Document:

Form of Subscription Agreement

 Exhibit 10.1 
 SUBSCRIPTION AGREEMENT 
 THIS SUBSCRIPTION AGREEMENT (this “Agreement”) dated as of
September     , 2006, by and between VIRAGEN INTERNATIONAL, INC., a Delaware corporation (the “Company”), and
                     (“Subscriber”). 
 WHEREAS, the Company and the Subscriber are executing and delivering this Agreement in reliance upon an exemption from securities registration afforded by the provisions of Regulation S (“Regulation
S”) as promulgated by the United States Securities and Exchange Commission (the “Commission”) under the Securities Act of 1933, as amended (the “1933 Act”); and 
 WHEREAS, Subscriber has received or has access to various offering materials (the “Documents”); and 
 WHEREAS, the parties desire that, upon the terms and subject to the conditions contained herein, the Company shall issue and sell to Subscriber,
as provided herein, and Subscriber shall purchase              shares of Series D 24% Cumulative Preferred Stock of the Company (“Preferred Stock”) at a stated value of
$100 USD per share for a total purchase price of $             (the “Purchase Price”), subject to the rights and preferences described in the form of Certificate of
Designation, Preferences and Rights (“Certificate of Designation”) attached as Exhibit A to this Agreement. The Preferred Stock is sometimes referred to herein as the “Securities.” 
 NOW, THEREFORE, in consideration of the mutual covenants and other agreements contained in this Agreement the Company and Subscriber hereby agree
as follows: 
 1. Purchase of Preferred Stock. Subject to the satisfaction or waiver of the terms and conditions of this Agreement,
Subscriber shall purchase and the Company shall sell to Subscriber the number of shares of Preferred Stock set forth above. Subscriber hereby authorizes Viragen International, Inc. (as defined below) to act on Subscriber’s behalf to determine
whether the conditions have been satisfied or waive any conditions. At the Closing, the Company shall issue and deliver the certificates for the Preferred Stock in exchange for the Purchase Price. 
 2. Closing. The consummation of the transactions contemplated herein shall take place at the offices of Viragen International, Inc. (“Viragen
International”), 865 SW 78th Avenue, Suite 100, Plantation, Florida 33324, upon the satisfaction or waiver of
all conditions to Closing (“Closing Date”) as established by Viragen International, Inc. including the conditions to closing set forth in Schedule 1 annexed hereto. 
 3. Subscriber’s Representations and Warranties. Subscriber hereby represents and warrants to and agrees with the Company that: 
 (a) Organization and Standing of the Subscriber. If the Subscriber is an entity, such Subscriber is a corporation, partnership or other entity
duly incorporated or organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization. 
 (b) Authorization and Power. Subscriber has the requisite power and authority to enter into and perform this Agreement and to purchase the Securities being sold to it hereunder. The execution, delivery and performance of this
Agreement by Subscriber and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary entity action, and no further consent or authorization of Subscriber or its Board of Directors,
stockholders, partners, members, or other persons as the case may be, is required. This Agreement has been duly authorized, executed and delivered by Subscriber and constitutes, or shall constitute when executed and delivered, a valid and binding
obligation of the Subscriber enforceable against the Subscriber in accordance with the terms thereof. 

 (c) No Conflicts. The execution, delivery and performance of this Agreement and the consummation
by Subscriber of the transactions contemplated hereby or relating hereto do not and will not (i) result in a violation of Subscriber’s charter documents or bylaws or other organizational documents or (ii) conflict with, or constitute
a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of any agreement, indenture or instrument or obligation to which
Subscriber is a party or by which its properties or assets are bound, or result in a violation of any law, rule, or regulation, or any order, judgment or decree of any court or governmental agency applicable to Subscriber or its properties (except
for such conflicts, defaults and violations as would not, individually or in the aggregate, have a material adverse effect on Subscriber). Subscriber is not required to obtain any consent, authorization or order of, or make any filing or
registration with, any court or governmental agency in order for it to execute, deliver or perform any of its obligations under this Agreement or to purchase the Securities in accordance with the terms hereof, provided that for purposes of the
representation made in this sentence, Subscriber is assuming and relying upon the accuracy of the relevant representations and agreements of the Company herein. 
 (d) Information on Company. In addition to receipt of the Documents, Subscriber has had access at the EDGAR Website of the Commission to the Company’s Form 10-K for the year ended June 30, 2005 and
all the periodic and current reports as filed with the Commission (hereinafter referred to as the “Reports”). In addition, Subscriber has received in writing from the Company such other information concerning its operations, financial
condition and other matters as the Subscriber has requested in writing (such other information is collectively, the “Other Written Information”), and considered all factors Subscriber deems material in deciding on the advisability of
investing in the Securities. 
 (e) Acknowledgements by Subscriber. Subscriber acknowledges that the Preferred Stock being acquired
pursuant hereto will be junior and subordinate to the Series C Preferred Stock. Accordingly, the Series C Preferred Stock will be deemed to have priority over the Preferred Stock acquired pursuant hereto with respect to dividends, liquidation and
redemption rights. The Preferred Stock is not convertible into common stock of the Company nor will the purchase of the Securities by the Subscriber include any shares of common stock or other securities exercisable for or convertible into common
stock of the Company. Subscriber acknowledges that a non-U.S. finder or finders will receive an 7 1/2% cash
selling commission for the value of the Securities. The terms of the Preferred Stock are described in the Certificate of Designation annexed to this Subscription Agreement as Exhibit A. 
 (f) Information on Subscriber. The Subscriber is, an “accredited investor”, as such term is defined in Regulation D promulgated by the
Commission under the 1933 Act, is experienced in investments and business matters, has made investments of a speculative nature and has purchased securities of United States publicly-owned companies in private placements in the past and, with its
representatives, has such knowledge and experience in financial, tax and other business matters as to enable the Subscriber to utilize the information made available by the Company to evaluate the merits and risks of and to make an informed
investment decision with respect to the proposed purchase, which represents a speculative investment. The Subscriber has the authority and is duly and legally qualified to purchase and own the Securities. The Subscriber is able to bear the risk of
such investment for an indefinite period and to afford a complete loss of the entire investment. The information set forth on the signature page hereto regarding the Subscriber is accurate. 
 (g) Purchase of Securities. Subscriber will purchase the Securities as principal for its own account for investment only and not with a view
toward, or for resale in connection with, the public sale or any distribution thereof. 
  

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 (h) Offshore Transaction. 
 (i) Subscriber is not a U.S. person (whenever such term is used herein, it shall have the meaning given in Regulation S). 
 (ii) At the time Subscriber executed and delivered this Agreement, Subscriber was outside the United States and is outside of the United States as of
the date of the execution and delivery of this Agreement. 
 (iii) Purchaser is acquiring the Preferred Stock for its own account and not on
behalf of any U.S. person, and the sale has not been pre-arranged with a purchaser in the United States. 
 (iv) Any distributor
participating in the offering of the Preferred Stock has agreed in writing that all offers and sales of the Securities prior to the expiration of a period commencing on the date of the Closing and ending one year thereafter, unless adjusted as
hereinafter provided (the “Restricted Period”), shall only be made in compliance with the safe harbor contained in Regulation S, pursuant to registration of the Securities under the 1933 Act or pursuant to an exemption from registration.

 (v) Subscriber represents and warrants and hereby agrees that all offers and sales of the Preferred Stock prior to the expiration of the
Restricted Period shall only be made in compliance with the safe harbor contained in Regulation S, pursuant to registration of the Preferred Stock under the 1933 Act or pursuant to an exemption from registration, and all offers and sales after the
Restricted Period shall be made only pursuant to such a registration or to such exemption from registration. 
 (vi) Subscriber acknowledges
that, in the view of the Securities and Exchange Commission (“SEC”), the statutory exemption claimed in this transaction would not be present if the offering of Preferred Stock, although in technical compliance with Regulation S, is part
of a plan or scheme to evade the registration provisions of the 1933 Act. Subscriber is acquiring the Preferred Stock for investment purposes and has no present intention to sell the Preferred Stock in the United States or to a U.S. person or for
the account or benefit of a U.S. person either now or promptly after the expiration of the Restricted Period. 
 (vii) Subscriber is not an
underwriter of, or dealer in, the Preferred Stock; and Subscriber is not participating, pursuant to a contractual agreement in the distribution of the Preferred Stock. 
 (viii) The undersigned will not engage in any hedging transactions as precluded by Regulation S under the Act. 
 (ix) Subscriber hereby agrees that the Company may insert the following or similar legend on the face of the certificates evidencing the Preferred Stock in compliance with Regulation S of the 1933 Act: 
 “THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE. THESE
SECURITIES HAVE BEEN ACQUIRED PURSUANT TO A SAFE HARBOR FROM REGISTRATION UNDER REGULATION S PROMULGATED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). THE SECURITIES ARE “RESTRICTED” AND MAY NOT BE OFFERED OR SOLD IN
THE UNITED STATES OR TO U.S. PERSONS (AS SUCH TERM IS DEFINED IN REGULATION S PROMULGATED UNDER THE ACT) UNLESS THE SECURITIES ARE REGISTERED UNDER THE ACT, PURSUANT TO REGULATION S OR PURSUANT TO AVAILABLE EXEMPTIONS 
  

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 FROM THE REGISTRATION REQUIREMENTS OF THE ACT, AND THE COMPANY WILL BE PROVIDED WITH OPINION OF COUNSEL
OR OTHER SUCH INFORMATION AS IT MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH EXEMPTIONS ARE AVAILABLE. FURTHER HEDGING TRANSACTIONS INVOLVING THE SHARES MAY NOT BE MADE EXCEPT IN COMPLIANCE WITH THE ACT.” 
 (i) Preferred Stock Legend. In addition to the legend described above, the Preferred Stock shall bear the following or similar legend:

 “THIS PREFERRED STOCK HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS PREFERRED STOCK MAY NOT BE SOLD,
OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THESE SHARES OF PREFERRED STOCK UNDER SAID ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO VIRAGEN INTERNATIONAL, INC. THAT SUCH
REGISTRATION IS NOT REQUIRED.” 
 (j) Communication of Offer. The offer to sell the Securities was directly communicated to the
Subscriber by the Company. At no time was the Subscriber presented with or solicited by any leaflet, newspaper or magazine article, radio or television advertisement, or any other form of general advertising or solicited or invited to attend a
promotional meeting otherwise than in connection and concurrently with such communicated offer. 
 (k) No Governmental Review.
Subscriber understands that no United States federal or state agency or any other governmental or state agency has passed on or made recommendations or endorsement of the Securities or the suitability of the investment in the Securities nor have
such authorities passed upon or endorsed the merits of the offering of the Securities. 
 (l) Correctness of Representations.
Subscriber represents that the foregoing representations and warranties are true and correct as of the date hereof. 
 4. Company
Representations and Warranties. The Company represents and warrants to and agrees with Subscriber that except as set forth in the Reports and as otherwise qualified in the Documents. 
 (a) Due Incorporation. The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware
and has the requisite corporate power to own its properties and to carry on its business as disclosed in the Reports. The Company is duly qualified to do business and is in good standing in each jurisdiction where the nature of the business
conducted or property owned by it makes such qualification necessary, other than those jurisdictions in which the failure to so qualify would not have a Material Adverse Effect. For purpose of this Agreement, a “Material Adverse Effect”
shall mean a material adverse effect on the financial condition, results of operations, properties or business of the Company and its subsidiaries taken as a whole. For purposes of this Agreement, “Subsidiary” means, with respect to any
entity at any date, any corporation, limited or general partnership, limited liability company, trust, estate, association, joint venture or other business entity of which more than 50% of (i) the outstanding capital stock having (in the
absence of contingencies) ordinary voting power to elect a majority of the board of directors or other managing body of such entity, (ii) in the case of a partnership or limited liability company, the interest in the capital or profits of such
partnership or limited liability company or (iii) in the case of a trust, estate, association, joint venture or other entity, the beneficial interest in such trust, estate, association or other entity business is, at the time of determination,
owned or controlled directly or indirectly through one or more intermediaries, by such entity. All the Company’s Subsidiaries as of the Closing Date are set forth in the Reports. 
  

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 (b) Company Representations under Regulation S. The Company makes the following representations
and warranties as to Regulation S: 
 (i) Reporting Company Status. The Company is a reporting issuer as defined by Rule 902 of
Regulation S and is issuing the Securities as Category 3 securities under Rule 902 of Regulation S; 
 (ii) Offshore Transaction. The
Company has not offered the Securities to any person in the United States or to any U.S. person or for the account or benefit of any U.S. person; and 
 (iii) No Directed Selling Efforts. In regard to this transaction, the Company has not conducted any “directed selling efforts” as that term is defined in Rule 902 of Regulation S, nor has the Company
conducted any general solicitation relating to the offer and sale of the within securities to persons resident within the United States or elsewhere. 
 (c) Outstanding Stock. All issued and outstanding shares of capital stock of the Company have been duly authorized and validly issued and are fully paid and nonassessable. 
 (d) Authority; Enforceability. This Agreement, the Documents, the Preferred Stock, Certificate of Designation and any other agreements delivered
together with this Agreement or in connection herewith (collectively “Transaction Documents”) have been duly authorized, executed and delivered by the Company and are valid and binding agreements enforceable in accordance with their terms,
subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights generally and to general principles of equity. The Company has full
corporate power and authority necessary to enter into and deliver the Transaction Documents and to perform its obligations thereunder. 
 (e) Consents. No consent, approval, authorization or order of any court, governmental agency or body or arbitrator having jurisdiction over the Company, or any of its Affiliates, any Principal Market (as defined in Section 7(b)
of this Agreement), nor the Company’s stockholders is required for the execution by the Company of the Transaction Documents and compliance and performance by the Company of its obligations under the Transaction Documents, including, without
limitation, the issuance and sale of the Securities. The issuance and sale of the Preferred Stock and the Transaction Documents have been approved by the Company’s Board of Directors. 
 (f) No Violation or Conflict. Assuming the representations and warranties of the Subscriber in Section 3 are true and correct, neither the
issuance and sale of the Securities nor the performance of the Company’s obligations under this Agreement and all other Transaction Documents entered into by the Company will: 
 (i) violate, conflict with, result in a breach of, or constitute a default (or an event which with the giving of notice or the lapse of time or both
would be reasonably likely to constitute a default in any material respect) of a material nature under (A) the certificate of incorporation or bylaws of the Company, (B) to the Company’s knowledge, any decree, judgment, order, law,
treaty, rule, regulation or determination applicable to the Company of any court, governmental agency or body, or arbitrator having jurisdiction over the Company or over the properties or assets of the Company or any of its Affiliates, (C) the
terms of any bond, debenture, note or any other evidence of indebtedness, or any agreement, stock option or other similar plan, indenture, lease, mortgage, deed of trust or other instrument to which the Company or any of its Affiliates is a party,
by which the Company or any of its Affiliates is bound, or to which any of the properties of the Company or any of its Affiliates is subject, or (D) the terms of any “lock-up” or similar 
  

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 provision of any underwriting or similar agreement to which the Company, or any of its Affiliates is a party except the
violation, conflict, breach, or default of which would not have a Material Adverse Effect; or to the Company’s knowledge; 
 (ii) result
in the creation or imposition of any lien, charge or encumbrance upon the Securities or any of the assets of the Company or any of its Affiliates; or 
 (iii) result in the activation of any anti-dilution rights or a reset or re-pricing of any debt or security instrument of any other creditor or equity holder of the Company, nor result in the acceleration of the due
date of any obligation of the Company; or 
 (iv) result in the activation of any piggy-back registration rights of any person or entity
holding securities or debt of the Company or having the right to receive securities of the Company. 
 (g) The Securities. The
Securities upon issuance: 
 (i) are, or will be, free and clear of any security interests, liens, claims or other encumbrances, subject to
restrictions upon transfer under the 1933 Act and any applicable state securities laws; 
 (ii) have been, or will be, duly and validly
authorized and on the date of issuance of the Securities, will be duly and validly issued, fully paid and nonassessable; 
 (iii) will not
have been issued or sold in violation of any preemptive or other similar rights of the holders of any securities of the Company; 
 (iv)
will not subject the holders thereof to personal liability by reason of being such holders, provided Subscriber’s representations herein are true and accurate and Subscriber takes no action or fails to take any actions required for their
purchase of the Securities to be in compliance with all applicable laws and regulations; and 
 (v) will not result in a violation of
Section 5 under the 1933 Act. 
 (h) Litigation. There is no pending or, to the best knowledge of the Company, threatened
action, suit, proceeding or investigation before any court, governmental agency or body, or arbitrator having jurisdiction over the Company, or any of its Affiliates that would affect the execution by the Company or the performance by the Company of
its obligations under the Transaction Documents. Except as disclosed in the Reports, there is no pending or, to the best knowledge of the Company, basis for or threatened action, suit, proceeding or investigation before any court, governmental
agency or body, or arbitrator having jurisdiction over the Company, or any of its Affiliates which litigation if adversely determined would have a Material Adverse Effect. 
 (i) Reporting Company. The Company is a publicly-held company subject to reporting obligations pursuant to Section 13(a) and 15(d) of the
Securities Exchange Act of 1934 (the “1934 Act”) and has a class of common shares registered pursuant to Section 12(g) of the 1934 Act. Pursuant to the provisions of the 1934 Act, the Company has filed all reports and other materials
required to be filed thereunder with the Commission during the preceding twelve months. 
 (j) No Market Manipulation. The Company
and its Affiliates have not taken, and will not take, directly or indirectly, any action designed to, or that might reasonably be expected to, cause or result in stabilization or manipulation of the price of the common stock of the Company to
facilitate the sale or resale of the Securities or affect the price at which the Securities may be issued or resold, provided, however, that this provision shall not prevent the Company from engaging in investor relations/public relations activities
consistent with past practices. 
  

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 (k) Information Concerning Company. The Reports, as amended, the Documents and Transaction
Documents contain all material information relating to the Company and its subsidiaries and their operations and financial condition and other information, as of their respective dates required to be disclosed therein. Since the last day of the
fiscal year of the most recent annual audited financial statements included in the Reports (“Latest Financial Date”), and except as modified in the Other Written Information, there has been no Material Adverse Event relating to the
Company’s business, financial condition or affairs not disclosed in the Reports. The Reports do not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the
statements therein not misleading in light of the circumstances when made. 
 (l) Stop Transfer. The Company will not issue any stop
transfer order or other order impeding the sale, resale or delivery of any of the Securities, except as may be required by any applicable federal or state securities laws, including Regulation S, and unless contemporaneous notice of such instruction
is given to the Subscriber. 
 (m) Defaults. The Company is not in violation of its certificate or articles of incorporation or
bylaws. The Company, to the best of its knowledge, is (i) not in default under or in violation of any material agreement or instrument to which it is a party or by which it or any of its properties are bound or affected, which default or
violation would have a Material Adverse Effect, (ii) not in default with respect to any order of any court, arbitrator or governmental body or subject to or party to any order of any court or governmental authority arising out of any action,
suit or proceeding under any statute or other law respecting antitrust, monopoly, restraint of trade, unfair competition or similar matters, or (iii) not in violation of any statute, rule or regulation of any governmental authority which
violation would have a Material Adverse Effect. 
 (n) Not an Integrated Offering. Neither the Company, nor any of its Affiliates,
nor any person acting on its or their behalf, has directly or indirectly made any offers or sales of any security or solicited any offers to buy any security under circumstances that would cause the offer of the Securities pursuant to this Agreement
to be integrated with prior offerings by the Company for purposes of the 1933 Act or any applicable stockholder approval provisions, including, without limitation, under the rules of any Principal Market [as defined in Section 7(b)] which would
impair the exemptions relied upon in this offering or the Company’s ability to timely comply with its obligations hereunder. Nor will the Company or any of its Affiliates take any action or steps that would cause the offer or issuance of the
Securities to be integrated with other offerings which would impair the exemptions relied upon in this offering or the Company’s ability to timely comply with its obligations hereunder. The Company and its Affiliates will not conduct any
offering other than the transactions contemplated hereby that will be integrated with the offer or issuance of the Securities, which would impair the exemptions relied upon in this offering or the Company’s ability to timely comply with its
obligations hereunder. The Company has previously issued 3,154 Preferred Stock shares. 
 (o) No General Solicitation. Neither the
Company, nor any of its Affiliates, nor to its knowledge, any person acting on its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D under the 1933 Act) in connection with the
offer or sale of the Securities. 
 (p) Quotation. The common stock of the Company is included for quotation on the Over-the-Counter
Market. Except as disclosed in the Reports, the Company has not received any oral or written notice that the Common Stock is not eligible, nor will become ineligible for trading on the Over-the-Counter Market, nor that its Common Stock does not meet
all requirements for the continuation of such inclusion. 
  

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 (q) No Undisclosed Liabilities. The Company has no liabilities or obligations which are material,
individually or in the aggregate, which are not disclosed in the Reports and Other Written Information, other than those incurred in the ordinary course of the Company’s businesses since the Latest Financial Date and which, individually or in
the aggregate, would reasonably be expected to have a Material Adverse Effect. 
 (r) No Undisclosed Events or Circumstances. Since
the Latest Financial Date, no event or circumstance has occurred or exists with respect to the Company or its businesses, properties, operations or financial condition, that, under applicable law, rule or regulation, requires public disclosure or
announcement prior to the date hereof by the Company but which has not been so publicly announced or disclosed in the Reports. 
 (s)
Capitalization. The authorized and outstanding capital stock of the Company as of the date of this Agreement (not including the Securities and the Series C Preferred Stock) are set forth in the Documents. Except as set forth therein, there
are no options, warrants, or rights to subscribe to, securities, rights or obligations convertible into or exchangeable for or giving any right to subscribe for any shares of capital stock of the Company or any of its Subsidiaries. All of the
outstanding shares of Common Stock of the Company have been duly and validly authorized and issued and are fully paid and nonassessable. 
 (t) No Disagreements with Accountants and Lawyers. There are no disagreements of any kind during the two fiscal years preceding the date of this Agreement, presently existing, or reasonably anticipated by the Company to arise,
between the Company and the accountants and lawyers formerly or presently employed by the Company, including but not limited to disputes or conflicts over payment owed to such accountants and lawyers. 
 (u) Internal Accounting Controls. The Company maintains a system of internal accounting controls sufficient to provide reasonable assurance that
(i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted
accounting principles and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s general or specific authorization and (iv) the recorded accountability for assets is compared with
the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. 
 (v) Correctness of
Representations. The Company represents that the information in the Documents is true and correct in all material respects as of the date hereof, and the foregoing representations and warranties are true and correct as of the date hereof in all
material respects. 
 (w) Survival. The foregoing representations and warranties shall survive until three years after the Closing
Date. 
 5. Private Offering. The offer and issuance of the Securities to the Subscriber is being made pursuant to the exemption from
the registration provisions of the 1933 Act afforded by Regulation S. 
 6 Concerning the Preferred Stock. 
 (a) No Interest. Nothing contained herein or in any document referred to herein or delivered in connection herewith shall be deemed to establish
or require the payment of a rate of interest or other charges in excess of the maximum permitted by applicable law. In the event that the rate of interest or dividends required to be paid or other charges hereunder exceed the maximum permitted by
such law, any payments in excess of such maximum shall be credited against amounts owed by the Company to the Subscriber and thus refunded to the Company. 
 (b) Redemption. The Preferred Stock shall not be redeemable or callable except as described in the Certificate of Designation. 
  

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 7. Covenants of the Company. The Company covenants and agrees with Subscriber that so long as
Subscriber owns the Preferred Stock, the Company will use its best efforts in good faith to do the following: 
 (a) Stop Orders. The
Company will advise Subscriber, within four hours after the Company receives notice of issuance by the Commission, any state securities commission or any other regulatory authority of any stop order or of any order preventing or suspending any
offering of any securities of the Company, or of the suspension of the qualification of the Common Stock of the Company for offering or sale in any jurisdiction, or the initiation of any proceeding for any such purpose. 
 (b) Over-the-Counter Market. The Company will continue the inclusion for the quotation of its Common Stock in the Over-the-Counter Market (the
“Principal Market”), and will comply in all respects with the Company’s reporting, filing and other obligations under the bylaws or rules of the Principal Market, as applicable. As of the date of this Agreement, the Over-the-Counter
Market is the Principal Market. 
 (c) Market Regulations. The Company shall notify the Commission, the Principal Market and
applicable state authorities, in accordance with their requirements, of the transactions contemplated by this Agreement, and shall take all other necessary action and proceedings as may be required and permitted by applicable law, rule and
regulation, for the legal and valid issuance of the Securities to Subscriber. 
 (d) Filing Requirements. From the date of this
Agreement and until the sooner of (i) two (2) years after the date hereof or (ii) until all the Preferred Stock is no longer outstanding, the Company will (A) comply in all respects with its reporting and filing obligations under
the 1934 Act and (B) cause its Common Stock to continue to be registered under Section 12(g) of the 1934 Act. The Company will use its best efforts not to take any action or file any document (whether or not permitted by the 1933 Act or
the 1934 Act or the rules thereunder) to terminate or suspend such registration or to terminate or suspend its reporting and filing obligations under said acts. . 
 (e) Taxes. From the date of this Agreement and until the sooner of (i) two (2) years after the date hereof, or (ii) until all the Preferred Stock is no longer outstanding, the Company will
promptly pay and discharge, or cause to be paid and discharged, when due and payable, all lawful taxes, assessments and governmental charges or levies imposed upon the income, profits, property or business of the Company; provided, however, that any
such tax, assessment, charge or levy need not be paid if the validity thereof shall currently be contested in good faith by appropriate proceedings and if the Company shall have set aside on its books adequate reserves with respect thereto, and
provided, further, that the Company will pay all such taxes, assessments, charges or levies forthwith upon the commencement of proceedings to foreclose any lien which may have attached as security therefore. 
 (f) Insurance. From the date of this Agreement and until the sooner of (i) two (2) years after the date hereof, or (ii) until all
the Preferred Stock is no longer outstanding, the Company will keep its assets which are of an insurable character insured by financially sound and reputable insurers against loss or damage by fire, explosion and other risks customarily insured
against by companies in the Company’s line of business, in amounts sufficient to prevent the Company from becoming a co-insurer and not in any event less than one hundred percent (100%) of the insurable value of the property insured; and
the Company will maintain, with financially sound and reputable insurers, insurance against other hazards and risks and liability to persons and property to the extent and in the manner customary for companies in similar businesses similarly
situated and to the extent available on commercially reasonable terms. 
 (g) Books and Records. From the date of this Agreement and
until the sooner of (i) two (2) years after the date hereof, or (ii) until all the Preferred Stock is no longer outstanding, the Company 
  

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 will keep true records and books of account in which full, true and correct entries will be made of all dealings or
transactions in relation to its business and affairs in accordance with generally accepted accounting principles applied on a consistent basis. 
 (h) Governmental Authorities. From the date of this Agreement and until the sooner of (i) two (2) years after the date hereof, or (ii) until all the Preferred Stock is no longer outstanding, the Company shall duly
observe and conform in all material respects to all valid requirements of governmental authorities relating to the conduct of its business or to its properties or assets. 
 (i) Intellectual Property. From the date of this Agreement and until the sooner of (i) two (2) years after the date hereof, or
(ii) until all the Preferred Stock is no longer outstanding, the Company shall maintain in full force and effect its corporate existence, rights and franchises and all licenses and other rights to use intellectual property owned or possessed by
it and reasonably deemed to be necessary to the conduct of its business, unless it is sold for value. 
 (j) Properties. From the
date of this Agreement and until the sooner of (i) two (2) years after the date hereof, or (ii) until all the Preferred Stock is no longer outstanding, the Company will keep its properties in good repair, working order and condition,
reasonable wear and tear excepted, and from time to time make all necessary and proper repairs, renewals, replacements, additions and improvements thereto; and the Company will at all times comply with each provision of all leases to which it is a
party or under which it occupies property if the breach of such provision could reasonably be expected to have a Material Adverse Effect. 
 (k) Non-Public Information. The Company covenants and agrees that neither it nor any other person acting on its behalf will provide any Subscriber or its agents or counsel with any information that the Company believes constitutes
material non-public information, unless prior thereto Subscriber shall have agreed in writing to receive such information. The Company understands and confirms that Subscriber shall be relying on the foregoing representations in effecting
transactions in securities of the Company. 
 8. Covenants of the Company and Subscriber Regarding Indemnification. 
 (a) The Company agrees to indemnify, hold harmless, reimburse and defend Subscriber, the Subscriber’s officers, directors, agents, Affiliates,
control persons, and principal shareholders or other equity holders against any claim, cost, expense, liability, obligation, loss or damage (including reasonable legal fees and expenses) of any nature, incurred by or imposed upon the Subscriber or
any such person which results, arises out of or is based upon (i) any misrepresentation by Company or breach of any warranty by Company in this Agreement, in the Documents or in any Exhibits attached hereto, or other agreement delivered
pursuant hereto; or (ii) after any applicable notice and/or cure periods, any breach or default in performance by the Company of any covenant or undertaking to be performed by the Company hereunder, or any other agreement entered into by the
Company and Subscriber relating hereto. 
 (b) Subscriber agrees to indemnify, hold harmless, reimburse and defend the Company and each of
the Company’s officers, directors, agents, Affiliates, control persons against any claim, cost, expense, liability, obligation, loss or damage (including reasonable legal fees and expenses) of any nature, incurred by or imposed upon the Company
or any such person which results, arises out of or is based upon (i) any material misrepresentation by Subscriber in this Agreement or in any Exhibits or Schedules attached hereto, or other agreement delivered pursuant hereto; or
(ii) after any applicable notice and/or cure periods, any breach or default in performance by Subscriber of any covenant or undertaking to be performed by Subscriber hereunder, or any other agreement entered into by the Company and Subscriber,
relating hereto. 
  

 10 

 (c) In no event shall the liability of Subscriber or permitted successor hereunder or under any
Transaction Document or other agreement delivered in connection herewith be greater in amount than the dollar amount of the Purchase Price. 
 9. Miscellaneous. 
 (a) Notices. All notices, demands, requests, consents, approvals, and other communications required or
permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by
reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any
notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or
number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours
where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The
addresses for such communications shall be: (i) if to the Company, to: Viragen International, Inc., 865 S.W. 78th Avenue, Suite 100, Plantation, Florida 33324, telecopier: (954) 233-1414, and (ii) if to the Subscriber, to: the one or more addresses and telecopier numbers indicated on the signature page hereto. The Company may change
its address for notices but only to an address and fax number located in the United States. 
 (b) Entire Agreement; Assignment. This
Agreement, the Documents and other documents delivered in connection herewith represent the entire agreement between the parties hereto with respect to the subject matter hereof and may be amended only by a writing executed by both parties. Neither
the Company nor the Subscriber has relied on any representations not contained or referred to in this Agreement and the documents delivered herewith. No right or obligation of the Company shall be assigned without prior notice to and the written
consent of the Subscriber. 
 (c) Counterparts/Execution. This Agreement may be executed in any number of counterparts and by the
different signatories hereto on separate counterparts, each of which, when so executed, shall be deemed an original, but all such counterparts shall constitute but one and the same instrument. This Agreement may be executed by facsimile signature
and delivered by facsimile transmission. 
 (d) Law Governing this Agreement. This Agreement and all disputes arising therefrom and
the transaction contemplated thereby shall be governed by and construed in accordance with the laws of the State of Florida without regard to conflicts of laws principles that would result in the application of the substantive laws of another
jurisdiction. Any action brought by any party against another party concerning this Agreement or any of the transactions contemplated by this Agreement shall be brought only in the civil or state courts of Florida or in the federal courts located in
Broward County, Florida. The parties and the individuals executing this Agreement and other agreements referred to herein or delivered in connection herewith on behalf of the Company agree to submit to the personal jurisdiction of such courts for
such purposes and hereby waive trial by jury in any such action or proceeding. The prevailing party shall be entitled to recover from the adverse party its reasonable attorney’s fees, costs and expenses. In the event that any provision of
this Agreement or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be
deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. 
  

 11 

 (e) Specific Enforcement, Consent to Jurisdiction. The Company and Subscriber acknowledge and
agree that irreparable damage may occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled to
seek one or more preliminary and final injunctions to prevent or cure breaches of the provisions of this Agreement and to enforce specifically the terms and provisions hereof, this being in addition to any other remedy to which any of them may be
entitled by law or equity. Subject to Section 9(d) hereof, each of the Company, Subscriber and any signator hereto in his personal capacity hereby waives, and agrees not to assert in any such suit, action or proceeding, any claim that it is not
personally subject to the jurisdiction in Florida of such court, that the suit, action or proceeding is brought in an inconvenient forum or that the venue of the suit, action or proceeding is improper. Nothing in this Section shall affect or limit
any right to serve process in any other manner permitted by law. 
 [THIS SPACE INTENTIONALLY LEFT BLANK] 
  

 12 

 SIGNATURE PAGE TO SUBSCRIPTION AGREEMENT (A) 
 Please acknowledge your acceptance of the foregoing Subscription Agreement by signing and returning a copy to the undersigned whereupon it shall become a
binding agreement between us. 
  

			
	 VIRAGEN INTERNATIONAL, INC.
 a Delaware
corporation

		
	By:	 	 /s/ Dennis W. Healey

	Name:	 	Dennis W. Healey
	Title:	 	Executive Vice President/CFO
	
	Dated:
                            , 2006

  

					
	 SUBSCRIBER
	  	 PURCHASE
 PRICE AND
 STATED VALUE
 OF PREFERRED
 STOCK
	 	 COMMON
 SHARES

	 [NAME]
	  		 	
	 [Address]
	  		 	
	              OR	  		 	
			
	 Fax:
	  		 	
			
	  
	  		 	
	 (Signature)
	  		 	
	 By:
	  		 	

 SCHEDULE 1 
 1.1. Deliveries. 
 (a) On the Closing Date, the Company shall deliver or cause to be delivered to each Subscriber the following:

 (i) this Agreement duly executed by the Company; 
 (ii) certificates registered in the name of the Subscriber representing the number of shares of Series D Preferred Stock being sold to
such Subscriber hereunder as set forth opposite such Subscriber’s name on the signature page hereto; and 
 (iii) a
certificate evidencing the incorporation (or other organization) and good standing of the Company and each of its Subsidiaries in such entity’s state of incorporation or organization and, as to the Company, in the State of Florida, as of a date
within ten (10) days of the Closing Date; 
 (b) On the Closing Date, each Subscriber shall deliver or cause to be delivered to the
Company the following: 
 (i) this Agreement duly executed by such Subscriber; and 
 (ii) Subscriber’s Purchase Price for the Preferred Stock being purchased. 
 1.2. Closing Conditions. 
 (a) The obligations of the Company
hereunder in connection with the Closing are subject to the following conditions being met: 
 (i) the accuracy in all
respects when made and on the Closing Date of the representations and warranties of the Subscribers contained herein; 
 (ii)
all obligations, covenants and agreements of the Subscribers required to be performed at or prior to the Closing Date shall have been performed; and 
 (iii) the delivery by the Subscribers of the items set forth in Section 1.1(b) of this Agreement. 
 (b)
The respective obligations of the Subscribers hereunder in connection with the Closing are subject to the following conditions being met: 
 (i) the accuracy in all respects on the date hereof and on the Closing Date of the representations and warranties of the Company contained herein; 
 (ii) all obligations, covenants and agreements of the Company required to be performed at or prior to the Closing Date shall have been
performed; 
 (iii) the delivery by the Company of the items set forth in Section 1.1(a) of this Agreement; 

 

 i 

 (iv) there shall have been no Material Adverse Effect with respect to the Company since
the date hereof; and 
 (v) from the date hereof to the Closing Date, trading in the Common Stock shall not have been
suspended by the Commission, and, at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg Financial Markets shall not have been suspended or limited, or minimum prices shall not have been established on
securities whose trades are reported by such service, or on any Trading Market, nor shall a banking moratorium have been declared either by the United States or Florida or New York State authorities nor shall there have occurred any material
outbreak or escalation of hostilities or other national or international calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in each case, in the reasonable judgment of Subscriber, makes it
impracticable or inadvisable to purchase the Preferred Stock at the Closing. 
  

 iiChange in Control Severance Benefit Plan and Form of Participation Notice

 Exhibit 10.1 
 RACKABLE SYSTEMS, INC. 
 EXECUTIVE CHANGE IN CONTROL SEVERANCE BENEFIT PLAN 
  

	1.	INTRODUCTION. 

 The Rackable Systems,
Inc. Executive Change in Control Severance Benefit Plan (the “Plan”) is hereby established by Rackable Systems, Inc. (the “Company”) effective October 3, 2006 (the “Effective
Date”). The purpose of the Plan is to provide for the payment of certain severance benefits to certain eligible executive employees of the Company and any of its Subsidiaries if such employees are subject to qualifying employment
terminations. This Plan shall supersede, as to any Participant, any severance or change in control benefit plan, policy, or practice previously maintained by the Company or any Subsidiary that is not in writing. For the avoidance of doubt, any
written severance and/or change in control benefit provisions of any offer letter, employment agreement, equity incentive plan (or an associated award agreement) or other contract between the Company or any Subsidiary and a Participant is not
superseded by the Plan except as may be set forth in such other plan or agreement or in a Participation Notice. This Plan shall not supersede or otherwise amend any written or unwritten severance or change in control benefit plan, policy or practice
of the Company with respect to individuals who are not Participants. 
  

	2.	DEFINITIONS. 

 For purposes of the
Plan, except as may be provided in an individual Participation Notice, the following terms are defined as follows: 
 (a)
“Announcement” means the public announcement of the signing of an agreement pursuant to which a Change in Control is effectuated that results in the payment of benefits pursuant to this Plan. 
 (b) “Base Value” means the amount equal to the Pre-Announcement Average Value multiplied by the Fully Diluted Shares
Outstanding immediately prior to the Announcement. The “Pre-Announcement Average Value” means the average of the closing sales price per share of the Company’s common stock as reported on the Nasdaq Global Market (or if
the Nasdaq Global Market is not the primary exchange or national reporting system upon which the Company’s common stock is traded or quoted, then such other primary exchange or national reporting system upon which the Company’s common
stock is traded or quoted) for the ten (10) trading days immediately prior to the date of the Announcement. In the event there is a stock split, stock dividend or similar adjustment in the outstanding common stock of the Company during the
period when the Pre-Announcement Average Value is determined, an adjustment shall be made by the Plan Administrator to the Pre-Announcement Average Value so as to most closely approximate the Pre-Announcement Average Value that would have resulted
had the change in the outstanding common stock of the Company occurred prior to the period in which the Pre-Announcement Average Value was computed. 
  

 1. 

 (c) “Benefit Percentage” for a Participant shall be set forth on the
Participant’s Participation Notice. 
 (d) “Board” means the Board of Directors of Rackable Systems, Inc.

 (e) “Change in Control” means the occurrence, in a single transaction or in a series of related
transactions, of either of the following events: 
 (i) (x) there is consummated (A) a merger, consolidation or similar
transaction involving (directly or indirectly) the Company or (B) a tender offer or exchange offer addressed to the stockholders of the Company and (y), immediately after the consummation of such merger, consolidation or similar transaction or
such tender or exchange offer, the stockholders of the Company immediately prior thereto do not Own, directly or indirectly, either (A) outstanding voting securities representing more than fifty percent (50%) of the combined outstanding
voting power of the surviving Entity in such merger, consolidation or similar transaction or (B) more than fifty percent (50%) of the combined outstanding voting power of the parent of the surviving Entity in such merger, consolidation or
similar transaction, in each case in substantially the same proportions as their Ownership of the outstanding voting securities of the Company immediately prior to such transaction; or 
 (ii) there is consummated a sale, lease, exclusive license or other disposition of all or substantially all of the consolidated assets of the
Company and its Subsidiaries, other than a sale, lease, license or other disposition of all or substantially all of the consolidated assets of the Company and its Subsidiaries to an Entity, more than fifty percent (50%) of the combined voting
power of the voting securities of which are Owned by stockholders of the Company in substantially the same proportions as their Ownership of the outstanding voting securities of the Company immediately prior to such sale, lease, license or other
disposition. 
 For the avoidance of doubt, the term Change in Control shall not include a sale of assets, merger or other transaction
effected exclusively for the purpose of changing the domicile of the Company. 
 (f) “Change in Control
Termination” means a Covered Termination that occurs within the period commencing three (3) months prior to a Change in Control and ending on the Participant’s Participation Termination Date; provided, however, that the
foregoing notwithstanding, a Participant shall not have incurred a Change in Control Termination if a Change in Control shall not have occurred on or prior to the Participant’s Participation Termination Date. 
 (g) “Change in Control Value” means the Value per share of common stock received by the stockholders of the Company
pursuant to a Change in Control multiplied by the Fully Diluted Shares Outstanding immediately prior to the Change in Control. 
 (h)
“Code” means the Internal Revenue Code of 1986, as amended. 
 (i) “Company” means
Rackable Systems, Inc., or any successor entity thereto. 
  

 2. 

 (j) “Constructive Termination” means a resignation of employment by a
Participant within ninety (90) days after one of the following is undertaken without the Participant’s express written consent: 
 (i) the Company or any of its Subsidiaries significantly reduces the Participant’s duties, authority or responsibilities, relative to the Participant’s duties, authority or responsibilities as in effect immediately prior to
such reduction, taken as a whole; provided, however, that a change in the Participant’s title shall not be taken into account in determining if the Participant’s duties, authority or responsibilities have been reduced for the
purposes of this Section 2(j)(i); 
 (ii) the Company or any of its Subsidiaries reduces the Participant’s base salary,
target bonus and/or other cash compensation programs, taken as a whole, unless such reduction is made in connection with an across-the-board, proportionate reduction of substantially all executives’ annual base salaries, bonuses, plans and/or
other cash compensation programs instituted because the Company and its Subsidiaries, taken as a whole, are in financial distress; 
 (iii) the Company or any of its Subsidiaries reduces or eliminates the Participant’s eligibility to participate in (or the benefits associated with participating in) the Company or any of its Subsidiaries’ benefit programs
that is inconsistent with the eligibility to participate in (and benefits associated with participation in) such programs enjoyed by similarly situated employees of the Company or any of its Subsidiaries; or 
 (iv) a relocation of the Participant’s primary business office to a location more than thirty (30) miles from the location at which the
Participant predominately performed duties prior to such relocation, except for required travel by the Participant on the Company or any of its Subsidiaries’ business to an extent substantially consistent with the Participant’s prior
business travel obligations. 
 Notwithstanding the foregoing, a termination shall not constitute a Constructive Termination based on conduct described above
unless (A) within the fifteen (15) day period following the occurrence of the conduct, the Participant provides the Chief Executive Officer of the Company (provides the Board in the case of a Participant who is the Chief Executive Office)
with written notice (the “Constructive Termination Notice”) specifying (x) the particulars of the conduct and (y) that the Participant deems such conduct to be described in (i), (ii), (iii) or (iv) of this
Section 2(j), and (B) the conduct described has not been cured within fifteen (15) days following receipt by the Chief Executive Officer of the Company (by the Board in the case of a Participant who is the Chief Executive Office) of
such notice. 
 (k) “Covered Termination” means either (A) an Involuntary Termination Without Cause or
(B) a Constructive Termination. For the avoidance of doubt, a termination of employment of a Participant due to death or disability shall not qualify as a Covered Termination. 
  

 3. 

 (l) “Eligible Employee” means any individual (A) who is an officer of
the Company or any of its Subsidiaries and (B) who has been designated as an Eligible Employee by the Plan Administrator, in its sole discretion. 
 (m) “Entity” means a corporation, partnership, limited liability company or other entity. 
 (n) “Fully Diluted Shares Outstanding” means, as of any relevant date, the number of shares of common stock outstanding using the treasury stock method as described in SFAS No. 128
– Earnings Per Share. 
 (o) “Incremental Change in Control Value” means the amount, if any, by which the
Change in Control Value exceeds the Base Value. 
 (p) “Involuntary Termination Without Cause” means a
termination by the Company or any of its Subsidiaries of a Participant’s employment relationship with the Company or any of its Subsidiaries for any reason other than the Participant: 
 (i) willfully refuses to perform in any material respect the Participant’s duties or responsibilities for the Company or any of its
Subsidiaries or willfully disregards in any material respect any financial or other budgetary limitations established in good faith by the Board; 
 (ii) willfully engages in conduct that causes material and demonstrable injury, monetarily or otherwise, to the Company or any of its Subsidiaries, including, but not limited to, misappropriation or conversion of assets of the
Company or any of its Subsidiaries (other than non-material assets); or 
 (iii) engages in an act of moral turpitude causing material
and demonstrable injury to the Company or otherwise demonstrates unfitness to serve as an officer of the Company or conviction of or entry of a plea of nolo contendere to a felony. 
 No act or failure by the Participant shall be deemed “willful” if done, or omitted to be done, in good faith and with the reasonable belief
that the action or omission was in the best interest of the Company or any affiliates. For the avoidance of doubt, a transfer of employment of a Participant from (x) the Company or one of its Subsidiaries to (y) the Company, one of its
Subsidiaries or an Entity that acquires control of the Company shall not be deemed an Involuntary Termination Without Cause; however, depending on the facts and circumstances, such a transfer of employment may, in conjunction with a resignation by
the Participant, result in a Constructive Termination. 
 (q) “Own,” “Owned,” “Owner,”
“Ownership” A person or Entity shall be deemed to “Own,” to have “Owned,” to be the “Owner” of, or to have acquired “Ownership” of securities if such person or Entity, directly or indirectly,
through any contract, arrangement, understanding, relationship or otherwise, is the beneficial owner of such securities. For example, a holder of stock of a corporation (the “direct corporation”) is deemed to Own such stock and to Own a
pro rata portion (based on relative holdings of the stock of the direct corporation) of any stock of any other corporation Owned by the direct corporation. 
  

 4. 

 (r) “Participant” means an Eligible Employee (A) who has received,
signed and returned to the Company a Participation Notice, (B) either (x) who has remained continuously employed by the Company or a Subsidiary from the commencement of the Eligible Employee’s participation in the Plan until the
Change in Control or (y) whose employment with the Company or any of its Subsidiaries terminates due to a Covered Termination prior to such Change in Control, and (C) whose participation in the Plan did not otherwise terminate prior to the
Change in Control. 
 (s) “Participation Notice” means the latest notice delivered by the Company to an
Eligible Employee informing the Eligible Employee that the Eligible Employee is a participant in the Plan. A Participation Notice shall be in such form as may be determined by the Company. The Company reserves the right to amend a Participation
Notice in any way and at any time; provided, however, that no such amendment shall be effective as to any Participant who would be adversely affected by such amendment unless such Participant consents in writing to such amendment. 

(t) “Participation Termination Date” means the date a Participant’s participation in the Plan ends as set forth in
the Participant’s Participation Notice. 
 (u) “Plan Administrator” means the Board or any committee duly
authorized by the Board to administer the Plan. The Plan Administrator may, but is not required to be, the Compensation Committee of the Board. The Board may at any time administer the Plan, in whole or in part, notwithstanding that the Board has
previously appointed a committee to act as the Plan Administrator. 
 (v) “Subsidiary” means, with respect to
the Company, (A) any corporation of which more than fifty percent (50%) of the outstanding capital stock having ordinary voting power to elect a majority of the board of directors of such corporation (irrespective of whether, at the time,
stock of any other class or classes of such corporation shall have or might have voting power by reason of the happening of any contingency) is at the time, directly or indirectly, Owned by the Company, and (B) any Entity other than a
corporation in which the Company has a direct or indirect interest (whether in the form of voting or participation in profits or capital contribution) of more than fifty percent (50%). 
 (w) “Value” means, with respect to (i) cash, such amount in cash, (ii) with respect to a share of stock of
another Entity, and such stock is publicly traded, such Value shall be deemed to be the last closing sales price of such stock as reported on the primary exchange or national reporting system upon which such Entity’s stock it traded or quoted,
and (iii) any other consideration, such Value shall be deemed to be the fair market value as determined in good faith by the Plan Administrator on the date such determination is made. 
  

	3.	ELIGIBILITY FOR BENEFITS. 

 (a) General Rules. Subject to the limitations set forth in this Section 3 and in Section 6, in the event of a Change in Control Termination, the Company shall provide the severance benefits described
in Section 4 to each affected Participant. 
  

 5. 

 (b) Exceptions to Benefit Entitlement. An employee, including an employee who otherwise is a
Participant, will not receive benefits under the Plan (or will receive reduced benefits under the Plan) in the following circumstances, as determined by the Plan Administrator in its sole discretion: 
 (i) The employee’s employment terminates or is terminated for any reason other than a Change in Control Termination. 
 (ii) The employee does not confirm in writing that he or she shall be subject to the provisions of the employee’s proprietary information
agreement with the Company or the employee’s confidentiality agreement with the Company. 
 (c) Termination or Return of
Benefits. In the event of a Change in Control Termination, a Participant’s right to receive benefits under this Plan shall terminate immediately (and any benefits received pursuant to this Plan shall be immediately returned to the Company)
if, at any time prior to or during the twelve (12) month period following such Change in Control Termination, the Participant, without the prior written approval of the Plan Administrator: 
 (i) willfully breaches a material provision of the Participant’s proprietary information or confidentiality agreement with the Company, as
referenced in Section 3(b)(ii); 
 (ii) encourages or solicits any of the Company’s then current employees to leave the
Company’s employ for any reason or interferes in any other manner with employment relationships at the time existing between the Company and its then current employees; or 
 (iii) induces any of the Company’s then current clients, customers, suppliers, vendors, distributors, licensors, licensees or other third
party to terminate or materially diminish their existing business relationship with the Company or interferes in any other manner with any existing business relationship between the Company and any then current client, customer, supplier, vendor,
distributor, licensor, licensee or other third party. 
  

	4.	AMOUNT OF BENEFITS. 

 In the event a Participant incurs a Change in Control Termination, the Participant shall receive the benefits set forth in this Section 4, subject, however, to the payment provisions set forth in Section 5
and the other limitations and exclusions set forth in this Plan. 
 (a) Cash Benefits. Subject to Section 4(b), the Company shall
make cash payments to each such Participant in an amount equal to the Incremental Change in Control Value multiplied by the Participant’s Benefit Percentage. 
 (b) Parachute Payments. 
 (i) Except as otherwise provided in an agreement between a
Participant and the Company, if any payment or benefit the Participant would receive (whether pursuant to this Plan or otherwise) in connection with a Change in Control from the Company or otherwise (“Payment”) would
(i) constitute a “parachute payment” within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of 

  

 6. 

 
the Code (the “Excise Tax”), then the benefits payable pursuant to this Plan to such Participant shall be reduced by the lesser of
(x) all of the benefits payable pursuant to this Plan to such Participant or (y) the amount necessary so that such Payment (after reduction) shall be equal to the Reduced Amount. The “Reduced Amount” shall be the largest portion
of the Payment (prior to reduction) that would result in no portion of the Payment (after reduction) being subject to the Excise Tax. If a reduction in payments or benefits constituting “parachute payments” is necessary so that the Payment
(after reduction) equals the Reduced Amount, the benefits under this Plan shall be reduced first unless the Participant elects in writing a different order (provided, however, that such election shall be subject to Company approval if made on or
after the date on which the event that triggers the Payment occurs). All determinations required to be made hereunder, including, without limitation, whether a Payment is (or will be) subject to the Excise Tax and any additional assumptions to be
utilized in arriving at such determinations, shall be made in accordance with the provisions set forth in Section 4(b)(ii). 
 (ii)
The accounting firm engaged by the Company for the purpose of rendering general tax advice as of the day prior to the effective date of the Change in Control shall perform the calculations required by Section 4(b)(i). If the accounting firm
so engaged by the Company is serving as accountant, tax advisor or auditor for the individual, entity or group effecting the Change in Control, the Company shall appoint a nationally recognized accounting firm that is not so serving to make the
determinations required hereunder. The Company shall bear all expenses with respect to the determinations by such accounting firm required to be made hereunder. The accounting firm engaged to make the determinations hereunder shall provide its
calculations, together with detailed supporting documentation, to the Company and the Participant within fifteen (15) calendar days after the date on which the Participant’s right to a Payment is triggered (if requested at that time by the
Company or the Participant) or such other time as may be jointly requested by the Company and the Participant. Any good faith determinations of the accounting firm made hereunder shall be final, binding and conclusive upon the Company and the
Participant. 
 (c) Mitigation. Except as otherwise specifically provided herein, a Participant shall not be required to mitigate
damages or the amount of any payment provided under this Plan by seeking other employment or otherwise, nor shall the amount of any payment provided for under this Plan be reduced by any compensation earned by a Participant as a result of employment
by another employer or any retirement benefits received by such Participant after the date of the Participant’s Change in Control Termination. 
 (d) Non-Duplication of Benefits. Except as otherwise specifically provided for herein, no Participant is eligible to receive benefits under this Plan more than one time. This Plan is designed to provide certain severance pay and
benefits to Participants pursuant to the terms and conditions set forth in this Plan. Subject to Section 6(b) below, the payments pursuant to this Plan are in addition to, and not in lieu of, any unpaid salary, bonuses, severance or other
benefits to which a Participant may be entitled (except to the extent expressly waived in writing) under any other written employment or severance agreement or otherwise for the period ending with the Participant’s Change in Control
Termination. 
  

 7. 

	5.	TIME OF PAYMENT AND FORM OF BENEFITS. 

 (a) General Rules. Except as otherwise provided herein, the payment of benefits in Section 4 shall be paid in a lump-sum payment, subject to
applicable withholding, within five (5) business days after the determinations required by Section 4(b)(i) have been delivered to the Company and the Participant but in no event later than thirty (30) calendar days after the later of
the Change in Control Termination and the Change in Control, and shall otherwise be made in accordance with and subject to the Company’s normal payroll practices. 
 (b) Application of Section 409A. If the Plan Administrator determines that any cash benefit provided under Section 4(a) fails to satisfy the distribution requirement of Section 409A(a)(2)(A) of
the Code as a result of the application of Section 409A(a)(2)(B)(i) of the Code, the payment of such benefit shall be accelerated to the minimum extent necessary so that the benefit is not subject to the provisions of Section 409A(a)(1) of
the Code. (It is the intention of the preceding sentence to apply the short-term deferral provisions of Section 409A of the Code, and the regulations and other guidance thereunder, to such payments and benefits. The payment schedule as revised
after the application of such preceding sentence shall be referred to as the “Revised Payment Schedule.”) However, if there is no Revised Payment Schedule that would avoid the application of Section 409A(a)(1) of the
Code, the payment of such benefits shall not be paid pursuant to the original payment schedule or a Revised Payment Schedule and instead the payment of such benefits shall be delayed to the minimum extent necessary so that such benefits are not
subject to the provisions of Section 409A(a)(1) of the Code. The Plan Administrator may attach conditions to or adjust the amounts paid pursuant to this Section 5(b) to preserve, as closely as possible, the economic consequences that would
have applied in the absence of Section 409A of the Code; provided, however, that no such condition shall result in the payments being subject to Section 409A(a)(1) of the Code. 
 (c) Withholding. All payments under the Plan will be subject to all applicable withholding obligations of the Company, including, without
limitation, obligations to withhold for federal, state and local income and employment taxes. 
 (d) Indebtedness of Participants. If
a Participant is indebted to the Company on the date any benefits are payable to the Participant pursuant to this Plan, the Plan Administrator reserves the right to offset any such benefits by the amount of such indebtedness. 
  

	6.	LIMITATIONS ON BENEFITS. 

 (a) Release. In order to be eligible to receive benefits under the Plan, a Participant must execute a general waiver and release in substantially the form attached hereto as Exhibit A,
Exhibit B, or Exhibit C, as appropriate, and such release must become effective in accordance with its terms. Unless a Change in Control has occurred, the Plan Administrator, in its sole discretion, may modify the form of the
required release to comply with applicable law and shall determine the form of the required release, which may be incorporated into a termination agreement or other agreement with the Participant. 
 (b) Certain Reductions. The Plan Administrator, in its sole discretion, shall have the authority to reduce a Participant’s severance benefits
hereunder, in whole or in part, by the 

  

 8. 

 
amount of any other severance benefits, pay in lieu of notice, or other similar benefits payable to the Participant by the Company that become payable in
connection with the Participant’s termination of employment pursuant to any applicable legal requirement, including, without limitation, the Worker Adjustment and Retraining Notification Act (the “WARN Act”). The Plan
Administrator’s decision to apply such reductions to the severance benefits of one Participant and the amount of such reductions shall in no way obligate the Plan Administrator to apply the same reductions in the same amounts to the severance
benefits of any other Participant, even if similarly situated. 
  

	7.	RIGHT TO INTERPRET PLAN; AMENDMENT AND TERMINATION.

 (a) Exclusive Discretion. The Plan Administrator shall have the exclusive discretion and authority to establish rules,
forms, and procedures for the administration of the Plan, and to construe and interpret the Plan and to decide any and all questions of fact, interpretation, definition, computation or administration arising in connection with the operation of the
Plan, including, but not limited to, the eligibility to participate in the Plan and amount of benefits paid under the Plan. The rules, interpretations, computations and other actions of the Plan Administrator shall be binding and conclusive on all
persons. 
 (b) Amendment or Termination. The Company reserves the right to amend or terminate this Plan or the benefits provided
hereunder at any time; provided, however, that no such amendment or termination shall be effective as to any Participant who would be adversely affected by such amendment or termination unless such Participant consents in writing to such
amendment or termination. Any action amending or terminating the Plan shall be in writing and executed by the Chief Executive Officer or General Counsel of the Company. 
  

	8.	NO IMPLIED EMPLOYMENT CONTRACT. 

 The Plan shall not be deemed (i) to give any employee or other person any right to be retained in the employ of the Company, or (ii) to
interfere with the right of the Company to discharge any employee or other person at any time, with or without cause, which right is hereby reserved. 
  

	9.	GENERAL PROVISIONS. 

 (a) Notices. Any notice, demand or request required or permitted to be given by either the Company or a Participant pursuant to the terms of this Plan shall be in writing and shall be deemed given when delivered personally or
deposited in the U.S. mail, First Class with postage prepaid, and addressed to the parties, in the case of the Company, at 1933 Milmont Drive, Milpitas, CA 95035, Attention General Counsel, and, in the case of a Participant, at the address as set
forth in the Company’s employment file maintained for the Participant as previously furnished by the Participant or such other address as a party may request by notifying the other in writing. 
 (b) Legal Construction. This Plan is intended to be governed by and shall be construed in accordance with the laws of the State of California.

  

 9. 

 (c) Basis of Payments to and from Plan. The Plan shall be unfunded, and all benefits hereunder
shall be paid only from the general assets of the Company. 
 (d) Transfer and Assignment. The rights and obligations of a Participant
under this Plan may not be transferred or assigned without the prior written consent of the Company. This Plan shall be binding upon any surviving entity resulting from a Change in Control and upon any other person who is a successor by merger,
acquisition, consolidation or otherwise to the business formerly carried on by the Company without regard to whether or not such person or entity actively assumes the obligations hereunder. 
 (e) Waiver. Any Party’s failure to enforce any provision or provisions of this Plan shall not in any way be construed as a waiver of any such
provision or provisions, nor prevent any Party from thereafter enforcing each and every other provision of this Plan. The rights granted the Parties herein are cumulative and shall not constitute a waiver of any Party’s right to assert all
other legal remedies available to it under the circumstances. 
 (f) Severability. Should any provision of this Plan be declared or
determined to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired. 
 (g) Section Headings. Section headings in this Plan are included for convenience of reference only and shall not be considered part of this Plan for any other purpose. 
  

	10.	EXECUTION. 

 To record the adoption
of the Plan as set forth herein, Rackable Systems, Inc. has caused its duly authorized officer to execute the same as of the Effective Date. 
  

			
	RACKABLE SYSTEMS, INC.
		
	By:	 	 /s/ Todd R. Ford

	Its:	 	 President

  

 10. 

 For Employees Age 40 or Older 
 Individual Termination 
 EXHIBIT A 
 RELEASE AGREEMENT 
 I understand and
agree completely to the terms set forth in the Rackable Systems, Inc. Executive Change in Control Severance Benefit Plan (the “Plan”). 
 I understand that this Release Agreement (“Release”), together with the Plan, constitutes the complete, final and exclusive embodiment of the entire agreement between the Company and me with
regard to the subject matter hereof. I am not relying on any promise or representation by the Company that is not expressly stated therein. Certain capitalized terms used in this Release are defined in the Plan. 
 I hereby confirm my obligations under the Company’s proprietary information and inventions agreement. 
 Except as otherwise set forth in this Release, I hereby generally and completely release Rackable Systems, Inc. and its current and former directors,
officers, employees, shareholders, partners, agents, attorneys, predecessors, successors, Company and subsidiary entities, insurers, affiliates, and assigns from any and all claims, liabilities and obligations, both known and unknown, that arise out
of or are in any way related to events, acts, conduct, or omissions occurring prior to my signing of this Release. My general release of claims includes, but is not limited to, a release of: (1) all claims arising out of or in any way related
to my employment with the Company, or the termination of that employment; (2) all claims related to my compensation or benefits from the Company, including salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay,
fringe benefits, stock, stock options, or any other equity or ownership interests in the Company; (3) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing, express or
implied; (4) all tort claims, including claims for fraud, defamation, emotional distress, and discharge in violation of public policy; and (5) all federal, state, and local statutory claims, including claims for discrimination, harassment,
retaliation, attorneys’ fees, or other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of 1990, the federal Age Discrimination in Employment Act of 1967 (as amended)
(“ADEA”), the California Constitution, the constitution of any other state, or the federal constitution, the California Labor Code, and the California Fair Employment and Housing Act (as amended) or similar statute of any
other state; provided, however, that nothing in this paragraph shall be construed in any way to release the Company from: (i) its obligation to indemnify me pursuant to agreement or applicable law; or (ii) any obligations undertaken
by the Company in the Plan; or (iii) the Company’s statutory obligations to provide payment of all accrued but unpaid wages (including all accrued but unpaid vacation pay); or (iv) any obligations it has under the express terms of a
written ERISA-qualified benefit plan (e.g., 401(k) account) or the express terms of any vested stock option or restricted stock awards[; or (v) the Company’s obligations to pay you severance benefits as set forth in Section
             of your offer letter/employment agreement dated             ]. I hereby represent that I have no
lawsuits, claims or actions pending in my name, or on behalf of any other person or entity, against the Company or any other person or entity subject to the release granted in this paragraph. 
  

 1. 

 For Employees Age 40 or Older 
 Individual Termination 
 I acknowledge that I am knowingly and voluntarily waiving and releasing any claims
and rights I may have under the ADEA. I also acknowledge that the consideration given for my release of ADEA claims and rights is in addition to anything of value to which I was already entitled. I further acknowledge that I have been advised by
this writing, as required by the ADEA, that: (a) my release of ADEA claims and rights does not apply to any rights or claims that arise after the date I sign this Release; (b) I should consult with an attorney prior to signing this
Release; (c) I have twenty-one (21) days to consider this Release (although I may choose voluntarily to sign it sooner); (d) I have seven (7) days following the date I sign this Release to revoke the Release by providing written
notice of revocation to the Company; and (e) this Release will not be effective until the date upon which the revocation period has expired unexercised, which will be the eighth day after I sign this Release (“Effective
Date”). 
 I acknowledge that I have read and understand Section 1542 of the California Civil Code which reads as follows:
“A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the
debtor.” I hereby expressly waive and relinquish all rights and benefits under Section 1542 and any law of any jurisdiction of similar effect with respect to my release of any claims hereunder, including but not limited to unknown and
unsuspected claims. 
 I hereby represent that I have been paid all compensation owed and for all hours worked, I have received all the leave
and leave benefits and protections for which I am eligible pursuant to the Family and Medical Leave Act, the California Family Rights Act, or otherwise, and I have not suffered any on-the-job injury for which I have not already filed a workers’
compensation claim. 
 I acknowledge that to become effective, I must sign this Release not later than twenty-one (21) days following
the date it is provided to me and I must promptly provide the signed Release to the Company. 
  

			
	EMPLOYEE
		
	Name:	 	  

	Date:	 	  

  

 2. 

 For Employees Age 40 or Older 
 Group Termination 
 EXHIBIT B 
 RELEASE AGREEMENT 
 I understand and
agree completely to the terms set forth in the Rackable Systems, Inc. Executive Change in Control Severance Benefit Plan (the “Plan”). 
 I understand that this Release Agreement (“Release”), together with the Plan, constitutes the complete, final and exclusive embodiment of the entire agreement between the Company and me with
regard to the subject matter hereof. I am not relying on any promise or representation by the Company that is not expressly stated therein. Certain capitalized terms used in this Release are defined in the Plan. 
 I hereby confirm my obligations under the Company’s proprietary information and inventions agreement. 
 Except as otherwise set forth in this Release, I hereby generally and completely release Rackable Systems, Inc. and its current and former directors,
officers, employees, shareholders, partners, agents, attorneys, predecessors, successors, Company and subsidiary entities, insurers, affiliates, and assigns from any and all claims, liabilities and obligations, both known and unknown, that arise out
of or are in any way related to events, acts, conduct, or omissions occurring prior to my signing of this Release. My general release of claims includes, but is not limited to, a release of: (1) all claims arising out of or in any way related
to my employment with the Company, or the termination of that employment; (2) all claims related to my compensation or benefits from the Company, including salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay,
fringe benefits, stock, stock options, or any other equity or ownership interests in the Company; (3) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing, express or
implied; (4) all tort claims, including claims for fraud, defamation, emotional distress, and discharge in violation of public policy; and (5) all federal, state, and local statutory claims, including claims for discrimination, harassment,
retaliation, attorneys’ fees, or other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of 1990, the federal Age Discrimination in Employment Act of 1967 (as amended)
(“ADEA”), the California Constitution, the constitution of any other state, or the federal constitution, the California Labor Code, and the California Fair Employment and Housing Act (as amended) or similar statute of any
other state; provided, however, that nothing in this paragraph shall be construed in any way to release the Company from: (i) its obligation to indemnify me pursuant to agreement or applicable law; or (ii) any obligations undertaken
by the Company in the Plan; or (iii) the Company’s statutory obligations to provide payment of all accrued but unpaid wages (including all accrued but unpaid vacation pay); or (iv) any obligations it has under the express terms of a
written ERISA-qualified benefit plan (e.g., 401(k) account) or the express terms of any vested stock option or restricted stock awards[; or (v) the Company’s obligations to pay you severance benefits as set forth in Section
             of your offer letter/employment agreement dated             ]. I hereby represent that I have no
lawsuits, claims or actions pending in my name, or on behalf of any other person or entity, against the Company or any other person or entity subject to the release granted in this paragraph. 
  

 1. 

 For Employees Age 40 or Older 
 Group Termination 
 I acknowledge that I am knowingly and voluntarily waiving and releasing any claims and
rights that I may have under the ADEA. I also acknowledge that the consideration given for my release of ADEA claims and rights is in addition to anything of value to which I was already entitled. I further acknowledge that I have been advised by
this writing, as required by the ADEA, that: (a) my release of ADEA claims and rights does not apply to any rights or claims that arise after the date I sign this Release; (b) I should consult with an attorney prior to signing this
Release; (c) I have forty-five (45) days to consider this Release (although I may choose voluntarily to sign it sooner); (d) I have seven (7) days following the date I sign this Release to revoke the Release by providing written
notice of revocation to the Company; and (e) this Release will not be effective until the date upon which the revocation period has expired unexercised, which will be the eighth day after I sign this Release (“Effective
Date”). 
 I hereby represent that, when I received this Release, the Company informed me in writing of: (1) any class,
unit, or group of individuals covered by the exit incentive or other employment termination program offered to me in connection with this Release, and any time limits applicable to such program; and (2) the job titles and ages of all
individuals eligible or selected for the program, and the ages of all individuals in the same job classification or organizational unit who are not eligible or selected for the program. 
 I acknowledge that I have read and understand Section 1542 of the California Civil Code which reads as follows: “A general
release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor.” I
hereby expressly waive and relinquish all rights and benefits under Section 1542 and any law of any jurisdiction of similar effect with respect to my release of any claims hereunder, including but not limited to unknown and unsuspected claims.

 I hereby represent that I have been paid all compensation owed and for all hours worked, I have received all the leave and leave benefits
and protections for which I am eligible pursuant to the Family and Medical Leave Act, the California Family Rights Act, or otherwise, and I have not suffered any on-the-job injury for which I have not already filed a workers’ compensation
claim. 
 I acknowledge that to become effective, I must sign this Release not later than forty-five (45) days following the date it is
provided to me and I must promptly provide the signed Release to the Company. 
  

			
	EMPLOYEE
		
	Name:	 	  

	Date:	 	  

  

 2. 

 For Employees Under Age 40 
 Individual and Group Termination 
 EXHIBIT C 
 RELEASE AGREEMENT 
 I understand and
agree completely to the terms set forth in the Rackable Systems, Inc. Executive Change in Control Severance Benefit Plan (the “Plan”). 
 I understand that this Release Agreement (“Release”), together with the Plan, constitutes the complete, final and exclusive embodiment of the entire agreement between the Company and me with
regard to the subject matter hereof. I am not relying on any promise or representation by the Company that is not expressly stated therein. Certain capitalized terms used in this Release are defined in the Plan. 
 I hereby confirm my obligations under the Company’s proprietary information and inventions agreement. 
 Except as otherwise set forth in this Release, I hereby generally and completely release Rackable Systems, Inc. and its current and former directors,
officers, employees, shareholders, partners, agents, attorneys, predecessors, successors, Company and subsidiary entities, insurers, affiliates, and assigns from any and all claims, liabilities and obligations, both known and unknown, that arise out
of or are in any way related to events, acts, conduct, or omissions occurring prior to my signing of this Release. My general release of claims includes, but is not limited to, a release of: (1) all claims arising out of or in any way related
to my employment with the Company, or the termination of that employment; (2) all claims related to my compensation or benefits from the Company, including salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay,
fringe benefits, stock, stock options, or any other equity or ownership interests in the Company; (3) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing; (4) all tort
claims, including claims for fraud, defamation, emotional distress, and discharge in violation of public policy; and (5) all federal, state, and local statutory claims, including claims for discrimination, harassment, retaliation,
attorneys’ fees, or other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of 1990, the California Constitution, the constitution of any other state, or the federal
constitution, the California Labor Code, and the California Fair Employment and Housing Act (as amended) or similar statute of any other state; provided, however, that nothing in this paragraph shall be construed in any way to release the
Company from: (i) its obligation to indemnify me pursuant to agreement or applicable law; or (ii) any obligations undertaken by the Company in the Plan; or (iii) the Company’s statutory obligations to provide payment of all
accrued but unpaid wages (including all accrued but unpaid vacation pay); or (iv) any obligations it has under the express terms of a written ERISA-qualified benefit plan (e.g., 401(k) account) or the express terms of any vested stock option or
restricted stock awards[; or (v) the Company’s obligations to pay you severance benefits as set forth in Section              of your offer letter/employment agreement
dated             ]. I hereby represent that I have no lawsuits, claims or actions pending in my name, or on behalf of any other person or entity, against the Company or any other
person or entity subject to the release granted in this paragraph. 

 For Employees Under Age 40 
 Individual and Group Termination 
 I acknowledge that I have read and understand Section 1542 of the
California Civil Code which reads as follows: “A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have
materially affected his settlement with the debtor.” I hereby expressly waive and relinquish all rights and benefits under Section 1542 and any law of any jurisdiction of similar effect with respect to my release of any
claims hereunder, including but not limited to unknown and unsuspected claims. 
 I hereby represent that I have been paid all compensation
owed and for all hours worked, I have received all the leave and leave benefits and protections for which I am eligible pursuant to the Family and Medical Leave Act, the California Family Rights Act, or otherwise, and I have not suffered any
on-the-job injury for which I have not already filed a workers’ compensation claim. 
 I acknowledge that to become effective, I must
sign and return this Release to the Company so that it is received not later than fourteen (14) days following the date it is provided to me. 
  

			
	EMPLOYEE
		
	Name:	 	  

	Date:	 	  

 RACKABLE SYSTEMS, INC. 
 EXECUTIVE CHANGE IN CONTROL SEVERANCE BENEFIT PLAN 
 PARTICIPATION NOTICE 
  

					
	To:	 	  
	 	
			
	Date:	 	  
	 	

 Rackable Systems, Inc. (the “Company”) has adopted the Rackable Systems,
Inc. Executive Change in Control Severance Benefit Plan (the “Plan”). The Company is providing you with this Participation Notice to inform you that you qualify as a participant in the Plan. A copy of the Plan document is
attached to this Participation Notice. [Except as provided below, the] [The] terms and conditions of your participation in the Plan are as set forth in the Plan, and in the event of any conflict between this Participation Notice and the Plan, the
terms of the Plan shall prevail. 
 Your Benefit Percentage is
[            ].1 
 Your Participation Termination Date is [June 8,
2007][                        ] 
 Written severance and/or change in control benefit provisions of any offer letter, employment agreement, equity incentive plan (or an associated award agreement) or other contract between the Company or any Subsidiary
and Participant superseded by the Plan and this Notice in the event that the undersigned receives or becomes entitled to receive any payment under the Plan: 
  

			
	  
	 	

 Please retain a copy of this Participation Notice, along with the Plan document, for your records.

  

			
	RACKABLE SYSTEMS, INC.
		
	By:	 	  

	Its:	 	  

	1	If the benefit percentages of the participant’s in the Rackable Systems, Inc. Executive Change in Control Benefit Plan are reduced, by agreement or otherwise,
then your Benefit Percentage will be proportionally reduced by the same proportional amount as the reduction in the benefit percentage of the participant in Rackable Systems, Inc. Executive Change in Control Benefit Plan whose benefit percentage is
the least amount proportionally reduced. 

 ACKNOWLEDGEMENT [AND AGREEMENT] 
 The undersigned hereby acknowledges receipt of the foregoing Participation Notice. The undersigned acknowledges that the undersigned has been advised to obtain tax and financial advice regarding the consequences of
participating in the Plan, including the effect, if any, of Sections 409A and 4999 of the Internal Revenue Code. [Further, the undersigned acknowledges and agrees that (1) if the undersigned receives or becomes entitled to receive any payment
under the Plan, the undersigned waives, with respect to any written severance and/or change in control benefit provisions of any offer letter, employment agreement, equity incentive plan (or an associated award agreement) or other contract between
the Company or any Subsidiary and Participant superseded by the Plan and this Notice, as set forth above, any rights to receive such severance and/or change in control benefits and (2) that this waiver is a material condition to the undersigned
becoming a Participant in the Plan, and that the Company has relied on this waiver in causing the undersigned to become a Participant in the Plan.] 
  

	
	  

	  
  

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