Document:

<PAGE>

                                                                   Exhibit 10.10

                               AVANEX CORPORATION

                                 1998 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

      You have been granted an option to purchase Common Stock of the Company,
subject to the terms and conditions of the Plan and this Option Agreement, as
follows:

      Date of Grant

      Vesting Commencement Date

      Exercise Price per Share

      Total Number of Shares Granted

      Total Exercise Price

      Type of Option:                        ____ Incentive Stock Option

                                             ____ Nonstatutory Stock Option

      Term/Expiration Date:

      Vesting Schedule:

      This Option may be exercised, in whole or in part, in accordance with the
following schedule:

      This Option shall vest and become exercisable as to one-hundred percent
(100%) of the Shares subject to the Option on the one year anniversary of the
Vesting Commencement Date, provided that the Optionee continues to be a Service
Provider on such date.
<PAGE>
      Termination Period:

      In the event that Optionee's status as a Service Provider terminates
(other than upon the Optionee's death or Disability), this Option (to the extent
vested) may be exercised until two years after Optionee ceases to be a Service
Provider. Upon the death or Disability of the Optionee, this Option may be
exercised for twelve months after Optionee ceases to be a Service Provider. In
no event shall this Option be exercised later than the Term/Expiration Date as
provided above.

      Acceleration Upon a Change of Control:

      Notwithstanding the foregoing, in the event of a Change of Control, as
defined in the 1999 Director Option Plan, as amended, this Option shall
accelerate and become fully vested and exercisable immediately prior to such
Change of Control with respect to one hundred percent (100%) of the Shares
subject to the Option.

II.   AGREEMENT

      A.    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 15(c) of
the Plan, in the event of a conflict between the terms and conditions of the
Plan and the terms and conditions of this Option Agreement, the terms and
conditions of the Plan shall prevail.

            If designated in the Notice of Grant as an Incentive Stock Option
("ISO"), this Option is intended to qualify as an Incentive Stock Option under
Section 422 of the Code. However, if this Option is intended to be an Incentive
Stock Option, to the extent that it exceeds the $100,000 rule of Code Section
422(d) it shall be treated as a Nonstatutory Stock Option ("NSO").

      B.    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. 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

                                      -2-
<PAGE>
purposes the Exercised Shares shall be considered transferred to the Optionee on
the date the Option is exercised with respect to such Exercised Shares.

      C.    Method of Payment.

            Payment of the aggregate Exercise Price shall be by any of the
following, or a combination thereof, at the election of the Optionee:

            1. cash; or

            2. check; or

            3. consideration received by the Company under a cashless exercise
program implemented by the Company in connection with the Plan; or

            4. surrender of other Shares which (i) in the case of Shares
acquired upon exercise of an option, have been owned by the Optionee for more
than six (6) months on the date of surrender, and (ii) have a Fair Market Value
on the date of surrender equal to the aggregate Exercise Price of the Exercised
Shares.

      D.    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.

      E.    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.

      F.    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.

      G.    Exercising the Option.

            1. Nonstatutory Stock Option. The Optionee may incur regular federal
income tax liability upon exercise of a 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.

                                      -3-
<PAGE>
            2. Incentive Stock Option. If this Option qualifies as an ISO, the
Optionee will have no regular federal income tax liability upon its exercise,
although the excess, if any, of the Fair Market Value of the Exercised Shares on
the date of exercise over their aggregate Exercise Price will be treated as an
adjustment to alternative minimum taxable income for federal tax purposes and
may subject the Optionee to alternative minimum tax in the year of exercise. In
the event that the Optionee ceases to be an Employee but remains a Service
Provider, any Incentive Stock Option of the Optionee that remains unexercised
shall cease to qualify as an Incentive Stock Option and will be treated for tax
purposes as a Nonstatutory Stock Option on the date three (3) months and one (1)
day following such change of status.

            3. Disposition of Shares.

                        (a) NSO. 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.

                        (b) ISO. If the Optionee holds ISO Shares for at least
one year after exercise and two years after the grant date, any gain realized on
disposition of the Shares will be treated as long-term capital gain for federal
income tax purposes. If the Optionee disposes of ISO Shares within one year
after exercise or two years after the grant date, any gain realized on such
disposition will be treated as compensation income (taxable at ordinary income
rates) to the extent of the excess, if any, of the lesser of (A) the difference
between the Fair Market Value of the Shares acquired on the date of exercise and
the aggregate Exercise Price, or (B) the difference between the sale price of
such Shares and the aggregate Exercise Price. Any additional gain will be taxed
as capital gain, short-term or long-term depending on the period that the ISO
Shares were held.

                        (c) Notice of Disqualifying Disposition of ISO Shares.
If the Optionee sells or otherwise disposes of any of the Shares acquired
pursuant to an ISO on or before the later of (i) two years after the grant date,
or (ii) one year after the exercise date, the Optionee shall immediately notify
the Company in writing of such disposition. The Optionee agrees that he or she
may be subject to income tax withholding by the Company on the compensation
income recognized from such early disposition of ISO Shares by payment in cash
or out of the current earnings paid to the Optionee.

      H.    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 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.

      I.    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

                                      -4-
<PAGE>
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:                                  AVANEX CORPORATION

____________________________________       __________________________________
Signature                                  By

____________________________________       __________________________________
Print Name                                 Title

____________________________________
Residence Address

____________________________________

                                      -5-
<PAGE>
                                    EXHIBIT A

                               AVANEX CORPORATION

                                 1998 STOCK PLAN

                                 EXERCISE NOTICE

Avanex Corporation
40919 Encyclopedia Circle
Fremont, CA 94538

Attention:  Secretary

      1. Exercise of Option. Effective as of today, ________________, _____, the
undersigned ("Purchaser") hereby elects to purchase ______________ shares (the
"Shares") of the Common Stock of Avanex Corporation (the "Company") under and
pursuant to the 1998 Stock Plan (the "Plan") and the Stock Option Agreement
dated, _____ (the "Option Agreement"). The purchase price for the Shares shall
be $_____, 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 13 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.
<PAGE>
      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 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:                                   AVANEX CORPORATION

_____________________________________        __________________________________
Signature                                    By

_____________________________________        __________________________________
Print Name

Address:                                     Address:

_____________________________________        AVANEX CORPORATION

_____________________________________        40919 Encyclopedia Circle
                                             Fremont, CA 94538

                                             __________________________________
                                             Date Received

                                      -2-<PAGE>

                                                                   Exhibit 10.24

                                 FIFTH AMENDMENT
                                       TO
          AMENDED AND RESTATED REVOLVING CREDIT AND SECURITY AGREEMENT

         This Fifth Amendment to Amended and Restated Revolving Credit and
Security Agreement (the "Amendment") is entered into as of June 18, 2003
("Amendment"), by and between COMERICA BANK - CALIFORNIA ("Bank"), and AVANEX
CORPORATION ("Borrower").

                                    RECITALS

         Borrower and Bank are parties to that certain Amended and Restated
Revolving Credit and Security Agreement dated as of July 10, 2000, as amended
from time to time including, without limitation, by that certain First Amendment
to Amended and Restated Revolving Credit and Security Agreement dated as of
August 24, 2000 (the "First Amendment"), that certain Second Amendment to
Amended and Restated Revolving Credit and Security Agreement and Agreement
Regarding Term Loan dated as of January 2, 2001, that certain Third Amendment to
Amended and Restated Revolving Credit and Security Agreement dated as of July
19, 2001, and that certain Fourth Amendment to Amended and Restated Revolving
Credit and Security Agreement dated as of September 26, 2002, all as amended
from time to time (collectively, the "Agreement"). The parties desire to amend
the Agreement in accordance with the terms of this Amendment.

         NOW, THEREFORE, the parties agree as follows:

         1.       The defined term "Base Rate" in Section 1. 1 of the Agreement
is hereby amended and replaced in its entirety to read as follows, and all
references in the Agreement to the "Base Rate" shall mean and refer to the
"Prime Rate":

                  ""Prime Rate" means the variable rate of interest, per annum,
         most recently announced by Bank, as its "prime rate," whether or not
         such announced rate is the lowest rate available from Bank, and which
         rate is changed by Bank from time to time."

         2.       The date "September 30, 2003" set forth in the defined term
"Termination Date" in Section 1.1 of the Agreement is hereby replaced and
amended in its entirety to read "December 31, 2003".

         3.       Section 2.4 of the Agreement is hereby amended and replaced in
its entirety to read as follows:

                  "2.4 Interest. Borrower shall pay interest to Bank on the
         outstanding and unpaid principal amount of the Revolving Credit at the
         floating rate per annum equal to one and one-half percent (1.50%) above
         the Prime Rate."

         4.       Section 8.3 of the Agreement is hereby amended and replaced in
its entirety to read as follows:

                  "8.3 Tangible Net Worth. Borrower shall maintain, as of the
         last day of each fiscal quarter, a Tangible Net Worth of not less than
         Seventy Million Dollars ($70,000,000), as determined in accordance with
         GAAP provided, however, that this amount shall be increased quarterly
         by an amount equal to 100% of any net new equity or Subordinated Debt
         raised by Borrower."

         5.       Section 8.4 of the Agreement is hereby amended and replaced in
its entirety to read as follows:

                  "8.4 [Intentionally omitted.]"

         6.       Section 8.5 of the Agreement is hereby amended and replaced in
its entirety to read as follows:

                  "8.5 Minimum Unrestricted Cash Balance. Borrower shall
         maintain a minimum balance of Unrestricted Cash (as defined herein) of
         Fifty Million Dollars ($50,000,000) at all

                                       1
<PAGE>
         times (the "Minimum Cash Balance"), and Fifteen Million Dollars
         ($15,000,000) (the "Restricted Amount") of the Minimum Cash Balance
         shall be maintained in Borrower's account # 48-01-100-0810172 with
         Munder Capital, also known as the Comerica Bank-California
         (Institutional Trust Department) (the "Restricted Account"), which
         Restricted Account shall be subject to a control agreement in
         substantially the form attached to this Agreement as Appendix I (the
         "Control Agreement"). Amounts maintained by the Borrower in its account
         # 48-01-100-0660490 with Munder Capital shall not be subject to the
         Control Agreement. Any amounts maintained in the Restricted Account in
         excess of the Restricted Amount shall not be subject to the Control
         Agreement. Bank shall promptly provide Borrower with a copy of all
         notices delivered by Bank to Munder Capital with respect to the Control
         Agreement provided that any failure to provide such notice shall not
         constitute a failure by Bank to comply with the terms of this Agreement
         or the Loan Documents. In the event that the Revolving Credit
         terminates pursuant to Section 2.8 of the Agreement and Borrower has
         paid all principal, all accrued interest, all Bank Expenses and all
         Obligations owing by Borrower to Bank under the Loan Documents (except
         for Letter of Credit Obligations of Borrower to Bank with respect to
         Letters of Credit for which Borrower has provided cash security to Bank
         in an amount equal to any undrawn amounts under such issued and
         outstanding Letters of Credit including applicable fees and costs), and
         Bank has no further obligation to make any credit extensions to
         Borrower (except pursuant to issued and outstanding Letters of Credit),
         and Borrower provides Bank with cash security maintained with Bank to
         secure all obligations under any issued and outstanding Letters of
         Credit (as required pursuant to Section 2.2.5 of the Agreement) issued
         under the Agreement or the Loan Documents in an amount equal to any
         undrawn amounts under such issued and outstanding Letters of Credit
         including applicable fees and costs, then the Restricted Amount shall
         no longer be subject to the Control Agreement and Bank and Bank's
         Affiliates shall no longer have a security interest in the Restricted
         Account. "Unrestricted Cash" as used herein means cash and cash
         equivalents, plus short-term investments, plus long-term investments
         (including long-term investments at Munder Capital), minus trade
         accounts payable, and minus the current portion of restructuring
         charges."

         7.       Section 14.2 of the Agreement is hereby amended and replaced
in its entirety to read as follows:

                  "14.2 Term. This Agreement shall become effective on the
         Closing Date and, subject to Section 14.2, shall continue in full force
         and effect for a term ending on the Termination Date. Notwithstanding
         the foregoing, this Agreement shall remain in full force and effect
         until terminated by notice, by either party. Notice of such termination
         shall be effectuated by mailing of a registered or certified letter not
         less than thirty (30) days prior to the effective date of such
         termination, addressed to the other party at the address set forth
         herein and the termination shall be effective as of the date so fixed
         in such notice. Notwithstanding the foregoing, should Borrower be in
         default of one or more of the provisions of this Agreement, Bank may
         terminate this Agreement at any time without notice. Notwithstanding
         the foregoing, should either Bank or Borrower become insolvent or
         unable to meet its debts as they mature, or fail, suspend, or go out of
         business, the other party shall have the right to terminate this
         Agreement at any time without notice. On the date of termination all
         Obligations (other than Letter of Credit Obligations of Borrower to
         Bank with respect to Letters of Credit for which Borrower has provided
         cash security to Bank in an amount equal to any undrawn amounts under
         any issued and outstanding Letters of Credit including applicable fees
         and costs) shall become immediately due and payable without notice or
         demand; no notice of termination by Borrower shall be effective until
         Borrower has paid all Obligations (other than Letter of Credit
         Obligations of Borrower to Bank with respect to Letters of Credit for
         which Borrower has provided cash security to Bank in an amount equal to
         any undrawn amounts under any issued and outstanding Letters of Credit
         including applicable fees and costs) to Bank in full. Notwithstanding
         termination, until all Obligations have been fully satisfied, Bank
         shall retain its security interest in all existing Collateral and
         Collateral arising thereafter, and Borrower shall continue to perform
         all of its Obligations. After termination and when Bank has received
         payment in full of Borrower's Obligations to Bank, Bank shall reassign
         to Borrower all Collateral held by Bank, and shall execute a
         termination of all security agreements and security interests given by
         Borrower to Bank, upon the execution and delivery of mutual general
         releases."

                                       2
<PAGE>
         Notwithstanding the foregoing, upon the termination of this Agreement,
         and provided that Borrower provides Bank with cash security maintained
         with the Bank to secure all obligations under any issued and
         outstanding Letters of Credit (as required pursuant to Section 2.2.5 of
         this Agreement) is sued under the Agreement or the Loan Documents in an
         amount equal to any undrawn amounts under such issued and outstanding
         Letters of Credit including applicable fees and costs, then such
         Letters of Credit may remain outstanding and Bank will release its
         security interest in the Collateral granted under this Agreement."

         8.       Exhibit C to the Agreement is hereby amended and replaced in
its entirety with Exhibit C (Compliance Certificate) attached to this Amendment.

         9.       Borrower confirms Bank's existing and continuing first
priority security interest in the Collateral granted pursuant to the Agreement,
together with all proceeds and substitutions thereof, as security for the prompt
performance of all of Borrowers' Obligations under the Loan Documents.

         10.      Unless otherwise defined, all initially capitalized terms in
this Amendment shall be as defined in the Agreement. The Agreement, as amended
hereby, shall be and remain in full force and effect in accordance with its
respective terms and hereby is ratified and confirmed in all respects. Except as
expressly set forth herein, the execution, delivery, and performance of this
Amendment shall not operate as a waiver of, or as an amendment of, any right,
power, or remedy of Bank under the Agreement, as in effect prior to the date
hereof. Borrower ratifies and reaffirms the continuing effectiveness of all
promissory notes, guaranties, security agreements, intellectual property
security agreements, mortgages, deeds of trust, environmental agreements, and
all other instruments, documents and agreements entered into in connection with
the Agreement.

         11.      Borrower represents and warrants that the representations and
warranties contained in the Agreement are true and correct as of the date of
this Amendment, and that no Event of Default has occurred and is continuing.

         12.      This Amendment may be executed in two or more counterparts,
each of which shall be deemed an original, but all of which together shall
constitute one instrument.

         13.      As a condition to the effectiveness of this Amendment, Bank
shall have received, in form and substance satisfactory to Bank, the following:

                           (a)      this Amendment, duly executed by Borrower;

                           (b)      Corporate Resolutions to Borrow;

                           (c)      an executed Control Agreement;

                           (d)      an amount equal to all Bank Expenses
incurred through the date of this Amendment; and

                           (e)      such other documents, and completion of such
other matters, as Bank may reasonably deem necessary or appropriate.

                  [Remainder of page intentionally left blank.]

                                       3
<PAGE>
         IN WITNESS WHEREOF, the undersigned have executed this Amendment as of
the first date above written.

                                              AVANEX CORPORATION

                                              By:
                                                 -------------------------------

                                              Title:
                                                    ----------------------------

                                              COMERICA BANK - CALIFORNIA

                                              By:
                                                 -------------------------------

                                              Title:
                                                    ----------------------------

                                       4
<PAGE>
                                    EXHIBIT C
                             COMPLIANCE CERTIFICATE

TO:             COMERICA BANK-CALIFORNIA

FROM:           AVANEX CORPORATION

         The undersigned authorized officer of AVANEX CORPORATION hereby
certifies that in accordance with the terms and conditions of the Amended and
Restated Revolving Credit and Security Agreement between Borrower and Bank dated
as of July 10, 2000, as amended from time to time (the "Agreement"), (i)
Borrower is in complete compliance for the period ending _______________ with
all required covenants except as noted below and (ii) all representations and
warranties of Borrower stated in the Agreement are true and correct as of the
date hereof. Attached herewith are the required documents supporting the above
certification. The Officer further certifies that these are prepared in
accordance with Generally Accepted Accounting Principles (GAAP) and are
consistently applied from one period to the next except as explained in an
accompanying letter or footnotes.

<TABLE>
<CAPTION>
REPORTING COVENANT                                      REQUIRED                        COMPLIES
------------------                                      --------                        --------
<S>                                                     <C>                             <C>   <C>
Quarterly financial statements (10Q)                    Quarterly within 45 days        Yes   No
Annual (CPA Audited) (10K)                              FYE within 90 days              Yes   No
IP Report                                               Quarterly within 30 days        Yes   No
Total amount of Borrower's cash and investments         Amount:    $                    Yes   No
Total amount of Borrower's cash and investments         Amount:    $                    Yes   No
maintained with Bank
</TABLE>

<TABLE>
<CAPTION>
FINANCIAL COVENANT                                      REQUIRED        ACTUAL          COMPLIES
------------------                                      --------        ------          --------
<S>                                                     <C>             <C>             <C>   <C>
Maintain on a quarterly basis:
   Minimum Tangible Net Worth                           $70,000,000     $               Yes   No
Maintain at all times:
   Minimum Unrestricted Cash (as defined in             $50,000,000     $               Yes   No
   Section 8.5) (the "Minimum Cash Balance")
   Minimum Cash Balance maintained with Bank of         $15,000,000     $               Yes   No
   Bank's Affiliates (including Munder Capital) and
   subject to a control agreement
</TABLE>

COMMENTS REGARDING EXCEPTIONS:  See Attached.

Sincerely,

------------------------------------
SIGNATURE

------------------------------------
TITLE

------------------------------------
DATE

BANK USE ONLY

Received by:
            ------------------------------------
                     AUTHORIZED SIGNER

Date:
     -------------------------------------------

Verified:
         ---------------------------------------
                     AUTHORIZED SIGNER

Date:
     -------------------------------------------

Compliance Status                   Yes     No

 Please indicate compliance status by circling Yes/No under "Complies" column.

                                       5
<PAGE>
                                   APPENDIX I

                       [Form of Munder Control Agreement.]

                                       6
<PAGE>
                         CORPORATE RESOLUTIONS TO BORROW

BORROWER:         AVANEX CORPORATION

         I, the undersigned Secretary or Assistant Secretary of AVANEX
CORPORATION (the "Corporation"), HEREBY CERTIFY that the Corporation is
organized and existing under and by virtue of the laws of Delaware.

         I FURTHER CERTIFY that at a meeting of the Directors of the Corporation
duly called and held, at which a quorum was present and voting, (or by other
duly authorized corporate action in lieu of a meeting), the following
resolutions were adopted.

         BE IT RESOLVED, that ANY ONE (1) of the following named officers,
employees, or agents of this Corporation, whose actual signatures are shown
below:

<TABLE>
<CAPTION>
NAMES                      POSITIONS                    ACTUAL SIGNATURES
-----                      ---------                    -----------------
<S>                        <C>                          <C>
--------------------       ---------------------        ---------------------

--------------------       ---------------------        ---------------------

--------------------       ---------------------        ---------------------

--------------------       ---------------------        ---------------------

--------------------       ---------------------        ---------------------
</TABLE>

acting for an on behalf of this Corporation and as its act and deed be, and they
hereby are, authorized and empowered:

         BORROW MONEY. To borrow from time to time from COMERICA BANK -
CALIFORNIA ("Bank"), on such terms as may be agreed upon between the officers,
employees, or agents of the Corporation and Bank, such sum or sums of money as
in their judgment should be borrowed, without limitation.

         EXECUTE LOAN DOCUMENTS. To execute and deliver to Bank that certain
Fifth Amendment to Amended and Restated Revolving Credit and Security Agreement
dated as of June 18, 2003 (the "Amendment"), and any documents related to the
Amendment or to that certain Amended and Restated Revolving Credit and Security
Agreement dated as of July 10, 2000, as amended (collectively with the
Amendment, the "Loan Documents"), and also to execute and deliver to Bank one or
more amendments, renewals, extensions, modifications, consolidations, or
substitutions for the Loan Documents.

         GRANT SECURITY. To grant a security interest to Bank in the Collateral
described in the Loan Documents, which security interest shall secure all of the
Corporation's Obligations, as described in the Loan Documents.

         LETTERS OF CREDIT. To execute letter of credit applications and other
related documents pertaining to Bank's issuance of letters of credit.

         CREDIT CARD SERVICES. To execute credit card services applications and
other related documents pertaining to Bank's credit card services.

                                       7
<PAGE>
         NEGOTIATE ITEMS. To draw, endorse, and discount with Bank all drafts,
trade acceptances, promissory notes, or other evidences of indebtedness payable
to or belonging to the Corporation or in which the Corporation may have an
interest, and either to receive cash for the same or to cause such proceeds to
be credited to the account of the Corporation with Bank, or to cause such other
disposition of the proceeds derived therefrom as they may deem advisable.

         FURTHER ACTS. In the case of lines of credit, to designate additional
or alternate individuals as being authorized to request advances thereunder, and
in all cases, to do and perform such other acts and things, to pay any and all
fees and costs, and to execute and deliver such other documents and agreements
as they may in their discretion deem reasonably necessary or proper in order to
carry into effect the provisions of these Resolutions.

         BE IT FURTHER RESOLVED, that any and all acts authorized pursuant to
these resolutions and performed prior to the passage of these resolutions are
hereby ratified and approved, that these Resolutions shall remain in full force
and effect and Bank may rely on these Resolutions until written notice of their
revocation shall have been delivered to and received by Bank. Any such notice
shall not affect any of the Corporation's agreements or commitments in effect at
the time notice is given.

         I FURTHER CERTIFY that the officers, employees, and agents named above
are duly elected, appointed, or employed by or for the Corporation, as the case
may be, and occupy the positions set forth opposite their respective names; that
the foregoing Resolutions now stand of record on the books of the Corporation;
and that the Resolutions are in full force and effect and have not been modified
or revoked in any manner whatsoever.

         I FURTHER CERTIFY that a true and correct copy of the Certificate of
Incorporation of the Corporation, as amended, has been delivered to Bank, as in
full force and effect on the date hereof.

         IN WITNESS WHEREOF, I have hereunto set my hand on June 18, 2003, and
attest that the signatures set opposite the names listed above are their genuine
signatures.

                                              CERTIFIED TO AND ATTESTED BY:

                                              X
                                               ---------------------------------

                                       8

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