Document:

EX-4.1

 Exhibit 4.1 

SUMMARY OF TERMS 
 ADVA
Optical Networking SE Stock Options Assumed by 
 ADTRAN Holdings, Inc. 

With respect to those employees of ADVA Optical Networking SE (“ADVA”) who held stock options (“ADVA Options”) pursuant to the ADVA Stock
Option Right Program 2011 and applicable option rights agreements entered into thereunder (together, the “ADVA Option Agreements”) and who have elected for their ADVA Options to be assumed by ADTRAN Holdings, Inc. (“ADTRAN”),
thereafter representing options to purchase shares of ADTRAN (the “Assumed Options”), such Assumed Options will be subject to the terms and conditions of the ADTRAN, Inc. 2015 Employee Stock Incentive Plan (the “ADTRAN Plan”),
which is attached as Exhibit A hereto, except to extent set forth in the table below. Capitalized terms used but not defined below have the meanings ascribed to such terms in the Business Combination Agreement, dated as of
August 30, 2021, by and among ADVA, ADTRAN (previously known as Acorn HoldCo, Inc.), ADTRAN, Inc. and Acorn MergeCo, Inc. (the “Business Combination Agreement”). 

 

			
	Number of Assumed Options Exercisable for New ADTRAN Shares	  	The number of ADVA Options held by the employee multiplied by 0.8244 (the Exchange Ratio under the Exchange Offer) and rounded down to the nearest whole share.
	Exercise Price	  	The exercise price of the existing ADVA Option, divided by the Exchange Ratio, and converted into USD at the FX rate (USD/EUR), at xe.com, on either (i) the date that consent declarations were
distributed to holders of ADVA Options or (ii) the date of Closing of the Exchange Offer, whichever rate is more favourable to the holders of the ADVA Options, and rounded up to the nearest whole cent.
	Expiration	  	Expiration terms applicable to the Assumed Options are as provided under the ADVA Option Rights Agreements.
	Vesting	  	Vesting terms applicable to the Assumed Options are as provided under the ADVA Option Rights Agreements.
	Performance Hurdles	  	None beyond continued employment.

 EXHIBIT A 

ADTRAN, INC. 
 2015
EMPLOYEE STOCK INCENTIVE PLAN 
 ARTICLE I 

PLAN INFORMATION 
  

	1.1	 Background. ADTRAN, Inc. (the “Company”) hereby adopts this new equity incentive plan
for the benefit of its employees to replace certain Prior Plans that have expired, or will soon expire. This new plan shall be known as the ADTRAN, Inc. 2015 Employee Stock Incentive Plan (the “Plan”). 

 

	1.2	 General Purpose. The purpose of the Plan is to further the growth and development of the Company by
offering employees of the Company and its Affiliates the opportunity to own a proprietary interest in the Company. The Company intends that the Plan will provide such employees with an added incentive to continue in the employ, promote the growth,
efficiency and profitability, and help to attract outstanding employees to the service, of the Company and its Affiliates. 

  

	1.3	 Types of Awards Available Under the Plan. The Plan permits Awards of Stock Options, Stock Appreciation
Rights (“SARs”), Restricted Stock and Restricted Stock Units (“RSUs”). The types of Stock Options permitted under the Plan are incentive stock options (“ISOs”) and nonqualified stock options
(“NQSOs”). 

  

	1.4	 Intended Tax Effects of Awards. The Company intends that ISOs granted under the Plan qualify as
incentive stock options under Code Section 422. Restricted Stock Awards are subject to taxation under Code Section 83. Nonqualified Stock Options and Stock Appreciation Rights are subject to taxation when the Nonqualified Stock Option or
Stock Appreciation Right is exercised. Restricted Stock Units are subject to taxation when the underlying shares of Common Stock are issued to the Participant. It is intended that some Awards under the Plan will qualify as “performance-based
compensation” under Code Section 162(m). 

  

	1.5	 Effective Date of the Plan. The Plan shall be effective on May 13, 2015 (the “Effective
Date”), the date of the Company’s annual meeting of shareholders and provided that the Plan is approved at such meeting by the Company’s shareholders in accordance with applicable law (including, without limitation, approvals
required under Rule 16b-3, Code Section 162(m) and Code Section 422) and any registration or stock exchange rule. Notwithstanding the above, any Stock Option that is designated as an Incentive Stock
Option shall automatically be treated as a Nonqualified Stock Option if the Plan is not approved by the shareholders of the Company within twelve (12) months after the Effective Date of the Plan; no Award that is intended to qualify as
“performance-based compensation” within the meaning of Code Section 162(m) that is granted to a Covered Employee shall be effective unless and until the Plan is approved by the Company’s shareholders; and no Restricted Stock
Award shall be granted prior to approval by the Company’s shareholders. 

  

	1.6	 Term. Unless earlier terminated by the Board pursuant to the provisions of Section 10 hereof, the
Plan shall remain in effect until the tenth anniversary of January 20, 2015, the date the Plan was adopted by the Board; provided, however, that no Award that is intended to be “performance-based compensation”
under Code Section 162(m) that is granted to a Covered Employee (other than an Stock Option or Stock Appreciation Right) shall be granted on or after the five (5) year anniversary of the shareholder approval of the Plan unless the
Performance Measures have been reapproved (or other designated business criteria has been approved) by the Company’s shareholders within the previous five (5) years as required by the “performance-based compensation” exemption
under Code Section 162(m). Notwithstanding its termination, the Plan shall remain in effect with respect to outstanding Awards as long as any Awards are outstanding. 

 

	1.7	 Operation, Administration and Definitions. The operation and administration of the Plan are subject to
the provisions of this Plan document. Capitalized terms used in the Plan are defined in Article II below or may be defined within the Plan. 

  

	1.8	 Legal Compliance. The Plan is intended to comply with (A) the requirements for ISOs under Code
Section 422, (B) Code Section 409A, to the extent any Awards are treated as nonqualified deferred compensation under Code Section 409A, (C) the exemption of Awards under the provisions of Rule
16b-3 and (D) Code Section 162(m), to the extent any Awards are intended to be “performance-based compensation” under Code Section 162(m). 

 ARTICLE II 

PLAN DEFINITIONS 
 For
purposes of the Plan, the terms listed below are defined as follows: 
  

	2.1	 162(m) Performance Award means any Award that is intended to meet the exemption for
“performance-based compensation” as defined under Code Section 162(m). 

  

	2.2	 Affiliate means an entity that, directly or indirectly, controls, is controlled by, or is under
common control with the Company, within the meaning of Rule 12b-2 of the Exchange Act. 

  

	2.3	 Award means any award or benefit granted to Participant under the Plan, including, without
limitation, the grant of Stock Options, Stock Appreciation Rights, Restricted Stock and/or Restricted Stock Units. 

  

	2.4	 Award Agreement means the written (or electronic) agreement issued by the Company to the
Participant that sets forth the terms and provisions of the Award granted under the Plan. 

  

	2.5	 Base Value means the per share base price of a Stock Appreciation Right. 

 

	2.6	 Board or Board of Directors means the Board of Directors of the Company.

  

	2.7	 Cause means, as defined in such Participant’s employment, severance or similar agreement (if
any) with the Company or an Affiliate if such an agreement exists as of the Participant’s Separation from Service and contains a definition of cause (or a like term) or, if no such agreement exists or such agreement does not contain a
definition of cause (or a like term), then Cause means: 

  

	 	(A)	 willful and continued failure to substantially perform his duties with the Company within ten
(10) business days after a written demand for substantial performance is delivered to the Participant which identifies the manner in which the Company believes that the Participant has not substantially performed his duties;

  

	 	(B)	 unlawful or willful misconduct which is economically injurious to the Company or to any Affiliate;

  

	 	(C)	 commission of, or a plea of guilty or nolo contendere to, a felony charge (other than a
traffic violation); 

  

	 	(D)	 habitual drug or alcohol abuse that impairs the Participant’s ability to perform the essential duties of
his position; 

  

	 	(E)	 an act of embezzlement or fraud; 

 

	 	(F)	 competition with the business of the Company or an Affiliate, either directly or indirectly; or

  

	 	(G)	 a breach of any provision of any employment, confidentiality, intellectual property or non-competition agreement with the Company or an Affiliate, and to the extent curable, such breach is not cured by the Participant within ten (10) business days after a written notice is delivered to the
Participant. 

  

	2.8	 Change of Control means the occurrence of any of the following events on or after the Effective
Date of this Plan: 

  

	 	(A)	 Change in Ownership. A change in the ownership of the Company occurs on the date that any one person, or
more than one person acting as a group, acquires ownership of stock of the Company that, together with stock held by such person or group, constitutes more than fifty percent (50%) of the total fair market value or total voting power of the
stock of the Company. However, if any one person or more than one person acting as a group, is considered to own more than fifty percent (50%) of the total fair market value or total voting power of the stock of the Company, the acquisition of
additional stock by the same person or persons is not considered to cause a change in the ownership of the Company or to cause a change in the effective control of the Company (within the meaning of subsection (B) below). An increase in the
percentage of stock owned by any one person, or persons acting as a group, as a result of a transaction in which the Company acquires its stock in exchange for property will be treated as an acquisition of stock for purposes of this Section. This
applies only when there is a transfer of stock of the Company (or issuance of stock of the Company) and stock in the Company remains outstanding after the transaction. 

	 	(B)	 Change in Effective Control. A change in the effective control of the Company occurs on the date that
either: (1) any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons)
ownership of stock of the Company possessing thirty-five percent (35%) or more of the total voting power of the stock of the Company; or (2) a majority of members of the Board is replaced during any
12-month period by directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of the appointment or election. A change in effective control may occur in
any transaction in which either of the two corporations involved in the transaction has a Change of Control; or 

  

	 	(C)	 Change in Ownership of a Substantial Portion of Assets. A change in the ownership of a substantial
portion of the Company’s assets shall occur on the date that any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most
recent acquisition by such person or persons) assets from the Company that have a total gross fair market value equal to or more than forty percent (40%) of the total gross fair market value of all of the assets of the Company immediately prior
to such acquisition or acquisitions. For this purpose, gross fair market value means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets.

 Notwithstanding the foregoing, if it is determined that an Award hereunder is subject to Code Section 409A, the
Company will not be deemed to have undergone a Change of Control unless the Company is deemed to have undergone a “change in ownership,” a “change in effective control” or a “change in the ownership of a substantial portion
of the assets” within the meaning of Code Section 409A. 
  

	2.9	 Code means the Internal Revenue Code of 1986, as amended. A reference to any provision of the Code
includes any regulations and formal guidance issued thereunder and any reference to any successor provision of the Code. 

  

	2.10	 Committee means the committee appointed by the Board pursuant to Section 3.2 hereof to
administer and interpret the Plan in accordance with Article III. The Committee shall (A) consist of two or more individuals each of whom shall be, to the extent required by Rule 16b-3, a “non-employee director” as defined in Rule 16b-3, and to the extent required by Code Section 162(m), an Outside Director and (B) satisfy the applicable
requirements of any stock exchange or national market system on which the Common Stock may then be listed. 

  

	2.11	 Common Stock means the common stock of the Company, par value $0.01 per share.

  

	2.12	 Company means ADTRAN, Inc., a Delaware corporation, and any successor thereto.

  

	2.13	 Covered Employee means a Participant who is a “covered employee” within the meaning of
Code Section 162(m)(3). 

  

	2.14	 Disability means a Participant is unable to engage in any substantial gainful activity by reason of
any medically-determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than twelve (12) months. A Participant shall be considered
disabled only if he furnishes such proof of Disability as the Committee may reasonably require from time to time. 

  

	2.15	 Effective Date means the effective date of this Plan, which is May 13, 2015, subject to
shareholder approval as provided in Section 1.5. 

  

	2.16	 Employee means any common law employee of the Company or an Affiliate who is actively employed at
the time the Award is made. As required by law, only Employees of the Company and any Parent or Subsidiary are eligible to receive ISOs. 

  

	2.17	 Exchange Act means the Securities Exchange Act of 1934, as amended. 

 

	2.18	 Exercise Price means the purchase price of the shares of Common Stock underlying a Stock Option.

	2.19	 Fair Market Value of a share of Common Stock as of a date of determination means the following:

  

	 	(A)	 Stock Listed and Shares Traded. If the Common Stock is listed and traded on a national securities
exchange (as such term is defined by the Exchange Act) or on the NASDAQ National Market System on the date of determination, the Fair Market Value per share shall be the closing price of a share of the Common Stock on said national securities
exchange or NASDAQ National Market System on the business day immediately preceding the date of determination. If the Common Stock is traded in the over-the-counter
market, the Fair Market Value per share shall be the average of the closing bid and asked prices of a share on the business day immediately preceding the date of determination. 

 

	 	(B)	 Stock Listed But No Shares Traded. If the Common Stock is listed on a national securities exchange or on
the NASDAQ National Market System but no shares of the Common Stock are traded on the date of determination but there were shares traded on dates within a reasonable period before the date of determination, the Fair Market Value shall be the closing
price of a share of the Common Stock on the most recent date before the date of determination. If the Common Stock is regularly traded in the over-the-counter market but
no shares of the Common Stock are traded on the date of determination (or if records of such trades are unavailable or burdensome to obtain) but there were shares traded on dates within a reasonable period before the date of determination, the Fair
Market Value shall be the average of the closing bid and asked prices of a share of the Common Stock on the most recent date before the date of determination on which trading occurred. 

 

	 	(C)	 Stock Not Listed. If the Common Stock is not listed on a national securities exchange or on the NASDAQ
National Market System and is not regularly traded in the over-the-counter market, then the Committee shall determine the Fair Market Value of the Common Stock in a
manner consistent with the requirements of Code Section 409A, and in the case of an ISO, in compliance with Code Section 422. 

The Committee’s determination of Fair Market Value, which shall be made pursuant to the foregoing provisions, shall be final and binding
for all purposes of this Plan. 
  

	2.20	 Family Member means a person who is a spouse, former spouse, child, stepchild, grandchild, parent,
stepparent, grandparent, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother, sister, brother-in-law, or sister-in-law, including adoptive relationships, of the Participant, any person sharing the
Participant’s household (other than a tenant or employee), a trust in which any one or more of these persons have more than fifty percent (50%) of the beneficial interest, a foundation in which any one or more of these persons (or the
Participant) control the management of assets, and any other entity in which one or more of these persons (or the Participant) own more than fifty percent (50%) of the voting interests. 

 

	2.21	 Incentive Stock Option or ISO means an option to purchase shares of Common Stock
that is granted under Article VII hereof, designated as an incentive stock option, and intended to meet the requirements of Code Section 422. 

  

	2.22	 Nonqualified Stock Option or NQSO means an option to purchase shares of Common
Stock that is granted under Article VII hereof and not an incentive stock option within the meaning of Code Section 422. 

  

	2.23	 Officer means “officer” as defined in Rule
16a-1(f) under Section 16(a) of the Exchange Act. 

  

	2.24	 Outside Director means a member of the Board who qualifies as an “outside director,” as
that term is defined in Code Section 162(m). 

  

	2.25	 Parent means any “parent corporation” of the Company within the meaning of Code
Section 424(e). 

  

	2.26	 Participant means an individual who has been selected to receive an Award, or with respect to whom
an Award is outstanding, under the Plan. 

  

	2.27	 Performance Measures means any one or more of the criteria or measurements by which specific
performance goals may be established and performance may be measured, as determined by the Committee, in its discretion, pursuant to the provisions of Article V. 

 

	2.28	 Plan means this ADTRAN, Inc. 2015 Employee Stock Incentive Plan. 

	2.29	 Prior Plans means the: 

 

	 	(A)	 ADTRAN, Inc. 1986 Employee Incentive Stock Option Plan (expired on February 14, 1996);

  

	 	(B)	 ADTRAN, Inc. 1996 Employees Incentive Stock Option Plan (expired on February 14, 2006); and

  

	 	(C)	 ADTRAN, Inc. 2006 Employee Stock Incentive Plan (expires on January 23, 2016). 

 

	2.30	 Restricted Stock means an Award of Common Stock that is subject to such conditions, restrictions
and contingencies as the Committee determines, including the satisfaction of specified Performance Measures. 

  

	2.31	 Restricted Stock Unit or RSU means an Award of a unit representing one share of
Common Stock that upon satisfaction of certain conditions, restrictions and contingencies as the Committee determines, including the satisfaction of specified Performance Measures shall result in the issuance of one share of Common Stock.

  

	2.32	 Retirement means the date of a Participant’s Separation from Service with the Company and all
of its Affiliates at any time after (A) attaining age 65 or (B) completing twenty-five (25) years of service for the Company, any Affiliate and any predecessor of the Company or Affiliate. 

 

	2.33	 Rule 16b-3 means Rule
16b-3 under Section 16(b) of the Exchange Act, as then in effect or any successor provision. 

  

	2.34	 Securities Act means the Securities Act of 1933, as amended. 

 

	2.35	 Separation from Service means a termination of employment or service by a Participant with the
Company and its Affiliates; provided, that if any Award that is treated as nonqualified deferred compensation (within the meaning of Code Section 409A), or any dividend or dividend credit thereon, is to be paid or distributed upon a
Separation from Service, then a Separation from Service shall not occur unless it qualifies as a “separation from service” within the meaning of Code Section 409A. Unless otherwise stated in the applicable Award Agreement, a
Participant’s change in position, duties or status (e.g., from employee to consultant, consultant to director, employee to director) shall not result in interrupted or terminated employment or service, so long as such Participant
continues to provide services to the Company or an Affiliate and a “separation from service” under Code Section 409A is not deemed to have occurred. The determination of whether an authorized leave of absence or absence for military
or government service or for any other reason shall constitute a Separation from Service for purposes of any Award granted under the Plan shall be determined by the Committee and, if applicable, in accordance with Code Section 409A, which
determination shall be final and conclusive. 

  

	2.36	 Stock Appreciation Right or SAR means an Award representing a Participant’s
right to receive payment in the form of cash or Common Stock in an amount equal to the excess of the Fair Market Value of the exercised shares of Common Stock subject to such SAR (or portion thereof) over their Base Value. 

 

	2.37	 Stock Option means an ISO or NQSO, as applicable, granted to an Employee under the Plan.

  

	2.38	 Subsidiary means any “subsidiary corporation” of the Company within the meaning of Code
Section 424(f). 

  

	2.39	 Ten Percent Shareholder means an individual who owns more than ten percent (10%) of the total
combined voting power of all classes of outstanding stock of the Company, its Parent, or any of its Subsidiaries. In determining stock ownership, the attribution rules of Code Section 424(d) shall apply. 

ARTICLE III 
 PLAN
ADMINISTRATION 
  

	3.1	 General Administration. The Plan shall be administered and interpreted by the Committee (as designated
pursuant to Section 3.2). Subject to the express provisions of the Plan, the Committee shall have authority to interpret the Plan, to prescribe, amend and rescind rules and regulations relating to the Plan, to determine the terms and provisions
of the Award Agreements by which Awards shall be evidenced (which shall not be inconsistent with the terms of the Plan), and to make all other determinations necessary or advisable for the administration of the Plan, all of which determinations
shall be final, binding and conclusive on all persons. 

	3.2	 Appointment of Committee. The Board shall appoint the Committee from among its non-employee members to serve at the pleasure of the Board. The Board from time to time may remove members from, or add members to, the Committee and shall fill all vacancies thereon. 

 

	3.3	 Organization. The Committee may select one of its members as its chairman and shall hold its meetings at
such times and at such places as it shall deem advisable. A majority of the Committee shall constitute a quorum, and such majority shall determine its actions. The Committee shall keep minutes of its proceedings and shall report the same to the
Board at least annually. 

  

	3.4	 Individuals Eligible for Awards. The individuals eligible to receive Awards shall be active Employees of
the Company or its Affiliates, including Employees who are also members of the Board. Only Employees of the Company, its Parent or any Subsidiary shall be eligible to receive ISOs. 

 

	3.5	 Powers of Committee. The Committee may make one or more Awards under the Plan. The Committee shall
decide which eligible Employees shall receive an Award and when to grant an Award, the type of Award that it shall grant and the number of shares of Common Stock covered by the Award, subject to the terms of the Plan. The Committee shall also decide
the terms, conditions, performance criteria, restrictions and other provisions of the Award. The Committee shall act by a majority of its then members, at a meeting of the Committee or by unanimous written consent. The Committee shall keep adequate
records concerning the Plan and the Committee’s proceedings and acts in such form and detail as the Committee may decide. 

  

	3.6	 Delegation by Committee. Unless prohibited by applicable law or the applicable rules of a stock
exchange, the Committee may allocate all or some of its responsibilities and powers to any one or more of its members. The Committee also may delegate some or all of it administrative duties and powers to any Employee, including Officers of the
Company or any Affiliate. The Committee hereby delegates to the Company’s Chief Executive Officer the authority to grant Awards under the Plan to Employees who are not Officers of the Company or any Affiliate, provided that any
such Award shall be governed by the form of Award Agreement most recently approved by the Committee for use in making Awards under the Plan and the Chief Executive Officer shall report any such grants to the Committee at its next meeting. The
Committee hereby delegates to the Company’s Corporate Secretary the authority to document any and all Awards made by the Committee and/or the Chief Executive Officer under the Plan by execution of the appropriate Award Agreements. The Committee
may revoke any such allocation or delegation at any time. 

  

	3.7	 Information to be Furnished to Committee. In order for the Committee to discharge its duties, it may
require the Company, its Affiliates, Participants and other persons entitled to benefits under the Plan to provide it with certain data and information. 

  

	3.8	 Deferral Arrangement. The Committee may permit or require the deferral of payment of any Award, subject
to such rules and procedures as it may establish and in accordance with Code Section 409A. Unless otherwise provided in an Award Agreement, any such deferral will not include provisions for the payment or crediting of interest or dividend
equivalents. 

  

	3.9	 Indemnification. In addition to such other rights of indemnification that apply to them as members of
the Board or a committee thereof, the Company shall indemnify the members of the Committee (and any designees of the Committee, as permitted under Section 3.6), to the extent permitted by applicable law, against reasonable expenses (including,
without limitation, attorney’s fees) actually and necessarily incurred in connection with the defense of any action, suit or proceeding, or in connection with any appeal, to which they or any of them may be a party by reason of any action taken
or failure to act under or in connection with the Plan or any Award awarded hereunder, and against all amounts paid by them in settlement thereof (provided such settlement is approved to the extent required by and in the manner provided by the
Articles of Incorporation or the Bylaws of the Company relating to indemnification of the members of the Board) or paid by them in satisfaction of a judgment in any such action, suit or proceeding, except in relation to such matters as to which it
is adjudged in such action, suit or proceeding that such Committee member or members (or their designees) did not act in good faith and in a manner reasonably believed to be in or not opposed to the best interests of the Company.

 ARTICLE IV 

STOCK SUBJECT TO THE PLAN 
  

	4.1	 Common Stock Subject to Awards. Common Stock subject to Awards and other provisions of the Plan shall
consist of the following: (A) authorized but unissued shares of Common Stock; (B) authorized and issued shares of Common Stock held by the Company in its treasury which have been reacquired by the Company; and (C) shares of Common
Stock purchased by the Company in the open market. 

  

	4.2	 Authorized Shares. Subject to adjustment in accordance with the provisions of Section 4.3, the
maximum number of shares of Common Stock that may be issued under the Plan for Awards shall equal 7,700,000 shares of Common Stock, all of which may be issued as ISOs under the Plan, and adjusted as follows: 

 

	 	(A)	 Each Award of Restricted Stock or Restricted Stock Units granted under this Plan will reduce the number of
authorized shares available under the Plan by 2.5 shares of Common Stock for each share underlying such Award. 

  

	 	(B)	 Shares of Common Stock underlying an Award that is cancelled, terminated, expires without exercise, is
forfeited, or lapses for any reason shall again be available for issuance pursuant to Awards under this Plan; provided, however, shares of Common Stock underlying a cancelled, terminated, forfeited or lapsed Award of Restricted
Stock or Restricted Stock Units shall again be available for issuance and increase the number of authorized shares available under the Plan by 2.5 shares of Common Stock for each share that was covered under such cancelled, terminated, forfeited or
lapsed Award. 

  

	 	(C)	 Notwithstanding anything to the contrary herein, the following shares (or their multiple, as described above)
shall not again become available for issuance under the Plan: (1) shares of Common Stock withheld by, or otherwise remitted to, the Company as full or partial payment of the Exercise Price to the Company upon exercise of Stock Options granted
under the Plan; (2) shares of Common Stock reserved for issuance under the Plan upon the grant of SARs to the extent the number of reserved shares exceeds the number of shares actually issued upon exercise of the SARs; and (3) shares of
Common Stock withheld by, or otherwise remitted to, the Company to satisfy a Participant’s tax withholding obligations upon the lapse of restrictions on Restricted Stock or RSUs or upon the exercise of Stock Options or SARs or upon any other
payment or issuance under the Plan. 

 The Committee shall establish appropriate methods for determining the number of
shares available for issuance under the Plan and the number of shares that have been actually issued under the Plan at any time. In no event shall fractional shares of Common Stock be issued under the Plan. 

 

	4.3	 Effects on Changes in Capitalization. 

 

	 	(A)	 Changes to Common Stock. If the number of outstanding shares of Common Stock is increased or decreased
or the shares of Common Stock are changed into or exchanged for a different number or kind of shares or other securities of the Company on account of any recapitalization, reclassification, stock split, reverse split, combination of shares, exchange
of shares, stock dividend or other distribution payable in capital stock, or other increase or decrease in such shares effected without receipt of consideration by the Company occurring after the Effective Date (“Equity
Restructuring”), the number and kinds of shares for which Awards may be granted under the Plan, the Exercise Price and/or the Base Value shall be adjusted proportionately and accordingly by the Committee; provided, that any such
adjustment shall comply with Code Sections 409A and 424, if applicable, and with respect to Awards intended to qualify as 162(m) Performance Awards, such adjustments shall be made only to the extent that the Committee determines that such adjustment
may be made without causing the Company to be denied a tax deduction on account of Code Section 162(m). In addition, the number and kind of shares of Common Stock for which Awards are outstanding shall be adjusted proportionately and
accordingly so that the proportionate interest of the Participant immediately following such event shall, to the extent practicable, be the same as immediately before such event. The conversion of any convertible securities of the Company shall not
be treated as an increase in shares effected without receipt of consideration. 

  

	 	(B)	 Change of Control and Other Corporate Transactions. In the event of a merger, consolidation,
reorganization, extraordinary dividend, tender offer for Common Stock, Change of Control or other change in capital structure of the Company that is not an Equity Restructuring under subsection (A) above, the Committee may (but is not required
to) make such adjustments with respect to Common Stock that may be issued pursuant to Awards and the number and/or Exercise Price or Base Value of outstanding Awards and take such other action as it deems necessary or appropriate, including, without
limitation, and subject to the requirements of Code Sections 409A and 424, if applicable: 

	 	(1)	 making appropriate provision for the continuation of an Award by substituting on an equitable basis for the
shares of Common Stock then subject to such Award either the consideration payable with respect to the outstanding shares of Common Stock in connection with the Change of Control or securities of any successor or acquiring entity;

  

	 	(2)	 upon reasonable prior written notice to the Participant, providing that: (i) the Stock Options and/or SARs
held by such Participant, to the extent then exercisable, must be exercised within a specified number of days of the date of such notice, at the end of which period the Stock Options and/or SARs shall terminate without payment, and/or (ii) a
grant of Restricted Stock and/or RSUs Stock must be accepted (to the extent then subject to acceptance) within a specified number of days of the date of such notice, at the end of which period the offer of the Restricted Stock and/or RSUs shall
terminate; 

  

	 	(3)	 terminating an Award, whether vested or unvested, in exchange for a payment equal to (i) for Restricted
Stock and RSUs, the Fair Market Value of the shares of Common Stock subject to the Award or (ii) for Stock Options and SARs, the excess of the Fair Market Value of the shares of Common Stock subject to the Award over the Exercise Price or Base
Value, as applicable; 

  

	 	(4)	 providing that an Award shall become (as applicable) fully vested and exercisable and any vesting period or
restrictions shall lapse immediately prior to the Change of Control; and/or 

  

	 	(5)	 with respect to an Award subject to Performance Measures, providing that any incomplete performance periods
shall end on the date of such Change of Control (or other corporate transaction described in this subsection (B)), and the Committee shall cause the Award to be settled based upon the higher of: (i) the Participant’s actual attainment of
performance goals for the performance period through the date of the Change of Control (or other corporate transaction described in this subsection (B)) or (ii) the performance target award; provided, that if the Award is intended
to qualify as a 162(m) Performance Award, settlement shall be made only to the extent it complies with Code Section 162(m). 

Notwithstanding anything to the contrary, an Award having an Exercise Price or Base Value equal to or greater than the Fair Market Value of
the consideration to be paid per share of Common Stock in the Change of Control may be canceled without payment of consideration to the applicable Participant. 
  

	 	(C)	 Limits on Adjustments. Any issuance by the Company of stock of any class other than the Common Stock, or
securities convertible into shares of stock of any class, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares of the Common Stock subject to any Award, except as specifically provided
otherwise in this Plan. The grant of Awards under the Plan shall not affect in any way the right or authority of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business structure or to merge,
consolidate or dissolve, or to liquidate, sell or transfer all or any part of its business or assets. No fractional shares or other securities shall be issued pursuant to any such adjustment, and any fractions resulting from any such adjustment
shall be eliminated in each case by rounding downward to the nearest whole share with no cash payment due therefor. If the Company issues any rights to subscribe for additional shares pro rata to holders of outstanding shares of the class or classes
of stock then set aside for the Plan, then each Participant shall be entitled to the same rights on the same basis as holders of outstanding shares with respect to such portion of the Participant’s Award as is exercised on or prior to the
record date for determining shareholders entitled to receive or exercise such rights. All adjustments the Committee makes under this Plan shall be final and conclusive. 

 ARTICLE V 

PERFORMANCE-BASED COMPENSATION 
  

	5.1	 Awards of Performance-Based Compensation. The Committee may determine that a Restricted Stock or RSU
Award granted to a Participant who is designated by the Committee as likely to be a Covered Employee is intended to qualify as a 162(m) Performance Award. In such a case, the grant, exercise, vesting and/or settlement of such Award shall be
contingent upon achievement of pre-established Performance Measures and other terms set forth in this Article V. Awards intended to qualify as 162(m) Performance Awards shall be granted by a committee of
Outside Directors. Any payment of compensation with respect to an Award that is intended to qualify as a 162(m) Performance Award will be subject to the written certification of the Committee that the Performance Measures were satisfied prior to the
payment of the Award. This written certification may include the approved minutes of the Committee meeting in which the certification is made. 

  

	5.2	 Establishing Performance Measures. For each 162(m) Performance Award, the Performance Measures shall be
established by the Committee in writing no later than 90 days after the commencement of the performance period or at such other date as may be required or permitted for “performance-based compensation” under Code Section 162(m). The
Performance Measures shall consist of one or more of the business criteria set forth in Section 5.3 and a targeted level or levels of performance with respect to each of such Performance Measures, as specified by the Committee consistent with
this Article V. Performance Measures shall be objective and shall otherwise meet the requirements of Code Section 162(m), including the requirement that the level or levels of performance targeted by the Committee result in the achievement of
Performance Measures being “substantially uncertain.” Performance Measures may differ for each 162(m) Performance Award granted to any one Participant or to different Participants. 

 

	5.3	 Performance Measures. Performance Measures may include any one or more of the following:
(i) earnings before all or any taxes (“EBT”); (ii) earnings before all or any of interest expense, taxes, depreciation and amortization (“EBITDA”); (iii) earnings before all or any of interest expense, taxes,
depreciation, amortization and rent (“EBITDAR”); (iv) earnings before all or any of interest expense and taxes (“EBIT”); (v) net earnings; (vi) net income; (vii) operating income or margin;
(viii) earnings per share; (ix) growth; (x) return on shareholders’ equity; (xi) capital expenditures; (xii) expenses and expense ratio management; (xiii) return on investment; (xiv) improvements in capital
structure; (xv) profitability of an identifiable business unit or product; (xvi) profit margins; (xvii) stock price; (xviii) market share; (xvix) revenues; (xx) costs; (xxi) cash flow; (xxii) working capital;
(xxiii) return on assets; (xxiv) economic value added; (xxv) industry indices; (xxvi) peer group performance; (xxvii) regulatory ratings; (xxviii) asset quality; (xxix) gross or net profit; (xxx) net sales;
(xxxi) total shareholder return; (xxxii) sales (net or gross) measured by product line, territory, customers or other category; (xxxiii) earnings from continuing operations; (xxxiv) net worth; and (xxxv) levels of expense,
cost or liability by category, operating unit or any other delineation. Performance Measures may relate to the Company and/or one or more of its Affiliates, one or more of its divisions or units or any combination of the foregoing, on a consolidated
or nonconsolidated basis, and may be applied on an absolute basis or be relative to one or more peer group companies or indices, or any combination thereof, all as the Committee determines. In addition, to the extent consistent with the requirements
of Code Section 162(m), the Performance Measures may be calculated without regard to extraordinary items. 

  

	5.4	 Shareholder Approval. For Awards to qualify as 162(m) Performance Awards, the material terms of
Performance Measures must be disclosed to and subsequently approved (or reapproved, if applicable) by the Company’s shareholders. Performance Measures shall not be altered or replaced by any other criteria except to the extent approved by the
Company’s shareholders if shareholder approval is needed to preserve the tax deductibility of 162(m) Performance Awards to the Company. 

  

	5.5	 Settlement of Awards. 162(m) Performance Awards shall be settled in Common Stock, cash or other
property, in the discretion of the Committee, on a date specified in the Award Agreement. The Committee may, in its sole discretion, reduce the amount of any payment due to be made on 162(m) Performance Awards, in accordance with Code
Section 162(m), but may not increase the amount of any payment due under the Award. No 162(m) Performance Award shall exceed the maximum annual limit as set forth in Section 6.1. 

 ARTICLE VI 

RULES APPLICABLE TO AWARDS 
  

	6.1	 Maximum Annual Limits on Awards. Subject to adjustment as provided in Section 4.3, the number of
shares of Common Stock underlying Awards granted to a Participant in any calendar year shall not exceed 250,000 shares of Common Stock. 

  

	6.2	 Transferability. 

 

	 	(A)	 Except as provided in subsection (B) below: (1) no Award shall be assignable or transferable by the
Participant to whom it is granted, other than by will or the laws of descent and distribution; (2) Awards shall be exercisable during the Participant’s lifetime only by the Participant (or a legal representative if the Participant becomes
incapacitated); and (3) nothing contained in this Section 6.2 shall preclude a Participant from transferring shares of Restricted Stock that have vested, or shares of Common Stock that are issued in settlement of a Stock Option, SAR or
RSUs, subject to the remaining provisions of this Plan and applicable law. 

  

	 	(B)	 A Participant may transfer not for value any Award other than an ISO to any Family Member of the Participant
using such form and subject to such additional administrative procedures as approved by the Committee from time to time; provided, however, that any such Award shall remain subject to all vesting, forfeiture, and other
restrictions provided herein and in the Award Agreement to the same extent as if it had not been transferred. For purposes of this subsection (B), a “not for value” transfer is a transfer which is (1) a gift, (2) a transfer under
a domestic relations order in settlement of marital property rights; or (3) a transfer to an entity in which more than fifty percent (50%) of the voting interests are owned by Family Members (or the Participant) in exchange for an interest
in that entity. Subsequent transfers of transferred Awards are prohibited except to Family Members of the Participant in accordance with this subsection (B) or by will or the laws of descent and distribution. 

 

	6.3	 Accelerated Exercisability and Vesting. The Committee shall always have the discretionary power to
accelerate the exercisability or vesting of any Award granted under the Plan. Unless otherwise determined by the Committee and set forth in the applicable Award Agreement, in the event of one of the following events, any outstanding Awards shall
immediately become fully exercisable or vested: (1) the Participant’s death; (2) the Participant’s Separation from Service due to Disability; or (3) a Change of Control of the
Company; provided, however, if an outstanding Award of Restricted Stock or RSUs remains subject to any other type of vesting schedule or requirement (e.g., a performance-based schedule), then upon one of the above
events, a proportion of the shares subject to such Award shall become vested and nonforfeitable, equal to the proportion of the time completed through the date of the applicable event to the performance measurement period for the Award, with target
performance level deemed to be achieved as of the date of the applicable event, and in the event the Restricted Stock or RSU Award was originally scheduled without a designated target performance level (e.g., a single performance level or
minimum and maximum performance levels), then the performance level that, if met, would have resulted in the least number of shares becoming vested shall be treated as the target level. Except to the extent specifically authorized by the Committee,
no acceleration of vesting of an Award intended to qualify as a 162(m) Performance Award shall occur if such accelerated vesting would cause the Award to no longer qualify as a 162(m) Performance Award. 

 

	6.4	 Separation From Service. Unless the Committee decides otherwise, all Awards (or portions thereof) that
remain unexercisable or unvested upon the Participant’s Separation from Service for any reason other than the events listed in Section 6.3 shall be forfeited by the Participant immediately upon the date of such Separation from Service with
the Company or its Affiliates. 

  

	6.5	 Waiver of Restrictions. The Committee may elect, in its sole discretion, to waive any or all
restrictions with respect to any Award under the Plan. 

  

	6.6	 No Repricing of Awards. Except as provided in Section 4.3, the Committee shall not amend any
Stock Option or SAR to reduce its Exercise Price or Base Value, and shall not issue to any Participant a new Award in exchange for the surrender and cancellation of any other Award, if such new Award has an Exercise Price or Base Value (as
applicable) lower than that of the Award for which it is exchanged, or take any other action that would have the effect of reducing the Exercise Price or Base Value of a Stock Option or SAR. 

 ARTICLE VII 

STOCK OPTIONS 
  

	7.1	 Grant of Stock Options. The Committee may grant Stock Options for shares of Common Stock in such
amounts as it may determine and subject to the provisions of the Plan. A Stock Option shall constitute an ISO only if the Participant is an employee of the Company, its Parent or a Subsidiary and it is specifically designated as an Incentive Stock
Option in the applicable Award Agreement. 

  

	7.2	 Award Agreement. An Award of a Stock Option shall be evidenced by an Award Agreement that specifies the
following terms and any additional terms and conditions determined by the Committee and not inconsistent with the Plan: (A) the name of the Participant; (B) the total number of shares of Common Stock to which the Stock Option pertains;
(C) the Exercise Price of the Stock Option; (D) the date as of which the Committee granted the Stock Option; (E) the type of Stock Option granted; (F) the requirements for the Stock Option to become exercisable, such as
continuous service, time-based schedule, period and goals for Performance Measures to be satisfied, additional consideration, etc.; and (G) the expiration date of the Stock Option. 

 

	7.3	 Exercise Price. The per share Exercise Price of a Stock Option shall not be less than 100% of the Fair
Market Value of a share of Common Stock as of the date of grant (or, in the case of an ISO granted to a Ten Percent Shareholder, 110% of the Fair Market Value of a share of Common Stock as of the date of grant). 

 

	7.4	 Exercisability. 

 

	 	(A)	 General Schedule. Unless the Committee specifies otherwise in the Award Agreement, each Stock Option
shall become exercisable according to the following schedule, measured from the date of grant: 

  

					
	 Anniversary of the

date of grant:
	  	Vested
percentage:	 
	 One-year anniversary
	  	 	25	% 
	 Two-year anniversary
	  	 	25	% 
	 Three-year anniversary
	  	 	25	% 
	 Four-year anniversary
	  	 	25	% 

 Under the above schedule, before the one-year anniversary of its date
of grant, no part of the Stock Option is exercisable. Once a portion of a Stock Option is exercisable, that portion continues to be exercisable until the Stock Option expires (as described in Section 7.5). Fractional shares shall be disregarded
for exercise. 
  

	 	(B)	 Other Vesting Requirements. The Committee may impose any other conditions, restrictions and
contingencies on awards of Stock Options as it determines, in its sole discretion, including a requirement of continuous service and/or the satisfaction of specified Performance Measures. The Committee may designate a single goal criterion or
multiple goal criteria for performance measurement purposes. 

  

	7.5	 Expiration Date. 

 

	 	(A)	 Expiration Date. The expiration date of any Stock Option shall be the earliest to occur of the
following: 

  

	 	(1)	 Maximum Term. The date ten (10) years from the date of grant of the Stock Option (or for an ISO
granted to a Ten Percent Shareholder, five (5) years from the date of grant); 

  

	 	(2)	 Termination for Cause. The date of the Participant’s Separation from Service for Cause with
the Company and all Affiliates; 

  

	 	(3)	 Separation from Service due to Death, Disability or Retirement. The
one-year anniversary of the Participant’s Separation from Service with the Company and all Affiliates due to death, Disability or Retirement, or such shorter period as determined by the Committee and set
forth in the Award Agreement; and 

  

	 	(4)	 Separation from Service. The date that is three (3) months following the date of the
Participant’s Separation from Service with the Company and all Affiliates for any reason other than those specified elsewhere in this Section 7.5(A), or such shorter period as determined by the Committee and set forth in the Award
Agreement. 

	 	(5)	 Notwithstanding the foregoing, the Committee may, in its discretion, take formal action to amend the Award
Agreement to extend the period of exercise in unusual circumstances so long as such extension does not violate Code Section 409A. 

  

	 	(B)	 Expiration Date Following Change of Control. Notwithstanding the provisions of Section 7.5(A) above
and unless the Committee specifies otherwise in the Award Agreement, at any time following a Change of Control of the Company, in the event a Participant incurs a Separation from Service with the Company and its Affiliates for any reason other than:
(1) due to death or Disability, (2) for Cause or (3) due to a voluntary resignation, the term of all Stock Options held by such Participant shall be extended to the maximum term and original expiration date of the Stock Option as
described in Section 7.5(A)(1) above. 

  

	7.6	 Minimum Exercise Amount. Unless the Committee specifies otherwise in the Award Agreement, a Participant
may exercise a Stock Option for less than the full number of shares of Common Stock subject to the Stock Option. However, each exercise may not be made for less than 100 shares or, if less, the total remaining shares subject to the Stock Option. The
Committee may in its discretion specify other Stock Option terms, including restrictions on frequency of exercise and periods during which Stock Options may not be exercised. 

 

	7.7	 Payment of Exercise Price. The Participant must pay the full Exercise Price for shares of Common Stock
purchased upon the exercise of any Stock Option, and all applicable withholding taxes, at the time of such exercise by one of the following forms of payment: (A) cash or cash equivalents acceptable to the Company; (B) delivery (on a form
acceptable to the Committee) of an irrevocable direction to a licensed securities broker acceptable to the Company to sell shares of Common Stock and to deliver all or part of the sales proceeds to the Company in payment of the Exercise Price;
(C) delivery of shares of Common Stock already owned by the Participant (and for which the Participant has good title free and clear of any liens and encumbrances) having a Fair Market Value on the date of surrender equal to the aggregate
Exercise Price and taxes due; (D) with the Committee’s approval, having the Company withhold shares of Common Stock that otherwise would be acquired on exercise having a Fair Market Value equal to the aggregate Exercise Price, or
(E) any combination of the above forms or any other form of payment permitted by the Committee. 

  

	7.8	 Rights as a Shareholder. A Participant shall first have rights as a shareholder of the Company with
respect to shares of Common Stock covered by a Stock Option only when the Participant has paid the Exercise Price and applicable withholding taxes in full and the shares actually have been issued to the Participant. 

 

	7.9	 Limitations on ISOs. 

 

	 	(A)	 An Award shall qualify as an ISO only to the extent that the aggregate Fair Market Value (determined at the
time the Stock Option is granted) of the shares of Common Stock with respect to which all ISOs held by such Participant become exercisable for the first time during any calendar year (under the Plan, the Prior Plans, and all other plans of the
Company, its Parent or a Subsidiary) does not exceed $100,000. This $100,000 limitation shall be applied by taking ISOs into account in the order in which they were granted. Any portion of an ISO in excess of such $100,000 limitation will be treated
as a NQSO. 

  

	 	(B)	 If any Participant shall make any disposition of shares of Common Stock delivered pursuant to the exercise of
an ISO that is a disqualifying disposition, such Participant shall notify the Company of such disposition within ten (10) business days thereof. A disqualifying disposition is any disposition (including any sale) of Common Stock acquired upon
exercise of an ISO before the later of (1) two years after the grant date of the ISO or (2) one year after the date the Participant acquired the Common Stock by exercising the ISO. 

 

	 	(C)	 If all or part of an ISO is not exercised within (1) three months after the date of the Participant’s
Separation from Service for any reason except due to death or Disability or (2) within one year following Separation from Service due to death or Disability, but remains exercisable, the unexercised portion thereof shall automatically be
treated as a NQSO for the remainder of the term of the Stock Option. 

 ARTICLE VIII 

STOCK APPRECIATION RIGHTS 
  

	8.1	 Grant of SARs. The Committee may grant Stock Appreciation Rights to Participants in such amounts as it
may determine and subject to the provisions of the Plan. 

  

	8.2	 SAR Award Agreement. An Award of SARs shall be evidenced by an Award Agreement that specifies the
following terms and any additional terms and conditions determined by the Committee and not inconsistent with the Plan: (A) the name of the Participant; (B) the total number of shares of Common Stock to which the SAR pertains; (C) the
Base Value of the SAR; (D) the date as of which the Committee granted the SAR; (E) the type of SAR granted; (F) the requirements for the SAR to become exercisable, such as continuous service, time-based schedule, period and goals for
Performance Measures to be satisfied, additional consideration, etc.; and (G) the expiration date of the SAR. 

  

	8.3	 Base Value. The per share Base Value of each SAR shall not be less than 100% of the Fair Market Value of
a share of Common Stock as of the date of grant. 

  

	8.4	 Exercisability. 

 

	 	(A)	 General Schedule. Unless the Committee specifies otherwise in the SAR Agreement, each SAR shall become
exercisable according to the following schedule, measured from the date of grant: 

  

					
	 Anniversary of the

date of grant:
	  	Vested
percentage:	 
	 One-year anniversary
	  	 	25	% 
	 Two-year anniversary
	  	 	25	% 
	 Three-year anniversary
	  	 	25	% 
	 Four-year anniversary
	  	 	25	% 

 Under the above schedule, before the one-year anniversary of its date
of grant, no part of the SAR is exercisable. Once a portion of a SAR is exercisable, that portion continues to be exercisable until the SAR expires (as described in Section 8.5). Fractional shares shall be disregarded for exercise. 

 

	 	(B)	 Other Vesting Requirements. The Committee may impose any other conditions, restrictions and
contingencies on awards of SARs as it determines in its sole discretion, including a requirement of continuous service and/or the satisfaction of specified Performance Measures. The Committee may designate a single goal criterion or multiple goal
criteria for performance measurement purposes. 

  

	8.5	 Expiration Date. 

 

	 	(A)	 Expiration Date. The expiration date of any SAR shall be the earliest to occur of the following:

  

	 	(1)	 Maximum Term. The date ten (10) years from the date of grant of the SAR; 

 

	 	(2)	 Separation from Service for Cause. The date of the Participant’s Separation from Service for Cause
with the Company and all Affiliates; 

  

	 	(3)	 Separation from Service due to Death, Disability or Retirement. The
one-year anniversary of the Participant’s Separation from Service with the Company and all Affiliates due to death, Disability or Retirement, or such shorter period as determined by the Committee and set
forth in the SAR Agreement; and 

  

	 	(4)	 Separation from Service. The date that is ninety (90) days following the date of the
Participant’s Separation from Service with the Company and all Affiliates for any reason other than those specified elsewhere in this Section 8.5(A), or such shorter period as determined by the Committee and set forth in the SAR Agreement.

  

	 	(5)	 Notwithstanding the foregoing, the Committee may, in its discretion, take formal action to amend the Award
Agreement to extend the period of exercise in unusual circumstances so long as such extension does not violate Code Section 409A. 

  

	 	(B)	 Expiration Date Following Change of Control. Notwithstanding the provisions of Section 8.5(A) above
and unless the Committee specifies otherwise in the Award Agreement, at any time following a Change of Control of the Company, in the event a Participant incurs a Separation from Service with the Company and its Affiliates for any reason other than:
(1) due to death or Disability, (2) for Cause or (3) due to a voluntary resignation, the term of all SARs held by such Participant shall be extended to the maximum term and original expiration date of the SAR as described in
Section 8.5(A)(1) above. 

	8.6	 Minimum SAR Exercise Amount. Unless the Committee specifies otherwise in the SAR Agreement, a
Participant may exercise a SAR for less than the full number of shares of Common Stock subject to the SAR. However, each exercise may not be made for less than 100 shares or, if less, the total remaining shares subject to the SAR. The Committee may
in its discretion specify other SAR terms, including restrictions on frequency of exercise and periods during which SARs may not be exercised. 

  

	8.7	 Exercise of SARs. SARs may be exercised upon the terms and conditions determined by the Committee, in
its sole discretion. 

  

	8.8	 Payment of SAR Amount. Upon exercise of an SAR, a Participant shall be entitled to receive payment from
the Company equal to an amount determined by multiplying: (A) the difference between the Fair Market Value of a share of Common Stock on the date of exercise over the Base Value of the applicable SAR; by (B) the number of shares of Common
Stock with respect to which the SAR is being exercised. 

 The payment for SAR exercise may be made in cash, shares of
Common Stock or in some combination thereof at the sole discretion of the Committee. The form of payment shall be specified in the Award Agreement pertaining to the grant of the SAR. 

 

	8.9	 Rights as a Shareholder. To the extent that a Stock Appreciation Right Award is payable (in whole or in
part) in the form of shares of Common Stock, a Participant shall first have rights as a shareholder of the Company with respect to shares of Common Stock covered by the Stock Appreciation Right only when the Participant has exercised the SAR
pursuant to the terms and conditions of the Award and the shares actually have been issued to the Participant. 

ARTICLE IX 
 RESTRICTED
STOCK AND RESTRICTED STOCK UNITS 
  

	9.1	 Grants of Restricted Stock and Restricted Stock Units. The Committee may grant shares of Common
Stock as Restricted Stock or may grant Restricted Stock Units to Participants in such amounts as it may determine and subject to the provisions of the Plan. 

  

	9.2	 Restricted Stock and Award Agreement. An Award of Restricted Stock or Restricted Stock Units shall be
evidenced by an Award Agreement that specifies the following terms: (A) the name of the Participant; (B) the total number of shares of Common Stock to which the Award of Restricted Stock or Restricted Stock Units pertain; (C) the date
as of which the Committee awarded the Restricted Stock or the Restricted Stock Unit; (D) the manner in which the Restricted Stock or Restricted Stock Units will become vested, nonforfeitable and transferable and a description of any
restrictions applicable to the Restricted Stock or the Restricted Stock Units; and (E) for RSUs, when RSUs will be settled after they vest. 

  

	9.3	 Vesting. 

  

	 	(A)	 General Vesting Schedule. Unless the Committee specifies otherwise in the Award Agreement, each Award of
Restricted Stock or Restricted Stock Units shall become vested and nonforfeitable according to the following schedule, measured from the date of grant: 

  

					
	 Anniversary of the

date of grant:
	  	Vested
percentage:	 
	 One-year anniversary
	  	 	25	% 
	 Two-year anniversary
	  	 	25	% 
	 Three-year anniversary
	  	 	25	% 
	 Four-year anniversary
	  	 	25	% 

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

	 	(B)	 Other Vesting Requirements. The Committee may impose any other conditions, restrictions and
contingencies on Awards of Restricted Stock and/or Restricted Stock Units as it determines, in its sole discretion, including a requirement of continuous service and/or the satisfaction of specified Performance Measures. The Committee may determine,
in accordance with Section 5 of the Plan, that such Restricted Stock Award or RSUs are intended to qualify as 162(m) Performance Awards. 

  

	9.4	 Delivery of Restricted Stock. 

 

	 	(A)	 Issuance. The Company shall issue the shares of Restricted Stock within a reasonable period of time
after approval of the Restricted Stock Award; provided, 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 before the issuance thereof, then the date of delivery of the shares shall be extended for the period necessary to take such action. As long as any restrictions apply to the
Restricted Stock, the shares of Restricted Stock shall be held by the Committee in uncertificated form in a restricted account. 

  

	 	(B)	 Legend. Unless the certificate representing shares of the Restricted Stock is deposited with a custodian
(as described in subparagraph (C)), each certificate shall bear the following legend (in addition to any other legend required by law): 

“The transferability of this certificate and the shares represented hereby are subject to the restrictions, terms and conditions
(including forfeiture and restrictions against transfer) contained in the ADTRAN, Inc. 2015 Employee Stock Incentive Plan and an Award Agreement dated                 ,
                , between                 and ADTRAN, Inc. The Plan and the Award
Agreement are on file in the office of the Corporate Secretary of ADTRAN, Inc.” 
 Such legend shall be removed or canceled from any
certificate evidencing shares of Restricted Stock as of the date that such shares become nonforfeitable. 
  

	 	(C)	 Deposit with Custodian. As an alternative to delivering a stock certificate to the Participant, the
Committee may deposit or transfer such shares electronically to a custodian designated by the Committee. The Committee shall cause the custodian to issue a receipt for the shares to the Participant for any Restricted Stock so deposited. The
custodian shall hold the shares and deliver the same to the Participant in whose name the Restricted Stock evidenced thereby are registered only after such shares become nonforfeitable. 

 

	9.5	 Settlement of RSUs. Except as otherwise provided in the Award Agreement and in accordance with Code
Section 409A, RSUs shall generally be settled in shares of Common Stock immediately following the date they vest; provided that the Committee may specify in the applicable Award Agreement that settlement shall be in cash or in
a combination of Common Stock and cash. 

  

	9.6	 Shareholder Rights for Restricted Stock. Upon issuance of shares of Restricted Stock, the Participant
shall have immediate rights of ownership in the shares of Restricted Stock, including the right to vote the shares and the right to receive dividends with respect to the shares, notwithstanding any outstanding restrictions on the Restricted Stock.
With respect to dividends, the Committee may apply any restrictions that it determines, in its sole discretion, to dividends paid on shares of Common Stock which are still subject to vesting, and such dividends shall be paid to the Participant when
the underlying shares of Restricted Stock with respect to such dividends vest. 

  

	9.7	 Shareholder Rights for RSUs; Dividend Credits. Unless otherwise designated by the Committee in the Award
Agreement, the Participant shall have no shareholder rights with respect to the shares of Common Stock subject to the RSU, including any voting and dividend rights until actual shares of Common Stock are issued upon vesting of such RSU Award.
However the Committee may designate that the unvested portion of an RSU Award is eligible for dividend credits, in which case such dividend credits shall be paid when such underlying shares of Common Stock subject to the RSU Award are issued to the
Participant. 

 ARTICLE X 

AMENDMENT AND TERMINATION OF PLAN AND PLAN AWARDS 
  

	10.1	 Amendment and Termination By the Board. Subject to Section 10.2 below, the Board shall have the
power at any time to add to, amend, modify or repeal any of the provisions of the Plan, to suspend the operation of the entire Plan or any of its provisions for any period or to terminate the Plan in whole or in part. In the event of any such
action, to the extent it determines necessary to administer the Plan, the Committee shall prepare written procedures which, when approved by the Board, shall govern the administration of the Plan resulting from such addition, amendment,
modification, repeal, suspension or termination. No Award Agreement may be amended to reprice or constructively reprice any Award. 

  

	10.2	 Restrictions on Amendment and Termination. Notwithstanding the provisions of Section 10.1 above,
the following restrictions shall apply to the Board’s authority under Section 10.1 above: 

  

	 	(A)	 Prohibition Against Adverse Affects on Outstanding Awards. No addition, amendment,
modification, repeal, suspension or termination shall adversely affect, in any way, the rights of a Participant who has an outstanding Award without the consent of such Participant. The Committee shall not amend any Award Agreement that it
previously has authorized under the Plan that adversely affects the Participant’s rights or benefits under an Award without the written (or electronic) consent of the Participant holding such Award. 

 

	 	(B)	 Shareholder Approval Required for Certain Modifications. No modification or amendment of the Plan
may be made without the prior approval of the shareholders of the Company if (1) such modification or amendment would cause the applicable portions of the Plan to fail to qualify as an ISO plan pursuant to Code Section 422, (2) such
modification or amendment would materially increase the benefits accruing to Participants under the Plan, (3) such modification or amendment would materially increase the number of securities which may be issued under the Plan, or (4) such
modification or amendment would materially modify the requirements as to eligibility for participation in the Plan, or (5) such modification or amendment would modify the material terms of the Plan within the meaning of Treas. Reg. §1.162-27(e)(4). Clauses (2), (3) and (4) of the preceding sentence shall be interpreted in accordance with the provisions of paragraph (b)(2) of Rule 16b-3.
Shareholder approval shall be made by a majority of the votes cast at a duly held meeting at which a quorum representing a majority of all outstanding voting stock is, either in person or by proxy, present and voting, or by the written consent in
lieu of a meeting of the holders of a majority of the outstanding voting stock or such greater number of shares of voting stock as may be required by the Company’s articles or certificate of incorporation and bylaws and by applicable law;
provided, however, that for modifications described in clauses (2), (3) and (4) above, such shareholder approval, whether by vote or by written consent in lieu of a meeting, must be solicited substantially in accordance with the rules and
regulations in effect under Section 14(a) of the Exchange Act as required by paragraph (b)(2) of Rule 16b-3. 

ARTICLE XI 
 PLAN
OPERATION 
  

	11.1	 Compliance with Other Laws and Regulations. 

 

	 	(A)	 The Company shall not be required to sell or issue any shares of Common Stock under any Award if the sale or
issuance of such shares would constitute a violation by the Participant or the Company of any provision of any law or regulation of any governmental authority, including without limitation any federal or state securities laws or regulations. If at
any time the Company shall determine, in its discretion, that the listing, registration or qualification of any shares subject to an Award upon any securities exchange or under any governmental regulatory body is necessary or desirable as a
condition of, or in connection with, the issuance or purchase of shares hereunder, no shares of Common Stock may be issued or sold to the Participant exercising a Stock Option or SAR unless such listing, registration, qualification, consent or
approval shall have been effected or obtained free of any conditions not acceptable to the Company, and any delay caused thereby shall in no way affect the date of termination of the Award. 

	 	(B)	 In connection with the Securities Act, upon the exercise of any Option or SAR or the delivery of any shares of
Common Stock underlying an Award, unless a registration statement under the Securities Act is in effect with respect to the shares of Common Stock covered by such Award, the Company shall not be required to sell or issue such shares unless the
Committee has received evidence satisfactory to it that the Participant or any other individual exercising a Stock Option may acquire such shares pursuant to an exemption from registration under the Securities Act. 

 

	 	(C)	 The Company may, but shall in no event be obligated to, register any securities covered hereby pursuant to the
Securities Act. The Company shall not be obligated to take any affirmative action in order to cause the exercise of a Stock Option or the issuance of shares of Common Stock pursuant to the Plan to comply with any law or regulation of any
governmental authority. As to any jurisdiction that expressly imposes the requirement that a Stock Option or SAR shall not be exercisable until the shares of Common Stock covered by such Stock Option or SAR are registered or are exempt from
registration, the exercise of such Stock Option or SAR (under circumstances in which the laws of such jurisdiction apply) shall be deemed conditioned upon the effectiveness of such registration or the availability of such an exemption.

  

	 	(D)	 The Company may require a Participant to submit evidence that the Participant is acquiring shares of Common
Stock for investment purposes. 

  

	11.2	 Rule 16b-3. During any time when the Company has a class of
equity security registered under Section 12 of the Exchange Act, it is the intent of the Company that Awards and the vesting, exercise and settlement thereof qualify for the exemption provided by Rule
16b-3 under the Exchange Act. To the extent that any provision of the Plan or action by the Board or Committee does not comply with the requirements of Rule 16b-3, it
shall be deemed inoperative to the extent permitted by law and deemed advisable by the Board, and shall not affect the validity of the Plan. In the event that Rule 16b-3 is revised or replaced, the Board may
exercise its discretion to modify this Plan in any respect necessary to satisfy the requirements of, or to take advantage of any features of, the revised exemption or its replacement. 

 

	11.3	 Tax Withholding. The Company or Affiliate shall have the power and the right to deduct or withhold from
amounts (including withholding any shares of Common Stock that otherwise would be issued on exercise or following the vesting of an Award) to the Participant by the Company or Affiliate, or require a Participant to remit to the Company or Affiliate
as a condition of any Award, an amount (in cash or in kind, subject to the approval of the Company) sufficient to satisfy the minimum Federal, state and local taxes, domestic or foreign, required by law or regulation to be withheld with respect to
any taxable event arising as a result of the Plan. Notwithstanding the above, in the case of Stock Options and SARs, such tax withholding shall be accomplished as set forth in Sections 7.5 and 8.7. 

 

	11.4	 Limitation of Implied Rights. No provision in the Plan or in any Award Agreement shall be construed to
confer upon any individual the right to remain in the employ or service of the Company or any Affiliate, or to interfere in any way with any contractual or other right or authority of the Company or any Affiliate either to increase or decrease the
compensation or other payments to any individual at any time, or to terminate any employment or other relationship between any individual and the Company or any Affiliate. 

 

	11.5	 No Trust or Fund Created. Neither a Participant nor any other person shall, by reason of the Plan or any
Award, acquire any right in or title to any assets, funds or property, other than the Common Stock of the Company or an Affiliate, including, without limitation, any specific funds, assets, or other property which the Company or its Affiliates, in
its sole discretion, may set aside in anticipation of a liability under the Plan. A Participant shall have only a contractual right to the Common Stock underlying Awards granted under the Plan, unsecured by any assets of the Company or an Affiliate.
Nothing contained in the Plan shall constitute a guarantee that the assets of the Company or its Affiliates shall be sufficient to pay any benefits to any person. 

 

	11.6	 Nonexclusively of the Plan. Neither the adoption of the Plan nor the submission of the Plan to the
Company’s shareholders for approval shall be construed as creating any limitations upon the right and authority of the Board to adopt such other incentive compensation arrangements (which arrangements may be applicable either generally to a
class or classes of individuals or specifically to a particular individual or particular individuals). 

  

	11.7	 Conditions of Participation in the Plan. When the Committee makes an Award, it shall require a
Participant to enter into an Award Agreement in a form specified by the Committee, agreeing to the terms and conditions of the Award and to such additional terms and conditions, not inconsistent with the terms and conditions of the Plan, as the
Committee may, in its sole discretion, prescribe. If there is a conflict between any provision of an Award Agreement and the Plan, the Plan shall control. 

	11.8	 Evidence. Anyone required to give evidence under the Plan may give such evidence by certificate,
affidavit, document or other information which the person acting on the evidence considers pertinent, reliable and signed, made or presented by the proper party or parties. 

 

	11.9	 Gender and Number; Headings. Words in any gender shall include any other gender, words in the singular
shall include the plural and the plural shall include the singular. The headings in this Plan are for convenience of reference. Headings are not a part of the Plan and shall not be considered in the construction hereof. 

 

	11.10	 Legal References. Any reference in this Plan to a provision of law which is later revised, modified,
finalized or redesignated, shall automatically be considered a reference to such revised, modified, finalized or redesignated provision of law. 

  

	11.11	 Notices. In order for a Participant or other individual to give notice or other communication to the
Committee, the notice or other communication shall be in the form specified by the Committee and delivered to the location designated by the Committee in its sole discretion. 

 

	11.12	 Code Section 409A. Although the Company does not guarantee to a Participant any
particular tax treatment of an Award, Awards are intended to comply with, or be exempt from, the requirements of Code Section 409A, to the extent it applies. The Plan and each Award Agreement will be construed and interpreted in accordance with
such intent, except as otherwise determined in the sole discretion of the Committee. In no event whatsoever shall the Company or any of its Affiliates be liable for any additional tax, interest or penalties that may be imposed on a Participant
pursuant to or as a result of Code Section 409A any damages for failing to qualify for an exemption from, or comply with, Code Section 409A. If the Participant is deemed on a Separation from Service to be a “specified employee”
within the meaning of Code Section 409A(a)(2)(B), then with regard to any Award that is considered nonqualified deferred compensation under Code Section 409A payable on account of a Separation from Service, such Award shall be paid at the
date which is the earlier of (A) the expiration of the six (6)-month period measured from the date of such a Separation from Service of the Participant, and (B) the date of the Participant’s death (the “Delay
Period”). Upon the expiration of the Delay Period, all payments delayed pursuant to this Section (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid to the
Participant in a lump sum and any remaining payments due under the Award shall be paid in accordance with the normal payment dates specified for them in the Plan or the applicable Award Agreement. 

 

	11.13	 International Awards. The Committee may adopt special guidelines and provisions for Awards with respect
to Participants who are employed or reside in any country other than the United States in order to comply with the applicable laws of such other country. 

  

	11.14	 Governing Law. The Plan is governed by and shall be construed in accordance with the laws of the State
of Alabama, without regard to any choice of law principles thereof or of any other jurisdiction.azar_ex101.htm

  
 EXHIBIT 10.1 
 STOCK PURCHASE AGREEMENT
  
 THIS STOCK PURCHASE AGREEMENT (this “Agreement”) is made as of July 8, 2022 by and among, Yang, Lixue (“Purchaser”), AZAR INTERNATIONAL CORP., a Nevada corporation (the “Company”), Hilario Lopez Vargas (the “Selling Party,” and the “Executive”). The Purchaser, the Company, the Selling Party, and the Executive are sometimes collectively referred to herein as the “Parties” and individually referred to herein as a “Party.” 
  
 RECITALS
  
 WHEREAS, the Selling Party is the owner of 3,000,000 shares of Common Stock, $0.001 par value per share (the “Common Stock” or the “Shares”) of the Company.
  
 WHEREAS, pursuant to the terms and conditions of this Agreement, Selling Party desires to sell, and Purchaser desires to purchase, all of the Selling Party’s rights, title, and interest in and to all of the Shares as further described herein.
  
 NOW, THEREFORE, in consideration of the covenants, promises and representations set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the Parties agree as follows:
  
 1. Agreement to Purchase and Sell. Subject to the terms and conditions of this Agreement, Selling Party shall sell, assign, transfer, convey, and deliver to Purchaser, and Purchaser shall accept and purchase, the Shares and any and all rights in the Shares to which Selling Party is entitled, and by doing so Selling Party shall be deemed to have assigned all of his rights, titles and interest in and to the Shares to Purchaser. Such sale of the Shares shall be evidenced by stock certificates, duly endorsed in blank or accompanied by stock powers duly executed in blank or other instruments of transfer in form and substance reasonably satisfactory to the transfer agent of the Company and Purchaser. 
  
 2. Consideration. In consideration for the sale of the Shares, Purchaser shall deliver to Selling Party (the “Purchase Price”) $350,000, to be disbursed as directed by the Selling Party.
  
 3. Closing; Deliveries.
  
                 (a) The purchase and sale of the Shares shall be held on or before July 10, 2022 (the “Closing”), subject to (i) receipt by McMurdo Law Group, LLC (the “Escrow Agent”) of the stock certificate evidencing the Shares, duly endorsed in blank or accompanied by medallion guaranteed stock power duly executed in blank, or other instruments of transfer in form and substance reasonably satisfactory to Purchaser, and (iii) receipt of the executed Exhibits, as applicable.
  
                                 (b) At the Closing, Selling Party shall cause the Escrow Agent to deliver to Purchaser (A) a stock certificate evidencing the Shares, duly endorsed in blank or accompanied by medallion guaranteed stock powers duly executed in blank, or other instruments of transfer in form and substance reasonably satisfactory to Purchaser (B) any documentary evidence of the due recordation in the Company’s share register of Purchaser’s full and unrestricted title to the Shares, (C) this Agreement executed (D) Executive’s resignation as an officer and director and the appointment of Purchaser as the sole officer and director, in the form attached hereto as Exhibit A, which Company and Seller represent is in compliance with the Company’s Bylaws, (E) a written waiver of any liability of the related-party payable, in the form attached hereto as Exhibit B, (F) an Assignment of Assets and Assumption of Liabilities Agreement between the Company and its assignee transferring any and all assets used in the Company’s business or in accounts controlled by the Company, and assumption of any and all related liabilities thereto, in the form attached hereto as Exhibit C, and (G) such other documents as may be required under applicable law or reasonably requested by Purchaser, including the Company’s EDGAR codes and corporate governance documents, which shall be produced to Purchaser during due diligence under this Agreement. 
  
  
 	 
	
	

	 

 
 
  
 
 (c) At the Closing, Purchaser shall cause the Escrow Agent to deliver the Purchase Price to Selling Party, and his assignees, by wire transfer of immediately available funds to accounts designated by the Selling Party.
  
 (d) At the Closing, the Selling Party shall assume liability for any remaining accounts payable and accrued expenses and any unpaid sales and income tax, as disclosed on Schedule 3(d), which shall be paid at the time of Closing. Payment of those obligations set forth at Schedule 3(d), if any, is a condition precedent to Purchaser’s obligations under this Agreement. Failure to pay those obligations set forth at Schedule 3(d) at Closing constitutes a timely notice by Purchaser under Section 3.1 of the escrow agreement by and between the Parties. 
  
 4. Representations and Warranties of Selling Party and the Executive. As an inducement to Purchaser to enter into this Agreement and to consummate the transactions contemplated herein, Selling Party and the Executive, as applicable, represent and warrant to Purchaser, as of the date hereof and as of the Closing, as follows:
  
 4.1 Authority. Selling Party has the right, power, authority and capacity to execute and deliver this Agreement, to consummate the transactions contemplated hereby and to perform his obligations under this Agreement. This Agreement constitutes the legal, valid and binding obligations of Selling Party, enforceable against Selling Party in accordance with the terms hereof.
  
 4.2 Ownership. Selling Party is the sole record and beneficial owner of the Shares, has good and marketable title to the Shares, free and clear of all Encumbrances (hereafter defined), other than applicable restrictions under applicable securities laws, and has full legal right and power to sell, transfer and deliver the Shares to Purchaser in accordance with this Agreement. “Encumbrances” means any liens, pledges, hypothecations, charges, adverse claims, options, preferential arrangements or restrictions of any kind, including, without limitation, any restriction of the use, voting, transfer, receipt of income or other exercise of any attributes of ownership. Upon the execution and delivery of this Agreement, Purchaser will receive good and marketable title to the Shares, free and clear of all Encumbrances, other than restrictions imposed pursuant to any applicable securities laws and regulations. There are no stockholders’ agreements, voting trust, proxies, options, rights of first refusal or any other agreements or understandings with respect to the Shares.
  
 4.3 Valid Issuance. The Shares are duly authorized, validly issued, fully paid and non-assessable, and were not issued in violation of any preemptive or similar rights.
  
 4.4 No Conflict. None of the execution, delivery, or performance of this Agreement, and the consummation of the transactions contemplated hereby, conflicts or will conflict with, or (with or without notice or lapse of time, or both) result in a termination, breach or violation of (i) any instrument, contract or agreement to which any of the Selling Party is a party or by which any is bound, or to which the Shares are subject; or (ii) any federal, state, local or foreign law, ordinance, judgment, decree, order, statute, or regulation, or that of any other governmental body or authority, applicable to the Selling Party or the Shares.
  
 4.5 No Consent. No consent, approval, authorization or order of, or any filing or declaration with any governmental authority or any other person is required for the consummation by the Selling Party of any of the transactions on its part contemplated under this Agreement.
  
  
 	 
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 4.6 No Other Interest. Neither the Selling Party nor any of his affiliates has any interest, direct or indirect, in any shares of capital stock or other equity in the Company, other than the Shares.
  
 4.7 Capitalization. The authorized capital of the Company (the “Authorized Stock”), as of execution of this Agreement, consists of 75,000,000 shares of common stock, par value $0.001, of which a total of 3,895,000 shares are issued and outstanding. These shares have been duly authorized, issued, fully paid and nonassessable, free and clear of all liens, charges, pledges, security interests, encumbrances, right of first refusal, preemptive right or other restriction. No person, firm or corporation has any right, agreement, warrant or option, present or future, contingent or absolute, or any right capable of becoming a right, agreement or option to require the Company to issue any shares in its capital or to convert any securities of the Company or of any other company into shares in the capital of the Company.
  
 4.8 Filings. The Company has filed all reports and other materials required to be filed by Section 13 or 15(d) of the Exchange Act of 1934, as amended (the “Reports”)
  
 4.9 Reports. The Reports accurately reflect the corporate information of the Company. The Reports do not contain any misleading information or fail to include material information.
  
 4.10 Registration/Anti-Dilution Rights. The Company is not a party to or bound by any agreement or understanding granting registration or anti-dilution rights to any person with respect to any of its equity or debt securities; no person has a right to purchase or acquire or receive any equity or debt security of the Company.
  
 4.11 Further Assistance. The Selling Party agrees to execute and deliver such other documents and to perform such other acts as shall be necessary to effectuate the purposes of this Agreement.
  
 4.12 Litigation. To the knowledge of the Executive after reasonable inquiry, there are no actions, suits, proceedings, judgments, claims or investigations pending or threatened by or against the Company or affecting the Company or its properties, at law or in equity, before any court or other governmental agency or instrumentality, domestic or foreign, or before any arbitrator of any kind. To the knowledge of the Executive after reasonable inquiry, the Company has no knowledge of any default on its part with respect to any judgment, order, writ, injunction, decree, award, rule or regulation of any court, arbitrator, or governmental agency or instrumentality or any circumstance which would result in the discovery of such default.
  
 4.13 Liabilities. To the knowledge of the Executive after reasonable inquiry, there are no trade payables, accrued expenses, liabilities, taxes, obligations or commitments which the Company would be required to accrue or reflect in its financial statements pursuant to GAAP, other than as disclosed on the Company’s Reports or included on Schedule 4.13 attached hereto, which is hereby waived by the Executive or to be paid from the Purchase Price, as applicable, and respectively. Executive hereby covenants to update Schedule 4.13 from execution hereof to Closing and shall, at Closing, waive any and all such liabilities.
  
 4.14 Tax Returns. The Company has filed all state, federal or local income and/or franchise tax returns required to be filed by it from inception to the date hereof. Each of such income tax returns reflects the taxes due for the period covered thereby, except for amounts which, in the aggregate, are immaterial. In addition, to the knowledge of the Executive after reasonable inquiry, all such tax returns are correct and complete in all material respects. All taxes of the Company which are (i) shown as due on such tax returns, (ii) otherwise due and payable or (iii) claimed or asserted by any taxing authority to be due, have been paid. There are no liens for any taxes upon the assets of the Company, other than statutory liens for taxes not yet due and payable. The Executive does not know of any proposed or threatened tax claims or assessments.
  
  
 	 
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 4.15 Books and Records. The books and records, financial and otherwise, of the Company are in all material aspects complete and correct and have been maintained in accordance with good business and accounting practices.
   
 4.16 Financial Statements. To the knowledge of the Executive after reasonable inquiry, each of the Company’s financial statements included in the Reports has been prepared according to United States generally accepted accounting principles, as amended from time to time.
  
 4.17 Full Disclosure. To the knowledge of the Executive after reasonable inquiry, no representation or warranty of the Selling Party and/or the Executive to Purchaser in this Agreement omits to state a material fact necessary to make the statements herein, in light of the circumstances in which they were made, not misleading. There is no fact known to the Selling Party that has specific application to the Shares or the Company that materially adversely affects or, as far as can be reasonably foreseen, materially threatens the Shares or the Company that has not been set forth in this Agreement.
  
 4.18 Affiliate Status. The Selling Party is an “affiliate,” as defined in Rule 144(a), promulgated under Section 4(a)(1) of the Securities Act of 1933.
  
 4.19 Employees, Directors and Officers. The Company and the Selling Party have not entered into any employment or independent contractor agreements with any individuals or entities, or any option agreements or warrants, grants or promises for the issuance of the Authorized Stock, unless otherwise set forth in Schedule 4.19.
  
 4.20 Sham registration. The Company was formed and filed the registration statement on Form S-1 and S-1/A with an intent to operate as a publicly traded company and not as a footnote 32, “sham registration statement.”
  
 5. Representations and Warranties of Purchaser. As an inducement to Selling Party to enter into this Agreement and to consummate the transactions contemplated herein, Purchaser represents and warrants to Selling Party as follows:
  
 5.1 Authority. Purchaser has the right, power, corporate authority and capacity to execute and deliver this Agreement, to consummate the transactions contemplated hereby and to perform his obligations under this Agreement. This Agreement constitutes the legal, valid and binding obligations of Purchaser, enforceable against Purchaser in accordance with the terms hereof.
  
 5.2 No Consent. No consent, approval, authorization or order of, or any filing or declaration with any governmental authority or any other person is required for the consummation by Purchaser of any of the transactions on its part contemplated under this Agreement.
  
 5.3 No Conflict. None of the execution, delivery, or performance of this Agreement, and the consummation of the transactions contemplated hereby, conflicts or will conflict with, or (with or without notice or lapse of time, or both) result in a termination, breach or violation of (i) any instrument, contract or agreement to which Purchaser is a party or by which he is bound; or (ii) any federal, state, local or foreign law, ordinance, judgment, decree, order, statute, or regulation, or that of any other governmental body or authority, applicable to Purchaser.
  
 5.4 Potential Loss of Investment. Purchaser understands that an investment in the Shares is a speculative investment which involves a high degree of risk and the potential loss of his entire investment.
  
 5.5 Receipt of Information. Purchaser has received all documents, records, books and other information pertaining to his investment that has been requested by Purchaser. Purchaser has reviewed all the publicly available information regarding the Company, prior to such date, which can be located on sec.gov, and State of Nevada Secretary of the State web site.
  
  
 	 
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 5.6 No Advertising. At no time was Purchaser presented with or solicited by any leaflet, newspaper or magazine article, radio or television advertisement, or any other form of general advertising or solicited or invited to attend a promotional meeting otherwise than in connection and concurrently with such communicated offer.
  
 5.7 Investment Experience. Purchaser (either by herself or with her advisors) is (i) experienced in making investments of the kind described in this Agreement, (ii) able, by reason of her business and financial experience to protect her own interests in connection with the transactions described in this Agreement, and (iii) able to afford the entire loss of her investment in the Shares.
  
 5.8 Investment Purposes. Purchaser is acquiring the restricted Shares for his own account as principal, not as a nominee or agent, for investment purposes only, and not with a view to, or for, resale, distribution or fractionalization thereof in whole or in part and no other person has a direct or indirect beneficial interest in the amount of restricted Shares Purchaser is acquiring herein. Further, Purchaser does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations to such person or to any third person, with respect to the restricted Shares Purchaser is acquiring.
  
 6. Indemnification.
  
 6.1 Indemnification. Each party hereto shall jointly and severally indemnify and hold harmless the other party and such other party’s agents, beneficiaries, affiliates, representatives and their respective successors and assigns (collectively, the “Indemnified Persons”) from and against any and all damages, losses, liabilities, taxes and costs and expenses (including, without limitation, attorneys’ fees and costs) (collectively, “Losses”) resulting directly or indirectly from (a) any inaccuracy, misrepresentation, breach of warranty or non-fulfillment of any of the representations and warranties, including those found in Exhibit B, attached hereto, of such party in this Agreement or in the Reports, or any actions, omissions or statements of fact inconsistent with in any material respect any such representation or warranty, as limited by the knowledge qualifier(s) applicable thereto, (b) any failure by such party to perform or comply with any agreement, covenant or obligation in this Agreement, and (c) any findings by the Securities and Exchange Commission that the Selling Party formed the Company and filed the Company’s registration statement on Form S-1 and S-1/A as a footnote 32, “sham registration statement.”
  
 6.2 Survival. All representations, warranties, covenants and agreements of the parties contained herein or in any other certificate or document delivered pursuant hereto shall survive the date hereof until the expiration of the applicable statute of limitations.
  
 7. Miscellaneous.
  
 7.1 Further Assurances. From time to time, whether at or following the Closing, each party shall make reasonable commercial efforts to take, or cause to be taken, all actions, and to do, or cause to be done, all things reasonably necessary, proper or advisable, including as required by applicable laws, to consummate and make effective as promptly as practicable the transactions contemplated by this Agreement.
  
 7.2 Notices. All notices or other communications required or permitted hereunder shall be in writing shall be deemed duly given (a) if by personal delivery, when so delivered, (b) if mailed, three (3) business days after having been sent by registered or certified mail, return receipt requested, postage prepaid and addressed to the intended recipient as set forth below, or (c) if sent through an overnight delivery service in circumstances to which such service guarantees next day delivery, the day following being so sent to the addresses of the parties as indicated on the signature page hereto. Any party may change the address to which notices and other communications hereunder are to be delivered by giving the other parties notice in the manner herein set forth.
  
  
 	 
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 7.3 Choice of Law; Jurisdiction. This Agreement shall be governed, construed and enforced in accordance with the laws of the State of Nevada, without giving effect to principles of conflicts of law. Each of the parties agree to submit to the jurisdiction of the federal or state courts located in Clark County, Nevada in any actions or proceedings arising out of or relating to this Agreement. Each of the parties, by execution and delivery of this Agreement, expressly and irrevocably (i) consents and submits to the personal jurisdiction of any of such courts in any such action or proceeding; (ii) consents to the service of any complaint, summons, notice or other process relating to any such action or proceeding by delivery thereof to such party as set forth in Section 7.2 above and (iii) waives any claim or defense in any such action or proceeding based on any alleged lack of personal jurisdiction, improper venue or forum non conveniens or any similar basis. EACH OF THE UNDERSIGNED HEREBY WAIVES FOR ITSELF AND ITS PERMITTED SUCCESSORS AND ASSIGNS THE RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING INSTITUTED IN CONNECTION WITH THIS AGREEMENT.
  
 7.4 Entire Agreement. This Agreement sets forth the entire agreement and understanding of the parties in respect of the transactions contemplated hereby and supersedes all prior and contemporaneous agreements, arrangements and understandings of the parties relating to the subject matter hereof. No representation, promise, inducement, waiver of rights, agreement or statement of intention has been made by any of the parties which is not expressly embodied in this Agreement.
  
 7.5 Assignment. Each party’s rights and obligations under this Agreement shall not be assigned or delegated, by operation of law or otherwise, without the other party’s prior written consent, and any such assignment or attempted assignment shall be void, of no force or effect, and shall constitute a material default by such party.
  
 7.6 Amendments. This Agreement may be amended, modified, superseded or cancelled, and any of the terms, covenants, representations, warranties or conditions hereof may be waived, only by a written instrument executed by the parties hereto.
  
 7.7 Waivers. The failure of any party at any time or times to require performance of any provision hereof shall in no manner affect the right at a later time to enforce the same. No waiver by any party of any condition, or the breach of any term, covenant, representation or warranty contained in this Agreement, whether by conduct or otherwise, in any one or more instances shall be deemed to be or construed as a further or continuing waiver of any such condition or breach or a waiver of any other term, covenant, representation or warranty of this Agreement.
  
 7.8 Counterparts. This Agreement may be executed simultaneously in two or more counterparts and by facsimile, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
  
 7.9 Severability. If any term, provisions, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon such determination, the parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible.
  
 7.10 Interpretation. The parties agree that this Agreement shall be deemed to have been jointly and equally drafted by them, and that the provisions of this Agreement therefore shall not be construed against a party or parties on the ground that such party or parties drafted or was more responsible for the drafting of any such provision(s). The parties further agree that they have each carefully read the terms and conditions of this Agreement, that they know and understand the contents and effect of this Agreement and that the legal effect of this Agreement has been fully explained to its satisfaction by counsel of its own choosing.
  
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 IN WITNESS WHEREOF, the Parties have duly executed this Stock Purchase Agreement as of the date first above written.
  
  
 	 	SELLING PARTY and EXECUTIVE	
	 	 	 	 
		By:	/s/ Hilario Lopez Vargas	
	  
	  
	Hilario Lopez Vargas	 
	 	 		 
	  
	 COMPANY: AZAR INTERNATIONAL CORP
	  

	  
	  
	  
	  

	  
	  
	 /s/ Hilario Lopez Vargas
	  

	 	 	 Name: Hilario Lopez Vargas
	 
	  
	  
	 Its: Chief Executive Officer 
	  

	  
	  
	  
	  

	  
	 PURCHASER
	  

	  
	  
	  
	  

	  
	  
	 /s/ Yang, Lixue
	  

	  
	  
	 Yang, Lixue  
	  

 
 
  
 
  
 	 
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 Schedule 3(d)
  
 Tax Liabilities
  
 $0
  
  
 	 
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 Schedule 4.13
  
 Liabilities
  
 Accounts Payable- $3
  
 Loans from related parties- $17,107
  
  
 	 
	9
	

	 

 
 
  
 
 Schedule 4.19
  
 Agreements, Options, Warrants or Grants
  
 None.
  
  
 	 
	10
	

	 

 
 
  
 
 EXHIBIT A
  
 DIRECTORS RESOLUTIONS 
  
 OF
  
 AZAR INTERNATIONAL CORP.
  
  (the “Company”)
  
 WHEREAS: 
  
 A. Hilario Lopez Vargas has consented to step down as President, Chief Executive Officer, Chief Financial Officer, Secretary, Treasurer and as a Member of the Board of Directors of the Company.
  
 B. Yang, Lixue has consented to act as the new President, Chief Executive Officer, Chief Financial Officer, Secretary, Treasurer and Chairman of the Board of Directors of the Company.
  
 BE IT RESOLVED THAT:
  
 C. Hilario Lopez Vargas stepped down as President, Chief Executive Officer, Chief Financial Officer, Secretary, Treasurer and as a Member of the Board of Directors of the Company.
  
 D. Yang, Lixue has consented to act as the new President, Chief Executive Officer, Chief Financial Officer, Secretary, Treasurer and Chairman of the Board of Directors of the Company.
  
  
 	 Effective date: July 8, 2022
		
	 	 	 	 
				
	  
	  
	Hilario Lopez Vargas	 
	 	 		 
	  
	  
	  
	  

	 	 	Yang, Lixue	 

 
 
  
 
  
 	 
	11
	

	 

 
 
  
 
 EXHIBIT B
  
 I, Hilario Lopez Vargas, hereby waive any and all rights to the liabilities and debt owed to me by AZAR INTERNATIONAL CORP. (the “Company”), and assume responsibility for any other liabilities of the Company, as reported in the Company’s quarterly report for the period ended May 31, 2022 (the “10-Q”), and as further or additionally disclosed in the Company on even day herewith. Furthermore, I hereby confirm that, other than as reported in the 10-Q and the Schedule, there are no liabilities of the Company.
  
  
 	 		
	 	 	 	 
			/s/ Hilario Lopez Vargas	
	  
	  
		 
	 	 	Hilario Lopez Vargas	 

 
 
  
 
  
 	 
	12
	

	 

 
 
  
 
 EXHIBIT C
  
 Assignment of Rights and Assumption of Liabilities Agreement
  
  
 	 
	13

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