Document:

2007 Equity Incentive Plan and forms of agreement thereunder

 Exhibit 10.2 

FORCE10 NETWORKS, INC. 

2007 EQUITY INCENTIVE PLAN 

As Adopted on January 29, 2007 

As Approved by the Stockholders on January 30, 2007 

Amended by the Board of Directors: February 6, 2008 

Amendment Adopted by the Stockholders: March 5, 2008 

Amended by the Board of Directors: 

approved December 29, 2008 and effective as of March 31, 2009 

Amendment Adopted by the Stockholders: March 20, 2009 

Amended by the Board of Directors: 

approved May 14, 2009 and effective as of June 18, 2009 

Amendment Adopted by the Stockholders: June 18, 2009 

Amended by the Board of Directors: November 4, 2009 

Amendment Adopted by the Stockholders: November 12, 2009 

1. PURPOSE. The purpose of this Plan is to provide incentives to attract, retain and motivate
eligible persons whose present and potential contributions are important to the success of the Company, its Parent and Subsidiaries, by offering them an opportunity to participate in the Company’s future performance through awards of Options
and Restricted Stock. Capitalized terms not defined in the text are defined in Section 22 hereof. Although this Plan is intended to be a written compensatory benefit plan within the meaning of Rule 701 promulgated under the Securities Act,
grants may be made pursuant to this plan which do not qualify for exemption under Rule 701 or Section 25102(o) of the California Corporations Code. Any requirement of this Plan which is required in law only because of Section 25102(o) need
not apply if the Committee so provides. 
 2. SHARES SUBJECT TO THE PLAN. 

2.1 Number of Shares Available. Subject to Sections 2.2 and 17, the total number of Shares reserved and
available for grant and issuance pursuant to this Plan will be 10,924,040 Shares. Subject to Sections 2.2, 5.10 and 17 hereof, Shares subject to Awards previously granted will again be available for grant and issuance in connection with future
Awards under this Plan to the extent such Shares: (i) cease to be subject to issuance upon exercise of an Option, other than due to exercise of such Option; (ii) are subject to an Award granted hereunder but the Shares subject to such
Award are forfeited or repurchased by the Company at the original issue price; or (iii) are subject to an Award that otherwise terminates without Shares being issued. At all times the Company will reserve and keep available a sufficient number
of Shares as will be required to satisfy the requirements of all Awards granted and outstanding under this Plan. 

 2.2 Adjustment of Shares. In the event that the number of
outstanding shares of the Company’s Common Stock is changed by a stock dividend, recapitalization, stock split, reverse stock split, subdivision, combination, reclassification or similar change in the capital structure of the Company without
consideration, then (i) the number of Shares reserved for issuance under this Plan, (ii) the Exercise Prices of and number of Shares subject to outstanding Options and (iii) the Purchase Prices of and number of Shares subject to other
outstanding Awards will be proportionately adjusted, subject to any required action by the Board or the stockholders of the Company and compliance with applicable securities laws; provided, however, that fractions of a Share will not be issued but
will either be paid in cash at the Fair Market Value of such fraction of a Share or will be rounded down to the nearest whole Share, as determined by the Committee; and provided, further, that the Exercise Price of any Option may not be decreased to
below the par value of the Shares. 
 3. ELIGIBILITY. ISOs (as defined in Section 5 hereof)
may be granted only to employees (including officers and directors who are also employees) of the Company or of a Parent or Subsidiary of the Company. NQSOs (as defined in Section 5 hereof) and Restricted Stock Awards may be granted to
employees, officers, directors and consultants of the Company or any Parent or Subsidiary of the Company; provided such consultants render bona fide services not in connection with the offer and sale of securities in a capital-raising transaction. A
person may be granted more than one Award under this Plan. 
 4. ADMINISTRATION. 

4.1 Committee Authority. This Plan will be administered by the Committee or the Board if no Committee is
created by the Board. Subject to the general purposes, terms and conditions of this Plan, and to the direction of the Board, the Committee will have full power to implement and carry out this Plan. Without limitation, the Committee will have the
authority to: 
 (a) construe and interpret this Plan, any Award Agreement and any other agreement or document
executed pursuant to this Plan; 
 (b) prescribe, amend and rescind rules and regulations relating to this
Plan; 
 (c) approve persons to receive Awards; 

(d) determine the form and terms of Awards; 

(e) determine the number of Shares or other consideration subject to Awards; 

(f) determine whether Awards will be granted singly, in combination with, in tandem with, in replacement of, or as
alternatives to, other Awards under this Plan or awards under any other incentive or compensation plan of the Company or any Parent or Subsidiary of the Company; 

 

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 (g) grant waivers of any conditions of this Plan or any Award; 

(h) determine the terms of vesting, exercisability and payment of Awards; 

(i) correct any defect, supply any omission, or reconcile any inconsistency in this Plan, any Award, any Award
Agreement, any Exercise Agreement or any Restricted Stock Purchase Agreement; 
 (j) determine whether an Award
has been earned; 
 (k) make all other determinations necessary or advisable for the administration of this
Plan; and 
 (l) extend the vesting period beyond a Participant’s Termination Date. 

4.2 Committee Discretion. Unless in contravention of any express terms of this Plan or Award, any
determination made by the Committee with respect to any Award will be made in its sole discretion either (i) at the time of grant of the Award, or (ii) subject to Section 5.9 hereof, at any later time. Any such determination will be
final and binding on the Company and on all persons having an interest in any Award under this Plan. The Committee may delegate to one or more officers of the Company the authority to grant an Award under this Plan, provided such officer or officers
are members of the Board. 
 5. OPTIONS. The Committee may grant Options to eligible persons
described in Section 3 hereof and will determine whether such Options will be Incentive Stock Options within the meaning of the Code (“ISOs”) or Nonqualified Stock Options (“NQSOs”), the number of
Shares subject to the Option, the Exercise Price of the Option, the period during which the Option may be exercised, and all other terms and conditions of the Option, subject to the following: 

5.1 Form of Option Grant. Each Option granted under this Plan will be evidenced by an Award Agreement which
will expressly identify the Option as an ISO or an NQSO (“Stock Option Agreement”), and will be in such form and contain such provisions (which need not be the same for each Participant) as the Committee may from time to time
approve, and which will comply with and be subject to the terms and conditions of this Plan. 
 5.2 Date
of Grant. The date of grant of an Option will be the date on which the Committee makes the determination to grant such Option, unless a later date is otherwise specified by the Committee. The Stock Option Agreement and a copy of this Plan
will be delivered to the Participant within a reasonable time after the granting of the Option. 
 5.3
Exercise Period. Options may be exercisable immediately but subject to repurchase pursuant to Section 11 hereof or may be exercisable within the times or upon the events determined by the Committee as set forth in the Stock Option
Agreement governing such Option; provided, however, that no Option will be exercisable after the expiration of ten (10) years from the date the Option is granted; and provided further that no ISO granted to a person who directly or by
attribution owns more than ten percent (10%) of the total combined voting 
  

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power of all classes of stock of the Company or of any Parent or Subsidiary of the Company (“Ten Percent Stockholder”) will be exercisable after the expiration of five
(5) years from the date the ISO is granted. The Committee also may provide for Options to become exercisable at one time or from time to time, periodically or otherwise, in such number of Shares or percentage of Shares as the Committee
determines. Subject to earlier termination of the Option as provided herein, to the extent section 25102(o) of the California Corporations Code is intended to apply, each Participant who is not an officer, director or consultant of the Company or of
a Parent or Subsidiary of the Company shall have the right to exercise an Option granted hereunder at the rate of no less than twenty percent (20%) per year over five (5) years from the date such Option is granted. 

5.4 Exercise Price. The Exercise Price of an Option will be determined by the Committee when the Option is
granted and may not be less than eighty-five percent (85%) of the Fair Market Value of the Shares on the date of grant; provided that (i) the Exercise Price of an ISO will not be less than one hundred percent (100%) of the Fair Market
Value of the Shares on the date of grant and (ii) the Exercise Price of any Option granted to a Ten Percent Stockholder will not be less than one hundred ten percent (110%) of the Fair Market Value of the Shares on the date of grant.
Payment for the Shares purchased must be made in accordance with Section 7 hereof. 
 5.5 Method of
Exercise. Options may be exercised only by delivery to the Company of a written stock option exercise agreement (the “Exercise Agreement”) in a form approved by the Committee (which need not be the same for each
Participant). The Exercise Agreement will state (i) the number of Shares being purchased, (ii) the restrictions imposed on the Shares purchased under such Exercise Agreement, if any, and (iii) such representations and agreements
regarding Participant’s investment intent and access to information and other matters, if any, as may be required or desirable by the Company to comply with applicable securities laws. Participant shall execute and deliver to the Company the
Exercise Agreement together with payment in full of the Exercise Price, and any applicable taxes, for the number of Shares being purchased. 

5.6 Termination. Subject to earlier termination pursuant to Sections 17 and 18 hereof and
notwithstanding the exercise periods set forth in the Stock Option Agreement, exercise of an Option will always be subject to the following: 

(a) If the Participant is Terminated for any reason other than death, Disability or for Cause, then the Participant may
exercise such Participant’s Options only to the extent that such Options are exercisable as to Vested Shares upon the Termination Date or as otherwise determined by the Committee. Such Options must be exercised by the Participant, if at all, as
to all or some of the Vested Shares calculated as of the Termination Date or such other date determined by the Committee, within three (3) months after the Termination Date (or within such shorter time period, not less than thirty
(30) days, or within such longer time period, not exceeding five (5) years, after the Termination Date as may be determined by the Committee, with any exercise beyond three (3) months after the Termination Date deemed to be an NQSO)
but in any event, no later than the expiration date of the Options. 
  

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 (b) If the Participant is Terminated because of Participant’s death or
Disability (or the Participant dies within three (3) months after a Termination other than for Cause), then Participant’s Options may be exercised only to the extent that such Options are exercisable as to Vested Shares by Participant on
the Termination Date or as otherwise determined by the Committee. Such options must be exercised by Participant (or Participant’s legal representative or authorized assignee), if at all, as to all or some of the Vested Shares calculated as of
the Termination Date or such other date determined by the Committee, within twelve (12) months after the Termination Date (or within such shorter time period, not less than six (6) months, or within such longer time period, not exceeding
five (5) years, after the Termination Date as may be determined by the Committee, with any exercise beyond (i) three (3) months after the Termination Date when the Termination is for any reason other than the Participant’s death
or disability, within the meaning of Section 22(e)(3) of the Code, or (ii) twelve (12) months after the Termination Date when the Termination is for Participant’s disability, within the meaning of Section 22(e)(3) of the
Code, deemed to be an NQSO) but in any event no later than the expiration date of the Options. 
 (c) If the
Participant is terminated for Cause, the Participant may exercise such Participant’s Options, but not to an extent greater than such Options are exercisable as to Vested Shares upon the Termination Date and Participant’s Options shall
expire on such Participant’s Termination Date, or at such later time and on such conditions as are determined by the Committee. 

5.7 Limitations on Exercise. The Committee may specify a reasonable minimum number of Shares that may be
purchased on any exercise of an Option, provided that such minimum number will not prevent Participant from exercising the Option for the full number of Shares for which it is then exercisable. 

5.8 Limitations on ISOs. The aggregate Fair Market Value (determined as of the date of grant) of Shares
with respect to which ISOs are exercisable for the first time by a Participant during any calendar year (under this Plan or under any other incentive stock option plan of the Company or any Parent or Subsidiary of the Company) will not exceed One
Hundred Thousand Dollars ($100,000). If the Fair Market Value of Shares on the date of grant with respect to which ISOs are exercisable for the first time by a Participant during any calendar year exceeds One Hundred Thousand Dollars ($100,000),
then the Options for the first One Hundred Thousand Dollars ($100,000) worth of Shares to become exercisable in such calendar year will be ISOs and the Options for the amount in excess of One Hundred Thousand Dollars ($100,000) that become
exercisable in that calendar year will be NQSOs. In the event that the Code or the regulations promulgated thereunder are amended after the Effective Date (as defined in Section 18 hereof) to provide for a different limit on the Fair Market
Value of Shares permitted to be subject to ISOs, then such different limit will be automatically incorporated herein and will apply to any Options granted after the effective date of such amendment. 

5.9 Modification, Extension or Renewal. The Committee may modify, extend or renew outstanding Options and
authorize the grant of new Options in substitution therefor, provided that any such action may not, without the written consent of a Participant, impair any of such Participant’s rights under any Option previously granted. Any outstanding ISO
that is modified, extended, renewed or otherwise altered will be treated in accordance with 
  

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Section 424(h) of the Code. Subject to Section 5.10 hereof, the Committee may reduce the Exercise Price of outstanding Options without the consent of Participants by a written notice to
them; provided, however, that the Exercise Price may not be reduced below the minimum Exercise Price that would be permitted under Section 5.4 hereof for Options granted on the date the action is taken to reduce the Exercise Price; provided,
further, that the Exercise Price will not be reduced below the par value of the Shares, if any. 
 5.10 No
Disqualification. Notwithstanding any other provision in this Plan, no term of this Plan relating to ISOs will be interpreted, amended or altered, nor will any discretion or authority granted under this Plan be exercised, so as to disqualify
this Plan under Section 422 of the Code or, without the consent of the Participant, to disqualify any Participant’s ISO under Section 422 of the Code. In no event shall the total number of Shares issued (counting each reissuance of a
Share that was previously issued and then forfeited or repurchased by the Company as a separate issuance) under the Plan upon exercise of ISOs exceed 6,000,000 Shares (adjusted in proportion to any adjustments under Section 2.2 hereof) over the
term of the Plan. 
 6. RESTRICTED STOCK. A Restricted Stock Award is an offer by the Company to
sell to an eligible person Shares that are subject to certain specified restrictions. The Committee will determine to whom an offer will be made, the number of Shares the person may purchase, the Purchase Price, the restrictions to which the Shares
will be subject, and all other terms and conditions of the Restricted Stock Award, subject to the following: 

6.1 Form of Restricted Stock Award. All purchases under a Restricted Stock Award made pursuant to this Plan
will be evidenced by an Award Agreement (“Restricted Stock Purchase Agreement”) that will be in such form (which need not be the same for each Participant) as the Committee will from time to time approve, and will comply with
and be subject to the terms and conditions of this Plan. The Restricted Stock Award will be accepted by the Participant’s execution and delivery of the Restricted Stock Purchase Agreement and full payment for the Shares to the Company within
thirty (30) days from the date the Restricted Stock Purchase Agreement is delivered to the person. If such person does not execute and deliver the Restricted Stock Purchase Agreement along with full payment for the Shares to the Company within
such thirty (30) days, then the offer will terminate, unless otherwise determined by the Committee. 

6.2 Purchase Price. The Purchase Price of Shares sold pursuant to a Restricted Stock Award will be
determined by the Committee and will be at least eighty-five percent (85%) of the Fair Market Value of the Shares on the date the Restricted Stock Award is granted or at the time the purchase is consummated, except in the case of a sale to a
Ten Percent Stockholder, in which case the Purchase Price will be one hundred percent (100%) of the Fair Market Value on the date the Restricted Stock Award is granted or at the time the purchase is consummated. Payment of the Purchase Price
must be made in accordance with Section 7 hereof. 
 6.3 Restrictions. Restricted Stock
Awards may be subject to the restrictions set forth in Section 11 hereof or such other restrictions not inconsistent with Section 25102(o) of the California Corporations Code. 

 

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 7. PAYMENT FOR SHARE PURCHASES. 

7.1 Payment. Payment for Shares purchased pursuant to this Plan may be made in cash (by check) or, where
expressly approved for the Participant by the Committee and where permitted by law: 
 (a) by cancellation of
indebtedness of the Company owed to the Participant; 
 (b) by surrender of shares that: (i) either
(A) have been owned by Participant for more than six (6) months and have been paid for within the meaning of SEC Rule 144 (and, if such shares were purchased from the Company by use of a promissory note, such note has been fully paid
with respect to such shares) or (B) were obtained by Participant in the public market and (ii) are clear of all liens, claims, encumbrances or security interests; 

(c) by tender of a full recourse promissory note having such terms as may be approved by the Committee and bearing
interest at a rate sufficient to avoid (i) imputation of income under Sections 483 and 1274 of the Code and (ii) variable accounting treatment under Financial Accounting Standards Board Interpretation No. 44 to APB No. 25;
provided, however, that Participants who are not employees or directors of the Company will not be entitled to purchase Shares with a promissory note unless the note is adequately secured by collateral other than the Shares; provided, further, that
the portion of the Exercise Price or Purchase Price, as the case may be, equal to the par value of the Shares must be paid in cash or other legal consideration permitted by Delaware General Corporation Law; 

(d) by waiver of compensation due or accrued to the Participant from the Company for services rendered; 

(e) with respect only to purchases upon exercise of an Option, and provided that a public market for the Company’s
stock exists: 
 (i) through a “same day sale” commitment from the Participant and a broker-dealer
that is a member of the National Association of Securities Dealers (an “NASD Dealer”) whereby the Participant irrevocably elects to exercise the Option and to sell a portion of the Shares so purchased sufficient to pay the
total Exercise Price, and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to forward the total Exercise Price directly to the Company; or 

(ii) through a “margin” commitment from the Participant and an NASD Dealer whereby the Participant irrevocably
elects to exercise the Option and to pledge the Shares so purchased to the NASD Dealer in a margin account as security for a loan from the NASD Dealer in the amount of the total Exercise Price, and whereby the NASD Dealer irrevocably commits upon
receipt of such Shares to forward the total Exercise Price directly to the Company; or 
 (f) by any
combination of the foregoing. 
  

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 7.2 Loan Guarantees. The Committee may, in its sole
discretion, elect to assist the Participant in paying for Shares purchased under this Plan by authorizing a guarantee by the Company of a third-party loan to the Participant. 

8. WITHHOLDING TAXES. 

8.1 Withholding Generally. Whenever Shares are to be issued in satisfaction of Awards granted under this
Plan, the Company may require the Participant to remit to the Company an amount sufficient to satisfy federal, state and local withholding tax requirements prior to the delivery of any certificate or certificates for such Shares. Whenever, under
this Plan, payments in satisfaction of Awards are to be made in cash by the Company, such payment will be net of an amount sufficient to satisfy federal, state, and local withholding tax requirements. 

8.2 Stock Withholding. When, under applicable tax laws, a Participant incurs tax liability in connection
with the exercise or vesting of any Award that is subject to tax withholding and the Participant is obligated to pay the Company the amount required to be withheld, the Committee may in its sole discretion allow the Participant to satisfy the
minimum withholding tax obligation by electing to have the Company withhold from the Shares to be issued that minimum number of Shares having a Fair Market Value equal to the minimum amount required to be withheld, determined on the date that the
amount of tax to be withheld is to be determined; but in no event will the Company withhold Shares if such withholding would result in adverse accounting consequences to the Company. All elections by a Participant to have Shares withheld for this
purpose will be made in accordance with the requirements established by the Committee for such elections and be in writing in a form acceptable to the Committee. 

9. PRIVILEGES OF STOCK OWNERSHIP. 

9.1 Voting and Dividends. No Participant will have any of the rights of a stockholder with respect to any
Shares until the Shares are issued to the Participant. After Shares are issued to the Participant, the Participant will be a stockholder and have all the rights of a stockholder with respect to such Shares, including the right to vote and receive
all dividends or other distributions made or paid with respect to such Shares; provided, that if such Shares are Restricted Stock, then any new, additional or different securities the Participant may become entitled to receive with respect to such
Shares by virtue of a stock dividend, stock split or any other change in the corporate or capital structure of the Company will be subject to the same restrictions as the Restricted Stock. The Participant will have no right to retain such stock
dividends or stock distributions with respect to Unvested Shares that are repurchased pursuant to Section 11 hereof. To the extent required, the Company will comply with Section 260.140.1 of Title 10 of the California Code of
Regulations with respect to the voting rights of Common Stock. 
 9.2 Financial Statements. The
Company will provide financial statements to each Participant annually during the period such Participant has Awards outstanding, or as otherwise required under Section 260.140.46 of Title 10 of the California Code of Regulations.
Notwithstanding the foregoing, the Company will not be required to provide such financial statements to Participants when issuance of Awards is limited to key employees whose services in connection with the Company assure them access to equivalent
information. 
  

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 10. TRANSFERABILITY. Except as permitted by the
Committee, Awards granted under this Plan, and any interest therein, will not be transferable or assignable by Participant, other than by will or by the laws of descent and distribution, and, with respect to NQSOs, by instrument 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 17 C.F.R. 240.16a-1(e), and may not be made subject to
execution, attachment or similar process. During the lifetime of the Participant an Award will be exercisable only by the Participant or Participant’s legal representative and any elections with respect to an Award may be made only by the
Participant or Participant’s legal representative. 
 11. RESTRICTIONS ON SHARES. 

11.1 Right of First Refusal. At the discretion of the Committee, the Company may reserve to itself and/or
its assignee(s) in the Award Agreement a right of first refusal to purchase all Shares that a Participant (or a subsequent transferee) may propose to transfer to a third party, unless otherwise not permitted by Section 25102(o) of the
California Corporations Code, provided that such right of first refusal terminates upon the Company’s initial public offering of Common Stock pursuant to an effective registration statement filed under the Securities Act. 

11.2 Right of Repurchase. At the discretion of the Committee, the Company may reserve to itself and/or its
assignee(s) in the Award Agreement a right to repurchase Unvested Shares held by a Participant for cash and/or cancellation of purchase money indebtedness owed to the Company by the Participant following such Participant’s Termination at any
time within the later of ninety (90) days after the Participant’s Termination Date and the date the Participant purchases Shares under the Plan at the Participant’s Exercise Price or Purchase Price, as the case may be, provided that
to the extent Section 25102(o) of the California Corporations Code is intended to apply, unless the Participant is an officer, director or consultant of the Company or of a Parent or Subsidiary of the Company, such right of repurchase lapses at
the rate of no less than twenty percent (20%) per year over five (5) years from: (a) the date of grant of the Option or (b) in the case of Restricted Stock, the date the Participant purchases the Shares. 

12. CERTIFICATES. All certificates for Shares or other securities delivered under this Plan will be
subject to such stock transfer orders, legends and other restrictions as the Committee may deem necessary or advisable, including restrictions under any applicable federal, state or foreign securities law, or any rules, regulations and other
requirements of the SEC or any stock exchange or automated quotation system upon which the Shares may be listed or quoted. 

13. ESCROW; PLEDGE OF SHARES. To enforce any restrictions on a Participant’s Shares set forth
in Section 11 hereof, the Committee may require the Participant to deposit all certificates representing Shares, together with stock powers or other instruments of transfer approved by the Committee, appropriately endorsed in blank, with the
Company or an agent designated by the Company to hold in escrow until such restrictions have lapsed or 
  

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terminated. The Committee may cause a legend or legends referencing such restrictions to be placed on the certificates. Any Participant who is permitted to execute a promissory note as partial or
full consideration for the purchase of Shares under this Plan will be required to pledge and deposit with the Company all or part of the Shares so purchased as collateral to secure the payment of Participant’s obligation to the Company under
the promissory note; provided, however, that the Committee may require or accept other or additional forms of collateral to secure the payment of such obligation and, in any event, the Company will have full recourse against the Participant under
the promissory note notwithstanding any pledge of the Participant’s Shares or other collateral. In connection with any pledge of the Shares, Participant will be required to execute and deliver a written pledge agreement in such form as the
Committee will from time to time approve. The Shares purchased with the promissory note may be released from the pledge on a pro rata basis as the promissory note is paid. 

14. EXCHANGE AND BUYOUT OF AWARDS. The Committee may, at any time or from time to time, authorize the
Company, with the consent of the respective Participants, to issue new Awards in exchange for the surrender and cancellation of any or all outstanding Awards. The Committee may at any time buy from a Participant an Award previously granted with
payment in cash, shares of Common Stock of the Company (including Restricted Stock) or other consideration, based on such terms and conditions as the Committee and the Participant may agree. 

15. SECURITIES LAW AND OTHER REGULATORY COMPLIANCE. Although this Plan is intended to be a
written compensatory benefit plan within the meaning of Rule 701 promulgated under the Securities Act, grants may be made pursuant to this plan that do not qualify for exemption under Rule 701 or Section 25102(o) of the California
Corporations Code. Any requirement of this Plan which is required in law only because of Section 25102(o) need not apply if the Committee so provides. An Award will not be effective unless such Award is in compliance with all applicable federal
and state securities laws, rules and regulations of any governmental body, and the requirements of any stock exchange or automated quotation system upon which the Shares may then be listed or quoted, as they are in effect on the date of grant of the
Award and also on the date of exercise or other issuance. Notwithstanding any other provision in this Plan, the Company will have no obligation to issue or deliver certificates for Shares under this Plan prior to (i) obtaining any approvals
from governmental agencies that the Company determines are necessary or advisable, and/or (ii) compliance with any exemption, completion of any registration or other qualification of such Shares under any state or federal law or ruling of any
governmental body that the Company determines to be necessary or advisable. The Company will be under no obligation to register the Shares with the SEC or to effect compliance with the exemption, registration, qualification or listing requirements
of any state securities laws, stock exchange or automated quotation system, and the Company will have no liability for any inability or failure to do so. 

16. NO OBLIGATION TO EMPLOY. Nothing in this Plan or any Award granted under this Plan will
confer or be deemed to confer on any Participant any right to continue in the employ of, or to continue any other relationship with, the Company or any Parent or Subsidiary of the Company or limit in any way the right of the Company or any Parent or
Subsidiary of the Company to terminate Participant’s employment or other relationship at any time, with or without Cause. 
  

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 17. CORPORATE TRANSACTIONS. 

17.1 Assumption or Replacement of Awards by Successor or Acquiring Company. In the event of
(i) a dissolution or liquidation of the Company, (ii) any reorganization, consolidation, merger or similar transaction or series of related transactions (each, a “combination transaction”)) in which the Company is a
constituent corporation or is a party if, as a result of such combination transaction, the voting securities of the Company that are outstanding immediately prior to the consummation of such combination transaction (other than any such
securities that are held by an “Acquiring Stockholder”, as defined below) do not represent, or are not converted into, securities of the surviving corporation of such combination transaction (or such surviving corporation’s parent
corporation if the surviving corporation is owned by the parent corporation) that, immediately after the consummation of such combination transaction, together possess at least a majority of the total voting power of all securities of such surviving
corporation (or its parent corporation, if applicable) that are outstanding immediately after the consummation of such combination transaction, including securities of such surviving corporation (or its parent corporation, if applicable) that are
held by the Acquiring Stockholder; or (b) a sale of all or substantially all of the assets of the Company, that is followed by the distribution of the proceeds to the Company’s stockholders, any or all outstanding Awards may be assumed,
converted or replaced by the successor or acquiring corporation (if any), which assumption, conversion or replacement will be binding on all Participants. In the alternative, the successor or acquiring corporation may substitute equivalent Awards or
provide substantially similar consideration to Participants as was provided to stockholders of the Company (after taking into account the existing provisions of the Awards). The successor or acquiring corporation may also substitute by issuing, in
place of outstanding Shares of the Company held by the Participant, substantially similar shares or other property subject to repurchase restrictions and other provisions no less favorable to the Participant than those which applied to such
outstanding Shares immediately prior to such transaction described in this Section 1717.1. For purposes of this Section 17.1, an “Acquiring Stockholder” means a stockholder or stockholders of the Company that
(i) merges or combines with the Company in such combination transaction or (ii) owns or controls a majority of another corporation that merges or combines with the Corporation in such combination transaction. In the event such
successor or acquiring corporation (if any) does not assume, convert, replace or substitute Awards, as provided above, pursuant to a transaction described in this Section 1717.1, then notwithstanding any other provision in this Plan to the
contrary, the vesting of such Awards will accelerate and the Options will become exercisable in full prior to the consummation of such event at such times and on such conditions as the Committee determines, and if such Options are not exercised
prior to the consummation of the corporate transaction, they shall terminate in accordance with the provisions of this Plan. 

17.2 Other Treatment of Awards. Subject to any greater rights granted to Participants under the foregoing
provisions of this Section 17, in the event of the occurrence of any transaction described in Section 17.1 hereof, any outstanding Awards will be treated as provided in the applicable agreement or plan of reorganization, merger,
consolidation, dissolution, liquidation or sale of assets. 
  

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 17.3 Assumption of Awards by the Company. The Company, from
time to time, also may substitute or assume outstanding awards granted by another company, whether in connection with an acquisition of such other company or otherwise, by either (i) granting an Award under this Plan in substitution of such
other company’s award or (ii) assuming such award as if it had been granted under this Plan if the terms of such assumed award could be applied to an Award granted under this Plan. Such substitution or assumption will be permissible if the
holder of the substituted or assumed award would have been eligible to be granted an Award under this Plan if the other company had applied the rules of this Plan to such grant. In the event the Company assumes an award granted by another company,
the terms and conditions of such award will remain unchanged (except that the exercise price and the number and nature of shares issuable upon exercise of any such option will be adjusted appropriately pursuant to Section 424(a) of the Code).
In the event the Company elects to grant a new Option rather than assuming an existing option, such new Option may be granted with a similarly adjusted Exercise Price. 

18. ADOPTION AND STOCKHOLDER APPROVAL. This Plan will become effective on the date that it is
adopted by the Board (the “Effective Date”). This Plan will be approved by the stockholders of the Company (excluding Shares issued pursuant to this Plan), consistent with applicable laws, within twelve (12) months
before or after the Effective Date. Upon the Effective Date, the Board may grant Awards pursuant to this Plan; provided, however, that: (i) no Option may be exercised prior to initial stockholder approval of this Plan; (ii) no Option
granted pursuant to an increase in the number of Shares approved by the Board shall be exercised prior to the time such increase has been approved by the stockholders of the Company; (iii) in the event that initial stockholder approval is not
obtained within the time period provided herein, all Awards granted hereunder shall be canceled, any Shares issued pursuant to any Award shall be canceled and any purchase of Shares issued hereunder shall be rescinded; and (iv) Awards granted
pursuant to an increase in the number of Shares approved by the Board which increase is not timely approved by stockholders shall be canceled, any Shares issued pursuant to any such Awards shall be canceled, and any purchase of Shares subject to any
such Award shall be rescinded. 
 19. TERM OF PLAN/GOVERNING LAW. Unless earlier
terminated as provided herein, this Plan will terminate ten (10) years from the Effective Date or, if earlier, the date of stockholder approval. This Plan and all agreements hereunder shall be governed by and construed in accordance with the
laws of the State of California. 
 20. AMENDMENT OR TERMINATION OF PLAN. Subject to
Section 5.9 hereof, the Board may at any time terminate or amend this Plan in any respect, including without limitation amendment of any form of Award Agreement or instrument to be executed pursuant to this Plan; provided, however, that the
Board will not, without the approval of the stockholders of the Company, amend this Plan in any manner that requires such stockholder approval pursuant to Section 25102(o) of the California Corporations Code or the Code or the regulations
promulgated thereunder as such provisions apply to ISO plans. 
 21. NONEXCLUSIVITY OF THE
PLAN. Neither the adoption of this Plan by the Board, the submission of this Plan to the stockholders of the Company for approval, nor any provision of this Plan will be construed as creating any limitations on the power of the Board
to adopt such additional compensation arrangements as it may deem desirable, including, without limitation, the granting of stock options and other equity awards otherwise than under this Plan, and such arrangements may be either generally
applicable or applicable only in specific cases. 
  

 12 

 22. DEFINITIONS. As used in this Plan, the
following terms will have the following meanings: 
 “Award” means any award under this
Plan, including any Option or Restricted Stock Award. 
 “Award Agreement” means, with
respect to each Award, the signed written agreement between the Company and the Participant setting forth the terms and conditions of the Award, including the Stock Option Agreement and Restricted Stock Agreement. 

“Board” means the Board of Directors of the Company. 

“Cause” means Termination because of (i) any willful, material violation by the Participant
of any law or regulation applicable to the business of the Company or a Parent or Subsidiary of the Company, the Participant’s conviction for, or guilty plea to, a felony or a crime involving moral turpitude, or any willful perpetration by the
Participant of a common law fraud, (ii) the Participant’s commission of an act of personal dishonesty which involves personal profit in connection with the Company or any other entity having a business relationship with the Company,
(iii) any material breach by the Participant of any provision of any agreement or understanding between the Company or any Parent or Subsidiary of the Company and the Participant regarding the terms of the Participant’s service as an
employee, officer, director or consultant to the Company or a Parent or Subsidiary of the Company, including without limitation, the willful and continued failure or refusal of the Participant to perform the material duties required of such
Participant as an employee, officer, director or consultant of the Company or a Parent or Subsidiary of the Company, other than as a result of having a Disability, or a breach of any applicable invention assignment and confidentiality agreement or
similar agreement between the Company or a Parent or Subsidiary of the Company and the Participant, (iv) Participant’s disregard of the policies of the Company or any Parent or Subsidiary of the Company so as to cause loss, damage or
injury to the property, reputation or employees of the Company or a Parent or Subsidiary of the Company, or (v) any other misconduct by the Participant which is materially injurious to the financial condition or business reputation of, or is
otherwise materially injurious to, the Company or a Parent or Subsidiary of the Company. 

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

“Committee” means the committee created and appointed by the Board to administer this Plan, or if
no committee is created and appointed, the Board. 
 “Company” means Force10 Networks,
Inc., or any successor corporation. 
 “Disability” means a disability, whether
temporary or permanent, partial or total, as determined by the Committee. 
 “Exercise
Price” means the price at which a holder of an Option may purchase the Shares issuable upon exercise of the Option. 
  

 13 

 “Fair Market Value” means, as of any date, the value
of a share of the Company’s Common Stock determined as follows: 
 (a) if such Common Stock is then quoted
on the Nasdaq National Market, its closing price on the Nasdaq National Market on the date of determination as reported in The Wall Street Journal; 

(b) if such Common Stock is publicly traded and is then listed on a national securities exchange, its closing price on
the date of determination on the principal national securities exchange on which the Common Stock is listed or admitted to trading as reported in The Wall Street Journal; 

(c) if such Common Stock is publicly traded but is not quoted on the Nasdaq National Market nor listed or admitted to
trading on a national securities exchange, the average of the closing bid and asked prices on the date of determination as reported by The Wall Street Journal (or, if not so reported, as otherwise reported by any newspaper or other source as
the Board may determine); or 
 (d) if none of the foregoing is applicable, by the Committee in good faith.

 “Option” means an award of an option to purchase Shares pursuant to Section 5
hereof. 
 “Parent” means any corporation (other than the Company) in an unbroken chain
of corporations ending with the Company if each of such corporations other than the Company owns stock representing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such
chain. 
 “Participant” means a person who receives an Award under this Plan.

 “Plan” means this Turin Networks, Inc. 2006 Equity Incentive Plan, as amended from
time to time. 
 “Purchase Price” means the price at which a Participant may purchase
Restricted Stock. 
 “Restricted Stock” means Shares purchased pursuant to a Restricted
Stock Award. 
 “Restricted Stock Award” means an award of Shares pursuant to
Section 6 hereof. 
 “SEC” means the Securities and Exchange Commission.

 “Securities Act” means the Securities Act of 1933, as amended. 

 

 14 

 “Shares” means shares of the Company’s Common
Stock par value, reserved for issuance under this Plan, as adjusted pursuant to Sections 2 and 17 hereof, and any successor security. 

“Subsidiary” means any corporation (other than the Company) in an unbroken chain of corporations
beginning with the Company if each of the corporations other than the last corporation in the unbroken chain owns stock representing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other
corporations in such chain. 
 “Termination” or “Terminated”
means, for purposes of this Plan with respect to a Participant, that the Participant has for any reason ceased to provide services as an employee, officer, director or consultant to the Company or a Parent or Subsidiary of the Company. A Participant
will not be deemed to have ceased to provide services in the case of (i) sick leave, (ii) military leave, or (iii) any other leave of absence approved by the Committee, provided that such leave is for a period of not more than ninety
(90) days (a) unless reinstatement (or, in the case of an employee with an ISO, reemployment) upon the expiration of such leave is guaranteed by contract or statute, or (b) unless provided otherwise pursuant to formal policy adopted
from time to time by the Company’s Board and issued and promulgated in writing. In the case of any Participant on (i) sick leave, (ii) military leave or (iii) an approved leave of absence, the Committee may make such provisions
respecting suspension of vesting of the Award while on leave from the Company or a Parent or Subsidiary of the Company as it may deem appropriate, except that in no event may an Option be exercised after the expiration of the term set forth in the
Stock Option Agreement. The Committee will have sole discretion to determine whether a Participant has ceased to provide services and the effective date on which the Participant ceased to provide services (the “Termination
Date”). 
 “Unvested Shares” means “Unvested
Shares” as defined in the Award Agreement. 
 “Vested Shares” means
“Vested Shares” as defined in the Award Agreement. 
  

 15 

 FORCE10 NETWORKS, INC. 2007
EQUITY INCENTIVE PLAN 
 NOTICE OF
STOCK OPTION GRANT 
 You have been granted the following option to purchase
shares of the Common Stock of Force10 Networks, Inc. (the “Company”): 
  

					
	Option Number:	  	<option number>
		
	Name of Participant:	  	«Name»
		
	Total Number of Shares:	  	«TotalShares»
			
	Type of Option:	  	«ISO»	  	Incentive Stock Option (ISO)
			
		  	«NSO»	  	Nonstatutory Stock Option (NSO)
		
	Exercise Price Per Share:	  	$«PricePerShare»
		
	Date of Grant:	  	«DateGrant»
		
	Vesting Schedule:	  	 This Option shall vest with respect to the first 25% of the Shares subject to this Option when the Participant completes 12 months of continuous
Service after the Vesting Commencement Date. [This Option may be exercised with respect to
[1/48th][1/24
th][1/32nd
][1/40th]
 of the Shares subject to this Option when the Participant completes each month of continuous Service thereafter.]

		
		  	 This Option shall not be exercisable until the occurrence of an Exercise Event (as defined in the Stock Option Agreement). Upon the occurrence of
an Exercise Event, this Option shall be exercisable for any shares for which this Option shall have vested at that time pursuant to the vesting schedule above. After the occurrence of an Exercise Event, this Option shall become exercisable for
shares subject hereto as this Option vests pursuant to the vesting schedule above.

		
	Vesting Commencement Date:	  	«VestComDate»
		
	Expiration Date:	  	 «ExpDate». The day immediately prior to the Expiration Date is the last date that this Option can be exercised, unless this Option
expires earlier, as provided in Section 6 of the Stock Option Agreement.

 By your signature and the
signature of the Company’s representative below, you and the Company agree that this Option is granted under and governed by the terms and conditions of the 2007 Equity Incentive Plan (the “Plan”) and the Stock Option
Agreement, both of which are attached to and made a part of this document. 
 IN WITNESS WHEREOF, the Company has caused
this Notice of Stock Option Grant and Stock Option Agreement to be executed in duplicate by its duly authorized representative and Participant has executed this Notice of Stock Option Grant and Stock Option Agreement in duplicate, effective as of
the Date of Grant. 
  

									
	FORCE10 NETWORKS, INC.	 		 	PARTICIPANT
				
	By:	 	  
	 		 	  

		 		 		 	(Signature)
			
	 Leah Maher
	 		 	  

	(Please print name)	 		 	(Please print name)
				
	 Vice President and General Counsel
	 		 	Address:	 	  

	(Please print title)	 		 	  

		 		 		 	  

		 		 		 	  

		 		 		 	  

 FORCE10 NETWORKS, INC. 2007
EQUITY INCENTIVE PLAN 
 NOTICE OF
STOCK OPTION GRANT (RULE 506 EXEMPTION) 
 You
have been granted the following option to purchase shares of the Common Stock of Force10 Networks, Inc. (the “Company”): 
  

					
	Option Number:	  	<option number>
		
	Name of Participant:	  	«Name»
		
	Total Number of Shares:	  	«TotalShares»
			
	Type of Option:	  	«ISO»	  	Incentive Stock Option (ISO)
			
		  	«NSO»	  	Nonstatutory Stock Option (NSO)
		
	Exercise Price Per Share:	  	$«PricePerShare»
		
	Date of Grant:	  	«DateGrant»
		
	Vesting Schedule:	  	 This Option shall vest with respect to the first 25% of the Shares subject to this Option when the Participant completes 12 months of continuous
Service after the Vesting Commencement Date. This Option shall vest with respect to
[1/16th][1/24
th][1/32nd
][1/40th]
 of the Shares subject to this Option when the Participant completes each month of continuous Service thereafter.

		
		  	 This Option may be exercised in whole or in part for vested or unvested Shares at any time prior to its expiration. Unvested Shares shall be
subject to the Company’s Repurchase Option as described in Section 8 of the Stock Option Agreement.

		
	Vesting Commencement Date:	  	«VestComDate»
		
	Expiration Date:	  	 «ExpDate». The day immediately prior to the Expiration Date is the last date that this Option can be exercised, unless this Option
expires earlier, as provided in Section 6 of the Stock Option Agreement.

 By your signature and the
signature of the Company’s representative below, you and the Company agree that this Option is granted under and governed by the terms and conditions of the 2007 Equity Incentive Plan (the “Plan”) and the Stock Option
Agreement, both of which are attached to and made a part of this document. 
 IN WITNESS WHEREOF, the Company has caused
this Notice of Stock Option Grant and Stock Option Agreement to be executed in duplicate by its duly authorized representative and Participant has executed this Notice of Stock Option Grant and Stock Option Agreement in duplicate, effective as of
the Date of Grant. 
  

									
	FORCE10 NETWORKS, INC.	 		 	PARTICIPANT
				
	By:	 	  
	 		 	  

		 		 		 	(Signature)
			
	 Leah Maher
	 		 	  

	(Please print name)	 		 	(Please print name)
				
	 Vice President and General Counsel
	 		 	Address:	 	  

	(Please print title)	 		 	  

		 		 		 	  

		 		 		 	  

		 		 		 	  

 FORCE10 NETWORKS, INC. 2007
EQUITY INCENTIVE PLAN 
 NOTICE OF
STOCK OPTION GRANT 
 FOR NON-U.S.
PARTICIPANTS 
 You have been granted the following option to purchase shares of the Common Stock of Force10
Networks, Inc. (the “Company”): 
  

			
	Option Number:	  	<option number>
		
	Name of Participant:	  	«Name»
		
	Total Number of Shares:	  	«TotalShares»
		
	Exercise Price Per Share:	  	$«PricePerShare»
		
	Date of Grant:	  	«DateGrant»
		
	Vesting Schedule:	  	 This Option shall vest with respect to the first 25% of the Shares subject to this Option when the Participant completes 12 months of continuous Service after
the Vesting Commencement Date. [This Option may be exercised with respect to
[1/48th] of the Shares subject to this Option when the
Participant completes each month of continuous Service thereafter.]

		
		  	 This Option shall not be exercisable until the occurrence of an Exercise Event (as defined in the Stock Option Agreement). Upon the occurrence of an Exercise
Event, this Option shall be exercisable for any shares for which this Option shall have vested at that time pursuant to the vesting schedule above. After the occurrence of an Exercise Event, this Option shall become exercisable for shares subject
hereto as this Option vests pursuant to the vesting schedule above.

		
	Vesting Commencement Date:	  	«VestComDate»
		
	Expiration Date:	  	 «ExpDate».  The day immediately prior to the Expiration Date is the last date that this Option can be exercised, unless this Option
expires earlier, as provided in Section 6 of the Stock Option Agreement.

 By your signature and the
signature of the Company’s representative below, you and the Company agree that this Option is granted under and governed by the terms and conditions of the 2007 Equity Incentive Plan (the “Plan”) and the Stock Option
Agreement for Non-U.S. Participants, which includes country-specific provisions in Appendix A thereto (collectively, the “Agreement”), both of which are attached to and made a part of this document. 

IN WITNESS WHEREOF, the Company has caused this Notice of Stock Option Grant and Stock Option Agreement to be executed in
duplicate by its duly authorized representative and Participant has executed this Notice of Stock Option Grant and Stock Option Agreement in duplicate, effective as of the Date of Grant. 

 

									
	FORCE10 NETWORKS, INC.	 		 	PARTICIPANT
				
	By:	 	  
	 		 	  

		 		 		 	(Signature)
			
	 Leah Maher
	 		 	  

	(Please print name)	 		 	(Please print name)
				
	 Vice President and General Counsel
	 		 	Address:	 	  

	(Please print title)	 		 	  

		 		 		 	  

		 		 		 	  

		 		 		 	  

 THE OPTION GRANTED PURSUANT TO THIS AGREEMENT AND THE SHARES ISSUABLE UPON THE EXERCISE THEREOF HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT
SUCH REGISTRATION IS NOT REQUIRED. 
 FORCE10 NETWORKS, INC. 2007
EQUITY INCENTIVE PLAN: 
 STOCK OPTION
AGREEMENT 
 SECTION 1.  GRANT OF OPTION. 

 (a)        Option.    On the terms and
conditions set forth in the Notice of Stock Option Grant and this Agreement, the Company grants to the Participant on the Date of Grant the option to purchase at the Exercise Price the number of Shares set forth in the Notice of Stock Option Grant
(the “Option”). The Exercise Price is agreed to be at least 100% of the Fair Market Value per Share on the Date of Grant (110% of Fair Market Value if Participant is a Ten Percent Stockholder and the Option is intended to be
an ISO). This Option is intended to be an ISO or an NSO, as provided in the Notice of Stock Option Grant. 

 (b)        $100,000 Limitation.    If
designated as an ISO above, the Option is intended to qualify as an “incentive stock option” (the “ISO”) within the meaning of Section 422 of the Code. Even if this Option is designated as an ISO in the Notice
of Stock Option Grant, it shall be deemed to be an NSO to the extent (and only to the extent) required by the $100,000 annual limitation under Section 422(d) of the Code. 

 (c)        Stock Plan and Defined Terms.   This
Option is granted pursuant to the Plan, a copy of which the Participant acknowledges having received. The provisions of the Plan are incorporated into this Agreement by this reference. Capitalized terms not otherwise defined herein are defined in
the Plan. 
 SECTION 2.  RIGHT TO EXERCISE. 

 Subject to the conditions set forth in this Agreement, all or part of the Option may be exercised prior to its
expiration at the time or times set forth in the Notice of Stock Option Grant and this Agreement. If application of the vesting schedule in the Notice of Grant causes a fractional share, the number of vested shares shall be rounded down to the
nearest whole share, and the remaining fractional share shall be carried over to the next succeeding vesting installment. In such succeeding vesting installment the number of shares that vest shall be the sum of (a) the number of shares that
vest during that vesting installment and (b) any fractional shares carried over from preceding vesting installments, rounded down to the nearest whole share. 

 SECTION 3.  NO TRANSFER OR ASSIGNMENT OF OPTION. 

 Except as otherwise provided in this Agreement, the Option and the rights and privileges conferred hereby shall not
be sold, pledged or otherwise transferred (whether by operation of law or otherwise) in any manner other than by will or the laws of descent and distribution, and shall not be subject to sale under execution, attachment, levy or similar process. The
terms of the Option shall be binding upon all executors, administrators, successors and assigns of Participant. 
 SECTION
4.  EXERCISE PROCEDURES. 
  (a)        Notice of
Exercise.   To exercise this Option, Participant (or in the case of exercise after Participant’s death or incapacity, Participant’s executor, administrator, heir or legatee, as the case may be) must deliver to the
Company an executed Notice of Stock Option Exercise in the form attached hereto as Exhibit A, or in such other form as may be approved by the Committee from time to time (the “Notice of Exercise”), which shall set
forth, inter alia, (i) Participant’s election to exercise the Option, (ii) the number of Shares being purchased, (iii) any restrictions imposed on the Shares and (iv) any representations, warranties and
agreements regarding Participant’s investment intent and access to information as may be required by the Company to comply with applicable securities laws. If someone other than Participant exercises the Option, then such person must submit
documentation reasonably acceptable to the Company verifying that such person has the legal right to exercise the Option and such person shall be subject to all of the restrictions contained herein as if such person were the Participant. The
Participant or the Participant’s representative shall deliver to the Company, at the time of giving the notice, payment in a form permissible under Section 5 for the full amount of the Purchase Price. 

 (b)        Limitations on Exercise.   This Option
may not be exercised unless such exercise is in compliance with all applicable federal and state securities laws, as they are in effect at the date of exercise. This Option may not be exercised as to fewer than one hundred (100) shares unless
it is exercised as to all the Shares as to which the Option is then exercisable. 

 (c)        Issuance of Shares.   Provided that the
Notice of Exercise and payment are in form and substance satisfactory to counsel for the Company, the Company shall issue the Shares registered in the name of Participant, Participant’s authorized assignee, or Participant’s legal
representative, and shall deliver certificates representing the Shares with the appropriate legends affixed thereto. 

 (d)        Withholding Taxes.   Prior to the
issuance of the Shares upon exercise of this Option, Participant must pay or provide for any applicable tax withholding obligations of the Company. If the Committee permits, Participant may provide for payment of withholding taxes upon exercise of
the Option by requesting that the Company retain the minimum number of Shares with a Fair Market Value equal to the minimum amount of taxes required to be withheld; but in no event will the Company withhold Shares if such withholding would result in
adverse accounting consequences to the Company. In such case, the Company shall issue the net number of Shares to the Participant by deducting the Shares retained from the Shares issuable upon exercise. 

 

 2 

 SECTION 5.  PAYMENT FOR STOCK. 

 The Notice of Exercise shall be accompanied by full payment (denominated in United States Dollars) of the Exercise
Price for the shares being purchased in cash (by check), or where permitted by law: 

 (a)        by surrendering Shares that are already owned by the
Participant that (i) have been paid for within the meaning of Securities and Exchange Commission Rule 144; and (ii) are clear of all liens, claims, encumbrances or security interests. Such Shares shall be surrendered to the Company in good
form for transfer and shall be valued at their Fair Market Value on the date this Option is exercised. The Participant shall not surrender Shares in payment of the Purchase Price if such action would cause the Company to recognize compensation
expense (or additional compensation expense) with respect to this Option for financial reporting purposes. 

 (b)        by waiver of compensation due or accrued to Participant for
services rendered; 
  (c)        provided that a public market
for the Company’s stock exists: (i) through a “same day sale” commitment from Participant and a broker-dealer that is a member of the Financial Industry Regulatory Authority (a “FINRA Dealer”) whereby
Participant irrevocably elects to exercise the Option and to sell a portion of the Shares so purchased sufficient to pay for the total Exercise Price and whereby the FINRA Dealer irrevocably commits upon receipt of such Shares to forward the total
Exercise Price directly to the Company, or (ii) through a “margin” commitment from Participant and a FINRA Dealer whereby Participant irrevocably elects to exercise the Option and to pledge the Shares so purchased to the FINRA Dealer
in a margin account as security for a loan from the FINRA Dealer in the amount of the total Exercise Price, and whereby the FINRA Dealer irrevocably commits upon receipt of such Shares to forward the total Exercise Price directly to the Company; or

  (d)        any other form of consideration approved by the
Committee; or 
  (e)        by any combination of the foregoing.
 
 SECTION 6.  EXPIRATION AND EXERCISABILITY. 

 (a)        Basic Term.  This Option shall in any event
expire on the Expiration Date set forth in the Notice of Stock Option Grant, unless the Option expires earlier as provided in Section 6(b) or Section 6(c) below, or as provided in Sections 17 and 18 of the Plan. 

 (b)        If Participant’s Service Is Terminated Prior to an
Exercise Event. Notwithstanding anything else provided for herein, if Participant’s Service is terminated for any reason other than Cause (as defined in the Plan) prior to an Exercise Event (as defined in Section 13) then (i) the
Option will become exercisable upon the Exercise Event, but only to the extent that the Option is vested prior to Participant’s Termination Date (as defined in the Plan), (ii) the Option will remain exercisable during the Exercisability
Period (as defined in Section 13) and (iii) the Option will expire at the end of the Exercisability Period. If the Participant’s Service is terminated for Cause, the Option will expire on the Participant’s Termination Date.

  

 3 

 In the event that the Participant dies after termination of Service but before the
expiration of this Option, all or part of this Option may be exercised prior to its expiration by the executors or administrators of the Participant’s estate or by any person who has acquired this Option directly from the Participant by
beneficiary designation, bequest or inheritance, but only to the extent that the Option is then exercisable. 

 (c)        If Participant’s Service is Terminated Following an
Exercise Event.    If Participant’s Service is terminated at or after an Exercise Event, the following provisions shall apply: 

 (i)        Termination of Service Other than for Cause, Death or
Disability.    If the Participant’s Service terminates for any reason other than Cause, death or Disability, then this Option shall expire on the earliest of the following occasions: 

 (1) The Expiration Date determined pursuant to Subsection (a) above; or 

 (2) The date three months after the termination of the Participant’s Service for any reason other than Cause,
death or Disability, except that in the event of the Participant’s death or Disability within three months of a Termination for any reason other than for Cause, the date twelve months after the Termination Date. 

 (ii)        Termination of Service for Death or
Disability.    If the Participant dies while in Service or the Participant’s Service is terminated by reason of Disability, then this Option shall expire on the earlier of the following dates: 

 (1) The Expiration Date determined pursuant to Subsection (a) above; or 

 (2) The date 12 months after the Participant’s death or Disability. 

 (iii)        Termination of Service for
Cause.    If the Participant’s Service is terminated for Cause, then the Option shall expire on the Participant’s Termination Date. 

After an Exercise Event, the Participant may exercise all or part of this Option prior to its expiration, but only to the extent that the Option is
vested at such time. Upon the Participant’s Termination Date, the Option shall expire immediately with respect to the number of Shares that are unvested as of the Termination Date. In the event that the Participant dies before the expiration of
this Option, all or part of this Option may be exercised (prior to expiration) by the executors or administrators of the Participant’s estate or by any person who has acquired this Option directly from the Participant by beneficiary
designation, bequest or inheritance, but only to the extent that the Option is vested, and within the applicable time period set forth in clause (i) or clause (ii). 

 (d)        Part-Time Employment and Leaves of
Absence.    If the Participant commences working on a part-time basis, then the Company may adjust the vesting schedule set forth in the Notice of Stock Option Grant in accordance with the Company’s part-time work policy
or the terms of an agreement between the Participant and the Company pertaining to his or her part-time schedule. If the Participant goes on a leave of absence, then the Company may 

 

 4 

 
adjust the vesting schedule set forth in the Notice of Stock Option Grant in accordance with the Company’s leave of absence policy or the terms of such leave. Except as provided in the
preceding sentence, Service shall be deemed to continue for any purpose under this Agreement while the Participant is on a bona fide leave of absence, if (i) such leave was approved by the Company in writing and (ii) continued
crediting of Service for such purpose is expressly required by the terms of such leave or by applicable law (as determined by the Company). Service shall be deemed to terminate when such leave ends, unless the Participant immediately returns to
active work. 
  (e)        Notice Concerning ISO
Treatment.    Even if this Option is designated as an ISO in the Notice of Stock Option Grant, it ceases to qualify for favorable tax treatment as an ISO to the extent that it is exercised: 

 (i)        More than three months after the date the Participant ceases to
be an Employee for any reason other than death or permanent and total disability (as defined in Section 22(e)(3) of the Code); 

 (ii)        More than 12 months after the date the Participant ceases to
be an Employee by reason of permanent and total disability (as defined in Section 22(e)(3) of the Code); or 

 (iii)        More than three months after the date the Participant has
been on a leave of absence for 90 days, unless the Participant’s reemployment rights following such leave were guaranteed by statute or by contract. 

 (f)        Notice of Disqualifying Disposition of ISO
Shares.    If the Option is an ISO, and if Participant sells or otherwise disposes of any of the Shares acquired pursuant to the ISO on or before the later of (i) the date two (2) years after the Date of Grant, and
(ii) the date one (1) year after transfer of such Shares to Participant upon exercise of the Option, Participant shall immediately notify the Company in writing of such disposition. Participant agrees that Participant may be subject to
income tax withholding by the Company on the compensation income recognized by Participant from the early disposition by payment in cash or out of the current wages or other compensation payable to Participant. If the Option is an ISO, and if
Participant sells or otherwise disposes of any of the Shares acquired pursuant to the ISO on or before the later of (i) the date two (2) years after the Date of Grant, and (ii) the date one (1) year after transfer of such Shares
to Participant upon exercise of the Option, Participant shall immediately notify the Company in writing of such disposition. Participant agrees that Participant may be subject to income tax withholding by the Company on the compensation income
recognized by Participant from the early disposition by payment in cash or out of the current wages or other compensation payable to Participant. 

SECTION 7.  RIGHT OF FIRST REFUSAL. 

 In the event that the Participant proposes to sell, pledge or otherwise transfer (including without limitation a
transfer by gift or operations of law) to a third party any Shares acquired under this Agreement, or any interest in such Shares, the Company and/or its assignee(s) shall have an assignable right of first refusal to purchase the Shares to be sold or

  

 5 

 
transferred on the terms and conditions (if any) set forth in the Company’s Certificate of Incorporation or bylaws (the “Right of First Refusal”). The Company’s
Right of First Refusal will terminate when the Company’s securities become publicly traded. 
 SECTION 8.  LEGALITY OF INITIAL
ISSUANCE. 
  The Notice of Stock Option Agreement and this Agreement are intended to qualify for
exemption from California’s securities qualification requirements under Section 25102(o) of the California Corporations Code and any regulations relating thereto, unless the Board or Committee has expressly determined otherwise with
respect to the Notice of Stock Option Grant and this Agreement. Any provision of the Notice of Stock Option Grant or this Agreement which is inconsistent with Section 25102(o) or any regulations relating thereto shall, without further act or
amendment by the Company or the Board, be reformed to comply with the requirements of Section 25102(o) and any regulations relating thereto. The exercise of the Option and the issuance and transfer of Shares shall be subject to compliance by
the Company and Participant with all applicable requirements of federal and state securities laws and with all applicable requirements of any stock exchange on which the Company’s Common Stock may be listed at the time of such issuance or
transfer. Participant understands that the Company is under no obligation to register or qualify the Shares with the SEC, any state securities commission or any stock exchange to effect such compliance. No Shares shall be issued upon the exercise of
this Option unless and until the Company has determined that: 

 (a)        It and the Participant have taken any actions required to
register the Shares under the Securities Act or to perfect an exemption from the registration requirements thereof; 

 (b)        Any applicable listing requirement of any stock exchange or
other securities market on which Stock is listed has been satisfied; and 

 (c)        Any other applicable provision of federal, state or foreign law
has been satisfied. 
 SECTION 9.  NO REGISTRATION RIGHTS. 

 The Company may, but shall not be obligated to, register or qualify the sale of Shares under the Securities Act or
any other applicable law. The Company shall not be obligated to take any affirmative action in order to cause the sale of Shares under this Agreement to comply with any law. 

SECTION 10.  RESTRICTIONS ON TRANSFER. 

 (a)        Securities Law
Restrictions.    Regardless of whether the offering and sale of Shares under the Plan have been registered under the Securities Act or have been registered or qualified under the securities laws of any state, the Company at
its discretion may impose restrictions upon the sale, pledge or other transfer of such Shares (including the placement of appropriate legends on stock certificates or the imposition of stop-transfer instructions) if, in the judgment of the Company,
such restrictions are necessary or desirable in order to achieve compliance with the Securities Act, the securities laws of any state or any other law. 
  

 6 

  (b)        Market
Stand-Off.    In connection with the first registered offering of the Company’s Common Stock (the “Initial Public Offering”) for the account of the Company to the public pursuant to a registration
statement declared effective by the Securities and Exchange Commission (the “Commission”) or any other administering federal agency at the time pursuant to the Securities Act, or any similar federal rule or statute and the
rules and regulations of the Commission thereunder, all as the same be in effect at the time, the Participant or a Transferee shall not directly or indirectly sell, make any short sale of, loan, hypothecate, pledge, offer, grant or sell any option
or other contract for the purchase of, purchase any option or other contract for the sale of, or otherwise dispose of or transfer, or agree to engage in any of the foregoing transactions with respect to, any Shares acquired under this Agreement
without the prior written consent of the Company or its underwriters, as the case may be, for such period of time not to exceed 180 days from the effective date of such registration as may be requested by the Company or such underwriters; provided,
however, that if during the last 17 days of the restricted period the Company issues an earnings release or material news or a material event relating to the Company occurs, or prior to the expiration of the restricted period the Company announces
that it will release earnings results during the 16-day period beginning on the last day of the restricted period, and if the Company’s securities are listed on the Nasdaq Stock Market and Rule 2711 thereof applies, then the restrictions
imposed herein shall continue to apply until the expiration of the 18-day period beginning on the issuance of the earnings release or the occurrence of the material news or material event. In no event will the restricted period extend beyond 215
days after the effective date of the registration statement. The Company may impose stop-transfer instructions with respect to the Shares acquired under this Agreement until the end of such period. The Company’s underwriters shall be
beneficiaries of the agreement set forth in this Subsection (b). Participant further agrees to enter into any agreement reasonably required by the underwriters to implement the foregoing. 

 (c)        Investment Intent at Grant.    The
Participant represents and agrees that the Shares to be acquired upon exercising this Option will be acquired for investment, and not with a view to the sale or distribution thereof. 

 (d)        Investment Intent at Exercise.    In
the event that the sale of Shares under the Plan is not registered under the Securities Act but an exemption is available which requires an investment representation or other representation, the Participant shall represent and agree at the time of
exercise that the Shares being acquired upon exercising this Option are being acquired for investment, and not with a view to the sale or distribution thereof, and shall make such other representations as are deemed necessary or appropriate by the
Company and its counsel. 

 (e)        Legends.    All certificates
evidencing Shares purchased under this Agreement shall bear the following legend: 
 “THE SHARES REPRESENTED HEREBY MAY NOT
BE SOLD, ASSIGNED, TRANSFERRED, ENCUMBERED OR IN ANY MANNER DISPOSED OF, EXCEPT IN COMPLIANCE WITH THE TERMS OF A WRITTEN AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED HOLDER OF THE SHARES (OR THE PREDECESSOR IN INTEREST TO THE SHARES). SUCH
AGREEMENT GRANTS TO THE COMPANY 
  

 7 

 
CERTAIN RIGHTS OF FIRST REFUSAL UPON AN ATTEMPTED TRANSFER OF THE SHARES. THE SECRETARY OF THE COMPANY WILL UPON WRITTEN REQUEST FURNISH A COPY OF SUCH AGREEMENT TO THE HOLDER HEREOF WITHOUT
CHARGE.” 
 All certificates evidencing Shares purchased under this Agreement in an unregistered transaction shall bear the following
legend (and such other restrictive legends as are required or deemed advisable under the provisions of any applicable law): 

“THE SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED,
OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.” 

 (f)        Removal of Legends.    If, in the
opinion of the Company and its counsel, any legend placed on a stock certificate representing Shares sold under this Agreement is no longer required, the holder of such certificate shall be entitled to exchange such certificate for a certificate
representing the same number of Shares but without such legend. 

 (g)        Administration.    Any determination
by the Company and its counsel in connection with any of the matters set forth in this Section 10 shall be conclusive and binding on the Participant and all other persons. 

SECTION 11.  TAX CONSEQUENCES. 

 (a)        Tax Consequences.    Set forth below
is a brief summary as of the Effective Date of the Plan of some of the U.S. federal tax consequences of exercise of the Option and disposition of the Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO
CHANGE. Participant is advised to consult Participant’s personal tax adviser before exercising this Option or disposing of Shares. 

 (b)        Exercise of ISO.    If the Option
qualifies as an ISO, there will be no regular federal income tax liability upon the exercise of the Option, although the excess, if any, of the Fair Market Value of the Shares on the date of exercise over the Exercise Price will be treated as a tax
preference item for federal alternative minimum tax purposes and may subject the Participant to the alternative minimum tax in the year of exercise. 

 (c)        Exercise of Nonqualified Stock
Option.    If the Option does not qualify as an ISO, there may be a regular federal income tax liability upon the exercise of the Option. Participant will be treated as having received compensation income (taxable at ordinary
income tax rates) equal to the excess, if any, of the Fair Market Value of the Shares on the date of exercise over the Exercise Price. If Participant is a current or former employee of the Company, the Company may be required to withhold from
Participant’s compensation or collect from Participant and pay to the applicable taxing authorities an amount equal to a percentage of this compensation income at the time of exercise. 

 

 8 

  (d)        Disposition of
Shares.    The following tax consequences may apply upon disposition of the Shares. 

 (i)        Incentive Stock Options.    If the
Shares are held for more than twelve (12) months after the date of purchase of the Shares pursuant to the exercise of an ISO and are disposed of more than two (2) years after the Date of Grant, any gain realized on disposition of the
Shares will be treated as long term capital gain for federal income tax purposes. If Vested Shares purchased under an ISO are disposed of within the applicable one (1) year or two (2) year period, any gain realized on such disposition will
be treated as compensation income (taxable at ordinary income rates in the year of the disposition) to the extent of the excess, if any, of the Fair Market Value of the Shares on the date of exercise over the Exercise Price. 

 (ii)        Nonqualified Stock Options.    If
the Shares are held for more than twelve (12) months after the date of the transfer of the Shares pursuant to the exercise of an NQSO, any gain realized on disposition of the Shares will be treated as long term capital gain. 

 (iii)        Withholding.    The Company may be
required to withhold from the Participant’s compensation or collect from the Participant and pay to the applicable taxing authorities an amount equal to a percentage of this compensation income. 

 (e)        Possible Effect of Section 409A of the
Code.    Section 409A of the Code applies to arrangements that provide for the deferral of compensation. Generally, a stock option granted with an exercise price per share of not less than the “fair market
value” (determined in a manner consistent with Section 409A of the Code and the regulations and other guidance promulgated thereunder) per share on the date of grant of the stock option and with no other feature providing for the deferral
of compensation will not be subject to Section 409A of the Code. However, if the exercise price of the stock option is less than such “fair market value” or the stock option has another feature for the deferral of compensation, then
if the stock option is not administered within the parameters established under Section 409A the optionholder will be subject to additional taxes. Also, the amount deemed to be deferred compensation under Section 409A of the Code will be
subject to ordinary income and employment taxes (in this respect the IRS has not yet indicated how it will calculate the amount of deferred compensation subject to tax and the timing and frequency of taxation, but it seems likely that the income
will be measured and taxes imposed at least on the vesting dates of the stock option). If Section 409A of the Code does apply to this Option, then special rules apply to the timing of making and effecting certain amendments of this Option with
respect to distribution of any deferred compensation. 
 SECTION 12.  MISCELLANEOUS PROVISIONS. 

 (a)        Rights as a Stockholder.    Neither
the Participant nor the Participant’s representative shall have any rights as a stockholder with respect to any Shares subject to this Option until the Participant or the Participant’s representative becomes entitled to receive such Shares
by filing a Notice of Exercise and paying the Purchase Price pursuant to Sections 4 and 5. 

 (b)        No Retention Rights.    Nothing in
this Option or in the Plan shall confer upon the Participant any right to continue in Service for any period of specific duration or 

 

 9 

 
interfere with or otherwise restrict in any way the rights of the Company (or any Parent or Subsidiary employing or retaining the Participant) or of the Participant, which rights are hereby
expressly reserved by each, to terminate his or her Service at any time and for any reason, with or without Cause. 

 (c)        Notice.    Any notice required by
the terms of this Agreement shall be given in writing. It shall be deemed effective upon (i) personal delivery, (ii) deposit with the United States Postal Service, by registered or certified mail, with postage and fees prepaid or
(iii) deposit with Federal Express Corporation, with shipping charges prepaid. Notice shall be addressed to the Company at its principal executive office and to the Participant at the address that he or she most recently provided to the Company
in accordance with this Subsection (c). Notwithstanding the above, the Company may, in its sole discretion, decide to deliver any documents related to the Option granted under the Plan or future Options that may be granted under the Plan by
electronic means or to request Participant’s consent to participate in the Plan by electronic means. Such electronic means include posting the documents on a web site maintained by the Company or by a third party under contract with the
Company. If the Company posts these documents on a web site, it will notify Participant by email. Participant hereby consents to receive such documents by electronic delivery and, if requested, to agree to participate in the Plan through an on-line
or electronic system established and maintained by the Company or another third-party designated by the Company. 

 (d)        Entire Agreement.    The Notice of
Stock Option Grant, this Agreement and the Plan constitute the entire contract between the parties hereto with regard to the subject matter hereof. They supersede any other agreements, representations or understandings (whether oral or written and
whether express or implied) which relate to the subject matter hereof. 

 (e)        Successors and Assigns.    The
Company may assign any of its rights under this Agreement including its rights to purchase Shares under the Right of First Refusal. No other party to this Agreement may assign, whether voluntarily or by operation of law, any of its rights and
obligations under this Agreement, except with the prior written consent of the Company. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth
herein, this Agreement shall be binding upon Participant and Participant’s heirs, executors, administrators, legal representatives, successors and assigns. 

 (f)        Choice of Law.    This Agreement
shall be governed by, and construed in accordance with, the laws of the State of California, as such laws are applied to contracts entered into and performed in such State. 

 (g)        Acceptance.    Participant hereby
acknowledges receipt of a copy of the Plan, the Notice of Stock Option Grant and this Agreement. Participant has read and understands the terms and provisions thereof, and accepts the Option subject to all the terms and conditions of the Plan, the
Notice of Stock Option Grant and this Agreement. Participant acknowledges that there may be adverse tax consequences upon exercise of the Option or disposition of the Shares and that Participant should consult a tax adviser prior to such exercise or
disposition. 
  

 10 

  (h)        Further
Assurances.    The parties agree to execute such further documents and instruments and to take such further actions as may be reasonably necessary to carry out the purposes and intent of this Agreement. 

 (i)        Titles and Headings.    The titles,
captions and headings of this Agreement are included for ease of reference only and will be disregarded in interpreting or construing this Agreement. Unless otherwise specifically stated, all references herein to “sections” and
“exhibits” will mean “sections” and “exhibits” to this Agreement. 

 (j)        Counterparts.    This Agreement may
be executed in any number of counterparts, each of which when so executed and delivered will be deemed an original, and all of which together shall constitute one and the same agreement. 

 (k)        Severability.    If any provision of
this Agreement is determined by any court or arbitrator of competent jurisdiction to be invalid, illegal or unenforceable in any respect, such provision will be enforced to the maximum extent possible given the intent of the parties hereto. If such
clause or provision cannot be so enforced, such provision shall be stricken from this Agreement and the remainder of this Agreement shall be enforced as if such invalid, illegal or unenforceable clause or provision had (to the extent not
enforceable) never been contained in this Agreement. Notwithstanding the forgoing, if the value of this Agreement based upon the substantial benefit of the bargain for any party is materially impaired, which determination as made by the presiding
court or arbitrator of competent jurisdiction shall be binding, then both parties agree to substitute such provision(s) through good faith negotiations. 

 (l)        Hold Harmless.    Participant hereby
acknowledges and agrees that the determination of “fair market value” for purposes of Section 409A and other sections of the Code for a privately-held corporation with illiquid shares is necessarily uncertain at the time of grant of
this Option and the determination of whether the exercise price per share of this Option is at a discount from such “fair market value” and the size of any such discount has been made in good faith by the Company and any person or persons
retained by the Company to determine or assist in determining such “fair market value” (whether compensated or not for such service). Therefore, Participant freely acknowledges and agrees to hold the Company and all such persons
(including, without limitation, Directors, Consultants, and Employees and any advisors or other parties related or retained by the foregoing or the Company) harmless from any liability Participant may have under Section 409A of the Code or any
other section of the Code due to the determination of such “fair market value” to the maximum extent permitted by applicable law. 

SECTION 13.  DEFINITIONS. 

 (a)        “Agreement” shall mean this Stock Option
Agreement. 
  (b)        “Board of Directors”
shall mean the Board of Directors of the Company, as constituted from time to time or, if a Committee has been appointed, such Committee. 

 (c)        “Cause” shall have the meaning set forth in
the Plan. 
  (d)        “Code” shall mean the
Internal Revenue Code of 1986, as amended. 
  

 11 

 (e)        “Committee” shall mean a committee of the Board
of Directors, as described in the Plan. 

 (f)        “Company” shall mean Force 10 Networks, Inc.,
a Delaware corporation. 

 (g)        “Consultant” shall mean a person who performs
bona fide services for the Company, a Parent or a Subsidiary as a consultant or advisor, excluding Employees and Outside Directors. 

 (h)        “Date of Grant” shall mean the date specified
in the Notice of Stock Option Grant, which date shall be the later of (i) the date on which the Board of Directors resolved to grant this Option or (ii) the first day of the Participant’s Service. 

 (i)        “Disability” shall have the meaning set forth
in the Plan. 
  (j)        “Employee” shall mean
any individual who is a common-law employee of the Company, a Parent or a Subsidiary. 

 (k)        “Exercisability Period” shall mean:

  (i)        in the event of an Exercise Event that is not a
Qualifying Change in Control: 
  1.        in the case of the
Participant’s Termination other than for death or Disability, a period of three (3) months following the Exercise Event; and 

 2.        in the case of the Participant’s Termination for death or
Disability, or in the case of the Participant’s death or Disability prior to the date that is three (3) months following the Exercise Event, a period of twelve (12) months after the Exercise Event. 

 (ii)        in the event of an Exercise Event constituting a Qualifying
Change in Control, immediately prior to such Qualifying Change in Control. 

 (l)        “Exercise Event” shall mean the earlier of
(i) the second anniversary of the Date of Grant, (ii) immediately prior to a Qualifying Change in Control, or (iii) an initial public offering of the Company’s common stock on a national securities exchange. 

 (m)        “Exercise Price” shall mean the amount for
which one Share may be purchased upon exercise of this Option, as specified in the Notice of Stock Option Grant. 

 (n)        “Fair Market Value” shall mean the fair market
value of a Share, as determined by the Board of Directors in good faith. Such determination shall be conclusive and binding on all persons. 

 (o)        “ISO” shall mean an employee incentive stock
option described in Section 422(b) of the Code. 
  

 12 

  (p)        “Notice of
Stock Option Grant” shall mean the document so entitled to which this Agreement is attached. 

 (q)        “NSO” shall mean a stock option not described
in Sections 422(b) or 423(b) of the Code. 

 (r)        “Outside Director” shall mean a member of the
Board of Directors who is not an Employee. 

 (s)        “Parent” shall mean any corporation (other
than the Company) in an unbroken chain of corporations ending with the Company, if each of the corporations other than the Company owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other
corporations in such chain. 

 (t)        “Participant” shall mean the person named in
the Notice of Stock Option Grant. 

 (u)        “Plan” shall mean the Force 10 Networks, Inc.
2007 Equity Incentive Plan. 
  (v)        “Purchase
Price” shall mean the Exercise Price multiplied by the number of Shares with respect to which this Option is being exercised. 

 (w)        “Qualifying Change in Control” shall mean the
closing of a transaction constituting a change in control of the Company in connection with which outstanding awards are not assumed by the surviving or successor corporation, if any, and consequentially become fully exercisable pursuant to
Section 17.1 of the Plan. 
  (x)        “Right of
First Refusal” shall mean the Company’s right of first refusal described in Section 7. 

 (y)        “Securities Act” shall mean the Securities Act
of 1933, as amended. 
  (z)        “Service”
shall mean service as an Employee, Outside Director or Consultant. 

 (aa)      “Share” shall mean one share of Stock, as adjusted in
accordance with Section 2.2 of the Plan (if applicable). 

 (bb)      “Stock” shall mean the Common Stock of the Company, with
a par value of $0.0001 per Share. 

 (cc)      “Subsidiary” shall mean any corporation (other than the
Company) in an unbroken chain of corporations beginning with the Company, if each of the corporations other than the last corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock
in one of the other corporations in such chain. 

 (dd)      “Transferee” shall mean any person to whom the
Participant has directly or indirectly transferred any Share acquired under this Agreement. 
  

 13 

 THE OPTION GRANTED PURSUANT TO THIS AGREEMENT AND THE SHARES ISSUABLE UPON THE EXERCISE
THEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY AND
ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED. 
 FORCE10 NETWORKS,
INC. 2007 EQUITY INCENTIVE PLAN: 
 STOCK
OPTION AGREEMENT 
 FOR NON-U.S. PARTICIPANTS

 SECTION 1.  GRANT OF OPTION. 

 (a)        Option.    On the terms and
conditions set forth in the Notice of Stock Option Grant and this Agreement, the Company grants to the Participant on the Date of Grant the option to purchase at the Exercise Price the number of Shares set forth in the Notice of Stock Option Grant
(the “Option”). The Exercise Price is agreed to be at least 100% of the Fair Market Value per Share on the Date of Grant. This Option is intended to be an NSO. 

 (b)        Stock Plan and Defined
Terms.    This Option is granted pursuant to the Plan, a copy of which the Participant acknowledges having received. The provisions of the Plan are incorporated into this Agreement by this reference. Capitalized terms not
otherwise defined herein are defined in the Plan. 
 SECTION 2.  RIGHT TO EXERCISE. 

 Subject to the conditions set forth in this Agreement, all or part of the Option may be exercised prior to its
expiration at the time or times set forth in the Notice of Stock Option Grant and this Agreement. If application of the vesting schedule in the Notice of Grant causes a fractional share, the number of vested shares shall be rounded down to the
nearest whole share, and the remaining fractional share shall be carried over to the next succeeding vesting installment. In such succeeding vesting installment the number of shares that vest shall be the sum of (a) the number of shares that
vest during that vesting installment and (b) any fractional shares carried over from preceding vesting installments, rounded down to the nearest whole share. 

SECTION 3.  NO TRANSFER OR ASSIGNMENT OF OPTION. 

 Except as otherwise provided in this Agreement, the Option and the rights and privileges conferred hereby shall not
be sold, pledged or otherwise transferred (whether by operation of law or otherwise) in any manner other than by will or the laws of descent and distribution, and shall not be subject to sale under execution, attachment, levy or similar process. The
terms of the Option shall be binding upon all executors, administrators, successors and assigns of Participant. 
  

 SECTION 4.  EXERCISE PROCEDURES. 

 (a)        Notice of Exercise.    To exercise
this Option, Participant (or in the case of exercise after Participant’s death or incapacity, Participant’s executor, administrator, heir or legatee, as the case may be) must deliver to the Company an executed Notice of Stock Option
Exercise in the form attached hereto as Exhibit A, or in such other form as may be approved by the Committee from time to time (the “Notice of Exercise”), which shall set forth, inter alia,
(i) Participant’s election to exercise the Option, (ii) the number of Shares being purchased, (iii) any restrictions imposed on the Shares and (iv) any representations, warranties and agreements regarding Participant’s
investment intent and access to information as may be required by the Company to comply with applicable securities laws (including all applicable foreign laws). If someone other than Participant exercises the Option, then such person must submit
documentation reasonably acceptable to the Company verifying that such person has the legal right to exercise the Option and such person shall be subject to all of the restrictions contained herein as if such person were the Participant. The
Participant or the Participant’s representative shall deliver to the Company, at the time of giving the notice, payment in a form permissible under Section 5 for the full amount of the Purchase Price. 

 (b)        Limitations on Exercise.    This
Option may not be exercised unless such exercise is in compliance with all applicable federal, state and foreign securities laws, as they are in effect at the date of exercise. This Option may not be exercised as to fewer than one hundred
(100) shares unless it is exercised as to all the Shares as to which the Option is then exercisable. 

 (c)        Issuance of Shares.    Provided that
the Notice of Exercise and payment are in form and substance satisfactory to counsel for the Company, the Company shall issue the Shares registered in the name of Participant, Participant’s authorized assignee, or Participant’s legal
representative, and shall deliver certificates representing the Shares with the appropriate legends affixed thereto. 

 (d)        Withholding Taxes.    Prior to the
issuance of the Shares upon exercise of this Option, Participant must pay or provide for any applicable tax withholding obligations of the Company. If the Committee permits, Participant may provide for payment of withholding taxes upon exercise of
the Option by requesting that the Company retain the minimum number of Shares with a Fair Market Value equal to the minimum amount of taxes required to be withheld; but in no event will the Company withhold Shares if such withholding would result in
adverse accounting consequences to the Company. In such case, the Company shall issue the net number of Shares to the Participant by deducting the Shares retained from the Shares issuable upon exercise. 

 Regardless of any action the Company or Participant’s employer (the “Employer”) takes
with respect to any or all income tax, social insurance, payroll tax, payment on account or other tax-related items related to Participant’s participation in the Plan and legally applicable to Participant (“Tax-Related
Items”), Participant acknowledges that the ultimate liability for all Tax-Related Items is and remains Participant’s responsibility and may exceed the 

 

 2 

 
amount actually withheld by the Company and/or the Employer. Participant further acknowledges that the Company and/or the Employer (1) make no representations or undertakings regarding the
treatment of any Tax-Related Items in connection with any aspect of the Option grant, including the grant, vesting or exercise of the Option, the subsequent sale of Shares acquired pursuant to such exercise and the receipt of any dividends; and
(2) do not commit to and are under no obligation to structure the terms of the grant or any aspect of the Option to reduce or eliminate Participant’s liability for Tax-Related Items or achieve any particular tax result. Further, if
Participant has become subject to tax in more than one jurisdiction between the Date of Grant and the date of any relevant taxable or tax withholding event, as applicable, Participant acknowledges that Company and/or the Employer (or former
employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction. 

 Prior to any relevant taxable or tax withholding event, as applicable, Participant shall pay or make adequate
arrangements satisfactory to the Company and/or the Employer to satisfy all Tax-Related Items withholding obligations of the Company and/or the Employer. In this regard, Participant authorizes the Company and/or the Employer, or their respective
agents, at their discretion, to satisfy the obligations with regard to all applicable Tax-Related Items by one or a combination of the following: (1) withholding from Participant’s wages or other cash compensation paid to Participant by
the Company and/or the Employer; (2) withholding from proceeds of the sale of Shares acquired upon exercise of the Option either through a voluntary sale or through a mandatory sale arranged by the Company (on Participant’s behalf pursuant
to this authorization); or (3) withholding in Shares to be issued upon exercise of the Option. 
  To
avoid negative accounting treatment, the Company may withhold or account for Tax-Related Items by considering applicable minimum statutory withholding amounts or other applicable withholding rates. If the obligation for Tax-Related Items is
satisfied by withholding in Shares, for tax purposes, Participant is deemed to have been issued the full number of Shares subject to the exercised Options, notwithstanding that a number of the Shares are held back solely for the purpose of paying
the Tax-Related Items due as a result of any aspect of Participant’s participation in the Plan. 

 Finally, Participant shall pay to the Company or the Employer any amount of Tax-Related Items that the Company or
the Employer may be required to withhold as a result of Participant’s participation in the Plan or Participant’s purchase of Shares that cannot be satisfied by the means previously described. The Company may refuse to honor the exercise
and refuse to issue or deliver the Shares or the proceeds from the sale of Shares if Participant fails to comply with his or her obligations in connection with the Tax-Related Items. 

SECTION 5.  PAYMENT FOR STOCK. 

 The Notice of Exercise shall be accompanied by full payment (denominated in United States Dollars) of the Exercise
Price for the shares being purchased in cash (by check), or where permitted by law: 
  (a)
        provided that a public market for the Company’s stock exists: (i) through a “same day sale” commitment from Participant and a broker-dealer that is a member of the

  

 3 

 
Financial Industry Regulatory Authority (a “FINRA Dealer”) whereby Participant irrevocably elects to exercise the Option and to sell a portion of the Shares so purchased
sufficient to pay for the total Exercise Price and whereby the FINRA Dealer irrevocably commits upon receipt of such Shares to forward the total Exercise Price directly to the Company, or (ii) through a “margin” commitment from
Participant and a FINRA Dealer whereby Participant irrevocably elects to exercise the Option and to pledge the Shares so purchased to the FINRA Dealer in a margin account as security for a loan from the FINRA Dealer in the amount of the total
Exercise Price, and whereby the FINRA Dealer irrevocably commits upon receipt of such Shares to forward the total Exercise Price directly to the Company; or 

 (b)        any other form of consideration approved by the Committee; or

  (c)        by any combination of the foregoing. 

 SECTION 6.  EXPIRATION AND EXERCISABILITY. 

 (a)        Basic Term.    This Option shall in
any event expire on the Expiration Date set forth in the Notice of Stock Option Grant, unless the Option expires earlier as provided in Section 6(b) or Section 6(c) below, or as provided in Sections 17 and 18 of the Plan. 

 (b)        If Participant’s Service Is Terminated Prior to an
Exercise Event.    Notwithstanding anything else provided for herein, if Participant’s Service is terminated for any reason other than Cause (as defined in the Plan) prior to an Exercise Event (as defined in
Section 14) then (i) the Option will become exercisable upon the Exercise Event, but only to the extent that the Option is vested prior to Participant’s Termination Date (as defined in the Plan), (ii) the Option will remain
exercisable during the Exercisability Period (as defined in Section 14) and (iii) the Option will expire at the end of the Exercisability Period. If the Participant’s Service is terminated for Cause, the Option will expire on the
Participant’s Termination Date. 
 In the event that the Participant dies after termination of Service but
before the expiration of this Option, all or part of this Option may be exercised prior to its expiration by the executors or administrators of the Participant’s estate or by any person who has acquired this Option directly from the Participant
by beneficiary designation, bequest or inheritance, but only to the extent that the Option is then exercisable. 

 (c)        If Participant’s Service is Terminated Following an
Exercise Event.    If Participant’s Service is terminated at or after an Exercise Event, the following provisions shall apply: 

 (i)        Termination of Service Other than for Cause, Death or
Disability.    If the Participant’s Service terminates for any reason other than Cause, death or Disability, then this Option shall expire on the earliest of the following occasions: 

 (1) The Expiration Date determined pursuant to Subsection (a) above; or 

 (2) The date three months after the termination of the Participant’s Service for any reason other than Cause,
death or Disability, except that in the event of the Participant’s death or Disability within three months of a Termination for any reason other than for Cause, the date twelve months after the Termination Date. 

 

 4 

  (ii)        Termination of
Service for Death or Disability.    If the Participant dies while in Service or the Participant’s Service is terminated by reason of Disability, then this Option shall expire on the earlier of the following dates:

 (1) The Expiration Date determined pursuant to Subsection (a) above; or 

(2) The date 12 months after the Participant’s death or Disability. 

 (iii)        Termination of Service for
Cause.    If the Participant’s Service is terminated for Cause, then the Option shall expire on the Participant’s Termination Date. 

After an Exercise Event, the Participant may exercise all or part of this Option prior to its expiration, but only to the extent that the
Option is vested at such time. Upon the Participant’s Termination Date, the Option shall expire immediately with respect to the number of Shares that are unvested as of the Termination Date. In the event that the Participant dies before the
expiration of this Option, all or part of this Option may be exercised (prior to expiration) by the executors or administrators of the Participant’s estate or by any person who has acquired this Option directly from the Participant by
beneficiary designation, bequest or inheritance, but only to the extent that the Option is vested, and within the applicable time period set forth in clause (i) or clause (ii). 

 (d)        Part-Time Employment and Leaves of
Absence.    If the Participant commences working on a part-time basis, then the Company may adjust the vesting schedule set forth in the Notice of Stock Option Grant in accordance with the Company’s part-time work policy
or the terms of an agreement between the Participant and the Company pertaining to his or her part-time schedule. If the Participant goes on a leave of absence, then the Company may adjust the vesting schedule set forth in the Notice of Stock Option
Grant in accordance with the Company’s leave of absence policy or the terms of such leave. Except as provided in the preceding sentence, Service shall be deemed to continue for any purpose under this Agreement while the Participant is on a
bona fide leave of absence, if (i) such leave was approved by the Company in writing and (ii) continued crediting of Service for such purpose is expressly required by the terms of such leave or by applicable law (as determined by
the Company). Service shall be deemed to terminate when such leave ends, unless the Participant immediately returns to active work. 

 (e)        Active Employment.    In the Event
of Termination (whether or not in breach of local labor laws), Participant’s right to receive the Option and vest in the Option under the Plan, if any, will terminate effective as of the date that Participant is no longer actively employed and
will not be extended by any notice period mandated under local law (e.g. active employment would not include a period of “garden leave” or similar period pursuant to local law); furthermore, in the event of Termination (whether or
not in breach of local labor laws), Participant’s right to exercise the Option after Termination, if any, will be measured by the date of Termination of Participant’s active employment and will not be extended by any notice period mandated
under local law. The Committee shall have the exclusive discretion to determine when Participant is no longer actively employed for purposes of his or her Option Grant. 
  

 5 

 SECTION 7.  RIGHT OF FIRST REFUSAL. 

 In the event that the Participant proposes to sell, pledge or otherwise transfer (including without limitation a
transfer by gift or operations of law) to a third party any Shares acquired under this Agreement, or any interest in such Shares, the Company and/or its assignee(s) shall have an assignable right of first refusal to purchase the Shares to be sold or
transferred on the terms and conditions (if any) set forth in the Company’s Certificate of Incorporation or bylaws (the “Right of First Refusal”). The Company’s Right of First Refusal will terminate when the
Company’s securities become publicly traded. 
 SECTION 8.  LEGALITY OF INITIAL ISSUANCE. 

 The exercise of the Option and the issuance and transfer of Shares shall be subject to compliance by the Company
and Participant with all applicable requirements of federal, state and foreign securities laws and with all applicable requirements of any stock exchange on which the Company’s Common Stock may be listed at the time of such issuance or
transfer. Participant understands that the Company is under no obligation to register or qualify the Shares with the United States SEC, any state or foreign securities commission or any stock exchange to effect such compliance. No Shares shall be
issued upon the exercise of this Option unless and until the Company has determined that: 

 (a)        It and the Participant have taken any actions required to
register the Shares under the Securities Act or to perfect an exemption from the registration requirements thereof; 

 (b)        Any applicable listing requirement of any stock exchange or
other securities market on which Stock is listed has been satisfied; and 

 (c)        Any other applicable provision of federal, state or foreign law
has been satisfied. 
 SECTION 9.  NATURE OF GRANT. 

 In accepting the grant, Participant acknowledges that: 

 (a)        the Plan is established voluntarily by the Company, it is
discretionary in nature and it may be modified, amended, suspended or terminated by the Company at any time; 

 (b)        the grant of the Option is voluntary and occasional and does
not create any contractual or other right to receive future grants of Options, or benefits in lieu of Options, even if Options have been granted repeatedly in the past; 

 (c)        all decisions with respect to future Option grants, if any,
will be at the sole discretion of the Company; 
  

 6 

  (d)        the
Participant’s participation in the Plan will not create a right to further employment with the Employer and shall not interfere with the ability of the Employer to terminate Participant’s employment relationship at any time with or without
Cause; 
  (e)        the Participant is voluntarily participating
in the Plan; 
  (f)        the Option is an extraordinary item
that does not constitute compensation of any kind for services of any kind rendered to the Company or the Employer, and which is outside the scope of Participant’s employment contract, if any; 

 (g)        the Option and the Shares subject to the Option are not intended
to replace any pension rights or compensation; 
  (h)        the
Option and the Shares subject to the Option are not part of normal or expected compensation or salary for any purposes, including, but not limited to, calculating any severance, resignation, termination, redundancy, dismissal, end of service
payments, bonuses, long-service awards, pension or welfare or retirement benefits or similar payments and in no event should be considered as compensation for, or relating in any way to, past services for the Company or the Employer or any
Subsidiary; 
  (i)        the Option grant and Participant’s
participation in the Plan will not be interpreted to form an employment contract or relationship with Company or any Subsidiary; 

 (j)        the future value of the underlying Shares is unknown and cannot
be predicted with certainty; 
  (k)        if the underlying
Shares do not increase in value, the Option will have no value; 

 (l)        if Participant exercises his or her Option and obtains Shares,
the value of those Shares acquired upon exercise may increase or decrease in value, even below the Exercise Price; 

 (m)        in consideration of the grant of the Option, no claim or
entitlement to compensation or damages shall arise from termination of the Option resulting from termination of Participant’s employment with the Company or the Employer (for any reason whatsoever and whether or not in breach of local labor
laws) and Participant irrevocably releases the Company and the Employer from any such claim that may arise; if, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen, Participant will be deemed
irrevocably to have waived his or her entitlement to pursue such claim; 

 (n)        the Company is not providing any tax, legal or financial
advice, nor is the Company making any recommendations regarding Participant’s participation in the Plan, or Participant’s acquisition or sale of the underlying Shares; 

 (o)        Participant is hereby advised to consult with his or her own
personal tax, legal and financial advisors regarding Participant’s participation in the Plan before taking any action related to the Plan; and 
  

 7 

  (p)        the Option and the
benefits under the Plan, if any, will not automatically transfer to another company in the case of a merger, take-over or transfer of liability. 

SECTION 10.  NO REGISTRATION RIGHTS. 

 The Company may, but shall not be obligated to, register or qualify the sale of Shares under the Securities Act or
any other applicable law. The Company shall not be obligated to take any affirmative action in order to cause the sale of Shares under this Agreement to comply with any law. 

SECTION 11.  RESTRICTIONS ON TRANSFER. 

 (a)        Securities Law
Restrictions.    Regardless of whether the offering and sale of Shares under the Plan have been registered under the Securities Act or have been registered or qualified under the securities laws of any state, the Company at
its discretion may impose restrictions upon the sale, pledge or other transfer of such Shares (including the placement of appropriate legends on stock certificates or the imposition of stop-transfer instructions) if, in the judgment of the Company,
such restrictions are necessary or desirable in order to achieve compliance with the Securities Act, the securities laws of any state or any other law. 

 (b)        Market Stand-Off.    In connection
with the first registered offering of the Company’s Common Stock (the “Initial Public Offering”) for the account of the Company to the public pursuant to a registration statement declared effective by the Securities and
Exchange Commission (the “Commission”) or any other administering federal agency at the time pursuant to the Securities Act, or any similar federal rule or statute and the rules and regulations of the Commission
thereunder, all as the same be in effect at the time, the Participant or a Transferee shall not directly or indirectly sell, make any short sale of, loan, hypothecate, pledge, offer, grant or sell any option or other contract for the purchase of,
purchase any option or other contract for the sale of, or otherwise dispose of or transfer, or agree to engage in any of the foregoing transactions with respect to, any Shares acquired under this Agreement without the prior written consent of the
Company or its underwriters, as the case may be, for such period of time not to exceed 180 days from the effective date of such registration as may be requested by the Company or such underwriters; provided, however, that if during the last 17 days
of the restricted period the Company issues an earnings release or material news or a material event relating to the Company occurs, or prior to the expiration of the restricted period the Company announces that it will release earnings results
during the 16-day period beginning on the last day of the restricted period, and if the Company’s securities are listed on the Nasdaq Stock Market and Rule 2711 thereof applies, then the restrictions imposed herein shall continue to apply until
the expiration of the 18-day period beginning on the issuance of the earnings release or the occurrence of the material news or material event. In no event will the restricted period extend beyond 215 days after the effective date of the
registration statement. The Company may impose stop-transfer instructions with respect to the Shares acquired under this Agreement until the end of such period. The Company’s underwriters shall be beneficiaries of the agreement set forth in
this Subsection (b). Participant further agrees to enter into any agreement reasonably required by the underwriters to implement the foregoing. 
  

 8 

  (c)        Investment
Intent at Grant.    The Participant represents and agrees that the Shares to be acquired upon exercising this Option will be acquired for investment, and not with a view to the sale or distribution thereof. 

 (d)        Investment Intent at Exercise.    In
the event that the sale of Shares under the Plan is not registered under the Securities Act but an exemption is available which requires an investment representation or other representation, the Participant shall represent and agree at the time of
exercise that the Shares being acquired upon exercising this Option are being acquired for investment, and not with a view to the sale or distribution thereof, and shall make such other representations as are deemed necessary or appropriate by the
Company and its counsel. 

 (e)        Legends.    All certificates
evidencing Shares purchased under this Agreement shall bear the following legend: 
 “THE SHARES REPRESENTED HEREBY MAY NOT
BE SOLD, ASSIGNED, TRANSFERRED, ENCUMBERED OR IN ANY MANNER DISPOSED OF, EXCEPT IN COMPLIANCE WITH THE TERMS OF A WRITTEN AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED HOLDER OF THE SHARES (OR THE PREDECESSOR IN INTEREST TO THE SHARES). SUCH
AGREEMENT GRANTS TO THE COMPANY CERTAIN RIGHTS OF FIRST REFUSAL UPON AN ATTEMPTED TRANSFER OF THE SHARES. THE SECRETARY OF THE COMPANY WILL UPON WRITTEN REQUEST FURNISH A COPY OF SUCH AGREEMENT TO THE HOLDER HEREOF WITHOUT CHARGE.” 

All certificates evidencing Shares purchased under this Agreement in an unregistered transaction shall bear the following legend (and
such other restrictive legends as are required or deemed advisable under the provisions of any applicable law): 
 “THE
SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR AN OPINION OF COUNSEL, SATISFACTORY
TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.” 

 (f)        Removal of Legends.    If, in the
opinion of the Company and its counsel, any legend placed on a stock certificate representing Shares sold under this Agreement is no longer required, the holder of such certificate shall be entitled to exchange such certificate for a certificate
representing the same number of Shares but without such legend. 

 (g)        Administration.    Any determination
by the Company and its counsel in connection with any of the matters set forth in this Section 11 shall be conclusive and binding on the Participant and all other persons. 

 

 9 

 SECTION 12.  DATA PRIVACY. 

 Participant hereby explicitly and unambiguously consents to the collection, use and transfer, in
electronic or other form, of his or her personal data as described in this document by and among, as applicable, the employer (if other than the Company)(the “Employer”), the Company and its Subsidiaries and affiliates for the exclusive
purpose of implementing, administering and managing Participant’s participation in the Plan. 

 Participant understands that the Company and the Employer may hold certain personal information about
him or her, including, but not limited to, Participant’s name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any Shares or directorships held in the
Company, details of all Options or any other entitlement to Shares awarded, canceled, exercised, vested, unvested or outstanding in Participant’s favor, for the purpose of implementing, administering and managing the Plan
(“Data”). 
  Participant understands that Data will be transferred
to a third party broker, or such other stock plan service provider as may be selected by the Company in the future, which is assisting the Company with the implementation, administration and management of the Plan. Participant understands that the
recipients of the Data may be located in the United States or elsewhere, and that the recipients’ country may have different data privacy laws and protections than Participant’s country. Participant understands that he or she may request a
list with the names and addresses of any potential recipients of the Data by contacting Participant’s local human resources representative. Participant authorizes the Company, the broker and any other possible recipients which may assist the
Company (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer the Data, in electronic or other form, for the sole purpose of implementing, administering and managing
Participant’s participation in the Plan. Participant understands that Data will be held only as long as is necessary to implement, administer and manage his or her participation in the Plan. Participant understands that he or she may, at any
time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing Participant’s local
human resources representative. Participant understands, however, that refusing or withdrawing his or her consent may affect Participant’s ability to participate in the Plan. For more information on the consequences of Participant’s
refusal to consent or withdrawal of consent, Participant understands that he or she may contact his or her local human resources representative. 

SECTION 13.  MISCELLANEOUS PROVISIONS. 

 (a)        Rights as a Stockholder.    Neither
the Participant nor the Participant’s representative shall have any rights as a stockholder with respect to any Shares subject to this Option until the Participant or the Participant’s representative becomes entitled to receive such Shares
by filing a Notice of Exercise and paying the Purchase Price pursuant to Sections 4 and 5. 

 (b)        No Retention Rights.    Nothing in
this Option or in the Plan shall confer upon the Participant any right to continue in Service for any period of specific duration or 

 

 10 

 
interfere with or otherwise restrict in any way the rights of the Company (or any Parent or Subsidiary employing or retaining the Participant) or of the Participant, which rights are hereby
expressly reserved by each, to terminate his or her Service at any time and for any reason, with or without Cause. 

 (c)        Notice.    Any notice required by
the terms of this Agreement shall be given in writing. It shall be deemed effective upon (i) personal delivery, (ii) deposit with the United States Postal Service, by registered or certified mail, with postage and fees prepaid or
(iii) deposit with Federal Express Corporation, with shipping charges prepaid. Notice shall be addressed to the Company at its principal executive office and to the Participant at the address that he or she most recently provided to the Company
in accordance with this Subsection (c). Notwithstanding the above, the Company may, in its sole discretion, decide to deliver any documents related to the Option granted under the Plan or future Options that may be granted under the Plan by
electronic means or to request Participant’s consent to participate in the Plan by electronic means. Such electronic means include posting the documents on a web site maintained by the Company or by a third party under contract with the
Company. If the Company posts these documents on a web site, it will notify Participant by email. Participant hereby consents to receive such documents by electronic delivery and, if requested, to agree to participate in the Plan through an on-line
or electronic system established and maintained by the Company or another third-party designated by the Company. 

 (d)        Entire Agreement.    The Notice of
Stock Option Grant, this Agreement (and any Appendix hereto) and the Plan constitute the entire contract between the parties hereto with regard to the subject matter hereof. They supersede any other agreements, representations or understandings
(whether oral or written and whether express or implied) which relate to the subject matter hereof. 

 (e)        Successors and Assigns.    The
Company may assign any of its rights under this Agreement including its rights to purchase Shares under the Right of First Refusal. No other party to this Agreement may assign, whether voluntarily or by operation of law, any of its rights and
obligations under this Agreement, except with the prior written consent of the Company. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth
herein, this Agreement shall be binding upon Participant and Participant’s heirs, executors, administrators, legal representatives, successors and assigns. 

 (f)        Choice of Law.    This Agreement
shall be governed by, and construed in accordance with, the laws of the State of California, as such laws are applied to contracts entered into and performed in such State. For purposes of litigating any dispute that arises directly or indirectly
from the relationship of the parties evidenced by this Option and this Agreement, the parties hereby submit to and consent to the exclusive jurisdiction of the State of California and agree that such litigation shall be conducted only in the courts
of Santa Clara County, California, or the federal courts for the Northern District of California, and no other courts where the grant of this Option is made and/or to be performed. 

 (g)        Acceptance.    Participant hereby
acknowledges receipt of a copy of the Plan, the Notice of Stock Option Grant and this Agreement. Participant has read and 
  

 11 

 
understands the terms and provisions thereof, and accepts the Option subject to all the terms and conditions of the Plan, the Notice of Stock Option Grant and this Agreement. Participant
acknowledges that there may be adverse tax consequences upon exercise of the Option or disposition of the Shares and that Participant should consult a tax adviser prior to such exercise or disposition. 

 (h)        Further Assurances.    The parties
agree to execute such further documents and instruments and to take such further actions as may be reasonably necessary to carry out the purposes and intent of this Agreement. 

 (i)        Titles and Headings.    The titles,
captions and headings of this Agreement are included for ease of reference only and will be disregarded in interpreting or construing this Agreement. Unless otherwise specifically stated, all references herein to “sections” and
“exhibits” will mean “sections” and “exhibits” to this Agreement. 

 (j)        Counterparts.    This Agreement may
be executed in any number of counterparts, each of which when so executed and delivered will be deemed an original, and all of which together shall constitute one and the same agreement. 

 (k)        Severability.    If any provision of
this Agreement is determined by any court or arbitrator of competent jurisdiction to be invalid, illegal or unenforceable in any respect, such provision will be enforced to the maximum extent possible given the intent of the parties hereto. If such
clause or provision cannot be so enforced, such provision shall be stricken from this Agreement and the remainder of this Agreement shall be enforced as if such invalid, illegal or unenforceable clause or provision had (to the extent not
enforceable) never been contained in this Agreement. Notwithstanding the forgoing, if the value of this Agreement based upon the substantial benefit of the bargain for any party is materially impaired, which determination as made by the presiding
court or arbitrator of competent jurisdiction shall be binding, then both parties agree to substitute such provision(s) through good faith negotiations. 

 (l)        Language.    If Participant has
received this Agreement or any other document related to the Plan translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control. 

 (m)        Appendix.    Notwithstanding any
provisions in this Agreement, the Option shall be subject to any special terms and conditions set forth in any Appendix to this Agreement for Participant’s country. Moreover, if Participant relocates to one of the countries included in the
Appendix, the special terms and conditions for such country will apply to Participant to the extent the Company determines that the application of such terms and conditions is necessary or advisable in order to comply with local law or facilitate
the administration of the Plan. The Appendix constitutes part of this Agreement. 

 (n)        Other Requirements.    The Company
reserves the right to impose other requirements on Participant’s participation in the Plan, on the Option and on any Shares acquired under the Plan, to the extent the Company determines it is necessary or advisable in order to comply with local
law or facilitate the administration of the Plan, and to require Participant to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing. 

 

 12 

 SECTION 14.  DEFINITIONS. 

 (a)        “Agreement” shall mean this Stock Option
Agreement. 
  (b)        “Board of Directors”
shall mean the Board of Directors of the Company, as constituted from time to time or, if a Committee has been appointed, such Committee. 

 (c)        “Cause” shall have the meaning set forth in
the Plan. 
  (d)        “Code” shall mean the
Internal Revenue Code of 1986, as amended. 

 (e)        “Committee” shall mean a committee of the
Board of Directors, as described in the Plan. 

 (f)        “Company” shall mean Force10 Networks, Inc., a
Delaware corporation. 
  (g)        “Consultant”
shall mean a person who performs bona fide services for the Company, a Parent or a Subsidiary as a consultant or advisor, excluding Employees and Outside Directors. 

 (h)        “Date of Grant” shall mean the date specified
in the Notice of Stock Option Grant, which date shall be the later of (i) the date on which the Board of Directors resolved to grant this Option or (ii) the first day of the Participant’s Service. 

 (i)        “Disability” shall have the meaning set forth
in the Plan. 
  (j)        “Employee” shall mean
any individual who is a common-law employee of the Company, a Parent or a Subsidiary. 

 (k)        “Exercisability Period” shall mean:

  (i)        in the event of an Exercise Event that is not a
Qualifying Change in Control: 
  (i)        in the case of the
Participant’s Termination other than for death or Disability, a period of three (3) months following the Exercise Event; and 

 (ii)        in the case of the Participant’s Termination for death or
Disability, or in the case of the Participant’s death or Disability prior to the date that is three (3) months following the Exercise Event, a period of twelve (12) months after the Exercise Event. 

 (ii)        in the event of an Exercise Event constituting a Qualifying
Change in Control, immediately prior to such Qualifying Change in Control. 
  

 13 

  (l)        “Exercise
Event” shall mean the earlier of (i) the second anniversary of the Date of Grant, (ii) immediately prior to a Qualifying Change in Control, or (iii) an initial public offering of the Company’s common stock on a national
securities exchange. 
  (m)        “Exercise
Price” shall mean the amount for which one Share may be purchased upon exercise of this Option, as specified in the Notice of Stock Option Grant. 

 (n)        “Fair Market Value” shall mean the fair market
value of a Share, as determined by the Board of Directors in good faith. Such determination shall be conclusive and binding on all persons. 

 (o)        “Notice of Stock Option Grant” shall mean the
document so entitled to which this Agreement is attached. 

 (p)        “NSO” shall mean a stock option not described
in Sections 422(b) or 423(b) of the Code. 

 (q)        “Outside Director” shall mean a member of the
Board of Directors who is not an Employee. 

 (r)        “Parent” shall mean any corporation (other
than the Company) in an unbroken chain of corporations ending with the Company, if each of the corporations other than the Company owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other
corporations in such chain. 

 (s)        “Participant” shall mean the person named in
the Notice of Stock Option Grant. 

 (t)        “Plan” shall mean the Force 10 Networks, Inc.
2007 Equity Incentive Plan. 
  (u)        “Purchase
Price” shall mean the Exercise Price multiplied by the number of Shares with respect to which this Option is being exercised. 

 (v)        “Qualifying Change in Control” shall mean the
closing of a transaction constituting a change in control of the Company in connection with which outstanding awards are not assumed by the surviving or successor corporation, if any, and consequentially become fully exercisable pursuant to
Section 17.1 of the Plan. 
  (w)        “Right of
First Refusal” shall mean the Company’s right of first refusal described in Section 7. 

 (x)        “Securities Act” shall mean the Securities Act
of 1933, as amended. 
  (y)        “Service”
shall mean service as an Employee, Outside Director or Consultant. 

 (z)        “Share” shall mean one share of Stock, as
adjusted in accordance with Section 2.2 of the Plan (if applicable). 
  

 14 

  (aa)     “Stock” shall mean
the Common Stock of the Company, with a par value of $0.0001 per Share. 

 (bb)    “Subsidiary” shall mean any corporation (other than the Company) in
an unbroken chain of corporations beginning with the Company, if each of the corporations other than the last corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of
the other corporations in such chain. 
  (cc)     “Transferee”
shall mean any person to whom the Participant has directly or indirectly transferred any Share acquired under this Agreement. 
  

 15 

 FORCE10 NETWORKS, INC. 2007
EQUITY INCENTIVE PLAN 
 Appendix A 

Special Terms and Conditions for Non-U.S. Participants 

This Appendix includes additional country-specific terms that apply to Participants resident in the countries listed below. This
Appendix is part of the Agreement and contains terms and conditions material to participation in the Plan. Unless otherwise provided below, capitalized terms used but not defined herein shall have the same meanings assigned to them in the Plan and
the Agreement. 
 This Appendix is based on the laws in effect as of June 2009. Such laws often are complex and change
frequently. As a result, the Company strongly recommends that Participant not rely on the information noted herein as the only source of information relating to the consequences of Participant’s participation in the Plan because the information
may be out of date at the time Participant exercises his or her Option, his or her Option vests or Participant purchases or sells Shares acquired under the Plan. 

In addition, the information contained herein is general in nature. It may not apply to a particular tax or financial situation, and
the Company is not in a position to assure Participant of any particular result. Accordingly, please seek appropriate professional advice if there are any questions about a specific situation. 

Finally, if Participant is a citizen or resident of a country, or is considered resident of a country, other than the one in which
Participant is currently working, the information contained herein may not be applicable to Participant. 
 AUSTRALIA

 Securities Law Information 

If Participant acquires Shares pursuant to this Option and offers Shares for sale to a person or entity resident in Australia, the offer
may be subject to disclosure requirements under Australian law. Participant should obtain legal advice on disclosure obligations prior to making any such offer. 

CANADA  
 Form of Payment 

 This section supplements Section 4: Exercise Procedures in the Agreement: 

Notwithstanding any language in the Plan to the contrary, due to legal restrictions in Canada, Participant is prohibited from
surrendering Shares he or she already owns or attesting to the ownership of Shares to pay the Exercise Price or any Tax-Related Items due in connection with the Option. 

 Consent to Receive Information in English 

By accepting the Option, Participant confirms having read and understood the Plan and Agreement, including all terms and conditions
included therein, which were provided in the English language. Participant accepts the terms of those documents accordingly. 

En acceptant cette Option, le Participant confirme avoir lu et compris le Plan et le Contrat y relatifs, incluant tous leurs termes et
conditions, qui ont été transmis en langue anglaise. Le Participant accepte les dispositions de ces documents en connaissance de cause. 

CHINA 

Notwithstanding anything in the Agreement or the Plan to the contrary, Participants in the People’s Republic of China (the
“PRC”) may not exercise this Option until such time as the Shares are publicly traded on a recognized stock exchange. 

Further, notwithstanding anything in the Agreement or the Plan to the contrary, Participant must exercise this Option using the same day
sale method (as described in Section 5(a) of the Agreement). To the extent that regulatory requirements change, the Company reserves the right to permit exercises through any of the means noted in Section 5 of the Agreement. 

Participant further understands and agrees that due to exchange control laws in the PRC, Participant may be required to immediately
repatriate the cash proceeds from same day sale exercise to the PRC. Participant further understands that such repatriation of the cash proceeds may need to be effected through a special exchange control account established by the Company or a
Subsidiary or affiliate, and Participant hereby consents and agrees that the cash proceeds may be transferred to such special account prior to being delivered to him or her. Participants who are non-PRC citizens are not subject to the repatriation
requirement. 
 FRANCE 

Consent to Receive Information in English 

By accepting the Option, Participant confirms having read and understood the Plan and Agreement, including all terms and conditions
included therein, which were provided in the English language. Participant accepts the terms of those documents accordingly. 

En acceptant cette Option, le Participant confirme avoir lu et compris le Plan et le Contrat y relatifs, incluant tous leurs termes et
conditions, qui ont été transmis en langue anglaise. Le Participant accepte les dispositions de ces documents en connaissance de cause. 
  

 2 

 GERMANY 

In the unlikely event that Participant holds Shares exceeding 10% of the total capital of the Company, Participant must report their
individual holdings in the Company on an annual basis. 
 INDIA 

Method of Payment 
 This
section supplements Section 5: Payment for Stock in the Agreement: 
 Due to legal restrictions in India, even if the
shares are publicly-traded, Participant will not be permitted to pay the Exercise Price by a partial cashless exercise (i.e., a “sell-to-cover” exercise) whereby a certain number of Shares subject to the exercised Option are sold
immediately upon exercise to cover the aggregate Exercise Price, brokers’ fees and any Tax-Related Items and the remaining Shares are delivered to Participant. The Company reserves the right to provide Participant with this method of payment in
the future depending on the development of local laws. 
 Exchange Control Notification 

Participant understands that he or she must repatriate to India any proceeds from the sale of Shares acquired under the Plan and any
dividends received in relation to the Shares and convert the funds into local currency within ninety (90) days of receipt. Participant must obtain a foreign inward remittance certificate (“FIRC”) from the bank where the
foreign currency is deposited and maintain the FIRC as evidence of the repatriation of funds in the event the Reserve Bank of India or the Employer requests proof of repatriation. 

Fringe Benefit Tax 
 By
accepting and exercising this Option, Participant consents and agrees to assume any and all liability for fringe benefit tax that may be payable by the Company, the Employer and/or a Subsidiary or affiliate in connection with the Plan upon request
of the Company and at the Company’s sole discretion. Participant understands that the exercise of this Option is contingent upon Participant’s agreement to assume liability for any fringe benefit tax payable in connection with the exercise
of this Option that the Company may notify Participant that he or she is responsible for. 
 Further, by accepting this Option,
Participant agrees that the Company and/or the Employer may collect the fringe benefit tax from Participant by any of the means set forth in Section 4(d): Withholding Taxes in the Agreement or any other reasonable method established by the
Company. Participant also agrees to execute any other consents or elections required to accomplish the foregoing, promptly upon request of the Company. Participant understands that the Company may refuse to deliver Shares to Participant if the
Company or the Employer is unable to recover from Participant the amount of any fringe benefit tax due in connection with the Option. 
  

 3 

 JAPAN 

Exchange Control Notification 

If Participant pays more than ¥30,000,000 in a single transaction for the purchase of Shares when Participant exercises the Option,
Participant must file a Payment Report with the Ministry of Finance through the Bank of Japan by the 20th day of the month following the month in which the payment was made. The precise reporting requirements vary depending on whether the relevant
payment is made through a bank in Japan. 
 KOREA 

Exchange Control Notification 

Exchange control laws require Korean residents who realize US$500,000 or more from the sale of Shares to repatriate the sale proceeds back
to Korea within eighteen (18) months of the sale. 
 If Participant remits funds to purchase Shares, the remittance must be
“confirmed” by a foreign exchange bank in Korea. To receive the confirmation, Participant should submit the following to the foreign exchange bank: (i) a prescribed form application; (ii) the grant agreement, notice of grants and
any other Plan documents received; and (iii) certificate of employment with the local employer. Participant should check with the bank to determine whether there are any additional requirements. 

MALAYSIA 
 Malaysian Insider
Trading Notification 
 Participant should be aware of the Malaysian insider-trading rules, which may impact his or her
acquisition or disposal of Shares or rights to Shares under the Plan. Under the Malaysian insider-trading rules, Participant is prohibited from acquiring or selling Shares or rights to Shares (e.g., Options granted under the Plan) when
Participant possesses information which is not generally available and which Participant knows or should know will have a material effect on the price of Shares once such information is generally available. 

Director Notification 

If Participant is a director of a Malaysian Subsidiary or affiliate of the Company, Participant is subject to certain notification
requirements under the Malaysian Companies Act, 1965. Among these requirements is an obligation to notify the Malaysian Subsidiary or affiliate in writing upon receipt of an interest (e.g., this Option, Shares) in the Company or any related
companies. In addition, Participant must notify the Malaysian Subsidiary or affiliate upon the sale of Company Shares or any related company (including the sale of Stock acquired under the Plan). These notifications must be made within fourteen
(14) days of acquiring or disposing of any interest in the Company or any related company. 
  

 4 

 SINGAPORE 

Securities Law Information 

The Option grant is being made in reliance on Section 273(l)(f) of the Securities and Futures Act (Cap. 289) (“SFA”), under
which it is exempt from the prospectus and registration requirements under the SFA. 
 Director Notification. 

If Participant is a director, associate director or shadow director of a Singaporean Subsidiary or affiliate of the Company, Participant
is subject to certain notification requirements under the Singapore Companies Act. Among these requirements is an obligation to notify the Singapore Subsidiary or affiliate in writing when Participant receives an interest (e.g., Options,
Shares) in the Company or any related companies. In addition, Participant must notify the Singaporean Subsidiary or affiliate when Participant sells Shares of the Company or any related company (including when Participant sells Shares acquired
through exercise of this Option). These notifications must be made within two days of acquiring or disposing of any interest in the Company or any related company. In addition, a notification must be made of Participant’s interests in the
Company or any related company within two days of becoming a director. 
 SPAIN 

Exchange Control Notification 

When receiving foreign currency payments derived from the ownership of Shares (i.e., dividends or sale proceeds), Participant must
inform the financial institution receiving the payment of the basis upon which such payment is made. Participant will need to provide the institution with the following information: (i) name, address, and fiscal identification number;
(ii) the name and corporate domicile of the Company; (iii) the amount of the payment; the currency used; (iv) the country of origin; (v) the reasons for the payment; and (vi) further information that may be required.

 If Participant acquires Shares under the Plan and wishes to import the ownership title of such Shares (i.e., share
certificates) into Spain, Participant must declare the importation of such securities to the DGPCIE. 
 Labor Law Acknowledgment

 This provision supplements Section 9: Nature of Grant in the Agreement: 

By accepting this Option, Participant acknowledges that he or she understands and agrees to participation in the Plan and that he or she
has received a copy of the Plan. 
  

 5 

 Participant understands that the Company has unilaterally, gratuitously and discretionally
decided to grant Options under the Plan to individuals who may be employees of the Company or its Subsidiaries or affiliates throughout the world. The decision is a limited decision that is entered into upon the express assumption and condition that
any grant will not economically or otherwise bind the Company or any of its Subsidiaries or affiliates on an ongoing basis. Consequently, Participant understands that any grant is given on the assumption and condition that it shall not become a part
of any employment contract (either with the Company or any of its Subsidiaries or affiliates) and shall not be considered a mandatory benefit, salary for any purposes (including severance compensation) or any other right whatsoever. Further,
Participant understands and freely accepts that there is no guarantee that any benefit whatsoever shall arise from any gratuitous and discretionary grant since the future value of this Option and Shares is unknown and unpredictable. In addition,
Participant understands that this grant would not be made but for the assumptions and conditions referred to above; thus, Participant understands, acknowledges and freely accepts that should any or all of the assumptions be mistaken or should any of
the conditions not be met for any reason, then any Option shall be null and void. 
 THAILAND 

Exchange Control Notification 

Participant must repatriate the proceeds from the sale of Shares and any cash dividends received in relation to the Shares to Thailand
within 360 days and convert the funds to Thai Baht within 360 days from the repatriation date. If the repatriated amount is US$20,000 or more, Participant must report the inward remittance by submitting a Foreign Exchange Transaction Form.

 UNITED KINGDOM 

Tax Acknowledgment 
 This
section supplements 4(d): Withholding Taxes in the Agreement: 
 If payment or withholding of the Tax-Related Items (including
the Employer NICs, as defined below) is not made within ninety (90) days of the event giving rise to the Tax-Related Items (the “Due Date”) or such other period specified in Section 222(l)(c) of the U.K. Income Tax
(Earnings and Pensions) Act 2003, the amount of any uncollected Tax-Related Items will constitute a loan owed by Participant to the Employer, effective on the Due Date. Participant agrees that the loan will bear interest at the then-current Official
Rate of Her Majesty’s Revenue and Customs (“HMRC”), it will be immediately due and repayable, and the Company or the Employer may recover it at any time thereafter by any of the means referred to in Section 4(d) of
the Agreement. 
 Notwithstanding the foregoing, if Participant is a director or executive officer of the Company (within the
meaning of Section 13(k) of the U.S. Securities Exchange Act of 1934, as amended), Participant will not be eligible for such a loan to cover the Tax-Related Items. In the event that Participant is a director or executive officer and the
Tax-Related Items are not collected from or paid by Participant by the Due Date, the amount of any uncollected Tax-Related Items will constitute a benefit to Participant on which additional income tax and National Insurance

  

 6 

 
Contributions (“NICs”) (including the Employer NICs, as defined below) will be payable. Participant will be responsible for reporting and paying any income tax and NICs
(including the Employer NICs, as defined below) due on this additional benefit directly to HMRC under the self-assessment regime. 
 Joint
Election for Transfer of Secondary Class 1 National Insurance Contributions to Participant 
 As a condition of the exercise
of the Option, Participant agrees to accept any liability for secondary Class 1 National Insurance Contributions (the “Employer NICs”) which may be payable by the Company or the Employer with respect to the exercise of the
Option or otherwise payable with respect to a benefit derived in connection with the Option. 
 Without limitation to the
foregoing, Participant agrees to execute a joint election between the Company and/or the Employer and Participant (the “Joint Election”), the form of such Joint Election being formally approved by HMRC, and any other consent
or election required to accomplish the transfer of the Employer NICs to Participant. Participant further agrees to execute such other joint elections as may be required between Participant and any successor to the Company and/or the Employer. If
Participant does not enter into a Joint Election prior to exercise of the Option, any purported exercise of the Option shall be null and void without any liability to the Company and/or the Employer. Participant further agrees that the Company
and/or the Employer may collect the Employer NICs from Participant by any of the means set forth in Section 4(d) of the Agreement. 
  

 7 

 FORCE10 NETWORKS, INC. 2007
EQUITY INCENTIVE PLAN 
 NOTICE OF
STOCK OPTION EXERCISE – EARLY EXERCISE 

(RULE 506 EXEMPTION) 

You must sign this Notice on Page 5 before submitting it to the Company. 

PARTICIPANT INFORMATION: 
  

							
	 Name:
	 	  
	  		  	 Social Security Number:
                                

				
	 Address:
	 	  
	  		  	
Employee Number:                          
               

				
		 	  
	  		  	

 OPTION INFORMATION: 

 

			
	 Date of Grant:
                                Grant Number:
                    
	  	         Type of Stock Option:

		
	 Exercise Price per Share:
$                    
	  	          ̈  Nonstatutory (NSO)

		
	 Total number of shares of Common Stock of Force10 Networks, Inc.

(the “Company”) covered by Option:
                                
	  	          ̈  Incentive (ISO)

EXERCISE INFORMATION: 

Number of shares of Common Stock of the Company for which Option is being exercised now:
                    . (These shares are referred to below as the “Purchased Shares.”) 

Total Exercise Price for the Purchased Shares:
$                     

Form of payment enclosed [check all that apply]: 

 

	 ̈	 Check for $                , payable to “Force10 Networks,
Inc.” 

  

	 ̈	 Certificate(s) for                      shares
of Common Stock of the Company that I have owned for at least six months. (These shares will be valued as of the date this notice is received by the Company.) 

Name(s) in which the Purchased Shares should be registered [please review the attached explanation of the available forms of
ownership, and then check one box]: 
  

							
	  ̈
	 	 In my name only
	 		  	
				
	  ̈
	 	 In the names of my spouse and myself as community property
	 		  	 My spouse’s name (if applicable):

				
	  ̈
	 	 In the names of my spouse and myself as joint tenants with the right of survivorship
	 		  	  

 

				
	  ̈
	 	 In the name of an eligible revocable trust 

[requires Stock Transfer Agreement] 
	 		  	 Full legal name of revocable trust:

 
  

 

			
	 The certificate for the Purchased Shares should be sent to the following address:
	 		  	  

 
  

 REPRESENTATIONS AND ACKNOWLEDGMENTS OF
THE PARTICIPANT: 
  

	1.	 I represent and warrant to the Company that I am acquiring and will hold the Purchased Shares for investment purposes only and for my own account,
not as a nominee or agent, and not with a view to the public resale or distribution thereof within the meaning of the Securities Act of 1933, as amended (the “Securities Act”). I have no present intention of selling, granting any
participation in, or otherwise distributing the same. 

  

	2.	 I acknowledge that I have received or have had full access to all the information I consider necessary or appropriate to make an informed investment
decision with respect to the Purchased Shares. I further have had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the offering of the Purchased Shares and to obtain additional information
(to the extent the Company possessed such information or could acquire it without unreasonable effort or expense) necessary to verify any information furnished to me or to which I had access. 

 

	3.	 I understand that an investment in the Purchased Shares involves substantial risk. I: (i) have experience as an investor in securities of
companies in the development stage and acknowledge that I am able to fend for myself, can bear the economic risk of my investment in the Purchased Shares and have such knowledge and experience in financial or business matters that I am capable of
evaluating the merits and risks of this investment in the Purchased Shares and protecting my own interests in connection with this investment and/or (ii) have a preexisting personal or business relationship with the Company and certain of its
officers, directors or controlling persons of a nature and duration that enables me to be aware of the character, business acumen and financial circumstances of such persons. I am an “accredited investor” within the meaning of Securities
and Exchange Commission Rule 501 of Regulation D, as presently in effect, under the Securities Act. 

  

	4.	 I am fully aware of: (i) the highly speculative nature of the investment in the Purchased Shares; (ii) the financial hazards involved;
(iii) the lack of liquidity of the Purchased Shares and the restrictions on transferability of the Purchased Shares (e.g., that I may not be able to sell or dispose of the Purchased Shares or use them as collateral for loans); (iv) the
qualifications and backgrounds of the management of the Company; and (v) the tax consequences of investment in the Purchased Shares. I am capable of evaluating the merits and risks of this investment, have the ability to protect my own
interests in this transaction and am financially capable of bearing a total loss of this investment. 

  

	5.	 At no time was I presented with or solicited by any publicly issued or circulated newspaper, mail, radio, television or other form of general
advertising or solicitation in connection with the offer, sale and purchase of the Purchased Shares. 

  

	6.	 I understand that the Purchased Shares are characterized as “restricted securities” under the Securities Act inasmuch as they is being
acquired from the Company in a transaction not involving a public offering and that under the Securities Act and applicable regulations thereunder such securities may be resold without registration under the Securities Act only in certain limited
circumstances. In this connection, I represent that I am familiar with Rule 144 of the U.S. Securities and Exchange Commission, as presently in effect, and understands the resale limitations imposed thereby and by the Securities Act. Participant
understands that the Company is under no obligation to register any of the securities sold hereunder. I understand that no public market now exists for the Purchased Shares and that it is uncertain whether a public market will ever exist for the
Purchased Shares. 

  

	7.	 I understand that the Purchased Shares have not been registered under the Securities Act by reason of a specific exemption therefrom and that the
Purchased Shares must be held indefinitely, unless they are subsequently registered under the Securities Act or I obtain an opinion of counsel (in form and substance satisfactory to the Company and its counsel) that registration is not required.

  

 2 

	8.	 I am aware of the adoption of Rule 144 by the Securities and Exchange Commission under the Securities Act, which permits limited public resales of
securities acquired in a non-public offering, subject to the satisfaction of certain conditions. These conditions include (without limitation) that certain current public information about the issuer is available, that the resale occurs only after
the holding period required by Rule 144 has been satisfied, that the sale occurs through an unsolicited “broker’s transaction” and that the amount of securities being sold during any three-month period does not exceed specified
limitations. I understand that the conditions for resale set forth in Rule 144 have not been satisfied and that the Company has no plans to satisfy these conditions in the foreseeable future. 

 

	9.	 I will not sell, transfer or otherwise dispose of the Purchased Shares in violation of the Securities Act, the Securities Exchange Act of 1934, or
the rules promulgated thereunder, including Rule 144 under the Securities Act. 

  

	10.	 I acknowledge that the Purchased Shares remain subject to the Company’s Right of First Refusal and the market stand-off (sometimes referred to
as the “lock-up”), all in accordance with the applicable Notice of Stock Option Grant and Stock Option Agreement, and that any certificates evidence the Shares shall bear the legends set forth in the Stock Option Agreement as well as the
following legend: 

 “THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A 180 DAY
MARKET STANDOFF RESTRICTION AS SET FORTH IN A CERTAIN AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. AS A RESULT OF SUCH AGREEMENT, THESE SHARES MAY NOT BE
TRADED PRIOR TO 180 DAYS AFTER THE EFFECTIVE DATE OF ANY PUBLIC OFFERING OF THE COMMON STOCK OF THE ISSUER HEREOF. SUCH RESTRICTION IS BINDING ON TRANSFEREES OF THESE SHARES.” 

 

	11.	 As security for my faithful performance of this Notice of Stock Option Exercise and the Stock Option Agreement, I agree, immediately upon receipt of
the stock certificate(s) evidencing the Purchased Shares, to deliver such certificate(s), together with the Stock Powers executed by me and by my spouse, if any (with the date and number of Shares left blank), to the Secretary of the Company or
other designee of the Company (the “Escrow Holder”), who is hereby appointed to hold such certificate(s) and Stock Powers in escrow and to take all such actions and to effectuate all such transfers and/or releases of such
Purchased Shares as are in accordance with the terms of this Notice of Stock Option Exercise and the Stock Option Agreement. I agree that Escrow Holder will not be liable to any party to this Notice of Stock Option Exercise or the Stock Option
Agreement (or to any other party) for any actions or omissions unless Escrow Holder is grossly negligent or intentionally fraudulent in carrying out the duties of Escrow Holder under this Notice of Stock Option Exercise or the Stock Option
Agreement. Escrow Holder may rely upon any letter, notice or other document executed with any signature purported to be genuine and may rely on the advice of counsel and obey any order of any court with respect to the transactions contemplated by
this Notice of Stock Option Exercise or the Stock Option Agreement. The Purchased Shares will be released from escrow upon termination of the Right of First Refusal. 

 

	12.	 I will make no disposition of the Purchased Shares (other than as permitted by this Notice of Stock Option Exercise or the Stock Option Agreement)
unless and until: 

  

	 	(a)	 I shall have notified the Company of the proposed disposition and provided a written summary of the terms and conditions of the proposed
disposition; 

  

	 	(b)	 I shall have complied with all requirements of this Notice of Stock Option Exercise and the Stock Option Agreement applicable to the disposition of
the Purchased Shares; 

  

	 	(c)	 I shall have provided the Company with written assurances, in form and substance satisfactory to counsel for the Company, that (i) the proposed
disposition does not require registration of the Purchased Shares under the Securities Act or (ii) all appropriate actions necessary for compliance with the registration requirements of the Securities Act or of any exemption from registration
available under the Securities Act (including Rule 144) have been taken; 

  

 3 

	 	(d)	 I shall have provided the Company with written assurances, in form and substance satisfactory to the Company, that the proposed disposition will not
result in the contravention of any transfer restrictions applicable to the Purchased Shares pursuant to the laws and provisions referred to in paragraph 5 hereof; and 

 

	 	(e)	 Each person (other than the Company) to whom the Purchased Shares are transferred by means of one of the permitted transfers specified in this
Notice of Stock Option Exercise or the Stock Option Agreement must, as a condition precedent to the validity of such transfer, acknowledge in writing to the Company that such person is bound by the provisions of this Notice of Stock Option Exercise
and Stock Option Agreement and that the transferred Shares are subject to (i) as applicable, the Company’s Right of First Refusal and (ii) the market stand-off provisions, to the same extent such Shares would be so subject if retained
by the Participant. 

  

	13.	 I shall not transfer, assign, grant a lien or security interest in, pledge, hypothecate, encumber or otherwise dispose of any of the Purchased
Shares which are subject to the Company’s Right of First Refusal described below, except as permitted by this Notice of Stock Option Exercise or the Stock Option Agreement. 

 

	14.	 I agree that, to ensure compliance with the restrictions imposed by this Notice of Stock Option Exercise and the Stock Option Agreement, the Company
may issue appropriate “stop-transfer” instructions to its transfer agent, if any, and if the Company transfers its own securities, it may make appropriate notations to the same effect in its own records. 

 

	15.	 I acknowledge that the Company will not be required (i) to transfer on its books any Purchased Shares that have been sold or otherwise
transferred in violation of any of the provisions of this Notice of Stock Option Exercise and the Stock Option Agreement or (ii) to treat as owner of such Purchased Shares, or to accord the right to vote or pay dividends to any purchaser or
other transferee to whom such Purchased Shares have been so transferred. 

  

	16.	 I acknowledge that the Company may assign any of its rights and obligations under this Notice of Stock Option Exercise and the Stock Option
Agreement, including its rights to purchase Shares under the Right of First Refusal. No other party to this Notice of Stock Option Exercise and the Stock Option Agreement may assign, whether voluntarily or by operation of law, any of its rights and
obligations under this Notice of Stock Option Exercise and the Stock Option Agreement, except with the prior written consent of the Company. This Notice of Stock Option Exercise and the Stock Option Agreement shall be binding upon and inure to the
benefit of the successors and assigns of the Company. Subject to the restrictions on transfer herein set forth, this Exercise this Notice of Stock Option Exercise and the Stock Option Agreement will be binding upon Participant and Participant’s
heirs, executors, administrators, legal representatives, successors and assigns. 

  

	17.	 I acknowledge that the Company holds a Repurchase Option as to any Purchased Shares that are unvested at the time of exercise, as provided in the
Stock Option Agreement, and I agree to complete the Restricted Stock Purchase Agreement, Assignment Separate from Certificate, Joint Escrow Instructions and Consent of Spouse attached hereto. I further agree that it is solely my responsibility and
not the Company’s to file timely the election under Section 83(b), even if I request the Company or its representative to make this filing on my behalf. 

 

	18.	 I acknowledge that I am acquiring the Purchased Shares subject to all other terms of the Notice of Stock Option Grant and Stock Option Agreement.

  

	19.	 I acknowledge that the Company has encouraged me to consult my own adviser to determine the form of ownership that is appropriate for me. In the
event that I choose to transfer my Purchased Shares to a trust, I agree to sign a Stock Transfer Agreement. In the event that I choose to transfer my Purchased Shares to a trust that does not satisfy the requirements described in the attached
explanation (i.e., a trust that is not 

  

 4 

	 	 
an eligible revocable trust), I also acknowledge that the transfer will be treated as a “disposition” for tax purposes. As a result, the favorable ISO tax treatment will be unavailable
and other unfavorable tax consequences may occur. 

  

	20.	 I acknowledge that I have received a copy of the Company’s explanation of the federal income tax consequences of an option exercise. I
acknowledge that the Company has encouraged me to consult my own adviser to determine the tax consequences of acquiring the Purchased Shares at this time. 

 

	21.	 I agree to seek the consent of my spouse to the extent required by the Company to enforce the foregoing. 

 

							
	PARTICIPANT	 		 		 	
			
	  
	 		 	 Date:
                                         
               

	 (Signature)
	 		 		 	
			
	  
	 		 	
	 (Please print name)
	 		 	
				
	 Grant Number:
	 	  
	 		 	
				
	 Address:
	 	  
	 		 	
			
	  
	 		 	

  

	Exhibit 1:	Stock Power and Assignment Separate from Stock Certificate 

	Exhibit 2:	Spouse Consent 

  

 5 

 EXHIBIT 1 

STOCK POWER AND ASSIGNMENT 

SEPARATE FROM STOCK CERTIFICATE 

 Stock Power and Assignment 

Separate from Stock Certificate 

FOR VALUE RECEIVED and pursuant to that certain Notice of Stock Option Exercise dated as of
                            ,             ,
[TO BE COMPLETED AT THE TIME OF EXERCISE] (the “Agreement”), the undersigned hereby sells, assigns and transfers unto
                                        ,
                 shares of the Common Stock of Force10 Networks, Inc., a Delaware corporation (the “Company”), standing in the undersigned’s
name on the books of the Company represented by Certificate No(s).              [TO BE COMPLETED AT THE TIME OF EXERCISE] delivered herewith, and does hereby
irrevocably constitute and appoint the Secretary of the Company as the undersigned’s attorney-in-fact, with full power of substitution, to transfer said stock on the books of the Company. THIS ASSIGNMENT MAY ONLY BE USED AS AUTHORIZED BY THE
AGREEMENT AND ANY EXHIBITS THERETO. 
 Dated:
                            ,
             
  

	
	 PARTICIPANT

	
	  

	 (Signature)

	
	  

	 (Please Print Name)

	
	  

	 (Spouse’s Signature, if any)

	
	  

	 (Please Print Spouse’s Name)

Instructions to Participant: Please do not fill in any blanks other than the signature line. The purpose of this Stock
Power and Assignment is to enable the Company to acquire the shares and to exercise its “Right of First Refusal” set forth in the Stock Option Agreement and Notice of Stock Option Exercise without requiring additional signatures on the
part of the Participant or Participant’s Spouse. 

 EXHIBIT 2 

SPOUSE CONSENT 

 Spouse Consent 

The undersigned spouse of
                                         
    (the “Participant”) has read, understands, and hereby approves the Stock Option Agreement between Participant and the Company (the “Agreement”) and the Notice of Stock Option Exercise
(the “Notice”). In consideration of the Company’s granting my spouse the right to purchase the Shares as set forth in the Agreement and Notice, the undersigned hereby agrees to be irrevocably bound by the Agreement and
Notice and further agrees that any community property interest I may have in the Shares shall similarly be bound by the Agreement and Notice. The undersigned hereby appoints Participant as my attorney-in-fact with respect to any amendment or
exercise of any rights under the Agreement or Notice. 
 Date:
                                     

 

			
		 	  

		 	 Print Name of Participant’s Spouse

		
		 	  

		 	 Signature of Participant’s Spouse

		
	 Address:    
	 	  

		
		 	  

 EXHIBIT B-1 

FORCE10 NETWORKS, INC. 

2007 EQUITY INCENTIVE PLAN 

RESTRICTED STOCK PURCHASE AGREEMENT 

THIS AGREEMENT is made between
                                         
    (the “Participant”) and Force10 Networks, Inc. (the “Company”) as of
                            ,         . 

Unless otherwise defined herein, the terms defined in the 2007 Equity Incentive Plan shall have the same defined meanings in this Agreement. 

RECITALS 

A.        Pursuant to the exercise of the option granted to Participant under the Plan and
pursuant to the Stock Option Agreement dated                         ,          by and
between the Company and Participant with respect to such grant (the “Option”), which Plan and Option Agreement are hereby incorporated by reference, Participant has elected to purchase
                 of those shares of Common Stock which have not become vested under the vesting schedule set forth in the Stock Option Agreement (“Unvested
Shares”). The Unvested Shares and the shares subject to the Stock Option Agreement which have become vested are sometimes collectively referred to herein as the “Shares.” 

B.        As required by the Stock Option Agreement, as a condition to Participant’s
election to exercise the option, Participant must execute this Agreement, which sets forth the rights and obligations of the parties with respect to Shares acquired upon exercise of the Option. 

1.       Repurchase Option. 

 (a)       If Participant’s status as a Service Provider is terminated for
any reason, including for Cause, death, and Disability, the Company shall have the right and option to purchase from Participant, or Participant’s personal representative, as the case may be, all of the Participant’s Unvested Shares as of
the date of such termination at the price paid by the Participant for such Shares (the “Repurchase Option”). 

 (b)       Upon the occurrence of such termination, the Company may exercise its
Repurchase Option by delivering personally or by registered mail, to Participant (or his transferee or legal representative, as the case may be), within three months of the termination, a notice in writing indicating the Company’s intention to
exercise the Repurchase Option and setting forth a date for closing not later than thirty (30) days from the mailing of such notice. The closing shall take place at the Company’s office. At the closing, the holder of the certificates for
the Unvested Shares being transferred shall deliver the stock certificate or certificates evidencing the Unvested Shares, and the Company shall deliver the purchase price therefore. 

 (c)       At its option, the Company may elect to make payment for the Unvested
Shares to a bank selected by the Company. The Company shall avail itself of this option by a notice in writing to Participant stating the name and address of the bank, date of closing, and waiving the closing at the Company’s office.

  (d)       If the Company does not elect to exercise the Repurchase
Option conferred above by giving the requisite notice within ninety (90) days following the termination, the Repurchase Option shall terminate. 

  (e)       The Repurchase Option
shall terminate in accordance with the vesting schedule contained in Participant’s Notice of Stock Option Grant. 

2.       Transferability of the Shares; Escrow. 

 (a)       Participant hereby authorizes and directs the Secretary of the
Company, or such other person designated by the Company, to transfer the Unvested Shares as to which the Repurchase Option has been exercised from Participant to the Company. 

 (b)       To insure the availability for delivery of Participant’s Unvested
Shares upon repurchase by the Company pursuant to the Repurchase Option under Section 1, Participant hereby appoints the Secretary, or any other person designated by the Company as escrow agent, as its attorney-in-fact to sell, assign and
transfer unto the Company, such Unvested Shares, if any, repurchased by the Company pursuant to the Repurchase Option and shall, upon execution of this Agreement, deliver and deposit with the Secretary of the Company, or such other person designated
by the Company, the share certificates representing the Unvested Shares, together with the stock assignment duly endorsed in blank, attached hereto as Exhibit B-2. The Unvested Shares and stock assignment shall be held by the secretary in
escrow, pursuant to the Joint Escrow Instructions of the Company and Participant attached as Exhibit B-3 hereto, until the Company exercises its Repurchase Option, until such Unvested Shares are vested, or until such time as this Agreement no
longer is in effect. As a further condition to the Company’s obligations under this Agreement, the spouse of the Participant, if any, shall execute and deliver to the Company the Consent of Spouse attached hereto as Exhibit B-4. Upon
vesting of the Unvested Shares, the escrow agent shall promptly deliver to the Participant the certificate or certificates representing such Shares in the escrow agent’s possession belonging to the Participant, and the escrow agent shall be
discharged of all further obligations hereunder; provided, however, that the escrow agent shall nevertheless retain such certificate or certificates as escrow agent if so required pursuant to other restrictions imposed pursuant to this Agreement.

  (c)       The Company, or its designee, shall not be liable for any
act it may do or omit to do with respect to holding the Shares in escrow and while acting in good faith and in the exercise of its judgment. 

 (d)       Transfer or sale of the Shares is subject to restrictions on transfer
imposed by any applicable state and federal securities laws. Any transferee shall hold such Shares subject to all the provisions hereof and the Exercise Notice executed by the Participant with respect to any Unvested Shares purchased by Participant
and shall acknowledge the same by signing a copy of this Agreement. 

3.       Ownership, Voting Rights, Duties.    This
Agreement shall not affect in any way the ownership, voting rights or other rights or duties of Participant, except as specifically provided herein. 

4.       Legends.  The share certificate evidencing the Shares issued
hereunder shall be endorsed with the following legend (in addition to any legend required under applicable federal and state securities laws): 

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS UPON TRANSFER AND RIGHTS OF REPURCHASE AS
SET FORTH IN AN AGREEMENT BETWEEN THE COMPANY AND THE STOCKHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY. 

5.       Adjustment for Stock Split.  All references to the number of
Shares and the purchase price of the Shares in this Agreement shall be appropriately adjusted to reflect any stock split, stock dividend or other change in the Shares which may be made by the Company pursuant to Section 2.2 of the Plan after
the date of this Agreement. 
  

 2 

6.       Notices.  Notices required hereunder shall be given in person
or by registered mail to the address of Participant shown on the records of the Company, and to the Company at their respective principal executive offices. 

7.       Survival of Terms.  This Agreement shall apply to and bind
Participant and the Company and their respective permitted assignees and transferees, heirs, legatees, executors, administrators and legal successors. 

8.       Section 83(b) Election.  Participant hereby
acknowledges that he or she has been informed that, with respect to the exercise of an Option for Unvested Shares, an election (the “Election”) may be filed by the Participant with the Internal Revenue Service, within 30 days of the
purchase of the exercised Shares, electing pursuant to Section 83(b) of the Code to be taxed currently on any difference between the purchase price of the exercised Shares and their Fair Market Value on the date of purchase. In the case of a
Nonstatutory Stock Option, this will result in a recognition of taxable income to the Participant on the date of exercise, measured by the excess, if any, of the Fair Market Value of the exercised Shares, at the time the Option is exercised over the
purchase price for the exercised Shares. Absent such an Election, taxable income will be measured and recognized by Participant at the time or times on which the Company’s Repurchase Option lapses. In the case of an Incentive Stock Option, such
an Election will result in a recognition of income to the Participant for alternative minimum tax purposes on the date of exercise, measured by the excess, if any, of the Fair Market Value of the exercised Shares, at the time the option is
exercised, over the purchase price for the exercised Shares. Absent such an Election, alternative minimum taxable income will be measured and recognized by Participant at the time or times on which the Company’s Repurchase Option lapses.
Participant is strongly encouraged to seek the advice of his or her own tax consultants in connection with the purchase of the Shares and the advisability of filing of the Election under Section 83(b) of the Code. A form of Election under
Section 83(b) is attached hereto as Exhibit B-5 for reference. 
 PARTICIPANT ACKNOWLEDGES THAT IT IS
PARTICIPANT’S SOLE RESPONSIBILITY AND NOT THE COMPANY’S TO FILE TIMELY THE ELECTION UNDER SECTION 83(b) OF THE CODE, EVEN IF PARTICIPANT REQUESTS THE COMPANY OR ITS REPRESENTATIVE TO MAKE THIS FILING ON PARTICIPANT’S BEHALF.

 9.       Representations.  Participant has reviewed with
his or her own tax advisors the federal, state, local and foreign tax consequences of this investment and the transactions contemplated by this Agreement. Participant is relying solely on such advisors and not on any statements or representations of
the Company or any of its agents. Participant understands that he or she (and not the Company) shall be responsible for his or her own tax liability that may arise as a result of this investment or the transactions contemplated by this Agreement.

 10.     Governing Law.  This Agreement shall be governed by the
internal substantive laws, but not the choice of law rules, of California. Participant represents that he or she has read this Agreement and is familiar with its terms and provisions. Participant hereby agrees to accept as binding, conclusive and
final all decisions or interpretations of the Board upon any questions arising under this Agreement. 
  

 3 

 IN WITNESS WHEREOF, this Agreement is deemed made as of the date first set forth above.

  

					
	PARTICIPANT	 		 	FORCE10 NETWORKS, INC.
			
	  
	 		 	  

	 Signature
	 		 	 By

			
	  
	 		 	  

	 Name
	 		 	 Its

			
	  
	 		 	 Address:

	 Residence Address
	 		 	
	  
	 		 	 350 Holger Way

San Jose, CA 95134

			
	  
	 		 	
	 Dated
	 		 	

  

 4 

 EXHIBIT B-2 

ASSIGNMENT SEPARATE FROM CERTIFICATE 

FOR VALUE RECEIVED I,
                                        , hereby
sell, assign and transfer unto Force10 Networks, Inc.
                                        
(                    ) shares of the Common Stock of Force10 Networks, Inc. standing in my name of the books of said corporation represented by
Certificate No.          herewith and do hereby irrevocably constitute and appoint                      to
transfer the said stock on the books of the within named corporation with full power of substitution in the premises. 
 This
Stock Assignment may be used only in accordance with the Restricted Stock Purchase Agreement between Force10 Networks, Inc. and the undersigned dated
                    ,         . 

 

							
	 Dated:
                            ,         
	 		 	 Signature:
	 	  

INSTRUCTIONS: Please do not fill in any blanks other than the signature line. The purpose of this assignment is to enable the Company to exercise its
“repurchase option,” as set forth in the Agreement, without requiring additional signatures on the part of the Participant. 

 EXHIBIT B-3 

JOINT ESCROW INSTRUCTIONS 

Corporate Secretary 
 Force10 Networks, Inc.

 350 Holger Way 
 San Jose, CA 95134

 Dear                     : 

As Escrow Agent for both Force10 Networks, Inc. (the “Company”), and the undersigned purchaser of stock of the Company (the
“Participant”), you are hereby authorized and directed to hold the documents delivered to you pursuant to the terms of that certain Restricted Stock Purchase Agreement (the “Agreement”) between the Company and the undersigned, in
accordance with the following instructions: 
 1.    In the event the Company and/or any assignee of the
Company (referred to collectively for convenience herein as the “Company”) exercises the Company’s Repurchase Option set forth in the Agreement, the Company shall give to Participant and you a written notice specifying the number of
shares of stock to be purchased, the purchase price, and the time for a closing hereunder at the principal office of the Company. Participant and the Company hereby irrevocably authorize and direct you to close the transaction contemplated by such
notice in accordance with the terms of said notice. 
 2.    At the closing, you are directed (a) to
date the stock assignments necessary for the transfer in question, (b) to fill in the number of shares being transferred, and (c) to deliver the stock assignments, together with the certificate evidencing the shares of stock to be
transferred, to the Company or its assignee, against the simultaneous delivery to you of the purchase price (by cash, a check, or some combination thereof) for the number of shares of stock being purchased pursuant to the exercise of the
Company’s Repurchase Option. 
 3.    Participant irrevocably authorizes the Company to deposit with
you any certificates evidencing shares of stock to be held by you hereunder and any additions and substitutions to said shares as defined in the Agreement. Participant does hereby irrevocably constitute and appoint you as Participant’s
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 securities negotiable and to complete any transaction herein contemplated, including but not
limited to the filing with any applicable state blue sky authority of any required applications for consent to, or notice of transfer of, the securities. Subject to the provisions of this paragraph 3, Participant shall exercise all rights and
privileges of a stockholder of the Company while the stock is held by you. 
 4.    Upon written request of
the Participant, but no more than once per calendar year, unless the Company’s Repurchase Option has been exercised, you will deliver to Participant a certificate or certificates representing so many shares of stock as are not then subject to
the Company’s Repurchase Option. Within 120 days after cessation of Participant’s continuous employment by or services to the Company, or any parent or subsidiary of the Company, you will deliver to Participant a certificate or
certificates representing the aggregate number of shares held or issued pursuant to the Agreement and not purchased by the Company or its assignees pursuant to exercise of the Company’s Repurchase Option. 

5.    If at the time of termination of this escrow you should have in your possession any documents, securities, or
other property belonging to Participant, you shall deliver all of the same to Participant and shall be discharged of all further obligations hereunder. 

 6.    Your duties hereunder may be altered, amended, modified or revoked
only by a writing signed by all of the parties hereto. 
 7.    You 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 you to be genuine and to have been signed or presented by the proper
party or parties. You shall not be personally liable for any act you may do or omit to do hereunder as Escrow Agent or as attorney-in-fact for Participant while acting in good faith, and any act done or omitted by you pursuant to the advice of your
own attorneys shall be conclusive evidence of such good faith. 
 8.    You are hereby expressly authorized
to disregard any and all warnings given by any of the parties hereto or by any other person or corporation, excepting only orders or process of courts of law and are hereby expressly authorized to comply with and obey orders, judgments or decrees of
any court. In case you obey or comply with any such order, judgment or decree, you shall not be liable to any of the parties hereto or to any other person, firm or 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. 

9.    You shall not be liable in any respect on account of the identity, authorities or rights of the parties
executing or delivering or purporting to execute or deliver the Agreement or any documents or papers deposited or called for hereunder. 

10.  You shall not be liable for the outlawing of any rights under the Statute of Limitations with respect to these Joint
Escrow Instructions or any documents deposited with you. 
 11.  You shall be entitled to employ such legal counsel
and other experts as you may deem necessary properly to advise you in connection with your obligations hereunder, may rely upon the advice of such counsel, and may pay such counsel reasonable compensation therefor. 

12.  Your responsibilities as Escrow Agent hereunder shall terminate if you shall cease to be an officer or agent of the
Company or if you shall resign by written notice to each party. In the event of any such termination, the Company shall appoint a successor Escrow Agent. 

13.  If you reasonably require other or further instruments in connection with these Joint Escrow Instructions or obligations
in respect hereto, the necessary parties hereto shall join in furnishing such instruments. 
 14.  It is understood
and agreed that should any dispute arise with respect to the delivery and/or ownership or right of possession of the securities held by you hereunder, you are authorized and directed to retain in your possession without liability to anyone all or
any part of said securities until such disputes 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 you shall be under no duty whatsoever to institute or defend any such proceedings. 

15.  Any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given upon personal
delivery or upon deposit in the United States Post Office, by registered or certified mail with postage and fees prepaid, addressed to each of the other parties thereunto entitled at the following addresses or at such other addresses as a party may
designate by ten days’ advance written notice to each of the other parties hereto. 
  

 2 

 16.  By signing these Joint Escrow Instructions, you become a party hereto only
for the purpose of said Joint Escrow Instructions; you do not become a party to the Agreement. 
 17.  This instrument
shall be binding upon and inure to the benefit of the parties hereto, and their respective successors and permitted assigns. 

18.  These Joint Escrow Instructions shall be governed by the internal substantive laws, but not the choice of law rules, of
California. 
  

					
	PARTICIPANT	 		 	FORCE10 NETWORKS, INC.
			
	  
	 		 	  

	 Signature
	 		 	 By

			
	  
	 		 	  

	 Name
	 		 	 Its

			
	  
	 		 	 Address:

	 Residence Address
	 		 	
	  
	 		 	 350 Holger Way

San Jose, CA 95134

			
	  
	 		 	
	 Dated
	 		 	
			
	ESCROW AGENT	 		 	
			
	  
	 		 	
	 Corporate Secretary
	 		 	

  

 3 

 EXHIBIT B-4 

CONSENT OF SPOUSE 

I,
                                        , spouse
of                                 , have read and approve the foregoing Restricted Stock
Purchase Agreement (the “Agreement”). In consideration of granting of the right to my spouse to purchase shares of
                                         
               , as set forth in the Agreement, I hereby appoint my spouse as my attorney-in-fact in respect to the exercise of any rights under the Agreement and agree to be
bound by the provisions of the Agreement insofar as I may have any rights in said Agreement or any shares issued pursuant thereto under the community property laws or similar laws relating to marital property in effect in the state of our residence
as of the date of the signing of the foregoing Agreement. 
  

							
	 Dated:
                            ,         
	 		 	 Signature:
	 	  

 EXHIBIT B-5 

ELECTION UNDER SECTION 83(b) 

OF THE INTERNAL REVENUE CODE OF 1986 

The undersigned taxpayer hereby elects, pursuant to Sections 55 and 83(b) of the Internal Revenue Code of 1986, as amended, to include in
taxpayer’s gross income or alternative minimum taxable income, as the case may be, for the current taxable year the amount of any compensation taxable to taxpayer in connection with taxpayer’s receipt of the property described below:

  

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

NAME:                      
              TAXPAYER:                          
      SPOUSE: 
 ADDRESS: 

IDENTIFICATION NO.: 
 TAXABLE YEAR: 

 

	2.	 The property with respect to which the election is made is described as follows: 

                    
 shares (the “Shares”) of the Common Stock of Force10 Networks, Inc. (the “Company”). 
  

	3.	 The date on which the property was transferred is:
                            ,         . 

 

	4.	 The property is subject to the following restrictions: 

The Shares may not be transferred and are subject to forfeiture under the terms of an agreement between the taxpayer and
the Company. These restrictions lapse upon the satisfaction of certain conditions contained in such agreement. 
  

	5.	 The fair market value at the time of transfer, determined without regard to any restriction other than a restriction which by its terms will never
lapse, of such property is: $                            . 

 

	6.	 The amount (if any) paid for such property is:
$                            . 

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

The undersigned understands that the foregoing election may not be revoked except with the consent of the Commissioner.

  

			
	 Dated:
                                         
           ,         
	 	  

		 	 Taxpayer

 The undersigned spouse
of taxpayer joins in this election. 
  

			
	 Dated:
                                         
           ,         
	 	  

		 	 Spouse of Taxpayer

 EXPLANATION OF U.S. FEDERAL
INCOME TAX CONSEQUENCES 
 (Current as of July 2009) 

PURPOSE OF THIS EXPLANATION 

YOU MAY SUFFER ADVERSE TAX CONSEQUENCES AS A RESULT OF YOUR PURCHASE OR DISPOSITION OF THE PURCHASED SHARES. YOU MAY NOT RELY ON THE
COMPANY FOR ANY TAX ADVICE. Set forth below is a brief summary as of July 2009 of some of the U.S. Federal tax consequences of exercise of the option and disposition of the Purchased Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS
AND REGULATIONS ARE SUBJECT TO CHANGE. YOU SHOULD CONSULT WITH YOUR OWN TAX ADVISER BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE PURCHASED SHARES. 

For a number of reasons, this explanation is no substitute for personal tax advice: 

 

	•	 	 To make the explanation short and readable, only the highlights are covered. Some tax rules are not addressed, even though they may be important in
particular cases. 

  

	•	 	 While the summary attempts to deal with the most common situations, your own tax situation may well be different from the norm.

  

	•	 	 State and foreign income taxes are not addressed at all, even though they could have a significant impact on your tax planning. Likewise, federal
gift and estate taxes and state inheritance taxes are not discussed. 

  

	•	 	 Tax planning involving incentive stock options is exceedingly complex, in part because of the possible application of the alternative minimum tax.

  

	•	 	 This explanation assumes that your option is not subject to section 409A of the Internal Revenue Code. However, the Company cannot be certain that
section 409A is inapplicable to your option. (Please refer to the last segment of this summary for more information about section 409A.) 

  

	•	 	 The tax rules change often, and the Company is not responsible for updating this summary. (Please refer to the date at the top of this page.)

 FOR THESE REASONS, THE
COMPANY STRONGLY ENCOURAGES YOU TO CONSULT YOUR OWN TAX ADVISER BEFORE
EXERCISING YOUR OPTION. 
 LIMIT ON ISO
TREATMENT 
 The Notice of Stock Option Grant indicates whether your option is a nonstatutory stock option
(NSO) or an incentive stock option (ISO). The favorable tax treatment for ISOs is limited, regardless of what the Notice of Stock Option Grant indicates. Of the options otherwise eligible 

 
for ISO treatment that become exercisable in any calendar year, only options covering the first $100,000 of stock are eligible for ISO treatment. The excess over $100,000 automatically receives
NSO treatment. For this purpose, stock is valued at the time of grant. This means that the value is generally equal to the exercise price. 

For example, assume that you hold an option to buy 60,000 shares for $8 per share. Assume further that the entire option becomes
exercisable in four equal annual installments. Only the first 50,000 shares qualify for ISO treatment. (12,500 times $8 equals $100,000.) The remaining 10,000 shares will be treated as if they had been acquired by exercising an NSO. This is true
regardless of when the option is actually exercised; what matters is when it first could have been exercised. 

EXERCISE OF NSO 

If you are exercising an NSO, you will be taxed now. You will recognize ordinary income in an amount equal to the excess of (a) the
fair market value of the Purchased Shares on the date of exercise over (b) the exercise price you are paying. If you are an employee or former employee of the Company, this amount is subject to withholding for income and payroll taxes. Your tax
basis in the Purchased Shares (to calculate capital gain when you sell the shares) is equal to their fair market value on the date of exercise. 

DISPOSITION OF NSO SHARES 

When you dispose of the Purchased Shares, you will recognize a capital gain equal to the excess of (a) the sale proceeds over
(b) your tax basis in the Purchased Shares. As described above, your tax basis in the Purchased Shares is equal to their fair market value on the date of exercise. If the sale proceeds are less than your tax basis, you will recognize a capital
loss. The capital gain or loss will be long-term if you held the Purchased Shares for more than 12 months. The holding period starts when you exercise your NSO. 

EXERCISE OF ISO 

If the Option qualifies as an ISO, there will be no regular U.S. Federal income tax liability or California income tax liability upon the
exercise of the Option, although the excess, if any, of the fair market value of the Purchased Shares on the date of exercise over the exercise price will be treated as a tax preference item for U.S. Federal alternative minimum tax purposes and may
subject you to the alternative minimum tax in the year of exercise. 
 DISPOSITION OF ISO SHARES

 If the Purchased Shares are held for more than twelve (12) months after the date of the transfer of the Purchased
Shares pursuant to the exercise of an ISO and are disposed of more than two (2) years after the Date of Grant, any gain realized on disposition of the Purchased Shares will be treated as long term capital gain for U.S. Federal and California
income tax purposes. If vested Purchased Shares purchased under an ISO are disposed of within the applicable one (1) year or two (2) year period, any gain realized on such disposition will be treated as compensation income

 
(taxable at ordinary income rates in the year of the disposition) to the extent of the excess, if any, of the fair market value of the Purchased Shares on the date of exercise over the exercise
price. To the extent the Purchased Shares were exercised prior to vesting coincident with the filing of an 83(b) Election described below, the amount taxed because of a disqualifying disposition will be based upon the excess, if any, of the fair
market value on the date of vesting over the exercise price. The Company may be required to withhold from your compensation or collect from you and pay to the applicable taxing authorities an amount equal to a percentage of this compensation
income. 
 NOTICE OF DISQUALIFYING DISPOSITION OF ISO
SHARES. 
 If the option is an ISO, and if you sell or otherwise dispose of any of the Purchased Shares
acquired pursuant to the ISO on or before the later of (a) the date two (2) years after the Date of Grant, and (b) the date one (1) year after transfer of such Purchased Shares to you upon exercise of the option, you must
immediately notify the Company in writing of such disposition. You may be subject to income tax withholding by the Company on the compensation income recognized by you from the early disposition by payment in cash or out of the current wages or
other compensation payable to you. 
 SECTION
83(B) ELECTION FOR UNVESTED
SHARES. 
 With respect to
unvested Purchased Shares that are subject to the Repurchase Option, unless an election is filed by you with the Internal Revenue Service (and, if necessary, the proper state taxing authorities), within 30 days after the purchase of the
unvested Purchased Shares electing, pursuant to Section 83(b) of the Code (and similar state tax provisions, if applicable), to be taxed currently on any difference between the exercise price of the unvested Purchased Shares and their fair
market value on the date of purchase, there may be a recognition of taxable income (including, where applicable, alternative minimum taxable income) to you, measured by the excess, if any, of the fair market value of the unvested Purchased Shares at
the time they cease to be unvested Purchased Shares, over the exercise price of the unvested Purchased Shares. If you desire to file such an election, a form of 83(b) election is attached to the Exercise Agreement as Exhibit B-5. BY
PROVIDING THE FORM OF ELECTION, THE COMPANY DOES NOT THEREBY UNDERTAKE TO FILE THE ELECTION FOR YOU, WHICH OBLIGATION TO FILE SHALL REMAIN SOLELY WITH YOU. 

SECTION 409A OF THE INTERNAL REVENUE CODE 

The preceding summary assumes that section 409A of the Internal Revenue Code does not apply to your option. In general, your option is
exempt from Section 409A if the exercise price per share is at least equal to the fair market value per share of the Company’s Common Stock at the time the option was granted by the Board of Directors. Since shares of Common Stock are not
traded on an established securities market, the determination of their fair market value generally is made by the Board of Directors or by an independent appraisal firm retained by the Company. In either case, there is no guarantee that the Internal
Revenue Service will agree with the valuation. Section 409A would require additional taxes to be incurred and would subject your option to additional restrictions. 

 FORCE10 NETWORKS, INC. 2007
EQUITY INCENTIVE PLAN 
 USA NOTICE OF
STOCK OPTION EXERCISE 
 You must sign this Notice on Page 4 before
submitting it to the Company. 
 PARTICIPANT INFORMATION: 

 

							
	 Name:
	 	  
	  		  	 Social Security Number:
                                

				
	 Address:
	 	  
	  		  	
Employee Number:                          
               

				
		 	  
	  		  	

 OPTION INFORMATION: 

 

			
	 Date of Grant:
                                Grant Number:
                    
	  	         Type of Stock Option:

		
	 Exercise Price per Share:
$                    
	  	          ̈  Nonstatutory (NSO)

		
	 Total number of shares of Common Stock of Force10 Networks, Inc.

(the “Company”) covered by Option:
                                
	  	          ̈  Incentive (ISO)

EXERCISE INFORMATION: 

Number of shares of Common Stock of the Company for which Option is being exercised now: 

                    . (These
shares are referred to below as the “Purchased Shares.”) 
 Total Exercise Price for the Purchased Shares:
$                     

Form of payment enclosed [check all that apply]: 

 

	 ̈	 Check for $                , payable to “Force10
Networks, Inc.” 

  

	 ̈	 Certificate(s) for                     
shares of Common Stock of the Company that I have owned for at least six months. (These shares will be valued as of the date this notice is received by the Company.) 

Name(s) in which the Purchased Shares should be registered [please review the attached explanation of the available forms of
ownership, and then check one box]: 
  

							
	  ̈
	 	 In my name only
	 		  	
				
	  ̈
	 	 In the names of my spouse and myself as

community property
	 		  	 My spouse’s name (if applicable):

				
	  ̈
	 	 In the names of my spouse and myself

as joint tenants with the right of survivorship
	 		  	  

 

				
	  ̈
	 	 In the name of an eligible revocable trust 

[requires Stock Transfer Agreement] 
	 		  	 Full legal name of revocable trust:

 
  

 

			
	 The certificate for the Purchased Shares should

be sent to the following address:
	 		  	  

 
  

 REPRESENTATIONS AND ACKNOWLEDGMENTS OF
THE PARTICIPANT: 
  

	1.	 I represent and warrant to the Company that I am acquiring and will hold the Purchased Shares for investment for my account only, and not with a
view to, or for resale in connection with, any “distribution” of the Purchased Shares within the meaning of the Securities Act of 1933, as amended (the “Securities Act”). 

 

	2.	 I understand that the Purchased Shares have not been registered under the Securities Act by reason of a specific exemption therefrom and that the
Purchased Shares must be held indefinitely, unless they are subsequently registered under the Securities Act or I obtain an opinion of counsel (in form and substance satisfactory to the Company and its counsel) that registration is not required.

  

	3.	 I acknowledge that the Company is under no obligation to register the Purchased Shares. 

 

	4.	 I am aware of the adoption of Rule 144 by the Securities and Exchange Commission under the Securities Act, which permits limited public resales of
securities acquired in a non-public offering, subject to the satisfaction of certain conditions. These conditions include (without limitation) that certain current public information about the issuer is available, that the resale occurs only after
the holding period required by Rule 144 has been satisfied, that the sale occurs through an unsolicited “broker’s transaction” and that the amount of securities being sold during any three-month period does not exceed specified
limitations. I understand that the conditions for resale set forth in Rule 144 have not been satisfied and that the Company has no plans to satisfy these conditions in the foreseeable future. 

 

	5.	 I will not sell, transfer or otherwise dispose of the Purchased Shares in violation of the Securities Act, the Securities Exchange Act of 1934, or
the rules promulgated thereunder, including Rule 144 under the Securities Act. 

  

	6.	 I acknowledge that I have received and had access to such information as I consider necessary or appropriate for deciding whether to invest in the
Purchased Shares and that I had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the issuance of the Purchased Shares. 

 

	7.	 I am aware that my investment in the Company is a speculative investment that has limited liquidity and is subject to the risk of complete loss. I
am able, without impairing my financial condition, to hold the Purchased Shares for an indefinite period and to suffer a complete loss of my investment in the Purchased Shares. 

 

	8.	 I acknowledge that the Purchased Shares remain subject to the Company’s Right of First Refusal and the market stand-off (sometimes referred to
as the “lock-up”), all in accordance with the applicable Notice of Stock Option Grant and Stock Option Agreement, and that any certificates evidence the Shares shall bear the legends set forth in the Stock Option Agreement as well as the
following legend: 

 “THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A 180 DAY
MARKET STANDOFF RESTRICTION AS SET FORTH IN A CERTAIN AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. AS A RESULT OF SUCH AGREEMENT, THESE SHARES MAY NOT BE
TRADED PRIOR TO 180 DAYS AFTER THE EFFECTIVE DATE OF ANY PUBLIC OFFERING OF THE COMMON STOCK OF THE ISSUER HEREOF. SUCH RESTRICTION IS BINDING ON TRANSFEREES OF THESE SHARES.” 

 

	9.	 As security for my faithful performance of this Notice of Stock Option Exercise and the Stock Option Agreement, I agree, immediately upon receipt of
the stock certificate(s) evidencing the 

  

 2 

	 	 
Purchased Shares, to deliver such certificate(s), together with the Stock Powers executed by me and by my spouse, if any (with the date and number of Shares left blank), to the Secretary of the
Company or other designee of the Company (the “Escrow Holder”), who is hereby appointed to hold such certificate(s) and Stock Powers in escrow and to take all such actions and to effectuate all such transfers and/or releases
of such Purchased Shares as are in accordance with the terms of this Notice of Stock Option Exercise and the Stock Option Agreement. I agree that Escrow Holder will not be liable to any party to this Notice of Stock Option Exercise or the Stock
Option Agreement (or to any other party) for any actions or omissions unless Escrow Holder is grossly negligent or intentionally fraudulent in carrying out the duties of Escrow Holder under this Notice of Stock Option Exercise or the Stock Option
Agreement. Escrow Holder may rely upon any letter, notice or other document executed with any signature purported to be genuine and may rely on the advice of counsel and obey any order of any court with respect to the transactions contemplated by
this Notice of Stock Option Exercise or the Stock Option Agreement. The Purchased Shares will be released from escrow upon termination of the Right of First Refusal. 

 

	10.	 I will make no disposition of the Purchased Shares (other than as permitted by this Notice of Stock Option Exercise or the Stock Option Agreement)
unless and until: 

  

	 	(a)	 I shall have notified the Company of the proposed disposition and provided a written summary of the terms and conditions of the proposed
disposition; 

  

	 	(b)	 I shall have complied with all requirements of this Notice of Stock Option Exercise and the Stock Option Agreement applicable to the disposition of
the Purchased Shares; 

  

	 	(c)	 I shall have provided the Company with written assurances, in form and substance satisfactory to counsel for the Company, that (i) the proposed
disposition does not require registration of the Purchased Shares under the Securities Act or (ii) all appropriate actions necessary for compliance with the registration requirements of the Securities Act or of any exemption from registration
available under the Securities Act (including Rule 144) have been taken; 

  

	 	(d)	 I shall have provided the Company with written assurances, in form and substance satisfactory to the Company, that the proposed disposition will not
result in the contravention of any transfer restrictions applicable to the Purchased Shares pursuant to the laws and provisions referred to in paragraph 5 hereof; and 

 

	 	(e)	 Each person (other than the Company) to whom the Purchased Shares are transferred by means of one of the permitted transfers specified in this
Notice of Stock Option Exercise or the Stock Option Agreement must, as a condition precedent to the validity of such transfer, acknowledge in writing to the Company that such person is bound by the provisions of this Notice of Stock Option Exercise
and Stock Option Agreement and that the transferred Shares are subject to (i) as applicable, the Company’s Right of First Refusal and (ii) the market stand-off provisions, to the same extent such Shares would be so subject if retained
by the Participant. 

  

	11.	 I shall not transfer, assign, grant a lien or security interest in, pledge, hypothecate, encumber or otherwise dispose of any of the Purchased
Shares which are subject to the Company’s Right of First Refusal described below, except as permitted by this Notice of Stock Option Exercise or the Stock Option Agreement. 

 

	12.	 I agree that, to ensure compliance with the restrictions imposed by this Notice of Stock Option Exercise and the Stock Option Agreement, the Company
may issue appropriate “stop-transfer” instructions to its transfer agent, if any, and if the Company transfers its own securities, it may make appropriate notations to the same effect in its own records. 

 

 3 

	13.	 I acknowledge that the Company will not be required (i) to transfer on its books any Purchased Shares that have been sold or otherwise
transferred in violation of any of the provisions of this Notice of Stock Option Exercise and the Stock Option Agreement or (ii) to treat as owner of such Purchased Shares, or to accord the right to vote or pay dividends to any purchaser or
other transferee to whom such Purchased Shares have been so transferred. 

  

	14.	 I acknowledge that the Company may assign any of its rights and obligations under this Notice of Stock Option Exercise and the Stock Option
Agreement, including its rights to purchase Shares under the Right of First Refusal. No other party to this Notice of Stock Option Exercise and the Stock Option Agreement may assign, whether voluntarily or by operation of law, any of its rights and
obligations under this Notice of Stock Option Exercise and the Stock Option Agreement, except with the prior written consent of the Company. This Notice of Stock Option Exercise and the Stock Option Agreement shall be binding upon and inure to the
benefit of the successors and assigns of the Company. Subject to the restrictions on transfer herein set forth, this Exercise this Notice of Stock Option Exercise and the Stock Option Agreement will be binding upon Participant and Participant’s
heirs, executors, administrators, legal representatives, successors and assigns. 

  

	15.	 I acknowledge that I am acquiring the Purchased Shares subject to all other terms of the Notice of Stock Option Grant and Stock Option Agreement.

  

	16.	 I acknowledge that the Company has encouraged me to consult my own adviser to determine the form of ownership that is appropriate for me. In the
event that I choose to transfer my Purchased Shares to a trust, I agree to sign a Stock Transfer Agreement. In the event that I choose to transfer my Purchased Shares to a trust that does not satisfy the requirements described in the attached
explanation (i.e., a trust that is not an eligible revocable trust), I also acknowledge that the transfer will be treated as a “disposition” for tax purposes. As a result, the favorable ISO tax treatment will be unavailable and other
unfavorable tax consequences may occur. 

  

	17.	 I acknowledge that I have received a copy of the Company’s explanation of the federal income tax consequences of an option exercise. I
acknowledge that the Company has encouraged me to consult my own adviser to determine the tax consequences of acquiring the Purchased Shares at this time. 

 

	18.	 I agree to seek the consent of my spouse to the extent required by the Company to enforce the foregoing. 

 

							
	PARTICIPANT	 	  	 	  	 	 
			
	  
	 		 	Date:                            
                            
	 (Signature)
	 		 		 	
			
	  
	 		 	
	 (Please print name)
	 		 	
				
	 Grant Number:
	 	  
	 		 	
				
	 Address:
	 	  
	 		 	
			
	  
	 		 	

  

	Exhibit 1:	Stock Power and Assignment Separate from Stock Certificate 

	Exhibit 2:	Spouse Consent 

  

 4 

 EXHIBIT 1 

STOCK POWER AND ASSIGNMENT 

SEPARATE FROM STOCK CERTIFICATE 

 Stock Power and Assignment 

Separate from Stock Certificate 

FOR VALUE RECEIVED and pursuant to that certain Notice of Stock Option Exercise dated as of
            ,         , [TO BE COMPLETED AT THE TIME OF EXERCISE] (the
“Agreement”), the undersigned hereby sells, assigns and transfers unto                     ,
             shares of the Common Stock of Force10 Networks, Inc., a Delaware corporation (the “Company”), standing in the undersigned’s name on the
books of the Company represented by Certificate No(s).          [TO BE COMPLETED AT THE TIME OF EXERCISE] delivered herewith, and does hereby irrevocably constitute and
appoint the Secretary of the Company as the undersigned’s attorney-in-fact, with full power of substitution, to transfer said stock on the books of the Company. THIS ASSIGNMENT MAY ONLY BE USED AS AUTHORIZED BY THE AGREEMENT AND ANY EXHIBITS
THERETO. 
 Dated:             ,
         

	
	 PARTICIPANT

	
	  

	 (Signature)

	
	  

	 (Please Print Name)

	
	  

	 (Spouse’s Signature, if any)

	
	  

	 (Please Print Spouse’s Name)

  

Instructions to Participant: Please do not fill in any blanks other than the signature line. The purpose of this Stock
Power and Assignment is to enable the Company to acquire the shares and to exercise its “Right of First Refusal” set forth in the Stock Option Agreement and Notice of Stock Option Exercise without requiring additional signatures on the
part of the Participant or Participant’s Spouse. 

 EXHIBIT 2 

SPOUSE CONSENT 

 Spouse Consent 

The undersigned spouse of
                     (the “Participant”) has read, understands, and hereby approves the Stock Option Agreement between
Participant and the Company (the “Agreement”) and the Notice of Stock Option Exercise (the “Notice”). In consideration of the Company’s granting my spouse the right to purchase the Shares as set
forth in the Agreement and Notice, the undersigned hereby agrees to be irrevocably bound by the Agreement and Notice and further agrees that any community property interest I may have in the Shares shall similarly be bound by the Agreement and
Notice. The undersigned hereby appoints Participant as my attorney-in-fact with respect to any amendment or exercise of any rights under the Agreement or Notice. 
  

							
	 Date:
                    
	 		 		 	
				
		 		 		 	  
 Print Name
of Participant’s Spouse

				
		 		 		 	  
 Signature of
Participant’s Spouse

				
		 	Address:	 		 	  

				
		 		 		 	  

 EXPLANATION OF U.S. FEDERAL
INCOME TAX CONSEQUENCES 
 (Current as of July 2009) 

PURPOSE OF THIS EXPLANATION 

YOU MAY SUFFER ADVERSE TAX CONSEQUENCES AS A RESULT OF YOUR PURCHASE OR DISPOSITION OF THE PURCHASED SHARES. YOU MAY NOT RELY ON THE
COMPANY FOR ANY TAX ADVICE. Set forth below is a brief summary as of July 2009 of some of the U.S. Federal tax consequences of exercise of the option and disposition of the Purchased Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS
AND REGULATIONS ARE SUBJECT TO CHANGE. YOU SHOULD CONSULT WITH YOUR OWN TAX ADVISER BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE PURCHASED SHARES. 

For a number of reasons, this explanation is no substitute for personal tax advice: 

 

	•	 	 To make the explanation short and readable, only the highlights are covered. Some tax rules are not addressed, even though they may be important in
particular cases. 

  

	•	 	 While the summary attempts to deal with the most common situations, your own tax situation may well be different from the norm.

  

	•	 	 State and foreign income taxes are not addressed at all, even though they could have a significant impact on your tax planning. Likewise, federal
gift and estate taxes and state inheritance taxes are not discussed. 

  

	•	 	 Tax planning involving incentive stock options is exceedingly complex, in part because of the possible application of the alternative minimum tax.

  

	•	 	 This explanation assumes that your option is not subject to section 409A of the Internal Revenue Code. However, the Company cannot be certain
that section 409A is inapplicable to your option. (Please refer to the last segment of this summary for more information about section 409A.) 

 

	•	 	 The tax rules change often, and the Company is not responsible for updating this summary. (Please refer to the date at the top of this page.)

 FOR THESE REASONS, THE COMPANY
STRONGLY ENCOURAGES YOU TO CONSULT YOUR OWN TAX ADVISER BEFORE EXERCISING
YOUR OPTION. 
 LIMIT ON ISO TREATMENT

 The Notice of Stock Option Grant indicates whether your option is a nonstatutory stock option (NSO) or an incentive stock
option (ISO). The favorable tax treatment for ISOs is limited, regardless of what the Notice of Stock Option Grant indicates. Of the options otherwise eligible 

 

 9 

 
for ISO treatment that become exercisable in any calendar year, only options covering the first $100,000 of stock are eligible for ISO treatment. The excess over $100,000 automatically receives
NSO treatment. For this purpose, stock is valued at the time of grant. This means that the value is generally equal to the exercise price. 

For example, assume that you hold an option to buy 60,000 shares for $8 per share. Assume further that the entire option becomes
exercisable in four equal annual installments. Only the first 50,000 shares qualify for ISO treatment. (12,500 times $8 equals $100,000.) The remaining 10,000 shares will be treated as if they had been acquired by exercising an NSO. This is true
regardless of when the option is actually exercised; what matters is when it first could have been exercised. 

EXERCISE OF NSO 

If you are exercising an NSO, you will be taxed now. You will recognize ordinary income in an amount equal to the excess of (a) the
fair market value of the Purchased Shares on the date of exercise over (b) the exercise price you are paying. If you are an employee or former employee of the Company, this amount is subject to withholding for income and payroll taxes. Your tax
basis in the Purchased Shares (to calculate capital gain when you sell the shares) is equal to their fair market value on the date of exercise. 

DISPOSITION OF NSO SHARES 

When you dispose of the Purchased Shares, you will recognize a capital gain equal to the excess of (a) the sale proceeds over
(b) your tax basis in the Purchased Shares. As described above, your tax basis in the Purchased Shares is equal to their fair market value on the date of exercise. If the sale proceeds are less than your tax basis, you will recognize a capital
loss. The capital gain or loss will be long-term if you held the Purchased Shares for more than 12 months. The holding period starts when you exercise your NSO. 

EXERCISE OF ISO 

If the Option qualifies as an ISO, there will be no regular U.S. Federal income tax liability or California income tax liability upon the
exercise of the Option, although the excess, if any, of the fair market value of the Purchased Shares on the date of exercise over the exercise price will be treated as a tax preference item for U.S. Federal alternative minimum tax purposes and may
subject you to the alternative minimum tax in the year of exercise. 
 DISPOSITION OF ISO SHARES

 If the Purchased Shares are held for more than twelve (12) months after the date of the transfer of the Purchased
Shares pursuant to the exercise of an ISO and are disposed of more than two (2) years after the Date of Grant, any gain realized on disposition of the Purchased Shares will be treated as long term capital gain for U.S. Federal and California
income tax purposes. If vested Purchased Shares purchased under an ISO are disposed of within the applicable one (1) year or two (2) year period, any gain realized on such disposition will be treated as compensation income

  

 10 

 
(taxable at ordinary income rates in the year of the disposition) to the extent of the excess, if any, of the fair market value of the Purchased Shares on the date of exercise over the exercise
price. To the extent the Purchased Shares were exercised prior to vesting coincident with the filing of an 83(b) Election described below, the amount taxed because of a disqualifying disposition will be based upon the excess, if any, of the fair
market value on the date of vesting over the exercise price. The Company may be required to withhold from your compensation or collect from you and pay to the applicable taxing authorities an amount equal to a percentage of this compensation
income. 
 NOTICE OF DISQUALIFYING DISPOSITION OF ISO
SHARES. 
 If the option is an ISO, and if you sell or otherwise dispose of any of the Purchased Shares
acquired pursuant to the ISO on or before the later of (a) the date two (2) years after the Date of Grant, and (b) the date one (1) year after transfer of such Purchased Shares to you upon exercise of the option, you must
immediately notify the Company in writing of such disposition. You may be subject to income tax withholding by the Company on the compensation income recognized by you from the early disposition by payment in cash or out of the current wages or
other compensation payable to you. 
 SECTION 83(B) ELECTION FOR
UNVESTED SHARES. 
 With respect to unvested Purchased Shares that are
subject to the Repurchase Option, unless an election is filed by you with the Internal Revenue Service (and, if necessary, the proper state taxing authorities), within 30 days after the purchase of the unvested Purchased Shares electing,
pursuant to Section 83(b) of the Code (and similar state tax provisions, if applicable), to be taxed currently on any difference between the exercise price of the unvested Purchased Shares and their fair market value on the date of purchase,
there may be a recognition of taxable income (including, where applicable, alternative minimum taxable income) to you, measured by the excess, if any, of the fair market value of the unvested Purchased Shares at the time they cease to be unvested
Purchased Shares, over the exercise price of the unvested Purchased Shares. If you desire to file such an election, a form of 83(b) election is attached to the Exercise Agreement as Exhibit B-5. BY PROVIDING THE FORM OF ELECTION, THE
COMPANY DOES NOT THEREBY UNDERTAKE TO FILE THE ELECTION FOR YOU, WHICH OBLIGATION TO FILE SHALL REMAIN SOLELY WITH YOU. 

SECTION 409A OF THE INTERNAL REVENUE CODE

 The preceding summary assumes that section 409A of the Internal Revenue Code does not apply to your option. In
general, your option is exempt from Section 409A if the exercise price per share is at least equal to the fair market value per share of the Company’s Common Stock at the time the option was granted by the Board of Directors. Since shares
of Common Stock are not traded on an established securities market, the determination of their fair market value generally is made by the Board of Directors or by an independent appraisal firm retained by the Company. In either case, there is no
guarantee that the Internal Revenue Service will agree with the valuation. Section 409A would require additional taxes to be incurred and would subject your option to additional restrictions. 

 

 11 

 FORCE10 NETWORKS, INC. 2007
EQUITY INCENTIVE PLAN 
 INTERNATIONAL NOTICE
OF STOCK OPTION EXERCISE 
 You must sign this Notice on
Page 4 before submitting it to the Company. 
 PARTICIPANT INFORMATION: 

 

							
	 Name:
	 	  
	  		  	
Employee Number:                          
               

				
	 Address:
	 	  
	  		  	
				
		 	  
	  		  	

 OPTION INFORMATION: 

 

			
	 Date of Grant:
                                Grant Number:
                    
	  	         Type of Stock Option:

		
	 Exercise Price per Share:
$                    
	  	          ̈  Nonstatutory (NSO)

		
	 Total number of shares of Common Stock of Force10 Networks, Inc.

(the “Company”) covered by Option:
                                
	  	

 EXERCISE INFORMATION: 

Number of shares of Common Stock of the Company for which Option is being exercised now: 

                      
                          . (These shares are referred to below as the “Purchased Shares.”) 

Total Exercise Price for the Purchased Shares:
$                     (Payment must be in U.S. Dollars) 

Form of payment enclosed [check all that apply]: 

 

	 ̈	Check for $                , payable to “Force10 Networks, Inc.”

  

	 ̈	 Broker-assisted cashless exercise (once publicly-traded) 

 

									
	 Name(s) in which the Purchased Shares should be registered:

 
	  		  	
	  ̈
	 	In my name only	 		  		  	
					
	  ̈
	 	In the names of my spouse and myself	 		  		  	 My spouse’s name (if applicable):

					
		 		 		  		  	  

			
	The certificate for the Purchased Shares should be sent to the following address:	 		  	  

 
  

 

 REPRESENTATIONS AND ACKNOWLEDGMENTS OF
THE PARTICIPANT: 
  

	1.	 I represent and warrant to the Company that I am acquiring and will hold the Purchased Shares for investment for my account only, and not with a
view to, or for resale in connection with, any “distribution” of the Purchased Shares within the meaning of the U.S. Securities Act of 1933, as amended (the “Securities Act”). 

 

	2.	 I understand that the Purchased Shares have not been registered under the Securities Act by reason of a specific exemption therefrom and that the
Purchased Shares must be held indefinitely, unless they are subsequently registered under the Securities Act or I obtain an opinion of counsel (in form and substance satisfactory to the Company and its counsel) that registration is not required.

  

	3.	 I acknowledge that the Company is under no obligation to register the Purchased Shares. 

 

	4.	 I am aware of the adoption of Rule 144 by the U.S. Securities and Exchange Commission under the Securities Act, which permits limited public resales
of securities acquired in a non-public offering, subject to the satisfaction of certain conditions. These conditions include (without limitation) that certain current public information about the issuer is available, that the resale occurs only
after the holding period required by Rule 144 has been satisfied, that the sale occurs through an unsolicited “broker’s transaction” and that the amount of securities being sold during any three-month period does not exceed
specified limitations. I understand that the conditions for resale set forth in Rule 144 have not been satisfied and that the Company has no plans to satisfy these conditions in the foreseeable future. 

 

	5.	 I will not sell, transfer or otherwise dispose of the Purchased Shares in violation of the Securities Act, the U.S. Securities Exchange Act of 1934,
or the rules promulgated thereunder, including Rule 144 under the Securities Act. 

  

	6.	 I acknowledge that I have received and had access to such information as I consider necessary or appropriate for deciding whether to invest in the
Purchased Shares and that I had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the issuance of the Purchased Shares. 

 

	7.	 I am aware that my investment in the Company is a speculative investment that has limited liquidity and is subject to the risk of complete loss. I
am able, without impairing my financial condition, to hold the Purchased Shares for an indefinite period and to suffer a complete loss of my investment in the Purchased Shares. 

 

	8.	 I acknowledge that the Purchased Shares remain subject to the Company’s Right of First Refusal and the market stand-off (sometimes referred to
as the “lock-up”), all in accordance with the applicable Notice of Stock Option Grant and Stock Option Agreement, and that any certificates evidence the Shares shall bear the legends set forth in the Stock Option Agreement as well as the
following legend: 

 “THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A 180 DAY
MARKET STANDOFF RESTRICTION AS SET FORTH IN A CERTAIN AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. AS A RESULT OF SUCH AGREEMENT, THESE SHARES MAY NOT BE
TRADED PRIOR TO 180 DAYS AFTER THE EFFECTIVE DATE OF ANY PUBLIC OFFERING OF THE COMMON STOCK OF THE ISSUER HEREOF. SUCH RESTRICTION IS BINDING ON TRANSFEREES OF THESE SHARES.” 

 

	9.	 As security for my faithful performance of this Notice of Stock Option Exercise and the Stock Option Agreement, I agree, immediately upon receipt of
the stock certificate(s) evidencing the 

  

 2 

	 	 
Purchased Shares, to deliver such certificate(s), together with the Stock Powers executed by me and by my spouse, if any (with the date and number of Shares left blank), to the Secretary of the
Company or other designee of the Company (the “Escrow Holder”), who is hereby appointed to hold such certificate(s) and Stock Powers in escrow and to take all such actions and to effectuate all such transfers and/or releases
of such Purchased Shares as are in accordance with the terms of this Notice of Stock Option Exercise and the Stock Option Agreement. I agree that Escrow Holder will not be liable to any party to this Notice of Stock Option Exercise or the Stock
Option Agreement (or to any other party) for any actions or omissions unless Escrow Holder is grossly negligent or intentionally fraudulent in carrying out the duties of Escrow Holder under this Notice of Stock Option Exercise or the Stock Option
Agreement. Escrow Holder may rely upon any letter, notice or other document executed with any signature purported to be genuine and may rely on the advice of counsel and obey any order of any court with respect to the transactions contemplated by
this Notice of Stock Option Exercise or the Stock Option Agreement. The Purchased Shares will be released from escrow upon termination of the Right of First Refusal. 

 

	10.	 I will make no disposition of the Purchased Shares (other than as permitted by this Notice of Stock Option Exercise or the Stock Option Agreement)
unless and until: 

  

	 	(a)	 I shall have notified the Company of the proposed disposition and provided a written summary of the terms and conditions of the proposed
disposition; 

  

	 	(b)	 I shall have complied with all requirements of this Notice of Stock Option Exercise and the Stock Option Agreement applicable to the disposition of
the Purchased Shares; 

  

	 	(c)	 I shall have provided the Company with written assurances, in form and substance satisfactory to counsel for the Company, that (i) the proposed
disposition does not require registration of the Purchased Shares under the Securities Act or (ii) all appropriate actions necessary for compliance with the registration requirements of the Securities Act or of any exemption from registration
available under the Securities Act (including Rule 144) have been taken; 

  

	 	(d)	 I shall have provided the Company with written assurances, in form and substance satisfactory to the Company, that the proposed disposition will not
result in the contravention of any transfer restrictions applicable to the Purchased Shares pursuant to the laws and provisions referred to in paragraph 5 hereof; and 

 

	 	(e)	 Each person (other than the Company) to whom the Purchased Shares are transferred by means of one of the permitted transfers specified in this
Notice of Stock Option Exercise or the Stock Option Agreement must, as a condition precedent to the validity of such transfer, acknowledge in writing to the Company that such person is bound by the provisions of this Notice of Stock Option Exercise
and Stock Option Agreement and that the transferred Shares are subject to (i) as applicable, the Company’s Right of First Refusal and (ii) the market stand-off provisions, to the same extent such Shares would be so subject if retained
by the Participant. 

  

	11.	 I shall not transfer, assign, grant a lien or security interest in, pledge, hypothecate, encumber or otherwise dispose of any of the Purchased
Shares which are subject to the Company’s Right of First Refusal described below, except as permitted by this Notice of Stock Option Exercise or the Stock Option Agreement. 

 

	12.	 I agree that, to ensure compliance with the restrictions imposed by this Notice of Stock Option Exercise and the Stock Option Agreement, the Company
may issue appropriate “stop-transfer” instructions to its transfer agent, if any, and if the Company transfers its own securities, it may make appropriate notations to the same effect in its own records. 

 

 3 

	13.	 I acknowledge that the Company will not be required (i) to transfer on its books any Purchased Shares that have been sold or otherwise
transferred in violation of any of the provisions of this Notice of Stock Option Exercise and the Stock Option Agreement or (ii) to treat as owner of such Purchased Shares, or to accord the right to vote or pay dividends to any purchaser or
other transferee to whom such Purchased Shares have been so transferred. 

  

	14.	 I acknowledge that the Company may assign any of its rights and obligations under this Notice of Stock Option Exercise and the Stock Option
Agreement, including its rights to purchase Shares under the Right of First Refusal. No other party to this Notice of Stock Option Exercise and the Stock Option Agreement may assign, whether voluntarily or by operation of law, any of its rights and
obligations under this Notice of Stock Option Exercise and the Stock Option Agreement, except with the prior written consent of the Company. This Notice of Stock Option Exercise and the Stock Option Agreement shall be binding upon and inure to the
benefit of the successors and assigns of the Company. Subject to the restrictions on transfer herein set forth, this Exercise this Notice of Stock Option Exercise and the Stock Option Agreement will be binding upon Participant and Participant’s
heirs, executors, administrators, legal representatives, successors and assigns. 

  

	15.	 I acknowledge that I am acquiring the Purchased Shares subject to all other terms of the Notice of Stock Option Grant and Stock Option Agreement,
including the country-specific terms for my country of residence, if any, set forth in Appendix A thereto. 

  

	16.	 I acknowledge that the Company has encouraged me to consult my own adviser to determine the tax consequences of acquiring the Purchased Shares at
this time. 

  

	17.	 I agree to seek the consent of my spouse to the extent required by the Company to enforce the foregoing. 

 

							
	 PARTICIPANT
	 	  	 	 
			
	  
	 		 	Date:
                                         
               
	 (Signature)
	 		 		 	
			
	  
	 		 	
	 (Please print name)
	 		 		 	
				
	 Grant Number:
	 	  
	 		 	
				
	 Address:
	 	  
	 		 	
			
	  
	 		 	

  

	Exhibit 1:	Stock Power and Assignment Separate from Stock Certificate 

	Exhibit 2:	Spouse Consent 

  

 4 

 EXHIBIT 1 

STOCK POWER AND ASSIGNMENT 

SEPARATE FROM STOCK CERTIFICATE 

 Stock Power and Assignment 

Separate from Stock Certificate 

FOR VALUE RECEIVED and pursuant to that certain Notice of Stock Option Exercise dated as of
            ,         , [TO BE COMPLETED AT THE TIME OF EXERCISE] (the
“Agreement”), the undersigned hereby sells, assigns and transfers unto                     ,
             shares of the Common Stock of Force10 Networks, Inc., a Delaware corporation (the “Company”), standing in the undersigned’s name on the
books of the Company represented by Certificate No(s).          [TO BE COMPLETED AT THE TIME OF EXERCISE] delivered herewith, and does hereby irrevocably constitute and
appoint the Secretary of the Company as the undersigned’s attorney-in-fact, with full power of substitution, to transfer said stock on the books of the Company. THIS ASSIGNMENT MAY ONLY BE USED AS AUTHORIZED BY THE AGREEMENT AND ANY EXHIBITS
THERETO. 
  

							
	 Dated:             ,
        
	 		 		 	
		 		 		 	
		 		 		 	 PARTICIPANT

				
		 		 		 	  
 (Signature)

				
		 		 		 	  
 (Please
Print Name)

				
		 		 		 	  

(Spouse’s Signature, if any)

				
		 		 		 	  
 (Please
Print Spouse’s Name)

 Instructions to Participant: Please do not fill in any blanks other
than the signature line. The purpose of this Stock Power and Assignment is to enable the Company to acquire the shares and to exercise its “Right of First Refusal” set forth in the Stock Option Agreement and Notice of Stock Option Exercise
without requiring additional signatures on the part of the Participant or Participant’s Spouse. 

 EXHIBIT 2 

SPOUSE CONSENT 

 Spouse Consent 

The undersigned spouse of
                                 (the “Participant”) has
read, understands, and hereby approves the Stock Option Agreement between Participant and the Company (the “Agreement”) and the Notice of Stock Option Exercise (the “Notice”). In consideration of the
Company’s granting my spouse the right to purchase the Shares as set forth in the Agreement and Notice, the undersigned hereby agrees to be irrevocably bound by the Agreement and Notice and further agrees that any community property interest I
may have in the Shares shall similarly be bound by the Agreement and Notice. The undersigned hereby appoints Participant as my attorney-in-fact with respect to any amendment or exercise of any rights under the Agreement or Notice. 

 

							
	 Date:
                    
	 		 		 	
				
		 		 		 	  
 Print Name
of Participant’s Spouse

				
		 		 		 	  
 Signature of
Participant’s Spouse

				
		 	Address:Converted by EDGARwiz

ACQUISITION AGREEMENT

BETWEEN 

ALBERTA STAR DEVELOPMENT CORP. 

and 

STERLING MINING COMPANY

Dated as of November 17, 2009

TABLE OF CONTENTS 

ARTICLE 1 THE SUBSCRIPTION

1

1.

1.1

The Subscription

1

1.2

Conditions Precedent to Subscription

1

1.3

Company Action

8

1.4

Subscription Documents

8

1.5

Directors

9

ARTICLE 1:  THE SUBSCRIPTION

ARTICLE 2 COVENANTS OF THE COMPANY 

9

2.1

Ordinary Course of Business

9

2,2

Other Proposals

13

2.3

Access to Information

15

2.4

Structure of Transaction

 15

ARTICLE 3 COVENANTS OF THE PURCHASER 

15

3.1

Ordinary Course of Business

15

ARTICLE 4 FEES AND OTHER ARRANGEMENTS  

15

4.1

Purchaser Compensation Fee 

15

4.2

Liquidated Damages

15

ARTICLE 5 REPRESENTATIONS AND WARRANTIES OF THE PURCHASER 

16

5.1

Organization and Qualification

17

5.2

Authority Relative to this Agreement

17

5.3

Funds Available

 18

5.4

Regulatory Approvals

 18

ARTICLE 6 REPRESENTATIONS AND WARRANTIES OF THE COMPANY

18

6.1

Organization and Qualification

 18

6.2

Subsidiaries

 18

6.3

Authority Relative to this Agreement

19

6.4

Reporting Issuer Status

 19

6.5

No Violations

20

6.6

Capitalization

20

6.7

Material Agreements

20

6.8 

Company Documents

20

6.9

Disclosure

21

6.10 

Employee Obligations

21

6.11 

Transaction Fees

21

6.12 

Benefit Plans

21

6.13

Litigation, etc.

 21

-

6.14 

Environmental  

22

6.15 

Tax Matters   

22

6.16 

Tax Withholdings  

22

6.17 

Insurance 

22

6.18 

Pension and Employee Benefits  

23

6.19 

Licenses etc.

23

6.20 

Government Incentives  

23

6.21 

Reserve Reports  

23

6.22 

Title to Assets 

24

6.23 

Production Sales Contracts

24

6.24 

No Loans  

25

6.25 

Shareholder Rights Plan

25

6.26 

Personal Information  

25

6.27 

Regulatory Approvals

25

6.28 

No Undisclosed Material Liabilities

25

ARTICLE 7 ADDITIONAL AGREEMENTS

 26

7.1

Other Filings

26

7,2

Further Assurances

26

7.3

General Releases

 26

7.4

Personal Information  

26

ARTICLE 8 TERM, TERMINATION, AMENDMENT AND WAIVER

 27

8.1

Term

27

8.2

Termination

27

8.3

Effect of Termination

28

8.4 Amendment 

28

8.5

Waiver

28

ARTICLE 9 GENERAL PROVISIONS

 28

9.1

Notices

28

9.2

Interpretation

29

9.3

Date for Any Action

30

9.4

Number, etc

30

9.5

Miscellaneous

30

9.6

Publicity

31

9.7

Assignment

31

9.8

Survival of Representations and Warranties

31

9.9

Time is of the Essence

31

9.10 Currency. 

31

9.11 Accounting Matters

31

9.12 Severability

32

9.13 Governing Law

32

9.14 Attorney-Client Privilege   

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914 Schedules  

32

SCHEDULE A - FORM OF POST PETITION SECURED FINANCING AGREEMENT

ACQUISITION AGREEMENT

This Acquisition Agreement (this "Agreement"), dated as of November 17, 2009, is made between Alberta Star Development Corp., a corporation subsisting pursuant to the laws of the Province of Alberta (the "Purchaser"), and Sterling Mining Company, a corporation subsisting pursuant to the laws of the State of Idaho, U.S.A. (the "Company").

WHEREAS:

1.

The Company has filed a voluntary petition under Chapter 11 of the United States 

Bankruptcy Code in the United States Bankruptcy Court for the District of Idaho (the "Court");

2.

The Company is currently a Debtor-in-Possession in Chapter 11 bankruptcy, District of 

Idaho, U.S.A., Case No. 09-20178 — TLM 11 (the "Proceedings");

3.

The parties have executed a Binding Term Sheet and Addendum dated October 30, 2009. 

Pursuant to the terms of the Binding Term Sheet and Addendum, the Purchaser has deposited $1,250,000.00 USD in the trust account of Winston & Cashatt and the Purchaser has announced the existence of the Binding Term Sheet by press release dated November 2, 2009.

4.

Subject to there being in affect a binding order of the Court authorizing the Purchaser and 

the Company to enter into this Agreement and subject to the terms and conditions set forth herein, the Purchaser has agreed to provide the Company a credit facility in accordance with the Post Petition Secured Financing Agreement substantially in the form annexed hereto as Schedule A (the "DIP Agreement");

5.

The Purchaser wishes to acquire not less than one hundred (100%) percent of the 

common shares ("Shares") of the Company, on a fully diluted basis, and that such acquisition be effected through a subscription (the "Subscription") by the Purchaser to purchase previously unissued treasury Shares in the share capital of the Company; and

6.

The Purchaser is willing to make a Subscription for Shares subject to the terms and 

conditions of this Agreement and, in particular, subject to the condition that all claims of all the creditors (the "Creditors") of the Company will be paid, satisfied, settled, or compromised pursuant to or in conjunction with the Proceedings.

NOW THEREFORE IN CONSIDERATION of the covenants and agreements herein contained and for other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the parties covenant and agree as follows:

ARTICLE 1 

THE SUBSCRIPTION

1.1

The Subscription 

(a)

Subject to the terms and conditions of this Agreement, the Purchaser shall make

or cause a wholly-owned subsidiary to make, with full payment due no later than 

the Closing Date, as defined in I 1.1(c) below, and as set forth in the final order 

of confirmation (the "Order") by the Court of a Chapter 11 Plan of

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Reorganization (the "Plan"), a subscription to purchase all Shares from the treasury of the Company, to be completed by the Closing Date, for the subscription price and maximum aggregate consideration of eleven million seven hundred fifty thousand ($11,750,000.00 USD) dollars (the "Purchase Price"), paid either as ten million five hundred thousand ($10,500,00000 USD) dollars, plus one million two hundred fifty thousand ($1,250,000.00 USD) credit bid for DIP financing, or as eleven million seven hundred fifty thousand ($11,750,000.00 USD).

(b)

The parties agree that the Purchaser may make the Subscription itself, or through 

one or more direct or indirect wholly-owned subsidiaries, or any combination thereof (which, for the purposes hereof; may include a partnership, all of the partners of which are direct or indirect subsidiaries of the Purchaser or any combination thereof). In the event that any of such entities makes the Subscription, the term "Purchaser" as used herein shall include all of such entities, but the Purchaser shall continue to be directly liable to the Company as principal obligor for any default in performance by any such party.

(c)

The Subscription shall be made in accordance with all applicable laws and shall 

be subject to the conditions set forth in Section 1.2(a) and further provided that 100% of the outstanding Shares calculated on a fully diluted basis have been acquired by the Purchaser pursuant to the Subscription. Subject to the satisfaction or waiver of the conditions set forth in Section 1.2(a) and the Purchaser receiving written confirmation of same, the Purchaser shall, on or before the third business day following the date that the conditions set forth in Section 1.2(a) are satisfied (the "Closing Date"), pay the Purchase Price for the Shares validly purchased pursuant to the Subscription. The Purchaser shall use reasonable commercial efforts to consummate the Subscription, subject only to the terms and conditions thereof and the Subscription Documents (as hereinafter defined).

1.2

Conditions Precedent to Subscription 

(a)

Notwithstanding any other provision of the Subscription, the Purchaser shall not

be required to complete the Subscription and purchase the Shares unless all of the following conditions are satisfied or waived by the Purchaser on or before 4:00 p.m. (Pacific Standard Time) on February 28, 2010 (the "Expiry Time"):

the Company submitting a Plan to the Court on or before December 15, 2009, such Plan to be in a form satisfactory to the Purchaser in its sole discretion, acting reasonably;

(ii)

the Order of the Court confirming the Plan (the "Order"), such Order to 

be in a form satisfactory to the Purchaser in its sole discretion, acting reasonably, is entered on or before the Expiry Time and the period within which any appeal of the Order may be taken has expired;

(iii)

the TSX Venture Exchange (the "TSXV") shall have conditionally approved this Agreement, the Subscription and the transactions contemplated hereby;

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(iv)

the Sunshine Mine and infrastructure has not flooded to or above the 3100

foot level at any time prior to the Expiry Time;

(v)

the Plan shall provide that.

A.

all debts, obligations, and claims of any nature against the 

Company arising prior to the commencement of the Proceedings and all administrative and other claims arising after commencement of the Proceedings, including, but not limited to, the Lease Defaults set forth by Order of the Court dated August 21, 2009 (Docket No. 327), shall be paid in full, or comprised and satisfied pursuant to the Proceedings;

B.

the Purchaser or its nominee owns not less than 100% of the issued 

and outstanding Shares of the Company, on a fully diluted basis, and the Company has no other securities outstanding; and

C.

conditioned on the subscription being fully consummated, and no 

later than the Effective Date of the Plan, the then existing board of directors (the "Board") of the Company and officers shall resign effective immediately and shall be replaced by new directors and officers selected by the Purchaser;

(vi)

all periods to appeal, set aside, vary, or amend the Order of Confirmation

shall have expired, with or without appeal. If the Order of Confirmation is appealed and a stay of the Order of Confirmation is entered, then Alberta Star shall have the right to either waive this condition precedent or terminate this Agreement. The existence of any other litigation within the Proceedings shall not be a condition precedent to subscription;

(vii) this Agreement shall not have been terminated pursuant to Section 8.2;

(viii) no person having commenced a bona fide action for injunctive relief against the performance of this Agreement, completion of the Plan, or the completion of the Subscription, and no event shall have occurred or circumstance shall exist which would make it impossible or impracticable to satisfy one or more of the conditions of this Agreement;

(ix)

each of the representations and warranties of the Company which are set

out herein shall be true and correct at the Closing Date, and the Company shall have complied with each of its covenants and obligations set out in this Agreement, except for any breaches of representations, warranties, covenants, or obligations which would not individually or in the aggregate cause or would be reasonably expected to cause a Material Adverse Change (as hereinafter defined) in respect of the Company or materially impede the ability of the Purchaser to consummate the transactions contemplated hereby, and the Company shall have provided to the Purchaser a certificate of a senior officer of the Company certifying as to such compliance as at the Closing Date;

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(x)

the Board shall not have withdrawn, modified, or changed any of the 

recommendations or determinations set forth in Section 1.3;

(xi)

the Purchaser and the Company shall have entered into the DIP 

Agreement concurrently with the execution of this Agreement, pursuant to which the Purchaser agrees to provide the Company, from time to time, in accordance with the terms and conditions of the DIP Agreement, a junior-secured, administrative-priority debtor-in-possession credit facility (the "Credit Facility") to a maximum amount outstanding from time to time of one million two hundred fifty thousand dollars ($1,250,000) (the "Maximum Credit Amount"), which has been deposited by Purchaser pursuant to the terms of the Binding Term Sheet and Addendum;

(xii)

no change (or any condition, event, or development involving a prospective change) shall have occurred in the business, operations, results of operations, assets, capitalization, financial condition, licenses, permits, concessions, rights, liabilities, prospects, or privileges, whether contractual or otherwise (collectively, the "business") of the Company, which, in the sole judgment of the Purchaser, acting reasonably, constitutes a Material Adverse Change to the business of the Company;

(xiii)

no person having made an Acquisition Proposal (as defined below) which provides (or if successful would provide) holders of Shares of the Company (collectively referred to herein as the "Shareholders") consideration that has greater value per Share than the value per Share that would be provided pursuant to the Plan (as determined by the Purchaser's financial advisor, acting reasonably);

(xiv)

all regulatory approvals, orders, rulings, exemptions, and consents (including, without limitation, those of the Court and any stock exchanges or securities or other regulatory authorities) which, in the sole judgment of the Purchaser, acting reasonably, are necessary or desirable shall have been obtained on terms and conditions satisfactory to the Purchaser in its sole discretion, acting reasonably;

(xv)

(i) except as previously disclosed in the Proceedings, no act, action, suit, proceeding, objection, or opposition shall have been threatened or taken before or by any domestic or foreign court or tribunal or governmental agency or other regulatory authority or administrative agency or commission by any elected or appointed public official or by any private person in the United States, Canada or elsewhere, whether or not having the force of law; and (ii) no law, action, governmental regulation, policy or inquiry shall have been proposed, enacted, promulgated or applied, whether or not having the force of law, which, in the sole judgment of the Purchaser, acting reasonably:

A.

has the effect or may have the effect to cease trade, enjoin,

prohibit, or impose limitations, damages, or conditions on the 

purchase by, or the sale to, the Purchaser of the Shares or the right 

of the Purchaser to own or exercise full rights of ownership of the

Shares, or could adversely effect the ability of the Purchaser to complete a compulsory acquisition or any subsequent acquisition transaction or any amalgamation statutory arrangement or other transaction involving the Purchaser and/or an affiliate of the Purchaser and the Company and/or the holders of Shares for the purposes of the Company becoming, directly or indirectly, a wholly-owned subsidiary of the Purchaser;

B.

has had or may have a Material Adverse Effect (as hereinafter

defined) on the Company or the Purchaser or the Purchaser's ability to complete the Subscription, as determined by the Purchaser, acting reasonably;

(xvi)

the Purchaser shall have determined in its sole judgment there shall not exist any prohibition at law against the Purchaser making the Subscription or purchasing and paying for all of the Shares under the Subscription or completing any compulsory acquisition or subsequent acquisition transaction;

(xvii)

prior to the Closing Date and at the time the Purchaser shall first purchase and pay for Shares under the Subscription;

A.

all representations and warranties of the Company in the

Agreement:

i.

that are qualified by a reference to a Material Adverse

Effect shall be true and correct in all respects, and

that are not qualified by a reference to a Material Adverse Effect shall be true and correct in all respects unless the failure to be true or correct has not had or would not reasonably be expected to have a Material Adverse Effect; and

(xviii)

the Company shall have observed and performed its covenants in the Agreement in all material respects to the extent that such covenants were to have been observed or performed by the Company at or prior to the Closing Date;

(xix)

there shall have been no Material Adverse Change (as hereinafter defined) in respect of the Company since the date of the Agreement;

(xx)

the Agreement shall not have been terminated pursuant to its terms and no material provision of the Agreement shall have been held by any court, securities commission, or other regulatory authority to be invalid or unenforceable in accordance with its terms;

(xxi)

the DIP Agreement, if executed by the parties, shall not have been terminated pursuant to its terms;

(xxii)

the Purchaser shall be satisfied in its sole judgment that all outstanding rights to purchase Shares or other securities of the Company have been exercised or terminated on a basis acceptable to the Purchaser; and

(xxiii)

the Purchaser shall be satisfied in its sole judgment that each of the officers and directors of the Company have agreed to resign as officers and directors of the Company and having effect at the Closing Date.

(b)

The foregoing conditions in paragraph (a) are for the exclusive benefit of the

Purchaser and may be waived by the Purchaser, in whole or in part, in its sole discretion, at any time and from time to time, without prejudice to any other rights it may have.

(c)

The obligations of the Company under this Agreement shall be conditional upon

the following:

(i)

the Board shall not have withdrawn, modified, or changed any of its 

recommendations or determinations set forth in Section 1.3;

(ii)

the Purchaser shall have executed and delivered the DIP Agreement to the 

Company, concurrently with the execution of this Agreement;

(iii)

all regulatory approvals, orders, rulings, exemptions, and consents 

(including, without limitation, the Order of the Court and those of any stock exchanges or securities or other regulatory authorities) which, in the sole judgment of the Company, acting reasonably, are necessary or desirable shall have been obtained on terms and conditions satisfactory to the Company in its sole discretion, acting reasonably;

(iv)

the Purchaser shall have observed and performed its covenants in the

Agreement in all material respects to the extent that such covenants were

to have been observed or performed by the Purchaser at or prior to the

Expiry Time; and

(v)

the Agreement shall not have been terminated pursuant to its terms and no 

material provision of the Agreement shall have been held by any court, securities commission, or other regulatory authority to be invalid or unenforceable in accordance with its terms.

(d)

The foregoing conditions in paragraph (c) are for the exclusive benefit of the

Company and may be waived by the Company, in whole or in part, in its sole discretion, at any time and from time to time, both before or after the Expiry Time;

(e)

the creditors of the Company shall have approved the Plan in accordance with the

requirements of the Proceedings, or the Court has confirmed the Plan without such approval;

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(g)

the Company shall, at or prior to the Closing Date, have been discharged from the 

Proceedings as all claims under the Proceedings, including but not limited to pre-filing claims, post-filing claims, administrative expense claims, and all other claims of any nature, shall have been satisfied, compromised, or otherwise released and discharged;

(h)

the Court shall have granted the Order in a form and substance satisfactory to the 

Purchaser, acting reasonably;

(i)

all periods to appeal, set aside, vary, or amend the Order shall have expired 

without any appeal or application to set aside, vary, or amend being either outstanding or resolved adversely to the Company;

(j)

the process related to service of notice of the Plan upon creditors and any other 

parties shall have been performed in a manner satisfactory to the Purchaser, acting reasonably;

(k)

at the Closing Date, the Purchaser shall be satisfied, acting reasonably, that the 

Company has not been cease-traded, and that all filings of the Company with each of the securities commissions in the jurisdictions in which it has shareholders are accurate and up-to-date;

(I)

at the Closing Date, the Purchaser shall be satisfied, acting reasonably, that there

are no claims outstanding against the Company;

(m)

the Purchaser shall have completed its due diligence of the Company and the Shares, which due diligence shall be satisfactory to the Purchaser;

(n)

the Company shall have obtained all consents, approvals, and authorizations, 

regulatory or otherwise, including third party approvals and consents, required or necessary in connection with the Plan, and the transactions contemplated herein; and

(o)

As of the time of execution of this Agreement, each of the Purchaser and the 

Company represents and warrants to the other that none of the senior officers of the Purchaser or the Company, as the case may be, has actual knowledge that a representation or warranty of the other party herein is inaccurate or of the non­performance by the other party of any representation, warranty, or covenant contained in this Agreement. If prior to the completion of the Subscription, either the Purchaser or the Company has knowledge that any representation or warranty of the other party herein is inaccurate 01 any covenant or obligation of the other party herein has been breached or has not been complied with, the party shall so notify the other party, giving reasonable detail of the inaccuracy, breach, or non­compliance. In the case of the Company's representation and warranty, if the inaccuracy, breach, or non-compliance, as the case may be, is not capable of being cured, or if the Company is unable to effect a cure within three business days of notice of the inaccuracy, breach, or non-compliance, the Purchaser shall be entitled to refuse to make the Subscription provided that such failure results in the Company not satisfying the condition set out in Section 1.2(a)(ix).

-8

1.3

Company Action

(a)

The Company represents and warrants to the Purchaser that the Board has

determined unanimously that:

(i)

the Agreement and Subscription are fair, from a financial point of view, to 

the creditors ("Creditors") of the Company and the Shareholders and is in the best interests of the Creditors, Company, and the Shareholders; and

(ii)

the Board will recommend that Court accept the Plan,

subject to the right of the Board to withdraw, modify, or amend such determination or authorization (A) in the event a Superior Proposal (as hereinafter defined) is made; (B) in the event the Agreement is terminated prior to such withdrawal, modification, or amendment; or (C) in the event that the conditions set forth in Section 1.2(c) hereto are not satisfied or waived at the Closing Time by the Company in its sole discretion, acting reasonably.

(b)

The Company shall use reasonable commercial efforts to obtain an Order of the 

Court with respect to the Plan prior to the Expiry Time.

(c)

The Company shall deliver to the Purchaser, at the time of the execution of this 

Agreement, the executed DIP Agreement.

(d)

The Company shall cooperate with the Purchaser, take all reasonable action to 

support the Subscription, provide the Purchaser with a draft copy of the Plan and its submission (the "Submission") in support of the Plan to the Court, on a confidential basis, and shall provide the Purchaser with a reasonable opportunity to review and provide any comments thereon.

1.4

Subscription Documents 

(a)

The Purchaser shall provide the Company with a draft copy of the subscription

agreement and the related private placement documents (collectively, the "Subscription Documents") to be used for the Subscription, on a confidential basis, and shall provide the Company with a reasonable opportunity to review and provide comments thereon. The Purchaser shall file the Subscription Documents on a timely basis with the applicable securities commissions, stock exchange, or other regulatory authorities in United States and Canada and elsewhere (the "Regulatory Authorities"). The Subscription Documents, when filed with the Regulatory Authorities shall contain all information which is required to be included therein in accordance with all applicable laws, including, without limitation, all applicable corporate laws ("Applicable Corporate Laws") and under all applicable federal, state, provincial, and other applicable securities laws ("Applicable Securities Laws"), and shall in all material respects comply with the requirements of applicable law, including Applicable Corporate Laws and Applicable Securities Laws. The terms of the Subscription and the Subscription Documents shall be in accordance with the terms of this Agreement.

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(b)

The Company shall provide a certificate of a senior officer of the Company,

effective the Closing Date, that:

(i)

except as contemplated by this Agreement, the representations and 

warranties made by the Company in this Agreement are true and correct in all material respects as at the date that the Purchaser purchases Shares pursuant to the Subscription as if made on and as of such date;

(ii)

the Company has complied in all material respects with its covenants 

contained in this Agreement;

(iii)

there has not occurred any Material Adverse Change in respect of the Company; and

(iv)

in respect of the purchase of the Shares pursuant to the Subscription, the 

Purchaser owns 100% of the issued and outstanding shares (on a fully diluted basis) as of the Closing Date and there are no outstanding options or other rights to acquire any Shares.

13

Directors

The Company represents and warrants that there are currently three (3) seats on the Company's Board of Directors, and the Company agrees with and represents to the Purchaser that the Board has determined unanimously to use its best efforts to secure the resignations of all of the Company's directors to be effective on or before the Closing Date and to use its best efforts to enable the Purchaser to elect or appoint all of the directors of the Company.

ARTICLE 2 

COVENANTS OF THE COMPANY

2.1

Ordinary Course of Business 

The Company covenants and agrees that, from the date of this Agreement and prior to the earlier of the termination of this Agreement and the appointment or election to the Board of persons designated by the Purchaser pursuant to Section 1.5 hereof, unless directed by the Court or as the Purchaser shall otherwise provide notice in writing or as otherwise expressly contemplated or permitted by this Agreement:

(a)

it will conduct its operations in the ordinary and normal course of business and 

consistent with past practice and in accordance with applicable laws, and consistent with its operations during the course of the Proceedings, generally accepted industry practice, and any operating and other agreements applicable to its properties and assets and shall maintain and preserve its business organization, assets, and advantageous business and government relationships;

(b)

it will within two business days of receipt of any written audit inquiry, 

assessment, reassessment, confirmation, or variation of an assessment, indication that a reassessment is being considered, request for filing of a waiver or extension of time of any notice in writing relating to taxes, interest, penalties or losses (collectively, a "Tax Assessment"), deliver to the Purchaser a copy thereof

10

together with a statement setting out, to the extent then determinable, an estimate of the obligations, if any, of the Company on the assumption that such Tax Assessment is valid and binding;

(c)

it will as soon as reasonably practical notify the Purchaser of any actual,

imminent, or incipient Material Adverse Change, in its business or affairs; for the purposes of this Agreement "Material Adverse Change" or "Material Adverse Effect" means, when used in connection with a corporation, any change or effect (or any condition, event, or development involving a prospective change or effect) in or on the business, operations, results of operations, assets, capitalization, financial condition, licenses, permits, concessions, rights, liabilities, prospects, or privileges, whether contractual or otherwise, of the corporation, which is materially adverse to the business, operations, or financial condition of the corporation, considered as a whole, other than a change or effect (i) which has been publicly disclosed or otherwise disclosed in writing by the Company to the Purchaser prior to the date hereof, (ii) resulting from conditions affecting the mining industry as a whole, or (iii) resulting from general economic, financial, currency exchange, securities, or commodity market conditions (including, without limitation the prices of silver) in the United States;

(d)

other than commitments entered into by the Company prior to the date of this

Agreement and which have been disclosed in writing to the Purchaser prior to the execution of this Agreement, the Company shall not, directly or indirectly, do or permit to occur any of the following:

(i)

issue, sell, pledge, lease, dispose of, encumber or agree to issue, sell,

pledge, lease, dispose of or encumber:

A.

any additional Shares, warrants, calls, conversion privileges, or 

rights of any kind to acquire any Shares; or

B.

any assets or property of the Company, except in the ordinary 

course of business and consistent with past practice;

(ii)

enter into any material transactions;

(iii)

sell, lease, farmout, surrender, or otherwise dispose of any of the

Company's mining properties, rights or interests;

(iv)

amend or propose to amend its articles, by-laws, or other constating

documents;

(v)

split, combine, or reclassify any outstanding Shares, or declare, set aside

or pay any dividends or other distributions payable in cash, stock, property, or otherwise with respect to the Shares;

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(vii)

reorganize, amalgamate, merge, or otherwise continue the Company with any other person, corporation, partnership, or other business organization whatsoever;

(viii)

acquire or agree to acquire (by merger, amalgamation, acquisition of stock or assets, or otherwise) any person, corporation, partnership, or other business organization whatsoever (including any division) or acquire or agree to acquire any material assets;

(ix)

enter into rate swap transactions, basis swaps, forward rate transactions, 

commodity swaps, commodity options, equity or equity index swaps, equity or equity index options, bond options, interest rate options, foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, production sales transactions having terms greater than 30 days, or any other similar transactions (including any option with respect to any of such transactions) or any combination of such transactions (the foregoing are collectively and individually referred to as "Forward Transactions");

(x)

except in the usual, ordinary, and regular course of business and consistent with past practice, and subject to any orders entered in the Proceedings, satisfy any material claims or relinquish any material contractual rights or enter into any interest rate, currency, or commodity swaps, hedges or other similar financial instruments;

(xi)

other than in the ordinary course of business and consistent with past 

practises, or with respect to matters contemplated by this Agreement, incur or commit to incur any indebtedness for borrowed money or issue any debt securities;

(xii)

after the date of this Agreement, incur or commit to any individual capital expenditures without the prior written consent of the Purchaser, other than expenditures for (i) matters that involve safety or emergency situations where the consent of the Purchaser cannot be received in a reasonably expedient manner, and (ii) the fees and expenses contemplated herein;

(xiii)

amend any material agreements or undertakings to which the Company is a party, or which otherwise bind the Company; or

(xiv)

enter into or modify any employment, severance, collective bargaining, or similar agreements, policies, or arrangements with, or grant any bonuses, salary increases, employee benefits, severance, or termination pay to, any employees, consultants, officers, or directors of the Company;

(e)

the Company shall use reasonable commercial efforts to cause its current

insurance (or re-insurance) policies not to be cancelled or terminated or any of the coverage thereunder to lapse, unless simultaneously with such termination, cancellation or lapse, replacement policies underwritten by insurance and re­insurance companies of nationally recognized standing providing coverage equal

12 -

to or greater than the coverage under the cancelled, terminated, or lapsed policies for substantially similar premiums are in full force and effect;

(1)

the Company shall:

(1)

use reasonable commercial efforts to preserve intact its business

organization, goodwill and tax accounts, to keep available the services of its officers and employees as a group and to maintain satisfactory relationships with suppliers, agents, distributors, customers and others having business relationships with it;

(ii)

not take any action that would render, or that reasonably may be expected 

to render, any representation or warranty made by it in this Agreement untrue in any material respect at any time prior to the Expiry Time;

(iii)

use reasonable commercial efforts to enable the conditions set forth in 

Section 1.2 to be satisfied, including without limitation, the provision of all other documents, consents, and approvals, together with all such other information regarding the Company and its business, necessary for the Purchaser to make the Subscription, subject to applicable fiduciary duties of directors and officers of the Company;

(iv)

confer on a regular basis with the Purchaser with respect to operational 

matters and promptly notify the Purchaser orally and in writing of (i) any Material Adverse Change in the normal course or operation of its businesses or properties; (ii) any governmental or third party complaints, investigations or hearings (or communications indicating that the same may be contemplated); (iii) any change in the factual basis for any representation or warranty of the Company set forth herein, where such a change is or may be of such a nature as to render any such representation or wan-anty misleading or untrue in a material respect; or (iv) any material fact in respect of the Company which arises and which would have been required to be stated herein had the fact arisen on or prior to the date of this Agreement;

(v)

not settle or compromise any claim brought by any present, former, or 

purported holder of any securities of the Company in connection with the transactions contemplated by this Agreement or the Subscription without the prior written consent of the Purchaser;

(g)

the Company shall not enter into or modify the Plan or any contract, agreement, 

commitment, or arrangement with respect to any of the matters set forth in this Section 2.1, without the prior written consent of the Purchaser, not to be unreasonably withheld.

(h)

Except as set forth herein, the Company makes no further covenants of any kind 

whatsoever. The Company has used best efforts to disclose all known claims and interested parties, and best efforts to disclose that such claims and the rights of interested parties shall be determined through the Proceedings.

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2.2

Other Proposals

(a)

The provisions of this Section 2.2 shall apply to any inquiries or proposals

regarding any merger, amalgamation, arrangement, take-over bid to acquire more than 20% of the outstanding Shares, a sale of a material portion of the Company's assets, a sale of treasury shares, or any similar transactions involving the Company (any of the foregoing inquiries or proposals being referred to herein as an "Acquisition Proposal") made by a third party prior to the Expiry Time including without limitation any single or multi-step transaction or series of related transactions which is structured to permit such third party to acquire beneficial ownership of all or a material portion of the assets of the Company or to acquire in any manner, directly or indirectly, more than 20% of the outstanding Shares.

(b)

The Company shall immediately cease and cause to be terminated all existing

discussions and negotiations, if any, with any parties (other than the Purchaser and its directors, officers, employees, agents, financial advisors, legal advisors, or other representatives) conducted on or before the date of this Agreement with respect to any actual or potential Acquisition Proposal. The Company shall immediately following the entering into of this Agreement send a letter to all parties who have had such discussions or negotiations or have entered into confidentiality agreements with the Company pertaining to any actual or potential Acquisition Proposal and shall use commercially reasonable efforts to have all materials provided to such parties by the Company or prepared by such parties in respect of the Company destroyed or returned to the Company or its agents or advisors. The Company shall immediately advise the Purchaser verbally and in writing of any response or action (actual, anticipated, contemplated, or threatened) by any recipient of such letter which could hinder, prevent or delay or otherwise adversely affect the completion of the Subscription. The Company agrees not to release any third party from any confidentiality or standstill obligation set forth in any agreement to which the Company and such third party are parties except for a standstill obligation in connection with a Superior Proposal (as hereinafter defined) by such third party.

(c)

Neither the Company nor any of its directors, officers, employees, agents,

financial advisors, legal advisors, or other representatives shall, directly or indirectly: (i) solicit, initiate or knowingly encourage (including by way of furnishing information or entering into any form of agreement, arrangement or understanding) the initiation or continuation of any inquiries, discussions, negotiations, proposals or offers from any corporation, person or other entity or group (other than the Purchaser and its directors, officers, employees, agents, financial advisors, legal advisors or other representatives) in respect of any matter or thing which is inconsistent with the successful completion of the Subscription, including any actual or potential Acquisition Proposal, or (ii) provide any confidential information to, participate in any discussions or negotiations relating to, or which may reasonably be expected to lead to, an Acquisition Proposal with, or otherwise cooperate with or assist or participate in any effort to consider, review or initiate an Acquisition Proposal by, any corporation, person or other entity or group, other than the Purchaser; provided, however, that subject to the provisions of Section 4.1, the Company shall not be bound by the foregoing

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restrictions in this Section 2.2 in respect of any proposal or offer in writing received by the Company from another party, which offer was not solicited by the Company or any of its directors, officers, employees, agents, financial advisors, legal advisors or other representatives after the date hereof; which the Board determines is a Superior Proposal (as hereinafter defined) and further determines in good faith, after considering applicable law and receiving the advice of outside legal counsel, that such action is necessary in order for the Board to comply with its fiduciary duties under applicable law. If the Company or the Board determines to provide any confidential information in accordance with this proviso, the Company shall so notify the Purchaser in writing (which notice in writing must identify the party proposing such transaction and the terms and conditions thereof', which must include a copy of the terms and conditions of any written form of Acquisition Proposal and which must provide an undertaking to provide to the Purchaser any further documents relating to the terms or conditions thereof delivered to the Board or to the Company by or on behalf of such party) of any such provision of confidential information and provided further that the provision of any such confidential information shall be on terms and conditions no more favourable to such other party than those contained in the Confidentiality Agreement (as hereinafter defined).

(d)

Subject to Section 4.1 hereof, provided the Company is in compliance with the

terms of this Agreement, including this Section 2.2, nothing contained in this Section 2.2 or any other provision of this Agreement shall prevent the Board from considering, negotiating, approving, and recommending to the Court or the Shareholders an Acquisition Proposal for which adequate financial arrangements have been made and which the Board determines in good faith, after written advice from outside legal counsel and its financial advisors (copies of which are to be immediately delivered to the Purchaser) would, if consummated in accordance with its terms, result in a transaction at least $250,000 USD superior for the Company and its Shareholders than the transaction contemplated by this Agreement (any such Acquisition Proposal being referred to herein as a "Superior Proposal").

(e)

The Company shall not enter into any agreement (other than a confidentiality

agreement substantially similar to the Confidentiality Agreement (as defined below)) regarding a Superior Proposal (the "Proposed Agreement") without providing the Purchaser with an opportunity of not less than 24 hours to amend this Agreement to provide at least as favourable terms as those to be included in the Proposed Agreement. In particular, the Company covenants to provide the Purchaser with all material terms and conditions of any Proposed Agreement at least 24 hours prior to its proposed execution by the Company. The Board shall review any offer by the Purchaser to amend the terms of this Agreement in good faith in order to determine, in its discretion and exercising its fiduciary duties, whether the Purchaser's amended Subscription would result in the Acquisition Proposal not being a Superior Proposal. If the Board so determines, it will enter into an amended agreement with the Purchaser reflecting the Purchaser's amended Subscription. In the event the Purchaser agrees to amend this Agreement as provided above within such 24 hour period, the Company covenants to not enter into the Proposed Agreement and to not release the party making the Proposed Agreement from any standstill provisions. In the event of

15 -

non-cash consideration, financial equivalency will be determined by the Board, acting reasonably, after due consideration of the opinions of the Company's legal and financial advisors.

The Company shall ensure that the directors, officers, and employees of the Company and any financial advisors or other advisors or representatives retained by the Company are aware of the provisions of Article 2 and the Company shall be responsible for any breach of this Article 2 by such financial advisors, other advisors or representatives.

2.3

Access to Information 

Subject to the Confidentiality Agreement (the "Confidentiality Agreement") between the Company and the Purchaser, the Company shall in order to enable the Purchaser to quickly and efficiently integrate the business and affairs of the Purchaser and the Company afford the Purchaser's officers, employees, legal advisors, financial advisors, accountants, and other authorized representatives and advisors reasonable access, at all reasonable times, from the date hereof and until the expiration of this Agreement, to its business, properties, books, contracts, and records as well as to its management personnel, and, during such period, the Company shall furnish promptly to the Purchaser all information concerning its business, properties and personnel as the Purchaser may reasonably request.

2.4

Structure of Transaction 

The Company shall cooperate with the Purchaser in structuring the acquisition of the Shares pursuant to the Subscription in a tax efficient manner, provided that no such cooperation shall be required where such structuring shall have a Material Adverse Effect on the Company or negatively effect Shareholders or cause any breach of or default under this Agreement by the Company.

ARTICLE 3 

COVENANTS OF THE PURCHASER

3.1

Ordinary Course of Business 

The Purchaser covenants and agrees that, prior to the termination of this Agreement, unless the Company shall otherwise agree in writing or as otherwise expressly contemplated or permitted by this Agreement, it will as soon as reasonably practical, notify the Company of any actual, imminent, or incipient Material Adverse Change or Material Adverse Effect in its business or affairs.

ARTICLE 4 

FEES AND OTHER ARRANGEMENTS

4.1

Purchaser Compensation Fee 

Provided that there is no breach or non-performance by the Purchaser of a material

provision of this Agreement, if at any time after the execution of this Agreement:

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(a)

an actual or proposed Acquisition Proposal is publicly announced and not withdrawn on or prior to the Expiry Time;

(b)

the Board fails to recommend that the Court accepts the Plan as contemplated in Section 1.2(a)(v) or withdraws or, in any manner adverse to the Purchaser, amends, modifies, or changes the Plan without the prior written consent of the Purchaser, prior to the Expiry Time;

(c)

the Closing Date does not occur on or before the Expiry Time;

(d)

the Company enters into an agreement (other than a confidentiality agreement 

contemplated by Section 2.2(e)) prior to the Expiry Time providing for or in furtherance of an Acquisition Proposal, or the Company or the Board recommends that the Court accept an Acquisition Proposal; or

(e)

there is a material breach or non-performance by the Company of its covenants, 

agreements, obligations, representations, or warranties herein, which breach individually or in the aggregate could or would reasonably be expected to cause a Material Adverse Change in respect of the Company which has not been cured to the satisfaction of the Purchaser, acting reasonably, within three business days of receipt of notice by the Company of any such breach or non-performance (other than in Section 2.2, in respect of which no cure period will be applicable); then

the Company shall pay to the Purchaser a compensation fee of $250,000.00 USD no later than the Closing Date. For greater certainty, such compensation fee will only be required to be paid by the Company to the Purchaser once and such fee shall have the same priority of repayment as any administrative expense in the Proceedings.

4.2

Liquidated Damages 

The Purchaser and the Company each acknowledge that the amount set out in Section 4.1 represents liquidated damages which is a genuine pre-estimate of the damages, including opportunity costs, which the Purchaser or the Company, as the case may be, will suffer or incur as a result of the event giving rise to such damages and resultant termination of this Agreement, and is not a penalty. The Company and the Purchaser irrevocably waive any rights they may have to raise a defense that any such liquidated damages are excessive or punitive. For greater certainty, the parties agree that the compensation or damages to be received by the Purchaser pursuant to Section 4.1 are the sole remedy in compensation or damages of the Purchaser. Nothing herein shall preclude a party from seeking injunctive relief to restrain any breach or threatened breach of the covenants or agreements set forth in this Agreement or otherwise to obtain specific performance of any such act, covenants or agreements, without the necessity of posting a bond or security in connection therewith.

ARTICLE 5 

REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

The Purchaser hereby represents and warrants to the Company as follows:

- 17 -

5.1

Organization and Qualification 

The Purchaser is a corporation duly incorporated, validly subsisting, and in good standing under the laws of the Province of Alberta, and has the requisite corporate power and authority to carry on its business as it is now being conducted. The Purchaser is duly registered to do business and is in good standing in each jurisdiction in which the character of its properties, owned or leased, or the nature of its activities makes such registration necessary, except where the failure to be so registered or in good standing would not have a Material Adverse Effect on the business, affairs, operations, assets, prospects or financial condition of the Purchaser, taken as a whole, or on the ability of the Purchaser to consummate the transactions contemplated hereby.

5.2

Authority Relative to this Agreement

The Purchaser has the requisite corporate power and authority to enter into this Agreement and to carry out its obligations hereunder. The execution and delivery of this Agreement and the consummation by the Purchaser of the transactions contemplated hereby and by the Subscription have been duly authorized by the Purchaser, and no other corporate proceedings on the part of the Purchaser are or will be necessary to authorize this Agreement and the transactions contemplated hereby. This Agreement has been duly executed and delivered by the Purchaser and constitutes a legal, valid, and binding obligation of the Purchaser enforceable against the Purchaser in accordance with its terms, subject to the general qualifications that:

(a)

such validity, binding effect and enforceability may be limited by:

(i)

applicable bankruptcy, insolvency, or other laws affecting creditors' rights 

generally;

(ii)

the statutory and inherent powers of courts to grant relief from forfeiture, 

to stay execution of proceedings before it and to stay executions on judgments;

(iii)

a court being unable to obtain jurisdiction over all necessary and 

indispensable parties to any proceedings before it to enforce any of the agreements; and

(iv)

equitable principles, including the principle that equitable remedies such 

as specific performance and injunctive relief are available only in the discretion of the applicable court (regardless of whether enforcement is considered in proceedings at law or in equity);

(b)

the validity, binding nature, and enforceability of provisions in this Agreement 

which purport to sever therefrom any provision which is unenforceable or invalid under applicable law without affecting the enforceability or validity of the remainder of such agreement would be determined in the discretion of the court;

(c)

the failure to exercise a right of action within a period prescribed in the applicable 

legislation governing the limitation of actions may act as a bar to enforcement of such rights at any time thereafter; and

18

(d)

the costs of and incidental to proceedings authorized to be taken in court OT before

a judge are within the discretion of the court or judge before which such proceedings are brought and a court or judge has full power to determine by whom and to what extent the costs of such proceedings will be paid.

5.3

Funds Available

The Purchaser shall have proof of deposit in the Winston & Cashatt Trust Account of sufficient funds to pay its obligations under this Agreement, and shall provide such proof at the scheduled hearing on confirmation of the Plan of Reorganization.

5.4

Regulatory Approvals 

Other than in connection with or in compliance with the provisions of Applicable Corporate Laws and Applicable Securities Laws: (i) there is no legal impediment to the Purchaser's consummation of the transactions contemplated by this Agreement; and (ii) no filing or registration with, or authorization, consent, or approval of, any domestic or foreign public body or authority is required of the Purchaser in connection with the making or the consummation of the Subscription, except for such filings or registrations which, if not made, or for such authorizations, consents, or approvals which, if not received, would not have a Material Adverse Effect on the financial condition of the Purchaser or on the ability of the Purchaser to consummate the transactions contemplated hereby.

ARTICLE 6 

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

The Company hereby represents and warrants to the Purchaser as follows: 

6.1

Organization and Qualification 

The Company is a corporation duly incorporated and validly subsisting under the laws of the State of Idaho, U.S.A., and has the requisite corporate power and authority to carry on its business as it is now being conducted and has been historically conducted by the Company. The Company is duly registered to do business and is in good standing in each jurisdiction in which the character of its properties, owned or leased, or the nature of its activities makes such registration necessary, except where the failure to be so registered or in good standing would not have a Material Adverse Effect on the business, affairs, operations, assets, prospects, or financial condition of the Company or on the ability of the Company to consummate the transactions contemplated hereby. Copies of the constating documents (including articles, by-laws and constating agreements) of the Company together with all amendments to date (collectively, the "Company Governing Documents") heretofore delivered to the Purchaser are accurate and complete as of the date hereof and have not been amended or superseded.

6.2

Subsidiaries

The Company has no subsidiaries and the Company is not affiliated with, nor is it a holding corporation of, any other body corporate.

6.3

Authority Relative to this Agreement

The Company has the requisite corporate power and authority, even if only by virtue of the laws set forth in Title 11 of the United States Code (the "Bankruptcy Code"), to enter into this Agreement and to carry out its obligations hereunder. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by the Board and no other corporate proceedings on the part of the Company are or will be necessary to authorize this Agreement and the transactions contemplated hereby. This Agreement has been duly executed and delivered by the Company and constitutes a legal, valid, and binding obligation of the Company enforceable against the Company in accordance with its terms, subject to the general qualifications that.

(a)

such validity, binding effect and enforceability may be limited by:

applicable bankruptcy, insolvency, or other laws affecting creditors' rights generally;

(ii)

the statutory and inherent powers of courts to grant relief from forfeiture, 

to stay execution of proceedings before it, and to stay executions on judgments;

(iii)

a court being unable to obtain jurisdiction over all necessary and 

indispensable parties to any proceedings before it to enforce any of the agreements; and

(iv)

equitable principles, including the principle that equitable remedies such 

as specific performance and injunctive relief are available only in the discretion of the applicable court (regardless of whether enforcement is considered in proceedings at law or in equity);

(b)

the validity, binding nature, and enforceability of provisions in this Agreement 

which purport to sever therefrom any provision which is unenforceable or invalid under applicable law without affecting the enforceability or validity of the remainder of such agreement would be determined in the discretion of the Court;

(c)

the failure to exercise a right of action within a period prescribed in the applicable 

legislation governing the limitation of actions may act as a bar to enforcement of such rights at any time thereafter; and

(d)

the costs of and incidental to proceedings authorized to be taken in court or before 

a judge are within the discretion of the court or judge before which such proceedings are brought and a court or judge has full power to determine by whom and to what extent the costs of such proceedings will be paid.

6.4

Reporting Issuer Status 

The Company is a United States domestic issuer and reporting issuer in British Columbia, 

Alberta, and Ontario, and, to its knowledge, is not in material compliance with 

Applicable Securities Laws therein; and the Shares are listed and posted for trading on

20 -

the Over-The-Counter-Bulletin-Board under the trading symbol "SRLMQ" and the Frankfurt Stock Exchange.

6.5

No Violations

The execution, delivery, and performance of this Agreement does not and will not result in the restriction of the Company from engaging in its business or the businesses historically engaged in by the Company; or from competing with any person or in any geographical area; and does not and will not result in a Material Adverse Effect on its business or trigger or cause to arise any rights of any person under any contract or arrangement to restrict the Company from engaging in the business currently or historically carried on by the Company.

6.6

Capitalization

The authorized share capital of the Company consists of an unlimited number of Shares and an unlimited number of preferred shares issuable in series, of which as of the date hereof, 39,439,974 Shares were issued and outstanding. There are no options, warrants, or other rights, agreements, or commitments of any character whatsoever requiring the issuance, sale, or transfer by the Company of any Shares 01 any securities convertible into, 01 exchangeable or exercisable for, or otherwise evidencing a right to acquire, any Shares. All outstanding Shares have been duly authorized and validly issued, are fully paid and non-assessable, and are not subject to, nor were they issued in violation of, any pre-emptive rights.

6.7

Material Agreements 

All agreements material to the conduct of the Company's business have been disclosed in writing to the Purchaser prior to the execution of this Agreement. Other than as previously disclosed in writing to the Purchaser prior to the execution of this Agreement, there are no other agreements which contain any "change of control" provisions which would be triggered or affected by the Subscription.

6.8 Company Documents 

The documents or information (the "Company Public Documents") which are available on Edgar and SEDAR as of the date hereof are, as of their respective dates, in compliance in all material respects with all applicable laws and at the time filed did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. The Company will deliver to the Purchaser as soon as they become available true and complete copies of any reports or statements required to be filed by it with any Regulatory Authorities subsequent to the date hereof until the earlier of the Expiry Time or the termination of this Agreement. As of their respective dates, such reports and statements will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances in which they are made, not misleading and will comply in all material respects with all applicable requirements of law.

- 21 -

6.9

Disclosure

The Company has disclosed to the Purchaser in writing prior to the execution of this Agreement, any information regarding any event, circumstance, or action taken or failed to be taken which could constitute a Material Adverse Change or have a Material Adverse Effect on the business, operations, assets, capitalization, financial condition, prospects, rights, or liabilities of or relating to the Company.

6.10 Employee Obligations 

Except as set forth in writing to the Purchaser prior to the execution of this Agreement, the Company is not a party to and will not enter into any employment agreement or to any written or oral policy, agreement, obligation, or understanding which contains any specific agreement as to notice of termination or severance pay in lieu thereof or which cannot be terminated without cause upon giving reasonable notice as may be implied by law, or which provides for a payment on a change of control of the Company or which creates rights in respect of loss or termination of office or employment in the event the Plan and Subscription is unsuccessful.

6.11 Transaction Fees 

The Company has not retained any financial advisor, broker, legal advisor, agent, or finder, or paid or agreed to pay any financial advisor, broker, legal advisor, agent, or finder on account of this Agreement or any transaction presently ongoing or contemplated hereby, except that Elsaesser Jarzabek Anderson Marks & Elliott, Chtd. has been retained as the Company's legal advisor in connection with certain matters including the transactions contemplated hereby. The aggregate fees and expenses payable by the Company to all legal, financial and accounting advisors in connection with this Agreement and the transactions contemplated hereby shall be of a reasonable amount.

6.12 Benefit Plans

The Company does not have any employee benefit plans, share compensation, or deferred 

stock plans other than a stock option plan as described in the Company Public

Documents. 6.13 Litigation, etc. 

Except as otherwise disclosed in the Proceedings, as at the Closing Date, there will be no actions, suits, or proceedings pending, or to the knowledge of the Company threatened, affecting the Company, at law or in equity, or before or by any federal, provincial, municipal, or other governmental department, commission, board, bureau, agency, or instrumentality, which action, suit, or proceeding involves a possibility of any judgment against or liability of the Company which, if successful, would have a Material Adverse Effect on the business, affairs, operations, assets, prospects, or financial condition of the Company, or on the ability of the Company to consummate the transactions contemplated hereby.

- 22 -

6.14 Environmental

Except as has been disclosed to the Purchaser in writing prior to the execution of this Agreement, the Company is not aware of nor has it received:

(a)

any order or directive which relates to environmental matters and which requires any material work, repairs, construction, or capital expenditures; or

(b)

any demand or notice with respect to the material breach of any environmental, health, or safety law applicable to the Company or any of its business undertakings, including, without limitation, any regulations respecting the use, storage, treatment, transportation, or disposition of environmental contaminants.

6.15 Tax Matters 

For all state, local, foreign, and federal taxing authorities to which the Company has owed or will owe any tax:

(a)

the Company has filed all necessary tax returns and attendant documentation and 

is in full compliance with filing requirements; and

(b)

the Company has paid, or will pay through the Plan on or before the Expiry Date, 

all taxes properly due and owing.

6.16 Tax Withholdings 

The Company has withheld from each payment made to any of its present or former employees, officers, and directors, and to all persons who are non-residents of the United States, all amounts required by law and will continue to do so until the Expiry Time, and has remitted such withheld amounts within the prescribed periods to the appropriate government authority. The Company has remitted all pension plan contributions, unemployment insurance premiums, employer health taxes, and other taxes payable by it in respect of its employees and has or will have remitted such amounts to the proper governmental authority within the time required by applicable law. The Company has charged, collected, and remitted on a timely basis all taxes as required by applicable law on any sale, supply, or delivery whatsoever made by the Company.

6.17 Insurance

Policies of insurance in force as of the date hereof naming the Company as an insured adequately cover all risks reasonably and prudently foreseeable in the operation and conduct of the business of the Company for which, having regard to the nature of such risk and the relative cost of obtaining insurance, it is in the opinion of the Company, acting reasonably, appropriate to seek such insurances rather than provide for self insurance. All such policies of insurance shall remain in full force and effect and shall not be cancelled or otherwise terminated as a result of the transactions contemplated hereby.

-23 -

6.18 Pension and Employee Benefits 

(a)

The Company has complied, in all material respects, with all the terms of and all 

applicable laws in respect of the pension and other employee compensation and benefit obligations of the Company and does not maintain or have any pension or retirement income plans or other employee compensation or benefit plans, agreements, policies, programs, arrangements OT practices, whether written or oral.

(b)

There are no actions, suits, claims (other than routine claims for payment of 

benefits in the ordinary course), trials, demands, arbitrations or other proceedings which are pending or threatened in respect of any employee compensation and benefit program of the Company or its assets which individually or in the aggregate would have a Material Adverse Effect.

6.19 Licenses, etc. 

The Company owns, possesses, or has obtained and is in compliance with, all licenses, permits (including permits required under environmental, health, and safety laws), certificates, costs, orders, grants, and other authorizations of or from any governmental entity necessary or desirable to conduct its business as now conducted or as proposed to be conducted, other than those the failure to own, possess, obtain, or be in compliance with which would not individually or in the aggregate have a Material Adverse Effect on the Company.

6.20 Government Incentives 

All filings made by the Company under which they have received or are entitled to government incentives have been made in accordance, in all material respects, with all applicable legislation and contain no misrepresentations of material fact or omit to state any material fact which could cause any amount previously paid or previously accrued on its or their accounts to be recovered or disallowed.

6.21 Reserve Reports 

(a)

With respect to the mining properties currently owned by the Company, since the

effective date of the Company's independent engineering report prepared by Behre Dolbear & Company, Inc. (the "Engineers") and effective April 16, 2007 (the "Reserve Report"), as provided by the Company to the Purchaser, there has been no Material Adverse Change from how the mining properties which are the subject of the Reserve Report are described in the Reserve Report, except as may have occurred through normal production or otherwise as a result of transactions (including dispositions) in the ordinary course of business. All information provided by the Company to the Engineers to assist the Engineers in the preparation of the Reserve Report was, to the knowledge of the Company, as of the time of delivery to the Engineers, and as of the effective dates of the Reserve Report, accurate or the best estimate of such information. The Company provided to the Engineers all information and documents requested by the Engineers and the Company did not knowingly withhold and is not otherwise aware of any information which, if provided to the Engineers, would have a material impact on the Reserve Report. To the knowledge of the Company, the Company has not

- 24 -

done any act or thing whereby any of the mineral rights for which the Engineers have ascribed value in the Reserve Report, may be cancelled or terminated and such mineral rights are free and clear of all encumbrances and royalty burdens, other than those taken into account by the Engineers in the aforesaid Reserve Report, created by, through OT under the Company and, except as disclosed in the aforesaid Reserve Report, none of the mineral rights are subject to reduction except for those created in the ordinary course of business and which are not individually or in the aggregate material to the Company.

(b)

All information provided by the Company to the Purchaser to assist the Purchaser

in the review of the unengineered mineral properties currently owned by the Company was to the knowledge of the Company, at the time of the delivery of such information to the Purchaser, complete and accurate in all material respects or the best estimate of such information. The Company provided the Purchaser all information and documents requested by the Purchaser and the Company did not knowingly withhold and is not otherwise aware of any information which, if provided to the Purchaser, would have a material adverse impact on the un-engineered mineral properties currently owned by the Company.

6.22 Title to Assets 

(a)

To the knowledge of the Company, the Company holds such right and title to the 

assets including but not limited to the Sunshine Mine and Sunshine Lease used in connection with its business as may be required for the carrying on of its business in accordance with normal industry practice. The Company has represented its ownership by and through its Chapter 11 Bankruptcy Petition and Schedules, and other filings in the Proceedings.  Purchaser is relying on Company's 

representations regarding its title to and ownership of these assets.

(b)

The Company has not received notice of any material default under any 

documents of title which default is continuing as of the date of execution hereof and would materially adversely affect the value of the assets owned by the Company or subject the documents of title to cancellation or termination.

(c)

Except as has been disclosed to the Purchaser in writing prior to the execution of 

this Agreement or as disclosed in the documents of title, the Company's mineral rights are not subject to reduction by virtue of the conversion or other alteration of the interest of any person under existing agreements created by, through, or under the Company

(d)

Except as disclosed in the documents of title or except as has been previously 

disclosed to the Purchaser in writing prior to the execution of this Agreement, there are no carried interests whereby it is obligated to pay a share of the costs associated with any of the assets owned by the Company attributable to the interest of another person.

6.23 Production Sales Contracts 

Except as disclosed to the Purchaser in writing prior to the execution of this Agreement 

or contained in the Company Pubic Documents, there are no agreements or arrangements 

under which it, or any person acting on its behalf, is obligated to sell or deliver

- 25 -

production allocable to the mineral rights of the Company to any person, other than contracts which have a term of less than 30 days

6.24 No Loans

As of the Closing Date, the Company will not have any loans or other indebtedness outstanding which have been made to or from any of its shareholders, officers, directors or employees or any other person not dealing at arm's length with the Company.

6.25 Shareholder Rights Plan 

The Company has not adopted a shareholder rights plan and will not adopt such a plan prior to the Expiry Time.

6.26 Personal Information 

The Company has at all times complied with all applicable laws relating to the collection, retention, use, and disclosure of any information about an identifiable individual ("Personal Information"). The Company has obtained all consents required by law relating to the collection, retention, use and disclosure of all Personal Information collected, retained, used or disclosed in the course of its business.

6.27 Regulatory Approvals 

Other than in connection with Of in compliance with the provisions of Applicable Corporate Laws and Applicable Securities Laws (i) there is no legal impediment to the Company's consummation of the transactions contemplated by this Agreement, and (ii) no filing or registration with, or authorization, consent, or approval of, any domestic or foreign public body or authority is required of the Company in connection with the consummation of the Subscription, except for such filings or registrations which, if not made, or for such authorizations, consents, or approvals which, if not received, would not have a Material Adverse Effect on the financial condition of the Company or on the ability of the Company to consummate the transactions contemplated hereby.

6.28 No Undisclosed Material Liabilities 

Except: (a) as disclosed or reflected in the audited financial statements of the Company as at December 31, 2008; and (b) for liabilities and obligations publicly disclosed prior to the date hereof, the Company has not incurred any material liabilities of any nature, whether accrued, contingent, or otherwise, or which would be required by generally accepted accounting principles applicable in Canada to be reflected on a balance sheet of the Company as of the date hereof which could constitute a Material Adverse Change or have a Material Adverse Effect on the business, operations, assets, capitalization, financial condition, prospects, rights, or liabilities of or relating to the Company.

Except as set forth herein, the Company makes no further representations or warranties of any kind whatsoever. The Company has used best efforts to disclose all known claims and interested parties, and that such claims and the rights of interested parties shall be determined through the Proceedings.

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ARTICLE 7 

ADDITIONAL AGREEMENTS

7.1

Other Filings

The Purchaser and the Company each has filed, or as promptly as practicable hereafter, shall prepare and file, any filings required under Applicable Corporate Laws and Applicable Securities Laws, or any other applicable law relating to the Subscription, the Plan and the transactions contemplated hereby.

7.2

Further Assurances

Subject to the terms and conditions herein provided and to fiduciary obligations under applicable law as advised by legal counsel in writing, each of the parties hereto agrees to use reasonable commercial efforts to take, or cause to be taken, all action and to do, or cause to be done, all things necessary, proper, or advisable to consummate and make effective as promptly as practicable the transactions contemplated by this Agreement, including the Subscription, and to cooperate with each other in connection with the foregoing, including using reasonable commercial efforts to obtain all necessary consents, approvals, and authorizations as are required to be obtained under any federal, provincial, or foreign law or regulations, to defend all lawsuits or other legal proceedings challenging this Agreement or the consummation of the transactions contemplated hereby, including the Subscription, to cause to be lifted or rescinded any injunction or restraining order or other order adversely affecting the ability of the parties to consummate the transactions contemplated hereby, including the Subscription, and to effect all necessary registrations and other filings and submissions of information requested by governmental authorities. For purposes of the foregoing sentence, the obligation of the Company and the Purchaser to use "reasonable commercial efforts" to obtain waivers, consents and approvals to loan agreements, leases, and other contracts shall not include any obligation to agree to an adverse modification of the terms of such documents or to prepay or incur additional obligations to such other parties.

7.3

General Releases

The Company shall, on or before the Closing Date, cause its directors, officers, and employees to execute in favour of the Company and the Purchaser general releases of all claims that such persons may have against the Company and the Purchaser, and their respective directors, officers, and employees.

7.4

Person al Information

Any Personal Information disclosed by one party (the "Disclosing Party") to another party (the "Receiving Party") shall only be collected, used, or disclosed by the Receiving Party for the purposes that relate to the transactions contemplated by this Agreement. On termination of this Agreement, the Receiving Party shall either return or destroy such Personal Information as directed by the Disclosing Party. On completion of the transactions contemplated herein, the Purchaser agrees only to use the Personal Information in the possession or control of the Company for the purposes for which the Personal Information was collected.

27

ARTICLE 8 

TERM, TERMINATION, AMENDMENT AND WAIVER

8.1

Term

This Agreement shall be effective from the date hereof until the earlier of the termination of this Agreement pursuant to Section 8.2 and the appointment or election to the Board of persons designated by the Purchaser pursuant to Section 1.5, provided that Sections 4.1 shall survive the termination of this Agreement.

8.2

Termination 

This Agreement, other than the provisions set forth in Sections 4.1, may be terminated by written notice promptly given to the other party hereto, at any time prior to the time the Purchaser acquires and pays for the Shares pursuant to the Subscription:

(a)

by mutual written consent of the Purchaser and the Company;

(b)

by the Purchaser, if the Company has not submitted the Plan, satisfactory to the Purchaser within its sole judgment, to the Court on OT before 4:00 p.m. (Vancouver time) on December 15, 2008;

(c)

by the Purchaser, if the Order of the Court confirming the Plan, satisfactory to the Purchaser within its sole judgment, has not occurred on or before the Expiry Time;

(d)

by the Purchaser, if the conditions set forth in Section 1.2(a) have not been satisfied or waived by the Purchaser by the Expiry Time;

(e)

by the Company, if the conditions set forth in Section 1.2(c) have not been 

satisfied or waived by the Company by the Expiry Time;

(f)

by the Purchaser or the Company, if a satisfactory Order of the Court confirming 

the Plan has occurred, if on or before the Expiry Time, and if the Purchaser has not purchased and paid for the Shares pursuant to the Subscription in accordance with the terms of this Agreement on or before the Closing Date;

(g)

by the Purchaser or the Company, if the fee set forth in Section 4.1 shall become 

due and payable by the Company to the Purchaser and payment thereof is made to the Purchaser;

(h)

by the Purchaser or the Company, if a court of competent jurisdiction or a 

governmental, regulatory, or administrative agency or commission shall have issued an order, decree, or ruling or taken any other action permanently restraining, enjoining, or otherwise prohibiting any of the transactions contemplated by this Agreement and such order, decree, ruling, or other action shall have become final and non-appealable, provided that the party seeking to terminate this Agreement pursuant to this Section 8.2 shall have used reasonable commercial efforts to remove such order, decree, ruling, or injunction; or

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(i)

the Company shall have defaulted or failed to carry out the terms of or obligations

imposed upon the Company by any other agreement between the Company and the Purchaser.

Any termination under Article 8 of this Agreement is governed by ¶ 1 of the Addendum to Binding Term Sheet, and shall continue to be so governed for the Term of this Agreement. The Binding Term Sheet and Addendum are fully incorporated herein by this reference. Said paragraph provides the agreed upon measures for dealing with the Purchaser's Deposit of $1,250,000.00 USD.

8.3

Effect of Termination 

In the event of the termination of this Agreement as provided in Section 8.2, this Agreement shall forthwith become void and there shall be no liability on the part of the Purchaser or the Company hereunder, except as set forth in Section 4.1, Section 8.2 and this Section 8.3. Nothing contained in this Section 8.3 shall relieve any party from liability for any breach of any provision of this Agreement and from any obligation to pay the fees set forth in Section 4.1. No termination of this Agreement shall affect the obligations of the parties pursuant to the Confidentiality Agreement referred to in Section 2.3, as applicable, except to the extent specified therein.

8.4 Amendment

This Agreement may not be amended except by an instrument in writing signed by the appropriate officers on behalf of each of the parties hereto.

8.5

Waiver

The Purchaser and the Company may (i) extend the time for the performance of any of the obligations or other acts of the other, (ii) waive compliance with any of the other's agreements or the fulfillment of any conditions to its own obligations contained herein, or (iii) waive inaccuracies in any of the other's representations or warranties contained herein or in any document delivered by the other party hereto; provided, however, that any such extension or waiver shall be valid only if set forth in an instrument in writing signed on behalf of such party.

ARTICLE 9 

GENERAL PROVISIONS

9.1

Notices

All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed to have been duly given or made as of the business day delivered or sent if delivered personally or sent by facsimile transmission or sent by prepaid overnight courier to the parties at the following address (or at such other addresses as shall be specified by either party by notice to the other):

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If to the Purchaser:

Alberta Star Development Corp. Suite 506 -- 675 W. Hastings St. Vancouver, British Columbia V68 1N2

Attention:

Tim Coupland, President and CEO

Fax: (604) 801-5499

with a copy to:

Borden Ladner Gervais LLP 1000, 400 - 3rd Avenue S.W. Calgary, Alberta T2P 4112

Attention: Donald B. Edwards Fax: (403) 266-1395

with a copy to:

Winston & Cashatt

601 W. Riverside, Ste. 1900 Spokane, WA 99201

Attention: David P. Gardner Fax: (509) 838-1416

If to the Company:

Sterling Mining Company

2201 Government Way, Suite E. Coeur d'Alene, Idaho, U.S.A. 82814

Attention: Roger Van Voorhees Fax: (

with a copy to:

Elsaesser Jarzabek Anderson Marks & Elliott, Chtd. 1400 Northwood Center Court, Suite C

Coeur d'Alene, ID 83814

Attn: Bruce Anderson c/o Roger Van Voorhees Fax: (208) 667-2150

9.2

Interpretation

In this Agreement, unless otherwise indicated:

(a)

the headings are for reference purposes only and shall not affect in any way the

meaning or interpretation of this Agreement;

- 30

(b)

the terms "this Agreement", "hereto", "hereto", "herein", and "hereunder" and 

similar expressions refer to this Agreement (including all Schedules hereto) and not to any particular article, section or other portion hereof;

(c)

all references in this Agreement to an "Article" or "Section" followed by a 

number and/or a letter refer to the specified article or section of this Agreement, and all references in this Agreement to a "Schedule" followed by a letter refer to the specified schedule to this Agreement;

(d)

the term "business day" means a day other than a Saturday, Sunday, or statutory 

holiday, when banks are generally open in Coeur d'Alene, Idaho, and Vancouver, British Columbia for the transaction of banking business;

(e)

references to "party" or "parties" are references to a party or parties to this 

Agreement; and

(0

the terms "in writing" or "written", include printing, typewriting, or any

electronic means of communication by which words are capable of being visually reproduced at a distant point of reception including facsimile and email transmissions.

9.3

Date for Any Action 

In the event that any date on which any action is required to be taken hereunder by any of the parties hereto is not a business day, such action shall be required to be taken on the next succeeding day which is a business day.

9.4

Number, etc. 

Unless the context otherwise requires, works importing the singular number include the plural and vice versa, words importing the use of any gender include all genders, and words importing persons include firms and corporations and vice versa.

93

Miscellaneous 

This Agreement:

(a)

constitutes, together with the Binding Term Sheet and Addendum referred to and

incorporated herein, the entire agreement and supersedes all other prior agreements and understandings, both written and oral, among the parties, or any of them, with respect to the subject matter hereof;

shall be binding upon and enure to the benefit of the parties and their respective successors and assigns and is not intended to confer upon any other person any rights or remedies hereunder; and

may be executed in two or more counterparts which together shall constitute a 

single agreement. The parties shall be entitled to rely upon delivery of an 

executed facsimile copy of this Agreement, and such facsimile copy shall be

legally effective to create a valid and binding agreement between the parties

hereto.

- 31 -

9.6

Publicity

So long as this Agreement is in effect and except as required by applicable laws and the rules, regulations, and policies of any applicable stock exchange, each of the Purchaser and the Company promptly shall advise, consult, and cooperate with the other prior to issuing, or permitting any of its directors, officers, employees, or agents to issue, any press release or other statement to the media or to any third party with respect to this Agreement, the transactions contemplated hereby or any other matter. Each of the Purchaser and the Company may issue a press release or other written statement prior to receipt of consent from the other Party on the advise of counsel that such action is required by applicable law or by obligations pursuant to any listing agreement with the TSX Venture Exchange but only after using its reasonable commercial efforts to consult the other Party taking into account the time constraints to which it is subject as a result of such law or obligation.

The dissemination of any press release regarding this Agreement is governed by ¶ 2 of the Addendum to Binding Term Sheet, and shall continue to be so governed for the Term of this Agreement.

9.7

Assignment

Except as expressly permitted by the terms hereof, neither this Agreement nor any of the rights, interests, or obligations hereunder shall be assigned by either of the parties without the prior written consent of the other party. Notwithstanding the foregoing, the Purchaser may assign its rights under this Agreement to a wholly-owned subsidiary, in which event the Purchaser shall continue to be liable to the Company for any default in performance by such subsidiary.

9.8

Survival of Representations and Warranties 

The representations, warranties, covenants, and agreements made by the parties herein shall remain in full force and effect until the earlier of the termination of this Agreement or the Closing Date whereupon such representations and warranties shall expire and be of no further force or effect.

9.9

Time is of the Essence

Time is of the essence of this Agreement. 9.10 Currency 

Unless otherwise indicated, all sums of money referred to in this Agreement are expressed and shall be payable in United States dollars ("USD"). All payments shall be in immediately available funds.

9.11 Accounting Matters 

Unless otherwise indicated, all accounting terms used in this Agreement shall have the meanings attributable thereto under United States generally accepted accounting principles ("GAAP") and all determinations of an accounting nature required to be made shall be made in a manner consistent with GAAP.

- 32 -

9.12 Severability

Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law. Any provision of this Agreement that is invalid or unenforceable in any jurisdiction shall be ineffective to the extent of such invalidity or unenforceability without invalidating or rendering unenforceable the remaining provisions hereof, and any such invalidity or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

9.13 Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of Idaho and the federal laws of United States applicable therein. All actions shall be brought within the State of Idaho.

9.14 Attorney-Client Privilege

None of the terms or conditions of this Agreement shall be deemed a waiver of any attorney-client privilege or other privilege related to the transmission of information from the Company or the Purchaser to and from their respective attorneys.

9.15 Schedules 

The following Schedules attached to this Agreement are hereby incorporated by reference into this Agreement and form an integral part hereof:

Schedule A

Form of Post Petition Secured Financing Agreement.

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EXECUTION:

The Purchaser and the Company have caused this Agreernent to be executed as of the date. first written above by their respective officers thereunto duly authorized.

ALBERTA STAR DEVELOPMENT CORP.

Per.  

Tim Coupland, President and Chief Executive Officer

STERLING MINING COMPANY

Robert Higdem”

PER. 

Robert Higdem, General Manager

SCHEDULE A 

attached to and forming part of the Acquisition Agreement 

dated November 12, 2009, between 

Alberta Star Development Corp. and Sterling Mining Company

POST PETITION SECURED FINANCING AGREEMENT

Endnotes

(f)

the Plan shall, at or prior to the Closing Date, be in a form and substance satisfactory to the Purchaser, acting reasonably;

(vi)

redeem, purchase, or offer to purchase any Shares or other securities of the

Company, including under any normal course issuer bid;

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