Document:

Change of Control Severance Plan

 Exhibit 10.19.2 
  
 OLD DOMINION FREIGHT LINE, INC. 
 CHANGE OF CONTROL SEVERANCE PLAN 
 FOR KEY EXECUTIVES 
  
 ARTICLE 1. PURPOSE. The Company is engaged in the
business of transporting general commodities such as consumer goods and textiles in less-than-truckload shipments. The Company’s key executives are experienced in, and knowledgeable concerning, all aspects of the business of the Company. The
Board recognizes that the possibility of a Change of Control exists and that a threat or the occurrence of a Change of Control can result in significant distractions of the Company’s key executives because of the uncertainties inherent in such
a situation. In addition, the Board has determined that it is essential and in the best interest of the Company and its shareholders to secure the continued services, and to ensure the continued and undivided dedication and objectivity, of the
Company’s key executives in the event of any threat or occurrence of, or negotiation or other action that could lead to, or create the possibility of, a Change of Control. The Compensation Committee of the Board has recommended to the Board
that the Company adopt a change of control severance plan for its key executives. To that end, the Company does hereby adopt and establish, effective as of the Effective Date, the Old Dominion Freight Line, Inc. Change of Control Severance Plan for
Key Executives. The Plan is intended to qualify as a “top-hat” plan under ERISA, in that it is intended to be an “employee pension benefit plan” (as defined in Section 3(2) of ERISA) which is unfunded and provides benefits only
to a select group of management or highly compensated employees of the Company. 
  
 ARTICLE 2. DEFINITIONS. Wherever used in this Plan, including ARTICLE 1 and this ARTICLE 2, the following terms shall have the meanings set forth below (unless otherwise indicated by the
context): 
  
 2.1. “Base Salary”
means, with respect to a Participant, the amount a Participant is entitled to receive from the Company as base wages or base salary on an annualized basis as in effect immediately prior to a Change of Control or, if greater, at any time thereafter,
in each case without reduction for any amounts contributed by the Participant to an employee benefit plan of the Company pursuant to a salary reduction agreement which are not includible in the Participant’s gross income. Base Salary does not
include bonuses, commissions, overtime pay, shift pay, premium pay, cost of living allowances or income from stock options, stock grants, phantom stock awards or other similar types of incentive compensation. 
  
 2.2. “Board” means the Board of Directors
of the Company. 
  
 2.3. “Bonus
Amount” means, with respect to a Participant, the average of the cash bonuses earned by the Participant during the three (3) full calendar years immediately preceding his Termination Date. 

 2.4. “Change of Control” means and will be deemed to have occurred on
the earliest of the following dates which occurs after the Effective Date: 
  
 (a) the date any person or group of persons (as defined in Section 13(d) and 14(d) of the Securities Exchange Act of 1934) together with its affiliates, is or becomes (or publicly discloses that such person or group
is or has become), directly or indirectly, the “beneficial owner” (as defined in Rule 13d-3 promulgated under the Securities Exchange Act of 1934) of securities of the Company representing twenty percent (20%) or more of the combined
voting power of the Company’s then outstanding voting securities, provided, however, that the event described in this subparagraph (a) shall not be deemed to be a Change of Control by virtue of the beneficial ownership, or the acquisition of
beneficial ownership, of voting securities by (i) any Person directly or indirectly controlled by the Company, including any employee benefit plan sponsored or maintained by the Company or by a person controlled by the Company; (ii) any underwriter
(as such term is defined in Section 2(a)(11) of the Securities Act of 1933) that beneficially owns voting securities temporarily in connection with an offering of such securities; (iii) Earl E. Congdon or John R. Congdon, any of their lineal
descendants including adoptive relationships, the spouse of any of the foregoing or any trust established by or for the benefit of the foregoing (unless the Board determines that such beneficial ownership creates a substantial threat to corporate
policy or effectiveness); or (iv) any Participant; or 
  
 (b) the date when for any reason, including but not limited to as a result of a tender offer or exchange offer for the purchase of securities of the Company (other than such an offer by the Company for its own securities), or as a result of
a proxy contest, merger, share exchange, consolidation or sale of assets, or as a result of any combination of the foregoing, individuals who at the beginning of any two-year period constitute the Board, plus new directors whose election or
nomination for election by the Company’s shareholders is approved by a vote of at least two-thirds (2/3) of the directors still in office who were directors at the beginning of such two-year period (“Continuing Directors”), cease for
any reason during such two-year period to constitute at least two-thirds (2/3) of the members of the Board; or 
  
 (c) the date the shareholders of the Company approve a merger, share exchange or consolidation of the Company with any other corporation
or entity regardless of which entity is the survivor, other than a merger, share exchange or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining
outstanding or being converted into voting securities of the surviving or acquiring entity) at least sixty percent (60%) of the combined voting power of the voting securities of the Company or such surviving or acquiring entity outstanding
immediately after such merger or consolidation; or 
  

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 (d) the date the shareholders of the Company approve an agreement for the sale or
disposition by the Company of all or substantially all of the Company’s assets. 
  
 2.5. “Code” means the Internal Revenue Code of 1986, as amended, and rules and regulations issued thereunder. 

 
 2.6. “Company” means Old Dominion
Freight Line, Inc., a Virginia corporation with its principal offices at Thomasville, North Carolina. 
  
 2.7. “Company Welfare Benefit Plans” means the group medical, dental, vision and life insurance plans or programs
(whether insured or self insured, or any combination thereof) provided by the Company for the benefit of its active employees or former employees and their dependents immediately prior to the Change of Control, or if thereafter improved or enhanced,
as of the Participant’s Termination Date. Each such individual plan or program shall be referred to sometimes herein as a “Company Welfare Benefit Plan.” 
  
 2.8. “Committee” means the Compensation Committee of the Board. 
  
 2.9. “Compensation Continuance Period”
means twelve (12) calendar months plus three (3) additional calendar months for each Year of Service the Participant has completed as of his Termination Date in excess of ten (10) Years of Service; provided, however, in no event shall the
Compensation Continuance Period exceed thirty-six (36) calendar months. The Compensation Continuance Period shall commence on the first day of the calendar month next following the calendar month in which the Termination Date occurs. 
  
 2.10. “Compensation Continuance Termination
Event” means the termination of a Participant’s employment by the Company for any reason other than For Cause, death or Total Disability, or by the Participant for Good Reason. 
  
 2.11. “Confidential Information” means all
information concerning the business of the Company and its affiliates that is confidential, proprietary or otherwise not generally available to the public. By way of example, Confidential Information includes, without limitation, all
competitively-sensitive information, all trade secrets, processes, specifications, data, files, computer programs and related codes, software, improvements, inventions, techniques, business plans, marketing plans, strategies, acquisition prospects,
forecasts, methods, manner of operations, information relating to past, present and prospective customers and clients, pricing and cost information, other financial information, employee lists, personnel policies, contracts, digital intellectual
property, information with respect to internal affairs, and all information covered by the Trade Secrets Protection Act, N.C. Gen. Stat., Chapter 661 §§152-162. The parties expressly agree that Confidential Information does not exist in
written form only. Notwithstanding the foregoing, “Confidential Information” does not include information that (i) is or becomes generally available to the public other than as a result of a disclosure by the Participant in violation of
the provisions of the Plan, or (ii) is received by the Participant from another party that did not receive such information directly or indirectly from the Company or any of its affiliates under an obligation of confidentiality. 
  

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 2.12. “Effective Date” means May 16, 2005, the date this Plan was
approved by the Board. 
  
 2.13.
“Eligible Key Executive” means each employee of the Company who is designated on the books and records of the Company as either a Senior Vice President or a Vice President and who is determined by the Committee to be a management or
highly compensated employee of the Company. An individual will be treated as an employee of the Company if there exists between the individual and the Company the legal and bonafide relationship of employer and employee. 
  
 2.14. “ERISA” means the Employee Retirement
Income Security Act of 1974, as amended, and rules and regulations issued thereunder. 
  
 2.15. “Excise Tax” means the excise tax on excess parachute payments under Section 4999 of the Code (or any successor or
similar provision thereof), including any interest or penalties with respect to such excise tax. 
  
 2.16. “Extended Coverage Period” means the period commencing on the Participant’s Termination Date and ending on the
earlier of the date of the Participant’s death or the last day of the calendar month in which he receives his final payment of Termination Compensation. 
  

2.17. “For Cause” means one or more of the following, in each case as determined by the Company in its sole
discretion: (i) the Participant’s conviction by a court of competent jurisdiction of, or pleading “guilty” or “no contest” to, theft, fraud or embezzlement from the Company; (ii) the Participant’s conviction by a court
of competent jurisdiction of, or pleading “guilty” or “no contest” to, a felony which constitutes a crime involving moral turpitude and results in material harm to the Company; (iii) willful and continued failure by the
Participant to substantially perform his duties on behalf of the Company (other than any such failure resulting from the Participant’s Total Disability or any such actual or anticipated failure after the issuance of a Notice of Termination for
Good Reason by the Participant pursuant to ARTICLE 6) for a period of at least thirty (30) consecutive days after a written demand for substantial performance has been delivered to the Participant by the Responsible Person (as defined below) which
specifically identifies the manner in which the Responsible Person believes that the Participant has not substantially performed the Participant’s duties; (iv) willful misconduct or gross negligence by the Participant which is injurious to the
Company; or (v) any diversion by the Participant for his personal gain of any clearly viable and significant business opportunity from the Company (other than with the prior written consent of the Board). For purposes of this Section 2.17, an act,
or failure to act, on the Participant’s part shall not be deemed “willful” if done, or omitted to be done, by the Participant in good faith and with reasonable belief that the Participant’s act, or failure to act, was in the best
interest of the Company, and “Responsible Person” shall mean, with respect to a Participant who is a Senior Vice President, the Chief Executive Officer of the 
  

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 Company, and with respect to a Participant who is a Vice President, the executive officer of the Company
who is the direct or indirect supervisor of the Participant. The unwillingness of a Participant to accept any condition or event which would otherwise constitute Good Reason may not be considered by the Responsible Person to be a failure by the
Participant to substantially perform his duties on behalf of the Company. 
  
 2.18. “Good Reason” means, without the Participant’s express written consent, any of the following: 
  
 (a) the reduction by the Company in the Participant’s Base Salary as in effect immediately prior to the Change of Control or as the
same may be increased from time to time following the Change of Control, or a reduction in the level of the Participant’s opportunity to earn bonuses under the bonus and incentive plans and programs of the Company (including a reduction in the
percentage of net profits before taxes assigned to the Participant under the Company’s XPS plan) as in effect immediately prior to the Change of Control (or as such amounts may be increased from time to time) other than as a result of an
isolated, insubstantial and inadvertent action not taken in bad faith and which is promptly remedied by the Company after receipt of notice thereof given by the Participant; 
  
 (b) the failure of the Company to obtain a satisfactory agreement from any successor to assume and agree to
perform all of the duties and obligations of the Company under this Plan, as required by ARTICLE 15; 
  
 (c) the assignment to the Participant of any duties inconsistent in any respect with the Participant’s position (including status,
offices, titles and reporting requirements), authority, duties or responsibilities immediately prior to the Change of Control or any other action by the Company which results in significant diminution in such position, authority, duties or
responsibilities, excluding for this purpose an isolated, insubstantial and inadvertent action not taken in bad faith and which is promptly remedied by the Company after receipt of notice thereof given by the Participant; 
  
 (d) the exclusion of the Participant from participation in
the Company’s employee benefit and incentive compensation plans (by termination of the plan or otherwise) in effect immediately prior to the Change of Control (as the same may be improved or enhanced from time to time) unless an equitable
arrangement (embodied in an ongoing substitute or alternative plan or program) has been made with respect to the Participant’s participation in such employee benefit or incentive compensation plan; 
  
 (e) the transfer of the Participant’s primary work
location to a location that is more than thirty (30) miles from the Participant’s primary work location immediately prior to the date of the Change of Control or the requirement that the Participant relocate his principal residence more than
thirty (30) miles from the Participant’s primary work location immediately prior to the date of the Change of Control; or 
  

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 (f) the requirement by the Company that the Participant travel on Company business to a
substantially greater extent than required immediately prior to the date of the Change of Control. 
  
 Notwithstanding the foregoing, the occurrence of an event that would otherwise constitute Good Reason hereunder shall cease to be an event constituting
Good Reason if the Participant fails to provide the Company with notice of the occurrence of any of the foregoing within the 180-day period immediately following the date on which the Participant first becomes aware (or reasonably should have become
aware) of the occurrence of such event. 
  
 2.19. “Participant” means each Eligible Key Executive who has been selected to participate in the Plan pursuant to ARTICLE 3. 
  
 2.20. “Person” means any individual, partnership, joint venture, corporation, company, firm, group or other entity.

  
 2.21. “Plan” means the Old
Dominion Freight Line, Inc. Change of Control Severance Plan for Key Executives as herein set out, or as duly amended. 
  
 2.22. “Severance Benefits” means the severance benefits, including Termination Compensation, described in ARTICLE 4.

  
 2.23. “Termination
Compensation” means an annual amount equal to the sum of the Participant’s Base Salary and Bonus Amount. If the Executive’s termination of employment occurs within twelve (12) months of a Change of Control, his Severance Benefits,
if any, shall be based on 100% of his Termination Compensation. If his termination of employment occurs within thirteen (13) to twenty-four (24) months of a Change of Control, his Severance Benefits, if any, shall be based on 2/3 of his Termination
Compensation, and if his termination of employment occurs within twenty-five (25) to thirty-six (36) months of a Change of Control, his Severance Benefits, if any, shall be based on 1/3 of his Termination Compensation. “Monthly Termination
Compensation” means the Participant’s Termination Compensation as determined pursuant to this Section 2.23 divided by twelve (12). 
  
 2.24. “Termination Date” means the date the Participant’s employment with the Company is terminated for any reason.

  
 2.25. “Total Disability”
means a condition for which the Participant is determined to be disabled under the Company’s long-term disability plan as in effect as of the Effective Date or as the same may be amended from time to time. 
  
 2.26. “Years of Service” means, with
respect to a Participant, each consecutive 365-day period within the period of Continuous Service (as defined below), measured from the most recent beginning date of employment of the Participant as a full-time employee of the Company.
“Continuous Service” means the period of continuous, unbroken full-time employment of the Participant (including for this purpose, vacation 
  

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 leave, sick leave, approved leaves of absence, leaves of absence due to disability, leaves of absence due
to workers compensation related injuries, family and medical leave, and any other days off in accordance with the Company’s benefit programs and policies) commencing with his most recent beginning date of employment and ending on his
Termination Date. Only whole Years of Service are taken into account for purposes of the Plan. Partial Years of Service shall be ignored. 
  
 ARTICLE 3. ELIGIBILITY AND PARTICIPATION. 
  
 3.1. Commencement of Participation. An individual shall be eligible to participate in the Plan if he
is an Eligible Key Executive and is selected by the Committee to participate in the Plan. Each Participant’s participation in the Plan shall become effective as of the date he is selected to participate in accordance with the provisions of this
ARTICLE 3. 
  
 3.2. Duration of
Participation. A Participant shall cease to be a Participant in the Plan (i) if, prior to a Change of Control (but subject to the provisions ARTICLES 4 and 21) he ceases to be an Eligible Key Executive and has received written notice of his
change of status from the Company, or (ii) his employment is terminated under circumstances that do not entitle him to receive Severance Benefits under the Plan. A Participant who becomes entitled to receive Severance Benefits under the Plan shall
remain a Participant in the Plan until the full amount of such Severance Benefits has been paid to him in accordance with the terms of the Plan. 
  
 ARTICLE 4. SEVERANCE BENEFITS. 
  
 4.1. Entitlement; Amount of Severance Benefits. Subject to Sections 4.2, 4.3 and 4.4, in the event the Participant’s
employment is terminated as a result of a Compensation Continuance Termination Event and such Compensation Continuance Termination Event occurs within thirty-six (36) months following a Change of Control, the Participant shall be
entitled to receive the following Severance Benefits: 
  
 (i) The Participant shall continue to receive his Base Salary through the last day of the month in which his Termination Date occurs. 
  
 (ii) The Participant shall receive each month during the Compensation Continuance Period a monthly benefit equal to his Monthly
Termination Compensation. The Participant’s Monthly Termination Compensation shall be paid in accordance with the payroll schedule for salaried personnel of the Company. 
  
 (iii) The Participant shall continue to participate (treating the Participant as an “active
employee” of the Company for this purpose) in the Company Welfare Benefit Plans during the Extended Coverage Period; provided, that, if the Participant for whatever reason cannot continue to a participate in a Company Welfare Benefit Plan, the
Company shall otherwise provide the benefits provided by such Company Welfare Benefit Plan on the same after-tax basis as if 
  

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 continued participation had been permitted. The cost to the Participant for coverage of the Participant
and his dependents under each Company Welfare Benefit Plan for the Extended Coverage Period shall be the same as is applicable to similarly situated active employees of the Company during the Extended Coverage Period. The Participant shall be
required to enroll under any applicable federal or state government programs (e.g., Medicare or Medicaid) in order to receive the coverage provided for under this subparagraph (iii). 
  
 In no event shall any Severance Benefits be paid to the Participant in the
event the Participant’s employment is terminated by the Company For Cause, on account of the Participant’s death or Total Disability, or by the Participant for any reason other than Good Reason, or as a result of a Compensation Continuance
Termination Event that occurs more than thirty-six (36) months following a Change of Control. 
  
 4.2. Release of Claims. No Severance Benefits shall be provided to a Participant unless the Participant has properly executed and
delivered to the Company a release of claims and that release of claims has become irrevocable as provided therein. Such release of claims shall not be accepted by the Company unless it is executed on or after the Participant’s Termination
Date. The initial release of claims is attached to this Plan as Exhibit A. Prior to the occurrence of a Change of Control, but subject to Section 21.2, the release of claims may be revised by the Company. The Company may in any event modify the
release of claims to conform it to the laws of the local jurisdiction applicable to a Participant so long as such modification does not increase the obligations of the Participant thereunder. 
  
 4.3. Anticipated Change of Control. Notwithstanding
the provisions of Section 4.1, if (i) the Participant’s employment is terminated prior to a Change of Control as a result of a Compensation Continuance Termination Event and the Participant would have been entitled to receive Severance Benefits
had the Compensation Continuance Termination Event occurred within thirty-six (36) months following a Change of Control, and (ii) the Participant reasonably demonstrates that such termination was at the request or suggestion of the Company’s
then existing senior management team, the Board or a third party and such termination occurred after any steps reasonably calculated to effect a Change of Control have been taken, then for purposes of the Plan, such Compensation Continuance
Termination Event shall be deemed to have occurred immediately after such Change of Control, so long as such Change of Control actually occurs. 
  
 4.4. Exclusive Payments. The Severance Benefits are intended to constitute the exclusive payments in the nature of severance or
termination compensation that shall be due a Participant upon termination of employment due to the occurrence of a Compensation Continuance Termination Event following a Change of Control, and shall be in lieu of any such other severance or
termination compensation under any other agreement, plan, program or policy of the Company. Accordingly, if a Participant is a party to an employment, severance, termination, salary continuation or other similar agreement with the Company, or is a
participant in any other severance plan, practice or policy of the Company, the Severance Benefits to which the Participant is entitled under 
  

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 this Plan shall be reduced (but not below zero) by the amount of severance pay to which he is entitled
under such other agreement, plan, practice or policy; provided that the reduction set forth in this sentence shall not apply as to any other such agreement, plan, practice or policy that contains a reduction provision substantially similar to this
Section 4.4 so long as the reduction provision of such other agreement, plan, practice or policy is applied. 
  
 ARTICLE 5. DEATH FOLLOWING TERMINATION OF EMPLOYMENT AND BEFORE RECEIPT OF ANY OR ALL SEVERANCE BENEFITS DUE. In the event the
Participant becomes entitled to receive Severance Benefits, and he dies prior to receiving any or all of the Severance Benefits to which he is due, then such remaining payments shall be made to the beneficiary or beneficiaries (which may include
individuals, trusts or other legal entities) designated by the Participant on the form attached hereto as Exhibit B and filed with the Plan Administrator prior to his death (the “Beneficiary Designation Form”). If the Participant fails to
designate a beneficiary or fails to file the Beneficiary Designation Form with the Plan Administrator prior to his death, the remaining payments shall be made to his estate. If a named beneficiary entitled to receive payments pursuant to the
Beneficiary Designation Form dies at a time when additional payments still remain to be paid, then and in any such event, such remaining payments shall be paid to the other primary beneficiary or beneficiaries named by the Participant who shall then
be living or in existence, if any, otherwise to the contingent beneficiary or beneficiaries named by the Participant who shall then be living or in existence, if any; otherwise to the estate of the Participant. 
  
 ARTICLE 6. NOTICE OF TERMINATION OF EMPLOYMENT. A
termination of a Participant’s employment by the Company or by the Participant for any reason other than death shall be communicated to the other by a Notice of Termination which shall specify the effective date of termination and shall set
forth in reasonable detail the reasons and basis for such termination. No purported termination of employment of a Participant shall be effective for purposes of the Plan without a Notice of Termination being given as required by this ARTICLE 6.

  
 ARTICLE 7. POST-TERMINATION
OBLIGATIONS. All payments of Severance Benefits to the Participant under this Plan shall be subject to the Participant’s compliance with the following provisions during the Participant’s employment with the Company and, except as
otherwise provided in this ARTICLE 7, following the termination of the Participant’s employment: 
  
 7.1. Assistance in Litigation. The Participant shall, upon reasonable notice, furnish such information and assistance to the
Company as may reasonably be required by the Company in connection with any litigation in which it is, or may become, a party, and which arises out of facts and circumstances known to the Participant. The Company shall promptly reimburse the
Participant for his out-of-pocket expenses incurred in connection with the fulfillment of his obligations under this Section 7.1. 
  
 7.2. Confidential Information. The Participant acknowledges that all Confidential Information has a commercial value in the
Company’s Business and is the 
  

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 sole property of the Company. The Participant agrees that he shall not disclose or reveal, directly or
indirectly, to any unauthorized person any Confidential Information, and the Participant confirms that such information constitutes the exclusive property of the Company; provided, however, that the foregoing shall not prohibit the Participant from
disclosing such information to third parties or governmental agencies in furtherance of the interests of the Company or as may be required by law. 
  
 7.3. Failure to Comply. In the event that the Participant shall fail to comply with any provision of this ARTICLE 7, and such
failure shall continue for ten (10) days following delivery of notice thereof by the Company to the Participant, all rights of the Participant and any person claiming under or through him to the Severance Benefits shall thereupon terminate and no
person shall be entitled thereafter to receive any payments or benefits hereunder. In addition to the foregoing, in the event of a breach by the Participant of the provisions of this ARTICLE 7, the Company shall have and may exercise any and all
other rights and remedies available to the Company at law or otherwise, including but not limited to obtaining an injunction from a court of competent jurisdiction enjoining and restraining the Participant from committing such violation, and the
Participant hereby consents to the issuance of such injunction. 
  
 ARTICLE 8. PARACHUTE PAYMENTS. Notwithstanding anything in this Plan to the contrary, in the event that the Company’s outside, independent accountants shall determine that any amount or benefit in the nature
of compensation paid or payable or distributed or distributable to the Participant pursuant to this Plan (the “Plan Payments”) shall, as a result of a change in the ownership or effective control of the Company or in the ownership of a
substantial portion of the assets of the Company, constitute a parachute payment within the meaning of Section 280G of the Code, and the aggregate of such parachute payments and any other amounts paid or distributed to the Participant from any other
plans or arrangements maintained by the Company or its affiliates (such other payments together with the Plan Payments shall be referred to as the “Total Payments”) would more likely than not, in the opinion of the Company’s
accountants, cause the Participant to be subject to the Excise Tax, the Plan Payments shall be reduced in such amounts as are required to reduce the aggregate “present value” (as that term is defined in Section 280G(d)(4) of the Code) of
such Plan Payments to one dollar less than an amount equal to three times the Participant’s “base amount” (as that term is defined in Section 280G(b)(3)(A) and (d)(1) and (2)) to the end that the Participant is not subject to the
Excise Tax with respect to the Plan Payments. To achieve such required reduction in the aggregate present value, the Company shall determine what items of compensation (payable under this Plan) constituting the parachute payments shall be reduced
and the amount of such reduction. The Company shall promptly notify the Participant of its determinations. If an amount has been paid or distributed to the Participant which should not have been paid or distributed due to the required reduction in
aggregate present value, the Participant shall promptly return such amount to the Company (together with interest at the rate set forth in Section 1274(b)(2)(B) of the Code). For purposes of determining whether and the extent to which the Total
Payments would more likely than not cause the Participant to be subject to the Excise Tax, no portion of the Total Payments, the receipt of which the Participant has effectively waived in writing, shall be taken into account. 
  

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 ARTICLE 9. ATTORNEYS’ FEES. In the event that the Participant incurs any
attorneys’ fees in protecting or enforcing his rights under this Plan, the Company shall reimburse the Participant for such reasonable attorneys’ fees and for any other reasonable expenses related thereto. Such reimbursement shall be made
within thirty (30) days following final resolution of the dispute or occurrence giving rise to such fees and expenses. In no event shall the Participant be entitled to receive the reimbursement provided for in this ARTICLE 9 in the event his
employment is terminated by the Company For Cause. 
  
 ARTICLE 10. SOURCE OF PAYMENTS; NO TRUST. The obligations of the Company to make payments hereunder shall constitute a liability of the Company to the Participant. Such payments shall be from the general funds of
the Company, and the Company shall not be required to establish or maintain any special or separate fund, or otherwise to segregate assets to assure that such payments shall be made, and neither the Participant nor his designated beneficiary shall
have any interest in any particular asset of the Company by reason of its obligations hereunder. Nothing contained in this Plan shall create or be construed as creating a trust of any kind or any other fiduciary relationship between the Company and
the Participant or any other person. To the extent that any person acquires a right to receive payments from the Company hereunder, such right shall be no greater than the right of an unsecured creditor of the Company. 
  
 ARTICLE 11. SEVERABILITY. All agreements and
covenants contained herein are severable, and in the event any of them shall be held to be invalid by any competent court, this Plan shall be interpreted as if such invalid agreements or covenants were not contained herein. 
  
 ARTICLE 12. NO ATTACHMENT. Except as otherwise
provided in this Plan or required by applicable law, no right to receive payments under this Plan shall be subject to anticipation, commutation, alienation, sale, assignment, encumbrance, charge, pledge or hypothecation or to execution, attachment,
levy, or similar process or assignment by operation of law, and any attempt, voluntary or involuntary, to effect any such action shall be null, void and of no effect. 
  
 ARTICLE 13. HEADINGS. The headings of articles, paragraphs and sections herein are included
solely for convenience of reference and shall not control the meaning or interpretation of any of the provisions of this Plan. 
  
 ARTICLE 14. GOVERNING LAW. The Plan and the performance hereunder and all suits and special proceedings hereunder shall be
governed by and construed in accordance with and under and pursuant to the laws of the State of North Carolina without regard to conflicts of law principles thereof, except as superseded by applicable federal law. 
  
 ARTICLE 15. SUCCESSORS. The Plan shall bind any
successor of or to the Company, the Company’s assets or the Company’s businesses (whether direct or indirect, by purchase of such assets or businesses, merger, consolidation or otherwise), in the same manner and to the same extent that the
Company would be obligated under the Plan if no succession had taken place. In the case of any transaction in which a successor would not by the foregoing provision or by operation of law be bound by the Plan, the Company shall require such
successor 
  

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 expressly and unconditionally to assume and agree to perform the Company’s obligations under the Plan, in the same
manner and to the same extent that the Company would be required to perform if no such succession had taken place. The term “Company,” as used in the Plan, shall mean the Company as hereinbefore defined and any successor or assignee to the
business or assets which by reason hereof becomes bound by the Plan. The Plan shall bind the Participants, their executors, administrators, personal representatives and beneficiaries. 
  
 ARTICLE 16. TAXES. To the extent required by applicable law, the Company shall deduct and
withhold all necessary Social Security taxes and all necessary federal and state withholding taxes and any other similar sums required by law to be withheld from any payments of Severance Benefits made pursuant to the terms of the Plan. 

 
 ARTICLE 17. MITIGATION. The Participant shall
not be required to mitigate the amount of any payment provided for in ARTICLE 4 by seeking other employment or otherwise, and, subject to the provisions of ARTICLES 7 and 8, any payment or benefit to be provided to the Participant pursuant to this
Agreement shall not be reduced by any compensation or other amount earned or collected by the Participant at any time before or after the termination of the Participant’s employment. 
  
 ARTICLE 18. COMPLIANCE WITH SECTION 409A. To the extent applicable, the Company intends that the Plan
comply with Section 409A of the Code and all regulations, guidance, or other interpretative authority thereunder (“Section 409A”). The Plan shall at all times be construed in a manner to comply with Section 409A and should any provision be
found not in compliance with Section 409A, the Plan shall be amended as recommended by legal counsel for the Company to achieve compliance with Section 409A. In no event shall any payment required to be made pursuant to the Plan that is considered
deferred compensation within the meaning of Section 409A be made to the Participant unless he has incurred a separation from service (as defined in Section 409A). In the event the Participant is a key employee (as defined in Section 416(i) of the
Code without regard to paragraph (5) thereof) so that payments cannot commence under Section 409A until the lapse of six (6) months after a separation from service, then any such payments of deferred compensation that are required to be paid in a
single lump sum may not be made until the date which is six (6) months after the Participant’s separation from service. Furthermore, the first six (6) months of any such payments of deferred compensation that are required to be paid in
installments shall be paid at the beginning of the seventh month following the Participant’s separation from service. All remaining installment payments shall be made as would ordinarily have been made under the provisions of the Plan.

  
 ARTICLE 19. NO RIGHT TO CONTINUED
EMPLOYMENT. Under no circumstances shall the terms of the Plan constitute a contract of continuing employment or in any manner obligate the Company to continue or discontinue the employment of the Participant, or to change the policies of
the Company regarding termination of employment. 
  
 ARTICLE
20. ERISA REQUIREMENTS. 
  
 20.1. Named Fiduciaries. For purposes of ERISA, the Committee will be the Named Fiduciary and Plan Administrator with respect to the Plan. The Plan 
  

 12 

 Administrator shall be responsible for the general administration, operation and interpretation of the
Plan and for carrying out its provisions, except to the extent all or any such obligations specifically are imposed on another person or persons or entity. The Plan Administrator may engage an actuary, attorney, accountant, insurance company or
similar entity, consultant or any other technical advisor on matters regarding the operation of the Plan and to assist in the administration of the Plan, and to perform such other duties as are required in connection therewith. The Plan
Administrator may allocate its responsibilities for the operation and administration of the Plan, including the designation of persons who are not named fiduciaries to carry out fiduciary responsibilities under the Plan. The Plan Administrator shall
effect such allocation of its responsibilities by adopting resolutions specifying the nature and extent of the responsibilities allocated; including, if appropriate, the persons who are not named fiduciaries, but who are designated to carry out
fiduciary responsibilities under the Plan. Subject to the claims procedures set forth in Section 20.2 hereof, and except as otherwise provided in this ARTICLE 20, the Plan Administrator shall have the duty and discretionary authority to interpret
and construe the provisions of the Plan and decide any dispute which may arise regarding the rights of the Plan Administrator or the Participant. Determinations by the Plan Administrator shall be binding and conclusive upon all interested persons.
The Plan shall be administered and the records of the Plan shall be maintained on the basis of the plan year. The plan year shall be the twelve-month period ending on December 31 of each year. 
  
 20.2. Claims and Review Procedures. The following
claims procedure shall apply for purposes of the Plan. The Participant and his assigns (if any) and the Company and its assigns (individually or collectively, “Claimant”) must follow the procedures set forth herein. 
  
 20.2.1 Filing a Claim; Notification to Claimant of Decision:
The Claimant shall make a claim in writing in accordance with procedures and guidelines established from time to time by the Plan Administrator, which claim shall be delivered to the Plan Administrator. Any claim for Severance Benefits must be made
by the Claimant within the one-year period following his Termination Date. The Plan Administrator shall review and make the decision with respect to any claim. If a claim is denied in whole or in part, written notice thereof shall be furnished to
the Claimant within thirty (30) days after the claim has been filed. Such notice shall set forth: 
  

	 	(i)	the specific reason or reasons for the denial; 

  

	 	(ii)	a specific reference to the provisions of the Plan on which denial is based; 

  

	 	(iii)	a description of any additional material or information necessary for the Claimant to perfect a claim and an explanation of why such material or information is necessary; and

  

	 	(iv)	an explanation of the procedure for review of the denied claim. 

  

 13 

 20.2.2 Procedure for Review: Any Claimant whose claim has been denied in full or in part
may individually, or through the Claimant’s duly authorized representative, request a review of the claim denial by delivering a written application for review to the Board at any time within sixty (60) days after receipt by the Claimant of
written notice of the denial of the claim. Such request shall set forth in reasonable detail: 
  

	 	(i)	the grounds upon which the request for review is based and any facts in support thereof; and 

  

	 	(ii)	any issues or comments which the Claimant considers pertinent to the claim. 

  

Following such request for review, the Board shall fully and fairly review the decision denying the claim. Prior to the decision of the Board, the
Claimant shall be given an opportunity to review pertinent documents. 
  
 20.2.3 Decision on Review: A decision on the review of a claim denied in whole or in part shall be made in the following manner: 
  

	 	(i)	The decision on review shall be made by the Board, which shall consider the application and any written materials submitted by the Claimant in connection therewith. The Board, in
its sole discretion, may require the Claimant to submit such additional documents or evidence as the Board may deem necessary or advisable in making such review. 

  

	 	(ii)	The Board shall render a decision upon a review of a denied claim within sixty (60) days after receipt of a request for review. If special circumstances (such as the need to hold a
hearing on any matter pertaining to the denied claim) warrant additional time, the decision will be rendered as soon as possible, but not later than one hundred twenty (120) days after receipt of a request for review. Written notice of any such
extension will be furnished to the Claimant prior to the commencement of the extension. 

  

	 	(iii)	The decision on review shall be in writing and shall include specific reasons for the decision, written in a manner calculated to be understood by the Claimant, and the specific
references to the provisions of the Plan on which the decision is based. The decision of the Board on review shall be final and conclusive upon all persons. If the decision on review is not furnished to the Claimant within the time limits prescribed
in subparagraph (ii) above, the claim will be deemed denied on review. 

  

 14 

 ARTICLE 21. DURATION, AMENDMENT AND PLAN TERMINATION. 
  
 21.1. Duration. This Plan shall continue in effect
until terminated in accordance with Section 21.2. If a Change in Control occurs, this Plan shall continue in full force and effect and shall not terminate or expire until after all Participants who have become entitled to Severance Benefits
hereunder shall have received such payments in full. 
  
 21.2. Amendment and Termination. Prior to a Change in Control, the Plan may be amended or modified in any respect, and may be terminated, in any such cases by resolution adopted by two-thirds (2/3) of the members of the Board;
provided, however, that no such amendment, modification or termination that would adversely affect the benefits or protections hereunder of any individual who is a Participant as of the date such amendment, modification or termination is adopted
shall be effective as it relates to such individual unless no Change of Control occurs within one year after such adoption, any such attempted amendment, modification or termination adopted within one year prior to a Change of Control being null and
void ab initio as it relates to all such individuals who were Participants prior to such adoption; provided, further, however, that the Plan may not be amended, modified or terminated, (i) at the request of a third party who has indicated an
intention or taken steps to effect a Change of Control and who effectuates a Change of Control or (ii) otherwise in connection with, or in anticipation of, a Change of Control which actually occurs, any such attempted amendment, modification or
termination being null and void ab initio. Any action taken to amend, modify or terminate the Plan which is taken after the execution of an agreement providing for a transaction or transactions which, if consummated, would constitute a Change
of Control shall conclusively be presumed to have been taken in connection with a Change of Control. From and after the occurrence of a Change of Control, the Plan may not be amended or modified in any manner that would in any way adversely affect
the benefits or protections provided hereunder to any individual who is a Participant in the Plan on the date of the Change of Control. The revision of the release of claims attached hereto as Exhibit A shall be deemed to be a modification of the
Plan for purposes of this Section 21.2 unless such revision is required to comply with applicable law. 
  
 ARTICLE 22. NO EFFECT ON OTHER BENEFITS. Severance Benefits payable to a Participant shall not be counted as compensation for
purposes of determining benefits under any other benefit plans, programs or policies of the Company, except to the extent expressly provided for therein. 
  
 ARTICLE 23. RIGHT OF OFFSET. Notwithstanding any other provision of the Plan to the contrary, the Company may reduce the
amount of any payment or benefit otherwise payable to or on behalf of a Participant by the amount of any obligation of the Participant to or on behalf of the Company that is or becomes due and payable, including, without limitation, any obligation
arising under the Sarbanes-Oxley Act of 2002, and the Participant shall be deemed to have consented to such reduction. 
  

 15 

 IN WITNESS WHEREOF, this Plan is executed in behalf of the Company as of the 16th day of May, 2005. 
  

							
	 	 	 	 	OLD DOMINION FREIGHT LINE, INC.
				
	 	 	 	 	By:	 	 /s/ David S. Congdon

	Attest:	 	 	 	 	 	President
				
	 /s/ Joel B. McCarty, Jr.

	 	 	 	 	 	 
	Secretary/Asst. Secretary	 	 	 	 	 	 

  

 16 

 EXHIBIT A 
  

RELEASE OF CLAIMS 
  
 OLD DOMINION FREIGHT LINE, INC. 
  
 CHANGE OF CONTROL SEVERANCE PLAN 
 FOR

 KEY EXECUTIVES 
  
 GENERAL RELEASE 
  
 In consideration of the provision by Old Dominion Freight Line, Inc. (“ODFL”) of severance pay and benefits to me pursuant to that certain Old
Dominion Freight Line, Inc. Change of Control Severance Plan for Key Executives dated May 16, 2005 (the “Plan”), I, as a participant in the Plan and in accordance with its terms, agree to and do finally and completely release ODFL, and any
one or more of its employees, shareholders, officers, directors or agents (“Releasees”) from any and all liability and claims, of any nature whatsoever, known or unknown, at law or in equity, which I now have, own or hold, or claim to
have, own or hold, or which I may have, own, or hold, or claim to have, own or hold, against each or any of the Releasees. Without limiting the generality of the foregoing release, I release Releasees from any and all liability and claims relating
in any way to compensation and benefits and related to or resulting from the cessation of my employment with ODFL including, but not limited to, claims arising under any provision of state, federal or local law, any state or local
anti-discrimination statute, ordinance or regulation, the Age Discrimination in Employment Act, the Americans with Disabilities Act, the Family and Medical Leave Act, Title VII of the Civil Rights Act of 1964, or the Employee Retirement Income
Security Act (with respect only to a period of unemployment during which I am eligible to receive severance pay under the Plan), all as amended, or any similar federal, state, or local statutes, ordinances or regulations, or claims in the nature of
a breach of contract or wrongful termination action; provided, however, that this General Release does not include actions brought to enforce the terms of the Plan or to secure benefits under any other employee benefit plan or program of ODFL. If I
violate the terms of this General Release, I agree to pay the Releasee’s costs and reasonable attorneys’ fees. 
  
 As provided by law, I have been advised by ODFL to carefully consider the matters outlined in this release and to consult with such professional advisors
as I deem appropriate, including a lawyer of my own choice. I acknowledge I have had at least twenty-one (21) days to consider the subject matter of this offer, and for a period of seven (7) days following my execution of this release I may revoke
my agreement in writing, in which event the agreement shall not be effective or binding on the parties. I further understand fully and acknowledge the terms and consequences of this General Release and I voluntarily accept them. 

					
	ACKNOWLEDGED AND AGREED TO,
	INTENDING TO BE LEGALLY BOUND HEREBY:
			
	Dated:	 	  

	 	  

	 	 	 	 	Employee/Participant

  

 2 

 EXHIBIT B 
  

BENEFICIARY DESIGNATION 
  
 OLD DOMINION FREIGHT LINE, INC. 
  
 Subject to and in accordance with the provisions of ARTICLE 5 of the OLD DOMINION FREIGHT LINE, INC. CHANGE OF CONTROL SEVERANCE PLAN FOR KEY EXECUTIVES
(the “Plan”), the Participant hereby designates the following beneficiary(ies) entitled, upon the death of the Participant, to any termination compensation and other severance benefits payable under ARTICLE 5 of the Plan following his
death (the “death benefit”): 
  

							
	(A)	  	Primary Beneficiary(ies): In equal shares to those of the following beneficiary(ies) who are living or in existence at the Participant’s death:
				
	 	  	 Name

	  	 Relationship

	  	 Address

		
	(B)	  	Contingent Beneficiary(ies): If there is no primary beneficiary living or in existence at the Participant’s death, then in equal shares to those of the following
beneficiary(ies) who are living or in existence at the Participant’s death:
				
	 	  	 Name

	  	 Relationship

	  	 Address

  
 **************************************************** 
  
 This Beneficiary Designation Form supersedes and revokes all beneficiary designations, if any, previously made by the Participant but is not intended to, and does not, supercede or revoke any of the provisions of ARTICLE 5 of the Plan.

  
 This Beneficiary Designation Form may be changed by executing
and delivering a new designation to the Plan Administrator. 

 This Beneficiary Designation Form is signed in duplicate, and one executed copy shall be retained by the
Plan Administrator and one shall be retained by the Participant. 
  

							
	DATED:	 	 	 	 	 	 
	  

	 	 	 	 	 	  

			
	DATED:	 	 	 	PLAN ADMINISTRATOR
				
	  

	 	 	 	By:	 	  

  

 2ADTRAN, Inc. 2005 Directors Stock Option Plan

 Exhibit 10.1 
  
 ADTRAN, INC. 
  
 2005 DIRECTORS STOCK OPTION PLAN 
  
 ARTICLE I 
 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. 
  
 1.2 Intended Tax Effects of
Options. It is intended that the tax effects of any Option granted hereunder should be determined under Code §83. 
  
 ARTICLE II 
 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 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 Optionee’s spouse, or if none, the
Optionee’s estate. 
  

 1 

 (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 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 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 or its parents or subsidiaries, the breach of any contract with the Company or its parents or subsidiaries, 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 or its parents or subsidiaries, a felony conviction or the failure to contest prosecution for a felony, embezzlement, fraud,
deceit or civil rights violations, any of which acts cause 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

  

 2 

 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). 
  
 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 III 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. 
  
 2.11 Director shall mean an individual who is serving as a member of the Board (i.e., a director 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 May 18, 2005, subject to shareholder approval. See Article IX herein. 
  
 2.14 Fair Market Value of the Common Stock as of a date of
determination shall mean the following: 
  
 (a)
Stock Listed and Shares Traded. If the Common Stock is listed and traded on a national securities exchange (as such term is defined by the 1934 Act) or on The Nasdaq Stock Market (“Nasdaq”) on the date of determination, the Fair
Market Value per share shall be the closing price of a share of the Common Stock on said national securities exchange or Nasdaq 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 Nasdaq and 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 and 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. 
  

 3 

 (c) Stock Not Listed. If the Common Stock is not listed on a national securities
exchange or on Nasdaq 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 Option shall mean options to which Code §421 (relating generally to certain incentive stock options and
other options) does not apply, granted to individuals pursuant to the terms and provisions of this Plan. 
  
 2.16 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. 
  
 2.17 Option Price shall mean the purchase price of the shares of Common Stock underlying an Option. 
  
 2.18 Optionee shall mean an individual who is granted an Option
pursuant to the terms and provisions of this Plan. 
  
 2.19
Person shall mean any individual, organization, corporation, partnership, trust or other entity. 
  
 2.20 Plan shall mean this ADTRAN, Inc. 2005 Directors Stock Option Plan. 
  
 ARTICLE III 
 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 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. 
  

 4 

 3.3 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 IV 
 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 VII, 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 400,000 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 V 

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 be granted an Option to
purchase 10,000 shares of Common Stock, with such Option subject to the provisions of Article VI below. Options granted under this subsection (a) shall be evidenced by the Option Agreement shown in Appendix 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. 
  

 5 

 (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, if such individual is a Director as of such date and subject to subsection (d) below, such individual shall be granted an Option to purchase
5,000 shares of Common Stock, with such Option subject to the provisions of Article VI below. Options granted under this subsection (b) shall be evidenced by the Option Agreement shown in Appendix B. 
  
 (c) Transitional Rules. Notwithstanding anything in
subsections (a) and (b) to the contrary, no individual who is serving as a Director as of the Effective Date of this Plan shall be entitled to any Options until the December 31 next following the Effective Date. 
  
 (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 5,000 shares as of any December 31 under the provisions of subsection (b) above. 

 
 ARTICLE VI 
 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 100% of 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 or upon his death or upon a Change of Control. Other than as provided in the preceding sentences, if an Optionee ceases to be a
Director, his rights with regard to all non-vested Options shall cease immediately. 
  

 6 

 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. 
  
 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 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. 
  
 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 that 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 shares of the Common Stock that have been owned by the Optionee for at least six months, guaranteed or notarized, with such documentation as the Committee may require, or 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. 
  
 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 
  

 7 

 granted to him shall terminate on and shall not be exercisable after the earliest to occur of (i) the
expiration date of the Option, (ii) three months after the date the Optionee ceases to be a Director (except as provided in subsection (c)) or (iii) 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 (i) the expiration date of such Option, or (ii) one year after the date on which such Optionee ceases to be a
Director due to Disability (except as provided in subsection (c)). Prior to the earlier of such dates, 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 (i) while he is a Director, (ii) within three months after the date on which such Optionee’s service as a Director is terminated (for a reason other than Cause) as provided in
subsection (a) above, or (iii) 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. 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 VII, no adjustment will be made for dividends or other rights for which the record date is prior to the date of such issuance.

  

 8 

 6.12 No Obligation to Exercise Option. The granting of an Option shall impose no obligation upon
the Optionee to exercise such Option. 
  
 ARTICLE VII

 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 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. 
  

 9 

 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 VIII 
 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 represented 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 preceding restrictions will not be recognized by the Corporation, nor will any transferee be 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. 
  

 10 

 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 Nasdaq 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 Nasdaq of the shares of Common Stock to be issued. 
  
 ARTICLE IX 
 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 X 
 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; 
  

 11 

 (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 approval is necessary with respect to tax, securities or other applicable laws or the applicable rules or regulations of any stock exchange or
Nasdaq. 
  
 10.3 Expiration of Plan. 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. 
  

ARTICLE XI 
 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 X, 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. 
  
 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. 
  

 12 

 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. 
  
 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 ON JANUARY 24, 2005,

 EFFECTIVE AS OF MAY 18, 2005 
  
 APPROVED BY SHAREHOLDERS ON MAY 18, 2005 
  

 13 

 APPENDIX A 
  
 NONQUALIFIED STOCK OPTION NO.             

  
 ADTRAN, INC. 
 2005 DIRECTORS STOCK OPTION PLAN 
  
 NONQUALIFIED STOCK OPTION AGREEMENT 
  
 This Nonqualified Stock Option Agreement (the “Agreement”) is entered into as of the          day
of                     ,             , by and between ADTRAN, Inc. (the
“Company”) and
                                        
                 (“Optionee”). 
  
 W I T N E S S E T H: 
  
 WHEREAS, the Company has adopted the ADTRAN, Inc. 2005 Directors Stock Option Plan (the “Plan”) which is administered by a committee
appointed by the Company’s Board of Directors (the “Committee”); and 
  
 WHEREAS, effective as of                     ,
            , the Committee granted to Optionee a nonqualified stock option under, and in accordance with, the terms of the Plan to reward Optionee for his efforts on behalf of the
Company and to encourage his continued loyalty and diligence; and 
  
 WHEREAS, to comply with the terms of the Plan and to further the interests of the Company and Optionee, the parties hereto have set forth the terms of such option in writing in this Agreement; 
  
 NOW, THEREFORE, for and in consideration of the premises and mutual
promises herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties agree as follows: 
  

1. Grant of Option. Effective as of
                    ,             , the Optionee was granted a nonqualified
stock option under the Plan. Under that option and subject to the terms and conditions set forth herein, Optionee shall have the right to purchase 10,000 shares of the $0.01 par value common stock of the Company (the “Common Stock”); such
10,000 shares hereinafter are referred to as the “Optioned Shares”, and this option hereinafter is referred to as the “Option”. The Option is intended to be a nonqualified stock option. 
  
 2. Option Price. The price per share for each of the Optioned Shares
shall be $                     (the “Option Price”), which is equal to 100% of the per share Fair Market Value of the Optioned
Shares on the date of grant specified above. 
  
 3. Exercise of
Option. 
  
 (a) General. The Option may be exercised
by Optionee’s delivery to the Secretary of the Company of a written notice of exercise executed by Optionee (the “Notice of 
  

 14 

 Exercise”). The Notice of Exercise shall be substantially in the form set forth as Exhibit A, attached hereto and
made a part hereof, and shall identify the Option and the number of Optioned Shares that are being exercised. 
  
 (b) Beginning of Exercise Period. The Option first shall become exercisable (i.e., vested) as of the first anniversary of the date of grant
of the Option; provided, if Optionee ceases to be a Director, his rights with regard to all non-vested Options under this schedule shall cease immediately. Notwithstanding the foregoing, the Option shall become 100% vested immediately upon the death
or Disability of Optionee or upon a Change of Control of the Company. 
  
 (c) Partial Exercise. Optionee may exercise the Option for less than the full number of exercisable Optioned Shares, but such exercise may not be made for less than 100 shares or the total remaining shares subject to the Option, if
less than 100 shares. 
  
 4. Termination of Option.
Notwithstanding any provisions to the contrary herein, the Option shall not be exercisable either in whole or in part after the earliest of: 
  
 (a) Ten years from the date of grant; 
  
 (b) The date that is immediately prior to the first anniversary of the date on which Optionee dies (i) while a Director, (ii) within the three-month
period that begins on the date on which Optionee ceases to be a Director for any reason other than death or Disability or (iii) within the one-year period that begins on the date on which Optionee ceases to be a Director due to Disability;

  
 (c) The date of expiration of the one-year period that begins
on the date on which Optionee ceases to be a Director due to Disability; provided, if Optionee dies during such one-year period, the terms of subsection (b) shall control; 
  
 (d) The date of expiration of the three-month period that begins on the date on which Optionee ceases to be a Director for
any reason other than death or Disability; provided, if Optionee dies during such one-year period, the terms of subsection (b) shall control; 
  
 (e) The date on which the Company gives notice (or is deemed to have given notice) to Optionee of his termination of service as a director for Cause, as
described in Section 6.9(a) of the Plan; or 
  
 (f) Such other
earlier date as may be required under the terms of the Plan. 
  
 5. Option Non-Transferable. The Option shall not be transferable by Optionee other than by will or by the laws of descent and distribution, and any purported transfer shall be null and void. During the lifetime of Optionee, the
Option shall be exercisable only by Optionee (or, if he becomes disabled or otherwise incapacitated, by the guardian of his property or his duly appointed attorney-in-fact), and shall not be assignable or transferable by Optionee and, subject to
Section 6 hereof, no other person shall acquire any rights in the Option. 
  

 15 

 6. Death of Optionee and Transfer of Option. In the event of the death of Optionee while a
Director, within a period of one year after the termination of his service as a Director due to Disability, or within a three-month period after the director ceases to be a Director for any reason other than for Cause, all or any of the unexercised
portion of the Option owned by the deceased Optionee may be exercised by Optionee’s Beneficiary at any time prior to the first anniversary of the date of the death of Optionee, but in no event later than the date as of which such Option expires
pursuant to Section 4 hereof. Such exercise shall be effected in accordance with the terms hereof as if such Beneficiary was Optionee herein. The Optionee agrees that the following individual shall initially be his Beneficiary: 
  

			
	Name:	 	__________________________________________
		
	Address:	 	__________________________________________
	 	 	__________________________________________
	 	 	__________________________________________

  
 Any subsequent
modification of the Optionee’s Beneficiary shall be made pursuant to the terms and provisions of the Plan. 
  
 7. Medium and Time of Payment of Option Price. 
  
 (a) General. The Option Price shall be payable by Optionee (or his Beneficiary in accordance with Section 6 hereof) upon exercise of the Option and
shall be paid in cash, in shares of the Common Stock, or any combination thereof. 
  
 (b) Payment in Shares of the Common Stock. If Optionee pays all or part of the Option Price with shares of the Common Stock, the following conditions shall apply: 
  
 (i) Optionee shall deliver to the Secretary of the Company
shares of the Common Stock that have been owned by the Optionee for at least six months, guaranteed or notarized, with such documentation as the Committee may require, or in such other manner as the Committee may require; 
  
 (ii) Such shares shall be valued on the basis of the Fair
Market Value of the Common Stock on the date of exercise pursuant to the terms of the Plan; and 
  
 (iii) The value of such Common Stock shall be less than or equal to the Option Price. If Optionee delivers Common Stock with a value that
is less than the Option Price, then Optionee shall pay the balance of the Option Price in cash. 
  
 8. Agreement of Optionee. Optionee acknowledges that he has read Article VIII of the Plan and understands that certain restrictions may apply with
respect to shares of the Common Stock acquired by him pursuant to his exercise of the Option (including restrictions on resale applicable to “affiliates” under Rule 144 of the Securities Act of 1933, as amended, and restrictions on resale
applicable to shares of the Common Stock that have not been registered under the Securities Act of 1933, as amended, and applicable state securities laws). Optionee hereby agrees to execute such documents and take such actions as the Company may
require with respect to state and federal securities laws and any restrictions on the resale of such shares which may pertain. 
  

 16 

 9. Delivery of Stock Certificates. As promptly as practical after the date of exercise of the
Option and the receipt by the Company of full payment therefor, and satisfaction of any other conditions provided under the Plan, the Company shall deliver to Optionee a stock certificate representing the shares of the Common Stock acquired by
Optionee pursuant to his exercise of the Option. 
  
 10.
Notices. All notices or other communications hereunder shall be in writing and shall be effective (i) when personally delivered by courier (including overnight carriers) or otherwise to the party to be given such notice or other communication
or (ii) on the third business day following the date deposited in the United States mail if such notice or other communication is sent by certified or registered mail with return receipt requested and postage thereon fully prepaid. The addresses for
such notices shall be as follows: 
  
 If to the Company:

  
 ADTRAN, Inc. 
 Attention: Corporate Secretary 
 901 Explorer
Boulevard 
 Huntsville, AL 35814-4000 
  
 If to Optionee: 
  

	
	__________________________
	__________________________
	__________________________
	__________________________

  
 Any party hereto, by
notice to the other party hereunder, may change its address for receipt of notices hereunder. 
  
 11. Other Terms and Conditions. In addition to the terms and conditions set forth herein, the Option is subject to and governed by the other terms and conditions set forth in the Plan, each of which is hereby
incorporated by reference. In the event of any conflict between the provisions of this Agreement and the Plan, the Plan shall control. 
  
 12. Miscellaneous. 
  
 (a) The granting of the Option and the execution of this Agreement shall not give Optionee any rights to similar grants in future years or any right to be
retained in the service of the Company or to interfere in any way with the right of the Company to terminate Optionee’s services at any time. 
  
 (b) Unless and except as otherwise specifically provided in this Agreement, Optionee shall have no rights of a stockholder with respect to any shares
covered by the Option until the date of issuance of a stock certificate to him for such shares. 
  

 17 

 (c) If any term, provision, covenant or restriction contained in this Agreement is held by a court or a
federal regulatory agency of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions contained in this Agreement shall remain in full force and effect, and shall in no way be
affected, impaired or invalidated. If for any reason such court or regulatory agency determines that this Agreement will not permit Optionee to acquire the full number of Optioned Shares as provided in Section 1 hereof, it is the express intention
of the Company to allow Optionee to acquire such lesser number of shares as may be permissible without any amendment or modification hereof. 
  
 (d) This Agreement shall be construed and enforced in accordance with the laws of the State of Alabama. 
  
 (e) This Agreement, together with the Plan, contains the entire understanding
between the parties and supersedes any prior understanding and agreements between them representing the subject matter hereof. There are no representations, agreements, arrangements or understandings, oral or written, between and among the parties
hereto relating to the subject matter hereof which are not fully expressed herein, or in the Plan. 
  
 (f) Section and other headings contained in this Agreement are for reference purposes only and are in no way intended to describe, interpret, define or
limit the scope, extent or intent of this Agreement or any provision hereof. 
  
 (g) This Agreement may be executed in multiple counterparts, each of which shall be deemed an original and all of which shall constitute one agreement, and the signatures of any party or any counterpart shall be
deemed to be a signature to, and may be appended to, any other counterpart. 
  
 (h) All capitalized terms in this Agreement shall be construed in accordance with their defined terms under the Plan. 
  

 18 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the first date written
above. 
  

			
	ADTRAN, INC.
		
	By:	 	  

	Title:	 	  

	
	OPTIONEE:
	
	

	Signature
	
	

	Print or type name

  
  

 19 

 EXHIBIT A 
  

ADTRAN, INC. 
 2005 DIRECTORS STOCK OPTION
PLAN 
  
 NOTICE OF EXERCISE FOR NONQUALIFIED STOCK OPTION
AGREEMENT 
  
 This Notice of Exercise is given pursuant to the
terms of the Nonqualified Stock Option Agreement, dated                     ,
            , between ADTRAN, Inc. (the “Company”) and the undersigned Optionee (the “Agreement”), which Agreement represents Nonqualified Stock Option No.
                     and which is made a part hereof and incorporated herein by reference. 
  
 EXERCISE OF OPTION. Optionee hereby exercises his option to purchase
                     of his Optioned Shares. Optionee hereby delivers, together with this written statement of exercise, the full Option Price
with respect to the exercised Optioned Shares, which consists of: [COMPLETE ONLY ONE] 
  

	 	 ̈	cash in the total amount of $                    .

  

	 	 ̈	             shares of the Company’s Common Stock. 

  

	 	 ̈	cash in the total amount of $                     and
             shares of the Company’s Common Stock. 

  
 ACKNOWLEDGMENT. Optionee hereby acknowledges that, to the extent he is an “affiliate” of the Company (as that term is defined in Rule 144
promulgated under the Securities Act of 1933, as amended) or to the extent that the Optioned Shares have not been registered under the Securities Act of 1933, as amended, or applicable state securities laws, any shares of the Company’s Common
Stock acquired by him as a result of his exercise of the Option pursuant to this Notice are subject to, and the certificates representing such shares shall be legended to reflect, certain trading restrictions under applicable securities laws
(including particularly the Securities and Exchange Commission’s Rule 144), all as described in Article VIII of the Plan, and Optionee hereby agrees to comply with all such restrictions and to execute such documents or take such other actions
as the Company may require in connection with such restrictions. 
  
 Executed this          day of                     ,
            . 
  

	
	OPTIONEE:
	
	

	Signature
	
	

	Print or Type Name

  
 ADTRAN, Inc.
hereby acknowledges receipt of this Notice of Exercise and receipt of payment in the form and amount indicated above, all on this          day of
                    ,             . 
  

			
	ADTRAN, INC.
		
	By:	 	  

	Title:	 	  

  

 20 

 APPENDIX B 
  
 NONQUALIFIED STOCK OPTION NO.             

  
 ADTRAN, INC. 
 2005 DIRECTORS STOCK OPTION PLAN 
  
 NONQUALIFIED STOCK OPTION AGREEMENT 
  
 This Nonqualified Stock Option Agreement (the “Agreement”) is entered into as of the          day
of                     ,             , by and between ADTRAN, Inc. (the
“Company”) and
                                        
                 (“Optionee”). 
  
 W I T N E S S E T H: 
  
 WHEREAS, the Company has adopted the ADTRAN, Inc. 2005 Directors Stock Option Plan (the “Plan”) which is administered by a committee
appointed by the Company’s Board of Directors (the “Committee”); and 
  
 WHEREAS, effective as of December 31,             , the Committee granted to Optionee a nonqualified stock option under, and in accordance
with, the terms of the Plan to reward Optionee for his efforts on behalf of the Company and to encourage his continued loyalty and diligence; and 
  
 WHEREAS, to comply with the terms of the Plan and to further the interests of the Company and Optionee, the parties hereto have set forth the terms
of such option in writing in this Agreement; 
  
 NOW,
THEREFORE, for and in consideration of the premises and mutual promises herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties agree as follows: 
  
 1. Grant of Option. Effective as of December 31,
            , the Optionee was granted a nonqualified stock option under the Plan. Under that option and subject to the terms and conditions set forth herein, Optionee shall have the
right to purchase 5,000 shares of the $0.01 par value common stock of the Company (the “Common Stock”); such 5,000 shares hereinafter are referred to as the “Optioned Shares”, and this option hereinafter is referred to as the
“Option”. The Option is intended to be a nonqualified stock option. 
  
 2. Option Price. The price per share for each of the Optioned Shares shall be $                    
(the “Option Price”), which is equal to 100% of the per share Fair Market Value of the Optioned Shares on the date of grant specified above. 
  
 3. Exercise of Option. 
  
 (a) General. The Option may be exercised by Optionee’s delivery to the Secretary of the Company of a written notice of exercise executed by
Optionee (the “Notice of 
  

 21 

 Exercise”). The Notice of Exercise shall be substantially in the form set forth as Exhibit A, attached hereto and
made a part hereof, and shall identify the Option and the number of Optioned Shares that are being exercised. 
  
 (b) Beginning of Exercise Period. The Option first shall become exercisable (i.e., vested) as of the first anniversary of the date of grant
of the Option; provided, if Optionee ceases to be a Director, his rights with regard to all non-vested Options under this schedule shall cease immediately. Notwithstanding the foregoing, the Option shall become 100% vested immediately upon the death
or Disability of Optionee or upon a Change of Control of the Company. 
  
 (c) Partial Exercise. Optionee may exercise the Option for less than the full number of exercisable Optioned Shares, but such exercise may not be made for less than 100 shares or the total remaining shares subject to the Option, if
less than 100 shares. 
  
 4. Termination of Option.
Notwithstanding any provisions to the contrary herein, the Option shall not be exercisable either in whole or in part after the earliest of: 
  
 (a) Ten years from the date of grant; 
  
 (b) The date that is immediately prior to the first anniversary of the date on which Optionee dies (i) while a Director, (ii) within the three-month
period that begins on the date on which Optionee ceases to be a Director for any reason other than death or Disability or (iii) within the one-year period that begins on the date on which Optionee ceases to be a Director due to Disability;

  
 (c) The date of expiration of the one-year period that begins
on the date on which Optionee ceases to be a Director due to Disability; provided, if Optionee dies during such one-year period, the terms of subsection (b) shall control; 
  
 (d) The date of expiration of the three-month period that begins on the date on which Optionee ceases to be a Director for
any reason other than death or Disability; provided, if Optionee dies during such one-year period, the terms of subsection (b) shall control; 
  
 (e) The date on which the Company gives notice (or is deemed to have given notice) to Optionee of his termination of service as a Director for Cause, as
described in Section 6.9(a) of the Plan; or 
  
 (f) Such other
earlier date as may be required under the terms of the Plan. 
  
 5. Option Non-Transferable. The Option shall not be transferable by Optionee other than by will or by the laws of descent and distribution, and any purported transfer shall be null and void. During the lifetime of Optionee, the
Option shall be exercisable only by Optionee (or, if he becomes disabled or otherwise incapacitated, by the guardian of his property or his duly appointed attorney-in-fact), and shall not be assignable or transferable by Optionee and, subject to
Section 6 hereof, no other person shall acquire any rights in the Option. 
  

 22 

 6. Death of Optionee and Transfer of Option. In the event of the death of Optionee while a
Director, within a period of one year after the termination of his service as a Director due to Disability, or within a three-month period after the director ceases to be a Director for any reason other than for Cause, all or any of the unexercised
portion of the Option owned by the deceased Optionee may be exercised by Optionee’s Beneficiary at any time prior to the first anniversary of the date of the death of Optionee, but in no event later than the date as of which such Option expires
pursuant to Section 4 hereof. Such exercise shall be effected in accordance with the terms hereof as if such Beneficiary was Optionee herein. The Optionee agrees that the following individual shall initially be his Beneficiary: 
  

			
	Name:	 	__________________________________________
		
	Address:	 	__________________________________________
	 	 	__________________________________________
	 	 	__________________________________________

  
 Any subsequent
modification of the Optionee’s Beneficiary shall be made pursuant to the terms and provisions of the Plan. 
  
 7. Medium and Time of Payment of Option Price. 
  
 (a) General. The Option Price shall be payable by Optionee (or his Beneficiary in accordance with Section 6 hereof) upon exercise of the Option and
shall be paid in cash, in shares of the Common Stock, or any combination thereof. 
  
 (b) Payment in Shares of the Common Stock. If Optionee pays all or part of the Option Price with shares of the Common Stock, the following conditions shall apply: 
  
 (i) Optionee shall deliver to the Secretary of the Company
shares of the Common Stock that have been owned by the Optionee for at least six months, guaranteed or notarized, with such documentation as the Committee may require, or in such other manner as the Committee may require; 
  
 (ii) Such shares shall be valued on the basis of the fair
market value of the Common Stock on the date of exercise pursuant to the terms of the Plan; and 
  
 (iii) The value of such Common Stock shall be less than or equal to the Option Price. If Optionee delivers Common Stock with a value that
is less than the Option Price, then Optionee shall pay the balance of the Option Price in cash. 
  
 8. Agreement of Optionee. Optionee acknowledges that he has read Article VIII of the Plan and understands that certain restrictions may apply with
respect to shares of the Common Stock acquired by him pursuant to his exercise of the Option (including restrictions on resale applicable to “affiliates” under Rule 144 of the Securities Act of 1933, as amended, and restrictions on resale
applicable to shares of the Common Stock that have not been registered under the Securities Act of 1933, as amended, and applicable state securities laws). Optionee hereby agrees to execute such documents and take such actions as the Company may
require with respect to state and federal securities laws and any restrictions on the resale of such shares which may pertain. 
  

 23 

 9. Delivery of Stock Certificates. As promptly as practical after the date of exercise of the
Option and the receipt by the Company of full payment therefor, and satisfaction of any other conditions provided under the Plan, the Company shall deliver to Optionee a stock certificate representing the shares of the Common Stock acquired by
Optionee pursuant to his exercise of the Option. 
  
 10.
Notices. All notices or other communications hereunder shall be in writing and shall be effective (i) when personally delivered by courier (including overnight carriers) or otherwise to the party to be given such notice or other communication
or (ii) on the third business day following the date deposited in the United States mail if such notice or other communication is sent by certified or registered mail with return receipt requested and postage thereon fully prepaid. The addresses for
such notices shall be as follows: 
  
 If to the Company:

  
 ADTRAN, Inc. 
 Attention: Corporate Secretary 
 901 Explorer
Boulevard 
 Huntsville, AL 35814-4000 
  
 If to Optionee: 
  

	
	
	_________________________________
	
	_________________________________
	
	_________________________________
	
	_________________________________

  
 Any party hereto, by
notice to the other party hereunder, may change its address for receipt of notices hereunder. 
  
 11. Other Terms and Conditions. In addition to the terms and conditions set forth herein, the Option is subject to and governed by the other terms and conditions set forth in the Plan, which is hereby
incorporated by reference. In the event of any conflict between the provisions of this Agreement and the Plan, the Plan shall control. 
  
 12. Miscellaneous. 
  
 (a) The granting of the Option and the execution of this Agreement shall not give Optionee any rights to similar grants in future years or any right to be
retained in the service of the Company or to interfere in any way with the right of the Company to terminate Optionee’s services at any time. 
  
 (b) Unless and except as otherwise specifically provided in this Agreement, Optionee shall have no rights of a stockholder with respect to any shares
covered by the Option until the date of issuance of a stock certificate to him for such shares. 
  

 24 

 (c) If any term, provision, covenant or restriction contained in this Agreement is held by a court or a
federal regulatory agency of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions contained in this Agreement shall remain in full force and effect, and shall in no way be
affected, impaired or invalidated. If for any reason such court or regulatory agency determines that this Agreement will not permit Optionee to acquire the full number of Optioned Shares as provided in Section 1 hereof, it is the express intention
of the Company to allow Optionee to acquire such lesser number of shares as may be permissible without any amendment or modification hereof. 
  
 (d) This Agreement shall be construed and enforced in accordance with the laws of the State of Alabama. 
  
 (e) This Agreement, together with the Plan, contains the entire understanding
between the parties and supersedes any prior understanding and agreements between them representing the subject matter hereof. There are no representations, agreements, arrangements or understandings, oral or written, between and among the parties
hereto relating to the subject matter hereof which are not fully expressed herein, or in the Plan. 
  
 (f) Section and other headings contained in this Agreement are for reference purposes only and are in no way intended to describe, interpret, define or
limit the scope, extent or intent of this Agreement or any provision hereof. 
  
 (g) This Agreement may be executed in multiple counterparts, each of which shall be deemed an original and all of which shall constitute one agreement, and the signatures of any party or any counterpart shall be
deemed to be a signature to, and may be appended to, any other counterpart. 
  
 (h) All capitalized terms in this Agreement shall be construed in accordance with their defined terms under the Plan. 
  
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the first date written above. 
  

			
	ADTRAN, INC.
		
	By:	 	  

	Title:	 	  

	
	OPTIONEE:
	
	

	Signature
	  

	Print or type name

  

 25 

 EXHIBIT A 
  
 ADTRAN, INC. 
 2005 DIRECTORS STOCK OPTION PLAN

  
 NOTICE OF EXERCISE FOR NONQUALIFIED STOCK OPTION AGREEMENT

  
 This Notice of Exercise is given pursuant to the terms of
the Nonqualified Stock Option Agreement, dated                     ,
            , between ADTRAN, Inc. (the “Company”) and the undersigned Optionee (the “Agreement”), which Agreement represents Nonqualified Stock Option No.
             and which is made a part hereof and incorporated herein by reference. 
  
 EXERCISE OF OPTION. Optionee hereby exercises his option to purchase
             of his Optioned Shares. Optionee hereby delivers, together with this written statement of exercise, the full Option Price with respect to the exercised Optioned Shares,
which consists of: [COMPLETE ONLY ONE] 
  

	 	 ̈	cash in the total amount of $                    .

  

	 	 ̈	             shares of the Company’s Common Stock. 

  

	 	 ̈	cash in the total amount of $                     and
             shares of the Company’s Common Stock. 

  
 ACKNOWLEDGMENT. Optionee hereby acknowledges that, to the extent he is an “affiliate” of the Company (as that term is defined in Rule 144
promulgated under the Securities Act of 1933, as amended) or to the extent that the Optioned Shares have not been registered under the Securities Act of 1933, as amended, or applicable state securities laws, any shares of the Company’s Common
Stock acquired by him as a result of his exercise of the Option pursuant to this Notice are subject to, and the certificates representing such shares shall be legended to reflect, certain trading restrictions under applicable securities laws
(including particularly the Securities and Exchange Commission’s Rule 144), all as described in Article VIII of the Plan, and Optionee hereby agrees to comply with all such restrictions and to execute such documents or take such other actions
as the Company may require in connection with such restrictions. 
  
 Executed this          day of                     ,
            . 
  

	
	OPTIONEE:
	  

	Signature
	  

	Print or Type Name

  
 ADTRAN, Inc.
hereby acknowledges receipt of this Notice of Exercise and receipt of payment in the form and amount indicated above, all on this          day of
                    ,             . 
  

			
	ADTRAN, INC.
		
	By:	 	  

	Title:	 	  

  

 26

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