Lawson Software (LWSN)

9. Common Stock

        In November of 2006, our Board of Directors approved a share repurchase program of up to $100.0 million of common stock, which was subsequently increased to $200.0 million by the Board of Directors in April 2007. The share repurchases are funded using our existing cash balance and future cash flows and occur through open market purchases, privately negotiated transactions and/or transactions structured through investment banking institutions as permitted by securities laws and other legal requirements. Market conditions influence the timing of the buybacks and the number of shares repurchased. From inception of the repurchase program through May 31, 2008, we used $160.5 million to repurchase 18.0 million shares at an average price of $8.94 per share. The repurchased shares are recorded as treasury stock and result in a reduction to our stockholders equity. The shares will be used for general corporate purposes. As of May 31, 2008, the maximum dollar value of shares that may yet be purchased under this program was $39.5 million. On July 10, 2008, our board of directors increased the maximum authorized for repurchase purposes by an additional $200.0 million, to $400.0 million, increasing the maximum dollar value of shares that may yet be purchased under the program to $239.5 million.

102

LAWSON SOFTWARE, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except share and per share data)

9. Common Stock (Continued)

        Included in the repurchases in fiscal 2008 were 1.1 million shares purchased from the Lawson Family Investment Company, Ltd., an entity affiliated with H. Richard Lawson, founder, co-chairman and a director of the Company. In addition, 2.9 million shares were purchased from Symphony Technology Group, a principal stockholder of the Company. Dr. Romesh Wadhwani is co-chairman and a director of the Company and the founder and managing partner of Symphony Technology Group. These shares were purchased at $9.20 per share.

        In connection with the issuance of our senior convertible notes, we simultaneously entered into agreements with an affiliate of one of the initial purchasers of the senior convertible notes to purchase call options and sell warrants on our common stock (see Note 7, Long-Term Debt and Credit Facilities).

9. Common Stock

        In November of 2006, our Board of Directors approved a share repurchase program of up to $100.0 million of common stock, which was subsequently increased
to $200.0 million by the Board of Directors in April 2007. The share repurchases are funded using our existing cash balance and future cash flows and occur through open market purchases,
privately negotiated transactions and/or transactions structured through investment banking institutions as permitted by securities laws and other legal requirements. Market conditions influence the
timing of the buybacks and the number of shares repurchased. From inception of the repurchase program through May 31, 2008, we used $160.5 million to repurchase 18.0 million
shares at an average price of $8.94 per share. The repurchased shares are recorded as treasury stock and result in a reduction to our stockholders equity. The shares will be used for general corporate
purposes. As of May 31, 2008, the maximum dollar value of shares that may yet be purchased under this program was $39.5 million. On July 10, 2008, our board of directors increased
the maximum authorized for repurchase purposes by an additional $200.0 million, to $400.0 million, increasing the maximum dollar value of shares that may yet be purchased under the
program to $239.5 million.

102

LAWSON SOFTWARE, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except share and per share data)

9. Common Stock (Continued)

        Included
in the repurchases in fiscal 2008 were 1.1 million shares purchased from the Lawson Family Investment Company, Ltd., an entity affiliated with H. Richard Lawson,
founder, co-chairman and a director of the Company. In addition, 2.9 million shares were purchased from Symphony Technology Group, a principal stockholder of the Company.
Dr. Romesh Wadhwani is co-chairman and a director of the Company and the founder and managing partner of Symphony Technology Group. These shares were purchased at $9.20 per share.

        In
connection with the issuance of our senior convertible notes, we simultaneously entered into agreements with an affiliate of one of the initial purchasers of the senior convertible
notes to purchase call options and sell warrants on our common stock (see Note 7, Long-Term Debt and Credit Facilities).