Document:

Notice of Restricted Stock Unit Grant

 Exhibit 10.83 

 

							
	 

	 		 	Notice of Restricted Stock Unit Grant
	 	 	Name	 	Michael W. Kramer	  	Employee ID
		 	Date of Grant	 	December 5, 2011	  	 Number of Restricted Stock Units Granted
 119,332

 Restricted Stock Unit Grant 
 Subject to the terms of this Notice of Restricted Stock Unit Grant (“Notice”), the J. C. Penney Company, Inc. (the “Company”) hereby grants Michael W. Kramer (“You” or
“Your”) the number of restricted stock units listed above. The number of restricted stock units listed above was determined by dividing $4 million, the agreed on value of Your restricted stock unit award, by the Fair Market Value of the
Common Stock on December 5, 2011. Each restricted stock unit shall at all times be deemed to have a value equal to the then-current fair market value of one share of Common Stock. 
 Definitions 
 For purposes of this Notice, unless the context requires otherwise, the
following terms shall have the meanings indicated below: 
 “Board” shall mean the Board of Directors of the Company. 

“Change in Control” shall mean a change of ownership, a change of effective control, or a change in ownership of a substantial portion of the
assets of the Company. 
  

	 	(a)	A Change of ownership occurs on the date that a person or persons acting as a group acquires ownership of stock of the Company that together with stock held by such
person or group constitutes more than 50 percent of the total fair market value or total voting power of the stock of the Company. 

  

	 	(b)	Notwithstanding whether the Company has undergone a change of ownership, a change of effective control occurs (a) when a person or persons acting as a group
acquires within a 12-month period 30 percent of the total voting power of the stock of the Company or (b) a majority of the Board of Directors is replaced within 12 months if not previously approved by a majority of the members. A change in
effective control also may occur in any transaction in which either of the two corporations involved in the transaction has a Change in Control Event, i.e. multiple change in control events. For purposes of this Section 2, any acquisition by
the Company of its own stock within a 12-month period, either through a transaction or series of transactions, that, immediately following such acquisition, results in the total voting power of a person or persons acting as a group to equal or
exceed 30 percent of the total voting power of the stock of the Company will not constitute a change in effective control of the Company. 

  

	 	(c)	A Change in ownership of a substantial portion of the Company’s assets occurs when a person or persons acting as a group acquires assets that have a total gross
fair market value equal to or more than 40 percent of the total gross fair market value of all assets of the Company immediately prior to the acquisition. A transfer of assets by the Company is not treated as a change in the ownership of such assets
if the assets are transferred to – 

 (i) A shareholder of the Company (immediately before the asset
transfer) in exchange for or with respect to its stock; 
 (ii) An entity, 50 percent or more of the total value or voting power
of which is owned, directly or indirectly, by the Company; 
 (iii) A person, or more than one person acting as a group, that
owns, directly or indirectly, 50 percent or more of the total value or voting power of all the outstanding stock of the Company; or 

  
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	 	(iv)	An entity, at least 50 percent of the total value or voting power of which is owned, directly or indirectly, by a person described in paragraph (iii).

 Persons will not be considered to be acting as a group solely because they purchase assets of the Company at the same time, or
as a result of the same public offering; however, persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of assets, or similar business transaction
with the Company. 
 “Code” shall mean the Internal Revenue Code of 1986, as amended. 

“Company” shall mean J. C. Penney Company, Inc., the Corporation or any successor thereto, for whom the services are performed and with respect
to whom the legally binding right to compensation arises, and all persons with whom the Corporation would be considered a single employer under Code section 414(b) (employees of controlled group of corporations), and all persons with whom the
Corporation would be considered a single employer under Code section 414(c) (employees of partnerships, proprietorships, etc., under common control), using the “at least 50 percent” ownership standard, within the meaning of Code
Section 409A and Treasury Regulation section 1.409A-1(h)(3) or any successor thereto. 
 “Common Stock” shall mean the $0.50 par
value common stock of the Company. 
 “Corporation” shall mean J. C. Penney Corporation, Inc. 

“Disability” shall mean that You are totally and permanently disabled within the meaning of the Social Security Act (“Act”), provided
that You have either (a) qualified for disability insurance benefits under such Act, or (b) in the opinion of the organization that administers the Company’s disability plans, You have a disability which would entitle You to such
disability insurance benefits except for the fact that You do not have sufficient quarters of coverage or have not satisfied any age requirements under such law. 
 “Fair Market Value” of the Common Stock on any date shall be the closing price on such date as reported in the composite transaction table covering transactions of New York Stock Exchange
(“Exchange”) listed securities, or if such Exchange is closed, or if the Common Stock does not trade on such date, the closing price reported in the composite transaction table on the last trading date immediately preceding such date, or
such other amount as the Board may ascertain reasonably to represent such fair market value; provided however, that such determination shall be in accordance with the requirements of Treasury Regulation section 1.409A-1(b)(5)(iv), or its successor.

 “Good Reason” shall mean a condition resulting from any of the actions listed below taken by the Company that is directed at You
without Your consent: 
  

	 	(a)	a material decrease in Your salary or incentive compensation opportunity (the amount paid at target as a percentage of salary under the Corporation’s Management
Incentive Compensation Program or any successor program then in effect); or 

  

	 	(b)	failure by the Company to pay You a material portion of Your current base salary, or incentive compensation within seven days of its due date; or

  

	 	(c)	a material adverse change in reporting responsibilities, duties, or authority; or 

 

	 	(d)	a material diminution in the authority, duties, or responsibilities of the supervisor to whom You are required to report without a corresponding increase in Your
authority, duties or responsibilities; or 

  

	 	(e)	a requirement that You report to a corporate officer or employee other than the Chief Executive Officer of the Company; or 

 

	 	(f)	a material diminution in the budget over which You retain authority; or 

  
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	 	(g)	the Company requires You to change Your principal location of work to a location more than 50 miles from the location thereof immediately prior to such change; or

  

	 	(h)	discontinuance of any material paid time off policy, fringe benefit, welfare benefit, incentive compensation, equity compensation, or Retirement plan (without
substantially equivalent compensating remuneration or a plan or policy providing substantially similar benefits) in which You participate or any action that materially reduces Your benefits or payments under such plans; 

provided, however, that You must provide notice to the Corporation of the existence of any condition described above within 90 days of the initial
existence of the condition, upon the notice of which the Corporation shall have 30 days during which it or Company may remedy the condition. Any separation from service as a result of a Good Reason condition must occur as of the later of
(i) two years after the Change in Control, or (ii) 180 days after the initial existence of the condition described in (a) through (h) above that constitutes “Good Reason.” 

“Involuntary Separation from Service” shall mean Your separation from service due to the independent exercise of the unilateral authority of
the Company to terminate Your services, other than due to Your implicit or explicit request, where You were willing and able to continue performing services, within the meaning of Code Section 409A and Treasury Regulation section 1.409A-1(n)(1)
or any successor thereto. 
 “Summary Dismissal” shall mean a termination due to: 

 

	 	(a)	any willful or negligent material violation of any applicable securities laws (including the Sarbanes-Oxley Act of 2002); 

 

	 	(b)	any intentional act of fraud or embezzlement from the Company; 

  

	 	(c)	a conviction of or entering into a plea of nolo contendere to a felony that occurs during or in the course of Your employment with the Corporation;

  

	 	(d)	any breach of a written covenant or agreement with the Corporation, which is material and which is not cured within 30 days after written notice thereof from the
Corporation; or 

  

	 	(e)	Your willful and continued failure to substantially perform Your duties for the Corporation (other than as a result of incapacity due to physical or mental illness) or
to materially comply with Corporation or Company policy after written notice, in either case, from the Corporation and a 30-day opportunity to cure. 

 For purposes hereof, an act, or failure to act, shall not be deemed to be “willful” or “intentional” unless it is done, or omitted to be done, by You in bad faith or without a
reasonable belief that the action or omission was in the best interests of the Corporation. 
 Vesting of Your Restricted Stock Units

 The restricted stock units shall vest, and the restrictions on Your restricted stock units shall lapse, according to the following
vesting schedule, PROVIDED YOU REMAIN CONTINUOUSLY EMPLOYED BY THE COMPANY THROUGH THE VESTING DATE (unless Your employment terminates due to Your Disability, death, or if You are party to an Executive Termination Pay Agreement (“ETPA”),
an Involuntary Separation from Service without Cause as defined in the ETPA). 
  

			
	 Vesting Date
	  	Percent
Vesting
	 December 5, 2012
	  	33-1/3%
	 December 5, 2013
	  	33-1/3%
	 December 5, 2014
	  	33-1/3%

 Your vested restricted stock units shall be paid out in shares of Common Stock as soon as practicable on or following the
earlier of (i) Your termination of employment as a result of Your Disability, death, or (ii) the applicable vesting date provided in the vesting table above. Notwithstanding the foregoing, if You are a specified employee as defined
under Section 409A of the Code and the related Treasury regulations thereunder and any portion of Your restricted stock unit award is, or becomes subject to the requirements of section 409A of the Code, Your vested restricted stock units shall
be paid out in shares of Common Stock as soon as practicable following the earlier of (i) the date that is six months following Your termination of service due to Retirement, 

  
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 Disability, or job restructuring/reduction in force/unit closing, (ii) the date of Your death, or
(iii) the applicable vesting date provided in the vesting table above. You shall not be allowed to defer the payment of Your shares of Common Stock to a later date. 
 Dividend Equivalents 
 You shall not have any rights as a stockholder until Your
restricted stock units vest and You are issued shares of Common Stock in cancellation of the vested restricted stock units. You will, however, accrue dividend equivalents on the unvested restricted stock units in the amount of any quarterly dividend
declared on the Common Stock. Dividend equivalents shall continue to accrue until Your restricted stock units vest and You receive actual shares of Common Stock in cancellation of the vested restricted stock units. The dividend equivalents shall be
credited as additional restricted stock units in Your account to be paid out in shares of Common Stock on the vesting date along with the restricted stock units to which they relate. The number of additional restricted stock units to be credited to
Your account shall be determined by dividing the aggregate dividend payable with respect to the number of restricted stock units in Your account by the Fair Market Value of the Common Stock on the dividend record date. The additional restricted
stock units credited to Your account are subject to all of the terms and conditions of this restricted stock unit award and You shall forfeit Your additional restricted stock units in the event that You forfeit the restricted stock units to which
they relate. 
 Acceleration of Vesting 
 If prior to December 5, 2014 Your employment is terminated as a result of Your death or Disability, or in the event of an Involuntary Separation from Service by the Company for any reason other than
Summary Dismissal prior to December 5, 2014, then the restrictions shall lapse with respect to all unvested restricted stock units and the restricted stock units shall become fully vested and nonforfeitable on the date of any such termination
of Your employment. The number of restricted stock units to which You are entitled will be distributed as provided in “Vesting of Your Restricted Stock Units” above. 
 If following a Change in Control You terminate Your employment for Good Reason, then the restrictions shall lapse with respect to all unvested restricted stock units and the restricted stock units shall
become fully vested and nonforfeitable on the date of any such termination of Your employment. The number of restricted stock units to which You are entitled will be distributed as provided in “Vesting of Your Restricted Stock Units”
above. 
 You may designate a beneficiary to receive any shares of Common Stock in which You may vest if Your employment is terminated as a
result of Your death by completing a beneficiary designation form in such form as may be prescribed from time to time by the Company. The beneficiary listed on Your beneficiary designation form shall receive the vested shares covered by the
restricted stock unit award in the case of termination of employment due to death. 
 If Your employment terminates as a result of a Summary
Dismissal, or a voluntary resignation by You, any unvested restricted stock units shall be cancelled on the effective date of Your employment termination. 
 Recoupment 
 Equity awards are subject to the Company’s currently effective
recoupment policy, as that policy may be amended from time to time by the Board or applicable statute or regulations. Under the recoupment policy, the Human Resources and Compensation Committee of the Board may require the Company, to the
extent permitted by law, to cancel any of Your outstanding equity awards, including both vested and unvested awards, and/or to recover financial proceeds realized from the exercise of awards in the event of (i) a financial restatement arising
out of the willful actions, including without limitation fraud or intentional misconduct, or gross negligence of any participant in the Company’s compensation plans or programs, including without limitation, cash bonus and stock incentive
plans, welfare plans, or deferred compensation plans, or (ii) other events as established by applicable statute or regulations. 

Taxes and Withholding 
 The
vesting of any restricted stock units and the related issuance of shares of Common Stock shall be subject to the satisfaction of all applicable federal, state and local income and employment tax withholding requirements. Your withholding rate with
respect to this award may not be higher than the minimum statutory rate. The Company shall retain and cancel the number of issued shares equal to the value of the required minimum tax withholding in payment of the required minimum tax withholding
due or shall require that You satisfy the required minimum tax withholding, if any, or any other applicable federal, state or local income or employment tax withholding by such other means as the Company, in its sole discretion, deems reasonable.

  
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 Changes in Capitalization and Similar Changes 

In the event of any change in the number of shares of Common Stock outstanding, or the assumption and conversion of this restricted stock unit award, by
reason of any stock dividend, stock split, extraordinary cash dividend, recapitalization, reorganization, merger, consolidation, split-up, spin-off, combination or exchange of shares, an equitable and proportionate adjustment shall be made to the
number and class of shares which may be issued on vesting of the restricted stock units in this Notice. 
 Miscellaneous

  

	 	(a)	Dispute Resolution. Any dispute between the parties under this Notice shall be resolved (except as provided below) through informal arbitration by an arbitrator
selected under the rules of the American Arbitration Association for arbitration of employment disputes (located in the city in which the Company’s principal executive offices are based) and the arbitration shall be conducted in that location
under the rules of said Association. Each party shall be entitled to present evidence and argument to the arbitrator. The arbitrator shall have the right only to interpret and apply the provisions of this Notice and may not change any of its
provisions. The arbitrator shall permit reasonable pre-hearing discovery of facts, to the extent necessary to establish a claim or a defense to a claim, subject to supervision by the arbitrator. The determination of the arbitrator shall be
conclusive and binding upon the parties and judgment upon the same may be entered in any court having jurisdiction thereof. The arbitrator shall give written notice to the parties stating the arbitrator’s determination, and shall furnish to
each party a signed copy of such determination. The expenses of arbitration shall be borne equally by the Company and You or as the arbitrator equitably determines consistent with the application of state or federal law; provided, however, that Your
share of such expenses shall not exceed the maximum permitted by law. To the extent applicable, in accordance with Code section 409A and Treasury Regulation section 1.409A-3(i)(1)(iv)(A) or any successor thereto, any payments or reimbursement of
arbitration expenses which the Company is required to make under the foregoing provision shall meet the requirements below. The Company shall reimburse You for any such expenses, promptly upon delivery of reasonable documentation, provided, however,
all invoices for reimbursement of expenses must be submitted to the Company and paid in a lump sum payment by the end of the calendar year following the calendar year in which the expense was incurred. All expenses must be incurred within a 20 year
period following Your separation from service as defined in section 409A of the Code an dteh applicable Treasury regulations thereunder. The amount of expenses paid or eligible for reimbursement in one year under this Section governing the
resolution of disputes under this Notice shall not affect the expenses paid or eligible for reimbursement in any other taxable year. The right to payment or reimbursement under this Section governing the resolution of disputes under this Notice
shall not be subject to liquidation or exchange for another benefit. 

 Any arbitration or action pursuant to
this Section governing the resolution of disputes under this Notice shall be governed by and construed in accordance with the substantive laws of the State of Delaware and, where applicable, federal law, without giving effect to the principles of
conflict of laws of such State. The mandatory arbitration provisions of this Section shall supersede in their entirety the J.C. Penney Alternative, a dispute resolution program generally applicable to employment terminations. 

 

	 	(b)	No Right to Continued Employment. Nothing in this award shall confer on You any right to continue in the employ of the Company or affect in any way the
right of the Company to terminate Your employment without prior notice, at any time, for any reason, or for no reason. 

  

	 	(c)	Unsecured General Creditor. Neither You nor Your beneficiaries, heirs, successors and assigns shall have a legal or equitable right, interest or claim in any
property or assets of the Company. For purposes of the payments under this Notice, any of the Company’s assets shall remain assets of the Company and the Company’s obligation under this Notice shall be merely that of an unfunded and
unsecured promise to issue shares of Common Stock to You in the future pursuant to the terms of this Notice. 

  

	 	(d)	Transferability of Your Restricted Stock Units. The restricted stock unit granted hereunder is non-transferable. 

 

	 	(e)	Cessation of Obligation. The Company’s liability shall be defined only by this Notice. Upon distribution to You of all shares of Common Stock due under this
Notice, all responsibilities and obligations of the Company shall be fulfilled and You shall have no further claims against the Company for further performance under this Notice. 

  
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	 	(f)	Effect on Other Benefits. The value of the shares of Common Stock covered by this restricted stock unit award shall not be included as compensation or earnings
for purposes of any other compensation, Retirement, or benefit plan offered to Company associates. 

  

	 	(g)	Administration. This Notice shall be administered by the Board, or its designee. The Board, or its designee, has full authority and discretion to decide all
matters relating to the administration and interpretation of this Notice. The Board’s, or its designee’s, determinations shall be final, conclusive, and binding on You and Your heirs, legatees and designees. 

 

	 	(h)	Entire Notice and Governing Law. This Notice constitutes the entire agreement between You and the Company with respect to the subject matter hereof and
supersedes in its entirety all prior undertakings and agreements between You and the Company with respect to the subject matter hereof, and may not be modified adversely to Your interest except by means of a writing signed by the You and the
Company. Nothing in this Notice (except as expressly provided herein) is intended to confer any rights or remedies on any person other than You and the Company. This restricted stock unit award shall be governed by the internal laws of the State of
Delaware, regardless of the dictates of Delaware conflict of laws provisions. 

  

	 	(i)	Interpretive Matters. The captions and headings used in this Notice are inserted for convenience and shall not be deemed a part of the award or this Notice for
construction or interpretation. 

  

	 	(j)	Notice. For all purposes of this Notice, all communications required or permitted to be given hereunder shall be in writing and shall be deemed to have been duly
given when hand delivered or dispatched by electronic facsimile transmission (with receipt thereof confirmed), or five business days after having been mailed by United States registered or certified mail, return receipt requested, postage prepaid,
or three business days after having been sent by a nationally recognized overnight courier service, addressed to the Company at its principal executive office, c/o the Company’s General Counsel, and to You at Your principal residence, or to
such other address as any party may have furnished to the other in writing and in accordance herewith, except that notices of change of address shall be effective only on receipt. 

 

	 	(k)	Severability and Reformation. The Company intends all provisions of this Notice to be enforced to the fullest extent permitted by law. Accordingly, should a
court of competent jurisdiction determine that the scope of any provision of this Notice is too broad to be enforced as written, the court should reform the provision to such narrower scope as it determines to be enforceable. If, however, any
provision of this Notice is held to be wholly illegal, invalid, or unenforceable under present or future law, such provision shall be fully severable and severed, and this Notice shall be construed and enforced as if such illegal, invalid, or
unenforceable provision were never a part hereof, and the remaining provisions of this Notice shall remain in full force and effect and shall not be affected by the illegal, invalid, or unenforceable provision or by its severance.

  

	 	(l)	Counterparts. This Notice may be executed in several counterparts, each of which shall be deemed to be an original, but all of which together shall constitute
one and the same Notice. 

  

	 	(m)	Amendments; Waivers. This Notice may not be modified, amended, or terminated except by an instrument in writing, approved by the Company and signed by You and
the Company. Failure on the part of either party to complain of any action or omission, breach or default on the part of the other party, no matter how long the same may continue, shall never be deemed to be a waiver of any rights or remedies
hereunder, at law or in equity. The Executive or the Company may waive compliance by the other party with any provision of this Notice that such other party was or is obligated to comply with or perform only through an executed writing; provided,
however, that such waiver shall not operate as a waiver of, or estoppel with respect to, any other or subsequent failure. 

  

	 	(n)	No Inconsistent Actions. The parties hereto shall not voluntarily undertake or fail to undertake any action or course of action that is inconsistent with the
provisions or essential intent of this Notice. Furthermore, it is the intent of the parties hereto to act in a fair and reasonable manner with respect to the interpretation and application of the provisions of this Notice. 

  
 6EX-10.35

 Exhibit 10.35 
 SECOND AMENDMENT TO 
 EMPLOYMENT AGREEMENT 

THIS SECOND AMENDMENT TO EMPLOYMENT AGREEMENT (this “Second Amendment”), is entered into as of March 26, 2012, by
and between Opnext, Inc., a Delaware corporation (the “Company”) and Harry L. Bosco (“Executive”). Capitalized terms used and not otherwise defined herein shall have the meanings ascribed to such terms in the
Employment Agreement (as defined below). 
 WHEREAS, the Company and Executive have entered into that certain Employment
Agreement dated as of January 26, 2011, as amended by the first amendment thereto (the “Employment Agreement”), which sets forth the terms and conditions of Executive’s employment by the Company; and 

WHEREAS, the Company and Executive mutually desire to amend the Employment Agreement as set forth in this Second Amendment. 

NOW, THEREFORE, in consideration of the premises set forth herein and for other good and valuable consideration, the receipt and adequacy
of which is hereby acknowledged, the Company and Executive hereby amend the Employment Agreement as follows, effective as of the date hereof: 
 1. Section 5 of the Employment Agreement is hereby amended and restated in its entirety as follows: 
  

			
	 “5.    Annual Bonus 
	  	Executive will be eligible to participate in the Company’s annual incentive bonus plan applicable to similarly situated executives of the Company. The amount of
Executive’s annual bonus will be based on the attainment of individual and/or Company performance criteria established and evaluated by the Company in accordance with the terms of such bonus plan as in effect from time to time, provided that,
subject to the terms of such bonus plan, Executive’s target annual bonus will be 100% of his Base Salary. Each annual bonus shall be awarded under, and subject to the terms and conditions of, the Plan (as defined below), and, if payable, shall
be paid not later than the last day of the applicable two and one-half (2 1⁄2) month short-term deferral period with respect to such payment, within the meaning of Treasury Regulation Section 1.409A-1(b)(4).” 

  
 2. Section 11 of the Employment
Agreement is hereby amended and restated in its entirety as follows: 
  

			
	 “11. Termination Without Cause Or For Good Reason
	  	Subject to the Payment Delay (as defined below), in the event that Executive incurs a “separation from service” (within the meaning of Section 409A(a)(2)(A)(i) of the
Internal Revenue Code of 1986, as amended (the “Code”), and Treasury Regulation Section 1.409A-1(h)) (a “Separation from Service”) by reason of (a) a termination of Executive’s employment by the Company without
Cause (as defined below) or (b) Executive’s resignation for Good Reason (as defined below), Executive shall be entitled to receive the following payments and benefits (collectively, the “Severance”):

  

	 	(i)	The Company shall pay Executive as severance a lump-sum cash payment within thirty (30) days after the date of Executive’s Separation from Service an amount
equal to one and one-half (1.5) times the sum of (A) Executive’s then current annual base salary and (B) Executive’s target Annual Bonus set forth in Section 5 above (as may be increased) for the fiscal year of the Company
in which the date of such Separation from Service occurs (in each case, without giving effect to any reduction in such base salary or target Annual Bonus that constitutes Good Reason) (the “Severance Payment”);

	 	(ii)	To the extent not previously vested and exercisable as of the date of Executive’s Separation from Service, any outstanding equity-based awards (including stock
options and other equity-based awards) held by Executive shall immediately vest and become exercisable in full; and 

  

	 	(iii)	During the period commencing on the date of Executive’s Separation from Service and ending on the eighteen (18) month anniversary thereof (the
“Continuation Period”), the Company shall pay directly or reimburse Executive for premiums for continued group health insurance coverage for Executive and his eligible family members under the Company’s group health plans.
Notwithstanding the foregoing, (A) if any plan pursuant to which the Company is providing such coverage is not, or ceases prior to the expiration of the Continuation Period to be, exempt from the application of Code Section 409A under
Treasury Regulation Section 1.409A-1(a)(5), or (B) the Company is otherwise unable to continue to cover Executive under its group health plans, then, in either case, an amount equal to the monthly plan premium payment shall thereafter be
paid to Executive as currently taxable compensation in substantially equal monthly installments over the Continuation Period (or the remaining portion thereof). 

 Executive’s right to receive the Severance is conditioned on and subject to Executive’s execution within 21 days (or, to the extent required by applicable law, 45 days) following the date of
Executive’s Separation from Service and non-revocation by Executive of a general release of claims substantially in the form attached hereto as Exhibit A. For purposes of clarification, a termination of Executive’s employment by
reason of Executive’s death or Disability (as defined in Section 6 hereof) shall not be deemed to be a termination by the Company “without Cause” for purposes of this Agreement. Notwithstanding the foregoing, in no event shall a
termination of Executive’s employment by reason of the Board’s appointment of a Chief Executive Officer and President of Opnext to succeed Executive or by reason of the expiration of the Term be deemed to constitute a termination of
Executive’s employment by the Company without Cause. 
 The Severance Payment is intended to satisfy
the short-term deferral exemption under Treasury Regulation Section 1.409A-1(b)(4) and shall be made not later than the last day of the applicable two and one-half (2  1/2) month short-term deferral period with respect to such payment,
within the meaning of Treasury Regulation Section 1.409A-1(b)(4). 

  
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 “Good Reason” as used herein shall mean the occurrence of any of the following
without the consent of Executive: 
  

	 	(i)	a material and substantial diminution of Executive’s authority, duties or responsibilities; or 

 

	 	(ii)	a material reduction by Opnext of Executive’s Base Salary as set forth in Section 4 above; 

provided, however, that Executive’s resignation shall only constitute a resignation for Good Reason hereunder if
(x) Executive provides the Company with written notice setting forth the specific facts or circumstances constituting Good Reason within 20 days after the initial existence of such facts or circumstances, (y) the Company has failed to cure
such facts or circumstances within 30 days after receipt of such written notice, and (z) the date of Executive’s Separation from Service occurs no later than 60 days after the initial occurrence of the facts or circumstances constituting
Good Reason. 
 Except as set forth above, upon termination by Opnext without Cause or resignation by Executive for Good
Reason, Executive shall not be entitled to receive any further compensation or payments hereunder (except for Executive’s unpaid Base Salary, accrued vacation and expense reimbursements relating to the period prior to the date of termination of
employment). 
 Notwithstanding anything to the contrary in this Agreement, no compensation or benefits, including without
limitation, the Severance Payment, shall be paid to Executive during the six-month period following Executive’s Separation from Service if the Company determines that paying such amounts at the time or times indicated in this Agreement would be
a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code. If the payment of any such amounts is delayed as a result of the previous sentence (the “Payment Delay”), then on the first business day following the end of
such six-month period (or such earlier date upon which such amount can be paid under Section 409A of the Code without resulting in a prohibited distribution, including as a result of Executive’s death), the Company shall pay Executive a
lump-sum amount equal to the cumulative amount that would have otherwise been payable to Executive during such six-month period.” 

  
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 3. The following new Section 11A of the Employment Agreement is hereby added
immediately after Section 11 of the Employment Agreement: 
  

			
	 “11A. Change in Control Termination
	  	Subject to the Payment Delay, if a Change in Control occurs and Executive incurs a Separation from Service by reason of (a) a termination of Executive’s employment by the
Company without Cause or (b) Executive’s resignation for Good Reason, in each case immediately prior to or upon the Change in Control, or within the two (2) year period following the Change in Control, then Executive shall be entitled to the
Severance, subject to and in accordance with the terms and conditions set forth in Section 11 (including, without limitation, the requirement that Executive execute and not revoke the Release), except that for purposes of this Section
11A:

  

	 	(i)	In lieu of the Severance Payment set forth in Section 11, the Severance Payment shall be an amount equal to two (2.0) times the sum of
(A) Executive’s then current annual base salary and (B) the greater of (x) Executive’s target Annual Bonus set forth in Section 5 above (as may be increased) for the fiscal year of the Company in which the date of
Executive’s Separation from Service occurs (in each case, without giving effect to any reduction in such base salary or target Annual Bonus that constitutes Good Reason) or (y) the average actual Annual Bonus awarded to Executive for the
two full fiscal years immediately preceding the year in which the date of Executive’s Separation from Service occurs; and 

  

	 	(ii)	In lieu of the Continuation Period set forth in Section 11, the Continuation Period shall be the period commencing on the date of Executive’s Separation from
Service and ending on the twenty-four (24) month anniversary thereof.” 

 4. The following new
Section 20 of the Employment Agreement is hereby added immediately after Section 19 of the Employment Agreement: 
  

			
	 “20. Limitation on Payments
	  	Notwithstanding any other provisions of this Agreement, in the event that any payment or benefit received or to be received by Executive, whether pursuant to the terms of this
Agreement or any other plan, arrangement or agreement (all such payments and benefits being hereinafter referred to as the “Total Payments”), would be subject (in whole or part), to the

  
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 excise tax imposed under Section 4999 of the Code (the “Excise Tax”),
then, after taking into account any reduction in the Total Payments provided by reason of Section 280G of the Code in such other plan, arrangement or agreement, the Total Payments shall be reduced as set forth herein, to the extent necessary so
that no portion of the Total Payments is subject to the Excise Tax but only if, by reason of such reduction, the net amount of such Total Payments, as so reduced (and after subtracting the net amount of federal, state and local income taxes on such
reduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such reduced Total Payments) is greater than or equal to the net amount of such Total Payments without such reduction
(but after subtracting the net amount of federal, state and local income taxes on such Total Payments and the amount of Excise Tax to which Executive would be subject in respect of such unreduced Total Payments and after taking into account the
phase out of itemized deductions and personal exemptions attributable to such unreduced Total Payments). The Total Payments shall be reduced in the following order: (A) reduction of any cash severance payments otherwise payable to Executive
that are exempt from Section 409A of the Code, (B) reduction of any other cash payments or benefits otherwise payable to Executive that are exempt from Section 409A of the Code, (C) reduction of any payments attributable to the
acceleration of vesting or payment with respect to any stock options that are exempt from Section 409A of the Code, (D) reduction of any payments attributable to the acceleration of vesting or payment with respect to any equity award
(other than stock options) that is exempt from Section 409A of the Code, and (E) reduction of any other payments or benefits otherwise payable to Executive on a pro-rata basis or such other manner that complies with Section 409A of
the Code, in each case, (x) only to the least extent necessary so that no portion thereof shall be subject to the Excise Tax, (y) in a manner that results in the best economic benefit to Executive, and (z) to the extent economically
equivalent, in a pro rata manner. 
 For purposes of determining whether and the extent to which the Total Payments will be
subject to the Excise Tax, (i) no portion of the Total Payments the receipt or enjoyment of which Executive shall have waived at such time and in such manner as not to constitute a “payment” within the meaning of Section 280G(b)
of the Code shall be taken into account, (ii) no portion of the Total Payments shall be taken into account which, in the opinion of the Accounting Firm (as defined below), does not constitute a “parachute payment” within the

  
 5 

 
meaning of Section 280G(b)(2) of the Code (including by reason of Section 280G(b)(4)(A) of the Code) and, in calculating the Excise Tax, no portion of such Total Payments shall be taken
into account which, in the opinion of the Accounting Firm, constitutes reasonable compensation for services actually rendered, within the meaning of Section 280G(b)(4)(B) of the Code, in excess of the Base Amount (as defined in
Section 280G(b)(3) of the Code) allocable to such reasonable compensation, and (iii) the value of any non cash benefit or any deferred payment or benefit included in the Total Payments shall be determined by the Accounting Firm in
accordance with the principles of Sections 280G(d)(3) and (4) of the Code. 
 All determinations required to be made under
this Section 20 will be made by an independent nationally recognized accounting firm (the “Accounting Firm”) selected by Executive and reasonably acceptable to the Company. The Accounting Firm will be directed to submit its
determination and detailed supporting calculations to both Executive and the Company within fifteen (15) days after notification from either the Company or Executive that Executive may receive payments which may be “parachute
payments.” Executive and the Company will each provide the Accounting Firm access to and copies of any books, records, and documents in their possession as may be reasonably requested by the Accounting Firm, and otherwise cooperate with the
Accounting Firm in connection with the preparation and issuance of the determinations and calculations contemplated by this Section 20. The fees and expenses of the Accounting Firm for its services in connection with the determinations and
calculations contemplated by this Section 20 will be borne by the Company.” 
 5. This Second Amendment shall be and
is hereby incorporated in and forms a part of the Employment Agreement. 
 6. Except as amended and set forth herein, the
Employment Agreement shall continue in full force and effect. 
 [Signature Page Follows] 

  
 6 

 IN WITNESS WHEREOF, this Second Amendment has been executed and delivered by the parties
hereto. 
  

							
	OPNEXT, INC.	  		  	EXECUTIVE
				
	By:	 	/s/ Justin O’Neill	  		  	/s/ Harry L. Bosco
		 		  		  	(Signature)
				
	Its:	 	Senior Vice President, General Counsel & Corporate Secretary	  		  	Harry L. Bosco
		 		  		  	(Print Name)

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