Document:

Supply Agreement, dated October 12, 2006

 Exhibit 10.63 
 CONFIDENTIAL TREATMENT REQUESTED – CONFIDENTIAL PORTIONS OF 
 THIS DOCUMENT HAVE BEEN REDACTED
AND HAVE BEEN SEPARATELY FILED 
 WITH THE COMMISSION 
  
 

 
 Terms and Conditions 
 With 
 REC SiTech AS 
 This agreement is made as of October 11th, 2006 between SunPower, having its principal place of business at 3939 No. First Street, San Jose, California (hereinafter referred to as “SUNPOWER”) and REC
SiTech AS having its principal place of business at Veritasveien 14, PO Box 280, N-1323 Hovik, Norway (hereinafter referred to as “REC SiTech AS”) 
  

	1.	EFFECTIVE TERM: 

 This agreement shall commence on
January 01, 2007 and shall terminate on December 31, 2007. 
  

	2.	STATEMENT OF PURPOSE: 

  

	(A)	Purpose of this agreement is to establish TERMS AND CONDITIONS under which SunPower may purchase round ingot or slabbed ingot from REC SiTech AS at the agreed upon price schedule
(ATTACHMENT “A”). 

  

	3.	ORDERING PROCEDURES: 

  

	(A)	Orders shall be affected by the SunPower’s blanket purchase order from all applicable ordering locations. In the event of conflicting terms and conditions, this agreement shall
prevail. All blanket orders shall reference this agreement date. 

  

	(B)	Shipments shall be made on the authorization of SunPower’s personnel specified with applicable purchase orders. REC SiTech AS’s acknowledgement of SunPower’s release
shall be in a manner mutually agreeable to SunPower and REC SiTech AS. 

  

	4.	FORECASTING: 

  

	(A)	SunPower and REC SiTech AS shall agree on a weekly schedule as identified in specific purchase orders (+/–10%). 

  

	5.	PRICING: 

  

	(A)	Pricing listed in ATTACHMENT “A” shall remain firm and fixed throughout the term of this agreement. 

  

	(B)	Pricing shall be Ex-Works REC SiTech AS dock as specified in individual purchase orders. SunPower will advise method of shipment, carrier and account number.

  

	(C)	Payment terms shall be net 30 (actual 30 days) from date of invoice (excluding incorrect invoices). 

  

	6.	DELIVERIES / BILLINGS: 

  

	(A)	Shipments shall be made to the location specified on the individual purchase orders. Each shipment shall be accompanied by a packing list specifying: p.o. number, quantity,
description, and pertinent specification data (c of a/c of c). 

  

	(B)	Invoices shall be sent to the address identified on the purchase order and shall specify: P.O. number, line number, applicable release number, SunPower’s part number, quantity,
description and REC SiTech AS’s vendor number (located on the original purchase order). Multiple p.o. numbers or release numbers cannot be combined on individual invoices. 

  
 ***CONFIDENTIAL MATERIAL REDACTED AND 
 SEPARATELY FILED WITH THE COMMISSION*** 

	7.	QUALITY: 

  

	(A)	REC SiTech AS shall provide material to any and all applicable SunPower specifications as provided by SunPower. All material shall conform to such specifications and be of such a
quality as to meet incoming quality assurance requirements. REC SiTech AS’s material, which is of a lesser quality, shall be returned to vendor for credit along with justification for rejection. SunPower will pay invoices for such material and
credit or replacement, once verified by vendor, will be issued. Multiple rejections for poor quality shall be grounds for modification or termination of this agreement. 

  

	(B)	REC SiTech AS is required to implement and maintain a statistical process/control (SPC) program. 

  

	8.	CONFIDENTIAL DISCLOSURE: 

 Both parties mutually agree to certain
confidential information of part hereto, relating to SunPower which if furnished by that party to the other party hereunder in written or other tangible form and is clearly marked as being confidential, or if orally or visually furnished, is
identified as being confidential in a writing submitted to the receiving party with thirty (30) days after such oral or visual disclosure, shall be considered by the receiving party to be Confidential Information of the furnishing party.

 Each party agrees to maintain the Confidential Information of the other party received hereunder in confidence utilizing the same degree of care the
receiving party uses to protect its own confidential information of a similar nature and to not disclose such information to any third party or to employees of the receiving party without a need to know. 
 This agreement shall impose no obligation upon the receiving party with respect to any confidential Information of the furnishing party which (1) is now or which
subsequently becomes general know or available; (2) is known to the receiving party at the time of receipt of same from the furnishing party; (3) is provided by the furnishing party to a third party without restriction on disclosure;
(4) is subsequently rightfully provided to the receiving party by a third party without restriction on disclosure; (5) is independently developed by the receiving party provided the person or persons developing same have not had access to
the Confidential Information of the furnishing party. 
 Both parties shall be relieved of its obligations hereunder (section 8 only) three (3) years
from the date of signing this agreement. 
  

	9.	GOVERNING LAW: 

  

	(A)	SunPower and REC SiTech AS agree to negotiate the settlement of any dispute arising under this agreement in good faith. This agreement shall be constructed and interpreted in
accordance with the laws of the Country of Norway. 

  

	10.	TERMINATION: 

  

	(A)	SunPower or REC SiTech may terminate this agreement by giving the other 180 day written notice. 

  

	11.	FORCE MAJURE: 

  

	(A)	Neither SunPower or REC SiTech AS shall be responsible for failure to execute this agreement due to causes beyond its control, including, but not limited to fire, flood, earthquake,
explosion, accident, acts of public enemies, labor disputes, transportation embargoes, acts of federal government, judicial action, or acts of God. The affected party shall promptly notify the other party of the impossibility of performance, and
should non-performance extend beyond ninety days, either party may terminate this agreement. 

  
 ***CONFIDENTIAL MATERIAL REDACTED AND 
 SEPARATELY FILED WITH THE COMMISSION***

  

 2 

 IN WITNESS WHEREOF, the Parties have had this agreement executed by their respective
AUTHORIZED representatives. 
  

					
	SunPower Corporation	 		  	REC SiTech AS
			
	/S/    JON WHITEMAN	 	 	  	/S/    [ILLEGIBLE]
	AUTHORIZED SIGNATURE	 		  	AUTHORIZED SIGNATURE
			
	Jon Whiteman	 	 	  	[Illegible]
	PRINTED NAME	 		  	PRINTED NAME
			
	Vice President, Strategic Supply	 	 	  	Vice President, Sales & Marketing
	TITLE	 		  	TITLE
			
	10-11-06	 	 	  	10-12-06
	DATE	 		  	DATE
			
	 	 	 	  	   
		 		  	

 Attachment “A”—Price list 
 Attachment “A” 
  

																		
	  	  	2007	  	Total	  	  
	  	  	Q1	  	Q2	  	Q3	  	Q4	  	  	  
	 kgs
	  	 	***	  	 	***	  	 	***	  	 	***	  	 	***	  	+/–10%
	 Price
	  			  			  			  			  			  	 
	 Round
	  	 	***	  	 	***	  	 	***	  	 	***	  			  	 
	 	  	$	5,066,700	  	$	5,066,700	  	$	5,193,000	  	$	5,193,000	  	$	20,519,400	  	 
	 Slabbed
	  	 	***	  	 	***	  	 	***	  	 	***	  			  	 
	 	  	 	***	  	 	***	  	 	***	  	 	***	  	 	***	  	 

  

	*	Pricing for slabbed ingot once qualified by SunPower. Round ingot shipped until slabbed ingot is qualified. 

  
 ***CONFIDENTIAL MATERIAL REDACTED AND 
 SEPARATELY FILED WITH THE COMMISSION*** 
  

 3Warrant, dated March 1, 2007

 Exhibit 4.1 
 NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE
SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE
SECURITIES LAWS, OR (B) AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES
MAY BE PLEDGED TO AN “ACCREDITED INVESTOR” (AS SUCH TERM IS DEFINED IN THE RULES AND REGULATIONS PROMULGATED UNDER THE SECURITIES ACT OF 1933, AS AMENDED) IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT
SECURED BY THE SECURITIES, IF EFFECTED IN COMPLIANCE WITH THE SECURITIES ACT OF 1933, AS AMENDED. 
 AVANEX CORPORATION 

WARRANT TO PURCHASE COMMON STOCK 
 Warrant No.: CS 2007 No. 1 
 Number of Shares of Common Stock: 2,698,764

 Date of Issuance: March 1, 2007 (“Issuance Date”) 
 Avanex Corporation, a Delaware corporation (the “Company”), hereby certifies that, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, KINGS ROAD
INVESTMENTS LTD., the registered holder hereof or its permitted assigns (the “Holder”), is entitled, subject to the terms set forth below, to purchase from the Company, at the Exercise Price (as defined below) then in effect, upon
surrender of this Warrant to Purchase Common Stock (including any Warrants to Purchase Common Stock issued in exchange, transfer or replacement hereof, the “Warrant”), at any time or times on or after March 31, 2007, but not
after 11:59 p.m., New York time, on the Expiration Date (as defined below), TWO MILLION SIX HUNDRED NINETY EIGHT THOUSAND SEVEN HUNDRED SIXTY FOUR (2,698,764) fully paid nonassessable shares of Common Stock (as defined below) (the
“Warrant Shares”). Except as otherwise defined herein, capitalized terms in this Warrant shall have the meanings set forth in Section 15. This Warrant is one of the Warrants to purchase Common Stock (the “SPA
Warrants”) issued pursuant to that certain Securities Purchase Agreement, dated as of March 1, 2007 (the “Subscription Date”), by and among the Company and the investors (the “Buyers”) referred to
therein (the “Securities Purchase Agreement”). 

 1. EXERCISE OF WARRANT. 
 (a) Mechanics of Exercise. Subject to the terms and conditions hereof (including, without limitation, the limitations set forth in Section 1(f)), this Warrant may be exercised by the Holder on any day on
or after March 31, 2007 in whole or in part, by (i) delivery of a written notice, in the form attached hereto as Exhibit A (the “Exercise Notice”), of the Holder’s election to exercise this Warrant and
(ii) (A) payment to the Company of an amount equal to the applicable Exercise Price multiplied by the number of Warrant Shares as to which this Warrant is being exercised (the “Aggregate Exercise Price”) in cash or wire
transfer of immediately available funds or (B) by notifying the Company that this Warrant is being exercised pursuant to a Cashless Exercise (as defined in Section 1(d)). The Holder shall not be required to deliver the original Warrant in
order to effect an exercise hereunder. Execution and delivery of the Exercise Notice with respect to less than all of the Warrant Shares shall have the same effect as cancellation of the original Warrant and issuance of a new Warrant evidencing the
right to purchase the remaining number of Warrant Shares. On or before the second Business Day following the date on which the Company has received each of the Exercise Notice and the Aggregate Exercise Price (or notice of a Cashless Exercise) (the
“Exercise Delivery Documents”), the Company shall transmit by facsimile an acknowledgment of confirmation of receipt of the Exercise Delivery Documents to the Holder and the Company’s transfer agent (the “Transfer
Agent”). On or before the third Business Day following the date on which the Company has received all of the Exercise Delivery Documents (the “Share Delivery Date”), the Company shall (X) provided that the Transfer
Agent is participating in The Depository Trust Company (“DTC”) Fast Automated Securities Transfer Program, upon the request of the Holder, credit such aggregate number of shares of Common Stock to which the Holder is entitled
pursuant to such exercise to the Holder’s or its designee’s balance account with DTC through its Deposit Withdrawal Agent Commission system which balance account shall be specified in the Exercise Notice, or (Y) if the Transfer Agent
is not participating in the DTC Fast Automated Securities Transfer Program, issue and dispatch by overnight courier to the address as specified in the Exercise Notice, a certificate, registered in the Company’s share register in the name of the
Holder or its designee, for the number of shares of Common Stock to which the Holder is entitled pursuant to such exercise. Upon delivery of the Exercise Delivery Documents, the Holder shall be deemed for all corporate purposes to have become the
holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date such Warrant Shares are credited to the Holder’s DTC account or the date of delivery of the certificates evidencing such
Warrant Shares, as the case may be. If this Warrant is submitted in connection with any exercise pursuant to this Section 1(a) and the number of Warrant Shares represented by this Warrant submitted for exercise is greater than the number of
Warrant Shares being acquired upon an exercise, then the Company shall as soon as practicable and in no event later than five Business Days after any exercise and at its own expense, issue a new Warrant (in accordance with Section 7(d))
representing the right to purchase the number of Warrant Shares purchasable immediately prior to such exercise under this Warrant, less the number of Warrant Shares with respect to which this Warrant is exercised. No fractional shares of Common
Stock are to be issued upon the exercise of this Warrant, but rather the number of shares of Common Stock to be issued shall be rounded up to the nearest whole number. The Company shall pay any and all taxes which may be payable with respect to the
issuance and delivery of Warrant Shares upon exercise of this Warrant; provided that the Company shall not be required to pay any tax that may be payable in respect of any transfer involved in the issue and delivery of shares of 

  

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Common Stock in any name other than that of the Holder, in either case with respect to any income or transfer tax due by the Holder with respect to such
shares of Common Stock issued upon exercise of this Warrant. 
 (b) Exercise Price. For purposes of this Warrant, “Exercise
Price” means $2.1452, subject to adjustment as provided herein. 
 (c) Company’s Failure to Timely Deliver Securities.
If within three (3) Trading Days after the Company’s receipt of the Exercise Delivery Documents the Company shall fail to issue and deliver a certificate to the Holder and register such shares of Common Stock on the Company’s share
register or credit the Holder’s balance account with DTC for the number of shares of Common Stock to which the Holder is entitled upon such Holder’s exercise hereunder, and if on or after such Trading Day the Holder purchases (in an open
market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of shares of Common Stock issuable upon such exercise that the Holder anticipated receiving from the Company (a “Buy-In”),
then the Company shall, within three Business Days after the Holder’s request and in the Holder’s discretion, either (i) pay cash to the Holder in an amount equal to the Holder’s total purchase price (including brokerage
commissions, if any) for the shares of Common Stock so purchased (the “Buy-In Price”), at which point the Company’s obligation to deliver such certificate (and to issue such shares of Common Stock) shall terminate, or
(ii) promptly honor its obligation to deliver to the Holder a certificate or certificates representing such shares of Common Stock and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of
(A) such number of shares of Common Stock, times (B) the Closing Bid Price on the date of exercise. 
 (d) Cashless
Exercise. Notwithstanding anything contained herein to the contrary, if the Warrant Shares cannot be sold other than pursuant to a registration statement and no such registration statement is available, the Holder may, in its sole discretion,
exercise this Warrant in whole or in part and, in lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise in payment of the Aggregate Exercise Price, elect instead to receive upon such exercise the
“Net Number” of shares of Common Stock determined according to the following formula (a “Cashless Exercise”): 
 Net Number = (A x B)—(A x C) 
 B 
 For purposes of the foregoing formula: 
 A= the total number of shares with respect to which this Warrant is
then being exercised. 
 B= the Closing Sale Price of the shares of Common Stock (as reported by Bloomberg) on the date immediately preceding
the date of the Exercise Notice. 
 C= the Exercise Price then in effect for the applicable Warrant Shares at the time of such exercise.

  

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 (e) Disputes. In the case of a dispute as to the determination of the Exercise Price or the
arithmetic calculation of the Warrant Shares, the Company shall promptly issue to the Holder the number of Warrant Shares that are not disputed and resolve such dispute in accordance with Section 12. 
 (f) (i) Limitations on Exercises: Beneficial Ownership. The Company shall not effect the
exercise of this Warrant, and the Holder shall not have the right to exercise this Warrant, to the extent that after giving effect to such exercise, such Person (together with such Person’s affiliates) would beneficially own in excess of 9.9%
(the “Maximum Percentage”) of the shares of Common Stock outstanding immediately after giving effect to such exercise. For purposes of the foregoing sentence, the aggregate number of shares of Common Stock beneficially owned by such
Person and its affiliates shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which the determination of such sentence is being made, but shall exclude shares of Common Stock which would be
issuable upon (i) exercise of the remaining, unexercised portion of this Warrant beneficially owned by such Person and its affiliates and (ii) exercise or conversion of the unexercised or unconverted portion of any other securities of the
Company beneficially owned by such Person and its affiliates (including, without limitation, any convertible notes or convertible preferred stock or warrants) subject to a limitation on conversion or exercise analogous to the limitation contained
herein. Except as set forth in the preceding sentence, for purposes of this paragraph, beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended. For purposes of this Warrant,
in determining the number of outstanding shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as reflected in (1) the Company’s most recent Form 10-K, Form 10-Q, Current Report on Form 8-K or
other public filing with the Securities and Exchange Commission, as the case may be, (2) a more recent public announcement by the Company or (3) any other recent notice by the Company or the Transfer Agent setting forth the number of
shares of Common Stock outstanding. For purposes of this Warrant, in determining whether the Holder (together with its affiliates) will not have beneficial ownership (together with the beneficial ownership of the Holder’s affiliates) of a
number of shares of Common Stock which exceeds the Maximum Percentage, the Company may rely solely on the representation of the Holder contained in the Exercise Notice. In any case, the number of outstanding shares of Common Stock shall be
determined after giving effect to the conversion or exercise of securities of the Company, including the SPA Warrants, by the Holder and its affiliates since the date as of which such number of outstanding shares of Common Stock was reported. By
written notice to the Company, the Holder may increase or decrease the Maximum Percentage to any percentage not in excess of 9.9% specified in such notice; provided that (i) any such increase will not be effective until the sixty-first
(61st) day after such notice is delivered to the Company, and (ii) any such increase or decrease will
apply only to the Holder and not to any other holder of SPA Warrants. 
  

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 (ii) Principal Market Regulation. The Company shall not be obligated to issue any
shares of Common Stock upon exercise of this Warrant if the issuance of such shares of Common Stock, when aggregated with the SPA Securities issued pursuant to the Securities Purchase Agreement, would exceed that number of shares of Common Stock
which the Company may issue upon exercise of the SPA Warrants without breaching the Company’s obligations under the rules or regulations of the Principal Market. 
 Notwithstanding anything in this Warrant to the contrary, the Company shall be entitled to treat the registered holder of this Warrant as such appears in its records, as the owner of this Warrant for all purposes;
provided that such records are kept current using reasonably satisfactory and customary methods for such purposes. 
 (g) Insufficient
Authorized Shares. If at any time while any of the Warrants remain outstanding the Company does not have a sufficient number of authorized and unreserved shares of Common Stock to satisfy its obligation to reserve for issuance upon exercise of
the Warrants at least a number of shares of Common Stock equal to 120% of the number of shares of Common Stock as shall from time to time be necessary to effect the exercise of all of the Warrants then outstanding (the “Required Reserve
Amount”) (an “Authorized Share Failure”), then the Company shall promptly take all action necessary to increase the Company’s authorized shares of Common Stock to an amount sufficient to allow the Company to reserve
the Required Reserve Amount for the Warrants then outstanding. Without limiting the generality of the foregoing sentence, as soon as practicable after the date of the occurrence of an Authorized Share Failure, but in no event later than ninety
(90) days after the occurrence of such Authorized Share Failure, the Company shall hold a meeting of its stockholders for the approval of an increase in the number of authorized shares of Common Stock. In connection with such meeting, the
Company shall provide each stockholder with a proxy statement and shall use its best efforts to solicit its stockholders’ approval of such increase in authorized shares of Common Stock. If the Company’s board of directors does not
recommend to the stockholders that they approve such proposal and, despite the Company’s best efforts such stockholder approval is not obtained on or prior to such stockholder meeting date, the Company shall cause an additional meeting of its
stockholders for the approval of an increase in the number of authorized shares of Common Stock to be held each calendar quarter thereafter until (i) such stockholder approval is obtained or (ii) the Company’s board of directors
recommends to the stockholders at a meeting of stockholders that the stockholders approve such proposal. 
 2. ADJUSTMENT OF EXERCISE
PRICE AND NUMBER OF WARRANT SHARES. The Exercise Price and the number of Warrant Shares shall be adjusted from time to time as follows: 
 (a) Adjustment upon Issuance of shares of Common Stock. If and whenever on or after the Subscription Date the Company issues or sells, or in accordance with this Section 2 is deemed to have issued or sold, any shares of Common
Stock (including the 

  

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issuance or sale of shares of Common Stock owned or held by or for the account of the Company, but excluding shares of Common Stock deemed to have been
issued by the Company in connection with any Excluded Securities for a consideration per share less than a price (the “Applicable Price”) equal to the Exercise Price in effect immediately prior to such issue or sale or deemed
issuance or sale (the foregoing a “Dilutive Issuance”), then immediately after such Dilutive Issuance, the Exercise Price then in effect shall be reduced to an amount equal to the product of (A) the Exercise Price in effect
immediately prior to such Dilutive Issuance and (B) the quotient determined by dividing (1) the sum of (I) the product derived by multiplying the Exercise Price in effect immediately prior to such Dilutive Issuance and the number of
Common Stock Deemed Outstanding immediately prior to such Dilutive Issuance plus (II) the consideration, if any, received by the Company upon such Dilutive Issuance, by (2) the product derived by multiplying (I) the Exercise Price in
effect immediately prior to such Dilutive Issuance by (II) the number of Common Stock Deemed Outstanding immediately after such Dilutive Issuance. Upon each such adjustment of the Exercise Price hereunder, the number of Warrant Shares shall be
adjusted to the number of shares of Common Stock determined by multiplying the Exercise Price in effect immediately prior to such adjustment by the number of Warrant Shares acquirable upon exercise of this Warrant immediately prior to such
adjustment and dividing the product thereof by the Exercise Price resulting from such adjustment. For purposes of determining the adjusted Exercise Price under this Section 2(a), the following shall be applicable: 
 (i) Issuance of Options. If the Company grants any Options and the lowest price per share for which one share of Common Stock is
issuable upon the exercise of any such Option or upon conversion, exercise or exchange of any Convertible Securities issuable upon exercise of any such Option is less than the Applicable Price, then such share of Common Stock shall be deemed to be
outstanding and to have been issued and sold by the Company at the time of the granting or sale of such Option for such price per share. For purposes of this Section 2(a)(i), the “lowest price per share for which one share of Common Stock
is issuable upon exercise of such Options or upon conversion, exercise or exchange of such Convertible Securities” shall be equal to the sum of the lowest amounts of consideration (if any) received or receivable by the Company with respect to
any one share of Common Stock upon the granting or sale of the Option, upon exercise of the Option and upon conversion, exercise or exchange of any Convertible Security issuable upon exercise of such Option. No further adjustment of the Exercise
Price or number of Warrant Shares shall be made upon the actual issuance of such shares of Common Stock or of such Convertible Securities upon the exercise of such Options or upon the actual issuance of such shares of Common Stock upon conversion,
exercise or exchange of such Convertible Securities. 
 (ii) Issuance of Convertible Securities. If the Company in any
manner issues or sells any Convertible Securities and the lowest price per share for which one share of Common Stock is issuable upon the conversion, exercise or exchange thereof is less than the Applicable Price, then such share of Common Stock
shall be deemed to be outstanding and 

  

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to have been issued and sold by the Company at the time of the issuance or sale of such Convertible Securities for such price per share. For the purposes of
this Section 2(a)(ii), the “lowest price per share for which one share of Common Stock is issuable upon the conversion, exercise or exchange” shall be equal to the sum of the lowest amounts of consideration (if any) received or
receivable by the Company with respect to one share of Common Stock upon the issuance or sale of the Convertible Security and upon conversion, exercise or exchange of such Convertible Security. No further adjustment of the Exercise Price or number
of Warrant Shares shall be made upon the actual issuance of such shares of Common Stock upon conversion, exercise or exchange of such Convertible Securities, and if any such issue or sale of such Convertible Securities is made upon exercise of any
Options for which adjustment of this Warrant has been or is to be made pursuant to other provisions of this Section 2(a), no further adjustment of the Exercise Price or number of Warrant Shares shall be made by reason of such issue or sale.

 (iii) Change in Option Price or Rate of Conversion. If the purchase price provided for in any Options, the
additional consideration, if any, payable upon the issue, conversion, exercise or exchange of any Convertible Securities, or the rate at which any Convertible Securities are convertible into or exercisable or exchangeable for shares of Common Stock
increases or decreases at any time, the Exercise Price and the number of Warrant Shares in effect at the time of such increase or decrease shall be adjusted to the Exercise Price and the number of Warrant Shares which would have been in effect at
such time had such Options or Convertible Securities provided for such increased or decreased purchase price, additional consideration or increased or decreased conversion rate, as the case may be, at the time initially granted, issued or sold. For
purposes of this Section 2(a)(iii), if the terms of any Option or Convertible Security that was outstanding as of the Subscription Date are increased or decreased in the manner described in the immediately preceding sentence, then such Option
or Convertible Security and the shares of Common Stock deemed issuable upon exercise, conversion or exchange thereof shall be deemed to have been issued as of the date of such increase or decrease. No adjustment pursuant to this Section 2(a)
shall be made if such adjustment would result in an increase of the Exercise Price then in effect or a decrease in the number of Warrant Shares. 
 (iv) Calculation of Consideration Received. In case any Option is issued in connection with the issue or sale of other securities of the Company, together comprising one integrated transaction in which no
specific consideration is allocated to such Options by the parties thereto, the Options will be deemed to have been issued for a consideration of $0.01. If any shares of Common Stock, Options or Convertible Securities are issued or sold or deemed to
have been issued or sold for cash, the consideration received therefor will be deemed to be the net amount 

  

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received by the Company therefor. If any shares of Common Stock, Options or Convertible Securities are issued or sold for a consideration other than cash,
the amount of such consideration received by the Company will be the fair value of such consideration, except where such consideration consists of securities, in which case the amount of consideration received by the Company will be the Closing Sale
Price of such security on the date of receipt. If any shares of Common Stock, Options or Convertible Securities are issued to the owners of the non-surviving entity in connection with any merger in which the Company is the surviving entity, the
amount of consideration therefor will be deemed to be the fair value of such portion of the net assets and business of the non-surviving entity as is attributable to such shares of Common Stock, Options or Convertible Securities, as the case may be.
The fair value of any consideration other than cash or securities will be determined in good faith by the Board of Directors of the Company within five (5) days after the occurrence of an event requiring valuation. If the Required Holders
disagree with the determination of the Board of Directors and give written notice of such disagreement to the Company within ten (10) days after the occurrence of an event requiring valuation (the “Valuation Event”), the fair
value of such consideration will be determined within five (5) Business Days after the tenth day following the Valuation Event by an independent, reputable appraiser jointly selected by the Company and the Required Holders. The determination of
such appraiser shall be final and binding upon all parties absent manifest error and the fees and expenses of such appraiser shall be borne by the Company. 
 (v) Record Date. If the Company takes a record of the holders of shares of Common Stock for the purpose of entitling them (A) to receive a dividend or other distribution payable in shares of Common Stock,
Options or in Convertible Securities or (B) to subscribe for or purchase shares of Common Stock, Options or Convertible Securities, then such record date will be deemed to be the date of the issue or sale of the shares of Common Stock deemed to
have been issued or sold upon the declaration of such dividend or the making of such other distribution or the date of the granting of such right of subscription or purchase, as the case may be. 
 (b) Adjustment upon Subdivision or Combination of shares of Common Stock. If the Company at any time on or after the Subscription Date subdivides
(by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its outstanding shares of Common Stock into a greater number of shares, the Exercise Price in effect immediately prior to such subdivision will be
proportionately reduced and the number of Warrant Shares will be proportionately increased. If the Company at any time on or after the Subscription Date combines (by combination, reverse stock split or otherwise) one or more classes of its
outstanding shares of Common Stock into a smaller number of shares, the Exercise Price in effect immediately prior to such combination will be proportionately increased and the number of Warrant Shares will be proportionately decreased. Any
adjustment under this Section 2(b) shall become effective at the close of business on the date the subdivision or combination becomes effective. 
  

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 (c) Other Events. No adjustment in the Exercise Price shall be required unless such adjustment
would require an increase or decrease of at least 1% in such price; provided, however, that any adjustments which by reason of this Section 2(c) are not required to be made shall be carried forward and taken into account in any
subsequent adjustment. All calculations under this Section 2 shall be made by the Company in good faith and shall be made to the nearest cent or to the nearest one hundredth of a share, as applicable. No adjustment need be made for a change in
the par value or no par value of the Company’s Common Stock. 
 3. RIGHTS UPON DISTRIBUTION OF ASSETS. If the Company shall
declare or make any dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or
other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”), at any time after the Subscription Date, then,
in each such case: 
 (a) any Exercise Price in effect immediately prior to the close of business on the record date fixed for the
determination of holders of shares of Common Stock entitled to receive the Distribution shall be reduced, effective as of the close of business on such record date, to a price determined by multiplying such Exercise Price by a fraction of which
(i) the numerator shall be the Closing Bid Price of a share of Common Stock on the Trading day immediately preceding such record date minus the value of the Distribution (as determined in good faith by the Company’s Board of Directors)
applicable to one share of Common Stock, and (ii) the denominator shall be the Closing Bid Price of a share of Common Stock on the Trading day immediately preceding such record date; and 
 (b) the number of Warrant Shares shall be increased to a number of shares equal to the number of shares of Common Stock obtainable immediately prior to
the close of business on the record date fixed for the determination of holders of shares of Common Stock entitled to receive the Distribution multiplied by the reciprocal of the fraction set forth in the immediately preceding paragraph (a);
provided that in the event that the Distribution is of shares of Common Stock (or common stock) (“Other Shares of Common Stock”) of a company whose common shares are traded on a national securities exchange or a national automated
quotation system, then the Holder may elect to receive a warrant to purchase Other Shares of Common Stock in lieu of an increase in the number of Warrant Shares, the terms of which shall be identical to those of this Warrant, except that such
warrant shall be exercisable into the number of shares of Other Shares of Common Stock that would have been payable to the Holder pursuant to the Distribution had the Holder exercised this Warrant immediately prior to such record date and with an
aggregate exercise price equal to the product of the amount by which the exercise price of this Warrant was decreased with respect to the Distribution pursuant to the terms of the immediately preceding paragraph (a) and the number of Warrant
Shares calculated in accordance with the first part of this paragraph (b). 
  

 - 9 - 

 4. PURCHASE RIGHTS; FUNDAMENTAL TRANSACTIONS. 
 (a) Purchase Rights. In addition to any adjustments pursuant to Section 2 above, if at any time the Company grants, issues or sells any
Options, Convertible Securities or rights to purchase stock, warrants, securities or other property pro rata to all or substantially all of the record holders of any class of shares of Common Stock (the “Purchase Rights”), then the
Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, upon the Holder’s election, the aggregate Purchase Rights, in lieu of any adjustments to which the Holder is otherwise entitled under Section 2 above in
respect to such Purchase Right which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations on the exercise of this Warrant)
immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant,
issue or sale of such Purchase Rights. 
 (b) Fundamental Transactions. 
 (i) If the Company enters into or is party to a Fundamental Transaction, then the Holder shall have the right to either (A) purchase and receive
upon the basis and upon the terms and conditions herein specified and in lieu of the Warrant Shares immediately theretofore issuable upon exercise of the Warrant, such shares of stock, securities or assets (including cash) as would have been
issuable or payable with respect to or in exchange for a number of Warrant Shares equal to the number of Warrant Shares immediately theretofore issuable upon exercise of the Warrant had such Fundamental Transaction not taken place, (B) require
the repurchase of this Warrant for a purchase price equal to the Black Scholes Value of the remaining unexercised portion of this Warrant on the date of such request, or (C) receive in exchange for this Warrant a Successor Warrant (the right to
elect treatment of this Warrant in accordance with clauses (A) or (B) above, the “Initial Holder Election Rights” and the right to elect treatment of this Warrant in accordance with clause (C) above, the
“Additional Holder Election Rights”). 
 (ii) Within five (5) Trading Days of the Company becoming aware of any
Fundamental Transaction, the Company shall make a public announcement of such Fundamental Transaction. Within five (5) Trading Days of any public announcement by the Company of a Fundamental Transaction (such announcement, the
“Fundamental Transaction Announcement”), the Company shall notify the Holder in writing of such Fundamental Transaction (such notice, the “Fundamental Transaction Announcement Notice”). Within ten (10) Trading
Days after the Holder’s receipt of the Fundamental Transaction Announcement Notice, the Holder shall provide written notice to the Company (the “Initial Holder Election Notice “) of its election with respect to the Initial
Holder Election Rights of the treatment of this Warrant in accordance with Section 4(b)(i)(A) or Section 4(b)(i) (B) above in connection with such Fundamental Transaction. 
 (iii) After all the conditions to closing of such Fundamental Transaction have been satisfied or waived by the parties thereto, but in no event earlier
than the tenth (10th) Trading Day prior to the date of the consummation of such Fundamental Transaction 

  

 - 10 - 

 
(such consummation date, the “Fundamental Transaction Closing Date”), the Company shall provide written notice to the Holder that such
conditions have been satisfied or waived (such notice, the “Fundamental Transaction Closing Notice”); provided, however, that to the extent the Company fails to consummate the Fundamental Transaction on or prior to the tenth
(10th) Trading Day after delivering the Fundamental Transaction Closing Notice (or any Additional Fundamental Transaction Notice, as applicable) to the Holder, the Company shall deliver an additional notice to the Holder (an “Additional
Fundamental Transaction Closing Notice”) at such date the Company reasonable believes is not earlier than the tenth (10th) Trading Day prior to the date of the consummation of such Fundamental Transaction. 
 (iv) Within five (5) Trading Days after the Holder’s receipt of the Fundamental Transaction Closing Notice, the Holder may provide written
notice to the Company (the “Additional Holder Election Notice “) of its election to withdraw its Initial Holder Election Notice and elect the Additional Holder Election Rights in accordance in Section 4(b)(i)(C) above in
connection with such Fundamental Transaction and its calculations of the applicable Company Market Price and Successor Market Price selected by the Holder in connection with such election (it being understood among the parties that the date used to
calculate the Company Market Price and the date used to calculate the Successor Market Price must be the same date); provided, further, that within five (5) Trading Days after the Holder’s receipt of any Additional Fundamental Transaction
Notice, at the Holder’s Option, the Holder may either (x) withdraw its Additional Holder Election Notice and reinstate its Initial Holder Election Notice or (y) withdraw its Additional Election Notice and deliver a new Additional
Holder Election Notice with calculations of the Company Market Price and the Successor Market Price based on, at the Holder’s option, either the date of the Initial Fundamental Transaction Notice or the date of any Additional Fundamental
Transaction Notice delivered to the Holder in connection with such Fundamental Transaction. 
 (v) The amounts paid pursuant to the exercise
of the Initial Holder Election Rights shall be payable, or a Successor Warrant issued pursuant to the exercise of the Additional Holder Election Rights shall be delivered, as applicable, upon the later of the consummation of the Fundamental
Transaction or as soon as reasonably practicable following the election of the form of consideration by the Holder hereof. The terms of any agreement pursuant to which a Fundamental Transaction is effected shall include terms requiring any such
Successor Entity to comply with the provisions of this Section 4(b). The provisions of this Section shall apply similarly and equally to successive Fundamental Transactions and shall be applied without regard to any limitations on the
exercise of this Warrant. 
 5. NONCIRCUMVENTION. The Company hereby covenants and agrees that the Company will not, by amendment of
its Articles of Incorporation, Bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities, or any other voluntary action, for the principal purpose of avoiding or
seeking to avoid the observance or performance of any of the terms of this Warrant, and will at all times in good faith carry out all the provisions of this Warrant and take all action required hereunder to protect the rights of the Holder. Without
limiting the generality of the foregoing, the Company (i) shall not increase the par value of any shares of Common Stock receivable upon the exercise of this Warrant above the Exercise Price then in effect, (ii) shall take all such actions
as may be necessary or appropriate in order that the Company may validly and legally issue fully 

  

 - 11 - 

 
paid and nonassessable shares of Common Stock upon the exercise of this Warrant, and (iii) shall, so long as any of the SPA Warrants are outstanding,
take all action necessary to reserve and keep available out of its authorized and unissued shares of Common Stock, solely for the purpose of effecting the exercise of the SPA Warrants, 120% of the number of shares of Common Stock as shall from time
to time be necessary to effect the exercise of the SPA Warrants then outstanding (without regard to any limitations on exercise). 
 6.
WARRANT HOLDER NOT DEEMED A STOCKHOLDER. Except as otherwise specifically provided herein, the Holder, solely in such Person’s capacity as a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the
holder of share capital of the Company for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, solely in such Person’s capacity as the Holder of this Warrant, any of the rights of a shareholder of
the Company or any right to vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends
or subscription rights, or otherwise, prior to the issuance to the Holder of the Warrant Shares which such Person is then entitled to receive upon the due exercise of this Warrant. In addition, subject to the provisions of this Warrant, nothing
contained in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities (upon exercise of this Warrant or otherwise) or as a shareholder of the Company. 
 7. REISSUANCE OF WARRANTS. 
 (a)
Transfer of Warrant. If this Warrant is to be transferred, the Holder shall surrender this Warrant to the Company, whereupon the Company will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with
Section 7(d)), registered as the Holder may request, representing the right to purchase the number of Warrant Shares being transferred by the Holder and, if less then the total number of Warrant Shares then underlying this Warrant is being
transferred, a new Warrant (in accordance with Section 7(d)) to the Holder representing the right to purchase the number of Warrant Shares not being transferred. 
 (b) Lost, Stolen or Mutilated Warrant. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant, and, in the case of loss,
theft or destruction, of any indemnification undertaking by the Holder to the Company in customary form and, in the case of mutilation, upon surrender and cancellation of this Warrant, the Company shall execute and deliver to the Holder a new
Warrant (in accordance with Section 7(d)) representing the right to purchase the Warrant Shares then underlying this Warrant. 
 (c)
Exchangeable for Multiple Warrants. This Warrant is exchangeable, upon the surrender hereof by the Holder at the principal office of the Company, for a new Warrant or Warrants (in accordance with Section 7(d)) representing in the
aggregate the right to purchase the number of Warrant Shares then underlying this Warrant, and each such new Warrant will represent the right to purchase such portion of such Warrant Shares as is designated by the Holder at the time of such
surrender; provided, however, that no Warrants for fractional shares of Common Stock shall be given. 
  

 - 12 - 

 (d) Issuance of New Warrants. Whenever the Company is required to issue a new Warrant pursuant to
the terms of this Warrant, such new Warrant (i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such new Warrant, the right to purchase the Warrant Shares then underlying this Warrant (or in the
case of a new Warrant being issued pursuant to Section 7(a) or Section 7(c), the Warrant Shares designated by the Holder which, when added to the number of shares of Common Stock underlying the other new Warrants issued in connection with
such issuance, does not exceed the number of Warrant Shares then underlying this Warrant), (iii) shall have an issuance date, as indicated on the face of such new Warrant which is the same as the Issuance Date, and (iv) shall have the same
rights and conditions as this Warrant. 
 8. NOTICES. Whenever notice is required to be given under this Warrant, unless otherwise
provided herein, such notice shall be given in accordance with Section 9(f) of the Securities Purchase Agreement. The Company shall provide the Holder with prompt written notice of all actions taken pursuant to this Warrant, including in
reasonable detail a description of such action and the reason therefore. Without limiting the generality of the foregoing, the Company will give written notice to the Holder (i) immediately upon any adjustment of the Exercise Price, setting
forth in reasonable detail, and certifying, the calculation of such adjustment and (ii) at least fifteen days prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend or distribution upon
the shares of Common Stock, (B) with respect to any grants, issuances or sales of any Options, Convertible Securities or rights to purchase stock, warrants, securities or other property to holders of shares of Common Stock or (C) for
determining rights to vote with respect to any Fundamental Transaction, dissolution or liquidation, provided in each case that such information shall be made known to the public prior to or in conjunction with such notice being provided to the
Holder. 
 9. AMENDMENT AND WAIVER. Except as otherwise provided herein, the provisions of this Warrant may be amended and the Company
may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company has obtained the written consent of the Required Holders; provided that no such action may increase the exercise price of
any SPA Warrant or decrease the number of shares or class of stock obtainable upon exercise of any SPA Warrant without the written consent of the Holder. No such amendment shall be effective to the extent that it applies to less than all of the
holders of the SPA Warrants then outstanding. 
 10. GOVERNING LAW. This Warrant shall be governed by and construed and enforced in
accordance with, and all questions concerning the construction, validity, interpretation and performance of this Warrant shall be governed by, the internal laws of the State of New York, without giving effect to any choice of law or conflict of law
provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York. 
 11. CONSTRUCTION; HEADINGS. This Warrant shall be deemed to be jointly drafted by the Company and all the Buyers and shall not be construed
against any person as the drafter hereof. The headings of this Warrant are for convenience of reference and shall not form part of, or affect the interpretation of, this Warrant. 
  

 - 13 - 

 12. DISPUTE RESOLUTION. In the case of a dispute as to the determination of the Exercise Price or
the arithmetic calculation of the Warrant Shares, the Company shall submit the disputed determinations or arithmetic calculations via facsimile within two Business Days of receipt of the Exercise Notice giving rise to such dispute, as the case may
be, to the Holder. If the Holder and the Company are unable to agree upon such determination or calculation of the Exercise Price or the Warrant Shares within three Business Days of such disputed determination or arithmetic calculation being
submitted to the Holder, then the Company shall, within two Business Days submit via facsimile (a) the disputed determination of the Exercise Price to an independent, reputable investment bank selected by the Company and approved by the Holder
or (b) the disputed arithmetic calculation of the Warrant Shares to the Company’s independent, outside accountant. The Company, at the Company’s expense, shall use reasonable best efforts to cause at its expense the investment bank or
the accountant, as the case may be, to perform the determinations or calculations and notify the Company and the Holder of the results no later than ten Business Days from the time it receives the disputed determinations or calculations. Such
investment bank’s or accountant’s determination or calculation, as the case may be, shall be binding upon all parties absent demonstrable error. 
 13. REMEDIES, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Warrant shall be cumulative and in addition to all other remedies available under this Warrant and the other
Transaction Documents, at law or in equity (including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the right of the Holder to pursue actual damages for any failure by the Company to comply with the
terms of this Warrant. The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company therefore agrees that, in the
event of any such breach or threatened breach, the holder of this Warrant shall be entitled, in addition to all other available remedies, to an injunction restraining any breach, without the necessity of showing economic loss and without any bond or
other security being required. 
 14. TRANSFER. This Warrant may be offered for sale, sold, transferred or assigned without the
consent of the Company, except as may otherwise be required by Section 2(g) of the Securities Purchase Agreement. 
 15. CERTAIN
DEFINITIONS. For purposes of this Warrant, the following terms shall have the following meanings: 
 (a) “Approved Stock
Plan” means any employee benefit plan, stock grant, stock option or purchase plan, or stock option exchange plan or other employee stock incentive or similar agreement approved by the Board of Directors of the Company pursuant to which the
Company’s securities may be issued to any officers, directors, or employees of, or consultants to, the Company for services provided thereto. 
 (b) “Black Scholes Value” means the value of this Warrant based on the Black and Scholes Option Pricing Model obtained from the “OV” function on Bloomberg determined as of the day immediately following the public
announcement of the applicable Fundamental Transaction and reflecting (i) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the remaining term of this Warrant as of such date of request and (ii) an
expected volatility equal to the greater of 60% and the 100 day volatility obtained from the “HVT” function on Bloomberg. 
  

 - 14 - 

 (c) “Bloomberg” means Bloomberg Financial Markets. 
 (d) “Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are
authorized or required by law to remain closed. 
 (e) “Closing Bid Price” and “Closing Sale Price” means,
for any security as of any date, the last closing bid price and last closing trade price, respectively, for such security on the Principal Market, as reported by Bloomberg, or, if the Principal Market begins to operate on an extended hours basis and
does not designate the closing bid price or the closing trade price, as the case may be, then the last bid price or last trade price, respectively, of such security prior to 4:00:00 p.m., New York time, as reported by Bloomberg, or, if the Principal
Market is not the principal securities exchange or trading market for such security, the last closing bid price or last trade price, respectively, of such security on the principal securities exchange or trading market where such security is listed
or traded as reported by Bloomberg, or if the foregoing do not apply, the last closing bid price or last trade price, respectively, of such security in the over-the-counter market on the electronic bulletin board for such security as reported by
Bloomberg, or, if no closing bid price or last trade price, respectively, is reported for such security by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market makers for such security as reported in the
“pink sheets” by Pink Sheets LLC (formerly the National Quotation Bureau, Inc.). If the Closing Bid Price or the Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Bid
Price or the Closing Sale Price, as the case may be, of such security on such date shall be the fair market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market value of
such security, then such dispute shall be resolved pursuant to Section 12. All such determinations shall be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during the applicable
calculation period. 
 (f) “Common Stock” means (i) the Company’s shares of Common Stock, par value $.001 per
share, and (ii) any share capital into which such Common Stock shall have been changed or any share capital resulting from a reclassification of such Common Stock. 
 (g) “Common Stock Deemed Outstanding” means, at any given time, the number of shares of Common Stock outstanding immediately prior to such issue calculated on a fully diluted basis, as if all
Convertible Securities had been fully converted into shares of Common Stock immediately prior to such issuance and any outstanding warrants, options or other rights for the purchase of either shares of Common Stock or Convertible Securities had been
fully exercised immediately prior to such issuance (and the resulting securities fully converted into shares of Common Stock, if so convertible) as of such date, but excluding any Common Stock owned or held by or for the account of the Company or
issuable upon exercise of the SPA Warrants. 
  

 - 15 - 

 (h) “Company Market Price” means, as indicated by the Holder in the applicable
Additional Holder Election Notice, either: (I) the Closing Bid Price of the Common Stock on the Trading Day immediately prior to the date of the Fundamental Transaction Announcement, (II) the Closing Bid Price of the Common Stock on the Trading
Day immediately following the date of the Fundamental Transaction Announcement or (III) the Closing Bid Price of the Common Stock as of the date of the delivery of the Fundamental Transaction Closing Notice (or any such Additional Fundamental
Transaction Closing Notice, as applicable) to the Holder. 
 (i) “Convertible Securities” means any stock or securities
(other than Options) directly or indirectly convertible into or exercisable or exchangeable for shares of Common Stock. 
 (j)
“Eligible Market” means the Principal Market, the American Stock Exchange, The New York Stock Exchange, Inc., The NASDAQ Global Select Market or The NASDAQ Capital Market. 
 (k) “Excluded Securities” means any Common Stock issued or issuable: (i) in connection with any Approved Stock Plan; (ii) upon
exercise of the SPA Warrants; (iii) pursuant to a bona fide firm commitment underwritten public offering with a nationally recognized underwriter which generates gross proceeds to the Company in excess of $10,000,000 (other than an
“at-the-market offering” as defined in Rule 415(a)(4) under the Securities Act and “equity lines”); (iv) in connection with any acquisition by the Company, whether through an acquisition of stock or a merger of any business,
assets or technologies the primary purpose of which is not to raise equity capital (a “Qualifying Acquisition”); provided such amount does not exceed, in the aggregate 30% of the outstanding shares of Common Stock in any twelve
month period (the “30% Limit”); provided further that the 30% Limit shall not apply to any such Qualifying Acquisition if the Weighted Average Price of the Common Stock is greater than 125% of the Exercise Price for at least twenty
(20) Trading days out of the thirty (30) consecutive Trading Days prior to the public announcement of such Qualifying Acquisition; and provided further that in the event that a Qualifying Acquisition exceeds the 30% Limit, any antidilution
adjustments made pursuant to Section 2(a) above shall only apply to the extent that such Qualifying Acquisition exceeds the 30% Limit; (v) upon conversion of any Options or Convertible Securities (other than any Options issued pursuant to
an Approved Stock Plan) which are outstanding on the day immediately preceding the Subscription Date, provided that the terms of such Options or Convertible Securities are not amended, modified or changed on or after the Subscription Date; or
(vi) in respect of subdivisions, stock dividends or capital reorganizations affecting the Common Stock. 
 (l) “Expiration
Date” means the date forty eight (48) months after the Subscription Date or, if such date falls on a day other than a Business Day or on which trading does not take place on the Principal Market (a “Holiday”), the next
date that is not a Holiday. 
 (m) “Fundamental Transaction” means the occurrence, in one or more related transactions, of
any of the following events: (i) the Company, directly or indirectly, consolidates or merges with or into another Person (unless the Company is the surviving corporation and the shareholders of the Company prior to such merger or consolidation
continue 

  

 - 16 - 

 
to hold immediately thereafter a majority of the aggregate ordinary voting power represented by issued and outstanding Common Stock of such surviving
corporation), or (ii) the Company, directly or indirectly, sells, assigns, transfers, conveys or otherwise disposes of all or substantially all of the properties or assets of the Company to another Person, (iii) allow another Person to
make a purchase, tender or exchange offer that is accepted by the holders of more than the 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the Person or Persons making or party to, or associated or
affiliated with the Persons making or party to, such purchase, tender or exchange offer), (iv) or any “person” or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of the Exchange Act) is or shall
become the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 50% of the aggregate ordinary voting power represented by issued and outstanding Common Stock, or (v) the Company reorganizes,
recapitalizes or reclassifies its Common Stock. 
 (n) “Options” means any rights, warrants or options to subscribe for or
purchase shares of Common Stock or Convertible Securities. 
 (o) “Parent Entity” of a Person means an entity that, directly
or indirectly, controls the applicable Person and whose common stock or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such Person or Parent Entity, the Person or Parent Entity with the largest
public market capitalization as of the date of consummation of the Fundamental Transaction. 
 (p) “Person” means an
individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity and a government or any department or agency thereof. 
 (q) “Principal Market” means The NASDAQ Global Market. 
 (r) “Required Holders” means the holders of the SPA Warrants representing at least a majority of shares of Common Stock underlying the SPA Warrants then outstanding. 
 (s) “SPA Securities” means the Common Stock issued pursuant to the Securities Purchase Agreement. 
 (t) “Successor Entity” means the Person (or, if so elected by the Required Holders, the Parent Entity) formed by, resulting from or
surviving any Fundamental Transaction or the Person (or, if so elected by the Required Holders, the Parent Entity) with which such Fundamental Transaction shall have been entered into. 
 (u) “Successor Market Price” means, as indicated by the Holder in the applicable Additional Holder Election Notice, either: (I) the
Closing Bid Price of the Successor Common Stock on the Trading Day immediately prior to the date of the Fundamental Transaction Announcement, (II) the Closing Bid Price of the Successor Common Stock on the Trading Day immediately following the date
of the Fundamental Transaction Announcement or (III) the Closing Bid Price of the Successor Common Stock as of the date of the delivery of the Fundamental Transaction Closing Notice (or any such Additional Fundamental Transaction Closing Notice, as
applicable) to the Holder. 
  

 - 17 - 

 (v) “Successor Warrant” means a security of the Successor Entity evidenced by a written
instrument substantially similar in form and substance to this Warrant and (a) exercisable for such number of shares (the “Successor Warrant Shares”) of the publicly traded capital stock (without regard to any terms, conditions
or limitations on the exercise of the Successor Warrant that would otherwise prevent the holder of such Successor Warrant from exercising such Successor Warrant in a single exercise notice in full)of the Successor Entity (the “Successor
Common Stock”) equal to the product of (i) the number of Warrant Shares issuable upon exercise of this Warrant immediately prior to the date of the consummation of such Fundamental Transaction (without regard to any terms, conditions
or limitations on the exercise of this Warrant that would otherwise prevent the Holder of this Warrant from exercising this Warrant in a single exercise notice in full) and (ii) the quotient of (x) the Company Market Price divided by
(y) the Successor Market Price and (b) the exercise price of such Successor Warrant shall equal the product of (i) the Successor Market Price and (ii) the quotient of (x) the Exercise Price in effect as of the date
immediately preceding the consummation of such Fundamental Transaction divided by (y) the Company Market Price. 
 (w) “Trading
Day” means any day on which the Common Stock is traded on the Principal Market, or, if the Principal Market is not the principal trading market for the Common Stock, then on the principal securities exchange or securities market on which
the Common Stock is then traded; provided that “Trading Day” shall not include any day on which the Common Stock is scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is suspended from
trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time).

 (x) “Weighted Average Price” means, for any security as of any date, the dollar volume-weighted average price for such
security on the Principal Market during the period beginning at 9:30:01 a.m., New York time (or such other time as the Principal Market publicly announces is the official open of trading), and ending at 4:00:00 p.m., New York time (or such other
time as the Principal Market publicly announces is the official close of trading) as reported by Bloomberg through its “Volume at Price” functions, or, if the foregoing does not apply, the dollar volume-weighted average price of such
security in the over-the-counter market on the electronic bulletin board for such security during the period beginning at 9:30:01 a.m., New York Time (or such other time as such market publicly announces is the official open of trading), and ending
at 4:00:00 p.m., New York time (or such other time as such market publicly announces is the official close of trading) as reported by Bloomberg, or, if no dollar volume-weighted average price is reported for such security by Bloomberg for such
hours, the average of the highest closing bid price and the lowest closing ask price of any of the market makers for such security as reported in the “pink sheets” by Pink Sheets LLC (formerly the National Quotation Bureau, Inc.). If the
Weighted Average Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Weighted Average Price of such security on such date shall be the fair market value as mutually determined by the Company and the
Holder. If the Company and the Holder are unable to agree upon the fair market value of such security, 

  

 - 18 - 

 
then such dispute shall be resolved pursuant to Section 25. All such determinations to be appropriately adjusted for any stock dividend, stock split,
stock combination or other similar transaction during the applicable calculation period. 
 [Signature Page Follows] 
  

 - 19 - 

 IN WITNESS WHEREOF, the Company has caused this Warrant to Purchase Common Stock to be duly
executed as of the Issuance Date set out above. 
  

					
	AVANEX CORPORATION	 	
			
	By:	 	 /s/ Jo Major
	 	
	Name:	 	Jo Major	 	
	Title:	 	CEO	 	

 EXHIBIT A 
 EXERCISE NOTICE 
 TO BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS 
 WARRANT TO PURCHASE COMMON STOCK 
 AVANEX CORPORATION 
 TO: CHIEF FINANCIAL OFFICER 
 FAX: 510-897-4345 
 The undersigned holder hereby exercises the right to purchase
                     of the shares of Common Stock (“Warrant Shares”) of Avanex Corporation, a Delaware corporation (the
“Company”), evidenced by the attached Warrant to Purchase Common Stock (the “Warrant”). Capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the Warrant.

 1. Form of Exercise Price. The Holder intends that payment of the Exercise Price shall be made as: 
              a “Cash Exercise” with respect to
             Warrant Shares; and/or 
              a “Cashless Exercise” with respect to              Warrant Shares.

 Notwithstanding anything to the contrary contained herein, this Exercise Notice shall constitute a representation by the holder of the
Warrant submitting this Exercise Notice that, after giving effect to the exercise provided for in this Exercise Notice, such holder (together with its affiliates) will not have beneficial ownership (together with the beneficial ownership of such
Person’s affiliates) of a number of shares of Common Stock which exceeds the Maximum Percentage of the total outstanding shares of Common Stock as determined pursuant to the provisions of Section 1(f)(i) of this Warrant. 
 2. Payment of Exercise Price. In the event that the holder has elected a Cash Exercise with respect to some or all of the Warrant Shares to be issued
pursuant hereto, the holder shall pay the Aggregate Exercise Price in the sum of $             to the Company in accordance with the terms of the Warrant. 
 3. Delivery of Warrant Shares. The Company shall deliver to the holder
                     Warrant Shares in accordance with the terms of the Warrant. 

			
	Date:	 	                         ,
        
	
	  

	Name of Registered Holder
		
	By:	 	  

	Name:	 	
	Title:	 	

 ACKNOWLEDGMENT 
 The Company hereby acknowledges this Exercise Notice and hereby directs Computershare Investor Services to issue the above indicated number of shares of Common Stock in accordance with the Transfer Agent Instructions
dated March 1, 2007 from the Company and acknowledged and agreed to by Computershare Investor Services 
  

			
	AVANEX CORPORATION
		
	By:	 	  

	Name:	 	
	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00118-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00118-of-00352.parquet"}]]