Document:

QuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.3    
    

 
 

IKANOS COMMUNICATIONS    
    
    2004 EQUITY INCENTIVE PLAN    
    

        1.    Purposes of the Plan.    The purposes of this Plan are: 

	•
	to
attract and retain the best available personnel for positions of substantial responsibility,

	•
	to
provide additional incentive to Employees, Directors and Consultants, and

	•
	to
promote the success of the Company's business. 

        The
Plan permits the grant of Incentive Stock Options, Nonstatutory Stock Options, Restricted Stock, Stock Appreciation Rights, Deferred Stock Units, Performance Units and Performance
Shares. 

        2.    Definitions.    As used herein, the following definitions will apply: 

        (a)   "Administrator" means the Board or any of its Committees as will be administering the Plan, in accordance with
Section 4 of the Plan. 

        (b)   "Applicable Laws" means the requirements relating to the administration of equity-based awards or equity compensation
programs under U.S. state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and the applicable laws
of any foreign country or jurisdiction where Awards are, or will be, granted under the Plan. 

        (c)   "Award" means, individually or collectively, a grant under the Plan of Options, SARs, Restricted Stock, Deferred Stock
Units, Performance Units or Performance Shares. 

        (d)   "Award Agreement" means the written or electronic agreement setting forth the terms and provisions applicable to each
Award granted under the Plan. The Award Agreement is subject to the terms and conditions of the Plan. 

        (e)   "Awarded Stock" means the Common Stock subject to an Award. 

        (f)    "Board" means the Board of Directors of the Company. 

        (g)   "Change in Control" means the occurrence of any of the following events: 

          (i)  Any
"person" (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the "beneficial owner" (as defined in Rule 13d-3
of the Exchange Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the total voting power represented by the Company's then outstanding voting
securities; 

         (ii)  The
consummation of the sale or disposition by the Company of all or substantially all of the Company's assets; 

        (iii)  A
change in the composition of the Board occurring within a two-year period, as a result of which fewer than a majority of the directors are Incumbent
Directors. "Incumbent Directors" means directors who either (A) are Directors as of the effective date of the Plan, or (B) are elected, or
nominated for election, to the Board with the affirmative votes of at least a majority of the Incumbent Directors at the time of such election or nomination (but will not include an individual whose
election
or nomination is in connection with an actual or threatened proxy contest relating to the election of directors to the Company); or 

        (iv)  The
consummation of a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the voting
securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its
parent) at least fifty percent (50%) of the total voting power represented by the voting 

 

securities
of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation. 

        (h)   "Code" means the Internal Revenue Code of 1986, as amended. Any reference to a section of the Code herein will be a
reference to any successor or amended section of the Code. 

        (i)    "Committee" means a committee of Directors or other individuals satisfying Applicable Laws appointed by the Board in
accordance with Section 4 of the Plan. 

        (j)    "Common Stock" means the common stock of the Company or, as applicable (for an Award of Performance Units or Deferred
Stock Units), the cash equivalent thereof. 

        (k)   "Company" means Ikanos Communications, a Delaware corporation, or any successor thereto. 

        (l)    "Consultant" means any person, including an advisor, engaged by the Company or a Parent or Subsidiary to render services
to such entity. 

        (m)  "Deferred Stock Unit" means an Award that the Administrator permits to be paid in installments or on a deferred basis
pursuant to Sections 4 and 10 of the Plan. 

        (n)   "Director" means a member of the Board. 

        (o)   "Disability" means total and permanent disability as defined in Section 22(e)(3) of the Code, provided that in the
case of Awards other than Incentive Stock Options, the Administrator in its discretion may determine whether a permanent and total disability exists in accordance with uniform and
non-discriminatory standards adopted by the Administrator from time to time. 

        (p)   "Employee" means any person, including Officers and Directors, employed by the Company or any Parent or Subsidiary of the
Company. Neither service as a Director nor payment of a director's fee by the Company will be sufficient to constitute "employment" by the Company. 

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

        (r)   "Exchange Program" means a program under which (i) outstanding Awards are surrendered or cancelled in exchange for
Awards of the same type (which may have lower exercise prices and different terms), Awards of a different type, or cash, or (ii) the exercise price of an outstanding Award is reduced. The
Administrator, in its sole discretion, will determine the terms and conditions of any Exchange Program. 

        (s)   "Fair Market Value" means, as of any date, the value of Common Stock determined as follows: 

          (i)  If
the Common Stock is listed on any established stock exchange or a national market system, including without limitation the Nasdaq National Market or The Nasdaq
SmallCap Market of The Nasdaq Stock Market, its Fair Market Value will be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system on
the day of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; 

         (ii)  If
the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, the Fair Market Value of a Share of Common Stock will be
the mean between the high bid and low asked prices for the Common Stock on the day of determination, as reported in The Wall Street Journal or such
other source as the Administrator deems reliable; 

        (iii)  For
purposes of any Awards granted on the Registration Date, the Fair Market Value will be the initial price to the public as set forth in the final prospectus
included within the 

2

 

registration
statement in Form S-1 filed with the Securities and Exchange Commission for the initial public offering of the Company's Common Stock; or 

        (iv)  In
the absence of an established market for the Common Stock, the Fair Market Value will be determined in good faith by the Administrator. 

        (t)    "Fiscal Year" means the fiscal year of the Company. 

        (u)   "Incentive Stock Option" means an Option intended to qualify as an incentive stock option within the meaning of
Section 422 of the Code and the regulations promulgated thereunder. 

        (v)   "Inside Director" means a Director who is an Employee. 

        (w)  "Nonstatutory Stock Option" means an Option that by its terms does not qualify or is not intended to qualify as an
Incentive Stock Option. 

        (x)   "Officer" means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and
the rules and regulations promulgated thereunder. 

        (y)   "Option" means a stock option granted pursuant to the Plan. 

        (z)   "Outside Director" means a Director who is not an Employee. 

        (aa)
"Parent" means a "parent corporation," whether now or hereafter existing, as defined in Section 424(e) of the Code. 

        (bb)
"Participant" means the holder of an outstanding Award. 

        (cc)
"Performance Goals" means the goal(s) determined by the Administrator (in its discretion) to be applicable to a Participant with
respect to an Award. As determined by the Administrator, the Performance Goals applicable to an Award may provide for a targeted level or levels of achievement using one or more of the following
measures: (i) cash flow, (ii) customer satisfaction, (iii) deployments, (iv) design wins, (v) earnings, (vi) gross margin, (vii) market price of stock,
(viii) market share, (ix) net income, (x) operating expenses, (xi) operating income, (xii) operating margin, (xiii) return on capital, (xiv) return on
equity, (xv) return on net assets, (xvi) revenue and (xvii) sales. The Performance Goals may differ from Participant to Participant and from Award to Award. Any criteria used may
be measured, as applicable, (i) in absolute terms, (ii) in relative terms (including, but not limited to, passage of time or against another company or companies), (iii) on a
per-share basis, (iv) against the performance of the Company as a whole or a segment of the Company, and (v) on a pre-tax or after-tax basis. 

        (dd)
"Performance Share" means an Award granted to a Service Provider pursuant to Section 9. 

        (ee)
"Performance Unit" means an Award granted to a Service Provider pursuant to Section 9. 

        (ff)
"Period of Restriction" means the period during which the transfer of Shares of Restricted Stock are subject to restrictions and
therefore the Shares are subject to a substantial risk of forfeiture. Such restrictions may be based on the passage of time, the achievement of target levels of performance, or the occurrence of other
events as determined by the Administrator. 

        (gg)
"Plan" means this 2004 Equity Incentive Plan. 

        (hh)
"Registration Date" means the effective date of the first registration statement that is filed by the Company and declared effective
pursuant to Section 12(g) of the Exchange Act, with respect to any class of the Company's securities. 

3

 

        (ii)
"Restricted Stock" means shares of Common Stock issued pursuant to a Restricted Stock award under Section 7 of the Plan or
issued pursuant to the early exercise of an Option. 

        (jj)
"Rule 16b-3" means Rule 16b-3 of the Exchange Act or any successor to
Rule 16b-3, as in effect when discretion is being exercised with respect to the Plan. 

        (kk)
"Section 16(b)" means Section 16(b) of the Exchange Act. 

        (ll)
"Service Provider" means an Employee, Director or Consultant. 

        (mm)
"Share" means a share of the Common Stock, as adjusted in accordance with Section 14 of the Plan. 

        (nn)
"Stock Appreciation Right" or "SAR" means an Award, granted alone or in connection
with an Option, that pursuant to Section 8 is designated as a SAR. 

        (oo)
"Subsidiary" means a "subsidiary corporation," whether now or hereafter existing, as defined in Section 424(f) of the Code. 

        3.    Stock Subject to the Plan.    

        (a)    Stock Subject to the Plan.    Subject to the provisions of Section 14 of the Plan, the maximum aggregate
number of Shares that may be optioned and sold under the Plan is (i) the number of Shares which have been reserved but not issued under the Company's 1999 Stock Plan (the
"1999 Plan") as of the Registration Date, (ii) any Shares returned to the 1999 Plan as a result of termination of options or repurchase of Shares
issued under such plan, and (iii) an annual increase to be added on the first day of the Company's fiscal year beginning in 2005, equal to the  lesser of (A) 4.4% of the outstanding Shares on
such date or (B) 3,000,000 shares, or (C) an amount determined by the Board. The
Shares may be authorized, but unissued, or reacquired Common Stock. Shares will not be deemed to have been issued pursuant to the Plan with respect to any portion of an Award that is settled in cash.
Upon payment in Shares pursuant to the exercise of an SAR or settlement of any other Award, the number of Shares available for issuance under the Plan will be reduced only by the number of Shares
actually issued in such payment or settlement. If the exercise price of an Award is paid by tender to the Company, or attestation to the ownership, of Shares owned by the Participant, the number of
Shares available for issuance under the Plan will be reduced by the total number of Shares of Awarded Stock. 

        (b)    Lapsed Awards.    If an Award expires or becomes unexercisable without having been exercised in full, or is
surrendered pursuant to an Exchange Program, the unpurchased Shares which were subject thereto will become available for future grant or sale under the Plan (unless the Plan has terminated); provided,
however, that Shares that have actually been issued under the Plan will not be returned to the Plan and will not become available for future distribution under the Plan, except that if unvested Shares
are forfeited or repurchased by the Company, such Shares will become available for future grant under the Plan. 

        4.    Administration of the Plan.    

        (a)    Procedure.    

        (i)    Multiple Administrative Bodies.    Different Committees with respect to different groups of Service Providers
may administer the Plan. 

        (ii)    Section 162(m).    To the extent that the Administrator determines it to be necessary or desirable to
qualify Awards granted hereunder as "performance-based compensation" within the meaning of Section 162(m) of the Code, the Plan will be administered by a Committee of two or more "outside
directors" within the meaning of Section 162(m) of the Code. 

4

 

        (iii)    Rule 16b-3.    To the extent desirable to qualify transactions hereunder as exempt under
Rule 16b-3, the transactions contemplated hereunder will be structured to satisfy the requirements for exemption under Rule 16b-3. 

        (iv)    Other Administration.    Other than as provided above, the Plan will be administered by (A) the Board
or (B) a Committee, which committee will be constituted to satisfy Applicable Laws. 

        (v)    Delegation of Authority for Day-to-Day Administration.    Except to the extent
prohibited by Applicable Law, the Administrator may delegate to one or more individuals the day-to-day administration of the Plan and any of the functions assigned to it under
the Plan. Such delegation may be revoked at any time. The Administrator may not delegate authority with respect to Awards intended to qualify as "performance-based compensation" within the meaning of
Section 162(m) of the Code. 

        (b)    Powers of the Administrator.    Subject to the provisions of the Plan, and in the case of a Committee, subject
to the specific duties delegated by the Board to such Committee, the Administrator will have the authority, in its discretion: 

          (i)  to
determine the Fair Market Value; 

         (ii)  to
select the Service Providers to whom Awards may be granted hereunder; 

        (iii)  to
determine the number of Shares to be covered by each Award granted hereunder; 

        (iv)  to
approve forms of agreement for use under the Plan; 

         (v)  to
determine the terms and conditions, not inconsistent with the terms of the Plan, of any Award granted hereunder. Such terms and conditions include, but are not
limited to, the exercise price, the time or times when Awards may be exercised (which may be based on performance criteria), any vesting acceleration or waiver of forfeiture or repurchase
restrictions, and any restriction or limitation regarding any Award or the Shares relating thereto, based in each case on such factors as the Administrator, in its sole discretion, will determine; 

        (vi)  to
reduce the exercise price of any Award to the then current Fair Market Value if the Fair Market Value of Common Stock covered by such Award shall have declined since
the date the Award was granted; 

       (vii)  to
institute an Exchange Program; 

      (viii)  to
construe and interpret the terms of the Plan and Awards granted pursuant to the Plan; 

        (ix)  to
prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans established for the
purpose of satisfying applicable foreign laws (including qualifying for preferred tax treatment under applicable foreign tax laws); 

         (x)  to
modify or amend each Award (subject to Section 18(c) of the Plan), including the discretionary authority to extend the post-termination
exercisability period of Awards longer than is otherwise provided for in the Plan; 

        (xi)  to
allow Participants to satisfy withholding tax obligations by electing to have the Company withhold from the Shares or cash to be issued upon exercise or settlement
of an Award that number of Shares or cash having a Fair Market Value equal to the minimum amount required to be withheld. The Fair Market Value of any Shares to be withheld will be determined on the
date that the amount of tax to be withheld is to be determined. All 

5

 

elections
by a Participant to have Shares or cash withheld for this purpose will be made in such form and under such conditions as the Administrator may deem necessary or advisable); 

       (xii)  to
authorize any person to execute on behalf of the Company any instrument required to effect the grant of an Award previously granted by the Administrator; 

      (xiii)  to
allow a Participant to defer the receipt of the payment of cash or the delivery of Shares that would otherwise be due to such Participant under an Award; 

      (xiv)  to
determine whether Awards will be settled in Shares, cash, or in any combination thereof; and 

       (xv)  to
make all other determinations deemed necessary or advisable for administering the Plan. 

        (c)    Effect of Administrator's Decision.    The Administrator's decisions, determinations and interpretations will
be final and binding on all Participants and any other holders of Awards. 

        5.    Eligibility.    Nonstatutory Stock Options, Restricted Stock, Stock Appreciation Rights, Deferred Stock Units,
Performance Units and Performance Shares may be granted to Service Providers. Incentive Stock Options may be granted only to Employees. 

        6.    Stock Options.    

        (a)    Limitations.    

          (i)  Each
Option will be designated in the Award Agreement as either an Incentive Stock Option or a Nonstatutory Stock Option. However, notwithstanding such designation, to
the extent that the
aggregate Fair Market Value of the Shares with respect to which Incentive Stock Options are exercisable for the first time by the Participant during any calendar year (under all plans of the Company
and any Parent or Subsidiary) exceeds $100,000, such Options will be treated as Nonstatutory Stock Options. For purposes of this Section 6(a), Incentive Stock Options will be taken into account
in the order in which they were granted. The Fair Market Value of the Shares will be determined as of the time the Option with respect to such Shares is granted. 

         (ii)  The
following limitations will apply to grants of Options and Stock Appreciation Rights: 

        (1)   No
Service Provider will be granted, in any Fiscal Year, Options or Stock Appreciation Rights to purchase more than  
[                                      ] Shares. The foregoing limitation will be adjusted proportionately in connection with any change in the
Company's capitalization as described in Section 14. 

        (2)   If
an Award is cancelled in the same Fiscal Year in which it was granted (other than in connection with a transaction described in Section 14), the cancelled
Award will be counted against the limits set forth in subsection (1) above. For this purpose, if the exercise price of an Award is reduced, the transaction will be treated as a cancellation of
the Award and the grant of a new Award. 

        (b)    Term of Option.    The term of each Option will be stated in the Award Agreement. In the case of an Incentive
Stock Option, the term will be ten (10) years from the date of grant or such shorter term as may be provided in the Award Agreement. Moreover, in the case of an Incentive Stock Option granted
to a Participant who, at the time the Incentive Stock Option is granted, owns stock representing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company
or any Parent or Subsidiary, the term of the Incentive Stock 

6

 

Option
will be five (5) years from the date of grant or such shorter term as may be provided in the Award Agreement. 

        (c)    Option Exercise Price and Consideration.    

        (i)    Exercise Price.    The per Share exercise price for the Shares to be issued pursuant to exercise of an Option
will be determined by the Administrator, subject to the following: 

        (1)   In
the case of an Incentive Stock Option 

        a)    granted
to an Employee who, at the time the Incentive Stock Option is granted, owns stock representing more than ten percent (10%) of the voting power of all classes of
stock of the Company or any Parent or Subsidiary, the per Share exercise price will be no less than 110% of the Fair Market Value per Share on the date of grant. 

        b)    granted
to any Employee other than an Employee described in paragraph (A) immediately above, the per Share exercise price will be no less than 100% of the Fair
Market Value per Share on the date of grant. 

        c)     Notwithstanding
the foregoing, Incentive Stock Options may be granted with a per Share exercise price of less than 100% of the Fair Market Value per Share on the date of
grant pursuant to a transaction described in, and in a manner consistent with, Section 424(a) of the Code. 

        (2)   In
the case of a Nonstatutory Stock Option, the per Share exercise price will be determined by the Administrator. In the case of a Nonstatutory Stock Option intended to
qualify as "performance-based compensation" within the meaning of Section 162(m) of the Code, the per Share exercise price will be no less than 100% of the Fair Market Value per Share on the
date of grant. 

        (ii)    Waiting Period and Exercise Dates.    At the time an Option is granted, the Administrator will fix the period
within which the Option may be exercised and will determine any conditions that must be satisfied before the Option may be exercised. 

        (iii)    Form of Consideration.    The Administrator will determine the acceptable form of consideration for
exercising an Option, including the method of payment. In the case of an Incentive Stock Option, the Administrator will determine the acceptable form of consideration at the time of grant. Such
consideration, to the extent permitted by Applicable Law, may consist entirely of: (1) cash; (2) check; (3) promissory note; (4) other Shares that meet conditions
established by the Administrator to avoid averse accounting consequences (as determined by the Administrator); (5) consideration received by the Company under a cashless exercise program
implemented by the Company in connection with the Plan; (6) a reduction in the amount of any Company liability to the Participant, including any liability attributable to the Participant's
participation in any Company-sponsored deferred compensation program or arrangement; (7) any combination of the foregoing methods of payment; or (8) such other consideration and method
of payment for the issuance of Shares to the extent permitted by Applicable Laws. 

        (d)    Exercise of Option.    

        (i)    Procedure for Exercise; Rights as a Stockholder.    Any Option granted hereunder will be exercisable according
to the terms of the Plan and at such times and under such conditions as determined by the
Administrator and set forth in the Award Agreement. An Option may not be exercised for a fraction of a Share. 

7

  

        An
Option will be deemed exercised when the Company receives: (x) notice of exercise (in such form as the Administrator specify from time to time) from the person entitled to
exercise the Option, and (y) full payment for the Shares with respect to which the Option is exercised (together with any applicable withholding taxes). Full payment may consist of any
consideration and method of payment authorized by the Administrator and permitted by the Award Agreement and the Plan. Shares issued upon exercise of an Option will be issued in the name of the
Participant or, if requested by the Participant, in the name of the Participant and his or her spouse. Until the Shares are issued (as evidenced by the appropriate entry on the books of the Company or
of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder will exist with respect to the Awarded Stock, notwithstanding the
exercise of the Option. The Company will issue (or cause to be issued) such Shares promptly after the Option is exercised. No adjustment will be made for a dividend or other right for which the record
date is prior to the date the Shares are issued, except as provided in Section 14 of the Plan or the applicable Award Agreement. 

        Exercising
an Option in any manner will decrease the number of Shares thereafter available under the Option by the number of Shares as to which the Option is exercised. 

        (ii)    Termination of Relationship as a Service Provider.    If a Participant ceases to be a Service Provider, other
than upon the Participant's death or Disability, the Participant may exercise his or her Option within such period of time as is specified in the Award Agreement to the extent that the Option is
vested on the date of termination (but in no event later than the expiration of the term of such Option as set forth in the Award Agreement). In the absence of a specified time in the Award Agreement,
the Option will remain exercisable for three (3) months following the Participant's termination. Unless otherwise provided by the Administrator, if on the date of termination the Participant is
not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will revert to the Plan. If after termination the Participant does not exercise his or her Option
within the time specified by the Administrator, the Option will terminate, and the Shares covered by such Option will revert to the Plan. 

        (iii)    Disability of Participant.    If a Participant ceases to be a Service Provider as a result of the
Participant's Disability, the Participant may exercise his or her Option within such period of time as is specified in the Award Agreement to the extent the Option is vested on the date of termination
(but in no event later than the expiration of the term of such Option as set forth in the Award Agreement). In the absence of a specified time in the Award Agreement, the Option will remain
exercisable for twelve (12) months following the Participant's termination. Unless otherwise provided by the Administrator, if on the date of termination the Participant is not vested as to his
or her entire Option, the Shares covered by the unvested portion of the Option will revert to the Plan. If after termination the Participant does not exercise his or her Option within the time
specified herein, the Option will terminate, and the Shares covered by such Option will revert to the Plan. 

        (iv)    Death of Participant.    If a Participant dies while a Service Provider, the Option may be exercised following
the Participant's death within such period of time as is specified in the Award Agreement to the extent that the Option is vested on the date of death (but in no event may the option be exercised
later than the expiration of the term of such Option as set forth in the Award Agreement), by the Participant's designated beneficiary, provided such beneficiary has been designated prior to the
Participant's death in a form acceptable to the Administrator. If no such beneficiary has been designated by the Participant, then such Option may be exercised by the personal representative of the
Participant's estate or by the person(s) to whom the Option is transferred pursuant to the Participant's will or in accordance with the laws of descent and distribution. In the absence of a specified
time in the Award Agreement, 

8

 

the
Option will remain exercisable for twelve (12) months following the Participant's death. Unless otherwise provided by the Administrator, if at the time of death the Participant is not
vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will immediately revert to the Plan. If the Option is not so exercised within the time specified herein,
the Option will terminate, and the Shares covered by such Option will revert to the Plan. 

        7.    Restricted Stock.    

        (a)    Grant of Restricted Stock.    Subject to the terms and provisions of the Plan, the Administrator, at any time
and from time to time, may grant Shares of Restricted Stock to Service Providers in such amounts as the Administrator, in its sole discretion, will determine. 

        (b)    Restricted Stock Agreement.    Each Award of Restricted Stock will be evidenced by an Award Agreement that will
specify the Period of Restriction, the number of Shares granted, and such other terms and conditions as the Administrator, in its sole discretion, will determine. Unless the Administrator determines
otherwise, Shares of Restricted Stock will be held by the Company as escrow agent until the restrictions on such Shares have lapsed. 

        (c)    Transferability.    Except as provided in this Section 7, Shares of Restricted Stock may not be sold,
transferred, pledged, assigned, or otherwise alienated or hypothecated until the end of the applicable Period of Restriction. 

        (d)    Other Restrictions.    The Administrator, in its sole discretion, may impose such other restrictions on Shares
of Restricted Stock as it may deem advisable or appropriate. 

        (e)    Removal of Restrictions.    Except as otherwise provided in this Section 7, Shares of Restricted Stock
covered by each Restricted Stock grant made under the Plan will be released from escrow as soon as practicable after the last day of the Period of Restriction. The Administrator, in its discretion,
may accelerate the time at which any restrictions will lapse or be removed. If the Administrator determines that it is desirable for an Award to qualify as "performance-based compensation" for
purposes of Section 162(m) of the Code, the Period of Restriction shall lapse upon the achievement of Performance Goals. 

        (f)    Voting Rights.    During the Period of Restriction, Service Providers holding Shares of Restricted Stock
granted hereunder may exercise full voting rights with respect to those Shares, unless the Administrator determines otherwise. 

        (g)    Dividends and Other Distributions.    During the Period of Restriction, Service Providers holding Shares of
Restricted Stock will be entitled to receive all dividends and other distributions paid with respect to such Shares unless otherwise provided in the Award Agreement. If any such dividends or
distributions are paid in Shares, the Shares will be subject to the same restrictions on transferability and forfeitability as the Shares of Restricted Stock with respect to which they were paid. 

        (h)    Return of Restricted Stock to Company.    On the date set forth in the Award Agreement, the Restricted Stock
for which restrictions have not lapsed will revert to the Company and again will become available for grant under the Plan. 

        8.    Stock Appreciation Rights.    

        (a)    Grant of SARs.    Subject to the terms and conditions of the Plan, a SAR may be granted to Service Providers at
any time and from time to time as will be determined by the Administrator, in its sole discretion. 

        (b)    Number of Shares.    The Administrator will have complete discretion to determine the number of SARs granted to
any Service Provider. 

9

 

        (c)    Exercise Price and Other Terms.    The Administrator, subject to the provisions of the Plan, will have complete
discretion to determine the terms and conditions of SARs granted under the Plan. 

        (d)    Exercise of SARs.    SARs will be exercisable on such terms and conditions as the Administrator, in its sole
discretion, will determine. 

        (e)    SAR Agreement.    Each SAR grant will be evidenced by an Award Agreement that will specify the exercise price,
the term of the SAR, the conditions of exercise, and such other terms and conditions as the Administrator, in its sole discretion, will determine. 

        (f)    Expiration of SARs.    An SAR granted under the Plan will expire upon the date determined by the Administrator,
in its sole discretion, and set forth in the Award Agreement. Notwithstanding the foregoing, the rules of Section 6(d) also will apply to SARs. 

        (g)    Payment of SAR Amount.    Upon exercise of an SAR, a Participant will be entitled to receive payment from the
Company in an amount determined by multiplying: 

          (i)  The
difference between the Fair Market Value of a Share on the date of exercise over the exercise price; times 

         (ii)  The
number of Shares with respect to which the SAR is exercised. 

        At
the discretion of the Administrator, the payment upon SAR exercise may be in cash, in Shares of equivalent value, or in some combination thereof. 

        9.    Performance Units and Performance Shares.    

        (a)    Grant of Performance Units/Shares.    Subject to the terms and conditions of the Plan, Performance Units and
Performance Shares may be granted to Service Providers at any time and from time to time, as will be determined by the Administrator, in its sole discretion. The Administrator will have complete
discretion in determining the number of Performance Units and Performance Shares granted to each Participant. 

        (b)    Value of Performance Units/Shares.    Each Performance Unit will have an initial value that is established by
the Administrator on or before the date of grant. Each Performance Share will have an initial value equal to the Fair Market Value of a Share on the date of grant. 

        (c)    Performance Objectives and Other Terms.    The Administrator will set performance objectives or other vesting
provisions (including, without limitation, continued status as a Service Provider) in its discretion which, depending on the extent to which they are met, will determine the number or value of
Performance Units/Shares that will be paid out to the Service Providers. The time period during which the performance objectives or other vesting provisions must be met will be called the
"Performance Period." Each Award of Performance Units/Shares will be evidenced by an Award Agreement that will specify the Performance Period, and such
other terms and conditions as the Administrator, in its sole discretion, will determine. The Administrator may set performance objectives based upon the achievement of Company-wide,
divisional, or individual goals (including solely continued service), applicable federal or state securities laws, or any other basis determined by the Administrator in its discretion. If the
Administrator desires that the Award qualify as "performance-based compensation" under Section 162(m) of the Code, the vesting provisions and performance objectives will be based only on
satisfaction of Performance Goals. 

        (d)    Earning of Performance Units/Shares.    After the applicable Performance Period has ended, the holder of
Performance Units/Shares will be entitled to receive a payout of the number of Performance Units/Shares earned by the Participant over the Performance Period, to be determined as a function of the
extent to which the corresponding performance objectives or other vesting provisions have been achieved. After the grant of a Performance Unit/Share, the 

10

 

Administrator,
in its sole discretion, may reduce or waive any performance objectives or other vesting provisions for such Performance Unit/Share. 

        (e)    Form and Timing of Payment of Performance Units/Shares.    Payment of earned Performance Units/Shares will be
made after the expiration of the applicable Performance Period at the time determined by the Administrator. The Administrator, in its sole discretion, may pay earned Performance Units/Shares in the
form of cash, in Shares (which have an aggregate Fair Market Value equal to the value of the earned Performance Units/Shares at the close of the applicable Performance Period) or in a combination
thereof. 

        (f)    Cancellation of Performance Units/Shares.    On the date set forth in the Award Agreement, all unearned or
unvested Performance Units/Shares will be forfeited to the Company, and again will be available for grant under the Plan. 

        10.    Deferred Stock Units.    Deferred Stock Units shall consist of a Restricted Stock, Performance Share or
Performance Unit Award that the Administrator, in its sole discretion permits to be paid out in installments or on a deferred basis, in accordance with rules and procedures established by the
Administrator. Deferred Stock Units may be settled, at the discretion of the Administrator, in cash, Shares, or any combination thereof. 

        11.    Formula Option Grants to Outside Directors.    All grants of Options to Outside Directors pursuant to this
Section will be automatic and nondiscretionary, except as otherwise provided herein, and will be made in accordance with the following provisions: 

        (a)    Type of Option.    All Options granted pursuant to this Section will be Nonstatutory Stock Options and, except
as otherwise provided herein, will be subject to the other terms and conditions of the Plan. 

        (b)    No Discretion.    No person will have any discretion to select which Outside Directors will be granted Options
under this Section or to determine the number of Shares to be covered by such Options (except as provided in Sections 11(f) and 14). 

        (c)    First Option.    Each person who first becomes an Outside Director following the Registration Date will be
automatically granted an Option to purchase 30,000 Shares (the "First Option") on or about the date on which such person first becomes an Outside
Director, whether through election by the stockholders of the Company or appointment by the Board to fill a vacancy; provided, however, that an Inside Director who ceases to be an Inside Director, but
who remains a Director, will not receive a First Option. 

        (d)    Subsequent Option.    Each Outside Director will be automatically granted an Option to purchase 12,000 Shares
(a "Subsequent Option") on each date of the annual meeting of the stockholders of the Company beginning in 2005, if as of such date, he or she will have
served on the Board for at least the preceding six (6) months. 

        (e)    Terms.    The terms of each Option granted pursuant to this Section will be as follows: 

          (i)  The
term of the Option will be ten (10) years. 

         (ii)  The
exercise price per Share will be 100% of the Fair Market Value per Share on the date of grant of the Option. 

        (iii)  Subject
to Section 14, the First Option will vest and become exercisable as to 25% of the Shares on the first anniversary of the date of grant and as to
1/48th of the Shares each month thereafter, provided that the Participant continues to serve as a Director through each such date. 

11

 

        (iv)  Subject
to Section 14, the Subsequent Option will vest and become exercisable as to 1/12th of the shares each month following the
date of grant, provided that the Participant continues to serve as a Director through such date. 

        (f)    Amendment.    The Administrator in its discretion may change the number of Shares subject to the First Options
and Subsequent Options. 

        (g)    Exercise of Options.    The rules of Sections 6(d) also will apply to Options granted pursuant to this
Section 11. To the extent that the Participant was not entitled to exercise an Option on the date of termination, or if he or she does not exercise an Option (to the extent otherwise so
entitled) granted pursuant to this Section 11 within the time specified in the applicable Award Agreement, the Option shall terminate. 

        12.    Leaves of Absence.    Unless the Administrator provides otherwise, vesting of Awards granted hereunder will be
suspended during any unpaid leave of absence. A Service Provider will not cease to be an Employee in the case of (i) any leave of absence approved by the Company or (ii) transfers
between locations of the Company or between the Company, its Parent, or any Subsidiary. For purposes of Incentive Stock Options, no such leave may exceed ninety (90) days, unless reemployment
upon expiration of such leave is guaranteed by statute or contract. If reemployment upon expiration of a leave of absence approved by the Company is not so guaranteed, then three months following the
91st day of such leave any Incentive Stock Option held by the Participant will cease to be treated as an Incentive Stock Option and will be treated for tax purposes as a Nonstatutory
Stock Option. 

        13.    Transferability of Awards.    Unless determined otherwise by the Administrator, an Award may not be sold,
pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Participant,
only by the Participant. If the Administrator makes an Award transferable, such Award will contain such additional terms and conditions as the Administrator deems appropriate. 

        14.    Adjustments; Dissolution or Liquidation; Merger or Change in Control.    

        (a)    Adjustments.    In the event that any dividend or other distribution (whether in the form of cash, Shares,
other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or
exchange of Shares or other securities of the Company, or other change in the corporate structure of the Company affecting the Shares occurs such that the Administrator (in its sole discretion)
determines an adjustment is appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, then the Administrator shall, in
such manner as it may deem equitable, adjust the number and class of Shares that may be delivered under the Plan and the number, class, and price of Shares covered by each outstanding Award, the
numerical Share limits in Sections 3 and 6 of the Plan and the number of Shares issuable pursuant to Options to be granted under Section 11. 

        (b)    Dissolution or Liquidation.    In the event of the proposed dissolution or liquidation of the Company, the
Administrator will notify each Participant as soon as practicable prior to the effective date of such proposed transaction. The Administrator in its discretion may provide for a Participant to have
the right to exercise his or her Award, to the extent applicable, until ten (10) days prior to such transaction as to all of the Awarded Stock covered thereby, including Shares as to which the
Award would not otherwise be exercisable. In addition, the Administrator may provide that any Company repurchase option or forfeiture rights applicable to any Award shall lapse 100%, and that any
Award vesting shall accelerate 100%, provided the proposed dissolution or liquidation takes place at the time and in the manner contemplated. To the extent an Award has not been previously exercised
or settled, the Award will terminate immediately prior to the consummation of such proposed action. 

12

 

        (c)    Change in Control.    

        (i)    Stock Options and SARS.    In the event of a merger or Change in Control, each outstanding Option and SAR shall
be assumed or an equivalent option or SAR substituted by the successor corporation or a Parent or Subsidiary of the successor corporation. Unless determined otherwise by the Administrator, in the
event that the successor corporation refuses to assume or substitute for the Option or SAR, the Participant shall fully vest in and have the right to exercise the Option or SAR as to all of the
Awarded Stock, including Shares as to which the Award would not otherwise be vested or exercisable. If an Option or SAR is not assumed or substituted in the event of a merger or Change in Control, the
Administrator shall notify the Participant in writing or electronically that the Option or SAR shall be exercisable, to the extent vested, for a period of up to fifteen (15) days from the date
of such notice, and the Option or SAR shall terminate upon the expiration of such period. For the purposes of this paragraph, the Option or SAR shall be considered assumed if, following the merger or
Change in Control, the option or stock appreciation right confers the right to purchase or receive, for each Share of Awarded Stock subject to the Option or SAR immediately prior to the merger or
Change in Control, the consideration (whether stock, cash, or other securities or property) received in the merger or Change in Control by holders of Common Stock for each Share held on the effective
date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if
such consideration received in the merger or Change in Control is not solely common stock of the successor corporation
or its Parent, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of the Option or SAR, for each Share of Awarded
Stock subject to the Option or SAR, to be solely common stock of the successor corporation or its Parent equal in fair market value to the per share consideration received by holders of Common Stock
in the merger or Change in Control. Notwithstanding anything herein to the contrary, an Award that vests, is earned or paid-out upon the satisfaction of one or more performance goals will
not be considered assumed if the Company or its successor modifies any of such performance goals without the Participant's consent; provided, however, a modification to such performance goals only to
reflect the successor corporation's post-merger or post-Change in Control corporate structure will not be deemed to invalidate an otherwise valid Award assumption. 

        (ii)    Restricted Stock, Performance Shares, Performance Units, and Deferred Stock Units.    In the event of a merger
or Change in Control, each outstanding Award of Restricted Stock, Performance Shares, Performance Units, and Deferred Stock Units shall be assumed or an equivalent Restricted Stock, Performance Share,
Performance Unit, or Deferred Stock Unit award substituted by the successor corporation or a Parent or Subsidiary of the successor corporation. Unless determined otherwise by the Administrator, in the
event that the successor corporation refuses to assume or substitute for the Award, the Participant shall fully vest in the Award including as to Shares which would not otherwise be vested or earned.
For the purposes of this paragraph, a Restricted Stock, Performance Share, Performance Unit, and Deferred Stock Unit award shall be considered assumed if, following the merger or Change in Control,
the award confers the right to purchase or receive, for each Share subject to the Award immediately prior to the merger or Change in Control, the consideration (whether stock, cash, or other
securities or property) received in the merger or Change in Control by holders of Common Stock for each Share held on the effective date of the transaction (and if holders were offered a choice of
consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the merger or Change in Control is
not solely common stock of the successor corporation or its Parent, the Administrator may, with the consent of the successor 

13

 

corporation,
provide for the consideration to be received, for each Share and each unit/right to acquire a Share subject to the Award, to be solely common stock of the successor corporation or its
Parent equal in fair market value to the per share consideration received by holders of Common Stock in the merger or Change in Control. Notwithstanding anything herein to the contrary, an Award that
vests, is earned or paid-out upon the satisfaction of one or more performance goals will not be considered assumed if the Company or its successor modifies any of such performance goals
without the Participant's consent; provided, however, a modification to such performance goals only to reflect the successor corporation's post-merger or post-Change in Control
corporate structure will not be deemed to invalidate an otherwise valid Award assumption. 

        (iii)    Outside Director Awards.    Notwithstanding any provision of Section 14(c)(i) or 14(c)(ii) to the
contrary, with respect to Awards granted to an Outside Director that are assumed or substituted for, if on the date of or following such assumption or substitution the Participant's status as a
Director or a director of the successor corporation, as applicable, is terminated other than upon a voluntary resignation by the Participant, then the Participant will fully vest in and have the right
to exercise his or her Options and Stock Appreciation Rights as to all of the Awarded Stock, including Shares as to which such Awards would not otherwise be vested or exercisable, all restrictions on
Restricted Stock
and Deferred Stock Units, as applicable, will lapse, and, with respect to Performance Shares and Performance Units (and related Deferred Stock Units), all performance goals or other vesting criteria
will be deemed achieved at target levels and all other terms and conditions met. 

        15.    No Effect on Employment or Service.    Neither the Plan nor any Award will confer upon a Participant any right
with respect to continuing the Participant's relationship as a Service Provider with the Company, nor will they interfere in any way with the Participant's right or the Company's right to terminate
such relationship at any time, with or without cause, to the extent permitted by Applicable Laws. 

        16.    Date of Grant.    The date of grant of an Award will be, for all purposes, the date on which the Administrator
makes the determination granting such Award, or such other later date as is determined by the Administrator. Notice of the determination will be provided to each Participant within a reasonable time
after the date of such grant. 

        17.    Term of Plan.    Subject to Section 21 of the Plan, the Plan will become effective upon its adoption by
the Board. It will continue in effect for a term of ten (10) years unless terminated earlier under Section 18 of the Plan. 

        18.    Amendment and Termination of the Plan.    

        (a)    Amendment and Termination.    The Board may at any time amend, alter, suspend or terminate the Plan. 

        (b)    Stockholder Approval.    The Company will obtain stockholder approval of any Plan amendment to the extent
necessary and desirable to comply with Applicable Laws. 

        (c)    Effect of Amendment or Termination.    No amendment, alteration, suspension or termination of the Plan will
impair the rights of any Participant, unless mutually agreed otherwise between the Participant and the Administrator, which agreement must be in writing and signed by the Participant and the Company.
Termination of the Plan will not affect the Administrator's ability to exercise the powers granted to it hereunder with respect to Awards granted under the Plan prior to the date of such termination. 

14

 

        19.    Conditions Upon Issuance of Shares.    

        (a)    Legal Compliance.    Shares will not be issued pursuant to the exercise of an Award unless the exercise of such
Award and the issuance and delivery of such Shares will comply with Applicable Laws and will be further subject to the approval of counsel for the Company with respect to such compliance. 

        (b)    Investment Representations.    As a condition to the exercise, receipt, or settlement of an Award, the Company
may require the person exercising or receiving such Award or settlement to represent and warrant at the time of any such exercise or receipt that the Shares are being purchased only for investment and
without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required. 

        20.    Inability to Obtain Authority.    The inability of the Company to obtain authority from any regulatory body
having jurisdiction, which authority is deemed by the Company's counsel to be necessary to the lawful issuance and sale of any Shares hereunder, will relieve the Company of any liability in respect of
the failure to issue or sell such Shares as to which such requisite authority will not have been obtained. 

        21.    Stockholder Approval.    The Plan will be subject to approval by the stockholders of the Company within twelve
(12) months after the date the Plan is adopted. Such stockholder approval will be obtained in the manner and to the degree required under Applicable Laws. 

15

QuickLinks

Exhibit 10.3

IKANOS COMMUNICATIONS 2004 EQUITY INCENTIVE PLANQuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.4    
    

 
 

IKANOS COMMUNICATIONS    
    
    2004 EMPLOYEE STOCK PURCHASE PLAN    
    

        The following constitutes the provisions of the 2004 Employee Stock Purchase Plan of Ikanos Communications. 

        1.    Purpose.    The purpose of the Plan is to provide Employees with an opportunity to purchase Common Stock through
accumulated payroll deductions. It is the intention of the Company to have the Plan qualify as an "employee stock purchase plan" under Section 423 of the Code. The provisions of the Plan,
accordingly, will be construed so as to extend and limit Plan participation in a manner that is consistent with the requirements of that section of the Code. 

        2.    Definitions.    

        (a)   "Administrator" means the Board or any committee thereof designated by the Board in accordance with Section 14. 

        (b)   "Board" means the Board of Directors of the Company. 

        (c)   "Change of Control" means the occurrence of any of the following events: 

          (i)  Any
"person" (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the "beneficial owner" (as defined in Rule 13d-3
of the Exchange Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the total voting power represented by the Company's then outstanding voting
securities; or 

         (ii)  The
consummation of the sale or disposition by the Company of all or substantially all of the Company's assets; 

        (iii)  The
consummation of a merger or consolidation of the Company, with any other corporation, other than a merger or consolidation which would result in the voting
securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its
parent) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company, or such surviving entity or its parent outstanding immediately after such merger or
consolidation; or 

        (iv)  A
change in the composition of the Board, as a result of which fewer than a majority of the Directors are Incumbent Directors. "Incumbent
Directors" means Directors who either (A) are Directors as of the effective date of the Plan (pursuant to Section 23), or (B) are elected, or nominated for
election, to the Board with the affirmative votes of at least a majority of those Directors whose election or nomination was not in connection with any transaction described in subsections (i),
(ii) or (iii) or in connection with an actual or threatened proxy contest relating to the election of Directors of the Company. 

        (d)   "Code" means the Internal Revenue Code of 1986, as amended. Any reference to a section of the Code herein will be a
reference to any successor or amended section of the Code. 

        (e)   "Common Stock" means the common stock of the Company. 

        (f)    "Company" means Ikanos Communications, a Delaware corporation. 

        (g)   "Compensation" means an Employee's base straight time gross earnings, commissions (to the extent such commissions are an
integral, recurring part of compensation), overtime and shift premium, but exclusive of payments for incentive compensation, bonuses and other compensation. 

        (h)   "Designated Subsidiary" means any Subsidiary that has been designated by the Administrator from time to time in its sole
discretion as eligible to participate in the Plan. 

 

        (i)    "Director" means a member of the Board. 

        (j)    "Employee" means any individual who is a common law employee of an Employer and is customarily employed for at least
twenty (20) hours per week and more than five (5) months in any calendar year by the Employer. For purposes of the Plan, the employment relationship will be treated as continuing intact
while the individual is on sick leave or other leave of absence approved by the Employer. Where the period of leave exceeds ninety (90) days and the individual's right to reemployment is not
guaranteed either by statute or by contract, the employment relationship will be deemed to have terminated on the 91st day of such leave. The Administrator, in its discretion, from time to time may,
prior to an Enrollment Date for all options to be granted on such Enrollment Date, determine (on a uniform and nondiscriminatory basis) that the definition of Employee will or will not include an
individual if he or she: (1) has not completed at least two years of service since his or her last hire date (or such lesser period of time as may be determined by the Administrator in its
discretion), (2) customarily works not more than 20 hours per week (or such lesser period of time as may be determined by the Administrator in its discretion), (3) customarily
works not more than 5 months per calendar year (or such lesser period of time as may be determined by the Administrator in its discretion), (4) is an officer or other manager, or
(5) is a highly compensated employee under Section 414(q) of the Code. 

        (k)   "Employer" means any one or all of the Company and its Designated Subsidiaries. 

        (l)    "Enrollment Date" means the first Trading Day of each Offering Period. 

        (m)  "Exchange Act" means the Securities Exchange Act of 1934, as amended, including the rules and regulations promulgated
thereunder. 

        (n)   "Exercise Date" means the first Trading Day on or after May 1 and November 1 of each year. The first
Exercise Date will occur on the first Trading Day on or after May 1, 2005. 

        (o)   "Fair Market Value" means, as of any date, the value of Common Stock determined as follows: 

          (i)  If
the Common Stock is listed on any established stock exchange or a national market system, including without limitation the Nasdaq National Market or The Nasdaq
SmallCap Market of The Nasdaq Stock Market, its Fair Market Value will be the closing sales price for the Common Stock (or the closing bid, if no sales were reported) as quoted on such exchange or
system on the date of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; 

         (ii)  If
the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, its Fair Market Value will be the mean of the closing bid
and asked prices for the Common Stock on the date of determination, as reported in The Wall Street Journal or such other source as the Administrator
deems reliable; 

        (iii)  In
the absence of an established market for the Common Stock, its Fair Market Value will be determined in good faith by the Administrator; or 

        (iv)  For
purposes of the Enrollment Date of the first Offering Period under the Plan, the Fair Market Value will be the initial price to the public as set forth in the final
prospectus deemed to be included within the registration statement on Form S-1 filed with the Securities and Exchange Commission for the initial public offering of the Common Stock
(the "Registration Statement"). 

        (p)   "Offering Periods" means the periods of approximately twenty-four (24) months during which an option
granted pursuant to the Plan may be exercised, commencing on the first Trading Day on or after May 1 and November 1 of each year and terminating on the first Trading Day on 

2

 

or
after the May 1 and November 1 Offering Period commencement date approximately twenty-four (24) months later; provided, however, that the first Offering Period
under the Plan will commence with the first Trading Day on or after the date on which the Securities and Exchange Commission declares the Company's Registration Statement effective and ending on the
first Trading Day on or after the earlier of (i) November 1, 2006 or (ii) twenty-seven (27) months from the beginning of the first Offering Period; and provided, further,
that the second Offering Period under the Plan will commence on the first Trading Day on or after May 1, 2005. The duration and timing of Offering Periods may be changed pursuant to
Section 4 of this Plan. 

        (q)   "Parent" means a "parent corporation," whether now or hereafter existing, as defined in Section 424(e) of the
Code. 

        (r)   "Plan" means this 2004 Employee Stock Purchase Plan. 

        (s)   "Purchase Period" means the approximately six (6) month period commencing on one Exercise Date and ending with the
next Exercise Date, except that the first Purchase Period of any Offering Period will commence on the Enrollment Date and end with the next Exercise Date. 

        (t)    "Purchase Price" means an amount equal to eighty-five percent (85%) of the Fair Market Value of a share of
Common Stock on the Enrollment Date or on the Exercise Date, whichever is lower; provided however, that the Purchase Price may be adjusted by the Administrator pursuant to Section 20. 

        (u)   "Subsidiary" means a "subsidiary corporation," whether now or hereafter existing, as defined in Section 424(f) of
the Code. 

        (v)   "Trading Day" means a day on which the U.S. national stock exchanges and the Nasdaq System are open for trading. 

        3.    Eligibility.    

        (a)    First Offering Period.    Any individual who is an Employee immediately prior to the first Offering Period
under the Plan will be automatically enrolled in the first Offering Period. 

        (b)    Subsequent Offering Periods.    Any individual who is an Employee as of the Enrollment Date of any future
Offering Period will be eligible to participate in such Offering Period, subject to the requirements of Section 5. 

        (c)    Limitations.    Any provisions of the Plan to the contrary notwithstanding, no Employee will be granted an
option under the Plan (i) to the extent that, immediately after the grant, such Employee (or any other person whose stock would be attributed to such Employee pursuant to Section 424(d)
of the Code) would own capital stock of the Company or any Parent or Subsidiary of the Company and/or hold outstanding options to purchase such stock possessing five percent (5%) or more of the total
combined voting power or value of all classes of the capital stock of the Company or of any Parent or Subsidiary of the Company, or (ii) to the extent that his or her rights to purchase stock
under all
employee stock purchase plans (as defined in Section 423 of the Code) of the Company or any Parent or Subsidiary of the Company accrues at a rate which exceeds twenty-five thousand
dollars ($25,000) worth of stock (determined at the Fair Market Value of the stock at the time such option is granted) for each calendar year in which such option is outstanding at any time. 

        4.    Offering Periods.    The Plan will be implemented by consecutive, overlapping Offering Periods with a new
Offering Period commencing on the first Trading Day on or after May 1 and November 1 of each year, or on such other date as the Administrator will determine, and continuing thereafter
until terminated in accordance with Section 20; provided, however, that the first Offering Period under the Plan will commence with the first Trading Day on or after the date on which the
Securities and 

3

 

Exchange
Commission declares the Company's Registration Statement effective and ending on the first Trading Day on or after the earlier of (i) November 1, 2006 or
(ii) twenty-seven (27) months from the beginning of the first Offering Period; and provided, further, that the second Offering Period under the Plan will commence on the first Trading
Day on or after May 1, 2005. The Administrator will have the power to change the duration of Offering Periods (including the commencement dates thereof) with respect to future offerings without
stockholder approval if such change is announced prior to the scheduled beginning of the first Offering Period to be affected thereafter. 

        5.    Participation.    

        (a)    First Offering Period.    An Employee who has become a participant in the first Offering Period under the Plan
pursuant to Section 3(a) will be entitled to continue his or her participation in such Offering Period only if he or she submits to the Company's payroll office (or its designee) a properly
completed subscription agreement authorizing payroll deductions in the form provided by the Administrator for such purpose (i) no earlier than the effective date of the filing of the Company's
Registration Statement on Form S-8 with respect to the shares of Common Stock issuable under the Plan (the "Effective Date") and
(ii) no later than five (5) business days from the Effective Date or such other period of time as the Administrator may determine (the "Enrollment
Window"). A participant's failure to submit the subscription agreement during the Enrollment Window pursuant to this Section 5(a) will result in the automatic
termination of his or her participation in the first Offering Period under the Plan. 

        (b)    Subsequent Offering Periods.    An Employee who is eligible to participate in the Plan pursuant to
Section 3(b) may become a participant by (i) submitting to the Company's payroll office (or its designee), on or before a date prescribed by the Administrator prior to an applicable
Enrollment Date, a properly completed subscription agreement authorizing payroll deductions in the form provided by the Administrator for such purpose, or (ii) following an electronic or other
enrollment procedure prescribed by the Administrator. 

        6.    Payroll Deductions.    

        (a)   At
the time a participant enrolls in the Plan pursuant to Section 5, he or she will elect to have payroll deductions made on each payday during the Offering
Period in an amount not exceeding 15% of the Compensation which he or she receives on each such payday. 

        (b)   Payroll
deductions authorized by a participant will commence on the first payday following the Enrollment Date and will end on the last payday in the Offering Period to
which such authorization is applicable, unless sooner terminated by the participant as provided in Section 10; provided, however, that for the first Offering Period under the Plan, payroll
deductions will commence on the first payday on or following the end of the Enrollment Window. 

        (c)   All
payroll deductions made for a participant will be credited to his or her account under the Plan and will be withheld in whole percentages only. A participant may not
make any additional payments into such account. 

        (d)   A
participant may discontinue his or her participation in the Plan as provided in Section 10, or may change the rate of his or her payroll deductions during the
Offering Period by (i) properly completing and submitting to the Company's payroll office (or its designee), on or before a date prescribed by the Administrator prior to an applicable Exercise
Date, a new subscription agreement authorizing the change in payroll deduction rate in the form provided by the Administrator for such purpose, or (ii) following an electronic or other
procedure prescribed by the Administrator. If a participant has not followed such procedures to change the rate of payroll deductions, the rate of his or her payroll deductions will continue at the
originally elected rate throughout the Offering Period and future Offering Periods (unless terminated as provided in Section 10). The Administrator may, in its sole discretion, limit the nature
and/or number of 

4

 

payroll
deduction rate changes that may be made by participants during any Offering Period or Purchase Period. Any change in payroll deduction rate made pursuant to this Section 6(d) will be
effective as of the first full payroll period following five (5) business days after the date on which the change is made by the participant (unless the Administrator, in its sole discretion,
elects to process a given change in payroll deduction rate more quickly). 

        (e)   Notwithstanding
the foregoing, to the extent necessary to comply with Section 423(b)(8) of the Code and Section 3(c), a participant's payroll deductions
may be decreased to zero percent (0%) at any time during a Purchase Period. Payroll deductions will recommence at the rate originally elected by the participant effective as of the beginning of the
first Purchase Period which is scheduled to end in the following calendar year, unless terminated by the participant as provided in Section 10. 

        (f)    At
the time the option is exercised, in whole or in part, or at the time some or all of the Company's Common Stock issued under the Plan is disposed of, the participant
must make adequate provision for the Company's federal, state, or other tax withholding obligations, if any, which arise upon the exercise of the option or the disposition of the Common Stock. At any
time, the Company may, but will not be obligated to, withhold from the participant's compensation the amount necessary for the Company to meet applicable withholding obligations, including any
withholding required to make available to the Company any tax deductions or benefits attributable to the sale or early disposition of Common Stock by the Employee. 

        7.    Grant of Option.    On the Enrollment Date of each Offering Period, each Employee participating in such Offering
Period will be granted an option to purchase on each Exercise Date during such Offering Period (at the applicable Purchase Price) up to a number of shares of Common Stock determined by dividing such
participant's payroll deductions accumulated prior to such Exercise Date and retained in the participant's account as of the Exercise Date by the applicable Purchase Price; provided that in no event
will a participant be permitted to purchase during each Purchase Period more than 1,500 (post-split) shares of Common Stock (subject to any adjustment pursuant to Section 19), and
provided further that such purchase will be subject to the limitations set forth in Sections 3(c) and 13. The Employee may accept the grant of such option (i) with respect to the first
Offering Period under the Plan, by submitting a properly completed subscription agreement in accordance with the requirements of Section 5(a) on or before the last day of the Enrollment Window,
and (ii) with respect to any future Offering Period under the Plan, by electing to participate in the Plan in accordance with the requirements of Section 5(b). The Administrator may, for
future Offering Periods, increase or decrease, in its absolute discretion, the maximum number of shares of Common Stock that a participant may purchase during each Purchase Period of such Offering
Period. Exercise of the option will occur as provided in Section 8, unless the participant has withdrawn pursuant to Section 10. The option will expire on the last day of the Offering
Period. 

        8.    Exercise of Option.    

        (a)   Unless
a participant withdraws from the Plan as provided in Section 10, his or her option for the purchase of shares of Common Stock will be exercised
automatically on the Exercise Date, and the maximum number of full shares subject to option will be purchased for such participant at the applicable Purchase Price with the accumulated payroll
deductions in his or her account. No fractional shares of Common Stock will be purchased; any payroll deductions accumulated in a participant's account which are not sufficient to purchase a full
share will be retained in the participant's account for the subsequent Purchase Period or Offering Period, subject to earlier withdrawal by the participant as provided in Section 10. Any other
monies left over in a participant's account after the Exercise Date will be returned to the participant. During a participant's lifetime, a participant's option to purchase shares hereunder is
exercisable only by him or her. 

5

 

        (b)   Notwithstanding
any contrary Plan provision, if the Administrator determines that, on a given Exercise Date, the number of shares of Common Stock with respect to which
options are to be exercised may exceed (i) the number of shares of Common Stock that were available for sale under the Plan on the Enrollment Date of the applicable Offering Period, or
(ii) the number of shares of Common Stock available for sale under the Plan on such Exercise Date, the Administrator may in its sole discretion (x) provide that the Company will make a
pro rata allocation of the shares of Common Stock available for purchase on such Enrollment Date or Exercise Date, as applicable, in as uniform a manner as will be practicable and as it will determine
in its sole discretion to be equitable among all participants exercising options to purchase Common Stock on such Exercise Date, and continue all Offering Periods then in effect, or (y) provide
that the Company will make a pro rata allocation of the shares of Common Stock available for purchase on such Enrollment Date or Exercise Date, as applicable, in as uniform a manner as will be
practicable and as it will determine in its sole discretion to be equitable among all participants exercising options to purchase Common Stock on such Exercise Date, and terminate any or all Offering
Periods then in effect pursuant to Section 20. The Company may make pro rata allocation of the shares of Common Stock available on the Enrollment Date of any applicable Offering Period pursuant
to the preceding sentence, notwithstanding any authorization of additional shares of Common Stock for issuance under the Plan by the Company's shareholders subsequent to such Enrollment Date. 

        9.    Delivery.    As soon as administratively practicable after each Exercise Date on which a purchase of shares of
Common Stock occurs, the Company will arrange the delivery to each participant, as appropriate, the shares purchased upon exercise of his or her option in a form determined by the Administrator (in
its sole discretion) and pursuant to rules established by the Administrator. No participant will have any voting, dividend, or other shareholder rights with respect to shares of Common Stock subject
to any option granted under the Plan until such shares have been purchased and delivered to the participant as provided in this Section 9. 

        10.    Withdrawal.    

        (a)   Under
procedures established by the Administrator, a participant may withdraw all but not less than all the payroll deductions credited to his or her account and not yet
used to exercise his or her option under the Plan at any time by (i) submitting to the Company's payroll office (or its designee) a written notice of withdrawal in the form prescribed by the
Administrator for such purpose, or (ii) following an electronic or other withdrawal procedure prescribed by the Administrator. All of the participant's payroll deductions credited to his or her
account will be paid to such participant as promptly as practicable after the effective date of his or her withdrawal and such participant's option for the Offering Period will be automatically
terminated, and no further payroll deductions for the purchase of shares will be made for such Offering Period. If a participant withdraws from an Offering Period, payroll deductions will not resume
at the beginning of the succeeding Offering Period unless the participant re-enrolls in the Plan in accordance with the provisions of Section 5. 

        (b)   A
participant's withdrawal from an Offering Period will not have any effect upon his or her eligibility to participate in any similar plan which may hereafter be adopted
by the Company or in succeeding Offering Periods which commence after the termination of the Offering Period from which the participant withdraws. 

        11.    Termination of Employment.    Upon a participant's ceasing to be an Employee, for any reason, he or she will be
deemed to have elected to withdraw from the Plan and the payroll deductions credited to such participant's account during the Offering Period but not yet used to purchase shares of Common Stock under
the Plan will be returned to such participant or, in the case of his or her death, to the person or persons entitled thereto under Section 15, and such participant's option will be 

6

 

automatically
terminated. The preceding sentence notwithstanding, a participant who receives payment in lieu of notice of termination of employment will be treated as continuing to be an Employee for
the participant's customary number of hours per week of employment during the period in which the participant is subject to such payment in lieu of notice. 

        12.    Interest.    No interest will accrue on the payroll deductions of a participant in the Plan. 

        13.    Stock.    

        (a)   Subject
to adjustment upon changes in capitalization of the Company as provided in Section 19, the maximum number of shares of Common Stock which will be made
available for sale under the Plan will be 1,000,000 (post-split) shares of Common Stock plus an annual increase to be added on the first day of the Company's fiscal year beginning in
fiscal year 2005 and ending in 2014, equal to the lesser of (i) [2.5]% of the outstanding shares of Common Stock on such
date; or (ii) 1,500,000 shares; or (iii) an amount determined by the Board. 

        (b)   Shares
of Common Stock to be delivered to a participant under the Plan will be registered in the name of the participant or in the name of the participant and his or her
spouse. 

        14.    Administration.    The Board or a committee of members of the Board who will be appointed from time to time by,
and will serve at the pleasure of, the Board, will administer the Plan. The Administrator will have full and exclusive discretionary authority to construe, interpret and apply the terms of the Plan,
to determine eligibility, to adjudicate all disputed claims filed under the Plan and to establish such procedures that it deems necessary for administration of the Plan (including, without limitation,
to adopt such procedures and sub-plans as are necessary or appropriate to permit the participation in the Plan by employees who are foreign nationals or employed outside the United
States). The Administrator, in its sole discretion and on such terms and conditions as it may provide, may delegate to one or more individuals all or any part of its authority and powers under the
Plan. Every finding, decision and determination made by the Administrator (or its designee) will, to the full extent permitted by law, be final and binding upon all parties. 

        15.    Designation of Beneficiary.    

        (a)   A
participant may designate a beneficiary who is to receive any shares of Common Stock and cash, if any, from the participant's account under the Plan in the event of
such participant's death subsequent to an Exercise Date on which the option is exercised but prior to delivery to such participant of such shares and cash. In addition, a participant may designate a
beneficiary who is to receive any cash from the participant's account under the Plan in the event of such participant's death prior to exercise of the option. If a participant is married and the
designated beneficiary is not the spouse, spousal consent will be required for such designation to be effective. 

        (b)   Such
designation of beneficiary may be changed by the participant at any time. In the event of the death of a participant and in the absence of a beneficiary validly
designated under the Plan who is living at the time of such participant's death, the Company will deliver such shares and/or cash to the executor or administrator of the estate of the participant, or
if no such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may deliver such shares and/or cash to the spouse or to any one or more
dependents or relatives of the participant, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate. 

        (c)   All
beneficiary designations under this Section 15 will be made in such form and manner as the Administrator may prescribe from time to time. 

        16.    Transferability.    Neither payroll deductions credited to a participant's account nor any rights with regard
to the exercise of an option or to receive shares of Common Stock under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of 

7

 

descent
and distribution or as provided in Section 15) by the participant. Any such attempt at assignment, transfer, pledge or other disposition will be without effect, except that the Company
may treat such act as an election to withdraw from an Offering Period in accordance with Section 10. 

        17.    Use of Funds.    All payroll deductions received or held by the Company under the Plan may be used by the
Company for any corporate purpose, and the Company will not be obligated to segregate such payroll deductions. Until shares of Common Stock are issued under the Plan (as evidenced by the appropriate
entry on the books of the Company or of a duly authorized transfer agent of the Company), a participant will only have the rights of an unsecured creditor with respect to such shares. 

        18.    Reports.    Individual accounts will be maintained for each participant in the Plan. Statements of account will
be given to participating Employees at least annually, which statements will set forth the
amounts of payroll deductions, the Purchase Price, the number of shares of Common Stock purchased and the remaining cash balance, if any. 

        19.    Adjustments, Dissolution, Liquidation or Change of Control.    

        (a)    Adjustments.    In the event that any dividend or other distribution (whether in the form of cash, Common
Stock, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination,
repurchase, or exchange of Common Stock or other securities of the Company, or other change in the corporate structure of the Company affecting the Common Stock such that an adjustment is determined
by the Administrator (in its sole discretion) to be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, then the
Administrator will, in such manner as it may deem equitable, adjust the number and class of Common Stock which may be delivered under the Plan, the Purchase Price per share and the number of shares of
Common Stock covered by each option under the Plan which has not yet been exercised, and the numerical limits of Sections 7 and 13. 

        (b)    Dissolution or Liquidation.    In the event of the proposed dissolution or liquidation of the Company, the
Offering Period then in progress will be shortened by setting a new Exercise Date (the "New Exercise Date"), and will terminate immediately prior to the
consummation of such proposed dissolution or liquidation, unless provided otherwise by the Board. The New Exercise Date will be before the date of the Company's proposed dissolution or liquidation.
The Board will notify each participant in writing, at least ten (10) business days prior to the New Exercise Date, that the Exercise Date for the participant's option has been changed to the
New Exercise Date and that the participant's option will be exercised automatically on the New Exercise Date, unless prior to such date the participant has withdrawn from the Offering Period as
provided in Section 10. 

        (c)    Change of Control.    In the event of a Change of Control, each outstanding option will be assumed or an
equivalent option substituted by the successor corporation or a Parent or Subsidiary of the successor corporation. In the event that the successor corporation refuses to assume or substitute for the
option, any Purchase Periods then in progress will be shortened by setting a new Exercise Date (the "New Exercise Date") and any Offering Periods then
in progress will end on the New Exercise Date. The New Exercise Date will be before the date of the Company's proposed Change of Control. The Board will notify each participant in writing, at least
ten (10) business days prior to the New Exercise Date, that the Exercise Date for the participant's option has been changed to the New Exercise Date and that the participant's option will be
exercised automatically on the New Exercise Date, unless prior to such date the participant has withdrawn from the Offering Period as provided in Section 10. 

8

 

        20.    Amendment or Termination.    

        (a)   The
Administrator may at any time and for any reason terminate or amend the Plan. Except as provided in Section 19, no such termination can affect options
previously granted under the Plan, provided that an Offering Period may be terminated by the Administrator on any Exercise Date if the Administrator determines that the termination or suspension of
the Plan is in the best interests of the Company and its stockholders. Except as provided in Section 19 and this Section 20, no amendment may make any change in any option theretofore
granted which adversely affects the rights of any participant. To the extent necessary to comply with Section 423 of the Code (or any successor rule or provision or any other applicable law,
regulation or stock exchange rule), the Company will obtain stockholder approval in such a manner and to such a degree as required. 

        (b)   Without
stockholder consent and without regard to whether any participant rights may be considered to have been "adversely affected," the Administrator will be entitled
to change the Offering Periods, limit the frequency and/or number of changes in the amount withheld during an Offering Period, establish the exchange ratio applicable to amounts withheld in a currency
other than U.S. dollars, permit payroll withholding in excess of the amount designated by a participant in order to adjust for delays or mistakes in the Company's processing of properly completed
withholding elections, establish reasonable waiting and adjustment periods and/or accounting and crediting procedures to ensure that amounts applied toward the purchase of Common Stock for each
participant properly correspond with amounts withheld from the participant's Compensation, and establish such other limitations or procedures as the Administrator determines in its sole discretion
advisable which are consistent with the Plan. 

        (c)   In
the event the Administrator determines that the ongoing operation of the Plan may result in unfavorable financial accounting consequences, the Board may, in its
discretion and, to the extent necessary or desirable, modify or amend the Plan to reduce or eliminate such accounting consequence including: 

          (i)  altering
the Purchase Price for any Offering Period including an Offering Period underway at the time of the change in Purchase Price; 

         (ii)  shortening
any Offering Period so the Offering Period ends on a new Exercise Date, including an Offering Period underway at the time of the Board action; and 

        (iii)  allocating
shares. 

Such
modifications or amendments will not require stockholder approval or the consent of any Plan participants. 

        21.    Notices.    All notices or other communications by a participant to the Company under or in connection with the
Plan will be deemed to have been duly given when received in the form specified by the Company at the location, or by the person, designated by the Company for the receipt thereof. 

        22.    Conditions Upon Issuance of Shares.    Shares of Common Stock will not be issued with respect to an option
under the Plan unless the exercise of such option and the issuance and delivery of such shares pursuant thereto will comply with all applicable provisions of law, domestic or foreign, including,
without limitation, the Securities Act of 1933, as amended, including the rules and regulations promulgated thereunder, the Exchange Act and the requirements of any stock exchange upon which the
shares may then be listed, and will be further subject to the approval of counsel for the Company with respect to such compliance. 

        As
a condition to the exercise of an option, the Company may require the person exercising such option to represent and warrant at the time of any such exercise that the shares are being
purchased only for investment and without any present intention to sell or distribute such shares if, in the opinion 

9

 

of
counsel for the Company, such a representation is required by any of the aforementioned applicable provisions of law. 

        23.    Term of Plan.    The Plan will become effective upon the earlier to occur of its adoption by the Board or its
approval by the stockholders of the Company. It will continue in effect for a term of twenty (20) years, unless sooner terminated under Section 20. 

        24.    Automatic Transfer to Low Price Offering Period.    To the extent permitted by any applicable laws,
regulations, or stock exchange rules if the Fair Market Value of the Common Stock on any Exercise Date in an Offering Period is lower than the Fair Market Value of the Common Stock on the Enrollment
Date of such Offering Period, then all participants in such Offering Period will be automatically withdrawn from such Offering Period immediately after the exercise of their option on such Exercise
Date and automatically re-enrolled in the immediately following Offering Period. 

10

SAMPLE SUBSCRIPTION AGREEMENT  

IKANOS COMMUNICATIONS  

 2004 EMPLOYEE STOCK PURCHASE PLAN  

 SUBSCRIPTION AGREEMENT  

	    
	 	Original Application	 	Offering Date:	 	    

	    
	 	Change in Payroll Deduction Rate	 	 	 	 
	    
	 	Change of Beneficiary(ies)	 	 	 	 

	1.
	                        
hereby elects to participate in the Ikanos Communications 2004 Employee Stock Purchase Plan (the
"Plan") and subscribes to purchase shares of the Company's Common Stock in accordance with this Subscription Agreement and the Plan.

	2.
	I
hereby authorize payroll deductions from each paycheck in the amount of             % of my Compensation on each payday (from 0 to 15%) during the
Offering Period in accordance with the Plan. (Please note that no fractional percentages are permitted.)

	3.
	I
understand that said payroll deductions will be accumulated for the purchase of shares of Common Stock at the applicable Purchase Price determined in accordance with the Plan. I
understand that if I do not withdraw from an Offering Period, any accumulated payroll deductions will be used to automatically exercise my option.

	4.
	I
have received a copy of the complete Plan. I understand that my participation in the Plan is in all respects subject to the terms of the Plan. I understand that my ability to
exercise the option under this Subscription Agreement is subject to shareholder approval of the Plan.

	5.
	Shares
of Common Stock purchased for me under the Plan should be issued in the name(s) of Employee or Employee and Spouse only.

	6.
	I
understand that if I dispose of any shares received by me pursuant to the Plan within 2 years after the Offering Date (the first day of the Offering Period during which I
purchased such shares) or one year after the Exercise Date, I will be treated for federal income tax purposes as having received ordinary income at the time of such disposition in an amount equal to
the excess of the fair market value of the shares at the time such shares were purchased by me over the price which I paid for the shares. I hereby agree to notify the Company
in writing within 30 days after the date of any disposition of my shares and I will make adequate provision for Federal, state or other tax withholding obligations, if any, which arise upon the
disposition of the Common Stock. The Company may, but will not be obligated to, withhold from my compensation the amount necessary to meet any applicable withholding obligation
including any withholding necessary to make available to the Company any tax deductions or benefits attributable to sale or early disposition of Common Stock by me. If I dispose of such shares at any
time after the expiration of the 2-year and 1-year holding periods, I understand that I will be treated for federal income tax purposes as having received income only at the
time of such disposition, and that such income will be taxed as ordinary income only to the extent of an amount equal to the lesser of (1) the excess of the fair market value of the shares at
the time of such disposition over the purchase price which I paid for the shares, or (2) 15% of the fair market value of the shares on the first day of the Offering Period. The remainder of the
gain, if any, recognized on such disposition will be taxed as capital gain.

	7.
	I
hereby agree to be bound by the terms of the Plan. The effectiveness of this Subscription Agreement is dependent upon my eligibility to participate in the Plan. 

 
	8.
	In
the event of my death, I hereby designate the following as my beneficiary(ies) to receive all payments and/or shares due me under the Plan: 

	NAME: (Please print)	 	    

	 	 	(First)	 	(Middle)	 	(Last)
	

    
 Relationship	
 	

    

	

    
 Percentage Benefit	
 	

    
 (Address)
	

NAME: (Please print)	
 	

    

	 	 	(First)	 	(Middle)	 	(Last)
	

    
 Relationship	
 	

    

	

    
 Percentage Benefit	
 	

    
 (Address)
	

Employee's Social

Security Number:	
 	

    

	

Employee's Address:	
 	

    

	

 	
 	

    

	

 	
 	

    

I
UNDERSTAND THAT THIS SUBSCRIPTION AGREEMENT WILL REMAIN IN EFFECT THROUGHOUT SUCCESSIVE OFFERING PERIODS UNLESS TERMINATED BY ME. 

	

Dated:	
 	

    
	
 	

    
 Signature of Employee
	

 	
 	

 	
 	

    
 Spouse's Signature (If beneficiary other than spouse)

2

SAMPLE WITHDRAWAL NOTICE  

IKANOS COMMUNICATIONS  

 2004 EMPLOYEE STOCK PURCHASE PLAN  

 NOTICE OF WITHDRAWAL  

        The undersigned participant in the Offering Period of the Ikanos Communications 2004 Employee Stock Purchase Plan that began
on                        ,            
(the "Offering Date") hereby notifies the Company that he or she hereby withdraws from the Offering Period. He or she hereby directs the Company to pay
to the undersigned as promptly as practicable all the payroll deductions credited to his or her account with respect to such Offering Period. The undersigned understands and agrees that his or her
option for such Offering Period will be automatically terminated. The undersigned understands further that no further payroll deductions will be made for the purchase of shares in the current Offering
Period and the undersigned will be eligible to participate in succeeding Offering Periods only by delivering to the Company a new Subscription Agreement. 

	

 	
 	

Name and Address of Participant:
	

 	
 	

    

	

 	
 	

    

	

 	
 	

    

	

 	
 	

Signature:
	

 	
 	

    

	

 	
 	

Date:	
 	

    

QuickLinks

Exhibit 10.4

IKANOS COMMUNICATIONS 2004 EMPLOYEE STOCK PURCHASE PLAN

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}]]