Document:

EXHIBIT 10.2

 EXHIBIT 10.2 
  
 NVR, INC. 
 2005 STOCK OPTION PLAN 
 NON-QUALIFIED STOCK OPTION AGREEMENT 
  
 THIS AGREEMENT is entered into as of
                    , between NVR, INC., a Virginia corporation (hereinafter “NVR”), and
                     an employee of NVR and/or of an NVR subsidiary (the “Optionee”). 
  
 Recitals: 
  
 WHEREAS, NVR has adopted the NVR, INC. 2005 Stock Option Plan (the “Plan”) providing for the grant under certain
circumstances of options (the “Options”) exercisable for the purchase of shares of NVR Common Stock (the “Shares”); 
  
 WHEREAS, NVR, under the terms and conditions set forth below, has offered and committed to grant an Option under the Plan to the Optionee in connection
with the employment of the Optionee in the capacity set forth below; and 
  
 WHEREAS, in consideration of the grant of the Option and other benefits, the Optionee is willing to accept the Option provided for in this Agreement and is willing to abide by the obligations imposed on him or her
under this Agreement and the other responsibilities of his or her position 
  
 Provisions: 
  
 NOW, THEREFORE,
in consideration of the mutual benefits hereinafter provided, and each intending to be legally bound, NVR and the Optionee hereby agree as follows: 
  
 1. Acknowledgments of Optionee. The Option granted under this Agreement is intended to provide to the Optionee an opportunity to purchase
Shares. The Optionee is employed by                      in the position of
            . The Optionee acknowledges that such position, the Option granted under this Agreement and the other benefits of his or her employment in that capacity are being
conferred upon the Optionee only because of and on the condition of the willingness of the Optionee to commit his or her best efforts and loyalty to NVR in the performance of the duties of that position. 
  
 2. Effect of the Plan. The Option to be granted under this
Agreement will be subject to all of the terms and conditions of the Plan, which are incorporated by reference and made part of this Agreement. The Optionee will abide by, and the Option granted to the Optionee will be subject to, all of the
provisions of the Plan and of this Agreement, together with all rules and determinations from time to time issued by the Committee established to administer the Plan and by the Board of Directors of NVR (hereinafter “Board”) pursuant to
the Plan. 

 STOCK OPTION AGREEMENT 
  PAGE
 2
 
  

 3. Grants. The Optionee is hereby granted an option to purchase
                     Shares, with an Option Price of
$                     per Share. 
  
 4. Exercise; Conditions to Exercise. 
  
 (a) Period of Exercise. Subject to Section 4(f) below, the Option may be exercised in whole or in part with respect to vested grants at any time
after vesting. No Option may be exercised after ten years from the date of grant. The Option may be exercised only with respect to whole Shares. 
  
 (b) Vesting of Option. If the EPS Target is met in accordance with Section 4(f)(i) below, then on each of December 31, 2010, December 31, 2011,
December 31, 2012 and December 31, 2013, twenty-five percent (25%) of the Options shall be exercisable in respect of the number of Shares initially subject to the Option. Subject to Section 4(f), the foregoing installments, to the extent not
exercised, shall accumulate and be exercisable, in whole or in part, at any time and from time to time, after becoming exercisable and prior to the termination of the Option. For the avoidance of doubt and by way of example, if additional vesting
occurs on December 31, 2010, the Options additionally vested on that date could not be exercised until the first business day of 2011, at which time the Optionee would not necessarily have to be an employee of NVR or an NVR subsidiary to exercise
the Options, subject to the earlier termination of the Option pursuant to Paragraphs 4(a) and 5 of this Agreement. In the event of a termination of the Optionee’s employment resulting from the Optionee’s involuntary termination without
“Cause” (as defined in Section 5), death, disability or retirement at normal retirement age (age 65) after the EPS Target is met, the Option shall become exercisable at the date of termination for a pro rata portion (based on the number of
full months of the current year that has expired prior to the termination, but no more than three months in the case of an involuntary termination without “Cause” or retirement at normal retirement age) of the previously nonexercisable
portion of the Option which would have been eligible to be exercised at the end of the year in which such termination occurs. 
  
 (c) Who May Exercise. During the Optionee’s lifetime, the Option rights may be exercised only by him or her. 
  
 (d) Manner of Exercise. Option rights may be exercised by the delivery
of written notice from the Optionee to the Committee or the Committee’s designee specifying the number of Shares then being exercised. 
  
 (e) Payment of Exercise Price. To exercise the Option, the Optionee must make full payment of the Option Price to NVR in any one or more of the
following ways: 
  
 (i) in immediately available funds;

  

 STOCK OPTION AGREEMENT 
  PAGE
 3
 
  

 (ii) by the assignment and delivery to NVR of Shares owned by the Optionee (or his estate) provided
however, that such Shares have not been acquired pursuant to the exercise of an option within the last six months (unless the options were exercised following the death of the Optionee), are free and clear of all liens and encumbrances and have a
fair market value (as determined by the closing price on the national securities exchange on which the Shares are listed on the day preceding the day of exercise or by any other method acceptable to the Committee in its absolute discretion) equal to
the applicable Option Price less than any portion thereof paid in cash; or 
  
 (iii) by delivery (on a form prescribed by NVR) of an irrevocable direction to a licensed securities broker acceptable to NVR to sell Shares and to deliver all or part of the sale proceeds to NVR in payment of the
aggregate Option Price (but only if the Optionee is not a member of Senior Management). 
  
 The Optionee also must reimburse NVR for the amount of all applicable withholding taxes at the rate required to be paid by NVR in immediately available funds at the time of exercise. 
  
 (f) Restrictions on Exercise. 
  
 (i) Performance Goal. Except as provided in Section 7 below, the
Option shall not become exercisable unless NVR meets the EPS Target. NVR will be deemed to have met the EPS Target if NVR’s cumulative earnings per share is at least $339.00 per share (as adjusted by the Board in its reasonable discretion for
reorganizations, recapitalizations, splits, reverse splits, combinations of shares, mergers, consolidations, sales of assets or other similar events occurring after May 4, 2005) for the years 2005, 2006, 2007 and 2008. For the avoidance of doubt,
cumulative earnings per share means the sum of the earnings per share for each year (determined in accordance with the generally accepted accounting principles for U.S. companies as then in effect for each such year, with no retroactive adjustments
for rules becoming effective in future years), and shall be determined as of December 31, 2008. 
  
 (ii) Regulatory Matters. The Option may not be exercised if such exercise would constitute a violation of any applicable Federal or state statute
or regulation or if any required approval of a governmental authority having jurisdiction shall not have been secured. NVR agrees to use reasonable diligence to obtain all such requisite approvals or consents. 
  
 5. Termination of Option. 
  
 (a) If the EPS Target has not been met as of December 31, 2008, the Option
shall immediately terminate. 
  

 STOCK OPTION AGREEMENT 
  PAGE
 4
 
  

 (b) If the Optionee ceases to be an employee of NVR and its affiliates, other than as a result of a
termination for “Cause” (as defined in the following paragraph), the unexercised Option shall terminate, except that within three (3) months after termination of employment (one year in the case of termination due to death or disability)
the Optionee or his personal representative and/or the person or persons to whom the Optionee’s Option rights may pass by will or by the applicable laws of descent and distribution, as the case may be, may exercise the Option to the extent to
which he or she was entitled to exercise the Option on the date of termination of employment. 
  
 (c) A termination shall be for “Cause” in the event the Optionee ceases to be an employee of NVR and its affiliates attributable to a termination of employment as a result of (i) conviction of a felony, or
other crime involving moral turpitude; (ii) gross misconduct in connection with the performance of such Optionee’s duties (which shall include a breach of such Optionee’s fiduciary duty of loyalty); (iii) a willful violation of any
criminal law involving a felony, including federal or state securities laws; or (iv) material breaches (following notice and an opportunity to cure) of any covenants by the Optionee contained in any agreement between Optionee and NVR or its
affiliates. In the event of a for “Cause” termination of employment, the unexercised Option shall terminate immediately. 
  
 (d) In no event may the Option be exercised by the Optionee if he or she has violated any provision of this Agreement. 
  
 6. Adjustment Upon Changes in Shares. In the event of a change in
NVR’s capital structure, the adjustments provided for in Paragraph 12 of the Plan shall be made to the Option Price and the number of Shares subject to the Option hereunder. 
  
 7. Change of Control; Sale of Assets/Stock. Upon the dissolution or liquidation of NVR or upon a Change of Control,
the Option shall be fully vested and be exercisable without regard to whether or not the EPS Target has been met. In the event of any such Change of Control or dissolution or liquidation (a “Transaction”), the Optionee shall have the
right, (i) immediately prior to the occurrence of such Transaction and (ii) during such period occurring prior to such Transaction as the Committee in its sole discretion shall designate, to exercise the Option in whole or in part, whether or not
such Option was otherwise exercisable at the time such Transaction occurs and without regard to any installment limitation on exercise imposed pursuant to Section 4 above, but subject to Section 4(f)(ii). 
  
 For purposes of the Plan, “Change of Control” means: 
  
 (i) a merger, consolidation, reorganization or other business combination of
NVR with one or more other entities in which NVR is not the surviving entity; 
  
 (ii) a sale of substantially all of the assets of NVR to another entity; or 
  

 STOCK OPTION AGREEMENT 
  PAGE
 5
 
  

 (iii) any transaction (including, without limitation, a merger or reorganization in which NVR is the
surviving entity) which results in any person or entity (or persons or entities acting as a group or otherwise in concert) owning twenty percent or more of the common stock of NVR. 
  
 Notwithstanding (iii) above, a Change of Control shall not occur if any director, officer or employee owns 20 percent or
more of the Shares, or acquires the right to purchase Shares which if such right were exercised would result in the ownership of 20 percent or more of the Shares, as a result of: 
  
 (a) the exercise of options or the grant or vesting of equity-based awards under any incentive plan of NVR; 
  
 (b) the purchase of Shares directly by the director, officer or employee of
NVR; or 
  
 (c) the implementation of a Share repurchase program
by NVR. 
  
 8. Noncompetition, Non-Solicitation and
Confidentiality. (a) In consideration of the promises set forth in this Agreement, the Optionee agrees: 
  
 (i) to maintain the confidentiality of any and all information concerning NVR and its affiliates, whether with respect to its business, operations,
finances, employees or otherwise during the period of his or her employment and for three (3) years after the termination of such employment; 
  
 (ii) that, during employment, he or she will not compete with NVR or with any of its affiliates, directly or indirectly in any phase of the residential
homebuilding business or mortgage financing business or settlement services business at any location and during the twenty-four (24) month period following termination, he or she will not compete with NVR or with any of its affiliates, directly or
indirectly in any phase of the residential homebuilding business or mortgage financing business or settlement services business at any location within any Standard Metropolitan Statistical Area (as determined by the Census Bureau, Department of
Commerce, United States Government) in which Optionee has had managerial responsibility for any office or affiliate of NVR at any time within the two-year period prior to the Optionee’s termination of employment; 
  
 (iii) that he or she will not hire or solicit for hiring, directly or
indirectly, any person now or hereafter employed by, or providing services as a subcontractor to, NVR or any affiliate of NVR for twenty-four (24) months after termination of the Optionee’s employment; 
  
 (iv) that he or she will not utilize the services of or attempt to acquire
real property, goods or services from any developer or subcontractor now or hereafter utilized by NVR or any affiliate of NVR for twenty-four (24) months after termination of employment; and 
  

 STOCK OPTION AGREEMENT 
  PAGE
 6
 
  

 (v) not to make or retain copies of any documents, forms, blueprints, designs, policies, memoranda
or other written information developed by NVR or any affiliate of NVR now or hereafter produced and/or circulated by NVR and further agrees not to copy, transfer or otherwise retain any electronic data (including information stored on a hard drive
or disk), software (including proprietary software), computer data bases or other non-print information produced, designed, owned, copyrighted or utilized by NVR. 
  
 (b) The Optionee acknowledges that the restrictions set forth in this Section 8 and elsewhere in this Agreement are
reasonable and necessary to protect the business and interests of NVR and its affiliates and that it would be impossible to measure in money the damages that could or would accrue to NVR and its affiliates in the event that the Optionee fails to
honor his or her obligations under this Section 8. Therefore, in addition to any other remedies NVR or its affiliates may have, it shall have the right to have the Optionee’s obligations hereunder specifically performed by order of any court
having jurisdiction, without the necessity of proving actual damage. 
  
 (c) If the Optionee violates the restrictions set forth in this Section 8, the Optionee shall forfeit the Options granted pursuant to this Agreement, and shall also repay to NVR the gain (i.e., the difference at exercise between the
aggregate fair market value of the purchased shares and the aggregate Option Price) recognized by the Optionee pursuant to the Options during the period beginning eighteen (18) months prior to the first violation by the Optionee of this Section 8
and ending on the date that the Company notifies the Optionee that the Optionee has forfeited the Options pursuant to this Section 8. 
  
 (d) In the event that there is a Change of Control, as defined in Section 7 of the Agreement, and the Participant is terminated without Cause, or the
Participant voluntarily terminates with Good Reason, with Good Reason defined as (i) the Participant’s management responsibilities are diminished, or (ii) the Participant was an Executive Officer of NVR as defined by the Securities Exchange Act
of 1933 and is not an Executive Officer of the surviving corporation or (iii) the Participant suffers any reduction of base compensation or any reduction in incentive opportunities, the non-competition provisions of Paragraph 8 become void. The
confidentiality provisions remain in full force and effect. 
  
 9. Nonassignability. The options may not be transferred in any manner otherwise than by will or the laws of descent and distribution. 
  
 10. Rights as a Holder of Shares. An Optionee or a transferee of an Option shall have no rights as a Shareholder with respect to any Shares
covered by his or her Option until the date on which payment is made by him or her, and accepted by the Company, for such Shares. No adjustment shall be made for distributions for which the record date is prior to the date such payment is made and
accepted. 
  

 STOCK OPTION AGREEMENT 
  PAGE
 7
 
  

 11. Employment. Nothing herein contained shall be construed to entitle the Optionee to
continued employment with NVR and its affiliates. 
  
 12.
Notices. All notices to NVR must be in writing, addressed and delivered or mailed to: NVR, Inc., Plaza America Tower I, 11700 Plaza America Drive, Suite 500, Reston, VA 20190, Attn: Assistant Treasurer and all notices to the Optionee must be
in writing addressed and delivered or mailed to him or her at the address shown on the records of NVR. 
  
 13. Governing Law. This Agreement and all determinations made and actions taken pursuant thereto, shall be governed under the laws of the
Commonwealth of Virginia, other than with regard to the choice of law provisions thereof. 
  
 14. Severability. If any part of this Agreement shall be determined to be invalid or unenforceable, such part shall be ineffective only to the extent of such invalidity or unenforceability, without affecting
the remaining portions hereof. 
  
 15. Amendment,
Suspension or Termination of Plan. The Company may from time to time amend, suspend or, at any time, terminate the Plan or modify this option agreement. An amendment, suspension or termination of the Plan shall not without the consent of the
Optionee, reduce or impair any rights or obligations under this Agreement. 
  
 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first above written. 
  

					
	 	 	NVR, INC.
			
	 	 	By:	 	  

	 	 	Its:	 	  

		
	
	 	

	 WITNESS (as to Optionee)
	 	OPTIONEESeventh Amendment to Amended and Restated Revolving Credit and Security Agrmt.

  
 Exhibit 10.1

  
 SEVENTH AMENDMENT 
 TO 
 AMENDED AND RESTATED 
 REVOLVING CREDIT AND SECURITY AGREEMENT 
  
 This Seventh Amendment to Amended and Restated Revolving Credit and Security Agreement (the “Amendment”) is entered into as of February 28, 2005, by and between
COMERICA BANK (“Bank”) and AVANEX CORPORATION (“Borrower”). 
  
 RECITALS 
  
 Borrower and
Bank are parties to that certain Amended and Restated Revolving Credit and Security Agreement dated as of July 10, 2000 (as amended from time to time, including without limitation that certain First Amendment to Amended and Restated Revolving Credit
and Security Agreement dated as of August 24, 2000, that certain Second Amendment to Amended and Restated Revolving Credit and Security Agreement dated as of January 2, 2001, that certain Third Amendment to Amended and Restated Revolving Credit and
Security Agreement dated as of July 19, 2001, that certain Fourth Amendment to Amended and Restated Revolving Credit and Security Agreement dated as of September 26, 2002, that certain Fifth Amendment to Amended and Restated Revolving Credit and
Security Agreement dated as of June 18, 2003, and that certain Sixth Amendment to Amended and Restated Revolving Credit and Security Agreement dated as of December 31, 2003, together with any related agreements, the “Agreement”).
Hereinafter, all indebtedness owing by Borrower to Bank shall be referred to as the “Indebtedness.” The parties desire to amend the Agreement in accordance with the terms of this Amendment. 
  
 NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows: 
  
 AGREEMENT 
  

	I.	Incorporation by Reference. The Recitals and the documents referred to therein are incorporated herein by this reference. Except as otherwise noted, the terms not
defined herein shall have the meaning set forth in the Agreement. 

  

	II.	Amendment to the Agreement. Subject to the satisfaction of the conditions precedent as set forth in Article IV hereof, the Agreement is hereby amended as set forth
below. 

  

	 	A.	The following definitions in Section 1.1 of the Agreement are hereby alphabetically added or amended and restated in their entirety to read as follows: 

  
 “Committed Line” means Ten Million Dollars ($10,000,000).

  
 “Foreign Exchange Sublimit” means a sublimit for
foreign exchange contracts under the Committed Line not to exceed $2,500,000. 
  
 “Termination Date” means January 1, 2006. 
  

	 	B.	Section 2.1 of the Agreement is hereby amended and restated in its entirety to read as follows: 

  
 “2.1 Revolving Credit. Subject to and upon the terms and conditions of this Agreement, Borrower may request
Advances (pursuant to Section 2.1 hereof) under a revolving line of credit (the “Revolving Line”) from time to time in an aggregate outstanding amount not to exceed the Committed Line minus (i) the aggregate face amount of all
outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit) and (ii) the Foreign Exchange Sublimit. Subject to the terms and conditions of this Agreement, amounts borrowed pursuant to this Section 

 
2.1 may be repaid and reborrowed at any time prior to the Termination Date, at which time all Advances under this Agreement shall be immediately due and
payable.” 
  

	 	C.	The last sentence of Section 2.2.2 of the Agreement is hereby amended and restated to read as follows: 

  
 “Except in Bank’s discretion, the amount of all Letter of Credit Obligations shall not at any time exceed Three
Million Dollars ($3,000,000).” 
  

	 	D.	The term loan facility previously set forth in Sections 2.11 through 2.17 of the Agreement are hereby re-numbered to be Sections 2.12 through 2.18 of the Agreement.

  

	 	E.	Section 2.11 of the Agreement is hereby deleted in its entirety and replaced as follows: 

  
 “2.11 Foreign Exchange Sublimit. Subject to and upon the terms and conditions of this Agreement and any other
agreement that Borrower may enter into with the Bank in connection with foreign exchange transactions (“FX Contracts”), Borrower may request Bank to enter into FX Contracts with Borrower due not later than the Termination Date. Borrower
shall pay any standard issuance and other fees that Bank notifies Borrower will be charged for issuing and processing FX Contracts for Borrower. The FX Amount shall at all times be equal to or less than Two Million Five Hundred Thousand Dollars
($2,500,000). The “FX Amount” shall equal the amount determined by multiplying (i) the aggregate amount, in United States Dollars, of FX Contracts between Borrower and Bank remaining outstanding as of any date of determination by (ii) the
applicable Foreign Exchange Reserve Percentage as of such date. The “Foreign Exchange Reserve Percentage” shall be a percentage as determined by Bank, in its sole discretion from time to time. The initial Foreign Exchange Reserve
Percentage shall be ten percent (10%).” 
  

	 	F.	Section 8.5 of the Agreement is hereby amended and restated in its entirety to read as follows: 

  
 “8.5 Minimum Cash Balance. Borrower shall maintain a minimum balance of Unrestricted Cash (as defined herein) of
Fifty Million Dollars ($50,000,000) at all times (the “Minimum Cash Balance”), and Twelve Million Dollars ($12,000,000) (the “Restricted Amount”) of the Minimum Cash Balance shall be maintained in Borrower’s account
#48-01-100-0810172 with Munder Capital, also known as the Comerica Bank (Institutional Trust Department) (the “Restricted Account”), which Restricted Account is subject to a Securities Account Control Agreement dated June 18, 2003 (as
amended from time to time, the “Control Agreement”). Amounts maintained by the Borrower in its account #48-01-100-0660490 with Munder Capital shall not be subject to the Control Agreement Bank shall promptly provide Borrower with a copy of
all notices delivered by Bank to Munder Capital with respect to the Control Agreement provided that any failure to provide such notice shall not constitute a failure by Bank to comply with the terms of this Agreement or the Loan Documents. In the
event that the Revolving Credit terminates pursuant to Section 2.8 of the Agreement and Borrower has paid all principal, all accrued interest, all Bank Expenses and all Obligations owing by Borrower to Bank under the Loan Documents (except for
Letter of Credit Obligations of Borrower to Bank with respect to Letters of Credit for which Borrower has provided cash security to Bank in an amount equal to any undrawn amounts under such issued and outstanding Letters of Credit including
applicable fees and costs), and Bank has no further obligation to make any credit extensions to Borrower (except pursuant to issued and outstanding Letters of Credit), and Borrower provides Bank with cash security maintained with Bank to secure all
obligations under any issued and outstanding Letters of Credit (as required pursuant to Section 2.2.5 of the Agreement) issued under the Agreement or the Loan Documents in an amount equal to any undrawn amounts under such issued and outstanding
Letters of Credit including applicable fees and costs, then the Restricted Amount shall no longer be subject to the Control Agreement and Bank and Bank’s Affiliates shall no longer have a security interest in the Restricted Account
“Unrestricted Cash” as used herein means domestic cash and cash 

 
equivalents, plus domestic short-term investments, plus domestic long-term investments (including long-term investments at Munder Capital),
minus trade accounts payable, and minus the current portion of restructuring charges.” 
  

	 	E.	Bank’s addresses for notices set forth in Article XII of the Agreement are hereby amended in their entirety to read as follows: 

  

			
	 “If to Bank:
	  	Comerica Bank
	 	  	 2321 Rosecrans Ave., Suite 5000
 El Segundo, CA
90245
 Attn: Manager
 FAX: (310) 297-2290

		
	 With a copy to:
	  	Comerica Bank
	 	  	 Technology and Life Sciences Division
 226 Airport
Parkway, 1st Floor
 San
Jose, CA 95110
 Attn: Arne Olson
 FAX: (408)
451-8568”

  

	 	F.	The following paragraphs are hereby added to the end of Article XIII of the Agreement to read as follows: 

  
 “The parties prefer that any dispute between them be
resolved in litigation subject to a Jury Trial Waiver as set forth in the Loan Documents (defined below), but the availability of that process is in doubt because of the opinion of the California Court of Appeal in Grafton Partners LP v. Superior
Court, 9 Cal.Rptr.3d. 511. This Reference Provision will be applicable until the California Supreme Court completes its review of that case, and will continue to be applicable if either that court or a California Court of Appeal publishes a decision
holding that a pre-dispute Jury Trial Waiver provision similar to that contained in the Loan Documents is invalid or unenforceable. Delay in requesting appointment of a referee pending review of any such decision, or participation in litigation
pending review, will not be deemed a waiver of this Reference Provision. 
  
 Other than (i) nonjudicial foreclosure of security interests in real or personal property, (ii) the appointment of a receiver or (iii) the exercise of other provisional remedies (any of which may be initiated pursuant
to applicable law), any controversy, dispute or claim (each, a “Claim”) between the parties arising out of or relating to this Agreement or any other document, instrument or agreement between the Bank and the undersigned (collectively in
this Section, the “Loan Documents”), will be resolved by a reference proceeding in California in accordance with the provisions of Section 638 et seq. of the California Code of Civil Procedure (“CCP”), or their successor
sections, which shall constitute the exclusive remedy for the resolution of any Claim, including whether the Claim is subject to the reference proceeding. Except as otherwise provided in the Loan Documents, venue for the reference proceeding will be
in the Superior Court or Federal District Court in the County or District where venue is otherwise appropriate under applicable law (the “Court”). 
  
 The referee shall be a retired Judge or Justice selected by mutual written agreement of the parties. If the parties do not agree, the
referee shall be selected by the Presiding Judge of the Court (or his or her representative). A request for appointment of a referee may be heard on an ex parte or expedited basis, and the parties agree that irreparable harm would result if
ex parte relief is not granted. The referee shall be appointed to sit with all the powers provided by law. Each 

 
party shall have one peremptory challenge pursuant to CCP §170.6. Pending appointment of the referee, the Court has power to issue temporary or
provisional remedies. 
  
 The parties agree that
time is of the essence in conducting the reference proceedings. Accordingly, the referee shall be requested to (a) set the matter for a status and trial-setting conference within fifteen (15) days after the date of selection of the referee, (b) if
practicable, try all issues of law or fact within ninety (90) days after the date of the conference and (c) report a statement of decision within twenty (20) days after the matter has been submitted for decision. Any decision rendered by the referee
will be final, binding and conclusive, and judgment shall be entered pursuant to CCP §644. 
  
 The referee will have power to expand or limit the amount and duration of discovery. The referee may set or extend discovery deadlines or
cutoffs for good cause, including a party’s failure to provide requested discovery for any reason whatsoever. Unless otherwise ordered, no party shall be entitled to “priority” in conducting discovery, depositions may be taken by
either party upon seven (7) days written notice, and all other discovery shall be responded to within fifteen (15) days after service. All disputes relating to discovery which cannot be resolved by the parties shall be submitted to the referee whose
decision shall be final and binding. 
  
 Except
as expressly set forth in this Agreement, the referee shall determine the manner in which the reference proceeding is conducted including the time and place of hearings, the order of presentation of evidence, and all other questions that arise with
respect to the course of the reference proceeding. All proceedings and hearings conducted before the referee, except for trial, shall be conducted without a court reporter, except that when any party so requests, a court reporter will be used at any
hearing conducted before the referee, and the referee will be provided a courtesy copy of the transcript. The party making such a request shall have the obligation to arrange for and pay the court reporter. Subject to the referee’s power to
award costs to the prevailing party, the parties will equally share the cost of the referee and the court reporter at trial. 
  
 The referee shall be required to determine all issues in accordance with existing case law and the statutory laws of the State of
California. The rules of evidence applicable to proceedings at law in the State of California will be applicable to the reference proceeding. The referee shall be empowered to enter equitable as well as legal relief, provide all temporary or
provisional remedies, enter equitable orders that will be binding on the parties and rule on any motion which would be authorized in a trial, including without limitation motions for summary judgment or summary adjudication . The referee shall issue
a decision at the close of the reference proceeding which disposes of all claims of the parties that are the subject of the reference. The referee’s decision shall be entered by the Court as a judgment or an order in the same manner as if the
action had been tried by the Court. The parties reserve the right to appeal from the final judgment or order or from any appealable decision or order entered by the referee. The parties reserve the right to findings of fact, conclusions of laws, a
written statement of decision, and the right to move for a new trial or a different judgment, which new trial, if granted, is also to be a reference proceeding under this provision. 
  
 If the enabling legislation which provides for appointment of a referee is repealed (and no successor
statute is enacted), any dispute between the parties that would otherwise be determined by reference procedure will be resolved and determined by arbitration. The arbitration will be conducted by a retired judge or Justice, in accordance with the
California Arbitration Act §1280 through §1294.2 of the CCP as amended from time to time. The limitations with respect to discovery set forth above shall apply to any such arbitration proceeding. 
  
 THE PARTIES RECOGNIZE AND AGREE THAT ALL DISPUTES RESOLVED UNDER THIS
REFERENCE PROVISION WILL BE DECIDED BY A REFEREE AND NOT BY A JURY, AND THAT THEY ARE IN EFFECT WAIVING THEIR RIGHT TO TRIAL BY JURY 

 
IN AGREEING TO THIS REFERENCE PROVISION. AFTER CONSULTING (OR HAVING HAD THE OPPORTUNITY TO CONSULT) WITH COUNSEL OF THEIR OWN CHOICE, EACH PARTY KNOWINGLY
AND VOLUNTARILY AND FOR THEIR MUTUAL BENEFIT AGREES THAT THIS REFERENCE PROVISION WILL APPLY TO ANY DISPUTE BETWEEN THEM WHICH ARISES OUT OF OR IS RELATED TO THIS AGREEMENT OR THE LOAN DOCUMENTS.” 
  

	 	G.	Exhibit C to the Agreement is hereby deleted and replaced with the attached Exhibit C. 

  

	III.	Legal Effect. 

  

	 	A.	The Agreement is hereby amended wherever necessary to reflect the changes described above. Borrower agrees that it has no defenses against the obligations to pay any amounts under
the Indebtedness. 

  

	 	B.	Borrower is in violation of Section 7.4 of the Agreement, which requires Borrower to deliver a Compliance Certificate for the quarters ending June 30, 2004 and September 30, 2004.
Bank hereby waives receipt of the Compliance Certificates for the quarters ending June 30, 2004 and September 30, 2004. This waiver is specific as to content and time and shall not constitute a waiver of any other current or future default or breach
of any covenants contained in the Agreement or the terms and conditions of any other documents signed by Borrower in favor of Bank. The Bank may still exercise its rights or any other or further rights against Borrower because of any other breach
not waived above. 

  

	 	C.	Borrower understands and agrees that in modifying the existing Indebtedness, Bank is relying upon Borrower’s representations, warranties, and agreements, as set forth in the
Agreement. Except as expressly modified pursuant to this Amendment, the terms of the Agreement remain unchanged, and in full force and effect. Bank’s agreement to modifications to the existing Indebtedness pursuant to this Amendment in no way
shall obligate Bank to make any future modifications to the Indebtedness. Nothing in this Amendment shall constitute a satisfaction of the Indebtedness. It is the intention of Bank and Borrower to retain as liable parties, all makers and endorsers
of Agreement, unless the party is expressly released by Bank in writing. No maker, endorser, or guarantor will be released by virtue of this Amendment. The terms of this paragraph apply not only to this Amendment, but also to all subsequent loan
modification requests. 

  

	 	D.	This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one instrument. This is an
integrated Amendment and supersedes all prior negotiations and agreements regarding the subject matter hereof. All modifications hereto must be in writing and signed by the parties. 

  

	IV.	Conditions Precedent. Except as specifically set forth in this Amendment, all of the terms and conditions of the Agreement remain in full force and effect. The
effectiveness of this Agreement is conditioned upon receipt by Bank of this Amendment, and any other documents which Bank may require to carry out the terms hereof, including but not limited to the following: 

  

	 	A.	This Amendment, duly executed by Borrower; 

  

	 	B.	Corporation Resolutions and Incumbency Certification, duly executed by Borrower; 

  

	 	C.	An Amendment fee from the Borrower in the amount of $ 19,000; and 

  

	 	D.	Such other documents, and completion of such other matters, as Bank may reasonably deem necessary or appropriate. 

 IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the first date above written. 
  

			
	COMPANY
	
	 AVANEX CORPORATION

		
	By:	 	 /s/ L. Reddick

	 Title:
	 	 CFO

	
	 COMERICA BANK

		
	By:	 	 /s/ Arne Olson

	 Title:
	 	 First Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00084-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00084-of-00352.parquet"}]]