Document:

exv10w6

 

Exhibit 10.6

Bookham, Inc.

Restricted Stock Agreement

Granted Under 2004 Stock Incentive Plan

     AGREEMENT made February 9, 2005, between Bookham, Inc., a Delaware corporation (the
“Company”), and Stephen Abely (the “Participant”).

     For valuable consideration, receipt of which is acknowledged, the parties hereto agree as
follows:

     1. Issuance of Shares; Forfeiture of Options.

          (a) The Company shall issue to the Participant, subject to the terms and conditions set forth
in this Agreement and in the Company’s 2004 Stock Incentive Plan (the “Plan”), 102,450
shares (the “Shares”) of common stock, $0.01 par value, of the Company (“Common
Stock”). The Shares will be held in book entry by the Company’s transfer agent in the name of
the Participant for that number of Shares issued to the Participant. The Participant agrees that
the Shares shall be subject to the forfeiture provisions set forth in Section 2 of this Agreement
and the restrictions on transfer set forth in Section 4 of this Agreement.

          (b) In consideration for the issuance of the Shares, the Participant shall surrender to the
Company for cancellation all of the options which were previously granted by the Company to the
Participant. Upon surrender, the options will be cancelled and will be of no further force or
effect and the Participant shall have no further rights with respect to such options. The Company
shall have no obligation to issue the Shares unless and until the Participant surrenders the
options. The options surrendered by the Participant are set forth in Exhibit A.

     2. Vesting.

          (a) The Shares shall vest and become free from the forfeiture provisions in Section 2(b)
hereof and become free from the transfer restrictions in Section 4 hereof on the earlier of:

               (1) the one-year anniversary of the date hereof, provided that (A) the Participant has been
continuously employed by the Company between the date hereof and such anniversary, (B) on or before
such anniversary, the Company has filed on a timely basis any report required pursuant to Item 308
of Regulation S-K and (C) on such anniversary the Company does not have any material weakness that
has not been remedied to the satisfaction of the Audit Committee of the Company’s Board of
Directors and the Company’s independent auditors; or

               (2) the termination of the Participant’s employment with the Company by the Company without
Cause or by the Participant for Good Reason. As used herein, “Cause” means any (i) willful
failure by the Participant, which failure is not cured within 30 days of
written notice to the Participant from the Company, to perform his or her material

 

 

responsibilities to the Company or (ii) willful misconduct by the Participant that affects the
business reputation of the Company. As used herein, Good Reason” means any significant
diminution in the Participant’s title, authority or responsibilities, or any reduction in the
annual cash compensation payable to the Participant.

          (b) In the event that the Shares do not vest in accordance with Section 2(a) on or before the
one-year anniversary of the date hereof, then on such anniversary, all of the Shares shall be
forfeited immediately and automatically to the Company and the Participant shall have no further
rights with respect to such Shares.

          (c) In the event that the Participant’s employment with the Company is terminated by reason of
the Participant’s death or disability prior to the one-year anniversary of the date hereof, all of
the Shares shall be forfeited immediately and automatically. For this purpose, “disability” shall
mean the inability of the Participant, due to a medical reason, to carry out his duties as an
employee of the Company for a period of six consecutive months.

          (d) Notwithstanding anything herein to the contrary, upon the consummation of a Change in
Control of the Company (as defined in Exhibit B), the performance conditions contained in Sections
1(a)(1)(B) and 1(a)(1)(C) shall be deemed to be satisfied.

          (e) For purposes of this Agreement, employment with the Company shall include employment with
a parent or subsidiary of the Company, or any successor to the Company.

     3. Automatic Sale Upon Vesting.

          (a) Upon any vesting of Shares pursuant to Section 2 hereof, the Company shall sell, or
arrange for the sale of, such number of the Shares no longer subject to forfeiture under Section 2
as is sufficient to generate net proceeds sufficient to satisfy the Company’s minimum statutory
withholding obligations with respect to the income recognized by the Participant upon the lapse of
the forfeiture provisions (based on minimum statutory withholding rates for all tax purposes,
including payroll and social security taxes, that are applicable to such income), and the Company
shall retain such net proceeds in satisfaction of such tax withholding obligations.

          (b) The Participant hereby appoints the General Counsel and Company Secretary his attorney in
fact to sell the Participant’s Shares in accordance with this Section 3. The Participant agrees to
execute and deliver such documents, instruments and certificates as may reasonably be required in
connection with the sale of the Shares pursuant to this Section 3.

          (c) The Participant represents to the Company that, as of the date hereof, he is not aware of
any material nonpublic information about the Company or the Common Stock. The Participant and the
Company have structured this Agreement to constitute a “binding contract” relating to the sale of
Common Stock pursuant to this Section 3, consistent with the affirmative defense to liability under
Section 10(b) of the Securities Exchange Act of 1934 under Rule 10b5-1(c) promulgated under such
Act.

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     4. Restrictions on Transfer.

          (a) The Participant shall not sell, assign, transfer, pledge, hypothecate or otherwise dispose
of, by operation of law or otherwise (collectively “transfer”) any Shares, or any interest
therein, until such Shares have vested, except that the Participant may transfer such Shares (i) to
or for the benefit of any spouse, children, parents, uncles, aunts, siblings, grandchildren and any
other relatives approved by the Board of Directors (collectively, “Approved Relatives”) or
to a trust established solely for the benefit of the Participant and/or Approved Relatives,
provided that such Shares shall remain subject to this Agreement (including without
limitation the restrictions on transfer set forth in this Section 4 and the forfeiture provisions
contained in Section 2) and such permitted transferee shall, as a condition to such transfer,
deliver to the Company a written instrument confirming that such transferee shall be bound by all
of the terms and conditions of this Agreement or (ii) as part of the sale of all or substantially
all of the shares of capital stock of the Company (including pursuant to a merger or
consolidation), provided that, in accordance with the Plan and except as otherwise provided
herein, the securities or other property received by the Participant in connection with such
transaction shall remain subject to this Agreement.

          (b) The Company shall not be required (i) to transfer on its books any of the Shares which
have been transferred in violation of any of the provisions set forth in this Agreement or (ii) to
treat as owner of such Shares or to pay dividends to any transferee to whom such Shares have been
transferred in violation of any of the provisions of this Agreement.

     5. Restrictive Legends.

     All Shares subject to this Agreement subject to the following restriction, in addition to any
other legends that may be required under federal or state securities laws:

“The shares of stock represented by this certificate are subject to
forfeiture provisions and restrictions on transfer set forth in a
certain Restricted Stock Agreement between the corporation and the
registered owner of these shares (or his predecessor in interest),
and such Agreement is available for inspection without charge at the
office of the Secretary of the corporation.”

     6. Provisions of the Plan.

     This Agreement is subject to the provisions of the Plan, a copy of which is furnished to the
Participant with this Agreement.

     7. Withholding Taxes; Section 83(b) Election.

          (a) The Participant acknowledges and agrees that the Company has the right to deduct from
payments of any kind otherwise due to the Participant any federal, state, local or other taxes of
any kind required by law to be withheld with respect to the issuance of the Shares to the
Participant or the lapse of the forfeiture provisions.

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          (b) The Participant has reviewed with the Participant’s own tax advisors the federal, state,
local and other tax consequences of this investment and the transactions contemplated by this
Agreement. The Participant is relying solely on such advisors and not on any statements or
representations of the Company or any of its agents. The Participant understands that the
Participant (and not the Company) shall be responsible for the Participant’s own tax liability that
may arise as a result of this investment or the transactions contemplated by this Agreement.

          THE PARTICIPANT AGREES NOT TO FILE AN ELECTION UNDER SECTION 83(B) OF THE INTERNAL REVENUE
CODE WITH RESPECT TO THE ISSUANCE OF THE SHARES.

     8. Miscellaneous.

          (a) No Rights to Employment. The Participant acknowledges and agrees that the vesting
of the Shares pursuant to Section 2 hereof is earned only by satisfaction of the performance
conditions and continuing service as an employee at the will of the Company (not through the act of
being hired or being granted the Shares hereunder). The Participant further acknowledges and
agrees that the transactions contemplated hereunder and the vesting schedule set forth herein do
not constitute an express or implied promise of continued engagement as an employee for the vesting
period, for any period, or at all.

          (b) Severability. The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision of this Agreement,
and each other provision of this Agreement shall be severable and enforceable to the extent
permitted by law.

          (c) Waiver. Any provision for the benefit of the Company contained in this Agreement
may be waived, either generally or in any particular instance, by the Board of Directors of the
Company.

          (d) Binding Effect. This Agreement shall be binding upon and inure to the benefit of
the Company and the Participant and their respective heirs, executors, administrators, legal
representatives, successors and assigns, subject to the restrictions on transfer set forth in
Section 4 of this Agreement.

          (e) Notice. Each notice relating to this Agreement shall be in writing and delivered
in person or by first class mail, postage prepaid, to the address as hereinafter provided. Each
notice shall be deemed to have been given on the date it is received. Each notice to the Company
shall be addressed to it at its offices at Caswell, Towchester, Northhamptonshire NN12 8EQ, United
Kingdom (Attention: General Counsel and Company Secretary). Each notice to the Participant shall
be addressed to the Participant at the Participant’s last known address.

          (f) Pronouns. Whenever the context may require, any pronouns used in this Agreement
shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns
and pronouns shall include the plural, and vice versa.

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          (g) Entire Agreement. This Agreement and the Plan constitute the entire agreement
between the parties, and supersede all prior agreements and understandings, relating to the subject
matter of this Agreement.

          (h) Amendment. This Agreement may be amended or modified only by a written instrument
executed by both the Company and the Participant.

          (i) Governing Law. This Agreement shall be construed, interpreted and enforced in
accordance with the internal laws of the State of Delaware without regard to any applicable
conflicts of laws.

          (j) Interpretation. The interpretation and construction of any terms or conditions of
the Plan, or of this Agreement or other matters related to the Plan by the Compensation Committee
of the Board of Directors of the Company shall be final and conclusive.

          (k) Participant’s Acknowledgments. The Participant acknowledges that he or she: (i)
has read this Agreement; (ii) has been represented in the preparation, negotiation, and execution
of this Agreement by legal counsel of the Participant’s own choice or has voluntarily declined to
seek such counsel; (iii) understands the terms and consequences of this Agreement; (iv) is fully
aware of the legal and binding effect of this Agreement; and (v) understands that the law firm of
Wilmer Cutler Pickering Hale and Dorr LLP is acting as counsel to the Company in connection with
the transactions contemplated by the Agreement, and is not acting as counsel for the Participant.

          (l) Delivery of Certificates. Subject to Section 3, the Participant may request that
the Company deliver the Shares in certificated form with respect to any Shares that have ceased to
be subject to forfeiture pursuant to Section 2.

          (m) No Deferral. Notwithstanding anything herein to the contrary, neither the Company
nor the Participant may defer the delivery of the Shares.

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     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first above written.

	 	 	 	 	 
	 	 	BOOKHAM, INC.
	 
	 	 	 	 
	

	 	By :
	 	    /s/ Peter Bordui
	

	 	 	 	 
	

	 	 	 	  Name: Peter Bordui
	

	 	 	 	  Title: Chairman of the Board

	 	 	 	 	 
	 	 	    /s/ Stephen Abely
	 	 	 
	 	 	Stephen Abely
	 
	 	 	 	 
	

	 	Address:	 	 
	

	 	 	 	 
	 
	 	 	 	 
	

	 	 	 	 

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EXHIBIT A

     The Participant shall surrender the options to purchase 263,770 shares of the Company’s common
stock which constitute his entire holding of stock options in the Company.

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EXHIBIT B

     As used herein, “Change in Control” shall mean:

     (i) the sale of all or substantially all of the assets of the Company;

     (ii) a merger, consolidation, reorganization, recapitalization or share exchange involving the
Company with any corporation where, as a result of the transaction, the voting securities of the
Company outstanding immediately prior thereto do not continue to represent (either by remaining
outstanding or by being converted into voting securities of the surviving entity including the
holding company of such entity) more than fifty percent (50%) of the total voting power represented
by the voting securities of the Company or such surviving entity immediately after such
transaction;

     (iii) the sale, transfer or disposition of any shares of the Company’s stock to any person or
group of persons resulting in that person or persons holding more than fifty percent (50%) of the
Company’s total voting securities; or

     (iv) any change in the composition of the Board of Directors of the Company such that the
Continuing Directors (as defined below) cease to constitute a majority of the Board. “Continuing
Directors” shall mean those directors appointed to the Board who (a) are members of the Board of
Directors on the date hereof or (b) are nominated or elected subsequent to the date hereof by at
least a majority of the directors who were Continuing Directors at the time of any such nomination
or election or whose election to the Board was recommended or endorsed by at least a majority of
the directors who were Continuing Directors at the time of such nomination or election; provided
that a director shall not be a Continuing Director where the director’s initial assumption of
office occurred as a result of an actual or threatened election contest with respect to the
election or removal of directors or other actual or threatened solicitation of proxies or contests
by or on behalf of a person other than the Board.

 -8-exv10w7

 

Exhibit 10.7

Bookham, Inc.

Retention Bonus Agreement

     AGREEMENT made February 9 2005, between Bookham, Inc., a Delaware corporation (the
“Company”), and Giorgio Anania (the “Participant”).

     For valuable consideration, receipt of which is acknowledged, the parties hereto agree as
follows:

     1. Bonus Payment.

          (a) The Company shall pay to the Participant, subject to the terms and conditions set forth in
this Agreement, a cash bonus payment in the amount of GB£240,000 (the “Bonus Amount”) on the
earlier of (i) the one-year anniversary of the date hereof, provided that the Participant has been
continuously employed by the Company between the date hereof and such anniversary, or (ii) the
termination of the Participant’s employment with the Company by the Company without Cause or by the
Participant for Good Reason. As used herein, “Cause” means any (i) willful failure by the
Participant, which failure is not cured within 30 days of written notice to the Participant from
the Company, to perform his or her material responsibilities to the Company or (ii) willful
misconduct by the Participant that affects the business reputation of the Company. As used herein,
Good Reason” means any significant diminution in the Participant’s title, authority or
responsibilities, or any reduction in the annual cash compensation payable to the Participant. In
the event that neither of the conditions specified in the first sentence of this Section 1(a) is
satisfied on or before the one-year anniversary of the date hereof, the Company shall have no
obligation to pay the Bonus Amount to the Participant.

          (b) In the event that the Participant’s employment with the Company is terminated by reason of
the Participant’s death or disability prior to the one-year anniversary of the date hereof, the
Company shall have no obligation to pay the Bonus Amount to the Participant or his or her estate.
For this purpose, “disability” shall mean the inability of the Participant, due to a medical
reason, to carry out his or her duties as an employee of the Company for a period of six
consecutive months.

          (c) The Bonus Amount may be payable, at the option of the Company, in cancellation of all or a
portion of any outstanding indebtedness of the Participant to the Company or in cash (by check) or
both.

          (d) For purposes of this Agreement, employment with the Company shall include employment with
a parent or subsidiary of the Company, or any successor to the Company.

     2. Change in Control. Notwithstanding anything herein to the contrary, upon the
consummation of a Change in Control of the Company (as defined in Exhibit A), this Agreement shall
terminate and be of no further force or effect.

 

 

     3. Withholding Taxes. The Participant acknowledges and agrees that the Company has
the right to deduct from the Bonus Amount any federal, state, local or other taxes of any kind
required by law to be withheld with respect to the payment of such amount.

     4. Miscellaneous.

          (a) No Rights to Employment. The Participant acknowledges and agrees that the payment
of the Bonus Amount is earned only by continuing service as an employee at the will of the Company
(not through the act of being hired or entering into this Agreement). The Participant further
acknowledges and agrees that this Agreement does not constitute an express or implied promise of
continued engagement as an employee or consultant for the one-year vesting period, for any period,
or at all.

          (b) Severability. The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision of this Agreement,
and each other provision of this Agreement shall be severable and enforceable to the extent
permitted by law.

          (c) Waiver. Any provision for the benefit of the Company contained in this Agreement
may be waived, either generally or in any particular instance, by the Board of Directors of the
Company.

          (d) Binding Effect. This Agreement shall be binding upon and inure to the benefit of
the Company and the Participant and their respective heirs, executors, administrators, legal
representatives, successors and assigns.

          (e) Notice. Each notice relating to this Agreement shall be in writing and delivered
in person or by first class mail, postage prepaid, to the address as hereinafter provided. Each
notice shall be deemed to have been given on the date it is received. Each notice to the Company
shall be addressed to it at its offices at 2584 Junction Avenue, San Jose, CA 95134 (Attention:
Company Secretary). Each notice to the Participant shall be addressed to the Participant at the
Participant’s last known address.

          (f) Pronouns. Whenever the context may require, any pronouns used in this Agreement
shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns
and pronouns shall include the plural, and vice versa.

          (g) Entire Agreement. This Agreement constitutes the entire agreement between the
parties, and supersedes all prior agreements and understandings, relating to the subject matter of
this Agreement.

          (h) Amendment. This Agreement may be amended or modified only by a written instrument
executed by both the Company and the Participant.

          (i) Governing Law. This Agreement shall be construed, interpreted and enforced in
accordance with the internal laws of the State of Delaware without regard to any applicable
conflicts of laws.

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          (j) Interpretation. The interpretation and construction of any terms of this
Agreement by the Compensation Committee of the Board of Directors of the Company shall be final and
conclusive.

          (k) Participant’s Acknowledgments. The Participant acknowledges that he or she: (i)
has read this Agreement; (ii) has been represented in the preparation, negotiation, and execution
of this Agreement by legal counsel of the Participant’s own choice or has voluntarily declined to
seek such counsel; (iii) understands the terms and consequences of this Agreement; (iv) is fully
aware of the legal and binding effect of this Agreement; and (v) understands that the law firm of
Wilmer Cutler Pickering Hale and Dorr LLP is acting as counsel to the Company in connection with
the transactions contemplated by the Agreement, and is not acting as counsel for the Participant.

          (l) No Deferral. Notwithstanding anything herein to the contrary, neither the Company
nor the Participant may defer the delivery of the Bonus Amount.

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     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first above written.

	 	 	 	 	 
	 	BOOKHAM, INC.

 	 
	 	By:  	/s/ Peter Bordui
 	 
	 	 	Name:  	Peter Bordui 	 
	 	 	Title:  	Chairman of the Board 	 
	 

	 	 	 	 	 	 	 
	

	 	/s/ Giorgio Anania	 
	

	 	

	 
	

	 	Giorgio Anania	 
	

	 	Address:
	 	[_____________________]	 	 
	

	 	 	 	[_____________________]	 	 

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EXHIBIT A

     As used herein, “Change in Control” shall mean:

     (i) the sale of all or substantially all of the assets of the Company;

     (ii) a merger, consolidation, reorganization, recapitalization or share exchange involving the
Company with any corporation where, as a result of the transaction, the voting securities of the
Company outstanding immediately prior thereto do not continue to represent (either by remaining
outstanding or by being converted into voting securities of the surviving entity including the
holding company of such entity) more than fifty percent (50%) of the total voting power represented
by the voting securities of the Company or such surviving entity immediately after such
transaction;

     (iii) the sale, transfer or disposition of any shares of the Company’s stock to any person or
group of persons resulting in that person or persons holding more than fifty percent (50%) of the
Company’s total voting securities; or

     (iv) any change in the composition of the Board of Directors of the Company such that the
Continuing Directors (as defined below) cease to constitute a majority of the Board. “Continuing
Directors” shall mean those directors appointed to the Board who (a) are members of the Board of
Directors on the date hereof or (b) are nominated or elected subsequent to the date hereof by at
least a majority of the directors who were Continuing Directors at the time of any such nomination
or election or whose election to the Board was recommended or endorsed by at least a majority of
the directors who were Continuing Directors at the time of such nomination or election; provided
that a director shall not be a Continuing Director where the director’s initial assumption of
office occurred as a result of an actual or threatened election contest with respect to the
election or removal of directors or other actual or threatened solicitation of proxies or contests
by or on behalf of a person other than the Board.

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