Document:

THIRD AMENDMENT TO CREDIT AND SECURITY AGREEMENT

 

THIS THIRD AMENDMENT TO CREDIT AND SECURITY AGREEMENT (this "Amendment") is made as of December 17, 2009, by and between INTL GLOBAL CURRENCIES LIMITED, a corporation organized under the laws of the United Kingdom (the "Borrower") and BANK OF AMERICA, N.A., a national banking association (the "Lender").

Recitals

Pursuant to that certain Credit and Security Agreement dated as of December 8, 2006  between the Lender and the Borrower, as amended by that certain First Amendment to Credit and Security Agreement dated as of February 29, 2008 and that certain Second Amendment to Credit and Security Agreement dated as of July 29, 2008 (as the same may from time to time be amended, restated, supplemented, or otherwise modified, the "Credit Agreement"), the Lender established a revolving credit facility pursuant to which the Lender agreed to make advances to the Borrower from time to time in an aggregate principal amount not to exceed Twenty Five Million Dollars ($25,000,000) at any one time outstanding.   

The Borrower has asked the Lender to extend the maturity date thereof and the Lender has agreed to do so, provided the parties hereto execute and deliver this Amendment, among other things.

Agreement

NOW THEREFORE, in consideration of the premises and in order to induce the Lender to amend the Credit Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1.Terms Defined.  Unless otherwise defined or stated in this Amendment, each capitalized term used in this Amendment has the meaning given to such term in the Credit Agreement (as amended by this Amendment).

2.Amendments to Credit Agreement.  The Credit Agreement is, effective as of the date hereof, hereby amended as follows:

The following definitions set forth in Section 1.1. of the Credit Agreement are hereby amended and restated to read as follows: 

"Applicable Margin" shall mean 3.0% per annum, or 300 basis points.  

"BBA Libor Daily Floating Rate" means, at any time, a fluctuating rate of interest equal to the rate per annum equal to the British Bankers Association LIBOR Rate ("BBA LIBOR"), as published by Reuters (or other commercially available source providing quotations of BBA LIBOR as selected by the Lender from time to time) as determined as of each Interest Rate Change Date, for U.S. Dollar deposits (for delivery on the first day of such interest period) with a one month term, as adjusted from time to time in the Lender's sole discretion for reserve requirements, deposit insurance assessment rates and other regulatory costs.  If such rate is not available at such time for any reason, then the rate for that interest period will be determined by such alternate method as reasonably selected by the Lender. 

 "Libor-Based Rate" means a per annum rate of interest equal at all times to the sum of the BBA Libor Daily Floating Rate plus the Applicable Margin. The Libor-Based Rate shall change immediately and contemporaneously with each change in the BBA Libor Daily Floating Rate.

 "London Banking Day" means a day on which banks in London are open for business and dealing in offshore dollars.

 "Revolving Credit Expiration Date" shall mean December 31, 2010, or such later date as to which the Lender shall, in its discretion, agree to extend the Revolving Credit Expiration Date.

"Unused Commitment Fee" shall mean the fee paid by the Borrowers to the Lender pursuant to Section 1.2(i).

"Unused Commitment Fee Percentage" shall mean twenty-five (25) basis points.  

Section 1.2 of the Credit Agreement is hereby amended to add the following new subsection 1.2(i) at the end thereof:

(i)Unused Commitment Fee.  During the period from the date hereof until the earlier of the Revolving Credit Expiration Date or the date on which the Revolving Credit Facility is terminated pursuant to the provisions hereof, the Borrower shall pay to the Lender an Unused Commitment Fee in a per annum amount equal to the Unused Commitment Fee Percentage times the average daily unused portion of the Revolving Credit Amount.  Such Unused Commitment Fee shall commence to accrue on the date hereof and shall be due and payable by the Borrower quarterly, in arrears, commencing on December 31, 2009, and, on the last Business Day of each third month thereafter, and on the earlier of the Revolving Credit Expiration Date or on the date on which the Revolving Credit Facility is terminated pursuant to Section 7 hereof. 

3.Conditions Precedent.  The effectiveness of this Amendment is subject to the satisfaction of each of the following conditions precedent, all of which conditions precedent must be satisfied on or before the date of this Amendment:

(a)The Lender shall have received this Amendment executed by the parties hereto, and all fees and expenses called for herein or incurred in connection with the preparation and execution of this Amendment including, without limitation all of the attorneys' fees, costs and expenses incurred by the Lender in connection herewith; 

(b)The Lender shall have received the fully executed Confirmation of Continuing and Unconditional Guaranty of IAHC; and

(c)No Default or Event of Default shall have occurred and be continuing.

4.Representations and Warranties.  In order to induce the Lender to enter into this Amendment, the Borrower hereby represent and warrant to the Lender that as of the date hereof (a) the execution, delivery and performance of this Amendment has been authorized by all requisite corporate action on the part of the Borrower and will not violate any of the Borrower's organizational documents or bylaws; (b) no Default of Event or Default exists under the provisions of the Financing Documents which has not been waived by the Lender in writing, (c) all of the representations and warranties of the Borrower as set forth in the Financing Documents are true and correct on the date hereof as if the same were made on the date hereof, (d) no material adverse change has occurred in the business, financial condition, prospects or operations of the Borrower since the date of the most recent financial statements of the Borrower furnished to the Lender in accordance with the provisions of the Financing Documents, and (e) this Amendment constitutes the legal, valid and binding obligation of the Borrower, enforceable in accordance with its terms.  If any of the foregoing representations and warranties shall prove to be false, incorrect or misleading in any material respect, the Lender may, in its absolute and sole discretion, declare that a default has occurred and exists under the provisions of the Financing Documents, and the Lender shall be entitled to all of the rights and remedies set forth in the Financing Documents as the result of the occurrence of such default.

5.Ratification and No Novation.  The Borrower hereby ratifies and confirms all of its obligations, liabilities and indebtedness under the provisions of the Note, the Credit Agreement, and the other Financing Documents, as the same may be amended and modified by this Amendment.  The Lender and the Borrower agree that it is their intention that nothing herein shall be construed to extinguish, release or discharge or constitute, create or effect a novation of, or an agreement to extinguish, (a) any of the obligations, indebtedness and liabilities of the Borrower or any other party under the provisions of the Financing Documents, or (b) any negative pledge to the Lender.  The Borrower agree that all of the provisions of the Note, the Credit Agreement, and the other Financing Documents shall remain and continue in full force and effect as the same may be modified and amended by this Amendment.  In the event of any conflict between the provisions of this Amendment and the provisions of the Financing Documents, the provisions of this Amendment shall control.

6.Binding Effect.  This Amendment shall be binding upon and inure to the benefit of the Lender, the Borrower, and their respective successors and assigns.

[remainder of page left intentionally blank - signature lines follow]

 IN WITNESS WHEREOF, the parties hereto have each caused this Amendment to be executed and sealed, as of the day and year first above written.

BORROWER:

WITNESS:INTL GLOBAL CURRENCIES LIMITED

 

 

 

//Bruce Fields_________________By: //Sean M. O'Connor____________   (SEAL)                         

Bruce Fields       Printed Name: Sean M. O'Connor

      Title:  Director

LENDER:

BANK OF AMERICA, N.A.,

A national banking association

 

 

 
By: //Michael D. Brannan                    (SEAL)

Michael D. Brannan

      Senior Vice PresidentOffer Letter between Calix Networks, Inc. and Carl Russo

 Exhibit 10.8 
 

 
 November 1, 2006 
 Carl Russo 
 c/o Calix Networks, Inc. 
 1035 N. McDowell Blvd. 
 Petaluma, CA 94954 
 Dear Carl: 
 On behalf of Calix
Networks, Inc. (the “Company”), I am pleased to offer you this employment agreement to continue in the full time position of President and Chief Executive Officer of the Company. 
 The terms of your position with the Company are as set forth below: 
 1. Position. 
 a. You will continue in your role as the President and Chief Executive Officer of the Company, working out of the Company’s headquarters office in Petaluma, California. You will report to the
Company’s Board of Directors. You will continue in your role as a Director of the Company. 
 b. You agree to the best of
your ability and experience that you will at all times loyally and conscientiously perform all of the duties and obligations required of and from you pursuant to the express and implicit terms hereof, and to the reasonable satisfaction of the
Company. During the term of your employment, you further agree that you will devote all of your business time and attention to the business of the Company, the Company will be entitled to all of the benefits and profits arising from or incident to
all such work services and advice, you will not render commercial or professional services of any nature to any person or organization, whether or not for compensation, without the prior written consent of the Company’s Board of Directors, and
you will not directly or indirectly engage or participate in any business that is competitive in any manner with the business of the Company. Notwithstanding the foregoing, however, you shall be permitted to continue to serve on the boards of
directors of the companies set forth on Attachment A hereto; provided, however, that you will devote only such time to those companies as is required to properly discharge your fiduciary duties thereto and you shall, as situations allow, make
a good faith effort to resign from such boards as soon as practicable. Nothing in this letter agreement will prevent you from accepting speaking or presentation engagements in exchange for honoraria or from serving on boards of charitable
organizations, or from owning no more than one percent (1%) of the outstanding equity securities of a corporation whose stock is used on a national stock exchange. 
 2. Effective Date. Subject to fulfillment of any conditions imposed by this letter agreement, the terms of this agreement shall commence November 1, 2006 (the “Anniversary
Date”). 

 3. Proof of Right to Work. For purposes of federal immigration law, you will
be required to provide to the Company documentary evidence of your identity and eligibility for employment in the United States. Such documentation must be provided to us within three (3) business days of your date of hire, or our employment
relationship with you may be terminated. 
 4. Compensation. You will receive a base salary of $2,000.00 every two
weeks, which equates to $52,000.00 annually, on the Company’s regular payroll dates and subject to applicable tax withholding. The Compensation Committee will review your compensation on an annual basis and, based on your performance and the
Company’s performance, expects to increase your cash compensation to market levels in conjunction with the completion of an Initial Public Offering. 
 5. Stock Options. 
 a. Initial Grant. In connection
with the continuation of your employment, the Board of Directors shall grant you an option or stock purchase right to purchase 440,000 shares of the Company’s Common Stock (“Shares”) with an exercise price equal to the fair
market value on the date of the grant. This option will vest at the rate of 1/48 of the total number of Shares underlying the option per month following the grant/award date for the 48 month period thereafter; provided, however, that
in the event that (i) your employment relationship with the Company is terminated or you are voluntarily or involuntary removed as Chief Executive Officer of the Company and (ii) you continue to serve as a consultant to, and member of the
Board of Directors of, the Company, then the vesting on your option will thereafter be modified, without further action, such that 1/96 of the total number of Shares underlying the option will vest per month for the duration of the Vesting Period
(as defined below) with no further vesting thereafter. Vesting will depend on your continued employment with the Company (subject to the above proviso, in which case vesting will depend on your continued service to the Company as described therein).

 b. Initial Grants with Delayed Vesting. In addition to the grant referenced in paragraph 5a. above, the Board
of Directors shall grant you an option or stock purchase right to purchase 547,200 shares of the Company’s Common Stock (the “Delayed Vesting Shares”) with an exercise price equal to the fair market value on the date of the
grant. This option shall begin vesting in 3 equal trenches on each of the subsequent 3 anniversary dates of this agreement such that one-third of the Delayed Vesting Shares underlying such option will begin vesting on the one-year anniversary of the
date of this Agreement, an additional one-third of the Delayed Vesting Shares underlying this option shall begin vesting on the two-year anniversary of the date of this Agreement and the final one-third of the Delayed Vesting Shares underlying this
option shall begin vesting on the three-year anniversary of the date of this Agreement (for each tranche, the “Initial Vesting Date”), in each case subject to your being employed as the Company’s Chief Executive Officer on such
anniversary date. Once vesting begins on each of the three tranches, the Delayed Vesting Shares included within such tranche shall vest at the ratio of 1/48 of the total number of Delayed Vesting Shares included within such tranche per month
following the Initial Vesting Date for such tranche for the 48 month period thereafter; provided, however, that in the event that (i) your employment relationship with the Company is terminated or you are voluntarily or
involuntarily removed as Chief Executive Officer of the Company and (ii) you continue to serve as a consultant to, and member of the Board of Directors of, the Company, then

  

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the vesting on your option will thereafter be modified, without further action, such that 1/96 of the total number of Delayed Vesting Shares included within such tranche will vest per month for
the duration of the Vesting Period (as defined below) for such tranche with no further vesting thereafter. Vesting will depend on your continued employment with the Company (subject to the above proviso, in which case vesting will depend on your
continued service to the Company as described therein). For purposes of clarification, in the event that your employment relationship with the Company is terminated or you are voluntarily or involuntarily removed as Chief Executive Officer of the
Company and you continue to serve as a consultant to, and member of the Board of Directors of, the Company, you will not be entitled to begin vesting on any tranche of Delayed Vesting Shares under this option for which vesting has not already begun.

 c. Option Terms. The options granted to you as set forth hereunder will be immediately exercisable and, if
exercised prior to vesting, will be subject to the Company’s right to repurchase unvested shares at cost in connection with the termination of your employment with the Company (subject to paragraph 5d. below) or, under the circumstances
described in the provisos to paragraphs 5a and 5b above, in connection with the termination of services as described therein. The options will be non-qualified stock options and will be subject to the terms of the Company’s 2002 Stock Plan and
the Stock Option Agreements between you and the Company. 
 d. Acceleration of Vesting. In the event that the
Company consummates a Change of Control Transaction (as defined below), then 100% of the then unvested options (and any unvested shares issued upon the exercise of such options) held by you will become fully vested immediately prior to the
consummation of the Change of Control Transaction. In the event that the Company terminates your employment without Cause (as defined below), then you will receive an immediate acceleration of an additional twelve (12) months’ worth of
vesting on your options (and any shares issued upon the exercise of such options), subject to your execution of the Company’s standard form of release. Notwithstanding the foregoing, the acceleration of vesting benefits shall not apply to any
tranche of the option for which vesting has not yet begun under paragraph 5b. 
 For purposes of this paragraph 5, the following
terms shall have the meanings as set forth below: 
 “Change of Control Transaction” shall mean the sale,
conveyance, or disposal of all or substantially all of the Company’s assets or business, or the reorganization, consolidation or merger (or similar transaction or series of related transactions) of the Company with or into any other corporation
or corporations in which the holders of the Company’s outstanding shares immediately prior to such transaction or series of related transactions do not, immediately after such transaction or series of related transactions, retain stock
representing a majority of the voting power of the surviving corporation (or its parent corporation if the surviving corporation is wholly owned by the parent corporation) of such transaction or series of related transactions, provided that
this definition shall not apply to (i) a merger effected exclusively for the purpose of changing the domicile of the Company or (ii) an equity financing in which the Company is the surviving corporation. “Cause” shall mean
(i) your repeated intentional failure to perform, or repeated gross negligence in the performance of, one or more of your essential duties and responsibilities to the Company and/or your failure to follow the lawful directives of the
Company’s Board of Directors; (ii) your extended or repeated absence from the Company’s

  

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offices other than as a result of Company-related travel or Board-approved time off; (iii) your deliberate and material violation of any Company policy; (iv) your conviction of a felony
or your commission of any act of fraud, embezzlement, dishonesty or any other willful misconduct that has caused or is reasonably expected to result in material injury to the Company; (v) your unauthorized use or disclosure of any material
proprietary information or trade secrets of the Company or any other party to whom you owe an obligation of nondisclosure as a result of your relationship with the Company; (vi) your willful breach of any of your material obligations under any
written agreement or covenant with the Company; or (vii) your death or any disability that renders you, in the good faith determination of the Company’s Board of Directors, unable to perform the essential duties and responsibilities of
your job. 
 “Vesting Period” with respect to an option grant or stock purchase right grant, or tranche
thereunder, shall mean the forty-eight month period following the date that vesting commences for such grant or tranche. 
 6.
Benefits. 
 a. Insurance Benefits. The Company will provide you with the opportunity to participate
in the standard benefits plans currently available to other similarly situated employees, subject to any eligibility requirements imposed by such plans. 
 b. Vacation; Sick Leave. You will be entitled four (4) weeks of paid vacation days per year. Vacation accrues ratably per pay period and may not be taken before it is accrued.

 c. Business Expenses. The Company shall reimburse you, following submission of appropriate documentation, for
the reasonable travel, entertainment, cellular telephone and other business expenses incurred in connection with your duties to the Company, other than any expenses related to travel on personal or private aircraft, subject to the Company’s
expenditure and reimbursement guidelines. 
 7. Confidential Information and Invention Assignment Agreement. Your
acceptance of this offer and commencement of employment with the Company is contingent upon your continued adherence to the terms and conditions of the Company’s Confidential Information and Invention Assignment Agreement. A copy of your signed
agreement is enclosed as Attachment B. 
 8. Prior Agreement. You and the Company acknowledge that you are
currently a party to a previous employment agreement with the Company, which this new agreement shall supersede. In connection with your execution of this letter agreement and effective as of the Anniversary Date, the existing President and Chief
Executive Officer Agreement shall be terminated in its entirety. 
 9. No Conflicts. You understand and agree that
by accepting this offer of employment, you represent to the Company that your performance will not breach any other agreement to which you are a party and that you have not, and will not during the term of your employment with the Company, enter
into any oral or written agreement in conflict with any of the provisions of this letter or the Company’s policies. You will not use or disclose to any person associated with the Company, any confidential or proprietary information belonging to

  

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any former employer or other third party with respect to which you owe an obligation of confidentiality under any agreement or otherwise. The Company does not need and will not use such
information and we assist you in any way possible to preserve and protect the confidentiality of proprietary information belonging to third parties. Also, we expect you to abide by any obligations to refrain from soliciting any person employed by or
otherwise associated with any former employer and suggest that you refrain from having any contact with such persons until such time as any non-solicitation obligation expires. 
 10. At-Will Employment. Your employment with the Company will continue to be on an “at will” basis, meaning that
either you or the Company may terminate your employment at any time for any reason or no reason, without further obligation or liability other than as expressly set forth in this letter. The Company also reserves the right to modify or amend the
terms of your employment at any time for any reason, subject to the provisions of this letter. This policy of at-will employment is the entire agreement as to the duration of your employment and may only be modified in an express written agreement
signed by an appropriate officer of the Company. 
 As an employee, you will be expected to adhere to the Company’s
standards of professionalism, loyalty, integrity, honesty, reliability and respect for all. Please note that the Company is an equal opportunity employer. The Company does not permit, and will not tolerate, the unlawful discrimination or harassment
of any employees, consultants, or related third parties on the basis of sex, race, color, religion, age, national origin or ancestry, marital status, veteran status, mental or physical disability or medical condition, sexual orientation, pregnancy,
childbirth or related medical condition, or any other status protected by applicable law. Any questions regarding this EEO statement should be directed to Human Resources. 
 We are all delighted to be able to extend you this offer and look forward to continuing working with you. To indicate your acceptance of the
Company’s offer, please sign and date this letter in the space provided below and return it to me. This letter may not be modified or amended except by a written agreement, signed by the Company and by you. 
  

							
	Very truly yours,	 		 	ACCEPTED AND AGREED:
			
	  
 CALIX NETWORKS, INC.
	 		 	CARL E. RUSSO
	  
 By:
	 	  
 /s/ Paul Ferris
	 		 	 /s/ Carl Russo

		 		 		 	 Signature

	 Print Name:
	 	 Paul Ferris
	 		 	
				
	 Title:
	 	 Board Member
	 		 	November 1, 2006
		 		 		 	 Date

  

			
	Attachment A:	  	List of Board Commitments
	Attachment B:	  	Confidential Information and Invention Assignment Agreement

  

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 Attachment A 
 List of Board Commitments 
 Vital Network Services, Inc. 

Swarthmore College 

 Attachment B 
 Confidential Information and Invention Assignment Agreement 

 CALIX NETWORKS, INC. 
 CONFIDENTIAL INFORMATION AND 
 INVENTION
ASSIGNMENT AGREEMENT 
 (Employees) 
 As a condition of my becoming employed (or my employment being continued) by or retained as a consultant (or my consulting relationship being continued) by Calix Networks, Inc., a Delaware corporation
(“Calix”) or any of its current or future subsidiaries, affiliates, successors or assigns (collectively, the “Company”), and in consideration of my employment or consulting relationship with the Company and my
receipt of the compensation now and hereafter paid to me by the Company, I agree to the following: 
 1. Employment or
Consulting Relationship. I understand and acknowledge that this Agreement does not alter, amend or expand upon any rights I may have to continue in the employ of, or in a consulting relationship with, or the duration of my employment or
consulting relationship with, the Company under any existing agreements between the Company and me or under applicable law. Any employment or consulting relationship between the Company and me, whether commenced prior to or upon the date of this
Agreement, shall be referred to herein as the “Relationship.” 
 2. At-Will Relationship. I
understand and acknowledge that my Relationship with the Company is and shall continue to be at-will, as defined under applicable law, meaning that either I or the Company may terminate the Relationship at any time for any reason or no reason,
without further obligation or liability. 
 3. Confidential Information. 
 (a) Company Information. I agree at all times during the term of my Relationship with the Company and thereafter, to hold in
strictest confidence, and not to use, except for the benefit of the Company to the extent necessary to perform my obligations to the Company under the Relationship, or to disclose to any person, firm, corporation or other entity without written
authorization of the Board of Directors of Calix, any Confidential Information of the Company which I obtain or create. I further agree not to make copies of such Confidential Information except as authorized by the Company. I understand that
“Confidential Information” means any Company proprietary information, technical data, trade secrets or know-how, including, but not limited to, research, product plans, products, services, suppliers, customer lists and customers
(including, but not limited to, customers of the Company on whom I called or with whom I became acquainted during the Relationship), prices and costs, markets, software, developments, inventions, laboratory notebooks, processes, formulas,
technology, designs, drawings, engineering, hardware configuration information, marketing, licenses, finances, budgets or other business information disclosed to me by the Company either directly or indirectly in writing, orally or by drawings or
observation of parts or equipment or created by me during the period of the Relationship, whether or not during working hours. I understand that “Confidential Information” includes, but is not limited to, information pertaining to
any aspects of the Company’s business which is either information not known by actual or potential

 
competitors of the Company or other third parties not under confidentiality obligations to the Company, or is otherwise proprietary information of the Company or its customers or suppliers,
whether of a technical nature or otherwise. I further understand that Confidential Information does not include any of the foregoing items which has become publicly and widely known and made generally available through no wrongful act of mine or of
others who were under confidentiality obligations as to the item or items involved. 
 (b) Prior Obligations. I
represent that my performance of all terms of this Agreement as an employee or consultant of the Company has not breached and will not breach any agreement to keep in confidence proprietary information, knowledge or data acquired by me prior or
subsequent to the commencement of my Relationship with the Company, and I will not disclose to the Company or use any inventions, confidential or non-public proprietary information or material belonging to any previous, client, employer or any other
party. I will not induce the Company to use any inventions, confidential or non-public proprietary information, or material belonging to any previous client, employer or any other party. [I acknowledge and agree that I have attached to this
Agreement a list of all agreements (e.g., non-competition agreements, non-solicitation of customers agreements, non-solicitation of employees agreements, confidentiality agreements, inventions agreements, etc.) with a current or former employer, or
any other person or entity, that may restrict my ability to accept employment with the Company or my ability as an employee or consultant to recruit or engage customers or service providers on behalf of the Company, or otherwise relate to or
restrict my ability to perform my duties as an employee of the Company or any obligation I may have to the Company.] 
 (c)
Third Party Information. I recognize that the Company has received and in the future will receive confidential or proprietary information from third parties subject to a duty on the Company’s part to maintain the confidentiality
of such information and to use it only for certain limited purposes. I agree to hold all such confidential or proprietary information in the strictest confidence and not to disclose it to any person, firm or corporation or to use it except as
necessary in carrying out my work for the Company consistent with the Company’s agreement with such third party. 
 4.
Inventions. 
 (a) Inventions Retained and Licensed. I have attached hereto, as Exhibit A, a
list describing with particularity all inventions, original works of authorship, developments, improvements, and trade secrets which were made by me prior to the commencement of the Relationship (collectively referred to as “Prior
Inventions”), which belong solely to me or belong to me jointly with another, which relate in any way to any of the Company’s proposed businesses, products or research and development, and which are not assigned to the Company
hereunder; or, if no such list is attached, I represent that there are no such Prior Inventions. If, in the course of my Relationship with the Company, I incorporate into a Company product, process or machine a Prior Invention owned by me or in
which I have an interest, the Company is hereby granted and shall have a non-exclusive, royalty-free, irrevocable, perpetual, worldwide license (with the right to sublicense) to make, have made, copy, modify, make derivative works of, use,

  

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sell and otherwise distribute such Prior Invention as part of or in connection with such product, process or machine. 
 (b) Assignment of Inventions. I agree that I will promptly make full written disclosure to Calix, will hold in trust for the sole right and benefit of Calix, and hereby assign to Calix, or
its designee, all my right, title and interest throughout the world in and to any and all inventions, original works of authorship, developments, concepts, know-how, improvements or trade secrets, whether or not patentable or registrable under
copyright or similar laws, which I may solely or jointly conceive or develop or reduce to practice, or cause to be conceived or developed or reduced to practice, during the period of time in which I am employed by or a consultant of the Company
(collectively referred to as “Inventions”), except as provided in Section 4(e) below. I further acknowledge that all inventions, original works of authorship, developments, concepts, know-how, improvements or trade secrets
which are made by me (solely or jointly with others) within the scope of and during the period of my Relationship with the Company are “works made for hire” (to the greatest extent permitted by applicable law) and are compensated by
my salary (if I am an employee) or by such amounts paid to me under any applicable consulting agreement or consulting arrangements (if I am a consultant), unless regulated otherwise by the mandatory law of the state of California. 
 (c) Maintenance of Records. I agree to keep and maintain adequate and current written records of all Inventions made by me
(solely or jointly with others) during the term of my Relationship with the Company. The records may be in the form of notes, sketches, drawings, flow charts, electronic data or recordings, laboratory notebooks, and any other format. The records
will be available to and remain the sole property of the Company at all times. I agree not to remove such records from the Company’s place of business except as expressly permitted by Company policy which may, from time to time, be revised at
the sole election of the Company for the purpose of furthering the Company’s business. I agree to return all such records (including any copies thereof) to Calix at the time of termination of my Relationship with the Company as provided for in
Section 5. 
 (d) Patent and Copyright Rights. I agree to assist Calix, or its designee, at its expense, in
every proper way to secure Calix, or its designee’s, rights in the Inventions and any copyrights, patents, trademarks, mask work rights, moral rights, or other intellectual property rights relating thereto in any and all countries, including
the disclosure to Calix or its designee of all pertinent information and data with respect thereto, the execution of all applications, specifications, oaths, assignments, recordations, and all other instruments which Calix or its designee shall deem
necessary in order to apply for, obtain, maintain and transfer such rights and in order to assign and convey to Calix or its designee, and any successors, assigns and nominees the sole and exclusive rights, title and interest in and to such
Inventions, and any copyrights, patents, mask work rights or other intellectual property rights relating thereto. I further agree that my obligation to execute or cause to be executed, when it is in my power to do so, any such instrument or papers
shall continue after the termination of this Agreement until the expiration of the last such intellectual property right to expire in any country of the world. If Calix or its designee is unable because of my mental or physical incapacity or
unavailability or for any other reason to secure my signature to apply for or to pursue any application for any United States or foreign patents, copyright, mask works or other registrations covering Inventions or original

  

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works of authorship assigned to Calix or its designee as above, then I hereby irrevocably designate and appoint Calix and its duly authorized officers and agents as my agent and attorney in fact,
to act for and in my behalf and stead to execute and file any such applications and to do all other lawfully permitted acts to further the application for, prosecution, issuance, maintenance or transfer of letters patent, copyright or other
registrations thereon with the same legal force and effect as if originally executed by me. I hereby waive and irrevocably quitclaim to Calix or its designee any and all claims, of any nature whatsoever, which I now or hereafter have for
infringement of any and all proprietary rights assigned to Calix or such designee. 
 (e) Exception to Assignments.
I understand that the provisions of this Agreement requiring assignment of Inventions to Calix do not apply to any invention which qualifies fully under the provisions of California Labor Code Section 2870 (attached hereto as Exhibit B).
I will advise the Company promptly in writing of any inventions that I believe meet such provisions and are not otherwise disclosed on Exhibit A. 
 5. Returning Company Documents. I agree that, at the time of termination of my Relationship with the Company, I will deliver to the Company (and will not keep in my possession, recreate or
deliver to anyone else) any and all devices, records, data, notes, reports, proposals, lists, correspondence, specifications, drawings, blueprints, sketches, laboratory notebooks, materials, flow charts, equipment, other documents or property, or
reproductions of any of the aforementioned items developed by me pursuant to the Relationship or otherwise belonging to the Company, its successors or assigns. I further agree that any property situated on the Company’s premises and owned by
the Company, including disks and other storage media, filing cabinets or other work areas, is subject to inspection by Company personnel at any time with or without notice. In the event of the termination of the Relationship, I agree to sign and
deliver the “Termination Certification” attached hereto as Exhibit C; however, my failure to sign and deliver the Termination Certificate shall in no way diminish my continuing obligations under this Agreement. 
 6. Notification to Other Parties. 
 (a) Employees. In the event that I leave the employ of the Company, I hereby consent to notification by the Company to my new employer about my rights and obligations under this Agreement.

 (b) Consultants. I hereby grant consent to notification by the Company to any other parties besides the Company
with whom I maintain a consulting relationship, including parties with whom such relationship commences after the effective date of this Agreement, about my rights and obligations under this Agreement. 
 7. Solicitation of Employees, Consultants and Other Parties. I agree that during the term of my Relationship with the Company,
and for a period of twenty-four (24) months immediately following the termination of my Relationship with the Company for any reason, whether with or without cause, I shall not either directly or indirectly solicit, induce, recruit or encourage
any of the Company’s employees or consultants to terminate their relationship with the Company, or attempt to solicit, induce, recruit, encourage or take away employees or

  

 4 

 
consultants of the Company, either for myself or for any other person or entity. Further, for a period of twenty-four (24) months following termination of my Relationship with the Company
for any reason, with or without cause, I shall not solicit any licensor to or customer of the Company or licensee of the Company’s products, in each case, that are known to me, with respect to any business, products or services that are
competitive to the products or services offered by the Company or under development as of the date of termination of my Relationship with the Company. 
 8. Representations and Covenants. 
 (a) Facilitation of
Agreement. I agree to execute promptly any proper oath or verify any proper document required to carry out the terms of this Agreement upon the Company’s written request to do so. 
 (b) Conflicts. I represent that my performance of all the terms of this Agreement does not and will not breach any agreement I
have entered into, or will enter into with any third party, including without limitation any agreement to keep in confidence proprietary information acquired by me in confidence or in trust prior to commencement of my Relationship with the Company.
I agree not to enter into any written or oral agreement that conflicts with the provisions of this Agreement. 
 (c)
Voluntary Execution. I certify and acknowledge that I have carefully read all of the provisions of this Agreement and that I understand and will fully and faithfully comply with such provisions. 
 9. General Provisions. 
 (a) Governing Law. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of California, without giving effect to the
principles of conflict of laws. 
 (b) Entire Agreement. This Agreement sets forth the entire agreement and
understanding between the Company and me relating to the subject matter herein and merges all prior discussions between us. No modification or amendment to this Agreement, nor any waiver of any rights under this Agreement, will be effective unless
in writing signed by both parties. Any subsequent change or changes in my duties, obligations, rights or compensation will not affect the validity or scope of this Agreement. 
 (c) Severability. If one or more of the provisions in this Agreement are deemed void by law, then the remaining provisions will
continue in full force and effect. 
 (d) Successors and Assigns. This Agreement will be binding upon my heirs,
executors, administrators and other legal representatives, and my successors and assigns, and will be for the benefit of the Company, its successors, and its assigns. 
  

 5 

 (e) Survival. The provisions of this Agreement shall survive the termination
of the Relationship and the assignment of this Agreement by the Company to any successor in interest or other assignee. 
 (f)
ADVICE OF COUNSEL. I ACKNOWLEDGE THAT, IN EXECUTING THIS AGREEMENT, I HAVE HAD THE OPPORTUNITY TO SEEK THE ADVICE OF INDEPENDENT LEGAL COUNSEL, AND I HAVE READ AND UNDERSTOOD ALL OF THE TERMS AND PROVISIONS OF THIS AGREEMENT. THIS
AGREEMENT SHALL NOT BE CONSTRUED AGAINST ANY PARTY BY REASON OF THE DRAFTING OR PREPARATION HEREOF. 
 The parties have executed
this Agreement on the respective dates set forth below: 
  

									
	COMPANY:	 		 	EMPLOYEE:
			
	CALIX NETWORKS, INC.	 		 	Carl Russo
				
	By:	 	 /s/ Michael Hatfield
	 		 	
	Name:	 	 Michael Hatfield
	 		 	 /s/ Carl Russo

	Title:	 	 CEO
	 		 	Signature
	Date:	 	  
	 		 	Date:	 	  

	Address:	 	1035 North McDowell Blvd.	 		 	Address:	 	  

		 	Petaluma, CA 94954	 		 		 	

  

 6 

 EXHIBIT A 
 LIST OF PRIOR INVENTIONS 
 AND ORIGINAL WORKS OF
AUTHORSHIP 
 EXCLUDED UNDER SECTION 4 
  

					
	 Title
	 	Date	 	Identifying Number
or Brief Description
		 		 	
		 		 	
		 		 	
		 		 	
		 		 	
		 		 	
		 		 	
		 		 	
		 		 	
		 		 	

 ___ No inventions or improvements 
 ___ Additional Sheets Attached 
 Signature of Employee/Consultant: ______________________

 Print Name of Employee/Consultant: ____________________ 
 Date: ______________________________________________ 

 EXHIBIT B 
 Section 2870 of the California Labor Code is as follows: 
 (a) Any provision
in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights in an invention to his or her employer shall not apply to an invention that the employee developed entirely on his or her own time
without using the employer’s equipment, supplies, facilities, or trade secret information except for those inventions that either: 
 (1) Relate at the time of conception or reduction to practice of the invention to the employer’s business, or actual or demonstrably anticipated research or development of the employer; or 
 (2) Result from any work performed by the employee for the employer. 
 (b) To the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded from
being required to be assigned under subdivision (a), the provision is against the public policy of this state and is unenforceable. 

 EXHIBIT C 
 TERMINATION CERTIFICATION 
 This is to certify that I
do not have in my possession, nor have I failed to return, any devices, records, data, notes, reports, proposals, lists, correspondence, specifications, drawings, blueprints, sketches, laboratory notebooks, flow charts, materials, equipment, other
documents or property, or copies or reproductions of any aforementioned items belonging to Calix Networks, Inc., its subsidiaries, affiliates, successors or assigns (together the “Company”). 
 I further certify that I have complied with all the terms of the Company’s Confidential Information and Invention Assignment Agreement
signed by me, including the reporting of any inventions and original works of authorship (as defined therein), conceived or made by me (solely or jointly with others) covered by that agreement. 
 I further agree that, in compliance with the Confidential Information and Invention Assignment Agreement, I will preserve as confidential
all trade secrets, confidential knowledge, data or other proprietary information relating to products, processes, know-how, designs, formulas, developmental or experimental work, computer programs, data bases, other original works of authorship,
customer lists, business plans, financial information or other subject matter pertaining to any business of the Company or any of its employees, clients, consultants or licensees. 
 I further agree that for twenty-four (24) months from the date of this Certificate, I shall not either directly or indirectly solicit,
induce, recruit or encourage any of the Company’s employees or consultants to terminate their relationship with the Company, or attempt to solicit, induce, recruit, encourage or take away, hire, or otherwise engage the services of employees or
consultants of the Company, either for myself or for any other person or entity. Further, I shall not at any time use any Confidential Information of the Company to negatively influence any of the Company’s clients or customers from purchasing
Company products or services or to solicit or influence or attempt to influence any client, customer or other person either directly or indirectly, to direct his or its purchase of products and/or services to any person, firm, corporation,
institution or other entity in competition with the business of the Company. 
  

			
	Date:	 	 

  

					
	 	 		 	  
		 		 	(Employee’s Signature)
			
	 	 		 	  
		 		 	(Type/Print Employee’s Name)

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