Document:

Exhibit 10.2

Exhibit 10.2

OPNEXT, INC.

46429 Landing Parkway

Fremont, California 94538

This Second Amended and Restated Employment Agreement (this “Agreement”) is entered
into as of August 16, 2011 (the “Effective Date”), by and between Opnext, Inc., a Delaware
corporation (“Opnext” or the “Company”), and Robert J. Nobile
(“Executive”). This Agreement amends and restates in its entirety the Prior Agreement (as
defined below).

WHEREAS, Executive and Opnext are currently parties to that certain Amended and Restated
Employment Letter entered into by and between Opnext and Executive, dated as of December 31, 2008,
as amended on May 15, 2009 and March 10, 2011 (the “Prior Agreement”); and

WHEREAS, Executive and Opnext wish to amend and restate the Prior Agreement on the terms and
conditions set forth in this Agreement.

NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

	 	 	 
	1. Employer:

	 	Opnext, Inc.
	 
	 	 
	2. Employee:

	 	Robert J. Nobile
	 
	 	 
	3. Position and
Duties:

	 	Executive shall be the Senior Vice President,
Finance and Chief Financial Officer of Opnext and
shall have the normal duties, responsibilities,
functions and authority of a Senior Vice President
of Finance and Chief Financial Officer of a company
the size and structure of Opnext. Executive shall
report directly to the Chief Executive Officer of
Opnext (“CEO”). Executive shall exercise such
further responsibilities and perform such further
duties as directed from time to time by the CEO and
the Board of Directors of Opnext (the “Board”).
	 
	 	 
	4. Base Salary:

	 	$325,000 per annum
	 
	 	 
	5. Bonuses:

	 	In addition to Executive’s base salary, (i) provided
that Executive remains employed by Opnext through
the six (6)-month anniversary of the Effective Date,
Opnext shall pay Executive a lump-sum cash bonus
payment equal to $120,000 within ten (10) business
days after such date (the “First Retention Bonus”),
and (ii) provided that Executive remains employed by
Opnext through the twelve (12)-month anniversary of
the Effective Date, Opnext shall pay Executive an
additional lump-sum cash bonus payment equal to
$530,000 within ten (10) business days after such
date (the “Second Retention Bonus” and together with
the First Retention Bonus, the “Retention Bonuses”).
Subject to the foregoing, the Retention
Bonuses shall be paid to Executive irrespective of whether the Company has
achieved the performance targets established by the Board or the
Compensation Committee of the Board for the payment of bonuses under and
pursuant to the Company’s annual incentive bonus plan. Except as provided
in Section 10 and 13, in the event that Executive’s employment is terminated
for any reason, Executive shall not be entitled to receive any Retention
Bonus not previously paid to him.

 

 

	 	 	 
	 

	 	In addition to the Retention Bonuses, commencing on the one-year anniversary
of the Effective Date, Executive will be eligible to participate in the
Company’s annual incentive bonus plan applicable to similarly situated
executives of the Company. Any annual bonus payable to Executive with
respect to the Company’s 2013 fiscal year shall be prorated to reflect the
period of time during such fiscal year for which Executive was eligible to
participate in the Company’s annual incentive bonus plan. The amount of
Executive’s annual bonus will be based on the attainment of individual
and/or Company performance criteria established and evaluated by the Company
in accordance with the terms of such bonus plan as in effect from time to
time, provided that, subject to the terms of such bonus plan, Executive’s
target annual bonus will be 70% of his annual base salary actually paid for
such year. Any annual bonus payable to Executive with respect to a partial
year of employment shall be prorated to reflect the period of time during
which Executive was employed by the Company in such year. Each annual bonus
shall be awarded under, and subject to the terms and conditions of, Opnext’s
Second Amended and Restated 2001 Long Term Stock Incentive Plan, as amended
from time to time (the “Stock Incentive Plan”), and, if payable,
shall be paid to Executive no later than the last day of the applicable two
and one-half (2 1/2) month short-term deferral period with respect to such
payment, within the meaning of Treasury Regulation Section 1.409A-1(b)(4).
	 
	 	 
	6. At-Will
Employment:

	 	Executive’s employment with the Company is “at-will”
and is not for a specified period of time. Subject
to the Company’s obligations under Sections 10, 11
and 13 hereof, either Executive or the Company may
terminate Executive’s employment at any time and for
any reason whatsoever (or for no reason). This
at-will employment relationship cannot be changed
except in a writing signed by Executive and an
authorized representative of the Company.
	 
	 	 
	7. Benefits:

	 	Executive will be eligible to receive group welfare
and retirement benefits in accordance with Opnext
plans or policies as in effect from time to time. In
the event Executive decides to relocate his primary
residence in connection with Executive’s employment
with Opnext, Opnext shall reimburse Executive for
reasonable and customary moving expenses in
accordance with the Opnext plans or policies as in effect from time to time.

 

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	8. Vacation:

	 	Executive will receive four (4) weeks paid vacation time per annum.
	 
	 	 
	9. Annual
Performance
Reviews:

	 	Executive’s job performance shall be reviewed annually by the Board. In conjunction with such annual
performance review process, Executive will be eligible for salary increases, annual bonus awards
commencing with the Company’s 2013 fiscal year (the bonus target is set forth under Section 5 above) and
stock options or other equity-based awards, which will be subject to Company policy and vesting terms.
Salary increases, annual bonuses and stock options or other equity-based awards are awarded at the
discretion of the Board or the Compensation Committee of the Board and will be determined by the Board
or the Compensation Committee of the Board in its sole discretion based on the overall performance of
Opnext as well as Executive’s individual performance.
	 
	 	 
	10. Termination
Without Cause
or For Good
Reason:

	 	

In the event that Executive incurs a “separation from service” (within the meaning of Section
409A(a)(2)(A)(i) of the Internal Revenue Code of 1986, as amended (the “Code”), and Treasury Regulation
Section 1.409A-1(h)) (“Separation from Service”) by reason of (a) a termination of Executive’s
employment by the Company without Cause (as defined below) or (b) Executive’s resignation for Good
Reason (as defined below), the Company shall pay Executive as severance a lump-sum cash payment equal to
one (1.0) times (the “Severance Multiple”) his then current annual base salary (the “Severance
Payment”).
	 
	 	 
	 

	 	In addition, in the event that, prior to payment in full of the Retention
Bonuses, Executive incurs a Separation from Service by reason of (a) a
termination of Executive’s employment by the Company without Cause or (b)
Executive’s resignation for Good Reason, the Company shall pay Executive a
lump-sum cash payment in an amount equal to any theretofore unpaid Retention
Bonuses (the “Unpaid Retention Bonus Payment”).
	 
	 	 
	 

	 	Subject to the Payment Delay (as defined below), the Severance Payment and
any Unpaid Retention Bonus Payment, as applicable, shall be paid to
Executive on the sixtieth (60th) day after the date of such
Separation from Service. Executive’s right to receive the Severance Payment
and any Unpaid Retention Bonus Payment is conditioned on and subject to
Executive’s execution within 21 days (or, to the extent required by
applicable law, 45 days) following the date of Executive’s Separation
from Service and non-revocation by Executive of a general release of claims
substantially in the form attached hereto as Exhibit A. For
purposes of clarification, a termination of Executive’s employment by reason
of Executive’s death or Disability (as defined below) shall not be deemed to
be a termination by the Company “without Cause” for purposes of this
Agreement.

 

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	 	The Severance Payment and the Unpaid Retention Bonus Payment are intended to
satisfy the short-term deferral exemption under Treasury Regulation Section
1.409A-1(b)(4) and shall be made not later than the last day of the
applicable two and one-half (2 1/2) month short-term deferral period with
respect to the Severance Payment or Unpaid Retention Bonus Payment, as
applicable, within the meaning of Treasury Regulation Section
1.409A-1(b)(4).
	 
	 	 
	 

	 	“Good Reason” as used herein shall mean the occurrence of any
of the following without the consent of Executive:
	 
	 	 
	 

	 	(i)   a material and substantial diminution of
Executive’s duties or responsibilities; or

	 
	 	 
	 

	 	(ii)  a material reduction by Opnext of Executive’s
base salary or target bonus as set forth in Section 5 above;

	 
	 
	 

	 	provided, however, that (1) in no event will any change in Executive’s
position, title, duties or responsibilities as Senior Vice President,
Finance constitute “Good Reason” for purposes of this Agreement or any other
agreement, and (2) Executive’s resignation shall only constitute a
resignation for Good Reason hereunder if (x) Executive provides the Company
with written notice setting forth the specific facts or circumstances
constituting Good Reason within 20 days after the initial existence of such
facts or circumstances, (y) the Company has failed to cure such facts or
circumstances within 30 days after receipt of such written notice, and (z)
the date of Executive’s Separation from Service occurs no later than 60 days
after the initial occurrence of the facts or circumstances constituting Good
Reason.
	 
	 	 
	 

	 	Except as set forth above, upon termination by Opnext without Cause or
resignation by Executive for Good Reason, Executive shall not be entitled to
receive any further compensation or payments hereunder (except for
Executive’s unpaid Base Salary, accrued vacation and expense reimbursements
relating to the period prior to the date of termination of employment). In
the event of such a termination, any stock options or other equity-based
awards held by Executive shall be subject to the provisions of the incentive
award plan and applicable award agreement pursuant to which such awards were
granted.

 

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	 	Notwithstanding anything to the contrary in this Agreement, no compensation
or benefits, including without limitation, the Severance Payment and the
Unpaid Retention Bonus Payment, shall be paid to Executive during the
six-month period following Executive’s Separation from Service if the
Company determines that paying such amounts at the time or times indicated
in this Agreement would be a prohibited distribution under Section
409A(a)(2)(B)(i) of the Code. If the payment of any such amounts is delayed
as a result of the previous sentence (the “Payment Delay”), then on
the first business day following the end of such six-month period (or such
earlier date upon which such amount can be paid under Section 409A of the
Code without resulting in a prohibited distribution, including as a result
of Executive’s death), the Company shall pay Executive a lump-sum amount
equal to the cumulative amount that would have otherwise been payable to
Executive during such six-month period.
	 
	 	 
	11. Change in
Control
Termination:

	 	Subject to the Payment Delay, if a Change in Control
occurs and Executive incurs a Separation from
Service by reason of (a) a termination of
Executive’s employment by the Company without Cause
or (b) Executive’s resignation for Good Reason, in
each case immediately prior to or upon the Change in
Control, or within the one (1) year period following
the Change in Control, then Executive shall be
entitled to the Severance Payment, subject to and in
accordance with the terms and conditions set forth
in Section 10 (including, without limitation, the
requirement that Executive execute and not revoke
the Release), except that for purposes of this
Section 11, the Severance Multiple for the Severance
Payment shall be two (2.0) instead of one (1.0).
	 
	 	 
	 

	 	For purposes of this Agreement, “Change in Control”
shall have the meaning set forth in the Stock
Incentive Plan.
	 
	 	 
	12. Termination
For Cause:

	 	“Cause” as utilized herein shall mean:
	 
	 	 
	 

	 	(i)   the commission of a felony or the commission of any other act or
omission involving dishonesty or fraud with respect to Opnext or any of its
subsidiaries or affiliates or any of their customers or suppliers;

	 
	 	 
	 

	 	(ii)  conduct that brings Opnext or any of its subsidiaries or affiliates
into substantial public disgrace or disrepute;

	 
	 	 
	 

	 	(iii)  any material breach of the Confidentiality Agreement referred to
below;

 

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	 	(iv) fraud or embezzlement with respect to Opnext or any of its subsidiaries
or affiliates;

	 
	 	 
	 

	 	(v)  gross negligence or willful misconduct with respect to Opnext or any of
its subsidiaries or affiliates; or

	 
	 	 
	 

	 	(vi) repeated failure to perform in any material respect Executive’s duties
as directed by the Board.

	 
	 	 
	 

	 	Upon notice by Opnext to Executive of a termination for Cause, the
“Termination Date” shall be the date on which such notice is mailed
or hand-delivered, or as otherwise specified in the notice of termination,
to Executive. Upon termination for Cause or resignation by Executive
without Good Reason, Executive shall not be entitled to receive any further
compensation or payments hereunder (except for Executive’s unpaid Base
Salary, accrued vacation and expense reimbursements relating to the period
prior to the Termination Date). In the event of a termination for Cause,
any unvested stock options or other equity-based awards held by Executive
shall be subject to the provisions of the incentive award plan and
applicable award agreement.
	 
	 	 
	13. Death or
Disability:

	 	In the event that Executive incurs a Separation from Service
by reason of Executive’s death or Disability, the Company
shall pay Executive a pro-rata portion of the Retention
Bonuses in an amount equal to the unpaid Retention Bonuses as
of the date of such Separation from Service multiplied by a
fraction, the numerator of which is equal to the number of
days that have elapsed from the Effective Date through the
date of such Separation from Service and the denominator of
which is equal to 365 (the “Pro-Rata Retention Bonus”).
	 
	 	 
	 

	 	Subject to the Payment Delay, the Pro-Rata Retention Bonus
shall be paid to Executive in a lump-sum on the sixtieth
(60th) day after the date of such Separation from
Service. In the event of a Separation from Service by reason
of Executive’s Disability, Executive’s right to receive the
Pro-Rata Retention Bonus Payment is conditioned on and subject
to Executive’s execution within 21 days (or, to the extent
required by applicable law, 45 days) following the date of
Executive’s Separation from Service and non-revocation by
Executive of a general release of claims substantially in the
form attached hereto as Exhibit A.
	 
	 	 
	 

	 	“Disability” as used herein shall mean that Executive is unable to
effectively perform his duties and responsibilities, as determined by the
Board for more than 180 days during any twelve (12) month period by reason
or any physical or mental injury, illness or incapacity.

 

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	14. Confidential
Information:

	 	Executive acknowledges that during the course of
performing services for Opnext, Executive will
have substantial access to trade secrets and other
confidential information of Opnext and its
subsidiaries. In connection with the execution of
this Agreement, Executive hereby agrees to enter
into a Confidential Information Agreement with
Opnext as reasonably requested by Opnext in a form
prescribed by Opnext (the “Confidentiality
Agreement”) in part to restrict the disclosure by
Executive of such trade secrets and other
confidential information.
	 
	 	 
	15. Restrictions:

	 	Executive represents and warrants to Opnext that
there are no restrictions or agreements or
limitations on Executive’s right or ability to
enter into this Agreement or perform the terms set
forth herein.
	 
	 	 
	16. Withholdings:

	 	All payments set forth herein which are subject to
withholding shall be made less any required
withholdings.
	 
	 	 
	17. Binding
Arbitration:

	 	Any controversy arising out of or relating to this
Agreement or the Confidentiality Agreement shall
be settled by binding arbitration in New York
City, New York in accordance with the Commercial
Arbitration Rules of the American Arbitration
Association. The award rendered in any such
proceeding shall be final and binding, and
judgment upon the award may be entered in any
court having jurisdiction thereof. The costs of
any such arbitration proceedings shall be borne
equally by Opnext and Executive. Neither party
shall be entitled to recover attorneys’ fee or
costs expended in the course of such arbitration
or enforcement of the award rendered thereunder.
	 
	 	 
	18. Governing Law:

	 	All issues and questions concerning the
construction, validity, enforcement and
interpretation of this Agreement shall be governed
by, and construed in accordance with, the internal
laws of the State of Delaware, without giving
effect to any choice of law or conflict of law
provision or rule (whether of the State of
Delaware or any other jurisdiction) that would
cause the application of the laws of any
jurisdiction other than the State of Delaware.
	 
	 	 
	19. Notices:

	 	All notices in connection herewith or provided for
hereunder shall be validly given or made only if
made in writing and delivered personally or mailed
by registered or certified mail, return receipt
requested, postage prepaid, to the party entitled
or required to receive the same, as follows:
	 
	 	 
	 

	 	If to Executive, addressed to him at his most recent address
on the records of the Company.

 

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	 	If to the Company, addressed to:

	 
	 	 
	 

	 	Opnext, Inc.

46429 Landing Parkway

Fremont, California 94538

Attention: General Counsel

	 
	 	 
	20. Section 409A:

	 	To the extent applicable, this Agreement shall be
interpreted and applied consistent and in
accordance with Section 409A of the Code and
Department of Treasury regulations and other
interpretive guidance issued thereunder.
Notwithstanding any provision of this Agreement to
the contrary, if the Company determines that any
compensation or benefits payable under this
Agreement may not be either exempt from or
compliant with Section 409A of the Code and related
Department of Treasury guidance, the Company may in
its sole discretion adopt such amendments to this
Agreement or adopt other policies and procedures
(including amendments, policies and procedures with
retroactive effect), or take any other actions,
that the Company determines are necessary or
appropriate to (i) exempt the compensation and
benefits payable under this Agreement from Section
409A of the Code and/or preserve the intended tax
treatment of such compensation and benefits, or
(ii) comply with the requirements of Section 409A
of the Code and related Department of Treasury
guidance; provided, however, that this Section 20
shall not create any obligation on the part of the
Company to adopt any such amendment, policy or
procedure or take any such other action.
	 
	 	 
	 

	 	To the extent permitted under Section 409A of the
Code, any separate payment or benefit under this
Agreement or otherwise shall not be deemed
“nonqualified deferred compensation” subject to
Section 409A of the Code and the Payment Delay
pursuant to Section 10 hereof to the extent
provided in the exceptions in Treasury Regulation
Section 1.409A-1(b)(4), Section 1.409A-1(b)(9) or
any other applicable exception or provision of
Section 409A of the Code.
	 
	 	 
	 

	 	To the extent that any payments or reimbursements
provided to Executive under this Agreement,
including without limitation under Section 7
hereof, are deemed to constitute compensation to
which Treasury Regulation Section
1.409A-3(i)(1)(iv) would apply, such amounts shall
be paid or reimbursed to Executive reasonably
promptly, but not later than December 31 of the
year following the year in which the expense was
incurred. The amount of any such payments eligible
for reimbursement in one year shall not affect the
payments or expenses that are eligible for payment
or reimbursement in any other taxable year, and
Executive’s right to such payments or reimbursement
shall not be subject to liquidation or exchange for
any other benefit.

[Signature Page Follows]

 

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SIGNATURE PAGE TO AGREEMENT

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year
first above written.

	 	 	 	 	 
	 	OPNEXT, INC.

 	 
	 	By:  	/s/ Harry L. Bosco
 	 
	 	 	Harry L. Bosco 	 
	 	 	CEO and President 	 
	 
	 	AGREED TO AND ACCEPTED:

 	 
	 	/s/ Robert J. Nobile
 	 
	 	Name:  Robert J. Nobile 	 

 

9

 

EXHIBIT A

GENERAL RELEASE OF CLAIMS

For valuable consideration, the receipt and adequacy of which are hereby acknowledged, the
undersigned does hereby release and forever discharge the “Releasees” hereunder, consisting of
Opnext, Inc. and each of its partners, associates, affiliates, subsidiaries, successors, heirs,
assigns, agents, directors, officers, employees, shareholders, representatives, lawyers,
accountants, insurers, and all persons acting by, through, under or in concert with them, or any of
them, of and from any and all manner of action or actions, cause or causes of action, in law or in
equity, suits, debts, liens, contracts, agreements, promises, liability, claims, demands, damages,
losses, costs, attorneys’ fees or expenses, of any nature whatsoever, known or unknown, fixed or
contingent (hereinafter called “Claims”), which the undersigned now has or may hereafter have
against the Releasees, or any of them, by reason of any matter, cause, or thing whatsoever from the
beginning of time to the date hereof. The Claims released herein include, without limiting the
generality of the foregoing, any Claims in any way arising out of, based upon, or related to the
employment or termination from employment of the undersigned by the Releasees, or any of them; any
Claim for benefits under any stock option or other equity-based incentive plan of the Releasees (or
any related agreement to which any Releasee is a party); any alleged breach of any express or
implied contract of employment; any alleged torts or other alleged legal restrictions on the
Releasees’ right to terminate the employment of the undersigned; and any alleged violation of any
federal, state or local statute or ordinance including, without limitation, Title VII of the Civil
Rights Act of 1964, the Age Discrimination In Employment Act, the Americans With Disabilities Act,
and the California Fair Employment and Housing Act. Notwithstanding the foregoing, this Release
shall not operate to release any Claims which the undersigned may have to payments or benefits
under Section 10, 11 or 13 of that certain Second Amended and Restated Employment Agreement, dated
as of August [_____], 2011, by and between Opnext, Inc. and the undersigned.

THE UNDERSIGNED ACKNOWLEDGES THAT HE HAS BEEN ADVISED BY LEGAL COUNSEL AND IS FAMILIAR WITH
THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS FOLLOWS:

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO
EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY
AFFECTED HIS SETTLEMENT WITH THE DEBTOR.”

THE UNDERSIGNED, BEING AWARE OF SAID CODE SECTION, HEREBY EXPRESSLY WAIVES ANY RIGHTS HE MAY
HAVE THEREUNDER, AS WELL AS UNDER ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT.

IN ACCORDANCE WITH THE OLDER WORKERS BENEFIT PROTECTION ACT OF 1990, THE UNDERSIGNED IS HEREBY
ADVISED AS FOLLOWS:

 

1

 

(1) HE HAS THE RIGHT TO CONSULT WITH AN ATTORNEY BEFORE SIGNING THIS RELEASE;

(2) HE HAS TWENTY-ONE (21) DAYS TO CONSIDER THIS RELEASE BEFORE SIGNING IT; AND

(3) HE HAS SEVEN (7) DAYS AFTER SIGNING THIS RELEASE TO REVOKE IT, AND THIS RELEASE WILL
BECOME EFFECTIVE UPON THE EXPIRATION OF THAT REVOCATION PERIOD.

The undersigned represents and warrants that there has been no assignment or other transfer of
any interest in any Claim which he may have against the Releasees, or any of them, and the
undersigned agrees to indemnify and hold the Releasees, and each of them, harmless from any
liability, Claims, demands, damages, costs, expenses and attorneys’ fees incurred by the Releasees,
or any of them, as the result of any such assignment or transfer or any rights or Claims under any
such assignment or transfer. It is the intention of the parties that this indemnity does not
require payment as a condition precedent to recovery by the Releasees against the undersigned under
this indemnity.

The undersigned agrees that if he hereafter commences any suit arising out of, based upon, or
relating to any of the Claims released hereunder or in any manner asserts against the Releasees, or
any of them, any of the Claims released hereunder, then the undersigned agrees to pay to the
Releasees, and each of them, in addition to any other damages caused to the Releasees thereby, all
attorneys’ fees incurred by the Releasees in defending or otherwise responding to said suit or
Claim.

The undersigned further understands and agrees that neither the payment of any sum of money
nor the execution of this Release shall constitute or be construed as an admission of any liability
whatsoever by the Releasees, or any of them, who have consistently taken the position that they
have no liability whatsoever to the undersigned.

IN WITNESS WHEREOF, the undersigned has executed this Release this
 _____ 

day of
 _____ 

20___.

	 	 	 
	 

Robert J. Nobile

	 	 

 

2Exhibit 10.3

Exhibit 10.3

OPNEXT, INC.

46429 Landing Parkway

Fremont, California 94538

This Second Amended and Restated Employment Agreement (this “Agreement”) is entered
into as of August 23, 2011 (the “Effective Date”), by and between Opnext, Inc., a Delaware
corporation (“Opnext” or the “Company”), and Justin John O’Neill
(“Executive”). This Agreement amends and restates in its entirety the Prior Agreement (as
defined below).

WHEREAS, Executive and Opnext are currently parties to that certain Amended and Restated
Employment Agreement entered into by and between Opnext and Executive, dated as of December 31,
2008, as amended on May 15, 2009 (the “Prior Agreement”); and

WHEREAS, Executive and Opnext wish to amend and restate the Prior Agreement on the terms and
conditions set forth in this Agreement.

NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

	 	 	 
	1. Employer:

	 	Opnext, Inc.
	 
	 	 
	2. Employee:

	 	Justin John O’Neill
	 
	 	 
	3. Position and
Duties:

	 	Executive shall be the Senior Vice President and General Counsel of Opnext and shall
have the normal duties, responsibilities, functions and authority of a senior vice
president and general counsel for a company the size and structure of Opnext. Executive
shall report directly to the Chief Executive Officer of Opnext (“CEO”). Executive
will provide advice and counsel on various corporate matters including mergers and
acquisitions, joint ventures and strategic partnerships, licensing and related IP issues,
development agreements, operations, and finance. Executive shall exercise such further
responsibilities and perform such further duties as directed from time to time by the CEO
and the Board of Directors of Opnext (the “Board”).
	 
	 	 
	4. Base Salary:

	 	$306,000 per annum, subject to increase from time to time as determined by the
Board or the Compensation Committee of the Board in its sole discretion.

 

 

	 	 	 
	5. Annual Bonus:

	 	Executive will be eligible to participate in the Company’s annual incentive
bonus plan applicable to similarly situated executives of the Company. The amount of
Executive’s annual bonus will be based on the attainment of individual and/or Company
performance criteria established and evaluated by the Company in accordance with the terms of
such bonus
plan as in effect from time to time, provided that, subject to the terms of
such bonus plan, Executive’s target annual bonus will be 70% of his Base
Salary. Each annual bonus shall be awarded under, and subject to the terms
and conditions of, Opnext’s Second Amended and Restated 2001 Long Term Stock
Incentive Plan, as amended from time to time (the “Stock Incentive
Plan”), and, if payable, shall be paid not later than the last day of
the applicable two and one-half (2 1/2) month short-term deferral period with
respect to such payment, within the meaning of Treasury Regulation Section
1.409A-1(b)(4).
	 
	 	 
	6. At-Will
Employment:

	 	Executive’s employment with the Company is “at-will” and is not for a specified
period of time. Subject to the Company’s obligations under Sections 10 and 11 hereof,
either Executive or the Company may terminate Executive’s employment at any time and for
any reason whatsoever (or for no reason). This at-will employment relationship cannot be
changed except in a writing signed by Executive and an authorized representative of the
Company.
	 
	 	 
	7. Benefits:

	 	Executive will be eligible to receive group welfare and retirement benefits in
accordance with Opnext plans or policies as in effect from time to time. In the event
Executive decides to relocate his primary residence in connection with Executive’s employment
with Opnext, Opnext shall, subject to Section 19 hereof, reimburse Executive for reasonable
and customary moving expenses in accordance with Opnext plans or policies as in effect from
time to time.
	 
	 	 
	8. Vacation:

	 	Executive will receive four (4) weeks paid vacation time per annum.
	 
	 	 
	9. Annual
Performance
Reviews:

	 	Executive’s job performance shall be reviewed annually by the Board. In conjunction with such annual
performance review process, Executive will be eligible for salary increases, annual bonus awards (the bonus
target is set forth under Section 5 above) and stock options or other equity-based awards, which will be
subject to Company policy and vesting terms. Salary increases, annual bonuses and stock options or other
equity-based awards are awarded at the discretion of the Board or the Compensation Committee of the Board and
will be determined by the Board or the Compensation Committee of the Board in its sole discretion based on the
overall performance of Opnext as well as Executive’s individual performance.

 

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	10. Termination
Without Cause
or For Good
Reason:

	 	In the event that Executive incurs a “separation from service” (within the meaning of Section 409A(a)(2)(A)(i)
of the Internal Revenue Code of 1986, as amended (the “Code”), and Treasury Regulation Section 1.409A-1(h))
(“Separation from Service”) by reason of (a) a termination of Executive’s employment by the Company without
Cause (as defined below) or (b) Executive’s resignation for Good Reason (as defined below), the Company shall
pay Executive as severance a lump-sum cash payment equal to one (1.0) times (the “Severance Multiple”) his then
current annual Base Salary (the “Severance Payment”). Subject to the Payment Delay (as defined below), the
Severance Payment shall be paid to Executive on the sixtieth (60th) day after the date of such
Separation from Service. Executive’s right to receive the Severance Payment is conditioned on and subject to
Executive’s execution within 21 days (or, to the extent required by applicable law, 45 days) following the date
of Executive’s Separation from Service and non-revocation by Executive of a general release of claims
substantially in the form attached hereto as Exhibit A. For purposes of clarification, a termination of
Executive’s employment by reason of Executive’s death or Disability (as defined below) shall not be deemed to
be a termination by the Company “without Cause” for purposes of this Agreement.
	 
	 	 
	 

	 	The Severance Payment is intended to satisfy the short-term deferral
exemption under Treasury Regulation Section 1.409A-1(b)(4) and shall be made
not later than the last day of the applicable two and one-half (2 1/2) month
short-term deferral period with respect to the Severance Payment, within the
meaning of Treasury Regulation Section 1.409A-1(b)(4).
	 
	 	 
	 

	 	“Good Reason” as used herein shall mean the occurrence of any of the
following without the consent of Executive:
	 
	 	 
	 

	 	(i)   a material and substantial diminution of
Executive’s authority, duties or responsibilities; or

	 
	 	 
	 

	 	(ii)  a material reduction by Opnext of Executive’s
Base Salary or target bonus as set forth in Section 5 above;

	 
	 	 
	 

	 	provided, however, that Executive’s resignation shall only constitute a
resignation for Good Reason hereunder if (x) Executive provides the Company
with written notice setting forth the specific facts or circumstances
constituting Good Reason within 20 days after the initial existence of such
facts or circumstances, (y) the Company has failed to cure such facts or
circumstances within 30 days after receipt of such written notice, and (z)
the date of Executive’s Separation from Service occurs no later than 60 days
after the initial occurrence of the facts or circumstances constituting Good
Reason.

 

3

 

	 	 	 
	 

	 	Except as set forth above, upon termination by Opnext without Cause or
resignation by Executive for Good Reason, Executive shall not be entitled to
receive any further compensation or payments hereunder (except for
Executive’s unpaid Base Salary, accrued vacation and expense reimbursements
relating to the period prior to the date of termination of employment). In
the event of such a termination, any stock options or other equity-based
awards held by Executive shall be subject to the provisions of the incentive
award plan and applicable award agreement pursuant to which such awards were
granted.
	 
	 	 
	 

	 	Notwithstanding anything to the contrary in this Agreement, no compensation
or benefits, including without limitation, the Severance Payment, shall be
paid to Executive during the six-month period following Executive’s
Separation from Service if the Company determines that paying such amounts
at the time or times indicated in this Agreement would be a prohibited
distribution under Section 409A(a)(2)(B)(i) of the Code. If the payment of
any such amounts is delayed as a result of the previous sentence (the
“Payment Delay”), then on the first business day following the end
of such six-month period (or such earlier date upon which such amount can be
paid under Section 409A of the Code without resulting in a prohibited
distribution, including as a result of Executive’s death), the Company shall
pay Executive a lump-sum amount equal to the cumulative amount that would
have otherwise been payable to Executive during such six-month period.
	 
	 	 
	 

	 	“Disability” as used herein shall mean that Executive is unable to
effectively perform his duties and responsibilities, as determined by the
Board for more than 180 days during any twelve (12) month period by reason
or any physical or mental injury, illness or incapacity.
	 
	 	 
	11. Change in
Control
Termination:

	 	Subject to the Payment Delay, if a Change in Control
occurs and Executive incurs a Separation from
Service by reason of (a) a termination of
Executive’s employment by the Company without Cause
or (b) Executive’s resignation for Good Reason, in
each case immediately prior to or upon the Change in
Control, or within the one (1) year period following
the Change in Control, then Executive shall be
entitled to the Severance Payment, subject to and in
accordance with the terms and conditions set forth
in Section 10 (including, without limitation, the
requirement that Executive execute and not revoke
the Release), except that for purposes of this
Section 11, the Severance Multiple for the Severance
Payment shall be two (2.0) instead of one (1.0).
	 
	 	 
	 

	 	For purposes of this Agreement, “Change in Control”
shall have the meaning set forth in the Stock
Incentive Plan.

 

4

 

	 	 	 
	12. Termination
For Cause:

	 	“Cause” as utilized herein shall mean:
	 
	 	 
	 

	 	(i)   the commission of a felony or the commission of
any other act or omission involving dishonesty or fraud with respect to
Opnext or any of its subsidiaries or affiliates or any of their
customers or suppliers;

	 
	 	 
	 

	 	(ii)  conduct that brings Opnext or any of its
subsidiaries or affiliates into substantial public disgrace or
disrepute;

	 
	 	 
	 

	 	(iii)  any material breach of the Confidentiality
Agreement referred to below;

	 
	 	 
	 

	 	(iv) fraud or embezzlement with respect to Opnext or
any of its subsidiaries or affiliates;

	 
	 	 
	 

	 	(v)  gross negligence or willful misconduct with
respect to Opnext or any of its subsidiaries or affiliates; or

	 
	 	 
	 

	 	(vi) repeated failure to perform in any material
respect Executive’s duties as directed by the Board.

	 
	 	 
	 

	 	Upon notice by Opnext to Executive of a termination for Cause, the
“Termination Date” shall be the date on which such notice is mailed
or hand-delivered, or as otherwise specified in the notice of termination,
to Executive. Upon termination for Cause or resignation by Executive
without Good Reason, Executive shall not be entitled to receive any further
compensation or payments hereunder (except for Executive’s unpaid Base
Salary, accrued vacation and expense reimbursements relating to the period
prior to the Termination Date). In the event of a termination for Cause,
any unvested stock options or other equity-based awards held by Executive
shall be subject to the provisions of the incentive award plan and
applicable award agreement.
	 
	 	 
	13. Confidential
Information:

	 	Executive hereby acknowledges and agrees that he has previously entered into a
Confidentiality Agreement with Opnext (the “Confidentiality Agreement”) in part to
restrict the disclosure by Executive of such trade secrets and other confidential
information and that such agreement remains in full force and effect.
	 
	 	 
	14. Restrictions:

	 	Executive represents and warrants to Opnext that there are no restrictions or
agreements or limitations on Executive’s right or ability to enter into this Agreement or
perform the terms set forth herein.

 

5

 

	 	 	 
	15. Withholding:

	 	All payments set forth herein which are subject to withholding shall be made
less any required withholdings.
	 
	 	 
	16. Binding
Arbitration:

	 	Any controversy arising out of or relating to this
Agreement or the Confidentiality Agreement shall be settled
by binding arbitration in New York City, New York in
accordance with the Commercial Arbitration Rules of the
American Arbitration Association. The award rendered in
any such proceeding shall be final and binding, and
judgment upon the award may be entered in any court having
jurisdiction thereof. The costs of any such arbitration
proceedings shall be borne equally by Opnext and Executive.
Neither party shall be entitled to recover attorneys’ fee
or costs expended in the course of such arbitration or
enforcement of the award rendered thereunder.
	 
	 	 
	17. Governing
Law:

	 	All issues and questions concerning the construction,
validity, enforcement and interpretation of this Agreement
shall be governed by, and construed in accordance with, the
internal laws of the State of Delaware, without giving
effect to any choice of law or conflict of law provision or
rule (whether of the State of Delaware or any other
jurisdiction) that would cause the application of the laws
of any jurisdiction other than the State of Delaware.
	 
	 	 
	18. Notices:

	 	All notices in connection herewith or provided for hereunder shall be validly given
or made only if made in writing and delivered personally or mailed by registered or certified
mail, return receipt requested, postage prepaid, to the party entitled or required to receive
the same, as follows:
	 
	 	 
	 

	 	If to Executive, addressed to him at his most recent address on the
records of the Company.

	 
	 	 
	 

	 	If to the Company, addressed to:

	 
	 	 
	 

	 	Opnext, Inc.

46429 Landing Parkway

Fremont, California 94538

Attention: Chief Executive Officer

 

6

 

	 	 	 
	19. Section 409A:

	 	To the extent applicable, this Agreement shall be interpreted and applied
consistent and in accordance with Section 409A of the Code and Department of Treasury
regulations and other interpretive guidance issued thereunder. Notwithstanding any provision
of this Agreement to the contrary, if the Company determines that any compensation or benefits
payable under this Agreement may not be either exempt from or compliant
with Section 409A of the Code and related Department of Treasury guidance,
the Company may in its sole discretion adopt such amendments to this
Agreement or adopt other policies and procedures (including amendments,
policies and procedures with retroactive effect), or take any other actions,
that the Company determines are necessary or appropriate to (i) exempt the
compensation and benefits payable under this Agreement from Section 409A of
the Code and/or preserve the intended tax treatment of such compensation and
benefits, or (ii) comply with the requirements of Section 409A of the Code
and related Department of Treasury guidance; provided,
however, that this Section 19 shall not create any obligation on the
part of the Company to adopt any such amendment, policy or procedure or take
any such other action.
	 
	 	 
	 

	 	To the extent permitted under Section 409A of the Code, any separate payment
or benefit under this Agreement or otherwise shall not be deemed
“nonqualified deferred compensation” subject to Section 409A of the Code and
the Payment Delay pursuant to Section 10 hereof to the extent provided in
the exceptions in Treasury Regulation Section 1.409A-1(b)(4), Section
1.409A-1(b)(9) or any other applicable exception or provision of Section
409A of the Code.
	 
	 	 
	 

	 	To the extent that any payments or reimbursements provided to Executive
under this Agreement, including without limitation under Section 7 hereof,
are deemed to constitute compensation to which Treasury Regulation Section
1.409A-3(i)(1)(iv) would apply, such amounts shall be paid or reimbursed to
Executive reasonably promptly, but not later than December 31 of the year
following the year in which the expense was incurred. The amount of any
such payments eligible for reimbursement in one year shall not affect the
payments or expenses that are eligible for payment or reimbursement in any
other taxable year, and Executive’s right to such payments or reimbursement
shall not be subject to liquidation or exchange for any other benefit.

[Signature Page Follows]

 

7

 

SIGNATURE PAGE TO AGREEMENT

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year
first above written.

	 	 	 	 	 
	 	OPNEXT, INC.

 	 
	 	By:  	/s/ Harry L. Bosco
 	 
	 	 	Harry L. Bosco

 CEO and President 	 
	 
	 	AGREED TO AND ACCEPTED:

 	 
	 	/s/ Justin J. O’Neill
 	 
	 	Name:  Justin John O’Neill 	 

 

8

 

EXHIBIT A

GENERAL RELEASE OF CLAIMS

For valuable consideration, the receipt and adequacy of which are hereby acknowledged, the
undersigned does hereby release and forever discharge the “Releasees” hereunder, consisting of
Opnext, Inc. and each of its partners, associates, affiliates, subsidiaries, successors, heirs,
assigns, agents, directors, officers, employees, shareholders, representatives, lawyers,
accountants, insurers, and all persons acting by, through, under or in concert with them, or any of
them, of and from any and all manner of action or actions, cause or causes of action, in law or in
equity, suits, debts, liens, contracts, agreements, promises, liability, claims, demands, damages,
losses, costs, attorneys’ fees or expenses, of any nature whatsoever, known or unknown, fixed or
contingent (hereinafter called “Claims”), which the undersigned now has or may hereafter have
against the Releasees, or any of them, by reason of any matter, cause, or thing whatsoever from the
beginning of time to the date hereof. The Claims released herein include, without limiting the
generality of the foregoing, any Claims in any way arising out of, based upon, or related to the
employment or termination from employment of the undersigned by the Releasees, or any of them; any
Claim for benefits under any stock option or other equity-based incentive plan of the Releasees (or
any related agreement to which any Releasee is a party); any alleged breach of any express or
implied contract of employment; any alleged torts or other alleged legal restrictions on the
Releasees’ right to terminate the employment of the undersigned; and any alleged violation of any
federal, state or local statute or ordinance including, without limitation, Title VII of the Civil
Rights Act of 1964, the Age Discrimination In Employment Act, the Americans With Disabilities Act,
and the California Fair Employment and Housing Act. Notwithstanding the foregoing, this Release
shall not operate to release any Claims which the undersigned may have to payments or benefits
under Section 10 or Section 11 of that certain Second Amended and Restated Employment Agreement,
dated as of August 18, 2011, by and between Opnext, Inc. and the undersigned.

THE UNDERSIGNED ACKNOWLEDGES THAT HE HAS BEEN ADVISED BY LEGAL COUNSEL AND IS FAMILIAR WITH
THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS FOLLOWS:

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO
EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY
AFFECTED HIS SETTLEMENT WITH THE DEBTOR.”

THE UNDERSIGNED, BEING AWARE OF SAID CODE SECTION, HEREBY EXPRESSLY WAIVES ANY RIGHTS HE MAY
HAVE THEREUNDER, AS WELL AS UNDER ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT.

 

1

 

IN ACCORDANCE WITH THE OLDER WORKERS BENEFIT PROTECTION ACT OF 1990, THE UNDERSIGNED IS HEREBY
ADVISED AS FOLLOWS:

(1) HE HAS THE RIGHT TO CONSULT WITH AN ATTORNEY BEFORE SIGNING THIS RELEASE;

(2) HE HAS TWENTY-ONE (21) DAYS TO CONSIDER THIS RELEASE BEFORE SIGNING IT; AND

(3) HE HAS SEVEN (7) DAYS AFTER SIGNING THIS RELEASE TO REVOKE IT, AND THIS RELEASE WILL
BECOME EFFECTIVE UPON THE EXPIRATION OF THAT REVOCATION PERIOD.

The undersigned represents and warrants that there has been no assignment or other transfer of
any interest in any Claim which he may have against the Releasees, or any of them, and the
undersigned agrees to indemnify and hold the Releasees, and each of them, harmless from any
liability, Claims, demands, damages, costs, expenses and attorneys’ fees incurred by the Releasees,
or any of them, as the result of any such assignment or transfer or any rights or Claims under any
such assignment or transfer. It is the intention of the parties that this indemnity does not
require payment as a condition precedent to recovery by the Releasees against the undersigned under
this indemnity.

The undersigned agrees that if he hereafter commences any suit arising out of, based upon, or
relating to any of the Claims released hereunder or in any manner asserts against the Releasees, or
any of them, any of the Claims released hereunder, then the undersigned agrees to pay to the
Releasees, and each of them, in addition to any other damages caused to the Releasees thereby, all
attorneys’ fees incurred by the Releasees in defending or otherwise responding to said suit or
Claim.

The undersigned further understands and agrees that neither the payment of any sum of money
nor the execution of this Release shall constitute or be construed as an admission of any liability
whatsoever by the Releasees, or any of them, who have consistently taken the position that they
have no liability whatsoever to the undersigned.

IN WITNESS WHEREOF, the undersigned has executed this Release this
 _____ 
day of
 _____ 
20___.

	 	 	 
	 

Justin John O’Neill

	 	 

 

2

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