Document:

Exhibit 10.3  

EQUALLOGIC, INC.  

Non-Qualified Stock Option Agreement  

        EqualLogic, Inc., a Delaware corporation (the "Company"), hereby grants as of  [date] to [name of
optionee] (the "Optionee"), an option
to purchase a maximum of [number] shares (the "Option Shares") of its Common Stock, $.0l par value ("Common Stock"), at the
price of $[price] per share, on the following terms and conditions: 

        1.    Grant Under 2001 Stock Plan.    This option is granted pursuant
to and is governed by the Company's 2001 Stock Plan (the "Plan") and, unless the context otherwise requires, terms used herein shall have the same meaning as in the Plan. Determinations made in
connection with this option pursuant to the Plan shall be governed by the Plan as it exists on this date. 

        2.    Grant as Non-Qualified Option; Other
Options.    This option shall be treated for federal income tax purposes as a Non-Qualified Option (rather than an incentive stock option). This option is
in addition to any other options heretofore or hereafter granted to the Optionee by the Company or any Related Corporation (as defined in the Plan), but a duplicate original of this instrument shall
not effect the grant of another option. 

        3.    Vesting of Option.    

        (a)    Vesting of Option if Business Relationship Continues.    If the
Optionee has continued to serve the Company or any Related Corporation in the capacity of an employee, officer, director or consultant (such service is described herein as maintaining or being
involved in a "Business Relationship with the Company") on the following dates, the Optionee may exercise this option for the number of shares of Common Stock set opposite the applicable
date:  

	Vesting Period
 
	 	Percentage of Shares that

become Vested Shares

	Prior to the first anniversary of the date of this Agreement	 	0%
	On the first anniversary of the date of this Agreement	 	25%
	On the [insert date] day of an add each successive month thereafter	 	an additional 2.083%
	On or after the fourth anniversary of the date of this Agreement	 	100%

Notwithstanding
the foregoing, in accordance with and subject to the provisions of the Plan, the Committee may, in its discretion, accelerate the date that any installment of this Option becomes
exercisable. The foregoing rights are cumulative and (subject to Sections 4 or 5 hereof if the Optionee ceases to be maintain a Business Relationship with the Company and all Related Corporations) may
be exercised up to and including the date which is ten (10) years from the date this option is granted. 

        (b)    Vesting of Option Upon Acquisition.    Upon the consummation of
an Acquisition (as defined in Section 3(c)) that is not a Private Transaction (as defined in Section 3(d)) the vesting of this Agreement shall be accelerated by a period of one year such
that the Optionee be credited with one year of additional service time of a Business Relationship with the Company. 

        (c)    Definition of Acquisition.    "Acquisition" shall mean:
(x) any merger, consolidation or purchase of outstanding capital stock of the Company after which the voting securities of the Company outstanding immediately prior thereto represent (either by
remaining outstanding or by being converted into voting securities of the surviving or acquiring entity) less than 50% of the combined voting power of the voting securities of the Company or such
surviving or acquiring entity outstanding immediately after such event; or (y) any sale of all or substantially all of the assets of the Company (other than in a spin-off or similar
transaction). 

 

        (d)    Definition of Private Transaction.    "Private Transaction"
shall mean any Acquisition where the consideration received or retained by the holders of the then outstanding capital stock of the Company does not consist of (i) cash or cash equivalent
consideration, (ii) securities which are registered under the Securities Act of 1933, as amended, or any successor statute (the "Securities Act") and/or (iii) securities for which the
Company or any other issuer thereof has agreed to file a registration statement within ninety (90) days of completion of the transaction for resale to the public pursuant to the Securities Act. 

        4.    Termination of Business Relationship.    

        (a)    Termination Other than for Cause.    If the Optionee's Business
Relationship with the Company and all Related Corporations is terminated, other than by reason of death, disability or dissolution as defined in Section 5 or termination for Cause as defined in
Section 4(c), no further installments of this option shall become exercisable, and this option may be exercised, to the extent otherwise exercisable on the last day of the Business
Relationship, for a period of three months from the date the Business Relationship ceases, but in no event later than the scheduled expiration date. In such a case, the Optionee's only rights
hereunder shall be those which are properly exercised before the termination of this option. For purposes hereof, the Business Relationship shall not be considered as having terminated during any
leave of absence if such leave of absence has been approved in writing by the Company and if such written approval contractually obligates the Company to continue a Business Relationship with the
Optionee after the approved period of absence; in the event of such an approved leave of absence, vesting of this option shall be suspended (and the period of the leave of absence shall be added to
all vesting dates) unless otherwise provided in the Company's written approval of the leave of absence. 

        (b)    Termination for Cause.    If the Optionee's Business
Relationship with the Company is terminated for Cause (as defined in Section 4(c)), this option shall terminate upon the Optionee's receipt of written notice of such termination and shall
thereafter not be exercisable to any extent whatsoever. 

        (c)    Definition of Cause.    "Cause" shall mean conduct involving
one or more of the following: (i) the substantial and continuing failure of the Optionee, after notice thereof, to render services to the Company or Related Corporation in accordance with the
terms or requirements of the Optionee's Business Relationship with the Company; (ii) disloyalty, gross negligence, willful misconduct, dishonesty or breach of fiduciary duty to the Company or
Related Corporation; (iii) the commission of an act of embezzlement or fraud; (iv) deliberate disregard of the rules or policies of the Company or Related Corporation which results in
direct or indirect loss, damage or injury to the Company or Related Corporation; (v) the unauthorized disclosure of any trade secret or confidential information of the Company or Related
Corporation; or (vi) the commission of an act which constitutes unfair competition with the Company or Related Corporation or which induces any customer or supplier to breach a contract with
the Company or Related Corporation. 

        5.    Death; Disability; Dissolution.    

        (a)    Death.    If the Optionee is a natural person who dies while
involved in a Business Relationship with the Company, this option may be exercised, to the extent otherwise exercisable on the date of his or her death, by the Optionee's estate, personal
representative or beneficiary to whom this option has been assigned pursuant to Section 10, at any time within 180 days after the date of death, but not later than the scheduled
expiration date. 

        (b)    Disability.    If the Optionee is a natural person whose
Business Relationship with the Company is terminated by reason of his or her disability (as defined in the Plan), this option may be exercised, to the extent otherwise exercisable on the date the
Business Relationship was terminated, at any time within 180 days after such termination, but not later than the scheduled expiration date. 

2

 

        (c)    Effect of Termination.    At the expiration of such
180 day period provided in paragraphs (a) or (b) of this Section 5 or the scheduled expiration date, whichever is the earlier, this option shall terminate (and shall no
longer be exercisable) and the only rights hereunder shall be those as to which the option was properly exercised before such termination. 

        (d)    Dissolution.    If the Optionee is a corporation, partnership,
trust or other entity that is dissolved, is liquidated, becomes insolvent or enters into a merger or acquisition with respect to which the Optionee is not the surviving entity, at a time when the
Optionee is involved in a Business Relationship with the Company, this option shall immediately terminate as of the date of such event (and shall thereafter not be exercisable to any extent
whatsoever), and the only rights hereunder shall be those as to which this option was properly exercised before such dissolution or other event. 

        6.    Partial Exercise.    This option may be exercised in part at any
time and from time to time within the above limits, except that this option may not be exercised for a fraction of a share unless such exercise is with respect to the final installment of stock
subject to this option and cash in lieu of a fractional share must be paid, in accordance with Paragraph 13G of the Plan, to permit the Optionee to exercise completely such final installment.
Any fractional share with respect to which an installment of this option cannot be exercised because of the limitation contained in the preceding sentence shall remain subject to this option and shall
be available for later purchase by the Optionee in accordance with the terms hereof. 

        7.    Payment of Price.    

        (a)    Form of Payment.    The option price shall be paid in the
following manner: 

	(i)
	in
cash or by check;

	(ii)
	subject
to Section 7(b) below, if the Common Stock is then traded on a national securities exchange or on the Nasdaq National Market (or successor trading system), by delivery
of shares of the Company's Common Stock having a fair market value equal as of the date of exercise to the option price;

	(iii)
	if
the Common Stock is then traded on a national securities exchange or on the Nasdaq National Market (or successor trading system), by delivery of an unconditional undertaking,
satisfactory in form and substance to the Company, by a creditworthy broker to deliver promptly to the Company sufficient funds to pay the exercise price, or delivery by the Optionee to the Company a
copy of irrevocable and unconditional instructions, satisfactory in form and substance to the Company, to a creditworthy broker to deliver promptly to the Company cash or check sufficient to pay the
exercise price; or

	(iv)
	by
any combination of the foregoing. 

        In
the case of (ii) above, fair market value as of the date of exercise all be determined as of the last business day for which such prices or quotes are available prior to the
date of exercise and shall mean (i) the last reported sale price (on that date) of the Common Stock on the principal national securities exchange on which the Common Stock is traded, if the
Common Stock is then traded on a national securities exchange; or (ii) the last reported sale price (on that date) of the Common Stock on the Nasdaq National Market (or successor trading
system), if the Common Stock is not then traded on a national securities exchange. 

        (b)    Limitations on Payment by Delivery of Common Stock.    If
Section 7(a)(iii) is applicable, and if the Optionee delivers Common Stock held by the Optionee ("Old Stock") to the Company in full or partial payment of the option price, and the Old Stock so
delivered is subject to restrictions or limitations imposed by agreement between the Optionee and the Company, an 

3

 

equivalent
number of Option Shares shall be subject to all restrictions and limitations applicable to the Old Stock to the extent that the Optionee paid for the Option Shares by delivery of Old Stock,
in addition to any restrictions or limitations imposed by this Agreement. Notwithstanding the foregoing, the Optionee may not pay any part of the exercise price hereof by transferring Common Stock to
the Company unless such Common Stock has been owned by the Optionee free of any substantial risk of forfeiture for at least six months. 

        8.    Restrictions on Transfer; Legend.    

        (a)   Option Shares may not be transferred without the Company's written consent except by will, by the laws of descent and
distribution, or in accordance with the provisions of Sections 16, if applicable. Until registered under the Securities Act of 1933, as amended, or any successor statute (the "Securities Act"),
the Option Shares will be of an illiquid nature and will be deemed to be "restricted securities" for purposes of the Securities Act. Accordingly, such shares must be sold in compliance with the
registration requirements of the Securities Act or an exemption therefrom. Unless the Option Shares have been registered under the Securities Act, each certificate evidencing any of the Option Shares
shall bear a legend substantially as follows: 

"The
shares represented by this certificate are subject to restrictions on transfer and may not be sold, exchanged, transferred, pledged, hypothecated or otherwise disposed of except in accordance
with and subject to all the terms and conditions of a certain Non-Qualified Stock Option Agreement dated as of  [Date], a copy of which the Company will furnish to the holder of this certificate upon
request and without charge." 

        9.    Method of Exercising Option.    Subject to the terms and
conditions of this Agreement, this option may be exercised by written notice to the Company, at the principal executive office of the Company, or to such transfer agent as the Company shall designate.
Such notice shall state the election to exercise this option and the number of Option Shares for which it is being exercised and shall be signed by the person or persons so exercising this option.
Such notice shall be accompanied by payment of the full purchase price of such shares, and the Company shall deliver a certificate or certificates representing such shares as soon as practicable after
the notice all be received. Such certificate or certificates shall be registered in the name of the person or persons so exercising this option (or, if this option shall be exercised by the Optionee
and if the Optionee shall so request in the notice exercising this option, shall be registered in the name of the Optionee and another person jointly, with right of survivorship). In the event this
option shall be exercised, pursuant to Section 5 hereof, by any person or persons other than the Optionee, such notice shall be accompanied by appropriate proof of the right of such person or
persons to exercise this option. 

        10.    Option Not Transferable.    This option is not transferable or
assignable except by will or by the laws of descent and distribution or pursuant to a valid domestic relations order. Except as set forth in the preceding sentence, during the Optionee's lifetime,
only the Optionee can exercise this option. 

        11.    No Obligation to Exercise Option.    The grant and acceptance
of this option imposes no obligation on the Optionee to exercise it. 

        12.    No Obligation to Continue Business Relationship.    Neither the
Plan, this Agreement, nor the grant of this option imposes any obligation on the Company or any Related Corporation to continue to maintain a Business Relationship with the Optionee. 

        13.    No Rights as Stockholder until Exercise.    The Optionee shall
have no rights as a stockholder with respect to the Option Shares until such time as the Optionee has exercised this option by delivering a notice of exercise and has paid in full the purchase price
for the number of shares for which this option is to be so exercised in accordance with Section 9. Except as is expressly provided in the Plan with respect to certain changes in the
capitalization of the Company, no adjustment shall be made for dividends or similar rights for which the record date is prior to such date of exercise. 

4

 

        14.    Capital Changes and Business Successions.    The Plan contains
provisions covering the treatment of options in a number of contingencies such as stock splits and mergers. Provisions in the Plan for adjustment with respect to stock subject to options and the
related provisions with respect to successors to the business of the Company are hereby made applicable hereunder and are incorporated herein by reference. 

        15.    Withholding Taxes.    If the Company or any Related Corporation
in its discretion determines that it is obligated to withhold any tax in connection with the exercise of this option, or in connection with the transfer of, or the lapse of restrictions on, any Common
Stock or other property acquired pursuant to this option, the Optionee hereby agrees that the Company or any Related Corporation may withhold from the Optionee's wages or other remuneration the
appropriate amount of tax. At the discretion of the Company or Related Corporation, the amount required to be withheld may be withheld in cash from such wages or other remuneration or in kind from the
Common Stock or other property otherwise deliverable to the Optionee on exercise of this option. The Optionee further agrees that, if the Company or Related Corporation does not withhold an amount
from the Optionee's wages or other remuneration sufficient to satisfy the withholding obligation of the Company or Related Corporation, the Optionee will make reimbursement on demand, in cash, for the
amount underwithheld. 

        16.    Company's Right of First Refusal.    

        (a)    Exercise of Right.    If the Optionee desires to transfer all
or any part of the Option Shares to any person other than the Company (an "Offeror"), the Optionee shall: (i) obtain in writing an irrevocable and unconditional bona fide offer (the "Offer")
for the purchase thereof from the Offeror; and (ii) give written notice (the "Option Notice") to the Company setting forth the Optionee's desire to transfer such shares, which Option Notice
shall be accompanied by a photocopy of the Offer and shall set forth at least the name and address of the Offeror and the price and terms of the Offer. Upon receipt of the Option Notice, the Company
shall have an assignable option to purchase any or all of such Option Shares (the "Company Option Shares") specified in the Option Notice, such option to be exercisable by giving, within
30 days after receipt of the Option Notice, a written counter-notice to the Optionee. If the Company elects to purchase any or all of such Company Option Shares, it shall be obligated to
purchase, and the Optionee shall be obligated to sell to the Company, such Company Option Shares at the price and terms indicated in the Offer within 30 days from the date of delivery by the
Company of such counter-notice. 

        (b)    Sale of Option Shares to Offeror.    The Optionee may, for 60
days after the expiration of the 30-day option period as set forth in Section 16(a), sell to the Offeror, pursuant to the terms of the Offer, any or all of such Company Option
Shares not purchased or agreed to be purchased by the Company or its assignee; provided, however,that the Optionee shall not sell such Company Option
Shares to such Offeror if such Offeror is a competitor of the Company and the Company gives written notice to the Optionee, within 30 days of its receipt of the Option Notice, stating that the
Optionee shall not sell his or her Company Option Shares to such Offeror; and provided, further, that prior to the sale of such Option Shares to an
Offeror, such Offeror shall execute an agreement with the Company pursuant to which such Offeror agrees to be subject to the restrictions set forth in this Section 16. If any or all of such
Company Option Shares are not sold pursuant to an Offer within the time permitted above, the unsold Company Option Shares shall remain subject to the terms of this Section 16. 

        (c)    Adjustments for Changes in Capital Structure.    If there shall
be any change in the Common Stock of the Company through merger, consolidation, reorganization, recapitalization, stock dividend, stock split, combination or exchange of shares, or the like, the
restrictions contained in Section 8 and this Section 16 shall apply with equal force to additional and/or substitute securities, if any, received by the Optionee in exchange for, or by
virtue of his or her 

5

 

ownership
of, Company Option Shares, except as otherwise determined by the Board of Directors of the Company. 

        (d)    Failure to Deliver Company Option Shares.    If the Transferor
fails or refuses to deliver on a timely basis duly endorsed certificates representing Company Option Shares to be sold to the Company or its assignee pursuant to this Section 16, the Company
shall have the right to deposit the purchase price for such Company Option Shares in a special account with any bank or trust company, giving notice of
such deposit to the Transferor, whereupon such Company Option Shares shall be deemed to have been purchased by the Company. All such monies shall be held by the bank or trust company for the benefit
of the Transferor. All monies deposited with the bank or trust company but remaining unclaimed for two years after the date of deposit shall be repaid by the bank or trust company to the Company on
demand, and the Transferor shall thereafter look only to the Company for payment. 

        (e)    Expiration of Company's Right of First Refusal and Transfer
Restrictions.    The first refusal rights of the Company and the transfer restrictions set forth above shall expire as to the Option Shares on the earlier to occur of
(i) the tenth anniversary of the date of this agreement, or (ii) immediately prior to the closing of a public offering of the Company's Common Stock pursuant to an effective registration
statement filed under the Securities Act. 

        17.    Lock-up Agreement.    The Optionee agrees that in
connection with an underwritten public offering of Common Stock, upon the request of the Company or the principal underwriter managing such public offering, the Option Shares may not be sold, offered
for sale or otherwise disposed of without the prior written consent of the Company or such underwriter, as the case may be, for at least 180 days after the effectiveness of the registration
statement filed in connection with such offering, or such longer period of time as the Board of Directors may determine if all of the Company's directors and officers agree to be similarly bound. The
obligations under this Section 17 shall remain effective for all underwritten public offerings with respect to which the Company has filed a registration statement on or before the date five
(5) years after the closing of the Company's initial public offering, provided, however, that this Section 18 shall cease to apply to any Option Share sold to the public pursuant to an
effective registration statement or an exemption from the registration requirements of the Securities Act in a transaction that complied with the terms of this Agreement. 

        18.    Arbitration.    Any dispute, controversy, or claim arising out
of, in connection with, or relating to the performance of this Agreement or its termination shall be settled by arbitration in the state of New Hampshire, pursuant to the rules then obtaining of the
American Arbitration Association. Any award shall be final, binding and conclusive upon the parties and a judgment rendered thereon may be entered in any court having jurisdiction thereof. 

        19.    Provision of Documentation to Optionee.    By signing this
Agreement the Optionee acknowledges receipt of a copy of this Agreement and a copy of the Plan. 

        20.    Miscellaneous.    

        (a)    Notices.    All notices hereunder shall be in writing and shall
be deemed given when sent by certified or registered mail, postage prepaid, return receipt requested, to the address set forth below. The addresses for such notices may be changed from time to time by
written notice given in the manner provided for herein. 

        (b)    Entire Agreement; Modification.    This Agreement constitutes
the entire agreement between the parties relative to the subject matter hereof, and supersedes all proposals, written or oral, and all other communications between the parties relating to the subject
matter of this Agreement. This Agreement may be modified, amended or rescinded only by a written agreement executed by both parties. 

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        (c)    Severability.    The invalidity, illegality or unenforceability
of any provision of this Agreement shall in no way affect the validity, legality or enforceability of any other provision. 

        (d)    Successors and Assigns.    This Agreement shall be binding upon
and inure to the benefit of the parties hereto and their respective successors and assigns, subject to the limitations set forth in Section 10 hereof. 

        (e)    Governing Law.    This Agreement shall be governed by and
interpreted in accordance with the laws of the State of New Hampshire, without giving effect to the principles of the conflicts of laws thereof he preceding choice of law provision shall apply to all
claims, under any theory whatsoever, arising out of the relationship of the parties contemplated herein. 

7

 

        IN
WITNESS WHEREOF, the Company and the Optionee have caused this instrument to be executed as of the date first above written. 

	 	 	EQUALLOGIC, INC.

17 Purgatory Road

Mont Vernon, NH 03057
	 	 	 	 	 
	
 Optionee	 	 	 	 
	

	
 	

By:	
 	

 
	Print Name of Optionee	 	 	 	
 Name
	

	
 	

Title:	
 	

 
	Street Address	 	 	 	
 President
	

 City    State    Zip Code	
 	

 	
 	

 

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Exhibit 10.4  

 
  EMPLOYEE STOCK PURCHASE AND RESTRICTION AGREEMENT    
    

        EqualLogic, Inc., a Delaware corporation (the "Company") agrees as of May 22, 2001 to sell to
                                         
                   , (the "Employee"), and the Employee agrees to purchase from the Company, shares of the
Company's Common Stock, $.01 par value per share  ("Common Stock"), on the following terms and conditions: 

        1.    Certain Defined Terms.    As used in this Agreement, the following terms shall have the following respective
meanings: 

        (a)   "Acquisition"
shall mean: (x) any merger, consolidation or purchase of outstanding capital stock of the Company after which the voting securities of the Company
outstanding immediately prior thereto represent (either by remaining outstanding or by being converted into voting securities of the surviving or acquiring entity) less than 50% of the combined voting
power of the voting securities of the Company or such surviving or acquiring entity outstanding immediately after such event; or (y) any sale of all or substantially all of the assets of the
Company (other than in a spin-off or similar transaction). 

        (b)   "Cause"
shall mean conduct involving one or more of the following: (i) the substantial and continuing failure of the Employee, after notice thereof, to render
services to the Company in accordance with the terms or requirements of his or her employment; (ii) disloyalty, gross negligence, willful misconduct, dishonesty, fraud or breach of fiduciary
duty to the Company; (iii) deliberate disregard of the rules or policies of the Company, or breach of an employment or other agreement with the Company, which results in direct or indirect
loss, damage or injury to the Company; (iv) the unauthorized disclosure of any trade secret or confidential information of the Company; or (v) the commission of an act which constitutes
unfair competition with the Company or which induces any customer or supplier to breach a contract with the Company. 

        (c)   "Fair
Value Per Share" shall mean, as of the date of determination, the fair market value of each share of Common Stock determined in good faith by the Board of
Directors of the Company. 

        (d)   "Private
Transaction" shall mean any Acquisition where the consideration received or retained by the holders of the then outstanding capital stock of the Company does
not consist of (i) cash or cash equivalent consideration, (ii) securities which are registered under the Securities Act of 1933, as amended (the "Securities Act") and/or
(iii) securities for which the Company or any other issuer thereof has agreed to file a registration statement within ninety (90) days of completion of the transaction for resale
to the public pursuant to the Securities Act. 

        (f)    "Shares"
shall mean and include all shares of Stock now owned or hereafter acquired by the Employee. 

        (g)   "Stock"
shall mean and include all shares of Common Stock, and all other securities of the Company which may be issued in exchange for or in respect of shares of Common
Stock (whether by way of stock split, stock dividend, combination, reclassification, reorganization, or any other means). 

        2.    Grant Under Plan.    This stock purchase is made pursuant to and is governed by the Company's 2001 Stock Plan
(the "Plan") and, unless the context otherwise requires, terms used herein shall have the same meanings as in the Plan. The Employee acknowledges
receipt of a copy of the Plan. 

        3.    Purchase and Sale of Stock; Payment of Purchase Price.    The Company hereby sells to the Employee, and the
Employee hereby purchases from the Company,                        shares of Common Stock at a purchase price of $.01 per Share.
The purchase price shall be paid by the Employee upon execution and delivery
of this Agreement by check payable to the Company in the amount of the par value of the Shares. The Company will promptly issue a certificate or certificates registered in the 

 

Employee's
name representing the Shares, with such certificates to be held in escrow in accordance with the terms hereof. 

        4.    Investment Representation.    The Employee represents and warrants to the Company that he is acquiring the
Shares with his own funds, for his own account for the purpose of investment, and not with a view to any resale or other distribution thereof in violation of the Securities Act. Furthermore, the
Company may place a legend on any stock certificate representing the Shares to the effect that the Shares were acquired pursuant to an investment representation without registration of the Shares and
may make an appropriate notation with respect to the same on its stock records. The Company may also place a legend on any stock certificate representing any of the Shares reflecting the restrictions
on transfer and
Company's rights of repurchase and rights of first refusal set forth herein and may make an appropriate notation on its stock records with respect to the same. 

        The
Employee acknowledges and understands that the Shares have not been registered under the Securities Act, nor registered pursuant to the provisions of the securities laws or other
laws of any other applicable jurisdictions, in reliance on exemptions for private offerings contained in Section 4(2) of the Securities Act and in the laws of such jurisdictions. The Employee
represents and warrants to the Company that he is a sophisticated investor with such knowledge and experience in financial and business matters as to be able to evaluate the merits and risks of an
investment in the Shares and that he is able to and must bear the economic risk of his investment in the Shares for an indefinite period of time because the Shares have not been registered under the
Securities Act, and therefore, cannot be offered or sold unless they are subsequently registered under the Securities Act or an exemption from such registration is available. The Employee further
understands that the Company has no intention and is under no obligation to register the Shares under the Securities Act or to comply with the requirements for any exemption that might otherwise be
available, or to supply the Employee with any information necessary to enable the Employee to make routine sales of the Shares under Rule 144 or any other rule of the Securities and Exchange
Commission. 

        5.    Prohibited Transfers.    The Employee shall not sell, assign, transfer, pledge, hypothecate, mortgage, encumber
or dispose of all or any of his or her Shares except: 

        (a)   by
sale in accordance with Section 6 or Section 7 of this Agreement; 

        (b)   by
pledge which creates a mere security interest in the Shares provided that the pledgee thereof is an individual and all have agreed in writing in advance to be bound
by and comply with all provisions of this Agreement to the same extent as if he were a Employee; 

        (c)   by
will or the laws of descent and distribution, in which event each such transferee shall be bound by all of the provisions of this Agreement to the same extent as if
such transferee were a Employee 

        (d)   by
gift to any member of his immediate family or to any trust for the benefit of any such immediate family member or the Employee, provided that any such transferee
shall have agreed in writing in advance to be bound by and comply with all provisions of this Agreement to the same extent as if such transferee were a Employee; or 

        6.    Repurchase Option of Company Upon Termination of Employment or other event; Vesting.    

        (a)   if
the Employee has continued to serve the Company or any of its subsidiaries in the capacity of an employee, officer, director or consultant (such service is described
herein as 

2

 

maintaining
or being involved in a "Business Relationship" with the Company) on the following dates, the following percentage of the Shares shall be deemed "Vested Shares": 

	Vesting Period
 
	 	Percentage of Shares that

become Vested Shares

	Prior to the first anniversary of the date of this Agreement	 	0%
	On the first anniversary of the date of this Agreement	 	25%
	On the [insert date] day of each successive month thereafter	 	an additional 2.083%
	On or after the fourth anniversary of the date of this Agreement	 	100%

        (b)   Upon
the occurrence of one or more of the following events, the Company may, within 120 days from the date of such event or events (the "Repurchase Period"),
require the Employee to sell his or her Shares to the Company other than Vested Shares (the "Unvested Shares"): 

        (i)    the
Employee shall for any reason, including, without limitation, death, disability or involuntary removal with or without cause, cease to maintain a Business
Relationship with the Company; 

        (ii)   the
Employee shall be declared bankrupt, file a voluntary petition under any bankruptcy or insolvency law, become subject to an involuntary petition under any
bankruptcy or insolvency law which petition is not dismissed within thirty (30) days of its date, petition for the appointment of a receiver or assignment of his or her Shares for the benefit
of creditors, or become subject to such a petition or assignment which petition is not dismissed within thirty (30) days of its date; 

        (iii)  a
writ of attachment or levy or other court order shall be entered which shall prevent the Employee from exercising his or her voting and other rights with respect to
any of the Shares; 

        (iv)  the
Employee shall sell or transfer any Shares in violation of the terms of this Agreement; or 

        (v)   the
Employee shall be subject to a divorce, separation proceeding or settlement agreement pursuant to which Shares are to be acquired by or transferred, directly or
indirectly, to the spouse of the Employee. 

        (c)   The
purchase price (the "Option Price") of any Shares for which the Company exercises its option under this Section 6 (the "Repurchased Shares") shall be the
lesser of the Fair Value Per Share or $.01 per share (such price being subject to equitable adjustment for any stock split, stock dividend, combination of shares or the like and based upon Common
Stock or Common Stock equivalents). 

        (d)   If
the Company desires to exercise its option to purchase, it shall do so by communicating in writing its election to purchase to the Employee, which communication shall
state the number of Repurchased Shares and the Option Price and shall be delivered in person or mailed to the Employee at the address set forth in accordance with Section 15(a) below within the
Repurchase Period. The sale of the Repurchased Shares shall be made at the offices of the Company on the 20th day following the date of the Company's written election to purchase (or if such 20th day
is not a business day, then on the next succeeding business day). Such sale shall be effected by the Employee's delivery to the Company of a certificate or certificates evidencing the Repurchased
Shares, duly endorsed for transfer to the Company, against payment to the Employee by the Company of the Option Price for each Repurchased Share. 

3

 

        (e)   Upon
the consummation of an Acquisition that is not a Private Transaction, the vesting provisions of this Agreement shall be accelerated by a period of one year such
that the Employee shall be credited with one year of additional service time to the Company as an employee. 

        7.    Company's Right of First Refusal.    

        (a)    Exercise of Right.    If the Employee desires to transfer all or any part of the Vested Shares to any person
other than the Company (an "Offeror"), the Employee shall: (i) obtain in writing an irrevocable
and unconditional bona fide offer (the "Offer") for the purchase thereof from the Offeror; and
(ii) give written notice (the "Option Notice") to the Company setting forth the Employee's desire to transfer such shares, which Option Notice
shall be accompanied by a photocopy of the Offer and shall set forth at least the name and address of the Offeror and the price, number of Vested Shares proposed to be sold and terms of the Offer.
Upon receipt of the Option Notice, the Company shall have an assignable option to purchase any or all of such Vested Shares (the "Company Vested
Shares") specified in the Option Notice, such option to be exercisable by giving, within 30 days after receipt of the Option Notice, a written counter-notice to the
Employee. If the Company elects to purchase any or all of such Company Vested Shares, it shall be obligated to purchase, and the Employee shall be obligated to sell to the Company, such Company Vested
Shares at the price and terms indicated in the Offer within 30 days from the date of delivery by the Company of such counter-notice. To the extent that the consideration proposed to be paid by
the Offeror for the shares consists of property other than cash or a promissory note, the consideration required to be paid by the Company exercising its options under this Section 7 may
consist of cash equal to the fair market value of such property, as determined in good faith by the Board of Directors of the Company. 

        (b)    Sale of Vested Shares to Offeror.    The Employee may, for 60 days after the expiration of the
30-day option period as set forth in Section 7(a), sell to the Offeror, pursuant to the terms of the Offer, any or all of such Company Vested Shares not purchased or agreed to be
purchased by the Company or its assignee; provided, however, that the Employee shall not sell such Vested Shares to such Offeror if such Offeror is a
competitor of the Company and the Company gives written notice to the Employee, within 30 days of its receipt of the Option Notice, stating that the Employee shall not sell his or her Vested
Shares to such Offeror; and provided, further, that prior to the sale of such Vested Shares to an Offeror, such Offeror shall execute an agreement with
the Company pursuant to which such Offeror agrees to be subject to the restrictions set forth in this Section 7. If any or all of such Vested Shares are not sold pursuant to an Offer within the
time permitted above, the unsold Vested Shares shall remain subject to the terms of this Section 7. 

        (c)    Expiration of Company's Right of First Refusal and Transfer Restrictions.    The first refusal rights of the
Company and the transfer restrictions set forth in this Section 7 shall expire as to Vested Shares on the earliest to occur of (i) the tenth anniversary of the date of this Agreement,
(ii) immediately prior to the closing of a public offering of Common Stock by the Company pursuant to an effective registration statement filed under the Securities Act, or (iii) the
occurrence of an Acquisition. In addition, if the Company and the Employee are parties to an agreement containing first refusal provisions similar to the foregoing, such other agreement shall control. 

        8.    Escrow Arrangement.    As security for the faithful performance by each Employee of the terms of this Agreement
and to ensure the availability for delivery of the Unvested Shares upon exercise of the Company's right to repurchase as set forth in Section 6, each Employee agrees to deliver to and deposit
with the Company, as escrow agent in this transaction (herein called in this capacity the "Escrow Agent"), concurrently with the execution hereof, a stock assignment duly endorsed to the Company (with
date and number of Shares blank), together with the certificate or certificates 

4

 

evidencing
the Unvested Shares. Said documents are to be held by the Escrow Agent and delivered by the Escrow Agent pursuant to the terms hereinafter provided: 

        (a)   In
the event the Company exercises its right to repurchase as set forth in Section 6, the Company shall give to such Employee and the Escrow Agent a written
notice specifying the number of Unvested Shares which it is electing to repurchase, the appropriate purchase price, and the time for a closing hereunder at the Company's offices. The Company and each
Employee hereby irrevocably authorize and direct the Escrow Agent to close the transaction contemplated by such notice in accordance with the terms of said notice. At the closing, the Escrow Agent
shall complete the stock assignment held in escrow and endorsed by such Employee and shall deliver the same, together with any certificates evidencing the Unvested Shares to be transferred, to the
Company against the simultaneous delivery to the Escrow Agent of payment in the form specified in Section 6 above to such Employee for the aggregate purchase price for the Unvested Shares which
the Company has repurchased. Upon receipt of such payment the Escrow Agent shall promptly deliver such payment to such Employee. In the event the Escrow Agent tenders to the Company a certificate or
certificates for more than the number of Unvested Shares being purchased, then the Company shall deliver to the Escrow Agent an appropriate replacement certificate registered in such Employee's name,
and the Escrow Agent shall deliver such replacement certificate to such Employee. 

        (b)   Each
Employee irrevocably authorizes the Company to deposit with the Escrow Agent any certificates evidencing Shares to be held by the Escrow Agent hereunder and any
securities issued in exchange for or in respect of said Shares. Each Employee does hereby irrevocably constitute and appoint the Escrow Agent as his or her attorney-in-fact and
agent for the term of this escrow to execute with respect to such securities all documents necessary or appropriate to make such Shares and other securities negotiable and to complete any transactions
herein contemplated. Subject to the provisions of this Section 8(b), each Employee shall exercise all rights and privileges of a Employee of the Company while the Shares are held by the Escrow
Agent. 

        (c)   This
escrow shall terminate upon the earliest of (i) the election by the Company to terminate this escrow as provided in Section 8(d) below,
(ii) the election by the Company to waive the restrictions on all of the Unvested Shares pursuant to Section 6, or (iii) the Company's right to repurchase having lapsed as to all
the Unvested Shares. If at the time of such termination the Escrow Agent should have in its possession any documents, securities or other property belonging to a Employee, it shall deliver all of the
same to such Employee and shall be discharged of all further obligations hereunder. 

        (d)   The
Escrow Agent's duties hereunder may be altered, amended, modified, or revoked only by a writing signed by the Company and each Employee who holds Unvested Shares;
provided, however, that the Company may at any time, at its option, elect to terminate this escrow by notice to each Employee and the Escrow Agent. 

        (e)   The
Escrow Agent shall be obligated only for the performance of such duties as are specifically set forth herein and may rely and shall be protected in relying or
refraining from acting on any instrument reasonably believed by it to be genuine and to have been signed or presented by the proper party or parties. The Escrow Agent shall not be personally liable
for any act it may do or refrain from doing hereunder as Escrow Agent or as attorney-in-fact for the Employees, provided that the Escrow Agent acts or refrains from acting in
good faith and in the exercise of its own good judgment, and any act which it does or refrains from doing pursuant to the advice of its own attorneys shall be conclusive evidence of such good faith. 

        (f)    The
Escrow Agent is hereby expressly authorized to comply with and obey orders, judgments or decrees of any court. In case it obeys or complies with any such order,
judgment or decree, it shall not be liable to any of the parties hereto or to any other person, firm or 

5

 

corporation
by reason of such compliance, notwithstanding any such order, judgment or decree being subsequently reversed, modified, annulled, set aside, vacated or found to have been entered without
jurisdiction. 

        (g)   The
Escrow Agent shall be entitled to employ such independent legal counsel and other experts as it may deem necessary to advise it in connection with its obligations
hereunder, may rely upon the advice of such counsel, and may pay such counsel reasonable compensation therefor. 

        (h)   The
Escrow Agent reserves the right, upon notice to the Company and each Employee, to resign from its duties as Escrow Agent. 

        (i)    If
the Escrow Agent reasonably requires other or further instruments in connection with this Section 8 or obligations in respect hereto, the necessary parties
hereto shall join in furnishing such instruments. 

        (j)    It
is understood and agreed that should any dispute arise with respect to the delivery, ownership or right of possession of the Shares or other securities held by the
Escrow Agent hereunder, it is authorized and directed to retain in its possession without liability to any one all or any part of said Shares or other securities until such dispute shall have been
settled either by mutual written agreement of the parties concerned or by a final order, decree or judgment of a court of competent jurisdiction
after the time for appeal has expired and no appeal has been perfected, but it shall be under no duty whatsoever to institute or defend any such proceedings. 

        (k)   All
reasonable costs, fees and disbursements incurred by the Escrow Agent in connection with the performance of its duties hereunder shall be borne by the Company. 

        (l)    By
signing below, the Escrow Agent becomes a party to this Agreement only for the purpose of this Section 8. 

        (m)  Upon
receipt of a notice by the Escrow Agent, signed by the Company and a Employee, setting forth such number of Shares (such Shares originally delivered to the Escrow
Agent by such Employee pursuant to this Section 8 to be released from escrow (all of such Shares to be Vested Shares), the Escrow Agent shall deliver a certificate in an amount at least equal
to the number of Shares to be released to the Company. The Company shall deliver to such Employee a certificate for the number of Shares set forth in such notice and shall deliver to the Escrow Agent
a certificate for the number of shares to be held in escrow. 

        9.    Stock Transfer Record.    The Company shall not effect or record any transfer of Shares in its stock transfer
records unless such transfer is in compliance with the provisions of this Agreement. If the Employee desires to make a transfer, he or she shall furnish to the Company such evidence of compliance with
this Agreement as maybe reasonably required by the Board of Directors of, or counsel for, the Company. 

        10.    Remedies of the Company.    

        (a)    Failure to Deliver Shares to the Company.    If the Employee becomes obligated to sell any Shares to the
Company under this Agreement and fails to deliver such Shares in accordance with the terms of this Agreement, the Company, may, at its option, in addition to all other remedies it may have, send to
the Employee the purchase price for such Shares as is herein specified. Thereupon, the Company, upon written notice to the Employee, (a) shall cancel on its books the certificate or
certificates representing the Shares to be sold and (b) shall issue, in lieu thereof, in the name of the Company a new certificate or certificates representing such Shares, and thereupon all of
the Employee's rights in and to such Shares shall terminate. 

        (b)    Failure to Transfer Shares to a Third Party.    In the event that any person (a "Required Seller") shall be
required hereunder to sell Shares to a third party and is unable to or does not 

6

 

deliver
the certificate or certificates evidencing such Shares to the applicable purchaser hereunder, such purchaser may deposit the purchase price for such shares (by certified check, promissory note
or both, as the case may be) with any bank doing business in the State of New Hampshire, or with the Company's attorneys or certified public accountants, as escrow agent or trustee for such person, to
be held by such bank, attorney or accountant until withdrawn by such person. Upon such deposit by the purchaser and upon notice of the creation of said escrow or trust to such Required Seller, such
shares shall then be deemed hereby to have been sold, assigned, transferred and conveyed to such purchaser, the Required Seller shall have no further rights thereto or thereunder and the Company shall
record such transfer in its stock transfer book. 

        (c)    Specific Enforcement.    The Employee expressly agrees that the Company will be irreparably damaged if this
Agreement is not specifically enforced. Upon a breach or threatened breach of the terms, covenants and/or conditions of this Agreement by the Employee, the Company shall, in addition to all other
remedies, be entitled to a temporary or permanent injunction, without showing any actual damage, and/or a decree for specific performance, in accordance with the provisions hereof. 

        11.    Legend.    Each certificate evidencing any of the Shares shall bear a legend substantially as follows: 

"The
shares represented by this certificate are subject to restrictions on transfer and may not be sold, exchanged, transferred, pledged, hypothecated or otherwise disposed of except in accordance
with and subject to all the terms and conditions of a certain Stock Restriction Agreement dated as of May 22, 2001, a copy of which the Company wilt furnish to the holder of this certificate
upon request and without charge." 

Promptly
upon execution and delivery of this Agreement, each Employee shall deliver to the Company all certificates then held by such Employee representing Shares which do not have such legend affixed
thereto. The Company shall cause such legend to be affixed promptly to each of such certificates and such certificates to be returned promptly to the registered holder thereof. 

        12.    Delivery of Stock and Documents.    Upon the closing of any purchase of Shares pursuant to this Agreement, the
Employee shall deliver to the purchaser the certificate or certificates representing the Shares being sold, duly endorsed for transfer and bearing such documentary stamps, if any, as are necessary,
and such assignments, certificates of authority, tax releases, consents to transfer, instruments and evidences of title of the Employee and of such Employee's compliance with this Agreement as may be
reasonably required by the purchaser (or by counsel for the purchaser). 

        13.    Section 83(b) Election.    The Employee acknowledges that the Shares may be treated as subject to a
substantial risk of forfeiture within the meaning of Section 83 of the Internal Revenue Code of 1986, as amended (the "Code") and that, in the absence of an election under Section 83(b)
of the Code, such treatment could delay the determination of the tax consequences for both the Company and the Employee. In order to ensure that the tax consequences will be determined at the time of
issuance of the Shares, the Employee agrees to file an election under Section 83(b) of the Code within 30 days following the issuance, to include in the Employee's taxable income, at the
time of receipt, the difference between the fair market value of the Shares and the amount paid for such shares; provided, however, that the Company, in
its sole and absolute discretion, may waive the requirement that the Employee file such election. 

        14.    Lock-up Agreement.    The Employee agrees that in the event that the Company effects an initial
underwritten public offering of Common Stock registered under the Securities Act, the Shares and any other shares of capital stock of the Company owned by the Employee may not be sold, offered for
sale or otherwise disposed of, directly or indirectly, without the prior written consent of the 

7

 

managing
underwriter(s) of the offering, for 180 days after the execution of an underwriting agreement in connection with such offering.. 

        15.    General.    

        (a)    Notices.    Any and all notices, requests or other communications hereunder shall be given in writing and
delivered in person or sent by registered or certified mail, return receipt requested, postage prepaid; and such notices shall be addressed: (i) if to the Company, to the President of the
Company at its principal office; and (ii) if to the Employee, to the address of the Employee as reflected in the records of the Company, unless notice of a change of address is furnished to all
parties in the manner provided in this Section 15(a). Any notice which is required to be made within a stated period of time shall be considered timely if delivered or mailed as provided above
before midnight of the last day of such period. 

        (b)    Severability.    The invalidity or unenforceability of any particular provision of this Agreement shall not
affect the other provisions hereof, and this Agreement shall be construed in all respects as if such invalid or unenforceable provision were omitted, provided that such construction shall not
substantially impair the bargained-for rights of either party hereto. 

        (c)    Benefit and Burden; Assigns.    This Agreement shall inure to the benefit of, and all be binding upon, the
parties hereto and their legatees, distributes, estates, executors, administrators, personal representatives, successors and assigns, and other legal representatives. The Company may assign its
rights under Sections 6, 7 and 8 hereof, in whole or in part, to any person or persons designated by the Board of Directors of the Company. 

        (d)    Headings.    The headings, subheadings and other captions in this Agreement are for convenience and reference
only and shall not be used in interpreting, construing or enforcing any of the provisions of this Agreement. 

        (e)    Existing Agreements.    This Agreement does not and shall not be construed to limit or impair the right of the
Company under any other agreement or understanding with the Employee. 

        (f)    Entire Agreement; Amendments; Conflicts.    This Agreement constitutes the entire agreement of the parties with
respect to the subject matter hereof and neither this Agreement nor any provision hereof may be waived, modified, amended or terminated except by a written agreement signed by the parties hereto. To
the extent any term or other provision of any other indenture, agreement or instrument by which any party hereto is bound conflicts with this Agreement, this Agreement shall have precedence over such
conflicting term or provision. 

        (g)    Governing Law.    This Agreement, and any claims relating to the relationship of the parties contemplated
herein, whether or not arising directly under this Agreement, shall be governed by the laws of the State of New Hampshire without reference to its conflicts of laws provisions. 

        (h)    Waivers.    No waiver of any breach or default hereunder shall be considered valid unless in writing, and no
such waiver shall be deemed a waiver of any subsequent breach or default of the same or similar nature. 

        (i)    Continuation of Employment.    Nothing in this Agreement shall create an obligation on the Company to continue
the Employee's employment with the Company. 

        (j)    Counterparts.    This Agreement may be executed in two or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument. 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK] 

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        IN
WITNESS WHEREOF, this Employee Stock Restriction Agreement has been executed as of the date and year first above written. 

	 	 	COMPANY:
	

 	
 	

EQUALLOGIC, INC.
	

 	
 	

By:	
 	

	

 	
 	

Title:	
 	

	

 	
 	

Address:	
 	

	

 	
 	

 	
 	

	

 	
 	

EMPLOYEE:
	

 	
 	

 	
 	

	

 	
 	

Address:	
 	

	

 	
 	

 	
 	

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QuickLinks

EMPLOYEE STOCK PURCHASE AND RESTRICTION AGREEMENT

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