Document:

exv10w03

 

Exhibit 10.03

Symantec Corporation

Employment Agreement

December 15, 2004

Edwin Gillis

350 Ellis Street

Mountain View, CA 94043

Dear Edwin:

As you know, Symantec Corporation, a Delaware corporation (“Symantec”), is acquiring (the
“Acquisition”) your employer, VERITAS Corporation, a Delaware corporation (“Company” or “Veritas”),
pursuant to the Agreement and Plan of Reorganization dated on or about December 15, 2004 (the
“Merger Agreement”) by and among Symantec, Carmel Acquisition Corp., a wholly-owned acquisition
subsidiary of Symantec, and the Company. It is a material inducement and condition to Symantec’s
execution and delivery of the Merger Agreement and its willingness to complete the acquisition that
you enter into this employment agreement. This agreement becomes effective upon the closing of the
Acquisition (the “Closing Date” or the “Closing”). If you accept this offer, and the contingencies
of this offer are satisfied, on the Closing Date you will become an employee of Symantec or if
Symantec elects to operate Company as a separate subsidiary, an employee of that subsidiary
(whichever case applies, the “Symantec Employer”), on the following terms.

1. Your Position

You will initially have the title of Senior Vice President of Administration and Integration, Grade
20, reporting to the Chief Executive Officer. The Symantec Employer may, from time to time, at its
sole discretion, change your title, grade, duties and the person to whom you report, subject to
your rights under the Termination for Good Reason provisions of Section 9 of this
agreement.

2. Compensation and Benefits

You will receive an annual base salary of $475,000, less all applicable deductions and withholding,
and you will be eligible for an annual focal (performance) review. You will be eligible to
participate in the Symantec Corporation Variable Pay Plan, which pays annually, based upon our
success and your individual performance, with your annual target bonus thereunder to be set at not
less than sixty percent (60%) of your annual base salary and other eligible compensation (the
“Target Bonus”), and any other incentive plans for which you may become eligible. In addition, you
will participate in all of Symantec’s and the Symantec Employer’s employee benefits, benefit plans
and programs for which you are eligible and you will be entitled to all perquisites of other
Symantec Employer executives at your same grade. Please note that Company benefits will continue
until you are eligible to enroll and participate in Symantec’s benefits. You will also during your
employment period with the Symantec Employer participate in the Symantec Executive Retention Plan
or any successor plan.

 

 

3. Sign-On Incentive Bonus Payment

In connection with your commencement of employment with Symantec Employer, you will be eligible to
receive a sign-on incentive bonus payment of $2,000,000 (the “Incentive Bonus”), which will be
payable in three (3) installments. One third of the Incentive Bonus will be payable six (6) months
after the Closing Date, another third of the Incentive Bonus will be payable twelve (12) months
after the Closing Date, and the remaining one third of the Incentive Bonus will be payable eighteen
(18) months after the Closing Date, subject to the conditions below. Symantec shall withhold all
applicable income and employment taxes from any amount paid to you.

You will be entitled to each particular installment of the Incentive Bonus only if you are employed
by Symantec on the date specified above for the payment of that installment; provided, however, if
your employment is terminated by Symantec other than for Cause (as defined below) or if your
termination qualifies as a Resignation for Good Reason (as defined below) you will be entitled to
receive any unpaid portion of the Incentive Bonus under the terms and conditions specified below.

4. New Hire Option Grant

Within five (5) business days after the Closing, the Compensation Committee of the Board of
Directors will grant you an option to purchase 87,500 shares of common stock of Symantec (the
“Symantec Common Stock”) under the Symantec 2004 Equity Incentive Plan. The option exercise price
will be the closing price of the Symantec Common Stock on the Nasdaq National Market on the last
trading day prior to the option grant date, as reported in the Wall Street Journal. You
will be provided with the standard Symantec form of stock option agreement at the time of grant of
such option (the “Symantec Option”). The Symantec Option will vest over a four-year period starting
from your first day of employment with Symantec, at the rate of 25% of the option at the end of
your first year of employment, and the balance in a series of 36 successive equal monthly
installments upon your completion of each additional month of employment thereafter and will
not be subject to acceleration except in accordance with the provisions of the Executive
Retention Plan. You will be eligible for future Symantec options in the sole discretion of the
Symantec Compensation Committee.

5. Veritas Options

On the Closing Date your outstanding Veritas stock options with an exercise price of $49.00 or less
(the “Company Options”) and your Veritas restricted stock units (the “Veritas Restricted Stock
Units”) will be assumed by Symantec and adjusted to reflect the terms of the Merger Agreement.
Accordingly, following the Acquisition, your Veritas Options and Veritas Restricted Stock Units
will be exchanged for options and units to acquire Symantec Common Stock, and you will continue to
vest in your Veritas Options and Veritas Restricted Stock Units, over your period of service with
the Symantec Employer following the Acquisition, in accordance with the same vesting schedule in
effect for each Veritas Option and Veritas Restricted Unit grant immediately prior to the Closing
Date; provided, however, that for purposes of each such vesting schedule the Veritas Options and
Veritas Restricted Stock Units which vest on an accelerated basis on the Closing Date shall be
deemed to constitute a ratable portion (i.e. the percentage accelerated) of the shares subject to
each installment under such schedule which was unvested immediately prior to such acceleration,
unless specifically provided otherwise in the agreement evidencing the grant. You will receive a
Stock Option and Restricted Stock Unit Assumption Agreement (to be entered into by you) informing
you of the specific adjustments to the number of shares, the exercise price (if applicable) and the
number of shares subject to each vesting installment that have been made to your Veritas Options
and the Veritas Restricted Stock Units to reflect the exchange ratio in effect for the Acquisition.

 

 

6. Term and Place of Employment

This agreement does not constitute a contract of employment for any specific period of time but
will create an “employment at will” relationship. Either Symantec or you may terminate the
employment relationship for any reason at any time. Your participation in any of Symantec’s stock
option or benefit programs or your Incentive Bonus will not have any effect on your “employment at
will” relationship with Symantec or interfere with or restrict in any way the rights of Symantec to
discharge you or change the terms of your employment (or of any employment agreement) at any time
for any reason whatsoever, with or without Cause. You agree that if requested by the Symantec
Employer you will relocate to the Symantec Employer’s offices in Cupertino, California no later
than the last day of the month in which the Closing Date occurs.

Upon the termination of your employment with the Symantec Employer at any time for any reason, you
would be paid your salary through your date of termination and for the value of all unused paid
time off earned through that date, based on your rate of base salary at that time. You would also
be allowed to continue your medical coverage at your own expense to the extent provided for by
COBRA and you would be allowed to exercise your vested options, if any, during the time period set
forth in, and in accordance with, your governing stock option agreement(s). The foregoing accrued
payments and benefits will be collectively referred to herein as the “Accrued Compensation.”

7. Special Severance Benefits 

In the event you voluntarily terminate your employment with your Symantec Employer for any reason
(other than a Resignation for Good Reason) within the first twelve (12) months following the
Closing Date, then you will become entitled to the same severance benefits you would have received
under your Change in Control Agreement with Veritas (the “Veritas Change in Control Agreement”)
attached hereto as Exhibit A had your employment terminated on the Closing Date by reason
of a Resignation for “Good Reason” as defined in the Veritas Change in Control Agreement.
Accordingly, your salary continuation payments and your target bonus and pro-rated bonus under your
Change in Control Agreement will be calculated on the basis of the base salary and target bonus in
effect for you immediately prior to the Closing Date. In addition, all of your Veritas Options and
Veritas Restricted Stock Units as assumed by Symantec in the Acquisition other than the Veritas
Options granted to you after the date of this agreement, shall, to the extent outstanding but not
yet vested, vest and become immediately exercisable or issuable as to all the Symantec shares
subject to those options and units at the time of your termination of employment with the Symantec
Employer, and you shall have the limited period specified in each of the applicable option
agreement for your Veritas Options to exercise those Veritas Options following your termination of
employment with the Symantec Employer. The shares issuable to you under your Veritas Restricted
Stock Units will be subject to Symantec’s collection of the applicable withholding taxes. Your
salary continuation payments shall be paid over the same period specified in your Veritas Change in
Control Agreement, and you shall be subject during that period to the restrictive covenants of
Section 3(e) of your Veritas Change in Control Agreement. In the event of a material breach of your
obligations under such Section 3(e) of the Veritas Change in Control Agreement during the salary
continuation period, Symantec shall as its remedy be relieved of all further obligations to pay the
remaining unpaid salary continuation payments. Notwithstanding the foregoing, your benefit
entitlement under this Section 7 shall be conditioned upon your delivery to Symantec of an
effective release in the form of attached Exhibit B (the “Release”). In addition, such
benefits will be in lieu of any entitlement you may have to notice of termination, pay in lieu of
notice of termination, or any other severance payment or benefit from any other Veritas or Symantec
Employer source. In no event will any of your benefits under the Veritas Change in Control
Agreement be reduced by any compensation you earn as an employee of the Symantec Employer,
including (without limitation) any installment of your Incentive Bonus.

 

 

8. Termination for Cause; Termination without Good Reason; Termination other than pursuant to
Section 7 

If your employment with the Symantec Employer is terminated by the Symantec Employer for “Cause”
(as defined below) or you voluntarily terminate your employment other than by a “Resignation for
Good Reason” (as defined below) at any time, you will be entitled to the Accrued Compensation.
Such Accrued Compensation will be in addition to any benefits to which you are entitled under
Section 7. All of your other benefits and future stock option or restricted stock unit
vesting, if any, would terminate. In addition, you would not be entitled to any further
installments of the Incentive Bonus. Neither Symantec nor the Symantec Employer would have an
obligation to pay you, and you would have no right to, any severance except as may be provided at
such time under any of Symantec’s or the Symantec Employer’s other employee benefit plans for which
you were then eligible or as provided in Section 7.

9. Termination without Cause or Termination for Good Reason

If your employment with the Symantec Employer terminates by reason of a “Termination without
“Cause” (as defined below) or your “Resignation for Good Reason” (as defined below), the following
provisions shall apply:

     • All of your assumed Veritas Options and Veritas Restricted Stock Units as assumed by
Symantec in the Acquisition shall, to the extent outstanding but not yet vested, vest and become
immediately exercisable or issuable as to all the Symantec shares subject to those options and
units at the time of your termination of employment with the Symantec Employer. You shall have the
limited period specified in each of the applicable option agreements for your Veritas Options to
exercise those Veritas Options following your termination of employment with the Symantec Employer.
The shares issuable to you under your Veritas Restricted Stock Units will be subject to Symantec’s
collection of the applicable withholding taxes.

     • In addition to the Accrued Compensation, you will be entitled to receive the remaining
unpaid portion of your Incentive Bonus as follows: fifty percent (50%) of such portion on your
termination date, and the remaining fifty percent at the end of the twelve (12)-month period
measured from your termination date. During such twelve (12)-month period, you shall be available
to provide consulting services to Symantec for not more than ten (10) hours per month and shall not
perform functions similar to the functions you performed for Symantec or Veritas for any entity
that is a Competing Business. As used herein, “Competing Business” means any entity that develops,
manufactures, sells, licenses, installs, maintains or supports any data protection, storage
management, high availability, application performance management or disaster recovery software or
similar products. In the event of a material breach of your obligations during the foregoing
12-month period, Symantec shall as its remedy be relieved of all further obligations to pay the
remaining unpaid installments of the Incentive Bonus.

     • Symantec shall, at its sole cost and expense, provide you and your spouse and other eligible
dependents with continued health care coverage under the Symantec group health plan, at
substantially the same level of coverage and benefits in effect for them at the time of your
termination of employment, until the earlier of (i) the expiration of the twelve (12)-month period
measured from the first day of the first month following the date of your termination of employment
or (ii) the first date you are covered under another employer’s health benefit program which
provides substantially the same level of benefits without exclusion for pre-existing medical
conditions.

The severance benefits provided under this Section 9 are conditioned upon your delivery of
an effective Release. In addition, such benefits will be in lieu of any entitlement you may have
to notice of

 

 

termination, pay in lieu of notice of termination, or any other severance payment or benefit from
any other Veritas or Symantec Employer source other than your benefits under the Executive
Retention Plan.

10. Definitions. For purposes of this agreement, the following definitions shall be in
effect:

     (a) “Termination without Cause” means termination of your employment by the Symantec Employer
for any reason other than a termination for Cause. Termination without Cause shall be deemed to
occur upon the termination of your employment by reason of death or Permanent Disability. A
termination for “Cause” will mean a termination for any of the following reasons: (i) conduct
constituting willful gross neglect or willful gross misconduct in carrying out your duties,
resulting, in either case, in material economic harm to Symantec, unless you believe in good faith
that such conduct was in, or not opposed to, the best interest of Symantec; (ii) a material breach
by you of one or more obligations under this agreement, and/or the attached Employee Agreement;
(iii) any unjustified refusal to follow reasonable directives of the person to whom you report
relating to the performance of your duties after there has been delivered to you a written demand
for performance which describes the specific material deficiencies in your performance and the
specific manner in which your performance must be improved, all in accordance with the Symantec
Employer performance management plan, and which provides forty (40) business days from the date of
notice, or the amount of time specified in any applicable Symantec Employer performance management
plan, whichever is greater, to remedy such performance deficiencies; (iv) a material
dereliction of the major duties, functions and responsibilities of your position; (v) a material
breach by you of any of your fiduciary obligations as an officer of Symantec; or (vi) your
conviction of a felony crime involving moral turpitude or your commission of any material act of
dishonesty, theft or embezzlement. The Symantec Employer will provide you with written notice of
the reason for termination in the case of any termination for “Cause” and, with respect to a clause
(ii) or (iv) act or omission, a period of not less that forty (40) business days in which to cure
the specified breach or performance deficiency and thereby avoid a termination for Cause by reason
thereof.

     (b) “Permanent Disability” means your inability, by reason of any physical or mental injury or
illness expected to result in death or to be of a continuous duration of six (6) months or more, to
substantially perform the services required for your job title pursuant to this agreement.

     (c) “Resignation for Good Reason” means your resignation due to any one of the following
events taken without your written consent and not corrected within ten (10) days after your
delivery of written notice to Symantec’s Senior Vice President of Human Resources or his/her
designee: (i) a material reduction or change without your written consent in the scope of your
duties or responsibilities, or in your Title or Grade, from the duties, responsibilities, Title or
Grade in effect immediately prior to any such reduction or change; (ii) a change in the position to
which you report which results in you reporting to a person who is more than one level below the
position to which you previously reported; (iii) a reduction in the aggregate dollar amount of your
base salary and Target Bonus by more than fifteen percent (15%); (iv) a relocation of your
principal place of employment by more than sixty (60) miles or (v) the failure of any successor to
Symantec to assume the obligations of Symantec under this agreement.

11. Special Tax Payment. You will be entitled to the special Gross-Up Payment set forth in
Appendix I to this agreement, to the extent one or more payments or benefits you receive in
connection with the Acquisition, whether received before or after the Closing Date, are deemed to
constitute parachute payments under Section 280G of the Internal Revenue Code and you otherwise
qualify for the Gross-Up Payment in accordance with the provisions of Appendix I. However, should
your employment with your Symantec Employer terminate by reason of your voluntary resignation
within the eighteen (18)-month period measured from the Closing Date under circumstances which do
not qualify as a Resignation for Good Reason or by reason of a Termination without Cause, then you
shall not be entitled to any Gross-Up Payment, and to the extent one or more Gross-Up Payments are
made to you prior to the

 

 

termination of your employment under such circumstances, you shall promptly repay those payments on
your termination date.

12. Indemnification. With respect to all matters, transactions, acts or omissions which
occur at or prior to the Closing Date, you shall have all the rights to indemnification and
insurance that are set forth in Section 5.7 of the Merger Agreement and shall be entitled to
enforce Section 5.7 against Symantec. A copy of Section 5.7 of the Merger Agreement is attached
hereto as Exhibit C. You will be provided with the standard form of indemnity agreement
and fiduciary insurance currently provided to executive officers of Symantec, a copy of which is
set forth as Exhibit D attached hereto.

13. Full-Time Employment/ Conflicts of Interest

You agree that during your employment with the Symantec Employer you will not engage in any other
employment or business related activity unless you obtain prior written approval from your manager.
You further agree that you have disclosed to Symantec all of your existing employment and/or
business relationships, including, but not limited to, any consulting or advising relationships,
outside directorships, investments in privately held companies, and any other relationships that
may create a conflict of interest.

14. Documentation

This offer is contingent upon the successful completion of the Acquisition, your consent to, and
results satisfactory to the Symantec Employer of, a background check as well as your execution of
the Employee Agreement in the form attached hereto as Exhibit E. The Immigration Reform
and Control Act of 1986 requires that Symantec review proof of all new employees’ identity and
authorization to work in the U.S. In addition, Symantec is required by law to verify employees’
eligibility to access certain technology that Symantec designs, produces, and uses and which is
subject to export controls. Accordingly, this offer is necessarily contingent upon Symantec’s
receipt of satisfactory evidence that it can comply with these legal requirements with respect to
you. Satisfactory completion of the enclosed Form I-9 and Form I-9 Supplement–Symantec Corporation
Technology Transfer Assessment, and presentation of satisfactory documentary evidence of your
identity and authorization to work in the U.S. will need to be accomplished prior to the Closing
Date. The Form I-9 contains information regarding what documentary evidence is acceptable for
completing the form. A Form I-9 and a Form I-9 Supplement – Symantec Corporation Technology
Transfer Assessment are enclosed.

15. Miscellaneous

At all times during your employment, you agree to abide by the Symantec Employer’s employment
policies and procedures, as such policies and procedures may be in effect from time to time.
However, if any policy or procedure conflicts with any express term of this agreement, this
agreement will control.

You agree that there were no promises or commitments made to you regarding your employment with
Symantec or the Symantec Employer except as set forth in this letter. Except as provided for
herein, this agreement supersedes and replaces (i) any prior verbal or written agreements between
you and Symantec and (ii) any prior verbal or written agreements between you and Company relating
to the subject matter hereof, including, but not limited to, benefits under the Prior Agreements
except as specifically set forth above.

Upon the Closing Date, this agreement, the Employee Agreement and the Stock Option and Restricted
Stock Unit Assumption Agreement, which documents are substantially similar to those currently
required to be entered into by other employees located in the United States, will be the entire
agreement relating to your employment with the Symantec Employer and it shall supersede and replace
any prior verbal or written agreements between you and Symantec or Veritas pertaining to employment
or benefits upon a change in control or termination of your employment, except as specifically
provided above. In addition,

 

 

any confidential/proprietary/trade secrets information and inventions agreement(s) or any
obligations you have to Veritas regarding your refraining from soliciting customers or employees of
Veritas, or any predecessor thereto, will remain in effect as it pertains to subject matters
existing prior to the Closing Date.

This agreement may be amended or altered only in a dated document signed by you and Symantec’s
Senior Vice President of Human Resources or his/her designee. No waiver of any term or provision
of this agreement will be valid unless such waiver is in writing signed by the party against whom
enforcement of the waiver is sought. The waiver of any term or provision of this agreement will
not apply to any subsequent breach of this agreement.

This agreement will be construed and interpreted in accordance with the laws of the State of
California. Each of the provisions of this agreement is severable from the others, and if any
provision hereof will be to any extent unenforceable, it and the other provisions will continue to
be enforceable to the full extent allowable, as if such offending provision had not been a part of
this agreement.

[Signature Page Follows]

 

 

     If you have any questions about this offer, please contact me. If you find this agreement
acceptable, please sign and date this letter below and return it to me. This offer, if not
accepted, will expire immediately after the closing of the Acquisition.

	 	 	 	 	 
	 	Sincerely,

Symantec Corporation 

a Delaware corporation

 	 
	 	By:  	/s/ Rebecca Ranninger	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

I agree to the terms and conditions in this offer.

Date:  December 16,
2004

 /s/ Edwin Gillis

«First_Name» «Lastname»

Enclosures:

	 	 	 	 	 
	 	 	Exhibit A
	 	Veritas Change in Control Agreement

	 	 	Exhibit B
	 	General Release Agreement

	 	 	Exhibit C
	 	Indemnification Provision

	 	 	Exhibit D
	 	Form of Indemnity Agreement

	 	 	Exhibit E
	 	Employee Agreement

	 	 	Appendix I
	 	Special Tax Payments

[Signature Page to Employment Agreement]

 

 

Exhibit A

Veritas Change in Control Agreement

 

 

CHANGE IN CONTROL AGREEMENT

     
This Change in Control Agreement is entered into between VERITAS
Software Corporation, a Delaware corporation (“VERITAS” or
the “Corporation”), and Ed Gillis
(“Executive”) as of March 15, 2004. Terms that are not
defined in the text of this Agreement are defined in Exhibit A
hereto.

     
1. Term, Purpose, and
Governing Documents. This Agreement shall remain in effect until March 15, 2005, at
which time it will automatically renew for a subsequent one-year term
unless VERITAS provides notice of its intention not to renew at least
one month prior to the end of the one-year term; however, VERITAS may
not provide such notice of non-renewal if the Company is the subject
of a possible Change in Control or for a one-year period following a
Change in Control. This Change in Control Agreement shall supersede
any and all written or verbal agreements related to severance
benefits in the event of a change in control; however, all other
terms contained in VERITAS’ offer letter and/or employment
agreement with Executive (including Executive’s at-will
employment relationship with VERITAS) shall remain unchanged.

     
2. Benefits in the Event of a Change in
Control. In the event of a Change in Control pursuant to which the
acquiring or successor company assumes or continues in effect the
Executive’s Options, issues comparable substitute options or
stock based awards for the Executive’s Options or provides a
cash incentive program that preserves the spread existing under the
Executive’s Options, all as provided in the applicable Plan(s),
then each of the Executive’s Options (or substitute options or stock based
awards) shall vest and become exercisable, immediately upon the
consummation of the Change in Control, with respect to fifty percent
(50%) of the unvested shares under each such Option. In the event the
acquiring or successor company does not assume or continue in effect
the Executive’s Options or provide a cash incentive program that preserves the spread
existing under the Executive’s Options pursuant to the terms of
the applicable Plan(s), then each of the Executive’s Options
shall vest and become exercisable, immediately upon consummation of
the Change in Control, with respect to 100% of the unvested shares
under each such Option.

     
3. Severance Benefits in the Event of a
Change in Control. If Executive’s employment with VERITAS
terminates because of a Termination Without Cause or a Resignation
for Good Reason within twelve (12) months after consummation of a
Change in Control, and if Executive complies with the Restrictive
Covenant set forth below, then Executive shall be entitled to receive
the following severance benefits:

		
	 	     
    (a) Salary Continuation. Executive shall continue to
receive Executive’s base salary in effect on the termination
date for a period of twelve (12) months from the date of
Executive’s termination of employment (the “Termination
Date”). These payments shall be made bi-weekly on VERITAS’
standard payroll dates and shall be subject to required deductions
and withholdings.

1

 

     
(b)     Target Bonus
Consideration.     Executive shall
receive Target Bonus consideration consisting of two components,
both of which are based upon the Target Bonus in effect for
Executive immediately prior to the Change in Control:
(1) an amount equal to one hundred percent (100%) of the
Executive’s annual Target Bonus; and (2) an additional
amount that represents a prorated percentage of the
Executive’s annual Target Bonus based upon the number of
days that have passed in the current fiscal year as of the
Termination Date. The Target Bonus consideration shall be paid
within thirty (30) days of the Termination Date and shall
be subject to required deductions and withholdings.

     
(c)     Option
Acceleration.     Each Option
outstanding at the time of Executive’s termination, but not
otherwise vested and exercisable for all of the shares subject
to that Option, will immediately vest on an accelerated basis so
that each such Option shall become exercisable for an additional
amount equal to one hundred percent (100%) of the then unvested
shares under such Option, and any shares subject to those
Options which are not otherwise issued and outstanding at the
time of such acceleration shall be issued to Executive in
accordance with the terms of the Options.

     
(d)     Benefits.     To the
extent provided by the federal COBRA law or, if applicable,
state insurance laws, and VERITAS’ group health insurance
policies, Executive will be eligible for continuation of
Executive’s group health insurance. If Executive timely
elects such continuation by completing and returning the
necessary COBRA enrollment forms, VERITAS shall pay the premiums
necessary to continue Executive’s then-current health
insurance coverage (medical, dental and vision) for Executive
and his eligible dependents for a period of twelve (12) months after the Termination Date or (if earlier)
until the Executive and his dependents are covered under another
employer’s health care benefit plan without exclusion for
any pre-existing medical condition.

     
(e)     Restrictive
Covenant.     The severance
benefits described in this section are subject to a restrictive
covenant. Specifically, in consideration of the foregoing
benefits, Executive agrees to the following: (1) at the
time of signing this Agreement Executive shall also execute the
VERITAS Confidentiality and Intellectual Property Agreement;
(2) Executive shall execute and deliver to VERITAS a
Release in a form acceptable to VERITAS in exchange for
receiving severance benefits (see Exhibit B);
(3) during the twelve (12) month period Executive
receives severance benefits Executive shall be available to
provide consulting services to VERITAS during such period for
not more than ten (10) hours per month; and (4) during
the twelve (12) month consulting period Executive shall
not perform functions similar to the functions Executive
performed for VERITAS for any entity that is a Competing
Business. As used herein, a Competing Business is any entity
that develops, manufactures, sells, licenses, installs,
maintains or supports any data protection, storage management,
high availability, application performance management or
disaster recovery software or similar products.

     Executive
acknowledges and agrees that Executive shall have access to highly
confidential information during Executive’s employment with
VERITAS and that the foregoing restrictive covenant is reasonable to
protect this confidential information. Should Executive elect to
receive these severance benefits, Executive also understands

2

 

that Executive is voluntarily electing to adhere to the
restrictive covenant as well. All severance benefits provided
for under this Agreement will be forfeited in the event
Executive elects to accept the benefits and later challenge the
restrictive covenant. Executive further acknowledges and agrees
that the promises and restrictive covenants provided herein do
not, and will not, prevent or restrict Executive in any way from
engaging in any lawful profession, trade, or business.

4.     Limitation
on Benefits. In the event that any payments to which
Executive becomes entitled in accordance with the provisions of
this Agreement would otherwise constitute a parachute payment
under Code Section 280G, then such payments will be subject
to reduction to the extent necessary to assure that Executive
receives only the greater of (i) the amount of those
payments which would not constitute such a parachute payment or
(ii) the amount which yields Executive the greatest
after-tax amount of benefits after taking into account any
excise tax imposed on the payments provided to Executive under
this Agreement (or on any other benefits to which Executive may
be entitled in connection with any change in control or
ownership of VERITAS or the subsequent termination of
Executive’s employment with VERITAS) under Code
Section 4999. Should a reduction in benefits be required to
satisfy the benefit limit of the foregoing paragraph, then
Executive’s salary continuation payments shall accordingly
be reduced to the extent necessary to comply with such benefit
limit. Should such benefit limit still be exceeded following
such reduction, then the number of shares which would otherwise
be purchasable under the vesting-accelerated portion of each of
Executive’s Options (based on the amount of the parachute
payment attributable to such option under Code
Section 280G) shall be reduced to the extent necessary to
eliminate such excess, with such acceleration of vesting being
cancelled in the reverse order of the date of grant of the stock
awards unless Executive elects in writing a different order of
cancellation. The accounting firm engaged by VERITAS for general
audit purposes as of the day prior to the effective date of the
Change in Control shall be retained by VERITAS to perform the
foregoing calculations at VERITAS’ expense.

5.     Remedies
in the Event of Executive’s Breach. Executive
acknowledges and agrees that any breach of Executive’s
obligations hereunder shall constitute a material breach of this
Agreement and shall, in addition to any other remedies available
in law or equity, allow VERITAS to cease performing its
obligations hereunder, including its obligations to provide any
of the benefits set forth in Sections 2 and 3 herein.

6.     Successors
and Assigns. The provisions of this Agreement shall
inure to the benefit of, and shall be binding upon,
(i) VERITAS and its successors and assigns, including any
successor entity by merger, consolidation or transfer of all or
substantially all of VERITAS’ assets (whether or not such
transaction constitutes a Change in Control), and (ii) the
Executive, the personal representative of Executive’s
estate and Executive’s heirs and legatees.

7.     Notices.
Any and all notices, demands or other communications required or
desired to be given hereunder by any party shall be in writing
and shall be validly given or made to another party if delivered
either personally or if deposited in the United States

3

 

mail, certified or registered, postage prepaid, return receipt
requested.

8. Governing
Documents. This Agreement, and its Exhibits, together
with (i) the stock option agreements evidencing
Executive’s currently outstanding Options and any future
Option grants, (ii) Executive’s current or subsequent
Confidentiality and Intellectual Property Agreement, and
(iii) any outstanding promissory notes of Executive payable
to or to the order of VERITAS, shall constitute the entire
agreement and understanding of VERITAS and Executive with
respect to the payment of benefits in the event of a Change in
Control and shall supersede all prior and contemporaneous
written or verbal agreements and understandings between
Executive and VERITAS relating to such subject matter. In the
event of any conflict between this Agreement and any of the
aforementioned agreements, this Agreement shall govern.

9. Amendment.
This Agreement only may be amended by written instrument signed
by Executive and an authorized officer of VERITAS.

10. Governing
Law. The provisions of this Agreement shall be
construed and interpreted under the laws of the state that is
Executive’s principal place of employment at the time of
any alleged breach of this Agreement.

11. Severability.
If an arbitrator or court of competent jurisdiction determines
that any term or provision of this Agreement is invalid or
unenforceable, in whole or in part, then the remaining terms and
provisions hereof shall be unimpaired. Such arbitrator or court
will have the authority to modify or replace the invalid or
unenforceable term or provision with a valid and enforceable
term or provision that most accurately embodies the
parties’ intention with respect to the invalid or
unenforceable term or provision or, if such provision cannot be
so amended without materially altering the intention of the
parties, then such provision will be stricken, and the remainder
of this Agreement shall continue in full force and effect. The
invalidity of any provision of this Agreement shall in no way
affect (to the maximum extent permissible by law) the
application of such provision under circumstances different from
those adjudicated by the arbitrator or court, the application of
any other provision of this Agreement, or the enforceability or
invalidity of this Agreement as a whole.

12. Dispute
Resolution. Executive and the Company agree that any
dispute arising out of or relating to this Change in Control
Agreement will be resolved, to the fullest extent permitted by
law, by final, binding and confidential arbitration in San
Francisco, California conducted by Judicial Arbitration and
Mediation Services (“JAMS”) under its then-existing
rules and procedures. Executive acknowledges that by agreeing
to this arbitration procedure, both Executive and the Company
waive the right to resolve any such dispute through a trial by
jury or judge or by administrative proceeding. In addition
to and notwithstanding those rules, Executive and the Company
agree that the arbitrator shall: (a) have the authority to
compel adequate discovery for the resolution of the dispute and
to award such relief as would otherwise be permitted by law; and
(b) issue a written arbitration decision including the
arbitrator’s essential findings and conclusions and a
statement of the award. The Company shall pay all of the JAMS
arbitration fees in excess of those administrative fees

4

 

Executive would be required to pay if the dispute were decided
in a court of law. Nothing in this Agreement is intended to
prevent either Executive or the Company from obtaining
injunctive relief in court to prevent irreparable harm pending
the conclusion of any such arbitration.

     
IN WITNESS WHEREOF, the parties have executed this Change
in Control Agreement as of the day and year written above.

		
	 	
    VERITAS SOFTWARE CORPORATION

			
	 	By: 	/s/ John F. Brigden

		
	 	
     

			
	 	Title: 	Senior Vice President General Counsel

		
	 	
     

	 
	 	
    EXECUTIVE
	 
	 	
    /s/ Ed Gillis
    
	 	
     

	 	
    Ed Gillis

			
	 	Date: 	

		
	 	
     

5

 

EXHIBIT A

DEFINITIONS

     
For purposes of this Agreement, the following definitions shall
be in effect:

     
Change in Control means a change in the ownership or
control of VERITAS effected through the consummation of any of
the following transactions:

		
	 	     
    (i) a merger, consolidation or reorganization approved by
    VERITAS’ stockholders, unless representing more than fifty
    percent (50% of the total combined voting power of the voting
    securities of the successor corporation are immediately
    thereafter beneficially owned, directly or indirectly and in
    substantially the same proportion, by the persons who
    beneficially owned VERITAS’ outstanding voting securities
    immediately prior to such transaction; or
	 
	 	     
    (ii) the sale, transfer or other disposition of all or
    substantially all of VERITAS’ assets in complete
    liquidation or dissolution of VERITAS; or
	 
	 	     
    (iii) any transaction or series of related transactions
    pursuant to which any person or any group of persons comprising
    a “group” within the meaning of Rule 13d-5(b)(1)
    under the Securities Exchange Act of 1934, as amended (other
    than VERITAS or a person that, prior to such transaction or
    series of related transactions, directly or indirectly controls,
    is controlled by or is under common control with, VERITAS)
    becomes directly or indirectly the beneficial owner (within the
    meaning of Rule 13d-3 of the Securities Exchange Act of
    1934, as amended) of securities possessing (or convertible into
    or exercisable for securities possessing) more than fifty
    percent (50%) of the total combined voting power of
    VERITAS’ securities outstanding immediately after the
    consummation of such transaction or series of related
    transactions, whether such transaction involves a direct
    issuance from VERITAS or the acquisition of outstanding
    securities held by one or more of VERITAS’ stockholders.

     
Code means the Internal Revenue Code, as amended from
time to time.

     
Disability means the Executive’s inability, by
reason of any physical or mental injury or illness expected to
result in death or to be of a continuous duration of six
(6) months or more, to substantially perform the services
required of him/her under this Agreement.

     
Option means any stock or stock based award granted to
the Executive under any of the Plans or otherwise, whether in
the form of restricted stock, restricted stock units, phantom
stock or other stock-based grant, to purchase shares of Common
Stock which is outstanding on the Termination Date.

     
Plan means any one of the following equity compensation
plans: (i) the VERITAS 1993 Equity Incentive Plan,
(ii) the VERITAS 2003 Stock Incentive Plan, as

6

 

amended or restated from time to time, and (iii) any
successor stock equity compensation plan to either of the
foregoing plans subsequently implemented by VERITAS.

     
Resignation for Good Reason means Executive’s
resignation due to any one of the following events without
Executive’s consent: (i) a material reduction in the
scope of Executive’s duties, responsibilities, authority or
reporting structure from the duties, responsibilities, authority
and reporting structure in effect immediately prior to any such
reduction; (ii) a reduction in the aggregate dollar amount
of Executive’s base salary and Target Bonus by more than
fifteen percent (15%); (iii) a relocation of
Executive’s principal place of employment by more than
sixty (60) miles; or (iv) the failure of a successor
to VERITAS to assume the obligation of this Agreement.

     
Target Bonus means the annual target incentive bonus to
which Executive may become entitled under VERITAS’
Executive Bonus Plan (or any successor plan) for one or more
fiscal years upon VERITAS’ attainment of the performance
milestones designated for the applicable year and
Executive’s attainment of any personal objectives specified
for him/her for that year.

     
Termination Without Cause means VERITAS’ termination
of Executive’s employment for any reason other than a
Termination for Cause. Termination Without Cause shall
not be deemed to occur upon the termination of
Executive’s employment by reason of death or Disability.
“Cause” for termination shall mean: (i) conduct
that constitutes willful gross neglect or willful gross
misconduct in carrying out Executive’s duties, resulting,
in either case, in material economic harm to the Corporation,
unless Executive believed in good faith that such conduct was
in, or not opposed to, the best interest of VERITAS; (ii) a
breach by Executive of one or more of Executive’s
obligations under this Agreement, Executive’s Offer Letter
and/or Executive’s Proprietary Information and Inventions
Agreement with VERITAS; (iii) any unjustified refusal to
follow reasonable directives of the Company’s Chief
Executive Officer or its Board of Directors;
(iv) Executive’s material dereliction of the major
duties, functions and responsibilities of Executive’s
position; (v) a material breach by Executive of any of
Executive’s fiduciary obligations as an officer of VERITAS;
or (vi) Executive’s conviction of a felony crime
involving moral turpitude or Executive’s commission of any
act of dishonesty, theft or embezzlement.

7

 

EXHIBIT B

FORM OF RELEASE

I understand that my employment with VERITAS Software
Corporation (together with its subsidiaries, the
“Company”) terminated
effective                     ,
200     . I also understand that,
pursuant to the Change in Control Agreement between the Company
and me, I am required to sign this Release in exchange for
certain benefits under the Agreement. I further understand that,
regardless of whether I sign this Release, the Company will pay
me all accrued salary and vacation earned through my termination
date, to which I am entitled by law.

I hereby generally and completely release the Company and its
directors, officers, employees, shareholders, partners, agents,
attorneys, predecessors, successors, parent and subsidiary
entities, insurers, affiliates, and assigns from any and all
claims, liabilities and obligations, both known and unknown,
that arise out of or are in any way related to events, acts,
conduct, or omissions occurring prior to my signing this
Release. This general release includes, but is not limited to:
(1) all claims arising out of or in any way related to my
employment with the Company or the termination of that
employment; (2) all claims related to my compensation or
benefits from the Company, including salary, bonuses,
commissions, vacation pay, expense reimbursements, severance
pay, fringe benefits, stock, stock options, or any other
ownership interests in the Company; (3) all claims for
breach of contract, wrongful termination, and breach of the
implied covenant of good faith and fair dealing; (4) all
tort claims, including claims for fraud, defamation, emotional
distress, and discharge in violation of public policy; and
(5) all federal, state, and local statutory claims,
including claims for discrimination, harassment, retaliation,
attorneys’ fees, or other claims arising under the federal
Civil Rights Act of 1964 (as amended), the federal Americans
with Disabilities Act of 1990, the Age Discrimination in
Employment Act of 1967 (“ADEA”), and the California
Fair Employment and Housing Act (as amended).

I acknowledge that I am knowingly and voluntarily waiving and
releasing any rights I may have under the ADEA, as amended. I
also acknowledge that the consideration given for the waiver and
release in the preceding paragraph hereof is in addition to
anything of value to which I was already entitled. I further
acknowledge that I have been advised by this writing, as
required by the ADEA, that: (a) my waiver and release do
not apply to any rights or claims that may arise after the
execution date of this Release; (b) I have been advised
hereby that I have the right to consult with an attorney prior
to executing this Release (although I may choose not to do so);
(c) I have twenty-one (21) days to consider this
Release (although I may choose to voluntarily execute this
Release earlier); (d) I have seven (7) days following the
execution of this Release to revoke the Release in a writing to the Company; and
(e) this Release will not be effective until the date upon
which the revocation period has expired, which will be the
eighth day after this Release is executed by me.

I UNDERSTAND THAT THIS AGREEMENT INCLUDES A RELEASE OF ALL KNOWN
AND UNKNOWN CLAIMS. In giving this release, which includes claims

8

 

that may be unknown to me at present, I acknowledge that I have
read and understand Section 1542 of the California Civil
Code which reads as follows: “A general release does not
extend to claims which the creditor does not know or suspect to
exist in his favor at the time of executing the release, which
if known by him must have materially affected his settlement
with the debtor.” I expressly waive and relinquish all
rights and benefits under that section and any law of any
jurisdiction of similar effect with respect to my release of any
unknown or unsuspected claims I may have against the Company.

Having read and understood
the foregoing, I hereby agree to the terms and conditions stated
above.

	 	 	 
	 	 	 
	
    
    Executive

    	 	
    Date

9

 

Exhibit B

General Release Agreement

In consideration of the benefits offered to me by Symantec Corporation (“Symantec”) pursuant to my
Employment Agreement with Symantec dated December 15, 2004 (the “Employment Agreement”), and in
connection with the termination of my employment, I agree to the following release (the “Release”).

     1. On behalf of myself, my heirs, executors, administrators, successors, and assigns, I hereby
fully and forever release and discharge Symantec, its current, former and future parents,
subsidiaries, affiliated companies, related entities, employee benefit plans, and their
fiduciaries, predecessors, successors, officers, directors, shareholders, agents, employees and
assigns (collectively, the “Company”) from any and all claims, causes of action, and liabilities up
through the date of my execution of the Release which arise from or relate to my employment with
Symantec and/or any predecessor to Symantec and the termination of such employment, including
(without limitation) (i) claims relating to wrongful discharge of employment, (ii) claims for
physical or emotional injury, including claims for negligent or intentional infliction of emotional
distress in connection with my employment relationship or the termination of that relationship,
(iii) the following claims relating to stock options or other stock or stock-based awards received
from Symantec in connection with my employment with Symantec: vesting rights (other than rights
expressly provided under the Employment Agreement or the applicable grant or award agreement),
exercise periods beyond those specified in applicable grant or award documents, and promises or
representations regarding additional grants or awards beyond those which I hold at the time of my
termination, (iv) defamation, libel or slander to the extent those claims relate to matters
pertaining to my job performance with the Company, my actions as an executive or employee of the
Company or other activities in connection with my employment with the Company or the termination of
that employment or (v) damages asserted in shareholder derivative actions or shareholder class
actions against the Company and its officers and Board of Directors which relate to transactions or
matters which occurred during the period of my employment with Symantec (collectively the
“Claims”). All such Claims (including related attorneys’ fees and costs) are barred without regard
to whether those Claims are based on any alleged breach of a duty arising in statute, contract, or
tort. This expressly includes waiver and release of any rights and claims relating to my
employment with Symantec and/or any predecessor to Symantec and the termination of such employment
and the other released Claims which arise under any and all laws, rules, regulations, and
ordinances including, but not limited to: Title VII of the Civil Rights Act of 1964; the Older
Workers Benefit Protection Act; the Americans With Disabilities Act; the Age Discrimination in
Employment Act; the Fair Labor Standards Act; the National Labor Relations Act; the Family and
Medical Leave Act; the Employee Retirement Income Security Act of 1974, as amended (“ERISA”); the
Workers Adjustment and Retraining Notification Act; the California Fair Employment and Housing Act
(if applicable); the provisions of the California Labor Code (if applicable); the Equal Pay Act of
1963; and any other state or governmental entity, federal law or regulation relating to employment
or employment discrimination. The parties agree to apply California law in interpreting the
Release. Accordingly, I further waive any rights under Section 1542 of the Civil Code of the State
of California or any similar state statute. Section 1542 states: “A general release does not
extend to claims which the creditor does not know or suspect to exist in his favor at the time of
executing the release, which, if known to him, must have materially affected his settlement with
the debtor.” This Release does not extend to, and has no effect upon, (i) any compensation or
benefits that have accrued, and to which I have become vested or otherwise entitled, whether in
connection with my employment with Symantec or the termination of that employment, under the
Employment Agreement or any employee benefit plan within the meaning of ERISA sponsored by the
Company, (ii) my indemnification rights under Section 12 of the Employment Agreement or (iii) my
rights to any special tax payments under Section 11 of the Employment Agreement.

 

 

     2. In understanding the terms of the Release and my rights, I have been advised to consult
with an attorney of my choice prior to executing the Release. I understand that nothing in the
Release shall prohibit me from exercising legal rights that are, as a matter of law, not subject to
waiver such as: (a) my rights under applicable workers’ compensation laws; (b) my right, if any, to
seek unemployment benefits; and (c) my right to file a charge with the Equal Opportunity Commission
(EEOC) challenging the validity of my waiver of claims under the ADEA.

     3. I understand and agree that Symantec will not provide me with the benefits unless I execute
the Release. I also understand that I have received or will receive, regardless of the execution
of the Release, all wages owed to me together with any accrued but unused vacation pay, less
applicable withholdings and deductions, earned through my termination date.

     4. As part of my existing and continuing obligations to Symantec, I have returned to Symantec
all Symantec documents (and all copies thereof) and other Symantec property that I have had in my
possession at any time, including but not limited to Symantec files, notes, drawings, records,
business plans and forecasts, financial information, specification, computer-recorded information,
tangible property (including, but not limited to, computers, laptops, pagers, etc.), credit cards,
entry cards, identification badges and keys; and any materials of any kind which contain or embody
any proprietary or confidential information of Symantec (and all reproductions thereof). I
understand that, even if I did not sign the Release, I would still be bound by any and all
confidential/proprietary/trade secret information, non-disclosure and inventions assignment
agreement(s) signed by me in connection with my employment with Symantec, or with a predecessor or
successor of Symantec (“Employee Agreements”), pursuant to the terms of such agreement(s).

     5. I represent and warrant that I am the sole owner of all claims relating to my employment
with Symantec and/or with any predecessor of Symantec, and that I have not assigned or transferred
any claims relating to my employment to any other person or entity.

     6. I agree to keep the benefits and the provisions of the Release confidential and not to
reveal its contents to anyone except my lawyer, my spouse and/or my financial consultant or except
as required by applicable law or regulation.

     7. I understand and agree that the Release shall not be construed at any time as an admission
of liability or wrongdoing by either the Company or myself.

     8. I agree that I will not make any negative or disparaging statements or comments, either as
fact or as opinion, about the Company, its employees, officers, directors, shareholders, vendors,
products or services, business, technologies, market position or performance.

     9. Any controversy or any claim arising out of or relating to the interpretation,
enforceability or breach of the Release shall be settled by arbitration in accordance with
Symantec’s Arbitration Agreement, which I acknowledge having previously received. If for any
reason this Arbitration Agreement is not enforceable, I agree to arbitration under the employment
arbitration rules of the American Arbitration Association or any successor hereto. The parties
further agree that the arbitrator shall not be empowered to add to, subtract from, or modify, alter
or amend the terms of the Release. Any applicable arbitration rules or policies shall be
interpreted in a manner so as to ensure their enforceability under applicable state or federal law.
The cost of such arbitration shall be borne by the Company.

     10. I agree that I have had at least twenty-one (21) calendar days in which to consider
whether to execute the Release, no one hurried me into executing the Release during that period,
and no one coerced me into executing the Release. I understand that the offer of the benefits and
the Release shall expire on the twenty-second (22nd) calendar day after my employment
termination date if I have not accepted it by that time. I further understand that Symantec’s
obligations under the Release shall not

 

 

become effective or enforceable until the eighth (8th) calendar day after the date
I sign the Release provided that I have timely delivered it to Symantec (the “Effective Date”) and
that in the seven (7) day period following the date I deliver a signed copy of the Release to
Symantec I understand that I may revoke my acceptance of the Release. I understand that the
benefits will become available to me on or about the fourteenth (14th) calendar day
after the Effective Date.

     11. In executing the Release, I acknowledge that I have not relied upon any statement made by
Symantec, or any of its representatives or employees, with regard to the Release unless the
representation is specifically included herein. Furthermore, the Release contains our entire
understanding regarding eligibility for and the payment of severance benefits and supersedes any or
all prior representation and agreement regarding the subject matter of the Release. However, the
Release does not modify, amend or supersede written Symantec agreements that are consistent with
enforceable provisions of this Agreement such as the Employee Agreement and any stock, stock
option, restricted stock unit and/or stock purchase agreements between Symantec and me. Once
effective and enforceable, this agreement can only be changed by another written agreement signed
by me and an authorized representative of Symantec.

     12. Should any provision of the Release be determined by an arbitrator or court of competent
jurisdiction to be wholly or partially invalid or unenforceable, the legality, validity and
enforceability of the remaining parts, terms, or provisions are intended to remain in full force
and effect. I acknowledge that I have obtained sufficient information to intelligently exercise my
own judgment regarding the terms of the Release before executing the Release.

[Signature Page Follows]

 

 

EMPLOYEE’S ACCEPTANCE OF RELEASE

BEFORE SIGNING MY NAME TO THE RELEASE, I STATE THE FOLLOWING: I HAVE READ THE RELEASE, I
UNDERSTAND IT AND I KNOW THAT I AM GIVING UP IMPORTANT RIGHTS. I HAVE OBTAINED SUFFICIENT
INFORMATION TO INTELLIGENTLY EXERCISE MY OWN JUDGMENT. I HAVE BEEN ADVISED THAT I SHOULD CONSULT
WITH AN ATTORNEY BEFORE SIGNING IT, AND I HAVE SIGNED THE RELEASE KNOWINGLY AND VOLUNTARILY.

	 	 	 
	

	 	Date delivered to employee                     ,                     .
	 
	 	 
	

	 	Executed this                      day of                     ,                     .
	 
	 	 

	 	 	 
	

	 	

Employee Signature
	 
	 	 
	

	 	

Employee Name (Please Print)

[Signature Page to General Release Agreement]

 

 

Exhibit C

Indemnification Provision

     5.7 Indemnification and Insurance.

          (a) Indemnification and Advancement. From and after the Effective Time, each of
Parent and the Surviving Corporation shall, and Parent shall cause the Surviving Corporation to:
(1) indemnify and hold harmless each person who served as a director or officer of the Company or
its Subsidiaries prior to the Effective Time (collectively, the “Company Indemnified Parties”) to
the fullest extent authorized or permitted by Delaware law, as now or hereafter in effect, in
connection with any Claim (as defined below) and any judgments, fines (including excise taxes),
penalties and amounts paid in settlement (including all interest, assessments and other charges
paid or payable in connection with or in respect of such judgments, fines, penalties or amounts
paid in settlement) resulting therefrom; and (2) promptly pay on behalf of or, within 30 days after
any request for advancement, advance to each of the Company Indemnified Parties, to the fullest
extent authorized or permitted by Delaware law, as now or hereafter in effect, any Expenses (as
defined below) incurred in defending, serving as a witness with respect to or otherwise
participating in any Claim in advance of the final disposition of such Claim, including payment on
behalf of or advancement to the Company Indemnified Party of any Expenses incurred by such Company
Indemnified Party in connection with enforcing any rights with respect to such indemnification
and/or advancement. The indemnification and advancement obligations of Parent and the Surviving
Corporation pursuant to this Section 5.7 shall extend to acts or omissions occurring at or
before the Effective Time and any Claim relating thereto (including with respect to any acts or
omissions occurring in connection with the approval of this Agreement and the consummation of the
transactions contemplated hereby and any Claim relating thereto) and all rights to indemnification
and advancement conferred hereunder shall continue as to a person who has ceased to be a director
or officer of the Company or its Subsidiaries prior to the Effective Time and shall inure to the
benefit of such person’s heirs, executors and personal and legal representatives. As used in this
Section 5.7, (1) the term “Claim” means any threatened, asserted, pending or completed
action, suit or proceeding, or any inquiry or investigation, whether instituted by the Company or
any governmental agency or any other party, that any Company Indemnified Party in good faith
believes might lead to the institution of any such action, suit or proceeding, whether civil,
criminal, administrative, investigative or other, including any arbitration or other alternative
dispute resolution mechanism, as a result of or in connection with such Company Indemnified Party’s
service as a director, officer, trustee, employee, agent, or fiduciary of the Company or any of its
Subsidiaries, or any employee benefit plan maintained by any of the foregoing at or prior to the
Effective Time; and (2) the term “Expenses” means attorneys’ fees and all other costs, expenses and
obligations (including, without limitation, experts’ fees, travel expenses, court costs, retainers,
transcript fees, duplicating, printing and binding costs, as well as telecommunications, postage
and courier charges) paid or incurred in connection with investigating, defending, being a witness
in or participating in (including on appeal), or preparing to investigate, defend, be a witness in
or participate in, any Claim for which indemnification is authorized pursuant to this Section
5.7, including any action relating to a claim for indemnification or advancement brought by a
Company Indemnified Party.

          (b) Certificate of Incorporation, Bylaws and Indemnification Agreements. In
furtherance and not in limitation of Section 5.7(a) hereof, from and after the Effective
Time, each of Parent and the Surviving Corporation shall, and Parent shall cause the Surviving
Corporation to: (1) include and cause to be maintained in the Surviving Corporation’s (or any
successor’s) Certificate of Incorporation and Bylaws for a period of at least six years from and
after the Effective Time,

 

 

provisions regarding elimination of liability of directors, indemnification of directors,
officers and employees and advancement of expenses which are no less advantageous to the intended
beneficiaries than the corresponding provisions contained in the Company’s Certificate of
Incorporation and Bylaws, in each case as in effect on the Agreement Date; and (2) otherwise keep
in full force and effect, and comply with the terms and conditions of, any agreement in effect as
of the Agreement Date between or among the Company or any of its Subsidiaries and any Company
Indemnified Party providing for the indemnification of such Company Indemnified Party.

          (c) Insurance. For a period of six years after the Effective Time, Parent shall cause
to be maintained in effect the current policies of directors’ and officers’ and fiduciary liability
insurance maintained by the Company, including with respect to Claims arising from facts or events
which occurred on or before the Effective Time (including those related to this Agreement and the
transactions contemplated hereby); provided, that Parent may substitute therefor policies of at
least the same coverage and amounts containing terms and conditions which are no less advantageous
to former officers and directors of the Company; and provided, further, that if the aggregate
annual premiums for such policies at any time during such period will exceed 300% of the per annum
premium rate paid by the Company and its Subsidiaries as of the Agreement Date for such policies,
then Parent shall only be required to provide such coverage as will then be available at an annual
premium equal to 300% of such rate. The provisions of the immediately preceding sentence shall be
deemed to have been satisfied if prepaid policies have been obtained prior to the Effective Time
for purposes of this Section 5.7(b), which policies provide such directors and officers
with coverage for an aggregate period of six years after the Effective Time, including with respect
to acts or omissions occurring at or prior to the Effective Time (including with respect to acts or
omissions occurring in connection with approval of this Agreement and consummation of the
transactions contemplated hereby), and nothing in Section 5.1(a) shall prohibit the Company
from obtaining such prepaid policies prior to the Effective Time, provided that the cost thereof
shall not exceed 300% of the per annum premium rate paid by the Company and its Subsidiaries as of
the Agreement Date for such policies. If such prepaid policies have been obtained prior to the
Effective Time, each of Parent and the Surviving Corporation shall, and Parent shall cause the
Surviving Corporation to, maintain such policies in full force and effect for their duration.

          (d) Survival of Claims. Notwithstanding anything herein to the contrary and to the
maximum extent permitted by Applicable Law, if any Claim is made or brought against any Company
Indemnified Party on or prior to the sixth anniversary of the Effective Time, the provisions of
this Section 5.7 shall continue in effect until the final disposition of such Claim.

          (e) Successors. If Parent, the Surviving Corporation or any of their respective
successors or assigns (1) shall consolidate with or merge with or into any other Person and shall
not be the continuing or surviving corporation or entity of such consolidation or merger or (2)
shall transfer all or substantially all of its properties or assets to any Person, then, in each
case, Parent shall take such action as may be necessary so that such Person shall assume all of the
applicable obligations set forth in this Section 5.7.

          (f) Enforceability. The provisions of this Section 5.7 are (1) intended to be
for the benefit of, and shall be enforceable by, each Company Indemnified Party (it being expressly
agreed that the Company Indemnified Parties to whom this Section 5.7 applies shall be third
party beneficiaries of this Section 5.7) and (2) in addition to, and not in substitution
for, any other rights to indemnification or contribution that any such Person may have by contract
or otherwise. The obligations of Parent under this Section 5.7 shall not be terminated or
modified in such a manner as to

 

 

adversely affect the rights of any Company Indemnified Party under this Section 5.7
without the consent of such affected Company Indemnified Party.

          (g) Expenses. Parent shall pay (as incurred) all Expenses that a Company Indemnified
Party may incur in enforcing the indemnity, advancement and other obligations set forth in this
Section 5.7.

          (h) Burden of Proof. In connection with any determination as to whether the Company
Indemnified Parties are entitled to the benefits of this Section 5.7, the burden of proof
shall be on the Parent and the Surviving Corporation to establish that a Company Indemnified Person
is not so entitled.

 

 

Exhibit D

Form of Indemnity Agreement

     This Indemnity Agreement, dated as of ___, is made by and between SYMANTEC
CORPORATION, a Delaware corporation (the “Company”), and ___, a director,
officer or key employee of the Company or one of the Company’s subsidiaries (the
“Indemnitee”).

RECITALS

     A. The Company is aware that competent and experienced persons are increasingly reluctant to
serve as representatives of corporations unless they are protected by comprehensive liability
insurance or indemnification, due to increased exposure to litigation costs and risks resulting
from their service to such corporations, and due to the fact that the exposure frequently bears
no reasonable relationship to the compensation of such representatives;

     B. The statutes and judicial decisions regarding the duties of directors and officers are
often difficult to apply, ambiguous, or conflicting, and therefore fail to provide such directors
and officers with adequate, reliable knowledge of legal risks to which they are exposed or
information regarding the proper course of action to take;

     C. Plaintiffs often seek damages in such large amounts and the costs of litigation may be so
substantial (whether or not the case is meritorious), that the defense and/or settlement of such
litigation is often beyond the personal resources of representatives;

     D. The Company believes that it is unfair for its representatives and the representatives of
its subsidiaries to assume the risk of large judgments and other expenses that may be incurred in
cases in which the representative received no personal profit and in cases where the director or
officer was not culpable;

     E. The Company recognizes that the issues in controversy in litigation against a
representative of a corporation such as the Company or a subsidiary of the Company are often
related to the knowledge, motives and intent of such representatives, that he or she is usually
the only witness with knowledge of the essential facts and exculpating circumstances regarding
such matters and that the long period of time which usually elapses before the trial or other
disposition of such litigation often extends beyond the time that the representative can
reasonably recall such matters; and may extend beyond the normal time for retirement for such
director or officer with the result that he, after retirement or in the event of his death, his
spouse, heirs, executors or administrators, may be faced with limited ability and undue hardship
in maintaining an adequate defense, which may discourage such a representatives from serving in
that position;

     F. Based upon their experience as business managers, the Board of Directors of the Company
(the “Board”) has concluded that, to retain and attract talented and experienced
individuals to serve as representatives of the Company and its subsidiaries and to encourage such
individuals to take the business risks necessary for the success of the Company and its
subsidiaries, it is necessary for the Company to contractually indemnify its representatives and
the representatives of its subsidiaries, and to assume for itself maximum liability for expenses
and

 

 

damages in connection with claims against such representatives in connection with their service
to the Company and its subsidiaries, and has further concluded that the failure to provide such
contractual indemnification could result in great harm to the Company and its subsidiaries and
the Company’s shareholders;

     G. Section 145 of the General Corporation Law of Delaware, under which the Company is
organized (“Section 145”), empowers the Company to indemnify by agreement its officers,
directors, employees and agents, and persons who serve, at the request of the Company, as
directors, officers, employees or agents of other corporations or enterprises, and expressly
provides that the indemnification provided by Section 145 is not exclusive;

     H. The Company has determined that the liability insurance coverage available to the Company
and its subsidiaries for their representatives as of the date hereof is inadequate and/or
unreasonably expensive. The Company believes, therefore, that the interests of the Company’s
shareholders would best be served by the indemnification by the Company of the representatives of
the Company and its subsidiaries.

     I. The Company desires and has requested the Indemnitee to serve or continue to serve as a
representatives of the Company and/or the subsidiaries of the Company free from undue concern for
claims for damages arising out of or related to such services to the Company and/or the
subsidiaries of the Company; and

     J. The Indemnitee is willing to serve, or to continue to serve, the Company and/or the
subsidiaries of the Company, provided that he is furnished the indemnity provided for herein.

AGREEMENT

     NOW, THEREFORE, the parties hereto, intending to be legally bound, hereby agree as follows:

     1. Definitions.

          (a) Agent. For the purposes of this Agreement, “agent” of the Company means any
person who is or was a director, officer, employee, attorney or other agent of the Company or a
subsidiary of the Company; or is or was serving at the request of, for the convenience of, or to
represent the interest of the Company or a subsidiary of the Company as a director, officer,
employee or agent of another foreign or domestic corporation, partnership, joint venture, trust
or other enterprise; or was a director, officer, employee or agent of a foreign or domestic
corporation which was a predecessor corporation of the Company or a subsidiary of the Company, or
was a director, officer, employee or agent of another enterprise at the request of, for the
convenience of, or to represent the interests of such predecessor corporation.

          (b) Expenses. For purposes of this Agreement, “expenses” includes all direct and
indirect costs of any type or nature whatsoever (including, without limitation, all attorneys’
fees and related disbursements, and other out-of-pocket costs) actually and reasonably incurred
by the Indemnitee in connection with either the investigation, defense or appeal of a proceeding
or establishing or enforcing a right to indemnification under this Agreement, Section 145 or
otherwise; provided, however, that expenses shall not include any judgments, fines, ERISA excise
taxes or penalties or amounts paid in settlement of a proceeding.

 

 

          (c) Proceeding. For the purposes of this Agreement, “proceeding” means any
threatened, pending, or completed action, suit or other proceeding, whether civil, criminal,
administrative, investigative or any other type whatsoever.

          (d) Subsidiary. For purposes of this Agreement, “subsidiary” means any corporation
of which more than 50% of the outstanding voting securities is owned directly or indirectly by
the Company, by the Company and one or more other subsidiaries, or by one or more other
subsidiaries.

     2. Agreement to Serve. The Indemnitee agrees to serve and/or continue to serve as
an agent of the Company, at its will (or under separate agreement, if such agreement exists), in
the capacity Indemnitee currently serves as an agent of the Company, so long as he is duly
appointed or elected and qualified in accordance with the applicable provisions of the Bylaws of
the Company or any subsidiary of the Company or until such time as he tenders his resignation in
writing, provided, however, that nothing contained in this Agreement is intended to create any
right to continued employment by Indemnitee.

     3. Mandatory Indemnification. The Company shall indemnify the Indemnitee:

          (a) Third Party Actions. If the Indemnitee is a person who was or is a party or is
threatened to be made a party to any proceeding (other than an action by or in the right of the
Company) by reason of the fact that he is or was an agent of the Company, or by reason of
anything done or not done by him in any such capacity, against any and all expenses and
liabilities of any type whatsoever (including, but not limited to, judgments, fines, ERISA excise
taxes or penalties, and amounts paid in settlement) actually and reasonably incurred by him in
connection with the investigation, defense, settlement or appeal of such proceeding if he acted
in good faith and in a manner he reasonably believed to be in or not opposed to the best
interests of the Company, and, with respect to any criminal action or proceeding, had no
reasonable cause to believe his conduct was unlawful; and

          (b) Derivative Actions. If the Indemnitee is a person who was or is a party or is
threatened to be made a party to any proceeding by or in the right of the Company to procure a
judgment in its favor by reason of the fact that he is or was an agent of the Company, or by
reason of anything done or not done by him in any such capacity, against any amounts paid in
settlement of any such proceeding, to the maximum extent permitted by law, and all expenses
actually and reasonably incurred by him in connection with the investigation, defense,
settlement, or appeal of such proceeding if he acted in good faith and in a manner he rea sonably
believed to be in or not opposed to the best interests of the Company; except that no
indemnification under this subsection shall be made in respect of any claim, issue or matter as
to which such person shall have been finally adjudged to be liable to the Company, unless and
only to the extent that the Court of Chancery or the court in which such proceeding was brought
shall determine upon application that, despite the adjudication of liability but in view of all
the circumstances of the case, such person is fairly and reasonably entitled to indemnity for
such amounts which the Court of Chancery or such other court shall deem proper; and

          (c) Actions Where Indemnitee is Deceased. If the Indemnitee is a person who was or
is a party or is threatened to be made a party to any proceeding by reason of the fact that he is
or was an agent of the Company, or by reason of anything done or not done by him in any such

 

 

capacity, against any and all expenses and liabilities of any type whatsoever (including, but not
limited to, judgments, fines, ERISA excise taxes or penalties, and amounts paid in settlement)
actually and reasonably incurred by or for him in connection with the investigation, defense,
settlement or appeal of such proceeding if he acted in good faith and in a manner he reasonably
believed to be in or not opposed to the best interests of the Company, and, prior to, during the
pendency or after completion of such proceeding Indemnitee is deceased, except that in a
proceeding by or in the right of the Company no indemnification shall be due under the provisions
of this subsection in respect of any claim, issue or matter as to which such person shall have
been finally adjudged to be liable to the Company, unless and only to the extent that the Court
of Chancery or the court in which such proceeding was brought shall determine upon application
that, despite the adjudication of liability but in view of all the circumstances of the case,
such person is fairly and reasonably entitled to indemnity for such amounts which the Court of
Chancery or such other court shall deem proper; and

     4. Partial Indemnification. If the Indemnitee is entitled under any provision of
this Agreement to indemnification by the Company for some or a portion of any expenses or
liabilities of any type whatsoever (including, but not limited to, judgments, fines, ERISA excise
taxes or penalties, and amounts paid in settlement) incurred by him in the investigation,
defense, settlement or appeal of a proceeding but not entitled, however, to indemnification for
all of the total amount thereof, the Company shall nevertheless indemnify the Indemnitee for such
total amount except as to the portion thereof to which the Indemnitee is not entitled.

     5. Mandatory Advancement of Expenses. Subject to Section 8 below, the Company shall
advance all expenses incurred by the Indemnitee in connection with the investigation, defense,
settlement or appeal of any proceeding to which the Indemnitee is a party or is threatened to be
made a party by reason of the fact that the Indemnitee is or was an agent of the Company or by
reason of anything done or not done by him in any such capacity. Indemnitee hereby undertakes to
repay such amounts advanced only if, and to the extent that, it shall ultimately be determined
that the Indemnitee is not entitled to be indemnified by the Company as authorized hereby. The
advances to be made hereunder shall be paid by the Company to the Indemnitee within twenty (20)
days following delivery of a written request therefor by the Indemnitee to the Company.

     6. Notice and Other Indemnification Procedures.

          (a) Promptly after receipt by the Indemnitee of notice of the commencement of or the threat
of commencement of any proceeding, the Indemnitee shall, if the Indemnitee believes that
indemnification with respect thereto may be sought from the Company under this Agreement, notify
the Company of the commencement or threat of commencement thereof.

          (b) In the event the Company shall be obligated to advance the expenses for any proceeding
against the Indemnitee, the Company, if appropriate, shall be entitled to assume the defense of
such proceeding, with counsel approved by the Indemnitee, upon the delivery to the Indemnitee of
written notice of its election so to do. After delivery of such notice, approval of such counsel
by the Indemnitee and the retention of such counsel by the Company, the Company will not be
liable to the Indemnitee under this Agreement for any fees of counsel subsequently incurred by
the Indemnitee with respect to the same proceeding, provided that (i) the Indemnitee shall have
the right to employ his counsel in any such proceeding at the Indemnitee’s expense; and (ii) if
(A) the employment of counsel by the Indemnitee has been previously authorized by the Company,
(B) the Indemnitee shall have notified the Board of Directors in writing that he has reasonably
concluded

 

 

that there may be a conflict of interest between the Company and the Indemnitee in the conduct of
any such defense or (C) the Company shall not, in fact, have employed counsel to assume the
defense of such proceeding, the fees and expenses of Indemnitee’s counsel shall be at the expense
of the Company.

     7. Determination of Right to Indemnification.

          (a) To the extent the Indemnitee has been successful on the merits or otherwise in defense
of any proceeding referred to in Section 3(a), 3(b) or 3(c) of this Agreement or in the defense
of any claim, issue or matter described therein, the Company shall indemnify the Indemnitee
against expenses actually and reasonably incurred by him in connection therewith.

          (b) In the event that Section 7(a) is inapplicable, the Company shall also indemnify the
Indemnitee if he has met the applicable standard of conduct required to entitle the Indemnitee to
such indemnification.

          (c) The Indemnitee shall be entitled to select the forum in which determination of whether
or not Indemnitee has met the applicable standard of conduct will be made from among the
following:

               (1) A quorum of the Board consisting of directors who are not parties to the proceeding for
which indemnification is being sought;

               (2) The shareholders of the Company;

               (3) Legal counsel selected by the Indemnitee, and reasonably approved by the Board, which
counsel shall make such determination in a written opinion.

               (4) A panel of three arbitrators, one of whom is selected by the Company, another of whom is
selected by the Indemnitee and the last of whom is selected by the first two arbitrators so
selected.

          (d) As soon as practicable, and in no event later than 30 days after written notice of the
Indemnitee’s choice of forum pursuant to Section 7(c) above, the Company and Indemnitee shall
each submit to the selected forum such information as they believe is appropriate for the forum
to consider.

          (e) Notwithstanding a determination by any forum listed in Section 7(c) hereof that
Indemnitee is not entitled to indemnification with respect to a specific proceeding, the
Indemnitee shall have the right to apply to the Court of Chancery of Delaware, the court in which
that proceeding is or was pending or any other court of competent jurisdiction, for the purpose
of enforcing the Indemnitee’s right to indemnification pursuant to the Agreement.

          (f) The Company shall indemnify the Indemnitee against all expenses incurred by the
Indemnitee in connection with any hearing or proceeding under this Section 7 involving the
Indemnitee and against all expenses incurred by the Indemnitee in connection with any other
proceeding between the Company and the Indemnitee involving the interpretation or enforcement of
the rights of the Indemnitee under this Agreement unless a court of competent

 

 

jurisdiction finds that each of the material claims and/or defenses of the Indemnitee in any such
proceeding was frivolous or not made in good faith.

     8. Exceptions. Any other provision herein to the contrary notwithstanding, the
Company shall not be obligated pursuant to the terms of this Agreement:

          (a) Claims Initiated by Indemnitee. To indemnify or advance expenses to the
Indemnitee with respect to proceedings or claims initiated or brought voluntarily by the
Indemnitee and not by way of defense, except with respect to proceedings brought to establish or
enforce a right to indemnification under this Agreement or any other statute or law or otherwise
as required under Section 145, but such indemnification or advancement of expenses may be
provided by the Company in specific cases if the Board of Directors finds it to be appropriate;
or

          (b) Lack of Good Faith. To indemnify the Indemnitee for any expenses incurred by
the Indemnitee with respect to any proceeding instituted by the Indemnitee to enforce or
interpret this Agreement, if a court of competent jurisdiction determines that each of the
material assertions made by the Indemnitee in such proceeding was not made in good faith or was
frivolous; or

          (c) Unauthorized Settlements. To indemnify the Indemnitee under this Agreement for
any amounts paid in settlement of a proceeding unless the Company consents to such settlement; or

          (d) Claims by the Company for Willful Misconduct. To advance expenses to the
Indemnitee under this Agreement for any expenses incurred by the Indemnitee with respect to any
proceeding or claim brought by the Company against Indemnitee for willful misconduct, unless a
court of competent jurisdiction determines that each of such claims was not made in good faith or
was frivolous.

          (e) l6(b) Actions. To indemnify the Indemnitee on account of any suit in which
judgment is rendered against Indemnitee for an accounting of profits made from the purchase or
sale by Indemnitee of securities of the Company pursuant to the provisions of Section l6(b) of
the Securities and Exchange Act of l934 and amendments thereto or similar provisions of any
federal state or local statutory law; or

          (f) Willful Misconduct. To indemnify the Indemnitee on account of Indemnitee’s
conduct which is finally adjudged to have been knowingly fraudulent or deliberately dishonest, or
to constitute willful misconduct; or

          (g) Unlawful Indemnification. To indemnify the Indemnitee if a final decision by a
court having jurisdiction in the matter shall determine that such indemnification is not lawful.

     9. Non-exclusivity. The provisions for indemnification and advancement of expenses
set forth in this Agreement shall not be deemed exclusive of any other rights which the
Indemnitee may have under any provision of law, the Company’s Certificate of Incorporation or
Bylaws, the vote of the Company’s shareholders or disinterested directors, other agreements, or
otherwise, both as to action in his official capacity and to action in another capacity while
occupying his position as an agent of the Company, and the Indemnitee’s rights hereunder shall

 

 

continue after the Indemnitee has ceased acting as an agent of the Company and shall inure to the
benefit of the heirs, executors and administrators of the Indemnitee.

     10. Interpretation of Agreement. It is understood that the parties hereto intend
this Agreement to be interpreted and enforced so as to provide indemnification to the Indemnitee
to the fullest extent now or hereafter permitted by law.

     11. Severability. If any provision or provisions of this Agreement shall be held to
be invalid, illegal or unenforceable for any reason whatsoever, (i) the validity, legality and
enforceability of the remaining provisions of the Agreement (including, without limitation, all
portions of any paragraphs of this Agreement containing any such provision held to be invalid,
illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) shall not in
any way be affected or impaired thereby, and (ii) to the fullest extent possible, the provisions
of this Agreement (including, without limitation, all portions of any paragraphs of this
Agreement containing any such provision held to be invalid, illegal or unenforceable, that are
not themselves invalid, illegal or unenforceable) shall be construed so as to give effect to the
intent manifested by the provision held invalid, illegal or unenforceable and to give effect to
Section 10 hereof.

     12. Modification and Waiver. No supplement, modification or amendment of this
Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver
of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any
other provision hereof (whether or not similar) nor shall such waiver constitute a continuing
waiver.

     13. Successors and Assigns. The terms of this Agreement shall bind, and shall inure
to the benefit of, the successors and assigns of the parties hereto.

     14. Notice. All notices, requests, demands and other communications under this
Agreement shall be in writing and shall be deemed duly given (i) if delivered by hand and
receipted for by the party addressee or (ii) if mailed by certified or registered mail with
postage prepaid, on the third business day after the mailing date. Addresses for notice to
either party are as shown on the signature page of this Agreement, or as subsequently modified by
written notice.

     15. Governing Law. This Agreement shall be governed exclusively by and construed
according to the laws of the State of Delaware, as applied to contracts between Delaware
residents entered into and to be performed entirely with Delaware.

     16. Consent to Jurisdiction. The Company and the Indemnitee each hereby irrevocably
consent to the jurisdiction of the courts of the State of Delaware for all purposes in connection
with any action or proceeding which arises out of or relates to this Agreement.

 

 

     The parties hereto have entered into this Indemnity Agreement effective as of the date first
above written.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	SYMANTEC CORPORATION	 	 
	 	 	Address:	 	20330 Stevens Creek Blvd.	 	 
	 	 	 	 	Cupertino, California 95014	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	By	 	 	 	 
	

	 	 	 	 	 	
	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	Its	 	 	 	 
	

	 	 	 	 	 	
	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	INDEMNITEE:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	
	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Address:	 	
	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	
	 	 

 

 

Exhibit E

 Symantec Employee Agreement

EMPLOYEE AGREEMENT

This agreement is entered into as of the                      day of                     , 200___by and between
                                         (hereinafter “Employee”) and Symantec Corporation, a Delaware
Corporation, having its principal place of business at 20330 Stevens Creek Blvd., Cupertino,
California 95014 (hereinafter “Symantec”).

In consideration of his/her employment by Symantec and of the salary or wages and other benefits
received by him/her during such employment, he/she agrees that the following terms and conditions
shall govern his/her employment relationship with Symantec in regard to inventions and discoveries,
works of authorship, and proprietary information, confidential information and trade secrets:

1. INVENTIONS AND DISCOVERIES

A. Employee agrees that all inventions and discoveries, whether patentable or unpatentable, which
are conceived or made by him/her during his/her employment, either solely or jointly with others,
and which relate in any way to the products or business of Symantec, shall belong to Symantec.
Employee agrees that he/she has been notified and understands that the provisions of this paragraph
do not apply to any Invention that qualifies fully under the provisions of Section 2870 of the
California Labor Code, which states as follows:

     ANY PROVISION IN AN EMPLOYMENT AGREEMENT WHICH PROVIDES THAT AN EMPLOYEE SHALL ASSIGN OR OFFER
TO ASSIGN ANY OF HIS OR HER RIGHTS IN AN INVENTION TO HIS OR HER EMPLOYER SHALL NOT APPLY TO AN
INVENTION THAT THE EMPLOYEE DEVELOPED ENTIRELY ON HIS OR HER OWN TIME WITHOUT USING THE EMPLOYER’S
EQUIPMENT, SUPPLIES, FACILITIES, OR TRADE SECRET INFORMATION EXCEPT FOR THOSE INVENTIONS THAT
EITHER: (1) RELATE AT THE TIME OF CONCEPTION OR REDUCTION TO PRACTICE OF THE INVENTION TO THE
EMPLOYER’S BUSINESS, OR ACTUAL OR DEMONSTRABLY ANTICIPATED RESEARCH OR DEVELOPMENT OF THE
EMPLOYMENT RESEARCH OR DEVELOPMENT OF THE EMPLOYER, OR (2) RESULT FROM ANY WORK PERFORMED BY THE
EMPLOYEE FOR THE EMPLOYER. TO THE EXTENT A PROVISION IN AN EMPLOYMENT PURPORTS TO REQUIRE AN
EMPLOYEE TO ASSIGN AN INVENTION OTHERWISE EXCLUDED FROM BEING REQUIRED TO BE ASSIGNED UNDER
CALIFORNIA LABOR CODE SECTION 1870 (A), THE PROVISION IS AGAINST THE PUBLIC POLICY OF THIS STATE
AND IS UNENFORCEABLE.

B. Employee agrees that he/she will disclose to Symantec in writing any inventions and discoveries
covered by this Agreement. Employee further agrees that, without further remuneration, he/she will
do any and all of the following acts at the request and expense of Symantec:

     (1) execute any assignments to Symantec or its nominee of the entire right, title, and
interest in and to any such inventions and discoveries;

 

 

     (2) execute any other proper instruments or documents necessary or desirable in applying for
and obtaining patents on such inventions and discoveries in the United States and foreign
countries; and

     (3) to cooperate in the prosecution or defense of any claims, lawsuits, or other proceedings
involving such invention and discoveries.

2. WORKS OF AUTHORSHIP

A. Employee agrees that any works of authorship such as writings, computer programs, and the like
which are authored or created by him/her during his/her employment, either solely or jointly with
others, and which relate in any way to the business of Symantec shall belong to Symantec whether
copyrightable or not.

B. Employee further agrees that without further remuneration, he/she will do any and all of the
following acts at the request and expense of Symantec:

     (1) execute any assignments to Symantec or its nominee of the entire right, title, and
interest in and to any such works of authorship;

     (2) execute any other proper instruments or documents necessary or desirable in applying for
and obtaining registration of copyrights on such works of authorship in the United States and
foreign countries, including renewal papers when appropriate; and

     (3) cooperate in the prosecution of defense of any claims, lawsuits, or other proceedings
involving such works of authorship.

C) Employee hereby waives his/her right to enforce any moral or author’s rights which employee may
have in such works of authorship.

3. PROPRIETARY INFORMATION AND TRADE SECRETS

A. Employee agrees that, in performing work for Symantec, he/she will not knowingly use any
patented inventions, trade secrets, source code, object code, marketing plans, contact lists,
copyrights images, employee phone lists or other confidential information or proprietary
information obtained from third parties, including any prior employer or any other organization or
individual. Use of any such third party material without the consent of the owner may cause
Employee to be subject to immediate termination as well as civil and criminal sanctions.

B. Employee agrees that he/she will retain in confidence any and all proprietary information,
confidential information and trade secrets belonging to Symantec, or belonging to a third party and
in the possession of Symantec, which may come into his/her possession during his/her employment.
Employee further agrees that he/she will refrain from doing any of the following acts with respect
to such proprietary information, confidential information and trade secrets, both during his/her
employment and thereafter, without first obtaining the consent in writing of an officer of
Symantec:

     (1) communicate such proprietary information, confidential information or trade secret to any
person outside Symantec or to any other firm, association, or corporation; and

 

 

     (2) use such proprietary information, confidential information or trade secret for the private
benefit of himself/herself or for the benefit of any person outside Symantec or any other firm,
association, or corporation.

C. Employee understands and agrees that the proprietary information and trade secrets of Symantec
shall include, but shall not be limited to, the following:

     (1) inventions, discoveries and computer programs not yet patented or published;

     (2) unpublished technical specifications, data, source codes, object codes, drawings and
descriptions on the proprietary hardware, software, and combined hardware/software products and
processes of Symantec;

     (3) current engineering, research development, and design projects and research and
development data;

     (4) manufacturing processes and methods and apparatus and equipment not generally available or
known to the public;

     (5) business information such as product costs, vendor and customer lists, lists of approved
components and sources, price lists, production schedules, business plans and sales and profit and
loss information not yet announced to or disclosed to the public;

     (6) any other information not generally available to the public.

	D.  	Employee further agrees that all source code printouts, computer programs on storage media,
records, files, memoranda, reports, price lists, customer lists, plans, sketches, documents,
equipment, prototypes, and the like, which relate to the business of Symantec and which he/she
uses, prepares, or comes into contact with during his/her employment shall remain the sole
property of Symantec and shall be returned to Symantec on termination of his/her employment.

4. BUSINESS CONDUCT

	   	Attached to this Agreement as Exhibit A is a copy of Symantec’s Business Conduct
Guidelines. By signing this Agreement you agree that you have read the Business Conduct
Guidelines, and that your compliance with the terms of the Business Conduct Guidelines is a
condition of your employment by Symantec.

5. MISCELLANEOUS

A. Employee understands that this Agreement may not be changed or terminated orally, and no change,
termination or waiver of any of the provisions hereof will be binding unless in writing and signed
by an officer of Symantec.

B. Employee further understands that any agreement previously executed by him/her during his/her
employment with Symantec shall continue in force and effect as to any subject matter to which it
applies, but in all other respects is superseded by this Agreement.

 

 

	C.  	This agreement is not a contract for or guarantee of employment. Employee acknowledges that
employee is an “at will” employee of Symantec and his/her employment may be terminated by
Symantec at any time, with or without cause.

     If you have any questions or concerns or are otherwise in doubt about the meaning of this
agreement, either generally or as it applies to a specific situation, please contact your manager
or the legal department for an explanation.

	 	 	 
	

for Symantec Corporation

	 	

Employee
	 
	 	 
	

Title

	 	

Date
	 
	 	 
	

Date
	 	 

 

 

EXHIBIT A

BUSINESS CONDUCT GUIDELINES

1.0 POLICY OBJECTIVE AND IMPLEMENTATION

     The objective of this policy is to ensure that Symantec standards of ethical conduct
have been communicated to all employees of Symantec and that they are understood. It is
vital that each Symantec employee conducts her/himself in a manner that exemplifies the
guiding principles of fairness, reason and honesty.

     The Human Resources organization is responsible for future distribution and
communication of this policy throughout Symantec. Ultimately, each Symantec employee has the
responsibility of implementing this policy with the continuous support from management.

     Symantec recognizes that extraordinary situations may occur which are beyond the scope
of this Policy Statement. These situations may require action in conflict with the Policy
outlined below in order to preserve or protect the life of an employee or family member, or
in order to preserve or protect a significant asset of the Corporation.

     In the event of any such occurrence, the action contemplated will first be approved by
the Senior Vice President of Human Resources of the Corporation or, in her/his absence, by
the Chief Financial Officer of the Corporation.

2.0 LAWFUL STANDARD OF CONDUCT

     It is a policy of Symantec to ensure that its employees are lawfully conducting
themselves in such a manner that is fair, reasonable and honest in relation to Symantec’s
business.

     Symantec employees will act in compliance with all laws and regulations that may be
applicable to the Corporation’s business. Although laws and customs vary from country to
country and standards of ethics may vary in different business environments, the guiding
principles previously mentioned serve as time-tested standards.

     For example, Symantec expects that all employees will comply, directly or indirectly,
with any local laws or regulations as well as the high standards of honesty, fairness and
reason that are applicable to Symantec activities throughout the world.

3.0 GENERAL BUSINESS CONDUCT

     It is also a policy of Symantec to ensure that its employees are conducting themselves
in such a manner that is fair, reasonable and honest in relation to general business
conduct.

     Symantec employees may encounter situations in the course of their general business
practice that call upon them to make an ethical judgment. With the guiding principles in
mind, Symantec supports actions of employees when they are within the following boundaries:

	 	(1)  	Avoid actions which can be perceived as improper or unfair in
dealing with customers, suppliers and any other person or entity including but
not limited to discrimination, unfair treatment of employees/customers and
predatory employment practices. This responsibility is in addition to adhering
to the specifics of this policy.
	 
	 	(2)  	Extending or receiving common courtesies such as business meals,
usually associated with accepted business practice, in dealings with a
customer, supplier or other non-governmental person or entity is acceptable.
However, in any such

 

 

	 	   	dealings, employees of Symantec should not request, accept, offer to give or give
anything of significant value, the express or implied purpose or result of which
is to influence the bona fide business relationships between Symantec and such
person or entity.
	 
	 	(3)  	Extending or receiving occasional gifts having a maximum retail
value of $250 as a gesture of goodwill is acceptable. Gifts in the form of cash
payments are not allowed, regardless of amount. Gifts in the form of tickets to
sporting events and other forms of entertainment are not subject to the $250
limit. All entertainment with a value in excess of $250 requires notification
to the Management Committee member in charge of the relevant operating unit.

4.0 CONFLICTS OF INTEREST

     A situation in which the personal interests of the employee and the interests of the
company are in opposition will not be tolerated. This situation is both detrimental to the
employee and the Corporation.

     A conflict of interest exists if the perceived or actual interests of Symantec and the
employee are at odds. Please note that appearances that support the perception that a
conflict exists, whether or not such conflict actually exists, will be treated with the same
level of seriousness.

     Following are common instances in which there are conflicts of interest:

	 	(1)  	Symantec employees simultaneously working for actual or
prospective competitors, suppliers and/or customers.
	 
	 	(2)  	Pursuing an outside activity which impairs work efficiency,
judgment and/or impartiality.
	 
	 	(3)  	The possession of a financial interest in a competing
corporation, supplier and/or customer. However, the possession of insignificant
financial holdings of a publicly traded company is acceptable. A second method
to gauge the financial holdings is that the employee must be able to sell the
holding upon notification, at market price, without concern for any financial
loss.
	 
	 	(4)  	Investment or speculation in equipment, real estate, and/or
materials bought or sold by Symantec or which is under consideration for
purchase.
	 
	 	(5)  	Intentional misrepresentation via either commission or omission;
both internally and externally. For example, misconstruing or omitting facts to
gain customer, vendor, or employee acceptance of a deal or policy where it would
not otherwise be given.
	 
	 	(6)  	Revealing confidential information to outsiders or misusing
confidential information. Unauthorized divulgence or use of information is a
violation of this policy whether or not for personal gain and whether or not
harm to the Corporation is intended.

 

 

	 	(7)  	The employment of relatives*: a) in the same department, unless
they are reporting to different first- line managers. b) Where one is managing
the other or in a position to influence the career of the other if they are less
than three reporting levels apart. No employee will be involved in a relative’s
performance review, salary determination or career development planning. c)
Where one employee is in a position considered “sensitive” or “confidential”,
such as handling salary or performance information (i.e. Human Resources, IT or
Payroll).
	 
	 	  	*For the purpose of this policy, a relative is defined as a spouse, domestic
partner, and child or sibling by blood or marriage.
	 
	 	(8)  	Borrowing money, goods or services from the Corporation or
lending to employees, customers or suppliers.
	 
	 	(9)  	Improperly using or disclosing to Symantec any proprietary
information or trade secrets of any former or concurrent employer or other
person or entity with whom obligations of confidentiality exist.
	 
	 	(10)  	Unlawfully discussing prices, costs, customers, sales or markets
with competing companies or their employees.

     If you think an activity you’re about to pursue might be considered a conflict of
interest, you must notify the Corporation and obtain prior approval by submitting a brief
report detailing your proposed actions to the Senior Vice President of Human Resources.

     If you are, or have already, participated in something that might be considered a
conflict of interest, you must still submit a report as outlined in the preceding paragraph.

5.0 PERSONAL USE OF SYMANTEC PROPERTY

     Personal gain is action taken for private benefit. The use of Symantec facilities and
equipment for personal gain is strictly prohibited.

     Office supplies, copied software, engineering material, office machine and/or computers
are not to be used for personal gain. Personal gain shall be considered the use of
facilities for significant personal gain and/or personal profit.

     Use of Symantec information at home will only be on company-owned computers as this
information is the exclusive property of the Corporation.

     It is a violation of Symantec policy to operate a private business from company
grounds, on company time or with company materials. However, the insignificant use of
facilities for non-profit functions is acceptable.

6.0 ACCURACY AND COMPLETENESS OF THE CORPORATION’S BOOKS AND RECORDS

     Symantec employees will exercise fair, reasonable and honest actions in dealing with
the Corporation’s books and records. Records include but are not limited to
financial-related information, IT account information and IT log information.

     The following guidelines will be adhered to:

	 	(1)  	False, intentionally improper or misleading entries will not be
made in the books and records of the Corporation.

 

 

	 	(2)  	Complete and accurate information is to be given in response to
inquiries from the Corporation’s auditors, both internal and external.
	 
	 	(3)  	Undisclosed or unrecorded funds or assets of the Corporation will
not be established or maintained for any purpose except when obsolete or
surplus.
	 
	 	(4)  	All payments made by or on behalf of the Corporation for any
purpose will be fully defined and are to be made only for the purpose described
in the documents and records of the Corporation supporting the payment.

     All documents reflecting an element of a transaction with a customer (such as “side
letters” including those made by email) must be submitted to the Revenue department together
with the related customer order.

7.0 RELATIONS WITH GOVERNMENT AUTHORITIES

     In addition to the other Standards of Conduct set forth in this Policy Statement, no
employee of Symantec will directly or indirectly offer to provide any gift, gratuity or
entertainment to any employee or representative of any government authority, regardless of
amount, in violation of Standards of Conduct put forth by such authority.

     Employees will illustrate fair, reasonable and honest conduct in dealing with foreign
governments. Symantec employees will not directly or indirectly offer or provide any gift or
gratuity to any employee or representative of any foreign government. Notwithstanding the
foregoing, Symantec recognizes that in certain foreign countries, some minor government
officials will delay or fail to perform their normal functions or services unless payments
are made to them. In those situations where it is necessary to expedite a routine
government action which the Corporation is otherwise entitled to have performed, payment may
be made provided they:

	 	(1)  	Are not made to policy-making government personnel.
	 
	 	(2)  	Are consistent with local custom and standards.
	 
	 	(3)  	Receive prior approval, in writing, from the Chief Financial
Officer.

8.0 RESPONSIBILITIES AND REPORTING

     Symantec supports this Policy and also supports employees in its implementation. Any
employee having information, knowledge or suspicion of any actual or contemplated
transaction which is or appears to be in violation of this Policy Statement, should promptly
report the matter to the Senior Vice President of Human Resources. In the event any such
transaction involves an Officer of the Corporation, the matter should be reported directly
to the Board of Directors.

     Employees may periodically be required to certify compliance with this Policy
Statement.

     Failure to comply with this Policy Statement will result in disciplinary action that
may include reprimand, suspension, demotion or dismissal. Disciplinary measures will also
apply to

 

 

senior executives who condone such illegal or unethical conduct by those reporting to
them and do not take immediate measures to correct the same.

 

 

SYMANTEC

BUSINESS CONDUCT GUIDELINES

I have read and understand Symantec’s Business Conduct Guidelines. I will abide by the statement
in all respects and realize that Symantec expects its employees to conduct themselves in a manner
that is fair, reasonable and honest in relation to the Corporation’s business.

        .

	 	 	 
	

Employee Signature

	 	

Date
	 
	 	 
	

Print Name
	 	 

 

 

APPENDIX I

SPECIAL TAX PAYMENT

GROSS UP PAYMENT

     The following provisions are hereby incorporated into, and are hereby made a part of, that
certain Employment Agreement by and between Symantec Corporation (the “Company”) and [                    ] (“Executive”) dated December 15, 2004 (the “Employment Agreement”),
and such provisions shall be effective immediately. All capitalized terms in this Appendix, to the
extent not otherwise defined herein, shall have the meanings assigned to them in the Employment
Agreement.

     1. Special Tax Gross-Up. In the event that (i) any payment made by Veritas to
Executive, whether pursuant to Executive’s Change of Control Agreement dated March 15, 2004 or
otherwise, prior to the Closing Date or any payment to Executive made by Symantec, whether
pursuant to the Employment Agreement or otherwise, following the Closing Date (each a “Payment”) is
deemed, in the opinion of the Independent Auditors or by the Internal Revenue Service, to
constitute a parachute payment under Section 280(G) of the Code as a result of the Acquisition and
(ii) it is determined that the aggregate Present Value (measured as of the Closing Date) of the
Parachute Payment attributable to such Payment(s) exceeds one hundred ten percent (110%) of the
Permissible Parachute Amount, then Executive shall be entitled to receive from the Company a
special tax payment (the “Gross-Up Payment”) in a dollar amount determined pursuant to the
following formula:

	   	X = Y ÷ [1 - (A + B + C)], where
	 
	   	X is the total dollar payment of the Gross-up Payment.
	 
	   	Y is the total excise tax, together with all applicable interest and
penalties (collectively, the “Excise Tax”), imposed on the Executive
pursuant to Code Section 4999 (or any successor provision) with
respect to the excess parachute payment attributable to the
Payment(s).
	 
	   	A is the Excise Tax rate in effect under Code Section 4999 for such
excess parachute payment,
	 
	   	B is the highest combined marginal federal income and applicable
state income tax rate in effect for the Executive for the calendar
year in which the Gross-Up Payment is made, determined after taking
into account (i) the deductibility of state income taxes against
federal income taxes to the extent actually allowable for that
calendar year and (ii) any increase in effective tax rate due to the
loss of itemized deductions by reason of applicable phase-out
limitations, and
	 
	   	C is the applicable Hospital Insurance (Medicare) Tax Rate in effect
for the Executive for the calendar year in which the Gross-Up
Payment is made.

     2. Benefit Limit.

     A. Should it be determined that the aggregate Present Value (measured as of the Closing Date)
of the Parachute Payment attributable to the Payment(s) does not exceed one hundred ten percent
(110%) of the Permissible Parachute Amount, then no Gross-Up Payment shall be made to Executive
under Paragraph 1 of this Appendix. Instead, the limitations set forth in this Paragraph 2 shall
apply. Accordingly, the amount of the Payments otherwise due the Executive shall be reduced to the

 

 

extent necessary to assure that the aggregate Present Value of the Payment(s) does not exceed
the greater of the following dollar amounts (the “Benefit Limit”)

          a. the Permissible Parachute Amount, or

          b. the greatest after-tax amount payable to the Executive after taking into account any excise
tax imposed under Internal Revenue Code Section 4999 on the Payments.

     To effect such Benefit Limit, the following reductions shall be made to the Payments to which
the Executive is otherwise entitled, to the extent necessary to assure that such Benefit Limit is
not exceeded: first, any cash payments to which the Executive would otherwise be entitled shall be
reduced, then, any non-cash payments to which Executive would otherwise be entitled shall be
reduced in a manner determined by the Executive and acceptable to the Company.

     3. Determination Procedures. All determinations required to be made under this
Appendix shall be made by the Independent Auditors in accordance with the following procedures:

     (a) In determining the total dollar amount of the Parachute Payment attributable to the
Payments, the Independent Auditors shall make a reasonable determination of the value to be
assigned to the restrictive covenants which will be in effect for the Executive pursuant to the
Employment Agreement, and the amount of his potential Parachute Payments shall reduced by the value
of those restrictive covenants.

     (b) Within ten (10) business days after each receipt of written notice from the Company or the
Executive that a Parachute Payment has or is to be made, then the Independent Auditors shall
provide both the Executive and the Company with a written determination of the Parachute Payment
attributable to that Payment, together with detailed supporting calculations with respect to the
Gross-Up Payment to which the Executive is entitled hereunder by reason of those various Parachute
Payments. The Company shall pay the resulting Gross-Up Payment to the Executive within three (3)
business days after receipt of such determination or (if later) contemporaneously with the Payment
triggering such Gross-Up Payment.

     (c) In the event the Treasury Regulations under Code Section 280G (or applicable judicial
decisions) specifically address the status of any Payment or the method of valuation therefor, the
characterization afforded to such payment by the Regulations (or such decisions) shall, together
with the applicable valuation methodology, be controlling. All other determinations by the
Independent Auditors shall be made on the basis of “substantial authority” (within the meaning of
Section 6662 of the Code).

     (d) The Company and the Executive shall each provide the Independent Auditors with access to
and copies of any books, records and documents in their possession which may be reasonably
requested by the Independent Auditors and shall otherwise cooperate with the Independent Auditors
in connection with the preparation and issuance of the determinations contemplated by this
Appendix.

     (e) All fees and expenses of the Independent Auditors and the appraisers shall be borne solely
by the Company, and to the extent those fees or expenses are treated as a Parachute Payment, they
shall be taken into account in the calculation of the Gross-Up Payment to which the Executive is
entitled under this Appendix.

     4. Additional Claims. The Executive shall provide written notification to the Company
of any claim made by the Internal Revenue Service which would, if successful, require the payment
by the Company of an additional Gross-Up Payment. Such notification shall be given as soon as
practicable after the Executive is informed in writing of such claim and shall apprise the Company
of the

 

 

nature of such claim and the date on which such claim is requested to be paid. The Executive
shall not pay such claim prior to the expiration of the thirty (30)-day period following the date
on which such notice is given to the Company (or such shorter period ending on the date that any
payment of taxes, interest and/or penalties with respect to such claim is due). Prior to the
expiration of such thirty (30)-day or shorter period, the Company shall ether (i) make the
additional Gross-Up Payment to the Executive attributable to the Internal Revenue Service claim or
(ii) provide written notice to the Executive that the Company shall contest the claim on the
Executive’s behalf. In the event, the Company provides the Executive with such written notice,
Executive shall:

     (A) provide the Company with any information reasonably requested by the Company relating to
such claim;

     (B) take such action in connection with contesting such claim as the Company may reasonably
request in writing from time to time, including (without limitation) accepting legal representation
with respect to such claim by an attorney reasonably selected by the Company and reasonably
satisfactory to the Executive, with the fees and expenses of such attorney to be the sole
responsibility of the Company without any tax implications to the Executive in accordance with the
same tax indemnity/gross-up arrangement as in effect under subparagraph (D) below;

     (C) cooperate with the Company in good faith in order to effectively contest such claim; and

     (D) permit the Company to participate in any proceedings relating to such claim; provided,
however, that the Company shall bear and pay directly all additional Excise Taxes imposed upon the
Executive and all costs, legal fees and other expenses (including additional interest and
penalties) incurred in connection with such contest and shall indemnify the Executive for and hold
him harmless from, on an after-tax basis, any additional Excise Tax (including interest and
penalties) imposed upon the Executive and any Excise Tax or income or employment tax (including
interest and penalties) attributable to the Company’s payment of that additional Excise Tax on the
Executive’s behalf or imposed as a result of such representation and payment of all related costs,
legal fees and expenses. The amounts owed to the Executive by reason of the foregoing shall be
paid to him or on his behalf as they become due and payable. Without limiting the foregoing
provisions of this subparagraph (D), the Company shall control all proceedings taken in connection
with such contest and, at its sole option, may pursue or forgo any and all administrative appeals,
proceedings, hearings and conferences with the taxing authority in respect of such claim and may,
at the Company’s sole option, either direct the Executive to pay the tax claimed and sue for a
refund or contest the claim in any permissible manner, and the Executive shall prosecute such
contest to a determination before any administrative tribunal, in a court of initial jurisdiction
and in one or more appellate courts, as the Company shall determine; provided, however, that should
the Company direct the Executive to pay such claim and sue for a refund, the Company shall advance
the amount of such payment to the Executive, on an interest-free basis, and shall indemnify the
Executive for and hold him harmless from, on an after-tax basis, any Excise Tax or income or
employment tax (including interest or penalties) imposed with respect to such advance or with
respect to any imputed income with respect to such advance or any income resulting from the
Company’s forgiveness of such advance; provided, further, that the Company’s control of the contest
shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder, and
the Executive shall be entitled to settle or contest, as the case may be, any other issue raised by
the Internal Revenue Service or any other taxing authority.

     5. Definitions. For purposes of this Appendix, the following definitions shall be in effect:

     Average Compensation means the average of the Executive’s W-2 wages from Veritas for the five
(5) calendar years or fewer number of calendar years completed immediately prior to the calendar
year in which the Change in Control is effected.

 

 

     Code means the Internal Revenue Code of 1986, as amended.

     Common Stock means the Company’s common stock.

     Independent Auditors means a nationally-recognized public accounting firm mutually acceptable
to both the Company and the Executive.

     Parachute Payment means any payment or benefit in the nature of compensation which is made to
Executive in connection with the Acquisition and which is deemed to constitute a parachute payment
under Code Section 280G(b)(2) and the Treasury Regulations issued thereunder.

     Permissible Parachute Amount means a dollar amount equal to 2.99 times the Executive’s Average
Compensation.

     Present Value means the value, determined as of the Closing Date or other relevant date under
applicable Treasury Regulations, of any payment in the nature of compensation to which the
Executive becomes entitled in connection with the Acquisition or his subsequent termination,
including (without limitation) the Parachute Payment attributable to any of the Payments. The
Present Value of each such payment shall be determined in accordance with the provisions of Code
Section 280G(d)(4), utilizing a discount rate equal to one hundred twenty percent (120%) of the
applicable Federal rate in effect at the time of such determination, compounded semi-annually to
the effective date of the Acquisition.exv10w04

 

Exhibit 10.04

Symantec Corporation

Employment Agreement

December 15, 2004

John Brigden

350 Ellis Street

Mountain View, CA 94043

Dear John:

As you know, Symantec Corporation, a Delaware corporation (“Symantec”), is acquiring (the
“Acquisition”) your employer, VERITAS Corporation, a Delaware corporation (“Company” or “Veritas”),
pursuant to the Agreement and Plan of Reorganization dated on or about December 15, 2004 (the
“Merger Agreement”) by and among Symantec, Carmel Acquisition Corp., a wholly-owned acquisition
subsidiary of Symantec, and the Company. It is a material inducement and condition to Symantec’s
execution and delivery of the Merger Agreement and its willingness to complete the acquisition that
you enter into this employment agreement. This agreement becomes effective upon the closing of the
Acquisition (the “Closing Date” or the “Closing”). If you accept this offer, and the contingencies
of this offer are satisfied, on the Closing Date you will become an employee of Symantec or if
Symantec elects to operate Company as a separate subsidiary, an employee of that subsidiary
(whichever case applies, the “Symantec Employer”), on the following terms.

1. Your Position

You will initially have the title of Co-General Counsel, Grade 20, reporting to the Chief Executive
Officer. The Symantec Employer may, from time to time, at its sole discretion, change your title,
grade, duties and the person to whom you report, subject to your rights under the Termination for
Good Reason provisions of Section 9 of this agreement.

2. Compensation and Benefits

You will receive an annual base salary of $400,000, less all applicable deductions and withholding,
and you will be eligible for an annual focal (performance) review. You will be eligible to
participate in the Symantec Corporation Variable Pay Plan, which pays annually, based upon our
success and your individual performance, with your annual target bonus thereunder to be set at not
less than sixty percent (60%) of your annual base salary and other eligible compensation (the
“Target Bonus”), and any other incentive plans for which you may become eligible. In addition, you
will participate in all of Symantec’s and the Symantec Employer’s employee benefits, benefit plans
and programs for which you are eligible and you will be entitled to all perquisites of other
Symantec Employer executives at your same grade. Please note that Company benefits will continue
until you are eligible to enroll and participate in Symantec’s benefits. You will also during your
employment period with the Symantec Employer participate in the Symantec Executive Retention Plan
or any successor plan.

 

 

3. Sign-On Incentive Bonus Payment

In connection with your commencement of employment with Symantec Employer, you will be eligible to
receive a sign-on incentive bonus payment of $900,000 (the “Incentive Bonus”), which will be
payable in three (3) installments. One third of the Incentive Bonus will be payable six (6) months
after the Closing Date, another third of the Incentive Bonus will be payable twelve (12) months
after the Closing Date, and the remaining one third of the Incentive Bonus will be payable eighteen
(18) months after the Closing Date, subject to the conditions below. Symantec shall withhold all
applicable income and employment taxes from any amount paid to you.

You will be entitled to each particular installment of the Incentive Bonus only if you are employed
by Symantec on the date specified above for the payment of that installment; provided, however, if
your employment is terminated by Symantec other than for Cause (as defined below) or if your
termination qualifies as a Resignation for Good Reason (as defined below) you will be entitled to
receive any unpaid portion of the Incentive Bonus under the terms and conditions specified below.

4. New Hire Option Grant

Within five (5) business days after the Closing, the Compensation Committee of the Board of
Directors will grant you an option to purchase 87,500 shares of common stock of Symantec (the
“Symantec Common Stock”) under the Symantec 2004 Equity Incentive Plan. The option exercise price
will be the closing price of the Symantec Common Stock on the Nasdaq National Market on the last
trading day prior to the option grant date, as reported in the Wall Street Journal. You
will be provided with the standard Symantec form of stock option agreement at the time of grant of
such option (the “Symantec Option”). The Symantec Option will vest over a four-year period starting
from your first day of employment with Symantec, at the rate of 25% of the option at the end of
your first year of employment, and the balance in a series of 36 successive equal monthly
installments upon your completion of each additional month of employment thereafter and will
not be subject to acceleration except in accordance with the provisions of the Executive
Retention Plan. You will be eligible for future Symantec options in the sole discretion of the
Symantec Compensation Committee.

5. Veritas Options

On the Closing Date your outstanding Veritas stock options with an exercise price of $49.00 or less
(the “Company Options”) and your Veritas restricted stock units (the “Veritas Restricted Stock
Units”) will be assumed by Symantec and adjusted to reflect the terms of the Merger Agreement.
Accordingly, following the Acquisition, your Veritas Options and Veritas Restricted Stock Units
will be exchanged for options and units to acquire Symantec Common Stock, and you will continue to
vest in your Veritas Options and Veritas Restricted Stock Units, over your period of service with
the Symantec Employer following the Acquisition, in accordance with the same vesting schedule in
effect for each Veritas Option and Veritas Restricted Unit grant immediately prior to the Closing
Date; provided, however, that for purposes of each such vesting schedule the Veritas Options and
Veritas Restricted Stock Units which vest on an accelerated basis on the Closing Date shall be
deemed to constitute a ratable portion (i.e. the percentage accelerated) of the shares subject to
each installment under such schedule which was unvested immediately prior to such acceleration,
unless specifically provided otherwise in the agreement evidencing the grant. You will receive a
Stock Option and Restricted Stock Unit Assumption Agreement (to be entered into by you) informing
you of the specific adjustments to the number of shares, the exercise price (if applicable) and the
number of shares subject to each vesting installment that have been made to your Veritas Options
and the Veritas Restricted Stock Units to reflect the exchange ratio in effect for the Acquisition.

 

 

6. Term and Place of Employment

This agreement does not constitute a contract of employment for any specific period of time but
will create an “employment at will” relationship. Either Symantec or you may terminate the
employment relationship for any reason at any time. Your participation in any of Symantec’s stock
option or benefit programs or your Incentive Bonus will not have any effect on your “employment at
will” relationship with Symantec or interfere with or restrict in any way the rights of Symantec to
discharge you or change the terms of your employment (or of any employment agreement) at any time
for any reason whatsoever, with or without Cause. You agree that if requested by the Symantec
Employer you will relocate to the Symantec Employer’s offices in Cupertino, California no later
than the last day of the month in which the Closing Date occurs.

Upon the termination of your employment with the Symantec Employer at any time for any reason, you
would be paid your salary through your date of termination and for the value of all unused paid
time off earned through that date, based on your rate of base salary at that time. You would also
be allowed to continue your medical coverage at your own expense to the extent provided for by
COBRA and you would be allowed to exercise your vested options, if any, during the time period set
forth in, and in accordance with, your governing stock option agreement(s). The foregoing accrued
payments and benefits will be collectively referred to herein as the “Accrued Compensation.”

7. Special Severance Benefits 

In the event you voluntarily terminate your employment with your Symantec Employer for any reason
(other than a Resignation for Good Reason) within the first twelve (12) months following the
Closing Date, then you will become entitled to the same severance benefits you would have received
under your Change in Control Agreement with Veritas (the “Veritas Change in Control Agreement”)
attached hereto as Exhibit A had your employment terminated on the Closing Date by reason
of a Resignation for “Good Reason” as defined in the Veritas Change in Control Agreement.
Accordingly, your salary continuation payments and your target bonus and pro-rated bonus under your
Change in Control Agreement will be calculated on the basis of the base salary and target bonus in
effect for you immediately prior to the Closing Date. In addition, all of your Veritas Options and
Veritas Restricted Stock Units as assumed by Symantec in the Acquisition other than the Veritas
Options granted to you after the date of this agreement, shall, to the extent outstanding but not
yet vested, vest and become immediately exercisable or issuable as to all the Symantec shares
subject to those options and units at the time of your termination of employment with the Symantec
Employer, and you shall have the limited period specified in each of the applicable option
agreement for your Veritas Options to exercise those Veritas Options following your termination of
employment with the Symantec Employer. The shares issuable to you under your Veritas Restricted
Stock Units will be subject to Symantec’s collection of the applicable withholding taxes. Your
salary continuation payments shall be paid over the same period specified in your Veritas Change in
Control Agreement, and you shall be subject during that period to the restrictive covenants of
Section 3(e) of your Veritas Change in Control Agreement. In the event of a material breach of your
obligations under such Section 3(e) of the Veritas Change in Control Agreement during the salary
continuation period, Symantec shall as its remedy be relieved of all further obligations to pay the
remaining unpaid salary continuation payments. Notwithstanding the foregoing, your benefit
entitlement under this Section 7 shall be conditioned upon your delivery to Symantec of an
effective release in the form of attached Exhibit B (the “Release”). In addition, such
benefits will be in lieu of any entitlement you may have to notice of termination, pay in lieu of
notice of termination, or any other severance payment or benefit from any other Veritas or Symantec
Employer source. In no event will any of your benefits under the Veritas Change in Control
Agreement be reduced by any compensation you earn as an employee of the Symantec Employer,
including (without limitation) any installment of your Incentive Bonus.

 

 

8. Termination for Cause; Termination without Good Reason; Termination other than pursuant to
Section 7 

If your employment with the Symantec Employer is terminated by the Symantec Employer for “Cause”
(as defined below) or you voluntarily terminate your employment other than by a “Resignation for
Good Reason” (as defined below) at any time, you will be entitled to the Accrued Compensation.
Such Accrued Compensation will be in addition to any benefits to which you are entitled under
Section 7. All of your other benefits and future stock option or restricted stock unit
vesting, if any, would terminate. In addition, you would not be entitled to any further
installments of the Incentive Bonus. Neither Symantec nor the Symantec Employer would have an
obligation to pay you, and you would have no right to, any severance except as may be provided at
such time under any of Symantec’s or the Symantec Employer’s other employee benefit plans for which
you were then eligible or as provided in Section 7.

9. Termination without Cause or Termination for Good Reason

If your employment with the Symantec Employer terminates by reason of a “Termination without
“Cause” (as defined below) or your “Resignation for Good Reason” (as defined below), the following
provisions shall apply:

     • All of your assumed Veritas Options and Veritas Restricted Stock Units as assumed by
Symantec in the Acquisition shall, to the extent outstanding but not yet vested, vest and become
immediately exercisable or issuable as to all the Symantec shares subject to those options and
units at the time of your termination of employment with the Symantec Employer. You shall have the
limited period specified in each of the applicable option agreements for your Veritas Options to
exercise those Veritas Options following your termination of employment with the Symantec Employer.
The shares issuable to you under your Veritas Restricted Stock Units will be subject to Symantec’s
collection of the applicable withholding taxes.

     • In addition to the Accrued Compensation, you will be entitled to receive the remaining
unpaid portion of your Incentive Bonus as follows: fifty percent (50%) of such portion on your
termination date, and the remaining fifty percent at the end of the twelve (12)-month period
measured from your termination date. During such twelve (12)-month period, you shall be available
to provide consulting services to Symantec for not more than ten (10) hours per month and shall not
perform functions similar to the functions you performed for Symantec or Veritas for any entity
that is a Competing Business. As used herein, “Competing Business” means any entity that develops,
manufactures, sells, licenses, installs, maintains or supports any data protection, storage
management, high availability, application performance management or disaster recovery software or
similar products. In the event of a material breach of your obligations during the foregoing
12-month period, Symantec shall as its remedy be relieved of all further obligations to pay the
remaining unpaid installments of the Incentive Bonus.

     • Symantec shall, at its sole cost and expense, provide you and your spouse and other eligible
dependents with continued health care coverage under the Symantec group health plan, at
substantially the same level of coverage and benefits in effect for them at the time of your
termination of employment, until the earlier of (i) the expiration of the twelve (12)-month period
measured from the first day of the first month following the date of your termination of employment
or (ii) the first date you are covered under another employer’s health benefit program which
provides substantially the same level of benefits without exclusion for pre-existing medical
conditions.

The severance benefits provided under this Section 9 are conditioned upon your delivery of
an effective Release. In addition, such benefits will be in lieu of any entitlement you may have
to notice of

 

 

termination, pay in lieu of notice of termination, or any other severance payment or benefit from
any other Veritas or Symantec Employer source other than your benefits under the Executive
Retention Plan.

10. Definitions. For purposes of this agreement, the following definitions shall be in
effect:

     (a) “Termination without Cause” means termination of your employment by the Symantec Employer
for any reason other than a termination for Cause. Termination without Cause shall be deemed to
occur upon the termination of your employment by reason of death or Permanent Disability. A
termination for “Cause” will mean a termination for any of the following reasons: (i) conduct
constituting willful gross neglect or willful gross misconduct in carrying out your duties,
resulting, in either case, in material economic harm to Symantec, unless you believe in good faith
that such conduct was in, or not opposed to, the best interest of Symantec; (ii) a material breach
by you of one or more obligations under this agreement, and/or the attached Employee Agreement;
(iii) any unjustified refusal to follow reasonable directives of the person to whom you report
relating to the performance of your duties after there has been delivered to you a written demand
for performance which describes the specific material deficiencies in your performance and the
specific manner in which your performance must be improved, all in accordance with the Symantec
Employer performance management plan, and which provides forty (40) business days from the date of
notice, or the amount of time specified in any applicable Symantec Employer performance management
plan, whichever is greater, to remedy such performance deficiencies; (iv) a material
dereliction of the major duties, functions and responsibilities of your position; (v) a material
breach by you of any of your fiduciary obligations as an officer of Symantec; or (vi) your
conviction of a felony crime involving moral turpitude or your commission of any material act of
dishonesty, theft or embezzlement. The Symantec Employer will provide you with written notice of
the reason for termination in the case of any termination for “Cause” and, with respect to a clause
(ii) or (iv) act or omission, a period of not less that forty (40) business days in which to cure
the specified breach or performance deficiency and thereby avoid a termination for Cause by reason
thereof.

     (b) “Permanent Disability” means your inability, by reason of any physical or mental injury or
illness expected to result in death or to be of a continuous duration of six (6) months or more, to
substantially perform the services required for your job title pursuant to this agreement.

     (c) “Resignation for Good Reason” means your resignation due to any one of the following
events taken without your written consent and not corrected within ten (10) days after your
delivery of written notice to Symantec’s Senior Vice President of Human Resources or his/her
designee: (i) a material reduction or change without your written consent in the scope of your
duties or responsibilities, or in your Title or Grade, from the duties, responsibilities, Title or
Grade in effect immediately prior to any such reduction or change; (ii) a change in the position to
which you report which results in you reporting to a person who is more than one level below the
position to which you previously reported; (iii) a reduction in the aggregate dollar amount of your
base salary and Target Bonus by more than fifteen percent (15%); (iv) a relocation of your
principal place of employment by more than sixty (60) miles or (v) the failure of any successor to
Symantec to assume the obligations of Symantec under this agreement.

11. Special Tax Payment. You will be entitled to the special Gross-Up Payment set forth in
Appendix I to this agreement, to the extent one or more payments or benefits you receive in
connection with the Acquisition, whether received before or after the Closing Date, are deemed to
constitute parachute payments under Section 280G of the Internal Revenue Code and you otherwise
qualify for the Gross-Up Payment in accordance with the provisions of Appendix I. However, should
your employment with your Symantec Employer terminate by reason of your voluntary resignation
within the eighteen (18)-month period measured from the Closing Date under circumstances which do
not qualify as a Resignation for Good Reason or by reason of a Termination without Cause, then you
shall not be entitled to any Gross-Up Payment, and to the extent one or more Gross-Up Payments are
made to you prior to the

 

 

termination of your employment under such circumstances, you shall promptly repay those payments on
your termination date.

12. Indemnification. With respect to all matters, transactions, acts or omissions which
occur at or prior to the Closing Date, you shall have all the rights to indemnification and
insurance that are set forth in Section 5.7 of the Merger Agreement and shall be entitled to
enforce Section 5.7 against Symantec. A copy of Section 5.7 of the Merger Agreement is attached
hereto as Exhibit C. You will be provided with the standard form of indemnity agreement
and fiduciary insurance currently provided to executive officers of Symantec, a copy of which is
set forth as Exhibit D attached hereto.

13. Full-Time Employment/ Conflicts of Interest

You agree that during your employment with the Symantec Employer you will not engage in any other
employment or business related activity unless you obtain prior written approval from your manager.
You further agree that you have disclosed to Symantec all of your existing employment and/or
business relationships, including, but not limited to, any consulting or advising relationships,
outside directorships, investments in privately held companies, and any other relationships that
may create a conflict of interest.

14. Documentation

This offer is contingent upon the successful completion of the Acquisition, your consent to, and
results satisfactory to the Symantec Employer of, a background check as well as your execution of
the Employee Agreement in the form attached hereto as Exhibit E. The Immigration Reform
and Control Act of 1986 requires that Symantec review proof of all new employees’ identity and
authorization to work in the U.S. In addition, Symantec is required by law to verify employees’
eligibility to access certain technology that Symantec designs, produces, and uses and which is
subject to export controls. Accordingly, this offer is necessarily contingent upon Symantec’s
receipt of satisfactory evidence that it can comply with these legal requirements with respect to
you. Satisfactory completion of the enclosed Form I-9 and Form I-9 Supplement–Symantec Corporation
Technology Transfer Assessment, and presentation of satisfactory documentary evidence of your
identity and authorization to work in the U.S. will need to be accomplished prior to the Closing
Date. The Form I-9 contains information regarding what documentary evidence is acceptable for
completing the form. A Form I-9 and a Form I-9 Supplement – Symantec Corporation Technology
Transfer Assessment are enclosed.

15. Miscellaneous

At all times during your employment, you agree to abide by the Symantec Employer’s employment
policies and procedures, as such policies and procedures may be in effect from time to time.
However, if any policy or procedure conflicts with any express term of this agreement, this
agreement will control.

You agree that there were no promises or commitments made to you regarding your employment with
Symantec or the Symantec Employer except as set forth in this letter. Except as provided for
herein, this agreement supersedes and replaces (i) any prior verbal or written agreements between
you and Symantec and (ii) any prior verbal or written agreements between you and Company relating
to the subject matter hereof, including, but not limited to, benefits under the Prior Agreements
except as specifically set forth above.

Upon the Closing Date, this agreement, the Employee Agreement and the Stock Option and Restricted
Stock Unit Assumption Agreement, which documents are substantially similar to those currently
required to be entered into by other employees located in the United States, will be the entire
agreement relating to your employment with the Symantec Employer and it shall supersede and replace
any prior verbal or written agreements between you and Symantec or Veritas pertaining to employment
or benefits upon a change in control or termination of your employment, except as specifically
provided above. In addition,

 

 

any confidential/proprietary/trade secrets information and inventions agreement(s) or any
obligations you have to Veritas regarding your refraining from soliciting customers or employees of
Veritas, or any predecessor thereto, will remain in effect as it pertains to subject matters
existing prior to the Closing Date.

This agreement may be amended or altered only in a dated document signed by you and Symantec’s
Senior Vice President of Human Resources or his/her designee. No waiver of any term or provision
of this agreement will be valid unless such waiver is in writing signed by the party against whom
enforcement of the waiver is sought. The waiver of any term or provision of this agreement will
not apply to any subsequent breach of this agreement.

This agreement will be construed and interpreted in accordance with the laws of the State of
California. Each of the provisions of this agreement is severable from the others, and if any
provision hereof will be to any extent unenforceable, it and the other provisions will continue to
be enforceable to the full extent allowable, as if such offending provision had not been a part of
this agreement.

[Signature Page Follows]

 

 

If you have any questions about this offer, please contact me. If you find this agreement
acceptable, please sign and date this letter below and return it to me. This offer, if not
accepted, will expire immediately after the closing of the Acquisition.

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	Sincerely,
	 
	 	 	 	 	 	 
	 	 	 	 	Symantec Corporation 

	 	 	 	 	a Delaware corporation
	 
	 	 	 	 	 	 
	

	 	 	 	By:	 	/s/ Rebecca Ranninger
	

	 	 	 	 	 	 
	

	 	 	 	Name:	 	 
	

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	I agree to the terms and conditions in this offer.	 	 	 	 
	 
	 	 	 	 	 	 
	Date:
	 	December 16, 2004	 	 	 	/s/ John Brigden
	 	 	 	 	 
	 	 	 	 	«First_Name» «Lastname»

Enclosures:

	 	 	 
	          Exhibit A

	 	Veritas Change in Control Agreement
	 
	 	 
	          Exhibit B

	 	General Release Agreement
	 
	 	 
	          Exhibit C

	 	Indemnification Provision
	 
	 	 
	          Exhibit D

	 	Form of Indemnity Agreement
	 
	 	 
	          Exhibit E

	 	Employee Agreement
	 
	 	 
	          Appendix I

	 	Special Tax Payments

[Signature Page to Employment Agreement]

 

 

Exhibit A

Veritas Change in Control Agreement

 

 

CHANGE IN CONTROL AGREEMENT

     
This Change in Control Agreement is entered into between VERITAS
Software Corporation, a Delaware corporation (“VERITAS” or
the “Corporation”), and John Brigden
(“Executive”) as of March 15, 2004. Terms that are not
defined in the text of this Agreement are defined in Exhibit A
hereto.

     
1. Term, Purpose, and
Governing Documents. This Agreement shall remain in effect until March 15, 2005, at
which time it will automatically renew for a subsequent one-year term
unless VERITAS provides notice of its intention not to renew at least
one month prior to the end of the one-year term; however, VERITAS may
not provide such notice of non-renewal if the Company is the subject
of a possible Change in Control or for a one-year period following a
Change in Control. This Change in Control Agreement shall supersede
any and all written or verbal agreements related to severance
benefits in the event of a change in control; however, all other
terms contained in VERITAS’ offer letter and/or employment
agreement with Executive (including Executive’s at-will
employment relationship with VERITAS) shall remain unchanged.

     
2. Benefits in the Event of a Change in
Control. In the event of a Change in Control pursuant to which the
acquiring or successor company assumes or continues in effect the
Executive’s Options, issues comparable substitute options or
stock based awards for the Executive’s Options or provides a
cash incentive program that preserves the spread existing under the
Executive’s Options (or substitute options or stock based
awards) shall vest and become exercisable, immediately upon the
consummation of the Change in Control, with respect to fifty percent
(50%) of the unvested shares under each such Option. In the event the
acquiring or successor company does not assume or continue in effect
the Executive’s Options, issue comparable substitute options or
stock based awards for the Executive’s Options, issue comparable
substitute options or stock based awards for the Executive’s
Options or provide a cash incentive program that preserves the spread
existing under the Executive’s Options pursuant to the terms of
the applicable Plan(s), then each of the Executive’s Options
shall vest and become exercisable, immediately upon consummation of
the Change in Control, with respect to 100% of the unvested shares
under each such Option.

     
3. Severance Benefits in the Event of a
Change in Control. If Executive’s employment with VERITAS
terminates because of a Termination Without Cause or a Resignation
for Good Reason within twelve (12) months after consummation of a
Change in Control, and if Executive complies with the Restrictive
Covenant set forth below, then Executive shall be entitled to receive
the following severance benefits:

		
	 	     
    (a) Salary Continuation. Executive shall continue to
receive Executive’s base salary in effect on the termination
date for a period of twelve (12) months from the date of
Executive’s termination of employment (the “Termination
Date”). These payments shall be made bi-weekly on VERITAS’
standard payroll dates and shall be subject to required deductions
and withholdings.

1

 

     
(b) Target Bonus Consideration. Executive shall
receive Target Bonus consideration consisting of two components,
both of which are based upon the Target Bonus in effect for
Executive immediately prior to the Change in Control:
(1) an amount equal to one hundred percent (100%) of the
Executive’s annual Target Bonus; and (2) an additional
amount that represents a prorated percentage of the
Executive’s annual Target Bonus based upon the number of
days that have passed in the current fiscal year as of the
Termination Date. The Target Bonus consideration shall be paid
within thirty (30) days of the Termination Date and shall be
subject to required deductions and withholdings.

     
(c) Option Acceleration. Each Option outstanding at
the time of Executive’s termination, but not otherwise
vested and exercisable for all of the shares subject to that
Option, will immediately vest on an accelerated basis so that
each such Option shall become exercisable for an additional
amount equal to one hundred percent (100%) of the then unvested
shares under such Option, and any shares subject to those
Options which are not otherwise issued and outstanding at the
time of such acceleration shall be issued to Executive in
accordance with the terms of the Options.

     
(d) Benefits. To the extent provided by the federal
COBRA law or, if applicable, state insurance laws, and
VERITAS’ group health insurance policies, Executive will be
eligible for continuation of Executive’s group health
insurance. If Executive timely elects such continuation by
completing and returning the necessary COBRA enrollment forms,
VERITAS shall pay the premiums necessary to continue
Executive’s then-current health insurance coverage
(medical, dental and vision) for Executive and his eligible
dependents for a period of twelve (12) months after the
Termination Date or (if earlier) until the Executive and his
dependents are covered under another employer’s health care
benefit plan without exclusion for any pre-existing medical
condition.

     
(e) Restrictive Covenant. The severance benefits
described in this section are subject to a restrictive covenant.
Specifically, in consideration of the foregoing benefits,
Executive agrees to the following: (1) at the time of
signing this Agreement Executive shall also execute the VERITAS
Confidentiality and Intellectual Property Agreement;
(2) Executive shall execute and deliver to VERITAS a
Release in a form acceptable to VERITAS in exchange for receiving
severance benefits (see Exhibit B); (3) during
the twelve (12) month period Executive receives severance
benefits Executive shall be available to provide consulting
services to VERITAS during such period for not more than ten
(10) hours per
month; and (4) during the twelve (12) month consulting period
Executive shall not perform functions similar to the functions
Executive performed for VERITAS for any entity that is a
Competing Business. As used herein, a Competing Business is any
entity that develops, manufactures, sells, licenses, installs,
maintains or supports any data protection, storage management,
high availability, application performance management or
disaster recovery software or similar products.

     
Executive acknowledges and agrees that Executive shall have
access to highly confidential information during
Executive’s employment with VERITAS and that the foregoing
restrictive covenant is reasonable to protect this confidential
information. Should Executive elect to receive these severance
benefits, Executive also understands that Executive is
voluntarily electing to adhere to the restrictive covenant as
well. All

2

 

severance benefits provided
for under this Agreement will be forfeited in the event
Executive elects to accept the benefits and later challenge the
restrictive covenant. Executive further acknowledges and agrees
that the promises and restrictive covenants provided herein do
not, and will not, prevent or restrict Executive in any way from
engaging in any lawful profession, trade, or business.

4.     Limitation
on Benefits. In the event that any payments to which
Executive becomes entitled in accordance with the provisions of
this Agreement would otherwise constitute a parachute payment
under Code Section 280G, then such payments will be subject
to reduction to the extent necessary to assure that Executive
receives only the greater of (i) the amount of those
payments which would not constitute such a parachute payment or
(ii) the amount which yields Executive the greatest
after-tax amount of benefits after taking into account any
excise tax imposed on the payments provided to Executive under
this Agreement (or on any other benefits to which Executive may
be entitled in connection with any change in control or
ownership of VERITAS or the subsequent termination of
Executive’s employment with VERITAS) under Code
Section 4999. Should a reduction in benefits be required to
satisfy the benefit limit of the foregoing paragraph, then
Executive’s salary continuation payments shall accordingly
be reduced to the extent necessary to comply with such benefit
limit. Should such benefit limit still be exceeded following
such reduction, then the number of shares which would otherwise
be purchasable under the vesting-accelerated portion of each of
Executive’s Options (based on the amount of the parachute
payment attributable to such option under Code
Section 280G) shall be reduced to the extent necessary to
eliminate such excess, with such acceleration of vesting being
cancelled in the reverse order of the date of grant of the stock
awards unless Executive elects in writing a different order of
cancellation. The accounting firm engaged by VERITAS for general
audit purposes as of the day prior to the effective date of the
Change in Control shall be retained by VERITAS to perform the
foregoing calculations at VERITAS’ expense.

5.     Remedies
in the Event of Executive’s Breach. Executive
acknowledges and agrees that any breach of Executive’s
obligations hereunder shall constitute a material breach of this
Agreement and shall, in addition to any other remedies available
in law or equity, allow VERITAS to cease performing its
obligations hereunder, including its obligations to provide any
of the benefits set forth in Sections 2 and 3 herein.

6.     Successors
and Assigns. The provisions of this Agreement shall
inure to the benefit of, and shall be binding upon,
(i) VERITAS and its successors and assigns, including any
successor entity by merger, consolidation or transfer of all or
substantially all of VERITAS’ assets (whether or not such
transaction constitutes a Change in Control), and (ii) the
Executive, the personal representative of Executive’s
estate and Executive’s heirs and legatees.

7.     Notices.
Any and all notices, demands or other communications required or
desired to be given hereunder by any party shall be in writing
and shall be validly given or made to another party if delivered
either personally or if deposited in the United States mail,
certified or registered, postage prepaid, return receipt requested.

3

 

8. Governing
Documents. This Agreement, and its Exhibits, together
with (i) the stock option agreements evidencing
Executive’s currently outstanding Options and any future
Option grants, (ii) Executive’s current or subsequent
Confidentiality and Intellectual Property Agreement, and
(iii) any outstanding promissory notes of Executive payable
to or to the order of VERITAS, shall constitute the entire
agreement and understanding of VERITAS and Executive with
respect to the payment of benefits in the event of a Change in
Control and shall supersede all prior and contemporaneous
written or verbal agreements and understandings between
Executive and VERITAS relating to such subject matter. In the
event of any conflict between this Agreement and any of the
aforementioned agreements, this Agreement shall govern.

9. Amendment.
This Agreement only may be amended by written instrument signed
by Executive and an authorized officer of VERITAS.

10. Governing
Law. The provisions of this Agreement shall be
construed and interpreted under the laws of the state that is
Executive’s principal place of employment at the time of
any alleged breach of this Agreement.

11. Severability.
If an arbitrator or court of competent jurisdiction determines
that any term or provision of this Agreement is invalid or
unenforceable, in whole or in part, then the remaining terms and
provisions hereof shall be unimpaired. Such arbitrator or court
will have the authority to modify or replace the invalid or
unenforceable term or provision with a valid and enforceable
term or provision that most accurately embodies the
parties’ intention with respect to the invalid or
unenforceable term or provision or, if such provision cannot be
so amended without materially altering the intention of the
parties, then such provision will be stricken, and the remainder
of this Agreement shall continue in full force and effect. The
invalidity of any provision of this Agreement shall in no way
affect (to the maximum extent permissible by law) the
application of such provision under circumstances different from
those adjudicated by the arbitrator or court, the application of
any other provision of this Agreement, or the enforceability or
invalidity of this Agreement as a whole.

12. Dispute
Resolution. Executive and the Company agree that any
dispute arising out of or relating to this Change in Control
Agreement will be resolved, to the fullest extent permitted by
law, by final, binding and confidential arbitration in San
Francisco, California conducted by Judicial Arbitration and
Mediation Services (“JAMS”) under its then-existing
rules and procedures. Executive acknowledges that by agreeing
to this arbitration procedure, both Executive and the Company
waive the right to resolve any such dispute through a trial by
jury or judge or by administrative proceeding. In addition
to and notwithstanding those rules, Executive and the Company
agree that the arbitrator shall: (a) have the authority to
compel adequate discovery for the resolution of the dispute and
to award such relief as would otherwise be permitted by law; and
(b) issue a written arbitration decision including the
arbitrator’s essential findings and conclusions and a
statement of the award. The Company shall pay all of the JAMS
arbitration fees in excess of those administrative fees Executive
would be required to pay if the dispute were decided in a court of
law. Nothing in this Agreement is intended to prevent either
Executive of the Company from

4

 

obtaining injunctive relief in court to prevent irreparable harm
pending the conclusion of any such arbitration.

     
IN WITNESS WHEREOF, the parties have executed this Change
in Control Agreement as of the day and year written above.

			
	 	VERITAS SOFTWARE CORPORATION
	 
	 
	 	By: 	/s/ Edward Malysz
	 	 	

	 
	 	Title: 	Assistant Secretary
	 	 	

	 
	 	EXECUTIVE
	 
	 	/s/ John Brigden
	 	

	 	John Brigden
	 
	 	Date:	3/16/04
	 	 	

5

 

EXHIBIT A

DEFINITIONS

     
For purposes of this Agreement, the following definitions shall
be in effect:

     
Change in Control means a change in the ownership or
control of VERITAS effected through the consummation of any of
the following transactions:

		
	 	     
    (i) a merger, consolidation or reorganization approved by
    VERITAS’ stockholders, unless securities representing more
    than fifty percent (50%) of the total combined voting power of
    the voting securities of the successor corporation are
    immediately thereafter beneficially owned, directly or
    indirectly and in substantially the same proportion, by the
    persons who beneficially owned VERITAS’ outstanding voting
    securities immediately prior to such transaction; or
	 
	 	     
    (ii) the sale, transfer or other disposition of all or
    substantially all of VERITAS’ assets in complete
    liquidation or dissolution of VERITAS; or
	 
	 	     
    (iii) any transaction or series of related transactions
    pursuant to which any person or any group of persons comprising
    a “group” within the meaning of Rule 13d-5(b)(1)
    under the Securities Exchange Act of 1934, as amended (other
    than VERITAS or a person that, prior to such transaction or series
    of related transactions, directly or indirectly controls, is
    controlled by or is under common control with, VERITAS) becomes
    directly or indirectly the beneficial owner (within the meaning
    of Rule 13d-3 of the Securities Exchange Act of 1934,
    as amended) of securities possessing (or convertible into or
    exercisable for securities possessing) more than fifty percent
    (50%) of the total combined voting power of VERITAS’
    securities outstanding immediately after the consummation of
    such transaction or series of related transactions, whether such
    transaction involves a direct issuance from VERITAS or the
    acquisition of outstanding securities held by one or more of
    VERITAS’ stockholders.

     
Code means the Internal Revenue Code, as amended from
time to time.

     
Disability means the Executive’s inability, by reason of any physical or mental injury or illness expected to result
in death or to be of a continuous duration of six
(6) months or more, to substantially perform the services
required of him/her under this Agreement.

     
Option means any stock or stock-based award granted to
the Executive under any of the Plans or otherwise, whether in
the form of restricted stock, restricted stock units, phantom
stock or other stock-based grant, to purchase shares of Common
Stock which is outstanding on the Termination Date.

     
Plan means any one of the following equity compensation
plans: (i) the VERITAS 1993 Equity Incentive Plan,
(ii) the VERITAS 2003 Stock Incentive Plan, as

2

 

amended or restated from time to time, and (iii) any successor stock
equity compensation plan to either of the foregoing plans
subsequently implemented by VERITAS.

     
Resignation for Good Reason means Executive’s resignation due to
any one of the following events without Executive’s consent:
(i) a material reduction in the scope of Executive’s
duties, responsibilities, authority or reporting structure from the
duties, responsibilities, authority and reporting structure in effect
immediately prior to any such reduction; (ii) a reduction in
the aggregate dollar amount of Executive’s base salary and
Target Bonus by more than fifteen percent (15%); (iii) a
relocation of Executive’s principal place of employment by more
than sixty (60) miles; or (iv) the failure of a successor to
VERITAS to assume the obligation of this Agreement.

     
Target Bonus means the annual target incentive bonus to which
Executive may become entitled under VERITAS’ Bonus Plan (or any
successor plan) for one or more fiscal years upon VERITAS’
attainment of the performance milestones designated for the applicable
year and Executive’s attainment of any personal objectives
specified for him/her for that year.

     
Termination Without Cause means VERITAS’ termination of
Executive’s employment for any reason other than a Termination
for Cause. Termination Without Cause shall not be deemed to
occur upon the termination of Executive’s employment by reason
of death or Disability. “Cause” for termination shall mean:
(i) conduct that constitutes willful gross neglect or willful
gross misconduct in carrying out Executive’s duties, resulting,
in either case, in material economic harm to the Corporation, unless
Executive believed in good faith that such conduct was in, or not
opposed to, the best interest of VERITAS; (ii) a breach by
Executive of one or more of Executive’s obligations under this
Agreement, Executive’s Offer Letter and/or Executive’s Proprietary Information
and Inventions Agreement with VERITAS; (iii) any unjustified
refusal to follow reasonable directives of the Company’s Chief
Executive Officer or its  Board of Directors;
(iv) Executive’s material dereliction of the major duties,
functions and responsibilities of Executive’s position; (v) a material breach by
Executive of any of Executive’s fiduciary obligations as an
officer of VERITAS; or (vi) Executive’s conviction of a
felony crime involving moral turpitude or Executive’s commission
of any act of dishonesty, theft or embezzlement.

7

 

EXHIBIT B

FORM OF RELEASE

I understand that my employment with VERITAS Software
Corporation (together with its subsidiaries, the
“Company”) terminated effective
                    ,
200     . I also understand
that, pursuant to the Change in Control Agreement between the
Company and me, I am required to sign this Release in exchange
for certain benefits under the Agreement. I further understand
that, regardless of whether I sign this Release, the Company
will pay me all accrued salary and vacation earned through my
termination date, to which I am entitled by law.

I hereby generally and completely release the Company and its
directors, officers, employees, shareholders, partners, agents,
attorneys, predecessors, successors, parent and subsidiary
entities, insurers, affiliates, and assigns from any and all
claims, liabilities and obligations, both known and unknown,
that arise out of or are in any way related to events, acts,
conduct, or omissions occurring prior to my signing this
Release. This general release includes, but is not limited to:
(1) all claims arising out of or in any way related to my
employment with the Company or the termination of that
employment; (2) all claims related to my compensation or
benefits from the Company, including salary, bonuses,
commissions, vacation pay, expense reimbursements, severance
pay, fringe benefits, stock, stock options, or any other
ownership interests in the Company; (3) all claims for
breach of contract, wrongful termination, and breach of the
implied covenant of good faith and fair dealing; (4) all
tort claims, including claims for fraud, defamation, emotional
distress, and discharge in violation of public policy; and
(5) all federal, state and local statutory claims,
including claims for discrimination, harassment, retaliation,
attorneys’ fees, or other claims arising under the federal
Civil Rights Act of 1964 (as amended), the federal Americans
with Disabilities Act of 1990, the Age Discrimination in
Employment Act of 1967 (“ADEA”), and the California
Fair Employment and Housing Act (as amended).

I acknowledge that I am knowingly and voluntarily waiving and
releasing any rights I may have under the ADEA, as amended. I
also acknowledge that the consideration given for the waiver and
release in the preceding paragraph hereof is in addition to
anything of value to which I was already entitled. I further
acknowledge that I have been advised by this writing, as
required by the ADEA, that: (a) my waiver and release do
not apply to any rights or claims that may arise after the
execution date of this Release; (b) I have been advised
hereby that I have the right to consult with an attorney prior
to executing this Release (although I may choose not to do so);
(c) I have twenty-one (21) days to consider this
Release (although I may choose to voluntarily execute this
Release earlier); (d) I have seven (7) days following
the execution of this Release to revoke the Release in a writing
to the Company; and (e) this Release will not be effective
until the date upon which the revocation period has expired,
which will be the eighth day after this Release is executed by
me.

I UNDERSTAND THAT THIS AGREEMENT INCLUDES A RELEASE OF ALL KNOWN
AND UNKNOWN CLAIMS. In giving this release, which includes
claims that may be unknown to me at present, I acknowledge that
I have read and understand

8

 

Section 1542 of the California Civil
Code which reads as follows: “A general release does not
extend to claims which the creditor does not know or suspect to
exist in his favor at the time of executing the release, which
if known by him must have materially affected his settlement
with the debtor.” I expressly waive and relinquish all
rights and benefits under that section and any law of any
jurisdiction of similar effect with respect to my release of any
unknown or unsuspected claims I may have against the Company.

Having read and understood
the foregoing, I hereby agree to the terms and conditions stated
above.

	 	 	 
	 
	 
	 
	 	 	 
	
    
    Executive

    	 	
    Date

9

 

Exhibit B

General Release Agreement

In consideration of the benefits offered to me by Symantec Corporation (“Symantec”) pursuant to my
Employment Agreement with Symantec dated December 15, 2004 (the “Employment Agreement”), and in
connection with the termination of my employment, I agree to the following release (the “Release”).

     1. On behalf of myself, my heirs, executors, administrators, successors, and assigns, I hereby
fully and forever release and discharge Symantec, its current, former and future parents,
subsidiaries, affiliated companies, related entities, employee benefit plans, and their
fiduciaries, predecessors, successors, officers, directors, shareholders, agents, employees and
assigns (collectively, the “Company”) from any and all claims, causes of action, and liabilities up
through the date of my execution of the Release which arise from or relate to my employment with
Symantec and/or any predecessor to Symantec and the termination of such employment, including
(without limitation) (i) claims relating to wrongful discharge of employment, (ii) claims for
physical or emotional injury, including claims for negligent or intentional infliction of emotional
distress in connection with my employment relationship or the termination of that relationship,
(iii) the following claims relating to stock options or other stock or stock-based awards received
from Symantec in connection with my employment with Symantec: vesting rights (other than rights
expressly provided under the Employment Agreement or the applicable grant or award agreement),
exercise periods beyond those specified in applicable grant or award documents, and promises or
representations regarding additional grants or awards beyond those which I hold at the time of my
termination, (iv) defamation, libel or slander to the extent those claims relate to matters
pertaining to my job performance with the Company, my actions as an executive or employee of the
Company or other activities in connection with my employment with the Company or the termination of
that employment or (v) damages asserted in shareholder derivative actions or shareholder class
actions against the Company and its officers and Board of Directors which relate to transactions or
matters which occurred during the period of my employment with Symantec (collectively the
“Claims”). All such Claims (including related attorneys’ fees and costs) are barred without regard
to whether those Claims are based on any alleged breach of a duty arising in statute, contract, or
tort. This expressly includes waiver and release of any rights and claims relating to my
employment with Symantec and/or any predecessor to Symantec and the termination of such employment
and the other released Claims which arise under any and all laws, rules, regulations, and
ordinances including, but not limited to: Title VII of the Civil Rights Act of 1964; the Older
Workers Benefit Protection Act; the Americans With Disabilities Act; the Age Discrimination in
Employment Act; the Fair Labor Standards Act; the National Labor Relations Act; the Family and
Medical Leave Act; the Employee Retirement Income Security Act of 1974, as amended (“ERISA”); the
Workers Adjustment and Retraining Notification Act; the California Fair Employment and Housing Act
(if applicable); the provisions of the California Labor Code (if applicable); the Equal Pay Act of
1963; and any other state or governmental entity, federal law or regulation relating to employment
or employment discrimination. The parties agree to apply California law in interpreting the
Release. Accordingly, I further waive any rights under Section 1542 of the Civil Code of the State
of California or any similar state statute. Section 1542 states: “A general release does not
extend to claims which the creditor does not know or suspect to exist in his favor at the time of
executing the release, which, if known to him, must have materially affected his settlement with
the debtor.” This Release does not extend to, and has no effect upon, (i) any compensation or
benefits that have accrued, and to which I have become vested or otherwise entitled, whether in
connection with my employment with Symantec or the termination of that employment, under the
Employment Agreement or any employee benefit plan within the meaning of ERISA sponsored by the
Company, (ii) my indemnification rights under Section 12 of the Employment Agreement or (iii) my
rights to any special tax payments under Section 11 of the Employment Agreement.

 

 

     2. In understanding the terms of the Release and my rights, I have been advised to consult
with an attorney of my choice prior to executing the Release. I understand that nothing in the
Release shall prohibit me from exercising legal rights that are, as a matter of law, not subject to
waiver such as: (a) my rights under applicable workers’ compensation laws; (b) my right, if any, to
seek unemployment benefits; and (c) my right to file a charge with the Equal Opportunity Commission
(EEOC) challenging the validity of my waiver of claims under the ADEA.

     3. I understand and agree that Symantec will not provide me with the benefits unless I execute
the Release. I also understand that I have received or will receive, regardless of the execution
of the Release, all wages owed to me together with any accrued but unused vacation pay, less
applicable withholdings and deductions, earned through my termination date.

     4. As part of my existing and continuing obligations to Symantec, I have returned to Symantec
all Symantec documents (and all copies thereof) and other Symantec property that I have had in my
possession at any time, including but not limited to Symantec files, notes, drawings, records,
business plans and forecasts, financial information, specification, computer-recorded information,
tangible property (including, but not limited to, computers, laptops, pagers, etc.), credit cards,
entry cards, identification badges and keys; and any materials of any kind which contain or embody
any proprietary or confidential information of Symantec (and all reproductions thereof). I
understand that, even if I did not sign the Release, I would still be bound by any and all
confidential/proprietary/trade secret information, non-disclosure and inventions assignment
agreement(s) signed by me in connection with my employment with Symantec, or with a predecessor or
successor of Symantec (“Employee Agreements”), pursuant to the terms of such agreement(s).

     5. I represent and warrant that I am the sole owner of all claims relating to my employment
with Symantec and/or with any predecessor of Symantec, and that I have not assigned or transferred
any claims relating to my employment to any other person or entity.

     6. I agree to keep the benefits and the provisions of the Release confidential and not to
reveal its contents to anyone except my lawyer, my spouse and/or my financial consultant or except
as required by applicable law or regulation.

     7. I understand and agree that the Release shall not be construed at any time as an admission
of liability or wrongdoing by either the Company or myself.

     8. I agree that I will not make any negative or disparaging statements or comments, either as
fact or as opinion, about the Company, its employees, officers, directors, shareholders, vendors,
products or services, business, technologies, market position or performance.

     9. Any controversy or any claim arising out of or relating to the interpretation,
enforceability or breach of the Release shall be settled by arbitration in accordance with
Symantec’s Arbitration Agreement, which I acknowledge having previously received. If for any
reason this Arbitration Agreement is not enforceable, I agree to arbitration under the employment
arbitration rules of the American Arbitration Association or any successor hereto. The parties
further agree that the arbitrator shall not be empowered to add to, subtract from, or modify, alter
or amend the terms of the Release. Any applicable arbitration rules or policies shall be
interpreted in a manner so as to ensure their enforceability under applicable state or federal law.
The cost of such arbitration shall be borne by the Company.

     10. I agree that I have had at least twenty-one (21) calendar days in which to consider
whether to execute the Release, no one hurried me into executing the Release during that period,
and no one coerced me into executing the Release. I understand that the offer of the benefits and
the Release shall expire on the twenty-second (22nd) calendar day after my employment
termination date if I have not accepted it by that time. I further understand that Symantec’s
obligations under the Release shall not

 

 

become effective or enforceable until the eighth (8th) calendar day after the date
I sign the Release provided that I have timely delivered it to Symantec (the “Effective Date”) and
that in the seven (7) day period following the date I deliver a signed copy of the Release to
Symantec I understand that I may revoke my acceptance of the Release. I understand that the
benefits will become available to me on or about the fourteenth (14th) calendar day
after the Effective Date.

     11. In executing the Release, I acknowledge that I have not relied upon any statement made by
Symantec, or any of its representatives or employees, with regard to the Release unless the
representation is specifically included herein. Furthermore, the Release contains our entire
understanding regarding eligibility for and the payment of severance benefits and supersedes any or
all prior representation and agreement regarding the subject matter of the Release. However, the
Release does not modify, amend or supersede written Symantec agreements that are consistent with
enforceable provisions of this Agreement such as the Employee Agreement and any stock, stock
option, restricted stock unit and/or stock purchase agreements between Symantec and me. Once
effective and enforceable, this agreement can only be changed by another written agreement signed
by me and an authorized representative of Symantec.

     12. Should any provision of the Release be determined by an arbitrator or court of competent
jurisdiction to be wholly or partially invalid or unenforceable, the legality, validity and
enforceability of the remaining parts, terms, or provisions are intended to remain in full force
and effect. I acknowledge that I have obtained sufficient information to intelligently exercise my
own judgment regarding the terms of the Release before executing the Release.

[Signature Page Follows]

 

 

EMPLOYEE’S ACCEPTANCE OF RELEASE

BEFORE SIGNING MY NAME TO THE RELEASE, I STATE THE FOLLOWING: I HAVE READ THE RELEASE, I
UNDERSTAND IT AND I KNOW THAT I AM GIVING UP IMPORTANT RIGHTS. I HAVE OBTAINED SUFFICIENT
INFORMATION TO INTELLIGENTLY EXERCISE MY OWN JUDGMENT. I HAVE BEEN ADVISED THAT I SHOULD CONSULT
WITH AN ATTORNEY BEFORE SIGNING IT, AND I HAVE SIGNED THE RELEASE KNOWINGLY AND VOLUNTARILY.

	 	 	 
	

	 	Date delivered to employee                     ,                     .
	 
	 	 
	

	 	Executed this                      day of                     ,                     .
	 
	 	 

	 	 	 	 	 
	

	 	 	 	 
	

	 	 	 	 
	

	 	Employee Signature	 	 
	 
	 	 	 	 
	

	 	 	 	 
	

	 	Employee Name (Please Print)	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 

[Signature Page to General Release Agreement]

 

 

Exhibit C

Indemnification Provision

5.7 Indemnification and Insurance.

     (a) Indemnification and Advancement. From and after the Effective Time, each of
Parent and the Surviving Corporation shall, and Parent shall cause the Surviving Corporation to:
(1) indemnify and hold harmless each person who served as a director or officer of the Company or
its Subsidiaries prior to the Effective Time (collectively, the “Company Indemnified Parties”) to
the fullest extent authorized or permitted by Delaware law, as now or hereafter in effect, in
connection with any Claim (as defined below) and any judgments, fines (including excise taxes),
penalties and amounts paid in settlement (including all interest, assessments and other charges
paid or payable in connection with or in respect of such judgments, fines, penalties or amounts
paid in settlement) resulting therefrom; and (2) promptly pay on behalf of or, within 30 days after
any request for advancement, advance to each of the Company Indemnified Parties, to the fullest
extent authorized or permitted by Delaware law, as now or hereafter in effect, any Expenses (as
defined below) incurred in defending, serving as a witness with respect to or otherwise
participating in any Claim in advance of the final disposition of such Claim, including payment on
behalf of or advancement to the Company Indemnified Party of any Expenses incurred by such Company
Indemnified Party in connection with enforcing any rights with respect to such indemnification
and/or advancement. The indemnification and advancement obligations of Parent and the Surviving
Corporation pursuant to this Section 5.7 shall extend to acts or omissions occurring at or
before the Effective Time and any Claim relating thereto (including with respect to any acts or
omissions occurring in connection with the approval of this Agreement and the consummation of the
transactions contemplated hereby and any Claim relating thereto) and all rights to indemnification
and advancement conferred hereunder shall continue as to a person who has ceased to be a director
or officer of the Company or its Subsidiaries prior to the Effective Time and shall inure to the
benefit of such person’s heirs, executors and personal and legal representatives. As used in this
Section 5.7, (1) the term “Claim” means any threatened, asserted, pending or completed
action, suit or proceeding, or any inquiry or investigation, whether instituted by the Company or
any governmental agency or any other party, that any Company Indemnified Party in good faith
believes might lead to the institution of any such action, suit or proceeding, whether civil,
criminal, administrative, investigative or other, including any arbitration or other alternative
dispute resolution mechanism, as a result of or in connection with such Company Indemnified Party’s
service as a director, officer, trustee, employee, agent, or fiduciary of the Company or any of its
Subsidiaries, or any employee benefit plan maintained by any of the foregoing at or prior to the
Effective Time; and (2) the term “Expenses” means attorneys’ fees and all other costs, expenses and
obligations (including, without limitation, experts’ fees, travel expenses, court costs, retainers,
transcript fees, duplicating, printing and binding costs, as well as telecommunications, postage
and courier charges) paid or incurred in connection with investigating, defending, being a witness
in or participating in (including on appeal), or preparing to investigate, defend, be a witness in
or participate in, any Claim for which indemnification is authorized pursuant to this Section
5.7, including any action relating to a claim for indemnification or advancement brought by a
Company Indemnified Party.

     (b) Certificate of Incorporation, Bylaws and Indemnification Agreements. In
furtherance and not in limitation of Section 5.7(a) hereof, from and after the Effective
Time, each of Parent and the Surviving Corporation shall, and Parent shall cause the Surviving
Corporation to: (1) include and cause to be maintained in the Surviving Corporation’s (or any
successor’s) Certificate of Incorporation and Bylaws for a period of at least six years from and
after the Effective Time,

 

 

provisions regarding elimination of liability of directors, indemnification of directors,
officers and employees and advancement of expenses which are no less advantageous to the intended
beneficiaries than the corresponding provisions contained in the Company’s Certificate of
Incorporation and Bylaws, in each case as in effect on the Agreement Date; and (2) otherwise keep
in full force and effect, and comply with the terms and conditions of, any agreement in effect as
of the Agreement Date between or among the Company or any of its Subsidiaries and any Company
Indemnified Party providing for the indemnification of such Company Indemnified Party.

     (c) Insurance. For a period of six years after the Effective Time, Parent shall cause
to be maintained in effect the current policies of directors’ and officers’ and fiduciary liability
insurance maintained by the Company, including with respect to Claims arising from facts or events
which occurred on or before the Effective Time (including those related to this Agreement and the
transactions contemplated hereby); provided, that Parent may substitute therefor policies of at
least the same coverage and amounts containing terms and conditions which are no less advantageous
to former officers and directors of the Company; and provided, further, that if the aggregate
annual premiums for such policies at any time during such period will exceed 300% of the per annum
premium rate paid by the Company and its Subsidiaries as of the Agreement Date for such policies,
then Parent shall only be required to provide such coverage as will then be available at an annual
premium equal to 300% of such rate. The provisions of the immediately preceding sentence shall be
deemed to have been satisfied if prepaid policies have been obtained prior to the Effective Time
for purposes of this Section 5.7(b), which policies provide such directors and officers
with coverage for an aggregate period of six years after the Effective Time, including with respect
to acts or omissions occurring at or prior to the Effective Time (including with respect to acts or
omissions occurring in connection with approval of this Agreement and consummation of the
transactions contemplated hereby), and nothing in Section 5.1(a) shall prohibit the Company
from obtaining such prepaid policies prior to the Effective Time, provided that the cost thereof
shall not exceed 300% of the per annum premium rate paid by the Company and its Subsidiaries as of
the Agreement Date for such policies. If such prepaid policies have been obtained prior to the
Effective Time, each of Parent and the Surviving Corporation shall, and Parent shall cause the
Surviving Corporation to, maintain such policies in full force and effect for their duration.

     (d) Survival of Claims. Notwithstanding anything herein to the contrary and to the
maximum extent permitted by Applicable Law, if any Claim is made or brought against any Company
Indemnified Party on or prior to the sixth anniversary of the Effective Time, the provisions of
this Section 5.7 shall continue in effect until the final disposition of such Claim.

     (e) Successors. If Parent, the Surviving Corporation or any of their respective
successors or assigns (1) shall consolidate with or merge with or into any other Person and shall
not be the continuing or surviving corporation or entity of such consolidation or merger or (2)
shall transfer all or substantially all of its properties or assets to any Person, then, in each
case, Parent shall take such action as may be necessary so that such Person shall assume all of the
applicable obligations set forth in this Section 5.7.

     (f) Enforceability. The provisions of this Section 5.7 are (1) intended to be
for the benefit of, and shall be enforceable by, each Company Indemnified Party (it being expressly
agreed that the Company Indemnified Parties to whom this Section 5.7 applies shall be third
party beneficiaries of this Section 5.7) and (2) in addition to, and not in substitution
for, any other rights to indemnification or contribution that any such Person may have by contract
or otherwise. The obligations of Parent under this Section 5.7 shall not be terminated or
modified in such a manner as to

 

 

adversely affect the rights of any Company Indemnified Party under this Section 5.7
without the consent of such affected Company Indemnified Party.

     (g) Expenses. Parent shall pay (as incurred) all Expenses that a Company Indemnified
Party may incur in enforcing the indemnity, advancement and other obligations set forth in this
Section 5.7.

     (h) Burden of Proof. In connection with any determination as to whether the Company
Indemnified Parties are entitled to the benefits of this Section 5.7, the burden of proof
shall be on the Parent and the Surviving Corporation to establish that a Company Indemnified Person
is not so entitled.

 

 

Exhibit D

Form of Indemnity Agreement

     This Indemnity Agreement, dated as of ___, is made by and between SYMANTEC
CORPORATION, a Delaware corporation (the “Company”), and __________, a director,
officer or key employee of the Company or one of the Company’s subsidiaries (the
“Indemnitee”).

RECITALS

     A. The Company is aware that competent and experienced persons are increasingly reluctant to
serve as representatives of corporations unless they are protected by comprehensive liability
insurance or indemnification, due to increased exposure to litigation costs and risks resulting
from their service to such corporations, and due to the fact that the exposure frequently bears
no reasonable relationship to the compensation of such representatives;

     B. The statutes and judicial decisions regarding the duties of directors and officers are
often difficult to apply, ambiguous, or conflicting, and therefore fail to provide such directors
and officers with adequate, reliable knowledge of legal risks to which they are exposed or
information regarding the proper course of action to take;

     C. Plaintiffs often seek damages in such large amounts and the costs of litigation may be so
substantial (whether or not the case is meritorious), that the defense and/or settlement of such
litigation is often beyond the personal resources of representatives;

     D. The Company believes that it is unfair for its representatives and the representatives of
its subsidiaries to assume the risk of large judgments and other expenses that may be incurred in
cases in which the representative received no personal profit and in cases where the director or
officer was not culpable;

     E. The Company recognizes that the issues in controversy in litigation against a
representative of a corporation such as the Company or a subsidiary of the Company are often
related to the knowledge, motives and intent of such representatives, that he or she is usually
the only witness with knowledge of the essential facts and exculpating circumstances regarding
such matters and that the long period of time which usually elapses before the trial or other
disposition of such litigation often extends beyond the time that the representative can
reasonably recall such matters; and may extend beyond the normal time for retirement for such
director or officer with the result that he, after retirement or in the event of his death, his
spouse, heirs, executors or administrators, may be faced with limited ability and undue hardship
in maintaining an adequate defense, which may discourage such a representatives from serving in
that position;

     F. Based upon their experience as business managers, the Board of Directors of the Company
(the “Board”) has concluded that, to retain and attract talented and experienced
individuals to serve as representatives of the Company and its subsidiaries and to encourage such
individuals to take the business risks necessary for the success of the Company and its
subsidiaries, it is necessary for the Company to contractually indemnify its representatives and
the representatives of its subsidiaries, and to assume for itself maximum liability for expenses
and

 

 

damages in connection with claims against such representatives in connection with their service
to the Company and its subsidiaries, and has further concluded that the failure to provide such
contractual indemnification could result in great harm to the Company and its subsidiaries and
the Company’s shareholders;

     G. Section 145 of the General Corporation Law of Delaware, under which the Company is
organized (“Section 145”), empowers the Company to indemnify by agreement its officers,
directors, employees and agents, and persons who serve, at the request of the Company, as
directors, officers, employees or agents of other corporations or enterprises, and expressly
provides that the indemnification provided by Section 145 is not exclusive;

     H. The Company has determined that the liability insurance coverage available to the Company
and its subsidiaries for their representatives as of the date hereof is inadequate and/or
unreasonably expensive. The Company believes, therefore, that the interests of the Company’s
shareholders would best be served by the indemnification by the Company of the representatives of
the Company and its subsidiaries.

     I. The Company desires and has requested the Indemnitee to serve or continue to serve as a
representatives of the Company and/or the subsidiaries of the Company free from undue concern for
claims for damages arising out of or related to such services to the Company and/or the
subsidiaries of the Company; and

     J. The Indemnitee is willing to serve, or to continue to serve, the Company and/or the
subsidiaries of the Company, provided that he is furnished the indemnity provided for herein.

AGREEMENT

     NOW, THEREFORE, the parties hereto, intending to be legally bound, hereby agree as follows:

     1. Definitions.

          (a) Agent. For the purposes of this Agreement, “agent” of the Company means any
person who is or was a director, officer, employee, attorney or other agent of the Company or a
subsidiary of the Company; or is or was serving at the request of, for the convenience of, or to
represent the interest of the Company or a subsidiary of the Company as a director, officer,
employee or agent of another foreign or domestic corporation, partnership, joint venture, trust
or other enterprise; or was a director, officer, employee or agent of a foreign or domestic
corporation which was a predecessor corporation of the Company or a subsidiary of the Company, or
was a director, officer, employee or agent of another enterprise at the request of, for the
convenience of, or to represent the interests of such predecessor corporation.

          (b) Expenses. For purposes of this Agreement, “expenses” includes all direct and
indirect costs of any type or nature whatsoever (including, without limitation, all attorneys’
fees and related disbursements, and other out-of-pocket costs) actually and reasonably incurred
by the Indemnitee in connection with either the investigation, defense or appeal of a proceeding
or establishing or enforcing a right to indemnification under this Agreement, Section 145 or
otherwise; provided, however, that expenses shall not include any judgments, fines, ERISA excise
taxes or penalties or amounts paid in settlement of a proceeding.

 

 

          (c) Proceeding. For the purposes of this Agreement, “proceeding” means any
threatened, pending, or completed action, suit or other proceeding, whether civil, criminal,
administrative, investigative or any other type whatsoever.

          (d) Subsidiary. For purposes of this Agreement, “subsidiary” means any corporation
of which more than 50% of the outstanding voting securities is owned directly or indirectly by
the Company, by the Company and one or more other subsidiaries, or by one or more other
subsidiaries.

     2. Agreement to Serve. The Indemnitee agrees to serve and/or continue to serve as
an agent of the Company, at its will (or under separate agreement, if such agreement exists), in
the capacity Indemnitee currently serves as an agent of the Company, so long as he is duly
appointed or elected and qualified in accordance with the applicable provisions of the Bylaws of
the Company or any subsidiary of the Company or until such time as he tenders his resignation in
writing, provided, however, that nothing contained in this Agreement is intended to create any
right to continued employment by Indemnitee.

     3. Mandatory Indemnification. The Company shall indemnify the Indemnitee:

          (a) Third Party Actions. If the Indemnitee is a person who was or is a party or is
threatened to be made a party to any proceeding (other than an action by or in the right of the
Company) by reason of the fact that he is or was an agent of the Company, or by reason of
anything done or not done by him in any such capacity, against any and all expenses and
liabilities of any type whatsoever (including, but not limited to, judgments, fines, ERISA excise
taxes or penalties, and amounts paid in settlement) actually and reasonably incurred by him in
connection with the investigation, defense, settlement or appeal of such proceeding if he acted
in good faith and in a manner he reasonably believed to be in or not opposed to the best
interests of the Company, and, with respect to any criminal action or proceeding, had no
reasonable cause to believe his conduct was unlawful; and

          (b) Derivative Actions. If the Indemnitee is a person who was or is a party or is
threatened to be made a party to any proceeding by or in the right of the Company to procure a
judgment in its favor by reason of the fact that he is or was an agent of the Company, or by
reason of anything done or not done by him in any such capacity, against any amounts paid in
settlement of any such proceeding, to the maximum extent permitted by law, and all expenses
actually and reasonably incurred by him in connection with the investigation, defense,
settlement, or appeal of such proceeding if he acted in good faith and in a manner he rea sonably
believed to be in or not opposed to the best interests of the Company; except that no
indemnification under this subsection shall be made in respect of any claim, issue or matter as
to which such person shall have been finally adjudged to be liable to the Company, unless and
only to the extent that the Court of Chancery or the court in which such proceeding was brought
shall determine upon application that, despite the adjudication of liability but in view of all
the circumstances of the case, such person is fairly and reasonably entitled to indemnity for
such amounts which the Court of Chancery or such other court shall deem proper; and

          (c) Actions Where Indemnitee is Deceased. If the Indemnitee is a person who was or
is a party or is threatened to be made a party to any proceeding by reason of the fact that he is
or was an agent of the Company, or by reason of anything done or not done by him in any such

 

 

capacity, against any and all expenses and liabilities of any type whatsoever (including, but not
limited to, judgments, fines, ERISA excise taxes or penalties, and amounts paid in settlement)
actually and reasonably incurred by or for him in connection with the investigation, defense,
settlement or appeal of such proceeding if he acted in good faith and in a manner he reasonably
believed to be in or not opposed to the best interests of the Company, and, prior to, during the
pendency or after completion of such proceeding Indemnitee is deceased, except that in a
proceeding by or in the right of the Company no indemnification shall be due under the provisions
of this subsection in respect of any claim, issue or matter as to which such person shall have
been finally adjudged to be liable to the Company, unless and only to the extent that the Court
of Chancery or the court in which such proceeding was brought shall determine upon application
that, despite the adjudication of liability but in view of all the circumstances of the case,
such person is fairly and reasonably entitled to indemnity for such amounts which the Court of
Chancery or such other court shall deem proper; and

     4. Partial Indemnification. If the Indemnitee is entitled under any provision of
this Agreement to indemnification by the Company for some or a portion of any expenses or
liabilities of any type whatsoever (including, but not limited to, judgments, fines, ERISA excise
taxes or penalties, and amounts paid in settlement) incurred by him in the investigation,
defense, settlement or appeal of a proceeding but not entitled, however, to indemnification for
all of the total amount thereof, the Company shall nevertheless indemnify the Indemnitee for such
total amount except as to the portion thereof to which the Indemnitee is not entitled.

     5. Mandatory Advancement of Expenses. Subject to Section 8 below, the Company shall
advance all expenses incurred by the Indemnitee in connection with the investigation, defense,
settlement or appeal of any proceeding to which the Indemnitee is a party or is threatened to be
made a party by reason of the fact that the Indemnitee is or was an agent of the Company or by
reason of anything done or not done by him in any such capacity. Indemnitee hereby undertakes to
repay such amounts advanced only if, and to the extent that, it shall ultimately be determined
that the Indemnitee is not entitled to be indemnified by the Company as authorized hereby. The
advances to be made hereunder shall be paid by the Company to the Indemnitee within twenty (20)
days following delivery of a written request therefor by the Indemnitee to the Company.

     6. Notice and Other Indemnification Procedures.

          (a) Promptly after receipt by the Indemnitee of notice of the commencement of or the threat
of commencement of any proceeding, the Indemnitee shall, if the Indemnitee believes that
indemnification with respect thereto may be sought from the Company under this Agreement, notify
the Company of the commencement or threat of commencement thereof.

          (b) In the event the Company shall be obligated to advance the expenses for any proceeding
against the Indemnitee, the Company, if appropriate, shall be entitled to assume the defense of
such proceeding, with counsel approved by the Indemnitee, upon the delivery to the Indemnitee of
written notice of its election so to do. After delivery of such notice, approval of such counsel
by the Indemnitee and the retention of such counsel by the Company, the Company will not be
liable to the Indemnitee under this Agreement for any fees of counsel subsequently incurred by
the Indemnitee with respect to the same proceeding, provided that (i) the Indemnitee shall have
the right to employ his counsel in any such proceeding at the Indemnitee’s expense; and (ii) if
(A) the employment of counsel by the Indemnitee has been previously authorized by the Company,
(B) the Indemnitee shall have notified the Board of Directors in writing that he has reasonably
concluded

 

 

that there may be a conflict of interest between the Company and the Indemnitee in the conduct of
any such defense or (C) the Company shall not, in fact, have employed counsel to assume the
defense of such proceeding, the fees and expenses of Indemnitee’s counsel shall be at the expense
of the Company.

     7. Determination of Right to Indemnification.

          (a) To the extent the Indemnitee has been successful on the merits or otherwise in defense
of any proceeding referred to in Section 3(a), 3(b) or 3(c) of this Agreement or in the defense
of any claim, issue or matter described therein, the Company shall indemnify the Indemnitee
against expenses actually and reasonably incurred by him in connection therewith.

          (b) In the event that Section 7(a) is inapplicable, the Company shall also indemnify the
Indemnitee if he has met the applicable standard of conduct required to entitle the Indemnitee to
such indemnification.

          (c) The Indemnitee shall be entitled to select the forum in which determination of whether
or not Indemnitee has met the applicable standard of conduct will be made from among the
following:

               (1) A quorum of the Board consisting of directors who are not parties to the proceeding for
which indemnification is being sought;

               (2) The shareholders of the Company;

               (3) Legal counsel selected by the Indemnitee, and reasonably approved by the Board, which
counsel shall make such determination in a written opinion.

               (4) A panel of three arbitrators, one of whom is selected by the Company, another of whom is
selected by the Indemnitee and the last of whom is selected by the first two arbitrators so
selected.

          (d) As soon as practicable, and in no event later than 30 days after written notice of the
Indemnitee’s choice of forum pursuant to Section 7(c) above, the Company and Indemnitee shall
each submit to the selected forum such information as they believe is appropriate for the forum
to consider.

          (e) Notwithstanding a determination by any forum listed in Section 7(c) hereof that
Indemnitee is not entitled to indemnification with respect to a specific proceeding, the
Indemnitee shall have the right to apply to the Court of Chancery of Delaware, the court in which
that proceeding is or was pending or any other court of competent jurisdiction, for the purpose
of enforcing the Indemnitee’s right to indemnification pursuant to the Agreement.

          (f) The Company shall indemnify the Indemnitee against all expenses incurred by the
Indemnitee in connection with any hearing or proceeding under this Section 7 involving the
Indemnitee and against all expenses incurred by the Indemnitee in connection with any other
proceeding between the Company and the Indemnitee involving the interpretation or enforcement of
the rights of the Indemnitee under this Agreement unless a court of competent

 

 

jurisdiction finds that each of the material claims and/or defenses of the Indemnitee in any such
proceeding was frivolous or not made in good faith.

     8. Exceptions. Any other provision herein to the contrary notwithstanding, the
Company shall not be obligated pursuant to the terms of this Agreement:

          (a) Claims Initiated by Indemnitee. To indemnify or advance expenses to the
Indemnitee with respect to proceedings or claims initiated or brought voluntarily by the
Indemnitee and not by way of defense, except with respect to proceedings brought to establish or
enforce a right to indemnification under this Agreement or any other statute or law or otherwise
as required under Section 145, but such indemnification or advancement of expenses may be
provided by the Company in specific cases if the Board of Directors finds it to be appropriate;
or

          (b) Lack of Good Faith. To indemnify the Indemnitee for any expenses incurred by
the Indemnitee with respect to any proceeding instituted by the Indemnitee to enforce or
interpret this Agreement, if a court of competent jurisdiction determines that each of the
material assertions made by the Indemnitee in such proceeding was not made in good faith or was
frivolous; or

          (c) Unauthorized Settlements. To indemnify the Indemnitee under this Agreement for
any amounts paid in settlement of a proceeding unless the Company consents to such settlement; or

          (d) Claims by the Company for Willful Misconduct. To advance expenses to the
Indemnitee under this Agreement for any expenses incurred by the Indemnitee with respect to any
proceeding or claim brought by the Company against Indemnitee for willful misconduct, unless a
court of competent jurisdiction determines that each of such claims was not made in good faith or
was frivolous.

          (e) l6(b) Actions. To indemnify the Indemnitee on account of any suit in which
judgment is rendered against Indemnitee for an accounting of profits made from the purchase or
sale by Indemnitee of securities of the Company pursuant to the provisions of Section l6(b) of
the Securities and Exchange Act of l934 and amendments thereto or similar provisions of any
federal state or local statutory law; or

          (f) Willful Misconduct. To indemnify the Indemnitee on account of Indemnitee’s
conduct which is finally adjudged to have been knowingly fraudulent or deliberately dishonest, or
to constitute willful misconduct; or

          (g) Unlawful Indemnification. To indemnify the Indemnitee if a final decision by a
court having jurisdiction in the matter shall determine that such indemnification is not lawful.

     9. Non-exclusivity. The provisions for indemnification and advancement of expenses
set forth in this Agreement shall not be deemed exclusive of any other rights which the
Indemnitee may have under any provision of law, the Company’s Certificate of Incorporation or
Bylaws, the vote of the Company’s shareholders or disinterested directors, other agreements, or
otherwise, both as to action in his official capacity and to action in another capacity while
occupying his position as an agent of the Company, and the Indemnitee’s rights hereunder shall

 

 

continue after the Indemnitee has ceased acting as an agent of the Company and shall inure to the
benefit of the heirs, executors and administrators of the Indemnitee.

     10. Interpretation of Agreement. It is understood that the parties hereto intend
this Agreement to be interpreted and enforced so as to provide indemnification to the Indemnitee
to the fullest extent now or hereafter permitted by law.

     11. Severability. If any provision or provisions of this Agreement shall be held to
be invalid, illegal or unenforceable for any reason whatsoever, (i) the validity, legality and
enforceability of the remaining provisions of the Agreement (including, without limitation, all
portions of any paragraphs of this Agreement containing any such provision held to be invalid,
illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) shall not in
any way be affected or impaired thereby, and (ii) to the fullest extent possible, the provisions
of this Agreement (including, without limitation, all portions of any paragraphs of this
Agreement containing any such provision held to be invalid, illegal or unenforceable, that are
not themselves invalid, illegal or unenforceable) shall be construed so as to give effect to the
intent manifested by the provision held invalid, illegal or unenforceable and to give effect to
Section 10 hereof.

     12. Modification and Waiver. No supplement, modification or amendment of this
Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver
of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any
other provision hereof (whether or not similar) nor shall such waiver constitute a continuing
waiver.

     13. Successors and Assigns. The terms of this Agreement shall bind, and shall inure
to the benefit of, the successors and assigns of the parties hereto.

     14. Notice. All notices, requests, demands and other communications under this
Agreement shall be in writing and shall be deemed duly given (i) if delivered by hand and
receipted for by the party addressee or (ii) if mailed by certified or registered mail with
postage prepaid, on the third business day after the mailing date. Addresses for notice to
either party are as shown on the signature page of this Agreement, or as subsequently modified by
written notice.

     15. Governing Law. This Agreement shall be governed exclusively by and construed
according to the laws of the State of Delaware, as applied to contracts between Delaware
residents entered into and to be performed entirely with Delaware.

     16. Consent to Jurisdiction. The Company and the Indemnitee each hereby irrevocably
consent to the jurisdiction of the courts of the State of Delaware for all purposes in connection
with any action or proceeding which arises out of or relates to this Agreement.

 

 

     The parties hereto have entered into this Indemnity Agreement effective as of the date first
above written.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	SYMANTEC CORPORATION	 	 
	 	 	Address:	 	20330 Stevens Creek Blvd.	 	 
	 	 	 	 	Cupertino, California 95014	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	By	 	 	 	 
	

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	Its	 	 	 	 
	

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	INDEMNITEE:	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	Address:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

 

Exhibit E

 Symantec Employee Agreement

EMPLOYEE AGREEMENT

This agreement is entered into as of the ______day of __________, 200___by and between
__________(hereinafter “Employee”) and Symantec Corporation, a Delaware
Corporation, having its principal place of business at 20330 Stevens Creek Blvd., Cupertino,
California 95014 (hereinafter “Symantec”).

In consideration of his/her employment by Symantec and of the salary or wages and other benefits
received by him/her during such employment, he/she agrees that the following terms and conditions
shall govern his/her employment relationship with Symantec in regard to inventions and discoveries,
works of authorship, and proprietary information, confidential information and trade secrets:

1. INVENTIONS AND DISCOVERIES

A. Employee agrees that all inventions and discoveries, whether patentable or unpatentable, which
are conceived or made by him/her during his/her employment, either solely or jointly with others,
and which relate in any way to the products or business of Symantec, shall belong to Symantec.
Employee agrees that he/she has been notified and understands that the provisions of this paragraph
do not apply to any Invention that qualifies fully under the provisions of Section 2870 of the
California Labor Code, which states as follows:

     ANY PROVISION IN AN EMPLOYMENT AGREEMENT WHICH PROVIDES THAT AN EMPLOYEE SHALL ASSIGN OR OFFER
TO ASSIGN ANY OF HIS OR HER RIGHTS IN AN INVENTION TO HIS OR HER EMPLOYER SHALL NOT APPLY TO AN
INVENTION THAT THE EMPLOYEE DEVELOPED ENTIRELY ON HIS OR HER OWN TIME WITHOUT USING THE EMPLOYER’S
EQUIPMENT, SUPPLIES, FACILITIES, OR TRADE SECRET INFORMATION EXCEPT FOR THOSE INVENTIONS THAT
EITHER: (1) RELATE AT THE TIME OF CONCEPTION OR REDUCTION TO PRACTICE OF THE INVENTION TO THE
EMPLOYER’S BUSINESS, OR ACTUAL OR DEMONSTRABLY ANTICIPATED RESEARCH OR DEVELOPMENT OF THE
EMPLOYMENT RESEARCH OR DEVELOPMENT OF THE EMPLOYER, OR (2) RESULT FROM ANY WORK PERFORMED BY THE
EMPLOYEE FOR THE EMPLOYER. TO THE EXTENT A PROVISION IN AN EMPLOYMENT PURPORTS TO REQUIRE AN
EMPLOYEE TO ASSIGN AN INVENTION OTHERWISE EXCLUDED FROM BEING REQUIRED TO BE ASSIGNED UNDER
CALIFORNIA LABOR CODE SECTION 1870 (A), THE PROVISION IS AGAINST THE PUBLIC POLICY OF THIS STATE
AND IS UNENFORCEABLE.

B. Employee agrees that he/she will disclose to Symantec in writing any inventions and discoveries
covered by this Agreement. Employee further agrees that, without further remuneration, he/she will
do any and all of the following acts at the request and expense of Symantec:

     (1) execute any assignments to Symantec or its nominee of the entire right, title, and
interest in and to any such inventions and discoveries;

 

 

     (2) execute any other proper instruments or documents necessary or desirable in applying for
and obtaining patents on such inventions and discoveries in the United States and foreign
countries; and

     (3) to cooperate in the prosecution or defense of any claims, lawsuits, or other proceedings
involving such invention and discoveries.

2. WORKS OF AUTHORSHIP

A. Employee agrees that any works of authorship such as writings, computer programs, and the like
which are authored or created by him/her during his/her employment, either solely or jointly with
others, and which relate in any way to the business of Symantec shall belong to Symantec whether
copyrightable or not.

B. Employee further agrees that without further remuneration, he/she will do any and all of the
following acts at the request and expense of Symantec:

     (1) execute any assignments to Symantec or its nominee of the entire right, title, and
interest in and to any such works of authorship;

     (2) execute any other proper instruments or documents necessary or desirable in applying for
and obtaining registration of copyrights on such works of authorship in the United States and
foreign countries, including renewal papers when appropriate; and

     (3) cooperate in the prosecution of defense of any claims, lawsuits, or other proceedings
involving such works of authorship.

C) Employee hereby waives his/her right to enforce any moral or author’s rights which employee may
have in such works of authorship.

3. PROPRIETARY INFORMATION AND TRADE SECRETS

A. Employee agrees that, in performing work for Symantec, he/she will not knowingly use any
patented inventions, trade secrets, source code, object code, marketing plans, contact lists,
copyrights images, employee phone lists or other confidential information or proprietary
information obtained from third parties, including any prior employer or any other organization or
individual. Use of any such third party material without the consent of the owner may cause
Employee to be subject to immediate termination as well as civil and criminal sanctions.

B. Employee agrees that he/she will retain in confidence any and all proprietary information,
confidential information and trade secrets belonging to Symantec, or belonging to a third party and
in the possession of Symantec, which may come into his/her possession during his/her employment.
Employee further agrees that he/she will refrain from doing any of the following acts with respect
to such proprietary information, confidential information and trade secrets, both during his/her
employment and thereafter, without first obtaining the consent in writing of an officer of
Symantec:

     (1) communicate such proprietary information, confidential information or trade secret to any
person outside Symantec or to any other firm, association, or corporation; and

 

 

     (2) use such proprietary information, confidential information or trade secret for the private
benefit of himself/herself or for the benefit of any person outside Symantec or any other firm,
association, or corporation.

C. Employee understands and agrees that the proprietary information and trade secrets of Symantec
shall include, but shall not be limited to, the following:

     (1) inventions, discoveries and computer programs not yet patented or published;

     (2) unpublished technical specifications, data, source codes, object codes, drawings and
descriptions on the proprietary hardware, software, and combined hardware/software products and
processes of Symantec;

     (3) current engineering, research development, and design projects and research and
development data;

     (4) manufacturing processes and methods and apparatus and equipment not generally available or
known to the public;

     (5) business information such as product costs, vendor and customer lists, lists of approved
components and sources, price lists, production schedules, business plans and sales and profit and
loss information not yet announced to or disclosed to the public;

     (6) any other information not generally available to the public.

	D.  	Employee further agrees that all source code printouts, computer programs on storage media,
records, files, memoranda, reports, price lists, customer lists, plans, sketches, documents,
equipment, prototypes, and the like, which relate to the business of Symantec and which he/she
uses, prepares, or comes into contact with during his/her employment shall remain the sole
property of Symantec and shall be returned to Symantec on termination of his/her employment.

4. BUSINESS CONDUCT

	   	Attached to this Agreement as Exhibit A is a copy of Symantec’s Business Conduct
Guidelines. By signing this Agreement you agree that you have read the Business Conduct
Guidelines, and that your compliance with the terms of the Business Conduct Guidelines is a
condition of your employment by Symantec.

5. MISCELLANEOUS

A. Employee understands that this Agreement may not be changed or terminated orally, and no change,
termination or waiver of any of the provisions hereof will be binding unless in writing and signed
by an officer of Symantec.

B. Employee further understands that any agreement previously executed by him/her during his/her
employment with Symantec shall continue in force and effect as to any subject matter to which it
applies, but in all other respects is superseded by this Agreement.

 

 

	C.  	This agreement is not a contract for or guarantee of employment. Employee acknowledges that
employee is an “at will” employee of Symantec and his/her employment may be terminated by
Symantec at any time, with or without cause.

If you have any questions or concerns or are otherwise in doubt about the meaning of this
agreement, either generally or as it applies to a specific situation, please contact your manager
or the legal department for an explanation.

	 	 	 	 	 	 	 
	

	 	 
	 	 	 	 
	

	 	 
	 	

	 	 
	for Symantec Corporation

	 	 	 	Employee	 	 
	 
	 	 	 	 	 	 
	

	 	 
	 	

	 	 
	Title

	 	 	 	Date	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	Date
	 	 	 	 	 	 

 

 

EXHIBIT A

BUSINESS CONDUCT GUIDELINES

1.0 POLICY OBJECTIVE AND IMPLEMENTATION

     The objective of this policy is to ensure that Symantec standards of ethical conduct
have been communicated to all employees of Symantec and that they are understood. It is
vital that each Symantec employee conducts her/himself in a manner that exemplifies the
guiding principles of fairness, reason and honesty.

     The Human Resources organization is responsible for future distribution and
communication of this policy throughout Symantec. Ultimately, each Symantec employee has the
responsibility of implementing this policy with the continuous support from management.

     Symantec recognizes that extraordinary situations may occur which are beyond the scope
of this Policy Statement. These situations may require action in conflict with the Policy
outlined below in order to preserve or protect the life of an employee or family member, or
in order to preserve or protect a significant asset of the Corporation.

     In the event of any such occurrence, the action contemplated will first be approved by
the Senior Vice President of Human Resources of the Corporation or, in her/his absence, by
the Chief Financial Officer of the Corporation.

2.0 LAWFUL STANDARD OF CONDUCT

     It is a policy of Symantec to ensure that its employees are lawfully conducting
themselves in such a manner that is fair, reasonable and honest in relation to Symantec’s
business.

     Symantec employees will act in compliance with all laws and regulations that may be
applicable to the Corporation’s business. Although laws and customs vary from country to
country and standards of ethics may vary in different business environments, the guiding
principles previously mentioned serve as time-tested standards.

     For example, Symantec expects that all employees will comply, directly or indirectly,
with any local laws or regulations as well as the high standards of honesty, fairness and
reason that are applicable to Symantec activities throughout the world.

3.0 GENERAL BUSINESS CONDUCT

     It is also a policy of Symantec to ensure that its employees are conducting themselves
in such a manner that is fair, reasonable and honest in relation to general business
conduct.

     Symantec employees may encounter situations in the course of their general business
practice that call upon them to make an ethical judgment. With the guiding principles in
mind, Symantec supports actions of employees when they are within the following boundaries:

	 	(1)  	Avoid actions which can be perceived as improper or unfair in
dealing with customers, suppliers and any other person or entity including but
not limited to discrimination, unfair treatment of employees/customers and
predatory employment practices. This responsibility is in addition to adhering
to the specifics of this policy.
	 
	 	(2)  	Extending or receiving common courtesies such as business meals,
usually associated with accepted business practice, in dealings with a
customer, supplier or other non-governmental person or entity is acceptable.
However, in any such

 

 

	 	   	dealings, employees of Symantec should not request, accept, offer to give or give
anything of significant value, the express or implied purpose or result of which
is to influence the bona fide business relationships between Symantec and such
person or entity.
	 
	 	(3)  	Extending or receiving occasional gifts having a maximum retail
value of $250 as a gesture of goodwill is acceptable. Gifts in the form of cash
payments are not allowed, regardless of amount. Gifts in the form of tickets to
sporting events and other forms of entertainment are not subject to the $250
limit. All entertainment with a value in excess of $250 requires notification
to the Management Committee member in charge of the relevant operating unit.

4.0 CONFLICTS OF INTEREST

     A situation in which the personal interests of the employee and the interests of the
company are in opposition will not be tolerated. This situation is both detrimental to the
employee and the Corporation.

     A conflict of interest exists if the perceived or actual interests of Symantec and the
employee are at odds. Please note that appearances that support the perception that a
conflict exists, whether or not such conflict actually exists, will be treated with the same
level of seriousness.

     Following are common instances in which there are conflicts of interest:

	 	(1)  	Symantec employees simultaneously working for actual or
prospective competitors, suppliers and/or customers.
	 
	 	(2)  	Pursuing an outside activity which impairs work efficiency,
judgment and/or impartiality.
	 
	 	(3)  	The possession of a financial interest in a competing
corporation, supplier and/or customer. However, the possession of insignificant
financial holdings of a publicly traded company is acceptable. A second method
to gauge the financial holdings is that the employee must be able to sell the
holding upon notification, at market price, without concern for any financial
loss.
	 
	 	(4)  	Investment or speculation in equipment, real estate, and/or
materials bought or sold by Symantec or which is under consideration for
purchase.
	 
	 	(5)  	Intentional misrepresentation via either commission or omission;
both internally and externally. For example, misconstruing or omitting facts to
gain customer, vendor, or employee acceptance of a deal or policy where it would
not otherwise be given.
	 
	 	(6)  	Revealing confidential information to outsiders or misusing
confidential information. Unauthorized divulgence or use of information is a
violation of this policy whether or not for personal gain and whether or not
harm to the Corporation is intended.

 

 

	 	(7)  	The employment of relatives*: a) in the same department, unless
they are reporting to different first- line managers. b) Where one is managing
the other or in a position to influence the career of the other if they are less
than three reporting levels apart. No employee will be involved in a relative’s
performance review, salary determination or career development planning. c)
Where one employee is in a position considered “sensitive” or “confidential”,
such as handling salary or performance information (i.e. Human Resources, IT or
Payroll).
	 
	 	   	*For the purpose of this policy, a relative is defined as a spouse, domestic
partner, and child or sibling by blood or marriage.
	 
	 	(8)  	Borrowing money, goods or services from the Corporation or
lending to employees, customers or suppliers.
	 
	 	(9)  	Improperly using or disclosing to Symantec any proprietary
information or trade secrets of any former or concurrent employer or other
person or entity with whom obligations of confidentiality exist.
	 
	 	(10)  	Unlawfully discussing prices, costs, customers, sales or markets
with competing companies or their employees.

     If you think an activity you’re about to pursue might be considered a conflict of
interest, you must notify the Corporation and obtain prior approval by submitting a brief
report detailing your proposed actions to the Senior Vice President of Human Resources.

     If you are, or have already, participated in something that might be considered a
conflict of interest, you must still submit a report as outlined in the preceding paragraph.

5.0 PERSONAL USE OF SYMANTEC PROPERTY

     Personal gain is action taken for private benefit. The use of Symantec facilities and
equipment for personal gain is strictly prohibited.

     Office supplies, copied software, engineering material, office machine and/or computers
are not to be used for personal gain. Personal gain shall be considered the use of
facilities for significant personal gain and/or personal profit.

     Use of Symantec information at home will only be on company-owned computers as this
information is the exclusive property of the Corporation.

     It is a violation of Symantec policy to operate a private business from company
grounds, on company time or with company materials. However, the insignificant use of
facilities for non-profit functions is acceptable.

6.0 ACCURACY AND COMPLETENESS OF THE CORPORATION’S BOOKS AND RECORDS

     Symantec employees will exercise fair, reasonable and honest actions in dealing with
the Corporation’s books and records. Records include but are not limited to
financial-related information, IT account information and IT log information.

     The following guidelines will be adhered to:

	 	(1)  	False, intentionally improper or misleading entries will not be
made in the books and records of the Corporation.

 

 

	 	(2)  	Complete and accurate information is to be given in response to
inquiries from the Corporation’s auditors, both internal and external.
	 
	 	(3)  	Undisclosed or unrecorded funds or assets of the Corporation will
not be established or maintained for any purpose except when obsolete or
surplus.
	 
	 	(4)  	All payments made by or on behalf of the Corporation for any
purpose will be fully defined and are to be made only for the purpose described
in the documents and records of the Corporation supporting the payment.

     All documents reflecting an element of a transaction with a customer (such as “side
letters” including those made by email) must be submitted to the Revenue department together
with the related customer order.

7.0 RELATIONS WITH GOVERNMENT AUTHORITIES

     In addition to the other Standards of Conduct set forth in this Policy Statement, no
employee of Symantec will directly or indirectly offer to provide any gift, gratuity or
entertainment to any employee or representative of any government authority, regardless of
amount, in violation of Standards of Conduct put forth by such authority.

     Employees will illustrate fair, reasonable and honest conduct in dealing with foreign
governments. Symantec employees will not directly or indirectly offer or provide any gift or
gratuity to any employee or representative of any foreign government. Notwithstanding the
foregoing, Symantec recognizes that in certain foreign countries, some minor government
officials will delay or fail to perform their normal functions or services unless payments
are made to them. In those situations where it is necessary to expedite a routine
government action which the Corporation is otherwise entitled to have performed, payment may
be made provided they:

     (1) Are not made to policy-making government personnel.

     (2) Are consistent with local custom and standards.

     (3) Receive prior approval, in writing, from the Chief Financial
Officer.

8.0 RESPONSIBILITIES AND REPORTING

     Symantec supports this Policy and also supports employees in its implementation. Any
employee having information, knowledge or suspicion of any actual or contemplated
transaction which is or appears to be in violation of this Policy Statement, should promptly
report the matter to the Senior Vice President of Human Resources. In the event any such
transaction involves an Officer of the Corporation, the matter should be reported directly
to the Board of Directors.

     Employees may periodically be required to certify compliance with this Policy
Statement.

     Failure to comply with this Policy Statement will result in disciplinary action that
may include reprimand, suspension, demotion or dismissal. Disciplinary measures will also
apply to

 

 

senior executives who condone such illegal or unethical conduct by those reporting to
them and do not take immediate measures to correct the same.

 

 

SYMANTEC

BUSINESS CONDUCT GUIDELINES

I have read and understand Symantec’s Business Conduct Guidelines. I will abide by the statement
in all respects and realize that Symantec expects its employees to conduct themselves in a manner
that is fair, reasonable and honest in relation to the Corporation’s business.

	 	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	

	 	

	 	 
	Employee Signature

	 	Date	 	 
	 
	 	 	 	 
	

	 	 	 	 
	Print Name
	 	 	 	 

 

 

APPENDIX I

SPECIAL TAX PAYMENT

GROSS UP PAYMENT

     The following provisions are hereby incorporated into, and are hereby made a part of, that
certain Employment Agreement by and between Symantec Corporation (the “Company”) and
[       ] (“Executive”) dated December 15, 2004 (the “Employment Agreement”),
and such provisions shall be effective immediately. All capitalized terms in this Appendix, to the
extent not otherwise defined herein, shall have the meanings assigned to them in the Employment
Agreement.

     1. Special Tax Gross-Up. In the event that (i) any payment made by Veritas to
Executive, whether pursuant to Executive’s Change of Control Agreement dated March 15, 2004 or
otherwise, prior to the Closing Date or any payment to Executive made by Symantec, whether
pursuant to the Employment Agreement or otherwise, following the Closing Date (each a “Payment”) is
deemed, in the opinion of the Independent Auditors or by the Internal Revenue Service, to
constitute a parachute payment under Section 280(G) of the Code as a result of the Acquisition and
(ii) it is determined that the aggregate Present Value (measured as of the Closing Date) of the
Parachute Payment attributable to such Payment(s) exceeds one hundred ten percent (110%) of the
Permissible Parachute Amount, then Executive shall be entitled to receive from the Company a
special tax payment (the “Gross-Up Payment”) in a dollar amount determined pursuant to the
following formula:

X
= Y ÷ [1 - (A + B + C)], where

X is the total dollar payment of the Gross-up Payment.

Y is the total excise tax, together with all applicable interest and
penalties (collectively, the “Excise Tax”), imposed on the Executive
pursuant to Code Section 4999 (or any successor provision) with
respect to the excess parachute payment attributable to the
Payment(s).

A is the Excise Tax rate in effect under Code Section 4999 for such
excess parachute payment,

B is the highest combined marginal federal income and applicable
state income tax rate in effect for the Executive for the calendar
year in which the Gross-Up Payment is made, determined after taking
into account (i) the deductibility of state income taxes against
federal income taxes to the extent actually allowable for that
calendar year and (ii) any increase in effective tax rate due to the
loss of itemized deductions by reason of applicable phase-out
limitations, and

C is the applicable Hospital Insurance (Medicare) Tax Rate in effect
for the Executive for the calendar year in which the Gross-Up
Payment is made.

     2. Benefit Limit.

          A. Should it be determined that the aggregate Present Value (measured as of the Closing Date)
of the Parachute Payment attributable to the Payment(s) does not exceed one hundred ten percent
(110%) of the Permissible Parachute Amount, then no Gross-Up Payment shall be made to Executive
under Paragraph 1 of this Appendix. Instead, the limitations set forth in this Paragraph 2 shall
apply. Accordingly, the amount of the Payments otherwise due the Executive shall be reduced to the

 

 

extent necessary to assure that the aggregate Present Value of the Payment(s) does not exceed
the greater of the following dollar amounts (the “Benefit Limit”)

               a. the Permissible Parachute Amount, or

               b. the greatest after-tax amount payable to the Executive after taking into account any excise
tax imposed under Internal Revenue Code Section 4999 on the Payments.

          To effect such Benefit Limit, the following reductions shall be made to the Payments to which
the Executive is otherwise entitled, to the extent necessary to assure that such Benefit Limit is
not exceeded: first, any cash payments to which the Executive would otherwise be entitled shall be
reduced, then, any non-cash payments to which Executive would otherwise be entitled shall be
reduced in a manner determined by the Executive and acceptable to the Company.

     3. Determination Procedures. All determinations required to be made under this
Appendix shall be made by the Independent Auditors in accordance with the following procedures:

          (a) In determining the total dollar amount of the Parachute Payment attributable to the
Payments, the Independent Auditors shall make a reasonable determination of the value to be
assigned to the restrictive covenants which will be in effect for the Executive pursuant to the
Employment Agreement, and the amount of his potential Parachute Payments shall reduced by the value
of those restrictive covenants.

          (b) Within ten (10) business days after each receipt of written notice from the Company or the
Executive that a Parachute Payment has or is to be made, then the Independent Auditors shall
provide both the Executive and the Company with a written determination of the Parachute Payment
attributable to that Payment, together with detailed supporting calculations with respect to the
Gross-Up Payment to which the Executive is entitled hereunder by reason of those various Parachute
Payments. The Company shall pay the resulting Gross-Up Payment to the Executive within three (3)
business days after receipt of such determination or (if later) contemporaneously with the Payment
triggering such Gross-Up Payment.

          (c) In the event the Treasury Regulations under Code Section 280G (or applicable judicial
decisions) specifically address the status of any Payment or the method of valuation therefor, the
characterization afforded to such payment by the Regulations (or such decisions) shall, together
with the applicable valuation methodology, be controlling. All other determinations by the
Independent Auditors shall be made on the basis of “substantial authority” (within the meaning of
Section 6662 of the Code).

          (d) The Company and the Executive shall each provide the Independent Auditors with access to
and copies of any books, records and documents in their possession which may be reasonably
requested by the Independent Auditors and shall otherwise cooperate with the Independent Auditors
in connection with the preparation and issuance of the determinations contemplated by this
Appendix.

          (e) All fees and expenses of the Independent Auditors and the appraisers shall be borne solely
by the Company, and to the extent those fees or expenses are treated as a Parachute Payment, they
shall be taken into account in the calculation of the Gross-Up Payment to which the Executive is
entitled under this Appendix.

     4. Additional Claims. The Executive shall provide written notification to the Company
of any claim made by the Internal Revenue Service which would, if successful, require the payment
by the Company of an additional Gross-Up Payment. Such notification shall be given as soon as
practicable after the Executive is informed in writing of such claim and shall apprise the Company
of the

 

 

nature of such claim and the date on which such claim is requested to be paid. The Executive
shall not pay such claim prior to the expiration of the thirty (30)-day period following the date
on which such notice is given to the Company (or such shorter period ending on the date that any
payment of taxes, interest and/or penalties with respect to such claim is due). Prior to the
expiration of such thirty (30)-day or shorter period, the Company shall ether (i) make the
additional Gross-Up Payment to the Executive attributable to the Internal Revenue Service claim or
(ii) provide written notice to the Executive that the Company shall contest the claim on the
Executive’s behalf. In the event, the Company provides the Executive with such written notice,
Executive shall:

          (A) provide the Company with any information reasonably requested by the Company relating to
such claim;

          (B) take such action in connection with contesting such claim as the Company may reasonably
request in writing from time to time, including (without limitation) accepting legal representation
with respect to such claim by an attorney reasonably selected by the Company and reasonably
satisfactory to the Executive, with the fees and expenses of such attorney to be the sole
responsibility of the Company without any tax implications to the Executive in accordance with the
same tax indemnity/gross-up arrangement as in effect under subparagraph (D) below;

          (C) cooperate with the Company in good faith in order to effectively contest such claim; and

          (D) permit the Company to participate in any proceedings relating to such claim; provided,
however, that the Company shall bear and pay directly all additional Excise Taxes imposed upon the
Executive and all costs, legal fees and other expenses (including additional interest and
penalties) incurred in connection with such contest and shall indemnify the Executive for and hold
him harmless from, on an after-tax basis, any additional Excise Tax (including interest and
penalties) imposed upon the Executive and any Excise Tax or income or employment tax (including
interest and penalties) attributable to the Company’s payment of that additional Excise Tax on the
Executive’s behalf or imposed as a result of such representation and payment of all related costs,
legal fees and expenses. The amounts owed to the Executive by reason of the foregoing shall be
paid to him or on his behalf as they become due and payable. Without limiting the foregoing
provisions of this subparagraph (D), the Company shall control all proceedings taken in connection
with such contest and, at its sole option, may pursue or forgo any and all administrative appeals,
proceedings, hearings and conferences with the taxing authority in respect of such claim and may,
at the Company’s sole option, either direct the Executive to pay the tax claimed and sue for a
refund or contest the claim in any permissible manner, and the Executive shall prosecute such
contest to a determination before any administrative tribunal, in a court of initial jurisdiction
and in one or more appellate courts, as the Company shall determine; provided, however, that should
the Company direct the Executive to pay such claim and sue for a refund, the Company shall advance
the amount of such payment to the Executive, on an interest-free basis, and shall indemnify the
Executive for and hold him harmless from, on an after-tax basis, any Excise Tax or income or
employment tax (including interest or penalties) imposed with respect to such advance or with
respect to any imputed income with respect to such advance or any income resulting from the
Company’s forgiveness of such advance; provided, further, that the Company’s control of the contest
shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder, and
the Executive shall be entitled to settle or contest, as the case may be, any other issue raised by
the Internal Revenue Service or any other taxing authority.

     5. Definitions. For purposes of this Appendix, the following definitions shall be in effect:

          Average Compensation means the average of the Executive’s W-2 wages from Veritas for the five
(5) calendar years or fewer number of calendar years completed immediately prior to the calendar
year in which the Change in Control is effected.

 

 

          Code means the Internal Revenue Code of 1986, as amended.

          Common Stock means the Company’s common stock.

          Independent Auditors means a nationally-recognized public accounting firm mutually acceptable
to both the Company and the Executive.

          Parachute Payment means any payment or benefit in the nature of compensation which is made to
Executive in connection with the Acquisition and which is deemed to constitute a parachute payment
under Code Section 280G(b)(2) and the Treasury Regulations issued thereunder.

          Permissible Parachute Amount means a dollar amount equal to 2.99 times the Executive’s Average
Compensation.

          Present Value means the value, determined as of the Closing Date or other relevant date under
applicable Treasury Regulations, of any payment in the nature of compensation to which the
Executive becomes entitled in connection with the Acquisition or his subsequent termination,
including (without limitation) the Parachute Payment attributable to any of the Payments. The
Present Value of each such payment shall be determined in accordance with the provisions of Code
Section 280G(d)(4), utilizing a discount rate equal to one hundred twenty percent (120%) of the
applicable Federal rate in effect at the time of such determination, compounded semi-annually to
the effective date of the Acquisition.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}]]