Document:

2006 Director Option Plan

 Exhibit 10.6 
 RIVERBED TECHNOLOGY, INC. 
 2006
DIRECTOR OPTION PLAN 
 (AS ADOPTED EFFECTIVE
UPON THE IPO) 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	ARTICLE 1.	  	INTRODUCTION	  	1
			
	ARTICLE 2.	  	ADMINISTRATION	  	1
	 2.1
	  	Committee Composition	  	1
	 2.2
	  	Committee Responsibilities	  	1
			
	ARTICLE 3.	  	SHARES AVAILABLE FOR GRANTS	  	2
	 3.1
	  	Basic Limitation	  	2
	 3.2
	  	Annual Increase in Shares	  	2
	 3.3
	  	Shares Returned to Reserve	  	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
	  	Accelerated Exercisability	  	3
	 4.5
	  	Exercise Price	  	3
	 4.6
	  	Term	  	3
	 4.7
	  	Affiliates of Non-Employee Directors	  	3
	 4.8
	  	Stock Option Agreement	  	3
			
	ARTICLE 5.	  	PAYMENT FOR OPTION SHARES	  	3
	 5.1
	  	General Rule	  	3
	 5.2
	  	Surrender of Stock	  	3
	 5.3
	  	Exercise/Sale	  	3
	 5.4
	  	Other Forms of Payment	  	4
			
	ARTICLE 6.	  	PROTECTION AGAINST DILUTION	  	4
	 6.1
	  	Adjustments	  	4
	 6.2
	  	Dissolution or Liquidation	  	4
	 6.3
	  	Reorganizations	  	4
			
	ARTICLE 7.	  	LIMITATION ON RIGHTS	  	5
	 7.1
	  	Stockholders’ Rights	  	5
	 7.2
	  	Regulatory Requirements	  	5
	 7.3
	  	Withholding Taxes	  	5
			
	ARTICLE 8.	  	FUTURE OF THE PLAN	  	6
	 8.1
	  	Term of the Plan	  	6
	 8.2
	  	Amendment or Termination	  	6
			
	ARTICLE 9.	  	DEFINITIONS	  	6

  

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 RIVERBED TECHNOLOGY, INC. 
 2006 DIRECTOR OPTION PLAN 
 ARTICLE 1. INTRODUCTION. 
 The Board adopted the Plan to be effective at the IPO. 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 Committee shall administer the Plan. The Committee shall consist exclusively of two or more directors of the
Company, who shall be appointed by the Board. In addition, each member of the Committee shall meet the following requirements: 
 (a) Any listing standards prescribed by the principal securities market on which the Company’s equity securities are traded; 
 (b) Such requirements as the Internal Revenue Service may establish for outside directors acting under plans intended to qualify for exemption under section 162(m)(4)(C) of the Code; 
 (c) 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; and 
 (d) Any other requirements imposed by
applicable law, regulations or rules. 
 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 issued under the Plan shall not exceed (a) 500,000 plus (b) the additional Common Shares described in Sections 3.2 and 3.3. The number of Common Shares that are subject to Options outstanding at any time under the
Plan shall not exceed the number of Common Shares that then remain available for issuance under the Plan. 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 the first day of each fiscal year of the Company, commencing on January 1, 2007, the aggregate number of
Common Shares that may be issued under the Plan shall automatically increase by 250,000 Common Shares. 
 3.3 Shares Returned to
Reserve. 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 issuance 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 IPO shall receive a one-time grant of an Option covering 60,000 Common Shares. In addition, each Non-Employee Director who first becomes a member of
the Board after the date of the IPO and who will serve on the Audit Committee shall receive a one-time grant of an Option covering 10,000 Common Shares and each such Non-Employee Director who will also serve as the chairman of the Audit Committee
shall receive another one-time grant of an Option covering an additional 10,000 Common Shares (for a total of 20,000 Common Shares). Such Option(s) shall be granted on the date such Non-Employee Director first joins the Board. Subject to the
Non-Employee Director’s continuing Service, Options granted under this Section 4.2 shall become exercisable in equal monthly installments over the 48-month period commencing on the date of grant. 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 2007 or thereafter, each Non-Employee Director who will continue serving as a member of the Board thereafter shall receive an Option covering 20,000 Common Shares. In addition, each
Non-Employee Director who shall continue to be a member of the Audit Committee shall receive an Option covering 8,000 Common Shares and each such Non-Employee Director who will continue to serve as chairman of the Audit Committee shall receive
another Option covering an additional 4,000 Common Shares (for a total of 12,000 Common Shares). Notwithstanding the foregoing, no Options shall be granted pursuant to this Section 4.3 in the calendar year in which the same Non-Employee
Director received the Option(s) described in Section 4.2. Subject to the Non-Employee Director’s 

  

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continuing Service, Options granted under this Section 4.3 shall become exercisable in equal monthly installments over the 48-month period commencing on
the date of grant. A Non-Employee Director who previously was an Employee shall be eligible to receive grants under this Section 4.3. 
 4.4 Accelerated Exercisability. All Options granted to a Non-Employee Director under this Article 4 shall also become exercisable in full in the event that the Company is subject to a Change in Control before such Non-Employee
Director’s Service terminates. Acceleration of exercisability may also be required by Section 6.3. 
 4.5 Exercise Price.
The Exercise Price under all Options granted to a Non-Employee Director under this Article 4 shall be equal to 100% of the Fair Market Value of a Common Share on the date of grant, payable in one of the forms described in Article 5.

 4.6 Term. All Options granted to a Non-Employee Director under this Article 4 shall terminate on the earliest 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. 
 4.7 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. 
 4.8 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 General
Rule. The entire Exercise Price of Common Shares issued upon exercise of Options shall be payable in cash or cash equivalents at the time when such Common Shares are purchased, except that the Committee at its sole discretion may accept payment
of the Exercise Price in any other form(s) described in this Article 5. However, the Optionee may pay the Exercise Price in a form other than cash or cash equivalents only to the extent permitted by section 13(k) of the Exchange Act.

 5.2 Surrender of Stock. With the Committee’s consent, 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 the new Common Shares are purchased under the Plan. 
 5.3 Exercise/Sale. With the Committee’s consent, 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 

  

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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. With the Committee’s consent, 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. 
 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 or a
combination or consolidation of the outstanding Common Shares (by reclassification or otherwise) into a lesser number of Common Shares, corresponding adjustments shall automatically be made in each of the following: 
 (a) The number of Options available for future grants under Article 3; 
 (b) The number of Common Shares covered by each outstanding Option; or 
 (c) The Exercise Price under each outstanding Option. 
 In the event of a declaration of an extraordinary dividend payable in a form other than Common Shares in an amount that has a material effect on the price 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 the foregoing. Except as provided in this Article 6, an Optionee shall have no rights by reason of any issuance 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
consolidation, all outstanding Options shall be subject to the agreement of merger or consolidation. Such agreement shall provide for one or more of the following: 
 (a) The continuation of such outstanding Options by the Company (if the Company is the surviving corporation). 
 (b) The assumption of such outstanding Options by the surviving corporation or its parent in a manner that complies with
section 424(a) of the Code (even though such Options are not ISOs). 
 (c) The substitution by the surviving corporation
or its parent of new options for such outstanding Options in a manner that complies with section 424(a) of the Code (even though such Options are not ISOs). 
  

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 (d) Full exercisability of such outstanding Options and full vesting of the Common Shares
subject to such Options, followed by the cancellation of such Options. The full exercisability of such Options and full vesting of the Common Shares subject to such Options may be contingent on the closing of such merger or consolidation. The
Optionees shall be able to exercise such Options during a period of not less than five full business days preceding the closing date of such merger or consolidation, unless (i) a shorter period is required to permit a timely closing of such
merger or consolidation and (ii) such shorter period still offers the Optionees a reasonable opportunity to exercise such Options. Any exercise of such Options during such period may be contingent on the closing of such merger or consolidation.

 (e) The cancellation of such outstanding Options and a payment to the Optionees equal to the excess of (i) the Fair
Market Value of the Common Shares subject to such Options (whether or not such Options are then exercisable or such Common Shares are then vested) as of the closing date of such merger or consolidation over (ii) their Exercise Price. Such
payment shall be made in the form of cash, cash equivalents, or securities of the surviving corporation or its parent with a Fair Market Value equal to the required amount. Such payment may be made in installments and may be deferred until the date
or dates when such Options would have become exercisable or such Common Shares would have vested. Such payment may be subject to vesting based on the Optionee’s continuing Service, provided that the vesting schedule shall not be less favorable
to the Optionees than the schedule under which such Options would have become exercisable or such Common Shares would have vested. If the Exercise Price of the Common Shares subject to such Options exceeds the Fair Market Value of such Common
Shares, then such Options may be cancelled without making a payment to the Optionees. For purposes of this Subsection (e), the Fair Market Value of any security shall be determined without regard to any vesting conditions that may apply to such
security. 
 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 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 

  

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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, as set forth herein, shall become effective on the date of the IPO. The Plan shall remain in effect until the earlier of (a) the date the Plan is terminated under Section 8.2 or (b) the 10th anniversary of the date the Board adopted the Plan. 
 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 Awards shall be granted under the Plan after the termination thereof. The termination of the Plan, or any amendment
thereof, shall not affect any Award 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 “Audit Committee” means the Audit Committee of the Board. 
 9.3 “Change in Control” means: 
 (a) The consummation of a merger or consolidation of the Company with or into another entity or any other corporate reorganization, if persons who were not stockholders of the Company immediately prior to such merger,
consolidation or other reorganization own immediately after such merger, consolidation or other reorganization 50% or more of the voting power of the outstanding securities of each of (i) the continuing or surviving entity and (ii) any
direct or indirect parent corporation of such continuing or surviving entity; 
 (b) The sale, transfer or other disposition
of all or substantially all of the Company’s assets; 
 (c) A change in the composition of the Board, as a result of
which fewer than 50% of the incumbent directors are directors who either: 
 (i) Had been directors of the Company on the date
24 months prior to the date of such change in the composition of the Board (the “Original Directors”); or 
 (ii)
Were appointed to the Board, or nominated for election to the Board, with the affirmative votes of at least a majority of the aggregate of (A) the Original Directors who were in office at the time of their appointment or nomination and
(B) the directors whose appointment or nomination was previously approved in a manner consistent with this Paragraph (ii); or 
  

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 (d) Any transaction as a result of which any person is the “beneficial owner”
(as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing at least 50% of the total voting power represented by the Company’s then outstanding voting securities. For purposes of
this Subsection (d), the term “person” shall have the same meaning as when used in sections 13(d) and 14(d) of the Exchange Act but shall exclude (i) a trustee or other fiduciary holding securities under an employee benefit
plan of the Company or of a Parent or Subsidiary and (ii) a corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of the common stock of the Company. 
 A transaction shall not constitute a Change in Control if its sole purpose is to change the state of the Company’s incorporation or to create a holding company that
will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction. 
 9.4 “Code” means the Internal Revenue Code of 1986, as amended. 
 9.5 “Committee” means a
committee of the Board, as described in Article 2. 
 9.6 “Common Share” means one share of the common stock of the
Company. 
 9.7 “Company” means Riverbed Technology, Inc., a Delaware corporation. 
 9.8 “Consultant” means a consultant or adviser who provides bona fide services to the Company, a Parent or a Subsidiary as an
independent contractor. 
 9.9 “Employee” means a common-law employee of the Company, a Parent or a Subsidiary. 

9.10 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 9.11 “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. 
 9.12 “Fair Market Value” means the market price of Common Shares, 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. Such determination shall be conclusive
and binding on all persons. 
 9.13 “IPO” means the initial public offering of the Company’s Common Shares. 

9.14 “Non-Employee Director” means a member of the Board who is not an Employee. 
  

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 9.15 “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. 
 9.16
“Optionee” means an individual or estate that holds an Option. 
 9.17 “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. 
 9.18 “Plan” means this Riverbed Technology, Inc. 2006 Director Option Plan, as amended from time to time. 
 9.19 “Service” means service as a Non-Employee Director. 
 9.20 “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. 
 9.21 “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. 
  

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 Initial Grant 
 RIVERBED TECHNOLOGY, INC. 2006 DIRECTOR OPTION PLAN 
 NOTICE OF STOCK OPTION GRANT 
 You have been granted the following option to purchase shares of the Common Stock of Riverbed Technology, Inc. (the “Company”): 
  

			
	Name of Optionee:	  	«Name»
		
	Total Number of Shares:	  	60,0001
		
	Type of Option:	  	Nonstatutory Stock Option
		
	Exercise Price Per Share:	  	$«PricePerShare»
		
	Date of Grant:	  	«DateGrant»
		
	Vesting Commencement Date:	  	«VestDay»
		
	Vesting Schedule:	  	This option becomes exercisable with respect to 1/48th of the
Shares subject to this option when you complete each month of continuous “Service” (as defined in the Plan) after the Vesting Commencement Date.
		
	Expiration Date:	  	«ExpDate». This option expires earlier if your Service terminates earlier, as described in the Stock Option Agreement.

 You and the Company agree that this option is granted under and governed by the terms and conditions of the 2006
Director Option Plan (the “Plan”) and of the Stock Option Agreement, which is attached to and made a part of this document. 
 You further agree
that the Company may deliver by email all documents relating to the Plan or this option (including, without limitation, prospectuses required by the Securities and Exchange Commission) and all other documents that the Company is required to deliver
to its security holders (including, without limitation, annual reports and proxy statements). You also agree that the Company may deliver these documents by posting them 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 you by email. 
  

									
	OPTIONEE:	 		 	RIVERBED TECHNOLOGY, INC.
					
		 	  	 		 	By:	 	  
					
		 		 		 	Title:	 	  

	1	A new director who will serve on the Audit Committee receives 70,000 shares. A new director who will serve as the Chairman of the Audit Committee receives 80,000
shares. 

 RIVERBED TECHNOLOGY, INC. 2006 DIRECTOR
OPTION PLAN 
 STOCK OPTION AGREEMENT 
  

			
	Tax Treatment	  	This option is intended to be a nonstatutory stock option.
		
	Vesting	  	 This option becomes exercisable in installments, as shown in the Notice of Stock Option Grant.
  
 In addition, this option will become exercisable in full if the Company is subject to a Change in
Control before your Service terminates.
  
 This option will in no event become
exercisable for additional shares after your Service has terminated for any reason.

		
	Term	  	This option expires in any event at the close of business at Company headquarters on the day before the 10th anniversary of the Date of Grant, as shown in the Notice of Stock Option Grant. (It will expire earlier if your Service terminates, as described below.)
		
	 Termination of
 Service
	  	If your Service terminates for any reason, then this option will expire at the close of business at Company headquarters on the date twelve months after your termination date. The Company
determines when your Service terminates for this purpose.
		
	 Restrictions on
 Exercise
	  	The Company will not permit you to exercise this option if the issuance of shares at that time would violate any law or regulation.
		
	Notice of Exercise	  	 When you wish to exercise this option, you must notify the Company by filing the proper “Notice of Exercise” form at the address given on
the form. Your notice must specify how many shares you wish to purchase. Your notice must also specify how your shares should be registered. The notice will be effective when the Company receives it.
 If someone else wants to exercise this option after your death, that person must prove to the Company’s satisfaction that he or she is entitled to do
so.

		
	Form of Payment	  	 When you submit your notice of exercise, you must include payment of the option exercise price for the shares that you are purchasing. To the extent
permitted by applicable law, payment may be made in one (or a combination of two or more) of the following forms:
  
 •      Your personal check, a cashier’s check or a money order.

  

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		  	 •      Certificates for shares of Company stock that you own, along with
any forms needed to effect a transfer of those shares to the Company. The value of the shares, determined as of the effective date of the option exercise, will be applied to the option exercise price. Instead of surrendering shares of Company stock,
you may attest to the ownership of those shares on a form provided by the Company and have the same number of shares subtracted from the option shares issued to you.
  
 •      Irrevocable directions to a securities broker approved by the Company to sell all or
part of your option shares and to deliver to the Company from the sale proceeds an amount sufficient to pay the option exercise price and any withholding taxes. (The balance of the sale proceeds, if any, will be delivered to you.) The directions
must be given by signing a special “Notice of Exercise” form provided by the Company.

		
	 Withholding
 Taxes and Stock
 Withholding
	  	You will not be allowed to exercise this option unless you make arrangements acceptable to the Company to pay any withholding taxes that may be due as a result of the option exercise. With the
Company’s consent, these arrangements may include withholding shares of Company stock that otherwise would be issued to you when you exercise this option. The value of these shares, determined as of the effective date of the option exercise,
will be applied to the withholding taxes.
		
	 Restrictions on
 Resale
	  	You agree not to sell any option shares at a time when applicable laws, Company policies or an agreement between the Company and its underwriters prohibit a sale. This restriction will apply as
long as your Service continues and for such period of time after the termination of your Service as the Company may specify.
		
	 Transfer of
 Option
	  	Prior to your death, only you may exercise this option. You cannot transfer or assign this option. For instance, you may not sell this option or use it as security for a loan. If you attempt to
do any of these things, this option will immediately become invalid. You may, however, dispose of this option in your will or a beneficiary designation.
		
		  	Regardless of any marital property settlement agreement, the Company is not obligated to honor a notice of exercise from your former spouse, nor is the Company obligated to recognize your former
spouse’s interest in your option in any other way.
		
	Retention Rights	  	Your option or this Agreement does not give you the right to be retained by the Company or a subsidiary of the Company in any capacity. The Company and its subsidiaries reserve the right to
terminate your Service at any time, with or without cause. Nor shall this Agreement in any way be construed or interpreted so as to affect adversely or otherwise impair the

  

 3 

			
		  	right of the Company or the stockholders to remove you from the Board of Directors at any time in accordance with the provisions of applicable law.
		
	 Stockholder
 Rights
	  	You, or your estate or heirs, have no rights as a stockholder of the Company until you have exercised this option by giving the required notice to the Company and paying the exercise price. No
adjustments are made for dividends or other rights if the applicable record date occurs before you exercise this option, except as described in the Plan.
		
	Adjustments	  	In the event of a stock split, a stock dividend or a similar change in Company stock, the number of shares covered by this option and the exercise price per share may be adjusted pursuant to the
Plan.
		
	Applicable Law	  	This Agreement will be interpreted and enforced under the laws of the State of Delaware (without regard to their choice-of-law provisions).
		
	 The Plan and
 Other
Agreements
	  	 The text of the Plan is incorporated in this Agreement by reference. Capitalized terms not otherwise defined in this Agreement shall be defined as
set forth in the Plan.
  
 This Agreement and the Plan constitute the entire understanding
between you and the Company regarding this option. Any prior agreements, commitments or negotiations concerning this option are superseded. This Agreement may be amended only by another written agreement between the parties.

 BY SIGNING THE COVER
SHEET OF THIS AGREEMENT, YOU AGREE TO ALL OF THE 
 TERMS AND CONDITIONS DESCRIBED ABOVE AND IN
THE PLAN. 
  

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 Annual Grant 
 RIVERBED TECHNOLOGY, INC. 2006 DIRECTOR OPTION PLAN 
 NOTICE OF STOCK OPTION GRANT 
 You have been granted the following option to purchase shares of the Common Stock of Riverbed Technology, Inc. (the “Company”): 
  

			
		
	 Name of Optionee:
	  	«Name»
		
	 Total Number of Shares:
	  	20,0001
		
	 Type of Option:
	  	Nonstatutory Stock Option
		
	 Exercise Price Per Share:
	  	$«PricePerShare»
		
	 Date of Grant:
	  	«DateGrant»
		
	 Vesting Schedule:
	  	This option becomes exercisable with respect to 1/48th of the
Shares subject to this option when you complete each month of continuous “Service” (as defined in the Plan) after the Date of Grant.
		
	 Expiration Date:
	  	«ExpDate». This option expires earlier if your Service terminates earlier, as described in the Stock Option Agreement.

 You and the Company agree that this option is granted under and governed by the terms and conditions of the 2006
Director Option Plan (the “Plan”) and of the Stock Option Agreement, which is attached to and made a part of this document. 
 You further agree
that the Company may deliver by email all documents relating to the Plan or this option (including, without limitation, prospectuses required by the Securities and Exchange Commission) and all other documents that the Company is required to deliver
to its security holders (including, without limitation, annual reports and proxy statements). You also agree that the Company may deliver these documents by posting them 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 you by email. 
  

									
	OPTIONEE:	 		 	RIVERBED TECHNOLOGY, INC.
					
	  	 	  	 		 	By:	 	  
					
		 		 		 	Title:	 	  

	1	A director who serves on the Audit Committee will receive 28,000 shares. The Chairman of the Audit Committee will receive 32,000 shares. 

 RIVERBED TECHNOLOGY, INC. 2006 DIRECTOR
OPTION PLAN 
 STOCK OPTION AGREEMENT 
  

			
		
	 Tax Treatment
	  	This option is intended to be a nonstatutory stock option.
		
	 Vesting
	  	 This option becomes exercisable in installments, as shown in the Notice of Stock Option Grant.
  
 In addition, this option will become exercisable in full if the Company is subject to a Change in
Control before your Service terminates.
  
 This option will in no event become
exercisable for additional shares after your Service has terminated for any reason.

		
	 Term
	  	This option expires in any event at the close of business at Company headquarters on the day before the 10th anniversary of the Date of Grant, as shown in the Notice of Stock Option Grant. (It will expire earlier if your Service terminates, as described below.)
		
	 Termination of Service
	  	If your Service terminates for any reason, then this option will expire at the close of business at Company headquarters on the date twelve months after your termination date. The Company
determines when your Service terminates for this purpose.
		
	 Restrictions on Exercise
	  	The Company will not permit you to exercise this option if the issuance of shares at that time would violate any law or regulation.
		
	 Notice of Exercise
	  	 When you wish to exercise this option, you must notify the Company by filing the proper “Notice of Exercise” form at the address given on
the form. Your notice must specify how many shares you wish to purchase. Your notice must also specify how your shares should be registered. The notice will be effective when the Company receives it.
  
 If someone else wants to exercise this option after your death, that person must prove to the
Company’s satisfaction that he or she is entitled to do so.

  

 2 

			
	Form of Payment	  	 When you submit your notice of exercise, you must include payment of the option exercise price for the shares that you are purchasing. To the
extent permitted by applicable law, payment may be made in one (or a combination of two or more) of the following forms:
  
 •      Your personal check, a cashier’s check or a money order.
  
 •      Certificates for
shares of Company stock that you own, along with any forms needed to effect a transfer of those shares to the Company. The value of the shares, determined as of the effective date of the option exercise, will be applied to the option exercise price.
Instead of surrendering shares of Company stock, you may attest to the ownership of those shares on a form provided by the Company and have the same number of shares subtracted from the option shares issued to you.
  
 •      Irrevocable
directions to a securities broker approved by the Company to sell all or part of your option shares and to deliver to the Company from the sale proceeds an amount sufficient to pay the option exercise price and any withholding taxes. (The balance of
the sale proceeds, if any, will be delivered to you.) The directions must be given by signing a special “Notice of Exercise” form provided by the Company.

		
	 Withholding
 Taxes and Stock
 Withholding
	  	You will not be allowed to exercise this option unless you make arrangements acceptable to the Company to pay any withholding taxes that may be due as a result of the option exercise. With the
Company’s consent, these arrangements may include withholding shares of Company stock that otherwise would be issued to you when you exercise this option. The value of these shares, determined as of the effective date of the option exercise,
will be applied to the withholding taxes.
		
	 Restrictions on
 Resale
	  	You agree not to sell any option shares at a time when applicable laws, Company policies or an agreement between the Company and its underwriters prohibit a sale. This restriction will apply as
long as your Service continues and for such period of time after the termination of your Service as the Company may specify.
		
	 Transfer of
 Option
	  	Prior to your death, only you may exercise this option. You cannot transfer or assign this option. For instance, you may not sell this option or use it as security for a loan. If you attempt to
do any of these things, this option will immediately become invalid. You may, however, dispose of this option in your will or a beneficiary designation.
		
		  	Regardless of any marital property settlement agreement, the Company is not obligated to honor a notice of exercise from your former spouse, nor is the Company obligated to recognize your former
spouse’s interest in your option in any other way.

  

 3 

			
	Retention Rights	  	Your option or this Agreement does not give you the right to be retained by the Company or a subsidiary of the Company in any capacity. The Company and its subsidiaries reserve the right to
terminate your Service at any time, with or without cause. Nor shall this Agreement in any way be construed or interpreted so as to affect adversely or otherwise impair the right of the Company or the stockholders to remove you from the Board of
Directors at any time in accordance with the provisions of applicable law.
		
	Stockholder Rights	  	You, or your estate or heirs, have no rights as a stockholder of the Company until you have exercised this option by giving the required notice to the Company and paying the exercise price. No
adjustments are made for dividends or other rights if the applicable record date occurs before you exercise this option, except as described in the Plan.
		
	Adjustments	  	In the event of a stock split, a stock dividend or a similar change in Company stock, the number of shares covered by this option and the exercise price per share may be adjusted pursuant to the
Plan.
		
	Applicable Law	  	This Agreement will be interpreted and enforced under the laws of the State of Delaware (without regard to their choice-of-law provisions).
		
	 The Plan and
 Other
Agreements
	  	 The text of the Plan is incorporated in this Agreement by reference. Capitalized terms not otherwise defined in this Agreement shall be defined as
set forth in the Plan.
  
 This Agreement and the Plan constitute the entire understanding
between you and the Company regarding this option. Any prior agreements, commitments or negotiations concerning this option are superseded. This Agreement may be amended only by another written agreement between the parties.

 BY SIGNING THE COVER
SHEET OF THIS AGREEMENT, YOU AGREE TO ALL OF THE 
 TERMS AND CONDITIONS DESCRIBED ABOVE AND IN
THE PLAN. 
  

 42006 Employee Stock Purchase Plan

 Exhibit 10.7 
 RIVERBED TECHNOLOGY, INC. 
 2006
EMPLOYEE STOCK PURCHASE PLAN 
 (AS ADOPTED
EFFECTIVE UPON THE IPO) 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	 SECTION 1.
	  	PURPOSE OF THE PLAN	  	1
			
	 SECTION 2.
	  	ADMINISTRATION OF THE PLAN	  	1
	 (a)
	  	Committee Composition	  	1
	 (b)
	  	Committee Responsibilities	  	1
			
	 SECTION 3.
	  	STOCK OFFERED UNDER THE PLAN	  	1
	 (a)
	  	Authorized Shares	  	1
	 (b)
	  	Anti-Dilution Adjustments	  	1
	 (c)
	  	Reorganizations	  	2
			
	 SECTION 4.
	  	ENROLLMENT AND PARTICIPATION	  	2
	 (a)
	  	Offering Periods	  	2
	 (b)
	  	Accumulation Periods	  	2
	 (c)
	  	Enrollment	  	2
	 (d)
	  	Duration of Participation	  	2
	 (e)
	  	Applicable Offering Period	  	3
			
	 SECTION 5.
	  	EMPLOYEE CONTRIBUTIONS	  	3
	 (a)
	  	Commencement of Payroll Deductions	  	3
	 (b)
	  	Amount of Payroll Deductions	  	4
	 (c)
	  	Changing Withholding Rate	  	4
	 (d)
	  	Discontinuing Payroll Deductions	  	4
	 (e)
	  	Limit on Number of Elections	  	4
			
	 SECTION 6.
	  	WITHDRAWAL FROM THE PLAN	  	4
	 (a)
	  	Withdrawal	  	4
	 (b)
	  	Re-Enrollment After Withdrawal	  	4
			
	 SECTION 7.
	  	CHANGE IN EMPLOYMENT STATUS	  	4
	 (a)
	  	Termination of Employment	  	4
	 (b)
	  	Leave of Absence	  	5
	 (c)
	  	Death	  	5
			
	 SECTION 8.
	  	PLAN ACCOUNTS AND PURCHASE OF SHARES	  	5
	 (a)
	  	Plan Accounts	  	5
	 (b)
	  	Purchase Price	  	5
	 (c)
	  	Number of Shares Purchased	  	5
	 (d)
	  	Available Shares Insufficient	  	6
	 (e)
	  	Issuance of Stock	  	6
	 (f)
	  	Tax Withholding	  	6
	 (g)
	  	Unused Cash Balances	  	6

  

 i 

					
	 (h)
	  	Stockholder Approval	  	6
			
	 SECTION 9.
	  	LIMITATIONS ON STOCK OWNERSHIP	  	6
	 (a)
	  	Five Percent Limit	  	6
	 (b)
	  	Dollar Limit	  	7
			
	 SECTION 10.
	  	RIGHTS NOT TRANSFERABLE	  	7
			
	 SECTION 11.
	  	NO RIGHTS AS AN EMPLOYEE	  	8
			
	 SECTION 12.
	  	NO RIGHTS AS A STOCKHOLDER	  	8
			
	 SECTION 13.
	  	SECURITIES LAW REQUIREMENTS	  	8
			
	 SECTION 14.
	  	AMENDMENT OR DISCONTINUANCE	  	8
	 (a)
	  	General Rule	  	8
	 (b)
	  	Impact on Purchase Price	  	8
			
	 SECTION 15.
	  	DEFINITIONS.	  	9

  

 ii 

 RIVERBED TECHNOLOGY, INC. 
 2006 EMPLOYEE STOCK PURCHASE PLAN 
 SECTION 1. PURPOSE OF THE PLAN. 
 The Board adopted
the Plan effective as of the date of the IPO to be implemented at such date on or after the effective date of the IPO as determined by the Committee. 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 for favorable tax treatment under section 423
of the Code. 
 SECTION 2. ADMINISTRATION OF THE PLAN. 
 (a) Committee Composition. The Committee shall administer the Plan. 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. STOCK OFFERED UNDER THE PLAN. 
 (a)
Authorized Shares. The number of shares of Stock available for purchase under the Plan shall be 1,500,000 (subject to adjustment pursuant to Subsection (b) below). On January 1st of each year, commencing with January 1, 2007, the aggregate number of shares of Stock available for purchase during the life of the Plan shall
automatically be increased by a number equal to the least of (i) 1% of the total number of shares of Stock then outstanding, (ii) 750,000 shares of Stock (subject to adjustment pursuant to Subsection (b) below) or (iii) the
number of shares of Stock determined by the Board. 
 (b) Anti-Dilution Adjustments. The aggregate number of shares of Stock offered
under the Plan, the numerical share limit in Section 3(a)(ii), the 2,000-share limitation described in Section 8(c) and the price of shares that any Participant has elected to purchase shall be adjusted proportionately 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 8, 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 4. ENROLLMENT AND PARTICIPATION. 
 (a)
Offering Periods. While the Plan is in effect, the Committee shall determine the duration and commencement date of each Offering Period. Offering Periods may be consecutive or overlapping. 
 (b) Accumulation Periods. While the Plan is in effect, the Committee shall determine the duration and commencement date of each Accumulation
Period. 
 (c) Enrollment. 
 (i) At First Offering Period. Each individual who, on the commencement date of the first Offering Period, qualifies as an Eligible Employee shall automatically become a Participant on such day. Each Participant
who was automatically enrolled on the commencement date of the first Offering Period shall file the prescribed enrollment form with the Company. The enrollment form shall be filed at the prescribed location within 10 business days after the later of
(a) the date on which the Company filed a registration statement on Form S-8 for the shares of Stock offered under the Plan and (b) the commencement date of the first Offering Period. If a Participant who was automatically enrolled on
the date of the first Offering Period fails to file such form in a timely manner, then such Participant shall be deemed to have withdrawn from the Plan under Section 6(a). A former Participant who is deemed to have withdrawn from the Plan shall
not be a Participant until he or she re-enrolls in the Plan under Subsection (ii) below. Re-enrollment may be effective only at the commencement of an Offering Period. 
 (ii) After First Offering Period. In the case of any individual who qualifies as an Eligible Employee on the first day of any
Offering Period other than the first Offering Period, he or she may elect to become a Participant on such day by filing the prescribed enrollment form with the Company. The enrollment form shall be filed at the prescribed location not later than the
commencement date 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: 
 (i) Reaches the end of the Accumulation Period in which his or her employee
contributions were discontinued under Section 5(d) or 9(b); 
  

 2 

 (ii) Is deemed to withdraw from the Plan under Subsection (c)(i) above; 

(iii) Withdraws from the Plan under Section 6(a); or 
 (iv) Ceases to be an Eligible Employee. 
 A
Participant whose employee contributions were discontinued automatically under Section 9(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. In all other cases, a former Participant may again become a Participant, if he or she then is an Eligible Employee, by following the procedure described in Subsection (c)(ii) above. 
 (e) Applicable Offering Period. For purposes of calculating the Purchase Price under Section 8(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), (iii) or (iv) below, provided that the Committee has determined that there will be a subsequent Offering Period. 
 (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) If Section 14(b) applies, the Participant shall automatically be re-enrolled for a new Offering Period. 
 (iv) 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. 
 (v) 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 5. EMPLOYEE CONTRIBUTIONS. 
 (a) Commencement of Payroll Deductions. A Participant may purchase shares of
Stock under the Plan solely by means of payroll deductions. Payroll deductions shall 

  

 3 

 
commence as soon as reasonably practicable after the Company has received the prescribed enrollment form. 
 (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 reasonably practicable after the Company has received such form. 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
the Company has received such form. (In addition, employee contributions may be discontinued automatically pursuant to Section 9(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 the Company has received such form. 
 (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 6. 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 4(c)(ii). Re-enrollment may be effective only at the commencement of an Offering Period. 
 SECTION 7. 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 6(a). (A transfer from one Participating Company to another shall not be treated as a termination of employment.) 
  

 4 

 (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. 
 SECTION 8. 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 before the commencement of the applicable
Offering Period (as determined under Section 4(e)) or, in the event that the first Offering Period under the Plan commences on the effective date of the IPO, 85% of the price at which one share of Stock is offered to the public in the IPO; or

 (ii) 85% of the Fair Market Value of such share on the last trading day in such Accumulation Period. 
 (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 6(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
shares of Stock with respect to any Accumulation Period nor more than the amounts of Stock set forth in Sections 3(a) and 9(b). 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. 
  

 5 

 (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 3, 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 such fraction is the number of shares that such Participant has elected to purchase, and the denominator of such fraction 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 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) Tax Withholding. To the extent required by applicable
federal, state, local or foreign law, a Participant 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
shares of Stock under the Plan until such obligations are satisfied. 
 (g) 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 3 or Section 9(b) shall be refunded to the Participant in cash, without interest. 
 (h) 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 9. 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 
  

 6 

 (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 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 automatically 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 10. 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 6(a). 
  

 7 

 SECTION 11. 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 12. 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 13. 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 (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 14. AMENDMENT OR DISCONTINUANCE. 
 (a) General Rule. The Board shall have the right to amend, suspend or terminate the Plan at any time and without notice. Except as provided in
Section 3, any increase in the aggregate number of shares of Stock that may be issued under the Plan shall be subject to the approval of the Company’s stockholders. In addition, any other amendment of the Plan shall be subject to the
approval of the Company’s stockholders to the extent required by any 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. 
 (b) Impact on Purchase Price.
This Subsection (b) shall apply in the event that (i) the Company’s stockholders during an Accumulation Period approve an increase in the number of shares of Stock that may be issued under Section 3 and (ii) the aggregate
number of shares to be purchased at the close of such Accumulation Period exceeds the number of shares that remained available under Section 3 before such increase. In such event, the Purchase Price for each share of Stock purchased at the
close of such Accumulation Period shall be the lower of: 
 (i) The higher of (A) 85% of the Fair Market Value of such
share on the last trading day before the commencement of the applicable Offering Period or, in the event that the first Offering Period under the Plan commences on the effective date of the IPO, 85% of the price at which one share of Stock is
offered to the public in the IPO or (B) 85% of the Fair Market Value of such share on the 

  

 8 

 
last trading day before the date when the Company’s stockholders approve such increase; or 
 (ii) 85% of the Fair Market Value of such share on the last trading day in such Accumulation Period. 
 Immediately after the close of such Accumulation Period, a new Offering Period shall commence for all Participants, provided that the Committee has determined that a new
Offering Period should commence. 
 SECTION 15. DEFINITIONS. 
 (a) “Accumulation Period” means a period, as determined by the Committee, during which contributions may be made toward the purchase of Stock under the Plan, as determined pursuant to
Section 4(b). In no event will such period exceed six months. 
 (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 Riverbed Technology, 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. 
 (a) “Eligible Employee” means any employee of a Participating Company who meets both of the
following requirements: 
 (i) His or her customary employment is for more than five months per calendar year and for more
than 20 hours per week; and 
  

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 (ii) He or she has been an employee of a Participating Company for such period as the
Committee may determine before the beginning of the applicable Offering Period. 
 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 that 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. 
 (b) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 (c) “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 or The Nasdaq SmallCap Market on the date in question, then the Fair Market
Value shall be equal to the last-transaction price quoted for such date by such 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 
 (iii) If none of the foregoing provisions is applicable, then the Committee shall determine the Fair Market Value 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. 
 (d) “IPO” means the effective date of the registration statement filed by the Company with the Securities and Exchange Commission for its initial offering of Stock to the public. 
 (e) “Offering Period” means a period, as determined by the Committee, with respect to which the right to purchase Stock may be granted
under the Plan, as determined pursuant to Section 4(a). In no event will such period exceed 24 months. 
 (f)
“Participant” means an Eligible Employee who participates in the Plan, as provided in Section 4. 
 (g)
“Participating Company” means (i) the Company and (ii) each present or future Subsidiary designated by the Committee as a Participating Company. 
 (h) “Plan” means this Riverbed Technology, Inc. 2006 Employee Stock Purchase Plan, as it may be amended from time to time. 

 

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 (i) “Plan Account” means the account established for each Participant pursuant to
Section 8(a). 
 (j) “Purchase Price” means the price at which Participants may purchase Stock under the Plan, as
determined pursuant to Section 8(b). 
 (k) “Stock” means the Common Stock of the Company. 
 (l) “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. 
  

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