Document:

Exhibit 10.1

 

AMPHENOL CORPORATION

 

SECOND AMENDMENT TO CREDIT
AGREEMENT

 

This SECOND
AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is dated as of November 10, 2004 and entered into
by and among AMPHENOL CORPORATION, a Delaware
corporation (“Company”), THE
FINANCIAL INSTITUTIONS LISTED ON THE SIGNATURE PAGES HEREOF (each
individually referred to herein as a “Lender” and
collectively as “Lenders”), DEUTSCHE
BANK TRUST COMPANY AMERICAS, as administrative agent for Lenders (in
such capacity, “Administrative Agent”),
and solely for purpose of Section 2 hereof, the Credit Support Parties (as
defined in Section 2 hereof), and is made with reference to that certain Credit
Agreement, dated as of May 6, 2003, as amended by that certain First
Amendment dated as of November 6, 2003, by and among Company, Lenders and
Administrative Agent (as so amended, the “Credit
Agreement”).  Capitalized
terms used herein without definition shall have the same meanings herein as set
forth in the Credit Agreement.

 

RECITALS

 

WHEREAS, Company
desires to amend the Credit Agreement on, and subject to, the terms, conditions
and agreements set forth herein, to create a new class of Tranche B2 Term Loans
(the “Tranche B2 Term Loans”)
having identical terms with, having the same rights and obligations under the
Loan Documents as, and in the same aggregate principal amount as, the
outstanding Tranche B1 Term Loans, as set forth in the Loan Documents, except
as such terms are amended hereby;

 

WHEREAS,
on the Second Amendment Effective Date (as hereinafter defined), the
outstanding Tranche B1 Term Loans will be converted into, or repaid in full
with the proceeds of, the Tranche B2 Term Loans;

 

WHEREAS, (a) each
Lender having a Tranche B2 Term Loan Commitment (as hereinafter defined) in
excess of its outstanding Tranche B1 Term Loans on the Second Amendment
Effective Date (each such Lender an “Increasing
Lender”) shall make Tranche B2 Term Loans to Company on the Second
Amendment Effective Date in the amount of the excess of such Tranche B2 Term Loan
Commitment over such Increasing Lender’s Tranche B1 Term Loans, and (b) each
new Lender having a Tranche B2 Term Loan Commitment (each a “New Tranche B2 Term Loan Lender”) shall
make Tranche B2 Term Loans to Company on the Second Amendment Effective Date in
an amount equal to such New Tranche B2 Term Loan Lender’s Tranche B2 Term Loan
Commitment, the proceeds of which shall be used by Company to repay the
outstanding principal amount of Tranche B1 Term Loans of existing Lenders that
do not execute and deliver this Amendment (the “Exiting Lenders”);

 

WHEREAS, each
Lender having Tranche B1 Term Loans outstanding as of the date hereof and who
executes and delivers this Amendment shall be deemed, upon the Second Amendment
Effective Date, to have converted its Tranche B1 Term Loans into Tranche B2
Term Loans in the same aggregate principal amount as such Lender’s Tranche B2
Term Loan

 

 

Commitment (less, in the
case of any Increasing Lender, the amount of Tranche B2 Term Loans made to
repay Exiting Lenders’ Tranche B1 Term Loans);

 

WHEREAS, Company
shall pay to each Lender having Tranche B1 Term Loans outstanding as of the
Second Amendment Effective Date all accrued and unpaid interest on such Tranche
B1 Term Loans on the Second Amendment Effective Date; and

 

WHEREAS, Company also desires to
amend the Credit Agreement (i) to permit up to an additional $250,000,000 in
Term Loans to be incurred under the Credit Agreement, (ii) to permit Company to
make certain additional Restricted Junior Payments, and (iii) to increase
permitted Consolidated Capital Expenditures in connection with Acquisitions
permitted under the Credit Agreement;

 

NOW, THEREFORE, in consideration
of the premises and the agreements, provisions and covenants herein contained,
the parties hereto agree as follows:

 

Section 1.              AMENDMENTS
TO THE CREDIT AGREEMENT

 

1.1                               Amendments to
Subsection 1.1: Certain Defined Terms.

 

Subsection 1.1 of the Credit Agreement is hereby
amended by adding to such subsection the following definitions which shall be
inserted in proper alphabetical order:

 

“Applicable Tranche B2 Base Rate Margin” means with respect to any date of
determination, a rate per annum equal to 0.50%.

 

“Applicable Tranche B2 LIBOR Margin” means with respect to any date of
determination, a rate per annum equal to 1.50%.

 

“Second Amendment” means that certain Second
Amendment to this Agreement dated as of November 10, 2004.

 

“Second Amendment Effective Date” has the
meaning assigned to that term in the Second Amendment.

 

“Tranche B2 Lender” means a
Lender that has Tranche B2 Term Loan Exposure.

 

“Tranche B2 Term Loan Commitment” means the commitment of a Lender to make (and/or convert from
Tranche B1 Term Loans) on the Second Amendment Effective Date Tranche B2 Term
Loans pursuant to subsection 2.1A(ii) and “Tranche B2 Term Loan Commitments” means such commitments of all
Lenders in the aggregate.

 

“Tranche B2 Term Loan Exposure”
means, with respect to any Lender as of any date of determination, the
outstanding principal amount of the Tranche B2 Term Loan of that Lender.

 

2

 

“Tranche B2 Term Loans”
means the Loans made as Tranche B2 Term Loans (and/or converted into
Tranche B2 Term Loans from Tranche B1 Term Loans) on the Second Amendment
Effective Date by Lenders to Company pursuant to subsection 2.1A(ii).

 

“Tranche B2 Term Notes”
means any promissory notes of Company issued pursuant to subsection 2.1E to
evidence the Tranche B2 Term Loans of any Lenders, substantially in the
form of Exhibit V annexed hereto, as they may be amended,
supplemented or otherwise modified from time to time.

 

1.2                               Amendments to
Subsection 2.1: Commitments; Making of Loans; the Register; Notes.

 

A.            Subsection 2.1A of the Credit Agreement
is hereby further amended by deleting clause (ii) thereof in its entirety and
substituting the following therefor:

 

“(ii)         Tranche B2 Term Loans.  Each Lender that has a Tranche B2 Term Loan
Commitment severally agrees (a) to convert on the Second Amendment Effective
Date each “Tranche B1 Term Loan” made by such Lender under (and as defined in)
this Agreement and outstanding immediately prior to giving effect to the Second
Amendment to a Tranche B2 Term Loan hereunder (and Company hereby agrees to
such conversion) and (b) to make to Company on the Second Amendment Effective
Date Tranche B2 Term Loans hereunder in an amount equal to the excess (if any)
of such Lender’s Tranche B2 Term Loan Commitment over such Lender’s Tranche B1
Term Loans (if any) being converted on the Second Amendment Effective Date to
Tranche B2 Term Loans, so that, after giving effect to the conversion of such
Tranche B1 Term Loans into Tranche B2 Term Loans pursuant to clause (a) above
and the making of all such Tranche B2 Term Loans pursuant to clause (b) above,
each Lender that has a Tranche B2 Term Loan Commitment will have made or deemed
made, as the case may be, a Tranche B2 Term Loan to Company in an amount equal
to its Pro Rata Share of the aggregate amount of the Tranche B2 Term Loan
Commitments, to be used for the purposes identified in subsection 2.5A.  The aggregate amount of the Tranche B2 Term
Loan Commitments is $400,000,000.  Each
Tranche B2 Term Loan shall be deemed to have the same Interest Period as the
Tranche B1 Term Loan it replaces, and no making of or conversion into a Tranche
B2 Term Loan hereunder shall result in the commencement of a new Interest
Period.  Amounts borrowed (or converted)
under this subsection 2.1A(ii) and subsequently repaid and prepaid may not be
reborrowed.”

 

B.            Subsection 2.1A of the Credit Agreement
is hereby further amended by adding the following clause (v) at the end
thereof:

 

“(v)         Additional Commitments.  Company may from time to time, by notice to
Administrative Agent, request that, on the terms and subject to the conditions
contained in this Agreement, Lenders and/or other financial institutions not
then a party to this Agreement, that are approved by Administrative Agent

 

3

 

(such approval not
to be unreasonably withheld or delayed), provide up to an aggregate amount of
$250,000,000 in additional Term Loans, which Term Loans may be provided as an
additional tranche of Term Loans; provided that (i) no Event of Default
or Potential Event of Default shall have occurred and be continuing or result
from the issuance of such additional Term Loans, (ii) after giving effect to
such additional Term Loans, Company is in pro forma compliance with the maximum
Consolidated Senior Leverage Ratio and maximum Consolidated Leverage Ratio set
forth in subsections 7.6B and 7.6C, respectively, and (iii) Company shall have
given the PBGC at least 30 days prior written notice of the incurrence of such
additional Term Loans.  Upon receipt of
such notice to Administrative Agent and an Officer’s Certificate as to the
satisfaction of the foregoing conditions, Administrative Agent shall use all
reasonable efforts to arrange for Lenders or other financial institutions
approved of by Administrative Agent and Company (such approval not to be
unreasonably withheld or delayed) to provide such additional Term Loans.  Alternatively, any Lender may commit to
provide the full amount of the requested additional Term Loans and then offer
portions of such additional Term Loans to the other Lenders or other financial
institutions, subject to the approval of Administrative Agent and Company (such
approval not to be unreasonably withheld or delayed).  Nothing contained in this paragraph or
otherwise in this Agreement is intended to commit any Lender or any Agent to
provide any portion of any such additional Term Loans.  If and to the extent that any Lenders and/or
other financial institutions agree, in their sole discretion to provide any
such additional Term Loans on the terms and conditions set forth herein, (i)
the aggregate amount of additional Term Loans shall be increased by the amount
of the additional Term Loans agreed to be so provided, (ii) the Pro Rata Shares
of the respective Lenders in respect of the additional Term Loans shall be
proportionally adjusted, (iii) if necessary, in respect of an increase in Term
Loans, at such time and in such manner as Company and Administrative Agent
shall agree, the Lenders who have in their sole discretion agreed to provide
such additional Term Loans shall purchase and assume outstanding Term Loans so
as to cause the amount of such Term Loans held by each Lender to conform to the
respective percentages of the applicable Term Loans of the Lenders as so
adjusted and (iv) Company shall execute and deliver any additional Notes as any
Lender may reasonably request or to the extent necessary to effect the
foregoing changes in accordance with the next succeeding sentence, other
amendments or modifications to this Agreement or any other Loan Document.  In connection with the additional Term Loans provided
for in this subsection 2.1A(v), conforming amendments shall be made to this
Agreement and the other Loan Documents to reflect such additional Term Loans
without the consent of any Lender not a lender of such additional Term Loans,
including, without limitation, if applicable, conforming amendments:  (i) to provide for the additional Term
Loans to share ratably in the benefits of this Agreement and the other Loan
Documents with the other Term Loans made under this Agreement, (ii) to
Sections 1 and 2 to provide, among other things, for the additional Term Loans
to share ratably with the applicable Term Loans in the application of
prepayments, (iii) to provide an amortization schedule for any additional
Term Loans, and (iv) to include Lenders

 

4

 

of the additional
Term Loans in any determination of Lenders, Requisite Lenders, Requisite Class
Lenders and Pro Rata Share. 
Notwithstanding anything in this Agreement expressed or implied to the
contrary (including, without limitation in subsection 10.6), nothing herein
shall be construed to require consent from Lenders that are not lenders of such
additional Term Loans to the incurrence of the additional Term Loans in
compliance with this subsection 2.1A(v), and shall supersede any provisions in
subsection 10.6 to the contrary.”

 

1.3                               Amendment to Subsection 2.4: Repayments,
Prepayments and Reductions in Revolving Loan Commitments; General Provisions
Regarding Payments; Application of Proceeds of Collateral and Payments Under
the Guaranties.

 

Subsection 2.4A of the Credit Agreement is hereby
amended by deleting clause (ii) thereof in its entirety and substituting the
following therefor:

 

“(ii)         Scheduled Payments of Tranche B2
Term Loans.  Company shall make
principal payments on the Tranche B2 Term Loans in installments on the dates
and in the amounts set forth below:

 

	
  Date

  	
   

  	
  Scheduled Repayment

  	
   

  
	
  June 30, 2005

  	
   

  	
  $

  	
  2,000,000

  	
   

  
	
  December 31,
  2005

  	
   

  	
  $

  	
  2,000,000

  	
   

  
	
  June 30, 2006

  	
   

  	
  $

  	
  2,000,000

  	
   

  
	
  December 31,
  2006

  	
   

  	
  $

  	
  2,000,000

  	
   

  
	
  June 30, 2007

  	
   

  	
  $

  	
  2,000,000

  	
   

  
	
  December 31,
  2007

  	
   

  	
  $

  	
  2,000,000

  	
   

  
	
  June 30, 2008

  	
   

  	
  $

  	
  2,000,000

  	
   

  
	
  December 31,
  2008

  	
   

  	
  $

  	
  2,000,000

  	
   

  
	
  June 30, 2009

  	
   

  	
  $

  	
  2,000,000

  	
   

  
	
  December 31,
  2009

  	
   

  	
  $

  	
  2,000,000

  	
   

  
	
  May 6, 2010

  	
   

  	
  $

  	
  380,000,000

  	
   

  
	
  Total:

  	
   

  	
  $

  	
  400,000,000

  	
   

  
							

 

 

; provided
that the scheduled installments of principal of the Tranche B2 Term Loans set
forth above shall be reduced in connection with any voluntary or mandatory
prepayments of the Tranche B2 Term Loans in accordance with
subsection 2.4B(iv); and provided, further that the Tranche
B2 Term Loans and all other amounts owed hereunder with respect to the Tranche
B2 Term Loans shall be paid in full no later than the seventh anniversary of
the Closing Date, and the final installment payable by Company in respect of
the Tranche B2 Term Loans on such date shall be in an amount, if such

 

5

 

amount is
different from that specified above, sufficient to repay all amounts owing by
Company under this Agreement with respect to the Tranche B2 Term Loans.”

 

1.4                               Amendment to Subsection 2.5: Use of Proceeds.

 

Subsection 2.5 of the
Credit Agreement is hereby amended by deleting subsection 2.5A in its entirety
and substituting the following therefor:

 

“A.          Tranche B2 Term Loans.  The proceeds of the Tranche B2 Term Loans
shall be applied by Company to repay in full the principal amount of all
“Tranche B1 Term Loans” under this Agreement outstanding immediately prior to
giving effect to the Second Amendment which are not converted into Tranche B2
Term Loans pursuant to the terms of this Agreement as amended by the Second
Amendment.”

 

1.5                               Amendment to Subsection 2.6:  Special Provisions Governing LIBOR Loans.

 

Subsection 2.6 of the
Credit Agreement is hereby amended by inserting the following text at the end
of subsection 2.6D:

 

“; provided  further that no amounts
shall be payable under this subsection 2.6D as a result of (i) the making of,
or conversion of Tranche B1 Term Loans into, Tranche B2 Term Loans or (ii) the
prepayment or repayment of any Tranche B1 Term Loans, in each case pursuant to
the terms of Second Amendment.”

 

1.6                               Amendment
to Subsection 7.5: Restricted Junior Payments.

 

Subsection 7.5(e) of the
Credit Agreement is hereby amended by deleting it in its entirety and by substituting
the following therefor:

 

“(e)         make other Restricted Junior Payments; provided
that on the date (the “Declaration Date”)
of declaration of any dividend in respect of Company’s outstanding capital
stock pursuant to the terms of this clause (e) or the making of any other
Restricted Junior Payment pursuant to the terms of this clause (e), (X) the
Consolidated Leverage Ratio as of the last day of the Fiscal Quarter most
recently ended shall be less than 3.50:1.00 and (Y) the aggregate amount of any
such Restricted Junior Payment, when added to the aggregate amount of all
Restricted Junior Payments previously declared or (without duplication) paid by
Company pursuant to this clause (e) during the period commencing on the Closing
Date and ending on the Declaration Date, does not exceed the sum of $50,000,000
plus an amount equal to 50% of cumulative Consolidated Net Income of Company
and its Subsidiaries for the period commencing on the Closing Date and ending
on the last day of the Fiscal Quarter most recently ended.”

 

1.7                               Amendment
to Subsection 7.7: Restriction on Certain Fundamental Changes; Asset Sales and
Acquisitions.

 

Subsection 7.7(ii) of the Credit Agreement is hereby
amended by deleting it in its entirety and substituting the following therefor:

 

6

 

(ii)           Company and its Subsidiaries may make
Acquisitions (by merger or otherwise) so long as, prior to the consummation of
any such Acquisition, Company shall have delivered to Administrative Agent (a)
financial statements for Company and its Subsidiaries for the four
Fiscal-Quarter period most recently ended (the “Pro Forma
Test Period”), prepared on a pro forma basis as if such Acquisition
had been consummated on the first day of the Pro Forma Test Period and giving
effect to Company’s good faith estimate of any anticipated cost savings or
increases as a result of the consummation thereof, which anticipated cost
savings or increases are reasonably satisfactory to Administrative Agent, (b) a
pro forma Compliance Certificate demonstrating that, on the basis of such pro
forma financial statements, Company would have been in compliance with all
financial covenants set forth in subsection 7.6 on the last day of the Pro
Forma Test Period, and (c) an Officer’s Certificate calculating the amount of
the increase in Consolidated Capital Expenditures which will be permitted under
the last paragraph of subsection 7.8 as the result of such Acquisition;”

 

1.8                               Amendment
to Subsection 7.8: Consolidated Capital Expenditures.

 

Subsection 7.8 of the
Credit Agreement is hereby amended by inserting the following text at the end
of such subsection:

 

“Notwithstanding anything to the contrary contained
above in this subsection 7.8, with respect to any Acquisition permitted under
subsection 7.7(ii) of this Agreement which is consummated after the Second
Amendment Effective Date, the amounts set forth in the table above shall be
increased each year by an amount equal to 5% of the gross revenues of the
Person or attributable to the assets acquired in such Acquisition for the most
recently ended fiscal year (provided that in the case of an Acquisition
effected after the first day of any calendar year, the actual additional amount
permitted to be expended pursuant to this clause in such calendar year shall be
the amount provided for in this clause multiplied by a fraction, the numerator
of which is the number of days remaining during such calendar year and the
denominator of which is 365).”

 

1.9                               References to Tranche B1 Term Loans and Related
Terms.

 

As of the Second Amendment Effective Date, and
immediately after the prepayment of all Tranche B1 Term Loans in accordance
with the terms of the Credit Agreement as amended hereby, (i) the definitions
of “Applicable Tranche B1 Base Rate Margin”, “Applicable Tranche B1 LIBOR
Margin”, “Tranche B1 Lender”, “Tranche B1 Term Loan Commitment(s)”, “Tranche B1
Term Loan Exposure”, “Tranche B1 Term Loans” and “Tranche B1 Term Notes” shall
be deleted and (ii) all references to “Applicable Tranche B1 Base Rate Margin”,
“Applicable Tranche B1 LIBOR Margin”, “Tranche B1 Lender”, “Tranche B1 Term
Loan Commitment(s)”, “Tranche B1 Term Loan Exposure”, “Tranche B1 Term Loans”
and “Tranche B1 Term Notes” contained in the Credit Agreement (and the other
Loan Documents) shall be amended to be references to the “Applicable Tranche B2
Base Rate Margin”, “Applicable Tranche B2 LIBOR Margin”, “Tranche B2 Lender”,
“Tranche B2 Term Loan Commitment(s)”, “Tranche B2 Term Loan Exposure”, “Tranche
B2 Term Loans” and “Tranche

 

7

 

B2 Term Notes”,
respectively, in each case except as such references apply to Tranche B1 Term
Loans being converted into or being repaid out of the proceeds of the Tranche
B2 Term Loans on the Second Amendment Effective Date.

 

1.10                        Substitution of Exhibits.

 

A.            Exhibit I to the Credit
Agreement is hereby amended by deleting said Exhibit I in its
entirety and substituting in place thereof a new Exhibit I in the form
of Annex A to this Amendment.

 

B.            Exhibit V to the Credit
Agreement is hereby amended by deleting said Exhibit V in its
entirety and substituting in place thereof a new Exhibit V in the form
of Annex B to this Amendment.

 

C.            Exhibit VIII to the Credit
Agreement is hereby amended by deleting said Exhibit VIII in its
entirety and substituting in place thereof a new Exhibit VIII in the
form of Annex C to this Amendment.

 

Section 2.              ACKNOWLEDGEMENT
AND CONSENT

 

Each of Company and each Subsidiary Guarantor (each
individually a “Credit Support Party”
and collectively, the “Credit Support Parties”) has read this Amendment and
consents to the terms hereof and further hereby confirms and agrees that,
notwithstanding the effectiveness of this Amendment, the obligations of such
Credit Support Party under each of the Loan
Documents to which such Credit Support Party is a party shall not be
impaired and each of the Loan Documents
to which such Credit Support Party is a party is, and shall continue to
be, in full force and effect and are hereby confirmed and ratified in all
respects.

 

Each Subsidiary Guarantor acknowledges and agrees that
(i) notwithstanding the conditions to effectiveness set forth in this
Amendment, such Credit Support Party is not required by the terms of the Credit
Agreement or any other Loan Document to consent to the amendments to the Credit
Agreement effected pursuant to this Amendment and (ii) nothing in the
Credit Agreement, this Amendment or any other Loan Document shall be deemed to
require the consent of such Credit Support Party to any future amendments to
the Credit Agreement.

 

Section 3.              CONDITIONS
TO EFFECTIVENESS

 

Section 1 of this Amendment shall become effective
only upon the satisfaction of all of the conditions precedent (the date of
satisfaction of all such conditions precedent being referred to herein as the “Second Amendment Effective Date”) set forth
in this Section 3.

 

D.            Corporate
Documents.  On or
before the Second Amendment Effective Date, Company shall and shall cause each
other Credit Support Party to deliver to Lenders (or to Administrative Agent
for Lenders with sufficient originally executed copies, where appropriate, for
each Lender and its counsel), with respect to Company or such other Credit
Party, as the case may be, a Secretary’s Certificate, in form and substance
reasonably satisfactory to Administrative Agent and dated the Second Amendment
Effective Date, certifying that (1) the Organizational Documents of Company,
(2) the resolutions of the Board of Directors of

 

8

 

Company and each other
Credit Support Party and (3) the signature and incumbency certificate of
Company and each other Credit Support Party, in each case, as delivered to
Administrative Agent on the Closing Date, are in full force and effect and have
not been amended or modified in any respect since the Closing Date except as
described therein.

 

E.             Amendment.  Administrative Agent shall have received from
(i) the Requisite Lenders, (ii) Increasing Lenders and/or New Tranche B2 Term
Loan Lenders providing Tranche B2 Term Loan Commitments in an amount sufficient
to repay all of the outstanding principal amount (as of the Second Amendment
Effective Date) of the Tranche B1 Term Loans owed to the Exiting Lenders, and
(iii) Company and the other Credit Support Parties, (1) a counterpart of this
Amendment signed on behalf of such party or (2) written evidence satisfactory
to Administrative Agent that such party has executed a counterpart of a
commitment letter with respect to such Increasing Lenders’ and/or New Tranche
B2 Term Loan Lenders’ additional or new Tranche B2 Term Loan Commitments,
respectively.

 

F.             Opinion
of Counsel.  On or before the Second Amendment
Effective Date, Company shall have delivered to Lenders (or to Administrative
Agent for Lenders with sufficient originally executed copies, where
appropriate, for each Lender and its counsel) originally executed copies of one
or more favorable written opinions of (i) Edward G. Wetmore, general counsel
for Company and (ii) Simpson Thacher & Bartlett LLP, special counsel for
the Company, in each case in form and substance reasonably satisfactory to
Administrative Agent and its counsel, dated as of the Second Amendment
Effective Date, with respect to the enforceability of this Amendment and the
Tranche B2 Term Notes (this Amendment constituting a written request by Company
to such counsel to deliver such opinions to Lenders).

 

G.            Notice
of Borrowing. 
Administrative Agent shall have received a Notice of Borrowing meeting
the requirements of subsection 2.1B of the Credit Agreement.  Such Notice of Borrowing shall be deemed (i)
to the extent of any conversion of Tranche B1 Term Loans to Tranche B2 Term
Loans, to request such conversion, and (ii) to the extent of the aggregate
principal amount of any Exiting Lenders’ Tranche B1 Term Loans, to request the
funding of Tranche B2 Term Loans from any Increasing Lender and/or any New
Tranche B2 Lenders in accordance with subsection 2.1A(ii), and to direct the
voluntary prepayment of all Exiting Lenders’ Tranche B1 Term Loans in
accordance with subsection 2.4B(iv) of the Credit Agreement.

 

H.            Interest Payments.  Company shall have paid to all Lenders having
Tranche B1 Term Loans, simultaneously with the making of the Tranche B2 Term
Loans hereunder, all accrued and unpaid interest on their Tranche B1 Term Loans
to the Second Amendment Effective Date.

 

I.              Fees.  Administrative Agent shall have received any
fees separately agreed upon between Company and Administrative Agent.

 

Section 4.              REPRESENTATIONS
AND WARRANTIES

 

In order to induce Lenders and Administrative Agent to
enter into this Amendment and to amend the Credit Agreement in the manner
provided herein, Company

 

9

 

represents and
warrants to Administrative Agent and each Lender that the following statements
are true, correct and complete:

 

A.            Authorization; Binding
Obligations. 
Company has all requisite corporate power and authority to enter into
this Amendment.  The execution, delivery
and performance of this Amendment have been duly authorized by all necessary
corporate action by Company.  This
Amendment has been duly executed and delivered by Company and is the legally
valid and binding obligation of Company, enforceable against Company in
accordance with its terms, except as enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws relating to
or limiting creditors’ rights generally and by equitable principles relating to
enforceability.

 

B.            No Conflict.  The execution and delivery by Company of this
Amendment do not and will not (i) violate any provision of any material
law or any material governmental rule or regulation applicable to Company, the
Organizational Documents of Company or any 
material order, judgment or decree of any court or other agency of
government binding on Company, (ii) conflict with, result in a breach of
or constitute (with due notice or lapse of time or both) a default under any
Contractual Obligation of Company, (iii) result in or require the creation
or imposition of any Lien under any such Contractual Obligation upon any of the
properties or assets of Company (other than any Liens created under any of the
Loan Documents in favor of Collateral Agent on behalf of Lenders or PBGC).

 

C.            Governmental Consents.  The execution and delivery by Company of this
Amendment do not and will not require any registration with, consent or
approval of, or notice to, or other action to, with or by, any federal, state
or other governmental authority or regulatory body except any thereof that have
been obtained and are in full force and effect.

 

D.            Incorporation of Representations.  Each representation and warranty of Company
contained in each of the Loan Documents is true and correct in all material
respects on and as of the Second Amendment Effective Date to the same extent as
though made on and as of the Second Amendment Effective Date except to the
extent such representations and warranties relate to an earlier date, in which
case they were true and correct in all material respects as of such earlier
date.

 

E.             Absence of Default.  No event has occurred and is continuing or
would result from the execution, delivery or performance of this Amendment that
constitutes or would constitute an Event of Default or a Potential Event of
Default after giving effect to this Amendment.

 

Section 5.              MISCELLANEOUS

 

A.            Reference to and Effect on the
Credit Agreement and the Other Loan Documents.

 

(i)            On and after the Second Amendment
Effective Date, each reference in the Credit Agreement to “this Agreement”,
“hereunder”, “hereof”, “herein” or words of like import referring to the Credit
Agreement, and each reference in the other Loan Documents to the “Credit
Agreement”, “thereunder”, “thereof” or words of like

 

10

 

import referring to the Credit Agreement shall mean
and be a reference to the Credit Agreement, as amended by this Amendment.

 

(ii)           Except as specifically amended by
this Amendment, the Credit Agreement and the other Loan Documents shall remain
in full force and effect and are hereby ratified and confirmed.

 

(iii)          The execution, delivery and
performance of this Amendment shall not, except as expressly provided herein,
constitute a waiver of any provision of, or operate as a waiver of any right,
power or remedy of Administrative Agent, or any Lender under, the Credit
Agreement or any of the other Loan Documents.

 

B.            Obligations of New Tranche B2 Term Loan Lenders.  Company, Lenders and each New Tranche B2 Term
Loan Lender hereby agrees that, upon the effectiveness of this Amendment, such
New Tranche B2 Term Loan Lender shall be a party to the Credit Agreement and
shall have all of the rights and obligations under the Loan Documents, and
shall be deemed to have made all of the covenants and agreements contained in
the Loan Documents, arising out of or otherwise related to the Tranche B2 Term
Loans.

 

C.            Fees and Expenses.  Loan Parties acknowledge that all costs, fees
and expenses as described in subsection 10.2 of the Credit Agreement incurred
by the Administrative Agent and its counsel with respect to this Amendment and
the documents and transactions contemplated hereby shall be for the account of
Loan Parties.

 

D.            Headings.  Section and subsection headings in this
Amendment are included herein for convenience of reference only and shall not
constitute a part of this Amendment for any other purpose or be given any
substantive effect.

 

E.             Applicable Law.  THIS AMENDMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE
CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF
NEW YORK (INCLUDING WITHOUT LIMITATION SECTION 5-1401 OF THE GENERAL
OBLIGATIONS LAW OF THE STATE OF NEW YORK), WITHOUT REGARD TO CONFLICTS OF LAWS
PRINCIPLES.

 

F.             Counterparts.  This Amendment may be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed and delivered shall be
deemed an original, but all such counterparts together shall constitute but one
and the same instrument; signature pages may be detached from multiple separate
counterparts and attached to a single counterpart so that all signature pages
are physically attached to the same document.

 

11

 

IN WITNESS WHEREOF,
the parties hereto have caused this Amendment to be duly executed and delivered
by their respective officers thereunto duly authorized as of the date first
written above.

 

COMPANY:

 

	
   

  	
  AMPHENOL CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Diana G.
  Reardon

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Diana G. Reardon

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President & Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CREDIT
  SUPPORT PARTIES:

  	
   

  	
   

  
	
  (for purposes of Section 2)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ADVANCED CIRCUIT TECHNOLOGY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Diana G.
  Reardon

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Diana G. Reardon

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President & Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  AMPHENOL AEROSPACE FRANCE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Diana G.
  Reardon

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Diana G. Reardon

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President & Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  AMPHENOL ANTEL, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Diana G. Reardon

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Diana G. Reardon

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President & Chief

  Financial Officer

  
								

 

S-1

 

	
   

  	
  AMPHENOL CONNEX CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Diana G.
  Reardon

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Diana G. Reardon

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President & Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  AMPHENOL COMMERCIAL &

  INDUSTRIAL FRANCE, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Martin H. Loeffler

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Martin H. Leoffler

  
	
   

  	
   

  	
  Title:

  	
  Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  AMPHENOL INTERCONNECT PRODUCTS

  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Diana G.
  Reardon

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Diana G. Reardon

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President & Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  AMPHENOL INTERNATIONAL LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Diana G.
  Reardon

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Diana G. Reardon

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President & Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  AMPHENOL OPTIMIZE MANUFACTURING CO.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Diana G.
  Reardon

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Diana G. Reardon

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President & Chief

  Financial Officer

  
						

 

S-2

 

	
   

  	
  AMPHENOL T&M ANTENNAS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Diana G.
  Reardon

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Diana G. Reardon

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President & Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  AMPHENOL USHOLDCO INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Diana G.
  Reardon

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Diana G. Reardon

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President & Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SINE SYSTEMS CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Diana G.
  Reardon

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Diana G. Reardon

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President & Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TIMES FIBER COMMUNICATIONS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Diana G.
  Reardon

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Diana G. Reardon

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President & Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TIMES WIRE & CABLE COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Diana G.
  Reardon

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Diana G. Reardon

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President & Chief

  Financial Officer

  
						

 

S-3

 

	
   

  	
  AMPHENOL PCD, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Diana G.
  Reardon

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Diana G. Reardon

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President & Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  KONNEKTECH, LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Diana G.
  Reardon

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Diana G. Reardon

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President & Chief

  Financial Officer

  
						

 

S-4

 

	
  LENDERS:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DEUTSCHE BANK TRUST COMPANY

  AMERICAS,

  
	
   

  	
  individually and as
  Administrative Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Marguerite Sutton

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Marguerite Sutton

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BANK OF AMERICA,

  as a Lender

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Irene Bertozzi Bartenstein

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Irene Bertozzi Bartenstein

  
	
   

  	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK,

  as a Lender

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joanna S. Bellocq

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Joanna S. Bellocq

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CHEVY CHASE BANK, FSB,

  as a Lender

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Dory Halati

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Dori Halati

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  FIRSTRUST BANK,

  as a Lender

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Kent Nelson

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Kent Nelson

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  FLEET NATIONAL BANK,

  as a Lender

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Irene Bertozzi Bartenstein

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Irene Bertozzi Bartenstein

  
	
   

  	
   

  	
  Title:

  	
  Director

  
									

 

S-5

 

	
   

  	
  NATIONAL CITY BANK,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Gavin D. Young

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Marguerite Sutton

  
	
   

  	
   

  	
  Title:

  	
  Assistant Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  NORDEA BANK FINLAND PLC, NEW YORK

  BRANCH,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Kren Holm-Jorgensen

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Kren Holm-Jorgensen

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Henrik M. Steffensen

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Henrik M. Steffensen

  
	
   

  	
   

  	
  Title:

  	
  First Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  THE NORINCHUKIN BANK
  New York Branch,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Masanori Shoji

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Masanori Shoji

  
	
   

  	
   

  	
  Title:

  	
  Joint General Manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  PB CAPITAL CORPORATION,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Tyler J. McCarthy

  	
   

  
	
   

  	
   

  	
  Name:

  	
   Tyler J.
  McCarthy

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Andrew Shipman

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Andrew Shipman

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

S-6

 

	
   

  	
  DELANO Company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Pacific Investment Management Company LLC,

  as its Investment Advisor

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Mohan V. Phansalkar

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Mohan V. Phansalkar

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ROYALTON COMPANY

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Pacific Investment Management Company LLC,

  as its Investment Advisor

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Mohan V. Phansalkar

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Mohan V. Phansalkar

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ROYAL BANK OF CANADA,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Stephanie Babich-Allegra

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stephanie Babich-Allegra

  
	
   

  	
   

  	
  Title:

  	
  Authorized Signatory

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  RZB Finance LLC,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ John A. Valiska

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John A. Valiska

  
	
   

  	
   

  	
  Title:

  	
  Group Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Pearl Geffers

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Pearl Geffers

  
	
   

  	
   

  	
  Title:

  	
  First Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
					

 

S-7

 

	
   

  	
  UBS AG, Stamford Branch,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Wilfred V. Saint

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Wilfred V. Saint

  
	
   

  	
   

  	
  Title:

  	
  Director, Banking Product

  Services, US

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Joselin Fernandes

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Joselin Fernandes

  
	
   

  	
   

  	
  Title:

  	
  Associate Director, Banking

  Product Services, US

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  UFJ Bank Limited,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Stephen C. Small

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stephen C. Small

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
					

 

S-8

 

Annex A

 

 

(See
Attached)

 

 

EXHIBIT I

 

[**FORM OF**]

 

NOTICE OF BORROWING

 

Pursuant to that
certain Credit Agreement dated as of May 6, 2003, as amended by that
certain First Amendment dated as of November 6, 2003, as further amended
by that certain Second Amendment dated as of November 10, 2004, said Credit
Agreement, as it may be further amended, supplemented, restated, replaced, or
otherwise modified from time to time, the “Credit Agreement”,
the terms defined therein and not otherwise defined herein being used herein as
therein defined), by and among Amphenol Corporation, a Delaware corporation (“Company”), the financial institutions party thereto as
Lenders (“Lenders”), Fleet National Bank and
Royal Bank of Canada, as Co-Documentation Agents, UBS Securities LLC, as
Syndication Agent, and Deutsche Bank Trust Company Americas, as Administrative
Agent for Lenders (“Administrative Agent”)
and Collateral Agent for Lenders, this represents Company’s request to borrow
as follows:

 

	
  1.

  	
   

  	
  Date of borrowing:

  	
                                              ,

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Amount of borrowing:

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Lender(s):

  	
  o
  a.

  	
  Lenders, in accordance with their applicable Pro
  Rata Shares

  
	
   

  	
   

  	
   

  	
  o
  b.

  	
  Swing Line Lender

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Type of Loans:

  	
  o
  b.

  	
  Tranche B2 Term Loans

  
	
   

  	
   

  	
   

  	
  o
  d.

  	
  Revolving Loans

  
	
   

  	
   

  	
   

  	
  o
  e.

  	
  Swing Line Loan

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Interest rate option:

  	
  o
  a.

  	
  Base Rate Loan(s)

  
	
   

  	
   

  	
   

  	
  o
  b.

  	
  LIBOR Loans with an initial Interest Period of                   
  month(s)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Company’s account:

  	
  Name of Bank:

  	
   

  
	
   

  	
   

  	
   

  	
  ABA Number:

  	
   

  
	
   

  	
   

  	
   

  	
  Name of A/C:

  	
   

  
	
   

  	
   

  	
   

  	
  Account Number:

  	
   

  
						

 

The proceeds of such Loans are to be deposited in Company’s account at
Administrative Agent.

 

The undersigned officer, to the best of his or her
knowledge, and Company certify that:

 

(i)            The
representations and warranties contained in the Credit Agreement and the other
Loan Documents are true, correct and complete in all material respects on and
as of the date hereof to the same extent as though made on and as of the

 

A-1

 

date hereof, except to the extent such representations
and warranties specifically relate to an earlier date, in which case such
representations and warranties were true, correct and complete in all material
respects on and as of such earlier date; and

 

(ii)           No
event has occurred and is continuing or would result from the consummation of
the borrowing contemplated hereby that would constitute an Event of Default or
a Potential Event of Default.

 

 

	
  DATED:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  AMPHENOL CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-2

 

Annex B

 

 

(See
Attached)

 

B-1

 

EXHIBIT V

 

[**FORM OF**] TRANCHE B2 TERM
NOTE

 

AMPHENOL CORPORATION

 

PROMISSORY NOTE DUE MAY 6, 2010

 

	
  $                            (1)

  	
  New York, New York

  
	
   

  	
  November     ,
  2004

  

 

 

FOR
VALUE RECEIVED, AMPHENOL CORPORATION,
a Delaware corporation (“Company”),
promises to pay to                       (2)
(“Payee”) or its registered assigns the
principal amount of                         (3)
($[**1**]) in the installments referred to below.

 

Company also
promises to pay interest on the unpaid principal amount hereof, from the date
hereof until paid in full, at the rates and at the times which shall be
determined in accordance with the provisions of that certain Credit Agreement dated
as of May 6, 2003 (said Credit Agreement, as amended by that certain First
Amendment to Credit Agreement dated as of November 6, 2003, as further
amended by that certain Second Amendment to Credit Agreement dated as of
November 10, 2004 and as it may further be amended, supplemented, restated,
replaced, or otherwise modified from time to time, the “Credit
Agreement”, the terms defined therein and not otherwise defined
herein being used herein as therein defined) by and among Company, the
financial institutions party thereto as Lenders (“Lenders”),
Fleet National Bank and Royal Bank of Canada, as Co-Documentation Agents, UBS
Securities LLC, as Syndication Agent, and Deutsche Bank Trust Company Americas,
as Administrative Agent for Lenders (“Administrative Agent”)
and Collateral Agent for Lenders.

 

This Note is one
of Company’s “Tranche B2 Term Notes” in the aggregate principal amount of
$400,000,000 and is issued pursuant to and entitled to the benefits of the
Credit Agreement, to which reference is hereby made for a more complete
statement of the terms and conditions under which the Tranche B2 Term Loan
evidenced hereby was made and is to be repaid.

 

All payments of
principal and interest in respect of this Note shall be made in lawful money of
the United States of America in same day funds at the Funding and Payment
Office or at such other place as shall be designated in writing for such
purpose in accordance with the terms of the Credit Agreement.  Unless and until an Assignment Agreement
effecting the assignment or transfer of this Note shall have been accepted by
Administrative Agent and recorded in the Register as provided in subsection
10.1B(ii) of the Credit Agreement, Company and Administrative Agent shall be
entitled to deem and treat Payee as the owner and holder of this Note and the
Loan evidenced hereby.  Payee hereby
agrees, by its acceptance hereof, that

 

(1)           Insert amount of
Lender’s Tranche B2 Term Loan in numbers.

(2)           Insert Lender’s name
in capital letters.

(3)           Insert amount of
Lender’s Tranche B2 Term Loan in words.

 

 

before disposing of this Note or any part hereof it
will make a notation hereon of all principal payments previously made hereunder
and of the date to which interest hereon has been paid; provided, however,
that the failure to make a notation of any payment made on this Note shall not
limit or otherwise affect the obligations of Company hereunder with respect to
payments of principal of or interest on this Note.

 

Whenever any
payment on this Note shall be stated to be due on a day which is not a Business
Day, such payment shall be made on the next succeeding Business Day and such
extension of time shall be included in the computation of the payment of
interest on this Note.

 

This Note is
subject to mandatory prepayment as provided in subsection 2.4B(iii) of the
Credit Agreement and to prepayment at the option of Company as provided in
subsection 2.4B(i) of the Credit Agreement.

 

THIS NOTE
AND THE RIGHTS AND OBLIGATIONS OF COMPANY AND PAYEE HEREUNDER SHALL BE GOVERNED
BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS
OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATIONS
LAW OF THE STATE OF NEW YORK), WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.

 

Upon the
occurrence of an Event of Default, the unpaid balance of the principal amount
of this Note, together with all accrued and unpaid interest thereon, may
become, or may be declared to be, due and payable in the manner, upon the
conditions and with the effect provided in the Credit Agreement.

 

The terms of this
Note are subject to amendment only in the manner provided in the Credit
Agreement.

 

This Note is
subject to restrictions on transfer or assignment as provided in subsections
10.1 and 10.15 of the Credit Agreement.

 

Company and any
endorsers of this Note hereby consent to renewals and extensions of time at or
after the maturity hereof, without notice, and hereby waive diligence,
presentment, protest, demand and notice of every kind and, to the full extent
permitted by law, the right to plead any statute of limitations as a defense to
any demand hereunder.

 

 

IN
WITNESS WHEREOF, Company has caused this Note to be duly
executed and delivered by its officer thereunto duly authorized as of the date
and at the place first written above.

 

	
   

  	
  AMPHENOL CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

Annex C

 

 

(See
Attached)

 

 

EXHIBIT VIII

 

[**FORM OF**]

 

COMPLIANCE CERTIFICATE

 

THE UNDERSIGNED HEREBY CERTIFY THAT:

 

(1)           We
are the duly elected [Title] and [Title] of Amphenol Corporation, a Delaware
corporation (“Company”);

 

(2)           We
have reviewed the terms of that certain Credit Agreement dated as of May 6,
2003 (said Credit Agreement as amended by that certain First Amendment dated as
of November 6, 2003, as further amended by that certain Second Amendment
dated as of November 10, 2004, and as it may be amended, supplemented,
restated, replaced or otherwise modified from time to time, being the “Credit Agreement”, the terms defined therein and not
otherwise defined in this Certificate (including Attachment No. 1 annexed
hereto and made a part hereof) being used in this Certificate as therein
defined), by and among Company, the financial institutions party thereto as
Lenders (the “Lenders”), Fleet
National Bank and Royal Bank of Canada, as Co-Documentation Agents, UBS
Securities LLC, as Syndication Agent, and Deutsche Bank Trust Company Americas,
as Administrative Agent for Lenders and Collateral Agent for Lenders, and the
terms of the other Loan Documents, and we have made, or have caused to be made
under our supervision, a review in reasonable detail of the transactions and
condition of Company and its Subsidiaries during the accounting period covered
by the attached financial statements; and

 

(3)           The
examination described in paragraph (2) above did not disclose, and we have no
knowledge of, the existence of any condition or event which constitutes an
Event of Default or Potential Event of Default during or at the end of the
accounting period covered by the attached financial statements or as of the
date of this Certificate[, except as set forth below].

 

[Set forth [below] [in a separate attachment to this
Certificate] are all exceptions to paragraph (3) above listing, in detail, the
nature of the condition or event, the period during which it has existed and
the action which Company has taken, is taking, or proposes to take with respect
to each such condition or event:

 

]

 

 

The foregoing certifications, together with the
computations set forth in Attachment No. 1 annexed hereto and made a part
hereof and the financial statements delivered with this Certificate in support
hereof, are made and delivered this                      
day of                         ,
20      pursuant to subsection 6.1(iii) of the Credit
Agreement.

 

	
   

  	
  AMPHENOL CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

ATTACHMENT
NO. 1

TO
COMPLIANCE CERTIFICATE

 

This Attachment No. 1 is attached to and made a
part of a Compliance Certificate dated as of                     ,
200      and pertains to the period from                       ,
        to                       ,
200   .  Subsection
references herein relate to subsections of the Credit Agreement.

 

A.            Indebtedness

 

	
  1.

  	
   

  	
  Indebtedness in respect of Capital Leases

  permitted under subsection 7.1(iii):

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Maximum permitted under subsection 7.1(iii):

  	
   

  	
  $

  	
  50,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Indebtedness permitted under subsection 7.1(ix):

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Maximum permitted under subsection 7.1(ix):

  	
   

  	
  $

  	
  200,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Indebtedness permitted under subsection 7.1(xi):

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Maximum permitted under subsection 7.1(xi):

  	
   

  	
  $

  	
  20,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Indebtedness permitted under subsection 7.1(xii):

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Maximum permitted under subsection 7.1(xii):

  	
   

  	
  $

  	
  200,000,000

  	
   

  

 

B.            Liens

 

	
  1.

  	
   

  	
  Indebtedness secured by Liens permitted under subsection
  7.2(iii):

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Maximum permitted under subsection 7.2(iii):

  	
   

  	
  $

  	
  20,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Indebtedness permitted under subsection 7.1(ix) secured
  by liens on assets (equally and ratably shared by Collateral Agent on behalf
  of Lenders to the extent in an amount in excess of $125,000,000):

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Indebtedness secured by Liens permitted under subsection
  7.2(viii):

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Maximum permitted under subsection 7.2(viii):

  	
   

  	
  $

  	
  25,000,000

  	
   

  

 

 

C.            Investments

 

	
  1.

  	
   

  	
  Investments in loans
  and advances to officers, directors and employees other than for the purchase
  of stock permitted under subsection 7.3(ii):

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Maximum permitted under subsection 7.3(ii):

  	
   

  	
  $

  	
  5,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Unrestricted Investments in Unrestricted
  Subsidiaries permitted under subsection 7.3(vi)(a):

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Maximum permitted under subsection 7.3(vi)(a):

  	
   

  	
  $

  	
  50,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Aggregate Unrestricted Investments permitted under subsection
  7.3(vi)(a):

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Maximum permitted under subsection 7.3(vi)(a):

  	
   

  	
  $

  	
  100,000,000

  	
   

  

 

D.            Guarantee
Obligations

 

	
  1.

  	
   

  	
  Guarantee Obligations permitted under subsection 7.4(vii):

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Maximum permitted under subsection 7.4(vii):

  	
   

  	
  $

  	
  25,000,000

  	
   

  

 

E.             Restricted
Junior Payments

 

	
  1.

  	
   

  	
  Aggregate amount of Restricted Junior Payments paid since
  the Closing Date in respect of Company’s common stock as permitted under
  clause (ii)(e) of subsection 7.5:

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Cumulative Consolidated Net Income during the period
  from the Closing Date to the end of the Fiscal Quarter most recently ended:

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Maximum aggregate amount of Restricted Junior
  Payments since Closing Date (50% of E.2 + $50,000,000):

  	
   

  	
  $

  	
   

  	
   

  

 

F.             Minimum
Interest Coverage Ratio (for the four-Fiscal Quarter period
ending                            ,
          )

 

	
  1.

  	
   

  	
  Consolidated Net Income:

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Consolidated Interest Expense:

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Provisions for taxes based on income:

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Total depreciation expense:

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Total amortization expense:

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Expenses incurred in connection with any issuance of
  debt or equity:

  	
   

  	
  $

  	
   

  	
   

  

 

 

	
  7.

  	
   

  	
  Restructuring charges or reserves or other cash non-recurring
  charges, such cash portion not to exceed $5,000,000 in the aggregate in any consecutive
  twelve month period ending on any date of determination:

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Fees and expenses related to permitted acquisitions
  and investments:

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Other non-cash charges:

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  Minority interest expense:

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  Other non-recurring non-cash charges:

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
   

  	
  Redemption premiums and related expenses for
  Existing Subordinated Notes:

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
   

  	
  LIBOR breakage costs on the Closing Date:

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14.

  	
   

  	
  Cash payments related to previously deducted non-cash
  gains (attach reconciling schedule):

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.

  	
   

  	
  Non-recurring gains:

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16.

  	
   

  	
  Non-cash gains:

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17.

  	
   

  	
  Cash expenditures related to previously added back
  non-cash charges (attach reconciling schedule):

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  18.

  	
   

  	
  Consolidated Adjusted EBITDA

  (1+2+3+4+5+6+7+8+9+10+11+12+13+14-15-16-17):

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19.

  	
   

  	
  Interest Coverage Ratio (18):(2):

  	
   

  	
            :1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  20.

  	
   

  	
  Minimum ratio required under subsection 7.6A:

  	
   

  	
     3.00:1.00

  	
   

  

 

G.            Maximum
Senior Leverage Ratio (as of                        ,
        )

 

	
  1.

  	
   

  	
  Consolidated Total Debt (excluding any Subordinated
  Indebtedness):

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Consolidated Adjusted EBITDA (F.18 above):

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Senior Leverage Ratio (1):(2):

  	
   

  	
            :1.00

  	
   

  

 

 

	
  4.

  	
   

  	
  Maximum ratio permitted under subsection 7.6B:

  	
   

  	
            :1.00

  	
   

  

 

H.            Maximum
Leverage Ratio (as of                        ,
        )

 

	
  1.

  	
   

  	
  Consolidated Total Debt:

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Consolidated Adjusted EBITDA (F.18 above):

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Leverage Ratio (1):(2):

  	
   

  	
            :1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Maximum ratio permitted under subsection 7.6C:

  	
   

  	
            :1.00

  	
   

  

 

I.              Fundamental
Changes

 

	
  1.

  	
   

  	
  Aggregate fair value of assets sold in any one or
  more Asset Sales after Closing Date in one or more transactions permitted
  under subsection 7.7(v):

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Maximum permitted under subsection 7.7(v):

  	
   

  	
  $

  	
  300,000,000

  	
   

  

 

J.             Consolidated
Capital Expenditures

 

	
  1.

  	
   

  	
  Consolidated Capital Expenditures for current Fiscal
  Year-to-date:

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Carry-forward from Maximum Capital Expenditures
  Amount for preceding Fiscal Year:

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Consolidated Capital Expenditures Amount for current
  Fiscal Year:

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Increase in Capital Expenditures from Acquisitions for
  current Fiscal Year:

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Maximum Consolidated Capital Expenditures Amount
  permitted under subsection 7.8

  (J.2+J.3+J.4):

  	
   

  	
  $

  	
   

  	
   

  

 

K.            Accounts
Receivable Facility

 

	
  1.

  	
   

  	
  Current aggregate Accounts Receivable Facility
  Amount: 

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Aggregate Accounts Receivable Facility Amount for
  immediately preceding period:

  	
   

  	
  $

  	
   

  	
   

  

 

 

	
  3.

  	
   

  	
  Current aggregate Accounts Receivable Facility
  Amount in excess of $100,000,000:

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Aggregate mandatory prepayments previously made
  pursuant to subsection 2.4B(iii)(d):

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Mandatory prepayments required this period (K.3 –
  K.4), if a positive number:

  	
   

  	
  $Exhibit 10.1

 

BOOKHAM, INC.

 

2004 STOCK
INCENTIVE PLAN

 

1.             Purpose

 

The purpose of this 2004 Stock Incentive Plan (the “Plan”)
of Bookham, Inc. a Delaware corporation (the “Company”), is to advance the
interests of the Company’s stockholders by enhancing the Company’s ability to
attract, retain and motivate persons who are expected to make important
contributions to the Company and by providing such persons with equity
ownership opportunities and performance-based incentives that are intended to
align their interests with those of the Company’s stockholders.  Except where the context otherwise requires,
the term “Company” shall include any of the Bookham, Inc’s present or future
parent or subsidiary corporations as defined in Sections 424(e) or (f) of
the Internal Revenue Code of 1986, as amended, and any regulations promulgated
thereunder (the “Code”) and any other business venture (including, without
limitation, joint venture or limited liability company) in which Bookham, Inc.
has a controlling interest, as determined by the Board of Directors of the
Company (the “Board”).

 

2.             Eligibility

 

All of the Company’s employees, officers, directors,
consultants and advisors are eligible to receive options, stock appreciation
rights, restricted stock and other stock-based awards (each, an “Award”) under
the Plan.  Each person who receives an
Award under the Plan is deemed a “Participant”.

 

3.             Administration and Delegation

 

(a)   Administration
by Board of Directors.  The Plan will
be administered by the Board.  The Board
shall have authority to grant Awards and to adopt, amend and repeal such
administrative rules, guidelines and practices relating to the Plan as it shall
deem advisable.  The Board may correct
any defect, supply any omission or reconcile any inconsistency in the Plan or
any Award in the manner and to the extent it shall deem expedient to carry the
Plan into effect and it shall be the sole and final judge of such
expediency.  All decisions by the Board
shall be made in the Board’s sole discretion and shall be final and binding on
all persons having or claiming any interest in the Plan or in any Award.  No director or person acting pursuant to the
authority delegated by the Board shall be liable for any action or determination
relating to or under the Plan made in good faith.

 

(b)   Appointment
of Committees.  To the extent permitted by
applicable law, the Board may delegate any or all of its powers under the Plan
to one or more committees or subcommittees of the Board (a “Committee”).  All references in the Plan to the “Board”
shall

 

 

mean the Board or a Committee of the Board or the officers referred to
in Section 3(c) to the extent that the Board’s powers or authority under the
Plan have been delegated to such Committee or officers.

 

(c)   Delegation
to Officers.  To the extent permitted
by applicable law, the Board may delegate to one or more officers of the
Company the power to grant Awards to employees or officers of the Company or
any of its present or future subsidiary corporations and to exercise such other
powers under the Plan as the Board may determine, provided that the Board shall
fix the terms of the Awards to be granted by such officers (including the
exercise price of such Awards, which may include a formula by which the
exercise price will be determined) and the maximum number of shares subject to
Awards that the officers may grant; provided further, however, that no officer
shall be authorized to grant Awards to any “executive officer” of the Company
(as defined by Rule 3b-7 under the Securities Exchange Act of 1934, as amended
(the “Exchange Act”)) or to any “officer” of the Company (as defined by Rule
16a-1 under the Exchange Act).

 

4.             Stock Available for Awards

 

(a)   Number
of Shares.  Subject to adjustment
under Section 10, Awards may be made under the Plan for up to 4,000,000 shares
of common stock, $.01 par value per share, of the Company (the “Common Stock”).  If any Award expires or is terminated,
surrendered or canceled without having been fully exercised or is forfeited in
whole or in part (including as the result of shares of Common Stock subject to
such Award being repurchased by the Company at the original issuance price
pursuant to a contractual repurchase right) or results in any Common Stock not
being issued, the unused Common Stock covered by such Award shall again be
available for the grant of Awards under the Plan.  Further, shares of Common Stock tendered to
the Company by a Participant to exercise an Award shall be added to the number
of shares of Common Stock available for the grant of Awards under the
Plan.  However, in the case of Incentive
Stock Options (as hereinafter defined), the foregoing provisions shall be
subject to any limitations under the Code. 
Shares issued under the Plan may consist in whole or in part of
authorized but unissued shares or treasury shares.

 

(b)   Sub-limits.  Subject to adjustment under Section 10, the
following sub-limits on the number of shares subject to Awards shall apply:

 

(1)           Section 162(m) Per-Participant
Limit.  The maximum number of shares
of Common Stock with respect to which Awards may be granted to any Participant
under the Plan shall be 1,000,000 per
calendar year.  For purposes of the
foregoing limit, the combination of an Option in tandem with an SAR (as each is
hereafter defined) shall be treated as a single Award.  The per-Participant limit described in
this Section 4(b)(1) shall be construed and applied consistently with Section
162(m) of the Code or any successor provision thereto, and the regulations
thereunder (“Section 162(m)”).

 

2

 

(2)           Limit on Awards other than Options
and SARS.  The maximum number of
shares with respect to which Awards other than Options and SARs may be granted
shall be one-half of the number of shares of Common Stock covered by this Plan.

 

5.             Stock Options

 

(a)   General.  The Board may grant options to purchase
Common Stock (each, an “Option”) and determine the number of shares of Common
Stock to be covered by each Option, the exercise price of each Option and the conditions
and limitations applicable to the exercise of each Option, including conditions
relating to applicable federal or state securities laws, as it considers
necessary or advisable.  An Option which
is not intended to be an Incentive Stock Option (as hereinafter defined) shall
be designated a “Nonstatutory Stock Option”.

 

(b)   Incentive
Stock Options.  An Option that the
Board intends to be an “incentive stock option” as defined in Section 422 of
the Code (an “Incentive Stock Option”) shall only be granted to employees of
Bookham, Inc., any of Bookham, Inc.’s present or future parent or subsidiary
corporations as defined in Sections 424(e) or (f) of the Code, and any other
entities the employees of which are eligible to receive Incentive Stock Options
under the Code, and shall be subject to and shall be construed consistently
with the requirements of Section 422 of the Code.  The Company shall have no liability to a
Participant, or any other party, if an Option (or any part thereof) that is
intended to be an Incentive Stock Option is not an Incentive Stock Option or
for any action taken by the Board pursuant to Section 11(f), including without
limitation the conversion of an Incentive Stock Option to a Nonstatutory Stock
Option.

 

(c)   Exercise
Price.  The Board shall establish the
exercise price of each Option and specify such exercise price in the applicable
option agreement; provided, however, that the exercise price shall not be less
than 100% of the Fair Market Value (as defined below) at the time that the
Option is granted.

 

(d)   Duration
of Options.  Each Option shall be
exercisable at such times and subject to such terms and conditions as the Board
may specify in the applicable option agreement; provided, however, that no
Option will be granted for a term in excess of 10 years.

 

(e)   Exercise
of Option.  Options may be exercised
by delivery to the Company of a written notice of exercise signed by the proper
person or by any other form of notice (including electronic notice) approved by
the Board together with payment in full as specified in Section 5(f) for the
number of shares for which the Option is exercised.  Shares of Common Stock subject to the Option
will be delivered by the Company following exercise either as soon as
practicable or, subject to such conditions as the Board shall specify, on a
deferred basis (with the Company’s obligation to be evidenced by an instrument
providing for future delivery of the deferred shares at the time or times
specified by the Board).

 

3

 

(f)      Payment Upon Exercise.  Common Stock purchased upon the exercise of
an Option granted under the Plan shall be paid for as follows:

 

(1)           in cash or by check, payable to the
order of the Company;

 

(2)           except as the Board may otherwise
provide in an option agreement, by (i) delivery of an irrevocable and
unconditional undertaking by a creditworthy broker to deliver promptly to the
Company sufficient funds to pay the exercise price and any required tax
withholding or (ii) delivery by the Participant to the Company of a copy of
irrevocable and unconditional instructions to a creditworthy broker to deliver
promptly to the Company cash or a check sufficient to pay the exercise price
and any required tax withholding;

 

(3)           when the Common Stock is registered
under the Securities Exchange Act of 1934 (the “Exchange Act”), by delivery of
shares of Common Stock owned by the Participant valued at their fair market
value as determined by (or in a manner approved by) the Board (“Fair Market
Value”), provided (i) such method of payment is then permitted under applicable
law, (ii) such Common Stock, if acquired directly from the Company, was owned
by the Participant for such minimum period of time, if any, as may be
established by the Board in its discretion and (iii) such Common Stock is not
subject to any repurchase, forfeiture, unfulfilled vesting or other similar
requirements;

 

(4)           to the extent permitted by applicable
law and by the Board, by (i) delivery of a promissory note of the Participant to
the Company on terms determined by the Board, or (ii) payment of such
other lawful consideration as the Board may determine; or

 

(5)           by any combination of the above
permitted forms of payment.

 

(g)   Substitute
Options.  In connection with a merger
or consolidation of an entity with the Company or the acquisition by the
Company of property or stock of an entity, the Board may grant Options in
substitution for any options or other stock or stock-based awards granted by
such entity or an affiliate thereof.  Substitute
Options may be granted on such terms as the Board deems appropriate in the
circumstances, notwithstanding any limitations on Options contained in the
other sections of this Section 5 or in Section 2.

 

6.             Director Options

 

(a)   Annual
Grant.  On the date of each annual
meeting of stockholders of the Company, the Company shall grant to each member
of the Board of Directors of the Company who is both serving as a director of
the Company immediately prior to and immediately following such annual meeting
and who is not then an employee of the Company or any of its subsidiaries, a
Nonstatutory Stock Option to purchase 5,000 shares of Common Stock (subject to
adjustment under Section 10).

 

(b)   Terms of
Director Options.  Options granted
under this Section 6 shall (i) have an exercise price equal to the closing sale
price (for the primary trading session) of the Common

 

4

 

Stock on The Nasdaq Stock Market or the national securities exchange on
which the Common Stock is then traded on the trading date immediately prior to
the date of grant (and if the Common Stock is not then traded on The Nasdaq
Stock Market or a national securities exchange, the fair market value of the
Common Stock on such date as determined by the Board), (ii) be immediately
exercisable at the time of grant, (iii) expire on the earlier of 10 years from
the date of grant or one year following cessation of service on the Board and
(iv) contain such other terms and conditions as the Board shall determine.

 

(c)   Board
Discretion.  Notwithstanding anything
herein to the contrary, the Board retains the specific authority to from time
to time (i) increase or decrease the number of shares subject to options
granted under Section 6(a), (ii) to make additional grants of Nonstatutory
Stock Options to members of the Board who are not employees of the Company or
any subsidiary of the Company; and (iii) provide conditions or limitations
(such as vesting limitations) applicable to the exercise of options granted
under this Section 6.

 

7.             Stock Appreciation Rights

 

(a)   General. A Stock Appreciation
Right, or SAR, is an Award entitling the holder, upon exercise, to receive an
amount in cash or Common Stock or a combination thereof (such form to be
determined by the Board) determined in whole or in part by reference to
appreciation, from and after the date of grant, in the fair market value of a
share of Common Stock.  SARs may be based
solely on appreciation in the fair market value of Common Stock or on a
comparison of such appreciation with some other measure of market growth such
as (but not limited to) appreciation in a recognized market index.  The date as of which such appreciation or
other measure is determined shall be the exercise date unless another date is
specified by the Board in the SAR Award.

 

(b)   Grants.  Stock Appreciation Rights may be granted in
tandem with, or independently of, Options granted under the Plan.

 

(1)           Tandem
Award.  When Stock
Appreciation Rights are expressly granted in tandem with Options, (i) the Stock
Appreciation Right will be exercisable only at such time or times, and to the
extent, that the related Option is exercisable (except to the extent designated
by the Board in connection with a Reorganization Event) and will be exercisable
in accordance with the procedure required for exercise of the related Option;
(ii) the Stock Appreciation Right will terminate and no longer be exercisable
upon the termination or exercise of the related Option,  except to the extent designated by the Board
in connection with a Reorganization Event and except that a Stock Appreciation
Right granted with respect to less than the full number of shares covered by an
Option will not be reduced until the number of shares as to which the related
Option has been exercised or has terminated exceeds the number of shares not
covered by the Stock Appreciation Right; (iii) the Option will terminate and no
longer be exercisable upon the exercise of the related Stock Appreciation
Right; and (iv) the Stock Appreciation Right will be transferable only with the
related Option.

 

5

 

(2)           Independent
SARs.  A Stock Appreciation Right not
expressly granted in tandem with an Option will become exercisable at such time
or times, and on such conditions, as the Board may specify in the SAR Award.

 

(c)   Exercise.  Stock Appreciation Rights may be exercised by
delivery to the Company of a written notice of exercise signed by the proper
person or by any other form of notice (including electronic notice) approved by
the Board, together with any other documents required by the Board.

 

8.             Restricted Stock

 

(a)   General.  The Board may grant Awards entitling
recipients to acquire shares of Common Stock, subject to the right of the
Company to repurchase all or part of such shares at their issue price or other
stated or formula price (or to require forfeiture of such shares if issued at
no cost) from the recipient in the event that conditions specified by the Board
in the applicable Award are not satisfied prior to the end of the applicable
restriction period or periods established by the Board for such Award (each, a “Restricted
Stock Award”).

 

(b)   Terms
and Conditions.  The Board shall
determine the terms and conditions of a Restricted Stock Award, including the
conditions for repurchase (or forfeiture) and the issue price, if any.

 

(c)   Stock
Certificates.  Any stock certificates
issued in respect of a Restricted Stock Award shall be registered in the name
of the Participant and, unless otherwise determined by the Board, deposited by
the Participant, together with a stock power endorsed in blank, with the
Company (or its designee).  At the
expiration of the applicable restriction periods, the Company (or such
designee) shall deliver the certificates no longer subject to such restrictions
to the Participant or if the Participant has died, to the beneficiary
designated, in a manner determined by the Board, by a Participant to receive
amounts due or exercise rights of the Participant in the event of the
Participant’s death (the “Designated Beneficiary”).  In the absence of an effective designation by
a Participant, “Designated Beneficiary” shall mean the Participant’s estate.

 

(d)   Deferred
Delivery of Shares.  The Board may,
at the time any Restricted Stock Award is granted, provide that, at the time
Common Stock would otherwise be delivered pursuant to the Award, the
Participant shall instead receive an instrument evidencing the right to future
delivery of Common Stock at such time or times, and on such conditions, as the
Board shall specify.  The Board may at
any time accelerate the time at which delivery of all or any part of the Common
Stock shall take place.  The Board may also
permit an exchange of unvested shares of Common Stock that have already been
delivered to a Participant for an instrument evidencing the right to future
delivery of Common Stock at such time or times, and on such conditions, as the
Board shall specify.

 

6

 

9.             Other Stock-Based Awards.

 

Other Awards of shares of Common Stock, and other
Awards that are valued in whole or in part by reference to, or are otherwise
based on, shares of Common Stock or other property, may be granted hereunder to
Participants (“Other Stock Unit Awards”), including without limitation Awards
entitling recipients to receive shares of Common Stock to be delivered in the
future.  Such Other Stock Unit Awards
shall also be available as a form of payment in the settlement of other Awards
granted under the Plan or as payment in lieu of compensation to which a
Participant is otherwise entitled.  Other
Stock Unit Awards may be paid in shares of Common Stock or cash, as the Board
shall determine.  Subject to the
provisions of the Plan, the Board shall determine the conditions of each Other
Stock Unit Awards, including any purchase price applicable thereto.  At the time any Award is granted, the Board
may provide that, at the time Common Stock would otherwise be delivered
pursuant to the Award, the Participant will instead receive an instrument
evidencing the Participant’s right to future delivery of the Common Stock.

 

10.           Adjustments for Changes in Common Stock and
Certain Other Events.

 

(a)   Changes
in Capitalization.  In the event of
any stock split, reverse stock split, stock dividend, recapitalization,
combination of shares, reclassification of shares, spin-off or other similar
change in capitalization or event, or any distribution to holders of Common
Stock other than an ordinary cash dividend, (i) the number and class of
securities available under this Plan, (ii) the sub-limits set forth in Section
4(b), (iii) the number and class of securities and exercise price per share of
each outstanding Option and each Option issuable under Section 6, (iv) the
share- and per-share related provisions of each Stock Appreciation Right, (v)
the repurchase price per share subject to each outstanding Restricted Stock
Award and (vi) the share- and per-share-related provisions of each outstanding
Other Stock Unit Award, shall be appropriately adjusted by the Company (or
substituted Awards may be made, if applicable) to the extent determined by the
Board.

 

(b)   Reorganization
Events.

 

(1)           Definition.  A “Reorganization Event” shall mean:  (a) any merger or consolidation of the
Company with or into another entity as a result of which all of the Common
Stock of the Company is converted into or exchanged for the right to receive
cash, securities or other property or is cancelled (b) any exchange of all of
the Common Stock of the Company for cash, securities or other property pursuant
to a share exchange transaction or (c) any liquidation or dissolution of
the Company.

 

(2)           Consequences of a Reorganization
Event on Awards Other than Restricted Stock Awards.  In connection with a Reorganization Event,
the Board shall take any one or more of the following actions as to all or any
outstanding Awards on such terms as the Board determines:  (i) provide that Awards shall be
assumed, or substantially equivalent Awards shall be substituted, by the
acquiring or succeeding corporation (or an affiliate thereof), (ii) upon
written notice to a Participant, provide that the Participant’s unexercised
Options or other unexercised Awards shall

 

7

 

become
exercisable in full and will terminate immediately prior to the consummation of
such Reorganization Event unless exercised by the Participant within a
specified period following the date of such notice, (iii) provide that
outstanding Awards shall become realizable or deliverable, or restrictions
applicable to an Award shall lapse, in whole or in part prior to or upon such
Reorganization Event, (iv) in the event of a Reorganization Event under
the terms of which holders of Common Stock will receive upon consummation thereof
a cash payment for each share surrendered in the Reorganization Event (the “Acquisition
Price”), make or provide for a cash payment to a Participant equal to
(A) the Acquisition Price times the number of shares of Common Stock
subject to the Participant’s Options or other Awards (to the extent the
exercise price does not exceed the Acquisition Price) minus (B) the aggregate
exercise price of all such outstanding Options or other Awards, in exchange for
the termination of such Options or other Awards, (v) provide that, in
connection with a liquidation or dissolution of the Company, Awards shall
convert into the right to receive liquidation proceeds (if applicable, net of
the exercise price thereof) and (vi) any combination of the foregoing.

 

For purposes of clause (i) above, an Option shall be
considered assumed if, following consummation of the Reorganization Event, the
Option confers the right to purchase, for each share of Common Stock subject to
the Option immediately prior to the consummation of the Reorganization Event,
the consideration (whether cash, securities or other property) received as a
result of the Reorganization Event by holders of Common Stock for each share of
Common Stock held immediately prior to the consummation of the Reorganization Event
(and if holders were offered a choice of consideration, the type of
consideration chosen by the holders of a majority of the outstanding shares of
Common Stock); provided, however, that if the consideration received as a
result of the Reorganization Event is not solely common stock of the acquiring
or succeeding corporation (or an affiliate thereof), the Company may, with the
consent of the acquiring or succeeding corporation, provide for the
consideration to be received upon the exercise of Options to consist solely of
common stock of the acquiring or succeeding corporation (or an affiliate
thereof) equivalent in fair market value to the per share consideration
received by holders of outstanding shares of Common Stock as a result of the
Reorganization Event.

 

To the extent all or any portion of an Option becomes
exercisable solely as a result of clause (ii) above, the Board may provide that
upon exercise of such Option the Participant shall receive shares subject to a
right of repurchase by the Company or its successor at the Option exercise
price; such repurchase right (x) shall lapse at the same rate as the Option
would have become exercisable under its terms and (y) shall not apply to any
shares subject to the Option that were exercisable under its terms without
regard to clause (ii) above.

 

(3)           Consequences of a Reorganization
Event on Restricted Stock Awards. 
Upon the occurrence of a Reorganization Event other than a liquidation
or dissolution of the Company, the repurchase and other rights of the Company
under each outstanding Restricted Stock Award shall inure to the benefit of the
Company’s successor and shall apply to the cash, securities or other property
which the Common Stock was converted into or exchanged for pursuant to such
Reorganization Event in the same manner and to the same extent as they applied
to the Common Stock subject to such Restricted Stock Award.  Upon the occurrence of a Reorganization Event

 

8

 

involving
the liquidation or dissolution of the Company, except to the extent
specifically provided to the contrary in the instrument evidencing any
Restricted Stock Award or any other agreement between a Participant and the
Company, all restrictions and conditions on all Restricted Stock Awards then
outstanding shall automatically be deemed terminated or satisfied.

 

11.           General Provisions Applicable to Awards

 

(a)   Transferability
of Awards.  Except as the Board may
otherwise determine or provide in an Award, Awards shall not be sold, assigned,
transferred, pledged or otherwise encumbered by the person to whom they are
granted, either voluntarily or by operation of law, except by will or the laws
of descent and distribution or, other than in the case of an Incentive Stock
Option, pursuant to a qualified domestic relations order, and, during the life
of the Participant, shall be exercisable only by the Participant.  References to a Participant, to the extent
relevant in the context, shall include references to authorized transferees.

 

(b)   Documentation.  Each Award shall be evidenced in such form
(written, electronic or otherwise) as the Board shall determine.  Each Award may contain terms and conditions
in addition to those set forth in the Plan.

 

(c)   Board
Discretion.  Except as otherwise provided
by the Plan, each Award may be made alone or in addition or in relation to any
other Award.  The terms of each Award
need not be identical, and the Board need not treat Participants uniformly.

 

(d)   Termination
of Status.  The Board shall determine
the effect on an Award of the disability, death, retirement, authorized leave
of absence or other change in the employment or other status of a Participant
and the extent to which, and the period during which, the Participant, or the
Participant’s legal representative, conservator, guardian or Designated
Beneficiary, may exercise rights under the Award.

 

(e)   Withholding.  Each Participant shall pay to the Company, or
make provision satisfactory to the Company for payment of, any taxes required
by law to be withheld in connection with an Award to such Participant.  Except as the Board may otherwise provide in
an Award, for so long as the Common Stock is registered under the Exchange Act,
Participants may satisfy such tax obligations in whole or in part by delivery
of shares of Common Stock, including shares retained from the Award creating
the tax obligation, valued at their Fair Market Value; provided, however,
except as otherwise provided by the Board, that the total tax withholding where
stock is being used to satisfy such tax obligations cannot exceed the Company’s
minimum statutory withholding obligations (based on minimum statutory
withholding rates for federal and state tax purposes, including payroll taxes,
that are applicable to such supplemental taxable income).  Shares surrendered to satisfy tax withholding
requirements cannot be subject to any repurchase, forfeiture, unfulfilled
vesting or other similar requirements. 
The Company may, to the extent permitted by law, deduct any such tax
obligations from any payment of any kind otherwise due to a Participant.

 

9

 

(f)    Amendment
of Award.  The Board may amend,
modify or terminate any outstanding Award, including but not limited to,
substituting therefor another Award of the same or a different type, changing
the date of exercise or realization, and converting an Incentive Stock Option
to a Nonstatutory Stock Option, provided that the Participant’s consent to such
action shall be required unless the Board determines that the action, taking
into account any related action, would not materially and adversely affect the
Participant.

 

(g)   Conditions
on Delivery of Stock.  The Company
will not be obligated to deliver any shares of Common Stock pursuant to the
Plan or to remove restrictions from shares previously delivered under the Plan
until (i) all conditions of the Award have been met or removed to the
satisfaction of the Company, (ii) in the opinion of the Company’s counsel,
all other legal matters in connection with the issuance and delivery of such
shares have been satisfied, including any applicable securities laws and any
applicable stock exchange or stock market rules and regulations, and (iii) the
Participant has executed and delivered to the Company such representations or
agreements as the Company may consider appropriate to satisfy the requirements
of any applicable laws, rules or regulations.

 

(h)   Acceleration.  The Board may at any time provide that any
Award shall become immediately exercisable in full or in part, free of some or
all restrictions or conditions, or otherwise realizable in full or in part, as
the case may be.

 

12.           Miscellaneous

 

(a)   No Right
To Employment or Other Status.  No
person shall have any claim or right to be granted an Award, and the grant of
an Award shall not be construed as giving a Participant the right to continued
employment or any other relationship with the Company.  The Company expressly reserves the right at
any time to dismiss or otherwise terminate its relationship with a Participant
free from any liability or claim under the Plan, except as expressly provided
in the applicable Award.

 

(b)   No
Rights As Stockholder.  Subject to
the provisions of the applicable Award, no Participant or Designated
Beneficiary shall have any rights as a stockholder with respect to any shares
of Common Stock to be distributed with respect to an Award until becoming the
record holder of such shares. 
Notwithstanding the foregoing, in the event the Company effects a split
of the Common Stock by means of a stock dividend and the exercise price of and
the number of shares subject to such Option are adjusted as of the date of the
distribution of the dividend (rather than as of the record date for such
dividend), then an optionee who exercises an Option between the record date and
the distribution date for such stock dividend shall be entitled to receive, on
the distribution date, the stock dividend with respect to the shares of Common
Stock acquired upon such Option exercise, notwithstanding the fact that such
shares were not outstanding as of the close of business on the record date for
such stock dividend.

 

(c)   Effective
Date and Term of Plan.  The Plan
shall become effective on the date on which it is adopted by the Board, but no
Award may be granted unless and until the Plan has been approved by the Company’s
stockholders.  No Awards shall be granted
under the Plan after

 

10

 

the completion of 10 years from the earlier of (i) the date on which
the Plan was adopted by the Board or (ii) the date the Plan was approved by the
Company’s stockholders, but Awards previously granted may extend beyond that
date.

 

(d)   Amendment
of Plan.  The Board may amend,
suspend or terminate the Plan or any portion thereof at any time; provided
that, to the extent determined by the Board, no amendment requiring stockholder
approval under any applicable legal, regulatory or listing requirement shall
become effective until such stockholder approval is obtained.  No Award shall be made that is conditioned
upon stockholder approval of any amendment to the Plan.

 

(e)   Provisions
for Foreign Participants.  The Board
may modify Awards or Options granted to Participants who are foreign nationals
or employed outside the United States or establish subplans or procedures under
the Plan to recognize differences in laws, rules, regulations or customs of
such foreign jurisdictions with respect to tax, securities, currency, employee
benefits or other matters.

 

(f)    Governing
Law.  The provisions of the Plan and
all Awards made hereunder shall be governed by and interpreted in accordance
with the laws of the State of Delaware, without regard to any applicable
conflicts of law.

 

11

 

BOOKHAM, INC.

 

Incentive Stock
Option Agreement

Granted Under 2004 Stock
Incentive Plan

 

1.             Grant of Option.

 

This agreement evidences the grant by Bookham, Inc., a
Delaware corporation (the “Company”), on [                         ],
20[    ] (the “Grant
Date”) to [                      ],
an employee of [insert name of employing entity] (the “Participant”), of an
option to purchase, in whole or in part, on the terms provided herein and in
the Company’s 2004 Stock Incentive Plan (the “Plan”), a total of [                   ]
shares (the “Shares”) of common stock, $0.01 par
value per share, of the Company (“Common Stock”) at $[   ] per Share.  Unless
earlier terminated, this option shall expire at 5:00 p.m., Pacific time, on [      ],
20[    ] (the “Final
Exercise Date”).

 

It is intended that the option evidenced by this
agreement shall be an incentive stock option as defined in Section 422 of the
Internal Revenue Code of 1986, as amended, and any regulations promulgated
thereunder (the “Code”).  Except as
otherwise indicated by the context, the term “Participant”, as used in this
option, shall be deemed to include any person who acquires the right to
exercise this option validly under its terms.

 

2.             Vesting Schedule.

 

(a)   This option
will become exercisable (“vest”) as to 25% of the original number of Shares on
the first anniversary of the Grant Date and as
to an additional 2.083% of the original number of Shares at the end of each
successive month period
following the first anniversary of the Grant Date until the fourth anniversary
of the Grant Date.

 

(b)   The right
of exercise shall be cumulative so that to the extent the option is not
exercised in any period to the maximum extent permissible it shall continue to
be exercisable, in whole or in part, with respect to all Shares for which it is
vested until the earlier of the Final Exercise Date or the termination of this
option under Section 3 hereof or the Plan.

 

3.             Exercise of Option.

 

(a)   Form of
Exercise.  Each election to exercise
this option shall be in writing, signed by the Participant, and received by the
Company at its principal office, accompanied by this agreement, and payment in
full in the manner provided in the Plan. 
The Participant may purchase less than the number of shares covered
hereby, provided that no partial exercise of this option may be for any
fractional share or for fewer than ten whole shares.

 

 

(b)   Continuous
Relationship with the Company Required. 
Except as otherwise provided in this Section 3, this option may not
be exercised unless the Participant, at the time he or she exercises this
option, is, and has been at all times since the Grant Date, an employee or
officer of, or consultant or advisor to, the Company or any parent or
subsidiary of the Company, as defined in Section 424(e) or (f) of the Code, and
any other business venture (including, without limitation, joint venture or
limited liability company) in which the Company has a controlling interest (an “Eligible
Participant”).

 

(c)   Termination
of Relationship with the Company.

 

(1)           If
the Participant ceases to be an Eligible Participant for any reason, then,
except as provided in paragraphs (d) and (e) below, the right to exercise
this option shall terminate three months
after such cessation (but in no event after the Final Exercise Date), provided
that this option shall be exercisable only to the extent that the
Participant was entitled to exercise this option on the date of such
cessation.  Notwithstanding the
foregoing, if the Participant, prior to the Final Exercise Date, violates the
non-competition or confidentiality provisions of any employment contract,
confidentiality and nondisclosure agreement or other agreement between the
Participant and the Company, the right to exercise this option shall terminate
immediately upon written notice to the Participant from the Company describing such violation.

 

(2)           The Plan and this option shall not
form any part of any contract for services or contract of employment between
the Company or any past or present subsidiary and neither the Plan nor this agreement
shall confer any legal or equitable rights (other than those constituting this
option) on the Participant against the Company or any past or present
subsidiary, directly or indirectly, or give rise to any cause of action in law
or in equity against the Company or any past or present subsidiary;

 

(3)           In no circumstances shall the Participant on ceasing
to hold the consultancy, office or employment by virtue of which he is or may
be eligible to participate in the Plan be entitled to any compensation for any
loss of any right or benefit or prospective right or benefit under the Plan or
this option which he might otherwise have enjoyed (including, without
limitation, the lapse of this options or part thereof by reason of his ceasing
to hold a consultancy position, office or ceasing to be employed by the Company
or any past or present subsidiary) whether such compensation is claimed by way
of damages for wrongful dismissal or other lawful or unlawful breach of
contract or by way of compensation for loss of office or otherwise.

 

(d)   Exercise
Period Upon Death or Disability.  If
the Participant dies or becomes disabled (within the meaning of
Section 22(e)(3) of the Code) prior to the Final Exercise Date while he or
she is an Eligible Participant and the Company has not terminated such
relationship for “cause” as specified in paragraph (e) below, this option shall
be exercisable, within the period of one year following the date of death or
disability of the Participant, by the Participant (or in the case of death by
an authorized transferee), provided  that this option shall be
exercisable only to the extent that this option was exercisable by the
Participant on the date of his or her death or disability, and further provided
that this option shall not be exercisable after the Final Exercise Date.

 

 

(e)   Discharge
for Cause.  If the Participant, prior
to the Final Exercise Date, is discharged by the Company for Cause, the right
to exercise this option shall terminate immediately upon the effective date of
such discharge.  For the purpose of
this  “cause” shall mean 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 which materially and adversely affects the business reputation of
the Company.  The Participant shall be
considered to have been discharged for “cause” if the Company determines in
good faith, within 30 days after the Participant’s resignation, that discharge
for Cause was warranted.

 

(f)    National
Insurance.  As a condition of
exercising this option, the Participant agrees to complete a joint election (in
such form as the Company shall determine) with the Company or any subsidiary of
the Company (as is nominated for this purpose by the Company) for the whole of
any secondary class 1 national insurance contributions which is payable in
respect of that part of the Participant’s relevant employment income which relates
to the holding, exercise, cancellation or release of this option or the holding
or sale of Shares in either case as permitted by paragraph 3A of Schedule 1 to
the Social Security and Benefits Act of 1992, as amended.  [UK
EMPLOYEES ONLY]

 

(g)   Restricted
Shares Election.  As a condition of
exercising this option, the Participant agrees to complete an election under
Section 431(1) of the Income Tax (Earnings and Pensions) Act 2003 for the full
disapplication of Chapter 2 of Part 7 of such Act in relation to all of the
Shares.   [UK EMPLOYEES ONLY]

 

4.             Tax Matters.

 

(a)   Withholding.  No Shares will be issued pursuant to the
exercise of this option unless and until the Participant pays to the Company,
or makes provision satisfactory to the Company for payment of, any [income tax,
national insurance contributions — FOR UK
EMPLOYEES ONLY] federal, state or local withholding taxes agreed to
be or required by law to be withheld in respect of this option.

 

(b)   Disqualifying
Disposition.  If the Participant disposes
of Shares acquired upon exercise of this option within two years from the Grant
Date or one year after such Shares were acquired pursuant to exercise of this
option, the Participant shall notify the Company in writing of such
disposition.

 

5.             Nontransferability of Option.

 

This option may not be sold, assigned, transferred,
pledged or otherwise encumbered by the Participant, either voluntarily or by
operation of law, except by will or the laws of descent and distribution, and,
during the lifetime of the Participant, this option shall be exercisable only
by the Participant.

 

 

6.             Data Protection.

 

The Participant
agrees to the receipt, holding, and processing of information in connection
with the grant, vesting, exercise, taxation and general administration of the
Plan and this option by the Company or any subsidiary of the Company and any of
their advisers or agents and to the transmission of such information outside of
the European Economic Area for this purpose. 
[FOR UK EMPLOYEES ONLY]

 

7.             Provisions of the Plan.

 

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

 

IN WITNESS WHEREOF, the Company has caused this option
to be executed under its corporate seal by its duly authorized officer.  This option shall take effect as a sealed
instrument.

 

	
   

  	
  BOOKHAM,
  INC.

  
	
   

  	
   

  
	
  Dated: 

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
								

 

 

PARTICIPANT’S
ACCEPTANCE

 

The undersigned hereby accepts the foregoing option
and agrees to the terms and conditions thereof. 
The undersigned hereby acknowledges receipt of a copy of the Company’s
2004 Stock Incentive Plan.

 

	
   

  	
  PARTICIPANT:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

BOOKHAM, INC.

 

Incentive Stock
Option Agreement

Granted Under 2004 Stock
Incentive Plan

8.             Grant of Option.

 

This agreement evidences the grant by Bookham, Inc., a
Delaware corporation (the “Company”), on [                     ],
20[    ] (the “Grant
Date”) to [                     ],
an employee of [insert name of employing entity] (the “Participant”), of an
option to purchase, in whole or in part, on the terms provided herein and in
the Company’s 2004 Stock Incentive Plan (the “Plan”), a total of [                      ]
shares (the “Shares”) of common stock, $0.01 par
value per share, of the Company (“Common Stock”) at $[  ] per
Share.  Unless earlier terminated, this
option shall expire at 5:00 p.m., Pacific time, on [          ],
20[  ] (the
“Final Exercise Date”).

 

It is intended that the option evidenced by this
agreement shall be an incentive stock option as defined in Section 422 of the
Internal Revenue Code of 1986, as amended, and any regulations promulgated
thereunder (the “Code”).  Except as
otherwise indicated by the context, the term “Participant”, as used in this
option, shall be deemed to include any person who acquires the right to
exercise this option validly under its terms.

 

9.             Vesting Schedule.

 

(a)   This option
will become exercisable (“vest”) as to 25% of the original number of Shares on
the first anniversary of the Grant Date and as
to an additional 2.083% of the original number of Shares at the end of each
successive month period
following the first anniversary of the Grant Date until the fourth anniversary
of the Grant Date.

 

(b)   The right
of exercise shall be cumulative so that to the extent the option is not
exercised in any period to the maximum extent permissible it shall continue to
be exercisable, in whole or in part, with respect to all Shares for which it is
vested until the earlier of the Final Exercise Date or the termination of this
option under Section 3 hereof or the Plan.

 

(c)   Acceleration
Upon a Change in Control Event

 

(1)           Definitions

 

(a)                                  A
“Change in Control Event” shall mean:

 

(i)                                     the
acquisition by an individual, entity or group (within the meaning of Section
13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”))

 

 

(a “Person”) of beneficial ownership of any
capital stock of the Company if, after such acquisition, such Person
beneficially owns (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) more than 50% of either (x) the then-outstanding shares of common
stock of the Company (the “Company Common Stock”) or (y) the combined voting
power of the then-outstanding securities of the Company entitled to vote
generally in the election of directors (the “Outstanding Company Voting
Securities”); provided, however, that for purposes of this
subsection (i), the following acquisitions shall not constitute a Change in
Control Event: (A) any acquisition directly from the Company (excluding an
acquisition pursuant to the exercise, conversion or exchange of any security
exercisable for, convertible into or exchangeable for common stock or voting
securities of the Company, unless the Person exercising, converting or
exchanging such security acquired such security directly from the Company or an
underwriter or agent of the Company), (B) any acquisition by any employee
benefit plan (or related trust) sponsored or maintained by the Company or any
corporation controlled by the Company, or (C) any acquisition by any
corporation pursuant to a Business Combination (as defined below) which
complies with clauses (x) and (y) of subsection (iii) of this definition; or

 

(ii)                                  such
time as the Continuing Directors (as defined below) do not constitute a
majority of the Board of Directors of the Company (or, if applicable, the Board
of Directors of a successor corporation to the Company), where the term “Continuing
Director” means at any date a member of the 
Board of Directors of the Company (x) who was a member of such Board as
of September 22, 2004 or (y) who was nominated or elected subsequent to such
date by at least a majority of the directors who were Continuing Directors at
the time of such nomination or election or whose election to such 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,
however, that there shall be excluded from this clause (y) any
individual whose 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 consents, by or on behalf of a person other than such Board; or

 

(iii)                               the
consummation of a merger, consolidation, reorganization, recapitalization or
share exchange involving the Company or a sale or other disposition of all or
substantially all of the assets of the Company (a “Business Combination”),
unless, immediately following such Business Combination, each of the following
two conditions is satisfied: (x) all or substantially all of the individuals
and entities who were the beneficial owners of the Outstanding Company Common
Stock and Outstanding Company Voting Securities immediately prior to such
Business Combination beneficially own, directly or indirectly, more than 50% of
the then-outstanding shares of common stock and the combined voting power of
the then-outstanding securities entitled to vote generally in the election of
directors, respectively, of the resulting or acquiring corporation in such
Business Combination (which shall include, without limitation, a corporation
which as a result of such transaction owns the Company or substantially all of
the Company’s assets either directly or through one or more subsidiaries) (such
resulting or acquiring corporation is referred to herein as the “Acquiring
Corporation”) in substantially the same proportions as their ownership of the
Outstanding Company Common Stock and Outstanding Company Voting Securities,
respectively, immediately prior to such Business Combination and (y) no Person
(excluding the Acquiring Corporation or any employee benefit plan (or related
trust) maintained or sponsored by the Company or by the Acquiring Corporation)
beneficially owns, directly or indirectly, more than 50% of the
then-outstanding shares of common stock of the Acquiring Corporation, or of the
combined voting power of the then-outstanding securities of such corporation
entitled to vote generally in the election of directors (except to the extent
that such ownership existed prior to the Business Combination).

 

(b)                                 “Good
Reason” shall mean any significant diminution in the Participant’s title,
authority, or responsibilities from and after the Change in Control Event, any
reduction in the annual cash compensation payable to the Participant from and
after such Change in Control Event or the relocation of the place of business

 

 

at which the Participant is principally
located to a location that is greater than 50 miles from its location
immediately prior to such Change in Control Event.

 

(c)                                  “Cause”
shall mean 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 which materially and adversely affects the
business reputation of the Company.  The
Participant shall be considered to have been discharged for “Cause” if the
Company determines in good faith, within 30 days after the Participant’s
resignation, that discharge for Cause was warranted.

 

(2)           Acceleration of Vesting Schedule.  Upon the occurrence of a Change in Control
Event, the Option shall become immediately exercisable in full if, on or prior
to the one-year anniversary of the date of the Change in Control Event, the
Participant’s employment with the Company is terminated for Good Reason by the
Participant or is terminated without Cause by the Company.

 

10.           Exercise of Option.

 

(a)   Form of
Exercise.  Each election to exercise
this option shall be in writing, signed by the Participant, and received by the
Company at its principal office, accompanied by this agreement, and payment in
full in the manner provided in the Plan. 
The Participant may purchase less than the number of shares covered
hereby, provided that no partial exercise of this option may be for any
fractional share or for fewer than ten whole shares.

 

(b)   Continuous
Relationship with the Company Required. 
Except as otherwise provided in this Section 3, this option may not
be exercised unless the Participant, at the time he or she exercises this
option, is, and has been at all times since the Grant Date, an employee or
officer of, or consultant or advisor to, the Company or any parent or
subsidiary of the Company, as defined in Section 424(e) or (f) of the Code, and
any other business venture (including, without limitation, joint venture or
limited liability company) in which the Company has a controlling interest (an “Eligible
Participant”).

 

(c)   Termination
of Relationship with the Company.

 

(1)           If
the Participant ceases to be an Eligible Participant for any reason, then,
except as provided in paragraphs (d), (e) and (f) below, the right to
exercise this option shall terminate three months
after such cessation (but in no event after the Final Exercise Date), provided
that this option shall be exercisable only to the extent that the
Participant was entitled to exercise this option on the date of such
cessation.  Notwithstanding the
foregoing, if the Participant, prior to the Final Exercise Date, violates the
non-competition or confidentiality provisions of any employment contract,
confidentiality and nondisclosure agreement or other agreement between

 

 

the
Participant and the Company, the right to exercise this option shall terminate
immediately upon written notice to the Participant from the Company describing such violation.

 

(2)           The Plan and this option shall not
form any part of any contract for services or contract of employment between
the Company or any past or present subsidiary and neither the Plan nor this
agreement shall confer any legal or equitable rights (other than those
constituting this option) on the Participant against the Company or any past or
present subsidiary, directly or indirectly, or give rise to any cause of action
in law or in equity against the Company or any past or present subsidiary;

 

(3)           In no circumstances shall the Participant on ceasing
to hold the consultancy, office or employment by virtue of which he is or may
be eligible to participate in the Plan be entitled to any compensation for any
loss of any right or benefit or prospective right or benefit under the Plan or
this option which he might otherwise have enjoyed (including, without
limitation, the lapse of this options or part thereof by reason of his ceasing
to hold a consultancy position, office or ceasing to be employed by the Company
or any past or present subsidiary) whether such compensation is claimed by way
of damages for wrongful dismissal or other lawful or unlawful breach of
contract or by way of compensation for loss of office or otherwise.

 

(d)   Exercise
Period Upon Death or Disability.  If
the Participant dies or becomes disabled (within the meaning of
Section 22(e)(3) of the Code) prior to the Final Exercise Date while he or
she is an Eligible Participant and the Company has not terminated such
relationship for Cause, this option shall be exercisable, within the period of
one year following the date of death or disability of the Participant, by the
Participant (or in the case of death by an authorized transferee), provided
that this option shall be exercisable only to the extent that this
option was exercisable by the Participant on the date of his or her death or
disability, and further provided that this option shall not be exercisable
after the Final Exercise Date.

 

(e)   Discharge
for Cause.  If the Participant, prior
to the Final Exercise Date, is discharged by the Company for Cause, the right
to exercise this option shall terminate immediately upon the effective date of
such discharge.

 

(f)    Exercise
Period Upon a Change of Control.   If
the Participant, prior to the Final Exercise Date, is discharged by the
Company, other than for Cause, on or after a Change in Control, the Participant
shall have the right to exercise this option up to and including the date which
is the later of (i) that date otherwise provided in this Section 3 or (ii) 18
months following the Change in Control (but in no event after the Final
Exercise Date).

 

(g)   National
Insurance.  As a condition of
exercising this option, the Participant agrees to complete a joint election (in
such form as the Company shall determine) with the Company or any subsidiary of
the Company (as is nominated for this purpose by the Company) for the whole of
any secondary class 1 national insurance contributions which is payable in
respect of that part of the Participant’s relevant employment income which
relates to the holding, exercise, cancellation or release of this option or the
holding or sale of Shares in either case as permitted

 

 

by paragraph 3A of Schedule 1 to the Social Security and Benefits Act
of 1992, as amended.  [UK EMPLOYEES ONLY]

 

(h)   Restricted
Shares Election.  As a condition of
exercising this option, the Participant agrees to complete an election under
Section 431(1) of the Income Tax (Earnings and Pensions) Act 2003 for the full
disapplication of Chapter 2 of Part 7 of such Act in relation to all of the
Shares.   [UK EMPLOYEES ONLY]

 

11.           Tax Matters.

 

(a)   Withholding.  No Shares will be issued pursuant to the
exercise of this option unless and until the Participant pays to the Company,
or makes provision satisfactory to the Company for payment of, any [income tax,
national insurance contributions — FOR UK
EMPLOYEES ONLY] federal, state or local withholding taxes agreed to
be or required by law to be withheld in respect of this option.

 

(b)   Disqualifying
Disposition.  If the Participant
disposes of Shares acquired upon exercise of this option within two years from
the Grant Date or one year after such Shares were acquired pursuant to exercise
of this option, the Participant shall notify the Company in writing of such
disposition.

 

12.           Nontransferability of Option.

 

This option may not be sold, assigned, transferred,
pledged or otherwise encumbered by the Participant, either voluntarily or by
operation of law, except by will or the laws of descent and distribution, and,
during the lifetime of the Participant, this option shall be exercisable only
by the Participant.

 

13.           Data Protection.

 

The Participant
agrees to the receipt, holding, and processing of information in connection
with the grant, vesting, exercise, taxation and general administration of the
Plan and this option by the Company or any subsidiary of the Company and any of
their advisers or agents and to the transmission of such information outside of
the European Economic Area for this purpose. 
[FOR UK EMPLOYEES ONLY]

 

14.           Provisions of the Plan.

 

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

 

 

IN WITNESS WHEREOF, the Company has caused this option
to be executed under its corporate seal by its duly authorized officer.  This option shall take effect as a sealed
instrument.

 

	
   

  	
  BOOKHAM,
  INC.

  
	
   

  	
   

  
	
  Dated: 

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
								

 

 

PARTICIPANT’S
ACCEPTANCE

 

The undersigned hereby accepts the foregoing option
and agrees to the terms and conditions thereof. 
The undersigned hereby acknowledges receipt of a copy of the Company’s
2004 Stock Incentive Plan.

 

	
   

  	
  PARTICIPANT:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

BOOKHAM, INC.

 

Nonstatutory Stock
Option Agreement

Granted Under 2004 Stock Incentive Plan

 

15.           Grant of Option.

 

This agreement evidences the grant by Bookham, Inc., a
Delaware corporation (the “Company”), on                 ,
200[  ] (the “Grant Date”) to [                 ],
an [employee], [consultant], [director] of the Company (the “Participant”), of
an option to purchase, in whole or in part, on the terms provided herein and in
the Company’s 2004 Stock Incentive Plan (the “Plan”), a total of [                   ]
shares (the “Shares”) of common stock, $0.01 par value per share, of the
Company (“Common Stock”) at $[             ]
per Share. Unless earlier terminated, this option shall expire at 5:00 p.m.,
Eastern time, on [                   ] (the “Final Exercise Date”).

 

It is intended that the option evidenced by this
agreement shall not be an incentive stock option as defined in Section 422 of
the Internal Revenue Code of 1986, as amended, and any regulations promulgated
thereunder (the “Code”).  Except as
otherwise indicated by the context, the term “Participant”, as used in this
option, shall be deemed to include any person who acquires the right to
exercise this option validly under its terms.

 

16.           Vesting Schedule.

 

This option will become exercisable (“vest”) as to          %
of the original number of Shares on the [first] anniversary of the Grant Date
and as to an additional           
% of the original number of Shares at the end of each successive [three-month] period
following the first anniversary of the Grant Date until the [fourth]
anniversary of the Grant Date.

 

The right of exercise shall be cumulative so that to the
extent the option is not exercised in any period to the maximum extent
permissible it shall continue to be exercisable, in whole or in part, with
respect to all Shares for which it is vested until the earlier of the Final
Exercise Date or the termination of this option under Section 3 hereof or the
Plan.

 

17.           Exercise of Option.

 

(a)   Form of
Exercise.  Each election to exercise
this option shall be in writing, signed by the Participant, and received by the
Company at its principal office, accompanied by this agreement, and payment in
full in the manner provided in the Plan. 
The Participant may purchase less than the number of shares covered
hereby, provided that no partial exercise of this option may be for any fractional
share or for fewer than ten whole shares.

 

(b)   Continuous
Relationship with the Company Required. 
Except as otherwise provided in this Section 3, this option may not
be exercised unless the Participant, at the time he or she

 

 

exercises this option, is, and has been at all times since the Grant
Date, an [employee or officer of], or consultant or advisor to, the Company or
any other entity the employees, officers, directors, consultants, or advisors
of which are eligible to receive option grants under the Plan (an “Eligible
Participant”).

 

(c)   Termination
of Relationship with the Company.  If
the Participant ceases to be an Eligible Participant for any reason, then,
except as provided in paragraphs (d) and (e) below, the right to exercise
this option shall terminate [three] months
after such cessation (but in no event after the Final Exercise Date), provided
that this option shall be exercisable only to the extent that the
Participant was entitled to exercise this option on the date of such
cessation.  Notwithstanding the
foregoing, if the Participant, prior to the Final Exercise Date, violates the
non-competition or confidentiality provisions of any employment contract,
confidentiality and nondisclosure agreement or other agreement between the
Participant and the Company, the right to exercise this option shall terminate
immediately upon written notice to the Participant from the Company describing
such violation.

 

(d)   Exercise
Period Upon Death or Disability.  If
the Participant dies or becomes disabled (within the meaning of
Section 22(e)(3) of the Code) prior to the Final Exercise Date while he or
she is an Eligible Participant and the Company has not terminated such
relationship for “cause” as specified in paragraph (e) below, this option shall
be exercisable, within the period of [one year] following the date of death or
disability of the Participant, by the Participant (or in the case of death by
an authorized transferee), provided  that this option shall be
exercisable only to the extent that this option was exercisable by the Participant
on the date of his or her death or disability, and further provided that this
option shall not be exercisable after the Final Exercise Date.

 

(e)   Discharge
for Cause.  If the Participant, prior
to the Final Exercise Date, is discharged by the Company for “cause” (as
defined below), the right to exercise this option shall terminate immediately
upon the effective date of such discharge. 
“Cause” shall mean willful misconduct by the Participant or willful
failure by the Participant to perform his or her responsibilities to the
Company (including, without limitation, breach by the Participant of any
provision of any employment, consulting, advisory, nondisclosure,
non-competition or other similar agreement between the Participant and the
Company), as determined by the Company, which determination shall be
conclusive.  The Participant shall be
considered to have been discharged for “Cause” if the Company determines,
within 30 days after the Participant’s resignation, that discharge for cause
was warranted.

 

18.           Withholding.

 

No Shares will be issued pursuant to the exercise of
this option unless and until the Participant pays to the Company, or makes
provision satisfactory to the Company for payment of, any federal, state or
local withholding taxes required by law to be withheld in respect of this
option.

 

 

19.           Nontransferability of Option.

 

This option may not be sold, assigned, transferred,
pledged or otherwise encumbered by the Participant, either voluntarily or by
operation of law, except by will or the laws of descent and distribution, and,
during the lifetime of the Participant, this option shall be exercisable only
by the Participant.

 

20.           Provisions of the Plan.

 

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

 

IN WITNESS WHEREOF, the Company has caused this option
to be executed under its corporate seal by its duly authorized officer.  This option shall take effect as a sealed
instrument.

 

	
   

  	
  BOOKHAM,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated: 

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
								

 

 

PARTICIPANT’S
ACCEPTANCE

The undersigned hereby accepts the foregoing option
and agrees to the terms and conditions thereof. 
The undersigned hereby acknowledges receipt of a copy of the Company’s
2004 Stock Incentive Plan.

 

	
   

  	
  PARTICIPANT:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

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