Sample Business Contracts

Full Recourse Promissory Note - NetScreen Technologies Inc.

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                         Full Recourse Promissory Note

                             Sunnyvale, California

$__________                                                  ___________, _____

Reference is made to that certain _____________________ (the "Agreement") of
even date herewith, by and between the undersigned (the "Employee") and
NetScreen Technologies, Inc., a Delaware corporation (the "Company"), issued to
Employee under the Company's 1997 Equity Incentive Plan (the "Plan"). This
Secured Full Recourse Promissory Note (the "Note") is being tendered by
Employee to the Company as part of the total purchase price of the Shares (as
defined below) pursuant to the Agreement.

          1.   Obligation. In exchange for the issuance to the Employee pursuant
to the Agreement of ________ shares of the Company's Common Stock (the
"Shares"), receipt of which is hereby acknowledged, Employee hereby promises to
pay to the order of the Company on or before _________, _____ at the Company's
principal place of business or at such other place as the Company may direct,
the principal sum of __________________ ($_______) together with interest
compounded annually at the rate of _____%. All payments hereunder shall be made
lawful tender of the United States.

          2.   Events of Default. Employee will be deemed to be in default under
this Note upon the occurrence of any of the following events (each an "Event of
Default"): (i) upon Employee's failure to make any payment when due under this
Note; which failure shall continue for a period of ten (10) days after such due
date; (ii) Employee is Terminated (as defined in the Plan); (iii) the failure of
any representation or warranty in the Agreement to have been true, the failure
of Employee to perform any obligation under the Agreement, or upon any other
material breach by the Employee of the Agreement; (iv) upon the filing regarding
the Employee of any voluntary or involuntary petition for relief under the
United States Bankruptcy Code or the initiation of any proceeding under federal
law or law of any other jurisdiction for the general relief of debtors; or (v)
upon the execution by Employee of an assignment for the benefit of creditors or
the appointment of a receiver, custodian, trustee or similar party to take
possession of Employee's assets or property.

          3.   Acceleration; Remedies On Default. Upon the occurrence of any
Event of Default, at the option of the Company, all principal and other amounts
owed under this Note shall become immediately due and payable without notice or
demand on the part of the Company, and the Company will have, in addition to its
rights and remedies under this Note, the Agreement, full recourse against any
real, personal, tangible or intangible assets of Employee, and may pursue any
legal or equitable remedies that are available to it.

          4.   Prepayment. Prepayment of principal and/or other amounts owed
under this Note may be made at any time without penalty. Unless otherwise agreed
in writing by the


Company, each payment will be applied to the extent of available funds from such
payment in the following order: (i) first to the accrued and unpaid costs and
expenses under the Note or the Agreement, (ii) then to accrued but unpaid
interest, and (iii) lastly to the outstanding principal.

          5.   Governing Law; Waiver. The validity, construction and performance
of this Note will be governed by the internal laws of the State of California,
excluding that body of law pertaining to conflicts of law. Employee hereby
waives presentment, notice of non-payment, notice of dishonor, protest, demand
and diligence.

          6.   Attorneys' Fees. If suit is brought for collection of this Note,
Employee agrees to pay all reasonable expenses, including attorneys' fees,
incurred by the holder in connection therewith whether or not such suit is
prosecuted to judgment.

          IN WITNESS WHEREOF, Employee has executed this Note as of the date and
year first above written.

-------------------------------------    ---------------------------------------
Employee's Name                          Employee's Signature

 [Signature page to NetScreen Technologies, Inc. Full Recourse Promissory Note]