Document:

Prepared by MerrillDirect

 

ADC
TELECOMMUNICATIONS, INC. 401(k) EXCESS PLAN

(2001 Restatement)

 

First Effective September 1, 1990

As Restated Effective January 1, 2001

 

 

ADC
TELECOMMUNICATIONS, INC. 401(k) EXCESS PLAN

(2001
Restatement)

TABLE
OF CONTENTS

	
   
  
	
  PREAMBLES
  
	
   
  
	
  SECTION
  1
  	
  INTRODUCTION
  
	
   
  
	
   
  	
  1.1

  	
  Definitions
  
	
   
  	
  1.1.1
  	
  Accounts
  
	
   
  	
  1.1.2
  	
  Affiliate
  
	
   
  	
  1.1.3
  	
  Annual Enrollment Period
  
	
   
  	
  1.1.4
  	
  Annual Valuation Date
  
	
   
  	
  1.1.5
  	
  Beneficiary
  
	
   
  	
  1.1.6
  	
  Code
  
	
   
  	
  1.1.7
  	
  Committee
  
	
   
  	
  1.1.8
  	
  Compensation
  
	
   
  	
  1.1.9
  	
  Disability
  
	
   
  	
  1.1.10
  	
  Effective Date
  
	
   
  	
  1.1.11
  	
  Employer
  
	
   
  	
  1.1.12
  	
  ERISA
  
	
   
  	
  1.1.13
  	
  Excess Compensation
  
	
   
  	
  1.1.14
  	
  Excess Savings Agreement
  
	
   
  	
  1.1.15
  	
  Event of Maturity
  
	
   
  	
  1.1.16
  	
  Participant
  
	
   
  	
  1.1.17
  	
  Plan
  
	
   
  	
  1.1.18
  	
  Plan Statement
  
	
   
  	
  1.1.19
  	
  Plan Year
  
	
   
  	
  1.1.20
  	
  Principal Sponsor
  
	
   
  	
  1.1.21
  	
  Recognized Employment
  
	
   
  	
  1.1.22
  	
  Retirement Savings Plan
  
	
   
  	
  1.1.23
  	
  Unit Share
  
	
   
  	
  1.1.24
  	
  Valuation Date
  
	
   
  	
  1.1.25
  	
  Vested
  
	
   
  	
  1.2
  	
  Rules of Interpretation
  
	
   
  	
  1.3
  	
  Transitional Rules
  
	
   
  
	
  SECTION
  2
  	
  ELIGIBILITY AND ENROLLMENT

  
	
   
  
	
   
  	
  2.1
  	
  Eligibility
  
	
   
  	
  2.2
  	
  Special Eligibility Rule for
  Employees Eligible as of November 1, 2000
  

 

 

	
   
  	
  2.3
  	
  Special Eligibility Rule for
  Transition Benefit
  
	
   
  	
  2.4
  	
  Excess Savings Agreement
  
	
   
  	
  2.4.1
  	
  Deferral Percentages
  
	
   
  	
  2.4.2
  	
  Automatic Cancellation
  
	
   
  	
  2.4.3
  	
  Voluntary Cancellation
  
	
   
  	
  2.4.4
  	
  Form of Agreement
  
	
   
  	
  2.4.5
  	
  Employer Administrative Error

  
	
   
  	
  2.5
  	
  Specific Exclusion
  
	
   
  
	
  SECTION
  3
  	
  ADDITIONS TO ACCOUNTS
  
	
   
  
	
   
  	
  3.1
  	
  Excess Savings Additions
  
	
   
  	
  3.1.1
  	
  Amount
  
	
   
  	
  3.1.2
  	
  Crediting the Account
  
	
   
  	
  3.2
  	
  Fixed Match Additions
  
	
   
  	
  3.2.1
  	
  Amount
  
	
   
  	
  3.2.2
  	
  Crediting the Account
  
	
   
  	
  3.2.3
  	
  Eligible Participant
  
	
   
  	
  3.3
  	
  Performance Match Additions

  
	
   
  	
  3.3.1
  	
  Amount
  
	
   
  	
  3.3.2
  	
  Crediting the Account
  
	
   
  	
  3.3.3
  	
  Eligible Participant
  
	
   
  	
  3.4
  	
  Transition Benefit
  
	
   
  	
  3.4.1
  	
  Amount
  
	
   
  	
  3.4.2
  	
  Crediting the Account
  
	
   
  	
  3.5
  	
  Nonduplication of Benefits

  
	
   
  
	
  SECTION
  4
  	
  ESTABLISHMENT AND ADJUSTMENT OF
  ACCOUNTS
  
	
   
  
	
   
  	
  4.1
  	
  Participant Accounts
  
	
   
  	
  4.1.1.
  	
  Establishment of Accounts

  
	
   
  	
  4.1.2.
  	
  Adjustment of Accounts
  
	
   
  	
  4.1.3.
  	
  Investment of Accounts
  
	
   
  	
  4.1.4.
  	
  Rules
  
	
   
  	
  4.2
  	
  Dividend Adjustment for Phantom
  Stock
  
	
   
  	
  4.3
  	
  Antidilution Adjustment for Phantom
  Stock
  
	
   
  	
  4.4

  	
  Not Funded
  
	
   
  
	
  SECTION
  5
  	
  VESTING ACCOUNTS
  
	
   
  
	
   
  	
  5.1
  	
  Full Vesting
  
	
   
  	
   
  	
   
  
	
  SECTION
  6
  	
  MATURITY
  	
   
  
	
   
  
	
   
  	
  6.1
  	
  Events of Maturity
  
	
   
  	
  6.2
  	
  Effect of Maturity upon Further
  Participation in Plan
  
	 
  	 
  	 
  	 
  	 
  	 
  

 

 

	
  SECTION
  7
  	
  DISTRIBUTION
  
	
   
  
	
   
  	
  7.1
  	
  Time of Distribution
  
	
   
  	
  7.2
  	
  Modification of Initial
  Designation and Failure to Designate
  
	
   
  	
  7.3
  	
  Forms of Distribution
  
	
   
  	
  7.4
  	
  Distribution in Cash
  
	
   
  	
  7.5

  	
  280G Limitation
  
	
   
  	
  7.6
  	
  Designation of Beneficiaries

  
	
   
  	
  7.6.1
  	
  Right To Designate
  
	
   
  	
  7.6.2
  	
  Failure of Designation
  
	
   
  	
  7.6.3
  	
  Disclaimers of Beneficiaries

  
	
   
  	
  7.6.4
  	
  Definitions
  
	
   
  	
  7.6.5
  	
  Special Rules
  
	
   
  	
  7.6.6
  	
  Spousal Rights
  
	
   
  	
  7.7
  	
  Death Prior to Full Distribution

  
	
   
  	
  7.8
  	
  Facility of Payment
  
	
   
  
	
  SECTION
  8
  	
  SPENDTHRIFT PROVISIONS
  
	
   
  
	
  SECTION
  9
  	
  AMENDMENT AND TERMINATION

  
	
   
  
	
   
  	
  9.1
  	
  Amendment and Termination

  
	
   
  	
  9.2
  	
  Change in Control
  
	
   
  	
  9.2.1
  	
  In General
  
	
   
  	
  9.2.2
  	
  Special Definitions
  
	
   
  	
  9.2.3
  	
  Amendment
  
	
   
  	
  9.2.4
  	
  Termination of Employment

  
	
   
  	
  9.2.5
  	
  Pending Distributions
  
	
   
  	
  9.2.6
  	
  Commutation of Installments

  
	
   
  	
  9.2.7
  	
  Not Amendable
  
	
   
  
	
  SECTION
  10
  	
  ADMINISTRATION
  
	
   
  
	
   
  	
  10.1
  	
  Authority
  
	
   
  	
  10.2
  	
  Liability
  
	
   
  	
  10.3
  	
  Procedures
  
	
   
  	
  10.4
  	
  Claim for Benefits
  
	
   
  	
  10.5
  	
  Claims Procedure
  
	
   
  	
  10.5.1
  	
  Original Claim
  
	
   
  	
  10.5.2
  	
  Claims Review Procedure
  
	
   
  	
  10.5.3
  	
  General Rules
  
	
   
  	
  10.6
  	
  Errors in Computations
  

 

 

	
  SECTION
  11
  	
  PLAN ADMINISTRATION
  
	
   
  
	
   
  	
  11.1
  	
  Principal Sponsor
  
	
   
  	
  11.1.1
  	
  Officers
  
	
   
  	
  11.1.2
  	
  Compensation and Organization
  Committee
  
	
   
  	
  11.1.3
  	
  Board of Directors
  
	
   
  	
  11.1.4
  	
  Amendment
  
	
   
  	
  11.2
  	
  Conflict of Interest
  
	
   
  	
  11.3
  	
  Administrator
  
	
   
  	
  11.4
  	
  Service of Process
  
	
   
  
	
  SECTION
  12
  	
  DISCLAIMERS
  
	
   
  
	
   
  	
  12.1
  	
  Term of Employment
  
	
   
  	
  12.2
  	
  Employment
  
	
   
  	
  12.3
  	
  Source of Payment
  
	
   
  	
  12.4
  	
  Guaranty
  
	
   
  	
  12.5
  	
  Delegation
  
	 
  	 
  	 
  	 
  	 
  

 

 

ADC TELECOMMUNICATIONS, INC. 401(k) EXCESS PLAN

(2001 Restatement)

 

                   
WITNESSETH:  That

                   
WHEREAS, ADC TELECOMMUNICATIONS, INC., a Minnesota corporation (the “Principal
Sponsor”), by resolution of its Board of Directors, has heretofore established
and maintained a nonqualified, unfunded, deferred compensation and supplemental
retirement plan for the benefit of a select group of management or highly
compensated eligible employees, which in its most restated form, is embodied in
a document effective September 1, 1990 and entitled “ADC Telecommunications,
Inc. 401(k) Excess Plan (1990 Restatement),” as amended by five amendments; and

                   
WHEREAS, The Principal Sponsor has reserved to itself the power to make
further amendments of the Plan documents; and

                   
WHEREAS, It is desired to amend and restate the Plan documents to be a
single document in the manner hereinafter set forth;

                   
NOW, THEREFORE, The Plan documents are hereby amended and restated,
effective as of January 1, 2001, to read in full as follows:

 

SECTION 1

INTRODUCTION

1.1     Definitions. 
When the following terms are used herein with initial capital letters, they
shall have the following meanings:

         
1.1.1            Accounts
- the following Accounts will be maintained under the Plan for Participants:

(a)               
Total Account - for convenience of reference, the separate unfunded and
unsecured general obligation of the Employer established with respect to each
person who is a Participant in the Plan in accordance with Section 2, including
the Participant’s Excess Savings Account, Fixed Match Account, Performance
Match Account and Transition Benefit Account.

(b)               
Excess Savings Account - the bookkeeping account maintained for each
Participant to which is credited the voluntary deferral amounts specified in
Section 3.1.

(c)               
Fixed Match Account - the bookkeeping account maintained for each
Participant to which is credited the fixed matching contribution amounts
specified in Section 3.2.

(d)               
Performance Match Account - the bookkeeping account maintained for each
Participant to which is credited the performance matching contribution amounts
specified in Section 3.3.

(e)               
Transition Benefit Account - the bookkeeping account maintained for each
Participant to which is credited the amount specified in Section 3.4.

         
1.1.2           
Affiliate - a business entity which is under “common control”
with the Employer or which is a member of an “affiliated service group” that
includes the Employer, as those terms are defined in section 414(b), (c) and
(m) of the Code.  A business entity, which is a predecessor to the
Employer, shall be treated as an Affiliate if the Employer maintains a plan of
such predecessor business entity or if, and to the extent that, such treatment
is otherwise required by regulations under section 414(a) of the Code.  A
business entity shall also be treated as an Affiliate if, and to the extent
that, such treatment is required by regulations under section 414(o) of the
Code.  In addition to said required treatment, the Principal Sponsor may,
in its discretion, designate as an Affiliate any business entity which is not
such a “common control,” “affiliated service group” or “predecessor” business
entity but which is otherwise affiliated with the Employer, subject to such
limitations as the Principal Sponsor may impose.

         
1.1.3           
Annual Enrollment Period - the time period
designated by the ADC Telecommunications, Inc. Corporate Benefits Department
during which eligible employees may, pursuant to rules established by the ADC
Telecommunications, Inc. Corporate Benefits Department, enroll in the Plan as
Participants or change their deferral percentages under the Plan.  An
Annual Enrollment Period for a Plan Year will end no later than December 31 of
the preceding Plan Year.

 

         
1.1.4           
Annual Valuation Date - each December 31.

         
1.1.5           
Beneficiary - a person designated by a Participant (or
automatically by operation of this Plan Statement) to receive all or a part of
the Participant’s Total Account in the event of the Participant’s death prior
to full distribution thereof.  A person so designated becomes a
Beneficiary after the death of the Participant with respect to whom the person
is a Beneficiary.

         
1.1.6           
Code - the Internal Revenue Code of 1986, including
applicable regulations for the specified section of the Code.  Any
reference in this Plan Statement to a section of the Code, including the
applicable regulation, shall be considered also to mean and refer to any later
amendment or replacement of that section or regulation.

         
1.1.7           
Committee - the Committee known as the ADC Retirement
Committee, referred to in this Plan Statement as Committee or Retirement
Committee.

         
1.1.8           
Compensation - Recognized Compensation as
defined in the ADC Retirement Savings Plan, but for purposes of this Plan,
determined without regard to the limitation in section 401(a)(17) of the Code
($170,000 in 2001, and as subsequently adjusted for inflation).

         
1.1.9           
Disability - a physical or mental condition resulting from
injury or illness which is of such a nature that it constitutes total
disability as defined for purposes of the group long-term disability insurance
program maintained by the Employer, whether or not the individual is actually
covered by such group long-term disability insurance program.

         
1.1.10          Effective
Date - September 1, 1990.

         
1.1.11          Employer
- the Principal Sponsor, any business entity affiliated with the Principal
Sponsor that adopts the Plan, and any successor thereof that adopts the Plan.

         
1.1.12          ERISA
- the Employee Retirement Income Security Act of 1974, including applicable
regulations for the specified section of ERISA.  Any reference in this
Plan Statement to a section of ERISA, including the applicable regulation,
shall be considered also to mean and refer to any subsequent amendment or
replacement of that section or regulation.

         
1.1.13          Excess
Compensation - Compensation for a Plan Year that
exceeds the limitations in section 401(a)(17) of the Code for such Plan Year
($170,000 in 2001, and as subsequently adjusted for inflation).

         
1.1.14          Excess
Savings Agreement - the agreement which may be entered into by a
Participant as provided in Section 2.2.

 

         
1.1.15          Event
of Maturity - any of the occurrences described in Section 6 by
reason of which a Participant or Beneficiary may become entitled to a
distribution from the Plan.

         
1.1.16          Participant
- an employee of the Employer who has satisfied the eligibility rules in
Section 2 and receives a credit under an Account pursuant to the rules of
Section 3.  An employee who has become a Participant shall be considered
to continue as a Participant in the Plan until the Participant’s date of death
or if earlier, the date upon which the Participant is no longer employed in
Recognized Employment and upon which the Participant no longer has any Account
under the Plan (that is, the Participant has both received a distribution of
all of the Participant’s Total Account, if any).

         
1.1.17          Plan
- the program of deferred compensation and supplemental retirement income
benefit of the Employer established for the benefit of employees eligible to
participate therein, as first set forth in this Plan Statement.  (As used
herein, “Plan” refers to the legal entity established by the Employer and not
to the document pursuant to which the Plan is maintained.  That document
is referred to herein as the “Plan Statement.”) The Plan shall be referred to
as the ADC TELECOMMUNICATIONS, INC. 401(k) EXCESS PLAN.”

         
1.1.18          Plan
Statement - this document entitled ADC TELECOMMUNICATIONS, INC.
401(k) EXCESS PLAN (2001 Restatement)” as adopted by the Principal Sponsor
effective as of January 1, 2001, as the same may be amended from time to time
thereafter.

         
1.1.19          Plan
Year - the twelve (12) consecutive month period ending on
any Annual Valuation Date.

         
1.1.20          Principal
Sponsor - ADC TELECOMMUNICATIONS, INC., a Minnesota
corporation.

         
1.1.21          Recognized
Employment - employment as a common law employee of the Employer
in a position which is:

(a)               
classified as Recognized Employment under the Retirement Savings Plan; and

(b)               
is at a salary grade for which the midpoint plus annual target cash incentive
normally results in total target cash compensation equal to or greater than the
Code section 401(a)(17) compensation limit which is $170,000 in 2000 (and is
periodically adjusted under the Code for cost of living increases.)

The Employer’s classification of a person at the time of inclusion or
exclusion in Recognized Employment shall be conclusive for the purpose of the
foregoing rules.  No reclassification of a person’s status with the
Employer, for any reason, without regard to whether it is initiated by a court,
governmental agency or otherwise and without regard to whether or not the
Employer agrees to such reclassification, shall result in the person being
included in Recognized Employment, either retroactively or prospectively. 
Any uncertainty concerning a person’s classification shall be resolved by
excluding the person from Recognized Employment.

 

         
1.1.22          Retirement
Savings Plan - the tax qualified defined contribution plan of the
Principal Sponsor established for the benefit of employees eligible to
participate therein, as set forth in the document entitled “ADC RETIREMENT
SAVINGS PLAN TRUST AGREEMENT (1999 Restatement)” as adopted by the Principal
Sponsor effective as of April 1, 1999, as the same may be amended from time to
time thereafter.

         
1.1.23          Unit
Share - a bookkeeping unit which is the equivalent of one
(1) share of common stock of the Principal Sponsor.

         
1.1.24          Valuation
Date - the Annual Valuation Date and any day during which
the New York Stock Exchange is open for business or any other date chosen by
the Committee.

         
1.1.25          Vested
- nonforfeitable, i.e., a claim obtained by a Participant or the
Participant’s Beneficiary to that part of an immediate or deferred benefit
hereunder which arises from the Participant’s service, which is unconditional
and which is legally enforceable against the Plan.

1.2    
Rules of Interpretation.  An individual
shall be considered to have attained a given age on the individual’s birthday
for that age (and not on the day before).  The birthday of any individual
born on a February 29 shall be deemed to be February 28 in any year that is not
a leap year.  Notwithstanding any other provision of this Plan Statement
or any election or designation made under the Plan, any individual who
feloniously and intentionally kills a Participant or Beneficiary shall be
deemed for all purposes of this Plan and all elections and designations made
under this Plan to have died before such Participant or Beneficiary.  A
final judgment of conviction of felonious and intentional killing is conclusive
for the purposes of this Section.  In the absence of a conviction of
felonious and intentional killing, the Employer shall determine whether the
killing was felonious and intentional for the purposes of this Section. 
Whenever appropriate, words used herein in the singular may be read in the
plural, or words used herein in the plural may be read in the singular; and the
words “hereof”, “herein” or “hereunder” or other similar compounds of the word
“here” shall mean and refer to this entire Plan Statement and not to any
particular paragraph or Section of this Plan Statement unless the context
clearly indicates to the contrary.  The titles given to the various
Sections of this Plan Statement are inserted for convenience of reference only
and are not part of this Plan Statement, and they shall not be considered in
determining the purpose, meaning or intent of any provision hereof.  Any
reference in this Plan Statement to a statute or regulation shall be considered
also to mean and refer to any subsequent amendment or replacement of that
statute or regulation.  This document has been adopted in the State of
Minnesota and has been drawn in conformity to the laws of that State and shall,
except to the extent that federal law is controlling, be construed and enforced
in accordance with the laws of the State of Minnesota.

1.3     Transitional
Rules.  The Employer may adopt such transition rules
as necessary to implement the Plan Statement effective January 1, 2001,
including, but not limited to, permitting the execution of Excess Savings
Agreements prior to that date.

 

SECTION
2

ELIGIBILITY AND ENROLLMENT

2.1    
Eligibility.  An employee is eligible to enroll in this Plan
for a Plan Year if such employee:  (i) is in Recognized Employment on the
November 1 immediately proceeding such Plan Year; and (ii) is selected by the
Committee to participate in the Plan for such Plan Year.

2.2    
Special Eligibility Rule for Employees Eligible as of November 1, 2000. 
Notwithstanding anything to the contrary, any employee who was eligible to
participate in this Plan on or before November 1, 2000 shall remain eligible to
participate in this Plan for each Plan Year following December 31, 2000 until
such Participant’s Event of Maturity pursuant to Section 6 of this Plan. 
Employees who are eligible to participate in this Plan pursuant to this rule
shall not be subject to the automatic cancellation rules in Section 2.4.

2.3    
Special Eligibility Rule for Transition Benefit.  Any employee of the Employer or an Affiliate
who, in a Plan Year, receives: (i) Excess Compensation and (ii) a Transition
Benefit under the ADC Retirement Savings Plan shall be eligible for a a
contribution under this Plan.

2.4     Excess
Savings Agreement.  To enroll for participation in this Plan, an
eligible employee must complete an Excess Savings Agreement and deliver it to
the Employer during the Annual Enrollment Period for the Plan Year in which the
employee desires to participate in the Plan.  Subject to the provisions of
Section 2.4.2 and Section 2.4.3, an employee’s Excess Savings Agreement
shall remain in effect for each subsequent Plan Year.

         
2.4.1            Deferral
Percentages.  Elections for Excess Savings Additions may be
made in increments of one percent (1%) and shall be equal to not less than one
percent (1%) nor more than fifteen percent (15%) of the amount of the
employee’s Compensation.  Such elections may be changed during any Annual
Enrollment Period.

         
2.4.2            Automatic
Cancellation.  An employee’s Excess
Savings Agreement shall be automatically cancelled upon the Participant’s
termination of employment or, if the Participant remains an employee of the
Employer but is no longer in Recognized Employment, the employee’s Excess
Savings Agreement shall be automatically cancelled effective as of December 31
of the Plan Year in which the employee is no longer eligible to participate in
this Plan.

         
2.4.3            Voluntary
Cancellation.  An eligible employee who
has an Excess Savings Agreement in effect may cancel completely the Excess
Savings Agreement as of any December 31.  Written notice of the
cancellation must be delivered to the Employer during the Annual Enrollment
Period for the Plan Year in which the employee desires the cancellation to be
effective.

         
2.4.4            Form
of Agreement.  The Employer shall specify
the form of the Excess Savings Agreement, the form of any notices modifying the
Excess Savings Agreement, and all procedures for the delivery and acceptance of
forms and notices.

 

         
2.4.5            Employer
Administrative Error.  Notwithstanding
anything in this Section to the contrary, the Employer, in its sole discretion,
may modify or accept an eligible employee’s Excess Savings Agreement during the
Plan Year if the modification is necessary to correct an administrative error
made by the Employer or if the Plan Administrator has failed to initially
enroll the Participant as of January 1.  However, such modification shall
only be to the extent necessary to correct the error.

2.5     Specific
Exclusion.  Notwithstanding anything apparently to the
contrary in the Plan or in any written communication, summary, resolution or
document or oral communication, no individual shall be a Participant in the
Plan, develop benefits under the Plan or be entitled to receive benefits under
the Plan (either for the individual or the individual’s survivors) unless such
individual is a member of a select group of management or highly compensated
employees (as that expression is used in ERISA).  If a court of competent
jurisdiction, any representative of the U.S. Department of Labor or any other
governmental, regulatory or similar body makes any direct or indirect, formal
or informal, determination that an individual is not a member of a select group
of management or highly compensated employees (as that expression is used in
ERISA), such individual shall not be (and shall not have ever been) a
Participant in the Plan at any time.  If any individual not so defined has
been erroneously treated as a Participant in the Plan, upon discovery of such
error such individual’s erroneous participation shall immediately terminate ab
initio and upon demand such individual shall be obligated to reimburse the
Principal Sponsor for all amounts erroneously paid to that individual.

 

SECTION 3

ADDITIONS TO ACCOUNTS

3.1     Excess
Savings Additions.

         
3.1.1            Amount. 
The Employer shall credit each Participant’s Excess Savings Account with the
amount of deferred Compensation agreed to by each Participant pursuant to the
Participant’s Excess Savings Agreement.  No excess savings additions shall
be credited to an eligible employee’s account for a Plan Year prior to the date
the employee has either:  (i) contributed the maximum amount of voluntary
pretax elective deferrals to the Retirement Savings Plan allowable under
Section 402(g) of the Code for the Plan Year; or (ii) earned Compensation that
exceeds the limitations in Section 401(a)(17) of the Code for such Plan Year.

         
3.1.2            Crediting
the Account.  The amount of Excess Compensation deferred
with respect to each Participant shall be credited in dollar amounts to the
Participant’s Excess Savings Account as soon as administratively practicable
following the last payroll cycle of a month for which the Compensation was
deferred.

3.2     Fixed
Match Additions.

         
3.2.1            Amount.
 The Employer shall credit each eligible Participant’s Fixed Match Account
with an amount equal to one hundred percent (100%) of the first
six percent (6%) of reduction in Excess Compensation for each pay
period which was agreed to by the Participant pursuant to an Excess Savings
Agreement.

         
3.2.2            Crediting
the Account.  The fixed match addition which is made with
respect to a Participant shall be credited in dollar amounts to the
Participant’s Match Account as soon as administratively practicable following
the last payroll cycle of a month for which the fixed match is made.

         
3.2.3            Eligible
Participant.  For purposes of this Section
3.2, a Participant shall be an “Eligible Participant” for a Plan Year for any
payroll cycle beginning after the date such Participant has completed one year
of Eligibility Service (as determined under the Retirement Savings Plan) with
the Employer or an Affiliate.

3.3     Performance
Match Additions.

         
3.3.1            Amount. 
Each Plan Year, the Employer may (but shall not be required to) credit to each
eligible Participant’s Performance Match Account a percentage of the eligible
Participant’s Excess Compensation that is determined each Plan Year.  The
percentage shall be the performance match percentage, if any, determined for
making performance match contributions for the Plan Year under the Retirement
Savings Plan.  The amount, if any, credited to each eligible Participant’s
Performance Match Account for a Plan Year shall be a percentage (equal to the
Performance Match Contribution percentage under the Retirement Savings Plan for
such Plan Year) of the first six percent (6%) reduction in Excess Compensation
under this Plan which was agreed to by the Participant pursuant to an Excess
Savings Agreement.

 

         
3.3.2            Crediting
the Account.  The performance match addition which is made
with respect to an eligible Participant shall be credited in dollar amounts to
the Participant’s Performance Match Account as soon as administratively
practicable following the Annual Valuation Date in the Plan Year for which the
addition is made.

         
3.3.3            Eligible
Participant. 
For purposes of this Section 3.3, a Participant shall be an “eligible
Participant” for a Plan Year only if such Participant is on the last day of
such Plan Year an employee of the Employer or an Affiliate (including for this
purpose any Participant who then is on temporary layoff or authorized leave of
absence or who, during such Plan Year, was inducted into the Armed Forces of
the United States from employment with the Employer) and, prior to or during
such Plan Year, the Participant has completed one year of Eligibility Service
(as determined under the Retirement Savings Plan) with the Employer or an
Affiliate.

3.4     Transition
Benefit.

         
3.4.1            Amount. 
For a Plan Year in which an employee is eligible for a transition benefit under
this Plan, the Employer shall credit a Transition Benefit Account established
for such employee with an addition equal to the the employee's Excess
Compensation for such Plan Year multipled by the transition benefit percentage
determined for such employee under the Retirement Savings Plan for such Plan
Year.  However, any transition benefit to be allocated and credited to a
Participant’s Account which is in excess of the maximum permissible addition
which would have been contributed on behalf of the Participant under the
Retirement Savings Plan but for the limitation on annual additions imposed
under section 415 of the Code shall be credited not to this Plan but to
the ADC Telecommunications, Inc. Supplemental Retirement Plan.

         
3.4.2            Crediting
the Account. 
The transition benefit addition which is made with respect to a Participant
shall be credited in dollar amounts to the Participant’s Transition Benefit
Account as soon as administratively practicable following the last day of the
calendar month for which the addition is made.

3.5     Nonduplication
of Benefits.  The Plan shall be construed to prevent the
duplication of benefits provided under any other plan or arrangement, whether
qualified or nonqualified, funded or unfunded, to the extent that such other
benefits are provided directly or indirectly by the Employer.

 

SECTION 4

ESTABLISHMENT AND ADJUSTMENT OF
ACCOUNTS

4.1.    Participant
Accounts.

         
4.1.1.           Establishment
of Accounts.  The Committee shall cause a
bookkeeping account to be kept in the name of each Participant which shall
reflect the value the Participant deferral additions, fixed match additions,
performance match additions, transition benefit additions, and any earnings
thereon, credited to each Account of a Participant.

         
4.1.2.           Adjustment
of Accounts.  The Committee shall cause
the value of each Account to be increased (or decreased) from time to time for
distributions, additions, investment gains (or losses) and expenses charged to
the Account.

         
4.1.3.           Investment
of Accounts.  Except as provided in
Sections 4.2 and 4.3, amounts credited to a Participant’s Account will be
adjusted for gains and losses to the same extent that equal amounts would have
been adjusted if they had been invested as directed by the Participant in the
subfund or subfunds designated by the Committee.

         
4.1.4.           Rules.  The Committee shall establish additional rules
for the adjustment of Accounts, including the times when additions shall be
credited under Section 3 for the purpose of crediting gains or losses under
this Section 4.

4.2    
Dividend Adjustment for Phantom Stock.  At such time that
dividends are paid on common stock of the Employer, the Unit Shares credited to
the Participant’s Account, if any, shall be increased by crediting in Unit
Shares the amount of the dividend which would have been paid if the number of
Unit Shares had been shares of common stock of the Employer.

4.3    
Antidilution Adjustment for Phantom Stock.  In the event that
the outstanding shares of stock of the Employer, of whatever class or series,
are increased, decreased or changed into or exchanged for a different number or
kind of shares or other securities of the Employer or of another corporation by
reason of any reorganization, merger, consolidation, recapitalization,
reclassification, stock split-up, combination of shares, stock dividends or
otherwise, then the number of Unit Shares credited to the Participant’s
Account, if any, shall be adjusted so that the resulting number of Unit Shares
shall be in the same ratio to the original number of Unit Shares as the number
of shares of stock of the Employer, of whatever class or series, outstanding
immediately after the transaction described above giving rise to an adjustment
hereunder bears to the number of shares of stock of the Employer, of whatever
class or series, outstanding immediately prior to the transaction. 
Adjustments shall be made as are necessary to prevent dilution or enlargement
of the benefits credited under the Plan.

 

4.4     Not
Funded.  The obligations of the Employer to make
payments under this Plan constitutes only the unsecured (but legally
enforceable) promise of the Employer to make such payments, and the Participant
shall have no lien, prior claim or other security interest in any property of
the Employer.  No fund, trust or account (other than a bookkeeping account
or reserve) will be established or maintained by the Employer for the purpose
of funding or paying the benefits promised under this Plan.  If such a fund
is established, the property therein shall remain the sole and exclusive
property of the Employer.  The Employer will pay the cost of the Plan out
of its general assets.  All references to accounts, accruals, gains,
losses, income, expenses, payments, custodial funds and the like are included
merely for the purpose of measuring the Employer’s obligation to Participants
in the Plan and shall not be construed to impose on the Employer the obligation
to create any separate fund for purposes of the Plan.

 

SECTION
5

VESTING ACCOUNTS

5.1    
Full Vesting.  The Accounts of each Participant shall be
fully (100%) Vested at all times.

 

SECTION
6

MATURITY

6.1    
Events of Maturity.  A Participant’s Total Account shall mature and
shall become distributable in accordance with Section 7 upon the earliest
occurrence of any of the following events while in the employment of the
Employer of an Affiliate:

	
   
  	
  (a)
  	
  the Participant’s death,
  
	
   
  	
   
  	
   
  
	
   
  	
  (b)
  	
  the Participant’s termination of employment, whether
  voluntary or involuntary,
  
	
   
  	
   
  	
   
  
	
   
  	
  (c)
  	
  the Participant’s Disability, or
  
	
   
  	
   
  	
   
  
	
   
  	
  (d)
  	
  termination of the Plan;
  

provided, however, that a transfer from Recognized Employment to employment
with the Employer or an Affiliate that is other than Recognized Employment
shall not constitute an Event of Maturity.

6.2    
Effect of Maturity upon Further Participation in Plan. 
On the occurrence of an Event of Maturity, a Participant shall cease to have
any interest in the Plan other than the right to receive payment of all
Accounts as provided in Section 7, adjusted from time to time as provided in
Section 4.

 

SECTION
7

DISTRIBUTION

7.1    
Time of Distribution.  Upon the
occurrence of an Event of Maturity effective as to a Participant, the Employer
shall make or commence distribution of the Participant’s Total Account (reduced
by the amount of any applicable payroll, withholding and other taxes) as of one
of the following times as the Participant shall designate in writing prior to
the first Plan Year in which the Participant first receives additions to the
Participant’s Accounts.

(a)      Annual
Valuation Date.  Distribution may be made or commenced as of the
Annual Valuation Date coincident with or next following the Event of
Maturity.  Actual distribution shall be made or commenced in the calendar
month immediately following the Annual Valuation Date or as soon thereafter as
administratively feasible.

(b)      Quarterly
Valuation Date.  Distribution may be made or commenced as of the
quarterly Valuation Date coincident with or next following the Event of
Maturity.  Actual distribution shall be made or commenced in the calendar
month immediately following the quarterly Valuation Date or as soon thereafter
as administratively feasible.

7.2    
Modification of Initial Designation and Failure to Designate.

(a)      A Participant may
rescind the initial designation of the form of distribution made pursuant to
Sections 7.1 and 7.3 by making a new designation on a form designated by
the Employer, provided that such new designation is made no later than the last
day of the second Plan Year preceding the Plan Year in which distribution is to
commence. (By way of example, a participation who receives a distribution in
2002 must make a new designation no later than December 31, 2000 for the new
designation to be effective.)

(b)      A Participant who
fails to designate a time and form of distribution shall receive their
distribution in a single lump sum (pursuant to the rules of Sections 7.1
and 7.3) as of the quarterly Valuation Date coincident with or next following
their Event of Maturity.

7.3     Forms
of Distribution.  Distribution of the Participant’s Total
Account shall be made to the Participant or the Beneficiary entitled to receive
distribution (the “Distributee”) in one of the following ways as the
Participant shall designate in writing prior to the first Plan Year in which
the Participant first receives additions to the Participant’s Accounts.

(a)      Lump Sum. 
If the Distributee is either a Participant or a Beneficiary, in a single lump
sum.

 

(b)      Five Annual
Installments.  If the Distributee is a Participant, in a series of
substantially equal installments payable annually over a term of five (5)
years.  If the Distributee is a Beneficiary of a Participant and
distribution had commenced to the Participant over a five (5) year period, in a
series of substantially equal installments payable annually over the remainder
of the five (5) year period.  If the Distributee is a Beneficiary of a
Participant and distribution had not commenced prior to the Participant’s
death, in a series of substantially equal installments payable annually over a
term of five (5) years.

The amount of the installment distribution to be made in substantially equal
annual installments shall be determined by dividing the Account value as of the
Valuation Date of the installment distribution by the number of remaining
installments (including the installment being computed).

7.4     Distribution
in Cash.  The Employer shall make or commence distribution
of the Participant’s Total Account in cash.  The portion of the
Participant’s Account credited with Unit Shares of phantom stock to be
distributed as of a Valuation Date shall be converted to a dollar amount based
on the greater of: (a) the stock price on the last day of the calendar quarter
preceding payment, or (b) an average stock price used by the Trustee to
purchase stock for the Retirement Savings Plan for the calendar quarter
preceding payment.

7.5     280G
Limitation.  The amount of any cash distribution to be
received by the Participant under the Plan shall be reduced (but not below
zero) by the amount, if any, necessary to prevent any part of any payment or
benefit received or to be received by the Participant in connection with a
Change of Control of the Employer (as defined in Section 9.2) or the
termination of the Participant’s employment (whether payable under the terms of
the Plan or any other plan, contract, agreement or arrangement with the
Employer, with any person whose actions result in a Change in Control of the
Employer or with any person constituting a member of an “affiliated group” (as
defined in section 280G(d)(5) of the Code)), with the Employer or with any
person whose actions result in a Change in Control of the Employer (such
foregoing payments or benefits referred to collectively as the “Total
Payments”) from being treated as an “excess parachute payment” within the
meaning of section 280G(b)(1) of the Code, but only if and to the extent such
reduction will also result in, after taking into account all applicable state
or federal taxes (computed at the highest marginal rate) including any taxes
payable pursuant to section 4999 of the Code, a greater after-tax benefit to
the Participant than the after-tax benefit to the Participant of the Total
Payments computed without regard to any such reduction.  For purposes of
the foregoing, (a) no portion of the Total Payments shall be taken into account
which in the opinion of tax counsel selected by the Employer and acceptable to
the Participant does not constitute a “parachute payment” within the meaning of
section 280G(b)(2) of the Code; (b) any reduction in payments under the Plan
shall be computed by taking into account that portion of the Total Payments
which constitute reasonable compensation within the meaning of section
280G(b)(4)(B) of the Code in the opinion of such tax counsel; (c) the value of
any non-cash benefit or of any deferred cash payment included in the Total
Payments shall be determined by the Employer in accordance with the principles
of section 280G(d)(3) and (4) of the Code; and (d) in the event of any
uncertainty as to whether a reduction in Total Payments to the Participant is
required under the Plan, the Employer shall initially make the payment to the
Participant and the Participant shall agree to refund to the Employer any
amounts ultimately determined not to have been payable under the terms of this
Section.

 

7.6    
Designation of Beneficiaries.

         
7.6.1            Right
To Designate.  Each Participant may designate, upon forms to
be furnished by and filed with the Employer, one or more primary Beneficiaries
or alternative Beneficiaries to receive all of a specified part of the
Participant’s Total Account in the event of the Participant’s death.  The
Participant may change or revoke any such designation from time to time without
notice to or consent from any Beneficiary or spouse.  No such designation,
change or revocation shall be effective unless executed by the Participant and
received by the Employer during the Participant’s lifetime.

         
7.6.2            Failure
of Designation.  If a Participant:

	
   
  	
  (a)
  	
  fails to designate a Beneficiary,
  
	
   
  	
   
  	
   
  
	
   
  	
  (b)
  	
  designates a Beneficiary and thereafter such designation
  is revoked without another Beneficiary being named, or
  
	
   
  	
   
  	
   
  
	
   
  	
  (c)
  	
  designates one or more Beneficiaries and all such
  Beneficiaries so designated fail to survive the Participant,
  

such Participant’s Total Account, or the part thereof as to which such
Participant’s designation fails, as the case may be, shall be payable to the
first class of the following classes of automatic Beneficiaries with a member
surviving the Participant and (except in the case of the Participant’s
surviving issue) in equal shares if there is more than one member in such class
surviving the Participant:

	
   
  	
  Participant’s surviving spouse
  
	
   
  	
  Participant’s surviving issue per stirpes and not per
  capita
  
	
   
  	
  Participant’s surviving parents
  
	
   
  	
  Participant’s surviving brothers and sisters
  
	
   
  	
  Representative of Participant’s estate.
  

         
7.6.3            Disclaimers
of Beneficiaries.  A Beneficiary entitled to a distribution of
all or a portion of a deceased Participant’s Total Account may disclaim his or
her interest therein subject to the following requirements.  To be
eligible to disclaim, a Beneficiary must be a natural person, must not have
received a distribution of all or any portion of a Total Account at the time
such disclaimer is executed and delivered, and must have attained at least age
twenty-one (21) years as of the date of the Participant’s death.  Any
disclaimer

must be in writing and must be executed personally by the Beneficiary before
a notary public.  A disclaimer shall state that the Beneficiary’s entire
interest in the undistributed Total Account is disclaimed or shall specify what
portion thereof is disclaimed.  To be effective, duplicate original
executed copies of the disclaimer must be both executed and actually delivered
to the Employer after the date of the Participant’s death but not later than
nine (9) months after the date of the Participant’s death.  A
disclaimer shall be irrevocable when delivered to the Employer.  A
disclaimer shall be considered to be delivered to the Employer only when
actually received by the Employer.  The Employer shall be the sole judge
of the content, interpretation and validity of a purported disclaimer. 
Upon the filing of a valid disclaimer, the Beneficiary shall be considered not
to have survived the Participant as to the interest disclaimed.  A
disclaimer by a Beneficiary shall not be considered to be a transfer of an
interest in violation of the provisions of Section 8 and shall not be
considered to be an assignment or alienation of benefits in violation of
federal law prohibiting the assignment of alienation of benefits under this
Plan.  No other form of attempted disclaimer shall be recognized by the
Employer.

         
7.6.4            Definitions. 
When used herein and, unless the Participant has otherwise specified in his or
her Beneficiary designation, when used in a Beneficiary designation, “issue”
means all persons who are lineal descendants of the person whose issue are
referred to, including legally adopted descendants and their descendants but
not including illegitimate descendants and their descendants; “child” means an
issue of the first generation; “per stirpes” means in equal shares among living
children of the person whose issue are referred to and the issue (taken
collectively) of each deceased child of such person, with such issue taking by
right of representation of such deceased child; and “survive” and “surviving”
mean living after the death of the Participant.

         
7.6.5            Special
Rules.  Unless the Participant has otherwise specified
in his or her Beneficiary designation, the following rules shall apply:

(a)      If there is not
sufficient evidence that a Beneficiary was living at the time of the death of
the Participant, it shall be deemed that the Beneficiary was not living at the
time of the death of the Participant.

(b)      The automatic
Beneficiaries specified in Section 7.6.2. and the Beneficiaries designated by
the Participant shall become fixed at the time of the Participant’s death so
that, if a Beneficiary survives the Participant but dies before the receipt of
all payments due such Beneficiary hereunder, such remaining payments shall be
payable to the representative of such Beneficiary’s estate.

(c)      If the
participant designates as a Beneficiary the person who is the Participant’s
spouse on the date of the designation, either by name or by relationship, or
both, the dissolution, annulment or the legal termination of marriage between
the Participant and such person shall automatically revoke such
designation.  (The foregoing shall not prevent the Participant from
designation a former spouse as a Beneficiary on a form executed by the
Participant and received by the Employer after the date of the legal
termination of marriage between the Participant and such former spouse, and
during the Participant’s lifetime.)

(d)      Any designation
of a nonspouse Beneficiary by name that is accompanied by a description of
relationship to the Participant shall be given effect without regard to whether
the relationship to the Participant exists either then or at the Participant’s
death.

(e)      Any designation
of a Beneficiary only by Statement of relationship to the Participant shall be
effective only to designate the person or persons standing in such relationship
to the Participant at the Participant’s death.

A Beneficiary designation is permanently void if it either is executed or is
filed by a Participant who, at the time of such execution or filing, is then a
minor under the law of the state of the Participant’s legal residence. 
The employer shall be the sole judge of the content, interpretation and
validity of a purported Beneficiary designation.

         
7.6.6            Spousal
Rights.  No spouse or surviving spouse of a Participant
and no person designated to be a Beneficiary shall have any rights or interest
in the benefits accumulated under the Plan including, but not limited to, the
right to be the sole Beneficiary or to consent to the designation of
Beneficiaries (or the changing of designated Beneficiaries) by the Participant.

7.7    
Death Prior to Full Distribution.  If a Participant
dies after an Event of Maturity but before distribution of the Participant’s
Total Account has been completed, the remainder of the undistributed Total
Account shall be distributed in the same manner as hereinbefore provided in the
Event of Maturity by reason of death.  If, at the death of the
Participant, any payment to the Participant was due or otherwise pending but
not actually paid, the amount of such payment shall be included in the Total
Account which is payable to the Beneficiary (and shall not be paid to the
Participant’s estate).

7.8    
Facility of Payment.  In case of the
legal disability, including minority, or a Participant or Beneficiary entitled
to receive any distribution under the Plan, payment shall be made, if the
Employer shall be advised of the existence of such condition:

(a)      to the duly
appointed guardian, conservator or other legal representative of such
Participant or Beneficiary, or

(b)      to a person or
institution entrusted with the care or maintenance of the incompetent or
disabled Participant or Beneficiary, provided such person or institution has
satisfied the Employer that the payment will be used for the best interest and
assist in the care of such Participant or Beneficiary, and provided further,
that no prior claim for said payment has been made by a duly appointed
guardian, conservator or other legal representative of such Participant of
Beneficiary.

Any payment made in accordance with the foregoing provisions of this Section
shall constitute a complete discharge of any liability or obligation of the
Employer.

 

SECTION
8

SPENDTHRIFT PROVISIONS

No Participant or Beneficiary shall have any transmissible interest in any
Account nor shall any Participant or Beneficiary have any power to anticipate,
alienate, dispose of, pledge or encumber the same while in possession or
control of the Employer, nor shall the Employer recognize any assignment
thereof, either in whole or in part, nor shall any Account be subject to
attachment, garnishment, execution following judgment or other legal process
while in the possession or control of the Employer.

The power to designate Beneficiaries to receive the Total Account of a
Participant in the event of the Participant’s death shall not permit or be
construed to permit such power or right to be exercised by the Participant so
as thereby to anticipate, pledge, mortgage or encumber the Participant’s
Account or any part thereof, and any attempt of a Participant so to exercise
said power in violation of this provision shall be of no force and effect and
shall be disregarded by the Employer.

This Section shall not prevent the Employer from exercising, in its
discretion, any of the applicable powers and options granted to them upon the
occurrence of an Event of Maturity, as such powers may be conferred upon them
by any provision hereof.

 

SECTION
9

AMENDMENT AND TERMINATION

9.1    
Amendment and Termination.  The
Compensation  and Organization Committee of the Board of Directors of ADC
Telecommunications, Inc. hereby reserves the power to unilaterally amend the
Plan Statement and to partially terminate or totally terminate the Plan and to
reduce, suspend or discontinue its additions to the Plan, either prospectively
or retroactively or both; provided that no amendment or termination shall be
effective to reduce or divest the Accounts of any Participant without such
Participant’s consent.  The Retirement Committee is authorized to amend
the Plan Statement in any respect that does not materially increase the cost of
the Plan.

9.2    
Change in Control.

         
9.2.1            In
General.  Notwithstanding any other provision of the
Plan Statement, Section 9.2.3, Section 9.2.4, Section 9.2.5 and Section 9.2.6
shall take effect if and only if a Maturity Date (as defined in the Retirement
Savings Plan) occurs effective as to this Plan following a Change in
Control.  A Maturity Date cannot occur if there is no Change in
Control.  A Maturity Date effective as to this Plan does not occur merely
because there is a Change in Control or merely because a Maturity Date occurs
effective as to the Retirement Savings Plan.  A Maturity Date following a
Change in Control must be effective as to this Plan.

         
9.2.2            Special
Definitions.  For purposes of this Section 9.2, the special
definitions in Section 9.5.2 of the Retirement Savings Plan shall apply.

         
9.2.3            Amendment. 
Notwithstanding any other provision of the Plan Statement, during the two (2)
years following the date of a Change in Control, the provisions of the Plan
Statement may not be amended if any amendment would adversely affect the
rights, expectancies or benefits provided by the Plan (as in effect immediately
prior to the Change in Control), of any Participant, Beneficiary or other person
entitled to payments under the Plan.  The Plan may not be terminated or
merged with any other plan during the same two (2) year period.

         
9.2.4            Termination
of Employment.  Notwithstanding any other provision of the
Plan Statement, the Total Account of any Participant actively employed on the
date of a Change in Control who terminates employment for any reason including
Good Reason, death, disability (as defined in section 22(e)(3) of the Code) or
Cause during the two (2) years following the date of the Change in Control
shall be distributed in a single lump sum cash payment as soon as
administratively feasible after such termination.

         
9.2.5            Pending
Distributions.  Notwithstanding any other provision of the
Plan Statement, any distribution (whether lump sum or installment) which is
pending but which has not actually been made or commenced on the date of a
Change in Control shall be distributed in a single lump sum cash payment as
soon as administratively feasible after the date of the Change of Control.

 

         
9.2.6            Commutation
of Installments.  Notwithstanding any other provision of the
Plan Statement, any remaining installments due to any Participant who
terminated employment before the date of a Change of Control shall be
distributed in a single lump sum cash payment as soon as administratively
feasible after the date of the Change of Control.

         
9.2.7            Not
Amendable.  Notwithstanding any other provision of the
Plan Statement, this Section 9.2 may not be amended to decrease any of the
benefits which it provides during the two (2) years following the date of a
Change in Control without the affirmative written consent of a majority in both
number and interest of the Participants actively employed on the date of the
Change in Control.

SECTION
10

ADMINISTRATION

10.1   Authority. 
The Plan shall be administered by the Committee, which shall have full
discretionary power and authority to administer and interpret the Plan and to
determine all factual and legal questions under the Plan, including but not
limited to the entitlement of Participants and Beneficiaries, and the amount of
their respective interests.  The Committee may delegate or redelegate to
one or more persons, jointly or severally, and whether or not such persons are
members of the Committee or employees of the Employer, such functions assigned
to the Committee hereunder as it may from time to time deem advisable.

10.2   Liability. 
No member of the Committee and no director or member of the management of the
Employer shall be liable to any persons for any actions taken under the Plan,
or for any failure to effect any of the objective or purposes of the Plan, by
reason of insolvency or otherwise.

10.3   Procedures. 
The Committee may from time to time adopt such rules and procedures as it deems
appropriate to assist in the administration of the Plan.

10.4   Claim
for Benefits.  No employee or other person shall have any
claim or right to payment of any amount hereunder until payment has been
authorized and directed by the Committee.

10.5   Claims
Procedure.  Until modified by the Committee, the claims
procedure set forth in this Section 10.5 shall be the claims procedure for
the resolution of disputes and disposition of claims arising under the Plan.

         
10.5.1          Original
Claim.  Any employee, former employee, or Beneficiary
of such employee or former employee may, if the employee, former employee or
Beneficiary so desires, file with the Committee a written claim for benefits
under the Plan.  Within ninety (90) days after the filing of such a claim,
the Committee shall notify the claimant in writing whether the claim is upheld
or denied in whole or in part or shall furnish the claimant a written notice
describing specific special circumstances requiring a specified amount of
additional time (but not more than one hundred eighty (180) days from the date
the claim was filed) to reach a decision on the claim.  If the claim is
denied in whole or in part, the Committee shall state in writing:

	
   
  	
  (a)
  	
  the specific reasons for the denial,
  
	
   
  	
   
  	
   
  
	
   
  	
  (b)
  	
  the specific references to the pertinent provisions of
  this Plan on which the denial is based,
  
	
   
  	
   
  	
   
  
	
   
  	
  (c)
  	
  a description of any additional material or information
  necessary for the claimant to perfect the claim and an explanation of why
  such material or information is necessary, and
  
	
   
  	
   
  	
   
  
	
   
  	
  (d)
  	
  an explanation of the claims review procedure set forth in
  this Section.
  

 

         
10.5.2          Claims Review
Procedure.  Within sixty (60) days after receipt of notice
that the claim has been denied in whole or in part, the claimant may file with
the Committee a written request for a review and may, in conjunction therewith,
submit written issues and comments.  Within sixty (60) days after the
filing of such a request for review, the Committee shall notify the claimant in
writing whether, upon review, the claim was upheld or denied in whole or in
part or shall furnish the claimant a written notice describing specific special
circumstances requiring a specified amount of additional time (but not more
than one hundred twenty days (120) from the date the request for review was
filed) to reach a decision on the request for review.

         
10.5.3          General
Rules.

(a)      No inquiry or
question shall be deemed to be a claim or a request for a review of a denied
claim unless made in accordance with the claims procedure.  The 
Committee may require that any claim for benefits and any request for a review
of a denied claim be filed on forms to be furnished by the Committee upon
request.

(b)      All decisions on
original claims shall be made by the Committee and requests for a review of
denied claims shall be made by the Committee.

(c)      The Committee
may, in its discretion, hold one or more hearings on a claim or a request for a
review of a denied claim.

(d)      Claimants may be
represented by a lawyer or other representative at their own expense, but the
Committee reserves the right to require the claimant to furnish written
authorization.  A claimant=s representative shall be entitled to copies of
all notices given to the claimant.

(e)      The decision of
the Committee on an original claim or on a request for a review of a denied
claim shall be served on the claimant in writing.  If a decision or notice
is not received by a claimant within the time specified, the claim or request
for a review of a denied claim shall be deemed to have been denied.

(f)       Prior to
filing a claim or a request for a review of a denied claim, the claimant or the
claimant=s representative shall have a reasonable opportunity to review a copy
of this Plan Statement and all other pertinent documents in the possession of
the Employer and its Affiliates.

10.6   Errors in
Computations.  The Committee shall not be liable or
responsible for any error in the computation of any benefit payable to or with
respect to any Participant resulting from any misstatement of fact made by the
Participant or by or on behalf of any Beneficiary to whom such benefit shall be
payable, directly or indirectly, to the Committee, and used by the Committee in
determining the benefit.  The Committee shall not be obligated or required
to increase the benefit payable to or with respect to such Participant which, on
discovery of the misstatement, is found to be understated as a result of such
misstatement of the Participant.  However, the benefit of any Participant
which is overstated by reason of any such misstatement or any other reason
shall be reduced to the amount appropriate in view of the truth (and to recover
any prior overpayment).

 

SECTION
11

PLAN ADMINISTRATION

11.1   Principal
Sponsor.

         
11.1.1          Officers. 
Except as hereinafter provided, functions generally assigned to the Principal
Sponsor shall be discharged by its Compensation and Organization Committee of
the Board of Directors of ADC Telecommunications, Inc. or delegated and
allocated as provided herein.

         
11.1.2          Compensation
and Organization Committee.  Except as
hereinafter provided, the Compensation and Organization Committee of the Board
of Directors of ADC Telecommunications, Inc. may delegate and redelegate and
allocate and reallocate to one or more persons or to an Employer of persons
jointly or severally, and whether or not such persons are directors, officers
or employees, such functions assigned to the Principal Sponsor hereunder as the
Compensation and Organization Committee of the Board of Directors of ADC
Telecommunications, Inc. may from time to time deem advisable.

         
11.1.3          Board of
Directors.  Notwithstanding the foregoing, the
Compensation and Organization Committee of the Board of Directors of ADC
Telecommunications, Inc. shall have exclusive authority, which may not be
delegated, to act for the Principal Sponsor to terminate this Plan.

         
11.1.4          Amendment. 
The Principal Sponsor reserves the power to amend this Plan Statement in any
respect and either prospectively or retroactively or both:

(a)      in any respect by
resolution of its Compensation and Organization Committee of the Board of
Directors of ADC Telecommunications, Inc.; and

(b)      in any respect
that does not materially increase the cost of the Plan by action of the
Retirement Committee.

11.2   Conflict
of Interest.  If any officer or employee of the Employer or
any member of the board of directors of the Employer to whom authority has been
delegated or redelegated hereunder shall also be a Participant in the Plan, the
Participant shall have no authority as such officer, employee or member with
respect to any matter specially affecting the Participant’s individual interest
hereunder (as distinguished from the interests of all Participants and
Beneficiaries or a broad class of Participants and Beneficiaries), all such
authority being reserved exclusively to the other officers, employees or
members as the case may be, to the exclusion of the Participant and the
Participant shall act only in the Participant’s individual capacity in
connection with any such material.

11.3   Administrator. 
The Principal Sponsor shall be the administrator for purposes of
Section 3(16)(A) of ERISA.

 

11.4   Service
of Process.  In the absence of any designation to the
contrary by the Principal Sponsor, the Secretary of the Principal Sponsor is
designated as the appropriate and exclusive agent for the receipt of service of
process directed to the Plan in any legal proceeding, including arbitration,
involving the Plan.

SECTION
12

DISCLAIMERS

12.1   Term
of Employment.  Neither the terms of the Plan Statement nor
the benefits hereunder nor the continuance thereof shall be a term of the
employment of any employee.  The Employer shall not be obliged to continue
the Plan.

12.2   Employment. 
The terms of the Plan Statement shall not give any employee the right to be
retained in the employment of the Employer.

12.3   Source
of Payment.  Neither the Employer nor any of its officers
nor any member of its board of directors in any way secure or guarantee the
payment of any benefit or amount which may become due and payable hereunder to
any Participant or to any Beneficiary or to any creditor of a Participant or a
Beneficiary.  Each Participant, Beneficiary or other person entitled at
any time to payments hereunder shall look solely to the assets of the Employer
for such payments or to the Accounts distributed to any Participant or
Beneficiary, as the case may be, for such payments.  In each case where
Accounts shall have been distributed to a former Participant or a Beneficiary
or to the person or any one of a group of persons entitled jointly to the
receipt thereof and which purports to cover in full the benefit hereunder, such
former Participant or Beneficiary, or such person or persons, as the case may
be, shall have no further right or interest in the other assets of the
Employer.

12.4   Guaranty. 
Neither the Employer nor any of its officers nor any member of its board of
directors shall be under any liability or responsibility for failure to effect
any of the objectives or purposes of the Plan by reason of the insolvency of
the Employer.

12.5   Delegation. 
The Employer and its officers and the members of its board of directors shall
not be liable for an act or omission of another person with regard to a
responsibility that has been allocated to or delegated to such other person
pursuant to the terms of the Plan Statement or pursuant to procedures set forth
in the Plan Statement.Prepared by MerrillDirect

 

EMPLOYMENT
AGREEMENT

         
AGREEMENT by and between ADC
Telecommunications, Inc., a Minnesota corporation  (the
“Company”), and RICHARD R. ROSCITT
(the “Executive“), dated as of the 28th day of January, 2001.

         
1.       Employment Period. 
The Company hereby agrees to employ the Executive and the Execu­tive hereby
agrees to become employed and remain in the employ of the Company, pursuant to
the terms and conditions set forth in this Agreement.  The Executive’s
employment hereunder shall commence on February 15, 2001 (the “Commencement
Date”) and shall continue until the Executive’s employment terminates pursuant
to Section 4 of this Agreement (the “Employment Period”).

         
2.       Position and Duties.

         
(a)      The Executive agrees to serve
as the Chief Executive Officer worldwide and to perform such duties (i) as are
set forth for that position in the By-laws of the Company’s Board of Directors
(the “Board”), (ii) as the Board shall assign to the Executive from time to
time, and (iii) that the Executive undertakes or accepts consistent with his
position as Chief Executive Officer.  The Executive acknowledges and
agrees that, from time to time, he will be required to perform duties with
respect to one or more of the Company’s subsidiary or affiliate companies (each
an “Affiliate”), and that he will not be entitled to any additional
compensation for performing those duties.

         
(b)      The Company intends that the Board
will elect the Executive to serve as the Chairman of the Board at the first
Board meeting following the annual meeting of shareholders to be held on
February 27, 2001, and the Executive agrees to serve in that position in
accordance with the By-laws of the Board.

 

         
(c)      During the Employment Period, and excluding
any periods of vacation, holiday, personal leave and sick leave to which the
Executive is entitled, the Executive agrees to serve the Company faithfully and
to the best of his ability and to devote the Executive’s full time, attention and
efforts to the business and affairs of the Company.  The Executive hereby
confirms to the best of his knowledge and belief that he is under no
contractual commitments inconsistent with his obligations set forth in this
Agreement and that, during the Employment Period, the Executive will not render
or perform any services for any other corporation, firm, entity or person which
are inconsistent with the provisions of this Agreement, with any policy of the
Company, or which would otherwise impair the Executive’s ability to perform his
duties hereunder.  The rest of this Section 2(c) notwithstanding, the
Executive may (i) serve on the boards of profit or non-profit corporations (the
Executive shall obtain approval to serve on such a board in accordance with all
of the Company’s policies, including, without limitation, the Company’s
Business Conduct Policy regarding Conflicts of Interest), (ii) deliver lectures
or fulfill speaking engagements, and (iii) manage personal investments, so long
as the activities referred to in clauses (i) through (iii) above do not
substantially interfere with the performance of the Executive’s
responsibilities under this Agreement.

         
(d)      The Executive’s primary office shall be
located in the greater Twin Cites metropolitan area; provided, that the
Executive’s primary office location may be relo­cated in connection with the
relocation of the Company’s headquarters, subject to reimbursement for
Executive’s reasonable expenses in connection with any move he is required to
make.

         
3.       Compensation.

         
(a)      Base Salary. As his
initial base compensation for all services he renders under this Agreement, the
Executive shall receive an annualized base salary (“Annual Base Salary”) of
$900,000.  The Annual Base Salary shall be paid in accordance with the
Company’s normal payroll procedures and policies, as such procedures and
policies may be modified from time to time.  The Annual Base Salary shall
be reviewed and adjusted (upward only) in the sole discretion of the Board’s
Compensation and Organization Committee (the “Committee”) according to a
schedule and in a manner consistent with the Company’s practices for salary
adjustment, as those practices may be revised from time to time (and which
practices may include review of factors such as market conditions and total
compensation paid to similar executives at peer and other companies).

         
(b)      Incentive Compensation.
The Executive shall be eligible to participate in any Management Incentive Plan
(“MIP”) the Company establishes, according to the targets and goals, which
shall be discussed in advance with the Executive, and the terms and conditions
the Company establishes to govern the MIP for any fiscal year.  For each
fiscal year MIP beginning in fiscal year 2001, the Executive’s target incentive
compensation shall be not less than one hundred percent (100%) of the Annual
Base Salary actually paid to the Executive during that fiscal year (“Target
Incentive”).  The maximum amount of any annual MIP award shall be three
times the Target Incentive.

         
(c)      New Hire Bonus. On the
first day of the Employment Period, the Executive will earn the right to be
paid one million five hundred thousand dollars ($1,500,000), less all
appropriate and necessary withholdings and deductions, which payment will be
paid within five (5) days of it being earned.

         
(d)      Restricted Cash Compensation. 
The Executive will earn the right to be paid the sum of five million five
hundred thousand dollars ($5,500,000), less all appropriate deductions and
withholdings, according to the vesting schedule set forth below.  Except
in the case of any termination in which the Executive, pursuant to Sections 5
and 6 of this Agreement, may earn the right to be paid unpaid portions of this
restricted cash compensation, the Executive agrees that he must be actively
employed on each vesting date in order to vest in and earn the payment to be
made on that date.

 

 

	
    
  	
    
  	
  Restricted
  Cash Compensation Vesting Schedule
  
  

  
  
	
    
  	
    
  	
  Sum 
  
  

  
  	
  Vesting Date 
  
  

  
  
	
    
  	
  ·

  	
  $1,500,000 
  	
  First anniversary of Commencement Date 
  
	
    
  	
  ·

  	
  $1,330,000 
  	
  Second anniversary of Commencement Date 
  
	
    
  	
  ·

  	
  $1,330,000 
  	
  Third anniversary of Commencement Date 
  
	
    
  	
  ·

  	
  $1,340,000 
  	
  Fourth anniversary of Commencement Date 
  
	 
  	 
  	 
  	 
  	 
  

         
(e)      Executive Incentive Exchange
Plan.  Beginning on the first day of the Company’s 2002 fiscal year,
the Executive will be eligible to participate in the Company’s Executive
Incentive Exchange Plan, according to the terms of that Plan, as the same may
be amended from time to time.

         
(f)       Benefit Plans.
During the Employment Period, the Executive shall be entitled to participate in
the employee benefits offered generally by the Company to its executive
employees, to the extent that the Executive’s position, tenure, salary, health,
and other qualifications make the Executive eligible to participate. The
Executive’s participation in such benefits shall be subject to the terms of the
applicable plans, as the same may be amended from time to time.  The
Company does not guarantee the adoption or continuance of any particular
employee benefit or benefit plan during the Employment Period, and nothing in
this Agreement is intended to, or shall in any way restrict the right of the Company,
to amend, modify or terminate any of its benefits or benefit plans during the
Employment Period.

         
(g)      Stock Options.  To
compensate Executive for forfeited stock option opportunities provided by his
prior employer, and as a long-term incentive, the Executive will be eligible
for the following stock options during his employment:

         
(i)       New Hire Options.

         
(A)     Non-Premium Option. The
Committee will approve the grant to Executive of an option to purchase shares of
the Company’s common stock, which option will have a face value of $16,772,900,
and be in accordance with the terms of the ADC 1991 Stock Incentive Plan, as
the same may be amended from time to time, and a non-qualified stock option
agreement to be entered into by the Executive and the Company.  The
exercise price for this option shall be the price of the Company’s common stock
on the last day of the month in which occurs the Commencement Date. 

         
(B)     Premium Options.  The
Committee will approve a grant to Executive of three (3) “premium” options to
purchase shares of the Company’s common stock, at the exercise prices set forth
below, which options will have an aggregate total face value of $10,379,900,
and be granted in accordance with the terms of the ADC 1991 Stock Incentive
Plan, as the same may be amended from time to time, and non-qualified stock
option agreements to be entered into by the Executive and the Company.

	
    
  	
    
  	
  Grant
  
  

  
  	
  Exercise Price 
  
  

  
  
	
    
  	
  ·

  	
  Grant of 1/3 of all
  Premium options 
  	
  20% above FMV 
  
	
    
  	
  ·

  	
  Grant of 1/3 of all
  Premium options 
  	
  35% above FMV 
  
	
    
  	
  ·

  	
  Grant of 1/3 of all
  Premium options 
  	
  45% above FMV 
  

 

         
The fair market value (“FMV”) of each of the premium option
grants shall be the price of the Company’s common stock on the last day of the
month in which occurs the Commencement Date.  The premium options shall
vest on the fourth (4th) anniversary of the grant date and shall
expire seven (7) years after the grant date.

         
(ii)      Annual Option Grants. 
At the beginning of each of fiscal year 2002 and 2003, the Committee will grant
the Executive an option to purchase shares of the Company’s common stock, which
option shall have a Black Scholes value of $5 million dollars, as determined by
the Company in a manner consistent with the method used to determine the face
value of the new hire option “non-premium option” described in Section
3(g)(i)(A), above.  Each grant shall be in accordance with the terms of
the ADC 1991 Stock Incentive Plan, as the same shall be amended from time to
time, and stock option agreements to be entered into by the Executive and the
Company.  Each annual grant of stock options for fiscal year 2002 and 2003
shall be designated as incentive stock options to the maximum extent permitted
by the Internal Revenue Code of 1986, as amended, and the remainder shall be
designated as non-qualified stock options.

 

         
(h)      Expenses.  During
the Employment Period, the Executive shall be entitled to reimbursement for all
reasonable business expenses he incurs in carrying out his duties under this
Agreement in accordance with the policies and practices of the Company,
provided that the Executive complies with the policies and practices of the
Company for submission of expense reports, receipts, or similar documentation
of such expenses as implemented from time to time by the Company.  During
the Employment Period, the Executive may charter a private jet at Company
expense whenever the Executive has a reasonable, good faith belief that such
charter is in the Company’s best interest as compared to scheduled commercial
flights.

         
(i)       Paid Time Off. 
The Executive shall be entitled to at least five (5) weeks of paid time off
(“PTO”) during each 12-month period of the Employment Period, to be accrued and
taken in accordance with the Company’s PTO Policy, as the same may be amended
from time to time.  The Executive may accrue up to two (2) times the
annual PTO award.

         
(j)       Executive Perquisites. 
The Executive will be eligible to receive any executive perquisites that the
Company may from time to time deem are appropriate and administratively
feasible to provide to its executives, generally or to the Executive,
specifically.  The Executive understands that the Company may in its sole
discretion modify or terminate any executive perquisite offered to the
Executive.  Those perquisites shall include:

         
(i)       $24,000 annual perquisite
allowance, paid at a rate of $2,000 per month, to cover additional benefits
that will best meet the Executive’s personal needs;

         
(ii)      payment of club membership and
monthly fees; and

         
(iii)     beginning on January 1, 2002,
eligibility to participate in the Company’s 401(k) Excess Plan, according to
the terms of that Plan, as the same may be amended from time to time.

 

         
4.       Termination of
Employment.  The Executive’s employment under this Agreement may be
terminated during the Employment Period as described in this Section 4.

         
(a)      Death or Disability. 
The Executive’s employment shall terminate automatically upon the Executive’s
death.  The Executive’s employment shall terminate for “Disability” if the
Executive, due to illness or physical or mental incapacity, is unable to
perform the duties of the Executive’s position under this Agreement for a
period of 26 consecutive weeks.

         
(b)      Termination By the Company.  The
Company may terminate the Executive’s employ­ment for Cause or without Cause. 
For purposes of this Agreement, “Cause” shall mean the Executive’s (i)
convictionof or plea of nolo contendre to a felony or to any crime involving
moral turpitude; (ii) willful mis­conduct that causes, or in the reasonable
judgment of the Board creates a significant risk of, substantial injury to the
Company; (iii) repeated failure to undertake communicated directives on
substantial business matters issued through written instruction to do so by the
Board; and (iv) any willful breach of this Agreement that causes, or in the
reasonable judgment of the Board creates a significant risk of, substantial
injury to the Company.

         
Notwithstanding the foregoing, the Executive shall not be deemed
to have been terminated for Cause unless the Company provides the Executive (a)
no less than ten (10) days prior written notice setting forth the reasons for
the Company’s intention to terminate for Cause, (b) an opportunity for the
Executive to be heard (together with comments of counsel) by the Board, and (c)
delivery of a notice of termination from the Board stating with specificity its
conclusion that the Executive committed the act(s) or omission(s) establishing
Cause to terminate the Executive’s employment.

          
(c)      Termination By the Executive. 
The Executive may terminate his employment for Good Rea­son or without Good
Reason.  “Good Reason” will exist in the event that the Company, without
the Executive’s written consent: (i) institutes a material adverse change in
the Executive’s title or in the duties assigned to the Executive, which will
include, without limitation, that the Board fails to elect him as Chairman of
the Board; (ii) requires the Executive to relocate his principal residence to a
location other than the Twin Cities metropolitan area, except in connection
with the move of the Company’s headquarters;  (iii) reduces the total
amount of the Executive’s annual target cash compensation (i.e., the Annual
Base Salary plus the annual MIP Target Incentive) for any fiscal year; or (iv)
substantially fails to comply with the provisions of Section 3; provided, that
an unintentional failure to comply or a failure to comply that results from
administrative oversight shall not give rise to Good Reason, if such failure is
promptly corrected.  The Executive shall have Good Reason to terminate his
employment if (i) within forty-five (45) days following the Executive’s actual
knowledge of the event which the Executive determines consti­tutes Good Reason,
he notifies the Company in writing that he has determined a Good Reason exists
and specifies the event creating Good Reason, and (ii) fol­lowing receipt of
such notice, the Company fails to remedy such event within forty-five (45)
days.  If either condition is not met, the Executive shall not have a Good
Reason to terminate his employment.

         
(d)      Date of Termination. 
“Date of Termination” means (i) if the Executive’s employment is terminated by
the Company (other than for Cause, death or Disabil­ity) or by the Executive
for Good Reason, the thirtieth (30th) day after the mailing of the
notice of termination or any later date specified therein; (ii) if the
Executive’s employment is terminated for Cause, the date set forth on the
notice of termination sent by the Board in accordance with Section 4(b); (iii)
if the Executive’s employment terminates by reason of death, the date of death
of the Executive, or if by reason of, Disability, the date of the determination
of Disability as set forth in Section 4(a); or (iv) if the Executive terminates
his employment without Good Reason, thirty (30) days after mailing of the
notice of termination or any later date specified therein (in the case of a
notice of termination sent pursuant to part (iv), the Company may request that
the Executive cease providing services during the notice period).

         
(e)      Continuation of Provisions.
Notwithstanding any termination of the Executive’s employment with the Company,
the Executive, in consideration of the Executive’s employment hereunder to the
Date of Termination, shall remain bound by the provisions of this Agreement
which specifically relate to periods, activities or obligations upon or
subsequent to the termination of the Executive’s employment, including, but not
limited to, the covenants contained in Sections 8, 9 and 10 hereof and the
Employee Invention Agreement, as defined in Section 8.

         
(f)       Surrender of Records
and Property.  Upon any termination of the Executive’s employment with
the Company, the Executive shall deliver promptly to the Company the SecurID
Net Access card, and all records, manuals, books, blank forms, documents,
letters, memoranda, notes, notebooks, reports, computer disks, computer
software, computer programs (including source code, object code, on-line files,
documentation, testing materials and plans and reports), designs, drawings,
formulae, data, tables or calculations or copies thereof, which are the
property of the Company or any Company Affiliate or which relate in any way to
the business, products, practices or techniques of the Company or any Company
Affiliate, and all other property, trade secrets and confidential information
of the Company or any Company Affiliate, including, but not limited to, all
tangible, written, graphical, machine readable and other materials (including
all copies) which in whole or in part contain any trade secrets or confidential
information of the Company or any Company Affiliate which in any of these cases
are in the Executive’s possession or under the Executive’s control.

         
5.       Compensation and
Payments upon Termination.

         
(a)      Without Cause; Good Reason. 
Subject to Section 6, if, during the Employment Period, the Company terminates
the Executive’s employment without Cause, or if the Executive terminates employment
for Good Reason, and in either case if the Executive signs (and then does not
rescind) a general release of claims in a form acceptable to the Company, then
the Executive shall be entitled to receive the following severance benefits:

         
(i)       payment of an amount
which is 200% of the sum of Executive’s then Annual Base Salary and Target
Incentive under the MIP plan for that current fiscal year, less all required
withholding and deductions, to be paid in one lump sum;

         
(ii)      payment of the Executive’s
Annual Base Salary earned through the Date of Termination, and any MIP
incentive earned for a prior fiscal year, but not yet paid, less all required
withholding and deductions, to be paid in one lump sum;

         
(iii)     payment of any as yet unpaid restricted cash
compensation payments as provided in Section 3(d), less all required
withholding and deductions, to be paid in one lump sum within ninety (90)
days  following the Date of Termination;

         
(iv)     if the Date of Termination occurs prior to or on the
three-year anniversary of the last day of the month in which falls the
Commencement Date, payment of an additional termination payment according to
the sliding scale schedule set forth below, less all withholdings and
deductions, to be paid in one lump sum within ninety (90) days following the
Date of Termination:

 

	
    
  	
  Termination Date
  
  

  
  	
    
  	
  Gross

  Termination

  Payment
  
  

  
  
	
    
  	
  After Commencement Date, but no later than 1-year
  anniversary of the end of the month in which falls Commencement Date 
  	
    
  	
  $8 million 
  
	
    
  	
  After 1-year anniversary, but no later than 2-year
  anniversary of the end of the month in which falls Commencement Date 
  	
    
  	
  $5 million 
  
	
    
  	
  After 2-year anniversary, but no later than 3-year
  anniversary of the end of the month in which falls Commencement Date 
  	
    
  	
  $2 million 
  
	
    
  	
  After the 3-year anniversary of the end of the month
  in which falls the Commencement Date 
  	
    
  	
  No payment 
  

 

; and

                   
(v)      other benefits and perquisites, if applicable,
to be paid or provided to the Executive in ac­cordance with applicable plans
and programs of the Company.

 

         
(b)      Death or Disability. 
If the Executive’s employment is terminated by rea­son of the Executive’s death
or Disability, the Company shall pay the Executive (or the Executive’s estate,
if applicable):

         
(i)       the Executive’s Annual Base Salary
earned through the Date of Termination, to the extent not yet paid, and any MIP
incentive compensation earned for a prior fiscal year but not yet paid, less
all required withholdings and deductions, to be paid in one lump sum;

         
(ii)      any as yet unpaid restricted cash
compensation payments provided in Section 3(d), less all required withholdings
and deductions, to be paid in one lump sum within ninety (90) days following
the Date of Termination;

         
(iii)     in the case of the Executive’s
death only, a pro rata share of the Executive’s MIP Target Incentive, in
accordance with the MIP plan for that current fiscal year, less all required
withholdings and deductions; and

         
(iv)     in the case of death, life insurance
benefits under the Company’s applicable life insurance policy, and in the case
of disability, disability benefits under the Company’s disability benefits
policy.  The Company agrees to undertake, as soon as practicable,
reasonable efforts to investigate and review the possibility of increasing the
maximum disability benefits available under its current policy; provided, the
Company shall have no obligation under this Agreement to actually increase
them.

         
(c)      Cause; Without Good Reason. 
If the Executive’s employment is terminated by the Company for Cause or the
Executive voluntarily terminates employment without Good Reason, the Company
shall pay to the Executive any Annual Base Salary earned through the Date of
Termination.  The Company shall have no further obligations under this
Agreement.

         
6.       Change In Control.
Following a “Change in Control” (as that term is defined in the Company’s
current Change in Control Plan), if the Executive is not elected Chairman and
Chief Executive Officer of any successor company resulting from the 
“Change in Control,” and if the Executive terminates his employment due to that
failure:

         
(a)      the Executive will be eligible to receive
payments and benefits under the Change in Control Plan then in effect;provided,
the Company shall provide the Executive with compensation and benefits that are
no less beneficial than those in the Change in Control Plan in effect on the
Commencement Date;

         
(b)      the Company will pay the
Executive any as yet unpaid restricted cash compensation payments provided in
Section 3(d), less all required withholdings and deductions, to be paid in one
lump sum within ninety (90) days following the Date of Termination; and

         
(c)      the Executive’s termination
would trigger the right to acceleration of unvested stock options subject to
and in accordance with the terms of any existing Stock Option Agreement between
the Executive and the Company.

         
The Executive also will be paid or provided other benefits and
perquisites, if applicable, in accordance with applicable plans and programs of
the Company.  If the Executive receives the payments and benefits
described in this Section 6, the Executive will not be eligible to receive any
other severance or termination payments or benefits, including but not limited
to those provided in Section 5 of this Agreement.

         
7.       Relocation. 
The Executive understands that he must relocate his primary residence to the
greater Twin Cities metropolitan area.  To assist the Executive in
obtaining his new residence, the Company will provide the Executive with the
assistance and programs described in the Company’s relocation program and any
other assistance the Company agrees to provide.  In addition, during the
period from the Commencement Date until the earlier of (i) October 31, 2001, or
(ii) until the Executive moves his personal belongings to his Minnesota
residence, the Company shall reimburse the Executive for the reasonable
temporary living expenses he incurs, including costs for lodging, meals and
incidental expenses, and to travel back to his New Jersey residence.

         
8.       Confidential
Information/Intellectual Property; Other Employment Policies.  As a
condition precedent to the Company hiring the Executive and the Company’s
performance of its obligations hereunder, the Executive shall execute and
deliver to the Company the Employee Invention, Copyright and Trade Secret
Agreement in the form attached hereto as Exhibit
A (the “Employee Invention Agreement”). The Executive shall also
comply with all of the applicable policies generally in effect for employees of
the Company or any applicable Company Affiliate for which the Executive
performs services, including without limitation, the Company’s Code of Business
Conduct and the Company’s Policy on Trading in ADC’s Securities, as the same
may be amended from time to time.

         
9.      
Non-Competition.

         
(a)     
Covenant.  In consideration of the financial and other
benefits described in this Agreement, the Executive agrees that, during the
period commencing on the Commencement Date and ending on the date that is 
one (1) year after the date on which the Executive ceases to be employed by the
Company (for whatever reason and whether such cessation is occasioned by the
Company or the Executive), the Executive shall not, directly or indirectly, and
in any manner or capacity (e.g., as an advisor, principal, agent,
partner, officer, director, investor, shareholder, employee, member of any
association or otherwise), engage in any business activities that are
competitive with the business conducted by the Company or any Company Affiliate
on or prior to the date the Executive ceases to be employed by ADC.

         
(b)      Geographical Extent of
Covenant.  The Executive acknowledges that the Company directly, or
indirectly through Company Affiliates, currently is engaged in business on a
world-wide basis.  Consequently, the Executive agrees that his obligations
under this Section 9 shall apply in any market, foreign or domestic, in which:
(a) the Company or, as applicable, a Company Affiliate(s), operates during the
one-year period described in Section 9(a); and (b) the Company or, as
applicable, a Company Affiliate(s), has plans to enter on the date the
Executive ceases to be employed by the Company.

         
(c)      Limitation on Covenant.  Ownership
by the Executive, as a passive investment, of less than one percent (1%) of the
outstanding shares of capital stock of any corporation listed on a national
securities exchange or publicly traded in the over-the-counter market shall not
constitute a breach of this Section 9.

         
10.     Non-Solicitation.  The
Executive agrees that for a period of two (2) years after termination of his
employment for any reason (and whether occasioned by the Company or the
Executive), the Executive shall not, except with the prior written consent of
the Company, (i) hire or attempt to hire for employment any person who is
employed by the Company or a Company Affiliate, or attempt to influence any
such person to terminate employment with the Company or any Company Affiliate;
(ii) induce or attempt to induce any employee of the Company or any Company
Affiliate to work for, render services to, provide advice to, or supply
confidential business information or trade secrets of the Company or any
Company Affiliate to any third person, firm or corporation; (iii) induce or
attempt to induce any customer, supplier, licensee, licensor or other business
relation of the Company or any Company Affiliate to cease doing business with
the Company or such Company Affiliate, or in any way interfere with the
relationship between any such customer, supplier, licensee, licensor or other
business relation and the Company or any Company Affiliate.  Nothing
herein shall prohibit the Executive from general advertising for personnel not
specifically targeting any employee or other personnel of the Company.

         
11.     Dispute Resolution Process.

         
(a)      Dispute Defined. 
The Company and the Executive desire to establish a reasonable and confidential
means of resolving any dispute, question or interpretation arising out of or
relating to (i) this Agreement or the alleged breach or threatened breach of
it, (ii) the making of this Agreement, including claims of fraud in the
inducement, (iii) the Executive’s employment by the Company pursuant to this
Agreement, including claims of wrongful termination or discrimination, or (iv)
any activities by the Executive following the cessation of his employment with
the Company (each such dispute to be referred to herein as a “Dispute”).

         
(b)      Procedure.  In
furtherance of the parties’ mutual desire, the Company and the Executive agree
that if either party believes a Dispute exists, that party shall provide the
other with written notice of the claimed Dispute.  Upon receipt of that
written notice, the following procedure shall be the exclusive means of fully
and finally resolving the Dispute.  First, within thirty (30) days of the
other party receiving that notice, the Executive and appropriate
representatives of the Company and/or Board will meet to attempt to resolve
amicably the Dispute.  Second, if a mutually agreeable resolution is not
reached within thirty (20) days following the parties’ first meeting, the
parties will engage in mediation with a neutral mediator, said mediation to be
held within forty-five (45) days of the final meeting between the Executive and
representatives of the Company and/or Board.  Third, if the Dispute is not
resolved through mediation within thirty (30) days, the Dispute shall be
resolved exclusively by final and binding arbitration held in accordance with
the provisions of this Agreement and the American Arbitration Association
(“AAA”) National Rules for the Resolution of Employment Disputes then in
effect, unless such rules are inconsistent with the provisions of this
Agreement.  In connection with such arbitration:

         
(i)       Any such arbitration shall be
conducted: (A) by a neutral arbitrator appointed by mutual agreement of the
parties; or (B) failing such agreement, by a neutral arbitrator appointed in
accordance with said AAA rules;

         
(ii)      The parties shall be permitted reasonable
discovery in accordance with the provisions of the Minnesota Rules of Civil
Procedure, including the production of relevant documents by the other party,
the exchange of witness lists, and a limited number of depositions, including
depositions of any expert who will testify at the arbitration;

         
(iii)     The summary judgment procedure
applicable under Rule 56 of the Minnesota Rules of Civil Procedure shall be
available and apply to any arbitration conducted pursuant to this Agreement;

         
(iv)     The arbitrator’s award shall include
findings of fact and conclusions of law showing the legal and factual bases for
the arbitrator’s decision;

         
(v)      The arbitrator shall have the
authority to award to the prevailing party any remedy or relief that a United
States District Court or court of the State of Minnesota could order or grant
if the dispute had first been brought in that judicial forum, including costs
and attorneys’ fees;

         
(vi)     The arbitrator’s award may be
entered by any court of competent jurisdiction; and

         
(vii)    Unless otherwise agreed by the parties, the place of
any arbitration proceeding shall be Minneapolis, Minnesota.

         
(c)      Confidentiality of Dispute
Resolution.  Except as the parties shall agree in writing, upon court
order, or as required by law, neither the Company nor the Executive will
disclose to any third party, except for their counsel, retained experts and
other persons directly serving counsel or retained experts, any fact or
information in any way pertaining to the process of resolving a Dispute under
this Section 11, or to the fact of or any term that is part of a resolution or
settlement of any Dispute.  This prohibition on disclosure specifically
includes, without limitation, any disclosure of an oral statement or of a
written document made or provided by either the Executive or the Company, or by
any of its or his representatives, counsel or retained experts, or other
persons directly serving any representatives, counsel or retained experts.

         
(d)      Right to Injunctive Relief. 
The Executive acknowledges and agrees that the services to be rendered by him
hereunder are of a special, unique and extraordinary character, that it would
be difficult to replace such services and that any violation of
Sections 4(f), 8, 9 or 10 hereof or of the Employee Invention Agreement
would be highly injurious to the Company and/or to any Company Affiliate and that
it would be extremely difficult to compensate the Company and/or any Company
Affiliate fully for damages for any such violation.  Accordingly,
notwithstanding the terms of this Section 11, the Company or any Company
Affiliate, as the case may be, shall be entitled to seek temporary and
permanent injunctive relief from a court of law, said relief to be obtained in
accordance with Section 13(a), to enforce the provisions of Sections 4(f),
8, 9 or 10 hereof, and the Employee Invention Agreement.  This provision
with respect to injunctive relief shall not, however, diminish the right of the
Company or any Company Affiliate to claim and recover damages, or to seek and
obtain any other relief available to it pursuant to the provisions of this
Section 11.

         
12.     Assignment; Successors.

         
(a)      This Agreement is personal to
the Executive and, without the prior written consent of the Company, shall not
be assignable by the Executive.  This Agreement shall inure to the benefit
of and be enforceable by the Executive’s heirs, executors and administrators.

         
(b)      This Agreement shall inure to
the benefit of and be binding upon the Company and its successors and assigns,
provided that the Company may not assign this Agree­ment except in connection
with the assignment or disposition of all or substantially all of the as­sets
or stock of the Company, or by law as a result of a merger or consolidation.

         
(c)      The Company shall require any
successor or assignee to assume and agree to perform this Agreement in the same
manner and to the same extent that the Company would have been required to
perform it if no such assignment had taken place.

         
13.     Miscellaneous.

         
(a)      This Agreement shall be
governed by, and construed in accordance with, the laws of the State of
Minnesota, without reference to its conflict of law rules. The parties agree,
subject to the provisions requiring arbitration, that any litigation in any way
relating to this Agreement or to the Executive’s employment by the Company,
shall be venued in the State of Minnesota, Hennepin County District Court, or
the United States District Court for the District of Minnesota. The Executive
and the Company hereby consent to the personal jurisdiction of these courts and
waive any objection that such venue is inconvenient or improper.

         
(b)      The captions of this Agreement
are not part of the provisions hereof and shall have no force or effect.

         
(c)      This Agreement may not be
amended or modified except by a written agreement executed by the par­ties
hereto or their respective successors.

         
(d)      All notices and other
communications under this Agreement shall be in writing and shall be given by
hand delivery to the other party, by registered or certified mail, return
receipt requested, postage prepaid, or by or by telefacsimile with printed
confirmation, addressed as follows:

	
    
  	
  If to the Executive:
  
	
    
  	
  Richard R. Roscitt 
  
	
    
  	
  Forty-Six Ridgeview Drive 
  
	
    
  	
  Basking Ridge, New Jersey 07920 
  
	
    
  	
    
  
	
    
  	
  If to the Company:
  
	
    
  	
  ADC Telecommunications Inc. 
  
	
    
  	
  P.O. Box 1101
  
	
    
  	
  Minneapolis, Minnesota 55440-1101 
  
	
    
  	
  Fax (952) 946-3209 
  
	
    
  	
  Attention: Chairman of Compensation and Organization
  Committee 
  

or to
such other address as either party furnishes to the other in writing in
accordance with this paragraph.  Notices and communications shall be
effective when actually received by the addressee or three (3) days after the
initiation of delivery; provided, that this period will not extend any period
of notice specifically set forth in this Agreement.

         
(e)      To the extent any provision of this Agreement
shall be determined to be invalid or unenforceable in any jurisdiction, such
provision shall be deemed to be deleted from this Agreement as to such
jurisdiction only, and the validity and enforceability of the remainder of such
provision and of this Agreement shall be unaffected.  In furtherance of
and not in limitation of the foregoing, the Executive expressly agrees that
should the duration of, geographical extent of, or business activities covered
by, any provision of this Agreement be in excess of that which is valid or
enforceable under applicable law in a given jurisdiction, then such provision,
as to such jurisdiction only, shall be construed to cover only that duration,
extent or activities that may validly or enforceably be covered.

         
(f)       Notwithstanding any other
provision of this Agreement, the Company shall withhold from any amount payable
under this Agreement all federal, state, local and foreign taxes that are
required to be withheld by applicable laws or regulations, or that are
consistent with the Company’s prevailing practice.

         
(g)      The Executive’s or the
Company’s failure to insist upon strict compliance with any provision of, or to
assert any right under, this Agreement shall not be deemed to be a waiver of
such provision or right or of any other provision of or right under this
Agreement.

         
(h)      This Agreement (including other
agreements specifically mentioned in this Agreement) contains the entire
agreement of the parties relating to the employment of the Executive by the
Company and the other matters discussed herein and supersedes all prior
promises, contracts, agreements and understandings of any kind, whether express
or implied, oral or written, with respect to such subject matter (including,
but not limited to, any promise, contract or understanding, whether express or
implied, oral or written, by and between the Company and the Executive), and
the parties hereto have made no agreements, representations or warranties
relating to the subject matter of this Agreement which are not set forth herein
or in the other agreements mentioned herein.

         
(i)       This Agreement may be
executed in several counterparts, each of which shall be deemed an original,
and said counterparts shall constitute but one and the same instrument.

         
(j)       The parties hereto shall execute and
deliver all documents, provide all information and take or forbear from all
such action as may be necessary or appropriate to achieve the purposes of the
Agreement.

         
(k)      The Company shall reimburse the Executive for
fees and expenses incurred in connection with the negotiation and preparation
of this Agreement, up to a maximum total reimbursement amount of $15,000.

 

         
IN WITNESS WHEREOF, the Executive has hereunto set the
Executive’s hand and, pursuant to the authorization of its Board of Directors,
the Company has caused this Agree­ment to be executed in its name on its
behalf, all as of the day and year first above written.

	
  ADC TELECOMMUNICATIONS, INC.

  	
    
  	
  RICHARD R. ROSCITT

  
	
    
  	
    
  	
    
  
	
  By /s/ Laura N. Owen
  
  

  
   
  	
    
  	
  /s/ Richard R. Roscitt
  
  

  

  
	
    
  	
    
  	
    
  
	
  Its Vice President, Human Resources
  
  

  

  	
    
  	
  Date January 28, 2001
  
  

  

  
	
    
  	
    
  	
    
  
	
  Date January 28, 2001

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