##### 



Exhibit 10.36
 AGREEMENT AND PLAN OF MERGER AND REORGANIZATION
 by and among
 SONICWALL, INC.
 SPECTRUM ACQUISITION CORPORATION
 LASSO LOGIC, INC.
 STEVEN GOODMAN
 and
 SAL SFERLAZZA
 as Principal Stockholders
 and
 STEVEN GOODMAN
 as Stockholder Representative
 November 18, 2005




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TABLE OF CONTENTS
 PageARTICLE 1 DEFINITIONS AND INTERPRETATIONS
    
    
    21.1
    
    
    Certain Definitions
    
    
    21.2
    
    
    Certain Interpretations
    
    
    7ARTICLE 2 THE MERGER
    
    
    82.1
    
    
    The Merger
    
    
    82.2
    
    
    Closing and Effective Time
    
    
    82.3
    
    
    Legal Effect of the Merger
    
    
    92.4
    
    
    Certificate of Incorporation and Bylaws
    
    
    92.5
    
    
    Directors and Officers
    
    
    92.6
    
    
    Capital Stock of Constituent Corporations
    
    
    92.7
    
    
    Determination of Cash Balance
    
    
    132.8
    
    
    Dissenting Shares
    
    
    142.9
    
    
    Surrender of Certificates
    
    
    152.10
    
    
    No Further Ownership Rights in Company Capital Stock
    
    
    162.11
    
    
    Lost, Stolen or Destroyed Certificates
    
    
    162.12
    
    
    Further Assurances
    
    
    16ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND THE PRINCIPAL SHAREHOLDERS
    
    
    163.1
    
    
    Organization
    
    
    173.2
    
    
    Authority
    
    
    173.3
    
    
    Conflicts
    
    
    183.4
    
    
    Consents
    
    
    183.5
    
    
    Company Capital Structure
    
    
    183.6
    
    
    Subsidiaries
    
    
    193.7
    
    
    Company Financial Statements
    
    
    203.8
    
    
    No Undisclosed Liabilities
    
    
    203.9
    
    
    No Changes
    
    
    203.10
    
    
    Taxes
    
    
    203.11
    
    
    Employee Benefit Plans and Compensation
    
    
    233.12
    
    
    Intellectual Property
    
    
    263.13
    
    
    Restrictions on Business Activities
    
    
    303.14
    
    
    Properties
    
    
    303.15
    
    
    Material Contracts
    
    
    313.16
    
    
    Insurance
    
    
    333.17
    
    
    Litigation
    
    
    333.18
    
    
    Governmental Authorization
    
    
    333.19
    
    
    Compliance with Laws
    
    
    343.20
    
    
    Environmental Compliance
    
    
    343.21
    
    
    Interested Party Transactions
    
    
    343.22
    
    
    Minute Books
    
    
    353.23
    
    
    Brokers and Finders Fees
    
    
    353.24
    
    
    Accounts Receivable
    
    
    35
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TABLE OF CONTENTS
(Continued)
 Page3.25
    
    
    Warranties; Indemnities
    
    
    353.26
    
    
    Financial Projections/Operating Plan
    
    
    353.27
    
    
    Banks and Brokerage Accounts
    
    
    353.28
    
    
    Customers and Suppliers
    
    
    363.29
    
    
    Representations Complete
    
    
    36ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB
    
    
    364.1
    
    
    Organization, Standing and Power
    
    
    364.2
    
    
    Authority
    
    
    364.3
    
    
    Consents
    
    
    374.4
    
    
    Brokers and Finders Fees
    
    
    37ARTICLE 5 CONDUCT OF THE COMPANY PRIOR TO THE EFFECTIVE TIME
    
    
    375.1
    
    
    Conduct of Business of the Company
    
    
    375.2
    
    
    No Solicitation
    
    
    40ARTICLE 6 ADDITIONAL AGREEMENTS
    
    
    416.1
    
    
    Stockholder Approval
    
    
    416.2
    
    
    Commercially Reasonable Efforts; Governmental Approvals; Contract Consents
    
    
    416.3
    
    
    Notification of Certain Matters
    
    
    426.4
    
    
    Access to Information
    
    
    426.5
    
    
    Confidentiality
    
    
    436.6
    
    
    Public Disclosure
    
    
    436.7
    
    
    Employment Arrangements
    
    
    436.8
    
    
    Employee Plans
    
    
    436.9
    
    
    Proprietary Information and Inventions Assignment Agreement
    
    
    446.10
    
    
    Spreadsheet
    
    
    446.11
    
    
    Expenses
    
    
    44ARTICLE 7 CONDITIONS TO THE MERGER
    
    
    457.1
    
    
    Conditions to Obligations of Each Party
    
    
    457.2
    
    
    Conditions to the Obligations of Parent and Merger Sub
    
    
    457.3
    
    
    Conditions to Obligations of the Company and the Principal Stockholders
    
    
    47ARTICLE 8 SURVIVAL AND INDEMNIFICATION
    
    
    488.1
    
    
    Survival of Representations, Warranties and Covenants
    
    
    488.2
    
    
    Indemnification
    
    
    488.3
    
    
    Limitations on Indemnification
    
    
    488.4
    
    
    Notice of Claim
    
    
    498.5
    
    
    Resolution of Notice of Claim
    
    
    508.6
    
    
    Release of Closing Escrow Fund
    
    
    528.7
    
    
    Third-Party Claims
    
    
    528.8
    
    
    Stockholder Representative
    
    
    528.9
    
    
    Contingent Payment Escrow Fund
    
    
    54
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TABLE OF CONTENTS
(Continued)
 Page8.10
    
    
    Notice of Release of Funds
    
    
    54ARTICLE 9 TERMINATION, AMENDMENT AND WAIVER
    
    
    559.1
    
    
    Termination
    
    
    559.2
    
    
    Effect of Termination
    
    
    569.3
    
    
    Amendment
    
    
    569.4
    
    
    Extension and Waiver
    
    
    56ARTICLE 10 GENERAL PROVISIONS
    
    
    5710.1
    
    
    Notices
    
    
    5710.2
    
    
    Counterparts
    
    
    5810.3
    
    
    Entire Agreement
    
    
    5810.4
    
    
    Third Party Beneficiaries
    
    
    5810.5
    
    
    Assignment
    
    
    5810.6
    
    
    Severability
    
    
    5810.7
    
    
    Other Remedies
    
    
    5910.8
    
    
    Governing Law
    
    
    5910.9
    
    
    Waiver of Jury Trial
    
    
    5910.10
    
    
    Specific Performance
    
    
    59
 -iii-




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INDEX OF EXHIBITS
 Exhibit
    
    DescriptionExhibit A
    
    Form of Voting AgreementExhibit B
    
    Form of Escrow AgreementExhibit C
    
    Form of Contingent Payment Escrow AgreementExhibit D
    
    Form of Legal Opinion of Montgomery Law Group, LLP




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AGREEMENT AND PLAN OF MERGER AND REORGANIZATION
 Agreement Signing Date Parent Merger Sub Company Principal Stockholder Principal
Stockholders Stockholder Representative
  Merger
  Employment Agreement Employment
Agreements Section 2.2 Non-Compete
Agreement Non-Compete Agreements
 Exhibit A Voting Agreement Voting Agreements




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ARTICLE 1
 DEFINITIONS AND INTERPRETATIONS
 Certain Definitions
 Affiliate
 Ancillary Agreements
 Breakup Fee
 Cash Amount
 Cash Balance
 Closing Escrow Cash Amount
 Closing Escrow Fund Section
2.6(g)
 Contingent Payment Escrow Fund Section 2.6(i)
 2




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COBRA et. seq.
 Code
 Company Capital Stock
 Company Common Stock
 Company Employee
 Company Employee Plan
 Company Intellectual Property
 Company International Employee Plan
 Company Material Adverse Effect
 Company Options
 Company Preferred Stock
 Company Stock Option Plan
 3




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Company Unit Plan
 Contract
 DOL
 Employee
 Employee Agreement
 Employment Agreement
 ERISA
 ERISA Affiliate
 Escrow Agent
 Equity Value plus minus minus Section 6.11
 Exchange Act
 FMLA
 Fully Diluted Company Capital Stock
 GAAP
 4




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Governmental Authority
 HIPAA
 Intellectual Property
 Intellectual Property Rights
 IRS
 Knowledge
 Liability Liabilities
 Lien provided, however
 5




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Losses
 Multiemployer Plan
 Option Exercise Proceeds
 Pension Plan
 Per-Share Common Amount
 Per-Share Preferred Amount
 Person
 Preferred Preference Amount
 Principal Stockholders
 Registered Intellectual Property
 SEC
 Securities Act
 6




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Signing Balance Sheet
 Signing Balance Sheet Date
 Signing Date
 Stockholder
 Tax Taxes
 Total Outstanding Shares
 U.S. Person
 Unvested Common Stock
 Vested Common Stock
 Vested Company Options
 Certain Interpretations
  7




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ARTICLE 2
 THE MERGER
 The Merger DGCL Surviving
Corporation
 Closing and Effective Time Section 9.1 Article 7 Closing Closing Date Certificate of Merger
 8




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Effective Time
 Legal Effect of the Merger
 Certificate of Incorporation and Bylaws
 Certificate of Incorporation Article 1
 Bylaws
 Directors and Officers
 Directors
 Officers
 Capital Stock of Constituent Corporations
 Merger Sub Capital Stock
 9




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Company Capital Stock
 Section 2.8
 Section 2.8
 Section 2.6(i)
 Company-Owned Company Capital Stock Section
2.6(b)
 Company Options
  10




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Section 2.6(d) Section 2.6(d)
 Per Share Residual Amount
 Option Exchange Ratio
  Withholding Taxes
 11




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U.S. Federal Income Tax Consequences
 Closing Escrow Cash Amount Exhibit B Escrow Agreement Pro Rata Share Article 9
 Closing Escrow Distributions Escrow Fraction Section 2.6(g) Section 2.6(b) Section 2.6(g) Section 2.6(b)
 Contingent Payment Escrow Fund Exhibit C Contingent Payment Escrow
Agreement Contingent Payment Escrow
Fund
 12




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Contingent Payment Escrow Amount
 Interest and Withholding Section 2.6(j)
 Determination of Cash Balance
 Signing Balance Sheet Dispute Notice
 Firm Final Cash Balance
 13




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greater less
  Dissenting Shares
 Dissenting Shares Section 2.6
 Section 2.8(a) Section 2.6 Sections
2.6(g) 2.6(i)
  14




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Dissenting Share Payments Article 9 provided, however,
 Surrender of Certificates
 Exchange Agent Exchange Agent
 Parent to Provide Cash Article 2 Sections 2.6(b)
 Exchange Procedures Certificate Certificates Section 6.10 Article
8 Section
2.6 Section 2.11
 15




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Section 2.6(b) Section 2.6(g) Section 2.6(i) Section
2.6
 No Liability Section
2.9
 No Further Ownership Rights in Company Capital Stock Article 2
 Lost, Stolen or Destroyed Certificates Section
2.6 provided however
 Further Assurances
 ARTICLE 3
 REPRESENTATIONS AND WARRANTIES
 16




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OF THE COMPANY AND THE PRINCIPAL SHAREHOLDERS
 Disclosure Schedule
 Organization Section 3.1 Section 3.1
 Authority Requisite Stockholder Approval
 17




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Conflicts Conflict
 Consents Section 3.4
 Company Capital Structure
 Section 3.5(a) Section
3.5(a)
 18




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Section 3.5(a)
 Section 3.5(b)
 Subsidiaries
 19




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Company Financial Statements Section 3.7 Company
Financial Statements Current Balance Sheet Current Balance Sheet Date
 No Undisclosed Liabilities
 No Changes Section 5.1(b)
 Taxes
 Returns
 20




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21




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22




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Employee Benefit Plans and Compensation
 Section 3.11(a) Section 3.11(a)
   23




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24




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25




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Intellectual Property
 Section 3.12(a) Company Registered Intellectual Property PTO
 Section 3.12(a)
   Commercially-Available Licenses Section 3.12(q))
 26




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Section 3.12(f)
 Section 3.12(g)
   27




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Section
3.12(a)
     28




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Section 3.12(q) Open Source Materials
  29




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Restrictions on Business Activities Section 3.13
 Properties
 Section 3.14(a) Leased Real Property
 30




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Material Contracts
 Section 3.15 Section 3.12(f) (g) Section 3.13 Section 3.14(a) Material Contract Material Contracts
   31




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Section 3.21
 Section 3.15 Section 3.15
 Schedule 3.15(a)(xiv)
  32




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Insurance Section 3.16 Insurance Policies
 Litigation
 Governmental Authorization Company Authorizations
 33




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Compliance with Laws
 Environmental Compliance
 Hazardous Material
 Hazardous Materials Activities
  Interested Party Transactions provided however
 34




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Section 3.21
 Minute Books
 Brokers and Finders Fees
 Accounts Receivable
 Warranties; Indemnities Section 3.12(g)
 Financial Projections/Operating Plan provided, however,
 Banks and Brokerage Accounts Section 3.27
 35




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Customers and Suppliers Significant Customers Significant Suppliers
 Representations Complete
 ARTICLE 4
 REPRESENTATIONS AND WARRANTIES  OF PARENT AND MERGER SUB
 Parent Disclosure Schedule
 Organization, Standing and Power
 Authority
 36




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Consents
 Brokers and Finders Fees
 ARTICLE 5
 CONDUCT OF THE COMPANY  PRIOR TO THE EFFECTIVE TIME
 Conduct of Business of the Company
 Schedule 5.1(a) Section
9.1
 37




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Schedule 5.1(b) Section 9.1
    Schedule 5.1(b)(iv)
 Schedule
5.1(b)(v)
 Schedule 5.1(b)(vi)
  38




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Schedule 5.1(b)(vii)
          39




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Section 5.1(b)(i) Section 5.1(b)(xx)
 No Solicitation Section 9.1
 40




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Section 5.2 Section 5.2
 ARTICLE 6
 ADDITIONAL AGREEMENTS
 Stockholder Approval
  Notice of Stockholder Consent
 Section 6.1
 Commercially Reasonable Efforts; Governmental Approvals; Contract Consents Article 7
 41




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Notification of Certain Matters provided however Section 6.3 Article 8
 Access to Information
 42




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Section 6.4 Article 8
 Confidentiality Section 6.4 Confidential Disclosure Agreement
 Public Disclosure
 Employment Arrangements Offer Letter Continuing Employee Section 6.9
 Employee Plans
 43




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Parent Plans provided
 Proprietary Information and Inventions Assignment Agreement
 Spreadsheet Spreadsheet
 Expenses
 44




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ARTICLE 7
 CONDITIONS TO THE MERGER
 Conditions to Obligations of Each Party
 No Orders
 No Injunctions
 Governmental Approvals
 Requisite Stockholder Approval
 Legal Proceedings
 Conditions to the Obligations of Parent and Merger Sub
 45




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Covenants
 No Company Material Adverse Change Section 7.2(b) Company
Material Adverse Change Section 5.1
 Representations and Warranties
 Certificate of the Company Section 7.2(a) (b) (c)
 Certificate of the Principal Stockholders Section 7.2(a) Section
7.2(b)
 Good Standing Certificates 46
        Legal Opinion Exhibit D
 Ancillary Agreements
 FIRPTA Certificate
 Company Stockholder Approval
 Employment Matters Schedule 7.2(k) Identified
Individuals
 Conditions to Obligations of the Company and the Principal Stockholders Section 8.1
 Covenants
 Representations and Warranties
 Certificate of Parent Sections 7.3(a) (b)
 47




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ARTICLE 8
 SURVIVAL AND INDEMNIFICATION
 Survival of Representations, Warranties and Covenants Termination Date provided, however, Article 8
 Indemnification
 Parent Indemnified
Party Parent Indemnified Parties Section 8.3 Section
2.8(c) Section 2.7(c)
 Company Indemnified Party Company Indemnified Parties Section 8.3
 Limitations on Indemnification
 48




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Section 8.2 Section 8.2 Deductible Amount Section 8.2 provided, however Section 8.3(a) Section 2.7(c)
 Section 8.2(a)(i) (ii) (iv)
 provided, however, Section 8.2(a)(iii)
 Section 8.2(b) Section 2.7(c)
 Notice of Claim
 Claim Article 8, Indemnified Party Sections 8.2(a) 8.2(b) Indemnifying Party Sections 8.2(a) Section 8.2(b) Notice of Claim Article 8 provided, however, Section 2.7
 Section 8.4(a)
 49




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Article
8
 Article 8
 Resolution of Notice of Claim
 Article 8 Section Section8.2(b) Section 8.5(a)
 Contested
 50




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Claim Section 8.5(a) Section 8.5(c) Section 8.2(a) Section 8.2(b)
 Arbitration
 Section 8.5(c)(ii)
 51




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Release of Closing Escrow Fund Section 8.1 provided,
however, Section 8.2(a) Unresolved Claims Section 8.8(b)
 Third-Party Claims Third Party Claim Article 8 provided, however Article 8
 Stockholder Representative
 52




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provided, however,
 Stockholder Representative
Expenses Section 8.6
 53




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Contingent Payment Escrow Fund Key Employee Stockholder Payment Schedule Service Provider Termination for Convenience Termination Other than for Convenience
 Notice of Release of Funds
 Contingent Payment Release Notice
  54




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Section 8.5(c)
 ARTICLE 9
 TERMINATION, AMENDMENT AND WAIVER
 Termination Section 9.2
  provided however Section 9.1(b)
 provided however Section 9.1(c)
   55




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Section 7.2(a) Section 7.2(b) provided however
   Section 7.3(a) Section 7.3(b) provided, however,
  Effect of Termination Section 9.1 provided however Section 6.5 Section 6.6 Section 6.11 Article 10 Section
9.2 Article 9; Terminating Party Section 9.1(e) 9.1(h)
 Amendment
 Extension and Waiver
 56




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ARTICLE 10
 GENERAL PROVISIONS
 Notices provided however
 (a)
    
    if to Parent, Merger Sub or Surviving Corporation to:
 
  
 (b)
    
    if to the Company, to:
 
 57




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(c)
    
    If to the Stockholder Representative, to:
 
  Counterparts
 Entire Agreement
 Third Party Beneficiaries Article 2 Sections 8.1 8.2
 Assignment
 Severability
 58




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Other Remedies
 Governing Law
 Waiver of Jury Trial
 Specific Performance
 Remainder of page intentionally left blank
 59




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CONFIDENTIAL
  SONICWALL, INC.By:Name: Matthew MedeirosTitle: President and CEOSPECTRUM ACQUISITION CORPORATIONBy:Name: Matthew MedeirosTitle: President and CEO
 SIGNATURE PAGE TO
AGREEMENT AND PLAN OF MERGER AND REORGANIZATION




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LASSO LOGIC, INC.By:Name: Steven GoodmanTitle: Chief Executive Officer
 SIGNATURE PAGE TO
AGREEMENT AND PLAN OF MERGER AND REORGANIZATION




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STOCKHOLDER REPRESENTATIVESteven Goodman
 SIGNATURE PAGE TO
AGREEMENT AND PLAN OF MERGER AND REORGANIZATION




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PRINCIPAL STOCKHOLDERS:Steven GoodmanSal Sferlazza
 SIGNATURE PAGE TO
AGREEMENT AND PLAN OF MERGER AND REORGANIZATION