Document:

Settlement Agreement

 EXHIBIT 10.29 
  
 SETTLEMENT AGREEMENT 
  
 This Settlement Agreement (this “Agreement”) is entered into as of April 1, 2005 (the “Effective Date”) by and between James Dean
(“Dean”) and Extreme Ease Software, Inc. (“EES”), formerly known as Network Simplicity Software, Inc., a British Columbia company and Forgent Networks, Inc., a Delaware corporation (“Forgent”), and Forgent Networks
Canada, Inc., a Yukon company (“Forgent Canada”), Network Simplicity Software, Inc., a Delaware corporation (“NetSimplicity”). 
  
 Recitals 
  
 WHEREAS, Dean, EES, Forget and NetSimplicity are parties to an Asset Purchase Agreement. In addition, Dean and NetSimplicity are parties to
a Confidentiality and Invention Disclosure Agreement, Dean and Forgent Canada are parties to a Confidentiality and Invention Disclosure Agreement, and Dean and Forgent, NetSimplicity and Forgent Canada are parties to a Noncompetition and
Nonsolicitation Agreement. The Confidentiality and Invention Disclosure Agreements and the Nonsolicitation Agreement shall be referred to herein as the “Prior Agreements”; 
  
 WHEREAS, Forgent and NetSimplicity commenced an arbitration case against Dean and EES with the American Arbitration
Association, styled In the Matter of the Arbitration between Forgent Networks, Inc. and Network Simplicity Software, Inc., a Delaware corporation, and James Dean and Extreme Ease Software, Inc., f/n/a Network Simplicity, Inc., a British Columbia
company asserting claims of breach of contract and breach of fiduciary duty; and 
  
 WHEREAS, all the parties desire to settle their disputes, and avoid the time and expense of litigation related thereto: 
  
 NOW THEREFORE, in consideration of the foregoing and the mutual covenants and agreements herein contained, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto, intending to be legally bound, agree as follows: 
  
 Agreement 
  
 1.
Release of Dean and EES. Forgent, Forgent Canada and NetSimplicity each hereby, for themselves and their predecessors, successors and assigns, and all others claiming by or through either of them, voluntarily and knowingly, unconditionally
and fully release and forever discharge Dean and EES, and any successors, predecessors-in-interest, officers, directors, employees, attorneys, agents and representatives thereof, from any and all claims, demands, causes of action, obligations,
damages and liabilities whatsoever, including claims for exemplary damages, whether legal or equitable, whether known or unknown, disclosed or undisclosed, suspected or unsuspected, which Forgent, Forgent Canada and NetSimplicity ever had, now have,
or may ever have against Dean and EES related to, resulting from, or arising out of, any act, transaction, or occurrence between the parties occurring prior to the date of this Agreement, including, without limitation, each and every claim for any
type of relief or remedy whatsoever based upon any theory whatsoever, whether known or unknown at this time, and specifically, including, without limitation, claims or causes of action relating to or arising from the parties’ prior business
dealings, whether such claims are grounded in common law, contract, statute or tort, except as expressly provided herein. 

 2. Termination of Prior Agreements. In addition to the foregoing release, Forgent, Forgent Canada
and NetSimplicity agree to terminate the Prior Agreements and release Dean and EES of any and all future obligations that Dean and/or EES may have had pursuant to the Prior Agreements except for the obligations relating to confidentiality and
nondisclosure of proprietary and confidential information relating to Forgent, Forgent Canada and NetSimplicity. 
  
 3. Release of Forgent, Forgent Canada and NetSimplicity. Dean and EES each hereby, for themselves and their predecessors, successors, and assigns,
and all others claiming by or through either of them, voluntarily and knowingly, unconditionally and fully release and forever discharge Forgent, Forgent Canada and NetSimplicity, and any representatives thereof, from any and all claims, demands,
causes of action, obligations, damages, and liabilities whatsoever, including claims for exemplary damages, whether legal or equitable, whether known or unknown, disclosed or undisclosed, suspected or unsuspected, which Dean and EES ever had, now
had, or may ever have against Forgent, Forgent Canada and NetSimplicity relating to, resulting from, or arising out of, any act, transaction, or occurrence between the parties occurring prior to the date of this Agreement, including, without
limitation, and each and every claim for any type of relief or remedy whatsoever based upon any theory whatsoever, whether known or unknown at this time, and specifically, including, without limitation, all claims arising out of or related to the
Asset Purchase Agreement, the Earn-Out provisions therein, and all claims to the Escrow Collateral held by Wells Fargo Bank, N.A. under the Escrow Agreement entered into between the parties, and all claims or causes of action relating to or arising
from the parties’ prior business dealings, whether such claims are grounded in common law, contract, statute or tort, except as expressly provided herein. 
  

4. Termination of Escrow Agreement. In addition to the foregoing releases, the parties hereto agree that this Agreement shall serve as joint
instructions to the Escrow Agent, Wells Fargo Bank, N.A., formerly known as Wells Fargo Bank Texas, a banking corporation, to terminate the Escrow Agreement entered into in connection with the Asset Purchase Agreement dated October 6, 2003 (the
“Asset Purchase Agreement”) and to release the Escrow Collateral to Forgent within five (5) business days of the receipt of this Agreement. 
  
 5. Transfer of Title to Intellectual Property. Dean and EES hereby agree that execution of this Agreement shall be effective to transfer to
Forgent, Forgent Canada and NetSimplicity any and all ownership rights Dean and EES may have to the web-based reporting tool named “Reports & Forms”, the web-based reporting tool named “Extreme Web Reports” and the web-based
CRM application named “Sell and Support” (the “Software”) along with all related tools, scripts, specifications, documentation and other materials. 
  
 6. Delivery of Software and Deliverables. Dean and EES acknowledge that upon execution of this Agreement by all the
parties, Forgent, Forgent Canada and NetSimplicity will be the owners of the Software and the related tools, scripts, specifications, and documentation associated therewith. EES and Dean agree to deliver to Forgent, Forgent Canada and NetSimplicity
within ten (10) days of the execution of this Agreement the source code and object code relating to the Software and all build tools, packaging tools, and other tools together with 

  

 2 

 
all related scripts, specifications, and documentations, including engineering notes, design and architecture notes, test documentation, requirement
documentation, performance documentation, test scripts, third-party libraries, user documentation in source format, and in output formats, translations, tools for user documentation generation, pre-built executables, such as object code, and
finished user documentation, and all other data, media, drawings and materials related to the Software (the “Deliverables”). At the time of the delivery of the Software and Deliverables to Forgent, Dean and EES shall represent and warrant
in writing that they have fully complied with this provision and have delivered all Software and Deliverables to Forgent. 
  
 7. Current Deliverables. Dean and EES represent and warrant that the source code and object code relating to the Software and all build tools,
packaging tools, and other tools delivered by Dean and EES to Forgent, Forgent Canada and NetSimplicity shall be the current and most recent versions created by Dean and EES. 
  
 8. No Admission. The parties hereto agree that neither the consideration described above nor anything herein
contained shall be deemed to be an admission of liability by or to the parties hereto. 
  
 9. Dismissal of Arbitration. Within five (5) business days after the execution of this Agreement and the License Agreement, Forgent will undertake the necessary steps to effect the dismissal of the Arbitration.

  
 10. No Assignment of Claims. Each of the parties hereto
represents and warrants that he/it has not assigned or transferred, or purported to assign or transfer, to any person, firm, partnership, corporation or entity whatsoever, any rights, claims, demands, damages, liabilities, attorneys’ fees,
costs, expenses, actions and causes of action released, compromised and settled in this Agreement. Each Party represents and warrants that he/it is the party which has all of the interest in any of the released, compromised and settled matters
referenced in Sections 1 through 4 of this Agreement. 
  
 11.
Entire Agreement. This Agreement contains the entire agreement and understanding among the parties pertaining to the subject of this Agreement and there are no representations, warranties or commitments except as provided therein. This
Agreement supersedes and replaces all prior and contemporaneous negotiations, agreements and proposed agreements, written or oral, relating to the intellectual property rights in and to the Software and Deliverables. This Agreement may be modified
only by a writing signed by each of the parties. 
  
 12. Mutual
Drafting. This Agreement represents a bargained for agreement resulting from the negotiation of the parties. This Agreement shall be deemed as joint work product of all parties and their respective counsel, and all parties shall be considered
the drafters of this Agreement. Any rule of construction to the effect that any ambiguities are to be construed against the drafting party shall not be applicable to this Agreement. By their authorized signatures below, the parties certify that they
have carefully read and fully considered the terms of this Agreement, that they have had an opportunity to discuss these terms with attorneys or advisors of their own choosing, that they agree to all of the terms of this Agreement, that they intend
to be bound by them and to fulfill the promises set forth herein, and that they voluntarily and knowingly enter into this Agreement with full understanding of its binding legal consequences. 
  

 3 

 13. Assignment. None of the rights or obligations of any party under this Agreement may be
assigned by such Party without the prior written consent of the other party hereto. 
  
 14. Execution in Counterparts. This Agreement may be executed by facsimile in any number of counterparts, each of which shall be an original, but all of which together shall be deemed to constitute one
instrument. 
  
 15. No Third Party Beneficiaries. This
Agreement is written solely to set forth the respective rights and obligations of the parties hereto with respect to the subject matter hereof and is not intended to create or convey any rights whatsoever with respect to any third party. 

 
 16. Binding on Successors. This Agreement shall inure to the
benefit of and be binding on each of the parties hereto and on their successors, heirs and permitted assigns. 
  
 17. Fees and Expenses. Except as otherwise provided herein, all costs and expenses (including, without limitation, attorneys’ fees and
expenses, independent auditors’ fees and expenses, taxes, or interest) incurred in connection with this Agreement and the Arbitration shall be paid by the party incurring such expense. 
  
 18. Assumption of Risk. Each of the parties hereto acknowledges that
no other party, nor any agent or attorney of any party, has made any promise, representation or warranty whatsoever, expressed or implied, not expressly contained in this Agreement concerning the settlement described herein, to induce that party to
execute and deliver this Agreement and acknowledges that that party has not executed or delivered this Agreement in reliance upon such promise, representation or warranty not contained herein. 
  
 19. Authority to Sign Agreement. Each party hereto represents and
warrants to the other that (i) they are represented by counsel in entering into this Agreement; (ii) the signators to this Agreement have full legal right, title, and authority to execute this Agreement on behalf of the individuals and entities they
represent; (iii) this Agreement and any other agreement or instrument entered into in connection herewith, when executed and delivered, will be valid and enforceable obligations of such party, enforceable in accordance with their terms; and (iv)
entering into this Agreement any other agreement or instrument entered into in connection herewith and performance hereunder and thereunder does not and will not violate any agreement existing between such party and any third party. 
  
 20. Governing Law. This Agreement shall be governed in all respects by
the laws of the State of Texas. 
  
 21. Headings. The
descriptive headings that are used in this Agreement are for convenience only and shall not affect the meaning of any provision in the Agreement. 
  
 22. Severability. If any provision of this Agreement is prohibited by law, such provision shall not affect the validity of the remaining provisions
of this Agreement. 
  

 4 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the day and year
first above written. 
  

			
	  
 /S/ JAMES
DEAN

	JAMES DEAN
	
	EXTREME EASE SOFTWARE, INC.
		
	By:	 	 /S/ JAMES DEAN

	Name:	 	 James Dean

	Title:	 	 President

	
	FORGENT NETWORKS, INC.
		
	By:	 	 /S/ PAUL TESLUK

	Name:	 	 Paul Tesluk

	Title:	 	 Assistant Treasurer

	
	FORGENT NETWORKS CANADA, INC.
		
	By:	 	 /S/ PAUL TESLUK

	Name:	 	 Paul Tesluk

	Title:	 	 Secretary

	
	NETWORK SIMPLICITY SOFTWARE, INC.,
	a Delaware corporation
		
	By:	 	 /S/ PAUL TESLUK

	Name:	 	 Paul Tesluk

	Title:	 	 Assistant Secretary

  

 5 

 SUBSCRIBED AND SWORN TO before me, the undersigned authority, by James Dean on this the
27th day of April, 2005. 
  

			
	 	 	 /S/ JASON S. TWA

	 	 	Notary Public
	 	 	  
 Jason S. Twa

	 	 	Typed or Printed Name of Notary
	 	 	 
	 	 	 

  
 SUBSCRIBED AND
SWORN TO before me, the undersigned authority, by Dean, James of Extreme Ease Software, Inc. on this the 27th day of April, 2005. 
  

			
	 	 	 /S/ JASON S. TWA

	 	 	Notary Public
	 	 	  
 Jason S. Twa

	 	 	Typed or Printed Name of Notary
	 	 	 
	 	 	 

  
 SUBSCRIBED AND
SWORN TO before me, the undersigned authority, by Paul, Teswk of Forgent Networks, Inc. on this the 28th day of April, 2005. 
  

			
	 	 	 /S/ ALEXA C. COY

	 	 	Notary Public
	 	 	  
 Alexa C. Coy

	 	 	Typed or Printed Name of Notary
	My Commission Expires:	 	 
	  
 10/22/08

	 	 

  

 6 

 SUBSCRIBED AND SWORN TO before me, the undersigned authority, by Tesluk, Paul of
Forgent Networks Canada, Inc. on this the 28th day of April, 2005. 
  

			
	 	 	  
 /s/    ALEXA C.
COY        

	 	 	Notary Public
	 	 	  
 ALEXA C.
COY

	 	 	Typed or Printed Name of Notary
	My Commission Expires:	 	 
	  
 10/22/08

	 	 

  
 SUBSCRIBED AND
SWORN TO before me, the undersigned authority, by Tesluk, Paul of Network Simplicity Software, Inc. on this the 28th day of April, 2005. 

			
	 	 	  
 /s/    ALEXA C.
COY        

	 	 	Notary Public
	 	 	  
 ALEXA C.
COY

	 	 	Typed or Printed Name of Notary
	My Commission Expires:	 	 
	  
  
 10/22/08

	 	 

  

 7EX-10.1

Exhibit 10.1

NETWORK APPLIANCE, INC.

AUTOMATIC STOCK OPTION AGREEMENT

RECITALS

A. The Corporation has implemented an automatic option grant program under the Plan pursuant
to which eligible non-employee members of the Board will automatically receive special option
grants at periodic intervals over their period of Board service in order to provide such
individuals with a meaningful incentive to continue to serve as members of the Board.

B. Optionee is an eligible non-employee Board member, and this Agreement is executed pursuant
to, and is intended to carry out the purposes of, the Plan in connection with the automatic grant
of an option to purchase shares of Common Stock under the Plan.

C. All capitalized terms in this Agreement shall have the meaning assigned to them in the
attached Appendix.

NOW, THEREFORE, it is hereby agreed as follows:

1. Grant of Option. The Corporation hereby grants to Optionee, as of the Grant Date,
a Non-Statutory Option to purchase up to the number of Option Shares specified in the Grant Notice.
The Option Shares shall be purchasable from time to time during the option term specified in
Paragraph 2 at the Exercise Price.

2. Option Term. This option shall have a term of ten (10) years measured from the
Grant Date and shall accordingly expire at the close of business on the Expiration Date, unless
sooner terminated in accordance with Paragraph 5, 6 or 7.

3. Limited Transferability.

(a) This option may be assigned in whole or in part during Optionee’s lifetime to one or more
members of Optionee’s family or to a trust established for the exclusive benefit of one or more
such family members, to the extent such assignment is in connection with the Optionee’s estate
plan, or to Optionee’s former spouse pursuant to a domestic relations order. The assigned portion
shall be exercisable only by the person or persons who acquire a proprietary interest in the option
pursuant to such assignment. The terms applicable to the assigned portion shall be the same as
those in effect for this option immediately prior to such assignment.

(b) Should Optionee die while holding this option, then this option shall be transferred in
accordance with Optionee’s will or the laws of inheritance. However, Optionee may designate one or
more persons as the beneficiary or beneficiaries of this option, and this option shall, in
accordance with such designation, automatically be transferred to such beneficiary or beneficiaries
upon Optionee’s death while holding this option. Such beneficiary or beneficiaries shall take the
transferred option subject to all the terms and conditions of this Agreement, including (without
limitation) the limited time period during which this option may, pursuant to Paragraph 5, be
exercised following Optionee’s death.

4. Exercisability/Vesting.

(a) This option shall be immediately exercisable for any or all of the Option Shares, whether
or not the Option Shares are at the time vested in accordance with the Vesting Schedule, and shall
remain so exercisable until the Expiration Date or sooner termination of the option term under
Paragraph 5, 6 or 7.

(b) Optionee shall, in accordance with the Vesting Schedule set forth in the Grant Notice,
vest in the Option Shares in one or more installments over his or her period of Board service.
Vesting in the Option Shares may be accelerated pursuant to the provisions of Paragraph 5, 6 or 7.
In no event, however, shall any additional Option Shares vest following Optionee’s cessation of
service as a Board member.

5. Cessation of Board Service. Should Optionee’s service as a Board member cease
while this option remains outstanding, then the option term specified in Paragraph 2 shall
terminate (and this option shall cease to be outstanding) prior to the Expiration Date in
accordance with the following provisions:

(a) Should Optionee cease to serve as a Board member for any reason (other than death or
Permanent Disability) while this option is outstanding, then the period during which this option
may be exercised shall be reduced to a twelve (12)-month period measured from the date of such
cessation of Board service, but in no event shall this option be exercisable at any time after the
Expiration Date. During such limited period of exercisability, this option may not be exercised in
the aggregate for more than the number of Option Shares (if any) in which Optionee is vested on the
date of his or her cessation of Board service. Upon the earlier of (i) the expiration of
such twelve (12)-month period or (ii) the specified Expiration Date, the option shall terminate and
cease to be exercisable with respect to any vested Option Shares for which the option has not been
exercised.

(b) Should Optionee die during the twelve (12)-month period following his or her cessation of
Board service and hold this option at the time of his or her death, then the personal
representative of Optionee’s estate or the person or persons to whom the option is transferred
pursuant to Optionee’s will or the laws of inheritance or the designated beneficiary or
beneficiaries of this option (as the case may be) shall have the right to exercise this option for
any or all of the Option Shares in which Optionee is vested at the time of Optionee’s cessation of
Board service (less any Option Shares purchased by Optionee after such cessation of Board service
but prior to death). Any such right to exercise this option shall terminate, and this option shall
accordingly cease to be exercisable for such vested Option Shares, upon the earlier of (i)
the expiration of the twelve (12)-month period measured from the date of Optionee’s cessation of
Board service or (ii) the specified Expiration Date.

(c) Should Optionee cease service as a Board member by reason of death or Permanent
Disability, then any Option Shares at the time subject to this option but not otherwise vested
shall vest in full so that this option may be exercised for any or all of the Option Shares as
fully vested shares of Common Stock at any time prior to the earlier of (i) the expiration
of the twelve (12)-month period measured from the date of Optionee’s cessation of Board service or
(ii) the specified Expiration Date, whereupon this option shall terminate and cease to be
outstanding.

(d) Upon Optionee’s cessation of Board service for any reason other than death or Permanent
Disability, this option shall immediately terminate and cease to be outstanding with respect to any
and all Option Shares in which Optionee is not otherwise at that time vested in accordance with the
normal Vesting Schedule or the special vesting acceleration provisions of Paragraphs 6 and 7 below.

6. Corporate Transaction.

(a) In the event of a Corporate Transaction effected during Optionee’s period of Board
service, any Option Shares at the time subject to this option but not otherwise vested shall
automatically vest so that this option shall, immediately prior to the specified effective date for
that Corporate Transaction, become exercisable for all of the Option Shares as fully vested shares
of Common Stock and may be exercised for any or all of those vested shares. Immediately following
the consummation of the Corporate Transaction, this option shall terminate and cease to be
outstanding, except to the extent assumed by the successor corporation or its parent company.

(b) If this option is assumed in connection with a Corporate Transaction, then this option
shall be appropriately adjusted, immediately after such Corporate Transaction, to apply to the
number and class of securities which would have been issuable to Optionee in consummation of such
Corporate Transaction had the option been exercised immediately prior to such Corporate
Transaction, and appropriate adjustments shall also be made to the Exercise Price, provided
the aggregate Exercise Price shall remain the same.

7. Change in Control. In the event of a Change in Control effected during Optionee’s
period of Board service, any Option Shares at the time subject to this option but not otherwise
vested shall automatically vest so that this option shall, immediately prior to the effective date
of that Change in Control, become exercisable for all of the Option Shares as fully vested shares
of Common Stock and may be exercised for any or all of those vested shares. This option shall
remain exercisable for such fully vested Option Shares until the earliest to occur of (i)
the specified Expiration Date or (ii) the sooner termination of this option in accordance with
Paragraph 5 or 6.

8. Adjustment in Option Shares. Should any change be made to the Common Stock by
reason of any stock split, stock dividend, recapitalization, combination of shares, exchange of
shares or other change affecting the outstanding Common Stock as a class without the Corporation’s
receipt of consideration, appropriate adjustments shall be made to (i) the total number and/or
class of securities subject to this option and (ii) the Exercise Price in order to reflect such
change and thereby preclude a dilution or enlargement of benefits hereunder.

9. Shareholder Rights. The holder of this option shall not have any shareholder
rights with respect to the Option Shares until such person shall have exercised the option, paid
the Exercise Price and become a holder of record of the purchased shares.

10. Manner of Exercising Option.

(a) In order to exercise this option with respect to all or any part of the Option Shares for
which this option is at the time exercisable, Optionee (or any other person or persons exercising
the option) must take the following actions:

(i) To the extent the option is exercised for vested Option Shares, execute
and deliver to the Corporation a Notice of Exercise for the Option Shares for which the
option is exercised. To the extent this option is exercised for unvested Option Shares,
execute and deliver to the Corporation a Purchase Agreement for those unvested Option
Shares.

(ii) Pay the aggregate Exercise Price for the purchased shares in one or more
of the following forms:

(A) cash or check made payable to the Corporation,

(B) shares of Common Stock held by Optionee (or any other person or
persons exercising the option) for the requisite period necessary to avoid a
charge to the Corporation’s earnings for financial reporting purposes and
valued at Fair Market Value on the Exercise Date, or

(C) to the extent the option is exercised for vested Option Shares,
through a special sale and remittance procedure pursuant to which Optionee
(or any other person or persons exercising the option) shall concurrently
provide irrevocable instructions (I) to a Corporation-designated brokerage
firm to effect the immediate sale of the purchased shares and remit to the
Corporation, out of the sale proceeds available on the settlement date,
sufficient funds to cover the aggregate Exercise Price payable for the
purchased shares plus all applicable Federal, state and local income and
employment taxes required to be withheld by the Corporation by reason of such
exercise and (II) to the Corporation to deliver the certificates for the
purchased shares directly to such brokerage firm in order to complete the
sale.

(iii) Furnish to the Corporation appropriate documentation that the person or
persons exercising the option (if other than Optionee) have the right to exercise this
option.

(b) Except to the extent the sale and remittance procedure is utilized in connection with the
option exercise, payment of the Exercise Price must accompany the Notice of Exercise (or the
Purchase Agreement) delivered to the Corporation in connection with the option exercise.

(c) As soon after the Exercise Date as practical, the Corporation shall issue to or on behalf
of Optionee (or any other person or persons exercising this option) a certificate for the purchased
Option Shares, with the appropriate legends affixed thereto. To the extent any such Option Shares
are unvested, the certificates for those Option Shares shall be endorsed with an appropriate legend
evidencing the Corporation’s repurchase rights and may be held in escrow with the Corporation until
such shares vest.

(d) In no event may this option be exercised for any fractional shares.

11. No Impairment of Rights. This Agreement shall not in any way affect the right of
the Corporation to adjust, reclassify, reorganize or otherwise make changes in its capital or
business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any
part of its business or assets. In addition, this Agreement shall not in any way be construed or
interpreted so as to affect adversely or otherwise impair the right of the Corporation or the
shareholders to remove Optionee from the Board at any time in accordance with the provisions of
applicable law.

12. Compliance with Laws and Regulations.

(a) The exercise of this option and the issuance of the Option Shares upon such exercise shall
be subject to compliance by the Corporation and Optionee with all applicable requirements of law
relating thereto and with all applicable regulations of any stock exchange (or the Nasdaq National
Market, if applicable) on which the Common Stock may be listed for trading at the time of such
exercise and issuance.

(b) The inability of the Corporation to obtain approval from any regulatory body having
authority deemed by the Corporation to be necessary to the lawful issuance and sale of any Common
Stock pursuant to this option shall relieve the Corporation of any liability with respect to the
non-issuance or sale of the Common Stock as to which such approval shall not have been obtained.
The Corporation, however, shall use its best efforts to obtain all such approvals.

13. Successors and Assigns. Except to the extent otherwise provided in Paragraph 3 or
6, the provisions of this Agreement shall inure to the benefit of, and be binding upon, the
Corporation and its successors and assigns and Optionee, Optionee’s assigns, the legal
representatives, heirs and legatees of Optionee’s estate and any beneficiaries of this option
designated by Optionee.

14. Notices. Any notice required to be given or delivered to the Corporation under
the terms of this Agreement shall be in writing and addressed to the Corporation at its principal
corporate offices. Any notice required to be given or delivered to Optionee shall be in writing
and addressed to Optionee at the address indicated below Optionee’s signature line on the Grant
Notice. All notices shall be deemed effective upon personal delivery or upon deposit in the U.S.
mail, postage prepaid and properly addressed to the party to be notified.

15. Construction. This Agreement and the option evidenced hereby are made and granted
pursuant to the Plan and are in all respects limited by and subject to the terms of the Plan.

16. Governing Law. The interpretation, performance and enforcement of this Agreement
shall be governed by the laws of the State of California without resort to that State’s
conflict-of-laws rules.

1

EXHIBIT I

NOTICE OF EXERCISE

I hereby notify Network Appliance, Inc. (the “Corporation”) that I elect to purchase
     shares of the Corporation’s Common Stock (the “Purchased Shares”) at the option
exercise price of $  per share (the “Exercise Price”) pursuant to that
certain option (the “Option”) granted to me under the Corporation’s 1999 Stock Option Plan on
     ,      .

Concurrently with the delivery of this Exercise Notice to the Corporation, I shall hereby pay
to the Corporation the Exercise Price for the Purchased Shares in accordance with the provisions of
my agreement with the Corporation (or other documents) evidencing the Option and shall deliver
whatever additional documents may be required by such agreement as a condition for exercise.
Alternatively, I may utilize the special broker-dealer sale and remittance procedure specified in
my agreement to effect payment of the Exercise Price for any Purchased Shares in which I am vested
at the time of exercise of the Option.

	 	 	 	 	 
	_________________________, ________
	 	 	 	 
	Date
	 	 	 	 
	 
	 	 	—	 
	   Optionee

	 
	 	 	—	 
	   Address: _____________________________

	 
	 	 	—	 
	Print name in exact manner
it is to appear on the
stock certificate:
	 	 	—	 
	Address to which certificate
is to be sent, if different
from address above:
	 	 	—	 
	 
	 	 	—	 
	Social Security Number:
	 	 	—	 
	 
	 	 	—	 

2

APPENDIX

The following definitions shall be in effect under the Agreement:

A. Agreement shall mean this Automatic Stock Option Agreement.

B. Board shall mean the Corporation’s Board of Directors.

C. Change in Control shall mean a change in ownership or control of the Corporation
effected through either of the following transactions:

(i) the acquisition, directly or indirectly, by any person or related group
of persons (other than the Corporation or a person that directly or indirectly controls, is
controlled by, or is under common control with, the Corporation) of beneficial ownership
(within the meaning of Rule 13d-3 of the 1934 Act) of securities possessing more than fifty
percent (50%) of the total combined voting power of the Corporation’s outstanding securities
pursuant to a tender or exchange offer made directly to the Corporation’s shareholders, or

(ii) a change in the composition of the Board over a period of thirty-six
(36) consecutive months or less such that a majority of the Board members ceases, by reason
of one or more contested elections for Board membership, to be comprised of individuals who
either (A) have been Board members continuously since the beginning of such period or (B)
have been elected or nominated for election as Board members during such period by at least
a majority of the Board members described in clause (A) who were still in office at the time
the Board approved such election or nomination.

D. Common Stock shall mean shares of the Corporation’s common stock.

E. Code shall mean the Internal Revenue Code of 1986, as amended.

F. Corporate Transaction shall mean either of the following shareholder-approved
transactions to which the Corporation is a party:

(i) a merger or consolidation in which securities possessing more than fifty
percent (50%) of the total combined voting power of the Corporation’s outstanding securities
are transferred to a person or persons different from the persons holding those securities
immediately prior to such transaction, or

(ii) the sale, transfer or other disposition of all or substantially all of
the Corporation’s assets in complete liquidation or dissolution of the Corporation.

G. Corporation shall mean Network Appliance, Inc., a California corporation, and any
successor corporation to all or substantially all of the assets or voting stock of Network
Appliance, Inc. which shall by appropriate action adopt the Plan.

H. Exercise Date shall mean the date on which the option shall have been exercised in
accordance with Paragraph 10 of the Agreement.

I. Exercise Price shall mean the exercise price per share as specified in the Grant
Notice.

J. Expiration Date shall mean the date on which the option expires as specified in the
Grant Notice.

K. Fair Market Value per share of Common Stock on any relevant date shall be
determined in accordance with the following provisions:

(i) If the Common Stock is at the time traded on the Nasdaq National Market,
then the Fair Market Value shall be the closing selling price per share of Common Stock on
the date in question, as the price is reported by the National Association of Securities
Dealers on the Nasdaq National Market and published in The Wall Street Journal. If
there is no closing selling price for the Common Stock on the date in question, then the
Fair Market Value shall be the closing selling price on the last preceding date for which
such quotation exists.

(ii) If the Common Stock is at the time listed on any Stock Exchange, then
the Fair Market Value shall be the closing selling price per share of Common Stock on the
date in question on the Stock Exchange which serves as the primary market for the Common
Stock, as such price is officially quoted in the composite tape of transactions on such
exchange and published in The Wall Street Journal. If there is no closing selling
price for the Common Stock on the date in question, then the Fair Market Value shall be the
closing selling price on the last preceding date for which such quotation exists.

L. Grant Date shall mean the date of grant of the option as specified in the Grant
Notice.

M. Grant Notice shall mean the Notice of Grant of Automatic Stock Option accompanying
the Agreement, pursuant to which Optionee has been informed of the basic terms of the option
evidenced hereby.

N. 1934 Act shall mean the Securities Exchange Act of 1934, as amended.

O. Non-Statutory Option shall mean an option not intended to satisfy the requirements
of Code Section 422.

P. Notice of Exercise shall mean the notice of exercise in the form of Exhibit I.

Q. Option Shares shall mean the number of shares of Common Stock subject to the
option.

R. Optionee shall mean the person to whom the option is granted as specified in the
Grant Notice.

S. Permanent Disability shall mean the inability of Optionee to perform his or her
usual duties as a member of the Board by reason of any medically determinable physical or mental
impairment which is expected to result in death or has lasted or can be expected to last for a
continuous period of twelve (12) months or more.

T. Plan shall mean the Corporation’s 1999 Stock Option Plan.

U. Purchase Agreement shall mean the stock purchase agreement (in form and substance
satisfactory to the Corporation) which grants the Corporation the right to repurchase, at the
Exercise Price, any and all unvested Option Shares held by Optionee at the time of Optionee’s
cessation of Board service and which precludes the sale, transfer or other disposition of any
purchased Option Shares while those shares are unvested and subject to such repurchase right.

V. Stock Exchange shall mean the American Stock Exchange or the New York Stock
Exchange.

W. Vesting Schedule shall mean the vesting schedule specified in the Grant Notice,
pursuant to which the Option Shares will vest in one or more installments over the Optionee’s
period of Board service, subject to acceleration in accordance with the provisions of the
Agreement.

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00084-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00084-of-00352.parquet"}]]