Document:

exv10w2

 

Exhibit 10.2

AWARD AGREEMENT

      This Award Agreement (“Agreement”) is made as of May ___, 2005 between Centex Corporation, a
Nevada corporation (the “Corporation”), and ___(the “Participant”) under the
stockholder-approved Centex Corporation 2003 Annual Incentive Compensation Plan (the “Incentive
Plan”) and the stockholder-approved Centex Corporation 2003 Equity Incentive Plan (the “Equity
Plan” and, together with the Incentive Plan, the “Plans”), and sets forth the terms, conditions and
limitations applicable to an Award to the Participant relative to fiscal year 2006.

      This Agreement is subject to the Plans (which may be amended from time to time), and the Plans
will govern where there is any inconsistency between the Plans and this Agreement. The provisions
of the Plans are also the provisions of this Agreement, and all terms, provisions and definitions
set forth in the Plans are incorporated into this Agreement and made a part of this Agreement for
all purposes. Capitalized terms used and not otherwise defined in this Agreement have the meanings
ascribed to such terms in the Plans.

      The maximum cash Award that may be paid to the Participant for fiscal year 2006 is two percent
(2%) of the reported net income of the Corporation and its subsidiaries for such fiscal year. The
maximum equity award that may be paid or issued to the Participant for fiscal year 2006 is the
amount specified in the Equity Plan. The actual equity to be granted pursuant to this Award may be
granted under the Equity Plan or other stockholder-approved equity plan of the Corporation.
Attached hereto is a chart that describes the short-term and long-term performance goal or goals
applicable to this Agreement and the percentage of the maximum Award to be paid, depending on what
level(s) of the performance goal(s) is or are achieved during fiscal year 2006. Further, if the
net earnings from continuing operations are less in fiscal year 2006 than the preceding fiscal
year, any cash bonus earned under this chart will be subject to the approval of the Compensation
and Management Development Committee and the Board of Directors of the Corporation. The
Corporation acknowledges that the operating results of Centex Corporation and its subsidiaries
during fiscal year 2006 are substantially uncertain, and, accordingly, it is substantially
uncertain whether the performance goal(s) will be satisfied during fiscal year 2006.

      Payment of an Award will be made to the Participant following the conclusion of fiscal year
2006, upon the conditions that the performance goal or goals specified herein have been achieved
and the Committee has reviewed and approved the Award. No Award will be granted to a Participant
who is not employed by the Corporation on the last day of the fiscal year, unless otherwise
specified by the Committee.

	 	 	 
	CENTEX CORPORATION

	 	PARTICIPANT
	 
	 	 
	 
	 	 
	By:exv10w3

 

Exhibit No. 10.3

Summary of Outside Director Compensation

      Each outside director of Centex Corporation will receive the following compensation for his or
her services as a director:

      • The compensation package consists of annual compensation having a value of
$300,000. No separate meeting fees will be payable for attending board and committee meetings.

      One-third of the annual compensation amount will be paid in the form of cash, payable in
monthly installments.

      One-third of the annual compensation amount will be paid in the form of restricted stock,
to be issued at the beginning of the Board year commencing immediately after the annual meeting
of stockholders. Restricted stock awards will vest immediately but will be subject to certain
restrictions set forth in the Plan and the award agreement. Generally, the restrictions will
lapse three years after the anniversary of the date of grant. The restrictions will terminate
immediately upon the director’s retirement, death or disability or upon a change in control.
These restricted stock awards to directors will be made under the Corporation’s
stockholder-approved Amended and Restated Centex Corporation 2003 Equity Incentive Plan and the
terms of restricted stock award agreements.

      One-third of this annual compensation amount will be paid in the form of stock options, to
be granted at the meeting of the Compensation and Management Development Committee of the Board
of Directors held in the May after the fiscal year for which the options are granted. The
number of shares of common stock subject to these awards will be determined based on the
Black-Scholes valuation methodology as of the date of grant. Options granted to directors will
vest upon grant. These stock option awards to directors will be made under and pursuant to the
Corporation’s stockholder-approved Amended and Restated Centex Corporation 2001 Stock Plan and
the terms of stock option award agreements.

      Directors joining the Board during a Board year or fiscal year, as the case may be, will
receive a pro-rata portion of the compensation based upon the effective date of their election
to the Board.

      • The chairperson of the Audit Committee will receive additional compensation of
$25,000, payable in monthly installments. The chairperson of each of the Compensation and
Management Development Committee and the Corporate Governance and Nominating Committee will
receive additional compensation of $15,000, payable in monthly installments.

      • The lead director will receive additional compensation of $25,000, payable in
monthly installments.

      • Directors will be entitled to other compensation pursuant to existing plans in
which they are eligible to participate, including group medical insurance.exv10w1

 

Exhibit 10.1

Confidential Materials omitted and filed separately with the

Securities and Exchange Commission. Asterisks denote omissions.

Nortel Agreement No:

Addendum

to

Optical Components Supply Agreement

This Addendum, including attached exhibits, (the “Agreement”) dated the 7th day of February, 2005,
(the “Effective Date”) is made between Nortel Networks Limited, a Canadian corporation with offices
located at 8200 Dixie Road, Suite 100, Brampton, Ontario L6T 5P6 (“NNL”) and Bookham Technology plc
a company incorporated under the laws of England and Wales with office located at Towcester,
Northamptonshire, NN12 8EQ, United Kingdom ( “Supplier” and, together with NNL, the “Parties”);

WHEREAS:

	 	1.  	NNL and Supplier entered into an Optical Components Supply
Agreement effective November 8, 2002 (the “Supply Agreement”);
	 
	 	2.  	NNL wishes to ensure the security of supply for certain Products
(as defined below);
	 
	 	3.  	Supplier has agreed to take certain steps to secure the supply of
Products to Nortel;
	 
	 	4.  	The Parties have agreed to amend and supplement the Supply
Agreement;

NOW, THEREFORE, in consideration of the premises and promises set forth herein, and the execution,
simultaneously with this Agreement, of the Notes Amendment and Waiver Agreement and other good and
valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the Parties
agree as follows:

Definitions and Interpretation

	1.1  	Definitions. Except as otherwise defined herein, the defined terms used in this Agreement
will be as defined in the Supply Agreement.

	 	1.1.1  	“Alternate Suppliers” has the meaning set out in Exhibit D Section 2.5.
	 
	 	1.1.2  	“CPW Build Price” has the meaning set out in Section 3.2.
	 
	 	1.1.3  	“CPW Price” has the meaning set out in Section 3.3.
	 
	 	1.1.4  	“Critical IP” means the [**].

 

 

	 	1.1.5  	“Critical Products” mean the Products identified as Critical in Exhibit B attached
here to.
	 
	 	1.1.6  	“Critical Product Wafer” means the wafers identified in Exhibit C attached hereto.
	 
	 	1.1.7  	“First Trigger: has the meaning set out in Exhibit D – Section 2
	 
	 	1.1.8  	“LTB Schedule” has the meaning in Section 2.1.
	 
	 	1.1.9  	“LTB Products” has the meaning in Section 2.1.
	 
	 	1.1.10  	“Product” means Critical Products, LTB Products and Sole Sourced Products.

	 
	 	1.1.11  	“Second Trigger” has the meaning set out in Exhibit D – Section 3
	 
	 	1.1.12  	“Series A-2 Note” means the Series A-2 Note as defined in the Notes Amendment and Waiver
Agreement.
	 
	 	1.1.13  	“Series B-1 Note” means the Series B-1 Note as defined in the Notes Amendment and Waiver
Agreement.
	 
	 	1.1.14  	“[**] Products” means the products and Products listed as such in Exhibit B hereto,
including the Critical Products. [**] such products, [**] such relevant product will be
[**]. For the purposes of clarity [**] pursuant to the Grant of Rights in Exhibit D [**].

1.2 Interpretation

	 	1.2.1  	This Agreement amends and supplements to the Supply Agreement. To the extent there
is a conflict between the terms of this Agreement and the Supply Agreement, this Agreement
shall govern. Unless modified by the terms of this Agreement, the Supply Agreement shall
remain unchanged.
	 
	 	1.2.2  	Nothing contained in this Agreement negates the Supply Agreement and its ongoing
force and effect with respect to the content thereto.

	2.0  	Last Time Buy

	2.1  	Supplier has advised that it intends to discontinue manufacturing the Products listed on
Exhibit A attached hereto (“LTB Products”). The Parties have agreed to a schedule for the
production and delivery of the LTB Products as set out in Exhibit A (the “LTB Schedule”).
Nortel agrees to purchase the product identified in the final detailed LTB Schedule as
Supplier manufactures and delivers such product and not solely as in accordance with the
delivery schedule. Nortel shall have no obligation to purchase quantities of product in excess
of the total aggregate quantities for each product as set out in the final detailed LTB
Schedule to be provided within 2 weeks of the Effective Date. Supplier agrees that it will
supply LTB Products to meet Nortel’s requirements as set out in the LTB Schedule,
notwithstanding the provisions of Section 15.2 of the Supply Agreement with respect to
production capacity. The Prices of the LTB Products shall be as set out in Exhibit A. Nortel
may designate Nortel Affiliates to purchase the LTB Product and Supplier agrees to sell the
LTB Product to such Nortel Affiliates.

 

 

	2.2  	In event the Supplier fails to meet a milestone for an LTB Product by more than 10%, for
3 consecutive weeks and does not fully rectify such failure within 30 days of its occurrence, the LTB Product
shall be deemed to be a Critical Product and immediately become subject to the provisions
Section 5 the Grant of License and Exhibit D.

	2.3  	The parties acknowledge that the LTB Schedule contains, as of the Effective Date, the
following variables: (i) Nortel has [**]; (ii) Nortel has [**] as of the Effective Date.

	2.4  	Nortel will provide a final detailed LTB Plan setting out final LTB Product quantities and
LTB Product mix (as described in 2.3) within 14 days of the Effective Date. The parties agree
that the quantities in the LTB Plan will not increase, but may decrease, from the quantities
as of the Effective Date.

	2.5  	The parties further agree that Supplier shipments of product during the entire month of
February will be counted towards its LTB Plan obligations pursuant to an existing last time
buy purchase order . In addition, the parties agree that Supplier shipments of SiV product
during the months of January and February will be counted towards its LTB Plan obligations
pursuant to an existing last time buy purchase order.

	2.6  	Intentionally Deleted.

 

 

	3.  	Wafer Build and Inventory

	3.1  	Supplier agrees to increase capacity for, and produce the wafers for, the Critical Products
(“Critical Product Wafers”), as described in Exhibit C, to meet Nortel’s requirements. The
Parties have agreed on a plan, as set out in Exhibit C, to meet Nortel’s requirements for
Critical Product Wafers (the “CPW Plan”).

	3.2  	To the extent Nortel requires Supplier to build an inventory of Critical Product Wafers,
Nortel will issue a Purchase Order to Supplier setting out the quantities of the Wafers and
the price. The parties agree that the price to build and hold in inventory the Critical
Product Wafers will be [**] as described in Exhibit E (“CPW Build Price”). Nortel will have
the right to reasonably request and Supplier will provide documentation [**]. Payment of the
CPW Build Price will be payable monthly [**] as the wafers are placed into inventory. Title
to the Critical Product Wafers will transfer to Nortel or the Alternate Supplier upon payment
of the CPW Price. Within [**] of the Effective Date Nortel will provide Bookham a plan for use
or disposition of the Critical Product Wafers held pursuant to the CPW Plan.

	3.3  	Supplier agrees that it will hold the Critical Product Wafers in inventory for Nortel’s
benefit, in a segregated area, [**]. The Purchase Order for the Critical Product Wafers,
shall specify whether the Supplier is required to coat, dice and/or assemble to “chip on
carrier” level, prior to delivery. The total price to Nortel of the Critical Product Wafers
is described in Exhibit E (the “CPW Price”). The parties agree that any prior payment by
Nortel of the CPW Build Price will be credited against any payable CPW Price amounts. [**].
The parties also agree that in the event Supplier uses Critical Product Wafers for the
purposes of manufacturing Critical Product for Nortel, Supplier will provide a credit to
Nortel on the Critical Product Price for any CPW Build Price or CPW Price previously paid by
Nortel.

	3.4  	In the event Nortel’s demand for the Critical Product Wafers would require Supplier to
increase its capital equipment to meet such demand in the agreed time period, Nortel may, at
its option, offer to supply additional capital equipment, on terms to be agreed, or extend the
time period for meeting its demand.

	3.5  	Supplier will reasonably assure the good quality of the Critical Product Wafers using its
standard manufacturing processes. For example Supplier will utilize wafer level process
control monitors, SPC and monitor on going product reliability and performance through wafers
processed for current production requirements. If process indicators suggest potential quality
issues with a Critical Product Wafer, such wafer shall not be put in inventory on Nortel’s
behalf, and Nortel shall not be required to pay for same. During Critical Product Wafer
manufacturing Bookham will perform the additional quality assurance tests and protocols as
described in Exhibit F.

	3.6  	The Critical Product Wafer will be subject to indemnifications rights and obligations as set
out in the Supply Agreement.

 

 

	3.7  	Supplier warrants that :

	 	3.7.1  	Critical Product Wafers shall, at the actual delivery date, be new and free and
clear of all security interests or other liens or any other encumbrances;
	 
	 	3.7.2  	Critical Product Wafer shall be free from any defect in materials or workmanship, or
any other condition, which causes the dye of Critical Product Wafers to fail to conform to
and operate in accordance with the final product Specifications, provided such wafers are
stored, handled, has passed testing and used in accordance with professional standards and
any written instructions provided by Supplier to Nortel;
	 
	 	3.7.3  	Critical Product Wafers furnished by Supplier, and used in accordance with
professional standards and any written instructions provided by Supplier to Nortel, are
safe for normal use, are non-toxic, present no abnormal hazards to persons or their
environment, and may be disposed of as normal refuse without special precautions.

	3.8  	The parties will meet quarterly to review the CPW Plan.

	 	3.8.1  	At the time of such quarterly meeting, Nortel may cancel the Supplier build against
the CPW Plan by up to [**]% provided [**] prior written notice is given to Supplier and
may cancel the remaining [**]% of the Critical Product Wafers upon [**] notice, without
any further liability or obligations .
	 
	 	3.8.2  	At the time of such quarterly meeting, Nortel may request a volume increase and/or a
change in the product or wavelength mix of Critical Product Wafers. Supplier and Nortel
shall mutually agree on any such product or wavelength mix changes or volume increases. In
the event Supplier agrees, any such changes will only be implemented [**] after such
agreement.

	4.0  	Inventory and Capacity

	4.1  	In the event of the Second Trigger:

a) Nortel will have the right to purchase and Supplier agrees to sell to Nortel, any finished
goods inventory or work in progress associated with products and Products supplied under the
Supply Agreement, for which Supplier does not have a binding contractual obligation to sell to
other customers. The price attributable to the work in progress inventory will be a
percentage of the Product Price based on the level of completion of the inventory;

b) Provided Nortel issues binding purchase orders to consume the output of such allocation as
it becomes available and subject to Supplier’s binding contractual obligations to its other
customers, Supplier shall allocate production, manufacturing, assembly and/or testing capacity
to Nortel, equivalent to Nortel’s demand for

 

 

products and Products supplied under the Supply Agreement, on a product family basis, from the
previous financial quarter.

	5.  	Grant of License

	5.1  	In addition to, and not in substitution for, the License granted in Section 29 of the Supply
Agreement the Parties have agreed to an additional grant of License as set out in Exhibit D.

	6.0  	Inspection Rights

	6.1  	Nortel may inspect Supplier’s facilities, Products and/or Critical Product Wafers during the
facilities’ regular business hours to assess Supplier’s ability to meet milestones and comply
with the terms of this Agreement. Nortel will give reasonable advance notice of any
inspection. However, Nortel must give at least 2 days advance notice to inspect a
manufacturing facility and/or operations facilities. At Nortel’s expense, Supplier will
provide whatever is reasonably required by Nortel to perform its inspection. Nortel may
perform a quality assurance inspection of Supplier’s manufacturing and/or operations
facilities, if Nortel does not unreasonably interfere with Supplier’s normal day-to-day
operations. If in Nortel’s reasonable opinion Supplier is unlikely to meet a milestone set out
in the LTB Schedule or CPW Plan, at Nortel’s request, the Parties will hold regularly
scheduled update meetings to report on the status of the milestones but not less than monthly.

	7.0  	Remedies

	7.1  	In addition to any other rights and remedies Nortel may have in law or equity, in the event
of an “Prepayment Event” described in Exhibit G a prepayment under the Series B-1 Note and
Series A-2 Note will become exercisable by Nortel.

	8.0  	Termination

	8.1  	With the exception of Exhibit D which shall terminate in accordance with Exhibit D, Section
6, this Agreement shall terminate upon the expiry of the Renewal Term of the Supply Agreement
referred to in Section 9.8 below.

	9.0  	General

	9.1  	This Agreement may be executed in counterparts, each of which shall be deemed an original,
but both of which together shall constitute one and the same instrument. A faxed signature
shall have the same legally binding effect as an original signature. The section headings
contained in this Agreement are for reference purposes only and shall not affect the meaning
of this Agreement.

	9.2  	If any provision of this Agreement is determined to be legally unenforceable or invalid, the
remaining provisions will continue in effect. The parties will substitute a provision that
most closely approximates the economic effect and intent of the invalid provision.

 

 

	9.3  	Neither party will assign or transfer this Agreement, or its rights or obligations, without
the prior written consent of the other party. Consent will not be unreasonably withheld or
delayed. However, Nortel may assign or subcontract its rights or obligations under this
Agreement to a Subsidiary without Supplier’s consent or to a person or entity to which Nortel
has seceded all or substantially all of its business and assets to which this Agreement
relates.

	9.4  	Unless waived and agreed in writing by the parties, no action or inaction by a party under
this Agreement will constitute a waiver of a party’s rights or obligations under this
Agreement.

	9.5  	Under this Agreement Supplier is an independent contractor. This Agreement does not create a
joint venture, partnership, principal-agent or employment relationship between Supplier and
Nortel.

	9.6  	All exhibits attached to this Agreement are also incorporated herein.

	9.7  	All written communication concerning this Agreement or amendments or restatements of this
Agreement will be in the English language.

	9.8  	The Parties agree to renew the Supply Agreement for a further one year term (“Renewal Term”).
For the purposes of clarity the provisions of Sections 2.1 (Share Allocations and Minimum
Commitment);2.2 (Target Allocations); and 3.4 (Preferred Supplier Status) shall not apply
during the Renewal Term.

	9.9  	During the Renewal Term, Bookham’s supplier status will be determined in accordance with
ongoing ratings under Nortel’s Supplier Business Engagement Model. As of the Effective Date
of this Agreement, Supplier met the requirements for Strategic Supplier Status.

 

 

	9.10  	The validity, construction, interpretation and performance of this Agreement and the rights
and obligations of the Parties and any purchase made hereunder shall be governed by the laws
of the State of New York, without regard to its rules with respect to the conflict of laws.
The application of the U.N. Convention on Contracts for the International Sale of Goods is
specifically excluded from this Agreement.

	9.11  	Section headings are inserted herein for convenience only and shall not affect the meaning or
interpretation of this Agreement or any provision hereof.

          IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed by their duly
authorized representatives to be effective as of the Effective Date defined herein.

	 	 	 
	NORTEL NETWORKS LIMITED

	 	BOOKHAM TECHNOLOGY PLC
	 
	 	 
	By: /s/ John Haydon

	 	By: /s/ Steve Abely
	Printed Name: John Haydon

	 	Printed Name: Steve  Abely
	Title: Global Supply Management

	 	Title: Director
	Date: February 6, 2005

	 	Date: February 7, 2005

 

 

Exhibit A

Last Time Buy Plan Summary

Exhibit A

LTB Schedules

-Unit Volumes

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	

	 	Unit
	 	Total
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Assumptions/
	Product

	 	Price
	 	Volume
	 	March
	 	April
	 	May
	 	June
	 	July
	 	August
	 	Sept
	 	Oct
	 	Nov
	 	Dec
	 	Jan
	 	Feb
	 	Mar
	 	Apr
	 	May
	 	June
	 	July
	 	Conditions
	 

Confidential Materials deleted and filed separately with the Securities and Exchange Commission.

 

 

Exhibit A-1

LTB Product Wavelengths

Exhibit A-1

LTB HP laser product wavelengths

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	Module	 	 	 	 	 	 
	 	 	 	 	equivalent	 	CW Stock	 	 	Total	 
	 	 	 	 	 	 	 	 	 
	 	HP Channel	 	 	 	 	 	 	 	 	 
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Exhibit A-1

LTB HP laser product wavelengths

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	Module	 	 	 	 	 	 
	 	 	 	 	equivalent	 	CW Stock	 	 	Total	 
	 	 	 	 	 	 	 	 	 
	 	HP Channel	 	 	 	 	 	 	 	 	 
	 	[**]
	 	 	[**]
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Exhibit A-1

LTB HP laser product wavelengths

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	Module	 	 	 	 	 	 
	 	 	 	 	equivalent	 	CW Stock	 	 	Total	 
	 	 	 	 	 	 	 	 	 
	 	HP Channel	 	 	 	 	 	 	 	 	 
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	 	Total
	 	 	[**]
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Exhibit B

Critical Products and Sole Source Product

	 	 	 	 	 	 
	 
	 	Critical Products	 	 	Sole Source Products	 
	 	[**]

	 	 	[**]	 
	 	[**]

	 	 	[**]	 
	 	[**]

	 	 	[**]	 
	 	[**]

	 	 	[**]	 
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	 	 	[**]	 
	 	[**]
	 	 	 	 
	 

 

 

Exhibit C

Critical Product Wafers and CPW Plan

Critical Product Wafer Plan

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Modules	 	 
	 	Wafer Output	 	 	Quarter 1	 	 	 	Quarter 2	 	 	 	Quarter 3	 	 	 	Quarter 4	 	 	 	Qtr 5	 	 	 	Qtr 6	 	 	 	Qtr 7	 	 	 	 	 	 	 	 	Equivalent	 	 
	 	        Plan	 	 	1	 	 	2	 	 	3	 	 	 	4	 	 	5	 	 	6	 	 	 	7	 	 	8	 	 	9	 	 	 	10	 	 	11	 	 	12	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Total	 	 	 	Planned	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Start Up
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Leadtime 1st Wafers
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[**]	 	 	 	 	 	 	 	[**]	 	 	 	 	[**]	 	 	 	[**]	 	 	 	[**]	 	 	 	 	[**]	 	 	 	[**]	 	 	 	[**]	 	 	 	 	[**]	 	 	 	 	[**]	 	 	 	 	[**]	 	 	 	 	[**]	 	 	 	 	[**]	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[**]	 	 	 	 	 	 	 	[**]	 	 	 	 	[**]	 	 	 	[**]	 	 	 	[**]	 	 	 	 	[**]	 	 	 	[**]	 	 	 	[**]	 	 	 	 	[**]	 	 	 	 	[**]	 	 	 	 	[**]	 	 	 	 	[**]	 	 	 	 	[**]	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[**]	 	 	 	 	 	 	 	[**]	 	 	 	 	[**]	 	 	 	[**]	 	 	 	[**]	 	 	 	 	[**]	 	 	 	[**]	 	 	 	[**]	 	 	 	 	[**]	 	 	 	 	[**]	 	 	 	 	[**]	 	 	 	 	[**]	 	 	 	 	[**]	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[**]	 	 	 	 	 	 	 	[**]	 	 	 	 	[**]	 	 	 	[**]	 	 	 	[**]	 	 	 	 	[**]	 	 	 	[**]	 	 	 	[**]	 	 	 	 	[**]	 	 	 	 	[**]	 	 	 	 	[**]	 	 	 	 	[**]	 	 	 	 	[**]	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[**]	 	 	 	 	 	 	 	[**]	 	 	 	 	[**]	 	 	 	[**]	 	 	 	[**]	 	 	 	 	[**]	 	 	 	[**]	 	 	 	[**]	 	 	 	 	[**]	 	 	 	 	[**]	 	 	 	 	[**]	 	 	 	 	[**]	 	 	 	 	[**]	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[**]	 	 	 	 	 	 	 	[**]	 	 	 	 	[**]	 	 	 	 	 	 	 	[**]	 	 	 	 	[**]	 	 	 	 	 	 	 	[**]	 	 	 	 	[**]	 	 	 	 	[**]	 	 	 	 	[**]	 	 	 	 	[**]	 	 	 	 	[**]	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Total	 	 	 	 	 	 	[**]	 	 	 	 	[**]	 	 	 	[**]	 	 	 	[**]	 	 	 	 	[**]	 	 	 	[**]	 	 	 	[**]	 	 	 	 	[**]	 	 	 	 	[**]	 	 	 	 	[**]	 	 	 	 	[**]	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	Conditions of Wafer Output Plan
	 
	1.	 	[**]
	 
	2.	 	[**]
	 
	3.	 	[**] on the following basis
	 
	 	 	[**]
	 
	 	 	[**]

 

 

Exhibit D

GRANT OF LICENSE

Section 1

1.1 Subject to Sections 2 and 3 below, Supplier, to the extent of its legal right so to do, hereby
grants to Nortel a personal, non-transferable, non-assignable, indivisible, non-exclusive,
irrevocable, worldwide license (including a license to any required intellectual property rights)
to: (1) make and have made those Products, (2) incorporate and combine Products with Nortel’s
products, (3) sell, distribute and support Products incorporated with Nortel’s products and (4) use
the Product Technical Information and Process Technical Information to manufacture, support and
repair Products as provided in this grant of license. Supplier will provide technical assistance in
conjunction with this license at commercially reasonable rates.

Section 2.

2.1 In the event the Cash Balance (as defined in the Series A-2 Note and Series B-1 Note Supplier)
is less than $25 million U.S. dollars (the “First Trigger”) or Supplier to a material degree is unable
to manufacture or supply Critical Products, in accordance with the terms of this Agreement or the
Supply Agreement, for a continuous period of not less than six (6) weeks except for the eAPBE Products which
shall become subject to this requirement only when it achieves ‘General Availability’ status (the
“Supply Failure”) or in the event Supplier is the subject of a petition or assignment in
bankruptcy, or files a notice of intention to make a proposal, under applicable bankruptcy laws or
other similar laws (including laws related to corporate restructuring or reorganization); or
Supplier is subject to the appointment of a trustee, custodian, receiver, or receiver-manager of
itself or of any substantial part of its assets; or Supplier makes an assignment, or enters into an
arrangement with or for the general benefit of its creditor (the “Insolvency Trigger’) then the
license in Section 1 will become exercisable BUT shall only apply to the Critical IP. For clarity,
in the event the license is exercisable due to the Supply Failure the license will only be
exercisable for the specific Critical Product(s) which are the cause or subject of the Supply
Failure.

2.2 NNL will give written notice to Supplier prior to exercising its license under Section 2.1.

2.3 Within [**] after the Effective Date, Supplier will, on a preliminary basis, identify to Nortel
an alternate supplier (or suppliers) for the Assembly, Packaging & Test aspects, as well as the
post wafer processing techniques, of the Critical Products (the “Alternate Supplier”). If Nortel
does not approve of the Alternate Supplier proposed by Supplier, Supplier will propose a different
Alternate Supplier within five (5) business days of Nortel’s rejection. If the parties cannot agree
on the Alternate Supplier, working reasonably and in good faith, then Nortel may choose the
Alternate Supplier, Nortel

 

 

would not be restricted and no consent would be required from Supplier to use a Prohibited
Manufacturer. In addition, within [**] after the Effective Date, Supplier and Nortel will in good
faith negotiate and agree on a form of confidentiality and license agreement which will be used as
the basis for an agreement with Alternate Supplier under which Products could be manufactured for
Nortel. Such agreement will be substantially similar to the form agreed between Supplier and
Nortel. The confidentiality and licensing agreement shall include, without limitation, termination
rights and reasonable audit rights provisions in favour of Supplier, will name Supplier as a third
party beneficiary to such agreement and provide for future audits of operations by an independent
auditor to verify compliance with the confidentiality and license agreement.

2.4 Prior to [**], Supplier shall collect and deposit into an escrow, maintained by a mutually
agreeable escrow agent on mutually agreeable terms, the copies of all documents relating to the
Critical IP. These would be released to Nortel upon the First Trigger, Supply Failure (to the
extent applicable) or Insolvency Trigger. The escrow agreement will include, without limitation, a
right for Nortel to verify the content of the deposit materials and to request further information
if the deposited information is not sufficient to enable Nortel to assemble, package and test the
Critical Products. The Parties agree to work together to identify counsel of a major Canadian law
firm in Ottawa to act as escrow agent.

2.5 In the event the license becomes exercisable under Section 2.1, then the parties will enable,
at Nortel’s cost and Supplier’s reasonable assistance, the Alternate Supplier with the Critical IP
(the “Alternate Supplier License”). Such Alternate Supplier shall sign a confidentiality and
license agreement substantially similar to the form agreed to by the parties.

2.5.1 Critical Product Wafers for use in the Critical Products being manufactured by the
Alternate Supplier shall be purchased from Supplier at the CPW Price.

2.5.2 If Nortel determines that the performance of the Alternate Supplier is inadequate,
then Nortel may, at its cost and without Supplier assistance, transfer to a different
supplier of its choice.

Section 3

3.1 In the event the Cash Balance is less than $10 million U.S. dollars (the “Second Trigger”) or the
Insolvency Trigger, then the license in Section 1 will become exercisable BUT shall only apply to
Sole Sourced Products, but excluding LTB Products unless deemed to be a Critical Product.

3.2 Nortel will give written notice to Supplier prior to exercising its license under Section 3.1.

 

 

3.3 Nortel may elect to have any third party manufacturer manufacture the Sole Sourced Products.
Nortel is not restricted from using, and no consent would be required from Supplier to use, a
Prohibited Manufacturer to manufacture Sole Sourced Products. As a condition precedent to
providing any of such Product and Process Technical Information to a third party manufacturer, such
third party manufacturer shall sign a confidentiality and license agreement substantially similar
to the form agreed to by the parties.

3.4 Prior to the Cash Balance reaching $10 million US dollars, Supplier shall collect and deposit into an
escrow, maintained by a mutually agreeable escrow agent on mutually agreeable terms, the copies of
all documents relating to the Product Technical Information and Process Technical Information
SOLELY as it relates to the Sole Sourced Products (“Sole Source IP”). These documents would be
released to Nortel upon the Second Trigger or Insolvency Trigger.

Section 4

4.1 Supplier shall have the right upon not less than [**] prior written notice to have an
independent qualified auditor, reasonably acceptable to both Parties examine, not more than twice
per year, review the relevant books and records of Nortel to verify compliance with the provisions
of the above sections. Supplier will be responsible for the cost of any such audit, unless Nortel
is in breach of these Sections, in which case Nortel will reimburse Supplier for the cost of such
audit.

Section 5 Cure

5.1 In the event the license becomes exercisable under sections 2 or 3, Nortel’s ability to
exercise the license will terminate, together with any Alternate Supplier License, 24 months from the
date the license first became exercisable PROVIDED that at the end of such 24 months (i) Supplier has
the ability to meet Nortel’s demand for the subject Products; (ii) Supplier’s Cash Balance is above
$25 million U.S. dollars and, where applicable, (iii) to the extent that Nortel has obtained the license
rights hereunder as a result of the occurrence of an Insolvency Trigger, upon the earliest to occur
of any of the following: (A) the dismissal of proceedings pursuant to applicable Insolvency Law,
(B) the discharge, termination or relief from appointment of any trustee, custodian, receiver, or
receiver-manager appointed with respect to the Company (or of any substantial part of its assets)
under applicable Insolvency Law, (C) the entry of an order by a court of competent jurisdiction
adopting a plan of reorganization under applicable Insolvency Law or (D) the completion of an
assignment for the benefit of creditors that substantially maintains the business of the Company
immediately prior to such assignment. In the event Supplier has not satisfied (i) and (ii) (and
(iii) where applicable), the license will continue until such time as Supplier satisfies these
conditions.

5.2 Provided: i) Supplier is not in breach of a material provision of this Agreement or the Supply
Agreement which affects or which is anticipated to affect such Product, which breach remains
uncured; and ii) Supplier remains competitive with its competitors on the

 

 

basis of Product price, Product performance, quality (return rate), delivery and customer service
level with respect to such Product: , and subject to Supplier’s ability to meet and fulfill
Nortel’s demand of Product, Supplier shall remain Nortel’s Primary Supplier of the Products during
the period between triggering an exercisable event and the expiry of Nortel’s ability to exercise
the license in accordance with section 5.1. Primary Supplier shall mean that Supplier receives more
than [**]% of the actual allocation it was receiving at the time of the exercisable event of
Nortel’s business for the Products. Notwithstanding the foregoing, Nortel will have the right to
adjust the Share Allocations in order to establish a second source where, using Supplier’s
financial data, it is reasonably foreseeable that the Second Trigger will occur within the lead
times such second source would require to increase capacity in order for Nortel to ensure security
of supply of the Products. During the Term of the Supply Agreement, for the purposes of the Share
Allocations and Target Allocations, Nortel will be deemed to have purchased from Supplier the value
of the Product purchased from an Alternate Supplier.

Section 6 Expiry

6.1 The terms of this Exhibit D “Grant of License” and the rights granted herein shall terminate
24 months from the Effective Date unless the license in Section 1 becomes exercisable during such
period. Should the license in Section 1 become exercisable the license shall continue until such
time as the license may terminate in accordance with Section 5.

 

 

Exhibit E

Critical Product Wafer Pricing

	 	 	 	 	 	 	 	 	 
	 
	 	Critical Product Wafer	 	 	CPW Build Price	 	 	CPW Price	 
	 	[**]
	 	 	$[**]	 	 	$[**]	 
	 	[**]
	 	 	$[**]	 	 	$[**]	 
	 	[**]
	 	 	$[**]	 	 	$[**]	 
	 	[**]
	 	 	$[**]	 	 	$[**]	 
	 	[**]
	 	 	$[**]	 	 	$[**]	 
	 

 

 

Exhibit F

Quality Assurance Monitoring and Testing to be Performed on Critical Product Wafers

[**]

[**]

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[**]

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[**]

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Measurements provide necessary controls for the material to be representative of other fully
verified product which is processed for order requirements during the same timeframe.

 

 

Exhibit G

Note Prepayment Events

The First Prepayment Event shall become exercisable in the event: (i) the Supplier fails to deposit
copies of substantially all, and all material, documents relating to the Critical IP in accordance
with Section 2.4 of Exhibit D on or before March 31, 2005, and (ii) the Supplier has not cured the
breach on or before April 30, 2005.

The Second Prepayment Event shall become exercisable in the event: (i) the Supplier fails to
deposit copies of substantially all, and all material, documents relating to the Sole Source IP in
accordance with Section 3.4 of Exhibit D prior to the Supplier’s Cash Balance falling below $10 million,
and (ii) the Supplier has not cured the breach on or before the day [**] after the day Supplier’s
Cash Balance falls below $10 million.

In the event the First Prepayment Event is made, the amount of the Second Prepayment Event shall be
reduced to $0.5M

The Third Prepayment Event shall become exercisable be in the event that: (i) by end of Supplier’s
fiscal April 2005 Supplier has not achieved 90% delivery on the total value represented by the LTB Plan
requirements, as may be modified by the parties, as of end of Supplier’s fiscal April 2005; and
(ii) by [**] Supplier has not (a) cured such deficiency by having established a minimum of 90%
delivery on the total value represented by the LTB Plan requirements, as may be modified by the
parties, as of end of Supplier’s fiscal April 2005 and (b) achieved 90% delivery on the total value of
the LTB Plan requirements, as may be modified by the parties, as of [**].

The Fourth Prepayment Event shall become exercisable in the event that: (i) by end of Supplier’s
fiscal August 2005; Supplier has not achieved [**]% delivery on the total value represented by the LTB Plan
requirements, as of August 31, 2005 and (ii) by [**] Supplier has not (a) cured such deficiency by
having established a minimum of 75% delivery on the total value represented by the LTB Plan
requirements, as may be modified by the parties, as of end of Supplier’s fiscal August 2005 and (b)
achieved 75% delivery on the total value of the LTB Plan requirements, as may be modified by the
parties, as of [**].

The Fifth Prepayment Event shall become exercisable in the event that: (i) by end of Supplier’s
fiscal July 2005 Supplier has not achieved 90% delivery on the total volume represented by the CPW
Plan requirements, as may be modified by the parties, as of end of Supplier’s fiscal July 2005;
and (ii) by [**] Supplier has not (a) cured such deficiency by having established a minimum
of 90% delivery on the total volume represented by the CPW Plan requirements, as may be modified
by the parties, as of end of fiscal July 2005 and (b) achieved 90% delivery on the total volume
represented by the CPW Plan requirements, as may be modified by the parties, as of [**]

 

 

The Sixth Prepayment Event shall become exercisable in the event that: (i) by end of fiscal November 2005
Supplier has not achieved 75% delivery on the total volume represented by the CPW Plan
requirements, as may be modified by the parties, as of end of fiscal November 2005; and (ii) by [**]
Supplier has not (a) cured such deficiency by having established a minimum of 75% delivery on the
total volume represented by the CPW Plan requirements, as may be modified by the parties, as of end
of fiscal November and (b) achieved 75% delivery on the total volume represented by the CPW Plan
requirements, as may be modified by the parties, as of [**].

The Seventh Prepayment Event shall become exercisable in the event that, Nortel has exercised its
right under Section 2.1 of Exhibit D pursuant to an exercisable event and Supplier does not use
commercially reasonable efforts, at Nortel’s cost, to enable an Alternate Supplier, which has
reasonable skill in the industry, with the Critical Product IP, such that [**] under Section 2.1 of
Exhibit D,

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}]]