive of any amendment or supplement thereto).

          (f) Subsequent to the Execution Time, there shall not have been any decrease in the rating of any
of the Company’s debt securities by any “nationally recognized statistical rating organization” (as
defined for purposes of Rule 436(g) under the Act) or any notice given of any intended or potential
decrease in any such rating or of a possible change in any such rating that does not indicate the
direction of the possible change.

          (g) At or prior to the Execution Time, the Company shall have furnished to the Representatives
a letter substantially in the form of Exhibit A hereto from Messrs. Thompson, Beers and Courville
addressed to the Representatives.

          (h) On or prior to the Closing Date, the Company shall have furnished to the Representatives
such further information, certificates and documents as the Representatives may reasonably request.

          (i) The Securities shall have been designated as PORTAL-eligible securities in accordance with
the rules and regulations of the NASD and the Securities shall be eligible for clearance and
settlement through The Depository Trust Company.

          (j) The Common Stock shall be listed and admitted to trading on the Nasdaq National Market
and the Company shall have filed with the Nasdaq National Market a listing of additional shares
notification form with respect to the sale of the Securities.

          (k) At or prior to the Closing Date, the Company and the Trustee shall have executed and
delivered the Indenture, and the Company and the Initial Purchasers shall have executed and
delivered the Registration Rights Agreement.

          If any of the conditions specified in this Section 6 shall not have been fulfilled when and as
provided in this Agreement, or if any of the opinions and certificates mentioned above or elsewhere
in this Agreement shall not be reasonably satisfactory in form and substance to the Representatives
and counsel for the Initial Purchasers, this Agreement and all obligations of the Initial
Purchasers hereunder may be cancelled at, or at any time prior to, the Closing Date by the
Representatives. Notice of such cancellation shall be given to the Company in writing or by
telephone or facsimile confirmed in writing.

23

 

          The documents required to be delivered by this Section 6 will be delivered at the office of
counsel for the Initial Purchasers, at Simpson Thacher & Bartlett LLP, 2550 Hanover Street, Palo
Alto, CA 94304, on the Closing Date.

          7. Reimbursement of Expenses. If the sale of the Securities provided for herein is
not consummated because any condition to the obligations of the Initial Purchasers set forth in
Section 6 hereof is not satisfied, because of any termination pursuant to Section 10 hereof or
because of any refusal, inability or failure on the part of the Company to perform any agreement
herein or comply with any provision hereof other than by reason of a default by any of the Initial
Purchasers, the Company will reimburse the Initial Purchasers severally through the Representatives
on demand for all expenses (including reasonable fees and disbursements of counsel) that shall have
been incurred by them in connection with the proposed purchase and sale of the Securities.

          8. Indemnification and Contribution. (a) The Company agrees to indemnify and hold
harmless each Initial Purchaser, the directors, officers, employees, Affiliates and agents of each
Initial Purchaser and each person, if any, who controls any Initial Purchaser within the meaning of
either the Act or the Exchange Act against any and all losses, claims, damages or liabilities,
joint or several, to which they or any of them may become subject under the Act, the Exchange Act
or other U.S. federal or state statutory law or regulation, at common law or otherwise, insofar as
such losses, claims, damages or liabilities or actions in respect thereof arise out of or are based
upon any untrue statement or alleged untrue statement of a material fact contained in the
Preliminary Memorandum, the Final Memorandum, any Issuer Written Information or any other written
information used by or on behalf of the Company in connection with the offer or sale of the
Securities, or in 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, in the light of the circumstances under which they were
made, not misleading, and agrees to reimburse each such indemnified party, as incurred, for any
legal or other expenses reasonably incurred by it in connection with investigating or defending any
such loss, claim, damage, liability or action; provided, however, that the Company
will not be liable in any such case to the extent that any such loss, claim, damage or liability
arises out of or is based upon any such untrue statement or alleged untrue statement or omission or
alleged omission made in the Preliminary Memorandum or the Final Memorandum, or in any amendment
thereof or supplement thereto, in reliance upon and in conformity with written information
furnished to the Company by or on behalf of any Initial Purchaser through the Representatives
specifically for inclusion therein. This indemnity agreement will be in addition to any liability
that the Company may otherwise have.

          (b) Each Initial Purchaser severally, and not jointly, agrees to indemnify and hold harmless
the Company, each of its directors, each of its officers, and each person, if any, who controls the
Company within the meaning of either the Act or the Exchange Act, to the same extent as the
foregoing indemnity to each Initial Purchaser, but only with reference to written information
furnished to the Company by or on behalf of such Initial Purchaser through the Representatives
specifically for inclusion in the Preliminary Memorandum or the Final Memorandum, or in any
amendment or supplement thereto. This indemnity agreement will be in addition to any liability
that any Initial Purchaser may otherwise have. The Company acknowledges and the Representatives
agree on behalf of all Initial Purchasers that (i) the

24

 

statements set forth in the last paragraph of the cover page regarding delivery of the
Securities and (ii), under the heading “Plan of Distribution”, (A) the third and fourth sentences
in the first paragraph under the subheading “New Issues of Notes,” (B) the first and second full
paragraphs under the subheading “Price Stabilization and Short Positions,” and (C) the first full
paragraph under the subheading “Electronic Distribution” in the Preliminary Memorandum and the
Final Memorandum constitute the only information furnished in writing by or on behalf of the
Initial Purchasers for inclusion in the Preliminary Memorandum or the Final Memorandum or in any
amendment or supplement thereto.

          (c) Promptly after receipt by an indemnified party under this Section 8 of notice of the
commencement of any action, such indemnified party will, if a claim in respect thereof is to be
made against the indemnifying party under this Section 8, notify the indemnifying party in writing
of the commencement thereof; but the failure so to notify the indemnifying party (i) will not
relieve it from liability under paragraph (a) or (b) above unless and to the extent it did not
otherwise learn of such action and such failure results in the forfeiture by the indemnifying party
of substantial rights and defenses and (ii) will not, in any event, relieve the indemnifying party
from any obligations to any indemnified party other than the indemnification obligation provided in
paragraph (a) or (b) above. The indemnifying party shall be entitled to appoint counsel (including
local counsel) of the indemnifying party’s choice at the indemnifying party’s expense to represent
the indemnified party in any action for which indemnification is sought (in which case the
indemnifying party shall not thereafter be responsible for the fees and expenses of any separate
counsel, other than local counsel if not appointed by the indemnifying party, retained by the
indemnified party or parties except as set forth below); provided, however, that
such counsel shall be satisfactory to the indemnified party. Notwithstanding the indemnifying
party’s election to appoint counsel (including local counsel) to represent the indemnified party in
an action, the indemnified party shall have the right to employ separate counsel (including local
counsel), and the indemnifying party shall bear the reasonable fees, costs and expenses of such
separate counsel if (i) the use of counsel chosen by the indemnifying party to represent the
indemnified party would present such counsel with a conflict of interest; (ii) the actual or
potential defendants in, or targets of, any such action include both the indemnified party and the
indemnifying party and the indemnified party shall have reasonably concluded that there may be
legal defenses available to it and/or other indemnified parties that are different from or
additional to those available to the indemnifying party; (iii) the indemnifying party shall not
have employed counsel satisfactory to the indemnified party to represent the indemnified party
within a reasonable time after notice of the institution of such action; or (iv) the indemnifying
party shall authorize the indemnified party to employ separate counsel at the expense of the
indemnifying party. An indemnifying party will not, without the prior written consent of the
indemnified parties, settle or compromise or consent to the entry of any judgment with respect to
any pending or threatened claim, action, suit or proceeding in respect of which indemnification or
contribution may be sought hereunder (whether or not the indemnified parties are actual or
potential parties to such claim or action) unless such settlement, compromise or consent includes
an unconditional release of each indemnified party from all liability arising out of such claim,
action, suit or proceeding.

          (d) In the event that the indemnity provided in paragraph (a) or (b) of this Section 8 is
unavailable to or insufficient to hold harmless an indemnified party for any reason, the Company
and the Initial Purchasers severally agree to contribute to the aggregate losses,

25

 

claims, damages and liabilities (including legal or other expenses reasonably incurred in
connection with investigating or defending any loss claim, damage, liability or action)
(collectively “Losses”) to which the Company and one or more of the Initial Purchasers may be
subject in such proportion as is appropriate to reflect the relative benefits received by the
Company on the one hand and by the Initial Purchasers on the other from the offering of the
Securities; provided, however, that in no case shall any Initial Purchaser be
responsible for any amount in excess of the purchase discount or commission applicable to the
Securities purchased by such Initial Purchaser hereunder. If the allocation provided by the
immediately preceding sentence is unavailable for any reason, the Company and the Initial
Purchasers severally shall contribute in such proportion as is appropriate to reflect not only such
relative benefits but also the relative fault of the Company on one hand and the Initial Purchasers
on the other in connection with the statements or omissions that resulted in such Losses, as well
as any other relevant equitable considerations. Benefits received by the Company shall be deemed
to be equal to the total net proceeds from the offering (before deducting expenses) received by it,
and benefits received by the Initial Purchasers shall be deemed to be equal to the total purchase
discounts and commissions. Relative fault shall be determined by reference to, among other things,
whether any untrue or alleged untrue statement of a material fact or the omission or alleged
omission to state a material fact relates to information provided by the Company on one hand or the
Initial Purchasers on the other, the intent of the parties and their relative knowledge, access to
information and opportunity to correct or prevent such untrue statement or omission. The Company
and the Initial Purchasers agree that it would not be just and equitable if contribution were
determined by pro rata allocation or any other method of allocation that does not take account of
the equitable considerations referred to above. Notwithstanding the provisions of this paragraph
(d), no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Act) shall be entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation. For purposes of this Section 8, each person who controls an Initial Purchaser
within the meaning of either the Act or the Exchange Act and each director, officer, employee,
Affiliate and agent of an Initial Purchaser shall have the same rights to contribution as such
Initial Purchaser, and each person, if any, who controls the Company within the meaning of either
the Act or the Exchange Act and each officer and director of the Company shall have the same rights
to contribution as the Company, subject in each case to the applicable terms and conditions of this
paragraph (d).

          9. Default by an Initial Purchaser. If any one or more Initial Purchasers shall fail
to purchase and pay for any of the Securities agreed to be purchased by such Initial Purchaser
hereunder and such failure to purchase shall constitute a default in the performance of its or
their obligations under this Agreement, the remaining Initial Purchasers shall be obligated
severally to take up and pay for (in the respective proportions which the number of Securities set
forth opposite their names in Schedule I hereto bears to the aggregate number of Securities set
forth opposite the names of all the remaining Initial Purchasers) the Securities which the
defaulting Initial Purchaser or Initial Purchasers agreed but failed to purchase; provided,
however, that in the event that the aggregate number of Securities which the defaulting
Initial Purchaser or Initial Purchasers agreed but failed to purchase shall exceed 10% of the
aggregate number of Securities set forth in Schedule I hereto, the remaining Initial Purchasers
shall have the right to purchase all, but shall not be under any obligation to purchase any, of the
Securities, and if such nondefaulting Initial Purchasers do not purchase all the Securities, this
Agreement will terminate without liability to any nondefaulting Initial Purchaser or the Company.
In the event of a default

26

 

by any Initial Purchaser as set forth in this Section 9, the Closing Date shall be postponed
for such period, not exceeding five Business Days, as the Representatives shall determine in order
that the required changes in the Final Memorandum or in any other documents or arrangements may be
effected. Nothing contained in this Agreement shall relieve any defaulting Initial Purchaser of
its liability, if any, to the Company or any nondefaulting Initial Purchaser for damages occasioned
by its default hereunder.

          10. Termination. This Agreement shall be subject to termination in the absolute
discretion of the Representatives, by notice given to the Company prior to delivery of, and payment
for, the Securities, if at any time prior to such delivery and payment (i) trading in the Company’s
Common Stock shall have been suspended by the Nasdaq National Market or trading in securities
generally on the New York Stock Exchange or the Nasdaq National Market shall have been suspended or
limited or minimum prices shall have been established on any such exchanges; (ii) a banking
moratorium shall have been declared either by U.S. federal or New York State authorities; or (iii)
there shall have occurred any outbreak or escalation of hostilities, declaration by the United
States of a national emergency or war or other calamity or crisis the effect of which on financial
markets is such as to make it, in the sole judgment of the Representatives, impractical or
inadvisable to proceed with the offering or delivery of the Securities as contemplated in the
Disclosure Package and the Final Memorandum (exclusive of any amendment or supplement thereto).

          11. Representations and Indemnities to Survive. The respective agreements,
representations, warranties, indemnities and other statements of the Company or its officers and of
the Initial Purchasers set forth in or made pursuant to this Agreement will remain in full force
and effect, regardless of any investigation made by or on behalf of the Initial Purchasers or the
Company or any of the indemnified persons referred to in Section 8 hereof, and will survive
delivery of and payment for the Securities. The provisions of Sections 7 and 8 hereof shall
survive the termination or cancellation of this Agreement.

          12. Notices. All communications hereunder will be in writing and effective only on
receipt, and, if sent to the Representatives, will be mailed, delivered or telefaxed to the
Citigroup General Counsel (fax no.: (212) 816-7912) and confirmed to Citigroup at 388 Greenwich
Street, New York, New York 10013, Attention: General Counsel; if sent to the Company, will be
mailed, delivered or telefaxed to (408) 517-8121 and confirmed to it at 20330 Stevens Creek Blvd.,
Cupertino, California 95014, attention of the Legal Department.

          13. Successors. This Agreement will inure to the benefit of and be binding upon the
parties hereto and their respective successors and the indemnified persons referred to in Section 8
hereof and their respective successors, and, except as expressly set forth in Section 5(a)(ix)
hereof, no other person will have any right or obligation hereunder.

          14. Jurisdiction. The Company agrees that any suit, action or proceeding against the
Company brought by any Initial Purchaser, the directors, officers, employees and agents of any
Initial Purchaser, or by any person who controls any Initial Purchaser, arising out of or based
upon this Agreement or the transactions contemplated hereby may be instituted in any State or U.S.
federal court in The City of New York and County of New York, and waives any objection

27

 

which it may now or hereafter have to the laying of venue of any such proceeding, and
irrevocably submits to the exclusive jurisdiction of such courts in any suit, action or proceeding.

          15. Integration. This Agreement supersedes all prior agreements and understandings
(whether written or oral) between the Company and the Initial Purchasers, or any of them, with
respect to the subject matter hereof.

          16. Applicable Law. This Agreement will be governed by and construed in accordance
with the laws of the State of New York applicable to contracts made and to be performed within the
State of New York.

          17. Waiver of Jury Trial. The Company hereby irrevocably waives, to the fullest
extent permitted by applicable law, any and all right to trial by jury in any legal proceeding
arising out of or relating to this Agreement or the transactions contemplated hereby.

          18. No Fiduciary Duty. The Company hereby acknowledge that (a) the purchase and sale
of the Securities pursuant to this Agreement is an arm’s-length commercial transaction between the
Company, on the one hand, and the Initial Purchasers and any affiliate through which it may be
acting, on the other, (b) the Initial Purchasers are acting as principal and not as an agent or
fiduciary of the Company and (c) the Company’s engagement of the Initial Purchasers in connection
with            the offering and the process leading up to the offering is as independent
contractors and not in any other capacity. Furthermore, the Company agrees that they are solely
responsible for making their own judgments in connection with the offering (irrespective of whether
any of the Initial Purchasers has advised or is currently advising the Company on related or other
matters). The Company agrees that they will not claim that the Initial Purchasers have rendered
advisory services of any nature or respect, or owe an agency, fiduciary or similar duty to the
Company, in connection with such transaction or the process leading thereto.

          19. Counterparts. This Agreement may be signed in one or more counterparts, each of
which shall constitute an original and all of which together shall constitute one and the same
agreement.

          20. Headings. The section headings used herein are for convenience only and shall not
affect the construction hereof.

          21. Definitions. The terms that follow, when used in this Agreement, shall have the
meanings indicated.

          “Act” shall mean the U.S. Securities Act of 1933, as amended, and the rules and regulations of
the Commission promulgated thereunder.

          “Affiliate” shall have the meaning specified in Rule 501(b) of Regulation D.

          “Business Day” shall mean any day other than a Saturday, a Sunday or a legal holiday or a day
on which banking institutions or trust companies are authorized or obligated by law to close in The
City of New York.

28

 

          “Citigroup” shall mean Citigroup Global Markets Inc.

          “Commission” shall mean the Securities and Exchange Commission.

          “Disclosure Package” shall mean (i) the Preliminary Memorandum, as amended or supplemented at
the Execution Time, (ii) the principal amount of Securities and the price of the Securities to
initial investors of the Securities on the front cover of the Final Memorandum and (iii) any Issuer
Written Information.

          “Exchange Act” shall mean the U.S. Securities Exchange Act of 1934, as amended, and the rules
and regulations of the Commission promulgated thereunder.

          “Execution Time” shall mean the date and time that this Agreement is executed and delivered by
the parties hereto.

          “Investment Company Act” shall mean the U.S. Investment Company Act of 1940, as amended, and
the rules and regulations of the Commission promulgated thereunder.

          “Issuer Written Information” shall mean any writings in addition to the Preliminary Memorandum
that the parties expressly agree in writing to treat as part of the Disclosure Package, which
information shall include, without limitation, any electronic “road shows” conducted in connection
with the offer and sale of the Securities.

          “NASD” shall mean the National Association of Securities Dealers, Inc.

          “PORTAL” shall mean the Private Offerings, Resales and Trading through Automated Linkages
system of the NASD.

          “Regulation D” shall mean Regulation D under the Act.

          “Regulation S” shall mean Regulation S under the Act.

          “Regulation S-X” shall mean Regulation S-X under the Act.

          “Trust Indenture Act” shall mean the Trust Indenture Act of 1939, as amended, and the rules
and regulations of the Commission promulgated thereunder.

29

 

          If the foregoing is in accordance with your understanding of our agreement, please sign and
return to us the enclosed duplicate hereof, whereupon this letter and your acceptance shall
represent a binding agreement between the Company and the several Initial Purchasers.

	 	 	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 	 	 
	 	 	Symantec Corporation
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ James A. Beer
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	James A. Beer
	 

	 	 	 	Title:
	 	Executive Vice President and Chief Financial Officer

	 	 	 	 	 	 	 	 	 
	The foregoing Agreement is hereby
confirmed and accepted as of the date
first above written.	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Citigroup Global Markets Inc.	 	 	 	 	 	 
	Morgan Stanley & Co. Incorporated	 	 	 	 	 	 
	UBS Securities LLC	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	Citigroup Global Markets Inc.	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Guy Seebohm	 	 	 	 	 	 
	 

	 	Name: Guy Seebohm	 	 	 	 	 	 
	 

	 	Title: Director — ECM	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	Morgan Stanley & Co. Incorporated	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ William Salisbury	 	 	 	 	 	 
	 

	 	Name: William Salisbury	 	 	 	 	 	 
	 

	 	Title: Managing Director	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	UBS Securities LLC
	 	 	 	By:
	 	UBS Securities LLC
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Scott Jacobsen
	 	 	 	By:
	 	/s/ Derek Jensen
	 

	 	Name: Scott Jacobsen
	 	 	 	 	 	Name: Derek Jensen
	 

	 	Title: Executive Director
	 	 	 	 	 	Title: Associate Director
	 
	 	 	 	 	 	 	 	 
	For themselves and the other several
Initial Purchasers named in Schedule I
to the foregoing Agreement.	 	 	 	 	 	 

30

 

SCHEDULE I

	 	 	 	 	 
	 	 	Principal Amount of Firm Securities	 
	Initial Purchasers	 	due 2011 to be Purchased	 
	Citigroup Global Markets Inc.
	 	$	303,334,000	 
	Morgan Stanley & Co. Incorporated
	 	 	303,333,000	 
	UBS Securities LLC
	 	 	303,333,000	 
	Banc of America Securities LLC
	 	 	45,000,000	 
	JP Morgan Securities Inc.
	 	 	45,000,000	 
	 
	 	 	 
	Total:
	 	$	1,000,000,000	 
	 
	 	 	 

	 	 	 	 	 
	 	 	Principal Amount of Firm Securities	 
	Initial Purchasers	 	due 2013 to be Purchased	 
	Citigroup Global Markets Inc.
	 	$	303,334,000	 
	Morgan Stanley & Co. Incorporated
	 	 	303,333,000	 
	UBS Securities LLC
	 	 	303,333,000	 
	Banc of America Securities LLC
	 	 	45,000,000	 
	JP Morgan Securities Inc.
	 	 	45,000,000	 
	 
	 	 	 
	Total:
	 	$	1,000,000,000	 
	 
	 	 	 

Purchase Price for the Firm Securities: 98.5% of the Principal Amount thereof

2

 

SCHEDULE I (Continued)

	 	 	 	 	 
	 	 	Principal Amount of Option	 
	Initial Purchasers	 	Securities due 2011	 
	Citigroup Global Markets Inc.
	 	$	30,333,400	 
	Morgan Stanley & Co. Incorporated
	 	 	30,333,300	 
	UBS Securities LLC
	 	 	30,333,300	 
	Banc of America Securities LLC
	 	 	4,500,000	 
	JP Morgan Securities Inc.
	 	 	4,500,000	 
	 
	 	 	 
	Total:
	 	$	100,000,000	 
	 
	 	 	 

	 	 	 	 	 
	 	 	Principal Amount of Option	 
	Initial Purchasers	 	Securities due 2013	 
	Citigroup Global Markets Inc.
	 	$	30,333,400	 
	Morgan Stanley & Co. Incorporated
	 	 	30,333,300	 
	UBS Securities LLC
	 	 	30,333,300	 
	Banc of America Securities LLC
	 	 	4,500,000	 
	JP Morgan Securities Inc.
	 	 	4,500,000	 
	 
	 	 	 
	Total:
	 	$	100,000,000	 
	 
	 	 	 

A-2

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