Document:

exv4w7

 

Exhibit
4.7

DMC STRATEX NETWORKS, INC.

1999 STOCK INCENTIVE PLAN

(Amended as of May 24, 2001)

     1. Purposes of the Plan. The purposes of this Stock Incentive Plan are to attract and
retain the best available personnel, to provide additional incentive to Employees, Directors and
Consultants and to promote the success of the Company’s business.

     2. Definitions. As used herein, the following definitions shall apply:

          (a) “Administrator” means the Board or any of the Committees appointed to administer
the Plan.

          (b) “Affiliate” and “Associate” shall have the respective meanings ascribed to
such terms in Rule 12b-2 promulgated under the Exchange Act.

          (c) “Applicable Laws” means the legal requirements relating to the administration of
stock incentive plans, if any, under applicable provisions of federal securities laws, state
corporate and securities laws, the Code, the rules of any applicable stock exchange or national
market system, and the rules of any foreign jurisdiction applicable to Awards granted to residents
therein.

          (d) “Award” means the grant of an Option or other right or benefit under the Plan.

          (e) “Award Agreement” means the written agreement evidencing the grant of an Award
executed by the Company and the Grantee, including any amendments thereto.

          (f) “Board” means the Board of Directors of the Company.

          (g) “Cause” means, with respect to the termination by the Company or a Related Entity
of the Grantee’s Continuous Service, that such termination is for “Cause” as such term is expressly
defined in a then-effective written agreement between the Grantee and the Company or such Related
Entity, or in the absence of such then-effective written agreement and definition, is based on, in
the determination of the Administrator, the Grantee’s: (i) performance of any act or failure to
perform any act in bad faith and to the detriment of the Company or a Related Entity; (ii)
dishonesty, intentional misconduct or material breach of any agreement with the Company or a
Related Entity; (iii) unauthorized use or disclosure of confidential information or trade secrets
of the Company or a Related Entity or (iv) commission of a crime involving dishonesty, breach of
trust, or physical or emotional harm to any person.

          (h) “Change in Control” means a change in ownership or control of the Company effected
through either of the following transactions:

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               (i) the direct or indirect acquisition by any person or related group of persons (other than
an acquisition from or by the Company or by a Company-sponsored
employee benefit plan or by a person that directly or indirectly controls, is controlled by,
or is under common control with, the Company) of beneficial ownership (within the meaning of Rule
13d-3 of the Exchange Act) of securities possessing more than fifty percent (50%) of the total
combined voting power of the Company’s outstanding securities pursuant to a tender or exchange
offer made directly to the Company’s stockholders which a majority of the Continuing Directors who
are not Affiliates or Associates of the offeror do not recommend such stockholders accept, or

               (ii) a change in the composition of the Board over a period of thirty-six (36) months or less
such that a majority of the Board members (rounded up to the next whole number) ceases, by reason
of one or more contested elections for Board membership, to be comprised of individuals who are
Continuing Directors.

          (i) “Code” means the Internal Revenue Code of 1986, as amended.

          (j) “Committee” means any committee appointed by the Board to administer the Plan.

          (k) “Common Stock” means the common stock of the Company.

          (l) “Company” means DMC Stratex Networks, Inc., a Delaware corporation.

          (m) “Consultant” means any person (other than an Employee or a Director, solely with
respect to rendering services in such person’s capacity as a Director) who is engaged by the
Company or any Related Entity to render consulting or advisory services to the Company or such
Related Entity.

          (n) “Continuing Directors” means members of the Board who either (i) have been Board
members continuously for a period of at least thirty-six (36) months or (ii) have been Board
members for less than thirty-six (36) months and were elected or nominated for election as Board
members by at least a majority of the Board members described in clause (i) who were still in
office at the time such election or nomination was approved by the Board.

          (o) “Continuous Service” means that the provision of services to the Company or a
Related Entity in any capacity of Employee, Director or Consultant, is not interrupted or
terminated. Continuous Service shall not be considered interrupted in the case of (i) any approved
leave of absence, (ii) transfers among the Company, any Related Entity, or any successor, in any
capacity of Employee, Director or Consultant, or (iii) any change in status as long as the
individual remains in the service of the Company or a Related Entity in any capacity of Employee,
Director or Consultant (except as otherwise provided in the Award Agreement). An approved leave of
absence shall include sick leave, military leave, or any other authorized personal leave. For
purposes of Incentive Stock Options, no such leave may exceed ninety (90) days, unless reemployment
upon expiration of such leave is guaranteed by statute or contract.

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          (p) “Corporate Transaction” means any of the following transactions:

               (i) a merger or consolidation in which the Company is not the surviving entity, except for a
transaction the principal purpose of which is to change the state in which the Company is
incorporated;

               (ii) the sale, transfer or other disposition of all or substantially all of the assets of the
Company (including the capital stock of the Company’s subsidiary corporations) in connection with
the complete liquidation or dissolution of the Company;

               (iii) any reverse merger in which the Company is the surviving entity but in which securities
possessing more than fifty percent (50%) of the total combined voting power of the Company’s
outstanding securities are transferred to a person or persons different from those who held such
securities immediately prior to such merger; or

               (iv) acquisition by any person or related group of persons (other than the Company or by a
Company-sponsored employee benefit plan) of beneficial ownership (within the meaning of Rule 13d-3
of the Exchange Act) of securities possessing more than fifty percent (50%) of the total combined
voting power of the Company’s outstanding securities (whether or not in a transaction also
constituting a Change in Control), but excluding any such transaction that the Administrator
determines shall not be a Corporate Transaction.

          (q) “Covered Employee” means an Employee who is a “covered employee” under Section
162(m)(3) of the Code.

          (r) “Director” means a member of the Board or the board of directors of any Related
Entity.

          (s) “Disability” means that a Grantee would qualify for benefit payments under the
long-term disability policy of the Company or the Related Entity to which the Grantee provides
services regardless of whether the Grantee is covered by such policy.

          (t) “Employee” means any person, including an Officer or Director, who is an employee
of the Company or any Related Entity. The payment of a director’s fee by the Company or a Related
Entity shall not be sufficient to constitute “employment” by the Company.

          (u) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

          (v) “Fair Market Value” means, as of any date, the value of Common Stock determined as
follows:

               (i) Where there exists a public market for the Common Stock, the Fair Market Value shall be
(A) the closing price for a Share for the last market trading day prior to the time of the
determination (or, if no closing price was reported on that date, on the last trading date on which
a closing price was reported) on the stock exchange determined by the Administrator to be the
primary market for the Common Stock or the Nasdaq National Market,
whichever is applicable, or (B)
if the Common Stock is not traded on any such exchange or national market system, the average of
the closing bid and asked prices of a Share on the Nasdaq Small Cap Market for the day prior to the
time of the determination (or, if no such prices were
reported on that date, on the last date on which such prices were reported), in each case, as
reported in The Wall Street Journal or such other source as the Administrator deems reliable; or

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               (ii) In the absence of an established market for the Common Stock of the type described in
(i) above, the Fair Market Value thereof shall be determined by the Administrator in good faith.

          (w) “Good Reason” means the occurrence after a Corporate Transaction, Change in
Control or a Related Entity Disposition of any of the following events or conditions unless
consented to by the Grantee:

               (i) (A) a change in the Grantee’s status, title, position or responsibilities which represents
an adverse change from the Grantee’s status, title, position or responsibilities as in effect at
any time within six (6) months preceding the date of a Corporate Transaction, Change in Control or
Related Entity Disposition or at any time thereafter or (B) the assignment to the Grantee of any
duties or responsibilities which are inconsistent with the Optionee’s status, title, position or
responsibilities as in effect at any time within six (6) months preceding the date of a Corporate
Transaction, Change in Control or Related Entity Disposition or at any time thereafter;

               (ii) reduction in the Grantee’s base salary to a level below that in effect at any time within
six (6) months preceding the date of a Corporate Transaction, Change in Control or Related Entity
Disposition or at any time thereafter; or

               (iii) requiring the Grantee to be based at any place outside a 50-mile radius from the
Grantee’s job location or residence prior to the Corporate Transaction, Change in Control or
Related Entity Disposition, except for reasonably required travel on business which is not
materially greater than such travel requirements prior to the Corporate Transaction, Change in
Control or Related Entity Disposition.

          (x) “Grantee” means an Employee, Director or Consultant who receives an Award pursuant
to an Award Agreement under the Plan.

          (y) “Immediate Family” means any child, stepchild, grandchild, parent, stepparent,
grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in
law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, any
person sharing the Grantee’s household (other than a tenant or employee), a trust in which these
persons have more than fifty percent (50%) of the beneficial interest, a foundation in which these
persons (or the Grantee) control the management of assets, and any other entity in which these
persons (or the Grantee) own more than fifty percent (50%) of the voting interests.

          (z) “Incentive Stock Option” means an Option intended to qualify as an incentive stock
option within the meaning of Section 422 of the Code.

          (aa) “Non-Qualified Stock Option” means an Option not intended to qualify as an
Incentive Stock Option.

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          (bb) “Officer” means a person who is an officer of the Company or a Related Entity
within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated
thereunder.

          (cc) “Option” means an option to purchase Shares pursuant to an Award Agreement
granted under the Plan.

          (dd) “Parent” means a “parent corporation,” whether now or hereafter existing, as
defined in Section 424(e) of the Code.

          (ee)
“Performance - Based Compensation” means compensation qualifying as
“performance-based compensation” under Section 162(m) of the Code.

          (ff) “Plan” means this 1999 Stock Incentive Plan.

          (gg) “Related Entity” means any Parent, Subsidiary and any business, corporation,
partnership, limited liability company or other entity in which the Company, a Parent or a
Subsidiary holds a substantial ownership interest, directly or indirectly.

          (hh) “Related Entity Disposition” means the sale, distribution or other disposition by
the Company, a Parent or a Subsidiary of all or substantially all of the interests of the Company,
a Parent or a Subsidiary in any Related Entity effected by a sale, merger or consolidation or other
transaction involving that Related Entity or the sale of all or substantially all of the assets of
that Related Entity, other than any Related Entity Disposition to the Company, a Parent or a
Subsidiary.

          (ii) “Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act or any successor
thereto.

          (jj) “Share” means a share of the Common Stock.

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

     3. Stock Subject to the Plan.

          (a) Subject to the provisions of Section 10 below, the maximum aggregate number of Shares
which may be issued pursuant to all Awards (including Incentive Stock Options) is six million five
hundred thousand (6,500,000) Shares of which no more than seven hundred eighty thousand (780,000)
Shares may be used to grant Awards other than Options. The Shares to be issued pursuant to Awards
may be authorized, but unissued, or reacquired Common Stock.

          (b) Any Shares covered by an Award (or portion of an Award) which is forfeited or canceled,
expires or is settled in cash, shall be deemed not to have been issued for purposes of determining
the maximum aggregate number of Shares which may be issued under the Plan. Shares that actually
have been issued under the Plan pursuant to an Award shall not be returned to the Plan and shall
not become available for future issuance under the Plan, except
that if unvested Shares are forfeited, or repurchased by the Company at their original
purchase price, such Shares shall become available for future grant under the Plan.

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     4. Administration of the Plan.

          (a) Plan Administrator.

               (i) Administration with Respect to Directors and Officers. With respect to grants of
Awards to Directors or Employees who are also Officers or Directors of the Company, the Plan shall
be administered by (A) the Board or (B) a Committee designated by the Board, which Committee shall
be constituted in such a manner as to satisfy the Applicable Laws and to permit such grants and
related transactions under the Plan to be exempt from Section 16(b) of the Exchange Act in
accordance with Rule 16b-3. Once appointed, such Committee shall continue to serve in its
designated capacity until otherwise directed by the Board.

               (ii) Administration With Respect to Consultants and Other Employees.  With
respect to grants of Awards to Employees or Consultants who are neither Directors nor Officers of
the Company, the Plan shall be administered by (A) the Board or (B) a Committee designated by the
Board, which Committee shall be constituted in such a manner as to satisfy the Applicable Laws.
Once appointed, such Committee shall continue to serve in its designated capacity until otherwise
directed by the Board. The Board may authorize one or more Officers to grant such Awards and may
limit such authority as the Board determines from time to time.

               (iii) Administration With Respect to Covered Employees. Notwithstanding the
foregoing, grants of Awards to any Covered Employee intended to qualify as Performance-Based
Compensation shall be made only by a Committee (or subcommittee of a Committee) which is comprised
solely of two or more Directors eligible to serve on a committee making Awards qualifying as
Performance-Based Compensation. In the case of such Awards granted to Covered Employees,
references to the “Administrator” or to a “Committee” shall be deemed to be references to such
Committee or subcommittee.

               (iv) Administration Errors. In the event an Award is granted in a manner inconsistent
with the provisions of this subsection (a), such Award shall be presumptively valid as of its grant
date to the extent permitted by the Applicable Laws.

          (b) Powers of the Administrator. Subject to Applicable Laws and the provisions of the
Plan (including any other powers given to the Administrator hereunder), and except as otherwise
provided by the Board, the Administrator shall have the authority, in its discretion:

               (i) to select the Employees, Directors and Consultants to whom Awards may be granted from time
to time hereunder;

               (ii) to determine whether and to what extent Awards are granted hereunder;

               (iii) to determine the number of Shares or the amount of other consideration to be covered by
each Award granted hereunder;

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          (iv) to approve forms of Award Agreements for use under the Plan;

          (v) to determine the terms and conditions of any Award granted hereunder;

          (vi) to amend the terms of any outstanding Award granted under the Plan, provided that any
amendment that would adversely affect the Grantee’s rights under an outstanding Award shall not be
made without the Grantee’s written consent and that any amendment to reduce the exercise price of
any outstanding Option shall not be made without the approval of the Company’s stockholders;

          (vii) to construe and interpret the terms of the Plan and Awards granted pursuant to the Plan,
including without limitation, any notice of Award or Award Agreement, granted pursuant to the Plan;

          (viii) to establish additional terms, conditions, rules or procedures to accommodate the rules
or laws of applicable foreign jurisdictions and to afford Grantees favorable treatment under such
laws; provided, however, that no Award shall be granted under any such additional terms,
conditions, rules or procedures with terms or conditions which are inconsistent with the provisions
of the Plan; and

          (ix) to take such other action, not inconsistent with the terms of the Plan, as the
Administrator deems appropriate.

     5. Eligibility. Awards other than Incentive Stock Options may be granted to
Employees, Directors and Consultants. Incentive Stock Options may be granted only to Employees of
the Company, a Parent or a Subsidiary. An Employee, Director or Consultant who has been granted an
Award may, if otherwise eligible, be granted additional Awards. Awards may be granted to such
Employees, Directors or Consultants who are residing in foreign jurisdictions as the Administrator
may determine from time to time.

     6. Terms and Conditions of Awards.

          (a) Type of Awards. The Administrator is authorized under the Plan to award any type
of arrangement to an Employee, Director or Consultant that is not inconsistent with the provisions
of the Plan and that by its terms involves or might involve the issuance of (i) Shares or (ii) an
Option with a fixed or variable price related to the Fair Market Value of the Shares and with an
exercise right or vesting provision related to the passage of time, the occurrence of one or more
events, or the satisfaction of performance criteria or other conditions.

          (b) Designation of Award. Each Award shall be designated in the Award Agreement. In
the case of an Option, the Option shall be designated as either an Incentive Stock Option or a
Non-Qualified Stock Option. However, notwithstanding such designation, to the extent that the
aggregate Fair Market Value of Shares subject to Options designated as Incentive Stock Options
which become exercisable for the first time by a Grantee during any calendar year (under all plans
of the Company or any Parent or Subsidiary) exceeds $100,000, such excess Options, to the extent of
the Shares covered thereby in excess of the foregoing limitation, shall be treated as
Non-Qualified Stock Options. For this purpose, Incentive Stock Options shall be
taken into account in the order in which they were granted, and the Fair Market Value of the
Shares shall be determined as of the date the Option with respect to such Shares is granted.

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          (c) Conditions of Award. Subject to the terms of the Plan, the Administrator shall
determine the provisions, terms, and conditions of each Award including, but not limited to, the
Award vesting schedule, repurchase provisions, rights of first refusal, forfeiture provisions, form
of payment (cash, Shares, or other consideration) upon settlement of the Award, payment
contingencies, and satisfaction of any performance criteria. The performance criteria established
by the Administrator may be based on any one of, or combination of, increase in share price,
earnings per share, total stockholder return, return on equity, return on assets, return on
investment, net operating income, cash flow, revenue, economic value added, personal management
objectives, or other measure of performance selected by the Administrator. Partial achievement of
the specified criteria may result in a payment or vesting corresponding to the degree of
achievement as specified in the Award Agreement.

          (d) Acquisitions and Other Transactions. The Administrator may issue Awards under the
Plan in settlement, assumption or substitution for, outstanding awards or obligations to grant
future awards in connection with the Company or a Related Entity acquiring another entity, an
interest in another entity or an additional interest in a Related Entity whether by merger, stock
purchase, asset purchase or other form of transaction.

          (e) Deferral of Award Payment. The Administrator may establish one or more programs
under the Plan to permit selected Grantees the opportunity to elect to defer receipt of
consideration upon exercise of an Award, satisfaction of performance criteria, or other event that
absent the election would entitle the Grantee to payment or receipt of Shares or other
consideration under an Award. The Administrator may establish the election procedures, the timing
of such elections, the mechanisms for payments of, and accrual of interest or other earnings, if
any, on amounts, Shares or other consideration so deferred, and such other terms, conditions, rules
and procedures that the Administrator deems advisable for the administration of any such deferral
program.

          (f) Award Exchange Programs. The Administrator may establish one or more programs
under the Plan to permit selected Grantees to exchange an Award under the Plan for one or more
other types of Awards under the Plan on such terms and conditions as determined by the
Administrator from time to time.

          (g) Separate Programs. The Administrator may establish one or more separate programs
under the Plan for the purpose of issuing particular forms of Awards to one or more classes of
Grantees on such terms and conditions as determined by the Administrator from time to time.

          (h) Individual Award Limit. The maximum number of Shares with respect to which
Options may be granted to any Employee in any fiscal year of the Company shall be seven hundred
fifty thousand (750,000) Shares. In connection with an Employee’s commencement of Continuous
Service, the Employee may be granted Options for up to an additional seven hundred fifty thousand
(750,000) Shares which shall not count against the limit set forth in the previous sentence. The
foregoing limitations shall be adjusted proportionately in connection with any

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change in the Company’s capitalization pursuant to Section 10 below. To the extent required
by Section 162(m) of the Code or the regulations thereunder, in applying the foregoing limitation
with respect to an Employee, if any Option is canceled, the canceled Option shall continue to count
against the maximum number of Shares with respect to which Options may be granted to the Employee.
For this purpose, the repricing of an Option shall be treated as the cancellation of the existing
Option and the grant of a new Option.

          (i) Term of Award. The term of each Award shall be the term stated in the Award
Agreement, provided, however, that the term of any Award shall be no more than seven (7) years from
the date of grant thereof. However, in the case of an Incentive Stock Option granted to a Grantee
who, at the time the Option is granted, owns stock representing more than ten percent (10%) of the
voting power of all classes of stock of the Company or any Parent or Subsidiary, the term of the
Incentive Stock Option shall be five (5) years from the date of grant thereof or such shorter term
as may be provided in the Award Agreement.

          (j) Transferability of Awards. Incentive Stock Options may not be sold, pledged,
assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws
of descent or distribution and may be exercised, during the lifetime of the Grantee, only by the
Grantee; provided, however, that the Grantee may designate a beneficiary of the Grantee’s Incentive
Stock Option in the event of the Grantee’s death on a beneficiary designation form provided by the
Administrator. Other Awards may be transferred by gift or through a domestic relations order to
members of the Grantee’s Immediate Family to the extent provided in the Award Agreement or in the
manner and to the extent determined by the Administrator.

          (k) Time of Granting Awards. The date of grant of an Award shall for all purposes be
the date on which the Administrator makes the determination to grant such Award, or such other date
as is determined by the Administrator. Notice of the grant determination shall be given to each
Employee, Director or Consultant to whom an Award is so granted within a reasonable time after the
date of such grant.

     7. Award Exercise or Purchase Price, Consideration, and Taxes.

          (a) Exercise or Purchase Price. The exercise or purchase price, if any, for an Award
shall be as follows:

               (i) In the case of an Incentive Stock Option:

                    (A) granted to an Employee who, at the time of the grant of such Incentive Stock Option owns
stock representing more than ten percent (10%) of the voting power of all classes of stock of the
Company or any Parent or Subsidiary, the per Share exercise price shall be not less than one
hundred ten percent (110%) of the Fair Market Value per Share on the date of grant; or

                    (B) granted to any Employee other than an Employee described in the preceding paragraph, the
per Share exercise price shall be not less than one hundred percent (100%) of the Fair Market Value
per Share on the date of grant.

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               (ii) In the case of a Non-Qualified Stock Option, the per Share exercise price shall be not
less than one-hundred percent (100%) of the Fair Market Value per Share on the date of grant.

               (iii) In the case of Awards intended to qualify as Performance-Based Compensation, the
exercise or purchase price, if any, shall be not less than one hundred percent (100%) of the Fair
Market Value per Share on the date of grant.

               (iv) In the case of other Awards, such price as is determined by the Administrator.

               (v) Notwithstanding the foregoing provisions of this Section 7(a), in the case of an Award
issued pursuant to Section 6(d), above, the exercise or purchase price for the Award shall be
determined in accordance with the principles of Section 424(a) of the Code.

          (b) Consideration. Subject to Applicable Laws, the consideration to be paid for the
Shares to be issued upon exercise or purchase of an Award including the method of payment, shall be
determined by the Administrator (and, in the case of an Incentive Stock Option, shall be determined
at the time of grant). In addition to any other types of consideration the Administrator may
determine, the Administrator is authorized to accept as consideration for Shares issued under the
Plan the following, provided that the portion of the consideration equal to the par value of the
Shares must be paid in cash or other legal consideration permitted by the Delaware General
Corporation Law:

               (i) cash or check in U.S. dollars;

               (ii) surrender of Shares or delivery of a properly executed form of attestation of ownership
of Shares as the Administrator may require (including withholding of Shares otherwise deliverable
upon exercise of the Award) which have a Fair Market Value on the date of surrender or attestation
equal to the aggregate exercise price of the Shares as to which said Award shall be exercised (but
only to the extent that such exercise of the Award would not result in an accounting compensation
charge with respect to the Shares used to pay the exercise price unless otherwise determined by the
Administrator);

               (iii) with respect to Options, payment through a broker-dealer sale and remittance procedure
pursuant to which the Grantee (A) shall provide written instructions to a Company designated
brokerage firm to effect the immediate sale of some or all of the purchased Shares and remit to the
Company, out of the sale proceeds available on the settlement date, sufficient funds to cover the
aggregate exercise price payable for the purchased Shares and (B) shall provide written directives
to the Company to deliver the certificates for the purchased Shares directly to such brokerage firm
in order to complete the sale transaction; or

               (iv) any combination of the foregoing methods of payment.

          (c) Taxes. No Shares shall be delivered under the Plan to any Grantee or other person
until such Grantee or other person has made arrangements acceptable to the Administrator for the
satisfaction of any foreign, federal, state, or local income and employment tax withholding
obligations, including, without limitation, obligations incident to the receipt of
Shares or the disqualifying disposition of Shares received on exercise of an Incentive Stock
Option. Upon exercise of an Award, the Company shall withhold or collect from Grantee an amount
sufficient to satisfy such tax obligations.

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     8. Exercise of Award.

          (a) Procedure for Exercise; Rights as a Stockholder.

               (i) Any Award granted hereunder shall be exercisable at such times and under such conditions
as determined by the Administrator under the terms of the Plan and specified in the Award
Agreement; provided, however, that no Award shall be exercisable prior to the first anniversary of
the grant date.

               (ii) An Award shall be deemed to be exercised when written notice of such exercise has been
given to the Company in accordance with the terms of the Award by the person entitled to exercise
the Award and full payment for the Shares with respect to which the Award is exercised, including,
to the extent selected, use of the broker-dealer sale and remittance procedure to pay the purchase
price as provided in Section 7(b)(iii) Until the issuance (as evidenced by the appropriate entry
on the books of the Company or of a duly authorized transfer agent of the Company) of the stock
certificate evidencing such Shares, no right to vote or receive dividends or any other rights as a
stockholder shall exist with respect to Shares subject to an Award, notwithstanding the exercise of
an Option or other Award. The Company shall issue (or cause to be issued) such stock certificate
promptly upon exercise of the Award. No adjustment will be made for a dividend or other right for
which the record date is prior to the date the stock certificate is issued, except as provided in
the Award Agreement or Section 10, below.

          (b) Exercise of Award Following Termination of Continuous Service.

               (i) An Award may not be exercised after the termination date of such Award set forth in the
Award Agreement and may be exercised following the termination of a Grantee’s Continuous Service
only to the extent provided in the Award Agreement.

               (ii) Where the Award Agreement permits a Grantee to exercise an Award following the
termination of the Grantee’s Continuous Service for a specified period, the Award shall terminate
to the extent not exercised on the last day of the specified period or the last day of the original
term of the Award, whichever occurs first.

               (iii) Any Award designated as an Incentive Stock Option to the extent not exercised within the
time permitted by law for the exercise of Incentive Stock Options following the termination of a
Grantee’s Continuous Service shall convert automatically to a Non-Qualified Stock Option and
thereafter shall be exercisable as such to the extent exercisable by its terms for the period
specified in the Award Agreement.

     9. Conditions Upon Issuance of Shares.

          (a) Shares shall not be issued pursuant to the exercise of an Award unless the exercise of
such Award and the issuance and delivery of such Shares pursuant thereto shall
comply with all Applicable Laws, and shall be further subject to the approval of counsel for
the Company with respect to such compliance.

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          (b) As a condition to the exercise of an Award, the Company may require the person exercising
such Award 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 Applicable
Laws.

     10. Adjustments Upon Changes in Capitalization. Subject to any required action by the
stockholders of the Company, the number of Shares covered by each outstanding Award, and the number
of Shares which have been authorized for issuance under the Plan but as to which no Awards have yet
been granted or which have been returned to the Plan, the exercise or purchase price of each such
outstanding Award, the maximum number of Shares with respect to which Options may be granted to any
Employee in any fiscal year of the Company, as well as any other terms that the Administrator
determines require adjustment shall be proportionately adjusted for (i) any increase or decrease in
the number of issued Shares resulting from a stock split, reverse stock split, stock dividend,
combination or reclassification of the Shares, or similar event affecting the Shares, (ii) any
other increase or decrease in the number of issued Shares effected without receipt of consideration
by the Company, or (iii) as the Administrator may determine in its discretion, any other
transaction with respect to Common Stock to which Section 424(a) of the Code applies or any similar
transaction; 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 and its determination shall be final, binding and conclusive. Except as
the Administrator determines, 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
hereof shall be made with respect to, the number or price of Shares subject to an Award.

     11. Corporate Transactions/Changes in Control/Related Entity Dispositions. Except as
may be provided in an Award Agreement:

          (a) In the event of any Corporate Transaction, each Award which is at the time outstanding
under the Plan automatically shall become fully vested and exercisable and be released from any
restrictions on transfer (other than transfer restrictions applicable to Incentive Stock Options)
and repurchase or forfeiture rights, immediately prior to the specified effective date of such
Corporate Transaction, for all of the Shares at the time represented by such Award. Effective upon
the consummation of the Corporate Transaction, all outstanding Awards under the Plan shall
terminate. However, all such Awards shall not terminate if the Awards are, in connection with the
Corporate Transaction, assumed by the successor corporation or Parent thereof. In addition, an
outstanding Award under the Plan shall not so fully vest and be exercisable and released from such
limitations if and to the extent: (i) such Award is, in connection with the Corporate Transaction,
either assumed by the successor corporation or Parent thereof or replaced with a comparable Award
with respect to shares of the capital stock of the successor corporation or Parent thereof or (ii)
such Award is to be replaced with a cash incentive program of the successor corporation which
preserves the compensation element of such Award existing at the time of the Corporate Transaction
and provides for subsequent payout
in accordance with the same vesting schedule applicable to such Award The determination of
Award comparability above shall be made by the Administrator.

12

 

          (b) The Administrator shall have the authority, exercisable either in advance of any actual or
anticipated Change in Control or at the time of an actual Change in Control Disposition and
exercisable at the time of the grant of an Award under the Plan or any time while an Award remains
outstanding, to provide for the full automatic vesting and exercisability of one or more
outstanding unvested Awards under the Plan and the release from restrictions on transfer and
repurchase or forfeiture rights of such Awards in connection with a Change in Control, on such
terms and conditions as the Administrator may specify. The Administrator also shall have the
authority to condition any such Award vesting and exercisability or release from such limitations
upon the subsequent termination of the Continuous Service of the Grantee within a specified period
following the effective date of the Change in Control. The Administrator may provide that any
Awards so vested or released from such limitations in connection with a Change in Control shall
remain fully exercisable until the expiration or sooner termination of the Award.

          (c) Effective upon the consummation of a Related Entity Disposition, for purposes of the Plan
and all Awards, the Continuous Service of each Grantee who is at the time engaged primarily in
service to the Related Entity involved in such Related Entity Disposition shall be deemed to
terminate and each Award of such Grantee which is at the time outstanding under the Plan
automatically shall become fully vested and exercisable and be released from any restrictions on
transfer (other than transfer restrictions applicable to Incentive Stock Options) and repurchase or
forfeiture rights for all of the Shares at the time represented by such Award and be exercisable in
accordance with the terms of the Award Agreement evidencing such Award. However, such Continuous
Service shall be not be deemed to terminate if such Award is, in connection with the Related Entity
Disposition, assumed by the successor entity or its Parent. In addition, such Continuous Service
shall not be deemed to terminate and an outstanding Award under the Plan shall not so fully vest
and be exercisable and released from such limitations if and to the extent: (i) such Award is, in
connection with the Related Entity Disposition, either to be assumed by the successor entity or its
parent or to be replaced with a comparable Award with respect to interests in the successor entity
or its parent or (ii) such Award is to be replaced with a cash incentive program of the successor
entity which preserves the compensation element of such Award existing at the time of the Related
Entity Disposition and provides for subsequent payout in accordance with the same vesting schedule
applicable to such Award. The determination of Award comparability above shall be made by the
Administrator.

          (d) The portion of any Incentive Stock Option accelerated under this Section 11 in connection
with a Corporate Transaction, Change in Control or Related Entity Disposition shall remain
exercisable as an Incentive Stock Option under the Code only to the extent the $100,000 dollar
limitation of Section 422(d) of the Code is not exceeded. To the extent such dollar limitation is
exceeded, the accelerated excess portion of such Option shall be exercisable as a Non-Qualified
Stock Option.

     12. Effective Date and 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 shall
continue in effect for a term of seven (7) years unless sooner terminated. Subject to
Section 17, below, and Applicable Laws, Awards may be granted under the Plan upon its becoming
effective.

13

 

     13. Amendment, Suspension or Termination of the Plan.

          (a) The Board may at any time amend, suspend or terminate the Plan. To the extent necessary to
comply with Applicable Laws, the Company shall obtain stockholder approval of any Plan amendment in
such a manner and to such a degree as required. In addition, any amendment to this Section 13(a)
or Section 4(b)(vi) shall also require stockholder approval.

          (b) No Award may be granted during any suspension of the Plan or after termination of the
Plan.

          (c) Any amendment, suspension or termination of the Plan (including termination of the Plan
under Section 12, above) shall not affect Awards already granted, and such Awards shall remain in
full force and effect as if the Plan had not been amended, suspended or terminated, unless mutually
agreed otherwise between the Grantee and the Administrator, which agreement must be in writing and
signed by the Grantee and the Company.

     14. Reservation of Shares.

          (a) The Company, during the term of the Plan, will at all times reserve and keep available
such number of Shares as shall be sufficient to satisfy the requirements of the Plan.

          (b) The inability of the Company to obtain authority from any regulatory body having
jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful
issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of
the failure to issue or sell such Shares as to which such requisite authority shall not have been
obtained.

     15. No Effect on Terms of Employment/Consulting Relationship. The Plan shall not
confer upon any Grantee any right with respect to the Grantee’s Continuous Service, nor shall it
interfere in any way with his or her right or the Company’s right to terminate the Grantee’s
Continuous Service at any time, with or without cause.

     16. No Effect on Retirement and Other Benefit Plans. Except as specifically provided
in a retirement or other benefit plan of the Company or a Related Entity, Awards shall not be
deemed compensation for purposes of computing benefits or contributions under any retirement plan
of the Company or a Related Entity, and shall not affect any benefits under any other benefit plan
of any kind or any benefit plan subsequently instituted under which the availability or amount of
benefits is related to level of compensation. The Plan is not a “Retirement Plan” or “Welfare
Plan” under the Employee Retirement Income Security Act of 1974, as amended.

     17. Stockholder Approval. The Plan was originally adopted by the Board on June 11,
1999 and by the Company’s stockholders on August 10, 1999. On May 24, 2001, the Board adopted and
approved an amendment and restatement of the Plan to increase the number of Shares available for
issuance under the Plan, added a prohibition on option repricing unless such
repricing is approved by stockholders and made stockholder approval necessary for amendment of
certain sections of the Plan. The May 24, 2001 Board amendment was approved by the Company’s
stockholders on August 14, 2001.

14exv4w8

 

Exhibit 4.8

STRATEX NETWORKS, INC.

2002 STOCK INCENTIVE PLAN

     1. Purposes of the Plan. The purposes of this Stock Incentive Plan are to
attract and retain the best available personnel, to provide additional incentive to Employees,
Directors and Consultants and to promote the success of the Company’s business.

     2. Definitions. As used herein, the following definitions shall apply:

          (a) “Administrator” means the Board or any of the Committees appointed to
administer the Plan.

          (b) “Affiliate” and “Associate” shall have the respective meanings
ascribed to such terms in Rule 12b-2 promulgated under the Exchange Act.

          (c) “Applicable Laws” means the legal requirements relating to the administration
of stock incentive plans, if any, under applicable provisions of federal securities laws, state
corporate and securities laws, the Code, the rules of any applicable stock exchange or national
market system, and the rules of any foreign jurisdiction applicable to Awards granted to residents
therein.

          (d) “Assumed” means that (i) pursuant to a Corporate Transaction defined in
Section 2(q)(i), 2(q)(ii) or 2(q)(iii), the contractual obligations represented by the Award are
expressly assumed (and not simply by operation of law) by the successor entity or its Parent in
connection with the Corporate Transaction or (ii) pursuant to a Corporate Transaction defined in Section
2(q)(iv) or 2(q)(v), the Award is expressly affirmed by the Company.

          (e) “Award” means the grant of an Option, Restricted Stock, Share or other right
or benefit under the Plan.

          (f) “Award Agreement” means the written agreement evidencing the grant of an
Award executed by the Company and the Grantee, including any amendments thereto.

          (g) “Board” means the Board of Directors of the Company.

          (h) “Cause” means, with respect to the termination by the Company or a Related
Entity of the Grantee’s Continuous Service, that such termination is for “Cause” as such term is
expressly defined in a then-effective written agreement between the Grantee and the Company or
such Related Entity, or in the absence of such then-effective written agreement and definition, is
based on, in the determination of the Administrator, the Grantee’s: (i) performance of any act or
failure to perform any act in bad faith and to the detriment of the Company or a Related Entity;
(ii) dishonesty,
intentional misconduct or material breach of any agreement with the Company or a Related Entity;
(iii) unauthorized use or disclosure of confidential information or trade secrets of the Company or
a Related Entity or (iv) commission of a crime involving dishonesty, breach of trust, or physical
or emotional harm to any person.

 

 

          (i) “Change in Control” means a change in ownership or control of the Company
effected through either of the following transactions:

               (i) the direct or indirect acquisition by any person or related group of persons (other
than an acquisition from or by the Company or by a Company-sponsored employee benefit plan or by a
person that directly or indirectly controls, is controlled by, or is under common control
with, the Company) of beneficial ownership (within the meaning of Rule 13d-3 of the Exchange Act)
of securities possessing more than fifty percent (50%) of the total combined voting power of the
Company’s outstanding securities pursuant to a tender or exchange offer made directly to the
Company’s stockholders which a majority of the Continuing Directors who are not Affiliates or
Associates of the offer or do not recommend such stockholders accept, or

               (ii) a change in the composition of the Board over a period of thirty-six (36) months or
less such that a majority of the Board members (rounded up to the next whole number) ceases, by
reason of one or more contested elections for Board membership, to be comprised of individuals who
are Continuing Directors.

          (j) “Code” means the Internal Revenue Code of 1986, as amended.

          (k) “Committee” means any committee appointed by the Board to administer the
Plan.

          (l) “Common Stock” means the common stock of the Company.

          (m) “Company” means Stratex Networks, Inc., a Delaware corporation.

          (n) “Consultant” means any person (other than an Employee or a Director, solely
with respect to rendering services in such person’s capacity as a Director) who is engaged by the
Company or any Related Entity to render consulting or advisory services to the Company or such
Related Entity.

          (o) “Continuing Directors” means members of the Board who either (i) have been
Board members continuously for a period of at least thirty-six (36) months or (ii) have been Board
members for less than thirty-six (36) months and were elected or nominated for election as Board
members by at least a majority of the Board members described in clause (i) who were still in office at the time
such election or nomination was approved by the Board.

          (p) “Continuous Service” means that the provision of services to the Company or a
Related Entity in any capacity of Employee, Director or Consultant, is not interrupted or
terminated. Continuous Service shall not be considered interrupted in the case of (i) any approved
leave of absence, (ii) transfers among the Company, any Related Entity, or any successor, in any
capacity of Employee, Director or Consultant, or (iii) any change in status as long as the
individual remains in the service of the Company or a Related Entity in any capacity of Employee,
Director or Consultant (except as otherwise provided in the Award Agreement). An approved leave of
absence shall include sick leave, military leave, or any other authorized personal leave. For
purposes of each Incentive Stock Option granted under the Plan, if such leave exceeds ninety (90)
days, and reemployment upon expiration of such leave is not guaranteed by statute or contract, then
the Incentive Stock
Option shall be treated as a Non-Qualified Stock Option on the day three (3) months and one (1) day
following the expiration of such ninety (90) day period.

 

 

          (q) “Corporate Transaction” means any of the following transactions:

               (i) a merger or consolidation in which the Company is not the surviving entity, except
for a transaction the principal purpose of which is to change the state in which the Company is
incorporated;

               (ii) the sale, transfer or other disposition of all or substantially all of the assets of
the Company (including the capital stock of the Company’s subsidiary corporations);

               (iii) the complete liquidation or dissolution of the Company;

               (iv) any reverse merger in which the Company is the surviving entity but in which
securities possessing more than forty percent (40%) of the total combined voting power of the
Company’s outstanding securities are transferred to a person or persons different from those who
held such securities immediately prior to such merger; or

               (v) acquisition in a single or series of related transactions by any person or related
group of persons (other than the Company or by a Company-sponsored employee benefit plan) of
beneficial ownership (within the meaning of Rule 13d-3 of the Exchange Act) of securities
possessing more than forty percent (40%) of the total combined voting power of the Company’s
outstanding securities but excluding any such transaction or series of related transactions that
the Administrator determines shall not be a Corporate Transaction.

          (r) “Covered Employee” means an Employee who is a “covered employee” under
Section 162(m)(3) of the Code.

          (s) “Director” means a member of the Board or the board of directors of any
Related Entity.

          (t) “Disability” means as defined under the long-term disability policy of the
Company or the Related Entity to which the Grantee provides services regardless of whether the
Grantee is covered by such policy. If the Company or the Related Entity to which the Grantee
provides service does not have a long-term disability plan in place, “Disability” means that a
Grantee is unable to carry out the responsibilities and functions of the position held by the
Grantee by reason of any medically determinable physical or mental impairment for a period of not
less than ninety (90) consecutive days. A Grantee will not be considered to have incurred a
Disability unless he or she furnishes proof of such impairment sufficient to satisfy the
Administrator in its discretion.

          (u) “Employee” means any person, including an Officer or Director, who is an
employee of the Company or any Related Entity. The payment of a director’s fee by the Company or a
Related Entity shall not be sufficient to constitute “employment” by the Company.

          (v) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

 

          (w) “Fair Market Value” means, as of any date, 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 National Market or The NASDAQ Small Cap 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 (or, if no closing sales price or closing bid was reported on that date,
as applicable, on the last trading date such closing sales price or closing bid was reported), as
reported in The Wall Street Journal or such other source as the Administrator deems reliable;

               (ii) If the Common Stock is regularly quoted on an automated quotation system (including
the OTC Bulletin Board) or by a recognized securities dealer, but selling prices are not reported,
the Fair Market Value of a share of Common Stock shall be the mean between the high bid
and low asked prices for the Common Stock on the date of determination (or, if no such prices were
reported on that date, on the last date such prices were reported), 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 of the type described in
(i) and (ii), above, the Fair Market Value thereof shall be determined by the Administrator in good
faith.

          (x) “Good Reason” means the occurrence after a Corporate Transaction or Change in
Control of any of the following events or conditions unless consented to by the Grantee (and the
Grantee shall be deemed to have consented to any such event or condition unless the Grantee
provides written notice of the Grantee’s non-acquiescence within 30 days of the effective time of
such event or condition):

               (i) a change in the Grantee’s responsibilities or duties which represents a material and
substantial diminution in the Grantee’s responsibilities or duties as in effect immediately
preceding the consummation of a Corporate Transaction or Change in Control;

               (ii) a reduction in the Grantee’s base salary to a level below that in effect at any time
within six (6) months preceding the consummation of a Corporate Transaction or Change in Control or
at any time thereafter; or

               (iii) requiring the Grantee to be based at any place outside a 50-mile radius from the
Grantee’s job location or residence prior to the Corporate Transaction or Change in Control, except
for reasonably required travel on business which is not materially greater than such travel
requirements prior to the Corporate Transaction or Change in Control.

          (y) “Grantee” means an Employee, Director or Consultant who receives an Award
pursuant to an Award Agreement under the Plan.

 

 

          (z) “Immediate Family” means any child, stepchild, grandchild, parent,
stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law,
father-in-law, son-in law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive
relationships, any person
sharing the Grantee’s household (other than a tenant or employee), a trust in which these persons
(or the Grantee) have more than fifty percent (50%) of the beneficial interest, a foundation in
which these persons (or the Grantee) control the management of assets, and any other entity in
which these persons
(or the Grantee) own more than fifty percent (50%) of the voting interests.

          (aa) “Incentive Stock Option” means an Option intended to qualify as an incentive
stock option within the meaning of Section 422 of the Code.

          (bb) “Non-Qualified Stock Option” means an Option not intended to qualify as an
Incentive Stock Option.

          (cc) “Officer” means a person who is an officer of the Company or a Related Entity
within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated
thereunder.

          (dd) “Option” means an option to purchase Shares pursuant to an Award Agreement
granted under the Plan.

          (ee) “Parent” means a “parent corporation,” whether now or hereafter existing, as
defined in Section 424(e) of the Code.

          (ff)
“Performance - Based Compensation” means compensation qualifying as
“performance-based compensation” under Section 162(m) of the Code.

          (gg) “Plan” means this 2002 Stock Incentive Plan.

          (hh) “Related Entity” means any Parent or Subsidiary of the Company and any
business, corporation, partnership, limited liability company or other entity in which the Company
or a Parent or a Subsidiary of the Company holds a substantial ownership interest, directly or
indirectly.

          (ii) “Replaced” means that pursuant to a Corporate Transaction the Award is
replaced with a comparable stock award or the Award is replaced with a cash incentive program of
the successor entity or Parent thereof which preserves the compensation element of such Award
existing at the time of the Corporate Transaction and provides for subsequent payout in accordance
with the same vesting schedule applicable to such Award. The determination of Award comparability
shall be made by the Administrator and its determination shall be final, binding and conclusive.

          (jj) “Restricted Stock” means Shares issued under the Plan to the Grantee for such
consideration, if any, and subject to such restrictions on transfer, rights of first refusal,
repurchase provisions, forfeiture provisions, and other terms and conditions as established by the
Administrator.

          (kk) “Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act or any
successor thereto.

 

 

          (ll) “Share” means a share of the Common Stock.

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

     3. Stock Subject to the Plan.

          (a) Subject to the provisions of Section 10, below, the maximum aggregate number of
Shares which may be issued pursuant to all Awards (including Incentive Stock Options) is ten
million (10,000,000) Shares. Notwithstanding the foregoing and subject to the provisions of
Section 10, below, of the number of Shares specified above, the maximum aggregate number of Shares
which may be issued pursuant to all Awards other than Options is one million two hundred thousand
(1,200,000) Shares. The Shares to be issued pursuant to Awards may be authorized, but unissued, or
reacquired Common Stock.

          (b) Any Shares covered by an Award (or portion of an Award) which is forfeited or
canceled, expires or is settled in cash, shall be deemed not to have been issued for purposes of
determining the maximum aggregate number of Shares which may be issued under the Plan. Shares that
actually have been issued under the Plan pursuant to an Award shall not be returned to the Plan and
shall not become available for future issuance under the Plan, except that if unvested Shares are
forfeited, or repurchased by the Company at their original purchase price, such Shares shall become
available for future grant under the Plan.

     4. Administration of the Plan.

          (a) Plan Administrator.

               (i) Administration with Respect to Directors and Officers. With respect to grants
of Awards to Directors or Employees who are also Officers or Directors of the Company, the Plan
shall be administered by (A) the Board or (B) a Committee designated by the Board, which Committee
shall be constituted in such a manner as to satisfy the Applicable Laws and to permit such grants
and related transactions under the Plan to be exempt from Section 16(b) of the Exchange Act in
accordance with Rule 16b-3. Once appointed, such Committee shall continue to serve in its
designated capacity until otherwise directed by the Board.

               (ii) Administration With Respect to Consultants and Other Employees. With respect
to grants of Awards to Employees or Consultants who are neither Directors nor Officers of the
Company, the Plan shall be administered by (A) the Board or (B) a Committee designated by the
Board, which Committee shall be constituted in such a manner as to satisfy the Applicable Laws.
Once appointed, such Committee shall continue to serve in its designated capacity until otherwise
directed by the Board. The Board may authorize one or more Officers to grant such Awards and may
limit such authority as the Board determines from time to time.

               (iii) Administration With Respect to Covered Employees. Notwithstanding the
foregoing, grants of Awards to any Covered Employee intended to qualify as Performance-Based

 

 

Compensation shall be made only by a Committee (or subcommittee of a Committee) which is comprised
solely of two or more Directors eligible to serve on a committee making Awards qualifying as
Performance-Based Compensation. In the case of such Awards granted to Covered Employees,
references to the “Administrator” or to a “Committee” shall be deemed to be references to such
Committee or subcommittee.

               (iv) Administration Errors. In the event an Award is granted in a manner
inconsistent with the provisions of this subsection (a), such Award shall be presumptively valid as
of its grant date to the extent permitted by the Applicable Laws.

          (b) Powers of the Administrator. Subject to Applicable Laws and the provisions of
the Plan (including any other powers given to the Administrator hereunder), and except as otherwise
provided by the Board, the Administrator shall have the authority, in its discretion:

               (i) to select the Employees, Directors and Consultants to whom Awards may be granted from
time to time hereunder;

               (ii) to determine whether and to what extent Awards are granted hereunder;

               (iii) to determine the number of Shares or the amount of other consideration to be covered
by each Award granted hereunder;

               (iv) to approve forms of Award Agreements for use under the Plan;

               (v) to determine the terms and conditions of any Award granted hereunder;

               (vi) to amend the terms of any outstanding Award granted under the Plan, provided that any
amendment that would adversely affect the Grantee’s rights under an outstanding Award shall not be
made without the Grantee’s written consent and that any amendment to reduce the exercise price of
any outstanding Option shall not be made without the approval of the Company’s
stockholders;

               (vii) to construe and interpret the terms of the Plan and Awards granted pursuant to the
Plan, including without limitation, any notice of Award or Award Agreement, granted pursuant to the
Plan;

               (viii) to establish additional terms, conditions, rules or procedures to accommodate the
rules or laws of applicable foreign jurisdictions and to afford Grantees favorable treatment under
such rules or laws; provided, however, that no Award shall be granted under any such additional
terms, conditions, rules or procedures with terms or conditions which are inconsistent with the
provisions of the Plan; and

               (ix) to take such other action, not inconsistent with the terms of the Plan, as the
Administrator deems appropriate.

 

 

     5. Eligibility. Awards other than Incentive Stock Options may be granted to
Employees, Directors and Consultants. Incentive Stock Options may be granted only to Employees of
the Company or a Parent or a Subsidiary of the Company. An Employee, Director or Consultant who has
been granted an Award may, if otherwise eligible, be granted additional Awards. Awards may be
granted to such Employees, Directors or Consultants who are residing in foreign jurisdictions as
the Administrator may determine from time to time.

     6. Terms and Conditions of Awards.

          (a) Type of Awards. The Administrator is authorized under the Plan to award any type
of arrangement to an Employee, Director or Consultant that is not inconsistent with the provisions
of the Plan and that by its terms involves or might involve the issuance of (i) Shares, (ii) an
Option with a fixed or variable price related to the Fair Market Value of the Shares and with an
exercise right or vesting provision related to the passage of time, the occurrence of one or more
events, or the satisfaction of performance criteria or other conditions or (iii) Restricted Stock.
An Award may consist of one or more such securities or benefits in any combination or alternative.

          (b) Designation of Award. Each Award shall be designated in the Award Agreement. In
the case of an Option, the Option shall be designated as either an Incentive Stock Option or a
Non-Qualified Stock Option. However, notwithstanding such designation, to the extent that the
aggregate Fair Market Value of Shares subject to Options designated as Incentive Stock Options
which become exercisable for the first time by a Grantee during any calendar year (under all plans
of the Company or any Parent or Subsidiary of the Company) exceeds $100,000, such excess Options,
to the extent of the Shares covered thereby in excess of the foregoing limitation, shall be treated
as Non-Qualified Stock Options. For this purpose, Incentive Stock Options shall be taken into
account in the order in which they were granted, and the Fair Market Value of the Shares shall be
determined as of the grant date of the relevant Option with respect to which such Shares are
granted.

          (c) Conditions of Award. Subject to the terms of the Plan, the Administrator shall
determine the provisions, terms, and conditions of each Award including, but not limited to, the
Award vesting schedule, repurchase provisions, rights of first refusal, forfeiture provisions, form
of payment (cash, Shares, or other consideration) upon settlement of the Award, payment
contingencies, and satisfaction of any performance criteria. The performance criteria established
by the Administrator may be based on any one of, or combination of, increase in share price,
earnings per share, total stockholder return, return on equity, return on assets, return on
investment, net operating income, cash flow, revenue, economic value added, personal management
objectives, or other measure of performance selected by the Administrator. Partial achievement of
the specified criteria may result in a payment or vesting corresponding to the degree of
achievement as specified in the Award Agreement.

          (d) Acquisitions and Other Transactions. The Administrator may issue Awards under the
Plan in settlement, assumption or substitution for, outstanding awards or obligations to grant
future awards in connection with the Company or a Related Entity acquiring another entity, an
interest in another entity or an additional interest in a Related Entity whether by merger, stock
purchase, asset purchase or other form of transaction.

 

 

          (e) Deferral of Award Payment. The Administrator may establish one or more programs
under the Plan to permit selected Grantees the opportunity to elect to defer receipt of
consideration upon exercise of an Award, satisfaction of performance criteria, or other event that
absent the election would entitle the Grantee to payment or receipt of Shares or other
consideration under an Award (but only to the extent that such deferral programs would not result
in an accounting compensation charge unless otherwise determined by the Administrator). The
Administrator may establish the election procedures, the timing of such elections, the mechanisms
for payments of, and accrual of interest or other earnings, if any, on amounts, Shares or other
consideration so deferred, and such other terms, conditions, rules and procedures that the
Administrator deems advisable for the administration of any such deferral program.

          (f) Separate Programs. The Administrator may establish one or more separate programs
under the Plan for the purpose of issuing particular forms of Awards to one or more classes of
Grantees on such terms and conditions as determined by the Administrator from time to time.

          (g) Individual Award Limit. The maximum number of Shares with respect to which Options
may be granted to any Grantee in any fiscal year of the Company shall be seven hundred fifty
thousand (750,000) Shares. In connection with a Grantee’s commencement of Continuous Service, the
Grantee may be granted Options for up to an additional seven hundred fifty thousand (750,000)
Shares, which shall not count against the limit set forth in the previous sentence. The foregoing
limitations shall be adjusted proportionately in connection with any change in the Company’s
capitalization pursuant to Section 10, below. To the extent required by Section 162(m) of the Code
or the regulations thereunder, in applying the foregoing limitation with respect to a Grantee, if
any Option is canceled, the canceled Option shall continue to count against the maximum number of
Shares with respect to which Options may be granted to the Grantee. For this purpose, the repricing
of an Option shall be treated as the cancellation of the existing Option and the grant of a new
Option.

          (h) Early Exercise. The Award Agreement may, but need not, include a provision whereby
the Grantee may elect at any time while an Employee, Director or Consultant to exercise any part or
all of the Award prior to full vesting of the Award. Any unvested Shares received pursuant to such
exercise may be subject to a repurchase right in favor of the Company or a Related Entity or to any
other restriction the Administrator determines to be appropriate.

          (i) Term of Award. The term of each Award shall be the term stated in the Award
Agreement, provided, however, that the term of any Award shall be no more than seven (7) years from
the date of grant thereof. However, in the case of an Incentive Stock Option granted to a Grantee
who, at the time the Option is granted, owns stock representing more than ten percent (10%) of the
voting power of all classes of stock of the Company or any Parent or Subsidiary of the Company, the
term of the Incentive Stock Option shall be five (5) years from the date of grant thereof or such
shorter term as may be provided in the Award Agreement.

          (j) Transferability of Awards. Incentive Stock Options may not be sold, pledged,
assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws
of descent or distribution and may be exercised, during the lifetime of the Grantee, only by the
Grantee; provided, however, that the Grantee may designate a beneficiary of the Grantee’s Incentive
Stock Option in the event of the Grantee’s death on a beneficiary designation form provided by the

 

 

Administrator. Other Awards shall be transferred by will and by the laws of descent and
distribution, and during the lifetime of the Grantee, by gift and/or pursuant to a domestic
relations order to members of the Grantee’s Immediate Family to the extent and in the manner
determined by the Administrator.

          (k) Time of Granting Awards. The date of grant of an Award shall for all purposes be
the date on which the Administrator makes the determination to grant such Award, or such other date
as is determined by the Administrator. Notice of the grant determination shall be given to each
Employee, Director or Consultant to whom an Award is so granted within a reasonable time after the
date of such grant.

     7. Award Exercise or Purchase Price, Consideration, and Taxes.

          (a) Exercise or Purchase Price. The exercise or purchase price, if any, for an Award
shall be as follows:

               (i) In the case of an Incentive Stock Option:

                    (A) granted to an Employee who, at the time of the grant of such Incentive Stock Option owns
stock representing more than ten percent (10%) of the voting power of all classes of stock of the
Company or any Parent or Subsidiary of the Company, the per Share exercise price shall be not less
than one hundred ten percent (110%) of the Fair Market Value per Share on the date of grant; or

                    (B) granted to any Employee other than an Employee described in the preceding paragraph, the
per Share exercise price shall be not less than one hundred percent (100%) of the Fair Market Value
per Share on the date of grant.

               (ii) In the case of a Non-Qualified Stock Option, the per Share exercise price shall be
not less than one-hundred percent (100%) of the Fair Market Value per Share on the date of grant.

               (iii) In the case of Awards intended to qualify as Performance-Based Compensation, the
exercise or purchase price, if any, shall be not less than one hundred percent (100%) of the Fair
Market Value per Share on the date of grant.

               (iv) In the case of other Awards, such price as is determined by the Administrator.

               (v) Notwithstanding the foregoing provisions of this Section 7(a), in the case of an
Award issued pursuant to Section 6(d), above, the exercise or purchase price for the Award shall be
determined in accordance with the provisions of the relevant instrument evidencing the agreement to
issue such Award.

          (b) Consideration. Subject to Applicable Laws, the consideration to be paid for the
Shares to be issued upon exercise or purchase

 

 

of an Award including the method of payment, shall be determined by the Administrator (and, in the
case of an Incentive Stock Option, shall be determined at the time of grant). In addition to any
other types of consideration the Administrator may determine, the Administrator is authorized to
accept as consideration for Shares issued under the Plan the following, provided that the portion
of the consideration equal to the par value of the Shares must be paid in cash or other legal
consideration permitted by the Delaware General Corporation Law:

               (i) cash or check in U.S. dollars;

               (ii) surrender of Shares or delivery of a properly executed form of attestation of
ownership of Shares as the Administrator may require (including withholding of Shares otherwise
deliverable upon exercise of the Award) which have a Fair Market Value on the date of surrender or
attestation equal to the aggregate exercise price of the Shares as to which said Award shall be
exercised (but only to the extent that such exercise of the Award would not result in an accounting
compensation charge with respect to the Shares used to pay the exercise price unless otherwise
determined by the Administrator);

               (iii) with respect to Options, payment through a broker-dealer sale and remittance
procedure pursuant to which the Grantee (A) shall provide written instructions to a Company
designated brokerage firm to effect the immediate sale of some or all of the purchased Shares and
remit to the Company, out of the sale proceeds available on the settlement date, sufficient funds
to cover the aggregate exercise price payable for the purchased Shares and (B) shall provide
written directives to the Company to deliver the certificates for the purchased Shares directly to
such brokerage firm in order to complete the sale transaction; or

               (iv) any combination of the foregoing methods of payment.

          (c) Taxes. No Shares shall be delivered under the Plan to any Grantee or other person
until such Grantee or other person has made arrangements acceptable to the Administrator for the
satisfaction of any foreign, federal, state, or local income and employment tax withholding
obligations, including, without limitation, obligations incident to the receipt of Shares or the
disqualifying disposition of Shares received on exercise of an Incentive Stock Option. Upon
exercise of an Award, the Company shall withhold or collect from Grantee an amount sufficient to
satisfy such tax obligations.

     8. Exercise of Award.

          (a) Procedure for Exercise; Rights as a Stockholder.

               (i) Any Award granted hereunder shall be exercisable at such times and under such
conditions as determined by the Administrator under the terms of the Plan and specified in the
Award Agreement; provided, however, that no Award granted to an Employee, except for Restricted
Stock or an Award granted under an Award Agreement described in Section 6(h), shall be exercisable
prior to the first anniversary of the grant date.

 

 

               (ii) An Award shall be deemed to be exercised when written notice (including written
notice provided via electronic transmission) of such exercise has been given to the Company in
accordance with the terms of the Award by the person entitled to exercise the Award and full
payment for the Shares with respect to which the Award is exercised, including, To the extent
selected, use of the broker-dealer sale and remittance procedure to pay the purchase price as
provided in Section 7(b)(iii). Until the issuance (as evidenced by the appropriate entry on the
books of the Company or of a duly authorized transfer agent of the Company) of the stock
certificate evidencing such Shares, no right to vote or receive dividends or any other rights as a
stockholder shall exist with respect to Shares subject to an Award, notwithstanding the exercise of
an Option or other Award. The Company shall issue (or cause to be issued) such stock certificate
promptly upon exercise of the Award. No adjustment will be made for a dividend or other right for
which the record date is prior to the date the stock certificate is issued, except as provided in
the Award Agreement or Section 10, below.

          (b) Exercise of Award Following Termination of Continuous Service.

               (i) An Award may not be exercised after the termination date of such Award set forth in
the Award Agreement and may be exercised following the termination of a Grantee’s Continuous
Service only to the extent provided in the Award Agreement.

               (ii) Where the Award Agreement permits a Grantee to exercise an Award following the
termination of the Grantee’s Continuous Service for a specified period, the Award shall terminate
to the extent not exercised on the last day of the specified period or the last day of the original
term of the Award, whichever occurs first.

               (iii) Any Award designated as an Incentive Stock Option to the extent not exercised within
the time permitted by law for the exercise of Incentive Stock Options following the termination of
a Grantee’s Continuous Service shall convert automatically to a Non-Qualified Stock Option and
thereafter shall be exercisable as such to the extent exercisable by its terms for the period
specified in the Award Agreement.

     9. Conditions Upon Issuance of Shares.

          (a) Shares shall not be issued pursuant to the exercise of an Award unless the exercise of
such Award and the issuance and delivery of such Shares pursuant thereto shall comply with all
Applicable Laws, and shall be further subject to the approval of counsel for the Company with
respect to such compliance.

          (b) As a condition to the exercise of an Award, the Company may require the person exercising
such Award 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 Applicable
Laws.

     10. Adjustments Upon Changes in Capitalization. Subject to any required action by
the stockholders of the Company, the number of Shares covered by each outstanding Award, and the
number of Shares which have been authorized for issuance under the Plan but as to which no Awards

 

 

have yet been granted or which have been returned to the Plan, the exercise or purchase price of
each such outstanding Award, the maximum number of Shares with respect to which Options may be
granted to any Grantee in any fiscal year of the Company, as well as any other terms that the
Administrator determines require adjustment shall be proportionately adjusted for (i) any increase
or decrease in the number of issued Shares resulting from a stock split, reverse stock split, stock
dividend, combination or reclassification of the Shares, or similar transaction affecting the
Shares, (ii) any other increase or decrease in the number of issued Shares effected without receipt
of consideration by the Company, or (iii) as the Administrator may determine in its discretion, any
other transaction with respect to Common Stock including a corporate merger, consolidation,
acquisition of property or stock, separation (including a spin-off or other distribution of stock
or property), reorganization, liquidation (whether partial or complete) or any similar transaction;
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 and its determination shall be final, binding and conclusive. Except as the
Administrator determines, 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 hereof
shall be made with respect to, the number or price of Shares subject to an Award.

     11. Corporate Transactions/Changes in Control.

     Termination of Award to Extent Not Assumed.

               (i) Corporate Transaction. Effective upon the consummation of a Corporate
Transaction, all outstanding Awards under the Plan shall terminate. However, all such Awards shall
not terminate to the extent they are Assumed in connection with the Corporate Transaction.

     Acceleration of Award Upon Corporate Transaction/Change in Control.

               (ii) Corporate Transaction. Except as provided otherwise in an individual Award
Agreement, in the event of a Corporate Transaction, for the portion of each Award that is neither
Assumed nor Replaced, such portion of the Award shall automatically become fully vested and
exercisable and be released from any repurchase or forfeiture rights (other than repurchase rights
exercisable at fair market value) for all of the Shares at the time represented by such portion of
the Award, immediately prior to the specified effective date of such Corporate Transaction.

               (iii) Change in Control. The Administrator shall have the authority, exercisable
either in advance of any actual or anticipated Change in Control or at the time of an actual Change
in Control and exercisable at the time of the grant of an Award under the Plan or any time while an
Award remains outstanding, to provide for the full or partial automatic vesting and exercisability
of one or more outstanding unvested Awards under the Plan and the release from restrictions on
transfer and repurchase or forfeiture rights of such Awards in connection with a Change in Control,
on such terms and conditions as the Administrator may specify. The Administrator also shall have
the authority to condition any such Award vesting and exercisability or release from such
limitations upon the subsequent termination of the Continuous Service of the Grantee within a
specified period following the effective date of the Change in Control. The Administrator may
provide that any Awards so vested or released from such limitations in connection with a Change in Control, shall remain fully
exercisable until the expiration or sooner termination of the Award.

 

 

     Effect of Acceleration on Incentive Stock Options. The portion of any Incentive
Stock Option accelerated under this Section 11 in connection with a Corporate Transaction or Change
in Control shall remain exercisable as an Incentive Stock Option under the Code only to the extent
the $100,000 dollar limitation of Section 422(d) of the Code is not exceeded. To the extent such
dollar limitation is exceeded, the accelerated excess portion of such Option shall be exercisable
as a Non-Qualified Stock Option.

     12. Effective Date and 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 shall continue in effect for a term of seven (7) years unless sooner terminated. Subject to
Section 17, below, and Applicable Laws, Awards may be granted under the Plan upon its becoming
effective.

     13. Amendment, Suspension or Termination of the Plan.

          (a) The Board may at any time amend, suspend or terminate the Plan. To the extent necessary to
comply with Applicable Laws, the Company shall obtain stockholder approval of any Plan amendment in
such a manner and to such a degree as required. In addition, any amendment to this Section 13(a) or
Section 4(b)(vi) shall also require stockholder approval.

          (b) No Award may be granted during any suspension of the Plan or after termination of the
Plan.

          (c) No amendment, suspension or termination of the Plan (including termination of the Plan
under Section 12, above) shall adversely affect any rights under Awards already granted to a
Grantee, unless consented to by the Grantee.

     14. Reservation of Shares.

          (a) The Company, during the term of the Plan, will at all times reserve and keep available
such number of Shares as shall be sufficient to satisfy the requirements of the Plan.

          (b) The inability of the Company to obtain authority from any regulatory body having
jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful
issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of
the failure to issue or sell such Shares as to which such requisite authority shall not have been
obtained.

     15. No Effect on Terms of Employment/Consulting Relationship. The Plan shall not
confer upon any Grantee any right with respect to the Grantee’s Continuous Service, nor shall it
interfere in any way with his or her right or the right of the Company or any Related Entity to
terminate the Grantee’s Continuous Service at any time, with or without Cause, and with or without
notice. The ability of the Company or any Related Entity to terminate the employment of a Grantee
who is employed at will is in no way affected by its determination that the Grantee’s Continuous
Service has been terminated for Cause for the purposes of this Plan.

 

 

     16. No Effect on Retirement and Other Benefit Plans. Except as specifically
provided in a retirement or other benefit plan of the Company or a Related Entity, Awards shall not
be deemed
compensation for purposes of computing benefits or contributions under any retirement plan of the
Company or a Related Entity, and shall not affect any benefits under any other benefit plan of any
kind or any benefit plan subsequently instituted under which the availability or amount of benefits
is related to level of compensation. The Plan is not a “Retirement Plan” or “Welfare Plan” under
the Employee Retirement Income Security Act of 1974, as amended.

     17. Stockholder Approval. The grant of Incentive Stock Options under the Plan shall
be subject to approval by the stockholders of the Company within twelve (12) months before or after
the date the Plan is adopted excluding Incentive Stock Options issued in substitution for
outstanding Incentive Stock Options pursuant to Section 424(a) of the Code. Such stockholder
approval shall be obtained in the degree and manner required under Applicable Laws. The
Administrator may grant Incentive Stock Options under the Plan prior to approval by the
stockholders, but until such approval is obtained, no such Incentive Stock Option shall be
exercisable. In the event that stockholder approval is not obtained within the twelve (12) month
period provided above, all Incentive Stock Options previously granted under the Plan shall be
exercisable as Non-Qualified Stock Options.

 

 

STRATEX NETWORKS, INC.

2002 NON-EMPLOYEE DIRECTOR OPTION PROGRAM

ARTICLE I

ESTABLISHMENT AND PURPOSE OF THE PROGRAM

1.01 ESTABLISHMENT OF PROGRAM

The Stratex Networks, Inc. 2002 Non-Employee Director Option Program (the “Program”) is adopted
pursuant to the Stratex Networks, Inc. 2002 Stock Incentive Plan (the “Plan”) and, in addition to
the terms and conditions set forth below, is subject to the provisions of the Plan.

1.02 PURPOSE OF PROGRAM

The purpose of the Program is to enhance the ability of the Company to attract and retain directors
who are not Employees (“Non-Employee Directors”) through a program of automatic Option grants.

1.03 EFFECTIVE DATE OF THE PROGRAM

The Program is effective as of the date of 2002 Annual Stockholders Meeting, such effectiveness
conditioned upon approval of the Plan by the Company’s stockholders at such meeting.

ARTICLE II

DEFINITIONS

Capitalized terms in this Program, unless otherwise defined herein, have the meaning given to them
in the Plan.

ARTICLE III

OPTION TERMS

3.01 DATE OF GRANT AND NUMBER OF SHARES

As of the effective date of the Plan, a Non-Qualified Stock Option to purchase thirty thousand
(30,000) Shares shall be granted (the “Initial Grant”) to each Non-Employee Director newly elected
or appointed to the Board upon the date each such Non-Employee Director first becomes a
Non-Employee Director. In addition, immediately following each annual meeting of the Company’s
stockholders commencing with the 2002 Annual Stockholders Meeting, each Non-Employee Director who
continues as a Non-Employee Director following such annual meeting shall be granted a Non-Qualified
Stock Option to purchase ten thousand (10,000) Shares (a “Subsequent Grant”); provided that no
Subsequent Grant shall be made to any Non-Employee Director who has not served as a director of the
Company for at least three (3) years as of the time of such annual meeting. Each such Subsequent
Grant shall be made on the date of the annual stockholders’ meeting in question. In the event of a
transaction described in Section 10 of the Plan, the Administrator, in its sole discretion, may
determine whether to adjust the number of Shares to be subject to the automatic issuance of Initial
Grants and Subsequent Grants that occur on or after such a transaction. No such adjustment to new

 

 

Initial Grants and Subsequent Grants shall be made in the absence of an affirmative determination
by the Administrator. However, the number of Shares underlying any Initial Grants and Subsequent
Grants outstanding on the date of a transaction described in Section 10 of the Plan shall be
subject to adjustment in accordance with Section 10 of the Plan.

3.02 VESTING

Each Initial Grant under the Program shall be immediately exercisable as to all of the Shares
subject to the Option. However, the Shares purchased under such Initial Grant shall be subject to
repurchase by the Company, at the same exercise price paid per Share by the Non-Employee Director,
upon the Non-Employee Director’s cessation of Continuous Service prior to vesting in those Shares.
Each Initial Grant shall vest as to one-third (1/3) of the Shares subject to the Option twelve (12)
months after the date of grant and an additional one-third (1/3) of the Shares subject to the
Option shall vest on each yearly anniversary of the date of grant thereafter, such that the Initial
Grant will be fully vested three (3) years after its date of grant.

For purposes this Program, the term “vest” shall mean, with respect to any Shares, that such Shares
are no longer subject to repurchase by the Company; provided, however, that such Shares shall
remain subject to other restrictions on transfer set forth in the underlying Award Agreement or in
the Plan. Shares that have not vested are deemed “Restricted Shares.” If the Non-Employee Director
becomes vested in a fraction of a Restricted Share, such Restricted Share shall not vest until the
Non-Employee Director becomes vested in the entire Share. Notwithstanding the foregoing, any
Restricted Shares purchased under this Program will be subject to the provisions of the underlying
Award Agreement and Section 11 of the Plan relating to the release of repurchase and forfeiture
provisions in the event of a Corporate Transaction or Change of Control.

Each Subsequent Grant under the Program shall be fully vested and exercisable as to all Shares
subject to the Option on the date of grant. Subsequent Grants are not subject to repurchase by the
Company.

3.03 EXERCISE PRICE

The exercise price per Share of Common Stock of each Option granted under the Program shall be one
hundred percent (100%) of the Fair Market Value per Share on the date of grant.

3.04 TERM

Each Option granted under the Program shall have a maximum term of five (5) years measured from the
date of grant.

3.05 CORPORATE TRANSACTIONS/CHANGES IN CONTROL

(a) In the event of a Corporate Transaction, each Option which is at the time outstanding
under the Program automatically shall become fully vested and exercisable immediately prior to the
effective date of such Corporate Transaction. Effective upon the consummation of the Corporate
Transaction, all outstanding Options under the Program shall terminate. However, such Options shall
not terminate if the Options are Assumed by the successor corporation or Parent thereof in connection with the
Corporate Transaction.

 

 

(b) In the event of a Change in Control (other than a Change in Control which also is a
Corporate Transaction), each Option which is at the time outstanding under the Program
automatically shall become fully vested and exercisable immediately prior to the specified
effective date of such Change in Control. Each such Option shall remain so exercisable until the
expiration or sooner termination of the applicable Option term.

3.05 OTHER TERMS

The Administrator shall determine the remaining terms and conditions of the Options awarded under
the Program.

 

 

STRATEX NETWORKS, INC.

2002 NON-EMPLOYEE DIRECTOR STOCK FEE PROGRAM

ARTICLE I

ESTABLISHMENT AND PURPOSE OF THE PROGRAM

1.01 ESTABLISHMENT OF PROGRAM

The Stratex Networks, Inc. 2002 Non-Employee Director Stock Fee Program (the “Program”) is adopted
pursuant to the Stratex Networks, Inc. 2002 Stock Incentive Plan (the “Plan”) and, in addition to
the terms and conditions set forth below, is subject to the provisions of the Plan.

1.02 PURPOSE OF PROGRAM

The purpose of the Program is to enhance the ability of the Company to attract and retain directors
who are not Employees (“Non-Employee Directors”) through a program of receiving Shares of the
Company in lieu of annual retainer and meeting fees.

1.03 EFFECTIVE DATE OF THE PROGRAM

The Program is effective as of the date of 2002 Annual Stockholders Meeting, such effectiveness
conditioned upon approval of the Plan by the Company’s stockholders at such meeting.

ARTICLE II

DEFINITIONS

Capitalized terms in this Program, unless otherwise defined herein, have the meaning given to them
in the Plan.

ARTICLE III

STOCK FEE PROGRAM TERMS

3.01 ELIGIBILITY

As of the effective date of the Plan, each Non-Employee Director shall be eligible to elect to
apply all or any portion of the annual retainer fee and meeting fees otherwise payable to such
individual in cash to the acquisition of Shares under the Plan pursuant to the terms and conditions
of this Program.

3.02 ELECTION PROCEDURE

(a) The Non-Employee Director must make the stock-in-lieu-of-fee election prior to the
start of the calendar year for which the election is to be effective. Subject to the last sentence
of this Section 3.02(a), the first calendar year for which any such election may be filed shall be
the 2003 calendar year. The election, once filed, shall be irrevocable. The election for any
upcoming calendar year may be filed at any time prior to the start of that year, but in no event
later than December 31 of the

 

 

immediately preceding calendar year. The Non-Employee Director may file a standing election to be
in effect for two (2) or more consecutive calendar years or to remain in effect indefinitely until
revoked by written instrument filed with the Administrator at least thirty (30) days prior to the
start of the first calendar year for which such standing election is no longer to remain in effect.
Any standing election filed under the Stock Fee Program of the DMC Stratex Networks, Inc. 1994
Stock Incentive Plan or the DMC Stratex Networks, Inc. 1999 Stock Incentive Plan shall be deemed a
standing election under this Program without any further action by the Non-Employee Director in
order to be administered in accordance with the terms of such previously filed standing election.

(b) The election must be filed with the Administrator on the appropriate form provided by the
Administrator for this purpose. On the election form, the Non-Employee Director must indicate the
percentage or dollar amount of his or her annual retainer fee and/or his or her meeting fees to be
applied to the acquisition of Shares.

3.03 ISSUE DATE FOR ANNUAL RETAINER FEE SHARES

On the first trading day in January of the calendar year for which the election is effective, the
portion of the annual retainer fee subject to such election shall automatically be applied to the
acquisition of Shares by dividing the elected dollar amount by the Fair Market Value per Share of
Common Stock on that trading day. The number of issuable Shares shall be rounded down to the next
whole Share, and the issued Shares shall be held in escrow by the Secretary of the Company as
“Restricted Shares” until the Non-Employee Director fully vests in such Restricted Shares. Such
Restricted Shares shall not be assignable or transferable while they remain unvested, but the
Non-Employee Director shall have full stockholder rights, including voting, dividend and
liquidation rights, with respect to all Restricted Shares held in escrow on his or her behalf.

3.04 VESTING OF ANNUAL RETAINER FEE SHARES

Upon completion of each calendar month of Continuous Service during the year for which the election
applicable to the annual retainer fee is in effect, the Non-Employee Director shall vest in
one-twelfth (1/12) of the Restricted Shares, and the stock certificate for those Shares shall be
released from escrow. Notwithstanding the provisions of the Plan, immediate vesting in all
Restricted Shares shall occur in the event (i) the Non-Employee Director should die or incurs a
Disability during his or her Continuous Service or (ii) there should occur a Corporate Transaction
or Change in Control while such individual remains in Continuous Service. Should such individual
cease Continuous Service prior to vesting in one or more monthly installments of the Restricted
Shares, then any Restricted Shares that remain unvested shall be canceled by the Company, and the
Non-Employee Director shall not be entitled to any cash payment or other consideration from the
Company with respect to the canceled Restricted Shares and shall have no further stockholder rights
with respect to such Restricted Shares. For purposes this Program, the term “vest” shall mean,
with respect to any Restricted Shares, that such Restricted Shares are no longer subject to
forfeiture to the Company or restrictions on assignability or transfer. If the Non-Employee
Director becomes vested in a fraction of a Restricted Share, such Restricted Share shall not vest
until the Non-Employee Director becomes vested
in the entire Share.

 

 

3.05 ISSUE DATE FOR MEETING FEE SHARES

On the first trading day following any meeting in a calendar year for which the election is
effective, the portion of the meeting fee subject to such election shall automatically be applied
to the acquisition of Shares by dividing the elected dollar amount by the Fair Market Value per
Share of Common Stock on that trading day. The number of issuable Shares shall be rounded down to
the next whole Share, and the Shares shall be issued as soon as practicable to the Non-Employee
Director.

3.06 OTHER TERMS

The Administrator shall determine the remaining terms and conditions of the Program.

 

 

STRATEX NETWORKS, INC. 2002 STOCK INCENTIVE PLAN

2002 NON-EMPLOYEE DIRECTOR OPTION PROGRAM

NOTICE OF NON-QUALIFIED STOCK OPTION AWARD

[PER PROGRAM, SINGLE TRIGGER ACCELERATION FOR NON-EMPLOYEE DIRECTORS — REMOVE THIS]

	 	 	 	 	 	 	 
	 

	 	Grantee’s Name and Address:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

     You have been granted an option to purchase shares of Common Stock, subject to the terms and
conditions of this Notice of Stock Option Award (the “Notice”), the Stratex Networks, Inc. 2002
Stock Incentive Plan (the “Plan”), and the Stratex Networks, Inc. 2002 Non-Employee Director Option
Program (the “Program”), as amended from time to time, and the Non-Qualified Stock Option Award
Agreement (the “Option Agreement”) attached hereto, as follows. Unless otherwise defined herein,
the terms defined in the Plan and the Program shall have the same defined meanings in this Notice.

	 	 	 	 	 
	Award Number
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	Date of Award
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	Vesting Commencement Date
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	Exercise Price per Share
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	Total Number of Shares subject to the Option (the “Share”)
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	Total Exercise Price
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	Type of Option:
	 	
Non-Qualified Stock Option
	 
	 	 	 	 
	Expiration Date:
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	Post-Termination Exercise Period:
	 	
Three (3) Months

     Vesting Schedule:

     [FOR INITIAL GRANTS] <THIS OPTION IS IMMEDIATELY EXERCISABLE, ALTHOUGH THE SHARES ISSUED
UPON EXERCISE OF THE OPTION WILL BE SUBJECT TO THE RESTRICTIONS ON TRANSFER AND A RIGHT OF
REPURCHASE AT THE EXERCISE PRICE PER SHARE, IN FAVOR OF THE COMPANY, AS DESCRIBED IN SECTION

 

 

10 OF THE OPTION AGREEMENT (THE “REPURCHASE RIGHT”). FOR PURPOSES OF THIS NOTICE AND THE OPTION
AGREEMENT, THE TERM “VEST” SHALL MEAN, WITH RESPECT TO ANY SHARES, THAT SUCH SHARES (WHETHER
SUBJECT TO THE OPTION OR ACQUIRED UPON EXERCISE OF THE OPTION) ARE NO LONGER SUBJECT TO THE
REPURCHASE RIGHT AS TO UNVESTED SHARES, PROVIDED, HOWEVER, THAT SUCH SHARES SHALL REMAIN SUBJECT TO
OTHER RESTRICTIONS ON TRANSFER SET FORTH IN THE PLAN, THE PROGRAM AND THE OPTION AGREEMENT. IF THE
GRANTEE BECOMES VESTED IN A FRACTION OF A SHARE, SUCH SHARE SHALL NOT VEST UNTIL THE GRANTEE
BECOMES VESTED IN THE ENTIRE SHARE. NOTWITHSTANDING THE FOREGOING, THE SHARES SUBJECT TO THIS
NOTICE WILL BE RELEASED FROM THE REPURCHASE RIGHT IN THE EVENT OF A CORPORATE TRANSACTION OR A
CHANGE IN CONTROL, IN ACCORDANCE WITH SECTION 3.05 OF THE PROGRAM. PROVIDED THAT GRANTEE’S
CONTINUOUS SERVICE IS NOT TERMINATED AND SUBJECT TO THE OTHER LIMITATIONS SET FORTH IN THIS NOTICE,
THE PLAN, THE PROGRAM AND THE OPTION AGREEMENT, THE REPURCHASE RIGHT AS TO UNVESTED SHARES SHALL
LAPSE IN ACCORDANCE WITH THE FOLLOWING SCHEDULE:

     ONE-THIRD (1/3) OF THE SHARES OF COMMON STOCK SUBJECT TO THE OPTION SHALL VEST TWELVE (12)
MONTHS AFTER THE VESTING COMMENCEMENT DATE, AND AN ADDITIONAL ONE-THIRD (1/3) OF THE SHARES OF
COMMON STOCK SUBJECT TO THE OPTION SHALL VEST ON EACH YEARLY ANNIVERSARY OF THE VESTING
COMMENCEMENT DATE THEREAFTER.>

     [FOR SUBSEQUENT GRANTS] <SUBJECT TO GRANTEE’S CONTINUOUS SERVICE AND OTHER LIMITATIONS SET
FORTH IN THIS NOTICE, THE PLAN, THE PROGRAM AND THE OPTION AGREEMENT, THE OPTION MAY BE EXERCISED,
IN WHOLE OR IN PART, IN ACCORDANCE WITH THE FOLLOWING SCHEDULE:

     100% OF THE SHARES SUBJECT TO THE OPTION SHALL BE FULLY VESTED AND EXERCISABLE ON THE VESTING
COMMENCEMENT DATE AND SHALL NOT SUBJECT TO REPURCHASE BY THE COMPANY AS DESCRIBED IN SECTION 10 OF
THE OPTION AGREEMENT.>

     During any authorized leave of absence, the vesting of the Option as provided in this schedule
shall be suspended after the leave of absence exceeds a period of ninety (90) days. Vesting of the
Option shall resume upon the Grantee’s termination of the leave of absence and return to service to
the Company or a Related Entity. The Vesting Schedule of the Option shall be extended by the length
of the suspension.

 

 

     IN WITNESS WHEREOF, the Company and the Grantee have executed this Notice and agree that the
Option is to be governed by the terms and conditions of this Notice, the Plan, the Program and the
Option Agreement.

	 	 	 	 	 	 	 
	 	 	Stratex Networks, Inc.,

a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

THE GRANTEE ACKNOWLEDGES AND AGREES THAT THE SHARES SUBJECT TO THE OPTION SHALL VEST, IF AT ALL,
ONLY DURING THE PERIOD OF THE GRANTEE’S CONTINUOUS SERVICE (NOT THROUGH THE ACT OF BEING GRANTED
THE OPTION OR ACQUIRING SHARES HEREUNDER).

     The Grantee acknowledges receipt of a copy of the Plan, the Program and the Option Agreement,
and represents that he or she is familiar with the terms and provisions thereof, and hereby accepts
the Option subject to all of the terms and provisions hereof and thereof. The Grantee has reviewed
this Notice, the Plan, the Program and the Option Agreement in their entirety, has had an
opportunity to obtain the advice of counsel prior to executing this Notice, and fully understands
all provisions of this Notice, the Plan, the Program and the Option Agreement. The Grantee hereby
agrees that all disputes arising out of or relating to this Notice, the Plan, the Program and the
Option Agreement shall be resolved in accordance with Section 20 of the Option Agreement. The
Grantee further agrees to notify the Company upon any change in the residence address indicated in
this Notice.

	 	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	 	 	Signed:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Grantee

 

 

AWARD NUMBER:                     

STRATEX NETWORKS, INC. 2002 STOCK INCENTIVE PLAN

2002 NON-EMPLOYEE DIRECTOR OPTION PROGRAM

NON-QUALIFIED STOCK OPTION AWARD AGREEMENT

     1. Grant of Option. Stratex Networks, Inc., a Delaware corporation (the
“Company”), hereby grants to the Grantee (the “Grantee”) named in the Notice of Non-Qualified Stock
Option Award (the “Notice”), an option (the “Option”) to purchase the Total Number of Shares of
Common Stock subject to the Option (the “Shares”) set forth in the Notice, at the Exercise Price
per Share set forth in the Notice (the “Exercise Price”) subject to the terms and provisions of the
Notice, this Non-Qualified Stock Option Award Agreement (the “Option Agreement”), the Company’s
2002 Stock Incentive Plan (the “Plan”), and the Company’s 2002 Non-Employee Director Option Program
(the “Program”), as amended from time to time, which are incorporated herein by reference. Unless
otherwise defined herein, the terms defined in the Plan and the Program shall have the same defined
meanings in this Option Agreement.

     The Option is intended to qualify as a Non-Qualified Stock Option and not as an Incentive
Stock Option as defined in Section 422 of the Code.

     2. Exercise of Option.

          (a) Right to Exercise. The Option shall be exercisable during its term in
accordance with the Vesting Schedule set out in the Notice and with the applicable provisions of
the Plan and this Option Agreement by delivery of an exercise notice (a form of which is attached
as Exhibit A) or by other such procedure as specified from time to time by the Administrator. The
Option shall be subject to the provisions of Section 3.05 of the Program relating to the
exercisability or termination of the Option in the event of a Corporate Transaction or a Change in
Control. No partial exercise of the Option may be for less than the lesser of five percent (5%) of
the total number of Shares subject to the Option or the remaining number of Shares subject to the
Option. The Grantee shall be subject to reasonable limitations on the number of requested exercises
during any monthly or weekly period as determined by the Administrator. In no event shall the
Company issue fractional Shares.

          (b) Method of Exercise. The Option shall be exercisable only by delivery of an
exercise notice (attached as Exhibit A) or by such procedure as specified from time to time by the
Administrator which shall state the election to exercise the Option, the whole number of Shares in
respect of which the Option is being exercised, such other representations and agreements as to the
holder’s investment intent with respect to such Shares and such other provisions as may be required
by the Administrator. The exercise notice shall be signed by the Grantee and shall be delivered in
person, by certified mail, or by such other method (including electronic transmission) as
determined from time to time by the Administrator to the Company accompanied by payment of the
Exercise Price. The Option shall be deemed to be exercised upon receipt by the Company of such
written notice accompanied by the Exercise Price, which, to the extent selected, shall be deemed to
be satisfied by use of the broker-dealer sale and remittance procedure to pay the Exercise Price provided in
Section 3(d), below.

 

 

          (c) Taxes. No Shares will be delivered to the Grantee or other person pursuant to
the exercise of the Option until the Grantee or other person has made arrangements acceptable to
the Administrator for the satisfaction of applicable income and employment tax withholding
obligations, including, without limitation, such other tax obligations of the Grantee incident to
the receipt of Shares. Upon exercise of the Option, the Company or the Grantee’s employer may
offset or withhold (from any amount owed by the Company or the Grantee’s employer to the Grantee)
or collect from the Grantee or other person an amount sufficient to satisfy such tax obligations
and/or the employer’s withholding obligations.

     3. Method of Payment. Payment of the Exercise Price shall be made by any of the
following, or a combination thereof, at the election of the Grantee; provided, however, that such
exercise method does not then violate any Applicable Law and, provided further, that the portion of
the Exercise Price equal to the par value of the Shares must be paid in cash or other legal
consideration permitted by the Delaware General Corporation Law:

          (a) cash;

          (b) check;

          (c) surrender of Shares or delivery of a properly executed form of attestation of
ownership of Shares as the Administrator may require (including withholding of Shares otherwise
deliverable upon exercise of the Option) which have a Fair Market Value on the date of surrender or
attestation equal to the aggregate Exercise Price of the Shares as to which the Option is being
exercised (but only to the extent that such exercise of the Option would not result in an
accounting compensation charge with respect to the Shares used to pay the exercise price); or

          (d) payment through a broker-dealer sale and remittance procedure pursuant to which the
Grantee (i) shall provide written instructions to a Company designated brokerage firm to effect the
immediate sale of some or all of the purchased Shares and remit to the Company, out of the sale
proceeds available on the settlement date, sufficient funds to cover the aggregate exercise price
payable for the purchased Shares and (ii) shall provide written directives to the Company to
deliver the certificates for the purchased Shares directly to such brokerage firm in order to
complete the sale transaction.

     4. Restrictions on Exercise. The Option may not be exercised if the issuance of
the Shares subject to the Option upon such exercise would constitute a violation of any Applicable
Laws.

     5. Termination or Change of Continuous Service. In the event the Grantee’s
Continuous Service terminates, other than for Cause, the Grantee may, but only during the
Post-Termination Exercise Period, exercise the portion of the Option that was vested at the date of
such termination (the “Termination Date”). In the event of termination of the Grantee’s Continuous
Service for Cause, the Grantee’s right to exercise the Option shall, except as otherwise determined
by the Administrator, terminate concurrently with the termination of the Grantee’s Continuous
Service (also the

 

 

“Termination Date”). In no event shall the Option be exercised later than the Expiration Date set
forth in the Notice. In the event of the Grantee’s change in status from Employee, Director or
Consultant to any other status of Employee, Director or Consultant, the Option shall remain in
effect and, except to the extent otherwise determined by the Administrator, continue to vest.
Except as provided in Sections 6 and 7 below, to the extent that the Option was unvested on the
Termination Date, or if the Grantee does not exercise the vested portion of the Option within the
Post-Termination Exercise Period, the Option shall terminate.

     6. Disability of Grantee. In the event the Grantee’s Continuous Service
terminates as a result of his or her Disability, the Grantee may, but only within twelve (12)
months from the Termination Date (and in no event later than the Expiration Date), exercise the
portion of the Option that was vested on the Termination Date. To the extent that the Option was
unvested on the Termination Date, or if the Grantee does not exercise the vested portion of the
Option within the time specified herein, the Option shall terminate.

     7. Death of Grantee. In the event of the termination of the Grantee’s Continuous
Service as a result of his or her death, or in the event of the Grantee’s death during the
Post-Termination Exercise Period or during the twelve (12) month period following the Grantee’s
termination of Continuous Service as a result of his or her Disability, the Grantee’s estate, or a
person who acquired the right to exercise the Option by bequest or inheritance, may exercise the
portion of the Option that was vested at the date of termination, within twelve (12) months from
the date of death (but in no event later than the Expiration Date). To the extent that the Option
was unvested on the date of death, or if the vested portion of the Option is not exercised within
the time specified herein, the Option shall terminate.

     8. Transferability of Option. The Option may not be transferred in any manner
other than by will or by the laws of descent and distribution, provided, however, that the Option
may be transferred to members of the Grantee’s Immediate Family to the extent and in the manner
authorized by the Administrator. The terms of the Option shall be binding upon the executors,
administrators, heirs and successors of the Grantee.

     9. Term of Option. The Option may be exercised no later than the Expiration Date set
forth in the Notice or such earlier date as otherwise provided herein.

     10. Company’s Repurchase Right.

          (a) Grant of Repurchase Right. The Company is hereby granted the right (the
“Repurchase Right”), exercisable at any time during the ninety (90) day period following the
Termination Date, to repurchase all or any portion of the Shares that have not vested pursuant to
the terms of the Vesting Schedule purchased upon exercise of the Option (the “Share Repurchase
Period”).

          (b) Exercise of the Repurchase Right. The Repurchase Right shall be exercisable
by written notice delivered to the Grantee prior to the expiration of the Share Repurchase Period.
The notice shall indicate the number of Shares to be repurchased and the date on which the
repurchase is to be effected, such date to be not later than the last day of the Share Repurchase
Period. On the date on which the repurchase is to be effected, the Company and/or its assigns shall
pay to the Grantee in cash or cash equivalents (including the cancellation of any purchase-money
indebtedness) an amount equal

 

 

to the lower of the Exercise Price or Fair Market Value per Share for unvested Shares which are to
be repurchased from the Grantee. Upon such payment or deposit into escrow for the benefit of the
Grantee, the Company and/or its assigns shall become the legal and beneficial owner of the Shares
being repurchased and all rights and interest thereon or related thereto, and the Company shall
have the right to transfer to its own name or its assigns the number of Shares being repurchased,
without further action by the Grantee.

          (c) Assignment. Whenever the Company shall have the right to purchase Shares
under this Repurchase Right, the Company may designate and assign one or more employees, officers,
directors or shareholders of the Company or other persons or organizations, to exercise all or a
part of the Company’s Repurchase Right.

          (d) Termination of the Repurchase Right. The Repurchase Right shall terminate
with respect to any Shares for which it is not timely exercised.

          (e) Corporate Transaction/Change in Control. Notwithstanding the foregoing,
Shares subject to the Repurchase Right will be released from the Repurchase Right in the event of a
Corporate Transaction or a Change in Control, in accordance with Section 3.05 of the Program.

     11. Transfer Restrictions for Unvested Shares. The Shares sold to the Grantee
hereunder may not be sold, transferred by gift, pledged, hypothecated, or otherwise transferred or
disposed of by the Grantee prior to the date that the Shares become vested pursuant to the Vesting
Schedule set forth in the Notice. Any attempt to transfer Shares in violation of this Section 11
will be null and void and will be disregarded.

     12. Escrow of Stock. For purposes of facilitating the enforcement of the
provisions of the Repurchase Right, the Grantee agrees, immediately upon receipt of the
certificate(s) for the Shares, to deliver such certificate(s), together with an Assignment Separate
from Certificate in the form attached hereto as Exhibit B, executed in blank by the Grantee and the
Grantee’s spouse (if required for transfer) with respect to each such stock certificate, to the
Secretary or Assistant Secretary of the Company, or their designee, to hold in escrow for so long
as such Shares have not vested pursuant to the Vesting Schedule set forth in the Notice and are
subject to Company’s Repurchase Right, with the authority to take all such actions and to
effectuate all such transfers and/or releases as may be necessary or appropriate to accomplish the
objectives of this Option Agreement in accordance with the terms hereof. The Grantee hereby
acknowledges that the appointment of the Secretary or Assistant Secretary of the Company (or their
designee) as the escrow holder hereunder with the stated authorities is a material inducement to
the Company to make this Option Agreement and that such appointment is coupled with an interest and
is accordingly irrevocable. The Grantee agrees that such escrow holder shall not be liable to any
party hereto (or to any other party) for any actions or omissions unless such escrow holder is
grossly negligent relative thereto. The escrow holder may rely upon any letter, notice or other
document executed by any signature purported to be genuine and may resign at any time. Subject to
the provisions of any security agreement relating to Grantee’s purchase of the Shares, upon the
vesting of Shares and termination of the Company’s Repurchase Right as set forth in Section 10, the
escrow holder will, upon request, transmit to the Grantee the certificate evidencing such Shares.

 

 

     13. Additional Securities. Any securities or cash received (other than a regular
cash dividend) as the result of ownership of the Shares (the “Additional Securities”), including,
but not by way of limitation, warrants, options and securities received as a stock dividend or
stock split, or as a result of any transaction described in Section 10 of the Plan, shall be
subject to the same conditions and restrictions as the Shares with respect to which they were
issued, including, without limitation, the Vesting Schedule set forth in the Notice, and the
Repurchase Right and retained in escrow in the same manner as the Shares with respect to which they
relate. The Grantee shall be entitled to direct the Company to exercise any warrant or option
received as Additional Securities upon supplying the funds necessary to do so, in which event the
securities so purchased shall constitute Additional Securities, but the Grantee may not direct the
Company to sell any such warrant or option. If Additional Securities consist of a convertible
security, the Grantee may exercise any conversion right, and any securities so acquired shall
constitute Additional Securities. Appropriate adjustments to reflect the distribution of Additional
Securities shall be made to the price per share to be paid upon the exercise of the Repurchase
Right in order to reflect the effect of any such transaction upon the Company’s capital structure.
In the event of any change in certificates evidencing the Shares or the Additional Securities by
reason of any recapitalization, reorganization or other transaction that results in the creation of
Additional Securities, the escrow holder is authorized to deliver to the issuer the certificates
evidencing the Shares or the Additional Securities in exchange for the certificates of the
replacement securities.

     14. Distributions. Subject to Section 10(e) and Section 13, the Company shall
disburse to the Grantee all regular cash dividends with respect to the Shares and Additional
Securities (whether vested or not), less any applicable withholding obligations.

     15. Stop-Transfer Notices. In order to ensure compliance with the restrictions on
transfer set forth in this Option Agreement, the Notice, the Plan or the Program, the Company may
issue appropriate “stop transfer” instructions to its transfer agent, if any, and, if the Company
transfers its own securities, it may make appropriate notations to the same effect in its own
records.

     16. Refusal to Transfer. The Company shall not be required (i) to transfer on its
books any Shares that have been sold or otherwise transferred in violation of any of the provisions
of this Option Agreement or (ii) to treat as owner of such Shares or to accord the right to vote or
pay dividends to any purchaser or other transferee to whom such Shares shall have been so
transferred.

     17. Special Tax Election for Exercise of Option Subject to Forfeiture/Tax
Consequences. Set forth below is a brief summary as of the date of this Option Agreement of
some of the federal tax consequences of exercise of the Option and disposition of the Shares. THIS
SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. THE
GRANTEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THE OPTION OR DISPOSING OF THE SHARES.

          (a) Section 83 (b) Election For Exercise of Non-Qualified Stock Option Subject to
Vesting. If the Shares are acquired hereunder pursuant to the exercise of a Non-Qualified Stock
Option that has not vested pursuant to the Vesting Schedule set forth in the Notice, then the
Grantee understands that under Code Section 83, the excess of the Fair Market Value of the Shares
on the date any forfeiture restrictions applicable to the Shares lapse over the Exercise Price paid
for the Shares

 

 

will be reportable as ordinary income on the lapse date. For this purpose, the term “forfeiture
restrictions” includes the right of the Company to repurchase the Shares pursuant to the Repurchase
Right provided under Section 10. The Grantee understands that he/she may elect under Code Section
83(b) to be taxed at the time the Shares are acquired hereunder, rather than when and as the Shares
cease to be subject to the forfeiture restrictions. Such election (the “83(b) Election”) must be
filed with the Internal Revenue Service within thirty (30) days after the date Shares are acquired
upon exercise of the Option. Even if the Fair Market Value of the Shares on the date the Option is
exercised equals the Exercise Price paid (and thus no tax is payable), the 83(b) Election must be
made to avoid adverse tax consequences in the future. THE FORM FOR MAKING THIS 83(b) ELECTION IS
ATTACHED
AS EXHIBIT C HERETO. THE GRANTEE UNDERSTANDS THAT FAILURE TO MAKE THIS FILING WITHIN THE APPLICABLE
THIRTY (30)-DAY PERIOD WILL RESULT IN THE RECOGNITION OF ORDINARY INCOME BY THE GRANTEE AS THE
FORFEITURE RESTRICTIONS LAPSE.

          (b) FILING RESPONSIBILITY. THE GRANTEE ACKNOWLEDGES THAT IT IS THE GRANTEE’S SOLE
RESPONSIBILITY, AND NOT THE COMPANY’S, TO FILE A TIMELY 83(b) ELECTION UNDER CODE SECTION 83(b),
EVEN IF THE GRANTEE REQUESTS THE COMPANY OR ITS REPRESENTATIVES TO MAKE THIS FILING ON HIS OR HER
BEHALF.

          (c) Exercise of Vested Non-Qualified Stock Option. If pursuant to the Vesting
Schedule set forth in the Notice, the Shares acquired upon exercise of the Option are not subject
to any forfeiture restrictions, the Grantee will be treated as having received compensation income
(taxable at ordinary income tax rates) equal to the excess, if any, of the Fair Market Value of the
Shares on the date of exercise over the Exercise Price. If the Grantee is a former Employee, the
Company will be required to withhold from the Grantee’s compensation or collect from the Grantee
and pay to the applicable taxing authorities an amount in cash equal to a percentage of this
compensation income at the time of exercise, and may refuse to honor the exercise and refuse to
deliver Shares if such withholding amounts are not delivered at the time of exercise.

          (d) Disposition of Shares. In the case of a Non-Qualified Stock Option, if Shares
are held for more than one year, any gain realized on disposition of the Shares will be treated as
long-term capital gain for federal income tax purposes and subject to tax at a maximum rate of 20%.

     18. Entire Agreement: Governing Law. The Notice, the Plan, the Program and this
Option Agreement constitute the entire agreement of the parties with respect to the subject matter
hereof and supersede in their entirety all prior undertakings and agreements of the Company and the
Grantee with respect to the subject matter hereof, and may not be modified adversely to the
Grantee’s interest except by means of a writing signed by the Company and the Grantee. Nothing in
the Notice, the Plan, the Program and this Option Agreement (except as expressly provided therein)
is intended to confer any rights or remedies on any persons other than the parties. The Notice, the
Plan, the Program and this Option Agreement are to be construed in accordance with and governed by
the internal laws of the State of California without giving effect to any choice of law rule that
would cause the application of the laws of any jurisdiction other than the internal laws of the
State of California to the rights and duties of the parties. Should any provision of the Notice,
the Plan, the Program or this Option Agreement be determined by a court of law to be illegal or
unenforceable, such provision shall be enforced to the fullest extent allowed by law and the other provisions shall nevertheless remain
effective and shall remain enforceable.

 

 

     19. Headings. The captions used in the Notice and this Option Agreement are
inserted for convenience and shall not be deemed a part of the Option for construction or
interpretation.

     20. Dispute Resolution. The provisions of this Section 20 shall be the exclusive
means of resolving disputes arising out of or relating to the Notice, the Plan, the Program and
this Option Agreement. The Company, the Grantee, and the Grantee’s assignees pursuant to Section 8
(the “parties”) shall attempt in good faith to resolve any disputes arising out of or relating to
the Notice, the Plan, the Program and this Option Agreement by negotiation between individuals who
have authority to settle the controversy. Negotiations shall be commenced by either party by notice
of a written statement of the party’s position and the name and title of the individual who will
represent the party. Within thirty (30) days of the written notification, the parties shall meet at
a mutually acceptable time and place, and thereafter as often as they reasonably deem necessary, to
resolve the dispute. If the dispute has not been resolved by negotiation, the parties agree that
any suit, action, or proceeding arising out of or relating to the Notice, the Plan, the Program or
this Option Agreement shall be brought in the United States District Court for the Northern
District of California (or should such court lack jurisdiction to hear such action, suit or
proceeding, in the Santa Clara County Superior Court) and that the parties shall submit to the
jurisdiction of such court. The parties irrevocably waive,
to the fullest extent permitted by law, any objection the party may have to the laying of venue for
any such suit, action or proceeding brought in such courts. THE PARTIES ALSO EXPRESSLY WAIVE ANY
RIGHT THEY HAVE OR MAY HAVE TO A JURY TRIAL OF ANY SUCH SUIT, ACTION OR PROCEEDING. If any one or
more provisions of this Section 20 shall for any reason be held invalid or unenforceable, it is the
specific intent of the parties that such provisions shall be modified to the minimum extent
necessary to make it or its application valid and enforceable.

     21. Notices. Any notice required or permitted hereunder shall be given in writing
and shall be deemed effectively given upon personal delivery or upon deposit in the United States
mail by certified mail (if the parties are within the United States) or upon deposit for delivery
by an internationally recognized express mail courier service (for international delivery of
notice), with postage and fees prepaid, addressed to the other party at its address as shown
beneath its signature in the Notice, or to such other address as such party may designate in
writing from time to time to the other party.

 

 

EXHIBIT A

STRATEX NETWORKS, INC. 2002 STOCK INCENTIVE PLAN

EXERCISE NOTICE

Stratex Networks, Inc.

170 Rose Orchard Way

San Jose, California 95134

Attention: Secretary

     1. Exercise of Option. Effective as of today,                     , ___the
undersigned (the “Grantee”) hereby elects to exercise the Grantee’s option to purchase                     
shares of the Common Stock (the “Shares”) of Stratex Networks, Inc. (the “Company”) under and
pursuant to the Company’s 2002 Stock Incentive Plan, the Company’s 2002 Non-Employee Director
Option Program (the “Program”), as amended from time to time, and the Non-Qualified Stock Option
Award Agreement (the “Option Agreement”) and Notice of Non-qualified Stock Option Award (the
“Notice”) dated                     , ___. Unless otherwise defined herein, the terms defined in the
Plan and the Program shall have the same defined meanings in this Exercise Notice.

     2. Representations of the Grantee. The Grantee acknowledges that the Grantee has
received, read and understood the Notice, the Plan, the Program and the Option Agreement and agrees
to abide by and be bound by their terms and conditions.

     3. Rights as Stockholder. Until the stock certificate evidencing such Shares is
issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized
transfer agent of the Company), no right to vote or receive dividends or any other rights as a
stockholder shall exist with respect to the Shares, notwithstanding the exercise of the Option. The
Company shall issue (or cause to be issued) such stock certificate promptly after the Option is
exercised. No adjustment will be made for a dividend or other right for which the record date is
prior to the date the stock certificate is issued, except as provided in Section 8 of the Plan.

     The Grantee shall enjoy rights as a stockholder until such time as the Grantee disposes of the
Shares or the Company and/or its assignee(s) exercises the Repurchase Right. Upon such exercise,
the Grantee shall have no further rights as a holder of the Shares so purchased except the right to
receive payment for the Shares so purchased in accordance with the provisions of the Option
Agreement, and the Grantee shall forthwith cause the certificate(s) evidencing the Shares so
purchased to be surrendered to the Company for transfer or cancellation.

     4. Delivery of Payment. The Grantee herewith delivers to the Company the full
Exercise Price for the Shares, which, to the extent selected, shall be deemed to be satisfied by
use of the broker-dealer sale and remittance procedure to pay the Exercise Price provided in
Section 3(d) of the Option Agreement.

 

 

     5. Tax Consultation. The Grantee understands that the Grantee may suffer adverse
tax consequences as a result of the Grantee’s purchase or disposition of the Shares. The Grantee
represents that the Grantee has consulted with any tax consultants the Grantee deems advisable in
connection with the purchase or disposition of the Shares and that the Grantee is not relying on
the Company for any tax advice.

     6. Tax Election; Taxes. The Grantee shall provide the Company with a copy of any
timely filed 83(b) Election relating to the purchase of the Shares. If the Grantee makes a timely
83(b) Election, the Grantee shall immediately pay the Company (or the Related Entity to which the
Grantee provides service) the amount necessary to satisfy any applicable federal, state, and local
income and employment tax withholding obligations. If the Grantee does not make a timely 83(b)
Election, the Grantee shall, either at the time that the restrictions lapse under the Option
Agreement, the Program and the Plan or at the time withholding is otherwise required by Applicable
Law, pay the Company (or the Related Entity to which the Grantee provides service) the amount
necessary to satisfy any applicable federal, state, and local income and employment tax withholding
obligations. In addition, the Grantee agrees to satisfy all other applicable federal, state and
local income and employment tax withholding obligations and herewith delivers to the Company the full amount of such obligations or
has made arrangements acceptable to the Company to satisfy such obligations.

     7. Restrictive Legends. The Grantee understands and agrees that the Company
shall cause the legend set forth below or legends substantially equivalent thereto, to be placed
upon any certificate(s) evidencing ownership of the Shares together with any other legends that may
be required by the Company or by state or federal securities laws:

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO
CERTAIN RESTRICTIONS ON TRANSFER AND A REPURCHASE RIGHT HELD
BY THE ISSUER OR ITS ASSIGNEE(S) AS SET FORTH IN THE OPTION
AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE
SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL
OFFICE OF THE ISSUER. SUCH TRANSFER RESTRICTIONS AND
REPURCHASE RIGHT ARE BINDING ON TRANSFEREES OF THESE SHARES.

     8. Successors and Assigns. The Company may assign any of its rights under this
Exercise Notice to single or multiple assignees, and this agreement shall inure to the benefit of
the successors and assigns of the Company. This Exercise Notice shall be binding upon the Grantee
and his or her heirs, executors, administrators, successors and assigns.

     9. Headings. The captions used in this Exercise Notice are inserted for
convenience and shall not be deemed a part of this agreement for construction or interpretation.

     10. Dispute Resolution. The provisions of Section 20 of the Option Agreement
shall be the exclusive means of resolving disputes arising out of or relating to this Exercise
Notice.

     11. Governing Law; Severability. This Exercise Notice is to be construed in
accordance with and governed by the internal laws of the State of California without giving effect
to any choice of law rule that would cause the application of the laws of any jurisdiction other
than the internal laws of the

 

 

State of California to the rights and duties of the parties. Should any provision of this Exercise
Notice be determined by a court of law to be illegal or unenforceable, such provision shall be
enforced to the fullest extent allowed by law and the other provisions shall nevertheless remain
effective and shall remain enforceable.

     12. Notices. Any notice required or permitted hereunder shall be given in writing
and shall be deemed effectively given upon personal delivery or upon deposit in the United States
mail by certified mail, (if the parties are within the United States) or upon deposit for delivery
by an internationally recognized express mail courier service (for international delivery of
notice) with postage and fees prepaid, addressed to the other party at its address as shown below
beneath its signature, or to such other address as such party may designate in writing from time to
time to the other party.

     13. Further Instruments. The parties agree to execute such further instruments
and to take such further action as may be reasonably necessary to carry out the purposes and intent
of this agreement.

     14. Entire Agreement. The Notice, the Plan, the Program, and the Option Agreement
are incorporated herein by reference, and together with this Exercise Notice constitute the entire
agreement of the parties with respect to the subject matter hereof and supersede in their entirety
all prior undertakings and agreements of the Company and the Grantee with respect to the subject
matter hereof, and may not be modified adversely to the Grantee’s interest except by means of a
writing signed by the Company and the Grantee. Nothing in the Notice, the Plan, the Program, the
Option Agreement and this Exercise Notice (except as expressly provided therein) is intended to
confer any rights or remedies on any persons other than the parties.

	 	 	 	 	 	 	 
	Submitted by:	 	 	 	Accepted by:
	 
	 	 	 	 	 	 
	GRANTEE:	 	 	 	STRATEX NETWORKS, INC.
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
 
	 

	 	 	 	Title:	 	 
	 

(Signature)

	 	 
	 	 	 	 
 
	 
	 	 	 	 	 	 
	Address:	 	 	 	Address:
	 
	 	 	 	 	 	 
	 	 	 	 	170 Rose Orchard Way
	 

	 	 	 	San Jose, California 95134
	 	 	 	 	 
	 

	 	 	 	 	 	 

 

 

EXHIBIT B

STOCK ASSIGNMENT SEPARATE FROM CERTIFICATE

[PLEASE SIGN THIS DOCUMENT BUT DO NOT DATE IT. THE DATE AND INFORMATION OF THE

TRANSFEREE WILL BE COMPLETED IF AND WHEN THE SHARES ARE ASSIGNED.]

     FOR
VALUE RECEIVED,                                                   
          
hereby sells, assigns
and transfers unto  ,
                                        (___) shares of the Common Stock Stratex Networks,
Inc., a Delaware corporation (the “Company”), standing in his name on the books of, represented by
Certificate No. ___ herewith, and does hereby irrevocably constitute and appoint the Secretary of
the Company attorney to transfer the said stock in the books of the Company with full power of
substitution.

DATED: ________________

___________________________________

The undersigned spouse of ____________________ joins in this assignment.

Dated: ___________________   
                
   ___________________________________
       
                
                
  
                
                 
(Spouse of _____________)

 

 

EXHIBIT C

ELECTION UNDER SECTION 83(b)

OF THE INTERNAL REVENUE CODE OF 1986

     The undersigned taxpayer hereby elects, pursuant to the Internal Revenue Code, to include in
gross income for 20___ the amount of any compensation taxable in connection with the taxpayer’s
receipt of the property described below:

          1. The name, address, taxpayer identification number and taxable year of the undersigned
are:

TAXPAYER’S NAME:

SPOUSE’S NAME:

TAXPAYER’S SOCIAL SECURITY NO.:

SPOUSE’S SOCIAL SECURITY NO.:

TAXABLE YEAR: Calendar Year 20__

ADDRESS:

          2. The property which is the subject of this election is                      shares of common
stock of Stratex Networks, Inc.

          3.
The property was transferred to the undersigned on                     , 20___.

          4. The property is subject to the following restriction: the right of repurchase of the
shares of common stock by Stratex Networks, Inc. or its successor or assigns upon the cessation of
service with Stratex Networks, Inc. or its successor or assigns prior to the lapse of the
designated restriction period. The repurchase price shall be the lower of the original purchase
price or the fair market value of the shares on the repurchase date.

          5. The fair market value of the property at the time of transfer (determined without
regard to any restriction other than a restriction which by its terms will never lapse) is:
$               
      per share x         
             shares = $
                
    .

          6.
The undersigned paid $                     per share x                      shares for the property
transferred or a total of $                    .

The undersigned has submitted a copy of this statement to the person for whom the services were
performed in connection with the undersigned’s receipt of the above-described property. The
undersigned taxpayer is the person performing the services in connection with the transfer of said
property.

 

 

     The undersigned will file this election with the Internal Revenue Service office to which he
files his annual income tax return not later than 30 days after the date of transfer of the
property. A copy of the election also will be furnished to the person for whom the services were
performed. Additionally, the undersigned will include a copy of the election with his income tax
return for the taxable year in which the property is transferred. The undersigned understands that
this election will also be effective as an election under                     law.

	 	 	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 
	 	 
	 

	 	 	 	 	 	Taxpayer	 	 
	The undersigned spouse of taxpayer joins in this election.	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 
	 	 
	 

	 	 	 	 	 	Spouse of Taxpayer	 	 

 

 

STRATEX NETWORKS, INC. 2002 STOCK INCENTIVE PLAN

NOTICE OF STOCK OPTION AWARD

[PER PLAN, ACCELERATION FOR NON-OFFICERS UNLESS ASSUMED — REMOVE THIS]

	 	 	 	 	 
	     Grantee’s Name and Address:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 

     You have been granted an option to purchase shares of Common Stock, subject to the terms and
conditions of this Notice of Stock Option Award (the “Notice”), the Stratex Networks, Inc. 2002
Stock Incentive Plan, as amended from time to time (the “Plan”) and the Stock Option Award
Agreement (the “Option Agreement”) attached hereto, as follows. Unless otherwise defined herein,
the terms defined in the Plan shall have the same defined meanings in this Notice.

	 	 	 	 	 
	     Award Number

	 	 
 

	 	 
	 
	 	 	 	 
	     Date of Award

	 	 
 

	 	  
	 
	 	 	 	 
	     Vesting Commencement Date

	 	 
 

	 	 
	 
	 	 	 	 
	     Exercise Price per Share

	 	$ 
 

	 	 
	 
	 	 	 	 
	     Total Number of Shares subject to the
Option

	 	 
 

	 	 
	 
	 	 	 	 
	     Total Exercise Price

	 	$ 
 

	 	 
	 
	 	 	 	 
	     Type of Option:

	 	                     Incentive Stock Option	 	 
	 
	 	 	 	 
	 

	 	                     Non-Qualified Stock Option	 	 
	 
	 	 	 	 
	     Expiration Date:

	 	 	 	 
	 

	 	 

	 	 
	     Post-Termination Exercise Period:

	 	Three (3) Months	 	 

Vesting Schedule:

     Subject to Grantee’s Continuous Service and other limitations set forth in this Notice, the
Plan and the Option Agreement, the Option may be exercised, in whole or in part, in accordance with
the following schedule: 25% of the Shares subject to the Option shall vest twelve months after the
Vesting Commencement Date, and an additional 25% of the Shares subject to the Option shall vest on
each yearly anniversary of the Vesting Commencement Date thereafter.

 

 

     During any authorized leave of absence, the vesting of the Option as provided in this schedule
shall be suspended after the leave of absence exceeds a period of ninety (90) days. Vesting of the
Option shall resume upon the Grantee’s termination of the leave of absence and return to service to
the Company or a Related Entity. The Vesting Schedule of the Option shall be extended by the length
of the suspension.

     In the event of the Grantee’s change in status from Employee to Consultant or from an Employee
whose customary employment is 20 hours or more per week to an Employee whose customary employment
is fewer than 20 hours per week, vesting of the Option shall continue only to the extent determined
by the Administrator as of such change in status.

     In the event of termination of the Grantee’s Continuous Service for Cause, the Grantee’s right
to exercise the Option shall terminate concurrently with the termination of the Grantee’s
Continuous Service.

     IN WITNESS WHEREOF, the Company and the Grantee have executed this Notice and agree that the
Option is to be governed by the terms and conditions of this Notice, the Plan, and the Option
Agreement.

	 	 	 	 	 	 	 
	 	 	Stratex Networks, Inc.,	 	 
	 	 	a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

THE GRANTEE ACKNOWLEDGES AND AGREES THAT THE SHARES SUBJECT TO THE OPTION SHALL VEST, IF AT ALL,
ONLY DURING THE PERIOD OF THE GRANTEE’S CONTINUOUS SERVICE (NOT THROUGH THE ACT OF BEING HIRED,
BEING GRANTED THE OPTION OR ACQUIRING SHARES HEREUNDER). THE GRANTEE FURTHER ACKNOWLEDGES AND
AGREES THAT NOTHING IN THIS NOTICE, THE OPTION AGREEMENT, OR THE PLAN SHALL CONFER UPON THE GRANTEE
ANY RIGHT WITH RESPECT TO FUTURE AWARDS OR CONTINUATION OF GRANTEE’S CONTINUOUS SERVICE, NOR SHALL
IT INTERFERE IN ANY WAY WITH THE GRANTEE’S RIGHT OR THE RIGHT OF THE GRANTEE’S EMPLOYER TO
TERMINATE GRANTEE’S CONTINUOUS SERVICE, WITH OR WITHOUT CAUSE, AND WITH OR WITHOUT NOTICE. THE
GRANTEE ACKNOWLEDGES THAT UNLESS THE GRANTEE HAS A WRITTEN EMPLOYMENT AGREEMENT WITH THE COMPANY TO
THE CONTRARY, GRANTEE’S STATUS IS AT WILL.

     The Grantee acknowledges receipt of a copy of the Plan and the Option Agreement, and
represents that he or she is familiar with the terms and provisions thereof, and hereby accepts the
Option subject to all of the terms and provisions hereof and thereof. The Grantee has reviewed this
Notice, the Plan, and the Option Agreement in their entirety, has had an opportunity to obtain the
advice of counsel prior to executing this Notice, and fully understands all provisions of this
Notice, the

 

 

Plan and the Option Agreement. The Grantee hereby agrees that all disputes arising out of or
relating to this Notice, the Plan and the Option Agreement shall be resolved in accordance with
Section 15 of the Option Agreement. The Grantee further agrees to notify the Company upon any
change in the residence address indicated in this Notice.

	 	 	 	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	 	 	Signed:	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 
	 

	 	 	 	 	 	 	 	Grantee	 	 

 

 

AWARD NUMBER: ___________

STRATEX NETWORKS, INC. 2002 STOCK INCENTIVE PLAN

STOCK OPTION AWARD AGREEMENT

     1. Grant of Option. Stratex Networks, Inc., a Delaware corporation (the
“Company”), hereby grants to the Grantee (the “Grantee”) named in the Notice of Stock Option Award
(the “Notice”), an option (the “Option”) to purchase the Total Number of Shares of Common Stock
subject to the Option (the “Shares”) set forth in the Notice, at the Exercise Price per Share set
forth in the Notice (the “Exercise Price”) subject to the terms and provisions of the Notice, this
Stock Option Award Agreement (the “Option Agreement”) and the Company’s 2002 Stock Incentive Plan,
as amended from time to time (the “Plan”), which are incorporated herein by reference. Unless
otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in
this Option Agreement.

     If designated in the Notice as an Incentive Stock Option, the Option is intended to qualify as
an Incentive Stock Option as defined in Section 422 of the Code. However, notwithstanding such
designation, to the extent that the aggregate Fair Market Value of Shares subject to Options
designated as Incentive Stock Options which become exercisable for the first time by the Grantee
during any calendar year (under all plans of the Company or any Parent or Subsidiary of the
Company) exceeds $100,000, such excess Options, to the extent of the Shares covered thereby in
excess of the foregoing limitation, shall be treated as Non-Qualified Stock Options. For this
purpose, Incentive Stock Options shall be taken into account in the order in which they were
granted, and the Fair Market Value of the Shares shall be determined as of the date the Option with
respect to such Shares is awarded.

     2. Exercise of Option.

          (a) Right to Exercise. The Option shall be exercisable during its term in
accordance with the Vesting Schedule set out in the Notice and with the applicable provisions of
the Plan and this Option Agreement. The Option shall be subject to the provisions of Section 11 of
the Plan relating to the exercisability or termination of the Option in the event of a Corporate
Transaction or Change in Control. No partial exercise of the Option may be for less than the lesser
of five percent (5%) of the total number of Shares subject to the Option or the remaining number of
Shares subject to the Option. The Grantee shall be subject to reasonable limitations on the number
of requested exercises during any monthly or weekly period as determined by the Administrator. In
no event shall the Company issue fractional Shares.

          (b) The Option shall be exercisable only by delivery of an exercise notice (a form of
which is attached as Exhibit A) or by other such procedure as specified from time to time by the
Administrator which shall state the election to exercise the Option, the whole number of Shares in
respect of which the Option is being exercised, such other representations and agreements as to the
holder’s investment intent with respect to such Shares and such other provisions as may be required
by the Administrator. The exercise notice shall be signed by the Grantee and shall be delivered in
person, by certified mail, or by such other method (including electronic transmission) as
determined from time to time by the Administrator to the Company accompanied by payment of the
Exercise Price. The Option shall be deemed to be exercised upon receipt by the Company of such
written notice

 

 

accompanied by the Exercise Price, which, to the extent selected, shall be deemed to be satisfied
by use of the broker-dealer sale and remittance procedure to pay the Exercise Price provided in
Section 3(d), below.

          (c) Taxes. No Shares will be delivered to the Grantee or other person pursuant to
the exercise of the Option until the Grantee or other person has made arrangements acceptable to
the Administrator for the satisfaction of applicable income and employment tax withholding
obligations, including, without limitation, such other tax obligations of the Grantee incident to
the receipt of Shares or the disqualifying disposition of Shares received on exercise of an
Incentive Stock Option. Upon exercise of the Option, the Company or the Grantee’s employer may
offset or withhold (from any amount owed by the Company or the Grantee’s employer to the Grantee)
or collect from the Grantee or other person an amount sufficient to satisfy such tax obligations
and/or the employer’s withholding obligations.

     3. Method of Payment. Payment of the Exercise Price shall be by any of the
following, or a combination thereof, at the election of the Grantee; provided, however, that such
exercise method does not then violate any Applicable Law and, provided further, that the portion of
the Exercise Price equal to the par value of the Shares must be paid in cash or other legal
consideration permitted by the Delaware General Corporation Law:

          (a) cash;

          (b) check;

          (c) surrender of Shares or delivery of a properly executed form of attestation of
ownership of Shares as the Administrator may require (including withholding of Shares otherwise
deliverable upon exercise of the Option) which have a Fair Market Value on the date of surrender or
attestation equal to the aggregate Exercise Price of the Shares as to which the Option is being
exercised (but only to the extent that such exercise of the Option would not result in an
accounting compensation charge with respect to the Shares used to pay the exercise price); or

          (d) payment through a broker-dealer sale and remittance procedure pursuant to which the
Grantee (i) shall provide written instructions to a Company designated brokerage firm to effect the
immediate sale of some or all of the purchased Shares and remit to the Company, out of the sale
proceeds available on the settlement date, sufficient funds to cover the aggregate exercise price
payable for the purchased Shares and (ii) shall provide written directives to the Company to
deliver the certificates for the purchased Shares directly to such brokerage firm in order to
complete the sale transaction.

     4. Restrictions on Exercise. The Option may not be exercised if the issuance of the
Shares subject to the Option upon such exercise would constitute a violation of any Applicable
Laws. In addition, the Option, if an Incentive Stock Option, may not be exercised until such time
as the Plan has been approved by the stockholders of the Company.

     5. Termination or Change of Continuous Service. In the event the Grantee’s
Continuous Service terminates, other than for Cause, the Grantee may, but only during the
Post-Termination

 

 

Exercise Period, exercise the portion of the Option that was vested at the date of such termination
(the “Termination Date”). In the event of termination of the Grantee’s Continuous Service for
Cause, the Grantee’s right to exercise the Option shall, except as otherwise determined by the
Administrator, terminate concurrently with the termination of the Grantee’s Continuous Service
(also the “Termination Date”). In no event shall the Option be exercised later than the Expiration
Date set forth in the Notice. In the event of the Grantee’s change in status from Employee,
Director or Consultant to any other status of Employee, Director or Consultant, the Option shall
remain in effect and, except to the extent otherwise determined by the Administrator, continue to
vest; provided, however, with respect to any Incentive Stock Option that shall remain in effect
after a change in status from Employee to Director or Consultant, such Incentive Stock Option shall
cease to be treated as an Incentive Stock Option and shall be treated as a Non-Qualified Stock
Option on the day three (3) months and one (1) day following such change in status. Except as
provided in Sections 6 and 7 below, to the extent that the Option was unvested on the Termination
Date, or if the Grantee does not exercise the vested portion of the Option within the
Post-Termination Exercise Period, the Option shall terminate.

     6. Disability of Grantee. In the event the Grantee’s Continuous Service
terminates as a result of his or her Disability, the Grantee may, but only within twelve (12)
months from the Termination Date (and in no event later than the Expiration Date), exercise the
portion of the Option that was vested on the Termination Date; provided, however, that if such
Disability is not a “disability” as such term is defined in Section 22(e)(3) of the Code and the
Option is an Incentive Stock Option, such Incentive Stock Option shall cease to be treated as an
Incentive Stock Option and shall be treated as a Non-Qualified Stock Option on the day three (3)
months and one (1) day following the Termination Date. To the extent that the Option was unvested
on the Termination Date, or if the Grantee does not exercise the vested portion of the Option
within the time specified herein, the Option shall terminate.

     7. Death of Grantee. In the event of the termination of the Grantee’s Continuous
Service as a result of his or her death, or in the event of the Grantee’s death during the
Post-Termination Exercise Period or during the twelve (12) month period following the Grantee’s
termination of Continuous Service as a result of his or her Disability, the Grantee’s estate, or a
person who acquired the right to exercise the Option by bequest or inheritance, may exercise the
portion of the Option that was vested at the date of termination, within twelve (12) months from
the date of death (but in no event later than the Expiration Date). To the extent that the Option
was unvested on the date of death, or if the vested portion of the Option is not exercised within
the time specified herein, the Option shall terminate.

     8. Transferability of Option. The Option, if an Incentive Stock Option, may not
be transferred in any manner other than by will or by the laws of descent and distribution and may
be exercised during the lifetime of the Grantee only by the Grantee. The Option, if a Non-Qualified
Stock Option, may not be transferred in any manner other than by will or by the laws of descent and
distribution, provided, however, that a Non-Qualified Stock Option may be transferred to members of
the Grantee’s Immediate Family to the extent and in the manner authorized by the Administrator. The
terms of the Option shall be binding upon the executors, administrators, heirs and successors of
the Grantee.

     9. Stop-Transfer Notices. In order to ensure compliance with the restrictions on
transfer set forth in this Option Agreement, the Notice or the Plan, the Company may issue
appropriate “stop

 

 

transfer” instructions to its transfer agent, if any, and, if the Company transfers its own
securities, it may make appropriate notations to the same effect in its own records.

     10. Refusal to Transfer. The Company shall not be required (i) to transfer on its
books any Shares that have been sold or otherwise transferred in violation of any of the provisions
of this Option Agreement or (ii) to treat as owner of such Shares or to accord the right to vote or
pay dividends to any purchaser or other transferee to whom such Shares shall have been so
transferred.

     11. Term of Option. The Option may be exercised no later than the Expiration Date
set forth in the Notice or such earlier date as otherwise provided herein.

     12. Tax Consequences. Set forth below is a brief summary as of the date of this
Option Agreement of some of the federal tax consequences of exercise of the Option and disposition
of the Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT
TO CHANGE. THE GRANTEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THE OPTION OR DISPOSING OF
THE SHARES.

          (a) Exercise of Incentive Stock Option. If the Option qualifies as an Incentive
Stock Option, there will be no regular federal income tax liability upon the exercise of the
Option, although the excess, if any, of the Fair Market Value of the Shares on the date of exercise
over the Exercise Price will be treated as income for purposes of the alternative minimum tax for
federal tax purposes and may subject the Grantee to the alternative minimum tax in the year of
exercise. However, the Internal Revenue Service issued proposed regulations which would subject the
Grantee to withholding at the time the Grantee exercises an Incentive Stock Option for Social
Security and Medicare taxes based upon the excess, if any, of the Fair Market Value of the Shares
on the date of exercise over the Exercise Price. These proposed regulations are subject to further
modification by the Internal Revenue Service and, if adopted, would be effective only for the
exercise of Incentive Stock Options on or after January 1, 2003.

          (b) Exercise of Incentive Stock Option Following Disability. If the Grantee’s
Continuous Service terminates as a result of Disability that is not total and permanent disability
as defined in Section 22(e)(3) of the Code, to the extent permitted on the date of termination, the
Grantee must exercise an Incentive Stock Option within three (3) months of such termination for the
Incentive Stock Option to be qualified as an Incentive Stock Option.

          (c) Exercise of Non-Qualified Stock Option. On exercise of a Non-Qualified Stock
Option, the Grantee will be treated as having received compensation income (taxable at ordinary
income tax rates) equal to the excess, if any, of the Fair Market Value of the Shares on the date
of exercise over the Exercise Price. If the Grantee is an Employee or a former Employee, the
Company will be required to withhold from the Grantee’s compensation or collect from the Grantee
and pay to the applicable taxing authorities an amount in cash equal to a percentage of this
compensation income at the time of exercise, and may refuse to honor the exercise and refuse to
deliver Shares if such withholding amounts are not delivered at the time of exercise.

          (d) Disposition of Shares. In the case of a Non-Qualified Stock Option, if Shares
are held for more than one year, any gain realized on disposition of the Shares will be treated as
long-term

 

 

capital gain for federal income tax purposes and subject to tax at a maximum rate of 20%. In the
case of an Incentive Stock Option, if Shares transferred pursuant to the Option are held for more
than one year after receipt of the Shares and are disposed more than two years after the Date of
Award, any gain realized on disposition of the Shares also will be treated as capital gain for
federal income tax purposes and subject to the same tax rates and holding periods that apply to
Shares acquired upon exercise of a Non-Qualified Stock Option. If Shares purchased under an
Incentive Stock Option are disposed of prior to the expiration of such one-year or two-year
periods, any gain realized on such disposition will be treated as compensation income (taxable at
ordinary income rates) to the extent of the difference between the Exercise Price and the lesser of
(i) the Fair Market Value of the Shares on the date of exercise, or (ii) the sale price of the
Shares.

     13. Entire Agreement: Governing Law. The Notice, the Plan and this Option
Agreement constitute the entire agreement of the parties with respect to the subject matter hereof
and supersede in their entirety all prior undertakings and agreements of the Company and the
Grantee with respect to the subject matter hereof, and may not be modified adversely to the
Grantee’s interest except by means of a writing signed by the Company and the Grantee. Nothing in
the Notice, the Plan and this Option Agreement (except as expressly provided therein) is intended
to confer any rights or remedies on any persons other than the parties. The Notice, the Plan and
this Option Agreement are to be construed in accordance with and governed by the internal laws of
the State of California without giving effect to any choice of law rule that would cause the
application of the laws of any jurisdiction other than the internal laws of the State of California
to the rights and duties of the parties. Should any provision of the Notice, the Plan or this
Option Agreement be determined by a court of law to be illegal or unenforceable, such provision
shall be enforced to the fullest extent allowed by law and the other provisions shall nevertheless
remain effective and shall remain enforceable.

     14. Headings. The captions used in the Notice and this Option Agreement are
inserted for convenience and shall not be deemed a part of the Option for construction or
interpretation.

     15. Dispute Resolution. The provisions of this Section 15 shall be the exclusive
means of resolving disputes arising out of or relating to the Notice, the Plan and this Option
Agreement. The Company, the Grantee, and the Grantee’s assignees pursuant to Section 8 (the
“parties”) shall attempt in good faith to resolve any disputes arising out of or relating to the
Notice, the Plan and this Option Agreement by negotiation between individuals who have authority to
settle the controversy. Negotiations shall be commenced by either party by notice of a written
statement of the party’s position and the name and title of the individual who will represent the
party. Within thirty (30) days of the written notification, the parties shall meet at a mutually
acceptable time and place, and thereafter as often as they reasonably deem necessary, to resolve
the dispute. If the dispute has not been resolved by negotiation, the parties agree that any suit,
action, or proceeding arising out of or relating to the Notice, the Plan or this Option Agreement
shall be brought in the United States District Court for the Northern District of California (or
should such court lack jurisdiction to hear such action, suit or proceeding, in the Santa Clara
County Superior Court) and that the parties shall submit to the jurisdiction of such court. The
parties irrevocably waive, to the fullest extent permitted by law, any objection the party may have
to the laying of venue for any such suit, action or proceeding brought in such court. THE PARTIES
ALSO EXPRESSLY WAIVE ANY RIGHT THEY HAVE OR MAY HAVE TO A JURY TRIAL OF ANY SUCH SUIT, ACTION OR
PROCEEDING. If any one or more provisions of this Section 15 shall for any reason be held invalid
or unenforceable, it is the specific

 

 

intent of the parties that such provisions shall be modified to the minimum extent necessary to
make it or its application valid and enforceable.

     16. Notices. Any notice required or permitted hereunder shall be given in writing
and shall be deemed effectively given upon personal delivery or upon deposit in the United States
mail by certified mail (if the parties are within the United States) or upon deposit for delivery
by an internationally recognized express mail courier service (for international delivery of
notice), with postage and fees prepaid, addressed to the other party at its address as shown
beneath its signature in the Notice, or to such other address as such party may designate in
writing from time to time to the other party.

 

 

EXHIBIT A

STRATEX NETWORKS, INC. 2002 STOCK INCENTIVE PLAN

EXERCISE NOTICE

Stratex Networks, Inc.

170 Rose Orchard Way

San Jose, California 95134

Attention: Secretary

     1. Exercise
of Option. Effective as of today,                     , ___ the
undersigned (the “Grantee”) hereby elects to exercise the Grantee’s option to purchase                     
shares of the Common Stock (the “Shares”) of Stratex Networks, Inc. (the “Company”) under and
pursuant to the Company’s 2002 Stock Incentive Plan, as amended from time to time (the “Plan”) and
the [ ] Incentive [ ] Non-Qualified Stock Option Award Agreement (the “Option Agreement”) and
Notice of Stock Option Award (the “Notice”) dated                     , ___. Unless otherwise
defined herein, the terms defined in the Plan shall have the same defined meanings in this Exercise
Notice.

     2. Representations of the Grantee. The Grantee acknowledges that the Grantee has
received, read and understood the Notice, the Plan, and the Option Agreement and agrees to abide by
and be bound by their terms and conditions.

     3. Rights as Stockholder. Until the stock certificate evidencing such Shares is
issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized
transfer agent of the Company), no right to vote or receive dividends or any other rights as a
stockholder shall exist with respect to the Shares, notwithstanding the exercise of the Option. The
Company shall issue (or cause to be issued) such stock certificate promptly after the Option is
exercised. No adjustment will be made for a dividend or other right for which the record date is
prior to the date the stock certificate is issued, except as provided in Section 10 of the Plan.

     4. Delivery of Payment. The Grantee herewith delivers to the Company the full
Exercise Price for the Shares, which, to the extent selected, shall be deemed to be satisfied by
use of the broker-dealer sale and remittance procedure to pay the Exercise Price provided in
Section 3(d) of the Option Agreement.

     5. Tax Consultation. The Grantee understands that the Grantee may suffer adverse
tax consequences as a result of the Grantee’s purchase or disposition of the Shares. The Grantee
represents that the Grantee has consulted with any tax consultants the Grantee deems advisable in
connection with the purchase or disposition of the Shares and that the Grantee is not relying on
the Company for any tax advice

     6. Taxes. The Grantee agrees to satisfy all applicable federal, state and local income
and employment tax withholding obligations and herewith delivers to the Company the full amount of
such obligations or has made arrangements acceptable to the Company to satisfy such obligations. In

 

 

the case of an Incentive Stock Option, the Grantee also agrees, as partial consideration for the
designation of the Option as an Incentive Stock Option, to notify the Company in writing within
thirty (30) days of any disposition of any shares acquired by exercise of the Option if such
disposition occurs within two (2) years from the Date of Award or within one (1) year from the date
the Shares were transferred to the Grantee. If the Company is required to satisfy any federal,
state or local income or employment tax withholding obligations as a result of such an early
disposition, the Grantee agrees to satisfy the amount of such withholding in a manner that the
Administrator prescribes.

     7. Successors and Assigns. The Company may assign any of its rights under this
Exercise Notice to single or multiple assignees, and this agreement shall inure to the benefit of
the successors and assigns of the Company. This Exercise Notice shall be binding upon the Grantee
and his or her heirs, executors, administrators, successors and assigns.

     8. Headings. The captions used in this Exercise Notice are inserted for
convenience and shall not be deemed a part of this agreement for construction or interpretation.

     9. Dispute Resolution. The provisions of Section 15 of the Option Agreement
shall be the exclusive means of resolving disputes arising out of or relating to this Exercise
Notice.

     10. Governing Law; Severability. This Exercise Notice is to be construed in
accordance with and governed by the internal laws of the State of California without giving effect
to any choice of law rule that would cause the application of the laws of any jurisdiction other
than the internal laws of the State of California to the rights and duties of the parties. Should
any provision of this Exercise Notice be determined by a court of law to be illegal or
unenforceable, such provision shall be enforced to the fullest extent allowed by law and the other
provisions shall nevertheless remain effective and shall remain enforceable.

     11. Notices. Any notice required or permitted hereunder shall be given in writing
and shall be deemed effectively given upon personal delivery or upon deposit in the United States
mail by certified mail, (if the parties are within the United States) or upon deposit for delivery
by an internationally recognized express mail courier service (for international delivery of
notice) with postage and fees prepaid, addressed to the other party at its address as shown below
beneath its signature, or to such other address as such party may designate in writing from time to
time to the other party.

     12. Further Instruments. The parties agree to execute such further instruments
and to take such further action as may be reasonably necessary to carry out the purposes and intent
of this agreement.

     13. Entire Agreement. The Notice, the Plan, and the Option Agreement are
incorporated herein by reference, and together with this Exercise Notice constitute the entire
agreement of the parties with respect to the subject matter hereof and supersede in their entirety
all prior undertakings and agreements of the Company and the Grantee with respect to the subject
matter hereof, and may not be modified adversely to the Grantee’s interest except by means of a
writing signed by the Company and the Grantee. Nothing in the Notice, the Plan, the Option
Agreement and this Exercise Notice (except as expressly provided therein) is intended to confer any
rights or remedies on any persons other than the parties.

 

 

	 	 	 	 	 	 	 
	Submitted by:	 	 	 	Accepted by:
	 
	 	 	 	 	 	 
	GRANTEE:	 	 	 	STRATEX NETWORKS, INC.
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
 
	 

	 	 	 	Title:	 	 
	 

(Signature)

	 	 
	 	 	 	 
 
	 
	 	 	 	 	 	 
	Address:	 	 	 	Address:
	 
	 	 	 	 	 	 
	 	 	 	 	170 Rose Orchard Way
	 

	 	 	 	 	 	 
	 	 	 	 	San Jose, California 95134
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	 

 

 

STRATEX NETWORKS, INC. 2002 STOCK INCENTIVE PLAN

NOTICE OF STOCK OPTION AWARD

[DOUBLE TRIGGER ACCELERATION FOR OFFICERS — REMOVE THIS]

	 	 	 	 	 
	     Grantee’s Name and Address:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 

     You have been granted an option to purchase shares of Common Stock, subject to the terms and
conditions of this Notice of Stock Option Award (the “Notice”), the Stratex Networks, Inc. 2002
Stock Incentive Plan, as amended from time to time (the “Plan”) and the Stock Option Award
Agreement (the “Option Agreement”) attached hereto, as follows. Unless otherwise defined herein,
the terms defined in the Plan shall have the same defined meanings in this Notice.

	 	 	 	 	 
	     Award Number

	 	 
 

	 	 
	 
	 	 	 	 
	     Date of Award

	 	 
 

	 	  
	 
	 	 	 	 
	     Vesting Commencement Date

	 	 
 

	 	 
	 
	 	 	 	 
	     Exercise Price per Share

	 	$ 
 

	 	 
	 
	 	 	 	 
	     Total Number of Shares subject to the
Option

	 	 
 

	 	 
	 
	 	 	 	 
	     Total Exercise Price

	 	$ 
 

	 	 
	 
	 	 	 	 
	     Type of Option:

	 	                     Incentive Stock Option	 	 
	 
	 	 	 	 
	 

	 	                     Non-Qualified Stock Option	 	 
	 
	 	 	 	 
	     Expiration Date:

	 	 	 	 
	 

	 	 

	 	 
	     Post-Termination Exercise Period:

	 	Three (3) Months	 	 

     Vesting Schedule:

     Subject to Grantee’s Continuous Service and other limitations set forth in this Notice, the
Plan and the Option Agreement, the Option may be exercised, in whole or in part, in accordance with
the following schedule:

 

 

     25% of the Shares subject to the Option shall vest twelve months after the Vesting
Commencement Date, and an additional 25% of the Shares subject to the Option shall vest on each
yearly anniversary of the Vesting Commencement Date thereafter.

     During any authorized leave of absence, the vesting of the Option as provided in this schedule
shall be suspended after the leave of absence exceeds a period of ninety (90) days. Vesting of the
Option shall resume upon the Grantee’s termination of the leave of absence and return to service to
the Company or a Related Entity. The Vesting Schedule of the Option shall be extended by the length
of the suspension.

     In the event of the Grantee’s change in status from Employee to Consultant or from an Employee
whose customary employment is 20 hours or more per week to an Employee whose customary employment
is fewer than 20 hours per week, vesting of the Option shall continue only to the extent determined
by the Administrator as of such change in status.

     In the event of termination of the Grantee’s Continuous Service for Cause, the Grantee’s right
to exercise the Option shall terminate concurrently with the termination of the Grantee’s
Continuous Service.

     IN WITNESS WHEREOF, the Company and the Grantee have executed this Notice and agree that the
Option is to be governed by the terms and conditions of this Notice, the Plan, and the Option
Agreement.

	 	 	 	 	 	 	 
	 	 	Stratex Networks, Inc.,	 	 
	 	 	a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

THE GRANTEE ACKNOWLEDGES AND AGREES THAT THE SHARES SUBJECT TO THE OPTION SHALL VEST, IF AT ALL,
ONLY DURING THE PERIOD OF THE GRANTEE’S CONTINUOUS SERVICE (NOT THROUGH THE ACT OF BEING HIRED,
BEING GRANTED THE OPTION OR ACQUIRING SHARES HEREUNDER). THE GRANTEE FURTHER ACKNOWLEDGES AND
AGREES THAT NOTHING IN THIS NOTICE, THE OPTION AGREEMENT, OR THE PLAN SHALL CONFER UPON THE GRANTEE
ANY RIGHT WITH RESPECT TO FUTURE AWARDS OR CONTINUATION OF GRANTEE’S CONTINUOUS SERVICE, NOR SHALL
IT INTERFERE IN ANY WAY WITH THE GRANTEE’S RIGHT OR THE RIGHT OF THE GRANTEE’S EMPLOYER TO
TERMINATE GRANTEE’S CONTINUOUS SERVICE, WITH OR WITHOUT CAUSE, AND WITH OR WITHOUT NOTICE. THE
GRANTEE ACKNOWLEDGES THAT UNLESS THE GRANTEE HAS A WRITTEN EMPLOYMENT AGREEMENT WITH THE COMPANY TO
THE CONTRARY, GRANTEE’S STATUS IS AT WILL.

     The Grantee acknowledges receipt of a copy of the Plan and the Option Agreement, and
represents that he or she is familiar with the terms and provisions thereof, and hereby accepts the

 

 

Option subject to all of the terms and provisions hereof and thereof. The Grantee has reviewed this
Notice, the Plan, and the Option Agreement in their entirety, has had an opportunity to obtain the
advice of counsel prior to executing this Notice, and fully understands all provisions of this
Notice, the Plan and the Option Agreement. The Grantee hereby agrees that all disputes arising out
of or relating to this Notice, the Plan and the Option Agreement shall be resolved in accordance
with Section 16 of the Option Agreement. The Grantee further agrees to notify the Company upon any
change in the residence address indicated in this Notice.

	 	 	 	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	 	 	Signed:	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 
	 

	 	 	 	 	 	 	 	Grantee	 	 

 

 

AWARD NUMBER: ___________

STRATEX NETWORKS, INC. 2002 STOCK INCENTIVE PLAN

STOCK OPTION AWARD AGREEMENT

     1. Grant of Option. Stratex Networks, Inc., a Delaware corporation (the
“Company”), hereby grants to the Grantee (the “Grantee”) named in the Notice of Stock Option Award
(the “Notice”), an option (the “Option”) to purchase the Total Number of Shares of Common Stock
subject to the Option (the “Shares”) set forth in the Notice, at the Exercise Price per Share set
forth in the Notice (the “Exercise Price”) subject to the terms and provisions of the Notice, this
Stock Option Award Agreement (the “Option Agreement”) and the Company’s 2002 Stock Incentive Plan,
as amended from time to time (the “Plan”), which are incorporated herein by reference. Unless
otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in
this Option Agreement.

     If designated in the Notice as an Incentive Stock Option, the Option is intended to qualify as
an Incentive Stock Option as defined in Section 422 of the Code. However, notwithstanding such
designation, to the extent that the aggregate Fair Market Value of Shares subject to Options
designated as Incentive Stock Options which become exercisable for the first time by the Grantee
during any calendar year (under all plans of the Company or any Parent or Subsidiary of the
Company) exceeds $100,000, such excess Options, to the extent of the Shares covered thereby in
excess of the foregoing limitation, shall be treated as Non-Qualified Stock Options. For this
purpose, Incentive Stock Options shall be taken into account in the order in which they were
granted, and the Fair Market Value of the Shares shall be determined as of the date the Option with
respect to such Shares is awarded.

     2. Exercise of Option.

          (a) Right to Exercise. The Option shall be exercisable during its term in
accordance with the Vesting Schedule set out in the Notice and with the applicable provisions of
the Plan and this Option Agreement. The Option shall be subject to the provisions of Section 3
relating to the exercisability or termination of the Option in the event of a Corporate Transaction
or Change in Control. No partial exercise of the Option may be for less than the lesser of five
percent (5%) of the total number of Shares subject to the Option or the remaining number of Shares
subject to the Option. The Grantee shall be subject to reasonable limitations on the number of
requested exercises during any monthly or weekly period as determined by the Administrator. In no
event shall the Company issue fractional Shares.

          (b) Method of Exercise. The Option shall be exercisable only by delivery of an
exercise notice (a form of which is attached as Exhibit A) or by other such procedure as specified
from time to time by the Administrator which shall state the election to exercise the Option, the
whole number of Shares in respect of which the Option is being exercised, such other
representations and agreements as to the holder’s investment intent with respect to such Shares and
such other provisions as may be required by the Administrator. The exercise notice shall be signed
by the Grantee and shall be delivered in person, by certified mail, or by such other method
(including electronic transmission) as determined from time to time by the Administrator to the
Company accompanied by payment of the Exercise Price. The Option shall be deemed to be exercised
upon receipt by the Company of such

 

 

written notice accompanied by the Exercise Price, which, to the extent selected, shall be deemed to
be satisfied by use of the broker-dealer sale and remittance procedure to pay the Exercise Price
provided in Section 4(d), below.

          (c) Taxes. No Shares will be delivered to the Grantee or other person pursuant to
the exercise of the Option until the Grantee or other person has made arrangements acceptable to
the Administrator for the satisfaction of applicable income and employment tax withholding
obligations, including, without limitation, such other tax obligations of the Grantee incident to
the receipt of Shares or the disqualifying disposition of Shares received on exercise of an
Incentive Stock Option. Upon exercise of the Option, the Company or the Grantee’s employer may
offset or withhold (from any amount owed by the Company or the Grantee’s employer to the Grantee)
or collect from the Grantee or other person an amount sufficient to satisfy such tax obligations
and/or the employer’s withholding obligations.

     3. Corporate Transactions/Changes in Control.

          (a) Termination of Option to Extent Not Assumed Upon a Corporate Transaction.
Effective upon the consummation of a Corporate Transaction, this Option shall terminate. However,
this Option shall not terminate to the extent it is Assumed in connection with the Corporate
Transaction.

          (b) Acceleration of Option Upon Corporate Transaction/Change in Control.

               (i) Corporate Transaction. In the event of a Corporate Transaction and:

                    (A) for the portion of this Option that is Assumed or Replaced, the Option (if Assumed),
the replacement Option (if Replaced), or the cash incentive program (if Replaced) automatically
shall become fully vested, exercisable and payable for all of the Shares at the time represented by
such Assumed or Replaced portion of this Option, immediately upon termination of the Grantee’s
Continuous Service (substituting the successor employer corporation, if any, for “Company or
Related Entity” for the definition of “Continuous Service”) if such Continuous Service is
terminated by the successor company or the Company without Cause or voluntarily by the Grantee with
Good Reason within eighteen (18) months of the Corporate Transaction; and

                    (B) for the portion of this Option that is neither Assumed nor Replaced, such portion of
the Option shall automatically become fully vested and exercisable for all of the Shares at the
time represented by such portion of the Option, immediately prior to the specified effective date
of the Corporate Transaction.

               (ii) Change in Control. Following a Change in Control (other than a Change in Control
which also is a Corporate Transaction) and upon the termination of the Continuous Service of a
Grantee if such Continuous Service is terminated by the Company or Related Entity without Cause or
voluntarily by the Grantee with Good Reason within eighteen (18) months of a Change in Control, the
outstanding Option shall automatically become fully vested and exercisable and be released from any
repurchase or forfeiture rights (other than repurchase rights exercisable at fair market value),
immediately upon the termination of such Continuous Service.

 

 

          (c) Disclaimer of Accelerated Vesting. In the event that vesting is to occur
earlier than provided in the Vesting Schedule as a result of the application of this Section 3 (the
“Accelerated Vesting”), the Grantee may, prior to the date on which the Accelerated Vesting is to
occur, disclaim some or all of the Accelerated Vesting to the extent that the Accelerated Vesting
would result in any payment or benefit (within the meaning of Section 280G(b)(2) of the Code) to
the Grantee that would be subject to the excise tax imposed by Section 4999 of the Code. To
disclaim such Accelerated Vesting, the Grantee must provide notice of the disclaimer to the Company
in a form that is acceptable to the Administrator.

          (d) The portion of the Option, if an Incentive Stock Option, accelerated under this
Section 3 in connection with a Corporate Transaction or Change in Control shall remain exercisable
as an Incentive Stock Option under the Code only to the extent the $100,000 dollar limitation of
Section 422(d) of the Code is not exceeded. To the extent such dollar limitation is exceeded, the
accelerated excess portion of the Option shall be exercisable as a Non-Qualified Stock Option.

     4. Method of Payment. Payment of the Exercise Price shall be by any of the
following, or a combination thereof, at the election of the Grantee; provided, however, that such
exercise method does not then violate any Applicable Law and, provided further, that the portion of
the Exercise Price equal to the par value of the Shares must be paid in cash or other legal
consideration permitted by the Delaware General Corporation Law:

          (a) cash;

          (b) check;

          (c) surrender of Shares or delivery of a properly executed form of attestation of
ownership of Shares as the Administrator may require (including withholding of Shares otherwise
deliverable upon exercise of the Option) which have a Fair Market Value on the date of surrender or
attestation equal to the aggregate Exercise Price of the Shares as to which the Option is being
exercised (but only to the extent that such exercise of the Option would not result in an
accounting compensation charge with respect to the Shares used to pay the exercise price); or

          (d) payment through a broker-dealer sale and remittance procedure pursuant to which the
Grantee (i) shall provide written instructions to a Company designated brokerage firm to effect the
immediate sale of some or all of the purchased Shares and remit to the Company, out of the sale
proceeds available on the settlement date, sufficient funds to cover the aggregate exercise price
payable for the purchased Shares and (ii) shall provide written directives to the Company to
deliver the certificates for the purchased Shares directly to such brokerage firm in order to
complete the sale transaction.

     5. Restrictions on Exercise. The Option may not be exercised if the issuance of
the Shares subject to the Option upon such exercise would constitute a violation of any Applicable
Laws. In addition, the Option, if an Incentive Stock Option, may not be exercised until such time
as the Plan has been approved by the stockholders of the Company.

 

 

     6. Termination or Change of Continuous Service. In the event the Grantee’s
Continuous Service terminates, other than for Cause, the Grantee may, but only during the
Post-Termination Exercise Period, exercise the portion of the Option that was vested at the date of
such termination (the “Termination Date”). In the event of termination of the Grantee’s Continuous
Service for Cause, the Grantee’s right to exercise the Option shall, except as otherwise determined
by the Administrator, terminate concurrently with the termination of the Grantee’s Continuous
Service (also the “Termination Date”). In no event shall the Option be exercised later than the
Expiration Date set forth in the Notice. In the event of the Grantee’s change in status from
Employee, Director or Consultant to any other status of Employee, Director or Consultant, the
Option shall remain in effect and, except to the extent otherwise determined by the Administrator,
continue to vest; provided, however, with respect to any Incentive Stock Option that shall remain
in effect after a change in status from Employee to Director or Consultant, such Incentive Stock
Option shall cease to be treated as an Incentive Stock Option and shall be treated as a
Non-Qualified Stock Option on the day three (3) months and one (1) day following such change in
status. Except as provided in Sections 7 and 8 below, to the extent that the Option was unvested on
the Termination Date, or if the Grantee does not exercise the vested portion of the Option within
the Post-Termination Exercise Period, the Option shall terminate.

     7. Disability of Grantee. In the event the Grantee’s Continuous Service
terminates as a result of his or her Disability, the Grantee may, but only within twelve (12)
months from the Termination Date (and in no event later than the Expiration Date), exercise the
portion of the Option that was vested on the Termination Date; provided, however, that if such
Disability is not a “disability” as such term is defined in Section 22(e)(3) of the Code and the
Option is an Incentive Stock Option, such Incentive Stock Option shall cease to be treated as an
Incentive Stock Option and shall be treated as a Non-Qualified Stock Option on the day three (3)
months and one (1) day following the Termination Date. To the extent that the Option was unvested
on the Termination Date, or if the Grantee does not exercise the vested portion of the Option
within the time specified herein, the Option shall terminate.

     8. Death of Grantee. In the event of the termination of the Grantee’s Continuous
Service as a result of his or her death, or in the event of the Grantee’s death during the
Post-Termination Exercise Period or during the twelve (12) month period following the Grantee’s
termination of Continuous Service as a result of his or her Disability, the Grantee’s estate, or a
person who acquired the right to exercise the Option by bequest or inheritance, may exercise the
portion of the Option that was vested at the date of termination, within twelve (12) months from
the date of death (but in no event later than the Expiration Date). To the extent that the Option
was unvested on the date of death, or if the vested portion of the Option is not exercised within
the time specified herein, the Option shall terminate.

     9. Transferability of Option. The Option, if an Incentive Stock Option, may not
be transferred in any manner other than by will or by the laws of descent and distribution and may
be exercised during the lifetime of the Grantee only by the Grantee. The Option, if a Non-Qualified
Stock Option, may not be transferred in any manner other than by will or by the laws of descent and
distribution, provided, however, that a Non-Qualified Stock Option may be transferred to members of
the Grantee’s Immediate Family to the extent and in the manner authorized by the Administrator. The
terms of the Option shall be binding upon the executors, administrators, heirs and successors of
the Grantee.

 

 

     10. Stop-Transfer Notices. In order to ensure compliance with the restrictions on
transfer set forth in this Option Agreement, the Notice or the Plan, the Company may issue
appropriate “stop transfer” instructions to its transfer agent, if any, and, if the Company
transfers its own securities, it may make appropriate notations to the same effect in its own
records.

     11. Refusal to Transfer. The Company shall not be required (i) to transfer on its
books any Shares that have been sold or otherwise transferred in violation of any of the provisions
of this Option Agreement or (ii) to treat as owner of such Shares or to accord the right to vote or
pay dividends to any purchaser or other transferee to whom such Shares shall have been so
transferred.

     12. Term of Option. The Option may be exercised no later than the Expiration Date
set forth in the Notice or such earlier date as otherwise provided herein.

     13. Tax Consequences. Set forth below is a brief summary as of the date of this
Option Agreement of some of the federal tax consequences of exercise of the Option and disposition
of the Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT
TO CHANGE. THE GRANTEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THE OPTION OR DISPOSING OF
THE SHARES.

          (a) Exercise of Incentive Stock Option. If the Option qualifies as an Incentive
Stock Option, there will be no regular federal income tax liability upon the exercise of the
Option, although the excess, if any, of the Fair Market Value of the Shares on the date of exercise
over the Exercise Price will be treated as income for purposes of the alternative minimum tax for
federal tax purposes and may subject the Grantee to the alternative minimum tax in the year of
exercise. However, the Internal Revenue Service issued proposed regulations which would subject the
Grantee to withholding at the time the Grantee exercises an Incentive Stock Option for Social
Security and Medicare taxes based upon the excess, if any, of the Fair Market Value of the Shares
on the date of exercise over the Exercise Price. These proposed regulations are subject to further
modification by the Internal Revenue Service and, if adopted, would be effective only for the
exercise of Incentive Stock Options on or after January 1, 2003.

          (b) Exercise of Incentive Stock Option Following Disability. If the Grantee’s
Continuous Service terminates as a result of Disability that is not total and permanent disability
as defined in Section 22(e)(3) of the Code, to the extent permitted on the date of termination, the
Grantee must exercise an Incentive Stock Option within three (3) months of such termination for the
Incentive Stock Option to be qualified as an Incentive Stock Option.

          (c) Exercise of Non-Qualified Stock Option. On exercise of a Non-Qualified Stock
Option, the Grantee will be treated as having received compensation income (taxable at ordinary
income tax rates) equal to the excess, if any, of the Fair Market Value of the Shares on the date
of exercise over the Exercise Price. If the Grantee is an Employee or a former Employee, the
Company will be required to withhold from the Grantee’s compensation or collect from the Grantee
and pay to the applicable taxing authorities an amount in cash equal to a percentage of this
compensation income at the time of exercise, and may refuse to honor the exercise and refuse to
deliver Shares if such withholding amounts are not delivered at the time of exercise.

 

 

          (d) Disposition of Shares. In the case of a Non-Qualified Stock Option, if Shares
are held for more than one year, any gain realized on disposition of the Shares will be treated as
long-term capital gain for federal income tax purposes and subject to tax at a maximum rate of 20%.
In the case of an Incentive Stock Option, if Shares transferred pursuant to the Option are held for
more than one year after receipt of the Shares and are disposed more than two years after the Date
of Award, any gain realized on disposition of the Shares also will be treated as capital gain for
federal income tax purposes and subject to the same tax rates and holding periods that apply to
Shares acquired upon exercise of a Non-Qualified Stock Option. If Shares purchased under an
Incentive Stock Option are disposed of prior to the expiration of such one-year or two-year
periods, any gain realized on such disposition will be treated as compensation income (taxable at
ordinary income rates) to the extent of the difference between the Exercise Price and the lesser of
(i) the Fair Market Value of the Shares on the date of exercise, or (ii) the sale price of the
Shares.

     14. Entire Agreement: Governing Law. The Notice, the Plan and this Option
Agreement constitute the entire agreement of the parties with respect to the subject matter hereof
and supersede in their entirety all prior undertakings and agreements of the Company and the
Grantee with respect to the subject matter hereof, and may not be modified adversely to the
Grantee’s interest except by means of a writing signed by the Company and the Grantee. Nothing in
the Notice, the Plan and this Option Agreement (except as expressly provided therein) is intended
to confer any rights or remedies on any persons other than the parties. The Notice, the Plan and
this Option Agreement are to be construed in accordance with and governed by the internal laws of
the State of California without giving effect to any choice of law rule that would cause the
application of the laws of any jurisdiction other than the internal laws of the State of California
to the rights and duties of the parties. Should any provision of the Notice, the Plan or this
Option Agreement be determined by a court of law to be illegal or unenforceable, such provision
shall be enforced to the fullest extent allowed by law and the other provisions shall nevertheless
remain effective and shall remain enforceable.

     15. Headings. The captions used in the Notice and this Option Agreement are
inserted for convenience and shall not be deemed a part of the Option for construction or
interpretation.

     16. Dispute Resolution. The provisions of this Section 16 shall be the exclusive
means of resolving disputes arising out of or relating to the Notice, the Plan and this Option
Agreement. The Company, the Grantee, and the Grantee’s assignees pursuant to Section 9 (the
“parties”) shall attempt in good faith to resolve any disputes arising out of or relating to the
Notice, the Plan and this Option Agreement by negotiation between individuals who have authority to
settle the controversy. Negotiations shall be commenced by either party by notice of a written
statement of the party’s position and the name and title of the individual who will represent the
party. Within thirty (30) days of the written notification, the parties shall meet at a mutually
acceptable time and place, and thereafter as often as they reasonably deem necessary, to resolve
the dispute. If the dispute has not been resolved by negotiation, the parties agree that any suit,
action, or proceeding arising out of or relating to the Notice, the Plan or this Option Agreement
shall be brought in the United States District Court for the Northern District of California (or
should such court lack jurisdiction to hear such action, suit or proceeding, in the Santa Clara
County Superior Court) and that the parties shall submit to the jurisdiction of such court. The
parties irrevocably waive, to the fullest extent permitted by law, any objection the party may have
to the laying of venue for any such suit, action or proceeding brought in such court. THE PARTIES
ALSO EXPRESSLY WAIVE ANY RIGHT THEY HAVE OR MAY

 

 

HAVE TO A JURY TRIAL OF ANY SUCH SUIT, ACTION OR PROCEEDING. If any one or more provisions of this
Section 16 shall for any reason be held invalid or unenforceable, it is the specific intent of the
parties that such provisions shall be modified to the minimum extent necessary to make it or its
application valid and enforceable.

     17. Notices. Any notice required or permitted hereunder shall be given in writing
and shall be deemed effectively given upon personal delivery or upon deposit in the United States
mail by certified mail (if the parties are within the United States) or upon deposit for delivery
by an internationally recognized express mail courier service (for international delivery of
notice), with postage and fees prepaid, addressed to the other party at its address as shown
beneath its signature in the Notice, or to such other address as such party may designate in
writing from time to time to the other party.

 

 

EXHIBIT A

STRATEX NETWORKS, INC. 2002 STOCK INCENTIVE PLAN

EXERCISE NOTICE

Stratex Networks, Inc.

170 Rose Orchard Way

San Jose, California 95134

Attention: Secretary

     1. Exercise
of Option. Effective as of today,                                         , ___ the
undersigned (the “Grantee”) hereby elects to exercise the Grantee’s option to purchase                                         
shares of the Common Stock (the “Shares”) of Stratex Networks, Inc. (the “Company”) under and
pursuant to the Company’s 2002 Stock Incentive Plan, as amended from time to time (the “Plan”) and
the [ ] Incentive [ ] Non-Qualified Stock Option Award Agreement (the “Option Agreement”) and
Notice of Stock Option Award (the “Notice”) dated                                         ,                     . Unless otherwise
defined herein, the terms defined in the Plan shall have the same defined meanings in this Exercise
Notice.

     2. Representations of the Grantee. The Grantee acknowledges that the Grantee has
received, read and understood the Notice, the Plan and the Option Agreement and agrees to abide by
and be bound by their terms and conditions.

     3. Rights as Stockholder. Until the stock certificate evidencing such Shares is
issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized
transfer agent of the Company), no right to vote or receive dividends or any other rights as a
stockholder shall exist with respect to the Shares, notwithstanding the exercise of the Option. The
Company shall issue (or cause to be issued) such stock certificate promptly after the Option is
exercised. No adjustment will be made for a dividend or other right for which the record date is
prior to the date the stock certificate is issued, except as provided in Section 10 of the Plan.

     4. Delivery of Payment. The Grantee herewith delivers to the Company the full
Exercise Price for the Shares, which, to the extent selected, shall be deemed to be satisfied by
use of the broker-dealer sale and remittance procedure to pay the Exercise Price provided in
Section 4(d) of the Option Agreement.

     5. Tax Consultation. The Grantee understands that the Grantee may suffer adverse
tax consequences as a result of the Grantee’s purchase or disposition of the Shares. The Grantee
represents that the Grantee has consulted with any tax consultants the Grantee deems advisable in
connection with the purchase or disposition of the Shares and that the Grantee is not relying on
the Company for any tax advice

     6. Taxes. The Grantee agrees to satisfy all applicable federal, state and local
income and employment tax withholding obligations and herewith delivers to the Company the full
amount of

 

 

such obligations or has made arrangements acceptable to the Company to satisfy such obligations. In
the case of an Incentive Stock Option, the Grantee also agrees, as partial consideration for the
designation of the Option as an Incentive Stock Option, to notify the Company in writing within
thirty (30) days of any disposition of any shares acquired by exercise of the Option if such
disposition occurs within two (2) years from the Date of Award or within one (1) year from the date
the Shares were transferred to the Grantee. If the Company is required to satisfy any federal,
state or local income or employment tax withholding obligations as a result of such an early
disposition, the Grantee agrees to satisfy the amount of such withholding in a manner that the
Administrator prescribes.

     7. Successors and Assigns. The Company may assign any of its rights under this
Exercise Notice to single or multiple assignees, and this agreement shall inure to the benefit of
the successors and assigns of the Company. This Exercise Notice shall be binding upon the Grantee
and his or her heirs, executors, administrators, successors and assigns.

     8. Headings. The captions used in this Exercise Notice are inserted for
convenience and shall not be deemed a part of this agreement for construction or interpretation.

     9. Dispute Resolution. The provisions of Section 16 of the Option Agreement
shall be the exclusive means of resolving disputes arising out of or relating to this Exercise
Notice.

     10. Governing Law; Severability. This Exercise Notice is to be construed in
accordance with and governed by the internal laws of the State of California without giving effect
to any choice of law rule that would cause the application of the laws of any jurisdiction other
than the internal laws of the State of California to the rights and duties of the parties. Should
any provision of this Exercise Notice be determined by a court of law to be illegal or
unenforceable, such provision shall be enforced to the fullest extent allowed by law and the other
provisions shall nevertheless remain effective and shall remain enforceable.

     11. Notices. Any notice required or permitted hereunder shall be given in writing
and shall be deemed effectively given upon personal delivery or upon deposit in the United States
mail by certified mail, (if the parties are within the United States) or upon deposit for delivery
by an internationally recognized express mail courier service (for international delivery of
notice) with postage and fees prepaid, addressed to the other party at its address as shown below
beneath its signature, or to such other address as such party may designate in writing from time to
time to the other party.

     12. Further Instruments. The parties agree to execute such further instruments
and to take such further action as may be reasonably necessary to carry out the purposes and intent
of this agreement.

     13. Entire Agreement. The Notice, the Plan, and the Option Agreement are
incorporated herein by reference, and together with this Exercise Notice constitute the entire
agreement of the parties with respect to the subject matter hereof and supersede in their entirety
all prior undertakings and agreements of the Company and the Grantee with respect to the subject
matter hereof, and may not be modified adversely to the Grantee’s interest except by means of a
writing signed by the Company and the Grantee. Nothing in the Notice, the Plan, the Option
Agreement and this Exercise

 

 

Notice (except as expressly provided therein) is intended to confer any rights or remedies on any
persons other than the parties.

	 	 	 	 	 	 	 
	Submitted by:	 	 	 	Accepted by:
	 
	 	 	 	 	 	 
	GRANTEE:	 	 	 	STRATEX NETWORKS, INC.
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	
Title:	 	 
	 

	 	 	 	 	 	 
	(Signature)
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Address:	 	 	 	Address:
	 
	 	 	 	 	 	 
	 	 	 	 	170 Rose Orchard Way

	 	 	 	 	San Jose, California 95134

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