Document:

adtn-ex101_314.htm

Exhibit 10.1

ADTRAN, INC.

2020 MARKET-BASED PERFORMANCE STOCK UNIT AGREEMENT

 

This Market-Based Performance Stock Unit Agreement (this “Agreement”) sets forth the specified terms of ADTRAN, Inc.’s grant of the target number of Market-Based Performance Stock Units (“PSUs”) set forth in the Morgan Stanley StockPlan Connect (the “Portal”) to the applicable grantee named in the Portal (the “Participant”) pursuant to the ADTRAN, Inc. 2020 Employee Stock Incentive Plan (the “Plan”) as of the date of grant set forth in the Portal (the “Date of Grant”).  All capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Plan.

 

Performance Period: The _____ year period beginning on the Date of Grant.

 

Earned PSUs and Delivery:  The number of PSUs that are earned pursuant to this Agreement will be based on the total shareholder return (“TSR”) of ADTRAN, Inc. (the “Company”) during the Performance Period relative to all companies in the NASDAQ Telecommunications Index. The Participant is eligible to earn between __% and __% of the target number of PSUs based on the Company’s relative TSR performance during the Performance Period in accordance with the sliding scale set forth below (approximately __% of the target award is earned for each ___ percentile increase up to __% of the target award and then approximately __% of the target award is earned for each __ percentile increase up to __% of the target award):

 

		
	
The Company’s TSR Performance relative to Specified Index (expressed as a percentile)
	
PSUs Earned (expressed as a percentage of target)

	
Less than __th Percentile
	
__%

	
__th Percentile
	
__%

	
__th Percentile
	
__%

	
__th Percentile
	
__%

	
__th Percentile
	
__%

	
__th Percentile
	
__%

	
__th Percentile
	
__%

	
__th Percentile
	
__%

	
__th Percentile
	
__%

	
__th Percentile
	
__%

	
__th Percentile
	
__%

	
__th Percentile
	
__%

	
__th Percentile
	
__%

	
__th or more Percentile
	
__%

 

One share of the Company’s common stock shall be issued to the Participant for every earned PSU. The Company will issue shares of common stock to the Participant as soon as administratively practicable following the date that the Committee certifies the level of performance and the number of PSUs earned by the Participant; provided, however, if any law or regulation requires the Company to take any action (including, but not limited to, the filing of a registration statement under the Securities Act and causing such registration statement to become effective) with respect to such shares of common stock before the issuance thereof, then the date of delivery of the shares shall be extended for the period necessary to take such action, to the maximum extent permitted by Section 409A of the Code. Except as specifically set forth herein, the award of PSUs shall automatically be forfeited without payment of any consideration in the event the Participant incurs a Separation from Service for any reason prior to the end of the Performance Period.

 

 

 

 

Accelerated Vesting and Delivery: In the event of (1) the Participant’s death, (2) the Participant’s Disability, or (3) a Change of Control of the Company, a portion of the granted PSUs shall be deemed earned by the Participant in an amount equal to (x) __% of the target number of PSUs granted pursuant to this Agreement multiplied by (y) a fraction, the numerator of which shall equal the number of days elapsed from the Date of Grant to the date of the applicable acceleration event and the denominator of which shall equal the days in the Performance Period.  One share of the Company’s common stock shall be issued to the Participant for every earned PSU as soon as administratively practicable following the acceleration event.

 

Dividend Credits: The Participant shall receive dividend credits upon the Company’s payment of cash dividends for its common stock during the Performance Period as follows:

 

(1)The Participant shall receive dividend credits on the target number of PSUs awarded on the Date of Grant (the “Original PSUs”), with the amount of such dividend credits credited to the Participant in the form of additional unearned PSUs, as calculated pursuant to the Plan.

 

(2)The Participant’s additional PSUs attributable to any dividend credits will be deemed earned in accordance with the same schedule as the Original PSUs (as described above).

 

(3)The delivery of additional PSUs attributable to dividend credits shall be made in a cash payment on the same date as the issuance of the common stock for the earned PSUs.

 

Designation of Beneficiary: The Participant hereby designates the following individual as the beneficiary of this Agreement:

 

Participant Name:  

Beneficiary Name:  

Address: 

Relationship: 

 

□ Check this box to apply the above beneficiary designation to all prior grants.

 

To   complete   this   beneficiary   designation,   this   Agreement   should   be   printed   out, the information above should be  completed,  and  the  Agreement  should  be  forwarded  to  _________  via  interoffice  mail  or  sent  to  _______________.  The Participant may modify this beneficiary designation by submitting the change in writing to the Company. 

 

Beneficiary designations are not effective until received by the Company. If no beneficiary is designated, then except as may be provided in the Plan, any benefits due hereunder following the death of the Participant will be paid to the Participant’s estate.

 

The PSUs granted above are subject to all restrictions, terms and conditions set forth in the Plan.   In the event of any inconsistency between this Agreement and the Plan, the provisions of the Plan shall govern. The Participant has received a copy of the Plan’s prospectus, including a copy of the Plan. The Participant agrees to the terms of this Agreement, which may be amended only upon a written agreement signed by the parties hereto.

 

If there are any questions regarding this Agreement or the award of PSUs, please refer to the Plan or contact ________________ at ________________.

 

 

 

 

ADTRAN, INC.

 

[Name of Officer]

Title:___________adtn-ex102_274.htm

Exhibit 10.2

ADTRAN, INC. 

ADtran, inc. RESTRICTED STOCK UNIT AGREEMENT

This Restricted Stock Unit Agreement (this “Agreement”) sets forth the specified terms of ADTRAN, Inc.’s grant of the number of Restricted Stock Units (“RSU”) as it set forth in the Morgan Stanley StockPlan Connect (the “Portal”) to the applicable grantee named in the Portal (the “Participant”) pursuant to the ADTRAN, Inc. 2020 Employee Stock Incentive Plan (the “Plan”) as of the date of grant set forth in the Portal.  All capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Plan.

Vesting and Delivery of Common Stock:  Each RSU shall become vested and nonforfeitable according to the following schedule, measured from the date of grant:

		
	
Anniversary of the date of grant:
	
Vested percentage:

	
___-year anniversary
	
__%

	
___-year anniversary
	
__%

	
___-year anniversary
	
__%

	
___-year anniversary
	
__%

Under the above schedule, before the one-year anniversary, no part of the award is vested or nonforteitable.

One share of the Company’s Common Stock shall be issued to the Participant for every RSU that becomes vested pursuant to the schedule above.  The Company will issue shares of Common Stock to the Participant as soon as administratively practicable following the date the applicable portion of the RSUs have become vested; provided, however, if any law or regulation requires the Company to take any action (including, but not limited to, the filing of a registration statement under the 1933 Act and causing such registration statement to become effective) with respect to such shares of Common Stock before the issuance thereof, then the date of delivery of the shares shall be extended for the period necessary to take such action, to the maximum extent permitted by Section 409A of the Code.  The unvested portion of the RSUs shall be forfeited in the event the Participant incurs a Separation from Service for any reason. 

Designation of Beneficiary:  The Participant hereby designates the following individual as the beneficiary of this Agreement:

 

 

 

 

 

 

 

 

 

 

Participant Name:__________________________________

Beneficiary Name:__________________________________

Address:__________________________________

__________________________________

Relationship:__________________________________

□ Check this box to apply the above beneficiary designation to all prior grants.  

To complete this beneficiary designation, this agreement should be printed out, the information above should then be completed, and the Agreement should then be forwarded to _______ (___________) via email.  The Participant may modify this beneficiary designation by submitting the change in writing to the Company.  Beneficiary designations are not effective until received by the Company.  If no beneficiary is designated, then except as may be provided in the Plan, any benefits due hereunder following the death of the Participant will be paid to the Participant’s estate.

The RSUs granted above are subject to all restrictions, terms and conditions set forth in the ADTRAN, Inc. 2020 Employee Stock Incentive Plan.  In the event of any inconsistency between this Agreement and the Plan, the provisions of the Plan shall govern.  The Participant has received a copy of the Plan’s prospectus, including a copy of the Plan.  The Participant agrees to the terms of this Agreement, which may be amended only upon a written agreement signed by the parties hereto or as otherwise permitted by the Plan.

If there are any questions regarding the RSUs, please refer to the Plan or contact __________.

 

ADTRAN, INC.

 

[Name of Officer]

Title:_________adtn-ex103_38.htm

Exhibit 10.3

 

ADTRAN, INC. 

PERFORMANCE SHARES AGREEMENT

This Performance Shares Agreement (this “Agreement”) sets forth the specified terms of ADTRAN, Inc.’s grant of the number of Restricted Stock Units (“Performance Shares”) as it set forth in the Morgan Stanley StockPlan Connect (the “Portal”) to the applicable grantee named in the Portal (the “Participant”) pursuant to the ADTRAN, Inc. 2020 Employee Stock Incentive Plan (the “Plan”) as of the date of grant set forth in the Portal (the “Date of Grant”).  All capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Plan.

 

Performance Period:  The period beginning on January 1, _____ and ending on December 31, ____ (the “Performance Period”).

 

Vesting and Delivery of Performance Shares:  Performance Shares shall become vested and earned pursuant to this Agreement at the target level of Adjusted EBIT (as defined below) during the Performance Period. The Adjusted EBIT target in ____ of $________ is required to achieve the target award. If the Adjusted EBIT targets are achieved per the table below at the end of the Performance Period, then the number of Performance Shares that shall become vested and earned pursuant to this Agreement shall be determined pursuant to the table below:

 

			
	
% of Target Achieved
	
Adjusted EBIT
	
% of Target Bonus

	
<__%
	
Less than $________
	
__%

	
>__% but <___%
	
At least $________but less than $________
	
__%

	
>__% but < __%
	
At least $________but less than $________
	
__%

	
>__% but < __%
	
At least $________ but less than $________
	
__%

	
>__%
	
$________or more
	
__%

 

If the target of $________is achieved at end of ____, award achievement will lock-in as a minimum level for the award payment with the vesting schedule unchanged. 

 

One share of the Company’s Common Stock shall be delivered to the Participant for every “Earned and Vested Performance Share.”  The Company will issue shares of Common Stock to the Participant as soon as administratively practicable following the date the Performance Shares have been determined to have been vested and earned (which shall be as soon as practicable following the release of the Company’s Form 10-K for the last year of the Performance Period), and in any case no later than March 15 ____; provided, however, if any law or regulation requires the Company to take any action (including, but not limited to, the filing of a registration statement under the 1933 Act and causing such registration statement to become effective) with respect to such shares of Common Stock before the delivery thereof, then the date of delivery of the shares shall be extended for the period necessary to take such action, to the maximum extent permitted by Section 409A of the Code.  Except as specifically set forth herein, the Performance Shares shall be forfeited in the event the Participant incurs a Separation from Service for any reason prior to the end of the Performance Period.

 

 

 

 

 

For purposes of this Agreement, “Adjusted EBIT” is synonymous with the Company’s non-GAAP operating income.  Using the Company’s audited financial results, it is the calculated earnings before interest and taxes adjusted for restructuring expenses; acquisition-related expenses, amortizations, and adjustments; stock-based compensation expense; amortization of actuarial pension losses, the impact of equity market changes on deferred compensation expenses; non-operating income; and any other non-GAAP exclusions adopted by the Company. 

Dividend Credits:  The Participant shall receive dividend credits upon the Company’s payment of cash dividends for its Common Stock during the Performance Period as follows:

(1) The Participant shall receive dividend credits on the unvested portion of the original number of Performance Shares awarded on the Date of Grant (“Original Performance Shares”), with the amount of such dividend credits credited to the Participant in the form of additional unvested Performance Shares, as calculated pursuant to the Plan.  

(2) The Participant’s Performance Shares attributable to any dividend credits will be vested and earned in accordance with the schedule of the Original Performance Shares (as described above).  

Designation of Beneficiary:  The Participant hereby designates the following individual as the beneficiary of this Agreement:

Participant Name:__________________________________

Beneficiary Name:__________________________________

Address:__________________________________

Relationship:__________________________________

To complete this beneficiary designation, this agreement should be printed, the information above should then be completed, and the Agreement should then be forwarded to _____ or sent to ________.  The Participant may modify this designation of beneficiary only in accordance with the terms and provisions of the Plan.  If no beneficiary is designated, then except as may be provided in the Plan, any benefits due hereunder following the death of the Participant will be paid to the Participant’s estate.

The Performance Shares granted above are subject to all restrictions, terms and conditions set forth in the ADTRAN, Inc. 2020 Employee Stock Incentive Plan.  In the event of any inconsistency between this Agreement and the Plan, the provisions of the Plan shall govern.  The Participant has received a copy of the Plan’s prospectus, including a copy of the Plan.  The Participant agrees to the terms of this Performance Shares Agreement, which may be amended only upon a written agreement signed by the parties hereto.

If there are any questions regarding the Performance Shares, please refer to the Plan or contact _________at ____________.

 

[Name of Officer]

[Title of Officer

ADTRAN Inc.

 

 

 

 

 

 

 

 

 

<<Date>>

 

 

 

Dear <<Name>>,

 

Congratulations and thank you for your consistent and dedicated effort to support the company’s goals. You have been identified as someone who can make a difference in our company’s future and as a result you have been selected to participate in a special equity overlay compensation plan approved by the ADTRAN Board of Directors. The number of employees participating in this plan is limited to a small group who will be key in achieving the objectives of the strategic plan.

 

The Board of Directors met on ______ and approved this overlay performance equity grant tied to the three-year strategic plan published in _____. The overlay equity plan is a one-time grant of Restricted Stock Units (“Performance Shares”) pursuant to the ADTRAN, Inc. 2020 Employee Stock Incentive Plan (the “Plan”) and the performance measure is a targeted growth rate of a company financial metric.

 

In your position, you are able to directly impact the company’s ability to meet the financial target and will be asked to provide leadership and individual effort as we strive to meet this goal. You have been awarded <<number of units>> performance stock units under this program. We are confident you will help ADTRAN achieve significant growth over the next two years.

 

You will receive additional information in the coming days regarding the plan targets and directions to accept your award. If you have any questions, please contact _____ at __________or __________.

 

 

Sincerely,

 

[Name of Officer]

[Title of Officer]

ADTRAN

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00327-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00327-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00327-of-00352.parquet"}]]