Document:

Amended and Restated 1995 Directors Stock Plan

  EXHIBIT 10.3(b)
 ADTRAN,
INC.
 AMENDED AND RESTATED
1995 DIRECTORS STOCK OPTION PLAN
 ARTICLE 1
 Purpose
 1.1               General Purpose. The purpose of this Plan is to further the growth and development
of the Company by encouraging Directors who are not employees of the Company to obtain a proprietary interest in the Company by owning its stock. The Company intends that the Plan will provide such persons with an added incentive to continue to
serve as Directors and will stimulate their efforts in promoting the growth, efficiency and profitability of the Company. The Company also intends that the Plan will afford the Company a means of attracting persons of outstanding quality to service
on the Board and on the board of directors of parent and subsidiary corporations of the Company.
 1.2               Intended Tax Effects of Options. It is intended that the tax effects of any NQSO (as hereinafter defined)
granted hereunder should be determined under Code §83.
 ARTICLE 2
 Definitions
 The following words and phrases as used in this Plan shall have the meanings set forth in this Article
unless a different meaning is clearly required by the context:
 2.1               1933 Act shall mean the Securities Act of 1933, as amended.
 2.2               1934 Act shall mean the Securities
Exchange Act of 1934, as amended.
 2.3               Beneficiary shall mean, with respect to an Optionee, the Person or Persons to whom the Optionee’s
Option shall be transferred upon the Optionee’s death (i.e., the Optionee’s Beneficiary).
 (a)    Designation of Beneficiary. An Optionee’s Beneficiary shall be the Person who is last designated in writing by the
Optionee as such Optionee’s Beneficiary hereunder. An Optionee shall designate his or her original Beneficiary in writing on his or her Option Agreement. Any subsequent modification of the Optionee’s Beneficiary shall be in a written
executed and notarized letter addressed to the Company and shall be effective when it is received and accepted by the Committee, determined in the Committee’s sole discretion.
 (b)    No Designated Beneficiary. If, at any time, no Beneficiary has
been validly designated by an Optionee, or the Beneficiary designated by the Optionee is no longer living or in existence at the time of the Optionee’s death, then the Optionee’s Beneficiary
shall be deemed to be the individual or individuals in the first of the following classes of individuals with one or members of such class surviving or in existence as of the Optionee’s death, and in the absence thereof, the Optionee’s
estate: the Optionee’s surviving spouse; or the Optionee’s then living lineal descendants, per stirpes.
 (c)    Designation of Multiple Beneficiaries. An Optionee may, consistent with subsection (a) above, designate more than one Person
as a Beneficiary if, for each such Beneficiary, the Optionee also designates a percentage of the Optionee’s Options to be transferred to such Beneficiary upon the Optionee’s death. Unless otherwise specified by the Optionee, any
designation by the Optionee of multiple Beneficiaries shall be interpreted as a designation by the Optionee that each such Beneficiary (to the extent 
 

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  such Beneficiary is alive or in existence as of the Optionee’s date of death) should be entitled to an equal percentage of the
Optionee’s Options. Each Beneficiary shall have complete and non-joint rights with respect to the portion of an Optionee’s Options to be transferred to such Beneficiary upon the Optionee’s death.
 (d)    Contingent Beneficiaries. An Optionee may designate one or more
contingent Beneficiaries to receive all or a portion of the Optionee’s Option in the event that one or more of the Optionee’s original Beneficiaries should predecease the Optionee; otherwise, in the event that one or more Beneficiaries
predeceases the Optionee, then the individual or individuals specified in subsection (b) above shall take the place of each such deceased Optionee’s Beneficiary. 
 2.4               Board shall mean the Board of Directors of the
Company.
 2.5               Cause shall mean an act or acts by an individual involving personal dishonesty, incompetence, willful misconduct, moral turpitude, intentional failure to perform stated duties, willful violation of any law, rule or
regulation (other than traffic violations or similar offenses), the use for profit or disclosure to unauthorized persons of confidential information or trade secrets of the Company, the breach of any contract with the Company, the unlawful trading
in the securities of the Company or of another corporation based on information gained as a result of the performance of services for the Company, a felony conviction or the failure to contest prosecution for a felony, embezzlement, fraud, deceit or
civil rights violations, any of which acts causing the Company or any subsidiary liability or loss, as determined by the Committee in its sole discretion.
 2.6               Change of Control shall mean the occurrence of any one of the following
events:
 (a)    Acquisition By Person of Substantial Percentage.
The acquisition by a Person (including “affiliates” and “associates” of such Person, but excluding the Company, any “parent” or “subsidiary” of the Company, or any employee benefit plan
of the Company or of any “parent” or “subsidiary” of the Company) of a sufficient number of shares of the Common Stock, or securities convertible into the Common Stock, and whether through direct acquisition of shares or by
merger, consolidation, share exchange, reclassification of securities or recapitalization of or involving the Company or any “parent” or “subsidiary” of the Company, to constitute the Person the actual or beneficial owner of
greater than 50% of the Common Stock; or
 (b)    Disposition of Assets.
Any sale, lease, transfer, exchange, mortgage, pledge or other disposition, in one transaction or a series of transactions, of all or substantially all of the assets of the Company or of any “subsidiary” of the
Company to a Person described in subsection (a) above.
 For purposes of this Section, the terms “affiliate,” “associate,” “parent” and
“subsidiary” shall have the respective meanings ascribed to such terms in Rule 12b-2 under Section 12 of the 1934 Act.
 2.7               Code shall mean the Internal Revenue Code of 1986, as amended.
 2.8               Committee shall mean the committee
appointed by the Board to administer and interpret the Plan in accordance with Article 3 below.
 2.9               Common Stock shall mean the common stock, par value $0.01 per share, of the Company.
 2.10             Company shall mean
ADTRAN, Inc., and shall also mean any parent or subsidiary corporation of ADTRAN, Inc. unless the context clearly indicates otherwise.
 2.11             Director shall mean an individual who is serving as a member of the Board (i.e., a director of the Company) or who is serving as a member of the board of directors of a parent or subsidiary corporation of the Company.
 2.12             Disability shall mean, with respect to an individual, the total and
permanent disability of such individual as determined by the Committee in its sole discretion.
 2.13             Effective Date shall mean October 31, 1995, subject to shareholder approval. See Article 9 herein.
 2.14             Fair Market Value of the Common Stock as of a date of determination shall mean the following:
 

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  (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 1934 Act) or on The Nasdaq National Market 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 National Market System on 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 on 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 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 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 the Common Stock on the most recent date before the date of determination.
 (c)    Stock Not Listed. If the Common Stock is not listed on a national securities exchange
or on the 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 from all relevant available facts, which may include the average of the closing
bid and ask prices reflected in the over-the-counter market on a date within a reasonable period either before or after the date of determination or opinions of independent experts as to value and may take into account any recent sales and purchases
of such Common Stock to the extent they are representative.
 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.
 2.15             NQSO shall mean an option to which Code §421 (relating generally to certain incentive stock options and other
options) does not apply.
 2.16             Option shall mean NQSO’s granted to individuals pursuant to the terms and provisions of this Plan.
 2.17             Option Agreement shall
mean a written agreement, executed and dated by the Company and an Optionee, evidencing an Option granted under the terms and provisions of this Plan, setting forth the terms and conditions of such Option, and specifying the name of the Optionee and
the number of shares of stock subject to such Option.
 2.18             Option Price shall mean the purchase price of the shares of Common Stock underlying an Option.
 2.19             Optionee shall mean an
individual who is granted an Option pursuant to the terms and provisions of this Plan. 
 2.20             Person shall mean any individual, organization, corporation, partnership, trust or other entity.
 2.21             Plan shall mean this
ADTRAN, Inc. 1995 Directors Stock Option Plan.
 ARTICLE 3
 Administration
 3.1               General Administration. The Plan shall be administered and interpreted by the Committee. Subject to the express provisions of the Plan, the Committee shall have authority (to the extent that such authority does not
disqualify the Plan from being a “formula plan” within the meaning of paragraph (c)(2)(ii) of Rule 16b-3 of
 

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  the 1934 Act) to interpret the Plan, to prescribe, amend and rescind rules and regulations relating to the Plan, to determine the terms and provisions of the
Option Agreements by which Options 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.
 3.2               Appointment. The Board shall appoint the Committee from among its 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. The Committee at all times shall be composed of two or more directors.
 3.3               Organization. The Committee may select
one of its members as its chairman and shall hold its meetings at such times, in such manner 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 the meeting next succeeding.
 3.4               Indemnification. In addition to such other rights of indemnification as they have as directors or as
members of the Committee, the members of the Committee, to the extent permitted by applicable law, shall be indemnified by the Company against reasonable expenses (including, without limitation, attorneys’ 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
Options granted 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 or certificate of incorporation or the bylaws of the
Company relating to indemnification of directors) or paid by them in satisfaction of a judgment in any such action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such action, suit or proceeding that such
Committee member or members did not act in good faith and in a manner he or they reasonably believed to be in or not opposed to the best interest of the Company.
 ARTICLE 4
 Stock
 The stock subject to the Options
and other provisions of the Plan shall be authorized but unissued or reacquired shares of Common Stock. Subject to readjustment in accordance with the provisions of Article 7, the total number of shares of Common Stock for which Options may be
granted to persons participating in the Plan shall not exceed in the aggregate 200,000 shares of Common Stock. Notwithstanding the foregoing, shares of Common Stock allocable to the unexercised portion of any expired or terminated Option again may
become subject to Options under the Plan.
 ARTICLE 5
 Eligibility to Receive and Grant of Options
 5.1               Individuals Eligible for Grants of Options. The individuals eligible to receive Options hereunder shall
be solely those individuals who are Directors and who are not employees of the Company or any parent or subsidiary corporation of the Company. Such Directors shall receive Options hereunder in accordance with the provisions of Section 5.2
below.
 5.2               Grant of
Options. Options shall be granted to those Directors who are eligible under Section 5.1 above in accordance with the following formulas:
 (a)    Option Upon Initially Becoming a Director. Upon initially becoming a Director, an individual shall, subject to subsection (c)
below, be granted an Option to purchase 10,000 shares of Common Stock, with such Option subject to the provisions of Article 6 below. The Options granted under this subsection (a) shall be evidenced by the Option Agreement shown in Exhibit A. The
Options granted under this subsection (a) shall not be granted to a Director who has previously served as a Director and who is again becoming a Director, but shall only be granted upon an individual’s initially becoming a Director.
 

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  (b)    Option Upon Commencement of
Term. As of December 31 of each calendar year following the calendar year in which a Director receives a grant of Options under subsection (a) above, an individual shall, if such individual is a Director as of such date and
subject to subsections (c) and (d) below, be granted an Option to purchase 5,000 shares of Common Stock, with such Option subject to the provisions of Article 6 below. Options granted under this subsection (b) shall be evidenced by the Option
Agreement shown in Exhibit B.
 (c)    Transitional Rules. No individual who is serving as a Director as of the Effective Date of this Plan shall be entitled to any Options under subsection (b) above until the December 31 next following the Effective Date. Each Director as of the Effective Date shall
be granted Options under the terms and provisions of subsection (a) above as of the Effective Date as if such Director had initially become a Director on the Effective Date. Options granted under this subsection (c) shall be evidenced by the Option
Agreement shown in Exhibit A.
 (d)    Rules Against Double Granting of
Options for Simultaneous Service. Notwithstanding any provision of this Section to the contrary, an individual shall not be granted an Option to purchase more than 2,000 shares as of any December 31 under the provisions of
subsection (b) above.
 ARTICLE 6
 Terms and Conditions of
Options
 Options granted hereunder and Option Agreements shall comply with and be subject to the following terms and conditions:
 6.1               Requirement of Option
Agreement. Upon the grant of an Option hereunder, the Committee shall prepare (or cause to be prepared) an Option Agreement. The Committee shall present such Option Agreement to the Optionee. Upon execution of such Option
Agreement by the Optionee, such Option shall be deemed to have been granted effective as of the date of grant. The failure of the Optionee to execute the Option Agreement within 30 days after the date of the receipt of same shall render the Option
Agreement and the underlying Option null and void ab initio.
 6.2               Optionee and Number of Shares. Each Option Agreement shall state the name of the Optionee and the total
number of shares of the Common Stock to which it pertains, the Option Price, the Beneficiary of the Optionee and the date as of which the Option was granted under this Plan.
 6.3               Vesting. Each Option shall first become exercisable
(i.e., vested) with respect to the shares subject to such Option as of the first anniversary of the date the Option is granted. Prior to said date, the Option shall be unexercisable in its entirety.
Notwithstanding the foregoing, all Options granted to an Optionee shall become immediately vested and exercisable for 100% of the number of shares subject to the Options upon the Optionee’s becoming Disabled (within the meaning of Section 2.12
hereof) or upon his death or upon a Change in Control. Other than as provided in the preceding sentences, if an Optionee ceases to be a Director of the Company, his rights with regard to all non-vested Options shall cease immediately.
 6.4               Option Price. The Option Price of the shares of Common Stock underlying each Option shall be the Fair Market Value of the Common Stock on the date the Option is granted. Upon execution of an Option Agreement by both the Company and Optionee, the date as
of which the Option was granted under this Plan as noted in the Option Agreement shall be considered the date on which such Option is granted.
 6.5               Terms of Options. Terms of Options granted under the Plan shall commence on the date of grant and shall
expire ten years from the date the Option is granted. No Option shall be granted hereunder after ten years from the earlier of the date the Plan is approved by the shareholders, or the date the Plan is adopted by the Board. 
 6.6               Terms of Exercise.
The exercise of an Option may be for less than the full number of shares of Common Stock subject to such Option, but such exercise shall not be made for less than (i) 100 shares or (ii) the 
 

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  total remaining shares subject to the Option, if such total is less than 100 shares. Subject to the other restrictions on exercise set forth herein, the
unexercised portion of an Option may be exercised at a later date by the Optionee. 
 6.7               Method of Exercise. All Options granted hereunder shall be exercised by written notice directed to the
Secretary of the Company at its principal place of business or to such other person as the Committee may direct. Each notice of exercise shall identify the Option which the Optionee is exercising (in whole or in part) and shall be accompanied by
payment of the Option Price for the number of shares specified in such notice and by any documents required by Section 8.1. The Company shall make delivery of such shares within a reasonable period of time; 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 1933 Act and causing such registration statement to become effective) with respect to the shares specified in such notice before
the issuance thereof, then the date of delivery of such shares shall be extended for the period necessary to take such action.
 6.8               Medium and Time of Payment.
 (a)    The Option Price shall be payable upon the exercise of the Option in an amount equal to the number of shares then being purchased
times the per share Option Price. Payment, at the election of the Optionee (or his Beneficiary as provided in subsection (c) of Section 6.9), shall be (A) in cash; (B) by delivery to the Company of a certificate or certificates for shares of the
Common Stock duly endorsed for transfer to the Company with signature guaranteed by a member firm of a national stock exchange or by a national or state bank or a federally chartered thrift institution (or guaranteed or notarized in such other
manner as the Committee may require) or by instructing the Company to retain shares of Common Stock upon the exercise of the Option with a Fair Market Value equal to the exercise price as payment; or (C) by a combination of (A) and (B). 

(b)    If the Optionee delivers Common Stock with a value that is less than the total
Option Price, then such Optionee shall pay the balance of the total Option Price in cash, other property or services, as provided in subsection (a) above.
 6.9               Effect of Termination of Service, Disability or Death. Except as provided in
subsections (a), (b) and (c) below, no Option shall be exercisable unless the Optionee thereof shall have been a Director from the date of the granting of the Option until the date of exercise.
 (a)    Termination of Service. In the event an Optionee ceases to be a Director for any
reason other than death or Disability, any Option or unexercised portion thereof granted to him shall terminate on and shall not be exercisable after the earliest to occur of  the expiration date of the Option,  three months after the date
the Optionee ceases to be a Director or the date on which the Company gives notice to such Optionee of termination of his service as a Director if service is terminated by the Company or by its shareholders for Cause (an Optionee’s
resignation in anticipation of termination of service by the Company or by its shareholders for Cause shall constitute a notice of termination by the Company). Notwithstanding the foregoing, in the event that an Optionee’s service as a Director
terminates for a reason other than death or Disability at any time after a Change of Control, the term of all Options of that Optionee shall be extended through the end of the three-month period immediately following the date of such termination of
service. Prior to the earlier of the dates specified in the preceding sentences of this subsection (a), the Option shall be exercisable only in accordance with its terms and only for the number of shares exercisable on the date of termination of
service as a Director.
 (b)    Disability. Upon the
termination of an Optionee’s service as a Director due to Disability, any Option or unexercised portion thereof granted to him which is otherwise exercisable shall terminate on and shall not be exercisable after the earlier to occur of the
expiration date of such Option, or one year after the date on which such Optionee ceases to be a Director due to Disability. Prior to the earlier of such date, such Option shall be exercisable only in accordance with its terms and only for the
number of shares exercisable on the date such Optionee’s service as a Director ceases due to Disability.
 (c)    Death. In the event of the death of the Optionee  while he is a Director,  within three months after the date on which such Optionee’s service as a Director
is terminated (for a reason other than
 

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  Cause) as provided in subsection (a) above, or within one year after the date on which such Optionee’s service as a Director
terminated due to his Disability, any Option or unexercised portion thereof granted to him which is otherwise exercisable may be exercised by the Optionee’s Beneficiary at any time prior to the expiration of one year from the date of death of
such Optionee, but in no event later than the date of expiration of the option period. Such exercise shall be effected pursuant to the terms of this Section as if such Beneficiary is the named Optionee.
 6.10             Restrictions on Transfer and Exercise of Options.
No Option shall be assignable or transferable by the Optionee except by transfer to a Beneficiary upon the death of the Optionee, and any purported transfer (other than as excepted above) shall be null and void. After the death of an Optionee and
upon the death of the Optionee’s Beneficiary, an Option shall be transferred only by will or by the laws of descent and distribution. During the lifetime of an Optionee, the Option shall be exercisable only by him; provided, however, that in
the event the Optionee is incapacitated and unable to exercise Options, such Options may be exercised by such Optionee’s legal guardian, legal representative, fiduciary or other representative whom the Committee deems appropriate based on
applicable facts and circumstances. 
 6.11             Rights as a Shareholder. An Optionee shall have no rights as a shareholder with respect to shares covered by his Option until date of the issuance of the shares to him and only after the Option Price of such shares is
fully paid. Unless specified in Article 7, no adjustment will be made for dividends or other rights for which the record date is prior to the date of such issuance.
 6.12             No Obligation to Exercise Option. The granting of an Option shall impose no obligation upon
the Optionee to exercise such Option.
 ARTICLE 7
 Adjustments
Upon Changes in Capitalization
 7.1               Recapitalization. In the event that the outstanding shares of the Common Stock of the Company are
hereafter increased or decreased or changed into or exchanged for a different number or kind of shares or other securities of the Company by reason of a recapitalization, reclassification, stock split, combination of shares or dividend payable in
shares of the Common Stock, the following rules shall apply:
 (a)    The
Committee shall make an appropriate adjustment in the number and kind of shares available for the granting of Options under the Plan, and in the number and kind of shares granted under Section 5.2.
 (b)    The Committee also shall make an appropriate adjustment in the number and kind of shares as to which outstanding
Options, or portions thereof then unexercised, shall be exercisable; any such adjustment in any outstanding Options shall be made without change in the total price applicable to the unexercised portion of such Option and with a corresponding
adjustment in the Option Price per share. No fractional shares shall be issued or optioned in making the foregoing adjustments, and the number of shares available under the Plan or the number of shares subject to any outstanding Options shall be the
next lower number of shares, rounding all fractions downward.
 (c)    If any
rights or warrants to subscribe for additional shares are given pro rata to holders of outstanding shares of the class or classes of stock then set aside for the Plan, each Optionee shall be entitled to
the same rights or warrants on the same basis as holders of the outstanding shares with respect to such portion of his Option as is exercised on or prior to the record date for determining shareholders entitled to receive or exercise such rights or
warrants.
 7.2               Reorganization. Subject to any required action by the shareholders, if the Company shall be a party to any reorganization involving merger, consolidation, acquisition of the stock or acquisition of the assets of the
Company which does not constitute a Change of Control, and if the agreement memorializing such reorganization so provides, any Option granted but not yet exercised shall pertain to and apply, with appropriate
 

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  adjustment as determined by the Committee, to the securities of the resulting corporation to which a holder of the number of shares of the Common Stock
subject to such Option would have been entitled. If such agreement does not so provide, any or all Options granted hereunder shall become immediately nonforfeitable and fully exercisable or vested (to the extent permitted under federal or state
securities laws) and are to be terminated after giving at least 30 days’ notice to the Optionees to whom such Options have been granted.
 7.3               Dissolution and Liquidation. If the Board adopts a plan of dissolution and liquidation that is approved
by the shareholders of the Company, the Committee shall give each Optionee written notice of such event at least ten days prior to its effective date, and the rights of all Optionees shall become immediately nonforfeitable and fully exercisable or
vested (to the extent permitted under federal or state securities laws).
 7.4               Limits on Adjustments. Any issuance by the Company of stock of any class, 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 Option, except as specifically provided otherwise in this Article.
The grant of Options pursuant to the Plan shall not affect in any way the right or power 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. All adjustments the Committee makes under this Article shall be conclusive.
 ARTICLE 8
 Agreement by Optionee and Securities Registration
 8.1               Agreement. If, in the opinion of counsel to the Company,
such action is necessary or desirable, no Options shall be granted to any Optionee, and no Option shall be exercisable, unless, at the time of grant or exercise, as applicable, such Optionee (i) represents and warrants that he will acquire the
Common Stock for investment only and not for purposes of resale or distribution, and (ii) makes such further representations and warranties as are deemed necessary or desirable by counsel to the Company with regard to holding and resale of the
Common Stock. The Optionee shall, upon the request of the Committee, execute and deliver to the Company an agreement or affidavit to such effect. Should the Committee have reasonable cause to believe that such Optionee did not execute such agreement
or affidavit in good faith, the Company shall not be bound by the grant of the Option or by the exercise of the Option. All certificates representing shares of Common Stock issued pursuant to the Plan shall be marked with the following restrictive
legend or similar legend, if such marking, in the opinion of counsel to the Company, is necessary or desirable:
 The shares by this certificate [have not been
registered under the Securities Act of 1933, as amended, or the securities laws of any state and] are held by an “affiliate” (as such term is defined in Rule 144 promulgated by the Securities and Exchange Commission under the Securities
Act of 1933, as amended) of the Corporation. Accordingly, these shares may not be sold, hypothecated, pledged or otherwise transferred except (i) pursuant to an effective registration statement under the Securities Act of 1933, as amended, and any
applicable securities laws or regulations of any state with respect to such shares, (ii) in accordance with Securities and Exchange Commission rule 144, or (iii) upon the issuance to the Corporation of a favorable opinion of counsel or the
submission to the Corporation of such other evidence as may be satisfactory to the Corporation that such proposed sale, assignment, encumbrance or other transfer will not be in violation of the Securities Act of 1933, as amended, or any applicable
securities laws of any state or any rules or regulations thereunder. Any attempted transfer of this certificate or the shares represented hereby which is in violation of the preceeding restrictions will not be recognized by the Corporation, nor will
any transferee by recognized as the owner thereof by the Corporation.
 If the Common Stock is (A) held by an Optionee who ceases to be an “affiliate,” as that term is
defined in Rule 144 of the 1933 Act, or (B) registered under the 1933 Act and all applicable state securities laws and regulations as provided in Section 8.2, the Committee, in its discretion and with the advice of counsel, may dispense with or
authorize the removal of the restrictive legend set forth above or the portion thereof which is inapplicable.
 

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  8.2               Registration. In the event that the Company in its sole discretion shall deem it necessary or advisable to register, under the 1933 Act or any state securities laws or regulations, any shares with respect to which
Options have been granted hereunder, then the Company shall take such action at its own expense before delivery of the certificates representing such shares to an Optionee. In such event, and if the shares of Common Stock of the Company shall be
listed on any national securities exchange or on The Nasdaq National Market at the time of the exercise of any Option, the Company shall make prompt application at its own expense for the listing on such stock exchange or The Nasdaq National Market
of the shares of Common Stock to be issued.
 ARTICLE 9
 Effective Date
 The Plan shall be effective as of the Effective Date, and no Options shall be granted hereunder prior to said date. Adoption of the
Plan shall be approved by the shareholders of the Company at the earlier of (i) the annual meeting of the shareholders of the Company which immediately follows the date of the first grant or award of Options hereunder, or (ii) 12 months after the
adoption of the Plan by the Board. 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 on the Plan, 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, 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 1934 Act. Failure to obtain such approval shall render the Plan and any Options granted hereunder null and void ab initio.
 ARTICLE 10
 Amendment and Termination
 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 periods or to terminate the Plan in whole or in
part. In the event of any such action, 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.
 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 Options. No addition, amendment,
modification, repeal, suspension or termination shall adversely affect, in any way, the rights of the Optionees who have outstanding Options without the consent of such Optionees;
 (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 such modification or amendment would cause the applicable portions of the Plan to fail to qualify as an ISO plan pursuant to Code §422, such modification or amendment would
materially increase the benefits accruing to participants under the Plan, such modification or amendment would materially increase the number of securities which may be issued under the Plan, or such modification or amendment would materially modify
the requirements as to eligibility for participation in the Plan. Clauses (ii), (iii) and (iv) of the preceding sentence shall be interpreted in accordance with the provisions of paragraph (b)(2) of Rule 16b-3 of the 1934 Act. 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,
 

9

  that for modifications described in clauses (ii), (iii) and (iv) 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 1934 Act as required by paragraph (b)(2) of Rule 16b-3 of the 1934 Act; and
 (c)    Six Month Restriction on Amendments. No provision of this Plan may
be modified or amended more than once every six months, other than to comport with changes in the Code, the Employee Retirement Income Security Act of 1974, as amended, or the rules and regulations promulgated thereunder. The preceding sentence
shall be interpreted in accordance with the provisions of paragraph (c)(ii)(B) of Rule 16b-3 of the 1934 Act.
 ARTICLE 11
 Miscellaneous Provisions
 11.1             Application of Funds. The proceeds received by the Company from the sale of the Common Stock subject to the Options
granted hereunder will be used for general corporate purposes.
 11.2             Notices. All notices or other communications by an Optionee to the Committee pursuant to or in connection with the
Plan shall be deemed to have been duly given when received in the form specified by the Committee at the location, or by the person, designated by the Committee for the receipt thereof.
 11.3             Term of Plan. Subject to the terms of Article 10, the Plan shall
terminate upon the later of (i) the complete exercise or lapse of the last outstanding Option, or (ii) the last date upon which Options may be granted hereunder.
 11.4             Compliance with Rule 16b-3. This Plan is intended to be in compliance with the requirements
of Rule 16b-3 as promulgated under Section 16 of the 1934 Act.
 11.5             Governing Law. The Plan shall be governed by and construed in accordance with the laws of the State of
Alabama.
 11.6             Additional Provisions By
Committee. The Option Agreements authorized under the Plan may contain such other provisions, including, without limitation, restrictions upon the exercise of an Option, as the Committee shall deem advisable; provided, such
authority may not disqualify the Plan from being a “formula plan” within the meaning of paragraph (c)(2)(ii) of Rule 16b-3 of the 1934 Act.
 11.7             Plan Document Controls. In the event of any conflict between the provisions of an Option
Agreement and the Plan, the Plan shall control.
 11.8             Gender and Number. Wherever applicable, the masculine pronoun shall include the feminine pronoun, and the singular
shall include the plural.
 11.9             Headings. The titles in this Plan are inserted for convenience of reference; they constitute no part of the Plan and are not to be considered in the construction hereof.
 11.10           Legal References. Any references in this Plan to a provision
of law which is, subsequent to the Effective Date of this Plan, revised, modified, finalized or redesignated, shall automatically be deemed a reference to such revised, modified, finalized or redesignated provision of law.
 11.11           No Rights to Perform Services. Nothing
contained in the Plan, or any modification thereof, shall be construed to give any individual any rights to perform services for the Company or any parent or subsidiary corporation of the Company.
 

10

  11.12           Unfunded
Arrangement. The Plan shall not be funded, and except for reserving a sufficient number of authorized shares to the extent required by law to meet the requirements of the Plan, the Company shall not be required to establish
any special or separate fund or to make any other segregation of assets to assure the payment of any grant under the Plan.
 ADOPTED BY BOARD OF DIRECTORS
EFFECTIVE AS OF OCTOBER 31, 1995
 APPROVED BY SHAREHOLDERS ON APRIL 19, 1996
 FIRST AMENDMENT ADOPTED BY BOARD OF DIRECTORS
EFFECTIVE AS OF APRIL 20, 1999
 SECOND
AMENDMENT ADOPTED BY BOARD OF DIRECTORS
EFFECTIVE AS OF JULY 15, 1999
 AMENDED AND RESTATED PLAN ADOPTED BY BOARD OF
DIRECTORS
EFFECTIVE AS OF JANUARY 13, 2000
 FIRST AMENDMENT TO AMENDED AND RESTATED PLAN
ADOPTED BY BOARD OF DIRECTORS
EFFECTIVE AS OF DECEMBER 20, 2001
 SECOND AMENDMENT TO AMENDED AND RESTATED
PLAN
ADOPTED BY THE BOARD OF DIRECTORS
EFFECTIVE AS OF MARCH 18, 2003
 

11

  FIRST AMENDMENT TO THE
ADTRAN, INC. AMENDED AND RESTATED
1995 DIRECTORS
STOCK OPTION PLAN
 This FIRST AMENDMENT to the ADTRAN, INC. AMENDED AND RESTATED 1995 DIRECTORS STOCK OPTION PLAN (the “Plan”), made by ADTRAN,
Inc. (the “Company”) is effective as of December 20, 2001;
 W I T N E S S E T H:
 WHEREAS, the Company maintains the Plan for the benefit of its non-employee directors;
 WHEREAS, the Company implemented the Plan to encourage its non-employee directors to obtain a proprietary interest in the Company, to provide those directors with an added incentive to continue service as directors and
to stimulate their efforts in promoting the growth, efficiency and profitability of the Company;
 WHEREAS, due to market
fluctuations, the exercise prices of many of the options granted to non-employee directors under the Plan are not significantly higher than current value, and the optionees holding those options are unlikely to be motivated by the opportunities
generally presented by the grant of stock options;
 WHEREAS, the Company wishes to recapture the value of stock options for its
non-employee directors in order to further the purposes of the Plan;
 WHEREAS, the Company intends to implement a program to offer
its non-employee directors (as well as others) the opportunity to surrender certain previously granted stock options and receive a smaller number of new options granted under the Plan and the Company’s other stock option plans at current market
prices;
 WHEREAS, in order to permit the Company’s non-employee directors to participate in the option exchange offer, the
Company wishes to amend the Plan at this time;
 WHEREAS, Article 10 of the Plan allows the Board of Directors to amend the Plan at
any time, subject to shareholder approval of any amendment which would materially increase the benefits accruing to participants under the Plan, and certain other restrictions not applicable in this instance; and
 WHEREAS, the Board of Directors, after consulting with counsel, determined this First Amendment to the Plan, does not materially increase the benefits accruing to participants under the Plan;
 NOW, THEREFORE, the
Company hereby amends the Plan as follows:
 1.             A new Section
2.13A shall be added between Sections 2.13 and 2.14 of the Plan, to read as follows:
 “2.13A        Exchange Offer shall mean that certain Offer to Exchange dated January 28, 2002, as set forth in the Schedule TO to be filed with the
Securities and Exchange Commission under Rule 13e-4 of the 1934 Act.”
 2.             The first sentence of Section 5.2(b) of the Plan shall be amended to read as follows:
 “Option Upon Commencement of Term. Except as provided in Section 5.3(a) below, as of December 31 of each calendar year following the calendar year
in which a Director receives a grant of Options under subsection (a) above, an individual shall, if such individual is a Director as of such date and subject to subsections (c) and (d) below, be granted an Option to purchase 5,000 shares of Common
Stock, with such Option subject to the provisions of Article 6 below.”
 3.             To conform Section 5.2(d) of the Plan to the amendments effective as of April 20, 1999, Section 5.2(d) shall be amended by striking
“2,000” and by substituting “5,000” in lieu thereof.
 

12

  4.             A new Section 5.3 shall be added to
the Plan as follows:
 “5.3             Option
Exchange. Notwithstanding anything in this Plan to the contrary, each individual who is a Director as of December 31, 2001 shall receive a grant of Options pursuant to subsection (a) below, and may be eligible for a grant of
Options pursuant to subsection (b) below under the terms of the Exchange Offer:
 (a)    Elimination of 2001 Grants. No grants shall be made to Directors under Section 5.2(b) above as of December 31, 2001. Any individual who would otherwise have received a
grant under Section 5.2(b) shall instead receive a grant as follows: (i) for any Director who elects to participate in the Exchange Offer, as of the date that such Director receives a grant of Options under subsection (b) below, such individual
shall, if such individual is a Director as of such date, be granted an Option to purchase 5,000 shares of Common Stock, with such Option subject to the provisions of Article 6 below; or (ii) for any Director who elects not to participate in the
Exchange Offer, as of the date that is one business day after termination of the Exchange Offer, such individual shall, if such individual is a Director as of such date, be granted an Option to purchase 5,000 shares of Common Stock, with such Option
subject to the provisions of Article 6 below. No Director shall be granted an Option to purchase more than 5,000 shares under the provisions of this subsection.             
 (b)    Option Grants. As of a date that is within the 30-day period beginning on the first business day which is at least six months and two days after the date on which Options
are cancelled under the Exchange Offer, for each eligible Option that a Director tenders and the Company accepts for exchange pursuant to the terms of the Exchange Offer, such Director shall, if the individual is a Director as of such date, be
granted an Option to purchase a number of shares of Common Stock equal to three shares for every four shares that were subject to the tendered Option plus additional shares equal to the remaining number of shares if the number tendered is not
divisible by four, as provided under the terms of the Exchange Offer. Such grant shall be subject to the provisions of Article 6 below.” 
 5.             The first sentence of Section 6.3 shall be amended in its entirety as follows:
 “Each Option shall first become exercisable with respect to the shares subject to such Option as of the first anniversary of the date the Option is granted; provided, any Option granted under Section 5.3(b) as a
result of the Exchange Offer shall be 100% exercisable immediately upon the date of grant.”
 6.             Section 6.5 shall be amended in its entirety as follows:
 “6.5             Terms of Options. Terms of Options granted under the Plan shall commence on the date of
grant and shall expire ten years from the date the Option is granted. Notwithstanding the foregoing, the term of any Option granted under Section 5.3(b) as a result of the Exchange Offer shall commence on the date of grant and shall expire on the
expiration date of the Option that was tendered in exchange for such Option pursuant to the terms of the Exchange Offer. No Option shall be granted hereunder after ten years from the earlier of (a) the date the Plan is approved by the shareholders,
or (b) the date the Plan is adopted by the Board.”
 7.             Section 10.2(b) shall be amended in its entirety as follows: 
 “(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 (i) such modification or amendment would
materially increase the benefits accruing to participants under the Plan, (ii) such modification or amendment would materially increase the number of securities which may be issued under the Plan, or (iii) such modification or amendment would
materially modify the requirements as to eligibility for participation in the Plan. Clauses (i), (ii) and (iii) of the preceding sentence shall be interpreted in accordance with the provisions of paragraph (b)(2) of Rule 16b-3 promulgated under the
1934 Act, as such rule was in effect on August 14, 1996. 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 
 

13

  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 (i), (ii) and (iii) 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 1934 Act as required by paragraph (b)(2) of Rule 16b-3 of the 1934 Act; and”
 8.             Section 10.2(c) shall be deleted.
 9.             All other provisions of the Plan not inconsistent herewith shall remain in full force and effect.
 IN WITNESS WHEREOF, the Company has caused this First Amendment to the Amended and Restated Plan to be executed by its duly authorized officer.
   

	  
 	  
 	 ADTRAN, INC.
 
	 
 
 
 	  
 	 By: 
 	 
 /s/ JAMES E. MATTHEWS
 
	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	 James E. Matthews
 Senior Vice President – Finance and Administration
 and Chief Financial Officer
 

  
 

14

  SECOND AMENDMENT
TO THE ADTRAN, INC.
AMENDED AND
RESTATED
1995 DIRECTORS STOCK OPTION PLAN
 This Second Amendment to the ADTRAN, Inc. Amended and Restated 1995 Directors
Stock Option Plan (the “Plan”) is made and entered into this 18th day of March, 2003, by ADTRAN, Inc. (the “Company”).
 W I T N E S S E T
H:
 WHEREAS, the Company maintains the Plan, which is administered by a committee appointed by the Board of Directors of the Company (the “Board”),
to provide for grants of options to non-employee members of the Board; and
 WHEREAS, in accordance with Section 13 of the Securities Exchange Act of 1934, as
amended, and guidance issued thereunder, the Board has determined that it is advisable to amend the Plan to eliminate provisions permitting an optionee to pay the exercise price of an option by instructing the Company to retain shares of common
stock of the Company upon the exercise of an option under the Plan with a fair market value equal to the exercise price; and
 WHEREAS, Article 10 of the Plan
permits the Board to amend the Plan at any time, subject to consent of the outstanding optionees for any amendment that would adversely affect, in any way, the rights of such optionees; and
 WHEREAS, the Board adopted resolutions approving the Second Amendment, on March 18, 2003;
 NOW,
THEREFORE, the Company hereby amends the Plan as follows:
 Effective as of March 18, 2003, Section 6.8 of the Plan shall be amended to read as
follows:
 1.
 “6.8             Medium and Time of Payment.
 (a)    The Option Price shall be payable upon the exercise of the Option in an amount equal to the number of shares then being purchased times the per share Option Price. Payment, at
the election of the Optionee (or his Beneficiary as provided in subsection (c) of Section 6.9), shall be (A) in cash; (B) by delivery to the Company of a certificate or certificates for shares of the Common Stock evidencing that the shares have been
owned by the Optionee for at least six months duly endorsed for transfer to the Company with signature guaranteed by a member firm of a national stock exchange or by a national or state bank or a federally chartered thrift institution (or guaranteed
or notarized in such other manner as the Committee may require); or (C) by a combination of (A) and (B).
 (b)    If the Optionee delivers Common Stock with a value that is less than the total Option Price, then such Optionee shall pay the balance of the total Option Price in cash, as provided in subsection (a)
above.”
 2.
 Except as specifically amended hereby, the Plan
shall remain in full force and effect.
 

15

  IN WITNESS WHEREOF, the Company has caused its duly authorized officer to execute this Second Amendment on the date first set forth
above.
   

	  
 	  
 	 ADTRAN, INC.
 
	 
 
 
 	  
 	 By: 
 	 
 /s/ JAMES E. MATTHEWS
 
	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	 James E. Matthews
 Senior Vice President – Finance and Administration
 and Chief Financial Officer
 

 
 16Adtran, Inc. Deferred Compensation Plan

  EXHIBIT 10.3(e)
 CPR
SELECT
 THE CORPORATEPLAN FOR RETIREMENT
SELECT PLAN
 Adoption Agreement
 IMPORTANT NOTE
 This document is not an IRS approved Prototype Plan. An Adopting Employer may not rely
solely on this Plan to ensure that the Plan is “unfunded and maintained primarily for the purpose of providing deferred compensation to a select group of management or highly compensated employees” and exempt from Parts 2 through 4 of
Title I of the Employee Retirement Income Security Act of 1974 with respect to the Employer’s particular situation. Fidelity Management Trust Company, its affiliates and employees may not provide you with legal advice in connection with the
execution of this document. This document should be reviewed by your attorney and/or accountant prior to execution.
 
 

  ADOPTION AGREEMENT
ARTICLE 1
 1.01     PLAN INFORMATION
  

	  
 	 (a)
 	 Name of Plan:
 
	  
 	  
 	  
 
	  
 	  
 	 This is the ADTRAN INC. Deferred Compensation Plan (the “Plan”).
 
	  
 	  
 	  
 
	  
 	 (b)
 	 Name of Plan Administrator, if not the Employer:
 
	  
 	  
 	  
 
	  
 	  
 	 ADTRAN INC.
 
	  
 	  
 	 Address:
 	 901 Explorer Blvd.,
 
	  
 	  
 	  
 	 Huntsville, AL 35814
 
	  
 	  
 	 Phone Number: 256-963-8000
 
	  
 	  
 	  
 
	  
 	  
 	 The Plan Administrator is the agent for service of legal process for the Plan.
 
	  
 	  
 	  
 
	  
 	 (c)
 	 Three Digit Plan Number:      001
 
	  
 	  
 	  
 
	  
 	 (d)
 	 Plan Year End (month/day):   December, 31st.

	  
 	  
 	  
 
	  
 	 (e)
 	 Plan Status (check one):
 
	  
 	  
 	  
 
	  
 	  
 	 (1)
 	 x
 	 Effective Date of new Plan: 9-1-2001
 
	  
 	  
 	  
 
	  
 	  
 	 (2)
 	 o
 	 Amendment Effective Date:
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	 The original effective date of the Plan.
 
						

 
 
 

  1.02     EMPLOYER
  

	  
 	 (a)
 	 The Employer is: ADTRAN INC.
 	 
	  
 	  
 	 Address:
 	 901 Explorer Blvd.
 	 
	  
 	  
 	  
 	 Huntsville, AL 35814
 	 
	  
 	  
 	 Contact’s Name:   Peter J. Ritch
 Telephone Number:  256-963-8608

	 
	  
 	  
 	  
 	  
 	 
	  
 	  
 	 (1)
 	 Employer’s Tax Identification Number: 63-0918200
 	 
	  
 	  
 	 (2)
 	 Business form of Employer (check one):
 	 
	  
 	  
 	  
 	  
 	 
	  
 	  
 	  
 	 (A)
 	 x x
 	 Corporation
 	 
	  
 	  
 	  
 	  
 	  
 	  
 	 
	  
 	  
 	  
 	 (B)
 	 o     
 	 Sole proprietor or partnership
 	 
	  
 	  
 	  
 	  
 	  
 	  
 	 
	  
 	  
 	  
 	 (C)
 	 o    
 	 Subchapter S Corporation
 	 
	  
 	  
 	  
 	  
 	  
 	  
 	 
	  
 	  
 	 (3)
 	 Employer’s fiscal year end: December 31st.
 	 
	  
 	  
 	  
 	 
	  
 	 (b)
 	 The term “Employer” includes the following Related Employer(s)
 (as defined in
Section 2.01(a)(21)):
 	 
	  
 	  
 	  
 	 
	  
 	  
 	  
 	 None
 	 
	  
 	  
 	  
 	 _____________________________________________________________
 
	  
 	  
 	  
 	 _____________________________________________________________
 
	  
 	  
 	  
 	 _____________________________________________________________
 
	  
 	  
 	  
 	 _____________________________________________________________
 
									

 
 

2

  1.03     COVERAGE

 

	  
 	 (a)
 	 Only those Employees listed in Attachment A will be eligible to participate in the Plan.

	  
 	  
 	  
 
	  
 	 (b)
 	 The Entry Date(s) shall be (check one):
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	 (1)
 	 x
 	 the first day of each Plan Year.
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	 (2)
 	 o
 	 the first day of each Plan Year and the date six months later.
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	 (3)
 	 o
 	 the first day or each Plan Year and the first day of the fourth, seventh, and tenth months.
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	 (4)
 	 o
 	 the first day of each month.
 

 
 1.04     COMPENSATION
 For purposes of determining
Contributions under the Plan, Compensation shall be as defined in Section 2.01(a)(6), but excluding (check the appropriate box(es)):
  

	  
 	 (a)
 	 o
 	 Overtime Pay.
 
	  
 	  
 	  
 	  
 
	  
 	 (b)
 	  
 	 Bonuses.
 
	  
 	  
 	  
 	  
 
	  
 	 (c)
 	  
 	 Commissions.
 
	  
 	  
 	  
 	  
 
	  
 	 (d)
 	 o
 	 The value of a qualified or a non-qualified stock option granted to an Employee by the Employer to the extent such value is
includable in the Employee’s taxable income
 
	  
 	  
 	  
 	  
 
	  
 	 (e)
 	 o
 	 No exclusions.
 

 
 1.05     CONTRIBUTIONS
  

	  
 	 (a)
 	  
 	 Deferral Contributions. The Employer shall make a Deferral Contribution in accordance with Section 4.01 on behalf of
each Participant who has an executed salary reduction agreement in effect with the Employer for the Plan Year (or portion of the Plan Year) in question, not to exceed 25% of base salary compensation for that Plan Year
and up to 100% of bonus payments earned during the plan year. See Amendment # 1 attached.
 

 

3

    

	  
 	 (b)
 	 o
 	 Matching Contributions-
 

 
  

	  
 	  
 	  
 	 (1)
 	  
 	 The Employer shall make a Matching Contribution on behalf of each Participant in an amount equal to the following
percentage of a Participant’s Deferral Contributions during the Plan Year (check one):
 

 
  

	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  
 	 (A)
 	 o
 	 50%
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  
 	 (B)
 	 o
 	 100%
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  
 	 (C)
 	 o
 	 ______%
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  
 	 (D)
 	 o
 	 (Tiered Match) ______% of the first ______% of the Participant’s Compensation contributed to the Plan,
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	 ______% of the next ______% of the Participant’s Compensation contributed to the Plan,
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	 ______% of the next ______% of the Participant’s Compensation contributed to the Plan.
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  
 	 (E)
 	 x
 	 The percentage declared for the year, if any, by a Board of Directors’ resolution.
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  
 	 (F)
 	  
 	 Other: The amount for the year, if any, will be determined by a Board of Directors Resolution.
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	 _____________________________________________________
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	 _____________________________________________________
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	 _____________________________________________________
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	 _____________________________________________________
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	 (2)
 	 o
 	 Matching Contribution Limits (check the appropriate box(es)):
 

  

	  
 	  
 	  
 	  
 	  
 	 (A)
 	 o
 	 Deferral Contributions in excess of ______% of the Participant’s Compensation for the period in question shall not be
considered for Matching Contributions.
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  
 	 Note:
 	  
 	 If the Employer elects a percentage limit in (A) above and requests the Trustee to account separately for matched and unmatched
Deferral Contributions, the Matching Contributions allocated to each Participant must be computed, and the percentage limit applied, based upon each period.
 

 
 

4

   

	  
 	  
 	  
 	  
 	  
 	 (B)
 	 o
 	 Matching Contributions, for each Participant for each Plan Year shall be limited to $_________________.
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	 (3)
 	  
 	 Eligibility Requirement(s) for Matching Contributions
 

 
  

	  
 	  
 	  
 	  
 	  
 	 A Participant who makes Deferral Contributions during the Plan Year under Section 1.05(a) shall be entitled to Matching
Contributions for that Plan Year if the Participant satisfies the following requirement(s) (Check the appropriate box(es). Options (B) and (C) may not be elected together):
 

 
  

	  
 	  
 	  
 	  
 	  
 	 (A)
 	 x x
 	 Is employed by the Employer on the last day of the Plan Year.
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  
 	 (B)
 	 o     
 	 Earns at least 500 Hours of Service during the Plan Year.
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  
 	 (C)
 	 o     
 	 Earns at least 1,000 Hours of Service during the Plan Year.
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  
 	 (D)
 	 o     
 	 No requirements.
 

 
  

	  
 	  
 	  
 	  
 	  
 	 Note:
 	  
 	 If option (A), (B) or (C) above is selected then Matching Contributions can only be made by the Employer after the Plan Year ends. Any Matching Contribution made before Plan Year end shall not be subject to the eligibility requirements of this Section 1.05(b)(3)).
 

 
 1.06     DISTRIBUTION DATES
 A Participant may elect to receive a distribution or commence distributions from his Account pursuant to Section 8.02 upon the following date(s) (check the appropriate box(es). If Option (c) is
elected, then options (a) and (b) may not be elected):
  

	  
 	 (a)
 	  
 	 Attainment of Normal Retirement Age. Normal Retirement Age under the Plan is
(check one):
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	 (1)
 	 x
 	 age 65.
 
	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	 (2)
 	 o
 	 age _____ (specify from 55 through 64).
 
	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	 (3)
 	 o
 	 later of the age _____ (can not exceed 65) or the fifth anniversary of the Participant’s Commencement Date.
 
	  
 	  
 	  
 	  
 	  
 	  
 

 
  

	  
 	 (b)
 	 o
 	 Attainment of Early Retirement Age. Early Retirement Age is the first day of the month after the Participant attains age
_____ (specify 55 or greater) and completes _____ Years of Service for Vesting.
 

 

5

   

	  
 	 (c)
 	 xx
 	 Termination of employment with the Employer.
 

 

1.07     VESTING SCHEDULE
  

	  
 	 (a)
 	  
 	 The Participant’s vested percentage in Matching Contributions elected in Section 1.05(b) shall be based upon the
schedule(s) selected below.
 

 
  

	  
 	  
 	  
 	 (1)
 	 o
 	 N/A – No Matching Contributions
 
	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	 (2)
 	 o
 	 100% Vesting immediately
 
	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	 (3)
 	  
 	 3 year cliff (see C below)
 
	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	 (4)
 	 o
 	 5 year cliff (see D below)
 
	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	 (5)
 	 o
 	 6 year graduated (see E below)
 
	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	 (6)
 	 o
 	 7 year graduated (see F below)
 
	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	 (7)
 	 x
 	 G below
 
	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	 (8)
 	 o
 	 Other (Attachment “B”)
 

 
  

	  
 	  
 	  
 	 Years of
 Service for
 Vesting
 	  
 	 Vesting Schedule
 	  
 
	  
 	  
 	  
 	  
 	 C
 	  
 	 D
 	  
 	 E
 	  
 	 F
 	  
 	 G
 	  
 
	  
 	  
 	  
 	 0
 	  
 	 0
 	 %
 	 0
 	 %
 	 0
 	 %
 	 0
 	 %
 	 ___
 	  
 
	  
 	  
 	  
 	 1
 	  
 	 0
 	 %
 	 0
 	 %
 	 0
 	 %
 	 0
 	 %
 	 ___
 	  
 
	  
 	  
 	  
 	 2
 	  
 	 0
 	 %
 	 0
 	 %
 	 20
 	 %
 	 0
 	 %
 	 ___
 	  
 
	  
 	  
 	  
 	 3
 	  
 	 100
 	 %
 	 0
 	 %
 	 40
 	 %
 	 20
 	 %
 	 ___
 	  
 
	  
 	  
 	  
 	 4
 	  
 	 100
 	 %
 	 0
 	 %
 	 60
 	 %
 	 40
 	 %
 	 ___
 	  
 
	  
 	  
 	  
 	 5
 	  
 	 100
 	 %
 	 100
 	 %
 	 80
 	 %
 	 60
 	 %
 	 ___
 	  
 
	  
 	  
 	  
 	 6
 	  
 	 100
 	 %
 	 100
 	 %
 	 100
 	 %
 	 80
 	 %
 	 ___
 	  
 
	  
 	  
 	  
 	 7
 	  
 	 100
 	 %
 	 100
 	 %
 	 100
 	 %
 	 100
 	 %
 	 100
 	 %
 

 
  

	  
 	 (b)
 	 o
 	 Years of Service for Vesting shall exclude (check one):
 

  

	  
 	  
 	  
 	 (1)
 	 x
 	 for new plans, service prior to the Effective Date as defined in Section 1.01(e)(1).
 
	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	 (2)
 	 o
 	 for existing plans converting from another plan document, service prior to the original Effective Date as defined in Section
1.01(e)(2).
 

 
 

6

    

	  
 	 (c)
 	 x
 	 A Participant will forfeit his Matching Contributions upon the occurrence of the following event(s):
criminal activity, theft, violation of non-compete agreement.
 
	  
 	  
 	  
 	  
 	 _______________________________________________
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	 _______________________________________________
 
	  
 	  
 	  
 	  
 
	  
 	 (d)
 	  
 	 A Participant will be 100% vested in his Matching Contributions upon (check the appropriate box(es), if
any):
 

  

	  
 	  
 	  
 	 (1)
 	 o
 	 Normal Retirement Age (as defined in Section 1.06(a)).
 
	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	 (2)
 	 o
 	 Early Retirement Age (as defined in Section 1.06(b)).
 
	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	 (3)
 	 o
 	 Death
 

 
 1.08     PREDECESSOR EMPLOYER SERVICE
  

	  
 	 o
 	  
 	 Service for purposes of vesting in Section 1.07(a) shall include service with the following employer(s):
None
 
	  
 	  
 	  
 	  
 
	  
 	 (a)
 	  
 	 _____________________________________________________________________________
 
	  
 	  
 	  
 	  
 
	  
 	 (b)
 	  
 	 _____________________________________________________________________________
 
	  
 	  
 	  
 	  
 
	  
 	 (c)
 	  
 	 _____________________________________________________________________________
 
	  
 	  
 	  
 	  
 
	  
 	 (d)
 	  
 	 _____________________________________________________________________________
 

 
 1.09     HARDSHIP WITHDRAWALS
 Participant withdrawals for hardship prior to termination of employment (check one):
  

	  
 	 (a)
 	 xx
 	 will be allowed in accordance with Section 7.07, subject to a $_10,000.00_ minimum amount (Must be at least
$1,000)
 
	  
 	  
 	  
 	  
 
	  
 	 (b)
 	 o    
 	 will not be
allowed.
 

 
 1.10     DISTRIBUTIONS

Subject to Articles 7 and 8, distributions under the Plan will be paid (check the appropriate box(es)):
  

	  
 	 (a)
 	 xx
 	 as a lump sum.
 
	  
 	  
 	  
 	  
 
	  
 	 (b)
 	 o    
 	 under a systematic withdrawal plan (installments) not to exceed 10 years.
 

  
 

7

  1.11     INVESTMENT DECISIONS
  

	  
 	 (a)
 	  
 	 Investment Directions
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	 Investments in which the Accounts of Participants shall be treated as invested and reinvested shall be directed (check
one):
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	 (1)
 	 o    
 	 by the Employer among the options listed in (b) below.
 
	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	 (2)
 	 xx
 	 by each Participant among the options listed in (b) below.
 
	  
 	  
 	  
 	  
 	  
 	  
 

  

	  
 	  
 	  
 	 (3)
 	 o    
 	 by each Participant with respect to Deferral Contributions and by the Employer with respect to Employer Matching
Contributions. The Employer must direct the Employer Matching Contributions among the same investment options made available for Participant directed sources listed in (b) below.
 

  

	  
 	 (b)
 	  
 	 Plan Investment Options
 

  

	  
 	  
 	  
 	 Participant Accounts will be treated as invested among the Fidelity Funds listed below pursuant to Participant and/or
Employer directions.
 

  

	  
 	  
 	  
 	 Same fund selection as in the ADTRAN 401(k) program
 

  

	 Fund Name
 	  
 	 Fund Number
 	  
 
	  
 	  
 	  
 	  
 
	 (1) Fidelity Retirement Money Market Portfolio
 	  
 	 0630
 	  
 
	 (2) Fidelity Government Income Fund
 	  
 	 0054
 	  
 
	 (3) Fidelity U. S. Bond Index Fund
 	  
 	 0651
 	  
 
	 (4) Fidelity Balanced Fund
 	  
 	 0304
 	  
 
	 (5) Fidelity Equity-Income Fund
 	  
 	 0023
 	  
 
	 (6) Fidelity Fund
 	  
 	 0003
 	  
 
	 (7) Spartan U. S. Equity Index Fund
 	  
 	 0650
 	  
 
	 (8) Fidelity Aggressive Growth Fund
 	  
 	 0324
 	  
 
	 (9) Fidelity Blue Chip Growth
 	  
 	 0312
 	  
 
	 (10) Fidelity Growth Company Fund
 	  
 	 0025
 	  
 
	 (11) Fidelity Low-Price Stock Fund
 	  
 	 0319
 	  
 

 

8

    

	 (12) Fidelity Diversified International Fund
 	  
 	 0325
 	  
 
	 (13) Fidelity Freedom Income Fund (SM)
 	  
 	 0369
 	  
 
	 (14) Fidelity Freedom 2000 Fund (SM)
 	  
 	 0370
 	  
 
	 (15) Fidelity Freedom 2010 Fund (SM)
 	  
 	 0371
 	  
 
	 (16) Fidelity Freedom 2020 Fund (SM)
 	  
 	 0372
 	  
 
	 (17) Fidelity Freedom 2030 Fund (SM)
 	  
 	 0373
 	  
 
	 (18) Fidelity Freedom 2040 Fund (SM)
 	  
 	 0718
 	  
 
	 (19) Morgan Stanley Dean Witter Institutional 
 	  
 	 OFM7
 	  
 
	  Small Co. Growth Portfolio-Class B
 	  
 	  
 	  
 

  

	  
 	  
 	  
 	 Note:
 	 An additional annual recordkeeping fee will be charged for each fund in excess of five funds.
 

 

9

   

	  
 	  
 	  
 	 Note:
 	 The method and frequency for change of investments will be determined under the rules applicable to the selected funds.
Information will be provided regarding expenses, if any, for changes in investment options.
 

 
 1.12     RELIANCE ON PLAN
 An adopting Employer may not rely solely on this Plan to ensure that
the Plan is “unfunded and maintained primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employees” and exempt from Parts 2 through 4 of Title I of the Employee Retirement
Income Security Act of 1974 with respect to the Employer’s particular situation. This Agreement must be reviewed by your attorney and/or accountant before it is executed.
 This Adoption Agreement may be used only in conjunction with the CORPORATEplan for Retirement Select Basic Plan Document.
 

10

  EXECUTION PAGE
(Fidelity’s Copy)
 IN WITNESS WHEREOF, the Employer has caused this Adoption Agreement to be executed this 18 day of June, 2001.
    

	  
 	  
 	 Employer
 	 ADTRAN, Inc.
 
	 
 
 
 	  
 	 By 
 	 
 /s/ JOHN R. COOPER
 
	  
 	  
 	  
 	 
 
	  
 	  
 	 Title
 	 Senior Vice President & CFO
 

    

	  
 	  
 	 Employer
 	  
 
	  
 	  
 	  
 	 
 
	 
 
 
 	  
 	 By 
 	  
 
	  
 	  
 	  
 	 
 
	  
 	  
 	 Title
 	  
 
	  
 	  
 	  
 	 
 

  
 

11

  EXECUTION PAGE
(Employer’s Copy)
 IN WITNESS WHEREOF, the Employer has caused this Adoption Agreement to be executed this 18 day of June, 2001.
    

	  
 	  
 	 Employer
 	 ADTRAN, Inc.
 
	 
 
 
 	  
 	 By 
 	 
 /s/ JOHN R. COOPER
 
	  
 	  
 	  
 	 
 
	  
 	  
 	 Title
 	 Senior Vice President & CFO
 

    

	  
 	  
 	 Employer
 	  
 
	  
 	  
 	  
 	 
 
	 
 
 
 	  
 	 By 
 	  
 
	  
 	  
 	  
 	 
 
	  
 	  
 	 Title
 	  
 
	  
 	  
 	  
 	 
 

  
 

12

  The CORPORATEplan for Retirement Select Plan
 BASIC PLAN DOCUMENT
 IMPORTANT NOTE
 This document is not an IRS approved Prototype Plan. An Adopting Employer may not rely solely on this Plan to ensure that the Plan is “unfunded and maintained primarily for the
purpose of providing deferred compensation to a select group of management or highly compensated employees” and exempt from parts 2 through 4 of Title I of the Employee Retirement Income Security Act of 1974 with respect to the Employer’s
particular situation. Fidelity Management Trust Company, its affiliates and employees may not provide you with legal advice in connection with the execution of this document. This document should be reviewed by your attorney and/or accountant prior
to execution.
 CPR SELECT
BASIC PLAN DOCUMENT
 
 

     

	 ARTICLE 1
 	  
 
	 ADOPTION AGREEMENT
 	  
 
	  
 	  
 
	 ARTICLE 2
 	  
 
	 DEFINITIONS
 	  
 
	  
 	  
 
	 2.01 - Definitions
 	  
 
	  
 	  
 
	 ARTICLE 3
 	  
 
	 PARTICIPATION
 	  
 
	  
 	  
 
	 3.01 - Date of Participation
 	  
 
	 3.02 - Resumption of Participation Following Re employment
 	  
 
	 3.03 - Cessation or Resumption of Participation Following a Change in Status
 	  
 
	  
 	  
 
	 ARTICLE 4
 	  
 
	 CONTRIBUTIONS
 	  
 
	  
 	  
 
	 4.01 - Deferral Contributions
 	  
 
	 4.02. Matching Contributions
 	  
 
	 4.03. Time of Making Employer Contributions
 	  
 
	  
 	  
 
	 ARTICLE 5
 	  
 
	 PARTICIPANTS’ ACCOUNTS
 	  
 
	  
 	  
 
	 5.01 - Individual Accounts
 	  
 
	  
 	  
 
	 ARTICLE 6
 	  
 
	 INVESTMENT OF CONTRIBUTIONS
 	  
 
	  
 	  
 
	 6.01 - Manner of Investment
 	  
 
	 6.02 - Investment Decisions
 	  
 
	  
 	  
 
	 ARTICLE 7
 	  
 
	 RIGHT TO BENEFITS
 	  
 
	  
 	  
 
	 7.01 - Normal or Early Retirement
 	  
 
	 7.02 - Death
 	  
 
	 7.03 - Other Termination of Employment
 	  
 
	 7.04 - Separate Account
 	  
 
	 7.05 - Forfeitures
 	  
 
	 7.06 - Adjustment for Investment Experience
 	  
 
	 7.07 - Hardship Withdrawals
 	  
 
	  
 	  
 
	 ARTICLE 8
 	  
 
	 DISTRIBUTION OF BENEFITS PAYABLE AFTER TERMINATION OF SERVICE
 	  
 
	  
 	  
 
	 8.01 - Distribution of Benefits to Participants and Beneficiaries
 	  
 
	 8.02 - Determination of Method of Distribution
 	  
 
	 8.03 - Notice to Trustee
 	  
 
	 8.04 - Time of Distribution
 	  
 
	  
 	  
 
	 ARTICLE 9
 	  
 
	 AMENDMENT AND TERMINATION
 	  
 
	  
 	  
 
	 9.01 - Amendment by Employer
 	  
 
	  
 	  
 

 

2

     

	 9.02 - Retroactive Amendments
 	  
 
	 9.03 - Termination
 	  
 
	 9.04 - Distribution upon Termination of the Plan
 	  
 
	  
 	  
 
	 ARTICLE 10
 	  
 
	 MISCELLANEOUS
 	  
 
	  
 	  
 
	 10.01 - Communication to Participants
 	  
 
	 10.02 - Limitation of Rights
 	  
 
	 10.03 - Nonalienability of Benefits
 	  
 
	 10.04 - Facility of Payment
 	  
 
	 10.05 - Information between Employer and Trustee
 	  
 
	 10.06 - Notices
 	  
 
	 10.07 - Governing Law
 	  
 
	  
 	  
 
	 ARTICLE 11
 	  
 
	 PLAN ADMINISTRATION
 	  
 
	  
 	  
 
	 11.01 - Powers and responsibilities of the Administrator
 	  
 
	 11.02 - Nondiscriminatory Exercise of Authority
 	  
 
	 11.03 - Claims and Review Procedures
 	  
 
	 11.04 - Cost of Administration
 	  
 

 
  
 

3

  PREAMBLE
 It is the intention of the Employer to
establish herein an unfunded plan maintained solely for the purpose of providing deferred compensation for a select group of management or highly compensated employees for purposes of Title I of ERISA.
 Article 1.       Adoption Agreement.
 Article
2.       Definitions.
 2.01.    Definitions.
 (a)       Wherever used herein, the following terms have the meanings set forth below, unless a different meaning is clearly required by the context:
 (1)       “Account” means an account established on the books of the Employer for the purpose of recording amounts credited on behalf of a Participant and
any income, expenses, gains or losses included thereon.
 (2)       “Administrator” means the Employer adopting this Plan, or other person designated by the Employer in Section 1.01(b).
 (3)       “Adoption Agreement” means Article 1 under which the Employer establishes and adopts or amends the Plan and designates the optional provisions selected by the Employer.
The provisions of the Adoption Agreement shall be an integral part of the Plan.
 (4)       “Beneficiary” means the person or persons entitled under Section 7.02 to receive benefits under the Plan upon the death of a Participant.
 (5)       “Code” means the Internal Revenue Code of 1986, as amended from time to time.
 (6)       “Compensation” shall mean for purposes of Article 4 (Contributions) wages as defined in Section 3401(a) of the Code and all
other payments of compensation to an employee by the employer (in the course of the employers trade or business) for which the employer is required to finish the employee a written statement under Section 6041(d) and 6051(a)(3) of the Code,
excluding any items elected by the Employer in Section 1.04, reimbursements or other expense allowances, fringe benefits (cash and non-cash), moving expenses, deferred compensation and welfare benefits, but including amounts that are not includable
in the gross income of the Participant under a salary reduction agreement by reason of the application of Sections 125, 402(a)(8), 402(h), or 403(b) of the Code. Compensation must be determined without regard to any rules under Section 3401(a) of
the Code that limit the remuneration included in wages based on the nature or location of the employment or the services performed (such as the exception for agricultural labor in Section 3401(a)(2) of the Code).
 

4

  Compensation shall generally be based on the amount that would have been actually paid to the Participant during the
Plan Year but for an election under Section 4.01.
 In the case of any Self-Employed Individual or an Owner-Employee Compensation shall mean
the Individual’s Earned Income.
 (7)       “Earned Income” means the
net earnings of a Self-Employed Individual derived from the trade or business with respect to which the Plan is established and for which the personal services of such individual are a material income-providing factor, excluding any items not
included in gross income and the deductions allocated to such items, except that for taxable years beginning after December 31, 1989 net earnings shall be determined with regard to the deduction allowed under Section 164(f) of the Code, to the
extent applicable to the Employer. Net earnings shall be reduced by contributions of the Employer to any qualified plan, to the extent a deduction is allowed to the Employer for such contributions under Section 404 of the Code.
 (8)       “Employee” means any employee of the Employer, Self-Employed Individual or
Owner-Employee.
 (9)       “Employer” means the employer named in Section
1.02(a) and any Related Employers designated in Section 1.02(b).
 (10)     “Employment
Commencement Date” means the date on which the Employee first performs an Hour of Service.
 (11)     “ERISA” means the Employee Retirement Income Security Act of 1974, as from time to time amended.
 (12)     “Fidelity Fund” means any Registered Investment Company which is made available to plans utilizing the CORPORATEplan for Retirement Select Plan.
 (13)     “Fund Share” means the share, unit, or other evidence of ownership in a Fidelity
Fund.
 (14)     “Hour of Service” means, with respect to any Employee,
 (A)      Each hour for which the Employee is directly or indirectly paid, or entitled to payment, for
the performance of duties for the Employer or a Related Employer, each such hour to be credited to the Employee for the computation period in which the duties were performed;
 (B)      Each hour for which the Employee is directly or indirectly paid, or entitled to payment, by the Employer or Related Employer (including
payments made or due from a trust fund or insurer to which the Employer contributes or pays premiums) on account of a period of time during
 

5

  which no duties are performed (irrespective of whether the employment relationship has terminated) due to vacation, holiday, illness,
incapacity, disability, layoff, jury duty, military duty, or leave of absence, each such hour to be credited to the Employee for the Eligibility Computation Period in which such period of time occurs, subject to the following rules:
 (i)       No more than 501 Hours of Service shall be credited under this paragraph (B) on account
of any single continuous period during which the Employee performs no duties;
 (ii)      Hours of Service shall not be credited under this paragraph (B) for a payment which solely reimburses the Employee for medically-related expenses, or which is made or due under a plan maintained solely for the purpose of complying with
applicable workmen’s compensation, unemployment compensation or disability insurance laws; and
 (iii)     If the period during which the Employee performs no duties falls within two or more computation periods and if the payment made on account of such period is not calculated on the basis of
units of time, the Hours of Service credited with respect to such period shall be allocated between not more than the first two such computation periods on any reasonable basis consistently applied with respect to similarly situated Employees;
and
 (C)      Each hour not counted under paragraph (A) or (B) for which back pay,
irrespective of mitigation of damages, has been either awarded or agreed to be paid by the Employer or a Related Employer, each such hour to be credited to the Employee for the computation period to which the award or agreement pertains rather than
the computation period in which the award agreement or payment is made.
 For purposes of determining Hours of Service, Employees of the
Employer and of all Related Employers will be treated as employed by a single employer. For purposes of paragraphs (B) and (C) above, Hours of Service will be calculated in accordance with the provisions of Section 2530.200b-2(b) of the Department
of Labor regulations which are incorporated herein by reference.
 Solely for purposes of determining whether a break in service for
participation purposes has occurred in a computation period, an individual who is absent from work for maternity or paternity reasons shall receive credit for the hours of service which would otherwise been credited to such individual but for such
absence, or in any case in which such hours cannot be determined, 8 hours of service per day of such absence. For purposes of this paragraph, an absence from work for maternity reasons means an absence (1) by reason of the pregnancy of the
individual, (2) by
 

6

  reason of a birth of a child of the individual, (3) by reason of the placement of a child with the individual in connection with the
adoption of such child by such individual, or (4) for purposes of caring for such child for a period beginning immediately following such birth or placement. The hours of service credited under this paragraph shall be credited (1) in the computation
period in which the absence begins if the crediting is necessary to prevent a break in service in that period, or (2) in all other cases, in the following computation period.
 (15)     “Normal Retirement Age” means the normal retirement age specified in Section 1.06(a) of the Adoption Agreement.
 (16)     “Owner-Employee” means, if the Employer is a sole proprietorship, the individual who is the sole
proprietor, or if the Employer is a partnership, a partner who owns more than 10 percent of either the capital interest or the profits interest of the partnership.
 (17)     “Participant” means any Employee who participates in the Plan in accordance with Article 3 hereof.
 (18)     “Plan” means the plan established by the Employer as set forth herein as a new plan or as an amendment to an
existing plan, by executing the Adoption Agreement, together with any and all amendments hereto.
 (19)     “Plan Year” means the 12-consecutive month period designated by the Employer in Section 1.01(d).
 (20)     “Registered Investment Company” means any one or more corporations, partnerships or trusts registered under the Investment Company Act of 1940 for which
Fidelity Management and Research Company serves as investment advisor.
 (21)     “Related
Employer” means any employer other than the Employer named in Section 1.02(a), if the Employer and such other employer are members of a controlled group of corporations (as defined in Section 414(b) of the Code) or an affiliated service group
(as defined in Section 414(m)), or are trades or businesses (whether or not incorporated) which are under common control (as defined in Section 414(c)), or such other employer is required to be aggregated with the Employer pursuant to regulations
issued under Section 414(o).
 (22)     “Self-Employed Individual” means an
individual who has Earned Income for the taxable year from the Employer or who would have had Earned Income but for the fact that the trade or business had no net profits for the taxable year.
 (23)     “Trust” means the trust created by the Employer.
 (24)     “Trust Agreement” means the agreement between the Employer and the Trustee, as set forth in a separate agreement, under which assets
are held, administered, and managed subject to the claims of the Employer’s creditors in
 

7

  the event of the Employer’s insolvency, until paid to Plan Participants and their Beneficiaries as specified in the Plan.

(25)     “Trust Fund” means the property held in the Trust by the Trustee.
 (26)     “Trustee” means the corporation or individuals appointed by the Employer to administer
the Trust in accordance with the Trust Agreement.
 (27)     “Years of Service for
Vesting” means, with respect to any Employee, the number of whole years of his periods of service with the Employer or a Related Employer (the elapsed time method to compute vesting service), subject to any exclusions elected by the Employer in
Section 1.07(b). An Employee will receive credit for the aggregate of all time period(s) commencing with the Employee’s Employment Commencement Date and ending on the date a break in service begins, unless any such years are excluded by Section
1.07(b). An Employee will also receive credit for any period of severance of less than 12 consecutive months. Fractional periods of a year will be expressed in terms of days.
 In the case of a Participant who has 5 consecutive 1-year breaks in service, all years of service after such breaks in service will be disregarded for the purpose of vesting the Employer-derived
account balance that accrued before such breaks, but both pre-break and post-break service will count for the purposes of vesting the Employer-derived account balance that accrues after such breaks. Both accounts will share in the earnings and
losses of the fund.
 In the case of a Participant who does not have 5 consecutive 1-year breaks in service, both the pre-break and
post-break service will count in vesting both the pre-break and post-break employer-derived account balance.
 A break in service is a
period of severance of at least 12 consecutive months. Period of severance is a continuous period of time during which the Employee is not employed by the Employer. Such period begins on the date the Employee retires, quits or is discharged, or if
earlier, the 12 month anniversary of the date on which the Employee was otherwise first absent from service.
 In the case of an individual
who is absent from work for maternity or paternity reasons, the 12-consecutive month period beginning on the first anniversary of the first date of such absence shall not constitute a break in service. For purposes of this paragraph, an absence from
work for maternity or paternity reasons means an absence (1) by reason of the pregnancy of the individual, (2) by reason of the birth of a child of the individual, (3) by reason of the placement of a child with the individual in connection with the
adoption of such child by such individual, or (4) for purposes of caring for such child for a period beginning immediately following such birth or placement.
 If the Plan maintained by the Employer is the plan of a predecessor employer, an Employee’s Years of Service for Vesting shall include years of service with such predecessor employer. In any case in which the
Plan
 

8

  maintained by the Employer is not the plan maintained by a predecessor employer, service for such predecessor shall be treated as service
for the Employer to the extent provided in Section 1.08.
 (b)      Pronouns used in the
Plan are in the masculine gender but include the feminine gender unless the context clearly indicates otherwise.
 Article 3.       Participation.
 3.01.    Date of Participation. An eligible Employee (as set forth in Section 1.03(a)) will become a Participant in the Plan on the first Entry
Date after which he becomes an eligible Employee if he has filed an election pursuant to Section 4.01. If the eligible Employee does not file an election pursuant to Section 4.01 prior to his first Entry Date, then the eligible Employee will become
a Participant in the Plan as of the first day of a Plan Year for which he has filed an election.
 3.02.    Resumption of Participation Following Re employment. If a Participant ceases to be an Employee and thereafter returns to the employ of the Employer he will again become a Participant as
of an Entry Date following the date on which he completes an Hour of Service for the Employer following his re employment, if he is an eligible Employee as defined in Section 1.03(a), and has filed an election pursuant to Section 4.01.
 3.03.    Cessation or Resumption of Participation Following a Change in Status. If any Participant continues in the employ of the Employer or Related Employer but ceases to be an eligible Employee as defined in Section 1.03(a), the individual shall continue to be a Participant until the entire
amount of his benefit is distributed; however, the individual shall not be entitled to make Deferral Contributions or receive an allocation of Matching contributions during the period that he is not an eligible Employee. Such Participant shall
continue to receive credit for service completed during the period for purposes of determining his vested interest in his Accounts. In the event that the individual subsequently again becomes an eligible Employee, the individual shall resume full
participation in accordance with Section 3.01.
 Article 4.       Contributions.
 4.01.    Deferral
Contributions. Each Participant may elect to execute a salary reduction agreement with the Employer to reduce his Compensation by a specified percentage not exceeding the percentage set forth in
Section 1.05(a) and equal to a whole number multiple of one (1) percent. Such agreement shall become effective on the first day of the period as set forth in the Participant’s election. The election will be effective to defer Compensation
relating to all services performed in a Plan Year subsequent to the filing of such an election. An election once made will remain in effect until a new election is made. A new election will be effective as of the first day of the following Plan Year
and will apply only to Compensation payable with respect to services rendered after such date. Amounts credited to a Participant’s account prior to the effective date of any new election will not be affected and will be paid in accordance with
that prior election. The Employer shall credit an amount to the account maintained on behalf of the Participant corresponding to the amount of said reduction. Under no circumstances may a
 

9

  salary reduction agreement be adopted retroactively. A Participant may not revoke a salary reduction agreement for a Plan year during that year.

4.02.    Matching Contributions. If so provided by the
Employer in Section 1.05(b), the Employer shall make a Matching Contribution to be credited to the account maintained on behalf of each Participant who had Deferral Contributions made on his behalf during the year and who meets the requirement, if
any, of Section 1.05(b)(3). The amount of the Matching Contribution shall be determined in accordance with Section 1.05(b).
 4.03.    Time of Making Employer Contributions. The Employer will from time to time make a transfer of assets to the Trustee for each Plan Year.
The Employer shall provide the Trustee with information on the amount to be credited to the separate account of each Participant maintained under the Trust.
 Article
5.       Participants’ Accounts.
 5.01.    Individual Accounts. The Administrator will establish and maintain an Account for each Participant which
will reflect Matching and Deferral Contributions credited to the Account on behalf of the Participant and earnings, expenses, gains and losses credited thereto, and deemed investments made with amounts in the Participant’s Account. The
Administrator will establish and maintain such other accounts and records as it decides in its discretion to be reasonably required or appropriate in order to discharge its duties under the Plan. Participants will be furnished statements of their
Account values at least once each Plan Year.
 Article 6.       Investment of
Contributions.
 6.01.    Manner of Investment. All amounts credited to the Accounts of Participants shall be treated as though invested and reinvested only in eligible investments selected by the Employer in Section 1.11(b).
 6.02.    Investment Decisions. Investments in which the Accounts of
Participants shall be treated as invested and reinvested shall be directed by the Employer or by each Participant, or both, in accordance with the Employer’s election in Section 1.11(a).
 (a)       All dividends, interest, gains and distributions of any nature earned in respect of Fund Shares in which the
Account is treated as investing shall be credited to the Account as though reinvested in additional shares of that Fidelity Fund.
 (b)      Expenses attributable to the acquisition of investments shall be charged to the Account of the Participant for which such investment is made.
 Article 7.       Right to Benefits.
 7.01.    Normal or Early Retirement. If provided by the Employer in Section 1.07(d), each Participant who attains his Normal Retirement Age or
Early Retirement Age will have a nonforfeitable interest in his Account in accordance with the vesting schedule elected in Section 1.07. If a Participant retires on or after attainment of Normal or Early Retirement Age, such retirement is referred
to as a normal retirement. On or after his normal retirement, the balance of
 

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  the Participant’s Account, plus any amounts thereafter credited to his Account, subject to the provisions of Section 7.06, will be distributed to him in
accordance with Article 8.
 If provided by the Employer in Section 1.06, a Participant who separates from service before satisfying the age requirements for
early retirement, but has satisfied the service requirement will be entitled to the distribution of his Account, subject to the provisions of Section 7.06, in accordance with Article 8, upon satisfaction of such age requirement.
 7.02.    Death. If a Participant dies before the distribution of
his Account has commenced, or before such distribution has been completed, his Account shall become vested in accordance with the vesting schedule elected in Section 1.07 and his designated Beneficiary or Beneficiaries will be entitled to receive
the balance or remaining balance of his Account, plus any amounts thereafter credited to his Account, subject to the provisions of Section 7.06. Distribution to the Beneficiary or Beneficiaries will be made in accordance with Article 8.

A Participant may designate a Beneficiary or Beneficiaries, or change any prior designation of Beneficiary or Beneficiaries by giving notice to the Administrator on a
form designated by the Administrator. If more than one person is designated as the Beneficiary, their respective interests shall be as indicated on the designation form.
 A copy of the death notice or other sufficient documentation must be filed with and approved by the Administrator. If upon the death of the Participant there is, in the opinion of the Administrator, no designated
Beneficiary for part or all of the Participant’s Account, such amount will be paid to his surviving spouse or, if none, to his estate (such spouse or estate shall be deemed to be the Beneficiary for purposes of the Plan). If a Beneficiary dies
after benefits to such Beneficiary have commenced, but before they have been completed, and, in the opinion of the Administrator, no person has been designated to receive such remaining benefits, then such benefits shall be paid to the deceased
Beneficiary’s estate.
 7.03.    Other Termination of Employment.
If provided by the Employer in Section 1.06, if a Participant terminates his employment for any reason other than death or normal retirement, he will be entitled to a termination benefit equal to (i) the vested percentage(s)
of the value of the Matching Contributions to his Account, as adjusted for income, expense, gain, or loss, such percentage(s) determined in accordance with the vesting schedule(s) selected by the Employer in Section 1.07, and (ii) the value of the
Deferral Contributions to his Account as adjusted for income, expense, gain or loss. The amount payable under this Section 7.03 will be subject to the provisions of Section 7.06 and will be distributed in accordance with Article 8.
 7.04.    Separate Account. If a distribution from a
Participant’s Account has been made to him at a time when he has a nonforfeitable right to less than 100 percent of his Account, the vesting schedule in Section 1.07 will thereafter apply only to amounts in his Account attributable to Matching
Contributions allocated after such distribution. The balance of his Account immediately after such distribution will be transferred to a separate account which will be maintained for the purpose of determining his interest therein according to the
following provisions.
 

11

  At any relevant time prior to a forfeiture of any portion thereof under Section 7.05, a Participant’s nonforfeitable interest in his
Account held in a separate account described in the preceding paragraph will be equal to P(AB + (RxD))-(RxD), where P is the nonforfeitable percentage at the relevant time determined under Section 7.05; AB is the account balance of the separate
account at the relevant time; D is the amount of the distribution; and R is the ratio of the account balance at the relevant time to the account balance after distribution. Following a forfeiture of any portion of such separate account under Section
7.05 below, any balance in the Participant’s separate account will remain fully vested and nonforfeitable.
 7.05.    Forfeitures. If a Participant terminates his employment, any portion of his Account (including any amounts credited after his termination
of employment) not payable to him under Section 7.03 will be forfeited by him. For purposes of this paragraph, if the value of a Participant’s vested account balance is zero, the Participant shall
be deemed to have received a distribution of his vested interest immediately following termination of employment. Such forfeitures will be applied to reduce the contributions of the Employer under the Plan (or administrative expenses of the
Plan).
 7.06.    Adjustment for Investment Experience. If any distribution under this Article 7 is not made in a single payment, the amount remaining in the Account after the distribution will be subject to adjustment until distributed to reflect the income and gain or loss on the investments in
which such amount is treated as invested and any expenses properly charged under the Plan and Trust to such amounts.
 7.07.    Hardship Withdrawals. Subject to the provisions of Article 8, a Participant shall not be permitted to withdraw his Account (and earnings
thereon) prior to retirement or termination of employment, except if permitted under Section 1.09, a Participant may apply to the Administrator to withdraw some or all of his Account if such withdrawal is made on account of a hardship as determined
by the Employer.
 Article 8.       Distribution of Benefits Payable after Termination of
Service.
 8.01.    Distribution of Benefits to Participants and
Beneficiaries.
 (a)       Distributions under the
Plan to a Participant or to the Beneficiary of the Participant shall be made in a lump sum in cash or, if elected by the Employer in Section 1.10 and specified in the Participant’s deferral election, under a systematic withdrawal plan
(installment(s)) not exceeding 10 years upon retirement, death or other termination of employment.
 (b)      Distributions under a systematic withdrawal plan must be made in substantially equal annual, or more frequent, installments, in cash, over a period certain which does not extend 10
years. The period certain specified in a Participant’s first deferral election specifying distribution under a systematic withdrawal plan shall apply to all subsequent elections of distributions under a systematic withdrawal plan made by the
Participant.
 8.02.    Determination of Method of Distribution.
The Participant will determine the method of distribution of benefits to himself and the method of distribution to his Beneficiary. Such determination will be made at the time the Participant makes a deferral election. If
the
 

12

  Participant does not determine the method of distribution to him or his Beneficiary, the method shall be a
lump sum.
 8.03.    Notice to Trustee. The
Administrator will notify the Trustee in writing whenever any Participant or Beneficiary is entitled to receive benefits under the Plan. The Administrator’s notice shall indicate the form, amount and frequency of benefits that such Participant
or Beneficiary shall receive.
 8.04     Time of Distribution.
In no event will distribution to a Participant be made later than the date specified by the Participant in his salary reduction agreement.
 Article
9.       Amendment and Termination.
 9.01.    Amendment by Employer. The Employer reserves the authority to amend the Plan by filing with the Trustee an
amended Adoption Agreement, executed by the Employer only, on which said Employer has indicated a change or changes in provisions previously elected by it. Such changes are to be effective on the effective date of such amended Adoption Agreement.
Any such change notwithstanding, no Participant’s Account shall be reduced by such change below the amount to which the Participant would have been entitled if he had voluntarily left the employ of the Employer immediately prior to the date of
the change. The Employer may from time to time make any amendment to the Plan that may be necessary to satisfy the Code or ERISA. The Employer’s board of directors or other individual specified in the resolution adopting this Plan shall act on
behalf of the Employer for purposes of this Section 9.01.
 9.02.    Retroactive
Amendments. An amendment made by the Employer in accordance with Section 9.01 may be made effective on a date prior to the first day of the Plan Year in which it is adopted if such amendment is
necessary or appropriate to enable the Plan and Trust to satisfy the applicable requirements of the Code or ERISA or to conform the Plan to any change in federal law or to any regulations or ruling thereunder. Any retroactive amendment by the
Employer shall be subject to the provisions of Section 9.01.
 9.03.    Termination. The Employer has adopted the Plan with the intention and expectation that contributions will be continued indefinitely. However, said Employer has no obligation or liability whatsoever to maintain the Plan for any
length of time and may discontinue contributions under the Plan or terminate the Plan at any time by written notice delivered to the Trustee without any liability hereunder for any such discontinuance or termination.
 9.04.    Distribution upon Termination of the Plan. Upon termination of
the Plan, no further Deferral Contributions or Matching Contributions shall be made under the Plan, but Accounts of Participants maintained under the Plan at the time of termination shall continue to be governed by the terms of the Plan until paid
out in accordance with the terms of the Plan.
 Article 10.     Miscellaneous.
 10.01.  Communication to Participants. The Plan
will be communicated to all Participants by the Employer promptly after the Plan is adopted.
 

13

  10.02.  Limitation of Rights. Neither
the establishment of the Plan and the Trust, nor any amendment thereof, nor the creation of any fund or account, nor the payment of any benefits, will be construed as giving to any Participant or other person any legal or equitable right against the
Employer, Administrator or Trustee, except as provided herein; and in no event will the terms of employment or service of any Participant be modified or in any way affected hereby.
 10.03.  Nonalienability of Benefits. The benefits provided hereunder will not be subject to alienation, assignment,
garnishment, attachment, execution or levy of any kind, either voluntarily or involuntarily, and any attempt to cause such benefits to be so subjected will not be recognized, except to such extent as may be required by law.
 10.04.  Facility of Payment. In the event the Administrator determines, on the
basis of medical reports or other evidence satisfactory to the Administrator, that the recipient of any benefit payments under the Plan is incapable of handling his affairs by reason of minority, illness, infirmity or other incapacity, the
Administrator may direct the Trustee to disburse such payments to a person or institution designated by a court which has jurisdiction over such recipient or a person or institution otherwise having the legal authority under State law for the care
and control of such recipient. The receipt by such person or institution of any such payments shall be complete acquittance therefore, and any such payment to the extent thereof, shall discharge the liability of the Trust for the payment of benefits
hereunder to such recipient.
 10.05.  Information between Employer and Trustee.
The Employer agrees to furnish the Trustee, and the Trustee agrees to furnish the Employer with such information relating to the Plan and Trust as may be required by the other in order to carry out their respective duties
hereunder, including without limitation information required under the Code or ERISA and any regulations issued or forms adopted thereunder.
 10.06.  Notices. Any notice or other communication in connection with this Plan shall be deemed delivered in writing if addressed as provided below and if
either actually delivered at said address or, in the case of a letter, three business days shall have elapsed after the same shall have been deposited in the United States mails, first-class postage prepaid and registered or certified:
 (a)       If to the Employer or Administrator, to it at the address set forth in the Adoption
Agreement, to the attention of the person specified to receive notice in the Adoption Agreement;
 (b)      If to the Trustee, to it at the address set forth in the Trust Agreement;
 or, in each case at such other address as
the addressee shall have specified by written notice delivered in accordance with the foregoing to the addressor’s then effective notice address.
 10.07.  Governing Law. The Plan and the accompanying Adoption Agreement will be construed, administered and enforced according to ERISA, and to the extent
not preempted thereby, the laws of the Commonwealth of Massachusetts.
 

14

  Article 11.     Plan Administration.
 11.01.  Powers and responsibilities of the Administrator.
The Administrator has the full power and the full responsibility to administer the Plan in all of its details, subject, however, to the applicable requirements of ERISA. The Administrator’s powers and responsibilities
include, but are not limited to, the following:
 (a)       To make and enforce such
rules and regulations as it deems necessary or proper for the efficient administration of the Plan;
 (b)      To interpret the Plan, its interpretation thereof in good faith to be final and conclusive on all persons claiming benefits under the Plan;
 (c)       To decide all questions concerning the Plan and the eligibility of any person to participate in the
Plan;
 (d)      To administer the claims and review procedures specified in Section
11.03;
 (e)       To compute the amount of benefits which will be payable to any
Participant, former Participant or Beneficiary in accordance with the provisions of the Plan;
 (f)       To determine the person or persons to whom such benefits will be paid;
 (g)      To authorize the payment of benefits;
 (h)      To comply with the reporting and disclosure requirements of Part 1 of Subtitle B of Title I of ERISA;
 (i)       To appoint such agents, counsel, accountants, and consultants as may be required to assist in administering the Plan;
 (j)       By written instrument, to allocate and delegate its responsibilities, including the
formation of an Administrative Committee to administer the Plan;
 11.02.  Nondiscriminatory Exercise of
Authority. Whenever, in the administration of the Plan, any discretionary action by the Administrator is required, the Administrator shall exercise its authority in a nondiscriminatory manner so
that all persons similarly situated will receive substantially the same treatment.
 11.03.  Claims and Review
Procedures.
 (a)       Claims
Procedure. If any person believes he is being denied any rights or benefits under the Plan, such person may file a claim in writing with the Administrator. If any such claim is wholly or partially denied, the Administrator
will notify such person of its decision in writing. Such notification will contain (i) specific reasons for the denial, (ii) specific reference to pertinent Plan provisions, (iii) a description of any additional material or information
necessary for such person to perfect such claim and an explanation of why such material or information is necessary, and (iv) information as to
 

15

  the steps to be taken if the person wishes to submit a request for review. Such notification will be given within 90 days after the claim
is received by the Administrator (or within 180 days, if special circumstances require an extension of time for processing the claim, and if written notice of such extension and circumstances is given to such person within the initial 90-day
period). If such notification is not given within such period, the claim will be considered denied as of the last day of such period and such person may request a review of his claim.
 (b)      Review Procedure. Within 60 days after the date on which a person receives a written notice of a denied claim
(or, if applicable, within 60 days after the date on which such denial is considered to have occurred), such person (or his duly authorized representative) may (i) file a written request with the Administrator for a review of his denied claim and of
pertinent documents and (ii) submit written issues and comments to the Administrator. The Administrator will notify such person of its decision in writing. Such notification will be written in a manner calculated to be understood by such person
and will contain specific reasons for the decision as well as specific references to pertinent Plan provisions. The decision on review will be made within 60 days after the request for review is received by the Administrator (or within 120 days, if
special circumstances require an extension of time for processing the request, such as an election by the Administrator to hold a hearing, and if written notice of such extension and circumstances is given to such person within the initial 60-day
period). If the decision on review is not made within such period, the claim will be considered denied.
 11.04.  Cost of Administration. Unless some or all costs and expenses are paid by the Employer, all reasonable costs and expenses (including legal, accounting, and employee communication fees)
incurred by the Administrator and the Trustee in administering the Plan and Trust will be paid first from the forfeitures (if any) resulting under Section 7.05, then from the remaining Trust Fund. All such costs and expenses paid from the Trust Fund
will, unless allocable to the Accounts of particular Participants, be charged against the Accounts of all Participants on a prorata basis or in such other reasonable manner as may be directed by the Employer.
 
 16

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