Document:

Exhibit 10.3

 

SUBSCRIPTION AND INVESTMENT REPRESENTATION AGREEMENT

 

INTAC International, Inc.

Unit 6-7,
32/F., Laws Commercial Plaza

788 Cheung Sha
Wan Road

Kowloon, Hong Kong

 

Attention:  Wei Zhou, Chief Executive Officer
 
Dear Mr. Zhou:

 

This Subscription and Investment Representation Agreement (this “Agreement”) is entered into as of the date set forth on the signature page hereof by and between INTAC International, Inc., a Nevada corporation (together with its successors and permitted assigns, the “Company”), and the undersigned accredited investor (together with its successors and permitted assigns, the “Investor”).
 
The Investor desires to purchase from the Company and the Company desires to sell to the Investor, on the terms and conditions set forth in this Agreement, eight hundred thousand (800,000) shares of the common stock, $.001 par value per share (the “Common Stock”), of the Company.
 
On the terms and conditions of this Subscription and Investment Representation Agreement (the “Agreement”), the Investor proposes to make an investment in the Company as follows:
 
1.  Subscription.   Subject to the terms and conditions hereof, Investor hereby irrevocably subscribes to purchase eight hundred thousand (800,000) shares (the “Shares”) of Common Stock of the Company at a price of U.S.$15.00 per share.  In so doing, Investor is hereby delivering to the Company, for the Company’s benefit, a check, draft, money order or wire transfer payable to the order of “INTAC International, Inc.” in the amount of U.S.$12,000,000.00, the aggregate purchase price payable in respect of the purchase of the Shares.  The Company will deliver a stock certificate representing the Shares purchased by the Investor within ten business days after receipt of the purchase price.
 
2.  Representations and Warranties of the Company.  The Company represents and warrants to the Investor as follows:
 
(a)  The Company is a corporation duly organized and validly existing under the laws of the State of Nevada.
 
(b)  As of the date hereof, the entire authorized capital stock of the Company consists of (1) One Hundred Million (100,000,000) shares of Common Stock, of which Twenty Million One Hundred Eighty-Nine Thousand Four Hundred and Fifty-Five (20,189,455) shares are issued and outstanding on the date hereof prior to the offering made hereby, and (2) Ten Million

 

 

(10,000,000) shares of Preferred Stock, of which no shares are issued and outstanding on the date hereof.  All of the issued and outstanding shares are duly authorized, validly issued, fully paid, and nonassessable. The Shares to be issued to the Investor in the offering will be, when issued and paid for in accordance with the terms of this Agreement, validly issued, fully paid and nonassessable.
 
(c)  The Company has full corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder.  This Agreement constitutes a valid and legally binding obligation of the Company, enforceable in accordance with its terms and conditions.
 
3.  Representations and Warranties of Investor.  Investor hereby represents and warrants to the Company as follows:
 
(a)  The offer and sale of the Shares to Investor is made in reliance upon Investor’s representation to the Company, which, by Investor’s execution of this Agreement, Investor hereby confirms, that the Shares are being acquired for investment for Investor’s own account, not as a nominee or agent, and not with a view to the sale or distribution of any part thereof, and that Investor has no present intention of selling, granting any participation in, or otherwise distributing the same.  By executing this Agreement, Investor further represents that Investor has no contract, undertaking, agreement or arrangement with any person to sell, transfer, or grant participation rights to such person or to any third person, with respect to any of the Shares and has no present intention to enter into any such contract, undertaking, agreement or arrangement.
 
(b)  Investor understands and acknowledges that the Offering of the Shares has not and will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), on the grounds that the offering and sale of the Shares are exempt from registration pursuant to the provisions of Section 4(2) and/or Rule 506 of Regulation D of the Securities Act, and that the Company’s reliance upon such exemption is, in part, predicated upon Investor’s representations set forth in this Agreement.
 
(c)  Investor covenants that in no event will Investor dispose of any of the Shares, or any part thereof, unless and until (i) there is an effective Registration Statement under the Securities Act covering the proposed disposition and such disposition is made in accordance with such Registration Statement, and (ii) Investor shall have notified the Company of the proposed disposition and shall have furnished the Company with a statement of the circumstances surrounding the proposed disposition, and, if reasonably requested by the Company, Investor shall have furnished the Company with an opinion of counsel satisfactory in form and substance to the Company and the Company’s counsel to the effect that (A) such disposition will not require registration under the Securities Act and (B) appropriate action necessary for compliance with the Securities Act and any applicable state, local or foreign law has been taken. In addition, the Investor agrees that the Investor will comply with the contractual lock-up period imposed upon Investor under this Agreement.
 
(d)  Investor represents that Investor (i) has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of Investor’s prospective

 

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investment in the Shares; (ii) has received from the Company all the information he has requested and considers necessary or appropriate for deciding whether to purchase the Shares; (iii) has had an opportunity to ask questions and receive answers from the Company regarding the Company, its business, operations, market potential, capitalization, financial condition and prospects, and the terms and conditions of the offering of the Shares; (iv) has the ability to bear the economic risks of Investor’s prospective investment; and (v) is able, without materially impairing his financial condition, to hold the Shares for an indefinite period of time and to suffer complete loss on his investment.
 
(e)  Investor represents that he is a bona fide resident of the state or country indicated herein, and if Investor is an individual, Investor is at least 21 years of age. Investor further represents that he has no present intention of becoming a resident of any other state or jurisdiction.
 
(f)  If Investor’s purchase of the Shares is subject to regulation by the government of a sovereign jurisdiction other than the United States, Investor has complied with all laws and regulations governing the purchase and sale of the Shares imposed by such sovereign jurisdiction.
 
(g)  Investor has received and read or reviewed, and is thoroughly familiar with, the Company’s filings with the Securities and Exchange Commission (the “SEC Filings”), particularly the information set forth under the captions “Business Risk Factors” and “Cautionary Statement Regarding Forward-Looking Statements” found in the Company’s Annual Report on Form 10-KSB for the year ended December 31, 2003 and Investor is aware of the high degree of risk involved in making an investment in the Company; it being understood, however, that this representation does not constitute a waiver of any rights that Investor has under the Securities Act, any applicable state securities act or the rules and regulations promulgated thereunder.
 
(h)  Investor has had the opportunity to review, at the Company’s offices or otherwise, any materials available to the Company relating to the Company or any other matters or items discussed in or accompanying the SEC Filings.  The Company has answered all inquiries from Investor, and given Investor the opportunity to obtain any additional information (to the extent the Company possessed such information or could acquire it without unreasonable effort or expense) requested by the Investor necessary to verify the accuracy of any information set forth in this Agreement, the SEC Filings, or otherwise.
 
(i)  Investor understands that he is purchasing the Shares only in reliance upon the information set forth in this Agreement.  Investor acknowledges that, except as set forth in this Agreement, no representations or warranties have been made to Investor or the Investor’s advisors by the Company or by any persons acting on their behalf with respect to the business of the Company, the financial condition of the Company or any other aspect of or related to a purchase of the Shares, and that Investor has not relied upon any information concerning this transaction, written or oral.
 
(j)  Investor acknowledges and is aware of the following:

 

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(i)  The Shares are a highly speculative investment that involves a substantial risk of loss by Investor of his entire investment in the Company.
 
(ii) There are substantial restrictions on the transferability of the Shares.  The Shares will only be registered under the Securities Act only pursuant to the terms and conditions of Section 8 of this Agreement; accordingly, there may be no public market for the Shares; Investor may not be able to avail himself of the provisions of Rule 144 under the Securities Act with respect to the resale of the Shares; and the Investor may have to hold the Shares indefinitely and may not be able to liquidate his investment in the Company.
 
(iii)     No federal or state agency has made any finding or determination as to the fairness of the offering of the Shares for investment or any recommendation or endorsement of the Shares.
 
(iv) The Company, its officers, directors, agents or employees or any other person, have not represented, guaranteed or warranted to Investor, expressly or by implication, any of the following:
 
*    the approximate or exact length of time that Investor will be required to remain an owner of the Shares;
 
*    the amount of or type of consideration, profit or loss to be realized, if any, as a result of an investment in the Company; or
 
*    the likelihood that the Company’s business plan will succeed.
 
(k)  Investor has neither distributed nor disclosed, directly or indirectly, any of the Company’s confidential information, including, without limitation, the information contained in any contract or agreement to which the Company is a party, to anyone other than his legal, tax, accounting or other advisors for their use solely in that capacity for Investor, and no one other than the undersigned and his legal, tax, accounting or other advisors, if any, has used the confidential information.
 
(l)  Investor represents and warrants to the Company that he is an “accredited investor” within the meaning of SEC Rule 501(a) of Regulation D, as presently in effect, under the definition set forth in the box initialed below by the Investor.
 
o  1. Any bank as defined in section 3(a)(2) of the Act, or any savings and loan association or other institution as defined in section 3(a)(5)(A) of the Act whether acting in its individual or fiduciary capacity; any broker or dealer registered pursuant to section 15 of the Securities Exchange Act of 1934; any insurance company as defined in section 2(13) of the Act; any investment company registered under the Investment Company Act of 1940 or a business development company as defined in section 2(a)(48) of that Act; any Small Business Investment Company licensed by the U.S. Small Business Administration under section 301(c) or (d) of the Small Business Investment Act of 1958; any plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for

 

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the benefit of its employees, if such plan has total assets in excess of $5,000,000; any employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974 if the investment decision is made by a plan fiduciary, as defined in section 3(21) of such act, which is either a bank, savings and loan association, insurance company, or registered investment adviser, or if the employee benefit plan has total assets in excess of $5,000,000 or, if a self-directed plan, with investment decisions made solely by persons that are accredited investors;

 

o  2. Any private business development company as defined in section 202(a)22 of the Investment Advisers Act of 1940;
 
o  3. Any organization described in section 501(c)3 of the Internal Revenue Code, corporation, Massachusetts or similar business trust, or partnership, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of $5,000,000;
 
o  4. Any director, executive officer, or general partner of the issuer of the securities being offered or sold, or any director, executive officer, or general partner of a general partner of that issuer;
 
o  5. Any natural person whose individual net worth, or joint net worth with that person’s spouse, at the time of his purchase exceeds $1,000,000;
 
o  6. Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person’s spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year;
 
o  7. Any trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii) and
 
ý  8. Any entity in which all of the equity owners are accredited investors.
 
The foregoing statements are true and accurate to the best of my information and belief, and I will promptly notify the Company of any changes.
 

(m)  At
no time was Investor presented with or solicited by any publicly issued or
circulated newspaper, mail, radio, television or other form of general
advertising or solicitation in connection with the Shares.

 

(n) In addition, Investor has been advised that Rule 144 promulgated by the SEC under the Securities Act, which permits certain limited sales of unregistered securities, may not be presently available with respect to the Shares and, in any event, requires that the Shares be held for a minimum of one (1) year, and in certain cases two (2) years, after they have been purchased and paid for (within the meaning of SEC Rule 144), before they may be resold under SEC Rule 144.

 

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(o)  Investor agrees that the Company may rely on the representations found in this Section 3.  Investor further agrees that he will furnish to the Company such further information as the Company may deem relevant in determining whether the undersigned is an “accredited investor” within the meaning of Rule 501(a) and whether the undersigned’s proposed investment may have any adverse legal effects, and the undersigned authorizes the Company and its agents to confirm, as necessary, with the undersigned’s tax adviser, investment counselor, lawyer, accountant, banker or other financial representative named below, such information as the Company may deem relevant in making such determination.
 
(p)  The foregoing representations and warranties are true and accurate as of the date hereof and shall survive the Closing of the purchase of the Shares.  If in any respect such representations and warranties shall not be true and accurate prior to the Closing Date, Investor shall give written notice of such fact to the Company, specifying which representations and warranties are not true and accurate and the reasons therefor.
 
4.   Indemnification.  Investor recognizes that the sale of the Shares to Investor will be based upon his representations and warranties set forth in Paragraph 3 hereof, and Investor agrees to indemnify and to hold harmless the Company, each of its officers and directors, and each person who controls the Company, from and against any and all loss, damage, liability or expense, including costs and reasonable attorneys’ fees, to which they may be subject or which they may incur by reason of, or in connection with, any misrepresentation made by Investor in this Agreement, any breach by Investor of his warranties or failure by Investor to fulfill any covenants or agreements set forth herein or arising out of the sale or distribution of any such shares by Investor in violation of the Securities Act or other applicable securities laws.  All representations, warranties, and covenants and the indemnification contained in this Agreement shall survive the acceptance of this subscription and the issuance to Investor of the Shares.
 
5.   Confidentiality.  Investor hereby covenants and agrees to maintain the confidential status of all Confidential Information (as defined below), and not to use, directly or indirectly, any such Confidential Information for any purpose other than to evaluate an investment in the Company, and not to disclose, directly or indirectly, any such Confidential Information to any third party.  For the purposes of this Agreement, “Confidential Information” means all business, financial, technical and other information about the Company, designated as confidential or proprietary, or information which, by the nature of the circumstances surrounding the disclosure, ought in good faith to be treated as confidential, including, without limitation, the confidential information provided to the Investor.
 
6.   Acknowledgment.  Investor acknowledges and understands that he may receive or may be provided confidential or otherwise non-public information about the Company that may constitute material, non-public information concerning the Company, and that he is obligated to refrain from (a) selling any shares of common stock beneficially owned or held by him and (b) otherwise trading in the Company’s securities, at any time during which Investor is in possession of non-public, material information concerning the Company.

 

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7.   Restrictive Legends.  Investor understands and agrees that the following restrictions and limitations are applicable to his purchase and any resale or other transfer he may make of the Shares:
 
(a)  The Shares shall not be sold or otherwise transferred unless they are registered under the Securities Act and applicable state securities laws or are exempt therefrom.
 
(b)  Legends in substantially the following form will be placed on each certificate evidencing the Shares:
 
THE SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES LAW.  THE SHARES HAVE BEEN ACQUIRED FOR PRIVATE INVESTMENT AND MAY NOT BE OFFERED FOR SALE OR SOLD IN THE ABSENCE OF  (i) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SHARES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND ANY APPLICABLE STATE SECURITIES LAWS, OR (ii) AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED. THE SHARES REPRESENTED HEREBY ARE SUBJECT TO A SUBSCRIPTION AND INVESTMENT REPRESENTATION AGREEMENT AND MAY NOT BE SOLD, PLEDGED, ENCUMBERED OR OTHERWISE TRANSFERRED OR DISPOSED OF, EXCEPT IN ACCORDANCE WITH THE TERMS THEREOF, COPIES OF WHICH ARE ON FILE AT THE PRINCIPAL OFFICE OF THE COMPANY AND WILL BE PROVIDED UPON REQUEST TO THE COMPANY.
 

8.   (a)  Registration
Rights.  As soon as practicable, but in
no event later than the forty-fifth day following the Closing Date, as such term
is defined in Section 13 of this Agreement (the “Filing Deadline”), the
Company shall prepare and file with the Securities and Exchange Commission (the
“Commission”) a Registration Statement on Form S-3 as a “shelf” registration
statement under Rule 415 under the Securities Act (“Rule 415”) covering
the resale of the Shares.

 

(b)  Effectiveness.  The Company shall use its best efforts to
cause the Registration Statement to become effective as soon as practicable
following the filing thereof.  The Company
shall respond promptly to any and all comments made by the staff of the
Commission on the Registration Statement, and shall promptly submit to the
Commission, within two (2) business days after the Company learns that no
review of the Registration Statement will be made by the staff of the
Commission or that the staff of the Commission has no further comments on the
Registration Statement, as the case may be, a request for acceleration of the
effectiveness of the Registration Statement to a time and date not later than
three (3) Business Days after the submission of such request; provided that at
any time prior to the end of the Registration Deadline, the Company may delay
its request for effectiveness for a period of up to ten days if the Company is
required to file an Exchange Act report within such ten (10) day period that
would require an amendment to the Registration Statement or a supplement to the
Prospectus to be used in connection with the Registration Statement.  The Company will maintain the

 

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effectiveness of the Registration Statement until the earlier to occur
of (i) the date on which all of the Registrable Securities eligible for resale
thereunder have been publicly sold pursuant to either the Registration
Statement or Rule 144 and (ii) the date on which all of the Registrable
Securities remaining to be sold under the Registration Statement (in the
reasonable opinion of counsel to the Holder) may be immediately sold to the
public under Rule 144 or 144(k) or any successor provision within a three month
period (the period beginning on the Closing Date and ending on the earlier to
occur of (i) or (ii) above being referred to herein as the “Registration
Period”).

 

(c)                                  Allowed Delay.  The Company may delay the disclosure of material non-public information, and suspend the availability of the Registration Statement, for no more than (i) five (5) consecutive Business Days or (ii) twenty (20) calendar days in any twelve (12) month period, in the event of a proposed merger, reorganization or similar transaction involving the Company, as long as its board of directors (A) has determined, upon the advice of counsel, that such information would be required to be disclosed in an offering registered under the Securities Act and (B) reasonably deems it in the Company’s best interests not to disclose such information publicly (an “Allowed Delay”). The Company shall promptly (i) notify each Holder in writing of the existence of material non-public information giving rise to an Allowed Delay (but in no event, without the prior written consent of such Holder, shall the Company disclose to such Holder any of the facts or circumstances regarding any material non-public information), (ii) advise each Holder in writing to cease all sales under the Registration Statement until the termination of the Allowed Delay and (iii) notify each Holder in writing immediately upon the termination or expiration of an Allowed Delay.
 
9.   No Waiver. Notwithstanding any of the representations, warranties, acknowledgments or agreements made herein by Investor, Investor does not thereby or in any other manner waive any rights granted to Investor under federal or state securities laws.
 
10.  Assignment.  Investor agrees not to transfer or assign this Agreement, or any of his interest therein.
 
11.  No Revocation.  Investor acknowledges and agrees that his subscription for Shares, made by the execution and delivery of this Agreement by Investor, is irrevocable and shall survive the death or incapacity of Investor.
 
12.  Closing.  The closing of the purchase and sale of the Shares (the “Closing”) shall take place contemporaneously with the parties’ execution of this Agreement (the “Closing Date”). Execution by the Company hereunder shall constitute its written acknowledgment of the receipt of and payment for the full purchase price for the Shares.
 
13.  Miscellaneous.
 
(a)  All notices or other communications to the Company given or made hereunder shall be in writing and shall be delivered or mailed by registered or certified mail, return receipt requested, postage prepaid, to Chief Executive Officer, INTAC International, Inc., Unit 6-7, 32/F., Laws Commercial Plaza, 788 Cheung Sha Wan Road, Kowloon, Hong Kong, with a copy to the Chief Financial Officer, 12221 Merit Drive, Suite 1350, Dallas, Texas  75251, or such

 

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other principal executive offices of the Company as shall then be in existence.  All notices or other communications to the Investor given or made hereunder shall be in writing and shall be delivered to Investor by registered or certified mail, return receipt requested, postage prepaid, to the Investor’s address as set forth on the signature page to this Agreement.
 
(b)  Notwithstanding the place where this Agreement may be executed by any of the parties hereto, the parties expressly agree that all of the terms and provisions hereof shall be construed in accordance with and governed by the laws of the State of Nevada applicable to agreements made and to be wholly performed therein.
 
(c)  This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and may be amended only by an instrument in writing executed by all parties.
 
(d)  This Agreement shall be binding upon the heirs, estates, legal representatives, successors and assigns of the parties hereto.
 
(e)  All terms used herein shall be deemed to include the masculine, feminine and neuter, and the singular and plural as the context requires.  Captions herein are for convenience of reference only and shall not alter or affect the meaning or construction of the paragraphs hereof to which they relate.
 
(f)  Each of the parties hereto agree to execute such other documents, instruments or agreements as shall be reasonably necessary, appropriate or required to evidence the intent of the parties hereto.

 

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IN WITNESS WHEREOF, the undersigned have executed, or caused to be executed, this Subscription and Investment Representation Agreement this 12 day of May, 2004.
 
 

	
  INVESTOR

  	
   

  
	
   

  	
   

  
	
  Thomas Crown Investments Limited

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Geraldo Cesar Mercer Guimaraes

  	
   

  	
   

  
	
  Name:

  	
  Geraldo Cesar Mercer Guimaraes

  	
   

  	
   

  
	
  Title:

  	
  Directors

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
  Unit 3, 20th Floor, Golden Centre

  	
   

  
	
   

  	
   

  	
  188 Des Voeux Road Central

  	
   

  
	
   

  	
   

  	
  Hong Kong, China

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	Agreed and Accepted:

	 
	 
	 

	 
	 
	 

	INTAC INTERNATIONAL, INC.
	 

	 
	 
	 

	 
	 
	 

	By:
	/s/ Wei Zhou
	 
	 

	 
	Wei Zhou, Chief Executive Officer
	 

								

 

10Exhibit
10.1

 

COGENT
COMMUNICATIONS GROUP, INC.

 

FOURTH
AMENDED AND RESTATED

STOCKHOLDERS AGREEMENT

 

THIS STOCKHOLDERS AGREEMENT (this “Agreement”)
is made as of the 12th day of August, 2004 by and among (i) Cogent
Communications Group, Inc., a Delaware corporation (the “Company”), (ii)
David Schaeffer (the “Founder”) and (iii) those persons whose names are
set forth under the heading “Purchasers” on Schedule I hereto and any person
who later becomes a party to this Agreement by executing and delivering to the
Company an Instrument of Accession in the form of Schedule II hereto (the “Purchasers”).

 

WITNESSETH:

 

WHEREAS, simultaneously herewith, the Company and
certain of the Purchasers (the “Series K Purchasers”) have consummated a
merger agreement between the Company, the Company’s subsidiary Marvin Internet,
Inc. (“Marvin Merger Sub”) and UFO Group, Inc. (“UFO Group”),
(the “UFO Merger Agreement”), whereby the Series K Purchasers, subject
to the terms and conditions set forth therein, received 2,600 shares of the
Company’s Series K Preferred Stock, par value $.001 per share (“Series K
Preferred Stock”);

 

WHEREAS, the Founder and certain of the Purchasers who
purchased the Series F Participating Convertible Preferred Stock, par value
$.001 per share (“Series F Preferred Stock”), of the Company, the
various sub-series of Series G Participating Convertible Preferred Stock, par
value $.001 per share (collectively, the “Series G Preferred Stock”), of
the Company, the Series I Participating Convertible Preferred Stock, par value
$.001 per share (“Series I Preferred Stock”), of the Company, and the
Series J Participating Convertible Preferred Stock, par value $.001 per share
(“Series J Preferred Stock”), of the Company, (collectively, the Series
F Preferred Stock, Series G Preferred Stock, Series I Preferred Stock, Series J
Preferred Stock, and Series K Preferred Stock shall be known as the “Preferred
Stock”), are parties to that certain Third Amended and Restated
Stockholders Agreement, dated as of July 31, 2003 (the “Third A&R
Stockholders Agreement”), and in connection with the consummation of the
transactions contemplated by the UFO Merger Agreement, the Company, the Founder
and such Purchasers, constituting signatories sufficient under Section 15 of
the Third A&R Stockholders Agreement to amend the Third A&R
Stockholders Agreement, desire to amend and restate the Third A&R
Stockholders Agreement as set forth herein and execute and deliver this
Agreement, setting forth herein certain terms and conditions governing their
relative ownership of the Shares (as hereinafter defined);

 

NOW THEREFORE, in consideration of the mutual
covenants herein contained and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Company, the
Founder and the Purchasers hereby agree as follows:

 

 

1.                                       Prohibited
Transfers. The Founder shall not sell, assign, transfer, pledge,
hypothecate, mortgage or dispose of, by gift or otherwise, or in any way
encumber, all or any part of the Shares (as hereinafter defined) owned by him
except in compliance with the terms of this Agreement.  For purposes of this Agreement, the term “Shares”
shall mean and include all shares of Common Stock of the Company and all shares
of any class or series of equity securities or equity-backed securities of the
Company or any subsidiary, including without limitation, capital stock
(including any shares of treasury stock) or rights, options, warrants or other
securities convertible into or exercisable or exchangeable for capital stock or
any debt security which by its terms is convertible into or exchangeable for
any equity security or has any other equity feature or any security that is a
combination of debt and, in any event that is owned by the Founder, whether
presently held or hereafter acquired.

 

2.                                       Purchasers’
Right of Refusal on Dispositions made by the Founder.  Except as set forth in Section 4, if the
Founder wishes to sell, assign, transfer or otherwise dispose of any or all
Shares owned by him pursuant to the terms of a bona fide offer received from a
third party at any time prior to the consummation of a firmly underwritten
public offering pursuant to an effective registration statement under the
Securities Act of 1933, as amended, covering the offer and sale of Common Stock
of the Company in which (a) the pre-money valuation of the Company is at least
$500,000,000 and (b) the gross cash proceeds (before underwriting discounts,
commissions and fees) are at least $50,000,000 (a “Qualified Offering”),
the Founder shall submit a written offer to sell such Shares to the Purchasers
(with a copy to the Company) on terms and conditions, including price, not less
favorable to the Purchasers than those on which the Founder proposes to sell
such Shares to such third party (the “Offer”).  The Offer shall disclose the identity of the proposed purchaser
or transferee, the Shares proposed to be sold or transferred, the agreed terms
of the sale or transfer and any other material facts relating to the sale or
transfer.  Within thirty (30) days after
receipt of the Offer, each Purchaser and each Qualified Transferee, if any,
shall give notice to the Founder of its intent to purchase all or any portion
of the offered Shares on the same terms and conditions as set forth in the
Offer.  Each Purchaser and Qualified
Transferee shall have the right to purchase that number of the Shares as to
which the Offer applies as shall be equal to the aggregate number of such
Shares multiplied by a fraction, the numerator of which is the number of shares
of Common Stock of the Company then owned by such Purchaser or Qualified
Transferee (as applicable) (calculated on an as converted basis, and including
any shares of Common Stock deemed to be beneficially owned by such Purchaser
pursuant to Rule 13d-3 promulgated under the Securities Exchange Act of 1934 (“Rule
13d-3”)) and the denominator of which is the aggregate number of shares of
said Common Stock then issued and outstanding and held by (and deemed to be
beneficially owned by) all the Purchasers (calculated on an as converted
basis).  The amount of Shares each
Purchaser or Qualified Transferee, as that term is defined below, is entitled
to purchase under this Section 2 shall be referred to as such Purchaser’s “Pro
Rata Fraction.”  Each Purchaser shall
have the right to transfer his right to any Pro Rata Fraction or part thereof
to any Qualified Transferee.  If any
Purchaser or Qualified Transferee does not wish to purchase or to transfer his
right to purchase his Pro Rata Fraction (such shares, the “Remaining Offered
Shares”), then any Purchasers or Qualified Transferees who so elect shall
have the right to purchase, on a pro rata basis with any other Purchasers or
Qualified Transferees who so elect, any Pro Rata Fraction not purchased by a
Purchaser or

 

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Qualified Transferee.  Each
Purchaser or Qualified Transferee shall act upon the Offer as soon as
practicable after receipt from the Company of notice that a Purchaser or
Qualified Transferee has not elected to purchase all of the offered Shares, and
in all events within fifteen (15) days after receipt thereof.  Each Purchaser and Qualified Transferee
shall have the right to accept the Offer as to all or part of the Remaining
Offered Shares offered thereby.  If a
Purchaser or Qualified Transferee shall elect to purchase all or part of such
Purchaser’s or Qualified Transferee’s Pro Rata Fraction, said Purchaser or
Qualified Transferee shall individually communicate in writing such election to
purchase to whichever of the Purchasers has made the Offer, which communication
shall be delivered by hand or delivered to such Purchaser at the address set
forth in Section 8 below and shall, when taken in conjunction with the Offer be
deemed to constitute a valid, legally binding and enforceable agreement for the
sale and purchase of the Shares covered thereby.

 

If the Purchasers, taken together, do not agree to
purchase all of the Shares offered by the Founder pursuant to the Offer, and
consummate such purchase within the later of forty-five (45) days after receipt
of the Offer and twenty (20) days after the Company shall have notified each
Purchaser and Qualified Transferee of Remaining Offered Shares, such Shares
subject to the Offer as shall not have been purchased may be sold by the
Founder at any time within 90 days after the expiration of the Offer, but
subject to the provisions of Section 3 below. 
Any such sale shall be at not less than the price and upon other terms
and conditions, if any, not more favorable to the purchaser than those
specified in the Offer.  Any Shares not
sold within such 90-day period shall continue to be subject to the requirements
of a prior offer and re-sale pursuant to this Section.

 

For purposes hereof, a “Qualified Transferee”
shall mean any person (i) who is a Purchaser, (ii) who is an “affiliated
person” of a Purchaser, as that term is defined in the Investment Company Act
of 1940, (iii) who is a partner, member or stockholder of a Purchaser that is a
partnership, limited liability company or corporation, as applicable, and who
is offered a pro rata right, based on his, her or its interest in the
Purchaser, to acquire the Shares offered by a Purchaser pursuant to this
Section 2, or (iv) who acquires at least twenty five percent (25%) of the
shares of Preferred Stock issued by the Company to any Purchaser (as adjusted
for stock splits, stock dividends, reclassifications, recapitalizations or
other similar events).

 

3.                                       Purchasers’
Right of Participation in Sales made by the Founder.  Except as set forth in Section 4, if at any
time the Founder wishes to sell, transfer or otherwise dispose of any Shares
owned by him to any person (the “Acquiror”) in a transaction which is
subject to the provisions of Section 2 hereof, and such sale, transfer or other
disposition would, when combined with all prior sales, transfers and other
dispositions by the Founder, result in the transfer by the Founder of Shares
representing more than twenty-five percent (25%) of the total number of shares
held by the Founder (the “Founder’s Stock”), each Purchaser shall have
the right to require, as a condition to such sale or disposition, that the
Acquiror purchase from said Purchaser at the same price per Share and on the
same terms and conditions as involved in such sale or disposition by the
Founder the same percentage of shares of Common Stock owned (and deemed to be
beneficially owned under Rule 13d-3) by such Purchaser as such sale or

 

3

 

disposition represents with respect to the number of shares of
Founder’s Stock (calculated on an as converted, fully diluted basis) owned by
the Founder immediately prior to such sale. 
Each Purchaser wishing so to participate in any such sale or disposition
shall notify the Founder of such intention as soon as practicable after receipt
of the Offer made pursuant to Section 2, and in all events within fifteen (15)
days after receipt thereof.  If a
Purchaser shall elect to participate in such sale or disposition, said
Purchaser shall individually communicate such election to the Founder, which
communication shall be delivered by hand or mailed to the Founder at the
address set forth in Section 8 below. 
The Founder and/or each participating Purchaser shall sell to the
Acquiror all, or at the option of the Acquiror, any part of the Stock (as
defined in Section 5 below) proposed to be sold by them at not less than the
price and upon other terms and conditions, if any, not more favorable to the
Acquiror than those set forth in the Offer; provided, however,
that any purchase of less than all of such Stock by the Acquiror shall be made
from the Founder and/or each participating Purchaser based upon a fraction, the
numerator of which is the number of shares of Stock of the Company then owned
by the Founder or such participating Purchaser (including any shares of Common
Stock deemed to be owned under Rule 13d-3) and the denominator of which is the
aggregate number of shares of Stock held by (and deemed to be held by) the
Founder and all of the participating Purchasers.  The Founder shall use his commercially reasonable efforts to
obtain the agreement of the Acquiror to the participation of the participating
Purchasers in the contemplated sale, and shall not sell any Stock to such
Acquiror if such Acquiror declines to permit the participating Purchasers to
participate pursuant to the terms of this Section 3.  The provisions of this Section 3 shall not apply to the sale of
any Shares by the Founder (i) to a Purchaser pursuant to an Offer under Section
2 or (ii) made upon or after the occurrence of a Qualified Offering, the sale
of the Company or control thereof, whether by merger, sale, recapitalization or
similar corporate event or the transfer of more than a majority of its capital
stock (calculated on an as converted, fully diluted basis) or assets, or the
conversion into Common Stock of all then outstanding shares of Preferred Stock
(each such event in this clause (ii), a “Corporate Event”).

 

4.                                       Permitted
Transfers.  Anything herein to the
contrary notwithstanding, the provisions of Sections 1, 2 and 3 shall not apply
to: (a) any transfer of Shares by the Founder by gift or bequest or through
inheritance to, or for the benefit of, any member or members of his immediate
family; (b) any transfer of Shares by the Founder to a trust in respect of
which he serves as trustee, provided that the trust instrument governing said
trust shall provide that Founder, as trustee, shall retain sole and exclusive
control over the voting and disposition of said Shares until the termination of
the applicable restrictions on transfer under this Agreement; (c) any sale of
Common Stock in a public offering pursuant to a registration statement filed by
the Company with the Securities and Exchange Commission; (d) any repurchase of
Shares from officers, employees, directors or consultants of the Company which
are subject to restrictive stock purchase agreements under which the Company
has the option to repurchase such shares upon the occurrence of certain events,
including termination of employment; and (e) any pledge, hypothecation or other
similar financing transaction in which the Founder continues to have the sole
and exclusive authority and right to vote the shares subject to such pledge,
hypothecation or other financing transaction. 
In the event of any such transfer, other than pursuant to subsection (c)
of this Section 4, the transferee of the Shares shall hold the Shares so
acquired

 

4

 

with all the rights conferred by, and subject to all the restrictions
imposed by, this Agreement on the party from whom the transferee received the
Shares, and as a condition to such transfer, each such transferee shall execute
and deliver a written agreement agreeing to be bound by the provisions of this
Agreement.

 

5.                                       Election
of Directors; Issuance of Options; Protective Provisions.

 

(a)                                  Election
of Directors.  Each of the parties
hereto agrees to vote all of the Stock (as hereinafter defined and that
entitles the holder thereof to vote in the election of the Board of Directors)
now owned or hereafter acquired by such party (and attend, in person or by
proxy, all meetings of stockholders called for the purpose of electing
directors), and the Company agrees to take all actions (including, but not
limited to the nomination of specified persons) to cause and maintain the
election to the Board of Directors of the Company, to the extent permitted
pursuant to the Company’s certificate of incorporation, of the following:

 

(i)                                     two
(2) individuals designated by the Founder (one of the designees under this
subsection shall initially be David Schaeffer);

 

(ii)                                  two
(2) individuals designated by the holders of a majority in interest of the
Shares owned as of the date hereof by Jerusalem Venture Partners and certain of
its affiliates (the designees under this subsection shall initially be Erel
Margalit and Michael Carus);

 

(iii)                               one (1) individual
designated by the holders of a majority in interest of the Shares owned as of
the date hereof by Worldview Technology Partners and certain of its affiliates
(the designee under this subsection shall initially be Tim Weingarten);

 

(iv)                              one
(1) individual designated by the holders of a majority in interest of the
Shares owned as of the date hereof by Oak Investment Partners and certain of
its affiliates (the designee under this subsection shall initially be Edward
Glassmeyer);

 

(v)                                 one
(1) individual designated by the holders of a majority in interest of the
Shares owned as of the date hereof by Broadview Capital Partners and certain of
its affiliates (the designee under this subsection shall initially be Steven
Brooks); and

 

(vi)                              one
(1) individual designated by BNP Europe Telecom & Media Fund II, LP and
Natio vie Developpement 3, FCPR (the designee under this subsection shall
initially be Jean-Jacques Bertrand); and

 

(vii)                           a three (3) member
Compensation Committee, one of the members of which shall be nominated by the
directors elected pursuant to subparagraph (i) above and who shall not be the
Founder and two of the members of which shall be nominated by the directors
elected pursuant to subparagraphs (ii), (iii), (iv) and (v) above.

 

5

 

Each of the parties further covenants and agrees to
vote, to the extent possible, all Stock of the Company now owned or hereafter
acquired by such party so that (i) the Company’s Board of Directors shall
consist of nine (9) members, eight (8) of whom shall be nominated or designated
as set forth above and the ninth of whom shall be an independent director
nominated by the Company’s Board of Directors, (ii) the Compensation Committee
thereof shall consist of three (3) members, each of whom shall be nominated as
set forth above, and (iii) the holders of the Series G Preferred Stock, the
Series I Preferred Stock, the Series J Preferred Stock and the Founder’s Stock
shall be entitled, in the aggregate, to have up to four persons as observers at
each meeting of the Board of Directors and any committee (other than the
Compensation Committee) thereof, provided that at least one of such observers
shall be selected by the holders of the Series I Preferred Stock and the Series
J Preferred Stock.  For the purposes of
this Agreement, “Stock” shall mean and include all Preferred Stock and
Common Stock and all other securities of the Company which may be exchangeable
for or issued in exchange for or in respect of shares of Common Stock (whether
by way of stock split, stock dividends, combination, reclassification,
reorganization or any other means).

 

In the absence of any designation from the persons or
groups so designating directors as specified above, the director previously
designated by them and then serving shall be reelected if still eligible to
serve as provided herein.

 

No party hereto shall vote to remove any member of the
Board of Directors or the Compensation Committee thereof designated in
accordance with the aforesaid procedure unless the persons or groups so
designating directors as specified above so vote, and, if such persons or groups
so vote then the non-designating party or parties shall likewise so vote.

 

Any vacancy on the Board of Directors or the
Compensation Committee thereof created by the resignation, removal, incapacity
or death of any person designated under this Section 5 shall be filled by
another person designated in a manner so as to preserve the constituency of the
Board or such Committee as provided above.

 

(b)                                 Issuance
of Options to Holders of Preferred Stock. 
From and after the date hereof, each of the parties hereto agrees that
the Company shall not, and each agrees to vote all of their Shares of the
Company now owned or hereafter acquired by such party (and attend, in person or
by proxy, all meetings of stockholders called for the purpose of electing
directors) to preclude the Company from issuing any options under the Company’s
stock option plans as in effect from time to time to any holder of Preferred
Stock or any person employed by or controlled by or under common control with
any such holder or any affiliate thereof without first obtaining the unanimous
approval of the Board of Directors of the Company.

 

(c)                                  Protective
Provisions.  For so long as at least
9,500 shares of Series G Preferred Stock, Series I Preferred Stock, Series J
Preferred Stock, and Series K collectively remain outstanding, the affirmative
vote or consent of the holders of two-thirds (2/3) of the issued and
outstanding shares of Series G Preferred Stock, Series I Preferred Stock,
Series J Preferred Stock

 

6

 

and Series K Preferred Stock, voting together as a single class, shall
be required to take any of the following actions (including by way of merger,
consolidation or otherwise):

 

(i)                                     designate,
authorize, create, issue, sell, redeem or repurchase any class or series of
equity securities or equity-backed securities of the Company or any subsidiary
thereof, including without limitation, capital stock (including any shares of
treasury stock) or rights, options, warrants or other securities convertible
into or exercisable or exchangeable for capital stock or any debt security
which by its terms is convertible into or exchangeable for any equity security
or has any other equity feature or any security that is a combination of debt
and equity (collectively, “Equity Securities”), other than pursuant to
(i) employee stock option and similar incentive plans approved by the Board of
Directors, (ii) the issuance of Common Stock upon the conversion of the 7.5%
Convertible Subordinated Notes due 2007 of Allied Riser Communications
Corporation (the “Notes”) in accordance with the terms thereof or the
issuance of additional convertible debt or equity as a paid-in-kind interest
payment on the Notes in accordance with the terms thereof approved by the Board
of Directors or (iii) a conversion or exchange right set forth in Company’s
certificate of incorporation;

 

(ii)                                  except
as otherwise expressly provided as of the date hereof in the Company’s
certificate of incorporation or in a certificate of designations thereto,
declare or pay any dividends or make any distributions of any kind with respect
to any outstanding Equity Securities of the Company or any subsidiary thereof;

 

(iii)                               approve the merger,
consolidation, dissolution or liquidation of the Company or any subsidiary
thereof, or any transaction having the same effect;

 

(iv)                              increase
or decrease the aggregate number of authorized shares of Common Stock or
Preferred Stock of the Company;

 

(v)                                 sell
all or substantially all of the assets of the Company and its subsidiaries
taken as a whole, whether directly through a sale of the Company’s interests in
its subsidiaries or other assets, or indirectly through a sale of the assets of
its subsidiaries, in one transaction or any series of transactions, or approve
any transaction or series of transactions having the same effect;

 

(vi)                              cause,
directly or indirectly, a material change in the nature of the business or
strategic direction of the Company and its subsidiaries, taken as a whole;

 

(vii)                           approve the filing for
bankruptcy of or any decision not to take action to prevent a filing for
bankruptcy or not to oppose an involuntary filing for bankruptcy or other
winding up of the Company or any subsidiary thereof;

 

(viii)                        approve the establishment and
maintenance of an Executive Committee of the Board of Directors or increase or
decrease the number of directors composing the Board of Directors; or

 

7

 

(ix)                                amend,
repeal or modify any provision of the Company’s certificate of incorporation in
a manner that adversely affects the rights, powers or preferences of the
Preferred Stock.

 

6.                                       Right
of Participation in Sales by the Company.

 

(a)                                  Right
of Participation.  Except as
provided in Section 6(f) of this Agreement, the Company shall not issue, sell
or exchange, agree or obligate itself to issue, sell or exchange, or reserve or
set aside for issuance, sale or exchange, any (i) shares of Common Stock, (ii)
any other equity security of the Company, including without limitation, shares of
Preferred Stock, (iii) any debt security of the Company (other than debt with
no equity feature) including without limitation, any debt security which by its
terms is convertible into or exchangeable for any equity security of the
Company, (iv) any security of the Company that is a combination of debt and
equity, or (v) any option, warrant or other right to subscribe for, purchase or
otherwise acquire any such equity security or any such debt security of the
Company, unless in each case the Company shall have first offered to sell such
securities (the “Offered Securities”) to the Purchasers who hold
individually or together with their affiliates at least 2,500,000 Shares of the
Common Stock on an as converted basis then outstanding and, for so long as the
Founder holds not less than fifty percent (50%) of the number of shares of
Founder’s Stock held by him on the date hereof (in both cases, as adjusted for
stock splits, stock dividends, reclassifications, recapitalizations or other
similar events), the holders of the Founder’s Stock (such Purchasers and, if
applicable, the holders of the Founder’s Stock being referred to as the “Participating
Stockholders”) as follows:  The
Company shall offer to sell to each Participating Stockholder (a) that portion
of the Offered Securities as the number of shares of Common Stock (including
all shares of capital stock convertible into Common Stock, on a fully-diluted
basis) then held by such Participating Stockholder, as the case may be, bears
to the total number of shares of Common Stock (including all shares of capital
stock convertible into Common Stock, on a fully-diluted basis) of the Company
then outstanding (the “Basic Amount,” and the aggregate of the Basic
Amounts of all Participating Stockholders being referred to as the “Aggregate
Basic Amount”), and (b) such additional portion of the Aggregate Basic
Amount as such Participating Stockholder shall indicate it will purchase should
the other Participating Stockholders subscribe for less than their Basic
Amounts (the “Undersubscription Amount”), at a price and on such other
terms as shall have been specified by the Company in writing delivered to such
Participating Stockholder (the “Offer”), which Offer by its terms shall
remain open and irrevocable for a period of twenty (20) days from receipt of
the offer.

 

(b)                                 Notice
of Acceptance.  Notice of each
Participating Stockholder’s intention to accept, in whole or in part, any Offer
made pursuant to Section 6(a) shall be evidenced by a writing signed by such
Participating Stockholder and delivered to the Company prior to the end of the
20-day period of such offer, setting forth such of the Participating
Stockholder’s Basic Amount as such Participating Stockholder elects to purchase
and, if such Participating Stockholder shall elect to purchase all of its Basic
Amount, such Undersubscription Amount as such Participating Stockholder shall
elect to purchase (the “Notice of Acceptance”).  If the Basic

 

8

 

Amounts subscribed for by all Participating Stockholders are less than
the total Aggregate Basic Amount, then each Participating Stockholder who has
set forth Undersubscription Amounts in its Notice of Acceptance shall be
entitled to purchase, in addition to the Basic Amounts subscribed for, all
Undersubscription Amounts it has subscribed for; provided, however,
that should the Undersubscription Amounts subscribed for exceed the difference
between the Aggregate Basic Amount and the Basic Amounts subscribed for (the “Available
Undersubscription Amount”), each Participating Stockholder who has
subscribed for any Undersubscription Amount shall be entitled to purchase only
that portion of the Available Undersubscription Amount as the Undersubscription
Amount subscribed for by such Participating Stockholder bears to the total
Undersubscription Amounts subscribed for by all Participating Stockholders,
subject to rounding by the Board of Directors to the extent it reasonably deems
necessary.

 

(c)                                  Conditions
to Acceptances and Purchase.

 

(i)                                     Permitted
Sales of Refused Securities.  If
Notices of Acceptance are not given by the Participating Stockholders in
respect of all the Aggregate Basic Amount, the Company shall have ninety (90)
days from the expiration of the period set forth in Section 6(a) to close the
sale of all or any part of such Aggregate Basic Amount as to which a Notice of
Acceptance has not been given by the Participating Stockholders (the “Refused
Securities”) to the person or persons specified in the Offer, but only for
cash and otherwise in all respects upon terms and conditions, including,
without limitation, unit price and interest rates, which are no more favorable,
in the aggregate, to such other person or persons or less favorable to the
Company than those set forth in the Offer.

 

(ii)                                  Reduction
in Amount of Offered Securities.  If
the Company shall propose to sell less than all the Refused Securities (any
such sale to be in the manner and on the terms specified in Section 6(c)(i)
above), then each Participating Stockholder may, at its sole option and in its
sole discretion, reduce the number of, or other units of the Offered Securities
specified in its respective Notices of Acceptance to an amount which shall be
not less than the amount of the Offered Securities which the Participating
Stockholder elected to purchase pursuant to Section 6(b) multiplied by a
fraction, (A) the numerator of which shall be the amount of Offered Securities
which the Company actually proposes to sell, and (B) the denominator of which
shall be the amount of all Offered Securities. 
In the event that any Participating Stockholder so elects to reduce the
number or amount of Offered Securities specified in its respective Notices of
Acceptance, the Company may not sell or otherwise dispose of more than the
reduced amount of the Offered Securities until such securities have again been
offered to the Participating Stockholders in accordance with Section 6(a).

 

(iii)                               Closing.  Upon the closing, which shall include full
payment to the Company, of the sale to such other person or persons of all or
less than all the Refused Securities, the Participating Stockholders shall
purchase from the Company, and the Company shall sell to the Participating
Stockholders, the number of Offered Securities specified in the Notices of
Acceptance, as reduced pursuant to Section 6(c)(ii) if the Participating
Stockholders have so elected, upon the terms and conditions specified in the
Offer.  The purchase by the

 

9

 

Participating Stockholders of any Offered Securities is subject in all
cases to the preparation, execution and delivery by the Company and the
Participating Stockholders of a purchase agreement relating to such Offered
Securities reasonably satisfactory in form and substance to the Participating
Stockholders and their respective counsel.

 

(d)                                 Further
Sale.  In each case, any Offered
Securities not purchased by the Participating Stockholders or other person or
persons in accordance with Section 6(c) may not be sold or otherwise disposed
of until they are again offered to the Participating Stockholders under the
procedures specified in Sections 6(a), 6(b) and 6(c).

 

(e)                                  Termination
of Right of Participation.  The
rights of the Participating Stockholders under this Section 6 shall terminate
immediately prior to the consummation of a Qualified Offering.  In addition, the rights of holders of the
Founder’s Stock under this Section 6 shall terminate when the Founder owns less
than 50% of the shares of Founder’s Stock held by the Founder on the date first
above written (as adjusted for stock splits, stock dividends,
reclassifications, recapitalizations or other similar events).  Upon the termination of the rights of an
individual or entity pursuant to this subsection (e), such individual or entity
shall no longer be deemed to be a “Participating Stockholder” under this
Section 6.

 

(f)                                    Exception.  The rights of the Participating Stockholders
under this Section 6 shall not apply to:

 

(i)                                     Common
Stock issued as a stock dividend to holders of Common Stock or upon any
subdivision or combination of shares of Common Stock,

 

(ii)                                  shares
of any series of Preferred Stock issued as a dividend to holders of such series
of Preferred Stock upon any subdivision or combination of shares of such series
of Preferred Stock,

 

(iii)                               shares of Common Stock
issued or issuable upon conversion of the Preferred Stock,

 

(iv)                              up
to 10,000 shares of Common Stock issued or issuable pursuant to options,
warrants or other rights (as adjusted for any stock dividends, combinations,
splits, recapitalizations and the like) issued to employees, officers or
directors of, or consultants or advisors to the Company or any subsidiary
pursuant to stock purchase or stock option plans or other arrangements that are
approved by the Board of Directors,

 

(v)                                 up
to 84,001 shares of Series H Preferred Stock issued to employees, officers or
directors of, or consultants or advisors to the Company or any subsidiary
pursuant to that certain 2003 Incentive Award Plan of the Company,

 

(vi)                              Common
Stock issued pursuant to the acquisition of another corporation by the Company
by merger (whereby the Company owns no less than 51% of the

 

10

 

voting power of such corporation) or purchase of substantially all of
its stock or assets, if such acquisition is approved by a majority of the
Directors nominated by the holders of the Preferred Stock in the manner set
forth in Section 5 hereof,

 

(vii)                           Common Stock offered to the
public pursuant to a registration statement filed under the Securities Act,

 

(viii)                        Common Stock, or options or
warrants to purchase Common Stock, issued to financial institutions or lessors
in connection with commercial credit arrangements, equipment financings or
similar transactions, as approved by the two-thirds (2/3rds) of the then
sitting members of the Board of Directors,

 

(ix)                                shares
of Series F Preferred Stock issued pursuant to that certain Exchange Agreement
by and among the Company, Cisco Systems Capital Corporation (“Cisco Capital”),
and the other parties thereto, dated June 26, 2003 (the “Exchange Agreement”),

 

(x)                                   shares
of Series G Preferred Stock issued pursuant to that certain Participating
Convertible Preferred Stock Purchase Agreement by and among the Company and the
Series G Preferred Stock Purchasers (“Series G Purchasers”), dated June
26, 2003 (the “Purchase Agreement”),

 

(xi)                                shares
of Series I Preferred Stock issued pursuant to that certain Gamma Merger
Agreement, dated January 5, 2004,

 

(xii)                             shares of Series J Preferred
Stock issued pursuant to that certain Omega Merger Agreement, dated March 30,
2004,

 

(xiii)                          shares of Series K Preferred
Stock issued pursuant to that certain UFO Merger Agreement, and

 

(xiv)                         the issuance of Common Stock
upon the conversion of the Notes or the issuance of additional convertible debt
or equity as a paid-in-kind interest payment the Notes approved by the Board of
Directors.

 

(g)                                 Waiver.  The rights of the Purchasers under this
Section 6 may be waived in any instance, on behalf of all of the Purchasers,
prospectively or retroactively, by the written agreement of the holders of
two-thirds in interest of the Preferred Stock owned beneficially or of record
by the Purchasers.  The rights of
holders of the Founder’s Stock under this Section 6 may be waived in any
instance, on behalf of all such holders, prospectively or retroactively, by the
written agreement of the holders of a majority of the Founder’s Stock then
outstanding.  Upon waiver of the rights
of the Purchasers or holders of Founder’s Stock in accordance with this
subsection (g) with respect to a particular issuance, sale or exchange of
Offered Securities, the Purchasers or such holder, as the case may be, shall be
excluded from the definition of

 

11

 

“Participating Stockholders” for purposes of this Section 6 with
respect to such issuance, sale or exchange.

 

7.                                       Termination.  This Agreement, and the respective rights
and obligations of the parties hereto, shall terminate upon the earliest to
occur of the following: (i) the completion of a Qualified Offering, provided
that the obligations of Section 9 shall survive such termination; or (ii) the
sale of the Company, whether by merger, sale, or transfer of more than ninety
percent (90%) of its capital stock, or sale of substantially all of its
assets.  In addition, any Purchaser or
Qualified Transferee may elect to terminate its rights and obligations with
respect to any or all of Sections 2, 3, 5 or 6 by providing written notice of
such election to the Company at any time.

 

8.                                       Notices.  All notices and other communications
hereunder shall be in writing and shall be deemed to have been given when
delivered or mailed by first class, registered or certified mail (air mail if
to or from outside the United States), return receipt requested, postage
prepaid, or by internationally, recognized overnight courier service (two
business days after deposit with such overnight courier service in the case of
deliveries to non-U.S. residents), if to each Purchaser at his respective
address set forth on Schedule I hereto or on the Instrument of Accession
pursuant to which he became a party to this Agreement, and if to the Founder,
at his address set forth on Schedule I hereto or to such other address as the addressee
shall have furnished to the other parties hereto in the manner prescribed by
this Section 8.

 

9.                                       Lock-up
Agreement.  Each of the Purchasers
and holders of Founder’s Stock hereby agrees in connection with the Company’s
Qualified Offering, upon the request of the principal underwriter managing the
Qualified Offering of the Company, not to sell publicly any Shares now owned or
hereafter acquired by him, her or it and subject to this Agreement (other than
Shares being registered in such offering or any shares purchased in the open
market after the Company’s initial public offering) without the prior written
consent of such underwriter for a period of time (not to exceed one hundred
eighty (180) days) from the consummation of such Qualified Offering as the
underwriter may specify, in all events subject to the provisions of Section
13(f) of a certain Fourth Amended and Restated Registration Rights Agreement
dated as of the date hereof.

 

10.                                 Failure
to Deliver Shares.  If the Founder
becomes obligated to sell any Shares owned by, or held for the benefit of, such
Purchaser to the Founder, another Purchaser or a Qualified Transferee under
this Agreement and fails to deliver such shares in accordance with the terms of
this Agreement, the Founder or such Purchaser, as applicable, may, at his or
its option, in addition to all other remedies it may have, send to the Company
for the benefit of such selling Purchaser the purchase price for such Shares as
is herein specified.  Thereupon, the
Company upon written notice to said Purchaser, (a) shall cancel on its books
the certificate(s) representing the Shares to be sold and (b) shall issue, in
lieu thereof, in the name of the Founder or such Purchaser, as applicable, a
new certificate(s) representing such Shares, and thereupon all of said
Purchaser’s rights in and to such shares shall terminate.  The Company may exercise a similar remedy in
enforcing its rights under Section 2. 
If the Founder transfers any shares to a Purchaser in violation of this
Agreement, the Company may, at the election of a majority of the

 

12

 

disinterested members of the Board of Directors, cancel on the books of
the Company any shares of capital stock then held by the Founder, and compel
the Founder to purchase from any transferee a number of shares of capital stock
equal to the amount so transferred in violation of this Agreement.

 

11.                                 Specific
Performance.  The rights of the
parties under this Agreement are unique and, accordingly, the parties shall, in
addition to such other remedies as may be available to any of them at law or in
equity, have the right to enforce their rights hereunder by actions for
specific performance to the extent permitted by law.

 

12.                                 Legend.  Until this Agreement terminates in full, the
certificates representing the Shares shall bear on their face a legend
indicating the existence of the restrictions imposed hereby.  After the Qualified Offering, the Company
shall not issue or deliver to any transfer agent a stop transfer notice with
respect to any Shares, the transfer of which is permitted pursuant to Rule
144(k) and the Securities Act of 1933.

 

13.                                 Entire
Agreement.  This Agreement
(including any and all exhibits, schedules and other instruments contemplated
thereby) constitutes the entire agreement among the parties with respect to the
subject matter hereof and supersedes all prior agreements and understandings
between them or any of them as to such subject matter.

 

14.                                 Waivers
and Further Agreements.  Except as
otherwise expressly set forth herein, the rights of the Purchasers and holders
of Founder’s Stock under this Agreement may be waived by an instrument in
writing executed and delivered by Purchasers holding at least two-thirds in
interest of the Common Stock (including shares of Common Stock into which any
shares of Preferred Stock are convertible) then held or deemed to be held by
all Purchasers and holders of Founder’s Stock; provided, however,
that the rights set forth in Section 5 with respect to the designation of the
Board of Directors of the Company may not be waived without the prior written
consent of the constituency affected by such waiver, which waiver shall be
obtained in a manner consistent with, and shall require the same percentages
prescribed in, Section 5.  Any waiver by
any party of a breach of any provision of this Agreement shall not operate or
be construed as a waiver of any subsequent breach of that provision or of any
other provision hereof.  Each of the
parties hereto agrees to execute all such further instruments and documents and
to take all such further action as any other party may reasonably require in
order to effectuate the terms and purposes of this Agreement.  Notwithstanding the foregoing, no waiver
approved in accordance herewith shall be effective if and to the extent that
such waiver grants to any one or more Purchasers or holders of Founder’s Stock
any rights more favorable than any rights granted to all other Purchasers and
holders of Founder’s Stock or otherwise treats any one or more of such parties
differently than all other such parties.

 

15.                                 Amendments.  Except as otherwise expressly provided
herein, this Agreement may not be amended except by an instrument in writing
executed by (i) holders of at least two-thirds in interest of the shares of
Common Stock issued or issuable to the Purchasers (including shares of Common
Stock into which any shares of Preferred Stock are convertible) and (ii) the
Company.  Notwithstanding the foregoing,
no amendment approved in accordance with this

 

13

 

Section 15 shall be effective if and to the extent that such amendment
(i) creates any additional affirmative obligations to be complied with by any
or all of the Purchasers and holders of Founder’s Stock unless approved by
holders of all of the Preferred Stock then outstanding and/or (ii) adversely
affects any of the Founder’s rights existing under this Agreement prior to such
amendment in a manner that is inconsistent with, or disproportionate to, the
effect of such amendment on the other parties hereto and/or (iii) adversely
affects any Purchaser’s rights existing under this Agreement prior to such
amendment in a manner that is inconsistent with, or disproportionate to, the
effect of such amendment on the other Purchasers.  In addition, the rights set forth in Section 5 with respect to
the designation of the Board of Directors of the Company may not be amended
without the prior written consent of the constituency affected by such
amendment, which consent shall be obtained in a manner consistent with Section
5.

 

16.                                 Assignment;
Successors and Assigns.  This
Agreement shall be binding upon and shall inure to the benefit of the parties
hereto and their respective heirs, executors, legal representatives, successors
and permitted transferees, except as may be expressly provided otherwise
herein, and  provided, further, that no Purchaser may
transfer its rights or obligations hereunder except to a Qualified
Transferee.  Notwithstanding anything
contained herein to the contrary, until the first to occur of (i) termination
of this Agreement and (ii) a Qualified Offering, any transferee of  Preferred Stock shall, as a condition to
such transfer, deliver to the Company a written instrument by which such
transferee agrees to be bound by the obligations imposed hereunder on holders
of  Preferred Stock to the same extent
as if such transferee had signed this Agreement.

 

17.                                 Severability.  In case any one or more of the provisions
contained in this Agreement shall for any reason be held to be invalid, illegal
or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provision of this Agreement and
such invalid, illegal and unenforceable provision shall be reformed and construed
so that it will be valid, legal, and enforceable to the maximum extent
permitted by law.

 

18.                                 Counterparts.  This Agreement may be executed in two or
more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

 

20.                                 Section
Headings.  The headings contained in
this Agreement are for reference purposes only and shall not in any way affect
the meaning or interpretation of this Agreement.

 

21.                                 Governing
Law.  This Agreement shall be
construed and enforced in accordance with and governed by the laws of the State
of New York.

 

22.                                 Third
A&R Stockholders Agreement. 
Upon and after the Closing (as defined in the UFO Merger Agreement), the
Third A&R Stockholders Agreement shall be terminated and of no further
force and effect.

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

 

14

 

IN WITNESS WHEREOF, the parties hereto have executed
this FOURTH AMENDED AND RESTATED STOCKHOLDERS AGREEMENT as of the date first
above written.

 

[Signature
Page to Fourth Amended and Restated Stockholders Agreement]

 

 

	
  OAK INVESTMENT PARTNERS IX, LIMITED PARTNERSHIP

  	
   

  
	
   

  	
   

  
	
  By:  Oak
  Associates IX, LLC, its General Partner

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/Edward Glassmeyer

  	
   

  	
   

  
	
  Name: Edward Glassmeyer

  	
   

  
	
  Title: Managing Member

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  OAK IX AFFILIATES FUND, LIMITED PARTNERSHIP

  	
   

  
	
   

  	
   

  
	
  By:  Oak IX
  Affiliates, LLC, its General Partner

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/Edward Glassmeyer

  	
   

  	
   

  
	
  Name: Edward Glassmeyer

  	
   

  
	
  Title: Managing Member

  	
   

  
	
   

  	
   

  
	
  OAK IX AFFILIATES FUND-A, LIMITED PARTNERSHIP

  	
   

  
	
   

  	
   

  
	
  By:  Oak
  Associates IX, LLC, its General Partner

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/Edward Glassmeyer

  	
   

  	
   

  
	
  Name: Edward Glassmeyer

  	
   

  
	
  Title: Managing Member

  	
   

  

 

15

 

[Signature Page to Fourth Amended and Restated Stockholders
Agreement]

 

	
  JERUSALEM VENTURE PARTNERS III, L.P.

  	
   

  
	
   

  	
   

  
	
  By: 
  Jerusalem Partners III, L.P., its General Partner

  	
   

  
	
  By: 
  Jerusalem Venture Partners Corporation, its General Partner

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/Erel Margalit

  	
   

  	
   

  
	
  Name: Erel Margalit

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  JERUSALEM VENTURE PARTNERS III (ISRAEL), L.P.

  	
   

  
	
   

  	
   

  
	
  By:

  	
  Jerusalem Venture Partners III (Israel) Management
  Company Ltd.,

  its General l Partner

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/Erel Margalit

  	
   

  	
   

  
	
  Name: Erel Margalit

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  JERUSALEM VENTURE PARTNERS ENTREPRENEURS FUND III,
  L.P.

  	
   

  
	
   

  	
   

  
	
  By: 
  Jerusalem Partners III, L.P., its General Partner

  	
   

  
	
  By: 
  Jerusalem Venture Partners Corporation, its General Partner

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/Erel Margalit

  	
   

  	
   

  
	
  Name: Erel Margalit

  	
   

  

 

16

 

[Signature Page to Fourth Amended and Restated Stockholders
Agreement]

 

	
  JERUSALEM VENTURE PARTNERS IV, L.P.

  	
   

  
	
  By: 
  Jerusalem Partners IV, L.P., its General Partner

  	
   

  
	
  By:  JVP Corp
  IV, its General Partner

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/Erel Margalit

  	
   

  	
   

  
	
  Name: Erel Margalit

  	
   

  
	
   

  	
   

  
	
  JERUSALEM VENTURE PARTNERS IV (Israel), L.P.

  	
   

  
	
   

  	
   

  
	
  By: 
  Jerusalem Partners IV - Venture Capital, L.P.,  its General Partner

  	
   

  
	
  By:

  	
  JVP Corp IV, its General Partner

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/Erel Margalit

  	
   

  	
   

  
	
  Name: Erel Margalit

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  JERUSALEM VENTURE PARTNERS IV-A, L.P.

  	
   

  
	
   

  	
   

  
	
  By: 
  Jerusalem Venture Partners IV, L.P., 
  its General Partner

  	
   

  
	
  By:  JVP Corp
  IV, its General Partner

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/Erel Margalit

  	
   

  	
   

  
	
  Name: Erel Margalit

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  JERUSALEM VENTURE PARTNERS ENTREPRENEURS FUND IV,
  L.P.

  	
   

  
	
   

  	
   

  
	
  By: 
  Jerusalem Partners IV, L.P., its General Partner

  	
   

  
	
  By:  JVP Corp
  IV, its General Partner

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/Erel Margalit

  	
   

  	
   

  
	
  Name: Erel Margalit

  	
   

  
					

 

17

 

[Signature Page to Fourth Amended and Restated Stockholders
Agreement]

 

	
  WORLDVIEW TECHNOLOGY PARTNERS III, L.P.

  	
   

  
	
   

  	
   

  
	
  WORLDVIEW TECHNOLOGY INTERNATIONAL III, L.P.

  	
   

  
	
   

  	
   

  
	
  WORLDVIEW STRATEGIC PARTNERS III, L.P.

  	
   

  
	
   

  	
   

  
	
  WORLDVIEW III CARRIER FUND, L.P.

  	
   

  
	
   

  	
   

  
	
  By:

  	
  Worldview Capital III, L.P., its General Partner

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/James Wei

  	
   

  	
   

  
	
   

  	
   

  
	
  Name:

  	
  James Wei

  	
   

  	
   

  
	
  Title:

  	
  Member

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  WORLDVIEW TECHNOLOGY PARTNERS IV, L.P.

  	
   

  
	
   

  	
   

  
	
  WORLDVIEW TECHNOLOGY INTERNATIONAL IV, L.P.

  	
   

  
	
   

  	
   

  
	
  WORLDVIEW STRATEGIC PARTNERS IV, L.P.

  	
   

  
	
   

  	
   

  
	
  By:

  	
  Worldview Capital IV, L.P., its General Partner

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/James Wei

  	
   

  	
   

  
	
   

  	
   

  
	
  Name:

  	
  James Wei

  	
   

  	
   

  
	
  Title:

  	
  Member

  	
   

  	
   

  
							

 

18

 

[Signature Page to Fourth Amended and Restated Stockholders
Agreement]

 

	
  BCP CAPITAL, L.P.

  	
   

  
	
   

  	
   

  
	
  By:  BCP
  General LLC, its General Partner

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/Steven D. Brooks

  	
   

  	
   

  
	
  Name: Steven D. Brooks

  	
   

  
	
  Title:  Managing Director

  	
   

  
	
   

  	
   

  
	
  BCP CAPITAL QPF, L.P.

  	
   

  
	
   

  	
   

  
	
  By:  BCP
  General LLC, its General Partner

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/Steven D. Brooks

  	
   

  	
   

  
	
  Name: Steven D. Brooks

  	
   

  
	
  Title:  Managing Director

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  BCP AFFILIATES FUND LLC

  	
   

  
	
   

  	
   

  
	
  By:  BCP
  Capital Management LLC, its Manager

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/Steven D. Brooks

  	
   

  	
   

  
	
  Name: Steven D. Brooks

  	
   

  
	
  Title:  Managing Director

  	
   

  

 

19

 

[Signature Page to Fourth Amended and Restated Stockholders
Agreement]

                                                

	
  BOULDER VENTURES IV, L.P.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/Andrew E. Jones

  	
   

  	
   

  
	
  Name:  Andrew E. Jones

  	
   

  
	
  Title:  General Partner

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  BOULDER VENTURES IV (ANNEX), L.P.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/Andrew E. Jones

  	
   

  	
   

  
	
  Name:  Andrew E. Jones

  	
   

  
	
  Title:  General Partner

  	
   

  

 

20

 

[Signature Page to Fourth Amended and Restated Stockholders
Agreement]

 

	
  NAS PARTNERS I L.L.C.

  	
   

  
	
   

  	
   

  
	
  By:    Nassau Capital LLC, its
  General Partner

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/Randall A. Hack

  	
   

  	
   

  
	
  Name: 
  Randall A. Hack

  	
   

  
	
  Title: 
  Managing Member

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  NASSAU CAPITAL PARTNERS IV L.P.

  	
   

  
	
   

  	
   

  
	
  By:    Nassau Capital LLC, its
  General Partner

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/Randall A. Hack

  	
   

  	
   

  
	
  Name: 
  Randall A. Hack

  	
   

  
	
  Title: 
  Managing Member

  	
   

  

 

21

 

[Signature Page to Fourth Amended and Restated Stockholders
Agreement]

 

	
  BNP EUROPE TELECOM & MEDIA FUND II, LP

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/Shawna Morehouse

  	
   

  	
   

  
	
  Name: Jennifer Fischetti and Richard Hastings

  	
   

  
	
  Title: Authorized Signatories

  	
   

  
	
  By: General Business, Finance and Investment Ltd.,
  its General Partner and

  	
   

  
	
  By: Commerce Advisory Services Ltd, as Director and
  Partnership Secretary

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  NATIO VIE DEVELOPPEMENT 3, FCPR

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/Bernard d’Hotelans

  	
   

  	
   

  
	
  Name:

  	
  Bernard d’Hotelans

  	
   

  	
   

  
	
  Title:

  	
  Directeur Associe

  	
   

  	
   

  
						

 

22

 

[Signature Page to Fourth Amended and Restated Stockholders
Agreement]

 

	
  CISCO SYSTEMS CAPITAL CORPORATION

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
				

 

23

 

[Signature
Page to Fourth Amended and Restated Stockholders Agreement]

 

 

	
  By:

  	
  /s/David Schaeffer

  	
   

  	
   

  
	
  Name:

  	
  David Schaeffer

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  THE SCHAEFFER DESCENDENTS TRUST

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/Ruth Schaeffer

  	
   

  	
   

  
	
  Name:

  	
  Ruth Schaeffer

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Cogent
  Communications Group, Inc.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/David Schaeffer

  	
   

  	
   

  
	
  Name:

  	
  David Schaeffer

  	
   

  	
   

  
	
  Title: Chief Executive Officer

  	
   

  
							

 

24

 

[Signature Page to Fourth Amended
and Restated Stockholders Agreement]

 

	
  UFO COMMUNICATIONS, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/Charles Schoenhoeft

  	
   

  	
   

  
	
  Name:

  	
  Charles Schoenhoeft

  	
   

  	
   

  
	
  Title: Chief Executive Officer

  	
   

  
					

 

25

 

[Signature Page to Fourth Amended and Restated Stockholders
Agreement]

 

	
  PALADIN CAPITAL PARTNERS FUND, L.P.

  	
   

  
	
  By:

  	
  Paladin General Holdings, LLC

  Its General Partner

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/Michael R. Steed

  	
   

  	
   

  
	
  Name: 
  Michael R. Steed

  	
   

  
	
  Title: 
  President

  	
   

  
	
   

  	
   

  
	
  Address:

  	
  2001 Pennsylvania Avenue

  	
   

  
	
   

  	
  Suite 400

  	
   

  
	
   

  	
  Washington, D.C. 
  20006

  	
   

  
	
  Telephone:  (202) 293-5590

  	
   

  
	
  Facsimile:  (202) 293-5548

  	
   

  
	
   

  	
   

  
	
  WORLDWIDE INVESTMENTS, LLC

  	
   

  
	
   

  	
   

  
	
  By: 
  Worldwide Assets, Inc., its Sole Member

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/Frank J. Hannah

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
	
  Address:

  	
  Worldwide Investments, LLC

  	
   

  
	
   

  	
  c/o Worldwide Assets, Inc.

  	
   

  
	
   

  	
  P.O. Box 27740

  	
   

  
	
   

  	
  Las Vegas, NV 89126

  	
   

  
	
  Telephone:

  	
   

  	
   

  	
   

  
	
  Facsimile:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  2001 PENN. AVE. INVESTMENTS, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/Michael R. Steed

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
	
  Address:

  	
  2001 Pennsylvania Avenue

  	
   

  
	
   

  	
  Suite 400

  	
   

  
	
   

  	
  Washington, DC 
  20006

  	
   

  
	
  Telephone:

  	
   

  	
   

  	
   

  
	
  Facsimile:

  	
   

  	
   

  	
   

  
													

 

26

 

[Signature Page to Fourth Amended and Restated Stockholders
Agreement]

 

	
  KLINE HAWKES PACIFIC, L.P.

  	
   

  
	
   

  	
   

  
	
  By:  Kline
  Hawkes Pacific Advisors, LLC, its General Partner

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/Jay Ferguson

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Member

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  KLINE HAWKES PACIFIC FRIENDS FUND, LLC

  	
   

  
	
   

  	
   

  
	
  By: Kline Hawkes Pacific Advisors, LLC, its Managing
  Member

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/Jay Ferguson

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Member

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  BROADMARK CAPITAL, LLC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/Joseph L. Schocken

  	
   

  	
   

  
	
  Name:

  	
  Joseph L. Schocken

  	
   

  	
   

  
	
  Title:

  	
  President

  	
   

  	
   

  
	
   

  	
   

  
	
  UFO COMMUNICATIONS, INC.

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
							

 

27

 

Schedule
I

 

Cisco Systems Capital Corporation

David Schaeffer

Ruth E. Schaeffer, Trustee of the Schaeffer Descendents Trust

Denise Shen

Barry Morris

Scott Welker

Edward Lu

Bradley Griggs

Scott Stewart

Thaddeus Weed

C Blair Partners, LP  C. Blair Partners
II, LP  C. Blair Fund, Ltd.

 

	
  BNP Europe Telecom & Media Fund II, LP

  	
   

  	
  c/o CIBC Financial Center

  11 Dr. Roy’s Drive, 3rd Floor

  P.O. Box 694 GT

  Grand Cayman

  Cayman Islands, B.W.I.

  
	
  Natio vie Developpement 3, FCPR

  	
   

  	
  BNP Private Equity

  32, boulevard Haussman

  75009 Paris

  France

  
	
  Jerusalem Venture Partners III (Israel), L.P.

  Jerusalem Venture Partners IV (Israel), L.P.

  	
   

  	
  Jerusalem Technology Park

  Building One

  Mahla, Jerusalem 91847

  Attn: Erel Margalit

  
	
  Jerusalem Venture Partners III, L.P.

  Jerusalem Venture Partners Entrepreneurs Fund III, L.P.

  Jerusalem Venture Partners IV, L.P.

  Jerusalem Venture Partners IV-A, L.P.

  Jerusalem Venture Partners Entrepreneurs Fund IV, L.P.

  	
   

  	
  666 Fifth Avenue

  Suite 195

  New York, NY 10103

  
	
  Oak Investment Partners IX, LP

  Oak IX Affiliates Fund, LP

  Oak IX Affiliates Fund-A, LP

  	
   

  	
  One Gorham Island

  Westport, CT 06880

  Attn: Ed Glassmeyer

  
	
  Worldview Technology Partners III, LP

  Worldview Technology  International
  III, LP

  Worldview Strategic Partners III, LP

  	
   

  	
  435 Tasso Street #120

  Palo Alto, CA 94301

  

 

28

 

	
  Worldview III Carrier Fund, LP

  	
   

  	
   

  
	
  Boulder Ventures IV, LP

  Boulder Ventures IV (Annex), LP

  	
   

  	
  4750 Owings Mills Blvd.

  Owings Mills, MD 21117

  Attn:  Andy Jones

  
	
  Nassau Capital Partners IV, LP

  NAS Partners I, LLC

  	
   

  	
  Capstone Capitl L.L.C.

  4700 Province Line Road

  Princeton, NJ  08540

  Attn:  Randall A. Hack

  
	
  BCP Capital, L.P.

  BCP Capital QPF, L.P.

  BCP Affiliates Fund Llc

  	
   

  	
  BCP Capital Management LLC

  One Maritime Plaza, Suite 2525

  San Francisco, CA  94111Attn:

  David Kapnick

  
	
  Paladin Capital Partners Fund, L.P.

  	
   

  	
  2001 Pennsylvania Avenue NW

  Suite 400

  Washington, D.C.  20006

  
	
  Worldwide Investments, LLC

  	
   

  	
  Worldwide Investments, LLC

  c/o Worldwide Assets, Inc.

  P.O. Box 27740

  Las Vegas, NV 89126

  
	
  2001 Penn. Ave. Investments, LLC

  	
   

  	
  2001 Pennsylvania Avenue, Suite

  400

  Washington, DC 20006

  
	
  Kline Hawkes Pacific, L.P.

  	
   

  	
  11726 San Vicente Blvd., Suite 300

  Los Angeles, CA  90049

  
	
  Kline Hawkes Pacific Friends Fund, LLC

  	
   

  	
  11726 San Vicente Blvd., Suite 300

  Los Angeles, CA  90049

  
	
  Broadmark Capital

  	
   

  	
  2800 One Union Square

  600 University Street

  Seattle, WA 98101

  
	
  UFO Communications, Inc.

  	
   

  	
  60 Federal St, Suite 304

  San Francisco, CA 94107

  
	
  Comdisco, Inc.

  	
   

  	
   

  
	
  ACON Venture Partners, LP

  	
   

  	
   

  
	
  Clipperbay & Co.

  	
   

  	
   

  
	
  Covestco-Venture, LLC

  	
   

  	
   

  
	
  2M Technology Ventures, L.P.

  	
   

  	
   

  

 

Paul Johnson

Spencer Punter

Scappoose Portland, LLC

Brian Rich

Constantine Scontras

 

29

 

David Steinberg

Raj Mehra

Edward Pollack

Brooke Coburn

Colin Stern

Robert Nabholz

Rafi Gidron

Robert Barron

Louis E. Martinage
R. Brad Kummer

University of Maryland Foundation for UMBC

Friedman Kaplan Seiler & Adelman LLP

Jeff Barrows

Jim Dertzbaugh

Gordon P. Griggs, Trustee, Declaration of Trust of Gordon P. Griggs

Brian Griggs and Melissa Griggs, Trustees for Griggs Family Trust 

Jeffrey Allen Knepp

Kevin Pavuk

Melvin Young

Andrew Morrison

Bridget Oppenheimer

Keith Steinberg

Samuel Parker

Kevin Gallagher

Karen Chow

Michael Van Vleck

Behdad Eghbali

Paul Hauser

Matthew Whalen

Hans Wittich

David J. Daigle

Larry Collins

John Leone

Dave Diller

William Currer

Kenneth Klamm

David Ordonio

Jeffrey Megrue

H. Helen Lee

Comdisco, Inc.

Applegreen Capital, Inc.

Clipperbay & Co.

 

30

 

Schedule
II

 

COGENT COMMUNICATIONS
GROUP, INC.

 

INSTRUMENT OF ACCESSION

 

The undersigned,
                                    ,
as a condition precedent to becoming the owner or holder of record of
                                    
(            )
shares of the Common Stock, par value $.001 per share, of Cogent Communications
Group, Inc., a Delaware corporation (the “Company”), hereby agrees to
become a Purchaser party to and bound by that certain Fourth Amended and
Restated Stockholders Agreement dated as of
                      ,
2004 by and among the Company and other stockholders of the Company.  This Instrument of Accession shall take
effect and shall become an integral part of the said Second Amended and
Restated Stockholders Agreement immediately upon execution and delivery to the
Company of this Instrument.

 

IN WITNESS WHEREOF, this INSTRUMENT OF ACCESSION has
been duly executed by or on behalf of the undersigned, as a sealed instrument
under the laws of the State of Delaware, as of the date below written.

 

 

	
   

  	
  Signature:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Print Name)

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Accepted:

  
	
   

  	
   

  
	
   

  	
  COGENT COMMUNICATIONS GROUP , INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
									

 

31

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