Document:

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                                                                    EXHIBIT 10.2

                           Chorum Technologies Inc.

                                1997 Stock Plan

                          Adopted on October 21, 1997
                      (Amended and Restated May 14, 1998)
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                               TABLE OF CONTENTS

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SECTION 1.  ESTABLISHMENT AND PURPOSE.............................      1

SECTION 2.  ADMINISTRATION........................................      1

 (a) Committees of the Board of Directors.........................      1
 (b) Authority of the Board of Directors..........................      1

SECTION 3.  ELIGIBILITY...........................................      1

 (a) General Rule.................................................      1
 (b) Ten-Percent Stockholders.....................................      1

SECTION 4.  STOCK SUBJECT TO PLAN.................................      2

 (a) Basic Limitation.............................................      2
 (b) Additional Shares............................................      2

SECTION 5.  TERMS AND CONDITIONS OF AWARDS OR SALES...............      2

 (a) Stock Purchase Agreement.....................................      2
 (b) Duration of Offers and Nontransferability of Rights..........      2
 (c) Purchase Price...............................................      2
 (d) Withholding Taxes............................................      3
 (e) Restrictions on Transfer of Shares...........................      3
 (f) Accelerated Vesting..........................................      3

SECTION 6.  TERMS AND CONDITIONS OF OPTIONS.......................      3

 (a) Stock Option Agreement.......................................      3
 (b) Number of Shares.............................................      3
 (c) Exercise Price...............................................      3
 (d) Withholding Taxes............................................      4
 (e) Exercisability...............................................      4
 (f) Accelerated Exercisability...................................      4
 (g) Term.........................................................      4
 (h) Nontransferability...........................................      4
 (i) No Rights as a Stockholder...................................      4
 (j) Modification, Extension and Assumption of Options............      5
 (k) Restrictions on Transfer of Shares...........................      5
 (l) Accelerated Vesting..........................................      5

SECTION 7.  PAYMENT FOR SHARES....................................      5
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                                       i
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<TABLE>
<S>                                                                <C>
 (a) General Rule.................................................  5
 (b) Surrender of Stock...........................................  5
 (c) Services Rendered............................................  5
 (d) Promissory Note..............................................  6
 (e) Exercise/Sale................................................  6
 (f) Exercise/Pledge..............................................  6

SECTION 8.  ADJUSTMENT OF SHARES..................................  6

 (a) General......................................................  6
 (b) Mergers and Consolidations...................................  6
 (c) Reservation of Rights........................................  7

SECTION 9.  SECURITIES LAWS REQUIREMENTS..........................  7

SECTION 10.  NO RETENTION RIGHTS..................................  7

SECTION 11.  DURATION AND AMENDMENTS..............................  8

 (a) Term of the Plan.............................................  8
 (b) Right to Amend or Terminate the Plan.........................  8
 (c) Effect of Amendment or Termination...........................  8

SECTION 12.  DEFINITIONS..........................................  8
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                                      ii
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                    Chorum Technologies Inc. 1997 Stock Plan

SECTION 1.  ESTABLISHMENT AND PURPOSE.

     The purpose of the Plan is to offer selected individuals an opportunity to
acquire a proprietary interest in the success of the Company, or to increase
such interest, by purchasing Shares of the Company's Stock.  The Plan provides
both for the direct award or sale of Shares and for the grant of Options to
purchase Shares.  Options granted under the Plan may include Nonstatutory
Options as well as ISOs intended to qualify under Section 422 of the Code.

     Capitalized terms are defined in Section 12.

SECTION 2.  ADMINISTRATION.

     (a)  Committees of the Board of Directors. The Plan may be administered
by one or more Committees. Each Committee shall consist of one or more members
of the Board of Directors who have been appointed by the Board of Directors.
Each Committee shall have such authority and be responsible for such functions
as the Board of Directors has assigned to it. If no Committee has been
appointed, the entire Board of Directors shall administer the Plan. Any
reference to the Board of Directors in the Plan shall be construed as a
reference to the Committee (if any) to whom the Board of Directors has assigned
a particular function.

     (b)  Authority of the Board of Directors.  Subject to the provisions of the
Plan, the Board of Directors shall have full authority and discretion to take
any actions it deems necessary or advisable for the administration of the Plan.
All decisions, interpretations and other actions of the Board of Directors shall
be final and binding on all Purchasers, all Optionees and all persons deriving
their rights from a Purchaser or Optionee.

SECTION 3.  ELIGIBILITY.

     (a)  General Rule.  Only Employees, Outside Directors and Consultants shall
be eligible for the grant of Options or the direct award or sale of Shares. Only
Employees shall be eligible for the grant of ISOs.

     (b)  Ten-Percent Stockholders.  An individual who owns more than 10% of the
total combined voting power of all classes of outstanding stock of the Company,
its Parent or any of its Subsidiaries shall not be eligible for the grant of an
ISO unless (i) the Exercise Price is at least 110% of the Fair Market Value of a
Share on the date of grant and (ii) such ISO by its terms is not exercisable
after the expiration of five years from the date of grant.  For purposes of this
Subsection (b), in determining stock ownership, the attribution rules of Section
424(d) of the Code shall be applied.

                                       1
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SECTION 4.  STOCK SUBJECT TO PLAN.

     (a)  Basic Limitation.   Shares offered under the Plan may be authorized
but unissued Shares or treasury Shares. The aggregate number of Shares that may
be issued under the Plan (upon exercise of Options or other rights to acquire
Shares) shall not exceed 2,310,000 Shares, subject to adjustment pursuant to
Section 8. The number of Shares that are subject to Options or other rights
outstanding at any time under the Plan shall not exceed the number of Shares
that then remain available for issuance under the Plan. The Company, during the
term of the Plan, shall at all times reserve and keep available sufficient
Shares to satisfy the requirements of the Plan.

     (b)  Additional Shares.  In the event that any outstanding Option or other
right for any reason expires or is canceled or otherwise terminated, the Shares
allocable to the unexercised portion of such Option or other right shall again
be available for the purposes of the Plan.  In the event that Shares issued
under the Plan are reacquired by the Company pursuant to any forfeiture
provision, right of repurchase or right of first refusal, such Shares shall
again be available for the purposes of the Plan, except that the aggregate
number of Shares which may be issued upon the exercise of ISOs shall in no event
exceed 2,310,000 Shares (subject to adjustment pursuant to Section 8).

SECTION 5.  TERMS AND CONDITIONS OF AWARDS OR SALES.

     (a)  Stock Purchase Agreement.  Each award or sale of Shares under the Plan
(other than upon exercise of an Option) shall be evidenced by a Stock Purchase
Agreement between the Purchaser and the Company.  Such award or sale shall be
subject to all applicable terms and conditions of the Plan and may be subject to
any other terms and conditions which are not inconsistent with the Plan and
which the Board of Directors deems appropriate for inclusion in a Stock Purchase
Agreement.  The provisions of the various Stock Purchase Agreements entered into
under the Plan need not be identical.

     (b)  Duration of Offers and Nontransferability of Rights.    Any right to
acquire Shares under the Plan (other than an Option) shall automatically expire
if not exercised by the Purchaser within 30 days after the grant of such right
was communicated to the Purchaser by the Company.  Such right shall not be
transferable and shall be exercisable only by the Purchaser to whom such right
was granted.

     (c)  Purchase Price.  The Purchase Price of Shares to be offered under the
Plan, if newly issued, shall not be less than the par value of such Shares.
Subject to the preceding sentence, the Purchase Price shall be determined by the
Board of Directors at its sole discretion.  The Purchase Price shall be payable
in a form described in Section 7.

     (d)  Withholding Taxes.  As a condition to the purchase of Shares, the
Purchaser shall make such arrangements as the Board of Directors may require for
the satisfaction of any federal, state, local or foreign withholding tax
obligations that may arise in connection with such purchase.

                                       2
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     (e)  Restrictions on Transfer of Shares and Minimum Vesting.  Any Shares
awarded or sold under the Plan shall be subject to such special forfeiture
conditions, rights of repurchase, rights of first refusal and other transfer
restrictions as the Board of Directors may determine.  Such restrictions shall
be set forth in the applicable Stock Purchase Agreement and shall apply in
addition to any restrictions that may apply to holders of Shares generally.

     (f)  Accelerated Vesting. Unless the applicable Stock Purchase Agreement
provides otherwise, any right to repurchase a Purchaser's Shares at the original
Purchase Price (if any) upon termination of the Purchaser's Service shall lapse
and all of such Shares shall become vested if (i) the Company is subject to a
Change in Control before the Purchaser's Service terminates and (ii) the
repurchase right is not assigned to the entity that employs the Purchaser
immediately after the Change in Control or to its parent or subsidiary. A Stock
Purchase Agreement may also provide for accelerated vesting in the event of the
Optionee's death or disability or other events.

SECTION 6.  TERMS AND CONDITIONS OF OPTIONS.

     (a)  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 and conditions of the Plan
and may be subject to any other terms and conditions which are not inconsistent
with the Plan and which the Board of Directors deems appropriate for inclusion
in a Stock Option Agreement. The provisions of the various Stock Option
Agreements entered into under the Plan need not be identical.

     (b)  Number of Shares. Each Stock Option Agreement shall specify the number
of Shares that are subject to the Option and shall provide for the adjustment of
such number in accordance with Section 8. The Stock Option Agreement shall also
specify whether the Option is an ISO or a Nonstatutory Option.

     (c)  Exercise Price. Each Stock Option Agreement shall specify the Exercise
Price. The Exercise Price of an ISO shall not be less than 100% of the Fair
Market Value of a Share on the date of grant, and a higher percentage may be
required by Section 3(b). The Exercise Price of a Nonstatutory Option to
purchase newly issued Shares shall not be less than the par value of such
Shares. Subject to the preceding two sentences, the Exercise Price under an
Option shall be determined by the Board of Directors at its sole discretion. The
Exercise Price shall be payable in a form described in Section 7.

     (d)  Withholding Taxes.  As a condition to the exercise of an Option, the
Optionee shall make such arrangements as the Board of Directors may require for
the satisfaction of any federal, state, local or foreign withholding tax
obligations that may arise in connection with such exercise.  The Optionee shall
also make such arrangements as the Board of Directors may require for the
satisfaction of any federal, state, local or foreign withholding tax obligations
that may arise in connection with the disposition of Shares acquired by
exercising an Option.

                                       3
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     (e)  Exercisability. Each Stock Option Agreement shall specify the date
when all or any installment of the Option is to become exercisable. The
exercisability provisions of a Stock Option Agreement shall be determined by the
Board of Directors at its sole discretion.

     (f)  Accelerated Exercisability. Unless the applicable Stock Option
Agreement provides otherwise, all of an Optionee's Options shall become
exercisable in full if (i) the Company is subject to a Change in Control before
the Optionee's Service terminates, (ii) such Options do not remain outstanding,
(iii) such Options are not assumed by the surviving corporation or its parent
and (iv) the surviving corporation or its parent does not substitute options
with substantially the same terms for such Options. A Stock Option Agreement may
also provide for accelerated exercisability in the event of the Optionee's
death, disability or retirement or other events.

     (g)  Basic Term.  The Stock Option Agreement shall specify the term of the
Option.  The term shall not exceed 10 years from the date of grant, and in the
case of an ISO a shorter term may be required by Section 3(b).  Subject to the
preceding sentence, the Board of Directors at its sole discretion shall
determine when an Option is to expire.  A Stock Option Agreement may provide for
expiration prior to the end of its term in the event of the termination of the
Optionee's Service or death.

     (h)  Nontransferability.  No Option shall be transferable by the Optionee
other than by beneficiary designation, will or the laws of descent and
distribution. An Option may be exercised during the lifetime of the Optionee
only by the Optionee or by the Optionee's guardian or legal representative. No
Option or interest therein may be transferred, assigned, pledged or hypothecated
by the Optionee during the Optionee's lifetime, whether by operation of law or
otherwise, or be made subject to execution, attachment or similar process.

     (i)  No Rights as a Stockholder. An Optionee, or a transferee of an
Optionee, shall have no rights as a stockholder with respect to any Shares
covered by the Optionee's Option until such person becomes entitled to receive
such Shares by filing a notice of exercise and paying the Exercise Price
pursuant to the terms of such Option.

     (j)  Modification, Extension and Assumption of Options.  Within the
limitations of the Plan, the Board of Directors may modify, extend or assume
outstanding Options or may accept the cancellation of outstanding Options
(whether granted by the Company or another issuer) in return for the grant of
new Options for the same or a different number of Shares and at the same or a
different Exercise Price.  The foregoing notwithstanding, no modification of an
Option shall, without the consent of the Optionee, impair the Optionee's rights
or increase the Optionee's obligations under such Option.

     (k)  Restrictions on Transfer of Shares. Any Shares issued upon exercise of
an Option shall be subject to such special forfeiture conditions, rights of
repurchase, rights of first refusal and other transfer restrictions as the Board
of Directors may determine. Such restrictions shall be set forth in the
applicable Stock Option Agreement and shall apply in addition to any
restrictions that may apply to holders of Shares generally.

                                       4
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     (l)  Accelerated Vesting.  Unless the applicable Stock Option Agreement
provides otherwise, any right to repurchase an Optionee's Shares at the original
Exercise Price upon termination of the Optionee's Service shall lapse and all of
such Shares shall become vested if (i) the Company is subject to a Change in
Control before the Optionee's Service terminates and (ii) the repurchase right
is not assigned to the entity that employs the Optionee immediately after the
Change in Control or to its parent or subsidiary. A Stock Option Agreement may
also provide for accelerated vesting in the event of the Optionee's death or
disability or other events.

SECTION 7.  PAYMENT FOR SHARES.

     (a)  General Rule.  The entire Purchase Price or Exercise Price of Shares
issued under the Plan shall be payable in cash or cash equivalents at the time
when such Shares are purchased, except as otherwise provided in this Section 7.

     (b)  Surrender of Stock.  To the extent that a Stock Option Agreement so
provides, all or any part of the Exercise Price may be paid by surrendering, or
attesting to the ownership of, Shares that are already owned by the Optionee.
Such Shares shall be surrendered to the Company in good form for transfer and
shall be valued at their Fair Market Value on the date when the Option is
exercised.  The Optionee shall not surrender, or attest to the ownership of,
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.

     (c)  Services Rendered. At the discretion of the Board of Directors, Shares
may be awarded under the Plan in consideration of services rendered to the
Company, a Parent or a Subsidiary prior to the award. At the discretion of the
Board of Directors, Shares may also be awarded under the Plan in consideration
of services to be rendered to the Company, a Parent or a Subsidiary after the
award, except that the par value of such Shares, if newly issued, shall be paid
in cash or cash equivalents.

     (d)  Promissory Note.  To the extent that a Stock Option Agreement or Stock
Purchase Agreement so provides, all or a portion of the Exercise Price or
Purchase Price (as the case may be) of Shares issued under the Plan may be paid
with a full-recourse promissory note.  However, the par value of the Shares, if
newly issued, shall be paid in cash or cash equivalents.  The Shares shall be
pledged as security for payment of the principal amount of the promissory note
and interest thereon.  The interest rate payable under the terms of the
promissory note shall not be less than the minimum rate (if any) required to
avoid the imputation of additional interest under the Code.  Subject to the
foregoing, the Board of Directors (at its sole discretion) shall specify the
term, interest rate, amortization requirements (if any) and other provisions of
such note.

     (e)  Exercise/Sale.  To the extent that a Stock Option Agreement so
provides, and if Stock is publicly traded, payment may be made all or in part by
the delivery (on a form prescribed by the Company) of an irrevocable direction
to a securities broker approved by the Company to sell Shares and to deliver all
or part of the sales proceeds to the Company in payment of all or part of the
Exercise Price and any withholding taxes.

                                       5
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     (f)  Exercise/Pledge. To the extent that a Stock Option Agreement so
provides, and if Stock is publicly traded, payment may be made all or in part by
the delivery (on a form prescribed by the Company) of an irrevocable direction
to pledge Shares to a securities broker or lender approved by the Company, as
security for a loan, and to deliver all or part of the loan proceeds to the
Company in payment of all or part of the Exercise Price and any withholding
taxes.

SECTION 8.  ADJUSTMENT OF SHARES.

     (a)  General.  In the event of a subdivision of the outstanding Stock, a
declaration of a dividend payable in Shares, a declaration of an extraordinary
dividend payable in a form other than Shares in an amount that has a material
effect on the Fair Market Value of the Stock, a combination or consolidation of
the outstanding Stock into a lesser number of Shares, a recapitalization, a
spin-off, a reclassification or a similar occurrence, the Board of Directors
shall make appropriate adjustments in one or more of (i) the number of Shares
available for future grants under Section 4, (ii) the number of Shares covered
by each outstanding Option or (iii) the Exercise Price under each outstanding
Option.

     (b)  Mergers and Consolidations. In the event that the Company is a party
to a merger or consolidation, outstanding Options shall be subject to the
agreement of merger or consolidation. Such agreement, without the Optionees'
consent, may provide for:

          (i)   The continuation of such outstanding Options by the Company (if
     the Company is the surviving corporation);

          (ii)  The assumption of the Plan and such outstanding Options by the
     surviving corporation or its parent;

          (iii) The substitution by the surviving corporation or its parent of
     options with substantially the same terms for such outstanding Options; or

          (iv)  The cancellation of such outstanding Options without payment of
     any consideration.

     (c)  Reservation of Rights.  Except as provided in this Section 8, an
Optionee or Purchaser shall have no rights by reason of (i) any subdivision or
consolidation of shares of stock of any class, (ii) the payment of any dividend
or (iii) any other increase or decrease in the number of shares of stock of any
class. Any issuance by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, shall not affect, and
no adjustment by reason thereof shall be made with respect to, the number or
Exercise Price of Shares subject to an Option. The grant of an Option pursuant
to the Plan shall not affect in any way the right or power of the Company to
make adjustments, reclassifications, reorganizations or changes of its capital
or business structure, to merge or consolidate or to dissolve, liquidate, sell
or transfer all or any part of its business or assets.

                                       6
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SECTION 9.  SECURITIES LAW REQUIREMENTS.

     Shares 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 10.    NO RETENTION RIGHTS.

     Nothing in the Plan or in any right or Option granted under the Plan shall
confer upon the Purchaser or Optionee any right to continue in Service for any
period of specific duration or interfere with or otherwise restrict in any way
the rights of the Company (or any Parent or Subsidiary employing or retaining
the Purchaser or Optionee) or of the Purchaser or Optionee, which rights are
hereby expressly reserved by each, to terminate his or her Service at any time
and for any reason, with or without cause.

SECTION 11.    DURATION AND AMENDMENTS.

     (a)  Term of the Plan.  The Plan, as set forth herein, shall become
effective on the date of its adoption by the Board of Directors, subject to the
approval of the Company's stockholders. In the event that the stockholders fail
to approve the Plan within 12 months after its adoption by the Board of
Directors, any grants of Options or sales or awards of Shares that have already
occurred shall be rescinded, and no additional grants, sales or awards shall be
made thereafter under the Plan. The Plan shall terminate automatically 10 years
after its adoption by the Board of Directors and may be terminated on any
earlier date pursuant to Subsection (b) below.

     (b)  Right to Amend or Terminate the Plan.  The Board of Directors may
amend, suspend or terminate the Plan at any time and for any reason; provided,
however, that any amendment of the Plan which increases the number of Shares
available for issuance under the Plan (except as provided in Section 8), or
which materially changes the class of persons who are eligible for the grant of
ISOs, shall be subject to the approval of the Company's stockholders.
Stockholder approval shall not be required for any other amendment of the Plan.

     (c)  Effect of Amendment or Termination.  No Shares shall be issued or sold
under the Plan after the termination thereof, except upon exercise of an Option
granted prior to such termination.  The termination of the Plan, or any
amendment thereof, shall not affect any Share previously issued or any Option
previously granted under the Plan.

SECTION 12.   DEFINITIONS.

     (a)  "Board of Directors" shall mean the Board of Directors of the Company,
as constituted from time to time.

                                       7
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     (b)  "Change in Control" shall mean:

          (i)  The consummation of a merger or consolidation of the Company with
     or into another entity or any other corporate reorganization, if more than
     50% of the combined voting power of the continuing or surviving entity's
     securities outstanding immediately after such merger, consolidation or
     other reorganization is owned by persons who were not stockholders of the
     Company immediately prior to such merger, consolidation or other
     reorganization; or

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

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.

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

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

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

     (f)  "Consultant" shall mean a person who performs bona fide services for
the Company, a Parent or a Subsidiary as a consultant or advisor, excluding
Employees and Outside Directors.

     (g)  "Employee" shall mean any individual who is a common-law employee of
the Company, a Parent or a Subsidiary.

     (h)  "Exercise Price" shall mean the amount for which one Share may be
purchased upon exercise of an Option, as specified by the Board of Directors in
the applicable Stock Option Agreement.

     (i)  "Fair Market Value" shall mean the fair market value of a Share, as
determined by the Board of Directors in good faith. Such determination shall be
conclusive and binding on all persons.

     (j)  "ISO" shall mean an employee incentive stock option described in
Section 422(b) of the Code.

     (k)  "Nonstatutory Option" shall mean a stock option not described in
Sections 422(b) or 423(b) of the Code.

     (l)  "Option" shall mean an ISO or Nonstatutory Option granted under the
Plan and entitling the holder to purchase Shares.

                                       8
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     (m)  "Optionee" shall mean an individual who holds an Option.

     (n)  "Outside Director" shall mean a member of the Board of Directors who
is not an Employee.

     (o)  "Parent" shall mean 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.

     (p)  "Plan" shall mean this Chorum Technologies Inc. 1997 Stock Plan.

     (q)  "Purchase Price" shall mean the consideration for which one Share may
be acquired under the Plan (other than upon exercise of an Option), as specified
by the Board of Directors.

     (r)  "Purchaser" shall mean an individual to whom the Board of Directors
has offered the right to acquire Shares under the Plan (other than upon exercise
of an Option).

     (s)  "Service" shall mean service as an Employee, Outside Director or
Consultant.

     (t)  "Share" shall mean one share of Stock, as adjusted in accordance with
Section 8 (if applicable).

     (u)  "Stock" shall mean the Common Stock of the Company, with a par value
of $0.0001 per Share.

     (v)  "Stock Option Agreement" shall mean the agreement between the Company
and an Optionee which contains the terms, conditions and restrictions pertaining
to the Optionee's Option.

     (w)  "Stock Purchase Agreement" shall mean the agreement between the
Company and a Purchaser who acquires Shares under the Plan which contains the
terms, conditions and restrictions pertaining to the acquisition of such Shares.

     (x)  "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.

                                       9<PAGE>

                                 EXHIBIT 10.3

                           Chorum Technologies, Inc.

                          2000 EQUITY INCENTIVE PLAN

                         (AS ADOPTED OCTOBER 11, 2000)
<PAGE>

                               TABLE OF CONTENTS
<TABLE>
                                                                        Page
<S>                                                                     <C>
ARTICLE I. INTRODUCTION.................................................   1

ARTICLE II. ADMINISTRATION..............................................   1
     2.1  Committee Composition.........................................   1
     2.2  Committee Responsibilities....................................   1
     2.3  Committee for Non-Officer Grants..............................   1

ARTICLE III. SHARES AVAILABLE FOR GRANTS................................   2
     3.1  Basic Limitation..............................................   2
     3.2  Annual Increase in Shares.....................................   2
     3.3  Additional Shares.............................................   2
     3.4  Dividend Equivalents..........................................   2

ARTICLE IV. ELIGIBILITY.................................................   2
     4.1  Incentive Stock Options.......................................   2
     4.2  Other Grants..................................................   3

ARTICLE V. OPTIONS......................................................   3
     5.1  Stock Option Agreement........................................   3
     5.2  Number of Shares..............................................   3
     5.3  Exercise Price................................................   3
     5.4  Effect of Change in Control...................................   3
     5.5  Exercisability and Term.......................................   3
     5.6  Modification or Assumption of Options.........................   4
     5.7  Buyout Provisions.............................................   4

ARTICLE VI. PAYMENT FOR OPTION SHARES...................................   4
     6.1  General Rule..................................................   4
     6.2  Surrender of Stock............................................   4
     6.3  Exercise/Sale.................................................   4
     6.4  Exercise/Pledge...............................................   4
     6.5  Promissory Note...............................................   5
     6.6  Other Forms of Payment........................................   5

ARTICLE VII. STOCK APPRECIATION RIGHTS..................................   5
     7.1  SAR Agreement.................................................   5
     7.2  Number of Shares..............................................   5
     7.3  Exercise Price................................................   5
     7.4  Exercisability and Term.......................................   5
     7.5  Effect of Change in Control...................................   5
     7.6  Exercise of SARs..............................................   6
     7.7  Modification or Assumption of SARs............................   6
</TABLE>

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<TABLE>
<S>                                                                       <C>
ARTICLE VIII. RESTRICTED SHARES.........................................   6
     8.1  Restricted Stock Agreement....................................   6
     8.2  Payment for Awards............................................   6
     8.3  Vesting Conditions............................................   6
     8.4  Voting and Dividend Rights....................................   7

ARTICLE IX. STOCK UNITS.................................................   7
     9.1  Stock Unit Agreement..........................................   7
     9.2  Payment for Awards............................................   7
     9.3  Vesting Conditions............................................   7
     9.4  Voting and Dividend Rights....................................   7
     9.5  Form and Time of Settlement of Stock Units....................   7
     9.6  Death of Recipient............................................   8
     9.7  Creditors' Rights.............................................   8

ARTICLE X. PROTECTION AGAINST DILUTION..................................   8
     10.1 Adjustments...................................................   8
     10.2 Dissolution or Liquidation....................................   9
     10.3 Reorganizations...............................................   9

ARTICLE XI. DEFERRAL OF AWARDS.........................................    9

ARTICLE XII. AWARDS UNDER OTHER PLANS..................................    9

ARTICLE XIII.  PAYMENT OF FEES IN SECURITIES............................. 10
     13.1 Effective Date................................................  10
     13.2 Elections to Receive NSOs, Restricted Shares or Stock Units...  10
     13.3 Number and Terms of NSOs, Restricted Shares or Stock Units....  10

ARTICLE XIV. LIMITATION ON RIGHTS.......................................  10
     14.1 Retention Rights..............................................  10
     14.2 Stockholders' Rights..........................................  10
     14.3 Regulatory Requirements.......................................  10

ARTICLE XV. WITHHOLDING TAXES...........................................  11
     15.1 General.......................................................  11
     15.2 Share Withholding.............................................  11

ARTICLE XVI. FUTURE OF THE PLAN.........................................  11
     16.1 Term of the Plan..............................................  11
     16.2 Amendment or Termination......................................  11

ARTICLE XVII.  LIMITATION ON PAYMENTS...................................  11
     17.1 Scope of Limitation...........................................  11
     17.2 Application to Award..........................................  12
     17.3 Basic Rule....................................................  12
     17.4 Reduction of Payments.........................................  12
     17.5 Overpayments and Underpayments................................  12
</TABLE>

                                      ii
<PAGE>

<TABLE>
<S>                                                                       <C>
     17.6 Related Corporations..........................................  12

ARTICLE XVIII.  DEFINITIONS.............................................  12
</TABLE>

                                      iii
<PAGE>

                           Chorum Technologies, Inc.
                          2000 Equity Incentive Plan

ARTICLE I. INTRODUCTION.

          The Plan was adopted by the Board to be effective at 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 Employees, Outside Directors
and Consultants to focus on critical long-range objectives, (b) encouraging the
attraction and retention of Employees, Outside Directors and Consultants with
exceptional qualifications, and (c) linking Employees, Outside Directors and
Consultants directly to stockholder interests through increased stock ownership.
The Plan seeks to achieve this purpose by providing for Awards in the form of
Restricted Shares, Stock Units, Options (which may constitute incentive stock
options or nonstatutory stock options) or stock appreciation rights.

          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 II. ADMINISTRATION.

          2.1  Committee Composition. The Plan shall be administered by the
Committee. 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:

               (a)  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; and

               (b)  Such requirements as the Internal Revenue Service may
establish for outside directors acting under plans intended to qualify for
exemption under section 162(m)(4)(C) of the Code.

          2.2  Committee Responsibilities.  The Committee shall (a) select the
Employees, Outside Directors and Consultants who are to receive Awards under the
Plan, (b) determine the type, number, vesting requirements and other features
and conditions of such Awards, (c) interpret the Plan and (d) make all other
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.

          2.3  Committee for Non-Officer Grants.  The Board may also appoint a
secondary committee of the Board, which shall be composed of one or more
directors of the Company who need not satisfy the requirements of Section 2.1.
Such secondary committee may administer the Plan with respect to Employees and
Consultants who are not considered officers or directors of the Company under
section 16 of the Exchange Act, may grant Awards under the
<PAGE>

Plan to such Employees and Consultants and may determine all features and
conditions of such Awards. Within the limitations of this Section 2.3, any
reference in the Plan to the Committee shall include such secondary committee.

ARTICLE III. SHARES AVAILABLE FOR GRANTS.

          3.1  Basic Limitation.  Shares of Common Stock issued pursuant to the
Plan may be authorized but unissued shares or treasury shares. The aggregate
number of Options, SARs, Stock Units and Restricted Shares awarded under the
Plan shall not exceed (a) 3,900,000, (b) plus the shares remaining available for
grant under the Predecessor Plan, plus (c) the additional shares of Common Stock
described in Sections 3.2 and 3.3. The limitations of this Section 3.1 and
Section 3.2 shall be subject to adjustment pursuant to Article 11.

          3.2  Annual Increase in Shares.  As of September 30 of each year,
commencing with the year 2001 and ending on September 30, 2006, the aggregate
number of Options, SARs, Stock Units and Restricted Shares that may be awarded
under the Plan shall automatically increase by a number equal to the lesser of
5% of the total number of shares of Common Stock then outstanding, or 2,000,000
shares.

          3.3  Additional Shares.  If Restricted Shares or shares of Common
Stock issued upon the exercise of Options are forfeited, then such shares of
Common Stock shall again become available for Awards under the Plan. If Stock
Units, Options or SARs are forfeited or terminate for any other reason before
being exercised (including Options originally granted under the Predecessor
Plan), then the corresponding shares of Common Stock shall again become
available for Awards under the Plan. If Stock Units are settled, then only the
number of shares of Common Stock (if any) actually issued in settlement of such
Stock Units shall reduce the number available under Section 3.1 and the balance
shall again become available for Awards under the Plan. If SARs are exercised,
then only the number of shares of Common Stock (if any) actually issued in
settlement of such SARs shall reduce the number available under Section 3.1 and
the balance shall again become available for Awards under the Plan. The
foregoing notwithstanding, the aggregate number of shares of Common Stock that
may be issued under the Plan upon the exercise of ISOs shall not be increased
when Restricted Shares or other shares of Common Stock are forfeited.

          3.4  Dividend Equivalents.  Any dividend equivalents paid or credited
under the Plan shall not be applied against the number of Restricted Shares,
Stock Units, Options or SARs available for Awards, whether or not such dividend
equivalents are converted into Stock Units.

ARTICLE IV. ELIGIBILITY.

          4.1  Incentive Stock Options. Only Employees who are common-law
employees of the Company, a Parent or a Subsidiary shall be eligible for the
grant of ISOs. In addition, an Employee who owns more than 10% of the total
combined voting power of all classes of outstanding stock of the Company or any
of its Parents or Subsidiaries shall not be eligible for the grant of an ISO
unless the requirements set forth in section 422(c)(6) of the Code are
satisfied.

                                       2
<PAGE>

          4.2  Other Grants.  Only Employees, Outside Directors and Consultants
shall be eligible for the grant of Restricted Shares, Stock Units, NSOs or SARs.

ARTICLE V. OPTIONS.

          5.1  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. The
Stock Option Agreement shall specify whether the Option is an ISO or an NSO. The
provisions of the various Stock Option Agreements entered into under the Plan
need not be identical. Options may be granted in consideration of a reduction in
the Optionee's other compensation. A Stock Option Agreement may provide that a
new Option will be granted automatically to the Optionee when he or she
exercises a prior Option and pays the Exercise Price in the form described in
Section 6.2.

          5.2  Number of Shares.  Each Stock Option Agreement shall specify the
number of shares of Common Stock subject to the Option and shall provide for the
adjustment of such number in accordance with Article 10. Options granted to any
Optionee in a single fiscal year of the Company shall not cover more than
1,500,000 shares of Common Stock, except that Options granted to a new Employee
in the fiscal year of the Company in which his or her service as an Employee
first commences shall not cover more than 2,000,000 shares of Common Stock. The
limitations set forth in the preceding sentence shall be subject to adjustment
in accordance with Article 11.

          5.3  Exercise Price.  Each Stock Option Agreement shall specify the
Exercise Price; provided that the Exercise Price under an ISO shall in no event
be less than 100% of the Fair Market Value of a share of Common Stock on the
date of grant and the Exercise Price under an NSO shall in no event be less than
85% of the Fair Market Value of a share of Common Stock on the date of grant. In
the case of an NSO, a Stock Option Agreement may specify an Exercise Price that
varies in accordance with a predetermined formula while the NSO is outstanding.

          5.4  Effect of Change in Control.  The Committee may determine, at the
time of granting an Option or thereafter, that such Option shall become
exercisable as to all or part of the shares of Common Stock subject to such
Option in the event that a Change in Control occurs with respect to the Company
or in the event that the Optionee is subject to an Involuntary Termination after
a Change in Control.  However, in the case of an ISO, the acceleration of
exercisability shall not occur without the Optionee's written consent.  In
addition, acceleration of exercisability may be required under Section 10.3.

          5.5  Exercisability and Term.  Each Stock Option Agreement shall
specify the date or event when all or any installment of the Option is to become
exercisable. The Stock Option Agreement shall also specify the term of the
Option; provided that the term of an ISO shall in no event exceed 10 years from
the date of grant. A Stock Option Agreement may provide for accelerated
exercisability in the event of the Optionee's death, disability or retirement or
other events and may provide for expiration prior to the end of its term in the
event of the termination of the Optionee's service. Options may be awarded in
combination with

                                       3
<PAGE>

SARs, and such an Award may provide that the Options will not be exercisable
unless the related SARs are forfeited.

          5.6  Modification or Assumption of Options.  Within the limitations of
the Plan, the Committee may modify, extend or assume outstanding options or may
accept the cancellation of outstanding options (whether granted by the Company
or by another issuer) in return for the grant of new options for the same or a
different number of shares and at the same or a different exercise price. The
foregoing notwithstanding, no modification of an Option shall, without the
consent of the Optionee, alter or impair his or her rights or obligations under
such Option.

          5.7  Buyout Provisions.  The Committee may at any time (a) offer to
buy out for a payment in cash or cash equivalents an Option previously granted
or (b) authorize an Optionee to elect to cash out an Option previously granted,
in either case at such time and based upon such terms and conditions as the
Committee shall establish.

ARTICLE VI. PAYMENT FOR OPTION SHARES.

          6.1  General Rule.  The entire Exercise Price of shares of Common
Stock issued upon exercise of Options shall be payable in cash or cash
equivalents at the time when such shares of Common Stock are purchased, except
as follows:

               (a)  In the case of an ISO granted under the Plan, payment shall
be made only pursuant to the express provisions of the applicable Stock Option
Agreement. The Stock Option Agreement may specify that payment may be made in
any form(s) described in this Article 6.

               (b)  In the case of an NSO, the Committee may at any time accept
payment in any form(s) described in this Article 6.

          6.2  Surrender of Stock.  To the extent that this Section 6.2 is
applicable, all or any part of the Exercise Price may be paid by surrendering,
or attesting to the ownership of, shares of Common Stock that are already owned
by the Optionee. Such shares of Common Stock shall be valued at their Fair
Market Value on the date when the new shares of Common Stock are purchased under
the Plan. The Optionee shall not surrender, or attest to the ownership of,
shares of Common Stock 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.

          6.3  Exercise/Sale.  To the extent that this Section 6.3 is
applicable, 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 shares of Common Stock being purchased under the Plan and to deliver all or
part of the sales proceeds to the Company.

          6.4  Exercise/Pledge.  To the extent that this Section 6.4 is
applicable, 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 pledge all or part of the shares of

                                       4
<PAGE>

Common Stock being purchased under the Plan to a securities broker or lender
approved by the Company, as security for a loan, and to deliver all or part of
the loan proceeds to the Company.

          6.5  Promissory Note.  To the extent that this Section 6.5 is
applicable, all or any part of the Exercise Price and any withholding taxes may
be paid by delivering (on a form prescribed by the Company) a full-recourse
promissory note. However, the par value of the shares of Common Stock being
purchased under the Plan, if newly issued, shall be paid in cash or cash
equivalents.

          6.6  Other Forms of Payment.  To the extent that this Section 6.6 is
applicable, 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 VII. STOCK APPRECIATION RIGHTS.

          7.1  SAR Agreement.  Each grant of an SAR under the Plan shall be
evidenced by an SAR Agreement between the Optionee and the Company. Such SAR
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. The provisions of the
various SAR Agreements entered into under the Plan need not be identical. SARs
may be granted in consideration of a reduction in the Optionee's other
compensation.

          7.2  Number of Shares.  Each SAR Agreement shall specify the number of
shares of Common Stock to which the SAR pertains and shall provide for the
adjustment of such number in accordance with Article 11. SARs granted to any
Optionee in a single calendar year shall in no event pertain to more than
1,500,000 shares of Common Stock, except that SARs granted to a new Employee in
the fiscal year of the Company in which his or her service as an Employee first
commences shall not pertain to more than 2,000,000 shares of Common Stock. The
limitations set forth in the preceding sentence shall be subject to adjustment
in accordance with Article 11.

          7.3  Exercise Price.  Each SAR Agreement shall specify the Exercise
Price. An SAR Agreement may specify an Exercise Price that varies in accordance
with a predetermined formula while the SAR is outstanding.

          7.4  Exercisability and Term.  Each SAR Agreement shall specify the
date when all or any installment of the SAR is to become exercisable. The SAR
Agreement shall also specify the term of the SAR. An SAR Agreement may provide
for accelerated exercisability in the event of the Optionee's death, disability
or retirement or other events and may provide for expiration prior to the end of
its term in the event of the termination of the Optionee's service. SARs may be
awarded in combination with Options, and such an Award may provide that the SARs
will not be exercisable unless the related Options are forfeited. An SAR may be
included in an ISO only at the time of grant but may be included in an NSO at
the time of grant or thereafter. An SAR granted under the Plan may provide that
it will be exercisable only in the event of a Change in Control.

          7.5  Effect of Change in Control.  The Committee may determine, at the
time of granting an SAR or thereafter, that such SAR shall become fully
exercisable as to all shares of

                                       5
<PAGE>

Common Stock subject to such SAR in the event that the Company is subject to a
Change in Control or in the event that the Optionee is subject to an Involuntary
Termination after a Change in Control. In addition, acceleration of
exercisability may be required under Section 10.3.

          7.6  Exercise of SARs.  Upon exercise of an SAR, the Optionee (or any
person having the right to exercise the SAR after his or her death) shall
receive from the Company (a) shares of Common Stock, (b) cash or (c) a
combination of shares of Common Stock and cash, as the Committee shall
determine.  The amount of cash and/or the Fair Market Value of shares of Common
Stock received upon exercise of SARs shall, in the aggregate, be equal to the
amount by which the Fair Market Value (on the date of surrender) of the shares
of Common Stock subject to the SARs exceeds the Exercise Price.  If, on the date
when an SAR expires, the Exercise Price under such SAR is less than the Fair
Market Value on such date but any portion of such SAR has not been exercised or
surrendered, then such SAR shall automatically be deemed to be exercised as of
such date with respect to such portion.

          7.7  Modification or Assumption of SARs.  Within the limitations of
the Plan, the Committee may modify, extend or assume outstanding SARs or may
accept the cancellation of outstanding SARs (whether granted by the Company or
by another issuer) in return for the grant of new SARs for the same or a
different number of shares and at the same or a different exercise price. The
foregoing notwithstanding, no modification of an SAR shall, without the consent
of the Optionee, alter or impair his or her rights or obligations under such
SAR.

ARTICLE VIII. RESTRICTED SHARES.

          8.1  Restricted Stock Agreement.  Each grant of Restricted Shares
under the Plan shall be evidenced by a Restricted Stock Agreement between the
recipient and the Company. Such Restricted Shares 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. The provisions of the various Restricted Stock
Agreements entered into under the Plan need not be identical.

          8.2  Payment for Awards.  Subject to the following sentence,
Restricted Shares may be sold or awarded under the Plan for such consideration
as the Committee may determine, including (without limitation) cash, cash
equivalents, full-recourse promissory notes, past services and future services.
To the extent that an Award consists of newly issued Restricted Shares, the
consideration shall consist exclusively of cash, cash equivalents or past
services rendered to the Company (or a Parent or Subsidiary) or, for the amount
in excess of the par value of such newly issued Restricted Shares, full-recourse
promissory notes, as the Committee may determine.

          8.3  Vesting Conditions.  Each Award of Restricted Shares may or may
not be subject to vesting. Vesting shall occur, in full or in installments, upon
satisfaction of the conditions specified in the Restricted Stock Agreement. A
Restricted Stock Agreement may provide for accelerated vesting in the event of
the Participant's death, disability or retirement or other events. The Committee
may determine, at the time of granting Restricted Shares or thereafter, that all
or part of such Restricted Shares shall become vested in the event that a

                                       6
<PAGE>

Change in Control occurs with respect to the Company or in the event that the
Participant is subject to an Involuntary Termination after a Change in Control.

          8.4  Voting and Dividend Rights.  The holders of Restricted Shares
awarded under the Plan shall have the same voting, dividend and other rights as
the Company's other stockholders. A Restricted Stock Agreement, however, may
require that the holders of Restricted Shares invest any cash dividends received
in additional Restricted Shares. Such additional Restricted Shares shall be
subject to the same conditions and restrictions as the Award with respect to
which the dividends were paid.

ARTICLE IX. STOCK UNITS.

          9.1  Stock Unit Agreement.  Each grant of Stock Units under the Plan
shall be evidenced by a Stock Unit Agreement between the recipient and the
Company. Such Stock Units 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.
The provisions of the various Stock Unit Agreements entered into under the Plan
need not be identical. Stock Units may be granted in consideration of a
reduction in the recipient's other compensation.

          9.2  Payment for Awards.  To the extent that an Award is granted in
the form of Stock Units, no cash consideration shall be required of the Award
recipients.

          9.3  Vesting Conditions.  Each Award of Stock Units may or may not be
subject to vesting. Vesting shall occur, in full or in installments, upon
satisfaction of the conditions specified in the Stock Unit Agreement. A Stock
Unit Agreement may provide for accelerated vesting in the event of the
Participant's death, disability or retirement or other events. The Committee may
determine, at the time of granting Stock Units or thereafter, that all or part
of such Stock Units shall become vested in the event that the Company is subject
to a Change in Control or in the event that the Participant is subject to an
Involuntary Termination after a Change in Control. In addition, acceleration of
vesting may be required under Section 10.3.

          9.4  Voting and Dividend Rights.  The holders of Stock Units shall
have no voting rights. Prior to settlement or forfeiture, any Stock Unit awarded
under the Plan may, at the Committee's discretion, carry with it a right to
dividend equivalents. Such right entitles the holder to be credited with an
amount equal to all cash dividends paid on one share of Common Stock while the
Stock Unit is outstanding. Dividend equivalents may be converted into additional
Stock Units. Settlement of dividend equivalents may be made in the form of cash,
in the form of shares of Common Stock, or in a combination of both. Prior to
distribution, any dividend equivalents which are not paid shall be subject to
the same conditions and restrictions as the Stock Units to which they attach.

          9.5  Form and Time of Settlement of Stock Units.  Settlement of vested
Stock Units may be made in the form of (a) cash, (b) shares of Common Stock or
(c) any combination of both, as determined by the Committee. The actual number
of Stock Units eligible for settlement may be larger or smaller than the number
included in the original Award, based on predetermined performance factors.
Methods of converting Stock Units into cash may include (without limitation) a
method based on the average Fair Market Value of shares of

                                       7
<PAGE>

Common Stock over a series of trading days. Vested Stock Units may be settled in
a lump sum or in installments. The distribution may occur or commence when all
vesting conditions applicable to the Stock Units have been satisfied or have
lapsed, or it may be deferred to any later date. The amount of a deferred
distribution may be increased by an interest factor or by dividend equivalents.
Until an Award of Stock Units is settled, the number of such Stock Units shall
be subject to adjustment pursuant to Article 11.

          9.6  Death of Recipient.  Any Stock Units Award that becomes payable
after the recipient's death shall be distributed to the recipient's beneficiary
or beneficiaries. Each recipient of a Stock Units Award under the Plan shall
designate one or more beneficiaries for this purpose by filing the prescribed
form with the Company. A beneficiary designation may be changed by filing the
prescribed form with the Company at any time before the Award recipient's death.
If no beneficiary was designated or if no designated beneficiary survives the
Award recipient, then any Stock Units Award that becomes payable after the
recipient's death shall be distributed to the recipient's estate.

          9.7  Creditors' Rights.  A holder of Stock Units shall have no rights
other than those of a general creditor of the Company. Stock Units represent an
unfunded and unsecured obligation of the Company, subject to the terms and
conditions of the applicable Stock Unit Agreement.

ARTICLE X. PROTECTION AGAINST DILUTION.

          10.1 Adjustments.  In the event of a subdivision of the outstanding
shares of Common Stock, a declaration of a dividend payable in shares of Common
Stock, a declaration of a dividend payable in a form other than shares of Common
Stock in an amount that has a material affect on the price of shares of Common
Stock, a combination or consolidation of the outstanding shares of Common Stock
(by reclassification or otherwise) into a lesser number of shares of Common
Stock, 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 Options, SARs, Restricted Shares and Stock
Units available for future Awards under Article 3, including the number and/or
class of securities by which the share reserve is to increase automatically each
year;

               (b)  The limitations set forth in Sections 5.2 and 7.2;

               (c)  The number of shares of Common Stock covered by each
outstanding Option and SAR;

               (d)  The Exercise Price under each outstanding Option and SAR; or

               (e)  The number of Stock Units included in any prior Award which
has not yet been settled.

Except as provided in this Article 11, a Participant 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.

                                       8
<PAGE>

          10.2 Dissolution or Liquidation.  To the extent not previously
exercised or settled, Options, SARs and Stock Units shall terminate immediately
prior to the dissolution or liquidation of the Company.

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

ARTICLE XI. DEFERRAL OF AWARDS.

          The Committee (in its sole discretion) may permit or require a
Participant to:

               (a)  Have cash that otherwise would be paid to such Participant
as a result of the exercise of an SAR or the settlement of Stock Units credited
to a deferred compensation account established for such Participant by the
Committee as an entry on the Company's books;

               (b)  Have shares of Common Stock that otherwise would be
delivered to such Participant as a result of the exercise of an Option or SAR
converted into an equal number of Stock Units; or

               (c)  Have shares of Common Stock that otherwise would be
delivered to such Participant as a result of the exercise of an Option or SAR or
the settlement of Stock Units converted into amounts credited to a deferred
compensation account established for such Participant by the Committee as an
entry on the Company's books. Such amounts shall be determined by reference to
the Fair Market Value of such shares of Common Stock as of the date when they
otherwise would have been delivered to such Participant.

A deferred compensation account established under this Article 12 may be
credited with interest or other forms of investment return, as determined by the
Committee.  A Participant for whom such an account is established shall have no
rights other than those of a general creditor of the Company.  Such an account
shall represent an unfunded and unsecured obligation of the Company and shall be
subject to the terms and conditions of the applicable agreement between such
Participant and the Company.  If the deferral or conversion of Awards is
permitted or required, the Committee (in its sole discretion) may establish
rules, procedures and forms pertaining to such Awards, including (without
limitation) the settlement of deferred compensation accounts established under
this Article 12.

ARTICLE XII. AWARDS UNDER OTHER PLANS.

          The Company may grant awards under other plans or programs.  Such
awards may be settled in the form of shares of Common Stock issued under this
Plan.  Such shares of

                                       9
<PAGE>

Common Stock shall be treated for all purposes under the Plan like shares of
Common Stock issued in settlement of Stock Units and shall, when issued, reduce
the number of shares of Common Stock available under Article 3.

ARTICLE XIII. PAYMENT OF FEES IN SECURITIES.

          13.1 Effective Date.  No provision of this Article 14 shall be
effective unless and until the Board has determined to implement such provision.

          13.2 Elections to Receive NSOs, Restricted Shares or Stock Units.
An Outside Director may elect to receive his or her annual retainer payments or
meeting fees from the Company in the form of cash, NSOs, Restricted Shares or
Stock Units, or a combination thereof, as determined by the Board. Such NSOs,
Restricted Shares and Stock Units shall be issued under the Plan. An election
under this Article 14 shall be filed with the Company on the prescribed form.

          13.3 Number and Terms of NSOs, Restricted Shares or Stock Units.
The number of NSOs, Restricted Shares or Stock Units to be granted to Outside
Directors in lieu of annual retainers or meeting fees that would otherwise be
paid in cash shall be calculated in a manner determined by the Board. The Board
shall also determine the terms of such NSOs, Restricted Shares or Stock Units.

ARTICLE XIV.  LIMITATION ON RIGHTS.

          14.1 Retention Rights.  Neither the Plan nor any Award granted under
the Plan shall be deemed to give any individual a right to remain an Employee,
Outside Director or Consultant. The Company and its Parents, Subsidiaries and
Affiliates reserve the right to terminate the service of any Employee, Outside
Director or Consultant at any time, with or without cause, subject to applicable
laws, the Company's certificate of incorporation and by-laws and a written
employment agreement (if any).

          14.2 Stockholders' Rights.  A Participant shall have no dividend
rights, voting rights or other rights as a stockholder with respect to any
shares of Common Stock covered by his or her Award prior to the time when a
stock certificate for such shares of Common Stock is issued or, if applicable,
the time when he or she becomes entitled to receive such shares of Common Stock
by filing any required notice of exercise and paying any required 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.

          14.3 Regulatory Requirements.  Any other provision of the Plan
notwithstanding, the obligation of the Company to issue shares of Common Stock
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 shares of
Common Stock pursuant to any Award prior to the satisfaction of all legal
requirements relating to the issuance of such shares of Common Stock, to their
registration, qualification or listing or to an exemption from registration,
qualification or listing.

                                      10
<PAGE>

ARTICLE XV.  WITHHOLDING TAXES.

          15.1 General.  To the extent required by applicable federal, state,
local or foreign law, a Participant 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 shares of Common Stock or make any cash payment under the
Plan until such obligations are satisfied.

          15.2 Share Withholding.  The Committee may permit a Participant to
satisfy all or part of his or her withholding or income tax obligations by
having the Company withhold all or a portion of any shares of Common Stock that
otherwise would be issued to him or her or by surrendering all or a portion of
any shares of Common Stock that he or she previously acquired. Such shares of
Common Stock shall be valued at their Fair Market Value on the date when taxes
otherwise would be withheld in cash.

ARTICLE XVI. FUTURE OF THE PLAN.

          16.1 Term of the Plan.  The Plan, as set forth herein, shall become
effective the date of effectiveness of the IPO. The Plan shall remain in effect
until it is terminated under Section 17.2, except that no ISOs shall be granted
on or after the 10/th/ anniversary of the later of (a) the date when the Board
adopted the Plan or (b) the date when the Board adopted the most recent increase
in the number of shares of Common Stock available under Article 3 which was
approved by the Company's stockholders. The Plan shall serve as the successor to
the Predecessor Plan, and no further option grants shall be made under the
Predecessor Plan after the Plan effective date. All options outstanding under
the Predecessor Plan as of such date shall, immediately upon effectiveness of
the Plan, remain outstanding in accordance with their terms. Each outstanding
option under the Predecessor Plan shall continue to be governed solely by the
terms of the documents evidencing such option, and no provision of the Plan
shall be deemed to affect or otherwise modify the rights or obligations of the
holders of such incorporated options with respect to their acquisition of shares
of Common Stock, except that the vesting acceleration provisions of Article 10
relating to Change in Control shall be extended to the options incorporated from
the Predecessor Plan.

          16.2 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 Awards shall be granted under the Plan
after the termination thereof. The termination of the Plan, or any amendment
thereof, shall not affect any Award previously granted under the Plan.

ARTICLE XVII. LIMITATION ON PAYMENTS.

          17.1 Scope of Limitation.  This Article 18 shall apply to an Award
only if:

               (a)  The independent auditors most recently selected by the Board
(the "Auditors") determine that the after-tax value of such Award to the
Participant, taking into account the effect of all federal, state and local
income taxes, employment taxes and excise taxes applicable to the Participant
(including the excise tax under section 4999 of the Code), will be

                                      11
<PAGE>

greater after the application of this Article 18 than it was before the
application of this Article 18; or

               (b)  The Committee, at the time of making an Award under the Plan
or at any time thereafter, specifies in writing that such Award shall be subject
to this Article 18 (regardless of the after-tax value of such Award to the
Participant).

          17.2 Application to Award.  If this Article 18 applies to an Award, it
shall supersede any contrary provision of the Plan or of any Award granted under
the Plan.

          17.3 Basic Rule.  In the event that the Auditors determine that any
payment or transfer by the Company under the Plan to or for the benefit of a
Participant (a "Payment") would be nondeductible by the Company for federal
income tax purposes because of the provisions concerning "excess parachute
payments" in section 280G of the Code, then the aggregate present value of all
Payments shall be reduced (but not below zero) to the Reduced Amount. For
purposes of this Article 18, the "Reduced Amount" shall be the amount, expressed
as a present value, which maximizes the aggregate present value of the Payments
without causing any Payment to be nondeductible by the Company because of
section 280G of the Code.

          17.4 Reduction of Payments.  If the Auditors determine that any
Payment would be nondeductible by the Company because of section 280G of the
Code, then the Company shall promptly give the Participant notice to that effect
and a copy of the detailed calculation thereof and of the Reduced Amount, and
the Participant may then elect, in his or her sole discretion, which and how
much of the Payments shall be eliminated or reduced (as long as after such
election the aggregate present value of the Payments equals the Reduced Amount)
and shall advise the Company in writing of his or her election within 10 days of
receipt of notice. If no such election is made by the Participant within such
10-day period, then the Company may elect which and how much of the Payments
shall be eliminated or reduced (as long as after such election the aggregate
present value of the Payments equals the Reduced Amount) and shall notify the
Participant promptly of such election. For purposes of this Article 18, present
value shall be determined in accordance with section 280G(d)(4) of the Code. All
determinations made by the Auditors under this Article 18 shall be binding upon
the Company and the Participant and shall be made within 60 days of the date
when a Payment becomes payable or transferable. As promptly as practicable
following such determination and the elections hereunder, the Company shall pay
or transfer to or for the benefit of the Participant such amounts as are then
due to him or her under the Plan and shall promptly pay or transfer to or for
the benefit of the Participant in the future such amounts as become due to him
or her under the Plan.

          17.5 Overpayments and Underpayments.  As a result of uncertainty in
the application of section 280G of the Code at the time of an initial
determination by the Auditors hereunder, it is possible that Payments will have
been made by the Company which should not have been made (an "Overpayment") or
that additional Payments which will not have been made by the Company could have
been made (an "Underpayment"), consistent in each case with the calculation of
the Reduced Amount hereunder. In the event that the Auditors, based upon the
assertion of a deficiency by the Internal Revenue Service against the Company or
the Participant which the Auditors believe has a high probability of success,
determine that an Overpayment has been made, such Overpayment shall be treated
for all purposes as a loan to the Participant which

                                      12
<PAGE>

he or she shall repay to the Company, together with interest at the applicable
federal rate provided in section 7872(f)(2) of the Code; provided, however, that
no amount shall be payable by the Participant to the Company if and to the
extent that such payment would not reduce the amount which is subject to
taxation under section 4999 of the Code. In the event that the Auditors
determine that an Underpayment has occurred, such Underpayment shall promptly be
paid or transferred by the Company to or for the benefit of the Participant,
together with interest at the applicable federal rate provided in section
7872(f)(2) of the Code.

          17.6 Related Corporations.  For purposes of this Article 18, the term
"Company" shall include affiliated corporations to the extent determined by the
Auditors in accordance with section 280G(d)(5) of the Code.

ARTICLE XVIII. DEFINITIONS.

          18.1 "Affiliate" means any entity other than a Subsidiary, if the
Company and/or one or more Subsidiaries own not less than 50% of such entity.

          18.2 "Award" means any award of an Option, an SAR, a Restricted Share
or a Stock Unit under the Plan.

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

          18.4 "Change in Control" shall mean:

               (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 Paragraph (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

                                      13
<PAGE>

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.

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

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

          18.7   "Common Stock" means the common stock of the Company.

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

          18.9   "Consultant" means a consultant or adviser who provides bona
fide services to the Company, a Parent, a Subsidiary or an Affiliate as an
independent contractor. Service as a Consultant shall be considered employment
for all purposes of the Plan, except as provided in Section 4.1.

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

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

          18.12  "Exercise Price," in the case of an Option, means the amount
for which one share of Common Stock may be purchased upon exercise of such
Option, as specified in the applicable Stock Option Agreement. "Exercise Price,"
in the case of an SAR, means an amount, as specified in the applicable SAR
Agreement, which is subtracted from the Fair Market Value of one share of Common
Stock in determining the amount payable upon exercise of such SAR.

          18.13  "Fair Market Value" means the market price of one share of
Common Stock, 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.

          18.14  "Involuntary Termination" means the termination of the Service
of any individual which occurs by reason of:

                 (a)  such individual's involuntary dismissal or discharge by
the Company for reasons other than Misconduct, or

                 (b)  such individual's voluntary resignation following (A) a
change in his or her position with the Company which materially reduces his or
her level of responsibility,

                                      14
<PAGE>

(B) a reduction in his or her level of compensation (including base salary,
fringe benefits and participation in bonus or incentive programs) or (C) a
relocation of such individual's place of employment by more than fifty (50)
miles, provided and only if such change, reduction or relocation is effected by
the Company without the individual's consent.

          18.15  "ISO" means an incentive stock option described in section
422(b) of the Code.

          18.16  "Misconduct" means the commission of any act of fraud,
embezzlement or dishonesty by the Optionee or Participant, any unauthorized use
or disclosure by such person of confidential information or trade secrets of the
Company (or any Parent or Subsidiary), or any other intentional misconduct by
such person adversely affecting the business or affairs of the Company (or any
Parent or Subsidiary) in a material manner. The foregoing definition shall not
be deemed to be inclusive of all the acts or omissions which the Company (or any
Parent or Subsidiary) may consider as grounds for the dismissal or discharge of
any Optionee or Participant or other person in the Service of the Company (or
any Parent or Subsidiary).

          18.17  "NSO" means a stock option not described in sections 422 or 423
of the Code.

          18.18  "Option" means an ISO or NSO granted under the Plan and
entitling the holder to purchase shares of Common Stock.

          18.19  "Optionee" means an individual or estate who holds an Option or
SAR.

          18.20  "Outside Director" shall mean a member of the Board who is not
an Employee. Service as an Outside Director shall be considered employment for
all purposes of the Plan, except as provided in Section 4.1.

          18.21  "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.

          18.22  "Participant" means an individual or estate who holds an Award.

          18.23  "Plan" means this Chorum Technologies, Inc. 2000 Equity
Incentive Plan, as amended from time to time.

          18.24  "Predecessor Plan" means the Company's existing 1997 Stock
Plan.

          18.25  "Restricted Share" means a share of Common Stock awarded under
the Plan.

                                      15
<PAGE>

          18.26  "Restricted Stock Agreement" means the agreement between the
Company and the recipient of a Restricted Share which contains the terms,
conditions and restrictions pertaining to such Restricted Share.

          18.27  "SAR" means a stock appreciation right granted under the Plan.

          18.28  "SAR Agreement" means the agreement between the Company and an
Optionee which contains the terms, conditions and restrictions pertaining to his
or her SAR.

          18.29  "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.

          18.30  "Stock Unit" means a bookkeeping entry representing the
equivalent of one share of Common Stock, as awarded under the Plan.

          18.31  "Stock Unit Agreement" means the agreement between the Company
and the recipient of a Stock Unit which contains the terms, conditions and
restrictions pertaining to such Stock Unit.

          18.32  "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.

                                      16

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