Form of 2007 Equity Incentive Plan Stock Option Agreement (Automatic Annual)



 Exhibit 10.34 
 Annual Director Grant 
 DATA DOMAIN, INC. 2007
EQUITY INCENTIVE PLAN 
 NOTICE OF STOCK
OPTION GRANT 
 You have been granted the following option to purchase shares of the Common Stock of Data
Domain, Inc. (the “Company”): 
  

			
	 Name of Optionee:
	  	 «Name»

		
	 Total Number of Shares:
	  	 15,000

		
	 Type of Option:
	  	 Nonstatutory Stock Option

		
	 Exercise Price per Share:
	  	 $«PricePerShare»

		
	 Date of Grant:
	  	 «DateGrant»

		
	 Vesting Schedule:
	  	 This option becomes exercisable with respect to 1/12th of the shares subject to this option when you complete each month of continuous Service after the Date of
Grant.

		
	 Expiration Date:
	  	 «ExpDate». This option expires earlier if your Service terminates earlier, as described in the Stock Option Agreement.


 You and the Company agree that this option is granted under and governed by the terms and
conditions of the Stock Option Agreement, which is attached to and made a part of this document, and the 2007 Equity Incentive Plan (the “Plan”). 
 You further agree that the Company may deliver by email all documents relating to the Plan or this option (including, without limitation, prospectuses required by the Securities and Exchange Commission) and all other
documents that the Company is required to deliver to its security holders (including, without limitation, annual reports and proxy statements). You also agree that the Company may deliver these documents by posting them on a web site maintained by
the Company or by a third party under contract with the Company. If the Company posts these documents on a web site, it will notify you by email. 
  

			
	OPTIONEE:	 	DATA DOMAIN, INC.
		
	_____________________________________________	 	 By:                                      
                                        
            

		
		 	 Title:                                     
                                        
          









 DATA DOMAIN, INC. 2007 EQUITY
INCENTIVE PLAN 
 STOCK OPTION AGREEMENT 
  

			
	 Tax Treatment
	  	 This option is intended to be a nonstatutory stock option, as provided in the Notice of Stock Option Grant.

		
	 Vesting
	  	 This option becomes exercisable in installments, as shown in the Notice of Stock Option Grant.
  
 This option may become exercisable on an accelerated basis pursuant to
Section 10.3 of the Plan.
  
 In addition, this option shall
become exercisable in full if:
  
 •      The Company is subject to a Change in Control before your Service terminates and your Service is terminated in connection with such Change in Control.
  
 •      Your Service
terminates due to your death, “total and permanent disability” or retirement at or after age 72.
  
 This option will in no event become exercisable for additional shares after your Service has terminated for any reason except as set forth above.
  
 For all purposes under this Agreement, “total and permanent
disability” means that you are unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted, or can be expected to last,
for a continuous period of not less than one year.

		
	 Term
	  	 This option expires in any event at the close of business at Company headquarters on the day before the 10th anniversary of the Date of Grant, as shown in the Notice of Stock Option Grant. (It will expire earlier if your Service terminates, as described
below.)

		
	 Termination of
 Service
	  	 If your Service terminates for any reason, then this option will expire at the close of business at Company headquarters on the date 12 months after your termination date.
The Company determines when your Service terminates for this purpose.

		
	 Restrictions on
 Exercise
	  	 The Company will not permit you to exercise this option if the issuance of shares at that time would violate any law or regulation.


  

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	 Notice of Exercise
	  	 When you wish to exercise this option, you must notify the Company by filing the proper “Notice of Exercise” form at the
address given on the form. Your notice must specify how many shares you wish to purchase. Your notice must also specify how your shares should be registered. The notice will be effective when the Company receives it.
  
 If someone else wants to exercise this option after your death, that
person must prove to the Company's satisfaction that he or she is entitled to do so.

		
	 Form of Payment
	  	 When you submit your notice of exercise, you must include payment of the option exercise price for the shares that you are
purchasing. To the extent permitted by applicable law, payment may be made in one (or a combination of two or more) of the following forms:
  
 •      Your personal check, a cashier’s check or a money order.
  
 •      Certificates for
shares of Company stock that you own, along with any forms needed to effect a transfer of those shares to the Company. The value of the shares, determined as of the effective date of the option exercise, will be applied to the option exercise price.
Instead of surrendering shares of Company stock, you may attest to the ownership of those shares on a form provided by the Company and have the same number of shares subtracted from the option shares issued to you.
  
 •      Irrevocable
directions to a securities broker approved by the Company to sell all or part of your option shares and to deliver to the Company from the sale proceeds an amount sufficient to pay the option exercise price and any withholding taxes. (The balance of
the sale proceeds, if any, will be delivered to you.) The directions must be given by signing a special “Notice of Exercise” form provided by the Company.

		
	 Withholding
 Taxes and Stock
 Withholding
	  	 You will not be allowed to exercise this option unless you make arrangements acceptable to the Company to pay any withholding taxes that may be due as a result of the option
exercise. With the Company’s consent, these arrangements may include withholding shares of Company stock that otherwise would be issued to you when you exercise this option. The value of these shares, determined as of the effective date of the
option exercise, will be applied to the withholding taxes.

		
	 Restrictions on
 Resale
	  	 You agree not to sell any option shares at a time when applicable laws, Company policies or an agreement between the Company and its underwriters prohibit a sale. This
restriction will apply as long as your Service continues and for such period of time after the termination of your Service as the Company may specify.


  

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	 Transfer of
 Option
	  	 Prior to your death, only you may exercise this option. You cannot transfer or assign this option. For instance, you may not sell this option or use
it as security for a loan. If you attempt to do any of these things, this option will immediately become invalid. You may, however, dispose of this option in your will or a beneficiary designation.
  
 Regardless of any marital property settlement agreement, the Company is not obligated to honor a
notice of exercise from your former spouse, nor is the Company obligated to recognize your former spouse’s interest in your option in any other way.

		
	 Retention Rights
	  	Your option or this Agreement does not give you the right to be retained by the Company or a subsidiary of the Company in any capacity. The Company and its subsidiaries reserve the right to
terminate your Service at any time, with or without cause. Nor shall this Agreement in any way be construed or interpreted so as to affect adversely or otherwise impair the right of the Company or the stockholders to remove you from the Board of
Directors at any time in accordance with the provisions of applicable law.
		
	 Stockholder
 Rights
	  	You, or your estate or heirs, have no rights as a stockholder of the Company until you have exercised this option by giving the required notice to the Company and paying the exercise price. No
adjustments are made for dividends or other rights if the applicable record date occurs before you exercise this option, except as described in the Plan.
		
	 Adjustments
	  	In the event of a stock split, a stock dividend or a similar change in Company stock, the number of shares covered by this option and the exercise price per share will be adjusted pursuant to
the Plan.
		
	 Applicable Law
	  	This Agreement will be interpreted and enforced under the laws of the State of Delaware (without regard to their choice-of-law provisions).
		
	 The Plan and
 Other Agreements
	  	 The text of the Plan is incorporated in this Agreement by reference. Capitalized terms not otherwise defined herein shall have the meanings set forth
in the Plan.
  
 This Agreement and the Plan constitute the entire understanding between
you and the Company regarding this option. Any prior agreements, commitments or negotiations concerning this option are superseded. This Agreement may be amended only by another written agreement between the parties.


  

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 BY SIGNING THE COVER SHEET
OF THIS AGREEMENT, YOU AGREE TO ALL OF THE 
 TERMS AND CONDITIONS DESCRIBED ABOVE AND IN THE PLAN.

  

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