Document:

Offer of Employment between Cal Hoagland and the Registrant

 Exhibit 10.4 
 March 24, 2006 
 Mr. Cal Hoagland 
 OFFER OF EMPLOYMENT 
 Dear Cal: 
 I am very pleased to extend to you this offer of employment to join Avanex (the “Company”). 
 The position offered to you is that of Senior Vice President, Chief Financial Officer. Your place of work will be at the Company’s offices in Fremont, California and you will report to Jo Major, President and
CEO. This is a full-time, regular, exempt position of considerable responsibility, integral to our continued business development and success. In this position you will be expected to devote your full business time, attention and energies to the
performance of your duties with the Company. 
 The specifics of this offer are as follows: 
 Base Salary: You will be compensated at a bi-weekly rate of $10,000.00, paid every other Friday, subject to the usual, required withholding in accordance with the Company’s normal payroll procedures.
(This represents an equivalent annual rate of pay of $260,000.00). 
 Annual Bonus: You will be eligible to participate in the Executive Bonus
Plan in accordance with the guidelines as established by the Compensation Committee of the Board. Under this plan your annual target bonus amount will be 60% of your base salary. 
 Stock Options: Subject to approval by the Compensation Committee of the Board of Directors, you will be granted a stock option under terms and conditions of the grant agreement under the Company’s 1998
Stock Plan (the “Plan”), as attached and incorporated herein, to purchase 450,000 shares of the Company’s Common Stock at an exercise price equal to the then current fair market value on the date of grant, as determined under the Plan
(the “Option”). 
 Restricted Stock Units: Subject to approval by the Compensation Committee of the Board of Directors, you will be granted
250,000 shares of restricted stock unit under the terms and conditions of the grant agreement under Company’s 1998 Stock Plan, as attached and incorporated herein. The terms and conditions of the grant will be included in the Grant Agreement
after 6-8 weeks of your start date. 

 Offer of Employment 
 Page 2

 Employment Terms: 
  

	 	•	 	In the event that Mr. Hoagland’s employment is terminated without cause after the commencement of employment, he shall be entitled to receive severance according to the
Company’s standard severance policy for executive officers of the company, as incorporated herein. 

  

	 	•	 	For this purpose, “cause” is defined as (1) any act of personal dishonesty taken by you in connection with your responsibilities as an employee and intended to result
in your substantial personal enrichment, (2) your conviction of a felony that is injurious to Avanex, or (3) a willful act by you that constitutes gross misconduct and which is injurious to Avanex. 

  

	 	•	 	The change in control and acceleration of vesting and post-termination periods of exercisability will be determined by the standard policy under the 1998 stock plan and stock
agreements between you and the Company, both of which documents are incorporated by reference. 

 Target
Start Date: April 10, 2006. 
 Benefits: As a regular employee, you will be eligible to participate in Avanex’s benefits plans and
programs available to U.S. full time employees, in accordance with the terms of those plans. 
 At-Will Employment: You should be aware that your
employment with the Company constitutes “at-will” employment. This means that your employment relationship with the Company may be terminated at any time with or without notice, with or without good cause or for any or no cause, at either
party’s option. You understand and agree that neither your job performance nor promotions, commendations, bonuses or the like from the Company give rise to or in any way serve as the basis for modification, amendment, or extension, by
implication or otherwise, of your at-will employment with the Company. 
 Conflict of Interest: You agree that, during the term of your employment
with the Company, you will not engage in any other employment, occupation, consulting or other business activity directly related to the business in which the Company is now involved or becomes involved during the term of your employment, nor will
you engage in any other activities that conflict with your obligations to the Company. 
 In accepting this offer, you are representing to the Company that
(a) you are not a party to any employment agreement or other contract or arrangement which prohibits your full-time employment with the Company, (b) you do not know of any conflict which would restrict your 

 Offer of Employment 
 Page 3

 employment with the Company and (c) you have not and will not bring with you to your employment with the Company any documents, records or other
confidential information belonging to former employers. We ask that, if you have not already done so, you disclose to the Company any and all agreements relating to your prior employment that may affect your eligibility to be employed by the Company
or limit the manner in which you may be employed. 
 Employment, Confidential Information, and Invention Assignment Agreement: As a condition of your
employment with the Company, you must sign and comply with an Employment, Confidential Information, and Invention Assignment Agreement which requires, among other provisions, the assignment of rights to any invention made during your employment at
Avanex and non-disclosure of proprietary information. As a Company employee, you will be required to sign an acknowledgment that you have read and understand the Company policies and procedures (as set forth on the Company’s Outlook
“Public Files” system or other similar electronic system that the Company may designate), and you will be expected to abide by all Company policies and procedures.  
 Indemnification Agreement: The Company will offer you the opportunity to become a party to its standard form of indemnification agreement for officers and directors. 
 Arbitration Agreement: As a condition of your employment, you are also required to sign and comply with an Arbitration Agreement. Among other provisions, the
Arbitration Agreement provides that in the event of certain disputes or claims relating to or arising out of our employment relationship, you and the Company agree that (i) those disputes between you and the Company shall be fully and finally
resolved by binding arbitration, (ii) you are waiving any and all rights to have such disputes resolved in court by a judge or jury; (iii) the arbitrator shall have the power to award any remedies available under applicable law, except
attorneys’ fees and costs, which can be awarded to the prevailing party only if authorized by statute or contract, (iv) such disputes shall be resolved by a neutral arbitrator, and (v) the Company shall pay for any administrative or
hearing fees charged by the arbitrator. Please note that we must receive your signed Arbitration Agreement before your first day of employment. 
 I-9
Employment Eligibility Verification: For purposes of federal immigration law, you will be required to provide to the Company documentary evidence of your identity and eligibility for employment in the United States. Such documentation must be
provided to us within three (3) business days of your date of hire, or our employment relationship with you may be terminated. 

 Offer of Employment 
 Page 4

 Governing Law: The internal substantive laws, but not the choice of law rules, of the State of California, shall govern this letter. You hereby
agree to exclusive personal jurisdiction and venue in the state and federal courts of the state of California. 
 Severability: In the event that any
provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable, or void, this letter shall continue in full force and effect without such provision. 
 General: This letter, along with the other aforementioned employment-related agreements and stock option described above, set forth the terms of your employment
with the Company and supersede in their entirety any and all prior agreements and understandings concerning your employment relationship with the Company, whether written or oral. The terms of this letter may only be amended, canceled or discharged
in writing signed by an authorized representative of the Company and by you. 
 We would appreciate a response to this offer no later than March 17,
2006. To indicate your acceptance of this offer, please sign and date this letter in the space provided below and return it to Human Resources. A duplicate original is enclosed for your records. 
 Cal, it is a pleasure extending this offer to you. We are hopeful that you recognize, as we do, the tremendous opportunity we have ahead of us and we welcome you to the
Avanex team. 
 Sincerely, 
  

	
	 /s/ Jo Major

 AVANEX CORPORATION 
 Jo Major 
 President and CEO 
  

					
	Accepted:	 	 /s/ Cal Hoagland
	  	                                       
 Date: 3/28/06

 Enclosures 
     Duplicate Offer Letter 
     Employment, Confidential Information, and Invention Assignment Agreement 

 Offer of Employment 
 Page 5

     Indemnification Agreement 
     Arbitration Agreement 
     Stock Option Grant Agreement 
     RSU Grant AgreementEMPLOYMENT AGREEMENT

 Exhibit 10.1 
 NEWTEK BUSINESS SERVICES, INC. 
  

 Employment Agreement with 
 Barry Sloane 
 PREAMBLE. This Agreement entered into this 30th day of June 2005, by and between Newtek Business Services, Inc. (the “Company”) and Barry Sloane (the
“Executive”), effective immediately. 
 WHEREAS, the Executive is to be employed by the Company as an executive officer; and 
 WHEREAS, the parties desire by this writing to set forth the employment relationship of the Company and the Executive. 
 NOW, THEREFORE, it is AGREED as follows: 
 1. Defined Terms 
 When used anywhere in the Agreement, the following terms shall have the meaning set forth herein.

 (a) “Board” shall mean the Board of Directors of the Company. 
 (b) “Change in Control” shall mean any one of the following events: (i) the acquisition of ownership, holding or power to
vote 50% or more of the Company’s voting stock, (ii) the acquisition of the ability to control the election of a majority of the Company’s directors, (iii) the acquisition of a controlling influence over the management or
policies of the Company by any person or by persons acting as a “group” (within the meaning of Section 13(d) of the Securities Exchange Act of 1934), or (iv) during any period of two consecutive years, individuals (the
“Continuing Directors”) who at the beginning of such period constitute the Board of Directors of the Company (the “Existing Board”) cease for any reason to constitute at least one half thereof, provided that any individual whose
election or nomination for election as a member of the Existing Board was approved by a vote of at least two-thirds of the Continuing Directors then in office shall be considered a Continuing Director. For purposes of this paragraph only, the term
“person” refers to an individual or a corporation, partnership, trust, association, joint venture, pool, syndicate, sole proprietorship, unincorporated organization or any other form of entity not specifically listed herein. 
 (c) “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, and as interpreted through applicable
rulings and regulations in effect from time to time. 
 (d) “Code §280G Maximum” shall mean the product of 2.99
and the Executive’s “base amount” as defined in Code §280G(b)(3). 
 (e) “Company” shall mean
Newtek Business Services, Inc., and any successor to its interest. 
 (f) “Common Stock” shall mean common stock of
the Company. 
 (g) “Effective Date” shall mean the date of execution referenced in the Preamble of this Agreement.

 (h) “Executive” shall mean Barry Sloane. 
 (i) “Good Reason” shall mean any of the following events, which has not been consented to in advance by the Executive in
writing: (i) the requirement that the Executive move his 

  

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personal residence, or perform his principal executive functions, more than fifty (50) miles from his primary office as of the Effective Date;
(ii) a material reduction in the Executive’s base compensation as the same may be increased from time to time; (iii) the failure by the Company to continue to provide the Executive with compensation and benefits provided for on the
Effective Date, as the same may be increased from time to time, or with benefits substantially similar to those provided to him under any of the Executive benefit plans in which the Executive now or hereafter becomes a participant, or the taking of
any action by the Company which would directly or indirectly reduce any of such benefits or deprive the Executive of any material fringe benefit enjoyed by him; (iv) the assignment to the Executive of duties and responsibilities materially
different from those associated with his position on the Effective Date; (v) a failure to elect or reelect the Executive to the Board of Directors of the Company; (vi) a material diminution or reduction in the Executive’s
responsibilities or authority (including reporting responsibilities) in connection with his employment with the Company. 
 (j) “Just Cause” shall mean the Executive’s willful misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, conviction for a felony, or material breach of any provision of
this Agreement. No act, or failure to act, on the Executive’s part shall be considered “willful” unless he has acted, or failed to act, with an absence of good faith and without a reasonable belief that his action or failure to act
was in the best interests of the Company. 
 (k) “Protected Period” shall mean the period that begins on the date
six months before a Change in Control and ends on the earlier of six months following the Change in Control or the expiration date of this Agreement. 
 (l) “Trigger Event” shall mean (i) the Executive’s voluntary termination of employment either for any reason within the 30-day period beginning on the date of a Change in Control, or within 90 days
of an event that both occurs during the Protected Period and constitutes Good Reason, or (ii) the termination by the Company or its successor(s) in interest, of the Executive’s employment for any reason other than Just Cause during the
Protected Period. 
 2. Employment. The Executive is employed as Chief Executive Officer of the Company. The Executive shall render such
administrative and management services for the Company and its subsidiaries as set forth in the attached Position Description and as requested by the Board, as are currently rendered and as are customarily performed by persons situated in a similar
executive capacity and consistent with the duties of the Chief Executive Officer as set forth in the bylaws of the Company. The Executive shall also promote, by entertainment or otherwise, as and to the extent permitted by law, the business of the
Company and its subsidiaries. The Executive’s other duties shall be such as the Board may from time to time reasonably direct, including normal duties as an officer of the Company. 
 3. Base Compensation. The Company agrees to pay the Executive during the term of this Agreement a salary at the rate of $350,000 per annum, payable in
cash not less frequently than monthly. Additionally, the Board shall review, not less often than annually, the rate of the Executive’s salary and may decide to further increase his salary. 
 4. Cash Bonuses; Incentive Compensation. 
 (a) The Board shall determine the Executive’s right to receive incentive compensation in the form of cash bonuses and other awards. No other compensation provided for in this Agreement shall be deemed a
substitute for such incentive compensation. Cash bonuses shall be awarded pursuant to the terms of the Company’s Annual Cash Bonus Plan, if one has been adopted by the Board and if not, then by action of the Board. 
  

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 (b) Incentive bonus: in addition to all other compensation payable hereunder, the
Executive shall be entitled to participate in consideration for a cash bonus out of a pool to be established for this purpose by the Board. The amount of the Executive’s bonus participation shall be fixed by the Compensation Committee of the
Board if it finds the Executive’s performance to have been a major contributing factor to the success of the Company. 
 5. Other
Benefits. 
 (a) Participation in Retirement, Medical and Other Plans. The Executive shall participate in any plan that the
Company maintains for the benefit of its employees if the plan relates to (i) pension, profit-sharing, or other retirement benefits, (ii) medical insurance or the reimbursement of medical or dependent care expenses, or (iii) other
group benefits, including disability and life insurance plans. 
 (b) Executive Benefits; Expenses. The Executive shall
participate in any fringe benefits which are or may become available to the Company’s senior management Executives, including for example incentive compensation plans, club memberships, and any other benefits which are commensurate with the
responsibilities and functions to be performed by the Executive under this Agreement. The Executive shall be reimbursed for all reasonable out-of-pocket business expenses which he shall incur in connection with his services under this Agreement upon
substantiation of such expenses in accordance with the policies of the Company. 
 (c) Split-Dollar Life Insurance. The
Company shall provide the Executive with split-dollar life insurance coverage. The coverage shall be provided under a separate Split-Dollar Life Insurance Agreement (the “Split-Dollar Agreement”) entered into between the Executive and the
Company, the terms of which shall include the following: 
 (i) Amount of Insurance. The Company shall obtain an insurance
policy (the “Policy”) in the face amount of $2 million on the life of the Executive. 
 (ii) Ownership. The Company
shall be the sole owner of the Policy. 
 (iii) Payment of Premiums. The Company shall pay all premiums for each Policy year.

 (iv) Death Benefits. Upon the death of the Executive, the death benefit payable under the Policy shall be paid to the
Company in an amount equal to the lesser of (i) the aggregate premiums paid by the Company and (ii) the cash surrender value of the Policy. The balance shall be paid to the Executive’s designated beneficiary or, if none is validly
designated, his estate. 
 (v) Dividends. All dividends on the Policy shall be used to purchase additions to insurance issued
by the insurer. 
 (vi) Termination of Employment. Upon termination of Executive’s employment for any reason, the
Executive may elect, by written notice to the Company within 30 days of such termination, to purchase the Policy and assume all premium obligations thereunder from the Company by paying the lesser of (i) the total premiums paid by the Company
or (ii) the cash surrender value of the Policy. 
 6. Term. The Company hereby employs the Executive, and the Executive hereby accepts
such employment under this Agreement, for the period commencing on the Effective Date and ending on June 30, 2005 or such earlier date as is determined in accordance with Section 11 (the “Term”). 
  

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 7. Loyalty; Noncompetition. 
 (a) During the period of his employment hereunder and except for illnesses, reasonable vacation periods, and reasonable leaves of absence,
the Executive shall devote substantially all his full business time, attention, skill, and efforts to the faithful performance of his duties hereunder; provided, however, from time to time, Executive may serve on the boards of directors of, and hold
any other offices or positions in, companies or organizations, at the request of the Company or which will not present, in the opinion of the Board, any conflict of interest with the Company or any of its subsidiaries or affiliates, nor unfavorably
affect the performance of Executive’s duties pursuant to this Agreement, nor violate any applicable statute or regulation. “Full business time” is hereby defined as that amount of time usually devoted to like companies by similarly
situated executive officers. During the Term of his employment under this Agreement, the Executive shall not engage in any business or activity contrary to the business affairs or interests of the Company. 
 (b) Nothing contained in this Paragraph 7 shall be deemed to prevent or limit the Executive’s right to invest in the capital stock or
other securities of any business dissimilar from that of the Company or, solely as a passive or minority investor, in any business. 
 8.
Standards. The Executive shall perform his duties under this Agreement in accordance with such reasonable standards as the Board may establish from time to time. The Company will provide Executive with the working facilities and staff customary for
similar executives and necessary for him to perform his duties. 
 9. Vacation and Sick Leave. At such reasonable times as the Board shall in
its discretion permit, the Executive shall be entitled, without loss of pay, to absent himself voluntarily from the performance of his employment under this Agreement, all such voluntary absences to count as vacation time; provided that: 

(a) The Executive shall be entitled to an annual vacation in accordance with the policies that the Board periodically establishes for
senior management Executives of the Company. 
 (b) The Executive shall not receive any additional compensation from the
Company on account of his failure to take a vacation, and the Executive shall not accumulate unused vacation from one fiscal year to the next, except in either case to the extent authorized by the Board. 
 (c) In addition to the aforesaid paid vacations, the Executive shall be entitled without loss of pay, to absent himself voluntarily from
the performance of his employment with the Company for such additional periods of time and for such valid and legitimate reasons as the Board may in its discretion determine. Further, the Board may grant to the Executive a leave or leaves of
absence, with or without pay, at such time or times and upon such terms and conditions as such Board in its discretion may determine. 
 (d) In addition, the Executive shall be entitled to an annual sick leave benefit as established by the Board. 
 10. Indemnification. The Company shall indemnify and hold harmless Executive from any and all loss, expense, or liability that he may incur due to his services for the Company as an officer and or a director (including any liability he may
ever incur under Code § 4999, or a successor, as the result of severance benefits he collects pursuant to Sections 11 or 13), during the full Term of this Agreement and shall at all times maintain adequate insurance for such purposes.

  

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 11. Termination and Termination Pay. Subject to Section 13 hereof, the Executive’s employment
hereunder may be terminated under the following circumstances: 
 (a) Just Cause. The Board may, based on a good faith
determination and only after giving the Executive written notice and a reasonable opportunity to cure, immediately terminate the Executive’s employment at any time, for Just Cause. The Executive shall have no right to receive compensation or
other benefits for any period after termination for Just Cause. 
 (b) Without Just Cause. The Board may, by written notice to
the Executive, immediately terminate his employment for a reason other than Just Cause, in which case the Executive shall be paid an amount equal to the balance of the compensation provided for by Sections 3 and 4 hereof for the balance of the Term.

 (c) Resignation by Executive with Good Reason. The Executive may at any time immediately terminate employment for Good
Reason, in which case the Executive shall be entitled to receive the following compensation and benefits: (i) the salary and cash bonus provided pursuant to Sections 3 and 4 hereof, up to the expiration date (the “Expiration Date”) of
the Term, including any renewal term, of this Agreement, and (ii) the cost to the Executive of obtaining all health, life, disability and other benefits which the Executive would have been eligible to participate in through the Expiration Date
based upon the benefit levels substantially equal to those that the Company provided for the Executive at the date of termination of employment. Said payment shall be made in a lump sum payment within 10 days after his termination of employment.

 (d) Resignation by Executive without Good Reason. The Executive may voluntarily terminate employment with the Company
during the term of this Agreement, upon at least 60 days’ prior written notice to the Board of Directors, in which case the Executive shall receive only his compensation, vested rights, and Executive benefits up to the date of his termination
of employment. 
 (e) Retirement, Death, or Disability. If the Executive’s employment terminates during the Term of this
Agreement due to his death, a disability that results in his collection of any long-term disability benefits, or retirement at or after age 62, the Executive (or the beneficiaries of his estate) shall be entitled to receive the compensation and
benefits that the Executive would otherwise have become entitled to receive pursuant to subsection (d) hereof upon a resignation without Good Reason. 
 (f) Termination or Non-Renewal Payment. If the Executive’s employment hereunder is terminated pursuant to subsections (b), without Just Cause, or (c), with Good Reason, or if the Term of this Agreement is not
extended for at least one additional year, the Executive shall be entitled to compensation and benefits equal to six (6) months compensation and benefits under Sections 3 and 4 hereof, provided, however, that the Company shall have the option
of paying such compensation over a twelve (12) month period. 
 12. No Mitigation. The Executive shall not be required to mitigate the
amount of any payment provided for in this Agreement by seeking other employment or otherwise, and no such payment shall be offset or reduced by the amount of any compensation or benefits provided to the Executive in any subsequent employment.

 13. Change in Control. Notwithstanding any provision herein to the contrary, if a Trigger Event occurs during the Protected Period, the
Executive shall be paid an amount equal to the Code § 280G Maximum. Said sum shall be paid in one lump sum within ten (10) days of such termination. 
  

 5 

 14. Reimbursement for Litigation Expenses. 
 In the event that any dispute arises between the Executive and the Company as to the terms or interpretation of this Agreement, whether instituted by
formal legal proceedings or otherwise, including any action that the Executive takes to enforce the terms of this Agreement or to defend against any action taken by the Company, the Executive shall be reimbursed for all costs and expenses, including
reasonable attorneys’ fees, arising from such dispute, proceedings or actions, provided that the Executive shall obtain a final judgment by a court of competent jurisdiction in favor of the Executive. Such reimbursement shall be paid within ten
(10) days of Executive’s furnishing to the Company written evidence, which may be in the form, among other things, of a cancelled check or receipt, of any costs or expenses incurred by the Executive. 
 15. Successors and Assigns. 
 (a) This Agreement shall inure to the benefit of and be binding upon any corporate or other successor of the Company which shall acquire, directly or indirectly, by merger, consolidation, purchase or otherwise, all or substantially all of
the assets or stock of the Company. 
 (b) Since the Company is contracting for the unique and personal skills of the
Executive, the Executive shall be precluded from assigning or delegating his rights or duties hereunder without first obtaining the written consent of the Company. 
 16. Corporate Authority. Company represents and warrants that the execution and delivery of this Agreement by it has been duly and properly authorized by the Board and that when so executed and delivered this
Agreement shall constitute the lawful and binding obligation of the Company. 
 17. Amendments. No amendments or additions to this Agreement
shall be binding unless made in writing and signed by all of the parties, except as herein otherwise specifically provided. 
 18. Applicable
Law. Except to the extent preempted by Federal law, the laws of the State of New York shall govern this Agreement in all respects, whether as to its validity, construction, capacity, performance or otherwise. 
 19. Severability. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the
validity or enforceability of the other provisions hereof. 
 20. Entire Agreement. This Agreement, together with any understanding or
modifications thereof as agreed to in writing by the parties, shall constitute the entire agreement between the parties hereto with respect to the matters addressed and shall supersede all previous agreements with respect to such matters.

 IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first hereinabove written. 
  

									
	Witnessed by:	 		 	NEWTEK BUSINESS SERVICES, INC.
				
	/s/ Jane Gold	 		 	By	 	/s/ Jeffrey G. Rubin
		 		 		 	Its President
	Witnessed by:	 		 	
				
	/s/ Amanda Senese	 		 		 	/s/ Barry Sloane
		 		 		 	Barry Sloane

  

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