Document:

exv10w37

 

Exhibit 10.37

Confidential Materials omitted and filed separately with the

Securities and Exchange Commission. Asterisks denote omissions.

SECOND NOTES AMENDMENT AND WAIVER AGREEMENT

     This Second Notes Amendment and Waiver Agreement (the “Agreement”) is entered into as
of May 2, 2005, among Bookham Technology plc, a public limited company incorporated under the laws
of England and Wales (“Bookham plc”), Bookham, Inc., a Delaware corporation (“Bookham,
Inc.” and, together with Bookham plc and its other subsidiaries whose names appear on the
signature pages hereto, the “Bookham Parties”), Nortel Networks UK Limited
(“NNUKL”), Nortel Networks Corporation (“Nortel Networks”) and Nortel Networks
Limited, a Canadian corporation (“NNL”).

     WHEREAS, the parties to this Agreement are parties to a Restructuring Agreement (the
“Restructuring Agreement”), dated as of December 2, 2004;

     WHEREAS, Bookham plc has issued to NNUKL an amended and restated Series B-1 Senior Secured
Note due November 8, 2006 in an original principal amount of $30,000,000.00 (as amended,
supplemented or modified from time to time in writing, the “Series B-1 Note”);

     WHEREAS, Bookham, Inc. has issued to NNUKL an amended and restated Series A-1 Senior Secured
Note due November 8, 2007 in an original principal amount of $20,000,000.00 (as amended,
supplemented or modified from time to time in writing, the “Series A-2 Note”, together with
the Series B-1 Note, the “Notes”);

     WHEREAS, Bookham plc has entered into the Optical Components Supply Agreement with NNL,
effective as of November 8, 2002, as amended by the Addendum to Optical Components Supply Agreement
dated as of February 7, 2005 (the “Addendum”) between NNL and Bookham plc (as amended,
supplemented or modified from time to time in writing, the “Supply Agreement”);

     WHEREAS, Bookham, Inc. and certain of its subsidiaries and NNUKL are parties to an Amended and
Restated U.S. Security Agreement, dated as of December 2, 2004 (as amended, supplemented or
modified from time to time in writing, the “U.S. Security Agreement”);

     WHEREAS, Bookham, Inc. and certain of its subsidiaries and Nortel Networks and certain of its
subsidiaries have entered into certain amendment and waiver agreements, certain security agreements
and other agreements and delivered certain other documents in connection with the foregoing (all
such agreements and documents as amended, supplemented or modified from time to time in writing,
and together with the U.S. Security Agreement, the Notes and the Restructuring Agreement, the
“Senior Note Documents”);

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     WHEREAS, Bookham, Inc. and the other Bookham Parties and NNUKL desire to further amend the
Notes as set forth herein;

     WHEREAS, the Bookham Parties have requested that NNUKL agree to waive certain provisions of
the Notes pursuant to the terms and subject to the conditions set forth herein;

     WHEREAS, the Bookham Parties have requested that NNL amend certain provisions of the Supply
Agreement pursuant to the terms and subject to the conditions set forth in the Supply Agreement
Addendum substantially in the form set forth in Exhibit A (the “Supply Agreement
Addendum”); and

     WHEREAS, in consideration of the foregoing, the parties desire to amend the U.S. Security
Agreement and certain of the Senior Note Documents and enter into certain other security agreements
(i) to provide that the collateral pledged to secure the obligations under the Notes shall also be
pledged to secure the obligations of Bookham plc and certain of its Subsidiaries under the Supply
Agreement and (ii) to cause Bookham, Inc. and its subsidiaries to pledge certain additional assets
to secure the various obligations of Bookham, Inc., Bookham plc and the guarantors under each of
the Series B-1 Note, the Series A-2 Note and the Supply Agreement (such amendments and additional
security documents as further described in Section 5(b) through 5(e) hereof, the “Additional
Security Documents”).

     NOW THEREFORE, in consideration of the mutual premises hereinafter set forth and for other
good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto
hereby agree as follows:

1. Definitions. The following terms used herein shall have the meaning set forth below:

          (i) “Affiliate” means, with respect to any Person, any other Person directly or
indirectly controlling, controlled by, or under common control with, that Person. A person shall
be deemed to control another Person if the first Person possesses, directly or indirectly, the
power (i) to vote 5% or more of the equity interests having ordinary voting power for the election
of directors (or comparable governing body) of such Person or (ii) to direct or cause the direction
of the management and policies of such other Person, whether through the ownership of voting
securities, by contract or otherwise. For purposes of this Agreement, none of Nortel Networks,
NNUKL or NNL or any of their respective Subsidiaries shall be deemed to be an “Affiliate” of any
Bookham Party or any of their respective Subsidiaries.

          (ii) “Bankruptcy Event” means, with respect to any Person, any of the following
events (a) such Person commences a case or other proceeding under any existing or future law of
any jurisdiction, domestic or foreign, relating to bankruptcy, reorganization, arrangement,
adjustment of debt, relief of debtors, dissolution, insolvency, liquidation or conservatorship,
seeking to have an order for relief entered with respect to it, or seeking to adjudicate it a
bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, winding-up,
liquidation, dissolution, composition or other relief with respect to it or its debts, or
seeking the appointment of a receiver, trustee, custodian, conservator or other similar

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official for it or for all or any substantial part of its assets; (b) the commencement against
such Person of any such case or proceeding or other action of a nature referred to in clause (a)
above which (1) results in the entry of an order for relief or any such adjudication or
appointment or (2) that is not dismissed, discharged or bonded within 60 days after
commencement; (c) the adjudication of such Person as insolvent or bankrupt, or any order of
relief or other order approving any such case or proceeding is entered; (d) such Person suffers
any appointment of any custodian, trustee, receiver, receiver-manager or the like for it or any
substantial part of its property that is not discharged or stayed within 60 days; (e) a warrant
of attachment (to the extent such warrant of attachment does not constitute an attachment in aid
of jurisdiction or other similar pre-judgment remedy, and Nortel and its Affiliates are
satisfied in their reasonable judgment that such attachment does not affect the perfection or
priority of any security interest in the name of NNUKL as security agent in such property or in
any material respect the rights or remedies of Nortel and its Affiliates therein), execution or
similar process shall have been issued against any substantial part of such Person’s property if
the property, plant and equipment of such Person subject to such warrant or writ at the time of
such issue has an aggregate fair market value greater than or equal to $500,000 and is not
discharged or stayed within 60 days; (f) such Person makes a general assignment for the benefit
of creditors; (g) such Person fails to pay or states that it is unable to pay or is unable to
pay, its debts generally as they become due; (h) such Person calls a meeting of its creditors
with a view to arranging a composition, adjustment or restructuring of its debts; or (i) such
Person, by any act or failure to act, indicates its consent to, approval of or acquiescence of
any of the foregoing or takes any corporate or other action for the purpose of effecting any of
the foregoing.

          (iii) “Change of Control” means (A) the failure of Bookham Inc. to own, directly or
indirectly, 100% of the voting stock or other ownership interest in (i) Bookham plc or (ii) any
of its Subsidiaries that sell Products (as defined in the Supply Agreement) to Nortel or its
Affiliates or any contract manufacturer designated by Nortel or its Affiliates or (B) any of the
following with respect to Bookham Inc. or Bookham Technology plc: any (i) merger, consolidation,
share exchange or other similar transaction, unless Bookham Inc. or Bookham Technology plc, as
the case may be, is the surviving party, provided that no Event of Default shall have occurred
and be continuing at the time of such proposed transaction or would result therefrom, (ii) sale,
transfer, exchange or other disposition of all or substantially all of its assets in a single
transaction or series of related transactions, (iii) consummation of a tender offer or exchange
offer for a majority of the outstanding voting securities of such entity; (iv) issuance of that
number of voting securities of such entity that would, after such issuance, constitute a
majority of the outstanding voting securities of such entity; (v) any Person or group of Persons
acting in concert shall have acquired by contract or otherwise, or shall have entered into a
contract or arrangement that, upon consummation, will result in its or their having the power to
direct or cause the direction, directly or indirectly, of the management or policies of such
Bookham Party, whether through the ownership of voting securities, through ability to exercise
voting power, by contract or otherwise; or (vi) with respect to Bookham, Inc., (a) any Person or
two or more Persons (other than the Permitted Holders) acting as a group (as defined in Section
13d-3 of the Securities Exchange Act of 1934) shall have acquired beneficial ownership (within
the meaning of Rule 13d-3 of the Securities and Exchange Commission under the Securities
Exchange Act of 1934) of

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35% or more of the outstanding shares of voting stock of Bookham, Inc.; or (b) individuals who,
as of the Reference Date, constitute the Board of Directors of Bookham, Inc. (the “Bookham
Incumbent Board”) cease for any reason to constitute at least a majority of the Board of
Directors of Bookham, Inc.; provided, however, that any individual becoming a director of
Bookham, Inc. subsequent to the Reference Date whose election, or nomination for election by
Bookham, Inc.’s shareholders was approved by a vote of at least a majority of the directors then
comprising the Bookham Incumbent Board shall be considered as though such individual were a
member of the Bookham Incumbent Board, but excluding, for this purpose, any such individual
whose initial assumption of office occurs as a result of either an actual or threatened election
contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the
Securities Exchange Act of 1934) or other actual or threatened solicitation of proxies or
contest by or on behalf of a Person other than the Board of Directors of Bookham, Inc.

          (iv) “Expiration Event” has the meaning set forth in Section 4 hereof.

          (v) “Indebtedness” means any obligation in respect of (i) borrowed money (excluding
intercompany loans), (ii) capitalized lease obligations, (iii) obligations under interest rate
agreements and currency agreements, (iv) guarantees of any obligation of any third Person, (v)
letters of credit, (vi) indemnity obligations or performance bonds and (vii) any obligation owed
for all or any part of the deferred purchase price of property or services (other than accounts
payable in the ordinary course of business payable on terms customary in the trade and not past
due).

          (vi) “Permitted Holder” means, with respect to any Person, any holder of more than
5% of the total outstanding shares of stock or other ownership interests in such Person on the
Reference Date.

          (vii) “Person” means any natural person, general or limited partnership,
corporation, limited liability company, firm, association, trust or other entity or
organization, including a government or political subdivision or agency or instrumentality
thereof.

          (viii) “Reference Date” means April 1, 2005.

          (ix) “Subsidiary” means, as to any Person, a corporation, partnership or other
entity of which shares of stock or other ownership interests having ordinary voting power (other
than stock or such other ownership interests having such power only by reason of the happening
of a contingency) to elect a majority of the board of directors or other managers of such
corporation, partnership or other entity at the time owned, or the management of which is
otherwise controlled, directly or indirectly through one or more intermediaries, or both, by
such Person.

     2. Amendment; Waiver; Further Actions. (a) Contemporaneously with the execution and
delivery of this Agreement, NNUKL hereby:

	 	(i)	 	waives the application of Section 4(a) and 4(b) of the Series
B-1 Note until the earlier of the twelve-month anniversary of the date hereof
and the

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	 	 	 	occurrence of an Expiration Event; except that if the Net Proceeds (as
defined in the Series B-1 Note) of the Qualified Financings (as defined in
the Series B-1 Note) during such period exceed $75,000,000 in the aggregate
(the “Excess Net Proceeds”), the Borrower (as defined in the Series
B-1 Note) shall within one (1) Business Day of the consummation of the
relevant Qualified Financing prepay in cash on a pro rata basis by wire
transfer of immediately available funds the outstanding obligations of the
Series B-1 Note in an amount equal to (a) 40% of the Net Proceeds of any
such Qualified Financings to the extent such Net Proceeds constitute all or
part of the Excess Net Proceeds less than the Threshold Net Proceeds (as
defined in the Series A-2 Note) and (b) 100% of the Threshold Net Proceeds
(as defined in the Series A-2 Note); and provided that the Borrower shall
not use the Net Proceeds of any Qualified Financings to retire, redeem,
prepay or repay any other Indebtedness of the Borrower (other than scheduled
principal and interest payments on Indebtedness in existence on the date
hereof as set forth in Schedule 3(d) hereto and any renewals, extensions or
refinancings of such Indebtedness (provided that, with
respect to any such renewal, extension or refinancing (a) the terms and
conditions thereof are no less favorable to the obligor thereon or to NNUKL
than the Indebtedness being renewed, refinanced or extended, (b) the average
life to maturity thereof is greater than or equal to that of the
Indebtedness being renewed, refinanced or extended and (c) such renewal,
extension or refinancing does not increase the principal amount of such
Indebtedness), but shall instead use such Net Proceeds (except for any Net
Proceeds applied to repay the Series B-1 Note as described above) for
working capital purposes in the ordinary course of business; and

	 	(ii)	 	waives the application of Section 4(a) of the Series A-2 Note
until the earlier of the repayment in full of the Series B-1 Note, the
twelve-month anniversary of the date hereof and the occurrence of an Expiration
Event (as defined herein); provided that the Borrower (as defined in the Series
A-2 Note) shall not be required to apply Threshold Net Proceeds (as defined in
the Series A-2 Note) to prepay the outstanding obligations under the Series A-2
Note to the extent that such Threshold Net Proceeds have already been applied
to prepay the outstanding obligations under the Series B-1 Note pursuant to
clause (i) above.

               Except as specifically waived hereby, each of the Notes shall continue in full force and
effect in accordance with the provisions thereof as in existence on the date hereof. After the
date hereof, any reference thereto shall mean any such document, as applicable, as modified hereby.

               (b) Contemporaneously with the execution and delivery of this Agreement, NNUKL, Bookham, Inc.
and the other Bookham Parties agree that the Notes are amended as follows:

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	 	(i)	 	Section 7(d) of each of the Notes shall be deleted in its
entirety and replaced with the following:
	 
	 	 	 	“(d) Neither the Borrower nor any Guarantor shall distribute, sell,
assign, transfer or otherwise dispose of any Collateral without the prior
written consent of the Holder while the Guaranteed Obligations are
outstanding, except for (i) the disposition of equipment having a fair
market value not to exceed $[**] in the aggregate and (ii) the sale of
the Swindon Property; provided that with respect to clause (ii), (x) no
Event of Default under the Notes or Supply Agreement Event of Default shall
have occurred and be continuing at the time of such sale and Nortel shall
have received a certificate signed by the chief executive officer or chief
financial officer of the Borrower stating that no Event of Default under the
Notes or Supply Agreement Event of Default has occurred and is continuing at
the time of such sale and (y) the Borrower shall use the Net Proceeds of
such sale for working capital purposes in the ordinary course of business.”
	 
	 	(ii)	 	The following new subsection (x) shall be inserted at the end
of Section 9(a) of each of the Notes:
	 
	 	 	 	“(x) a Supply Agreement Event of Default occurs under the Supply
Agreement.”
	 
	 	(iii)	 	The following new subsection (c) shall be inserted at the end
of Section 9 of each of the Notes:
	 
	 	 	 	“(c) If an Event of Default has occurred and is continuing, the Holder is
hereby authorized by the Borrower at any time and from time to time, to the
extent permitted by applicable law, without prior notice to the Borrower
(any such notice being expressly waived by the Borrower), to set off and
apply any amount due and owing by the Holder or any of its Affiliates or
their designees to or for the account of the Borrower or any of its
Affiliates (including any amounts that have been invoiced to the Holder or
any of its Affiliates or their designees by the Borrower or any of its
Affiliates), as the case may be, pursuant to the Supply Agreement or any
Related Supply Agreement (whether such amounts are owed by the Holder or its
Affiliates directly or indirectly or was originally owing by the Holder or
its Affiliates or has subsequently been assumed by the Holder or its
Affiliates) against any Guaranteed Obligations of the Borrower due and
payable to the Holder under this Note (whether at stated maturity, by
acceleration or otherwise; provided that for purposes of this section, the
Guaranteed Obligations shall be deemed to be automatically due and payable
upon the occurrence of a Bankruptcy Event under Section 9(a)(v) of this
Note), regardless of whether any such amount is in the same currency or is
booked or otherwise payable at the same office as the obligation against
which it is set off and regardless of whether the Holder

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	 	 	 	shall have made any demand for payment under this Note. The Holder agrees
to promptly notify the Borrower after any such setoff and application made
by the Holder or its Affiliates; provided that any failure to give such
notice shall not affect the validity of such setoff or application. The
rights of the Holder under this section are in addition to any other rights
and remedies which the Holder may have.”

	 	(iv)	 	The following new defined terms shall be inserted in
alphabetical order in Section 16 of each of the Notes:
	 
	 	 	 	““Affiliate” means, with respect to any Person, any other Person
directly or indirectly controlling, controlled by, or under common control
with, that Person. A person shall be deemed to control another Person if
the first Person possesses, directly or indirectly, the power (i) to vote 5%
or more of the equity interests having ordinary voting power for the
election of directors (or comparable governing body) of such Person or (ii)
to direct or cause the direction of the management and policies of such
other Person, whether through the ownership of voting securities, by
contract or otherwise. For purposes of this Note, none of the Lender,
Nortel, Nortel Networks Corporation or any of their respective Subsidiaries
shall be deemed to be an “Affiliate” of the Borrower, Bookham, Inc., the
Supplier or any of their respective Subsidiaries.”
	 
	 	 	 	““Nortel” has the meaning set forth in the Supply Agreement.”
	 
	 	 	 	““Related Supply Agreement” means any agreement in writing entered
into between Supplier or any of its Affiliates and any contract manufacturer
designated by Nortel or its Affiliates in connection with the Supply
Agreement for the purpose of purchasing products for or on behalf of Nortel
or its Affiliates from Supplier or its Affiliates.
	 
	 	 	 	““Second Addendum” means the Addendum to Optical Components Supply
Agreement dated as of April 1, 2005 between Nortel Networks Limited, a
Canadian corporation, and Bookham Technology plc that amends and supplements
the Supply Agreement.”
	 
	 	 	 	““Supplier” has the meaning set forth in the Supply Agreement.”
	 
	 	 	 	““Supply Agreement Event of Default” shall mean an “Event of
Default” as defined in the Second Addendum.
	 
	 	 	 	““Swindon Property” has the meaning set forth in that certain
Debenture dated as of May 2, 2005 among Nortel Networks UK Limited, Nortel
Networks Limited and the other secured parties named therein, as the Secured
Parties, and Bookham Technology plc, Bookham, Inc. and certain of their
respective Subsidiaries as the Chargors.”

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	 	(v)	 	The definition of “Security Agreements” in Section 16 of each
of the Notes shall be deleted in its entirety and replaced with the following:
	 
	 	 	 	““Security Agreements” means the “Security Agreements” as defined in
the Acquisition Agreement, and any additional Security Agreements
contemplated by the Restructuring Agreement and any amendments,
restatements, modifications or supplements to any of the foregoing that are
in writing.”

                    (c) Each of the Bookham Parties hereby acknowledges and agrees that the products ordered by
any designated contract manufacturer on behalf of NNL or its Affiliates from time to time pursuant
to the Supply Agreement or any other agreement entered into between Bookham plc or any of its
Affiliates and any contract manufacturer designated by NNL or its Affiliates (“Contract
Manufacturers”) for the purpose of purchasing products for or on behalf of NNL or its
Affiliates (“Related Supply Agreements”) are for the benefit of NNL and its Affiliates and
that the value provided to Bookham by way of price increases and other amendments set forth in the
Supply Agreement Amendment is being given directly or indirectly by NNL and its Affiliates. Each
of the Bookham Parties further acknowledges and agrees that each of NNL and its Affiliates shall
enjoy the rights of a third party beneficiary under any Related Supply Agreement between Bookham
plc or its Affiliates and any designated Contract Manufacturer. Each Bookham Party acknowledges
that NNL and its Affiliates are relying upon Bookham plc to produce and ship products to NNL’s
designated Contract Manufacturers according to the terms of the Supply Agreement and/or Related
Supply Agreements and that upon any failure by Bookham plc or its respective Affiliates to deliver
products to the designated Contract Manufacturers or otherwise perform under the Supply Agreement
or any Related Supply Agreement (except as may be provided in such documents), NNL and its
Affiliates, as the case may be, shall have a claim for damages against Bookham plc and its
Affiliates, as the case may be, for breach of contract or otherwise (except as may be provided in
such documents).

                    (d) Each of the Bookham Parties (A) agrees that, from the date hereof, all references to the
Notes or the Supply Agreement contained in the U.S. Security Agreement and the other Senior Note
Documents and any filing or other documents contemplated thereby shall mean the Notes or Supply
Agreement, as the case may be, as hereby amended and (B) agrees, and agrees to cause its respective
affiliates to, promptly execute and deliver any and all further agreements, instruments and other
documents, and to take any and all other actions, reasonably requested by NNUKL and Nortel Networks
to effect the purposes of this Agreement, including without limitation, executing and delivering
amended and restated notes, security agreements, deeds, mortgages, filings and other documents.

          3. Representations and Warranties. The Bookham Parties hereby jointly represent and
warrant to NNUKL and Nortel Networks as follows:

                    (a) Each Bookham Party is a corporation or legal entity duly organized and validly existing
under the laws of the jurisdiction of its organization and is duly qualified or licensed to do
business and is in good standing (if and to the extent such term is recognized in the relevant
jurisdiction) in each jurisdiction in which the property owned, leased or operated by it or the
nature of the business conducted by it makes such qualification or licensing necessary,

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except where the failure to so qualify would not reasonably be expected to result in damages
to the Bookham Parties of more than $1,000,000 in the aggregate.

                    (b) Each Bookham Party has the requisite corporate power and authority to own, lease and
operate its properties and to carry on its business as currently conducted and the requisite
corporate power and authority to enter into and perform this Agreement and all other agreements and
documents contemplated in clauses (b) through (f) of Section 5 hereof (together, the
“Additional Documents”) and to carry out the transactions contemplated by this Agreement
and the Additional Documents.

                    (c) This Agreement has been, and the Additional Documents when executed will be, duly executed
and delivered by the applicable Bookham Party, and constitute valid and binding obligations of such
Bookham Party, enforceable in accordance with their respective terms, except that no representation
is made with respect to the law of any jurisdiction outside of the United States, and subject as to
enforcement of remedies to the applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting generally the enforcement of creditors’ rights and subject to a court’s
discretionary authority with respect to the granting of a decree ordering specific performance or
other equitable remedies.

                    (d) Other than (A) as set forth on Schedule 3(d) hereto, (B) Indebtedness secured by
purchase money security interests, (C) the Series A-2 Note, (D) the Series B-1 Note, (E)
$25,500,000 aggregate principal amount of 7.0% senior unsecured convertible debentures issued by
Bookham, Inc. on December 20, 2004 plus accrued and unpaid interest from March 31, 2005 through the
date hereof and (F) capitalized leases, letters of credit, indemnity obligations and performance
bonds not exceeding U.S.$2,000,000 in the aggregate, the Bookham Parties do not have any
Indebtedness.

                    (e) The execution and delivery of this Agreement and the Additional Documents have been duly
authorized by all requisite corporate action on the part of the Bookham Parties party hereto and
thereto, as the case may be.

                    (f) Neither the execution or delivery by any Bookham Party of this Agreement or any Additional
Document, the consummation of the transactions contemplated hereby or thereby, nor the compliance
by the Bookham Parties with any of the provisions hereof or thereof (including, without limitation,
any obligation to prepay any amounts under the Notes) will (i) conflict with, violate or result in
the breach of, any provision of the certificate of incorporation or by-laws or other organizational
documents of any Bookham Party; (ii) conflict with, violate, or result in the breach by any Bookham
Party of any applicable law; (iii) conflict with, violate, result in the breach or termination of,
or constitute a default or give rise to any right of termination or acceleration or right to
increase the obligations or otherwise modify the terms under any contract, agreement or
understanding to which any Bookham Party is a party or by which any Bookham Party or any of its
assets is bound; or (iv) result in the creation of any lien upon any of the assets of the Bookham
Parties (other than the liens created pursuant to the transactions contemplated hereby), in each
case, with respect to the foregoing, except for such conflicts, violations, breaches, terminations,
defaults, rights or liens that have not had and would not reasonably by expected to have,
individually or in the aggregate, a material adverse effect on any Bookham Party.

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                    (g) No consent, approval or authorization of, permit from, or declaration, filing or
registration with, any governmental authority or any other person is required to be made or
obtained by any Bookham Party in connection with the execution, delivery and performance of this
Agreement or any Additional Document and the consummation of the transactions contemplated hereby
or thereby, except where the failure to obtain such consent, approval, authorization or permit, or
to make such declaration, filing or registration, has not had and would not reasonably be expected
to have, individually or in the aggregate, a material adverse effect on any Bookham Party.

                    (h) As of the date hereof, other than Bookham (Canada), Inc., neither Bookham, Inc., nor any
of its subsidiaries owns, leases or operates any assets in Canada, except for any Intellectual
Property registered in Canada. The aggregate fair market value of the assets of Bookham, Inc. and
its subsidiaries in Canada does not exceed $[**] as of the date hereof. “Intellectual
Property” means trademarks, service marks, brand names, distinguishing guises, trade dress,
trade names, words, symbols, color schemes, business names, internet domain names and other
indications of origin, patents and pending patent applications, utility models, inventors’
certificates and invention disclosures, technology, copyrights, know-how, goodwill and other
intellectual property necessary for the conduct of its business as currently conducted.

                    (i) Bookham Technology (Shenzhen) (FFTZ) Co. Ltd. and New Focus Pacific (SHIP) Co. Ltd. are
the only entities organized under the laws of China in which Bookham, Inc. or any of its
subsidiaries holds an equity interest; and Bookham International Ltd. owns all the outstanding
equity interests of Bookham Technology (Shenzhen) (FFTZ) Co. Ltd. and New Focus Pacific (SHIP) Co.
Ltd. free and clear of all Liens.

                    (j) Each Principal Subsidiary (as defined in the U.S. Security Agreement) of Bookham, Inc. is
a party to the U.S. Security Agreement and is a Guarantor (as defined in the Series A-2 Note) of
the obligations of Bookham, Inc. under the Series A-2 Note and the obligations of Bookham plc under
the Series B-1 Note and is a Pledgor Party under the U.S. Security Agreement.

                    (k) Since March 24, 2005, no Event of Default (as defined in the Notes) has occurred and is
continuing (other than any Event of Default that has been waived) and no Event of Default (as
defined in the Supply Agreement Addendum) has occurred and is continuing (other than any Event of
Default that has been waived).

                    (l) Since January 1, 2005, no material adverse change in the business of Bookham, Inc. or any
of its Subsidiaries has occurred.

                    (m) Bookham, Inc. has reviewed the impact of the amendment to the Supply Agreement, the
amendments to the Senior Note Documents, and the other matters contemplated herein, from an
accounting and legal perspective and it has or will take all necessary steps to ensure compliance
in all material respects with United States federal and state securities laws and U.S.
generally-accepted accounting principles.

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          4. Expiration Events. The occurrence of any of the following shall constitute an
“Expiration Event”):

          (a) an Event of Default (as defined in the Series B-1 Note or the Series A-2 Note) shall
have occurred and be continuing under either of the Notes (which Event of Default has not been
waived);

          (b) an Event of Default (as defined in the Supply Agreement Addendum) shall have occurred
and be continuing under the Supply Agreement (which Event of Default is not currently waived);

          (c) the occurrence of a Change of Control; or

          (d) (i) any of Bookham, Inc., Bookham Technology plc or Bookham Technology (Shenzhen)
(FFTZ) Co. Ltd. shall have become subject to a Bankruptcy Event or (ii) any other Bookham Party
or Bookham Parties shall have become subject to a Bankruptcy Event and the net book value of the
assets affected by any such Bankruptcy Event(s) (as calculated immediately before any such
Bankruptcy Event irrespective of any liabilities) is equal to or greater than $[**] in the
aggregate.

          5. Conditions to Effectiveness. This Agreement shall become effective as of the date
first above written when the following conditions precedent have been satisfied (each in form and
substance reasonably satisfactory to Nortel Networks and NNUKL):

     (a) the parties to this Agreement shall have received duly executed and delivered
counterparts of this Agreement, that, taken together bear the signatures of each of the parties
hereto.

     (b) Nortel Networks and NNUKL shall have received copies of the Second Amended and Restated
U.S. Security Agreement duly executed by the Bookham Parties, substantially in the form attached
as Exhibit B hereto;

     (c) Nortel Networks and NNUKL shall have received copies of the Debenture relating to the
real property at Swindon, U.K. and certain additional security duly executed by the Bookham
Parties, substantially in the form attached as Exhibit C hereto;

     (d) Nortel Networks and NNUKL shall have received copies of the Amended and Restated Charge
over Shares in Bookham International Limited duly executed by Bookham plc, substantially in the
form attached as Exhibit D hereto;

     (e) Nortel Networks and NNUKL shall have received copies of the Second Amended and Restated
Canadian Security Agreement duly executed by the relevant Bookham Parties, substantially in the
form attached as Exhibit E hereto;

     (f) Nortel Networks and NNUKL shall have received copies of the Supply Agreement Addendum
duly executed by Bookham Technology plc;

11

 

     (g) Nortel Networks and NNUKL shall have received duly executed copies of all other
documentation, amendments and authorizations reasonably requested by Nortel Networks or NNUKL to
effect a security interest over the additional collateral (as described in the Proposal Letter
from NNUKL to Bookham, Inc., dated March 24, 2005).

     (h) The security interest granted by the Bookham Parties to NNUKL and NNL pursuant to the
Additional Security Documents shall constitute a legal, valid and perfected security interest
and first-priority lien in all collateral (as described in the relevant Additional Security
Document) securing the payment and performance by the Bookham Parties of their respective
obligations under the Notes, the Supply Agreement and the other Senior Note Documents, as
applicable, upon the filing of financing statements in favor of the secured parties named
therein in the relevant jurisdictions as further described in the relevant Additional Security
Document.

     (i) Nortel Networks and NNUKL shall have received for each Bookham Party (i) copies of the
organization documents, certified to be true and complete as of a recent date acceptable to
Nortel by the appropriate governmental authority of the state of jurisdiction of is
incorporation; (ii) signature and incumbency certificates of the officers of the Bookham Parties
executing this Agreement, the Supply Agreement Addendum and each Additional Security Document to
which it is a party; (iii) resolutions of the board of directors or similar governing body of
each Bookham Party approving and authorizing the execution, delivery and performance of this
Agreement, the Supply Agreement Addendum and each Additional Security Document to which it is a
party, certified as of the date hereof by its Secretary or Assistant Secretary as being in full
force and effect; and (iv) to the extent applicable, a good standing certificate from the
applicable governmental authority of each Bookham Party’s jurisdiction of incorporation, dated a
recent date prior to the date hereof.

     (j) The representations and warranties made by each of the Bookham Parties in this
Agreement and the Additional Documents shall be true and correct in all material respects on and
as of the date of the effectiveness of this Agreement as if made on and as of such date.

     (k) Nortel Networks and NNUKL shall have received legal opinions of counsel to the Bookham
Parties covering such matters incident to the transactions contemplated by this Agreement and
the Additional Documents as NNUKL and NNL may require.

          6. Indemnification. Each of the Bookham Parties hereby agrees, jointly and
severally, to indemnify and hold harmless Nortel Networks and each of its affiliates and each of
their respective officers, directors, employees, agents, advisors and representatives (each, an
“Indemnified Party”) from and against any and all claims, damages, losses, liabilities
and expenses (including, without limitation, fees and disbursements of counsel), joint or
several, that may be incurred by or asserted or awarded against any Indemnified Party
(including, without limitation, in connection with any investigation, litigation or proceeding
or the preparation of a defense in connection therewith), in each case arising out of or in
connection with or by reason of this Agreement, the Restructuring Agreement, the Notes, the
Supply Agreement or the other Senior Note Documents, or the transactions contemplated thereby or
hereby, as applicable. In the case of an investigation, litigation or other proceeding to which
the indemnity in this paragraph applies, such indemnity shall be effective whether or not such

12

 

investigation, litigation or proceeding is brought by the any of the Bookham Parties, any
of their directors, security holders or creditors, an Indemnified Party or any other person or
an Indemnified Party is otherwise a party thereto and whether or not the transactions
contemplated hereby are consummated. In no event, however, shall any Bookham Party be liable on
any theory of liability for any special, indirect, consequential or punitive damages (including,
without limitation, any loss of profits, business or anticipated savings), it being understood
that the foregoing limitation shall not apply to any such damages of a third party that result
in any claim against, damage to or loss, liability or expense of an Indemnified Party.

          No Indemnified Party shall have any liability (whether in contract, tort or otherwise) to
any of the Bookham Parties or any of their respective affiliates, security holders or creditors
for or in connection with this Agreement, the Restructuring Agreement, the Notes, the Supply
Agreement or the other Senior Note Documents, or the transactions contemplated thereby or
hereby, as applicable, except as set forth in the Supply Agreement. In no event, however, shall
any Indemnified Party be liable on any theory of liability for any special, indirect,
consequential or punitive damages (including, without limitation, any loss of profits, business
or anticipated savings).

          7. Miscellaneous.

                    (a) Parties in Interest. All covenants, agreements, representations, warranties and
undertakings in this Agreement made by and on behalf of any of the parties hereto shall bind and
inure to the benefit of the respective successors and permitted assigns of the parties hereto.

                    (b) Amendments and Waivers. Except as set forth in this Agreement, changes in or
additions to this Agreement may be made, or compliance with any term, covenant, agreement,
condition or provision set forth herein may be omitted or waived (either generally or in a
particular instance and either retroactively or prospectively), upon the written consent of all of
the parties to this Agreement.

                    (c) Governing Law. This Agreement shall be governed by and construed in accordance
with the internal laws of the State of New York (including, without limitation, Sections 5-1401 and
5-1402 of the New York General Obligations Law, which are expressly made applicable to this
Agreement).

                    (d) Notices. All notices, requests, consents, and other communications under this
Agreement shall be in writing and shall be deemed delivered (i) two business days after being sent
by registered or certified mail, return receipt requested, postage prepaid or (ii) one business day
after being sent via a reputable nationwide overnight courier service guaranteeing next business
day delivery, in each case to the intended recipient as set forth below:

                         (i) If to any Bookham Party, at Bookham Technology plc, 10 Brewer Hunt Way, Ottawa, ON K2K
2B5, Canada, Attention: General Counsel, with a copy to Thomas S. Ward, Esq., Wilmer Cutler
Pickering Hale and Dorr LLP, 60 State Street, Boston, MA 02109; and

13

 

                         (ii) If to NNUKL or Nortel Networks, at Nortel Networks Corporation, 8200 Dixie Road,
Brampton, ON L6T 5P6, Canada, Attention: Secretary, with a copy to Robert Fishman, Nortel Networks
Corporation, 2221 Lakeside Boulevard, Mail Stop 991-14-B40, Richardson, TX 75082-4399.

                         (iii) Any party may give any notice, request, consent or other communication under this
Agreement using any other means (including, without limitation, personal delivery, messenger
service, telecopy, first class mail or electronic mail), but no such notice, request, consent or
other communication shall be deemed to have been duly given unless and until it is actually
received by the party for whom it is intended. Any party may change the address to which notices,
requests, consents or other communications hereunder are to be delivered by giving the other
parties notice in the manner set forth in this Section 7(d).

               (e) Waiver of Jury Trial. EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY
AND UNCONDITIONALLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

               (f) Agreements Remain in Effect; No Waiver. Except as expressly provided herein, all
terms and provisions of the Senior Note Documents shall remain unchanged and in full force and
effect and are hereby ratified and confirmed. Each Bookham Party (i) hereby acknowledges that an
aggregate principal amount equal to $25,860,600 is currently outstanding under the Series B-1 Note
and the aggregate principal amount equal to $20,000,000 is currently outstanding under the Series
A-2 Note and (ii) hereby irrevocably waives any defenses, offsets or counterclaims existing on or
prior to the date hereof to the performance of their respective obligations under the Senior Note
Documents and the Supply Agreement (other than obligations with respect to any invoices issued to
Nortel which are past due). No waiver by NNUKL or Nortel Networks of any Event of Default
hereunder shall be deemed to be a waiver of any other Event of Default.

               (g) Reservation of Rights. Each party hereto expressly reserves all of its respective
rights, remedies, powers and privileges under the Supply Agreement and the Senior Note Documents,
except to the extent specifically provided to the contrary herein (including, without limitation,
in Section 7(f) hereto). No failure on the part of Nortel Networks, NNUKL or NNL to exercise, and
no delay or omission by Nortel Networks, NNUKL or NNL in exercising, any right, remedy, power or
privilege under the Supply Agreement or the Senior Note Documents, at law, or in equity, shall
operate as a waiver thereof, nor shall any single or partial exercise by Nortel Networks, NNUKL or
NNL of any such right, remedy, power or privilege preclude any other or further exercise thereof or
the exercise of any other right, remedy, power or privilege under the Senior Note Documents, the
Supply Agreement or otherwise.

               (h) Entire Agreement. This Agreement and the exhibits hereto together with any other
agreement referred to herein constitute the entire agreement among the parties with respect to the
subject matter hereof.

14

 

               (i) Severability. The invalidity or unenforceability of any provision hereof shall in
no way affect the validity or enforceability of any other provision.

               (j) Counterparts; Facsimile Signatures. This Agreement may be executed in any number
of counterparts, each of which shall be deemed to be an original, and all of which shall constitute
one and the same document. This Agreement may be executed by facsimile signatures.

               (k) Properties in China. Promptly upon the request of NNUKL or Nortel, and to the
extent permitted by law, Bookham Inc. shall cause the property, plant and equipment (including real
property, all inventory set forth on Exhibits A and B to the Addendum and all Accounts Receivable
owing by Nortel or its Affiliates (whether originally owing by Nortel or its Affiliates or
subsequently assumed by Nortel or its Affiliates) or any Contract Manufacturer (as defined in the
Second Amended and Restated US Security Agreement) to Bookham, Inc. or its Affiliates, including
any accounts receivable relating to the inventory described above) located in the People’s
Republic of China that is owned by subsidiaries of Bookham, Inc. (including Bookham Technology
(Shenzhen) (FFTZ) Co. Ltd. and New Focus Pacific (SHIP) Co. Ltd.) to be mortgaged or pledged on a
first priority-basis (to the extent such priority is contemplated by applicable law) for the
benefit of NNUKL and the other Secured Parties (as defined in the Second Amended and Restated US
Security Agreement) in the manner contemplated by Section 2(b) of the Restructuring Agreement
together with such evidence of corporate authority, legal opinions, evidence of insurance, surveys
and other related matters as NNUKL, Nortel and NNL may reasonably require. The Bookham Parties
acknowledge that the agreement to deliver additional collateral and additional documents described
in this Section 7(k) is a material inducement to Nortel, NNUKL and NNL to enter into this
Agreement.

[Remainder of page intentionally left blank]

15

 

     IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto as of the day and
year first written above.

	 	 	 
	 

	 	BOOKHAM TECHNOLOGY PLC
	 
	 	 
	 

	 	By: /s/ Stephen Abely
	 

	 	Name: Stephen Abely
	 

	 	Title: Director
	 
	 	 
	 

	 	BOOKHAM, INC.
	 
	 	 
	 

	 	By: /s/ Stephen Abely
	 

	 	Name: Stephen Abely

Title: Chief Financial Officer
	 
	 	 
	 

	 	BOOKHAM (US), INC.
	 
	 	 
	 

	 	By: /s/ Stephen Abely
	 

	 	Name: Stephen Abely

Title: President
	 
	 	 
	 

	 	NEW FOCUS, INC.
	 
	 	 
	 

	 	By: /s/ Stephen Abely
	 

	 	Name: Stephen Abely

Title: President
	 
	 	 
	 

	 	ONETTA, INC.
	 
	 	 
	 

	 	By: /s/ Stephen Abely
	 

	 	Name: Stephen Abely

Title: President

[SECOND NOTES AMENDMENT AND WAIVER AGREEMENT ]

16

 

	 	 	 
	 

	 	IGNIS OPTICS, INC.
	 
	 	 
	 

	 	By: /s/ Stephen Abely
	 

	 	Name: Stephen Abely

Title: President
	 
	 	 
	 

	 	BOOKHAM (CANADA), INC.
	 
	 	 
	 

	 	By: /s/ Michael Scott
	 

	 	Name: Michael Scott

Title: President
	 
	 	 
	 

	 	BOOKHAM (SWITZERLAND) AG
	 
	 	 
	 

	 	By: /s/ Stephen Abely
	 

	 	Name: Stephen Abely
	 

	 	Title: Director

[SECOND NOTES AMENDMENT AND WAIVER AGREEMENT ]

17

 

	 	 	 
	 

	 	NORTEL NETWORKS UK LIMITED
	 
	 	 
	 

	 	By: /s/ Christian Waida
	 

	 	Name: Christian Waida
	 

	 	Title: Director
	 
	 	 
	 

	 	NORTEL NETWORKS CORPORATION
	 
	 	 
	 

	 	By: /s/ Gordon A. Davies
	 

	 	Name: Gordon A. Davies

Title: Corporate Secretary
	 
	 	 
	 

	 	By: /s/ K. B. Stevenson
	 

	 	Name: K. B. Stevenson
	 

	 	Title: Treasurer
	 
	 	 
	 

	 	NORTEL NETWORKS LIMITED
	 
	 	 
	 

	 	By: /s/ Gordon A. Davies
	 

	 	Name: Gordon A. Davies

Title: Corporate Secretary
	 
	 	 
	 

	 	By: /s/ K. B. Stevenson
	 

	 	Name: K. B. Stevenson
	 

	 	Title: Treasurer

[SECOND NOTES AMENDMENT AND WAIVER AGREEMENT ]

18exv10w38

 

Exhibit 10.38

CONTRACT OF EMPLOYMENT

This Agreement is dated the                 day of                2003.

BETWEEN:

	(1)	 	BOOKHAM TECHNOLOGY PLC whose registered office is at 90 Milton Park, Abingdon, Oxfordshire
OX14 4RY (the “Company”); and
	 
	(2)	 	Mr Jim Haynes of 949 Via Bolzano, Goleta, CA 93117, USA
	 
	1.	 	JOB TITLE AND DUTIES
	 
	1.1.	 	You will be employed as (job title to be confirmed), reporting to the Chief Operating Officer
or such other person as the Company may from time to time determine (“your Manager”).
	 
	1.2.	 	You may however be required to carry out such alternative or additional duties as the Company
may require from time to time and you agree that you may be seconded to work for one or more
Group Companies at any time.
	 
	1.3.	 	You agree to faithfully and diligently perform your duties to the best of your ability and
use your best endeavours to promote the interests of the Company and any Group Companies for
whom you are required to work.
	 
	2.	 	OUTSIDE INTERESTS
	 
	2.1.	 	You agree that during your employment you will not be employed, engaged, interested or
concerned in any trade, business, firm, company or organisation without the prior written
consent of your Manager. You may, however, hold (directly or through nominees including your
spouse, partner or minor children) by way of bona fide personal investment up to 3% of the
issued shares, debentures or other securities of any company whose shares are listed on a
recognised investment exchange or dealt in the Alternative Investment Market.
	 
	2.2.	 	During your employment you will, and will procure that your spouse and minor children will
comply with all applicable rules of law, any recognised investment exchange regulations or any
Company policy, code or regulations in relation to dealings in shares, debentures or other
securities of the Company and any Group Company or relating to any unpublished price sensitive
information affecting the securities of the Company, any Group Company or any other company.

 

 

	3.   	 	FREEDOM TO TAKE UP EMPLOYMENT WITH THE COMPANY

You warrant that any notice period you are required to give or to serve with a previous employer
has expired and that, by entering into this contract or performing any of your duties for the
Company, you will not be in breach of any other contract, agreement or obligation binding on you.

	4.   	 	PERIOD OF CONTINUOUS EMPLOYMENT:

Your employment will commence on a date to be confirmed. No employment with a previous employer
counts as part of your period of continuous employment with the Company.

	5.	 	CONDITIONS OF EMPLOYMENT
	 
	5.1.	 	Your employment with the Company is conditional on:

	 	(a)	 	receipt by the Company of at least two references in relation to you which the
Company considers satisfactory, one of which must be from your last employer; and

	 	(b)	 	your producing such documentation as the Company may reasonably require to
establish your right to work lawfully in the United Kingdom.

	5.2.	 	Should you fail to comply with either of these conditions, any offer of employment by the
Company may be withdrawn without notice and if already accepted, the Company may terminate
your employment (notwithstanding any other term of this Agreement) without notice or a payment
in lieu of notice during the first month of employment or thereafter by giving you the minimum
period of notice required by statute.
	 
	7.	 	TERM
	 
	 	 	You are entitled to receive from the company six months notice during the first year of your
employment for “no just cause”; thereafter you are entitled to receive three months notice
of termination. In the event of the Company choosing to terminate your employment within
the first twelve months you will be entitled to receive six months pay in lieu of notice and
a six month severance payment. Should this occur within twenty four months of employment
you will be entitled to receive three months pay in lieu of notice and a three month
severance payment.
	 
	7.1.	 	You may terminate your employment at any time by giving to the Company six months notice
during the first year of your employment, followed by three months notice thereafter.
	 
	7.2.	 	Notwithstanding any other term of this Agreement, the Company may terminate your employment
without notice and without any payment in lieu of notice in the event that you are guilty of
gross misconduct, gross negligence or breach a fundamental term of this Agreement.

2

 

	7.3.	 	The Company may in its absolute discretion choose to terminate your employment immediately at
any time and make you a payment in lieu of notice equivalent to your basic salary over any
unexpired period of notice due under clause 7 of this Agreement, subject to deductions for
income tax, employee’s national insurance contributions and other deductions required by law.
The Company is not under an obligation to make a payment in lieu of notice and if it fails to
do so any claim you have will be for damages and will be subject to your duty to take
reasonable steps to mitigate your loss.
	 
	7.4.	 	The Company’s contractual retirement age and your normal retirement age is 60. Your
employment will therefore come to an end automatically and without the need for notice on the
date of your 60th birthday.
	 
	8.	 	PLACE OF WORK
	 
	8.1.	 	Your normal place of work will initially be 90 Milton Park, Abingdon, Oxfordshire OX14 4RY.
You agree that the Company may change your normal place of work, temporarily or permanently,
to anywhere within the United Kingdom, even if this requires you to relocate your home. If
you are required to move your home, the Company will consider relocation assistance.
	 
	8.2.	 	You may be required to travel and undertake your duties anywhere in the world, provided that
you shall not be required to work outside the United Kingdom for periods in excess of one
month at a time.
	 
	9.	 	SALARY
	 
	9.1.	 	You will be paid a basic salary at a rate of £130,000 (One Hundred and Thirty Thousand
Pounds) per annum, subject to deductions for income tax, employee’s national insurance
contributions and any other deductions required or permitted by law. Your salary will accrue
on a day-to-day basis and will be payable monthly in arrears on or about the 24th day of each
month. Your salary is paid in respect of your duties both for the Company and any other Group
Company for whom you are required to work.
	 
	 	 	You will also receive financial protection of six months salary plus pay in lieu of notice
(six months) for your first year of service and three months salary plus pay in lieu of
notice (three months) thereafter.
	 
	10.	 	RELOCATION ALLOWANCE

You are eligible for relocation at a rate of £50,000 in accordance with, and subject to, the
Company Relocation Policy. Reimbursement of relocation expenses is conditional upon you remaining
in The Company’s service for at least 24 months after the date of the start of the relocation
process. If you leave The Company within 24 months of The Company making the first payment to you
under the Company Relocation Policy, you will be required to repay any monies paid to you by The
Company and The Company will be entitled to offset any payments due to you on termination against
the whole or part of the debt.

3

 

You will see from the attached Relocation Policy that you may use the services of Cendent, our
relocation support group. We would be happy to arrange a pre-acceptance visit to the UK for you
and your family for which there will be no clawback. This will include return economy flights,
three nights accommodation (including breakfast, lunch and an evening meal) in a hotel and an
organised “tour” of the area by Cendent.

	11.   	 	EXPENSES

You will be reimbursed for all expenses reasonably and properly incurred by you on the business of
the Company or the Group provided you produce to the Company such receipts, voucher or other
evidence of actual payment of the expenses concerned as the Company may reasonably require from
time to time.

	12.	 	PENSION AND OTHER BENEFITS
	 
	12.1.	 	Bonus. Subject to the successful achievement by you of the personal objectives set
for you by your Manager and the Company’s performance against targets, you may, at the
absolute discretion of the Board, be awarded a bonus under any bonus scheme which applies to
you from time to time. Whether each objective has been successfully achieved, whether to
award any bonus to you and the amount of any bonus awarded to you are matters within the
absolute discretion of the Board. All of the Company’s bonus schemes may be withdrawn or
varied from time to time at the discretion of the Board. Your objectives and the Company’s
targets are likely to vary from year to year. The fact that a bonus is paid in one year is no
guarantee that a bonus will be paid in subsequent years. As the bonus is intended to
incentivise employees to remain in the employment of the Company, payment of any bonus is
conditional on your remaining in the employment of the Company and not having given to the
Company or been given by the Company notice to terminate your employment as at the date bonus
is payable to you under the scheme rules. Bonuses are subject to deductions for income tax,
employee’s national insurance contributions and other deductions required by law.
	 
	12.2.	 	Pension. You are entitled to become a member of the Company’s money-purchase
pension scheme subject to and in accordance with the rules thereof. You may contribute
between 2% and 15% of your basic annual salary each year to the scheme. Subject to Inland
Revenue rules and the rules of the scheme in force from time to time (which the Company may
vary in its discretion), the Company will match your personal contribution to the scheme each
year and make an additional Company contribution to the scheme for your benefit equivalent to
3% of your basic annual salary each year provided that the Company’s maximum annual
contribution to the scheme for your benefit shall be 9% of your basic annual salary. The
Company reserves the right to withdraw this benefit at any time or to vary the rules
applicable to the scheme or the level of Company contributions to the scheme.
	 
	12.3.	 	Car Allowance. The Company will pay you a car allowance of £750 per month which
will be paid on or before the last day of each month, subject to deductions for income tax,
employee’s national insurance contributions and other deductions required by law. You

4

 

	   	 	shall at all times be required to have access to and use of an appropriate motor vehicle for
the proper performance of your duties under this Agreement.

	 	 	In addition, the Company will pay for the cost of car hire for the first two months of your
service with Bookham Technology.
	 
	12.4.	 	Private Medical Expenses Insurance. The Company shall bear the cost of membership
for you, your spouse or partner and children (up to the age of 21 or 25 if in full time
education) of a private medical insurance scheme with such reputable medical expenses
insurance provider as the Company shall determine from time to time, subject to the Company
being able to secure such cover at rates which it determines to be reasonable. The Company
reserves the right to withdraw this benefit at any time or to vary the terms or level of cover
at any time. This is a benefit in respect of which you will be liable to pay income tax.
	 
	12.5.	 	Permanent Health Insurance. The Company shall bear the cost of permanent health
insurance cover for you subject to and in accordance with the rules and terms of such
insurance scheme as may be in force from time to time. The Company reserves the right to
withdraw this benefit at any time or to vary the terms or level of benefits provided by this
cover at any time.
	 
	12.6.	 	Life Assurance. The Company shall bear the cost of membership of an Inland Revenue
approved life assurance scheme for you, subject to and in accordance with the rules and terms
of such life assurance scheme as may be in force from time to time. This scheme provides
benefits on death in service of 4 times your basic annual salary, which is paid in accordance
with the rules of the scheme in force. The Company reserves the right to withdraw this
benefit at any time or to vary the terms or level of cover at any time.
	 
	13.	 	HOURS OF WORK
	 
	13.1.	 	Your normal office hours are 9.00am to 5.30pm Monday to Friday, with a lunch break each
working day of half an hour. The Company may require you to work such additional hours as the
Company may determine to be necessary for the proper and efficient performance of your duties.
You shall not be entitled to any overtime or other payments in relation to such additional
hours. You agree that the limit on average weekly working time set out in Regulation 4(1) of
the Working Time Regulations 1998 will not apply to you, although you may withdraw your
consent on giving the Company three months prior written notice.
	 
	14.	 	HOLIDAYS
	 
	14.1.	 	The Company’s holiday year runs from 1 January to 31 December.
	 
	14.2.	 	You are entitled to 23 days paid holiday entitlement in each holiday year in addition to
English public holidays. You are required to save three days holiday each year which shall be
taken by you on such days over the Christmas period as the Company may determine, unless you
are notified otherwise by the Board in any year.

5

 

	14.3.	 	All holiday must be taken at times authorised by your Manager at least two weeks in advance.
For the avoidance of doubt Regulations 15(1) to 15(4) of the Working Time Regulations 1998
(dealing with dates when leave is taken) will not apply to your employment.
	 
	14.4.	 	You may not, save with the prior permission of your Manager, carry forward any unused part
of your holiday entitlement for a given holiday year into the subsequent holiday year.
	 
	14.5.	 	For the holiday year during which your employment commences or terminates, your holiday
entitlement will be calculated on a pro rata basis according to the number of weeks of
completed service in such year.

	14.6.	 	On the termination of your employment with the Company, the Company may at its discretion:

	 	(a)	 	require you to take, during your notice period, any or all holiday entitlement
which will have accrued to you by the date on which your employment terminates; or

	 	(b)	 	pay you in lieu of your accrued but unused holiday entitlement, save that, if
you are dismissed summarily for gross misconduct, the Company shall be under no
obligation to pay you in respect of accrued but untaken holiday entitlement in excess
of any minimum holiday entitlement required by law. All pay in lieu of holiday
entitlement will be subject to deductions for income tax, employee’s national insurance
contributions and other deductions required by law; or

	 	(c)	 	deduct an amount equal to salary paid to you in respect of holiday taken by you
but not accrued by the date on which your employment terminates from any salary or
payment in lieu of notice due to you or, in the event that this is insufficient,
require you to repay such an amount to the Company.

	15.	 	DEDUCTIONS FROM WAGES

Without prejudice to any other rights open to the Company, you agree that the Company may deduct
from any wages due to you, (including Company sick pay and any payment in lieu of notice or holiday
entitlement) sums representing the value of any Company property lost by you; the cost of repairing
any Company property damaged by you or damaged as a consequence of negligence on your part; the
amount of any outstanding loans or advances made to you by the Company; any other sums owing from
you to the Company; where you have been unable to perform your duties under this Agreement due to
an accident caused by a third party, an amount equal to the amount of any damages you recover from
a third party in respect of that accident capped at an amount equal to the salary and benefits you
have received from the Company in respect of any period of absence to which the damages relate; any
overpayment of salary or expenses or payment made to you by mistake or through misrepresentation;
and any other sums authorised to be deducted by Section 13 of the Employment Rights Act 1996.

6

 

	16.   	 	DATA PROTECTION

In order to keep and maintain any records relating to your employment under this Agreement, it will
be necessary for the Company to record, keep and process personal data relating to you on computer
and in hard copy form. (Examples of personal data include details of your disciplinary record, any
grievances raised by you and the contents of your personnel file, together with any sensitive
personal data held by the Company such as your religious beliefs, your ethnic or racial origin and
information relating to any physical disability or pregnancy). Further in order to pay your salary
and offer you the other benefits to which you may be entitled, the Company may also need to obtain
from you details of your bank account and other financial information. To the extent that it is
reasonably necessary in connection with your employment and the Company’s responsibilities as an
employer, this data may be disclosed to others, including other employees of the Company or any
Group Company, the Company’s professional advisers, the Inland Revenue or other taxation authority,
the police and other regulatory authorities. You hereby consent to the recording, processing, use
and disclosure by the Company of personal data relating to you as set out above, including the
recording, processing, use and disclosure of your sensitive personal data to the extent required by
reason of your employment or by law and the transmission of such data within or outside the
European Union.

	17.	 	SICKNESS OR INJURY
	 
	17.1.	 	If you are absent from work due to sickness, injury or accident you must notify the Company
as soon as possible and in any event before 10.00 am on the first working day of absence.
	 
	17.2.	 	If you are absent from work for less than 7 days you must complete a self certification form
setting out the nature of your illness or incapacity on your return to work. If your absence
continues for more than 7 days you will, on the eighth day of such absence, submit a doctor’s
certificate to the Company and continue to submit promptly to the Company doctor’s
certificates covering any further period of absence.
	 
	17.3.	 	Provided you comply with the notification and certification procedure set out above, the
Company will pay you during such absence the Company will pay your normal basic salary for up
to one consecutive calendar month of absence in a calendar year, and then pay you half your
normal basic salary for up to two further consecutive calendar months during a calendar year.
	 
	 	 	Thereafter, any Company sick pay is entirely at the discretion of the Company, provided that
you shall be entitled to statutory sick pay in accordance with the rules of the statutory
sick pay scheme, subject to the Company’s right to terminate your employment under this
Agreement.
	 
	17.4.	 	Failure to comply with the certification requirements set out above may result in your
forfeiting your entitlement to be paid during periods of absence and in your facing
disciplinary action.
	 
	17.5.	 	Any Company sick pay shall include any statutory sick pay payable to you under the
prevailing rules of the statutory sick pay scheme. The Company may deduct from

7

 

	 	 	Company sick pay an amount or amounts equal to any state benefit to which you are entitled
or any payments made to you or for which you are eligible under any permanent health
insurance scheme.
	 
	17.6.	 	The Company reserves the right to require you to undergo a medical examination by the
Company’s doctor or an independent medical practitioner at any time during a period of
absence. You agree that the doctor or independent medical practitioner may disclose to the
Company the results of the examination and discuss with the Company and its professional
advisers any matters arising from the examination as might impair you from properly
discharging your duties. You also authorise your own doctor to provide the Company’s doctor
and/or independent medical practitioner with any relevant extracts from your medical notes.
	 
	18.	 	CONFIDENTIALITY
	 
	18.1.	 	During the course of your employment you will have access to and become aware of information
which is confidential to the Company. You undertake that you will not, save in the proper
performance of your duties for the Company, disclose to any person, firm, company or
organisation or use (whether for your own benefit or for the benefit of any person, firm,
company or organisation) any of the trade secrets or other confidential information of or
relating to (a) the Company; (b) any Group Company; (c) any client or customer of the Company;
(d) any person, firm, company or organisation with whom or which the Company is involved in
any kind of business venture or partnership; or (e) any other third party to which the Company
or any Group Company owes a duty or confidentiality. Further, you agree use your best
endeavours to prevent the unauthorised publication or disclosure of any such trade secrets or
confidential information.
	 
	18.2.	 	The restriction in clause 18.1 shall continue to apply after the termination of your
employment without limit in point of time, but shall cease to apply to information ordered to
be disclosed by a Court or Tribunal of competent jurisdiction or to information which becomes
available to the public generally (other than by reason of your breaching this clause).
Nothing in this clause 18 will prevent you making a “protected disclosure” within the meaning
of the Public Interest Disclosure Act 1998.
	 
	18.3.	 	For the purposes of this Agreement confidential information shall include, but shall not be
limited to:

	 	(a)	 	corporate and marketing strategy and plans and business development plans;
	 
	 	(b)	 	budgets, management accounts, bank account details and other confidential
financial data;
	 
	 	(c)	 	business sales and marketing methods;
	 
	 	(d)	 	all techniques and processes used in relation to products and services;
	 
	 	(e)	 	details of products and services being developed, including research and
development reports, details of the Company’s computer technology, applications

8

 

	 	 	 	and systems, computer code and algorithms developed or used, information relating to
proprietary computer hardware or software (including updates) and details of
intellectual property solutions;
	 
	 	(f)	 	methods, procedures and information relating to the operation of its business,
including details of salaries, bonuses, commissions and other employment terms
applicable;
	 
	 	(g)	 	the names, addresses and contact details of any customers or Prospective
Customers, including customer lists in whatever medium this information is stored and
details in relation to the requirements of those customers or the potential
requirements of Prospective Customers for any products or services. Without prejudice
to the generality of the foregoing, information provided by visitors to and users of
any of its web sites,
	 
	 	(h)	 	the terms of business with its advertisers, customers and suppliers, including
any pricing policy adopted and the terms of any partnership, joint venture or other
form of commercial co-operation or agreement entered into with any third party;
	 
	 	(i)	 	software and technical information necessary for the development, maintenance
or operation of any of any website and the source and object code of each website; and
	 
	 	(j)	 	any other information in respect of which it is bound by an obligation of
confidence owed to a third party.

	18.4.	 	Your undertaking to the Company in clause 18.1 is given to the Company for itself and as
trustee for each Group Company.
	 
	19.	 	DELIVERY UP OF THE COMPANY’S PROPERTY
	 
	19.1.	 	You may not save in the proper performance of your duties or with the Company’s permission,
remove any property belonging to the Company or any Group Company, or relating to the affairs
of the Company or any Group Company, from the Company’s or any Group Company’s premises, or
make any copies of documents or records relating to the Company’s or any Group Company’s
affairs.
	 
	19.2.	 	Upon the Company’s request at any time, and in any event on the termination of your
employment, you will immediately deliver up to the Company or its authorised representative,
any plans, keys, mobile telephone, security passes, credit cards, customer lists, price lists,
equipment, documents, records, papers, computer disks, tapes or other computer hardware or
software (together with all copies of the same), and all property of whatever nature in your
possession or control which belongs to the Company or any Group Company or relates to its or
their business affairs. You will at the Company’s request furnish the Company with a written
statement confirming that you have complied with this obligation.

9

 

	19.3.	 	If you have any information relating to the Company or the Group or work you have carried
out for the Company or any Group Company which is stored on a computer or laptop computer
which computer or lap top does not belong to the Company, this must be disclosed to the
Company and the Company shall be entitled to down load the information and/or supervise its
deletion from the computer or laptop concerned.
	 
	20.	 	COPYRIGHT AND DESIGN RIGHTS
	 
	20.1.	 	You will promptly disclose to the Company all works in which copyright or design rights may
exist which you make or originate either by yourself or jointly with other people during your
employment.
	 
	20.2.	 	Any copyright work or design created by you in the normal course of your employment or in
the course of carrying out duties specifically assigned to you, which relate to the affairs of
the Company, shall be the property of the Company whether or not the work was made at the
direction of the Company, or was intended for the Company and the copyright in it and the
rights in any design shall belong absolutely to the Company throughout all jurisdictions and
in all parts of the world, together with all rights of registration, extensions and renewal
(where relevant).
	 
	20.3.	 	To the extent that such copyright or design rights are not otherwise vested in the Company,
you hereby assign the same to the Company, together with all past and future rights to action
relating thereto.
	 
	20.4.	 	You recognise and accept that the Company may edit, copy, add to, take from, adapt, alter
and translate the product of your services in exercising the rights assigned under clause
20.3.
	 
	20.5.	 	To the full extent permitted by law, you irrevocably and unconditionally waive any provision
of law known as “moral rights” including any moral rights you may otherwise have under
sections 77 to 85 inclusive of the Copyright Designs and Patents Act 1988 in relation to the
rights referred to at clause 20.2.
	 
	20.6.	 	You agree that you will at the Company’s request and expense, execute such further documents
or deeds and do all things necessary or reasonably required to confirm and substantiate the
rights of the Company under this clause 20 and despite the termination of this Agreement for
any reason.
	 
	20.7.	 	You agree that you will not at any time make use of or exploit the Company’s property, trade
marks, service marks, documents or materials in which the Company owns the copyright or the
design rights for any purpose which has not been authorised by the Company.
	 
	21.	 	INVENTIONS
	 
	21.1.	 	It shall be part of your normal duties at all times to consider in what manner and by what
new methods or devices, products, services, processes, equipment or systems of the Company and
each Group Company might be improved, and promptly to give to the

10

 

	 	 	Board full details of any invention, discovery, design, improvement or other matter or work
whatsoever in relation thereto (“the Inventions”) which you may from time to time make or
discover during your employment, and to further the interests of the Company in relation to
the same. You hereby acknowledge and agree that the sole ownership of the Inventions and
all proprietary rights therein discovered or made by you (whether alone or jointly with
others) at any time during your employment shall (subject to any contrary provisions of the
Patents Act 1977 and the Copyright Designs and Patents Act 1988 and to any rights of a joint
inventor thereof) belong free of charge and exclusively to the Company as it may direct.
	 
	21.2.	 	All worldwide copyright and design rights in all the Inventions shall be and remain the
property of the Company and the provisions of clause 20 above shall apply in relation to the
same.
	 
	21.3.	 	You agree that you will, at any time during your employment or thereafter, at the Company’s
expense, do all such acts and things and execute such documents (including without limitation
making application for letters patent) as the Company may reasonably request in order to vest
effectually any Invention (whether owned by the Company in accordance with this clause 21 or
owned by you) and any protection as to ownership or use (in any part of the world) of the
same, in the Company or any Group Company, or as the Company may direct, jointly if necessary
with any joint inventor thereof, and you hereby irrevocably appoint the Company for these
purposes to be your attorney in your name and on your behalf to execute such acts and things
and execute any such documents as set out above.
	 
	21.4.	 	You agree that you will not knowingly do or omit to do anything which will or may have the
result of imperilling any such protection aforesaid or any application for such protection.
	 
	22.	 	GARDEN LEAVE

The Company shall be under no obligation to provide you with work during any period of notice to
terminate your employment (or any part thereof), whether given by the Company or by you. During
such period the Company may require you: (a) to carry out different duties from your normal
duties, whether or not this occasions a loss of status; (b) to cease carrying out your duties
altogether; (c) not to attend work and may exclude you from any premises of the Company or any
Group Company; and/or (d) not to have any business dealings or contact with the Company’s
employees, suppliers, advertisers, customers, Prospective Customers and agents. You will continue
to receive your salary and all contractual benefits provided by your employment. During such
period of notice, you may not be engaged or employed by or take up any office in any other company,
firm, business or organisation or trade on your own account or enter into any partnership without
the prior written permission of the Board.

11

 

	23.   	 	SUSPENSION

The Company may at any time suspend you on full pay pending the outcome of a disciplinary
investigation or for health reasons. Whilst you are suspended, the Company may impose the same
conditions as apply to garden leave under clause 22 above.

	24.   	 	RESTRICTIONS AFTER TERMINATION OF EMPLOYMENT

	24.1.	 	You agree that you will not, without the prior written permission of the Board, during your
employment or for a period of 6 months following the termination of your employment (less any
period you spend on garden leave pursuant to clause 22), whether on your own behalf or on
behalf of any individual, company, firm, business or other organisation, directly or
indirectly:

	 	(a)	 	in connection with the carrying on of any business which competes with any
business of the Company or any Group Company with which business you were involved in
the period of 12 months prior to the termination of your employment, solicit or entice
away from the Company or any Group Company the business or custom of any customer or
Prospective Customer with whom you had business dealings on behalf of the Company or
any Group Company in the course of the period of 12 months prior to the termination of
your employment or about which customer or Prospective Customer you are privy to
confidential information at the date your employment terminates; or
	 
	 	(b)	 	in connection with the carrying on of any business which competes with any
business of the Company or any Group Company with which business you were involved in
the period of 12 months prior to the termination of your employment, have business
dealings or contract with any customer or Prospective Customer of the Company or any
Group Company with which customer or Prospective Customer you had business dealings on
behalf of the Company or any Group Company in the course of the period of 12 months
prior to the termination of your employment or about which customer or Prospective
Customer you are privy to confidential information at the date your employment
terminates; or.
	 
	 	(c)	 	seek to entice away from the Company or any Group Company any person employed
or engaged by the Company or any Group Company as or carrying out the functions of a
director, vice president, manager or any other person acting in a sales, research and
development or technical capacity at the date your employment terminates with whom you
had material contact in the period of 12 months prior to the termination of your
employment with the Company provided that this restriction shall apply regardless of
whether the solicitation involves a breach of contract on the part of the director or
employee concerned; or
	 
	 	(d)	 	employ or engage or offer to employ or engage any person employed or engaged by
the Company any Group Company as or carrying out the functions of a director, vice
president, manager or any other person acting in a sales, research and development or
technical capacity at the date your employment terminates

12

 

	 	 	 	with whom you had dealings in the last 12 months of your employment with the Company
provided that this restriction shall apply regardless of whether the employment
involves a breach of contract on the part of the director or employee concerned; or
	 
	 	(e)	 	endeavour to entice away from the Company or in any way seek to affect the
terms of business on which the Company deals with any person, firm, company or
organisation whom or which supplied goods or services to the Company during the period
of 12 months prior to the termination of your employment.

	24.2.	 	You agree that you will not, without the prior written permission of the Board, for a period
of 6 months following the termination of your employment with the Company (less any period you
spend on garden leave pursuant to clause 22), be engaged or employed in the Restricted Area by
or otherwise involved or interested in any company, firm, organisation or business which
competes in the Restricted Area with any business of the Company or any Group Company with
which business you are involved in the last 12 months of your employment under this Agreement.
In the event that you serve on the Company a written request for permission to be employed or
engaged by any company, firm, organisation or business and the Company refuses to provide its
permission, then the Company will pay you at a rate equivalent to one twelfth of your basic
annual salary under this Agreement as at the date your employment with the Company terminates
for each period of one month following the date on which your employment with the Company
terminates during which period you are restricted from commencing such employment or
engagement by reason of this clause 24.2 subject to:

	 	(a)	 	you providing the Company, in any such request made by you, with: the name and
address of the company, firm, organisation or business which has offered to employ or
engage you; details of the job title and duties associated with the position offered to
you by such company, firm, organisation or business; and a copy of any written offer of
employment or engagement made to you by such company, firm, organisation or business.
	 
	 	(b)	 	you complying in full with the terms of clause 24; and
	 
	 	(c)	 	the deduction from any sum prima facie due to you under this clause 24.2 of any
remuneration, salary, fees or other income earned by you arising from or in relation to
any employment or engagement undertaken by you during such period (but not including
any income arising from any employment or engagement which you had commenced at least
six months prior to the date on which your employment terminates provided that you had
permission from your Manager to undertake such employment or engagement pursuant to
clause 2.1 of this Agreement).

	 	 	The payment due to you will be paid in monthly instalments in arrears within 14 days of you
confirming to the Board in writing the amount of remuneration, salary, fees or other income
earned by you arising from or in relation to any employment or engagement undertaken by you
during the period of one month to which the instalment relates.

13

 

	24.3.	 	Each of the sub-clauses contained in clause 24 constitutes an entirely separate and
independent covenant. If any restriction is held to be invalid or unenforceable by a court of
competent jurisdiction, it is intended and understood by the parties that such invalidity or
unenforceability will not affect the remaining restrictions or the validity of the rest of the
Agreement and that if any such restriction would be valid if some part thereof were deleted,
such restrictions shall apply with such modification as may be necessary to make them
effective.

	24.4.	 	You agree that if you receive an offer of employment, consultancy, directorship or other
office or partnership during the continuance in force of any of the above, you will prior to
acceptance of an offer, provide the party making the offer with copies of this clause and
details of your notice period, the restrictions on your use and disclosure of confidential
information and the clauses dealing with copyright and inventions. Further, within 48 hours
of receiving the aforementioned offer you will notify the Company of the identity of the party
making the offer and the terms of the offer.

	24.5.	 	You acknowledge that:

	 	(a)	 	each of the restrictions in clause 24 goes no further than is necessary to
protect the legitimate business interests of the Company and any Group Company; and
	 
	 	(b)	 	the Company is entering into this Agreement not only for itself but as trustee
for each Group Company and with the intention that the Company and/or any Group Company
will be entitled to seek the protection of and enforce each of its restrictions
directly against you. If requested to do so by the Company however, you will at any
time enter into like restrictions as those contained in this clause 24 (mutatis
mutandis) with any other Group Company.

	24.6.	 	Nothing in this clause 24 shall prohibit you from holding the investments and interests set
out in clause 2.1 above.

	24.7.	 	Following the date your employment terminates, you will not:

	 	(a)	 	represent yourself as being in any way connected with the business of the
Company or any Group Company (except to the extent agreed by such Company):
	 
	 	(b)	 	represent, promote or advertise or refer to your previous connection with the
Company or any Group Company in such a way as to utilise any of their goodwill
	 
	 	(c)	 	carry on, cause or permit to be carried on any business under or using any
name, trade mark, service mark, style, logo, get-up or image which is or has been used
by the Company or any Group Company, or which in the reasonable opinion of the Board,
is calculated to cause confusion with such a name, trade mark, service mark, style,
logo, get-up or image or infer a connection with the Company or any Group Company.

14

 

	25.   	 	DISCIPLINARY AND GRIEVANCE PROCEDURES

A copy of the Company’s disciplinary and grievance procedures are available from Human Resources.
These policies do not form part of your contract of employment and may be varied by the Company at
any time.

	26.   	 	COLLECTIVE AGREEMENTS

There are no collective Agreements which directly affect your terms and conditions of employment.

	27.   	 	SECURITY

	27.1.	 	All communications, whether by telephone, email, fax, or any other means, which are
transmitted, undertaken or received using Company property or on Company premises will be
treated by the Company as work related and are subject to interception, recording and
monitoring without further notice. You should not regard any such communications as private.
	 
	27.2.	 	Interception, recording and monitoring of communications is intended to protect the
Company’s business interests, for example, but without limitation, for the purposes of quality
control, security of communication and IT systems, record-keeping and evidential requirements,
detection and prevention of criminal activity or misconduct and to assist the Company to
comply with relevant legal requirements. Such interception, recording and monitoring will not
be undertaken for prurient interest.
	 
	27.3.	 	Intercepted communications may be used as evidence in disciplinary or legal proceedings,
including in any such action against you.
	 
	27.4.	 	By transmitting, undertaking or receiving communication using Company property or on Company
premises you consent to the above terms.
	 
	28.	 	ENTIRE AGREEMENT
	 
	28.1.	 	This Agreement sets out the entire agreement between the Company and you at the date of this
Agreement in relation to your terms and conditions of employment and is in substitution for
and supersedes any previous contract of employment between the Company and you, which shall be
deemed to have been terminated by mutual consent and without giving rise to claims against the
Company. You represent and warrant that you are not entering into this Agreement in reliance
on any representation not expressly set out herein.
	 
	28.2.	 	The termination of this Agreement howsoever arising shall not affect any of the provisions
of this Agreement which are expressed to operate or have effect or are capable of operation or
effect after such termination.

15

 

	29.   	 	NOTICES

Any notice you are required to give under this Agreement should be given by you to your Manager.
Any notice the Company is required to give you should be handed to you or delivered or posted by
special delivery post to your last notified address. These notices will be deemed to have been
given on receipt if handed to you or your Manager, when delivered if delivered or posted to your
last notified address.

	30.   	 	THIRD PARTIES

This Agreement constitutes an agreement solely between the Company and you and, save where
otherwise provided, nothing in this contract confers or purports to confer on a third party any
benefit or any right to enforce a term of this contract for the purposes of the Contracts (Rights
of Third Parties) Act 1999.

	31.	 	INTERPRETATION
	 
	31.1.	 	Any reference in this Agreement to:-
	 
	31.2.	 	any Act or delegated legislation includes any statutory modification or re-enactment of it
or the provision referred to;
	 
	31.3.	 	“Board” shall mean the Board of Directors of the Company from time to time or any person or
any committee of the Board duly appointed by it;
	 
	31.4.	 	“Group Company” means a company which from time to time is a subsidiary or a holding company
of the Company or a subsidiary of such holding company (where the teems “subsidiary” and
“holding company” have the meanings attributed to them by section 736 of the Companies Act
1985);
	 
	31.5.	 	The words “include” and “including” and “in particular” shall be construed as being by way
of illustration only and shall not limit the generality of the preceding words;
	 
	31.6.	 	“Prospective Customer” means any person with whom the Company (or any Group Company) is in
negotiations or is tendering for the supply of its goods and services; and
	 
	31.7.	 	“Restricted Area” means the United Kingdom and other geographical area in relation to which
you carried out your duties for the Company or in respect of which you were responsible during
(in both cases) the period of 12 months immediately preceding the termination of your
employment with the Company.
	 
	32.	 	GOVERNING LAW

Your terms of employment with the Company are governed by English law and the parties submit to the
exclusive jurisdiction of the English Courts. The Company may however enforce the Agreement in any
other courts of competent jurisdiction.

16

 

IN WITNESS WHEREOF this Agreement has been executed and delivered as a deed on the date set out
above.

	 	 	 
	EXECUTED and DELIVERED

	 	/s/ Giorgio Anania
	as a DEED by

	 	Giorgio Anania

	BOOKHAM TECHNOLOGY PLC

	 	 
	acting by its attorney Giorgio Anania in the

presence of:-
	 	 
	 
	 	 
	Signature of witness:

	 	 
	 
	 	 
	Print name of witness:

	 	[                    ]

	 
	 	 
	Print address of witness:

	 	Bookham Technology plc

Milton
	 
	 	 
	Print occupation of witness:
	 	 
	 
	 	 
	EXECUTED and DELIVERED

	 	/s/ Jim Haynes
	as a DEED by:

	 	 

	 
	 	 
	in the presence of:

	 	 

	 
	 	 
	Signature of witness:

	 	 
	 
	 	 
	Print name of witness:

	 	 
	 
	 	 
	Print address of witness:

	 	 
	 
	 	 
	Print occupation of witness:

	 	 

17

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