Document:

Form of Option Award Agreement

EXHIBIT 10.31 
 
TELLIUM, INC. 
 
FORM OF 
 
OPTION AWARD AGREEMENT 
 
THIS OPTION AWARD AGREEMENT (the “Agreement”) is made as of March     , 2003, by and between
Tellium, Inc., a Delaware corporation (the “Company”), and              (the “Employee”). 
 
WHEREAS, the Company believes it to be in the best interests
of the Company and its shareholders to take action to promote work-force stability, to reward performance and otherwise align employee interests with those of the Company; and 
 
WHEREAS, accordingly the Company has determined to (1) cancel all stock options heretofore granted to the
Employee by the Company and (2) issue Stock Options to the Employee pursuant to the Plan, each of (1) – (2) in accordance with and in amounts specified on the Option Award Schedule attached hereto as Annex A. 
 
NOW, THEREFORE, in consideration of the above premises and
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged the parties hereto, intending to be legally bound, agree as follows: 
 
1.    CANCELLATION AND ISSUANCE OF STOCK OPTIONS. 
 
(a) Cancellation of Stock Options. Effective upon the
execution of this Agreement, the Company hereby cancels the stock options presently held by the Employee in the amounts set forth on the Option Award Schedule. The Employee hereby agrees that the stock options are cancelled and are null and void.

 
(b) Stock Option Grant. Concurrently with
the execution of this Agreement, the Company will grant the Employee options to purchase the number of shares of the Company’s Common Stock set forth on the Option Award Schedule, at an exercise price of $0.63 per share (the average of the
daily closing prices of the Company’s Common Stock during December, 2002) (the “Employee Stock Option Grant”) pursuant to the Plan, as the same may be amended from time to time but subject to the terms hereof. The Employee
Stock Option Grant shall vest in whole or in part (but not for a fraction of a share) upon the following schedule: (i) 50% of the options to purchase shares of Common Stock shall vest immediately upon issuance; and (ii) the balance shall vest in
four equal quarterly installments on March 31, June 30, September 30 and December 31, 2003; provided, however, that such unvested options shall not vest if the Employee voluntarily resigns for other than Good Reason or is terminated
for Cause (as determined by the Compensation Committee in its sole discretion). The other terms of the Employee Stock Option Grant are more particularly set forth in the Employee’s Stock Option Agreement attached as Annex B and the
Plan. 
 

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2.    EXECUTION OF NON-COMPETITION AGREEMENT. 
 
(a) Non-Competition Agreement. Concurrently with the
execution of this Agreement, the Employee shall execute a non-competition agreement (the “Non-Compete Agreement”) substantially in the form attached hereto as Annex C. 
 
3.    DEFINITIONS. Unless otherwise defined in this
Agreement, the capitalized terms used in this Agreement shall have the following meanings: 
 
(a) “Cause” shall mean (i) the commission of an act of fraud or intentional misrepresentation or an act of embezzlement, misappropriation or conversion of assets or opportunities of
the Company or any of its subsidiaries, (ii) willfully failing to perform reasonably assigned duties within thirty (30) days after having received written notice from the Company to do so, (iii) dishonesty or willful misconduct in the performance of
duties, (iv) involvement in a transaction in connection with the performance of duties to the Company or any of its subsidiaries which transaction is adverse to the interests of the Company or any of its subsidiaries and which is engaged in for
personal profit or (v) willful violation of any law, rule or regulation (other than traffic violations or similar offenses) in connection with the performance of duties, or (vi) the commission of a felony. 
 
(b) “Common Stock” shall mean the
Company’s common stock, par value $0.001 per share. 
 
(c) “Compensation Committee” shall mean the Compensation Committee of the Board of Directors of the Company. 
 
(d) “Good Reason” shall mean (i) the nature of the Employee’s title, position, duties, powers and authority,
reporting relationship or the scope of his responsibilities, are adversely modified, without the Employee’s consent; (ii) a reduction in the Employee’s annual base salary, (iii) the Company’s requiring the Employee, without his
consent, to be permanently relocated outside a 50 mile radius from Oceanport, New Jersey, (iv) the failure by the Company to (A) continue in effect any material compensation or material benefit plan or (B) provide the Employee with participation in
compensation and benefit plans at least equal (in terms of benefit levels and/or reward opportunities) to those provided for under each employee benefit plan, program and practice; provided, however, that if (1) the Employee’s annual
base salary or (2) the Employee’s participation in the benefits covered by clauses (A) or (B) above shall be reduced or altered on the same basis and terms as affects all other senior management of the Company, it shall not be “Good
Reason.” 
 
(e) “Option Award
Schedule” shall mean the Option Award Schedule set forth on Annex A. 
 
(f) “Plan” shall mean the 2001 Stock Incentive Plan of Tellium, Inc., as in effect from time to time. 
 

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(g) “Stock Options” shall mean the stock options to purchase Common Stock
granted to the Employee in the amounts specified on the Option Award Schedule. 
 
4.    CONDITIONS TO COMPANY’S OBLIGATIONS. The obligations of the Company pursuant to Section 1 of this Agreement is subject to the satisfaction or waiver, on or before the date hereof, of each of the
following conditions: 
 
(a) Employee shall have
executed and delivered the Non-Compete Agreement substantially in the form attached hereto as Annex C. 
 
5.    GENERAL PROVISIONS. 
 
(a) No Employment or Service Contract. Nothing in this Agreement shall confer upon the Employee any right to continue in the
service of the Company (or any subsidiary of the Company employing or retaining Employee) for any period of time or interfere with or restrict in any way the rights of the Company (or any subsidiary of the Company employing or retaining Employee) or
the Employee, which rights are hereby expressly reserved by each, to terminate the Employee status of Employee at any time for any reason whatsoever, with or without cause, subject to the provisions of any written employment agreement, if any,
between the Company and the Employee. 
 
(b)
Independent Advice. The Employee is not relying upon the Company or its representatives for legal, financial or tax advice in connection with his execution of this Agreement or in relation to any election made by the Employee hereunder. The
Employee is aware, and the Company has advised each of them, that they should seek independent financial, legal and tax counsel and advice with respect to any decision made by them in connection with this Agreement. 
 
(c) Governing Law. THIS AGREEMENT SHALL BE CONSTRUCTED
AND DETERMINED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF. 
 
(d) Employee Undertaking. The Employee hereby agrees to take whatever additional action and execute whatever additional documents
the Company may, in sole discretion, deem necessary or advisable in order to carry out or effect one or more of the obligations on the Employee under this Agreement. 
 
(e) No Waiver. No waiver of any breach or condition of this Agreement shall be deemed to be a waiver
of any other or subsequent breach or condition, whether of like or different nature. 
 
(f) Modification of Agreement. This Agreement may only be modified, amended, suspended or terminated, and any terms or conditions may be waived by a written instrument executed by the parties
hereto. 
 
(g) Notices. Any notice required
in connection with this Agreement shall be given in writing and shall be deemed effective upon personal delivery or upon deposit in 
 

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the United States mail, registered or certified, postage prepaid and addressed to the party entitled to
such notice at the address listed on the signature page hereto or at such other address as such party may designate by three days advance written notice under this Section 5(g) to all other parties to this Agreement. 
 
(h) Entire Agreement. This Agreement, the Stock Option
Agreement and the Non-Compete Agreement constitute the entire agreement and understanding among the parties hereto with regard to the subject matter hereof and supersede any and all prior understandings and agreements, whether oral or written,
between or among the parties hereto with respect to the subject matter hereof. 
 
(i) Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of which, when taken together, shall constitute one and the same
instrument. 
 
(j) Successors and Assigns.
The provisions of this Agreement shall inure to the benefit of, and be binding upon, the Company and its successors and assigns and the Employee and the Employee’s legal representatives, heirs, legatees, distributes, executors, administrators,
successors, assigns and transferees by operation of law. All obligations imposed upon the Employee and all rights granted to the Company under this Agreement shall be final, binding and conclusive upon the Employee and the Employee’s legal
representatives, heirs, legatees, distributees, executors, administrators, successors, assigns and transferees. 
 
(k) Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by applicable
law or public policy, all other terms and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially
adverse to any party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the
parties as closely as possible in an acceptable manner in order that the transactions contemplated hereby are consummated as originally contemplated to the greatest extent possible. 
 
(l) Headings. The section headings herein are for convenience only and shall not be used in
interpreting or construing this Agreement. 
 
* * * 
 

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IN WITNESS
WHEREOF, the parties have executed this Option Award Agreement on the day and year first indicated above. 
 
 

	 THE COMPANY:
  
  

	 	  	 TELLIUM, INC.
  
  

	 	  	 By:
	  	 
	 	  	 	  	

	 	  	 	  	 Name:
	  	 
	 	  	 	  	 Title:
	  	 
	 	  	 	  	 Address:
	  	 2 Crescent Place Oceanport, New Jersey 07757

	  
  
 THE EMPLOYEE:
  
  

	 Name:

	 Address:
	  	 
	 	  	

	 	  	  
  

 

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ANNEX A 
 
OPTION AWARD SCHEDULE 
 
Stock Options cancelled: 
 
Stock Options issued: 
 
 
 

6Second Amendment to Purchase Agreement

Note: Redacted portions have been marked with (***). The redacted portions are subject to a request for
confidential treatment that has been filed with the Securities and Exchange Commission. 
 
 
 
EXHIBIT 10.34 
 
 
SECOND AMENDMENT TO PURCHASE AGREEMENT 
 
THIS SECOND AMENDMENT TO PURCHASE AGREEMENT (this “Second Amendment”) is made effective this 3rd day of December 2002 by and between CABLE & WIRELESS GLOBAL LIMITED, an Ireland company,
(“C&W”) and TELLIUM, INC., a Delaware corporation, (“Tellium”). 
 
RECITALS 
 
WHEREAS, C&W and Tellium entered into that certain Purchase Agreement for the Supply of Network Systems dated as of August , 2000, as amended by the First Amendment to Purchase Agreement dated as of September 28,
2000, (together, the “Purchase Agreement”) and 
 
WHEREAS, C&W and Tellium desire to amend the Purchase Agreement as set forth in this Second Amendment; 
 
NOW, THEREFORE, in consideration of the premises, the promises set forth herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, C&W and Tellium hereby agree as follows: 
 

	 	1.	 	Following execution by both Parties of this Second Amendment, C&W shall issue (***) for Systems for the Cable & Wireless network in the aggregate amount of
(***) for the ordered Systems. Such (***) shall provide for delivery of a set of Systems over the first and second calendar quarters of 2003 as mutually agreed to between Cable & Wireless and Tellium. 

 

	 	2.	 	Cable & Wireless agrees to provide Tellium with written acceptance of (***) of Systems between January 1, 2003 and March 31, 2003, and (***) of Systems between
April 1, 2003 and June 30, 2003. Cable & Wireless agrees to perform any necessary testing of such equipment within thirty (30) calendar days of receipt of such equipment and inform Tellium of any deficiencies found. Tellium will then promptly
repair or replace any affected equipment. Payment for each and all of such Systems will be pursuant to written invoice due in accordance with the following schedule: (***) shall be paid to Tellium on or before (***); the additional (***) shall be
paid to Tellium on or before (***). 

 

	 	3.	 	Immediately upon Cable & Wireless making all payments required and subject to C&W having fulfilled its obligations to accept delivery of the systems under
Clause 2 above, without the need for any further action by either party, the following changes in Clauses 4, 5, 6, 7 & 8 of this Second Amendment will be considered made to and effective in the existing agreement: 

 

	 	4.	 	The term “Commitment” and its definition in Clause 1(A) of the Purchase Agreement are deleted in their entirety. 

 

	 	5.	 	The definition of “Contract Prices” in Clause 1(A) of the Purchase Agreement is deleted in its entirety and the following definition substituted in its
stead: 

 
Contract Prices mean
the prices to be paid to the Contractor by the Purchasers or its Agent under the Contract, which shall not exceed: 
 

	 	(1)	 	for each element of Hardware and Software, the discounts prescribed in Clause 3(I) off each list price set out in Exhibit A as may be (***) of this Agreement; and

 

	 	(2)	 	for services, (***) based on the (***) set forth in Exhibit A or any (***) effected by (***) of this Agreement. 

 

	 	6.	 	Clause 3(I) of the Purchase Agreement is deleted in its entirety and replaced by the following: 

 
I. During the initial five (5) year term of the Contract,
C&W through the Group Companies may, but shall not be obligated to, purchase in the aggregate U.S. Three Hundred Fifty Million Dollars (US $350,000,000) of Systems at the Contract Prices further may, during the term of the Contract, purchase
additional Systems at the Contract 

Note: Redacted portions have been marked with (***). The redacted portions are subject to a request for
confidential treatment that has been filed with the Securities and Exchange Commission. 
 
 
Prices, subject to rights of termination under this Purchase Agreement. The Parties acknowledge that it is
the business objective of the Contractor to be at the forefront of development of leading edge optical cross-connect and related technology and that the Contractor’s competitive technology position is a key reason for C&W’s selection
of the Contractor as a vendor. The applicable purchase discounts to be applied under subsection (1) of the definition of Contract Price shall be as follows: 
 

	 	·	 	For the purchases of Systems under this Contract from (***) up to and including (***) in the aggregate, the discount to be applied to the list price under the
definition of Contract Price is (***) 

 
For the purchases of Systems under this Contract after (***), the discount to be applied to the list price under the definition of Contract Price shall be (***). 
 

	 	7.	 	The phrase “,in satisfaction of the foregoing purchase obligation and any additional purchase,” is deleted from lines four and five of Clause 3(J) of the
Agreement. 

 

	 	8.	 	Clause 12(B)(3) of the Purchase Agreement is deleted in its entirety and is replaced with the following: 

 
(3) INTENTIONALLY DELETED 
 

	 	9.	 	Should any provision of this Second Amendment and/or its conditions be determined to be illegal or unenforceable, such provision or provisions shall be considered
severable, and this Second Amendment and the Purchase Agreement, as amended, shall remain in full force and effect and be binding upon the parties as though the unenforceable or illegal provision or provisions had never been included.

 

	 	10.	 	Both C&W and Tellium ratify and confirm the existence of the Purchase Agreement and all terms of the Purchase Agreement, except as specifically modified by this
Second Amendment. Terms capitalized but not defined in this Second Amendment shall have the meanings ascribed to them in the Purchase Agreement. 

 

	 	11.	 	This Second Amendment shall be governed and construed in accordance with the laws of England. This Second Amendment may be executed in counterparts, each of which
shall be deemed an original but together shall constitute but one and the same instrument. 

 
IN WITNESS WHEREOF, Cable & Wireless Global Limited and Tellium, Inc. have caused this Second Amendment to Purchase Agreement
to be executed as of the date hereinabove stated. 
 
 

	 TELLIUM, INC.
  
  
	  	 CABLE & WIRELESS GLOBAL LIMITED

	 Signature:
	 	 /s/    Harry J. Carr

	  	 Signature:
	  	 /s/    N.R.G. Wilson

	 Printed Name:
	 	 Harry J. Carr

	  	 Printed Name:
	  	 N.R.G. Wilson

	 Title:
	 	 Chairman and CEO

	  	 Title:
	  	 SVP GLOBAL PROCUREMENT

	 Date:
	 	 12/3/2002

	  	 Date:
	  	 9th December 2002

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