Document:

exv10w2

Exhibit 10.2

CONSENT LETTER

June 3, 2011

Gibraltar Industries, Inc.

3556 Lake Shore Road

Buffalo, New York 14219

Attention: Kenneth W. Smith

                 Senior Vice President and

                 Chief Financial Officer

Re: KeyBank’s Agented Credit Facility for Gibraltar Industries, Inc., et al.

Ladies and Gentlemen:

     Reference is made to that certain Third Amended and Restated Credit Agreement, dated as of
July 24, 2009, among Gibraltar Industries, Inc., a Delaware corporation (“Gibraltar”), Gibraltar
Steel Corporation of New York, a New York corporation (“GSNY” and, together with Gibraltar,
collectively, “Borrowers” and, individually, each a “Borrower”), the lenders from time to time
listed on Schedule 1 thereto (together with their respective successors and assigns,
collectively, the “Lenders” and, individually, each a “Lender”), KeyBank National Association as
the lead arranger, sole book runner and administrative agent for the Lenders (“Agent”), JPMorgan
Chase Bank, N.A. and BMO Harris Financing, Inc., formerly known as BMO Capital Markets Financing,
Inc., as co-syndication agents, and HSBC Bank USA, National Association and Manufacturers and
Traders Trust Company, as co-documentation agents (as amended, the “Credit Agreement”).
Capitalized terms used in this consent letter (this “Consent Letter”) and not otherwise defined
herein shall be defined as set forth in the Credit Agreement.

     Borrowers have notified Agent and the Lenders that, on or about June 3, 2011, Southeastern
Metals Manufacturing Company, Inc., a Florida corporation, a Guarantor of Payment, plans to acquire
all of the outstanding capital stock of Pacific Award Metals, Inc., a California corporation (the
“Target”), for an aggregate amount of cash Consideration of approximately Sixteen Million Dollars
($16,000,000) (the “Acquisition”).

     Borrowers have also notified Agent and the Lenders that the Target EBITDA of the Target
(excluding proposed synergies and other post acquisition actions or enhancements) for the most
recently completed twelve (12) consecutive calendar months is negative.

     Section 5.13(g)(iii) of the Credit Agreement prohibits Borrowers from effecting any
acquisition if the target entity has not generated positive Target EBITDA (excluding proposed
synergies and other post acquisition actions or enhancements) for the most recently completed
twelve (12) consecutive months prior to such Acquisition. Borrowers have requested that Agent and
the Lenders consent to the Acquisition, notwithstanding the restriction in Section 5.13(g)(iii) of
the Credit Agreement.

 

 

     Agent and the Lenders hereby consent to the foregoing on the following conditions:

     (a) without giving effect to the terms of this Consent Letter, Borrowers shall be in
compliance with Section 5.13 of the Credit Agreement (other than Section 5.13(g)(iii) of the Credit
Agreement), both before and after the Acquisition;

     (b) after giving effect to the terms of this Consent Letter, no Default or Event of Default
shall exist under the Credit Agreement or any other Loan Document;

     (c) the aggregate amount of Consideration paid by the Companies for the Acquisition shall not
exceed Twenty Million Dollars ($20,000,000); and

     (d) Borrowers shall pay all legal fees and expenses of Agent in connection with this Consent
Letter.

     Except as otherwise expressly specified in this Consent Letter, the Credit Agreement shall
remain in full force and effect and shall be unaffected hereby. This Consent Letter (a) is a Loan
Document pursuant to the Credit Agreement, (b) is not intended to, nor shall it, establish any
course of dealing among Borrowers, Agent and the Lenders that is inconsistent with the express
terms of the Credit Agreement, and (c) shall not operate as a waiver or amendment of any other
right, power or remedy of Agent and the Lenders under the Credit Agreement or constitute a
continuing consent of any kind. The consent requested by Borrowers and granted by Agent and the
Required Lenders hereunder relates solely to the items set forth in this Consent Letter. No
further consent has been requested or granted. This Consent Letter shall be governed by, and
construed in accordance with, the internal laws of the State of New York.

[Remainder of page intentionally left blank.]

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     This Consent Letter shall not be effective until (a) it has been executed by the Required
Lenders, and (b) each Borrower and Guarantor of Payment have executed the attached Acknowledgment
and Acceptance. This Consent Letter may be executed in any number of counterparts, by different
parties hereto in separate counterparts and by facsimile or electronic signature, each of which
when so executed and delivered shall be deemed to be an original and all of which when taken
together shall constitute but one and the same agreement.

	 	 	 	 	 
	 	Very truly yours,

KEYBANK NATIONAL ASSOCIATION

as Agent and as a Lender

 	 
	 	By:  	/s/ Timothy W. Kenealy 	 
	 	 	Name:  	Timothy W. Kenealy	 
	 	 	Title:  	Vice President	 
	 
	 	HSBC BANK USA, NATIONAL
ASSOCIATION

as a Co-Documentation Agent and as a Lender

 	 
	 	By:  	/s/ Frank M. Eassa	 
	 	 	Name:  	Frank M. Eassa	 
	 	 	Title:  	Assistant Vice President 	 
	 
	 	MANUFACTURERS AND TRADERS TRUST COMPANY

as a Co-Documentation Agent and as a Lender

 	 
	 	By:  	/s/ Jonathan Z. Falk	 
	 	 	Name:  	Jonathan Z. Falk	 
	 	 	Title:  	Vice President	 
	 
	 	JPMORGAN CHASE BANK, N.A.

as a Co-Syndication Agent and as a Lender

 	 
	 	By:  	/s/ Marie C. Duhamel	 
	 	 	Name:  	Marie C. Duhamel	 
	 	 	Title:  	Vice President 	 
	 
	 	BMO HARRIS FINANCING, INC.

as a Co-Syndication Agent and as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page 1 of 3 to Consent Letter

 

 

	 	 	 	 	 
	 	HARRIS N.A.

as a Fronting Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BANK OF AMERICA, N.A.

 	 
	 	By:  	/s/ Mary Louise Grzeskowiak	 
	 	 	Name:  	Mary Louise Grzeskowiak	 
	 	 	Title:  	Vice President 	 
	 
	 	PNC BANK, NATIONAL ASSOCIATION

as successor to National City Bank

 	 
	 	By:  	/s/ William A. Feldmann	 
	 	 	Name:  	William
A. Feldmann	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	US BANK, NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ Kenneth R. Fieler	 
	 	 	Name:  	Kenneth
R. Fieler	 
	 	 	Title:  	Assistant Vice President

U.S. Bank, N.A.	 
	 
	 	RBS CITIZENS, NATIONAL
ASSOCIATION

 	 
	 	By:  	/s/ Michael Kenneth	 
	 	 	Name:  	Michael Kenneth 	 
	 	 	Title:  	Vice President	 
	 
	 	FIRST NIAGARA BANK, N.A.

 	 
	 	By:  	/s/ John C. Wright 	 
	 	 	Name:  	John C. Wright	 
	 	 	Title:  	Vice President 	 
	 
	 	COMERICA BANK

 	 
	 	By:  	/s/ Blake Arnett 	 
	 	 	Name:  	Blake Arnett	 
	 	 	Title:  	Vice President 	 
	 

Signature Page 2 of 3 to
Consent Letter

 

 

	 	 	 	 	 
	 	PNC BANK, NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ William A. Feldmann	 
	 	 	Name:  	William A. Feldmann	 
	 	 	Title:  	Senior Vice President 	 
	 

Signature Page 3 of 3 to
Consent Letter

 

 

ACKNOWLEDGMENT AND ACCEPTANCE

     Each of the undersigned hereby acknowledges and accepts the terms of the foregoing Consent
Letter dated as of June ___, 2011. Each of the undersigned further certifies that the following
statements are true as of the date hereof: (a) the representations and warranties contained in each
of the Loan Documents are correct in all material respects as though made on and as of the date
hereof, except to the extent that any thereof expressly relate to an earlier date; (b) after giving
effect to the terms of the Consent Letter, no event has occurred and is continuing that constitutes
a Default or Event of Default; and (c) the undersigned does not have any claim or offset against,
or defense or counterclaim to, any obligation or liability of any of the undersigned under the
Credit Agreement or any other Loan Document.

     This Acknowledgment and Acceptance is executed by the undersigned as of the date first written
above.

	 	 	 	 	 
	 	GIBRALTAR INDUSTRIES, INC.

GIBRALTAR STEEL CORPORATION OF NEW YORK

AIR VENT INC.

ALABAMA METAL INDUSTRIES

CORPORATION

AMICO HOLDING COMPANY, INC.

APPLETON SUPPLY CO., INC.

CONSTRUCTION METALS, LLC

DIAMOND PERFORATED METALS, INC.

THE D.S. BROWN COMPANY

D.S.B. HOLDING CORP.

FLORENCE CORPORATION

FLORENCE CORPORATION OF KANSAS

GIBRALTAR STRIP STEEL, INC.

NOLL/NORWESCO, LLC

SEA SAFE, INC.

SOLAR GROUP, INC.

SOLAR OF MICHIGAN, INC.

SOUTHEASTERN METALS

MANUFACTURING COMPANY, INC.

 	 
	 	By:  	/s/ Kenneth W. Smith 	 
	 	 	Kenneth W. Smith 	 
	 	 	Chief Financial Officer 	 
	 

Signature Page to
Acknowledgment and Acceptanceexv10w1

Exhibit 10.1

CIENA CORPORATION

U.S. EXECUTIVE SEVERANCE BENEFIT PLAN

(Effective June 8, 2011)

Article 1

The Plan

     1.1 Name/Date. Ciena Corporation, together with its subsidiaries Ciena Communications,
Inc. and Ciena Government Solutions, Inc. (collectively, the “Company”) has adopted the
Ciena Corporation U.S. Executive Severance Benefit Plan (the “Plan”), effective as of June
8, 2011.

     1.2 Purpose. The Company sponsors the Plan in order to provide each Participant
(defined below) with severance benefits following the Participant’s Involuntary Separation from
Service (defined below) without Cause (defined below) and execution of the release described
herein.

     1.3 Separation Pay Plan Exemption. The Company intends that this Plan qualify as a
separation pay plan that, to the extent benefits are within applicable limits, is exempt from the
rules of Section 409A of the Code (defined below). The Plan shall be interpreted and applied
consistent with that intent.

Article 2

Definitions

     Whenever used in this Plan, the following words and phrases shall have the meanings set forth
below unless the context plainly requires a different meaning. Except as noted below, when the
defined meaning is intended, the term is capitalized:

     2.1 “Affiliate” means an entity that is considered a single employer with the Company
under Section 414(b) or (c) of the Code (but using an “at least 50 percent” rather than an “at
least 80 percent” control level under such sections), whether as parent-subsidiary corporations,
brother-sister corporations or other relationships described in such Code sections.

     2.2 “Base Salary” means the total annual base salary payable to the Participant at the
rate in effect on the date of the Participant’s Separation from Service. Base Salary shall not be
reduced for any salary reduction contributions (i) to deferred arrangements under Section 401(k) of
the Code, (ii) to a cafeteria plan under Section 125 of the Code, or (iii) to a nonqualified
deferred compensation plan. Base Salary shall not take into account any bonuses, reimbursed
expenses, credits or benefits (including benefits under any plan of deferred compensation), or any
additional cash compensation or compensation payable in a form other than cash.

     2.3 “Cause” means the occurrence of any one or more of the following:

     2.3.1 the Participant’s willful and continued failure substantially to perform the
duties of the Participant’s position other than as a result of Disability (provided that, if
the Participant is the chief executive officer or a senior vice president of the Company,
the Governance and Nominations Committee of the Company’s Board of Directors (or any other
subcommittee or special committee appointed by the Board for such purpose (the “Governance
Committee”) shall have provided written notice to the Participant specifying such failure,
and such “cause” shall have been found by a majority vote of the Governance Committee after
at least seven days’ written notice to the Participant specifying the failure on the part of
the Participant and after an opportunity for the Participant to be heard at a meeting of the
Governance Committee);

 

 

     2.3.2 any willful act or omission by the Participant in connection with his or her
responsibilities as an employee of the Company constituting dishonesty, fraud or other
malfeasance, immoral conduct or gross misconduct;

     2.3.3 any willful material violation by the Participant of the Company’s Code of
Business Conduct and Ethics or the Proprietary Information, Inventions and Non-Solicitation
Agreement between the Company and the Participant; or

     2.3.4 the Participant’s conviction of, or plea of nolo contendere to, a felony or a
crime of moral turpitude under the laws of the United States or any state thereof or any
other jurisdiction in which the Company conducts business.

For purposes of this definition, no act or failure to act by the Participant shall be deemed
“willful” unless effected by the Participant not in good faith and without a reasonable belief that
such act or failure to act was in or not opposed to the Company’s best interests.

     2.4 “Code” means the Internal Revenue Code of 1986, as amended. References to a Code
section shall be deemed to be to that section as it now exists and to any successor provision.

     2.5 “Coverage Period” means the earlier of (i) (a) if the Participant is the chief
executive officer of the Company, 18 months following the Participant’s termination of employment
with the Company, (b) if the Participant is a senior vice president of the Company, 12 months
following the Participant’s termination of employment with the Company, and (c) if the Participant
is a vice president of the Company (with the salary grade as set forth in Exhibit A), the number of
weeks that is calculated for purposes of determining the amount of the cash severance payment to
the Participant pursuant to Exhibit A, or (ii) the last day of the month in which the Participant
commences employment with another employer following the Participant’s termination of employment
with the Company.

     2.6 “Disability” means either (i) “total disability” as defined for purposes of the
Company’s long-term disability benefit plan; or (ii) the Participant’s inability, as a result of
physical or mental incapacity, to perform his or her duties for a period of six consecutive months
or for an aggregate of six months in any twelve consecutive month period.

     2.7 “Involuntary Separation from Service” means a Separation from Service due to the
independent exercise of the unilateral authority of the Company to terminate the services of the
Participant, other than due to the Participant’s implicit or explicit request, where the
Participant was willing and able to continue performing services for the Company (as further
described in Treasury Regulations Section 1.409A-1(n)(1)).

     2.8 “Participant” means an employee who is a vice president, senior vice president or
chief executive officer of the Company, each with the salary grade as set forth in Exhibit A.

     2.9 “Separation from Service” (or any similar phrase, such as “separate from service”)
means the Participant’s termination of employment for any reason whatsoever, determined as follows:

     2.9.1 Generally. A Participant terminates employment when the facts and
circumstances indicate that the Company and the Participant reasonably anticipate that the
Participant will perform no further services for the Company or an Affiliate, or that the
level of services the Participant will perform for the Company and Affiliates will
permanently decrease to no more than 20% of the average level of services the Participant
performed over the immediately

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preceding
36-month period (or the full period of services if the Participant has been providing
services to the Company and Affiliates less than 36 months) (the “36-month average”).

     2.9.2 Presumptions. Barring contrary facts and circumstances, the Company shall
presume (i) that a decrease in services to 20% or less of the 36-month average constitutes
termination of employment, and (ii) that continued services at 50% or more of the 36-month
average does not constitute termination of employment.

     2.9.3 Employee vs. Independent Contractor. For purposes of the foregoing,
services include those performed as employee or as independent contractor.

     2.9.4 Asset Sale. If all or a portion of the Company’s assets are sold in a
qualifying transaction under the terms of Treasury Regulations Section 1.409A-1(h)(4), the
Company and the purchasing company may jointly specify whether Participants who continue
employment with the purchasing company have terminated employment.

     2.9.5 Leave of Absence. If the Participant takes a bona fide leave of absence
(as defined in Treasury Regulation Section 1.409A-1(h)(1)), the Company shall not treat the
Participant as having terminated employment.

     2.10 “Target Incentive” means, with respect to a Participant, the Participant’s annual
bonus or commission amount(s) under any incentive plan(s) or program(s) in which the Participant
participated immediately prior to the date of the Participant’s termination of employment with the
Company. The above bonus or commission amount shall be based on an assumed achievement of 100% of
the targeted performance goal(s) for such award.

     2.11 “Total Target Cash” means Base Salary plus Target Incentive.

Article 3

Participation

     Each Participant shall be eligible to participate in this Plan as of the Effective Date of
this Plan. Unless otherwise determined by the Company, participation shall continue until
Separation from Service under circumstances that do not entitle the Participant to benefits under
the Plan, or the end of Coverage Period. To participate in and receive benefits under this Plan,
each Participant agrees to observe all rules and regulations established by the Company for
administering the Plan and shall abide by all decisions of the Company in the construction and
administration of the Plan.

Article 4

Entitlement to Benefits

     If (a) the Participant is separated from service under an Involuntary Separation from Service
without Cause at any time, and (b) the Participant releases all legal claims against the Company by
signing, within 45 days following such separation, the release (or a separation agreement
incorporating the release) set out in substantially the form of Exhibit B, the Company shall
provide to the Participant the severance benefits described in Article 5. In no event shall
severance benefits be payable under this Plan: (i) for the Participant’s Separation from Service
under any other circumstances (e.g., death, Disability or Cause); (ii) if the Participant does not
release the Company from all legal claims; or (iii) if the Participant purports to rescind the
release in whole or in part. Notwithstanding the provisions of Article 5 below, the Company shall
postpone payment of benefits otherwise payable under this Plan until after the last day on which
the Participant could revoke or rescind any part of the release. In such case, the

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postponed
benefits shall be paid
in a single lump sum within ten days upon the expiration of any revocation period. For
purposes of Section 409A of the Code, a Participant’s right to receive installment payments
pursuant to this Plan including, without limitation, each severance payment and COBRA continuation
reimbursement, shall be treated as a right to receive a series of separate and distinct payments.

Article 5

Severance Benefits

     5.1 Amount of Benefits. Except as otherwise noted in this Article 5, the Company shall
provide the following severance benefits to a Participant who becomes entitled to the same under
Article 4:

     5.1.1 Cash Severance. Payment of cash severance in accordance with Exhibit A.
Unless otherwise determined by and in the sole discretion of the General Counsel and the
Chief Human Resources Officer of the Company, this payment shall be paid in a single lump
sum;

     5.1.2 Benefits. Continuation of the Participant’s (and, where applicable, the
Participant’s spouse and eligible dependents’) participation in the group medical, dental
and vision plans maintained by the Company, on substantially the same basis as if the
Participant were an employee of the Company, for the Coverage Period. In the event that the
Company is unable for any reason to provide for the Participant’s (and, where applicable,
the Participant’s spouse and eligible dependents) continued participation in one or more of
such plans during the Coverage Period, the Company shall pay or provide at its expense
equivalent benefit coverage for the remainder of the Coverage Period. The Coverage Period
shall be taken into account as a period of continuation coverage for purposes of Part 6 of
Title I of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”), and for purposes of any other obligation of the Company to provide any
continued coverage to the Participant (and, where applicable, members of the Participant’s
family) under any group medical, dental or vision plan; and

     5.1.3 Outplacement Assistance. Provision of outplacement assistance in
accordance with Exhibit A. If the Company modifies such benefits for employed individuals
during the Participant’s severance benefit period, then such benefits shall also be modified
for purposes of this Plan.

     5.2 Mitigation. Participants shall not be obligated to seek other employment in
mitigation of the amounts payable or arrangements made under any provision of this Plan, and the
obtaining of any such other employment shall in no event effect any reduction of the Company’s
obligations to make the payments and provide the benefits required under this Agreement, except as
provided in Section 5.1.2

     5.3 Exclusivity of Severance Benefits. The severance benefits provided by the Company
pursuant to this Article 5 shall be deemed to be inclusive of any notice, payments or benefits to
which the Participant may be entitled under the federal Worker Adjustment and Retraining
Notification (WARN) Act or other applicable plant or facility closing or mass layoff law, or any
other statutory or regulatory requirement to provide notice of employment termination or
entitlement to severance payments.

     5.4 No Death Benefits. If the Participant dies during the severance benefit period,
the benefits under this Plan shall cease.

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Article 6

Effect on Equity Compensation

          All equity compensation grants made to a Participant by the Company that are outstanding at
the Separation from Service shall be governed by the terms of the award agreement and the equity
compensation plan pursuant to which such equity compensation grant was made.

Article 7

Non-Competition and Non-Solicitation / Clawback

     7.1 Non-Competition and Non-Solicitation. The parties agree that, as a condition to
the Participant’s right to receive the severance benefits set forth in Article 5, the Participant
agrees that, for a period of 12 months following the Participant’s last day of employment with the
Company, the Participant will not, whether alone or as a partner, officer, director, consultant,
agent, employee or stockholder of any company or other commercial enterprise, directly or
indirectly, without the prior written consent of the Company:

     7.1.1 be employed or engaged by or associated with, or engage or invest in, own,
manage, operate, finance, control or participate in the ownership, management, operation,
financing or control of, any business or other commercial activity whose products compete,
in whole or in part, with the products of the Company; provided, that the Participant may
purchase or otherwise acquire as a passive investment up to (but not more than) one percent
of any class of security of any enterprise (but without otherwise participating in the
activities of such enterprise) if such securities are listed on any national or regional
securities exchange or have been registered under Section 12(g) of the Securities Exchange
Act of 1934; or

     7.1.2 (i) solicit or induce any employee of the Company to leave the employ of the
Company, (ii) solicit business of the same or similar type being carried on by the Company
from any person known by to the Participant to have purchased products or services from the
Company within the 12 months prior to the Participant’s last day of employment with the
Company, (iii) unlawfully interfere with the Company’s relationship with any person,
including any person who was an employee, contractor, supplier or customer of the Company,
or (iv) disparage the Company or any of its shareholders, directors, officers, employees or
agents.

     7.2 Construction. Section 7.1 is intended to provide the greatest restriction
allowable under Cal. Bus. & Prof. Code §16601. In the event any provision hereof is determined by a
court of competent jurisdiction to violate any provision of Cal. Bus. & Prof. Code §16601, that
provision shall be modified to the least extent necessary to render it enforceable and the
remainder of the Agreement shall remain in full force and effect.

     7.3 Confidentiality. As a further condition to the receipt and retention of the
severance benefits set forth in Article 5, a Participant shall comply with certain continuing
obligations set forth in the Proprietary Information, Inventions and Non-Solicitation Agreement
between the Participant and the Company (the “PIA”). Specifically, a Participant shall hold
in a fiduciary capacity for the benefit of the Company all Company Confidential Information (as
defined in the PIA), which shall have been obtained by the Participant during the Participant’s
employment by the Company or any of its Affiliates and which shall not be or become public
knowledge (other than by acts by the Participant or representatives of the Participant in violation
of this Agreement). After the Participant’s Separation from Service, the Participant shall not,
without the prior written consent of the Company or as may otherwise be required by law or legal
process, communicate or divulge any such Company Confidential Information to anyone

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other than the
Company and those designated by it. Notwithstanding the foregoing, nothing in this Agreement shall
limit the scope of any other agreement(s) between a Participant and the Company or an Affiliate
that imposes obligations on the Participant regarding secret or confidential information, knowledge
or data covered by this Section.

     7.4 Cooperation. As a further condition to the receipt and retention of the severance
benefits set forth in Article 5, a Participant shall, during the period commencing with the
Separation from Service and ending 24 months thereafter, fully cooperate with the Company or its
counsel in connection with any matter, investigation, proceeding or litigation regarding any matter
in which the Participant was involved during the Participant’s employment with the Company or to
which the Participant has knowledge based on the Participant’s employment with the Company. The
Company shall reimburse a Participant’s out-of-pocket expenses incurred in complying with this
cooperation requirement, provided that such expenses are approved by the Company in advance.

     7.5 Forfeiture. If a Participant fails to comply with the conditions of this Article 7
on one or more occasions, the Participant shall be required to repay the full amount of the
severance paid to the Participant pursuant to Article 5. The forfeiture provisions of this Section
7.5 shall be in addition to, and not in limitation of, any other remedies available to the Company
at law or in equity. In addition, the full amount of the severance paid to the Participant pursuant
to Article 5 is subject to mandatory repayment by the Participant to the Company to the extent the
Participant is or in the future becomes subject to any Company “clawback” or recoupment policy that
requires the repayment by the Participant to the Company of compensation paid by the Company to the
Participant in the event that the Participant fails to comply with, or violates, the terms or
requirements of such policy.

Article 8

Parachute Limitations

     8.1 General. In the event it shall be determined that any payment or distribution by
the Company to or for the benefit of a Participant (whether paid or payable or distributed or
distributable pursuant to the terms of this Plan or otherwise) (“Payment” or
“Payments”) (i) constitutes a “parachute payment” within the meaning of Section 280G of the
Code and (ii) but for this Article 8, would be subject to the excise tax imposed by Section 4999 of
the Code, or any interest or penalties with respect to such excise tax (such excise tax, together
with any such interest or penalties, are hereinafter collectively referred to as the “Excise
Tax”), then the Payments shall be either:

	 	(i)	 	paid or distributed in full, or
	 
	 	(ii)	 	paid or distributed as to such lesser extent which would result in no portion
of such Payments being subject to the Excise Tax,

whichever of the foregoing amounts, taking into account the applicable federal, state and local
income taxes and the Excise Tax, results in the receipt by the Participant (on an after-tax basis)
of the greatest amount of Payments, notwithstanding that all or some portion of such Payments may
be taxable under Section 4999 of the Code.

     8.2 Determinations. Unless the Company and the Participant otherwise agree in writing,
all determinations required to be made under this Section 8.2 shall be made in writing by the
independent public accountants appointed for this purpose by the Company (the
“Accountants”) immediately prior to the change in control, whose determination shall be
conclusive and binding upon the Company and the Participant for all purposes. For purposes of
making the calculation required by this Article 8, the

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Accountants may make reasonable assumptions and approximations concerning applicable taxes and
may rely on reasonable, good faith interpretations concerning the application of Sections 280G and
4999 of the Code. The Company and the Participant shall furnish to the Accountants such information
and documents as the Accountants may reasonably request in order to make a determination under this
Article 8. The Company shall bear all costs the Accountants may reasonably incur in connection with
any calculations contemplated by this Article 8.

Article 9

Employment Status

     9.1 Right to Separate from Service. This Plan shall not be deemed to be an employment
contract between the Company and any Participant. Nothing contained herein (including but not
limited to using the term “Cause” to determine benefits under this Plan) shall give any Participant
the right to be retained in the employ of the Company or to interfere with the right of the Company
to discharge any Participant at any time, nor shall it give the Company the right to require any
Participant to remain in its employ or to interfere with the Participant’s right to separate from
service at any time.

     9.2 Status During Benefit Period. Commencing upon the Participant’s Separation from
Service, the Participant shall cease to be an employee of the Company for any purpose. The payment
of severance benefits under this Plan shall be payments to a former employee.

Article 10

Claims and Review Procedures

     10.1 Claims Procedure. Any individual (“claimant”) who has not received
benefits under the Plan that he or she believes should be paid shall make a claim for such
benefits. With respect to benefits payable to or with respect to the Participant under an insurance
policy, the insurer will adjudicate such claims pursuant to the terms of the policy, the ERISA
claims procedure and applicable state law. With respect to other claims under this Plan, the
Company will adjudicate such claims as follows:

     10.1.1 Initiation — Written Claim. The claimant initiates a claim by
submitting to the Company a written claim for the benefits.

     10.1.2 Timing of Company Response. The Company shall respond to such claimant
within 90 days after receiving the claim. If the Company determines that special
circumstances require additional time for processing the claim, the Company can extend the
response period by an additional 90 days by notifying the claimant in writing, prior to the
end of the initial 90-day period, that an additional period is required. The notice of
extension must set forth the special circumstances and the date by which the Company expects
to render its decision.

     10.1.3 Notice of Decision. If the Company denies part of the claim or the
entire claim, the Company shall notify the claimant in writing of such denial. The Company
shall write the notification in a manner calculated to be understood by the claimant. The
notification shall set forth:

     10.1.3.1 The specific reasons for the denial,

     10.1.3.2 A reference to the specific provisions of the Plan on which the denial
is based,

7

 

     10.1.3.3 A description of any additional information or material necessary for
the claimant to perfect the claim and an explanation of why it is needed,

     10.1.3.4 An explanation of the Plan’s review procedures and the time limits
applicable to such procedures, and

     10.1.3.5 A statement of the claimant’s right to bring a civil action under
ERISA Section 502(a) following an adverse benefit determination on review.

     10.2 Review Procedure. If the Company denies part of the claim or the entire claim,
the claimant shall have the opportunity for a full and fair review by the Company of the denial, as
follows:

     10.2.1 Initiation — Written Request. To initiate the review, the claimant,
within 60 days after receiving the Company’s notice of denial, must file with the Company a
written request for review.

     10.2.2 Additional Submissions — Information Access. The claimant shall then
have the opportunity to submit written comments, documents, records and other information
relating to the claim. The Company shall also provide the claimant, upon request and free of
charge, reasonable access to, and copies of, all documents, records and other information
relevant (as defined in applicable ERISA regulations) to the claimant’s claim for benefits.

     10.2.3 Considerations on Review. In considering the review, the Company shall
take into account all materials and information the claimant submits relating to the claim,
without regard to whether such information was submitted or considered in the initial
benefit determination.

     10.2.4 Timing of Company Response. The Company shall respond in
writing to such claimant within 60 days after receiving the request for review. If the
Company determines that special circumstances require additional time for processing the
claim, the Company can extend the response period by an additional 60 days by notifying the
claimant in writing, prior to the end of the initial 60-day period, that an additional
period is required. The notice of extension must set forth the special circumstances and the
date by which the Company expects to render its decision.

     10.2.5 Notice of Decision. The Company shall notify the claimant in writing of
its decision on review. The Company shall write the notification in a manner calculated to
be understood by the claimant. The notification shall set forth:

     10.2.5.1 The specific reasons for the denial,

     10.2.5.2 A reference to the specific provisions of the Plan on which the denial
is based,

     10.2.5.3 A statement that the claimant is entitled to receive, upon request and
free of charge, reasonable access to, and copies of, all documents, records and
other information relevant (as defined in applicable ERISA regulations) to the
claimant’s claim for benefits, and

     10.2.5.4 A statement of the claimant’s right to bring a civil action under
ERISA Section 502(a).

8

 

Article 11

Administration and Finances

     11.1 Administration. Unless otherwise determined by the Compensation Committee of the
Company’s Board of Directors, the Company’s Chief Executive Officer (“CEO”) or his or her
designee shall be the named fiduciary and shall act for the Company under this Plan, except with
respect to the CEO’s participation, in which case the Compensation Committee or its designee shall
be the named fiduciary and act for the Company.

     11.2 Powers of the Company. The Company shall have all powers necessary to administer
the Plan, including, without limitation, the sole powers and discretionary authority:

     11.2.1 to interpret the provisions of the Plan; and

     11.2.2 to establish rules for the administration of the Plan and to prescribe any forms
required to administer the Plan.

     11.3 Actions of the Company. No Participant shall receive a benefit under this Plan
unless the Company has determined in its discretion that the Participant is entitled to the
benefit. All determinations, interpretations, rules, and decisions of the Company shall be
conclusive and binding upon all persons having or claiming to have any interest or right under the
Plan.

     11.4 Delegation. The Company shall have the power to delegate specific duties and
responsibilities to officers or other employees of the Company or other individuals or entities.
Any delegation by the Company may allow further delegations by the individual or entity to which
the delegation is made, The Company may rescind any delegation at any time, Each person or entity
to which a duty or responsibility has been delegated shall be responsible for the exercise of such
duty or responsibility and shall not be responsible for any act or failure to act of any other
person or entity.

     11.5 Reports and Records. The Company and those to whom the Company has delegated
duties under the Plan shall keep records of all their proceedings and actions and shall maintain
books of account, records, and other data as shall be necessary for the proper administration of
the Plan and for compliance with applicable law.

     11.6 Finances. The costs of the Plan shall be borne by the Company, except as
otherwise provided herein.

Article 12

Amendments and Termination

     The Company may amend or terminate the Plan, in full or in part, at any time and from time to
time, provided that one of the following is true: (i) the Plan for the Participant is exempt from
Section 409A of the Code, (ii) the amendment or termination does not cause an acceleration of
benefits under Section 409A of the Code, (iii) the acceleration is covered by an exception to the
prohibition on accelerations under Section 409A, or (iv) the Company and the Participant
acknowledge in writing that the amendment or termination accelerates the payment of benefits and is
likely to result in Section 409A penalties. Any amendment shall be filed with the Plan documents
maintained by the Company.

9

 

Article 13

Miscellaneous

     13.1 Nonalienation. No benefit payable at any time under this Plan shall be subject in
any manner to alienation, sale, transfer, assignment, pledge, attachment, or encumbrance of any
kind.

     13.2 Tax Withholding. The Company shall withhold any applicable income or employment
taxes that are required to be withheld from the severance benefits provided under this Plan.

     13.3 Limitation on Liability. The Company does not guarantee benefits payable under
any insurance coverage described or referred to herein, and any benefits thereunder shall be the
exclusive responsibility of the insurer that is required to provide such benefits under such
policy.

     13.4 Transfer to Affiliate. If a Participant transfers employment to an Affiliate that
sponsors or adopts this Plan and extends participation to the Participant, the Affiliate shall
become the “Company” for all purposes under this Plan and the Participant shall not be deemed to
have separated from service solely by virtue of such transfer for any purpose under this Plan. In
any case, the Company shall be released from all obligations under this Plan in connection with the
Participant as of the transfer of employment.

     13.5 Assignment to Successor. The Company shall assign its rights and obligations
under this Plan to any successor organization resulting from a merger, acquisition or affiliation
involving the Company, or resulting from a sale of substantially all of the Company’s assets.

     13.6 Controlling Law. This Plan shall in all respects be governed by, and construed in
accordance with, the laws of the State of Delaware (without regard to the principles of conflicts
of laws).

     13.7 Exemption from Section 409A. Separation pay up to two times the lesser of (i) the
participant’s annualized compensation for the year preceding the year of the Separation from
Service, or (ii) the maximum amount of compensation that could be taken into account under a
qualified plan pursuant to Section 401(a)(17) of the Code for the year of separation from service,
can be exempt from Section 409A of the Code, subject to the Plan satisfying certain conditions. For
benefits provided under Section 5.1 that are equal to or less than the separation pay limit, the
Company and Participant intend that the exemption apply. To the extent such benefits exceed the
separation pay limit, the Company and the Participant intend that the Plan comply with the
requirements of Section 409A. The terms of this Plan shall be interpreted and applied consistent
with such intent.

     13.8 Benefit of Other Agreements. If a Participant becomes entitled to receive
compensation or benefits under the terms of the Plan, such compensation or benefits will be reduced
by other severance benefits payable under any plan, program, policy or practice of the Company or
any Affiliate or any agreement or other arrangement between the Participant and the Company or an
Affiliate. It is intended that the Plan provide compensation or benefits that are supplemental to
severance benefits and that are actually received by a Participant pursuant to any plan, program,
policy or practice of the Company or an Affiliate or any agreement or arrangement between a
Participant and the Company or an Affiliate, such that the net effect to a Participant of
entitlement to any similar benefits that are contained both in the Plan and in any other existing
plan, program, policy or practice of the Company or any Affiliate or agreement or arrangement
between a Participant and the Company or an Affiliate will be to provide the Participant with the
greater of the benefits under the Plan or under such other plan, program, policy, practice, or
agreement or arrangement except for amounts payable under any retirement plans or stock purchase
plans of the Company in which the Participant may participate.

10

 

     13.9 Savings Clause. If the Participant is a “specified employee,” as such term is
defined pursuant to Section 409A of the Code and the regulations and guidance issued thereunder,
and an amount payable under this Plan constitutes deferred compensation (within the meaning of
Section 409A) the payment of which is required to be delayed pursuant to the six-month delay rule
set forth in Section 409A in order to avoid taxes or penalties under Section 409A, then such
Payments shall not be made until the earlier of the Participant’s death or six months and one day
after the Participant’s last day of employment.

	 	 	 	 	 

	 	 	CIENA CORPORATION
	 
	 

	 	By:
	 	/S/ David M. Rothenstein
	 

	 	 	 	 
	 

	 	Title:
	 	Sr. Vice President, General Counsel & Secretary
	 

	 	Date:
	 	June 8, 2011

11

 

EXHIBIT A

SEVERANCE AND OUTPLACEMENT SCHEDULE

	 	 	 	 	 	 	 
	Position Level	 	Salary Grade(s)	 	Cash Severance	 	Outplacement Assistance
	Chief Executive
Officer

	 	E4
	 	An amount equal to
two times Total
Target Cash
	 	Company will pay for
12 months of executive
outplacement
assistance through its
then-current
outplacement agency
	 
	 	 	 	 	 	 
	Senior Vice President

	 	E3
	 	An amount equal to
one times Total
Target Cash
	 	Company will pay for
12 months of executive
outplacement
assistance through its
then-current
outplacement agency
	 
	 	 	 	 	 	 
	Vice President

	 	E1, E2
	 	An amount equal to
four weeks of Base
Salary (annual Base
Salary divided by
52) times each year
of service, subject
to a minimum of 26
weeks and a maximum
of 52 weeks of Base
Salary
	 	Company will pay for 6
months of executive
outplacement
assistance through its
then-current
outplacement agency

 

 

EXHIBIT B

RELEASE OF CLAIMS

[TO BE SIGNED FOLLOWING SEPARATION FROM SERVICE]

     In exchange for the severance benefits to be provided to me under the Ciena Corporation U.S.
Executive Severance Benefit Plan (the “Plan”), and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, I, on behalf of my
heirs, representatives, successors and assigns (“Releasing Party”) hereby:

     1. Release, waive and fully discharge Ciena Corporation and its affiliates, subsidiaries,
officers, directors, employees, agents, representatives, predecessors, successors and assigns
(collectively, “Released Parties”), and each and all of them, absolutely, unconditionally
and irrevocably, from, against and in respect of any and all claims, actions, suits, proceedings,
demands, judgments, costs and expenses (including attorneys’ fees and court costs), liabilities,
obligations or damages of any kind or nature whatsoever, whether asserted or unasserted, mature or
contingent, known or unknown, which Releasing Party ever had, now has or may have against the
Released Parties, from the beginning of time up to the date of execution of this Release, and
without limiting the generality of the foregoing, directly or indirectly arising out of my
employment by and employment relationship with Released Parties or the separation thereof. Further,
I understand that my employment was terminated, and release, waive and fully discharge the Released
Parties from any liability or obligation to reinstate or reemploy me in any capacity.

     2. Understand that I will receive no other or further severance payments from the Released
Parties other than the severance benefits set forth in the Plan.

     3. Declare that I have made no assignment and will make no assignment of the claims which are
being released and discharged by this Release.

     4. Agree not to file (or ask or allow anyone to file on my behalf) any claim, action, charge,
complaint or lawsuit of any kind based on events occurring prior to the date of execution of this
Release with any state or federal court or administrative agency, based upon, arising out of, or
relating to any claim, demand, or cause of action released herein. This provision shall not apply
to any non-waivable charges or claims, including any claim alleging that the waiver under the Age
Discrimination in Employment Act of 1967 was not knowing or voluntary.

     5. Agree that, in the event that I should decide to commence any claim, action, charge,
complaint or lawsuit of any kind against the Released Parties, except as it relates to the
enforcement of any rights I may have under the Plan or that may arise after the date of execution
of this Release, I will be obligated to repay Ciena the severance payment paid to me pursuant to
the Plan and will be deemed to have breached this Release and will be liable for any damages, costs
and attorneys’ fees suffered by Released Parties as a result of my breach.

     6. Understand that the aforesaid benefits are not to be construed as an admission on the part
of said Released Parties of any liability whatsoever and agree not to disclose, publicize or cause
to be publicized any of the terms and conditions of this Plan.

     7. Expressly waive and release any and all rights and benefits under Section 1542 of the Civil
Code of the State of California (or any analogous law of any other state), which reads as follows:

 

 

	 	 	 	“A general release does not extend to claims which the creditor does not know or
suspect to exist in his favor at the time of executing the release, which, if known
by him, must have materially affected his settlement with the debtor.”

     8. Acknowledge that, if any provision of this Release or any portion or provision hereof
applicable to any particular situation or circumstance is held invalid, the remainder of this
Release or the remainder of such provision (as the case may be) and the application thereof to
other situations or circumstances, shall not be affected thereby.

     9. Acknowledge that this Release constitutes a knowing and voluntary waiver of any and all
rights or claims that I have or may have under the Federal Age Discrimination In Employment Act, as
amended by the Older Workers’ Benefit Protection Act of 1990, 29 U.S.C. §§ 621, et seq.
Specifically, I acknowledge that I have read this Release carefully, that I have been advised by
Ciena and have had the opportunity to consult with counsel before signing this Release if I
believed that was necessary, and that I have freely, knowingly and voluntarily entered into this
Release after due consideration.. I also acknowledge that no promise or inducement has been offered
to me by Ciena or any of its agents, except as expressly set forth herein, and that I am not
relying upon any such promise or inducement in entering into this Release. I acknowledge that the
consideration offered pursuant to the Plan exceeds any payment, benefit or other thing of value to
which I would otherwise be entitled.

     10. Understand that I am hereby notified that I have 21 days from my receipt of this Release
to consider signing this Release. I understand that I am hereby advised to consult with an attorney
before signing this Release. I understand that I may revoke this Release at any time within the
seven-day period following the date I sign this Release. I further understand that this Release
shall not become effective or enforceable until the seven-day revocation period expires. If I
revoke this Release, I will relinquish any rights to the consideration provided to me pursuant to
this Release.

     11. Acknowledge that I have read this Release and that I am relying solely upon the contents
of this Release and am not relying on any other representations whatsoever of the Released Pasties
as an inducement to enter into this agreement.

	 	 	 

	 

	 	RELEASING PARTY
	 
	 	 
	Dated:     
                   
                 
                    
                 

	 	 
	 

	 	 
	 

	 	Participant’s Signature

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