Document:

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                                                                   EXHIBIT 10.05

                          VERITAS SOFTWARE CORPORATION

                        1993 DIRECTORS STOCK OPTION PLAN

          AS ADOPTED OCTOBER 1, 1993, AMENDED JANUARY 26, 1994, AMENDED
       OCTOBER 19, 1994, AMENDED APRIL 20, 1995, AMENDED APRIL 17, 1996,
          AMENDED JANUARY 12, 1997, AMENDED APRIL 15, 1999 AND AMENDED
                  OCTOBER 14, 1999 (EFFECTIVE JANUARY 1, 1999)

     1. PURPOSE. This Stock Option Plan (this "Plan") is established to provide
equity incentives for nonemployee members of the Board of Directors of VERITAS
Software Corporation, a corporation organized under the laws of the State of
Delaware, any successor corporation thereto and any corporation that assumes the
Plan (the "Company") who are described in Section 6.1 below, by granting such
persons options to purchase shares of stock of the Company.

     2. ADOPTION AND SHAREHOLDER APPROVAL. This Plan shall become effective on
the date that it is adopted by the Board of Directors (the "Board") of the
Company. This Plan shall be approved by the affirmative vote or written consent
of the holders of a majority of the outstanding shares of Common Stock of the
Company, within twelve months after the date this Plan is adopted by the Board.
Upon the effective date of this Plan, options under this Plan ("Options") may be
granted provided that, in the event that shareholder approval is not obtained
within the time period provided herein, this Plan, and all Options granted
hereunder, shall terminate. No Option that is issued as a result of any increase
in the number of shares authorized to be issued under this Plan shall be
exercised prior to the time such increase has been approved by the shareholders
of the Company and all such Options granted pursuant to such increase shall
similarly terminate if such shareholder approval is not obtained.

     3. TYPES OF OPTIONS AND SHARES. Options granted under this Plan shall be
nonqualified stock options ("NQSOs"). The shares of stock that may be purchased
upon exercise of Options granted under this Plan (the "Shares") are shares of
the Common Stock of the Company or any successor security.

     4. NUMBER OF SHARES. The maximum number of Shares that may be issued
pursuant to Options granted under this Plan is 562,500 Shares, subject to
adjustment as provided in this Plan. If any Option is terminated for any reason
without being exercised in whole or in part, the Shares thereby released from
such Option shall be available for purchase under other Options subsequently
granted under this Plan. At all times during the term of this Plan, the Company
shall reserve and keep available such number of Shares as shall be required to
satisfy the requirements of outstanding Options under this Plan. The numbers of
Shares represented in this Plan are stated as of January 1, 1999, and therefore
do not reflect the two-for-one stock split announced by the Board on June 7,
1999 and paid as a stock dividend on July 8, 1999 to stockholders of record on
June 18, 1999.

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     5. ADMINISTRATION. This Plan shall be administered by the Board or by a
committee of not less than two members of the Board appointed to administer this
Plan (the "Committee"). As used in this Plan, references to the Committee shall
mean either such Committee or the Board if no committee has been established.
The interpretation by the Committee of any of the provisions of this Plan or any
Option granted under this Plan shall be final and binding upon the Company and
all persons having an interest in any Option or any Shares purchased pursuant to
an Option.

     6. ELIGIBILITY AND AWARD FORMULA.

        6.1 ELIGIBILITY. Options may be granted only to directors of the Company
who are not employees of the Company or any Parent, Subsidiary or Affiliate of
the Company, as those terms are defined in Section 17 below (each an
"Optionee"). Directors who are consultants and independent contractors of the
Company or of any Parent, Subsidiary or Affiliate of the Company are eligible to
participate in the Directors Plan.

        6.2 INITIAL GRANT. Each Optionee who is first elected or reelected to
the Board after the effective date of the Company's registration statement (the
"Registration Statement") filed with, and declared effective by, the Securities
and Exchange Commission (the "SEC") under the Securities Act of 1933, as amended
(the "1933 Securities Act") on or after January 1, 1999 will automatically be
granted an option for 25,000 Shares on the later of (i) the date such Optionee
is first elected or reelected to the Board or (ii) the date his or her most
recent prior option becomes fully vested as to all Shares or terminates (whether
such option was granted under this Plan, the Company's 1993 Equity Incentive
Plan or otherwise) (the "Initial Grant"). An Optionee who has received an
Initial Grant or a Succeeding Grant prior to any assumption of this Plan shall
not be granted an Initial Grant. The Board will have the discretion to increase
the number of Shares subject to the Initial Grant to 54,000 Shares without
shareholder approval.

        6.3 SUCCEEDING GRANTS. On the anniversary date of his or her most recent
prior option (whether such option was granted under this Plan, the Company's
1993 Equity Incentive Plan or otherwise) Optionee will automatically be granted
an Option for 6,500 Shares, provided that Optionee is still a member of the
Board (a "Succeeding Grant"). Notwithstanding the foregoing, an Optionee shall
not receive a Succeeding Grant earlier than the first anniversary of his or her
Initial Grant. The Board will have the discretion to increase the number of
Shares subject to a Succeeding Grant to 13,500 Shares without shareholder
approval.

        6.4 MAXIMUM SHARES. The maximum number of Shares that may be issued to
any one director under this Plan is 108,000. No grant will be made, however, if
such grant will cause the number of Shares issued or subject to outstanding
Options under this Plan to exceed the number specified in Section 4 above.

     7. TERMS AND CONDITIONS OF OPTIONS. Subject to the following and to Section
6 above:

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        7.1 FORM OF OPTION GRANT. Each Option granted under this Plan shall be
evidenced by a written Stock Option Grant ("Grant") in such form (which need not
be the same for each Optionee) as the Committee shall from time to time approve,
which Grant shall comply with and be subject to the terms and conditions of this
Plan.

        7.2 VESTING. The date an Optionee is first elected or reelected to the
Board for the first time, as to the Initial Grant, and the date a Succeeding
Grant is granted, is referred to in this Plan as the "Start Date" for such
Option. Each Initial Grant granted prior to January 1, 1999 will vest as to
3,375 Shares subject to it on the last day of each calendar quarter (not to
exceed 13,500 Shares per year); provided that Optionee attended at least one
Board meeting during such quarter and provided further that the Board meeting
Optionee attended occurred after the date of grant. Each Initial Grant granted
on or after January 1, 1999 will vest as to 521 Shares subject to it on the last
day of each calendar month (not to exceed 6,250 Shares per year). Each
Succeeding Grant granted prior to January 1, 1999 will vest as to 844 Shares
subject to it on the last day of each calendar quarter (not to exceed 3,375
Shares per year); provided that Optionee attended at least one Board meeting
during such quarter and provided further that the Board meeting Optionee
attended occurred after the date of grant. Each Succeeding Grant granted on or
after January 1, 1999 will vest as to 135 Shares per calendar month (not to
exceed 1,625 Shares per year). Initial Grants granted on or after April 17, 1996
and Succeeding Grants shall be exercisable immediately upon grant for a period
of ten years. Exercised unvested Shares shall be subject to a right of
repurchase in the Company at the original purchase price that lapses as such
Shares vest. Each Option will fully vest as to any Shares that remain unvested
on the day immediately preceding the tenth anniversary of the Start Date of such
Option. Each outstanding Option shall be exercisable and vest in accordance with
the Grant by which it was originally granted.

        7.3 EXERCISE PRICE. The exercise price of an Option shall be the Fair
Market Value (as defined in Section 17.4) of the Shares, at the time that the
Option is granted.

        7.4 TERMINATION OF OPTION. Except as provided below in this Section,
this Option shall terminate and may not be exercised if Optionee ceases to be a
member of the Board or a consultant of the Company. The date on which Optionee
ceases to be a member of the Board or a consultant of the Company shall be
referred to as the "Termination Date."

           (a) Termination Generally. If Optionee ceases to be a member of the
Board or a consultant of the Company for any reason except death or disability,
this Option, to the extent (and only to the extent) that it would have been
exercisable by Optionee on the Termination Date, may be exercised by Optionee
within six (6) months after the Termination Date, but in no event later than the
Expiration Date.

           (b) Death or Disability. If Optionee ceases to be a member of the
Board or a consultant of the Company because of the death of Optionee or the
disability of Optionee within the meaning of Section 22(e)(3) of the Internal
Revenue Code of 1986, as amended, (the "Code") this Option, to the extent (and
only to the extent) that it would

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have been exercisable by Optionee on the Termination Date, may be exercised by
Optionee (or Optionee's legal representative) within twelve (12) months after
the Termination Date, but in no event later than the Expiration Date.

     8. EXERCISE OF OPTIONS.

        8.1 NOTICE. Options may be exercised only by delivery to the Company of
an exercise agreement in a form approved by the Committee, stating the number of
Shares being purchased, the restrictions imposed on the Shares and such
representations and agreements regarding the Optionee's investment intent and
access to information as may be required by the Company to comply with
applicable securities laws, together with payment in full of the exercise price
for the number of Shares being purchased.

        8.2 PAYMENT. Payment for the Shares may be made (a) in cash or by check;
(b) by surrender of shares of Common Stock of the Company that have been owned
by Optionee for more than six (6) months (and which have been paid for within
the meaning of SEC Rule 144 and, if such shares were purchased from the Company
by use of a promissory note, such note has been fully paid with respect to such
shares) or were obtained by the Optionee in the open public market, having a
Fair Market Value equal to the exercise price of the Option; (c) by waiver of
compensation due or accrued to Optionee for services rendered; (d) provided that
a public market for the Company's stock exists, through a "same day sale"
commitment from Optionee and a broker-dealer that is a member of the National
Association of Securities Dealers (a "NASD Dealer") whereby Optionee irrevocably
elects to exercise the Option and to sell a portion of the Shares so purchased
to pay for the exercise price and whereby the NASD Dealer irrevocably commits
upon receipt of such Shares to forward the exercise price directly to the
Company; (e) provided that a public market for the Company's stock exists,
through a "margin" commitment from Optionee and a NASD Dealer whereby Optionee
irrevocably elects to exercise the Option and to pledge the Shares so purchased
to the NASD Dealer in a margin account as security for a loan from the NASD
Dealer in the amount of the exercise price, and whereby the NASD Dealer
irrevocably commits upon receipt of such Shares to forward the exercise price
directly to the Company; or (f) by any combination of the foregoing.

        8.3 WITHHOLDING TAXES. Prior to issuance of the Shares upon exercise of
an Option, Optionee shall pay or make adequate provision for any federal or
state withholding obligations of the Company, if applicable.

        8.4 LIMITATIONS ON EXERCISE. Notwithstanding the exercise periods set
forth in the Grant, exercise of an Option shall always be subject to the
following limitations:

           (a) An Option shall not be exercisable unless such exercise is in
compliance with the 1933 Securities Act and all applicable state securities
laws, as they are in effect on the date of exercise.

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           (b) The Committee may specify a reasonable minimum number of Shares
that may be purchased on any exercise of an Option, provided that such minimum
number will not prevent Optionee from exercising the full number of Shares as to
which the Option is then exercisable.

     9. NONTRANSFERABILITY OF OPTIONS. During the lifetime of Optionee, an
Option shall be exercisable only by Optionee or by Optionee's guardian or legal
representative, unless otherwise permitted by the Committee. No Option may be
sold, pledged, assigned, hypothecated, transferred or disposed of in any manner
other than by will or by the laws of descent and distribution.

     10. PRIVILEGES OF STOCK OWNERSHIP. No Optionee shall have any of the rights
of a shareholder with respect to any Shares subject to an Option until the
Option has been validly exercised. No adjustment shall be made for dividends or
distributions or other rights for which the record date is prior to the date of
exercise, except as provided in this Plan. The Company shall provide to each
Optionee a copy of the annual financial statements of the Company, at such time
after the close of each fiscal year of the Company as they are released by the
Company to its shareholders.

     11. ADJUSTMENT OF OPTION SHARES. In the event that the number of
outstanding shares of Common Stock of the Company is changed by a stock
dividend, stock split, reverse stock split, combination, reclassification or
similar change in the capital structure of the Company without consideration,
the number of Shares available under this Plan, the maximum number of Shares
that can be granted to a director and the number of Shares subject to
outstanding Options, the number of Shares vesting per quarter or per month and
the exercise price per Share of such Options shall be proportionately adjusted,
subject to any required action by the Board or shareholders of the Company and
compliance with applicable securities laws; provided, however, that no
certificate or scrip representing fractional shares shall be issued upon
exercise of any Option and any resulting fractions of a Share shall be ignored;
provided further, however, that in the event that the number of shares of Common
Stock of the Company is changed by a stock dividend or a stock split without
consideration, the Board will have the discretion not to proportionately adjust
the number of Shares subject to each Initial Grant and the number of Shares
subject to each Succeeding Grant, and the number of Shares to vest per month
subject to such Initial Grants and Succeeding Grants.

     12. NO OBLIGATION TO EMPLOY. Nothing in this Plan or any Option granted
under this Plan shall confer on any Optionee any right to continue as a director
or a consultant of the Company.

     13. COMPLIANCE WITH LAWS. The grant of Options and the issuance of Shares
upon exercise of any Options shall be subject to and conditioned upon compliance
with all applicable requirements of law, including without limitation compliance
with the 1933 Securities Act, any required approval by the Commissioner of
Corporations of the State of California, compliance with all other applicable
state securities laws and compliance with the requirements of any stock exchange
or national market system on which the

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Shares may be listed. The Company shall be under no obligation to register the
Shares with the Securities and Exchange Commission or to effect compliance with
the registration or qualification requirement of any state securities laws,
stock exchange or national market system.

     14. ACCELERATION OF OPTIONS BY SUCCESSORS. In the event of a dissolution or
liquidation of the Company, a merger in which the Company is not the surviving
corporation, the sale of substantially all of the assets of the Company, or any
other transaction which qualifies as a "corporate transaction" under Section 424
of the Code wherein the shareholders of the Company give up all of their equity
interest in the Company (except for the acquisition of all or substantially all
of the outstanding shares of the Company) the vesting of all options granted
pursuant to the Plan will accelerate and the options will become exercisable in
full prior to the consummation of such event at such times and on such
conditions as the Committee determines.

     15. AMENDMENT OR TERMINATION OF PLAN. The Committee may at any time
terminate or amend this Plan but not the terms of any outstanding option;
provided, however, that the Committee shall not, without the approval of the
shareholders of the Company, increase the total number of Shares available under
this Plan (except by operation of the provisions of Sections 4 and 11 above) or
change the class of persons eligible to receive Options. In any case, no
amendment of this Plan may adversely affect any then outstanding Options or any
unexercised portions thereof without the written consent of Optionee.

     16. TERM OF PLAN. Options may be granted pursuant to this Plan from time to
time within a period of ten (10) years from the date this Plan is adopted by the
Board of Directors.

     17. CERTAIN DEFINITIONS. As used in this Plan, the following terms shall
have the following meanings:

        17.1 "Parent" means any corporation (other than the Company) in an
unbroken chain of corporations ending with the Company if, at the time of the
granting of the Option, each of such corporations other than the Company owns
stock possessing 50% or more of the total combined voting power of all classes
of stock in one of the other corporations in such chain.

        17.2 "Subsidiary" means any corporation (other than the Company) in an
unbroken chain of corporations beginning with the Company if, at the time of
granting of the Option, each of the corporations other than the last corporation
in the unbroken chain owns stock possessing 50% or more of the total combined
voting power of all classes of stock in one of the other corporations in such
chain.

        17.3 "Affiliate" means any corporation that directly, or indirectly
through one or more intermediaries, controls or is controlled by, or is under
common control with, another corporation, where "control" (including the terms
"controlled by" and "under

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common control with") means the possession, direct or indirect, of the power to
cause the direction of the management and policies of the corporation, whether
through the ownership of voting securities, by contract or otherwise.

        17.4 "Fair Market Value" shall mean the fair market value of the Shares
as determined by the Committee from time to time in good faith. If a public
market exists for the Shares, the Fair Market Value shall be the average of the
last reported bid and asked prices for the common stock of the Company on the
last trading day prior to the date of determination, or, in the event the common
stock of the Company is listed on the Nasdaq National Market, the Fair Market
Value shall be the average of the high and low prices of the common stock on the
option grant date as quoted on the Nasdaq National Market and reported in The
Wall Street Journal.

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                                                                   INITIAL GRANT

                          VERITAS SOFTWARE CORPORATION

                    DIRECTORS NONQUALIFIED STOCK OPTION GRANT

Optionee:
                                            ------------------------------------
Address:
                                            ------------------------------------

Total Shares Subject to Option:                             25,000
                                            ------------------------------------

Exercise Price Per Share:
                                            ------------------------------------

Date of Grant:
                                            ------------------------------------

Expiration Date:
                                            ------------------------------------

        1. GRANT OF OPTION. VERITAS SOFTWARE CORPORATION, a Delaware corporation
(the "Company"), has granted to the optionee named above ("Optionee") an option
(this "Option") to purchase the total number of shares of Common Stock of the
Company set forth above (the "Shares") at the exercise price per share set forth
above (the "Exercise Price"), subject to all of the terms and conditions of this
Grant and the Company's 1993 Directors Stock Option Plan, as amended through
October 14, 1999 (the "Plan"). Unless otherwise defined herein, capitalized
terms used herein shall have the meanings ascribed to them in the Plan.

        2. EXERCISE PERIOD OF OPTION. Subject to the terms and conditions of the
Plan and this Grant, this Option shall be exercisable immediately upon the Date
of Grant and thereafter, subject to earlier termination in accordance with
Section 4 below. This Option shall be exercisable until the Expiration Date,
subject to earlier termination in accordance with Section 4 below. Shares that
are exercised but that have not yet vested in accordance with this Section 2
("Unvested Shares"), shall be subject to a right of repurchase in the Company at
the Exercise Price that lapses as such exercised Shares vest. Subject to the
terms and conditions of the Plan and this Grant, this Option will vest as to 521
Shares subject to it on the last day of each calendar month (not to exceed 6,250
Shares per year). This Option shall fully vest as to any Shares that remain
unvested on the day immediately preceding the tenth anniversary of the Start
Date.

        3. RESTRICTION ON EXERCISE. This Option may not be exercised unless such
exercise is in compliance with the 1933 Securities Act, and all applicable state
securities laws, as they are in effect on the date of exercise, and the
requirements of any stock exchange or national market system on which the
Company's Common Stock may be listed at the time of exercise. Optionee
understands that the Company is under no obligation to register,

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                                                  VERITAS Software Corporation
                                                  Director's Nonqualified
                                                  Stock Option Grant
                                                  Initial Grant

qualify or list the Shares with the SEC, any state securities commission or any
stock exchange or national market system to effect such compliance. No
fractional shares shall be issued upon exercise of this Option.

        4. TERMINATION OF OPTION. Except as provided below in this Section, this
Option shall terminate and may not be exercised on or after the date Optionee
ceases to be a Board Member or a consultant of the Company. The date on which
Optionee ceases to be a Board Member or a consultant of the Company shall be
referred to as the "Termination Date."

             4.1 Termination Generally. If Optionee ceases to be a Board Member
or a consultant of the Company for any reason except for Optionee's death or
disability, within the meaning of Section 22(e)(3) of the Code, this Option, to
the extent (and only to the extent) that it is vested in accordance with Section
2 above on the Termination Date, may be exercised by Optionee within six (6)
months after the Termination Date, but in no event later than the Expiration
Date.

             4.2 Death or Disability. If Optionee ceases to be a Board Member or
a consultant of the Company because of the death of Optionee or the disability
of Optionee, within the meaning of Section 22(e)(3) of the Code, this Option, to
the extent (and only to the extent) that it is vested in accordance with Section
2 above on the Termination Date, may be exercised by Optionee (or Optionee's
legal representative) within twelve (12) months after the Termination Date, but
in no event later than the Expiration Date.

        5. MANNER OF EXERCISE.

             5.1 Exercise Agreement. This Option shall be exercisable by
delivery to the Company of an executed written Directors Stock Option Exercise
Agreement in the form attached hereto as Exhibit A, or in such other form as may
be approved by the Board or the committee thereof that administers the Plan,
which shall set forth Optionee's election to exercise some or all of this
Option, the number of Shares being purchased, any restrictions imposed on the
Shares and such other representations and agreements as may be required by the
Company to comply with applicable securities laws.

             5.2 Payment. Payment for the Shares may be made (a) in cash or by
check; (b) by surrender of shares of Common Stock of the Company that have been
owned by Optionee for more than six (6) months (and which have been paid for
within the meaning of SEC Rule 144 and, if such shares were purchased from the
Company by use of a promissory note, such note has been fully paid with respect
to such shares) or were obtained by Optionee in the open public market; (c) by
waiver of compensation due or accrued to Optionee for services rendered; (d)
provided that a public market for the Company's stock exists, through a "same
day sale" commitment from Optionee and a broker-dealer that is a member of the
National Association of Securities Dealers (an "NASD Dealer") whereby Optionee
irrevocably elects to exercise the Option and to sell a portion of the Shares so
purchased to pay for the Exercise Price and whereby the NASD Dealer irrevocably
commits upon receipt of such Shares to forward the Exercise Price directly to
the Company; (e) provided that a

                                      -2-
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public market for the Company's stock exists, through a "margin" commitment from
Optionee and an NASD Dealer whereby Optionee irrevocably elects to exercise the
Option and to pledge the Shares so purchased to the NASD Dealer in a margin
account as security for a loan from the NASD Dealer in the amount of the
Exercise Price, and whereby the NASD Dealer irrevocably commits upon receipt of
such Shares to forward the Exercise Price directly to the Company; or (f) by any
combination of the foregoing.

             5.3 Withholding Taxes. Prior to the issuance of the Shares upon
exercise of this Option, Optionee shall pay or make adequate provision for any
applicable federal or state withholding obligations of the Company.

             5.4 Issuance of Shares. Provided that such notice and payment are
in form and substance satisfactory to counsel for the Company, the Company shall
cause the Shares to be issued in the name of Optionee or Optionee's legal
representative.

        6. COMPANY'S RIGHT OF REPURCHASE. The Company reserves a right to
repurchase Unvested Shares at the Exercise Price at any time within ninety (90)
days after Optionee's Termination Date for cash and/or cancellation of purchase
money indebtedness.

        7. NONTRANSFERABILITY OF OPTION. During the lifetime of Optionee, this
Option shall be exercisable only by Optionee or by Optionee's guardian or legal
representative, unless otherwise permitted by the Committee. No Option may be
sold, pledged, assigned, hypothecated, transferred or disposed of in any manner
other than by will or by the laws of descent and distribution.

        8. INTERPRETATION. Any dispute regarding the interpretation of this
Grant shall be submitted by Optionee or the Company to the Board or the
committee thereof that administers the Plan, which shall review such dispute at
its next regular meeting. The resolution of such a dispute by the Board or
committee shall be final and binding on the Company and on Optionee. Nothing in
the Plan or this Grant shall confer on Optionee any right to continue as a Board
Member, employee, officer or consultant of the Company.

                                      -3-
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        9. ENTIRE AGREEMENT. The Plan and the Directors Stock Option Exercise
Agreement are incorporated herein by this reference. This Grant, the Plan and
the Directors Stock Option Exercise Agreement constitute the entire agreement of
the parties hereto and supersede all prior undertakings and agreements with
respect to the subject matter hereof.

                                     VERITAS SOFTWARE CORPORATION

                                     By:
                                         ---------------------------------------
                                     Name:
                                          --------------------------------------
                                     Title:
                                           -------------------------------------

                                   ACCEPTANCE

        Optionee hereby acknowledges receipt of a copy of the Plan, represents
that Optionee has read and understands the terms and provisions thereof, and
accepts this Option subject to all the terms and conditions of the Plan and this
Grant. Optionee acknowledges that there may be adverse tax consequences upon
exercise of this Option or disposition of the Shares and that Optionee should
consult a qualified tax advisor prior to such exercise or disposition.

                                       ---------------------------------
                                                   Optionee

                                      -4-
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                                                                   INITIAL GRANT

                                    EXHIBIT A

                          VERITAS SOFTWARE CORPORATION

                    DIRECTORS STOCK OPTION EXERCISE AGREEMENT

        This Agreement is made this ___ day of ____________, _____ between
VERITAS Software Corporation (the "Company"), and the optionee named below
("Optionee") with respect to the Directors Nonqualified Stock Option Grant dated
as of the Date of Option Grant set forth below (the "Grant") issued to Optionee
under the Company's 1993 Directors Stock Option Plan, as amended through October
14, 1999 (the "Plan"). Capitalized terms used herein that are not defined herein
have the definitions ascribed to them in the Plan or the Grant.

Optionee:
                                 -----------------------------------------------

Social Security Number:
                                 -----------------------------------------------

Address:
                                 -----------------------------------------------

Number of Shares Purchased:
                                 -----------------------------------------------

Price per Share:
                                 -----------------------------------------------

Aggregate Purchase Price:
                                 -----------------------------------------------

Date of Option Grant:
                                 -----------------------------------------------

Optionee hereby delivers to the Company the Aggregate Purchase Price, to the
extent permitted in the Grant, as follows (check as applicable and complete):

[ ]   in cash or check in the amount of $_________, receipt of which is
      acknowledged by the Company;

[ ]   by delivery of ________ fully-paid, nonassessable and vested shares of
      the Common Stock of the Company owned by Optionee for at least six (6)
      months prior to the date hereof (and which have been paid for within the
      meaning of SEC Rule 144), or obtained by Optionee in the open public
      market, and owned free and clear of all liens, claims, encumbrances or
      security interests, valued at the current Fair Market Value of $______ per
      share;

<PAGE>   13
                                                  VERITAS Software Corporation
                                                  Director's Nonqualified
                                                  Stock Option Grant
                                                  Initial Grant

[ ]   by the waiver hereby of compensation due or accrued to Optionee for
      services rendered in the amount of $______________;

[ ]   through a "same-day-sale" commitment, delivered herewith, from Optionee
      and the NASD Dealer named therein in the amount of $____________; or

[ ]   through a "margin" commitment, delivered herewith from Optionee and the
      NASD Dealer named therein in the amount of $______________.

Optionee hereby also delivers to the Company (i) this executed Agreement. If the
Option is being exercised with respect to Shares in which the Option has not yet
vested, Optionee hereby also delivers to the Company two (2) copies of a blank
Stock Power and Assignment Separate from Stock Certificate in the form of
Exhibit 1 attached hereto (the "Stock Powers"), both executed by Optionee (and
Optionee's spouse, if any).

Upon its receipt of the Aggregate Purchase Price and all the documents to be
executed and delivered by Optionee to the Company under the above paragraph, the
Company will issue a duly executed stock certificate evidencing the Shares in
the name of Optionee to be placed in escrow as provided in Section 3 below until
expiration or termination of the Company's Repurchase Option described in
Section 2 below.

The Company and Optionee hereby agree as follows:

        1. PURCHASE OF SHARES. On this date and subject to the terms and
conditions of this Agreement, Optionee hereby exercises the Grant with respect
to the Number of Shares Purchased set forth above of the Company's Common Stock
(the "Shares") at an aggregate purchase price equal to the Aggregate Purchase
Price set forth above and the Price per Share set forth above. The term "Shares"
refers to the Shares purchased under this Agreement and includes all securities
received in replacement of the Shares and as a result of stock dividends or
stock splits in respect of the Shares.

        2. COMPANY'S RIGHT OF REPURCHASE. On the terms and conditions set forth
in this Section, the Company, or its assignee, reserves the right to repurchase
Shares that are exercised pursuant to this Agreement that are not vested, in
accordance with Section 2 of the Grant, on Optionee's Termination Date (the
"Unvested Shares") (the "Repurchase Option") if Optionee ceases to be a Board
Member or a consultant to the Company for any reason, or no reason, including
without limitation Optionee's death, disability within the meaning of Code
Section 22(3)(3), voluntary resignation or termination by the Company with or
without cause.

             2.1 Termination and Termination Date. The Committee shall have
discretion to determine whether Optionee has ceased to be a Board Member or a
consultant to the Company and Optionee's Termination Date.

             2.2 Exercise of Repurchase Option. At any time within ninety (90)
days after the Optionee's Termination Date, the Company, or its assignee, may
elect to repurchase the

<PAGE>   14
Optionee's Unvested Shares by giving Optionee written notice of the Company's
exercise of the Repurchase Option.

             2.3 Calculation of Repurchase Price. The Company or its assignee
shall have the option to repurchase from Optionee (or from Optionee's personal
representative as the case may be) the Unvested Shares at the Optionee's
Exercise Price, proportionately adjusted for any stock split or similar change
in the capital structure of the Company as set forth in Section 11 of the Plan.

             2.4 Payment of Repurchase Price. The repurchase price shall be
payable, at the option of the Company or its assignee, by check or by
cancellation of all or a portion of any outstanding indebtedness of Optionee to
the Company or such assignee, or by any combination thereof. The repurchase
price shall be paid without interest within sixty (60) days after exercise of
the Repurchase Option.

             2.5 Right of Termination Unaffected. Nothing in this Agreement
shall be construed to limit or otherwise affect in any manner whatsoever the
right or power of the Company (or any Parent or Subsidiary of the Company) to
terminate Optionee's relationship with Company (or the Parent or Subsidiary of
the Company) at any time, for any reason or no reason, with or without cause.

        3. ESCROW. As security for Optionee's faithful performance of this
Agreement, Optionee agrees, immediately upon receipt of the stock certificate(s)
evidencing the Shares, to deliver such certificate(s), together with the Stock
Powers executed by Optionee and by Optionee's spouse, if any (with the date and
number of Shares left blank), to the Secretary of the Company or other designee
of the Company ("Escrow Holder"), who is hereby appointed to hold such
certificate(s) and Stock Powers in escrow and to take all such actions and to
effectuate all such transfers and/or releases of such Shares as are in
accordance with the terms of this Agreement. Optionee and the Company agree that
Escrow Holder will not be liable to any party to this Agreement (or to any other
party) for any actions or omissions unless Escrow Holder is grossly negligent or
intentionally fraudulent in carrying out the duties of Escrow Holder under this
Agreement. Escrow Holder may rely upon any letter, notice or other document
executed by any signature purported to be genuine and may rely on the advice of
counsel and obey any order of any court with respect to the transactions
contemplated by this Agreement. The Shares will be released from escrow upon
termination in full of the Repurchase Option. At Optionee's request, the Escrow
Holder will release the Shares from escrow after the Shares have vested.

        4. REPRESENTATIONS OF OPTIONEE. Optionee represents and warrants to the
Company that Optionee acknowledges that Optionee has received, read and
understood the Plan and the Grant and agrees to abide by and be bound by their
terms and conditions.

        5. COMPLIANCE WITH SECURITIES LAWS. Optionee understands that the Shares
have been registered on Form S-8 under the 1933 Securities Act.

        6. RESTRICTIVE LEGENDS AND STOP-TRANSFER ORDERS.

<PAGE>   15
             6.1 Legends. Optionee understands and agrees that the Company will
place the legends set forth below or similar legends on any stock certificate(s)
evidencing the Shares, together with any other legends that may be required by
state or federal securities laws, the Company's Articles of Incorporation or
Bylaws, any other agreement between Optionee and the Company.

             THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A RIGHT
             OF REPURCHASE OPTION HELD BY THE ISSUER AND/OR ITS ASSIGNEE(S) AS
             SET FORTH IN A DIRECTORS STOCK OPTION EXERCISE AGREEMENT BETWEEN
             THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH
             MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. SUCH RIGHT
             OF REPURCHASE IS BINDING ON TRANSFEREES OF THESE SHARES.

             6.2 Stop-Transfer Instructions. Optionee understands and agrees
that, to ensure compliance with the restrictions imposed by this Agreement, the
Company may issue appropriate "stop-transfer" instructions to its transfer
agent, if any, and if the Company transfers its own securities, it may make
appropriate notations to the same effect in its own records.

             6.3 Refusal to Transfer. The Company will not be required (i) to
transfer on its books any Shares that have been sold or otherwise transferred in
violation of any of the provisions of this Agreement or (ii) to treat as owner
of such Shares, or to accord the right to vote or pay dividends to any purchaser
or other transferee to whom such Shares have been so transferred.

        7. TAX CONSEQUENCES. OPTIONEE UNDERSTANDS THAT OPTIONEE MAY SUFFER
ADVERSE TAX CONSEQUENCES AS A RESULT OF OPTIONEE'S PURCHASE OR DISPOSITION OF
THE SHARES. OPTIONEE REPRESENTS THAT OPTIONEE HAS CONSULTED WITH ANY TAX
CONSULTANT(S) OPTIONEE DEEMS ADVISABLE IN CONNECTION WITH THE PURCHASE OR
DISPOSITION OF THE SHARES AND THAT OPTIONEE IS NOT RELYING ON THE COMPANY FOR
ANY TAX ADVICE. IN PARTICULAR, OPTIONEE REPRESENTS THAT OPTIONEE HAS CONSULTED
WITH OPTIONEE'S TAX ADVISORS CONCERNING THE ADVISABILITY OF FILING A SECTION
83(b) ELECTION WITH THE INTERNAL REVENUE SERVICE.

             7.1 Section 83(b) Election for Unvested Shares. With respect to
Unvested Shares, which are subject to the Repurchase Option, unless an election
is filed by Optionee with the Internal Revenue Service (and, if necessary, the
proper state taxing authorities), within 30 days of the purchase of the Unvested
Shares, electing pursuant to Section 83(b) of the Internal Revenue Code (and
similar state tax provisions, if applicable) to be taxed currently on any
difference between the Exercise Price of the Unvested Shares and their Fair
Market Value on the date of purchase, there may be a recognition of taxable
income to the Optionee, measured by the excess, if any, of the Fair Market Value
of the Unvested Shares at the time they cease to be Unvested Shares, over the
Exercise Price of the Unvested Shares. A Section 83(b) election form is attached
hereto as Exhibit 4.

<PAGE>   16
        8. ENTIRE AGREEMENT. The Plan and Grant are incorporated herein by
reference. This Agreement, the Plan and the Grant constitute the entire
agreement of the parties and supersede in their entirety all prior undertakings
and agreements of the Company and Optionee with respect to the subject matter
hereof, and are governed by California law except for that body of law
pertaining to conflict of laws.

        9. TITLE. Optionee desires to take title to the Shares as follows:

             ( )Individual, as separate property
             ( )Husband and wife, as community property
             ( )Husband and wife, as Joint Tenants
             ( )Husband and wife, as Tenants in Common

The exact spelling of name(s) under which title to the Shares is to be
taken is:_______________________________________________________________________
________________________________________________________________________________

Submitted by:                                      Accepted by:

OPTIONEE:                                          VERITAS SOFTWARE CORPORATION
         -----------------------------------
                    (print name)

---------------------------------------------      By
                  (signature)                         --------------------------

Dated:                                             Dated
       --------------------------------------            -----------------------

<PAGE>   17
                                LIST OF EXHIBITS

Exhibit 1: Stock Power and Assignment Separate from Stock Certificate

Exhibit 2: Copy of Optionee's Check or other Evidence of Optionee's Payment of
           Exercise Price

Exhibit 3: Section 83(b) Election

<PAGE>   18
                                                                   INITIAL GRANT

                                    EXHIBIT 1

                           STOCK POWER AND ASSIGNMENT
                         SEPARATE FROM STOCK CERTIFICATE

<PAGE>   19
                                                                   INITIAL GRANT

                           STOCK POWER AND ASSIGNMENT
                         SEPARATE FROM STOCK CERTIFICATE

             FOR VALUE RECEIVED and pursuant to that certain Directors Stock
Option Exercise Agreement dated as of _______________, _____, (the "Agreement"),
the undersigned hereby sells, assigns and transfers unto
_______________________________, shares of the Common Stock of VERITAS Software
Corporation (the "Company"), standing in the undersigned's name on the books of
the Company represented by Certificate No(s). ______ delivered herewith, and
does hereby irrevocably constitute and appoint the Secretary of the Company as
the undersigned's attorney-in-fact, with full power of substitution, to transfer
said stock on the books of the Company. THIS ASSIGNMENT MAY ONLY BE USED AS
AUTHORIZED BY THE AGREEMENT AND ANY EXHIBITS THERETO.

Dated:  _______________, ______

                                                   OPTIONEE

                                                   -----------------------------
                                                   (Signature)

                                                   -----------------------------
                                                   (Please Print Name)

                                                   -----------------------------
                                                   (Spouse's Signature, if any)

                                                   -----------------------------
                                                   (Please Print Spouse's Name)

INSTRUCTIONS: Please do not fill in any blanks other than the signature line.
The purpose of this Stock Power and Assignment is to enable the Company to
acquire the shares upon exercise of its "Repurchase Option" set forth in the
Agreement without requiring additional signatures on the part of the Optionee or
Optionee's Spouse, if any.

<PAGE>   20
                                                                   INITIAL GRANT

                                    EXHIBIT 2

                   COPY OF OPTIONEE'S CHECK OR OTHER EVIDENCE
                     OF OPTIONEE'S PAYMENT OF EXERCISE PRICE

<PAGE>   21
                                                                   INITIAL GRANT

                                    EXHIBIT 3

                             SECTION 83(b) ELECTION

<PAGE>   22
                 [FOR REGULAR INCOME TAX - NONQUALIFIED OPTIONS]

                       ELECTION UNDER SECTION 83(b) OF THE
                              INTERNAL REVENUE CODE

The undersigned Taxpayer hereby elects, pursuant to Section 83(b) of the
Internal Revenue Code of 1986, as amended, to include the excess, if any, of the
fair market value of the property described below at the time of transfer over
the amount paid for such property, as compensation for services in the
calculation of regular gross income.

1.    TAXPAYER'S NAME:
                               -------------------------------------------------
      TAXPAYER'S ADDRESS:
                               -------------------------------------------------
                               -------------------------------------------------
      SOCIAL SECURITY NUMBER:
                               -------------------------------------------------

2.    The property with respect to which the election is made is described as
      follows: _______ shares of Common Stock of VERITAS Software Corporation
      (the "Company") which were transferred upon Taxpayer's exercise of an
      option granted by the Company to Taxpayer in connection with the
      performance of Taxpayer's services for the Company.

3.    The date on which the shares were transferred pursuant to the exercise of
      the option was ________, _____ and this election is made for calendar year
      _____.

4.    The shares received upon exercise of the option are subject to the
      following restrictions: The Company may repurchase all or a portion of the
      shares at the Taxpayer's original purchase price under certain conditions
      at the time of Taxpayer's termination of services with the Company.

5.    The fair market value of the shares (without regard to restrictions other
      than restrictions which by their terms will never lapse) was $___ per
      share at the time of exercise of the option.

6.    The amount paid for such shares upon exercise of the option was $___ per
      share.

7.    The Taxpayer has submitted a copy of this statement to the Company.

THIS ELECTION MUST BE FILED WITH THE INTERNAL REVENUE SERVICE ("IRS"), AT THE
OFFICE WHERE THE TAXPAYER FILES ANNUAL INCOME TAX RETURNS, WITHIN 30 DAYS AFTER
THE DATE OF TRANSFER OF THE SHARES, AND MUST ALSO BE FILED WITH THE TAXPAYER'S
INCOME TAX RETURNS FOR THE CALENDAR YEAR. THE ELECTION CANNOT BE REVOKED WITHOUT
THE CONSENT OF THE IRS.

Dated:
      ---------------------------           ------------------------------------
                                            Taxpayer's Signature

                                      -2-

<PAGE>   23
                                                                 SUCCEEDING
                                                                    GRANT

                                                                 GRANT NO.:

                          VERITAS SOFTWARE CORPORATION

                    DIRECTORS NONQUALIFIED STOCK OPTION GRANT

Optionee:

Social Security Number:

Address:

Total Shares Subject to Option:

Exercise Price Per Share:

Date of Grant:

Expiration Date:

        1. GRANT OF OPTION. VERITAS SOFTWARE CORPORATION, a Delaware corporation
(the "Company"), has granted to the optionee named above ("Optionee") an option
(this "Option") to purchase the total number of shares of Common Stock of the
Company set forth above (the "Shares") at the exercise price per share set forth
above (the "Exercise Price"), subject to all of the terms and conditions of this
Grant and the Company's 1993 Directors Stock Option Plan, as amended through
October 14, 1999 (the "Plan"). Unless otherwise defined herein, capitalized
terms used herein shall have the meanings ascribed to them in the Plan.

        2. EXERCISE PERIOD OF OPTION. Subject to the terms and conditions of the
Plan and this Grant, this Option shall be exercisable immediately upon the Date
of Grant and thereafter, subject to earlier termination in accordance with
Section 4 below. This Option shall be exercisable until the Expiration Date,
subject to earlier termination in accordance with Section 4 below. Shares that
are exercised but that have not yet vested in accordance with this Section 2
("Unvested Shares"), shall be subject to a right of repurchase in the Company at
the Exercise Price that lapses as such exercised Shares vest. Subject to the
terms and conditions of the Plan and this Grant, this Option will vest as to 135
Shares per calendar month (not to exceed 1,625 Shares per year). This Option
shall fully vest as to any Shares that remain unvested on the day immediately
preceding the tenth anniversary of the Start Date.

<PAGE>   24
                                                  VERITAS Software Corporation
                                                  Director's Nonqualified
                                                  Stock Option Grant
                                                  Succeeding Grant

        3. RESTRICTION ON EXERCISE. This Option may not be exercised unless such
exercise is in compliance with the 1933 Securities Act, and all applicable state
securities laws, as they are in effect on the date of exercise, and the
requirements of any stock exchange or national market system on which the
Company's Common Stock may be listed at the time of exercise. Optionee
understands that the Company is under no obligation to register, qualify or list
the Shares with the SEC, any state securities commission or any stock exchange
or national market system to effect such compliance. No fractional shares shall
be issued upon exercise of this Option.

        4. TERMINATION OF OPTION. Except as provided below in this Section, this
Option shall terminate and may not be exercised on or after the date Optionee
ceases to be a Board Member or a consultant of the Company. The date on which
Optionee ceases to be a Board Member or a consultant of the Company shall be
referred to as the "Termination Date."

             4.1 Termination Generally. If Optionee ceases to be a Board Member
or a consultant of the Company for any reason except for Optionee's death or
disability, within the meaning of Section 22(e)(3) of the Code, this Option, to
the extent (and only to the extent) that it is vested in accordance with Section
2 above on the Termination Date, may be exercised by Optionee within six (6)
months after the Termination Date, but in no event later than the Expiration
Date.

             4.2 Death or Disability. If Optionee ceases to be a Board Member or
a consultant of the Company because of the death of Optionee or the disability
of Optionee, within the meaning of Section 22(e)(3) of the Code, this Option, to
the extent (and only to the extent) that it is vested in accordance with Section
2 above on the Termination Date, may be exercised by Optionee (or Optionee's
legal representative) within twelve (12) months after the Termination Date, but
in no event later than the Expiration Date.

        5. MANNER OF EXERCISE.

             5.1 Exercise Agreement. This Option shall be exercisable by
delivery to the Company of an executed written Directors Stock Option Exercise
Agreement in the form attached hereto as Exhibit A, or in such other form as may
be approved by the Board or the committee thereof that administers the Plan,
which shall set forth Optionee's election to exercise some or all of this
Option, the number of Shares being purchased, any restrictions imposed on the
Shares and such other representations and agreements as may be required by the
Company to comply with applicable securities laws.

             5.2 Payment. Payment for the Shares may be made (a) in cash or by
check; (b) by surrender of shares of Common Stock of the Company that have been
owned by Optionee for more than six (6) months (and which have been paid for
within the meaning of SEC Rule 144 and, if such shares were purchased from the
Company by use of a promissory note, such note has been fully paid with respect
to such shares) or were obtained by Optionee in the open public market; (c) by
waiver of compensation due or accrued to Optionee for services rendered; (d)
provided that a public market for the Company's stock exists, through a

                                      -2-
<PAGE>   25
"same day sale" commitment from Optionee and a broker-dealer that is a member of
the National Association of Securities Dealers (an "NASD Dealer") whereby
Optionee irrevocably elects to exercise the Option and to sell a portion of the
Shares so purchased to pay for the Exercise Price and whereby the NASD Dealer
irrevocably commits upon receipt of such Shares to forward the Exercise Price
directly to the Company; (e) provided that a public market for the Company's
stock exists, through a "margin" commitment from Optionee and an NASD Dealer
whereby Optionee irrevocably elects to exercise the Option and to pledge the
Shares so purchased to the NASD Dealer in a margin account as security for a
loan from the NASD Dealer in the amount of the Exercise Price, and whereby the
NASD Dealer irrevocably commits upon receipt of such Shares to forward the
Exercise Price directly to the Company; or (f) by any combination of the
foregoing.

             5.3 Withholding Taxes. Prior to the issuance of the Shares upon
exercise of this Option, Optionee shall pay or make adequate provision for any
applicable federal or state withholding obligations of the Company.

             5.4 Issuance of Shares. Provided that such notice and payment are
in form and substance satisfactory to counsel for the Company, the Company shall
cause the Shares to be issued in the name of Optionee or Optionee's legal
representative.

        6. COMPANY'S RIGHT OF REPURCHASE. The Company reserves a right to
repurchase Unvested Shares at the Exercise Price at any time within ninety (90)
days after Optionee's Termination Date for cash and/or cancellation of purchase
money indebtedness.

        7. NONTRANSFERABILITY OF OPTION. During the lifetime of Optionee, this
Option shall be exercisable only by Optionee or by Optionee's guardian or legal
representative, unless otherwise permitted by the Committee. No Option may be
sold, pledged, assigned, hypothecated, transferred or disposed of in any manner
other than by will or by the laws of descent and distribution.

        8. INTERPRETATION. Any dispute regarding the interpretation of this
Grant shall be submitted by Optionee or the Company to the Board or the
committee thereof that administers the Plan, which shall review such dispute at
its next regular meeting. The resolution of such a dispute by the Board or
committee shall be final and binding on the Company and on Optionee. Nothing in
the Plan or this Grant shall confer on Optionee any right to continue as a Board
Member, employee, officer or consultant of the Company.

                                      -3-
<PAGE>   26
        9. ENTIRE AGREEMENT. The Plan and the Directors Stock Option Exercise
Agreement are incorporated herein by this reference. This Grant, the Plan and
the Directors Stock Option Exercise Agreement constitute the entire agreement of
the parties hereto and supersede all prior undertakings and agreements with
respect to the subject matter hereof.

                                        VERITAS SOFTWARE CORPORATION

                                        By:
                                             -----------------------------------
                                        Name:           Ken Lonchar
                                              ----------------------------------

                                        Title:      Chief Financial Officer
                                              ----------------------------------

                                   ACCEPTANCE

        Optionee hereby acknowledges receipt of a copy of the Plan, represents
that Optionee has read and understands the terms and provisions thereof, and
accepts this Option subject to all the terms and conditions of the Plan and this
Grant. Optionee acknowledges that there may be adverse tax consequences upon
exercise of this Option or disposition of the Shares and that Optionee should
consult a qualified tax advisor prior to such exercise or disposition.

                                          ---------------------------------
                                                      Optionee

                                      -4-
<PAGE>   27
                                    EXHIBIT A

                          VERITAS SOFTWARE CORPORATION

                    DIRECTORS STOCK OPTION EXERCISE AGREEMENT

        This Agreement is made this ___ day of ____________, _____ between
VERITAS Software Corporation (the "Company"), and the optionee named below
("Optionee") with respect to the Directors Nonqualified Stock Option Grant dated
as of the Date of Option Grant set forth below (the "Grant") issued to Optionee
under the Company's 1993 Directors Stock Option Plan, as amended through October
14, 1999 (the "Plan"). Capitalized terms used herein that are not defined herein
have the definitions ascribed to them in the Plan or the Grant.

Optionee:
                                        ----------------------------------------

Social Security Number:
                                        ----------------------------------------

Address:
                                        ----------------------------------------

Number of Shares Purchased:
                                        ----------------------------------------

Price per Share:
                                        ----------------------------------------

Aggregate Purchase Price:
                                        ----------------------------------------

Date of Option Grant:
                                        ----------------------------------------

Optionee hereby delivers to the Company the Aggregate Purchase Price, to the
extent permitted in the Grant, as follows (check as applicable and complete):

[ ]   in cash or check in the amount of $_________, receipt of which is
      acknowledged by the Company;

<PAGE>   28
[ ]   by delivery of ________ fully-paid, nonassessable and vested shares of
      the Common Stock of the Company owned by Optionee for at least six (6)
      months prior to the date hereof (and which have been paid for within the
      meaning of SEC Rule 144), or obtained by Optionee in the open public
      market, and owned free and clear of all liens, claims, encumbrances or
      security interests, valued at the current Fair Market Value of $______ per
      share;

[ ]   by the waiver hereby of compensation due or accrued to Optionee for
      services rendered in the amount of $______________;

[ ]   through a "same-day-sale" commitment, delivered herewith, from Optionee
      and the NASD Dealer named therein in the amount of $____________; or

[ ]   through a "margin" commitment, delivered herewith from Optionee and the
      NASD Dealer named therein in the amount of $______________.

Optionee hereby also delivers to the Company (i) this executed Agreement. If the
Option is being exercised with respect to Shares in which the Option has not yet
vested, Optionee hereby also delivers to the Company two (2) copies of a blank
Stock Power and Assignment Separate from Stock Certificate in the form of
Exhibit 1 attached hereto (the "Stock Powers"), both executed by Optionee (and
Optionee's spouse, if any).

Upon its receipt of the Aggregate Purchase Price and all the documents to be
executed and delivered by Optionee to the Company under the above paragraph, the
Company will issue a duly executed stock certificate evidencing the Shares in
the name of Optionee to be placed in escrow as provided in Section 3 below until
expiration or termination of the Company's Repurchase Option described in
Section 2 below.

The Company and Optionee hereby agree as follows:

        1. PURCHASE OF SHARES. On this date and subject to the terms and
conditions of this Agreement, Optionee hereby exercises the Grant with respect
to the Number of Shares Purchased set forth above of the Company's Common Stock
(the "Shares") at an aggregate purchase price equal to the Aggregate Purchase
Price set forth above and the Price per Share set forth above. The term "Shares"
refers to the Shares purchased under this Agreement and includes all securities
received in replacement of the Shares and as a result of stock dividends or
stock splits in respect of the Shares.

        2. COMPANY'S RIGHT OF REPURCHASE. On the terms and conditions set forth
in this Section, the Company, or its assignee, reserves the right to repurchase
Shares that are exercised pursuant to this Agreement that are not vested, in
accordance with Section 2 of the Grant, on Optionee's Termination Date (the
"Unvested Shares") (the "Repurchase Option") if Optionee ceases to be a Board
Member or a consultant to the Company for any reason, or no reason, including
without limitation Optionee's death, disability within the meaning of Code
Section 22(3)(3), voluntary resignation or termination by the Company with or
without cause.

                                      -2-
<PAGE>   29
             2.1 Termination and Termination Date. The Committee shall have
discretion to determine whether Optionee has ceased to be a Board Member or a
consultant to the Company and Optionee's Termination Date.

             2.2 Exercise of Repurchase Option. At any time within ninety (90)
days after the Optionee's Termination Date, the Company, or its assignee, may
elect to repurchase the Optionee's Unvested Shares by giving Optionee written
notice of the Company's exercise of the Repurchase Option.

             2.3 Calculation of Repurchase Price. The Company or its assignee
shall have the option to repurchase from Optionee (or from Optionee's personal
representative as the case may be) the Unvested Shares at the Optionee's
Exercise Price, proportionately adjusted for any stock split or similar change
in the capital structure of the Company as set forth in Section 11 of the Plan.

             2.4 Payment of Repurchase Price. The repurchase price shall be
payable, at the option of the Company or its assignee, by check or by
cancellation of all or a portion of any outstanding indebtedness of Optionee to
the Company or such assignee, or by any combination thereof. The repurchase
price shall be paid without interest within sixty (60) days after exercise of
the Repurchase Option.

             2.5 Right of Termination Unaffected. Nothing in this Agreement
shall be construed to limit or otherwise affect in any manner whatsoever the
right or power of the Company (or any Parent or Subsidiary of the Company) to
terminate Optionee's relationship with Company (or the Parent or Subsidiary of
the Company) at any time, for any reason or no reason, with or without cause.

        3. ESCROW. As security for Optionee's faithful performance of this
Agreement, Optionee agrees, immediately upon receipt of the stock certificate(s)
evidencing the Shares, to deliver such certificate(s), together with the Stock
Powers executed by Optionee and by Optionee's spouse, if any (with the date and
number of Shares left blank), to the Secretary of the Company or other designee
of the Company ("Escrow Holder"), who is hereby appointed to hold such
certificate(s) and Stock Powers in escrow and to take all such actions and to
effectuate all such transfers and/or releases of such Shares as are in
accordance with the terms of this Agreement. Optionee and the Company agree that
Escrow Holder will not be liable to any party to this Agreement (or to any other
party) for any actions or omissions unless Escrow Holder is grossly negligent or
intentionally fraudulent in carrying out the duties of Escrow Holder under this
Agreement. Escrow Holder may rely upon any letter, notice or other document
executed by any signature purported to be genuine and may rely on the advice of
counsel and obey any order of any court with respect to the transactions
contemplated by this Agreement. The Shares will be released from escrow upon
termination in full of the Repurchase Option. At Optionee's request, the Escrow
Holder will release the Shares from escrow after the Shares have vested.

        4. REPRESENTATIONS OF OPTIONEE. Optionee represents and warrants to the
Company that Optionee acknowledges that Optionee has received, read and
understood the Plan and the Grant and agrees to abide by and be bound by their
terms and conditions.

                                      -3-
<PAGE>   30
        5. COMPLIANCE WITH SECURITIES LAWS. Optionee understands that the Shares
have been registered on Form S-8 under the 1933 Securities Act.

        6. RESTRICTIVE LEGENDS AND STOP-TRANSFER ORDERS.

             6.1 Legends. Optionee understands and agrees that the Company will
place the legends set forth below or similar legends on any stock certificate(s)
evidencing the Shares, together with any other legends that may be required by
state or federal securities laws, the Company's Articles of Incorporation or
Bylaws, any other agreement between Optionee and the Company.

             THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A RIGHT
             OF REPURCHASE OPTION HELD BY THE ISSUER AND/OR ITS ASSIGNEE(S) AS
             SET FORTH IN A DIRECTORS STOCK OPTION EXERCISE AGREEMENT BETWEEN
             THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH
             MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. SUCH RIGHT
             OF REPURCHASE IS BINDING ON TRANSFEREES OF THESE SHARES.

             6.2 Stop-Transfer Instructions. Optionee understands and agrees
that, to ensure compliance with the restrictions imposed by this Agreement, the
Company may issue appropriate "stop-transfer" instructions to its transfer
agent, if any, and if the Company transfers its own securities, it may make
appropriate notations to the same effect in its own records.

             6.3 Refusal to Transfer. The Company will not be required (i) to
transfer on its books any Shares that have been sold or otherwise transferred in
violation of any of the provisions of this Agreement or (ii) to treat as owner
of such Shares, or to accord the right to vote or pay dividends to any purchaser
or other transferee to whom such Shares have been so transferred.

        7. TAX CONSEQUENCES. OPTIONEE UNDERSTANDS THAT OPTIONEE MAY SUFFER
ADVERSE TAX CONSEQUENCES AS A RESULT OF OPTIONEE'S PURCHASE OR DISPOSITION OF
THE SHARES. OPTIONEE REPRESENTS THAT OPTIONEE HAS CONSULTED WITH ANY TAX
CONSULTANT(S) OPTIONEE DEEMS ADVISABLE IN CONNECTION WITH THE PURCHASE OR
DISPOSITION OF THE SHARES AND THAT OPTIONEE IS NOT RELYING ON THE COMPANY FOR
ANY TAX ADVICE. IN PARTICULAR, OPTIONEE REPRESENTS THAT OPTIONEE HAS CONSULTED
WITH OPTIONEE'S TAX ADVISORS CONCERNING THE ADVISABILITY OF FILING A SECTION
83(b) ELECTION WITH THE INTERNAL REVENUE SERVICE.

             7.1 Section 83(b) Election for Unvested Shares. With respect to
Unvested Shares, which are subject to the Repurchase Option, unless an election
is filed by Optionee with the Internal Revenue Service (and, if necessary, the
proper state taxing authorities), within 30 days of the purchase of the Unvested
Shares, electing pursuant to Section 83(b) of the Internal Revenue Code (and
similar state tax provisions, if applicable) to be taxed currently on any

                                      -4-
<PAGE>   31
difference between the Exercise Price of the Unvested Shares and their Fair
Market Value on the date of purchase, there may be a recognition of taxable
income to the Optionee, measured by the excess, if any, of the Fair Market Value
of the Unvested Shares at the time they cease to be Unvested Shares, over the
Exercise Price of the Unvested Shares. A Section 83(b) election form is attached
hereto as Exhibit 4.

        8. ENTIRE AGREEMENT. The Plan and Grant are incorporated herein by
reference. This Agreement, the Plan and the Grant constitute the entire
agreement of the parties and supersede in their entirety all prior undertakings
and agreements of the Company and Optionee with respect to the subject matter
hereof, and are governed by California law except for that body of law
pertaining to conflict of laws.

        9. TITLE. Optionee desires to take title to the Shares as follows:

             ( )Individual, as separate property
             ( )Husband and wife, as community property
             ( )Husband and wife, as Joint Tenants
             ( )Husband and wife, as Tenants in Common

The exact spelling of name(s) under which title to the Shares is to be
taken is:_______________________________________________________________________
________________________________________________________________________________

Submitted by:                                      Accepted by:

OPTIONEE:                                          VERITAS SOFTWARE CORPORATION
         -----------------------------------
                  (print name)

---------------------------------------------      By:
                  (signature)                         --------------------------

Dated:                                             Dated:
       --------------------------------------            -----------------------

                                      -5-
<PAGE>   32
                                LIST OF EXHIBITS

Exhibit 1:   Stock Power and Assignment Separate from Stock Certificate

Exhibit 2:   Copy of Optionee's Check or other Evidence of Optionee's Payment
             of Exercise Price

Exhibit 3:   Section 83(b) Election

                                      -6-
<PAGE>   33
                                    EXHIBIT 1

                           STOCK POWER AND ASSIGNMENT
                         SEPARATE FROM STOCK CERTIFICATE

<PAGE>   34
                           STOCK POWER AND ASSIGNMENT

                         SEPARATE FROM STOCK CERTIFICATE

             FOR VALUE RECEIVED and pursuant to that certain Directors Stock
Option Exercise Agreement dated as of _______________, _____, (the "Agreement"),
the undersigned hereby sells, assigns and transfers unto
_______________________________, shares of the Common Stock of VERITAS Software
Corporation (the "Company"), standing in the undersigned's name on the books of
the Company represented by Certificate No(s). ______ delivered herewith, and
does hereby irrevocably constitute and appoint the Secretary of the Company as
the undersigned's attorney-in-fact, with full power of substitution, to transfer
said stock on the books of the Company. THIS ASSIGNMENT MAY ONLY BE USED AS
AUTHORIZED BY THE AGREEMENT AND ANY EXHIBITS THERETO.

Dated:                 ,
       ----------------, ------

                                                   OPTIONEE

                                                   -----------------------------
                                                   (Signature)

                                                   -----------------------------
                                                   (Please Print Name)

                                                   -----------------------------
                                                   (Spouse's Signature, if any)

                                                   -----------------------------
                                                   (Please Print Spouse's Name)

INSTRUCTIONS: Please do not fill in any blanks other than the signature line.
The purpose of this Stock Power and Assignment is to enable the Company to
acquire the shares upon exercise of its "Repurchase Option" set forth in the
Agreement without requiring additional signatures on the part of the Optionee or
Optionee's Spouse, if any.

<PAGE>   35
                                    EXHIBIT 2

                   COPY OF OPTIONEE'S CHECK OR OTHER EVIDENCE
                     OF OPTIONEE'S PAYMENT OF EXERCISE PRICE

<PAGE>   36
                                    EXHIBIT 3

                             SECTION 83(b) ELECTION

<PAGE>   37
                 [FOR REGULAR INCOME TAX - NONQUALIFIED OPTIONS]

                       ELECTION UNDER SECTION 83(b) OF THE
                              INTERNAL REVENUE CODE

The undersigned Taxpayer hereby elects, pursuant to Section 83(b) of the
Internal Revenue Code of 1986, as amended, to include the excess, if any, of the
fair market value of the property described below at the time of transfer over
the amount paid for such property, as compensation for services in the
calculation of regular gross income.

1.    TAXPAYER'S NAME:
                                 -----------------------------------------------
      TAXPAYER'S ADDRESS:
                                 -----------------------------------------------

                                 -----------------------------------------------
      SOCIAL SECURITY NUMBER:
                                 -----------------------------------------------

2.    The property with respect to which the election is made is described as
      follows: _______ shares of Common Stock of VERITAS Software Corporation
      (the "Company") which were transferred upon Taxpayer's exercise of an
      option granted by the Company to Taxpayer in connection with the
      performance of Taxpayer's services for the Company.

3.    The date on which the shares were transferred pursuant to the exercise of
      the option was ________, _____ and this election is made for calendar year
      _____.

4.    The shares received upon exercise of the option are subject to the
      following restrictions: The Company may repurchase all or a portion of the
      shares at the Taxpayer's original purchase price under certain conditions
      at the time of Taxpayer's termination of services with the Company.

5.    The fair market value of the shares (without regard to restrictions other
      than restrictions which by their terms will never lapse) was $___ per
      share at the time of exercise of the option.

6.    The amount paid for such shares upon exercise of the option was $___ per
      share.

7.    The Taxpayer has submitted a copy of this statement to the Company.

THIS ELECTION MUST BE FILED WITH THE INTERNAL REVENUE SERVICE ("IRS"), AT THE
OFFICE WHERE THE TAXPAYER FILES ANNUAL INCOME TAX RETURNS, WITHIN 30 DAYS AFTER
THE DATE OF TRANSFER OF THE SHARES, AND MUST ALSO BE FILED WITH THE TAXPAYER'S
INCOME TAX RETURNS FOR THE CALENDAR YEAR. THE ELECTION CANNOT BE REVOKED WITHOUT
THE CONSENT OF THE IRS.

Dated:
        -------------------------            -----------------------------------
                                             Taxpayer's Signature

                                      -2-<PAGE>   1
                                                                   EXHIBIT 10.29

                       FIRST AMENDMENT AND RESTATEMENT OF
                CERTAIN OPERATIVE AGREEMENTS AND OTHER AGREEMENTS

                            Dated as of March 3, 2000

                                      among

                         VERITAS OPERATING CORPORATION,
                  as the Construction Agent and as the Lessee,

          THE VARIOUS PARTIES TO THE PARTICIPATION AGREEMENT AND OTHER
                    OPERATIVE AGREEMENTS FROM TIME TO TIME,
                               as the Guarantors,

                   FIRST SECURITY BANK, NATIONAL ASSOCIATION,
    not individually, except as expressly stated in the Operative Agreements,
           but solely as the Owner Trustee under the VS Trust 1999-1,

                THE VARIOUS BANKS AND OTHER LENDING INSTITUTIONS
           WHICH ARE PARTIES TO THE PARTICIPATION AGREEMENT AND OTHER
                    OPERATIVE AGREEMENTS FROM TIME TO TIME,
                                 as the Holders,

                THE VARIOUS BANKS AND OTHER LENDING INSTITUTIONS
           WHICH ARE PARTIES TO THE PARTICIPATION AGREEMENT AND OTHER
                    OPERATIVE AGREEMENTS FROM TIME TO TIME,
                                 as the Lenders,

                                       and

                             BANK OF AMERICA, N.A.,
                        as succesor to NATIONSBANK, N.A.,
                      as the Agent for the Secured Parties

--------------------------------------------------------------------------------

                       BANK OF AMERICA, N.A. and KEY BANK,
                                   as Agents,

                                       and

              THE BANK OF NOVA SCOTIA, COMERICA BANK - CALIFORNIA,
             UNION BANK OF CALIFORNIA, N.A., and WELLS FARGO BANK,
                              NATIONAL ASSOCIATION,
                                  as Co-Agents.

--------------------------------------------------------------------------------

<PAGE>   2

                       FIRST AMENDMENT AND RESTATEMENT OF
                CERTAIN OPERATIVE AGREEMENTS AND OTHER AGREEMENTS

      This FIRST AMENDMENT AND RESTATEMENT OF CERTAIN OPERATIVE AGREEMENTS AND
OTHER AGREEMENTS (this "Amendment") dated as of March 3, 2000, is by and among
VERITAS OPERATING CORPORATION (formerly known as Veritas Software Corporation),
a Delaware corporation (the "Lessee" or the "Construction Agent"); the various
parties listed on the signature pages hereto as guarantors (subject to the
definition of Guarantors in Appendix A to the Participation Agreement referenced
below, individually a "Guarantor" and collectively, the "Guarantors"); FIRST
SECURITY BANK, NATIONAL ASSOCIATION, a national banking association, not
individually but solely as the Owner Trustee under the VS Trust 1999-1 (the
"Owner Trustee" or the "Lessor"); the various banks and other lending
institutions listed on the signature pages hereto (subject to the definition of
Lenders in Appendix A to the Participation Agreement referenced below,
individually, a "Lender" and collectively, the "Lenders"); BANK OF AMERICA,
N.A., a national banking association, which is the successor to NationsBank,
N.A., as the agent for the Lenders and respecting the Security Documents, as the
agent for the Lenders and the Holders, to the extent of their interests (in such
capacity, the "Agent"); and the various banks and other lending institutions
listed on the signature pages hereto as holders of certificates issued with
respect to the VS Trust 1999-1 (subject to the definition of Holders in Appendix
A to the Participation Agreement referenced below, individually, a "Holder" and
collectively, the "Holders"). Capitalized terms used in this Amendment but not
otherwise defined herein shall have the meanings set forth in Appendix A to the
Participation Agreement (hereinafter defined).

                               W I T N E S S E T H

      WHEREAS, the parties to this Amendment are parties to that certain
Participation Agreement dated as of April 23, 1999 (the "Participation
Agreement"), certain of the parties to this Amendment are parties to that
certain Credit Agreement dated as of April 23, 1999 (the "Credit Agreement"),
certain of the parties to this Amendment are parties to that certain Trust
Agreement dated as of April 23, 1999 (the "Trust Agreement"), certain of the
parties to this Amendment are parties to that certain Master Lease Agreement
dated as of April 23, 1999 (the "Lease") and certain of the parties to this
Amendment are parties to the other Operative Agreements relating to a $72
million tax retention operating lease facility (the "Facility") that has been
established in favor of the Lessee;

      WHEREAS, the Lessee has requested certain modifications to the
Participation Agreement, the Credit Agreement, the Trust Agreement, the Security
Agreement, the Lease and the other Operative Agreements in connection with the
Lessee's request to increase the size of the Facility from $72 million to $139.4
million and to add additional banks and other lending institutions as Lenders
(each, a "New Lender") and/or Holders (each, a "New Holder");

      WHEREAS, the Lessee has requested a waiver of certain covenants and
related non-compliance with certain reporting requirements and other agreements
and obligations under the Participation Agreement and the other Operative
Agreements;

<PAGE>   3

      WHEREAS, the Financing Parties have agreed to the requested modifications
and waivers on the terms and conditions set forth herein;

      NOW, THEREFORE, IN CONSIDERATION of the premises and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties agree as follows:

                             PARTICIPATION AGREEMENT

      1.    Appendix A to the Participation Agreement is hereby amended to
modify or add the following defined terms as follows:

"Applicable Percentage" shall mean for Eurodollar Loans, Eurodollar Holder
Advances and Commitment Fees, the appropriate applicable percentages
corresponding to the Pricing Level in effect as of the most recent Calculation
Date as shown below:

<TABLE>
<CAPTION>

=================================================================================================
                                                                 Applicable        Applicable
                      Ratio of Funded           Applicable     Percentage for    Percentage for
Pricing Level          Indebtedness           Percentage for     Eurodollar        Commitment
                          To EBITDA             Eurodollar         Holder              Fee
                                                   Loans          Advances
--------------- ---------------------------- ----------------- ---------------- -----------------
<S>             <C>                               <C>               <C>               <C>
      I         Funded Indebtedness/              1.25%             2.25%             .30%
                EBITDA </= .75
--------------- ---------------------------- ----------------- ---------------- -----------------
      II        Funded Indebtedness/EBITDA        1.50%             2.50%            .375%
                > .75 but </= 1.25
--------------- ---------------------------- ----------------- ---------------- -----------------
     III        Funded Indebtedness/EBITDA        1.75%             2.75%             .45%
                > 1.25 but </= 2.00
--------------- ---------------------------- ----------------- ---------------- -----------------
      IV        Funded Indebtedness/EBITDA        2.00%             3.00%             .50%
                > 2.00
=================================================================================================
</TABLE>

      The Applicable Percentage for Eurodollar Loans, Eurodollar Holder Advances
and the Commitment Fees shall, in each case, be determined and adjusted on the
date (the "Calculation Date") by which the compliance certificate is required to
be delivered to the Agent in accordance with the provisions of Section
8.3A(a)(iii) of the Participation Agreement; provided, however, that (i) the
Applicable Percentage from the Initial Closing Date through February 9, 2000
shall be based on Pricing Level II (as shown above), (ii) the Applicable
Percentage from February 9, 2000 through March 3, 2000 shall be based on Pricing
Level I (as shown above), (iii) the Applicable Percentage on March 3, 2000 shall
be based on Pricing Level III (as shown

                                       2
<PAGE>   4

above) and shall remain at Pricing Level III until the next occurring
Calculation Date and, thereafter, the Pricing Level shall be determined as shown
above, and (iv) if the Lessee fails to provide the annual and quarterly
compliance certificates required pursuant to Sections 8.3A(a)(iii) of the
Participation Agreement to the Agent on or before such Calculation Date, the
Applicable Percentage, in each case, from such Calculation Date shall be based
on Pricing Level IV until such time that such compliance certificates are
provided whereupon the Pricing Level shall be determined as specified herein.
Each Applicable Percentage shall be effective from one Calculation Date until
the next Calculation Date. Any adjustment in the Applicable Percentage shall be
applicable to all existing Eurodollar Loans and Eurodollar Holder Advances as
well as any new Eurodollar Loans and Eurodollar Holder Advances made or issued.

      "Expiration Date" shall mean either (a) the Basic Term Expiration Date or
(b) the last day of the applicable Renewal Term; provided, in no event shall the
Expiration Date be later than March 3, 2007, unless such later date has been
expressly agreed to in writing by each of the Lessor, the Lessee, the Agent, the
Lenders and the Holders.

      "Holder Commitments" shall mean $4,182,000, as such amount may be
increased or reduced from time to time in accordance with the provisions of the
Operative Agreements; provided, if there shall be more than one (1) Holder, the
Holder Commitment of each Holder shall be as set forth in Schedule I to the
Trust Agreement as such Schedule I may be amended and replaced from time to
time.

      "Lender Commitments" shall mean $135,218,000, as such amount may be
increased or reduced from time to time in accordance with the provisions of the
Operative Agreements; provided, if there shall be more than one (1) Lender, the
Lender Commitment of each Lender shall be as set forth in Schedule 2.1 to the
Credit Agreement as such Schedule 2.1 may be amended and replaced from time to
time.

      "Leverage Ratio" shall mean, as of the end of each fiscal quarter of the
Lessee, with respect to the Credit Parties and their Consolidated Subsidiaries
on a consolidated basis, the ratio of (a) Funded Indebtedness on such date to
(b) EBITDA for the twelve month period ending on such date.

      "Majority Secured Parties" shall mean at any time, Lenders and Holders
whose Loans and Holder Advances outstanding represent at least fifty-one percent
(51%) of (a) the aggregate Advances outstanding or (b) to the extent there are
no Advances outstanding, the sum of the aggregate Holder Commitments plus the
aggregate Lender Commitments; provided, however, any amendment to Section
8.3A(h)(iii) shall require the consent of Lenders and Holders whose Loans and
Holder Advances outstanding represent at least sixty-six and two-thirds percent
(66 2/3%) of (x) the aggregate Advances outstanding or (y) to the extent there
are no Advances outstanding, the sum of the aggregate Holder Commitments plus
the aggregate Lender Commitments.

      "Material Domestic Subsidiary" shall mean any Domestic Subsidiary which
has either (i) for the fiscal year of such Domestic Subsidiary most recently
ended, total annual revenues of at least $1,000,000 or (ii) total assets of at
least $5,000,000; provided, that (a) the aggregate total

                                       3
<PAGE>   5

assets (as determined in accordance with GAAP) at any time of all Domestic
Subsidiaries of the Credit Parties (taken as a whole) that are excluded from
this definition of "Material Domestic Subsidiary" and are not otherwise
Guarantors shall not exceed $50,000,000 and (b) the aggregate annual revenues
for the most recently ended fiscal years of all Domestic Subsidiaries of the
Credit Parties (taken as a whole) that are excluded from this definition of
"Material Domestic Subsidiary" and are not otherwise Guarantors shall not exceed
$10,000,000.

      "Permitted Acquisition" shall mean a statutory merger, the acquisition of
all of the Capital Stock of another Person or all or substantially all of the
assets of another Person, provided that each of the following conditions are
satisfied: (a) prior to such acquisition, the Lessee shall deliver to the Agent
and the Majority Secured Parties a Pro Forma Compliance Certificate
demonstrating that after giving effect to such acquisition on a pro forma basis,
as if such acquisition had occurred on the first day of the twelve month period
ending on the last day of the Lessee's most recently completed fiscal year, the
Credit Parties would have been in compliance with all the financial covenants
set forth in Section 8.3A(h) of the Participation Agreement, (b) the acquisition
is consummated pursuant to a negotiated acquisition agreement and involves the
purchase of a business similar to the business of the Lessee as of the Initial
Closing Date, (c) after giving effect to the acquisition, the representations
and warranties set forth in Section 6 hereof shall be true and correct in all
material respects on and as of the date of such acquisition with the same effect
as though made on and as of such date and (d) no Default or Event of Default
exists and is continuing or would result from such acquisition.

      "Permitted Investments" shall mean Investments which are (i) cash and Cash
Equivalents; (ii) accounts receivable created, acquired or made by the Lessee or
any of its Consolidated Subsidiaries in the ordinary course of business and
payable or dischargeable in accordance with customary trade terms; (iii)
Investments consisting of Capital Stock, obligations, securities or other
property received by the Lessee or any of its Consolidated Subsidiaries in
settlement of accounts receivable (created in the ordinary course of business)
from bankrupt obligors; (iv) Investments existing as of the Closing Date and set
forth in Schedule 8.3B(f); (v) advances or loans to directors, officers,
employees, agents, customers or suppliers that do not exceed $5,000,000 in the
aggregate at any one time outstanding for the Lessee and its Consolidated
Subsidiaries; (vi) Permitted Acquisitions; (vii) Investments in any other
Person, other than Permitted Acquisitions, provided that, in the event any
particular Investment exceeds $20,000,000, such Investment shall only be
permitted if each of the following conditions are satisfied: (a) after giving
effect to the Investment, the representations and warranties set forth in
Section 6.2 of the Participation Agreement shall be true and correct in all
material respects on and as of the date of such Investment with the same effect
as though made on and as such date, (b) no Default or Event of Default would
result from such Investment and (c) the Lessee shall have provided the Agent
with satisfactory evidence demonstrating that after giving effect to any such
Investment on a pro forma basis, as if such transaction had occurred on the last
day of the Lessee's most recently completed fiscal quarter, the Credit Parties
and their Subsidiaries would have been in compliance with all the financial
covenants set forth in Section 8.3A(h) of the Participation Agreement; and
(viii) such other Investments as are reasonably acceptable to the Agent.

                                       4
<PAGE>   6

      "Roseville Lease Financing" shall mean the transactions contemplated by
the Roseville Participation Agreement and the other Operative Agreements, as
such term is defined in the Roseville Participation Agreement.

      "Roseville Participation Agreement" shall mean that certain Participation
Agreement dated as of March 3, 2000 (as amended, modified, extended,
supplemented, restated and/or replaced from time to time) as yet undated and to
be entered into among VSC, the various parties thereto from time to time, as
guarantors, First Security Bank, National Association, as Owner Trustee under
the VS Trust 2000-1, the various banks and other lending institutions parties
thereto from time to time, as lenders, the various banks and other lending
institutions parties thereto from time to time, as holders of certificates
issued with respect to the VS Trust 2000-1, and Bank of America, N.A., as agent.

      2.    Section 5.4(k) of the Participation Agreement is hereby amended to
read as follows:

      (k)   since the date of the most recent audited financial statements of
      the Lessee, there shall not have occurred any event, condition or state of
      facts which shall have or could reasonably be expected to have a Material
      Adverse Effect, other than as specifically contemplated by the Operative
      Agreements;

      3.    Section 5.3(t) of the Participation Agreement is hereby deleted.

      4.    The parenthetical phrase reading "(including without limitation the
Incorporated Representations and Warranties)" in the first sentence of Section
5.5 of the Participation Agreement is hereby deleted.

      5.    Section 5.10 of the Participation Agreement is hereby amended to
read as follows:

      5.10 JOINDER AGREEMENT REQUIREMENTS.

      The Parent and each Material Domestic Subsidiary of each Credit Party
formed or acquired subsequent to the Initial Closing Date shall become a
Guarantor and shall satisfy the following conditions within thirty (30) days
after its formation or acquisition (or, in the case of a Domestic Subsidiary
that was not a Material Domestic Subsidiary at the time of its formation or
acquisition, within thirty (30) days after such Domestic Subsidiary becomes a
Material Domestic Subsidiary of any Credit Party):

            (a)   the Parent or such Material Domestic Subsidiary, as the case
      may be, shall execute and deliver to the Agent a Joinder Agreement in the
      form attached hereto as Exhibit K;

            (b)   the Parent or such Material Domestic Subsidiary, as the case
      may be, shall have delivered to the Agent (x) an Officer's Certificate of
      the Parent or such Material Domestic Subsidiary, as the case may be, in
      the form attached hereto as Exhibit C, (y) a certificate of the Secretary
      or an Assistant Secretary of the Parent or such Material

                                       5
<PAGE>   7

      Domestic Subsidiary, as the case may be, in the form attached hereto as
      Exhibit D and (z) good standing certificates (or local equivalent) from
      the respective states where the Parent or such Material Domestic
      Subsidiary, as the case may be, is incorporated or organized and where the
      principal place of business of the Parent or such Material Domestic
      Subsidiary, as the case may be, is located as to its good standing in each
      such state;

            (c)   the Parent or such Material Domestic Subsidiary, as the case
      may be, shall have delivered to the Agent an opinion of counsel
      (reasonably acceptable to the Agent) in the form attached hereto as
      Exhibit H-1 or such other form as is reasonably acceptable to the Agent
      and the Parent or such Material Domestic Subsidiary, as the case may be;
      and

            (d)   the Agent shall have received such other documents,
      certificates and information as the Agent shall have reasonably requested.

      Notwithstanding any provision of this Section 5.10 or any other Operative
Agreement to the contrary, in the event that either (i) the aggregate total
assets (as determined in accordance with GAAP) of all Domestic Subsidiaries of
the Credit Parties (when taken as a whole) that are not Material Domestic
Subsidiaries and are not otherwise Guarantors exceeds $50,000,000, or (ii) the
aggregate annual revenues for the most recently ended fiscal years of all
Domestic Subsidiaries of the Credit Parties (taken as a whole) that are not
Material Domestic Subsidiaries and are not otherwise Guarantors exceeds
$10,000,000, the Credit Parties shall cause additional Domestic Subsidiaries to
become Guarantors and satisfy the conditions set forth in subsections (a)-(d) of
this Section 5.10 such that neither the level of aggregate assets nor the level
of aggregate revenues, as the case may be, attributable to such Domestic
Subsidiaries that are not Material Domestic Subsidiaries and are not otherwise
Guarantors shall no longer exceed the aggregate levels of assets and revenues
set forth in clauses (i) and (ii) of this sentence, respectively.

      6.    Section 6.1(f) of the Participation Agreement is hereby amended to
read as follows:

      (f)   No Default or Event of Default under the Operative Agreements
      attributable to it has occurred and is continuing;

      7.    The following is hereby added as Section 6B.9 of the Participation
Agreement:

            6B.9  ADDITIONAL GUARANTOR WAIVERS.

            (a)   The provisions of Section 6B of the Participation Agreement
      shall remain in full force and effect notwithstanding (i) any release of
      any Credit Party from any liability with respect to the Company
      Obligations; or (ii) any release or subordination of any real or personal
      property now or hereafter held by the Agent as security for the
      performance of the Company Obligations;

                                       6
<PAGE>   8

            (b)   Each Guarantor expressly waives any and all benefits which
      might otherwise be available to it under California Civil Code Sections
      2809, 2810, 2819, 2839, 2845, 2849, 2850, 2899 and 3433;

            (c)   Each Guarantor hereby waives any and all defenses, including
      but not limited to such Guarantor's defense of estoppel discussed in Union
      Bank vs. Gradsky (1968) 265 Cal.App.2d 40, based upon a foreclosure
      against all or any part of the real property security for the indebtedness
      evidenced by the Notes or Holder Certificates pursuant to the power of
      sale contained in any Operative Agreement as opposed to proceeding by way
      of judicial foreclosure. Such Guarantor waives all rights and defenses
      arising out of an election of remedies by the Agent, even though that
      election of remedies, such as a nonjudicial foreclosure with respect to
      security for a guaranteed obligation, has destroyed such Guarantor's
      rights of subrogation and reimbursement by the operation of Section 580d
      of the California Code of Civil Procedure or otherwise;

            (d)   Each Guarantor hereby waives all rights and defenses that such
      Guarantor may have because any of the Company Obligations are secured by
      real property. This means, among other things: (1) The Agent may collect
      from any Guarantor without first foreclosing on any real or personal
      property collateral pledged by any other Person, including without
      limitation, Lessee or any of its Subsidiaries; (2) If the Agent forecloses
      on any real property collateral pledged by any Guarantor: (A) the amount
      of debt may be reduced only by the price for which the collateral is sold
      at the foreclosure sale, even if the collateral is worth more than the
      sale price, (B) the Agent may collect from any Guarantor even if the
      Agent, by foreclosing on the real property collateral, has destroyed any
      right such Guarantor may have to collect from any other Credit Party. This
      is an unconditional and irrevocable waiver of any rights and defenses any
      Guarantor may have because the Company Obligations are secured by real
      property. These rights and defenses include, but are not limited to, any
      rights or defenses based upon Section 580a, 580b, 580d, or 726 of the
      California Code of Civil Procedure.

            (e)   In the case of a power of sale foreclosure under any Operative
      Agreement, the fair market value of the real property collateral shall be
      conclusively deemed to be the amount of the successful bid at the
      foreclosure sale. Each Guarantor waives any rights or benefits it may now
      or hereafter have to a fair value hearing under Section 580a of the
      California Code of Civil Procedure. The Agent shall have absolutely no
      obligation to make a bid at any foreclosure sale, but rather may make no
      bid or bid any amount which the Agent, in its sole discretion, deems
      appropriate.

            (f)   The Agent acknowledges that the provisions of this Section
      6B.9 are intended to constitute a waiver of any rights and defenses any
      Guarantor may now or hereafter have as a "guarantor" to the extent any
      Operative Agreement executed by such Guarantor is construed to be in whole
      or in part a guaranty of the Company Obligations.

                                       7
<PAGE>   9

      8.    Section 7.4 of the Participation Agreement is hereby amended to read
as follows:

      During the Commitment Period, the Lessee agrees to pay or to cause to be
paid to the Agent for the account of (a) the Lenders, respectively, a commitment
fee (the "Lender Commitment Fee") equal to the product of the average daily
Available Commitment of each Lender during the applicable portion of the
Commitment Period multiplied by a per annum rate equal to the Applicable
Percentage (determined as of the applicable Calculation Date) for the Lender
Commitment Fee and (b) the Holders, respectively, a commitment fee (the "Holder
Commitment Fee") equal to the product of the average daily Available Holder
Commitment of each Holder during the applicable portion of the Commitment Period
multiplied by a per annum rate equal to the Applicable Percentage (determined as
of the applicable Calculation Date) for the Holder Commitment Fee. Such
Commitment Fees shall be calculated on the basis of a year of three hundred
sixty (360) days for the actual days elapsed and shall be payable quarterly in
arrears on each Commitment Fee Payment Date. If all or a portion of any such
Commitment Fee shall not be paid when due, such overdue amount shall bear
interest, payable by the Lessee on demand, at a rate per annum equal to the ABR
(or in the case of overdue amounts relating to Holder Commitment Fees, the ABR
plus 1.00%) plus two percent (2%) from the date of such non-payment until such
amount is paid in full.

      9.    Section 8.3(h) of the Participation Agreement is hereby amended to
read as follows:

      (h)   The Lessee hereby covenants and agrees that as of Completion (i) the
      aggregate Property Cost shall not exceed $139,400,000 and (ii) each parcel
      of the Property shall be a Permitted Facility.

      10.   Section 8.3(k) of the Participation Agreement is hereby amended to
read as follows:

      (k)   Beginning with the fiscal quarter of the Lessee that begins on
      January 1, 2000 and ends on March 31, 2000, and for each fiscal quarter of
      the Lessee thereafter, Lessee shall furnish to the Agent a written notice
      setting forth the Lessee's calculation, in reasonable detail, of the ratio
      of Funded Indebtedness to EBITDA as of the last day of each such period
      and the level of EBITDA for such fiscal quarter of the Lessee in the form
      of the officer's compliance certificate provided in Schedule 8.3A(a)(iii)
      and by the date required pursuant to Section 8.3A(a)(iii).

      11.   Section 8.3(s) of the Participation Agreement is hereby amended to
read as follows:

      (s)   Each Credit Party hereby covenants and agrees (i) to cause the
      Parent and each Material Domestic Subsidiary of each Credit Party formed
      or acquired after the Initial Closing Date to execute a Joinder Agreement
      and to observe the terms of Sections 5.10(a)-(d), all within thirty (30)
      days of the formation or acquisition of the Parent or such Material
      Domestic Subsidiary, as the case may be (or, in the case of a Domestic
      Subsidiary that was not a Material Domestic Subsidiary at the time of its
      formation or

                                       8
<PAGE>   10

      acquisition, within thirty (30) days after such Domestic Subsidiary
      becomes a Material Domestic Subsidiary of any Credit Party), and (ii) to
      cause such additional Domestic Subsidiaries of any Credit Party to execute
      a Joinder Agreement and observe the terms of Section 5.10(a)-(d) as
      required in accordance with Section 5.10.

      12.   The following is hereby added as Section 8.3(u) of the Participation
Agreement:

      (u)   If any credit facility, loan agreement or other financing
      arrangement extended to any Credit Party or any Affiliate of any Credit
      Party, other than pursuant to the Operative Agreements and other than
      Indebtedness permitted under Sections 8.3B(a)(iii) and (vii), is ever
      secured by any collateral, the Secured Parties shall share on a pari-passu
      basis (based on the respective amounts outstanding under the Operative
      Agreements relative to the amounts outstanding under any such credit
      facility, loan agreement or other financing arrangement) in all such
      collateral.

      13.   The following is hereby added as clause (xi) of Section 8.3A(a) of
the Participation Agreement:

            (xi)  Reports and financial statements required to be delivered
      pursuant to subsections (a)(i), (a)(ii) and (a)(vii)(i) of this Section
      8.3A(a) shall be deemed to have been delivered on the date on which such
      report is posted on the Securities and Exchange Commission's website on
      the internet at the website address www.sec.gov or the Free Edgar website
      on the internet at the website www.freeedgar.com and after Lessee has
      provided written notice to the Agent, each Lender and each Holder that
      such report or financial statement has been so posted; provided that
      Lessee shall deliver paper copies of such reports and financial statements
      to the Agent and any Lender or Holder that requests Lessee to deliver such
      paper copies until written notice to cease delivering paper copies is
      given by the Agent or such Lender or Holder; provided further that,
      notwithstanding the foregoing, Lessee shall be required to deliver paper
      copies to each of the Agent and any Lender or Holder of any other
      documentation required pursuant to this Section 8.3A(a). The Agent shall
      have no obligation to request the delivery or to maintain copies of the
      reports referred to in subsections (a)(i), (a)(ii) and (a)(vii)(i) of this
      Section 8.3A(a) or to monitor compliance by Lessee with any such request
      for delivery and each Lender or Holder shall be solely responsible for
      requesting delivery to it or maintaining copies of such reports and
      financial statements.

      14.   Section 8.3A(h) of the Participation Agreement is hereby amended to
read as follows:

      (h)   FINANCIAL COVENANTS.

            (i)   Leverage Ratio. The Leverage Ratio, as of the last day of each
      fiscal quarter of the Lessee, shall be less than or equal to:

                                       9
<PAGE>   11

                        (A)   From the Initial Closing Date to and including
                              September 30, 2000, 2.50 to 1.0;

                        (B)   From October 1, 2000 to and including September
                              30, 2001, 2.25 to 1.0; and

                        (C)   From October 1, 2001 and thereafter, 2.0 to 1.0.

            (ii)  EBITDA. EBITDA, for each period set forth below, as shown on
      the financial statements of Credit Parties and their Consolidated
      Subsidiaries delivered pursuant to Section 8.3(A)(a)(i) and (ii), shall
      not be less than (i) $200,000,000 for each twelve month period ending
      December 31, 1999, March 31, 2000, June 30, 2000 and September 30, 2000,
      (ii) $250,000,000 for each twelve month period ending December 31, 2000,
      March 31, 2001, June 30, 2001 and September 30, 2001 (iii) $375,000,000
      for each twelve month period ending December 31, 2001, March 31, 2002,
      June 30, 2002 and September 30, 2002, and (iv) $500,000,000 for each
      twelve month period ending as of December 31, 2002 and each March 31, June
      30, September 30 and December 31 thereafter.

            (iii) Quick Ratio. The Quick Ratio, as of the last day of each
      fiscal quarter of the Lessee, shall be greater than or equal to 1.50 to
      1.0.

      15.   Section 8.3B(a) of the Participation Agreement is hereby amended to
read as follows:

      (a)   INDEBTEDNESS.

            No Credit Party will, nor will it permit any of its Consolidated
      Subsidiaries to, contract, create, incur, assume or permit to exist any
      Indebtedness, except:

                  (i)   Indebtedness arising under this Participation Agreement
      and the other Operative Agreements;

                  (ii)  Indebtedness of a Credit Party and its Consolidated
      Subsidiaries set forth in Schedule 8.3B(a)(ii) (and renewals, refinancings
      and extensions thereof on terms and conditions no less favorable to such
      Person than such existing Indebtedness);

                  (iii) purchase money Indebtedness (including obligations in
      respect of Capital Leases) hereafter incurred by a Credit Party or any of
      its Consolidated Subsidiaries to finance the purchase of fixed assets
      provided that (i) the total of all such Indebtedness for all such Persons
      taken together (including any such Indebtedness referred to in subsection
      (ii) above) shall not exceed (A) during fiscal year 1999 and 2000, an
      aggregate principal amount of $25,000,000 at any one time outstanding and
      (B) at any time subsequent to fiscal year 2000, $40,000,000 at any one
      time outstanding; (ii) such Indebtedness when incurred shall not exceed
      the purchase price of the asset(s) financed; and (iii) no such
      Indebtedness

                                       10
<PAGE>   12

      shall be refinanced for a principal amount in excess of the principal
      balance outstanding thereon at the time of such refinancing;

                  (iv)  other unsecured Indebtedness (exclusive of Indebtedness
      permitted under subsection (v) and subsection (vi) of this Section
      8.3B(a)) of the Credit Parties and their Consolidated Subsidiaries in an
      aggregate amount not to exceed $300,000,000 on terms and conditions
      satisfactory in form and substance to the Majority Secured Parties;
      provided, however, the amount of Indebtedness permitted under this
      subsection (iv) shall be reduced by an amount equal to the sum of (a) the
      aggregate outstanding Loans (as such term is defined in Appendix A to the
      Roseville Participation Agreement) under the Roseville Lease Financing,
      plus (b) the aggregate outstanding Holder Advances (as such term is
      defined in Appendix A to the Roseville Participation Agreement) under the
      Roseville Lease Financing, plus (c) accrued and unpaid Interest or Holder
      Yield (in each case, as defined in Appendix A to the Roseville
      Participation Agreement) due and owing on such Loans or Holder Advances,
      plus (d) any other amounts due and owing by the Lessee or the Construction
      Agent to any Person under the Roseville Lease Financing;

                  (v)   the Subordinated Debt;

                  (vi)  Indebtedness of a Credit Party consisting of unsecured
      convertible subordinated debentures on terms and conditions (including,
      without limitation, the subordination terms) reasonably acceptable to the
      Agent, and any renewal, refinancings or extensions thereof on terms and
      conditions (including, without limitation, the subordinations terms)
      reasonably acceptable to the Agent; and

                  (vii) Indebtedness arising under the Roseville Lease
      Financing.

      16.   Section 11.6 of the Participation Agreement is hereby amended to
read as follows:

      Each and every Indemnified Person shall at all times have the rights and
benefits, and the Indemnity Provider shall have the obligations, in each case
provided pursuant to the Operative Agreements with respect to environmental
matters, violations of any Environmental Law, any Environmental Claim or other
loss of or damage to any property or the environment relating to any Property,
the Lease, the Agency Agreement or the Indemnity Provider (including without
limitation the rights and benefits provided pursuant to Section 11.1(c)).

                                 LEASE AGREEMENT

      17.   Section 2.2 of the Lease is hereby amended to read as follows:

      2.2   LEASE TERM.

            The basic term of this Lease with respect to each Property (the
"Basic Term") shall begin upon the Property Closing Date for such Property (in
each case the "Basic Term Commencement Date") and shall end on March 3, 2005
(the "Basic Term Expiration Date"), unless

                                       11
<PAGE>   13

the Basic Term is earlier terminated or the term of this Lease is renewed (as
described below) in accordance with the provisions of this Lease.
Notwithstanding the foregoing, Lessee shall not be obligated to pay Basic Rent
until the Rent Commencement Date with respect to such Property.

            Upon the written request of Lessee and with the consent of all of
the Financing Parties, in their sole discretion, the term of this Lease for each
Property may be extended for up to two (2) additional terms each of one (1)
year's duration from the Basic Term Expiration Date (each, a "Renewal Term");
provided, that the expiration date for the final Renewal Term for each Property
shall not be later than March 3, 2007, unless such later expiration date has
been expressly agreed to, at the request of Lessee, in writing by each of the
Lessor, the Agent, the Lenders and the Holders in their sole discretion.

      18.   The second sentence of Section 14.3(a) of the Lease is hereby
amended to read as follows:

      All such insurance shall be at the cost and expense of Lessee and provided
      by nationally recognized, financially sound insurance companies having a
      rating by A.M. Best's Key Rating Guide of at least an (i) A- and a
      Financial Performance Rating of at least a IX (regarding all hazard
      insurance coverages) and (ii) A- and a Financial Performance Rating of at
      least a IX (regarding all liability insurance coverages).

      19.   Section 15.2(b) of the Lease is hereby amended to read as follows:

      (b)   In light of the environmental condition of the Property (which
      includes the Land) existing as of the Property Closing Date (the
      "Pre-Existing Environmental Conditions"), the presence of Pre-Existing
      Hazardous Substances on the Property (which includes the Land) shall not
      violate the terms of this Lease. Responsibility for the cleanup and/or
      remediation of the Pre-Existing Environmental Conditions shall be
      allocated pursuant to the terms of the Purchase Agreement and the
      Indemnity Agreement; provided, notwithstanding any of the provisions of
      the Lease or any of the Operative Agreements, to the extent any
      Pre-Existing Environmental Condition is not addressed by any third party
      pursuant to the Purchase Agreement and/or the Indemnity Agreement so as to
      remediate such Pre-Existing Environmental Condition in accordance with the
      applicable Environmental Laws, then Lessee shall be responsible for the
      cleanup and/or remediation of such Pre-Existing Environmental Condition in
      accordance with the applicable terms of the Operative Agreements including
      without limitation Section 15.2(c). Lessee shall in all events be
      responsible for the environmental indemnification of the Financing Parties
      in accordance with the Participation Agreement.

                                CREDIT AGREEMENT

      20.   Schedule 2.1 of the Credit Agreement is hereby deemed amended and
restated in its entirety to read as Schedule 2.1 attached hereto as EXHIBIT 1.

      21.   Section 7.7 of the Credit Agreement is hereby amended to read as
follows:

                                       12
<PAGE>   14

      0.1   INDEMNIFICATION.

      The Lenders agree to indemnify the Agent, in its capacity as such (to the
extent not reimbursed by the Borrower and without limiting the obligation of the
Borrower to do so), ratably according to their respective Commitment Percentages
in effect on the date on which indemnification is sought under this Section 7.7
(or, if indemnification is sought after the date upon which the Commitments
shall have terminated and the Loans shall have been paid in full, ratably in
accordance with their Commitment Percentages immediately prior to such date),
from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind whatsoever which may at any time (including without limitation at any time
following the payment of the Notes) be imposed on, incurred by or asserted
against any of them in any way relating to or arising out of, the Commitments,
this Agreement, any of the other Operative Agreements or any documents
contemplated by or referred to herein or therein or the transactions
contemplated hereby or thereby or any action taken or omitted by any of them
under or in connection with any of the foregoing; provided, that no Lender shall
be liable for the payment of any portion of such liabilities, obligations,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
resulting from the gross negligence or willful misconduct of the Agent. The
agreements in this Section 7.7 shall survive the payment of the Notes and all
other amounts payable hereunder.

                                 TRUST AGREEMENT

      22.   Schedule I of the Trust Agreement is hereby deemed amended and
restated in its entirety to read as Schedule I attached hereto as EXHIBIT 2.

                                     WAIVERS

      23.   The Financing Parties hereby

(a)   waive the requirement pursuant to Section 8.3(k) of the Participation
Agreement (as in effect prior to the effective date of this Amendment) that, on
or before the first Business Day of the fiscal quarters of the Lessee beginning
July 1, 1999, October 1, 1999 and January 1, 2000, respectively, the Lessee
provide to the Agent written notice of Lessee's calculation of the ratio of
Funded Indebtedness to EBITDA and the level of EBITDA for the fiscal quarter of
the Lessee immediately preceding such dates;

(b)   waive the requirement pursuant to Section 8.3A(a)(ii) of the Participation
Agreement that the Lessee provide quarterly financial statements within 45 days
after the end of the fiscal quarters of the Lessee ending July 31, 1999 and
October 31, 1999 and the certificate of the Lessee's chief financial officer
described in such Section 8.3A(a)(ii) and Section 8.3A(a)(iii);

(c)   waive Lessee's failure to cause each of Veritas Software Corporation
(formerly known as Veritas Holding Corporation), as Parent, and Seagate Software
Network & Storage Management Group, Inc. and OpenVision International, Inc., as
Domestic Subsidiaries of the Lessee or the Parent, to become Guarantors and to
otherwise comply with the provisions of

                                       13
<PAGE>   15

Sections 5.10 and 8.3(s) of the Participation Agreement within thirty (30) days
after such entity's formation or acquisition by the Lessee or the Parent;

(d)   waive Lessee's failure to notify the Agent of the change of Lessee's name
effective as of May 28, 1999, as required pursuant to Section 8.3(i) of the
Participation Agreement;

(e)   waive Lessee's failure to submit to the Agent the terms and conditions of
those certain 1.856% Convertible Subordinated Notes due 2006 in the aggregate
principal amount at maturity of $465,750,000 issued under that certain Indenture
dated as of August 13, 1999 by and among VERITAS Software Corporation, VERITAS
Operating Corporation and State Street Bank and Trust Company of California,
N.A., as trustee, and that certain First Supplemental Indenture dated as of
August 17, 1999 by and among VERITAS Software Corporation, VERITAS Operating
Corporation and State Street Bank and Trust Company of California, N.A., as
trustee, prior to their issuance, as required pursuant to Section 8.3B(a)(vi)of
the Participation Agreement; and

(f)   agree that the Lessee's failure to comply with the provisions of Sections
8.3(k), 8.3A(a)(ii), 8.3A(a)(iii), 5.10, 8.3(s), 8.3(i) and 8.3B(a)(vi) of the
Participation Agreement for the periods and on the dates set forth in the
preceding subsections (a) through (e) only shall not constitute a Lease Default
or Lease Event of Default under Section 17.1(l)(iii) of the Lease Agreement or a
Credit Agreement Default or Credit Agreement Event of Default under Section 6(f)
of the Credit Agreement.

      24.   The waivers set forth herein are one-time waivers and shall not be
construed to be waivers as to future compliance with Sections 8.3(k),
8.3A(a)(ii), 8.3A(a)(iii), 5.10, 8.3(s), 8.3(i) or 8.3B(a)(vi) of the
Participation Agreement at all times after the effective date of this Agreement
(including, except as expressly provided herein, the fiscal quarter of the
Lessee beginning January 1, 2000) or the Lessee's obligation to comply fully
with any other duty, term, condition or covenant contained in any of the
Operative Agreements.

                                  MISCELLANEOUS

      25.   This Amendment shall be effective upon satisfaction of the following
conditions:

            (a)   execution and delivery of this Amendment by the parties hereto
      and execution and delivery of such other documents, agreements or
      instruments deemed necessary or advisable by the Agent; and

            (b)   (i)   receipt by the Agent of an officer's certificate of the
      Lessee and the Construction Agent (in form and in substance reasonably
      satisfactory to the Agent) certifying that a resolution has been adopted
      by Lessee's Board of Directors approving and authorizing the execution,
      delivery, and performance of this Amendment, specifying that no Default or
      Event of Default shall have occurred and be continuing, specifying that
      the representations and warranties of Lessee set forth in the
      Participation Agreement are true and correct (except for any such
      representations and warranties which relate solely to an earlier time) and
      certifying as to the incumbency of the officer of Lessee executing

                                       14
<PAGE>   16

      this Amendment and (ii) receipt by the Agent of an officer's certificate
      of each Credit Party (other than the Lessee and the Construction Agent)
      certifying that the execution, delivery and performance of this Amendment
      has been duly approved and authorized by such Credit Party's Board of
      Directors, such officer's certificate to be in form and substance
      reasonably satisfactory to the Agent and certifying as to the incumbency
      of the officer of such Credit Party executing this Amendment; and

            (c)   receipt by the Agent of legal opinions of counsel to the
      Credit Parties relating to this Amendment in form and substance reasonably
      satisfactory to the Agent.

      26.   Each New Lender hereby acknowledges, agrees and confirms that, by
its execution of this Amendment, such New Lender will be deemed to be a party to
the Participation Agreement, the Credit Agreement and such other of the
Operative Agreements as are necessary or desirable to accomplish the purposes of
this Amendment and each of the other Operative Agreements. Each New Lender
further acknowledges, agrees and confirms that it shall have all of the
obligations of a Lender under any of the Operative Agreements as if such New
Lender had executed such Operative Agreement, and agrees to be bound by all of
the terms, provisions and conditions applicable to a Lender contained in any
Operative Agreement.

      27.   Each New Holder hereby acknowledges, agrees and confirms that, by
its execution of this Amendment, such New Holder will be deemed to be a party to
the Participation Agreement, the Trust Agreement and such other of the Operative
Agreements as are necessary or desirable to accomplish the purposes of this
Amendment and each of the other Operative Agreements. Each New Holder further
acknowledges, agrees and confirms that it shall have all of the obligations of a
Holder under any of the Operative Agreements as if such New Holder had executed
such Operative Agreement, and agrees to be bound by all of the terms, provisions
and conditions applicable to a Holder contained in any Operative Agreement.

      28.   Except as modified hereby, all of the terms and provisions of the
Operative Agreements (including Schedules and Exhibits) shall remain in full
force and effect.

      29.   The Lessee agrees to pay all reasonable costs and expenses of the
Agent in connection with the preparation, execution and delivery of this
Amendment, including without limitation the reasonable fees and expenses of
Moore & Van Allen, PLLC.

      30.   This Amendment may be executed in any number of counterparts, each
of which when so executed and delivered shall be deemed an original and it shall
not be necessary in making proof of this Amendment to produce or account for
more than one such counterpart.

      31.   This Amendment shall be deemed to be a contract made under, and for
all purposes shall be construed in accordance with the laws of the State of New
York.

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

                                       15
<PAGE>   17

      IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of
this Amendment to be duly executed and delivered as of the date first above
written.

                                          VERITAS OPERATING CORPORATION
                                          (formerly known as Veritas Software
                                          Corporation), as the Construction
                                          Agent and as the Lessee

                                          By: /s/ KEN LONCHAR
                                             ----------------------------------
                                          Name: Ken Lonchar
                                          Title: Senior Vice President and
                                                 Chief Financial Officer

                                          VERITAS SOFTWARE CORPORATION (formerly
                                          known as Veritas Holding Corporation),
                                          as a Guarantor

                                          By: /s/ KEN LONCHAR
                                             ----------------------------------
                                          Name: Ken Lonchar
                                          Title: Senior Vice President and
                                                 Chief Financial Officer

                                          SEAGATE SOFTWARE NETWORK & STORAGE
                                          MANAGEMENT GROUP, INC., as a Guarantor

                                          By: /s/ KEN LONCHAR
                                             ----------------------------------
                                          Name: Ken Lonchar
                                          Title: Senior Vice President and
                                                 Chief Financial Officer

                                          OPENVISION INTERNATIONAL, INC., as a
                                          Guarantor

                                          By: /s/ KEN LONCHAR
                                             ----------------------------------
                                          Name: Ken Lonchar
                                          Title: Senior Vice President and
                                                 Chief Financial Officer

                           [signature pages continue]

<PAGE>   18

                                          FIRST SECURITY BANK, NATIONAL
                                          ASSOCIATION, not individually, except
                                          as expressly stated herein, but solely
                                          as the Owner Trustee under the
                                          VS Trust 1999-1

                                          By: /s/ VAL T. ORTON
                                             ----------------------------------
                                          Name: Val T. Orton
                                          Title: Vice President

<PAGE>   19

                                          BANK OF AMERICA, N.A. (which is the
                                          successor to NationsBank, N.A.), as a
                                          Holder, as a Lender and as the Agent

                                          By: /s/ DOUGLAS T. MECKELNBURG
                                             ----------------------------------
                                          Name: Douglas T. Meckelnburg
                                          Title: Vice President

<PAGE>   20

                                          COMERICA BANK - CALIFORNIA, as a
                                          Holder and as a Lender

                                          By: /s/ ROBERT E. WAYS
                                             ----------------------------------
                                          Name: Robert E. Ways
                                          Title: Corporate Banking Officer

<PAGE>   21

                                          KEYBANK NATIONAL--ASSOCIATION, as a
                                          Holder and as a Lender

                                          By: /s/ MARY K. YOUNG
                                             ----------------------------------
                                          Name: Mary K. Young
                                          Title: Assistant Vice President

<PAGE>   22

                                          FLEET NATIONAL BANK, as a Lender

                                          By: /s/ WILLIAM E. RURODE, JR.
                                             ----------------------------------
                                          Name: William E. Rurode, Jr.
                                          Title: Executive Vice President

<PAGE>   23

                                          THE BANK OF NOVA SCOTIA, as a Lender

                                          By: /s/ CHRISTOPHER OSBORN
                                             ----------------------------------
                                          Name: Christopher Osborn
                                          Title: Director

<PAGE>   24

                                          THE FUJI BANK, LIMITED, as a Lender

                                          By: /s/ FUKUDA, MASAHITO
                                             ----------------------------------
                                          Name: Mr. Fukuda, Masahito
                                          Title: Senior Vice President and
                                                 Group Head

<PAGE>   25

                                          FBTC LEASING CORP., as a Lender

                                          By: /s/ MASATOSHI KAISHITA
                                             ----------------------------------
                                          Name: Masatoshi Kaishita
                                          Title: Treasurer

<PAGE>   26

                                          UNION BANK OF CALIFORNIA, N.A., as a
                                          Holder and as a Lender

                                          By: /s/ GLENN LEYRER
                                             ----------------------------------
                                          Name: Glenn Leyrer
                                          Title: Vice President

<PAGE>   27

                                         WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                         as a Holder and as a Lender

                                         By: /s/ ERIC C. HOUSER
                                            ----------------------------------
                                         Name: Eric C. Houser
                                         Title: Vice President

<PAGE>   28

                                          THE INDUSTRIAL BANK OF JAPAN, LIMITED,
                                          as a Lender

                                          By: /s/ KEN IWATA
                                             ----------------------------------
                                          Name: Ken Iwata
                                          Title: Senior Vice President and
                                                 Manager

<PAGE>   29

                                          IBJTC LEASING CORPORATION-BSC, as a
                                          Holder

                                          By: /s/ TOMOKO AOKI
                                             ----------------------------------
                                          Name: Tomoko Aoki
                                          Title: Vice President

                              [signature pages end]

<PAGE>   30

                                    EXHIBIT 1

                                  Schedule 2.1

<TABLE>
<CAPTION>

                                             Tranche A                       Tranche B
                                             Commitment                     Commitment
                                             ----------                     ----------

Name and Address of Lenders              Amount/Percentage               Amount/Percentage
---------------------------           -----------------------         -----------------------
<S>                                   <C>             <C>             <C>             <C>
Bank of America, N.A.                 $17,726,639     14.786%         $2,267,361      14.786%
555 California Street, 41st Floor
Mail Code:  CA5-705-41-01
San Francisco, CA  94104
Attention:  Doug Meckelnburg
Telephone:  (415) 953-9155
Telecopy:   (415) 622-0632

Comerica Bank - California            $13,760,000     11.478%         $1,760,000      11.478%
800 Oak Grove Avenue
Menlo Park, CA  94025
Attention:  Rob Ways
Telephone:  (650) 462-6056
Telecopy:   (650) 462-6058

KeyBank National Association          $17,726,639     14.786%         $2,267,361      14.786%
700 Fifth Avenue, 46th Floor
Seattle, WA 98104
Attention:  Mary K. Young
Telephone:  (206) 684-6085
Telecopy:   (206) 684-6035

Fleet National Bank                   $9,752,577       8.135%         $1,247,423       8.135%
Information Technology Division
Mail Code:  CA FML Palo Alto
435 Tasso Street, Suite 250
Palo Alto, CA 94301
Attention:  Sarabelle Hitchner,
            Vice President
Telephone:  (650) 470-4180
Telecopy:   (650) 853-1425
</TABLE>

<PAGE>   31

<TABLE>
<CAPTION>

                                             Tranche A                       Tranche B
                                             Commitment                     Commitment
                                             ----------                     ----------

Name and Address of Lenders              Amount/Percentage               Amount/Percentage
---------------------------          ------------------------         -----------------------
<S>                                  <C>              <C>             <C>             <C>
The Bank of Nova Scotia              $14,185,568      11.833%         $1,814,432      11.833%
Atlanta Agency
600 Peachtree Street,
N.E. Suite 2700
Atlanta, GA 30308
Attention:  Joseph Legista,
            Loan Officer
Telephone:  (404) 877-1563
Telecopy:  (404) 888-8998

The Fuji Bank, Limited               $9,752,577        8.135%         $0                 0%
333 South Hope Street, 39th Floor
Los Angeles, CA 90071
Attention:  Linda Zhong, Clerk
Telephone:  (213) 253-4137
Telecopy:  (213) 253-4178

FBTC Leasing Corp.                   $0                  0%           $1,247,423       8.135%
2 World Trade Center
New York, NY 10048
Attention:  Carl Marcantonio
Telephone:  (212) 898-2439
Telecopy:   (212) 775-7276

Union Bank of California, N.A.       $13,760,000      11.478%         $1,760,000      11.478%
1980 Saturn Street
Monterey Park, CA 91755
Attention:  Gohar Karapetyan,
            Vice President
Telephone:  (323)720-2679
Telecopy:   (323)724-6198

Wells Fargo Bank, National           $13,760,000      11.478%         $1,760,000      11.478%
Association
201 3rd Street, 8th Floor
San Francisco, CA 94301
Attention:  Rosanna Roxas
Telephone:  (415)477-5390
Telecopy:   (415) 979-0675
</TABLE>

<PAGE>   32

<TABLE>
<CAPTION>

                                             Tranche A                       Tranche B
                                             Commitment                     Commitment
                                             ----------                     ----------

Name and Address of Lenders              Amount/Percentage               Amount/Percentage
---------------------------          ------------------------        ------------------------
<S>                                  <C>              <C>             <C>             <C>
The Industrial Bank of Japan,        $9,460,000        7.891%         $1,210,000       7.891%
Limited
1251 Avenue of the Americas
New York, NY 10020
Attention:  Richard Emmich,
            Vice President
Telephone:  (212) 282-3000
Telecopy:   (212) 282-4478

TOTAL                                $119,884,000        100%         $15,334,000        100%
</TABLE>

<PAGE>   33

                                   SCHEDULE 1

                               HOLDER COMMITMENTS

<TABLE>
<CAPTION>
                                                           Holder Commitment
                                                           -----------------

            Name of Holder                                 Amount/Percentage
            --------------                                 -----------------
<S>                                                <C>                     <C>
Bank of America, N.A.                              $1,206,000              28.8379%
555 California Street, 41st Floor
Mail Code:  CA5-705-41-01
San Francisco, CA  94104
Attention:  Doug Meckelnburg
Telephone:  (415) 953-9155
Telecopy:   (415) 622-0632

KeyBank National Association                       $1,206,000              28.838%
700 Fifth Avenue, 46th Floor
Seattle, WA 98104
Attn:  Mary K. Young
Telephone:  (206)684-6085
Telecopy:   (206)684-6035

Comerica Bank - California                         $480,000                11.478%
800 Oak Grove Avenue
Menlo Park, CA  94025
Attention:  Rob Ways
Telephone:  (650) 462-6056
Telecopy:   (650) 462-6058

Union Bank of California, N.A.                     $480,000                11.478%
1980 Saturn Street
Monterey Park, CA 91755
Attention:  Gohar Karapetyan,
            Vice President
Telephone:  (323)720-2679
Telecopy:   (323)724-6198

Wells Fargo Bank, National Association             $480,000                11.478%
201 3rd Street, 8th Floor
San Francisco, CA 94301
Attention:  Rosanna Roxas
Telephone:  (415)477-5390
Telecopy:   (415) 979-0675
</TABLE>

<PAGE>   34

<TABLE>
<CAPTION>
                                                           Holder Commitment
                                                           -----------------

            Name of Holder                                 Amount/Percentage
            --------------                                 -----------------
<S>                                                <C>                     <C>
IBJTC Leasing Corporation-BSC                      $330,000                7.891%
1251 Avenue of the Americas
New York, NY 10020
Attention:  Virginia Fino
Telephone:  (212) 282-3588
Telecopy:   (212) 282-4492

TOTAL                                              $4,182,000              100%
</TABLE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00005-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00005-of-00352.parquet"}]]