Document:

EX-10.39 Form of Indemnification Agreement

Exhibit 10.39

INDEMNIFICATION AGREEMENT

     THIS
INDEMNIFICATION AGREEMENT, is made and entered into as of the ___ day of ___, 2008,
between Terremark Worldwide, Inc., a Delaware corporation (the “Company”), and __________________
(the “Indemnitee”).

Recitals

	 	A.	 	The Company and/or its subsidiaries desires to retain the services of the
Indemnitee as __________________, [and a Director] of the Company.
	 
	 	B.	 	As a condition to the Indemnitee’s agreement to serve the Company as such, the
Indemnitee requires that he be indemnified from liability to the fullest extent
permitted by law.
	 
	 	C.	 	The Company is willing to indemnify the Indemnitee to the fullest extent
permitted by law in order to retain the services of the Indemnitee.

Agreement

     NOW, THEREFORE, for and in consideration of the mutual premises and covenants contained
herein, the Company and the Indemnitee agree as follows:

          Section 1. MANDATORY INDEMNIFICATION IN PROCEEDINGS OTHER THAN THOSE BY OR IN THE
RIGHT OF THE COMPANY. Subject to Section 4 hereof, the Company shall indemnify and hold
harmless the Indemnitee from and against any and all claims, damages, expenses (including
attorneys’ fees), judgments, penalties, fines (including excise taxes assessed with respect to an
employee benefit plan), amounts paid in settlement and all other liabilities actually and
reasonably incurred or paid by him in connection with the investigation, defense, prosecution,
settlement or appeal of any threatened, pending or completed action, suit or proceeding, whether
civil, criminal, administrative, investigative or otherwise (other than an action by or in the
right of the Company) and to which the Indemnitee was or is a party or is threatened to be made a
party by reason of the fact that the Indemnitee is or was an officer, director, stockholder,
employee or agent of the Company, or is or was serving at the request of the Company as an officer,
director, partner, trustee, employee or agent of another corporation, partnership, joint venture,
trust, employee benefit plan or other enterprise, or by reason of anything done or not done by the
Indemnitee in any such capacity or capacities, provided that the Indemnitee acted in good faith and
in a manner he reasonably believed to be in or not opposed to the best interests of the Company,
and, with respect to any criminal action or proceeding, had no reasonable cause to believe his
conduct was unlawful.

          Section 2. MANDATORY INDEMNIFICATION IN PROCEEDINGS BY OR IN THE RIGHT OF THE
COMPANY. Subject to Section 4 hereof, the Company shall indemnify and hold harmless the
Indemnitee from and against any and all expenses (including attorneys’ fees) actually and
reasonably incurred or paid by him in connection with the investigation, defense, prosecution,
settlement or appeal of any threatened, pending or completed action, suit or proceeding by or in
the right of the Company to procure a judgment in its favor, whether civil, criminal,
administrative, investigative or otherwise, and to which the Indemnitee was or is a party or is
threatened to be made a party by reason of the fact that the Indemnitee is or was an officer,
director, stockholder, employee or agent of the Company, or is or was serving at the request of the
Company as an officer, director, partner, trustee, employee or agent of another corporation,
partnership, joint venture, trust, employee benefit plan or other enterprise, or by reason of
anything done or not done by the Indemnitee in any such capacity or capacities, provided that (i)
the Indemnitee acted in good faith and in a manner he reasonably believed to be in or not opposed
to the best interests of the Company, and (ii) no indemnification shall be made under this Section
2 in respect of any claim, issue or matter as to which the Indemnitee shall have been adjudged to
be liable to
the Company for misconduct in the performance of his duty to the Company unless and only to
the extent that the court in which such action, suit or proceeding was brought (or any other court
of competent jurisdiction) shall determine upon application that, despite the adjudication of
liability but in view of all the circumstances of the case, the Indemnitee is fairly and reasonably
entitled to indemnity for such expenses which such court shall deem proper.

 

 

          Section 3. REIMBURSEMENT OF EXPENSES FOLLOWING ADJUDICATION OF NEGLIGENCE.
The Company shall reimburse the Indemnitee for any expenses (including attorneys’ fees) and amounts
paid in settlement actually and reasonably incurred or paid by him in connection with the
investigation, defense, settlement or appeal of any action or suit described in Section 2 hereof
that results in an adjudication that the Indemnitee was liable for negligence, gross negligence or
recklessness (but not willful misconduct) in the performance of his duty to the Company; provided,
however, that the Indemnitee acted in good faith and in a manner he believed to be in the best
interests of the Company.

          Section 4. AUTHORIZATION OF INDEMNIFICATION. Any indemnification under
Sections 1 and 2 hereof (unless ordered by a court) and any reimbursement made under Section 3
hereof shall be made by the Company only as authorized in the specific case upon a determination
(the “Determination”) that indemnification or reimbursement of the Indemnitee is proper in the
circumstances because the Indemnitee has met the applicable standard of conduct set forth in
Section 1, 2 or 3 hereof, as the case may be. Subject to Sections 5.6, 5.7, 5.8 and 8 of this
Agreement, the Determination shall be made in the following order of preference:

               (a) first, by the Company’s Board of Directors (the “Board”) by majority vote or consent of
directors (“Disinterested Directors”) who are not, at the time of the Determination, named parties
to such action, suit or proceeding, even though such Disinterested Directors may be less than a
quorum; or

               (b) next, if the majority vote or consent of the Disinterested Directors cannot be obtained,
by majority vote or consent of a committee duly designated by such Disinterested Directors
consisting solely of two or more Disinterested Directors, even though such Disinterested Directors
may be less than a quorum; or

               (c) next, if such a committee cannot be designated, by any independent legal counsel (who may
be any outside counsel regularly employed by the Company); or

               (d) next, if such legal counsel determination cannot be obtained, by vote or consent of the
holders of a majority of the Company’s Common Stock that are represented in person or by proxy at a
meeting called for such purpose.

          4.1 No Presumptions. The termination of any action, suit or proceeding by judgment,
order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of
itself, create a presumption that the Indemnitee did not act in good faith and in a manner that he
reasonably believed to be in or not opposed to the best interests of the Company, and with respect
to any criminal action or proceeding, had reasonable cause to believe that his conduct was
unlawful.

          4.2 Benefit Plan Conduct. The Indemnitee’s conduct with respect to an employee
benefit plan for a purpose he reasonably believed to be in the interests of the participants in and
beneficiaries of the plan shall be deemed to be conduct that the Indemnitee reasonably believed to
be not opposed to the best interests of the Company.

          4.3 Reliance as Safe Harbor. For purposes of any Determination hereunder, the
Indemnitee shall be deemed to have acted in good faith and in a manner he reasonably believed to be
in or not opposed to the best interests of the Company, or, with respect to any criminal action or
proceeding, to have had no reasonable cause to believe his conduct was unlawful, if his action is
based on (i) the records or books of account of the Company or another enterprise, including
financial statements, (ii)

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information supplied to him by the officers of the Company or another enterprise in the course
of their duties, (iii) the advice of legal counsel for the Company or another enterprise, or (iv)
information or records given or reports made to the Company or another enterprise by an independent
certified public accountant or by an appraiser or other expert selected with reasonable care by the
Company or another enterprise. The term “another enterprise” as used in this Section 4.3 shall
mean any other corporation or any partnership, joint venture, trust, employee benefit plan or other
enterprise of which the Indemnitee is or was serving at the request of the Company as an officer,
director, partner, trustee, employee or agent. The provisions of this Section 4.3 shall not be
deemed to be exclusive or to limit in any way the other circumstances in which the Indemnitee may
be deemed to have met the applicable standard of conduct set forth in Sections 1, 2 or 3 hereof, as
the case may be.

          4.4 Success on Merits or Otherwise. Notwithstanding any other provision of this
Agreement, to the extent that the Indemnitee has been successful on the merits or otherwise in
defense of any action, suit or proceeding described in Section 1 or 2 hereof, or in defense of any
claim, issue or matter therein, he shall be indemnified against expenses (including attorneys’
fees) actually and reasonably incurred by him in connection with the investigation, defense,
settlement or appeal thereof. For purposes of this Section 4.4, the term “successful on the merits
or otherwise” shall include, but not be limited to, (i) any termination, withdrawal or dismissal
(with or without prejudice) of any claim, action, suit or proceeding against the Indemnitee without
any express finding of liability or guilt against him, (ii) the expiration of 120 days after the
making of any claim or threat of an action, suit or proceeding without the institution of the same
and without any promise or payment made to induce a settlement, or (iii) the settlement of any
action, suit or proceeding under Section 1, 2 or 3 hereof pursuant to which the Indemnitee pays
less than $25,000.

          4.5 Partial Indemnification or Reimbursement. If the Indemnitee is entitled under any
provision of this Agreement to indemnification and/or reimbursement by the Company for some or a
portion of the claims, damages, expenses (including attorneys’ fees), judgments, fines or amounts
paid in settlement by the Indemnitee in connection with the investigation, defense, settlement or
appeal of any action specified in Section 1, 2 or 3 hereof, but not, however, for the total amount
thereof, the Company shall nevertheless indemnify and/or reimburse the Indemnitee for the portion
thereof to which the Indemnitee is entitled. The party or parties making the Determination shall
determine the portion (if less than all) of such claims, damages, expenses (including attorneys’
fees), judgments, fines or amounts paid in settlement for which the Indemnitee is entitled to
indemnification and/or reimbursement under this Agreement.

          4.6 Limitations on Indemnification. No indemnification pursuant to Section 1 or 2
hereof shall be paid by the Company if a judgment (after exhaustion of all appeals) or other final
adjudication determines that the Indemnitee’s actions, or omissions to act, were material to the
cause of action so adjudicated and constitute:

               (a) a violation of criminal law, unless the Indemnitee had reasonable cause to believe his
conduct was lawful or had no reasonable cause to believe his conduct was unlawful;

               (b) a transaction from which the Indemnitee derived an improper personal benefit within the
meaning of the Delaware General Corporation Law;

               (c) in the event that the Indemnitee is a director of the Company, a circumstance under which
the liability provisions of Section 174 of the Delaware General Corporation Law are applicable; or

               (d) willful misconduct or conscious disregard for the best interests of the Company in a
proceeding by or in the right of the Company to procure a judgment in its favor or in a proceeding
by or in the right of a stockholder of the Company.

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          4.7 Costs. All costs of making the Determination required by Section 4 hereof shall
be borne solely by the Company, including, but not limited to, the costs of legal counsel, proxy
solicitations and judicial determinations. The Company shall also be solely responsible for paying
(i) all reasonable expenses incurred by the Indemnitee to enforce this Agreement, including, but
not limited to, the costs incurred by the Indemnitee to obtain court-ordered indemnification
pursuant to Section 8 hereof, regardless of the outcome of any such application or proceeding, and
(ii) all costs of defending any suits or proceedings challenging payments to the Indemnitee under
this Agreement.

          Section 5. PROCEDURES FOR DETERMINATION OF WHETHER STANDARDS HAVE BEEN SATISFIED.

          5.1 Timing of the Determination. The Company shall use its best efforts to make the
Determination contemplated by Section 4 hereof promptly. In addition, the Company agrees:

               (a) if the Determination is to be made by the Board or a committee thereof, such Determination
shall be made not later than 30 days after a written request for a Determination (a “Request”) is
delivered to the Company by the Indemnitee;

               (b) if the Determination is to be made by independent legal counsel, such Determination shall
be made not later than 45 days after a Request is delivered to the Company by the Indemnitee; and

               (c) if the Determination is to be made by the stockholders of the Company, such Determination
shall be made not later than 120 days after a Request is delivered to the Company by the
Indemnitee.

The failure to make a Determination within the above-specified time period shall constitute a
Determination approving full indemnification or reimbursement of the Indemnitee. Notwithstanding
anything herein to the contrary, a Determination may be made in advance of (i) the Indemnitee’s
payment (or incurring) of expenses with respect to which indemnification or reimbursement is
sought, and/or (ii) final disposition of the action, suit or proceeding with respect to which
indemnification or reimbursement is sought.

          5.2 Reasonableness of Expenses. The evaluation and finding as to the reasonableness
of expenses incurred by the Indemnitee for purposes of this Agreement shall be made (in the
following order of preference) within 30 days after the Indemnitee’s delivery to the Company of a
Request that includes a reasonable accounting of expenses incurred:

               (a) first, by the Board by majority vote or consent of the Disinterested Directors, even
though such Disinterested Directors may be less than a quorum; or

               (b) next, if such a quorum cannot be obtained, by majority vote or consent of a committee duly
designated by the Disinterested Directors, consisting solely of two or more Disinterested
Directors, even though such Disinterested Directors may be less than a quorum; or

               (c) next, if such a committee cannot be designated, by any independent legal counsel (who may
be any outside counsel regularly employed by the Company);

provided, however, that if a determination as to reasonableness of expenses is not made under any
of the foregoing subsections (a), (b) and (c), such determination shall be made, not later than 120
days after the Indemnitee’s delivery of such Request, by vote or consent of the holders of a
majority of the Company’s Common Stock that are represented in person or by proxy at a meeting
called for such purpose.

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All expenses shall be considered reasonable for purposes of this Agreement if the finding
contemplated by this Section 5.3 is not made within the prescribed time. The finding required by
this Section 5.3 may be made in advance of the payment (or incurring) of the expenses for which indemnification or
reimbursement is sought.

          5.3 Payment of Indemnified Amount. Immediately following a Determination that the
Indemnitee has met the applicable standard of conduct set forth in Section 1, 2 or 3 hereof, as the
case may be, and the finding of reasonableness of expenses contemplated by Section 5.3 hereof, or
the passage of time prescribed for making such determination(s), the Company shall pay to the
Indemnitee in cash the amount to which the Indemnitee is entitled to be indemnified and/or
reimbursed, as the case may be, without further authorization or action by the Board; provided,
however, that the expenses for which indemnification or reimbursement is sought have actually been
incurred by the Indemnitee.

          5.4 Stockholder Vote on Determination. Notwithstanding the provisions of Section 145
of the Delaware General Corporation Law, the Indemnitee and any other stockholder who is a party to
the proceeding for which indemnification or reimbursement is sought shall be entitled to vote on
any Determination to be made by the Company’s stockholders, including a Determination made pursuant
to Section 5.7 hereof. In addition, in connection with each meeting at which a stockholder
Determination will be made, the Company shall solicit proxies that expressly include a proposal to
indemnify or reimburse the Indemnitee. Any Company proxy statement relating to a proposal to
indemnify or reimburse the Indemnitee shall not include a recommendation against indemnification or
reimbursement.

          5.5 Selection of Independent Legal Counsel. If the Determination required under
Section 4 is to be made by independent legal counsel, such counsel shall be selected by the
Indemnitee with the approval of the Board, which approval shall not be unreasonably withheld. The
fees and expenses incurred by counsel in making any Determination (including Determinations
pursuant to Section 5.8 hereof) shall be borne solely by the Company regardless of the results of
any Determination and, if requested by counsel, the Company shall give such counsel an appropriate
written agreement with respect to the payment of their fees and expenses and such other matters as
may be reasonably requested by counsel.

          5.6 Right of Indemnitee to Appeal an Adverse Determination by Board. If a
Determination is made by the Board or a committee thereof that the Indemnitee did not meet the
applicable standard of conduct set forth in Section 1, 2 or 3 hereof, upon the written request of
the Indemnitee and the Indemnitee’s delivery of $500 to the Company, the Company shall cause a new
Determination to be made by the Company’s stockholders at the next regular or special meeting of
stockholders. Subject to Section 8 hereof, such Determination by the Company’s stockholders shall
be binding and conclusive for all purposes of this Agreement.

          5.7 Right of Indemnitee To Select Forum For Determination. If, at any time subsequent
to the date of this Agreement, “Continuing Directors” do not constitute a majority of the members
of the Board, or there is otherwise a change in control of the Company (as contemplated by Item
403(c) of Regulation S-K), then upon the request of the Indemnitee, the Company shall cause the
Determination required by Section 4 hereof to be made by independent legal counsel selected by the
Indemnitee and approved by the Board (which approval shall not be unreasonably withheld), which
counsel shall be deemed to satisfy the requirements of clause (3) of Section 4 hereof. If none of
the legal counsel selected by the Indemnitee are willing and/or able to make the Determination,
then the Company shall cause the Determination to be made by a majority vote or consent of a Board
committee consisting solely of Continuing Directors. For purposes of this Agreement, a “Continuing
Director” means either a member of the Board at the date of this Agreement or a person nominated to
serve as a member of the Board by a majority of the then Continuing Directors.

          5.8 Access by Indemnitee to Determination. The Company shall afford to the Indemnitee
and his representatives ample opportunity to present evidence of the facts upon which the
Indemnitee relies for indemnification or reimbursement, together with other information relating to
any requested Determination. The Company shall also afford the Indemnitee the reasonable
opportunity to
include such evidence and information in any Company proxy statement relating to a stockholder
Determination.

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          5.9 Judicial Determinations in Derivative Suits. In each action or suit described in
Section 2 hereof, the Company shall cause its counsel to use its best efforts to obtain from the
Court in which such action or suit was brought (i) an express adjudication whether the Indemnitee
is liable for negligence or misconduct in the performance of his duty to the Company, and, if the
Indemnitee is so liable, (ii) a determination whether and to what extent, despite the adjudication
of liability but in view of all the circumstances of the case (including this Agreement), the
Indemnitee is fairly and reasonably entitled to indemnification.

          Section 6. SCOPE OF INDEMNITY. The actions, suits and proceedings described
in Sections 1 and 2 hereof shall include, for purposes of this Agreement, any actions that involve,
directly or indirectly, activities of the Indemnitee both in his official capacities as a Company
director or officer and actions taken in another capacity while serving as director or officer,
including, but not limited to, actions or proceedings involving (i) compensation paid to the
Indemnitee by the Company, (ii) activities by the Indemnitee on behalf of the Company, including
actions in which the Indemnitee is plaintiff, (iii) actions alleging a misappropriation of a
“corporate opportunity,” (iv) responses to a takeover attempt or threatened takeover attempt of the
Company, (v) transactions by the Indemnitee in Company securities, and (vi) the Indemnitee’s
preparation for and appearance (or potential appearance) as a witness in any proceeding relating,
directly or indirectly, to the Company. In addition, the Company agrees that, for purposes of this
Agreement, all services performed by the Indemnitee on behalf of, in connection with or related to
any subsidiary of the Company, any employee benefit plan established for the benefit of employees
of the Company or any subsidiary, any corporation or partnership or other entity in which the
Company or any subsidiary has a 5% ownership interest, or any other affiliate of the Company, shall
be deemed to be at the request of the Company.

          Section 7. ADVANCE FOR EXPENSES.

          7.1 Mandatory Advance. Expenses (including attorneys’ fees, court costs, judgments,
fines, amounts paid in settlement and other payments) incurred by the Indemnitee in investigating,
defending, settling or appealing any action, suit or proceeding described in Section 1 or 2 hereof
shall be paid by the Company in advance of the final disposition of such action, suit or
proceeding. The Company shall promptly pay the amount of such expenses to the Indemnitee, but in
no event later than 10 days following the Indemnitee’s delivery to the Company of a written request
for an advance pursuant to this Section 7, together with a reasonable accounting of such expenses.

          7.2 Undertaking to Repay. The Indemnitee hereby undertakes and agrees to repay to the
Company any advances made pursuant to this Section 7 if and to the extent that it shall ultimately
be found that the Indemnitee is not entitled to be indemnified by the Company for such amounts.

          7.3 Miscellaneous. The Company shall make the advances contemplated by this Section 7
regardless of the Indemnitee’s financial ability to make repayment, and regardless whether
indemnification of the Indemnitee by the Company will ultimately be required. Any advances and
undertakings to repay pursuant to this Section 7 shall be unsecured and interestfree.

          Section 8. COURT-ORDERED INDEMNIFICATION. Regardless whether the Indemnitee
has met the standard of conduct set forth in Section 1, 2 or 3 hereof, as the case may be, and
notwithstanding the presence or absence of any Determination whether such standards have been
satisfied, the Indemnitee may apply for indemnification (and/or reimbursement pursuant to Section 3
or 12 hereof) to the court conducting any proceeding to which the Indemnitee is a party or to any
other court of competent jurisdiction. On receipt of an application, the court, after giving any
notice the court considers necessary, may order indemnification (and/or reimbursement) if it
determines the Indemnitee is fairly and
reasonably entitled to indemnification (and/or reimbursement) in view of all the relevant
circumstances (including this Agreement).

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          Section 9. NONDISCLOSURE OF PAYMENTS. Except as expressly required by law,
neither party shall disclose any payments under this Agreement unless prior approval of the other
party is obtained. Any payments to the Indemnitee that must be disclosed shall, unless otherwise
required by law, be described only in Company proxy or information statements relating to special
and/or annual meetings of the Company’s stockholders, and the Company shall afford the Indemnitee
the reasonable opportunity to review all such disclosures and, if requested, to explain in such
statement any mitigating circumstances regarding the events reported.

          Section 10. COVENANT NOT TO SUE, LIMITATION OF ACTIONS AND RELEASE OF CLAIMS.
No legal action shall be brought and no cause of action shall be asserted by or on behalf of the
Company (or any of its subsidiaries) against the Indemnitee, his spouse, heirs, executors, personal
representatives or administrators after the expiration of two (2) years following the date the
Indemnitee ceases (for any reason) to serve as either an executive officer or director of the
Company, and any and all such claims and causes of action of the Company (or any of its
subsidiaries) shall be extinguished and deemed released unless asserted by filing of a legal action
within such twoyear period.

          Section 11. INDEMNIFICATION OF INDEMNITEE’S ESTATE. Notwithstanding any other
provision of this Agreement, and regardless whether indemnification of the Indemnitee would be
permitted and/or required under this Agreement, if the Indemnitee is deceased, the Company shall
indemnify and hold harmless the Indemnitee’s estate, spouse, heirs, administrators, personal
representatives and executors (collectively the “Indemnitee’s Estate”) against, and the Company
shall assume, any and all claims, damages, expenses (including attorneys’ fees), penalties,
judgments, fines and amounts paid in settlement actually incurred by the Indemnitee or the
Indemnitee’s Estate in connection with the investigation, defense, settlement or appeal of any
action described in Section 1 or 2 hereof. Indemnification of the Indemnitee’s Estate pursuant to
this Section 11 shall be mandatory and not require a Determination or any other finding that the
Indemnitee’s conduct satisfied a particular standard of conduct.

          Section 12. REIMBURSEMENT OF ALL LEGAL EXPENSES. Notwithstanding any other
provision of this Agreement, and regardless of the presence or absence of any Determination, the
Company promptly (but not later than 30 days following the Indemnitee’s submission of a reasonable
accounting) shall reimburse the Indemnitee for all attorneys’ fees and related court costs and
other expenses incurred by the Indemnitee (but not for judgments, penalties, fines or amounts paid
in settlement) in connection with the investigation, defense, settlement or appeal of any action
described in Section 1 or 2 hereof (including, but not limited to, the matters specified in Section
6 hereof).

          Section 13. MISCELLANEOUS.

          13.1 Notice Provision. Any notice, payment, demand or communication required or
permitted to be delivered or given by the provisions of this Agreement shall be deemed to have been
effectively delivered or given and received on the date personally delivered to the respective
party to whom it is directed, or when deposited by registered or certified mail, with postage and
charges prepaid and addressed to the parties at the respective addresses set forth below opposite
their signatures to this Agreement, or to such other address as to which notice is given.

          13.2 Entire Agreement. Except for the Company’s Articles of Incorporation, this
Agreement constitutes the entire understanding of the parties and supersedes all prior
understandings, whether written or oral, between the parties with respect to the subject matter of
this Agreement.

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          13.3 Severability of Provisions. If any provision of this Agreement is held to be
illegal, invalid or unenforceable under present or future laws effective during the term of this
Agreement, such
provision shall be fully severable; this Agreement shall be construed and enforced as if such
illegal, invalid or unenforceable provision had never comprised a part of this Agreement; and the
remaining provisions of this Agreement shall remain in full force and effect and shall not be
affected by the illegal, invalid or unenforceable provision or by its severance from this
Agreement. Furthermore, in lieu of each such illegal, invalid or unenforceable provision there
shall be added automatically as a part of this Agreement a provision as similar in terms to such
illegal, invalid or unenforceable provision as may be possible and be legal, valid and enforceable.

          13.4 Applicable Law. This Agreement shall be governed by and construed under the laws
of the State of Delaware.

          13.5 Execution in Counterparts. This Agreement and any amendment may be executed
simultaneously or in two or more counterparts, each of which together shall constitute one and the
same instrument.

          13.6 Cooperation and Intent. The Company shall cooperate in good faith with the
Indemnitee and use its best efforts to ensure that the Indemnitee is indemnified and/or reimbursed
for liabilities described herein to the fullest extent permitted by law.

          13.7 Amendment. No amendment, modification or alteration of the terms of this
Agreement shall be binding unless in writing, dated subsequent to the date of this Agreement, and
executed by the parties.

          13.8 Binding Effect. The obligations of the Company to the Indemnitee hereunder shall
survive and continue as to the Indemnitee even if the Indemnitee ceases to be a director, officer,
employee and/or agent of the Company. Each and all of the covenants, terms and provisions of this
Agreement shall be binding upon and inure to the benefit of the successors to the Company and, upon
the death of the Indemnitee, to the benefit of the Indemnitee’s estate, heirs, executors,
administrators and personal representatives of the Indemnitee.

          13.9 Gender and Number. Wherever the context shall so require, all words herein in
the male gender shall be deemed to include the female or neuter gender, all singular words shall
include the plural and all plural words shall include the singular.

          13.10 Nonexclusivity. The rights of indemnification and reimbursement provided in
this Agreement shall be in addition to any rights to which the Indemnitee may otherwise be entitled
by statute, bylaw, agreement, vote of stockholders or otherwise.

          13.11 Effective Date. The provisions of this Agreement shall cover claims, actions,
suits and proceedings whether now pending or hereafter commenced and shall be retroactive to cover
acts or omissions or alleged acts or omissions which heretofore have taken place.

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

	 	 	 	 	 
	ADDRESS:	 	THE COMPANY:
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	ADDRESS:	 	THE INDEMNITEE:
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	 

8EX-10.40 Form of Restricted Stock Agreement

Exhibit 10.40

TERREMARK WORLDWIDE, INC.

RESTRICTED STOCK AGREEMENT

FOR

[EMPLOYEE NAME]

1. Award of Restricted Stock. The Committee hereby grants, as of _______________ (the “Date of
Grant”), to [EMPLOYEE NAME] restricted shares of the Company’s Common Stock, par value $.001 per
share (collectively the “Restricted Stock”). The Restricted Stock shall be subject to the terms,
provisions and restrictions set forth in this Agreement and the Company’s 2005 Executive Incentive
Compensation Plan (the “Plan”), which is incorporated herein for all purposes. As a condition to
entering into this Agreement, and as a condition to the issuance of any Shares (or any other
securities of the Company), the Recipient agrees to be bound by all of the terms and conditions
herein and in the Plan. Unless otherwise provided herein, terms used herein that are defined in
the Plan and not defined herein shall have the meanings attributable thereto in the Plan.

2. Vesting of Restricted Stock.

     (a) Except as otherwise provided in Sections 2(b), [2(c),] 2(d), and 4 hereof, the shares of
Restricted Stock shall become vested in the following amounts, at the following times and upon the
following conditions, provided that the Continuous Service of the Recipient continues through and
on the applicable Vesting Date:

	 	 	 	 	 	 	 	 	 	 	 
	Number of Shares of Restricted Stock	 	Vesting Date
	[

	 	XXX
	 	]
	 	[
	 	DATE
	 	]
	[

	 	XXX
	 	]
	 	[
	 	DATE
	 	]
	[

	 	XXX
	 	]
	 	[
	 	DATE
	 	]

     There shall be no proportionate or partial vesting of shares of Restricted Stock in or during
the months, days or periods prior to each Vesting Date, and all vesting of shares of Restricted
Stock shall occur only on the applicable Vesting Date.

     (b) In the event that a Change in Control of the Company occurs during the Recipient’s Continuous
Service, the shares of Restricted Stock subject to this Agreement shall become immediately vested
as of the date of the Change in Control.

     (c) In the event that the Recipient’s Continuous Service terminates by reason of the Recipient’s
Disability or death, all of the shares of Restricted Stock subject to this Agreement shall be
immediately vested as of the date of such Disability or death, whichever is applicable, and shall
be delivered, subject to any requirements under this Agreement, to the Recipient, in the
event of his or her Disability, or in the event of the Recipient’s death, to the beneficiary
or beneficiaries designated by the Recipient, or if the Recipient has not so designated any
beneficiary(ies), or no designated beneficiary survives the Recipient, such shares shall be
delivered to the personal representative of the Recipient’s estate.

 

 

     (d) Notwithstanding any other term or provision of this Agreement, the Board or the Committee
shall be authorized, in its sole discretion, based upon its review and evaluation of the
performance of the Recipient and of the Company, to accelerate the vesting of any shares of
Restricted Stock under this Agreement, at such times and upon such terms and conditions as the
Board or the Committee shall deem advisable.

     (e) For purposes of this Agreement, the following terms shall have the meanings indicated:

          (i) “Non-Vested Shares” means any portion of the Restricted Stock subject to this Agreement
that has not become vested pursuant to this Section 2.

          (ii) “Vested Shares” means any portion of the Restricted Stock subject to this Agreement that
is and has become vested pursuant to this Section 2.

3. Delivery of Restricted Stock.

     (a) One or more stock certificates evidencing the Restricted Stock shall be issued in the name of the
Recipient but shall be held and retained by the Records Administrator of the Company until the date
(the “Applicable Date”) on which the shares (or a portion thereof) subject to this Restricted Stock
award become Vested Shares pursuant to Section 2 hereof, subject to the provisions of Section 4
hereof. All such stock certificates shall bear the following legends, along with such other
legends that the Board or the Committee shall deem necessary and appropriate or which are otherwise
required or indicated pursuant to any applicable stockholders agreement:

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO SUBSTANTIAL VESTING AND
OTHER RESTRICTIONS AS SET FORTH IN THE RESTRICTED STOCK AGREEMENT BETWEEN THE ISSUER
AND THE ORIGINAL HOLDER OF THE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE
PRINCIPAL OFFICE OF THE ISSUER. SUCH RESTRICTIONS ARE BINDING ON TRANSFEREES OF
THESE SHARES, AND INCLUDE VESTING CONDITIONS WHICH MAY RESULT IN THE COMPLETE
FORFEITURE OF THE SHARES.

     (b) The Recipient shall deposit with the Company stock powers or other instruments of transfer or
assignment, duly endorsed in blank with signature(s) guaranteed, corresponding to each certificate
representing shares of Restricted Stock until such shares become Vested Shares. If the Recipient
shall fail to provide the Company with any such stock power or other instrument of transfer or
assignment, the Recipient hereby irrevocably appoints the Secretary of the Company as his
attorney-in-fact, with full power of appointment and substitution, to execute and
deliver any such power or other instrument which may be necessary to effectuate the transfer
of the Restricted Stock (or assignment of distributions thereon) on the books and records of the
Company.

2

 

     (c) On or after each Applicable Date, upon written request to the Company by the Recipient, the
Company shall promptly cause a new certificate or certificates to be issued for and with respect to
all shares that become Vested Shares on that Applicable Date, which certificate(s) shall be
delivered to the Recipient as soon as administratively practicable after the date of receipt by the
Company of the Recipient’s written request. The new certificate or certificates shall continue to
bear those legends and endorsements that the Company shall deem necessary or appropriate (including
those relating to restrictions on transferability and/or obligations and restrictions under the
Securities Laws).

4. Forfeiture of Non-Vested Shares. If the Recipient’s Continuous Service with the Company and the
Related Entities is terminated for any reason, any Shares of Restricted Stock that are not Vested
Shares, and that do not become Vested Shares pursuant to Section 2 hereof as a result of such
termination, shall be forfeited immediately upon such termination of Continuous Service and revert
back to the Company without any payment to the Recipient. The Committee shall have the power and
authority to enforce on behalf of the Company any rights of the Company under this Agreement in the
event of the Recipient’s forfeiture of Non-Vested Shares pursuant to this Section 4.

5. Rights with Respect to Restricted Stock.

     (a) Except as otherwise provided in this Agreement, the Recipient shall have, with respect to all
of the shares of Restricted Stock, whether Vested Shares or Non-Vested Shares, all of the rights of
a holder of shares of common stock of the Company, including without limitation (i) the right to
vote such Restricted Stock, (ii) the right to receive dividends, if any, as may be declared on the
Restricted Stock from time to time, and (iii) the rights available to all holders of shares of
common stock of the Company upon any merger, consolidation, reorganization, liquidation or
dissolution, stock split-up, stock dividend or recapitalization undertaken by the Company;
provided, however, that all of such rights shall be subject to the terms, provisions, conditions
and restrictions set forth in this Agreement (including without limitation conditions under which
all such rights shall be forfeited). Any Shares issued to the Recipient as a dividend with
respect to shares of Restricted Stock shall have the same status and bear the same legend as the
shares of Restricted Stock and shall be held by the Company, if the shares of Restricted Stock that
such dividend is attributed to is being so held, unless otherwise determined by the Committee. In
addition, notwithstanding any provision to the contrary herein, any cash dividends declared with
respect to shares of Restricted Stock subject to this Agreement shall be held in escrow by the
Committee until such time as the shares of Restricted Stock that such cash dividends are attributed
to shall become Vested Shares, and in the event that such shares of Restricted Stock are
subsequently forfeited, the cash dividends attributable to such portion shall be forfeited as well.

3

 

     (b) If at any time while this Agreement is in effect (or shares granted hereunder shall be or
remain unvested while Recipient’s Continuous Service continues and has not yet
terminated or ceased for any reason), there shall be any increase or decrease in the number of
issued and outstanding Shares of the Company through the declaration of a stock dividend or through
any recapitalization resulting in a stock split-up, combination or exchange of such Shares, then
and in that event, the Board or the Committee shall make any adjustments in a fair and appropriate,
in view of such change, in the number of shares of Restricted Stock then subject to this Agreement.
If any such adjustment shall result in a fractional share, such fraction shall be disregarded.

     (c) Notwithstanding any term or provision of this Agreement to the contrary, the existence of this
Agreement, or of any outstanding Restricted Stock awarded hereunder, shall not affect in any manner
the right, power or authority of the Company to make, authorize or consummate: (i) any or all
adjustments, recapitalizations, reorganizations or other changes in the Company’s capital structure
or its business; (ii) any merger, consolidation or similar transaction by or of the Company; (iii)
any offer, issue or sale by the Company of any capital stock of the Company, including any equity
or debt securities, or preferred or preference stock that would rank prior to or on parity with the
Restricted Stock and/or that would include, have or possess other rights, benefits and/or
preferences superior to those that the Restricted Stock includes, has or possesses, or any
warrants, options or rights with respect to any of the foregoing; (iv) the dissolution or
liquidation of the Company; (v) any sale, transfer or assignment of all or any part of the stock,
assets or business of the Company; or (vi) any other corporate transaction, act or proceeding
(whether of a similar character or otherwise).

6. Transferability. Unless otherwise determined by the Committee, the shares of Restricted Stock are
not transferable unless and until they become Vested Shares in accordance with this Agreement,
otherwise than by will or under the applicable laws of descent and distribution. The terms of this
Agreement shall be binding upon the executors, administrators, heirs, successors and assigns of the
Recipient. Except as otherwise permitted pursuant to the first sentence of this Section, any
attempt to effect a Transfer of any shares of Restricted Stock prior to the date on which the
shares become Vested Shares shall be void ab initio. For purposes of this Agreement, “Transfer”
shall mean any sale, transfer, encumbrance, gift, donation, assignment, pledge, hypothecation, or
other disposition, whether similar or dissimilar to those previously enumerated, whether voluntary
or involuntary, and including, but not limited to, any disposition by operation of law, by court
order, by judicial process, or by foreclosure, levy or attachment.

7. Tax Matters; Section 83(b) Election.

     (a) If the Recipient properly elects, within thirty (30) days of the Date of Grant, to include in
gross income for federal income tax purposes an amount equal to the fair market value (as of the
Date of Grant) of the Restricted Stock pursuant to Section 83(b) of the Internal Revenue Code of
1986, as amended (the “Code”), the Recipient shall make arrangements satisfactory to the Company to
pay to the Company any federal, state or local income taxes required to be withheld with respect to
the Restricted Stock. If the Recipient shall fail to make such tax payments as are required, the
Company shall, to the extent permitted by law, have the right to deduct from any payment of any
kind (including without limitation, the withholding of
any Shares that otherwise would be issued to the Recipient under this Agreement) otherwise due
to the Recipient any federal, state or local taxes of any kind required by law to be withheld with
respect to the Restricted Stock.

4

 

     (b) If the Recipient does not properly make the election described in paragraph 7(a) above, the
Recipient shall, no later than the date or dates as of which the restrictions referred to in this
Agreement hereof shall lapse, pay to the Company, or make arrangements satisfactory to the
Committee for payment of, any federal, state or local taxes of any kind required by law to be
withheld with respect to the Restricted Stock (including without limitation the vesting thereof),
and the Company shall, to the extent permitted by law, have the right to deduct from any payment of
any kind (including without limitation, the withholding of any Shares that otherwise would be
distributed to the Recipient under this Agreement) otherwise due to Recipient any federal, state,
or local taxes of any kind required by law to be withheld with respect to the Restricted Stock.

     (c) The Recipient may satisfy the withholding requirements with respect to the Restricted
Stock pursuant to any one or combination of the following methods:

          (i) payment in cash; or

          (ii) if and to the extent permitted by the Committee, payment by surrendering Shares which
have a value equal to the required withholding amount or the withholding of Shares that otherwise
would be deliverable to the Recipient pursuant to this Award. The Recipient may surrender Shares
either by attestation or by delivery of a certificate or certificates for shares duly endorsed for
transfer to the Company, and if required with medallion level signature guarantee by a member firm
of a national stock exchange, by a national or state bank (or guaranteed or notarized in such other
manner as the Committee may require).

     (d) Tax consequences on the Recipient (including without limitation federal, state, local and
foreign income tax consequences) with respect to the Restricted Stock (including without limitation
the grant, vesting and/or forfeiture thereof) are the sole responsibility of the Recipient. The
Recipient shall consult with his or her own personal accountant(s) and/or tax advisor(s) regarding
these matters, the making of a Section 83(b) election, and the Recipient’s filing, withholding and
payment (or tax liability) obligations.

8. Amendment, Modification & Assignment; Non-Transferability. This Agreement may only be modified or
amended in a writing signed by the parties hereto. No promises, assurances, commitments,
agreements, undertakings or representations, whether oral, written, electronic or otherwise, and
whether express or implied, with respect to the subject matter hereof, have been made by either
party which are not set forth expressly in this Agreement. Unless otherwise consented to in
writing by the Company, in its sole discretion, this Agreement (and Recipient’s rights hereunder)
may not be assigned, and the obligations of Recipient hereunder may not be delegated, in whole or
in part. The rights and obligations created hereunder shall be binding on the Recipient and his
heirs and legal representatives and on the successors and assigns of the Company.

5

 

9. Complete Agreement. This Agreement (together with those agreements and documents expressly
referred to herein, for the purposes referred to herein) embody the complete and entire agreement
and understanding between the parties with respect to the subject matter hereof, and supersede any
and all prior promises, assurances, commitments, agreements, undertakings or representations,
whether oral, written, electronic or otherwise, and whether express or implied, which may relate to
the subject matter hereof in any way.

10. Miscellaneous.

     (a) No Right to (Continued) Employment or Service. This Agreement and the grant of Restricted
Stock hereunder shall not confer, or be construed to confer, upon the Recipient any right to
employment or service, or continued employment or service, with the Company or any Related Entity.

     (b) No Limit on Other Compensation Arrangements. Nothing contained in this Agreement shall
preclude the Company or any Related Entity from adopting or continuing in effect other or
additional compensation plans, agreements or arrangements, and any such plans, agreements and
arrangements may be either generally applicable or applicable only in specific cases or to specific
persons.

     (c) Severability. If any term or provision of this Agreement is or becomes or is deemed to be
invalid, illegal or unenforceable in any jurisdiction or under any applicable law, rule or
regulation, then such provision shall be construed or deemed amended to conform to applicable law
(or if such provision cannot be so construed or deemed amended without materially altering the
purpose or intent of this Agreement and the grant of Restricted Stock hereunder, such provision
shall be stricken as to such jurisdiction and the remainder of this Agreement and the award
hereunder shall remain in full force and effect).

     (d) No Trust or Fund Created. Neither this Agreement nor the grant of Restricted Stock hereunder
shall create or be construed to create a trust or separate fund of any kind or a fiduciary
relationship between the Company or any Related Entity and the Recipient or any other person. To
the extent that the Recipient or any other person acquires a right to receive payments from the
Company or any Related Entity pursuant to this Agreement, such right shall be no greater than the
right of any unsecured general creditor of the Company.

     (e) Law Governing. This Agreement shall be governed by and construed and enforced in accordance
with the internal laws of the State of Florida (without reference to the conflict of laws rules or
principles thereof).(h)

     (m) Interpretation. The Recipient accepts the Restricted Stock subject to all of the terms,
provisions and restrictions of this Agreement and the Plan. The undersigned Recipient hereby
accepts as binding, conclusive and final all decisions or interpretations of the Board or the
Committee upon any questions arising under this Agreement or the Plan.

     (n) Headings. Section, paragraph and other headings and captions are provided solely as a
convenience to facilitate reference. Such headings and captions shall not be deemed
in any way material or relevant to the construction, meaning or interpretation of this
Agreement or any term or provision hereof.

6

 

     (o) Notices. Any notice under this Agreement shall be in writing and shall be deemed to have been
duly given when delivered personally or when deposited in the United States mail, registered,
postage prepaid, and addressed, in the case of the Company, to the Company’s President at 2 S.
Biscayne Blvd., Suite 2900, Miami, Florida 33131, or if the Company should move its principal
office, to such principal office, and, in the case of the Recipient, to the Recipient’s last
permanent address as shown on the Company’s records, subject to the right of either party to
designate some other address at any time hereafter in a notice satisfying the requirements of this
Section.

     (p) Non-Waiver of Breach. The waiver by any party hereto of the other party’s prompt and complete
performance, or breach or violation, of any term or provision of this Agreement shall be effected
solely in a writing signed by such party, and shall not operate nor be construed as a waiver of any
subsequent breach or violation, and the waiver by any party hereto to exercise any right or remedy
which he or it may possess shall not operate nor be construed as the waiver of such right or remedy
by such party, or as a bar to the exercise of such right or remedy by such party, upon the
occurrence of any subsequent breach or violation.

     (q) Counterparts. This Agreement may be executed in two or more separate counterparts, each of
which shall be an original, and all of which together shall constitute one and the same agreement.

IN WITNESS WHEREOF, the parties hereto, intending to be legally bound, have executed this Agreement
as of the date first written above.

	 	 	 	 	 
	 	TERREMARK WORLDWIDE, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	AGREED AND ACCEPTED:

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 
	 

7

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