Document:

Exhibit 10.4

 

Atlantic Tele-Network, Inc.

Form of

Notice of Grant of Incentive
Stock Option

and Option Agreement

 

	
  Administrator

  	
   

  	
  Participant
  Name:  

  
	
  10
  Derby Square

  	
   

  	
  ID:

  
	
  Salem,
  MA 01970 

  	
   

  	
   

  
	
  (978)
  619-1300

  	
   

  	
   

  

 

Atlantic
Tele-Network, Inc., a Delaware corporation (the “Company”), hereby grants
to the Participant named above (“you”) an incentive stock option (the “Option”)
to purchase the number of shares of Common Stock, par value $0.01 per share
(the “Stock”) of the Company set forth below on the terms of this Notice of
Grant of Incentive Stock Option and Option Agreement (this “Agreement”),
subject to your acceptance of this Agreement and the provisions of the Atlantic
Tele-Network, Inc. 2008 Equity Incentive Plan, as amended from time to
time (the “Plan”). The Option is intended to qualify as an incentive stock
option under Section 422 of the Internal Revenue Code of 1986, as amended.

 

Date of grant:

 

Number of shares:

 

Exercise Price per share:

 

Vesting:  The Option will vest and become exercisable
on the following schedule:

 

	
  on or after
                          ,
  20    , as to
              
  shares, 

  
	
  on or after
                          ,
  20    , as to
              
  additional shares, 

  
	
  on or after
                          ,
  20    , as to
              
  additional shares, and 

  
	
  on or after
                          ,
  20    , as to
              
  additional shares. 

  

 

Expiration:   The Option will expire on, and may not be
exercised for any shares after
                          ,
20    (the “Expiration Date”).

 

By
your signature below, you agree with the Company to the terms of this
Agreement.

 

	
  Atlantic
  Tele-Network, Inc.  

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
   

  	
   

  	
   

  
	
  Name: 

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Participant

  	
   

  	
  Date

  
					

 

1

 

Terms of Stock Options

 

1.     Plan Incorporated by Reference. The provisions of the
Plan are incorporated into and made a part of this Agreement by this reference.
Capitalized terms used and not otherwise defined in this Agreement have the
meanings given to them in the Plan. The Committee administers the Plan, and its
determinations regarding the interpretation and operation of the Plan and this
Agreement are final and binding. The Board may in its sole discretion at any
time terminate or from time to time modify and amend the Plan as provided
therein. You may obtain a copy of the Plan without charge upon request to the
Company’s Corporate Secretary.

 

2.     Number of Shares; Exercise Price. The number of shares of
Stock subject to the Option and the Exercise Price to be paid for each share
upon exercise of the Option, both of which are subject to adjustment as
provided in the Plan, are stated on the first page of this Agreement.

 

3.     Exercisability of Option. The Option will vest and may be
exercised from time to time, while you are employed by the Company or one of
its Affiliates, for the respective numbers of shares and at the times stated in
the vesting schedule on the first page of this Agreement, subject to the
other terms hereof. You shall not earn any rights under the Option except in
conformity with such schedule and until all other conditions that are required
to be met in order to exercise the Option have been satisfied.

 

4.     Termination of Employment; Non-Competition and
Non-Solicitation; Forfeiture.

 

4.1   Upon termination of your employment with the Company and its
Affiliates for any reason, any portion of the Option that is unvested as of the
termination date will be canceled for no value. If your termination is:

 

·                for
any reason other than death or disability, any portion of the Option that is
then vested may be exercised only during the 90 calendar days following the
termination date;

 

·                due
to your death or disability (as determined by the Committee), any portion of
the Option that is then vested may be exercised only during the one calendar
year following the termination date;

 

In any event, the Option will expire without value
on, and may not be exercised as to any shares after, the Expiration Date.
Authorized leave of absence or absence on military or government service shall
not constitute termination of your employment for this purpose so long as
either (a) such absence is for a period of no more than 90 calendar days
or (b) your right to re-employment after such absence is guaranteed either
by statute or by contract.

 

4.2    While employed or engaged by the Company or one of its Affiliates
and for a period of one year after the termination or cessation of such
employment or engagement for any reason, you will not, without the Company’s
prior written consent, directly or indirectly: (i) engage in any business
or enterprise (whether as owner, partner, officer, director, employee,
consultant, investor, lender or otherwise, except as the holder of not more
than 1% of the outstanding stock of a publicly-held company) that is
competitive with the Company’s or the Affiliate’s business, including but not
limited to any business or enterprise that develops, manufactures, markets,
licenses, sells or provides any product or service that competes with any
product or service developed, manufactured, marketed, licensed, sold or
provided, or planned to be developed, manufactured, marketed, licensed, sold or
provided, by the Company while you are employed or engaged by the Company or
the Affiliate, in the geographic area in which the Company or the Affiliate
operates; (ii) either alone or in association with others, sell or attempt
to sell to any person or entity that was, or to whom the Company had made or
received a proposal to become, a customer or client of the Company at any time
during the term of my employment or engagement with the Company, any products
or services that are competitive with any products or services developed,
manufactured, marketed, sold or provided by the Company; or (iii) either
alone or in association with others, recruit, solicit or hire in any capacity
any employee of the Company, or induce or attempt to induce any employee of the
Company to discontinue his or her employment relationship with the Company.

 

4.3   Notwithstanding any other provision of this Agreement, (i) the
Option, whether or not vested in whole or in part, shall be canceled and
forfeited and (ii) you shall be obligated to (a) transfer to the
Company any shares previously issued upon exercise of the Option and (b) pay
to the Company all gains realized by any person from the

 

2

 

disposition of any such
shares if: (I) your employment with the Company or any Affiliate is
terminated for cause or (II) following termination of employment for any
reason, either (A) the Company determines that you engaged in conduct
while an employee that would have justified termination for cause or (B) you
violate any of the provisions set forth in Section 4.2 of this agreement
or any confidentiality or non-competition agreement with the Company or any
Affiliate. Termination for cause means criminal conduct involving a felony in
the U.S. or the equivalent of a felony under the laws of other countries,
material violations of civil law related to your job responsibilities, fraud,
dishonesty, self-dealing, breach of your obligations regarding the Company’s
intellectual property, or willful misconduct that the Committee determines to
be injurious to the Company.

 

4.4   In addition to the remedies provided herein, the Company shall be
entitled to equitable relief, including specific performance and injunctive
relief, to ensure the your compliance with the provisions set forth in Section 4.2
of this Agreement or any confidentiality or non-competition agreement with the
Company or any Affiliate.

 

It is your
responsibility to exercise the Option, if at all, before the Expiration Date or
any earlier date that the Option is terminated. The Company is not responsible
for notifying you before your right to exercise ceases and will not make any
adjustment if the Option terminates unexercised.

 

5.     Method of Exercise. The Option may only be exercised for
the purchase of whole shares. To exercise the Option, you or your legal
representative must deliver to the Company, in the manner prescribed by the
Company, notice of exercise specifying the number of vested shares with respect
to which the Option is being exercised, accompanied by payment of the aggregate
Exercise Price for such shares (i) in cash or by certified check, (ii) in
the form of a payment commitment of a financial or brokerage institution
acceptable to the Committee, (iii) if and as then permitted by the
Committee, in shares of Stock (including without limitation shares withheld
from those issuable under the Option) valued at their Fair Market Value on the
date of delivery (which may, in the Committee’s discretion, be by attestation)
or withholding, or (iv) in such other form as the Committee may approve.
Promptly following such notice and payment (but subject to Sections 6 and 7
hereof), the Company will deliver to you (or such legal representative) the
number of shares for which the Option is being exercised.

 

6.     Withholding Taxes. You are responsible for any income or
other tax liability attributable to the Option. It is a condition to the
issuance of shares upon exercise of the Option that you shall pay to the
Company, or make provision satisfactory to the Committee for payment of, any
taxes required by law to be withheld with respect to the exercise of the Option
no later than the date of the event creating the tax liability. The Company and
its Affiliates may, to the extent permitted by law, deduct any such tax obligations
from any payment of any kind for your benefit. In the Committee’s discretion,
the minimum tax obligations required by law to be withheld with respect to the
exercise of the Option may be paid in whole or in part in shares of Stock,
including shares withheld from the exercise of the Option, valued at their Fair
Market Value on the date of withholding or delivery.

 

7.     Compliance with Law; Lock-Up Agreement. The Company shall
not be obligated to issue or deliver any shares of Common Stock upon exercise
of the Option if it determines that the delivery or issuance would violate the
terms of the Company’s policy regarding insider trading (including as a result
of your need to engage in a sale of those shares in order to pay applicable
withholding taxes). The Company shall not be obligated to issue any shares of
Stock or other securities upon exercise of the Option unless the Company is
satisfied that all requirements of law or any applicable stock exchange in
connection therewith (including without limitation the effective registration
or exemption of the issuance of such shares or other securities under the
Securities Act of 1933, as amended, and applicable state securities laws) have
been or will be complied with, and the Committee may impose any restrictions on
your rights as it shall deem necessary or advisable to comply with any such
requirements. You further agree hereby that, as a condition to the purchase of
shares upon exercise of the Option, you will enter into and perform any
underwriter’s lock-up agreement requested by the Company from time to time in
connection with public offerings of the Company’s securities.

 

8.     Rights as Stockholder. You shall have no rights as a
stockholder with respect to any shares of Stock or other securities covered by
the Option until the issuance of such shares or other securities. No adjustment
shall be made for dividends or other rights for which the record date occurs
before the date of any such issuance.

 

3

 

9.     Effect on Your
Employment. Neither the adoption, maintenance, or operation of the Plan nor
the award of the Option confers upon you any right to continue your employment
with the Company or any Affiliate, nor shall they interfere with the rights of
the Company or any Affiliate to terminate or otherwise change the terms of such
employment or service at any time, including, without limitation, the right to
promote, demote or reassign you from one position to another in the Company or
any Affiliate. Unless the Committee otherwise provides in any case, your
employment with an Affiliate shall be deemed to terminate for purposes of the
Plan when such Affiliate ceases to be an Affiliate of the Company.

 

10.   Nontransferability. You may not assign or transfer the
Option or any rights under it except by will or by the laws of descent and
distribution, and it shall be exercisable during your life only by you or your
legal representative.

 

11.   Corporate Events. The terms of the Option may be changed
without your consent as provided in the Plan upon a change in control of, or
certain other corporate events affecting, the Company. Without limiting the
foregoing, the number and kind of shares or other securities or property
issuable upon exercise of the Option or the Exercise Price may be changed, the
vesting schedule may be accelerated, the Option may be assumed by another
issuer, or the Option may be terminated, as the Committee may consider
equitable to the participants in the Plan and in the best interests of the
Company. Notwithstanding anything to the contrary in the foregoing, an unvested
Option shall become 100% vested upon a qualifying termination of your
employment (as determined by the Committee) upon the occurrence of a change in
control (as defined by the Committee from time to time).

 

12.   Governing Law. This Agreement shall be governed by and
construed and enforced in accordance with the applicable laws of the United
States of America and the law (other than the law governing conflict of law
questions) of the State of Delaware except to the extent the laws of any other
jurisdiction are mandatorily applicable.

 

13.   Amendment and Termination of the Option. The Option may be
amended or terminated by the Company before the Expiration Date, with or
without your consent, as permitted by the Plan.

 

Incentive Stock
Option Provisions:
 This Option is intended to qualify as an
Incentive Stock Option, as stated on page 1 of this Agreement. Incentive
Stock Option tax treatment requires compliance with a number of factors, and
the Company gives no assurance that this Option will, in fact, be treated as an
Incentive Stock Option, even if stated on page 1 hereof. You agree to
notify the Company promptly in the event that you sell, transfer, exchange or
otherwise dispose of any shares of Stock issued upon exercise of any Incentive
Stock Option before the later of (i) the second anniversary of the date of
grant of the Option and (ii) the first anniversary of the date such shares
were issued upon exercise of the Option.

 

*
* * *

 

4Exhibit 10.5

 

Atlantic Tele-Network, Inc.

Form of

Notice of Grant of
Nonqualified Stock Option

and Option Agreement

 

	
  Administrator

  	
   

  	
  Participant Name:  

  
	
  10 Derby Square

  	
   

  	
  ID:

  
	
  Salem, MA 01970 

  	
   

  	
   

  
	
  (978) 619-1300

  	
   

  	
   

  

 

Atlantic
Tele-Network, Inc., a Delaware corporation (the “Company”), hereby grants
to the Participant named above (“you”) a nonqualified stock option (the “Option”)
to purchase the number of shares of Common Stock, par value $0.01 per share
(the “Stock”) of the Company set forth below on the terms of this Notice of
Grant of Nonqualified Stock Option and Option Agreement (this “Agreement”),
subject to your acceptance of this Agreement and the provisions of the Atlantic
Tele-Network, Inc. 2008 Equity Incentive Plan, as amended from time to
time (the “Plan”).

 

Date of grant:

 

Number of shares:

 

Exercise Price per share:

 

Vesting: 
The Option will vest and become exercisable on
the following schedule:

 

	
  on or after
                          ,
  20    , as to
              
  shares, 

  
	
   

  
	
  on or after
                          ,
  20    , as to
              
  additional shares, 

  
	
   

  
	
  on or after
                          ,
  20    , as to
              
  additional shares, and 

  
	
   

  
	
  on or after
                          ,
  20    , as to
              
  additional shares. 

  

 

Expiration:  The Option will expire on, and may not be
exercised for any shares after,
                    ,
20     (the “Expiration Date”).

 

By
your signature below, you agree with the Company to the terms of this
Agreement.

 

	
  Atlantic Tele-Network, Inc. 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Participant

  	
   

  	
  Date

  
					

 

1

 

Terms of Stock Options

 

1.     Plan Incorporated by Reference. The provisions of the
Plan are incorporated into and made a part of this Agreement by this reference.
Capitalized terms used and not otherwise defined in this Agreement have the
meanings given to them in the Plan. The Committee administers the Plan, and its
determinations regarding the interpretation and operation of the Plan and this Agreement
are final and binding. The Board may in its sole discretion at any time
terminate or from time to time modify and amend the Plan as provided therein.
You may obtain a copy of the Plan without charge upon request to the Company’s Corporate
Secretary.

 

2.     Number of Shares; Exercise Price. The number of shares of
Stock subject to the Option and the Exercise Price to be paid for each share
upon exercise of the Option, both of which are subject to adjustment as
provided in the Plan, are stated on the first page of this Agreement.

 

3.     Exercisability of Option. The Option will vest and may be
exercised from time to time, while you are employed by the Company or one of
its Affiliates, for the respective numbers of shares and at the times stated in
the vesting schedule on the first page of this Agreement, subject to the
other terms hereof. You shall not earn any rights under the Option except in
conformity with such schedule and until all other conditions that are required
to be met in order to exercise the Option have been satisfied.

 

4.     Termination of Employment; Non-Competition and
Non-Solicitation; Forfeiture.

 

4.1   Upon termination of your employment with the Company and its
Affiliates for any reason, any portion of the Option that is unvested as of the
termination date will be canceled for no value. If your termination is:

 

·                for
any reason other than death or disability, any portion of the Option that is
then vested may be exercised only during the 90 calendar days following the
termination date;

 

·                due
to your death or disability (as determined by the Committee), any portion of
the Option that is then vested may be exercised only during the one calendar
year following the termination date;

 

In any event, the Option will expire without value
on, and may not be exercised as to any shares after, the Expiration Date.
Authorized leave of absence or absence on military or government service shall
not constitute termination of your employment for this purpose so long as
either (a) such absence is for a period of no more than 90 calendar days
or (b) your right to re-employment after such absence is guaranteed either
by statute or by contract.

 

4.2   While employed or engaged by the Company or one of its Affiliates
and for a period of one year after the termination or cessation of such
employment or engagement for any reason, you will not, without the Company’s
prior written consent, directly or indirectly: (i) engage in any business
or enterprise (whether as owner, partner, officer, director, employee,
consultant, investor, lender or otherwise, except as the holder of not more
than 1% of the outstanding stock of a publicly-held company) that is
competitive with the Company’s or the Affiliate’s business, including but not
limited to any business or enterprise that develops, manufactures, markets,
licenses, sells or provides any product or service that competes with any
product or service developed, manufactured, marketed, licensed, sold or
provided, or planned to be developed, manufactured, marketed, licensed, sold or
provided, by the Company while you are employed or engaged by the Company or
the Affiliate, in the geographic area in which the Company or the Affiliate
operates; (ii) either alone or in association with others, sell or attempt
to sell to any person or entity that was, or to whom the Company had made or
received a proposal to become, a customer or client of the Company at any time
during the term of my employment or engagement with the Company, any products
or services that are competitive with any products or services developed,
manufactured, marketed, sold or provided by the Company; or (iii) either
alone or in association with others, recruit, solicit or hire in any capacity
any employee of the Company, or induce or attempt to induce any employee of the
Company to discontinue his or her employment relationship with the Company.

 

4.3   Notwithstanding any other provision of this Agreement, (i) the
Option, whether or not vested in whole or in part, shall be canceled and
forfeited and (ii) you shall be obligated to (a) transfer to the
Company any shares previously issued upon exercise of the Option and (b) pay
to the Company all gains realized by any person from the 

 

2

 

disposition of any such
shares if: (I) your employment with the Company or any Affiliate is
terminated for cause or (II) following termination of employment for any
reason, either (A) the Company determines that you engaged in conduct
while an employee that would have justified termination for cause or (B) you
violate any of the provisions set forth in Section 4.2 of this agreement
or any confidentiality or non-competition agreement with the Company or any
Affiliate. Termination for cause means criminal conduct involving a felony in
the U.S. or the equivalent of a felony under the laws of other countries,
material violations of civil law related to your job responsibilities, fraud,
dishonesty, self-dealing, breach of your obligations regarding the Company’s
intellectual property, or willful misconduct that the Committee determines to
be injurious to the Company.

 

4.4   In addition to the remedies provided herein, the Company shall be
entitled to equitable relief, including specific performance and injunctive
relief, to ensure the your compliance with the provisions set forth in Section 4.2
of this Agreement or any confidentiality or non-competition agreement with the
Company or any Affiliate.

 

It is your
responsibility to exercise the Option, if at all, before the Expiration Date or
any earlier date that the Option is terminated. The Company is not responsible
for notifying you before your right to exercise ceases and will not make any
adjustment if the Option terminates unexercised.

 

5.     Method of Exercise. The Option may only be exercised for
the purchase of whole shares. To exercise the Option, you or your legal
representative must deliver to the Company, in the manner prescribed by the
Company, notice of exercise specifying the number of vested shares with respect
to which the Option is being exercised, accompanied by payment of the aggregate
Exercise Price for such shares (i) in cash or by certified check, (ii) in
the form of a payment commitment of a financial or brokerage institution
acceptable to the Committee, (iii) if and as then permitted by the
Committee, in shares of Stock (including without limitation shares withheld
from those issuable under the Option) valued at their Fair Market Value on the
date of delivery (which may, in the Committee’s discretion, be by attestation)
or withholding, or (iv) in such other form as the Committee may approve.
Promptly following such notice and payment (but subject to Sections 6 and 7 hereof),
the Company will deliver to you (or such legal representative) the number of
shares for which the Option is being exercised.

 

6.     Withholding Taxes. You are responsible for any income or
other tax liability attributable to the Option. It is a condition to the
issuance of shares upon exercise of the Option that you shall pay to the
Company, or make provision satisfactory to the Committee for payment of, any
taxes required by law to be withheld with respect to the exercise of the Option
no later than the date of the event creating the tax liability. The Company and
its Affiliates may, to the extent permitted by law, deduct any such tax
obligations from any payment of any kind for your benefit. In the Committee’s
discretion, the minimum tax obligations required by law to be withheld with
respect to the exercise of the Option may be paid in whole or in part in shares
of Stock, including shares withheld from the exercise of the Option, valued at
their Fair Market Value on the date of withholding or delivery.

 

7.     Compliance with Law; Lock-Up Agreement. The Company shall
not be obligated to issue or deliver any shares of Stock or other securities
upon exercise of the Option if it determines that the delivery or issuance
would violate the terms of the Company’s policy regarding insider trading
(including as a result of your need to engage in a sale of those shares in
order to pay applicable withholding taxes). 
The Company shall not be obligated to issue any shares of Stock or other
securities upon exercise of the Option unless the Company is satisfied that all
requirements of law or any applicable stock exchange in connection therewith
(including without limitation the effective registration or exemption of the
issuance of such shares or other securities under the Securities Act of 1933,
as amended, and applicable state securities laws) have been or will be complied
with, and the Committee may impose any restrictions on your rights as it shall
deem necessary or advisable to comply with any such requirements. You further
agree hereby that, as a condition to the purchase of shares upon exercise of
the Option, you will enter into and perform any underwriter’s lock-up agreement
requested by the Company from time to time in connection with public offerings
of the Company’s securities.

 

8.     Rights as Stockholder. You shall have no rights as a
stockholder with respect to any shares of Stock or other securities covered by
the Option until the issuance of such shares or other securities. No adjustment
shall be made for dividends or other rights for which the record date occurs
before the date of any such issuance.

 

3

 

9.     Effect on Your
Employment. Neither the adoption, maintenance, or operation of the Plan nor
the award of the Option confers upon you any right to continue your employment
with the Company or any Affiliate, nor shall they interfere with the rights of
the Company or any Affiliate to terminate or otherwise change the terms of such
employment or service at any time, including, without limitation, the right to
promote, demote or reassign you from one position to another in the Company or
any Affiliate. Unless the Committee otherwise provides in any case, your employment
with an Affiliate shall be deemed to terminate for purposes of the Plan when
such Affiliate ceases to be an Affiliate of the Company.

 

10.   Nontransferability. You may not assign or transfer the
Option or any rights under it except by will or by the laws of descent and
distribution, and it shall be exercisable during your life only by you or your
legal representative; provided, however, that you may transfer the Option to
the extent expressly permitted in writing by the Committee.

 

11.   Corporate Events. The terms of the Option may be changed
without your consent as provided in the Plan upon a change in control of, or
certain other corporate events affecting, the Company. Without limiting the
foregoing, the number and kind of shares or other securities or property
issuable upon exercise of the Option or the Exercise Price may be changed, the
vesting schedule may be accelerated, the Option may be assumed by another
issuer, or the Option may be terminated, as the Committee may consider
equitable to the participants in the Plan and in the best interests of the
Company. Notwithstanding anything to the contrary in the foregoing, an unvested
Option shall become 100% vested upon a qualifying termination of your
employment (as determined by the Committee) upon the occurrence of a change in
control (as defined by the Committee from time to time).

 

12.   Governing Law. This Agreement shall be governed by and
construed and enforced in accordance with the applicable laws of the United
States of America and the law (other than the law governing conflict of law
questions) of the State of Delaware except to the extent the laws of any other
jurisdiction are mandatorily applicable.

 

13.   Amendment and Termination of the Option. The Option may be
amended or terminated by the Company before the Expiration Date, with or
without your consent, as permitted by the Plan.

 

*
* * *

 

4

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