Document:

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                                                                    EXHIBIT 10.2

                                                      Corning License No. L03273

NOTE: Information in this document marked with an "[*]" has been omitted and
filed separately with the Commission. Confidential treatment has been requested
with respect to the omitted portions.

             INTELLECTUAL PROPERTY RIGHTS AGREEMENT BETWEEN CORNING
           INCORPORATED AND AVANEX CORPORATION RELATING TO PHOTONICS

This Intellectual Property Rights Agreement ("IP Agreement") is agreed to and
entered into by and between Corning Incorporated, a New York corporation having
a principal place of business at One Riverfront Plaza, Corning, NY 14831
("Corning") and Avanex Corporation, a Delaware corporation having a principal
place of business at 40919 Encyclopedia Circle, Fremont, CA 94538 ("Avanex").
Hereinafter, these two corporations may be referred to individually as a "Party"
and collectively as "Parties", as the context requires.

The Parties, along with Alcatel Alstrom ("Alcatel"), are parties to a Purchase
Agreement (as defined hereinafter) pursuant to which, among other things, Avanex
is purchasing or otherwise acquiring rights in or to certain assets of Corning
related to business operations of Corning and/or its Subsidiaries, and products
related to those business operations. This IP Agreement is meant to definitively
establish Avanex's and Corning's respective rights regarding the intellectual
property which is included among the assets being purchased or otherwise
acquired.

Therefore, in consideration of the mutual premises recited in this IP Agreement
as well as the associated payments and other consideration recited in the
Purchase Agreement, the Parties agree as follows, to become effective only upon
the Asset Purchase Closing (as defined hereinafter):

1.       DEFINITIONS.

1.1      "ASSET PURCHASE CLOSING" is as defined in the Purchase Agreement.

1.2      "CORNING ASSIGNED COPYRIGHTS" shall mean (i) those registered
         Copyrights and applications for registration of Copyright owned by
         Corning or its Subsidiaries as of the Asset Purchase Closing and which
         are used exclusively in connection with the Corning OCM Products, and
         (ii) unregistered copyrights in the following material owned by Corning
         or its Subsidiaries as of the Asset Purchase Closing and which are used
         exclusively in connection with the Corning OCM Products: product
         schematics, product descriptions, manufacturing instructions, written
         specifications, laboratory notebooks, computer programs and software
         tools, drawings and manuals.

1.3      "CORNING ASSIGNED IP" shall mean collectively the Corning Assigned
         Patents, the Corning Assigned Copyrights and the Corning Assigned
         Trademarks.

1.4      "CORNING ASSIGNED PATENTS" shall mean (a) the Patents listed in Exhibit
         1.4 attached hereto and (b) any Patents owned by Corning or its
         Subsidiaries (but excluding Corning Cable Systems and Technical
         Materials and their respective Subsidiaries) that primarily relate to
         the design, development, assembly, manufacture, production, testing,
         storage,

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                                                      Corning License No. L03273

         transportation or delivery of Corning OCM Products and are filed after
         the date of the signing of the Purchase Agreement until one hundred
         eighty (180) days after the Asset Purchase Closing; provided, however,
         that this clause (b) shall not include (i) any Patents which relate to
         [*], (iii) any Patent acquired from a third party after the Asset
         Purchase Closing, or (iv) any Patents owned by Corning Cable Systems.

1.5      "CORNING ASSIGNED TRADEMARKS" shall mean those trademarks and service
         marks, registered and unregistered, applications and renewals therefor,
         trade names, logos, company names and domain names owned by Corning or
         its Subsidiaries as of the Asset Purchase Closing listed in Exhibit 1.5
         attached hereto.

1.6      "CORNING CABLE SYSTEMS" shall mean the Subsidiary of Corning known as
         Corning Cable Systems LLC and its Subsidiaries which is involved in the
         design, development, assembly, manufacture, production, testing,
         storage, transportation and delivery of (a) products described in the
         definition of Hardware and Equipment, and (b) Cable Products, i.e., (i)
         optical, electrical and composite optical-electrical cables, (ii) cable
         components, (iii) cable installations including, without limitation,
         inside or outside plant or premises networks installations, and (d)
         marine or submarine cables.

1.7      "CORNING COMMERCIALIZED OCM PRODUCTS" shall mean those specific Corning
         OCM Products listed in Exhibit 1.7 attached hereto, which had been
         marketed and sold to the general public as of the Asset Purchase
         Closing.

1.8      "CORNING LICENSED COPYRIGHTS" shall mean those Copyrights and
         copyrightable works, registered and unregistered, and applications for
         registration thereof that are either owned by Corning or its
         Subsidiaries (excluding Corning Cable Systems) or to which Corning or
         its Subsidiaries (excluding Corning Cable Systems) have sublicensing
         rights, and which have been used, but not exclusively, in connection
         with the design, development, assembly, manufacture, production,
         testing, storage, transportation or delivery of Corning OCM Products.
         Notwithstanding the foregoing, Corning Licensed Copyrights shall not
         include any system simulation software.

1.9      "CORNING LICENSED KNOW-HOW" shall mean the proprietary non-patented
         information, inventions and technology that are either owned by Corning
         or its Subsidiaries or to which Corning or its Subsidiaries have
         sublicensing rights (but in each case excluding Corning Cable Systems
         and Technical Materials and their respective Subsidiaries) which as of
         the Asset Purchase Closing was necessary for or used in the design,
         development, assembly, manufacture, production, testing, storage,
         transportation or delivery of Corning OCM Products and was in the
         possession of the employees of either Corning or its Subsidiaries,
         including the contents of invention disclosures or laboratory
         notebooks, computer programs and software tools, drawings, manuals,
         data, trade secrets, manufacturing processes, formulas, testing
         methodologies, designs and samples.

         [*] Certain information on this page has been omitted and filed
         separately with the Commission. Confidential treatment has been
         requested with respect to the omitted portions.

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                                                      Corning License No. L03273

         Notwithstanding the foregoing, Corning Licensed Know-How shall not
         include technical information (a) owned by Corning Cable Systems or
         Technical Materials or their respective Subsidiaries, or (b) related to
         optical fiber, switching, MEMS (micromechanical systems), VCSEL's
         (vertical cavity surface emitting lasers), [*]. It is understood and
         acknowledged, however, that Corning Licensed Know-How shall include any
         proprietary non-patented information, inventions and technology which,
         as of the Asset Purchase Closing, was necessary for or used in the
         design, development, assembly, manufacture, production, testing,
         storage, transportation or delivery of the Corning Commercialized OCM
         Products and which is delivered to Avanex pursuant to this IP Agreement
         or the Purchase Agreement, that would otherwise be excluded from
         Corning Licensed Know-How by the preceding sentence, unless, to
         Avanex's knowledge or the knowledge of any former Corning employee who
         becomes employed by Avanex subsequent to the Asset Purchase Closing, it
         falls within the exclusions of the preceding sentence.

1.10     "CORNING NON-EXCLUSIVE LICENSED PATENTS" shall mean (a) those Patents
         listed in Exhibit 1.10 attached hereto, (b) all Patents owned by
         Corning or its Subsidiaries (excluding Corning Cable Systems) or to
         which Corning or its Subsidiaries (excluding Corning Cable Systems)
         have sublicensing rights: (i) that are entitled to an effective filing
         date in the period beginning on the signing date of the Purchase
         Agreement and terminating one hundred eighty (180) days after the Asset
         Purchase Closing, and (ii) for which the named inventors were employed
         in the Technical Materials business at the time the invention was
         conceived or first reduced to practice.

1.11     "CORNING SOLELY LICENSED PATENTS" shall mean (a) those Patents (other
         than those listed in Exhibit 1.10) owned by Corning or its
         Subsidiaries, or to which Corning or its Subsidiaries have sublicensing
         rights , as of the date of signing of the Purchase Agreement that,
         although having use for the design, development, assembly, manufacture,
         production, testing, storage, transportation or delivery of Corning OCM
         Products, are usable with, or have application to, other products,
         fields or businesses, and (b) those Patents owned by Corning or its
         Subsidiaries as of the Asset Purchase Closing that relate primarily to
         [*], as well as, in each case, any such Patents (other than those
         included in subsection (b) of Section 1.10 above) that are entitled to
         an effective filing date in the period beginning on the signing date of
         the Purchase Agreement and terminating one hundred eighty (180) days
         after the Asset Purchase Closing. However, this definition shall not
         include any Patents which are: (i) related to [*], (iv) any of the
         Patents listed in Exhibit 1.11a, attached hereto; (v) any Patents
         acquired from a third party after the Asset Purchase Closing, (vi) any
         Patents owned by Corning Cable Systems other than those listed in
         Exhibit 1.11b, or (vii) any Patents for which Corning Cable Systems
         alone has a right to grant sublicensing rights.

         [*] Certain information on this page has been omitted and filed
         separately with the Commission. Confidential treatment has been
         requested with respect to the omitted portions.

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                                                      Corning License No. L03273

 1.12    "CORNING OCM PRODUCTS" shall mean the products of Corning or its
         Subsidiaries that are within the product categories set forth in
         Exhibit 1.12 attached hereto, including any such products under
         development.

1.13     "CORNING THIRD PARTY IP" shall mean the Intellectual Property licensed
         to Corning or its Subsidiaries under a Corning Third Party IP Contract.

1.14     "CORNING TRANSFERRED THIRD PARTY IP CONTRACTS" shall mean all contracts
         set forth in Exhibit 1.14 attached hereto.

1.15     "DIAMOND TURNING" means the business unit of Corning that deals with
         the use of diamond tools, air bearings, stable platforms and precision
         feedback mechanisms to achieve optical quality finishes on various
         materials, including, but not limited to, aluminum, electroless nickel,
         brass, copper and IR (infrared) crystals.

1.16     "DISPERSION COMPENSATION MODULE" means a device, separate from a coated
         or cabled optical fiber and packaged within its own container, intended
         to compensate for the chromatic degradation of an optical signal
         propagating in the optical fiber over a distance greater than 10 km;
         provided, however, that although a Dispersion Compensation Module
         includes dispersion-compensating optical fiber, a
         dispersion-compensating optical fiber by itself shall not be considered
         to be a Dispersion Compensation Module.

1.17     "FIBER SUPPLY AGREEMENT" means that certain Fiber Supply Agreement
         entered into by Corning and Avanex under which Avanex has certain
         obligations to purchase dispersion-compensating optical fiber from
         Corning.

1.18     "HARDWARE & EQUIPMENT" means the business unit of Corning that deals
         with: (a) fiber optic hardware including without limitation fiber optic
         connectors, adapters, the purchase and resale of variable attenuators,
         fixed attenuators, fiber optic cable assemblies, joint wrappers/covers,
         splitters and taps (fused fiber), and filters; (b) cable installations
         including without limitation inside or outside plant, or premises
         networks installations, data, CATV, or telephone network electrical or
         fiber optic joints or terminations including without limitation
         electrical circuit connection or protection, distribution frames and
         components, digital subscriber lines and splitters, housings, network
         interface devices, measurement devices (i.e., OTDRs, hand-held optical
         meters for testing optical circuits such as for wavelength and power
         measurement and optical traffic and throughput and traffic indication,
         fault locators), testers and test units; (c) aerial network
         transmission products including without limitation lashing, fastening,
         jointing, terminating or insulating; (d) splicing equipment including
         without limitation optical fusion splicing equipment; and (e) fiber
         optic hardware and equipment for marine or submarine networks.

1.19     "INTELLECTUAL PROPERTY" shall mean any or all of the following and all
         rights in, arising out of, or associated therewith: (i) Patents, (ii)
         all inventions (whether patentable or not), invention disclosures,
         improvements, trade secrets, proprietary information, know how,

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                                                      Corning License No. L03273

         technology, technical data, and all documentation relating to any of
         the foregoing ("KNOW-HOW"), (iii) all copyrights, copyrights
         registrations and applications for registration thereof ("COPYRIGHTS"),
         (iv) all industrial designs and any registrations and applications
         therefor throughout the world, and (v) all databases and data
         collections and all rights therein throughout the world, and (vi) all
         equivalent rights under the laws of any jurisdiction.

1.20     "PATENT" shall mean any and all forms of patents issued or granted
         anywhere in the world, reissued and reexamined patents, continuations,
         continuations-in-part, divisions and extensions thereof, applications
         therefor and any patents which may issue on such applications, in each
         case which have not been abandoned or expired.

1.21     "PURCHASE AGREEMENT" means that certain Share Acquisition and Asset
         Purchase Agreement, among Avanex, Corning and Alcatel that establishes
         the underlying transaction related to the purchase or acquisition of
         Corning's assets as contemplated by the Parties.

1.22      "AVANEX COMPETITOR" means the entities listed in Exhibit 1.22 and any
          successor to the entities. [*] within every [*] period after the Asset
          Purchase Closing, Avanex may substitute [*] new entities for those
          currently on the list by providing written notice to Corning.

1.23     "SUBSIDIARY" shall mean, when used with respect to any party, any
         corporation or other organization, whether incorporated or
         unincorporated, at least a majority of the securities or other
         interests of which having by their terms ordinary voting power to elect
         a majority of the Board of Directors or others performing similar
         functions with respect to such corporation or other organization is
         directly or indirectly owned or controlled by such party or by any one
         or more of its subsidiaries, or by such party and one or more of its
         subsidiaries.

1.24     "TECHNICAL MATERIALS" means the business unit of Corning (including the
         business unit called Photonic Materials) that deals with various
         micromaterials and microlenses suitable for a variety of optical
         components including, but not limited to, lensed fibers, GRIN (gradient
         index) lenses, glass polarizers, optical element-holding devices (i.e.,
         devices for holding, positioning and aligning micromaterials and
         microlenses), fiber arrays, collimator arrays (i.e., functional arrays
         made by combining various holding, positioning and aligning devices and
         lensing technologies included within this definition) and lens arrays.

2.       ASSIGNMENT OF CORNING ASSIGNED PATENTS.

[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

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                                                      Corning License No. L03273

2.1      At the Asset Purchase Closing, subject to the terms and conditions set
         forth in this IP Agreement, Corning or the applicable Subsidiary shall
         sell, convey, transfer and assign all of Corning's or its Subsidiary's
         right, title and interest in and to the Corning Assigned Patents to
         Avanex or one or more of its designated Subsidiaries, and Avanex or one
         or more of its designated Subsidiaries shall purchase from Corning such
         right, title and interest.

2.2      If, due to the fact that either (a) any Corning Assigned Patent claims
         priority from any Patent retained by Corning or its Subsidiaries or (b)
         any Patent retained by Corning or its Subsidiaries claims priority to
         any Corning Assigned Patent, either Party is impeded in its ability
         either to license a third party under a particular Patent or to assert
         a particular Patent against a third party, the Parties will cooperate
         in good faith with each other to resolve such issue, including one of
         the Parties extending to the other Party a reasonable offer to sell or
         license such Patents needed to resolve such issue. The determination as
         to whether or not any Patent will be sold or licensed and, if so, which
         Party's Patent will be sold or licensed, shall be based on a good faith
         consideration of the relative impact on each Party's respective
         business interests likely to be caused by the transfer of rights in any
         such Patent. In the event that the decision is made to sell, rather
         than to license, a Patent, the selling Party shall retain a license
         under such Patent of appropriate scope, in order to permit the selling
         Party to continue its business operations; provided, however, that such
         scope shall, unless otherwise agreed to by the Parties, be equivalent
         to the rights each Party had in such Patent under this IP Agreement
         prior to the sale.

         If Avanex is a party to a lawsuit pertaining to a Corning Assigned
         Patent and does not request that Corning participate in the management
         and control of such suit, and as the result of litigation against a
         third party for the infringement of such Patent, Avanex obtains a
         recovery (through settlement, order, or judgment) against such third
         party, and a portion of such recovery pertains to acts of infringement
         occurring prior to the execution of this IP Agreement, Avanex shall
         deduct from such recovery Avanex's litigation costs, and shall remit to
         Corning a pro rata share of the remainder of the recovery, based on the
         ratio of the portion of the recovery attributable to such prior acts of
         infringement divided by the total recovery. In any such litigation,
         Corning shall, at the request of Avanex, cooperate in the manner
         outlined in Section 14.1(i).

         If Avanex requests that Corning participate in the management and
         control of the litigation against a third party for the infringement of
         any Corning Assigned Patent and Corning agrees to participate, the
         Parties shall equally share in all external expenses associated with
         the ligitation except with respect to any expenses associated with any
         claims in the suit which are ancillary to the Corning Assigned Patent.
         For such expenses, the Party associated with such ancillary claim shall
         bear all those expenses. In such litigations, Corning's consent with
         respect to all matters of management, control, settlement, consent
         judgment, or voluntary final disposition of the litigation will be
         required. Each Party must obtain the other Party's consent to grant to
         the third party alleged infringer or any of its affiliates any license
         or sublicense to the Corning Assigned Patents in suit while such
         litigation is pending. Any recovery attributable to acts of

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                                                      Corning License No. L03273

         infringement prior to the Asset Purchase Closing shall be remitted to
         Corning. If at any time either Party does not wish to incur expenses in
         the litigation with respect to seeking damages for infringement, that
         Party may cease paying expenses and the other Party may continue to
         pursue the litigation at its expense, will receive any and all recovery
         from the lititgation, and will retain sole management and control of
         the litigation. The other Party shall continue to cooperate in the
         litigation, however. Avanex or any applicable Subsidiary shall be
         obligated to maintain the Corning Assigned Patents in suit in force
         pending such litigation.

3.       LICENSING OF CORNING ASSIGNED PATENTS.

3.1      Avanex hereby grants to Corning and its Subsidiaries (but only for so
         long as each Subsidiary remains a Subsidiary), a non-exclusive,
         perpetual, worldwide, irrevocable, royalty-free license under the
         Corning Assigned Patents, with the right to sublicense (subject to
         Section 3.2 below), to make, have made, import, use, offer to sell,
         sell, and otherwise dispose of any and all products and services, and
         to practice any method, process or procedure claimed in such Corning
         Assigned Patents, for all purposes, except for the commercial
         manufacture or sale of Corning OCM Products. Such license shall also
         permit Corning and its Subsidiaries to perform research and development
         activities that may relate to the Corning OCM Products and to develop,
         produce, market and sell products other than Corning OCM Products in
         the field of optical communications. Avanex shall not hold Corning
         liable for any claims of direct, indirect or contributory infringement
         of the Corning Assigned Patents arising out of Corning's manufacture or
         sale of products outside the scope of Corning OCM Products.

3.2      (a)      Corning shall have the right to grant sublicenses of the
                  right to use under the Corning Assigned Patents to Corning's
                  or any of its Subsidiaries' customers of products manufactured
                  by or on behalf of Corning or any of its Subsidiaries and sold
                  by Corning or any of its Subsidiaries.

         (b)      Corning shall have the right to grant sublicenses under
                  Corning Assigned Patents only in connection with the grant of
                  a license by Corning to make, have made, use, sell, offer for
                  sale or import products (or products based on Corning's or any
                  of its Subsidiaries' products) resulting from meaningful
                  development activities by Corning or its Subsidiaries, or to
                  practice a method, process or procedure claimed in such
                  Corning Assigned Patents in connection with such products,
                  within the scope of the license granted in Section 3.1 above,
                  under a license agreement with a third party (including, but
                  not limited to, a joint venture formed with a third party, or
                  to establish a contract manufacturer, or to provide contingent
                  manufacturing rights to a customer), but not, for the sake of
                  clarification, in connection with a sale of a business or
                  product line by Corning, which is addressed in Section 15.10.
                  Except as provided in the next paragraph, Corning shall have
                  no right to grant sublicenses under the Corning Assigned
                  Patents as part of (i) Patent portfolio license, (ii) a Patent
                  cross-license, or (iii) any license

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                                                      Corning License No. L03273

                  that grants no other rights than those under Patents, or
                  otherwise in any manner except as specifically set forth
                  above.

         (c)      Notwithstanding the previous paragraph, Corning shall be
                  permitted to sublicense a maximum of fifteen (15) families of
                  Corning Assigned Patents, selected at Corning's sole
                  discretion, without the restrictions of subsections 3.2(b)(i)
                  through (iii).

         (d)      Corning may sublicense a Avanex Competitor under Sections
                  3.2(b) and (c) only if the Patent being sublicensed is being
                  sublicensed outside the field of optical fiber communications.

3.3      Notwithstanding the provisions of Section 3.1 and the noncompetition
         provisions set forth in the Purchase Agreement, Corning and its
         Subsidiaries shall not be precluded in any way from making, having
         made, importing, using, offering to sell, selling or otherwise
         disposing of sub-components, i.e., devices not by themselves capable of
         performing the functional attributes of Corning OCM Products but
         otherwise usable, even exclusively, with Corning OCM Products or
         capable of being combined to form Corning OCM Products, provided that
         such sub-components are not provided to third parties in a kit or other
         form where they could be combined into and sold as Corning OCM Products
         without material design and manufacturing effort by such third parties.

3.4      Neither Avanex nor any of its Subsidiaries shall be required under this
         IP Agreement to maintain any Corning Assigned Patents in force, except
         as provided in Section 2.3.

4.       LICENSING OF CORNING SOLELY LICENSED PATENTS AND CORNING NON-EXCLUSIVE
         LICENSED PATENTS.

4.1      Subject to the provisions of Section 11.1, Corning, for itself and on
         behalf of any applicable Subsidiary, hereby grants to Avanex and its
         Subsidiaries, as sole licensee (but sole only with respect to the
         Corning OCM Products), a perpetual, worldwide, irrevocable,
         royalty-free license under the Corning Solely Licensed Patents, with
         the right to sublicense (but only with respect to the Corning OCM
         Products), to make, have made, import, use, offer to sell, sell, and
         otherwise dispose of Corning OCM Products and to practice any method,
         process or procedure claimed in the Corning Solely Licensed Patents in
         order to make and have made Corning OCM Products; provided, however,
         that such sole license is subject to any rights or licenses granted to
         third parties prior to the date of signing of the Purchase Agreement,
         and subject to restrictions by operation of law with respect to any
         such Patents which are co-owned with a third party (and to the extent a
         co-owner's consent is necessary for such a license, Corning shall make
         good faith efforts, if requested, to procure such rights, but at
         Avanex's expense if any is required). With respect to [*], such license
         shall [*]. With respect to [*], such license [*].

[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

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4.2      Subject to the provisions of Section 11.1, Corning, for itself and on
         behalf of any applicable Subsidiary, hereby grants to Avanex and its
         Subsidiaries, a perpetual, worldwide, non-exclusive, irrevocable,
         royalty-free license under Corning Non-Exclusive Licensed Patents, to
         make (but not have made), import, use, offer to sell, sell, and
         otherwise dispose of Corning OCM Products and to practice any method,
         process or procedure claimed in the Corning Non-Exclusive Licensed
         Patents in order to make Corning OCM Products; provided however, that
         such license is subject to any rights or licenses granted to third
         parties prior to the date of signing of the Purchase Agreement, and
         subject to restrictions by operation of law with respect to any such
         Patents which are co-owned with a third party (and to the extent a
         co-owner's consent is necessary for such a license, Corning shall make
         good faith efforts, if requested, to procure such rights, but at
         Avanex's expense if any is required). In the event that Avanex has a
         third party make, on Avanex's behalf, a product within the scope of any
         Corning Non-Exclusive Licensed Patents, Corning agrees not to sue
         Avanex or its customers under such Corning Non-Exclusive Licensed
         Patents. However, this agreement not to sue shall not waive Corning's
         rights to bring an infringement action against such third party under
         such Corning Non-Exclusive Licensed Patents.

4.3      Notwithstanding the limitation of certain Corning OCM Products to
         applications for transmitting signals in optical fiber [*], Corning,
         for itself any applicable Subsidiary, hereby grants to Avanex and its
         Subsidiaries a perpetual, worldwide, non-exclusive, irrevocable,
         royalty-free license under the Corning Solely Licensed Patents and
         Corning Non-Exclusive Licensed Patents, to make, have made, import,
         use, offer to sell, sell and otherwise dispose of products designed as
         Corning OCM Products for use in transmission in optical fiber for [*],
         and to practice any method, process or procedure claimed in the Corning
         Solely Licensed Patents or the Corning Non-Exclusive Licensed Patents
         in order to make and have made such Corning OCM Products; provided,
         however, that such license is subject to any rights or licenses granted
         to third parties prior to the date of signing of the Purchase
         Agreement, and subject to restrictions by operation of law with respect
         to any such Patents which are co-owned with a third party (and to the
         extent a co-owner's consent is necessary for such a license, Corning
         shall make good faith efforts, if requested, to procure such rights,
         but at Avanex's expense if any is required). Such license shall extend
         to Avanex's customers regardless of whether the customer uses the
         product for optical transmission [*]. Such license shall [*].

4.4      If Avanex learns of the substantial infringement of any Corning Solely
         Licensed Patent in the field that has been solely licensed to Avanex,
         Avanex shall notify Corning in writing of this infringement, and shall
         provide Corning with reasonable evidence of the infringement. Neither
         Party will notify the infringer of the infringement without first
         obtaining the consent of the other Party which consent shall not be
         unreasonably withheld or delayed. Both Parties must use commercially
         reasonable efforts, in cooperation with

[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

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                                                      Corning License No. L03273

         each other, to resolve such infringement without litigation. Subject to
         the above, Corning hereby grants to Avanex, to the extent permitted by
         law, the exclusive right to prosecute any substantial infringement of
         the Corning Solely Licensed Patents with respect to the manufacture,
         sale or use of a product within the field of Corning OCM Products,
         including acts of infringement occurring prior to the execution of this
         IP Agreement, or defend any declaratory judgment action with respect
         thereto (for the purposes of this Section 4.4, an "ENFORCEMENT
         ACTION"), at its own expense, provided that Avanex shall consult with
         Corning and obtain Corning's approval before taking any action
         (including entering any settlement, consent judgment or other voluntary
         final disposition of any Enforcement Action) that could adversely
         affect any Corning Solely Licensed Patents. If necessary, Corning will
         join such Enforcement Action as a party. Avanex shall retain all of any
         recovery obtained in an Enforcement Action, unless such recovery
         pertains to acts of infringement occurring prior to the execution of
         this IP Agreement. In such a case, Avanex shall deduct from such
         recovery Avanex's litigation costs, and shall remit to Corning a pro
         rata share of the remainder of the recovery (through settlement, order,
         or judgment), based on the ratio of the portion of the recovery
         attributable to such prior acts of infringement divided by the total
         recovery. In any Enforcement Action, Corning shall, at the request of
         Avanex and subject to reimbursement of costs set forth below, cooperate
         in all reasonable respects; make available relevant records, papers,
         information, and the like; and, to the extent reasonably possible, have
         its employees testify when requested. To the extent that Avanex elects
         to prosecute or defend an Enforcement Action, Avanex shall pay all
         Corning's expenses including, but not limited to, attorneys fees and
         court costs for Corning's involvement as a subpoenaed third party or as
         a necessary joined party in any court, alternative dispute resolution,
         or administrative body proceedings, as well as compensation for the
         value of the time of Corning's employees as reasonably required in
         connection with the Enforcement Action.

4.5      After Corning presents evidence of infringement to Avanex sufficient to
         bring a claim for patent infringement, Corning may request, in writing,
         that Avanex initiate an Enforcement Action against the infringement or
         threatened infringement of the Corning Solely Licensed Patents within
         the field of Corning OCM Products. If, within [*] days following
         receipt of such request, Avanex has not initiated an Enforcement Action
         directed at such infringement or threatened infringement, Corning shall
         have the right to initiate an enforcement suit on its own account, and
         at its own expense, and shall retain all of any recovery obtained by
         such suit unless such recovery pertains to acts of infringement
         occurring after the execution of this IP Agreement. In such a case,
         Corning shall deduct from such recovery Corning's litigation costs, and
         shall remit to Avanex a pro rata share of the remainder of the
         recovery, based on the ratio of the portion of the recovery
         attributable to such after-occurring acts of infringement divided by
         the total recovery. Avanex must obtain Corning's consent to grant a
         license to any such infringer with regard to the asserted Patents, once
         Corning has notified the alleged infringer and until any subsequent
         litigation is over.

[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                                      -2-
<PAGE>

                                                      Corning License No. L03273

4.6      In the event that Avanex wishes to expand the foregoing licenses, the
         Parties will discuss such an expansion and the terms of such an
         expansion; provided that nothing herein will require Corning to agree.

4.7      Neither Corning nor any of its Subsidiaries shall be required under
         this IP Agreement to maintain any Corning Solely Licensed Patents in
         force.

5.       LICENSING OF CORNING LICENSED KNOW-HOW.

5.1      Subject to the provisions of Section 11.1, Corning, for itself and on
         behalf of any applicable Subsidiary, hereby grants Avanex and its
         Subsidiaries (a) as sole licensee (but sole only with respect to the
         Corning OCM Products), a perpetual, worldwide, irrevocable,
         royalty-free license, with the right to sublicense (subject to Section
         5.2 below), to use the Corning Licensed Know-How to design, develop,
         manufacture, have manufactured, assemble, have assembled, test, store,
         transport, deliver, market, sell, support and provide professional
         services with respect to Corning OCM Products and (b) a nonexclusive,
         perpetual, worldwide, irrevocable, royalty-free license, with the right
         to sublicense (subject to Section 5.2 below), to use the Corning
         Licensed Know-How for other purposes; provided, however, that such
         licenses are subject to any rights or licenses granted to third parties
         prior to the date of signing of the Purchase Agreement.

5.2      Avanex shall have the right to grant sublicenses under the Corning
         Licensed Know-How only in connection with the grant of a license by
         Avanex to make, have made, use, sell, offer for sale or import Avanex's
         or any of its Subsidiaries' products or products based on Avanex's or
         any of its Subsidiaries' products within the scope of the license
         granted in Section 5.1 above, in connection with a license agreement
         with a third party (including, but not limited to, a joint venture
         formed with a third party, to establish a contract manufacturer, and to
         provide contingent manufacturing rights to a customer). Avanex shall
         have no right, however, to grant sublicenses under the Corning Licensed
         Know-How to a third party as a bare Know-How license for a new
         application for which Avanex has not had meaningful product development
         activities, or otherwise in any manner except as specifically set forth
         above. Furthermore, Avanex shall not be permitted to sublicense Corning
         Licensed Know-How embodied in and associated with those computer
         programs or software tools listed in Exhibit 5.2.

5.3

         (a)      The following items of Corning Licensed Know-How shall be
         considered delivered upon the Asset Purchase Closing:

                  (i)  Corning Licensed Know-How embodied in tangible and
                       electronic form contained within the facilities to be
                       occupied by Avanex;

                  (ii) those items of Corning Licensed Know-How within the
                       knowledge of those employees of Corning who become
                       employees of Avanex at the Asset Purchase Closing and any
                       items constituting or containing Corning Licensed
                       Know-How, in

                                      -3-
<PAGE>

                                                      Corning License No. L03273

                       tangible or electronic form, which they bring with them.
                       In connection with the transition of such employees from
                       Corning to Avanex, and consistent with such employees'
                       continuing confidentiality obligations to Corning,
                       Corning shall direct such employees to identify and
                       accumulate such items of Corning Licensed Know-How during
                       the period prior to Asset Purchase Closing.

         (b)      Avanex may, within [*] of Asset Purchase Closing, request in
         writing the delivery of additional specific tangible or electronic
         items of Corning Licensed Know-How that have not already been delivered
         in the manner set forth in Section 5.2(a) and which have been used by
         Corning's employees in connection with Corning OCM Products within [*]
         prior to the Asset Purchase Closing. Corning will copy and deliver such
         requested items, and deliver a copy in tangible or electronic form only
         if i) the requested item already exists within Corning's possession in
         tangible or electronic form; ii) no services other than clerical
         copying or electronic download services are necessary to produce the
         deliverable form of the requested item; iii) the requested item is not
         subject to third party copyright which would restrict Corning's right
         to provide a copy to Avanex for Avanex's use while retaining a copy
         with Corning for Corning's use; and iv) Avanex shall reimburse Corning
         for out-of-pocket copying, electronic download, and delivery expenses.

         (c) Corning shall have no further obligation under this IP Agreement to
         deliver any specific items of Corning Licensed Know-How to Avanex.
         Furthermore, neither Corning nor its Subsidiaries shall be obligated
         under any provision of this IP Agreement to provide the services of any
         employees or to expend any resources for the purpose of transferring
         any items of Corning Licensed Know-How to Avanex, including, but not
         limited to (a) reducing to tangible form any Corning Licensed Know-How
         not previously available in tangible form, (b) providing any oral
         transfer of Corning Licensed Know-How or (c) providing any technical
         support, consultation, instruction or training of Avanex's personnel in
         how to understand, use or implement such Corning Licensed Know-How.

5.4      Each Party agrees, for itself and on behalf of its Subsidiaries, to
         maintain any Corning Licensed Know-How in confidence in accordance with
         the provisions of the confidentiality agreement in Exhibit 5.4,
         attached hereto.

[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                                      -4-
<PAGE>

                                                      Corning License No. L03273

6.   ASSIGNMENT OF CORNING ASSIGNED TRADEMARKS

6.1      At the Asset Purchase Closing, subject to the terms and conditions set
         forth in this IP Agreement, Corning or its applicable Subsidiary shall
         sell, convey, transfer and assign all of Corning's or its Subsidiary's
         right, title and interest in and to the Corning Assigned Trademarks,
         together with all goodwill of the business associated with or
         symbolized by the Corning Assigned Trademarks, to Avanex or one or more
         of its designated Subsidiaries, and Avanex or one or more of its
         designated Subsidiaries shall purchase from Corning such right, title
         and interest.

7.   LICENSING OF CORNING TRADEMARKS

7.1      In order for the Avanex to be able to market, promote, sell or
         distribute any finished goods inventory of the Corning OCM Products
         acquired under the Purchase Agreement, Corning agrees to grant and
         hereby grants, effective as of the Asset Purchase Closing and extending
         not longer than the respective periods of time specified in Sections
         7.6 and 7.7, a non-exclusive, non-transferable, non-sublicensable,
         royalty-free license to use certain trademarks of the Corning or its
         Subsidiaries, solely on, or in connection with, the Corning OCM
         Products. Such trademarks include (a) all trademarks containing the
         name "CORNING" or any variation of the name "CORNING" and (b) the
         "CORNING FLAME" logo (collectively, the "Corning Trademarks").

7.2      The license granted in Section 7.1 shall be limited to the use of the
         Corning Trademarks in the manner in which, and to the extent to which,
         they were in use by Corning as of the Asset Purchase Closing, and shall
         not permit Avanex to expand the use thereof.

7.3      Subject to Section 11.2, Corning agrees to grant and hereby grants,
         effective as of the Asset Purchase Closing, an exclusive,
         non-transferable, non-sublicensable, royalty-free license to use
         Corning's trademark "DCM" solely on, or in connection with, Dispersion
         Compensation Modules.

7.4      Avanex agrees, on behalf of itself and its Subsidiaries (a) to conform
         with all applicable quality standards and usage guidelines established
         by Corning and/or its respective Subsidiaries and provided by Corning
         to Avanex regarding the Corning Trademarks and the DCM trademark and
         the use thereof in connection with the Corning OCM Products or
         Dispersion Compensation Modules, which standards and guidelines shall
         be consistent with those followed by Corning prior to the Asset
         Purchase Closing (b) not to engage in any activities that would
         adversely affect the goodwill associated with the Corning Trademarks or
         the DCM trademark and (c) to permit Corning to monitor and control the
         nature and quality of any products or services provided by Avanex or
         its Subsidiaries under or in connection with the Corning Trademarks or
         the DCM trademark. The form and manner in which the DCM Trademark shall
         be used upon or in connection with Dispersion Compensation Modules, or
         labels, containers, or advertisements therefor shall be consistent with
         the use made by Corning prior to the Asset Purchase Closing.

                                      -5-
<PAGE>

                                                      Corning License No. L03273

7.5      Except to the extent, if at all, that Corning is obligated to indemnify
         Avanex under the Purchase Agreement, Avanex agrees to defend, indemnify
         and hold harmless Corning and its applicable Subsidiaries and their
         respective officers, directors, employees and agents from any and all
         liability and costs arising from third party claims, demands, causes of
         action and judgments, including attorneys' fees and court costs,
         resulting from Avanex's or its Subsidiary's (a) production,
         manufacture, distribution or shipment of Corning OCM Products bearing
         the Corning Trademarks and Dispersion Compensation Modules bearing the
         DCM trademark, (b) use of the Corning Trademarks or the DCM trademark
         for the marketing, promotion, sale or distribution of products other
         than the Corning OCM Products (or Dispersion Compensation Modules, in
         the case of the DCM trademark), or (c) use of the Corning Trademarks or
         the DCM trademark not otherwise in accordance with the license and
         rights granted herein.

7.6      Notwithstanding the license granted in Section 7.1, Avanex shall, as
         soon as is practicable but not more than twelve (12) months after the
         Asset Purchase Closing, modify all Corning OCM Products and associated
         packaging, labeling, labels, brochures and sales aids which bear or
         contain any Corning Trademarks, by use of stickers or other appropriate
         means, which are reasonably calculated to show customers and
         prospective customers of the Corning OCM Products that the ownership
         thereof and responsibility therefor has transferred to Avanex.

7.7      Notwithstanding the license granted in Section 7.1, Avanex shall, as
         soon as is practicable but not more than three (3) months after the
         Asset Purchase Closing, terminate the use of any existing inventories
         of (a) any letterhead stationery, envelopes, business cards, checks,
         invoices, purchase orders, and similar printed materials, and (b)
         signage in or on buildings or vehicles which bear or contain any
         Corning Trademarks.

7.8      Notwithstanding Section 15.10, the licenses of Sections 7.1 and 7.3
         shall not be assignable by Avanex without the express written consent
         of Corning.

8.       ASSIGNMENT OF CORNING ASSIGNED COPYRIGHTS

8.1      At the Asset Purchase Closing, subject to the terms and conditions set
         forth in this IP Agreement, Corning or its applicable Subsidiary (but
         not including Corning Cable Systems or Technical Materials) shall sell,
         convey, transfer and assign all of Corning's, or such Subsidiary's,
         right, title and interest in and to the Corning Assigned Copyrights to
         Avanex or one or more of its designated Subsidiaries, and Avanex or one
         or more of its designated Subsidiaries shall purchase from Corning such
         right, title and interest. Avanex shall ensure that Corning's name
         (including the name in Corning's copyright notice) and trademarks shall
         be deleted from any copies of materials within the scope of the Corning
         Assigned Copyrights provided to third parties, except as may be
         otherwise explicitly permitted under this IP Agreement.

8.2      Avanex hereby grants to Corning, including its Subsidiaries, a
         non-exclusive, perpetual, worldwide, irrevocable, royalty-free license
         under the Corning Assigned Copyrights to copy,

                                      -6-
<PAGE>

                                                      Corning License No. L03273

         modify, make derivative works of, and distribute any printed materials
         in Corning's or its Subsidiaries' possession after the Asset Purchase
         Closing and covered by any Corning Assigned Copyrights, solely for
         purposes other than related to the Corning OCM Products.

9.       LICENSING OF CORNING LICENSED COPYRIGHTS.

9.1      Corning, for itself and on behalf of any applicable Subsidiary, hereby
         grants Avanex and its Subsidiaries (a) as sole licensee (but sole only
         with respect to Corning OCM Products), a perpetual, worldwide,
         irrevocable, royalty-free license (but subject to any royalties owed to
         third parties, which shall be the responsibility of Avanex), under the
         Corning Licensed Copyrights, with the right to sublicense (subject to
         Section 9.2 below), to copy, modify, make derivative works of, and
         distribute any copyrightable materials covered by a Corning Licensed
         Copyright and derivative works thereof made by or for Avanex, and (b) a
         nonexclusive, worldwide, royalty-free, irrevocable, perpetual license,
         under the Corning Licensed Copyrights, with the right to sublicense
         (subject to Section 9.2 below), to copy, modify, make derivative works
         of, and distribute any copyrightable materials covered by a Corning
         Licensed Copyright and derivative works thereof made by or for Avanex,
         for purposes other than those related to the Corning OCM Products. Such
         licenses shall be limited to Corning Licensed Copyrights which
         rightfully come into the possession of Avanex as of the Asset Purchase
         Closing pursuant to the Purchase Agreement.

9.2      Avanex shall have the right to grant sublicenses under the Corning
         Licensed Copyrights only in connection with the grant of a license by
         Avanex to make, have made, use, sell, offer for sale or import Avanex's
         or any of its Subsidiaries' products or products based on those
         products within the scope of the license granted in Section 9.1 above,
         in connection with a license agreement with a third party (including,
         but not limited to, a joint venture formed with a third party, to
         establish a contract manufacturer, and to provide contingent
         manufacturing rights to a customer). Avanex shall have no right,
         however, to grant sublicenses under the Corning Licensed Copyrights to
         a third party as a bare Copyright license for a new application for
         which Avanex has not had meaningful product development activities or
         otherwise in any manner except as specifically set forth above.
         Furthermore, Avanex shall not be permitted to sublicense Corning
         Licensed Copyrights embodied in or associated with those computer
         programs or software tools listed in Exhibit 5.2.

10.      RIGHTS REGARDING CORNING TRANSFERRED THIRD PARTY IP CONTRACTS.

10.1     At the Asset Purchase Closing, subject to the terms and conditions set
         forth in this IP Agreement, Corning or its applicable Subsidiary shall
         sell, convey, transfer and assign all of Corning's or its Subsidary's
         right, title and interest in and to the Corning Transferred Third Party
         IP Contracts, along with all of Corning's (or its Subsidiary's, as the
         case may be) attendant rights and obligations thereunder, to Avanex or
         one or more of its designated Subsidiaries, and Avanex or one or more
         of its designated Subsidiaries shall purchase from Corning such right,
         title and interest. Avanex, for itself and on behalf of any applicable
         Subsidiary, agrees to perform all obligations under any Corning
         Transferred Third Party Contract so assigned or transferred, and to
         execute all documents necessary to effect such

                                      -7-
<PAGE>

                                                      Corning License No. L03273

         assignment or transfer. Any third party consents received by Corning
         from the party or parties to any Corning Transferred Third Party IP
         Contracts shall be delivered to Avanex.

10.2     Notwithstanding the various assignments of Corning Transferred Third
         Party IP Contracts to Avanex hereunder, none of the rights thereby
         acquired by Avanex shall in any way preclude Corning or its
         Subsidiaries from designing, producing, using or selling optical fiber.
         To the extent necessary to effectuate this provision, Avanex hereby
         sublicenses and covenants not to sue Corning, its Subsidiaries or any
         of their respective customers under any Corning Third Party IP acquired
         by Avanex pursuant to such assigned Corning Transferred Third Party IP
         Contracts that would otherwise prevent Corning or its Subsidiaries from
         making, having made, importing, using, offering to sell, selling, or
         otherwise disposing of optical fiber.

10.3     Notwithstanding the various assignments of Corning Transferred Third
         Party IP Contracts to Avanex hereunder, such assignments are subject to
         any rights or licenses to the applicable Corning Third Party IP granted
         to third parties prior to the date of signing of the Purchase
         Agreement.

10.4     [*]

11.      RIGHTS REGARDING DISPERSION COMPENSATION MODULES

11.1     With respect to Dispersion Compensation Modules, the licenses of
         Sections 4.1, 4.2 and 5.1 are limited to (a) the assembly of Dispersion
         Compensation Modules and (b) the packaging of optical fiber(s) therein,
         but shall not apply in any way to the making, using or selling of
         dispersion-compensating optical fiber alone. Furthermore, Corning
         agrees not to license third parties with respect to Dispersion
         Compensation Modules under the Corning Solely Licensed Patents (per
         Article 4) or the Corning Licensed Know-How (per Article 5), provided,
         however, that such obligation not to license third parties shall
         terminate in the event that Avanex breaches the quality-related and
         customer satisfaction-related milestones specified in Exhibit 11.1 (i)-
         (iii) attached hereto and fails to cure such breach within ninety (90)
         days of receipt from Corning of notice of such breach, breaches its
         purchase obligations under the Fiber Supply Agreement and fails to cure
         such breach in the manner provided therein, or the Fiber Supply
         Agreement expires or is terminated for any reason other than Corning's
         breach. In the event that the Fiber Supply Agreement is terminated due
         to Corning's breach, Corning's obligation not to license third parties
         shall terminate four years after the Asset Purchase Closing.

[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                                      -8-
<PAGE>

                                                      Corning License No. L03273

11.2     The license to the DCM trademark under Section 7.3 shall terminate if
         Avanex breaches (a) the quality-related and customer
         satisfaction-related milestones (i)-(iii) specified in Exhibit 11.1,
         (b) its purchase obligations under the Fiber Supply Agreement, or (c)
         the quality obligations set forth in Section 7.4 and fails to cure the
         breaches of subsections (a) or (c) within ninety (90) days of receipt
         from Corning of notice of such breach or fails to cure the breach of
         subsection (b) in the manner provided in the Fiber Supply Agreement.
         Avanex shall immediately terminate its use of the DCM trademark upon
         termination of the license for any reason. In the event that Avanex
         fails to satisfy milestone (iv) in Exhibit 11.1, or the Fiber Supply
         Agreement expires or is terminated for reasons other than Avanex's
         breach, then Avanex's license shall become a non-exclusive license in
         the DCM trademark, still subject to the quality obligations set forth
         above.

12.      LIMITATION ON LICENSES.

12.1     Neither Party grants any other licenses, express or implied, to any
         Intellectual Property, except as explicitly stated in this IP
         Agreement.

13.      NO TERMINATION.

13.1     Each Party acknowledges and agrees that the licenses granted under this
         IP Agreement, except where specified otherwise, are perpetual and
         irrevocable, and that its remedy for breach by the other Party of the
         licenses granted to it hereunder or of any other provision hereof,
         shall be to bring a claim to recover damages and to seek appropriate
         equitable relief, other than termination of the licenses granted by it
         in this IP Agreement.

14.      TRANSITION SERVICES.

14.1     (a) As soon as reasonably practicable after the Asset Purchase Closing,
         Corning and Avanex shall establish a schedule and a process for the
         transfer of files for the Corning Assigned Patents and Corning Assigned
         Trademarks to Avanex. In accordance with the schedule, Corning shall
         transfer to Avanex patent prosecution files, docketing and annuity
         payment schedules in Corning's possession for the Corning Assigned
         Patents and Corning Assigned Trademarks.

         (b) Corning shall provide the services listed below (hereinafter "the
         Services") to Avanex after Asset Purchase Closing as may be reasonably
         required to effectively transition the management of the prosecution
         and maintenance of the Corning Assigned Patents and Corning Assigned
         Trademarks to Avanex. The Services are:

                           (i)      docketing official actions from patent and
                                    trademark offices and informing Avanex of
                                    such actions;

                           (ii)     preparing responses to official actions
                                    (either by in-house attorneys or through
                                    outside counsel under the direction of
                                    in-house attorneys) in connection with
                                    patent and trademark applications;

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<PAGE>

                                                      Corning License No. L03273

                           (iii)    filing responses and formal papers in patent
                                    and trademark offices (either by in-house
                                    attorneys or through outside counsel under
                                    the direction of in-house attorneys) in
                                    connection with patent and trademark
                                    applications;

                           (iv)     paying maintenance fees on Corning Assigned
                                    Patents and Corning Assigned Trademarks per
                                    direction from Avanex;

                           (v)      maintaining files; and

                           (vi)     physically transferring files to Avanex.

         (c)      In no event will Corning be obligated to provide the Services
         to Avanex for longer than three (3) months from the Asset Purchase
         Closing. In no event will Corning be obligated to expend more than
         eighty (80) hours per month of in-house attorney time for provision of
         the Services. In the event that the Services require more than eighty
         (80) hours per month of in-house attorney time, Corning will apprise
         Avanex of this fact and if necessary ensure that such Services are
         provided through outside counsel, at Avanex's expense. Promptly upon
         the request of Avanex after the Asset Purchase Closing, Corning shall
         provide Avanex with an estimate of Avanex's payments for the Services,
         which estimate is not binding on Corning and is for budgeting purposes
         only.

         (d)      Corning shall use the same standard of care in provision of
         the Services that it uses in connection with patents and applications
         owned by Corning.

         (e)      Avanex shall promptly reimburse Corning for all expenses and
         costs (including outside counsel fees and expenses) incurred to provide
         the Services and assistance. Avanex also shall pay Corning for the
         value of the time expended by Corning's in-house attorneys and patent
         agents in providing the Services and assistance. The amount to be paid
         for in-house attorneys' time shall be one hundred ninety dollars ($190)
         per hour.

         (f)      In no event will Corning be liable for any incidental or
         consequential damages in connection with the Services or assistance
         provided, or for any damages other than damages resulting from
         intentional breach, gross negligence or willful misconduct.

         (g)      Avanex agrees to waive any attorney conflict of interest that
         may result from Corning's attorneys' provision of the Services or
         assistance in connection with the performance of Corning's obligations
         hereunder.

         (h)      Corning shall make available to Avanex inventors employed by
         Corning for interviews, to assist in good faith in further prosecution
         of the Corning Assigned Patents, including the signing of documents
         related thereto. Avanex shall reimburse Corning for the time expended
         by such inventors.

         (i)      Corning agrees to cooperate in good faith in responding to and
         assisting with reasonable discovery requests from Avanex should Corning
         be a party in a litigation and to reasonable third party subpoenas from
         Avanex concerning a litigation asserting Corning Assigned Patents or
         Corning Solely Licensed Patents. Such cooperation shall include

                                      -10-
<PAGE>

                                           Corning License No. L03273

         assistance from all Corning employees having information pertinent to
         the Patents at issue for the purposes of fact discovery by providing
         documents, and deposition and trial testimony. Corning may, but shall
         not be obligated to, provide expert witness assistance. Avanex agrees
         to compensate Corning for all such assistance.

14.2     Notwithstanding the above, the Parties acknowledge and agree that,
         prior to the signing of the Purchase Agreement, Corning and its
         Subsidiaries had continued to administer the Corning Assigned Patents
         in the ordinary course of business, and that, due to the size of the
         portfolio, many actions with respect to Corning Assigned Patents have
         been put into motion (including actions that may result in the
         termination of one or more of the Corning Assigned Patents) and that it
         is both imprudent and impractical to try to alter such actions. Corning
         agrees not to set into motion any new action with respect to any of the
         Corning Assigned Patents after the signing date of the Purchase
         Agreement which would affirmatively abandon any cases without
         consultation with the Avanex. At the Asset Purchase Closing, Corning
         shall update the list of Corning Assigned Patents in Exhibit 1.4 to
         account for any actions taken in this regard.

14.3     Each Party agrees, without demanding any further consideration, to
         execute (and to cause its Subsidiaries to execute) all documents
         reasonably requested by the other Party to effect recordation of (a)
         the assignment of the Corning Assigned Patents and Corning Assigned
         Trademarks and (b) the licensing relationships between the Parties
         created by this IP Agreement.

14.4     On a regular basis during the period from the signing of the Purchase
         Agreement until one hundred eighty (180) days after the Asset Purchase
         Closing, Corning shall provide Avanex with any new invention
         disclosures that are primarily related to Corning OCM Products and
         which are submitted during that period. Promptly after the completion
         of one hundred eighty (180) days after the Asset Purchase Closing,
         Corning shall provide Avanex with a list of Corning Assigned Patents
         which have been newly filed during the period from the signing of the
         Purchase Agreement until one hundred eighty (180) days after the Asset
         Purchase Closing. Within a reasonable time after the completion of such
         one hundred eighty (180) day period, Corning also shall provide Avanex
         with patent prosecution files, docketing and annuity payment schedules
         in Corning's possession for such Corning Assigned Patents. Corning will
         monitor such files, dockets, and annuity payment schedules until such
         files are transferred to Avanex.

15.      MISCELLANEOUS.

15.1     No failure by a Party to exercise, or to delay to exercise, any right,
         power, or remedy under this IP Agreement shall operate as a waiver
         thereof, nor shall any single or partial exercise of such right, power,
         or remedy by such Party preclude any other or further exercise thereof
         or of any other right.

15.2     Nothing herein shall be deemed to create an agency, joint venture or
         partnership relation between the Parties.

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                                           Corning License No. L03273

15.3     This IP Agreement and the Purchase Agreement constitutes the entire
         agreement and understanding of the Parties with regard to the transfer
         of intellectual property rights and of licensing rights between the
         Parties as contemplated under the Purchase Agreement, and supersedes
         all prior and contemporaneous discussions, negotiations, understandings
         and agreements, whether oral or written, between the Parties concerning
         such subject matter. Each Party disclaims all representations and
         warranties except those expressly set forth herein or in the Purchase
         Agreement. No party shall be bound by any definition, condition,
         warranty, right, duty or covenant other than as expressly stated
         herein. Each Party expressly waives any implied right or obligation
         regarding the subject matter hereof. This IP Agreement may be amended
         only by a written document signed by authorized representatives of the
         Parties.

15.4     This IP Agreement shall be interpreted and construed, and the legal
         relations created herein shall be determined, in accordance with the
         laws of the State of New York (excluding conflict of laws which would
         require the application of any other law) and the United States.

15.5     Each Party shall execute, acknowledge and deliver all such further
         instruments and do all such further acts as may be reasonably necessary
         or desirable to carry out the intent and purposes of this Agreement and
         the consummation of the transactions contemplated hereby.

15.6     The headings contained in this IP Agreement are for reference purposes
         only and shall not affect in any way the meaning or interpretation of
         this IP Agreement.

15.7     Should any part or provision of this IP Agreement or the application
         thereof be declared by a court of competent jurisdiction to be illegal,
         void or unenforceable, the remaining parts or provisions shall continue
         in full force and effect. If a part or provision of this IP Agreement
         is held illegal, void or unenforceable, the remaining provisions of
         this Agreement shall be construed as if such illegal, void or
         unenforceable provision were omitted, and the Parties shall negotiate
         in good faith an amendment to such part or provision in a manner
         consistent with the intention of the parties with respect to this IP
         Agreement.

15.8     No party shall be responsible or liable to another Party for
         nonperformance or delay in performance of any terms or conditions of
         this IP Agreement due to acts or occurrences beyond the reasonable
         control of the nonperforming or delayed party, including but not
         limited to, acts of God, acts of government, wars, riots, strikes or
         other labor disputes, shortages of labor or materials, fires and
         floods, provided the nonperforming or delayed Party provides to the
         other Party written notice of the existence and the reason for such
         nonperformance or delay.

15.9     Any and all notices or other communications required or permitted by
         this Agreement or by law to be served on or given to a Party by another
         Party shall be in writing and delivered or sent to:

                                    CORNING:
                                    Corning Incorporated
                                    One Riverfront Plaza

                                      -12-
<PAGE>

                                           Corning License No. L03273

                                    Corning, NY 14831
                                    Attn: Company Secretary

                                    cc:  Licensing Coordinator
                                         Corning Incorporated
                                         Intellectual Property Department
                                         SP-TI-3-1
                                         Corning, NY 14831

                                    AVANEX:
                                    Avanex Corporation
                                    40919 Encyclopedia Circle
                                    Fremont, CA 94538
                                    Attn:   CEO

         A Party may change its address for purposes of this Agreement by
         written notice to the other Party.

         All notices and other communications hereunder shall be in writing and
         shall be deemed duly given (i) on the date of delivery if delivered
         personally, (ii) on the date of confirmation of receipt (or, the first
         business day following such receipt if the date is not a business day)
         of transmission by telecopy or telefacsimile or (iii) on the date of
         confirmation of receipt (or, the first business day following such
         receipt if the date is not a business day) if delivered by a nationally
         recognized courier service.

15.10    (a) This IP Agreement shall be binding upon and inure to the benefit of
         the Parties and their respective successors and permitted assigns.
         Nothing in this IP Agreement shall be deemed to have created any third
         party beneficiary rights in any person.

         (b) Neither Party shall be permitted to assign or transfer this IP
         Agreement in its entirety (by operation of law or otherwise) without
         the prior written consent of the other Party, and any such attempted
         assignment or transfer shall be void; provided, however that either
         Party may assign or transfer this Agreement in its entirety (except as
         excluded under Section 7.8), in connection with the sale of all or
         substantially all of the assets to which this IP Agreement relates, and
         any and all of its associated rights and obligations, provided the
         assigning or transferring Party remains primarily liable for all
         obligations under this IP Agreement, and the assignee or transferee
         agrees in writing to comply with all of such obligations.

         (c) In addition, in the event that Corning assigns or transfers a
         technology for a specific field of use that includes at least one
         product under development or a commercially released product to a third
         party (a "TRANSFEREE"), Corning shall be permitted to assign or
         transfer all of the license rights granted to Corning by Avanex under
         this IP Agreement solely in such field of use (a "TRANSFERRED FIELD"),
         provided that:

                                      -13-
<PAGE>

                                           Corning License No. L03273

                  (i)      Corning provides Avanex with prompt notice of such
                           assignment or transfer and copies of the portions of
                           the agreement relevant to such assignment or
                           transfer;

                  (ii)     Transferee agrees in writing to comply with all other
                           terms and conditions of this Agreement as it applies
                           to the assigned or transferred license rights and the
                           Transferred Field;

                  (iii)    all of the license rights granted to Corning by
                           Avanex under this IP Agreement shall terminate with
                           respect to the Transferred Field; and

                  (iv)     Transferee shall not be a Avanex Competitor.

         (d)      Notwithstanding Section 15.10(b), Avanex may assign or
                  transfer the Corning Licensed Know-How and Corning Licensed
                  Copyrights listed in Exhibit 5.2 in connection with the sale
                  of all or substantially all of the assets to which this IP
                  Agreement relates, but such Corning Licensed Know-How and
                  Corning Licensed Copyrights may not be used in connection with
                  any businesses other than those that existed at the time of
                  the transfer or assignment, i.e., the transferee or assignee
                  may not use for other applications.

15.11    Avanex acknowledges that any present or former employees of Corning (or
         its Subsidiaries) who become employed by Avanex, either directly or
         indirectly as a result of the transactions contemplated under the
         Purchase Agreement, will be bound by obligations of confidentiality to
         Corning (and/or its respective Subsidiary) with respect to proprietary
         information related to matters other than the Corning OCM Products and
         the Corning Licensed Know-How. Avanex agrees not to (a) induce such
         employees to breach such obligations, or (b) use, copy or disclose any
         information that may be disclosed by such employees and which Avanex
         knows, or has reason to know, constitutes Corning's proprietary
         information.

15.12    Each Party shall comply with (a) applicable export laws and regulations
         of any agency of the U.S. Government; and (b) any other current,
         applicable laws, regulations and other legal requirements in its
         exercise of its rights under this IP Agreement.

15.13    Each Party acknowledges that its breach of its obligations hereunder
         may cause irreparable damage to the other Party for which such Party
         will not have an adequate remedy at law. Therefore, each Party agrees
         that the other Party shall be entitled to seek equitable relief with
         respect to the first Party's obligations hereunder.

15.14    This IP Agreement may be executed by each Party in counterparts, each
         of which shall be deemed an original, but all such counterparts shall
         constitute only one and the same instrument.

                                      -14-
<PAGE>

                                           Corning License No. L03273

IN WITNESS WHEREOF, the Parties have executed this Agreement in duplicate on the
signature page hereof.

CORNING INCORPORATED                AVANEX CORPORATION

By: /s/ MARK W. LAUROESCH           By: /s/ ANTHONY A. FLORENCE
    --------------------------          ----------------------------------------

Name: Mark W. Lauroesch             Name: Anthony A. Florence

Title: Assistant Secretary          Title: Sr. Vice President, Corporate Affairs

Date: July 31, 2003                 Date: July 31, 2003

                                      -15-
<PAGE>

                                           Corning License No. L03273

                                                      Corning License No. L03273

                                LIST OF EXHIBITS

1.4      Corning Assigned Patents
1.5      Corning Assigned Trademarks
1.7      Corning Commercialized OCM Products
1.10     Corning Non-Exclusive Licensed Patents
1.11a    Corning Excluded Patents
1.11b    Corning Cable Systems Patents for Corning Solely Licensed Patents
1.12     Corning OCM Products
1.14     Corning Transferred Third Party IP Contracts
1.22     Avanex Competitors
5.2      Corning Software and Software Tools Subject to Additional Limitations
5.4      Non-Disclosure Agreement
11.1     DCM Trademark Quality Obligation Milestones

                                      -16-
<PAGE>

                                   EXHIBIT 1.4
                            CORNING ASSIGNED PATENTS

[Exhibit 1.4 has been omitted and filed separately pursuant to a request for
confidential treatment filed with the Commission.]

Coming Incorporated Confidential                                          Page 1
<PAGE>

                                   EXHIBIT 1.5

                           CORNING ASSIGNED TRADEMARKS

Registered/Pending Applications

<TABLE>
<CAPTION>
TRADEMARK                   STATUS                      COUNTRY                        OWNER
----------------------------------------------------------------------------------------------------
<S>                       <C>                     <C>                           <C>
FGM                       Registered              United States                 CORNING INCORPORATED
FIBERGAIN                 Registered              China P.R.                    CORNING INCORPORATED
FIBERGAIN                 Registered              Brazil                        CORNING INCORPORATED
FIBERGAIN                 Registered              Mexico                        CORNING INCORPORATED
FIBERGAIN                 Registered              Japan                         CORNING INCORPORATED
FIBERGAIN                 Registered              United States                 CORNING INCORPORATED
FIBERGAIN                 Registered              Community Trademark           CORNING INCORPORATED
PUREGAIN                  Registered-             United States                 CORNING INCORPORATED
PUREPATH                  Registered              Singapore                     CORNING INCORPORATED
PUREPATH                  Application Filed       United States                 CORNING INCORPORATED
PUREPATH                  Registered              South Korea                   CORNING INCORPORATED
PUREPATH                  Registered              Japan                         CORNING INCORPORATED
PUREPATH                  Registered              Switzerland                   CORNING INCORPORATED
PUREPATH                  Registered              Taiwan                        CORNING INCORPORATED
PUREPATH                  Registered              Israel                        CORNING INCORPORATED
PUREPATH                  Registered              Community Trademark           CORNING INCORPORATED
PUREPATH                  Application Filed       South Africa                  CORNING INCORPORATED
PUREPATH                  Registered              China P.R.                    CORNING INCORPORATED
</TABLE>

COMMON LAW

LaserLite
OTI
OTI logo
Optilock

<PAGE>

                                   EXHIBIT 1.7

                       CORNING COMMERCIALIZED OCM PRODUCTS

<TABLE>
<CAPTION>
          AMPLIFIERS:                                                                          VARIABLE/NON              CIRCUIT
          DESCRIPTION:             ITEM GROUP    CUSTOMER       C/L BAND   LONG HAUL/METRO       VARIABLE      CONTROLS   PACK
--------------------------------------------------------------------------------------------------------------------------------
<S>                                <C>           <C>            <C>        <C>                 <C>             <C>       <C>
FGM-S-020                              FGM          [*]            C          Long Haul        Non-Variable       N         N
FGM-P-027                              FGM          [*]            C          Long Haul        Non-Variable       N         N
FGM-S-032                              FGM          [*]            C          SONET/SDH        Non-Variable       N         N
FGM-S-037                              FGM          [*]            G          Long Haul        Non-Variable       N         N
FGM-P-038                              FGM          [*]            C          Long Haul        Non-Variable       N         N
FGM-D-051                              FGM          [*]            C          Long Haul        Non-Variable       N         N
FGM-D-052                              FGM          [*]            C          Long Haul        Non-Variable       N         N
FGM-D-053                              FGM          [*]            C          Long Haul        Non-Variable       N         N
FGM-D-054 Mor+ Pair                    FGM          [*]            C          Long Haul        Non-Variable       N         N
FGM-S-060                              FGM          [*]            C          CAN              Non-Variable       N         N
FGM-S-063                              FGM          [*]            C          CAN              Non-Variable       N         N
FGM-D-080                              FGM          [*]            C          Long Haul        Non-Variable       N         N
FGM-P-100                              FGM          [*]            C          Long Haul        Non-Variable       N         N
FGM-P-110                              FGM          [*]            C          Long Haul        Non-Variable       N         N
FGM-P-120                              FGM          [*]            C          Long Haul        Non-Variable       N         N
[*] Wavestar -16 Channel C             FGM          [*]            C          Long Haul        Variable           N         N
FGM-H-132                              FGM          [*]            C          Long Haul        Variable           N         N
[*] Wavestar-800G SSMF Line            FGM          [*]            C          Long Haul        Variable           N         N
[*] Wavestar-800G NZDSF Lin            FGM          [*]            C          Long Haul        Variable           N         N
[*] Wavestar 1.6T H-135 (C-            FGM          [*]            C          Long Haul        Variable           N         N
FGM-P-140-01                           FGM                                                                                  N
FGM, 18.5dB Gain, (Blue), Pure         FGM          [*]            C          Metro            Non-Variable       Y         N
FGM, 18.5dB Gain, (Red), PureG         FGM          [*]            C          Metro            Non-Variable       Y         N
PureGain 1500 15dBm output pow         FGM                         C          Metro            Non-Variable       Y         N
PureGain 1500 15dBm output pow         FGM                         C          Metro            Non-Variable       Y         N
Mosaic C14 Dual Amp                    FGM          [*]            C          Long Haul        Non-Variable       N         N
MOSAIC C18 Booster Amp                 FGM          [*]            C          Long Haul        Variable           N         N
MOSAIC C21 Booster Amp                 FGM          [*]            C          Long Haul        Variable           N         N
Mosaic L14, L-Band Dual Preamp         FGM          [*]            L          Long Haul        Non-Variable       N         N
Mosaic L18, L-Band Booster (FG         FGM          [*]            L          Long Haul        Variable           N         N
Mosaic 1.21, L-band Booster Plu        FGM          [*]            L          Long Haul        Variable           N         N
Eqnx xL Pre-Beta Line Pre-amp          FGM          [*]            L          Long Haul        Variable           Y         N
Eqnx Pre-Beta xL Line Booster          FGM          [*]            L          Long Haul        Variable           Y         N
Eqnx Amux 4:1 Band 2                   FGM          [*]            L          Long Haul        Non-Variable       Y         N
Egnx xl DeMux 4 Ch Band 1              FGM          [*]            L          Long Haul        Non-Variable       Y         N
Eqnx DeMux 4x1 Ch Band 1               FGM          [*]            L          Long Haul        Non-Variable       Y         N
Eqrw DeMux 4 Ch Band 2                 FGM          [*]            L          Long Haul        Non-Variable       Y         N
Eqnx DeMux 4x1 Ch Band 2               FGM          [*]            L          Long Haul        Non-Variable       Y         N
Raman Amplifier                        FGM                                                                                  N
20 dBm C-Band Booster Amp              FGM          [*]            C          Long Haul        Variable           Y         Y
Qtera 251 w/FBG                        FGM          [*]            C          Long Haul        Variable           Y         Y
PureGain 1500, 18.5dB Gain (Re         FGM          [*]            C          Metro            Non-Variable       Y         N
</TABLE>

[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

<PAGE>
                                                      Corning License No. L03273

<TABLE>
<S>                                    <C>          <C>            <C>        <C>              <C>               <C>       <C>
PureGain 1000C +15dBm                  FGM                                                                                 N
PureGain 2000 EDFA Module              FGM                                                                                 N
PureGain 2200 EDFA Module              FGM                         C          Long Haul        Variable          N         N
PureGain 2300 EDFA Module              FGM                                                                       N
PureGain 2400C EDFA Module             FGM                         C          Metro            Non-Variable      Y N
PureGain 1500 15dBm, 23dB Gain         FGM                         C          Metro            Non-Variable      Y N
PureGain 1500 21dBm, 23dB Gain         FGM                         C          Metro            Non-Variable      Y N
PureGain 1500 21dBm, 23dB Gain         FGM          [*]            C          Metro            Non-Variable      Y N
PG 1500, 14dBm output power, 2         FGM          [*]            C          Metro            Non-Variable      Y N
[*] Shelf Amp                          FGM          [*]            C          Long Haul        Non-Variable      N N
[*] Dual Booster Shelf Amp             FGM          [*]            C          Long Haul        Non-Variable      N N
[*] GFA 12.5G Line-amp                 FGM          [*]            C          Long Haul        Variable          N N
[*] GFA 111 0G Line-amp                FGM          [*]            C          Long Haul        Variable          N N
PureGain 2500C EDFA REV 3 Pump         FGM                         C          Metro            Variable          N N
PURE GAIN 2500 C EDFA MODULE           FGM          [*]            C          Metro            Variable          N N
PUREGAIN 2500C EDFA MODULE             FGM          [*]            C          Metro            Variable          N N
[*] Metro EDFA +17 dBm, VGA            FGM          [*]            C          Metro            Variable          N N
[*] Metro High Power (HIP)             FGM          [*]            C          Metro            Non-Variable      Y N
[*] MTS 2-Light                        FGM          [*]            C          Long Haul        Variable          N N
BBA, [*] Blue Booster Amplif           FGM          [*]            C          Long Haul        Non-Variable      N Y
Phoenix OPA CCA w/Epitaxx PD           FGM          [*]            C          Long Haul        Variable          Y Y
Phoenix OBA CCA w/Epitaxx PD           FGM          [*]            C          Long Haul        Variable          Y Y
EPC, [*] Extra Pump Card, Op           FGM          [*]            C          Long Haul        n/a               Y N
OpA-C, Optical Assembly                FGM          [*]            C          Long Haul        Variable          N N
OBA-C, Optical Assembly                FGM          [*]            C          Long Haul        Variable          N N
OEP-C, Optical Assembly                FGM          [*]            C          Long Haul        We                N N
RBA, [*] Red Booster Amplifi           FGM          [*]            C          Long Haul        Non-Variable      Y Y
RBA-10G, [*] Red Booster Amp           FGM          [*]            C          Long Haul        Non-Variable      Y Y
RBA [*], Red Booster Amplif            FGM          [*]            C          Long Haul        Non-Variable      Y Y
Pre-L [*] Pre-Line Amplifier           FGM          [*]            C          Long Haul        Non-Variable      Y Y
RBA-10Ge                               FGM          [*]            C          Long Haul        Non-Variable      Y Y
[*] RBA 10G legacy new build           FGM          [*]            C          Long Haul        Non-Variable      Y Y
RBA 10GE                               FGM          [*]            C          Long Haul        Non-Variable      Y Y
[*] TXI Red Line Amplifier             FGM          [*]            C          Long Haul        ?                 N N
[*] TXI Blue Line Amplifie             FGM          [*]            C          Long Haul        ?                 N N
FGM C-Band Pre-Amplifier- P4C          FGM          [*]            C          Long Haul        Variable          N N
FGM-C-Band Pre-Amplifier - P3C         FGM          [*]            C          Long Haul        Variable          N N
FGM-C-Band Booster-Amplifier           FGM          [*]            C          Long Haul        Variable          N N
P3C PRE-AMP + B1 C PAIR                FGM          [*]            C          Long Haul        Variable          N N
P3L PRE-AMP + B1 L PAIR                FGM          [*]            L          Long Haul        Variable          N N
P4L PRE-AMP + B1 L PAIR                FGM          [*]            L          Long Haul        Variable          N N
P1 C SSA LINE AMP                      FGM          [*]            C          Long Haul        Variable          N N
P2C SSA LINE AMP                       FGM          [*]            C          Long Haul        Variable          N N
P1L L-Band Fiber Gain Module           FGM          [*]            L          Long Haul        Variable          N N
P2L L-Band Fiber Gain Module           FGM          [*]            L          Long Haul        Variable          N N
[*] P5C + B1C amplifier pa             FGM          [*]            C          Long Haul        Variable          N N
[*] Solstis p6 pre-amp                 FGM          [*]            C          Long Haul        Variable          N N
[*] Metro C-Band EDFA Modul            FGM          [*]            C          Metro            Non-Variable      Y N
[*] EDFA A                             FGM          [*]            L          Long Haul        Variable          Y N
</TABLE>

[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

<PAGE>

                                                      Corning License No. L03273

<TABLE>
<S>                                    <C>          <C>            <C>        <C>              <C>                <C>
[*] EDFA B                             FGM          [*]            L          Long Haul        Variable           Y N
[*] EDFA Booster                       FGM          [*]            L          Long Haul        Variable           Y N
[*] Regional-Metro EDFA-+              FGM          [*]            C          Metro            Variable           Y N
PureGain 2600 Marklll with OSC         FGM          [*]            C          Metro            Variable           Y N
[*] ILA 25-9                           FGM          [*]            C          Long Haul        Variable           Y N
PureGain 2600 MK I                     FGM          [*]            C          Metro            Variable           Y N
PureGain 2600 MK I with OSC            FGM          [*]            C          Metro            Variable           Y N
[*] TSD 10 dBm Booster                 FGM          [*]            C          SONET/SDH        Non-Variable       N N
[*] TSD 15 dBm Booster                 FGM          [*]            C          SONET/SDH        Non-Variable       N N
PureGain 2600 Mk II                    FGM          [*]            C          Metro            Variable           Y N
960nm/135mw, Lasertron pump (1         FGM                                                                        N
PureGain 2600 MK III                   FGM          [*]            C          Metro            Variable           Y N
PureGain 2600 MK III with OSC          FGM          [*]            C          Metro            Variable           Y N
PureGain IOG single Channel Pr         FGM          [*]            C          SONET/SDH        Non-Variable       N N
[*] 2.5 Gb/s Preamp - FG               FGM          [*]            C          SONET/SDH        Non-Variable       N N
Single Channel Pre-Amplifier (         FGM          [*]            C          SONET/SDH        Non-Variable       N N
[*] PureGain 1000 Single C             FGM          [*]            C          SONET/SDH        Non-Variable       N N
[*] PureGain 1000 Single C             FGM          [*]            C          SONET/SDH        Non-Variable       N N
[*] PureGain 1000 14.5 dBm             FGM          [*]            C          SONET/SDH        Non-Variable       N N
[*] PureGain 1000 14.5 dBm             FGM          [*]            C          SONET/SDH        Non-Variable       N N
[*] PureGain 1000 17.5 dBm             FGM          [*]            C          SONET/SDH        Non-Variable       N N
PureGain 2.5G Single-Channel B         FGM          [*]            C          SONET/SDH        Non-Variable       N N
PureGain 2.5 Single-Channel Bo         FGM                         C          SONET/SDH        Non-Variable       N N
Single Channel Booster Amplifi         FGM          [*]            C          SONET/SDH        Non-Variable       N N
FGM - Single Channel - 913             FGM          [*]            C          SONET/SDH        Non-Variable       N N
FGM - Single Channel - 914             FGM                                                                        N N
FGM Customer+15dBm-1AB16557000         FGM          [*]            C          SONET/SDH        Non-Variable       N N
Single Channel FGM; + 17 dBm           FGM          [*]            C          SONET/SDH        Non-Variable       N N
Low channel Count ADD amplifie         FGM                                                                        N N
Low channel Count DROP amplifi         FGM                                                                        N N
Small Gain Channel Add EDFA            FGM                                                                        N N
High Gain Channel Add EDFA w/c         FGM                                                                        N N
[*] 1924                               FGM          [*]            C          Long Haul        Non-Variable       N N
[*] 926 EDFA                           FGM          [*]            C          Long Haul        Non-Variable       N N
[*] Metro EDFA Pre-Amp                 FGM          [*]            C          Metro            Non-Variable       N N
[*] Metro EDFA Booster                 FGM          [*]            C          Metro            Non-Variable       N N
Puregain 1000 Gain Flattened C         FGM                                                                        N
OADM Add Post Amplifier                FGM          [*]            C          Long Haul        Non-Variable       Y N
OADM Add post amplifier                FGM          [*]            C          Long Haul        Non-Variable       Y N
OADM Drop Pre Amplifier                FGM          [*]            C          Long Haul        Non-Variable       Y N
OADM Boost Amplifier                   FGM          [*]            C          Long Haul        Non-Variable       Y N
[*] OADM Mux Amp                       FGM          [*]            C          Long Haul        Non-Variable       Y N
MOSAIC RAMAN L BAND-FGM                FGM          [*]            L          Long Haul        Raman              N N
Mosaic Raman C Band-FGM                FGM          [*]            C          Long Haul        Raman              N N
Raman [*] MPM                          FGM          [*]            C          Long Haul        Raman              N N
RPM-C2 (FGM)                           FGM          [*]            L          Long Haul        Raman              N N
RPM-DCM-C (FGM)                        FGM          [*]            L          Long Haul        Raman              N N
RPM-DCM-L (FGM)                        FGM          [*]            L          Long Haul        Raman              N N
[*] RPM                                FGM          [*]            L          Long Haul        Raman              N N
</TABLE>

[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

<PAGE>

                                                      Corning License No. L03273

<TABLE>
<S>                                    <C>          <C>            <C>        <C>              <C>            <C>
[*] RPM CO                             FGM          [*]            L          Long Haul        Raman          N N
[*] RPM DCM                            FGM          [*]            L          Long Haul        Raman          N N
[*] RPM GR                             FGM          [*]            L          Long Haul        Raman          N N
[*] Raman A low power                  FGM          [*]            L          Long Haul        Raman          Y N
[*] Raman B hi power                   FGM          [*]            L          Long Haul        Raman          Y N
[*] Raman                              FGM          [*]            L          Long Haul        Raman          Y N
Tornado 550R C-Band Raman              FGM                         C          Long Haul        Raman          Y N
Tornado 5500R C-Band Raman             FGM                         C          Long Haul        Raman          Y N
</TABLE>

[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.
<PAGE>

DISPERSION COMPENSATION MODULES:

         CURRENT PRODUCTION

<TABLE>
<S>              <C>      <C>            <C>
[*]
      DCF                 Code Name
[*]              [*]         [*]
[*]              [*]         [*]
[*]              [*]         [*]
[*]              [*]         [*]
[*]              [*]         [*]
[*]              [*]         [*]
MODULE TYPE
[*]                                      [*]
[*]                                      [*]
[*]                                      [*]
[*]                                      [*]
[*]                                      [*]
[*]                                      [*]
[*]                                      [*]l
[*]

PACKAGES
[*]
[*]
</TABLE>

MODULATORS:
MODULATORS
[*]

MODULES
[*]

[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

<PAGE>

CORNING INCORPORATED CONFIDENTIAL                                         PAGE 1

                                  EXHIBIT 1.10

NON-EXCLUSIVELY LICENSED PATENTS - PATENTS AND APPLICATIONS LISTED BELOW, THEIR
 FOREIGN AND US COUNTERPARTS, AND ANY AND ALL FORMS OF THE BELOW-LISTED PATENTS
    ISSUED OR GRANTED ANYWHERE IN THE WORLD, REISSUED AND REEXAMINED PATENTS,
     CONTINUATIONS, CONTINUATIONS-IN-PART, DIVISIONS AND EXTENSIONS THEREOF,
   APPLICATIONS THEREFOR AND ANY PATENTS WHICH MAY ISSUE ON SUCH APPLICATIONS,

[Exhibit 1.10 has been omitted and filed separately pursuant to a request for
confidential treatment filed with the Commission.]

<PAGE>

                                  EXHIBIT 1.11A

 PATENTS EXCLUDED FROM LICENSING - PATENTS AND APPLICATIONS LISTED BELOW, THEIR
 FOREIGN AND US COUNTERPARTS, AND ANY AND ALL FORMS OF THE BELOW-LISTED PATENTS
    ISSUED OR GRANTED ANYWHERE IN THE WORLD, REISSUED AND REEXAMINED PATENTS,
     CONTINUATIONS, CONTINUATIONS-IN-PART, DIVISIONS AND EXTENSIONS THEREOF,
   APPLICATIONS THEREFOR AND ANY PATENTS WHICH MAY ISSUE ON SUCH APPLICATIONS

[Exhibit 1.11a has been omitted and filed separately pursuant to a request for
confidential treatment filed with the Commission.]

<PAGE>

                                  EXHIBIT 1.11B

        CORNING CABLE SYSTEMS PATENTS FOR CORNING SOLELY LICENSED PATENTS

[Exhibit 1.11b has been omitted and filed separately pursuant to a request for
confidential treatment filed with the Commission.]

<PAGE>

                                  EXHIBIT 1.12

                              CORNING OCM PRODUCTS

-    [*] (but not amplifier fiber itself) and any type of module for optical
     amplification of signals for transmission of such signal in optical fiber
     over a distance of [*];

-    [*] pump lasers and any type of semiconductor chip or packaged laser for
     pumping amplifiers for signal transmission through fiber optic
     communications spans of [*];

-    Packaging for chromatic dispersion compensation fiber modules (but not DC
     fiber itself);

-    [*] modulators or electro-absorption modulators for optically modulating a
     data stream transmitted in optical fiber over a distance of [*];

-    Multiplexers/Demultiplexer devices for signals in optical fiber transmitted
     over a distance of [*];

-    Signal lasers, excluding VCSELs, for generating signals to be transmitted
     in optical fiber over a distance of [*];

-    Signal detectors for detecting signals transmitted in optical fiber over a
     distance of [*]; and

-    Thin-film filters and gratings for filtering signals transmitted in optical
     fiber over a distance of [*].

[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

<PAGE>

                                  EXHIBIT 1.14

                  CORNING TRANSFERRED THIRD PARTY IP CONTRACTS

<TABLE>
<CAPTION>
LICENSE REF. NUMBER                           YEAR/TITLE OF DOCUMENT
-------------------       --------------------------------------------------------------
<S>                       <C>
L02054                    2000 Sublicense with [*]

L02054.1                  Nov. 2000 Amendment to [*] Sublicense

L02059                    2000 Intellectual Property Rights Agreement between [*] and
                          Corning Inc.

L02068                    1997 License Agreement with [*] re Optical Amplifiers

L02073                    Cascades' assignable rights in 2000 License Agreement between
                          [*]

L02125                    2002 [*] Modulator Patent License

L03077                    1999 Amplifier Technology Transfer Agreement between Corning
                          Inc. and [*]

L02074                    To the extent transferable, the license granted by [*] in June
                          13, 2000 Agreement between [*] (as amended by License No.
                          L02059)
</TABLE>

[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

<PAGE>

                                                      Corning License No. L03272
                                            As of: July 31, 2003

                                  EXHIBIT 1.22

                               AVANEX COMPETITORS

[Exhibit 1.22 has been omitted and filed separately pursuant to a request for
confidential treatment filed with the Commission.]

<PAGE>

                                   EXHIBIT 5.2

      CORNING SOFTWARE AND SOFTWARE TOOLS SUBJECT TO ADDITIONAL LIMITATIONS

[Exhibit 5.2 has been omitted and filed separately pursuant to a request for
confidential treatment filed with the Commission.]

<PAGE>

                                   EXHIBIT 5.4

           AVANEX-CORNING CONFIDENTIALITY AGREEMENT RELATED TO CERTAIN
                     PHOTONICS INTELLECTUAL PROPERTY RIGHTS

This Avanex-Corning Confidentiality Agreement (this "Agreement") is made and
entered into this 31 day of July, 2003 by and between Corning, a New York
corporation, having its principal place of business at One Riverfront Plaza,
Corning, New York, 14831 ("Corning"), on the one hand, and Avanex Corporation, a
Delaware corporation, having its principal place of business at 40919
Encyclopedia Circle, Fremont, California 94538 ("Avanex"), on the other hand.
Avanex and Corning may each be referred to as a "Party" and collectively as the
"Parties."

                                   WITNESSETH

         1. In connection with the transactions contemplated by that certain
Share Acquisition and Asset Purchase Agreement among the Parties and Alcatel of
even date herewith (the "Purchase Agreement"), Avanex has acquired certain
assets of Corning. Under that certain Intellectual Property Rights Agreement
between Corning Incorporated and Avanex Corporation Relating to Photonics of
even date herewith (the "Corning IP Agreement"), Avanex has been granted certain
license rights in confidential and proprietary information and trade secrets of
Corning. Corning retains rights in these certain of its confidential and
proprietary information and trade secrets. The Parties wish to set forth their
obligations with respect to the use and disclosure of such proprietary and
confidential information and trade secrets pursuant to the transaction
contemplated by the Corning IP Agreement. Except as noted below, all capitalized
terms not defined herein have the meaning ascribed to them in the Corning IP
Agreement.

         2. Each Party, on behalf of itself and its Subsidiaries, agrees to
treat any Corning Licensed Know-How in accordance with the provisions of this
Agreement, and to take or abstain from taking certain other actions herein set
forth.

         3. For the purposes of this Confidentiality Agreement only, "Corning
Licensed Know-How" does not include information that is or becomes generally
available to the public other than as a result of a disclosure in breach of a
confidentiality obligation.

         4. Except as provided in Section 5 hereof:

         (e)      Avanex shall protect the Corning Licensed Know-How from
                  unauthorized use, dissemination, disclosure and publication by
                  using the same degree of care, but no less than a reasonable
                  degree of care, as the Party uses to protect its own
                  confidential information of a like nature from unauthorized
                  use, dissemination, disclosure and publication;

         (f)      Avanex shall not at any time, without the prior written
                  approval of Corning, disclose or reveal any item of Corning
                  Licensed Know How to any person or third party whatsoever
                  except to: (a) employees of Avanex who need know such item of
                  Corning Licensed Know-How in order to perform the obligations
                  or exercise the rights of Avanex granted to Avanex under the
                  Corning IP Agreement, (b) third parties who have a need to
                  know such item of Corning Licensed Know-How in order for
                  Avanex to exercise its rights granted to Avanex under the
                  Corning IP Agreement or fulfill its obligations under the
                  Corning IP Agreement, but only pursuant to a written
                  confidentiality agreement that is at least as protective as
                  those terms found herein;

<PAGE>

         (g)      Corning shall protect items of Corning Licensed Know-How which
                  are used exclusively or primarily in connection with the
                  manufacture and development of Corning Commercialized OCM
                  Products from unauthorized use, dissemination, disclosure and
                  publication by using the same degree of care, but no less than
                  a reasonable degree of care, as Corning uses to protect other
                  of its own confidential information of a like nature from
                  unauthorized use, dissemination, disclosure and publication;
                  and

         (h)      Corning shall not at any time, without the prior written
                  approval of Avanex, disclose or reveal any item of
                  Corning-Licensed Know-How which has use only or primarily in
                  connection with the manufacture and development of Corning
                  Commercialized OCM Products to any person or third party
                  whatsoever except to: (a) employees of Corning who need know
                  such item of Corning Licensed Know-How in order to perform the
                  obligations of Corning, or to exercise the rights granted to
                  and retained by Corning under the Corning IP Agreement, (b)
                  third parties who have a need to know such item of Corning
                  Licensed Know-How in order for Corning to exercise its rights
                  granted to and retained by Corning under the Corning IP
                  Agreement or fulfill its obligations under the Corning IP
                  Agreement, but only pursuant to a written confidentiality
                  agreement that is at least as protective as those terms found
                  herein.

         5. If a Party is required by legal process to make any disclosure that
is not permitted by this Agreement, the Party will promptly (and, in any event,
before complying with any such requirement) provide the other Party with notice
of such requirement so that the other Party may seek a protective order or other
appropriate remedy and/or waive compliance with the provisions of this
Agreement. Subject to the foregoing, the Party may disclose only that portion of
the Corning Licensed Know-How that the Party is legally required to disclose;
provided, however, that the Party must cooperate at the other Party's expense in
the other Party's effort to obtain an appropriate protective order or other
reliable assurance that confidential treatment will be accorded to any Corning
Licensed Know-How so disclosed. In the event that a Party has complied fully
with the provision of this paragraph, such disclosure may be made by the Party
without any liability hereunder.

         6. No failure by a Party to exercise any right, power or remedy
hereunder shall constitute a waiver thereof nor shall any single or partial
exercise thereof preclude any further exercise thereof. No amendment, waiver or
other modification of any provision of this Agreement shall be effective unless
in writing and signed by both of the Parties hereto.

         7. This Agreement and the Corning IP Agreement constitute the entire
agreement between the Parties with respect to the subject matter hereof and
supercede all prior agreements and understandings, both written and oral,
between the Parties with respect to the subject matter hereof. This Agreement
does not supersede any prior confidentiality agreement between the parties,
including the Confidentiality Agreement dated March 12, 2003, with respect to
confidential information which is outside the scope of this Agreement

         8. This Agreement will remain in full force and effect with respect to
each item of Corning Licensed Know-How until that item of Corning Licensed
Know-How becomes publicly known and made generally available through no breach
of this Agreement by a Party.

<PAGE>

         9. This Agreement shall be interpreted and construed so as to be
consistent with the Corning IP Agreement.

         10. This Agreement shall be governed and construed in accordance with
the laws of New York, without regard to choice of law provisions.

         11. This Agreement will bind and inure to the benefit of the Parties
hereto and their successors and assigns. Any failure to enforce any provision of
this Agreement will not constitute a waiver thereof or of any other provision.
This Agreement may not be amended, nor any obligation waived, except by a
writing signed by both Parties hereto.

Made and entered into this 31 day of July, 2003.

Avanex Corporation                                 Corning Incorporated

By: /s/ Anthony A. Florence                        By:  /s/ Mark W. Lauroesch

Name: Anthony A. Florence                          Name: Mark W. Lauroesch

Title: Sr. Vice President, Corporate Affairs       Title: Assistant Secretary

<PAGE>

                                  EXHIBIT 11.1

                   DCM TRADEMARK QUALITY OBLIGATION MILESTONES

(Capitalized terms not otherwise defined in the IP Agreement are as defined in
the Fiber Supply Agreement)

                  (i)      Avanex meets at least a [*] percent ([*]%) ship to
                           commit Modules rate during each [*] rolling period
                           during the Term. For purposes of the preceding
                           sentence, "ship to commit" means completed Modules
                           (excluding zero value samples) which meet Avanex's
                           committed ship dates for all of its customers'
                           purchase orders divided by the total shipped Modules
                           for the same period. In administering the preceding
                           sentence, for a purchase order to be counted as a
                           "ship to commit", all Modules in such purchase order
                           have to be shipped by Avanex's committed to ship
                           date. If Avanex fails to "ship to commit" solely
                           because (a) Corning fails to "ship to commit"
                           dispersion compensating optical fiber or (b) any such
                           fiber is in breach of the fiber warranty contained in
                           paragraph 1 of Annex II of the Fiber Supply
                           Agreement, as determined pursuant to the procedures
                           contained in such paragraph 1 of the Fiber Supply
                           Agreement; then in either such event such resulting
                           late Avanex Module shipment shall not count as a
                           failure to "ship to commit" for purposes of this
                           paragraph (i) and such fiber in (a) and (b) shall not
                           be included in the market share calculation in (iv)
                           below.

                  (ii)     Each [*] during the Term less than [*] percent ([*]%)
                           of the total volume of Modules shipped during such
                           [*] was returned by Avanex either due to quality
                           deficiencies in or repairs (in either event within
                           the Module contractual warranty period) to Modules
                           (excluding loaned Module samples which are returned).
                           Not to be included in such returns (and not to be
                           included in market share calculation in (iv) below)
                           shall be any returns solely caused by any fiber for
                           such Modules which is in breach of the fiber warranty
                           contained in paragraph 1 of Annex II of the Fiber
                           Supply Agreement, as determined pursuant to the
                           procedures contained in such paragraph 1 of the Fiber
                           Supply Agreement. By way of clarification, such
                           returned Modules may have been shipped either during
                           or before such [*] period.

[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

<PAGE>

                  (iii)    Avanex is qualified and/or on the approved vendor
                           list to sell (or is capable of selling in commercial
                           quantities) its Modules at all times during the Term
                           to at least the following numbers of leading long
                           haul DWDM systems providers, as determined quarterly
                           by the Dell 'Oro survey: [*] for SMF-28 C band
                           systems, [*] for LEAF C band systems and [*] for LEAF
                           L band systems.

                  (iii)Avanex has maintained a worldwide market share in Module
                           revenues of not less than [*] percent ([*]%) during
                           any [*] during the Term; provided that Corning has
                           been supplying Contract Fiber to Avanex to the extent
                           provided by the Fiber Supply Agreement. For purposes
                           of the preceding sentence, "market share" shall mean
                           the revenue of Avanex's worldwide shipments of
                           Modules divided by the revenue of all worldwide
                           Module shipments, on a quarterly basis. The foregoing
                           restrictions shall apply only while Corning is in
                           compliance with the material provisions of the Fiber
                           Supply Agreement.

[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.<PAGE>

                                                                    EXHIBIT 10.3

NOTE: Information in this document marked with an "[*]" has been omitted and
filed separately with the Commission. Confidential treatment has been requested
with respect to the omitted portions.

                              AGREEMENT OF SUBLEASE

                                 By and Between

                     CORNING PROPERTY MANAGEMENT CORPORATION

                                 As Sublandlord

                                       and

                               AVANEX CORPORATION

                                  As Subtenant,

                              Dated: July 31, 2003

                                    Premises:

                            9676 Lynne Morse Road
                            Painted Post,
                            Steuben County, New York

                                 Tax Parcel No:

<PAGE>

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                                                                      PAGE
<S>                                                                                                                   <C>
ARTICLE I.         THE DEMISED PREMISES AND SUBTENANT'S PERMITTED USE..........................................         1

   Section 1.01      Demised Premises..........................................................................         1
   Section 1.02      Subtenant's Permitted Use.................................................................         1

ARTICLE II.        CONDITION OF DEMISED PREMISES...............................................................         2

ARTICLE III.       TERM........................................................................................         2

ARTICLE IV.        RENT AND SECURITY DEPOSIT...................................................................         2

   Section 4.01      Base Rent.................................................................................         2
   Section 4.02      Additional Rent/Payment of Operating Expenses.............................................         3
   Section 4.03      Taxes.....................................................................................         3
   Section 4.04      Sublandlord's Casualty Insurance..........................................................         4
   Section 4.05      Place of Payment..........................................................................         4
   Section 4.06      Late Fee..................................................................................         4
   Section 4.07      Security Deposit..........................................................................         4

ARTICLE V.         ALTERATIONS, SIGNS..........................................................................         5

   Section 5.01      Alterations to the Demised Premises.......................................................         5
   Section 5.02      Mechanic's Liens..........................................................................         5
   Section 5.03      Signs.....................................................................................         6
   Section 5.04      Insurance Covering Subtenant's Alterations................................................         6

ARTICLE VI.        REPAIRS, COMPLIANCE, SURRENDER..............................................................         6

   Section 6.01      Repairs and Maintenance...................................................................         6
   Section 6.02      Compliance................................................................................         6
   Section 6.03      Sublandlord Repairs.......................................................................         7
   Section 6.04      Surrender of Premises.....................................................................         7
   Section 6.05      Subtenant Facility Contracts..............................................................         8
   Section 6.06      Sublandlord Service Contracts.............................................................         8

ARTICLE VII.         SERVICEs..................................................................................         8

   Section 7.01      Utility Service...........................................................................         8
   Section 7.02      Liability of Sublandlord with Respect to Utilities........................................         8
   Section 7.03      Culinary Service..........................................................................         9
   Section 7.04      Security Service..........................................................................         9

ARTICLE VIII.        ENVIRONMENTAL MATTERS.....................................................................         9

   Section 8.01      Definitions...............................................................................         9
   Section 8.02      Environmental Requirements/Hazardous Materials............................................        10
   Section 8.03      Indemnification by Sublandlord............................................................        11
   Section 8.04      Indemnification by Subtenant..............................................................        12
</TABLE>

                                       i

<PAGE>

<TABLE>
<S>                                                                                                                    <C>
ARTICLE IX.        TRANSFER OF INTEREST BY SUBTENANT...........................................................        12

   Section 9.01      Assignment or Sublet......................................................................        12

ARTICLE X.         TRANSFER OF INTEREST OF SUBLANDLORD.........................................................        13

   Section 10.01     Sale of Demised Premises..................................................................        13

ARTICLE XI.        DESTRUCTION AND INSURANCE...................................................................        13

   Section 11.01     Rent Abatement; Sublease Termination......................................................        13
   Section 11.02     Waiver of Subrogation.....................................................................        14
   Section 11.03     Casualty Insurance........................................................................        14
   Section 11.04     Liability Insurance.......................................................................        14

ARTICLE XII.         CONDEMNATION..............................................................................        15

ARTICLE XIII.        INDEMNITY, LIABILITY AND INSURANCE........................................................        15

   Section 13.01     Subtenant's Indemnity.....................................................................        15
   Section 13.02     Sublandlord's Indemnity...................................................................        16
   Section 13.03     General Provisions with Respect to Insurance..............................................        16

ARTICLE XIV.         COVENANT OF QUIET ENJOYMENT...............................................................        17

ARTICLE XV.          DEFAULTS & REMEDIES.......................................................................        17

   Section 15.01     Defaults..................................................................................        17
   Section 15.02     Sublandlord Remedies......................................................................        18
   Section 15.03     Sublandlord Default.......................................................................        19

ARTICLE XVI.         ESTOPPEL CERTIFICATE......................................................................        20

ARTICLE XVII.        RIGHT OF ACCESS...........................................................................        20

   Section 17.01     Sublandlord's Rights......................................................................        20
   Section 17.02     Sublandlord's Covenants...................................................................        21

ARTICLE XVIII.       PROVISIONS REGARDING MASTER LEASE.........................................................        21

   Section 18.01     Subject to Master Lease...................................................................        21
   Section 18.02     Conflict with Master Lease................................................................        21

ARTICLE XIX.         INTERPRETATION, NOTICE, MISCELLANEOUS.....................................................        21

   Section 19.01     Interpretation............................................................................        21
   Section 19.02     Construing Various Words and Phrases......................................................        22
   Section 19.03     Entire Agreement..........................................................................        22
   Section 19.04     Communications............................................................................        22
   Section 19.05     Method of Payment.........................................................................        23
   Section 19.06     Successors and Assigns....................................................................        23
   Section 19.07     Responsibility of Subtenant...............................................................        23
   Section 19.08     Brokerage.................................................................................        24
   Section 19.09     Applicable Law............................................................................        24
   Section 19.10     Consent to Assignment.....................................................................        24
</TABLE>

                                       ii

<PAGE>

EXHIBITS

EXHIBIT A-1 - Legal Description
EXHIBIT A-2 - Demised Premises
EXHIBIT A-3 - Excluded Equipment (Assets Owned by Sublandlord, Used by
              Subtenant)
EXHIBIT A-4 - IT Assets
EXHIBIT A-5 - Contracts Administered by Sublandlord, Costs Reimbursed by
              Subtenant
EXHIBIT B   - Option to Renew Sublease
EXHIBIT C   - Culinary Services
EXHIBIT D   - Security Services

                                      iii

<PAGE>

                                    SUBLEASE

         This SUBLEASE, dated July 31, 2003, is made by and between Corning
Property Management Corporation ("Sublandlord"), a Delaware corporation, and
Avanex Corporation ("Subtenant"), a Delaware corporation.

         WHEREAS, the parties have entered into a Share Acquisition and Asset
Purchase Agreement dated May 12, 2003 (the "Purchase Agreement"), pursuant to
which Subtenant has agreed to purchase and Sublandlord shall has agreed to sell
Subtenant certain assets of Sublandlord's business located on the Demised
Premises (as defined below), as well as certain other assets; and

         WHEREAS, The Steuben County Industrial Development Agency ("SCIDA") as
tenant entered into a Lease Agreement dated December 1, 2001, as amended from
time to time with Corning Incorporated (as property owner or "Parent") and
thereafter entered into a Leaseback Agreement, as amended from time to time with
Parent dated December 1, 2001 ("Master Lease"); and

         WHEREAS, Parent assigned the Master Lease to Sublandlord by that
certain Assignment and Assumption Agreement between Parent and Sublandlord dated
as of December 1, 2001; and

         WHEREAS, the Subtenant desires to continue to conduct the businesses
conducted at the Demised Premises prior to the effective date of the Purchase
Agreement and Sublandlord desires to sublease the Demised Premises to Subtenant
for such purpose, pursuant to the terms of this Sublease.

         NOW, THEREFORE, the parties hereto, for themselves, their successors
and assigns, hereby covenant as follows:

ARTICLE I. THE DEMISED PREMISES AND SUBTENANT'S PERMITTED USE

         Section 1.01 Demised Premises.

         Sublandlord hereby subleases to Subtenant, and Subtenant hires from
Sublandlord, subject to the terms, conditions and provisions contained in this
Sublease, certain real property located at 9676 Lynn Morse Drive, Painted Post,
Steuben, County, New York, which real property is further described on EXHIBIT
A-1 attached hereto, together with all of Sublandlord's buildings (the
"Buildings") and improvements, located thereon, all as shown on EXHIBIT A-2
attached hereto (collectively, the "Demised Premises" or "Premises"). Equipment
identified on EXHIBIT A-3 shall be used by Subtenant during the Sublease Term
and shall remain the property of Sublandlord. Subtenant covenants that it shall
use such equipment for the purpose and manner it is intended, shall keep the
equipment in good condition and shall repair such equipment as necessary at its
own expense, costs related to reasonable wear and tear excluded. Information
Technology Assets that have been, or will be transferred to Subtenant, are
identified on EXHIBIT A-4.

         Section 1.02 Subtenant's Permitted Use.

         Subtenant may use and occupy the Demised Premises for the manufacturing
of electronic and/or optical products using processes comparable to the
manufacturing currently conducted on the Demised Premises and for associated
research and development, office, parking and other legal related uses and for
no other use whatsoever. Subtenant's use and occupancy of the Demised

                                       1
<PAGE>

Premises shall in no way adversely affect the qualification of the Demised
Premises as a "project" as such quoted term is defined in Section 854 of Article
18-A of the General Municipal Law of The State of New York (the "Act").

ARTICLE II. CONDITION OF DEMISED PREMISES

         Notwithstanding anything to the contrary in this Sublease, Sublandlord
warrants and represents that as of the Commencement Date (as defined in Article
III below), (i) the Demised Premises will be in good condition and repair and
the electrical, mechanical, HVAC, plumbing, elevator and other systems serving
the Demised Premises will be in good condition and repair; and (ii) the Demised
Premises shall conform to all requirements of covenants, conditions,
restrictions and encumbrances ("CC&R's"), all underwriter's requirements, and
all rules, regulations, statutes, ordinances, laws and building codes,
(collectively, "Laws") applicable thereto. Subtenant shall not be required to
construct or pay the cost of complying with any CC&R's, underwriter's
requirements or Laws requiring construction of improvements in the Premises
which are properly capitalized under general accounting principles, unless such
compliance is necessitated solely because of Subtenant's particular use of the
Demised Premises. Subtenant's acceptance of the Demised Premises shall not be
deemed a waiver of Subtenant's right to have defects in the Demised Premises
repaired at Sublandlord's sole expense. Subtenant shall give notice to
Sublandlord whenever any such defect becomes reasonably apparent, and
Sublandlord shall repair such defect as soon as practicable. Sublandlord also
hereby assigns to Subtenant all warranties with respect to the Premises, which
would reduce Subtenant's maintenance obligations hereunder and shall cooperate
with Subtenant to enforce all such warranties. Except as otherwise expressly
provided in this Sublease, Subtenant accepts possession of the Demised Premises
in its "as is" condition as of the date of this Sublease. SCIDA makes no
representations or warranties to the condition of or title to the Demised
Premises.

ARTICLE III. TERM

         The initial term of this Sublease ("Initial Term") shall commence as of
the date of this Sublease (the "Commencement Date") and shall continue until
July 31, 2005 at 11:59 p.m. So long as Subtenant is not then in Default as
defined in Section 15.01 hereof, Subtenant shall have two (2) two (2) year
options to renew this Sublease on the terms and conditions of EXHIBIT B attached
hereto. (Each such additional two-year period hereinafter referred to as a
"Renewal Term"). The Initial Term and all renewals thereof shall together be
referred to as the "Term". Subtenant hereby agrees that if it fails to surrender
the Premises at the end of the Term, or any renewal thereof, (i) all of the
terms of this Sublease shall continue on a month-to-month basis until terminated
by either party by not less than thirty (30) days prior written notice to the
other; (ii) Subtenant will be liable to Sublandlord for any and all damages
which Sublandlord shall suffer by reason thereof; and (iii) Subtenant will
indemnify Sublandlord against all claims and demands made by any succeeding
subtenants against Sublandlord, founded upon delay by Sublandlord in delivering
possession of the Premises to such succeeding subtenant.

ARTICLE IV. RENT AND SECURITY DEPOSIT

         Section 4.01 Base Rent.

                                        2
<PAGE>

During the Initial Term, Subtenant shall pay base rent (the "Base Rent") to
Sublandlord at the annual rate of $[*], which Base Rent shall be paid annually
on the Commencement Date and each anniversary thereof.

         Section 4.02 Additional Rent/Payment of Operating Expenses.

         Wherever it is provided in this Sublease that Subtenant is required to
make any payment other than Base Rent to Sublandlord, the payment shall be
deemed to be "Additional Rent" and all remedies applicable to the non-payment of
Base Rent shall also be applicable to the nonpayment of Additional Rent. As used
herein the word "Rent" shall mean, collectively, Base Rent and Additional Rent.
Subtenant agrees to pay, as Additional Rent, the following: (i) Subtenant's
portion of Major Capital Repairs as provided in Section 6.01 below, and (ii)
Sublandlord's out-of-pocket costs for third party contracts maintained by
Sublandlord (including, without limitation, those contained on EXHIBIT A-5
attached hereto) with respect to Sublandlord's repair and maintenance
obligations set forth in Section 6.03 hereof, (iii) Sublandlord's charges for
the Culinary Services pursuant to Section 7.03 hereof, and (iv) Sublandlord's
charges for the Security Services pursuant to Section 7.04 hereof (collectively,
the "Sublandlord Operating Expense Charges"). Sublandlord shall provide an
invoice to Subtenant for Sublandlord Operating Expense Charges no more
frequently than once per calendar month. Subtenant shall reimburse Sublandlord
for the invoiced amount of Sublandlord's Operating Expense Charge no later than
thirty (30) days following Subtenant's receipt thereof. Upon request,
Sublandlord shall promptly provide Subtenant with back-up information regarding
the Sublandlord Operating Expense Charges. The parties shall cooperate in good
faith to resolve any disputes regarding invoiced amounts.

         Section 4.03 Taxes.

         A.       As used in this Sublease, the term "Real Property Taxes" shall
mean all taxes, assessments, water, sewer, or other rents and charges, excises,
levies, fees (including, without limitation, licenses, permits, inspections,
authorizations and similar fees), and all other governmental charges, whether
general or special, ordinary or extraordinary, foreseen or unforeseen, which are
imposed against all or any portion of the Demised Premises during the Term. If,
at any time during the Term, the methods of taxation prevailing on the
Commencement Date shall be altered, modified, or changed, in whole or in part,
so that in lieu of, or as an addition to, or as a substitute for the whole or
any part of the Real Property Taxes, there shall be levied, assessed or imposed
on the Demised Premises any new taxes, assessments, levies, impositions, charges
or special assessments, then all such taxes, assessments, levies, impositions,
charges or special assessments shall be deemed to be included within the term
Real Property Taxes.

         B.       Subtenant shall pay, on the first day of each month 1/12th of
the annual Real Property Taxes paid by Sublandlord for the fiscal tax year the
applicable month occurs.

         C.       If, at any time during the Term, a tax on Rent or other tax,
however described, is assessed, levied or imposed upon the Demised Premises or
against Sublandlord under the laws of the State of New York or any political
subdivision thereof, in lieu of, or as a substitute in whole or in part for, the
Real Property Taxes referred to in Section 4.03.A, then the same shall be deemed
included in the term "Real Property Taxes.

[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

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         D.       Real Property Taxes which accrue partially prior to the
Commencement Date and subsequent to the expiration or termination of this
Sublease shall be equitably apportioned so that Subtenant shall pay only such
portion of such Real Property Taxes as shall be attributable to the portion of
any such fiscal tax year occurring during the Term.

         E.       Notwithstanding anything to the contrary in this Sublease, the
definition of "Real Property Taxes" shall not include taxes, assessments, or
governmental levies on Sublandlord's income, or with respect to any inheritance
or estate planning or with respect to any improvements or services not made
available for Subtenant's use or that do not otherwise benefit Subtenant. In no
event shall Subtenant be responsible or liable in any manner for any payment,
clawback, charge, expense, reimbursement or liability associated with any tax
abatements or tax benefits granted to Sublandlord or any Affiliate of
Sublandlord (as defined in the Purchase Agreement).

         F.       Not withstanding anything to the contrary in the Sublease or
any other document, Subtenant's agreement to pay Real Property Taxes shall in no
way relieve, discharge or reduce Sublandlord's obligation to make payments under
that Certain Payment-in-Lieu-of-Tax-Agreement, dated as of December 1, 2001, by
and between Sublandlord (as assignee of Parent) and SCIDA, as amended from time
to time (the "PILOT Agreement").

         Section 4.04 Sublandlord's Casualty Insurance.

                  Subtenant shall pay, on a monthly basis at the same time as
monthly payments of Base Rent are due, 1/12th of the annual insurance premium
paid by Sublandlord for the casualty insurance policy referenced in Section
11.03(a).

         Section 4.05 Place of Payment.

                  Rent shall be payable by Subtenant to Sublandlord to the
attention of President, Corning Property Management Corporation, at the address
set forth in Section 19.04(C) hereof or at any other place designated by notice
given by Sublandlord to Subtenant pursuant to Section 19.04.

         Section 4.06 Late Fee.

                  Any Rent payment that is not made when due shall be subject to
a late fee equal to five percent (5%) of the amount not paid when due for each
month or portion thereof from the due date to the date of payment.

         Section 4.07 Security Deposit.

                  No later than five (5) business days after execution of the
Lease, Subtenant will provide a security deposit in the amount of $[*] in
readily available funds payable to Sublandlord (the "Deposit"). The Deposit
provided herein shall be considered as security for the payment and performance
by Subtenant of all Subtenant's obligations covenants, conditions and agreements
under this Lease. In the event of any default by Subtenant hereunder,
Sublandlord shall have the right, but shall not be obligated, to apply all or
any portion of the Deposit to cure such default, in which event Subtenant shall
be obligated to promptly Deposit with Sublandlord that portion of the Deposit
used to cure the default. In the event Subtenant fails to perform its
obligations, said Deposit shall not be

[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

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deemed liquidated damages, and application of the Deposit to reduce Subtenant's
damages shall not preclude Sublandlord from recovering additional damages
incurred by Sublandlord. The Deposit (or any remaining portion after proceeds
have been applied by Sublandlord to a default of Subtenant hereunder as
permitted herein) shall be returned by Sublandlord to Subtenant within thirty
(30) days of the Lease termination. If Sublandlord assigns or transfers its
interest in the Premises, Sublandlord shall deliver or credit the Security
Deposit to Sublandlord's successor in interest in the Premises and thereupon be
relieved of further responsibility with respect to the Security Deposit so long
as such assignee or transferee expressly agrees in writing to return such
Security Deposit to Subtenant in accordance with this Section 4.07.

ARTICLE V. ALTERATIONS, SIGNS

         Section 5.01 Alterations to the Demised Premises.

         Upon prior notice to Sublandlord, Subtenant shall have the right to
perform any nonstructural alterations, installations, additions, improvements or
capital replacements to the Demised Premises (collectively "Alterations")
costing less than $[*] per project. Subtenant shall not perform any structural
Alterations or any Alterations costing more than $[*] per project without
obtaining the prior written consent of Sublandlord, which consent shall not be
unreasonably withheld, conditioned or delayed. Any Alterations shall be
performed at Subtenant's sole expense, in a good and workmanlike manner and in
compliance with all laws applicable to the Demised Premises. Upon substantial
completion of any Alterations, Subtenant shall provide Sublandlord with a copy
of any as-built plans of the Alterations that it has obtained at Subtenant's
sole costs and expense. Any approval of Sublandlord shall not be construed as an
opinion as to whether the Alterations will comply with applicable laws or be
sufficient for Subtenant's purposes and Sublandlord shall have no liability
therefore. Notwithstanding anything to the contrary contained in this Section
5.01, Sublandlord acknowledges that Subtenant shall not be required to provide
Sublandlord notice or obtain Sublandlord's consent in the event Subtenant is
relocating its personal property, including its equipment or machinery
("Subtenant's Equipment Relocation") notwithstanding the amount of the cost of
Subtenant's Equipment Relocation. Any such alterations or Subtenant's Equipment
Relocation shall not result in the use and operation of the Demised Premises to
fail to qualify as a "project" under the Act.

         Section 5.02 Mechanic's Liens.

         No alteration performed by Subtenant pursuant to this Sublease, shall
be deemed to be for the immediate use and benefit of the Sublandlord. If any
mechanic's or materialman's lien is filed against the Demised Premises as a
result of any Alterations made by Subtenant, or any other work or act of
Subtenant, Subtenant shall discharge same, by payment or bonding, within thirty
(30) days from receiving notice of the filing of the lien. If Subtenant shall
fail to discharge the lien within such thirty (30) day period, Sublandlord may,
in its sole discretion, in addition to any other legal or equitable remedies
available to Sublandlord, bond or pay the lien or claim for the account of
Subtenant and Subtenant shall be obligated to reimburse Sublandlord for all
reasonable costs and expenses incurred by Sublandlord in doing so, including
reasonable attorney's fees, bond premiums and any reasonable expenses incident
to litigation with respect to any bond and any action brought to

[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

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either foreclose or enforce the lien, within ten (10) days after Subtenant's
receipt of a detailed invoice therefore.

         Section 5.03 Signs.

         A.       Subtenant may erect signs on the Demised Premises in a manner
and location as reasonably determined by Subtenant to be necessary, provided
that Subtenant obtains any necessary permits and licenses prior to installing
such signs. Subtenant shall install its signs at its own expense and shall
remove them at the termination of this Sublease. Any damage to improvements
located on the Demised Premises as a result of the installation or removal of
Subtenant's signs shall be promptly repaired at the expense of Subtenant.

         B.       Subtenant shall obtain and pay for all permits and licenses
relating to signs permitted, by this Section 5.03. Copies of all such permits
and licenses shall be delivered to Sublandlord promptly upon receipt by
Subtenant.

         Section 5.04 Insurance Covering Subtenant's Alterations.

         Subtenant shall not commence performing any Alterations unless prior
thereto Subtenant shall obtain, or cause its contractor(s) to obtain, (and
during the performance of such work keep in force) commercial general liability
insurance and worker's compensation insurance to cover every contractor to be
employed and builder's risk insurance. The policies shall be in amounts approved
by Sublandlord, in Sublandlord's reasonable discretion, shall be non-cancelable
without thirty (30) days' notice to Sublandlord and the commercial general
liability insurance policy shall name Sublandlord as an additional insured.

ARTICLE VI. REPAIRS, COMPLIANCE, SURRENDER

         Section 6.01 Repairs and Maintenance. [*]

         Section 6.02 Compliance.

         Subtenant shall, at its sole expense, with respect to its particular
use of the Demised Premises, observe and comply promptly with all present and
future legal requirements relating to the Demised Premises, including without
limitation, (i) all Laws, including but not limited to State of New York
building codes and environmental laws and Steuben County Health Department rules
and regulations; (ii) securing and complying with all permits, licenses, or
other required authorizations. Subtenant shall not be required to pay for or
perform any improvements or incur any capitals expenditures to comply with any
Laws hereunder except to the extent such legal requirements are caused by
Subtenant's particular use of the Demised Premises or as a result of Subtenant's
installation of improvements therein. If Subtenant fails to comply with its
obligations under Section 6.01 above or this Section 6.02, then after ten (10)
business days notice and opportunity to cure, and provided that Subtenant has
not commenced a cure and is not diligently prosecuting such cure, Sublandlord
may, but shall have no obligation to, proceed to have such work performed as
Sublandlord shall determine, in its sole discretion, is necessary to comply with
the requirements of

[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

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Section 6.01, above or this Section 6.02. Within ten (10) days after Sublandlord
renders a bill for such repairs, Subtenant shall reimburse Sublandlord for the
cost of making such repairs or costs associated with compliance.

         Section 6.03 Sublandlord Repairs.

         Sublandlord shall make, at its sole cost and expense, all repairs to
the building structure, including the roof structure, roof, load bearing walls
and foundation, and underground utility conduits as well as all Major Capital
Repairs (whether required as a result of a change in Laws that is not a
Subtenant obligation hereunder or otherwise) and the Excluded Equipment
identified on EXHIBIT A-3 subject to Subtenant's obligation to reimburse
Sublandlord for a portion of Major Capital Repairs as provided in Subsection
6.01 above. In addition, Sublandlord shall be responsible for all repairs,
maintenance and replacement to the generators at the Premises, the fire
suppression sprinkler system, air compressors, central vacuum system, HVAC
systems and controls, Premises lighting controls, kitchen equipment installed in
the cafeteria, cooling towers and boilers, water softening systems, docks and
levelers, electrical systems to the local point of distribution (such as a buss
bar or breaker panel), grease traps, sewer systems, fire and security systems
and controls, and pest control. Sublandlord shall provide to Subtenant
reasonable prior notice and shall use reasonable efforts to access the Premises
and implement the repairs without material disruption of Subtenant's use
hereunder. No notice is required should Sublandlord desire to make repairs under
emergency circumstances.

         Section 6.04 Surrender of Premises.

         Upon the expiration or other termination of this Sublease, Subtenant
shall quit and surrender the Demised Premises broom clean, and in the same
condition the Demised Premises were in at the Commencement Date, except for
normal wear and tear, casualty and condemnation and Hazardous Substances for
which Subtenant is not liable under the terms of this Sublease. Any and all
Alterations shall be the property of the Sublandlord, except that (i) Subtenant
shall be entitled to remove any of its trade fixtures, equipment and personal
property, provided that Subtenant repairs any damage to the Demised Premises
caused by such removal and (ii) Subtenant shall be required to remove any
Alterations which Sublandlord expressly requires Subtenant to remove as a
condition of Sublandlord approving any such Alterations.

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<PAGE>

         Section 6.05 Subtenant Facility Contracts.

         It is the intent that the service contracts listed on EXHIBIT A-6
attached hereto be assigned to Subtenant as of the Commencement Date or that
Subtenant shall enter into its own contracts with the applicable vendor
("Subtenant Service Contracts"). Whether or not such assignment is completed by
the Commencement Date, Subtenant agrees that it as of the Commencement Date,
Subtenant shall be solely responsible, financially and otherwise, for the
Subtenant Service Contracts, provided that in no event shall Subtenant be liable
in any respect for any obligations under the Subtenant Service Contracts to the
extent applicable to events, activities or circumstances arising prior to the
Commencement Date. Payment terms shall be negotiated between Subtenant and each
vendor identified on EXHIBIT A-6. Nothing contained in this Section 6.05 shall
require Subtenant to keep any or all of the Subtenant Service Contracts in
effect during the Term or to maintain a contract with any particular vendor. All
such decisions in this regard shall be at the sole discretion of Subtenant.

         Section 6.06 Sublandlord Service Contracts.

         EXHIBIT A-5 identifies the repair and maintenance service contracts
that are currently administered by Sublandlord with respect to certain of the
Sublandlord repair and maintenance responsibilities, including but not limited
to those identified on Section 6.03 hereof ("Sublandlord Service Contracts").
Sublandlord shall have the right to charge Subtenant the out-of-pocket costs of
the Sublandlord Service Contracts pursuant to Section 4.02 hereof. Sublandlord
shall have the right to change vendors or re-negotiate the Sublandlord Service
Contracts, provided, however, that if the change of any vendor or contract
results in a material increase in the cost of the service covered by such
contract, Sublandlord shall consult with Subtenant with respect to such
contract, and Subtenant shall have the right, on thirty (30) days advance
written notice to Sublandlord, to assume in writing the repair and maintenance
responsibilities relating to such contract under Section 6.01, and upon such
assumption, Sublandlord shall no longer have the corresponding responsibility
under Section 6.03 and shall not charge Subtenant for such contract under
Section 4.02 hereof.

ARTICLE VII. SERVICES

         Section 7.01 Utility Service.

         Subtenant shall pay for all utility service charges applicable to the
Demised Premises during the Term, including any and all electric, gas, water,
pure water, sewer and telephone charges, and trash removal.

         Section 7.02 Liability of Sublandlord with Respect to Utilities.

         Sublandlord shall not be liable for any interruption or failure in the
supply of utility services to the Demised Premises, unless such interruption or
failure is caused by the negligent affirmative acts of Sublandlord. In the event
of any interruption or failure of any utility services to the Demised Premises
caused by circumstances beyond the control of Subtenant that continues for a
period of sixty (60) days or more and is not caused by damage or casualty to the
Premises (which time period shall not commence until Subtenant has provided
written notice to Landlord of such interruption or failure), Subtenant shall
have the right to terminate this Sublease by providing notice to Sublandlord no
later than ten (10) days following expiration of such thirty (30) day period.

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<PAGE>

         Section 7.03 Culinary Service.

         Attached as EXHIBIT C is a description of the culinary services that
Subtenant has asked Sublandlord to provide and which Sublandlord is willing to
provide (the "Culinary Services") to enable food and beverages to be purchased
by Subtenant employees employed at and visitors to the Premises. Subtenant has
agreed to pay to Sublandlord on a monthly basis, an amount reasonably allocated
to Subtenant to subsidize Sublandlord's projected costs associated with managing
the provision of these services as noted in EXHIBIT C. (The subsidy may be
adjusted annually.) Sublandlord will provide the Culinary Services to Subtenant
for the Term of this Lease Agreement, provided, however, either party may
terminate the delivery or receipt of Culinary Services by providing at least
ninety (90) days advance written notice, provided, however, that Sublandlord
shall not have the right to terminate this service during the initial two (2)
year term if it is still maintaining such cafeteria services for its own
benefit.

         Section 7.04 Security Service.

         Attached as EXHIBIT D is a description of the security services that
Subtenant has asked Sublandlord to provide and which Sublandlord is willing to
provide (the "Security Services"). Subtenant has agreed to pay to Sublandlord on
monthly basis, an amount to subsidize Sublandlord's projected costs associated
with providing the Security Services as noted in EXHIBIT D. (The subsidy may be
adjusted annually to reflect cost increases to Sublandlord in the provision of
such services.) Costs for any additional services or any upgrade or modification
to the Security Services shall be provided at a reasonable cost that is agreed
upon by the Parties. Sublandlord will provide the Security Services to Subtenant
for the Term of this Lease Agreement, provided, however, Subtenant may terminate
the delivery or receipt of Security Services by providing at least one hundred
(180) days advance written notice.

ARTICLE VIII. ENVIRONMENTAL MATTERS

         Section 8.01 Definitions

         The terms set forth below shall have the following meanings:

         "Environment" means all air, surface water, groundwater, surface and
subsurface soil, fish, wildlife, biota, flora, wetlands and all other natural
resources.

         "Environmental Claims" mean any and all actions, suits, orders, claims,
liens, notices, investigations, proceedings or complaints, whether any of the
foregoing are administrative, judicial or otherwise, related to any
Environmental Law that have been brought, issued, asserted or alleged by: i) a
federal, state or local agency or body or a citizen or citizen group for
compliance, injunctive relief, damages (including but not limited to natural
resource damages), penalties, removal, response, remedial or other action
pursuant to an Environmental Law related to the presence of a Hazardous
Substance, contamination, pollution or a condition at, in, under, on or about
the Demised Premises or related to waste or material sent for treatment,
storage, recycling or disposal from the Demised Premises; and/or ii) a third
party seeking damages and/or injunctive relief related to actual or alleged
personal injury, medical monitoring, wrongful death, and/or property damage
resulting from construction, operation or maintenance of one or more of the
Assets and/or the Release or threatened Release of a Hazardous Substance, or
contamination, pollution or a condition, at, in, under, on or about the Demised
Premises or for a violation of an Environmental Law.

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<PAGE>

         "Environmental Laws" means all current and future federal, state and
local laws, statutes, ordinances, codes, permits, licenses, orders, approvals,
rules, regulations and common law relating to the protection of the Environment
and/or governing the use, handling, generation, treatment, recycling, storage,
manufacture, transportation or disposal of Hazardous Substances, including
without limitation, as amended: the Comprehensive Environmental Response,
Compensation and Liability Act, 42 U.S.C. Sections 9601 et seq.; the Resource
Conservation and Recovery Act, 42 U.S.C. Sections 6901 et seq.; the Federal
Water Pollution Control Act, 33 U.S.C. Sections 1251 et seq.; the Toxic
Substances Control Act, 15 U.S.C. Sections 2601 et seq.; the Emergency Planning
and Community Right-To-Know Act, 42 U.S.C. Sections 11001 et seq.; all
comparable State and local laws, statutes, codes and ordinances; and all rules
and regulations promulgated under any of the foregoing.

         "Hazardous Substances" means, without regard to amount or
concentration, petroleum, petroleum distillates, petroleum products, mineral
oil, natural gas, radioactive materials and substances, asbestos,
polychlorinated biphenyls ("PCBs"), radon and any materials or substances which
are regulated under or defined as, or otherwise included in the definition of,
"hazardous substances", "hazardous materials", "solid wastes", "waste water",
"hazardous wastes", "toxic substances", "toxic pollutants", "regulated
materials", "pollutants" or "contaminants" in any applicable Environmental Law,
and constituents and degradation products of any of the foregoing.

         "Release" means any spilling, leaking, pumping, pouring, emitting,
emptying, discharging, injecting, escaping, migrating, leaching, dumping or
disposing of a Hazardous Substance into the environment, including without
limitation, the abandonment, discarding, burying or disposal of barrels,
containers and other receptacles containing any Hazardous Substances.

         Section 8.02 Environmental Requirements/Hazardous Materials

         A.       Subtenant's use and occupancy of the Demised Premises shall at
all times be in strict compliance with all federal, state and local laws, rules,
regulations, orders, guidelines, ordinances and standards, as they may now or
hereafter exist, relating in any way to the protection of human health, safety,
the environment and natural resources.

         B.       If Subtenant becomes aware of a Release (as defined under
Environmental Laws), threat of a Release or the presence of any Hazardous
Substance (as defined under Environmental Laws) causing contamination of the
Demised Premises or surrounding areas or adjacent properties or otherwise posing
an imminent risk to human health and safety, Subtenant shall immediately notify
Sublandlord in writing thereof. Subtenant shall take all necessary steps to
ensure that any future activities by Subtenant do not exacerbate the Release,
threat of a Release or the presence of Hazardous Substance. Subtenant shall
remedy and mitigate all threats to public health or the environment relating to
such presence or Release, or threat thereof to the extent such Release, threat
of Release or presence of Hazardous Substances is caused by Subtenant or its
Affiliates, agents, employees, contractors, representatives, sublessees or
invitees (collectively, "Subtenant Parties"). If Subtenant shall fail to take
the measures described above, or shall fail to comply with the requirements of
any Environmental Laws, Sublandlord may give such notice and/or cause such work
to be performed at the Demised Premises or surrounding areas, and/or take any
and all other actions as Sublandlord shall deem necessary to restore the Demised
Premises or surrounding areas to the condition in which they existed as of the
date of this Sublease, provided that Sublandlord gives Subtenant ten (10) days
advance written notice of Sublandlord's intent to take such actions (except in
cases of emergency where no such notice shall be required) and Subtenant has not
commenced

                                       10
<PAGE>

such actions and is not diligently prosecuting such actions to completion. Such
actions by Sublandlord shall not affect Subtenant's obligation under this
Sublease.

         C.       Subtenant shall not allow the Demised Premises to be used for
the storing or handling of explosive, radioactive, dangerous, or offensive
materials, or any Hazardous Substance during the term hereof except such
materials as used or produced by Subtenant in the ordinary course of its
business and which are utilized, stored and handled in accordance with
applicable state and federal law. The Subtenant shall, in conducting any
activity or business on the Demised Premises, comply with all Environmental
Laws. The Subtenant shall, if requested by Sublandlord, notify Sublandlord in
writing, no more often than once every calendar year during the Term, that it
has complied with all Environmental Laws.

         D.       Subtenant shall assume full control over the resolution of any
claim, litigation, expense, fine or loss attributable to its breach of this
paragraph (the "Environmental Matter") with the full cooperation of the
Sublandlord. Subtenant shall diligently proceed with the resolution of such
Environmental Matter in good faith.

         E.       Subtenant shall be responsible for all costs incurred in
complying with Environmental Laws applicable to its use and operations on the
Demised Premises and any remedial costs arising from or relating to its breach
of the obligations contained in this Section 8.

         F.       The indemnities and obligations of Sublandlord and Subtenant
contained in this Article VIII shall survive the expiration or earlier
termination of the Sublease.

         Section 8.03 Indemnification by Sublandlord.

         A.       Upon and after the Commencement Date, Sublandlord shall, and
hereby does agree, at its sole cost and expense, to defend, indemnify, protect
and save harmless Subtenant, its directors, officers, employees, successors and
assigns (collectively "Subtenant's Group") from and against any and all damages,
losses, liabilities, obligations, penalties, claims, litigation, demands,
defenses, judgments, suits, actions, proceedings, costs, disbursements and/or
expenses (including without limitation, reasonable attorneys', expert witness
and consultant fees and disbursements, whether incurred as the result of a third
party claim or a claim to enforce this Agreement) (collectively "Loss and
Expense") which may be imposed upon, incurred by or asserted or awarded against
any member or all of Subtenant's Group resulting from or arising out of any of
the following:

                  1.       Sublandlord's noncompliance with, or violation of,
any Environmental Law or this Article 8 with regard to the Demised Premises.

                  2.       Sublandlord's continued investigation, monitoring
and/or remediation of a Hazardous Substance, contamination, pollution or other
environmental condition existing at the Demised Premises prior to or as of the
Commencement Date.

                  3.       Any Environmental Claim under Environmental Laws
currently in effect or which come into effect after the Commencement Date,
related to the presence of a Hazardous Substance, Release, contamination,
pollution or other environmental condition existing at the Demised Premises
prior to or as of the Commencement Date or wastes or materials sent from the
Demised Premises prior to or as of the Commencement Date, even if such
Environmental Claim is not asserted until after the Commencement Date.

                                       11
<PAGE>

                  4.       Any Release of a Hazardous Substance at, in, on,
under or about the Demised Premises prior to or as of the Commencement Date,
even if such Release is not discovered until after the Commencement Date,
including the extent to which such Release continues on and after the
Commencement Date, and any Hazardous Substances which migrate through the soils
or groundwater of the Demised Premises at any time during the Term, except to
the extent the existence of such Hazardous Substances is caused by any Subtenant
Parties.

         Section 8.04 Indemnification by Subtenant

         A.       Upon and after the Commencement Date, Subtenant shall, and
hereby does agree, at its sole cost and expense, to defend, indemnify, protect
and save harmless Sublandlord, its directors, officers, employees, successors
and assigns (collectively "Sublandlord's Group") forever (except as otherwise
provided below) from and against any and all Loss and Expense which may be
imposed upon, incurred by or asserted or awarded against any member or all of
Sublandlord's Group resulting from or arising out of any of the following(to the
extent not a liability of Sublandlord under Section 8.02 hereof or under the
Purchase Agreement):

                  1.       Subtenant's noncompliance with, or violation of, any
Environmental Law or this Article 8, with regard to its use of the Demised
Premises.

                  2.       Any Environmental Claim under Environmental Laws
currently in effect or which come into effect after the Commencement Date,
related to the presence of a Hazardous Substance, contamination, pollution or
other condition which is (i) created or which wholly arises at the Demised
Premises during the Term or wastes or materials sent from the Demised Premises
during the Term and (ii) caused by the actions of, or failure to act by, the
Subtenant.

                  3.       Any Release of a Hazardous Substance at, in, on,
under or about the Demised Premises which Release (i) occurs during the Term and
(ii) is caused by the actions of, or failure to act by, the Subtenant, but
excluding any Releases of a Hazardous Substance which occurred prior to or as of
the Commencement Date.

                  4.       Any affirmative action by Subtenant which increases,
enhances or exacerbates a prior or existing Release about which Subtenant had
prior knowledge, to the extent of such enhancement or exacerbation.

ARTICLE IX. TRANSFER OF INTEREST BY SUBTENANT

         Section 9.01 Assignment or Sublet

         A.       Subtenant shall not, without obtaining Sublandlord's and
SCIDA's prior written consent, which consent shall not be unreasonably withheld
or delayed, and if not granted or denied within twenty (20) days, shall be
deemed granted: (i) assign, delegate, sublet, convey, mortgage, pledge, encumber
or otherwise transfer (voluntarily or involuntarily) Subtenant's interest in
this Sublease or the Demised Premises or any part thereof; (ii) allow any
transfer of or any lien upon Subtenant's interest in this Sublease or the
Demised Premises or any part thereof; or (iii) permit the use or occupancy of
the Demised Premises or any part thereof by any person or entity other than
Subtenant.

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<PAGE>

         B.       If, without the consent of Sublandlord and SCIDA, this
Sublease is assigned or delegated, or the Demised Premises or any part thereof
is sublet or occupied by anyone other than Subtenant, Sublandlord may elect to
treat such assignment, sublet, occupation or change of control as void under the
terms of this Sublease and treat Subtenant as in material breach of this
Sublease.

         C.       Subtenant shall defend, indemnify and hold harmless
Sublandlord against any and all Loss and Expense arising from any claims by a
proposed or putative assignee or sub-subtenant or by any broker or other person
claiming commission or similar compensation in connection with a proposed or
putative assignment or sublease.

ARTICLE X.        TRANSFER OF INTEREST OF SUBLANDLORD

         Section 10.01 Sale of Demised Premises

         In the event of a sale or conveyance by Sublandlord of its interest in
the Demised Premises, the same shall operate to release Sublandlord from any
future liability upon any of the covenants or conditions herein contained in
favor of Subtenant and, in such event, Subtenant agrees to look solely to the
successor in interest of Sublandlord in and to this Sublease for the performance
of the covenants and conditions herein contained in favor of Subtenant.

ARTICLE XI. DESTRUCTION AND INSURANCE

         Section 11.01 Rent Abatement; Sublease Termination.

         A.       If the Demised Premises and/or access thereto shall be
partially or totally damaged or destroyed by fire or any other insured casualty
(a "Casualty"), Sublandlord may, but shall not be obligated to, subject to
Subtenant's rights under Paragraph (c) hereof, promptly repair the damage and
restore and rebuild the Demised Premises and/or access thereto as nearly as may
be reasonably practical to its condition and character immediately prior to such
damage or destruction, with reasonable diligence after Sublandlord receives
notice of the Casualty.

         B.       If the Demised Premises and/or access thereto shall be
partially or totally damaged or destroyed by a Casualty, the Rent shall be
abated to the extent that the Demised Premises or Equipment shall have been
rendered unusable by Subtenant for its purposes from the date of such damage
until the Demised Premises shall be substantially repaired, restored or rebuilt.
Should Subtenant reoccupy a portion of the Demised Premises for the conduct of
its business during the period that the repair, restoration or rebuilding is in
progress and prior to the date that the same are made completely tenantable, all
Rent allocable to such portion (including, without limitation, all Additional
Rent) shall be payable by Subtenant from the date of such occupancy to the date
the Demised Premises are made tenantable.

         C.       In the case of a Casualty, either party may, at its option,
terminate this Sublease and the term and estate hereby granted, by giving a
written termination notice to the other party within sixty (60) days after
notifying party has actual knowledge of the Casualty; provided, however, that
Subtenant shall have up to one hundred twenty (120) days after the termination
notice is given within which to fully vacate the Demised Premises.

                                       13
<PAGE>

         D.       The provisions of this Section 11.01 shall be considered an
express agreement governing any case of damage or destruction of the Demised
Premises by a Casualty.

         Section 11.02 Waiver of Subrogation.

         A.       Notwithstanding anything to the contrary contained herein,
Sublandlord and Subtenant each hereby releases the other, its officers,
directors, employees and agents, from liability or responsibility (to the other
or anyone claiming through or under them by way of subrogation or otherwise) for
any loss or damage to property which is required to be covered by the insurance
policies referenced in Section 11.03, even if such fire or other casualty shall
have been caused by the fault or negligence of the other party, or anyone for
whom such party may be responsible. However, this release shall apply only to
loss or damage actually recovered from the insurance company (or which would
have been recoverable had the required policy been maintained), plus any
deductible amounts under such policies.

         B.       Sublandlord and Subtenant each agree that any fire and
extended coverage insurance policies carried by each of them respectively and
covering the Demised Premises or their contents will include a clause or
endorsement as set forth in Subsection 11.02.A above.

         Section 11.03 Casualty Insurance.

         A.       Sublandlord shall, at all times during the Term, maintain in
effect a policy or policies of all risk insurance covering the Buildings in an
amount equal to one hundred percent (100%) of the full replacement cost thereof,
subject to reimbursement of the premiums for such insurance by Tenant pursuant
to Section 4.04 hereof. Subtenant shall comply with any reasonable
recommendations made by Sublandlord's insurance carrier.

         B.       Subtenant shall, at all times during the Term and at its sole
expense, maintain all risk insurance covering Subtenant's personal property,
including inventory, in an amount equal to one hundred percent (100%) of the
full replacement cost thereof.

         Section 11.04 Liability Insurance.

         Subtenant shall, at all times during the Term and at its sole expense,
maintain a Commercial General Liability Insurance Policy on an occurrence basis
with a minimum limit of liability in the amount of $[*]. Subtenant will name
Sublandlord as an additional insured on Subtenant's Commercial General Liability
Insurance Policy and Subtenant's Commercial General Liability Insurance Policy
will be a primary policy and not contributing with, or in excess of, any
coverage that Sublandlord may carry.

[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                                       14
<PAGE>

ARTICLE XII. CONDEMNATION

         A.       If all the Demised Premises are taken by eminent domain (a
"Taking"), this Sublease shall terminate when Subtenant is required to vacate
the Demised Premises.

         B.       If a partial Taking results in so much of the Demised Premises
being taken as to render the remaining portion of the Demised Premises
unsuitable for Subtenant's continued use and occupancy as reasonably determined
by Subtenant (hereinafter for the purposes of this Article XII "Material Partial
Taking"), then Subtenant may, by delivering written notice to Sublandlord within
sixty (60) days after Subtenant receives written notice of the Material Partial
Taking, elect to terminate this Sublease as of the date Subtenant is required to
vacate the portion of the Demised Premises so taken.

         C.       If a partial Taking does not result in a Material Partial
Taking, then this Sublease shall not be terminated and Sublandlord shall, to the
extent of any Taking proceeds actually received by Sublandlord, and to the
extent reasonably practical, proceed with all reasonable dispatch to do such
work that may be reasonably required to restore what remains of the Demised
Premises as nearly as may be to its condition prior to the Taking.

         D.       Sublandlord shall be entitled to any and all proceeds
resulting from any Taking with respect to Sublandlord's interest in the Demised
Premises.

ARTICLE XIII. INDEMNITY, LIABILITY AND INSURANCE

         Section 13.01 Subtenant's Indemnity.

         Subtenant hereby indemnifies and agrees to save harmless Sublandlord
from and against any and all Loss and Expense which:

         A.       Results from any default, breach, violation or non-performance
of this Sublease or any provision of this Sublease by Subtenant.

         B.       Arises from injury to person or property or loss of life
sustained in or about the Demised Premises relating to the use or occupancy of
the Demised Premises by Subtenant, or any Subtenant Parties.

         C.       Results from the negligent or improper construction of any
Alterations made by or at the direction of Subtenant or the failure of Subtenant
or any Subtenant Parties to obtain any necessary permit, consent or other
approval in connection with the making of any Alterations.

         D.       Relates to any matter described in Article XIII.

         Subtenant shall defend any actions, suits and proceedings which may be
brought against Sublandlord with respect to the foregoing or in which
Sublandlord may be impleaded. Subtenant shall pay, satisfy and discharge any
judgments, orders and decrees, which may be recovered against Sublandlord in
connection with the foregoing. Subtenant's indemnification liability under this
Sublease shall survive the expiration or other termination of this Sublease.

                                       15
<PAGE>

         Section 13.02 Sublandlord's Indemnity.

         Sublandlord hereby indemnifies and agrees to save harmless Subtenant
from and against any and all Loss and Expense which:

         A.       Results from any default, breach, violation or non-performance
of this Sublease or any provision of this Sublease by Sublandlord.

         B.       Arises from injury to person or property or loss of life
sustained in or about the Demised Premises relating to the use or occupancy of
the Demised Premises by Sublandlord, or Sublandlord's agents, contractors or
employees.

         C.       Results from the negligent or improper construction of any
Alterations made by or at the direction of Sublandlord or the failure of
Sublandlord to obtain any necessary permit, consent or other approval in
connection with the making of any Alterations.

         D.       Relates to any matter described in Section 8.02.

         Sublandlord shall defend any actions, suits and proceedings, which may
be brought against Subtenant with respect to the foregoing or in which Subtenant
may be impleaded. Sublandlord shall pay, satisfy and discharge any judgments,
orders and decrees, which may be recovered against Subtenant in connection with
the foregoing. Sublandlord's indemnification liability under this Sublease shall
survive the expiration or other termination of this Sublease.

         Notwithstanding anything to the contrary in this Section 13.02, except
to the extent of the gross negligence or willful misconduct of Sublandlord, or
any breach by Sublandlord of its obligations under this Sublease, Sublandlord
shall not be responsible or liable to Subtenant, or to those claiming by,
through or under Subtenant, for any loss or damage which may be occasioned by or
through the acts or omissions of persons occupying space adjoining the Premises
or any part of the premises adjacent to or connecting with the premises, or
otherwise, or for any loss or damage resulting to Subtenant, or those claiming
by, through or under Subtenant, or its property, from the breaking, bursting,
stoppage or leaking of electrical cable and wires, or water, gas, sewer or steam
pipes. To the maximum extent permitted by law, Subtenant agrees to use and
occupy the Premises at Subtenant's own risk.

         Section 13.03 General Provisions with Respect to Insurance.

         A.       Upon the execution of this Sublease and no less than five (5)
business days before any insurance policy which Subtenant is required to carry
shall expire, Subtenant shall deliver to Sublandlord certificates for all
insurance which Subtenant is required to carry under the terms of this Sublease.
The renewal or replacement policy or certificate shall be delivered by Subtenant
to Sublandlord by certified mail, return receipt requested. If Subtenant fails
to give Sublandlord a copy of any required certificate of insurance within ten
(10) business days after written notice and demand therefore is given by
Sublandlord to Subtenant, in addition to the remedies provided in Article XV
below, Sublandlord may obtain and pay for that insurance coverage, in which
event the cost of such insurance coverage, together with interest at the
Interest Rate shall be due and payable by Subtenant as Additional Rent
immediately upon demand.

         B.       All insurance policies required to be carried under this
Sublease by or on behalf of either party (i) shall be issued by insurance
companies licensed to do business in the State of New

                                       16
<PAGE>

York, and maintaining during the policy term a "General Policyholders Rating" of
at least A-, as set forth in the most current issue of "Best's Insurance Guide"
and (ii) shall provide that (and any certificate evidencing the existence of any
insurance policies, shall certify that) unless Sublandlord shall have been given
thirty (30) days' written notice of any cancellation, the insurance shall not be
canceled and shall continue in full force and effect.

ARTICLE XIV. COVENANT OF QUIET ENJOYMENT

         Sublandlord covenants that provided a "Default" (as defined in Article
XV below) has not occurred under this Sublease, Subtenant shall at all times
during the Sublease Term peaceably and quietly have, hold and enjoy the Demised
Premises, without any interruption or disturbance.

ARTICLE XV. DEFAULTS & REMEDIES

         Section 15.01 Defaults.

         Any of the following shall constitute a "Default" under this Sublease:

         A.       Subtenant shall fail to pay any installment of Rent when the
same shall be due and payable, and such failure shall continue for a period of
ten (10) days after receipt by Subtenant of written notice thereof from
Sublandlord; or

         B.       If Subtenant shall fail to maintain the insurance coverage
required by this Sublease or Subtenant shall fail to timely deliver a copy of
any certificate of insurance required hereunder and such default shall continue
for a period of ten business (10) days after written notice is given by
Sublandlord to Subtenant specifying such default; or default shall be made with
respect to any assignment of this Sublease or subletting of the Demised Premises
as provided in Article IX hereof; or default shall be made with respect to
Subtenant's obligation to make certifications as provided in Article XVI
hereof(such notice provided herein constituting a second notice in addition to
that provided for in Article XVI); or

         C.       Subtenant shall fail to perform any of the other covenants,
conditions and agreements herein contained on Subtenant's part to be performed
and such failure shall continue for a period of thirty (30) days after receipt
by Subtenant of notice in writing from Sublandlord specifying in detail the
nature of such failure, except that if within the thirty (30) day period
Subtenant commences and thereafter proceeds diligently to remedy the violation
or failure within a reasonable period of time, Subtenant shall not be in default
hereunder.

         D.       Subtenant shall file a voluntary petition in bankruptcy or
shall be adjudicated a bankrupt or insolvent or shall file any petition or
answer seeking any reorganization, arrangement, composition, readjustment,
liquidation, dissolution or similar relief under the present or any future
federal bankruptcy act or any other present or future applicable federal, state
or other stature or law, or shall seek or consent to or acquiesce in the
appointment of any trustee, receiver or liquidator of Subtenant or of all or any
substantial part of its properties or of the Demised Premises; or

         E.       If within sixty (60) days after the commencement of any
proceeding against Subtenant seeking any reorganization, arrangement
composition, readjustment, liquidation, dissolution or similar relief under the
present or any future federal bankruptcy act or any other present or future
applicable

                                       17
<PAGE>

federal, state or other statute or law, such proceeding shall not have been
dismissed, or if, within sixty (60) days after the appointment, without the
consent or acquiescence of Subtenant of any trustee, receiver or liquidator of
Subtenant, or of all or any substantial part of its properties or of the Demised
Premises, such appointment shall not have been vacated or stayed on appeal or
otherwise, or if, within sixty (60) days after the expiration of any such stay,
such appointment shall not have been vacated.

         F.       The abandonment of the Demised Premises by Subtenant at any
time following delivery of possession of the Demised Premises to Subtenant.

         Section 15.02 Sublandlord Remedies.

         A.       After the occurrence of a Default, Sublandlord may, at its
option, give Subtenant a notice of election to end the Term upon a date
specified in such notice, which date shall not be less than five (5) days after
the date such notice is given to Subtenant, and upon the date specified in such
notice, this Sublease and the Term shall cease and any and all other right,
title and interest of Subtenant hereunder shall likewise cease without further
notice or lapse of time, as fully and with like effect as if the entire Term had
elapsed, but Subtenant shall continue to be liable to Sublandlord as hereinafter
provided.

         B.       Upon any termination of this Sublease pursuant to Section
15.02(A) or at any time thereafter, Sublandlord may, in addition to and without
prejudice to any other rights and remedies Sublandlord shall have at law or in
equity, re-enter the Demised Premises and recover possession thereof and
dispossess any or all occupants of the Demised Premises in the manner prescribed
by the statute relating to summary proceedings, or similar statutes; but
Subtenant in such case shall remain liable to Sublandlord as hereinafter
provided.

         C.       Upon any termination of this Sublease pursuant to Section
15.02(A), (i) the Rent shall become due thereupon and be paid up to the time of
such reentry, expiration and/or dispossession; and (ii) Subtenant or the legal
representatives of Subtenant shall also pay Sublandlord as damages for the
failure of Subtenant to observe and perform Subtenant's covenants herein
contained, any deficiency between the Rent hereby reserved and/or covenanted to
be paid and the net amount, if any, of the rents collected on account of any
sublease or subleases of the Demised Premises entered into by Sublandlord for
each month of the period which would otherwise have constituted the balance of
the Term. When determining the balance of the Term for the purposes of this
Section 15.02(c), it will be assumed that Subtenant would, on the date the
Sublease is terminated by Sublandlord, have exercised its election to terminate
or not renew the Sublease pursuant to Article III. Any such damages shall be
paid in monthly installments by Subtenant on the first day of each month, and
any suit brought to collect the amount of the deficiency for any month shall not
prejudice in any way the fight of Sublandlord to collect the deficiency for any
subsequent month by a similar proceeding.

         D.       In the event of the occurrence of a Default, or a threatened
breach by Subtenant of any of the agreements, terms, covenants or conditions of
this Sublease on Subtenant's part to be performed, Sublandlord shall have the
right to enjoin such Default or threatened breach by Subtenant.

         E.       If Subtenant shall fail to perform or observe any term or
condition in this Sublease, and shall not cure such failure within ten (10)
business days after Sublandlord notifies Subtenant of such failure or shall have
not commenced a cure during such time period and be diligently prosecuting such
cure to completion, Sublandlord may, but shall not be obligated to, cure such
failure by Subtenant under this Sublease. Whenever Sublandlord so elects to
cure, all costs and expenses incurred by

                                       18
<PAGE>

Sublandlord, including reasonable attorneys' fees, shall be considered Rent
hereunder and shall be paid by Subtenant to Sublandlord within five (5) days of
demand, together with interest at the Interest Rate.

         F.       No acceptance by Sublandlord of a lesser sum than the Rent, or
any charge then due shall be deemed to be other than on account of the earliest
installment of such Rent or charge due, nor shall any endorsement or statement
on any check or any letter accompanying any check or payment as Rent or other
charge be deemed as an accord and satisfaction, and Sublandlord may accept such
check or payment without prejudice to Sublandlord's right to recover the balance
of such installment or pursue any other remedy in this Sublease provided.

         G.       Any failure of Sublandlord to complain of any act or omission
on the part of Subtenant, no matter how long the same may continue, shall not be
deemed to be a waiver by Sublandlord of any of its rights hereunder. No waiver
by Sublandlord at any time, express or implied, of any breach of any provision
of this Sublease shall be deemed a waiver of a breach of any other provision of
this Sublease or a consent to any subsequent breach of the same or any other
provision. No covenant term or condition of this Sublease shall be deemed to
have been waived by Sublandlord, unless such waiver is acknowledged in writing
by Sublandlord.

         H.       Each right and remedy provided for in this Sublease shall be
cumulative and shall be in addition to every other right or remedy provided for
in this Sublease or now or hereafter existing at law or in equity or by statute
or otherwise, and the exercise or beginning of the exercise by Sublandlord of
any one or more of the rights or remedies provided for in this Sublease, or now
or hereafter existing in law or in equity, shall not preclude the simultaneous
or later exercise by Sublandlord of any or all other available rights or
remedies Sublandlord may elect. In no event shall either party be liable to the
other for consequential or incidental damages. In the event of any default of
Subtenant hereunder, Sublandlord shall act reasonably to mitigate its damages.

         I.       In the event Subtenant shall default more than two times by
failing to pay Rent when due, the five percent (5%) late fee referenced in
Section 4.06 shall be increased to ten percent (10%) to compensate Sublandlord
for additional administrative costs related to multiple breaches of this
Sublease by Subtenant.

         J.       If a judicial remedy is necessary to enforce or interpret any
provision of the Sublease, the prevailing party shall be entitled to reasonable
attorneys' fees, costs and other expenses, in addition to any other relief to
which is available under the terms of this Sublease.

         Section 15.03 Sublandlord Default.

         In the event Sublandlord fails to perform any of its obligations under
this Sublease and (except in case of emergency posing an immediate threat to
persons or property, in which case no prior notice shall be required) fails to
cure such default within thirty (30) days after written notice from Subtenant
specifying the nature of such default where such default could reasonably be
cured within said thirty (30) day period, or fails to commence such cure within
said thirty (30) day period and thereafter continuously with due diligence
prosecute such cure to completion where such default could not reasonably be
cured within said thirty (30) day period, then Subtenant may: (i) proceed in
equity or at law to compel Sublandlord to perform its obligations and/or to
recover damages proximately caused by such failure to perform (except to the
extent Subtenant has waived its right to damages resulting from injury to person
or damage to property as provided herein); or (ii) cure any

                                       19
<PAGE>

default of Sublandlord at Sublandlord's cost. If Subtenant at any time by reason
of Sublandlord's default reasonably pays any sum or does any act that requires
the payment of any sum, the sum paid by Subtenant shall be immediately due from
Sublandlord to Subtenant at the time the sum is paid. Any and all rights and
remedies herein created for Subtenant shall be cumulative and use of one remedy
shall not be taken to exclude or waive the right to the use of another and
Subtenant shall have the remedies available to Subtenant under applicable law.

ARTICLE XVI. ESTOPPEL CERTIFICATE

         At any time within ten business (10) days after request by Sublandlord
or Subtenant ("Requesting Party"), by written instrument, duly executed and
acknowledged, the other party ("Certifying Party") shall certify to the
Requesting Party, any purchaser, lender, potential subtenant, potential assignee
of this Sublease or any other person specified by the Requesting Party, the
following:

         A.       Whether this Sublease is in full force and effect and has not
been assigned, modified, supplemented or amended (except to the extent such
writings are set forth);

         B.       Whether all conditions under this Sublease required to be
satisfied by the Requesting Party have been satisfied (or stating those that
have not been satisfied);

         C.       That there are no defenses or offsets against the enforcement
of this Sublease by the Requesting Party (or stating those claimed by the
Certifying Party);

         D.       The amount of advance rental, if any, paid by Subtenant and
the date to which such rental has been paid; and

         E.       Such other terms, covenants and conditions which the
Requesting Party, any proposed sub-subtenant or any other party requesting the
certificate shall reasonably require.

ARTICLE XVII. RIGHT OF ACCESS

         Section 17.01 Sublandlord's Rights.

         Sublandlord shall be entitled to:

         A.       Upon one (1) day advance oral notice, inspect the Demised
Premises during business hours after notice to Subtenant and with no notice in
the event of an emergency;

         B.       Upon one (1) day advance oral notice, show, through its
agents, employees and/or other representatives, the Demised Premises during
normal business hours to persons wishing to purchase the same, and, after an
Event of Default by Subtenant or either party's notice of intent not to renew
this Sublease, to persons wishing to rent the same;

         C.       Through its agents, employees and/or other representatives, to
place notices on the front of the Demised Premises or any part thereof
reasonably acceptable to Subtenant, offering the Demised Premises for sale, and,
after an Event of Default by Subtenant or either party's notice of intent not to
renew this Sublease, for rent; and

                                       20
<PAGE>

         D.       Inspect the Demised Premises at will if Subtenant has vacated
and abandoned the Demised Premises.

         E.       Access to and continued use of the Demised Premises, at any
time without notice, for the purpose of repairing Sublandlord's equipment
identified on EXHIBIT A-3. Sublandlord shall provide Subtenant one (1) day
advance oral notice prior to inspections and routine maintenance of such
equipment. Sublandlord shall use its best efforts to minimize disruption to
Subtenant's operations during such access.

         Section 17.02 Sublandlord's Covenants.

         If Sublandlord enters the Demised Premises, Sublandlord shall do so
with due regard for the business being conducted in the Demised Premises by
Subtenant. No entry by Sublandlord shall unreasonably interfere with the conduct
of Subtenant's business operations. During any entry in the Demised Premises,
Sublandlord shall comply with all reasonable security and health and safety
requirements of Subtenant.

ARTICLE XVIII. PROVISIONS REGARDING MASTER LEASE

         Section 18.01 Subject to Master Lease.

         A.       This Sublease shall be subject and subordinate to the terms of
the Master Lease. Subtenant affirmatively agrees it shall not violate any term
or condition of the Master Lease or the PILOT Agreement or any other document or
instrument executed in connection with SCIDA.

         B.       Sublandlord agrees to keep the Master Lease in full force and
effect for the benefit of Subtenant, except with respect to (i) a mutual
agreement of the Subtenant and Sublandlord to terminate this Sublease (or
terminate the Master Lease and enter in to a direct lease) and (ii)
Sublandlord's termination of this Sublease in accordance with the terms and
conditions of this Sublease.

         C.       The subleasing of the Demised Premises shall in no way relieve
Sublandlord from its obligations under the Master Lease or PILOT Agreement; and
SCIDA's Unassigned Right under the Master Lease shall remain in full force and
effect.

         Section 18.02 Conflict with Master Lease.

         In the event of any conflict between the terms of this Sublease and the
terms of the Master Lease, as between Sublandlord and Subtenant only, the terms
of this Sublease shall prevail.

ARTICLE XIX. INTERPRETATION, NOTICE, MISCELLANEOUS

         Section 19.01 Interpretation.

         A.       If any provision of this Sublease or the application thereof
to any person or circumstance shall to any extent be invalid or unenforceable,
the remainder of this Sublease, or the application of such provision to persons
or circumstances other than those to which it is invalid or

                                       21
<PAGE>

unenforceable, shall not be affected thereby, and each provision of this
Sublease shall be valid and be enforced to the fullest extent permitted by law.

         B.       The captions and headings used throughout this Sublease are
for convenience of reference only and shall not affect the interpretation of
this Sublease.

         C.       This Sublease may be executed in several counterparts; but the
counterparts shall constitute but one and the same instrument.

         D.       Wherever a requirement is imposed on any party hereto, it
shall be deemed that such party shall be required to perform such requirement at
its own expense unless it is specifically otherwise provided herein.

         E.       The singular includes the plural and the plural includes the
singular.

         F.       All exhibits referred to in this Sublease are attached to this
Sublease and are considered part of this Sublease.

         Section 19.02 Construing Various Words and Phrases.

         A.       Wherever it is provided herein that a party may perform an act
or do anything, it shall be construed that the party may, but shall not be
obligated to, so perform or so do.

         B.       The following words and phrases shall be construed as follows:

                  1.       "At any time" shall be construed as, "at any time or
from time to time".

                  2.       "Any" shall be construed as "any and all".

                  3.       "Including" shall be construed as "including but not
limited to".

         Section 19.03 Entire Agreement.

         This Sublease contains the entire agreement between the parties with
respect to its subject matter and cannot be changed, modified or amended unless
such change, modification or amendment is in writing and executed by the party
against which the enforcement of the change, modification or amendment is
sought.

         Section 19.04 Communications.

         No notice, request, consent, approval, waiver or other communication
under this Sublease shall be effective unless it is in writing and is mailed by
registered or certified mail, return receipt requested, or sent by facsimile
with confirmation of receipt, or delivered personally, including by reputable
overnight courier, addressed:

         A.       If to Sublandlord, to the address designated as Sublandlord's
Notice Address, or such other address as Sublandlord designates by giving notice
thereof to Subtenant; and

         B.       If to Subtenant, to the address designated as Subtenant's
Notice Address, or such other address as Subtenant shall designate by giving
notice thereof to Sublandlord.

                                       22
<PAGE>

         C.       Sublandlord's Notice Addresses:

                  Corning Property Management Corporation
                  c/o Corning Incorporated
                  Attn.: Secretary
                  One Riverfront Plaza
                  Corning, New York 14831
                  Facsimile Number: 607-974-8262

                  Corning Property Management Corporation
                  c/o Corning Incorporated
                  Attn: President
                  One Riverfront Plaza
                  MP-BH-05
                  Corning, New York 14831
                  Facsimile Number: 607-248-1586

         D.       Subtenant's Notice Address:

                  Avanex Corporation
                  40919 Encyclopedia Circle
                  Fremont, CA 94538, USA
                  Attention: Chief Executive Officer
                  Facsimile Number: 510-897-4189

         E.       Steuben County Industrial Development Agency Notice Address:
                  7234 Rout 54 North
                  PO Box 393
                  Bath, New York 14810-0393

         Notices shall be delivered by hand or by United States certified or
registered mail, postage prepaid, return receipt requested, or by a nationally
recognized overnight air courier service. Notices shall be considered to have
been given upon the earlier to occur of actual receipt or refusal to accept
delivery.

         Section 19.05 Method of Payment.

         Except as herein otherwise expressly provided, all amounts payable
under this Sublease shall be payable in good funds of the United States of
America which at the time legal tender for public and private debts.

         Section 19.06 Successors and Assigns.

         Subject to the provisions hereof, this Sublease shall bind and inure to
the benefit of the parties and their respective successors, representatives,
heirs and assigns.

         Section 19.07 Responsibility of Subtenant.

         Any restriction on or requirement imposed upon Subtenant hereunder
shall be deemed to extend to Subtenant's subtenants, concessionaires and
licensees and it shall be Subtenant's

                                       23
<PAGE>

obligation to cause the foregoing persons to comply with such restriction or
requirement. Nothing contained in this Section 18.07 shall be deemed to
authorize any such subtenants, concessionaires or licensees except as provided
in Section 9.01.

         Section 19.08 Brokerage.

         Subtenant represents and warrants and it has not dealt with any broker
relating to this Sublease, and Subtenant agrees to indemnify and save
Sublandlord harmless from any claims made by any broker claiming to have dealt
with Subtenant. Sublandlord represents and warrants that it has not dealt with
any broker relating to this Sublease, and Sublandlord agrees to indemnify and
save Subtenant harmless from any claims made by any broker claiming to have
dealt with Sublandlord. The terms and provisions of this Section 18.08 shall
survive the expiration or other termination of this Sublease.

         Section 19.09 Applicable Law.

         This Sublease, and the rights and obligations of the parties hereto,
shall be interpreted and construed in accordance with the laws of the State of
New York.

         Section 19.10 Consent to Assignment.

         Pursuant to Section 6.3 of the Master Lease, this Sublease shall be
effective upon obtaining the written consent of SCIDA, and it is hereby
acknowledged by Sublandlord and Subtenant (by the execution of this Sublease)
that the giving of SCIDA's consent to this Sublease (i) shall not make SCIDA or
its agent, a party to this Sublease, (ii) shall not be deemed approval of any
improvements, if any, to be made or given in connection with this Sublease, and
(iii) shall in no way relieve Sublandlord from its obligations under the Master
Lease and PILOT Agreement.

                            [SIGNATURE PAGE FOLLOWS]

                                       24
<PAGE>

                  IN WITNESS WHEREOF, Sublandlord and Subtenant have caused this
Sublease to be executed by their duly authorized officers.

                                         SUBLANDLORD:

                                         CORNING PROPERTY MANAGEMENT
                                         CORPORATION

                                         By: /s/________________________________
                                         Its: Secretary

                                         SUBTENANT:

                                         AVANEX CORPORATION

                                         By: /s/ BRUCE POLLOCK
                                             -----------------------------------
                                         Its: Chief Financial Officer

                                       25
<PAGE>

                                   EXHIBIT A-1
                                LEGAL DESCRIPTION

ALL THAT TRACT OR PARCEL OF LAND situate in the Town of Erwin, County of Steuben
and State of New York; bounded and described as follows:

Beginning at a point on the southerly boundary of the lands conveyed to Corning
Enterprises, Inc. by deed recorded in the Liber 1046 of Deeds Page 527 (Schedule
32 therein), 820.71 feet easterly from the southwesterly corner of said
conveyance and the southeasterly corner of said conveyance and the southeasterly
corner of lands conveyed to Corning Glass Works by "Scudder" by deed recorded in
the Liber 792 of Deeds, Page 948;

Thence through the lands of Corning Enterprises, Inc. the following nine (9)
courses and distances:

     1.  N.22 degrees 00'29" W., a distance of 894.75 feet;

     2.  N.2 degrees 16'26" E., a distance of 667.16 feet to a point on the
         southerly boundary of a proposed roadway;

     3.  Easterly along said proposed roadway on a curve to the left with a
         radius of 603.00 feet an arc distance of 286.52 feet (producing a chord
         of N. 77 degrees 46'08" E., 283.83 feet) to a point of tangency;

     4.  N. 64 degrees 09'24" E., along said proposed roadway, 812.29 feet to a
         point on the westerly boundary of a proposed extension of Robert Dann
         Drive;

     5.  Thence S. 25 degrees 59'36" E., along the last mentioned highway, 32.13
         feet to a point of curvature;

     6.  Thence southeasterly along said proposed highway on a curve to the left
         with a radius of 812.50 feet, an arc distance of 464.90 feet (producing
         a chord of S. 42 degrees 14'08" E., 458.59 feet) to a point of
         tangency;

     7.  Thence S. 58 degrees 37'39" E. a distance of 428.58 feet to a point of
         curvature;

     8.  Thence southeasterly and southerly along a curve to the right with a
         radius of 687.50 feet, an arc distance of 778.63 feet (producing a
         chord of S. 26 degrees 10'56" E., 737.68 feet) to a point of tangency;

     9.  Thence S. 6 degrees 15'47" W. continuing along said proposed highway,
         722.86 feet to a point on said southerly boundary of lands of Corning
         Enterprises, Inc. and a northern boundary of other lands of Corning,
         Inc.;

     Thence N. 87 degrees 50'17" W., along the last mentioned boundary, 1635.58
     feet to the point or place of beginning;

     Being 69.987 acres of land, more or less.

                                       26
<PAGE>

                                   EXHIBIT A-2
                                DEMISED PREMISES

         The land described in Exhibit A-1 and the building and other
improvements located thereon.

                                       27
<PAGE>

                                   EXHIBIT A-3
                               EXCLUDED EQUIPMENT

                                       28
<PAGE>

                      THIS PAGE IS INTENTIONALLY LEFT BLANK

                                       1
<PAGE>

                                   Exhibit A-3
    Assets Owned by Sublandlord, Used by Subtenant (i.e., Excluded Equipment)

<TABLE>
<CAPTION>
                      ASSET                                  IN                                                         LTD
LOC  DEPT   CLASS      ID         ASSET DESCRIPTION        SERVICE  LIFE  P    CUSTODIAN  PROJECT ID   TAG        COST  DPR   NBV
---  ----  --------  ------  ----------------------------  -------  ----  --   ---------  ----------  ----------  ----  ---  -----
<S>  <C>   <C>       <C>     <C>                           <C>      <C>   <C>  <C>        <C>         <C>         <C>   <C>  <C>
[*]  [*]   AUDIOVIS   [*]    AUDITORIUM MICROPHONE           [*]     [*]  P                   [*]            [*]   [*]  [*]    -
[*]  [*]   AUDIOVIS   [*]    TARGET VISION SYSTEM            [*]     [*]  P        [*]        [*]            [*]   [*]  [*]   [*]
[*]  [*]   AUDIOVIS   [*]    ENVOY PROJECTION SCREEN         [*]     [*]  P        [*]        [*]            [*]   [*]  [*]   [*]
                             LUMA PROJECTION
[*]  [*]   AUDIOVIS   [*]    SCREEN                          [*]     [*]  P        [*]        [*]            [*]   [*]  [*]   [*]
                             CRESTRON TOUCH
[*]  [*]   AUDIOVIS   [*]    SCREEN                          [*]     [*]  P        [*]        [*]            [*]   [*]  [*]   [*]
[*]  [*]   BUILD      [*]    HVAC INSTALLATION               [*]     [*]  R        [*]        [*]     [*]          [*]  [*]   [*]
[*]  [*]   BUILD      [*]    RC3 PH II UNIT HEATER           [*]     [*]  P        [*]        [*]            [*]   [*]  [*]   [*]
[*]  [*]   BUILD      [*]    RC3 PH II VAV BOXES             [*]     [*]  P        [*]        [*]            [*]   [*]  [*]   [*]
[*]  [*]   BUILD      [*]    RC3 PH II OPERABLE WALLS        [*]     [*]  P        [*]        [*]            [*]   [*]  [*]   [*]
[*]  [*]   COMPEQ     [*]    INTERNAL CLOCK SYSTEM           [*]     [*]  P        [*]        [*]            [*]   [*]  [*]   [*]
[*]  [*]   COMPEQ     [*]    INTERNAL CLOCK SYSTEM ADD       [*]     [*]  P        [*]        [*]            [*]   [*]  [*]   [*]
[*]  [*]   COMPEQ     [*]    ATA DATA COLLECTION TERMIALS    [*]     [*]  P                                  [*]   [*]  [*]   [*]
[*]  [*]   ENVRCNTL   [*]    HAZARDOUS WASTE "BUILDING"      [*]     [*]  P                           [*]          [*]  [*]   -
[*]  [*]   FF         [*]    PTD:PATIO FURNITURE             [*]     [*]  P        [*]        [*]     [*]          [*]  [*]   [*]
[*]  [*]   FF         [*]    RECEPTION AREA                  [*]     [*]  P        [*]        [*]     [*]          [*]  [*]   [*]
                             REFRIGERATORS FOR
[*]  [*]   FF         [*]    CAFE                            [*]     [*]  P        [*]        [*]            [*]   [*]  [*]   [*]
[*]  [*]   FF         [*]    RC3 CAFE CONDIMENT COUNTER      [*]     [*]  P        [*]        [*]            [*]   [*]  [*]   [*]
[*]  [*]   FF         [*]    RC3 CAFE CASHIER COUNTER        [*]     [*]  P        [*]        [*]            [*]   [*]  [*]   [*]
[*]  [*]   FF         [*]    RC3 CAFE DELI EXTENSION         [*]     [*]  P        [*]        [*]            [*]   [*]  [*]   [*]
[*]  [*]   FF         [*]    RC3 CAFE PIZZA SLIDE/COUNTER    [*]     [*]  P        [*]        [*]            [*]   [*]  [*]   [*]
[*]  [*]   FF         [*]    RC3 PH II LOCKERS               [*]     [*]  P        [*]        [*]            [*]   [*]  [*]   [*]
[*]  [*]   FF         [*]    FLOOR LECTERN                   [*]     [*]  P        [*]        [*]            [*]   [*]  [*]   [*]
</TABLE>

[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                                       1
<PAGE>

                             Exhibit A-3 (continued)

<TABLE>
<CAPTION>
                       ASSET                                  IN                                                        LTD
LOC  DEPT    CLASS      ID         ASSET DESCRIPTION        SERVICE  LIFE   P  CUSTODIAN  PROJECT ID     TAG      COST  DPR  NBV
---  ----  ----------  -----  ----------------------------  -------  ----  --- ---------  ----------  ----------  ----  ---  ---
<S>  <C>   <C>         <C>    <C>                           <C>      <C>   <C> <C>        <C>         <C>         <C>   <C>  <C>
[*]  [*]   FF          [*]    PODIUM LECTERN                  [*]    [*]    P     [*]         [*]            [*]   [*]  [*]  [*]
[*]  [*]   FORMING     [*]    SS SINK W/ FAUCET               [*]    [*]    P                         [*]          [*]  [*]   -
[*]  [*]   FORMING     [*]    NEW HVAC FOR ROOM 121           [*]    [*]    P                                [*]   [*]  [*]   -
[*]  [*]   LEASEHOLD   [*]    MPA BOSCH STRUCTURAL WALL       [*]    [*]    P     [*]         [*]            [*]   [*]  [*]  [*]
[*]  [*]   LEASEHOLD   [*]    MEZZANNINE, FREE STANDING       [*]    [*]    P     [*]         [*]            [*]   [*]  [*]  [*]
[*]  [*]   MAINTEQ     [*]    SWITCHGEAR                      [*]    [*]    P     [*]         [*]            [*]   [*]  [*]  [*]
                              PHONE&NETWORK
                              WIRING/MFG
[*]  [*]   MISCEQ      [*]    AREA                            [*]    [*]    P                         [*]          [*]  [*]  [*]
[*]  [*]   MISCEQ      [*]    PTD_97 NETWORK/PHONE EQPT       [*]    [*]    P     [*]         [*]            [*]   [*]  [*]  [*]
[*]  [*]   MISCEQ      [*]    PALLET RACKS STOREROOM          [*]    [*]    P     [*]         [*]            [*]   [*]  [*]  [*]
[*]  [*]   MISCEQ      [*]    FLOW THROUGH RACKS STOREROOM    [*]    [*]    P     [*]         [*]            [*]   [*]  [*]  [*]
[*]  [*]   MISCEQ      [*]    FIBER RACKS STOREROOM           [*]    [*]    P     [*]         [*]            [*]   [*]  [*]  [*]
[*]  [*]   MISCEQ      [*]    SHELVING STOREROOM              [*]    [*]    P     [*]         [*]            [*]   [*]  [*]  [*]
[*]  [*]   OUTSIDESTR  [*]    MCC GAS STORAGE BUILDING        [*]    [*]    P                 [*]            [*]   [*]  [*]  [*]
[*]  [*]   PHOTONICEQ  [*]    PTD-TRANSFORMERS                [*]    [*]    P     [*]         [*]     [*]          [*]  [*]   -
[*]  [*]   PHOTONICEQ  [*]    PTD-TRANSFORMERS                [*]    [*]    P     [*]         [*]     [*]          [*]  [*]   -
[*]  [*]   PHOTONICEQ  [*]    FINISHED GOODS STORAGE          [*]    [*]    P     [*]         [*]            [*]   [*]  [*]  [*]
[*]  [*]   PHOTONICEQ  [*]    FINISHED GOODS STORAGE-ADDL     [*]    [*]    P     [*]         [*]            [*]   [*]  [*]  [*]
                              RC3 PH II PUMPS &
[*]  [*]   SERVICE     [*]    ACCESSORIES                     [*]    [*]    P     [*]         [*]            [*]   [*]  [*]  [*]
                              RC3 PH II ULTRA VIOLET
[*]  [*]   SERVICE     [*]    SYSTEM                          [*]    [*]    P     [*]         [*]            [*]   [*]  [*]  [*]
                              RC3 PH II WATER TRETMNT
[*]  [*]   SERVICE     [*]    SYSTEM                          [*]    [*]    P     [*]         [*]            [*]   [*]  [*]  [*]
</TABLE>

[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                                       2
<PAGE>

                             Exhibit A-3 (continued)

<TABLE>
<CAPTION>
                     ASSET                                 IN                                                    LTD
LOC  DEPT   CLASS     ID        ASSET DESCRIPTION        SERVICE  LIFE   P    CUSTODIAN  PROJECT ID  TAG   COST  DPR  NBV
---  ----  --------  -----  ---------------------------  -------  ----  ---   ---------  ----------  ----  ----  ---  ---
<S>  <C>   <C>       <C>    <C>                          <C>      <C>   <C>   <C>        <C>         <C>   <C>   <C>  <C>
[*]  [*]   SERVICE   [*]    RC3 PH II WATER SOFTNER        [*]    [*]    P    [*]            [*]      [*]  [*]   [*]  [*]
[*]  [*]   SERVICE   [*]    RC3 PH II HOT WATER HEATERS    [*]    [*]    P    [*]            [*]      [*]  [*]   [*]  [*]
[*]  [*]   SOFTWARE  [*]    METASSYS SOFTWARE              [*]    [*]    P    [*]            [*]      [*]  [*]   [*]   -
</TABLE>

[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                                        3
<PAGE>

                                   EXHIBIT A-4
                                    IT ASSETS
           EQUIPMENT THAT HAS BEEN OR WILL BE TRANSFERRED TO SUBTENANT

<TABLE>
<CAPTION>
      ASSET TYPE                    FUNCTION                                           COMMENTS
-------------------------   ------------------------------  -------------------------------------------------------------------
<S>                         <C>                             <C>
Intel Server(Miniblind)     Mgmt/SMS Server                 Will be transferred to CPT to be included within the sale to Avanex
Intel Server(Stingray)      Domain Controller               Will be transferred to CPT to be included within the sale to Avanex
Intel Server(Raven)         Shutdown                        Will be transferred to CPT to be included within the sale to Avanex
                                                            Will be transferred to CPT to be included within the sale to Avanex
Intel Server(Triangle)      Shutdown                        Will be transferred to CPT to be included within the sale to Avanex
Intel Server(Lampshade)     Windchill                       Will be transferred to CPT to be included within the sale to Avanex
Intel Server(Whirlpool)     PS ESD database                 Will be transferred to CPT to be included within the sale to Avanex
Intel Server(Eclipse)       PS ESD application              Will be transferred to CPT to be included within the sale to Avanex
Intel Server(Clover)        PS ESD development application  Will be transferred to CPT to be included within the sale to Avanex
Intel Server(Marlin)        PS ESD Barcode application      Will be transferred to CPT to be included within the sale to Avanex
                                                            Will be transferred to CPT to be included within the sale to Avanex
Intel Server(Europa)        MES Quality system              Will be transferred to CPT to be included within the sale to Avanex
Intel Server(Odie)          Cognos Reporting                Will be transferred to CPT to be included within the sale to Avanex
Intel Server(Coffeetable)   MES development database        Will be transferred to CPT to be included within the sale to Avanex
Voice                       Telephones sets                 Were transferred to CPT to be included within the sale to Avanex
Network                     24 port 10/100 copper switch    Already transferred to CPT to be included within the sale to Avanex
Network                     24 port 10/100 copper switch    Already transferred to CPT to be included within the sale to Avanex
Network                     24 port 10/100 copper switch    Already transferred to CPT to be included within the sale to Avanex
Network                     24 port 10/100 copper switch    Already transferred to CPT to be included within the sale to Avanex
Network                     24 port 10/100 copper switch    Already transferred to CPT to be included within the sale to Avanex
Network                     24 port 10/100 copper switch    Already transferred to CPT to be included within the sale to Avanex
Network                     24 port 10/100 copper switch    Already transferred to CPT to be included within the sale to Avanex
Network                     24 port 10/100 copper switch    Already transferred to CPT to be included within the sale to Avanex
Network                     24 port 10/100 copper switch    Already transferred to CPT to be included within the sale to Avanex
Network                     24 port 10/100 copper switch    Already transferred to CPT to be included within the sale to Avanex
Network                     24 port 10/100 copper switch    Already transferred to CPT to be included within the sale to Avanex
Network                     24 port 10/100 copper switch    Already transferred to CPT to be included within the sale to Avanex
Network                     24 port 10/100 copper switch    Already transferred to CPT to be included within the sale to Avanex
Network                     24 port 10/100 copper switch    Already transferred to CPT to be included within the sale to Avanex
Network                     24 port 10/100 copper switch    Already transferred to CPT to be included within the sale to Avanex
</TABLE>

                                       1
<PAGE>

                             EXHIBIT A-4 (CONTINUED)

<TABLE>
<CAPTION>
       ASSET TYPE                      FUNCTION                                          COMMENTS
-------------------------   ------------------------------      --------------------------------------------------------------------
<S>                         <C>                                 <C>
Network                     24 port 10/100 copper switch        Already transferred to CPT to be included within the sale to Avanex
Network                     24 port 10/100 copper switch        Already transferred to CPT to be included within the sale to Avanex
Network                     24 port 10/100 copper switch        Already transferred to CPT to be included within the sale to Avanex
Network                     24 port 10/100 copper switch        Already transferred to CPT to be included within the sale to Avanex
Network                     24 port 10/100 copper switch        Already transferred to CPT to be included within the sale to Avanex
Network                     24 port 10/100 copper switch        Already transferred to CPT to be included within the sale to Avanex
Network                     24 port 10/100 copper switch        Already transferred to CPT to be included within the sale to Avanex
Network                     24 port 10/100 copper switch        Already transferred to CPT to be included within the sale to Avanex
Network                     24 port 10/100 copper switch        Already transferred to CPT to be included within the sale to Avanex
Network                     24 port 10/100 copper switch        Already transferred to CPT to be included within the sale to Avanex
Network                     24 port 10/100 copper switch        Already transferred to CPT to be included within the sale to Avanex
Network                     24 port 10/100 copper switch        Already transferred to CPT to be included within the sale to Avanex
Network                     24 port 10/100 copper switch        Already transferred to CPT to be included within the sale to Avanex
Network                     24 port 10/100 copper switch        Already transferred to CPT to be included within the sale to Avanex
Network                     24 port 10/100 copper switch        Already transferred to CPT to be included within the sale to Avanex
                            Catalyst 12-port Gig Ethernet
Network                     Switch                              Already transferred to CPT to be included within the sale to Avanex
                            Catalyst 12-port Gig Ethernet
Network                     Switch                              Already transferred to CPT to be included within the sale to Avanex
                            Catalyst 12-port Gig Ethernet
Network                     Switch                              Already transferred to CPT to be included within the sale to Avanex
Network                     9-slot chassis                      Already transferred to CPT to be included within the sale to Avanex
Network                     Power Supply                        Already transferred to CPT to be included within the sale to Avanex
Network                     Power Supply                        Already transferred to CPT to be included within the sale to Avanex
Network                     Sup2                                Already transferred to CPT to be included within the sale to Avanex
Network                     PFC                                 Already transferred to CPT to be included within the sale to Avanex
Network                     MSFC                                Already transferred to CPT to be included within the sale to Avanex
Network                     16-port Gig-Eth Mod                 Already transferred to CPT to be included within the sale to Avanex
Network                     16-port Gig-Eth Mod                 Already transferred to CPT to be included within the sale to Avanex
Network                     Switch Fabric Module                Already transferred to CPT to be included within the sale to Avanex
Network                     16-port Gig-Eth Mod                 Already transferred to CPT to be included within the sale to Avanex
Network                     48-port 10/100 RJ-45                Already transferred to CPT to be included within the sale to Avanex
Network                     9-slot chassis                      Already transferred to CPT to be included within the sale to Avanex
Network                     Power Supply                        Already transferred to CPT to be included within the sale to Avanex
Network                     Power Supply                        Already transferred to CPT to be included within the sale to Avanex
Network                     Supervisor 1A                       Already transferred to CPT to be included within the sale to Avanex
</TABLE>

                                       2
<PAGE>

                            EXHIBIT A-4 (CONTINUED)

<TABLE>
<CAPTION>
       ASSET TYPE                   FUNCTION                                               COMMENTS
-------------------------   ------------------------------      --------------------------------------------------------------------
<S>                         <C>                                 <C>
Network                     PFC                                 Already transferred to CPT to be included within the sale to Avanex
Network                     24-port 100FX MT-RJ                 Already transferred to CPT to be included within the sale to Avanex
Network                     24-port 100FX MT-RJ                 Already transferred to CPT to be included within the sale to Avanex
Network                     24-port 100FX MT-RJ                 Already transferred to CPT to be included within the sale to Avanex
Network                     24-port 100FX MT-RJ                 Already transferred to CPT to be included within the sale to Avanex
Network                     24-port 100FX MT-RJ                 Already transferred to CPT to be included within the sale to Avanex
Network                     24-port 100FX MT-RJ                 Already transferred to CPT to be included within the sale to Avanex
Network                     9-slot chassis                      Already transferred to CPT to be included within the sale to Avanex
Network                     Power Supply                        Already transferred to CPT to be included within the sale to Avanex
Network                     Power Supply                        Already transferred to CPT to be included within the sale to Avanex
Network                     Sup1A with PFC                      Already transferred to CPT to be included within the sale to Avanex
Network                     PFC                                 Already transferred to CPT to be included within the sale to Avanex
Network                     24-port 100FX MT-RJ                 Already transferred to CPT to be included within the sale to Avanex
Network                     24-port 100FX MT-RJ                 Already transferred to CPT to be included within the sale to Avanex
Network                     24-port 100FX MT-RJ                 Already transferred to CPT to be included within the sale to Avanex
Network                     24-port 100FX MT-RJ                 Already transferred to CPT to be included within the sale to Avanex
Network                     24-port 100FX MT-RJ                 Already transferred to CPT to be included within the sale to Avanex
Network                     24-port 100FX MT-RJ                 Already transferred to CPT to be included within the sale to Avanex
Network                     24-port 100FX MT-RJ                 Already transferred to CPT to be included within the sale to Avanex
Network                     9-slot chassis                      Already transferred to CPT to be included within the sale to Avanex
Network                     Power Supply                        Already transferred to CPT to be included within the sale to Avanex
Network                     Power Supply                        Already transferred to CPT to be included within the sale to Avanex
Network                     Sup1A with PFC                      Already transferred to CPT to be included within the sale to Avanex
Network                     PFC                                 Already transferred to CPT to be included within the sale to Avanex
Network                     24-port 100FX MT-RJ                 Already transferred to CPT to be included within the sale to Avanex
Network                     24-port 100FX MT-RJ                 Already transferred to CPT to be included within the sale to Avanex
Network                     24-port 100FX MT-RJ                 Already transferred to CPT to be included within the sale to Avanex
Network                     24-port 100FX MT-RJ                 Already transferred to CPT to be included within the sale to Avanex
Network                     24-port 100FX MT-RJ                 Already transferred to CPT to be included within the sale to Avanex
Network                     24-port 100FX MT-RJ                 Already transferred to CPT to be included within the sale to Avanex
Network                     24-port 100FX MT-RJ                 Already transferred to CPT to be included within the sale to Avanex
Network                     9-slot chassis                      Already transferred to CPT to be included within the sale to Avanex
Network                     Power Supply                        Already transferred to CPT to be included within the sale to Avanex
</TABLE>

                                       3
<PAGE>

                            EXHIBIT A-4 (CONTINUED)

<TABLE>
<CAPTION>
       ASSET TYPE                      FUNCTION                                            COMMENTS
-------------------------   ------------------------------      --------------------------------------------------------------------
<S>                         <C>                                 <C>
Network                     Power Supply                        Already transferred to CPT to be included within the sale to Avanex
Network                     Sup1A with PFC                      Already transferred to CPT to be included within the sale to Avanex
Network                     PFC                                 Already transferred to CPT to be included within the sale to Avanex
Network                     24-port 100FX MT-RJ                 Already transferred to CPT to be included within the sale to Avanex
Network                     100BaseFX MM Ethernet               Already transferred to CPT to be included within the sale to Avanex
Network                     24-port 100FX MT-RJ                 Already transferred to CPT to be included within the sale to Avanex
Network                     24-port 100FX MT-RJ                 Already transferred to CPT to be included within the sale to Avanex
Network                     9-slot chassis                      Already transferred to CPT to be included within the sale to Avanex
Network                     Power Supply                        Already transferred to CPT to be included within the sale to Avanex
Network                     Power Supply                        Already transferred to CPT to be included within the sale to Avanex
Network                     Supervisor 1A                       Already transferred to CPT to be included within the sale to Avanex
Network                     PFC                                 Already transferred to CPT to be included within the sale to Avanex
Network                     24-port 100FX MT-RJ                 Already transferred to CPT to be included within the sale to Avanex
Network                     24-port 100FX MT-RJ                 Already transferred to CPT to be included within the sale to Avanex
Network                     24-port 100FX MT-RJ                 Already transferred to CPT to be included within the sale to Avanex
Network                     24-port 100FX MT-RJ                 Already transferred to CPT to be included within the sale to Avanex
Network                     9-slot chassis                      Already transferred to CPT to be included within the sale to Avanex
Network                     Power Supply                        Already transferred to CPT to be included within the sale to Avanex
Network                     Power Supply                        Already transferred to CPT to be included within the sale to Avanex
Network                     Sup                                 Already transferred to CPT to be included within the sale to Avanex
Network                     PFC                                 Already transferred to CPT to be included within the sale to Avanex
Network                     24-port 100FX MT-RJ                 Already transferred to CPT to be included within the sale to Avanex
Network                     24-port 100FX MT-RJ                 Already transferred to CPT to be included within the sale to Avanex
Network                     24-port 100FX MT-RJ                 Already transferred to CPT to be included within the sale to Avanex
Network                     24-port 100FX MT-RJ                 Already transferred to CPT to be included within the sale to Avanex
Network                     24-port 100FX MT-RJ                 Already transferred to CPT to be included within the sale to Avanex
Network Phone               PTD_97 NETWORK/PHONE EQPT           Will be transferred to CPT to be included within the sale to Avanex
Network Phone               EPP NETWORK EXPANSION               Will be transferred to CPT to be included within the sale to Avanex
Midrange(PT41)(4100)        MES (Promis)                        Will be transferred to CPT to be included within the sale to Avanex
Midrange(PT109)(4100)       MES (Pathworks)                     Will be transferred to CPT to be included within the sale to Avanex
Midrange(SW800)(Disk Cab)   MES (Promis)                        Will be transferred to CPT to be included within the sale to Avanex
Midrange(2 GS-80)           Shutdown                            Will be transferred to CPT to be included within the sale to Avanex
Midrange(6 FiberChannel
SAN cabinets)               Shutdown                            Will be transferred to CPT to be included within the sale to Avanex
Midrange(Star Coupler)      MES (Promis)                        Will be transferred to CPT to be included within the sale to Avanex
</TABLE>

                                       4
<PAGE>

                             EXHIBIT A-4 (CONTINUED)

<TABLE>
<CAPTION>
        ASSET TYPE                  FUNCTION                                              COMMENTS
-------------------------   ------------------------------      --------------------------------------------------------------------
<S>                         <C>                                 <C>
Midrange(SW800)(Disk Cab)   MES (Promis)                        Will be transferred to CPT to be included within the sale to Avanex
Midrange(UPS)               Shutdown                            Will be transferred to CPT to be included within the sale to Avanex
Intel Server(Aftershock)    Scientific research                 Already transferred to CPT to be included within the sale to Avanex
Intel Server(Dustorm)       Scientific research                 Already transferred to CPT to be included within the sale to Avanex
Intel Server(Earthquake)    Scientific research                 Already transferred to CPT to be included within the sale to Avanex
Intel Server(Hardrain)      Scientific research                 Already transferred to CPT to be included within the sale to Avanex
</TABLE>

                                       5
<PAGE>

                                   Exhibit A-5

      Contracts Administered by Sublandlord, Costs reimbursed by Subtenant

<TABLE>
<CAPTION>
                                                                                          METHODOLOGY
                                                                                          -----------
       DESCRIPTION OF CONTACT                       AMOUNT OF ACCOUNT TO BE SERVICE       AVANEX  VIA             PLANT OCCUPANT
VENDOR      WORK      PERSON  PHONE NO # REQ # PO #    PO      CHARGED TO    DATE   OWNER DIRECT  CPM COMMENTS   RESPONSIBILITIES
------------------------------------------------------------------------------------------------------------------------------------
<S>    <C>            <C>     <C>        <C>   <C>  <C>       <C>           <C>     <C>   <C>     <C> <C>      <C>
                                                                                                               TECH.- weekly testing
                                                                             4/1/13                            duration/ frequency
                                                                               to                              verification through
 [*]     Generators     [*]      [*]      [*]   [*]    [*]        [*]       3/31/04        [*]    [*]          Metasys histories,
                                                                                                               visual inspections,
                                                                                     CPM                       lamp tests
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                               Weekly SME audits
                                                                                                               of riser pressures,
                                                                                                               P.I.V. valve
            Plant                                                                                              positions.
 [*]      Sprinkler     [*]      [*]      [*]   [*]    [*]        [*]       6/1/03-        [*]    [*]          Tech. Files
             Sys.                                                           5/31/04                            inspection reports,
                                                                                                               impairment reports to
                                                                                     CPM                       Risk Logic
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                               SME- Daily SME
                                                                            4/1/03 to                          audits of
                                                                              to                               delivery
 [*]    Compressors     [*]      [*]      [*]   [*]    [*]        [*]       4/1/04         [*]    [*]          pressures, oil
                                                                                                               level, run and
                                                                                     CPM              [*]      load hrs.
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                               SME-collection
 [*]    Central Vac.    [*]      [*]      [*]   [*]    [*]        [*]       Blanket        [*]    [*]          system emptied
                                                                              WO.    CPM                       weekly
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                               TECH.- supervise
                                                                                                               completion of
                                                                                                               twice-monthly
                                                                                                               P.M. task
                                                                            6/1/02                             schedules,
       Environmental                                                          to                               coordinate
 [*]    Controls        [*]      [*]      [*]   [*]    [*]                  5/31/03        [*]    [*]          programming
                                                                                                               changes,
                                                                                                               hardware repairs,
                                                                                                               maintenance,
                                                                                     CPM                       track by work order
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                               TECH- perform
 [*]   Kitchen Repair   [*]      [*]      [*]   [*]    [*]        [*]       Blanket        [*]    [*]          low-level
                                                                              WO.    CPM                       repairs
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                                       1
<PAGE>

                             Exhibit A-5 (continued)

<TABLE>
<CAPTION>
                                                                                            METHODOLOGY
                                                                                            -----------
       DESCRIPTION OF CONTACT                       AMOUNT OF ACCOUNT TO BE SERVICE         AVANEX  VIA            PLANT OCCUPANT
VENDOR      WORK      PERSON  PHONE NO # REQ # PO #    PO      CHARGED TO    DATE     OWNER DIRECT  CPM COMMENTS  RESPONSIBILITIES
------------------------------------------------------------------------------------------------------------------------------------
<S>    <C>            <C>     <C>        <C>   <C>  <C>       <C>           <C>       <C>   <C>     <C> <C>      <C>
                                                                                                                 TECH. OR
                                                                                                                 SME-perform
                                                                                                                 daily U.V.
                                                                                                                 system audits,
          Chemical                                                                                               pressure-wash
         Maint. of       [*]     [*]      [*]   [*]    [*]        [*]       12/31/02-        [*]    [*]          filter banks,
 [*]   Cooling Tower                                                        12/31/03                             verify lamp
         & Boilers                                                                                               operation,
                                                                                                                 Ultraviolet
                                                                                                                 intensities,
                                                                                       CPM              [*]      conductivity, etc.
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                 TECH.-
                                                                                                                 coordinate
                                                                                                                 events,
          Critical                                                                                               activities,
         Component                                                          5/10/03                              safety
 [*]     Electrical      [*]      [*]     [*]   [*]    [*]        [*]         to              [*]   [*]          training,
         Maintenance                                                        5/10/04                              orient
                                                                                                                 contractor,
                                                                                                                 track by work
                                                                                       CPM              [*]      order
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                 TECH. AND SME
                                                                                                                 perform minor
                                                                                                                 repairs,
          Overhead                                                                                               adjustments,
        Doors. Dock                                                          For Year                            assist
 [*]     levelers,       [*]      [*]     [*]   [*]    [*]         [*]        2003           [*]    [*]          contractor to
         Dock Locks                                                                                              accomplish PMs
                                                                                                                 and repairs,
                                                                                                                 track by work
                                                                                       CPM              [*]      order
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                 TECH.-manage
 [*]    Pest Control     [*]      [*]     [*]   [*]    [*]         [*]       For Year         [*]   [*]          customer
                                                                               2003    CPM                       complaints
------------------------------------------------------------------------------------------------------------------------------------
 [*]      Sewers &       [*]      [*]     [*]   [*]    [*]         [*]       Blanket          [*]   [*]
        Drains Work                                                            WO.     CPM
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                                       2
<PAGE>

<TABLE>
<S>    <C>               <C>      <C>     <C>   <C>    <C>         <C>      <C>        <C>    <C>   <C> <C>      <C>
                                                                                                                 TECH.- schedule
                                                                                                                 inspections,
                                                                                                                 assist
                                                                                                                 contractor
                                                                            February                             activities,
 [*]   Fire/Security                                                         2003 to                             coordinate
          Systems        [*]      [*]     [*]   [*]    [*]                  January           [*]   [*]          improvements,
                                                                            31, 2004                             additions,
                                                                                                                 file inspection
                                                                                                                 certificates,
                                                                                                                 impairment
                                                                                       CPM              [*]      reports to Risk
                                                                                                                 Logic, track by
                                                                                                                 work order
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                 SME assist
 [*]       Elevator                                                         3/1/2003                             maintenance
            Maint.       [*]      [*]     [*]   [*]    [*]                     to             [*]   [*]          events,
                                                                            3/1/2004                             inspections,
                                                                                                                 track by work
                                                                                       CPM                       order
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                 TECH./SME-
                                                                                                                 coordinate
                                                                                                                 maintenance
                                                                                                                 schedules,
                                                                                                                 events,
                                                                                                                 activities,
                                                                                                                 safety
                                                                                                                 training,
                                                                                                                 orient
                                                                                                                 contractor to
                                                                                                                 accomplish
                                                                                                                 tasks, track by
       HVAC, Boiler,                                                                                             work order.
        Pump, Water                                                         For Year                             Perform daily/
 [*]     Softener,       [*]      [*]     [*]   [*]    [*]         [*]        2003            [*]   [*]          monthly
       Chiller Maint.                                                                                            equipment
                                                                                                                 inspections
                                                                                                                 internally.
                                                                                                                 Verify
                                                                                                                 equipment
                                                                                                                 operation,
                                                                                                                 report
                                                                                                                 deficiencies,
                                                                                                                 anomalies.
                                                                                                                 Accompany
                                                                                                                 contractor
                                                                                                                 during rooftop
                                                                                       CPM                       activities.
------------------------------------------------------------------------------------------------------------------------------------
 [*]    Consumptive                                    [*]                                    [*]   [*]
        Water Permit                                                                   CPM              [*]
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                                       3
<PAGE>

                                   EXHIBIT A-6

                           SUBTENANT RESPONSIBILITIES

           OPERATIONAL COSTS, REPAIR AND MAINTENANCE SERVICE CONTRACTS

<TABLE>
<CAPTION>
                                                                                          METHODOLOGY
                                                                                          -----------
        DESCRIPTION CONTACT PHONE              AMOUNT ACCOUNT TO BE  SERVICE              AVANEX   VIA          PLANT OCCUPANT
VENDOR   OF WORK    PERSON  NO #  REQ.# PO #   OF PO   CHARGED TO     DATE        OWNER   DIRECT   CPM COMMENTS RESPONSIBILITIES
------------------------------------------------------------------------------------------------------------------------------------
<S>    <C>           <C>   <C>     <C>  <C>      <C>  <C>           <C>           <C>     <C>      <C>  <C>    <C>
                                                                                                                TECH- daily system
                                                                      12/17/01                                  operation monitoring
                                                                         to                                     by keypad, alarms
 [*]     UPS (3160)   [*]   [*]     [*]  [*]     [*]      [*]         12/16/03      CPM     [*]    [*]   [*]    tied to Metasys
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                TECH.- daily system
                                                                                                                operation monitoring
                                                                      8/10/01                                   by keypad, alarms
 [*]     UPS (3100)   [*]   [*]     [*]  [*]     [*]      [*]       to 8/09/03      CPM     [*]    [*]   [*]    tied to Metasys
 -----------------------------------------------------------------------------------------------------------------------------------
                                                                                                                TECH.- daily system
                                                                                                                operation monitoring
                                                                                                                by keypad,
                                                                     1/1/01 to                                  UNMONITORED by
 [*]     FE 10 KVA    [*]   [*]                  [*]      [*]         1/1/04        CPM     [*]    [*]   [*]    Metasys
------------------------------------------------------------------------------------------------------------------------------------
          Storage
 [*]      Trailers    [*]                                                           Avanex  [*]    [*]
------------------------------------------------------------------------------------------------------------------------------------
         Vibration
 [*]      Analysis    [*]   [*]                  [*]      [*]           n/a         Avanex  [*]    [*]
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                TECH.- prepare and
                                                                                                                ship, record as
        PPE                                                                                                     needed, track by
 [*]    testing       [*]                                                           Avanex  [*]    [*]          work order
------------------------------------------------------------------------------------------------------------------------------------
       Equip /
[*]    Office Moves   [*]   [*]                                                     Avanex  [*]    [*]
------------------------------------------------------------------------------------------------------------------------------------
       Offsite                                                       2/1/03 to
[*]    Storage        [*]   [*]     [*]  [*]     [*]      [*]         6/30/03       Avanex  [*]    [*]   [*]
------------------------------------------------------------------------------------------------------------------------------------
       Process                                                                                                  SME- Daily pressure/
[*]     Gases         [*]   [*]                                                     Avanex  [*]    [*]           level audits
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                Monthly meter resets
                                                                                                                by TECH., daily
                                                                                                                meter readings by
                                                                                                                SME, consumption
          Gas /                                                                                                 reductions
         Elect                                                        Blanket                                   programmed through
[*]     Utilities     [*]   [*]     [*]  [*]     [*]      [*]            WO.        CPM     [*]    [*]          Metasys
------------------------------------------------------------------------------------------------------------------------------------
[*]      Piping       [*]   [*]                           [*]         Blanket
                                                                         WO.        Avanex  [*]    [*]
------------------------------------------------------------------------------------------------------------------------------------
[*]      Electric           [*]                                                             [*]    [*]
        Contractor                                                                  Avanex
------------------------------------------------------------------------------------------------------------------------------------
       Fork Truck,
           Yale                                                      5-year,Blanket                             SME-perform operator
        ERP030TGN3                                                      P.O.        Avanex  [*]    [*]         inspections
[*]       6TE078      [*]   [*]          [*]     [*]
------------------------------------------------------------------------------------------------------------------------------------
        Fork Lifts
[*]      / Racks      [*]   [*]     [*]  [*]     [*]      [*]        Blanket P.O.   Avanex  [*]    [*]
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                                        1

<PAGE>

                             EXHIBIT A-6 (CONTINUED)

<TABLE>
<CAPTION>

                                                                                          METHODOLOGY
                                                                                          -----------
       DESCRIPTION   CONTACT PHONE            AMOUNT OF ACCOUNT TO BE SERVICE             AVANEX VIA              PLANT OCCUPANT
VENDOR   OF WORK      PERSON  NO#  REQ.# PO #    PO       CHARGED TO   DATE       OWNER   DIRECT CPM COMMENTS    RESPONSIBILITIES
------------------------------------------------------------------------------------------------------------------------------------
<S>    <C>           <C>      <C>  <C>   <C>   <C>      <C>           <C>          <C>    <C>    <C> <C>      <C>
          Office
[*]     Furniture /
          Moves      [*]      [*]                                                  Avanex   [*]  [*]
------------------------------------------------------------------------------------------------------------------------------------
                                                                       3/1/03 to
[*]    Custodial     [*]      [*]  [*]         [*]           [*]        12/31/03   Avanex   [*]  [*]   [*]
------------------------------------------------------------------------------------------------------------------------------------
         Inside
         Plant
       Maint./Landsc                                                   7/17/00 to
[*]    aping/Lawn    [*]      [*]  [*]   [*]   [*]           [*]       7/17/01     Avanex   [*]  [*]
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                              SME- Unload, transport
                                                                                                              salt with forktruck,
                                                                                                              fill system, monitor
                                                                                                              inventories, notify
                                                                       Blanket                                tech. at reorder time,
[*]    Solar Salt    [*]      [*]  [*]   [*]   [*]           [*]         WO.       Avanex   [*]  [*]   [*]    track by work order
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                              Perform emergency
                                                                                                              treating of
       Jiffy Melt                                                      Blanket                                walkways, track by
[*]       Salt       [*]      [*]  [*]   [*]   [*]           [*]          WO.      Avanex   [*]  [*]          work order
------------------------------------------------------------------------------------------------------------------------------------
         Waste
[*]     Removal               [*]                                                  Avanex   [*]  [*]
------------------------------------------------------------------------------------------------------------------------------------
[*]    Metal Waste            [*]                                                  Avanex   [*]  [*]
------------------------------------------------------------------------------------------------------------------------------------
[*]    Contractor    [*]      [*]                            [*]                   Avanex   [*]  [*]
------------------------------------------------------------------------------------------------------------------------------------
       Corrugated
[*]       Waste               [*]  [*]   [*]   [*]                                 Avanex   [*]  [*]
------------------------------------------------------------------------------------------------------------------------------------
        Non-Haz.
         Waste                                                         Blanket
[*]     Removal      [*]      [*]  [*]   [*]   [*]           [*]         WO.       Avanex   [*]  [*]
------------------------------------------------------------------------------------------------------------------------------------
       Janitorial
[*]     Supplies     [*]      [*]                                                  Avanex   [*]  [*]
------------------------------------------------------------------------------------------------------------------------------------
       Engineering
[*]     Services     [*]      [*]                                                  Avanex   [*]  [*]
------------------------------------------------------------------------------------------------------------------------------------
        External
        grounds
[*]    maintenance   [*]      [*]              [*]                     Blanket     Avanex   [*]  [*]   [*]
------------------------------------------------------------------------------------------------------------------------------------
         Snow
[*]     Removal      [*]      [*]              [*]                     Blanket     Avanex   [*]  [*]   [*]
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                                        2

<PAGE>

                                    EXHIBIT B
                            OPTION TO RENEW SUBLEASE

A.       Grant of Option: Sublandlord hereby grants to Subtenant two (2)
option(s) (the "Option(s)") to extend the term of this Sublease, each for an
additional term of two (2) years, commencing when the then-existing term
expires, upon the terms and conditions set forth in this Exhibit.

B.       Exercise of Option: Subtenant may exercise such option by giving
Sublandlord written notice of its intention not less than one hundred eighty
(180) days prior to the expiration of the then-existing term of this Sublease.

C.       Extended Term Rent: If this Option is exercised, the basic rent for the
Demised Premises shall become the then current fair market monthly rent ("Fair
Market Rent") for the Demised Premises as of the commencement date of the
applicable extended term, as determined by the agreement of the parties or, if
the parties cannot agree within sixty (60) days prior to the commencement of
such extended term, then by an appraisal. All other terms and conditions
contained in the Sublease, as the same may be amended from time to time by the
parties in accordance with the provisions of the Sublease, shall remain in full
force and effect and shall apply during the Option term.

D.       Appraisal: If it becomes necessary to determine the fair market rental
value for the Demised Premises by appraisal, real estate appraiser(s), all of
whom shall be members of the American Institute of Real Estate Appraisers and
who have at least five (5) years experience appraising office space located in
the vicinity of the Demised Premises shall be appointed and shall act in
accordance with the following procedures:

(i)      If the parties are unable to agree on the Fair Market Rent within the
allowed time, either party may demand an appraisal by giving written notice to
the other party, which demand to be effective must state the name, address and
qualifications of an appraiser selected by the party demanding an appraisal (the
"Notifying Party"). Within ten (10) days following the Notifying Party's
appraisal demand, the other party (the "Non-Notifying Party") shall either
approve the appraiser selected by the notifying party or select a second
properly qualified appraiser by giving written notice of the name, address and
qualification of said appraiser to the Notifying Party. If the Non-Notifying
Party fails to select an appraiser within the ten (10) day period, the appraiser
selected by the Notifying Party shall be deemed selected by both parties and no
other appraiser shall be selected. If two appraisers are selected, they shall
select a third appropriately qualified appraiser. If the two appraisers fail to
select a third qualified appraiser, the third appraiser shall be appointed by
the then presiding judge of the county where the Demised Premises are located
upon application by either party.

(ii)     If only one appraiser is selected, that appraiser shall notify the
parties in simple letter form of its determination of the Fair Market Rent for
the Demised Premises within thirty (30) days following his selection, which
appraisal shall be conclusively determinative and binding on the parties as the
appraised Fair Market Rent.

(iii)    If multiple appraisers are selected, the appraisers shall meet not
later than twenty (20) days following the selection of the last appraiser. At
such meeting the appraisers shall attempt to determine the Fair Market Rent for
the Demised Premises as of the commencement date of the extended term by the
agreement of at least two (2) of the appraisers.

                                       1

<PAGE>

(iv)     If two (2) or more of the appraisers agree on the Fair Market Rent for
the Demised Premises at the initial meeting, such agreement shall be
determinative and binding upon the parties hereto and the agreeing appraisers
shall, in simple letter form executed by the agreeing appraisers, forthwith
notify both Sublandlord and Subtenant of the amount set by such agreement. If
multiple appraisers are selected and two (2) appraisers are unable to agree on
the Fair Market Rent for the Demised Premises, all appraisers shall submit to
Sublandlord and Subtenant an independent appraisal of the Fair Market Rent for
the Demised Premises in simple letter form within twenty (20) days following
appointment of the final appraiser. The parties shall then determine the Fair
Market Rent for the Demised Premises by averaging the appraisals; provided that
any high or low appraisal, differing from the middle appraisal by more than ten
percent (10%) of the middle appraisal, shall be disregarded in calculating the
average.

(v)      The appraisers' determination of Fair Market Rent shall be based on
rental of space of the same age, construction, size and location as the Demised
Premises with the improvements installed therein at Sublandlord's expense and
shall take into account Subtenant's obligations to pay additional rent under
this Sublease. In determining Fair Market Rent, the appraisers shall not
consider any alterations installed in the Demised Premises at Subtenant's
expense.

(vi)     If only one appraiser is selected, then each party shall pay one-half
of the fees and expenses of that appraiser. If three appraisers are selected,
each party shall bear the fees and expenses of the appraiser it selects and
one-half of the fees and expenses of the third appraiser.

                                       2

<PAGE>

                                    EXHIBIT C
                                CULINARY SERVICES

OPERATIONS

-    Culinary Services is responsible for purchasing and maintaining all small
     wears, food products, supplies and temporary labor.

-    Utilities and refuse removal will be provided by Avanex.

-    During the duration of this agreement, Culinary Services will have
     exclusive use of all food service equipment. In the event that this
     agreement is cancelled, discussions between Avanex and Corning will take
     place to determine use of equipment.

-    Culinary Services will provide service of a well balanced, wholesome and
     nourishing menu:

         -    Sample menu attached

-    Hours of operation 7 a.m. - 2 p.m. (Mon - Fri)

-    Culinary Services will provide a continental breakfast along with hot
     breakfast sandwiches (grab n go) from 7a.m. - 10 a.m. (Mon - Fri)

-    Culinary Services will provide daily lunch specials from 10:30 a.m. - 1:30
     p.m. (Mon - Fri) which include:

         -    Soup, Salad Bar, Hot Entrees, Deli, Pizza, Grill Items (Grab n
              Go), Desserts, Assorted Beverages

-    Culinary Services will manage vending services with commission to be
     credited.

CATERING

-    Catering will be provided by Culinary Services to Avanex at cost.

SANITATION

-    Culinary Services will comply with all requirements of the NYS Department
     of Health

-    Culinary Services will comply with all OSHA requirements.

-    Culinary Services will utilize a third-party sanitation/safety auditing
     service (Steritech), to ensure compliance of all food safety and sanitation
     regulations.

PEOPLE

-    Culinary Services will employ and train all food service employees at an
     adequate level to operate the food service operation, and to maintain the
     level of expectations.

FINANCIALS

-    Based on current program and staffing our projected annual subsidy is $[*].

-    THIS NUMBER INCLUDES:

         -    (1) Corning Incorporated Employee - Salary & Benefits

         -    (2) Contract employees

         -    Purchase of food and beverages

         -    Credited vending commissions

         -    Register receipts

         -    All other miscellaneous expenses associated with the operation

-    All cost associated with the Avanex operation will be tracked separately by
     Culinary Services and included in the P&L summary.

-    Culinary will invoice Avanex on a monthly basis for any net loss.

[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                                       1

<PAGE>

                                    EXHIBIT D
                                SECURITY SERVICES

Service Level Agreement
Corning Incorporated Security Operations
Avanex
July 7, 2003

                                   Restricted

Corning Security Operations will provide essential security services to Avanex
for access control and alarm monitoring, technical security systems maintenance,
lockshop services, central security services, and security officer staffing.

BUDGET

-    Charges for Corning Security services for the first six (6) months will be
     $[*] per period. Thereafter, charges will be adjusted to $[*] per period
     for the remaining 2004 fiscal year.

ACCESS CONTROL / ALARM MONITORING SERVICES

-    Avanex will be provided a separate access control system that will be
     administrated by the Corning Security Operations System Administrator.

         -   The Host will be administered by the Corning Security Operations
             Systems Administrator.

         -   Avanex will pay for all associated licensing fees.

         -   Security system workstations will be positioned at Corning Central
             Security and at the Avanex Erwin facility.

         -   Access history reports will have a defined approval path through
             the assigned Security Operations supervisor.

     -   Proximity Card Technology

         -   Card stock will be ordered from Motorola by Corning Security
             Operations.

         -   The proximity card technology will drive the E-Labor process for
             Avanex employees.

     -   Initial Avanex Employee Badging Process for the EPP Location Only

         -   Corning Security will build the Avanex badge template.

         -   Badging the Avanex employees will be a 2-3 week process.

         -   Corning will badge all Avanex employees during the initial badge
             production process for $[*]. Thereafter, lost or broken badges will
             be replaced free of charge. However, new badge requests will be
             charged at the rate of $[*] per badge, after the badge project is
             complete.

         -   A digital camera provided by Avanex will be utilized, on site,
             after the initial badging project for all subsequent badge
             requirements.

         -   Initial badge equipment issue will include a standard badge clip.

         -   Additional badge accessories will be purchased by Avanex.

         -   Any changes to the badge design after the initial badging project
             will result in an additional project cost.

[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

<PAGE>

     -   Initial Badging Timeline

         -    July 2nd - Reserve room in the EPP Facility, set up equipment.

         -    Wk. of July 7th - Plant communications and sign-up.

         -    Wk. of July 14th - On-site badging begins.

             -    Monday through Wednesday (7/14 - 7/16) Badge Room hours: 8am -
                  5pm

             -    Thursday (7/17) Badge Room hours: 7am- 3:30pm

             -    Friday (7/18) Badge Room hours: 7am - 3:30pm

         -   July 21st Badge Room hours: 8am-4pm to do catch-up badging for
             those who may have missed their scheduled appointment. July 21st
             will be the last day Security Operations provides "in-plant"
             badging.

     -   Estimated Costs

         -   Server Set-Up Fee - $[*]

         -   Initial Badging - $[*]

         -   Server Back-Up and Maintenance- $[*]

TECHNICAL SECURITY SYSTEMS MAINTENANCE

-    Routine maintenance of the current configurations for access control, alarm
     monitoring, and CCTV systems is included in the annualized charges.

     -   Any costs created by Avanex customer-driven project(s), expansion(s),
         change(s), including new devices, must be paid to Corning using normal
         charge-out rates. This includes accidental and deliberate destruction
         of Corning equipment.

     -   Digital video history reports/requests will have a defined approval
         path through the assigned Security Operations supervisor.

LOCKSHOP

-    Routine maintenance for all existing BEST cores will be provided.

-    Any costs created by Avanex customer-driven project(s), expansion(s),
     change(s), including new devices must be paid to Corning at an hourly rate
     of $[*]. This includes accidental and deliberate destruction of Corning
     equipment.

-    There will be no support provided for furniture keys.

-    Two new keys will be provided for each newly installed core; broken or lost
     keys will be replaced at the rate of $[*] per key.

CENTRAL SECURITY SERVICES

-    Will provide:

     -   24X7 alarm monitoring and access control support.

     -   Emergency dispatch and response to the Avanex Erwin facility.

     -   [*] emergency number will be maintained until Corning IT Services
         provides a new prefix.

Priority alarms monitored will be:

     -   Fire, Medical, and Perimeter alarms.

     -   Employee abuse of security detection systems may result in increased
         charges by Corning to Avanex.

-    Will not provide:

     -   Central Security will not be responsible for Avanex employee phone
         transfers.

     -   Corning Security will not provide vehicle unlock or vehicle jump-start
         services.

     -   Production / Process Alarms are NOT included in the scope.

[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                                       2

<PAGE>

-    Methods of medical transport will be:

     -   Major Medical - via ambulance.

     -   Minor Medical - via personal owned vehicle or cab.

SECURITY OFFICER SERVICES

Will provide:

-    Contingent employees will be provided by Corning Security Operations to
     accommodate 24X7 staffing.

     -   Staffing will consist of 168 regularly scheduled hours per week.

     -   Officers will be state licensed and trained in Basic First Aid and
         Defibrillator use.

-    Security officer services will be strictly security related and managed by
     Corning Security supervision.

-    Uniforms will be provided by Corning Security and will remain consistent
     with Corning standards.

-    Facility-mandated training beyond the scope required by Corning Security
     Operations will be paid for by Avanex - this will include incurred overtime
     as well.

-    Avanex will pay for security requirements beyond the normal security
     schedule (i.e.: social functions, special projects etc.) at an hourly rate
     of $[*].

-    Proprietary replacements for emergent / last-minute notifications will be
     billed at an hourly rate of $[*] (for Non-Holiday scheduling).

-    There will be two cross-trained contingents. Cross-training will be billed
     at the hourly rate of $[*]. Training time will take two weeks per person.

-    Routine alarm monitoring will be conducted by the on-site security
     officer(s).

Will not provide:

-    Reception / Administrative breaks.

-    Paycheck distribution.

-    Managing recognition systems.

-    Facility support work such as:

     -   snow removal

     -   mail sorting

     -   receiving dock management

-    Corning Security will not provide vehicle unlock or vehicle jump-start
     services.

-    Investigative follow-up services, post initial Security response, unless
     specifically requested by Avanex in writing, and agreed upon by Corning
     Corporate Security. Thereafter, Avanex will be billed at the hourly rate of
     $[*]. Travel expenses, if incurred outside the Corning, NY area, will also
     be paid by Avanex. Such investigations will be directed by Corning
     Corporate Security with the resolutions/findings formally reported back to
     Avanex.

[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                                       3

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