Document:

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                                                                   EXHIBIT 10.20

                                  BOOKHAM, INC.

                ------------------------------------------------

                                      RULES
                                     OF THE
                               BOOKHAM, INC. 2004
                                SHARESAVE SCHEME
                (ADOPTED BY RESOLUTION OF THE BOARD OF DIRECTORS
        ON SEPTEMBER 9, 2004 APPROVED BY SHAREHOLDERS ON SEPTEMBER 9, 2004 AND
                         APPROVED BY THE INLAND REVENUE
                             UNDER REFERENCE SRS/-)

                ------------------------------------------------

                [WILMER CUTLER PICKERING HALE AND DORR LLP LOGO]

                                  Alder Castle
                                 10 Noble Street
                                 London EC2V 7QJ
                            Tel: +44 (0)20 7645 2400
                            Fax: +44 (0)20 7645 2424

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                                    CONTENTS

<Table>
<S>                                                                           <C>
1.     DEFINITIONS.............................................................1

2.     APPLICATION FOR OPTIONS.................................................5

3.     SCALING DOWN............................................................6

4.     GRANT OF OPTIONS........................................................7

5.     NUMBER OF NEW SHARES IN RESPECT OF WHICH OPTIONS MAY BE GRANTED.........7

6.     RIGHTS OF EXERCISE AND LAPSE OF OPTIONS.................................7

7.     TAKEOVER, RECONSTRUCTION AND AMALGAMATION, AND LIQUIDATION..............9

8.     MANNER OF EXERCISE.....................................................11

9.     ISSUE OR TRANSFER OF SHARES............................................12

10.    ADJUSTMENTS............................................................12

11.    ADMINISTRATION.........................................................12

12.    ALTERATIONS............................................................13

13.    GENERAL................................................................13
</Table>

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                RULES OF THE BOOKHAM, INC. 2004 SHARESAVE SCHEME

1.       DEFINITIONS

1.1      In this Scheme, the following words and expressions shall have, unless
         the context otherwise requires, the following meanings:

"ACT"                           the Income Tax (Earnings and Pensions) Act 2003;

"APPROPRIATE PERIOD"            means:

                                (a)   where control of the Company is obtained
                                      in the way set out in Rule 7.6(a), the
                                      period of six months beginning with the
                                      time when the Acquiring Company obtains
                                      control and any condition subject to which
                                      the offer is made is met;

                                (b)   where control of the Company is obtained
                                      in the way set out in Rule 7.6(b), the
                                      period of six months beginning with the
                                      time when the court sanctions the
                                      compromise or arrangement;

                                (c)   where Rule 7.6(c) applies, the period
                                      during which the Acquiring Company remains
                                      bound or entitled as mentioned in that
                                      Rule;

"ASSOCIATED COMPANY"            an associated company of the Company within the
                                meaning that expression bears in paragraph 47 of
                                Schedule 3 to the Act;

"BOARD"                         the board of directors of the Company or a duly
                                authorised committee thereof;

"BONUS DATE"                    where the Participant may elect under the
                                Savings Contract for a repayment of that
                                contract to be taken as including either a 5 or
                                7 year bonus, whichever bonus date he may
                                choose, and, in any other case, the earliest
                                date on which a bonus is payable under such
                                Savings Contract;

"CLOSE COMPANY"                 a close company as defined in section 414(1)
                                Taxes Act as varied by paragraph 11 of Schedule
                                3 to the Act;

"COMPANY"                       Bookham, Inc. a Delaware corporation;

"CONTROL"                       the meaning given by section 840 Taxes Act;

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"DATE OF GRANT"                 the date on which the Board accepts a duly
                                completed form of application;

"DATE OF INVITATION"            the date on which the Board invites applications
                                for Options;

"ELIGIBLE EMPLOYEE"             any individual (other than a person precluded
                                from participating in the Scheme by virtue of
                                paragraph 11 of Schedule 3 (no material interest
                                requirement)) who:

                                (a)   (i)    is a full-time director or full or
                                             part-time employee of a
                                             Participating Company; and

                                      (ii)   whose earnings from the office or
                                             employment within paragraph (a)(i)
                                             above are (or would be if there
                                             were any) general earnings to which
                                             section 15 or 21 of the Act applies
                                             (earnings for year when employee
                                             resident or ordinarily resident in
                                             the UK); and

                                      (iii)  has been an employee or director at
                                             all times during such qualifying
                                             period (if any) determined by the
                                             Board of not more than five years;
                                             or

                                (b)   is nominated by the Board as an Eligible
                                      Employee for the purposes of the Scheme;

"EXERCISE PRICE"                the amount payable on the exercise of an Option,
                                whether in whole or in part, being an amount
                                equal to the relevant Option Price multiplied by
                                the number of Shares in respect of which the
                                Option is exercised;

"JOINTLY OWNED COMPANY"         any company owned by the Company or any
                                Subsidiary of the Company with another person
                                and any company controlled by such jointly owned
                                company to which, in each case, the Inland
                                Revenue has confirmed the Scheme may extend;

"KEY FEATURE"                   in relation to the Scheme, a provision which is
                                necessary in order to meet the requirements of
                                Schedule 3 to the Act;

"MARKET VALUE"                  in relation to a Share on any day its market
                                value determined in accordance with Part 8 of
                                the Taxation of Chargeable Gains Act 1992 and
                                agreed in advance with the Shares Valuation of
                                the Inland Revenue;

"MAXIMUM CONTRIBUTION"          the lesser of:

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                                (a)   L 250 per month or such other maximum
                                      monthly contribution as may be permitted
                                      pursuant to paragraph 25 of Schedule 3 of
                                      the Act; or

                                (b)   such maximum monthly contribution as may
                                      be determined from time to time by the
                                      Board;

"MONTHLY CONTRIBUTIONS"         monthly contributions agreed to be paid by a
                                Participant under the Savings Contract made in
                                connection with his Option;

"OPTION"                        a right to acquire (by way of subscription or
                                otherwise) Shares under the Scheme which is
                                either subsisting or (where the context so
                                admits or requires) is proposed to be granted;

"OPTION PRICE"                  the price per Share, as determined by the Board,
                                at which an Eligible Employee may acquire Shares
                                upon the exercise of an Option not being
                                manifestly less than:

                                (a)   80 per cent of the Market Value on the
                                      date immediately preceding the Date of
                                      Invitation or at such other time or times
                                      as may be agreed in advance in writing
                                      with the Inland Revenue; and

                                (b)   if the Shares are to be subscribed, their
                                      nominal value,

                                but subject to any adjustment pursuant to
                                Rule 10;

"PARTICIPANT"                   a director or employee, or former director or
                                employee, to whom an Option has been granted, or
                                (where the context so admits or requires) the
                                personal representatives of any such person;

"PARTICIPATING COMPANY"         (a)   the Company;

                                (b)   any other company which is under the
                                      Control of the Company or is a Subsidiary
                                      of the Company; and

                                (c)   any other company which is a Jointly Owned
                                      Company

                                and, in the case of a company within (b) and/or
                                (c), is for the time being designated by the
                                Board as a Participating Company;

"REORGANIZATION EVENT"          (a)   any merger or consolidation of the Company

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                                      with or into another entity as a result of
                                      which all of the common stock of the
                                      Company is converted into or exchanged for
                                      the right to receive cash, securities or
                                      other property;

                                (b)   any exchange of all of the common stock of
                                      the Company for cash, securities or other
                                      property pursuant to a share exchange
                                      transaction; or

                                (c)   any liquidation or dissolution of the
                                      Company;

"SAVINGS CONTRACT"              a contract under a certified contractual savings
                                scheme (within the meaning of section 326 of the
                                Taxes Act) which has been approved by the Inland
                                Revenue for the purpose of Schedule 3 to the
                                Act;

"SCHEME"                        the Bookham, Inc. 2004 Sharesave Scheme in its
                                present form or as from time to time amended in
                                accordance with the provisions hereof;

"SHARE"                         a share in the common stock of the Company which
                                satisfies the conditions specified in paragraphs
                                17-22 (inclusive) of Schedule 3 to the Act;

"SPECIFIED AGE"                 60 years of age;

"SUBSIDIARY"                    the meaning given by section 736 of the
                                Companies Act 1985;

"TAXES ACT"                     the Income and Corporation Taxes Act 1988.

1.2      In this Scheme, unless the context requires otherwise:

         (a)    the headings are inserted for convenience only and do not affect
                the interpretation of any Rule;

         (b)    a reference to a Rule is a reference to a Rule of this Scheme;

         (c)    a reference to a statute or statutory provision includes a
                reference:

                (i)     to that statute or provision as from time to time
                        consolidated, modified, re-enacted or replaced by any
                        statute or statutory provision;

                (ii)    to any repealed statute or statutory provision which it
                        re-enacts (with or without modification); and

                (iii)   to any subordinate legislation made under it;

         (d)    words in the singular include the plural, and vice versa;

         (e)    a reference to the masculine shall be treated as a reference to
                the feminine, and vice versa;

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         (f)    a reference to "a year" shall be a period calculated by
                reference to a previous or subsequent anniversary of a
                particular date.

2.       APPLICATION FOR OPTIONS

2.1      The Board may at its discretion and at any time invite (by any method
         the Board considers appropriate) applications for Options from Eligible
         Employees, and any such invitation shall include details of:

         (a)    eligibility;

         (b)    the Option Price;

         (c)    the Maximum Contribution payable;

         (d)    whether, for the purpose of determining the number of Shares
                over which an Option is to be granted, the repayment under the
                Savings Contract is to be taken:

                (i)     as including a seven year or five year bonus;

                (ii)    as including a five year bonus;

                (iii)   as including a three year bonus; or

                (iv)    as not including a bonus;

         (e)    the date by which applications made pursuant to Rule 2.3 must be
                received (being neither earlier than 14 days nor later than 25
                days after the Date of Invitation),

         and the Board may determine and include in the invitation details of
         the maximum number of Shares over which applications for Options are to
         be invited in that Invitation Period.

2.2      An application for an Option must incorporate or be accompanied by a
         proposal for a Savings Contract.

2.3      An application for an Option shall be in such form as the Board may
         from time to time prescribe save that it shall provide for the
         applicant to state:

         (a)    the Monthly Contributions (being a multiple of L 1 and not less
                than such minimum specified by the Board (such minimum not to be
                greater than L 10 (or such other figure specified in paragraph
                25(3)(b) of Schedule 3 to the Act);

         (b)    that his proposed Monthly Contributions (when taken together
                with any Monthly Contributions he makes under any other Savings
                Contract) will not exceed the Maximum Contribution;

         (c)    if Eligible Employees may elect for the repayment under the
                Savings Contract to be taken as including the seven-year bonus,
                a three or five year bonus, or as not including a bonus, his
                election in that respect.

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2.4      Each application for an Option shall provide that, in the event of
         excess applications, each application shall be deemed to have been
         modified or withdrawn in accordance with the steps taken by the Board
         to scale down applications pursuant to Rule 3.

2.5      Proposals for a Savings Contract shall be limited to such building
         society, bank or European financial institution as the Board may
         designate.

2.6      Each application shall be deemed to be for an Option over the largest
         whole number of Shares which can be acquired at the Option Price with
         the relevant repayment under the Savings Contract entered into in
         connection with the Option.

3.       SCALING DOWN

3.1      If valid applications are received for a total number of Shares in
         excess of any maximum number of Shares determined by the Board pursuant
         to Rule 2.1, or the limit under Rule 5, the Board shall scale down
         applications in accordance with Rule 3.1(a) to (f) in such order and
         combinations as the Board in its absolute discretion may determine
         except that provisions (d) and (e) must not be applied before (a) to
         (c) until the number of Shares available equals or exceeds such total
         number of Shares applied for:

         (a)    by treating any elections for the seven-year bonus as elections
                for the five-year bonus;

         (b)    by reducing the proposed Monthly Contributions pro rata to the
                excess over such amount as the Company shall determine for this
                purpose being not less than the minimum Monthly Contribution
                permitted under the Savings Contract;

         (c)    by treating each election for a bonus as an election for no
                bonus;

         (d)    by treating an application for a five-year Savings Contract as
                an application for a three-year Savings Contract;

         (e)    by selecting by lot;

         (f)    by such other method of scaling down determined by the Board as
                may be acceptable to the Inland Revenue.

3.2      If the number of Shares available is insufficient to enable an Option
         based on Monthly Contributions of L 5 a month to be granted to each
         Eligible Employee making a valid application, the Board may, as an
         alternative to selecting by lot, determine in its absolute discretion
         that no Options shall be granted.

3.3      If the Board so determines, the provisions in Rule 3.1 may be modified
         or applied in any manner as may be agreed in advance with the Inland
         Revenue.

3.4      If, in applying the scaling down provisions contained in this Rule 3,
         Options cannot be granted within the 30-day period referred to in Rule
         4.2 below, the Board may extend that period by 12 days.

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4.       GRANT OF OPTIONS

4.1      No Option shall be granted to any person if at the Date of Grant that
         person shall have ceased to be an Eligible Employee.

4.2      Within 30 days (subject to the application of Rule 3.4) of any day by
         reference to which the Option Price was fixed the Board may, subject to
         Rule 3 above, grant to each Eligible Employee who has submitted a valid
         application, an Option in respect of the number of Shares for which
         application has been deemed to be made under Rule 2.6.

4.3      The Board shall issue to each Participant an option certificate in such
         form (not inconsistent with the provisions of the Scheme) as the Board
         may from time to time prescribe. Each such certificate shall specify
         the Date of Grant of the Option, the number and class of Shares over
         which the Option is granted, the Option Price and the Bonus Date.

4.4      Except as otherwise provided in these Rules, every Option shall be
         personal to the Participant to whom it is granted and shall not be
         transferable.

4.5      No amount shall be paid in respect of the grant of an Option.

5.       NUMBER OF NEW SHARES IN RESPECT OF WHICH OPTIONS MAY BE GRANTED

         Subject to adjustment under Rule 10, Options may be granted under the
         Scheme for up to 500,000 Shares. If any Option expires or is
         terminated, surrendered or canceled without having been fully exercised
         or it is forfeited in whole or in part (including as the result of
         Shares subject to such Option being repurchased by the Company at the
         original issuance price pursuant to a contractual repurchase right) or
         results in any Shares not being issued, the unused Shares covered by
         such Option shall again be available for the grant of Options under the
         Scheme. Shares issued pursuant to Options under the Scheme may consist
         in whole or in part of authorized but unissued shares or treasury
         shares.

6.       RIGHTS OF EXERCISE AND LAPSE OF OPTIONS

6.1      Save as provided in Rules 6.5, 6.6, 6.7 and Rule 7, an Option shall not
         be exercised earlier than the Bonus Date under the Savings Contract
         entered into in connection therewith.

6.2      Save as provided in Rule 6.5, an Option shall not be exercised later
         than six months after the Bonus Date under the Savings Contract entered
         into in connection therewith.

6.3      Save as provided in Rules 6.5 and 6.6, an Option may only be exercised
         by a Participant whilst he is a director or employee of a Participating
         Company.

6.4      An Option may not be exercised by a Participant if he is ineligible to
         participate in the Scheme by virtue of paragraph 11 of Schedule 3 to
         the Act (as supplemented by paragraphs 12, 13 and 14 of Schedule 3 to
         the Act).

6.5      An Option may be exercised by the personal representatives of a
         deceased Participant:

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         (a)    within twelve months following the date of his death if such
                death occurs before the Bonus Date;

         (b)    within twelve months following the Bonus Date in the event of
                his death within six months after the Bonus Date.

6.6      An Option may be exercised by a Participant within six months following
         his ceasing to hold the office or employment by virtue of which he is
         eligible to participate in the Scheme by reason of:

         (a)    injury, disability, redundancy within the meaning of the
                Employment Rights Act 1996, or retirement on reaching the
                Specified Age or any other age at which he is bound to retire in
                accordance with the terms of his contract of employment; or

         (b)    his office or employment being in a company of which the Company
                ceases to have Control; or

         (c)    the transfer of his contract of employment (which relates to a
                business or part of a business) to a person who is neither an
                Associated Company nor a company of which the Company has
                Control.

6.7      An Option may be exercised within six months of the Bonus Date by a
         Participant who is a director or employee of a company which is not a
         Participating Company but which is:

         (a)    an Associated Company of the Company; or

         (b)    a company of which the Company has Control.

6.8      An Option may be exercised by a Participant within six months following
         the date he reaches the Specified Age if he continues after that date
         to hold the office or employment by virtue of which he is eligible to
         participate in the Scheme.

6.9      No person shall be treated for the purposes of Rule 6.6 as ceasing to
         hold an office or employment by virtue of which that person is eligible
         to participate in the Scheme until that person ceases to hold any
         office or employment in the Company or any Associated Company or any
         company of which the Company has Control.

6.10     An Option granted to a Participant shall lapse upon the occurrence of
         the earliest of the following:

         (a)    subject to Rule 6.10(b) below, six months after the Bonus Date
                under the Savings Contract entered into in connection with the
                Option;

         (b)    where the Participant dies before the Bonus Date, twelve months
                after the date of death, and where the Participant dies in the
                period of six months after the Bonus Date, twelve months after
                the Bonus Date;

         (c)    the expiry of any of the six month periods specified in Rule
                6.6(a) to (c), save that if at the time any of such applicable
                periods expire, time is running under the twelve-month period
                specified in Rule 6.5, the Option shall not lapse by

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                reason of this Rule 6.10 until the expiry of the relevant
                twelve-month period in Rule 6.5;

         (d)    the expiry of any of the periods specified in Rules 7.3 to 7.5,
                save where an Option is released in consideration of the grant
                of a New Option over New Shares in the Acquiring Company (during
                one of the periods specified in Rules 7.3 and 7.4) pursuant to
                Rule 7.6;

         (e)    the Participant ceasing to hold any office or employment with a
                Participating Company or any Associated Company for any reason
                other than those specified in Rule 6.6;

         (f)    subject to Rule 7.5, the passing of an effective resolution, or
                the making of an order by the court, for the winding-up of the
                Company;

         (g)    the Participant being deprived (otherwise than on death) of the
                legal or beneficial ownership of the Option by operation of law,
                or doing anything or omitting to do anything which causes him to
                be so deprived or become bankrupt; and

         (h)    before an Option has become capable of being exercised, the
                Participant giving notice that he intends to stop paying Monthly
                Contributions, or being deemed under the terms of the Savings
                Contract to have given such notice, or making an application for
                repayment of the Monthly Contributions.

7.       TAKEOVER, RECONSTRUCTION AND AMALGAMATION, LIQUIDATION AND
         REORGANIZATION

7.1      If any person obtains Control of the Company as a result of making an
         offer to acquire Shares which is either unconditional or is made on a
         condition such that if it is satisfied the person making the offer will
         have Control of the Company, an Option may be exercised within six
         months of the time when the person making the offer has obtained
         Control of the Company and any condition subject to which the offer is
         made has been satisfied or waived.

7.2      For the purpose of Rule 7.1, a person shall be deemed to have obtained
         Control of the Company if he and others acting in concert with him have
         together obtained Control of it.

7.3      If any person becomes bound or entitled to acquire Shares under the
         sections 428 to 430F (inclusive) of the Companies Act 1985 (or non-UK
         equivalent) an Option may be exercised at any time when that person
         remains so bound or entitled.

7.4      If, under section 425 of the Companies Act 1985 (or non-UK equivalent),
         the court sanctions a compromise or arrangement proposed for the
         purposes of, or in connection with, a scheme for the reconstruction of
         the Company or its amalgamation with any other company or companies, an
         Option may be exercised within six months of the court sanctioning the
         compromise or arrangement.

7.5      If a resolution for the voluntary winding-up of the Company is passed,
         an Option may be exercised within two months from the date of the
         passing of the resolution.

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7.6      If any company (the "Acquiring Company"):

         (a)    obtains Control of the Company as a result of making:

                (i)     a general offer to acquire the whole of the issued
                        ordinary share capital of the Company which is made on a
                        condition such that if it is satisfied the Acquiring
                        Company will have Control of the Company; or

                (ii)    a general offer to acquire all the shares in the Company
                        which are of the same class as the Shares which may be
                        acquired by the exercise of Options,

                in either case ignoring any Shares which are already owned by it
                or a member of the same group of companies; or

         (b)    obtains Control of the Company in pursuance of a compromise or
                arrangement sanctioned by the court under the section 425 of the
                Companies Act 1985 (or non-UK equivalent); or

         (c)    becomes bound or entitled to acquire Shares under the sections
                428 to 430F (inclusive) of the Companies Act 1985 (or non-UK
                equivalent),

         any Participant may at any time within the Appropriate Period, by
         agreement with the Acquiring Company, release any Option granted under
         the Scheme which has not lapsed ("Old Option") in consideration of the
         grant to him of an option ("New Option") which (for the purposes of
         paragraph 39 of Schedule 3 to the Act) is equivalent to the Old Option
         but relates to shares in a different company (whether the Acquiring
         Company itself or some other company falling within paragraph (b) or
         (c) of paragraph 18 of Schedule 3 to the Act).

7.7      The New Option shall not be regarded for the purposes of Rule 7.6 as
         equivalent to the Old Option unless the conditions set out in paragraph
         39 of Schedule 3 to the Act are satisfied. Where the provisions of Rule
         7.7 apply, the provisions of the Scheme shall be construed as if:

         (a)    the New Option were granted under the Scheme at the same time as
                the Old Option;

         (b)    except for the purposes of the definitions of "Participating
                Company" and "Subsidiary" in Rule 1, the reference to Bookham,
                Inc. in the definition of the "Company" in Rule 1 were a
                reference to the different company mentioned in Rule 7.6.

7.8      In connection with a Reorganization Event, the Board may, at its
         discretion, take any one or more of the following actions as to all or
         any outstanding Options on such terms as the Board determines: (i)
         provide that Options shall be assumed or substantially equivalent
         Options shall be substituted by the acquiring or succeeding corporation
         (or an affiliate thereof), (ii) upon written notice to a Participant,
         provide that the Participant's unexercised Options or other unexercised
         Options shall become exercisable in full and will terminate immediately
         prior to the consummation of such Reorganization Event unless exercised
         by the Participant within a specified period

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         following the date of such notice, (iii) provide that outstanding
         Options shall become realizable or deliverable, or restrictions
         applicable to an Option shall lapse, in whole or in part prior to or
         upon such Reorganization Event, (iv) in the event of a Reorganization
         Event under the terms of which holders of common stock will receive
         upon consummation thereof a cash payment for each share surrendered in
         the Reorganization Event (the "Acquisition Price"), make or provide for
         a cash payment to a Participant equal to (A) the Acquisition Price
         times the number of shares of common stock subject to the Participant's
         Options (to the extent the exercise price does not exceed the
         Acquisition Price) minus (B) the aggregate exercise price of all such
         outstanding Options, in exchange for the termination of such Options,
         (v) provide that, in connection with a liquidation or dissolution of
         the Company, Options shall convert into the right to receive
         liquidation proceeds (if applicable, net of the exercise price thereof)
         and (vi) any combination of the foregoing.

         For purposes of Rule 7.8(i) above, an Option shall be considered
         assumed if, following consummation of the Reorganization Event, the
         Option confers the right to purchase, for each Share subject to the
         Option immediately prior to the consummation of the Reorganization
         Event, the consideration (whether cash, securities or other property)
         received as a result of the Reorganization Event by holders of common
         stock for each share of common stock held immediately prior to the
         consummation of the Reorganization Event (and if holders were offered a
         choice of consideration, the type of consideration chosen by the
         holders of a majority of the outstanding shares of common stock);
         provided, however, that if the consideration received as a result of
         the Reorganization Event is not solely common stock of the acquiring or
         succeeding corporation (or an affiliate thereof), the Company may, with
         the consent of the acquiring or succeeding corporation, provide for the
         consideration to be received upon the exercise of Options to consist
         solely of common stock of the acquiring or succeeding corporation (or
         an affiliate thereof) equivalent in fair market value to the per share
         consideration received by holders of outstanding shares of common stock
         as a result of the Reorganization Event.

         To the extent all or any portion of an Option becomes exercisable
         solely as a result of Rule 7.8(ii) above, the Board may provide that
         upon exercise of such Option the Participant shall receive shares
         subject to a right of repurchase by the Company or its successor at the
         Option exercise price; such repurchase right (x) shall lapse at the
         same time as the Option would have become exercisable under its terms
         and (y) shall not apply to any shares subject to the Option that were
         exercisable under its terms without regard to Rule 7.8(ii) above.

8.       MANNER OF EXERCISE

8.1      An Option may only be exercised during the periods specified in Rules 6
         and 7, and only with monies not exceeding the amount of the repayment
         (including if applicable any Bonus or interest) under the Savings
         Contract entered into in connection therewith as at the date of such
         exercise. For this purpose, no account shall be taken of such part (if
         any) of the repayment of any Monthly Contribution, the due date for the
         payment of which under the Savings Contract arises after the date of
         such repayment.

8.2      Exercise shall be by the delivery to the Secretary of the Company or
         other duly appointed agent, of an option certificate covering the
         Shares over which the Option is then to be exercised, with the notice
         of exercise in the prescribed form duly completed

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         by the Participant (or by his duly authorised agent) together with any
         remittance for the Exercise Price payable, or authority to the Company
         and the Board to withdraw and apply monies equal to the Exercise Price
         from the Savings Contract, to acquire the Shares over which the Option
         is to be exercised. The effective date of exercise shall be the date of
         delivery of the notice of exercise.

9.       ISSUE OR TRANSFER OF SHARES

9.1      The Board shall procure that Shares to be issued pursuant to the
         exercise of an Option shall be allotted within 28 days following the
         effective date of exercise of the Option.

9.2      Where relevant, the Board shall procure the transfer of Shares
         (including a transfer from the Company's holding of treasury shares, if
         any) to be transferred pursuant to the exercise of an Option within 28
         days following the effective date of exercise of the Option.

9.3      Shares to be issued pursuant to the Scheme will rank PARI PASSU in all
         respects with the Shares then in issue, except that they will not rank
         for any rights attaching to Shares by reference to a record date
         preceding the date of exercise.

9.4      Shares to be transferred (whether from the Company's holding of
         treasury shares or otherwise) pursuant to the Scheme will be
         transferred free of all liens, charges and encumbrances and together
         with all rights attaching thereto, except they will not rank for any
         rights attaching to Shares by reference to a record date preceding the
         date of exercise.

10.      ADJUSTMENTS

10.1     The number of Shares over which an Option is granted and the Option
         Price thereof shall be adjusted in such manner as the Board shall
         determine following any capitalisation issue, rights issue,
         subdivision, consolidation or reduction of share capital of the Company
         or any other variation of share capital to the intent that (as nearly
         as may be without involving fractions of a Share or an Option Price
         calculated to more than two places of decimals) the Exercise Price
         payable in respect of an Option shall remain unchanged, provided that
         no adjustment made pursuant to this Rule 10.1 shall be made without the
         prior approval of the Inland Revenue (so long as the Scheme is approved
         by the Inland Revenue).

10.2     The Board may take such steps as it may consider necessary to notify
         Participants of any adjustment made under this Rule 10 and to call in,
         cancel, endorse, issue or reissue any Option certificate consequent
         upon such adjustment.

11.      ADMINISTRATION

11.1     Any notice or other communication made under, or in connection with,
         the Scheme may be given by personal delivery, electronic mail, internet
         or intranet access, facsimile transmission or by sending the same by
         post, in the case of a company to its registered office and in the case
         of an individual to his last known address, or, where he is a director
         or employee of the Company or an Associated Company, either to his last
         known address or to the address of the place of business at which he
         performs the whole or substantially the whole of the duties of his
         office or employment, and where

                                       12
<Page>

         a notice or other communication is given by first-class post, it shall
         be deemed to have been received 48 hours after it was put into the post
         properly addressed and stamped.

11.2     The Company may (but need not) distribute to Participants copies of any
         notice or document normally sent by the Company to the holders of
         Shares.

11.3     If any option certificate shall be worn out, defaced or lost, it may be
         replaced on such evidence being provided as the Board may require.

11.4     The Company shall at all times keep available for allotment unissued
         Shares at least sufficient to satisfy all Options under which new
         Shares may be subscribed or procure that sufficient Shares are
         available for transfer (whether from the Company's holding of Treasury
         Shares or otherwise) to satisfy all Options under which Shares may be
         acquired.

11.5     The decision of the Board in any dispute relating to an Option or the
         due exercise thereof or any other matter in respect of the Scheme shall
         be final and conclusive.

11.6     The costs of introducing and administering the Scheme shall be borne by
         the Company.

12.      ALTERATIONS

12.1     Subject to Rule 12.2, the Board may at any time alter or add to all or
         any of the provisions of the Scheme in any respect, provided that if an
         alteration or addition to a Key Feature is made at a time when the
         Scheme is approved by the Inland Revenue under Schedule 3 to the Act it
         shall not have effect until it has been approved by the Inland Revenue.

12.2     No alteration or addition shall be made under Rule 12.1 which would
         abrogate or adversely affect the subsisting rights of a Participant
         unless it is made with each relevant Participant's consent.

12.3     As soon as reasonably practicable after making any alteration or
         addition under Rule 12.1, the Board shall give written notice thereof
         to any Participant affected thereby.

13.      GENERAL

13.1     The Scheme shall terminate upon the tenth anniversary of its adoption
         or at any earlier time by the passing of a resolution by the Board.
         Termination of the Scheme shall be without prejudice to the subsisting
         rights of Participants.

13.2     The Scheme shall extend to any Jointly Owned Company which is
         designated by the Board as a Participating Company provided that the
         Scheme shall cease to apply to such company in the event that:

         (a)    the Jointly Owned Company falls under the control of any single
                person;

         (b)    the Company ceases to be one of the joint owners of the Jointly
                Owned Company;

         (c)    any company controlled by the Jointly Owned Company is no longer
                so

                                       13
<Page>

                controlled,

         unless those companies become controlled by the Company or any
         Subsidiary of the Company.

13.3     If Shares are transferred to the Participant following the exercise of
         an Option, the Participant shall if required to do so by the person
         making the transfer, join that person in making a claim for relief
         under Section 165 of the Taxation of Chargeable Gains Act 1992 in
         respect of the disposal of Shares to the Participant.

13.4     The rights and obligations of any individual under the terms of his
         office or employment with the Company, a Participating Company, a
         Subsidiary of the Company, or an Associated Company shall not be
         affected by his participation in the Scheme or any right which he may
         have to participate therein, and an individual who participates therein
         shall waive all and any rights to compensation or damages in
         consequence of the termination of his office or employment with any
         such company for any reason whatsoever insofar (including, without
         prejudice to the generality of the foregoing wrongful dismissal or
         dismissal in breach of contract) as those rights arise, or may arise,
         from his ceasing to have rights under or be entitled to exercise any
         Option under the Scheme as a result of such termination, or from the
         loss or diminution in value of such rights or entitlements.

13.5     It is a condition of participation in this Scheme that a Participant
         agrees to the holding of information about him by the Company and that
         he authorises the Company and its agents and advisers to use such
         information according to these Rules for the purposes of this Scheme.
         It is a further condition of participation in this Scheme that each
         Participant agrees that data concerning his participation may be
         processed by agents of the Company wherever located and where necessary
         transmitted outside the United Kingdom.

13.6     These Rules shall be governed by and construed in accordance with
         English law.

                                       14
<Page>

                                  BOOKHAM, INC.

                              2004 SHARESAVE SCHEME

                               OPTION CERTIFICATE

Certificate No...........................               Account No..............

This is to certify that
................................................................. is the holder
of an option to acquire a maximum of ..................... shares of common
stock at an Exercise Price of ........................................ subject
to and in accordance with the Rules of the Scheme.

This option was granted on ................................................
Total Exercise Price (Cost of Shares) on exercise in full.....................
This option is normally exercisable on .........................................
and for a period of six calendar months thereafter, subject however to any
exceptions permitted by the Rules of the Scheme.

This option is personal to the option holder or his/her legal personal
representatives. It is not transferable and will be cancelled immediately in the
case of any purported assignment, charge, disposal or dealing with the rights
conveyed by it.

Signed

For Bookham, Inc.

[Position]

THIS CERTIFICATE IS IMPORTANT AND SHOULD BE KEPT SAFELY WITH YOUR PERSONAL
PAPERS.

<Page>

                                  BOOKHAM, INC.

                              2004 SHARESAVE SCHEME

                               NOTICE OF EXERCISE

To: [Savings provider]

PLEASE COMPLETE USING BLOCK CAPITALS

Name      ............................    Name      ............................

Address   ............................    Address   ............................

          ............................              ............................

          ............................              ............................

CAPACITY:     option holder/personal representative(s) (delete as necessary)

1    I/We hereby exercise the option referred to in the option certificate
     overleaf in respect of ............................ * of the shares of
     common stock to which I am/we are entitled (* if you do not wish to take up
     your full entitlement of shares, please insert the lesser number which you
     wish to acquire).

     I/We agree to the issue of shares of common stock to me/us/my nominee
     subject to the Company's Certificate of Incorporation and by-laws.

2    I/We hereby exercise the option   / /   on completion of the savings
                                             contract

                                       / /   on leaving employment before
                                             completing the savings contract

                                       / /   as personal representative(s) -
                                             refer to note (a) below

                                       (Please tick appropriate box)

3    Delete as appropriate:

(a)  I/We authorise the Company to deduct from the Sharesave account the sum of
     .................... being the aggregate exercise price of the shares of
     common stock mentioned above and being not more than the amount repayable
     under the Sharesave contract. Any balance outstanding is to be returned to
     me/us.

(b)  I/We enclose herewith a cheque for the sum of .............................
     made payable to [savings provider] and crossed "a/c payee" being the
     aggregate exercise price of the shares of common stock mentioned above and
     being not more than the amount repaid under the Sharesave contract.

4    I/We request you to despatch a stock certificate for shares of common stock
     registered in my/our name(s)/the name of my nominee by ordinary post at
     my/our risk to the address set out above (personal representative(s) please
     refer to note (e) below).

     Signed     ..........................          Signed .....................

     Date       ..........................          Date   .....................

NOTES

(a)  Only the option holder named in the option certificate or, in the event of
     his or her death, his or her legal personal representative(s) are entitled
     to exercise an option in accordance with the rules. If such legal personal
     representative(s) exercise the option, the Grant of Probate or Letters of
     Administration or other evidence satisfactory to the Company must accompany
     this notice.

(b)  The number of shares of common stock applied for should be clearly
     indicated and must not exceed the number of shares specified overleaf.

(c)  The remittance should be for an amount equal to the exercise price per
     share of common stock shown overleaf, multiplied by the number of shares of
     common stock applied for.

(d)  The option holder (or personal representative(s)) may be required to
     produce evidence as to the repayments under the related Sharesave contract
     in support of the declaration in paragraph 3(b) above.

(e)  Personal representative(s) should note that the stock certificate will be
     sent to the first address given, unless written notice to the contrary is
     received with this notice.<Page>

                                                                   Exhibit 10.23

                                  20 July 2004

                             BOOKHAM TECHNOLOGY PLC

                                       AND

                                 GIORGIO ANANIA

                                   ----------

                                  BONUS SCHEME

                                   ----------

                    Wilmer Cutler Pickering Hale and Dorr LLP
                                    Park Gate
                                 25 Milton Park
                                 Oxford OX14 4SH
                           Tel:   +44 (0)1235 823 000
                           Fax:   +44 (0)1235 823 030
                             Ref: DAA/0107708/00150

<Page>

THIS DEED is made the 20th day of July 2004.

BETWEEN:

1.   BOOKHAM TECHNOLOGY PLC a company registered under number 02298887 with its
     registered office at 90 Milton Park, Milton, Abingdon, Oxfordshire, OX14
     4RY (the "Company"); and

2.   DR GIORGIO ANANIA of 22 The Chestnuts, Abingdon, Oxfordshire, OX14 3YN
     ("you").

OPERATIVE TERMS:

1.   In this Deed, the following words and expressions have, unless the context
     otherwise requires, the following meanings:

     "ACTING IN CONCERT"         the meaning given to that expression in The
                                 City Code on Takeovers and Mergers in its
                                 present form or as amended or substituted from
                                 time to time;

     "BOARD"                     means the Board of Directors of the Company
                                 from time to time

     "BOARD CHANGE"              means any change to the composition of the
                                 Board such that the Continuing Directors (as
                                 defined below) cease to constitute a majority
                                 of the Board;

     "BUSINESS SALE"             means the sale of all or substantially all the
                                 undertaking and assets of the Group in one
                                 transaction or a series of transactions;

     "CHANGE OF CONTROL"         means a: (a) Business Sale; (b) Merger; (c)
                                 Sale; or (d) Board Change, PROVIDED ALWAYS THAT
                                 neither: (x) a Group Reconstruction; nor (y) a
                                 Board Change immediately following a Group
                                 Reconstruction, shall amount to a Change of
                                 Control;

     "CHANGE OF CONTROL CLOSING  means the effective date of the Change of
     DATE"                       Control;

     "CONTINUING DIRECTORS"      means those directors appointed to the Board
                                 who: (a) are members of the Board on the date
                                 of this Deed; and (b) are nominated or elected
                                 subsequent to the date of this Deed by at least
                                 a majority of the directors who were Continuing
                                 Directors at the time of such nomination or
                                 election or whose election to the Board was
                                 recommended or endorsed by at least a majority
                                 of the directors who were Continuing Directors
                                 at the time of such nomination or election;
                                 PROVIDED that a director shall not be a
                                 Continuing Director where the director's
                                 initial assumption of

<Page>

                                 office occurred as a result of an actual or
                                 threatened election contest with respect to the
                                 election or removal of directors or other
                                 actual or threatened solicitation of proxies or
                                 consents, by or on behalf of a person other
                                 than the Board;

     "GROUP"                     means the Company and its Group Companies;

     "GROUP COMPANY"             means a company and/or corporation in any
                                 jurisdiction: (a) which from time to time is
                                 the Holding Company or a Subsidiary of the
                                 Company; (b) which from time to time is
                                 directly or indirectly a Subsidiary of the
                                 Holding Company (excluding the Company); and
                                 (c) over which the Company or the Holding
                                 Company has control within the meaning of
                                 Section 840 of the Income and Corporation Taxes
                                 Act 1988 and the term "Group Companies" shall
                                 be a reference to each and every Group Company;

     "GROUP RECONSTRUCTION"      means: (a) a sale, transfer or disposition of
                                 the entire issued share capital of the Company
                                 to a company, the shareholders of which are
                                 substantially the same as those of the Company
                                 in substantially the same proportions; (b) a
                                 sale of all or substantially all the
                                 undertaking and assets of the Group in one
                                 transaction or a series of transactions to a
                                 company, the shareholders of which are
                                 substantially the same as those of the Company
                                 in substantially the same proportions; or (c) a
                                 scheme of reconstruction or arrangement whereby
                                 the entire issued share capital of the Company
                                 is cancelled by court order, the Company
                                 becomes owned by a company, the shareholders of
                                 which are substantially the same as those of
                                 the Company in substantially the same
                                 proportions;

     "HOLDING COMPANY"           means the direct or indirect holding company of
                                 the Company where the term "holding company"
                                 has the meaning attributed to it by section 736
                                 of the Companies Act 1985;

     "MERGER"                    means, a merger or consolidation of the Company
                                 with any other company or corporation where, as
                                 a result of such merger or consolidation, the
                                 voting securities of the Company outstanding
                                 immediately prior thereto do not continue to
                                 represent (either by remaining outstanding or
                                 by being converted into voting securities of
                                 the surviving entity, including the holding
                                 company of such surviving entity) more than
                                 fifty percent (50%) of the total voting power
                                 represented by the voting securities of the
                                 Company

<Page>

                                 or such surviving entity outstanding
                                 immediately after such merger or consolidation;

     "SALE"                      means the sale, transfer or disposition of any
                                 part of the Company's share capital to any
                                 person resulting in that person, together with
                                 any person Acting in Concert with such person,
                                 holding more than 50% of the Company's issued
                                 share capital; and

     "SUBSIDIARY"                shall have the meaning attributed to it by
                                 section 736 of the Companies Act 1985.

2.   Subject to clause 3 of this Deed, the Company agrees to pay to you the sum
     of L 300,000 in the event of a Change of Control, PROVIDED that you are in
     the employment of any company in the Group on:

2.1  the Change of Control Closing Date; or

2.2  the date one month prior to the date upon which the Company enters into a
     contract binding it to the applicable Business Sale, Merger or Sale
     constituting the Change of Control providing that your employment is not
     summarily (i.e. without notice or any payment in lieu of notice) and
     lawfully terminated by the Company (or the relevant company in the Group)
     prior to the Change of Control Date on the grounds of your gross
     misconduct; or

2.3  on the date one month prior to the applicable Board Change constituting the
     Change of Control providing that your employment is not summarily (i.e.
     without notice or any payment in lieu of notice) and lawfully terminated by
     the Company (or the relevant company in the Group) prior to the Change of
     Control Date on the grounds of your gross misconduct.

3.   The payment under this Deed shall be made without regard to whether the
     deductibility of such payment (or any other "parachute payments," as that
     term is defined in Section 280G of the United States Internal Revenue Code
     of 1986, as amended (the "Code"), to or for your benefit) would be limited
     or precluded by Section 280G and without regard to whether such payment (or
     any other "parachute payments" as so defined) would subject you to the
     federal excise tax levied on certain "excess parachute payments" under
     Section 4999 of the Code; provided that if the total of all "parachute
     payments" to or for your benefit, after reduction for all federal, state
     and local taxes (including the tax described in Section 4999 of the Code,
     if applicable) with respect to such payments (the "Total After-Tax
     Payments"), would be increased by the limitation or elimination of any
     payment under this Deed or any "parachute payments" under other agreements
     or arrangements between you and the Company, then the amount payable under
     this Deed (or the "parachute payment" under such other agreement or
     arrangement as the Company and you shall mutually determine) shall be
     reduced to the extent, and only to the extent, necessary to maximize the
     Total After-Tax Payments. The determination as to whether and to what
     extent the payment under this Deed (or the "parachute payment" under such
     other agreement or arrangement) are required to be reduced in accordance
     with the preceding sentence shall be made at the Company's expense by Ernst
     & Young or by such other certified public accounting firm as the Board may
     designate prior to a

<Page>

     Change in Control of the Company. In the event of any underpayment or
     overpayment under this Deed (or such other agreement or arrangement) as
     determined by Ernst & Young (or such other firm as may have been designated
     in accordance with the preceding sentence), the amount of such underpayment
     or overpayment shall forthwith be paid to you or refunded to the Company,
     as the case may be, with interest at the applicable federal rate provided
     for in Section 7872(f)(2) of the Code.

4.   The payment due to you under this Deed shall be made to you on the Change
     of Control Closing Date and will be subject to applicable deductions for
     income tax, employee's national insurance contributions and any other taxes
     or withholdings required by law in any jurisdiction.

5.   In the event of a Group Reconstruction, the Company undertakes to procure
     the novation or assignment of this Deed to the Holding Company, so that the
     Holding Company undertakes to be bound by and perform this Deed in every
     way as if the Holding Company had been a party to it in place of the
     Company.

6.   This Deed is supplemental to any service agreement or contract of
     employment between the Company and you and is not in substitution for and
     is not intended to supersede any such service agreement or contract of
     employment.

7.   This Deed shall be construed in accordance with the laws of England and the
     parties submit to the exclusive jurisdiction of the English Courts.

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

EXECUTED AND DELIVERED AS A DEED BY
BOOKHAM TECHNOLOGY PLC
ACTING BY:-                              /s/ Peter Bordui
                                         ----------------
                                         Director

                                         /s/ Philip Davis
                                         ----------------
                                         Secretary

EXECUTED AND DELIVERED AS A DEED
BY GIORGIO ANANIA:                       /s/ Giorgio Anania
in the presence of:-                     ------------------

Signature of witness                     /s/ Helen Swan
                                         --------------

Name of witness                          Helen Swan
                                         ----------

Address of witness                       Five Acres, Brightwell Cum Sotwell
                                         ----------------------------------
                                         Wallingford, Oxfordshire OX10 0PX
                                         ---------------------------------

Occupation of witness                    PA
                                         --

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