Document:

1998 Stock Plan

 EXHIBIT 10.2 
  
 AVANEX CORPORATION 
  
 1998 STOCK PLAN 
 (as amended and
restated effective July 2005) 
  
 1. Purposes of the Plan.
The purposes of this 1998 Stock Plan are: 
  

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

  

	 	•	 	to provide additional incentive to Employees, Directors and Consultants, and 

  

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

  
 Options granted under the Plan may be Incentive Stock Options or Nonstatutory Stock Options, as determined by the Administrator at the time of grant.
Stock Purchase Rights and Restricted Stock Units may also be granted under the Plan. 
  
 2. Definitions. As used herein, the following definitions shall apply: 
  
 (a) “Administrator” means the Board or any of its Committees as shall be administering the Plan, in accordance with Section 4 of the
Plan. 
  
 (b) “Applicable Laws” means the
requirements relating to the administration of equity plans under U. S. state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and the applicable
laws of any foreign country or jurisdiction where Awards are, or will be, granted under the Plan. 
  
 (c) “Award” means, individually or collectively, a grant under the Plan of Options, Stock Purchase Rights or Restricted Stock Units.

  
 (d) “Award Agreement” means the written or
electronic agreement setting forth the terms and provisions applicable to each Award granted under the Plan. The Award Agreement is subject to the terms and conditions of the Plan. 
  
 (e) “Awarded Stock” means the Common Stock subject to an Award. 
  
 (f) “Board” means the Board of Directors of the Company.

  
 (g) “Code” means the Internal Revenue Code of
1986, as amended. 
  
 (h) “Committee” means a
committee of Directors appointed by the Board in accordance with Section 4 of the Plan. 
  

 1 

 (i) “Common Stock” means the common stock of the Company or, in the case of certain
Restricted Stock Units, the cash equivalent thereof. 
  
 (j)
“Company” means Avanex Corporation, a Delaware corporation. 
  
 (k) “Consultant” means any person, including an advisor, engaged by the Company or a Parent or Subsidiary to render services to such entity. 
  
 (l) “Director” means a member of the Board. 
  
 (m) “Disability” means total and permanent disability as
defined in Section 22(e)(3) of the Code. 
  
 (n)
“Employee” means any person, including Officers and Directors, employed by the Company or any Parent or Subsidiary of the Company. A Service Provider shall not cease to be an Employee in the case of (i) any leave of absence approved
by the Company or (ii) transfers between locations of the Company or between the Company, its Parent, any Subsidiary, or any successor. For purposes of Incentive Stock Options, no such leave may exceed ninety days, unless reemployment upon
expiration of such leave is guaranteed by statute or contract. If reemployment upon expiration of a leave of absence approved by the Company is not so guaranteed, on the 181st day of such leave any Incentive Stock Option held by the Optionee shall
cease to be treated as an Incentive Stock Option and shall be treated for tax purposes as a Nonstatutory Stock Option. Neither service as a Director nor payment of a director’s fee by the Company shall be sufficient to constitute
“employment” by the Company. 
  
 (o) “Exchange
Act” means the Securities Exchange Act of 1934, as amended. 
  
 (p) “Fair Market Value” means, as of any date, the value of Common Stock determined as follows: 
  
 (i) If the Common Stock is listed on any established stock exchange or a national market system, including without limitation the Nasdaq National Market
or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system for the last market trading day
prior to the time of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; 
  
 (ii) If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, the Fair Market Value of a Share of
Common Stock shall be the mean between the high bid and low asked prices for the Common Stock on the last market trading day prior to the day of determination, as reported in The Wall Street Journal or such other source as the Administrator
deems reliable; or 
  
 (iii) In the absence of an established
market for the Common Stock, the Fair Market Value shall be determined in good faith by the Administrator. 
  
 (q) “Incentive Stock Option” means an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the
Code and the regulations promulgated thereunder. 
  

 2 

 (r) “IPO Effective Date” means the date upon which the Securities and Exchange
Commission declares the initial public offering of the Company’s common stock as effective. 
  
 (s) “Nonstatutory Stock Option” means an Option not intended to qualify as an Incentive Stock Option. 
  
 (t) “Notice of Grant” means a written or electronic notice
evidencing certain terms and conditions of an individual Award. The Notice of Grant is part of the Award Agreement. 
  
 (u) “Officer” means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and
regulations promulgated thereunder. 
  
 (v)
“Option” means a stock option granted pursuant to the Plan. 
  
 (w) “Option Exchange Program” means a program whereby outstanding Options are surrendered in exchange for Options with a lower exercise price. 
  
 (x) “Optionee” means the holder of an outstanding Option
granted under the Plan. 
  
 (y) “Parent” means a
“parent corporation,” whether now or hereafter existing, as defined in Section 424(e) of the Code. 
  
 (z) “Participant” means the holder of an outstanding Award granted under the Plan. 
  
 (aa) “Plan” means this 1998 Stock Plan, as may be amended
from time to time. 
  
 (bb) “Restricted Stock”
means shares of Common Stock acquired pursuant to a grant of Stock Purchase Rights under Section 11 of the Plan. 
  
 (cc) “Restricted Stock Unit” means a bookkeeping entry representing an amount equal to the Fair Market Value of one Share, granted
pursuant to Section 12. Each Restricted Stock Unit represents an unfunded and unsecured obligation of the Company. 
  
 (dd) “Rule 16b-3” means Rule 16b-3 of the Exchange Act or any successor to Rule 16b-3, as in effect when discretion is being exercised
with respect to the Plan. 
  
 (ee) “Section 16(b)
“ means Section 16(b) of the Exchange Act. 
  
 (ff)
“Service Provider” means an Employee, Director or Consultant. 
  
 (gg) “Share” means a share of the Common Stock, as adjusted in accordance with Section 14 of the Plan. 
  
 (hh) “Stock Purchase Right” means the right to purchase Common Stock pursuant to Section 11 of the Plan, as evidenced by a Notice of
Grant. 
  
 (ii) “Subsidiary” means a
“subsidiary corporation”, whether now or hereafter existing, as defined in Section 424(f) of the Code. 
  

 3 

 3. Stock Subject to the Plan. Subject to the provisions of Section 14 of the Plan, the maximum
aggregate number of Shares that may be optioned and sold under the Plan is 29,550,000 Shares, plus an annual increase to be added on the first day of the Company’s fiscal year beginning on July 1, 2000, equal to the lesser of (i) 6,000,000
shares, (ii) 4.9% of the outstanding shares on such date or (iii) a lesser amount determined by the Board. The Shares may be authorized, but unissued, or reacquired Common Stock. 
  
 If an Award expires or becomes unexercisable without having been exercised in full, or is surrendered pursuant to an Option
Exchange Program, or, with respect to Restricted Stock or Restricted Stock Units is forfeited back to or repurchased by the Company, the unpurchased Shares (or with respect to Awards other than Options, the forfeited or repurchased Shares) which
were subject thereto shall become available for future grant or sale under the Plan (unless the Plan has terminated); provided, however, that Shares that have actually been issued under the Plan under any Award shall not be returned to the
Plan and shall not become available for future distribution under the Plan, except that if Shares of Restricted Stock or Restricted Stock Units are repurchased by the Company at their original purchase price or are forfeited to the Company, such
Shares shall become available for future grant under the Plan. To the extent an Award under the Plan is paid out in cash rather than stock, such cash payment shall not reduce the number of Shares available for issuance under the Plan. 
  
 4. Administration of the Plan. 
  
 (a) Procedure. 
  
 (i) Multiple Administrative Bodies. Different Committees with
respect to different groups of Service Providers may administer the Plan. 
  
 (ii) Section 162(m). To the extent that the Administrator determines it to be desirable to qualify Options granted hereunder as “performance-based compensation” within the meaning of Section 162(m) of
the Code, the Plan shall be administered by a Committee of two or more “outside directors” within the meaning of Section 162(m) of the Code. 
  
 (iii) Rule 16b-3. To the extent desirable to qualify transactions hereunder as exempt under Rule 16b-3, the transactions contemplated hereunder
shall be structured to satisfy the requirements for exemption under Rule 16b-3. 
  
 (iv) Other Administration. Other than as provided above, the Plan shall be administered by (A) the Board or (B) a Committee, which committee shall be constituted to satisfy Applicable Laws. 
  
 (b) Powers of the Administrator. Subject to the provisions of the
Plan, and in the case of a Committee, subject to the specific duties delegated by the Board to such Committee, the Administrator shall have the authority, in its discretion: 
  
 (i) to determine the Fair Market Value; 
  
 (ii) to select the Service Providers to whom Awards may be granted hereunder; 
  

 4 

 (iii) to determine the number of shares of Common Stock to be covered by each Award granted hereunder;

  
 (iv) to approve forms of agreement for use under the Plan;

  
 (v) to determine the terms and conditions, not inconsistent
with the terms of the Plan, of any Award granted hereunder. Such terms and conditions include, but are not limited to, the exercise price, the time or times when Awards may be exercised or purchased (which may be based on performance criteria), any
vesting acceleration or waiver of forfeiture or repurchase restrictions, and any restriction or limitation regarding any Award or the shares of Common Stock relating thereto, based in each case on such factors as the Administrator, in its sole
discretion, shall determine; 
  
 (vi) to reduce the exercise
price of any Option, Stock Purchase Right or Restricted Stock Unit to the then current Fair Market Value if the Fair Market Value of the Common Stock covered by such Option, Stock Purchase Right or Restricted Stock Unit shall have declined since the
date the Option, Stock Purchase Right or Restricted Stock Unit was granted; 
  
 (vii) to institute an Option Exchange Program; 
  
 (viii) to construe and interpret the terms of the Plan and Awards granted pursuant to the Plan; 
  
 (ix) to prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans established for
the purpose of qualifying for preferred tax treatment under foreign tax laws; 
  
 (x) to modify or amend each Award (subject to Section 16(c) of the Plan), including the discretionary authority to extend the post-termination exercisability period of Options longer than is otherwise provided for in
the Plan; 
  
 (xi) to allow Participants to satisfy withholding
tax obligations by electing to have the Company withhold from the Shares or cash to be issued upon exercise or vesting of an Award that number of Shares or cash having a Fair Market Value equal to the amount required to be withheld. The Fair Market
Value of the Shares to be withheld shall be determined on the date that the amount of tax to be withheld is to be determined. All elections by a Participant to have Shares or cash withheld for this purpose shall be made in such form and under such
conditions as the Administrator may deem necessary or advisable; 
  
 (xii) to authorize any person to execute on behalf of the Company any instrument required to effect the grant of an Award previously granted by the Administrator; 
  
 (xiii) to make all other determinations deemed necessary or advisable for administering the Plan. 
  
 (c) Effect of Administrator’s Decision. The Administrator’s
decisions, determinations and interpretations shall be final and binding on all Participants. 
  

 5 

 5. Eligibility. Nonstatutory Stock Options, Stock Purchase Rights and Restricted Stock Units may
be granted to Service Providers. Incentive Stock Options may be granted only to Employees. 
  
 6. Limitations. 
  
 (a)
Each Option shall be designated in the Award Agreement as either an Incentive Stock Option or a Nonstatutory Stock Option. However, notwithstanding such designation, to the extent that the aggregate Fair Market Value of the Shares with respect to
which Incentive Stock Options are exercisable for the first time by the Optionee during any calendar year (under all plans of the Company and any Parent or Subsidiary) exceeds $100,000, such Options shall be treated as Nonstatutory Stock Options.
For purposes of this Section 6(a), Incentive Stock Options shall be taken into account in the order in which they were granted. The Fair Market Value of the Shares shall be determined as of the time the Option with respect to such Shares is granted.

  
 (b) Neither the Plan nor any Award shall confer upon a
Participant any right with respect to continuing the Participant’s relationship as a Service Provider with the Company, nor shall they interfere in any way with the Participant’s right or the Company’s or its Parent or
Subsidiary’s right to terminate such relationship at any time, with or without cause. 
  
 (c) The following limitations shall apply to grants of Options: 
  
 (i) No Service Provider shall be granted, in any fiscal year of the Company, Options to purchase more than 1,500,000 Shares. 
  
 (ii) In connection with his or her initial service, a Service Provider may
be granted Options to purchase up to an additional 4,500,000 Shares, which shall not count against the limit set forth in subsection (i) above. 
  
 (iii) The foregoing limitations shall be adjusted proportionately in connection with any change in the Company’s capitalization as described in
Section 14. 
  
 (iv) If an Option is cancelled in the same fiscal
year of the Company in which it was granted (other than in connection with a transaction described in Section 14), the cancelled Option will be counted against the limits set forth in subsections (i) and (ii) above. For this purpose, if the exercise
price of an Option is reduced, the transaction will be treated as a cancellation of the Option and the grant of a new Option. 
  
 7. Term of Plan. Subject to Section 20 of the Plan, the amendment and restatement of the Plan shall become effective upon the IPO Effective Date.
It shall continue in effect for a term of ten (10) years from the date of obtaining stockholder approval of the Plan in December, 1999, unless terminated earlier under Section 16 of the Plan. 
  
 8. Term of Option. The term of each Option shall be stated in the
Award Agreement. In the case of an Incentive Stock Option, the term shall be ten (10) years from the date of grant or such shorter term as may be provided in the Award Agreement. Moreover, in the case of an Incentive Stock Option granted to an
Optionee who, at the time the Incentive Stock Option is granted, owns stock representing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any Parent or Subsidiary, the term of the Incentive
Stock Option shall be five (5) years from the date of grant or such shorter term as may be provided in the Award Agreement. 
  

 6 

 9. Option Exercise Price and Consideration. 
  
 (a) Exercise Price. The per Share exercise price for the Shares to be
issued pursuant to exercise of an Option shall be determined by the Administrator, subject to the following: 
  
 (i) In the case of an Incentive Stock Option 
  
 (A) granted to an Employee who, at the time the Incentive Stock Option is granted, owns stock representing more than ten percent (10%) of the voting
power of all classes of stock of the Company or any Parent or Subsidiary, the per Share exercise price shall be no less than 110% of the Fair Market Value per Share on the date of grant. 
  
 (B) granted to any Employee other than an Employee described in paragraph (A) immediately above, the per Share exercise
price shall be no less than 100% of the Fair Market Value per Share on the date of grant. 
  
 (ii) In the case of a Nonstatutory Stock Option, the per Share exercise price shall be determined by the Administrator. In the case of a Nonstatutory Stock Option intended to qualify as “performance-based
compensation” within the meaning of Section 162(m) of the Code, the per Share exercise price shall be no less than 100% of the Fair Market Value per Share on the date of grant. 
  
 (iii) Notwithstanding the foregoing, Options may be granted with a per Share exercise price of less than 100% of the Fair
Market Value per Share on the date of grant pursuant to a merger or other corporate transaction. 
  
 (b) Waiting Period and Exercise Dates. At the time an Option is granted, the Administrator shall fix the period within which the Option may be
exercised and shall determine any conditions that must be satisfied before the Option may be exercised. 
  
 (c) Form of Consideration. The Administrator shall determine the acceptable form of consideration for exercising an Option, including the method of
payment. In the case of an Incentive Stock Option, the Administrator shall determine the acceptable form of consideration at the time of grant. Such consideration may consist entirely of: 
  
 (i) cash; 
  
 (ii) check; 
  
 (iii) promissory note; 
  
 (iv) other Shares which (A) in the case of Shares acquired upon exercise of an option, have been owned by the Optionee for more than six months on the
date of surrender, and (B) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which said Option shall be exercised; 
  

 7 

 (v) consideration received by the Company under a cashless exercise program implemented by the Company
in connection with the Plan; 
  
 (vi) a reduction in the amount
of any Company liability to the Optionee, including any liability attributable to the Optionee’s participation in any Company-sponsored deferred compensation program or arrangement; 
  
 (vii) any combination of the foregoing methods of payment; or 
  
 (viii) such other consideration and method of payment for the issuance of Shares to the extent permitted by Applicable
Laws. 
  
 10. Exercise of Option. 
  
 (a) Procedure for Exercise; Rights as a Shareholder. Any Option
granted hereunder shall be exercisable according to the terms of the Plan and at such times and under such conditions as determined by the Administrator and set forth in the Award Agreement. Unless the Administrator provides otherwise, vesting of
Options granted hereunder shall be tolled during any unpaid leave of absence. An Option may not be exercised for a fraction of a Share. 
  
 An Option shall be deemed exercised when the Company receives: (i) written or electronic notice of exercise (in accordance with the Award Agreement) from
the person entitled to exercise the Option, and (ii) full payment for the Shares with respect to which the Option is exercised. Full payment may consist of any consideration and method of payment authorized by the Administrator and permitted by the
Award Agreement and the Plan. Shares issued upon exercise of an Option shall be issued in the name of the Optionee or, if requested by the Optionee, in the name of the Optionee and his or her spouse. Until the Shares are issued (as evidenced by the
appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a shareholder shall exist with respect to the Awarded Stock, notwithstanding the
exercise of the Option. The Company shall issue (or cause to be issued) such Shares promptly after the Option is exercised. No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are
issued, except as provided in Section 14 of the Plan. 
  
 Exercising an Option in any manner shall decrease the number of Shares thereafter available, both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised. 
  
 (b) Termination of Relationship as a Service Provider. If an Optionee
ceases to be a Service Provider, other than upon the Optionee’s death or Disability, the Optionee may exercise his or her Option within such period of time as is specified in the Award Agreement to the extent that the Option is vested on the
date of termination (but in no event later than the expiration of the term of such Option as set forth in the Award Agreement). In the absence of a specified time in the Award Agreement, the Option shall remain exercisable for three (3) months
following the Optionee’s termination. If, on the date of termination, the Optionee is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option shall revert to the Plan. If, after termination, the
Optionee does not exercise his or her Option within the time specified by the Administrator, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 
  

 8 

 (c) Disability of Optionee. If an Optionee ceases to be a Service Provider as a result of the
Optionee’s Disability, the Optionee may exercise his or her Option within such period of time as is specified in the Award Agreement to the extent the Option is vested on the date of termination (but in no event later than the expiration of the
term of such Option as set forth in the Award Agreement). In the absence of a specified time in the Award Agreement, the Option shall remain exercisable for twelve (12) months following the Optionee’s termination. If, on the date of
termination, the Optionee is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option shall revert to the Plan. If, after termination, the Optionee does not exercise his or her Option within the time
specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 
  
 (d) Death of Optionee. If an Optionee dies while a Service Provider, the Option may be exercised within such period of time as is specified in the
Award Agreement (but in no event later than the expiration of the term of such Option as set forth in the Notice of Grant), by the Optionee’s estate or by a person who acquires the right to exercise the Option by bequest or inheritance, but
only to the extent that the Option is vested on the date of death. In the absence of a specified time in the Award Agreement, the Option shall remain exercisable for twelve (12) months following the Optionee’s termination. If, at the time of
death, the Optionee is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option shall immediately revert to the Plan. The Option may be exercised by the executor or administrator of the Optionee’s
estate or, if none, by the person(s) entitled to exercise the Option under the Optionee’s will or the laws of descent or distribution. If the Option is not so exercised within the time specified herein, the Option shall terminate, and the
Shares covered by such Option shall revert to the Plan. 
  
 (e)
Buyout Provisions. The Administrator may at any time offer to buy out for a payment in cash or Shares an Option previously granted based on such terms and conditions as the Administrator shall establish and communicate to the Optionee at the
time that such offer is made. 
  
 11. Stock Purchase
Rights. 
  
 (a) Rights to Purchase. Stock Purchase
Rights may be issued either alone, in addition to, or in tandem with other Awards granted under the Plan and/or cash awards made outside of the Plan. After the Administrator determines that it will offer Stock Purchase Rights under the Plan, it
shall advise the offeree in writing or electronically, by means of a Notice of Grant, of the terms, conditions and restrictions related to the offer, including the number of Shares that the offeree shall be entitled to purchase, the price to be
paid, and the time within which the offeree must accept such offer. The offer shall be accepted by execution of an Award Agreement in the form determined by the Administrator. 
  
 (b) Repurchase Option. Unless the Administrator determines otherwise, the Award Agreement shall grant the Company a
repurchase option exercisable upon the voluntary or involuntary termination of the purchaser’s service with the Company for any reason (including death or Disability). The purchase price for Shares repurchased pursuant to the Award Agreement
shall be the original price paid by the purchaser and may be paid by cancellation of any indebtedness of the purchaser to the Company. The repurchase option shall lapse at a rate determined by the Administrator. 
  
 (c) Other Provisions. The Award Agreement shall contain such other
terms, provisions and conditions not inconsistent with the Plan as may be determined by the Administrator in its sole discretion. 
  

 9 

 (d) Rights as a Shareholder. Once the Stock Purchase Right is exercised, the purchaser shall have
the rights equivalent to those of a shareholder, and shall be a shareholder when his or her purchase is entered upon the records of the duly authorized transfer agent of the Company. No adjustment will be made for a dividend or other right for which
the record date is prior to the date the Stock Purchase Right is exercised, except as provided in Section 14 of the Plan. 
  
 12. Restricted Stock Units. 
  
 (a) Grant. Restricted Stock Units may be granted at any time and from time to time as determined by the Administrator. Each Restricted Stock Unit
grant shall be evidenced by an Award Agreement that shall specify such other terms and conditions as the Administrator, in its sole discretion, shall determine, including all terms, conditions, and restrictions related to the grant, the number of
Restricted Stock Units and the form of payout, which, subject to Section 12(d), may be left to the discretion of the Administrator. 
  
 (b) Vesting Criteria and Other Terms. The Administrator shall set vesting or other restriction criteria in its discretion, which, depending on the
extent to which the criteria are met, will determine the number of Restricted Stock Units that will be paid out to the Participant. The Administrator may set vesting or other restriction criteria based upon the achievement of Company-wide,
departmental, business unit, or individual goals (including, but not limited to, continued employment or service), applicable federal or state securities laws, or any other basis determined by the Administrator in its discretion. 
  
 (c) Earning Restricted Stock Units. Upon meeting the applicable
vesting or other restriction criteria, the Participant shall be entitled to receive a payout as specified in the Award Agreement. Notwithstanding the foregoing, at any time after the grant of Restricted Stock Units, the Administrator, in its sole
discretion, may reduce or waive any vesting or other restriction criteria that must be met to receive a payout. 
  
 (d) Form and Timing of Payment. Payment of earned Restricted Stock Units shall be made as soon as practicable after the date(s) set forth in the
Award Agreement. The Administrator, in its sole discretion, may pay earned Restricted Stock Units in cash, Shares, or a combination thereof. Shares represented by Restricted Stock Units that are fully paid in cash again shall be available for grant
under the Plan. 
  
 (e) Cancellation. On the date set forth
in the Award Agreement, all unearned Restricted Stock Units shall be forfeited to the Company. 
  
 13. Non-Transferability of Awards. Unless determined otherwise by the Administrator, an Award may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by
the laws of descent or distribution and may be exercised, during the lifetime of the Participant, only by the Participant. If the Administrator makes an Award transferable, such Award shall contain such additional terms and conditions as the
Administrator deems appropriate. 
  
 14. Adjustments Upon
Changes in Capitalization, Dissolution, Merger or Asset Sale. 
  
 (a) Changes in Capitalization. Subject to any required action by the shareholders of the Company, the number of shares of Common Stock covered by each outstanding Award, and the 

  

 10 

 
number of shares of Common Stock which have been authorized for issuance under the Plan but as to which no Awards have yet been granted or which have been
returned to the Plan upon cancellation or expiration of an Award, as well as the price per share of Common Stock covered by each such outstanding Award, shall be proportionately adjusted for any increase or decrease in the number of issued shares of
Common Stock resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Common Stock, or any other increase or decrease in the number of issued shares of Common Stock effected without receipt of
consideration by the Company; provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.” Such adjustment shall be made by the Board, whose
determination in that respect shall be final, binding and conclusive. Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no
adjustment by reason thereof shall be made with respect to, the number or price of shares of Common Stock subject to an Award. 
  
 (b) Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, the Administrator shall notify each
Participant as soon as practicable prior to the effective date of such proposed transaction. The Administrator in its discretion may provide for a Participant to have the right to exercise his or her Option until ten (10) days prior to such
transaction as to all of the Awarded Stock covered thereby, including Shares as to which the Option would not otherwise be exercisable. In addition, the Administrator may provide that any Company repurchase option or forfeiture rights applicable to
any Award shall lapse 100% and that any Award vesting shall accelerate 100%, provided the proposed dissolution or liquidation takes place at the time and in the manner contemplated. To the extent it has not been previously exercised (with respect to
Options and Stock Purchase Rights) or vested (with respect to other Awards), an Award will terminate immediately prior to the consummation of such proposed action. 
  
 (c) Merger or Asset Sale. In the event of a merger of the Company with or into another corporation, or the sale of
all or substantially all of the assets of the Company, each outstanding Award shall be assumed or an equivalent option or right substituted by the successor corporation or a Parent or Subsidiary of the successor corporation. In the event that the
successor corporation refuses to assume or substitute for the Award, the Participant shall (i) fully vest in and have the right to exercise the Option or Stock Purchase Right as to all of the Awarded Stock, including Shares as to which it would not
otherwise be vested or exercisable, and (ii) fully earn and receive a payout with respect to other Awards. If an Award is not assumed or substituted for in the event of a merger or sale of assets, the Administrator shall notify the Participant in
writing or electronically that (i) the Option or Stock Purchase Right shall be fully vested and exercisable for a period of fifteen (15) days from the date of such notice, and (ii) all outstanding Options and Stock Purchase Rights shall terminate
upon the expiration of such period and (iii) all other outstanding Awards shall be paid out immediately prior to the merger or sale of all or substantially all of the assets. For the purposes of this paragraph, the Award shall be considered assumed
if, following the merger or sale of assets, the award confers the right to purchase or receive, for each Share of Awarded Stock subject to the Award immediately prior to the merger or sale of assets, the consideration (whether stock, cash, or other
securities or property) received in the merger or sale of assets by holders of Common Stock for each Share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the
holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the merger or sale of assets is not solely common stock of the successor corporation or its Parent, the Administrator may, with the consent
of the successor corporation, provide for the consideration to be received upon the exercise 

  

 11 

 
(or payout or vesting, as applicable) of the Award, for each Share of Awarded Stock subject to the Award, to be solely common stock of the successor
corporation or its Parent equal in fair market value to the per share consideration received by holders of Common Stock in the merger or sale of assets. 
  
 15. Date of Grant. The date of grant of an Award shall be, for all purposes, the date on which the Administrator makes the determination granting
such Award, or such other later date as is determined by the Administrator. Notice of the determination shall be provided to each Participant within a reasonable time after the date of such grant. 
  
 16. Amendment and Termination of the Plan. 
  
 (a) Amendment and Termination. The Board may at any time amend,
alter, suspend or terminate the Plan. 
  
 (b) Shareholder
Approval. The Company shall obtain shareholder approval of any Plan amendment to the extent necessary and desirable to comply with Applicable Laws. 
  
 (c) Effect of Amendment or Termination. No amendment, alteration, suspension or termination of the Plan shall impair the rights of any Participant,
unless mutually agreed otherwise between the Participant and the Administrator, which agreement must be in writing and signed by the Participant and the Company. Termination of the Plan shall not affect the Administrator’s ability to exercise
the powers granted to it hereunder with respect to Options granted under the Plan prior to the date of such termination. 
  
 17. Conditions Upon Issuance of Shares. 
  
 (a) Legal Compliance. Shares shall not be issued pursuant to the exercise of an Award unless the exercise of such Award and the issuance and
delivery of such Shares (or with respect to certain Restricted Stock Units, the cash equivalent thereof) shall comply with Applicable Laws and shall be further subject to the approval of counsel for the Company with respect to such compliance.

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

 12 

 20. Shareholder Approval. The Plan shall be subject to approval by the shareholders of the Company
within twelve (12) months after the date the Plan is adopted. Such shareholder approval shall be obtained in the manner and to the degree required under Applicable Laws. 
  

 13Settlement Agreement

 EXHIBIT 10.16 
  
 NOTE: Information in this document marked with an “[*]” has been omitted and filed separately with the Commission. Confidential
treatment has been requested with respect to the omitted portions. 
  
 SETTLEMENT AGREEMENT 
  
 BETWEEN 
  
 Avanex France, a French company (“société
anonyme”) with a share capital of Euro 15,000,000, with its registered office located at route de Villejust lieudit Villarceaux, 91620 Nozay, France, registered with the Commercial and Companies Registry of Evry under the
number 392 305 652, represented by Mr. Anthony Florence, in his capacity as officer and Chief Governance Officer and Senior VP Corporate Affairs of Avanex Corporation, duly authorized for the purpose hereof, (hereinafter referred to as the
“Company”), 
  
 ON THE ONE HAND, 
  
 AND 
  
 Mr. Philippe Brégi, born on [*], in [*] (France), a French citizen, residing at [*] France, whose social
security number is [*], 
  
 ON THE OTHER HAND, 
  
 WHEREAS: 
  

	A.	Mr. Philippe Brégi has been an employee of the Company since May 30th, 1983 and his last position within the Company was salaried Managing Director (“Directeur Géréal salarié”). 

  

	B.	[*]. 

  

	C.	[*]. 

  

	D.	[*]. 

  

	E.	[*]. 

  

	F.	[*]. 

  

	G.	 For the sake of settling and [*], negotiations were entered into between the parties. After discussion and exchanges of view with respect to their reciprocal
rights, and under the 

 
arbitration of their respective lawyers, the parties decided to definitively end their dispute by a lump-sum settlement, making the mutual concessions set
out below. 
  
 NOW, THEREFORE, IT HAS BEEN AGREED AS FOLLOWS:

  
 This settlement agreement is entered into subject to the condition
precedent of the express approval of the Board of Directors of Avanex Corporation. 
  
 Article 1 
  

	1.1	The parties confirm that Mr. Brégi’s employment agreement will end at the end of his six-month notice period, that is on February 8th, 2005, with the exception of an obligation of reserve and confidentiality with respect to Confidential Information concerning
the Company, which is in his possession, as defined in Article 5 here below. 

  

	1.2	The parties also confirm that Mr. Brégi’s corporate office in his capacity as Managing Director and Officer expired on August 9th, 2004, as well as any other term of office that Mr. Brégi would hold in any other Affiliated Company, and in
particular Photline Technologies. 

  
 Article 2

  

	2.1	The Company shall pay Mr. Philippe Brégi, on the occasion of the termination of his employment agreement, the following amounts: 

  

	 	(i)	an indemnity in lieu of paid notice corresponding to the days paid notice that Mr. Brégi is exempted from working as from August 9th, 2004, that is the net equivalent of the gross amount of Euro 100,000; 

  

	 	(ii)	an indemnity in lieu of paid leave corresponding to 58,2 working days for the period ending of February 8th, 2005, that is the net equivalent of the gross amount of Euro 48,500; 

  

	 	(iii)	a dismissal indemnity payable pursuant to the Applicable Collective Bargaining Agreement of Metallurgical Industry (IC), in a net amount of Euro 205,380; 

 

	 	(iv)	an exceptional bonus of a gross amount of Euro 62,000 for the year 2004. It is therefore expressly agreed between the parties that, due to its exceptional nature, such bonus is not
included in the basis of calculation of the amounts mentioned above in paragraphs (i) to (iii). 

  

	2.2	The gross amount mentioned above in paragraph (i) will be paid monthly at the usual salary due dates. The other accumulated amounts mentioned in paragraphs (ii) and
(iv) in Article 2.1 here above shall be completely paid to Mr. Brégi on the date of execution of this agreement and for (iii) at the end of the exempted notice period, which is on February 8th, 2005. 

  

 -2- 

 By his signature of this agreement, Mr. Brégi gives good and valid receipt for the amounts
paid to him today. 
  
 It is expressly agreed between the parties
that, subject to the performance of the commitments made prior to the execution of this agreement, the amounts mentioned in Article 2.1 hereinabove constitute the whole amounts owed to Mr. Philippe Brégi that may result from the
fulfillment and termination of his employment agreement, as well as for the fulfillment and termination of any term of office, for the Company and any Affiliated Company, with the exception of the settlement indemnity mentioned in Article 3 hereof.

  

	2.3	For the purpose of this settlement agreement, the expression “Affiliated Company” shall mean any company in France and abroad, which directly or indirectly, through one or
several agents holds an interest in the Company, whose Company holds an interest, or is held by a company of Avanex Group. 

  
 Article 3 
  

	3.1	The Company agrees to pay Mr. Brégi an additional lump sum and definitive indemnity of a gross amount of Euro 350,000 as settlement damages, said indemnity being
distinct from any prejudice resulting from any loss of salaries of Mr. Brégi. The payment of this indemnity shall put an end to all disputes of any kind regarding the conditions and reasons for the termination of Mr. Philippe
Brégi’s agreement and shall indemnify Mr. Brégi for all prejudice which he suffers, may suffer or may have suffered due to his dismissal and, in particular, his personal, moral, social and professional prejudice, and due to
the end of his employment agreement. 

  

	3.2	Since the sum of the dismissal indemnity payable pursuant to the Applicable Collective Bargaining Agreement is mentioned in Article 2.1 paragraph (iii) and the settlement
indemnity exceeds the ceiling of income tax and social security contribution exemption as provided in article L.242-1 paragraph 8 of the French Code of Social Security, the excess amount of such sum shall be subject to social security contributions,
the amounts owed as employee’ contributions will be deducted by the Company, which is accepted by Mr. Brégi without reserve. The amount below the taxation thresholds and higher than the dismissal indemnity due pursuant to the
applicable Collective Bargaining Agreement will be subject to CSG and CRDS, whose amount will also be deducted from the Company. 

  

	3.3	The net amount of the settlement indemnity will be totally paid at the end of the exempted notice period, i.e., on February 8th, 2005. 

  

	3.4	For the record, Mr. Philippe Brégi will retain the benefit of all his rights to the employee’s savings scheme (épargne salariale) and the Stock Option
plan currently applicable in the Company and/or any Affiliated Company. 

  
 By the signature of this agreement, Mr. Philippe Brégi acknowledges that the purchase of the options will end on February 8th, 2005. 
  
 Mr. Brégi will be able to exercise the options purchased on such date until May 7th, 2005. 
  

 -3- 

 Mr. Brégi acknowledges being well informed of his situation from the tax and social authority
viewpoint. As such, it is expressly agreed between the parties that each party shall bear the possible social security contributions and taxes payable by each party, based on the option purchase. Mr. Philippe Brégi expressly agrees that
the amount of the employee’s social contributions and other wages taxes to be payable by him could be withheld. In the event a tax withholding might not be carried out, Mr. Philippe Brégi undertakes to refund upon first request of
the Company the amount of the employee’s social contributions and other wages taxes to be legally payable by Mr. Brégi and paid by the Company. 
  

Article 4 
  
 In consideration for the terms and conditions of this settlement agreement and subject to the commitments previously made, Mr. Philippe Brégi
declares that all his rights and claims are hereby fulfilled in their entirety and that he has been completely indemnified on all grounds and in all respects. Mr. Philippe Brégi declares that he no longer has any right, action, demand,
claim and/or pretension to assert against the Company and any of its Affiliated Companies, due to the obligations which existed or could have existed, or which exist or could exist at the date hereof, either directly or indirectly, due to the
performance of any employment and corporate term of office or termination of any employment agreement and corporate office with the Company and/or any Affiliated Companies. 
  
 Article 5 
  

	5.1	Pursuant to the termination of his employment agreement, Mr. Philippe Brégi declares that he returned all the goods and equipment which belong to the Company and/or any
Affiliated Company, including, in particular, the Confidential Information, and undertakes not to use or disclose the Confidential Information for his own account or the account of any person other than the Company and/or any Affiliated Company,
without the prior written approval of the Managing Director (“Gérant”) of the Company. 

  

	5.2	For the purpose of the preceding paragraph, the expression “Affiliated Company” will have the meaning defined in Article 4 hereabove. The expression “Confidential
Information” will have the following meaning: all direct or indirect information brought to Mr. Philippe Brégi’s knowledge in the context of his activities or concerning any activities, administrative and financial management,
technologies (including, in particular, software), products or clients of the Company and/or any Affiliated Company. This information includes but is not limited to (i) product design and development information, (ii) names, addresses,
buying habits and preferences of current customers of the Company as well as prospective customers, (iii) pricing and sales policies, techniques and concepts, (iv) trade secrets and any other information concerning the business operations
and/or affairs of the Company, excluding (i) information generally available to or known to the public, (ii) information previously known to Mr. Philippe Brégi before he was hired, (iii) information independently obtained
by Mr. Philippe Brégi outside the scope of his employment agreement, or (iv) information lawfully disclosed to Mr. Philippe Brégi by a third party. 

  

 -4- 

 Article 6 
  

	6.1	Mr. Philippe Brégi acknowledges that he is completely aware of his situation with respect to the social security bodies, unemployment insurance, and the tax authorities
and declares that these matters could in no event call this agreement into question. Mr. Philippe Brégi declares that he had the necessary time to consider the situation before signing this settlement agreement. More specifically, it is
to be reminded that the payment of such settlement indemnity may be, if Mr. Philippe Brégi is entitled to receive unemployment benefits from the UNEDIC scheme, subject to an indemnification postponement referred to as a waiting period
before payment (“délai de carence”). 

  

	6.2	The parties acknowledge that this settlement agreement is strictly confidential and shall not be disclosed to third parties with the exception of the authorities legally empowered
to be informed hereof and upon their express request. 

  
 Article 7 
  
 Mr. Philippe
Brégi expressly agrees not to criticize, nor circulate any comment or information that may be detrimental to the Company and any company of the Group to which it belongs. 
  
 Reciprocally, the Company expressly agrees not to denigrate nor defame Mr. Philippe Brégi, including in the
event a prospective employer would get in touch with the Company. 
  
 Article 8 
  
 In the event Avanex France
would not be able to pay the amounts owed by the Company to Mr. Philippe Brégi for any reason whatsoever, and in particular through the performance hereof, Avanex Corporation undertakes to pay such amounts on the dates provided hereof
and to comply with the social obligations arising out of them (including, without limitation the payment of the social contributions). 
  
 Article 9 
  
 This agreement constitutes a settlement agreement and shall have unappealable res judicata effect in accordance with Articles 2044 et seq.
of the French Civil Code. 
  

 -5- 

			
	 Signed in Paris
 On August 24th, 2004
 In two originals
	  	 
		
	 /s/ ANTHONY FLORENCE

	  	 /s/ PHILIPPE BRÉGI

	 For the Company
 By Mr. Anthony Florence
 Officer of Avanex France and
 VP Avanex Corporation
	  	 Mr. Philippe Brégi

  
 (Please precede signatures with the
hand-written words: <<Bon pour transaction forfaitaire et définitive selon les termes ci-dessus. [“Valid for a definitive lump-sum settlement according to the above terms”]. 
  
 Please also precede Mr. Philippe Brégi’s signature by the hand-written
words: “Bon pour quittance des sommes visées dans le corps des présentes. Bon pour désistement et renonciation à toute instance et action >>. [<<Valid for release concerning the sums referred to
herein. Valid for release from and waiver of any cause of action>>]. 
  

 -6-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}]]