Document:

Prepared by R.R. Donnelley Financial -- The Amended 2000 ESPP

 EXHIBIT 4.2 
  
  
 NEW FOCUS, INC. 
  
 2000 EMPLOYEE STOCK PURCHASE PLAN 
 (Amended January 2002) 
  
 The following constitute the provisions of the 2000 Employee
Stock Purchase Plan of New Focus, Inc. 
  
 1.  Purpose.    The purpose of the Plan is to
provide employees of the Company and its Designated Subsidiaries with an opportunity to purchase Common Stock of the Company through accumulated payroll deductions. It is the intention of the Company to have the Plan qualify as an “Employee
Stock Purchase Plan” under Section 423 of the Internal Revenue Code of 1986, as amended. The provisions of the Plan, accordingly, shall be construed so as to extend and limit participation in a manner consistent with the requirements of that
section of the Code. 
  
 2.  Definitions. 
  
 (a)  “Board” shall mean the Board of Directors of the Company or any committee thereof designated by the Board of Directors of the Company in
accordance with Section 14 of the Plan. 
  
 (b)  “Code” shall mean the Internal
Revenue Code of 1986, as amended. 
  
 (c)  “Common Stock” shall mean the common stock
of the Company. 
  
 (d)  “Company” shall mean New Focus, Inc. and any Designated
Subsidiary of the Company. 
  
 (e)  “Compensation” shall mean all base straight time
gross earnings and commissions, but exclusive of payments for overtime, shift premium, incentive compensation, other bonuses and other compensation. 
  
 (f)  “Designated Subsidiary” shall mean any Subsidi­ary that has been designated by the Board from time to time in its sole discretion as
eligible to participate in the Plan. 
  
 (g)  “Employee” shall mean any individual who
is an Employee of the Company for tax purposes whose customary employment with the Company is at least twenty (20) hours per week and more than five (5) months in any calendar year. For purposes of the Plan, the employment relationship shall be
treated as continuing intact while the individual is on sick leave or other leave of absence approved by the Company. Where the period of leave exceeds 90 days and the individual’s right to reemployment is not guaranteed either by statute or by
contract, the employment relationship shall be deemed to have terminated on the 91st day of such leave. 
  
 (h)  “Enrollment Date” shall mean the first Trading Day of each Offering Period. 

  
 (i)  “Exercise Date” shall mean the last Trading
Day of each Purchase Period. 
  
 (j)  “Fair Market Value” shall mean, as of any date,
the value of Common Stock determined as follows: 
  
 (i)  If the Common Stock is listed on any
established stock exchange or a national market system, including without limitation the Nasdaq National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for such stock (or the
closing bid, if no sales were reported) as quoted on such exchange or system for the last market trading day prior to the date of determination, as reported in The Wall Street Journal or such other source as the Board deems reliable;

  
 (ii)  If the Common Stock is regularly quoted by a recognized securities dealer but selling prices
are not reported, its Fair Market Value shall be the mean of the closing bid and asked prices for the Common Stock prior to the date of determination, as reported in The Wall Street Journal or such other source as the Board deems reliable;

  
 (iii)  In the absence of an established market for the Common Stock, the Fair Market Value thereof
shall be determined in good faith by the Board; or 
  
 (iv)  For purposes of the Enrollment Date of the
first Offering Period under the Plan, the Fair Market Value shall be the initial price to the public as set forth in the final prospectus included within the registration statement in Form S-1 filed with the Securities and Exchange Commission for
the initial public offering of the Company’s Common Stock (the “Registration Statement”). 
  
 (k)  “Offering Periods” shall mean the periods of approximately twenty-four (24) months during which an option granted pursuant to the Plan may be exercised, commencing on the first Trading Day on or after January
31 and July 31 of each year and terminating on the last Trading Day in the periods ending twenty-four months later; provided, however, that the first Offering Period under the Plan shall commence with the first Trading Day on or after the date on
which the Securities and Exchange Commission declares the Company’s Registration Statement effective and ending on the last Trading Day on or before July 31, 2002. The duration and timing of Offering Periods may be changed pursuant to Section 4
of this Plan. 
  
 (l)  “Plan” shall mean this 2000 Employee Stock Purchase Plan.

  
 (m)  “Purchase Period” shall mean the approximately six month period commencing
after one Exercise Date and ending with the next Exercise Date, except that the first Purchase Period of any Offering Period shall commence on the Enrollment Date and end with the next Exercise Date. 
  
 (n)  “Purchase Price” shall mean 85% of the Fair Market Value of a share of Common Stock on the Enrollment
Date or on the Exercise Date, whichever is lower; provided however, that the Purchase Price may be adjusted by the Board pursuant to Section 20. 
 

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 (o)  “Reserves” shall mean the number of shares of
Common Stock covered by each option under the Plan which have not yet been exercised and the number of shares of Common Stock which have been authorized for issuance under the Plan but not yet placed under option. 
  
 (p)  “Subsidiary” shall mean a corporation, domestic or foreign, of which not less than 50% of the voting
shares are held by the Company or a Subsidiary, whether or not such corporation now exists or is hereafter organized or acquired by the Company or a Subsidiary. 
  
 (q)  “Trading Day” shall mean a day on which national stock exchanges and the Nasdaq System are open for trading. 
  
 3.  Eligibility. 
  
 (a)  Any Employee who shall be employed by the Company on a given Enrollment Date shall be eligible to participate in the Plan. 
  
 (b)  Any provisions of the Plan to the contrary notwithstanding, no Employee shall be granted an option under the Plan (i) to the extent that, immediately
after the grant, such Employee (or any other person whose stock would be attributed to such Employee pursuant to Section 424(d) of the Code) would own capital stock of the Company and/or hold outstanding options to purchase such stock possessing
five percent (5%) or more of the total combined voting power or value of all classes of the capital stock of the Company or of any Subsidiary, or (ii) to the extent that his or her rights to purchase stock under all employee stock purchase plans of
the Company and its subsidiaries accrues at a rate which exceeds Twenty-Five Thousand Dollars ($25,000) worth of stock (determined at the fair market value of the shares at the time such option is granted) for each calendar year in which such option
is outstanding at any time. 
  
 4.  Offering Periods.    The Plan shall be implemented by
consecutive, overlapping Offering Periods with a new Offering Period commencing on the first Trading Day on or after January 31 and July 31 each year, or on such other date as the Board shall determine, and continuing thereafter until terminated in
accordance with Section 20 hereof; provided, however, that the first Offering Period under the Plan shall commence with the first Trading Day on or after the date on which the Securities and Exchange Commission declares the Company’s
Registration Statement effective and ending on the last Trading Day on or before July 31, 2002. The Board shall have the power to change the duration of Offering Periods (includ­ing the commencement dates thereof) with respect to future
offerings without shareholder approval if such change is announced at least five (5) days prior to the scheduled begin­ning of the first Offering Period to be affected thereafter. 
  
 5.  Participation. 
  
 (a)  An eligible Employee may become a participant in the Plan by completing a subscription agreement authorizing payroll deductions in the form of Exhibit A to this Plan and filing it with the Company’s payroll office prior
to the applicable Enrollment Date. 
  
 (b)  Payroll deductions for a participant shall commence on the
first payroll following the Enrollment Date and shall end on the last payroll in the Offering Period to which such authorization is applicable, unless sooner terminated by the participant as provided in Section 10 hereof. 
 

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 6.  Payroll Deductions. 
  

(a)  At the time a participant files his or her subscription agreement, he or she shall elect to have payroll deductions made on each pay day during the
Offering Period in an amount not exceeding fifteen (15%) of the Compensation which he or she receives on each pay day during the Offering Period. 
  
 (b)  All payroll deductions made for a participant shall be credited to his or her account under the Plan and shall be withheld in whole percentages only. A
participant may not make any additional payments into such account. 
  
 (c)  A participant may
discontinue his or her participation in the Plan as provided in Section 10 hereof, or may decrease the rate of his or her payroll deductions during the Offering Period by completing or filing with the Company a new subscription agreement authorizing
a decrease in payroll deduction rate. Any decrease in rate shall be effective with the first full payroll period following five (5) business days after the Company’s receipt of the new subscription agreement unless the Company elects to process
a given change in participation more quickly. A participant may only increase the rate of his or her payroll deductions once every six (6) months. Such increase shall become effective with the first full payroll period following the commencement of
the subsequent Purchase Period. The Board may, in its discretion, limit the number of participation rate changes during any Offering Period. A participant’s subscription agreement shall remain in effect for successive Offering Periods unless
terminated as provided in Section 10 hereof. 
  
 (d)  Notwithstanding the foregoing, to the extent
necessary to comply with Section 423(b)(8) of the Code and Section 3(b) hereof, a participant’s payroll deductions may be decreased to zero percent (0%) at any time during a Purchase Period. Payroll deductions shall recommence at the rate
provided in such participant’s subscription agreement at the beginning of the first Purchase Period which is scheduled to end in the following calendar year, unless terminated by the participant as provided in Section 10 hereof. 

 
 (e)  At the time the option is exercised, in whole or in part, or at the time some or all of the Company’s
Common Stock issued under the Plan is disposed of, the participant must make adequate provision for the Company’s federal, state, or other tax withholding obligations, if any, which arise upon the exercise of the option or the disposition of
the Common Stock. At any time, the Company may, but shall not be obligated to, withhold from the participant’s compensation the amount necessary for the Company to meet applicable withholding obligations, including any withholding required to
make available to the Company any tax deductions or benefits attributable to sale or early disposition of Common Stock by the Employee. 
  
 7.  Grant of Option.    On the Enrollment Date of each Offering Period, each eligible Employee participating in such Offering Period shall be granted an option to purchase on each Exercise Date during
such Offering Period (at the applicable Purchase Price) up to a number of shares of the Company’s Common Stock determined by dividing such Employee’s payroll deductions accumulated prior to such Exercise Date and retained in the
Participant’s account as of the Exercise Date by the applicable Purchase Price; provided that in no event shall an Employee be permitted to purchase during each Purchase Period more than 5,000 shares of the Company’s Common Stock (subject
to any adjustment pursuant to Section 19), and provided further that such purchase shall be 
 

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 subject to the limitations set forth in Sections 3(b) and 12 hereof. The Board may, for future Offering Periods,
increase or decrease, in its absolute discretion, the maximum number of shares of the Company’s Common Stock an Employee may purchase during each Purchase Period of such Offering Period. Exercise of the option shall occur as provided in Section
8 hereof, unless the participant has withdrawn pursuant to Section 10 hereof. The option shall expire on the last day of the Offering Period. 
  
 8.  Exercise of Option. 
  
 (a)  Unless a participant
withdraws from the Plan as provided in Section 10 hereof, his or her option for the purchase of shares shall be exercised automatically on the Exercise Date, and the maximum number of full shares subject to option shall be purchased for such
participant at the applicable Purchase Price with the accumulated payroll deductions in his or her account. No fractional shares shall be purchased; any payroll deductions accumulated in a participant’s account which are not sufficient to
purchase a full share shall be retained in the participant’s account for the subsequent Purchase Period or Offering Period, subject to earlier withdrawal by the participant as provided in Section 10 hereof. Any other monies left over in a
participant’s account after the Exercise Date shall be returned to the participant. During a participant’s lifetime, a participant’s option to purchase shares hereunder is exercisable only by him or her. 
  
 (b)  If the Board determines that, on a given Exercise Date, the number of shares with respect to which options are to be
exercised may exceed (i) the number of shares of Common Stock that were available for sale under the Plan on the Enrollment Date of the applicable Offering Period, or (ii) the number of shares available for sale under the Plan on such Exercise Date,
the Board may in its sole discretion (x) provide that the Company shall make a pro rata allocation of the shares of Common Stock available for purchase on such Enrollment Date or Exercise Date, as applicable, in as uniform a manner as shall be
practicable and as it shall determine in its sole discretion to be equitable among all participants exercising options to purchase Common Stock on such Exercise Date, and continue all Offering Periods then in effect, or (y) provide that the Company
shall make a pro rata allocation of the shares available for purchase on such Enrollment Date or Exercise Date, as applicable, in as uniform a manner as shall be practicable and as it shall determine in its sole discretion to be equitable among all
participants exercising options to purchase Common Stock on such Exercise Date, and terminate any or all Offering Periods then in effect pursuant to Section 20 hereof. The Company may make pro rata allocation of the shares available on the
Enrollment Date of any applicable Offering Period pursuant to the preceding sentence, notwithstanding any authorization of additional shares for issuance under the Plan by the Company’s shareholders subsequent to such Enrollment Date.

  
 9.  Delivery.    As promptly as practicable after each Exercise Date on which a purchase
of shares occurs, the Company shall arrange the delivery to each participant, as appropriate, of a certificate representing the shares purchased upon exercise of his or her option. 
  
 10.  Withdrawal. 
  
 (a)  A participant may withdraw all but not less than all the payroll deductions credited to his or her account and not yet used to exercise his or her option under the Plan at any 
 

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 time by giving written notice to the Company in the form of Exhibit B to this Plan. All of the participant’s payroll deductions
credited to his or her account shall be paid to such participant promptly after receipt of notice of withdrawal and such participant’s option for the Offering Period shall be automatically terminated, and no further payroll deductions for the
purchase of shares shall be made for such Offering Period. If a participant withdraws from an Offering Period, payroll deductions shall not resume at the beginning of the succeeding Offering Period unless the participant delivers to the Company a
new subscription agreement. 
  
 (b)  A participant’s withdrawal from an Offering Period shall not
have any effect upon his or her eligibility to participate in any similar plan which may hereafter be adopted by the Company or in succeeding Offering Periods which commence after the termination of the Offering Period from which the participant
withdraws. 
  
 11.  Termination of Employment. 
  
 Upon a participant’s ceasing to be an Employee, for any reason, he or she shall be deemed to have elected to withdraw from the Plan and the payroll deductions credited to such
participant’s account during the Offering Period but not yet used to exercise the option shall be returned to such participant or, in the case of his or her death, to the person or persons entitled thereto under Section 15 hereof, and such
participant’s option shall be automatically terminated. The preceding sentence notwithstanding, a participant who receives payment in lieu of notice of termination of employment shall be treated as continuing to be an Employee for the
participant’s customary number of hours per week of employment during the period in which the participant is subject to such payment in lieu of notice. 
  
 12.  Interest.    No interest shall accrue on the payroll deductions of a participant in the Plan. 
  
 13.  Stock. 
  
 (a)  Subject to adjustment upon changes in capitalization of the Company as provided in Section 19 hereof, the maximum number of shares of the Company’s Common Stock which shall be made available for sale under the Plan shall
be 2,754,319 shares plus an annual increase to be added on the first day of the Company’s fiscal year, equal to the lesser of (i) 1,000,000 shares, (ii) 1.25% of the outstanding shares on such date or (iii) a lesser amount determined by the
Board. 
  
 (b)  The participant shall have no interest or voting right in shares covered by his option
until such option has been exercised. 
  
 (c)  Shares to be delivered to a participant under the Plan
shall be registered in the name of the participant or in the name of the participant and his or her spouse. 
  
 14.  Administration.    The Plan shall be administered by the Board or a committee of members of the Board appointed by the Board. The Board or its committee shall have full and exclusive discretionary
authority to construe, interpret and apply the terms of the Plan, to determine eligibility and to adjudicate all disputed claims filed under the Plan. Every finding, decision and 
 

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 determination made by the Board or its committee shall, to the full extent permitted by law, be final and binding upon all parties. 
  
 15.  Designation of Beneficiary. 
  
 (a)  A participant may file a written designation of a beneficiary who is to receive any shares and cash, if any, from the participant’s account under
the Plan in the event of such participant’s death subsequent to an Exercise Date on which the option is exercised but prior to delivery to such participant of such shares and cash. In addition, a participant may file a written designation of a
beneficiary who is to receive any cash from the participant’s account under the Plan in the event of such participant’s death prior to exercise of the option. If a participant is married and the designated beneficiary is not the spouse,
spousal consent shall be required for such designation to be effective. 
  
 (b)  Such designation of
beneficiary may be changed by the participant at any time by written notice. In the event of the death of a participant and in the absence of a beneficiary validly designated under the Plan who is living at the time of such participant’s death,
the Company shall deliver such shares and/or cash to the executor or administrator of the estate of the participant, or if no such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may
deliver such shares and/or cash to the spouse or to any one or more dependents or relatives of the participant, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate. 

 
 16.  Transferability.    Neither payroll deductions credited to a participant’s account nor any
rights with regard to the exercise of an option or to receive shares under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and distribution or as provided in Section 15
hereof) by the participant. Any such attempt at assignment, transfer, pledge or other disposition shall be without effect, except that the Company may treat such act as an election to withdraw funds from an Offering Period in accordance with Section
10 hereof. 
  
 17.  Use of Funds.    All payroll deductions received or held by the Company
under the Plan may be used by the Company for any corporate purpose, and the Company shall not be obligated to segregate such payroll deductions. 
  
 18.  Reports.    Individual accounts shall be maintained for each participant in the Plan. Statements of account shall be given to participating Employees at least annually, which
statements shall set forth the amounts of payroll deductions, the Purchase Price, the number of shares purchased and the remaining cash balance, if any. 
  
 19.  Adjustments Upon Changes in Capitalization, Dissolution, Liquidation, Merger or Asset Sale. 
  
 (a)  Changes in Capitalization.    Subject to any required action by the shareholders of the Company, the Reserves, the maximum
number of shares each participant may purchase each Purchase Period (pursuant to Section 7), as well as the price per share and the number of shares of Common Stock covered by each option under the Plan which has not yet been exercised shall be
proportionately adjusted for any increase or decrease in the number of issued shares of Common Stock resulting from a stock split, reverse stock split, stock dividend, combination or reclassification 
 

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 of the Common Stock, or any other increase or decrease in the number of shares of Common Stock effected without receipt of
consideration by the Company; provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.” Such adjustment shall be made by the Board, whose
determination in that respect shall be final, binding and conclusive. Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no
adjustment by reason thereof shall be made with respect to, the number or price of shares of Common Stock subject to an option. 
  
 (b)  Dissolution or Liquidation.    In the event of the proposed dissolution or liquidation of the Company, the Offering Period then in progress shall be shortened by setting a new
Exercise Date (the “New Exercise Date”), and shall terminate immediately prior to the consummation of such proposed dissolution or liquidation, unless provided otherwise by the Board. The New Exercise Date shall be before the date of the
Company’s proposed dissolution or liquidation. The Board shall notify each participant in writing, at least ten (10) business days prior to the New Exercise Date, that the Exercise Date for the participant’s option has been changed to the
New Exercise Date and that the participant’s option shall be exercised automatically on the New Exercise Date, unless prior to such date the participant has withdrawn from the Offering Period as provided in Section 10 hereof. 

 
 (c)  Merger or Asset Sale.    In the event of a proposed sale of all or substantially
all of the assets of the Company, or the merger of the Company with or into another corporation, each outstanding option shall be assumed or an equivalent option substituted by the successor corporation or a Parent or Subsidiary of the successor
corporation. In the event that the successor corporation refuses to assume or substitute for the option, any Purchase Periods then in progress shall be shortened by setting a new Exercise Date (the “New Exercise Date”) and any Offering
Periods then in progress shall end on the New Exercise Date. The New Exercise Date shall be before the date of the Company’s proposed sale or merger. The Board shall notify each participant in writing, at least ten (10) business days prior to
the New Exercise Date, that the Exercise Date for the participant’s option has been changed to the New Exercise Date and that the participant’s option shall be exercised automatically on the New Exercise Date, unless prior to such date the
participant has withdrawn from the Offering Period as provided in Section 10 hereof. 
  
 20.  Amendment or
Termination. 
  
 (a)  The Board of Directors of the Company may at any time and for any reason
terminate or amend the Plan. Except as provided in Section 19 hereof, no such termination can affect options previously granted, provided that an Offering Period may be terminated by the Board of Directors on any Exercise Date if the Board
determines that the termination of the Offering Period or the Plan is in the best interests of the Company and its shareholders. Except as provided in Section 19 and this Section 20 hereof, no amendment may make any change in any option theretofore
granted which adversely affects the rights of any participant. To the extent necessary to comply with Section 423 of the Code (or any successor rule or provision or any other applicable law, regulation or stock exchange rule), the Company shall
obtain shareholder approval in such a manner and to such a degree as required. 
 

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 (b)  Without shareholder consent and without regard to whether any
participant rights may be considered to have been “adversely affected,” the Board (or its committee) shall be entitled to change the Offering Periods, limit the frequency and/or number of changes in the amount withheld during an Offering
Period, establish the exchange ratio applicable to amounts withheld in a currency other than U.S. dollars, permit payroll withholding in excess of the amount designated by a participant in order to adjust for delays or mistakes in the Company’s
processing of properly completed withholding elections, establish reasonable waiting and adjustment periods and/or accounting and crediting procedures to ensure that amounts applied toward the purchase of Common Stock for each participant properly
correspond with amounts withheld from the participant’s Compensation, and establish such other limitations or procedures as the Board (or its committee) determines in its sole discretion advisable which are consistent with the Plan.

  
 (c)  In the event the Board determines that the ongoing operation of the Plan may result in
unfavorable financial accounting consequences, the Board may, in its discretion and, to the extent necessary or desirable, modify or amend the Plan to reduce or eliminate such accounting consequence including, but not limited to: 

 
 (i)  altering the Purchase Price for any Offering Period including an Offering Period underway at the time of the
change in Purchase Price; 
  
 (ii)  shortening any Offering Period so that Offering Period ends on a
new Exercise Date, including an Offering Period underway at the time of the Board action; and 
  
 (iii)  allocating shares. 
  
 Such modifications or amendments shall not require stockholder approval or the
consent of any Plan participants. 
  
 21.  Notices.    All notices or other communications by
a participant to the Company under or in connection with the Plan shall be deemed to have been duly given when received in the form specified by the Company at the location, or by the person, designated by the Company for the receipt thereof.

  
 22.  Conditions Upon Issuance of Shares.    Shares shall not be issued with respect to an
option unless the exercise of such option and the issuance and delivery of such shares pursuant thereto shall comply with all applicable provisions of law, domestic or foreign, including, without limitation, the Securities Act of 1933, as amended,
the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, and the requirements of any stock exchange upon which the shares may then be listed, and shall be further subject to the approval of counsel for the
Company with respect to such compliance. 
  
 As a condition to the exercise of an option, the Company may require the person
exercising such option to represent and warrant at the time of any such exercise that the shares are being purchased only for investment and without any present intention to sell or distribute such shares if, in the opinion of counsel for the
Company, such a representation is required by any of the aforementioned applicable provisions of law. 
 

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 23.  Term of Plan.    The Plan shall become effective upon
the earlier to occur of its adoption by the Board of Directors or its approval by the shareholders of the Company. It shall continue in effect for a term of ten (10) years unless sooner terminated under Section 20 hereof. 
  
 24.  Automatic Transfer to Low Price Offering Period.    To the extent permitted by any applicable laws,
regulations, or stock exchange rules if the Fair Market Value of the Common Stock on any Exercise Date in an Offering Period is lower than the Fair Market Value of the Common Stock on the Enrollment Date of such Offering Period, then all
participants in such Offering Period shall be automatically withdrawn from such Offering Period immediately after the exercise of their option on such Exercise Date and automatically re-enrolled in the immediately following Offering Period as of the
first day thereof. 
 

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 EXHIBIT A 
  
 NEW FOCUS,
INC. 
  
 2000 EMPLOYEE STOCK PURCHASE PLAN 
  
 SUBSCRIPTION AGREEMENT 
  

	            Original Application 
 	Enrollment Date:             
 

            Change in Payroll Deduction Rate 
             Change
of Beneficiary(ies) 
  

	1.
	 
	                            hereby
elects to participate in the New Focus, Inc. Employee Stock Purchase Plan (the “Employee Stock Purchase Plan”) and sub­scribes to purchase shares of the Company’s Common Stock in accordance with this Sub­scription Agreement
and the Employee Stock Purchase Plan. 
 

  

	2.
	 
	I hereby authorize payroll deductions from each paycheck in the amount of        % of my Compensation on each payday (from 0
to        %) during the Offering Period in accordance with the Employee Stock Purchase Plan. (Please note that no fractional percentages are permitted.) 
 

  

	3.
	 
	I understand that said payroll deductions shall be accumulated for the purchase of shares of Common Stock at the applicable Purchase Price determined in accordance with the
Employee Stock Purchase Plan. I understand that if I do not withdraw from an Offering Period, any accumulated payroll deductions will be used to automatically exercise my option. 
 

  

	4.
	 
	I have received a copy of the complete Employee Stock Purchase Plan. I understand that my participation in the Employee Stock Purchase Plan is in all respects subject to the
terms of the Plan. I understand that my ability to exercise the option under this Subscription Agreement is subject to share­holder approval of the Employee Stock Purchase Plan. 
 

  

	5.
	 
	Shares purchased for me under the Employee Stock Purchase Plan should be issued in the name(s) of (Employee or Employee and Spouse only). 
 

 

	6.
	 
	I understand that if I dispose of any shares received by me pursuant to the Plan within 2 years after the Enrollment Date (the first day of the Offering Period during which I
purchased such shares) or one year after the Exercise Date, I will be treated for federal income tax purposes as having received ordinary income at the time of such disposition in an amount equal to the excess of the fair market value of the shares
at the time such shares were purchased by me over the price which I paid for the shares. I hereby agree to notify the Company in writing within 30 days after the date of any disposition of my shares and I will make adequate provision for Federal,
state or other tax withholding obligations, if any, which arise upon the 
 

 

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 disposition of the Common Stock. The Company may, but will not be obligated to, withhold from my compensation the amount
neces­sary to meet any applicable withholding obligation including any withholding necessary to make available to the Company any tax deductions or benefits attributable to sale or early disposition of Common Stock by me. If I dispose of such
shares at any time after the expiration of the 2-year and 1-year holding periods, I understand that I will be treated for federal income tax purposes as having received income only at the time of such disposition, and that such income will be taxed
as ordinary income only to the extent of an amount equal to the lesser of (1) the excess of the fair market value of the shares at the time of such disposition over the purchase price which I paid for the shares, or (2) 15% of the fair market value
of the shares on the first day of the Offering Period. The remainder of the gain, if any, recognized on such disposition will be taxed as capital gain. 
  

	7.
	 
	I hereby agree to be bound by the terms of the Employee Stock Purchase Plan. The effectiveness of this Subscription Agreement is dependent upon my eligibility to participate in
the Employee Stock Purchase Plan. 
 

  

	8.
	 
	In the event of my death, I hereby designate the following as my beneficiary(ies) to receive all payments and shares due me under the Employee Stock Purchase Plan:

 

  
 
	 NAME:  (Please print)
 	  	 

	  	  	                             (First)          
                      (Middle)                 
               (Last)
 	 	  
	  	  	  
	 
Relationship
 	  	 

	  	  	 
(Address)
 

 
 

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	 Employee’s Social
 Security Number:
 	 	  
  
 
	 	  	 	  	 	  
	 
	 Employee’s Address:
 	 	  
 
	 	  	 	  	 	  
	 
	  	 	  
 
	 	  	 	  	 	  
	 
	  	 	  
 
	 	  	 	  	 	  

 
  
 I UNDERSTAND THAT THIS SUBSCRIPTION AGREEMENT SHALL REMAIN IN EFFECT THROUGHOUT SUCCESSIVE OFFERING
PERIODS UNLESS TERMINATED BY ME. 
  
 
	 
	 Dated:
 	 	  
 
	 	  	 	  	 	  
 

	  	 	  	 	  	 	  	 	 Signature of Employee
 
	 
	  	 	  	 	  	 	  	 	  
 

	  	 	  	 	  	 	  	 	 Spouse’s Signature (If beneficiary other than spouse)
 

 
 

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 EXHIBIT B 
  
 NEW FOCUS, INC. 
  
 2000 EMPLOYEE STOCK PURCHASE PLAN 
  
 NOTICE OF WITHDRAWAL 
  
 The
undersigned participant in the Offering Period of the New Focus, Inc. Employee Stock Purchase Plan which began on
                        ,              (the “Enrollment
Date”) hereby notifies the Company that he or she hereby withdraws from the Offering Period. He or she hereby directs the Company to pay to the undersigned as promptly as practicable all the payroll deductions credited to his or her account
with respect to such Offering Period. The undersigned understands and agrees that his or her option for such Offering Period will be automatically terminated. The undersigned understands further that no further payroll deductions will be made for
the purchase of shares in the current Offering Period and the undersigned shall be eligible to participate in succeeding Offering Periods only by delivering to the Company a new Subscription Agreement. 
  
  
 
	 Name and Address of Participant:
 
	 
	  
 

	 
	  
 

	 
	  
 

	 
	 Signature:
 
	 
	  
 

	 
	 Dated:
 	 	  
 

 
 

 14Prepared by R.R. Donnelley Financial -- The Amended 2001 Stock Plan

 EXHIBIT 4.3 
  
  
 NEW FOCUS, INC. 
  
 2001 STOCK PLAN 
 (Amended February 2002) 
  
 1.  Purposes of the
Plan.    The purposes of this Plan are: 
  

	 	•
	 
	to attract and retain the best available personnel for positions of substantial responsibility; 
 

  

	 	•
	 
	to provide additional incentive to Employees and Consultants; and 
 

  

	 	•
	 
	to promote the success of the Company’s business. 
 

  
 Options granted under the Plan will be Nonstatutory Stock Options. Stock Appreciation Rights, Restricted Stock Awards and Stock Purchase Rights may also be granted under the Plan. 
  
 2.  Definitions.    As used herein, the following definitions shall apply: 
  
 (a)  “Administrator” means the Board or any of its Committees as shall be administering the Plan, in
accordance with Section 4 of the Plan. 
  
 (b)  “Applicable Laws” means the
requirements relating to the administration of equity compensation plans under U.S. state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and the
applicable laws of any foreign country or jurisdiction where Options are, or will be, granted under the Plan. 
  
 (c)  “Board” means the Board of Directors of the Company. 
  
 (d)  “Code” means the Internal Revenue Code of 1986, as amended. 
  
 (e)  “Committee” means a committee of Directors appointed by the Board in accordance with Section 4 of the Plan. 
  
 (f)  “Common Stock” means the Common Stock of the Company. 
  
 (g)  “Company” means New Focus, Inc., a Delaware corporation. 
  
 (h)  “Consultant” means any person, including a technical advisory board member, engaged by the Company or a Parent or Subsidiary to render
services to such entity. 
  
 (i)  “Director” means a member of the Board.

 (j)  “Disability” means total and permanent disability as defined in Section 22(e)(3) of
the Code. 
  
 (k)  “Employee” means any person, including Officers and employee
Directors, employed by the Company or any Parent or Subsidiary of the Company. A Service Provider shall not cease to be an Employee in the case of (i) any leave of absence approved by the Company or (ii) transfers between locations of the Company or
between the Company, its Parent, any Subsidiary, or any successor. Neither service as a Director nor payment of a director’s fee by the Company shall be sufficient to constitute “employment” by the Company. 
  
 (l)  “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 (m)  “Fair Market Value” means, as of any date, the value of Common Stock determined as follows:

  
 (i)  If the Common Stock is listed on any established stock exchange or a national market system,
including without limitation The Nasdaq National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such
exchange or system for the last market trading day prior to the time of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; 
  
 (ii)  If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, the Fair Market Value of a Share of
Common Stock shall be the mean between the high bid and low asked prices for the Common Stock on the last market trading day prior to the day of determination, as reported in The Wall Street Journal or such other source as the Administrator deems
reliable; 
  
 (iii)  In the absence of an established market for the Common Stock, the Fair Market
Value shall be determined in good faith by the Administrator. 
  
 (n)  “Notice of
Grant” means a written or electronic notice evidencing certain terms and conditions of an individual Option grant. The Notice of Grant is part of the Option Agreement. 
  
 (o)  “Officer” means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and
regulations promulgated thereunder. 
  
 (p)  “Option” means a nonstatutory stock
option granted pursuant to the Plan that is not intended to qualify as an incentive stock option within the meaning of Section 422 of the Code and the regulations promulgated thereunder. 
  
 (q)  “Option Agreement” means a written or electronic agreement between the Company and an Optionee evidencing the terms and conditions of an
individual Option grant. The Option Agreement is subject to the terms and conditions of the Plan. 
 

 2 

  
 (r)  “Option Exchange Program” means a program
whereby outstanding Options are surrendered in exchange for Options with a lower exercise price. 
  
 (s)  “Optioned Stock” means the Common Stock subject to an Option, a SAR or a Stock Purchase Right. 
  
 (t)  “Optionee” means the holder of an outstanding Option, Stock Purchase Right, SAR or Restricted Stock Award granted under the Plan. 
  

(u)  “Parent” means a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e) of the Code.

  
 (v)  “Plan” means this 2001 Stock Plan. 
  
 (w)  “Restricted Stock” means shares of Common Stock acquired pursuant to a grant of a Restricted Stock
Award under Section 11 below. 
  
 (x)  “Service Provider” means an Employee
(including an Officer), Consultant or Director. 
  
 (y)  “Share” means a share of the
Common Stock, as adjusted in accordance with Section 15 of the Plan. 
  
 (z)  “Stock
Appreciation Right” or “SAR” means an award issued pursuant to Section 12 below. 
  
 (aa)  “Stock Purchase Right” means a right to purchase Common Stock pursuant to Section 13 below. 
  
 (bb)  “Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing, as defined in Section 424(f) of the Code. 
  
 3.  Stock Subject to the Plan.    Subject to the provisions of Section 15 of the Plan, the maximum aggregate number
of Shares which may be optioned and sold under the Plan is three hundred thousand (300,000) Shares. The Shares may be authorized, but unissued, or reacquired Common Stock. 
  
 If an Option, Stock Purchase Right, SAR or Restricted Stock Award expires or becomes unexercisable without having been exercised in full, is surrendered pursuant to an Option Exchange
Program, or with respect to a Restricted Stock Award, is forfeited back to the Company, the unpurchased Shares (or for Restricted Stock Awards, the forfeited shares) which were subject thereto shall become available for future grant or sale under
the Plan (unless the Plan has terminated). However, Shares that have actually been issued under the Plan, upon exercise of either an Option, Stock Purchase Right, SAR, or Restricted Stock Award shall not be returned to the Plan and shall not become
available for future distribution under the Plan, except that if Shares of 
 

 3 

 Restricted Stock are repurchased by the Company at their original purchase price or forfeited to the Company, such Shares shall become available for future
grant under the Plan. 
  
 4.  Administration of the Plan. 
  

(a)  Administration.    The Plan shall be administered by (i) the Board or (ii) a Committee, which committee shall be
constituted to satisfy Applicable Laws. 
  
 (b)  Powers of the
Administrator.    Subject to the provisions of the Plan, and in the case of a Committee, subject to the specific duties delegated by the Board to such Committee, the Administrator shall have the authority, in its discretion:

  
 (i)  to determine the Fair Market Value of the Common Stock; 
  
 (ii)  to select the Service Providers to whom Options, Stock Purchase Rights, SARs and Restricted Stock Awards may be
granted hereunder; 
  
 (iii)  to determine whether and to what extent Options, Stock Purchase Rights,
SARs and Restricted Stock Awards are granted hereunder; 
  
 (iv)  to determine the number of Shares of
Common Stock to be covered by each award granted hereunder; 
  
 (v)  to approve forms of agreement for
use under the Plan; 
  
 (vi)  to determine the terms and conditions, not inconsistent with the terms of
the Plan, of any award granted hereunder. Such terms and conditions include, but are not limited to, the exercise price, the time or times when Options, Stock Purchase Rights, SARs or Restricted Stock Awards may be exercised (which may be based on
performance criteria), any vesting acceleration or waiver of forfeiture restrictions, and any restriction or limitation regarding any Option, Stock Purchase Right, SAR or Restricted Stock Award or the Shares of Common Stock relating thereto, based
in each case on such factors as the Administrator, in its sole discretion, shall determine; 
  
 (vii)  to determine whether, and under what circumstances, Options, Stock Purchase Rights and SARs may be bought out in cash under subsection 10(e) of the Plan; 
  
 (viii)  to construe and interpret the terms of the Plan and awards granted pursuant to the Plan; 
  
 (ix)  to prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans established for the
purpose of qualifying for preferred tax treatment under foreign tax laws; 
 

 4 

 (x)  to modify or amend each agreement granted pursuant to this Plan (subject to Section 17 of the Plan),
including the discretionary authority to extend the post-termination exercisability period of Options longer than is otherwise provided for in the Plan; 
  
 (xi)  to authorize any person to execute on behalf of the Company any instrument required to effect the grant of an Option, Stock Purchase Right, SAR or
Restricted Stock Award previously granted by the Administrator; 
  
 (xii)  to determine the terms and
conditions applicable to Restricted Stock; 
  
 (xiii)  to allow Optionees to satisfy withholding tax
obligations by electing to have the Company withhold from the Shares to be issued upon exercise of an Option, Stock Purchase Right or SAR that number of Shares having a Fair Market Value equal to the amount required to be withheld. The Fair Market
Value of the Shares to be withheld shall be determined on the date that the amount of tax to be withheld is to be determined. All elections by an Optionee to have Shares withheld for this purpose shall be made in such form and under such conditions
as the Administrator may deem necessary or advisable; and 
  
 (xiv)  to make all other determinations
deemed necessary or advisable for administering the Plan. 
  
 (c)  Effect of Administrator’s
Decision.    All decisions, determinations and interpretations of the Administrator shall be final and binding on all Optionees. 
  
 5.  Eligibility.    Options may be granted to Service Providers (including former Employees); provided, however, that notwithstanding anything to the contrary contained in the
Plan, Options may not be granted to Officers and Directors. 
  
 6.  Limitation.    Neither the
Plan nor any Option, Stock Purchase Right, SAR or Restricted Stock Award shall confer upon an Optionee, including former Employees, any right with respect to continuing the Optionee’s relationship as a Service Provider with the Company nor
shall it interfere in any way with the Optionee’s right or the Company’s right to terminate such relationship at any time, with or without cause. 
  
 7.  Term of Plan.    The Plan shall become effective upon its adoption by the Board. It shall continue in effect for ten (10) years, unless sooner terminated under Section 17 of
the Plan. 
  
 8.  Term of Option.    The term of each Option shall be stated in the Option
Agreement. 
  
 9.  Option Exercise Price and Consideration. 
  

(a)  Exercise Price.    The per share exercise price for the Shares to be issued pursuant to exercise of an Option, Stock
Purchase Right or SAR shall be determined by the Administrator. 
 

 5 

 (b)  Waiting Period and Exercise Dates.    At the time an Option, Stock Purchase
Right or SAR is granted, the Administrator shall fix the period within which the Option, Stock Purchase Right or SAR may be exercised and shall determine any conditions which must be satisfied before the Option, Stock Purchase Right or SAR may be
exercised. 
  
 (c)  Form of Consideration.    The Administrator shall
determine the acceptable form of consideration for exercising an Option, including the method of payment. Such consideration may consist entirely of: 
  
 (i)  cash; 
  
 (ii)  check; 
  
 (iii)  promissory note; 
  
 (iv)  other Shares which (A) in the case of Shares acquired upon exercise of an option, have been owned by the Optionee for
more than six months on the date of surrender, and (B) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which said Option shall be exercised; 
  
 (v)  consideration received by the Company under a cashless exercise program implemented by the Company in connection with
the Plan; 
  
 (vi)  in settlement of claims against the Company; 
  
 (vii)  such other consideration and method of payment for the issuance of Shares to the extent permitted by Applicable Laws;
or 
  
 (viii)  any combination of the foregoing methods of payment. 
  
 10.  Exercise of Option. 
  
 (a)  Procedure for Exercise; Rights as a Stockholder.    Any Option granted hereunder shall be exercisable according to the terms of the Plan and at such times and under such
conditions as determined by the Administrator and set forth in the Option Agreement. An Option may not be exercised for a fraction of a Share. 
  
 An Option shall be deemed exercised when the Company receives: (i) written or electronic notice of exercise (in accordance with the Option Agreement) from the person entitled to exercise the Option, and (ii) full
payment for the Shares with respect to which the Option is exercised. Full payment may consist of any consideration and method of payment authorized by the Administrator and permitted by the Option Agreement and the Plan. Shares issued upon exercise
of an Option shall be issued in the name of the Optionee or, if requested by the Optionee, in the name of the Optionee and his or her spouse. Until the Shares are issued (as evidenced by the appropriate entry on the books of the Company or of a duly
authorized transfer agent of the Company), no right 
 

 6 

 to vote or receive dividends or any other rights as a stockholder shall exist with respect to the Optioned Stock, notwithstanding the exercise of the Option.
The Company shall issue (or cause to be issued) such Shares promptly after the Option is exercised. No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in
Section 15 of the Plan. 
  
 Exercising an Option in any manner shall decrease the number of Shares thereafter available, both for
purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised. 
  
 (b)  Termination of Relationship as a Service Provider.    If an Optionee ceases to be a Service Provider, other than upon the Optionee’s death or Disability, the Optionee may exercise his or her
Option, but only within such period of time as is specified in the Option Agreement, and only to the extent that the Option is vested on the date of termination (but in no event later than the expiration of the term of such Option as set forth in
the Option Agreement). In the absence of a specified time in the Option Agreement, the Option shall remain exercisable for three (3) months following the Optionee’s termination. If, on the date of termination, the Optionee is not vested as to
his or her entire Option, the Shares covered by the unvested portion of the Option shall revert to the Plan. If, after termination, the Optionee does not exercise his or her Option within the time specified by the Administrator, the Option shall
terminate, and the Shares covered by such Option shall revert to the Plan. 
  
 (c)  Disability of
Optionee.    If an Optionee ceases to be a Service Provider as a result of the Optionee’s Disability, the Optionee may exercise his or her Option within such period of time as is specified in the Option Agreement, to the
extent the Option is vested on the date of termination (but in no event later than the expiration of the term of such Option as set forth in the Option Agreement). In the absence of a specified time in the Option Agreement, the Option shall remain
exercisable for twelve (12) months following the Optionee’s termination. If, on the date of termination, the Optionee is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option shall revert to the
Plan. If, after termination, the Optionee does not exercise his or her Option within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 
  
 (d)  Death of Optionee.    If an Optionee dies while a Service Provider, the Option may be
exercised within such period of time as is specified in the Option Agreement (but in no event later than the expiration of the term of such Option as set forth in the Notice of Grant), by the Optionee’s estate or by a person who acquires the
right to exercise the Option by bequest or inheritance, but only to the extent that the Option is vested on the date of death. In the absence of a specified time in the Option Agreement, the Option shall remain exercisable for twelve (12) months
following the Optionee’s termination. If, at the time of death, the Optionee is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option shall immediately revert to the Plan. The Option may be
exercised by the executor or administrator of the Optionee’s estate or, if none, by the person(s) entitled to exercise the Option under the Optionee’s will or the laws of 
 

 7 

 descent or distribution. If the Option is not so exercised within the time specified herein, the Option shall terminate, and the Shares
covered by such Option shall revert to the Plan. 
  
 (e)  Buyout
Provisions.    The Administrator may at any time offer to buy out for a payment in cash or Shares, an Option previously granted based on such terms and conditions as the Administrator shall establish and communicate to the
Optionee at the time that such offer is made. 
  
 11.  Restricted Stock Awards.    Restricted
Stock Awards shall be subject to the terms, conditions, and restrictions determined by the Administrator at the time the restricted stock is awarded. The Administrator may require the recipient to sign a Restricted Stock Award Agreement as a
condition of the award. In addition to paying the consideration determined by the Administrator, the recipient will be responsible for any applicable tax withholding amount, unless otherwise determined by the Administrator. The Restricted Stock
Award Agreement may contain such terms, conditions, representations and warranties as the Administrator may require. The certificates representing the shares of Stock awarded shall bear such legends as shall be determined by the Administrator.

  
 12.  Stock Appreciation Rights. 
  
 (a)  Grant of SARs.    Subject to the terms and conditions of the Plan, SARs may be granted to Service Providers as determined by
the Administrator, in its sole discretion. The Administrator shall have complete discretion to determine the number of SARs granted to any Optionee. 
  
 (b)  Exercise Price and other Terms.    The Administrator, subject to the provisions of the Plan, shall have complete discretion to
determine the terms and conditions of SARs granted under the Plan. However, the exercise price of a SAR shall be not less than one hundred percent (100%) of the Fair Market Value of a Share on the date of grant. 
  
 (c)  SAR Agreement.    Each SAR grant shall be evidenced by an award agreement that shall specify
the exercise price, the term of the SAR, the conditions of exercise, and such other terms and conditions as the Administrator, in its sole discretion, shall determine (the “Award Agreement”). 
  
 (d)  Expiration of SARs.    A SAR granted under the Plan shall expire upon the date determined by
the Administrator, in its sole discretion, and set forth in the Award Agreement. 
  
 (e)  Payment of
SAR Amount.    Upon exercise of a SAR, a Participant shall be entitled to receive payment from the Company in an amount determined by multiplying: 
  
 (i)  The difference between the Fair Market Value of a Share on the date of exercise over the exercise price; times 
  
 (ii)  The number of Shares with respect to which the SAR is exercised. 
 

 8 

  
 (f)  Payment upon Exercise of SAR.    At
the discretion of the Administrator, payment for a SAR may be in cash, Shares or a combination thereof. 
  
 (g)  Cash Settlements and Plan Share Allocation.    Cash payments of Stock Appreciation Rights as well as Common Stock issued upon exercise of Stock Appreciation Rights shall be applied against the
maximum number of shares of Common Stock that may be issued pursuant to the Plan. The number of shares to be applied against such maximum number of shares in such circumstances shall be the number of shares equal to the amount of the cash payment
divided by the Fair Market Value of a share of Common Stock on the date the Stock Appreciation Right is granted. 
  
 13.  Stock Purchase Rights. 
  
 (a)  Rights to
Purchase.    Stock Purchase Rights may be issued either alone, in addition to, or in tandem with other awards granted under the Plan and/or cash awards made outside of the Plan. After the Administrator determines that it will
offer Stock Purchase Rights under the Plan, it shall advise the offeree in writing or electronically of the terms, conditions and restrictions related to the offer, including the number of Shares that such person shall be entitled to purchase, the
price to be paid, and the time within which such person must accept such offer. The Administrator, in its sole discretion, may require that a restricted stock purchase agreement, in the form determined by the Administrator, be executed when the
Stock Purchase Right is exercised. 
  
 (b)  Repurchase
Option.    Unless the Administrator determines otherwise, the restricted stock purchase agreement shall grant the Company a repurchase option exercisable upon the voluntary or involuntary termination of the purchaser’s
service with the Company for any reason (including death or disability). Unless the Administrator determines otherwise, the purchase price for Shares repurchased pursuant to the Restricted Stock purchase agreement shall be the original price paid by
the purchaser and may be paid by cancellation of any indebtedness of the purchaser to the Company. 
  
 (c)  Other Provisions.    The restricted stock purchase agreement shall contain such other terms, provisions and conditions not inconsistent with the Plan as may be determined by the Administrator in its
sole discretion. 
  
 (d)  Rights as a Stockholder.    Once the Stock
Purchase Right is exercised, the purchaser shall have rights equivalent to those of a stockholder and shall be a stockholder when his or her purchase is entered upon the records of the duly authorized transfer agent of the Company. No adjustment
shall be made for a dividend or other right for which the record date is prior to the date the Stock Purchase Right is exercised, except as provided in Section 15 of the Plan. 
  
 14.  Non-Transferability of Options, Rights and Awards.    Unless determined otherwise by the Administrator in its discretion, Options, Stock
Purchase Rights, SARs and Restricted Stock Awards may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime

 

 9 

 of the Optionee, only by the Optionee. If the Administrator makes an Option transferable, such Option shall contain such additional terms and conditions as the
Administrator deems appropriate. 
  
 15.  Adjustments upon Changes in Capitalization, Dissolution, Merger or Asset
Sale. 
  
 (a)  Changes in Capitalization.    Subject to any required
action by the stockholders of the Company, the number of Shares of Common Stock covered by each outstanding Option, Stock Purchase right, SAR or Restricted Stock Award, and the number of Shares of Common Stock which have been authorized for issuance
under the Plan but as to which no Option, Stock Purchase Right, SAR or Restricted Stock Award have yet been granted or which have been returned to the Plan upon cancellation or expiration of an Option, Stock Purchase Right, SAR or Restricted Stock
Award, as well as the price per share of Common Stock covered by each such outstanding Option, Stock Purchase Right or SAR, shall be proportionately adjusted for any increase or decrease in the number of issued Shares of Common Stock resulting from
a stock split, reverse stock split, stock dividend, combination or reclassification of the Common Stock, or any other increase or decrease in the number of issued Shares of Common Stock effected without receipt of consideration by the Company;
provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.” Such adjustment shall be made by the Board, whose determination in that respect
shall be final, binding and conclusive. Except as expressly provided herein, no issuance by the Company of Shares of stock of any class, or securities convertible into Shares of stock of any class, shall affect, and no adjustment by reason thereof
shall be made with respect to, the number or price of Shares of Common Stock subject to an Option, Stock Purchase Right, SAR or Restricted Stock Award. 
  
 (b)  Dissolution or Liquidation.    In the event of the proposed dissolution or liquidation of the Company, the Administrator shall
notify each Optionee as soon as practicable prior to the effective date of such proposed transaction. The Administrator in its discretion may provide for an Optionee to have the right to exercise his or her Option, Stock Purchase Right or SAR until
ten (10) days prior to such transaction as to all of the Optioned Stock covered thereby, including Shares as to which the Option, Stock Purchase Right or SAR would not otherwise be exercisable. In addition, the Administrator may provide that any
Company repurchase option applicable to any Restricted Stock Award or Shares purchased upon exercise of an Option, Stock Purchase Right or SAR shall lapse as to all such Shares, provided the proposed dissolution or liquidation takes place at the
time and in the manner contemplated. To the extent it has not been previously exercised, an Option, Stock Purchase Right or SAR will terminate immediately prior to the consummation of such proposed action. 
  
 (c)  Merger or Asset Sale.    In the event of a merger of the Company with or into another
corporation, or the sale of substantially all of the assets of the Company, each outstanding Option, Stock Purchase Right, SAR and Restricted Stock Award Agreement shall be assumed or an equivalent option, right or agreement substituted by the
successor corporation or a Parent or Subsidiary of the successor corporation. In the event that Restricted Stock Award Agreement is not assumed or substituted, the Company’s right to return of unreleased shares shall terminate as of the date of
the closing of the merger or asset sale. In the event that the successor corporation refuses to 
 

 10 

 assume or substitute for an Option, Stock Purchase Right or SAR, the Optionee shall fully vest in and have the right to exercise the
Option, Stock Purchase Right or SAR as to all of the Optioned Stock, including Shares as to which it would not otherwise be vested or exercisable. If an Option, Stock Purchase Right or SAR becomes fully vested and exercisable in lieu of assumption
or substitution in the event of a merger or sale of assets, the Administrator shall notify the Optionee in writing or electronically that the Option, Stock Purchase Right or SAR shall be fully vested and exercisable for a period of fifteen (15) days
from the date of such notice, and the Option, Stock Purchase Right or SAR shall terminate upon the expiration of such period. For the purposes of this paragraph, the Option, Stock Purchase Right or SAR shall be considered assumed if, following the
merger or sale of assets, the option or right confers the right to purchase or receive, for each Share of Optioned Stock subject to the Option, Stock Purchase Right or SAR immediately prior to the merger or sale of assets, the consideration (whether
stock, cash, or other securities or property) received in the merger or sale of assets by holders of Common Stock for each Share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of
consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the merger or sale of assets is not solely common stock of the successor corporation or its Parent, the
Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of the Option, Stock Purchase Right or SAR, for each Share of Optioned Stock to be solely common stock of the successor
corporation or its Parent equal in fair market value to the per share consideration received by holders of Common Stock in the merger or sale of assets. 
  
 16.  Date of Grant.    The date of grant of an Option, Stock Purchase Right, SAR or Restricted Stock Award shall be, for all purposes, the date on which the Administrator makes the
determination granting such Option, Stock Purchase Right, SAR or Restricted Stock Award, or such other date as is determined by the Administrator. Notice of the determination shall be provided to each Service Provider to whom an Option, Stock
Purchase Right, SAR or Restricted Stock Award is so granted within a reasonable time after the date of such grant. 
  
 17.  Amendment and Termination of the Plan. 
  
 (a)  Amendment and
Termination.    The Board may at any time amend, alter, suspend or terminate the Plan. 
  
 (b)  Effect of Amendment or Termination.    No amendment, alteration, suspension or termination of the Plan shall impair the rights of any Optionee, unless mutually agreed otherwise between the Optionee
and the Administrator, which agreement must be in writing and signed by the Optionee and the Company. Termination of the Plan shall not affect the Administrator’s ability to exercise the powers granted to it hereunder with respect to awards
granted under the Plan prior to the date of such termination. 
  
 18.  Conditions Upon Issuance of Shares.

  
 (a)  Legal Compliance.    Shares shall not be issued pursuant to a
Restricted Stock Award or the exercise of an Option, Stock Purchase Right or SAR unless the exercise of such 
 

 11 

  
 Option, Stock Purchase Right or SAR and the issuance and delivery of such Shares shall comply
with Applicable Laws and shall be further subject to the approval of counsel for the Company with respect to such compliance. 
  
 (b)  Investment Representations.    As a condition to a Restricted Stock Award or the exercise of an Option, Stock Purchase Right or SAR, the Company may require the person
exercising such Option to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the
Company, such a representation is required. 
  
 19.  Inability to Obtain Authority.    The
inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of
any liability in respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained. 
  
 20.  Reservation of Shares.    The Company, during the term of this Plan, will at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements of the
Plan. 
 

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 NEW FOCUS, INC. 
  
 2001
STOCK PLAN 
  
 STOCK OPTION AGREEMENT 
  
 Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Option Agreement. 
  
  
 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: 
  
 
	 Grant Number
 	    	  
	 
	 Date of Grant
 	    	  
	 
	 Vesting Commencement Date
 	    	  
	 
	 Exercise Price per Share
 	    	 $
 
	 
	 Total Number of Shares Granted
 	    	  
	 
	 Total Exercise Price
 	    	 $
 
	 
	 Type of Option:
 	    	  
	 
	 Term/Expiration Date:
 	    	  
	 
	 Vesting Schedule:
 	    	  
	 
	 [100% of the Shares subject to the Option shall be fully vested.]
 
	 
	 Termination Period:
 	    	  

 
  
 This Option is exercisable for a period
of                from the Date of Grant. Upon the death or Disability of the Optionee, this Option may be exercised for such longer period as provided in the Plan. In
no event shall this Option be exercised later than the Term/Expiration Date as provided above. 
 

 13 

  
 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
Agreement (the “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 14(b) 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. 
  
 2.  Exercise of Option. 
  
 (a)  Right to Exercise.    This Option is exercisable during its term in accordance with the
Vesting Schedule set out in the Notice of Grant and 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 the Optionee and delivered to the Company’s stock administrator. 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. 
  
 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 the
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, at the election of the Optionee: 
  
 (i)  cash; 
  
 (ii)  check; 
  
 (iii)  promissory note; 
  
 (iv)  other Shares which (A) in the case of Shares acquired upon exercise of an option, have been owned by the Optionee for
more than six months on the date of surrender, and (B) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which said Option shall be exercised; 
 

 14 

 (v)  consideration received by the Company under a cashless exercise program implemented by the Company in
connection with the Plan; 
  
 (vi)  a reduction in the amount of any Company liability to the Optionee,
including any liability attributable to the Optionee’s participation in any Company-sponsored deferred compensation program or arrangement, or attributable to a settlement of claims against the Company or judgment against the Company;

  
 (vii)  such other consideration and method of payment for the issuance of Shares to the extent
permitted by Applicable Laws; or 
  
 (viii)  any combination of the foregoing methods of payment.

  
 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 the Optionee. The terms of the Plan and this Option Agreement shall be binding upon the executors, administrators, heirs,
successors and assigns of the 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.  Tax Consequences.    Some of the federal tax consequences relating to this Option, as of the date of this Option, are set forth below. THIS
SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. THE OPTIONEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE SHARES. 
  
 (a)  Exercising the Option.    The Optionee may incur regular federal income tax liability upon exercise of an NSO. The Optionee
will be treated as having received 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 their aggregate Exercise Price. If the Optionee
is an Employee or a former Employee, the Company will be required to withhold from his or her 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 the Optionee holds NSO Shares for at least one year, any gain realized on disposition of the
Shares will be treated as long-term capital gain for federal income tax purposes. 
  
 7.  Entire Agreement; Governing
Law.    The Plan is incorporated herein by reference. The Plan and this Option Agreement 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 
 

 15 

 Company and Optionee with respect to the subject matter hereof, and may not be modified adversely to the Optionee’s interest except by means of a writing
signed by the Company and Optionee. This agreement is governed by the internal substantive laws, but not the choice of law rules, of California. 
  
 8.  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 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. 
  
 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.
 
	 
	 
	 	  	 	 

	 Signature      
 	 	  	 	 By
 
	 
	 
	 	  	 	 

	 Print Name
 	 	  	 	 Title
 
	 
	 
	 	  	 	  
	 Residence Address
 	 	  	 	  	 	  
	 
	 
	 	  	 	  	 	  

 
 

 16 

 EXHIBIT A–1 
  
 NEW
FOCUS, INC. 
  
 2001 STOCK PLAN 
  
 EXERCISE NOTICE 
  
 New Focus, Inc. 
 5215 Hellyer Avenue

 San Jose, CA 
  
 Attention:  Gina Ahn, Stock Administrator 
  
 1.  Exercise of Option.    Effective as of
today,            , 200  , the undersigned (“Purchaser”) hereby elects to
purchase                 (            ) shares (the “Shares”) of the Common Stock of New Focus,
Inc. (the “Company”) under and pursuant to the 2001 Stock Plan (the “Plan”) and the Stock Option Agreement dated,                 (the “Option
Agreement”). The purchase price for the Shares shall be $             per share, as required by the Option Agreement. 
  
 2.  Delivery of Payment.    Purchaser herewith delivers to the Company the full purchase price for the Shares. 
  
 3.  Representations of Purchaser.    Purchaser acknowledges that Purchaser has received, read and understood the
Plan and the Option Agreement and agrees to abide by and be bound by their terms and conditions. 
  
 4.  Rights as
Stockholder.    Until the issuance (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company) of the Shares, no right to vote or receive dividends or any other
rights as a stockholder shall exist with respect to the Optioned Stock, notwithstanding the exercise of the Option. The Shares so acquired shall be issued to the Optionee as soon as practicable after exercise of the Option. No adjustment will be
made for a dividend or other right for which the record date is prior to the date of issuance, except as provided in Section 12 of the Plan. 
  
 5.  Tax Consultation.    Purchaser understands that Purchaser may suffer adverse tax consequences as a result of Purchaser’s purchase or disposition of the Shares. Purchaser
represents that Purchaser has consulted with any tax consultants Purchaser deems advisable in connection with the purchase or disposition of the Shares and that Purchaser is not relying on the Company for any tax advice. 
  
 6.  Entire Agreement; Governing Law.    The Plan and Option Agreement are incorporated herein by reference. This
Agreement, the Plan and the Option Agreement constitute the entire 
 

 17 

 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
Purchaser with respect to the subject matter hereof, and may not be modified adversely to the Purchaser’s interest except by means of a writing signed by the Company and Purchaser. This agreement is governed by the internal substantive laws,
but not the choice of law rules, of California. 
  
  
 
	 Submitted by:
 	 	  	 	 Accepted by:
 
	 
	 PURCHASER
 	 	  	 	 NEW FOCUS, INC.
 
	 
	 
	 	  	 	 

	 Signature      
 	 	  	 	 By
 
	 
	 
	 	  	 	 

	 Print Name
 	 	  	 	 Title:
 
	 
	 
	 	  	 	  
	 Date Received
 	 	  	 	  	 	  

 
  
 
	 
	 Address:
 	 	  
 
	 	  	 	 Address:
 	 	 5215 Hellyer Avenue
 

	 
	  	 	 
	 	  	 	  	 	 San Jose, CA 95138
 

	 
	  	 	  
 
	 	  	 	  	 	  
 

 
 

 18 

 EXHIBIT B 
  
 NEW FOCUS,
INC. 
  
 2001 STOCK PLAN 
  
 RESTRICTED STOCK AWARD AGREEMENT 
  
 Unless otherwise defined herein, the terms defined in the 2001 Stock Plan
shall have the same defined meanings in this Restricted Stock Award Agreement (the “Agreement”). 
  
  
 I.    NOTICE OF GRANT OF RESTRICTED STOCK AWARD 
  
 [Executive’s Name and Address]

  
 You have been granted the right to receive Common Stock of the Company, subject to the terms and conditions of the Plan and
this Agreement, as follows: 
  
 
	         Grant Number
 	 	 
	 	  	 	  
	 
	         Date of Grant
 	 	 
	 	  	 	  
	 
	         Total Number of Shares Subject
         to this Restricted Stock Award
 	 	 
	 	  	 	  
	 
	         Purchase Price Per Share
 	 	 
	 	  	 	  

 
  
  
 II.    AGREEMENT 

 
 1.  Stock Award.    The Company hereby awards to [insert name] (“Executive”) [insert
# of shares] shares of the Company’s Common Stock (the “Shares”). 
  
 2.  Forfeiture
Restriction.    In the event that the Executive ceases to be an Employee for any or no reason (including death or disability) before all of the Shares are released from the forfeiture restriction (see Section 3), the
Executive shall, upon the date of such termination (as reasonably fixed and deter­mined by the Company) forfeit that number of shares which constitute the Unreleased Shares (as defined in Section 3). Upon such forfeiture the Company shall become
the legal and beneficial owner of the Shares being forfeited and all rights and interests therein or relating thereto, and the Company shall have the right to retain and trans­fer to its own name the number of Shares being forfeited by the
Executive. 
 

 19 

 3.  Release of Shares from Forfeiture Restriction. 
  
 (a)  [Subject to earlier release from the forfeiture restriction (or “vesting”) as specified in the [employment agreement/offer letter] by
and between Executive and the Company dated [insert date] (the “Employment Agreement”)], [insert vesting schedule]. 
  
 (b)  Any of the Shares which have not yet been released from the forfeiture restriction are referred to herein as “Unreleased Shares.” 
  
 4.  Restriction on Transfer.    Except for the transfer of the Shares to the Company contemplated by the forfeiture provisions of this Agreement,
none of the Shares or any beneficial interest therein shall be transferred, encumbered or otherwise disposed of in any way until the release of such Shares from the forfeiture restriction in accordance with the provi­sions of this Agreement,
other than by will or the laws of descent and distribution. 
  
 5.  Escrow of Shares. 
  
 (a)  To ensure the availability for delivery of the Executive’s Unreleased Shares upon any forfeiture to the Company,
the Executive shall, upon execution of this Agreement, deliver and deposit with an escrow holder designated by the Company (the “Escrow Holder”) the share certificates representing the Unreleased Shares, together with the Assignment
Separate from Certificate (the “Stock Assignment”) duly endorsed in blank, attached hereto as Exhibit A-1. The Unreleased Shares and Stock Assignment shall be held by the Escrow Holder, pursuant to the Joint Escrow Instructions of
the Company and Executive attached as Exhibit A-2 hereto, until such time as the Company’s Repurchase Option expires. 
  
 (b)  The Escrow Holder shall not be liable for any act it may do or omit to do with respect to holding the Unreleased Shares in escrow and while acting in good faith and in the exercise of its judgment.

  
 (c)  If the Company or any assignee is the recipient of any Unreleased Shares hereunder, the Escrow
Holder, upon receipt of written notice of such forfeiture, shall take all steps necessary to accomplish such transfer to the Company. 
  
 (d)  When a portion of the Shares has vested, upon Executive’s request the Escrow Holder shall promptly cause a new certificate to be issued for such released Shares and shall deliver such certificate
to the Executive. 
  
 (e)  Subject to the terms hereof, the Executive shall have all the rights of a
shareholder with respect to such Shares while they are held in escrow, including without limitation, the right to vote the Shares and receive any cash dividends declared thereon. If, from time to time during the term of vesting, there is (i) any
stock dividend, stock split or other change in the Shares, or (ii) any merger or sale of all or substantially all of the assets or other acquisition of the Com­pany, any and all 
 

 20 

 new, substituted or additional securities to which the Executive is entitled by reason of the Executive’s ownership of the Shares
shall be immediately subject to this escrow, deposited with the Escrow Holder and included thereafter as “Shares” for purposes of this Agreement. 
  
 6.  Tax Consequences.    The Executive has reviewed with the Executive’s own tax advisors the federal, state, local and foreign tax consequences of this investment and the
transactions contem­plated by this Agreement. The Executive is relying solely on such advisors and not on any statements or representations of the Company or any of its agents. The Executive understands that the Executive (and not the Company)
shall be responsible for the Executive’s own tax liability that may arise as a result of the transactions contemplated by this Agreement. The Executive understands that Section 83 of the Internal Revenue Code of 1986, as amended (the
“Code”), taxes as ordinary income the difference between the purchase price for the Shares and the Fair Market Value of the Shares as of the date any restrictions on the Shares lapse. In this context, “restriction” includes the
forfeiture restriction. The Executive understands that the Executive may elect to be taxed at the time the Shares are awarded rather than when and as the forfeiture restriction lapses by filing an election under Section 83(b) of the Code with the
IRS within 30 days from the date of the award. 
  
 THE EXECUTIVE ACKNOWLEDGES THAT IT IS THE EXECUTIVE’S SOLE RESPONSIBILITY
AND NOT THE COMPANY’S TO TIMELY FILE THE ELECTION UNDER SECTION 83(b), EVEN IF THE EXECUTIVE REQUESTS THE COMPANY OR ITS REPRESENTATIVES TO MAKE THIS FILING ON THE EXECUTIVE’S BEHALF. 
  

7.  General Provisions. 
  
 (a)  Choice of Law; Entire Agreement.    This Agreement shall be governed by the internal substantive laws, but not the choice of law rules, of Delaware. This Agreement (including the Exhibits to this
Agreement) and the Employment Agreement represent the entire agree­ment between the parties with respect to the award of these Shares to the Executive, and may only be amended in a writing signed by the parties hereto. 
  
 (b)  Successors.    The rights of the Company under this Agreement shall be transferable to any
one or more persons or entities, and all covenants and agreements hereunder shall inure to the benefit of, and be enforceable by, the Company’s successors and assigns. The rights and obligations of the Executive under this Agreement may only be
assigned with the prior written consent of the Company. 
  
 (c)  Waiver.    Either party’s failure to enforce any provision of this Agreement shall not in any way be construed as a waiver of any such provision, nor prevent that party from thereafter
enforcing any other provision of this Agreement. The rights granted both parties hereunder are cumulative and shall not constitute a waiver of either party’s right to assert any other legal remedy available to it. 
 

 21 

 (d)  Severability.    Should any provision of this Agreement be found to be
illegal or unenforceable, the other provisions shall nevertheless remain effective and shall remain enforceable. 
  
 (e)  EXECUTIVE ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO SECTION 3 HEREOF IS EARNED ONLY BY CONTINUING SERVICE AS AN EMPLOYEE AT THE WILL OF THE COMPANY. EXECUTIVE FURTHER ACKNOWLEDGES AND AGREES THAT THIS
AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS AN EMPLOYEE FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT
INTERFERE WITH EXECUTIVE’S RIGHT OR THE COMPANY’S RIGHT TO TERMI­NATE EXECUTIVE’S RELATIONSHIP AS AN EMPLOYEE AT ANY TIME, WITH OR WITHOUT CAUSE. 
  
 By Executive’s signature below, Executive represents that he is familiar with the terms of this Agreement and hereby accepts this Agreement subject to all of the terms and
provisions thereof. Executive has read this Agreement in its entirety, has had an opportunity to obtain the advice of counsel prior to executing this Agreement and fully understands all provi­sions of this Agreement. 
  
 
	 EXECUTIVE
 	 	  	 	 NEW FOCUS, INC.
 
	 
	 
	 	  	 	 

 
 

 22 

 EXHIBIT B-1 
  
 ASSIGNMENT
SEPARATE FROM CERTIFICATE 
  
 FOR VALUE RECEIVED
I,                        , hereby sell, assign and transfer unto New Focus, Inc. (the “Company”)
                        (            ) shares of the Common Stock of
New Focus, Inc. standing in my name of the books of the Company represented by Certificate No.        . I hereby irrevocably appoint to transfer said stock on the books of the Company with full power of
substitution in the premises. 
  
 This Stock Assignment may be used only in accordance with the Restricted Stock Award Agreement
between New Focus, Inc. and the undersigned dated                ,        . 
  

Dated:                         ,

 Signature: 
  
  
  

 
  
  
  
  
  

 
  
  
  
  
  

 
  
  
  
  
  

 
  
  
  
  
  

 
  
  
  
  
 INSTRUCTIONS:  Please do not fill in any blanks other than the signature line. The purpose of this assignment is to enable the Company to receive forfeited shares as set forth in the Agreement,
without requiring additional signatures on the part of the Executive. 
 

 23 

 EXHIBIT B-2 
  
 JOINT
ESCROW INSTRUCTIONS 
  
 ,      
  
  
 [Escrow agent] 
  
 Dear                : 
  
 As Escrow Agent
for both New Focus, Inc., a Delaware corpora­tion (the “Company”), and the undersigned Executive (the “Executive”) of stock of the Company, you are hereby authorized and directed to hold the documents delivered to you
pursuant to the terms of that certain Restricted Stock Award Agreement (“Agreement”) between the Company and the undersigned, in accordance with the following instructions: 
  
 1.  In the event the Company and/or any assignee of the Company (referred to collectively for convenience herein as the “Company”) receives
forfeited shares pursuant to the Agreement, the Company shall give a written notice to Executive and you specifying the number of shares of stock to be forfeited and the time for a closing hereunder at the principal office of the Company. Executive
and the Company hereby irrevocably authorize and direct you to close the transac­tion contemplated by such notice in accordance with the terms of said notice. 
  
 2.  At the closing, you are directed (a) to date the stock assignments necessary for the transfer in question, (b) to fill in the number of shares being
transferred, and (c) to deliver same, together with the certificate evidencing the shares of stock to be transferred, to the Company or its assignee. 
  
 3.  Executive irrevocably authorizes the Company to deposit with you any certificates evidencing shares of stock to be held by you hereunder and any additions
and substitutions to said shares as defined in the Agreement. Executive does hereby irrevocably constitute and appoint you as Executive’s attorney-in-fact and agent for the term of this escrow to execute with respect to such securities all
documents necessary or appropriate to make such securities negotiable and to complete any transaction herein contemplated, including but not limited to the filing with any applicable state blue sky authority of any required applications for consent
to, or notice of transfer of, the securities. Subject to the provisions of this paragraph 3, Executive shall exercise all rights and privileges of a shareholder of the Company while the stock is held by you. 
  
 4.  Upon written request of the Executive, but no more than once per calendar year, unless the Shares have been forfeited to
the Company, you will deliver to Executive a certificate or certificates representing so many shares of stock as are vested. Within ninety (90) days after cessation of Executive’s employment with the Company, you will deliver to Executive a
certificate 
 

 24 

 or certificates representing the aggregate number of shares held or issued pursuant to the Agreement and not forfeited to the Company
or its assignees. 
  
 5.  If at the time of termination of this escrow you have in your possession any
documents, securities, or other prop­erty belonging to Executive, you shall deliver all of the same to Executive and shall be discharged of all further obligations hereunder. 
  
 6.  Your duties hereunder may be altered, amended, modified or revoked only by a writing signed by all of the parties hereto. 
  
 7.  You are obligated only for the performance of such duties specifically set forth herein. You may rely, and shall be
protected in relying or refraining from acting, on any instrument reasonably believed by you to be genuine and to have been signed or presented by the proper party or parties. You will not be person­ally liable for any act you may do or omit to
do hereunder as Escrow Agent or as attorney-in-fact for Executive while acting in good faith and any act done or omitted by you pursuant to the advice of your own attorneys shall be conclusive evidence of good faith. 
  
 8.  You are hereby expressly authorized to disregard any and all warnings given by any of the parties hereto or by any other
person or corporation, excepting only orders or process of courts of law. You are hereby expressly authorized to comply with and obey orders, judgments or decrees of any court. If you obey or comply with any such order, judgment or decree, you shall
not be liable to any of the parties hereto or to any other person, firm or corporation by reason of such compliance, notwithstanding any such order, judgment or decree being subsequently reversed, modified, annulled, set aside, vacated or found to
have been entered without jurisdiction. 
  
 9.  You shall not be liable in any respect on account of
the identity, authorities or rights of the parties executing or deliv­ering or purporting to execute or deliver the Agreement or any documents or papers deposited or called for hereunder. 
  

10.  You shall not be liable for the outlawing of any rights under the Statute of Limitations with respect to these Joint Escrow Instructions or any
documents deposited with you. 
  
 11.  You shall be entitled to employ such legal counsel and other
experts as you may deem necessary to advise you properly in connection with your obligations hereunder, may rely upon the advice of such counsel, and may pay such counsel reasonable compensation therefor. 
  
 12.  Your responsibilities as Escrow Agent hereunder shall terminate if you shall cease to be an officer or agent of the
Company or if you shall resign by written notice to each party. In the event of any such termination, the Company shall appoint a successor Escrow Agent. 
 

 25 

  
 13.  If you reasonably require other instruments in connection with
these Joint Escrow Instructions or obligations in respect hereto, the necessary parties hereto shall furnish such instruments. 
  
 14.  It is understood and agreed that should any dispute arise with respect to the delivery and/or ownership or right of posses­sion of the securities held by you hereunder, you are authorized and
directed to retain in your possession, without liability to anyone, all or any part of said securities until such dispute has been settled either by mutual written agreement of the parties concerned or by a final order, decree or judgment of a court
of competent jurisdiction after the time for appeal has expired and no appeal has been perfected. You are under no duty whatsoever to institute or defend any such proceeding. 
  
 15.  Any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given upon personal delivery or upon deposit in the
United States Post Office, by registered or certified mail with postage and fees prepaid, addressed to each of the relevant parties at the following addresses or at such other addresses as a party may designate by ten (10) days’ advance written
notice to each of the other parties hereto. 
  
 
	  	 	  	 	  	 	 COMPANY:
 
	 
	  	 	  	 	 New Focus, Inc.
 5215
Hellyer Avenue
 San Jose, CA 95138
 Attn: Stock
Administrator
 
	 
	 EXECUTIVE:
 	 	  	 	 

	 
	  	 	  	 	 

	 
	  	 	  	 	 

	 
	  	 	  	 	 ESCROW AGENT:
 

 
  
 16.  By signing these Joint Escrow Instructions, you
become a party hereto only for the purpose of the Joint Escrow Instructions; you do not become a party to the Agreement. 
  
 17.  This instrument shall be binding upon and inure to the benefit of the parties hereto, their respective successors and their permitted assigns. 
 

 26 

  
 18.  The Restricted Stock Award Agreement is incorporated herein by
reference. These Joint Escrow Instructions, the 2001 Stock Plan, and the Restricted Stock Award Agreement (including the exhibits referenced therein) 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 Escrow Agent, the Executive and the Company with respect to the subject matter hereof, and may not be modified except in a writing signed by the Escrow Agent, the Executive
and the Company. 
  
 19.  These Joint Escrow Instructions shall be governed by, and construed and
enforced in accordance with, the laws of the State of Delaware (without regard to the choice of laws provisions therein). 
  
 
	  	 	  	 	 Very truly yours,
 
	 
	  	 	  	 	 NEW FOCUS, INC.
 
	 
	  	 	  	 	  	 	 By:
 	 	 

	 
	  	 	  	 	  	 	 Title:
 	 	 

	 
	  	 	  	 	  	 	 EXECUTIVE:
 
	 
	  	 	  	 	  	 	  
 
            (Signature)
 
	 
	  	 	  	 	  	 	             ESCROW AGENT:
 
	 
	  	 	  	 	  	 	  
 
            Corporate Secretary
 

 
  
  
  
  
 

 27 

 EXHIBIT B-3 
  
 ELECTION
UNDER SECTION 83(b) 
 OF THE INTERNAL REVENUE CODE OF 1986 
  
 The undersigned taxpayer hereby elects, pursuant to the above-referenced Federal Tax Code, to include in taxpayer’s gross income for the current taxable year, the amount of any compensation taxable to taxpayer in
connection with his receipt of the property described below: 
  

	1.
	 
	The name, address, taxpayer identification number and taxable year of the undersigned are as follows: 
 

  

NAME:                                      
  TAXPAYER:                            SPOUSE: 
  

        ADDRESS: 
  
 IDENTIFICATION
NO.:            TAXPAYER:                          
  SPOUSE: 
  
         TAXABLE YEAR: 
  

	2.
	 
	The property with respect to which the election is made is described as follows:              shares (the
“Shares”) of the Common Stock of New Focus, Inc. (the “Company”). 
 

  
 3.  The date on which the property was transferred is:                          ,
            . 
  
 4.  The property is
subject to the following restrictions: 
  
 The Shares may be forfeited to the Company, or its assignee, on certain events. This
right lapses with regard to a portion of the Shares based on the continued performance of services by the taxpayer over time. 
  

	5.
	 
	The fair market value at the time of transfer, determined without regard to any restriction other than a restriction which by its terms will never lapse, of such property is:

 

  
 $                                . 
  

	6.
	 
	The amount (if any) paid for such property is zero dollars. 
 

  
 The undersigned has submitted a copy of this statement to the person for whom the services were performed in connection with the undersigned’s receipt of the above-described property. The transferee of such
property is the person per­forming the services in connection with the transfer of said property. 
  
 The undersigned
understands that the foregoing election may not be revoked except with the consent of the Commissioner. 
  
 
	 
	  	 	 Dated:                                ,
 	 	  	 	  	 	 
, Taxpayer
 

 
  
 The undersigned spouse of taxpayer joins in this election. 

 
 
	 
	  	 	 Dated:                                ,
 	 	  	 	  	 	 

 
 
	  	 	  	 	  	 	 Spouse of Taxpayer
 

 
 

 28

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