Document:

<PAGE>   1

                                                                    EXHIBIT 10.8

                             REDBACK NETWORKS INC.

                          1999 DIRECTORS' OPTION PLAN

             (AS AMENDED AND RESTATED EFFECTIVE ________ __, 2000)

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                            Page
<S>                                                                                         <C>
ARTICLE 1.  INTRODUCTION.....................................................................1

ARTICLE 2.  ADMINISTRATION...................................................................1
        2.1  Committee Composition...........................................................1
        2.2  Committee Responsibilities......................................................1

ARTICLE 3.  SHARES AVAILABLE FOR GRANTS......................................................1
        3.1  Basic Limitation................................................................1
        3.2  Annual Increase in Shares.......................................................2
        3.3  Additional Shares...............................................................2

ARTICLE 4.  AUTOMATIC OPTION GRANTS TO NON-EMPLOYEE DIRECTORS................................2
        4.1  Eligibility.....................................................................2
        4.2  Initial Grants..................................................................2
        4.3  Annual Grants...................................................................2
        4.4  Exercise Price..................................................................2
        4.5  Exercisability and Term.........................................................3
        4.6  Affiliates of Non-Employee Directors............................................3
        4.7  Stock Option Agreement..........................................................3

ARTICLE 5.  PAYMENT FOR OPTION SHARES........................................................3
        5.1  Cash............................................................................3
        5.2  Surrender of Stock..............................................................3
        5.3  Exercise/Sale...................................................................3
        5.4  Other Forms of Payment..........................................................3

ARTICLE 6.  PROTECTION AGAINST DILUTION......................................................4
        6.1  Adjustments.....................................................................4
        6.2  Dissolution or Liquidation......................................................4
        9.3  Reorganizations.................................................................4

ARTICLE 7.  LIMITATION ON RIGHTS.............................................................4
        7.1  Stockholders' Rights............................................................4
        7.2  Regulatory Requirements.........................................................4
        7.3  Withholding Taxes...............................................................5

ARTICLE 8.  FUTURE OF THE PLAN...............................................................5
        8.1  Term of the Plan................................................................5
        8.2  Amendment or Termination........................................................5
</TABLE>

                                       i
<PAGE>   3

<TABLE>
<S>                                                                                          <C>
ARTICLE 9.  DEFINITIONS......................................................................5

ARTICLE 10.  EXECUTION.......................................................................7
</TABLE>

                                       ii
<PAGE>   4

                              REDBACK NETWORKS INC.

                           1999 DIRECTORS' OPTION PLAN

        ARTICLE 1. INTRODUCTION.

                The Plan was adopted by the Board effective as of the date of
the Company's initial public offering. The purpose of the Plan is to promote the
long-term success of the Company and the creation of stockholder value by (a)
encouraging Non-Employee Directors to focus on critical long-range objectives,
(b) encouraging the attraction and retention of Non-Employee Directors with
exceptional qualifications and (c) linking Non-Employee Directors directly to
stockholder interests through increased stock ownership. The Plan seeks to
achieve this purpose by providing for automatic and non-discretionary grants of
Options to Non-Employee Directors.

                The Plan shall be governed by, and construed in accordance with,
the laws of the State of Delaware (except their choice-of-law provisions).

        ARTICLE 2. ADMINISTRATION.

        2.1 COMMITTEE COMPOSITION. The Plan shall be administered by the
Committee. The Committee shall consist exclusively of two or more directors of
the Company, who shall be appointed by the Board. In addition, the composition
of the Committee shall satisfy such requirements as the Securities and Exchange
Commission may establish for administrators acting under plans intended to
qualify for exemption under Rule 16b-3 (or its successor) under the Exchange
Act.

        2.2 COMMITTEE RESPONSIBILITIES. The Committee shall interpret the Plan
and make all decisions relating to the operation of the Plan. The Committee may
adopt such rules or guidelines as it deems appropriate to implement the Plan.
The Committee's determinations under the Plan shall be final and binding on all
persons.

        ARTICLE 3. SHARES AVAILABLE FOR GRANTS.

        3.1 BASIC LIMITATION. Common Shares issued pursuant to the Plan may be
authorized but unissued shares or treasury shares. The aggregate number of
Common Shares subject to Options granted under the Plan shall not exceed

<PAGE>   5
(a) 800,000(1) plus (b) the additional Common Shares described in Sections 3.2
and 3.3. The limitations of this Section 3.1 and Section 3.2 shall be subject to
adjustment pursuant to Article 6.

        3.2 ANNUAL INCREASE IN SHARES. As of January 1 of each year, commencing
with the year 2001, the aggregate number of Common Shares available for the
grant of Options under the Plan shall automatically be increased by the number
necessary to cause the total number of Common Shares then available to be
restored to 800,000.

        3.3 ADDITIONAL SHARES. If Options are forfeited or terminate for any
other reason before being exercised, then the Common Shares subject to such
Options shall again become available for the grant of Options under the Plan.

        ARTICLE 4. AUTOMATIC OPTION GRANTS TO NON-EMPLOYEE DIRECTORS.

        4.1 ELIGIBILITY. Only Non-Employee Directors shall be eligible for the
grant of Options under the Plan.

        4.2 INITIAL GRANTS. Each Non-Employee Director who first becomes a
member of the Board after the date of the Company's initial public offering
shall receive a one-time grant of an Option covering 50,000(2) Common Shares
(subject to adjustment under Article 6) on the date when such Non-Employee
Director first joins the Board. Each Non-Employee Director who is a member of
the Board on the date of the Company's initial public offering, and who did not
previously receive an option to purchase Common Shares, shall receive a one-time
grant of an Option covering 50,000 Common Shares on the date of the Company's
initial public offering. A Non-Employee Director who previously was an Employee
shall not receive a grant under this Section 4.2.

        4.3 ANNUAL GRANTS. Upon the conclusion of each regular annual meeting of
the Company's stockholders held in the year 2000 or thereafter, each
Non-Employee Director who will continue serving as a member of the Board
thereafter shall receive an Option covering 20,000(3) Common Shares (subject to
adjustment under Article 6), except that such Option shall not be granted in the
calendar year in which the same Non-Employee Director received the Option
described in Section 4.2. A Non-Employee Director who previously was an Employee
shall be eligible to receive grants under this Section 4.3.

        4.4 EXERCISE PRICE. The Exercise Price under all Options granted to a
Non-Employee Director under this Article 4 shall be equal to 100% of

--------

(1) Reflects two-for-one stock split applicable to stockholders of record on
August 5, 1999. Also reflects increase from 400,000 shares approved by
stockholders on ______ __, 2000.
(2) Reflects two-for-one stock split applicable to stockholders of record on
August 5, 1999.
(3) Reflects two-for-one stock split applicable to stockholders of record on
August 5, 1999.

                                       2
<PAGE>   6

the Fair Market Value of a Common Share on the date of grant, payable in one of
the forms described in Article 5.

        4.5 EXERCISABILITY AND TERM. All or part of the Options granted to a
Non-Employee Director under this Article 4 may be exercised at any time prior to
expiration. The Common Shares acquired by exercising such Options shall be fully
vested. Such Options shall expire on the earlier of (a) the 10th anniversary of
the date of grant or (b) the date 12 months after the termination of such
Non-Employee Director's service for any reason.

        4.6 AFFILIATES OF NON-EMPLOYEE DIRECTORS. The Committee may provide that
the Options that otherwise would be granted to a Non-Employee Director under
this Article 4 shall instead be granted to an affiliate of such Non-Employee
Director. Such affiliate shall then be deemed to be a Non-Employee Director for
purposes of the Plan, provided that the service-related vesting and termination
provisions pertaining to the Options shall be applied with regard to the service
of the Non-Employee Director.

        4.7 STOCK OPTION AGREEMENT. Each grant of an Option under the Plan shall
be evidenced by a Stock Option Agreement between the Optionee and the Company.
Such Option shall be subject to all applicable terms of the Plan and may be
subject to any other terms that are not inconsistent with the Plan.

        ARTICLE 5. PAYMENT FOR OPTION SHARES.

        5.1 CASH. All or any part of the Exercise Price may be paid in cash or
cash equivalents.

        5.2 SURRENDER OF STOCK. All or any part of the Exercise Price may be
paid by surrendering, or attesting to the ownership of, Common Shares that are
already owned by the Optionee. Such Common Shares shall be valued at their Fair
Market Value on the date when the new Common Shares are purchased under the
Plan. The Optionee shall not surrender, or attest to the ownership of, Common
Shares in payment of the Exercise Price if such action would cause the Company
to recognize compensation expense (or additional compensation expense) with
respect to the Option for financial reporting purposes.

        5.3 EXERCISE/SALE. All or any part of the Exercise Price and any
withholding taxes may be paid by delivering (on a form prescribed by the
Company) an irrevocable direction to a securities broker approved by the Company
to sell all or part of the Common Shares being purchased under the Plan and to
deliver all or part of the sales proceeds to the Company.

        5.4 OTHER FORMS OF PAYMENT. At the sole discretion of the Committee, all
or any part of the Exercise Price and any withholding taxes may be paid in any
other form that is consistent with applicable laws, regulations and rules.

                                       3
<PAGE>   7

        ARTICLE 6. PROTECTION AGAINST DILUTION.

        6.1 ADJUSTMENTS. In the event of a subdivision of the outstanding Common
Shares, a declaration of a dividend payable in Common Shares, a declaration of a
dividend payable in a form other than Common Shares in an amount that has a
material effect on the price of Common Shares, a combination or consolidation of
the outstanding Common Shares (by reclassification or otherwise) into a lesser
number of Common Shares, a recapitalization, a spin-off or a similar occurrence,
the Committee shall make such adjustments as it, in its sole discretion, deems
appropriate in one or more of (a) the number of Common Shares available for
future grants under Article 3, (b) the number of Options to be granted to
Non-Employee Directors under Article 4, (c) the number of Common Shares covered
by each outstanding Option or (d) the Exercise Price under each outstanding
Option. Except as provided in this Article 6, an Optionee shall have no rights
by reason of any issue by the Company of stock of any class or securities
convertible into stock of any class, any subdivision or consolidation of shares
of stock of any class, the payment of any stock dividend or any other increase
or decrease in the number of shares of stock of any class.

        6.2 DISSOLUTION OR LIQUIDATION. To the extent not previously exercised,
Options shall terminate immediately prior to the dissolution or liquidation of
the Company.

        6.3 REORGANIZATIONS. In the event that the Company is a party to a
merger or other reorganization, outstanding Options shall be subject to the
agreement of merger or reorganization. Such agreement shall provide for (a) the
continuation of the outstanding Options by the Company, if the Company is a
surviving corporation, (b) the assumption of the outstanding Options by the
surviving corporation or its parent or subsidiary, (c) the substitution by the
surviving corporation or its parent or subsidiary of its own options for the
outstanding Options, (d) accelerated expiration of the outstanding Options or
(e) settlement of the full value of the outstanding Options in cash or cash
equivalents followed by cancellation of such Options.

        ARTICLE 7. LIMITATION ON RIGHTS.

        7.1 STOCKHOLDERS' RIGHTS. A Optionee shall have no dividend rights,
voting rights or other rights as a stockholder with respect to any Common Shares
covered by his or her Option prior to the time when he or she becomes entitled
to receive such Common Shares by filing a notice of exercise and paying the
Exercise Price. No adjustment shall be made for cash dividends or other rights
for which the record date is prior to such time, except as expressly provided in
the Plan.

        7.2 REGULATORY REQUIREMENTS. Any other provision of the Plan
notwithstanding, the obligation of the Company to issue

                                       4
<PAGE>   8

Common Shares under the Plan shall be subject to all applicable laws, rules and
regulations and such approval by any regulatory body as may be required. The
Company reserves the right to restrict, in whole or in part, the delivery of
Common Shares pursuant to any Option prior to the satisfaction of all legal
requirements relating to the issuance of such Common Shares, to their
registration, qualification or listing or to an exemption from registration,
qualification or listing.

        7.3 WITHHOLDING TAXES. To the extent required by applicable federal,
state, local or foreign law, an Optionee or his or her successor shall make
arrangements satisfactory to the Company for the satisfaction of any withholding
tax obligations that arise in connection with the Plan. The Company shall not be
required to issue any Common Shares or make any cash payment under the Plan
until such obligations are satisfied.

        ARTICLE 8. FUTURE OF THE PLAN.

        8.1 TERM OF THE PLAN. The Plan shall become effective on the date of the
Company's initial public offering. The Plan shall remain in effect until it is
terminated under Section 8.2.

        8.2 AMENDMENT OR TERMINATION. The Board may, at any time and for any
reason, amend or terminate the Plan. An amendment of the Plan shall be subject
to the approval of the Company's stockholders only to the extent required by
applicable laws, regulations or rules. No Options shall be granted under the
Plan after the termination thereof. The termination of the Plan, or any
amendment thereof, shall not affect any Option previously granted under the
Plan.

        ARTICLE 9. DEFINITIONS.

        9.1 "BOARD" means the Company's Board of Directors, as constituted from
time to time.

        9.2 "CODE" means the Internal Revenue Code of 1986, as amended.

        9.3 "COMMITTEE" means a committee of the Board, as described in Article
2.

        9.4 "COMMON SHARE" means one share of the common stock of the Company.

        9.5 "COMPANY" means Redback Networks Inc., a Delaware corporation.

        9.6 "EMPLOYEE" means a common-law employee of the Company, a Parent or a
Subsidiary.

        9.7 "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended.

                                       5
<PAGE>   9

        9.8 "EXERCISE PRICE" means the amount for which one Common Share may be
purchased upon exercise of such Option, as specified in the applicable Stock
Option Agreement.

        9.9 "FAIR MARKET VALUE" means the market price of Common Shares,
determined by the Committee in good faith on such basis as it deems appropriate.
The Committee's determination of Fair Market Value by shall be based on the
prices reported in The Wall Street Journal whenever possible, except that the
Fair Market Value on the date of the Company's initial public offering shall be
equal to the price of Common Shares to the public in such offering. Such
determination shall be conclusive and binding on all persons.

        9.10 "NON-EMPLOYEE DIRECTOR" means a member of the Board who is not an
Employee.

        9.11 "OPTION" means an option granted under the Plan and entitling the
holder to purchase Common Shares. Options do not qualify as incentive stock
options described in section 422(b) of the Code.

        9.12 "OPTIONEE" means an individual or estate who holds an Option.

        9.13 "PARENT" means 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. A corporation that attains the status of a Parent on
a date after the adoption of the Plan shall be considered a Parent commencing as
of such date.

        9.14 "PLAN" means this Redback Networks Inc. 1999 Directors' Option
Plan, as amended from time to time.

        9.15 "STOCK OPTION AGREEMENT" means the agreement between the Company
and an Optionee that contains the terms, conditions and restrictions pertaining
to his or her Option.

        9.16 "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
possessing 50% or more of the total combined voting power of all classes of
stock in one of the other corporations in such chain. A corporation that attains
the status of a Subsidiary on a date after the adoption of the Plan shall be
considered a Subsidiary commencing as of such date.

                                       6
<PAGE>   10

        ARTICLE 10. EXECUTION.

        To record the amendment and restatement of the Plan by the Board on
________ __, 2000, the Company has caused its duly authorized officer to execute
this document in the name of the Company.

                                            REDBACK NETWORKS INC.

                                            By:
                                               ---------------------------------

                                            Title:
                                                  ------------------------------

                                       7<PAGE>   1
                                                                    EXHIBIT 10.9
                             REDBACK NETWORKS INC.

                        1999 EMPLOYEE STOCK PURCHASE PLAN

               (AS AMENDED AND RESTATED EFFECTIVE ______ __, 2000)

<PAGE>   2

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                      Page
                                                                      ----
<S>                                                                   <C>
SECTION 1.  PURPOSE OF THE PLAN ............................            1

SECTION 2.  ADMINISTRATION OF THE PLAN .....................            1
        (a) Committee Composition ..........................            1
        (b) Committee Responsibilities .....................            1

SECTION 3.  ENROLLMENT AND PARTICIPATION ...................            1
        (a) Offering Periods ...............................            1
        (b) Accumulation Periods ...........................            1
        (c) Enrollment .....................................            1
        (d) Duration of Participation ......................            2
        (e) Applicable Offering Period .....................            2

SECTION 4.  EMPLOYEE CONTRIBUTIONS .........................            2
        (a) Frequency of Payroll Deductions ................            2
        (b) Amount of Payroll Deductions ...................            3
        (c) Changing Withholding Rate ......................            3
        (d) Discontinuing Payroll Deductions ...............            3
        (e) Limit on Number of Elections ...................            3

SECTION 5.  WITHDRAWAL FROM THE PLAN .......................            3
        (a) Withdrawal .....................................            3
        (b) Re-Enrollment After Withdrawal .................            3

SECTION 6.  CHANGE IN EMPLOYMENT STATUS ....................            3
        (a) Termination of Employment ......................            3
        (b) Leave of Absence ...............................            4
        (c) Death ..........................................            4

SECTION 7.  PLAN ACCOUNTS AND PURCHASE OF SHARES ...........            4
        (a) Plan Accounts ..................................            4
        (b) Purchase Price .................................            4
        (c) Number of Shares Purchased .....................            4
        (d) Available Shares Insufficient ..................            5
        (e) Issuance of Stock ..............................            5
        (f) Unused Cash Balances ...........................            5
        (g) Stockholder Approval ...........................            5

SECTION 8.  LIMITATIONS ON STOCK OWNERSHIP .................            5
        (a) Five Percent Limit .............................            5
        (b) Dollar Limit ...................................            6
</TABLE>

                                       i
<PAGE>   3

<TABLE>
<S>                                                                    <C>
SECTION 9.  RIGHTS NOT TRANSFERABLE ........................            6

SECTION 10. NO RIGHTS AS AN EMPLOYEE .......................            7

SECTION 11. NO RIGHTS AS A STOCKHOLDER .....................            7

SECTION 12. SECURITIES LAW REQUIREMENTS ....................            7

SECTION 13. STOCK OFFERED UNDER THE PLAN ...................            7
        (a) Authorized Shares ..............................            7
        (b) Anti-Dilution Adjustments ......................            7
        (c) Reorganizations ................................            8

SECTION 14. AMENDMENT OR DISCONTINUANCE ....................            8

SECTION 15. DEFINITIONS ....................................            8
        (a) Accumulation Period ............................            8
        (b) Board ..........................................            8
        (c) Code ...........................................            8
        (d) Committee ......................................            8
        (e) Company ........................................            8
        (f) Compensation ...................................            8
        (g) Corporate Reorganization .......................            9
        (h) Eligible Employee ..............................            9
        (i) Exchange Act ...................................            9
        (j) Fair Market Value ..............................            9
        (k) IPO ............................................            9
        (l) Offering Period ................................           10
        (m) Participant ....................................           10
        (n) Participating Company ..........................           10
        (o) Plan ...........................................           10
        (p) Plan Account ...................................           10
        (q) Purchase Price .................................           10
        (r) Stock ..........................................           10
        (s) Subsidiary .....................................           10

SECTION 15. EXECUTION ......................................           10

</TABLE>

                                       ii
<PAGE>   4

                              REDBACK NETWORKS INC.
                        1999 EMPLOYEE STOCK PURCHASE PLAN

SECTION 1.        PURPOSE OF THE PLAN.

       The Plan was adopted by the Board effective as of the date of the IPO.
The purpose of the Plan is to provide Eligible Employees with an opportunity to
increase their proprietary interest in the success of the Company by purchasing
Stock from the Company on favorable terms and to pay for such purchases through
payroll deductions. The Plan is intended to qualify under section 423 of the
Code.

SECTION 2.        ADMINISTRATION OF THE PLAN.

       (a) COMMITTEE COMPOSITION. The Plan shall be administered by the
Committee. The Committee shall consist exclusively of one or more directors of
the Company, who shall be appointed by the Board.

       (b) COMMITTEE RESPONSIBILITIES. The Committee shall interpret the Plan
and make all other policy decisions relating to the operation of the Plan. The
Committee may adopt such rules, guidelines and forms as it deems appropriate to
implement the Plan. The Committee's determinations under the Plan shall be final
and binding on all persons.

SECTION 3.        ENROLLMENT AND PARTICIPATION.

       (a) OFFERING PERIODS. While the Plan is in effect, two overlapping
Offering Periods shall commence in each calendar year. The Offering Periods
shall consist of the 24-month periods commencing on each May 1 and November 1,
except that the first Offering Period shall commence on the date of the IPO and
end on April 30, 2001.

       (b) ACCUMULATION PERIODS. While the Plan is in effect, two Accumulation
Periods shall commence in each calendar year. The Accumulation Periods shall
consist of the six-month periods commencing on each May 1 and November 1, except
that the first Accumulation Period shall commence on the date of the IPO and end
on October 31, 1999.

       (c) ENROLLMENT. Any individual who, on the day preceding the first day of
an Offering Period, qualifies as an Eligible Employee may elect to become a
Participant in the Plan for such Offering Period by executing the enrollment
form prescribed for this purpose by the Committee. The enrollment form shall be
filed with the Company at the prescribed location not later than five business
days prior to the commencement of such Offering Period.

       (d) DURATION OF PARTICIPATION. Once enrolled in the Plan, a Participant
shall continue to participate in the Plan until he or she ceases to be an
Eligible Employee, withdraws from the Plan under Section 5(a) or reaches the end
of the Accumulation Period in which his or her employee contributions were
discontinued under Section 4(d) or 8(b). A Participant who
<PAGE>   5

discontinued employee contributions under Section 4(d) or withdrew from the Plan
under Section 5(a) may again become a Participant, if he or she then is an
Eligible Employee, by following the procedure described in Subsection (c) above.
A Participant whose employee contributions were discontinued automatically under
Section 8(b) shall automatically resume participation at the beginning of the
earliest Accumulation Period ending in the next calendar year, if he or she then
is an Eligible Employee.

       (e) APPLICABLE OFFERING PERIOD. For purposes of calculating the Purchase
Price under Section 7(b), the applicable Offering Period shall be determined as
follows:

              (i) Once a Participant is enrolled in the Plan for an Offering
       Period, such Offering Period shall continue to apply to him or her until
       the earliest of (A) the end of such Offering Period, (B) the end of his
       or her participation under Subsection (d) above or (C) re-enrollment for
       a subsequent Offering Period under Paragraph (ii) or (iii) below.

              (ii) In the event that the Fair Market Value of Stock on the last
       trading day before the commencement of the Offering Period for which the
       Participant is enrolled is higher than on the last trading day before the
       commencement of any subsequent Offering Period, the Participant shall
       automatically be re-enrolled for such subsequent Offering Period.

              (iii) Any other provision of the Plan notwithstanding, the Company
       (at its sole discretion) may determine prior to the commencement of any
       new Offering Period that all Participants shall be re-enrolled for such
       new Offering Period.

              (iv) When a Participant reaches the end of an Offering Period but
       his or her participation is to continue, then such Participant shall
       automatically be re-enrolled for the Offering Period that commences
       immediately after the end of the prior Offering Period.

SECTION 4.        EMPLOYEE CONTRIBUTIONS.

       (a) FREQUENCY OF PAYROLL DEDUCTIONS. A Participant may purchase shares of
Stock under the Plan solely by means of payroll deductions. Payroll deductions,
as designated by the Participant pursuant to Subsection (b) below, shall occur
on each payday during participation in the Plan.

       (b) AMOUNT OF PAYROLL DEDUCTIONS. An Eligible Employee shall designate on
the enrollment form the portion of his or her Compensation that he or she elects
to have withheld for the purchase of Stock. Such portion shall be a whole
percentage of the Eligible Employee's Compensation, but not less than 1% nor
more than 15%.

       (c) CHANGING WITHHOLDING RATE. If a Participant wishes to change the rate
of payroll withholding, he or she may do so by filing a new enrollment form with
the Company at the prescribed location at any time. The new withholding rate
shall be effective as soon as

                                       2
<PAGE>   6

reasonably practicable after such form has been received by the Company. The new
withholding rate shall be a whole percentage of the Eligible Employee's
Compensation, but not less than 1% nor more than 15%.

       (d) DISCONTINUING PAYROLL DEDUCTIONS. If a Participant wishes to
discontinue employee contributions entirely, he or she may do so by filing a new
enrollment form with the Company at the prescribed location at any time. Payroll
withholding shall cease as soon as reasonably practicable after such form has
been received by the Company. (In addition, employee contributions may be
discontinued automatically pursuant to Section 8(b).) A Participant who has
discontinued employee contributions may resume such contributions by filing a
new enrollment form with the Company at the prescribed location. Payroll
withholding shall resume as soon as reasonably practicable after such form has
been received by the Company.

       (e) LIMIT ON NUMBER OF ELECTIONS. No Participant shall make more than two
elections under Subsection (c) or (d) above during any Accumulation Period.

SECTION 5.        WITHDRAWAL FROM THE PLAN.

       (a) WITHDRAWAL. A Participant may elect to withdraw from the Plan by
filing the prescribed form with the Company at the prescribed location at any
time before the last day of an Accumulation Period. As soon as reasonably
practicable thereafter, payroll deductions shall cease and the entire amount
credited to the Participant's Plan Account shall be refunded to him or her in
cash, without interest. No partial withdrawals shall be permitted.

       (b) RE-ENROLLMENT AFTER WITHDRAWAL. A former Participant who has
withdrawn from the Plan shall not be a Participant until he or she re-enrolls in
the Plan under Section 3(c). Re-enrollment may be effective only at the
commencement of an Offering Period.

SECTION 6.        CHANGE IN EMPLOYMENT STATUS.

       (a) TERMINATION OF EMPLOYMENT. Termination of employment as an Eligible
Employee for any reason, including death, shall be treated as an automatic
withdrawal from the Plan under Section 5(a). (A transfer from one Participating
Company to another shall not be treated as a termination of employment.)

       (b) LEAVE OF ABSENCE. For purposes of the Plan, employment shall not be
deemed to terminate when the Participant goes on a military leave, a sick leave
or another bona fide leave of absence, if the leave was approved by the Company
in writing. Employment, however, shall be deemed to terminate 90 days after the
Participant goes on a leave, unless a contract or statute guarantees his or her
right to return to work. Employment shall be deemed to terminate in any event
when the approved leave ends, unless the Participant immediately returns to
work.

       (c) DEATH. In the event of the Participant's death, the amount credited
to his or her Plan Account shall be paid to a beneficiary designated by him or
her for this purpose on the prescribed form or, if none, to the Participant's
estate. Such form shall be valid only if it was filed with the Company at the
prescribed location before the Participant's death.

                                       3
<PAGE>   7

SECTION 7.        PLAN ACCOUNTS AND PURCHASE OF SHARES.

       (a) PLAN ACCOUNTS. The Company shall maintain a Plan Account on its books
in the name of each Participant. Whenever an amount is deducted from the
Participant's Compensation under the Plan, such amount shall be credited to the
Participant's Plan Account. Amounts credited to Plan Accounts shall not be trust
funds and may be commingled with the Company's general assets and applied to
general corporate purposes. No interest shall be credited to Plan Accounts.

       (b) PURCHASE PRICE. The Purchase Price for each share of Stock purchased
at the close of an Accumulation Period shall be the lower of:

              (i) 85% of the Fair Market Value of such share on the last trading
       day in such Accumulation Period; or

              (ii) 85% of the Fair Market Value of such share on the last
       trading day before the commencement of the applicable Offering Period (as
       determined under Section 3(e)) or, in the case of the first Offering
       Period under the Plan, 85% of the price at which one share of Stock is
       offered to the public in the IPO.

       (c) NUMBER OF SHARES PURCHASED. As of the last day of each Accumulation
Period, each Participant shall be deemed to have elected to purchase the number
of shares of Stock calculated in accordance with this Subsection (c), unless the
Participant has previously elected to withdraw from the Plan in accordance with
Section 5(a). The amount then in the Participant's Plan Account shall be divided
by the Purchase Price, and the number of shares that results shall be purchased
from the Company with the funds in the Participant's Plan Account. The foregoing
notwithstanding, no Participant shall purchase more than 2,000(1) shares of
Stock with respect to any Accumulation Period nor more than the amounts of Stock
set forth in Sections 8(b) and 13(a). The Committee may determine with respect
to all Participants that any fractional share, as calculated under this
Subsection (c), shall be (i) rounded down to the next lower whole share or (ii)
credited as a fractional share.

       (d) AVAILABLE SHARES INSUFFICIENT. In the event that the aggregate number
of shares that all Participants elect to purchase during an Accumulation Period
exceeds the maximum number of shares remaining available for issuance under
Section 13(a), then the number of shares to which each Participant is entitled
shall be determined by multiplying the number of shares available for issuance
by a fraction, the numerator of which is the number of shares that such
Participant has elected to purchase and the denominator of which is the number
of shares that all Participants have elected to purchase.

       (e) ISSUANCE OF STOCK. Certificates representing the shares of Stock
purchased by a Participant under the Plan shall be issued to him or her as soon
as reasonably practicable after the close of the applicable Accumulation Period,
except that the Committee may determine that such shares shall be held for each
Participant's benefit by a broker designated by the Committee (unless the
Participant has elected that certificates be issued to him or her). Shares may
be

------------------------
(1) Reflects two-for-one stock split applicable to stockholders of record on
    August 5, 1999.

                                       4
<PAGE>   8

registered in the name of the Participant or jointly in the name of the
Participant and his or her spouse as joint tenants with right of survivorship or
as community property.

       (f) UNUSED CASH BALANCES. An amount remaining in the Participant's Plan
Account that represents the Purchase Price for any fractional share shall be
carried over in the Participant's Plan Account to the next Accumulation Period.
Any amount remaining in the Participant's Plan Account that represents the
Purchase Price for whole shares that could not be purchased by reason of
Subsection (c) above, Section 8(b) or Section 13(a) shall be refunded to the
Participant in cash, without interest.

       (g) STOCKHOLDER APPROVAL. Any other provision of the Plan
notwithstanding, no shares of Stock shall be purchased under the Plan unless and
until the Company's stockholders have approved the adoption of the Plan.

SECTION 8.        LIMITATIONS ON STOCK OWNERSHIP.

       (a) FIVE PERCENT LIMIT. Any other provision of the Plan notwithstanding,
no Participant shall be granted a right to purchase Stock under the Plan if such
Participant, immediately after his or her election to purchase such Stock, would
own stock possessing more than 5% of the total combined voting power or value of
all classes of stock of the Company or any parent or Subsidiary of the Company.
For purposes of this Subsection (a), the following rules shall apply:

              (i) Ownership of stock shall be determined after applying the
       attribution rules of section 424(d) of the Code;

              (ii) Each Participant shall be deemed to own any stock that he or
       she has a right or option to purchase under this or any other plan; and

              (iii) Each Participant shall be deemed to have the right to
       purchase 2,000 shares of Stock under this Plan with respect to each
       Accumulation Period.

       (b) DOLLAR LIMIT. Any other provision of the Plan notwithstanding, no
Participant shall purchase Stock with a Fair Market Value in excess of the
following limit:

              (i) In the case of Stock purchased during an Offering Period that
       commenced in the current calendar year, the limit shall be equal to (A)
       $25,000 minus (B) the Fair Market Value of the Stock that the Participant
       previously purchased in the current calendar year (under this Plan and
       all other employee stock purchase plans of the Company or any parent or
       Subsidiary of the Company).

              (ii) In the case of Stock purchased during an Offering Period that
       commenced in the immediately preceding calendar year, the limit shall be
       equal to (A) $50,000 minus (B) the Fair Market Value of the Stock that
       the Participant previously purchased (under this Plan and all other
       employee stock purchase

                                       5
<PAGE>   9

       plans of the Company or any parent or Subsidiary of the Company) in the
       current calendar year and in the immediately preceding calendar year.

              (iii) In the case of Stock purchased during an Offering Period
       that commenced in the second preceding calendar year, the limit shall be
       equal to (A) $75,000 minus (B) the Fair Market Value of the Stock that
       the Participant previously purchased (under this Plan and all other
       employee stock purchase plans of the Company or any parent or Subsidiary
       of the Company) in the current calendar year and in the two preceding
       calendar years.

For purposes of this Subsection (b), the Fair Market Value of Stock shall be
determined in each case as of the beginning of the Offering Period in which such
Stock is purchased. Employee stock purchase plans not described in section 423
of the Code shall be disregarded. If a Participant is precluded by this
Subsection (b) from purchasing additional Stock under the Plan, then his or her
employee contributions shall automatically be discontinued and shall resume at
the beginning of the earliest Accumulation Period ending in the next calendar
year (if he or she then is an Eligible Employee).

SECTION 9.        RIGHTS NOT TRANSFERABLE.

       The rights of any Participant under the Plan, or any Participant's
interest in any Stock or moneys to which he or she may be entitled under the
Plan, shall not be transferable by voluntary or involuntary assignment or by
operation of law, or in any other manner other than by beneficiary designation
or the laws of descent and distribution. If a Participant in any manner attempts
to transfer, assign or otherwise encumber his or her rights or interest under
the Plan, other than by beneficiary designation or the laws of descent and
distribution, then such act shall be treated as an election by the Participant
to withdraw from the Plan under Section 5(a).

SECTION 10.       NO RIGHTS AS AN EMPLOYEE.

       Nothing in the Plan or in any right granted under the Plan shall confer
upon the Participant any right to continue in the employ of a Participating
Company for any period of specific duration or interfere with or otherwise
restrict in any way the rights of the Participating Companies or of the
Participant, which rights are hereby expressly reserved by each, to terminate
his or her employment at any time and for any reason, with or without cause.

SECTION 11.       NO RIGHTS AS A STOCKHOLDER.

       A Participant shall have no rights as a stockholder with respect to any
shares of Stock that he or she may have a right to purchase under the Plan until
such shares have been purchased on the last day of the applicable Accumulation
Period.

SECTION 12.       SECURITIES LAW REQUIREMENTS.

       Shares of Stock shall not be issued under the Plan unless the issuance
and delivery of such shares comply with (or are exempt from) all applicable
requirements of law, including

                                       6
<PAGE>   10

(without limitation) the Securities Act of 1933, as amended, the rules and
regulations promulgated thereunder, state securities laws and regulations, and
the regulations of any stock exchange or other securities market on which the
Company's securities may then be traded.

SECTION 13.       STOCK OFFERED UNDER THE PLAN.

       (a) AUTHORIZED SHARES. The number of shares of Stock available for
purchase under the Plan shall be 3,000,000(2) (subject to adjustment pursuant to
this Section 13). On May 1 of each year, commencing with May 1, 2000, the
aggregate number of shares of Stock available for purchase during the life of
the Plan shall automatically be increased by the number of shares necessary to
cause the number of shares then available for purchase to be restored to
3,000,000 (subject to adjustment pursuant to this Section 13).

       (b) ANTI-DILUTION ADJUSTMENTS. The aggregate number of shares of Stock
offered under the Plan, the 2,000-share limitation described in Section 7(c) and
the price of shares that any Participant has elected to purchase shall be
adjusted proportionately by the Committee for any increase or decrease in the
number of outstanding shares of Stock resulting from a subdivision or
consolidation of shares or the payment of a stock dividend, any other increase
or decrease in such shares effected without receipt or payment of consideration
by the Company, the distribution of the shares of a Subsidiary to the Company's
stockholders or a similar event.

       (c) REORGANIZATIONS. Any other provision of the Plan notwithstanding,
immediately prior to the effective time of a Corporate Reorganization, the
Offering Period and Accumulation Period then in progress shall terminate and
shares shall be purchased pursuant to Section 7, unless the Plan is continued or
assumed by the surviving corporation or its parent corporation. The Plan shall
in no event be construed to restrict in any way the Company's right to undertake
a dissolution, liquidation, merger, consolidation or other reorganization.

SECTION 14.       AMENDMENT OR DISCONTINUANCE.

       The Board shall have the right to amend, suspend or terminate the Plan at
any time and without notice. Except as provided in Section 13, any increase in
the aggregate number of shares of Stock to be issued under the Plan shall be
subject to approval by a vote of the stockholders of the Company. In addition,
any other amendment of the Plan shall be subject to approval by a vote of the
stockholders of the Company to the extent required by an applicable law or
regulation. The Plan shall terminate automatically 20 years after its adoption
by the Board, unless (a) the Plan is extended by the Board and (b) the extension
is approved within 12 months by a vote of the stockholders of the Company.

SECTION 15.       DEFINITIONS.

       (a) "ACCUMULATION PERIOD" means a six-month period during which
contributions may be made toward the purchase of Stock under the Plan, as
determined pursuant to Section 3(b).

------------------------
(2) Reflects two-for-one stock split applicable to stockholders of record on
    August 5, 1999. Also reflects increase from 2,000,000 shares approved by
    stockholders on ______ __, 2000.

                                       7
<PAGE>   11

       (b) "BOARD" means the Board of Directors of the Company, as constituted
from time to time.

       (c) "CODE" means the Internal Revenue Code of 1986, as amended.

       (d) "COMMITTEE" means a committee of the Board, as described in Section
2.

       (e) "COMPANY" means Redback Networks Inc., a Delaware corporation.

       (f) "COMPENSATION" means (i) the total compensation paid in cash to a
Participant by a Participating Company, including salaries, wages, bonuses,
incentive compensation, commissions, overtime pay and shift premiums, plus (ii)
any pre-tax contributions made by the Participant under section 401(k) or 125 of
the Code. "Compensation" shall exclude all non-cash items, moving or relocation
allowances, cost-of-living equalization payments, car allowances, tuition
reimbursements, imputed income attributable to cars or life insurance, severance
pay, fringe benefits, contributions or benefits received under employee benefit
plans, income attributable to the exercise of stock options, and similar items.
The Committee shall determine whether a particular item is included in
Compensation.

       (g) "CORPORATE REORGANIZATION" means:

              (i) The consummation of a merger or consolidation of the Company
       with or into another entity or any other corporate reorganization; or

              (ii) The sale, transfer or other disposition of all or
       substantially all of the Company's assets or the complete liquidation or
       dissolution of the Company.

       (h) "ELIGIBLE EMPLOYEE" means any employee of a Participating Company
whose customary employment is for more than five months per calendar year and
for more than 20 hours per week. The foregoing notwithstanding, an individual
shall not be considered an Eligible Employee if his or her participation in the
Plan is prohibited by the law of any country which has jurisdiction over him or
her or if he or she is subject to a collective bargaining agreement that does
not provide for participation in the Plan.

       (i) "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended.

       (j) "FAIR MARKET VALUE" means the market price of Stock, determined by
the Committee as follows:

              (i) If the Stock was traded on The Nasdaq National Market on the
       date in question, then the Fair Market Value shall be equal to the
       last-transaction price quoted for such date by The Nasdaq National
       Market;

              (ii) If the Stock was traded on a stock exchange on the date in
       question, then the Fair Market Value shall be equal to the closing price
       reported by the applicable composite transactions report for such date;
       or

                                       8
<PAGE>   12

              (iii) If none of the foregoing provisions is applicable, then the
       Fair Market Value shall be determined by the Committee in good faith on
       such basis as it deems appropriate.

Whenever possible, the determination of Fair Market Value by the Committee shall
be based on the prices reported in The Wall Street Journal or as reported
directly to the Company by Nasdaq or a stock exchange. Such determination shall
be conclusive and binding on all persons.

       (k) "IPO" means the initial offering of Stock to the public pursuant to a
registration statement filed by the Company with the Securities and Exchange
Commission.

       (l) "OFFERING PERIOD" means a 24-month period with respect to which the
right to purchase Stock may be granted under the Plan, as determined pursuant to
Section 3(a).

       (m) "PARTICIPANT" means an Eligible Employee who elects to participate in
the Plan, as provided in Section 3(c).

       (n) "PARTICIPATING COMPANY" means (i) the Company and (ii) each present
or future Subsidiary designated by the Committee as a Participating Company.

       (o) "PLAN" means this Redback Networks Inc. 1999 Employee Stock Purchase
Plan, as it may be amended from time to time.

       (p) "PLAN ACCOUNT" means the account established for each Participant
pursuant to Section 7(a).

       (q) "PURCHASE PRICE" means the price at which Participants may purchase
Stock under the Plan, as determined pursuant to Section 7(b).

       (r) "STOCK" means the Common Stock of the Company.

       (s) "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
possessing 50% or more of the total combined voting power of all classes of
stock in one of the other corporations in such chain.

                                       9
<PAGE>   13

SECTION 16.       EXECUTION.

       To record the amendment and restatement of the Plan by the Board on
______ __, 2000, the Company has caused its duly authorized officer to execute
this document in the name of the Company.

                                       REDBACK NETWORKS INC.

                                       By:
                                          --------------------------------------
                                       Title:
                                             -----------------------------------

                                       10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00001-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00001-of-00352.parquet"}]]