Document:

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                                                                    EXHIBIT 10.4

                          Chorum Technologies, Inc.
                         Employee Stock Purchase Plan

                         (As Adopted October 11, 2000)

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                               TABLE OF CONTENTS
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SECTION 1.  PURPOSE OF THE PLAN............................    1

SECTION 2.  ADMINISTRATION OF THE PLAN.....................    1
     (a)  Committee Composition............................    1
     (b)  Committee Responsibilities.......................    1

SECTION 3.  STOCK OFFERED UNDER THE PLAN...................    1
     (a)  Authorized Shares................................    1
     (b)  Anti-Dilution Adjustments........................    1
     (c)  Reorganizations..................................    2

SECTION 4.  ENROLLMENT AND PARTICIPATION...................    2
     (a)  Offering Periods.................................    2
     (b)  Accumulation Periods.............................    2
     (c)  Enrollment at IPO................................    2
     (c)  Enrollment After IPO.............................    3
     (d)  Duration of Participation........................    3
     (e)  Applicable Offering Period.......................    3

SECTION 5.  EMPLOYEE CONTRIBUTIONS.........................    4
     (a)  Commencement of Payroll Deductions...............    4
     (b)  Amount of Payroll Deductions.....................    4
     (c)  Changing Withholding Rate........................    4
     (d)  Discontinuing Payroll Deductions.................    4
     (e)  Limit on Number of Elections.....................    4

SECTION 6.  WITHDRAWAL FROM THE PLAN.......................    5
     (a)  Withdrawal.......................................    5
     (b)  Re-Enrollment After Withdrawal...................    5

SECTION 7.  CHANGE IN EMPLOYMENT STATUS....................    5
     (a)  Termination of Employment........................    5
     (b)  Leave of Absence.................................    5
     (c)  Death............................................    5

SECTION 8.  PLAN ACCOUNTS AND PURCHASE OF SHARES...........    5
     (a)  Plan Accounts....................................    5
     (b)  Purchase Price...................................    6
     (c)  Number of Shares Purchased.......................    6
     (d)  Available Shares Insufficient....................    6
     (e)  Issuance of Stock................................    6
     (f)  Tax Withholding..................................    6
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     (g)  Unused Cash Balances.............................    7
     (h)  Stockholder Approval.............................    7

SECTION 9.  LIMITATIONS ON STOCK OWNERSHIP.................    7
     (a)  Five Percent Limit...............................    7
     (b)  Dollar Limit.....................................    7

SECTION 10.  RIGHTS NOT TRANSFERABLE.......................    8

SECTION 11.  NO RIGHTS AS AN EMPLOYEE......................    8

SECTION 12.  NO RIGHTS AS A STOCKHOLDER....................    8

SECTION 13.  SECURITIES LAW REQUIREMENTS...................    9

SECTION 14.  AMENDMENT OR DISCONTINUANCE...................    9
     (a)  General Rule.....................................    9
     (b)  Impact on Purchase Price.........................    9

SECTION 15.  DEFINITIONS...................................    9
     (a)  Accumulation Period..............................    9
     (b)  Board............................................   10
     (c)  Code.............................................   10
     (d)  Committee........................................   10
     (e)  Company..........................................   10
     (f)  Compensation.....................................   10
     (g)  Corporate Reorganization.........................   10
     (h)  Eligible Employee................................   10
     (i)  Exchange Act.....................................   10
     (j)  Fair Market Value................................   11
     (k)  IPO..............................................   11
     (l)  Offering Period..................................   11
     (m)  Participant......................................   11
     (n)  Participating Company............................   11
     (o)  Plan.............................................   11
     (p)  Plan Account.....................................   11
     (q)  Purchase Price...................................   11
     (r)  Stock............................................   11
     (s)  Subsidiary.......................................   11
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                           Chorum Technologies, Inc.

                         Employee Stock Purchase Plan

SECTION 1.  PURPOSE OF THE PLAN.

          The Board adopted the Plan effective as of the date of the IPO.  The
purpose of the Plan is to provide Eligible Employees with an opportunity to
increase their proprietary interest in the success of the Company by purchasing
Stock from the Company on favorable terms and to pay for such purchases through
payroll deductions.  The Plan is intended to qualify under section 423 of the
Code.

SECTION 2.  ADMINISTRATION OF THE PLAN.

          (a)  Committee Composition. The Committee shall administer the Plan.
The Committee shall consist exclusively of one or more directors of the Company,
who shall be appointed by the Board.

          (b)  Committee Responsibilities. The Committee shall interpret the
Plan and make all other policy decisions relating to the operation of the Plan.
The Committee may adopt such rules, guidelines and forms as it deems appropriate
to implement the Plan. The Committee's determinations under the Plan shall be
final and binding on all persons.

SECTION 3.  STOCK OFFERED UNDER THE PLAN.

          (a)  Authorized Shares. The number of shares of Stock available for
purchase under the Plan shall be 1,000,000 (subject to adjustment pursuant to
Subsection (b) below). On September 30 of each year, commencing with September
30, 2001 and ending September 30, 2006, the aggregate number of shares of Stock
available for purchase during the life of the Plan shall automatically be
increased by the lesser of 1% or 1,000,000 shares.

          (b)  Anti-Dilution Adjustments. The aggregate number of shares of
Stock offered under the Plan including the number of shares by which the
aggregate number of shares of Stock available for purchase is to increase
automatically each year pursuant to Section 3(a), the 2,000-share limitation
described in Section 8(c) and the price of shares that any Participant has
elected to purchase shall be adjusted proportionately by the Committee for any
increase or decrease in the number of outstanding shares of Stock resulting from
a subdivision or consolidation of shares or the payment of a stock dividend, any
other increase or decrease in such shares effected without receipt or payment of
consideration by the Company, the distribution of the shares of a Subsidiary to
the Company's stockholders or a similar event.

          (c)  Reorganizations. Any other provision of the Plan notwithstanding,
immediately prior to the effective time of a Corporate Reorganization, the
Offering Period and Accumulation Period then in progress shall terminate and
shares shall be purchased pursuant to Section 8, unless the Plan is continued or
assumed by the surviving corporation or its parent
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corporation. The Plan shall in no event be construed to restrict in any way the
Company's right to undertake a dissolution, liquidation, merger, consolidation
or other reorganization.

SECTION 4.  ENROLLMENT AND PARTICIPATION.

          (a)  Offering Periods. While the Plan is in effect, two overlapping
Offering Periods shall commence in each calendar year. The Offering Periods
shall consist of the 24-month periods commencing on each February 1 and August
1, except that:

          (i)  The first Offering Period under the Plan shall commence on the
     date of the IPO and shall end on January 31, 2003; and

          (ii) The Committee may determine that the first Offering Period
     applicable to the Eligible Employees of a new Participating Company shall
     commence on any date specified by the Committee, provided that an Offering
     Period shall never be longer than 27 months.

          (b)  Accumulation Periods. While the Plan is in effect, two
Accumulation Periods shall commence in each calendar year. The Accumulation
Periods shall consist of the six-month periods commencing on each February 1 and
August 1, except that:

          (i)  The first Accumulation Period shall commence on the date of the
     IPO and end on July 31, 2001; and

          (ii) The Committee may determine that the first Accumulation Period
     applicable to the Eligible Employees of a new Participating Company shall
     commence on any date specified by the Committee.

          (c)  Enrollment at IPO. Each individual who, on the day of the IPO,
qualifies as an Eligible Employee shall automatically become a Participant on
such day. Each Participant who was automatically enrolled on the day of the IPO
shall file the prescribed enrollment form with the Company. The enrollment form
shall be filed at the prescribed location within 20 business days after the
Company filed a registration statement on Form S-8 for the shares of Stock
offered under the Plan. If a Participant who was automatically enrolled on the
day of the IPO fails to file such form in a timely manner, then such Participant
shall be deemed to have withdrawn from the Plan under Section 6(a). A former
Participant who is deemed to have withdrawn from the Plan shall not be a
Participant until he or she re-enrolls in the Plan under Subsection (d) below.
Re-enrollment may be effective only at the commencement of an Offering Period.

          (d)  Enrollment After IPO. In the case of any individual who qualifies
as an Eligible Employee on the first day of any Offering Period other than the
first Offering Period, he or she may elect to become a Participant on such day
by filing the prescribed enrollment form with the Company. The enrollment form
shall be filed at the prescribed location not later than 5 business days prior
to such day.

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          (e)   Duration of Participation. Once enrolled in the Plan, a
Participant shall continue to participate in the Plan until he or she:

          (i)   Reaches the end of the Accumulation Period in which his or her
     employee contributions were discontinued under Section 5(d) or 9(b);

          (ii)  Is deemed to withdraw from the Plan under Subsection (c) above;

          (iii) Withdraws from the Plan under Section 6(a); or

          (iv)  Ceases to be an Eligible Employee.

A Participant whose employee contributions were discontinued automatically under
Section 9(b) shall automatically resume participation at the beginning of the
earliest Accumulation Period ending in the next calendar year, if he or she then
is an Eligible Employee.  In all other cases, a former Participant may again
become a Participant, if he or she then is an Eligible Employee, by following
the procedure described in Subsection (d) above.

          (f)   Applicable Offering Period. For purposes of calculating the
Purchase Price under Section 8(b), the applicable Offering Period shall be
determined as follows:

          (i)   Once a Participant is enrolled in the Plan for an Offering
     Period, such Offering Period shall continue to apply to him or her until
     the earliest of (A) the end of such Offering Period, (B) the end of his or
     her participation under Subsection (e) above or (C) re-enrollment for a
     subsequent Offering Period under Paragraph (ii), (iii) or (iv) below.

          (ii)  In the event that the Fair Market Value of Stock on the last
     trading day before the commencement of the Offering Period for which the
     Participant is enrolled is higher than on the last trading day before the
     commencement of any subsequent Offering Period, the Participant shall
     automatically be re-enrolled for such subsequent Offering Period.

          (iii) If Section 14(b) applies, the Participant shall automatically be
     re-enrolled for a new Offering Period.

          (iv)  Any other provision of the Plan notwithstanding, the Company (at
     its sole discretion) may determine prior to the commencement of any new
     Offering Period that all Participants shall be re-enrolled for such new
     Offering Period.

          (v)   When a Participant reaches the end of an Offering Period but his
     or her participation is to continue, then such Participant shall
     automatically be re-enrolled for the Offering Period that commences
     immediately after the end of the prior Offering Period.

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SECTION 5.  EMPLOYEE CONTRIBUTIONS.

          (a)  Commencement of Payroll Deductions. A Participant may purchase
shares of Stock under the Plan solely by means of payroll deductions. If
enrollment is automatic under Section 4(c), payroll deductions shall commence as
soon as reasonably practicable after the Company has received the prescribed
enrollment form. If an Eligible Employee enrolls for an Offering Period under
Section 4(d), payroll deductions shall commence on the first payday in such
Offering Period.

          (b)  Amount of Payroll Deductions. An Eligible Employee shall
designate on the enrollment form the portion of his or her Compensation that he
or she elects to have withheld for the purchase of Stock. Such portion shall be
a whole percentage of the Eligible Employee's Compensation, but not less than 1%
nor more than 15%.

          (c)  Changing Withholding Rate. If a Participant wishes to change the
rate of payroll withholding, he or she may do so by filing a new enrollment form
with the Company at the prescribed location at any time. The new withholding
rate shall be effective as soon as reasonably practicable after the Company has
received such form. The new withholding rate shall be a whole percentage of the
Eligible Employee's Compensation, but not less than 1% nor more than 15%.

          (d)  Discontinuing Payroll Deductions. If a Participant wishes to
discontinue employee contributions entirely, he or she may do so by filing a new
enrollment form with the Company at the prescribed location at any time. Payroll
withholding shall cease as soon as reasonably practicable after the Company has
received such form. (In addition, employee contributions may be discontinued
automatically pursuant to Section 9(b).) A Participant who has discontinued
employee contributions may resume such contributions by filing a new enrollment
form with the Company at the prescribed location. Payroll withholding shall
resume as soon as reasonably practicable after the Company has received such
form.

          (e)  Limit on Number of Elections. No Participant shall make more than
2 elections under Subsection (c) or (d) above during any Accumulation Period.

SECTION 6.  WITHDRAWAL FROM THE PLAN.

          (a)  Withdrawal.  A Participant may elect to withdraw from the Plan by
filing the prescribed form with the Company at the prescribed location at any
time before the last day of an Accumulation Period. As soon as reasonably
practicable thereafter, payroll deductions shall cease and the entire amount
credited to the Participant's Plan Account shall be refunded to him or her in
cash, without interest. No partial withdrawals shall be permitted.

          (b)  Re-Enrollment After Withdrawal. A former Participant who has
withdrawn from the Plan shall not be a Participant until he or she re-enrolls in
the Plan under Section 4(d). Re-enrollment may be effective only at the
commencement of an Offering Period.

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SECTION 7.  CHANGE IN EMPLOYMENT STATUS.

          (a)  Termination of Employment. Termination of employment as an
Eligible Employee for any reason, including death, shall be treated as an
automatic withdrawal from the Plan under Section 6(a). (A transfer from one
Participating Company to another shall not be treated as a termination of
employment.)

          (b)  Leave of Absence. For purposes of the Plan, employment shall not
be deemed to terminate when the Participant goes on a military leave, a sick
leave or another bona fide leave of absence, if the leave was approved by the
Company in writing. Employment, however, shall be deemed to terminate 90 days
after the Participant goes on a leave, unless a contract or statute guarantees
his or her right to return to work. Employment shall be deemed to terminate in
any event when the approved leave ends, unless the Participant immediately
returns to work.

          (c)  Death. In the event of the Participant's death, the amount
credited to his or her Plan Account shall be paid to a beneficiary designated by
him or her for this purpose on the prescribed form or, if none, to the
Participant's estate. Such form shall be valid only if it was filed with the
Company at the prescribed location before the Participant's death.

SECTION 8.  PLAN ACCOUNTS AND PURCHASE OF SHARES.

          (a)  Plan Accounts. The Company shall maintain a Plan Account on its
books in the name of each Participant. Whenever an amount is deducted from the
Participant's Compensation under the Plan, such amount shall be credited to the
Participant's Plan Account. Amounts credited to Plan Accounts shall not be trust
funds and may be commingled with the Company's general assets and applied to
general corporate purposes. No interest shall be credited to Plan Accounts.

          (b)  Purchase Price. The Purchase Price for each share of Stock
purchased at the close of an Accumulation Period shall be the lower of:

          (i)  85% of the Fair Market Value of such share on the last trading
     day before the commencement of the applicable Offering Period (as
     determined under Section 4(f)) or, in the case of the first Offering Period
     under the Plan, 85% of the price at which one share of Stock is offered to
     the public in the IPO; or

          (ii) 85% of the Fair Market Value of such share on the last trading
     day in such Accumulation Period.

          (c)  Number of Shares Purchased. As of the last day of each
Accumulation Period, each Participant shall be deemed to have elected to
purchase the number of shares of Stock calculated in accordance with this
Subsection (c), unless the Participant has previously elected to withdraw from
the Plan in accordance with Section 6(a). The amount then in the Participant's
Plan Account shall be divided by the Purchase Price, and the number of shares
that results shall be purchased from the Company with the funds in the
Participant's Plan Account. The foregoing notwithstanding, no Participant shall
purchase more than 2,000 shares of Stock

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with respect to any Accumulation Period nor more than the amounts of Stock set
forth in Sections 3(a) and 9(b). The Committee may determine with respect to all
Participants that any fractional share, as calculated under this Subsection (c),
shall be (i) rounded down to the next lower whole share or (ii) credited as a
fractional share.

          (d)  Available Shares Insufficient. In the event that the aggregate
number of shares that all Participants elect to purchase during an Accumulation
Period exceeds the maximum number of shares remaining available for issuance
under Section 3, then the number of shares to which each Participant is entitled
shall be determined by multiplying the number of shares available for issuance
by a fraction. The numerator of such fraction is the number of shares that such
Participant has elected to purchase, and the denominator of such fraction is the
number of shares that all Participants have elected to purchase.

          (e)  Issuance of Stock. Certificates representing the shares of Stock
purchased by a Participant under the Plan shall be issued to him or her as soon
as reasonably practicable after the close of the applicable Accumulation Period,
except that the Committee may determine that such shares shall be held for each
Participant's benefit by a broker designated by the Committee (unless the
Participant has elected that certificates be issued to him or her). Shares may
be registered in the name of the Participant or jointly in the name of the
Participant and his or her spouse as joint tenants with right of survivorship or
as community property.

          (f)  Tax Withholding. To the extent required by applicable federal,
state, local or foreign law, a Participant shall make arrangements satisfactory
to the Company for the satisfaction of any withholding tax obligations that
arise in connection with the Plan. The Company shall not be required to issue
any shares of Stock under the Plan until such obligations are satisfied.

          (g)  Unused Cash Balances. An amount remaining in the Participant's
Plan Account that represents the Purchase Price for any fractional share shall
be carried over in the Participant's Plan Account to the next Accumulation
Period. Any amount remaining in the Participant's Plan Account that represents
the Purchase Price for whole shares that could not be purchased by reason of
Subsection (c) above, Section 3 or Section 9(b) shall be refunded to the
Participant in cash, without interest.

          (h)  Stockholder Approval. Any other provision of the Plan
notwithstanding, no shares of Stock shall be purchased under the Plan unless and
until the Company's stockholders have approved the adoption of the Plan.

SECTION 9.  LIMITATIONS ON STOCK OWNERSHIP.

          (a)  Five Percent Limit. Any other provision of the Plan
notwithstanding, no Participant shall be granted a right to purchase Stock under
the Plan if such Participant, immediately after his or her election to purchase
such Stock, would own stock possessing more than 5% of the total combined voting
power or value of all classes of stock of the Company or any parent or
Subsidiary of the Company. For purposes of this Subsection (a), the following
rules shall apply:

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          (i)   Ownership of stock shall be determined after applying the
     attribution rules of section 424(d) of the Code;

          (ii)  Each Participant shall be deemed to own any stock that he or she
     has a right or option to purchase under this or any other plan; and

          (iii) Each Participant shall be deemed to have the right to purchase
2,000 shares of Stock under this Plan with respect to each Accumulation Period.

          (b)   Dollar Limit.  Any other provision of the Plan notwithstanding,
no Participant shall purchase Stock with a Fair Market Value in excess of the
following limit:

          (i)   In the case of Stock purchased during an Offering Period that
     commenced in the current calendar year, the limit shall be equal to (A)
     $25,000 minus (B) the Fair Market Value of the Stock that the Participant
     previously purchased in the current calendar year (under this Plan and all
     other employee stock purchase plans of the Company or any parent or
     Subsidiary of the Company).

          (ii)  In the case of Stock purchased during an Offering Period that
     commenced in the immediately preceding calendar year, the limit shall be
     equal to (A) $50,000 minus (B) the Fair Market Value of the Stock that the
     Participant previously purchased (under this Plan and all other employee
     stock purchase plans of the Company or any parent or Subsidiary of the
     Company) in the current calendar year and in the immediately preceding
     calendar year.

          (iii) In the case of Stock purchased during an Offering Period that
     commenced in the second preceding calendar year, the limit shall be equal
     to (A) $75,000 minus (B) the Fair Market Value of the Stock that the
     Participant previously purchased (under this Plan and all other employee
     stock purchase plans of the Company or any parent or Subsidiary of the
     Company) in the current calendar year and in the two preceding calendar
     years.

For purposes of this Subsection (b), the Fair Market Value of Stock shall be
determined in each case as of the beginning of the Offering Period in which such
Stock is purchased.  Employee stock purchase plans not described in section 423
of the Code shall be disregarded.  If a Participant is precluded by this
Subsection (b) from purchasing additional Stock under the Plan, then his or her
employee contributions shall automatically be discontinued and shall
automatically resume at the beginning of the earliest Accumulation Period ending
in the next calendar year (if he or she then is an Eligible Employee).

SECTION 10.  RIGHTS NOT TRANSFERABLE.

          The rights of any Participant under the Plan, or any Participant's
interest in any Stock or moneys to which he or she may be entitled under the
Plan, shall not be transferable by voluntary or involuntary assignment or by
operation of law, or in any other manner other than by beneficiary designation
or the laws of descent and distribution.  If a Participant in any manner

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attempts to transfer, assign or otherwise encumber his or her rights or interest
under the Plan, other than by beneficiary designation or the laws of descent and
distribution, then such act shall be treated as an election by the Participant
to withdraw from the Plan under Section 6(a).

SECTION 11.  NO RIGHTS AS AN EMPLOYEE.

          Nothing in the Plan or in any right granted under the Plan shall
confer upon the Participant any right to continue in the employ of a
Participating Company for any period of specific duration or interfere with or
otherwise restrict in any way the rights of the Participating Companies or of
the Participant, which rights are hereby expressly reserved by each, to
terminate his or her employment at any time and for any reason, with or without
cause.

SECTION 12.  NO RIGHTS AS A STOCKHOLDER.

          A Participant shall have no rights as a stockholder with respect to
any shares of Stock that he or she may have a right to purchase under the Plan
until such shares have been purchased on the last day of the applicable
Accumulation Period.

SECTION 13.  Securities Law Requirements.

          Shares of Stock shall not be issued under the Plan unless the issuance
and delivery of such shares comply with (or are exempt from) all applicable
requirements of law, including (without limitation) the Securities Act of 1933,
as amended, the rules and regulations promulgated thereunder, state securities
laws and regulations, and the regulations of any stock exchange or other
securities market on which the Company's securities may then be traded.

SECTION 14.  AMENDMENT OR DISCONTINUANCE.

          (a)  General Rule.  The Board shall have the right to amend, suspend
or terminate the Plan at any time and without notice. Except as provided in
Section 3, any increase in the aggregate number of shares of Stock that may be
issued under the Plan shall be subject to the approval of the Company's
stockholders. In addition, any other amendment of the Plan shall be subject to
the approval of the Company's stockholders to the extent required by any
applicable law or regulation. The Plan shall terminate automatically 20 years
after its adoption by the Board, unless (a) the Plan is extended by the Board
and (b) the extension is approved within 12 months by a vote of the stockholders
of the Company.

          (b)  Impact on Purchase Price. This Subsection (b) shall apply in the
event that (i) the Company's stockholders during an Accumulation Period approve
an increase in the number of shares of Stock that may be issued under Section 3
and (ii) the aggregate number of shares to be purchased at the close of such
Accumulation Period exceeds the number of shares that remained available under
Section 3 before such increase. In such event, the Purchase Price for each share
of Stock purchased at the close of such Accumulation Period shall be the lower
of:

          (i)  The higher of (A) 85% of the Fair Market Value of such share on
     the last trading day before the commencement of the applicable Offering
     Period

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     or, in the case of the first Offering Period under the Plan, 85% of the
     price at which one share of Stock is offered to the public in the IPO or
     (B) 85% of the Fair Market Value of such share on the last trading day
     before the date when the Company's stockholders approve such increase; or

          (ii) 85% of the Fair Market Value of such share on the last trading
     day in such Accumulation Period.

Immediately after the close of such Accumulation Period, a new Offering Period
shall commence for all Participants.

SECTION 15.  DEFINITIONS.

          (a)  "Accumulation Period" means a period during which contributions
may be made toward the purchase of Stock under the Plan, as determined pursuant
to Section 4(b).

          (b)  "Board" means the Board of Directors of the Company, as
constituted from time to time.

          (c)  "Code" means the Internal Revenue Code of 1986, as amended.

          (d)  "Committee" means a committee of the Board, as described in
Section 2.

          (e)  "Company" means Chorum Technologies, Inc., a Delaware
corporation.

          (f)  "Compensation" means (i) the total compensation paid in cash to a
Participant by a Participating Company, including salaries, wages, bonuses,
incentive compensation, commissions, overtime pay and shift premiums, plus (ii)
any pre-tax contributions made by the Participant under section 401(k) or 125 of
the Code. "Compensation" shall exclude all non-cash items, moving or relocation
allowances, cost-of-living equalization payments, car allowances, tuition
reimbursements, imputed income attributable to cars or life insurance, severance
pay, fringe benefits, contributions or benefits received under employee benefit
plans, income attributable to the exercise of stock options, and similar items.
The Committee shall determine whether a particular item is included in
Compensation.

          (g)  "Corporate Reorganization" means:

          (i)  The consummation of a merger or consolidation of the Company with
     or into another entity or any other corporate reorganization; or

          (ii) The sale, transfer or other disposition of all or substantially
     all of the Company's assets or the complete liquidation or dissolution of
     the Company.

          (h)  "Eligible Employee" means any employee of a Participating Company
who meets both of the following requirements:

          (i)  His or her customary employment is for more than five months per
     calendar year and for more than 20 hours per week; and

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          (ii)  He or she has been an employee of a Participating Company for
     not less than [0] consecutive months.

The foregoing notwithstanding, an individual shall not be considered an Eligible
Employee if his or her participation in the Plan is prohibited by the law of any
country which has jurisdiction over him or her or if he or she is subject to a
collective bargaining agreement that does not provide for participation in the
Plan.

          (i)   "Exchange Act" means the Securities Exchange Act of 1934, as
     amended.

          (j)   "Fair Market Value" means the market price of Stock, determined
by the Committee as follows:

          (i)   If the Stock was traded on The Nasdaq National Market or The
     Nasdaq SmallCap Market on the date in question, then the Fair Market Value
     shall be equal to the last-transaction price quoted for such date by such
     Market;

          (ii)  If the Stock was traded on a stock exchange on the date in
     question, then the Fair Market Value shall be equal to the closing price
     reported by the applicable composite transactions report for such date; or

          (iii) If none of the foregoing provisions is applicable, then the
Committee shall determine the Fair Market Value in good faith on such basis as
it deems appropriate.

Whenever possible, the determination of Fair Market Value by the Committee shall
be based on the prices reported in The Wall Street Journal or as reported
                                   -----------------------
directly to the Company by Nasdaq or a stock exchange.  Such determination shall
be conclusive and binding on all persons.

          (k)   "IPO" means the effective date of the registration statement
     filed by the Company with the Securities and Exchange Commission for its
     initial offering of Stock to the public.

          (l)   "Offering Period" means a period with respect to which the right
     to purchase Stock may be granted under the Plan, as determined pursuant to
     Section 4(a).

          (m)   "Participant" means an Eligible Employee who participates in the
     Plan, as provided in Section 4.

          (n)   "Participating Company" means (i) the Company and (ii) each
     present or future Subsidiary designated by the Committee as a Participating
     Company.

          (o)   "Plan" means this Chorum Technologies, Inc. Employee Stock
     Purchase Plan, as it may be amended from time to time.

          (p)   "Plan Account" means the account established for each
     Participant pursuant to Section 8(a).

                                      10
<PAGE>

          (q)  "Purchase Price" means the price at which Participants may
     purchase Stock under the Plan, as determined pursuant to Section 8(b).

          (r)  "Stock" means the Common Stock of the Company.

          (s)  "Subsidiary" means any corporation (other than the Company) in an
unbroken chain of corporations beginning with the Company, if each of the
corporations other than the last corporation in the unbroken chain owns stock
possessing 50% or more of the total combined voting power of all classes of
stock in one of the other corporations in such chain.

                                      11<PAGE>

                                                                  EXHIBIT 10.5

                           CHORUM TECHNOLOGIES INC.

                           2000 DIRECTOR OPTION PLAN

                         (AS ADOPTED OCTOBER 11, 2000)
<PAGE>

                               TABLE OF CONTENTS

                                                               Page

ARTICLE 1.  INTRODUCTION.......................................  1

ARTICLE 2.  ADMINISTRATION.....................................  1
     2.1  Committee Composition................................  1
     2.2  Committee Responsibilities...........................  1

ARTICLE 3.  SHARES AVAILABLE FOR GRANTS........................  1
     3.1  Basic Limitation.....................................  1
     3.2  Additional Shares....................................  2

ARTICLE 4.  AUTOMATIC OPTION GRANTS TO NON-EMPLOYEE DIRECTORS..  2
     4.1  Eligibility..........................................  2
     4.2  Initial Grants.......................................  2
     4.3  Annual Grants........................................  2
     4.4  Accelerated Exercisability...........................  2
     4.5  Exercise Price.......................................  2
     4.6  Term.................................................  2
     4.7  Affiliates of Non-Employee Directors.................  2
     4.8  Stock Option Agreement...............................  3

ARTICLE 5.  PAYMENT FOR OPTION SHARES..........................  3
     5.1  Cash.................................................  3
     5.2  Surrender of Stock...................................  3
     5.3  Exercise/Sale........................................  3
     5.4  Other Forms of Payment...............................  3

ARTICLE 6.  PROTECTION AGAINST DILUTION........................  3
     6.1  Adjustments..........................................  3
     6.2  Dissolution or Liquidation...........................  3
     6.3  Reorganizations......................................  4

ARTICLE 7.  LIMITATION ON RIGHTS...............................  4
     7.1  Stockholders' Rights.................................  4
     7.2  Regulatory Requirements..............................  4
     7.3  Withholding Taxes....................................  4

ARTICLE 8.  FUTURE OF THE PLAN.................................  4
     8.1  Term of the Plan.....................................  4
     8.2  Amendment or Termination.............................  4

ARTICLE 9.  DEFINITIONS........................................  4

                                       i
<PAGE>

                           CHORUM TECHNOLOGIES INC.

                           2000 DIRECTOR OPTION PLAN

     ARTICLE 1.  INTRODUCTION.

          The Plan was adopted by the Board on October 11, 2000 to be effective
at the effectiveness of the IPO.  The purpose of the Plan is to promote the
long-term success of the Company and the creation of stockholder value by (a)
encouraging Non-Employee Directors to focus on critical long-range objectives,
(b) encouraging the attraction and retention of Non-Employee Directors with
exceptional qualifications and (c) linking Non-Employee Directors directly to
stockholder interests through increased stock ownership.  The Plan seeks to
achieve this purpose by providing for automatic and non-discretionary grants of
Options to Non-Employee Directors.

          The Plan shall be governed by, and construed in accordance with, the
laws of the State of Delaware (except their choice-of-law provisions).

     ARTICLE 2.  ADMINISTRATION.

     2.1  Committee Composition.  The Committee shall administer the Plan.  The
Committee shall consist exclusively of two or more directors of the Company, who
shall be appointed by the Board.  In addition, the composition of the Committee
shall satisfy such requirements as the Securities and Exchange Commission may
establish for administrators acting under plans intended to qualify for
exemption under Rule 16b-3 (or its successor) under the Exchange Act.

     2.2  Committee Responsibilities. The Committee shall interpret the Plan and
make all decisions relating to the operation of the Plan. The Committee may
adopt such rules or guidelines as it deems appropriate to implement the Plan.
The Committee's determinations under the Plan shall be final and binding on all
persons.

     ARTICLE 3.  SHARES AVAILABLE FOR GRANTS.

     3.1  Basic Limitation.  Common Shares issued pursuant to the Plan may be
authorized but unissued shares or treasury shares.  The aggregate number of
Common Shares subject to Options granted under the Plan shall not exceed (a)
300,000 plus (b) the additional Common Shares described in Section 3.2.  The
limitations of this Section 3.1 shall be subject to adjustment pursuant to
Article 6.

     3.2  Additional Shares. If Options are forfeited or terminate for any other
reason before being exercised, then the Common Shares subject to such Options
shall again become available for the grant of Options under the Plan. On
September 30 of each year, commencing with September 30, 2001 and continuing
through September 30, 2006, the aggregate number of shares of Stock available
for purchase during the life of the Plan shall automatically be increased
<PAGE>

by 50,000 shares or such lesser number of shares as the Board may determine
(subject to adjustment pursuant to Article 6).

     ARTICLE 4.  AUTOMATIC OPTION GRANTS TO NON-EMPLOYEE DIRECTORS.

     4.1  Eligibility. Only Non-Employee Directors shall be eligible for the
grant of Options under the Plan.

     4.2  Initial Grants. Each Non-Employee Director who is serving as a member
of the Board on the effectiveness of the IPO shall receive on that date a one-
time grant of an Option covering 40,000 Common Shares (subject to adjustment
under Article 6). Each Non-Employee Director who first becomes a member of the
Board after the date of the IPO shall receive a one-time grant of an Option
covering 40,000 Common Shares (subject to adjustment under Article 6); such
Option shall be granted on the date when such Non-Employee Director first joins
the Board. Each initial option shall become exercisable for the shares in equal
monthly installments over the four-year period measured from the grant date. A
Non-Employee Director who previously was an Employee shall not receive a grant
under this Section 4.2.

     4.3  Annual Grants. Upon the conclusion of each regular annual meeting of
the Company's stockholders held in the year 2001 or thereafter, each Non-
Employee Director who will continue serving as a member of the Board thereafter
shall receive an Option covering 10,000 Common Shares (subject to adjustment
under Article 6), except that such Option shall not be granted in the calendar
year in which the same Non-Employee Director received the Option described in
Section 4.2. Options granted under this Section 4.3 shall become exercisable for
the shares in equal monthly installments over the four-year period measured from
the grant date. A Non-Employee Director who previously was an Employee shall be
eligible to receive grants under this Section 4.3.

     4.4  Accelerated Exercisability. All Options granted to a Non-Employee
Director under this Article 4 shall also become exercisable in full in the event
of a Change in Control with respect to the Company.

     4.5  Exercise Price. The Exercise Price under all Options granted to a Non-
Employee Director under this Article 4 shall be equal to 100% of the Fair Market
Value of a Common Share on the date of grant, payable in one of the forms
described in Article 5.

     4.6  Term. All Options granted to a Non-Employee Director under this
Article 4 shall terminate on the earliest of (a) the 10th anniversary of the
date of grant, or (b) the date 12 months after the termination of such Non-
Employee Director's service for any reason.

     4.7  Affiliates of Non-Employee Directors. The Committee may provide that
the Options that otherwise would be granted to a Non-Employee Director under
this Article 4 shall instead be granted to an affiliate of such Non-Employee
Director. Such affiliate shall then be deemed to be a Non-Employee Director for
purposes of the Plan, provided that the service-related vesting and termination
provisions pertaining to the Options shall be applied with regard to the service
of the Non-Employee Director.

                                       2
<PAGE>

     4.8  Stock Option Agreement. Each grant of an Option under the Plan shall
be evidenced by a Stock Option Agreement between the Optionee and the Company.
Such Option shall be subject to all applicable terms of the Plan and may be
subject to any other terms that are not inconsistent with the Plan.

     ARTICLE 5.  PAYMENT FOR OPTION SHARES.

     5.1  Cash. All or any part of the Exercise Price may be paid in cash or
cash equivalents.

     5.2  Surrender of Stock. All or any part of the Exercise Price may be paid
by surrendering, or attesting to the ownership of, Common Shares that are
already owned by the Optionee. Such Common Shares shall be valued at their Fair
Market Value on the date when the new Common Shares are purchased under the
Plan. The Optionee shall not surrender, or attest to the ownership of, Common
Shares in payment of the Exercise Price if such action would cause the Company
to recognize compensation expense (or additional compensation expense) with
respect to the Option for financial reporting purposes.

     5.3  Exercise/Sale. All or any part of the Exercise Price and any
withholding taxes may be paid by delivering (on a form prescribed by the
Company) an irrevocable direction to a securities broker approved by the Company
to sell all or part of the Common Shares being purchased under the Plan and to
deliver all or part of the sales proceeds to the Company.

     5.4  Other Forms of Payment. At the sole discretion of the Committee, all
or any part of the Exercise Price and any withholding taxes may be paid in any
other form that is consistent with applicable laws, regulations and rules.

     ARTICLE 6.  PROTECTION AGAINST DILUTION.

     6.1  Adjustments.  In the event of a subdivision of the outstanding Common
Shares, a declaration of a dividend payable in Common Shares, a declaration of a
dividend payable in a form other than Common Shares in an amount that has a
material effect on the price of Common Shares, a combination or consolidation of
the outstanding Common Shares (by reclassification or otherwise) into a lesser
number of Common Shares, a recapitalization, a spin-off or a similar occurrence,
the Committee shall make such adjustments as it, in its sole discretion, deems
appropriate in one or more of (a) the number of Common Shares available for
future grants under Article 3, including the number and/or class of securities
by which the share reserve is to increase automatically each year, (b) the
number of Options to be granted to Non-Employee Directors under Article 4, (c)
the number of Common Shares covered by each outstanding Option or (d) the
Exercise Price under each outstanding Option.  Except as provided in this
Article 6, an Optionee shall have no rights by reason of any issue by the
Company of stock of any class or securities convertible into stock of any class,
any subdivision or consolidation of shares of stock of any class, the payment of
any stock dividend or any other increase or decrease in the number of shares of
stock of any class.

     6.2  Dissolution or Liquidation.  To the extent not previously exercised,
Options shall terminate immediately prior to the dissolution or liquidation of
the Company.

                                       3
<PAGE>

     6.3  Reorganizations. In the event that the Company is a party to a merger
or other reorganization, outstanding Options shall be subject to the agreement
of merger or reorganization. Such agreement shall provide for (a) the
continuation of the outstanding Options by the Company, if the Company is a
surviving corporation, (b) the assumption of the outstanding Options by the
surviving corporation or its parent or subsidiary, (c) the substitution by the
surviving corporation or its parent or subsidiary of its own options for the
outstanding Options, or (d) settlement of the full value of the outstanding
Options in cash or cash equivalents followed by cancellation of such Options.

     ARTICLE 7.  LIMITATION ON RIGHTS.

     7.1  Stockholders' Rights'. An Optionee shall have no dividend rights,
voting rights or other rights as a stockholder with respect to any Common Shares
covered by his or her Option prior to the time he or she becomes entitled to
receive such Common Shares by filing a notice of exercise and paying the
Exercise Price. No adjustment shall be made for cash dividends or other rights
for which the record date is prior to such time, except as expressly provided in
the Plan.

     7.2  Regulatory Requirements. Any other provision of the Plan
notwithstanding, the obligation of the Company to issue Common Shares under the
Plan shall be subject to all applicable laws, rules and regulations and such
approval by any regulatory body as may be required. The Company reserves the
right to restrict, in whole or in part, the delivery of Common Shares pursuant
to any Option prior to the satisfaction of all legal requirements relating to
the issuance of such Common Shares, to their registration, qualification or
listing or to an exemption from registration, qualification or listing.

     7.3  Withholding Taxes. To the extent required by applicable federal,
state, local or foreign law, an Optionee or his or her successor shall make
arrangements satisfactory to the Company for the satisfaction of any withholding
tax obligations that arise in connection with the Plan. The Company shall not be
required to issue any Common Shares or make any cash payment under the Plan
until such obligations are satisfied.

     ARTICLE 8.  FUTURE OF THE PLAN.

     8.1  Term of the Plan. The Plan, as set forth herein, shall become
effective on effectiveness of the IPO. The Plan shall remain in effect until it
is terminated under Section 8.2.

     8.2  Amendment or Termination. The Board may, at any time and for any
reason, amend or terminate the Plan. An amendment of the Plan shall be subject
to the approval of the Company's stockholders only to the extent required by
applicable laws, regulations or rules. No Options shall be granted under the
Plan after the termination thereof. The termination of the Plan, or any
amendment thereof, shall not affect any Option previously granted under the
Plan.

     ARTICLE 9.  DEFINITIONS.

     9.1  "Board" means the Company's Board of Directors, as constituted from
time to time.

                                       4
<PAGE>

     9.2  "Change in Control" means:

          (a)  The consummation of a merger or consolidation of the Company with
or into another entity or any other corporate reorganization, if persons who
were not stockholders of the Company immediately prior to such merger,
consolidation or other reorganization own immediately after such merger,
consolidation or other reorganization 50% or more of the voting power of the
outstanding securities of each of (i) the continuing or surviving entity and
(ii) any direct or indirect parent corporation of such continuing or surviving
entity;

          (b)  The sale, transfer or other disposition of all or substantially
all of the Company's assets;

          (c)  A change in the composition of the Board, as a result of which
fewer than 50% of the incumbent directors are directors who either (i) had been
directors of the Company on the date 24 months prior to the date of the event
that may constitute a Change in Control (the "original directors") or (ii) were
elected, or nominated for election, to the Board with the affirmative votes of
at least a majority of the aggregate of the original directors who were still in
office at the time of the election or nomination and the directors whose
election or nomination was previously so approved; or

          (d)  Any transaction as a result of which any person is the
"beneficial owner" (as defined in Rule 13d-3 under the Exchange Act), directly
or indirectly, of securities of the Company representing at least 50% of the
total voting power represented by the Company's then outstanding voting
securities. For purposes of this Subsection (d), the term "person" shall have
the same meaning as when used in sections 13(d) and 14(d) of the Exchange Act
but shall exclude (i) a trustee or other fiduciary holding securities under an
employee benefit plan of the Company or of a Parent or Subsidiary and (ii) a
corporation owned directly or indirectly by the stockholders of the Company in
substantially the same proportions as their ownership of the common stock of the
Company.

     A transaction shall not constitute a Change in Control if its sole purpose
is to change the state of the Company's incorporation or to create a holding
company that will be owned in substantially the same proportions by the persons
who held the Company's securities immediately before such transaction.

     9.3  "Code" means the Internal Revenue Code of 1986, as amended.

     9.4  "Committee" means a committee of the Board, as described in Article 2.

     9.5  "Common Share" means one share of the common stock of the Company.

     9.6  "Company" means Chorum Technologies Inc., a Delaware corporation.

     9.7  "Employee" means a common-law employee of the Company, a Parent or a
Subsidiary.

     9.8  "Exchange Act" means the Securities Exchange Act of 1934, as amended.

                                       5
<PAGE>

     9.9   "Exercise Price" means the amount for which one Common Share may be
purchased upon exercise of such Option, as specified in the applicable Stock
Option Agreement.

     9.10  "Fair Market Value" means the market price of Common Shares,
determined by the Committee in good faith on such basis as it deems appropriate.
Whenever possible, the determination of Fair Market Value by the Committee shall
be based on the prices reported in The Wall Street Journal. Such determination
                                   -----------------------
shall be conclusive and binding on all persons.

     9.11  "IPO" means the initial offering of common stock of the Company to
the public pursuant to a registration statement filed by the Company with the
Securities and Exchange Commission.

     9.12  "Non-Employee Director" means a member of the Board who is not an
Employee.

     9.13  "Option" means an option granted under the Plan and entitling the
holder to purchase Common Shares. Options do not qualify as incentive stock
options described in section 422(b) of the Code.

     9.14  "Optionee" means an individual or estate who holds an Option.

     9.15  "Parent" means any corporation (other than the Company) in an
unbroken chain of corporations ending with the Company, if each of the
corporations other than the Company owns stock possessing 50% or more of the
total combined voting power of all classes of stock in one of the other
corporations in such chain. A corporation that attains the status of a Parent on
a date after the adoption of the Plan shall be considered a Parent commencing as
of such date.

     9.16  "Plan" means this Chorum Technologies Inc. 2000 Director Option Plan,
as amended from time to time.

     9.17  "Stock Option Agreement" means the agreement between the Company and
an Optionee that contains the terms, conditions and restrictions pertaining to
his or her Option.

     9.18  "Subsidiary" means any corporation (other than the Company) in an
unbroken chain of corporations beginning with the Company, if each of the
corporations other than the last corporation in the unbroken chain owns stock
possessing 50% or more of the total combined voting power of all classes of
stock in one of the other corporations in such chain. A corporation that attains
the status of a Subsidiary on a date after the adoption of the Plan shall be
considered a Subsidiary commencing as of such date.

                                      6

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