Document:

2007 Executive Bonus Plan

 EXHIBIT 10.5 
 INFINERA CORPORATION 
 2007 MANAGEMENT INCENTIVE PLAN 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	 SECTION 1
	  	BACKGROUND, PURPOSE AND DURATION	  	1
			
	 1.1
	  	Effective Date	  	1
	 1.2
	  	Purpose of the Plan	  	1
			
	 SECTION 2
	  	DEFINITIONS	  	1
			
	 2.1
	  	“Affiliate”	  	1
	 2.2
	  	“Average Payout Percentage”	  	1
	 2.3
	  	“Base Salary”	  	1
	 2.4
	  	“Board”	  	1
	 2.5
	  	“Bonus”	  	1
	 2.6
	  	“Bonus Pool”	  	1
	 2.7
	  	“Committee”	  	1
	 2.8
	  	“Company”	  	1
	 2.9
	  	“Disability”	  	1
	 2.10
	  	“Employee”	  	2
	 2.11
	  	“Fiscal Quarter”	  	2
	 2.12
	  	“Fiscal Year”	  	2
	 2.13
	  	“Gross Margin Percentage”	  	2
	 2.14
	  	“Invoiced Shipments”	  	2
	 2.15
	  	“Officer”	  	2
	 2.16
	  	“Operating Cash Flow”	  	2
	 2.17
	  	“Operating Income”	  	2
	 2.18
	  	“Participant”	  	2
	 2.19
	  	“Payout Percentage”	  	2
	 2.20
	  	“Performance Period”	  	2
	 2.21
	  	“Performance Targets”	  	2
	 2.22
	  	“Plan”	  	2
	 2.23
	  	“Target Percentage”	  	2
	 2.24
	  	“Termination of Service”	  	2
			
	 SECTION 3
	  	SELECTION OF PARTICIPANTS AND DETERMINATION OF AWARDS	  	3
			
	 3.1
	  	Selection of Participants	  	3
	 3.2
	  	Determination of Awards	  	3
	 3.3
	  	Target Percentages	  	3
	 3.4
	  	Performance Targets	  	3
	 3.5
	  	Payout Percentages	  	3
	 3.6
	  	Discretion to Modify Awards and Bonus Pool	  	4
	 3.7
	  	Discretion to Modify Performance Targets and Calculation of Bonus	  	4
			
	 SECTION 4
	  	PAYMENT OF BONUSES	  	4
			
	 4.1
	  	Eligibility for Payment	  	4

  

 -i- 

 TABLE OF CONTENTS 
 (Continued) 
  

					
	 	  	 	  	Page
	 4.2
	  	Right to Receive Payment	  	5
	 4.3
	  	Timing of Payment	  	5
	 4.4
	  	Form of Payment	  	5
	 4.5
	  	Payment in the Event of Death or Disability	  	5
			
	 SECTION 5
	  	ADMINISTRATION	  	5
			
	 5.1
	  	Committee is the Administrator	  	5
	 5.2
	  	Committee Authority	  	5
	 5.3
	  	Decisions Binding	  	6
	 5.4
	  	Delegation by the Committee	  	6
			
	 SECTION 6
	  	GENERAL PROVISIONS	  	6
			
	 6.1
	  	Tax Withholding	  	6
	 6.2
	  	No Effect on Employment or Service	  	6
	 6.3
	  	Participation	  	6
	 6.4
	  	Successors	  	6
	 6.5
	  	Beneficiary Designations	  	6
	 6.6
	  	Nontransferability of Awards	  	6
			
	 SECTION 7
	  	AMENDMENT, TERMINATION AND DURATION	  	7
			
	 7.1
	  	Amendment, Suspension or Termination	  	7
	 7.2
	  	Duration of the Plan	  	7
			
	 SECTION 8
	  	LEGAL CONSTRUCTION	  	7
	 8.1
	  	Gender and Number	  	7
	 8.2
	  	Severability	  	7
	 8.3
	  	Requirements of Law	  	7
	 8.4
	  	Governing Law	  	7
	 8.5
	  	Bonus Plan	  	7
	 8.6
	  	Captions	  	7

  

 -ii- 

 2007 MANAGEMENT INCENTIVE PLAN 
 SECTION 1 
 BACKGROUND, PURPOSE AND DURATION 
 1.1 Effective Date. The Plan was adopted effective as of January 1, 2007. 
 1.2 Purpose of the Plan. The Plan is intended to increase stockholder value and the success of the Company by motivating selected employees
(a) to perform to the best of their abilities and (b) to achieve the Company’s objectives. 
 SECTION 2 
 DEFINITIONS 
 The following words and
phrases shall have the following meanings unless a different meaning is plainly required by the context: 
 2.1 “Affiliate”
means any corporation or other entity (including, but not limited to, partnerships and joint ventures) controlled by the Company. 
 2.2
“Average Payout Percentage” means the average Payout Percentage, as determined under Section 3.5(b). 
 2.3
“Base Salary” means the base salary in effect at the end of the Performance Period, exclusive of overtime, premium pay, stock compensation, relocation payments or any other bonus or incentive award payments. 
 2.4 “Board” means the Board of Directors of the Company. 
 2.5 “Bonus” means the bonus payable to a Participant for the Performance Period, subject to the Committee’s authority under Section 3.6 to modify the award. 
 2.6 “Bonus Pool” means the pool of funds available for distribution to Participants in accordance with Section 3.2(b). Subject to
the terms of the Plan, the Committee shall establish the Bonus Pool for the Performance Period. 
 2.7 “Committee” means the
committee appointed by the Board (pursuant to Section 5.1) to administer the Plan. Until otherwise determined by the Board, the Compensation Committee of the Board shall comprise the Committee. 
 2.8 “Company” means Infinera Corporation, a Delaware corporation, or any successor thereto. 
 2.9 “Disability” means a permanent and total disability determined in accordance with uniform and nondiscriminatory standards adopted by
the Committee from time to time. 

 2.10 “Employee” means any employee of the Company or of an Affiliate, whether such
individual is so employed at the time the Plan is adopted or becomes so employed subsequent to the adoption of the Plan. 
 2.11
“Fiscal Quarter” means a fiscal quarter of the Company. 
 2.12 “Fiscal Year” means the fiscal year of the
Company. 
 2.13 “Gross Margin Percentage” means the Company’s gross margin percentage based on Invoiced Shipments.

 2.14 “Invoiced Shipments” means the Company’s invoiced shipments. 
 2.15 “Officer” means an executive officer of the Company as determined by the Committee. 
 2.16 “Operating Cash Flow” means the Company’s cash flow generated from operating activities. 
 2.17 “Operating Income” means the Company’s profit from operations, excluding non-cash charges relating to equity based
compensation. 
 2.18 “Participant” means an Employee who has been selected by the Committee for participation in the Plan.

 2.19 “Payout Percentage” means the percentage of actual Gross Margin Percentage, Invoiced Shipments, Operating Cash Flow,
and Operating Income versus the Performance Targets, as determined under Section 3.5(a). 
 2.20 “Performance Period”
means the 2007 Fiscal Year. 
 2.21 “Performance Targets” means Gross Margin Percentage, Invoiced Shipments, Operating Cash
Flow, and Operating Income, as set forth in Section 3.4. 
 2.22 “Plan” means this 2007 Management Incentive Plan, as
set forth in this instrument and as hereafter amended from time to time. 
 2.23 “Target Percentage” means the percentage of
a Participant’s Base Salary for the Performance Period, as determined by the Committee in accordance with Section 3.3. 
 2.24
“Termination of Service” means a cessation of the employee-employer relationship between an Employee and the Company or an Affiliate for any reason, including, but not by way of limitation, a termination by resignation, discharge,
death, Disability, retirement, or the disaffiliation of an Affiliate, but excluding any such termination where there is a simultaneous reemployment by the Company or an Affiliate. 
  

 -2- 

 SECTION 3 
 SELECTION OF PARTICIPANTS AND DETERMINATION OF AWARDS 
 3.1 Selection of Participants. The
Committee, in its sole discretion, shall select the Employees who shall be Participants. Unless and until the Committee provides otherwise, Employees who carry an approved job title at the level of Director or Vice President, but excluding sales
Employees, shall be eligible to be Participants. Certain individuals who have a Director title may not be eligible to be Participants based on their actual job position within the grading structure. The Committee’s determination as to who is
eligible to be a Participant under the Plan will be final and binding on all employees. 
 3.2 Determination of Awards. 
 (a) Participants who are Officers shall generally be eligible to receive a Bonus for the Performance Period equal to such Participant’s Base Salary,
multiplied by the product of such Participant’s Target Percentage multiplied by the Average Payout Percentage. 
 (b) Participants who
are not Officers shall generally be eligible to participate in a Bonus Pool which the Committee, in its sole discretion, shall establish. The amount of the Bonus Pool shall be determined by the Committee in its sole discretion after considering the
Payout Percentages and Average Payout Percentage for the Performance Period. Each Vice President, shall allocate the Bonus Pool among Participants in his or her team pursuant to guidelines established by the Committee. 
 3.3 Target Percentages. The Committee, in its sole discretion, shall establish a Target Percentage for each Participant who is an Officer.

 3.4 Performance Targets. The Performance Targets for the Performance Period shall be as follows: 
 (a) Invoiced Shipments: $            . 
 (b) Gross Margin Percentage:         %. 
 (c) Operating Cash Flow: $            . 
 (d) Operating Income: $            . 
 3.5 Payout Percentages. 
 (a) At the
end of the Performance Period, the Committee shall determine, in its sole discretion, the extent to which the Performance Targets have been satisfied. The Company’s actual Invoiced Shipments, Gross Margin Percentage, Operating Cash Flow and
Operating Income for the Performance Period shall be used to establish each metric’s Payout Percentage in accordance with the chart below. Notwithstanding anything in the Plan to the 

  

 -3- 

 
contrary, no Bonuses shall be distributed under the Plan if the Operating Income Performance Target is not achieved for the Performance Period. 

 

								
	 Metric
	  	 Target
	  	 Actual Performance
	  	Payout
Percentage	 
	 Invoiced Shipments
	  	$            	  	 $             - $            
 $             - $            
 > $            
	  	100
150
200	%
%
%
				
	 Gross Margin Percentage
	  	        %	  	         % -         %
         % -         %
         % -         %
 >
        %
	  	50
100
150
200	%
%
%
%
				
	 Operating Cash Flow
	  	$            	  	 $             - $            
 $             - $            
 > $            
	  	100
150
200	%
%
%
				
	 Operating Income
	  	$            	  	 $             - $            
 $             - $            
 > $            
	  	100
150
200	%
%
%

 (b) The Average Payout Percentage shall be calculated by adding the Payout Percentages for
Invoiced Shipments, Gross Margin Percentage, Operating Cash Flow and Operating Income, and then dividing the resulting number by four (4). 
 3.6 Discretion to Modify Awards and Bonus Pool. Notwithstanding any contrary provision of the Plan, the Committee may, in its sole discretion and at any time, (a) increase, reduce or eliminate a Participant’s Target
Percentage, (b) increase, reduce or eliminate a Participant’s actual Bonus for the Performance Period, and/or (c) increase, reduce or eliminate the amount allocated to the Bonus Pool. The Committee may determine the amount of any
reduction on the basis of such factors as it deems relevant, and shall not be required to establish any allocation or weighting with respect to the factors it considers. 
 3.7 Discretion to Modify Performance Targets and Calculation of Bonus. Notwithstanding any contrary provision of the Plan, the Committee may, in its sole discretion, during the Performance Period
(a) modify the Performance Targets and/or (b) modify the formula for calculating Bonuses. 
 SECTION 4 
 PAYMENT OF BONUSES 
 4.1 Eligibility
for Payment. 
 (a) Unless otherwise determined by the Committee, a Participant must be an Employee on the first day of the Performance
Period to receive a full Bonus under the Plan. 
  

 -4- 

 (b) If a Participant becomes an Employee after the first day of the Performance Period, he or she may
receive a pro-rated Bonus under the Plan; provided, however, that a Participant must be an Employee on or before the first day of a Fiscal Quarter for such Fiscal Quarter to count towards the Participant’s Bonus calculation. The
Participant’s pro-rated Bonus shall be calculated by multiplying the Participant’s full Bonus by a fraction, with a numerator equal to the number of full Fiscal Quarters after the Participant’s start date and ending on the last day of
the Performance Period, and a denominator equal to four (4). 
 (c) Notwithstanding anything in the Plan to the contrary, to receive a Bonus
under the Plan, a Participant (i) must not have had a Termination of Service during the Performance Period and (ii) must be an Employee on the last day of the Performance Period. 
 4.2 Right to Receive Payment. Each Bonus shall be paid solely from the general assets of the Company. Nothing in this Plan shall be construed
to create a trust or to establish or evidence any Participant’s claim of any right other than as an unsecured general creditor with respect to any payment to which he or she may be entitled. 
 4.3 Timing of Payment. Payment of each Bonus shall be made as soon as administratively practicable as determined by the Committee after the
end of the Performance Period during which the Bonus was earned. 
 4.4 Form of Payment. Each Bonus shall be paid in cash in a
single lump sum. 
 4.5 Payment in the Event of Death or Disability. If a Participant dies or becomes Disabled prior to the
payment of a Bonus earned by him or her prior to death or Disability for a prior Performance Period, the Bonus shall be paid to his or her estate or to the Participant, as the case may be, subject to the Committee’s discretion to reduce or
eliminate any Bonus otherwise payable. 
 SECTION 5 
 ADMINISTRATION 
 5.1 Committee is the Administrator. The Plan shall be administered by
the Committee, whose members shall be appointed by the Board. The Board may appoint different Committees to administer the Plan with respect to different groups of Employees and/or Participants. 
 5.2 Committee Authority. It shall be the duty of the Committee to administer the Plan in accordance with the Plan’s provisions. The
Committee shall have all powers and discretion necessary or appropriate to administer the Plan and to control its operation, including, but not limited to, the power to (a) determine which Employees shall be granted awards, (b) prescribe
the terms and conditions of awards, (c) interpret the Plan and the awards, (d) adopt such procedures and subplans as are necessary or appropriate to permit participation in the Plan by Employees who are foreign nationals or employed
outside of the United States, (e) adopt rules for the administration, interpretation and application of the Plan as are consistent therewith, and (f) interpret, amend or revoke any such rules. 
  

 -5- 

 5.3 Decisions Binding. All determinations and decisions made by the Committee, the Board, and
any delegate of the Committee pursuant to the provisions of the Plan shall be final, conclusive, and binding on all persons, and shall be given the maximum deference permitted by law. 
 5.4 Delegation by the Committee. The Committee, in its sole discretion and on such terms and conditions as it may provide, may delegate all
or part of its authority and powers under the Plan to one or more directors and/or officers of the Company. 
 SECTION 6 
 GENERAL PROVISIONS 
 6.1 Tax
Withholding. The Company shall withhold all applicable taxes from any Bonus, including any federal, state and local taxes (including, but not limited to, the Participant’s FICA and SDI obligations). 
 6.2 No Effect on Employment or Service. Nothing in the Plan shall interfere with or limit in any way the right of the Company to terminate
any Participant’s employment or service at any time, with or without cause. For purposes of the Plan, transfer of employment of a Participant between the Company and any one of its Affiliates (or between Affiliates) shall not be deemed a
Termination of Service. Employment with the Company and its Affiliates is on an at-will basis only. The Company expressly reserves the right, which may be exercised at any time and without regard to when during a Performance Period such exercise
occurs, to terminate any individual’s employment with or without cause, and to treat him or her without regard to the effect that such treatment might have upon him or her as a Participant. 
 6.3 Participation. No Employee shall have the right to be selected to receive an award under this Plan, or, having been so selected, to be
selected to receive a future award. 
 6.4 Successors. All obligations of the Company under the Plan, with respect to awards
granted hereunder, shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business or assets
of the Company. 
 6.5 Beneficiary Designations. If permitted by the Committee, a Participant under the Plan may name a
beneficiary or beneficiaries to whom any vested but unpaid award shall be paid in the event of the Participant’s death. Each such designation shall revoke all prior designations by the Participant and shall be effective only if given in a form
and manner acceptable to the Committee. In the absence of any such designation, any vested benefits remaining unpaid at the Participant’s death shall be paid to the Participant’s estate. 
 6.6 Nontransferability of Awards. No award granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or
hypothecated, other than by will, by the laws of descent and distribution, or to the limited extent provided in Section 6.5. All rights with respect to an award granted to a Participant shall be available during his or her lifetime only to the
Participant. 
  

 -6- 

 SECTION 7 
 AMENDMENT, TERMINATION AND DURATION 
 7.1 Amendment, Suspension or Termination. The
Committee, in its sole discretion, may amend or terminate the Plan, or any part thereof, at any time and for any reason. The amendment, suspension or termination of the Plan shall not, without the consent of the Participant, alter or impair any
rights or obligations under any Bonus theretofore earned by such Participant. No award may be granted during any period of suspension or after termination of the Plan. 
 7.2 Duration of the Plan. The Plan shall commence on the date specified herein, and subject to Section 7.1 (regarding the Committee’s right to amend or terminate the Plan), shall remain in effect
thereafter. 
 SECTION 8 
 LEGAL CONSTRUCTION 
 8.1 Gender and Number. Except where otherwise indicated by the context, any masculine term
used herein also shall include the feminine; the plural shall include the singular and the singular shall include the plural. 
 8.2
Severability. In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the
illegal or invalid provision had not been included. 
 8.3 Requirements of Law. The granting of awards under the Plan shall be
subject to all applicable laws, rules and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. 
 8.4 Governing Law. The Plan and all awards shall be construed in accordance with and governed by the laws of the State of California, but without regard to its conflict of law provisions. 
 8.5 Bonus Plan. The Plan is intended to be a “bonus program” as defined under U.S. Department of Labor regulation section
2510.3-2(c) and shall be construed and administered by the Company in accordance with such intention. 
 8.6 Captions. Captions
are provided herein for convenience only, and shall not serve as a basis for interpretation or construction of the Plan. 
  

 -7-Form of Change of Control Severance Agreement

 EXHIBIT 10.6 
 INFINERA CORPORATION 
 CHANGE OF CONTROL SEVERANCE AGREEMENT 
 This Change of Control Severance Agreement (the “Agreement”) is made and entered into by and between [NAME] (“Executive”) and
Infinera Corporation (the “Company”), effective as of [DATE] (the “Effective Date”). 
 RECITALS 

1. It is expected that the Company from time to time will consider the possibility of an acquisition by another company or other change of control.
The Board of Directors of the Company (the “Board”) recognizes that such consideration can be a distraction to Executive and can cause Executive to consider alternative employment opportunities. The Board has determined that it is in the
best interests of the Company and its stockholders to assure that the Company will have the continued dedication and objectivity of Executive, notwithstanding the possibility, threat or occurrence of a Change of Control (as defined herein) of the
Company. 
 2. The Board believes that it is in the best interests of the Company and its stockholders to provide Executive with an incentive
to continue his or her employment and to motivate Executive to maximize the value of the Company upon a Change of Control for the benefit of its stockholders. 
 3. The Board believes that it is imperative to provide Executive with certain benefits upon Executive’s termination of employment following a Change of Control. These benefits will provide Executive with enhanced
financial security and incentive and encouragement to remain with the Company notwithstanding the possibility of a Change of Control. 
 4.
Certain capitalized terms used in the Agreement are defined in Section 6 below. 
 AGREEMENT 
 NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties hereto agree as follows: 
 1. Term of Agreement. This Agreement will terminate upon the date that all of the obligations of the parties hereto with respect to this Agreement
have been satisfied. 
 2. At-Will Employment. The Company and Executive acknowledge that Executive’s employment is and will
continue to be at-will, as defined under applicable law, except as may otherwise be specifically provided under the terms of any written formal employment agreement between the Company and Executive (an “Employment Agreement”). If
Executive’s employment terminates for any reason, including (without limitation) any termination prior to a Change of Control, Executive will not be entitled to any payments, benefits, damages, awards or compensation other than as provided by
this Agreement or under his or her Employment Agreement. 
  

 3. Severance Benefits. 
  

	 	(a)	Involuntary Termination Following a Change of Control. If within twelve (12) months following a Change of Control the Company (or any parent or subsidiary of the
Company) terminates Executive’s employment without Cause, and Executive signs and does not revoke a standard release of claims with the Company in a form acceptable to the Company, then Executive will receive the following severance from the
Company: 

  

	 	(i)	Severance Payment. Executive will receive severance pay (less applicable withholding taxes) for a period of twelve (12) months from the date of such termination equal to
Executive’s base salary (as in effect immediately prior to (A) the Change of Control, or (B) Executive’s termination, whichever is greater). 

  

	 	(ii)	Equity Awards. 

  

	 	(1)	Initial Equity Awards. Fifty percent (50%) of the original total of each equity award granted to Executive in connection with Executive’s initial employment with
the Company (the “Initial Awards”) will immediately vest and, if applicable, become exercisable (that is, in addition to the portion of any such Initial Awards that had vested as of such termination, but in no event more than the original
amount of such Initial Awards), but only if Executive was initially employed with the Company as a Vice President or other executive officer. The Initial Awards will, to the extent applicable, remain exercisable following Executive’s
termination for the period prescribed in the related award agreement. 

  

	 	(2)	Subsequent Equity Awards. One hundred percent (100%) of the then unvested portion of any equity awards granted to Executive following the Initial Awards and while
Executive was serving as an executive officer of the Company (the “Subsequent Awards”) will immediately vest and, if applicable, become exercisable. The Subsequent Awards will, to the extent applicable, remain exercisable following
Executive’s termination for the period prescribed in the related award agreements. 

  

	 	(iii)	Continued Employee Benefits. Executive will receive Company-paid coverage for a period of twelve (12) months for Executive and Executive’s eligible dependents under
the Company’s Benefit Plans. 

  

	 	(b)	Timing of Severance Payments. Subject to Section 3(f), the Company will pay the severance payments to which Executive is entitled as salary continuation on the same
basis and timing as in effect immediately prior to the Change of Control. If Executive should die before all amounts have been paid, such unpaid amounts will be paid in a lump-sum payment (less any withholding taxes) to Executive’s designated
beneficiary, if living, or otherwise to the personal representative of Executive’s estate. 

  

	 	(c)	 Voluntary Resignation; Termination For Cause. If Executives employment with the Company terminates (i) voluntarily by Executive or (ii) for Cause by the
Company (or any parent or subsidiary of the Company), then Executive will not be entitled to receive severance or other benefits except for those (if any) as may then be established under the Companys then existing 

  

 -2- 

	 	severance and benefits plans and practices or pursuant to other written agreements with the Company, including, without limitation, any Employment Agreement.

  

	 	(d)	Disability; Death. If the Company terminates Executive’s employment as a result of Executive’s Disability, or Executive’s employment terminates due to his or
her death, then Executive will not be entitled to receive severance or other benefits except for those (if any) as may then be established under the Company’s then existing written severance and benefits plans and practices or pursuant to other
written agreements with the Company, including, without limitation, any Employment Agreement. 

  

	 	(e)	Exclusive Remedy. In the event of a termination of Executive’s employment with the Company (or any parent or subsidiary of the Company), the provisions of this
Section 3 are intended to be and are exclusive and in lieu of any other rights or remedies to which Executive or the Company may otherwise be entitled, whether at law, tort or contract, in equity, or under this Agreement. Executive will be
entitled to no benefits, compensation or other payments or rights upon termination of employment other than those benefits expressly set forth in this Section 3. 

  

	 	(f)	Section 409A. Notwithstanding anything to the contrary in this Agreement, any cash severance payments otherwise due to Executive pursuant to Section 3 or otherwise
on or within the six (6)-month period following Executive’s termination will accrue during such six (6)-month period and will become payable in a lump sum payment on the date six (6) months and one (1) day following the date of
Executive’s termination, provided, that such cash severance payments will be paid earlier, at the times and on the terms set forth in the applicable provisions of Section 3, if the Company reasonably determines that the imposition of
additional tax under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), will not apply to an earlier payment of such cash severance payments. In addition, this Agreement will be deemed amended to the extent
necessary to avoid imposition of any additional tax or income recognition prior to actual payment to Executive under Code Section 409A and any temporary, proposed or final Treasury Regulations and guidance promulgated thereunder and the parties
agree to cooperate with each other and to take reasonably necessary steps in this regard. 

 4. Limitation on Payments.
In the event that the severance and other benefits provided for in this Agreement or otherwise payable to Executive (i) constitute “parachute payments” within the meaning of Section 280G of the Code and (ii) but for this
Section 4, would be subject to the excise tax imposed by Section 4999 of the Code, then Executive’s severance benefits under Section 4(a)(i) will be either: 
  

	 	(a)	delivered in full, or 

  

	 	(b)	delivered as to such lesser extent which would result in no portion of such severance benefits being subject to excise tax under Section 4999 of the Code,

 whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the excise tax imposed by
Section 4999, results in the receipt by Executive on an after-tax basis, of the greatest amount of severance benefits, notwithstanding that all or some portion of such severance benefits may be taxable under Section 4999 of the Code.
Unless the 
 Company 

  

 -3- 

 
and Executive otherwise agree in writing, any determination required under this Section 4 will be made in writing by the Company’s independent
public accountants immediately prior to Change of Control (the “Accountants”), whose determination will be conclusive and binding upon Executive and the Company for all purposes. For purposes of making the calculations required by this
Section 4, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code. The Company and
Executive will furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section 4. The Company will bear all costs the Accountants may reasonably incur in
connection with any calculations contemplated by this Section 4. 
 5. Definition of Terms. The following terms referred to in
this Agreement will have the following meanings: 
  

	 	(a)	Benefit Plans. For purposes of this Agreement, “Benefit Plans” means plans, policies or arrangements that the Company sponsors (or participates in) and that
immediately prior to Executive’s termination of employment provide Executive and/or Executive’s eligible dependents with medical, dental, and/or vision benefits. Benefit Plans do not include any other type of benefit (including, but not by
way of limitation, disability, life insurance or retirement benefits). A requirement that the Company provide Executive and Executive’s eligible dependents with coverage under the Benefit Plans will not be satisfied unless the coverage is no
less favorable than that provided to senior executives of the Company at any applicable time during the period Executive is entitled to receive severance pursuant to Section 3. The Company may, at its option, satisfy any requirement that the
Company provide coverage under any Benefit Plan by (i) reimbursing Executive’s premiums under Title X of the Consolidated Budget Reconciliation Act of 1985, as amended (“COBRA”) after Executive has properly elected
continuation coverage under COBRA (in which case Executive will be solely responsible for electing such coverage for his eligible dependents), or (ii) providing coverage under a separate plan or plans providing coverage that is no less
favorable or by paying Executive a lump-sum payment which is, on an after-tax basis, sufficient to provide Executive and Executive’s eligible dependents with equivalent coverage under a third party plan that is reasonably available to Executive
and Executive’s eligible dependents. 

  

	 	(b)	Cause. “Cause” is defined as: (i) Executive’s willful failure to substantially to perform his or her duties and responsibilities to the Company or
deliberate violation of a Company policy; (ii) Executive’s commission of any act of fraud, embezzlement, dishonesty or any other willful misconduct that has caused or is reasonably expected to result in material injury to the Company;
(iii) unauthorized use or disclosure by Executive of any proprietary information or trade secrets of the Company or any other party to whom Executive owes an obligation of nondisclosure as a result of his or her relationship with the Company;
or (iv) Executive’s willful breach of any of his or her obligations under any written agreement or covenant with the Company. The determination as to whether Executive is being terminated for Cause will be made in good faith by the Company
and will be final and binding on Executive. 

  

	 	(c)	Change of Control. “Change of Control” of the Company is defined as: 

  

	 	(i)	 any “person” (as such term is used in Sections 13(d) and 14(d) of the 

  

 -4- 

	 	 
Securities Exchange Act of 1934, as amended) becomes the “beneficial owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of
securities of the Company representing fifty percent (50%) or more of the total voting power represented by the Company’s then outstanding voting securities; 

  

	 	(ii)	the consummation of the sale or disposition by the Company of all or substantially all of the Company’s assets; 

  

	 	(iii)	the consummation of a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the
Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) at least fifty percent (50%) of the total voting power
represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation; or 

  

	 	(iv)	a change in the composition of the Board occurring within a two (2) year period, as a result of which less than a majority of the directors are Incumbent Directors.
“Incumbent Directors” means directors who either (A) are directors of the Company as of the date hereof, or (B) are elected, or nominated for election, to the Board with the affirmative votes of at least a majority of the
directors of the Company at the time of such election or nomination (but will not include an individual whose election or nomination is in connection with an actual or threatened proxy contest relating to the election of directors to the Company).

  

	 	(d)	Disability. “Disability” will mean that Executive has been unable to perform his Company duties as the result of his incapacity due to physical or mental illness,
and such inability, at least twenty-six (26) weeks after its commencement, is determined to be total and permanent by a physician selected by the Company or its insurers and acceptable to Executive or Executive’s legal representative (such
Agreement as to acceptability not to be unreasonably withheld). Termination resulting from Disability may only be effected after at least thirty (30) days’ written notice by the Company of its intention to terminate Executive’s
employment. In the event that Executive resumes the performance of substantially all of his duties hereunder before the termination of his employment becomes effective, the notice of intent to terminate will automatically be deemed to have been
revoked. 

 6. Successors. 
  

	 	(a)	The Company’s Successors. Any successor to the Company (whether direct or indirect and whether by purchase, merger, consolidation, liquidation or otherwise) to all or
substantially all of the Company’s business and/or assets will assume the obligations under this Agreement and will agree expressly to perform the obligations under this Agreement in the same manner and to the same extent as the Company would
be required to perform such obligations in the absence of a succession. For all purposes under this Agreement, the term “Company” will include any successor to the Company’s business and/or assets which executes and delivers the
assumption agreement described in this Section 6(a) or which becomes bound by the terms of this Agreement by operation of law. 

  

 -5- 

	 	(b)	Executive’s Successors. The terms of this Agreement and all rights of Executive hereunder will inure to the benefit of, and be enforceable by, Executive’s personal
or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. 

 7.
Notice. 
  

	 	(a)	General. Notices and all other communications contemplated by this Agreement will be in writing and will be deemed to have been duly given when personally delivered or when
mailed by U.S. registered or certified mail, return receipt requested and postage prepaid. In the case of Executive, mailed notices will be addressed to him or her at the home address which he or she most recently communicated to the Company in
writing. In the case of the Company, mailed notices will be addressed to its corporate headquarters, and all notices will be directed to the attention of its President. 

  

	 	(b)	Notice of Termination. Any termination by the Company for Cause or as a result of a voluntary resignation will be communicated by a notice of termination to the other party
hereto given in accordance with Section 7(a) of this Agreement. Such notice will indicate the specific termination provision in this Agreement relied upon, will set forth in reasonable detail the facts and circumstances claimed to provide a
basis for termination under the provision so indicated, and will specify the termination date (which will be not more than thirty (30) days after the giving of such notice). 

 8. Arbitration. 
  

	 	(a)	Any dispute or controversy arising out of, relating to, or in connection with this Agreement, or the interpretation, validity, construction, performance, breach, or termination
thereof, will be settled by binding arbitration to be conducted by the Judicial Arbitration and Mediation Services (“JAMS”) in Santa Clara, California, in accordance with the Employment Arbitration Rules and Procedures of JAMS (the
“Rules”). The arbitrator may grant injunctions or other relief in such dispute or controversy. The decision of the arbitrator will be final, conclusive and binding on the parties to the arbitration. Judgment may be entered on the
arbitrator’s decision in any court having jurisdiction. 

  

	 	(b)	The arbitrator(s) will apply California law to the merits of any dispute or claim, without reference to conflicts of law rules. The arbitration proceedings will be governed by
federal arbitration law and by the Rules, without reference to state arbitration law. Executive hereby consents to the personal jurisdiction of the state and federal courts located in California for any action or proceeding arising from or relating
to this Agreement or relating to any arbitration in which the parties are participants. 

  

	 	(c)	Executive understands that nothing in this Section 8 modifies Executive’s at-will employment status. Either Executive or the Company can terminate the employment
relationship at any time, with or without Cause. 

  

	 	(d)	 EXECUTIVE HAS READ AND UNDERSTANDS THIS SECTION 8, WHICH DISCUSSES ARBITRATION. EXECUTIVE UNDERSTANDS THAT SUBMITTING 

  

 -6- 

	 	 
ANY CLAIMS ARISING OUT OF, RELATING TO, OR IN CONNECTION WITH THIS AGREEMENT, OR THE INTERPRETATION, VALIDITY, CONSTRUCTION, PERFORMANCE, BREACH OR
TERMINATION THEREOF TO BINDING ARBITRATION, CONSTITUTES A WAIVER OF EXECUTIVE’S RIGHT TO A JURY TRIAL AND RELATES TO THE RESOLUTION OF ALL DISPUTES RELATING TO ALL ASPECTS OF THE EMPLOYER/EXECUTIVE RELATIONSHIP, INCLUDING BUT NOT LIMITED TO,
THE FOLLOWING CLAIMS: 

  

	 	(i)	ANY AND ALL CLAIMS FOR WRONGFUL DISCHARGE OF EMPLOYMENT; BREACH OF CONTRACT, BOTH EXPRESS AND IMPLIED; BREACH OF THE COVENANT OF GOOD FAITH AND FAIR DEALING, BOTH EXPRESS AND
IMPLIED; NEGLIGENT OR INTENTIONAL INFLICTION OF EMOTIONAL DISTRESS; NEGLIGENT OR INTENTIONAL MISREPRESENTATION; NEGLIGENT OR INTENTIONAL INTERFERENCE WITH CONTRACT OR PROSPECTIVE ECONOMIC ADVANTAGE; AND DEFAMATION. 

  

	 	(ii)	ANY AND ALL CLAIMS FOR VIOLATION OF ANY FEDERAL STATE OR MUNICIPAL STATUTE, INCLUDING, BUT NOT LIMITED TO, TITLE VII OF THE CIVIL RIGHTS ACT OF 1964, THE CIVIL RIGHTS ACT OF 1991,
THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, THE AMERICANS WITH DISABILITIES ACT OF 1990, THE FAIR LABOR STANDARDS ACT, THE CALIFORNIA FAIR EMPLOYMENT AND HOUSING ACT, AND LABOR CODE SECTION 201, et seq; 

  

	 	(e)	ANY AND ALL CLAIMS ARISING OUT OF ANY OTHER LAWS AND REGULATIONS RELATING TO EMPLOYMENT OR EMPLOYMENT DISCRIMINATION. 

 9. Miscellaneous Provisions. 
  

	 	(a)	No Duty to Mitigate. Executive will not be required to mitigate the amount of any payment contemplated by this Agreement, nor will any such payment be reduced by any earnings
that Executive may receive from any other source. 

  

	 	(b)	Waiver. No provision of this Agreement will be modified, waived or discharged unless the modification, waiver or discharge is agreed to in writing and signed by Executive and
by an authorized officer of the Company (other than Executive). No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by the other party will be considered a waiver of any other condition or
provision or of the same condition or provision at another time. 

  

	 	(c)	Headings. All captions and section headings used in this Agreement are for convenient reference only and do not form a part of this Agreement. 

  

	 	(d)	Entire Agreement. This Agreement, together with any Employment Agreement, constitutes the entire agreement of the parties hereto and supersedes in their entirety all prior
representations, understandings, undertakings or agreements (whether oral or written and whether expressed or implied) of the parties with respect to the subject matter hereof. 

  

 -7- 

	 	(e)	Choice of Law. The validity, interpretation, construction and performance of this Agreement will be governed by the laws of the State of California (with the exception of its
conflict of laws provisions). 

  

	 	(f)	Severability. The invalidity or unenforceability of any provision or provisions of this Agreement will not affect the validity or enforceability of any other provision
hereof, which will remain in full force and effect. 

  

	 	(g)	Withholding. All payments made pursuant to this Agreement will be subject to withholding of applicable income and employment taxes. 

  

	 	(h)	Counterparts. This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.

 IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by its duly authorized
officer, as of the day and year set forth below. 
  
  

					
	 COMPANY
	 		 	INFINERA CORPORATION
			
		 	By:	 	  
		 	Title:	 	  
		 		 	
			
	 EXECUTIVE
	 	By:	 	  
		 	Title:	 	  

  

 -8-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00121-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00121-of-00352.parquet"}]]