Document:

exv10w26

Exhibit 10.26

Cardica, Inc.

Restricted Stock Unit Grant Notice

2005 Equity Incentive Plan

Cardica, Inc. (the “Company”), pursuant to its 2005 Equity Incentive Plan, as amended to date (the
“Plan”), hereby awards to Participant a Restricted Stock Unit Award for the number of shares of the
Company’s Common Stock set forth below (the “Award”). The Award is subject to all of the terms and
conditions as set forth herein and in the Plan and the Restricted Stock Unit Agreement (the
“Agreement”), both of which are attached hereto and incorporated herein in their entirety.
Capitalized terms not otherwise defined herein shall have the meanings set forth in the Plan or the
Restricted Stock Unit Agreement, as applicable. In the event of any conflict between the terms in
the Award and the Plan, the terms of the Plan shall control.

	 	 	 	 	 
	Participant:

	 	 

	 	     
	Date of Grant:

	 	 

	 	     
	Vesting Commencement Date:

	 	 

	 	     
	Number of Shares Subject to Award:

	 	 

	 	     

			
	Vesting Schedule:	 	50% of the shares subject to the Award vest on the first (1st)
anniversary of the Vesting Commencement Date, and the remaining shares subject to the Award
vest on the second (2nd) anniversary of the Vesting Commencement Date.
Notwithstanding the foregoing, vesting will cease upon the Participant’s termination of
Continuous Service.

			
	Issuance Schedule:	 	The shares will be issued in accordance with the issuance schedule set forth in
Section 6 of the Agreement.

Additional Terms/Acknowledgements: The undersigned Participant acknowledges receipt of, and
understands and agrees to, this Restricted Stock Unit Grant Notice, the Agreement and the Plan.
Participant further acknowledges that as of the Date of Grant (specified above), this Restricted
Stock Unit Grant Notice, the Agreement and the Plan set forth the entire understanding between
Participant and the Company regarding the acquisition of stock in the Company and supersede all
prior oral and written agreements on that subject with the exception of (i) awards previously
granted and delivered to Participant by the Company, and (ii) the following agreements only:

	 	 	 	 	 
	 

	 	Other Agreements:
	 	  

	 

	 	 	 	  

	 	 	 
	Cardica, Inc.
	 
	 	 
	By:
	 	 
	 

	 	 
	 

	 	Signature
	 
	 	 
	Title:
	 	 
	 

	 	 
	 
	 	 
	Date:
	 	 
	 

	 	 

	 	 	 
	Participant:
	 
	 	 
	 
	 	 
	 
	 

	 	Signature
	 
	 	 
	Date:
	 	 
	 

	 	 

Attachments: Restricted Stock Unit Agreement, 2005 Equity Incentive Plan

1

 

Attachment I

Cardica, Inc.

2005 Equity Incentive Plan

Restricted Stock Unit Agreement

     Pursuant to the Restricted Stock Unit Grant Notice (“Grant Notice”) and this Restricted Stock
Unit Agreement (the “Agreement”), Cardica, Inc. (the “Company”) has awarded you a Restricted Stock
Unit Award (the “Award”) under its 2005 Equity Incentive Plan, as amended to date (the “Plan”).
Your Award is granted to you effective as of the Date of Grant set forth in the Grant Notice for
this Award. This Agreement shall be deemed to be agreed to by the Company and you upon the signing
by you of the Grant Notice to which it is attached. Defined terms not explicitly defined in this
Agreement shall have the same meanings given to them in the Plan. In the event of any conflict
between the terms in this Agreement and the Plan, the terms of the Plan shall control. The details
of your Award, in addition to those set forth in the Grant Notice and the Plan, are as follows.

     1. Grant of the Award. This Award represents the right to be issued on a future date
the number of shares of the Company’s Common Stock as indicated in the Grant Notice. As of the
Date of Grant, the Company will credit to a bookkeeping account maintained by the Company for your
benefit (the “Account”) the number of shares of Common Stock subject to the Award. Except as
otherwise provided herein, you will not be required to make any payment to the Company (other than
past and future services to the Company or an Affiliate) with respect to your receipt of the Award,
the vesting of the shares or the delivery of the underlying Common Stock.

     2. Vesting. Subject to the limitations contained herein, your Award will vest, if at
all, in accordance with the vesting schedule set forth in the Grant Notice, provided that vesting
will cease upon the termination of your Continuous Service. Upon such termination of your
Continuous Service, the shares credited to the Account that were not vested on the date of such
termination will be forfeited at no cost to the Company and you will have no further right, title
or interest in or to such underlying shares of Common Stock.

     3. Number of Shares.

          (a) The number of shares subject to your Award may be adjusted from time to time for
Capitalization Adjustments, as provided in the Plan.

          (b) Any shares, cash or other property that becomes subject to the Award pursuant to this
Section 3, if any, shall be subject, in a manner determined by the Board, to the same forfeiture
restrictions, restrictions on transferability, and time and manner of delivery as applicable to the
other shares covered by your Award.

          (c) Notwithstanding the provisions of this Section 3, no fractional shares or rights for
fractional shares of Common Stock shall be created pursuant to this Section 3. The Board shall, in
its discretion, determine an equivalent benefit for any fractional shares or fractional shares that
might be created by the adjustments referred to in this Section 3.

     4. Securities Law Compliance. You will not be issued any shares under your Award
unless either (a) the shares are registered under the Securities Act; or (b) the Company has
determined that such issuance would be exempt from the registration requirements of the Securities
Act. Your Award also must comply with other applicable laws and regulations governing the Award,
and you will not receive such shares if the Company determines that such receipt would not be in
material compliance with such laws and regulations.

     5. Limitations on Transfer. Your Award is not transferable, except by will or by the
laws of descent and distribution. In addition to any other limitation on transfer created by
applicable securities laws, you agree not to assign, hypothecate, donate, encumber or otherwise
dispose of any interest in any of the shares of Common Stock subject to the Award until the shares
are issued to you in accordance with Section 6 of this

 

 

Agreement. After the shares have been issued to you, you are free to assign, hypothecate,
donate, encumber or otherwise dispose of any interest in such shares provided that any such actions
are in compliance with the provisions herein and applicable securities laws. Notwithstanding the
foregoing, by delivering written notice to the Company, in a form satisfactory to the Company, you
may designate a third party who, in the event of your death, shall thereafter be entitled to
receive any distribution of Common Stock to which you were entitled at the time of your death
pursuant to this Agreement.

     6. Date of Issuance. 

          (a) Subject to Section 10, if applicable, the Company will deliver to you a number of shares
of the Company’s Common Stock equal to the number of vested shares subject to your Award, including
any additional shares received pursuant to Section 3 above that relate to those vested shares, on
the applicable vesting date(s). However, if a scheduled delivery date falls on a date that is not
a business day, such delivery date shall instead fall on the next following business day.

          (b) Notwithstanding the foregoing, in the event that you are subject to the Company’s policy
permitting employees, contractors or consultants to sell shares only during certain “window”
periods, in effect from time to time or you are otherwise prohibited from selling shares of the
Company’s Common Stock in the public market and any shares covered by your Award are scheduled to
be delivered on a day (the “Original Distribution Date”) that does not occur during an open “window
period” applicable to you, as determined by the Company in accordance with such policy, or does not
occur on a date when you are otherwise permitted to sell shares of the Company’s Common Stock on
the open market, and the Company elects (i) not to satisfy its tax withholding obligations by
withholding shares from your distribution, or (ii) not to permit you to enter into a “same day
sale” commitment with a broker-dealer pursuant to Section 10(a)(iii) of this Agreement (including
but not limited to a commitment under a previously established Company-approved 10b5-1 plan), then
such shares shall not be delivered on such Original Distribution Date and shall instead be
delivered on the first business day of the next occurring open “window period” applicable to you
pursuant to such policy (regardless of whether you are still providing Continuous Services at such
time) or the next business day when you are not prohibited from selling shares of the Company’s
Common Stock in the open market, but in no event later than the fifteenth (15th) day of the third
calendar month of the calendar year following the calendar year in which the Original Distribution
Date occurs. The form of such delivery (e.g., a stock certificate or electronic entry evidencing
such shares) shall be determined by the Company. In all cases, the delivery of shares under this
Award is intended to comply with U.S. Treasury Regulation Section 1.409A-1(b)(4) and shall be
construed and administered in such a manner.

     7. Dividends. You shall receive no benefit or adjustment to your Award with respect
to any cash dividend, stock dividend or other distribution that does not result from a
Capitalization Adjustment; provided, however, that this sentence shall not apply with respect to
any shares of Common Stock that are delivered to you in connection with your Award after such
shares have been delivered to you.

     8. Restrictive Legends. The shares issued under your Award shall be endorsed with
appropriate legends if determined by the Company that legends are required under applicable law or
otherwise.

     9. Award Not a Service Contract.

          (a) Your Continuous Service with the Company or an Affiliate is not for any specified term and
may be terminated by you or by the Company or an Affiliate at any time, for any reason, with or
without cause and with or without notice. Nothing in this Agreement (including, but not limited
to, the vesting of your Award pursuant to the schedule set forth in Section 2 herein or the
issuance of the shares subject to your Award), the Plan or any covenant of good faith and fair
dealing that may be found implicit in this Agreement or the Plan shall: (i) confer upon you any
right to continue in the employ of, or affiliation with, the Company or an Affiliate; (ii)
constitute any promise or commitment by the Company or an Affiliate regarding the fact or nature of
future positions, future work assignments, future compensation or any other term or condition of
employment or affiliation; (iii) confer any right or benefit under this Agreement or the Plan
unless such right or benefit has specifically accrued under the terms of this Agreement or Plan; or
(iv) deprive the Company or an Affiliate of the right to terminate you at will and without regard
to any future vesting opportunity that you may have.

 

 

          (b) By accepting this Award, you acknowledge and agree that the right to continue vesting in
the Award pursuant to the schedule set forth in Section 2 is earned only by continuing as an
Employee, Director or Consultant at the will of the Company or an Affiliate (not through the act of
being hired, being granted this Award or any other award or benefit) and that the Company has the
right to reorganize, sell, spin-out or otherwise restructure one or more of its businesses or
Affiliates at any time or from time to time, as it deems appropriate (a “reorganization”). You
further acknowledge and agree that such a reorganization could result in the termination of your
Continuous Service, or the termination of Affiliate status of your employer and the loss of
benefits available to you under this Agreement, including but not limited to, the termination of
the right to continue vesting in the Award. You further acknowledge and agree that this Agreement,
the Plan, the transactions contemplated hereunder and the vesting schedule set forth herein or any
covenant of good faith and fair dealing that may be found implicit in any of them do not constitute
an express or implied promise of continued engagement as an Employee, Director or Consultant for
the term of this Agreement, for any period, or at all, and shall not interfere in any way with your
right or the Company’s or an Affiliate’s right to terminate your Continuous Service at any time,
with or without cause and with or without notice.

     10. Withholding Obligations.

          (a) On or before the time you receive a distribution of the shares subject to your Award, or
at any time thereafter as requested by the Company, you hereby authorize any required withholding
from the Common Stock issuable to you and/or otherwise agree to make adequate provision in cash for
any sums required to satisfy the federal, state, local and foreign tax withholding obligations of
the Company or any Affiliate which arise in connection with your Award (the “Withholding Taxes”).
Additionally, the Company or an Affiliate, or their respective agents, may, in their sole
discretion, satisfy all or any portion of the Withholding Taxes obligation relating to your Award
by any of the following means or by a combination of such means: (i) withholding from any
compensation otherwise payable to you by the Company; (ii) causing you to tender a cash payment;
(iii) permitting you to enter into a “same day sale” commitment with a broker-dealer that is a
member of the Financial Industry Regulatory Authority (a “FINRA Dealer”) whereby you irrevocably
elect to sell a portion of the shares to be delivered under the Award to satisfy the Withholding
Taxes and whereby the FINRA Dealer irrevocably commits to forward the proceeds necessary to satisfy
the Withholding Taxes directly to the Company and/or its Affiliates, including a commitment
pursuant to a previously established Company-approved 10b5-1 plan, or (iv) withholding shares of
Common Stock from the shares of Common Stock issued or otherwise issuable to you in connection with
the Award with a Fair Market Value (measured as of the date shares of Common Stock are issued to
pursuant to Section 6) equal to the amount of such Withholding Taxes; provided, however, that the
number of such shares of Common Stock so withheld shall not exceed the amount necessary to satisfy
the Company’s required tax withholding obligations using the minimum statutory withholding rates
for federal, state, local and foreign tax purposes, including payroll taxes, that are applicable to
supplemental taxable income.

          (b) Unless the tax withholding obligations of the Company and/or any Affiliate are satisfied,
the Company shall have no obligation to deliver to you any Common Stock.

          (c) In the event the Company’s and/or an Affiliate’s obligation to withhold arises prior to
the delivery to you of Common Stock or it is determined after the delivery of Common Stock to you
that the amount of the Company’s and/or an Affiliate’s withholding obligation was greater than the
amount withheld by the Company and/or an Affiliate, you agree to indemnify and hold the Company
and/or the Affiliate harmless from any failure by the Company and/or an Affiliate to withhold the
proper amount.

     11. Unsecured Obligation. Your Award is unfunded, and as a holder of a vested Award,
you shall be considered an unsecured creditor of the Company with respect to the Company’s
obligation, if any, to issue shares pursuant to this Agreement. You shall not have voting or any
other rights as a stockholder of the Company with respect to the shares to be issued pursuant to
this Agreement until such shares are issued to you pursuant to Section 6 of this Agreement. Upon
such issuance, you will obtain full voting and other rights as a stockholder of the Company.
Nothing contained in this Agreement, and no action taken pursuant to its provisions, shall create
or be construed to create a trust of any kind or a fiduciary relationship between you and the
Company or any other person.

     12. Other Documents. You hereby acknowledge receipt of, or the right to receive a
document providing the information required by, Rule 428(b)(1) promulgated under the Securities
Act, which includes the

 

 

Plan prospectus. In addition, you acknowledge receipt of the Company’s policy permitting
certain individuals to sell shares only during certain “window” periods and the Company’s insider
trading policy, in effect from time to time.

     13. Notices. Any notices provided for in your Award or the Plan shall be given in
writing and shall be deemed effectively given upon receipt or, in the case of notices delivered by
the Company to you, five (5) days after deposit in the United States mail, postage prepaid,
addressed to you at the last address you provided to the Company or one (1) business day after
deposit with a nationally-recognized overnight courier specifying next day delivery.
Notwithstanding the foregoing, the Company may, in its sole discretion, decide to deliver any
documents related to participation in the Plan and this Award by electronic means or to request
your consent to participate in the Plan by electronic means. You hereby consent to receive such
documents by electronic delivery and, if requested, to agree to participate in the Plan through an
on-line or electronic system established and maintained by the Company or another third party
designated by the Company.

     14. Miscellaneous.

          (a) The rights and obligations of the Company under your Award shall be transferable to any
one or more persons or entities, and all covenants and agreements hereunder shall inure to the
benefit of, and be enforceable by the Company’s successors and assigns. Your rights and obligations
under your Award may only be assigned with the prior written consent of the Company.

          (b) You agree upon request to execute any further documents or instruments necessary or
desirable in the sole determination of the Company to carry out the purposes or intent of your
Award.

          (c) You acknowledge and agree that you have reviewed your Award in its entirety, have had an
opportunity to obtain the advice of counsel prior to executing and accepting your Award, and fully
understand all provisions of your Award.

          (d) This Agreement shall be subject to all applicable laws, rules, and regulations, and to
such approvals by any governmental agencies or national securities exchanges as may be required.

          (e) All obligations of the Company under the Plan and this Agreement shall be binding on any
successor to the Company, whether the existence of such successor is the result of a direct or
indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business
and/or assets of the Company.

     15. Governing Plan Document. Your Award is subject to all the provisions of the
Plan, the provisions of which are hereby made a part of your Award, and is further subject to all
interpretations, amendments, rules and regulations which may from time to time be promulgated and
adopted pursuant to the Plan. Except as expressly provided herein, in the event of any conflict
between the provisions of your Award and those of the Plan, the provisions of the Plan shall
control.

     16. Severability. If all or any part of this Agreement or the Plan is declared by
any court or governmental authority to be unlawful or invalid, such unlawfulness or invalidity
shall not invalidate any portion of this Agreement or the Plan not declared to be unlawful or
invalid. Any Section of this Agreement (or part of such a Section) so declared to be unlawful or
invalid shall, if possible, be construed in a manner which will give effect to the terms of such
Section or part of a Section to the fullest extent possible while remaining lawful and valid.

     17. Effect on Other Employee Benefit Plans. The value of the Award subject to this
Agreement shall not be included as compensation, earnings, salaries, or other similar terms used
when calculating your benefits under any employee benefit plan sponsored by the Company or any
Affiliate, except as such plan otherwise expressly provides. The Company expressly reserves its
rights to amend, modify, or terminate any of the Company’s or any Affiliate’s employee benefit
plans.

     18. Choice of Law. The interpretation, performance and enforcement of this Agreement
will be governed by the law of the state of Delaware without regard to such state’s conflicts of
laws rules.

 

 

     19. Amendment. This Agreement may not be modified, amended or terminated except by
an instrument in writing, signed by you and by a duly authorized representative of the Company.
Notwithstanding the foregoing, this Agreement may be amended solely by the Board by a writing which
specifically states that it is amending this Agreement, so long as a copy of such amendment is
delivered to you, and provided that no such amendment adversely affecting your rights hereunder may
be made without your written consent. Without limiting the foregoing, the Board reserves the right
to change, by written notice to you, the provisions of this Agreement in any way it may deem
necessary or advisable to carry out the purpose of the grant as a result of any change in
applicable laws or regulations or any future law, regulation, ruling, or judicial decision,
provided that any such change shall be applicable only to rights relating to that portion of the
Award which is then subject to restrictions as provided herein.

     20. Compliance with Section 409A of the Code. This Award is intended to comply with
the “short-term deferral” rule set forth in U.S. Treasury Regulation Section 1.409A-1(b)(4).
Notwithstanding the foregoing, if it is determined that the Award fails to satisfy the requirements
of the short-term deferral rule and is otherwise deferred compensation subject to Section 409A, and
if you are a “Specified Employee” (within the meaning set forth in Section 409A(a)(2)(B)(i) of the
Code) as of the date of your separation from service (within the meaning of U.S. Treasury
Regulation Section 1.409A-1(h)), then the issuance of any shares that would otherwise be made upon
the date of the separation from service or within the first six (6) months thereafter will not be
made on the originally scheduled date(s) and will instead be issued in a lump sum on the date that
is six (6) months and one day after the date of the separation from service, with the balance of
the shares issued thereafter in accordance with the original vesting and issuance schedule set
forth above, but if and only if such delay in the issuance of the shares is necessary to avoid the
imposition of taxation on you in respect of the shares under Section 409A of the Code. Each
installment of shares that vests is intended to constitute a “separate payment” for purposes of
U.S. Treasury Regulation Section 1.409A-2(b)(2).exv10w1

Exhibit 10.1

ARUBA NETWORKS, INC.

EMPLOYEE STOCK PURCHASE PLAN

(Amended and restated February 13, 2009)

     1. Purpose. The purpose of the Plan is to provide employees of the Company and its
Designated Subsidiaries with an opportunity to purchase Common Stock of the Company through
accumulated payroll deductions. It is the intention of the Company to have the Plan qualify as an
“Employee Stock Purchase Plan” under Section 423 of the Code. The provisions of the Plan,
accordingly, shall be construed so as to extend and limit participation in a uniform and
nondiscriminatory basis consistent with the requirements of Section 423 of the Code.

     2. Definitions.

          (a) “Administrator” shall mean the Board or any Committee designated by the Board to
administer the plan pursuant to Section 14.

          (b) “Board” shall mean the Board of Directors of the Company.

          (c) “Change in Control” means the occurrence of any of the following events:

               (i) Any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) other
than a Permitted Transferee (as defined in the Company’s Amended and Restated Certificate of
Incorporation) becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act),
directly or indirectly, of securities of the Company representing fifty percent (50%) or more of
the total voting power represented by the Company’s then outstanding voting securities; or

               (ii) The consummation of the sale or disposition by the Company of all or substantially all of
the Company’s assets; or

               (iii) A change in the composition of the Board occurring within a two-year period, as a result
of which fewer than a majority of the directors are Incumbent Directors. “Incumbent Directors”
means directors who either (A) are Directors as of the effective date of the Plan, or (B) are
elected, or nominated for election, to the Board with the affirmative votes of at least a majority
of the Directors at the time of such election or nomination (but will not include an individual
whose election or nomination is in connection with an actual or threatened proxy contest relating
to the election of directors to the Company); or

               (iv) The consummation of a merger or consolidation of the Company with any other corporation,
other than a merger or consolidation which would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by remaining outstanding or
by being converted into voting securities of the surviving entity or its parent) at least fifty
percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger
or consolidation.

 

 

          (d) “Code” shall mean the Internal Revenue Code of 1986, as amended. Any reference to
a section of the Code herein will be a reference to any successor or amended section of the Code.

          (e) “Committee” means a committee of the Board appointed by the Board in accordance
with Section 14 hereof.

          (f) “Common Stock” shall mean the Common Stock of the Company.

          (g) “Company” shall mean Aruba Networks, Inc., a Delaware corporation.

          (h) “Compensation” shall mean all base straight time gross earnings, commissions,
overtime and shift premium, incentive compensation, and bonuses, but exclusive of other
compensation.

          (i) “Designated Subsidiary” shall mean any Subsidiary selected by the Administrator as
eligible to participate in the Plan.

          (j) “Director” shall mean a member of the Board.

          (k) “Eligible Employee” shall mean any individual who is a common law employee of the
Company or any Designated Subsidiary and whose customary employment with the Company or Designated
Subsidiary is at least fifteen (15) hours per week and more than five (5) months in any calendar
year. For purposes of the Plan, the employment relationship shall be treated as continuing intact
while the individual is on sick leave or other leave of absence approved by the Company. Where the
period of leave exceeds 90 days and the individual’s right to reemployment is not guaranteed either
by statute or by contract, the employment relationship shall be deemed to have terminated on the
91st day of such leave.

          (l) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended,
including the rules and regulations promulgated thereunder.

          (m) “Exercise Date” shall mean the first Trading Day on or after September 1 and March
1 of each year. The first Exercise Date under the Plan will be the first Trading Day on or after
September 1, 2007.

          (n) “Fair Market Value” shall mean, as of any date and unless the Administrator
determines otherwise, the value of Common Stock determined as follows:

               (i) If the Common Stock is listed on any established stock exchange or a national market
system, including without limitation the Nasdaq Global Market, the Nasdaq Global Select Market or
the Nasdaq Capital Market of The Nasdaq Stock Market, its Fair Market Value shall be the closing
sales price for such stock (or the closing bid, if no sales were reported) as quoted on such
exchange or system on the date of determination, as reported in The Wall Street Journal or such
other source as the Administrator deems reliable;

-2-

 

               (ii) If the Common Stock is regularly quoted by a recognized securities dealer but selling
prices are not reported, its Fair Market Value shall be the mean of the closing bid and asked
prices for the Common Stock on the date of determination, as reported in The Wall Street Journal or
such other source as the Administrator deems reliable; or

               (iii) In the absence of an established market for the Common Stock, the Fair Market Value
thereof shall be determined in good faith by the Board; or

               (iv) For purposes of the Offering Date of the first Offering Period under the Plan, the Fair
Market Value will be the initial price to the public as set forth in the final prospectus included
within the registration statement on Form S-1 filed with the Securities and Exchange Commission for
the initial public offering of the Common Stock (the “Registration Statement”).

          (o) “Offering Date” shall mean the first Trading Day of each Offering Period.

          (p) “Offering Periods” shall mean the periods of approximately twenty-four (24) months
during which an option granted pursuant to the Plan may be exercised, commencing on the first
Trading Day on or after March 1 and September 1 of each year and terminating on the first Trading
Day on or after the subsequent Offering Period commencement date approximately twenty-four (24)
months later; provided, however, that the first Offering Period under the Plan shall commence with
the first Trading Day on or after the date on which the Securities and Exchange Commission declares
the Company’s Registration Statement on Form S-1 effective and end on the earlier of (i) the first
trading day on or after March 1, 2009 or (ii) twenty-seven (27) months from the beginning of the
first Offering Period; and provided, further, that the second Offering Period under the Plan will
commence on the first Trading Day on or after September 1, 2007. The duration and timing of
Offering Periods may be changed pursuant to Section 4 of this Plan.

          (q) “Plan” shall mean this Employee Stock Purchase Plan.

          (r) “Purchase Period” shall mean the period during an Offering Period which shares of
Common Stock may be purchased on a participant’s behalf in accordance with the terms of the Plan.
Unless and until the Administrator provides otherwise, the Purchase Period shall mean the
approximately six (6) month period commencing on one Exercise Date and ending with the next
Exercise Date, except that the first Purchase Period of any Offering Period will commence on the
first day of the Offering Period and end with the next Exercise Date; provided, however, that the
first Purchase Period of the first Offering Period will commence on the first day of such Offering
Period and end on the first Trading Day on or after September 1, 2007.

          (s) “Purchase Price” shall mean an amount equal to eighty-five percent (85%) of the
Fair Market Value of a share of Common Stock on the Offering Date or on the Exercise Date,
whichever is lower; provided however, that the Purchase Price may be adjusted by the Administrator
pursuant to Section 20.

          (t) “Subsidiary” shall mean a “subsidiary corporation,” whether now or hereafter
existing, as defined in Section 424(f) of the Code.

-3-

 

          (u) “Trading Day” shall mean a day on which the U.S. national stock exchange upon
which the Company Common Stock is listed is open for trading.

     3. Eligibility.

          (a) First Offering Period. Any individual who is an Eligible Employee immediately
prior to the first Offering Period shall be automatically enrolled in the first Offering Period.

          (b) Subsequent Offering Periods. Any Eligible Employee on a given Offering Date
subsequent to the First Offering Period shall be eligible to participate in the Plan.

          (c) Limitations. Any provisions of the Plan to the contrary notwithstanding, no
Eligible Employee shall be granted an option under the Plan (i) to the extent that, immediately
after the grant, such Eligible Employee (or any other person whose stock would be attributed to
such Eligible Employee pursuant to Section 424(d) of the Code) would own capital stock of the
Company or any Subsidiary and/or hold outstanding options to purchase such stock possessing five
percent (5%) or more of the total combined voting power or value of all classes of the capital
stock of the Company or of any Subsidiary, or (ii) to the extent that his or her rights to purchase
stock under all employee stock purchase plans of the Company and its Subsidiaries accrues at a rate
which exceeds Twenty-Five Thousand Dollars ($25,000) worth of stock (determined at the fair market
value of the shares at the time such option is granted) for each calendar year in which such option
is outstanding at any time.

     4. Offering Periods. The Plan shall be implemented by consecutive, overlapping
Offering Periods with a new Offering Period commencing on the first Trading Day on or after March 1
and September 1 of each year, or on such other date as the Administrator shall determine; provided,
however, that the first Offering Period under the Plan shall commence with the first Trading Day on
or after the date on which the Securities and Exchange Commission declares the Company’s
Registration Statement on Form S-1 effective and end on the earlier of (i) the first trading day on
or after March 1, 2009 or (ii) twenty-seven (27) months from the beginning of the first Offering
Period; and provided, further that the second Offering Period under the Plan will commence on the
first Trading Day on or after September 1, 2007. The Administrator shall have the power to change
the duration of Purchase Periods and/or Offering Periods (including the commencement dates thereof)
with respect to future purchase periods or offerings without stockholder approval if such change is
announced prior to the scheduled beginning of the first Purchase Period or Offering Period, as
applicable, to be affected thereafter.

     5. Participation.

          (a) First Offering Period. An Eligible Employee shall be entitled to continue to
participate in the first Offering Period pursuant to Section 3(a) only if such individual submits a
subscription agreement authorizing payroll deductions in a form determined by the Administrator
(which may be similar to the form attached hereto as Exhibit A) to the Company’s designated
plan administrator (i) no earlier than the effective date of the Form S-8 registration statement
with respect to the issuance of Common Stock under this Plan and (ii) no later than ten (10)
business days following the effective date of such S-8 registration statement (the “Enrollment
Window”). An Eligible Employee’s failure to submit the subscription agreement during the Enrollment Window
shall result in the automatic termination of such individual’s participation in the Offering
Period.

-4-

 

          (b) Subsequent Offering Periods. An Eligible Employee may become a participant in the
Plan by completing a subscription agreement in a form and in the timeframe determined by the
Administrator (which may be similar to the form attached hereto as Exhibit A) and filing it
with the Company’s designated Plan administrator prior to the applicable Offering Date (and within
the timeframe determined the Administrator).

     6. Payroll Deductions.

          (a) At the time a participant files his or her subscription agreement, he or she shall elect
to have payroll deductions made on each pay day during the Offering Period in an amount not
exceeding fifteen percent (15%) of the Compensation which he or she receives on each pay day during
the Offering Period. Unless the Administrator determines otherwise, should a pay day occur on an
Exercise Date for a Purchase Period, a participant shall have the payroll deductions made on such
day applied to his or her account under such Purchase Period. A participant’s subscription
agreement shall remain in effect for successive Offering Periods unless terminated as provided in
Section 10 hereof.

          (b) Payroll deductions for a participant shall commence on the first pay day following the
Offering Date and shall end on the last pay day in the Offering Period to which such authorization
is applicable, unless sooner terminated by the participant as provided in Section 10 hereof;
provided, however, that for the first Offering Period, payroll deductions shall commence on the
first pay day on or following the end of the Enrollment Window.

          (c) All payroll deductions made for a participant shall be credited to his or her account
under the Plan and shall be withheld in whole percentages only. A participant may not make any
additional payments into such account.

          (d) A participant may discontinue his or her participation in the Plan as provided in Section
10 hereof, or may increase or decrease the rate of his or her payroll deductions during the
Offering Period by completing or filing with the Company a new subscription agreement authorizing a
change in payroll deduction rate. The Administrator may, in its discretion, limit the nature
and/or number of participation rate changes during any Purchase Period or Offering Period. The
change in rate shall be effective with the first full payroll period following five (5) business
days after the Company’s receipt of the new subscription agreement unless the Company elects to
process a given change in participation more quickly.

          (e) Notwithstanding the foregoing, to the extent necessary to comply with Section 423(b)(8) of
the Code and Section 3(c) hereof, a participant’s payroll deductions may be decreased to zero
percent (0%) at any time during a Purchase Period. Payroll deductions shall recommence at the rate
provided in such participant’s subscription agreement at the beginning of the first Purchase Period
which is scheduled to end in the following calendar year, unless terminated by the participant as
provided in Section 10 hereof.

-5-

 

          (f) At the time the option is exercised, in whole or in part, or at the time some or all of
the Company’s Common Stock issued under the Plan is disposed of, the participant must make adequate provision for the Company’s or its Subsidiary’s federal, state, or any other tax
liability payable to any authority, national insurance, social security or other tax withholding
obligations, if any, which arise upon the exercise of the option or the disposition of the Common
Stock including, for the avoidance of doubt, any liability to pay secondary Class 1 National
Insurance Contributions for which an agreement or election has been entered into under paragraph 3A
or 3B of Schedule 1 to the Social Security Contributions and Benefits act 1992. At any time, the
Company or its Subsidiary may, but shall not be obligated to, withhold from the participant’s
compensation the amount necessary for the Company or its Subsidiary to meet applicable withholding
obligations, including any withholding required to make available to the Company or its Subsidiary
any tax deductions or benefits attributable to sale or early disposition of Common Stock by the
Eligible Employee.

     7. Grant of Option. On the Offering Date of each Offering Period, each Eligible
Employee participating in such Offering Period shall be granted an option to purchase on each
Exercise Date during such Offering Period (at the applicable Purchase Price) up to a number of
shares of the Company’s Common Stock determined by dividing such Eligible Employee’s payroll
deductions accumulated prior to such Exercise Date by the applicable Purchase Price; provided that
in no event shall an Eligible Employee be permitted to purchase during each Purchase Period more
than 3,000 shares of the Company’s Common Stock (subject to any adjustment pursuant to Section 19),
and provided further that such purchase shall be subject to the limitations set forth in Sections
3(c) and 13 hereof. The Eligible Employee may accept the grant of such option by turning in a
completed Subscription Agreement (attached hereto as Exhibit A) to the Company on or prior
to an Offering Date, or with respect to the first Offering Period, prior to the last day of the
Enrollment Window. The Administrator may, for future Offering Periods, increase or decrease, in
its absolute discretion, the maximum number of shares of the Company’s Common Stock an Eligible
Employee may purchase during each Purchase Period of an Offering Period. Exercise of the option
shall occur as provided in Section 8 hereof, unless the participant has withdrawn pursuant to
Section 10 hereof. The option shall expire on the last day of the Offering Period.

     8. Exercise of Option.

          (a) Unless a participant withdraws from the Plan as provided in Section 10 hereof, his or her
option for the purchase of shares shall be exercised automatically on the Exercise Date, and the
maximum number of full shares subject to such option shall be purchased for such participant at the
applicable Purchase Price with the accumulated payroll deductions in his or her account.  No
fractional shares shall be purchased; any payroll deductions accumulated in a participant’s account
which are not sufficient to purchase a full share shall be retained in the participant’s account
for the subsequent Purchase Period or Offering Period, subject to earlier withdrawal by the
participant as provided in Section 10.   Any other funds left over in a participant’s account after
the Exercise Date will be returned to the participant.  During a participant’s lifetime, a
participant’s option to purchase shares hereunder is exercisable only by him or her

          (b) If the Administrator determines that, on a given Exercise Date, the number of shares of
Common Stock with respect to which options are to be exercised may exceed (i) the number of shares
of Common Stock that were available for sale under the Plan on the Offering Date of the applicable
Offering Period, or (ii) the number of shares available for sale under the Plan on such Exercise
Date, the Administrator may in its sole discretion provide that the Company shall make a pro rata
allocation of the shares of Common Stock available for purchase on such Offering

-6-

 

Date or Exercise Date, as applicable, in as uniform a manner as shall be practicable and as it
shall determine in its sole discretion to be equitable among all participants exercising options to
purchase Common Stock on such Exercise Date, and continue all Offering Periods then in effect or
terminate all Offering Periods then in effect pursuant to Section 20. The Company may make a pro
rata allocation of the shares available on the Offering Date of any applicable Offering Period
pursuant to the preceding sentence, notwithstanding any authorization of additional shares for
issuance under the Plan by the Company’s stockholders subsequent to such Offering Date.

     9. Delivery. As soon as reasonably practicable after each Exercise Date on which a
purchase of shares of Common Stock occurs, the Company shall arrange the delivery to each
participant the shares purchased upon exercise of his or her option in a form determined by the
Administrator and pursuant to rules established by the Administrator. No participant will have any
voting, dividend, or other stockholder rights with respect to shares of Common Stock subject to any
option granted under the Plan until such shares have been purchased and delivered to the
participant as provided in this Section 9.

     10. Withdrawal.

          (a) Under procedures established by the Administrator, a participant may withdraw all but not
less than all the payroll deductions credited to his or her account and not yet used to exercise
his or her option under the Plan at any time by giving written notice to the Company in the form
and manner and within the timeframe determined by the Administrator (which may be similar to the
form attached as Exhibit B to this Plan). All of the participant’s payroll deductions
credited to his or her account shall be paid to such participant promptly after receipt of notice
of withdrawal and such participant’s option for the Offering Period shall be automatically
terminated, and no further payroll deductions for the purchase of shares shall be made for such
Offering Period. If a participant withdraws from an Offering Period, payroll deductions shall not
resume at the beginning of the succeeding Offering Period unless the participant delivers to the
Company a new subscription agreement.

          (b) A participant’s withdrawal from an Offering Period shall not have any effect upon his or
her eligibility to participate in any similar plan which may hereafter be adopted by the Company or
in succeeding Offering Periods which commence after the termination of the Offering Period from
which the participant withdraws.

     11. Termination of Employment. Upon a participant’s ceasing to be an Eligible
Employee, for any reason, he or she shall be deemed to have elected to withdraw from the Plan and
the payroll deductions credited to such participant’s account during the Offering Period but not
yet used to purchase shares of Common Stock under the Plan shall be returned to such participant
or, in the case of his or her death, to the person or persons entitled thereto under Section 15,
and such participant’s option shall be automatically terminated.

     12. Interest. No interest shall accrue on the payroll deductions of a participant in
the Plan.

-7-

 

     13. Stock.

          (a) Subject to adjustment upon changes in capitalization of the Company as provided in Section
19 hereof, the maximum aggregate number of Shares that may issued under the Plan is one million
(1,000,000) Shares plus an annual increase to be added on the first day of the Company’s fiscal
year beginning with the Company’s 2008 fiscal year, equal to the lesser of (A) six million
(6,000,000) Shares, or (B) two percent (2%) of the outstanding Shares on the last day of the
immediately preceding Company fiscal year. The Shares may be authorized, but unissued, or
reacquired Common Stock.

          (b) Until the shares are issued (as evidenced by the appropriate entry on the books of the
Company or of a duly authorized transfer agent of the Company), a participant shall only have the
rights of an unsecured creditor with respect to such shares, and no right to vote or receive
dividends or any other rights as a stockholder shall exist with respect to such shares.

          (c) Shares to be delivered to a participant under the Plan shall be registered in the name of
the participant or in the name of the participant and his or her spouse.

     14. Administration. The Administrator shall administer the Plan and shall have full
and exclusive discretionary authority to construe, interpret and apply the terms of the Plan, to
determine eligibility and to adjudicate all disputed claims filed under the Plan. Every finding,
decision and determination made by the Administrator shall, to the full extent permitted by law, be
final and binding upon all parties. Notwithstanding any provision to the contrary in this Plan,
the Administrator may adopt rules or procedures relating to the operation and administration of the
Plan to accommodate the specific requirements of local laws and procedures for jurisdictions
outside of the United States. Without limiting the generality of the foregoing, the Administrator
is specifically authorized to adopt rules and procedures regarding eligibility to participate, the
definition of Compensation, handling of payroll deductions, making of contributions to the Plan
(including, without limitation, in forms other than payroll deductions), establishment of bank or
trust accounts to hold payroll deductions, payment of interest, conversion of local currency,
obligations to pay payroll tax, determination of beneficiary designation requirements, withholding
procedures and handling of stock certificates which vary with local requirements.

     15. Designation of Beneficiary.

          (a) A participant may file a designation of a beneficiary who is to receive any shares of
Common Stock and cash, if any, from the participant’s account under the Plan in the event of such
participant’s death subsequent to an Exercise Date on which the option is exercised but prior to
delivery to such participant of such shares and cash. In addition, a participant may file a
designation of a beneficiary who is to receive any cash from the participant’s account under the
Plan in the event of such participant’s death prior to exercise of the option. If a participant is
married and the designated beneficiary is not the spouse, spousal consent shall be required for
such designation to be effective.

          (b) Such designation of beneficiary may be changed by the participant at any time by notice in
a form determined by the Administrator. In the event of the death of a participant and in the
absence of a beneficiary validly designated under the Plan who is living at the time of such

-8-

 

participant’s death, the Company shall deliver such shares and/or cash to the executor or
administrator of the estate of the participant, or if no such executor or administrator has been
appointed (to the knowledge of the Company), the Company, in its discretion, may deliver such
shares and/or cash to the spouse or to any one or more dependents or relatives of the participant,
or if no spouse, dependent or relative is known to the Company, then to such other person as the
Company may designate.

          (c) All beneficiary designations shall be in such form and manner as the Administrator may
designate from time to time.

     16. Transferability. Neither payroll deductions credited to a participant’s account
nor any rights with regard to the exercise of an option or to receive shares under the Plan may be
assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of
descent and distribution or as provided in Section 15 hereof) by the participant. Any such attempt
at assignment, transfer, pledge or other disposition shall be without effect, except that the
Company may treat such act as an election to withdraw funds from an Offering Period in accordance
with Section 10 hereof.

     17. Use of Funds. All payroll deductions received or held by the Company under the
Plan may be used by the Company for any corporate purpose, and the Company shall not be obligated
to segregate such payroll deductions. Until shares of Common Stock are issued, participants shall
only have the rights of an unsecured creditor.

     18. Reports. Individual accounts shall be maintained for each participant in the
Plan. Statements of account shall be given to participating Eligible Employees at least annually,
which statements shall set forth the amounts of payroll deductions, the Purchase Price, the number
of shares purchased and the remaining cash balance, if any.

     19. 

Adjustments Upon Changes in Capitalization, Dissolution, Liquidation,
Merger or Change in Control.

          (a) Changes in Capitalization. Subject to any required action by the stockholders of
the Company, the maximum number of shares of the Company’s Common Stock which shall be made
available for sale under the Plan, the maximum number of shares each participant may purchase each
Purchase Period (pursuant to Section 7), as well as the price per share and the number of shares of
Common Stock covered by each option under the Plan which has not yet been exercised shall be
proportionately adjusted for any increase or decrease in the number of issued shares of Common
Stock resulting from a stock split, reverse stock split, stock dividend, combination or
reclassification of the Common Stock, or any other change in the number of shares of Common Stock
effected without receipt of consideration by the Company; provided, however, that conversion of any
convertible securities of the Company shall not be deemed to have been “effected without receipt of
consideration.” Such adjustment shall be made by the Administrator, whose determination in that
respect shall be final, binding and conclusive. Except as expressly provided herein, no issuance
by the Company of shares of stock of any class, or securities convertible into shares of stock of
any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the
number or price of shares of Common Stock subject to an option.

-9-

 

          (b) Dissolution or Liquidation. In the event of the proposed dissolution or
liquidation of the Company, the Offering Period then in progress shall be shortened by setting a
new Exercise Date (the “New Exercise Date”), and shall terminate immediately prior to the
consummation of such proposed dissolution or liquidation, unless provided otherwise by the
Administrator. The New Exercise Date shall be before the date of the Company’s proposed
dissolution or liquidation. The Administrator shall notify each participant in writing, at least
ten (10) business days prior to the New Exercise Date, that the Exercise Date for the participant’s
option has been changed to the New Exercise Date and that the participant’s option shall be
exercised automatically on the New Exercise Date, unless prior to such date the participant has
withdrawn from the Offering Period as provided in Section 10 hereof.

          (c) Merger or Change in Control. In the event of a merger or Change in Control, each
outstanding option shall be assumed or an equivalent option substituted by the successor
corporation or a Parent or Subsidiary of the successor corporation. In the event that the
successor corporation refuses to assume or substitute for the option, the Offering Period with
respect to which such option relates shall be shortened by setting a New Exercise Date and shall
end on the New Exercise Date. The New Exercise Date shall be before the date of the Company’s
proposed merger or Change in Control. The Administrator shall notify each participant in writing
prior to the New Exercise Date, that the Exercise Date for the participant’s option has been
changed to the New Exercise Date and that the participant’s option shall be exercised automatically
on the New Exercise Date, unless prior to such date the participant has withdrawn from the Offering
Period as provided in Section 10 hereof.

     20. Amendment or Termination.

          (a) The Administrator may at any time and for any reason terminate, suspend or amend the Plan
or any part thereof, at any time and for any reason. Except as provided in Section 19 and this
Section 20 hereof, no amendment may make any change in any option theretofore granted which
adversely affects the rights of any participant unless their consent is obtained. To the extent
necessary to comply with Section 423 of the Code (or any successor rule or provision or any other
applicable law, regulation or stock exchange rule), the Company shall obtain stockholder approval
of any amendment in such a manner and to such a degree as required.

          (b) Without stockholder approval and without regard to whether any participant rights may be
considered to have been “adversely affected,” the Administrator shall be entitled to change the
Purchase Periods, Offering Periods, limit the frequency and/or number of changes in the amount
withheld during a Purchase Period or an Offering Period, establish the exchange ratio applicable to
amounts withheld in a currency other than U.S. dollars, permit payroll withholding in excess of the
amount designated by a participant in order to adjust for delays or mistakes in the Company’s
processing of properly completed withholding elections, establish reasonable waiting and adjustment
periods and/or accounting and crediting procedures to ensure that amounts applied toward the
purchase of Common Stock for each participant properly correspond with amounts withheld from the
participant’s Compensation, and establish such other limitations or procedures as the Administrator
determines in its sole discretion advisable which are consistent with the Plan.

-10-

 

          (c) Without regard to whether any participant’s rights may be considered to have been
“adversely affected”, in the event the Administrator determines that the ongoing operation of
the Plan may result in unfavorable financial accounting consequences, the Administrator may,
in its discretion and, to the extent necessary or desirable, modify or amend the Plan to reduce or
eliminate such accounting consequence including, but not limited to:

               (i) amending the Plan to conform with the safe harbor definition under Statement of Financial
Accounting Standards 123(R), including with respect to an Offering Period underway at the time;

               (ii) increasing or otherwise altering the Purchase Price for any Offering Period including an
Offering Period underway at the time of the change in Purchase Price;

               (iii) reducing the maximum percentage of Compensation a participant may elect to set aside as
payroll deductions;

               (iv) shortening any Offering Period so that Offering Period ends on a new Exercise Date,
including an Offering Period underway at the time of the Administrator action; and

               (v) reducing the number of shares that may be purchased upon exercise of outstanding options.

Such modifications or amendments shall not require stockholder approval or the consent of any Plan
participants.

     21. Notices. All notices or other communications by a participant to the Company
under or in connection with the Plan shall be deemed to have been duly given when received in the
form and manner specified by the Company at the location, or by the person, designated by the
Company for the receipt thereof.

     22. Conditions Upon Issuance of Shares. Shares shall not be issued with respect to an
option unless the exercise of such option and the issuance and delivery of such shares pursuant
thereto shall comply with all applicable provisions of law, domestic or foreign, including, without
limitation, the Securities Act of 1933, as amended, the Exchange Act, the rules and regulations
promulgated thereunder, and the requirements of any stock exchange upon which the shares may then
be listed, and shall be further subject to the approval of counsel for the Company with respect to
such compliance.

          As a condition to the exercise of an option, the Company may require the person exercising
such option to represent and warrant at the time of any such exercise that the shares are being
purchased only for investment and without any present intention to sell or distribute such shares
if, in the opinion of counsel for the Company, such a representation is required by any of the
aforementioned applicable provisions of law.

     23. Term of Plan. The Plan shall become effective upon the earlier to occur of its
adoption by the Board or its approval by the stockholders of the Company. It will continue in
effect for a term of twenty (20) years, unless sooner terminated under Section 20 hereof.

-11-

 

     24. Stockholder Approval. The Plan will be subject to the approval by stockholders of
the Company within twelve (12) months after the date the Plan is adopted by the Board. Such
stockholder approval will be obtained in the manner and to the degree required under applicable
law.

     25. Automatic Transfer to Low Price Offering Period. To the extent permitted by
applicable laws, regulations, or stock exchange rules, if the Fair Market Value of the Common Stock
on any Exercise Date in an Offering Period is lower than the Fair Market Value of the Common Stock
on the Offering Date of such Offering Period, then all participants in such Offering Period will be
automatically withdrawn from such Offering Period immediately after the exercise of their option on
such Exercise Date and automatically re-enrolled in the immediately following Offering Period.

-12-

 

EXHIBIT A

ARUBA NETWORKS, INC.

EMPLOYEE STOCK PURCHASE PLAN

SUBSCRIPTION AGREEMENT

			
	 	 	 
	____ Original Application
	 	Offering Date:_____        
	____ Change in Payroll Deduction Rate	 	 
	____ Change of Beneficiary(ies)	 	 

	1.	 	                     hereby elects to participate in the Aruba Networks, Inc. Employee Stock
Purchase Plan (the “Employee Stock Purchase Plan”) and subscribes to purchase shares of the
Company’s Common Stock in accordance with this Subscription Agreement and the Employee Stock
Purchase Plan.
	 
	2.	 	I hereby authorize payroll deductions from each paycheck in the amount of ___% of my
Compensation on each pay day (from 0 to 10%) during the Offering Period in accordance with the
Employee Stock Purchase Plan. (Please note that no fractional percentages are permitted.)
	 
	3.	 	I understand that said payroll deductions shall be accumulated for the purchase of shares of
Common Stock at the applicable Purchase Price determined in accordance with the Employee Stock
Purchase Plan. I understand that if I do not withdraw from an Offering Period, any
accumulated payroll deductions will be used to automatically exercise my option and purchase
Common Stock under the Employee Stock Purchase Plan.
	 
	4.	 	I have received a copy of the complete Employee Stock Purchase Plan. I understand that my
participation in the Employee Stock Purchase Plan is in all respects subject to the terms of
the Plan.
	 
	5.	 	Shares of Common Stock purchased for me under the Employee Stock Purchase Plan should be
issued in the name(s) of (Eligible Employee or Eligible Employee and Spouse only).
	 
	6.	 	I understand that if I dispose of any shares received by me pursuant to the Plan within 2
years after the Offering Date (the first day of the Offering Period during which I purchased
such shares) or one year after the Exercise Date, I will be treated for federal income tax
purposes as having received ordinary income at the time of such disposition in an amount equal
to the excess of the fair market value of the shares at the time such shares were purchased by
me over the price which I paid for the shares. I hereby agree to notify the Company in
writing within 30 days after the date of any disposition of my shares and I will make adequate
provision for Federal, state or other tax withholding obligations, if any, which arise upon
the 

 

 

	 	 	disposition of the Common Stock. The Company may, but will not be obligated to,
withhold from my compensation the amount necessary to meet any applicable withholding
obligation including any withholding necessary to make available to the Company any tax
deductions or benefits attributable to sale or early disposition of Common Stock by me. If
I dispose of such shares at any time after the expiration of the 2-year and 1-year holding
periods, I understand that I will be treated for federal income tax purposes as having
received income only at the time of such disposition, and that such income will be taxed as
ordinary income only to the extent of an amount equal to the lesser of (1) the excess of the
fair market value of the shares at the time of such disposition over the purchase price
which I paid for the shares, or (2) 15% of the fair market value of the shares on the first
day of the Offering Period. The remainder of the gain, if any, recognized on such
disposition will be taxed as capital gain.
	 
	7.	 	I hereby agree to be bound by the terms of the Employee Stock Purchase Plan. The
effectiveness of this Subscription Agreement is dependent upon my eligibility to participate
in the Employee Stock Purchase Plan.
	 
	8.	 	In the event of my death, I hereby designate the following as my beneficiary(ies) to receive
all payments and shares due me under the Employee Stock Purchase Plan:

	 	 	 	 	 	 	 	 	 
	NAME: (Please print) 
	 	 	 	 	 	 	 	 
	 	 
	 

	 	(First)
	 	(Middle)
	 	(Last)	 	 

	 	 	 	 	 	 	 
	 

Relationship

	 	 
	 	 

	 
	 	 	 	 	 	 
	 

Percentage Benefit

	 	 
	 	 

(Address)

	 	 	 	 	 	 	 	 	 
	NAME: (please print) 
	 	 	 	 	 	 	 	 
	 	 
	 

	 	(First)
	 	(Middle)
	 	(Last)	 	 

	 	 	 	 	 	 	 
	 

Relationship

	 	 
	 	 

	 
	 	 	 	 	 	 
	 

Percentage of Benefit

	 	 
	 	 

(Address)

-2-

 

	 	 	 	 	 
	Employee’s Social
	 	 	 	 
	Security Number:
	 	 	 	 
	 

	 	 

	 	 
	Employee’s Address:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 
	 

	 	 	 	 
	 
	 	 	 	 
	 
	 

	 	 	 	 

I UNDERSTAND THAT THIS SUBSCRIPTION AGREEMENT SHALL REMAIN IN EFFECT THROUGHOUT SUCCESSIVE OFFERING
PERIODS UNLESS TERMINATED BY ME.

	 	 	 	 	 	 	 	 	 
	Dated: 
	 	 	 	 	 	 	 	 
	 

	 

	 	 
	 	 

Signature of Employee
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 

Spouse’s Signature (If beneficiary other than spouse)
	 	 

-3-

 

EXHIBIT B

ARUBA NETWORKS, INC.

EMPLOYEE STOCK PURCHASE PLAN

NOTICE OF WITHDRAWAL

     The undersigned participant in the Offering Period of the Aruba Networks, Inc. Employee Stock
Purchase Plan that began on _____,
___ (the “Offering Date”) hereby notifies the Company
that he or she hereby withdraws from the Offering Period. He or she hereby directs the Company to
pay to the undersigned as promptly as practicable all the payroll deductions credited to his or her
account with respect to such Offering Period. The undersigned understands and agrees that his or
her option for such Offering Period will be automatically terminated. The undersigned understands
further that no further payroll deductions will be made for the purchase of shares in the current
Offering Period and the undersigned shall be eligible to participate in succeeding Offering Periods
only by delivering to the Company a new Subscription Agreement.

	 	 	 	 	 	 	 
	 	 	Name and Address of Participant:
	 
	 	 	 	 	 	 
	 	 	   
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	Signature:
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	Date:

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