Document:

Administrative Services Agreement

 Exhibit 10.6 
 Execution Copy 
 ADMINISTRATIVE SERVICES AGREEMENT 
 by and among 
 ALLIANCE RESOURCE
PARTNERS, L.P. 
 ALLIANCE RESOURCE MANAGEMENT GP, LLC 
 ALLIANCE RESOURCE OPERATING PARTNERS, L.P. 
 ALLIANCE HOLDINGS GP, L.P.

 ALLIANCE GP, LLC 
 and 
 ALLIANCE RESOURCE HOLDINGS II, INC. 

 TABLE OF CONTENTS 
  

					
	ARTICLE 1: DEFINITIONS
			
	1.1	  	Definitions	  	1
	1.2	  	Construction	  	1
	
	ARTICLE 2: SERVICES
			
	2.1	  	Services	  	1
	2.2	  	Provision of Insurance	  	2
	2.3	  	Payment for Services	  	2
	2.4	  	Invoices	  	2
	2.5	  	Annual Reallocation	  	3
	2.6	  	Disputes	  	3
	2.7	  	Representations Regarding Use of Services	  	3
	2.8	  	Warranties; Limitation of Liability	  	4
	2.9	  	Force Majeure	  	4
	2.10	  	Affiliates	  	4
	
	ARTICLE 3: OTHER AGREEMENTS
			
	3.1	  	Adoption of Policies and Procedures	  	4
	
	ARTICLE 4: MISCELLANEOUS
			
	4.1	  	Choice of Law; Submission to Jurisdiction	  	4
	4.2	  	Termination	  	4
	4.3	  	Notices	  	5
	4.4	  	Entire Agreement; Supersedure	  	5
	4.5	  	Effect of Waiver of Consent	  	5
	4.6	  	Amendment or Modification	  	5
	4.7	  	Assignment	  	5
	4.8	  	Counterparts	  	5
	4.9	  	Severability	  	5
	4.10	  	Further Assurances	  	5
	4.11	  	Withholding or Granting of Consent	  	6
	4.12	  	U.S. Currency	  	6
	4.13	  	Laws and Regulations	  	6
	4.14	  	Negation of Rights of Third Parties	  	6

  

					
	Exhibit A	 	Defined Terms	  	
	Exhibit B	 	Conflicts Policies and Procedures	  	
	Annex A	 	Personnel Allocation	  	

  

 i 

 ADMINISTRATIVE SERVICES AGREEMENT 
 THIS ADMINISTRATIVE SERVICES AGREEMENT (this “Agreement”) is entered into this 15th day of May, 2006 (the “Effective
Date”) by and among Alliance Resource Partners, L.P., a Delaware limited partnership (“ARLP”), Alliance Resource Management GP, LLC, a Delaware limited liability company and the managing general partner of ARLP
(“MGP”), Alliance Resource Operating Partners, L.P., a Delaware limited partnership (“OLP”), Alliance Holdings GP, L.P., a Delaware limited partnership (“AHGP”), Alliance GP, LLC, a Delaware limited
liability company and the general partner of AHGP (“AGP”), and Alliance Resource Holdings II, Inc. (“ARH II”). 
 RECITALS 
 The Parties hereto desire, by their execution of this Agreement, to evidence the terms and conditions upon which
AGP will provide certain services to the ARLP Entities, the AHGP Entities and the ARH II Entities. 
 AGREEMENTS 
 NOW, THEREFORE, in consideration of the premises and the covenants, conditions, and agreements contained herein, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto hereby agree as follows: 
 ARTICLE 1:
DEFINITIONS 
 1.1 Definitions. The definitions listed on Exhibit A shall be for all purposes, unless otherwise clearly
indicated to the contrary, applied to the terms used in this Agreement. 
 1.2 Construction. Unless the context requires otherwise:
(a) any pronoun used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns, pronouns and verbs shall include the plural and vice versa; (b) references to Articles and Sections
refer to Articles and Sections of this Agreement; (c) the terms “include”, “includes”, “including” or words of like import shall be deemed to be followed by the words “without limitation”; and
(d) the terms “hereof”, “herein” or “hereunder” refer to this Agreement as a whole and not to any particular provision of this Agreement. The table of contents and headings contained in this Agreement are for
reference purposes only, and shall not affect in any way the meaning or interpretation of this Agreement. 
 ARTICLE 2: SERVICES

 2.1 Services. Beginning on the Effective Date, subject to the terms of this Article 2 and in exchange for the payment described
in Section 2.3, AGP hereby agrees to provide each of the ARLP Entities, the AHGP Entities and the ARH II Entities with such general administrative and management services, including but not limited to human resources, information technology,
financial and accounting services, legal services and other services (the “Services”) as may be necessary to manage the business of the ARLP Entities, the AHGP Entities and the ARH II Entities, as applicable, in accordance with the
Services Standard; it being understood and agreed by the Parties that in connection with the provision of such Services, AGP shall employ or 

  

 1 

 
otherwise retain such personnel as may be necessary to provide the Services. The names of such personnel are set forth on Annex A hereto and will be
updated on or about December 1 of each year in accordance with the procedures set forth in Section 2.5. 
 2.2 Provision of
Insurance. ARLP hereby agrees to cause each of the ARLP Entities, the AHGP Entities and the ARH II Entities to be named as additional insureds in ARLP’s insurance program, as in effect from time to time. Each of the ARLP Entities, the AHGP
Entities and the ARH II Entities, as applicable, shall be allocated, and pay for, such insurance coverage in an amount equal to ARLP’s cost of insuring the assets and operations of such partnership entities. 
 2.3 Payment for Services. (a) As remuneration for the provision by AGP to each of the ARLP Entities, the AHGP Entities and the ARH II
Entities of the Services, AGP shall be entitled to receive, and the ARLP Entities, the AHGP Entities and the ARH II Entities, as applicable, agree to pay to AGP, an amount equal to the percentage of each employee’s compensation allocable to
each of the ARLP Entities, the AHGP Entities and the ARH II Entities as the same are set forth on Annex A hereto. In addition, each of the ARLP Entities, the AHGP Entities and the ARH II Entities shall pay all sales, use, excise, value added
or similar taxes, if any, that may be applicable from time to time in respect of the Services provided to such entities by AGP. The aggregate amount payable by the ARLP Entities, the AHGP Entities or the ARH II Entities to AGP pursuant to this
Section 2.3(a) with respect to a given period of time shall be referred to herein as the “Administrative Services Fee.” It is the intention of the Parties that the Administrative Services Fee represents fair and reasonable
compensation to AGP for the ARLP Entities’, the AHGP Entities’ or the ARH II Entities’, as applicable, allocable share of the base salaries, employer costs for employee benefits, bonuses paid and provided to such personnel by AGP, or
any of its Affiliates. The amount of the Administrative Services Fee shall not be adjusted except in accordance with Section 2.5, notwithstanding any change in personnel or the Services provided to any of the ARLP Entities, the AHGP Entities or
the ARH II Entities, respectively. 
 (b) In addition, the AHGP Entities and ARH II Entities shall pay AGP an aggregate annual
amount of $75,000 ($18,750 per quarter) for certain shared fixed costs including, but not limited to, office lease, telephone and office equipment leases (the “Fixed Charges Fee”). It is the intention of the Parties that the Fixed
Charges Fee represents fair and reasonable remuneration to AGP for the AHGP Entities’ and the ARH II Entities’ use of the facilities and equipment of AGP and its Affiliates. The AHGP Entities and the ARH II Entities shall each pay to AGP
their respective pro rata portion of the Fixed Charges Fee based on the relative allocation of employee compensation as set forth on Annex A hereto to the AHGP Entities, on one hand and the ARH II Entities on the other hand. The amount of the
Fixed Charges Fee shall not be adjusted except in accordance with Section 2.5. 
 2.4 Invoices. AGP shall invoice the applicable
Billing Agent on or before ten days following the end of each fiscal quarter for the Administrative Services Fee and the Fixed Charges Fee for such quarter. All invoices shall be due and payable on the 45th day following the end of each fiscal
quarter. 
  

 2 

 2.5 Annual Reallocation. On or about December 1 of each year, AGP shall submit for approval a
revised Annex A (the “Proposed Annex A”) and a new estimate of the Fixed Charges Fee (the “Proposed Fixed Charges Fee”) to the board of directors of each of MGP, AGP and ARH II. The Proposed Annex A will
reflect any changes in personnel of AGP who are performing the Services, changes in each such employee’s compensation and AGP’s good faith estimate of the time each such employee will spend performing Services on behalf of each of the ARLP
Entities, the AHGP Entities and the ARH II Entities, respectively, taking into account prior performance and future expectations. The Proposed Fixed Charges Fee shall reflect AGP’s good faith estimate of the amount of fixed costs allocable to
the AHGP Entities and the ARH II Entities. Once approved by the board of directors of each of MGP, AGP and ARH II, or pursuant to the provisions of Section 2.6, the Proposed Annex A and the Proposed Fixed Charges Fee shall become part of this
Agreement and replace the existing Annex A and the Fixed Charges Fee until such time as a new Proposed Annex A and the Proposed Fixed Charges Fee is approved in accordance with the provisions of this Section 2.5 or Section 2.6. 

In addition, AGP shall prepare a schedule detailing the variance between the estimated allocation of time spent by its personnel on behalf of each of
the ARLP Entities, the AHGP Entities and the ARH II Entities in the past fiscal year (the “Adjusted Administrative Services Fee”) and submit such schedule for approval to the board of directors of each of MGP, AGP and ARH II. Upon
approval by the board of directors of each of MGP, AGP and ARH II, or pursuant to the provisions of Section 2.6, the difference between the Administrative Services Fee paid and the Adjusted Administrative Services Fee shall be paid by or
reimbursed to each Entity within 60 days of the fiscal year end. 
 2.6 Disputes. Should there be a dispute over the nature or quality
of the Services, the calculation and allocation of the Administrative Services Fee in connection with a Proposed Annex A the allocation of fixed charge in connection with the Fixed Charges Fee or the Adjusted Administrative Services Fee, AGP and the
applicable Entities shall first attempt to resolve such dispute, acting diligently and in good faith, using the past practices of such Parties and documentary evidence of costs as guidelines for such resolution. If AGP and the applicable Entities
are unable to resolve any such dispute within thirty days, or such additional time as may be reasonable under the circumstances, the dispute shall be referred to the applicable Conflicts Committees (or in the case of ARH II, to its board of
directors) for resolution. The Parties agree that the applicable Conflicts Committees and the board of directors of ARH II shall have the authority to settle any such dispute, in their sole discretion, recognizing that it is the intent of all
Parties that all shared expenses, services and the fixed costs, as applicable, be allocated among AGP and its Affiliates, and the ARLP Entities, the AHGP Entities or the ARH II Entities, as applicable, on a fair and reasonable basis. If, following
good faith negotiation, the applicable Conflicts Committee and/or the board of directors of ARH II cannot resolve any dispute, AGP shall have the right, but not the obligation, to withhold the provision of any Services until such time as the
Entities resolve the dispute. 
 2.7 Representations Regarding Use of Services. Each of the ARLP Entities, the AHGP Entities and the
ARH II Entities represent and agree that it will use the Services only in accordance with all applicable federal, state and local laws and regulations, and in accordance with the reasonable conditions, rules, regulations, and specifications that may
be set forth in any manuals, materials, documents, or instructions furnished from time to time by AGP to such 

  

 3 

 
entities. AGP reserves the right to take all actions, including, without limitation, termination of any portion of the Services, that it reasonably believes
is required to assure compliance with applicable laws and regulations. 
 2.8 Warranties; Limitation of Liability. The Services shall
be provided in accordance with the Services Standard. EXCEPT AS SET FORTH IN THE PRECEDING SENTENCE, AGP MAKES NO (AND HEREBY DISCLAIMS AND NEGATES ANY AND ALL) WARRANTIES OR REPRESENTATIONS WHATSOEVER, EXPRESS OR IMPLIED, WITH RESPECT TO THE
SERVICES. IN NO EVENT SHALL AGP OR ANY OF ITS AFFILIATES BE LIABLE TO ANY OF THE PERSONS RECEIVING ANY SERVICES OR TO ANY OTHER PERSON FOR ANY EXEMPLARY, PUNITIVE, INDIRECT, INCIDENTAL, CONSEQUENTIAL, OR SPECIAL DAMAGES RESULTING FROM ANY ERROR IN
THE PERFORMANCE OF SUCH SERVICE, REGARDLESS OF WHETHER THE PERSON PROVIDING SUCH SERVICE, ITS AFFILIATES, OR OTHERS MAY BE WHOLLY, CONCURRENTLY, PARTIALLY, OR SOLELY NEGLIGENT OR OTHERWISE AT FAULT, EXCEPT TO THE EXTENT SUCH EXEMPLARY, PUNITIVE,
INDIRECT, INCIDENTAL, CONSEQUENTIAL OR SPECIAL DAMAGES ARE PAID BY THE PARTY INCURRING SUCH DAMAGES TO A THIRD PARTY. 
 2.9 Force
Majeure. AGP shall have no obligation to perform the Services if its failure to do so is caused by or results from any act of God, governmental action, natural disaster, strike, failure of essential equipment, or any other cause or circumstance,
whether similar or dissimilar to the foregoing causes or circumstances, beyond the reasonable control of AGP. 
 2.10 Affiliates. At
its election, AGP may cause one or more of its Affiliates or third party contractors reasonably acceptable to the Party receiving any Services to provide such Services; provided, however, AGP shall remain responsible for the provision of such
Services in accordance with this Agreement. 
 ARTICLE 3: OTHER AGREEMENTS 
 3.1 Adoption of Policies and Procedures. The Boards of Directors of MGP, AGP and ARH II have adopted the policies and procedures attached hereto
as Exhibit B to govern their relationship with respect to this Agreement. 
 ARTICLE 4: MISCELLANEOUS 
 4.1 Choice of Law; Submission to Jurisdiction. This Agreement shall be subject to and governed by the laws of the State of Delaware. 

4.2 Termination. Any party hereto may terminate this Agreement by providing written notice to the other Parties of its intention to terminate
this Agreement, which notice must be provided at least 90 days prior to such termination. AGP may terminate this Agreement by providing 30 days’ prior written notice to any of the ARLP Entities, the AHGP Entities and the ARH II Entities at any
time during which a Payment Default has occurred and is continuing for a period of more than 30 days. 
  

 4 

 4.3 Notices. All notices or requests or consents provided for or permitted to be given pursuant to
this Agreement must be in writing and must be given by depositing same in the United States mail, addressed to the Party to be notified, postpaid, and registered or certified with return receipt requested or by delivering such notice in person, by
facsimile or electronic mail to such Party. Notice given by personal delivery or mail shall be effective upon actual receipt. Notice given by facsimile or by electronic mail shall be effective upon actual receipt if received during the
recipient’s normal business hours, or at the beginning of the recipient’s next business day after receipt if not received during the recipient’s normal business hours. All notices to be sent to a Party pursuant to this Agreement shall
be sent to or made at the address set forth below such Party’s signature to this Agreement, or at such other address as such Party may stipulate to the other Parties in the manner provided in this Section 4.3. 
 4.4 Entire Agreement; Supersedure. This Agreement constitutes the entire agreement of the Parties relating to the matters contained herein,
superseding all prior contracts or agreements, whether oral or written, relating to the matters contained herein. 
 4.5 Effect of Waiver
of Consent. No Party’s express or implied waiver of, or consent to, any breach or default by any Party in the performance by such Party of its obligations hereunder shall be deemed or construed to be a consent or waiver to or of any other
breach or default in the performance by such Party of the same or any other obligations of such Party hereunder. Failure on the part of a Party to complain of any act of any Party or to declare any Party in default, irrespective of how long such
failure continues, shall not constitute a waiver by such Party of its rights hereunder until the applicable statute of limitations period has run. 
 4.6 Amendment or Modification. This Agreement may be amended or modified from time to time only by the agreement of all the Parties affected by any such amendment; provided, however, that ARLP and AHGP may not, without the
prior approval of its respective Conflicts Committee, agree to any amendment or modification of this Agreement that, in the reasonable discretion of the MGP or AGP, as applicable, will materially and adversely affect the holders of units of ARLP or
AHGP, as applicable. 
 4.7 Assignment. No Party shall have the right to assign its rights or obligations under this Agreement without
the consent of the other Parties. 
 4.8 Counterparts. This Agreement may be executed in any number of counterparts with the same
effect as if all Parties had signed the same document. All counterparts shall be construed together and shall constitute one and the same instrument. 
 4.9 Severability. If any provision of this Agreement or the application thereof to any Party or circumstance shall be held invalid or unenforceable to any extent, the remainder of this Agreement and the
application of such provision to other Parties or circumstances shall not be affected thereby and shall be enforced to the greatest extent permitted by law. 
 4.10 Further Assurances. In connection with this Agreement and all transactions contemplated by this Agreement, each Party hereto agrees to execute and deliver such additional documents and instruments and to
perform such additional acts as may be necessary or 

  

 5 

 
appropriate to effectuate, carry out and perform all of the terms, provisions and conditions of this Agreement and all such transactions. 
 4.11 Withholding or Granting of Consent. Unless the consent or approval of a Party is expressly required not to be unreasonably withheld (or words
to similar effect), each Party may, with respect to any consent or approval that it is entitled to grant pursuant to this Agreement, grant or withhold such consent or approval in its sole and uncontrolled discretion, with or without cause, and
subject to such conditions as it shall deem appropriate. 
 4.12 U.S. Currency. All sums and amounts payable or to be payable pursuant
to the provisions of this Agreement shall be payable in coin or currency of the United States of America that, at the time of payment, is legal tender for the payment of public and private debts in the United States of America. 
 4.13 Laws and Regulations. Notwithstanding any provision of this Agreement to the contrary, no Party hereto shall be required to take any act, or
fail to take any act, under this Agreement if the effect thereof would be to cause such Party to be in violation of any applicable law, statute, rule or regulation. 
 4.14 Negation of Rights of Third Parties. The provisions of this Agreement are enforceable solely by the Parties, and no Limited Partner or other Person shall have the right to enforce any provision of this
Agreement or to compel any Party to comply with the terms of this Agreement. 
  

 6 

 IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed by their respective
authorized officers as of May 15, 2006. 
  

			
	ALLIANCE RESOURCE PARTNERS, L.P.
	
	 ALLIANCE RESOURCE MANAGEMENT GP, LLC

	 Individually and as Managing General Partner of Alliance Resource Partners, L.P.

		
	By:	 	/s/ Thomas L. Pearson
	Name:	 	Thomas L. Pearson
	Title:	 	Senior Vice President – Law and Administration
	
	Address for Notice:
	 1717 South Boulder Avenue
 Tulsa, Oklahoma
74119
 Facsimile No.: (918) 295-1415

 Signature Page to Administrative Services Agreement 

			
	 ALLIANCE RESOURCE OPERATING PARTNERS L.P.

	
	 ALLIANCE RESOURCE MANAGEMENT GP, LLC

	 Individually and as Managing General Partner of Alliance Resource Partners, L.P.

		
	By:	 	/s/ Thomas L. Pearson
	Name:	 	Thomas L. Pearson
	Title:	 	Senior Vice President – Law and Administration
	
	Address for Notice:
	 1717 South Boulder Avenue
 Tulsa, Oklahoma
74119
 Facsimile No.: (918) 295-1415

  

			
	ALLIANCE HOLDINGS GP, L.P.
	
	ALLIANCE GP, LLC
	 Individually and as General Partner of Alliance Holdings GP, L.P.

		
	By:	 	/s/ Thomas L. Pearson
	Name:	 	Thomas L. Pearson
	Title:	 	Senior Vice President – Law and Administration
	
	Address for Notice:
	 1717 South Boulder Avenue
 Tulsa, Oklahoma
74119
 Facsimile No.: (918) 295-1415

 Signature Page to Administrative Services Agreement 

			
	ALLIANCE RESOURCE HOLDINGS II, INC.
		
	By:	 	/s/ Thomas L. Pearson
	Name:	 	Thomas L. Pearson
	Title:	 	Senior Vice President – Law and Administration
	
	Address for Notice:
	 1717 South Boulder Avenue
 Tulsa, Oklahoma
74119
 Facsimile No.: (918) 295-1415

 Signature Page to Administrative Services Agreement 

 Exhibit A 
 DEFINED TERMS 
 “Adjusted Administrative Services Fee” shall have the meaning set
forth in Section 2.5. 
 “Administrative Services Fee” shall have the meaning set forth in Section 2.3(a).

 “Affiliate” shall mean, with respect to any Person, any other Person that directly or indirectly through one or more
intermediaries controls, is controlled by or is under common control with, the Person in question. As used herein, the term “control” means the possession, direct or indirect, of the power to direct or cause the direction of the management
and policies of a Person, whether through ownership of voting securities, by contract or otherwise. Notwithstanding the foregoing, a Person shall only be considered an “Affiliate” of the general partner of ARLP or AHGP, as applicable, if
such Person owns, directly or indirectly, 50% or more of the voting securities of such general partner or otherwise possesses the sole power to direct or cause the direction of the management and policies of such general partner; provided
however, that for purposes of this Agreement none of the ARLP Entities, or the ARH II Entities, as applicable, shall be deemed to be Affiliates of AGP. 
 “Agreement” shall mean this Administrative Services Agreement, as it may be amended, modified, or supplemented from time to time. 
 “Billing Agent” shall mean ARH II, and in the case of ARLP, MGP, and in the case of AHGP, AGP. 
 “AHGP” shall have the meaning set forth in the introductory paragraph of this Agreement. 
 “AHGP Entities” shall mean AHGP and AGP and any Affiliate controlled (and only so long as such Affiliates are controlled) by AHGP or AGP
(as the term “control” is used in the definition of “Affiliate”) but excluding the ARLP Entities. 
 “AGP” shall have the meaning set forth in the introductory paragraph of this Agreement. 
 “ARH
II” shall have the meaning set forth in the introductory paragraph of this Agreement. 
 “ARH II Entities” shall
mean ARH II and any Affiliate controlled (and only so long as such Affiliates are controlled) by ARH II (as the term “control” is used in the definition of “Affiliate”) but excluding the ARLP Entities and the AHGP Entities.

 “ARLP” shall have the meaning set forth in the introductory paragraph of this Agreement. 
 “ARLP Entities” shall mean ARLP, MGP, OLP, Alliance Resource GP, LLC and any Affiliate controlled (and only so long as such Affiliates
are controlled) by ARLP, MGP, OLP, Alliance Resource GP, LLC (as the term “control” is used in the definition of “Affiliate”). 
  

 A-1 

 “Conflicts Committee” when used in reference to ARLP or an ARLP Entity, shall have the
meaning set forth in the partnership agreement of ARLP and when used in reference to AHGP or an AHGP Entity, shall have the meaning set forth in the partnership agreement of AHGP. 
 “Effective Date” shall have the meaning set forth in the introductory paragraph of this Agreement. 
 “Entities” shall mean the ARLP Entities, the AHGP Entities and the ARH II Entities. 
 “Fixed Charges Fee” shall have the meaning set forth in Section 2.3(b). 
 “MGP” shall have the meaning set forth in the introductory paragraph of this Agreement. 
 “OLP” shall have the meaning set forth in the introductory paragraph of this Agreement. 
 “Party” shall mean any one of the Persons that executes this Agreement. 
 “Payment Default” shall mean the failure of an Entity to pay the invoices described in Section 2.4 on or before the 45th day
following the end of each fiscal quarter 
 “Person” means an individual or a corporation, limited liability company,
partnership, joint venture, trust, unincorporated organization, association, government agency or political subdivision thereof or other entity. 
 “Proposed Annex A” shall have the meaning set forth in Section 2.5. 
 “Proposed Fixed Charges
Fee” shall have the meaning set forth in Section 2.5. 
 “Services” shall have the meaning set forth in
Section 2.1. 
 “Services Standard” shall mean, with respect to the performance of the Services, the good faith
undertaking, on a commercially reasonable basis, to perform the Services in all material respects in compliance with applicable laws and prudent industry practices. 
  

 A-2 

 Exhibit B 
 CONFLICTS POLICIES AND PROCEDURES 
 Capitalized terms used but not defined in this
Exhibit B shall have the meanings assigned to such terms in that certain Administrative Services Agreement, effective May 15, 2006, of which this Exhibit B forms a part. 
 This Exhibit B outlines the corporate governance structure and the policies and procedures that have been adopted by the boards of directors
of AGP, MGP and ARH II to address potential conflicts among, protect the confidential information of, and govern the sharing of AGP personnel among, the Entities. 
 Shared Services 
 AGP employees may be assigned to perform Shared Services for all or any of the ARLP Entities, the AHGP
Entities and the ARH II Entities. AGP employees performing Shared Services may be appointed to officer positions (including executive officer positions) at each of MGP, AGP and ARH II or their respective controlled Affiliates. As a result of their
performance of Shared Services, Shared Employees may obtain Commercial Information that relates to more than one of the groups of Entities. To the extent that any Shared Employee has Commercial Information that relates to any two or more of the ARLP
Entities, the AHGP Entities and the ARH II Entities, such Shared Employee shall not engage in any activities to which such Commercial Information relates unless such activities are approved by the Screening Officer of each respective Entity.

 Information Screening for Shared Employees 
 To the fullest extent possible, Shared Employees should avoid access to Commercial Information for any Entities for which they do not perform Commercial and Development Activities. To the extent that any Shared Employee who engages in
Commercial and Development Activities becomes privy to Commercial Information of any Entities for which such employee does not perform Commercial and Development Activities, such Shared Employee must report that fact and the nature of the
Confidential Information to the Screening Officers who will maintain a record of the name of the person, the date of the report, and the nature of the Commercial Information obtained by the Shared Employee. 
 Except as expressly permitted by the Screening Officers and to the extent required to effectively perform the Shared Services, (i) Shared Employees
shall not disclose Commercial Information of the ARLP Entities to any director, officer or employee associated with the AHGP Entities or ARH II Entities; (ii) Shared Employees shall not disclose Commercial Information of the AHGP Entities to
any director, officer or employee associated with the ARLP Entities or ARH II Entities and (iii) Shared Employees shall not disclose Commercial Information of the ARH II Entities to any director, officer or employee associated with the ARLP
Entities or AHGP Entities. 
 Shared Employees should seek guidance on the foregoing restrictions from the Screening Officers to the extent
that they are uncertain as to an appropriate course of action. 
  

 B-1 

 Definitions 
 For purposes of these policies and procedures, capitalized terms used but not defined above shall have the following meanings: 
 “Commercial and Development Activities” shall mean operations of the Entities relating to sales, marketing, or other services provided to customers; operation of or proposed changes to, such Entities’ assets; and the
plans and strategies dealing with the business of such Entities. 
 “Commercial Information” shall mean information about
Commercial and Development Activities or other competitively sensitive information of any Entities. Commercial Information includes information regarding prices, costs, margins, volumes and contractual terms for any particular customer; any method,
tool or computer program used to determine prices for any asset; all plans or strategies used or adopted to negotiate, target or identify a particular customer for any asset; all information regarding plans and prospective budgets to expand or build
a new facility; all information regarding a proposal to buy an existing facility; and capacity and capacity utilization of any facility. 
 “Independent Director” shall mean an individual director who meets the independence, qualification and experience requirements established by the Securities Exchange Act of 1934, as amended, and the rules and regulations of
the Securities and Exchange Commission thereunder and by the Nasdaq National Market. 
 “Screening Officer” shall mean the
chief legal officer or general counsel for each of ARH II, AGP and MGP. 
 “Shared Employees” shall mean MGP employees
providing Shared Services. 
 “Shared Services” shall mean services provided by AGP employees to more than one of the groups
of Entities comprising the ARLP Entities, the AHGP Entities and the ARH II Entities and such services shall include, but not be limited to, human resources, information technology, financial and accounting services, legal services and such other
services that do not involve Commercial and Development Activities. 
  

 B-2 

 ANNEX A 
 PERSONNEL ALLOCATION 
  

									
	 Employee Name
	  	 Total
Compensation
	  	Percentage of Total Compensation
Allocable to
	  	  	ARLP	  	AHGP	  	ARH II2002 Employee Stock Purchase Plan

 Exhibit 10.1 
 ZHONE TECHNOLOGIES, INC. 
 2002 EMPLOYEE STOCK PURCHASE PLAN 
 (Amended and Restated May 17, 2006) 
 1. Establishment of Plan. Zhone Technologies, Inc., a Delaware Corporation (the “Company”), proposes to grant options for purchase of shares of the Company’s Common Stock (“Shares”) to eligible
employees of the Company and its Participating Subsidiaries (as hereinafter defined) pursuant to this Employee Stock Purchase Plan (this “Plan”). For purposes of this Plan, “Parent Corporation” and
“Subsidiary” shall have the same meanings as “parent corporation” and “subsidiary corporation” in Sections 424(e) and 424(f), respectively, of the Internal Revenue Code of 1986, as amended (the
“Code”). “Participating Subsidiaries” are Parent Corporations or Subsidiaries that the Board of Directors of the Company (the “Board”) designates from time to time as corporations that shall
participate in this Plan. The Company intends this Plan to qualify as an “employee stock purchase plan” under Section 423 of the Code (including any amendments to or replacements of such Section), and this Plan shall be so construed.
Any term not expressly defined in this Plan but defined for purposes of Section 423 of the Code shall have the same definition herein. A total of 3,500,000 Shares (as adjusted to reflect the one-for-four reverse stock split effective
November 13, 2003) is reserved for issuance under this Plan. 
 2. Purpose. The purpose of this Plan is to provide eligible
employees of the Company and Participating Subsidiaries with a convenient means of acquiring an equity interest in the Company through payroll deductions, to enhance such employees’ sense of participation in the affairs of the Company and
Participating Subsidiaries, and to provide an incentive for continued employment. 
 3. Certain terms. 
 (a) “Change in Capitalization” shall mean any increase or reduction in the number of Shares, or any change (including,
without limitation, in the case of a spin-off, dividend or other distribution in respect of Shares, a change in value) in the Shares or exchange of Shares for a different number or kind of shares or other securities of the Company or another
corporation, by reason of a reclassification, recapitalization, merger, consolidation, reorganization, spin-off, split-up, issuance of warrants or rights or debentures, stock dividend, stock split or reverse stock split, cash dividend, property
dividend, combination or exchange of shares, repurchase of shares, change in corporate structure or a substantially similar transaction. 
 (b) “Change in Control” shall mean the occurrence of any of the following: 
 (1) An acquisition (other than directly from the Company) of any Voting Securities of the Company by any “person,” as such term is used for purposes of Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as
amended, including, without limitation, any individual, firm, corporation, partnership, limited liability company, joint venture, association, trust, or any group thereof (a “Person”), immediately after which such Person has
ownership, within the meaning of Rule 13d-3 of the Securities Exchange Act of 1934, as amended (“Beneficial Ownership”), of fifty percent (50%) or more of the then outstanding Shares or the combined voting power of the then
outstanding voting securities of the Company entitled to vote generally in the election of the Board (“Voting Securities”), provided, however, in determining whether a Change in Control has occurred pursuant to this Section
(b)(1), Shares or Voting Securities which are acquired in a “Non-Control Acquisition” (as hereinafter defined) shall not constitute an acquisition which would cause a Change in Control. A “Non-Control Acquisition”
shall mean an acquisition by (i) an employee benefit plan (or a trust forming a part thereof) maintained by (A) the Company or (B) any corporation or other Person of which a majority of its voting power or its voting equity securities
or equity interest is owned, directly or indirectly, by the Company (for purposes of this definition, a “Related Entity”), (ii) the Company or any Related Entity, or (iii) any Person in connection with a “Non-Control
Transaction” (as hereinafter defined); 
 (2) The individuals who, as of the date hereof, are members of the Board (the
“Incumbent Board”), cease for any reason to constitute at least a majority of the members of the Board, or 

  

 1 

 
following a Merger (as defined in paragraph (c)(i) below) which results in a Parent corporation, the board of directors of the ultimate Parent Corporation
(as defined in paragraph (3)(i)(A) below); provided, however, that if the election, or nomination for election by the Company’s common stockholders, of any new director was approved by a vote of at least two-thirds of the Incumbent
Board, such new director shall, for purposes of this Plan, be considered as a member of the Incumbent Board; provided further, however, that no individual shall be considered a member of the Incumbent Board if such individual initially
assumed office as a result of an actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board (a “Proxy Contest”) including by reason of any agreement intended to avoid or settle a Proxy
Contest; or 
 (3) The consummation of: 
 (i) A merger, consolidation or reorganization with or into the Company or in which securities of the Company are issued (a
“Merger”), unless such Merger is a “Non-Control Transaction.” A “Non-Control Transaction” shall mean a Merger where: 
 (A) the stockholders of the Company, immediately before such Merger own directly or indirectly immediately following such Merger at least
fifty percent (50%) of the combined voting power of the outstanding voting securities of (x) the corporation resulting from such Merger (the “Surviving Corporation”) if fifty percent (50%) or more of the combined
voting power of the then outstanding voting securities of the Surviving Corporation is not Beneficially Owned, directly or indirectly by another Person (a “Parent Corporation”), or (y) if there are one or more Parent
Corporations, the ultimate Parent Corporation; and 
 (B) the individuals who were members of the Incumbent Board immediately
prior to the execution of the agreement providing for such Merger constitute at least a majority of the members of the board of directors of (x) the Surviving Corporation, if there is no Parent Corporation, or (y) if there are one or more
Parent Corporations, the ultimate Parent Corporation; and 
 (C) no Person other than (w) the Company, (x) any
Related Entity, (y) any employee benefit plan (or any trust forming a part thereof) that, immediately prior to such Merger was maintained by the Company or any Related Entity, or (z) any Person who, together with its Affiliates,
immediately prior to such Merger, had Beneficial Ownership of fifty percent (50%) or more of the then outstanding Voting Securities or Shares, owns, together with its Affiliates, Beneficial Ownership of fifty percent (50%) or more of the
combined voting power of the outstanding voting securities or common stock of (I) the Surviving Corporation if there is no Parent Corporation, or (II) if there are one or more Parent Corporations, the ultimate Parent Corporation. 
 (ii) A complete liquidation or dissolution of the Company; or 
 (iii) The sale or other disposition of all or substantially all of the assets of the Company to any Person (other than a transfer to a
Related Entity or under conditions that would constitute a Non-Control Transaction with the disposition of the assets being regarded as a Merger for this purpose or the distribution to the Company’s stockholders of the stock of a Related Entity
or any other assets). 
 Notwithstanding the foregoing, a Change in Control shall not be deemed to occur solely because any Person (the “Subject
Person”) acquired Beneficial Ownership of more than the permitted amount of the then outstanding Shares or Voting Securities as a result of the acquisition of Shares or Voting Securities by the Company which, by reducing the number of
Shares or Voting Securities then outstanding, increases the proportional number of shares Beneficially Owned by the Subject Persons, provided that if a Change in Control would occur (but for the operation of this sentence) as a result of the
acquisition of Shares or Voting Securities by the Company, and (1) before such share acquisition by the Company the Subject Person becomes the Beneficial Owner of any new or additional Shares or Voting Securities in contemplation of such share
acquisition by the Company or (2) after 

  

 2 

 
such share acquisition by the Company the Subject Person becomes the Beneficial Owner of any new or additional Shares or Voting Securities which in either
case increases the percentage of the then outstanding Shares or Voting Securities Beneficially Owned by the Subject Person, then a Change in Control shall occur. 
 (c) “Fair Market Value” on any date means the closing price at the close of the primary trading session of the Shares on
such date on the principal national securities exchange on which such Shares are listed or admitted to trading, or, if such Shares are not so listed or admitted to trading, the closing price at the close of the primary trading session on such date
as quoted on the Nasdaq Stock Market or such other market in which such prices are regularly quoted, or, if there has been no such closing price with respect to Shares on such date, the Fair Market Value shall be the value established by the
Compensation Committee of the Board in good faith. 
 4. Administration. This Plan shall be administered by the Compensation
Committee of the Board (the “Committee”). Subject to the provisions of this Plan and the limitations of Section 423 of the Code or any successor provision in the Code, all questions of interpretation or application of this Plan
shall be determined by the Committee and its decisions shall be final and binding upon all participants. Members of the Committee shall receive no compensation for their services in connection with the administration of this Plan, other than
standard fees as established from time to time by the Board for services rendered by Board members serving on Board committees. All expenses incurred in connection with the administration of this Plan shall be paid by the Company. 
 5. Eligibility. Any employee of the Company or the Participating Subsidiaries is eligible to participate in an Offering Period (as
hereinafter defined) under this Plan except the following: 
 (a) employees who are not employed by the Company or a
Participating Subsidiary (10) days before the beginning of such Offering Period; 
 (b) employees who are customarily
employed for twenty (20) hours or less per week; 
 (c) employees who are customarily employed for five (5) months
or less in a calendar year; 
 (d) employees who, together with any other person whose stock would be attributed to such
employee pursuant to Section 424(d) of the Code, own stock or hold options to purchase stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company or any of its Subsidiaries
or affiliates or who, as a result of being granted an option under this Plan with respect to such Offering Period, would own stock or hold options to purchase stock possessing five percent (5%) or more of the total combined voting power or
value of all classes of stock of the Company or any of its Participating Subsidiaries; and 
 (e) individuals who provide
services to the Company or any of its Participating Subsidiaries as independent contractors who are reclassified as common law employees for any reason except for federal income and employment tax purposes. 
 6. Offering Dates. The offering periods of this Plan (each, an “Offering Period”), with the exception of the First Offering
Period (the “First Offering Period”), shall be of twenty-four (24) months duration commencing on March 1 and September 1 of each year and ending on February 28 and August 31 of each year. Each Offering
Period, other than the First Offering Period, shall consist of four (4) six-month purchase periods (individually, a “Purchase Period”) during which payroll deductions of the participants are accumulated under this Plan. The
First Offering Period shall be of twenty-seven (27) months duration commencing on June 1, 2002 and ending on August 31, 2004, and shall consist of one (1) nine-month Purchase Period and three (3) six-month Purchase Periods.
An additional Offering Period shall commence on January 1, 2004 and end on August 31, 2005, and shall consist of one (1) Purchase Period commencing on January 1, 2004 and ending on February 29, 2004 and three
(3) six-month Purchase Periods thereafter. The first business day of each Offering Period is referred to as the “Offering Date.” The last business day of each Purchase Period is referred to as the “Purchase
Date.” The Committee shall have the power to change the duration of Offering Periods with respect to offerings without 

  

 3 

 
stockholder approval if such change is announced at least fifteen (15) days prior to the scheduled beginning of the first Offering Period to be
affected; provided, however, that no Offering Period may be longer than twenty-seven (27) months. Effective September 1, 2005, the following provisions shall apply. Each Offering Period shall be three (3) months duration
commencing on September 1, December 1, March 1 and June 1 of each year and ending on November 30, February 28 (or 29 in the case of a leap year), May 31 and August 31 of each year. The last
business day of each Offering Period (commencing on or after September 1, 2005) shall be referred to as the “Purchase Date.” 
 7. Participation in this Plan. Eligible employees may become participants in an Offering Period under this Plan on the first Offering Date after satisfying the eligibility requirements by delivering a subscription agreement to
the Company’s stock administration department (the “Stock Administration Department”) not later than one (1) day before such Offering Date. An eligible employee who does not deliver a subscription agreement to the Stock
Administration Department by such date after becoming eligible to participate in such Offering Period shall not participate in that Offering Period or any subsequent Offering Period unless such employee enrolls in this Plan by filing a subscription
agreement with the Stock Administration Department not later than one (1) day preceding a subsequent Offering Date. Once an employee becomes a participant in an Offering Period, such employee will automatically participate in the Offering
Period commencing immediately following the last day of the prior Offering Period unless the employee withdraws or is deemed to withdraw from this Plan or, with respect to Offering Periods commencing prior to September 1, 2005, terminates
further participation in the Offering Period as set forth in Section 12 below. Such participant is not required to file any additional subscription agreement in order to continue participation in this Plan. 
 8. Grant of Option on Enrollment. Enrollment by an eligible employee in this Plan with respect to an Offering Period will constitute the
grant (as of the Offering Date) by the Company to such employee of an option to purchase on the Purchase Date up to that number of Shares of the Company determined by dividing (a) the amount accumulated in such employee’s payroll deduction
account during such Purchase Period by (b) the lower of (i) eighty-five percent (85%) of the Fair Market Value of a Share on the Offering Date (but in no event less than the par value of a Share), or (ii) eighty-five percent
(85%) of the Fair Market Value of a Share on the Purchase Date (but in no event less than the par value of a Share), provided, however, that the number of Shares subject to any option granted pursuant to this Plan shall not exceed the
maximum number of Shares set by the Committee pursuant to Section 11(b) below with respect to the applicable Purchase Date. Effective for Offering Periods commencing on or after September 1, 2005, enrollment by an eligible employee in this
Plan will constitute the grant (as of the Offering Date) by the Company to such employee of an option to purchase on the Purchase Date up to that number of Shares of the Company determined by dividing the (a) amount accumulated in such
employee’s payroll deduction account during such Offering Period by (b) the lower of (i) eighty-five percent (85%) of the Fair Market of a Share on the Offering Date (but in no event less than par value of a Share), or
(ii) eighty-five percent (85%) of the Fair Market of a Share on the Purchase Date (but in no event less than par value of a Share), provided, however, that the number of Shares subject to any option granted pursuant to this Plan
shall not exceed the maximum number of Shares set by the Committee pursuant to Section 11(b) below with respect to the applicable Purchase Date. 
 9. Purchase Price. The purchase price at which a Share will be sold in any Offering Period shall be eighty-five percent (85%) of the lesser of: 
 (a) The Fair Market Value on the Offering Date; or 
 (b) The Fair Market Value on the Purchase Date. 
 10. Payment Of Purchase Price; Changes In Payroll Deductions; Issuance Of Shares. 
 (a) The purchase price of the Shares is accumulated by regular payroll deductions made during each Offering Period. The deductions are made as a percentage of the participant’s compensation in one percent (1%) increments not less
than two percent (2%), nor greater than ten percent (10%) or such lower limit set 

  

 4 

 
by the Committee. Compensation shall mean all W-2 cash compensation, including, but not limited to, base salary, wages, commissions, overtime, shift premiums
and bonuses, plus draws against commissions, provided, however, that for purposes of determining a participant’s compensation, any election by such participant to reduce his or her regular cash remuneration under Sections 125 or 401(k)
of the Code shall be treated as if the participant did not make such election. Payroll deductions shall commence on the first payday of the Offering Period and shall continue to the end of the Offering Period unless sooner altered or terminated as
provided in this Plan. 
 (b) A participant may increase or decrease the rate of payroll deductions during an Offering Period
by filing with the Stock Administration Department a new authorization for payroll deductions, in which case the new rate shall become effective for the next payroll period commencing more than fifteen (15) days after the Stock Administration
Department’s receipt of the authorization and shall continue for the remainder of the Offering Period unless changed as described herein. Such change in the rate of payroll deductions may be made at any time during an Offering Period, but not
more than one (1) change may be made effective during any Purchase Period. Effective for any Offering Period commencing on or after September 1, 2005, a participant may not increase or decrease the rate of payroll deductions during an
Offering Period. A participant may, however, increase or decrease the rate of payroll deductions for any subsequent Offering Period by filing with the Stock Administration Department a new authorization for payroll deductions not later than one
(1) day before the beginning of such subsequent Offering Period. 
 (c) A participant may reduce his or her payroll
deduction percentage to zero during an Offering Period by filing with the Stock Administration Department a request for cessation of payroll deductions. Such reduction shall be effective beginning with the next payroll period commencing more than
fifteen (15) days after the Stock Administration Department’s receipt of the request and no further payroll deductions will be made for the duration of the Offering Period. Payroll deductions credited to the participant’s account
prior to the effective date of the request shall be used to purchase Shares in accordance with Section (e) below. A participant may not resume making payroll deductions during the Offering Period in which he or she reduced his or her payroll
deductions to zero. Effective for any Offering Period commencing on or after September 1, 2005, a participant may not reduce his or her payroll deduction percentage to zero during an Offering Period. 
 (d) All payroll deductions made for a participant are credited to his or her account under this Plan and are deposited with the general
funds of the Company. No interest accrues on the payroll deductions. All payroll deductions received or held by the Company may be used by the Company for any corporate purpose, and the Company shall not be obligated to segregate such payroll
deductions. 
 (e) On each Purchase Date, so long as this Plan remains in effect, and (with respect to Offering Periods
commencing prior to September 1, 2005) provided that the participant has not submitted a signed and completed withdrawal form before that date which notifies the Company that the participant wishes to withdraw from that Offering Period under
this Plan and have all payroll deductions accumulated in the account maintained on behalf of the participant as of that date returned to the participant, the Company shall apply the funds then in the participant’s account to the purchase of
whole Shares reserved under the option granted to such participant with respect to the Offering Period to the extent that such option is exercisable on the Purchase Date. The purchase price per Share shall be as specified in Section 9 of this
Plan. Any cash remaining in a participant’s account after such purchase of Shares shall be refunded to such participant in cash, without interest; provided, however that any amount remaining in such participant’s account on a Purchase Date
which is less than the amount necessary to purchase a full Share shall be carried forward, without interest, into the next Purchase Period or Offering Period, as the case may be. In the event that this Plan has been oversubscribed, all funds not
used to purchase Shares on the Purchase Date shall be returned to the participant, without interest. No Shares shall be purchased on a Purchase Date on behalf of any employee whose participation in this Plan has terminated prior to such Purchase
Date. 
 (f) As promptly as practicable after the Purchase Date, the Company shall issue Shares for the participant’s
benefit representing the Shares purchased upon exercise of his or her option. 
  

 5 

 (g) During a participant’s lifetime, his or her option to purchase Shares hereunder
is exercisable only by him or her. The participant will have no interest or voting right in Shares covered by his or her option until such option has been exercised. 
 11. Limitations on Shares to be Purchased. 
 (a) No participant shall be entitled to
purchase stock under this Plan at a rate which, when aggregated with his or her rights to purchase stock under all other employee stock purchase plans of the Company or any Subsidiary, exceeds $25,000 in fair market value, determined as of the
Offering Date (or such other limit as may be imposed by the Code) for each calendar year in which the employee participates in this Plan. The Company shall automatically suspend the payroll deductions of any participant as necessary to enforce such
limit provided that when the Company automatically resumes such payroll deductions, the Company must apply the rate of payroll deduction in effect immediately prior to such suspension. 
 (b) No participant shall be entitled to purchase more than the Maximum Share Amount (as defined below) on any single Purchase Date. Not
less than ten (10) days prior to the commencement of any Purchase Period, the Committee shall determine, in its sole discretion, the maximum number of Shares which may be purchased by any employee at any single Purchase Date (hereinafter the
“Maximum Share Amount”). Effective for Offering Periods commencing on or after September 1, 2005, the Maximum Share Amount shall be set not less then ten (10) days prior to the commencement of any Offering Period. If a new
Maximum Share Amount is set, then all participants must be notified of such Maximum Share Amount prior to the commencement of the next Offering Period or Purchase Period. The Maximum Share Amount shall continue to apply with respect to all
succeeding Purchase Dates and Offering Periods unless revised by the Committee as set forth above. 
 (c) If the number of
Shares to be purchased on a Purchase Date by all employees participating in this Plan exceeds the number of Shares then available for issuance under this Plan, then the Company will make a pro rata allocation of the remaining Shares in as uniform a
manner as shall be reasonably practicable and as the Committee shall determine to be equitable. In such event, the Company shall give written notice of such reduction of the number of Shares to be purchased under a participant’s option to each
participant affected. 
 (d) Any payroll deductions accumulated in a participant’s account which are not used to purchase
stock due to the limitations in this Section 11 shall be returned to the participant as soon as practicable after the end of the applicable Offering Period or Purchase Period, without interest. 
 12. Withdrawal. 
 (a)
Each participant may withdraw from an Offering Period under this Plan by signing and delivering to the Stock Administration Department a written notice to that effect on a form provided for such purpose. Such withdrawal may be elected at any time at
least fifteen (15) days prior to the end of an Offering Period. Upon withdrawal from this Plan, the accumulated payroll deductions shall be returned to the withdrawn participant, without interest, and his or her interest in this Plan shall
terminate. In the event a participant voluntarily elects to withdraw from this Plan, he or she may not resume his or her participation in this Plan during the same Offering Period, but he or she may participate in any Offering Period under this Plan
which commences on a date subsequent to such withdrawal by filing a new authorization for payroll deductions in the same manner as set forth in Section 7 above for initial participation in this Plan. This Section 12(a) shall only apply to
Offering Periods commencing prior to September 1, 2005. 
 (b) Effective for any Offering Period commencing on or after
September 1, 2005, a participant may not withdraw from a current Offering Period under this Plan. However, a participant may, by signing and delivering to the Stock Administration Department a written withdrawal notice one (1) day in
advance of a subsequent Offering Period, decline to participate in such subsequent Offering Period. After the Stock Administration Department’s timely receipt of such request no further payroll deductions will be made with 

  

 6 

 
respect to such participant during subsequent Offering Periods until such time as the participant affirmatively elects to participate in the Plan by filing a
new authorization for payroll deductions in the same manner as set forth in Section 7 above for initial participation in the Plan. 
 (c) If the Fair Market Value on the first day of the current Offering Period in which a participant is enrolled is higher than the Fair Market Value on the first day of any subsequent Offering Period, the Company will
automatically enroll such participant in the subsequent Offering Period. Any funds accumulated in a participant’s account prior to the first day of such subsequent Offering Period will be applied to the purchase of Shares on the Purchase Date
immediately prior to the first day of such subsequent Offering Period, if any. 
 13. Termination of Employment. Termination of a
participant’s employment for any reason, including retirement, death or the failure of a participant to remain an eligible employee of the Company or of a Participating Subsidiary, immediately terminates his or her participation in this Plan.
In such event, the payroll deductions credited to the participant’s account will be returned to him or her or, in the case of his or her death, to his or her legal representative, without interest. For purposes of this Section 13, an
employee will not be deemed to have terminated employment or failed to remain in the continuous employ of the Company or of a Participating Subsidiary in the case of sick leave, military leave, or any other leave of absence approved by the Board;
provided that such leave is for a period of not more than ninety (90) days or reemployment upon the expiration of such leave is guaranteed by contract or statute. 
 14. Return of Payroll Deductions. In the event a participant’s interest in this Plan is terminated by withdrawal, termination of
employment or otherwise, or in the event this Plan is terminated by the Board, the Company shall deliver to the participant all payroll deductions credited to such participant’s account. No interest shall accrue on the payroll deductions of a
participant in this Plan. 
 15. Change in Capitalization and Change in Control. 
 (a) Subject to any required action by the stockholders of the Company, in the event of a Change in Capitalization, the number of Shares
covered by each option under this Plan which has not yet been exercised and the number of Shares which have been authorized for issuance under this Plan but have not yet been placed under option (collectively, the “Reserves”), as
well as the price per Share covered by each option under this Plan which has not yet been exercised, shall be proportionately adjusted for any increase or decrease in the number of issued and outstanding Shares resulting from a stock split or the
payment of a stock dividend (but only on the Common Stock) or any other increase or decrease in the number of issued and outstanding Shares effected without receipt of any consideration by the Company; provided, however, that conversion of
any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.” Such adjustment shall be made by the Committee, whose determination shall be final, binding and conclusive. Except as
expressly provided herein, no issue by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of
Shares subject to an option. 
 (b) In the event of a Change in Control due to the dissolution or liquidation of the Company,
all rights to purchase Shares under the Plan shall terminate and all amounts credited to employee accounts which have not been applied to the purchase of Shares shall be refunded; provided, however, that the Committee may, in the exercise of
its sole discretion in such instances, declare that this Plan shall terminate as of a date fixed by the Committee and give each participant the right to purchase Shares under this Plan prior to such termination. In the event of a Change in Control
for any other reason and after which the Company is not the Surviving Corporation, the Committee may determine in its sole discretion that: (1) a date established by the Board on or up to 10 days before the date of consummation of such Change
in Control shall be treated as the last day of any Offering Periods then in progress and shall also be a Purchase Date, and there shall be no further Offering Periods under this Plan; (2) all rights to purchase Shares under the Plan shall
terminate and 

  

 7 

 
all amounts credited to employee accounts which have not been applied to the purchase of Shares shall be refunded; or (3) the Plan will continue with
regard to Offering Periods that commenced prior to the closing of the proposed transaction and shares of the Surviving Corporation will be purchased based on the Fair Market Value of the Surviving Corporation’s stock on each Purchase Date.

 (c) The Committee may, if it so determines in the exercise of its sole discretion, in the event of a Change in
Capitalization or a Change in Control, also make provision for adjusting the Reserves, as well as the price per Share covered by each outstanding option. 
 16. Nonassignability. Neither payroll deductions credited to a participant’s account nor any rights with regard to the exercise of an option or to receive Shares under this Plan may be assigned,
transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and distribution or as provided in Section 23 below) by the participant. Any such attempt at assignment, transfer, pledge or other disposition
shall be void and without effect. 
 17. Reports. Individual accounts will be maintained for each participant in this Plan. Each
participant shall receive promptly after the end of each Purchase Period a report of his or her account setting forth the total payroll deductions accumulated, the number of Shares purchased, the per share price thereof and the remaining cash
balance, if any, carried forward to the next Purchase Period or Offering Period, as the case may be. 
 18. Notice of
Disposition. Each participant shall notify the Company in writing if the participant disposes of any of the Shares purchased in any Offering Period pursuant to this Plan if such disposition occurs within two (2) years from the Offering
Date or within one (1) year from the Purchase Date on which such Shares were purchased (the “Notice Period”). The Company may, at any time during the Notice Period, place a legend or legends on any certificate representing
Shares acquired pursuant to this Plan requesting the Company’s transfer agent to notify the Company of any transfer of the Shares. The obligation of the participant to provide such notice shall continue notwithstanding the placement of any such
legend on the certificates. 
 19. No Rights to Continued Employment. Neither this Plan nor the grant of any option hereunder
shall confer any right on any employee to remain in the employ of the Company or any Participating Subsidiary, or restrict the right of the Company or any Participating Subsidiary to terminate such employee’s employment. 
 20. Equal Rights And Privileges. All eligible employees shall have equal rights and privileges with respect to this Plan so that this Plan
qualifies as an “employee stock purchase plan” within the meaning of Section 423 or any successor provision of the Code and the related regulations. Any provision of this Plan which is inconsistent with Section 423 or any
successor provision of the Code shall, without further act or amendment by the Company, the Committee or the Board, be reformed to comply with the requirements of Section 423. This Section 20 shall take precedence over all other provisions
in this Plan. 
 21. Notices. All notices or other communications by a participant to the Company under or in connection with
this Plan shall be deemed to have been duly given when received in the form specified by the Company at the location, or by the person, designated by the Company for the receipt thereof. 
 22. Term; Stockholder Approval. After this Plan is adopted by the Board, this Plan will become effective on the First Offering Date (as
defined above). This Plan shall be approved by the stockholders of the Company, in any manner permitted by applicable corporate law, within twelve (12) months before or after the date this Plan is adopted by the Board. No purchase of Shares
pursuant to this Plan shall occur prior to such stockholder approval. This Plan shall continue until the earlier to occur of (a) termination of this Plan by the Board (which termination may be effected by the Board at any time),
(b) issuance of all of the Shares reserved for issuance under this Plan, or (c) ten (10) years from the adoption of this Plan by the Board. 
  

 8 

 23. Designation of Beneficiary. 
 (a) A participant may file a written designation of a beneficiary who is to receive any Shares and cash, if any, from the
participant’s account under this Plan in the event of such participant’s death subsequent to the end of a Purchase Period but prior to delivery to him of such Shares and cash. In addition, a participant may file a written designation of a
beneficiary who is to receive any cash from the participant’s account under this Plan in the event of such participant’s death prior to a Purchase Date. 
 (b) Such designation of beneficiary may be changed by the participant at any time by written notice. In the event of the death of a
participant and in the absence of a beneficiary validly designated under this Plan who is living at the time of such participant’s death, the Company shall deliver such Shares or cash to the executor or administrator of the estate of the
participant, or if no such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may deliver such Shares or cash to the spouse or to any one or more dependents or relatives of the
participant, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate. 
 24. Conditions Upon Issuance of Shares; Limitation on Sale of Shares. Shares shall not be issued with respect to an option unless the exercise of such option and the issuance and delivery of such Shares pursuant thereto shall
comply with all applicable provisions of law, domestic or foreign, including, without limitation, the Securities Act, the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, and the requirements of any
stock exchange or automated quotation system upon which the Shares may then be listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance. 
 25. Applicable Law. The Plan shall be governed by the substantive laws (excluding the conflict of laws rules) of the State of Delaware.

 26. Amendment or Termination of this Plan. The Board may at any time amend, terminate or extend the term of this Plan, except
that, any such termination cannot affect options previously granted under this Plan, nor may any amendment make any change in an option previously granted which would adversely affect the right of any participant; provided however that no
action taken under Section 15 shall be considered to adversely affect the right of any participant within the meaning of this sentence, nor may any amendment be made without approval of the stockholders of the Company obtained in accordance
with Section 22 above within twelve (12) months of the adoption of such amendment (or earlier if required by Section 22) if such amendment would: 
 (a) increase the number of Shares that may be issued under this Plan; or 
 (b) change the designation of the employees (or class of employees) eligible for participation in this Plan. 
 Notwithstanding the foregoing, the Board may make such amendments to the Plan as the Board determines to be advisable, if the continuation of the Plan or any Offering
Period would result in financial accounting treatment for the Plan that is different from the financial accounting treatment in effect on the date this Plan is adopted by the Board. 
  

 9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00104-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00104-of-00352.parquet"}]]