Document:

Exhibit 4.2

 

AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

 

THIS AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT (this “Agreement”) is made and entered into as of June 27, 2006 by and among Boingo Wireless, Inc. (the “Company”), and those stockholders of the Company identified on the signature pages attached hereto (the “Preferred Holders”).

 

WHEREAS, each of the Preferred Holders holds shares of the Company’s Series A Preferred Stock having a par value of $0.0001 per share (the “Series A Preferred Stock”), Series A-2 Preferred Stock having a par value of $0.0001 per share (the “Series A-2 Preferred Stock”), Series B Preferred Stock having a par value per share of $0.0001 (the “Series B Preferred Stock”), and/or Series C Preferred Stock having a par value per share of $0.0001 (the “Series C Preferred Stock”, together with the Series A Preferred, Series A-2 Preferred, and Series B Preferred the “Preferred Stock” and shares thereof being the “Preferred Shares”);

 

WHEREAS, certain of those Preferred Holders holding Series A Preferred Stock, Series A-2 Preferred Stock, and/or Series B Preferred Stock are parties with the Company to that certain Amended and Restated Registration Rights Agreement dated September 19, 2003 (the “Existing Agreement”); and

 

WHEREAS, those Preferred Holdings holding Series C Preferred Stock (the “Series C Purchasers”) are purchasing from the Company such Series C Preferred Stock pursuant to the terms of a Series C Preferred Stock Purchase Agreement dated the date hereof between the Company and the Series C Purchasers (the “Purchase Agreement”); and

 

WHEREAS, the Preferred Holders of Series A Preferred Stock, the Series A-2 Preferred Stock, and Series B Preferred Stock and the Company desire that the Series C Purchasers purchase the Company’s Series C Preferred Stock and the Series C Purchasers, as a condition to purchasing the Company’s Series C Preferred Stock, desire to enter into this Agreement; and

 

WHEREAS, as part of the transactions contemplated under the Purchase Agreement, the Preferred Holders holding Series A Preferred Stock, Series A-2 Preferred Stock, and/or Series B Preferred Stock and the Company wish to amend and restate the Existing Agreement in its entirety with the terms of this Agreement;

 

NOW THEREFORE, in consideration of the foregoing and the mutual promises and covenants set forth herein, the parties agree as follows:

 

1.             Certain Definitions.  As used in this Agreement, the following terms shall have the following respective meanings:

 

“Commission” shall mean the Securities and Exchange Commission, or any other federal agency at the time administering the Securities Act.

 

“Common Stock” shall mean the Common Stock, $.0001 par value, of the Company, as constituted as of the date of this Agreement.

 

Confidential

 

 

“Conversion Shares” shall mean shares of Common Stock issued upon conversion of the Preferred Shares.

 

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, or any similar federal statute, and the rules and regulations of the Commission thereunder, all as the same shall be in effect at the time.

 

“Registration Expenses” shall mean the expenses so described in Section 8.

 

“Restricted Stock” shall mean the Conversion Shares, excluding Conversion Shares which (a) have been registered under the Securities Act pursuant to an effective registration statement filed thereunder and disposed of in accordance with the registration statement covering them; (b) have been publicly sold pursuant to Rule 144 under the Securities Act; or (c) may be publicly sold pursuant to Rule 144(k) of the Securities Act.

 

“Securities Act” shall mean the Securities Act of 1933, as amended, or any similar federal statute, and the rules and regulations of the Commission thereunder, all as the same shall be in effect at the time.

 

“Selling Expenses” shall mean the expenses so described in Section 8.

 

2.             Restrictive Legend.  Each certificate representing Preferred Shares or Conversion Shares shall, except as otherwise provided in this Section 2 or in Section 3, be stamped or otherwise imprinted with a legend substantially in the following form:

 

“THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR ANY STATE SECURITIES LAWS AND MAY NOT BE TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS IT HAS BEEN REGISTERED UNDER SUCH ACT AND ALL SUCH APPLICABLE LAWS OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE.”

 

A certificate shall not bear such legend if in the opinion of counsel satisfactory to the Company the securities represented thereby may be publicly sold without registration under the Securities Act and any applicable state securities laws.

 

3.             Notice of Proposed Transfer.  Prior to any proposed transfer of any Preferred Shares or Conversion Shares (other than under the circumstances described in Sections 4, 5 or 6), the holder thereof shall give written notice to the Company of its intention to effect such transfer.  Each such notice shall describe the manner of the proposed transfer and, if requested by the Company, shall be accompanied by an opinion of counsel satisfactory to the Company to the effect that the proposed transfer may be effected without registration under the Securities Act and any applicable state securities laws, whereupon the holder of such stock shall be entitled to transfer such stock in accordance with the terms of its notice; provided, however, that no such opinion of counsel shall be required for a transfer to one or more partners or members of the  transferor (in the case of a transferor that is a partnership or a limited liability company, respectively) or to an affiliated corporation.  Each certificate for Preferred Shares or Conversion Shares transferred as above provided shall bear the legend set forth in Section 2, except that such

 

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certificate shall not bear such legend if (i) such transfer is in accordance with the provisions of Rule 144 (or any other rule permitting public sale without registration under the Securities Act) or (ii) the opinion of counsel referred to above is to the further effect that the transferee and any subsequent transferee (other than an affiliate of the Company) would be entitled to transfer such securities in a public sale without registration under the Securities Act.  The restrictions provided for in this Section 3 shall not apply to securities which are not required to bear the legend prescribed by Section 2 in accordance with the provisions of that Section.   No Preferred Shares or Conversion Shares, or any beneficial interest therein, shall be sold, assigned, transferred, pledged or otherwise disposed of unless and until the transferee thereof has agreed in writing for the benefit of the Company to take and hold such Preferred Shares or Conversion Shares subject to, and to be bound by, the terms of this Agreement.

 

4.             Required Registration.

 

(a)           (i)            At any time after the earliest of (A) six months after a registration statement covering a public offering of shares of Common Stock, in which the aggregate price paid for such shares shall be at least $30,000,000 and the price paid by the public for such shares shall be at least $3.57 per shares (“Qualified Offering”), shall have become effective and (B)                                  , 2009, the holders of Restricted Stock may request the Company to register under the Securities Act all or any portion of the shares of Restricted Stock held by such requesting holder or holders for sale in the manner specified in such notice, provided that the reasonably anticipated aggregate price to the public of such public offering would exceed $10,000,000.

 

(ii)           For purposes of this Section 4 and Sections 5, 6, 13(a) and 13(d), the term “Restricted Stock” shall be deemed to include the number of shares of Restricted Stock which would be issuable to a holder of Preferred Shares upon conversion of all Preferred Shares held by such holder at such time, provided, however, that the only securities which the Company shall be required to register pursuant hereto shall be shares of Common Stock, and provided, further, however, that, in any underwritten public offering contemplated by this Section 4 or Sections 5 and 6, the holders of Preferred Shares shall be entitled to sell such Preferred Shares to the underwriters for conversion and sale of the shares of Common Stock issued upon conversion thereof.

 

(b)           Following receipt of any notice under this Section 4, the Company shall immediately notify all holders of Restricted Stock from whom notice has not been received and shall use its best efforts to register under the Securities Act, for public sale in accordance with the method of disposition specified in such notice from requesting holders, the number of shares of Restricted Stock specified in such notice (and in all notices received by the Company from other holders within 30 days after the giving of such notice by the Company).  If such method of disposition shall be an underwritten public offering, the holders of a majority of the shares of Restricted Stock to be sold in such offering may designate the managing underwriter of such offering, subject to the approval of the Company, which approval shall not be unreasonably withheld or delayed.  The Company shall be obligated to register Restricted Stock pursuant to  this Section 4 on two occasions only, provided, however, that such obligation shall be deemed satisfied only when a registration statement covering all shares of Restricted Stock specified in notices received as aforesaid, for sale in accordance with the method of disposition specified by

 

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the requesting holders, shall have become effective and, if such method of disposition is a firm commitment underwritten public offering, all such shares shall have been sold pursuant thereto other than shares withdrawn by the holders thereof.

 

(c)           The Company shall be entitled to include in any registration statement referred to in this Section 4, for sale in accordance with the method of disposition specified by the requesting holders, shares of Common Stock to be sold by the Company for its own account, except as and to the extent that, in the opinion of the managing underwriter (if such method of disposition shall be an underwritten public offering), such inclusion would adversely affect the marketing of the Restricted Stock to be sold.

 

5.             Incidental Registration.  If the Company at any time (other than pursuant to Section 4 or Section 6) proposes to register any of its securities under the Securities Act for sale to the public, whether for its own account or for the account of other security holders or both (except with respect to registration statements on Forms S-4, S-8 or another form not available for registering the Restricted Stock for sale to the public), each such time it will give written notice to all holders of outstanding Restricted Stock of its intention so to do.  Upon the written request of any such holder, received by the Company within 30 days after the giving of any such notice by the Company, to register any of its Restricted Stock, the Company will use its best efforts to cause the Restricted Stock as to which registration shall have been so requested to be included in the securities to be covered by the registration statement proposed to be filed by the Company, all to the extent requisite to permit the sale or other disposition by the holder of such Restricted Stock so registered.  In the event that any registration pursuant to this Section 5 shall be, in whole or in part, an underwritten public offering of Common Stock, the number of shares of Restricted Stock to be included in such an underwriting may be reduced (pro rata among the requesting holders based upon the number of shares of Restricted Stock owned by such holders) if and to the extent that the managing underwriter shall be of the opinion that such inclusion would adversely affect the marketing of the securities to be sold by the Company therein; provided, however, that (other than in the case of the initial public offering of Common Stock) such number of shares of Restricted Stock shall not be reduced below 30% of the total number of shares to be offered in such an underwriting, and such number of shares of Restricted Stock shall not be reduced at all if any shares are to be included in such underwriting for the account of any person other than the Company or requesting holders of Restricted Stock.  Notwithstanding the foregoing provisions, the Company may withdraw any registration statement referred to in this Section 5 without thereby incurring any liability to the holders of Restricted Stock.

 

6.             Registration on Form S-3.  If at any time (i) a holder or holders of Preferred Shares or Restricted Stock request that the Company file a registration statement on Form S-3 or any successor thereto for a public offering of all or any portion of the shares of Restricted Stock held by such requesting holder or holders, the reasonably anticipated aggregate price to the public of which would exceed $1,000,000, and (ii) the Company is a registrant entitled to use Form S-3 or any successor thereto to register such shares, then the Company shall use its best efforts to register under the Securities Act on Form S-3 or any successor thereto, for public sale in accordance with the method of disposition specified in such notice, the number of shares of  Restricted Stock specified in such notice.  Whenever the Company is required by this Section 6 to use its best efforts to effect the registration of Restricted Stock, each of the procedures and requirements of Section 4 (including but not limited to the requirement that the Company notify

 

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all holders of Restricted Stock from whom notice has not been received and provide them with the opportunity to participate in the offering) shall apply to such registration, provided, however, that there shall be no limitation on the number of registrations on Form S-3 which may be requested and obtained under this Section 6 (but no more than two per 12-month period), and provided, further, however, that the requirements contained in the first sentence of Section 4(a) shall not apply to any registration on Form S-3 which may be requested and obtained under this Section 6.

 

7.             Registration Procedures.  If and whenever the Company is required by the provisions of Sections 4, 5 or 6 to use its best efforts to effect the registration of any shares of Restricted Stock under the Securities Act, the Company will, as expeditiously as possible:

 

(a)           prepare and file with the Commission a registration statement (which, in the case of an underwritten public offering pursuant to Section 4, shall be on Form S-1 or other form of general applicability reasonably satisfactory to the managing underwriter selected as therein provided) with respect to such securities and use its best efforts to cause such registration statement to become and remain effective for the period of the distribution contemplated thereby (determined as hereinafter provided);

 

(b)           prepare and file with the Commission such amendments and supplements to such registration statement and the prospectus used in connection therewith as may be necessary to keep such registration statement effective for the period specified in paragraph (a) above and comply with the provisions of the Securities Act with respect to the disposition of all Restricted Stock covered by such registration statement in accordance with the sellers’ intended method of disposition set forth in such registration statement for such period;

 

(c)           furnish to each seller of Restricted Stock and to each underwriter such number of copies of the registration statement and the prospectus included therein (including each preliminary prospectus) as such persons reasonably may request in order to facilitate the public sale or other disposition of the Restricted Stock covered by such registration statement;

 

(d)           use its best efforts to register or qualify the Restricted Stock covered by such registration statement under the securities or “blue sky” laws of such jurisdictions as the sellers of Restricted Stock or, in the case of an underwritten public offering, the managing underwriter reasonably shall request, provided, however, that the Company shall not for any such purpose be required to qualify generally to transact business as a foreign corporation in any jurisdiction where it is not so qualified or to consent to general service of process in any such jurisdiction;

 

(e)           use its best efforts to list the Restricted Stock covered by such registration statement with any securities exchange on which the Common Stock of the Company is then listed;

 

(f)            immediately notify each seller of Restricted Stock and each underwriter under such registration statement, at any time when a prospectus relating thereto is required to be  delivered under the Securities Act, of the happening of any event of which the Company has knowledge as a result of which the prospectus contained in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to

 

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be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing;

 

(g)           if the offering is underwritten and at the request of any seller of Restricted Stock, use its best efforts to furnish on the date that Restricted Stock is delivered to the underwriters for sale pursuant to such registration:   (i) an opinion dated such date of counsel representing the Company for the purposes of such registration, addressed to the underwriters and to such seller, stating that such registration statement has become effective under the Securities Act and that (A) to the best knowledge of such counsel, no stop order suspending the effectiveness thereof has been issued and no proceedings for that purpose have been instituted or are pending or contemplated under the Securities Act, (B) the registration statement, the related prospectus and each amendment or supplement thereof comply as to form in all material respects with the requirements of the Securities Act (except that such counsel need not express any opinion as to financial statements or schedules contained therein) and (C) to such other effects as reasonably may be requested by counsel for the underwriters or by such seller or its counsel and (ii) a letter dated such date from the independent public accountants retained by the Company, addressed to the underwriters and to such seller, stating that they are independent public accountants within the meaning of the Securities Act and that, in the opinion of such accountants, the financial statements of the Company included in the registration statement or the prospectus, or any amendment or supplement thereof, comply as to form in all material respects with the applicable accounting requirements of the Securities Act, and such letter shall additionally cover such other financial matters (including information as to the period ending no more than five business days prior to the date of such letter) with respect to such registration as such underwriters reasonably may request; and

 

(h)           make available for inspection by each seller of Restricted Stock, any underwriter participating in any distribution pursuant to such registration statement, and any attorney, accountant or other agent retained by such seller or underwriter, all financial and other records, pertinent corporate documents and properties of the Company, and cause the Company’s officers, directors and employees to supply to each seller of Restricted Stock and to any underwriter participating in such distribution such reasonable number of copies of the registration statement, preliminary prospectus, final prospectus, and such other documents as such seller of Restricted Stock or underwriter may reasonably request in order to facilitate the public offering.

 

For purposes of Section 7(a) and 7(b) and of Section 4(c), the period of distribution of Restricted Stock in a firm commitment underwritten public offering shall be deemed to extend until each underwriter has completed the distribution of all securities purchased by it, and the period of distribution of Restricted Stock in any other registration shall be deemed to extend until the earlier of the sale of all Restricted Stock covered thereby and 120 days after the effective date thereof.

 

In connection with each registration hereunder, the sellers of Restricted Stock will furnish to the Company in writing such information with respect to themselves and the proposed  distribution by them as reasonably shall be necessary in order to assure compliance with federal and applicable state securities laws.

 

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In connection with each registration pursuant to Sections 4, 5 or 6 covering an underwritten public offering, the Company and each seller agree to enter into a written agreement with the managing underwriter selected in the manner herein provided in such form and containing such provisions as are customary in the securities business for such an arrangement between such underwriter and companies of the Company’s size and investment stature.

 

8.             Expenses.  All expenses incurred by the Company in complying with Sections 4, 5 and 6, including, without limitation, all registration and filing fees, printing expenses, fees and disbursements of counsel and independent public accountants for the Company, fees and expenses (including counsel fees) incurred in connection with complying with state securities or “blue sky” laws, fees of the National Association of Securities Dealers, Inc., transfer taxes, fees of transfer agents and registrars, costs of insurance and reasonable fees and disbursements of one counsel for the sellers of Restricted Stock (not in excess of $15,000), but excluding any Selling Expenses, are called “Registration Expenses”.  All underwriting discounts and selling commissions applicable to the sale of Restricted Stock are called “Selling Expenses”.

 

The Company will pay all Registration Expenses in connection with each registration statement under Sections 4, 5 or 6.  All Selling Expenses in connection with each registration statement under Sections 4, 5 or 6 shall be borne by the participating sellers in proportion to the number of shares sold by each, or by such participating sellers other than the Company (except to the extent the Company shall be a seller) as they may agree.

 

9.             Indemnification and Contribution. (a)  In the event of a registration of any of the Restricted Stock under the Securities Act pursuant to Sections 4, 5 or 6, the Company will indemnify and hold harmless each seller of such Restricted Stock thereunder, each underwriter of such Restricted Stock thereunder and each other person, if any, who controls such seller or underwriter within the meaning of the Securities Act, against any losses, claims, damages or liabilities, joint or several, to which such seller, underwriter or controlling person may become subject under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained or incorporated by reference in any registration statement under which such Restricted Stock was registered under the Securities Act pursuant to Sections 4, 5 or 6, any preliminary prospectus or final prospectus contained therein, or any amendment or supplement thereof, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse each such seller, each such underwriter and each such controlling person for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action, provided, however, that the Company will not be liable in any such case if and to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission so made in conformity with information furnished by any such seller, any such underwriter or any such controlling person in writing specifically for use in such registration statement or prospectus; provided  further,  however, that the Company shall not be liable under this Section 9(a) to any indemnified party with respect to any preliminary prospectus to the extent that any such loss, claim, damage, liability or judgment resulted from the fact that such indemnified party, in contravention of a

 

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requirement of applicable law, sold Restricted Stock to a person to whom such indemnified party failed to send or give, on or prior to the closing date of such sale, a copy of the final prospectus, as then amended or supplemented, if (i) the Company has previously furnished copies thereof (sufficiently in advance of such closing date to allow for distribution by the closing date) to such indemnified party, and the loss, claim, damage, liability or judgment of such indemnified party resulted from an untrue statement or omission of a material fact contained in or omitted from the preliminary prospectus that was corrected in the final prospectus as, if applicable, amended or supplemented prior to such closing date, and such final prospectus was required by law to be delivered at or prior to the written confirmation of sale to such person and (ii) the giving or sending of such final prospectus by such closing date to the party or parties asserting such loss, claim, damage, liability or judgment would have constituted a defense to the claim asserted by such person.

 

(b)           In the event of a registration of any of the Restricted Stock under the Securities Act pursuant to Sections 4, 5 or 6, each seller of such Restricted Stock thereunder, severally and not jointly, will indemnify and hold harmless the Company, each person, if any, who controls the Company within the meaning of the Securities Act, each officer of the Company who signs the registration statement, each director of the Company, each underwriter and each person who controls any underwriter within the meaning of the Securities Act, against all losses, claims, damages or liabilities, joint or several, to which the Company or such officer, director, underwriter or controlling person may become subject under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in the registration statement under which such Restricted Stock was registered under the Securities Act pursuant to Sections 4, 5 or 6, any preliminary prospectus or final prospectus contained therein, or any amendment or supplement thereof, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse the Company and each such officer, director, underwriter and controlling person for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action, provided, however, that such seller will be liable hereunder in any such case if and only to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in reliance upon and in conformity with information pertaining to such seller, as such, furnished in writing to the Company by such seller specifically for use in such registration statement or prospectus, and provided, further, however, that the liability of each seller hereunder shall be limited to the net proceeds received by such seller from the sale of Restricted Stock covered by such registration statement.

 

(c)           Promptly after receipt by an indemnified party hereunder of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party hereunder, notify the indemnifying party in writing thereof, but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to such indemnified party other than under this Section 9 and shall only relieve it  from any liability which it may have to such indemnified party under this Section 9 to the extent that the indemnifying party is prejudiced by such omission.  In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the

 

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commencement thereof, the indemnifying party shall be entitled to participate in and, to the extent it shall wish, to assume and undertake the defense thereof with counsel reasonably satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party of its election so to assume and undertake the defense thereof, the indemnifying party shall not be liable to such indemnified party under this Section 9 for any legal expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation and of liaison with counsel so selected, provided, however, that, if the defendants in any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be reasonable defenses available to it which are different from or additional to those available to the indemnifying party or if the interests of the indemnified party reasonably may be deemed to conflict with the interests of the indemnifying party, the indemnified party shall have the right to select a separate counsel and to assume such legal defenses and otherwise to participate in the defense of such action, with the expenses and fees of such separate counsel and other expenses related to such participation to be reimbursed by the indemnifying party as incurred.

 

(d)           In order to provide for just and equitable contribution to joint liability under the Securities Act in any case in which either (i) the Company or any holder of Restricted Stock exercising rights under this Agreement, or any controlling person of any such holder, makes a claim for indemnification pursuant to this Section 9 but it is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) that such indemnification may not be enforced in such case notwithstanding the fact that this Section 9 provides for indemnification in such case, or (ii) contribution under the Securities Act may be required on the part of the Company or any such selling holder or any such controlling person in circumstances for which indemnification is provided under this Section 9; then, and in each such case, the Company and such holder will contribute to the aggregate losses, claims, damages or liabilities to which they may be subject (after contribution from others) in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other in connection with the statements or omissions that resulted in such loss, claim, damage or liability as well as any other equitable considerations. The relative fault of the indemnifying party and of the indemnified party shall be determined by referring to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission; provided, however, that, in any such case, (A) no such holder will be required to contribute any amount in excess of the net proceeds from the offering of such Restricted Stock received by it; and (B) no person or entity guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any person or entity who was not guilty of such fraudulent misrepresentation.

 

10.           Changes in Common Stock or Preferred Stock.  If, and as often as, there is any change in the Common Stock or the Preferred Stock by way of a stock split, stock dividend,  combination or reclassification, or through a merger, consolidation, reorganization or recapitalization, or by any other means, appropriate adjustment shall be made in the provisions

 

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hereof so that the rights and privileges granted hereby shall continue with respect to the Common Stock or the Preferred Stock as so changed.

 

11.           Rule 144 Reporting.  With a view to making available the benefits of certain rules and regulations of the Commission which may at any time permit the sale of the Restricted Stock to the public without registration, at all times after 90 days after any registration statement covering a public offering of securities of the Company under the Securities Act shall have become effective, the Company agrees to:

 

(a)           make and keep public information available, as those terms are understood and defined in Rule 144 under the Securities Act;

 

(b)           use its best efforts to file with the Commission in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act; and

 

(c)           furnish to each holder of Restricted Stock forthwith upon request a written statement by the Company as to its compliance with the reporting requirements of such Rule 144 and of the Securities Act and the Exchange Act, a copy of the most recent annual or quarterly report of the Company, and such other reports and documents so filed by the Company as such holder may reasonably request in availing itself of any rule or regulation of the Commission allowing such holder to sell any Restricted Stock without registration.

 

12.           Covenants of the Company.  The Company covenants with each of the Preferred Holders that:

 

(a) Financial Statements, Reports, Etc.  The Company shall furnish to each Preferred Holder that is the owner of record at such time of not less than 1,000,000 Preferred Shares (a “Major Preferred Holder”):

 

(i)            within ninety (90) days after the end of each fiscal year of the Company a consolidated balance sheet of the Company and its subsidiaries, if any, as of the end of such fiscal year and the related consolidated statements of income, stockholders’ equity and cash flows for the fiscal year then ended, prepared in accordance with generally accepted accounting principles and audited by a firm of independent public accountants of recognized national standing selected by the Board of Directors of the Company;

 

(ii)           within forty-five (45) days after the end of each month in each fiscal year (other than the last month in each fiscal year) a consolidated balance sheet of the Company and its subsidiaries, if any, and the related consolidated statements of income, stockholders’ equity and cash flows, unaudited but prepared in accordance with generally accepted accounting principles and certified by the Chief Financial Officer (or similar officer) of the Company, such consolidated balance sheet to be as of the end of such month and such consolidated statements of income, stockholders’ equity and cash flows to be for such month and for the period from the beginning of the fiscal year to the end of such month, in each case with comparative statements for the prior fiscal year;

 

(iii)          within thirty (30) days after the end of each fiscal quarter  (other than the last quarter in each fiscal year) a consolidated balance sheet of the Company and its subsidiaries,

 

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if any, and the related consolidated statements of income, stockholders’ equity and cash flows, unaudited but prepared in accordance with generally accepted accounting principles and certified by the Chief Financial Officer (or similar officer) of the Company, such consolidated balance sheet to be as of the end of such quarter and such consolidated statements of income, stockholders’ equity and cash flows to be for such quarter and for the period from the beginning of the fiscal year to the end of such quarter, in each case with comparative statements for the prior fiscal year;

 

(iv)          no later than fifteen (15) days prior to the start of each fiscal year, consolidated capital and operating expense budgets, cash flow projections and income and loss projections for the Company and its subsidiaries in respect of such fiscal year, all itemized in reasonable detail and prepared on a monthly basis, and, promptly after preparation, any revisions to any of the foregoing; and

 

(v)           promptly, from time to time, such other information regarding the business, prospects, financial condition, operations, property or affairs of the Company and its subsidiaries as such Major Preferred Holder reasonably may request.

 

The Company’s obligations under this Section 12(a) shall terminate upon the completion of a firm commitment underwritten public offering of the Company’s securities.

 

(b)           Right of Participation.  The Company shall, prior to any proposed issuance by the Company of any of its securities (other than debt securities with no equity feature), offer to each Preferred Holder by written notice the right, for a period of fifteen (15) days, to purchase for cash at an amount equal to the price or other consideration for which such securities are to be issued, a number of such securities so that, after giving effect to such issuance (and the conversion, exercise and exchange into or for (whether directly or indirectly) shares of Common Stock of all such securities that are so convertible, exercisable or exchangeable), such Preferred Holder will continue to maintain its same proportionate equity ownership in the Company as of the date of such notice (treating each Preferred Holder, for the purpose of such computation, as the holder of the number of shares of Common Stock which would be issuable to such Preferred Holder upon conversion, exercise and exchange of all securities held by such Preferred Holder on the date such offer is made, that are convertible, exercisable or exchangeable into or for (whether directly or indirectly) shares of Common Stock and assuming the like conversion, exercise and exchange of all such other securities held by other persons); provided, however, that the participation rights of the Preferred Holders pursuant to this Section 12(b) shall not apply to securities issued (A) upon conversion of any of the Preferred Shares, (B) as a stock dividend or upon any subdivision of shares of Common Stock, provided that the securities issued pursuant to such stock dividend or subdivision are limited to additional shares of Common Stock, (C) pursuant to subscriptions, warrants, options, convertible securities, or other rights which are outstanding on the date of this Agreement, (D) solely in consideration for the acquisition (whether by merger or otherwise) by the Company or any of its subsidiaries of all or substantially all of the stock or assets of any other entity as long as such acquisition is approved by the Board of Directors, which approval must include one of the directors elected by the holders of Series A Preferred Stock and one of the directors elected by the holders of Series B  and/or Series C Stock, (E) pursuant to a bona fide firm commitment underwritten public offering, (F) pursuant to the exercise of options to purchase Common Stock granted to directors, officers,

 

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employees or consultants of the Company in connection with their service to the Company, not to exceed in the aggregate 25,734,473 shares (appropriately adjusted to reflect stock splits, stock dividends, combinations of shares and the like with respect to the Common Stock)or such greater number of shares as may be approved from time to time by the Board of Directors, which approval must include one of the directors elected by the holders of Series A Preferred Stock and one of the directors elected by the holders of Series B and/or Series C Stock (the shares exempted by this clause (F) being hereinafter referred to as the “Reserved Employee Shares”), (G) to financial institutions, lenders or lessors in connection with lease liens, equipment financing or other loans as long as such issuance is approved by the Board of Directors, which approval must include one of the directors elected by the holders of Series A Preferred Stock and one of the directors elected by the holders of Series B and/or Series C Stock, (H) to vendors, trade partners, service providers, or in connection with strategic relationships approved by the Board of Directors, which approval must include one of the directors elected by the holders of Series A Preferred Stock and one of the directors elected by the holders of Series B and/or Series C Stock and (I) pursuant to the Purchase Agreement.  The Company’s written notice to the Preferred Holders shall describe the securities proposed to be issued by the Company and specify the number, price and payment terms. Each Preferred Holder may accept the Company’s offer as to the full number of securities offered to it or any lesser number, by written notice thereof given by it to the Company prior to the expiration of the aforesaid fifteen (15) day period, in which event the Company shall promptly sell and such Preferred Holder shall buy, upon the terms specified, the number of securities agreed to be purchased by such Preferred Holder.  The Company shall be free at any time prior to one hundred and twenty (120) days after the date of its notice of offer to the Preferred Holders, to offer and sell to any third party or parties the remainder of such securities proposed to be issued by the Company (including but not limited to the securities not agreed by the Preferred Holders to be purchased by them), at a price and on payment terms no less favorable to the Company than those specified in such notice of offer to the Preferred Holders.  However, if such third party sale or sales are not consummated within such one hundred and twenty (120) day period, the Company shall not sell such securities as shall not have been purchased within such period without again complying with this Section 12(b).

 

(c)           Reserve for Conversion Shares.  The Company shall at all times reserve and keep available out of its authorized but unissued shares of Common Stock, for the purpose of effecting the conversion of the Preferred Shares and otherwise complying with the terms of this Agreement, such number of its duly authorized shares of Common Stock as shall be sufficient to effect the conversion of the Preferred Shares from time to time outstanding or otherwise to comply with the terms of this Agreement.  If at any time the number of authorized but unissued shares of Common Stock shall not be sufficient to effect the conversion of the Preferred Shares or otherwise to comply with the terms of this Agreement, the Company will forthwith take such corporate action as may be necessary to increase its authorized but unissued shares of Common Stock to such number of shares as shall be sufficient for such purposes.  The Company will obtain any authorization, consent, approval or other action by or make any filing with any court or administrative body that may be required under applicable state securities laws in connection with the issuance of shares of Common Stock upon conversion of the Preferred Shares.

 

(d)           Properties, Business, Insurance.  The Company shall maintain and cause each of its subsidiaries (if any) to maintain as to their respective properties and business, with financially sound and reputable insurers, insurance against such casualties and contingencies and of such

 

12

 

types and in such amounts as is customary for companies similarly situated, which insurance shall be deemed by the Company to be sufficient.

 

(e)           Board of Directors Meetings.  The Company shall use its commercially reasonable efforts to ensure that meetings of its Board of Directors are held at least four times each year and at least once each quarter.

 

(f)            Use of Proceeds.  The Company shall use the proceeds from the sale of the Series C Preferred Stock solely for (i) working capital purposes, (ii) the payment of any outstanding indebtedness, and (iii) to fund the acquisition of Concourse Holding Co., LLC.

 

(g)           By-laws.  The Company shall at all times maintain provisions in its By-laws and/or Amended and Restated Certificate of Incorporation indemnifying all directors against liability and absolving all directors from liability to the Company and its stockholders to the maximum extent permitted under the laws of the State of Delaware.

 

(h)           Inventions and Confidentiality Agreements.  The Company shall use its best efforts to obtain, and shall cause its subsidiaries (if any) to use their best efforts to obtain, the form of employee inventions and confidentiality agreement in substantially the form of Exhibit A from all future officers, key employees and other employees who will have access to confidential information of the Company or any of its subsidiaries, upon their employment by the Company or any of its subsidiaries. The Company shall use its best efforts to enter into agreements in respect of the assignment of inventions and confidentiality on terms substantially similar to those set forth in Exhibit A with its independent contractors whose work is material to the business of the Company.

 

(i)            Inspection, Consultation and Advice.  The Company shall permit and cause each of its subsidiaries (if any) to permit each Major Preferred Holder and such persons as it may reasonably designate, at such Major Preferred Holder’s expense, to visit and inspect any of the properties of the Company and its subsidiaries, examine their books and take copies and extracts therefrom, discuss the affairs, finances and accounts of the Company and its subsidiaries with their officers, employees and public accountants (and the Company hereby authorizes said accountants to discuss with such Major Preferred Holder and such designees such affairs, finances and accounts), and consult with and advise the management of the Company and its subsidiaries as to their affairs, finances and accounts, all at reasonable times and upon reasonable notice.

 

(j)            Restrictive Agreements Prohibited. Neither the Company nor any of its subsidiaries shall become a party to any agreement which by its terms restricts the Company’s performance of any of the Transaction Documents (as defined in the Purchase Agreement) or the Certificate of Incorporation.

 

(k)           Transactions with Affiliates. Except for transactions contemplated by this Agreement or as otherwise approved by the Board of Directors, neither the Company nor any of  its subsidiaries shall enter into any transaction with any director, officer, employee or holder of more than 5% of the outstanding capital stock of any class or series of capital stock of the Company or any of its subsidiaries, member of the family of any such person, or any corporation,

 

13

 

partnership, trust or other entity in which any such person, or member of the family of any such person, is a director, officer, trustee, partner or holder of more than 5% of the outstanding capital stock thereof, except for transactions on customary terms related to such person’s employment or arm’s-length transactions conducted in the ordinary course of business.

 

(l)            U.S. Real Property Interest Statement.  The Company shall provide prompt written notice to each Preferred Holder following any “determination date” (as defined in Treasury Regulation Section 1.897-2(c)(i)) on which the Company becomes a United States real property holding corporation.  In addition, upon a written request by any Preferred Holder, the Company shall provide such Preferred Holder with a written statement informing the Preferred Holder whether such Preferred Holder’s interest in the Company constitutes a U.S. real property interest.  The Company’s determination shall comply with the requirements of Treasury Regulation Section 1.897-2(h)(1) or any successor regulation, and the Company shall provide timely notice to the Internal Revenue Service, in accordance with and to the extent required by Treasury Regulation Section 1.897-2(h)(2) or any successor regulation, that such statement has been made. The Company’s written statement to any Preferred Holder shall be delivered to such Preferred Holder within ten (10) days of such Preferred Holder’s written request therefor.  The Company’s obligation to furnish a written statement pursuant to this 12(l) shall continue notwithstanding the fact that a class of the Company’s stock may be regularly traded on an established securities market.

 

(m)          Termination of Covenants.  The covenants set forth in Section 12 shall terminate and be of no further force or effect: (i) upon the completion of a Qualified Offering, (ii) as to each of the Preferred Holders when such Preferred Holder (together with its affiliates) holds less than 10% of the total capital stock initially issued to it by, or (iii) upon the occurrence of a Liquidation Event (as defined in the Certificate of Incorporation); provided, however, that the covenant entitled “US Real Property Interest Statement” shall terminate only when a Preferred Holder owns no capital stock in the Company.

 

13.           Miscellaneous.

 

(a)           All covenants and agreements contained in this Agreement by or on behalf of any of the parties hereto shall bind and inure to the benefit of the respective successors and assigns of the parties hereto (including without limitation transferees of any Preferred Shares or Restricted Stock), whether so expressed or not, provided, however, that registration rights conferred herein on the holders of Preferred Shares or Restricted Stock shall only inure to the benefit of a transferee of Preferred Shares or Restricted Stock if (i) there is transferred to such transferee at least 20% of the total shares of Restricted Stock originally issued pursuant to the Purchase Agreement to the direct or indirect transferor of such transferee or (ii) such transferee is a partner, shareholder, subsidiary, parent or affiliate of a party hereto. All Preferred Shares and Conversion Shares held or acquired by affiliated entities or persons shall be aggregated together for the purpose of determining the availability of any of the rights under this Agreement.

 

(b)           All notices, requests, consents and other communications hereunder shall be in writing and shall be delivered in person, mailed by certified or registered mail, return receipt requested, or sent by telecopier or telex, addressed as follows:

 

14

 

if to the Company or any other party hereto, at the address of such party set forth in the Purchase Agreement;

 

if to any subsequent holder of Preferred Shares or Restricted Stock, to it at such address as may have been furnished to the Company in writing by such holder;

 

or, in any case, at such other address or addresses as shall have been furnished in writing to the Company (in the case of a holder of Preferred Shares or Restricted Stock) or to the holders of Preferred Shares or Restricted Stock (in the case of the Company) in accordance with the provisions of this paragraph.

 

(c)           This Agreement shall be governed by and construed in accordance with the laws of the State of California.

 

(d)           This Agreement constitutes the entire agreement of the Parties with respect to the subject matter hereof and is intended to amend and restate the Existing Agreement in its entirety.

 

(e)           This Agreement may not be amended or modified, and no provision hereof may be waived, without the written consent of the Company and the holders of at least a majority of the outstanding shares of Restricted Stock ( in the case of sections 1 through 11 and this article 13) and Preferred Stock (in the case of section 12 and this article 13), provided, in such case, that all such holders are similarly affected by such amendment, modification or waiver (collectively a “Modification”); provided, however, that the consent of the holders of Preferred Stock or Restricted Stock shall not be required for the Company to add additional Series C Purchasers as parties to this Agreement.  Notwithstanding the prior sentence, (i) so long as any shares of Series A-2 Preferred Stock remain outstanding, no Modification to the rights of the holders of Series A-2 Preferred Stock hereunder shall be effective if such Modification affects the holders of Series A-2 Preferred Stock in a manner differently than the holders of Series A Preferred Stock without the prior written consent of the holders of at least a majority of the outstanding shares of Series A-2 Preferred Stock, (ii) no Modification to the rights of the holders of the Series B Preferred Stock hereunder shall be effective if such Modification affects the holders of Series B Preferred Stock in a manner differently from the holders of Series A Preferred Stock,  Series A-2 Preferred Stock or Series C Preferred Stock without the prior written consent of the holders of at least 66 2/3% of the outstanding shares of Series B Preferred Stock, and (iii) no Modification to the rights of the holders of Series C Preferred Stock hereunder shall be effective if such Modification affects the holders of Series C Preferred Stock in a manner differently from the holders of Series A Preferred Stock, Series A-2 Preferred Stock, or Series B Preferred Stock without the prior written consent of the holders of at least 55% of the outstanding shares of Series C Preferred Stock.

 

(f)            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.

 

(g)           The obligations of the Company to register shares of Restricted Stock under Sections 4, 5 or 6 shall terminate on the earlier of the fifteenth anniversary of the date of this

 

15

 

Agreement or the fifth anniversary of the date of the earlier of (i) the first request made by the holders of Restricted Stock under Section 4 above and (ii) the Qualified Offering.

 

(h)           If requested in writing by the underwriters for the initial underwritten public offering of securities of the Company, each holder of Restricted Stock who is a party to this Agreement shall agree not to sell publicly any shares of Restricted Stock or any other shares of Common Stock (other than (i) shares of Restricted Stock or other shares of Common Stock being registered in such offering and (ii) any stock acquired in the Company’s initial public offering or on the open market thereafter by holders of less than 1,000,000 shares of Restricted Stock), without the consent of such underwriters, for a period of not more than 180 days following the effective date of the registration statement relating to such offering; provided, however, that all persons entitled to registration rights with respect to shares of Common Stock who are not parties to this Agreement, all other persons selling shares of Common Stock in such offering, all persons holding in excess of 5% of the capital stock of the Company on a fully diluted basis and all executive officers and directors of the Company shall also have agreed not to sell publicly their Common Stock under the circumstances and pursuant to the terms set forth in this Section 13(h) and any discretionary waiver (which, when taken individually or aggregated with other discretionary waivers, covers more than 1% of the capital stock of the Company on a fully diluted basis) or early termination of such lock-up by the Company or its underwriters with respect to any person shall similarly release all holders of Restricted Stock.

 

(i)            Notwithstanding the provisions of Section 7(a), the Company’s obligation to file a registration statement, or cause such registration statement to become and remain effective, shall be suspended for a period not to exceed 90 days in any 12-month period if there exists at the time material non-public information relating to the Company which, in the reasonable opinion of the Company, should not be disclosed.  Notwithstanding the provisions of Sections 4, 5, 6 and 7 hereof, the Company shall not be obligated to take any action to effect any such registration (i) within the three month period immediately following the effective date of any registration statement pertaining to securities of the Company sold by the Company (other than a registration of securities in a Rule 145 transaction or with respect to an employee benefit plan), or (ii) if the Company has furnished to holders of Restricted Stock a certificate signed by the President of the Company stating that, in the good faith judgment of the Board of Directors, it would be seriously detrimental to the Company or its shareholders for registration statements to be filed in the near future, then the Company’s obligation to use its reasonable best efforts to file a registration statement shall be deferred for a single period not to exceed one hundred twenty (120) days from the receipt of the request to file such registration by such holder(s); provided, however, that the Company shall not defer its obligation in this manner more than once in any twelve (12) month period and provided, further, that in no event shall the suspensions or deferrals pursuant to this Section 13(i) exceed 120 days in any 12-month period.

 

(j)            The Company shall not grant to any third party any registration rights more favorable than or inconsistent with any of those contained herein, so long as any of the registration rights under this Agreement remains in effect.

 

(k)           Confidentiality.

 

16

 

(a)           No party hereto shall issue a press release or otherwise publicize the transaction contemplated by this Agreement without prior written consent of the other parties hereto.  No information, documents or reports provided to or obtained by any party in connection with this transaction shall be disclosed to any non-party except as required in carrying out the transaction contemplated hereby.

 

(b)           Notwithstanding anything to the contrary in this Agreement or any other agreement relating to the transactions contemplated by this Agreement, and except as reasonably necessary to comply with any applicable federal and state securities laws, each party hereto (and each employee, representative or other agent of each party) may disclose to any and all persons, without limitation of any kind, the U.S. federal tax treatment and tax structure of the transactions contemplated by this Agreement and all materials of any kind (including opinions or other tax analyses, but without disclosure of identifying information or, except to the extent relating to such tax structure or tax treatment, any nonpublic commercial or financial information) that are provided to a party relating to such U.S. federal tax treatment and tax structure.  For this purpose, “tax structure” is any fact that may be relevant to understanding the U.S. federal tax treatment of the transaction.

 

(l)            If any provision of this Agreement shall be held to be illegal, invalid or unenforceable, such illegality, invalidity or unenforceability shall attach only to such provision and shall not in any manner affect or render illegal, invalid or unenforceable any other provision of this Agreement, and this Agreement shall be carried out as if any such illegal, invalid or unenforceable provision were not contained herein.

 

[remainder of page intentionally left blank]

 

17

 

IN WITNESS HEREOF, the parties have executed this Amended and Restated Investor Rights Agreement as of the day and year first above written.

 

	
 
  	
COMPANY:
  
	
 
  	
 
  
	
 
  	
BOINGO WIRELESS, INC.
  
	
 
  	
 
  
	
 
  	
 
  
	
 
  	
By:
  	
/s/ David Hagan
  
	
 
  	
 
  	
 
  
	
 
  	
Title:
  	
CEO
  

 

AGREED TO AND ACCEPTED as of the date first above written.

 

Preferred Holders:

Corporate Development Fund of Mitsui & Co., Ltd.

 

	
 
  	
By:
  	
Mitsui & Co. Principal Investments, Ltd.,
  	
 
  
	
 
  	
 
  	
Its general partner
  	
 
  
	
 
  	
 
  	
 
  	
 
  
	
 
  	
By:
  	
/s/ Yoichiro Endo
  	
 
  
	
 
  	
 
  	
Yoichiro Endo
  	
 
  
	
 
  	
 
  	
President
  	
 
  

 

Mitsui & Co. (USA), Inc.

 

	
 
  	
By:
  	
/s/ Kenichi Hori
  	
 
  
	
 
  	
Kenichi Hori
  	
 
  
	
 
  	
Senior Vice President
  	
 
  

 

Mitsui & Co. Venture Partners II, L.P.

 

	
 
  	
By:
  	
Mitsui & Co. Venture Partners, Inc.
  	
 
  
	
 
  	
 
  	
Its General Partner
  	
 
  
	
 
  	
 
  	
 
  	
 
  
	
 
  	
By:
  	
/s/ Koichi Ando
  	
 
  
	
 
  	
 
  	
Koichi Ando
  	
 
  
	
 
  	
 
  	
President and CEO
  	
 
  

 

 

Infonet Services Corporation

 

	
By:
  	
 
  	
 
  
	
 
  	
Name:
  	
 
  	
 
  
	
 
  	
Title:
  	
 
  	
 
  

 

 

New Enterprise Associates 10, Limited Partnership

 

	
By:
  	
NEA Partners 10, Limited Partnership
  	
 
  
	
 
  	
General Partner
  	
 
  
	
 
  	
 
  	
 
  
	
 
  	
By:
  	
/s/ Charles W. Newhall III
  	
 
  
	
 
  	
 
  	
Name:
  	
Charles W. Newhall III
  	
 
  
	
 
  	
 
  	
Title:
  	
General Partner
  	
 
  
	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  
	
NEA Ventures 2001, Limited Partnership
  	
 
  
	
 
  	
 
  	
 
  
	
By:
  	
/s/ Louis S. Citron
  	
 
  
	
 
  	
Name:
  	
Louis S. Citron
  	
 
  
	
 
  	
Title:
  	
Vice President
  	
 
  
						

 

 

	
Evercore Venture Partners, L.P.
  	
 
  
	
By: Evercore Venture Management II L.L.C.
  	
 
  
	
Its: General Partner
  	
 
  
	
 
  	
 
  
	
 
  	
 
  
	
 
  	
By:
  	
/s/ Sangam Pant
  	
 
  
	
 
  	
 
  	
Name:
  	
Sangam Pant
  	
 
  
	
 
  	
 
  	
Title:
  	
an authorized representative
  	
 
  
	
 
  	
 
  
	
Evercore Venture Partners (NQ) L.P.
  	
 
  
	
By: Evercore Venture Management L.L.C.
  	
 
  
	
Its: General Partner
  	
 
  
	
 
  	
 
  
	
 
  	
 
  
	
 
  	
By:
  	
/s/ Sangam Pant
  	
 
  
	
 
  	
 
  	
Name:
  	
Sangam Pant
  	
 
  
	
 
  	
 
  	
Title:
  	
an authorized representative
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  
	
Evercore Capital Partners L.P.
  	
 
  
	
By: Evercore Partners L.L.C.
  	
 
  
	
Its: General Partner
  	
 
  
	
 
  	
 
  
	
 
  	
 
  
	
 
  	
By:
  	
/s/ Sangam Pant
  	
 
  
	
 
  	
 
  	
Name:
  	
Sangam Pant
  	
 
  
	
 
  	
 
  	
Title:
  	
an authorized representative
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  
	
Evercore Capital Partners (NQ) L.P.
  	
 
  
	
By: Evercore Partners L.L.C.,
  	
 
  
	
Its: General Partner
  	
 
  
	
 
  	
 
  
	
 
  	
 
  
	
 
  	
By:
  	
/s/ Sangam Pant
  	
 
  
	
 
  	
 
  	
Name:
  	
Sangam Pant
  	
 
  
	
 
  	
 
  	
Title:
  	
an authorized representative
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  
	
Evercore Capital Offshore Partners L.P.
  	
 
  
	
By: Evercore Partners L.L.C.,
  	
 
  
	
Its: Investment General Partner
  	
 
  
	
 
  	
 
  
	
 
  	
 
  
	
 
  	
By:
  	
/s/ Sangam Pant
  	
 
  
	
 
  	
 
  	
Name:
  	
Sangam Pant
  	
 
  
	
 
  	
 
  	
Title:
  	
an authorized representative
  	
 
  

 

 

	
Sternhill Partners I, L.P.
  	
 
  
	
By: Sternhill Venture Management I, L.P.
  	
 
  
	
Its General Partner
  	
 
  
	
By: Sternhill, Inc.
  	
 
  
	
 
  	
 
  
	
 
  	
 
  
	
By:
  	
/s/ Marc S. Geller
  	
 
  
	
Name:
  	
Marc S. Geller
  	
 
  
	
Title:
  	
Managing Director/Sec’y
  	
 
  
	
 
  	
 
  
	
Sternhill Affiliates I, L.P.
  	
 
  
	
 
  	
 
  
	
By: Sternhill Venture Management I, L.P.
  	
 
  
	
Its General Partner
  	
 
  
	
By: Sternhill, Inc.
  	
 
  
	
 
  	
 
  
	
 
  	
 
  
	
By:
  	
/s/ Marc S. Geller
  	
 
  
	
Name:
  	
Marc S. Geller
  	
 
  
	
Title:
  	
Managing Director/Sec’y
  	
 
  
				

 

 

	
K. Flynn McDonald
  	
 
  
	
 
  	
 
  
	
 
  	
 
  
	
 
  	
 
  
	
James Stableford
  	
 
  
	
 
  	
 
  
	
 
  	
 
  
	
 
  	
 
  
	
Marc Weiss
  	
 
  
	
 
  	
 
  
	
 
  	
 
  
	
 
  	
 
  
	
James B. Fleming, Jr.
  	
 
  
	
 
  	
 
  
	
 
  	
 
  

 

 

	
Kravis Investment Partners, LLC
  	
 
  
	
 
  	
 
  
	
 
  	
 
  
	
By
  	
 
  	
 
  
	
 
  	
Name:
  	
 
  	
 
  
	
 
  	
Title:
  	
 
  	
 
  

 

 

	
eCompanies Wireless LLC
  	
 
  
	
 
  	
 
  
	
 
  	
 
  
	
By:
  	
 
  	
 
  
	
 
  	
Name:
  	
 
  	
 
  
	
 
  	
Title:
  	
 
  	
 
  
	
 
  	
 
  
	
 
  	
 
  
	
Sprint eWireless, Inc.
  	
 
  
	
 
  	
 
  
	
 
  	
 
  
	
By:
  	
 
  	
 
  
	
 
  	
Name:
  	
 
  	
 
  
	
 
  	
Title:
  	
 
  	
 
  

 

 

	
Saints Capital V, L.P.
  	
 
  
	
 
  	
 
  
	
 
  	
 
  
	
By:
  	
 
  	
 
  
	
 
  	
Name:
  	
 
  	
 
  
	
 
  	
Title:
  	
 
  	
 
  
	
 
  	
 
  
	
 
  	
 
  
	
Amberbrook IV LLC
  	
 
  
	
 
  	
 
  
	
 
  	
 
  
	
By:
  	
 
  	
 
  
	
 
  	
Name:
  	
 
  	
 
  
	
 
  	
Title:
  	
 
  	
 
  

 

 

	
PREFERRED HOLDER
  	
 
  
	
 
  	
 
  
	
 
  	
 
  
	
 
  	
 
  
	
 
  	
 
  
	
By:
  	
 
  	
 
  
	
Name:
  	
 
  	
 
  
	
Title:
  	
 
  	
 
  

 

 

	
Red Rock Ventures — SBIC III, L.P.
  	
 
  
	
By RRV Partners IIIA, LLC
  	
 
  
	
Its General Partner
  	
 
  
	
 
  	
 
  
	
/s/ Robert G. Todd, Jr.
  	
 
  
	
By Robert G. Todd, Jr.
  	
 
  
	
Managing Member
  	
 
  
	
 
  	
 
  
	
 
  	
 
  
	
Red Rock Ventures — Cayman Investors III, L.P.
  	
 
  
	
By RRV Partners III, LLC
  	
 
  
	
Its General Partner
  	
 
  
	
 
  	
 
  
	
/s/ Robert G. Todd, Jr.
  	
 
  
	
By Robert G. Todd, Jr.
  	
 
  
	
Managing Member
  	
 
  

 

 

	
STEELPOINT CAPITAL FUND, L.P.
  	
 
  
	
 
  	
 
  
	
 
  	
 
  
	
By:
  	
/s/ James A. Caccavo
  	
 
  
	
Name: James A. Caccavo
  	
 
  
	
Title: Managing Partner
  	
 
  
	
 
  	
 
  
	
 
  	
 
  
	
STEELPOINT CO-INVESTMENT FUND, LLC
  	
 
  
	
 
  	
 
  
	
 
  	
 
  
	
By:
  	
/s/ James A. Caccavo
  	
 
  
	
Name: James A. Caccavo
  
	
Title: Managing Member
  	
 
  

 

 

	
Legacy Private Technology Partners
  	
 
  
	
 
  	
 
  
	
 
  	
 
  
	
By:
  	
 
  	
 
  
	
Name:
  	
 
  	
 
  
	
Title:
  	
 
  	
 
  
	
 
  	
 
  
	
 
  	
 
  
	
Open Field Private Partners LLC
  	
 
  
	
 
  	
 
  
	
 
  	
 
  
	
By:
  	
/s/ Marc Weiss
  	
 
  
	
Name:
  	
Marc Weiss
  	
 
  
	
Title:
  	
CIOExhibit 10.2

 

Boingo Wireless, Inc.

 

Amended and Restated

2001 Stock Incentive Plan

 

i

 

TABLE OF CONTENTS

 

	
 
  	
 
  	
Page
  
	
Section 1
  	
Establishment and Purpose
  	
1
  
	
 
  	
 
  	
 
  
	
Section 2
  	
Administration
  	
1
  
	
(a)
  	
 
  	
Committees of the Board of Directors
  	
1
  
	
(b)
  	
 
  	
Authority of the Board of Directors
  	
1
  
	
(c)
  	
 
  	
Special Rules
  	
1
  
	
 
  	
 
  	
 
  
	
Section 3
  	
Eligibility
  	
1
  
	
 
  	
 
  	
 
  
	
Section 4
  	
Shares Subject to Plan
  	
2
  
	
(a)
  	
 
  	
Basic Limitation
  	
2
  
	
(b)
  	
 
  	
Special Rule
  	
2
  
	
(c)
  	
 
  	
Additional Stock
  	
2
  
	
(d)
  	
 
  	
Share Counting Rules
  	
2
  
	
 
  	
 
  	
 
  
	
Section 5
  	
Terms and Conditions of Options
  	
2
  
	
(a)
  	
 
  	
Option Agreement
  	
2
  
	
(b)
  	
 
  	
Number of Shares
  	
3
  
	
(c)
  	
 
  	
Exercise Price
  	
3
  
	
(d)
  	
 
  	
Exercisability
  	
3
  
	
(e)
  	
 
  	
Term
  	
3
  
	
(f)
  	
 
  	
Nontransferability
  	
4
  
	
(g)
  	
 
  	
Termination of Service (Except by Death or for Cause)
  	
4
  
	
(h)
  	
 
  	
Termination for Cause
  	
4
  
	
(i)
  	
 
  	
Death of Optionee
  	
4
  
	
(j)
  	
 
  	
No Rights as a Stockholder
  	
5
  
	
(k)
  	
 
  	
Restrictions on Ownership
  	
5
  
	
(l)
  	
 
  	
Minimum Vesting
  	
5
  
	
(m)
  	
 
  	
Payment for Stock
  	
5
  
	
 
  	
 
  	
 
  
	
Section 6
  	
Restricted Stock Awards
  	
6
  
	
(a)
  	
 
  	
Restricted Stock Awards
  	
6
  
	
(b)
  	
 
  	
Receipt of Stock
  	
6
  
	
(c)
  	
 
  	
Rights of Participants
  	
6
  
	
(d)
  	
 
  	
Nontransferability of Restricted Stock Awards
  	
6
  
	
(e)
  	
 
  	
Restrictions
  	
6
  
	
(f)
  	
 
  	
Section 162(m) Consequences
  	
7
  
	
 
  	
 
  	
 
  	
 
  
	
Section 7
  	
Repurchase Rights
  	
7
  

 

ii

 

	
(a)
  	
 
  	
Unvested Shares
  	
7
  
	
(b)
  	
 
  	
Vested Shares
  	
7
  
	
 
  	
 
  	
 
  
	
Section 8
  	
Right of First Refusal
  	
7
  
	
 
  	
 
  	
 
  
	
Section 9
  	
Modification, Extension and Assumption of Awards
  	
8
  
	
 
  	
 
  	
 
  
	
Section 10
  	
Adjustment of Stock
  	
8
  
	
(a)
  	
 
  	
General
  	
8
  
	
(b)
  	
 
  	
Extraordinary Events
  	
8
  
	
(c)
  	
 
  	
Reservation of Rights
  	
10
  
	
 
  	
 
  	
 
  
	
Section 11
  	
Securities Law Requirements
  	
10
  
	
(a)
  	
 
  	
General
  	
10
  
	
(b)
  	
 
  	
Financial Reports
  	
10
  
	
(c)
  	
 
  	
Plan Document
  	
11
  
	
 
  	
 
  	
 
  
	
Section 12
  	
No Retention Rights
  	
11
  
	
 
  	
 
  	
 
  
	
Section 13
  	
Duration and Amendments
  	
11
  
	
(a)
  	
 
  	
Term of the Plan
  	
11
  
	
(b)
  	
 
  	
Right to Amend or Terminate the Plan
  	
11
  
	
(c)
  	
 
  	
Effect of Amendment or Termination
  	
11
  
	
(d)
  	
 
  	
Written Amendments Only
  	
11
  
	
 
  	
 
  	
 
  
	
Section 14
  	
Miscellaneous Matters
  	
12
  
	
(a)
  	
 
  	
Withholding Taxes
  	
12
  
	
(b)
  	
 
  	
Election to Withhold Common Stock
  	
12
  
	
(c)
  	
 
  	
Governing Law
  	
12
  
	
(d)
  	
 
  	
Fees and Costs
  	
12
  
	
(e)
  	
 
  	
Awards to Foreign Nationals
  	
12
  
	
(f)
  	
 
  	
Indemnification
  	
12
  
	
 
  	
 
  	
 
  
	
Section 15
  	
Definitions
  	
12
  

 

 

iii

 

Boingo Wireless, Inc.

2001 Stock Incentive Plan

 

Section 1                                             Establishment and Purpose.

 

The purpose of the Plan is, by granting Awards, to offer selected individuals an opportunity to acquire a proprietary interest in the success of Boingo Wireless, Inc., a Delaware corporation (the “Company”), or to increase such interest.  All capitalized terms used herein are defined in Section 15 below.

 

Section 2                                             Administration.

 

(a)                                  Committees of the Board of Directors.  The Plan may be administered by a Committee.  The Committee shall consist of one or more Directors who have been appointed by the Board of Directors.  The Committee shall have such authority and be responsible for such functions as the Board of Directors has assigned to it by resolution.  If no Committee has been appointed, all of the Board of Directors as a group shall administer the Plan.  Any reference to the Board of Directors in the Plan shall be construed as a reference to the Committee (if any) to whom the Board of Directors have assigned a particular function.

 

(b)                                  Authority of the Board of Directors.  Subject to the provisions of the Plan, the Board of Directors or Committee shall have full authority and discretion to take any actions it deems necessary or advisable for the administration of the Plan.  All decisions, interpretations and other actions of the Board of Directors or Committee shall be binding on all Participants and all persons deriving their rights from a Participant.

 

(c)                                  Special Rules.  When Section 16 of the Exchange Act applies to the Company, to obtain the benefits of Rule 16b-3, all of the members of the Committee or Board of Directors must be composed of individuals satisfying the requirements of that provision or the Award must be made by the Board of Directors. Similarly, when Section 162(m) of the Code applies to the Company, to be exempt from the million dollar compensation deduction limitation of Section 162(m), all of the members of the Committee or Board of Directors must satisfy the requirements of that provision.

 

Section 3                                             Eligibility.

 

Only Employees, Directors and Consultants shall be eligible for the grant of Awards.  However, Incentive Stock Options may only be awarded to Employees. In the event that the Company acquires another entity, the Board of Directors or Committee may authorize the issuance of Substitute Options upon such terms and conditions as the Board of Directors or 

 

 

Committee shall determine, taking into account the limitations of Code Section 424(a) in the case of a Substitute Option that is intended to be an Incentive Stock Option.

 

Section 4                                             Shares Subject to Plan.

 

(a)                                  Basic Limitation.  The aggregate number of shares of Common Stock with respect to which Awards may be granted under this Plan shall be 31,920,700, subject to adjustment pursuant to Section 10.  The number of shares of Common Stock that are subject to Awards outstanding at any time under the Plan shall not exceed the number of shares of Common Stock that then remain available for issuance under the Plan.  The Company, during the term of the Plan, shall at all times reserve and keep available sufficient shares of Common Stock to satisfy the requirements of the Plan.

 

(b)                                  Special Rule.  To comply with Section 162(m), the maximum number of shares that may be issued to a single Participant is 14,467,073.  This number shall be adjusted from time to time as set forth in Section 10.  For this purpose, (i) shares subject to a terminated Option shall be considered outstanding and (ii) the repricing of an Option shall be treated as the issuance of a new Option.

 

(c)                                  Additional Stock.  Any shares of Common Stock that are subject to issuance upon exercise of an Option, but that are not issued because of surrender, lapse, expiration or termination of any such Option prior to issuance of the Common Stock, shall once again be available for issuance in satisfaction of Awards.  Similarly, any shares of Common Stock issued or issuable pursuant to a Restricted Stock Award which are subsequently forfeited or repurchased, or not issued pursuant to the terms of the grant shall once again be available for issuance in satisfaction of Awards.  Any shares of Common Stock that are issued under the Plan but repurchased by the Company shall again become available for issuance pursuant to the Plan.

 

(d)                                  Share Counting Rules.  In the event a Participant pays part or all of the Exercise Price of an Option by surrendering shares of Common Stock that the Optionee previously acquired, only the number of shares issuable to the Optionee in excess of those surrendered shall be taken into account for purposes of determining the maximum number of shares that may be issued under the Plan, both as to that Optionee and in the aggregate (to all Participants).  Similarly, shares that are not issued to a Participant, but rather, are used to satisfy the income tax withholding obligations are not taken into account for purposes of determining the maximum number of shares that may be issued to all Participants under the Plan.

 

Section 5                                             Terms and Conditions of Options.

 

(a)                                  Option Agreement.  Each grant of an Option under the Plan shall be evidenced by an Option Agreement between the Optionee and the Company.  Such Option Agreement shall be subject to all applicable terms and conditions of the Plan and may be subject to any other 

 

2

 

terms and conditions which are not inconsistent with the Plan and which the Committee or the Board of Directors deem appropriate for inclusion in an Option Agreement.  The provisions of the various Option Agreements need not be identical.

 

(b)                                  Number of Shares.  Each Option Agreement shall specify the number of shares of Common Stock that are subject to the Option and shall provide for the adjustment of such number in accordance with Section 10.

 

(c)                                  Exercise Price.  Each Option Agreement shall specify the Exercise Price. The Exercise Price under any Option shall be determined by the Committee or the Board of Directors.  The Exercise Price shall be payable in a form described below.  To the extent necessary to comply with California law, the minimum Exercise Price shall be 85% of the Fair Market Value of the Common Stock on the date of the grant (110% in the case of a grant to a Ten Percent Stockholder).  In the case of an Incentive Stock Option, the minimum Exercise Price shall be 100% of the Fair Market Value of the Common Stock on the date of the grant (110% in the case of a grant to a Ten Percent Stockholder). The exercise price of Stock Options that are intended to be exempt from Section 162(m) shall be at least equal to the Fair Market Value on the date of the grant.

 

(d)                                  Exercisability.  Each Option Agreement shall specify the date when all or any installment of the Option is to become exercisable.  Except as otherwise provided in the Option Agreement and this Plan, including without limitation Section 5(l) hereof, Options shall become exercisable at least as rapidly as 20% on each of the first five anniversaries of the date of grant. Except in the case of Substitute Options, the aggregate Fair Market Value (determined as of the date of grant) of the number of shares of Common Stock with respect to which Incentive Stock Options are exercisable for the first time by an Optionee during any calendar year shall not exceed one hundred thousand dollars ($100,000) or such other limit as may be required by Code Section 422.  To the extent that the Options exceed that limit, they will be treated as Nonstatutory Options (but all of the other provisions of the Option shall remain applicable), with the first Options that were awarded to the Optionee to be treated as Incentive Stock Options.  Subject to the preceding, the vesting provisions of any Option Agreement shall be determined by the Committee or the Board of Directors in their sole discretion.

 

(e)                                  Term.  Options granted hereunder (i) shall be exercisable for a term of not more than ten (10) years from the date of grant and (ii) shall be subject to earlier termination as hereinafter provided or as provided in the Option Agreement.  Notwithstanding the preceding sentence, the term of an Incentive Stock Option granted to a Ten Percent Stockholder will not exceed 5 years.  Each Option Agreement issued hereunder shall specify the term of the option, which term shall be determined by the Committee or the Board of Directors in their sole discretion.

 

3

 

(f)                                    Nontransferability.  No Option shall be transferable other than pursuant to a Permitted Transfer.  An Option may be exercised during the lifetime of the Optionee only by the Optionee or by the Optionee’s guardian or legal representative.

 

(g)                                 Termination of Service (Except by Death or for Cause).  If an Optionee’s Service terminates for any reason other than the Optionee’s death or for Cause, then the Optionee’s Options shall expire on the earliest of the following dates:

 

(i)                                     The expiration date set forth in the Option Agreement;

 

(ii)                                  The date three months after the termination of the Optionee’s Service for any reason other than Disability; or

 

(iii)                               The date six months after the termination of the Optionee’s Service by reason of Disability.

 

The Optionee may exercise all or part of the Optionee’s Options at any time before the expiration of such Options pursuant to the preceding sentence, but only to the extent that such Options had become exercisable before the Optionee’s Service terminated (or became exercisable as a result of the termination) and the underlying Common Stock had vested before the Optionee’s Service terminated (or vested as a result of the termination). The unvested portion of such Options shall lapse when the Optionee’s Service terminates.  In the event that the Optionee dies after the termination of the Optionee’s Service but before the expiration of the Optionee’s Options, all or part of such Options may be exercised (prior to expiration) by the executor or administrator of the Optionee’s estate or by any person who has acquired such Options directly from the Optionee by beneficiary designation, bequest or inheritance, but only to the extent that such Options had become exercisable before the Optionee’s Service terminated (or became exercisable as a result of the termination) and the underlying Common Stock had vested before the Optionee’s Service terminated (or vested as a result of the termination).

 

(h)                                 Termination for Cause.  If the Optionee’s Service is terminated for Cause, then the Optionee’s Options shall lapse upon the date of such termination and shall not thereafter be exercisable as to any Common Stock subject thereto, whether or not the Optionee’s Options are then exercisable as to any Common Stock.

 

(i)                                    Death of Optionee.  If an Optionee dies while the Optionee is in Service, then the Optionee’s Options shall expire on the earlier of the following dates:

 

(i)                                     The expiration date determined pursuant to the Option Agreement; or

 

(ii)                                  The date 12 months after the Optionee’s death.

 

All or part of the Optionee’s Options may be exercised at any time before the expiration of such Options pursuant to the preceding sentence by the executor or administrator of the Optionee’s 

 

4

 

estate or by any person who has acquired such Options directly from the Optionee by beneficiary designation, bequest or inheritance, but only to the extent that such Options had become exercisable before the Optionee’s death (or became exercisable as a result of the death) and the underlying Common Stock had vested before the Optionee’s death (or vested as a result of the death).  The unvested Options shall lapse when the Optionee dies.

 

(j)                                    No Rights as a Stockholder.  An Optionee, or a transferee of an Optionee, shall have no rights as a Stockholder with respect to any Common Stock covered by the Optionee’s Option until (i) such person becomes entitled to receive such Common Stock by filing a notice of exercise, paying the Exercise Price, and performing such other acts as may be required pursuant to the terms of such Option and (ii) such person has satisfied any other requirements imposed on Stockholders or assignees by applicable law or any other agreement among the Stockholders.

 

(k)                                Restrictions on Ownership.  Any Common Stock issued upon exercise of an Option shall be subject to (i) the terms of any agreement among the Stockholders and (ii) such special conditions, rights of repurchase, rights of first refusal and other transfer restrictions including those in Sections 7 and 8 as the Committee or the Board of Directors may determine.

 

(l)                                    Minimum Vesting.  To the extent necessary to comply with California law, in the case of an Optionee who is not (A) an officer of the Company, any Subsidiary or any Parent, (B) a director of the Company, any Subsidiary or any Parent, or (C) a Consultant, any right to exercise the Option shall vest at least as rapidly as 20% per year over the five-year period commencing on the date of the grant.

 

(m)                              Payment for Stock.  An Optionee entitled to exercise an Option may do so by delivery of a written notice to that effect in such form as shall be specified by the Committee or the Board of Directors and specifying the number of whole shares of Common Stock with respect to which the Option is being exercised and any other information the Committee or the Board of Directors may prescribe.  Payment shall be in cash or such other form or forms of consideration as the Committee or Board of Directors shall deem acceptable in its sole discretion, such as the surrender of outstanding shares of Common Stock owned by the Participant for the minimum period of time necessary to avoid adverse accounting treatment (if applicable).  If the payment is made by means of the surrender of shares of Restricted Stock, a number of shares issued upon the exercise of the Option equal to the number of shares of Restricted Stock surrendered shall be subject to the same restrictions as the Restricted Stock that was surrendered.  After giving due consideration to the consequences under Rule 16b-3 and under the Code, the Committee or Board of Directors may also authorize the exercise of Options by Broker’s Transactions.  No shares of Common Stock shall be issued upon exercise of an option until full payment has been made therefore.

 

5

 

Section 6                                             Restricted Stock Awards.

 

(a)                                  Restricted Stock Awards.  Restricted Stock Awards shall be subject to such terms and conditions as the Committee or the Board of Directors may, in their discretion, determine.  Restricted Stock Awards issued under the Plan shall be evidenced by a Restricted Stock Agreement in such form as the Committee or the Board of Directors may from time to time determine.  Restricted Stock Awards may be subject to restrictions which lapse over time.

 

(b)                                  Receipt of Stock.  Each Restricted Stock Agreement shall set forth the number of shares of Common Stock issuable under the Restricted Stock Award evidenced thereby, the price to be paid for such shares by the Participant and the restrictions imposed on such shares.  Subject to the restrictions of Subsections (c), (d) and (e) of this Section 6 and as set forth in the related Restricted Stock Agreement, the number of shares of Common Stock granted under a Restricted Stock Award shall be issued to the recipient Participant thereof on the date of grant of such Restricted Stock Award against immediate payment therefore or as soon as may be practicable thereafter.

 

(c)                                  Rights of Participants.  Common Stock received pursuant to Restricted Stock Awards shall be duly issued or transferred to the Participant.  Subject to the restrictions in Subsection (d) of this Section 6 and as set forth in the related Restricted Stock Agreement, the Participant shall thereupon have all of the rights of a Stockholder with respect to all the Common Stock subject to such Restricted Stock Award, including any voting rights incident to such Common Stock and to receive dividends and other distributions paid with respect to such Common Stock.  As a condition to issuing the Common Stock, the Committee or the Board of Directors may require a Participant to execute an escrow agreement, a stock power that is endorsed in blank, and any other documents which the Committee or the Board of Directors may determine are necessary or appropriate.

 

(d)                                  Nontransferability of Restricted Stock Awards. Until such time as the restrictions set forth in the related Restricted Stock Agreement have lapsed, the Common Stock awarded to a Participant, and any right to vote such Common Stock or receive dividends on such Common Stock, may not be sold, exchanged, transferred, pledged, hypothecated or otherwise disposed of.  However, if authorized by in the Restricted Stock Agreement, such Common Stock may be transferred pursuant to a Permitted Transfer, provided that the underlying shares remain subject to the restrictions contained in the Restricted Stock Agreement.

 

(e)                                  Restrictions.  Common Stock received pursuant to Restricted Stock Awards shall be subject to such terms and conditions as the Committee or the Board of Directors may determine, including, without limitation, restrictions on the sale, assignment, transfer or other disposition of such Common Stock and the requirement that the Participant sell such Common 

 

6

 

Stock back to the Company upon termination of employment for any reason or for specified reasons.

 

(f)                                    Section 162(m) Consequences.  If Restricted Stock is issued by the Company at less than its Fair Market Value, it will not be exempt from Section 162(m).

 

Section 7                                             Repurchase Rights.

 

At the discretion of the Committee or the Board of Directors, any Restricted Stock Agreement or Option Agreement may provide that the Company will have the right and option to repurchase any Common Stock issued to a Participant whose Service has been terminated, and such repurchase shall be upon such terms and conditions as may be established by the Committee or the Board of Directors from time to time and are set forth or otherwise provided for in such Restricted Stock Agreement or Option Agreement.

 

(a)                                  Unvested Shares.  To the extent necessary to comply with California law, in the case of a Participant who is not (1) an officer of the Company, any Subsidiary or any Parent, (2) a director of the Company, any Subsidiary or any Parent, or (3) a Consultant, any right to repurchase the Participant’s unvested shares of Common Stock (A) shall be at the original purchase price upon termination of the Participant’s Service, (B) shall lapse at least as rapidly as 20% per year over the five-year period commencing on the date of the option grant, (C) must be exercised within 90 days after the termination of the Participant’s Service (or within 90 days of the date of the purchase of the Common Stock, if later), and (D) the payment shall be in the form of cash or cancellation of indebtedness incurred in purchasing the Common Stock.

 

(b)                                  Vested Shares.  To the extent necessary to comply with California law, in the case of a Participant who is not (1) an officer of the Company, any Subsidiary or any Parent, (2) a director of the Company, any Subsidiary or any Parent, or (3) a Consultant, with regard to any right to repurchase the Participant’s vested shares of Common Stock (A) the repurchase price shall not be less than the Fair Market Value on the date of Participant’s termination of Service, (B) the Company’s right to repurchase the shares must be exercised within ninety (90) days of the later of the Participant’s termination of Service or the date of the exercise of the Option, (c) the Company must pay the purchase price in cash or cancellation of the purchase money indebtedness for the shares, and (D) the Company’s repurchase right terminates if and when its securities becomes publicly traded.

 

Section 8                                             Right of First Refusal.

 

At the discretion of the Committee or the Board of Directors, any Restricted Stock Agreement or Option Agreement may provide that the Company will have a Right of First Refusal with regard to any proposed sale or other transfer by Participant of any Common Stock issued to a Participant under the Plan (either as a Restricted Stock Award or upon exercise of an

 

7

 

Option), and such Right of First Refusal shall be upon such terms and conditions as may be established by the Committee or the Board of Directors from time to time and are set forth or otherwise provided for in such Restricted Stock Agreement or Option Agreement.

 

Section 9                                             Modification, Extension and Assumption of Awards.

 

Within the limitations of the Plan, the Committee or the Board of Directors may modify, extend or assume outstanding Awards or may accept the cancellation of outstanding Awards (whether granted by the Company or another issuer) in return for the grant of new Awards for the same or a different number of shares of Common Stock and at the same or a different Exercise Price.  The foregoing notwithstanding, no modification of an Award shall, without the consent of the Participant impair the Participant’s rights or increase the Participant’s obligations under such Award.

 

Section 10                                      Adjustment of Stock.

 

(a)                              General.  Subject to Section 10(b) below, in the event of a subdivision of the outstanding Common Stock into a greater number of shares of Common Stock (through a stock split or dividend), a combination or consolidation of the outstanding Common Stock into a lesser number of shares of Common Stock, or a capital reorganization or a reclassification in which the Common Stock is changed into a different kind or number of securities of the Company, the Committee or the Board of Directors shall make appropriate adjustments in one or more of (i) the number and kind of shares of Common Stock available for future grants under this Plan including the number of shares that may be granted to any one individual under Section 4, (ii) the number and kind of shares of Common Stock covered by each outstanding Award or (iii) the Exercise Price under each outstanding Option.  Any such adjustment in an outstanding Option, however, shall be made without change in the total price applicable to the unexercised portion of the Option but with a corresponding adjustment in the price for each share covered by the Option.  The foregoing adjustments and the manner of application of the foregoing provisions shall be determined by the Committee or the Board of Directors in their sole discretion.  Stock dividends, shares resulting from stock splits, etc. that are issued with respect to the shares covered by a grant of Restricted Stock shall be treated as additional shares received under the grant of Restricted Stock.

 

(b)                                  Extraordinary Events.  In the event of a Change in Control, the Plan, all outstanding Restricted Stock Awards and all outstanding Options will be affected as follows:

 

(i)                                     Upon the record or effective date applicable to such Change in Control, each outstanding Option shall automatically terminate on the effective date of the Change in Control, except solely as provided in the next sentence. Notwithstanding the preceding sentence, each Option which has not been assumed or an equivalent option substituted therefore, as provided in the next sentence, by the surviving entity in a Change in Control, shall automatically 

 

8

 

accelerate and become exercisable in whole or in part without regard to the vesting provisions of the Plan or any option agreement (except as provided otherwise in this Section 10(b)) until one business day before the effective date applicable to such Change in Control.  If the terms of the Change in Control provide that the stockholders of the Company shall receive cash or other securities in exchange for their stock in the Company, and the holders of outstanding Restricted Stock are to receive the same consideration, then any Restricted Stock Awards under the Plan shall automatically accelerate without regard to the vesting provisions of the Plan or any restricted stock agreement (except as provided otherwise in this Section 10(b)).  However, if the acquiring or surviving corporation, in its sole and absolute discretion, assumes all Options or issues in respect of all Options substitute options to purchase shares of the acquiring or surviving corporation, which assumed or substitute options contain such terms and provisions as substantially preserve the rights and benefits of the assumed or substituted Options, and in such event the assumed or substituted Options shall not automatically accelerate or become exercisable pursuant to the preceding sentence.

 

(ii)                                  In any case in which an Option automatically accelerates and becomes exercisable without regard to its installment provisions pursuant to the preceding paragraph, the Optionee holding the applicable Option shall be given written notice thereof by the Company at least ten days prior to such record or effective date applicable to such Change in Control, which notice shall advise such Optionee of the proposed event and the rights of the Optionee pursuant to this Section 10(b).  If such notice is not given, the Company or, if applicable, any such acquiring or surviving corporation, shall make such arrangements as are equitable under the circumstances to avoid or reverse any economic detriment suffered by such Optionee as the result of any failure to give such notice, but in no event shall any failure to give such notice affect the validity or effectiveness of any such Change in Control transaction.

 

(iii)                               The Board may, in any specific case or cases, specifically provide, in an option agreement, restricted stock agreement or otherwise, for the treatment of an Option or Restricted Stock Award in a manner different than that set forth above upon the occurrence of a Change in Control, but in the absence thereof the above provisions of this Section 10(b) shall govern the Option or Restricted Stock Award.

 

(iv)                              To the extent that the foregoing adjustments relate to stock or securities of the Company, such adjustments shall be made by the Board, whose determination in that respect shall be final, binding and conclusive. Except as expressly provided above in this Section 10(b), the Participant shall have no rights by reason of any subdivision or consolidation of shares of stock of any class or the payment of any stock dividend or any other increase or decrease in the number of shares of stock of any class, and the number or price of shares of Common Stock subject to any Option shall not be affected by, and no adjustment shall be made by reason of, any dissolution, liquidation, reorganization, merger or consolidation, or any issue by the Company of shares of stock of any class, or rights to purchase or subscribe for stock of any class, or securities convertible into shares of stock of any class.

 

9

 

(v)                                 The grant of an Option or a Restricted Stock Award pursuant to the Plan shall not affect in any way the right or power of the Company to make adjustments, reclassifications or changes in its capital or business structures or to merge, consolidate, dissolve, or liquidate or to sell or transfer all or any part of its business or assets.

 

(vi)                              For purposes of this Section 10(b), (A) an Option is accelerated by accelerating the date or dates on which one or installments of Option Stock are first exercisable, and (B) a Restricted Stock Award is accelerated by releasing on an earlier date the Common Stock subject to the Company’s repurchase right established under the applicable restricted stock agreement.  For purposes of this Section 10(b) only, the Committee shall mean the Committee as constituted immediately prior to the Change in Control.

 

(c)                                  Reservation of Rights.  Except as provided in this Section 10, a Participant shall have no rights by reason of (i) any subdivision or consolidation of shares of the Company, (ii) any other increase or decrease in the number of shares in the Company or (iii) any distribution with respect to outstanding Common Stock.  Any issuance by the Company of shares of any class, or securities convertible into shares of any class, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number of shares of or the Exercise Price of Common Stock subject to an Option.  The grant of an Award pursuant to the Plan shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business structure, to merge, consolidate or exchange its equity securities or to dissolve, liquidate, sell or transfer all or any part of its business or assets.

 

Section 11                                      Securities Law Requirements.

 

(a)                                  General.  Common Stock shall not be issued under the Plan unless the issuance and delivery of such Common Stock complies with (or is exempt from) all applicable requirements of law, including (without limitation) the Securities Act of 1933,as amended, the rules and regulations promulgated thereunder, state corporate or securities laws and regulations, and the regulations of any stock exchange or other securities market on which the Company’s securities may then be traded.  Similarly, a Participant will not be permitted to exercise an Option if such exercise would violate the Company’s internal policies.

 

(b)                                  Financial Reports.  To the extent necessary to comply with California law, the Company each year shall furnish to Stockholders who have purchased Common Stock under the Plan its balance sheet and income statement, unless such Participants are limited to key Employees whose duties with the Company assure them access to equivalent information.  Such balance sheet and income statement need not be audited.

 

10

 

(c)                                  Plan Document.  To the extent necessary to comply with Rule 701 promulgated by the Securities and Exchange Commission, a copy of the Plan will be delivered to each Participant.

 

Section 12                                      No Retention Rights.

 

Nothing in the Plan or in any Award granted under the Plan shall confer upon the Participant any right to continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company (or any Parent or Subsidiary employing or retaining the Participant) or of the Participant, which rights are hereby expressly reserved by each, to terminate his or her Service at any time and for any reason, with or without cause.

 

Section 13                                      Duration and Amendments.

 

(a)                                  Term of the Plan.  The Plan, as set forth herein, shall become effective on the date of its adoption by the Board of Directors, subject to the approval of the Company’s Stockholders.  In the event that the Stockholders fail to approve the Plan within 12 months after its adoption by the Board of Directors, any grants of Awards or sales of Common Stock that have already occurred under the Plan shall be rescinded, and no additional grants or exercises shall be made thereafter under the Plan.  The Plan shall terminate automatically 10 years after its adoption by the Board of Directors and may be terminated on any earlier date pursuant to Subsection (b) below.

 

(b)                                  Right to Amend or Terminate the Plan. The Board of Directors may amend, suspend or terminate the Plan at any time and for any reason.  However, any amendment that (i) increases the number of shares of Common Stock available for issuance under the Plan (except as provided in Section 9) or (ii) changes the class of individuals eligible to receive Incentive Stock Options shall be subject to the approval of the Company’s Stockholders.  Approval of the Stockholders shall not be required for any other amendment of the Plan.

 

(c)                                  Effect of Amendment or Termination. No Common Stock shall be issued or sold under the Plan after the termination thereof, except upon exercise of an Award granted prior to such termination.  The termination of the Plan, or any amendment thereof, shall not affect any Common Stock previously issued or any Award previously granted under the Plan.

 

(d)                                  Written Amendments Only.  The Plan may not be amended other than by a written document executed by the Company.  Furthermore, no Participant may rely upon any statement (oral or written) that is inconsistent with the terms of the plan document.

 

11

 

Section 14                                      Miscellaneous Matters.

 

(a)                                  Withholding Taxes.  As a condition to the purchase of Common Stock pursuant to an Award, the Participant shall make such arrangements as the Committee or the Board of Directors may require for the satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in connection with such purchase.  The Participant shall also make such arrangements as the Committee or the Board of Directors may require for the satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in connection with the disposition of Common Stock acquired under the Plan.

 

(b)                                  Election to Withhold Common Stock. The Committee or the Board of Directors may, in its sole discretion, permit a Participant to satisfy his or her tax liability with respect to the exercise, vesting or settlement of an Award by having the Company withhold Common Stock otherwise issuable upon the exercise, vesting or settlement of an Award.  To the extent necessary to avoid adverse accounting treatment, the number of shares that may be withheld for this purpose shall not exceed the minimum number needed to satisfy the applicable income and employment tax withholding rules.

 

(c)                                  Governing Law.  This Plan and the rights of all persons claiming hereunder shall be construed and determined in accordance with the laws of the State of Delaware without giving effect to the conflicts of laws principles thereof.

 

(d)                                  Fees and Costs.  The Company shall pay all original issue taxes on the exercise of any Award granted under the Plan and all other fees and expenses necessarily incurred by the Company in connection therewith.

 

(e)                                  Awards to Foreign Nationals.  Without amending the Plan, Awards may be granted to Participants who are foreign nationals or who are employed outside of the United States or both, on such terms and conditions different than those specified in the Plan as may, in the judgment of the Committee or the Board of Directors, be necessary or desirable to further the purpose of the Plan.

 

(f)                                    Indemnification. To the maximum extent permitted by law, the Company shall indemnify each member of the Committee and of the Board of Directors, as well as any other Employee of the Company with duties under this Plan, against expenses and liabilities (including any amount paid in settlement) reasonably incurred by the individual in connection with any claims against the individual by reason of the performance of the individual’s duties under this Plan, unless the losses are due to the individual’s lack of good faith.

 

Section 15                                      Definitions.

 

(a)                                  “Award” shall mean any Option or Restricted Stock Award.

 

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(b)                                 “Board of Directors” shall mean the Directors acting as a group.

 

(c)                                  “Broker’s Transaction” shall mean payment made by delivering a properly executed exercise notice together with irrevocable instructions to a broker to promptly deliver to the Company the amount of sale or loan proceeds necessary to pay the exercise price and, unless otherwise allowed by the Board of Directors or Committee, any applicable tax withholding.

 

(d)                                 “Cause” shall mean (i) Participant’s unauthorized use or disclosure of the confidential information or trade secrets of the Company, which use causes material harm to the Company, (ii) Participant’s conviction of, or the entry of a pleading of guilty or nolo contendere by Participant to a felony under the laws of the United States or any state thereof, or a crime involving moral turpitude; (iii) Participant’s gross negligence or willful misconduct or Participant’s continued failure to satisfactorily perform assigned duties after receiving notification from the Company; (iv) an act of fraud or dishonesty committed by Participant against the Company, or (vi) any other misconduct by Participant that is materially injurious to the business or reputation of the Company.

 

(e)                                  “Change in Control” shall mean:

 

(i)                                     The consummation of a merger or consolidation of the Company with or into another entity or any other reorganization, or an exchange of equity interests or other transaction where all the Company’s stockholders immediately prior to such transaction own less than 50% of the outstanding combined voting securities of the continuing or surviving entity immediately after such merger, consolidation or other transaction; or

 

(ii)                                  The consummation of a sale, transfer or other disposition of all or substantially all of the Company’s assets.

 

In no event will the any securities issued in connection with any public offering be treated as, or be used to meet the definition of, a Change in Control.

 

(f)                                    “Code” shall mean the Internal Revenue Code of 1986, as amended.

 

(g)                                 “Committee” shall mean a committee of the Board of Directors, as described in Section 2(a).

 

(h)                                 “Common Stock” shall mean (i) Common Stock of the Company, and (ii) any security into which such Common Stock is converted.

 

(i)                                     “Company” shall mean Boingo Wireless, Inc., a Delaware corporation.

 

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(j)                                     “Consultant” shall mean an individual who performs bona fide services (that are not in connection with the offer or sale of Company securities in a capital-raising transaction) for the Company, a Parent or a Subsidiary as an independent contractor, excluding individuals who are Employees or Directors, or who are employed by an affiliated company that is not a Subsidiary.

 

(k)                                  “Director” shall mean a person who is a member of the Board of Directors of the Company.

 

(l)                                     “Disability” shall mean that the Optionee is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment, which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months.

 

(m)                               “Employee” shall mean any individual who is a common-law employee of the Company, a Parent or a Subsidiary.

 

(n)                                 “Exchange Act” means the Securities Exchange Act of 1934, as amended

 

(o)                                 “Exercise Price” shall mean the amount for which one share of Common Stock may be purchased upon exercise of an Award, as specified by the Board of Directors in the applicable Restricted Stock Agreement or Option Agreement.

 

(p)                                 If the Common Stock is not publicly traded, “Fair Market Value” shall mean the fair market value of a share of Common Stock, as determined by the Board of Directors in its sole discretion.  The determination by the Board of Directors shall be binding on all persons.  In the case of an Incentive Stock Option, “Fair Market Value” shall be determined without reference to any restriction other than one that, by its terms, will never lapse.

 

(q)                                 If the Common Stock is publicly traded, its “Fair Market Value” for any day shall be determined in accordance with the following rules.

 

(i)                                     If the Common Stock is admitted to trading or listed on a national securities exchange, the last reported sale price on that day regular way, or if no such reported sale takes place on that day, the average of the last reported bid and ask prices on that day regular way, in either case on the principal national securities exchange on which the Common Stock is admitted to trading or listed.

 

(ii)                                  If not listed or admitted to trading on any national securities exchange, the last sale price regular way on that day reported on the Nasdaq National Market of the Nasdaq Stock Market (“NSM”), or if no such reported sale 

 

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takes place on that day, the average of the closing bid and ask prices regular way on that day.

 

(iii)                               If not traded or listed on a national securities exchange or included in the Nasdaq National Market, the last reported sale price on that day regular way, or if no such reported sale takes place on that day, the average of the closing bid and ask prices regular way on that day reported by the NSM, or any comparable system on that day.

 

(iv)                              If the Common Stock is not included in (i), (ii) or (iii) above, the last reported sale price on that day regular way, or if no such reported sale takes place on that day, the average of the closing bid and ask prices regular way on that day as furnished by any member of the National Association of Securities Dealers, Inc. (“NASD”) selected from time to time by the Company for that purpose.

 

If the national securities exchange, Nasdaq National Market, NSM, or NASD, whichever is applicable, is closed on such date, the “Fair Market Value” shall be determined as of the last preceding day on which the Common Stock was traded or for which bid and ask prices are available. In the case of an Incentive Stock Option, “Fair Market Value” shall be determined without reference to any restriction other than one that, by its terms, will never lapse.

 

(r)                                    “Incentive Stock Option” means an option to purchase Common Stock that is intended to be an incentive stock option under Section 422 of the Code.

 

(s)                                  “Nonstatutory Option” means any option to purchase Common Stock that is not an Incentive Stock Option.

 

(t)                                    “Option” shall mean an Incentive Stock Option or a Nonstatutory Option.

 

(u)                                 “Option Agreement” shall mean the agreement between the Company and the Participant that contains the terms, conditions and restrictions pertaining to the Participant’s Option.

 

(v)                                 “Optionee” shall mean an individual who holds an Option.

 

(w)                               “Option Stock” shall mean Common Stock issuable upon exercise of an Option.

 

(x)                                   “Parent” shall mean any entity (other than the Company) in an unbroken chain of entities ending with the Company, if each of the entities other than the Company owns shares (or interests, in the case of an entity other than a corporation) possessing 50% or more of the total combined voting power of all classes of shares (or interests, in the case of an entity other than a corporation) in one of the other entities in such chain.  An entity that attains the status of a Parent on a date after the adoption of the Plan shall be considered a Parent commencing as of such date.

 

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(y)                                 “Participant” shall mean Employees, Directors, and Consultants who are granted an Option or a Restricted Stock Award under the Plan.

 

(z)                                   “Permitted Transfer” shall mean, in the case of an Option or Restricted Stock, the transfer of such Option or Restricted Stock by will or the laws of descent and distribution.

 

(aa)                            “Plan” shall mean this Boingo Wireless, Inc. 2001 Stock Incentive Plan.

 

(bb)                          “Restricted Stock” shall mean those shares of Common Stock issued pursuant to a Restricted Stock Award which are subject to the restrictions set forth in the related Restricted Stock Agreement.

 

(cc)                            “Restricted Stock Agreement” shall mean the agreement between the Company and the Participant that contains the terms, conditions and restrictions pertaining to the Participant’s Restricted Stock Award.

 

(dd)                          “Restricted Stock Award” shall mean an award of a number of shares of Common Stock to a Participant subject to payment of consideration, if any, and the restrictions set forth in the Restricted Stock Agreement.

 

(ee)                            “Rule 16b-3” means Rule 16b-3 promulgated by the Securities and Exchange Commission under the Exchange Act.

 

(ff)                                “Section 162(m)” means Code Section 162(m), which imposes a million dollar compensation deduction limitation on amounts paid to certain senior executives.

 

(gg)                          “Service” shall mean service as an Employee, Director, or Consultant.  Service shall be deemed to continue while the Participant is on a bona fide leave of absence, if such leave was approved by the Company in writing and if continued crediting of Service for this purpose is expressly required by the terms of such leave or by applicable law (as determined by the Company).  For purposes of determining the exercisability of an Incentive Stock Option, a Participant who is on a leave of absence that exceeds ninety days will be considered to have incurred a termination of Service on the ninety-first day of the leave of absence, unless the Participant’s rights to reemployment are guaranteed by statute or contract.  If a Participant switches from Employee to Consultant status, that is not treated as a termination of Service for purposes of exercising a Nonstatutory Option.  However, such a switch will result in an Option losing its status as an Incentive Stock Option after ninety days has elapsed since the termination of Service. Thereafter, the Option (if it is exercisable at all) will be treated as a Nonstatutory Stock Option.  A Participant will not be considered to have incurred a termination of Service because of a transfer of employment between the Company, Subsidiary, or Parent.

 

(hh)                          “Stockholder” shall mean an owner of the Common Stock of the Company.

 

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(ii)                                  “Subsidiary” means any entity (other than the Company) in an unbroken chain of entities beginning with the Company, if each of the entities other than the last entity in the unbroken chain owns shares (or interests, in the case of an entity other than a corporation) possessing 50% or more of the total combined voting power of all classes of shares (or interests, in the case of an entity other than a corporation) in one of the other entities in such chain.  An entity that attains the status of a Subsidiary on a date after the adoption of the Plan shall be considered a Subsidiary commencing as of such date.

 

(jj)                                  “Substitute Option” means an Option granted to individuals or entities who had performed services for an entity that was acquired by the Company in substitution of stock options previously granted to those individuals by the acquired entity.

 

(kk)                            “Ten Percent Stockholder” means any person who owns (after taking into account the constructive ownership rules of Section 424(d) of the Code) more than 10% of the combined voting power of all classes of stock of the Company or of any of its Parents or Subsidiaries.

 

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