Document:

exv10w37

 

Exhibit 10.37

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS THERE IS AN EFFECTIVE
REGISTRATION STATEMENT UNDER SUCH ACT COVERING SUCH SECURITIES, THE SALE IS MADE IN ACCORDANCE WITH
RULE 144 UNDER SUCH ACT, OR THE COMPANY RECEIVES AN OPINION OF COUNSEL FOR THE HOLDER OF THESE
SECURITIES REASONABLY SATISFACTORY TO THE COMPANY STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT OR
HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT.

CONVERTIBLE PROMISSORY NOTE

			
	 	 	 
	$15,592,926
	 	March 26, 2007

     Finisar Corporation, a Delaware corporation (the “Company”), for value received,
promises and agrees to pay to Parviz Tayebati (“Holder”) the principal sum of Fifteen
Million Five Hundred Ninety-two Thousand Nine Hundred twenty-six Dollars ($15,592,926), together
with interest on the outstanding principal balance of this Convertible Promissory Note (this
“Note”) at the rate of five percent (5.0%) per annum. This Note is issued pursuant to that
Purchase Agreement dated as of the date hereof to which Company and Holder are parties (the
“Purchase Agreement”).

     1. Definitions. As used in this Note, the following terms shall have the definitions
ascribed to them below:

          1.1. “Commission” means the United States Securities and Exchange Commission.

          1.2. “Common Stock” means the common stock, $0.001 par value, of the Company, and any
securities into which such common stock may hereafter be classified.

          1.3. “Conversion Event” has the meaning set forth in Section 3.1 below.

          1.4. “Conversion Price” means the average closing trading price per share of the
Common Stock on the Nasdaq National Market (“NNM”) for the three (3) Trading Days ending
two (2) days prior to the Conversion Event.

          1.5. “Conversion Shares” has the meaning set forth in Section 3.2 below.

          1.6. “Escrow Note” means that certain convertible note in the original principal
amount of One Million Three Hundred Fifty-seven Thousand Dollars ($1,357,000) issued by the Company
to Holder simultaneous herewith pursuant to the Purchase Agreement.

          1.7. “Maturity Date” means that date nine (9) months following the date hereof,
subject to extension as provided in Section 2.1 below.

 

 

          1.8. “Securities Act” means the Securities Act of 1933, as amended.

          1.9. “Trading Day” means a day on which trading occurs on the NNM (or any successor
thereto).

     2. Payment.

          2.1. Payment at Maturity. The entire outstanding principal balance of and accrued but
unpaid interest on this Note shall be due and payable, if not converted prior thereto pursuant to
Section 3 below, on the Maturity Date. The Company shall have the right at any time and without
premium or penalty to prepay this Note, in whole or in part, in lieu of conversion pursuant to
Section 3 below, on or prior to the Maturity Date. Notwithstanding anything to the contrary
contained herein, the Company may in its sole discretion extend the Maturity Date for up to an
additional ninety (90) days in the event the Registration Statement (as defined in the Purchase
Agreement) filed by the Company with the Commission shall not have been declared effective on or
before the date nine (9) months following the date hereof (the “Extension Option”);
provided, however, that in such event the interest on the outstanding principal balance of this
Note shall increase to the rate of seven percent (7.0%) per annum beginning and effective as of the
date of exercise of the Extension Option.

          2.2. Interest. Subject to Section 2.1 above, the Company shall pay interest to the
Holder on the outstanding principal balance of this Note at the rate of five percent (5.0%) per
annum, which shall be payable in (a) cash on the Maturity Date, or (b) additional shares of Common
Stock if this Note is converted pursuant to Section 3 below, on the date(s) for delivery of
certificates representing the Conversion Shares provided for in Section 3.3. Interest shall be
calculated on the basis of a 365-day year and shall accrue daily commencing on the date hereof.

          2.3. Currency. All payments shall be in lawful money of the United States of America.

     3. Conversion. This Note shall convert into Common Stock as follows:

          3.1. Conversion Event. Upon the declaration of the effectiveness of a Registration
Statement filed by the Company with the Commission on or prior to the Maturity Date (the
“Conversion Event”), this Note shall be automatically converted into that number of shares
of Common Stock determined in accordance with Section 3.2 below.

          3.2. Shares Issuable Upon Conversion. Upon conversion of this Note in accordance with
Section 3.1 above, the Holder shall be entitled to receive a certificate representing that number
of shares of Common Stock (the “Conversion Shares”) equal to the entire principal balance
of and accrued but unpaid interest on this Note divided by the Conversion Price.

          Notwithstanding anything else contained herein, the total number of shares of Common Stock
that may be issued in the aggregate upon conversion of this Note and the Escrow Note shall not
exceed nine and ninety-nine one-hundreds percent (9.99%) of either the total shares outstanding or
the voting power outstanding of the Company as of the date of this Note (the “Maximum Shares
Issuable”). Accordingly, if the Conversion Price used to determine the

2

 

number of shares of Common Stock issuable would cause the total aggregate number of shares of
Common Stock issued upon conversion of this Note and the Escrow Note to exceed the Maximum Shares
Issuable, then this Note and the Escrow Note shall in the aggregate convert into the Maximum Shares
Issuable and that portion of the principal balance of and accrued but unpaid interest on this Note
which is not converted into shares of Common Stock shall be paid in cash upon conversion of this
Note.

          3.3. Stock Certificate. The Company shall cause a certificate or certificates
representing the Conversion Shares to be issued in the name of Holder and delivered to the Holder
by nationally recognized overnight delivery service within two (2) business days following the
occurrence of a Conversion Event.

          3.4. Fractional Shares. No fractional shares shall be issued upon conversion of this
Note and the value of any fractional shares issuable upon such conversion, based on the Conversion
Price, shall be paid by the Company to the Holder in cash.

          3.5. Satisfaction of Obligations. Upon conversion of the entire principal amount of
this Note and delivery of the certificates representing the Conversion Shares in accordance with
the provisions of this Section 3, the Company shall be forever released from all obligations and
liabilities hereunder.

     4. Default.

          4.1. Events of Default. The occurrence of either of the following events shall
constitute an “Event of Default” hereunder:

               (a) any failure by the Company to pay any amount payable in cash hereunder, in accordance with
the terms hereof, which default is not cured within ten (10) business days following written notice
thereof from the Holder; or

               (b) any failure by the Company to issue any securities issuable hereunder, in accordance with
the terms hereof.

          4.2. Remedies. During the continuance of an Event of Default, Holder shall have the
right to (i) accelerate the payment of the Remaining Principal Balance hereunder, and (ii) enforce
this Note by exercise of the rights and remedies granted to it by applicable law. The Company
shall pay all costs and expenses, including, without limitation, reasonable attorneys’ fees and
court costs, incurred or expended by the Holder in enforcing or collecting this Note as a result of
an Event of Default or the protection or prescription of any rights of Holder hereunder. The
Company hereby waives demand, notice, presentment, protest and notice of dishonor, diligence in
collection and notice of intent to accelerate maturity.

          4.3. Waiver; Cumulative Remedies. No course of dealing or any delay or failure to
exercise any right hereunder on the Holder’s part shall operate as a waiver of such right or
otherwise prejudice the Holder’s rights, powers or remedies. No single or partial waiver by the
Holder of any provision of this Note or of any breach or default hereunder or of any right or
remedy shall operate as a waiver of any other provision, breach, default right or remedy or of the
same provision, breach, default, right or remedy on a future occasion. The Holder’s rights and

3

 

remedies are cumulative and are in addition to all rights and remedies which the Holder may
have in law or in equity or by statute or otherwise; provided, however, that the Holder
acknowledges that the indemnification remedy provided in Section 9.4 of the Purchase Agreement
shall not be available to the Holder as a right or remedy for the Company’s breach or default
hereunder.

     5. Amendments. This Note may not be amended or modified, nor may any of its terms be
waived, except by written instruments signed by the Company and the Holder and then only to the
extent set forth therein.

     6. Severability. If any provision of this Note is determined to be invalid, illegal
or unenforceable, in whole or in part, the validity, legality and enforceability of any of the
remaining provisions or portions of this Note shall not in any way be affected or impaired thereby.

     7. Notices. Any notice or other communication required or desired to be given
hereunder shall be in the form and manner specified below, and shall be addressed to the party to
be notified as follows:

	 	 	 	 	 
	 

	 	If to Holder:
	 	Parviz Tayebati
	 

	 	 	 	2 Avery Street, 27E
	 

	 	 	 	Boston, MA 02111
	 
	 	 	 	 
	 

	 	with copy to:
	 	Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
	 

	 	 	 	One Financial Center
	 

	 	 	 	Boston, MA 02111
	 

	 	 	 	Telecopy (617) 542-2241
	 

	 	 	 	Attn: Stanley A. Twarog, Esq.
	 
	 	 	 	 
	 

	 	If to the Company:
	 	Finisar Corporation
	 

	 	 	 	1389 Moffett Park Drive
	 

	 	 	 	Sunnyvale, CA 94089
	 

	 	 	 	Attn: Chief Financial Officer
	 
	 	 	 	 
	 

	 	Telecopy:
	 	(408) 541-4154

or to such other address as each party designates to the other by notice in the manner herein
prescribed. Notice shall be deemed given hereunder if (i) delivered personally or otherwise
actually received, (ii) sent by overnight delivery service, (iii) mailed by first-class United
States mail, postage prepaid, registered or certified, with return receipt requested, or (iv)
transmitted by facsimile transmission (and confirmed by a copy delivered in accordance with clauses
(i), (ii) or (iii). Notice mailed as provided in clause (iii) above shall be effective upon the
expiration of three (3) business days after its deposit in the United States mail. Notice given in
any other manner described in this section shall be effective upon receipt by the addressee
thereof; provided, however, that if any notice is tendered to an addressee and delivery thereof is
refused by such addressee, such notice shall be effective upon such tender unless expressly set
forth in such notice.

4

 

     8. Replacement. Upon the Company’s receipt of reasonably satisfactory evidence of the
loss, theft, destruction or mutilation of this Note and (i) in the case of any such loss theft or
destruction, upon delivery of indemnity reasonably satisfactory to the Company in form and amount,
or (ii) in the case of any such mutilation, upon surrender of this Note for cancellation, the
Company, at its expense, shall execute and deliver, in lieu thereof, a new Note.

     9. Legal Fees. In the event of any legal action to enforce the rights of the Holder
or the Company, the party prevailing in such action shall be entitled, in addition to such other
relief as may be granted, all reasonable costs and expenses, including reasonable attorneys’ fees,
incurred in such action.

     10. Assignment. Neither this Note nor any of the rights, interests or obligations
hereunder may be assigned, by operation of law or otherwise, in whole or in part, by the Company,
without the prior written consent of the Holder, or by the Holder, without the prior written
consent of the Company, which consent shall not be unreasonably withheld.

     11. No Rights as Stockholder. This Note, as such, shall not entitle the Holder to any
rights as a stockholder of the Company.

     12. Headings. The descriptive headings in this Note are inserted for convenience only
and do not constitute a part of this Note.

     13. Governing Law. The validity, meaning and effect of this Note shall be determined
in accordance with the laws of the State of Delaware, without regard to principles of conflicts of
law.

     14. Binding Effect. This Note shall be binding upon, and shall inure to the benefit
of, the Company and the Holder and their respective successors and assigns.

     15. Time. Time is of the essence hereunder.

[SIGNATURE PAGE FOLLOWS]

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     IN WITNESS WHEREOF, the Company has duly caused this Note to be signed in its name and on its
behalf by its duly authorized officer as of the date hereinabove written.

	 	 	 	 	 
	 	 	FINISAR CORPORATION
	 
	 	 	 	 
	 

	 	By:
	 	/s/ S. K. Workman
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:
	 	S. K. Workman
	 
	 	 	 	 
	 

	 	Title:
	 	CFO
	 
	 	 	 	 
	AGREED AND ACCEPTED:
	 	 	 	 
	 
	 	 	 	 
	/s/ Parviz Tayebati
	 	 	 	 
	 

PARVIZ TAYEBATI

	 	 	 	 

6exv10w38

 

Exhibit 10.38

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS THERE IS AN EFFECTIVE
REGISTRATION STATEMENT UNDER SUCH ACT COVERING SUCH SECURITIES, THE SALE IS MADE IN ACCORDANCE WITH
RULE 144 UNDER SUCH ACT, OR THE COMPANY RECEIVES AN OPINION OF COUNSEL FOR THE HOLDER OF THESE
SECURITIES REASONABLY SATISFACTORY TO THE COMPANY STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT OR
HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT.

CONVERTIBLE PROMISSORY NOTE

			
	 	 	 
	$1,357,000
	 	March 26 2007

     Finisar Corporation, a Delaware corporation (the “Company”), for value received,
promises to pay to Parviz Tayebati (“Holder”) the principal sum of One Million Three
Hundred Fifty-seven Thousand Dollars ($1,357,000), together with interest on the outstanding
principal balance of this Convertible Promissory Note (this “Note”) at the rate of five
percent (5.0%) per annum. This Note is issued pursuant to that Purchase Agreement dated as of the
date hereof to which Company and Holder are parties (the “Purchase Agreement”).

     1. Definitions. As used in this Note, the following terms shall have the definitions
ascribed to them below:

          1.1. “Commission” means the United States Securities and Exchange Commission.

          1.2. “Common Stock” means the common stock, $0.001 par value, of the Company, and any
securities into which such common stock may hereafter be classified.

          1.3. “Conversion Event” has the meaning set forth in Section 3.1 below.

          1.4. “Conversion Price” means the average closing trading price per share of the
Common Stock on the Nasdaq National Market (“NNM”) for the three (3) Trading Days ending
two (2) days prior to the Conversion Event.

          1.4. “Conversion Shares” has the meaning set forth in Section 3.2 below.

          1.5. “Deferred Amounts” has the meaning set forth in Section 2.1 below.

          1.6. “Escrow Agreement” means the Escrow Agreement dated March 26 2007, by and among
the Company, Holder, Sellers’ Representative and Comerica Bank (the “Escrow Agent”).

          1.7. “Initial Consideration Note” means that certain convertible note in the original
principal amount of Fifteen Million Five Hundred Ninety-two Thousand Nine Hundred

 

 

twenty-six Dollars ($15,592,926) issued by the Company to Holder simultaneous herewith
pursuant to the Purchase Agreement.

          1.8. “Maturity Date” means that date twelve (12) months following the date hereof.

          1.9. “Securities Act” means the Securities Act of 1933, as amended.

          1.10. “Trading Day” means a day on which trading occurs on the NNM (or any successor
thereto).

     2. Payment.

          2.1. Payment. The entire outstanding balance of and accrued but unpaid interest on
this Note shall be due and payable, if not converted pursuant to Section 3 below, on the Maturity
Date; provided, however, if an Indemnified Person (as such term is defined in the Purchase
Agreement) provides notice to the Holder and the Escrow Agent of an Indemnity Claim or Claims (as
such term is defined in the Escrow Agreement) pursuant to Section 9.2(A) of the Purchase Agreement
for which the amount of Escrow Cash (as defined in the Purchase Agreement) is insufficient, then
the Company may, in its sole discretion, defer payments under this Note in an amount equal to the
lesser of (i) such insufficiency or (ii) the Indemnity Claim or Claims that have not been resolved
at the Maturity Date; and provided further, if an Indemnified Person provides notice to the Holder
and the Escrow Agent of a claim for indemnification against Holder pursuant to Section 9.3 of the
Purchase Agreement then the Company may, in its sole discretion, defer payments under this Note in
an amount equal to the Indemnity Claim or Claims that have not been resolved at the Maturity Date
(the amount determined pursuant to this first sentence of Section 2.1 being the “Deferred
Amounts”). Within five (5) business days following the date on which the Company and the
Holder agree or the arbitrator under Section 10.3 of the Escrow Agreement determines that a
Indemnified Person is entitled to recover an amount with respect to the Indemnity Claim or Claims
(the “Resolved Amount”), such Resolved Amount shall be offset without further action or
notice against the Deferred Amounts. If the Resolved Amount is less than the Deferred Amounts, the
Company shall pay the remaining principal balance on this Note (after offset of the Resolved
Amount) to the Holder within five (5) business days after the date on which the offset is applied.
The Company shall have the right at any time and without premium or penalty to prepay this Note, in
whole or in part, in lieu of conversion pursuant to Section 3 below, on or prior to the Maturity
Date.

          2.2. Interest. The Company shall pay interest to the Holder on the outstanding
principal balance of this Note at the rate of five percent (5.0%) per annum, which shall be payable
at the Company’s option in (a) cash or (b) additional shares of Common Stock if this Note is
converted pursuant to Section 3 below. Payment of the interest in cash shall be made on the
Maturity Date and payment of the interest in shares of Common Stock shall be made on the date(s)
for delivery of certificates representing the Conversion Shares provided for in Section 3.3.
Interest shall be calculated on the basis of a 365-day year and shall accrue daily commencing on
the date hereof.

2

 

          2.3. Currency. All payments shall be in lawful money of the United States of America.

     3. Conversion. This Note shall convert into Common Stock as follows:

          3.1. Conversion Event. Provided that the Registration Statement (as defined in the
Purchase Agreement) filed by the Company with the Commission shall have been declared effective
(the “Conversion Event”), the entire outstanding principal balance of and accrued but
unpaid interest on this Note shall automatically convert into that number of shares of Common Stock
determined in accordance with Section 3.2 below upon the Maturity Date (the “Conversion
Event”). If requested by the Company, the Holder will provide joint instructions with the
Holder to the Company’s transfer agent and the Escrow Agent (as defined in the Escrow Agreement) to
sell the Conversion Shares and deposit the proceeds from the sale of such Conversion Shares into
escrow.

          3.2. Shares Issuable Upon Conversion. Upon the conversion of this Note in accordance
with Section 3.1 above, the Holder shall be entitled to receive a certificate representing that
number of shares of Common Stock (the “Conversion Shares”) equal to the portion of
principal balance of and accrued but unpaid interest on this Note that is converted on such
Conversion Event, divided by the Conversion Price.

          Notwithstanding anything else contained herein, the total number of shares of Common Stock
that may be issued in the aggregate upon conversion of this Note and the Initial Consideration Note
shall not exceed nine and ninety-nine one-hundreds percent (9.99%) of either the total shares
outstanding or the voting power outstanding of the Company as of the date of this Note (the
“Maximum Shares Issuable”). Accordingly, if the Conversion Price used to determine the
number of shares of Common Stock issuable would cause the total aggregate number of shares of
Common Stock issued upon conversion of this Note and the Initial Consideration Note to exceed the
Maximum Shares Issuable, then this Note and the Initial Consideration Note shall in the aggregate
convert into the Maximum Shares Issuable and that portion of the principal balance of and accrued
but unpaid interest on this Note which is not converted into shares of Common Stock shall be paid
in cash upon conversion of this Note.

          3.3. Stock Certificate. The Company shall cause a certificate representing the
Conversion Shares to be issued in the name of Holder within two (2) business days following the
occurrence of a Conversion Event.

          3.4. Fractional Shares. No fractional shares shall be issued upon conversion of this
Note and the value of any fractional shares issuable upon such conversion, based on the Conversion
Price, shall be paid by the Company to the Holder in cash.

          3.5. Satisfaction of Obligations. Upon conversion of the entire principal amount of
this Note and delivery of the certificates representing the Conversion Shares in accordance with
the provisions of this Section 3, the Company shall be forever released from all obligations and
liabilities hereunder.

3

 

     4. Default.

          4.1. Events of Default. The occurrence of either of the following events shall
constitute an “Event of Default” hereunder:

               (a) any failure by the Company to pay any amount payable in cash hereunder, in accordance with
the terms hereof, which default is not cured within ten (10) business days following notice thereof
from the Holder; or

               (b) any failure by the Company to issue any securities issuable hereunder, in accordance with
the terms hereof.

          4.2. Remedies. During the continuance of an Event of Default, Holder shall have the
right to (i) accelerate the payment of the outstanding principal balance hereunder, and (ii)
enforce this Note by exercise of the rights and remedies granted to it by applicable law. The
Company shall pay all costs and expenses, including, without limitation, reasonable attorneys’ fees
and court costs, incurred or expended by the Holder in enforcing or collecting this Note as a
result of an Event of Default or the protection or prescription of any rights of Holder hereunder.
The Company hereby waives demand, notice, presentment, protest and notice of dishonor, diligence in
collection and notice of intent to accelerate maturity.

          4.3. Waiver; Cumulative Remedies. No course of dealing or any delay or failure to
exercise any right hereunder on the Holder’s part shall operate as a waiver of such right or
otherwise prejudice the Holder’s rights, powers or remedies. No single or partial waiver by the
Holder of any provision of this Note or of any breach or default hereunder or of any right or
remedy shall operate as a waiver of any other provision, breach, default right or remedy or of the
same provision, breach, default, right or remedy on a future occasion. The Holder’s rights and
remedies are cumulative and are in addition to all rights and remedies which the Holder may have in
law or in equity or by statute or otherwise; provided, however, that the Holder acknowledges that
the indemnification remedy provided in Section 9.4 of the Purchase Agreement shall not be available
to the Holder as a right or remedy for the Company’s breach or default hereunder.

     5. Amendments. This Note may not be amended or modified, nor may any of its terms be
waived, except by written instruments signed by the Company and the Holder and then only to the
extent set forth therein.

     6. Severability. If any provision of this Note is determined to be invalid, illegal
or unenforceable, in whole or in part, the validity, legality and enforceability of any of the
remaining provisions or portions of this Note shall not in any way be affected or impaired thereby.

     7. Notices. Any notice or other communication required or desired to be given
hereunder shall be in the form and manner specified below, and shall be addressed to the party to
be notified as follows:

4

 

	 	 	 	 	 
	 

	 	If to Holder:
	 	Parviz Tayebati
	 

	 	 	 	2 Avery Street, 27E
	 

	 	 	 	Boston, MA 02111
	 
	 	 	 	 
	 

	 	with copy to:
	 	Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
	 

	 	 	 	One Financial Center
	 

	 	 	 	Boston, MA 02111
	 

	 	 	 	Telecopy (617) 542-2241
	 

	 	 	 	Attn: Stanley A. Twarog, Esq.
	 
	 	 	 	 
	 

	 	If to the Company:
	 	Finisar Corporation
	 

	 	 	 	1389 Moffett Park Drive
	 

	 	 	 	Sunnyvale, CA 94089
	 

	 	 	 	Attn: Chief Financial Officer
	 
	 	 	 	 
	 

	 	Telecopy:
	 	(408) 541-4154

or to such other address as each party designates to the other by notice in the manner herein
prescribed. Notice shall be deemed given hereunder if (i) delivered personally or otherwise
actually received, (ii) sent by overnight delivery service, (iii) mailed by first-class United
States mail, postage prepaid, registered or certified, with return receipt requested, or (iv)
transmitted by facsimile transmission (and confirmed by a copy delivered in accordance with clauses
(i), (ii) or (iii). Notice mailed as provided in clause (iii) above shall be effective upon the
expiration of three (3) business days after its deposit in the United States mail. Notice given in
any other manner described in this section shall be effective upon receipt by the addressee
thereof; provided, however, that if any notice is tendered to an addressee and delivery thereof is
refused by such addressee, such notice shall be effective upon such tender unless expressly set
forth in such notice.

     8. Replacement. Upon the Company’s receipt of reasonably satisfactory evidence of the
loss, theft, destruction or mutilation of this Note and (i) in the case of any such loss theft or
destruction, upon delivery of indemnity reasonably satisfactory to the Company in form and amount,
or (ii) in the case of any such mutilation, upon surrender of this Note for cancellation, the
Company, at its expense, shall execute and deliver, in lieu thereof, a new Note.

     9. Legal Fees. In the event of any legal action to enforce the rights of the Holder
or the Company, the party prevailing in such action shall be entitled, in addition to such other
relief as may be granted, all reasonable costs and expenses, including reasonable attorneys’ fees,
incurred in such action.

     10. Assignment. Neither this Note nor any of the rights, interests or obligations
hereunder may be assigned, by operation of law or otherwise, in whole or in part, by the Company,
without the prior written consent of the Holder, or by the Holder, without the prior written
consent of the Company.

5

 

     11. No Rights as Stockholder. This Note, as such, shall not entitle the Holder to any
rights as a stockholder of the Company.

     12. Headings. The descriptive headings in this Note are inserted for convenience only
and do not constitute a part of this Note.

     13. Governing Law. The validity, meaning and effect of this Note shall be determined
in accordance with the laws of the State of Delaware, without regard to principles of conflicts of
law.

     14. Binding Effect. This Note shall be binding upon, and shall inure to the benefit
of, the Company and the Holder and their respective successors and assigns.

     15. Time. Time is of the essence hereunder.

[SIGNATURE PAGE FOLLOWS]

6

 

     IN WITNESS WHEREOF, the Company has duly caused this Note to be signed in its name and on its
behalf by its duly authorized officer as of the date hereinabove written.

	 	 	 	 	 
	 	 	FINISAR CORPORATION
	 
	 	 	 	 
	 

	 	By:
	 	/s/ S. K. Workman
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:
	 	S. K. Workman
	 
	 	 	 	 
	 

	 	Title:
	 	CFO
	 
	 	 	 	 
	AGREED AND ACCEPTED:
	 	 	 	 
	 
	 	 	 	 
	/s/ Parviz Tayebati
	 	 	 	 
	 

PARVIZ TAYEBATI

	 	 	 	 

7

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