Document:

exv10w2

Exhibit 10.2

CIENA CORPORATION

2010 INDUCMENT EQUITY AWARD PLAN

RESTRICTED STOCK UNIT AGREEMENT

     Ciena Corporation, a Delaware corporation, (the “Company”), hereby grants restricted stock
units relating to shares of its common stock, $.01 par value, (the “Stock”), to the individual
named below as the Grantee, subject to the vesting conditions set forth in this Agreement. This
grant is subject to the terms and conditions set forth in (i) this Agreement, including any
appendix attached hereto (as may be applicable for non-U.S. employees), (ii) the 2010 Inducement
Equity Award Plan (the “Plan”) and (iii) the grant details for this award contained in your account
with the Company’s selected broker (the “Grant Notice”). Capitalized terms not defined in this
Agreement are defined in the Plan, and have the meaning set forth in the Plan.

Grant Date:                          ,      

Grant Number:                                         

Name of Grantee:                                                             

Grantee’s Employee Identification Number:                                         

Number of Restricted Stock Units Covered by Grant:                     

Vesting Start Date (if other than Grant Date):                                         

Vesting Schedule:

By accepting this grant (whether by signing this Agreement or accepting the grant electronically
via the website of the Company’s selected broker), you agree to the terms and conditions in this
Agreement and in the Plan and agree that the Plan will control in the event any provision of this
Agreement should appear to be inconsistent.

	 	 	 	 	 
	Holder:
	 	 	 	 
	 

	 	 

(Signature)
	 	 
	 
	 	 	 	 
	Ciena Corporation:

	 	 	 	 
	 

	 	 	 	 
	 

	 	By: David M. Rothenstein	 	 
	 

	 	Senior Vice President and Secretary	 	 

 

 

CIENA CORPORATION

2010 INDUCEMENT EQUITY AWARD PLAN

RESTRICTED STOCK UNIT AGREEMENT

	 	 	 
	Restricted Stock Unit Transferability

	 	This grant is an award of
restricted stock units in the
number of units set forth on the
first page of this Agreement,
subject to the vesting
conditions described in this
Agreement (“Stock Units”). Your
Stock Units may not be
transferred, assigned, pledged
or hypothecated, whether by
operation of law or otherwise,
nor may the Stock Units be made
subject to execution, attachment
or similar process.
	 
	 	 
	Vesting

	 	Your Stock Units will vest as
indicated on the first page of
this Agreement, provided you
remain in Service on the vesting
date and meet any applicable
vesting requirements set forth
in this Agreement. Except as
provided in this Agreement, or
in any other agreement between
you and the Company, no
additional Stock Units will vest
after your Service has
terminated.
	 
	 	 
	Share Delivery Pursuant to Vested Units;
Withholding Tax

	 	Shares underlying the vested
portion of the Stock Units will
be delivered to you by the
Company as soon as practicable
following the applicable vesting
date for those shares, but in no
event beyond 21/2 months after the
end of the calendar year in
which the shares would have been
otherwise delivered.
	 
	 	 
	 

	 	 On the vesting date (or
as soon as practicable
thereafter), a brokerage account
in your name will be credited
with Stock representing the
number of shares that vested
under this grant (the “Vesting
Shares”). If the vesting date is
not a trading day, the Stock
will be delivered on the next
trading day. The Company will
determine, in its sole
discretion, the number of the
Vesting Shares necessary to
cover the amount of any federal,
state, local, and foreign taxes
that the Company is required to
withhold or pay (on behalf of
the Company or you as holder)
with respect to the Stock Units
vesting, rounding up to the
nearest whole Share of Stock
(the “Withholding Shares”).
	 
	 	 
	 

	 	By accepting this award
of Stock Units, you irrevocably
(i) instruct the Company to
deliver the Vesting Shares to
your account; and (ii) authorize
and direct the broker, to sell,
on your behalf, the Withholding
Shares at the market price per
share at the time of such sale,
and (iii) expressly consent to

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	 	the delivery of the proceeds of
the sale of Withholding Shares
to the Company to be used to
fund the payment of any
applicable taxes (whether on
behalf of the Company or you as
holder) with respect to the
Stock Units. You further
acknowledge that this
irrevocable written instruction
is intended to constitute an
instruction pursuant to Rule
10b5-1 of the Exchange Act. The
Company shall be responsible for
the payment of any brokerage
commissions relating to the sale
of the Withholding Shares.
	 
	 	 
	 

	 	 You acknowledge that
until the first trading day
following the broker’s sale of
the Withholding Shares, you
shall not be entitled to effect
transactions in the net Vesting
Shares credited to your
brokerage account.
	 
	 	 
	 

	 	
The purchase price for the
vested Shares of Stock is deemed
paid by your prior services to
the Company.
	 
	 	 
	Forfeiture of Unvested Units

	 	Except as specifically provided
in this Agreement or as may be
provided in other agreements
between you and the Company, no
additional Stock Units will vest
after your Service has
terminated for any reason and
you will forfeit to the Company
all of the Stock Units that have
not yet vested or with respect
to which all applicable
restrictions and conditions have
not lapsed.
	 
	 	 
	Death

	 	If your Service terminates
because of your death, the Stock
Units granted under this
Agreement will automatically
vest as to the number of Stock
Units that would have vested had
you remained in Service for the
12 month period immediately
following your death.
	 
	 	 
	Disability

	 	If your Service terminates
because of your Disability, the
Stock Units granted under this
Agreement will automatically
vest as to the number of Stock
Units that would have vested had
you remained in Service for the
12 month period immediately
following your Disability.
	 
	 	 
	Termination For Cause

	 	If your Service is terminated
for Cause, then you shall
immediately forfeit all rights
to your Stock Units and this
award shall immediately
terminate.
	 
	 	 
	Leaves of Absence

	 	For purposes of this grant, your
Service does not terminate when
you go on a bona fide leave of
absence approved by the Company,
if the terms of your leave
provide for continued Service
crediting, or when continued
Service crediting is required by
applicable law. The Company will
determine, in

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	 	its sole
discretion, whether and when a
leave of absence constitutes a
termination of Service under the
Plan.
	 
	 	 
	Retention Rights

	 	Neither your Stock Units nor
this Agreement give you the
right to be retained by the
Company or any Affiliate in any
capacity and your Service may be
terminated at any time and for
any reason.
	 
	 	 
	Shareholder Rights

	 	You have no rights as a
shareholder unless and until the
Stock relating to the Stock
Units has been issued to you (or
an appropriate book entry has
been made). Except as described
in the Plan or herein, no
adjustments are made for
dividends or other rights if the
applicable record date occurs
before your Stock is issued (or
an appropriate book entry has
been made). If the Company pays
a dividend on its Stock, you
will, however, be entitled to
receive a cash payment equal to
the per-share dividend paid on
the Stock times the number of
vested Stock Units that you hold
as of the record date for the
dividend.
	 
	 	 
	Applicable Law

	 	Any suit, action or other legal
proceeding that is commenced to
resolve any matter arising under
or relating to this Agreement or
the Plan shall be commenced only
in a court in the State of
Delaware and the parties to this
Agreement consent to the
jurisdiction of such court. You
agree to waive your rights to a
jury trial for any claim or
cause of action based upon or
arising out of this Agreement or
the Plan.
	 
	 	 
	Data Privacy

	 	In order to administer the Plan,
the Company may process personal
data about you. Such data
includes the information
provided in this Agreement,
other appropriate personal and
financial data about you such as
home address and business
addresses and other contact
information, payroll information
and any other information deemed
appropriate by the Company to
facilitate the administration of
the Plan.
	 
	 	 
	 

	 	By accepting this Stock Unit
award, you consent to the
Company’s processing of such
personal data and the transfer
of such data outside the country
in which you work or are
employed, including, with
respect to non-U.S. residents,
to the United States, to
transferees who shall include
the Company and other persons
designated by the Company to
administer the Plan.
	 
	 	 
	Consent to Electronic Delivery

	 	Certain statutory materials
relating to the Plan have been
delivered to you in electronic
form. By accepting this grant,
you consent to electronic
delivery and acknowledge receipt

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	 	of these materials, including
the Plan and Plan prospectus.
	 
	 	 
	Non-U.S. Residents

	 	If you are a non-U.S. resident,
additional terms and conditions
with respect to your award may
apply as set forth on the Stock
Administration page of the
MyCiena intranet.

This Agreement is not a stock certificate or a negotiable instrument.

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APPENDIX A

TO

RESTRICTED STOCK UNIT AGREEMENT

FOR GRANTEES LOCATED OUTSIDE THE U.S

This Appendix to the Terms and Conditions for Grantees Located Outside the U.S. includes additional
terms and conditions that govern the grant Restricted Stock Units in your country. Capitalized
terms not explicitly defined in this Appendix have the definitions ascribed to them in the Plan or
the Agreement covering your Award.

This Appendix also includes information regarding exchange controls and certain other issues of
which you should be aware with respect to your participation in the Plan. Such laws are often
complex and change frequently. As a result, the Company strongly recommends that you not rely on
the information noted herein as the only source of information relating to the consequences of your
participation in the Plan because the information may be out of date at vesting of the Restricted
Stock Units or the subsequent sale of the Shares or receipt of any dividends or dividend
equivalents.

In addition, the information is general in nature and may not apply to your particular situation,
and the Company is not in a position to assure you of any particular result. Accordingly, you are
advised to seek appropriate professional advice as to how the relevant laws in your country may
apply to your situation.

Finally, if you are a citizen or resident of a country other than the one in which you are
currently working, the information contained herein may not be applicable to you.

ARGENTINA

Notifications

Securities Law Information. Neither the Restricted Stock Units nor the issuance of Shares are
publicly offered or listed on any stock exchange in Argentina. The offer is private and not subject
to the supervision of any Argentine governmental authority.

Exchange Control Information. In the event that you transfer proceeds in excess of US$2,000,000
from the sale of Shares into Argentina in a single month, you will be subject to certain exchange
control laws. Please note that exchange control regulations in Argentina are subject to frequent
change. You should consult with your personal legal advisor regarding any exchange control
obligations that you may have.

AUSTRALIA

Restricted Stock Units Payable Only in Common Stock. Notwithstanding any discretion in the Plan,
the Grant Notice or the Agreement to the contrary, upon vesting of the Restricted Stock Units,
Shares will be issued as set forth in this section. In no event will the Award be paid to Grantee
in the form of cash.

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Securities Law Information. If Grantee acquires Shares under the Plan and subsequently offers the
Shares for sale to a person or entity resident in Australia, such an offer may be subject to
disclosure requirements under Australian law and Grantee should obtain legal advice regarding any
applicable disclosure requirements prior to
making any such offer.

BELGIUM

Tax Compliance. Grantee is required to report any taxable income attributable to the Award on his
or her annual tax return. In addition, Grantee is required to report any bank accounts opened and
maintained outside Belgium on his or her annual tax return.

BRAZIL

Compliance with Law. By accepting the Award, Grantee agrees to comply with all applicable Brazilian
laws and agrees to report and pay any and all applicable taxes associated with the receipt and
vesting of this Award, the sale of the Shares acquired under the Plan and the receipt of any
dividends.

Exchange Control Information. If Grantee is resident or domiciled in Brazil, Grantee will be
required to submit an annual declaration of assets and rights held outside of Brazil to the
Central Bank of Brazil if the aggregate value of such assets and rights exceeds US$100,000. Assets
and rights that must be reported include Shares of the Company.

CANADA

Restricted Stock Units Payable Only in Common Stock. Restricted Stock Units granted to Grantees in
Canada shall be paid in Common Stock only and do not provide any right for Grantee to receive a
cash payment, notwithstanding anything to the contrary in the Agreement governing this Award or the
Plan.

The following provisions will apply if Grantee is a resident of Quebec:

Language Consent. The parties acknowledge that it is their express wish that the Award, as well as
all documents, notices and legal proceedings entered into, given or instituted pursuant hereto or
relating directly or indirectly hereto, be drawn up in English.

Les parties reconnaissent avoir exigé la rédaction en anglais de cette convention, ainsi que de
tous documents exécutés, avis donnés et procédures judiciaries intentées, directement ou
indirectement, relativement à ou suite à la présente convention.

Data Privacy Notice and Consent. This provision supplements the Data Privacy section of the Award:

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Grantee hereby authorizes the Company and the Company’s representatives to discuss with and obtain
all relevant information from all personnel, professional or not, involved in the administration
and operation of the Plan. Grantee further authorizes the Company, any Subsidiary and the
administrator of the Plan to disclose and discuss the Plan with their advisors. Grantee further
authorizes the Company, any Subsidiary and the administrator of the Plan to record such information
and to keep such information in his or her employee file.

CHINA

Exchange Control Restriction. Grantee understands and agrees to comply with exchange control laws
in China and to immediately repatriate the proceeds from the sale of Shares and any dividends
received in relation to the Shares to China. Grantee further understands that such repatriation of
the sale proceeds and dividends may need to be effected through a special foreign exchange control
account established by Company or a Subsidiary and Grantee hereby consents and agrees that the
proceeds from the sale of Shares and any dividends received may be transferred to such special
account prior to being delivered to Grantee.

Furthermore, to facilitate compliance with any applicable laws or regulations in China, the Company
reserves the right to (i) mandate the immediate sale of Shares to which Grantee is entitled on any
applicable Vesting Date, or (ii) mandate the sale of Shares in the event of a Termination of
Service. In either case, the proceeds of the sale of such Shares, less any Tax-Related Items and
broker’s fees or commissions, will be remitted to Grantee in accordance with applicable exchange
control laws and regulations, as described above.

DENMARK

Nature of Grant. By participating in the Plan, Grantee acknowledges that he or she understands and
agrees that the Award relates to future services to be performed and is not a bonus or compensation
for past services.

Exchange Control and Tax Reporting Information. Grantee may hold Shares acquired under the Plan in
a safety-deposit account (e.g., a brokerage account) with either a Danish bank or with an approved
foreign broker or bank. If the Shares are held with a foreign broker or bank, Grantee is required
to inform the Danish Tax Administration about the safety-deposit account. For this purpose, he or
she must file a Form V (Erklaering V) with the Danish Tax Administration. Both Grantee and the
broker or bank must sign the Form V. By signing the Form V, the broker or bank undertakes an
obligation, without further request each year, to forward information to the Danish Tax
Administration concerning the Shares in the account. By signing the Form V, Grantee authorizes the
Danish Tax Administration to examine the account.

In addition, if Grantee opens a brokerage account (or a deposit account with a U.S. bank), the
brokerage account (or bank account, as applicable) will be treated as a deposit account because
cash can be held in the account. Therefore, Grantee must also file a Form K (Erklaering K) with the
Danish Tax Administration. Both Grantee and the broker must sign the Form K. By signing the Form K,
the broker undertakes an obligation, without further request each year, to forward information to
the Danish Tax Administration concerning the content of the deposit account. By signing the Form K,
Grantee authorizes the Danish Tax Administration to examine the account.

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FRANCE

Tax Information. The Restricted Stock Units are not intended to be French tax-qualified Awards.

French Language Provision. By signing and returning this Agreement, you confirm having read and
understood the documents relating to the Plan which were provided to you in English language. You
accept the terms of those documents accordingly.

French translation: En signant et renvoyant ce Contrat vous confirmez ainsi avoir lu et compris les
documents relatifs au Plan qui vous ont été communiqués en langue anglaise. Vous en acceptez les
termes en connaissance de cause.

GERMANY

Exchange Control Information. Cross-border payments in excess of €12,500 must be reported monthly
to the German Federal Bank. If Grantee uses a German bank to transfer a cross-border payment in
excess of €12,500 in connection with the sale of Shares acquired under the Plan, the bank will make
the report. No report is required for payments less than €12,500. In addition, Grantee must report
any receivables or payables or debts in foreign currency exceeding an amount of €5,000,000 on a
monthly basis.

HONG KONG

Issuance of Stock. Notwithstanding any discretion in the Plan, the Grant Notice or the Agreement to
the contrary, in no event will the Award be paid to Grantee in the form of cash upon vesting of
Restricted Stock Units.

Nature of Scheme. The Company specifically intends that the Plan will not be an occupational
retirement scheme for purposes of the Occupational Retirement Schemes Ordinance (“ORSO”).
Notwithstanding the foregoing, if the Plan is deemed to constitute an occupational retirement
scheme for the purposes of ORSO, the grant of the Award shall be void.

Securities Law Information. This Award and the Shares to be issued upon vesting of the Restricted
Stock Units do not constitute a public offer of securities and are available only for employees of
the Company or a Subsidiary. The contents of the Grant Notice, the Agreement, this Appendix and the
Plan have not been reviewed by any regulatory authority in Hong Kong. Grantee is advised to
exercise caution in relation to the Award. If Grantee is in any doubt as to the contents of the
Grant Notice, the Agreement, this Appendix or the Plan, Grantee should obtain independent
professional advice.

INDIA

Exchange Control Notification. To the extent required by local law, you must immediately repatriate
all proceeds resulting from the sale of shares of Stock issued upon vesting of the Restricted Stock
Units to India and convert the proceeds into local currency. You will receive a foreign inward

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remittance certificate (“FIRC”) from the bank where you deposit the foreign currency. You should
maintain the FIRC as evidence of the repatriation of funds in the event the Reserve Bank of India
or the Employer requests proof of repatriation.

IRELAND

Issuance of Stock. This provision supplements the Agreement for any Grantee who is a director or
shadow director of an Irish Subsidiary:

Notwithstanding any discretion in the Plan, the Grant Notice or the Agreement to the contrary, only
newly-issued Shares will be issued upon vesting of the Restricted Stock Units. In no event will
treasury Shares be issued to Grantee.

Director Notification Information. If Grantee is a director, shadow director or secretary of an
Irish Subsidiary, Grantee must notify the Irish Subsidiary in writing within five business days of
receiving or disposing of an interest in the Company (e.g., Restricted Stock Units, Shares, etc.),
or within five business days of becoming aware of the event giving rise to the notification
requirement, or within five business days of becoming a director or secretary if such an interest
exists at the time. This notification requirement also applies with respect to the interests of a
spouse or minor child (whose interests will be attributed to the director, shadow director or
secretary, as the case may be).

ITALY

Data Privacy Notice and Consent.

This provision supersedes the Data Privacy provision of the Agreement:

Grantee hereby explicitly and unambiguously consents to the collection, use, processing and
transfer, in electronic or other form, of personal data as described in this section of this
Appendix by and among, as applicable, the Employer, the Company and any Subsidiary for the
exclusive purpose of implementing, administering and managing Grantee’s participation in the Plan.

Grantee understands that the Employer, the Company and any Subsidiary may hold certain personal
information about Grantee, including but not limited to, Grantee’s name, home address and telephone
number, date of birth, social insurance number or other identification number, salary, nationality,
job title, any Shares or directorships held in the Company, details of the Restricted Stock Units
or any other entitlement to Shares awarded, canceled, exercised, vested, unvested or outstanding in
Grantee’s favor, for the exclusive purpose of managing and administering the Plan (“Personal
Data”).

Grantee also understands that providing the Company with Personal Data is necessary for the
performance of the Plan and that Grantee’s denial to provide Personal Data would make it impossible
for the Company to perform its contractual obligations and may affect Grantee’s ability to
participate in the Plan. The Controller of Personal Data processing is Ciena Corporation, with
registered offices at 1201 Winterson Road, Linthicum, Maryland 21090, United States of America,
and, pursuant to Legislative Decree no. 196/2003, its representative in Italy is Ciena Ltd.
Piazzale Biancamano, 8 Milano 20121 Italy.

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Grantee understands that Personal Data will not be publicized, but it may be transferred to banks,
other financial institutions or brokers involved in the management and administration of the Plan.
Grantee further understands that the Company and/or a Subsidiary will transfer Personal Data
amongst themselves as necessary for the purpose of implementation, administration and management of
Grantee’s participation in the Plan, and that the Company and/or a Subsidiary may each further
transfer Personal Data to third parties assisting the Company in the implementation, administration
and management of the Plan, including any requisite transfer of Personal Data to a broker or other
third party with whom Grantee may elect to deposit any Shares acquired under the Plan. Such
recipients may receive, possess, use, retain and transfer Personal Data in electronic or other
form, for the purposes of implementing, administering and managing Grantee’s participation in the
Plan. Grantee understands that these recipients may be located in or outside the European Economic
Area, such as in the United States or elsewhere. Should the Company exercise its discretion in
suspending all necessary legal obligations connected with the management and administration of the
Plan, it will delete Personal Data as soon as it has accomplished all the necessary legal
obligations connected with the management and administration of the Plan.

Grantee understands that Personal Data processing related to the purposes specified above shall
take place under automated or non-automated conditions, anonymously when possible, that comply with
the purposes for which Personal Data is collected and with confidentiality and security provisions
as set forth by applicable laws and regulations, with specific reference to Legislative Decree no.
196/2003.

The processing activity, including communication, the transfer of Personal Data abroad, including
outside of the European Economic Area as specified herein and pursuant to applicable laws and
regulations, does not require Grantee’s consent thereto as the processing is necessary to
performance of contractual obligations related to implementation, administration and management of
the Plan. Grantee understands that, pursuant to Section 7 of the Legislative Decree no. 196/2003,
Grantee has the right to, including but not limited to, access, delete, update, correct or stop,
for legitimate reason, the Personal Data processing. Furthermore, Grantee is aware that Personal
Data will not be used for direct marketing purposes. In addition, Personal Data provided can be
reviewed and questions or complaints can be addressed by contacting Grantee’s human resources
department.

Plan Document Acknowledgment. By accepting the Award, Grantee acknowledges that he or she has
received and reviewed a copy of the Plan, the Grant Notice, the Agreement and this Appendix in
their entirety and fully accepts all provisions thereof. Grantee further acknowledges that he or
she has read and specifically and expressly approves the following provisions of the Agreement:
Restricted Stock Unit Transferability; Vesting; Share Delivery Pursuant to Vested Units;
Withholding Tax; Forfeiture of Unvested Units; Retention Rights; Shareholder Rights; Applicable
Law; Data Privacy; Non-U.S. Residents as well as the Data Privacy Notice and Consent section
included in this Appendix.

Exchange Control Information. Grantee must report in his or her annual tax return: (i) any
transfers of cash or Shares to or from Italy exceeding €10,000 or the equivalent amount in U.S.
dollars; and (ii) any foreign investments or investments (including proceeds from the sale of
Shares acquired under the Plan) held outside of Italy exceeding €10,000 or the equivalent amount in
U.S. dollars, if

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the investment may give rise to income in Italy. Grantee is exempt from the formalities in (i) if
the investments are made through an authorized broker resident in Italy, as the broker will comply
with the reporting obligation on behalf of Grantee.

KOREA

Exchange Control Information. Exchange control laws require Korean residents who realize US$500,000
or more from the sale of Shares to repatriate the proceeds to Korea within eighteen months of the
sale.

MEXICO

Terms and Conditions. By accepting the Restricted Stock Units, you understand and agree that any
modification of the Plan or the Agreement or its termination shall not constitute a change or
impairment of the terms and conditions of employment.

Policy Statement. The Award of Restricted Stock Units the Company is making under the Plan is
unilateral and discretionary and, therefore, the Company reserves the absolute right to amend it
and discontinue it at any time without any liability.

The Company, with registered offices at 1201 Winterson Road, Linthicum, Maryland 21010, U.S.A., is
solely responsible for the administration of the Plan and participation in the Plan and the
acquisition of Shares does not, in any way, establish an employment relationship between you and
the Company since you are participating in the Plan on a wholly commercial basis and the sole
employer is Ciena Communications Mexico S.A. de C.V. or Ciena Mexico S.A. de C.V., nor does it
establish any rights between you and the Employer.

Plan Document Acknowledgment. By accepting the Award of Restricted Stock Units, you acknowledge
that you have received copies of and have reviewed the Plan, the Agreement and the Grant Notice in
their entirety and fully understand and accept all provisions thereof.

In addition, by accept this Award, you further acknowledge that: (i) participation in the Plan does
not constitute an acquired right; (ii) the Plan and participation in the Plan is offered by the
Company on a wholly discretionary basis; (iii) participation in the Plan is voluntary; and (iv) the
Company and any Parent, Subsidiary or Affiliate are not responsible for any decrease in the value
of the Shares underlying the Restricted Stock Units.

Finally, you hereby declare that you do not reserve any action or right to bring any claim against
the Company for any compensation or damages as a result of your participation in the Plan and
therefore grant a full and broad release to the Employer, the Company and any Parent, Subsidiary or
Affiliate with respect to any claim that may arise under the Plan.

NETHERLANDS

Nature of Grant. In accepting the Award, Grantee acknowledges that (i) the Restricted Stock Units
granted under the Plan are intended as an incentive for Grantee to remain employed with the

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Employer and are not intended as remuneration for labor performed; (ii) the Restricted Stock Units
are not intended to replace any pension rights or compensation; and (iii) the benefits under the
Plan will not automatically transfer to another corporation in the case of a merger, take-over or
transfer of liability.

Securities Law Information. Grantee should be aware of the Dutch insider trading rules which may
impact the sale of Shares acquired under the Plan. In particular, Grantee may be prohibited from
effecting certain transactions if he or she has inside information regarding the Company.

By accepting this Award, Grantee acknowledges having read and understood this Securities Law
Information section and acknowledges that it is his or her responsibility to comply with the
following Dutch insider trading rules.

Under Article 46 of the Act on the Supervision of the Securities Trade 1995, anyone who has “inside
information” related to an issuing company is prohibited from effectuating a transaction in
securities in or from the Netherlands. “Inside information” is defined as knowledge of details
concerning the issuing company to which the securities relate that is not public and which, if
published, would reasonably be expected to affect the stock price, regardless of the development of
the price.

Given the broad scope of the definition of inside information, certain employees of the Company
working at a Subsidiary in the Netherlands (including Grantee) may have inside information and,
thus, would be prohibited from effectuating a transaction in securities in the Netherlands at a
time when Grantee had such inside information.

POLAND

Exchange Control Information. Polish residents who hold foreign securities (including Shares) and
maintain accounts abroad must report information to the National Bank of Poland on transactions and
balances of the securities and cash deposited in such accounts if the value of such transactions or
balances exceeds €10,000. If required, the reports are due on a quarterly basis by the 20th day
following the end of each quarter. The reports are filed on special forms available on the website
of the National Bank of Poland.

RUSSIA

U.S. Transaction. Grantee understands that the Restricted Stock Units shall be valid and this Award
shall be concluded and become effective only when acceptance of this Award is received
electronically or otherwise by the Company in the United States. In no event will Award Shares
issued to Grantee pursuant to the Restricted Stock Units be delivered to Grantee in Russia; Award
Shares issued to Grantee pursuant to the Restricted Stock Units shall be delivered to Grantee
through E*Trade Financial Services, Inc. in the United States and kept on Grantee’s behalf in the
United States. Grantee is not permitted to sell Award Shares acquired upon vesting/settlement of
the Restricted Stock Units directly to other Russian legal entities or residents.

Settlement of Restricted Stock Units. The Company reserves the right to force the immediate sale of
any Award Shares to be issued upon vesting/settlement of the Restricted Stock Units. If applicable,
Grantee agrees that the Company is authorized to instruct its designated broker to assist with the
mandatory sale of such Award Shares (on Grantee’s behalf pursuant to this authorization) and

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Grantee expressly authorizes the Company’s designated broker to complete the sale of such Award
Shares. Grantee acknowledges that the Company’s designated broker is under no obligation to arrange
for the sale of the Award Shares at any particular price. Upon the sale of the Award Shares, the
Company agrees to pay Grantee the cash proceeds from the sale of the Award Shares, less any
brokerage fees or commissions and subject to any obligation to satisfy Tax-Related Items. Grantee
acknowledges that he or she is not aware of any material nonpublic information with respect to the
Company or any securities of the Company as of the date of this Award.

Securities Law Information. The Plan, the Award (including this Appendix), the Grant Notice and all
other materials Grantee may receive regarding participation in the Plan do not constitute
advertising or an offering of securities in Russia. The issuance of Award Shares acquired at
vesting has not and will not be registered in Russia, unless future changes in the relevant
securities regulations require otherwise. Therefore, Award Shares and any other securities
described in any Plan-related documents may not be used for public offering or public circulation
in Russia.

Exchange Control Information. Under current exchange control regulations, and to the extent it
continues to be required by local law, Grantee must repatriate the proceeds from the sale of Award
Shares and any dividends received in relation to the Shares to Russia within a reasonably short
period after receipt. The sale proceeds and any dividends received must be initially credited to
the Grantee through a foreign currency account opened in Grantee’s name at an authorized bank in
Russia. After the sale proceeds are initially received in Russia, they may be further remitted to
foreign banks in accordance with Russian exchange control laws. Grantee is encouraged to contact
Grantee’s personal advisor before remitting his or her sale proceeds to Russia as exchange control
requirements may change.

SINGAPORE

Securities Law Information. The grant of the Restricted Stock Units is being made on a private
basis and is, therefore, exempt from registration in Singapore.

Director Notification Requirement. Directors of a Singaporean Subsidiary or affiliate are subject
to certain notification requirements under the Singapore Companies Act. Directors must notify the
Singaporean Subsidiary or affiliate in writing of an interest (e.g., Restricted Stock Units, Award
Shares, etc.) in the Company or any related companies within two days of (i) its acquisition or
disposal, (ii) any change in a previously disclosed interest (e.g., when the Award Shares are
sold), or (iii) becoming a director.

SPAIN

Nature of Grant. In accepting this Award, Grantee consents to participate in the Plan and
acknowledges that he or she has received a copy of the Plan, the Agreement and the Grant Notice.

Grantee understands that the Company has unilaterally, gratuitously and discretionally decided to
grant Restricted Stock Units under the Plan to individuals who may be employees of the Company or a
Subsidiary throughout the world. The decision is a limited decision that is entered into upon the
express assumption and condition that any grant will not economically or otherwise bind the Company
or any Subsidiary. Consequently, Grantee understands that the Award is granted on the

     REV B March 2010

14

 

assumption and condition that the Award and any Shares issued upon vesting of the Restricted Stock
Units are not part of any employment contract (either with the Company or any Subsidiary) and shall
not be considered a mandatory benefit, salary for any purposes (including severance compensation)
or any other right whatsoever. Further, Grantee understands that he or she will not be entitled to
continue vesting in the Restricted Stock Units after Termination of Service. In addition, Grantee
understands that the Award would not be granted to Grantee but for the assumptions and conditions
referred to herein; thus, Grantee acknowledges and freely accepts that should any or all of the
assumptions be mistaken or should any of the conditions not be met for any reason, then the grant
of this Award and any right to the Restricted Stock Units shall be null and void.

Exchange Control Information. Grantee must declare the acquisition of Shares to the Dirección
General de Politica Comercial y de Inversiones Extranjeras, (the “DGPCIE”) of the Ministerio de
Economia for statistical purposes. Grantee must declare ownership of any Shares with the
Directorate of Foreign Transactions each January while the Shares are owned. In addition, if
Grantee wishes to import the ownership title of any Shares (i.e., share certificates) into Spain,
he or she must declare the importation of such securities to the DGPCIE. When receiving foreign
currency payments derived from the ownership of Shares (i.e., dividends or sale proceeds), Grantee
must inform the financial institution receiving the payment of the basis upon which such payment is
made. Grantee will need to provide the institution with the following information: (i) Grantee’s
name, address and fiscal identification number; (ii) the name and corporate domicile of the
Company; (iii) the amount of the payment; (iv) the currency used; (v) the country of origin; (vi)
the reasons for the payment; and (vii) additional information that may be required.

SWITZERLAND

Securities Law Information. The grant of Restricted Stock Units under the Plan is considered a
private offering in Switzerland and is, therefore, not subject to registration in Switzerland.

TAIWAN

Exchange Control Information. Grantee may acquire and remit foreign currency (including proceeds
from the sale of Shares) up to US$5,000,000 per year without justification. If the transaction
amount is TWD500,000 or more in a single transaction, Grantee must submit a Foreign Exchange
Transaction Form. If the transaction amount is US$500,000 or more in a single transaction, Grantee
must also provide supporting documentation to the satisfaction of the remitting bank.

UNITED KINGDOM

Restricted Stock Units Payable Only in Common Stock. Notwithstanding any discretion in the Plan,
the Grant Notice or the Agreement to the contrary, upon vesting of the Restricted Stock Units,
Shares will be issued as set forth in this section. In no event will the Award be paid to Grantee
in the form of cash.

Taxes. If payment or withholding of the Tax-Related Items (including the Employer NICs, as defined
below) is not made within ninety (90) days of the event giving rise to the Tax-Related Items (the
“Due Date”) or such other period specified in Section 222(1)(c) of the U.K. Income Tax

     REV B March 2010

15

 

(Earnings and Pensions) Act 2003, the amount of any uncollected Tax-Related Items will constitute a
loan owed by Grantee to the Employer, effective on the Due Date. Grantee agrees that the loan will
bear interest at the then-current Official Rate of Her Majesty’s Revenue and Customs (“HMRC”), it
will be immediately due and repayable, and the Company or the Employer may recover it at any time
thereafter by any of the means referred to in the Agreement.

Notwithstanding the foregoing, if Grantee is a director or executive officer of the Company (within
the meaning of Section 13(k) of the U.S. Securities Exchange Act of 1934, as amended), Grantee will
not be eligible for such a loan to cover the Tax-Related Items. In the event that Grantee is a
director or executive officer and the Tax-Related Items are not collected from or paid by Grantee
by the Due Date, the amount of any uncollected Tax-Related Items will constitute a benefit to
Grantee on which additional income tax and National Insurance Contributions (“NICs”) (including the
Employer NICs, as defined below) will be payable. Grantee will be responsible for reporting and
paying any income tax and NICs (including the Employer NICs, as defined below) due on this
additional benefit directly to HMRC under the self-assessment regime.

Data Privacy Notice and Consent. Grantee acknowledges and agrees, further to the consent to the
transfer of Personal Data contained in the Agreement, that Personal Data may be transferred to
third parties outside of the European Economic Area in the course of the implementation,
administration and management of the Plan.

     REV B March 2010

16exv10w1

Exhibit 10.1

COMARCO, INC.

EXECUTIVE INCENTIVE BONUS PLAN

1. Purposes

     The Comarco, Inc. Executive Incentive Bonus Plan is a component of the Company’s overall
strategy to pay its employees for performance or for such other reasons that the Committee, in its
discretion, deems appropriate or advisable. The purposes of this Plan are to: (a) motivate
executives by tying their compensation to performance; (b) reward exceptional performance and
contributions that support overall Company objectives; and (c) attract and retain top performing
employees.

2. Definitions

     (a) “Award” means any cash payment made under the Plan.

     (b) “Code” means the Internal Revenue Code of 1986, as amended.

     (c) “Committee” means the Compensation Committee of the Company’s Board of Directors, or such
other committee designated by that Board of Directors, which is authorized to administer the Plan
under Section 3 hereof.

     (d) “Company” means Comarco, Inc., a California corporation, and any entity, including any
“parent corporation” or “subsidiary corporation” within the meaning of Section 424 of the Code,
which together with the Company, is under common control within the meaning of Section 414 of the
Code.

     (e) “Covered Individuals” means, with respect to any fiscal year, any executive officer of the
Company or of any subsidiary or any other key employee of the Company or any subsidiary selected by
the Committee to be eligible to receive an Award.

     (f) “Discretionary Award” means any cash incentive payment made under Section 6(b) of this
Plan.

     (g) “Participant” means any Covered Individual selected by the Committee to receive an Award
under this Plan with respect to any given fiscal year of the Company. A Participant may be a
person who becomes an executive during the year.

     (h) “Performance Award” means any cash incentive payment made under Section 6(a) of this Plan.

     (i) “Performance Measure” means one or more performance measures or metrics selected by the
Committee to measure Company, affiliate, and/or business unit performance for a Performance Period,
whether in absolute or relative terms (including, without limitation, terms relative to a
pre-established target, to previous year’s (or other period’s) results or to a peer group or
index), which such measures or metrics may include (but need not be limited to) any of the
following: (i) basic or diluted earnings per share; (ii) sales or revenues (gross or net); (iii)
gross margins; (iv) earnings before interest and taxes or other similar calculations (in total or
on a per share basis); (v) net income, operating income or operating margin; (vi) returns on
equity, assets, capital, revenue or other measures or metrics; (vii) economic value added; (vii)
liquidity, working capital or cash flow (including such ratios and measurements relating thereto as
the Committee determines); (ix) total shareholder return; (x) product development, product market
share, research, licensing, litigation, human resources, information services, mergers,
acquisitions, sales of assets of affiliates or business units; (xi) restrictions, covenants and
ratios in material contracts, credit facilities and other material agreements; and (xii) such other
measures or metrics as determined by the Committee, including such subjective criteria as the
Committee may determine. Each such measure or metric shall be, to the extent applicable,
determined in accordance with generally accepted accounting principles as consistently applied by
the Company or such other standard or method of calculation or measurement as so determined by the

 

 

Committee. Performance Measures may vary from Performance Period to Performance Period and
from Participant to Participant, and may be established on a stand-alone basis, in tandem or in the
alternative.

     (j) “Performance Period” means one or more periods of time, as the Committee may designate,
over which the attainment of one or more Performance Measure(s) will be measured for the purpose of
determining a Participant’s rights in respect of a Performance Award.

     (k) “Plan” means this Plan, which shall be known as the Comarco, Inc. Executive Incentive
Bonus Plan.

3. Administration

     (a) Subject to Section 3(c) below, the Plan shall be administered by the Committee and the
Committee shall have the authority to:

     (i) interpret and determine all questions of policy and expediency pertaining to the
Plan;

     (ii) adopt such rules, regulations, agreements and instruments as it deems necessary
for its proper administration;

     (iii) select Participants to receive Awards;

     (iv) determine the terms and conditions of Awards;

     (v) determine whether an Award shall be a Performance Award or a Discretionary Award;

     (vi) determine amounts subject to Awards (within the limits prescribed in Sections 6(a)
and 6(b) of the Plan);

     (vii) determine whether Awards will be granted in replacement of or as alternatives to
any other incentive or compensation plan of the Company or an acquired business unit;

     (viii) grant waivers of Plan or Award conditions;

     (ix) accelerate or delay the payment of Awards or otherwise subject Awards to
recapture, restrictions or forfeiture conditions;

     (x) correct any defect, supply any omission, or reconcile any inconsistency in the
Plan, any Award, any Award notice or other document prepared in connection with the Plan;

     (xi) take any and all other actions it deems necessary or advisable for the proper
administration of the Plan and any Award;

     (xii) adopt such Plan procedures, regulations, subplans and the like as it deems are
necessary to enable Participants to receive Awards; and

     (xiii) amend or modify any Award, including applicable Performance Measures, at any
time and from time to time.

     (b) The Committee may delegate its authority to grant and administer Awards to a separate
committee or to other persons.

     (c) Notwithstanding Section 3(a) above, the Company’s Board of Directors shall retain final
authority with respect to any Awards granted to the Company’s Chief Executive Officer and all
decisions, determinations and

2

 

interpretations of, and all actions taken by, the Committee with respect to such Awards shall
be subject to the approval, confirmation or ratification of the Board of Directors of the Company
(which deliberations shall exclude the Company’s Chief Executive Officer).

     (d) All decisions, determinations and interpretations of, and all actions taken by, the
Committee or the Board of Directors of the Company in good faith shall be final, binding and
conclusive on all persons, including the Company, the Participants and their estates and
beneficiaries.

4. Eligibility

     Only Covered Individuals designated by the Committee as eligible may become Participants in
the Plan.

5. Performance Goals

     (a) The Committee shall establish Performance Measures applicable to a particular Performance
Period prior to its start, provided, however, that such Performance Measures may be established
after the start of the Performance Period in the Committee’s discretion.

     (b) The Committee shall determine the target level of performance or performance target
“zones” that must be achieved with respect to each criterion that is identified in a Performance
Measure in order for a Performance Measure to be treated as attained.

     (c) In the event Performance Measures are based on more than one business criterion, the
Committee may determine to make Performance Awards upon attainment of the Performance Measure
relating to any one or more of such criteria.

     (d) As soon as reasonably practicable following the conclusion of each fiscal year (or longer
or shorter Performance Period as may be applicable) and prior to the payment in respect of any
Performance Award under the Plan, the Committee shall certify, in writing, if and the extent to
which the Performance Measure(s) have been satisfied and the proposed payment to be awarded to each
Participant for the Performance Period.

6. Awards

     (a) Performance Awards may be made on the basis of Company, affiliate, geographic and/or
business unit Performance Measure(s) and formulas determined by the Committee. Notwithstanding any
other provision of the Plan to the contrary, the maximum amount payable under a Performance Award
to any Participant with respect to any fiscal year of the Company shall not exceed $500,000.

     (b) Discretionary Awards may be made by the Committee, in its judgment, for reasons or in
amounts all as determined by the Committee in its discretion. Notwithstanding any other provision
of the Plan to the contrary, the maximum amount payable under a Discretionary Award to any
Participant with respect to any fiscal year of the Company shall not exceed $200,000.

     (c) The Committee, in its discretion, may increase, reduce or eliminate a Participant’s Award
at any time before it is paid, regardless of whether such Award is a Performance Award or a
Discretionary Award.

     (d) The payment of an Award requires that the Participant be an active employee and on the
Company’s payroll on the day the Award is paid to receive any portion of the Award. The Committee
may make exceptions to this requirement in the case of retirement, death or disability, or in the
case of a corporate change in control as determined by the Committee in its sole discretion.

     (e) The Company will withhold all applicable federal, state, local and foreign taxes required
by law to be paid or withheld relating to the receipt or payment of any Award.

3

 

7. General

     (a) The Plan shall become effective as of March 23, 2010, the date of approval of the Plan by
the Board of Directors.

     (b) No rights of a Participant under the Plan shall be assignable by such Participant, by
operation of law or otherwise, except by will or the laws of descent and distribution. No
Participant may create a lien on any funds or rights to which he or she may have an interest under
the Plan, or which is held by the Company for the account of the Participant under the Plan.

     (c) Participation in the Plan shall not give any Covered Individual any right to remain in the
Company’s employ or any other employment rights. Further, the adoption of this Plan shall not be
deemed to give any Covered Individual or other individual the right to be selected as a Participant
or to be granted an Award.

     (d) To the extent any person acquires a right to receive payments from the Company under this
Plan, such rights shall be no greater than the rights of an unsecured creditor of the Company’s.

     (e) The Plan shall be governed by and construed in accordance with the laws of the State of
California (without regard to principles of conflicts of law).

     (f) The Board may modify, amend or terminate the Plan at any time and for any reason.

4

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