Document:

Severance Agreement  - Paul Engle

 
Exhibit 10.2

 
AVANEX CORPORATION 
 
SEVERANCE AGREEMENT AND RELEASE 
 
This Severance Agreement and Release (“Agreement”)
is made by and between Avanex Corporation (the “Company”), and Paul Engle (“Executive”). 
 
WHEREAS, Executive was employed by the Company as its President and Chief Executive Officer; 
 
WHEREAS, Executive has served as a member of the
Company’s Board of Directors; 
 
WHEREAS,
Executive has resigned from all such positions, and 
 
WHEREAS, the Executive agrees to release the Company from any claims arising from or related to Executive’s service relationship; 
 
NOW THEREFORE, in consideration of the mutual promises made herein, the Company and Executive (collectively referred to as “the
Parties”) hereby agree as follows: 
 
1.    Termination of Employment and Board Membership.    Executive hereby acknowledges resignation of his employment and his membership on the Company’s Board of Directors effective
upon the close of business on November 18, 2002 (the “Termination Date”). 
 
2.    Payment of Salary.    Executive acknowledges and represents that the Company has paid all salary, wages, accrued vacation and any and all other
benefits due to Executive as of the Termination Date. 
 
3.    Consideration.    As consideration for Executive entering into this Agreement, the Company agrees to provide Executive with the following benefits: 
 
(a)     Salary;
Lump-Sum Payment.    On the Effective Date, Executive shall be paid a lump-sum payment of $41,732.20, less applicable withholding, equal to Executive’s current base salary from November 19, 2002 through December 31,
2002. On January 10, 2003, Executive shall be paid a lump-sum payment of $350,000, less applicable withholding, representing payment in full for any and all amounts payable to Executive as cash compensation. 
 
(b)    Stock Option
Accelerated Vesting.    All of Executive’s outstanding options to purchase common stock of the Company (the “Options”) shall, on the Effective Date, have their vesting accelerated as to six (6) months of
additional vesting. To the extent not vested on the Effective Date, the Options shall terminate and be without further force and effect. Following the Termination Date, Executive shall have three months, as specified in his individual option
agreements, to exercise any vested options, after which such Options shall, to the extent unexercised, be without further force and effect. 
 
(c)    Restricted Stock.    Executive agrees that, as of the Effective
Date, he holds 540,683 shares (excluding the 221,816 shares suspended from the release from the Forfeiture Option) of common stock of the Company that are subject to forfeiture in the event that Executive’s continuous status as a service
provider to the Company terminates for any or no reason (the “Forfeiture Option”). As of the Effective Date, the 221,816 shares of Common Stock scheduled to be released from the Forfeiture Option from December 2001 through the Effective
Date, as to which the release of the Forfeiture Option has been suspended, shall immediately be released from the Forfeiture Option. In addition, as of the date the Parties sign the 

Agreement, the Company shall release from the Forfeiture Option 103,184 shares, the number of shares that would have otherwise vested and
been released from the Forfeiture Option during the six months following the Termination Date. The 437,499 shares which remain subject to the Forfeiture Option immediately following the Effective Date shall be forfeited by Executive and shall revert
to the Company in accordance with the applicable restricted stock award agreements. 
 
(d)    Lump-Sum COBRA Payment.    A lump-sum payment equal to twelve
months’ COBRA premiums at the rates in effect on the Termination Date, less applicable withholding. 
 
(e)    Outplacement Services.    Reasonable executive outplacement services
for a period of up to six months after the Effective Date. 
 
(f)    Withholding Taxes.    Executive agrees that he shall pay to the Company, within three business days of the Effective Date, an amount equal to the
Company’s required tax withholding obligations related to the release of shares from the Forfeiture Option pursuant to Section 3(c) hereof, such amount to be determined by the Company in its sole discretion. 
 
4.    Release of
Claims.    Executive agrees that the foregoing consideration represents settlement in full of all outstanding obligations owed to Executive by the Company. Executive, on behalf of himself and his respective heirs, executors
and assigns, hereby fully and forever releases the Company and its officers, directors, employees, investors, shareholders, administrators, predecessor and successor corporations, and assigns, of and from any claim, duty, obligation or cause of
action relating to any matters of any kind, whether presently known or unknown, suspected or unsuspected, that any of them may possess arising from any omissions, acts or facts that have occurred up until and including the effective date of this
Agreement including, without limitation, 
 
(a)    any and all claims relating to or arising from Executive’s employment relationship with the Company and the termination of that relationship; 
 
(b)    any and all claims
relating to, or arising from, Executive’s right to purchase, or actual purchase of shares of stock of the Company; 
 
(c)    any and all claims for wrongful discharge of employment; breach of contract, both express and
implied; breach of a covenant of good faith and fair dealing, both express and implied; negligent or intentional infliction of emotional distress; negligent or intentional misrepresentation; negligent or intentional interference with contract or
prospective economic advantage; and defamation; 
 
(d)    any and all claims for violation of any federal, state or municipal statute, including, but not limited to, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Age Discrimination in
Employment Act of 1967, the Americans with Disabilities Act of 1990, and the California Fair Employment and Housing Act; 
 
(e)    any and all claims arising out of any other laws or regulations relating to employment or
employment discrimination; and 
 
(f)    any and all claims for attorneys’ fees and costs. 
 

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The Company and Executive
agree that the release set forth in this section shall be and remain in effect in all respects as a complete general release as to the matters released. This release does not extend to any obligations incurred under this Agreement. 
 
The parties acknowledge that they have been advised by legal
counsel and are familiar with the provisions of California Civil Code Section 1542, which provides as follows: 
 
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING
THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR. 
 
The parties, being aware of said Code Section, agree to expressly waive any rights they may have thereunder, as well as under any other
statute or common law principles of similar effect. 
 
5.    Acknowledgment of Waiver of Claims under ADEA.    Executive acknowledges that he is waiving and releasing any rights he may have under the Age Discrimination in Employment Act of
1967 (“ADEA”) and that this waiver and release is knowing and voluntary. Executive agrees that this waiver and release does not apply to any rights or claims that may arise under the ADEA after the Effective Date of this Agreement.
Executive acknowledges that the consideration given for this waiver and release is in addition to anything of value to which Executive was already entitled. Executive further acknowledges that he has been advised by this writing that: (a) he should
consult with an attorney prior to executing this Agreement; (b) he has twenty-one (21) days within which to consider this Agreement; (c) he has seven (7) days following the execution of this Agreement by the Parties to revoke the Agreement;
(d) this Agreement shall not be effective until after the revocation period has expired; and (e) nothing in this Agreement prevents or precludes Executive from challenging or seeking a determination in good faith of the validity of this waiver under
the ADEA, nor does it impose any condition precedent, penalties or costs from doing so, unless specifically authorized by federal law. 
 
6.    Return of Company Property.    Executive agrees to return all Company property,
including all computing equipment, to the Company upon the effectiveness of this Agreement. 
 
7.    Indemnification.    Executive shall be entitled to indemnification, in accordance with the applicable provisions of the Company’s certificate
of incorporation and bylaws, against expense, liability and loss that Executive may incur by reason of any action, suit or proceeding arising from or relating to the performance of Executive’s duties as an officer or director of the Company or
any of its subsidiaries. 
 
8.    Mutual Non-Disparagement.    The Company agrees that its executive officers will refrain from any disparagement, criticism, defamation or slander of Executive, or tortious
interference with the contracts and relationships of Executive. Executive agrees to refrain from any disparagement, criticism, defamation or slander of the Company or its employees, or tortious interference with the contracts and relationships of
the Company. 
 
9.    No
Cooperation.    Executive agrees that he will not knowingly counsel or assist any attorneys or their clients in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints by any
third party against the Company, unless under a subpoena or other court order to do so. Executive agrees to immediately notify the Company upon receipt of any such subpoena or court order, and to furnish, within three (3) business days of its
receipt, a copy of such subpoena or court order to the Company. If approached by anyone for counsel or assistance in the presentation or prosecution of any 

 

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disputes, differences, grievances, claims, charges, or complaints against the Company, Executive shall state no more than that he cannot
provide counsel or assistance. 
 
10.    Non-Solicitation.    In consideration for the severance benefits Executive is to receive hereunder, Executive agrees that he will not, at any time during the twelve months
following the Termination Date, directly or indirectly solicit any individuals to leave the Company’s employ for any reason or interfere in any other manner with the employment relationships at the time existing between the Company and its
current or prospective employees. 
 
11.    Non-Compete.    In consideration for the benefits Executive is to receive hereunder, Executive agrees that he will not, at any time during the twelve (12) months following the
Termination Date, directly engage in (whether as an employee, consultant, proprietor, partner, or otherwise), or have any ownership interest in, or participate in the financing, operation, management or control of, any person, firm, corporation or
business that engages or participates anywhere in the United States in providing goods and services similar to those provided by the Company upon the date of Executive’s termination of employment. Ownership of less than 3% of the outstanding
voting stock of a public corporation will not constitute a violation of this provision. 
 
12.    Tax Consequences.    The Company makes no representations or warranties with respect to the tax consequences of the payment of any sums or
provision of any benefits or accelerated vesting to Executive under the terms of this Agreement. The Company will withhold sums from Executive’s compensation hereunder sufficient to satisfy the Company’s withholding obligations. Executive
agrees and understands that he is responsible for payment, if any, of his portion of the local, state and/or federal taxes on the sums paid hereunder by the Company and any penalties or assessments thereon. 
 
13.    No Admission of
Liability.    No action taken by the Parties hereto, or either of them, either previously or in connection with this Agreement shall be deemed or construed to be (a) an admission of the truth or falsity of any claims
heretofore made or (b) an acknowledgment or admission by either party of any fault or liability whatsoever to the other party or to any third party. 
 
14.    Costs.    The Parties shall each bear their own costs, expert fees, attorneys’
fees and other fees incurred in connection with this Agreement. 
 
15.    Arbitration and Equitable Relief. 
 
(a)    The Parties agree that, to the extent permitted by law, any dispute or controversy arising out
of, relating to, or in connection with this Agreement, or the interpretation, validity, construction, performance, breach, or termination thereof shall be settled by arbitration to be held in Alameda County, California, in accordance with the
National Rules for the Resolution of Employment Disputes then in effect of the American Arbitration Association (the “Rules”). The arbitrator may grant injunctions or other relief in such dispute or controversy. The decision of the
arbitrator shall be final, conclusive and binding on the parties to the arbitration. Judgment may be entered on the arbitrator’s decision in any court having jurisdiction. 
 
(b)    The arbitrator shall apply California law to the merits of any
dispute or claim, without reference to rules of conflict of law. The arbitration proceedings shall be governed by federal arbitration law and by the Rules, without reference to state arbitration law. The parties hereto hereby expressly consent to
the personal jurisdiction of the state and federal courts located in California for any action or proceeding 

 

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arising from or relating to this Agreement and/or relating to any arbitration in which the parties are participants. 
 
(c)    The Company and
Executive shall each pay one-half of the costs and expenses of such arbitration, and each party shall pay its own attorneys’ fees and expenses incurred in connection with such arbitration. 
 
(d)    THE PARTIES HERETO
HAVE READ AND UNDERSTAND SECTION 15, WHICH DISCUSSES ARBITRATION. THE PARTIES HERETO UNDERSTAND THAT BY SIGNING THIS AGREEMENT, THEY AGREE, TO THE EXTENT PERMITTED BY LAW, TO SUBMIT ANY FUTURE CLAIMS ARISING OUT OF, RELATING TO, OR IN CONNECTION
WITH THIS AGREEMENT, OR THE INTERPRETATION, VALIDITY, CONSTRUCTION, PERFORMANCE, BREACH, OR TERMINATION THEREOF TO BINDING ARBITRATION, AND THAT THIS ARBITRATION CLAUSE CONSTITUTES A WAIVER OF THEIR RIGHT TO A JURY TRIAL AND RELATES TO THE
RESOLUTION OF ALL DISPUTES RELATING TO ALL ASPECTS OF THE EMPLOYER/EMPLOYEE RELATIONSHIP, INCLUDING BUT NOT LIMITED TO, THE FOLLOWING CLAIMS: 
 
(i)  ANY AND ALL CLAIMS FOR WRONGFUL DISCHARGE OF EMPLOYMENT; BREACH OF CONTRACT, BOTH EXPRESS AND IMPLIED;
BREACH OF THE COVENANT OF GOOD FAITH AND FAIR DEALING, BOTH EXPRESS AND IMPLIED; NEGLIGENT OR INTENTIONAL INFLICTION OF EMOTIONAL DISTRESS; NEGLIGENT OR INTENTIONAL MISREPRESENTATION; NEGLIGENT OR INTENTIONAL INTERFERENCE WITH CONTRACT OR
PROSPECTIVE ECONOMIC ADVANTAGE; AND DEFAMATION. 
 
(ii)  ANY AND ALL CLAIMS FOR VIOLATION OF ANY FEDERAL STATE OR MUNICIPAL STATUTE, INCLUDING, BUT NOT LIMITED TO, TITLE VII OF THE CIVIL RIGHTS ACT OF 1964, THE CIVIL RIGHTS ACT OF 1991, THE AGE DISCRIMINATION IN EMPLOYMENT
ACT OF 1967, THE AMERICANS WITH DISABILITIES ACT OF 1990, THE FAIR LABOR STANDARDS ACT, THE CALIFORNIA FAIR EMPLOYMENT AND HOUSING ACT, AND LABOR CODE SECTION 201, et seq; 
 
(iii)  ANY AND ALL CLAIMS ARISING OUT OF ANY OTHER LAWS AND REGULATIONS RELATING TO
EMPLOYMENT OR EMPLOYMENT DISCRIMINATION. 
 
16.    Authority.    The Company represents and warrants that the undersigned has the authority to act on behalf of the Company and to bind the Company and all who may claim through it
to the terms and conditions of this Agreement. Executive represents and warrants that he has the capacity to act on his own behalf and on behalf of all who might claim through him to bind them to the terms and conditions of this Agreement.

 
17.    No
Representations.    Each party represents that it has had the opportunity to consult with an attorney, and has carefully read and understands the scope and effect of the provisions of this Agreement. Neither party has relied
upon any representations or statements made by the other party hereto which are not specifically set forth in this Agreement. 
 

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18.    Severability.    In the event that any provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement shall
continue in full force and effect without said provision. 
 
19.    Entire Agreement.    This Agreement, along with the previously executed Employment, Confidential Information, Invention Assignment and Arbitration Agreement and any applicable
stock option agreements and restricted stock award agreements (as modified in Section 3 above), represent the entire agreement and understanding between the Company and Executive concerning Executive’s employment transition and eventual
separation from the Company, and supersedes, replaces and fully discharges all obligations under any and all prior agreements and understandings concerning Executive’s relationship with the Company and his compensation by the Company.

 
20.    No Oral
Modification.    This Agreement may only be amended in writing signed by Executive and the Company’s Chief Executive Officer. 
 
21.    Effective Date.    This Agreement will become effective after it has been signed by
both Parties and after seven days have passed since Executive signed the Agreement. 
 
22.    Cooperation with the Company.    Executive agrees to cooperate fully with the Company, including but not limited to, responding to reasonable
requests from the Company’s Chief Executive Officer, Chief Financial Officer or the Company’s legal counsel in connection with any and all existing or future litigation related to the Company. Executive also agrees to furnish upon
reasonable request, information necessary in order to assist the Company in meeting the Company’s reporting requirements and Executive’s continuing Section 16 reporting obligations on a timely manner and as prescribed by the then current
SEC and/or Nasdaq rules. Executive understands that he remains subject to the SEC and Nasdaq prohibitions on insider trading even after the Effective Date of this Agreement. 
 
23.    Counterparts.    This Agreement may be executed in
counterparts, and each counterpart shall have the same force and effect as an original and shall constitute an effective, binding agreement on the part of each of the undersigned. 
 
24.    Voluntary Execution of Agreement.    This Agreement is
executed voluntarily and without any duress or undue influence on the part or behalf of the Parties hereto, with the full intent of releasing all claims. The Parties acknowledge that: 
 
(a)    They have read this Agreement; 
 
(b)    They have been
represented in the negotiation and execution of this Agreement by legal counsel of their own choice or that they have voluntarily declined to seek such counsel; 
 
(c)    They understand the terms and consequences of this Agreement and
of the releases it contains; 
 
(d)    They are fully aware of the legal and binding effect of this Agreement. 
 

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IN WITNESS
WHEREOF, the Parties have executed this Agreement. 
 

	  Avanex Corporation
	  	  	  	  Executive

	
	  By:
	  	  /S/    WALTER
ALESSANDRINI        
	  	  	  	  /S/    PAUL ENGLE
        

	  	  	
	  	  	  	

	  	  	  Walter Alessandrini, Chairman
	  	  	  	  Paul Engle

	
	  Date:  November 18, 2002
	  	  	  	  Date:  November 18, 2002

 

-7-Severance Agreement - Jessy Chao

  
 Exhibit 10.3 
  
 SEVERANCE AGREEMENT AND RELEASE 
  
 This Severance Agreement and Release (the “Agreement”) is made by and between Avanex Corporation (the “Company”) and Jessy Chao (“Employee”). 
  
 WHEREAS, Employee was employed by the Company; 
  
 WHEREAS, Employee signed an Employment, Confidential Information, Invention Assignment and Arbitration Agreement with the Company on February 2, 1998 (the “Confidentiality Agreement”);

  
 WHEREAS, the Company and Employee have entered into a stock option agreement, dated November 5, 2001, granting
Employee an option (the “Option”) to purchase shares of the Company’s common stock, subject to the terms and conditions of the Company’s 1998 Stock Plan and the stock option agreement, including any amendments thereto (the
“Stock Option Agreement”); 
  
 WHEREAS, the Company and Employee have entered into a restricted stock
purchase agreement dated November 26, 1999, pursuant to which Employee was granted shares of restricted Company common stock subject to the terms and conditions of the Company’s 1998 Stock Plan and the restricted stock purchase agreement,
including any amendments thereto (the “Restricted Stock Purchase Agreement” and further subject to the Company’s Repurchase Option, as set forth in the Restricted Stock Purchase Agreement; 
  
 WHEREAS, Employee’s employment was terminated on October 31, 2002, (the “Termination Date”); and 
  
 NOW THEREFORE, in consideration of the mutual promises made herein, the Company and Employee (jointly referred to as “the
Parties”) hereby agree as follows: 
  
 1. Consideration. 
  

	 	(a)
	 
	Severance Payment. In consideration for the execution by Employee of this Agreement no sooner than November 21, 2002 and no later than December
18, 2002, the Company agrees to pay Employee the following consideration: 
 

  

	 	(1)
	 
	within ten (10) days of the execution of this Agreement by Employee, the sum of Eighty-Two Thousand Dollars and No Cents ($82,000.00); and 

  

	 	(2)
	 
	the sum of Ten Thousand and Two Hundred Fifty Dollars and No Cents ($10,250.00) per month, less applicable withholding, paid monthly in arrears, for the period
of twelve (12) months OR until Employee secures other employment with a passive or active optical company, OR until Employee becomes a paid consultant for a passive or active optical 
 

 

  
 company other than the Company (irrespective of the means of compensation),
whichever occurs first. Employee agrees to notify the Company immediately upon either securing new employment or accepting a position as a paid consultant with a passive or active optical company other than the Company (irrespective of the means of
compensation). If Employee fails to inform the Company of the new employment or consultant relationship and the Company continues to pay Employee under this section, the Company reserves the right to seek reimbursement of such payments from
Employee. 
  
 The first installment payment under this subsection (2) will be made by the Company on the first
regular pay date following the Effective Date of this Agreement, as defined below, but in no event sooner than December 3, 2002 or later than December 18, 2002. The Company, in its sole discretion, reserves the right to discontinue these payments if
Employee secures other employment with a passive or active optical company OR becomes a paid consultant for a passive or active optical company other than the Company (irrespective of the means of compensation). 
  

	 	(b)
	 
	Employer COBRA Payment. If Employee elects to continue his group health insurance coverage pursuant to COBRA after the Termination Date, Employee
must continue to pay that portion of the premium for his group health insurance coverage that he was required to pay as an active employee before the termination of his employment. However, the Company agrees to pay for the remaining portion of
COBRA coverage (excluding Employee’s portion) for a period of twelve (12) months beginning the first day of the new month after the Termination Date, OR until Employee has secured employment with or becomes a paid consultant (irrespective of
the means of compensation) to a passive or active optical company other than the Company through which Employee obtains group health insurance coverage entitling the Company to discontinue COBRA benefits, whichever occurs first, provided Employee
timely elects and pays his portion of COBRA coverage. 
 

  

	 	(c)
	 
	Restricted Stock. Within ninety (90) days after the termination of Employee’s employment, the Company shall repurchase Employee’s then
unvested shares of restricted stock granted on November 26, 1999 (the “Restricted Stock”). The price to be paid by the Company for such shares (the “Repurchase Price”) shall be $2.67 per share (the exercise price
per share, as adjusted). The Parties agree that the Repurchase Price (1) shall first be applied to the repayment of the total unpaid principal balance and interest accrued as of the date of repayment of Employee’s promissory to relating to the
Restricted Stock, and (2) any remaining balance of the Repurchase Price shall then be paid to Employee. 
 

  

 
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	 	(d)
	 
	Severance Plan. Employee shall be a participant in the Avanex Corporation Severance Plan (the “Severance Plan”). In that regard,
this Agreement shall constitute a “Supplement” (as defined in the Severance Plan) and the benefits and payments payable under the Severance Plan shall be limited to the payments and benefits set forth in this Agreement. The releases
provided in this Agreement fully satisfy the provision at Section 5.1.3 of the Severance Plan requiring the execution of a waiver and release of certain described claims. 
 

  

	 	(e)
	 
	Characterization of Termination. The Company shall process the termination of Employee’s employment as the result of a layoff, and shall
represent that Employee was laid off from his employment to any potential future employer who contacts the Company’s human resources department and requests confirmation of this information. 
 

  
 2. Stock. Employee agrees that as of November 1, 2002, (1) he had not vested in any shares subject to the Option, and (2) 109,375
shares of the Company’s common stock shall have been released from the Company’s Repurchase Option under the Restricted Stock Purchase Agreement. The Repurchase Option shall continue to exist with respect to the remaining 40,625 shares
purchased by the Employee. Employee shall not be entitled to additional investment with respect to the Option after termination of his employment and no further shares shall be released from the Company’s Repurchase Option under the Restricted
Stock Purchase Agreement after the Termination Date. The terms of Employee’s Option and Restricted Stock shall continue to be subject to all other terms of the Company’s 1998 Stock Plan, the Stock Option Agreement and the Restricted Stock
Purchase Agreement. 
  
 3. Benefits. Employee’s health insurance benefits with the Company shall cease on
October 31, 2002, subject to Employee’s right to continue his health insurance under COBRA. All other benefits and incidents of employment shall cease on the Termination Date. 
  
 4. Payment of Salary. Employee acknowledges and represents that the Company has paid all salary, wages, bonuses, accrued PTO, interest, outplacement costs, fees,
stock, stock options, vesting, commissions and any and all other benefits and compensation due to Employee as of the Effective Date of this Agreement. Employee acknowledges represents that Company will have paid all severance pay and benefits due to
Employee once the benefits outlined in paragraph 1(a) through (c) have been provided to Employee. 
  
 5. Release
of Claims. Employee agrees that the foregoing consideration represents settlement in full of all outstanding obligations owed to Employee by the Company and it current and former officers, directors, employees, agents, investors, attorneys,
shareholders, administrators, affiliates, divisions, subsidiaries, predecessor and successor corporations and assigns (the “Releasees”). Employee hereby and forever releases the Releasees from, and agrees not to sue concerning, or
in any manner to institute, prosecute or pursue, any claim, complaint, charge, duty, obligation or cause of action relating to any matters of any kind, whether presently known or unknown, suspected or unsuspected, that Employee may possess against
any of the Releasees arising from any omissions, acts or facts that have occurred up until and including the Effective Date of this Agreement including, without limitation: 
  

 
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 (a) any and all claims relating to or arising out of Employee’s employment
relationship with the Company and the termination of that relationship; 
  
 (b) any and all claims relating to, or
arising from, Employee’s right to purchase, or actual purchase of shares of stock of the Company, including, without limitation, any claims for fraud, misrepresentation, breach of fiduciary duty, breach of duty under applicable state corporate
law, and securities fraud under any state or federal law; 
  
 (c) any and all claims for wrongful discharge of
employment; termination in violation of public policy; discrimination; harassment; retaliation; breach of contract, both express and implied; breach of a covenant of good faith and fair dealing, both express and implied; promissory estoppel;
negligent or intentional infliction of emotional distress; negligent or intentional misrepresentation; negligent or intentional interference with contract or prospective economic advantage; unfair business practices; defamation; libel; slander;
negligence; personal injury; assault; battery; invasion of privacy; false imprisonment; conversion; and disability benefits; 
  
 (d) any and all claims for violation of any federal, state or municipal statute, including, but not limited to, Title VII of the Civil Rights Act of 1964; the Civil Rights Act of 1991; the Americans with Disabilities Act of 1990; the
Fair Labor Standards Act; the Fair Credit Reporting Act; the Age Discrimination in Employment Act of 1967; the Employee Retirement Income Security Act of 1974; the Worker Adjustment and Retraining Notification Act; the Family and Medical Leave Act;
the California Fair Employment and Housing Act and the California Labor Code; 
  
 (e) any and all claims for
violation of the federal, or any state, constitution; 
  
 (f) any and all claims arising out of any other laws and
regulations relating to employment or employment discrimination; 
  
 (g) any claim for any loss, cost, damage, or
expense arising out of any dispute over the non-withholding or other tax treatment of any of the proceeds received by Employee as a result of this Agreement; and 
  
 (h) any and all claims for attorneys’ fees and costs. 
  
 Except for those obligations
created by or arising out of this Agreement, the Company, on behalf of itself and its officers, directors, shareholders and employees, hereby acknowledges full and complete satisfaction of and releases and discharges, and covenants not to sue,
Employee from and with respect to any and all claims, agreements, obligations, losses, damages, injuries, demands and causes of action, known or unknown, suspected or unsuspected, arising out of or in any way connected with Employee’s
employment or termination from the Company, or any other occurrences, actions, omissions or claims whatever, known or unknown, suspected or unsuspected, which the Company now owns or holds or has at any time heretofore owned or held as against
Employee. 
  

 
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 The foregoing releases do not abrogate either party’s rights or obligations under applicable law to
defend or indemnify the other party against a claim filed by a third party. 
  
 The parties acknowledge and agree that any breach of any
provision of this Agreement or the Confidentiality Agreement shall constitute a material breach of this Agreement. 
  
 The parties agree
that the releases set forth in this section shall be and remain in effect in all respects as a complete general release as to the matters released, to the maximum extent provided by law. These releases do not extend to any obligations incurred under
this Agreement. 
  
 6. Civil Code Section 1542. Each party represents that he or it is not aware of a claim by
him or it other than the claims that are released by this Agreement. Each party acknowledges that he or it has had the opportunity to be advised by legal counsel and is familiar with the provisions of California Civil Code Section 1542, which
provides as follows: 
  
 A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO
EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR. 
  
 Each party, being aware of said code section, agrees to expressly waive any rights he or it may have thereunder, as well as under any other statute or common law principles of similar effect. 
  
 7. No Pending or Future Lawsuits. Each party represents that he or it has no lawsuits, claims, or actions pending in his or its
name, or on behalf of any other person or entity, against each other or any of the Releasees. Each party also represents that he or it does not intend to bring any claims on his or its own behalf or on behalf of any other person or entity against
the Company or any other person or entity referred to herein. 
  

 
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 8. Application for Employment. Employee understands and agrees that, as a
condition of this Agreement, he shall not be entitled to any employment with the Company, and he hereby waives any right, or alleged right, of employment or re-employment with the Company. Employee further agrees that he will not apply for
employment with the Company. 
  
 9. Confidentiality. Employee agrees to maintain in complete confidence the
existence of this Agreement, the contents and terms of this Agreement and the consideration for this Agreement (hereinafter collectively referred to as “Severance Information”). Except as required by law, Employee may disclose Severance
Information only to his immediate family members, a Court in any proceedings to enforce the terms of this Agreement, Employee’s legal counsel, his accountant and any professional tax advisor to the extent that they need to know the Severance
Information in order to provide advice on tax treatment or to prepare tax returns, and must inform any such third party of the confidential nature of the Severance Information. Employee agrees that he will not publicize, directly or indirectly, any
Severance Information. Employee states that he has not disclosed the terms of this Agreement, or of earlier negotiation drafts of this Agreement, to anyone except such persons as authorized under this Paragraph and Paul Jiang. 

 
 For its part, the Company will maintain the confidentiality of the terms of this Agreement by disclosing its terms only to those who have a legitimate
business-related need to know, including the Company’s legal and financial advisers. 
  
 10. Trade
Secrets and Confidential Information/Company Property. Employee reaffirms and agrees to observe and abide by the terms of the Confidentiality Agreement, specifically including the provisions therein regarding nondisclosure of the
Company’s trade secrets and confidential and proprietary information, and non-solicitation of Company employees. Employee’s signature below constitutes his certification under penalty of perjury that he has returned all documents and other
items provided to Employee by the Company, developed or obtained by Employee as a result of his employment with the Company or otherwise belonging to the Company. 
  
 11. No Cooperation. Employee agrees that he will not knowingly counsel or assist any attorneys or their clients in the presentation or prosecution of any disputes,
differences, grievances, claims, charges, or complaints by any third party against any of the Releasees, unless under a subpoena or other court order to do so. Employee agrees both to immediately notify the Company upon receipt of any such subpoena
or court order, and to furnish, within three (3) business days of its receipt, a copy of such subpoena or court order to the Company. If approached by anyone for counsel or assistance in the presentation or prosecution of any disputes, differences,
grievances, claims, charges, or complaints against any of the Releasees, Employee shall state no more than that he cannot provide counsel or assistance. 
  

 
 -6- 

 Company agrees that it will not knowingly counsel or assist any attorneys or their clients in the presentation or prosecution of any disputes,
differences, grievances, claims, charges, or complaints by any third party against the Employee, unless under a subpoena or other court order to do so. Company agrees both to immediately notify the Employee upon receipt of any such subpoena or court
order, and to furnish, within three (3) business days of its receipt, a copy of such subpoena or court order to the Employee. If approached by anyone for counsel or assistance in the presentation or prosecution of any disputes, differences,
grievances, claims, charges, or complaints against the Employee, Company shall state no more than that it cannot provide counsel or assistance. 
  
 12. Nonsolicitation. From the date of this Agreement until 12 months after the execution of this Agreement by Employee (the “Restricted Period”), Employee will not, without the
Company’s prior written consent, directly or indirectly, solicit or encourage any employee or contractor of the Company or its affiliates to terminate employment with, or cease providing services to, the Company or its affiliates. During the
Restricted Period, Employee will not, whether for his own account or for the account of any other person, firm, corporation or other business organization, interfere tortiously on an intentional basis with any person who is or during the period of
Employee’s employment by the Company was a partner, supplier, customer or client of the Company or its affiliates. During the Restricted Period, Employee agrees not to seek or accept employment with a passive or active optical company without
the Company’s prior written consent. 
  
 13. Non-Disparagement. Employee agrees to refrain from any
defamation, libel or slander of the Releasees, and any tortious interference with the contracts, relationships and prospective economic advantage of the Releasees. Employee agrees that he shall direct all inquiries by potential future employers to
the Vice President of Human Resources. Company agrees that it, its officers and directors will refrain from any defamation, libel or slander of Employee, and any tortious interference with the contracts, relationships and prospective economic
advantage of Employee, for as long as such officers and directors are employed by the Company. The Company’s obligations under this Paragraph with respect to its officers and directors will continue for such period of time as the directors and
officers remain employed by or affiliated with the Company. 
  
 14. No Admission of Liability. The parties
acknowledge that this Agreement constitutes a compromise and settlement of any and all potential disputed claims. No action taken by either party hereto, either previously or in connection with this Agreement shall be deemed or construed to be: (a)
an admission of the truth or falsity of any potential claims; or (b) an acknowledgment or admission by either party of any fault or liability whatsoever to the other party or to any third party. 
  

15. Costs. Each party shall bear its or his own costs, attorneys’ fees and courier fees incurred in connection with the preparation of this Agreement.

  

 
 -7- 

  
 16. ARBITRATION. THE PARTIES AGREE THAT ANY AND ALL DISPUTES ARISING OUT
OF THE TERMS OF THIS AGREEMENT, THEIR INTERPRETATION, AND ANY OF THE MATTERS HEREIN RELEASED, SHALL BE SUBJECT TO ARBITRATION IN ALAMEDA COUNTY, BEFORE THE AMERICAN ARBITRATION ASSOCIATION UNDER ITS NATIONAL RULES FOR THE RESOLUTION OF EMPLOYMENT
DISPUTES AND CALIFORNIA, LAW. THE ARBITRATOR MAY GRANT INJUNCTIONS AND OTHER RELIEF IN SUCH DISPUTES. THE DECISION OF THE ARBITRATOR SHALL BE FINAL, CONCLUSIVE AND BINDING ON THE PARTIES TO THE ARBITRATION. THE PARTIES AGREE THAT THE PREVAILING
PARTY IN ANY ARBITRATION SHALL BE ENTITLED TO INJUNCTIVE RELIEF IN ANY COURT OF COMPETENT JURISDICTION TO ENFORCE THE ARBITRATION AWARD. THE PARTIES HEREBY AGREE TO WAIVE THEIR RIGHT TO HAVE ANY DISPUTE BETWEEN THEM RESOLVED IN A COURT OF LAW BY
JUDGE OR JURY. 
  
 17. Tax Consequences. The Company makes no representations or warranties with respect to
the tax consequences of the payments provided to Employee or made on his behalf under the terms of this Agreement. 
  
 18. Authority. The Company represents and warrants that the undersigned has the authority to act on behalf of the Company and to bind the Company and all who may claim through it to the terms and conditions of this Agreement.
Employee represents and warrants that he has the capacity to act on his own behalf and on behalf of all who might claim through him to bind them to the terms and conditions of this Agreement. Each Party warrants and represents that there are no
liens or claims of lien or assignments in law or equity or otherwise of or against any of a claims or causes of action released herein. 
  
 19. No Representations. Each party represents that he or it has had the opportunity to consult with an attorney, and has carefully read and understands the scope and effect of the provisions of this Agreement. Each
party has not relied upon any representations or statements made by the other which are not specifically set forth in this Agreement. 
  
 20. Severability. In the event that any provision or any portion of any provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue
in full force and effect without said provision or portion of provision. 
  
 21. Attorneys’ Fees. Except
as provided in paragraph 5 hereof, in the event that either Party brings an action to enforce or effect its rights under this Agreement, the prevailing party shall be entitled to recover its costs and expenses, including the costs of mediation,
arbitration, litigation, court fees, plus reasonable attorneys’ fees, incurred in connection with such an action. 
  
 22. Entire Agreement. This Agreement represents the entire agreement and understanding between the Company and Employee concerning Employee’s employment with and separation from the Company and the events leading thereto
and associated therewith, and supersedes and replaces any and all prior agreements and understandings concerning Employee’s relationship with the Company, with the exception of the Confidentiality Agreement, the Company’s 1998 Stock Plan,
the Restricted Stock Purchase Agreement and the Stock Option Agreement. 
  

 
 -8- 

  
 23. No Oral Modification. This Agreement may only be amended in a writing
signed by Employee and the Company’s Chief Executive Officer. 
  
 24. Governing. This Agreement shall be
governed by the laws of the State of California, without regard for its choice of law rules. 
  
 25. Effective
Date. This Agreement will become effective after it has been signed by both Parties. 
  
 26. Counterparts.
This Agreement may be executed in counterparts and by facsimile, and each counterpart and facsimile shall have the same force and effect as an original and shall constitute an effective, binding agreement on the part of each of the undersigned.

  
 27. Voluntary Execution of Agreement. This Agreement is executed voluntary and without any duress or undue
influence on the part or behalf of the Parties hereto, with the intent of releasing all claims. The Parties acknowledge that: 
  
 (a) They have read this Agreement; 
  
 (b) They have been represented in the negotiation, and
execution of this Agreement by legal counsel of their own choice or have elected no to retain legal counsel; 
  
 (c)
They understand the terms and consequences of this Agreement and of the releases it contains; and 
  
 (d) They are
fully aware of the legal and binding effect of this Agreement. 

 
 -9- 

 
IN WITNESS
WHEREOF, the Parties have executed this Agreement on the respective dates set forth below. 
 

	  	  	  	  	  AVANEX CORPORATION

	
	  	  	  	  	  	  	  	  	  
	  Dated:
	  	  11/21/02

	  	  	  	  By:
	  	  /s/ Walter Alessandrini

	  	  	  	  	  	  	  	  	  Walter Alessandrini, President and CEO

	
	   
  Dated:
	  	  11/21/02

	  	  	  	  By:
	  	  /s/ Jessy Chao

	  	  	  	  	  	  	  	  	  Jessy Chao

 
 
 
 
 
 
 
 

-10-

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