Document:

Exhibit 10.6

 

Vice-President and Above - Option

 

WATSON Pharmaceuticals, Inc.

AMENDMENT AND RESTATEMENT OF THE 2001
INCENTIVE AWARD PLAN

NOTICE OF GRANT AND SIGNATURE
PAGE

 

Congratulations, you (“Holder”) have been granted an option
to purchase Common Stock of Watson Pharmaceuticals, Inc., a Nevada
corporation (the “Company”).  The Option
is subject to the terms and conditions of the Award Agreement and the Amendment
and Restatement of The 2001 Incentive Award Plan of Watson Pharmaceuticals, Inc.,
as amended from time to time (the “Plan”), which are attached hereto as Exhibit 1-A
and 1-B, and of which this Notice of Grant and Signature Page is a
part.  By signing this Notice of Grant
and Signature Page, you represent and warrant to the Company that you have read
the Award Agreement and the Plan and agree to be bound by their terms.  Capitalized terms not otherwise defined in
this Notice of Grant and Signature Page shall be as defined in the Plan
and the Award Agreement.

 

Subject to the terms of
the Award Agreement and the Plan, the terms of this Option are set forth below:

 

	
  Type of Option:
  Incentive Stock Option

  	
   

  	
  Non-Qualified
  Stock Option

  
	
   

  	
   

  	
   

  
	
  Holder’s Name: [First Name and Last Name]

  	
   

  	
  Total Number of
  Option Shares:

  
	
   

  	
   

  	
   

  
	
  Date of Grant: [Month,
  Day, Year]

  	
   

  	
  Purchase Price
  Per Share: $

  

 

 

 

Subject
to the terms of the Award Agreement and the Plan, this Option shall become
exercisable in accordance with the following schedule: 

 

	
   

  	
   

  	
  This
  Option Shall be Exercisable With Respect to

  
	
   

  	
   

  	
  the
  Following Number of Shares in Each Period

  
	
  On and After This Date

  	
   

  	
  Becoming
  Fully Vested on the Date Shown.

  
	
  Month,
  Day, Year

  	
   

  	
  Number

  
	
  Month,
  Day, Year

  	
   

  	
  Number

  
	
  Month,
  Day, Year

  	
   

  	
  Number

  
	
  Month,
  Day, Year

  	
   

  	
  Number

  
	
  Total
  Shares

  	
   

  	
  Total

  

 

NOTE, schedule does not
reflect cumulative vesting.

 

IN WITNESS WHEREOF, the Company has granted this
Option, subject to the terms set forth herein, on the date of grant specified
above.

 

	
   

  	
  WATSON
  PHARMACEUTICALS, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Allen
  Chao, Ph.D.,

  
	
   

  	
  Chairman
  and Chief Executive Officer

  

 

	
  ACCEPTED:

  	
   

  
	
   

  	
  Note:  This document constitutes the Company’s
  offer to enter into an agreement under the terms set forth herein. This offer
  will expire without further notice at 5 o’clock Pacific Time sixty days
  after the date of grant of the Option set forth above, unless this
  offer is accepted by Holder by the delivery of this original Notice of Grant
  and Signature Page, executed by Holder to the Company on or prior to the
  offer’s expiration date.

  

  

                              GRANT
  NO. 0000XXXX

  
	
   

  	
   

  
	
  Holder’s Signature

  	
   

  
	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Address

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Holder’s
  Taxpayer Identification Number

  	
   

  

 

 

EXHIBIT 1-A

 

AWARD AGREEMENT

 

THIS
AWARD AGREEMENT, dated as of the Date of Grant appearing on the Notice of Grant
and Signature Page hereof, is made by and between Watson Pharmaceuticals, Inc.,
a Nevada corporation (the “Company”), and the Employee whose name and signature
appear on the Notice of Grant and Signature Page hereof (“Holder”).

 

WHEREAS,
the Company wishes to grant Holder
an option (the “Option”)  to purchase
shares of its common stock, par value $.0033 per share (the “Common Stock”),
pursuant to the terms of the Notice of Grant and Signature Page, this Agreement
and the Amendment and Restatement of The 2001 Incentive Award Plan of Watson
Pharmaceuticals, Inc., as amended from time to time (the terms of which
are hereby incorporated by reference and made a part of this Agreement, the “Plan”);
and

 

WHEREAS,
it has been determined that it would be to the advantage and best interest of
the Company and its stockholders to grant Holder the
Option as an inducement to enter into or remain in the service of the Company
or its Subsidiaries and as an incentive for increased efforts during such
service.

 

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

 

ARTICLE I

GRANT OF OPTION

 

Section 1.1
- Grant of Option and Purchase Price. The Company grants to Holder the
option to purchase any part or all of an aggregate of that many shares of
Common Stock as set forth on the Notice of Grant and Signature Page hereto,
upon the terms and conditions set forth in this Agreement.  The per share purchase price of the shares of
Common Stock covered by the Option shall be as set forth on the Notice of Grant
and Signature Page hereto, without commission or other charge.

 

Section 1.2
- Consideration to Company.  In
consideration of the granting of this Option by the Company, Holder agrees to
render faithful and efficient services to the Company or a Subsidiary, with
such duties and responsibilities as the Company shall from time to time
prescribe, for a period of at least one (1) year from the date this Option
is granted.  Nothing in this Agreement or
in the Plan shall confer upon Holder any right to continue in the employ or
engagement of the Company or any Subsidiary, or shall interfere with or
restrict in any way the rights of the Company and its Subsidiaries, which are
hereby expressly reserved, to discharge or terminate the engagement with Holder
at any time for any reason whatsoever, with or without Cause.

 

ARTICLE II

PERIOD OF EXERCISABILITY

 

Section 2.1
- Exercisability.  Subject to Section 2.2,
Section 4.5 and the terms of any written agreement between the Company and
Holder relating to the exercisability of the Option, the Option shall become
exercisable as set forth in the Notice of Grant and Signature Page hereto.  No portion of the Option which is
unexercisable at Termination of Employment shall thereafter become
exercisable.  Each such installment which
becomes exercisable pursuant to this Section 2.1 shall remain exercisable
until it becomes unexercisable under Section 2.2 or the Plan.

 

1

 

Section 2.2
- Expiration of Option.  (a) Subject
to subsection (b), the Option may not be exercised to any extent by anyone
after the first to occur of the following events:

 

(i)                                     The
expiration of ten (10) years from the date the Option was granted;

 

(ii)                                  Except
in the case of Holder’s disability (within the meaning of Section 22(e)(3) of
the Code) or as set forth in Sections 2.2(a)(iv) and (v), the expiration
of three (3) months from the date of Holder’s Termination of Employment,
unless Holder dies within said three month period;

 

(iii)                               In
the case of Holder’s disability (within the meaning of Section 22(e)(3) of
the Code), the expiration of one (1) year from the date of Holder’s
Termination of Employment by reason of Holder’s disability;

 

(iv)                              The
expiration of one (1) year from the date of Holder’s death; or

 

(v)                                 Upon
Holder’s Termination of Employment, by the Company or a Subsidiary of the
Company for Cause, at the discretion of the Administrator effective upon
written notice to Holder.

 

(b)                                 If,
upon Holder’s Termination of Employment, Holder has completed five or more
years of continuous service with the Company or a Subsidiary, subsection (a) shall
not apply, and the Option may not be exercised to any extent by anyone after
the first to occur of the following events:

 

(i)                                     The
expiration of ten (10) years from the date the Option was granted; or

 

(ii)                                  The
expiration of two (2) years from the date of Holder’s Termination of
Employment.

 

Section 2.3
– Special Tax Consequences.  Holder
acknowledges that, to the extent that the aggregate Fair Market Value of stock
with respect to which “incentive stock options” (within the meaning of Section 422
of the Code, but without regard to Section 422(d) of the Code),
including the Option, are exercisable for the first time by Holder during any
calendar year under the Plan and all other incentive stock option plans of the
Company, any Subsidiary and any parent corporation thereof (within the meaning
of Section 422 of the Code)) exceeds $100,000, such options shall not be
treated as “incentive stock options” to the extent required by Section 422
of the Code.  Holder further acknowledges
that the rule set forth in the preceding sentence shall be applied by
taking options into account in the order in which they were granted.  For purposes of these rules, the Fair Market
Value of stock shall be determined as of the time the option with respect to
such stock is granted.

 

ARTICLE III

EXERCISE OF OPTION

 

Section 3.1
- Person Eligible to Exercise. 
During the lifetime of Holder, only Holder may exercise the Option or
any portion thereof.  After the death of Holder,
any exercisable portion of the Option may, prior to the time when the Option
becomes unexercisable under Section 2.2 or the Plan, be exercised by Holder’s
personal representative or by any person empowered to do so under the deceased Holder’s
will or under the then applicable laws of descent and distribution.

 

2

 

Section 3.2
- Partial Exercise.  Any
exercisable portion of the Option or the entire Option, if then wholly
exercisable, may be exercised in whole or in part as to whole shares only at
any time prior to the time when the Option or portion thereof becomes
unexercisable under Section 2.2 or the Plan.

 

Section 3.3
- Manner of Exercise.  The Option,
or any exercisable portion thereof, may be exercised solely by delivery to the
Secretary of the Company, or such other person or entity designated by the Administrator,
or his, her or its office, as applicable, of all of the following prior to the
time when the Option or such portion becomes unexercisable under Section 2.2
or the Plan:

 

(a)                                  A
written notice complying with the applicable rules established by the Administrator
stating that the Option, or a portion thereof, is exercised.  The notice shall be signed by Holder or other
person then entitled to exercise the Option or such portion; and

 

(b)                                 (i) 
Full cash payment to the Secretary of the Company for the shares with respect
to which such Option or portion is exercised;

 

(ii)  With the consent of the Administrator
(which consent may be withheld in its sole and absolute discretion), (A) shares
of the Company’s Common Stock owned by Holder, duly endorsed for transfer to
the Company, with a Fair Market Value on the date of delivery equal to the
aggregate exercise price of the Option or exercised portion thereof, or (B) shares
of the Company’s Common Stock issuable to Holder upon exercise of the Option,
with a Fair Market Value on the date of delivery equal to the aggregate exercise
price of the Option or exercised portion thereof;

 

(iii)  With the consent of the Administrator
(which consent may be withheld in its sole and absolute discretion), a notice
that Holder has placed a market sell order with a broker with respect to shares
of the Company’s Common Stock then issuable upon exercise of the Option, and
that the broker has been directed to pay a sufficient portion of the net
proceeds of the sale to the Company in satisfaction of the Option exercise
price; or

 

(iv)  With the consent of the Administrator
(which consent may be withheld in its sole and absolute discretion), any
combination of the consideration provided in the foregoing subparagraphs (i), (ii) and
(iii); and

 

(c) 
Full payment to the Company (or other employer corporation) of all amounts
which, under federal, state or local tax law, it is required to withhold upon
exercise of the Option.  With the consent
of the Administrator (which consent may be withheld in its sole and absolute
discretion), all or part of such payment may be made in the form of (i) shares
of the Company’s Common Stock owned by Holder, duly endorsed for transfer, with
a Fair Market Value equal to the sums required to be withheld, or (ii) shares
of the Company’s Common Stock issuable to Holder upon exercise of the Option
with a Fair Market Value equal to the sums required to be withheld; provided,
that the number of shares of Common Stock which may be withheld with respect to
the issuance, vesting, exercise or payment of the Option (or which may be repurchased
from Holder within six months after such shares of Common Stock were acquired
by Holder from the Company) in order to satisfy Holder’s federal and state
income and payroll tax liabilities with respect to the issuance, vesting,
exercise or payment of the Option shall be limited to the number of shares
which have a Fair Market Value on the date of withholding or repurchase equal
to the aggregate amount of such liabilities based on the minimum statutory
withholding rates for federal and state tax income and payroll tax purposes
that are applicable to such supplemental taxable income; and

 

(d) 
In the event the Option or portion shall be exercised pursuant to Section 3.1
by any person or persons other than Holder, appropriate proof of the right of
such person or persons to exercise the Option.

 

3

 

Section 3.4
- Conditions to Issuance of Stock Certificates.  The shares of stock deliverable upon the
exercise of the Option, or any portion thereof, may be either previously
authorized but unissued shares or, to the extent applicable to the Company,
issued shares which have then been reacquired by the Company.  Such shares shall be fully paid and
nonassessable.  The Company shall not be
required to issue or deliver any certificate or certificates for shares of
stock purchased upon the exercise of the Option or portion thereof prior to
fulfillment of all of the following conditions:

 

(a) 
The admission of such shares to listing on all stock exchanges on which such
class of stock is then listed; and

 

(b) 
The completion of any registration or other qualification of such shares under
any state or federal law or under rulings or regulations of the Securities and
Exchange Commission or of any other governmental regulatory body, which the Administrator
shall, in its absolute discretion, deem necessary or advisable; and

 

(c) 
The obtaining of any approval or other clearance from any state or federal
governmental agency which the Administrator shall, in its absolute discretion,
determine to be necessary or advisable; and

 

(d) 
The lapse of such reasonable period of time following the exercise of the
Option as the Administrator may from time to time establish for reasons of
administrative convenience; and

 

(e) 
The receipt by the Company of full payment for such shares, including payment
of all amounts which, under federal, state or local tax law, the Company (or
other employer corporation) is required to withhold upon exercise of the
Option.

 

Section 3.5
- Rights as Stockholder.  Holder
shall not be, nor have any of the rights or privileges of, a stockholder of the
Company in respect of any shares purchasable upon the exercise of any part of
the Option unless and until certificates representing such shares have been
issued by the Company to Holder.

 

ARTICLE IV

OTHER PROVISIONS

 

Section 4.1
– Administration.  The Administrator
shall have the power to interpret the Plan and this Agreement, and to adopt
such rules for the administration, interpretation and application of the
Plan as are consistent therewith, to interpret, amend or revoke any such rules and
to amend this Agreement provided that the rights or obligations of Holder are
not affected adversely.  All actions
taken and all interpretations and determinations made by the Administrator in
good faith shall be final and binding upon Holder, the Company and all other
interested persons.  No member of the Administrator
shall be personally liable for any action, determination or interpretation made
in good faith with respect to the Plan or the Option.

 

Section 4.2
- Option Not Transferable. 
Neither the Option nor any interest or right therein or part thereof
shall be sold, pledged, assigned or transferred in any manner other than by
will or the laws of descent and distribution or, subject to the consent of the
Administrator, pursuant to a DRO, unless and until the shares underlying such
Option have been issued.  Neither the
Option nor any interest or right therein or part thereof shall be liable for
the debts, contracts or engagements of Holder or his successors in interest or
shall be subject to disposition by transfer, alienation, anticipation, pledge,
encumbrance, assignment or any other means whether such disposition be
voluntary or involuntary or by operation of law by judgment, levy, attachment,
garnishment or any other legal or equitable proceedings (including

 

4

 

bankruptcy), and any
attempted disposition thereof shall be null and void and of no effect, except
to the extent that such disposition is permitted by the preceding sentence.

 

During
the lifetime of Holder, only he may exercise an Option (or any portion thereof)
granted to him under the Plan, unless it has been disposed of with the consent
of the Administrator pursuant to a DRO. 
After the death of Holder, any exercisable portion of an Option may,
prior to the time when such portion becomes unexercisable under the Plan or
this Agreement, be exercised by his personal representative or by any person
empowered to do so under the deceased Holder’s will or under the then
applicable laws of descent and distribution.

 

Section 4.3
– Notices.  Any notice to be given
under the terms of this Agreement to the Company shall be addressed to the
Company in care of its Secretary, and any notice to be given to Holder shall be
addressed to him at the address given beneath his signature hereto.  By a notice given pursuant to this Section 4.3,
either party may hereafter designate a different address for notices to be
given to him.  Any notice which is
required to be given to Holder shall, if Holder is then deceased, be given to Holder’s
personal representative if such representative has previously informed the
Company of his status and address by written notice under this Section 4.3.  Any notice shall be deemed duly given when
enclosed in a properly sealed envelope or wrapper addressed as aforesaid,
deposited (with postage prepaid) in a post office or branch post office
regularly maintained by the United States Postal Service.

 

Section 4.4
– Titles and Construction.  Titles
are provided herein for convenience only and are not to serve as a basis for
interpretation or construction of this Agreement.  This Agreement shall be administered, interpreted
and enforced under the internal laws of the State of California, without regard
to conflicts of laws thereof.

 

Section 4.5
- Conformity to Securities Laws.  Holder
acknowledges that the Plan is intended to conform to the extent necessary with
all provisions of the Securities Act and the Exchange Act and any and all
regulations and rules promulgated by the Securities and Exchange
Commission thereunder, including without limitation Rule 16b-3.  Notwithstanding anything herein to the
contrary, the Plan shall be administered, and the Option is granted and may be
exercised, only in such a manner as to conform to such laws, rules and
regulations.  To the extent permitted by
applicable law, the Plan and this Agreement shall be deemed amended to the
extent necessary to conform to such laws, rules and regulations.

 

ARTICLE V

DEFINITIONS

 

Whenever
the following terms are used in this Agreement, they shall have the meaning
specified below.  The masculine pronoun
shall include the feminine and neuter, and the singular the plural, where the
context so indicates.  All capitalized
terms used herein without definition shall have the meanings ascribed to such
terms in the Plan.

 

“Cause” shall mean (i) ”Cause”, as defined
in the employment agreement, if any, between the Company or a Subsidiary of the
Company and Holder, as in effect from time to time, or (ii) in the absence
of such an employment agreement, as determined by the Administrator in its sole
discretion, (A) Holder’s conviction of, or no contest plea to, a felony or
a misdemeanor involving moral turpitude, or (B) Holder’s gross negligence
or misconduct, or material violation of the Company’s policies (including
without limitation the Company’s policy on insider trading), or a material
breach of Holder’s duties or loyalty to the Company, or (C) Holder’s
fraud, embezzlement or criminal conduct that is damaging to the Company, or (D) Holder’s
willful or continued failure to substantially perform his or her duties to the
Company.

 

5

 

EXHIBIT 1-B

 

AMENDMENT AND RESTATEMENT OF THE 2001
INCENTIVE AWARD PLANExhibit 10.22

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY ASTERISKS HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES ACT
OF 1934, AS AMENDED.

 

 

AMENDMENT
ELEVEN

TO THE
AMENDED AND RESTATED

AUTHORIZED
SYMANTEC ELECTRONIC RESELLER

FOR SHOP SYMANTEC
AGREEMENT

 

This Eleventh Amendment
to The Amended and Restated Authorized Symantec Electronic Reseller for Shop
Symantec Agreement (the “Amendment Eleven”)
is made as of the Amendment Eleven Effective Date, as defined below, and shall
serve to amend the Amended and Authorized Symantec Electronic Reseller for Shop
Symantec Agreement, with an Amended Date of July 1, 2003, by and between
Symantec Corporation, Symantec Limited and Digital River, Inc. (the “Agreement”).

 

RECITALS

 

A.           Symantec and Digital River are parties to
the Agreement, which provides, among other things, for Digital River to resell
Symantec Products to end users through Symantec’s Storefront, in accordance
with the terms and conditions set forth in the Agreement.

 

B.             Symantec and Digital River desire to make
several adjustments to the terms and conditions of the Agreement.

 

NOW, THEREFORE, in
consideration of the foregoing, and of the mutual covenants and agreements
hereinafter set forth, Symantec and Digital River agree as follows:

 

1.               Capitalized
terms used herein and not otherwise defined below shall have the meanings set
forth in the Agreement.

 

2.               Selling Veritas Product on the Storefront. 
Section 3 “Obligations of Digital River” is hereby amended to include
the following at the end of the section:

 

Selling Veritas
Products on the Storefront Post Closing.

 

a.               Background.  While
Symantec currently anticipates completing its acquisition of all the assets of
Veritas Software Corporation (“Veritas”), which will result in Veritas becoming
a wholly owned subsidiary of Symantec (the “Closing”), by June 30, 2005, this
date is subject to change.  As a result,
the effective date of the Closing for purposes of this Amendment Eleven is the
date upon which Digital River receives written notice that the Closing has
occurred (the “Closing Date”) from *, Director, Global Online Sales.  Symantec, immediately following the Closing,
desires to sell the Veritas computer software products, as listed in Exhibit Y
hereto, as it may be amended from time to time (“Veritas Products”), on the
Storefront in North America (the “VP Territory”).  Symantec will not offer downloadable versions
of the Veritas Products on the Storefront.

 

*CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION.

 

1

 

b.              Pre-Closing Work. 
Symantec, and Digital River at Symantec’s reasonable request, will
perform, prior to the Closing, the work Symantec deems reasonably necessary in
order be prepared to sell the Veritas Products on the Storefront immediately
following the Closing.  Such work
includes, but is not limited to: creating SKUs, developing and creating web
pages and online links, providing Veritas Products to Digital River to fulfill
post-Closing sales, and creating internal processes and procedures to address
the selling and fulfilling of Veritas Product on the Storefront (the “Pre-Closing
Work”).

 

c.               Purchase Orders for, and Stocking of,
Veritas Product.  Symantec personnel will coordinate with
Digital River, and Digital River will reasonably cooperate with Symantec,
regarding Digital River obtaining Veritas Products from Symantec, prior to the Closing,
in order that Digital River will be prepared to fulfill the initial
post-Closing sales of Veritas Products on the Storefront.

 

d.              Limitations. 
Prior to the Closing Date, under no circumstances: (a) will the
Storefront display or refer to the Veritas Product; (b) will the Storefront
enable a user to purchase the Veritas Product; (c) will orders for Veritas
Product be accepted or fulfilled on the Storefront.  Under no circumstances will the Veritas
Products be sold on the Storefront outside the VP Territory.

 

e.               Pricing.  The Veritas
Products will be treated as Consumer Symantec Products, as that term is used in
the Agreement, for purposes of selling the Veritas Products on the Storefront,
and for purposes of calculating the actual final price Digital River pays
Symantec for the Veritas Products, which is based upon the Partner Efficiency
Sharing Model.

 

3.               Partner
Efficiency Model.  Section 11(c)(i),
as amended by Amendment Four, is hereby deleted in its entirety and replaced
with the following.

 

c.               Payments
by Digital River to Symantec.

 

i.                  Symantec
Pricing to Digital River.  From time
to time, Symantec shall provide Digital River with price lists setting forth
the * prices from Symantec to Digital River for the Symantec Products (“List Price(s)”). 
The current price lists for the Symantec Products as of the Amended Date
is set forth as Exhibit A to this
Agreement.  Symantec’s Revenue Accounting
department and E-commerce Marketing team will maintain and update the Symantec
Products in terms of both product lines offered, their SKUs listing and any
pricing changes, and forward this updated list to Digital River for the purpose
of calculating the price adjustment for the actual final price that Digital
River pays to Symantec, in accordance with the Partner Efficiency Sharing
Model, as indicated below.  Unless
otherwise noted and provided as separate lists in Exhibit A, the List Price and the ERPs are the same.

 

The actual final price
that Digital River pays Symantec for each Symantec Product shall be based upon
the Partner Efficiency Model, as defined and set forth below, which is
determined based upon the volume of sales of Symantec Products made by Digital
River.  The calculation for the first two
monthly remittances from Digital River to Symantec of each quarter will be
based upon the previous established rate of * percent (*%).  At the end of each quarter, the Parties will
agree on an estimated “Revenue @ ERP” for the upcoming quarter, which shall be
no less than the prior quarter’s actual “Revenue @ ERP.”   After the conclusion of each quarter, a true
up against the actual “Revenue @ ERP” shall be

 

*CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION.

 

2

 

performed per the
schedule set forth below.  The amount due
for consumer Symantec Products will be determined as follows:  (i) the actual total dollar value of the
consumer Symantec Products sold for the quarter (which amount shall be derived
from the “penetration report” generated by Digital River) (the “*”) will be multiplied by four (4) to
annualize the amount, then (ii) locate that total amount in the column “Revenue
@ ERP” on the Partner Efficiency Sharing Model below and (iii) find the
applicable * indicated at such level of “Revenue @ ERP” in the Partner
Efficiency Sharing Model. The applicable * will be applied to the * for such
consumer Symantec Products to determine * that Digital River shall pay Symantec
for the Symantec Products.  The Parties
agree to communicate the actual amount due to Symantec on the fourth day of the
next quarter.

 

A finalized activity
report will be sent to Symantec on the tenth (10th) of each
month.  Digital River shall pay Symantec
the amount due by no later than the twentieth (20th) of each
month.  There are no other annual catch
up adjustments or rebates based upon other quarterly activity that will be
applied in determining the final price that Digital River shall pay Symantec
for the Symantec Products.  Subject to the
foregoing requirement, Symantec reserves the right, from time to time, increase
or decrease its List Prices to Digital River and the ERPs for the Symantec
Products, which changes shall be effected by Symantec’s delivery to Digital
River of an updated price list.  The
Partner Efficiency Sharing Model will be revisited by the Parties and may be
adjusted by a mutually signed amendment.

 

The Partner Efficiency
Model will not apply to any sales from the “Call Center,” and “iStore,” which
are governed by a * of * and *.

 

Partner
Efficiency Model:

(All Revenue @ ERP
in Millions)

 

*                                         *

 

4.               Term.  The Term of the Agreement is hereby mutually
extended for an additional two years.  As
a result, the new expiration date of the Agreement is July 1, 2008.

 

5.               Dedicated
Team.  Section 3(m) of the Agreement
is deleted in its entirety, and the term “Dedicated Team” in 3(b)(xii)(a)(iv)
is hereby amended to mean no less than the following Digital River personnel: *
software development engineers; * web developer(s) (Creative and site design);
* project manager(s); * business analyst(s); and * Q&A engineer(s).  In addition, the following is hereby added to
the end of Section 3(b)(xii)(a)(iv) and all language in such Section contrary to
the below is hereby deleted:

 

The Dedicated Team will:
(a) work solely on Symantec projects and requests at a one hundred percent
(100%) utilization rate; (b) work only * per person, per week, or *, per
person, per quarter (less any holidays) (“Dedicated Team Hours”); (c) not work
overtime on Symantec projects and requests. 
Digital River will be responsible for all costs and fees related to the
Dedicated Team.  For the avoidance of
doubt, the special discounted Consulting Rate for each member of the Dedicated
Team will remain * per hour.  To the extent
Symantec requires work by the Dedicated Team in excess of the Dedicated Team
Hours, Symantec will request such work in writing, and will pay the Consulting
Rate, which is defined as * per hour in the Agreement, for all such work.  Digital River will provide a weekly written
report to Symantec in substantially the form it has used to report on the team’s
utilization throughout 2005.

 

*CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION.

 

3

 

6.               Exhibits.  The Agreement is hereby amended to include a
new Exhibit Y, “Veritas Products,” as attached hereto.

 

7.               All
other provisions of the Agreement, except as modified by this Amendment Eleven,
shall remain in full force and effect and are hereby reaffirmed.

 

8.               This
Amendment Eleven is considered effective on the last date for the Symantec
signature lines set forth below on this page (the “Amendment Eleven Effective Date”) provided that it has been
signed by Digital River and has been accepted by Symantec at its principal
place of business.  Notwithstanding the
foregoing, the effective date of paragraphs three (3) and five (5) above will
be April 1, 2005.

 

IN WITNESS WHEREOF, the
parties hereto have executed this Eleventh Amendment on the date specified
below.

 

	
  SYMANTEC
  CORPORATION

  	
   

  	
  DIGITAL
  RIVER

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
  /s/
  Arthur F. Courville

  	
   

  	
   

  	
  Signature:

  	
  /s/
  Carter Hicks

  	
   

  
	
   

  	
   

  	
   

  
	
  Printed
  Name:

  	
  Arthur
  F. Courville

  	
   

  	
   

  	
  Printed
  Name:

  	
  Carter
  Hicks

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  SVP
  and General Counsel

  	
   

  	
   

  	
  Title:

  	
  Chief
  Financial Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  June
  15, 2005

  	
   

  	
   

  	
  Date:

  	
  June
  15, 2005

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SYMANTEC
  LIMITED

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
  /s/
  Arthur F. Courville

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Printed
  Name:

  	
  Arthur
  F. Courville

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  Director

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  June
  15, 2005

  	
   

  	
   

  	
   

  
																

 

*CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION.

 

4

 

Exhibit
Y

 

1.               Replication
Exec v3.1

2.               VERITAS
Backup ExecTM 10 for Windows Servers

3.               VERITAS
Backup ExecTM 10 for Windows Small Business Server

4.               VERITAS
Backup ExecTM 10.0 for Windows Small Business Servers Remote Agent for Windows
Servers (CAL) 1-pack

5.               Veritas
Backup ExecTM 10.0 for Windows Servers Agent for Microsoft Exchange Servers

6.               VERITAS
Backup ExecTM 10.0 Agent for Microsoft SQL Server (CAL)

7.               VERITAS
Backup ExecTM 10.0 for Windows Servers Remote Agent (CAL) for Windows or NetWare
Servers

 

*CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION.

 

5

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