EXHIBIT G
CONVERSION AND LOCK-UP LETTER AGREEMENT
February 9, 2005
Cogent Communications Group, Inc.
0000 00xx Xxxxxx, X.X.
Xxxxxxxxxx, XX 00000
Re: COGENT COMMUNICATIONS GROUP INC.
Ladies and Gentlemen:
THIS CONVERSION AND LOCK-UP LETTER AGREEMENT (this "Agreement") is
made as of the 9th day of February, 2005 by and among (i) Cogent Communications
Group, Inc., a Delaware corporation (the "Company") and (ii) those stockholders
of the Company whose names are set forth on Schedule I hereto (the
"Stockholders").
The Company understands that the Stockholders propose to convert
their shares of the Company's Series F Participating Convertible Preferred
Stock, par value $.001 per share (the "Series F Preferred Stock"), Series G
Participating Convertible Preferred Stock, par value $.001 per share (the
"Series G Preferred Stock"), Series I Participating Convertible Preferred Stock,
par value $.001 per share (the "Series I Preferred Stock"), Series J
Participating Convertible Preferred Stock, par value $.001 per share (the
"Series J Preferred Stock"), Series K Participating Convertible Preferred Stock,
par value $.001 per share (the "Series K Preferred Stock"), Series L
Participating Convertible Preferred Stock, par value $.001 per share (the
"Series L Preferred Stock") and Series M Participating Convertible Preferred
Stock, par value $.001 per share (the "Series M Preferred Stock" and together
with the Series F Preferred Stock, the Series G Preferred Stock, the Series I
Preferred Stock, the Series J Preferred Stock, the Series K Preferred Stock, and
the Series L Preferred Stock, the "Preferred Stock") into shares of the
Company's common stock, par value $.001 per share (the "Common Stock") and with
respect to such shares of Preferred Stock that are converted into shares of
Common Stock and any other shares of Common Stock now or hereafter beneficially
owned by the Stockholders, which conversion will occur concurrently with the
conversion of all outstanding shares of the Company's Series H Participating
Convertible Preferred Stock, par value $.001 per share, the undersigned
Stockholders hereby irrevocably agree as follows:
(i) that the public trading price of the Company's Common Stock on
the American Stock Exchange at the close of the third (3rd) business day after
the issuance by the Company of a press release disclosing that the holders of
Preferred Stock intend to convert such shares of Preferred Stock into shares of
Common Stock (the "Announcement") shall be the price at which the value of each
Stockholder's shares in the Company, including shares of Common Stock and shares
of Preferred Stock (on an as-if-converted-to-Common Stock basis), is determined
(the "Controlling Price") for purposes only of Section (iii) hereof;
(ii) that on the fifth (5th) business day after the Announcement,
each Stockholder shall deliver to the Company written notice ("Written Notice")
of such Stockholder's dollar value of Common Stock owned, including in such
dollar amount the assumed conversion of all of such Stockholder's shares of
Preferred Stock, at the Controlling Price (the "Stockholder's Value") and
furthermore, such Written Notice shall include such Stockholder's intention of
pursuing the course of action mandated by Section (iii)(x), (iii)(y) or (iii)(z)
of this Agreement, as the case may be;
(iii) that (x) if the Stockholder's Value is equal to or greater than
fifty million dollars ($50,000,000) and if such Stockholder is not otherwise
exempt from making an HSR Filing (as defined below), then such Stockholder shall
make all necessary filings under the Xxxx-Xxxxx-Xxxxxx Antitrust Improvements
Act of 1976, as amended, and the rules and regulations thereunder ("HSR Filing")
within ten (10) business days of providing Written Notice, or (y) if the
Stockholder's Value is less than fifty million dollars ($50,000,000) but equal
to or greater than twenty five million dollars ($25,000,000) and if such
Stockholder is not otherwise exempt from making an HSR Filing, then such
Stockholder shall either elect to make an HSR Filing within ten (10) business
days of providing Written Notice or elect to convert such Stockholder's shares
of Preferred Stock into shares of Common Stock, the conversion of which shall
occur immediately after all of the holders of Preferred Stock who have elected
to make an HSR Filing have made such HSR Filing, or (z) if the Stockholder's
Value is less than twenty five million dollars ($25,000,000), then such
Stockholder is not required to take any action;
(iv) that the Stockholders will not, without the unanimous prior
written consent of the Company and all the other Stockholders, directly or
indirectly, during a period of one hundred eighty (180) days from the date of
this Agreement (the "Lock-Up Period"), issue, sell, offer or agree to sell,
grant any option for the sale of, pledge, make any short sale or maintain any
short position, establish or maintain a "put equivalent position" (within the
meaning of Rule 16-a-1(h) under the Securities Exchange Act of 1934, as amended
("The Act") enter into any swap, derivative transaction or other arrangement
that transfers to another, in whole or in part, any of the economic consequences
of ownership of the Common Stock (whether any such transaction is to be settled
by delivery of Common Stock, other securities, cash or other consideration) or
otherwise dispose of, any Common Stock (or any securities convertible into,
exercisable for or exchangeable for Common Stock) or interest therein of the
Company (all of the foregoing transactions shall together be known as
"Transactions"), provided, however, that (x) prohibitions with respect to any
Transactions shall not apply to the number of shares of Common Stock set forth
next to each Stockholder's name on Schedule II hereto (the "Exempted Shares")
and furthermore that (y) Transactions (including without limitation distribution
to the general partner or limited partners of a Stockholder) may only be made
with respect to such number of Exempted Shares in any calendar month as set
forth on Schedule III hereto and provided, further, that the foregoing
prohibitions shall not apply to a Permitted UFO Transfer;
(v) that the Stockholders authorize the Company during the Lock-Up
Period to cause the transfer agent (1) to decline to transfer and/or (2) to note
stop transfer restrictions on the transfer books and records of the Company
and/or (3) to place appropriate legends on the certificates with respect to any
shares of Common Stock and any securities convertible into exercisable or
exchangeable for Common Stock for which the undersigned is the record holder
and, in the case of any such share or securities for which the undersigned is
the beneficial but not the record holder, agrees to cause the record holder to
cause the transfer agent (1) to decline to transfer and/or (2) to note stop
transfer restrictions on such books and records with respect to such shares or
securities and/or (3) to place appropriate legends on the certificates; and
2
(vi) that the Stockholders will, upon the sale of any shares of
Common Stock or any other transaction requiring filing a Form 4 under Section 16
of The Act on or before April 26, 2005, enter into a settlement agreement with
the Company in the form attached hereto as Schedule IV (the "Settlement
Agreement") prior to the filing of such Form 4 with the SEC with respect to such
sale or transaction, and will deliver payment to the Company within five (5)
business days of entering into the Settlement Agreement the amount equal to the
short swing profits captured by such Stockholder as a result of such sale
requiring a Form 4 filing, calculated pursuant to Section 16 of The Act.
The undersigned Stockholders further agree, from the date hereof
until the end of the Lock-Up Period, that the undersigned will not exercise and
will waive his, her or its rights, if any, to require the Company to register
its Common Stock and to receive notice thereof, and further acknowledges that
the Company reserves the right to diligently pursue and prosecute any of the
undersigned acting in contravention of the foregoing; provided, however, that
the foregoing prohibition shall not apply to any registration initiated by the
Company for which the undersigned Stockholders are entitled to receive notice
thereof and to exercise "piggyback" registration rights.
A "Permitted UFO Transfer" shall mean a transfer by UFO
Communications, Inc., of all, but not less than all of the capital stock of the
Company that it holds at the time of the transfer to any one or more of Paladin
Capital Partners Fund, L.P., Xxxxx Xxxxxx Pacific Friends Fund, LLC, or Xxxxx
Xxxxxx Pacific, L.P., pursuant to which the number of Exempted Shares allocated
to UFO Communicatons, Inc. is reduced to zero and the number of Exempted Shares
allocated to the transferee(s) is not increased.
The undersigned Stockholders hereby represent and warrant that the
undersigned has full power and authority to enter into this Agreement, and that,
upon request, the undersigned will execute any additional documents necessary in
connection with enforcement hereof. Any obligations of the undersigned shall be
binding upon the successors and assigns of the undersigned.
This Agreement shall terminate and be of no further force and effect
upon the consummation of a firmly underwritten public offering of the Common
Stock pursuant to an effective registration statement under the Securities Act
of 1933, as amended.
3
[Signature Page to Conversion and Lock-Up Letter Agreement]
Very truly yours,
OAK INVESTMENT PARTNERS IX,
LIMITED PARTNERSHIP
By: Oak Associates IX, LLC, its General Partner
By: /s/ Xxxxxx Xxxxxxxxxx
------------------------------------------------
Name: Xxxxxx Xxxxxxxxxx
Title: Managing Member
OAK IX AFFILIATES FUND, LIMITED PARTNERSHIP
By: Oak IX Affiliates, LLC, its General Partner
By: /s/ Xxxxxx Xxxxxxxxxx
-----------------------------------------------
Name: Xxxxxx Xxxxxxxxxx
Title: Managing Member
OAK IX AFFILIATES FUND-A, LIMITED PARTNERSHIP
By: Oak Associates IX, LLC, its General Partner
By: /s/ Xxxxxx Xxxxxxxxxx
-----------------------------------------------
Name: Xxxxxx Xxxxxxxxxx
Title: Managing Member
4
[Signature Page to Conversion and Lock-Up Letter Agreement]
JERUSALEM VENTURE PARTNERS III, L.P.
By: Jerusalem Partners III, L.P., its General Partner
By: Jerusalem Venture Partners Corporation, its
General Partner
By: /s/ Xxxx Xxxxxxxx
--------------------------------------------------
Name: Xxxx Xxxxxxxx
JERUSALEM VENTURE PARTNERS III
(ISRAEL), L.P.
By: Jerusalem Venture Partners III (Israel) Management
Company Ltd., its General Partner
By: /s/ Xxxx Xxxxxxxx
--------------------------------------------------
Name: Xxxx Xxxxxxxx
JERUSALEM VENTURE PARTNERS
ENTREPRENEURS FUND III, L.P.
By: Jerusalem Partners III, L.P., its General Partner
By: Jerusalem Venture Partners Corporation, its
General Partner
By: /s/ Xxxx Xxxxxxxx
-------------------------------------------------
Name: Xxxx Xxxxxxxx
5
[Signature Page to Conversion and Lock-Up Letter Agreement]
JERUSALEM VENTURE PARTNERS IV, L.P.
By: Jerusalem Partners IV, L.P., its General Partner
By: JVP Corp IV, its General Partner
By: /s/ Xxxx Xxxxxxxx
--------------------------------------------------
Name: Xxxx Xxxxxxxx
JERUSALEM VENTURE PARTNERS IV (Israel), L.P.
By: Jerusalem Partners IV - Venture Capital, L.P.,
its General Partner
By: JVP Corp IV, its General Partner
By: /s/ Xxxx Xxxxxxxx
--------------------------------------------------
Name: Xxxx Xxxxxxxx
JERUSALEM VENTURE PARTNERS IV-A, L.P.
By: Jerusalem Venture Partners IV, L.P., its General
Partner
By: JVP Corp IV, its General Partner
By: /s/ Xxxx Xxxxxxxx
--------------------------------------------------
Name: Xxxx Xxxxxxxx
JERUSALEM VENTURE PARTNERS
ENTREPRENEURS FUND IV, L.P.
By: Jerusalem Venture Partners IV, L.P., its General
Partner
By: JVP Corp IV, its General Partner
By: /s/ Xxxx Xxxxxxxx
--------------------------------------------------
Name: Xxxx Xxxxxxxx
6
[Signature Page to Conversion and Lock-Up Letter Agreement]
WORLDVIEW TECHNOLOGY PARTNERS III, L.P.
WORLDVIEW TECHNOLOGY INTERNATIONAL III, L.P.
WORLDVIEW STRATEGIC PARTNERS III, L.P.
WORLDVIEW III CARRIER FUND, L.P.
By: Worldview Capital III, L.P., its General Partner
By: /s/ Xxxxx Xxxx
----------------------------------------------------
Name: Xxxxx Xxx
WORLDVIEW TECHNOLOGY
PARTNERS IV, L.P.
WORLDVIEW TECHNOLOGY
INTERNATIONAL IV, L.P.
WORLDVIEW STRATEGIC PARTNERS IV, L.P.
By: Worldview Capital IV, L.P., its General Partner
By: /s/ Xxxxx Xxx
----------------------------------------------------
Name: Xxxxx Xxx
7
[Signature Page to Conversion and Lock-Up Letter Agreement]
BCP CAPITAL, L.P.
By: BCP General LLC, its General Partner
By: /s/ Xxxxxx X. Xxxxxx
--------------------------------------------
Name: Xxxxxx X. Xxxxxx
Title: Managing Director
BCP CAPITAL QPF, L.P.
By: BCP General LLC, its General Partner
By: /s/ Xxxxxx X. Xxxxxx
--------------------------------------------
Name: Xxxxxx X. Xxxxxx
Title: Managing Director
BCP AFFILIATES FUND LLC
By: BCP Capital Management LLC, its Manager
By: /s/ Xxxxxx X. Xxxxxx
--------------------------------------------
Name: Xxxxxx X. Xxxxxx
Title: Managing Director
BROADVIEW BCPSBS
By:
By: /s/ Xxxxxx X. Xxxxxx
---------------------------------------------
Name: Xxxxxx X. Xxxxxx
Title: Managing Director
8
[Signature Page to Conversion and Lock-Up Letter Agreement]
BOULDER VENTURES IV, L.P.
By: /s/ Xxxxxx X. Xxxxx
----------------------------------------
Name: Xxxxxx X. Xxxxx
Title: General Partner
BOULDER VENTURES IV (ANNEX), L.P.
By: /s/ Xxxxxx X. Xxxxx
---------------------------------------
Name: Xxxxxx X. Xxxxx
Title: General Partner
9
[Signature Page to Conversion and Lock-Up Letter Agreement]
NAS PARTNERS I L.L.C.
By: Nassau Capital LLC, its General Partner
By: /s/ Xxxxxxx X. Hack
-------------------------------------------
Name: Xxxxxxx X. Hack
Title: Managing Member
NASSAU CAPITAL PARTNERS IV L.P.
By: Nassau Capital LLC, its General Partner
By: /s/ Xxxxxxx X. Hack
--------------------------------------------
Name: Xxxxxxx X. Hack
Title: Managing Member
10
[Signature Page to Conversion and Lock-Up Letter Agreement]
CISCO SYSTEMS CAPITAL CORPORATION
By: /s/ Xxxxx X. Xxxxx
------------------------------------
Name: Xxxxx X. Xxxxx
Title: President
11
[Signature Page to Conversion and Lock-Up Letter Agreement]
BNP EUROPE TELECOM & MEDIA FUND II, LP
By: /s/ Xxxxxx Xxxxxxxxx
-----------------------------------------------
/s/ Xxxxxx Xxxxxxx
-----------------------------------------------
Name: Xxxxxx Xxxxxxxxx & Xxxxxx Xxxxxxx
Title: Authorized Signatories
By: General Business, Finance and Investment Ltd.,
its General Partner, and
By: Commerce Advisory Services Ltd, as Director and
Partnership Secretary
NATIO VIE DEVELOPPEMENT 3, FCPR
By: /s/ Xxxxxxx d'Hotelans
---------------------------------------------
Name: Xxxxxxx d'Hotelans
Title: Directeur Associe
12
[Signature Page to Conversion and Lock-Up Letter Agreement]
UFO COMMUNICATIONS, INC.
By: /s/ Xxx Xxxxxxxx
------------------------------
Name: Xxx Xxxxxxxx
Title: Chairman
13
[Signature Page to Conversion and Lock-Up Letter Agreement]
PALADIN CAPITAL PARTNERS FUND, L.P.
By: Paladin General Holdings, LLC
Its General Partner
By: /s/ Xxxxx X. Xxxxx, Xx.
-------------------------------------
Name: Xxxxx X. Xxxxx, Xx.
Title: President
WORLDWIDE INVESTMENTS, LLC
By: Worldwide Assets, Inc., its Sole Member
By: /s/ Xxxxx X. Xxxxx, Xx.
------------------------------------
Name: Xxxxx X. Xxxxxx
Title: Chairman & Chief Executive Officer
0000 XXXX. XXX. INVESTMENTS, LLC
By: /s/ Xxxxxxx X. Xxxxx
-------------------------------------
Name: Xxxxxxx X. Xxxxx
Title: President
14
[Signature Page to Conversion and Lock-Up Letter Agreement]
XXXXX XXXXXX PACIFIC, L.P.
By: Xxxxx Xxxxxx Pacific Advisors, LLC, its
General Partner
By: /s/ Xxx Xxxxxxxx
----------------------------------------
Name: Xxx Xxxxxxxx
Title: Member
XXXXX XXXXXX PACIFIC FRIENDS FUND, LLC
By: Xxxxx Xxxxxx Pacific Advisors, LLC, its
Managing Member
By: /s/ Xxx Xxxxxxxx
----------------------------------------
Name: Xxx Xxxxxxxx
Title: Member
BROADMARK CAPITAL, L.L.C.
By: /s/ Xxxxxx X. Xxxxxxxx
----------------------------------------
Name: Xxxxxx X. Xxxxxxxx
Title: President
15
[Signature Page to Conversion and Lock-Up Letter Agreement]
GLOBAL ACCESS TELECOMMUNICATIONS, INC.
By: /s/ Xxxx X. Xxxxx
----------------------------------------
Name: Xxxx X. Xxxxx
Title: Vice President
16
[Signature Page to Conversion and Lock-Up Letter Agreement]
COLUMBIA VENTURES CORPORATION
By: /s/ Xxxxxxx Xxxxxxxx
---------------------------------------
Name: Xxxxxxx Xxxxxxxx
Title: Chief Executive Officer
17
[Signature Page to Conversion and Lock-Up Letter Agreement]
APPLEGREEN CAPITAL, INC.
By: /s/ Xxxxx Xxxx
--------------------------------------
Name: Xxxxx Xxxx
Title: President
18
[Signature Page to Conversion and Lock-Up Letter Agreement]
KARSTEN BLUE
/s/ Karsten Blue
--------------------------------------------
19
Schedule I
------------------------------------------------------------------
STOCKHOLDERS PARTY TO THE AGREEMENT
------------------------------------------------------------------
Oak Investment Partners IX, Limited Partnership
------------------------------------------------------------------
Oak IX Affiliates Fund, Limited Partnership
------------------------------------------------------------------
Oak IX Affiliates Fund-A Limited Partnership
------------------------------------------------------------------
Boulder Ventures III (Annex), LP
------------------------------------------------------------------
Boulder Ventures III, LP
------------------------------------------------------------------
Boulder Ventures IV (Annex), LP
------------------------------------------------------------------
Boulder Ventures IV, LP
------------------------------------------------------------------
BCP Capital QPF, L.P.
------------------------------------------------------------------
BCP Capital, L.P.
------------------------------------------------------------------
BCP Affiliates Fund LLC
------------------------------------------------------------------
Broadview BCPSBS
------------------------------------------------------------------
Nassau Capital Partners IV, LP
------------------------------------------------------------------
NAS Partners I, LLC
------------------------------------------------------------------
Worldview Technology Partners III, LP
------------------------------------------------------------------
Worldview Technology International III, LP
------------------------------------------------------------------
Worldview Strategic Partners III, LP
------------------------------------------------------------------
Worldview III Carrier Fund, LP
------------------------------------------------------------------
Worldview Technology Partners IV, LP
------------------------------------------------------------------
Worldview Technology International IV, LP
------------------------------------------------------------------
Worldview Strategic Partners IV, LP
------------------------------------------------------------------
Jerusalem Venture Partners III, LP
------------------------------------------------------------------
Jerusalem Venture Partners Entrepreneurs Fund, III, LP
------------------------------------------------------------------
Jerusalem Venture Partners III (Israel) LP
------------------------------------------------------------------
Jerusalem Venture Partners IV, LP
------------------------------------------------------------------
Jerusalem Venture Partners IV-A, LP
------------------------------------------------------------------
Jerusalem Venture Partners Entrepreneurs Fund IV, L.P.
------------------------------------------------------------------
Jerusalem Venture Partners IV (Israel), LP
------------------------------------------------------------------
Cisco Systems Capital Corporation
------------------------------------------------------------------
BNP -Europe Telecom & Media Fund II, LP
------------------------------------------------------------------
Natio Vie Development 3, FCPR
------------------------------------------------------------------
Xxxxx Xxxxxx Pacific, L.P.
------------------------------------------------------------------
Xxxxx Xxxxxx Pacific Friends Fund, LLC
------------------------------------------------------------------
Paladin Capital Partners Fund, L.P.
------------------------------------------------------------------
UFO Communications, Inc
------------------------------------------------------------------
Global Access Telecommunications, Inc.
------------------------------------------------------------------
Columbia Ventures Corporation
------------------------------------------------------------------
Applegreen Capital, Inc
------------------------------------------------------------------
Broadmark Capital
------------------------------------------------------------------
0000 Xxxx. Xxx. Investments, LLC
------------------------------------------------------------------
Worldwide Investments, LLC
------------------------------------------------------------------
Karsten Blue
------------------------------------------------------------------
20
Schedule II
--------------------------------------------------------------------- -------------------------------------------------------
STOCKHOLDER NUMBER OF EXEMPTED SHARES
--------------------------------------------------------------------- -------------------------------------------------------
Oak Investment Partners IX, Limited Partnership 1,978,706
--------------------------------------------------------------------- -------------------------------------------------------
Oak IX Affiliates Fund, Limited Partnership 21,380
--------------------------------------------------------------------- -------------------------------------------------------
Oak IX Affiliates Fund-A Limited Partnership 47,142
--------------------------------------------------------------------- -------------------------------------------------------
Boulder Ventures III (Annex), LP 255
--------------------------------------------------------------------- -------------------------------------------------------
Boulder Ventures III, LP 8,258
--------------------------------------------------------------------- -------------------------------------------------------
Boulder Ventures IV (Annex), LP 379,159
--------------------------------------------------------------------- -------------------------------------------------------
Boulder Ventures IV, LP 29,817
--------------------------------------------------------------------- -------------------------------------------------------
BCP Capital QPF, L.P. 761,044
--------------------------------------------------------------------- -------------------------------------------------------
BCP Capital, L.P. 162,745
--------------------------------------------------------------------- -------------------------------------------------------
BCP Affiliates Fund LLC 12,037
--------------------------------------------------------------------- -------------------------------------------------------
Broadview BCPSBS 26
--------------------------------------------------------------------- -------------------------------------------------------
Nassau Capital Partners IV, LP 439,636
--------------------------------------------------------------------- -------------------------------------------------------
NAS Partners I, LLC 6,286
--------------------------------------------------------------------- -------------------------------------------------------
Worldview Technology Partners III, LP 759,852
--------------------------------------------------------------------- -------------------------------------------------------
Worldview Technology International III, LP 187,284
--------------------------------------------------------------------- -------------------------------------------------------
Worldview Strategic Partners III, LP 16,793
--------------------------------------------------------------------- -------------------------------------------------------
Worldview III Carrier Fund, LP 41,741
--------------------------------------------------------------------- -------------------------------------------------------
Worldview Technology Partners IV, LP 417,589
--------------------------------------------------------------------- -------------------------------------------------------
Worldview Technology International IV, LP 68,104
--------------------------------------------------------------------- -------------------------------------------------------
Worldview Strategic Partners IV, LP 3,480
--------------------------------------------------------------------- -------------------------------------------------------
Jerusalem Venture Partners III, LP 982,589
--------------------------------------------------------------------- -------------------------------------------------------
Jerusalem Venture Partners Entrepreneurs Fund, III, LP 75,152
--------------------------------------------------------------------- -------------------------------------------------------
Jerusalem Venture Partners III (Israel) LP 27,921
--------------------------------------------------------------------- -------------------------------------------------------
Jerusalem Venture Partners IV, LP 1,324,033
--------------------------------------------------------------------- -------------------------------------------------------
Jerusalem Venture Partners IV-A, LP 11,245
--------------------------------------------------------------------- -------------------------------------------------------
Jerusalem Venture Partners Entrepreneurs Fund IV, L.P. 11,877
--------------------------------------------------------------------- -------------------------------------------------------
Jerusalem Venture Partners IV (Israel), LP 31,952
--------------------------------------------------------------------- -------------------------------------------------------
Cisco Systems Capital Corporation 1,471,766
--------------------------------------------------------------------- -------------------------------------------------------
BNP -Europe Telecom & Media Fund II, LP 1,746,049
--------------------------------------------------------------------- -------------------------------------------------------
Natio Vie Development 3, FCPR 100,348
--------------------------------------------------------------------- -------------------------------------------------------
Xxxxx Xxxxxx Pacific, L.P. 169,295
--------------------------------------------------------------------- -------------------------------------------------------
Xxxxx Xxxxxx Pacific Friends Fund, LLC 5,712
--------------------------------------------------------------------- -------------------------------------------------------
Paladin Capital Partners Fund, L.P. 129,783
--------------------------------------------------------------------- -------------------------------------------------------
UFO Communications, Inc 73,588
--------------------------------------------------------------------- -------------------------------------------------------
Global Access Telecommunications, Inc. 111,627
--------------------------------------------------------------------- -------------------------------------------------------
Columbia Ventures Corporation 1,337,969
--------------------------------------------------------------------- -------------------------------------------------------
Applegreen Capital, Inc 1,527
--------------------------------------------------------------------- -------------------------------------------------------
Broadmark Capital 4,549
--------------------------------------------------------------------- -------------------------------------------------------
0000 Xxxx. Xxx. Investments, LLC 2,542
--------------------------------------------------------------------- -------------------------------------------------------
Worldwide Investments, LLC 2,542
--------------------------------------------------------------------- -------------------------------------------------------
Karsten Blue 12,403
--------------------------------------------------------------------- -------------------------------------------------------
21
Schedule III
--------------------------------------------------------------------- -------------------------------------------------------
STOCKHOLDER MAXIMUM NUMBER OF EXEMPTED SHARES THAT MAY BE SUBJECT
TO A TRANSACTION PER CALENDAR MONTH
--------------------------------------------------------------------- -------------------------------------------------------
Oak Investment Partners IX, Limited Partnership 329,784
--------------------------------------------------------------------- -------------------------------------------------------
Oak IX Affiliates Fund, Limited Partnership 3,563
--------------------------------------------------------------------- -------------------------------------------------------
Oak IX Affiliates Fund-A Limited Partnership 7,857
--------------------------------------------------------------------- -------------------------------------------------------
Boulder Ventures III (Annex), LP 42
--------------------------------------------------------------------- -------------------------------------------------------
Boulder Ventures III, LP 1,376
--------------------------------------------------------------------- -------------------------------------------------------
Boulder Ventures IV (Annex), LP 63,193
--------------------------------------------------------------------- -------------------------------------------------------
Boulder Ventures IV, LP 4,969
--------------------------------------------------------------------- -------------------------------------------------------
BCP Capital QPF, L.P. 126,841
--------------------------------------------------------------------- -------------------------------------------------------
BCP Capital, L.P. 27,124
--------------------------------------------------------------------- -------------------------------------------------------
BCP Affiliates Fund LLC 2,006
--------------------------------------------------------------------- -------------------------------------------------------
Broadview BCPSBS 4
--------------------------------------------------------------------- -------------------------------------------------------
Nassau Capital Partners IV, LP 73,273
--------------------------------------------------------------------- -------------------------------------------------------
NAS Partners I, LLC 1,048
--------------------------------------------------------------------- -------------------------------------------------------
Worldview Technology Partners III, LP 126,642
--------------------------------------------------------------------- -------------------------------------------------------
Worldview Technology International III, LP 31,214
--------------------------------------------------------------------- -------------------------------------------------------
Worldview Strategic Partners III, LP 2,799
--------------------------------------------------------------------- -------------------------------------------------------
Worldview III Carrier Fund, LP 6,957
--------------------------------------------------------------------- -------------------------------------------------------
Worldview Technology Partners IV, LP 69,598
--------------------------------------------------------------------- -------------------------------------------------------
Worldview Technology International IV, LP 11,351
--------------------------------------------------------------------- -------------------------------------------------------
Worldview Strategic Partners IV, LP 580
--------------------------------------------------------------------- -------------------------------------------------------
Jerusalem Venture Partners III, LP 163,765
--------------------------------------------------------------------- -------------------------------------------------------
Jerusalem Venture Partners Entrepreneurs Fund, III, LP 12,525
--------------------------------------------------------------------- -------------------------------------------------------
Jerusalem Venture Partners III (Israel) LP 4,653
--------------------------------------------------------------------- -------------------------------------------------------
Jerusalem Venture Partners IV, LP 220,672
--------------------------------------------------------------------- -------------------------------------------------------
Jerusalem Venture Partners IV-A, LP 1,874
--------------------------------------------------------------------- -------------------------------------------------------
Jerusalem Venture Partners Entrepreneurs Fund IV, L.P. 1,979
--------------------------------------------------------------------- -------------------------------------------------------
Jerusalem Venture Partners IV (Israel), LP 5,325
--------------------------------------------------------------------- -------------------------------------------------------
Cisco Systems Capital Corporation 245,294
--------------------------------------------------------------------- -------------------------------------------------------
BNP -Europe Telecom & Media Fund II, LP 291,008
--------------------------------------------------------------------- -------------------------------------------------------
Natio Vie Development 3, FCPR 16,725
--------------------------------------------------------------------- -------------------------------------------------------
Xxxxx Xxxxxx Pacific, L.P. 28,216
--------------------------------------------------------------------- -------------------------------------------------------
Xxxxx Xxxxxx Pacific Friends Fund, LLC 952
--------------------------------------------------------------------- -------------------------------------------------------
Paladin Capital Partners Fund, L.P. 21,630
--------------------------------------------------------------------- -------------------------------------------------------
UFO Communications, Inc 12,265
--------------------------------------------------------------------- -------------------------------------------------------
Global Access Telecommunications, Inc. 18,604
--------------------------------------------------------------------- -------------------------------------------------------
Columbia Ventures Corporation 222,995
--------------------------------------------------------------------- -------------------------------------------------------
Applegreen Capital, Inc 255
--------------------------------------------------------------------- -------------------------------------------------------
Broadmark Capital 758
--------------------------------------------------------------------- -------------------------------------------------------
0000 Xxxx. Xxx. Investments, LLC 424
--------------------------------------------------------------------- -------------------------------------------------------
Worldwide Investments, LLC 424
--------------------------------------------------------------------- -------------------------------------------------------
Karsten Blue 2,067
--------------------------------------------------------------------- -------------------------------------------------------
22
Schedule IV
SETTLEMENT AGREEMENT AND RELEASE
This Settlement Agreement and Release (the "Agreement") is made and
entered into on ______, 200__ by and between Cogent Communications Group, Inc.,
a Delaware corporation (the "Company"), and ________ (the "Investor"), and
inures to the benefit of the above-named parties' current, former and future
parents, subsidiaries, predecessors, successors, joint venturers, related and/or
affiliated persons, trust beneficiaries, directors, officers, stockholders,
attorneys, accountants, insurers, reinsurers, agents, employees and assigns, as
applicable.
RECITALS
WHEREAS, the Investor is subject to certain reporting and restrictive
requirements relating to trading the Company's securities, including Section 16
of the Securities Exchange Act of 1934 (the "Act");
WHEREAS, the Company and the Investor hereby acknowledge that a
certain transaction made by the Investor on _______, 200__ with respect to the
Company's securities (the "Transaction") require the Investor to deliver payment
to the Company the amount of $_______ , which has been agreed upon by the
Company and the Investor (the "Settlement Amount"), pursuant to Section 16(b) of
the Act;
WHEREAS, the Company and the Investor hereby acknowledge the accuracy
of the Settlement Amount; and
WHEREAS, both the Company and the Investor wish to resolve any past
or current disputes and claims between them arising from or related to Section
16(b) of the Act and related securities trading policies of the Company as of
the date hereof.
NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:
1. The Recitals and identification of the parties to, and
beneficiaries of, this Agreement are incorporated by reference as though fully
set forth herein;
2. The Investor agrees to deliver to the Company in accordance with
the terms hereof, the full dollar amount of the Settlement Amount no later than
five (5) business days after entering into this Agreement (the "Payment Date").
Notwithstanding the foregoing, if the Investor fails to deliver the Settlement
Amount on the Payment Date, the Investor hereby agrees that such Settlement
Amount shall accrue interest at a rate of eight percent (8%) from the Payment
Date until paid in full;
3. The Company for itself and its current, former and future parents,
subsidiaries, predecessors, successors, joint venturers, related and/or
affiliated persons, trust beneficiaries, directors, officers, stockholders,
attorneys, accountants, insurers, reinsurers, agents, employees and assigns
(whether express, by implication, or by operation of law) and the Investor,
fully and forever release and discharge each other with respect to any and all
claims, liabilities, causes of action that either party had or now has, either
directly or indirectly, relating to Section 16(b) of the Act or any policies of
the Company relating to trading in the Company's securities;
4. The parties acknowledge and agree that if any provision of this
Agreement is found to be unenforceable, it will not affect the enforceability of
the remaining provisions and the courts may enforce all remaining provisions to
the full extent permitted by law;
23
5. This Agreement contains the entire agreement of the parties and
supersedes any prior agreements on the subject matter thereof. The parties
further acknowledge and agree that parole evidence shall not be required to
interpret the intent of the parties;
6. The parties acknowledge that each has read and understands this
Agreement and that each is signing this Agreement voluntarily, without coercion,
and based upon his or its own judgment, and not in reliance upon any
representations or promises made by the other party, other than those contained
within this Agreement;
7. Each party represents and warrants that, as of the date of the
execution of this Agreement, he or it has the sole right and authority to
execute this Agreement, and that such party has not sold, assigned, transferred,
conveyed or otherwise disposed of any claims or demands relating to any right
surrendered by virtue of this Agreement. Each party further represents and
warrants that he or it has had the opportunity to consult with, and has
consulted, legal counsel in connection with the negotiation and execution of
this Agreement. Each party and its signatory represents that the signatory is
either a party or a business representative or assignee of, and is fully
authorized to execute this Agreement on behalf of, the party for whom he or she
signs; and
8. This Agreement may be signed in counterparts, and said
counterparts shall be treated as though signed as one document.
[Signature page to follow]
24
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be signed on the date hereof.
COGENT COMMUNICATIONS GROUP, INC.
_________________________________
By:
Title:
[INVESTOR]
_________________________________
By:
Title:
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