EXHIBIT 10.33
 
NEW FOCUS, INC.
2000 STOCK PLAN
STOCK OPTION AGREEMENT
(Executive/Change of Control Form)
 
Unless otherwise defined herein, the capitalized terms used in this Stock Option
Agreement (this “Option Agreement”) shall have the same defined meanings as
defined in the 2000 Stock Plan (the “Plan”).
 
I.    NOTICE OF STOCK OPTION GRANT
 
<<Name>>
 
<<Address>>
 
You have been granted an option to purchase Common Stock of the Company, subject
to the terms and conditions of the Plan and this Option Agreement, as follows:
 
 
Date of Grant
      

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Vesting Commencement Date
      

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Exercise Price per Share
  
$
 

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Total Number of Shares Granted
      

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Total Exercise Price
  
$
 

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Type of Option:
  
            Incentive Stock Option
    
   X      Nonstatutory Stock Option
Term/Expiration Date:
      

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Vesting Schedule:
 
This Option shall be exercisable, in whole or part, according to the following
vesting schedule:
 
20% of the Shares subject to the Option shall vest twelve (12) months after the
Vesting Commencement Date, and 1/60th of the Shares subject to the Option shall
vest each month thereafter, subject to Optionee continuing to be a Service
Provider on such dates.

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Termination Period:
 
This Option may be exercised for a period of ninety (90) days after Optionee
ceases to be a Service Provider; provided, however, that (i) in the event of
Optionee’s voluntary termination as a Service Provider following a Good Reason
Event (as defined in Section 7(d) below) or Optionee’s involuntary termination
as a Service Provider without Cause (as defined in Section 7(b) below) at any
time within the 3-month period prior to or the 18-month period following a
Change of Control (as defined in Section 7(c) below), (ii) in the event of
Optionee’s voluntary termination as a Service Provider following a Good Reason
Event or Optionee’s involuntary termination as a Service Provider without Cause
at any time within the 12-month period following a Buy-Side Event (as defined in
Section 7(a) below), or (iii) upon the death or Disability of Optionee, this
Option may be exercised for twelve (12) months after Optionee ceases to be a
Service Provider. Notwithstanding the foregoing, in no event shall this Option
be exercised later than the Term/Expiration Date as provided above.
 
II.    AGREEMENT
 
1.    Grant of Option.    The Plan Administrator of the Company hereby grants to
the Optionee named in the Notice of Grant attached as Part I of this Option
Agreement (“Optionee”) an Option (the “Option”) to purchase the number of
Shares, as set forth in the Notice of Grant, at the exercise price per share set
forth in the Notice of Grant (the “Exercise Price”), subject to the terms and
conditions of the Plan, which is incorporated herein by reference. Subject to
Section 15(c) of the Plan, in the event of a conflict between the terms and
conditions of the Plan and the terms and conditions of this Option Agreement,
the terms and conditions of the Plan shall prevail.
 
If designated in the Notice of Grant as an Incentive Stock Option (“ISO”), this
Option is intended to qualify as an Incentive Stock Option under Section 422 of
the Code. However, if this Option is intended to be an Incentive Stock Option,
to the extent that it exceeds the $100,000 rule of Code Section 422(d) it shall
be treated as a Nonstatutory Stock Option.
 
2.    Exercise of Option.
 
(a)    Right to Exercise.    The Option shall be exercisable during its term in
accordance with the Vesting Schedule set forth in the Notice of Grant and with
the applicable provisions of the Plan and this Option Agreement.
 
(b)    Method of Exercise.    This Option is exercisable by delivery of an
exercise notice, in the form attached as Exhibit A (the “Exercise Notice”),
which shall state the election to exercise the Option, the number of Shares in
respect of which the Option is being exercised (the “Exercised Shares”), and
such other representations and agreements as may be required by the Company
pursuant to the provisions of the Plan. The Exercise Notice shall be completed
by Optionee and delivered to the Stock Administrator of the Company. The
Exercise Notice shall be accompanied by payment of the aggregate Exercise Price
as to all Exercised Shares. This Option shall be deemed to be exercised upon
receipt by the Company of such fully executed Exercise Notice accompanied by
such aggregate Exercise Price.

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No Shares shall be issued pursuant to the exercise of this Option unless such
issuance and exercise complies with Applicable Laws. Assuming such compliance,
for income tax purposes the Exercised Shares shall be considered transferred to
Optionee on the date the Option is exercised with respect to such Exercised
Shares.
 
3.    Method of Payment.
 
Payment of the aggregate Exercise Price shall be by any of the following, or a
combination thereof, at the election of Optionee:
 
(a)    cash; or
 
(b)    check; or
 
(c)    consideration received by the Company under a cashless exercise program
implemented by the Company in connection with the Plan; or
 
(d)    surrender of other Shares which (i) in the case of Shares acquired upon
exercise of an option, have been owned by Optionee for more than six (6) months
on the date of surrender, and (ii) have a Fair Market Value on the date of
surrender equal to the aggregate Exercise Price of the Exercised Shares.
 
4.    Non-Transferability of Option.
 
This Option may not be transferred in any manner otherwise than by will or by
the laws of descent or distribution and may be exercised during the lifetime of
Optionee only by Optionee. The terms of the Plan and this Option Agreement shall
be binding upon the executors, administrators, heirs, successors and assigns of
Optionee.
 
5.    Term of Option.
 
This Option may be exercised only within the term set out in the Notice of
Grant, and may be exercised during such term only in accordance with the Plan
and the terms of this Option Agreement.
 
6.    Acceleration of Vesting.
 
(a)    Acceleration Following a Change of Control.    Notwithstanding any
vesting provisions to the contrary in this Option Agreement, upon a Good Reason
Event (as defined in Section 7(d) below) or Optionee’s involuntary termination
as a Service Provider without Cause (as defined in Section 7(b) below) at any
time within the 3-month period prior to, or at any time within the 18-month
period following, the effective date of a Change of Control (as defined in
Section 7(c) below), Optionee shall fully vest in and have the right to exercise
the Option as to one hundred percent (100%) of the then unvested Shares subject
to the Option as of the date of such Good Reason Event or involuntary
termination as a Service Provider without Cause.

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(b)    Acceleration Following a Buy-Side Event.    Notwithstanding any vesting
provisions to the contrary, upon a Good Reason Event (as defined in Section 7(d)
below), or in the event of Optionee’s termination as a Service Provider without
Cause (as defined in Section 7(b) below), at any time within the 12-month period
following a Buy-Side Event (as defined in Section 7(a) below), Optionee shall
fully vest in and have the right to exercise this Option as to one hundred
percent (100%) of the then unvested Shares subject to the Option as of the date
of such Good Reason Event or termination as a Service Provider without Cause.
 
7.    Definitions.    For purposes of this Option Agreement, the following terms
shall have the meanings set forth below:
 
(a)    Buy-Side Event.    “Buy-Side Event” shall mean the (i) Company’s
acquisition, directly or indirectly, of securities of another corporation or
entity representing more than fifty percent (50%) of the total voting power
represented by such corporation or entity’s then outstanding voting securities
or (ii) a merger or consolidation of another corporation or entity with the
Company, or the Company’s purchase of all or substantially all the assets of
another corporation or entity, a result of which merger, consolidation or
purchase, the voting securities of such corporation or entity outstanding
immediately prior thereto do not continue to represent (either by remaining
outstanding or by being converted into voting securities of the Company) more
than fifty percent (50%) of the total voting power represented by the voting
securities of such corporation or entity or surviving entity outstanding
immediately after such merger, consolidation or sale.
 
(b)    Cause.    “Cause” shall mean Optionee’s (i) willful act of personal
dishonesty, gross misconduct, fraud or misrepresentation, taken by Optionee in
connection with his/her responsibilities as a Service Provider, that is
seriously injurious to the Company; (ii) conviction of or entry of a plea of
guilty or nolo contendere to a felony; or (iii) willful and continued failure to
substantially perform his/her principal duties and/or obligations as a Service
Provider (other than any such failure resulting from incapacity due to bona fide
physical or mental illness), which failure is not remedied within a period of
forty-five (45) days after receipt of written notice from the Company,
specifically identifying the manner in which the Company believes that Optionee
has not substantially performed his/her duties and/or obligations. For the
purposes of this Section 7(b), no act or failure to act shall be considered
“willful” unless done or omitted to be done in bad faith and without reasonable
belief that the act or omission was in or not opposed to the best interests of
the Company.
 
(c)    Change of Control.    “Change of Control” shall mean the occurrence of
any of the following events:
 
(i)    the acquisition by any “person” (as such term is used in Sections 13(d)
and 14(d) of the Exchange Act) (other than the Company or a person that directly
or indirectly controls, is controlled by, or is under common control with, the
Company) of the “beneficial ownership” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Company representing
more than fifty percent (50%) of the total voting power represented by the
Company’s then outstanding voting securities;

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(ii)    a merger or consolidation of the Company with any other corporation, or
the sale of all or substantially all the assets of the Company, a result of
which merger, consolidation or sale, the voting securities of the Company
outstanding immediately prior thereto do not continue to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity, including the parent corporation of such surviving entity)
more than fifty percent (50%) of the total voting power represented by the
voting securities of the Company or such surviving entity outstanding
immediately after such merger, consolidation or sale;
 
(iii)    the approval of a plan of complete liquidation or dissolution of the
Company; or
 
(iv)    a change in the composition of the Board occurring within a 12-month
period, as a result of which fewer than a majority of the directors are
Incumbent Directors. “Incumbent Directors” shall mean directors who either (A)
are members of the Board as of the date of this Option Agreement, or (B) are
elected, or nominated for election, to the Board with the affirmative votes of
at least a majority of directors whose election was neither in connection with
any transactions described in subsections (i) or (ii), nor in connection with an
actual or threatened proxy contest relating to the election of directors to the
Board.
 
(d)    Good Reason Event.    “Good Reason Event” shall mean that without
Optionee’s written consent and without Cause, any of the following events occur:
 
(i)    a reduction of five percent (5%) or more of Optionee’s compensation
(including base salary and any non-discretionary and objective standard
incentive payments or bonus awards, but excluding facilities, fringe benefits
and prerequisites included in Subsection 7(d)(iii) below);
 
(ii)    a reduction of the scope or nature of Optionee’s duties and/or
responsibilities, it being understood that the fact alone that Optionee’s duties
and/or responsibilities are conducted at the Company level following a Change of
Control, rather than at the combined entity level, shall constitute a Good
Reason Event;
 
(iii)    a substantial reduction, without good business reasons, of the
facilities, fringe benefits or perquisites available to Optionee immediately
prior to such reduction (good business reasons include reductions to make such
facilities, fringe benefits or perquisites consistent with the practice of the
acquiring company);
 
(iv)    the relocation of Optionee’s primary workplace to a location more than
fifty (50) miles away from his/her workplace in effect immediately prior to such
relocation; or
 
(v)    the failure of the Company to obtain the express assumption of this
Option Agreement, including the terms of Section 6 and this Section 7, by an
acquiring corporation.
 
8.    Tax Consequences.    Set forth below is a brief summary as of the date of
this Option Agreement of some of the federal tax consequences of exercise of the
Option and disposition of the Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE,
AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. OPTIONEE SHOULD CONSULT
A TAX ADVISER BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE SHARES.

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(a)    Exercise of the Option.    Upon the exercise of the Option, Optionee will
recognize compensation income (taxable at ordinary income tax rates) equal to
the excess, if any, of the Fair Market Value of the Exercised Shares on the date
of exercise over the aggregate Exercise Price. If Optionee is an Employee or a
former Employee, the Company will be required to withhold from Optionee’s
compensation or collect from Optionee and pay to the applicable taxing
authorities an amount in cash equal to a percentage of this compensation income
at the time of exercise, and may refuse to honor the exercise and refuse to
deliver Shares if such withholding amounts are not delivered at the time of
exercise.
 
(b)    Disposition of Shares.    If Shares are held for at least one year, any
gain realized on disposition of such Shares will be treated as long-term capital
gain for federal income tax purposes.
 
9.    Entire Agreement; Governing Law.
 
The Plan is incorporated herein by reference. The Plan and this Option
Agreement, including the exhibits hereto, constitute the entire agreement of the
parties with respect to the subject matter hereof and supersede in their
entirety all prior undertakings and agreements of the Company and Optionee with
respect to the subject matter hereof and may not be modified adversely to
Optionee’s interest except by means of a writing signed by the Company and
Optionee. This Option Agreement is governed by the internal substantive laws,
but not the choice of law rules, of California.
 
10.    NO GUARANTEE OF CONTINUED SERVICE.
 
OPTIONEE ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO THE
VESTING SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING AS A SERVICE PROVIDER AT
THE WILL OF THE COMPANY (AND NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED
AN OPTION OR PURCHASING SHARES HEREUNDER). OPTIONEE FURTHER ACKNOWLEDGES AND
AGREES THAT THIS OPTION AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND
THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED
PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING PERIOD,
FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE WITH OPTIONEE’S RIGHT OR THE
COMPANY’S RIGHT TO TERMINATE OPTIONEE’S RELATIONSHIP AS A SERVICE PROVIDER AT
ANY TIME, WITH OR WITHOUT CAUSE.
 
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By your signature and the signature of the Company’s representative below, you
and the Company agree that this Option is granted under and governed by the
terms and conditions of the Plan and this Option Agreement. Optionee has
reviewed the Plan and this Option Agreement in their entirety, has had an
opportunity to obtain the advice of counsel prior to executing this Option
Agreement and fully understands all provisions of the Plan and Option Agreement.
Optionee hereby agrees to accept as binding, conclusive and final all decisions
or interpretations of the Administrator upon any questions relating to the Plan
and Option Agreement. Optionee further agrees to notify the Company upon any
change in the residence address indicated below.
 
 
 
OPTIONEE:
  
NEW FOCUS, INC.
 

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Signature
  
By:   
         Officer Name
    
<<Name>>

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Print Name
    
<<Address 1>>

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Residence Address
    
<<Address 2>>

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