Document:

AMENDED AND RESTATED GUARANTY
                      (The Leather Factory of Canada, Ltd.)

         This  Guaranty,  dated as of March  20,  2002,  is made by The  Leather
Factory of  Canada,  Ltd.,  a Manitoba  corporation  (the  "Guarantor")  for the
benefit of Wells Fargo Bank Minnesota,  National Association, a national banking
association (with its participants, successors and assigns, the "Lender").

         The Lender  and THE  LEATHER  FACTORY,  INC.,  a Delaware  corporation;
ROBERTS,  CUSHMAN & COMPANY, INC., a New York corporation;  THE LEATHER FACTORY,
INC., a Nevada  corporation;  THE LEATHER FACTORY OF NEVADA  INVESTMENTS INC., a
Nevada corporation;  TANDY LEATHER COMPANY,  INC., a Nevada  corporation;  TANDY
LEATHER COMPANY  INVESTMENTS,  INC., a Nevada corporation;  THE LEATHER FACTORY,
L.P., a Texas limited partnership;  TANDY LEATHER COMPANY, L.P., a Texas limited
partnership;  HI-LINE LEATHER & MANUFACTURING COMPANY, a California corporation;
and THE LEATHER FACTORY,  INC., an Arizona  corporation (the  "Borrowers"),  are
parties to an Amended and Restated  Credit and  Security  Agreement of even date
herewith  (as the same may be amended,  supplemented  or  restated  from time to
time, the "Credit Agreement") pursuant to which the Lender may make advances and
extend other financial accommodations to the Borrowers.

         Pursuant to an Assignment of  Indebtedness  and Loan  Documents of even
date herewith,  the Old Lender (as defined in the Credit Agreement)  assigned to
the Lender all of its right,  title and interest in the Old Credit Documents (as
defined  in  the  Credit  Agreement).  As a  condition  to  providing  financial
accommodations to the Borrowers,  the Lender has required the Borrowers to amend
and restate certain Old Credit Documents.

         As a further  condition to providing  financial  accommodations  to the
Borrowers,  the Lender has  required  the  Guarantor  to amend and  restate  its
Guaranty dated as of November 22, 1999 (the "Prior Guaranty").

         ACCORDINGLY,  the Guarantor, in consideration of the premises and other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, hereby agrees as follows:

         1. Definitions.  All terms defined in the Credit Agreement that are not
otherwise defined
herein shall have the meanings given them in the Credit Agreement.

         2.  Indebtedness  Guaranteed.   The  Guarantor  hereby  absolutely  and
unconditionally  guarantees to the Lender the full and prompt  payment when due,
whether at maturity or earlier by reason of  acceleration  or otherwise,  of (i)
the  Obligations and (ii) each and every other sum now or hereafter owing to the
Lender by the Borrowers,  including but not limited to, debts,  liabilities  and
obligations arising out of loans, credit transactions, financial accommodations,
discounts,  purchases of property or other transactions with any Borrower or for
any Borrower's  account or out of any other  transaction  or event,  owed to the

<PAGE>

Lender or owed to others by reason of  participations  granted  to or  interests
acquired or created for or sold to them by the Lender,  in each case whether now
existing or hereafter  arising,  whether  arising  directly in a transaction  or
event involving the Lender or acquired by the Lender from another by purchase or
assignment  or as  collateral  security,  whether  owed by a Borrower as drawer,
maker,  endorser,  accommodation  party,  guarantor,  principal,  surety or as a
member  of any  partnership,  syndicate,  association  or group or in any  other
capacity,  whether  absolute  or  contingent,  direct or  indirect,  primary  or
secondary,  sole, joint, several or joint and several, secured or unsecured, due
or not due,  contractual,  tortuous or statutory,  liquidated  or  unliquidated,
arising by  agreement  or imposed  by law or  otherwise  (all of said sums being
hereinafter called the "Indebtedness").

         3. Guarantor's Representations and Warranties. The Guarantor represents
and  warrants  to the  Lender  that (i) the  Guarantor  is a  corporation,  duly
organized and existing in good standing and has full power and authority to make
and deliver this Guaranty; (ii) the execution,  delivery and performance of this
Guaranty by the Guarantor have been duly  authorized by all necessary  action of
its directors and  stockholders  and do not and will not violate the  provisions
of,  or  constitute  a  default  under,  any  presently  applicable  law  or its
Constituent  Documents  or any  agreement  presently  binding on it;  (iii) this
Guaranty has been duly executed and delivered by the authorized  Officers of the
Guarantor  and   constitutes  its  lawful,   binding  and  legally   enforceable
obligation; and (iv) the authorization,  execution,  delivery and performance of
this Guaranty do not require  notification to,  registration with, or consent or
approval  by, any  federal,  state or local  regulatory  body or  administrative
agency.  The Guarantor  represents and warrants to the Lender that the Guarantor
has a direct and substantial  economic  interest in the Borrowers and expects to
derive substantial  benefits therefrom and from any loans, credit  transactions,
financial   accommodations,   discounts,   purchases   of  property   and  other
transactions and events resulting in the creation of the Indebtedness guarantied
hereby,  and that this Guaranty is given for a business  purpose.  The Guarantor
agrees to rely exclusively on the right to revoke this Guaranty prospectively as
to future  transactions,  in accordance with paragraph 4, if at any time, in the
opinion of the directors or officers,  the benefits  then being  received by the
Guarantor in  connection  with this  Guaranty are not  sufficient to warrant the
continuance  of this Guaranty as to the future  Indebtedness  of the  Borrowers.
Accordingly, so long as this Guaranty is not revoked prospectively in accordance
with  paragraph 4, the Lender may rely  conclusively  on a continuing  warranty,
hereby made,  that the Guarantor  continues to be benefited by this Guaranty and
the Lender shall have no duty to inquire into or confirm the receipt of any such
benefits,  and this Guaranty  shall be effective and  enforceable  by the Lender
without regard to the receipt, nature or value of any such benefits.

         4.  Unconditional  Nature.  No act or thing need occur to establish the
Guarantor's  liability  hereunder,  and no act or thing, except full payment and
discharge of all of the  Indebtedness,  shall in any way exonerate the Guarantor
hereunder  or  modify,  reduce,  limit  or  release  the  Guarantor's  liability
hereunder. This is an absolute, unconditional and continuing guaranty of payment
of the  Indebtedness  and shall  continue to be in force and be binding upon the
Guarantor,  whether or not all of the  Indebtedness is paid in full,  until this
Guaranty is revoked  prospectively as to future transactions,  by written notice

                                      -2-
<PAGE>

actually  received by the Lender,  and such revocation shall not be effective as
to the amount of  Indebtedness  existing or committed  for at the time of actual
receipt  of  such  notice  by the  Lender,  or as to any  renewals,  extensions,
refinancings or refundings thereof.

         5.   Dissolution  or  Insolvency  of  Guarantor.   The  dissolution  or
adjudication  of  bankruptcy of the  Guarantor  shall not revoke this  Guaranty,
except  upon  actual  receipt of written  notice  thereof by the Lender and only
prospectively,  as to future transactions, as herein set forth. If the Guarantor
shall be dissolved or shall be or become insolvent (however  defined),  then the
Lender  shall have the right to declare  immediately  due and  payable,  and the
Guarantor  will  forthwith  pay to the  Lender,  the full  amount  of all of the
Indebtedness whether due and payable or unmatured.  If the Guarantor voluntarily
commences or there is commenced involuntarily against the Guarantor a case under
the United States Bankruptcy Code, the full amount of all Indebtedness,  whether
due and payable or  unmatured,  shall be  immediately  due and  payable  without
demand or notice thereof.

         6.  Subrogation.  The  Guarantor  hereby  waives  all  rights  that the
Guarantor  may  now  have  or  hereafter   acquire,   whether  by   subrogation,
contribution,  reimbursement,  recourse, exoneration,  contract or otherwise, to
recover from any Borrower or from any property of a Borrower any sums paid under
this  Guaranty.  The  Guarantor  will  not  exercise  or  enforce  any  right of
contribution to recover any such sums from any person who is a co-obligor with a
Borrower or a guarantor  or surety of the  Indebtedness  or from any property of
any such  person  until all of the  Indebtedness  shall have been fully paid and
discharged

         7. Enforcement Expenses. The Guarantor will pay or reimburse the Lender
for all costs,  expenses and  attorneys'  fees paid or incurred by the Lender in
endeavoring  to collect and  enforce  the  Indebtedness  and in  enforcing  this
Guaranty.

         8. Lender's Rights.  The Lender shall not be obligated by reason of its
acceptance  of this  Guaranty  to  engage  in any  transactions  with or for any
Borrower. Whether or not any existing relationship between the Guarantor and any
Borrower  has been  changed or ended and whether or not this  Guaranty  has been
revoked,  the Lender may enter into  transactions  resulting  in the creation or
continuance of the Indebtedness  and may otherwise  agree,  consent to or suffer
the creation or continuance of any of the  Indebtedness,  without any consent or
approval by the  Guarantor  and without  any prior or  subsequent  notice to the
Guarantor. The Guarantor's liability shall not be affected or impaired by any of
the following  acts or things  (which the Lender is expressly  authorized to do,
omit or suffer  from time to time,  both  before  and after  revocation  of this
Guaranty,  without consent or approval by or notice to the  Guarantor):  (i) any
acceptance of collateral security, guarantors, accommodation parties or sureties
for any or all of the  Indebtedness;  (ii) one or more extensions or renewals of
the  Indebtedness  (whether or not for longer than the  original  period) or any
modification of the interest  rates,  maturities,  if any, or other  contractual
terms  applicable to any of the Indebtedness or any amendment or modification of
any of the terms or provisions of any loan  agreement or other  agreement  under
which the Indebtedness or any part thereof arose; (iii) any waiver or indulgence
granted to any Borrower,  any delay or lack of diligence in the  enforcement  of
the Indebtedness or any failure to institute proceedings, file a claim, give any

                                      -3-
<PAGE>

required notices or otherwise protect any of the Indebtedness;  (iv) any full or
partial release of,  compromise or settlement with, or agreement not to sue, any
Borrower  or any  guarantor  or other  person  liable in  respect  of any of the
Indebtedness; (v) any release, surrender, cancellation or other discharge of any
evidence of the  Indebtedness  or the acceptance of any instrument in renewal or
substitution therefor; (vi) any failure to obtain collateral security (including
rights of setoff) for the  Indebtedness,  or to see to the proper or  sufficient
creation and perfection  thereof,  or to establish the priority  thereof,  or to
preserve,  protect,  insure,  care  for,  exercise  or  enforce  any  collateral
security; or any modification,  alteration,  substitution,  exchange, surrender,
cancellation, termination, release or other change, impairment, limitation, loss
or discharge of any collateral  security;  (vii) any collection,  sale, lease or
disposition  of, or any other  foreclosure or enforcement of or realization  on,
any collateral security; (viii) any assignment,  pledge or other transfer of any
of the Indebtedness or any evidence thereof; (ix) any manner, order or method of
application  of any  payments  or  credits  upon the  Indebtedness;  and (x) any
election by the Lender under  Section  1111(b) of the United  States  Bankruptcy
Code. The Guarantor  waives any and all defenses and  discharges  available to a
surety, guarantor or accommodation co-obligor.

         9. Waivers by  Guarantor.  The  Guarantor  waives any and all defenses,
claims, setoffs and discharges of any Borrower, or any other obligor, pertaining
to the Indebtedness, except the defense of discharge by payment in full. Without
limiting the generality of the foregoing,  the Guarantor will not assert,  plead
or enforce  against  the Lender any  defense of waiver,  release,  discharge  or
disallowance  in bankruptcy,  statute of limitations,  res judicata,  statute of
frauds, anti-deficiency statute, fraud, incapacity,  minority, usury, illegality
or  unenforceability  which may be available to any Borrower or any other person
liable in respect of any of the  Indebtedness,  or any setoff available  against
the Lender to any Borrower or any other such  person,  whether or not on account
of a related  transaction.  The  Guarantor  expressly  agrees that the Guarantor
shall be and remain liable for any deficiency remaining after foreclosure of any
mortgage or security  interest  securing  the  Indebtedness,  whether or not the
liability of any Borrower or any other obligor for such deficiency is discharged
pursuant to statute or judicial  decision.  The liability of the Guarantor shall
not be  affected  or  impaired  by any  voluntary  or  involuntary  liquidation,
dissolution,  sale  or  other  disposition  of all or  substantially  all of the
assets,  marshalling  of  assets  and  liabilities,   receivership,  insolvency,
bankruptcy,   assignment   for  the   benefit  of   creditors,   reorganization,
arrangement,   composition  or  readjustment  of,  or  other  similar  event  or
proceeding affecting,  any Borrower or any of its assets. The Guarantor will not
assert,  plead or  enforce  against  the  Lender  any  claim,  defense or setoff
available  to  the  Guarantor   against  any  Borrower.   The  Guarantor  waives
presentment, demand for payment, notice of dishonor or nonpayment and protest of
any  instrument  evidencing the  Indebtedness.  The Lender shall not be required
first to  resort  for  payment  of the  Indebtedness  to any  Borrower  or other
persons, or their properties,  or first to enforce,  realize upon or exhaust any
collateral security for the Indebtedness, before enforcing this Guaranty.

         10. If Payments Set Aside, etc. If any payment applied by the Lender to
the Indebtedness is thereafter set aside, recovered, rescinded or required to be
returned  for  any  reason  (including,   without  limitation,  the  bankruptcy,

                                      -4-
<PAGE>

insolvency  or  reorganization  of any  Borrower  or  any  other  obligor),  the
Indebtedness  to which such  payment was  applied  shall for the purpose of this
Guaranty  be  deemed  to  have  continued  in  existence,  notwithstanding  such
application,  and this Guaranty shall be enforceable as to such  Indebtedness as
fully as if such application had never been made.

         11. No Duties Owed by Lender.  The  Guarantor  acknowledges  and agrees
that the Lender (i) has not made any  representations or warranties with respect
to, (ii) does not assume any  responsibility to the Guarantor for, and (iii) has
no duty to provide information to the Guarantor regarding, the enforceability of
any of the  Indebtedness  or the  financial  condition  of any  Borrower  or any
guarantor.  The Guarantor has independently  determined the  creditworthiness of
each  Borrower  and  the  enforceability  of  the  Indebtedness  and  until  the
Indebtedness  is paid in full will  independently  and  without  reliance on the
Lender continue to make such determinations.

         12. Additional Obligation of Guarantor. The Guarantor's liability under
this  Guaranty  is in  addition  to and  shall  be  cumulative  with  all  other
liabilities  of the  Guarantor  to the Lender as  guarantor,  surety,  endorser,
accommodation  co-obligor or otherwise of any of the Indebtedness or obligations
of the Borrowers,  without any limitation as to amount, unless the instrument or
agreement evidencing or creating such other liability  specifically  provides to
the contrary.

         13.  Miscellaneous.  This Guaranty  shall be effective upon delivery to
the Lender, without further act, condition or acceptance by the Lender, shall be
binding upon the Guarantor and the  successors  and assigns of the Guarantor and
shall inure to the benefit of the Lender and its  participants,  successors  and
assigns.  Any invalidity or  unenforceability of any provision or application of
this Guaranty shall not affect other lawful provisions and application  thereof,
and to this end the  provisions  of this  Guaranty are declared to be severable.
This  Guaranty may not be waived,  modified,  amended,  terminated,  released or
otherwise  changed  except by a writing  signed by the Guarantor and the Lender.
This  Guaranty  shall  be  governed  by and  construed  in  accordance  with the
substantive  laws  (other than  conflict  laws) of the State of  Minnesota.  The
Guarantor  hereby (i)  consents to the  personal  jurisdiction  of the state and
federal  courts  located  in the  State  of  Minnesota  in  connection  with any
controversy related to this Guaranty; (ii) waives any argument that venue in any
such forum is not convenient,  (iii) agrees that any litigation initiated by the
Lender or the  Guarantor in  connection  with this  Guaranty  shall be venued in
either the District Court of Hennepin  County,  Minnesota,  or the United States
District Court, District of Minnesota,  Fourth Division;  and (iv) agrees that a
final  judgment in any such suit,  action or proceeding  shall be conclusive and
may be enforced in other  jurisdictions  by suit on the judgment or in any other
manner provided by law.

         14. Restatement. This Agreement is executed for the purpose of amending
and restating the Prior Guaranty

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<PAGE>

         15. Waiver of Jury Trial. THE GUARANTOR HEREBY  IRREVOCABLY  WAIVES ALL
RIGHTS TO TRIAL BY JURY IN ANY ACTION,  PROCEEDING OR  COUNTERCLAIM  ARISING OUT
OF, BASED ON OR PERTAINING TO THIS GUARANTY.

         IN  WITNESS  WHEREOF,  this  Guaranty  has been  duly  executed  by the
Guarantor the date first written above.

                                             THE LEATHER FACTORY OF CANADA, LTD.

                                             By /s/ Wray Thompson
                                               ------------------
                                               Wray Thompson
                                               Its Chief Executive Officer

                                             Address:     3825 E. Loop 820 South
                                                          P.O. Box 50429
                                                          Ft. Worth, Texas 76105

STATE OF TEXAS            )

COUNTY OF TARRANT         )

         The foregoing  instrument was  acknowledged  before me this 20th day of
March, 2002 by Wray Thompson, the Chief Executive Officer of The Leather Factory
of Canada, Ltd., a Manitoba corporation, on behalf of the corporation.

                                                              /s/ Cheryl Landry
                                                              -----------------
                                                              Notary Public<PAGE>
                                                                   Exhibit 10.2

                                  $500,000,000

                      BROCADE COMMUNICATIONS SYSTEMS, INC.

                 2% CONVERTIBLE SUBORDINATED DEBENTURES DUE 2007

                               PURCHASE AGREEMENT

December 18, 2001

<PAGE>

December 18, 2001

Morgan Stanley & Co. Incorporated
Goldman, Sachs & Co.
Salomon Smith Barney Inc.
Merrill Lynch, Pierce Fenner and Smith Incorporated
c/o Morgan Stanley & Co. Incorporated
1585 Broadway
New York, New York 10036

Dear Sirs and Mesdames:

         Brocade Communications Systems, Inc., a Delaware corporation (the
"Company"), proposes to issue and sell to the several purchasers named in
Schedule I hereto (the "Initial Purchasers") $500,000,000.00 principal amount
of its 2% Convertible Subordinated Debentures due 2007 (the "Firm Securities")
to be issued pursuant to the provisions of an Indenture dated as of December
21, 2001 (the "Indenture") between the Company and State Street Bank & Trust
Company of California, N.A., as Trustee (the "Trustee"). The Company also
proposes to issue and sell to the Initial Purchasers not more than an
additional $50,000,000.00 principal amount of its 2% Convertible Subordinated
Debentures due 2007 (the "Additional Securities") if and to the extent that
you, as Managers of the offering, shall have determined to exercise, on behalf
of the Initial Purchasers, the right to purchase such 2% Convertible
Subordinated Debentures due 2007 granted to the Initial Purchasers in Section 2
hereof. The Firm Securities and the Additional Securities are hereinafter
collectively referred to as the "Securities". The Securities will be
convertible into shares of Common Stock, par value $0.001 (the "Underlying
Securities").

         The Securities and the Underlying Securities will be offered without
being registered under the Securities Act of 1933, as amended (the "Securities
Act"), to qualified institutional buyers in compliance with the exemption from
registration provided by Rule 144A under the Securities Act.

         The Initial Purchasers and their direct and indirect transferees will
be entitled to the benefits of a Registration Rights Agreement dated as of the
date of the Indenture between the Company and the Initial Purchasers (the
"Registration Rights Agreement").

         In connection with the sale of the Securities, the Company will
prepare a final offering memorandum (the "Memorandum") including or
incorporating by reference a description of the terms of the Securities and the
Underlying Securities, the terms of the offering and a description of the
Company. As used herein, the term "Memorandum" shall include in each case the
documents incorporated by reference therein. The terms "supplement",
"amendment" and "amend" as used herein with respect to the Memorandum shall
include all documents deemed to be incorporated by reference in the Memorandum
that are filed subsequent to the date of the Memorandum with the Securities and
Exchange Commission (the "Commission") pursuant to the Securities Exchange Act
of 1934, as amended (the "Exchange Act").

                                      1

<PAGE>

         1.       Representations and Warranties. The Company represents and
warrants to, and agrees with, you that:

                  (a)  (i)     Each document, if any, filed or to be filed
         pursuant to the Exchange Act and incorporated by reference
         in either 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 and (ii) the Memorandum, in
         the form used by the Initial Purchasers to confirm sales and on the
         Closing Date (as defined in Section 4), will not contain any untrue
         statement of a material fact or omit to state a material fact
         necessary to make the statements therein, in the light of the
         circumstances under which they were made, not misleading, except that
         the representations and warranties set forth in this paragraph do not
         apply to statements or omissions in the Memorandum based upon
         information relating to any Initial Purchaser furnished to the
         Company in writing by such Initial Purchaser through you expressly
         for use therein.

                  (b)  The Company has been duly incorporated, is validly
         existing as a corporation in good standing under the laws of the
         jurisdiction of its incorporation, has the corporate power and
         authority to own its property and to conduct its business as
         described in the Memorandum and is duly qualified to transact
         business and is in good standing in each jurisdiction in which the
         conduct of its business or its ownership or leasing of property
         requires such qualification, except to the extent that the failure to
         be so qualified or be in good standing would not have a material
         adverse effect on the Company and its subsidiaries, taken as a whole.

                  (c)  Each Significant Subsidiary (as defined below) of the
         Company has been duly incorporated, is validly existing as a
         corporation in good standing under the laws of the jurisdiction of
         its incorporation, has the corporate power and authority to own its
         property and to conduct its business as described in the Memorandum
         and is duly qualified to transact business and is in good standing in
         each jurisdiction in which the conduct of its business or its
         ownership or leasing of property requires such qualification, except
         to the extent that the failure to be so qualified or be in good
         standing would not have a material adverse effect on the Company and
         its subsidiaries, taken as a whole; all of the issued shares of
         capital stock of each Significant Subsidiary of the Company have been
         duly and validly authorized and issued, are fully paid and
         non-assessable and are owned directly or indirectly by the Company
         (except for nominal ownership required for compliance with applicable
         local laws), free and clear of all liens, encumbrances, equities or
         claims.  Other than Brocade Communications Switzerland Sarl, the
         Company has no subsidiaries that are "significant subsidiaries" as
         defined in Rule 1-02(w) of Regulation S-X of the Securities Act (a
         "Significant Subsidiary").

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

                  (e)  The authorized capital stock of the Company conforms in
         all material respects as to legal matters to the description thereof
         contained in the Memorandum.

                                      2

<PAGE>

                  (f)  The shares of common stock outstanding on the date hereof
         have been duly authorized and are validly issued, fully paid and
         non-assessable.

                  (g)  The Securities have been duly authorized and, when
         executed and authenticated in accordance with the provisions of the
         Indenture and delivered to and paid for by the Initial Purchasers in
         accordance with the terms of this Agreement, will be valid and
         binding obligations of the Company, enforceable in accordance with
         their terms, subject to the effects of applicable bankruptcy,
         insolvency and similar laws affecting creditors' rights generally and
         general principles of equity, and, subject to Section 1(i) below,
         will be entitled to the benefits of the Indenture and the
         Registration Rights Agreement.

                  (h)  The Underlying Securities issuable upon conversion of the
         Securities have been duly authorized and reserved and, when issued
         upon conversion of the Securities in accordance with the terms of the
         Securities, will be validly issued, fully paid and non-assessable,
         and the issuance of the Underlying Securities will not be subject to
         any preemptive or similar rights.

                  (i)  Each of the Indenture and Registration Rights Agreement
         has been duly authorized, and when executed and delivered by the
         Company and the counterparties thereto, is a valid and binding
         agreement of, the Company, enforceable in accordance with its terms,
         subject to applicable bankruptcy, insolvency or similar laws
         affecting creditors' rights generally and general principles of
         equity and except as rights to indemnification and contribution under
         the Registration Rights Agreement may be limited under applicable law.

                  (j)  The execution and delivery by the Company of, and the
         performance by the Company of its obligations under, this Agreement,
         the Indenture, the Registration Rights Agreement and the Securities do
         not and will not contravene (i) any provision of applicable law, (ii)
         the certificate of incorporation or by-laws of the Company, (iii) any
         agreement or other instrument binding upon the Company or (iv) any of
         its subsidiaries that is material to the Company and its
         subsidiaries, taken as a whole, or any judgment, order or decree of
         any governmental body, agency or court having jurisdiction over the
         Company or any subsidiary, except in the case of clauses (iii) and
         (iv), for any such contraventions that would not have a material
         adverse effect on the Company and its subsidiaries taken as a whole.
         No consent, approval, authorization or order of, or qualification
         with, any governmental body or agency is required for the performance
         by the Company of its obligations under this Agreement, the
         Indenture, the Registration Rights Agreement or the Securities,
         except (i) such as may be required by the securities or Blue Sky laws
         of the various states in connection with the offer and sale of the
         Securities, (ii) such as may be required by Federal and state
         securities laws with respect to the Company's obligations under the
         Registration Rights Agreement, (iii) such consents, approvals,
         authorizations, orders and decrees or qualifications which if not
         obtained would not have a material adverse effect on the Company and
         its subsidiaries, taken as a whole, and (iv) for qualification of the
         Indenture under the Trust Indenture Act of 1939, as amended (the
         "1939 Act").

                                      3

<PAGE>

                  (k)     Since July 28, 2001, there has not occurred any event
         or condition that has had, or is reasonably likely to have, a material
         adverse change in the condition, financial or otherwise, or in the
         earnings, business or operations of the Company and its subsidiaries,
         taken as a whole, other than as set forth in the Memorandum.

                  (l)     There are no legal or governmental proceedings pending
         or threatened to which the Company or any of its Significant
         Subsidiaries is a party or to which any of the properties of the
         Company or any of its Significant Subsidiaries is subject other than
         proceedings accurately described in all material respects in the
         Memorandum and proceedings that would not have a material adverse
         effect on the Company and its subsidiaries, taken as a whole, or on
         the power or ability of the Company to perform its obligations under
         this Agreement, the Indenture, the Registration Rights Agreement or
         the Securities or to consummate the transactions contemplated by the
         Memorandum.

                  (m)     The Company and its subsidiaries (i) are in compliance
         with any and all applicable foreign, federal, state and local 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"), (ii) have received
         all permits, licenses or other approvals required of them under
         applicable Environmental Laws to conduct their respective businesses
         and (iii) are in compliance with all terms and conditions of any such
         permit, license or approval, except where such noncompliance with
         Environmental Laws, failure to receive required permits, licenses or
         other approvals or failure to comply with the terms and conditions of
         such permits, licenses or approvals would not, singly or in the
         aggregate, have a material adverse effect on the Company and its
         subsidiaries, taken as a whole.

                  (n)     Neither the Company nor any of its Significant
         Subsidiaries is liable for any costs or liabilities associated with
         Environmental Laws (including, without limitation, any capital or
         operating expenditures required for clean-up, closure of properties
         or compliance with Environmental Laws or any permit, license or
         approval, any related constraints on operating activities and any
         potential liabilities to third parties) which could reasonably be
         expected to, singly or in the aggregate, have a material adverse
         effect on the Company and its subsidiaries, taken as a whole.

                  (o)     The Company has good and marketable title in fee
         simple to all real property and good and marketable title to all
         personal property owned by it which is material to the business of the
         Company free and clear of all liens, encumbrances and defects except
         such liens, encumbrances and defects that do not materially affect the
         value of such property and do not interfere with the use made and
         proposed to be made of such property by the Company; and any real
         property and buildings held under lease by the Company are held by
         them under valid, subsisting and enforceable leases with such
         exceptions as are not material and do not materially interfere with
         the use made and proposed to be made of such property and buildings
         by the Company, except as described in the Memorandum.

                  (p)     The Company and its subsidiaries own or possess
         adequate licenses or other rights to use all material patents,
         copyrights, trademarks, service marks, trade

                                      4

<PAGE>

         names, technology and know-how (the "Intellectual Property")
         necessary to conduct their respective businesses in the manner
         described in the Memorandum or could obtain such licenses or rights
         on terms that would not have a material adverse effect on the Company
         and its subsidiaries, taken as a whole, and, except as disclosed in
         the Memorandum, neither of the Company nor any of its subsidiaries
         has received any notice of infringement of or conflict with asserted
         rights of others with respect to any Intellectual Property which
         could reasonably be expected to have a material adverse effect on the
         Company and its subsidiaries, taken as a whole.

                  (q)     No material labor dispute with the employees of the
         Company exists, except as described in the Memorandum, or, to the
         knowledge of the Company, is imminent; and without conducting any
         independent investigation, the Company is not aware of any existing
         or overtly threatened labor disturbance by the employees of any of
         its principal suppliers, manufacturers or contractors that could
         reasonably be expected to have a material adverse effect on the
         Company.

                  (r)     The Company is 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 it is
         engaged; the Company has not been refused any insurance coverage
         sought or applied for; and the Company does not have 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 on
         the Company, except as described in the Memorandum.

                  (s)     The Company possesses all certificates, authorizations
         and permits issued by the appropriate federal, state or foreign
         regulatory authorities necessary to conduct its business, except as
         would not have a material adverse effect on the Company and its
         subsidiaries, taken as a whole and the Company has not received any
         notice of proceedings relating to the revocation or modification of
         any such certificate, authorization or permit which, singly or in the
         aggregate, if the subject of an unfavorable decision, ruling or
         finding, would have a material adverse effect on the Company, except
         as described in the Memorandum.

                  (t)     The Company maintains 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 and to maintain asset
         accountability; and (iii) access to financial assets is permitted
         only in accordance with management's general or specific
         authorization.

                  (u)     The Company has filed all foreign, federal, state and
         local 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 on the Company) and has
         paid all taxes required to be paid by it and any other assessment,
         fine or penalty levied against it, to the extent that any of the
         foregoing is due and payable, except for any such

                                      5

<PAGE>

         assessment, fine or penalty that is currently being contested in good
         faith or as could not reasonably be expected to have a material adverse
         effect on the Company.

                  (v)     The Company has fulfilled its obligations, if any,
         under the minimum funding standards of Section 302 of the United
         States Employee Retirement Income Security Act of 1974 ("ERISA") and
         the regulations and published interpretations thereunder with respect
         to each "plan" (as defined in Section 3(3) of ERISA and such
         regulations and published interpretations) in which employees of the
         Company are eligible to participate.  Each such plan is in compliance
         in all respects with the presently applicable provisions of ERISA and
         such regulations and published interpretations, except where the
         failure to so comply could not reasonably be expected, individually
         or in the aggregate, to have a material adverse effect on the
         Company.  The Company has not incurred any unpaid liability to the
         Pension Benefit Guaranty Corporation (other than for the payment of
         premiums in the ordinary course) or to any such plan under Title IV
         of ERISA.

                  (w)     The Company and each of its subsidiaries possess all
         consents, approvals, orders, certificates, authorizations and permits
         issued by, and have made all declarations and filings with, all
         appropriate federal, state or foreign governmental or self regulatory
         authorities and all courts and other tribunals necessary to conduct
         their respective businesses and to own, lease, license and use its
         properties in the manner described in the Memorandum, except to the
         extent that the failure to obtain or file would not have a material
         adverse effect on the Company and its subsidiaries, taken as a whole,
         and neither the Company nor any of its subsidiaries has received any
         notice of proceedings relating to the revocation or modification of
         any such consent, approval, order, certificate, authorization or
         permit that, singly or in the aggregate, if the subject of any
         unfavorable decision, ruling or finding, or failure to obtain or
         file, would have a material adverse effect on the Company and its
         subsidiaries, taken as a whole.

                  (x)     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 Memorandum will not be, required
         to register as an "investment company" as such term are defined in
         the Investment Company Act of 1940, as amended.

                  (y)     Neither the Company nor any affiliate (as defined in
         Rule 501(b) of Regulation D under the Securities Act, an "Affiliate")
         of the Company has directly, or through any agent (other than the
         Initial Purchasers), (i) sold, offered for sale, solicited offers to
         buy or otherwise negotiated in respect of, any security (as defined
         in the Securities Act) which is or will be integrated with the sale
         of the Securities in a manner that would require the registration
         under the Securities Act of the Securities or (ii) offered, solicited
         offers to buy or sold the Securities by any form of general
         solicitation or general advertising (as those terms are used in
         Regulation D under the Securities Act) or in any manner involving a
         public offering within the meaning of Section 4(2) of the Securities
         Act.

                  (z)  It is not necessary in connection with the offer, sale
         and delivery of the Securities to the Initial Purchasers in the
         manner contemplated by this Agreement to

                                      6

<PAGE>

         register the Securities under the Securities Act or to qualify the
         Indenture under the 1939 Act.

                  (aa)    The Securities satisfy the requirements set forth in
         Rule 144A(d)(3) under the Securities Act.

                  (bb)     There are no contracts, agreements or understandings
         between the Company and any person granting such person the right to
         require the Company to include such securities with the Securities
         registered pursuant to the Registration Rights Agreement, which rights
         have not been waived.

                  (cc)    Neither the Company nor any of its subsidiaries has
         taken, directly or indirectly, any action which was intentionally
         designed to, or which might reasonably be expected to cause, or result
         in stabilization or manipulation of the prices of any security of the
         Company to facilitate the sale or resale of the Securities.

         2.  Agreements to Sell and Purchase. The Company hereby agrees to sell
to the several Initial Purchasers, and each Initial Purchaser, upon the basis
of the representations and warranties herein contained, but subject to the
conditions hereinafter stated, agrees, severally and not jointly, to purchase
from the Company the respective principal amount of Firm Securities set forth
in Schedule I hereto opposite its name at a purchase price of 97.75 % of the
principal amount at maturity thereof (the "Purchase Price") plus accrued
interest, if any, to the Closing Date. Promptly following the Closing Date,
you, on behalf of the Initial Purchasers, shall reimburse the Company of all
reasonable expenses paid by the Company in connection with the offering of
securities and transactions contemplated by this Purchase Agreement, including
pursuant to Section 6(e) hereof.

         On the basis of the representations and warranties contained in this
Agreement, and subject to its terms and conditions, the Company agrees to sell
to the Initial Purchasers the Additional Securities, and the Initial Purchasers
shall have a one-time right to purchase, severally and not jointly, up to $
50,000,000.00 principal amount of Additional Securities at the Purchase Price
plus accrued interest, if any, to the date of payment and delivery. If you, on
behalf of the Initial Purchasers, elect to exercise such option, you shall so
notify the Company in writing not later than 30 days after the date of this
Agreement, which notice shall specify the principal amount of Additional
Securities to be purchased by the Initial Purchasers and the date on which such
Additional Securities are to be purchased. Such date may be the same as the
Closing Date but not earlier than the Closing Date nor later than ten business
days after the date of such notice. Additional Securities may be purchased as
provided in Section 4 solely for the purpose of covering exercises of the
option made in connection with the offering of the Firm Securities. If any
Additional Securities are to be purchased, each Initial Purchaser agrees,
severally and not jointly, to purchase the principal amount of Additional
Securities (subject to such adjustments to eliminate fractional Securities as
you may determine) that bears the same proportion to the total principal amount
of Additional Securities to be purchased as the principal amount of Firm
Securities set forth in Schedule I opposite the name of such Initial Purchaser
bears to the total principal amount of Firm Securities.

         The Company hereby agrees that, without the prior written consent of
Morgan Stanley &

                                      7

<PAGE>

Co. Incorporated on behalf of the Initial Purchasers, it will not, during the
period beginning on the date hereof and ending February 15, 2002 (the
"Expiration Date") (i) offer, pledge, sell, contract to sell, sell any option
or contract to purchase, purchase any option or contract to sell, grant any
option, right or warrant to purchase, lend, or otherwise transfer or dispose
of, directly or indirectly, any shares of common stock or any securities
convertible into or exercisable or exchangeable for common stock or (ii) enter
into any swap or other arrangement that transfers to another, in whole or in
part, any of the economic consequences of ownership of the common stock,
whether any such transaction described in clause (i) or (ii) above is to be
settled by delivery of common stock or such other securities, in cash or
otherwise. The foregoing sentence shall not apply to (A) the issuance and sale
of the Firm Securities, (B) the issuance of the Underlying Securities, (C) the
issuance by the Company of shares of common stock upon the exercise of an
option or a warrant or the conversion of a security, (D) the granting of
additional options or restricted stock under the Company's existing employee
benefit plans, (E) the issuance of shares of common stock by the Company in
connection with the acquisitions of other companies or businesses by the
Company, (F) the issuance of shares of common stock or warrants to acquire
common stock in connection with strategic transactions or financing
arrangements by the Company, (G) sales or other transfers by the Company's
executive officers and directors collectively in an amount not to exceed
1,000,000 shares of the Company's common stock, (H) transactions by the
Company's executive officers and directors relating to shares of the Company's
common stock or other securities acquired in open market transactions after the
completion of the transactions described in the Memorandum, (I) the exercise of
stock options granted by the Company, (J) transfers by gift, will or intestacy
and transfers to related parties and (K) transactions relating to shares of
common stock or other securities acquired in open market transactions after the
completion of the offering of the Securities; provided, however, with respect
to clauses (E), (F) and (J) that if any common stock is issued prior to the
Expiration Date or if any securities convertible into common stock are issued
that are convertible into common stock prior to the Expiration Date, the
recipient thereof shall agree, until February 15, 2002, to comply with
subsections (i) and (ii) above, subject to the same exceptions granted to the
Company's directors and executive officers as set forth in the Lock Up Letter
attached hereto as Exhibit C.
                   ---------

         3.  Terms of Offering. You have advised the Company that the Initial
Purchasers will make an offering of the Securities purchased by the Initial
Purchasers hereunder on the terms to be set forth in the Memorandum, as soon as
practicable after this Agreement is entered into as in your judgment is
advisable.

         4.  Payment and Delivery. Payment for the Firm Securities shall be made
to the Company in Federal or other funds immediately available by wire transfer
to an account specified in advance by the Company against delivery of such Firm
Securities for the respective accounts of the several Initial Purchasers at a
closing to be held at the offices of Wilson Sonsini Goodrich & Rosati, a
Professional Corporation, in Palo Alto, California at 7:00 a.m., Palo Alto
time, on December 21, 2001, or at such other time on the same or such other
date, not later than December 24, 2001, as shall be mutually designated in
writing by you and the Company. The time and date of such payment are
hereinafter referred to as the "Closing Date."

         Payment for any Additional Securities shall be made to the Company in
Federal or other funds immediately available by wire transfer to an account
specified in advance by the Company

                                      8

<PAGE>

against delivery of such Additional Securities for the respective accounts of
the several Initial Purchasers at 7:00 a.m., Palo Alto time, on the date
specified in the notice described in Section 2 or at such other time on the
same or on such other date, in any event not later than January 17, 2002, as
shall be mutually designated in writing by you and the Company. The time and
date of such payment are hereinafter referred to as the "Option Closing Date."

         Certificates for the Securities shall be in definitive form or global
form, as specified by you, and registered in such names and in such
denominations as you shall request in writing not later than one full business
day prior to the Closing Date or the Option Closing Date, as the case may be.
The certificates evidencing the Securities shall be delivered to you on the
Closing Date or the Option Closing Date, as the case may be, for the respective
accounts of the several Initial Purchasers, with any transfer taxes payable in
connection with the transfer of the Securities to the Initial Purchasers duly
paid, against payment of the Purchase Price therefore plus accrued interest, if
any, to the date of payment and delivery.

         5.  Conditions to the Initial Purchasers' Obligations. The several
obligations of the Initial Purchasers to purchase and pay for the Firm
Securities on the Closing Date are subject to the following conditions:

                  (a)     Subsequent to the execution and delivery of this
         Agreement and prior to the Closing Date, there shall not have
         occurred any change, or any development involving a prospective
         change, in the condition, financial or otherwise, or in the earnings,
         business or operations of the Company and its subsidiaries, taken as
         a whole, from that set forth in the Memorandum that, in your
         judgment, is material and adverse and that makes it, in your
         judgment, impracticable to market the Securities on the terms and in
         the manner contemplated in the Memorandum.

                  (b)     The Initial Purchasers shall have received on the
         Closing Date a certificate, dated the Closing Date and signed by an
         executive officer of the Company, to the effect set forth in Section
         5(a) and to the effect that the representations and warranties of the
         Company contained in this Agreement are true and correct as of the
         Closing Date and that the Company has complied with all of the
         agreements and satisfied all of the conditions on its part to be
         performed or satisfied hereunder on or before the Closing Date. The
         officer signing and delivering such certificate may rely upon the
         best of his or her knowledge as to proceedings threatened.

                  (c)     The Initial Purchasers shall have received on the
         Closing Date an opinion of Wilson Sonsini Goodrich & Rosati,
         Professional Corporation, outside counsel for the Company and the
         Geneva office of Baker & McKenzie, dated the Closing Date, to the
         effect set forth in Exhibit A-1 and Exhibit A-2, respectively. Such
         opinions shall be rendered to the Initial Purchasers at the request
         of the Company and shall so state therein.

                  (d)   The Initial Purchasers shall have received on the
         Closing Date an opinion of Gray Cary Ware & Freidenrich LLP, counsel
         for the Initial Purchasers, dated the Closing Date, to the effect set
         forth in Exhibit B.

                                      9

<PAGE>

                  (e)     The Initial Purchasers shall have received on each of
         the date hereof and the Closing Date a letter, dated the date hereof
         or the Closing Date, as the case may be, in form and substance
         reasonably satisfactory to the Initial Purchasers, from Arthur
         Andersen, independent public accountants, containing statements and
         information of the type ordinarily included in accountants' "comfort
         letters" to underwriters with respect to the financial statements and
         certain financial information contained in or incorporated by
         reference into the Memorandum; provided that the letter delivered on
         the Closing Date shall use a "cut-off date" not earlier than the date
         hereof.

                  (f)     The "lock-up" agreements, each substantially in the
         form of Exhibit C hereto, between you and certain executive
         shareholders, officers and directors of the Company relating to sales
         and certain other dispositions of shares of common stock or certain
         other securities, delivered to you on or before the date hereof,
         shall be in full force and effect on the Closing Date.

         The several obligations of the Initial Purchasers to purchase
Additional Securities hereunder are subject to the delivery to you on the
Option Closing Date of such documents as you may reasonably request with
respect to the good standing of the Company, the due authorization, execution
and authentication and issuance of the Additional Securities and other matters
related to the execution and authentication and issuance of the Additional
Securities.

         6.  Covenants of the Company. In further consideration of the
agreements of the Initial Purchasers contained in this Agreement, the Company
covenants with each Initial Purchaser as follows:

                  (a)     To furnish to you in New York City, without charge,
         prior to 10:00 a.m.  New York City time on the business day next
         succeeding the date of this Agreement and during the period mentioned
         in Section 6(c), as many copies of the Memorandum, any documents
         incorporated by reference therein and any supplements and amendments
         thereto as you may reasonably request.

                  (b)     Before amending or supplementing the Memorandum, to
         furnish to you a copy of each such proposed amendment or supplement
         and not to use any such proposed amendment or supplement to which you
         reasonably object.

                  (c)     If, during such period after the date hereof and prior
         to the date on which all of the Securities shall have been sold by
         the Initial Purchasers, any event shall occur or condition exist as a
         result of which it is necessary to amend or supplement the Memorandum
         in order to make the statements therein, in the light of the
         circumstances when the Memorandum is delivered to a purchaser, not
         misleading, or if, in the reasonable opinion of counsel for the
         Initial Purchasers or counsel for the Company, it is necessary to
         amend or supplement the Memorandum to comply with applicable law,
         forthwith to prepare and furnish, at its own expense, to the Initial
         Purchasers, either amendments or supplements to the Memorandum so
         that the statements in the Memorandum as so amended or supplemented
         will not, in the light of the circumstances when the Memorandum is
         delivered to a purchaser, be misleading or so that the Memorandum, as
         amended or supplemented, will comply with applicable law.

                                      10

<PAGE>

                  (d)     To endeavor to qualify the Securities for offer and
         sale under the securities or Blue Sky laws of such jurisdictions as
         you shall reasonably request; provided that in connection therewith
         the Company shall not be required to qualify to conduct business as a
         foreign corporation or to execute a general consent to service of
         process, other than as to matters and transactions relating to the
         Memorandum, in any jurisdictions.

                  (e)     Subject to Section 2 hereof, whether or not the
         transactions contemplated in this Agreement are consummated or this
         Agreement is terminated, to pay or cause to be paid all expenses
         incident to the performance of its obligations under this Agreement,
         including: (i) the fees, disbursements and expenses of the Company's
         counsel and the Company's accountants in connection with the issuance
         and sale of the Securities and all other fees or expenses in
         connection with the preparation of the Memorandum and all amendments
         and supplements thereto, including all printing costs associated
         therewith, and the delivering of copies thereof to the Initial
         Purchasers, in the quantities herein above specified, (ii) all costs
         and expenses related to the transfer and delivery of the Securities
         to the Initial Purchasers, including any transfer or other taxes
         payable thereon, (iii) the cost of printing or producing any Blue Sky
         or legal investment memorandum in connection with the offer and sale
         of the Securities under state securities laws and all expenses in
         connection with the qualification of the Securities for offer and
         sale under state securities laws as provided in Section 6(d) hereof,
         including filing fees and the reasonable fees and disbursements of
         counsel for the Initial Purchasers in connection with such
         qualification and in connection with the Blue Sky or legal investment
         memorandum, (iv) any fees charged by rating agencies for the rating
         of the Securities, (v) the fees and expenses, if any, incurred in
         connection with the admission of the Securities for trading in Portal
         or any appropriate market system, (vi) the costs and charges of the
         Trustee and any transfer agent, registrar or depositary, (vii) the
         cost of the preparation, issuance and delivery of the Securities, and
         (viii) all other cost and expenses incident to the performance of the
         obligations of the Company hereunder for which provision is not
         otherwise made in this Section.  It is understood, however, that
         except as provided in this Section, Section 8, and the last paragraph
         of Section 10, the Initial Purchasers will pay all of their costs and
         expenses, including fees and disbursements of their counsel, transfer
         taxes payable on resale of any of the Securities by them and any
         advertising expenses connected with any offers they may make.

                  (f)     Neither the Company nor any Affiliate will sell, offer
         for sale or solicit offers to buy or otherwise negotiate in respect
         of any security (as defined in the Securities Act) which could
         reasonably be integrated under applicable law with the sale of the
         Securities in a manner which would require the registration under the
         Securities Act of the Securities.

                  (g)     Neither the Company nor any Affiliate will solicit any
         offer to buy or offer or sell the Securities or the Underlying
         Securities by means of any form of general solicitation or general
         advertising (as those terms are used in Regulation D under the
         Securities Act) or in any manner involving a public offering within
         the meaning of Section 4(2) of the Securities Act.

                                      11

<PAGE>

                  (h)     While any of the Securities or the Underlying
         Securities remain "restricted securities" within the meaning of the
         Securities Act, to make available, upon request, to any seller of
         such Securities the information specified in Rule 144A(d)(4) under
         the Securities Act, unless the Company is then subject to Section 13
         or 15(d) of the Exchange Act.

                  (i)     If requested by you, to use its best efforts to permit
         the Securities to be designated Portal securities in accordance with
         the rules and regulations adopted by the National Association of
         Securities Dealers, Inc. relating to trading in the Portal Market.

                  (j)     During the period of two years after the Closing Date
         or the Option Closing Date, if later, the Company will not, and will
         not permit any of its affiliates (as defined in Rule 144 under the
         Securities Act) to, resell any of the Securities or the Underlying
         Securities which constitute "restricted securities" under Rule 144
         that have been reacquired by any of them.

                  (k)     Not to take any action prohibited by Regulation M
         under the Exchange Act in connection with the distribution of the
         Securities contemplated hereby.

         7.  Offering of Securities; Restrictions on Transfer. (a) Each Initial
Purchaser, severally and not jointly, represents and warrants that such Initial
Purchaser is a qualified institutional buyer as defined in Rule 144A under the
Securities Act (a "QIB"). Each Initial Purchaser, severally and not jointly,
agrees with the Company that (i) it will not solicit offers for, or offer or
sell, such Securities by any form of general solicitation or general
advertising (as those terms are used in Regulation D under the Securities Act)
or in any manner involving a public offering within the meaning of Section 4(2)
of the Securities Act and (ii) it will solicit offers for such Securities only
from, and will offer such Securities only to, persons that it reasonably
believes to be QIBs.

         8.  Indemnity and Contribution.

                  (a)     The Company agrees to indemnify and hold harmless each
         Initial Purchaser and each person, if any, who controls any Initial
         Purchaser within the meaning of either Section 15 of the Securities
         Act or Section 20 of the Exchange Act from and against any and all
         losses, claims, damages and liabilities (including, without
         limitation, any legal or other expenses reasonably incurred in
         connection with defending or investigating any such action or claim)
         caused by any untrue statement or alleged untrue statement of a
         material fact contained in the Memorandum (as amended or supplemented
         if the Company shall have furnished any amendments or supplements
         thereto), or caused by any omission or alleged omission to state
         therein a material fact necessary to make the statements therein in
         the light of the circumstances under which they were made not
         misleading, except insofar as such losses, claims, damages or
         liabilities are caused by any such untrue statement or omission or
         alleged untrue statement or omission based upon information relating
         to any Initial Purchaser furnished to the Company in writing by such
         Initial Purchaser through you expressly for use therein.

                                      12

<PAGE>

                  (b)     Each Initial Purchaser agrees, severally and not
         jointly, to indemnify and hold harmless the Company, its directors,
         its officers and each person, if any, who controls the Company within
         the meaning of either Section 15 of the Securities Act or Section 20
         of the Exchange Act to the same extent as the foregoing indemnity
         from the Company to such Initial Purchaser, but only with reference
         to information relating to such Initial Purchaser furnished to the
         Company in writing by such Initial Purchaser through you expressly
         for use in the Memorandum or any amendments or supplements thereto.

                  (c)     In case any proceeding (including any governmental
         investigation) shall be instituted involving any person in respect of
         which indemnity may be sought pursuant to Section 8(a) or 8(b), such
         person (the "indemnified party") shall promptly notify the person
         against whom such indemnity may be sought (the "indemnifying party")
         in writing and the indemnifying party, upon request of the
         indemnified party, shall retain counsel reasonably satisfactory to
         the indemnified party to represent the indemnified party and any
         others the indemnifying party may designate in such proceeding and
         shall pay the fees and disbursements of such counsel related to such
         proceeding. In any such proceeding, any indemnified party shall have
         the right to retain its own counsel, but the fees and expenses of
         such counsel shall be at the expense of such indemnified party unless
         (i) the indemnifying party and the indemnified party shall have
         mutually agreed to the retention of such counsel or (ii) the named
         parties to any such proceeding (including any impleaded parties)
         include both the indemnifying party and the indemnified party and
         representation of both parties by the same counsel would be
         inappropriate due to actual or potential differing interests between
         them. It is understood that the indemnifying party shall not, in
         respect of the legal expenses of any indemnified party in connection
         with any proceeding or related proceedings in the same jurisdiction,
         be liable for the fees and expenses of more than one separate firm
         (in addition to any local counsel) for all such indemnified parties
         and that all such fees and expenses shall be reimbursed as they are
         incurred. Such firm shall be designated in writing by Morgan Stanley
         & Co.  Incorporated, in the case of parties indemnified pursuant to
         Section 8(a), and by the Company, in the case of parties indemnified
         pursuant to Section 8(b). The indemnifying party shall not be liable
         for any settlement of any proceeding effected without its written
         consent, but if settled with such consent or if there be a final
         judgment for the plaintiff, the indemnifying party agrees to
         indemnify the indemnified party from and against any loss or
         liability by reason of such settlement or judgment.  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 the second
         and third sentences of this paragraph, 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 and (ii) 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 of any pending or threatened proceeding in respect of
         which any indemnified party is or could have been a party and
         indemnity could have been sought hereunder by such indemnified party,
         unless such settlement includes an unconditional release of such
         indemnified party from all liability on claims that are the subject
         matter of such proceeding.

                                      13

<PAGE>

                  (d)     To the extent the indemnification provided for in
         Section 8(a) or 8(b) is unavailable to an indemnified party or
         insufficient in respect of any losses, claims, damages or liabilities
         referred to therein, then each indemnifying party under such
         paragraph, in lieu of indemnifying such indemnified party thereunder,
         shall contribute to the amount paid or payable by such indemnified
         party as a result of such losses, claims, damages or liabilities (i)
         in such proportion as is appropriate to reflect the relative benefits
         received by the Company on the one hand and the Initial Purchasers on
         the other hand from the offering of the Securities or (ii) if the
         allocation provided by clause (i) of this subsection is not permitted
         by applicable law, in such proportion as is appropriate to reflect
         not only the relative benefits referred to in clause (i) of this
         subsection but also the relative fault of the Company on the one hand
         and of the Initial Purchasers on the other hand in connection with
         the statements or omissions that resulted in such losses, claims,
         damages or liabilities, as well as any other relevant equitable
         considerations. The relative benefits received by the Company on the
         one hand and the Initial Purchasers on the other hand in connection
         with the offering of the Securities shall be deemed to be in the same
         respective proportions as the net proceeds from the offering of the
         Securities (before deducting expenses) received by the Company and
         the total discounts and commissions received by the Initial
         Purchasers, in each case as set forth in the Memorandum, bear to the
         aggregate offering price of the Securities. The relative fault of the
         Company on the one hand and of the Initial Purchasers on the other
         hand shall be determined by reference to, among other things, whether
         the untrue or alleged untrue statement of a material fact or the
         omission or alleged omission to state a material fact relates to
         information supplied by the Company or by the Initial Purchasers and
         the parties' relative intent, knowledge, access to information and
         opportunity to correct or prevent such statement or omission. The
         Initial Purchasers' respective obligations to contribute pursuant to
         this Section 8 are several in proportion to the respective principal
         amount of Securities they have purchased hereunder, and not joint.

                  (e)     The Company and the Initial Purchasers agree that it
         would not be just or equitable if contribution pursuant to this
         Section 8 were determined by pro rata allocation (even if the Initial
         Purchasers were treated as one entity for such purpose) or by any
         other method of allocation that does not take account of the
         equitable considerations referred to in Section 8(d). The amount paid
         or payable by an indemnified party as a result of the losses, claims,
         damages and liabilities referred to in Section 8(d) shall be deemed
         to include, subject to the limitations set forth above, any legal or
         other expenses reasonably incurred by such indemnified party in
         connection with investigating or defending any such action or claim.
         Notwithstanding the provisions of this Section 8, no Initial
         Purchaser shall be required to contribute any amount in excess of the
         amount by which the total price at which the Securities resold by it
         in the initial placement of such Securities were offered to investors
         exceeds the amount of any damages that such Initial Purchaser has
         otherwise been required to pay by reason of such untrue or alleged
         untrue statement or omission or alleged omission. No person guilty of
         fraudulent misrepresentation (within the meaning of Section 11(f) of
         the Securities Act) shall be entitled to contribution from any person
         who was not guilty of such fraudulent misrepresentation. The remedies
         provided for in this Section 8 are not exclusive and shall not limit
         any rights or remedies which may otherwise be available to any
         indemnified party at law or in equity.

                                      14

<PAGE>

                  (f)     The indemnity and contribution provisions contained in
         this Section 8 and the representations, warranties and other
         statements of the Company contained in this Agreement shall remain
         operative and in full force and effect regardless of (i) any
         termination of this Agreement, (ii) any investigation made by or on
         behalf of any Initial Purchaser or any person controlling any Initial
         Purchaser or by or on behalf of the Company, its officers or
         directors or any person controlling the Company and (iii) acceptance
         of and payment for any of the Securities.

         9.  Termination. This Agreement shall be subject to termination by
notice given by you to the Company, if (a) after the execution and delivery of
this Agreement and prior to the Closing Date (i) trading generally shall have
been suspended or materially limited on or by, as the case may be, any of the
New York Stock Exchange, the American Stock Exchange, the National Association
of Securities Dealers, Inc., the Chicago Board of Options Exchange, the Chicago
Mercantile Exchange or the Chicago Board of Trade, (ii) trading of any
securities of the Company shall have been suspended on any exchange or in any
over-the-counter market, (iii) a general moratorium on commercial banking
activities in New York shall have been declared by either Federal or New York
State authorities or (iv) there shall have occurred any outbreak or escalation
of hostilities or any change in financial markets or any calamity or crisis
that, in your judgment, is material and adverse and (b) in the case of any of
the events specified in clauses 9(a)(i) through 9(a)(iv), such event, singly or
together with any other such event, makes it, in your judgment, impracticable
to market the Securities on the terms and in the manner contemplated in the
Memorandum.

         10. Effectiveness; Defaulting Initial Purchasers.  This Agreement shall
become effective upon the execution and delivery hereof by the parties hereto.

         If, on the Closing Date, or the Option Closing Date, as the case may
be, any one or more of the Initial Purchasers shall fail or refuse to purchase
Securities that it or they have agreed to purchase hereunder on such date, and
the aggregate principal amount of Securities which such defaulting Initial
Purchaser or Initial Purchasers agreed but failed or refused to purchase is not
more than one-tenth of the aggregate principal amount of Securities to be
purchased on such date, the other Initial Purchasers shall be obligated
severally in the proportions that the principal amount of Firm Securities set
forth opposite their respective names in Schedule I bears to the aggregate
principal amount of Firm Securities set forth opposite the names of all such
non-defaulting Initial Purchasers, or in such other proportions as you may
specify, to purchase the Securities which such defaulting Initial Purchaser or
Initial Purchasers agreed but failed or refused to purchase on such date;
provided that in no event shall the principal amount of Securities that any
Initial Purchaser has agreed to purchase pursuant to this Agreement be
increased pursuant to this Section 10 by an amount in excess of one-ninth of
such principal amount of Securities without the written consent of such Initial
Purchaser. If, on the Closing Date any Initial Purchaser or Initial Purchasers
shall fail or refuse to purchase Securities which it or they have agreed to
purchase hereunder on such date and the aggregate principal amount of
Securities with respect to which such default occurs is more than one-tenth of
the aggregate principal amount of Firm Securities to be purchased on such date,
and arrangements satisfactory to you and the Company for the purchase of such
Firm Securities are not made within 36 hours after such default, this Agreement
shall terminate without liability on the part of any non-defaulting Initial
Purchaser or of the Company. In any such case either you or the Company

                                      15

<PAGE>

shall have the right to postpone the Closing Date, but in no event for longer
than seven days, in order that the required changes, if any, in the Memorandum
or in any other documents or arrangements may be effected. If, on the Option
Closing Date, any Initial Purchaser or Initial Purchasers shall fail or refuse
to purchase Additional Securities and the aggregate principal amount of
Additional Securities with respect to which such default occurs is more than
one-tenth of the aggregate principal amount of Additional Securities to be
purchased, the non-defaulting Initial Purchasers shall have the option to (a)
terminate their obligation hereunder to purchase Additional Securities or (b)
purchase not less than the principal amount of Additional Securities that such
non-defaulting Initial Purchasers would have been obligated to purchase in the
absence of such default. Any action taken under this paragraph shall not
relieve any defaulting Initial Purchaser from liability in respect of any
default of such Initial Purchaser under this Agreement.

         If this Agreement shall be properly terminated by the Initial
Purchasers, or any of them, because of any failure or refusal on the part of the
Company to comply with the terms or to fulfill any of the conditions of this
Agreement required to be performed or fulfilled by the Company pursuant to this
Agreement, or if for any reason the Company shall be unable to perform its
obligations under this Agreement, the Company will reimburse the Initial
Purchasers or such Initial Purchasers as have so terminated this Agreement with
respect to themselves, severally, for all out-of-pocket expenses (including the
fees and disbursements of their counsel) reasonably incurred by such Initial
Purchasers in connection with this Agreement or the offering contemplated
hereunder.

         11. Counterparts.  This Agreement may be signed in any number of
counterparts, each of which shall be an original, with the same effect as if
the signatures thereto and hereto were upon the same instrument.

         12. Applicable Law.  This Agreement shall be governed by and construed
in accordance with the internal laws of the State of New York.

         13. Headings.  The headings of the sections of this Agreement have been
inserted for convenience of reference only and shall not be deemed a part of
this Agreement.

                 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      16

<PAGE>

                                             Very truly yours,

                                             BROCADE COMMUNICATIONS
                                             SYSTEMS, INC.

                                             By: /s/ Antonio Canova
                                             ---------------------------
                                             Name: Antonio Canova
                                             Title: Chief Financial officer

Accepted as of the date hereof

Morgan Stanley & Co. Incorporated
Goldman, Sachs & Co.
Salomon Smith Barney Inc.
Merrill Lynch, Pierce Fenner and Smith Incorporated

Acting severally on behalf of themselves and
       the several Initial Purchasers named in
       Schedule I hereto.

By:    Morgan Stanley & Co. Incorporated

By:    /s/ David Schwarzbach
       --------------------------
Name:  David Schwarzbach
Title: Vice President

                     [Signature Page to Purchase Agreement]

<PAGE>

                                                                      SCHEDULE I

                                                       Number of Firm Securities
             Initial Purchaser                              to be Purchased

Morgan Stanley & Co. Incorporated....................  $200,000,000.00
Goldman Sachs & Co...................................  $200,000,000.00
Salomon Smith Barney Inc. ...........................   $50,000,000.00
Merrill Lynch, Pierce, Fenner and Smith
Incorporated ........................................   $50,000,000.00

     Total...........................................  $500,000,000.00

<PAGE>

                                                                     EXHIBIT A-1

                       OPINION OF COUNSEL FOR THE COMPANY

         The opinion of the counsel for the Company, to be delivered pursuant to
Section 5(c) of the Purchase Agreement shall be to the effect that:

           1.  The Company has been duly incorporated, is validly existing as a
               corporation in good standing under the laws of Delaware, has the
               corporate power and authority to own its property and to conduct
               its business as described in the Memorandum and is duly qualified
               to transact business and is in good standing in each jurisdiction
               in which the conduct of its business or its ownership or leasing
               of property requires such qualification, except to the extent
               that the failure to be so qualified or be in good standing would
               not have a material adverse effect on the Company and its
               subsidiaries, taken as a whole.

           2.  The Purchase Agreement has been duly authorized, executed and
               delivered by the Company.

           3.  The authorized capital stock of the Company conforms in all
               material respects as to legal matters to the description thereof
               contained in the Memorandum.

           4.  The Securities have been duly authorized by the Company and, when
               executed and authenticated in accordance with the provisions of
               the Indenture and delivered to and paid for by the Initial
               Purchasers in accordance with the terms of the Purchase
               Agreement, will be valid and binding obligations of the Company,
               enforceable against the Company in accordance with their terms,
               and will be entitled to the benefits of the Indenture and the
               Registration Rights Agreement.

           5.  The Underlying Securities to be issued upon conversion of the
               Securities have been duly authorized and reserved and, when
               issued upon conversion of the Securities in accordance with the
               terms of the Securities and the Indenture, will be validly
               issued, fully paid and non-assessable, and the issuance of the
               Underlying Securities will not be subject to any preemptive or,
               to our knowledge, similar rights under the Reviewed Agreements.

           6.  Each of the Indenture and the Registration Rights Agreement has
               been duly authorized, executed and delivered by, and is a valid
               and binding agreement of, the Company, enforceable against the
               Company in accordance with its terms.

           7.  The execution and delivery by the Company of, and the performance
               by the Company of its obligations under, the Purchase Agreement,
               the Indenture, the Registration Rights Agreement and the
               Securities do not and will not

                                  A-1-1

<PAGE>

               contravene (i) any provision of applicable law or, (ii) the
               Certificate of Incorporation or Bylaws of the Company, or, (iii)
               to our knowledge, any, order or decree of any governmental body,
               agency or court having jurisdiction over the Company or any
               Significant Subsidiary, and no consent, approval, authorization
               or order of, or qualification or filing with, any governmental
               body or agency is required for the performance by the Company of
               its obligations under the Purchase Agreement, the Indenture, the
               Registration Rights Agreement or the Securities, except such as
               may be required by the securities or Blue Sky laws of the various
               states in connection with the offer and sale of the Securities
               and by Federal and state securities laws with respect to the
               Company's obligations under the Registration Rights Agreement
               expressly contemplated by the provisions thereof, and except
               where such consent, authorization, approval, order or
               qualification, if not obtained, would not have a material adverse
               effect on the Company and its subsidiaries, taken as a whole.

           8.  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 Memorandum, will not be required to
               register as an "investment company" as such term is defined in
               the Investment Company Act of 1940, as amended.

           9.  The statements in the Memorandum under the captions "Description
               of Notes," "Description of Capital Stock," "Plan of Distribution"
               and "Transfer Restrictions," insofar as such statements
               constitute summaries of the legal matters, documents or
               proceedings referred to therein, fairly summarize the matters
               referred to therein in all material respects.

           10. The statements in the Memorandum under the caption "Certain
               Federal Income Tax Considerations," insofar as such statements
               constitute a summary of the United States federal tax laws
               referred to therein, are accurate and fairly summarize the
               matters referred to therein in all material respects.

           11. It is not necessary in connection with the offer, sale and
               delivery of the Securities to the Initial Purchasers under the
               Purchase Agreement or in connection with the initial resale of
               the Securities by the Initial Purchasers in accordance with
               Section 7 of the Purchase Agreement and the Memorandum to
               register the Securities under the Securities Act of 1933, as
               amended, or to qualify the Indenture under the Trust Indenture
               Act of 1939, as amended, it being understood that no opinion is
               expressed as to any subsequent resale of any of the Securities or
               the Underlying Securities issuable upon conversion of any of the
               Securities.

           12. Such counsel does not know of any legal or governmental
               proceedings pending or threatened to which the Company or any of
               its Significant Subsidiaries is a party or to which any of the
               properties of the Company or any of its Significant Subsidiaries
               is subject other than proceedings which

                                  A-1-2

<PAGE>

               such counsel believes are not likely to have a material adverse
               effect on the Company and its subsidiaries, taken as a whole.

           13. Each document of the Company incorporated by reference in the
               Memorandum (except for financial statements and schedules and
               other financial and statistical data included or incorporated by
               reference therein as to which we disclaim any opinion), complied
               as to form when filed with the Commission in all material
               respects with the Exchange Act and the applicable rules and
               regulations of the Commission thereunder.

                                  A-1-3

<PAGE>

                                                                     EXHIBIT A-2

                   OPINION OF FOREIGN COUNSEL FOR THE COMPANY

                The opinion of the Geneva office of Baker & McKenzie, to be
delivered pursuant to Section 5(c) of the Purchase Agreement, shall be to the
effect that:

           1.  The Swiss Company is a limited liability company ("societe a
               responsabilite limitee", "Gesellschaft mit beschrankter Haftung")
               duly incorporated and validly existing under the laws of
               Switzerland and has the corporate power and authority to own its
               property and assets and to conduct its business as currently
               conducted and is duly qualified to conduct its business as
               currently conducted, except to the extent that that the failure
               to be so qualified or in good standing would have no material
               effect on the Swiss Company. There is no notice of appointment in
               respect of a liquidator, receiver, administrator or examiner with
               respect thereto.

           2.  All the stated capital of the Swiss Company, which amounts to CHF
               300,000.- has been validly and fully paid-in. The Swiss Company's
               capital is divided in two, non issued quotas: one quota of CHF
               299,000.- owned by Brocade Communications Luxembourg Sarl and one
               quota of CHF 1,000.- owned by Brocade Communications Systems,
               Inc.

           3.  To such counsel's knowledge, they have not worked on an
               assignment for the Swiss Company where they were informed that
               its quotas have been pledged or subjected to a lien.

                                  A-2-1

<PAGE>

                                                                       EXHIBIT B

                     OPINION OF GRAY CARY WARE & FREIDENRICH

         The opinion of Gray Cary Ware & Freidenrich to be delivered pursuant to
Section 5(d) of the Purchase Agreement shall be to the effect that:

1.       The Purchase Agreement has been duly authorized, executed and delivered
         by the Company.

2.       The Securities have been duly authorized by the Company and, when
         executed and authenticated in accordance with the provisions of the
         Indenture and delivered to and paid for by the Initial Purchasers in
         accordance with the terms of the Purchase Agreement, will be valid and
         binding obligations of the Company, enforceable in accordance with
         their terms subject to applicable bankruptcy, insolvency or similar
         laws affecting creditors' rights generally and general principles of
         equity, and will be entitled to the benefits of the Indenture and the
         Registration Rights Agreement pursuant to which such Securities are to
         be issued.

3.       The Underlying Securities reserved for issuance upon conversion of the
         Securities have been duly authorized and reserved and, when issued upon
         conversion of the Securities in accordance with the terms of the
         Securities, will be validly issued, fully paid and non-assessable, and
         the issuance of the Underlying Securities will not be subject to any
         preemptive or, to such counsel's knowledge, similar rights.

4.       Each of the Indenture and the Registration Rights Agreement has been
         duly authorized, executed and delivered by, and is a valid and binding
         agreement of, the Company, enforceable against the Company in
         accordance with its terms subject to applicable bankruptcy, insolvency
         or similar laws affecting a creditors' rights generally and general
         principles of equity and except as to rights to indemnification and
         contribution under the Registration Rights Agreement may be limited
         under applicable law.

5.       The statements in the Memorandum under the captions "Description of
         Notes," "Description of Capital Stock," "Plan of Distribution" and
         "Transfer Restrictions," insofar as such statements constitute
         summaries of the legal matters, documents or proceedings referred to
         therein, fairly summarize the matters referred to therein.

6.       Such counsel has no reason to believe that (except for financial
         statements and schedules and other financial and statistical data as to
         which such counsel need not express any belief) the Memorandum when
         issued contained, or as of the date such opinion is delivered contains,
         any untrue statement of a material fact or omitted or omits to state a
         material fact necessary in order to make the statements therein, in the
         light of the circumstances under which they were made, not misleading.

                                    B-1

<PAGE>

         With respect to the matters referred to in the paragraph above, such
         counsel's opinion and belief are based upon such counsel's
         participation in the preparation of the Memorandum (and any amendments
         or supplements thereto) and review and discussions of the contents
         thereof (including the review of, but not participation in the
         preparations of, the incorporated documents) but are without
         independent check or verification except as specified.

7.       Based upon the representations, warranties and agreements with the
         agreements of the Company in Sections 1(y), 1(aa), 6(f) and 6(g) of
         the Purchase Agreement and of the Initial Purchasers in Section 7 of
         the Purchase Agreement, it is not necessary in connection with the
         offer, sale and delivery of the Securities to the Initial Purchasers
         under the Purchase Agreement or in connection with the initial resale
         of the Securities by the Initial Purchasers in accordance with
         Section 7 of the Purchase Agreement to register the Securities under
         the Securities Act of 1933, as amended, or to qualify the Indenture
         under the Trust Indenture Act of 1939, as amended, it being understood
         that no opinion is expressed as to any subsequent resale of any of the
         Security or the Underlying Security.

                                    B-2

<PAGE>

                                                                       EXHIBIT C

                             FORM OF LOCK-UP LETTER

                                                               December 17, 2001

Morgan Stanley & Co. Incorporated
Goldman, Sachs & Co.
Merrill Lynch & Co.
Salomon Smith Barney Inc.
c/o Morgan Stanley & Co. Incorporated
1585 Broadway
New York, NY  10036

Dear Sirs and Mesdames:

         The undersigned understands that Morgan Stanley & Co. Incorporated
("Morgan Stanley") proposes to enter into a Purchase Agreement (the "Purchase
Agreement") with Brocade Communications Systems, Inc., a Delaware corporation
(the "Company"), providing for the offering (the "Offering") by the several
Initial Purchasers, including Morgan Stanley (the "Initial Purchasers"), of up
to $550,000,000.00 principal amount of 2 % Convertible Subordinated Notes Due
2007 (the "Securities"). The Securities will be convertible into shares of the
Common Stock, $.001 par value per share, of the Company (the "Common Stock").

         To induce the Initial Purchasers that may participate in the Offering
to continue their efforts in connection with the Offering, the undersigned
hereby agrees that, without the prior written consent of Morgan Stanley on
behalf of the Initial Purchasers, it will not, during the period commencing on
the date hereof and ending February 15, 2002, (1) offer, pledge, sell, contract
to sell, sell any option or contract to purchase, purchase any option or
contract to sell, grant any option, right or warrant to purchase, lend, or
otherwise transfer or dispose of, directly or indirectly, any shares of Common
Stock or any securities convertible into or exercisable or exchangeable for
Common Stock or (2) enter into any swap or other arrangement that transfers to
another, in whole or in part, any of the economic consequences of ownership of
Common Stock, whether any such transaction described in clause (1) or (2) above
is to be settled by delivery of Common Stock or such other securities, in cash
or otherwise. The foregoing sentence shall not apply to (a) sales or other
dispositions of up to an aggregate of 1,000,000 shares of the Company's Common
Stock by the undersigned and all other officers and directors of the Company
that have signed this form of Lock-Up Agreement; (b) transactions relating to
shares of Common Stock or other securities acquired in open market transactions
after the completion of the Offering; (c) exercises of stock options or other
stock purchase rights granted by the company, (d) bona fide gifts, transfers by
will or intestacy, provided that the donees agree in writing to be bound by the
terms hereof; or (e) transfer to members, partners, affiliates, or immediate
family, or transfers to a trust for the benefit of the undersigned or the
undersigned's immediate family, provided that the transferee or trustee of the
trust, on behalf of the trust, as the

                                    C-1

<PAGE>

case may be, agrees in writing to be bound by the terms hereof; provided that in
the case of any transfer or distribution pursuant to clause (d) or (e), each
donee or distributee shall execute and deliver to Morgan Stanley a duplicate
form of this Lock-Up Agreement. In addition, the undersigned agrees that,
without the prior written consent of Morgan Stanley on behalf of the Initial
Purchasers, it will not, during the period commencing on the date hereof and
ending February 20, 2002, make any demand for or exercise any right with respect
to, the registration of any shares of Common Stock or any security convertible
into or exercisable or exchangeable for Common Stock. The undersigned also
agrees and consents to the entry of stop transfer instructions with the
Company's transfer agent and registrar against the transfer of the undersigned's
shares of Common Stock except in compliance with the foregoing restrictions.

         The undersigned understands that the Company and the Initial Purchasers
are relying upon this Lock-Up Agreement in proceeding toward consummation of the
Offering. The undersigned further understands that this Lock-Up Agreement is
irrevocable and shall be binding upon the undersigned's heirs, legal
representatives, successors and assigns.

         Whether or not the Offering actually occurs depends on a number of
factors, including market conditions. Any Offering will only be made pursuant to
the Purchase Agreement, the terms of which are subject to negotiation between
the Company and the Initial Purchasers. If the Purchase Agreement is executed
and subsequent to the execution of the Purchase Agreement, the Purchase
Agreement is terminated, this Lock-Up Agreement shall terminate on the date that
the parties terminate the Purchase Agreement. If the Purchase Agreement has not
been executed by 5:00 P.M. New York time on January 30, 2002, this Lock-Up
Agreement shall automatically terminate at such time.

                                          Very truly yours,

                                          _________________________________
                                         (Name)

                                          _________________________________
                                         (Address)

                                    C-2

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