Document:

Exhibit 10.2

 

RESTRICTED STOCK AWARD

 

	Name:  Sean Wallace	Cogent Communications Holdings, Inc.
	Grant Date: May 11, 2020	2017 Incentive Award Plan (the “Plan”)

 

1.                 
Grant: Effective as of the Grant Date specified above you have been granted 12,000 (twelve thousand) Shares (the “Restricted
Shares”) of Cogent Communications Holdings, Inc. (the “Company”) subject to the vesting
requirement described below.

 

2.                 
Normal Vesting: You will become vested in 25% of the Restricted Shares on June 1, 2021 and in an additional 6.25 % on
each first day of September, December, March and June thereafter, with full vesting occurring on June 1, 2024. (the “Time
Vested Shares”).

 

3.                 
Accelerated Vesting: Notwithstanding Section 2, you will become fully vested in all Restricted Shares upon: (a) the
termination of your employment by reason of death, disability, or retirement, or (b) a Change of Control (even without termination
of employment). Additionally, if your employment is terminated entitling you to severance under the terms of your employment agreement,
then you will vest in the number of Time Vested Shares you would have vested in had you remained employed during the severance
period, which is the number of months used to calculate severance under your employment agreement (e.g., 6 months). Upon
termination of employment other than as provided above you will forfeit any unvested Restricted Shares that have not vested

 

4.                 
Nontransferable: The Restricted Shares or any interest or right therein or part thereof may not be disposed of by transfer,
alienation, anticipation, pledge, hypothecation, encumbrance, assignment or any other means, whether such disposition be voluntary
or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including
bankruptcy), until vested, and any attempted disposition prior thereto shall be null and void and of no effect. The foregoing notwithstanding,
transfers of the Restricted Shares may be permitted for estate planning purposes with the prior written consent of the Committee
and subject in each case to the provisions of the Plan and the same restrictions and forfeiture provisions under this Agreement
that the Restricted Shares had in your hands.

 

5.                 
Dividends/Voting: You will be entitled to vote the Restricted Shares. However, you will only be entitled to receive
any dividends that are paid on the Restricted Shares once they are vested. Any dividends paid on unvested Restricted Shares shall
be held by the Company, without interest thereon and paid to you at the time the Restricted Shares on which such dividends were
paid vest.

 

6.                 
Certificates: The Company shall cause the Restricted Shares to be issued and a stock certificate or certificates representing
the Restricted Shares to be registered in your name or held in book entry form, but if a stock certificate or certificates are
issued, they shall be delivered to, and held in custody by the Company until the Restricted Shares vest. You agree to give to the
Company a stock power for all unvested Restricted Shares. If issued, each such certificate will bear such legends as the Company
may determine.

 

7.                 
No Other Rights: The grant of Restricted Shares under the Plan is a one-time benefit and does not create any contractual
or other right to receive an award of Restricted Shares or benefits in lieu of Restricted Shares in the future. Future awards of
Restricted Shares, if any, will be at the sole discretion of the Company, including, but not limited to, the timing of the award,
the number of shares and vesting provisions. The grant of Restricted Shares under the Plan does not entitle you to any rights to
remain employed with the Company, nor does it constitute a contract of employment.

 

     

     

    

 

8.                 
Miscellaneous: The Restricted Shares are granted under and governed by the terms and conditions of the Plan, as may
be amended from time to time. Defined terms used herein shall have the meaning set forth in the Plan, unless otherwise defined
herein.

 

9.                 
280G:  Notwithstanding anything in this Agreement to the contrary, if the acceleration of vesting and any other payments
to be made you (a “Payment”) would (i) constitute a “parachute payment” under Section 280G
of the Code and (ii) but for this Section 9 be subject to the excise tax imposed by Section 4999 of the Code (the “Excise
Tax”), then either (A) such Payments shall be reduced to the maximum amount that could be paid to you without any
portion of the Payment (after reduction) being subject to the Excise Tax, or (B) the entire Payment, shall be paid if after taking
into account all applicable federal, state and local taxes and the Excise Tax would provide a more favorable net after tax benefit
to you (i.e., because the after tax proceeds to you of the reduced Payments and other benefits under this Agreement would exceed
the after tax proceeds to you of Payments in the absence of any reduction, taking into account the Excise Tax applicable to such
Payments). If a reduction in a Payment is to be made under clause (ii)(A), then the reduction will be made as determined by the
Company in a manner that results in your retaining the largest amounts of Payments which are payable in cash or equity at or as
close to the event giving rise to the change in control as possible, such as by first reducing your rights to any Payments that
are contingent upon the occurrence of later events (such as severance). Any determination of whether any portion of the Payments
constitutes a “parachute payment” within the meaning of Section 280G(b) of the Code, shall be made by a nationally
recognized accounting firm selected by the Company, which may make reasonable assumptions and approximations concerning applicable
taxes and may rely on reasonable good faith interpretations concerning the application of Sections 280G and 4999 of the Code. In
no event will the Company or any stockholder be liable to Executive for any amounts not paid as a result of the operation of this
Section 9.

 

Cogent Communications Holdings, Inc.

 

	By:	/s/ Dave Shaeffer	 
	 	Dave Schaeffer
	 	CEO

 

    2Exhibit 10.3

 

Severance Agreement

 

1.     
This agreement is entered into by Cogent Communications, Inc. (“Cogent”) and the executive employee signing
this Agreement, below (“Executive”).

 

2.     
As an inducement for Executive to focus his or her full efforts on Cogent’s business without undue concern for future
employment the Compensation Committee of the Cogent Board of Directors has approved the following minimum severance provisions
for Executive.

 

3.     
If Executive is terminated other than for Cause (as defined below) or Executive terminates his or her employment for Good
Reason (as defined below), Executive shall continue to receive his or her salary (reduced by all mandatory withholdings for taxes
or other governmentally required payments such as garnishments) for 6 months following the date of termination, i.e. Executive
shall be paid through the 183rd day following the date of termination. However, if the termination follows a Change
of Control (as defined below) such payment shall be made as a lump sum within 5 days of termination. Salary means Executive’s
regular salary (excluding bonuses, income from vesting of restricted stock, dividends paid on unvested and vested stock, and other
similar elements of compensation that are not regular salary) before voluntary withholdings and reductions (such as those for parking,
401(k) plan, medical, dental, and life insurance) and before mandatory withholdings for taxes and other governmentally required
payments such as garnishments. At the election of Executive, the employee share of the cost of benefits (provided in paragraph
4) may be paid through a salary reduction agreement (in order to make such payments with pre-tax income).

 

4.     
If Executive is terminated other than for Cause or Executive terminates his or her employment for Good Reason, Executive
shall continue to receive through the last day of the sixth month following the month in which termination occurs health insurance,
dental insurance, life insurance (to the extent paid by the company), and long term disability insurance. Cogent shall pay the
company share of such benefits and Executive shall pay the employee share, e.g. the employee portion of the premium for health
and dental insurance. The employee share and company share shall be the same as currently applicable to the benefits at the time
of termination.

 

5.      For purposes
of this agreement, Cogent shall have "Cause" to terminate the Executive's employment hereunder (i) upon the Executive's
conviction for the commission of an act or acts constituting a felony under the laws of the United States or any state thereof,
or (ii) upon the Executive's willful and continued failure to substantially perform his or her duties hereunder (other than any
such failure resulting from the Executive's incapacity due to physical or mental illness), after written notice has been delivered
to the Executive by Cogent, which notice specifically identifies the manner in which the Executive has not substantially performed
his duties, and the Executive's failure to substantially perform his duties is not cured within ten (10) business days after notice
of such failure has been given to the Executive. No act or failure to act on the Executive's part shall be deemed "willful"
unless done or omitted to be done, by the Executive not in good faith and without reasonable belief that the Executive's act, or
failure to act, was in the best interest of Cogent.

 

     

     

    

 

6.      "Good
Reason" shall mean the occurrence (without the Executive's express written consent) of any one of the following:

 

		a.	the assignment to Executive of duties inconsistent with the Executive's status as a senior executive officer of the Company
or a substantial adverse alteration in the nature or status of the Executive's responsibilities; or

 

		b.	a reduction in Executive's regular salary; or

 

		c.	relocation of Executive's principal place of employment outside of the Washington, DC area.

 

7.      “Change
of Control” shall mean any of the following: (i) a consolidation, merger or reorganization of Cogent Communications Holdings,
Inc. with or into any other corporation or corporations in which the stockholders of Cogent Communications Holdings, Inc. immediately
before such event shall own fifty percent (50%) or less (calculated on an as converted basis, fully diluted) of the voting securities
of the surviving corporation; (ii) a transaction or series of related transactions, other than an underwritten public offering,
in which at least fifty percent (50%) of Cogent Communications Holdings, Inc.’s voting power is transferred; (iii) the sale,
transfer or lease of all or substantially all of the assets of Cogent Communications Holdings, Inc.; (iv) the acquisition of shares
of capital stock of Cogent Communications Holdings, Inc. (whether through a direct issuance by Cogent Communications Holdings,
Inc., negotiated stock purchase, a tender for such shares, merger, consolidation or otherwise) by any party or group that did not
beneficially own a majority of the voting power of the outstanding shares of capital stock of Cogent Communications Holdings, Inc.
immediately prior to such purchase, the effect of which is that such party or group beneficially owns at least a majority of such
voting power immediately after such event; or (v) the consummation by Cogent Communications Holdings, Inc. of a plan of complete
liquidation of Cogent Communications Holdings, Inc.

 

8.      Executive's
continued employment shall not constitute consent to, or a waiver of rights with respect to any act or failure to act constituting
Good Reason hereunder. Notwithstanding the foregoing, a termination shall not be treated as a Termination for Good Reason if the
Executive shall have consented in writing to the occurrence of the event giving rise to the claim of Termination for Good Reason.

 

9.      Executive
shall be entitled to the indemnification set forth in the certificate of organization of any entity for which he or she performs
services to the maximum extent permitted by law. Executive shall also be entitled to the protection of any insurance policies Cogent
may elect to maintain generally for the benefit of its directors and officers.

 

10.    Executive agrees that he or she
remains an employee at will whose employment may be terminated at any time with or without cause.

 

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11.    Cogent agrees that Executive
is giving consideration for this agreement by relying upon its provisions in determining whether or not to seek other employment.

 

Accepted and agreed to:

 

	 	Cogent Communications, Inc.	Executive	 

 

 

	By:	 	 /s/ Dave Schaeffer 	 	 	 	/s/ Sean Wallace
	Name: 	 	Dave Schaeffer 	 	Name: 	 	Sean Wallace
	Title: 	 	CEO 	 	Date: 	 	May 11, 2020
	Date:	 	 May 11, 2020	 	 

 

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