Document:

Common Stock Purchase Agreement

 Exhibit 10.1 
  
 COMMON STOCK PURCHASE AGREEMENT 
  
 This COMMON STOCK PURCHASE AGREEMENT (the “Agreement”) dated September 18, 2003 is entered into by and
among Blue Coat Systems, Inc., a Delaware corporation (the “Company”), and each of the parties set forth on Schedule A attached hereto (each, an “Investor” and, collectively, the
“Investors”). 
  
 Unless otherwise defined
herein, capitalized terms used herein shall have the meanings given to them under the Securities Act of 1933, as amended (the “Securities Act”). 
  
 The parties hereto agree as follows: 
  
 1. Purchase and Sale. In consideration of and upon the basis of the representations, warranties and agreements and
subject to the terms and conditions set forth in this Agreement, each Investor agrees, severally and not jointly, to purchase from the Company and the Company agrees to sell to each Investor, severally and not jointly, on the Closing Date (as
defined in Section 2 hereof), shares of the Company’s Common Stock (the “Common Shares”) for a price per share equal to the Purchase Price (as defined herein). The number of Common Shares to be purchased and the total Purchase
Price to be paid by each such Investor are as set forth opposite such Investor’s name on Schedule A hereto and aggregate to 1,311,807 shares. For purposes of this Agreement, “Purchase Price” shall mean $9.91, which is the
average closing price per share of the Company’s Common Stock on The Nasdaq National Market (“Nasdaq”) over the five (5) trading day period ending on the trading day prior to the date of this Agreement. On or before the Closing
Date, the Company will have authorized the sale and issuance to the Investors of the Common Shares. 
  
 2. Closing. 
  
 a. The closing of the sale of the Common Shares (the “Closing”) shall take place on September 18, 2003 upon satisfaction or, if
applicable, waiver of the conditions set forth in Sections 6 and 7 hereof, or at such other date and time as the Investors purchasing a majority of the Common Shares being sold pursuant to this Agreement (the “Majority Investors”)
and the Company shall mutually agree (such date and time being referred to herein as the “Closing Date”). At or prior to the Closing, the Majority Investors shall receive confirmation (which confirmation may be telephonic) from
Boston EquiServe, the Company’s transfer agent, that the Investors shall be listed as record owners of the Common Shares that such Investors are purchasing pursuant to this Agreement. At the Closing each Investor will pay the Purchase Price for
the Investor’s shares by check or wire transfer of immediately available funds. 
  
 b. As soon as reasonably practicable, the Company shall deliver to each Investor a certificate representing the Common Shares that each Investor is purchasing, duly registered on the books of the Company in the name
of such Investor. 
  
 3. Representations and Warranties of the
Company. Except as otherwise specifically described in (i) the Company’s annual report on Form 10-K for the year ended 

 
April 30, 2003 and any current reports on Form 8-K or quarterly reports on Form 10-Q filed subsequent thereto with the Securities and Exchange Commission
(the “SEC”) by the Company (including the information incorporated by reference therein, the “SEC Documents”), or (ii) a Schedule of Exceptions (the “Schedule of Exceptions”) furnished to each
Investor, each of which qualify the following representations and warranties in their entirety, the Company hereby represents and warrants to each Investor as follows: 
  
 a. The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of
Delaware and has all requisite corporate power and authority to carry on its business as presently conducted. The Company is duly qualified to transact business and is in good standing in each jurisdiction in which the failure to so qualify would
have a material adverse effect on the business, properties, financial condition or operating results of the Company, as such business is presently conducted. Each Significant Subsidiary (as defined in the Securities Exchange Act of 1934, as amended
(the “Exchange Act”)) of the Company is duly organized, validly existing and in good standing under the laws of its respective jurisdiction and has all requisite corporate power and authority to carry on its business as presently
conducted, except where the failure to be in good standing would not have a material adverse effect on the business, properties, financial condition or operating results of the Company, as such business is presently conducted. 
  
 b. All corporate action on the part of the Company, its officers, directors
and stockholders necessary for the authorization, execution and delivery of this Agreement and the Registration Rights Agreement (as defined in Section 6), the performance of all obligations of the Company hereunder and thereunder, and the
authorization, issuance, sale and delivery of the Common Shares being sold hereunder has been taken or will be taken prior to the Closing, and this Agreement and the Registration Rights Agreement constitute valid and legally binding obligations of
the Company, enforceable in accordance with their respective terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement of creditors’ rights
generally and (ii) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies. 
  
 c. The Company is not in violation or default of any provision of its Amended and Restated Certificate of Incorporation (as amended) or bylaws, or of any
judgment, order, writ, or decree by which it is bound. The Company is not in violation or default of any instrument or Material Contract (as defined herein) to which it is a party or by which it is bound, or, to its knowledge, of any provision of
any federal or state statute, rule or regulation applicable to the Company in which such violation or default of such instrument, Material Contract or provision of such federal or state statute, rule or regulation applicable to the Company would
have, either individually or in the aggregate, a material adverse effect on the business, properties, financial condition or operating results of the Company, as such business is presently conducted. The Company has not received notice from any
other party to a Material Contract that such party intends to terminate such Material Contract. The execution, delivery and performance of this Agreement and the Registration Rights Agreement, and the consummation of the transactions contemplated
hereby and thereby will not result in any such violation or be in conflict with or constitute, with or without the passage of time and giving of notice, either a default under any 
  

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 such provision, instrument, judgment, order, writ, decree or Material Contract or an event that results in the creation
of any lien, charge or encumbrance upon any assets of the Company or the suspension, revocation, impairment, forfeiture, or nonrenewal of any material permit, license, authorization, or approval applicable to the Company, its business or operations
or any of its assets or properties. For purposes of this Agreement, “Material Contract” shall mean (i) any contract to which the Company is a party that is filed as an exhibit to the SEC Documents and (ii) any contract to which the Company
is a party which is material to the business, properties, financial condition or operating results of the Company, as such business is presently conducted (a “Material Contract”). 
  
 d. No consent, approval, order or authorization of, or registration,
qualification, designation, declaration or filing with, any federal, state or local governmental authority on the part of the Company is required in connection with the consummation of the transactions contemplated by this Agreement, except (i) the
filing pursuant to Regulation D promulgated by the Securities and Exchange Commission under the Securities Act, which filing will be effected within 15 days of the sale of the Common Shares hereunder, or such other post-closing filings as may be
required and (ii) such filings and/or qualifications that may be required pursuant to the Nasdaq Marketplace Rules (the “Nasdaq Rules”), which filings and qualifications will be made on a timely basis. 
  
 e. There is no action, suit, proceeding or investigation pending or, to the
Company’s knowledge, currently threatened in writing against the Company that questions the validity of this Agreement or the Registration Rights Agreement, or the right of the Company to enter into such agreements or to consummate the
transactions contemplated hereby or thereby. There is no action, suit, proceeding or investigation pending or, to the knowledge of the Company, currently threatened in writing against the Company or against any executive officer or director of the
Company or against any Significant Subsidiary which would have, either individually or in the aggregate, a material adverse effect on the business, properties, financial condition or operating results of the Company, as such business is presently
conducted. 
  
 f. The Company has filed all forms, reports and
documents required to be filed by it with the SEC since September 18, 2002 through the date of this Agreement (collectively, the “Company SEC Reports”). As of the respective dates they were filed (and if amended or superceded by a
filing prior to the date of this Agreement, then on the date of such filing), (i) the Company SEC Reports complied in all material respects with the requirements of the Securities Act or the Exchange Act, as the case may be, and (ii) none of the
Company SEC Reports contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements made therein, in the light of the circumstances under which they
were made, not misleading. 
  
 g. The consolidated financial
statements (including any notes thereto) contained in the Company SEC Reports were prepared in accordance with United States generally accepted accounting principles applied on a consistent basis throughout the periods indicated (except as may be
indicated in the notes thereto or, in the case of unaudited statements, as permitted by Form 10-Q or 8-K promulgated by the SEC) and each presented fairly, in all material respects, the consolidated financial position of the Company and its
consolidated 
  

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 subsidiaries as of the respective dates thereof and for the respective periods indicated therein, except as otherwise
noted therein (subject, in the case of unaudited statements, to normal and recurring year-end adjustments which were not and are not expected, individually or in the aggregate, to have a material adverse effect on the business, properties, financial
condition or operating results of the Company, as such business is presently conducted). 
  
 h. Since the date of the Company’s most recent quarterly report on Form 10-Q or most recent periodic report on Form 8-K filed with the SEC, (i) there has not been any Company development that has not otherwise
been publicly disclosed that would have a material adverse effect on the business, properties, financial condition or operating results of the Company, as such business is presently conducted, (ii) the Company and its subsidiaries have not incurred
any debts or liabilities except for debts or liabilities incurred in the ordinary course of business and except in connection with obligations under contracts and commitments incurred in the ordinary course of business, (iii) the Company and its
subsidiaries have not entered into or terminated any Material Contract and (iv) there has not been any change in the assets, liabilities, financial condition or operating results of the Company and its subsidiaries from that reflected in the
consolidated financial statements included with the most recent quarterly report on Form 10-Q, except changes in the ordinary course of business that have not been, in the aggregate, materially adverse. 
  
 i. Except as contemplated hereby, the Company has not granted or agreed to
grant any registration rights, including piggy-back rights, to any person or entity. 
  
 j. As of August 31, 2003, the authorized capital stock of the Company consisted of 10,000,000 shares of Preferred Stock, none of which were issued and outstanding, and 200,000,000 shares of Common Stock, 8,975,145
shares of which were issued and outstanding (the “Preferred Stock” and the “Common Stock” are collectively referred to herein as the “Capital Stock”). All of the issued and outstanding shares of
Capital Stock have been duly authorized, validly issued and are fully paid and nonassessable. The Company has options granted and shares available under the 1999 Stock Incentive Plan, 1999 Director Option Plan, Employee Stock Purchase Plan and 2000
Supplemental Stock Option Plan. In addition, the Company has options outstanding under the 1996 Stock Plan and under the option plans that it assumed in connection with its acquisitions of Entera, Inc and Springbank Networks, Inc. (together with the
1999 Stock Incentive Plan, 1999 Director Option Plan, Employee Stock Purchase Plan and 2000 Supplemental Stock Option Plan, the “Plans”). As of August 31, 2003, options to purchase 2,545,131 shares of Common Stock were outstanding under
the Plans and, in addition to the aforementioned options, the Company has reserved an additional 2,267,065 shares of its Common Stock for purchase upon exercise of options to be granted in the future under the Plans. Since August 31, 2003, (i) all
shares of Common Stock issued by the Company have been pursuant to option exercises under the Plans and (ii) neither the Company’s Board of Directors nor the Company’s stockholders have voted to increase the number of shares of Common
Stock available for issuance under the Plans. There has been no material change in the capitalization of the Company from August 31, 2003 to the date of this Agreement. There are not outstanding any rights of first refusal or preemptive rights with
respect to the issuance by the Company of the Common Shares hereunder. 
  

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 k. The Common Shares that are being purchased by the Investors hereunder, when issued, sold or delivered
in accordance with the terms hereof, for the consideration expressed herein, will be duly and validly issued, fully paid and nonassessable and will be free of any liens and encumbrances created by the Company and, subject to the accuracy of the
representations of each Investor in this Agreement, will be issued in compliance with (and the offer, sale and issuance of the Common Shares are exempt from the registration requirements of) all applicable federal and state securities laws.

  
 l. The Company’s Common Stock is registered pursuant to
Section 12(g) of the Exchange Act and is listed on Nasdaq, and the Company has taken no action with the intention of, or likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act or delisting the Common
Stock from Nasdaq. The Company has not been notified by Nasdaq of any action or potential action by Nasdaq or of any violation of any Nasdaq Rules that could result in the delisting of the Company’s Common Stock from Nasdaq. 
  
 m. The Company has not taken and will not take any action outside the
ordinary course of business designed to or that might reasonably be expected to cause or result in unlawful manipulation of the price of the Common Stock to facilitate the sale or resale of the Common Shares. 
  
 n. To its knowledge (with respect to patents, trademarks, service marks and
trade names only), the Company has sufficient title and ownership of all patents, trademarks, service marks, trade names, domain names, copyrights, trade secrets, information, proprietary rights and processes (“IP Rights”) necessary
for its business as presently conducted without any violation or infringement of the rights of others, except for any such violation or infringement the occurrence of which would not have a material adverse effect on the business, properties,
financial condition or operating results of the Company, as such business is presently conducted. The Company and its subsidiaries have not received written notice from a third party that the Company’s or the subsidiary’s products infringe
on the third party’s IP Rights. 
  
 o. Prior to the date of
this Agreement, the Board of Directors has (a) determined that this Agreement is fair to, advisable and in the best interests of the Company and the stockholders of the Company and (b) approved the transactions contemplated by this Agreement. The
foregoing action taken by the Board of Directors constitutes approval of the transactions contemplated by this Agreement for purposes of Section 203 of the Delaware General Corporation Law (“DGCL”) such that Section 203 of the DGCL
does not apply to this Agreement or the transactions effected hereunder, and such approval has not been amended, rescinded or modified. 
  
 4. Representations and Warranties of the Investors. Each Investor, severally and not jointly, hereby represents and warrants to the Company on the
date hereof, and agrees with the Company, as follows: 
  
 a.
Each Investor understands that no United States federal or state agency has passed on, reviewed or made any recommendation or endorsement of the Common Shares. 
  

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 b. Each Investor has full power and authority to enter into this Agreement and the Registration Rights
Agreement, and such agreements constitute valid and legally binding obligations, enforceable in accordance with their respective terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general
application affecting enforcement of creditors’ rights generally and (ii) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies. 
  
 c. This Agreement is made with each Investor in reliance upon such
Investor’s representation to the Company, which by such Investor’s execution of this Agreement such Investor hereby confirms, that the Common Shares to be received by such Investor (the “Securities”) will be acquired for
investment for such Investor’s own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and that such Investor has no present intention of selling, granting any participation in, or
otherwise distributing the same. By executing this Agreement, such Investor further represents that such Investor does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations to such
person or to any third person, with respect to any of the Securities. 
  
 d. Each Investor is an investor in securities of companies in the development stage and acknowledges that it can bear the economic risk of its investment, and has such knowledge and experience in financial or business matters that it is
capable of evaluating the merits and risks of the investment in the Common Shares. Each Investor also represents it has not been organized for the purpose of acquiring the Common Shares. 
  
 e. Each Investor is an “accredited investor” within the meaning of SEC Rule 501(a) of Regulation D, as presently
in effect. 
  
 f. Each Investor understands that the Common
Shares are being offered and sold in reliance on a transactional exemption from the registration requirements of Federal and state securities laws and that the Company is relying upon the truth and accuracy of the representations, warranties,
agreements, acknowledgments and understandings of each Investor set forth herein in order to determine the applicability of such exemptions and the suitability of each Investor to acquire the Common Shares. 
  
 g. Each Investor understands that the Securities it is purchasing are
characterized as “restricted securities” under the federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that under such laws and applicable regulations such
securities may be resold without registration under the Securities Act, only in certain limited circumstances. In this connection, each Investor represents that it is familiar with SEC Rule 144, as presently in effect, and understands the resale
limitations imposed thereby and by the Securities Act. 
  
 h.
Without in any way limiting the representations set forth above, each Investor further agrees not to make any disposition of all or any portion of the Securities unless and until the transferee has agreed in writing for the benefit of the Company to
be bound 
  

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 by the provisions of this Section 4(h) provided and to the extent such provisions are then applicable, and: 

 
 (1) There is then in effect a Registration Statement under the
Securities Act covering such proposed disposition and such disposition is made in accordance with such Registration Statement; or 
  
 (2) (i) Such Investor shall have notified the Company of the proposed disposition and shall have furnished the Company with a detailed statement of the
circumstances surrounding the proposed disposition, and (ii) if reasonably requested by the Company, such Investor shall have furnished the Company with an opinion of counsel, reasonably satisfactory to the Company, that such disposition will not
require registration of such shares under the Securities Act. It is agreed that the Company will not require opinions of counsel for transactions made pursuant to Rule 144 except in unusual circumstances. 
  
 i. It is understood that the certificates evidencing the Securities will
bear the following legends: 
  
 “These securities have not
been registered under the Securities Act of 1933, as amended. They may not be sold, offered for sale, pledged or hypothecated in the absence of a registration statement in effect with respect to the securities under such Act or an opinion of counsel
satisfactory to the Company that such registration is not required or unless sold pursuant to Rule 144 of such Act.” 
  
 j. The execution, delivery and performance of this Agreement and the Registration Rights Agreement, and the consummation by each Investor of the
transactions contemplated hereby and thereby do not and will not (i) result in a violation of such Investor’s charter documents or bylaws or (ii) conflict with any material agreement, indenture or instrument to which such Investor is a party or
(iii) result in a violation of any order, judgment or decree of any court or governmental agency applicable to such Investor or, to such Investor’s knowledge, of any law, rule, or regulation. Investor is either not required to obtain any
consent or authorization of any governmental agency, or shall have obtained any such consent or authorization prior to the Closing, in order for such Investor to perform its obligations under this Agreement or the Registration Rights Agreement.

  
 k. Each Investor understands that nothing in the Agreement or
the Registration Rights Agreement or any other materials presented to the Investors in connection with the purchase and sale of the Common Shares constitutes legal, tax or investment advice. Each Investor has consulted such legal, tax and investment
advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase of the Common Shares. 
  
 5. Covenants. 
  
 a. The Company covenants and agrees with each Investor that for so long as any of the Common Shares are outstanding, the Company will use its
commercially reasonable efforts to cause its Common Stock to continue to be registered under Sections 12(b) 
  

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 or 12(g) of the Exchange Act, will comply in all respects with its reporting and filing obligations under said act, and
will not take any action or file any document (whether or not permitted by the Act or the Exchange Act or the rules thereunder) to terminate or suspend its reporting and filing obligations under said acts, except as permitted herein or pursuant to
the Registration Rights Agreement. For so long as any of the Common Shares are outstanding, the Company will use its commercially reasonable efforts to continue the listing or trading of its Common Stock on Nasdaq or on a national securities
exchange (as defined in the Exchange Act) and will comply in all respects with the Company’s reporting, filing and other obligations under the rules of Nasdaq. Notwithstanding the foregoing, the provisions of this subsection shall not in any
way restrict the Company’s ability to negotiate and consummate the consolidation, reorganization or merger of the Company with or into any other corporation or corporations or the sale, conveyance, or other disposition of all or substantially
all of the Company’s property or business. 
  
 b. Each
Investor covenants and agrees, severally and not jointly, with the Company that neither Investor nor any of Investor’s affiliates nor any person acting on its or their behalf will at any time offer or sell any Common Shares other than pursuant
to registration under the Securities Act or pursuant to an available exemption therefrom. 
  
 c. The covenants contained in this Section 5 shall terminate upon the consummation of any consolidation, reorganization or merger of the Company with or into any other corporation or corporations or the sale,
conveyance, or other disposition of all or substantially all of the Company’s property or business if as a result of that transaction the Company’s voting equity holders hold less than a majority of the voting equity of the successor or
acquiror. 
  
 6. Conditions Precedent to Investors’
Obligations. The obligations of each Investor under Section 1 of this Agreement are subject to the fulfillment on or before the Closing of each of the following conditions, unless such condition or conditions are expressly waived in writing by
the Majority Investors: 
  
 a. The representations and
warranties of the Company contained in Section 3 shall be true in all material respects on and as of the Closing as though such representations and warranties had been made on and as of the date of such Closing, except for representations and
warranties made as of a particular date, which shall be true and correct as of such date. 
  
 b. The Company shall have performed and complied in all material respects with all agreements, obligations and conditions contained in this Agreement that are required to be performed or complied with by it on or
before the Closing. 
  
 c. The Chief Executive Officer of the
Company shall deliver to each Investor at the Closing a certificate stating that the conditions specified in Sections 6.a and 6.b have been fulfilled. 
  
 d. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or

  

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 governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions contemplated
by this Agreement. 
  
 e. Each Investor shall have received from
Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, LLP, counsel for the Company, an opinion, dated as of the Closing Date, in substantially the form attached hereto as Exhibit A. 
  
 f. The Company and the Investors shall have entered into that certain
Registration Rights Agreement in substantially the form attached hereto as Exhibit B (the “Registration Rights Agreement”). 
  
 g. The Company shall (a) have filed a listing application with Nasdaq for the Common Shares and (b) continue to have its shares of Common Stock listed
for trading on Nasdaq. 
  
 7. Conditions Precedent to the
Company’s Obligations. The obligations of the Company to each Investor under this Agreement are subject to the fulfillment on or before the Closing of each of the following conditions by the Investors, unless such condition or conditions
are expressly waived in writing by the Company: 
  
 a. The
representations and warranties of each of the Investors contained in Section 4 shall be true on and as of the Closing in all material respects as though such representations and warranties had been made on and as of the date of such Closing, except
for representations and warranties made as of a particular date, which shall be true and correct as of such date. 
  
 b. Each Investor shall have performed and complied in all material respects with all agreements, obligations and conditions contained in this Agreement
that are required to be performed or complied with by it on or before the Closing. 
  
 c. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction which prohibits
the consummation of any of the transactions contemplated by this Agreement. 
  
 d. Each Investor shall have delivered its respective Purchase Price for the Common Shares. 
  
 8. Fees and Expenses. The Company shall pay all costs and expenses that it incurs with respect to the negotiation, execution, delivery and
performance of the Agreement and the transactions contemplated hereby. The Company shall, at the Closing, reimburse the reasonable and documented fees and expenses of special counsel for the Investors, incurred directly in connection with this
Agreement and the transactions contemplated hereby, up to a maximum of $15,000. 
  
 9. Survival of the Representations, Warranties, etc. The respective representations, warranties, and agreements made herein by or on behalf of the parties hereto 
  

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 shall remain in full force and effect for a period of one (1) year from the Closing Date, regardless of any investigation
made by or on behalf of any party to this Agreement or any officer, director or employee of, or person controlling or under common control with, such party and will survive delivery of and payment for the Common Shares; provided, however, that
Sections 5.a and 5.b shall survive until such Common Shares are no longer held by such Investors. 
  
 10. Notices. All notices, requests, consents and other communications hereunder shall be in writing; shall be mailed (a) if within the domestic
United States, by first-class registered or certified airmail, by nationally recognized overnight express courier, postage prepaid, or by facsimile or (b) if delivered to or from outside the United States, by International Federal Express or
facsimile; shall be deemed given: (i) if delivered by first-class registered or certified mail domestic, three business days after so mailed, (ii) if delivered by nationally recognized overnight carrier, one business day after so mailed, (iii) if
delivered by International Federal Express, two business days after so mailed or (iv) if delivered by facsimile, upon electronic confirmation of receipt; and shall be delivered as addressed as follows: 
  
 a. if to the Company, to: 
  
     Blue Coat Systems, Inc. 
     650 Almanor Avenue 
     Sunnyvale, CA 94085 
     Attn: Brian NeSmith 
     Chief Executive Officer 
     Phone: (408) 220-2200 
     Telecopy: (408) 220-2250 
  
 b. with a copy mailed to: 
  
      Gunderson Dettmer Stough Villeneuve Franklin
& Hachigian, LLP 
      155 Constitution Drive 
      Menlo Park, California 94025 
      Attn: Daniel E. O’Connor, Esq. 
      Phone:
(650) 321-2400 
      Telecopy: (650) 321-2800 
  
 c. if to the Investors, at the addresses set forth on Schedule A hereto, or at such other address or addresses as may be
furnished to the Company in writing. 
  
 11. Miscellaneous.

  
 a. This Agreement may be executed in two or more
counterparts and it is not necessary that signatures of all parties appear on the same counterpart, but such counterparts together shall constitute one and the same agreement. 
  
 b. Any provision of this Agreement may be amended, waived or modified only upon the written consent of the Company and the
Majority Investors. Any 
  

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 amendment or waiver affected in accordance with this Section 11.b shall be binding upon each Investor and the Company.

  
 c. This Agreement shall inure to the benefit of and be
binding upon the parties hereto and their respective successors and assigns. 
  
 d. This Agreement shall be governed by, and construed in accordance with, the internal laws of the State of California without regard to principles of conflict of laws. 
  
 e. The provisions of this Agreement are severable, and if any clause or
provision hereof shall be held invalid, illegal or unenforceable in whole or in part, such invalidity or unenforceability shall not in any manner affect any other clause or provision of this Agreement. 
  
 f. The headings of the sections of this document have been inserted for
convenience of reference only and shall not be deemed to be a part of this Agreement. 
  
 g. This Agreement and the Registration Rights Agreement constitute the entire agreement and supersede all prior agreements and understandings, both written and oral, between the parties hereto with respect to the
subject matter of this Agreement and is not intended to confer upon any person other than the parties hereto any rights or remedies hereunder. 
  
 h. Notwithstanding any provision of this Agreement to the contrary, any confidential disclosure agreement previously executed by the Company and any
Investor in connection with the transactions contemplated by this Agreement shall remain in full force and effect in accordance with its terms following the execution of this Agreement and the consummation of the transactions contemplated hereby.

  
 i. Notwithstanding any provision of this Agreement to the
contrary, any party to this Agreement (and any of such party’s respective employees, representatives, or other agents) may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of the transactions
contemplated by this Agreement and all materials of any kind (including opinions or other tax analyses) that are provided to it relating to such tax treatment and tax structure; provided however, that for this purpose, (a) the “tax
treatment” of a transaction means the purported or claimed federal income tax treatment of the transaction and (b) the “tax structure” of a transaction means any fact that may be relevant to understanding the purported or claimed
federal income tax treatment of the transaction. 
  
 j. The
Company will provide the Investors and their counsel with a copy of any proposed announcement of, or Form 8-K regarding, this transaction and a reasonable opportunity to review and comment on any such materials. 
  

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 IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Common Stock Purchase
Agreement, all as of the day and year first above written. 
  

	 BLUE COAT SYSTEMS, INC.

	  
  

	 By: Brian NeSmith

	 Title: President and Chief Executive Officer

	
	 650 Almanor Avenue

	 Sunnyvale, CA 94085

  
  
  
 SIGNATURE PAGE TO THE BLUE COAT SYSTEMS, INC. 
 COMMON STOCK PURCHASE AGREEMENT 

	INVESTORS:
	
	SPROUT ENTREPRENEURS FUND, L.P.
	 By:
	 	 DLJ Capital Corporation

	 Its:
	 	 General Partner

	  
  

	 By:
	 	 Robert Finzi

	 Its:
	 	 Managing Director

  

	 Address:
	  	 3000 Sand Hill Road

	 	  	 Building 3, Suite 170

	 	  	 Menlo Park, CA 94025

  

	SPROUT CAPITAL IX, L.P.
	 By:
	 	 DLJ Capital Corporation

	 Its:
	 	 Managing General Partner

	  
  

	 By:
	 	 Robert Finzi

	 Its:
	 	 Managing Director

  

	 Address:
	  	 3000 Sand Hill Road

	 	  	 Building 3, Suite 170

	 	  	 Menlo Park, CA 94025

  

	DLJ CAPITAL CORPORATION
	  
  

	 By:
	 	 Robert Finzi

	 Its:
	 	 Managing Director

  

	 Address:
	  	 3000 Sand Hill Road

	 	  	 Building 3, Suite 170

	 	  	 Menlo Park, CA 94025

  

	JAY SHIVELEY
		
	 By:
	 	  

	 Name:
	 	 Jay Shiveley

  

	 Address:
	  	 c/o Sprout Group

	 	  	 3000 Sand Hill Road

	 	  	 Building 3, Suite 170

	 	  	 Menlo Park, CA 94025

  
  
  
 SIGNATURE PAGE TO THE BLUE COAT SYSTEMS, INC. 
 COMMON STOCK PURCHASE AGREEMENTRegistration Rights Agreement

 Exhibit 10.2 
  
 BLUE COAT SYSTEMS, INC. 
  
 REGISTRATION RIGHTS AGREEMENT 
  
 September 18, 2003 

 TABLE OF CONTENTS 
  

	 	  	Page

	 1. Registration Rights
	  	1
	 1.1 Definitions
	  	1
	 1.2 Company Registration
	  	2
	 1.3 Obligations of the Company
	  	3
	 1.4 Information from Holder
	  	5
	 1.5 Expenses of Registration
	  	5
	 1.6 Delay of Registration
	  	5
	 1.7 Indemnification
	  	5
	 1.8 Reports Under the 1934 Act
	  	7
	 1.9 Assignment of Registration Rights
	  	8
	 1.10 Limitations on Subsequent Registration Rights
	  	8
	 1.11 Termination of Registration Rights
	  	8
		
	 2. Miscellaneous
	  	8
	 2.1 Successors and Assigns
	  	8
	 2.2 Governing Law
	  	9
	 2.3 Counterparts
	  	9
	 2.4 Titles and Subtitles
	  	9
	 2.5 Notices
	  	9
	 2.6 Expenses
	  	10
	 2.7 Entire Agreement; Amendments and Waivers
	  	10
	 2.8 Severability
	  	10
	 2.9 Aggregation of Stock
	  	10

  

 i 

 REGISTRATION RIGHTS AGREEMENT 
  
 THIS REGISTRATION RIGHTS AGREEMENT (the “Agreement”) is made as of the 18th day of September, 2003,
by and among Blue Coat Systems, Inc., a Delaware corporation (the “Company”), and the investors listed on Schedule A hereto, each of which is herein referred to as an “Investor.” 
  
 RECITALS 
  
 WHEREAS, the Company and the Investors are parties to the Common Stock
Purchase Agreement of even date herewith (the “Purchase Agreement”); and 
  
 WHEREAS, in order to induce the Investors to purchase Common Stock (the “Common Stock”) and invest funds in the Company pursuant to the Purchase Agreement, the Investors and the Company hereby
agree that this Agreement shall govern the rights of the Investors to cause the Company to register shares of Common Stock issued to them and certain other matters as set forth herein; 
  
 NOW, THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS: 
  
 1. Registration Rights. The Company covenants and agrees as follows: 
  
 1.1 Definitions. For purposes of this Section 1: 
  
 (a) The term “Act” means the Securities Act of 1933, as amended.

  
 (b) The term “Form S-4” means such form under the
Act as in effect on the date hereof or any successor registration form under the Act subsequently adopted by the SEC. 
  
 (c) The term “Holder” means any person owning or having the right to acquire Registrable Securities or any assignee thereof in accordance with
Section 1.9 hereof. 
  
 (d) The term “1934 Act” means
the Securities Exchange Act of 1934, as amended. 
  
 (e) The
terms “register,” “registered,” and “registration” refer to a registration effected by preparing and filing a registration statement or similar document in compliance with the Act, and the declaration or ordering of
effectiveness of such registration statement or document. 
  
 (f)
The term “Other Registrable Securities” means any securities of the Company (i) that are issued by the Company in connection with a financing, merger or acquisition transaction occurring subsequent to the date of the Purchase Agreement

 and (ii) that have been granted registration rights by the Company in connection with such transaction. 
  
 (g) The term “Registrable Securities” means (i) the Common Stock
sold pursuant to the Purchase Agreement and (ii) any Common Stock of the Company issued as (or issuable upon the conversion or exercise of any warrant, right or other security that is issued as) a dividend or other distribution with respect to, or
in exchange for, or in replacement of, the shares referenced in (i) above, excluding in all cases, however, any Registrable Securities sold by a person in a transaction in which his rights under this Section 1 are not assigned. 
  
 (h) The number of shares of “Registrable Securities” outstanding
shall be determined by the number of shares of Common Stock outstanding that are, and the number of shares of Common Stock issuable pursuant to then exercisable or convertible securities that are, Registrable Securities. 
  
 (i) The term “Rule 144” shall mean Rule 144 under the Act.

  
 (j) The term “Rule 144(k)” shall mean subsection
(k) of Rule 144 under the Act. 
  
 (k) The term “SEC”
shall mean the Securities and Exchange Commission. 
  
 1.2
Company Registration. 
  
 (a) If (but without any
obligation to do so) the Company proposes to register (including for this purpose a registration effected by the Company for stockholders other than the Holders) any of its stock or other securities under the Act in connection with the public
offering of such securities (other than a registration relating solely to the sale of securities of participants in a Company stock plan, a registration effected on Form S-4 or a registration on any form that does not include substantially the same
information as would be required to be included in a registration statement covering the sale of the Registrable Securities), the Company shall, at such time, give each Holder written notice of such registration. Upon the written request of each
Holder given within twenty (20) days after mailing of such notice by the Company in accordance with Section 2.5, the Company shall, subject to the provisions of Section 1.2(c), use all commercially reasonable efforts to cause to be registered under
the Act all of the Registrable Securities that each such Holder requests to be registered. 
  
 (b) Right to Terminate Registration. The Company shall have the right to terminate or withdraw any registration initiated by it under this Section 1.2 prior to the effectiveness of such registration whether or
not any Holder has elected to include securities in such registration. The expenses of such withdrawn registration shall be borne by the Company in accordance with Section 1.5 hereof. 
  
 (c) Underwriting Requirements. In connection with any offering involving an underwriting of shares of the
Company’s capital stock, the Company shall not be required under this Section 1.2 to include any of the Holders’ securities in such underwriting unless they accept the terms of the underwriting as agreed upon between the 
  

 2 

 Company and the underwriters selected by the Company (or by other persons entitled to select the underwriters) and enter
into an underwriting agreement in customary form with such underwriters, and then only in such quantity as the underwriters determine in their sole discretion will not jeopardize the success of the offering by the Company. If the total amount of
securities, including Registrable Securities, requested by stockholders to be included in such offering exceeds the amount of securities sold other than by the Company that the underwriters determine in their sole discretion is compatible with the
success of the offering, then the Company shall be required to include in the offering only that number of such securities, including Registrable Securities, that the underwriters determine in their sole discretion will not jeopardize the success of
the offering. In no event shall any Registrable Securities (together with any Other Registrable Securities) be excluded from such offering unless all other stockholders’ securities (other than Other Registrable Securities) have been first
excluded. In the event that the underwriters determine that less than all of the Registrable Securities requested to be registered can be included in such offering, then the Registrable Securities that are included in such offering shall be
apportioned pro rata among the selling Holders based on the number of Registrable Securities held by all selling Holders or in such other proportions as shall mutually be agreed to by all such selling Holders. Notwithstanding the foregoing, in no
event shall the amount of Registrable Securities (together with any Other Registrable Securities) included in the offering be reduced below twenty percent (20%) of the total amount of securities included in such offering. For purposes of the
preceding sentence concerning apportionment, for any selling stockholder that is a Holder of Registrable Securities and that is a venture capital fund, partnership or corporation, the affiliated venture capital funds, partners, retired partners and
stockholders of such Holder, or the estates and family members of any such partners and retired partners and any trusts for the benefit of any of the foregoing persons shall be deemed to be a single “selling Holder,” and any pro rata
reduction with respect to such “selling Holder” shall be based upon the aggregate amount of Registrable Securities owned by all such related entities and individuals. 
  
 1.3 Obligations of the Company. Whenever required under this Section 1 to effect the registration of any Registrable
Securities, the Company shall, as expeditiously as reasonably possible: 
  
 (a) prepare and file with the SEC a registration statement with respect to such Registrable Securities and use all commercially reasonable efforts to cause such registration statement to become effective, and, upon
the request of the Holders of a majority of the Registrable Securities registered thereunder, keep such registration statement effective for a period of up to sixty (60) days or, if earlier, until the distribution contemplated in the Registration
Statement has been completed; provided, however, that if the Company has agreed to maintain the effectiveness of such registration statement for a longer period of time for any other stockholder of the Company, such registration statement shall
remain effective for such longer period. 
  
 (b) prepare and file
with the SEC such amendments and supplements to such registration statement and the prospectus used in connection with such registration statement as may be necessary to comply with the provisions of the Act with respect to the disposition of all
securities covered by such registration statement; 
  

 3 

 (c) furnish to the Holders such number of copies of a prospectus, including a preliminary prospectus, in
conformity with the requirements of the Act, and such other documents as they may reasonably request in order to facilitate the disposition of Registrable Securities owned by them; 
  
 (d) use all commercially reasonable efforts to register and qualify the securities covered by such registration statement
under such other securities or Blue Sky laws of such jurisdictions as shall be reasonably requested by the Holders, provided that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business or to
file a general consent to service of process in any such states or jurisdictions; 
  
 (e) in the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and customary form, with the managing underwriter of such offering; 
  
 (f) notify each Holder of Registrable Securities covered by such
registration statement at any time when a prospectus relating thereto is required to be delivered under the Act of the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, includes an
untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing; 
  
 (g) cause all such Registrable Securities registered pursuant to this
Section 1 to be listed on each securities exchange and trading system on which similar securities issued by the Company are then listed; and 
  
 (h) provide a transfer agent and registrar for all Registrable Securities registered pursuant hereunder and a CUSIP number for all such Registrable
Securities, in each case not later than the effective date of such registration. 
  
 Notwithstanding the provisions of this Section 1, the Company shall be entitled to postpone or suspend the filing, effectiveness or use of, or trading under, any registration statement if the Company shall determine
that any such filing or the sale of any securities pursuant to such registration statement would in the good faith judgment of the Board of Directors of the Company require disclosure of material nonpublic information that, if disclosed at such
time, would be materially harmful to the interests of the Company and its stockholders; provided, however, that during any such period all executive officers, directors and other stockholders of the Company with similar registration
rights are also prohibited from selling securities of the Company; provided further, however, that such postponement or suspension (i) shall not exceed a period of ninety (90) days and (ii) shall be exercised by the Company not more
than once in any twelve (12)-month period. 
  
 In the event of the
suspension of effectiveness of any registration statement pursuant to this Section 1.3, the applicable time period during which such registration statement is to remain effective shall be extended by that number of days equal to the number of days
the effectiveness of such registration statement was suspended. 
  

 4 

 1.4 Information from Holder. It shall be a condition precedent to the obligations of the Company
to take any action pursuant to this Section 1 with respect to the Registrable Securities of any selling Holder that such Holder shall furnish to the Company such information regarding itself, the Registrable Securities held by it, and the intended
method of disposition of such securities as shall be reasonably required to effect the registration of such Holder’s Registrable Securities. 
  
 1.5 Expenses of Registration. All expenses, other than (i) underwriting discounts and commissions relating to the Registrable Securities that are
being sold by the Holders and (ii) fees of any counsel for the selling Holders, that are incurred in connection with registrations, filings or qualifications pursuant to Section 1.2, including (without limitation) all registration, filing and
qualification fees, printers’ and accounting fees, fees and disbursements of counsel for the Company shall be borne by the Company. 
  
 1.6 Delay of Registration. No Holder shall have any right to obtain or seek an injunction restraining or otherwise delaying any such registration
as the result of any controversy that might arise with respect to the interpretation or implementation of this Section 1. 
  
 1.7 Indemnification. In the event any Registrable Securities are included in a registration statement under this Section 1: 
  
 (a) To the extent permitted by law, the Company will indemnify and hold
harmless each Holder, the partners, officers, directors and stockholders of each Holder, legal counsel and accountants for each Holder, any underwriter (as defined in the Act) for such Holder and each person, if any, who controls such Holder or
underwriter within the meaning of the Act or the 1934 Act, against any losses, claims, damages or liabilities (joint or several) to which they may become subject under the Act, the 1934 Act, any state securities laws or any rule or regulation
promulgated under the Act, insofar as such losses, claims, damages, or liabilities (or actions in respect thereof) arise out of or are based upon any of the following statements, omissions or violations (collectively a “Violation”): (i)
any untrue statement or alleged untrue statement of a material fact contained in such registration statement, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto, (ii) the omission or
alleged omission to state in such registration statement a material fact required to be stated therein, or necessary to make the statements therein not misleading or (iii) any violation or alleged violation by the Company of the Act, the 1934 Act,
any state securities laws or any rule or regulation promulgated under the Act, the 1934 Act or any state securities laws, and the Company will reimburse each such Holder, underwriter, controlling person or other aforementioned person for any legal
or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action as such expenses are incurred; provided, however, that the indemnity agreement contained in this subsection
l.7(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be
liable to a person claiming indemnification in any such case for any such loss, claim, damage, liability or action to the extent that it arises out of or is based upon a Violation that occurs in reliance upon and in conformity with written
information furnished expressly for use in connection with such 
  

 5 

 registration by such Holder, underwriter, controlling person or other aforementioned person that is claiming
indemnification; provided further, however, that the foregoing indemnity agreement with respect to any preliminary prospectus shall not inure to the benefit of any such Holder or underwriter or other aforementioned person, or any person controlling
such Holder or underwriter, from whom the person asserting any such losses, claims, damages or liabilities purchased shares in the offering, if a copy of the most current prospectus was not sent or given by or on behalf of such Holder or underwriter
or other aforementioned person to such person, if required by law to have been so delivered, at or prior to the written confirmation of the sale of the shares to such person, and if the prospectus (as so amended or supplemented) would have cured the
defect giving rise to such loss, claim, damage or liability. 
  
 (b) To the extent permitted by law, each selling Holder will indemnify and hold harmless the Company, each of its directors, each of its officers who has signed the registration statement, each person, if any, who controls the Company
within the meaning of the Act, legal counsel and accountants for the Company, any underwriter, any other Holder selling securities in such registration statement and any controlling person of any such underwriter or other Holder, against any losses,
claims, damages or liabilities (joint or several) to which any of the foregoing persons may become subject, under the Act, the 1934 Act, any state securities laws or any rule or regulation promulgated under the Act, the 1934 Act or any state
securities laws, insofar as such losses, claims, damages or liabilities (or actions in respect thereto) arise out of or are based upon any Violation, in each case to the extent (and only to the extent) that such Violation occurs in reliance upon and
in conformity with written information furnished by such Holder expressly for use in connection with such registration; and each such Holder will reimburse any person intended to be indemnified pursuant to this subsection l.7(b) for any legal or
other expenses reasonably incurred by such person in connection with investigating or defending any such loss, claim, damage, liability or action as such expenses are incurred; provided, however, that the indemnity agreement contained in this
subsection l.7(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Holder (which consent shall not be unreasonably withheld), and provided
that in no event shall any indemnity under this subsection l.7(b) exceed the net proceeds from the offering received by such Holder. 
  
 (c) Promptly after receipt by an indemnified party under this Section 1.7 of notice of the commencement of any action (including any governmental
action), such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 1.7, deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying party shall
have the right to participate in and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however,
that an indemnified party (together with all other indemnified parties that may be represented without conflict by one counsel) shall have the right to retain one separate counsel, with the fees and expenses to be paid by the indemnifying party, if
representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such
proceeding. The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action, if prejudicial to its ability to defend such action, shall relieve such indemnifying party of liability to

  

 6 

 the indemnified party under this Section 1.7 to the extent of such prejudice, but the omission to so deliver written
notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party otherwise than under this Section 1.7. 
  
 (d) If the indemnification provided for in this Section 1.7 is held by a court of competent jurisdiction to be unavailable to an indemnified party with
respect to any loss, liability, claim, damage or expense referred to herein, then the indemnifying party, in lieu of indemnifying such indemnified party hereunder, shall contribute to the amount paid or payable by such indemnified party as a result
of such loss, liability, claim, damage or expense in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and the indemnified party on the other hand in connection with the statements or omissions
that resulted in such loss, liability, claim, damage or expense, as well as any other relevant equitable considerations; provided, however, that no contribution by any Holder, when combined with any amounts paid by such Holder pursuant to Section
1.7(b), shall exceed the net proceeds from the offering received by such Holder. The relative fault of the indemnifying party and the indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information
and opportunity to correct or prevent such statement or omission. 
  
 (e) Notwithstanding the foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered into by any Holder claiming indemnification in connection with an underwritten public
offering are in conflict with the foregoing provisions, the provisions in the underwriting agreement shall control with respect to such Holder. 
  
 (f) The obligations of the Company and Holders under this Section 1.7 shall survive the completion of any offering of Registrable Securities in a
registration statement under this Section 1 and otherwise. 
  
 1.8 Reports Under the 1934 Act. With a view to making available to the Holders the benefits of Rule 144 and any other rule or regulation of the SEC that may at any time permit a Holder to sell securities of the Company to the public
without registration, the Company agrees to: 
  
 (a) make and
keep public information available, as those terms are understood and defined in Rule 144, at all times after the date of this Agreement; 
  
 (b) file with the SEC in a timely manner all reports and other documents required of the Company under the Act and the 1934 Act; and 
  
 (c) furnish to any Holder, so long as the Holder owns any Registrable
Securities, forthwith upon request (i) a written statement by the Company that it has complied with the reporting requirements of Rule 144, (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents
so filed by the Company, 
  

 7 

 and (iii) such other information as may be reasonably requested to avail any Holder of any rule or regulation of the SEC
that permits the selling of any such securities without registration. 
  
 1.9 Assignment of Registration Rights. The rights to cause the Company to register Registrable Securities pursuant to this Section 1 may be assigned (but only with all related obligations) by a Holder to a transferee or assignee of
such securities that (i) is a subsidiary, parent, partner, limited partner, retired partner or stockholder of a Holder, (ii) is a Holder’s family member or trust for the benefit of an individual Holder, or (iii) after such assignment or
transfer, holds at least 250,000 shares of Registrable Securities (subject to appropriate adjustment for stock splits, stock dividends, combinations or the like), provided: (a) the Company is, within a reasonable time after such transfer, furnished
with written notice of the name and address of such transferee or assignee and the securities with respect to which such registration rights are being assigned; (b) such transferee or assignee agrees in writing to be bound by and subject to the
terms and conditions of this Agreement; and (c) such assignment shall be effective only if immediately following such transfer the further disposition of such securities by the transferee or assignee is restricted under the Act. 
  
 1.10 Limitations on Subsequent Registration Rights. From and after
the date of this Agreement, the Company shall not, without the prior written consent of the Holders of a majority of the Registrable Securities, enter into any agreement with any holder or prospective holder of any securities of the Company that
would allow such holder or prospective holder to receive registration rights that are senior to the registration rights held by the Holders. For avoidance of doubt, and other than with respect to a registration relating solely to the sale of
securities of participants in a Company stock plan, a registration effected on Form S-4 or a registration on any form that does not include substantially the same information as would be required to be included in a registration statement covering
the sale of the Registrable Securities, registration rights that allow a holder or prospective holder of securities of the Company to register any securities of the Company, or include any securities of the Company in a registered offering, without
affording a pari passu right of registration or inclusion to the Holders shall be deemed to be registration rights senior to the registration rights held by the Holders. 
  
 1.11 Termination of Registration Rights. No Holder shall be entitled to exercise any right provided for in this
Section 1 (i) after three (3) years following the date of this Agreement, (ii) as to any Holder, such earlier time after the date of this Agreement during which such Holder (A) can sell all shares held by it in compliance with Rule 144(k) or (B)
holds one percent (1%) or less of the Company’s outstanding Common Stock and all Registrable Securities held by such Holder (together with any affiliate of the Holder with whom such Holder must aggregate its sales under Rule 144) can be sold in
any three (3)-month period without registration in compliance with Rule 144 or (iii) after such time at which such Holder receives freely-tradable securities in connection with any consolidation, reorganization or merger of the Company with or into
any other corporation or corporations or a sale, conveyance, or other disposition of all or substantially all of the Company’s property or business. 
  
 2. Miscellaneous. 
  
 2.1 Successors and Assigns. Except as otherwise provided herein, the terms and conditions of this Agreement shall inure to the benefit of and be
binding upon the 
  

 8 

 respective successors and assigns of the parties (including transferees of any shares of Registrable Securities). Nothing
in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as
expressly provided in this Agreement. 
  
 2.2 Governing
Law. This Agreement shall be governed by and construed under the laws of the State of California as applied to agreements among California residents entered into and to be performed entirely within California. 
  
 2.3 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
  
 2.4 Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing
or interpreting this Agreement. 
  
 2.5 Notices. All
notices, requests, consents and other communications hereunder shall be in writing; shall be mailed (a) if within the domestic United States, by first-class registered or certified airmail, by nationally recognized overnight express courier, postage
prepaid, or by facsimile or (b) if delivered to or from outside the United States, by International Federal Express or facsimile; shall be deemed given: (i) if delivered by first-class registered or certified mail domestic, three business days after
so mailed, (ii) if delivered by nationally recognized overnight carrier, one business day after so mailed, (iii) if delivered by International Federal Express, two business days after so mailed or (iv) if delivered by facsimile, upon electric
confirmation of receipt; and shall be delivered as addressed as follows: 
  
 (a) if to the Company, to: 
  
       Blue Coat Systems, Inc. 
       650 Almanor Avenue 
       Sunnyvale, CA 94085 
       Attn: Brian NeSmith 
       Chief
Executive Officer 
       Phone: (408) 220-2200 
       Telecopy: (408) 220-2250 
  
 (b) with a copy mailed to: 
  
       Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, LLP 
       155 Constitution Drive 
       Menlo Park, California 94025 
       Attn:
Daniel E. O’Connor, Esq. 
       Phone: (650) 321-2400 
       Telecopy: (650) 321-2800 
  

 9 

 (c) if to the Investors, at the addresses set forth on Schedule A hereto, or at such other address or
addresses as may have been furnished to the Company in writing. 
  
 2.6 Expenses. If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and necessary disbursements in
addition to any other relief to which such party may be entitled. 
  
 2.7 Entire Agreement; Amendments and Waivers. This Agreement constitutes the full and entire understanding and agreement among the parties with regard to the subjects hereof. Any term of this Agreement may be amended and the
observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively) only with the written consent of the Company and the holders of a majority of the then-outstanding
Registrable Securities. Any amendment or waiver effected in accordance with this paragraph shall be binding upon each holder of any Registrable Securities, each future holder of all such Registrable Securities, and the Company. Each Holder
acknowledges that by the operation of this Section 2.7, the holders of a majority of the then-outstanding Registrable Securities will have the right and power to diminish or eliminate all rights of such Holder under this Agreement. 
  
 2.8 Severability. If one or more provisions of this Agreement are
held to be unenforceable under applicable law, such provision(s) shall be excluded from this Agreement and the balance of the Agreement shall be interpreted as if such provision(s) were so excluded and shall be enforceable in accordance with its
terms. 
  
 2.9 Aggregation of Stock. All shares of
Registrable Securities held or acquired by affiliated entities (including affiliated venture capital funds) or persons shall be aggregated together for the purpose of determining the availability of any rights under this Agreement. 
  

 10 

 IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first
above written. 
  

	 BLUE COAT SYSTEMS, INC.

	  
  

	 By: Brian NeSmith

	 Title: President and Chief Executive Officer

	
	 650 Almanor Avenue
 Sunnyvale, CA 94085

  
  
  
 SIGNATURE PAGE TO THE BLUE COAT SYSTEMS, INC. 
 REGISTRATION RIGHTS AGREEMENT 

	INVESTORS:
	
	 SPROUT ENTREPRENEURS FUND, L.P.

	 By:
	 	 DLJ Capital Corporation

	 Its:
	 	 General Partner

	  
  

	 By:
	 	 Robert Finzi

	 Its:
	 	 Managing Director

  

	 Address:
	  	 3000 Sand Hill Road

	 	  	 Building 3, Suite 170

	 	  	 Menlo Park, CA 94025

  

	SPROUT CAPITAL IX, L.P.
	 By:
	 	 DLJ Capital Corporation

	 Its:
	 	 Managing General Partner

	  
  

	 By:
	 	 Robert Finzi

	 Its:
	 	 Managing Director

  

	 Address:
	  	 3000 Sand Hill Road

	 	  	 Building 3, Suite 170

	 	  	 Menlo Park, CA 94025

  

	DLJ CAPITAL CORPORATION
	  
  

	 By:
	 	 Robert Finzi

	 Its:
	 	 Managing Director

  

	 Address:
	  	 3000 Sand Hill Road

	 	  	 Building 3, Suite 170

	 	  	 Menlo Park, CA 94025

  

	JAY SHIVELEY
		
	 By:
	 	  

	 Name:
	 	 Jay Shiveley

  

	 Address:
	  	 c/o Sprout Group

	 	  	 3000 Sand Hill Road

	 	  	 Building 3, Suite 170

	 	  	 Menlo Park, CA 94025

  
  
  
 SIGNATURE PAGE TO THE BLUE COAT SYSTEMS, INC. 
 REGISTRATION RIGHTS AGREEMENT

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