Document:

exv10w4

 

Exhibit 10.4

BOOKHAM, INC.

RULES

of the

BOOKHAM, INC.

2004 STOCK INCENTIVE PLAN

UK INLAND REVENUE APPROVED SUB-PLAN

(UK Sub-Plan adopted by the Board on

January 25, 2005 and approved by the UK Inland Revenue

on l 2004 under reference X22847)

Alder Castle

10 Noble Street

London EC2V 7QJ

Tel: 020 7645 2711

Fax: 020 7645 2424

 

 

BOOKHAM, INC. 2004 STOCK INCENTIVE PLAN

UK INLAND REVENUE APPROVED SUB-PLAN

	1.  	Purpose

     This UK Inland Revenue Approved Sub-Plan (the “Sub-Plan”) has been established by resolution
of Board of Directors (the “Board”) of Bookham, Inc. a Delaware Corporation (the “Company”), as a
sub-plan to the Bookham, Inc. 2004 Stock Incentive Plan (the “Main Plan”) pursuant to Section 12(e)
of the Main Plan (provisions for foreign participants).

For the avoidance of doubt:

	(a)  	the terms of the Main Plan shall govern all Options granted hereunder unless otherwise set
forth in this Sub-Plan provided always that Options granted under this Sub-Plan may not be
subject to a cash alternative;
	 
	(b)  	Options granted under this Sub-Plan shall be taken into account for the purposes of the limit
specified in Section 4(a) of the Main Plan;
	 
	(c)  	Section 5(g) and Sections 6 — 9 (inclusive) of the Main Plan shall not apply to Options
granted under this Sub-Plan; and
	 
	(d)  	in the event of any conflict between the rules of the Main Plan and the Sub-Plan, the rules
of the Sub-Plan shall take precedence in respect of Options granted under the Sub-Plan.
	 
	2.  	Eligibility

     Any full time director of any Group Company employed under a contract of employment with a
Group Company who devotes not less than twenty-five hours per week (excluding meal breaks) to his
duties and any employees of any Group Company (but excluding in either case any person ineligible
to participate in this Sub-Plan under the terms of paragraph 9 of Schedule 4) are eligible to be
granted options under the Sub-Plan. Each person who receives an Option under the Sub-Plan is
deemed a “Participant”.

	3.  	Administration and Delegation

     (a) Administration by Board of Directors. The Sub-Plan will be administered by the
Board. The Board shall have authority to grant Options and to adopt, amend and repeal such
administrative rules, guidelines and practices relating to the Sub-Plan as it shall deem advisable.
The Board may correct any defect, supply any omission or reconcile any inconsistency in the
Sub-Plan or any Option in the manner and to the extent it shall deem expedient to carry the
Sub-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 Sub-Plan or in any Option. 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 Sub-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 Sub-Plan to one or more committees or

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subcommittees of the Board (a “Committee”). All references in the Sub-Plan to the “Board”
shall mean the Board or a Committee of the Board or the officers referred to in Section 3(c) below
to the extent that the Board’s powers or authority under the Sub-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 Options to those eligible to
participate in accordance with Section 2 of the Sub-Plan and to exercise such other powers under
the Sub-Plan as the Board may determine, provided that the Board shall fix the terms of the Options
to be granted by such officers (including the exercise price of such Options, which may include a
formula by which the exercise price will be determined) and the maximum number of shares subject to
Options that the officers may grant; provided further, however, that no officer shall be authorized
to grant Options 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 Options

     (a) Number of Shares. Subject to adjustment under Section 6, Options may be made
under the Sub-Plan for up to that number of shares of common stock, $0.01 par value per share, of
the Company (the “Common Stock”) (provided that such Common Stock meets the requirements of
paragraphs 16-20 (inclusive) of Schedule 4) which equals 4,000,000 less the number of shares of
Common Stock which have been subject to Awards under the Main Plan. If any Option expires or is
terminated, surrendered or canceled without having been fully exercised or is forfeited in whole or
in part or results in any Common Stock not being issued, the unused Common Stock covered by such
Option shall again be available for the grant of Options under the Main Plan or the Sub-Plan.
Shares issued under the Sub-Plan may consist in whole or in part of authorized but unissued shares
or treasury shares.

     (b) Inland Revenue limit per participant. Any Option granted to a Participant pursuant
to this Sub-Plan shall be limited and take effect so that the aggregate of the Market Value of
Common Stock which a Participant may acquire in pursuance of rights previously obtained but not
exercised under this Sub-Plan or under any other plan (not being a savings-related share option
plan) approved under Schedule 4 established by the Company or by any associated company of the
Company (within the meaning of paragraph 35 of Schedule 4) shall not exceed or further exceed GB
£30,000 sterling or such other limit as may from time to time be imposed by paragraph 6 of Schedule
4. The term “Market Value” has the meaning ascribed by Part 8 of the UK Taxation of Chargeable
Gains Act 1992. For the purposes of this Section 4(b):

          (1) the Market Value of Common Stock shall be calculated as at the time when the rights in
relation to that stock were obtained, or in a case where an agreement relating to them has been
made under paragraph 22 of Schedule 4, such earlier time or times as may be provided in the
agreement; and

          (2) the US dollar value of the Common Stock shall be converted to GB sterling by reference to
the closing mid-market US$:GB£ exchange rate on the business day immediately preceding the day on
which such calculation is made as published in the relevant edition of the Financial Times.

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	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 (subject to Section 5(c) below) and the conditions and limitations applicable to the
exercise of each Option as it considers necessary or advisable provided that any performance based
conditions satisfy the requirements of Section 5(b) below.

     (b) Performance Conditions. In accordance with the Board’s powers under Section 5(b)
above, an Option may be granted subject to such performance related objective condition or
conditions of exercise as the Board may determine provided that any such condition or conditions
shall be set out in the documentation evidencing that Option. In circumstances where an event or
events occur the Board, in its discretion acting fairly and reasonably, may amend, relax or waive
such condition or conditions provided that any amendment, relaxation or waiver does not result in
the Option being subject to a condition or conditions which is/are more difficult to satisfy than
those which applied immediately prior to such amendment, relaxation or waiver.

     (c) Exercise Price. The Board shall establish the exercise price of each Option and
specify such exercise price in the applicable option agreement. The exercise price shall not be
manifestly less than the Market Value, as that term is defined in Section 4(b) of this Sub-Plan:

          (1) as at the date of grant of that Option; or

          (2) at the Board’s discretion, the day immediately preceding the date of grant; or

          (3) at the Board’s discretion, at such earlier time or times as the Board may determine (with
the previous agreement of the Inland Revenue),

in each case as agreed in advance with Shares Valuation of the Inland Revenue.

     (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.

     (e) Exercise of Options. 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 provided always that no Option shall be
exercisable at a time when the Participant is ineligible to participate in this Sub-Plan under the
terms of paragraph 9 of Schedule 4.

     (f) Payment Upon Exercise. Common Stock purchased upon the exercise of an Option
granted under the Sub-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

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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; or

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

     (g) Issue or transfer of Common Stock. Within 30 days of the proper exercise of an
Option, the Company shall issue or procure the transfer of Common Stock in respect of which the
Option has been exercised to the Participant. Common Stock issued to a Participant shall, save
for any rights determined by reference to a date preceding the date of issue, shall rank pari passu
with other shares of the same class in issue at the date of issue to the Participant.

	6.  	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 or other
similar change in capitalization or event, or any distribution to holders of Common Stock other
than an ordinary cash dividend (in all cases provided that such events fall within paragraph 22(3)
of Schedule 4):

          (1) the number and description of securities available under this Sub-Plan; and

          (2) the number and description of securities and exercise price per share of each outstanding
Option,

shall be appropriately adjusted by the Company to the extent determined by the Board (subject to
prior approval of the Inland Revenue so long as the Sub-Plan is approved under Schedule 4 by the
Inland Revenue).

     (b) Reorganization Events.

          (1) Definition. A “Reorganization Event” shall mean: (i) 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,
(ii) any exchange of all of the Common Stock of the Company for cash, securities or other property
pursuant to a share exchange transaction or (iii) any liquidation or dissolution of the Company.

          (2) Consequences of a Reorganization Event. In connection with a Reorganization
Event, the Board may as to all or any outstanding Options on such terms as the Board determines
upon written notice to a Participant, provide that the Participant’s unexercised Options shall
become exercisable in full and will terminate immediately prior to the consummation of such
Reorganization Event (or such later date as such written notice may specify) unless exercised by
the Participant within a specified period following the date of such notice.

          (3) Further consequences of a Reorganization Event.

               (i) If as a result of any Reorganization Event which is also an Acquisition Event an Acquiring
Company obtains Control of the Company any Participant

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may, at any time within the Appropriate Period, by agreement with the Acquiring Company,
release any Option which has not lapsed (the “Old Option”) in consideration for the grant to him of
an option (the “New Option”) which (for the purposes of paragraph 27 of Schedule 4) is equivalent
to the Old Option but relates to shares in a different company (whether the Acquiring Company
itself or some other company falling within paragraph 16(b) or paragraph 16(c) of Schedule 4).

               (ii) The New Option shall not be regarded for the purposes of Section 6(b)(3)(i) above as
equivalent to the Old Option unless the conditions set out in Paragraph 27(4) of Schedule 4 are
satisfied, but so that the provisions of the Sub-Plan shall for this purpose be construed as if:

	 	(aa)  	the New Option were an option
granted under the Sub-Plan at the same time as the Old Option;
	 
	 	(bb)  	except for the purposes of the
definition of “Group Company”, the reference to “Bookham, Inc.”
in the definition of the Company in Section 1 of the Sub-Plan
was a reference to the different company mentioned in Section
6(b)(3)(i).

               (iii) Options under this Sub-Plan not terminated, exercised or exchanged prior to the expiry
of the Appropriate Period shall terminate.

	7.  	General Provisions Applicable to Options

     (a) Transferability of Options. Options 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 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 Option shall be evidenced in such form (written, electronic
or otherwise) as the Board shall determine. Each Option may contain terms and conditions in
addition to those set forth in the Sub-Plan provided that such terms and conditions are set out in
the Option grant documentation and shall have first been approved by the Inland Revenue.

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

     (d) Termination of Status. The Board shall determine the effect on an Option of the
disability, death, retirement (on or after the Specified Age), 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 or designated beneficiary
may exercise rights under the Option provided always that no Option may be exercised later than 12
months after the date of a Participant’s death.

     (e) Withholding. Each Participant shall pay to the Company, or make provision
satisfactory to the Company for payment of, any taxes and national insurance contributions

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required by law to be withheld in connection with the exercise of an Option. The Company may,
to the extent permitted by law, deduct any such tax and national insurance obligations from any
payment of any kind otherwise due to a Participant. In the Board’s discretion, such tax and
national insurance obligations may be paid in whole or in part from the proceeds of the sale of
shares of Common Stock (whether via a broker/dealer arrangement or otherwise).

     (f) Employer national insurance contributions. An Option may be granted subject, if
the Board so determines, to any or all (at the Board’s discretion) of the following conditions of
exercise:

          (1) the Participant completing and executing an irrevocable agreement (in such form as
determined by the Board) under which the Participant allows the Relevant Company to recover from
him the whole or any part of its liability for Employer’s Option NICs; and/or

          (2) the Participant entering into a joint election with the Relevant Company (in such form as
determined by the Board) for the whole or part of any liability for Employer’s Option NICs to be
transferred to the Participant provided that the form of such election and the arrangement made in
that election for securing that the liability transferred by the election will be met and have been
approved, prior to the time the election is entered into, by the Inland Revenue.

     (g) Conditions on Delivery of Stock. The Company will not be obligated to deliver any
shares of Common Stock pursuant to the Sub-Plan until:

               (i) all conditions of the Option have been met or removed to the satisfaction of the Company
and in accordance with the rules of the Sub-Plan,

               (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, acting fairly and reasonably, may at any time provide
that any Option shall become immediately exercisable in full or in part.

     (i) Additional definitions.

     “Acquisition Event” means an event by which any company (the “Acquiring Company”):

     (1) obtains Control of the Company as a result of making:

               (i) a general offer to acquire the whole of the issued ordinary share capital of the Company
which is made on condition such that if it is satisfied, the Acquiring Company will have Control of
the Company; or

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               (ii) a general offer to acquire all the shares in the Company which are of the same class as
the shares which may be acquired by the exercise of Options,

          in either case ignoring any shares which are already owned by it or by a member of the same
group of companies; or

     (2) obtains Control of the Company in pursuance to a compromise or arrangement sanctioned by
the court under Section 425 Companies Act 1985 (or non-UK equivalent which the Inland Revenue
accepts as closely comparable); or

     (3) becomes bound or entitled to acquire shares under Sections 428-430F Companies Act 1985 (or
non-UK equivalent which the Inland Revenue accepts as closely comparable).

     “Appropriate Period” means the relevant period set out in paragraphs (a), (b) or (c) as
appropriate of paragraph 26(3) of Schedule 4.

     “Control” has the meaning given by Section 719 Income Tax (Earnings and Pensions) Act 2003.

     “Employer’s Option NICs” means secondary Class 1 national insurance contributions payable in
respect of a gain that is treated as remuneration derived from the Participant’s employment by
virtue of Section 4(4)(a) of the Social Security Contributions and Benefits Act 1992.

     “Group Company” means the Company and any company which is under the control of the Company.

     “Key Feature” means a provision which is necessary in order to meet the requirements of
Schedule 4.

     “Relevant Company” means the company by which the Participant is employed.

     “Schedule 4” means schedule 4 to the Income Tax (Earnings and Pensions) Act 2003.

     “Specified Age” age 55.

	8.  	Miscellaneous

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

     (b) No Right to Employment – Further Provisions. Notwithstanding any other provision
of the Main Plan or the Sub-Plan:

          (1) the Main Plan and Sub-Plan shall not form any part of any contract of employment between
the Company or any past or present Group Company and any

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employees of any of those companies, and they shall not confer on any such employees any legal
or equitable rights (other than those constituting the Options themselves) against the Company or
any past or present Group Company, directly or indirectly, or give rise to any cause of action in
law or in equity against the Company or past or present Group Company;

          (2) in no circumstances shall any Participant on ceasing to hold the office or employment by
virtue of which he is or may be eligible to participate in the Main Plan or the Sub-Plan be
entitled to any compensation for any loss of any right or benefit or prospective right or benefit
under the Main Plan or the Sub-Plan which he might otherwise have enjoyed (including, without
limitation, the lapse of Options or part thereof held by him by reason of his ceasing to hold an
office or ceasing to be employed by the Company or any past or present Group Company) whether such
compensation is claimed by way of damages for wrongful dismissal or other breach of contract or by
way of compensation for loss of office or otherwise.

     (c) No Rights As Stockholder. Subject to the provisions of the applicable Option, 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 Option 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 a Participant 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.

     (d) Effective Date and Term of Sub-Plan. The Sub-Plan shall become effective on the
date on which it is adopted by the Board, but no Option may be granted unless and until the
Sub-Plan has been approved by the UK Inland Revenue. No Options shall be granted under the
Sub-Plan after the completion of 10 years from the earlier of:

               (i) the date on which the Sub-Plan was adopted by the Board, or

               (ii) the date the Sub-Plan was approved by the Company’s stockholders,

but Options previously granted may extend beyond that date.

     (e) Amendment of Sub-Plan. The Board may amend, suspend or terminate the Sub-Plan or
any portion thereof or an Option granted hereunder at any time; provided that:

               (i) 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, and

               (ii) no amendment, suspension or termination in relation to a Key Feature shall take effect
until it has been approved by the UK Inland Revenue.

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No Option shall be made that is conditioned upon stockholder approval of any amendment to the
Sub-Plan.

     (f) Governing Law. The provisions of the Sub-Plan and all Options 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.

9exv10w5

 

Exhibit 10.5

Bookham, Inc.

Restricted Stock Agreement

Granted Under 2004 Stock Incentive Plan

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

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

     1. Issuance of Shares; Forfeiture of Options.

          (a) The Company shall issue to the Participant, subject to the terms and conditions set forth
in this Agreement and in the Company’s 2004 Stock Incentive Plan (the “Plan”), 147,409
shares (the “Shares”) of common stock, $0.01 par value, of the Company (“Common
Stock”). The Shares will be held in book entry by the Company’s transfer agent in the name of
the Participant for that number of Shares issued to the Participant. The Participant agrees that
the Shares shall be subject to the forfeiture provisions set forth in Section 2 of this Agreement
and the restrictions on transfer set forth in Section 4 of this Agreement.

          (b) In consideration for the issuance of the Shares, the Participant shall surrender to the
Company for cancellation 589,636 options to acquire Common Stock (such number being equal to
147,409 multiplied by four (4)), which options were previously granted by the Company to the
Participant. Upon surrender, the options will be cancelled and will be of no further force or
effect and the Participant shall have no further rights with respect to such options. The Company
shall have no obligation to issue the Shares unless and until the Participant surrenders the
options. The options surrendered by the Participant are set forth in Exhibit A.

     2. Vesting.

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

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

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

 

 

written notice to the Participant from the Company, to perform his or her material responsibilities
to the Company or (ii) willful misconduct by the Participant that affects the business reputation
of the Company. As used herein, Good Reason” means any significant diminution in the
Participant’s title, authority or responsibilities, or any reduction in the annual cash
compensation payable to the Participant, other than by mutual agreement.

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

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

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

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

     3. Automatic Sale Upon Vesting.

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

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

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

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     4. Restrictions on Transfer.

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

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

     5. Restrictive Legends.

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

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

     6. Provisions of the Plan.

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

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

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

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

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

     8. Miscellaneous.

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

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

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

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

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

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

 -4-

 

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

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

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

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

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

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

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

 -5-

 

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

	 	 	 	 	 
	 	 	BOOKHAM, INC.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Peter Bordui
	

	 	 	 	 
	

	 	 	 	Name: Peter Bordui
	

	 	 	 	Title: Chairman of the Board

	 	 	 	 	 
	 	 	/s/ Giorgio Anania
	 	 	 
	 	 	Giorgio Anania
	 
	 	 	 	 
	

	 	Address:	 	 
	

	 	 	 	 
	 
	 	 	 	 
	

	 	 	 	 

 -6-

 

EXHIBIT A

Giorgio Anania

Option Ownership Prior to 2-9-05

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Number	 	 	Grant Date	 	 	 	Plan	 	 	 	Shares	 	 	Exercise Price	 
	00000690**
	 	 	3/13/2000	 	 	 	1998	 	 	 	18,000	 	 	$	178.5300	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	00001693**
	 	 	8/3/2001	 	 	 	1998	 	 	 	100,000	 	 	$	30.5286	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	00002216**
	 	 	2/8/2002	 	 	 	1998	 	 	 	22,400	 	 	$	21.7807	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	00004394**
	 	 	11/14/2002	 	 	 	1998	 	 	 	120,736	 	 	$	13.9253	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	00004720**
	 	 	9/25/2003	 	 	 	1998	 	 	 	203,559	 	 	$	24.1194	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	00004934**
	 	 	6/2/2004	 	 	 	1998	 	 	 	150,673	 	 	$	10.4440	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	US000592
	 	 	3/24/1999	 	 	 	1998	 	 	 	18,000	 	 	$	19.3330	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	US000448
	 	 	4/2/1999	 	 	 	1998	 	 	 	60,000	 	 	$	19.3330	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	US000394
	 	 	9/7/1998	 	 	 	1998	 	 	 	28,000	 	 	$	17.6660	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BK001002
	 	 	22/09/2004	 	 	 	2004	 	 	 	60,000	 	 	$	6.4900	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BK001007
	 	 	22/09/2004	 	 	 	2004	 	 	 	60,000	 	 	$	6.4900	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	841,368	 	 	 	 	 

     **Converted from pounds to dollars as of 9-9-04

Options Cancelled at 2-9-05

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	00000690**
	 	 	3/13/2000	 	 	 	1998	 	 	 	18,000	 	 	$	178.5300	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	00001693**
	 	 	8/3/2001	 	 	 	1998	 	 	 	100,000	 	 	$	30.5286	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	00002216**
	 	 	2/8/2002	 	 	 	1998	 	 	 	22,400	 	 	$	21.7807	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	00004394**
	 	 	11/14/2002	 	 	 	1998	 	 	 	120,736	 	 	$	13.9253	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	00004720**
	 	 	9/25/2003	 	 	 	1998	 	 	 	203,559	 	 	$	24.1194	 

 -7-

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	00004934**
	 	 	6/2/2004	 	 	 	1998	 	 	 	18,941	 	 	$	10.4440	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	US000592
	 	 	3/24/1999	 	 	 	1998	 	 	 	18,000	 	 	$	19.3330	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	US000448
	 	 	4/2/1999	 	 	 	1998	 	 	 	60,000	 	 	$	19.3330	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	US000394
	 	 	9/7/1998	 	 	 	1998	 	 	 	28,000	 	 	$	17.6660	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	589,636	 	 	 	 	 

**Converted from pounds to dollars as of 9-9-04

Option Ownership Post 2-9-05

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	00004934**
	 	 	6/2/2004	 	 	 	1998	 	 	 	131,732	 	 	$	10.4440	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BK001002
	 	 	22/09/2004	 	 	 	2004	 	 	 	60,000	 	 	$	6.4900	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BK001007
	 	 	22/09/2004	 	 	 	2004	 	 	 	60,000	 	 	$	6.4900	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	251,732	 	 	 	 	 

** Converted from pounds to dollars as of 9-9-04

 -8-

 

EXHIBIT B

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

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

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

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

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

 -9-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}]]