Document:

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                                                                   EXHIBIT 10.1

                             JUNIPER NETWORKS, INC.

                        1999 EMPLOYEE STOCK PURCHASE PLAN
                      (AS AMENDED THROUGH JANUARY 1, 2002)

        1. Purpose. The purpose of the Plan is to provide employees of the
Company and its Designated Subsidiaries with an opportunity to purchase Common
Stock of the Company through accumulated payroll deductions. It is the intention
of the Company to have the Plan qualify as an "Employee Stock Purchase Plan"
under Section 423 of the Internal Revenue Code of 1986, as amended. The
provisions of the Plan, accordingly, shall be construed so as to extend and
limit participation in a manner consistent with the requirements of that section
of the Code.

        2. Definitions.

           (a) "Board" shall mean the Board of Directors of the Company.

           (b) "Code" shall mean the Internal Revenue Code of 1986, as amended.

           (c) "Common Stock" shall mean the Common Stock of the Company.

           (d) "Company" shall mean Juniper Networks, Inc., and any Designated
Subsidiary of the Company.

           (e) "Compensation" shall mean all base straight time gross earnings
and commissions, exclusive of payments for overtime, shift premium, incentive
compensation, incentive payments, bonuses, sales commission, and other
compensation.

           (f) "Designated Subsidiary" shall mean any Subsidiary which has been
designated by the Board from time to time in its sole discretion as eligible to
participate in the Plan.

           (g) "Employee" shall mean any individual who is an Employee of the
Company for tax purposes whose customary employment with the Company is at least
twenty (20) hours per week and more than five (5) months in any calendar year.
For purposes of the Plan, the employment relationship shall be treated as
continuing intact while the individual is on sick leave or other leave of
absence approved by the Company. Where the period of leave exceeds 90 days and
the individual's right to reemployment is not guaranteed either by statute or by
contract, the employment relationship shall be deemed to have terminated on the
91st day of such leave.

           (h) "Enrollment Date" shall mean the first day of each Offering
Period.

           (i) "Exercise Date" shall mean the last day of each Offering Period.

           (j) "Fair Market Value" shall mean, 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 SmallCap 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 for
the last market trading day on the date of such determination, as reported in
The Wall Street Journal or such other source as the Board deems reliable; or

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

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

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

           (k) "Offering Period" shall mean a period of approximately six (6)
months during which an option granted pursuant to the Plan may be exercised,
commencing on the first Trading Day on or after February 1 and terminating on
the last Trading Day in the period ending the following July 31, or commencing
on the first Trading Day on or after August 1 and terminating on the last
Trading Day in the period ending the following January 31; provided, however,
that the first Offering Period under the Plan shall commence with the first
Trading Day on or after the date on which the Securities and Exchange Commission
declares the Company's Registration Statement effective and ending on the last
Trading Day on or before July 31, 2000 and the second Offering Period shall
commence with the first Trading Day on or after February 1, 2000 and ending on
the last Trading Day on or before July 31, 2000. The duration of Offering
Periods may be changed pursuant to Section 4 of this Plan.

           (l) "Plan" shall mean this Employee Stock Purchase Plan.

           (m) "Purchase Price" shall mean an amount equal to 85% of the Fair
Market Value of a share of Common Stock on the Enrollment Date or on the
Exercise Date, whichever is lower; provided, however, that the Purchase Price
may be adjusted by the Board pursuant to Section 20.

           (n) "Reserves" shall mean the number of shares of Common Stock
covered by each option under the Plan which have not yet been exercised and the
number of shares of Common Stock which have been authorized for issuance under
the Plan but not yet placed under option.

           (o) "Subsidiary" shall mean a corporation, domestic or foreign, of
which not less than 50% of the voting shares are held by the Company or a
Subsidiary, whether or not such corporation now exists or is hereafter organized
or acquired by the Company or a Subsidiary.

           (p) "Trading Day" shall mean a day on which national stock exchanges
and the Nasdaq System are open for trading.

        3. Eligibility.

           (a) Any Employee who shall be employed by the Company on a given
Enrollment Date shall be eligible to participate in the Plan.

           (b) Any provisions of the Plan to the contrary notwithstanding, no
Employee shall be granted an option under the Plan (i) to the extent that,
immediately after the grant, such Employee (or any other

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person whose stock would be attributed to such Employee pursuant to Section
424(d) of the Code) would own capital stock of the Company and/or hold
outstanding options to purchase such stock possessing five percent (5%) or more
of the total combined voting power or value of all classes of the capital stock
of the Company or of any Subsidiary, or (ii) to the extent that his or her
rights to purchase stock under all employee stock purchase plans of the Company
and its subsidiaries accrues at a rate which exceeds Twenty-Five Thousand
Dollars ($25,000) worth of stock (determined at the fair market value of the
shares at the time such option is granted) for each calendar year in which such
option is outstanding at any time.

        4. Offering Periods. The Plan shall be implemented by consecutive
Offering Periods with a new Offering Period commencing on the first Trading Day
on or after February 1 and August 1 each year, or on such other date as the
Board shall determine, and continuing thereafter until terminated in accordance
with Section 20 hereof; provided, however, that the first Offering Period under
the Plan shall commence with the first Trading Day on or after the date on which
the Securities and Exchange Commission declares the Company's Registration
Statement effective and ending on the last Trading Day on or before July 31,
2000 and the second Offering Period shall commence with the first Trading Day on
or after February 1, 2000 and ending on the last Trading Day on or before July
31, 2000. The Board shall have the power to change the duration of Offering
Periods (including the commencement dates thereof) with respect to future
offerings without stockholder approval if such change is announced at least five
(5) days prior to the scheduled beginning of the first Offering Period to be
affected thereafter.

        5. Participation.

           (a) An eligible Employee may become a participant in the Plan by
completing a subscription agreement authorizing payroll deductions in the form
of Exhibit A to this Plan and filing it with the Company's payroll office on or
prior to the applicable Enrollment Date.

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

       6. Payroll Deductions.

           (a) At the time a participant files his or her subscription
agreement, he or she shall elect to have payroll deductions made on each pay day
during the Offering Period in an amount not exceeding ten percent (10%) of the
Compensation which he or she receives on each pay day during the Offering
Period.

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

           (c) A participant may discontinue his or her participation in the
Plan as provided in Section 10 hereof, or may increase or decrease the rate of
his or her payroll deductions during the Offering Period by completing or filing
with the Company a new subscription agreement authorizing a change in payroll
deduction rate. The Board may, in its discretion, limit the number of
participation rate changes during any Offering Period. The change in rate shall
be effective with the first full payroll period following five (5) business days
after the Company's receipt of the new subscription agreement. A participant's
subscription

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agreement shall remain in effect for successive Offering Periods unless
terminated as provided in Section 10 hereof.

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

           (e) At the time the option is exercised, in whole or in part, or at
the time some or all of the Company's Common Stock issued under the Plan is
disposed of, the participant must make adequate provision for the Company's
federal, state, or other tax withholding obligations, if any, which arise upon
the exercise of the option or the disposition of the Common Stock. At any time,
the Company may, but shall not be obligated to, withhold from the participant's
compensation the amount necessary for the Company to meet applicable withholding
obligations, including any withholding required to make available to the Company
any tax deductions or benefits attributable to sale or early disposition of
Common Stock by the Employee.

        7. Grant of Option. On the Enrollment Date of each Offering Period, each
eligible Employee participating in such Offering Period shall be granted an
option to purchase on the Exercise Date of such Offering Period (at the
applicable Purchase Price) up to a number of shares of the Company's Common
Stock determined by dividing such Employee's payroll deductions accumulated
prior to such Exercise Date and retained in the Participant's account as of the
Exercise Date by the applicable Purchase Price; provided that in no event shall
an Employee be permitted to purchase during any twelve (12) month period more
than six thousand (6,000) shares (subject to any adjustment pursuant to Section
19), and provided further that such purchase shall be subject to the limitations
set forth in Sections 3(b) and 12 hereof. Exercise of the option shall occur as
provided in Section 8 hereof, unless the participant has withdrawn pursuant to
Section 10 hereof. The Option shall expire on the last day of the Offering
Period.

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

        9. Delivery. As promptly as practicable after each Exercise Date on
which a purchase of shares occurs, the Company shall arrange the delivery to
each participant, as appropriate, the shares purchased upon exercise of his or
her option.

        10. Withdrawal.

            (a) A participant may withdraw all but not less than all the payroll
deductions credited to his or her account and not yet used to exercise his or
her option under the Plan at any time by giving written notice to the Company in
the form of Exhibit B to this Plan. All of the participant's payroll deductions

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credited to his or her account shall be paid to such participant promptly after
receipt of notice of withdrawal and such participant's option for the Offering
Period shall be automatically terminated, and no further payroll deductions for
the purchase of shares shall be made for such Offering Period. If a participant
withdraws from an Offering Period, payroll deductions shall not resume at the
beginning of the succeeding Offering Period unless the participant delivers to
the Company a new subscription agreement.

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

        11. Termination of Employment. Upon a participant's ceasing to be an
Employee for any reason, he or she shall be deemed to have elected to withdraw
from the Plan and the payroll deductions credited to such participant's account
during the Offering Period but not yet used to exercise the option shall be
returned to such participant or, in the case of his or her death, to the person
or persons entitled thereto under Section 15 hereof, and such participant's
option shall be automatically terminated. The preceding sentence
notwithstanding, a participant who receives payment in lieu of notice of
termination of employment shall be treated as continuing to be an Employee for
the participant's customary number of hours per week of employment during the
period in which the participant is subject to such payment in lieu of notice.

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

        13. Stock.

            (a) Subject to adjustment upon changes in capitalization of the
Company as provided in Section 19 hereof, the maximum number of shares of the
Company's Common Stock which shall be made available for sale under the Plan
shall be twelve million (12,000,000) shares, plus an annual increase to be added
on the first day of the Company's fiscal year beginning in 2000 equal to the
lesser of (i) 3,000,000 shares, (ii) 1% of the outstanding shares on such date
or (iii) a lesser amount determined by the Board. If, on a given Exercise Date,
the number of shares with respect to which options are to be exercised exceeds
the number of shares then available under the Plan, the Company shall make a pro
rata allocation of the shares remaining available for purchase in as uniform a
manner as shall be practicable and as it shall determine to be equitable.

            (b) The participant shall have no interest or voting right in shares
covered by his option until such option has been exercised.

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

        14. Administration. The Plan shall be administered by the Board or a
committee of members of the Board appointed by the Board. The Board or its
committee shall have full and exclusive discretionary authority to construe,
interpret and apply the terms of the Plan, to determine eligibility and to
adjudicate all disputed claims filed under the Plan. Every finding, decision and
determination made by the Board or its committee shall, to the full extent
permitted by law, be final and binding upon all parties.

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        15. Designation of Beneficiary.

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

            (b) Such designation of beneficiary may be changed by the
participant at any time by written notice. In the event of the death of a
participant and in the absence of a beneficiary validly designated under the
Plan who is living at the time of such participant's death, the Company shall
deliver such shares and/or cash to the executor or administrator of the estate
of the participant, or if no such executor or administrator has been appointed
(to the knowledge of the Company), the Company, in its discretion, may deliver
such shares and/or cash to the spouse or to any one or more dependents or
relatives of the participant, or if no spouse, dependent or relative is known to
the Company, then to such other person as the Company may designate.

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

        17. Use of Funds. All payroll deductions received or held by the Company
under the Plan may be used by the Company for any corporate purpose, and the
Company shall not be obligated to segregate such payroll deductions.

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

        19. Adjustments Upon Changes in Capitalization, Dissolution,
Liquidation, Merger or Asset Sale.

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

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issuance by the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, shall affect, and no adjustment
by reason thereof shall be made with respect to, the number or price of shares
of Common Stock subject to an option.

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

            (c) Merger or Asset Sale. In the event of a proposed sale of all or
substantially all of the assets of the Company, or the merger of the Company
with or into another corporation, each outstanding option shall be assumed or an
equivalent option substituted by the successor corporation or a Parent or
Subsidiary of the successor corporation. In the event that the successor
corporation refuses to assume or substitute for the option, the Offering Period
then in progress shall be shortened by setting a new Exercise Date (the "New
Exercise Date"). The New Exercise Date shall be before the date of the Company's
proposed sale or merger. The Board shall notify each participant in writing, at
least ten (10) business days prior to the New Exercise Date, that the Exercise
Date for the participant's option has been changed to the New Exercise Date and
that the participant's option shall be exercised automatically on the New
Exercise Date, unless prior to such date the participant has withdrawn from the
Offering Period as provided in Section 10 hereof.

        20. Amendment or Termination.

            (a) The Board of Directors of the Company may at any time and for
any reason terminate or amend the Plan. Except as provided in Section 19 hereof,
no such termination can affect options previously granted, provided that an
Offering Period may be terminated by the Board of Directors on any Exercise Date
if the Board determines that the termination of the Offering Period or the Plan
is in the best interests of the Company and its stockholders. Except as provided
in Section 19 and Section 20 hereof, no amendment may make any change in any
option theretofore granted which adversely affects the rights of any
participant. To the extent necessary to comply with Section 423 of the Code (or
any other applicable law, regulation or stock exchange rule), the Company shall
obtain shareholder approval in such a manner and to such a degree as required.

            (b) Without stockholder consent and without regard to whether any
participant rights may be considered to have been "adversely affected," the
Board (or its committee) shall be entitled to change the Offering Periods, limit
the frequency and/or number of changes in the amount withheld during an Offering
Period, establish the exchange ratio applicable to amounts withheld in a
currency other than U.S. dollars, permit payroll withholding in excess of the
amount designated by a participant in order to adjust for delays or mistakes in
the Company's processing of properly completed withholding elections, establish
reasonable waiting and adjustment periods and/or accounting and crediting
procedures to ensure that amounts applied toward the purchase of Common Stock
for each participant properly correspond with amounts withheld from

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the participant's Compensation, and establish such other limitations or
procedures as the Board (or its committee) determines in its sole discretion
advisable which are consistent with the Plan.

            (c) In the event the Board determines that the ongoing operation of
the Plan may result in unfavorable financial accounting consequences, the Board
may, in its discretion and, to the extent necessary or desirable, modify or
amend the Plan to reduce or eliminate such accounting consequence including, but
not limited to:

                  (i) altering the Purchase Price for any Offering Period
including an Offering Period underway at the time of the change in Purchase
Price;

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

                  (iii) allocating shares.

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

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

        22. Conditions Upon Issuance of Shares. Shares shall not be issued with
respect to an option unless the exercise of such option and the issuance and
delivery of such shares pursuant thereto shall comply with all applicable
provisions of law, domestic or foreign, including, without limitation, the
Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as
amended, the rules and regulations promulgated thereunder, and the requirements
of any stock exchange upon which the shares may then be listed, and shall be
further subject to the approval of counsel for the Company with respect to such
compliance.

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

        23. Term of Plan. The Plan shall become effective upon the earlier to
occur of its adoption by the Board of Directors or its approval by the
stockholders of the Company. It shall continue in effect for a term of ten (10)
years unless sooner terminated under Section 20 hereof.

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                                    EXHIBIT A

                             JUNIPER NETWORKS, INC.

                        1999 EMPLOYEE STOCK PURCHASE PLAN

                             SUBSCRIPTION AGREEMENT

_____ Original Application                     Enrollment Date: _______________
_____ Change in Payroll Deduction Rate
_____ Change of Beneficiary(ies)

1.      _____________________________________ hereby elects to participate in
        the Juniper Networks, Inc., 1999 Employee Stock Purchase Plan (the
        "Employee Stock Purchase Plan") and subscribes to purchase shares of the
        Company's Common Stock in accordance with this Subscription Agreement
        and the Employee Stock Purchase Plan.

2.      I hereby authorize payroll deductions from each paycheck in the amount
        of ____% of my Compensation on each payday (from 1 to 10%) during the
        Offering Period in accordance with the Employee Stock Purchase Plan.
        (Please note that no fractional percentages are permitted.)

3.      I understand that said payroll deductions shall be accumulated for the
        purchase of shares of Common Stock at the applicable Purchase Price
        determined in accordance with the Employee Stock Purchase Plan. I
        understand that if I do not withdraw from an Offering Period, any
        accumulated payroll deductions will be used to automatically exercise my
        option.

4.      I have received a copy of the complete Employee Stock Purchase Plan. I
        understand that my participation in the Employee Stock Purchase Plan is
        in all respects subject to the terms of the Plan. I understand that my
        ability to exercise the option under this Subscription Agreement is
        subject to stockholder approval of the Employee Stock Purchase Plan.

5.      Shares purchased for me under the Employee Stock Purchase Plan should be
        issued in the name(s) of (Employee or Employee and Spouse
        only):____________________________.

6.      I understand that if I dispose of any shares received by me pursuant to
        the Plan within 2 years after the Enrollment Date (the first day of the
        Offering Period during which I purchased such shares), I will be treated
        for federal income tax purposes as having received ordinary income at
        the time of such disposition in an amount equal to the excess of the
        fair market value of the shares at the time such shares were purchased
        by me over the price which I paid for the shares. I hereby agree to
        notify the Company in writing within 30 days after the date of any
        disposition of shares and I will make adequate provision for Federal,
        state or other tax

                                      A-1
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        withholding obligations, if any, which arise upon the disposition of the
        Common Stock. The Company may, but will not be obligated to, withhold
        from my compensation the amount necessary to meet any applicable
        withholding obligation including any withholding necessary to make
        available to the Company any tax deductions or benefits attributable to
        sale or early disposition of Common Stock by me. If I dispose of such
        shares at any time after the expiration of the 2-year holding period, I
        understand that I will be treated for federal income tax purposes as
        having received income only at the time of such disposition, and that
        such income will be taxed as ordinary income only to the extent of an
        amount equal to the lesser of (1) the excess of the fair market value of
        the shares at the time of such disposition over the purchase price which
        I paid for the shares, or (2) 15% of the fair market value of the shares
        on the first day of the Offering Period. The remainder of the gain, if
        any, recognized on such disposition will be taxed as capital gain.

7.      I hereby agree to be bound by the terms of the Employee Stock Purchase
        Plan. The effectiveness of this Subscription Agreement is dependent upon
        my eligibility to participate in the Employee Stock Purchase Plan.

8.      In the event of my death, I hereby designate the following as my
        beneficiary(ies) to receive all payments and shares due me under the
        Employee Stock Purchase Plan:

NAME:  (Please print)__________________________________________________________
                          (First)              (Middle)                  (Last)

___________________________                    ________________________________
Relationship

                                               ________________________________

                                               ________________________________
                                               (Address)

Employee's Social
Security Number:                               ________________________________

Employee's Address:                            ________________________________

                                               ________________________________

                                      A-2

<PAGE>

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

Dated: __________________                    __________________________________
                                             Signature of Employee

                                             __________________________________
                                             Spouse's Signature
                                             (If beneficiary other than spouse)

                                      A-3
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                                    EXHIBIT B

                             JUNIPER NETWORKS, INC.

                        1999 EMPLOYEE STOCK PURCHASE PLAN

                              NOTICE OF WITHDRAWAL

        The undersigned participant in the Offering Period of the Juniper
Networks, Inc., 1999 Employee Stock Purchase Plan which began on ___________,
______ (the "Enrollment Date") hereby notifies the Company that he or she hereby
withdraws from the Offering Period. He or she hereby directs the Company to pay
to the undersigned as promptly as practicable all the payroll deductions
credited to his or her account with respect to such Offering Period. The
undersigned understands and agrees that his or her option for such Offering
Period will be automatically terminated. The undersigned understands further
that no further payroll deductions will be made for the purchase of shares in
the current Offering Period and the undersigned shall be eligible to participate
in succeeding Offering Periods only by delivering to the Company a new
Subscription Agreement.

                                        Name and Address of Participant:

                                        _______________________________________

                                        _______________________________________

                                        _______________________________________

                                        Signature:

                                        _______________________________________

                                        Date:__________________________________<PAGE>

                                                                    EXHIBIT 10.1

                            UNISPHERE NETWORKS, INC.

              SECOND AMENDED AND RESTATED 1999 STOCK INCENTIVE PLAN

1.      Purpose

        The purpose of this Second Amended and Restated 1999 Stock Incentive
Plan (the "Plan") of Unisphere Networks, Inc. ("Unisphere"), a Delaware
corporation (the "Company"), is to advance the interests of the Company's
stockholders by enhancing the Company's ability to attract, retain and motivate
persons who make (or are expected to make) important contributions to the
Company by providing such persons with equity ownership opportunities and
performance-based incentives and thereby better aligning the interest of such
persons with those of the Company's stockholders. Except where the context
otherwise requires (but in no event for purposes of Section 3), the term
"Company" shall include (a) any present or future "subsidiary" corporations of
Unisphere Networks, Inc. as defined in Section 424(f) of the Internal Revenue
Code of 1986, as amended, and any regulations promulgated thereunder (the
"Code"), (b) to the extent permitted by the Board of Directors of the Company
(the "Board") in an Award (as hereinafter defined) or otherwise, any present or
future parent corporation of the Company as defined in Section 424(e) of the
Code and (c) to the extent permitted by the Board in an Award or otherwise, any
present or future majority-owned subsidiary corporation of any parent
corporation of the Company.

2.      Eligibility

        All of the Company's employees, officers, directors, consultants and
advisors are eligible to be granted options, restricted stock, or other
stock-based awards (each, an "Award"), provided that such person is an
individual who would qualify to receive an Award under Rule 701 of the
Securities Act of 1933, as amended (the "Securities Act"), under the Plan. Any
person who has been granted an Award under the Plan shall be deemed a
"Participant."

3.      Administration, Delegation

        (a) Administration by Board of Directors. The Plan will be administered
by the Board. The Board shall have authority to grant Awards and to adopt, amend
and repeal such administrative rules, guidelines and practices relating to the
Plan as it shall deem advisable. The Board may correct any defect, supply any
omission or reconcile any inconsistency in the Plan or any Award. The Board may
interpret the Plan and the Awards, as well as any rules, guidelines and
practices, with such interpretation to be accorded the maximum deference
permitted by law. All decisions by the Board shall be made in the Board's sole
discretion and shall be final and binding on all persons having or claiming any
interest in the Plan or in any Award. No director or person acting pursuant to
the authority delegated by the Board shall be liable for any action or
determination relating to or under the Plan made in good faith.

        (b) Recommendations of Chief Executive Officer. The Chief Executive
Officer of the Company may make recommendations to the Board with respect to the
grant of Awards, and the Board shall give due consideration to such
recommendations. The express provisions of this Section 3(b) shall be of no
force or effect at such times as the Company has a class of equity securities
which is registered pursuant to Section 12 of the Securities Exchange Act of
1934, as amended (the "Exchange Act").

        (c) Appointment of Committees. To the extent permitted by applicable
law, the Board may delegate any or all of its powers under the Plan to one or
more committees or subcommittees of the Board (a "Committee"). If and when the
Company has a class of equity securities which is registered under the Exchange
Act, any such Committee shall consist of not less than two members, each member
of which

<PAGE>

shall be a "non-employee director" as defined in Rule 16b-3 promulgated under
the Exchange Act and shall (to the extent relief from the limitation of Section
162(m) of the Code is sought with respect to Awards) qualify as "outside
directors" for purposes of Section 162(m) of the Code. All references in the
Plan to the "Board" shall mean (i) the Board or (ii) a Committee to the extent
that the Board's powers or authority under the Plan have been delegated to such
Committee under this Section 3(c).

4.      Stock Available for Awards

        (a) Number of Shares. Subject to adjustment under Section 8(e) or 8(f),
Awards may be made under the Plan for an initial issuance of up to 29,227,328
shares of common stock, $0.01 par value per share ("Common Stock") of the
Company, to be increased annually on April 1st of each year, beginning in 2002,
by a number equal to the lesser of (i) 5% of the outstanding shares of Common
Stock on the last trading day in March, (ii) 7,000,000 shares of Common Stock,
or (iii) such amount as is determined by the Board, all of which may be
available for Awards of Options (as hereinafter defined). The aggregate number
of shares available for grant under the Plan, subject to adjustment under
Section 8(e) or 8(f), shall be 37,076,226 shares. If any Award expires or is
terminated, surrendered or canceled without having been fully exercised or is
forfeited in whole or in part or results in any Common Stock not being issued,
the unused Common Stock covered by such Award shall again be available for the
grant of Awards under the Plan, subject, however, in the case of Incentive Stock
Options (as hereinafter defined), to any limitation required under the Code.
Shares issued under the Plan may consist in whole or in part of authorized but
unissued shares of treasury shares.

        (b) Per-Participant Limit. Subject to adjustment under Section 8(e) or
8(f), for Awards granted at or after such time as the Company is subject to
Section 162(m) of the Code, the maximum number of shares with respect to which
an Award may be granted to any Participant under the Plan shall be 2,720,000 per
calendar year. The per-Participant limit described in this Section 4(b) shall be
construed and applied consistently with Section 162(m) of the Code.

5.      Stock Options

        (a) General. The Board may grant options to purchase Common Stock (each,
an "Option") and determine the number of shares of Common Stock to be covered by
each Option, the exercise price of each Option and the conditions and
limitations applicable to the exercise of each Option, including conditions
relating to applicable federal or state securities laws, as it considers
necessary or advisable. An Option which is not intended to be an Incentive Stock
Option (as hereinafter defined) shall be designated a "Nonstatutory Stock
Option".

        (b) Incentive Stock Options. An Option that the Board intends to be an
"incentive stock option" as defined in Section 422 of the Code (an "Incentive
Stock Option") shall be identified as such, shall be subject to and shall be
construed consistently with the requirements of Section 422 of the Code and
shall only be granted to employees of Unisphere or its subsidiary corporations
as defined in Section 424(f) of the Code, or, to the extent permitted by the
Board in an Option Award Agreement or otherwise, any parent corporation of
Unisphere. The Company shall have no liability to a Participant, or any other
party, if an Option (or any part thereof) which is intended to be an Incentive
Stock Option is not an Incentive Stock Option.

        (c) Exercise Price. The Board shall establish the exercise price at the
time each Option is granted and specify it in the applicable Option award
agreement (the "Option Award Agreement"). In the case of any Option intended to
qualify for special relief for options from the limitation of Section 162(m) of
the Code, the exercise price of such Option shall be not less than 100% of the
Fair Market Value of a share of Common Stock on the day the Option is granted;
and the exercise price with respect to each Incentive Stock Option shall not be
less than 100% (or 110%, in the case of an individual described in

                                       2
<PAGE>

Section 422(b)(6) of the Code (relating to certain 10% owners)) of the Fair
Market Value (as hereinafter defined) of a share of Common Stock on the day the
Option is granted.

        For purposes of the Plan, "Fair Market Value" per share of Common Stock
as of a particular date means (i) if shares of Common Stock (including, for
purposes of this paragraph, American Depository Receipts (or any similar
security) in respect thereof) are then listed on a national stock exchange, the
closing sales price per share of Common Stock on the exchange for the last
preceding date on which there was a sale of shares of Common Stock on such
exchange, as determined by the Board, (ii) if shares of Common Stock are not
then listed on a national stock exchange but are then traded on an
over-the-counter market, the average of the closing bid and asked prices for the
shares of Common Stock in such over-the-counter market for the last preceding
date on which there was a sale of such shares of Common Stock in such market, as
determined by the Board, or (iii) if shares of Common Stock are not then listed
on a national stock exchange or traded on an over-the-counter market, such value
as the Board in its discretion may in good faith determine; provided that, where
the shares of Common Stock are so listed or traded, the Board may make such
discretionary determinations where the shares of Common Stock have not been
traded for 10 trading days.

        (d) Duration of Options. Unless earlier expired, forfeited or otherwise
terminated, each Option shall expire in its entirety upon the tenth anniversary
of the date of grant or shall have such other term as is set forth in the
applicable Option Award Agreement (except that, in the case of an individual
described in Section 422(b)(6) of the Code (relating to certain 10% owners) who
is granted an Incentive Stock Option, the term of such Option shall be no more
than five years from the date of grant).

        (e) Exercise of Option. Options may be exercised only by delivery to the
Company of a written notice of exercise signed by the proper person together
with payment in full as specified in Section 5(h) for the number of shares for
which the Option is exercised.

        (f) Incentive Stock Option Annual Limitation. The aggregate Fair Market
Value, determined as of the date an Option is granted, of the Common Stock for
which any Participant may be awarded Incentive Stock Options which are first
exercisable by the Participant during any calendar year under the Plan (or any
other stock option plan required to be taken into account under Section 422(d)
of the Code) shall not exceed $100,000.

        (g) Disqualifying Disposition. If shares of Common Stock acquired upon
exercise of an Incentive Stock Option are disposed of in a disqualifying
disposition within the meaning of Section 422 of the Code by a Participant or,
if applicable, a permitted successor of the Participant, prior to the expiration
of either two years from the date of grant of such Option or one year from the
transfer of shares of Common Stock to the Participant pursuant to the exercise
of such Option, or in any other disqualifying disposition within the meaning of
Section 422 of the Code, such Participant, or, if applicable, such successor,
shall notify the Company in writing as soon as practicable thereafter of the
date and terms of such disposition and, if the Company (or any affiliate
thereof) thereupon has a tax-withholding obligation, shall pay to the Company
(or such affiliate) an amount equal to any withholding tax the Company (or
affiliate) is required to pay as a result of the disqualifying disposition.

        (h) Payment Upon Exercise. Common Stock purchased upon the exercise of
an Option granted under the Plan shall be paid for as follows:

            (1) in cash or by check, payable to the order of the Company;

            (2) to the extent permitted by the Board in an Option Award
Agreement or otherwise, by delivery of an irrevocable and unconditional
undertaking by a creditworthy broker to deliver promptly to the Company
sufficient funds to pay the exercise price, or delivery by the Participant to
the Company of a copy of irrevocable and unconditional instructions to a
creditworthy broker to deliver promptly to the Company cash or a check
sufficient to pay the exercise price;

                                       3
<PAGE>

            (3) to the extent permitted by the Board in an Option Award
Agreement or otherwise, by (A) delivery of shares of Common Stock owned by the
Participant valued at their Fair Market Value, which Common Stock was owned by
the Participant at least six months prior to such delivery, (B) delivery of a
promissory note of the Participant to the Company on terms determined by the
Board, or (C) payment of such other lawful consideration as the Board may
determine; or

            (4) by any combination of the above permitted forms of payment.

6.      Restricted Stock

        (a) Grants. The Board may grant Awards entitling recipients to acquire
shares of Common Stock, subject to the right of the Company to require
forfeiture of such shares (or to repurchase all or part of such shares at their
issue price or other stated or formula price, if applicable) from the recipient
in the event that conditions specified by the Board in the applicable Award are
not satisfied prior to the end of the applicable restriction period or periods
established by the Board for such Award (each, a "Restricted Stock Award").

        (b) Terms and Conditions. The Board shall determine the terms and
conditions of any such Restricted Stock Award, including the conditions for
repurchase (or forfeiture) and the issue price, if any. Any stock certificates
issued in respect of a Restricted Stock Award shall be registered in the name of
the Participant and, unless otherwise determined by the Board, deposited by the
Participant, together with a stock power endorsed in blank, with the Company (or
its designee). At the expiration of the applicable restriction periods, the
Company (or such designee) shall deliver the certificates no longer subject to
such restrictions to the Participant or if the Participant has died, to the
beneficiary designated, in a manner determined by the Board, by a Participant to
receive amounts due or exercise rights of the Participant in the event of the
Participant's death (the "Designated Beneficiary"). In the absence of an
effective designation by a Participant, Designated Beneficiary shall mean the
Participant's estate.

7.      Other Stock-Based Awards

        The Board shall have the right to grant other Awards based upon the
Common Stock having such terms and conditions as the Board may determine,
including the grant of shares based upon certain conditions and the grant of
securities convertible into Common Stock.

8.      General Provisions Applicable to Awards

        (a) Transferability of Awards. Awards shall not be sold, assigned,
transferred, pledged or otherwise encumbered by the person to whom they are
granted, either voluntarily or by operation of law, except by will or the laws
of descent and distribution, and, during the life of the Participant, shall be
exercisable only by the Participant. Without limiting the foregoing, any
transfer of the underlying Common Stock of an Award, if permitted by Unisphere,
shall be so transferable only to Unisphere for value, or pursuant to death,
domestic relations orders and transfers by gift or domestic relations orders to
persons enumerated under Rule 701 of the Securities Act (other than in
connection with certain corporate events described herein or a registered public
offering). References to a Participant, to the extent relevant in the context,
shall include references to authorized transferees.

        (b) Documentation. Each Award under the Plan shall be evidenced by a
written instrument in such form as the Board shall determine. Each Award may
contain terms and conditions in addition to those set forth in the Plan. The
certificates for shares issued hereunder may include any legend which the Board
deems appropriate to reflect any restriction on transfer hereunder or under an
Award or as the Board may otherwise deem appropriate. Without limiting any other
provision of the Plan, each Participant shall take whatever additional actions
and execute whatever additional documents the Company may in its reasonable
judgment deem necessary or advisable in order to carry or effect one or

                                       4
<PAGE>

more of the obligations or restrictions imposed on the Participant pursuant to
the express provisions of the Plan or any Award.

        (c) Board Discretion. Except as otherwise provided by the Plan, each
type of Award may be made alone or in addition or in relation to any other type
of Award. The terms of each type of Award need not be identical, and the Board
need not treat Participants uniformly.

        (d) Termination of Status. The Board shall determine the effect on an
Award of the disability, death, retirement, authorized leave of absence or other
change in the employment or other status of a Participant and the extent to
which, and the period during which, the Participant, the Participant's legal
representative, conservator, guardian or Designated Beneficiary may exercise
rights under the Award.

        (e) Certain Acquisition Events.

            (1) Assumption of Options and Awards. Upon the occurrence of an
Acquisition Event (as defined below), or the execution by the Company of any
agreement with respect to an Acquisition Event, the Board may take any one or
more of the following actions, or any other action not inconsistent with the
terms of the Plan, with respect to then outstanding Awards: (i) provide that
outstanding Options (and stock appreciation rights) shall be assumed, or
equivalent Options (and stock appreciation rights) shall be substituted, by the
acquiring or succeeding corporation (or an affiliate thereof), provided that any
such Options substituted for Incentive Stock Options shall satisfy, in the
determination of the Board, the requirements of Section 424(a) of the Code; or
(ii) provide that any other outstanding stock-based Awards shall be assumed, or
equivalent Awards shall be substituted, by the acquiring or succeeding
corporation (or an affiliate thereof).

        An "Acquisition Event" shall mean: (a) any merger or consolidation which
results in the voting securities of the Company outstanding immediately prior
thereto representing immediately thereafter (either by remaining outstanding or
by being converted into voting securities of the surviving or acquiring entity)
less than a majority of the combined voting power of the voting securities of
the Company or such surviving or acquiring entity outstanding immediately after
such merger or consolidation; (b) any sale of all or substantially all of the
assets of the Company, if the Company owns less than a majority of the combined
voting power of the voting securities of the acquiring entity or other person;
or (c) the sale of shares of capital stock of the Company, in a single
transaction or series of related transactions, representing at least 80% of the
voting power of the voting securities of the Company, if the Company owns less
than a majority of the combined voting power of the voting securities of the
acquiring entity or other person. Notwithstanding the foregoing, (x) a merger or
consolidation with a Siemens Entity (as defined below) shall not be an
Acquisition Event under clause (a) of the foregoing sentence, and (y) sales to a
Siemens Entity shall be disregarded under clauses (b) and (c) of the foregoing
sentence. For these purposes, a "Siemens Entity" shall be any entity which is
controlling, controlled by or under common control with Siemens AG; provided
that, without limiting the generality of the foregoing, the term "Siemens
Entity" shall expressly include any entity the combined voting power of the
voting securities of which is owned, directly or indirectly, 50% or more by
Siemens AG.

            (2) Acceleration, Etc. Unless otherwise provided in the Option Award
Agreement or the stock restriction agreement relating to a Restricted Stock
Award, or in the award agreement relating to other stock-based awards under
Section 7, as applicable, upon the occurrence of an Acquisition Event, (i) in
case of an Option for shares with respect to which the Option (or stock
appreciation right) is not then exercisable (but only to the extent the Option
(or stock appreciation right) may in the future become exercisable and is
otherwise then outstanding) the Option shall be exercisable for the number of
shares of Common Stock as is scheduled to apply on the date 12 months after the
closing of the Acquisition Event, provided, however, that with respect to any
Option granted to a non-employee Director of the Company, such Option shall
become immediately exercisable in full, (ii) all restrictions relating to
outstanding

                                       5
<PAGE>

shares then subject to restrictions pursuant to the Restricted Stock Award shall
lapse with respect to the number of shares which are scheduled to become free of
restriction during the 12 months to follow the closing of the Acquisition Event
and (iii) vesting conditions applicable to Awards not covered by clause (i) or
(ii) shall lapse to the extent that they would be scheduled to lapse during the
12 months to follow the closing of the Acquisition Event. In addition, upon the
occurrence of an Acquisition Event, or the execution by the Company of an
agreement with respect to an Acquisition Event, the Board may take any one of
the following actions with respect to then outstanding Awards: (i) upon written
notice to the Participants, provide that all then unexercised Options (and stock
appreciation rights) will become exercisable in full as of a specified time (the
"Acceleration Time") prior to the Acquisition Event and will terminate
immediately prior to the consummation of such Acquisition Event, except to the
extent exercised by the Participants between the Acceleration Time and the
consummation of the Acquisition Event; (ii) provide that all Restricted Stock
Awards then outstanding shall become free of all restrictions prior to the
consummation of the Acquisition Event; (iii) in the event of an Acquisition
Event under the terms of which holders of Common Stock will receive upon
consummation thereof a cash payment for each share of Common Stock surrendered
pursuant to such Acquisition Event (the "Acquisition Price"), provide that all
outstanding Options (and stock appreciation rights) shall terminate upon
consummation of such Acquisition Event and each Participant shall receive, in
exchange therefor, a cash payment equal to the amount (if any) by which (A) the
Acquisition Price multiplied by the number of shares of Common Stock subject to
such outstanding Options (or stock appreciation rights) (whether or not then
exercisable), exceeds (B) the aggregate exercise price of such Options (or stock
appreciation rights); and (iv) provide that any other stock-based Awards
outstanding shall become exercisable, realizable or vested in full, or shall be
free of all conditions or restrictions, as applicable to each such Award, prior
to the consummation of the Acquisition Event.

        (f) Certain Changes in Capital Structure.

            (1) In General. If (i) the Company shall at any time be involved in
a merger, consolidation, dissolution, liquidation, reorganization, exchange of
shares, sale of all or substantially all of the assets or stock of the Company
or a transaction similar thereto, (ii) any stock dividend, stock split, reverse
stock split, stock combination, reclassification, recapitalization or other
similar change in the capital structure of the Company, or any distribution to
holders of Common Stock other than cash dividends, shall occur or (iii) any
other event shall occur which in the judgment of the Board necessitates action
by way of adjusting the terms of the outstanding Awards, then:

            (x) the maximum aggregate number of shares of Common Stock which may
            be made subject to Options under the Plan, the maximum aggregate
            number and kind of shares of Restricted Stock that may be granted
            under the Plan and the maximum amount of Awards generally which may
            be granted under the Plan may be appropriately adjusted by the
            Committee in its discretion; and

            (y) the Board may take any such action as in its judgment shall be
            necessary to preserve the Participants' rights in their respective
            Awards substantially proportionate to the rights existing in such
            Awards prior to such event, including, without limitation,
            adjustments in (A) the number of Options (and stock appreciation
            rights) granted, (B) the number and kind of shares or other property
            to be distributed in respect of Options (and stock appreciation
            rights) (if and as applicable) and (C) the Option exercise price
            (and the exercise price of stock appreciation rights).

If this Section 8(f) applies and Section 8(e) also applies to any event, then
Section 8(e) shall be applicable, and this Section 8(f) shall not be applicable
to the extent inconsistent with the actions taken and results occurring in
accordance with Section 8(e).

                                       6
<PAGE>

            (2) Assumption of Awards Upon Certain Events. The Board may grant
Awards under the Plan in substitution for stock and stock-based awards held by
employees or another corporation who become employees of the Company as a result
of a merger or consolidation of the employing corporation with the Company or
the acquisition by the Company of property or stock of the employing
corporation. The substitute Awards shall be granted on such terms and conditions
as the Board considers appropriate in the circumstances.

            (3) Restricted Stock. Any shares or other securities distributed to
a Participant with respect to Restricted Stock shall be subject to the
restrictions and requirements imposed by Section 6, including depositing the
certificates therefor with the Company together with a stock power as provided
in Section 6. In addition, if the Company shall be consolidated or merged with
another corporation, each Participant who has received Restricted Stock that is
then subject to restrictions imposed by Section 6 may be required to deposit
with the successor corporation the certificates for the stock or securities or
the other property that the Participant is entitled to receive by reason of
ownership of Restricted Stock in a manner consistent with Section 6, and such
stock, securities or other property shall become subject to the restrictions and
requirements imposed by Section 6.

        (g) Right of First Refusal; Right of Repurchase. At the time of grant of
an Award, the Board may provide in connection with any Award under the Plan that
shares of Common Stock received in connection with Awards shall be subject to
(i) a right of first refusal pursuant to which the Company shall be entitled to
purchase such shares in the event of a prospective sale of shares of Common
Stock, subject to such terms and conditions as the Board may specify at the time
of the grant of the Award or (if permitted by the Award) thereafter, or (ii) a
right of repurchase, pursuant to which the Company shall be entitled to purchase
such shares of Common Stock at a price determined by, or under a formula set by,
the Board at the time of grant or (if permitted by the Award) thereafter,
subject to such other terms and conditions as the Board may specify at the time
of grant.

        (h) Withholding. Each Participant shall pay to the Company, or make
provision satisfactory to the Board for payment of, any taxes required by law to
be withheld in connection with Awards to such Participant no later than the date
of the event creating the tax liability. The Board may allow Participants to
satisfy such tax obligations in whole or in part in shares of Common Stock,
including shares retained from the Award creating the tax obligation, valued at
their Fair Market Value. The Company may, to the extent permitted by law, deduct
any such tax obligations from any payment of any kind otherwise due to a
Participant. Notwithstanding anything contained in the Plan to the contrary, the
Participant's satisfaction of any tax-withholding requirements imposed by the
Board shall be a condition precedent to the Company's obligation as may
otherwise be provided hereunder to provide shares of Common Stock to the
Participant and to the release of any restrictions as may otherwise be provided
hereunder, as applicable; and the applicable Option or Restricted Stock (or
other stock-based Awards) shall be forfeited upon the failure of the Participant
to satisfy such requirements with respect to, as applicable, (i) the exercise of
the Option, (ii) the lapsing of restrictions on the Restricted Stock (or other
income-recognition event) or (iii) distributions in respect of any other
stock-based Awards.

        (i) Amendment of Award. The Board may amend, modify or terminate any
outstanding Award, including but not limited to, substituting therefor another
Award of the same or a different type, changing the date of exercise or
realization, and converting an Incentive Stock Option to a Nonstatutory Stock
Option, provided that the Participant's consent to such action shall be required
unless the Board determines that the action, taking into account any related
action, would not materially and adversely affect the Participant.

        (j) Conditions on Delivery of Stock.

            (1) The obligation of the Company to sell shares of Common Stock
with respect to an Award shall be subject to all applicable laws, rules and
regulations, including all applicable federal and

                                       7
<PAGE>

state securities laws, and the obtaining of all such approvals by governmental
agencies as may be deemed necessary or appropriate by the Board.

            (2) The Board may make such changes to the Plan as may be necessary
or appropriate to comply with the rules and regulations of any government
authority or to obtain tax benefits applicable to stock options.

            (3) Each grant of an Award (or issuance of shares of Common Stock in
respect thereof) is subject to the requirement that, if at any time the Board
determines, in its discretion, that the listing, registration or qualification
of shares of Common Stock issuable pursuant to the Plan is required by any
securities exchange or under any state or federal law, or the consent or
approval of any governmental regulatory body is necessary or desirable as a
condition of, or in connection with, the grant of an Award (or the issuance of
shares of Common Stock in respect thereof), no payment shall be made or share
issued or grant of Restricted Stock made, in whole or in part, unless listing,
registration, qualification, consent or approval has been effected or obtained
free of any conditions in a manner acceptable to the Board.

            (4) In the event that the disposition of stock acquired pursuant to
the Plan is not covered by a then current registration statement under the
Securities Act, and is not otherwise exempt from such registration, such shares
of Common Stock shall be restricted against transfer to the extent required
under the Securities Act, and the Board may require any individual receiving
shares of Common Stock pursuant to the Plan, as a condition precedent to receipt
of such shares of Common Stock, to represent to the Company in writing that the
shares of Common Stock acquired by such individual are acquired for investment
only and not with a view to distribution and that such shares of Common Stock
will be disposed of only if registered for sale under the Securities Act or if
there is an available exemption for such disposition.

        (k) Acceleration. The Board may at any time provide that any Options
shall become immediately exercisable in full or in part, that any Restricted
Stock Awards shall be free of all restrictions or that any other stock-based
Awards may become exercisable in full or in part or free of some or all
restrictions or conditions, or otherwise realizable in full or in part, as the
case may be.

9.      Miscellaneous

        (a) No Right To Employment or Other Status. No person shall have any
claim or right to be granted an Award, and the grant of an Award shall not be
construed as giving a Participant the right to continued employment or any other
relationship with the Company. The Company expressly reserves the right at any
time to dismiss or otherwise terminate its relationship with a Participant free
from any liability or claim under the Plan, except as expressly provided in the
applicable Award.

        (b) No Rights As Stockholder. Subject to the provisions of the
applicable Award, no Participant or Designated Beneficiary shall have any rights
as a stockholder with respect to any shares of Common Stock to be distributed
with respect to an Award until becoming the record holder of such shares.

        (c) Notices. All notices under the Plan shall be in writing, and if to
the Company, shall be delivered to the Board or mailed to its principal office,
addressed to the attention of the Board; and if to the Participant, shall be
delivered personally, sent by facsimile transmission or mailed to the
Participant at the address appearing in the records of the Company. Such
addresses may be changed at any time by written notice to the other party given
in accordance with this Section 9(c).

        (d) Effective Date and Term of Plan. The Plan shall become effective on
the date on which it is adopted by the Board. No Awards shall be granted under
the Plan after the completion of five years from the earlier of (i) the date on
which the Plan was adopted by the Board or (ii) the date the Plan was

                                       8
<PAGE>

approved by the Company's stockholders, but Awards previously granted may remain
outstanding beyond that date.

        (e) Amendment of Plan. The Board may amend, suspend or terminate the
Plan or any portion thereof at any time.

        (f) Captions. The use of captions in this Plan is for convenience. The
captions are not intended to provide substantive rights.

        (g) Governing Law. The provisions of the Plan and all Awards made
hereunder shall be governed by and interpreted in accordance with the laws of
the Commonwealth of Massachusetts, without reference to principles of conflict
of laws.

                                       9
<PAGE>

                            UNISPHERE NETWORKS, INC.

              SECOND AMENDED AND RESTATED 1999 STOCK INCENTIVE PLAN

                              CALIFORNIA SUPPLEMENT

        Pursuant to Section 10(e) of the Plan, the Board has adopted this
supplement for purposes of satisfying the requirements of Section 25102(o) of
the California Corporations Code:

        Any Awards granted under the Plan to a Participant who is a resident of
the State of California on the date of grant (a "California Participant") shall
be subject to the following additional limitations, terms and conditions:

                                       10
<PAGE>

1.      Additional Limitations on Options.

Minimum Vesting Rate. Except in the case of Options granted to California
Participants who are officers, directors, consultants or advisors of the Company
or its affiliates (which Options may become exercisable at whatever rate is
determined by the Board), Options granted to California Participants shall
become exercisable at a rate of no less than 20% per year over five years from
the date of grant; provided, that, such Options may be subject to such
reasonable forfeiture conditions as the Board may choose to impose and which are
not inconsistent with Section 260.140.41 of the California Code of Regulations.

Minimum Exercise Price. The exercise price of Options granted to California
Participants may not be less than 85% of the Fair Market Value of the Common
Stock on the date of grant in the case of a Nonstatutory Stock Option or less
than 100% of the Fair Market Value of the Common Stock on the date of grant in
the case of an Incentive Stock Option; provided, however, that if the California
Participant is a person who owns stock possessing more than 10% of the total
combined voting power of all classes of stock of the Company or its parent or
subsidiary corporations, the exercise price shall be not less than 110% of the
Fair Market Value of the Common Stock on the date of grant.

Maximum Duration of Options. No Options granted to California Participants will
be granted for a term in excess of 10 years.

Minimum Exercise Period Following Termination. Unless a California Participant's
employment is terminated for cause (as defined in any contract of employment
between the Company and such Participant, or if none, in the instrument
evidencing the grant of such Participant's Option), in the event of termination
of employment of such Participant, he or she shall have the right to exercise an
Option, to the extent that he or she was otherwise entitled to exercise such
Option on the date employment terminated, as follows: (i) at least six months
from the date of termination, if termination was caused by such Participant's
death or "permanent and total disability" (within the meaning of Section
22(e)(3) of the Code) and (ii) at least 30 days from the date of termination, if
termination was caused other than by such Participant's death or "permanent and
total disability" (within the meaning of Section 22(e)(3) of the Code.

Limitation on Repurchase Rights. If an Option granted to a California
Participant gives the Company the right to repurchase shares of Common Stock
issued pursuant to the Plan upon termination of employment of such Participant,
the terms of such repurchase right must comply with Section 260.140.41(k) of the
California Code of Regulations.

1.      Additional Limitations for Restricted Stock Awards.

Minimum Purchase Price. The purchase price for a Restricted Stock Award granted
to a California Participant shall be not less than 85% of the Fair Market Value
of the Common Stock at the time such Participant is granted the right to
purchase shares under the Plan or at the time the purchase is consummated;
provided, however, that if such Participant is a person who owns stock
possessing more than 10% of the total combined voting power or value of all
classes of stock of the Company or its parent or subsidiary corporations, the
purchase price shall be not less than 100% of the Fair Market Value of the
Common Stock at the time such Participant is granted the right to purchase
shares under the Plan or at the time the purchase is consummated.

Limitation of Repurchase Rights. If a Restricted Stock Award granted to a
California Participant gives the Company the right to repurchase shares of
Common Stock issued pursuant to the Plan upon

                                       11
<PAGE>

termination of employment of such Participant, the terms of such repurchase
right must comply with Section 260.140.42(h) of the California Code of
Regulations.

Additional Limitations for Other Stock-Based Awards. The terms of all Awards
granted to a California Participant under Section 7 of the Plan shall comply, to
the extent applicable, with Section 260.140.41 or Section 260.140.42 of the
California Code of Regulations.

2.      Additional Limitations on Transferability of Awards. Except as provided
        in the next sentence, Awards granted to California Participants shall
        not be sold, assigned, transferred, pledged or otherwise encumbered by
        the person to whom they are granted, either voluntarily or by operation
        of law, except by will or the laws of descent and distribution, and,
        during the life of such Participant, shall be exercisable only by such
        Participant. Notwithstanding the foregoing, the Board may, in the case
        of Nonstatutory Stock Options, allow them to be transferred to an inter
        vivos or testamentary trust in which the Options are to be passed to
        beneficiaries upon the death of the trustor (settlor) or by gift to
        "immediate family" as that term is defined in Rule 16a-1(e) under the
        Exchange Act.

3.      Additional Requirement to Provide Information to California
        Participants. The Company shall provide to each California Participant
        and to each California Participant who acquires Common Stock pursuant to
        the Plan, not less frequently than annually, copies of annual financial
        statements (which need not be audited). The Company shall not be
        required to provide such statements to key employees whose duties in
        connection with the Company assure their access to equivalent
        information.

4.      Additional Limitations on Timing of Awards. No Award granted to a
        California Participant shall become exercisable, vested or realizable,
        as applicable to such Award, unless the Plan has been approved by the
        Company's stockholders within 12 months before or after the date the
        Plan was adopted by the Board.

Additional Limitations Relating to Definition of Fair Market Value. For purposes
of Section 1(b) and 2(a) of this supplement, "Fair Market Value" shall be
determined in a manner not inconsistent with Section 260.140.50 of the
California Code of Regulations.

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