FairPoint Communications 2014 Annual Report Download - page 132

Certain Exceptions
11. Stock Options Exercises. For purposes of this Policy, the Company considers that the exercise of stock options under the
Company’s stock option plans (but not the sale of the underlying stock) to be exempt from this Policy. This Policy does apply,
however, to any sale of stock as part of a broker-assisted “cashless” exercise of an option, or any market sale for the purpose of
generating the cash needed to pay the exercise price of an option.
12. 401(k) Plan. This Policy does not apply to purchases of Company stock in the Company’s 401(k) plan resulting from
periodic contributions of money to the plan pursuant to payroll deduction elections. This Policy does apply, however, to certain
elections that may be made under the 401(k) plan, including (a) an election to increase or decrease the percentage of periodic
contributions that will be allocated to the Company stock fund, if any, (b) an election to make an intra-plan transfer of an existing
account balance into or out of the Company stock fund, (c) an election to borrow money against a 401(k) plan account if the loan will
result in a liquidation of some or all of a participant’s Company stock fund balance and (d) an election to pre-pay a plan loan if the pre-
payment will result in allocation of loan proceeds to the Company stock fund.
13. Employee Stock Purchase Plan. This Policy does not apply to purchases of Company stock in the Company’s employee
stock purchase plan, if any, resulting from periodic contributions of money to the plan pursuant to the elections made at the time of
enrollment in the plan. This Policy also does not apply to purchases of Company stock resulting from lump sum contributions to the
plan, provided that the participant elected to participate by lump-sum payment at the beginning of the applicable enrollment period.
This Policy does apply to a participant’s election to participate in or increase his or her participation in the plan, and to a participant’s
sales of Company stock purchased pursuant to the plan.
14. Dividend Reinvestment Plan. This Policy does not apply to purchases of Company stock under the Company’s dividend
reinvestment plan, if any, resulting from reinvestment of dividends paid on Company securities. This Policy does apply, however, to
voluntary purchases of Company stock that result from additional contributions a participant chooses to make to the plan, and to a
participant’s election to participate in the plan or increase his level of participation in the plan. This Policy also applies to his sale of any
Company stock purchased pursuant to the plan.
Applicability of Policy to Inside Information
Regarding Other Companies
This Policy and the guidelines described herein also apply to Material Nonpublic Information relating to other companies,
including the Company’s customers, vendors or suppliers (“business partners”), when that information is obtained in the course of
employment with, or other services performed on behalf of, the Company. Civil and criminal penalties, and termination of
employment, may result from trading on inside information regarding the Company’s business partners. All employees should treat
Material Nonpublic Information about
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