Exhibit 10.27
SHENANDOAH TELECOMMUNICATIONS COMPANY
Incentive Stock Option Agreement
No. of shares subject to option: ____
THIS AGREEMENT dated as of the __ day of _____, 200X, between Shenandoah
Telecommunications Company, a Virginia corporation (the "Company"), and
________________ ("Participant"), is made pursuant and subject to the provisions
of the Company's Stock Incentive Plan (the "Plan"), a copy of which is attached.
All terms used herein that are defined in the Plan have the same meaning given
them in the Plan.
1. Grant of Option. Pursuant to the Plan, the Company, on ______, 200X
(the "Date of Grant"), granted to Participant, subject to the terms and
conditions of the Plan and subject further to the terms and conditions herein
set forth, the right and Option to purchase from the Company all or any part of
an aggregate of ____ shares of Common Stock at the option price of $__.__ per
share (the "Option Exercise Price"), being not less than the Fair Market Value
per share of the Common Stock on the Date of Grant. This Option is intended to
be an "incentive stock option" under Section 422 of the Code. This Option will
be exercisable as hereinafter provided.
2. TERMS and CONDITIONS. This Option is subject to the following terms and
conditions:
(a) Expiration Date. This Option shall expire at ___. on ______ the
seventh anniversary of the Date of Grant, (the "Expiration Date").
(b) Exercise of Option. Except as provided in paragraphs 3, 4, 5 or
6, this Option shall be exercisable with respect to one-fourth of
the shares of Common Stock subject to this Option on each of the
third, fourth, fifth and sixth anniversaries of the Date of Grant.
Once this Option has become exercisable in accordance with the
preceding sentence it shall continue to be exercisable until the
earlier of the termination of the Participant's rights hereunder
pursuant to paragraph 3, 4, 5 or 6, or until the Expiration Date. A
partial exercise of this Option shall not affect the Participant's
right to exercise this Option with respect to the remaining shares,
subject to the conditions of the plan and this Agreement.
(c) Method of Exercise and Payment for Shares. This Option shall be
exercised by written notice delivered to the attention of the
Company's Secretary at the Company's principal office in Edinburg,
Virginia. The exercise date shall be (i) in the case of notice by
mail, the date of postmark, or (ii) if delivered in person, the date
of delivery. Such notice shall be accompanied by payment of the
option price in full, in cash or cash equivalent acceptable to the
Administrator, by the surrender of shares of Common Stock with an
aggregate Fair Market Value (determined as of the day preceding the
exercise date) which, together with any cash or cash equivalent paid
by Participant, is not less than the option price of the number of
shares of Common Stock for which the Option is being exercised or by
causing the Company to withhold shares of Common Stock otherwise
issuable pursuant to the exercise of the Option with an aggregate
Fair Market Value
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(determined as of the day preceding the exercise date) equal to the
option price or portion thereof to be satisfied pursuant to this
clause.
(d) Nontransferability. This Option is nontransferable except by
will or by the laws of descent and distribution. During
Participant's lifetime, this Option may be exercised only by
Participant.
3. Exercise in the Event of Death. This Option shall be exercisable for
all or part of the number of shares of Common Stock that the Participant was
entitled to purchase pursuant to paragraph 2, reduced by the number of shares
for which the Option was previously exercised, in the event the Participant dies
while employed by the Company or an Affiliate or following Retirement or
becoming Permanently and Totally Disabled (as hereinafter defined) and prior to
the Expiration Date. In that event this Option may be exercised by Participant's
estate, or the person or persons to whom his rights under this Option shall pass
by will or the laws of descent and distribution. Participant's estate or such
persons may exercise this Option during the remainder of the period preceding
the Expiration Date.
4. Exercise in the Event of Disability. This Option shall be exercisable
for all or part of the number of shares of Common Stock that the Participant was
entitled to purchase pursuant to paragraph 2, reduced by the number of shares
for which the Option was previously exercised, if the Participant becomes
permanently and totally disabled within the meaning of section 22(e)(3) of the
Code ("Permanently and Totally Disabled") while employed by the Company or an
Affiliate and prior to the Expiration Date. In that event, the Participant may
exercise this Option during the remainder of the period preceding the Expiration
Date.
5. Exercise After Retirement. This Option shall be exercisable for all or
part of the number of shares that the Participant was entitled to purchase
pursuant to paragraph 2, reduced by the number of shares for which the Option
was exercised, in the event of the Participant's Retirement prior to the
Expiration Date. In that event the Participant may exercise this Option during
the remainder of the period preceding the Expiration Date.
6. Exercise After Termination of Employment. This Option may not be
exercised after the Participant ceases to be employed by the Company and its
Affiliates, except if such termination of employment is a result of death,
disability or Retirement, in which case the Option may be exercised as provided
in paragraphs 3, 4 or 5, respectively.
7. Retirement. For purposes of this Agreement, the term "Retirement" means
the voluntary termination of employment on or after the Participant's earliest
Retirement date under a tax-qualified retirement plan maintained by the Company
or an Affiliate in which the Participant participates.
8. Minimum Exercise. This Option may not be exercised for less than five
shares of Common Stock unless it is exercised for the full number of shares for
which the Option may be exercised.
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9. Fractional Shares. Fractional shares shall not be issuable hereunder,
and when any provision hereof may entitle Participant to a fractional share such
fraction shall be disregarded.
10. No Right to Continued Employment. This Option does not confer upon
Participant any right with respect to continuance of employment by the Company
or an Affiliate, nor shall it interfere in any way with the right of the Company
or an Affiliate to terminate his employment at any time.
11. Change in Capital Structure. The terms of this Option shall be
adjusted as the Committee determines is equitably required in the event the
Company effects one or more stock dividends, stock split-ups, subdivisions or
consolidations of shares or other similar changes in capitalization.
12. Governing Law. This Agreement shall be governed by the laws of the
Commonwealth of Virginia.
13. Conflicts. In the event of any conflict between the provisions of the
Plan as in effect on the date hereof and the provisions of this Agreement, the
provisions of the Plan shall govern. All references herein to the Plan shall
mean the Plan as in effect on the date hereof.
14. Participant Bound by Plan. Participant hereby acknowledges receipt of
a copy of the Plan and agrees to be bound by all the terms and provisions
thereof.
15. Binding Effect. Subject to the limitations stated above and in the
Plan, this Agreement shall be binding upon and inure to the benefit of the
legatees, distributees, and personal representatives of Participant and the
successors of the Company.
16. Notification Upon Sale. Participant shall give written notice to the
company's Secretary at the Company's principal office in Edinburg, Virginia if
the Participant sells or otherwise disposes of any shares acquired under this
Option before the expiration of the two-year period beginning on the Date of
Grant or the one-year period beginning on the date that the Participant
exercised this Option with respect to such shares.
IN WITNESS WHEREOF, the company has caused this Agreement to be signed by
a duly authorized officer, and Participant has affixed his signature hereto.
SHENANDOAH TELECOMMUNICATIONS
COMPANY
By
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Christopher E. French Participant
President