Document:

FORM OF WARRANT

THE SECURITIES  REPRESENTED BY THIS WARRANT HAVE NOT BEEN  REGISTERED  UNDER THE
SECURITIES ACT OF 1933, AS AMENDED,  OR APPLICABLE  STATE  SECURITIES  LAWS. THE
SECURITIES  HAVE BEEN ACQUIRED FOR  INVESTMENT  AND MAY NOT BE OFFERED FOR SALE,
SOLD,  TRANSFERRED  OR  ASSIGNED  IN THE  ABSENCE OF AN  EFFECTIVE  REGISTRATION
STATEMENT FOR THE SECURITIES  UNDER THE  SECURITIES ACT OF 1933, AS AMENDED,  OR
APPLICABLE STATE  SECURITIES  LAWS, OR AN OPINION OF COUNSEL IN FORM,  SUBSTANCE
AND SCOPE REASONABLY  ACCEPTABLE TO THE ISSUER THAT REGISTRATION IS NOT REQUIRED
UNDER SAID ACT OR APPLICABLE  STATE  SECURITIES  LAWS OR UNLESS SOLD PURSUANT TO
RULE 144 UNDER SAID ACT.

                             FINANCIALCONTENT, INC.

                        WARRANT TO PURCHASE COMMON STOCK

Warrant No.:  2002-2                          Warrant to Purchase 200,000 Shares
Date of Issuance: March 12, 2002

         FINANCIALCONTENT,  INC., a Delaware corporation (the "Company"), hereby
certifies that, for value received, Owen Naccarato ("Naccarato"), the registered
holder hereof or its assigns, is entitled, subject to the terms set forth below,
to purchase  from the Company  upon  surrender of this  Warrant,  at any time or
times on or after the date hereof, but not after 5:00 P.M. Eastern Standard Time
on  the  Expiration   Date  (as  defined   herein)  the  number  of  fully  paid
nonassessable  shares of Common Stock set forth at ss. 2(i) below of the Company
(the "Warrant  Shares") at the purchase price per share provided in Section 1(b)
below (the "Warrant Exercise Price").

         Section 1.        General Provisions
                           ------------------

                  (a) Director  Agreement.  This Warrant is issued in connection
         with  Nacarrato's  affiliation as a member of the Board of Directors of
         the Company.

                  (b) Definitions. The following words and terms as used in this
         Warrant shall have the following meanings:

                           "Average  Market  Price"  means,  with respect to any
                  security for any period, that price which shall be computed as
                  the arithmetic average of the last closing bid prices for such
                  security for each trading day in such period on the  principal
                  securities  exchange or trading market for such security where
                  such  security is listed or traded as  reported  by  Bloomberg
                  Financial Markets ("Bloomberg"), or if the market value cannot
                  be calculated for such period on the foregoing bases, the last
                  closing  bid price of such  security  in the  over-the-counter
                  market on the pink sheets or bulletin  board for such security
                  as  reported  by  Bloomberg,  or, if no  closing  bid price is
                  reported  for such  security by  Bloomberg,  the last  closing
                  trade price of such security as reported by Bloomberg.  If the
                  market  value cannot be  calculated  for such period on any of
                  the  foregoing  bases,  the Average  Market Price shall be the
                  average  fair market  value  during such period as  reasonably
                  determined  in good  faith by the  Board of  Directors  of the
                  Company (all as appropriately adjusted for any stock dividend,
                  stock, split or other similar transaction during such period).

                                      -1-
<PAGE>

                           "Common Stock" means (i) the Company's  common stock,
                  par value  $0.0001 per share,  and (ii) any capital stock into
                  which such Common Stock shall have been changed or any capital
                  stock resulting from a reclassification of such Common Stock.

                           "Expiration  Date"  means the date two (2) years from
                  the date of this Warrant or, if such date falls on a Saturday,
                  Sunday or other day on which banks are required or  authorized
                  to be closed in the State of  California  (a  "Holiday"),  the
                  next preceding date that is not a Saturday, Sunday or Holiday.

                           "Person"  means an  individual,  a limited  liability
                  company,  a  partnership,  a joint venture,  a corporation,  a
                  trust, an unincorporated  organization and a government or any
                  department or agency thereof.

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

                           "Warrant"  shall mean this  warrant and all  warrants
                  issued in exchange, transfer or replacement of any thereof.

                           "Warrant  Exercise Price" shall be equal to $0.25 per
                  share, subject to adjustment as hereinafter provided.

                  (c) Other Definitional Provisions.
                      ------------------------------

                           (i)  Except  as  otherwise   specified  herein,   all
                  references  herein  (A) to the  Company  shall  be  deemed  to
                  include the Company's successors and (B) to any applicable law
                  defined or referred to herein,  shall be deemed  references to
                  such  applicable  law as the  same  may  have  been  or may be
                  amended or supplemented from time to time.

         Section 2.        Exercise of Warrant.
                           --------------------

                  (a) Subject to the terms and conditions  hereof,  this Warrant
         may be exercised by the holder  hereof then  registered on the books of
         the Company,  in whole or in part, at any time during  normal  business
         hours on any  business  day on or after the  opening of business on the
         date  hereof  and  prior  to 5:00  P.M.  Pacific  Standard  Time on the
         Expiration Date by (i) delivery of a written notice, in the form of the
         subscription  notice  attached  as Exhibit A hereto,  of such  holder's
         election to exercise  this  Warrant,  which  notice  shall  specify the
         number of Warrant  Shares to be purchased,  (ii) payment to the Company
         of an amount  equal to the Warrant  Exercise  Price  multiplied  by the
         number of Warrant  Shares as to which the  Warrant  is being  exercised
         (plus any applicable issue or transfer taxes) (the "Aggregate  Exercise
         Price") in cash or by check or wire  transfer,  and (iii) the surrender
         of this Warrant, at the principal office of the Company; provided, that
         if such Warrant  Shares are to be issued in any name other than that of
         the registered holder of this Warrant,  such issuance shall be deemed a
         transfer and the provisions of Section 7 shall be applicable.

                                      -2-
<PAGE>

                  (b) In the event of any exercise of the rights  represented by
         this Warrant in compliance  with this Section  2(a), a  certificate  or
         certificates for the Warrant Shares so purchased, in such denominations
         as may be requested by the holder hereof and registered in the name of,
         or as directed  by, the holder,  shall be  delivered  at the  Company's
         expense to, or as directed by, such holder as soon as practicable after
         such  rights  shall have been so  exercised,  and in any event no later
         than five (5)  business  days  after  such  exercise.  In the case of a
         dispute as to the  determination  of the Warrant  Exercise Price or the
         Average Market Price of a security or the arithmetic calculation of the
         Warrant  Shares,  the Company  shall  promptly  issue to the holder the
         number of shares of Common  Stock that is not disputed and shall submit
         the disputed  determinations  or arithmetic  calculations to the holder
         via   facsimile   within  one  (1)  day  of  receipt  of  the  holder's
         subscription  notice. If the holder and the Company are unable to agree
         upon the  determination of the Warrant Exercise Price or Average Market
         Price or arithmetic  calculation  of the Warrant  Shares within one (1)
         business day of such disputed  determination or arithmetic  calculation
         being  submitted  to the  holder,  then the Company  shall  immediately
         submit via  facsimile  (i) the  disputed  determination  of the Warrant
         Exercise Price or the Average Market Price to an independent, reputable
         investment banking firm or (ii) the disputed arithmetic  calculation of
         the Warrant Shares to its independent,  outside accountant. The Company
         shall cause the investment banking firm or the accountant,  as the case
         may be, to perform the  determinations  or calculations  and notify the
         Company  and the holder of the results no later than  forty-eight  (48)
         hours  from  the  time  it  receives  the  disputed  determinations  or
         calculations.  Such investment bank's or accountant's  determination or
         calculation,  as the case may be,  shall be  deemed  conclusive  absent
         manifest error.

                  (c) Unless the rights  represented  by this Warrant shall have
         expired or shall have been fully exercised,  the Company shall, as soon
         as  practicable  and in any event no later than five (5) business  days
         after  any  exercise  and at  its  own  expense,  issue  a new  Warrant
         identical in all respects to the Warrant  exercised except (i) it shall
         represent  rights to purchase the number of Warrant Shares  purchasable
         immediately  prior to such exercise under the Warrant  exercised,  less
         the  number of Warrant  Shares  with  respect to which such  Warrant is
         exercised,  and  (ii)  the  holder  thereof  shall  be  deemed  for all
         corporate  purposes to have become the holder of record of such Warrant
         Shares  immediately prior to the close of business on the date on which
         the Warrant is surrendered  and payment of the amount due in respect of
         such exercise and any  applicable  taxes is made,  irrespective  of the
         date of delivery of certificates evidencing such Warrant Shares, except
         that,  if the date of such  surrender  and  payment  is a date when the
         stock  transfer books of the Company are properly  closed,  such person
         shall be deemed to have become the holder of such Warrant Shares at the
         opening  of  business  on the next  succeeding  date on which the stock
         transfer books are open.

                  (d) No fractional shares of Common Stock are to be issued upon
         the exercise of this Warrant, but rather the number of shares of Common
         Stock issued upon  exercise of this Warrant shall be rounded up or down
         to the nearest whole number.

                  (e) If the Company  shall fail for any reason or for no reason
         to issue to a holder  within  five (5)  business  days  after  the time
         required  under this Section 2, a certificate  for the number of shares
         of Common  Stock to which  the  holder is  entitled  upon the  holder's
         exercise  of this  Warrant or a new Warrant for the number of shares of
         Common Stock to which such holder is entitled pursuant to this Warrant,
         the  Company  shall,  in  addition  to any other  remedies  under  this
         Agreement  or  otherwise   available  to  such  holder   including  any

                                      -3-
<PAGE>

         indemnification  pursuant to the Advisor  Agreement,  pay as additional
         damages in cash to such holder for each day such issuance is not timely
         effected after the fifth (5th) business day following the time required
         under this Section 2, an amount equal to 0.1% of the product of (x) the
         number  of shares of Common  Stock  not  issued to the  holder  and the
         number of shares of Common  Stock  represented  by the new  Warrant not
         issued to the  holder on a timely  basis  and to which  such  holder is
         entitled hereunder and (y) the Closing Bid Price of the Common Stock on
         the last  possible  date which the  Company  could have issued such new
         Warrant or shares of Common Stock to such holder without violating this
         Section 2.

                  (f) Subject to all  conditions  herein,  this Warrant shall be
         exercisable after March 12, 2002 and thereafter until its expiration.

                  (g) In the event that  either (i) Tint is not an advisor  with
         the  Company  as of 5:00 pm on  March  12,  2002,  or (ii)  Tint is not
         employed  by the  Company  as of 5:00 pm on the  ninetieth  (90th)  day
         before  the day that this  Warrant  is  presented  by the  holder to be
         exercised, then this Warrant shall be deemed to have expired upon March
         12, 2002, and shall thus be non-exercisable.

                  (h) The number of Warrant  Shares  which holder is entitled to
         purchase shall be 200,000.

         Section 3.        Covenants  as to Common  Stock.  The  Company  hereby
covenants and agrees as follows:

                  (a) This Warrant is duly authorized and validly issued.

                  (b) All Warrant  Shares  which may be issued upon the exercise
         of the rights  represented  by this Warrant  will,  upon  issuance,  be
         validly issued,  fully paid and  nonassessable and free from all taxes,
         liens and charges with respect to the issue thereof.

                  (c) During the period within which the rights  represented  by
         this  Warrant  may be  exercised,  the  Company  will at all times have
         authorized  and  reserved at least the number of shares of Common Stock
         needed to provide for the  exercise of the rights then  represented  by
         this Warrant and the par value of said shares will at all times be less
         than or equal to the applicable Warrant Exercise Price.

                  (d) The Company will not, by amendment of its  Certificate  of
         Incorporation  or  through  any  reorganization,  transfer  of  assets,
         consolidation, merger, dissolution, issue or sale of securities, or any
         other  voluntary  action,  avoid or seek to  avoid  the  observance  or
         performance  of any of the  terms to be  observed  or  performed  by it
         hereunder,  but will at all times in good faith  assist in the carrying
         out of all the provisions of this Warrant and in the taking of all such
         action as may  reasonably be requested by the holder of this Warrant in
         order to protect the  exercise  privilege of the holder of this Warrant
         against  dilution or other  impairment,  consistent  with the tenor and
         purpose  of  this  Warrant.  Without  limiting  the  generality  of the
         foregoing,  the  Company  (i) will not  increase  the par  value of any
         shares of Common  Stock  receivable  upon the  exercise of this Warrant
         above the  Exercise  Price then in effect,  and (ii) will take all such
         actions as may be  necessary or  appropriate  in order that the Company
         may validly and legally  issue fully paid and  nonassessable  shares of
         Common Stock upon the exercise of this Warrant.

                                      -4-
<PAGE>

                  (e) This Warrant will be binding upon any entity succeeding to
         the  Company  by  merger,   consolidation  or  acquisition  of  all  or
         substantially all of the Company's assets.

         Section 4.        Taxes.  The Company  shall not be required to pay any
tax or taxes  attributable to the initial  issuance of the Warrant Shares or any
permitted  transfer  involved in the issue or delivery of any  certificates  for
Warrant Shares in a name other than that of the registered holder hereof or upon
any permitted transfer of this Warrant.

         Section 5.        Warrant  Holder Not Deemed a  Stockholder.  Except as
otherwise  specifically  provided  herein,  no holder,  as such, of this Warrant
shall be entitled to vote or receive dividends or be deemed the holder of shares
of the Company for any purpose,  nor shall anything contained in this Warrant be
construed  to confer  upon the holder  hereof,  as such,  any of the rights of a
stockholder of the Company or any right to vote, give or withhold consent to any
corporate action (whether any reorganization,  issue of stock,  reclassification
of stock,  consolidation,  merger,  conveyance or otherwise),  receive notice of
meetings,  receive dividends or subscription rights, or otherwise,  prior to the
issuance to the holder of this Warrant of the Warrant  Shares which he or she is
then  entitled to receive  upon the due exercise of this  Warrant.  In addition,
nothing contained in this Warrant shall be construed as imposing any liabilities
on such holder to purchase any  securities or as a  stockholder  of the Company,
whether  such  liabilities  are  asserted by the Company or by  creditors of the
Company.  Notwithstanding this Section 5, the Company will provide the holder of
this Warrant with copies of the same notices and other  information given to the
stockholders of the Company generally, contemporaneously with the giving thereof
to the stockholders.

         Section 6.        Representations   of  Holder.   The  holder  of  this
Warrant, by the acceptance hereof,  represents that it is acquiring this Warrant
and the Warrant  Shares for its own account for  investment  and not with a view
to, or for sale in connection  with,  any  distribution  hereof or of any of the
shares of Common Stock or other securities  issuable upon the exercise  thereof,
and not with  any  present  intention  of  distributing  any of the  same.  Upon
exercise of this Warrant, the holder shall, if requested by the Company, confirm
in writing,  in a form  satisfactory to the Company,  that the Warrant Shares so
purchased  are being  acquired  solely for the holder's own account and not as a
nominee  for  any  other  party,  for  investment,  and not  with a view  toward
distribution or resale. If such holder cannot make such representations  because
they would be  factually  incorrect,  it shall be a condition  to such  holder's
exercise of the Warrant that the Company receive such other  representations  as
the  Company  considers  reasonably  necessary  to assure the  Company  that the
issuance of its  securities  upon  exercise of the Warrant shall not violate any
United States or state securities laws.

         Section 7.        Ownership and Transfer.

                  (a) The  Company  shall  maintain at its  principal  executive
         offices  (or such  other  office  or agency  of the  Company  as it may
         designate by notice to the holder hereof), a register for this Warrant,
         in which the Company shall record the name and address of the person in
         whose  name  this  Warrant  has  been  issued,  as well as the name and
         address of each  transferee.  The Company may treat the person in whose
         name any Warrant is  registered on the register as the owner and holder
         thereof for all purposes,  notwithstanding  any notice to the contrary,
         but in all events recognizing any transfers made in accordance with the
         terms of this Warrant.

                                      -5-
<PAGE>

                  (b) This Warrant and the rights  granted to the holder  hereof
         are transferable,  in whole or in part, upon surrender of this Warrant,
         together with a properly  executed warrant power in the form of Exhibit
         B attached hereto;  provided,  however, that any transfer or assignment
         shall be subject to the conditions set forth in Section 7(c) below.

                  (c) The holder of this Warrant  understands  that this Warrant
         has not been and is not expected to be, registered under the Securities
         Act or any state  securities  laws,  and may not be  offered  for sale,
         sold,  assigned  or  transferred  unless  (a)  subsequently  registered
         thereunder,  or (b) such holder shall have  delivered to the Company an
         opinion  of  counsel,   reasonably  satisfactory  in  form,  scope  and
         substance to the Company, to the effect that the securities to be sold,
         assigned or transferred may be sold,  assigned or transferred  pursuant
         to an exemption from such registration; (i) any sale of such securities
         made in reliance on Rule 144  promulgated  under the Securities Act may
         be made only in accordance with the terms of said Rule and further,  if
         said  Rule is not  applicable,  any  resale  of such  securities  under
         circumstances  in which the seller (or the person through whom the sale
         is made) may be deemed to be an underwriter (as that term is defined in
         the Securities  Act) may require  compliance  with some other exemption
         under the Securities Act or the rules and regulations of the Securities
         and Exchange  Commission  thereunder;  and (ii) neither the Company nor
         any other  person is under any  obligation  to  register  the  Series A
         Preferred  Share  Warrants  under  the  Securities  Act  or  any  state
         securities  laws or to  comply  with the terms  and  conditions  of any
         exemption thereunder.

         Section 8.        Adjustment  of Warrant  Exercise  Price.  In order to
prevent dilution of the rights granted under this Warrant,  the Warrant Exercise
Price shall be adjusted from time to time as follows: If the Company at any time
after the date of  issuance of this  Warrant,  subdivides  (by any stock  split,
stock  dividend,  recapitalization  or  otherwise)  one or more  classes  of its
outstanding  shares of Common Stock into a greater number of shares, the Warrant
Exercise  Price  in  effect  immediately  prior  to  such  subdivision  will  be
proportionately reduced and the number of shares of Common Stock obtainable upon
exercise of this Warrant will be  proportionately  increased.  If the Company at
any time after the date of issuance of this Warrant  combines  (by  combination,
reverse stock split or otherwise) one or more classes of its outstanding  shares
of Common Stock into a smaller number of shares,  the Warrant  Exercise Price in
effect immediately prior to such combination will be  proportionately  increased
and the  number of  shares of Common  Stock  obtainable  upon  exercise  of this
Warrant will be proportionately decreased.

                  (a) Notices.

                           (i)  Immediately  upon any  adjustment of the Warrant
                  Exercise  Price,  the Company will give written notice thereof
                  to the holder of this  Warrant,  setting  forth in  reasonable
                  detail and certifying the calculation of such adjustment.

                           (ii) The  Company  will  give  written  notice to the
                  holder of this  Warrant at least twenty (20) days prior to the
                  date on which the  Company  closes its books or takes a record
                  (A) with  respect to any  dividend  or  distribution  upon the
                  Common  Stock,  (B) with respect to any pro rata  subscription
                  offer to holders of Common Stock or (C) for determining rights
                  to vote with  respect to any Organic  Change,  dissolution  or
                  liquidation,  except  that in no event  shall  such  notice be
                  provided to such holder prior to such  information  being made
                  known to the public.

                                      -6-
<PAGE>

         Section  9.       Lost, Stolen, Mutilated or Destroyed Warrant. If this
Warrant is lost, stolen,  mutilated or destroyed,  the Company shall, on receipt
of an indemnification undertaking,  issue a new Warrant of like denomination and
tenor as the Warrant so lost, stolen, mutilated or destroyed.

         Section  10.      Notice.  Any  notices,  consents,  waivers,  or other
communications required or permitted to be given under the terms of this Warrant
must be in writing and will be deemed to have been  delivered  (i) upon receipt,
when delivered personally; (ii) upon receipt, when sent by facsimile, provided a
copy is mailed by U.S. certified mail, return receipt requested; (iii) three (3)
days after being sent by U.S. certified mail, return receipt requested;  or (iv)
one (1) day  after  deposit  with a  nationally  recognized  overnight  delivery
service,  in each case properly  addressed to the party to receive the same. The
addresses and facsimile numbers for such communications shall be:

                  If to the Company:

                           FINANCIALCONTENT, INC.
                           199 California Drive, Suite 207
                           Millbrae, CA 94030

                  If to a holder of this Warrant:  to the address at the address
                  set forth below such holder's  signature on the signature page
                  hereof.

Each party shall provide five (5) days' prior written  notice to the other party
of any change in address or facsimile number.

         Section  11.      Miscellaneous.  This  Warrant and any term hereof may
be changed, waived,  discharged,  or terminated only by an instrument in writing
signed by the party or holder hereof  against which  enforcement of such change,
waiver, discharge or termination is sought. The headings in this Warrant are for
convenience  of  reference  only and  shall not limit or  otherwise  affect  the
meaning hereof. This Warrant shall be governed by and interpreted under the laws
of the State of California.

         Section 12.       Date.  The date of this  Warrant  is March 12,  2002.
This  Warrant,  in all events,  shall be wholly void and of no effect  after the
close of business on the Expiration Date, except that  notwithstanding any other
provisions  hereof, the provisions of Section 7 shall continue in full force and
effect after such date as to any Warrant Shares or other securities  issued upon
the exercise of this Warrant.

                                     * * * *

                                     FINANCIALCONTENT, INC.

                                     By: ___________________________________

                                     Name:__________________________________

                                     Title:_________________________________

ACCEPTED:

_____________________________
Owen Naccarato

                                      -7-
<PAGE>

                              EXHIBIT A TO WARRANT
                              --------------------

                                SUBSCRIPTION FORM

        TO BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS WARRANT

                             FINANCIALCONTENT, INC.

         The  undersigned  hereby  exercises the right to purchase the number of
Warrant  Shares  covered  by  this  Warrant  specified  below  according  to the
conditions  thereof  and  herewith  makes  payment  therefor  in the  amount  of
$____________________,  the Aggregate  Exercise  Price of such Warrant Shares in
full, and requests that such Warrant Shares be issued in the name of:

                                 Owen Naccarato

Dated: ________________
                                By: ___________________________________
                                Name: _________________________________
                                Title: ________________________________
                                Address: ______________________________
                                         ______________________________
                                         ______________________________

                                Number of Warrant Shares
                                Being Purchased:   ____________________

                                      -8-
<PAGE>

                              EXHIBIT B TO WARRANT
                              --------------------

                              FORM OF WARRANT POWER

         FOR VALUE RECEIVED,  the undersigned does hereby assign and transfer to
____________________________  Federal  Identification  No.__________________,  a
warrant   to   purchase   ______________   shares  of  the   capital   stock  of
FINANCIALCONTENT,   INC.,  a  Delaware   corporation,   represented  by  warrant
certificate No.  ________,  standing in the name of the undersigned on the books
of said  corporation.  The undersigned  does hereby  irrevocably  constitute and
appoint ______________________________________________, attorney to transfer the
warrants of said corporation, with full power of substitution in the premises.

Dated: ___________________       _______________________________________

                                 By: ___________________________________
                                 Its: __________________________________

                                      -9-
<PAGE><PAGE>

                                                                EXHIBIT 10.1 (h)

AMENDMENT TO FIRST AMENDED AND RESTATED FINANCING AGREEMENT AND FIRST AMENDED
                          AND RESTATED LOAN AGREEMENT

         This Amendment to First Amended and Restated Financing Agreement and
First Amended and Restated Loan Agreement (the "Amendment") dated as of January
3, 2002, by and between FIRST UNION NATIONAL BANK, a national banking
association (successor-in-interest to First Union National Bank of Tennessee)
(the "Bondholder"), and ADTRAN, Inc., a Delaware corporation (the "Borrower").

         WHEREAS, the Bondholder, the Borrower and State Industrial Development
Authority (the "Issuer") are parties to a certain First Amended and Restated
Financing Agreement dated as of April 25, 1997 (as amended, modified and/or
supplemented from time to time, the "Existing Financing Agreement"), and the
Borrower and Issuer are parties to a certain First Amended and Restated Loan
Agreement dated as of April 25, 1997 (as amended, modified and/or supplemented
from time to time, the "Existing Loan Agreement"), pursuant to which the Issuer
agreed to issue a certain Amended and Restated Taxable Revenue Bond, Series 1995
(ADTRAN, Inc. Project) in the authorized principal amount of $50,000,000.00 (as
amended, modified and/or supplemented from time to time, the "Bond"), the
proceeds of which the Bondholder agreed to loan to the Borrower, which loan is
evidenced by a certain First Amended and Restated Note dated as of even date
therewith by the Borrower in favor of the Bondholder in the maximum original
principal amount of $50,000,000.00 (as amended, modified and/or supplemented
from time to time, the "Note"); and

         WHEREAS, pursuant to the Existing Financing Agreement, the Issuer
assigned to the Bondholder all of its right, title and interest in and to the
Bond, the Existing Loan Agreement and the other Financing Documents; and

         WHEREAS, the Borrower has requested the Bondholder, and the Bondholder
has agreed, to modify the interest rate applicable to the Note pursuant to the
Existing Financing Agreement, and to modify certain terms and conditions of the
Existing Loan Agreement, all on the terms and conditions contained in this
Amendment.

         NOW, THEREFORE, in consideration of the mutual premises herein
contained, and other good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, the parties hereto, intending to be legally
bound hereby, agree as follows:

         1.    Definitions.

               a.   All defined terms used herein and not defined herein shall
                    have the meanings ascribed thereto in the Existing
                    Financing Agreement.
               b.   As used herein and hereafter as used in the Financing
                    Documents, the term "Financing Agreement", "Amended and
                    Restated Financing Agreement" or any other term referring to

                                      17

<PAGE>

                    the Existing Financing Agreement on or after the date
                    hereof, shall mean the Existing Financing Agreement as
                    amended by this Amendment.
               c.   As used herein and hereafter as used in the Financing
                    Documents, the term "Loan Agreement", "Amended and
                    Restated Loan Agreement" or any other term referring to
                    the Existing Loan Agreement on or after the date hereof,
                    shall mean the Existing Loan Agreement as amended by
                    this Amendment.

         2.    Amendment to Existing Financing Agreement.

               a.   The definition of "Money Market Account-Based Rate"
                    in Section 1.01 of the Financing Agreement is hereby
                    deleted in its entirety and replaced with the following:

                    "Money Market Account-Based Rate shall mean a rate 45
                    basis points in excess of the Money Market Account Rate,
                    as determined on the date of initial issuance of the
                    Amended and Restated Bond and each Interest Payment Date
                    thereafter; provided, however, that commencing on
                    January 3, 2002 the Money Market Account-Based Rate
                    shall mean a fixed rate 20 basis points in excess of the
                    5-year CD rate (as hereinafter defined), as determined
                    on January 3, 2002. For the purposes hereof, "CD Rate",
                    means the rate for U.S. dollar certificates of deposit
                    with a maturity date equal to the number of years set
                    forth above, as published in the Federal Reserve
                    publication H.15 under the caption "CDs (secondary
                    market)" on the date of determination thereof, or if no
                    such rate is reported, then as determined by the Bank
                    from another recognized source of interbank quotation."

         3.    Conditions to Amendment. Unless otherwise agreed to by the
               Bondholder in writing, concurrently with the execution of
               this Amendment, and as a condition of its effectiveness:

               a.   The Borrower shall have duly executed and delivered
                    to the Bondholder that certain Amended and Restated
                    Investment Agreement dated as of the date hereof (the
                    "Investment Agreement");
               b.   The Borrower shall have duly executed and delivered
                    to the Bondholder that certain letter agreement dated as
                    of the date hereof relating to Section 4.03 of the
                    Financing Agreement (the "Letter Agreement");
               c.   The Borrower shall have duly established the
                    certificate of deposit with the Bondholder as required
                    by Section 1 of the Investment Agreement; and
               d.   The Borrower shall have paid any fees due and payable
                    in connection with this Amendment and the other
                    Modification Documents (as hereinafter defined) and all
                    costs and expenses (including, without limitation,
                    reasonable attorneys' fees) incurred by the Bondholder
                    in connection with this Amendment.

         4.    The Borrower's Representations and Warranties. The Borrower
               hereby represents and warrants to the Bondholder as follows:

               a.   All of the representations and warranties made by the
                    Borrower in the Existing Financing Agreement, the
                    Existing Loan Agreement and the other Financing
                    Documents remain true, complete and accurate as of the
                    date hereof and as applied to this Amendment and the
                    Financing Documents, except to the extent that the
                    Borrower has advised the Bondholder otherwise in writing.
               b.   No Event of Default and no default exists, and no
                    event has occurred which with notice or lapse of time or
                    both would constitute a default or an Event of Default
                    under the Existing

                                      18

<PAGE>

                    Financing Agreement or the Existing Loan Agreement,
                    except to the extent that the Borrower has previously
                    advised the Bondholder otherwise in writing and the
                    Bondholder has waived such default in writing, which the
                    Bondholder hereby waives, and the Bondholder
                    acknowledges that it is not aware of any existing
                    defaults under the Financing Documents; and the Borrower
                    has no claims, defenses or set-offs to its obligations
                    under the Financing Documents.
               c.   As of the date hereof, there has been no material
                    adverse change in the financial condition of the
                    Borrower from that reflected in the most recent
                    financial statements of the Borrower delivered to the
                    Bondholder.
               d.   The execution and performance by the Borrower of this
                    Amendment, the Investment Agreement, the Letter
                    Agreement and any other documents and agreements in
                    connection herewith (collectively, the "Modification
                    Documents"), have been duly authorized by all necessary
                    corporate action, will not violate any provision of law
                    applicable to the Borrower or any provision of its
                    charter or by-laws, will not result in a breach of or
                    constitute a default or require any consent under, or
                    result in the creation of any lien, charge or
                    encumbrance upon any property or assets of the Borrower
                    pursuant to any indenture or other agreement or
                    instrument by which the Borrower or any of its
                    properties may be bound or affected. This Amendment and
                    the other Modification Documents constitute legal, valid
                    and binding agreements of the Borrower, enforceable in
                    accordance with their respective terms, except as
                    enforceability may be affected by bankruptcy,
                    insolvency, moratorium or other laws affecting
                    creditors' rights generally.

         5.    Events of Default. A breach of any covenant, representation
               or warranty set forth in this Amendment or any other
               Modification Document by the Borrower shall constitute an
               Event of Default under the Financing Agreement and the Loan
               Agreement.
         6.    Effect of Amendment. Except as expressly amended and
               supplemented hereby, the Existing Financing Agreement, the
               Existing loan Agreement, the Bond and all of the Financing
               Documents in effect as of the date hereof shall remain in full
               force and effect, unmodified, and are enforceable against the
               Borrower in accordance with their respective terms.
         7.    Further Modifications. This Amendment contains all of the
               modifications to the Existing Financing Agreement and the
               Existing Loan Agreement, and no further or other modifications
               to the Existing Financing Agreement or the Existing Loan
               Agreement shall be effective unless in writing executed by the
               Bondholder and the Borrower.
         8.    Binding Effect. This Amendment shall extend to and bind the
               parties hereto and their respective successors and permitted
               assigns.
         9.    Governing Law. This Amendment shall be governed by and
               construed in accordance with the laws of the jurisdiction
               applicable pursuant to the Loan Agreement.
         10.   Counterparts. This Amendment may be executed in any number
               of counterparts, all of which taken together shall constitute
               one and the same document.

                                      19

<PAGE>

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to First
Amended and Restated Financing Agreement and First Amended and Restated Loan
Agreement to be duly executed as of the date first above written.

                                   FIRST UNION NATIONAL BANK

                                   By: /s/ Robyn G. Beh
                                   --------------------
                                   Robyn G. Beh
                                   Vice President

ATTEST:                            ADTRAN, Inc.

/s/ Luzma Doughty                  By: /s/ Howard A. Thrailkill
-----------------                  ----------------------------
Luzma Doughty                      Howard A. Thrailkill
Executive Assistant                President

                                      20

<PAGE>

                           CONSENT OF ORIGINAL ISSUER

The State Industrial Development Authority hereby consents to the foregoing
Amendment to the First Amended and Restated Financing Agreement and First
Amended and Restated Loan Agreement dated as of January 2, 2002.

         Dated:  January 2, 2002.

                                                 STATE INDUSTRIAL DEVELOPMENT
                                                       AUTHORITY

                                                 By:/s/ Henry C. Mabry, III
                                                 ---------------------------
                                                 Henry C. Mabry, III
                                                 Secretary

                                      21

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