Document:

exhibit10-1.htm

  

  

  

Exhibit 10.1

AMENDMENT NO. 1 TO CREDIT AGREEMENT

 

This AMENDMENT NO. 1 TO CREDIT AGREEMENT, dated as of March 14, 2011 (the “Amendment”), is entered into by and among Applied Natural Gas Fuels, Inc., a Nevada corporation (the “Borrower”), the other persons designated as “Loan Parties” on the signature pages hereto (the “Loan Parties”), the persons designated as “Lenders” on the signature pages hereto (the “Lenders”) and Fourth Third LLC, a Delaware limited liabililty company, as agent for the Lenders (in such capacity, the “Agent”) and as a Lender.

 

WHEREAS, Borrower, the other Loan Parties, Lenders (as defined therein) and Agent are party to a certain Credit Agreement, dated as of March 24, 2010 (the “Credit Agreement”; and

 

WHEREAS, Borrower has requested that Agent and Lenders make an additional loan to permit Borrower to finance the purchases of certain equipment; and

 

WHEREAS, Agent and Lenders are willing to agree to such request and enter into this Amendment upon the terms and conditions provided herein.

 

NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants herein contained, Borrower, the other Loan Parties, Lenders and Agent agree as follows:

 

SECTION 1.

DEFINED TERMS AND SECTIONS

Capitalized terms set forth herein shall have the meanings when used herein as set forth in the Credit Agreement.  Section references used herein shall, unless otherwise expressly provided, be deemed to be references to Sections of the Credit Agreement.

SECTION 2.

AMENDMENTS

Subject to the satisfaction of the conditions to effectiveness referred to in Section 3 below, Borrower, the other Loan Parties, Lenders and Agent agree that the Credit Agreement is hereby amended as follows:

 

2.1           Definitions.

 

(a)           New Definitions.  The following definitions shall be added to Section 1.1 of the Credit Agreement in the appropriate alphabetical order.

 

“Amendment No. 1” means the Amendment No. 1 to Credit Agreement, dated as of March 14, 2011, made by the parties hereto, amending this Agreement.

 

“Amendment No. 1 Closing Date” means that date on which Medley disburses the Medley Loan upon satisfaction of the conditions precedent thereto set forth in Amendment No. 1.

 

“Capital Reserve” means a sum in cash equal to $500,000 constituting additional Collateral to be used as provided in Section 2.3.4.

 

  

  

  

“Capital Reserve Account” means a non-interest bearing deposit account opened by the Borrower in its name at a bank selected by or acceptable to Agent over which, by tri-party agreement with the depository bank and the Borrower, Agent shall be given sole dominion and control.

 

“Medley” means Medley Capital Corporation, a Delaware corporation.

 

“Medley Loan” means the loan in the amount of the Medley Loan Commitment made pursuant to Section 2.1.3 of this Agreement on the Amendment No. 1 Closing Date.

 

“Medley Loan Commitment” means the commitment of Medley to make the Medley Loan to Borrower in the principal amount of $5,000,000 on the Amendment No. 1 Loan Closing Date.

 

“Medley Loan Purposes” means the following purposes, in respect of the use of the proceeds of the Medley Loan:  (i) to fund the Capital Reserve; (ii) to finance the acquisition of the New Equipment; (iii) to pay the origination fee owing to Medley and other closing costs associated with the closing of the Medley Loan; and (iv) as to any remainder, for corporate purposes of the Borrower not in contravention of any terms of this Agreement.

 

“New Equipment” means the equipment listed on Schedule A to Amendment No. 1.

 

(b)           Amended Definitions.  The following modifications shall be made to certain existing defined terms in Section 1.1 as follows:

 

In “Collateral,” add at its end:

 

The term “Collateral” shall also extend to and include the Capital Reserve and all New Equipment, from and after the Amendment No. 1 Closing Date.

 

In “Lenders,” add at its end:

 

The term “Lenders” shall also extend to and include Medley from and after the Amendment No. 1 Closing Date.

 

In “Loan Commitments” add at its end:

 

The term “Loan Commitment” shall also extend to and include the Medley Loan Commitment from and after the Amendment No. 1 Closing Date.

 

In “Loans,” add at its end:

 

The term “Loans,” shall also extend to and include the Medley Loan from and after the Amendment No. 1 Closing Date.

 

2.2           Medley Loan.  There shall be added to Section 2 of the Credit Agreement a new Section 2.1.3, to read as follows:

 

2.1.3           Medley Loan.

 

On the terms and subject to the conditions of this Agreement, Medley, acting severally and for itself alone, agrees to lend to Borrower on the Amendment No. 1 Closing Date the entire amount of the Medley Loan Commitment, after which the Medley Loan Commitment shall terminate, and no portion of the Medley

 

  

  

  

Loan may be re-borrowed once repaid.  The proceeds of the Medley Loan shall be used only for Medley Loan Purposes.  Without limitation of the foregoing Agent shall have the right to require the Borrower from time to time to account to Agent for the use of the proceeds of the Medley Loan, particularly in relation to the acquisition of the New Equipment, all of which New Equipment the Borrower agrees to acquire not later than 360 days from the Amendment No. 1 Closing Date.  In addition to the foregoing:

 

(a)           Interest.  Notwithstanding any of Section 2.3.1 to the contrary, Borrower agrees to pay cash interest on the unpaid principal amount of the Medley Loan for the period commencing on the Amendment No. 1 Closing Date until such Loan is paid in full at a per annum rate equal to thirteen percent (13.0%) simple interest, provided that at any time that an Event of Default exists, at the option of the Agent or if requested the Required Lenders, the aforesaid interest rate shall increase to the Default Rate, as provided in, and subject to the terms of, Section 2.3.1.  Interest on the Medley Loan shall be due and payable, in cash, quarterly in arrears, commencing on April 1, 2011, and continuing on the first day of each calendar quarter thereafter, provided that, on the Amendment No. 1 Closing Date, the Borrower shall remit to Medley an interest prepayment through March 31, 2011, calculated as if the Medley Loan were disbursed on March 1, 2011 (regardless of the actual date of its disbursement).

 

(b)           Prepayments.  The Medley Loan may be voluntarily prepaid in accordance with, and subject to, Section 2.4.1, provided that any voluntary prepayments of the Loans must be made, first, to the Medley Loan, until it is Paid in Full, before being made to any other Loan.  The Medley Loan shall also be subject to mandatory prepayment, as provided in, and subject to, Section 3.4.2 and Section 2.4.3, provided that all mandatory prepayments shall be applied, first, to the Medley Loan, until it is Paid in Full, before being made to any other Loan.

 

(c)           Repayment.  The outstanding principal balance of the Medley Loan shall be Paid in Full, on the Maturity Date, unless sooner accelerated pursuant to Section 8.2.

 

(d)           Origination Fee.  On the Amendment No. 1 Closing Date, Medley shall receive from the Borrower an origination fee equal to 2% of the Medley Loan Commitment, which fee shall be fully earned and non-refundable once paid.

 

2.3           Interest Payments Generally.  There shall be added to Section 2.3.2 of the Credit Agreement at the end thereof the following:

 

Notwithstanding the foregoing, however, commencing on April 1, 2011, and continuing thereafter, interest accrued on each Loan, other than the Castlerigg A Loan, shall be due and payable in cash quarterly in arrears on the first day of each calendar quarter (for the preceding calendar quarter or portion thereof).

 

2.4           Capital Reserve.  There shall be added to Section 2.3 a new Section 2.3.4, to read as follows:

 

  

  

  

2.3.4           Capital Reserve.  By not later than the Amendment No. 1 Closing Date, Borrower shall have established the Capital Reserve Account and funded the Capital Reserve with a portion of the proceeds of the Medley Loan.  Agent shall have sole and exclusive dominion and control over the Capital Reserve Account and the Capital Reserve at all times.  Upon any Event of Default, whether in regard to the payment of interest on the Loans or otherwise, Agent may, and at the request of the Required Lenders, Agent shall, use funds on deposit in the Capital Reserve to pay any obligations then due and owing to Agent or the Lenders but unpaid by the Borrower in accordance with the provisions of Section 2.6.2(b), provided that the application thereof shall not constitute a cure or waiver of any Event of Default then existing in regard thereto.  The Capital Reserve shall at all times constitute additional Collateral pending its use as provided hereinabove.  Notwithstanding the foregoing, however, unless an Event of Default has occurred which is then continuing, the Capital Reserve (or so much thereof as is then existing) shall be subject to release upon the happening of the events and in the amounts specified below:  (1) if Borrower’s EBITDA, determined for its 2011 fiscal year from its annual, audited financial statements, is at least $5,000,000, then, an amount equal to 50% of the Capital Reserve then existing shall be returned to Borrower, and (2) if Borrower has complied with clause (1) above, and received the portion of the Capital Reserve referenced therein, then, if Borrower’s EBITDA, measured on a fiscal quarter basis, for any fiscal quarter ending subsequent to the end of Borrower’s 2011 fiscal year, is at least $1,500,000, the remainder of the Capital Reserve shall be returned to Borrower, provided that no such return shall be made pursuant to this clause (2) any sooner then September 11, 2012 regardless when such quarterly EBITDA amount is achieved; provided, further, that, any return of the Capital Reserve shall be conditioned upon the understanding that the Borrower will use the monies returned only to finance the purchase of (or reimburse itself from funds expended on the purchase of) machinery and equipment for use in its business with any remainder being used for proper corporate purposes consistent with the terms of this Agreement, that Borrower will keep records of such expenditures, and that Borrower will provide Agent with an accounting of such expenditures as and when requested by Agent from time to time.

 

2.5           Waterfall Adjustment.  Section 2.6.2(b), clause (iv), of the Credit Agreement shall be amended by and restated in its entirety to read as follows (new language is highlighted in bold type):

 

(iv)           FOURTH, to the payment of all principal then owing in respect of the Medley Loan, until it is Paid in Full, then, the Castlerigg A Loan, until it is Paid in Full, and then, to the payment of all principal in respect of the Loans, but for the Castlerigg A Loan and the Medley Loan, on a pari passu basis, pro rata based on the proportion which each Loan then bears to the aggregate amount of the Loans, and with sharing between Lenders on each Loan to be pro rata based on each Lender’s Pro Rata Share thereof, until Paid in Full; and

 

2.6           Financial Covenants.

 

(a)           Section 7.13.1 (Fixed Charge Coverage Ratio) shall be amended by deleting in its entirety the existing table set forth therein and replacing it with the following table:

 

  

  

  

 

 

	
Computation Period Ending

	
Amount

	
June 30, 2011

	
N/A

	
September 30, 2011

	
N/A

	
December 31, 2011

	
1.0:1

	
March 31, 2012 and thereafter

	
1.10:1

(b)           Section 7.13.2 (EBITDA) shall be amended by deleting in its entirety the existing table set forth therein and replacing it with the following table:

 

	
Computation Period Ending

	
Amount

	
March 31, 2011

	
$200,000

	
June 30, 2011

	
$300,000

	
September 30, 2011

	
$500,000

	
December 31, 2011

	
$600,000

	
March 31, 2012 and thereafter

	
$750,000

and adding thereto at the end thereof:

 

As used in this Section 7.13.2, “Computation Period” shall mean each Fiscal Quarter ending on the date prescribed above.

 

(c)           Section 7.13.3 (Capital Expenditures) shall be amended by adding thereto at the end thereof, after the existing table, this sentence:

 

In determining the Borrower’s compliance with the foregoing covenant, any Capital Expenditures that are financed with the proceeds of the Medley Loan shall be excluded.

 

SECTION 3.

CONDITIONS TO EFFECTIVENESS

 

The amendments set forth hereinabove shall become effective retroactive to the Closing Date (the “Effective Date”) provided that the following conditions are satisfied in full:

 

(a)           Agent shall have received one or more counterparts of this Amendment executed and delivered by Borrower, the other Loan Parties, Agent and Lenders;

 

(b)           The Capital Reserve Account shall have been established, as provided above.

 

(c)           Medley shall have been paid its origination fee and prepaid interest amount, each, as provided above.

 

(d)           First Community Financial, a Division of Pacific Western Bank, and successor to Greenfield in respect of the Greenfield Debt, the Greenfield Debt Accounts and the Greenfield Intercreditor Agreement, shall have consented to the Medley Loan on terms acceptable to Agent.

 

  

  

  

(e)           no Default or Event of Default is continuing or would result after giving effect to this Amendment; and

 

(f)           all representations and warranties of the Loan Parties contained in this Amendment and in the Credit Agreement shall be true and correct in all material respects as of the date hereof and as of the Effective Date, except to the extent such representations and warranties relate to a specific date.

 

SECTION 4.

NO WAIVER; LIMITATION ON SCOPE

 

(a)           Except as expressly amended hereby, all of the representations, warranties, terms, covenants and conditions of the Loan Documents shall remain in full force and effect in accordance with their respective terms.  The amendments set forth herein shall be limited precisely as provided for herein and shall not be deemed to be waivers of, amendments of, consents to or modifications of any term or provision of the Loan Documents or any other document or instrument referred to therein or of any transaction or further or future action on the part of Borrower or any other Loan Party requiring the consent of Agent or Lenders except to the extent specifically provided for herein.

 

SECTION 5.

MISCELLANEOUS

 

(a)           Borrower and the other Loan Parties hereby represent and warrant that this Amendment has been duly authorized and executed by Borrower and each of the other Loan Parties and that the Credit Agreement, as amended by this Amendment, is the legal, valid and binding obligation of Borrower and the other Loan Parties party thereto, enforceable in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors rights generally and by general equitable principles (whether enforcement is sought by proceedings in law or in equity).

 

(b)           Each of Borrower and the other Loan Parties repeats and restates the representations and warranties of such Person contained in the Credit Agreement as of the date of this Amendment  and as of the Effective Date, except to the extent such representations and warranties relate to a specific date; provided that references to the Credit Agreement or “this Agreement” in such representations and warranties shall be deemed to be references to the Credit Agreement as amended pursuant to this Amendment.

 

(c)           Borrower agrees to pay on demand all of Agent’s and each Lender’s costs and expenses arising in connection with the execution and delivery of this Amendment.

 

(d)           Borrower and the other Loan Parties hereby ratify and confirm the Credit Agreement as amended hereby, and agree that, as amended hereby, the Credit Agreement remains in full force and effect.

 

(e)           Borrower and the other Loan Parties agree that the Loan Documents to which each such Person is a party remain in full force and effect (as amended hereby in the case of the Credit Agreement) notwithstanding the execution and delivery of this Amendment and that nothing contained in this Amendment shall constitute a defense to the enforcement of any Loan Document.

 

(f)           This Amendment may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all of which counterparts together shall constitute but one and the same instrument.

 

  

  

  

(g)           All references in the Loan Documents to the “Credit Agreement” and in the Credit Agreement as amended hereby to “this Agreement,” “hereof,” “herein” or the like shall mean and refer to the Credit Agreement as amended by this Amendment (as well as by all subsequent amendments, restatements, modifications and supplements thereto).

 

(h)           THIS AMENDMENT SHALL BE GOVERNED BY AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

 

(i)           This Amendment is a “Loan Document” and each of the provisions set forth in Section 10 (Miscellaneous) of the Credit Agreement applies to this Amendment to the same extent each such provision applies to any other Loan Document. Without limitation of the foregoing, each of the following provisions of the Credit Agreement is hereby incorporated herein by this reference with the same effect as though set forth in its entirety herein, mutatis mutandis, and as if “this Agreement” in any such provision read “this Amendment”: Section 10.2 (Notices), Section 10.10 (Captions), Section 10.13 (Severability), Section 10.14 (Entire Agreement), Section 10.15 (Successors and Assigns), Section 10.17 (Forum Selection; Consent to Jurisdiction) and Section 10.18 (Waiver of Jury Trial).

 

[SIGNATURE PAGES FOLLOW]

 

  

  

  

Exhibit 10.1

WITNESS the due execution hereof by the respective duly authorized officers of the undersigned as of the date first written above.

	  	
BORROWER:

	  	  
	  	
APPLIED NATURAL GAS FUELS, INC.

 

 

	  	
By:

	
/s/ Cem Hacioglu

	  	
Name:

	
Cem Hacioglu

	  	
Title:

	
President & CEO

	  	  
	  	
LOAN PARTIES:

 

	  	  
	  	
NEW EARTH LNG, LLC

 

 

	  	
By:

	
/s/ Cem Hacioglu

	  	
Name:

	
Cem Hacioglu

	  	
Title:

	
President & CEO

	  	  
	  	
APPLIED LNG TECHNOLOGIES, L.L.C.

 

By:NEW EARTH LNG, LLC, its Sole Member

 

 

	  	
By:

	
/s/ Cem Hacioglu

	  	
Name:

	
Cem Hacioglu

	  	
Title:

	
President & CEO

	  	  
	  	
FLEET STAR, INC.

 

 

	  	
By:

	
/s/ Cem Hacioglu

	  	
Name:

	
Cem Hacioglu

	  	
Title:

	
President & CEO

	  	  
	  	
ARIZONA LNG, L.L.C.

 

By:  NEW EARTH LNG, LLC, its Sole Member

 

 

	  	
By:

	
/s/ Cem Hacioglu

	  	
Name:

	
Cem Hacioglu

	  	
Title:

	
President & CEO

  

  

  

	  	
AGENT AND LENDERS:

	  	  
	  	
FOURTH THIRD LLC,

as Agent and a Lender

 

 

	  	
By:

	
/s/ Brooke Taube

	  	
Name:

	
Brooke Taube

	  	
Title:

	
Member, Managing

	  	  
	  	
CASTLERIGG PNG INVESTMENTS LLC,

as a Lender

 

 

	  	
By:

	
/s/ R. Gashler

	  	
Name:

	
R. Gashler

	  	
Title:

	
G. C.

	  	  
	  	
MEDLEY CAPITAL CORPORATION,

as a Lender

 

 

	  	
By:

	
/s/ Richard Allorto

	  	
Name:

	
Richard Allorto

	  	
Title:

	
Chief Financial Officer

  

  

  

Exhibit 10.1

Schedule A

 

Equipment Acquisition Schedule

 

 

	
Trailer #

	
Manufacturer

	
Model

	
10% Down Payment

	
Delivery Date

 

	
1

	
Cryogenic Vessel Alternatives

	
CVA-12.7K-70-TR-P

	
2/1/11

	
5/21/11

	
2

	
Cryogenic Vessel Alternatives

	
CVA-12.7K-70-TR-P

	
4/1/11

	
5/30/11

	
3

	
Cryogenic Vessel Alternatives

	
CVA-12.7K-70-TR-P

	
5/1/11

	
6/20/11

	
4

	
Cryogenic Vessel Alternatives

	
CVA-12.7K-70-TR-P

	
5/1/11

	
6/28/11

	
5

	
Cryogenic Vessel Alternatives

	
CVA-12.7K-70-TR-P

	
6/1/11

	
7/11/11

	
6

	
Cryogenic Vessel Alternatives

	
CVA-12.7K-70-TR-P

	
6/1/11

	
7/24/11

	
7

	
Cryogenic Vessel Alternatives

	
CVA-12.7K-70-TR-P

	
7/1/11

	
8/10/11

	
8

	
Cryogenic Vessel Alternatives

	
CVA-12.7K-70-TR-P

	
7/1/11

	
8/21/11

	
8

	
Cryogenic Vessel Alternatives

	
CVA-12.7K-70-TR-P

	
8/1/11

	
9/8/11

	
10

	
Cryogenic Vessel Alternatives

	
CVA-12.7K-70-TR-P

	
8/1/11

	
8/20/11

	  	  	  	  	  
	
ORCA

	  	  	  	  
	
1

	
Chart Inc.

	
ORCA LNG-3500

	
3/1/11

	
7/2/11

	
2

	
Chart Inc.

	
ORCA LNG-3500

	
TBD

	
TBDExhibit 10.1

 

INDEMNIFICATION AGREEMENT

 

THIS INDEMNIFICATION AGREEMENT (this “Agreement”) dated as of                                 , is made by and between Boingo Wireless, Inc., a Delaware corporation (the “Company”), and                            (“Indemnitee”); provided, that where Indemnitee is a member of the Board of Directors of the Company and is also a member or partner of a venture fund that is a stockholder of the Company, where the context permits, “Indemnitee” shall also include such venture fund stockholder (including its partners, members, officers, employees, agents, and each person who controls any of them or who may be liable within the meaning of Section 15 of the Securities Act of 1933, as amended, or Section 20 of the Securities Exchange Act of 1934, as amended) (the “Venture Fund”), and such Venture Fund shall also become a party to this Agreement.

 

RECITALS:

 

A.            The Company desires to attract and retain the services of highly qualified individuals as directors, officers, employees and agents.

 

B.            The Company’s bylaws (the “Bylaws”) require that the Company indemnify its directors, and empowers the Company to indemnify its officers, employees and agents, as authorized by the Delaware General Corporation Law, as amended (the “Code”), under which the Company is organized and such Bylaws expressly provide that the indemnification provided therein is not exclusive and contemplates that the Company may enter into separate agreements with its directors, officers and other persons to set forth specific indemnification provisions.

 

C.            Indemnitee does not regard the protection currently provided by applicable law, the Company’s governing documents and available insurance as adequate under the present circumstances, and the Company has determined that Indemnitee and other directors, officers, employees and agents of the Company may not be willing to serve or continue to serve in such capacities without additional protection.

 

D.            The Company desires and has requested Indemnitee to serve or continue to serve as a director, officer, employee or agent of the Company, as the case may be, and has proffered this Agreement to Indemnitee as an additional inducement to serve in such capacity.

 

E.             Indemnitee is willing to serve, or to continue to serve, as a director, officer, employee or agent of the Company, as the case may be, if Indemnitee is furnished the indemnity provided for herein by the Company.

 

F.             Indemnitee may have certain rights to indemnification and/or insurance provided by the Venture Fund, if any, which Indemnitee and the Venture Fund intend to be secondary to the primary obligation of the Company to indemnify Indemnitee as provided herein, with the Company’s acknowledgement and agreement to the foregoing being a material condition to Indemnitee’s willingness to serve on the Company’s Board of Directors.

 

 

AGREEMENT:

 

NOW THEREFORE, in consideration of the mutual covenants and agreements set forth herein, the parties hereto, intending to be legally bound, hereby agree as follows:

 

1.             Definitions.

 

(a)           Agent. For purposes of this Agreement, the term “agent” of the Company means any person who: (i) is or was a director, officer, employee or other fiduciary of the Company or a subsidiary of the Company; or (ii) is or was serving at the request or for the convenience of, or representing the interests of, the Company or a subsidiary of the Company, as a director, officer, employee or other fiduciary of a foreign or domestic corporation, partnership, joint venture, trust or other enterprise.

 

(b)           Expenses. For purposes of this Agreement, the term “expenses” shall be broadly construed and shall include, without limitation, all direct and indirect costs of any type or nature whatsoever (including, without limitation, all attorneys’, witness, or other professional fees and related disbursements, and other out-of-pocket costs of whatever nature), actually and reasonably incurred by Indemnitee in connection with the investigation, defense or appeal of a proceeding or establishing or enforcing a right to indemnification under this Agreement, the Code or otherwise, and amounts paid in settlement by or on behalf of Indemnitee, but shall not include any judgments, fines or penalties actually levied against Indemnitee for such individual’s violations of law. The term “expenses” shall also include reasonable compensation for time spent by Indemnitee for which he is not compensated by the Company or any subsidiary or third party (i) for any period during which Indemnitee is not an agent, in the employment of, or providing services for compensation to, the Company or any subsidiary; and (ii) if the rate of compensation and estimated time involved is approved by the directors of the Company who are not parties to any action with respect to which expenses are incurred, for Indemnitee while an agent of, employed by, or providing services for compensation to, the Company or any subsidiary.

 

(c)           Proceedings. For purposes of this Agreement, the term “proceeding” shall be broadly construed and shall include, without limitation, any threatened, pending, or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether brought in the right of the Company or otherwise and whether of a civil, criminal, administrative or investigative nature, and whether formal or informal in any case, in which Indemnitee was, is or will be involved as a party or otherwise by reason of: (i) the fact that Indemnitee is or was a director or officer of the Company; (ii) the fact that any action taken by Indemnitee or of any action on Indemnitee’s part while acting as director, officer, employee or agent of the Company; or (iii) the fact that Indemnitee is or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust, employee benefit plan or other enterprise, and in any such case described above, whether or not serving in any such capacity at the time any liability or expense is incurred for which indemnification, reimbursement, or advancement of expenses may be provided under this Agreement.

 

(d)           Subsidiary. For purposes of this Agreement, the term “subsidiary” means any corporation or limited liability company of which more than 50% of the outstanding voting

 

2

 

securities or equity interests are owned, directly or indirectly, by the Company and one or more of its subsidiaries, and any other corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise of which Indemnitee is or was serving at the request of the Company as a director, officer, employee, agent or fiduciary.

 

(e)           Independent Counsel. For purposes of this Agreement, the term “independent counsel” means a law firm, or a partner (or, if applicable, member) of such a law firm, that is experienced in matters of corporation law and neither presently is, nor in the past five (5) years has been, retained to represent: (i) the Company or Indemnitee in any matter material to either such party, or (ii) any other party to the proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term “independent counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.

 

2.             Agreement to Serve. Indemnitee will serve, or continue to serve, as a director, officer, employee or agent of the Company or any subsidiary, as the case may be, faithfully and to the best of his or her ability, at the will of such corporation (or under separate agreement, if such agreement exists), in the capacity Indemnitee currently serves as an agent of such corporation, so long as Indemnitee is duly appointed or elected and qualified in accordance with the applicable provisions of the Bylaws or other applicable charter documents of such corporation, or until such time as Indemnitee tenders his or her resignation in writing; provided, however, that nothing contained in this Agreement is intended as an employment agreement between Indemnitee and the Company or any of its subsidiaries or to create any right to continued employment of Indemnitee with the Company or any of its subsidiaries in any capacity.

 

The Company acknowledges that it has entered into this Agreement and assumes the obligations imposed on it hereby, in addition to and separate from its obligations to Indemnitee under the Bylaws, to induce Indemnitee to serve, or continue to serve, as a director, officer, employee or agent of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement in serving as a director, officer, employee or agent of the Company.

 

3.             Indemnification.

 

(a)           Indemnification in Third Party Proceedings. Subject to Section 10 below, the Company shall indemnify Indemnitee to the fullest extent permitted by the Code, as the same may be amended from time to time (but, only to the extent that such amendment permits Indemnitee to broader indemnification rights than the Code permitted prior to adoption of such amendment), if Indemnitee is a party to or threatened to be made a party to or otherwise involved in any proceeding, for any and all expenses, actually and reasonably incurred by Indemnitee in connection with the investigation, defense, settlement or appeal of such proceeding.

 

(b)           Indemnification in Derivative Actions and Direct Actions by the Company. Subject to Section 10 below, the Company shall indemnify Indemnitee to the fullest extent permitted by the Code, as the same may be amended from time to time (but, only to the extent that such amendment permits Indemnitee to broader indemnification rights than the Code

 

3

 

permitted prior to adoption of such amendment), if Indemnitee is a party to or threatened to be made a party to or otherwise involved in any proceeding by or in the right of the Company to procure a judgment in its favor, against any and all expenses actually and reasonably incurred by Indemnitee in connection with the investigation, defense, settlement, or appeal of such proceedings.

 

4.             Indemnification of Expenses of Successful Party. Notwithstanding any other provision of this Agreement, to the extent that Indemnitee has been successful on the merits or otherwise in defense of any proceeding or in defense of any claim, issue or matter therein, including the dismissal of any action without prejudice, the Company shall indemnify Indemnitee against all expenses actually and reasonably incurred in connection with the investigation, defense or appeal of such proceeding.

 

5.             Partial Indemnification. If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of any expenses actually and reasonably incurred by Indemnitee in the investigation, defense, settlement or appeal of a proceeding, but is precluded by applicable law or the specific terms of this Agreement to indemnification for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee is entitled.

 

6.             Advancement of Expenses. To the extent not prohibited by law, the Company shall advance the expenses incurred by Indemnitee in connection with any proceeding, and such advancement shall be made within twenty (20) days after the receipt by the Company of a statement or statements requesting such advances (which shall include invoices received by Indemnitee in connection with such expenses but, in the case of invoices in connection with legal services, any references to legal work performed or to expenditures made that would cause Indemnitee to waive any privilege accorded by applicable law shall not be included with the invoice) and upon request of the Company, an undertaking to repay the advancement of expenses if and to the extent that it is ultimately determined by a court of competent jurisdiction in a final judgment, not subject to appeal, that Indemnitee is not entitled to be indemnified by the Company. Advances shall be unsecured, interest free and without regard to Indemnitee’s ability to repay the expenses. Advances shall include any and all expenses actually and reasonably incurred by Indemnitee pursuing an action to enforce Indemnitee’s right to indemnification under this Agreement, or otherwise and this right of advancement, including expenses incurred preparing and forwarding statements to the Company to support the advances claimed. Indemnitee acknowledges that the execution and delivery of this Agreement shall constitute an undertaking providing that Indemnitee shall, to the fullest extent required by law, repay the advance if and to the extent that it is ultimately determined by a court of competent jurisdiction in a final judgment, not subject to appeal, that Indemnitee is not entitled to be indemnified by the Company. The right to advances under this Section shall continue until final disposition of any proceeding, including any appeal therein. This Section 6 shall not apply to any claim made by Indemnitee for which indemnity is excluded pursuant to Section 10(b).

 

7.             Notice and Other Indemnification Procedures.

 

(a)           Notification of Proceeding. Indemnitee will notify the Company in writing promptly upon being served with any summons, citation, subpoena, complaint, indictment,

 

4

 

information or other document relating to any proceeding or matter which may be subject to indemnification or advancement of expenses covered hereunder. The failure of Indemnitee to so notify the Company shall not relieve the Company of any obligation which it may have to Indemnitee under this Agreement or otherwise.

 

(b)           Request for Indemnification and Indemnification Payments. Indemnitee shall notify the Company promptly in writing upon receiving notice of any demand, judgment or other requirement for payment that Indemnitee reasonably believes to the subject to indemnification under the terms of this Agreement, and shall request payment thereof by the Company. Indemnification payments requested by Indemnitee under Section 3 hereof shall be made by the Company no later than sixty (60) days after receipt of the written request of Indemnitee. Claims for advancement of expenses shall be made under the provisions of Section 6 herein.

 

(c)           Application for Enforcement. In the event the Company fails to make timely payments as set forth in Sections 6 or 7(b) above, Indemnitee shall have the right to apply to any court of competent jurisdiction for the purpose of enforcing Indemnitee’s right to indemnification or advancement of expenses pursuant to this Agreement. In such an enforcement hearing or proceeding, the burden of proof shall be on the Company to prove by that indemnification or advancement of expenses to Indemnitee is not required under this Agreement or permitted by applicable law. Any determination by the Company (including its Board of Directors, stockholders or independent counsel) that Indemnitee is not entitled to indemnification hereunder, shall not be a defense by the Company to the action nor create any presumption that Indemnitee is not entitled to indemnification or advancement of expenses hereunder.

 

(d)           Indemnification of Certain Expenses. The Company shall indemnify Indemnitee against all expenses incurred in connection with any hearing or proceeding under this Section 7 unless the Company prevails in such hearing or proceeding on the merits in all material respects.

 

8.             Assumption of Defense. In the event the Company shall be requested by Indemnitee to pay the expenses of any proceeding, the Company, if appropriate, shall be entitled to assume the defense of such proceeding, or to participate to the extent permissible in such proceeding, with counsel reasonably acceptable to Indemnitee. Upon assumption of the defense by the Company and the retention of such counsel by the Company, the Company shall not be liable to Indemnitee under this Agreement for any fees of counsel subsequently incurred by Indemnitee with respect to the same proceeding, provided that Indemnitee shall have the right to employ separate counsel in such proceeding at Indemnitee’s sole cost and expense. Notwithstanding the foregoing, if Indemnitee’s counsel delivers a written notice to the Company stating that such counsel has reasonably concluded that there may be a conflict of interest between the Company and Indemnitee in the conduct of any such defense or the Company shall not, in fact, have employed counsel or otherwise actively pursued the defense of such proceeding within a reasonable time, then in any such event the fees and expenses of Indemnitee’s counsel to defend such proceeding shall be subject to the indemnification and advancement of expenses provisions of this Agreement.

 

5

 

9.             Insurance. To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers, employees, or agents of the Company or of any subsidiary (“D&O Insurance”), Indemnitee shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage available for any such director, officer, employee or agent under such policy or policies. If, at the time of the receipt of a notice of a claim pursuant to the terms hereof, the Company has D&O Insurance in effect, the Company shall give prompt notice of the commencement of such proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such policies.

 

10.          Exceptions.

 

(a)           Certain Matters. Any provision herein to the contrary notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement to indemnify Indemnitee on account of any proceeding with respect to (i) remuneration paid to Indemnitee if it is determined by final judgment or other final adjudication that such remuneration was in violation of law (and, in this respect, both the Company and Indemnitee have been advised that the Securities and Exchange Commission believes that indemnification for liabilities arising under the federal securities laws is against public policy and is, therefore, unenforceable and that claims for indemnification should be submitted to appropriate courts for adjudication, as indicated in Section 10(d) below); (ii) a final judgment rendered against Indemnitee for an accounting, disgorgement or repayment of profits made from the purchase or sale by Indemnitee of securities of the Company against Indemnitee or in connection with a settlement by or on behalf of Indemnitee to the extent it is acknowledged by Indemnitee and the Company that such amount paid in settlement resulted from Indemnitee’s conduct from which Indemnitee received monetary personal profit pursuant to the provisions of Section 16(b) of the Securities Exchange Act of 1934, as amended, or other provisions of any federal, state or local statute or rules and regulations thereunder; (iii) a final judgment or other final adjudication that Indemnitee’s conduct was in bad faith, knowingly fraudulent or deliberately dishonest or constituted willful misconduct (but only to the extent of such specific determination); or (iv) on account of conduct that is established by a final judgment as constituting a breach of Indemnitee’s duty of loyalty to the Company or resulting in any personal profit or advantage to which Indemnitee is not legally entitled. For purposes of the foregoing sentence, a final judgment or other adjudication may be reached in either the underlying proceeding or action in connection with which indemnification is sought or a separate proceeding or action to establish rights and liabilities under this Agreement.

 

(b)           Claims Initiated by Indemnitee. Any provision herein to the contrary notwithstanding, the Company shall not be obligated to indemnify or advance expenses to Indemnitee with respect to proceedings or claims initiated or brought by Indemnitee against the Company or its directors, officers, employees or other agents and not by way of defense, except (i) with respect to proceedings brought to establish or enforce a right to indemnification under this Agreement or under any other agreement, provision in the Bylaws or the Company’s Amended and Restated Certificate of Incorporation (the “Charter”) or applicable law, or (ii) with respect to any other proceeding initiated by Indemnitee that is either approved by the Board of

 

6

 

Directors or Indemnitee’s participation is required by applicable law. However, indemnification or advancement of expenses may be provided by the Company in specific cases if the Board of Directors determines it to be appropriate.

 

(c)           Unauthorized Settlements. Any provision herein to the contrary notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement to indemnify Indemnitee under this Agreement for any amounts paid in settlement of a proceeding effected without the Company’s written consent. Neither the Company nor Indemnitee shall unreasonably withhold consent to any proposed settlement; provided, however, that the Company may in any event decline to consent to (or to otherwise admit or agree to any liability for indemnification hereunder in respect of) any proposed settlement if the Company is also a party in such proceeding and determines in good faith that such settlement is not in the best interests of the Company and its stockholders.

 

(d)           Securities Act Liabilities. Any provision herein to the contrary notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement to indemnify Indemnitee or otherwise act in violation of any undertaking appearing in and required by the rules and regulations promulgated under the Securities Act of 1933, as amended (the “Act”), or in any registration statement filed with the SEC under the Act. Indemnitee acknowledges that paragraph (h) of Item 512 of Regulation S-K currently generally requires the Company to undertake in connection with any registration statement filed under the Act to submit the issue of the enforceability of Indemnitee’s rights under this Agreement in connection with any liability under the Act on public policy grounds to a court of appropriate jurisdiction and to be governed by any final adjudication of such issue. Indemnitee specifically agrees that any such undertaking shall supersede the provisions of this Agreement and to be bound by any such undertaking.

 

11.          Nonexclusivity; Priority of Payment and Survival of Rights.

 

(a)           The provisions for indemnification and advancement of expenses set forth in this Agreement shall not be deemed exclusive of any other rights which Indemnitee may at any time be entitled under any provision of applicable law, the Charter, Bylaws or other agreements, both as to action in Indemnitee’s official capacity and Indemnitee’s action as an agent of the Company, in any court in which a proceeding is brought, and Indemnitee’s rights hereunder shall continue after Indemnitee has ceased acting as an agent of the Company and shall inure to the benefit of the heirs, executors, administrators and assigns of Indemnitee. The obligations and duties of the Company to Indemnitee under this Agreement shall be binding on the Company and its successors and assigns until terminated in accordance with its terms. The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.

 

(b)           The Company hereby acknowledges that Indemnitee may have certain rights to indemnification, advancement of expenses and/or insurance provided by the Venture Fund, if any, and certain of its affiliates (collectively, the “Fund Indemnitors”).  To the extent a Venture Fund is a party to this Agreement, the Company hereby agrees (i) that the Company is

 

7

 

the indemnitor of first resort (i.e., its obligations to Indemnitee are primary and any obligation of the Fund Indemnitors to advance expenses or to provide indemnification for the same expenses or liabilities incurred by Indemnitee are secondary), (ii) that it shall be required to advance the full amount of expenses incurred by Indemnitee and shall be liable for the full amount of all Expenses, judgments, penalties, fines and amounts paid in settlement to the extent legally permitted and as required by the terms of this Agreement and the Charter or Bylaws of the Company (or any other agreement between the Company and Indemnitee), without regard to any rights Indemnitee may have against the Fund Indemnitors, and, (iii)  that it irrevocably waives, relinquishes and releases the Fund Indemnitors from any and all claims against the Fund Indemnitors for contribution, subrogation or any other recovery of any kind in respect thereof.  The Company further agrees that no advancement or payment by the Fund Indemnitors on behalf of Indemnitee with respect to any claim for which Indemnitee has sought indemnification from the Company shall affect the foregoing and the Fund Indemnitors shall have a right of contribution and/or be subrogated to the extent of such advancement or payment to all of the rights of recovery of Indemnitee against the Company.  The Company and Indemnitee agree that the Fund Indemnitors are express third party beneficiaries of the terms of this Section 11(b).

 

(c)           No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in his or her corporate status prior to such amendment, alteration or repeal. To the extent that a change in the Code, whether by statute or judicial decision, permits greater indemnification or advancement of expenses than would be afforded currently under the Charter, Bylaws and this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, by Indemnitee shall not prevent the concurrent assertion or employment of any other right or remedy by Indemnitee.

 

12.          Term. This Agreement shall continue until and terminate upon the later of: (a) five (5) years after the date that Indemnitee shall have ceased to serve as a director or and/or officer, employee or agent of the Company; or (b) one (1) year after the final termination of any proceeding, including any appeal then pending, in respect to which Indemnitee was granted rights of indemnification or advancement of expenses hereunder.

 

No legal action shall be brought and no cause of action shall be asserted by or in the right of the Company against an Indemnitee or an Indemnitee’s estate, spouse, heirs, executors or personal or legal representatives after the expiration of five (5) years from the date of accrual of such cause of action, and any claim or cause of action of the Company shall be extinguished and deemed released unless asserted by the timely filing of a legal action within such five-year period; provided, however, that if any shorter period of limitations is otherwise applicable to such cause of action, such shorter period shall govern.

 

13.          Subrogation. Except as provided in Section 11(b) above, in the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment

 

8

 

to all of the rights of recovery of Indemnitee (other than against any Fund Indemnitor), who, at the request and expense of the Company, shall execute all papers required and shall do everything that may be reasonably necessary to secure such rights, including the execution of such documents necessary to enable the Company effectively to bring suit to enforce such rights.

 

14.          Interpretation of Agreement. It is understood that the parties hereto intend this Agreement to be interpreted and enforced so as to provide indemnification to Indemnitee to the fullest extent now or hereafter permitted by law.

 

15.          Severability. If any provision of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever, (a) the validity, legality and enforceability of the remaining provisions of the Agreement (including without limitation, all portions of any paragraphs of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby; and (b) to the fullest extent possible, the provisions of this Agreement (including, without limitation, all portions of any paragraph of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested by the provision held invalid, illegal or unenforceable and to give effect to Section 14 hereof.

 

16.          Amendment and Waiver. No supplement, modification, amendment, or cancellation of this Agreement shall be binding unless executed in writing by the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

 

17.          Notice. Except as otherwise provided herein, any notice or demand which, by the provisions hereof, is required or which may be given to or served upon the parties hereto shall be in writing and, if by telegram, telecopy or telex, shall be deemed to have been validly served, given or delivered when sent, if by overnight delivery, courier or personal delivery, shall be deemed to have been validly served, given or delivered upon actual delivery and, if mailed, shall be deemed to have been validly served, given or delivered three (3) business days after deposit in the United States mail, as registered or certified mail, with proper postage prepaid and addressed to the party or parties to be notified at the addresses set forth on the signature page of this Agreement (or such other address(es) as a party may designate for itself by like notice). If to the Company, notices and demands shall be delivered to the attention of the Secretary of the Company.

 

18.          Governing Law. This Agreement shall be governed exclusively by and construed according to the laws of the State of Delaware, without application of the conflict of laws principles thereof.

 

19.          Counterparts. This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute but one and the same Agreement. Only one such counterpart need be produced to evidence the existence of this Agreement.

 

9

 

20.          Headings. The headings of the sections of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction hereof.

 

21.          Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements, understandings and negotiations, written and oral, between the parties with respect to the subject matter of this Agreement; provided, however, that this Agreement is a supplement to and in furtherance of the Charter, Bylaws, the Code and any other applicable law, and shall not be deemed a substitute therefor, and does not diminish or abrogate any rights of Indemnitee thereunder.

 

22.          Amendment and Restatement of Prior Agreement.  Upon the effectiveness of this Agreement, the Prior Agreement shall be amended and restated in its entirety and be of no further force and effect, and shall be superseded and replaced in its entirety by this Agreement.

 

10

 

IN WITNESS WHEREOF, the parties hereto have entered into this Agreement effective as of the date first above written.

 

	
 
    	
 
    	
BOINGO   WIRELESS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
INDEMNITEE
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    
	
 
    	
Address:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
VENTURE   FUND
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Venture   Fund:
    
	
 
    	
 
    	
By:
    
	
 
    	
 
    	
Its:
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
Address:
    	
 
    

 

SIGNATURE PAGE TO INDEMNIFICATION AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00186-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00186-of-00352.parquet"}]]