Document:

EXHIBIT
4.1

EXECUTION
VERSION

AMENDMENT

TO

RIGHTS AGREEMENT

This AMENDMENT TO
RIGHTS AGREEMENT (this “Amendment”) is entered into as of February 11, 2007,
between Witness Systems, Inc., a Delaware corporation (the “Company”), and
Computershare Trust Company, N.A. (successor in interest to SunTrust Bank), a
Delaware corporation (the “Rights Agent”). 
Capitalized terms not otherwise defined herein shall have the meanings
given them in the Rights Agreement dated as of October 25, 2002, between the
parties hereto (the “Rights Agreement”).

RECITALS

WHEREAS, the
Company proposes to enter into an Agreement and Plan of Merger immediately
following the execution and delivery hereof (as it may be amended from time to
time, the “Merger Agreement”) among Verint Systems Inc., a Delaware corporation
(“Buyer”), White Acquisition Corp., a Delaware corporation and wholly owned
subsidiary of Buyer (“Merger Sub”), and the Company, providing for the merger
of the Merger Sub with and into the Company, with the Company continuing as the
surviving corporation (the “Merger”);

WHEREAS, the Board
of Directors of the Company has approved, authorized and adopted the Merger
Agreement and the transactions contemplated thereby;

WHEREAS, the Board
of Directors of the Company has determined, in connection with the execution of
the Merger Agreement, that it is desirable to amend the Rights Agreement to
exempt the Merger Agreement, the execution thereof and the transactions
contemplated thereby, including, without limitation, the Merger, from the
application of the Rights Agreement as set forth in this Amendment;

WHEREAS, as of the
time immediately prior to the execution of this Amendment, no Person has become
an Acquiring Person and no Distribution Date has occurred;

WHEREAS, Section
27 of the Rights Agreement provides that, prior to the Distribution Date, the
Company may supplement or amend the Rights Agreement in any respect, without
the approval of any holders of Rights, by action of its board of directors, so
long as the duties, liabilities, and indemnification of the Rights Agent are
not affected;

WHEREAS, pursuant
to the terms of the Rights Agreement and in accordance with Section 27 and
Section 29 thereof, the Board of Directors of the Company has directed that the
Rights Agreement should be amended and supplemented as set forth in this
Amendment effective prior to the execution of the Merger Agreement.

NOW THEREFORE, in
consideration of the premises and the mutual agreements herein set forth, the
parties hereby agree as follows:

 

1.             Section 1 of the Rights Agreement
is hereby amended to add the following paragraph at the end of Section 1:

“In addition,
notwithstanding anything in this Agreement to the contrary, none of Verint
Systems Inc., a Delaware corporation (“Buyer”), White Acquisition Corporation,
a Delaware corporation and a wholly owned subsidiary of Buyer (“Merger Sub”) or
any of their Affiliates or Associates shall be an “Acquiring Person” solely by
reason of: (1) the approval, adoption, execution or delivery of the Agreement
and Plan of Merger (as it may be amended and supplemented, the “Merger
Agreement”) among the Company, Buyer and Merger Sub, pursuant to which it is
intended that the Merger Sub will be merged with and into the Company, with the
Company continuing as the surviving corporation (the “Merger”) (2) the approval
or consummation of the Merger, (3) the approval or consummation of the other
transactions contemplated by the Merger Agreement, or (4) the announcement of
any of the foregoing.

2.             Section 7(a) of the Rights Agreement
is hereby amended and restated in its entirety to read as follows:

“The registered
holder of any Rights Certificate may exercise the Rights evidenced thereby
(except as otherwise provided in this Agreement) in whole or in part at any
time after the Distribution Date upon surrender of the Rights Certificate, with
the form of election to purchase and the related certificate properly completed
and duly executed, to the Rights Agent at the office of the Rights Agent
designated for such purpose, together with payment of the purchase price
prescribed by Section 7(b) and an amount equal to any applicable transfer tax
or charge required to be paid by the holder of such Rights Certificate in
accordance with Section 9 in cash, or by certified check, wire transfer or bank
draft payable to the order of the Company), at or prior to the earliest of (i)
the time immediately prior to the Effective Time (as such term is defined in
the Merger Agreement), (ii) the Close of Business on the tenth anniversary date
of this Agreement (the “Final Expiration Date”), (iii) the time at which the
Rights are redeemed as provided in Section 23 hereof (the “Redemption Date”) and
(iv) the time at which the Rights are exchanged as provided in Section 24
hereof (the earliest of (i), (ii), (iii) and (iv) being herein referred to as
the “Expiration Date”).”

3.             The
definition of a “Section 11(a)(ii) Event” contained in Section 1 of the Rights
Agreement is hereby amended and restated in its entirety to read as follows:

“‘Section
11(a)(ii) Event’ shall mean any event described in Section 11(a)(ii)(A), (B) or
(C); provided, however, that, notwithstanding anything in this Agreement to the
contrary, a Section 11(a)(ii) Event shall be deemed not to have occurred solely
as a result of (w) the approval, adoption, execution or delivery of the Merger
Agreement, (x) the approval or consummation of the Merger, (y) the approval or
consummation of the other transactions contemplated by the Merger Agreement, or
(z) the announcement of any of the foregoing.”

4.             The
definition of a “Section 13 Event” contained in Section 1 of the Rights
Agreement is hereby amended and restated in its entirety to read as follows:

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“Section 13 Event”
shall have the meaning set forth in Section 13(a); provided, however, that, notwithstanding
anything in this Agreement to the contrary, a Section 13 Event shall be deemed
not to have occurred solely as a result of (w) the approval, adoption,
execution or delivery of the Merger Agreement, (x) the approval or consummation
of the Merger, (y) the approval or consummation of the other transactions
contemplated by the Merger Agreement, or (z) the announcement of any of the
foregoing.”

5.             Section 26 of the Rights Agreement
is hereby amended to replace the reference to “SunTrust Bank” with “Computershare
Trust Company, N.A. (successor in interest to SunTrust Bank)”.

6.             This Amendment shall become
effective as of and immediately prior to the execution of the Merger Agreement,
all reference to the Rights Agreement from and after such time shall be deemed
to be references to the Rights Agreement as amended hereby.

7.             Except as amended hereby, the
Rights Agreement shall remain unchanged and shall remain in full force and
effect.

8.             This Amendment may be executed in
any number of counterparts, each of which shall be an original, but all of
which together shall constitute one instrument.

9.             This Amendment shall be governed
by, and construed in accordance with, the laws of the State of Delaware
(without giving effect to any conflict of laws principles that would cause the
application of the laws of any other jurisdiction).

10.           The officer of the Company executing
this Amendment, being an appropriate officer of the Company and authorized to
do so by resolution of the Board of Directors of the Company duly adopted and
approved at a meeting held on February 11, 2007, hereby certifies to the Rights
Agent that this Amendment is consistent with Section 27 of the Rights
Agreement.

[The remainder of
this page has been intentionally left blank.]

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IN WITNESS WHEREOF,
the parties have caused this Amendment to be executed by their respective duly
authorized representatives as of the date first above written.

	
   

  	
  WITNESS SYSTEMS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COMPUTERSHARE
  TRUST COMPANY, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 4EXHIBIT 10.1

FIRST AMENDMENT TO SEPARATION AND RELEASE AGREEMENT

This First Amendment to
Separation and Release Agreement (this “First Amendment”)
is entered into as of February 9, 2007 (the “Amendment
Effective Date”), by and between Witness Systems, Inc., a Delaware
corporation (the “Company”), and
David Gould, an individual (“Executive”),
with reference to the following facts:

A.    The Company and Executive (collectively, the
“Parties”) are parties to a Separation
and Release Agreement, dated January 3, 2007 (the “Original
Separation Agreement”), pursuant to which, among other things,
Executive has executed and delivered to the Company a resignation letter by
which he has resigned his employment with the Company (and all other officer or
director positions he held with any of the Company’s subsidiaries or affiliates
as of January 3, 2007 (the “Other Positions”)),
which resignation (the “Resignation”),
by the terms of the Separation Agreement, becomes effective upon acceptance by
the Company’s Board of Directors (the “Board”).  (For purposes of this First Amendment, the
Original Separation Agreement, as amended by this First Amendment, is referred
to as the “Amended Separation Agreement.”)

B.    The Parties are parties to a Change of
Control Agreement, dated November 3, 2004, as amended by a First Amendment to
Change of Control Agreement, dated February 16, 2006 (collectively, the “CIC Agreement”), pursuant to which Executive is entitled to
certain benefits upon a “Change of Control” of the Company as that term is
defined in Section 1.3 of the CIC Agreement.

C.    The Parties desire to terminate, amend and
confirm various rights and obligations among them by entering into this First
Amendment.

NOW, THEREFORE, the
Parties agree as follows:

1.     Meaning of Terms. 
Except as provided otherwise or as defined in this First Amendment, all
capitalized terms used in this First Amendment will have the same meaning as
under the Original Separation Agreement. 

2.     Employment of Executive. 
By this First Amendment, the Board accepts (and Executive concurs with
the Board’s acceptance of) the Resignation effective immediately with respect
to the Other Positions, and effective as of the end of the day on April 30,
2007 (the “Employment Termination Date”) with
respect to Executive’s employment with the Company, and Executive will remain a
full-time employee of the Company through that date.  From the Amendment Effective Date through the
Employment Termination Date, Executive will perform only those duties assigned
by the Board or the Chief Executive Officer of the Company, and, except as
otherwise agreed between the Parties, Executive will not have the authority to
act on behalf of or bind the Company. 
For purposes of Executive’s Outstanding Options (as defined in Section 4
below), the Resignation will be treated as a termination of Executive’s
employment with the Company by Executive for “Good Reason” as that term is
defined in the Option Documents (as 

 

defined in Section 4
below).

3.     Termination of CIC Agreement.  As of the Amendment Effective Date, the CIC
Agreement is terminated, and all rights of the Parties under that Agreement
immediately will cease.

4.     Stock Options.  By
this First Amendment, the Company agrees that any and all options to purchase
common stock in the Company that the Company previously has granted to
Executive, to the extent they remain unvested or unexercised as of the
Amendment Effective Date (the “Outstanding Options”),
will (i) continue to vest and be exercisable in accordance with the terms and
conditions of the respective Option Plans and Option Agreements pursuant to
which they were granted (the “Option Documents”),
up through and including the Employment Termination Date, and (ii) continue to
be exercisable (or cease to be exercisable) in accordance with the terms and
conditions of the Option Documents, subsequent to the Employment Termination
Date; provided that the provisions of Section 7 of the Original Separation
Agreement will continue to apply with respect to the Outstanding Options.  Except as may be provided otherwise in
Section 10 of the various Option Agreements governing the Outstanding Options,
no Outstanding Options will further vest after the Employment Termination Date.

5.     Remaining Provisions of Original Separation Agreement.  Except as modified by the terms of this First
Amendment, the terms of the Original Separation Agreement remain in effect.

6.     Acknowledgements and Representations.  Each of the Parties (i) acknowledges the
validity of this two (2) page First Amendment, and represents that they have
the legal capacity to enter into this First Amendment, (ii) acknowledges that
they have consulted with an attorney before signing this First Amendment, (iii)
represents that they have read carefully this First Amendment, and know and
understand its terms and conditions, including its final and binding effect,
and (iv) acknowledges that they have signed this First Amendment voluntarily.

IN WITNESS WHEREOF, the
undersigned have entered into this First Amendment effective as of the
Amendment Effective Date.

 

	
  WITNESS SYSTEMS, INC.,

  a Delaware corporation

  	
   

  	
  DAVID GOULD,

  an individual

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Date: February     , 2007

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:
  February     , 2007

  	
   

  	
   

  
						

 

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