-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ij3BxiM3RPKmZoYd6IWashCf3wn7QC72m2xIvOKSmvQ1xN14IGfHgSafyLZFBtSC bHjilrpLefD7AU9OPvr+fA== 0000950124-04-004702.txt : 20041006 0000950124-04-004702.hdr.sgml : 20041006 20041006163411 ACCESSION NUMBER: 0000950124-04-004702 CONFORMED SUBMISSION TYPE: S-8 PUBLIC DOCUMENT COUNT: 5 FILED AS OF DATE: 20041006 DATE AS OF CHANGE: 20041006 EFFECTIVENESS DATE: 20041006 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ALASKA COMMUNICATIONS SYSTEMS GROUP INC CENTRAL INDEX KEY: 0001089511 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813] IRS NUMBER: 522126573 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: S-8 SEC ACT: 1933 Act SEC FILE NUMBER: 333-119569 FILM NUMBER: 041068559 BUSINESS ADDRESS: STREET 1: 600 TELEPHONE AVENUE STREET 2: - CITY: ANCHORAGE STATE: AK ZIP: 99503 BUSINESS PHONE: 9072973000 MAIL ADDRESS: STREET 1: 600 TELEPHONE AVENUE STREET 2: - CITY: ANCHORAGE STATE: AK ZIP: 99503 FORMER COMPANY: FORMER CONFORMED NAME: ALEC HOLDINGS INC DATE OF NAME CHANGE: 19990624 S-8 1 v02259sv8.htm FORM S-8 sv8
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As filed with the Securities and Exchange Commission on October 6, 2004

Registration No. 333-[___]



SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM S-8

REGISTRATION STATEMENT
Under
THE SECURITIES ACT OF 1933


ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.

(Exact name of registrant as specified in its charter)
     
Delaware   52-2126573
(State or other jurisdiction of   (I.R.S. Employer
incorporation or organization)   Identification No.)

600 Telephone Avenue
Anchorage, Alaska 99503
(907) 297-3000

(Address, including zip code, and telephone number, including area code,
of registrant’s principal executive offices)


ALASKA COMMUNICATIONS SYSTEMS GROUP, INC. 1999 STOCK INCENTIVE PLAN
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC. 1999 EMPLOYEE STOCK PURCHASE PLAN
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC. 1999 NON-EMPLOYEE DIRECTOR STOCK COMPENSATION PLAN
NON-QUALIFIED STOCK OPTION AGREEMENT BETWEEN LIANE PELLETIER AND ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.

(Full titles of the plans)


Leonard A. Steinberg
Vice President, General Counsel and Corporate Secretary
Alaska Communications Systems Group, Inc.
600 Telephone Avenue
Anchorage, Alaska 99503
(907) 297-3105

(Name, address, including zip code, and telephone number, including area code, of agent for service)


Copies to:

John G. Holland, Esq.
Latham & Watkins LLP
555 Eleventh Street, N.W., Suite 1000
Washington, DC 20004
(202) 637-2200

 


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CALCULATION OF REGISTRATION FEE

                                             
 
                  Proposed Maximum     Proposed Maximum        
  Title of Each Class of Securities To     Amount To Be     Offering Price Per     Aggregate        
  Be Registered     Registered(1)     Share(2)     Offering Price     Amount Of Registration Fee  
 
Common Stock, par value $0.01 per share
      3,000,000       $ 5.61       $ 16,815,000       $ 2,130.46    
 
 
      1,000,000       $ 4.50         4,500,000         570.15    
 
 
      4,000,000                 $ 21,315,000       $ 2,700.61    
 

(1)   Represents (a) 2,250,000 additional shares of common stock, par value $.01 per share (“Common Stock”) of Alaska Communications Systems Group, Inc. (the “Company”) under the 1999 Stock Incentive Plan, (b) 550,000 additional shares of Common Stock under the 1999 Employee Stock Purchase Plan, (c) 200,000 additional shares of Common Stock under the 1999 Non-Employee Director Stock Compensation Plan and (d) 1,000,000 shares of Common Stock granted pursuant to the Amended and Restated Executive Employment Agreement between Alaska Communications Systems Group, Inc. and Liane Pelletier and the Non-Qualified Stock Option Agreement entered into between Alaska Communications Systems Group, Inc. and Liane Pelletier (collectively, the “Plans”). On December 3, 1999, the Company filed a registration statement on Form S-8 (Registration No. 333-92091) with respect to 6,021,489 shares of Common Stock issuable under the Plans, which was subsequently amended by Post-Effective Amendment No. 1 to Form S-8 filed on April 3, 2002 (Registration No. 333-92091), both such registration statements are incorporated herein by reference. Pursuant to Rule 416 of the Securities Act of 1933, as amended (the “Securities Act”), additional shares of Common Stock which become issuable to prevent dilution from any future stock split, stock dividend or similar transaction are also being registered.

(2)   For purposes of computing the registration fee only. Pursuant to Rule 457(h) of the Securities Act, the Proposed Maximum Offering Price Per Share is based upon: (i) in the case of shares of Common Stock which may be purchased upon exercise of outstanding options, the price at which the options may be exercised; and (ii) in the case of shares of Common Stock for which options have not been granted and the option price of which is therefore unknown, the average of the high and low trading prices ($5.61) of the Common Stock as reported by the National Association of Securities Dealers’ Automated Quotation Service on September 29, 2004, a date within five trading days prior to the filing of this registration statement.



 


TABLE OF CONTENTS

PART I
Item 1. Plan Information
Item 2. Registration Information and Employee Plan Annual Information
PART II
Item 3. Incorporation of Documents by Reference.
Item 4. Description of Securities.
Item 5. Interests of Named Experts and Counsel.
Item 6. Indemnification of Directors and Officers.
Item 7. Exemption From Registration Claimed.
Item 8. Exhibits.
Item 9. Undertakings.
SIGNATURES
INDEX TO EXHIBITS
EXHIBIT 4.1
EXHIBIT 4.3
EXHIBIT 5.1
EXHIBIT 23.1


Table of Contents

PART I

Item 1. Plan Information

          Not required to be filed with this Registration Statement.

Item 2. Registration Information and Employee Plan Annual Information

          Not required to be filed with this Registration Statement.

PART II

Item 3. Incorporation of Documents by Reference.

     The following documents, which have been filed with the Securities and Exchange Commission (the “Commission”), are hereby incorporated by reference in, and shall be deemed to be a part of, this Registration Statement:

  A.   Annual Report on Form 10-K of Alaska Communications Systems Group, Inc. for the fiscal year ended December 31, 2003;
 
  B.   Current Report on Form 8-K of Alaska Communications Systems Group, Inc. dated and filed on February 26, 2004;
 
  C.   Quarterly Report on Form 10-Q of Alaska Communications Systems Group, Inc. for the quarter ended March 31, 2004;
 
  D.   Current Report on Form 8-K of Alaska Communications Systems Group, Inc. dated and filed on April 29, 2004;
 
  E.   Quarterly Report on Form 10-Q of Alaska Communications Systems Group, Inc. for the quarter ended June 30, 2004;
 
  F.   Current Report on Form 8-K of Alaska Communications Systems Group, Inc. dated and filed on July 29, 2004;
 
  G.   Prospectus that was a part of the Company’s Registration Statement on Form S-1 (File No. 333-88753) filed on November 18, 1999, as amended through November 17, 1999, including the Prospectus filed pursuant to Rule 424(b) under the Securities Act of 1933, as amended (the “Securities Act”); and
 
  H.   Description of the Company’s Common Stock contained in the Registration Statement on Form 8-A filed with the Commission on November 17, 1999 pursuant to Section 12(g) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

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     All documents filed by the Company pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Exchange Act prior to the filing of a post-effective amendment which indicates that all securities offered have been sold or which deregisters all securities then remaining unsold are incorporated by reference in this Registration Statement. Any statement contained in a document incorporated or deemed to be incorporated by reference herein shall be deemed to be modified or superseded for purposes of this Registration Statement to the extent that a statement contained herein, or in any subsequently filed document which also is or is deemed to be incorporated by reference herein, modifies or supersedes such statement. Any such statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute part of this Registration Statement.

Item 4. Description of Securities.

     Not Applicable.

Item 5. Interests of Named Experts and Counsel.

     Not Applicable.

Item 6. Indemnification of Directors and Officers.

     Section 145 of the General Corporation Law of Delaware (“DGCL”) provides that a corporation may indemnify its directors and officers against civil and criminal liabilities. Directors and officers may be indemnified against expenses if they acted in good faith an in a manner reasonably believed to be in or not opposed to the best interests of the corporation and, with respect to any criminal action, if they had no reasonable cause to believe their conduct was unlawful. A director or officer may be indemnified against expenses incurred in connection with a derivative suit if he acted in good faith and in a manner reasonably believed to be in or not opposed to the best interests of the corporation, except that no indemnification may be made without court approval if such person was adjudged liable for negligence or misconduct in the performance of his or her duty to the corporation. The statutory indemnification is not exclusive of any rights provided by and by-law, agreement, vote of shareholders or disinterested directors or otherwise.

     Our amended and restated certificate of incorporation includes a provision that eliminates the personal liability of directors for monetary damages for actions taken as a director, except for liability:

    for breach of duty of loyalty;

    for acts or omissions not in good faith or involving intentional misconduct or knowing violation of law;

    under Section 174 of the DGCL (unlawful dividends or stock repurchases); or

    for transactions from which the director derived improper personal benefit.

     Our amended and restated certificate of incorporation provides that we must indemnify and advance expenses to our directors and officers to the fullest extent authorized by the DGCL. We are also expressly authorized to, and do, carry directors’ and officers’ insurance for our directors, officers and certain employees for some liabilities. We believe that these

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indemnification provisions and insurance are useful to attract and retain qualified directors and executive officers.

     The limitation of liability and indemnification provisions in our amended and restated certificate of incorporation may discourage stockholders from bringing a lawsuit against directors for breach of their fiduciary duty. These provisions may also have the effect of reducing the likelihood of derivative litigation against directors and officers, even though such an action, if successful, might otherwise benefit us and our stockholders. In addition, your investment may be adversely affected to the extent that, in a class action or direct suit, we pay the costs of settlement and damage awards against directors and officers pursuant to these indemnification provisions.

     There is currently no pending material litigation or proceeding involving any of our directors, officers or employees for which indemnification is sought.

Item 7. Exemption From Registration Claimed.

          Not Applicable.

Item 8. Exhibits.

     A list of exhibits included as part of this Registration Statement is set forth on the Exhibit Index and is incorporated herein by reference.

Item 9. Undertakings.

(a)   The undersigned registrant hereby undertakes:

  (1)   To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:

  i)   To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;

  ii)   To reflect in the prospectus any facts or events arising after the effective date of this Registration Statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the Registration Statement. Notwithstanding the foregoing, any increase or decrease in the volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20 percent change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement;

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  iii)   To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement;

provided, however, that paragraphs (a)(1)(i) and (a)(1)(ii) do not apply if the registration statement is on Form S-3, Form S-8 or Form F-3, and the information required to be included as a post-effective amendment by those paragraphs is contained in periodic reports filed with or furnished to the Commission by the registrant pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration statement.

  (2)   That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

  (3)   To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.

(b)   The undersigned Registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing of the registrant’s annual report pursuant to section 13(a) or 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan’s annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

(c)   Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

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SIGNATURES

     Pursuant to the requirements of the Securities Act, the Registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-8 and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Anchorage, State of Alaska, on this 6th day of October, 2004.
         
  ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
 
 
  By:   /s/ David Wilson    
    Name:   David Wilson   
    Title:   Senior Vice President,
Chief Financial Officer and Treasurer
(Principal Financial Officer and Principal Accounting Officer) 
 
 

 


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POWER OF ATTORNEY

     Each of the undersigned officers and directors of the Company hereby severally constitutes and appoints David Wilson and Leonard A. Steinberg as the undersigned’s true and lawful attorney-in-fact and agent, with full power of substitution and resubstitution, for the undersigned and in the undersigned’s name, place and stead, in any and all capacities (unless revoked in writing) to sign this Registration Statement on Form S-8, and any and all amendments thereto, including any post-effective amendments as well as any related registration statement (or amendment thereto) filed in reliance upon Rule 462(b) under the Securities Act, as amended, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting to such attorney-in-fact and agent full power and authority to do and perform each and every act and thing requisite or necessary to be done in connection therewith, as fully to all intents and purposes as the undersigned might and could do in person hereby ratifying and confirming all that said attorney-in-fact and agent or her substitute or substitutes, may lawfully do or cause to be done by virtue thereof.

 


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     Pursuant to the requirements of the Securities Act, this Registration Statement has been signed by the following persons in the capacities and on the date indicated.

         
Signature
  Title
  Date
/s/ Liane Pelletier

Liane Pelletier
  Chairman of the Board,
Chief Executive Officer
and President
(Principal Executive
Officer)
  October 6, 2004
/s/ David Wilson

David Wilson
  Senior Vice President,
Chief Financial Officer
and Treasurer
(Principal Financial
Officer and Principal
Accounting Officer)
  October 6, 2004
/s/ W. Dexter Paine, III

W. Dexter Paine, III
  Director   October 6, 2004
/s/ Saul A. Fox

Saul A. Fox
  Director   October 6, 2004
/s/ Byron A. Mallott

Byron A. Mallott
  Director   October 6, 2004
/s/ Wray T. Thorn

Wray T. Thorn
  Director   October 6, 2004
/s/ Brian Rogers

Brian Rogers
  Director   October 6, 2004
/s/ Charles P. Sitkin

Charles P. Sitkin
  Director   October 6, 2004
/s/ John M. Egan

John M. Egan
  Director   October 6, 2004
/s/ Patrick Pichette

Patrick Pichette
  Director   October 6, 2004

 


Table of Contents

INDEX TO EXHIBITS

     
EXHIBIT
  DESCRIPTION
4.1
  Amendment to Alaska Communications Systems Group, Inc. 1999 Stock Incentive Plan, Alaska Communications Systems Group, Inc. 1999 Employee Stock Purchase Plan and Alaska Communications Systems Group, Inc. 1999 Non-Employee Director Stock Compensation Plan, dated October 6, 2004
4.2
  Executive Employment Agreement between Alaska Communications Systems Group, Inc. and Liane Pelletier (incorporated herein by reference to Exhibit 10.3 to the Company’s filing with the Commission on Form S-4 filed on October 23, 2003).
4.3
  Non-Qualified Stock Option Agreement between Alaska Communications Systems Group, Inc. and Liane Pelletier
5.1
  Opinion of Latham & Watkins LLP re: the shares issued under the Plans
23.1
  Consent of Deloitte Touche LLP.
24.1
  Powers of Attorney (included on the signature pages to this Registration Statement).

 

EX-4.1 2 v02259exv4w1.txt EXHIBIT 4.1 Exhibit 4.1 AMENDMENT TO ALASKA COMMUNICATIONS SYSTEMS GROUP, INC. 1999 STOCK INCENTIVE PLAN, ALASKA COMMUNICATIONS SYSTEMS GROUP, INC. 1999 EMPLOYEE STOCK PURCHASE PLAN AND ALASKA COMMUNICATIONS SYSTEMS GROUP, INC. 1999 NON-EMPLOYEE DIRECTOR STOCK COMPENSATION PLAN The Alaska Communications Systems Group, Inc. 1999 Stock Incentive Plan (the "Stock Incentive Plan"), Alaska Communications Systems Group, Inc. 1999 Employee Stock Purchase Plan (the "ESPP") and Alaska Communications Systems Group, Inc. 1999 Non-Employee Director Stock Compensation Plan ("Director Plan" and together with the Stock Incentive Plan and the ESPP, the "Plans") are hereby amended as follows, effective October 6, 2004: WHEREAS, pursuant to Article XII of the Stock Incentive Plan, the Board has authority to amend the Stock Incentive Plan; WHEREAS, pursuant to Section 22 of the ESPP, the Board has authority to amend the ESPP; WHEREAS, pursuant to Section 9 of the Director Plan, the Board has authority to amend the Director Plan; WHEREAS, by resolution of the Alaska Communications Systems Group, Inc. Board of Directors dated January 29, 2004, the Compensation and Personnel Committee have the full authority of the Board with regards to all matters concerning compensation and personnel and that the Board specifically authorized the Compensation and Personnel Committee to exercise the Board's authority with respect to the administration of compensation, incentive-compensation, benefits and equity based plans, and the authority to grant awards to Company officers; WHEREAS, the Executive Committee recommended for shareholder vote that the Plans be supplemented by 3,000,000 shares; WHEREAS, the shareholders voted on and passed the proposal to increase the number of shares of the Company's common stock reserved for future issuance under the Plans by 3,000,000 shares, to be allocated as follows: 2,250,000 shares for the Stock Incentive Plan; 550,000 shares for the ESPP; and 200,000 shares for the Director Plan; and NOW THEREFORE, the following provisions of the Plans shall be amended. 1. Pursuant Article XII of the Stock Incentive Plan, Article IV is amended to replace the first paragraph of Article IV with the following language: "As approved by a vote of the Company's Stockholders at the annual meeting held on July 27, 2004, 2,250,000 additional shares were reserved for issuance under this Plan, bringing the maximum number of shares of Common Stock that may be delivered to Eligible Individuals and their beneficiaries to 7,160,486." 2. Pursuant to Section 22 of the ESPP, Section 2 is amended to replace the first sentence of Section 2 of the ESPP with the following language: "As approved by a vote of the Company's Stockholders at the annual meeting held on July 27, 2004, 550,000 additional shares were reserved for issuance under this Plan, bringing the total shares of Common Stock reserved for issuance under the Plan to 1,550,000." 3. Pursuant to Section 9 of the Director Plan, Section 4 is amended to read in its entirety as follows: "As approved by a vote of the Company's Stockholders at the annual meeting held on July 27, 2004, 200,000 additional shares were reserved for issuance under this Plan, bringing the total shares of Common Stock reserved for issuance under the Plan to 350,000, subject to adjustment pursuant to Section 12 hereunder. The shares issued under the Plan may be authorized and unissued shares or may be treasury shares or both." The foregoing amendments to the Plans are hereby executed at the direction of the Compensation and Personnel Committee as of October 6, 2004. EX-4.3 3 v02259exv4w3.txt EXHIBIT 4.3 Exhibit 4.3 NON-QUALIFIED STOCK OPTION AGREEMENT OF ALASKA COMMUNICATIONS SYSTEMS GROUP, INC. THIS AGREEMENT (the "Agreement"), dated as of October 6, 2003, is made by and among Alaska Communications Systems Group, Inc., a Delaware corporation (the "Company"), and Liane Pelletier, the President and Chief Executive Officer of the Company, hereinafter referred to as the "Optionee." WHEREAS, the Company wishes to afford the Optionee the opportunity to purchase shares of its common stock, par value $0.01 per share ("Common Stock"); WHEREAS, the Board of Directors of the Company (the "Board") has determined that it would be to the advantage and in the best interest of the Company and its stockholders to grant the Non-Qualified Stock Option provided for herein to the Optionee as an inducement to enter into or remain in the service of the Company and as an incentive for increased efforts during such service, and has advised the Company thereof and instructed the undersigned officers to issue said Option; and WHEREAS, the Board has determined that it is in the best interest of the Company that the Non-Qualified Stock Option provided for herein be governed solely by the terms of this Agreement and that the Non-Qualified Stock Option not be granted pursuant to the Company's 1999 Stock Incentive Plan or any other equity plan maintained by the Company. NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto do hereby agree as follows: ARTICLE I. DEFINITIONS Whenever the following terms are used in this Agreement, they shall have the meaning specified below unless the context clearly indicates to the contrary. The singular pronoun shall include the plural, where the context so indicates. Section 1.1 Acquisition "Acquisition" shall have the meaning set forth in Section 6.5. Section 1.2 Agreement "Agreement" shall have the meaning set forth in the preamble hereto. Section 1.3 Affiliate "Affiliate" shall mean, with respect to any Person, any other Person directly or indirectly controlling, controlled by, or under common control with, such Person where "control" shall have the meaning given such term under Rule 405 of the Securities Act. Section 1.4 Board "Board" shall mean the Board of Directors of the Company. Section 1.5 Cause "Cause" shall have the meaning set forth in the Employment Agreement. Section 1.6 Change in Control "Change in Control shall mean (i) the acquisition by any Person other than Fox Paine & Company, LLC, or any of its Affiliates, of a majority or more of the Company's outstanding voting securities, (ii) any sale, lease, exchange or other transfer in one transaction or a series of related transactions, other than to an entity that is majority controlled by Fox Paine & Company, LLC or any Affiliate thereof or an entity with substantially the same equity holders as immediately prior to such transfer, of all or substantially all of the assets of the Company or its operating subsidiaries, or (iii) any plan for the liquidation or dissolution of the Company. Section 1.7 Common Stock "Common Stock" shall have the meaning set forth in the preamble hereto. Section 1.8 Company "Company" shall mean Alaska Communications Systems Group, Inc., a Delaware corporation. Section 1.9 Disability "Disability" shall have the meaning set forth in the Employment Agreement. Section 1.10 Employment Agreement "Employment Agreement" shall mean that certain employment agreement dated October 6, 2003 by and between the Optionee and the Company. Section 1.11 Exchange Act "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended from time to time, and any successor thereto. Section 1.12 Exercise Price "Exercise Price" shall have the meaning set forth in Section 2.2. Section 1.13 Fair Market Value "Fair Market Value" of the Common Stock means, as of any given date, the mean between the highest and lowest reported sales prices of the Common Stock on the New York Stock Exchange, or, if not listed on such exchange, on any other national securities exchange on which the Common Stock is listed, or, if not so listed, on the Nasdaq National Market. If such sales prices are not so available, the Fair Market Value of the Common Stock shall be determined by the Committee in good faith. Section 1.14 Good Reason "Good Reason" shall have the meaning set forth in the Employment Agreement. Section 1.15 Option "Option" shall mean the Non-Qualified Stock Option to purchase Common Stock granted under this Agreement. Section 1.16 Optionee "Optionee" shall have the meaning set forth in the preamble hereto. Section 1.17 Person "Person" shall mean an individual, partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated association, joint venture, governmental authority or other entity of whatever nature. Section 1.18 Securities Act "Securities Act" shall mean the Securities Act of 1933, as amended. Section 1.19 Termination of Employment "Termination of Employment" means the termination of Optionee's employment with, or performance of services for, the Company and any of its subsidiaries or Affiliates. Temporary absences from employment because of illness, vacation or leave of absence and transfers among the Company and its Subsidiaries and Affiliates shall not be considered Terminations of Employment. For purposes of this Agreement, the Optionee's employment shall be deemed to have terminated at the close of business on the day preceding the first date on which she is no longer for any reason whatsoever employed by the Company or any of its Subsidiaries or Affiliates. ARTICLE II. GRANT OF OPTION Section 2.1 Grant of Option In consideration of the Optionee's agreement to provide continued service as an employee of the Company and for other good and valuable consideration, on the date hereof the Company irrevocably grants to the Optionee pursuant to the terms and conditions set forth in this Agreement an Option to purchase any part or all of an aggregate of 1,000,000 shares of Common Stock. Section 2.2 Exercise Price The exercise price (the "Exercise Price") of the shares of Common Stock covered by the Option shall be $4.50 per share (without commission or other charge). ARTICLE III. EXERCISABILITY Section 3.1 Commencement of Exercisability (a) Subject to subsection (c) and Section 3.3, 100% of the Option shall become exercisable in five equal and cumulative installments as set forth below; (i) The first installment shall consist of 20% of the shares covered by such Option and shall become vested and exercisable on October 6, 2004; (ii) The second installment shall consist of 20% of the shares covered by such Option and shall become vested and exercisable on October 6, 2005; (iii) The third installment shall consist of 20% of the shares covered by such Option and shall become vested and exercisable on October 6, 2006; (iv) The fourth installment shall consist of 20% of the shares covered by such Option and shall become vested and exercisable on October 6, 2007; and (v) The fifth installment shall consist of 20% of the shares covered by such Option and shall become vested and exercisable on October 6, 2008. (b) Notwithstanding the foregoing provisions of this Section 3.1, upon the occurrence of a Change in Control, the unvested portion of the Option shall, immediately prior to the effective date of such Change in Control, automatically become exercisable in full. (c) No portion of the Option which is not vested and exercisable at a Termination of Employment shall thereafter become vested and exercisable. Section 3.2 Duration of Exercisability The installments provided for in Section 3.1 are cumulative. Each such installment which becomes exercisable pursuant to Section 3.1 shall remain exercisable until it expires pursuant to Section 3.3. Section 3.3 Expiration of Option The Option may not be exercised and shall be forfeited after the first to occur of the following events: (a) The expiration of ten years from the date the Option was granted; (b) Except as the Board may otherwise approve, a Termination of Employment by the Company for Cause or by the Optionee for Good Reason; (c) Except as the Board may otherwise approve, the occurrence of a Change in Control, provided that any portion of the Option, which is exercisable as a result of the occurrence of the Change in Control, may be exercise concurrently therewith. (d) Unless otherwise determined by the Board or as set forth in an Award Agreement, if Optionee incurs a Termination of Employment by reason of death, any Option held by Optionee may thereafter be exercised, to the extent then exercisable, or on such accelerated basis as the Committee may determine, for a period of one year. (e) Unless otherwise determined by the Board or as set forth in an Award Agreement, if Optionee incurs a Termination of Employment by reason of Disability or retirement, any Option held by Optionee may thereafter be exercised by Optionee, to the extent it was exercisable at the time of termination, or on such accelerated basis as the Board may determine, for a period of one year from the date of such Termination of Employment; provided however, that if the Optionee dies within such period, any unexercised Option held by Optionee shall, notwithstanding the expiration of such period, continue to be exercisable to the extent to which it was exercisable at the time of death for a period of 12 months from the date of such death. (f) Unless otherwise determined by the Board: (a) if there is a Termination of Employment for any reason other than death, Disability or retirement, any Option held by Optionee, to the extent it was then exercisable at the time of termination, or on such accelerated basis as the Board may determine, may be exercised for the lesser of three months from the date of such Termination of Employment or the balance of such Option's term; provided however, that if the Optionee dies within such three-month period, any unexercised Option held by Optionee shall, notwithstanding the expiration of such three-month period, continue to be exercisable to the extent to which it was exercisable at the time of death for a period of 12 months from the date of such death. Section 3.4 Partial Exercise Any exercisable portion of the Option or the entire Option, if then wholly exercisable, may be exercised in whole or in part at any time prior to the time when the Option or portion thereof becomes unexercisable; provided, however, that each partial exercise shall be for not less than 100 shares and shall be for whole shares only. ARTICLE IV. EXERCISE OF OPTIONS Section 4.1 Manner of Exercise Any exercisable portion of the Option or the entire Option, if wholly exercisable, may be exercised solely by delivery to the Secretary of the Company of all of the following prior to the time when the Option or such portion expires pursuant to Section 3.3 of this Agreement: (a) Notice in writing signed by the Optionee, stating that the Option or a portion is exercised, and specifically stating the number of shares with respect to which the Option is being exercised; (b) Full payment (in cash or by personal, certified, or bank cashier check) for the shares with respect to which the Option or portion is thereby exercised; or (i) With the consent of the Board, (A) shares of Common Stock owned by the Optionee for a period of at least six months duly endorsed for transfer to the Company; or (B) shares of Common Stock issuable to the Optionee upon exercise of the Option, with a Fair Market Value on the date of exercise equal to the aggregate Option price of the shares with respect to which such Option or portion is thereby exercised; or (ii) With the consent of the Board, any combination of the consideration listed in this subsection (c); (c) The payment to the Company (in cash or by personal, certified or bank cashier or by any other means of payment approved by the Board) of all amounts necessary to satisfy any and all federal, state and local tax withholding requirements arising in connection with the exercise of the Option; and (d) Such representations and documents as the Board deems necessary or advisable to effect compliance with all applicable provisions of the Securities Act and any other federal or state securities laws or regulations. The Board may, in its sole discretion, also take whatever additional actions it deems appropriate to effect such compliance including, without limitation, placing legends on share certificates and issuing stop-transfer orders to transfer agents and registrars. (e) In the event that the Option or portion thereof shall be exercised pursuant to Section 5.1 by any person other than the Optionee, appropriate proof of the right of such person to exercise the Option or portion thereof. Section 4.2 Rights as Stockholders The Optionee shall not be, nor have any of the rights or privileges of, a stockholder of the Company in respect of any shares purchasable upon the exercise of any part of an Option unless and until certificates representing such shares have been issued by the Company to such holder. ARTICLE V. TRANSFERABILITY Section 5.1 Non Transferability of Option No portion of the Option shall be transferable by the Optionee other than (a) by will or by the laws of descent and distribution; (b) or as expressly permitted by the Board including pursuant to a transfer to such optionee's immediate family, whether directly or indirectly or by means of a trust or partnership or otherwise. For purposes of this Agreement, unless otherwise determined by the Board, "immediate family" shall mean, any child, sibling, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, sister-in-law or brother-in-law, including adoptive relationships, of the Optionee. The Option shall be exercisable, subject to the terms of this Agreement, only by the Optionee, the guardian or legal representative of the optionee, or any person to whom such option is transferred pursuant to this paragraph, it being understood that the terms "holder" and "optionee" include such guardian, legal representative and other transferee. ARTICLE VI. OTHER PROVISIONS Section 6.1 Not a Contract of Employment Nothing in this Agreement shall confer upon the Optionee any right to continue to serve as an employee or shall interfere with or restrict in any way the rights of the Company, which are hereby expressly reserved, to terminate the Employment Agreement pursuant to its terms. Section 6.2 Conformity to Securities Laws The Optionee acknowledges that this Agreement is intended to conform to the extent necessary with all provisions of the Securities Act and the Exchange Act and any and all regulations and rules promulgated thereunder by the Securities and Exchange Commission, including without limitation Rule 16b-3. Notwithstanding anything herein to the contrary, the Option is granted and may be exercised only in such a manner as to conform to such laws, rules and regulations. To the extent permitted by applicable law, this Agreement shall be deemed amended to the extent necessary to conform to such laws, rules and regulations. Section 6.3 Adjustments upon Changes in Shares of Common Stock [On the occurrence of any of the following events, the Board may, in its discretion, make the following adjustments: (a) In case the number of outstanding shares of Common Stock may be increased at any time or from time to time by way of a stock dividend, stock split, recapitalization, or subdivision of or affecting the outstanding Common Stock (i) the number of shares of Common Stock subject to the Option shall be increased correspondingly and (ii) the per share Exercise Price shall be proportionately decreased. (b) In case the number of outstanding shares of Common Stock may be reduced at any time or from time to time by reverse stock split, combination or recapitalization (i) the number of shares of Common Stock subject to the Option shall be proportionately reduced and (ii) the per share Exercise Price shall be proportionately increased. (c) In the event that the outstanding shares of Common Stock are changed into or exchanged for a different number or kind of shares of Common Stock or other securities of the Company or of another entity or any other property (including without limitation, cash), whether through reorganization, merger, recapitalization, split, reverse split, merger, consolidation, sale of assets or otherwise, then the term "Common Stock" shall thereafter refer under this Agreement to the share of stock or other securities or property into which each outstanding share of Common Stock shall be so changed or for which each such share of Common Stock shall be exchanged and the number of shares of Common Stock subject to the Option shall be correspondingly increased or decreased.] Section 6.4 Amendments The Board may amend or alter the terms of this Agreement, but no amendment or alteration shall be made which would impair the rights granted to the option holder without the option holder's consent. Section 6.5 Successors (a) This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns. (b) The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise (an "Acquisition")) to all or substantially all of the business and/or assets of the Company expressly to assume and to agree to perform this Agreement in the same manner and to the same extent that the Company would have been required to perform it if no such succession had taken place (or by substituting for such Options new options, based upon the stock of such successor, having an aggregate spread between the Fair Market Value of the underlying stock and the Exercise Price thereof, and the same term, immediately after such substitution, equal to the spread on, and the term of, such Options immediately before such substitution), and the Optionee hereby agrees to such assumption (or substitution); provided, however, that the Company or such successor may, at its option, at the time of or promptly after such Acquisition, terminate all of its obligations hereunder with respect to the Options by paying to the Optionee or the Optionee's successors or assigns an amount equal to the product of (i) the number of Options and (ii) the Fair Market Value per share of the shares underlying such Options at the time of such Acquisition less the amount of such Options' Exercise Price (but not in excess of such Fair Market Value per share), in either case, in exchange for the Optionee's Options. As used in this Agreement, the "Company" shall mean both the Company as defined above and any such successor that assumes and agrees to perform this Agreement, by operation of law or otherwise. Section 6.6 Miscellaneous (a) This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware, without regard to the principles of conflicts of law thereof. The captions of this Agreement are not part of the provisions hereof and shall have no force or effect. This Agreement may not be amended or modified except by a written agreement executed by the parties hereto or their respective successors and legal representatives. (b) All notices and other communications under this Agreement shall be in writing and shall be given by hand delivery to the other party or by registered or certified mail, return receipt requested, postage prepaid, addressed if to the Optionee, at the address set forth on the signature page hereto, and if to the Company: Alaska Communications Systems Group, Inc., 600 Telephone Avenue MS #65, Anchorage, Alaska 99503, or to such other addresses as either party furnishes to the other in writing in accordance with this Section 6.5. Notices and communications shall be effective when actually received by the addressee. (c) The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement. (d) No later than the date as of which an amount first becomes includible in the gross income of the Optionee for federal income tax purposes with respect to any Options, the Optionee shall pay to the Company, or if appropriate, any of its Affiliates, or make arrangements satisfactory to the Committee regarding the payment of, any federal, state, local or foreign taxes of any kind required by law to be withheld with respect to such amount. If approved by the Committee, withholding obligations may be settled with Common Stock, including Common Stock that is part of the Award that gives rise to the withholding requirement. The obligations of the Company under the Plan shall be conditional on such payment or arrangements, and the Company and its Affiliates shall, to the extent permitted by law, have the right to deduct any such taxes from any payment otherwise due to the Optionee. The Committee may establish such procedures as it deems appropriate, including making irrevocable elections, for the settlement of withholding obligations with Common Stock. (e) The Optionee's or the Company's failure to insist upon strict compliance with any provision of, or to assert any right under, this Agreement shall not be deemed to be a waiver of such provision or right or of any other provision of or right under this Agreement. (f) The Optionee and the Company each acknowledges that this Agreement (together with the other agreements referred to herein and therein) constitutes the entire agreement and supersedes all other agreements and understandings, both written and oral, among the parties or either of them, with respect to the subject matter hereof. [Signature Pages Follow] IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties hereto. ALASKA COMMUNICATIONS SYSTEMS GROUP, INC. By: /s/ Leonard Steinberg --------------------------------- Name: Leonard Steinberg Title: General Counsel and Corporate Secretary /s/ Liane Pelletier - --------------------------------- Liane Pelletier Optionee - ------------------------------------ - ------------------------------------ Address Optionee's Taxpayer Identification Number: (Redacted) ---------------------- EX-5.1 4 v02259exv5w1.txt EXHIBIT 5.1 Exhibit 5.1 October 6, 2004 Alaska Communications Systems Group, Inc. 600 Telephone Avenue Anchorage, Alaska 99503 Re: Registration Statement on Form S-8 with respect to 4,000,000 shares of common stock, par value $0.01 per share Ladies and Gentlemen: In connection with the registration by Alaska Communications Systems Group, Inc., a Delaware corporation (the "Company"), of 4,000,000 shares of common stock, par value $0.01 per share (the "Shares"), of the Company, (i) 2,250,000 of which are to be issued pursuant to the Alaska Communications Systems Group, Inc. 1999 Stock Incentive Plan, as amended; (ii) 550,000 of which are to be issued pursuant to the Alaska Communications Systems Group, Inc. 1999 Employee Stock Purchase Plan, as amended; (iii) 200,000 of which are to be issued pursuant to the Alaska Communications Systems Group, Inc. 1999 Non-Employee Director Stock Compensation Plan, as amended; and (iv) 1,000,000 of which are to be issued pursuant to the Non-Qualified Stock Option Agreement between Liane Pelletier and Alaska Communications Systems Group, Inc. (collectively, the "Plans"), under the Securities Act of 1933, as amended, on a Registration Statement on Form S-8 filed with the Securities and Exchange Commission on October 6, 2004 (the "Registration Statement"), you have requested our opinion with respect to the matters set forth below. In our capacity as your special counsel in connection with such registration, we are familiar with the proceedings taken by the Company in connection with the authorization, issuance and sale of the Shares. In addition, we have examined such matters of fact and questions of law as we have considered appropriate for purposes of this letter In our examination, we have assumed the genuineness of all signatures, the authenticity of all documents submitted to us as originals, and the conformity to authentic original documents of all documents submitted to us as copies. We are opining herein as to the effect on the subject transaction only of the General Corporation Law of the State of Delaware, and we express no opinion with respect to the applicability thereto or the effect thereon, of any other laws. Subject to the foregoing, it is our opinion that as of the date hereof the Shares have been duly authorized by all necessary corporate action of the Company, and, upon issuance of and payment for the Shares in accordance with the terms set forth in the Plans, the Shares will be validly issued, fully paid and nonassessable. We consent to your filing this opinion as an exhibit to the Registration Statement. Very truly yours, LATHAM & WATKINS LLP EX-23.1 5 v02259exv23w1.txt EXHIBIT 23.1 Exhibit 23.1 CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM We consent to the incorporation by reference in this Registration Statement of Alaska Communications Systems Group, Inc. on Form S-8 of our report dated March 3, 2004 (which report expresses an unqualified opinion and includes an explanatory paragraph relating to the Company's adoption of Statement of Financial Accounting Standards No. 142, Goodwill and Other Intangible Assets, and Statement of Financial Accounting Standards No. 143, Accounting for Asset Retirement Obligations) appearing in the Annual Report on Form 10-K of Alaska Communications Systems Group, Inc. for the year ended December 31, 2003. DELOITTE & TOUCHE LLP Portland, Oregon October 1, 2004
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