Document:

adtn-ex41_893.htm

Exhibit 4.1

 

DESCRIPTION OF THE REGISTRANT’S SECURITIES

REGISTERED PURSUANT TO SECTION 12 OF THE

SECURITIES EXCHANGE ACT OF 1934

 

The following description of our securities is intended as a summary only.  This description is based on our certificate of incorporation, as amended (the “Certificate of Incorporation”), our bylaws, as amended (the “Bylaws”), and applicable provisions of the Delaware General Corporation Law (the “DGCL”).  This summary is not complete and is qualified in its entirety by reference to the Certificate of Incorporation and the Bylaws, each of which is filed as an exhibit to this Annual Report on Form 10-K.  We encourage you to read the Certificate of Incorporation, the Bylaws and the applicable provisions of the DGCL for additional information.

As used herein, the terms “we,” “our” and “us” refer to ADTRAN, Inc.

General

Our authorized capital stock consists of 200,000,000 shares of common stock, par value $0.01 per share.

Common Stock

Holders of our common stock are entitled to one vote for each share held on all matters properly submitted to a vote of stockholders, including the election of directors, and do not have cumulative voting rights.  The election of directors by our stockholders shall be determined by a majority of the votes cast by the stockholders entitled to vote on the election.  All of our common stock outstanding is fully paid and nonassessable.  No common stock is subject to call.  Holders of our common stock are entitled to receive proportionately any dividends as may be declared by our board of directors.  There are no special rights or restrictions of any nature attaching to any of our common stock.

In the event of our liquidation or dissolution, the holders of our common stock are entitled to receive proportionately our net assets available for distribution to stockholders after the payment of all debts and other liabilities.  Holders of our common stock have no preemptive, subscription, redemption or conversion rights. 

Indemnification of Officers and Directors

The Certificate of Incorporation contains provisions for the indemnification of our directors, officers, employees and certain other agents to the fullest extent permitted by the DGCL.  These provisions may have the practical effect in certain cases of eliminating the ability of stockholders to collect monetary damages from indemnified individuals.

Provisions of the Certificate of Incorporation, the Bylaws and the DGCL That May Have Anti-Takeover Effects

  The Certificate of Incorporation, the Bylaws and the DGCL contain certain provisions that are intended to enhance the likelihood of continuity and stability in the composition of our board of directors.  These provisions are intended to avoid costly takeover battles, reduce our vulnerability to a hostile change of control and enhance the ability of our board of directors to maximize stockholder value in connection with any unsolicited offer to acquire us.  However, these provisions may have an anti-takeover effect and may delay, deter or prevent a merger or acquisition of us by means of a tender offer, a proxy contest or other takeover attempt that a stockholder might consider in its best interest, including those attempts that might result in a premium over the prevailing market price for the shares of common stock held by stockholders.

Authorized but Unissued Common Stock.  The authorized but unissued shares of our common stock are available for future issuance without stockholder approval, subject to any limitations imposed by the rules of any stock exchange on which our securities may be listed.  These additional shares may be used for a variety of corporate finance transactions, acquisitions and employee benefit plans.  The existence of authorized but unissued and unreserved shares of our common stock could make more difficult or discourage an attempt to obtain control of us by means of a proxy contest, tender offer, merger or otherwise.

Special Meeting of Stockholders.  The Certificate of Incorporation and the Bylaws provide that, except as otherwise required by law, special meetings of our stockholders can only be called by our chairman of the board, our chief executive officer, our president or our board of directors.

Delaware Business Combination Statute.  We are subject to Section 203 of the DGCL.  Subject to certain exceptions, Section 203 prevents a publicly held Delaware corporation from engaging in a “business combination” with any “interested stockholder” for three years following the date that the person became an interested stockholder, unless the interested stockholder attained such status with the approval of our board of directors or unless the business combination is approved in a prescribed manner.  A “business combination” includes, among other things, a merger or consolidation involving us and the “interested stockholder” and the sale of more than 10% of our assets.  In general, an “interested stockholder” is any entity or person beneficially owning 15% or more of our outstanding voting stock and any entity or person affiliated with or controlling or controlled by such entity or person.

Transfer Agent and Registrar

                American Stock Transfer & Trust Company, LLC is the transfer agent and registrar for our common stock.

Exchange Listing

                Our common stock is traded on the Nasdaq Global Select Market under the symbol “ADTN.”adtn-ex103b_444.htm

 

Exhibit 10.3(b)

 

 

 

 

[Insert Date]

Dear [Insert Name of Participant]:

I am pleased to inform you that you have been selected to participate in the ADTRAN, Inc. Variable Incentive Compensation Plan for [Insert Year]. Your 100% target bonus amount is [Insert Dollar Amount]. This one-time bonus payment will be calculated as described in the ADTRAN, Inc. Variable Incentive Compensation Program (Exhibit A) attached on the following page of this document, with [Insert Percentage] based on corporate results and [Insert Percentage] based on your personal goals. The personal goal elements described in the plan will be defined on Exhibit B.

Enclosed with this letter is an Employee Clawback Agreement that must be signed and returned to Joia Thompson by [Insert Date]. 

Any bonus amount that is achieved will be paid in [Insert Quarter] of [Insert Year].  You must be employed by ADTRAN at the time of payment. Please contact Joia Thompson if you have questions regarding this information, and thank you again for your continued contributions to ADTRAN’s ongoing success.

Sincerely,

/s/Thomas R. Stanton

Thomas R. Stanton

Chairman and Chief Executive Officer

ADTRAN, INC.adtn-ex103k_895.htm

 

Exhibit 10.3(k)

 

[Insert date]

  

[Insert name]

[Insert address]

 

 Dear [Insert Name]:

 I am pleased to inform you that you have been granted an award of [Insert number of stock options] stock options at an exercise price of $[Insert price] pursuant to the ADTRAN, Inc. 2010 Directors Stock Plan (the “Plan”).  The award is subject to the terms of the Plan and a related award agreement, both of which can be found on the Plan’s online portal, Morgan Stanley StockPlan Connect (https://www.stockplanconnect.com/).

In order to confirm your award, please visit the portal and follow the relevant instructions to acknowledge and accept it.  If you have any questions, please contact Gayle Ellis at (256) 963-8220 or gayle.ellis@adtran.com.

  

ADTRAN, INC.                                              

/s/ Thomas R. Stanton

Thomas R. Stanton                                         

Chairman of the Board and Chief Executive Officeradtn-ex103l_445.htm

 

Exhibit 10.3(l)

 

 

[Insert date]

 

Dear [Name of Participant]:

I am pleased to inform you that you have been granted an award of [Number of Shares Awarded] shares of restricted stock pursuant to the ADTRAN, Inc. 2010 Directors Stock Plan (the “Plan”).  The award is subject to the terms of the Plan and a related award agreement, both of which can be found on the Plan’s online portal, Morgan Stanley StockPlan Connect (https://www.stockplanconnect.com/). In order to confirm your award, please visit the portal and follow the relevant instructions to acknowledge and accept it.  

Additionally, the award of restricted stock you received effective [Insert Date] vested on [Insert Date]. We are preparing to transfer the final award stock shares to your designated account. Please complete Attachment A to document your share transfer instructions for our files and return to Meaghan Morris at (256) 963-6315.

Your original grant was [Number of Shares] shares. As a result of quarterly dividend credits earned during [Year], the final award will be [Number of Shares] shares, plus a cash payment for the equivalent of [Number of Shares] fractional shares [Dollar amount to Receive] associated with the dividend credits. Fractional shares are paid in cash in accordance with the plan rules. The amount of cash payment is based on the closing price of ADTRAN’s stock on [Insert Date] of [Price per Share] per share. 

Your cost basis of the shares awarded to you is [Insert Price per Share] per share. This award will be reported to you as income on the [Insert Year] Form 1099, which will be mailed to you by [Insert Date]. The cash amount for the fractional share will be added on your [Insert Year] Form 1099.

If you have any questions, please contact Meaghan Morris at (256) 963-6315 or meaghan.morris@adtran.com.

 

ADTRAN, INC.

/s/ Thomas R. Stanton

Thomas R. Stanton

Chairman of the Board and Chief Executive Officeradtn-ex103p_894.htm

 

Exhibit 10.3(p)

 Dear Employee,

 Congratulations!  On [Insert date] the ADTRAN Board of Directors met and approved a grant of stock options pursuant to the ADTRAN, Inc. 2015 Employee Stock Incentive Plan (the “Plan”). You have been awarded [Insert number of options] stock options at an exercise price of $[Insert price].  Your options are expected to be live on Morgan Stanley Smith Barney Benefit Access by [Insert date].  Please log-on to Morgan Stanley Smith Barney Benefit Access at: https://www.benefitaccess.com after [Insert date] to review and accept your grant.  If you have difficulties accessing your account, you may contact Morgan Stanley Smith Barney at 404-266-6390 and ask a stock plan representative to assist you.  (If you are outside the United States, please call +1-210-677-3712 between 8am and 8pm U.S. Eastern Time to speak with a stock plan representative.) 

Upon accessing your account, the ‘Alerts and Messages’ screen should pop-up. If you do not receive a pop-up, please click on the ‘Alerts and Messages’ tab. The alert will guide you through the process of viewing and accepting your new grant, as well as completing any other necessary information, through a series of online instructions.  

If you are receiving options for the first time, you should receive an email by [Insert date] from Morgan Stanley Smith Barney with full instructions on how to activate your online account.

 

PLEASE NOTE: You MUST accept your grant through Morgan Stanley Smith Barney Benefit Access Online for the grant to be valid and exercisable.  If you do not accept your grant, it may result in cancellation of the grant.

To view the Plan prospectus, which summarizes the terms and conditions of the Plan, select the ‘Document Library’ tab from your Accounts Summary page, click on ‘Stock Options’ and then ‘2015 Employee’s Plan Prospectus’.  If you are employed by ADTRAN outside of the U.S., additional information about the tax consequences of your grant is included with the prospectus at the same location. 

If you have any questions, or need further assistance, please contact Gayle Ellis at +1-256-963-8220 or via email at gayle.ellis@adtran.com.

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