exv10w48







Exhibit 10.48




FORM OF RESTRICTED STOCK UNIT AGREEMENT BETWEEN AVANEX AND CERTAIN OF ITS

EXECUTIVE OFFICERS



Avanex Corporation (the “Company”) hereby grants you, [___] (the “Grantee”), the number of
Restricted Stock Units indicated below under the Company’s 1998 Stock Plan (the “Plan”). The date
of this Agreement is [___] (the “Grant Date”). Subject to the provisions of Appendix A (attached)
and of the Plan, the principal features of this grant are as follows:




	 	 	 
	Grant Date:

	 	[___]
	Total Number of Shares of Restricted Stock:

	 	[___]






	 	 	 
	Scheduled Vesting:

	 	The Restricted Stock Units will vest in accordance with the following
schedule: [25% of the Restricted Stock Units awarded by this Agreement shall vest
twelve months after the Grant Date, and 1/48 of the Restricted Stock Units awarded by
this Agreement shall vest each month thereafter,] subject to your continuing to be a
Service Provider through the applicable vesting date.






	 	 	 	 	 
	Purchase Price per Share:

	 	$	.001	 
	Total Purchase Price

	 	 	[___]	 





Your signature below indicates your agreement and understanding that this grant is subject to all
of the terms and conditions contained in this Agreement, including Appendix A, and the Plan.
Important additional information on vesting and forfeiture of the Restricted Stock Units covered by
this grant is contained in paragraphs 4 through 8 of Appendix A. PLEASE BE SURE TO READ ALL OF
APPENDIX A, WHICH CONTAINS THE SPECIFIC TERMS AND CONDITIONS OF THIS AGREEMENT. YOU AGREE TO
EXECUTE THIS AGREEMENT AS A CONDITION TO RECEIVING ANY SHARES.




	 	 	 	 	 	 	 
	AVANEX CORPORATION	 	GRANTEE	 	 
	By:
	 	 	 	 	 	 
	 

	 	 

	 	 

	 	 






APPENDIX A — TERMS AND CONDITIONS OF RESTRICTED STOCK





	1.	 	Grant. The Company hereby grants to the Grantee under the Plan at the per share
price of $.001, equal to the par value of a Share, the number of Restricted Stock Units
indicated in the Notice of Grant, subject to all of the terms and conditions in this Agreement
and the Plan.
	 
	2.	 	Payment of Purchase Price. When the Restricted Stock Units are paid out to the
Grantee, par value will be deemed paid by the Grantee for each Restricted Stock Unit through
the past services rendered by the Grantee, and will be subject to the appropriate tax
withholdings.
	 
	3.	 	Company’s Obligation to Pay. Each Restricted Stock Unit has a value equal to the
Fair Market Value of a Share on the date of grant. Unless and until the Restricted Stock
Units have vested in the manner set forth in paragraphs 4, 5 or 6, the Grantee will have no
right to payment of such Restricted Stock Units. Prior to actual payment of any vested
Restricted Stock Units, such Restricted Stock Units will represent an unsecured obligation.
	 
	4.	 	Vesting Schedule. Except as otherwise provided in paragraphs 5 or 6 of this
Agreement, the Restricted Stock Units awarded by this Agreement are scheduled to vest in
accordance with the vesting schedule set forth in the Notice of Grant. Restricted Stock Units
scheduled to vest on any such date actually will vest only if the Grantee continues to be a
Service Provider through such date.
	 
	5.	 	Administrator Discretion. The Administrator, in its discretion, may accelerate the
vesting of the balance, or some lesser portion of the balance, of the Restricted Stock Units
at any time, subject to the terms of the Plan. If so accelerated, such Restricted Stock Units
will be considered as having vested as of the date specified by the Administrator. If the
Administrator, in its discretion, accelerates the vesting of the balance, or some lesser
portion of the balance, of the Restricted Stock Units, the payment of such accelerated
Restricted Stock Units nevertheless shall be made at the same time or times as if such
Restricted Stock Units had vested in accordance with the vesting schedule set forth in the
Notice of Grant (whether or not the Grantee remains a Service Provider through such date(s)).




 









 






	6.	 	Change of Control Acceleration






	 	(a)	 	Acceleration Upon a Change of Control. In the event of a
Change of Control of the Company that occurs while the Grantee provides services
to the Company, the vesting of the Restricted Stock Units accelerate so that a
total of 50% of the Restricted Stock Units awarded by the Agreement shall be vested upon
the date the Change of Control is consummated. The remaining unvested Shares shall
vest on the same schedule as existed prior to the Change of Control. For example,
if a Change of Control occurs when 25% of the Restricted Stock Units are vested,
then this award shall have accelerated vesting as to an additional 25% of the
Restricted Stock Units awarded by the Agreement and the remaining unvested
Restricted Stock Units shall continue to vest in accordance with the same schedule
(i.e., the same number of shares shall vest each month, if the remainder is subject
to monthly vesting) as existed prior to the Change of Control. If a Change of
Control occurs after more than 50% of the Restricted Stock Units awarded by the
Agreement have vested, then there will be no acceleration of vesting under this
provision.
	 
	 	(b)	 	Acceleration In Connection with a Termination of
Employment. Upon an Involuntary Termination of the Grantee’s employment
other than for Cause upon or within 12 months after a Change of Control, the
Restricted Stock Units awarded by the Agreement shall be fully (i.e. 100%) vested
as of the date of such termination.




The following terms referred to in this Agreement shall have the following meanings:





(i) Cause. “Cause” shall mean (i) any act of personal dishonesty taken by the Grantee in
connection with his responsibilities as an employee and intended to result in substantial
personal enrichment of the Grantee, (ii) conviction of a felony that is injurious to the
Company, and (iii) a willful act by the Grantee which constitutes gross misconduct and
which is injurious to the Company




(ii) Change of Control. “Change of Control” shall mean the occurrence of any of the
following events:




	 	1.	 	Any “person” (as such term is used in Sections 13(d) and 14(d) of
the Securities Exchange Act of 1934, as amended) is or becomes the “beneficial
owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of
securities of the Company representing 50% or more of the total voting power
represented by the Company’s then outstanding voting securities other than in a
private financing transaction approved by the Board of Directors;
	 
	 	2.	 	the direct or indirect sale or exchange by the stockholders of the
Company of all or substantially all of the stock of the Company;
	 
	 	3.	 	a merger or consolidation in which the Company is a party and in
which the stockholders of the Company before such merger or consolidation do not
retain, directly or indirectly, at a least majority of the beneficial interest in
the voting stock of the Company after such transaction; or
	 
	 	4.	 	the sale or disposition by the Company of all or substantially all
the Company’s assets.






(iii) Disability. “Disability” shall mean that the Grantee has been unable to
substantially perform his duties as the result of his incapacity due to physical or mental
illness, and such inability, at least 26 weeks after its commencement, is determined to be
total and permanent by a physician selected by the Company or its insurers and acceptable
to the Grantee or the Grantee’s legal representative (such agreement as to acceptability
not to be unreasonably withheld).




(iv) Involuntary Termination. “Involuntary Termination” shall mean (i) without the
Grantee’s express written consent, the significant reduction of the Grantee’s duties or
responsibilities relative to the Grantee’s duties or responsibilities in effect immediately
prior to such reduction; provided, however, that a reduction in duties or responsibilities
solely by virtue of the Company being acquired and made part of a larger entity (as, for
example, when the Chief Financial Officer of Company remains as such following a Change of
Control and is not made the Chief Financial Officer of the acquiring corporation) shall not
constitute an “Involuntary Termination”; (ii) without the Grantee’s express written
consent, a substantial reduction, without good business reasons, of the facilities and
perquisites (including office space and location) available to the Grantee immediately
prior to such reduction; (iii) without the Grantee’s express written consent, a material
reduction by the Company in the base compensation of the Grantee as in effect immediately
prior to such reduction, or the ineligibility of the Grantee to continue to participate in
any long-term incentive plan of the Company; (iv) a material reduction by the Company in
the kind or level of employee benefits to which the Grantee is entitled immediately prior
to such reduction with the result that the Grantee’s overall benefits package is
significantly reduced; (v) the relocation of the Grantee to a facility or a location more
than 50 miles from the Grantee’s then present location, without the Grantee’s express
written consent; or (vi) any purported termination of the Grantee by the Company which is
not effected for death or Disability or for Cause, or any purported termination for which
the grounds relied upon are not valid.



 









 






	7.	 	Payment after Vesting. Any Restricted Stock Units that vest in accordance with
paragraphs 4 or 6 will be paid to the Grantee (or in the event of the Grantee’s death, to his
or her estate) in Shares as soon as practicable following the date of vesting, subject to
paragraph 9. Any Restricted Stock Units that vest in accordance with paragraph 5 will be paid
to the Grantee (or in the event of the Grantee’s death, to his or her estate) in Shares in
accordance with the provision of such paragraph, subject to paragraph 9.
	 
	8.	 	Forfeiture. Notwithstanding any contrary provision of this Agreement, the balance of
the Restricted Stock Units that have not vested pursuant to paragraphs 4, 5 or 6 at the time
the Grantee ceases to be a Service Provider will be forfeited and automatically transferred to
and reacquired by the Company at no cost to the Company. The Grantee shall not be entitled to
a refund of the price paid for the Restricted Stock Units forfeited to the Company pursuant to
this paragraph 8.
	 
	9.	 	Death of Grantee. Any distribution or delivery to be made to the Grantee under this
Agreement will, if the Grantee is then deceased, be made to the administrator or executor of
the Grantee’s estate. Any such administrator or executor must furnish the Company with (a)
written notice of his or her status as transferee, and (b) evidence satisfactory to the
Company to establish the validity of the transfer and compliance with any laws or regulations
pertaining to said transfer.
	 
	10.	 	Withholding of Taxes. When the Shares are issued as payment for vested Restricted
Stock Units, the Grantee will recognize immediate U.S. taxable income if the Grantee is a U.S.
taxpayer. If the Grantee is a non-U.S. taxpayer, the Grantee will be subject to applicable
taxes in his or her jurisdiction. The Company (or the employing Subsidiary) will withhold a
portion of the Shares otherwise issuable in payment for vested Restricted Stock Units that
have an aggregate market value sufficient to pay the minimum federal, state and local income,
employment and any other applicable taxes required to be withheld by Avanex (or the employing
Subsidiary) with respect to the Shares. No fractional Shares will be withheld or issued
pursuant to the grant of Restricted Stock Units and the issuance of Shares thereunder; any
additional withholding necessary for this reason will be done by the Company through the
Grantee’s paycheck. Accordingly, to the extent the Fair Market Value of the number of whole
Shares withheld by the Company exceeds the withholding taxes, the Company will pay the Grantee
the difference. The Company (or the employing Subsidiary) may instead, in its discretion,
without an amount necessary to pay the applicable taxes from the Grantee’s paycheck, with no
withholding of Shares. In the event the withholding requirements are not satisfied through
the withholding of Shares (or, through the Grantee’s paycheck, as indicated above), no payment
will be made to the Grantee (or his or her estate) for Restricted Stock Units unless and until
satisfactory arrangements (as determined by the Administrator) have been made by the Grantee
with respect to the payment of any income and other taxes which the Company determines must be
withheld or collected with respect to such Restricted Stock Units. By accepting this Award,
the Grantee expressly consents to the withholding of Shares and to any cash or Share
withholding as provided for in this paragraph 10. All income and other taxes related to the
Restricted Stock Unit award and any Shares delivered in payment thereof are the sole
responsibility of the Grantee.
	 
	11.	 	Rights as Stockholder. Neither the Grantee nor any person claiming under or through
the Grantee shall have any of the rights or privileges of a stockholder of the Company in
respect of any Shares deliverable hereunder unless and until certificates representing such
Shares (which may be in book entry form) shall have been issued, recorded on the records of
the Company or its transfer agents or registrars, and delivered to the Grantee (including
through electronic delivery to a brokerage account). Notwithstanding any contrary provisions
in this Agreement, any quarterly or other regular, periodic dividends or distributions (as
determined by the Company) paid on Shares will affect neither unvested Restricted Stock Units
nor Restricted Stock Units that are vested but unpaid, and no such dividends or other
distributions will be paid on Restricted Stock Units nor Restricted Stock Units that are
vested but unpaid. After such issuance, recordation and delivery, the Employee will have all
the rights of a stockholder of the Company with respect to voting such Shares and receipt of
dividends and distributions on such Shares.
	 
	12.	 	No Effect on Employment or Service. The Grantee acknowledges and agrees that this
Agreement and the transactions contemplated hereunder do not constitute an express or implied
promise of continued service or employment as a Service Provider for any period, or at all,
and shall not interfere with the Grantee’s right or the Company’s (or employing Subsidiary’s)
right to terminate the Grantee’s relationship as a Service Provider at any time, with or
without cause.
	 
	13.	 	Address for Notices. Any notice to be given to the Company under the terms of this
Agreement shall be addressed to the Company, in care of its Secretary, at 40919 Encyclopedia
Circle, Fremont, California 94538, or at such other address as the Company may hereafter
designate in writing.
	 
	14.	 	Grant is Not Transferable. Except to the limited extent provided in paragraph 9
above, this grant and the rights and privileges conferred hereby shall not be transferred,
assigned, pledged or hypothecated in any way (whether by operation of law or otherwise) and
shall not be subject to sale under execution, attachment or similar process. Upon any attempt
to transfer, assign, pledge, hypothecate or otherwise dispose of this grant, or of any right
or privilege conferred hereby, or upon any attempted sale under any execution, attachment or
similar process, this grant and the rights and privileges conferred hereby immediately shall
become null and void.




 









 






	15.	 	Restrictions on Sale of Securities. The Shares issued as payment for vested
Restricted Stock Units awarded under this Agreement will be registered under the federal
securities laws and will be freely tradable upon receipt. However, the Grantee’s subsequent
sale of the Shares will be subject to any market blackout-period that may be imposed by the
Company and must comply with the Company’s insider trading policies, and any other applicable
securities laws.
	 
	16.	 	Binding Agreement. Subject to the limitation on the transferability of this grant
contained herein, this Agreement shall be binding upon and inure to the benefit of the heirs,
legatees, legal representatives, successors and assigns of the parties hereto.
	 
	17.	 	Conditions for Issuance of Certificates for Stock. The shares of stock deliverable
to the Grantee may be either previously authorized but unissued shares or issued shares which
have been reacquired by the Company. The Company shall not be required to issue any
certificate or certificates for Shares hereunder prior to fulfillment of all the following
conditions: (a) the admission of such Shares to listing on all stock exchanges on which such
class of stock is then listed; and (b) the completion of any registration or other
qualification of such Shares under any state or federal law or under the rulings or
regulations of the Securities and Exchange Commission or any other governmental regulatory
body, which the Administrator shall, in its absolute discretion, deem necessary or advisable;
and (c) the obtaining of any approval or other clearance from any state or federal
governmental agency, which the Administrator shall, in its absolute discretion, determine to
be necessary or advisable; and (d) the lapse of such reasonable period of time following the
date of vesting of the Restricted Stock Units as the Administrator may establish from time to
time for reasons of administrative convenience.
	 
	18.	 	Plan Governs. This Agreement is subject to all terms and provisions of the Plan. In
the event of a conflict between one or more provisions of this Agreement and one or more
provisions of the Plan, the provisions of the Plan shall govern. Capitalized terms used and
not defined in this Agreement shall have the meaning set forth in the Plan.
	 
	19.	 	Administrator Authority. The Administrator shall have the power to interpret the
Plan and this Agreement and to adopt such rules for the administration, interpretation and
application of the Plan as are consistent therewith and to interpret or revoke any such rules
(including, but not limited to, the determination of whether or not any Restricted Stock Units
have vested). All actions taken and all interpretations and determinations made by the
Administrator shall be final and binding upon the Grantee, the Company and all other persons.
The Administrator shall not be personally liable for any action, determination or
interpretation made in good faith with respect to the Plan or this Agreement.
	 
	20.	 	Captions. Captions provided herein are for convenience only and are not to serve as
a basis for interpretation or construction of this Agreement.
	 
	21.	 	Agreement Severable. In the event that any provision in this Agreement shall be held
invalid or unenforceable, such provision shall be severable from, and such invalidity or
unenforceability shall not be construed to have any effect on, the remaining provisions of
this Agreement.
	 
	22.	 	Entire Agreement. This Agreement constitutes the entire understanding of the parties
on the subjects covered. The Grantee expressly warrants that he or she is not executing this
Agreement in reliance on any promises, representations, or inducements other than those
contained herein.
	 
	23.	 	Modifications to the Agreement. This Agreement constitutes the entire understanding
of the parties on the subjects covered. The Grantee expressly warrants that he or she is not
accepting this Agreement in reliance on any promises, representations, or inducements other
than those contained herein. Modifications to this Agreement or the Plan can be made only in
an express written contract executed by a duly authorized officer of the Company.
Notwithstanding anything to the contrary in the Plan or this Agreement, the Company reserves
the right to revise this Agreement as it deems necessary or advisable, in its sole discretion
and without the consent of the Grantee, to comply with Section 409A of the Internal Revenue
Code of 1986, as amended (the “Code”) or to otherwise avoid imposition of any additional tax
or income recognition under Section 409A of the Code prior to the actual payment of Shares
pursuant to this award of Restricted Stock Units.
	 
	24.	 	Amendment, Suspension or Termination of the Plan. By accepting this award, the
Grantee expressly warrants that he or she has received a right to purchase stock under the
Plan, and has received, read and understood a description of the Plan. The Grantee
understands that the Plan is discretionary in nature and may be modified, suspended or
terminated by the Company at any time.
	 
	25.	 	Notice of Governing Law. This grant of Restricted Stock Units shall be governed by,
and construed in accordance with, the laws of the State of California without regard to
principles of conflict of laws.