Exhibit 10.4

 

ACKNOWLEDGEMENT AND RATIFICATION

 

ACKNOWLEDGEMENT AND RATIFICATION (this “Acknowledgement”), dated as of
November 8, 2005, by and among Avanex Corporation, a Delaware corporation, (the
“Company”) and each of the Guarantors (defined below) and as acknowledged and
agreed by HBK Investments L.P. as Collateral Agent (the “Agent”).

 

WHEREAS, pursuant to the terms of the Securities Purchase Agreement, dated as of
May 16, 2005 (as may be amended, restated, replaced or otherwise modified from
time to time the “Securities Purchase Agreement”), by and among the Company and
the investors listed on the Schedule of Buyers attached thereto (individually,
an “Investor” and collectively, the “Investors”), the Company has issued certain
senior secured convertible notes (each, an “Original Note” and collectively, the
“Original Notes”) to each of the Investors. . All capitalized terms used herein
and not otherwise defined shall have the meanings set forth in the Securities
Purchase Agreement.

 

WHEREAS, each of the undersigned “Guarantors” (each a “Guarantor” and
collectively, the “Guarantors”) has executed and delivered to the Agent, the
Guaranty (the “Guaranty”) dated May 19, 2005 to guaranty the Guaranteed
Obligations (as defined therein) with respect to the obligations of the Company
under the Securities Purchase Agreement and the Original Notes;

 

WHEREAS, to secure the obligations of the Company under the Securities Purchase
Agreement and the Notes and to secure the Guaranteed Obligations under the
Guaranty, the Company and each Guarantor has previously executed and delivered
to the Agent (i) the Security Agreement dated as of May 19, 2005 (the “Security
Agreement”), and (ii) the Pledge Agreement dated May 19, 2005 (the “Pledge
Agreement”, and together with the Guaranty and the Security Agreement, the
“Security Documents”);

 

WHEREAS, the Company and each Investor has entered into an Amendment Agreement,
dated the date hereof (each, an “Amendment Agreement”) amending certain
provisions of the Securities Purchase Agreement and other Transaction Documents
and providing for the amendment and restatement of such Investor’s Original
Notes (the “Amended and Restated Notes”).

 

WHEREAS, as a condition to the effectiveness of each of the Amendment
Agreements, each of the Investors have required that the Company and each
Guarantor deliver this Acknowledgement, confirming the effect of such Investor’s
Amendment Agreement on the Security Documents.

 

NOW, THEREFORE, in consideration of the premises and the agreements herein and
in order to induce each Investor to execute its Amendment Agreement, the Company
and each Guarantor agrees for the benefit of the Agent and each of the
Investors, as follows:

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The Company and each Guarantor hereby: (i) expressly acknowledges the terms of
each Investor’s Amendment Agreement; (ii) ratifies and confirms its obligations
under each of the Security Documents to which it is a party, (iii) hereby
acknowledges and agrees that the Amended and Restated Notes amend and
restate the same obligations as were evidenced by the Original Notes and that
all references to the “Notes” in the Security Documents to which it is a party
shall be deemed to refer to the Amended and Restated Notes (as may be further
amended, restated, replaced or otherwise modified from time to time in
accordance with the terms thereof) and (iv) acknowledges and agrees that each
Security Document to which it is a party shall remain in full force and effect.

 

This Acknowledgement may be signed in two or more counterparts, each of which
shall be deemed an original, but all of which taken together shall constitute
one and the same instrument.

 

IN WITNESS WHEREOF, each of the undersigned has duly executed this instrument as
of the date first written above.

 

COMPANY: AVANEX CORPORATION

By:

 

/s/ A.A. RILEY

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Name:   Tony Riley Title:   CFO

 

GUARANTORS:

 

AVANEX U.S.A. CORPORATION

By:  

/s/ A.A. RILEY

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Name:   Tony Riley Title:   CFO

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AVANEX INTERNATIONAL CORPORATION By:  

/s/ A.A. RILEY

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Name:   Tony Riley Title:   CFO LAMBDAFLEX, INC. By:  

/s/ A.A. RILEY

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Name:   Tony Riley Title:   CFO PEARL ACQUISITION CORP. By:  

/s/ A.A. RILEY

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Name:   Tony Riley Title:   CFO

 

ACKNOWLEDGED AND AGREED:

HBK INVESTMENTS, L.P.

as Collateral Agent

By:  

/s/ DAVID C. HALEY

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Name:   David C. Haley Title:   Authorized Signatory