def14a
SCHEDULE 14A INFORMATION
Proxy Statement
Pursuant to Section 14(a) of the Securities Exchange Act of 1934
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Filed by the Registrant
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Filed by a Party other than the Registrant
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Check the appropriate box:
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Preliminary Proxy Statement |
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Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) |
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Definitive Proxy Statement |
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Definitive Additional Materials |
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Soliciting Material Pursuant to § 240.14a-12 |
iPass Inc.
(Name of Registrant as Specified In Its Charter)
(Name of Person(s) Filing Proxy Statement if Other Than the Registrant)
Payment of Filing Fee (Check the appropriate box)
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No fee required. |
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Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. |
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Title of each class of securities to which transaction applies: |
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Aggregate number of securities to which transaction applies: |
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Per unit price or other underlying value of transaction computed pursuant to Exchange Act
Rule 0-11 (Set forth the amount on which the filing fee is calculated and state how it was
determined): |
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Proposed maximum aggregate value of transaction: |
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Fee paid previously with preliminary materials. |
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Check box if any part of the fee is offset as provided by Exchange
Act Rule 0-11(a)(2) and identify the filing for which the
offsetting fee was paid previously. Identify the previous filing
by registration statement number, or the Form or Schedule and the
date of its filing. |
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(1)
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Amount Previously Paid: |
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Form, Schedule or Registration Statement No.: |
3800 Bridge Parkway
Redwood Shores, California 94065
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
To Be Held On June 3, 2005
Dear Stockholder:
You are cordially invited to attend the Annual Meeting of
Stockholders of iPass Inc., a Delaware corporation. The meeting
will be held on Friday, June 3, 2005, at 9:00 a.m.,
local time, at the Hotel Sofitel, located at 223 Twin Dolphin
Drive, Redwood Shores, CA 94065 for the following purposes:
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1. To elect two directors to hold office until the
2008 Annual Meeting of Stockholders. |
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2. To ratify the selection by the Audit Committee of
the Board of Directors of KPMG LLP as the independent registered
public accounting firm of iPass for its fiscal year ending
December 31, 2005. |
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3. To conduct any other business properly brought
before the meeting. |
These items of business are more fully described in the Proxy
Statement accompanying this Notice.
The record date for the Annual Meeting is April 15, 2005.
Only stockholders of record at the close of business on that
date may vote at the meeting or any adjournment thereof.
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By Order of the Board of Directors |
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Bruce K. Posey |
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Vice President, General Counsel and |
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Secretary |
Redwood Shores, California
April 27, 2005
You are cordially invited to attend the meeting in person.
Whether or not you expect to attend the meeting, please
complete, date, sign and return the enclosed proxy as promptly
as possible in order to ensure your representation at the
meeting. A return envelope (which is postage prepaid if mailed
in the United States) is enclosed for your convenience. Even if
you have voted by proxy, you may still vote in person if you
attend the meeting. Please note, however, that if your shares
are held of record by a broker, bank or other nominee and you
wish to vote at the meeting, you must obtain a proxy issued in
your name from that record holder.
TABLE OF CONTENTS
3800 Bridge Parkway
Redwood Shores, California 94065
PROXY STATEMENT
FOR THE 2005 ANNUAL MEETING OF STOCKHOLDERS
June 3, 2005
QUESTIONS AND ANSWERS ABOUT THIS PROXY MATERIAL AND VOTING
Why am I receiving these materials?
We sent you this proxy statement and the enclosed proxy card
because the Board of Directors of iPass Inc. is soliciting
your proxy to vote at the 2005 Annual Meeting of Stockholders.
You are invited to attend the annual meeting to vote on the
proposals described in this proxy statement. However, you do not
need to attend the meeting to vote your shares. Instead, you may
simply complete, sign and return the enclosed proxy card, or
follow the instructions below to submit your proxy over the
telephone or the internet.
We intend to mail this proxy statement and accompanying proxy
card on or about April 27, 2005 to all stockholders of
record entitled to vote at the annual meeting.
Who can vote at the annual meeting?
Only stockholders of record at the close of business on
April 15, 2005 will be entitled to vote at the annual
meeting. On this record date, there were 63,024,964 shares
of common stock outstanding and entitled to vote.
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Stockholder of Record: Shares Registered in Your
Name |
If on April 15, 2005, your shares were registered directly
in your name with iPass transfer agent, Computershare
Trust Company, then you are a stockholder of record. As a
stockholder of record, you may vote in person at the meeting or
vote by proxy. Whether or not you plan to attend the meeting, we
urge you to fill out and return the enclosed proxy card to
ensure your vote is counted.
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Beneficial Owner: Shares Registered in the Name of a
Broker or Bank |
If on April 15, 2005, your shares were held in an account
at a brokerage firm, bank, dealer, or other similar
organization, then you are the beneficial owner of shares held
in street name and these proxy materials are being
forwarded to you by that organization. The organization holding
your account is considered the stockholder of record for
purposes of voting at the annual meeting. As a beneficial owner,
you have the right to direct your broker or other agent on how
to vote the shares in your account. You are also invited to
attend the annual meeting. However, since you are not the
stockholder of record, you may not vote your shares in person at
the meeting unless you request and obtain a valid proxy from
your broker or other agent.
What am I voting on?
There are two matters scheduled for a vote:
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Election of two directors to hold office until the 2008 Annual
Meeting of Stockholders; |
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Ratification of KPMG LLP as the independent registered public
accounting firm of iPass for its fiscal year ending
December 31, 2005. |
In addition, you are entitled to vote on any other matters that
are properly brought before the annual meeting.
How do I vote?
You may either vote For all the nominees to the
Board of Directors or you may abstain from voting for any
nominee you specify. For each of the other matters to be voted
on, you may vote For or Against or
abstain from voting. The procedures for voting are fairly simple:
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Stockholder of Record: Shares Registered in Your
Name |
If you are a stockholder of record, you may vote in person at
the annual meeting or vote by proxy using the enclosed proxy
card, vote by proxy over the telephone, or vote by proxy on the
Internet. Whether or not you plan to attend the meeting, we urge
you to vote by proxy to ensure your vote is counted. You may
still attend the meeting and vote in person if you have already
voted by proxy.
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To vote in person, come to the annual meeting and we will give
you a ballot when you arrive. |
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To vote using the proxy card, simply complete, sign and date the
enclosed proxy card and return it promptly in the envelope
provided. If you return your signed proxy card to us before the
annual meeting, we will vote your shares as you direct. |
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To vote over the telephone, dial toll-free 1-866-536-4457 using
a touch-tone phone and follow the recorded instructions. You
will be asked to provide the company number and control number
from the enclosed proxy card. Your vote must be received by
5:30 p.m., Central Standard Time on June 2, 2005 to be
counted. |
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To vote on the Internet, go to www.computershare.com/us/proxy to
complete an electronic proxy card. You will be asked to provide
the company number and control number from the enclosed proxy
card. Your vote must be received by 5:30 p.m., Central
Standard Time on June 2, 2005 to be counted. |
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Beneficial Owner: Shares Registered in the Name of Broker
or Bank |
If you are a beneficial owner of shares registered in the name
of your broker, bank, or other agent, you should have received a
proxy card and voting instructions with these proxy materials
from that organization rather than from iPass. Simply complete
and mail the proxy card to ensure that your vote is counted. To
vote in person at the annual meeting, you must obtain a valid
proxy from your broker, bank, or other agent. Follow the
instructions from your broker or bank included with these proxy
materials, or contact your broker or bank to request a proxy
form.
How many votes do I have?
On each matter to be voted upon, you have one vote for each
share of common stock you own as of April 15, 2005.
What if I return a proxy card but do not make specific
choices?
If you return a signed and dated proxy card without marking any
voting selections, your shares will be voted For the
election of both nominees for director and For the
ratification of KPMG LLP as the independent registered public
accounting firm of iPass for fiscal year ending
December 31, 2005. If any other matter is properly
presented at the meeting, your proxy (one of the individuals
named on your proxy card) will vote your shares using his or her
best judgment.
Who is paying for this proxy solicitation?
We will pay for the entire cost of soliciting proxies. In
addition to these mailed proxy materials, our directors and
employees may also solicit proxies in person, by telephone, or
by other means of communication. Directors and employees will
not be paid any additional compensation for soliciting proxies.
We may also reimburse brokerage firms, banks and other agents
for the cost of forwarding proxy materials to beneficial owners.
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What does it mean if I receive more than one proxy card?
If you receive more than one proxy card, your shares are
registered in more than one name or are registered in different
accounts. Please complete, sign and return each proxy card to
ensure that all of your shares are voted.
Can I change my vote after submitting my proxy?
Yes. You can revoke your proxy at any time before the final vote
at the meeting. You may revoke your proxy in any one of three
ways:
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You may submit another properly completed proxy card with a
later date. |
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You may send a written notice that you are revoking your proxy
to our Corporate Secretary at 3800 Bridge Parkway, Redwood
Shores, CA 94065. |
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You may attend the annual meeting and vote in person. Simply
attending the meeting will not, by itself, revoke your proxy. |
When are stockholder proposals due for next years
annual meeting?
To be considered for inclusion in next years proxy
materials, your proposal must be submitted in writing by
December 26, 2005, to our Corporate Secretary at 3800
Bridge Parkway, Redwood Shores, CA 94065. If you wish to submit
a proposal that is not to be included in next years proxy
materials or nominate a director pursuant to our bylaws, you
must provide specified information to us between
February 3, 2006 and March 5, 2006. If you wish to do
so, please review our Bylaws, which contain a description of the
information required to be submitted as well as additional
requirements about advance notice of stockholder proposals and
director nominations.
How are votes counted?
Votes will be counted by the inspector of election appointed for
the meeting, who will separately count For and (with
respect to proposals other than the election of directors)
Against votes, abstentions and broker non-votes.
Abstentions will be counted towards the vote total for each
proposal, and will have the same effect as Against
votes. Broker non-votes have no effect and will not be counted
towards the vote total for any proposal.
If your shares are held by your broker as your nominee (that is,
in street name), you will need to obtain a proxy
form from the institution that holds your shares and follow the
instructions included on that form regarding how to instruct
your broker to vote your shares. If you do not give instructions
to your broker, your broker can vote your shares with respect to
discretionary items, but not with respect to
non-discretionary items. Discretionary items are
proposals considered routine under the rules of the New York
Stock Exchange on which your broker may vote shares held in
street name in the absence of your voting instructions. On
non-discretionary items for which you do not give your broker
instructions, the shares will be treated as broker non-votes.
How many votes are needed to approve each proposal?
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For Proposal No. 1, the election of directors, the two
nominees receiving the most For votes (among votes
properly cast in person or by proxy) will be elected. Broker
non-votes will have no effect. |
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To be approved, Proposal No. 2 ratifying KPMG LLP as
the independent registered public accounting firm of iPass for
fiscal year ending December 31, 2005 must receive a
For vote from the majority of shares either in
person or by proxy. If you Abstain from voting, it
will have the same effect as an Against vote. Broker
non-votes will have no effect. |
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What is the quorum requirement?
A quorum of stockholders is necessary to hold a valid meeting. A
quorum will be present if at least a majority of the outstanding
shares are represented by stockholders present at the meeting or
by proxy. On the record date, there were 63,024,964 outstanding
and entitled to vote. Thus 31,512,483 must be represented by
stockholders present at the meeting or by proxy to have a quorum.
Your shares will be counted towards the quorum only if you
submit a valid proxy vote or vote at the meeting. Abstentions
and broker non-votes will be counted towards the quorum
requirement. If there is no quorum, a majority of the votes
present at the meeting or the Chairman of the meeting may
adjourn the meeting to another date.
How can I find out the results of the voting at the annual
meeting?
Preliminary voting results will be announced at the annual
meeting. Final voting results will be published in our quarterly
report on Form 10-Q for the second quarter of 2005.
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Proposal 1
Election of
Directors
iPass Board of Directors is divided into three classes.
Each class consists, as nearly as possible, of one-third of the
total number of directors, and each class has a three-year term.
Vacancies on the Board of Directors may be filled only by
persons elected by a majority of the remaining directors. A
director elected by the Board of Directors to fill a vacancy in
a class shall serve for the remainder of the full term of that
class, and until the directors successor is elected and
qualified. This includes vacancies created by an increase in the
number of directors.
The Board of Directors currently has seven members. There are
two directors in the class whose term of office expires in 2005.
If elected at the annual meeting, each of these nominees would
serve until the 2008 annual meeting and until his successor is
elected and has qualified, or until the directors death,
resignation or removal. It is our policy to encourage directors
to attend the Annual Meeting, and for those purposes to permit
attendance by telephone. All of the nominees for election as a
director at the 2004 Annual Meeting of Stockholders attended the
2004 Annual Meeting of Stockholders.
Nominees for Election
for a Three-Year Term Expiring at the 2008 Annual Meeting of
Stockholders
The following is a brief biography of each nominee for director.
John D. Beletic, age 53, has served as a member of
our board of directors since November 1999. Since July 2002,
Mr. Beletic has served as Executive Chairman of Oculan
Corporation, a network monitoring and intrusion detection
company, and since July 2002 as a venture partner with Oak
Investment Partners, a venture capital firm. In addition,
Mr. Beletic serves on the board of Tessco Technologies, a
wireless technology provider, Aventail, Inc., a virtual private
network service and appliance provider, Fiber Tower, a provider
of microwave transmission services to mobile phone carriers, and
STSN, Inc., a provider of broadband internet access for the
hospitality industry. From August 1994 until December 2001,
Mr. Beletic served as Chief Executive Officer and Chairman
of the Board of Weblink Wireless, Inc., a communications service
company. Mr. Beletic was the Chief Executive Officer and
Chairman of the Board of WebLink when that company filed for
bankruptcy protection in May 2001.
A. Gary Ames, age 60, has served as a member of
our board of directors since July 2002. From July 1995 until his
retirement in June 2000, Mr. Ames served as President and
Chief Executive Officer of MediaOne International, a broadband
and wireless company. Mr. Ames serves on the boards of:
Albertsons Inc., a food and drug retailer, Tektronix, Inc., an
electronic testing and measurement company; and F5 Networks,
Inc., an application traffic management company.
The Board of Directors
Recommends
A Vote in Favor of Each
Named Nominee.
Directors Continuing in
Office until the 2006 Annual Meeting of Stockholders
Kenneth D. Denman, age 46, has served as our
Chairman since January 2003, as a member of our board of
directors since December 2001 and as our President and Chief
Executive Officer since October 2001. From January 2000 to March
2001, Mr. Denman served as President and Chief Executive
Officer of AuraServ Communications, a managed service provider
of broadband voice and data applications that ceased operations
in March 2001. From August 1998 to May 2000, Mr. Denman
served as Senior Vice President, National Markets Group of
MediaOne, Inc., a broadband cable and communications company.
From June 1996 to August 1998, Mr. Denman served as Chief
Operating Officer, Wireless, at MediaOne International, a
broadband and wireless company. Mr. Denman also serves on
the board of Openwave Systems, Inc., a provider of open
standards software products and services for the
telecommunications industry.
Cregg B. Baumbaugh, age 48, has served as a member
of our board of directors since June 2003. From May 1999 to
August 2004, Mr. Baumbaugh served as Executive Vice
President of T-Mobile USA, a provider of broadband and wireless
communications company (formerly VoiceStream Wireless Corp).
From July 1994
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to May 1999, Mr. Baumbaugh served as Senior Vice President
of Corporate Development of VoiceStream Wireless and Western
Wireless Corporation. From November 1989 through May 1999, he
served in various positions with Western Wireless and its
predecessor.
Allan R. Spies, age 56, has served as a member of
our board of directors since December 2002. From 1997 until his
retirement in June 2000, Mr. Spies served as Executive Vice
President and Chief Financial Officer of US West Communications,
a telecommunications company that was acquired by Qwest
Communications International, Inc. in June 2000. Mr. Spies
also serves on the board of InfoNow Corporation, a provider of
enterprise channel management software.
Directors Continuing in
Office until the 2007 Annual Meeting of Stockholders
Peter G. Bodine, age 43, has served as a member of
our board of directors since November 1998. Mr. Bodine has
served as a General partner of APV Technology partners, a
venture capital firm, since 1994 and Executive Vice President of
Asia Pacific Ventures, a venture capital firm, since December
1992. Mr. Bodine also serves on the board of STSN, a
broadband service provider.
Arthur C. Patterson, age 61, has served as a member
of our board of directors since December 1996.
Mr. Patterson is a general partner of Accel Partners, a
venture capital firm that he founded in 1983. Mr. Patterson
also serves as a director of Actuate Corporation, an enterprise
reporting software company.
Independence of the
Board of Directors
As required under the listing standards of the National
Association of Securities Dealers, Inc. (the Nasdaq
listing standards), a majority of the members of a listed
companys Board of Directors must qualify as
independent, as affirmatively determined by the
Board of Directors. The Board of Directors consults with our
legal counsel to ensure that the Boards determinations are
consistent with all relevant securities and other laws and
regulations regarding the definition of independent,
including those set forth in pertinent listing standards of the
NASDAQ, as in effect from time to time.
Consistent with these considerations, after review of all
relevant transactions or relationships between each director, or
any of his or her family members, and iPass, its senior
management and its independent registered public accounting
firm, the Board of Directors affirmatively has determined that
all of our directors are independent directors within the
meaning of the applicable Nasdaq listing standards, except for
Mr. Denman, our President and Chief Executive Officer.
Information Regarding
the Board of Directors and its Committees
In 2004 iPass independent directors met eight times in
regularly scheduled executive sessions at which only independent
directors were present.
Our Board of Directors has an Audit Committee, a Compensation
Committee, and a Nominating Committee. The following table
provides membership information for 2004 for each of the
committees:
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Nominating | |
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Kenneth D. Denman
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A. Gary Ames
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Cregg B. Baumbaugh
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John D. Beletic
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Peter G. Bodine
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Arthur C. Patterson
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Allan R. Spies
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Below is a description of each committee of the Board of
Directors. Each of the committees has authority to engage legal
counsel or other experts or consultants, as it deems appropriate
to carry out its responsibilities. The Board of Directors has
determined that each member of each committee meets the
applicable rules and regulations regarding
independence and that each member is free of any
relationship that would interfere with his or her individual
exercise of independent judgment with regard to iPass.
Audit
Committee
The Audit Committee of the Board of Directors oversees our
corporate accounting and financial reporting process. For this
purpose, the Audit Committee performs several functions. The
Audit Committee: evaluates the performance of and assesses the
qualifications of the independent registered public accounting
firm; determines and approves the engagement of the independent
registered public accounting firm; determines whether to retain
or terminate the existing independent registered public
accounting firm or to appoint and engage new independent
registered public accounting firm; reviews and approves the
retention of the independent registered public accounting firm
to perform any proposed permissible non-audit services; monitors
the rotation of partners of the independent registered public
accounting firm on our audit engagement team as required by law;
confers with management and the independent registered public
accounting firm regarding the effectiveness of internal controls
over financial reporting; establishes procedures, as required
under applicable law, for the receipt, retention and treatment
of complaints received by iPass regarding accounting, internal
accounting controls or auditing matters and the confidential and
anonymous submission by employees of concerns regarding
questionable accounting or auditing matters; and meets to review
the companys annual audited financial statements and
quarterly financial statements with management and the
independent registered public accounting firm, including
reviewing the companys disclosures under
Managements Discussion and Analysis of Financial
Condition and Results of Operations. Three directors
comprise the Audit Committee: Messrs. Ames, Baumbaugh and
Spies. The Audit Committee met seven times during 2004.
The Board of Directors has reviewed the Nasdaq listing standards
definition of independence for Audit Committee members and has
determined that all members of our Audit Committee are
independent (as independence is currently defined in
Rule 4350(d)(2)(A)(i) and (ii) of the Nasdaq listing
standards The Board of Directors has determined that
Mr. Spies qualifies as an audit committee financial
expert, as defined in applicable SEC rules. The Board of
Directors made a qualitative assessment of Mr. Spiess
level of knowledge and experience based on a number of factors,
including his formal education and experience as Chief Financial
Officer of U.S. West Communications, a telecommunications
company that was acquired by Qwest Communications International.
Compensation
Committee
The Compensation Committee of the Board of Directors reviews and
approves the overall compensation strategy and policies for
iPass. The Compensation Committee: reviews and approves
corporate performance goals and objectives relevant to the
compensation of our executive officers and other senior
management; reviews and approves the compensation and other
terms of employment of our Chief Executive Officer; reviews and
approves the compensation and other terms of employment of the
other officers; and administers our stock option and purchase
plans, and other similar plans and programs. We also have a
Stock Option Committee composed of Mr. Denman, our
President and Chief Executive Officer, that may award stock
options to new employees who are not officers. Three directors
comprise the Compensation Committee: Messrs. Beletic,
Bodine and Patterson. All members of our Compensation Committee
are independent (as independence is currently defined in
Rule 4200(a)(15) of the NASDAQ listing standards). The
Compensation Committee met eight times during 2004.
Nominating
Committee
The Nominating Committee of the Board of Directors is
responsible for identifying, reviewing and evaluating candidates
to serve as directors of iPass, reviewing and evaluating
incumbent directors, recommending to the board of directors for
selection, candidates for election to the board of directors,
making
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recommendations to the board of directors regarding the
membership of the committees of the board of directors and
assessing the performance of the board of directors: Our
Nominating Committee Charter is attached to this proxy statement
as Appendix B. Three directors comprise the Nominating
Committee: Messrs. Ames, Beletic and Patterson. All members
of the Nominating Committee are independent (as independence is
currently defined in Rule 4200(a)(15) of the NASDAQ listing
standards). The Nominating Committee met two times during 2004.
The Nominating Committee has not established any stated
specific, minimum qualifications that must be met by a candidate
for a position on our board of directors. The Nominating
Committee will consider all of the relevant qualifications of
Board candidates, including such factors as possessing relevant
expertise upon which to be able to offer advice and guidance to
management, having sufficient time to devote to the affairs of
iPass, demonstrated excellence in his or her field, having the
ability to exercise sound business judgment, having the
commitment to rigorously represent the long-term interests of
our stockholders, and whether the candidates for the board of
directors will be independent for Nasdaq purposes, as well as
the current needs of the board of directors and iPass. In the
case of incumbent directors whose terms of office are set to
expire, the Nominating Committee will also review such
directors overall service to iPass during their term, and
any relationships and transactions that might impair such
directors independence. The Nominating Committee will
conduct any appropriate and necessary inquiries into the
backgrounds and qualifications of possible candidates after
considering the function and needs of the board of directors. To
date, the Nominating Committee has not paid a fee to any third
party to assist in the process of identifying or evaluating
director candidates. To date, the Nominating Committee has not
received a recommendation for a director nominee from a
stockholder or stockholders holding more than 5% of our voting
stock.
The Nominating Committee will consider director candidates
recommended by stockholders. The Nominating Committee does not
intend to alter the manner in which it evaluates candidates
based on whether the candidate was recommended by a stockholder
or not. Stockholders who wish to recommend individuals for
consideration by the Nominating Committee to become nominees for
election to the board of directors may do so by delivering a
written recommendation to the Nominating Committee at the
following address: 3800 Bridge Parkway, Redwood Shores,
California 94065. Submissions must include the full name of the
proposed nominee, a description of the proposed nominees
business experience for at least the previous five years,
complete biographical information, a description of the proposed
nominees qualifications as a director and a representation
that the nominating stockholder is a beneficial or record owner
of our common stock. Any such submission must be accompanied by
the written consent of the proposed nominee to be named as a
nominee and to serve as a director if elected.
Meetings of the Board
of Directors
The board of directors met eight times during the last fiscal
year. All directors attended at least 75% of the aggregate of
the meetings of the board of directors and of the committees on
which he served, held during the period for which he was a
director or committee member, respectively.
Stockholder
Communications with the Board of Directors
Our board of directors has adopted a formal process by which
stockholders may communicate with the board of directors or any
of our directors. Stockholders who wish to communicate with the
board of directors may do so by sending written communications
addressed to the Secretary of iPass at 3800 Bridge Parkway,
Redwood Shores, California 94065. All communications will be
forwarded by the Secretary of iPass to the board of directors or
the individual Directors, as designated. All communications
directed to the Audit Committee in accordance with our policy
regarding accounting matters complaint procedures that relate to
questionable accounting or auditing matters involving iPass will
be promptly and directly forwarded to the Audit Committee.
8
Code of
Ethics
We have adopted a code of conduct and ethics that applies to all
of our employees, including the principal executive officer,
principal financial officer and principal accounting officer.
This code of conduct and ethics is posted on our Website. The
Internet address for our Website is http://www.ipass.com,
and the code of conduct and ethics may be found as follows:
|
|
|
1. From our main Web page, first click on
Investors. |
|
|
2. Next, click on Corporate Governance. |
|
|
3. Then, click on Code of Conduct. |
|
|
4. Finally, click on Code of Conduct and Ethics. |
We intend to satisfy the disclosure requirement under
Item 5.05 of Form 8-K regarding amendments to,
or waivers from, a provision of this code of conduct and ethics
by posting such information on our website, at the address and
location noted above.
9
Report of the Audit
Committee of the Board of Directors(1)
The Audit Committee of the Board of Directors for the fiscal
year ended December 31, 2004 consisted of three members:
Messrs. Ames, Baumbaugh and Spies. All members of
iPass Audit Committee are independent (as independence is
defined in Rules 4200(a)(15) and 4350(d) of the NASDAQ
listing standards).
The Audit Committee oversees iPass financial reporting
process on behalf of the Board of Directors. Management has
primary responsibility for the financial statements and the
reporting process including the systems of internal controls and
disclosure controls and procedures. In fulfilling its oversight
responsibilities, the Audit Committee reviewed the audited
financial statements in iPass Annual Report with
management, including a discussion of the quality, not just the
acceptability, of the accounting principles, the reasonableness
of significant judgments and the clarity of disclosures in the
financial statements.
The Audit Committee is responsible for reviewing, approving and
managing the engagement of the independent registered public
accounting firm, including the scope, extent and procedures of
the annual audit and compensation to be paid thereto, and all
other matters the Audit Committee deems appropriate, including
the independent registered public accounting firms
accountability to the board of directors and the Audit
Committee. The Audit Committee reviewed with the independent
registered public accounting firm, who is responsible for
expressing an opinion on the conformity of those audited
financial statements with generally accepted accounting
principles, their judgments as to the quality, not just the
acceptability, of iPass accounting principles and such
other matters as are required to be discussed with the Audit
Committee under generally accepted auditing standards and those
matters required to be discussed by the Statement on Auditing
Standards No. 61. In addition, the Audit Committee has
discussed with the independent registered public accounting firm
the auditors independence from management and iPass,
including the matters in the written disclosures required by the
Independence Standards Board Standard No. 1.
The Audit Committee discussed with iPass independent
registered public accounting firm the overall scope and plans
for its audits. The Audit Committee meets with the independent
registered public accounting firm, with and without management
present, to discuss the results of its examinations, its
evaluation of iPass internal controls and the overall
quality of iPass financial reporting. The Audit Committee
met seven times during 2004.
In reliance on the reviews and discussions referred to above,
the Audit Committee recommended to the Board of Directors, and
the Board of Directors has approved, that the audited financial
statements be included in iPass Annual Report on
Form 10-K for the fiscal year ended December 31, 2004
for filing with the Securities and Exchange Commission. The
Audit Committee has also retained, subject to stockholder
ratification described in Proposal 2, KPMG LLP as
iPass independent registered public accounting firm for
the fiscal year ending December 31, 2005.
|
|
|
AUDIT COMMITTEE |
|
|
Allan R. Spies, Chairman |
|
A. Gary Ames |
|
Cregg B. Baumbaugh |
(1) The material in this report is not soliciting
material, is not deemed filed with the SEC and
is not to be incorporated by reference in any filing of the
Company under the Securities Act or the Exchange Act, whether
made before or after the date hereof and irrespective of any
general incorporation language in any such filing.
10
Proposal 2
Ratification of the
Independent Registered Public Accounting Firm
The Audit Committee of the Board of Directors has selected KPMG
LLP as our independent registered public accounting firm for the
fiscal year ending December 31, 2005 and has further
directed that management submit the selection of the independent
registered public accounting firm for ratification by the
stockholders at the Annual Meeting. KPMG LLP has audited our
financial statements since May 2002. Representatives of KPMG LLP
are expected to be present at the Annual Meeting. They will have
an opportunity to make a statement if they so desire and will be
available to respond to appropriate questions.
Neither our Bylaws nor other governing documents or law require
stockholder ratification of the selection of KPMG LLP as our
independent registered public accounting firm. However, the
Audit Committee is submitting the selection of KPMG LLP to the
stockholders for ratification as a matter of good corporate
practice. If the stockholders fail to ratify the selection, the
Audit Committee will reconsider whether or not to retain that
firm. Even if the selection is ratified, the Audit Committee in
its discretion may direct the appointment of a different
independent registered public accounting firm at any time during
the year if they determine that such a change would be in the
best interests of iPass and its stockholders.
The affirmative vote of the holders of a majority of the shares
present in person or represented by proxy and entitled to vote
at the annual meeting will be required to ratify the selection
of KPMG LLP. Abstentions will be counted toward the tabulation
of votes cast on proposals presented to the stockholders and
will have the same effect as negative votes. Broker non-votes
are counted towards a quorum, but are not counted for any
purpose in determining whether this matter has been approved.
Principal Accountant
Fees and Services
The following table represents aggregate fees billed to iPass
for fiscal years ended December 31, 2004 and
December 31, 2003, by KPMG LLP, our independent registered
public accounting firm.
|
|
|
|
|
|
|
|
|
Fee Category |
|
Fiscal 2004 Fees | |
|
Fiscal 2003 Fees | |
|
|
| |
|
| |
Audit Fees
|
|
$ |
522,500 |
|
|
$ |
837,340 |
|
Audit-Related Fees
|
|
|
|
|
|
|
|
|
Tax Fees
|
|
|
|
|
|
|
|
|
All Other Fees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Fees
|
|
$ |
522,500 |
|
|
$ |
837,340 |
|
|
|
|
|
|
|
|
Audit Fees. Consists of fees billed for professional
services rendered for the audit of iPass consolidated
financial statements and review of the interim consolidated
financial statements included in quarterly reports, review of
the tax provision, comfort letters and consents, and services
that are normally provided by KPMG LLP in connection with
statutory and regulatory filings or engagements. Audit fees for
the year ended December 31, 2003 include fees related to
the filing of our registration statement for our initial public
offering.
All of these services were approved by the Audit Committee prior
to the services being rendered to us.
Pre-Approval Policies
and Procedures
The Audit Committees policy is to pre-approve all audit
and permissible non-audit services provided by the independent
registered public accounting firm. These services may include
audit services, audit-related services, tax services and other
services. Pre-approval is generally provided for up to one year
and any pre-approval is detailed as to the particular service or
category of services and is generally subject to a specific
budget. The independent registered public accounting firm and
management are required to periodically report to the Audit
Committee regarding the extent of services provided by the
independent registered public accounting firm in accordance with
this pre-approval, and the fees for the services performed to
date. The Audit Committee may also pre-approve particular
services on a case-by-case basis.
The Board of Directors
Recommends
A Vote in Favor of
Proposal 2.
11
Securities Authorized
For Issuance Under Equity Compensation Plans
Information with respect to securities authorized for issuance
under equity compensation plans as of the end of the most
recently completed fiscal year is aggregated as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of Securities | |
|
|
|
|
|
|
Remaining Available for | |
|
|
|
|
|
|
Future Issuance Under | |
|
|
Number of Securities to | |
|
Weighted-Average | |
|
Equity Compensation | |
|
|
be Issued Upon Exercise | |
|
Exercise Price of | |
|
Plans (Excluding | |
|
|
of Outstanding Options, | |
|
Outstanding Options, | |
|
Securities Reflected in | |
|
|
Warrants and Rights | |
|
Warrants and Rights | |
|
Column(a)) | |
Plan Category |
|
(a) | |
|
(b) | |
|
(c) | |
|
|
| |
|
| |
|
| |
Equity compensation plans approved by stockholders
|
|
|
10,114,986 |
|
|
$ |
4.78 |
|
|
|
7,378,671 |
|
Equity compensation plans not approved by stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
10,114,986 |
|
|
$ |
4.78 |
|
|
|
7,378,671 |
|
|
|
|
|
|
|
|
|
|
|
12
Executive Officers and
Directors
Set forth below is information regarding our executive officers
as of March 31, 2005. Information regarding our directors
is set forth in Proposal 1-Election of
Directors presented earlier in this proxy statement.
|
|
|
|
|
|
|
Name |
|
Age | |
|
Position |
|
|
| |
|
|
Kenneth D. Denman
|
|
|
46 |
|
|
Chairman, President and Chief Executive Officer |
Donald C. McCauley
|
|
|
53 |
|
|
Vice President and Chief Financial Officer |
John C. Charters
|
|
|
42 |
|
|
Chief Operating Officer |
Bruce K. Posey
|
|
|
53 |
|
|
Vice President, General Counsel and Secretary |
Anurag Lal
|
|
|
40 |
|
|
Vice President of Business Development |
John P. Thuma
|
|
|
47 |
|
|
Vice President of Worldwide Sales |
Joel Wachtler
|
|
|
55 |
|
|
Vice President of Marketing and Strategy |
Mr. Denmans biography is set forth in
Proposal 1- Election of Directors presented
earlier in this proxy statement.
Mr. McCauley has served as our Vice President and
Chief Financial Officer since August 1999. From July 1998 to
April 1999, Mr. McCauley served as Senior Vice President
and Chief Financial Officer of Presidium, Inc., a national
insurance services firm. From April 1999 to July 1999,
Mr. McCauley served as Executive Vice President and Chief
Financial Officer of Cambridge Integrated Services Group, Inc.,
a wholly-owned subsidiary of Aon Corporation, a provider of risk
management, retail, reinsurance and wholesale brokerage, claims
management, special services and human capital consulting
services which merged with Presidium in April 1999. From May
1995 to November 1997, Mr. McCauley served as Vice
President and Chief Financial Officer of Verity, Inc., a
provider of enterprise intranet and Internet knowledge retrieval
solutions. Mr. McCauley is a certified public accountant.
Mr. Charters has served as our Chief Operating
Officer since November 2004. From July 2003 to November 2004,
Mr. Charters served as the Chief Executive Officer of the
Charters Group, an independent consulting services company. From
April 2002 until July 2003, Mr. Charters served as the
Chief Executive Officer of Expanets Communications, a majority
owned subsidiary of Northwestern Corporation and a reseller of
voice and data equipment. From December 1999 until February
2002, Mr. Charters served as a Founder and Chief Executive
Officer of Qwest CyberSolutions, a joint venture formed by Qwest
Communications and KPMG Consulting and a provider of complex
business applications hosting and management services
nationwide. In September 2003, Northwestern Corporation
voluntarily filed for bankruptcy.
Mr. Posey has served as our Vice President, General
Counsel and Secretary since July 2002. From August 2000 to March
2001, Mr. Posey served as General Counsel and Corporate
Secretary for AuraServ Communications, Inc., a managed service
provider of broadband voice and data applications that ceased
operations in March 2001. From February 1997 to July 2000,
Mr. Posey served as Senior Vice President
Federal Relations and Regulatory Law for US West Communications,
a telecommunications company. From September 1994 to February
1997, Mr. Posey served as Vice President, Public Policy and
External Affairs for MediaOne, Inc., a broadband cable and
communications company.
Mr. Lal has served as our Vice President of Business
Development since October 1999. From June 1999 to October 1999,
Mr. Lal served as Vice President of Internet &
Multimedia Services of BT Worldwide, the international division
of British Telecommunications plc., a United Kingdom based
telecommunications provider. Prior to his work at BT Worldwide,
Mr. Lal served as Director of Custom Network Solutions and
then as Vice President of Data and Internet Product
Management & Marketing of e.spire Communications, Inc.,
a communications services provider, from May 1996 to May 1999.
Mr. Thuma has served as our Vice President of
Worldwide Sales since February 2003 and of North American Sales
since July 2000. From May 1999 to July 2000, Mr. Thuma
served as a regional Vice President
13
of UUNET, Inc., a provider of Internet communication solutions.
From May 1996 to April 1999, Mr. Thuma served as a sales
director of Compuserve Network Services, an Internet access
service provider.
Mr. Wachtler has served as our Vice President of
Marketing and Strategy since November 2004. From September 2003
to November 2004, Mr. Wachtler served as our Vice President
of Product Management and Strategy. From May 2000 to July 2003,
Mr. Wachtler served as Vice President of Strategy and
Development at Cable Partners, a cable company. From November
1999 to May 2000, Mr. Wachtler served as an associate with
Telcom, a consulting company. From 1996 to 1999,
Mr. Wachtler served in various positions, most recently, as
Vice President of Strategy of MediaOne International (formerly
US West International), a broadband and wireless company.
Security Ownership of
Certain Beneficial Owners and Management
The following table sets forth certain information regarding the
ownership of our common stock as of March 31, 2005 by:
(i) each director and nominee for director; (ii) each
of the executive officers named in the Summary Compensation
Table presented later in this proxy statement; (iii) all
executive officers and directors of iPass as a group; and
(iv) all those known by us to be beneficial owners of more
than five percent of our common stock. Unless otherwise
provided, the address for each of the beneficial owners listed
is c/o iPass Inc., 3800 Bridge Parkway, Redwood
Shores, California 94065. All percentages in this table are
based on a total of 63,011,257 shares of common stock
outstanding on March 31, 2005.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares Issuable | |
|
Beneficially Owned | |
|
|
Pursuant to | |
|
(Including the Number | |
|
|
Options | |
|
of Shares Shown in the | |
|
|
Exercisable Within | |
|
First Column) | |
|
|
60 Days of | |
|
| |
Name and Address of Beneficial Owner |
|
March 31, 2005 | |
|
Shares | |
|
Percent | |
|
|
| |
|
| |
|
| |
Kenneth D. Denman(1)
|
|
|
|
|
|
|
2,600,300 |
|
|
|
4.1 |
% |
John P. Thuma(2)
|
|
|
320,000 |
|
|
|
618,929 |
|
|
|
1.0 |
|
Bruce K. Posey
|
|
|
19,638 |
|
|
|
174,791 |
|
|
|
* |
|
Joel Wachtler
|
|
|
81,633 |
|
|
|
81,633 |
|
|
|
* |
|
Donald C. McCauley
|
|
|
156,250 |
|
|
|
482,250 |
|
|
|
* |
|
Arthur C. Patterson(3)
|
|
|
120,000 |
|
|
|
2,469,208 |
|
|
|
3.9 |
|
Accel Partners(4)
|
|
|
|
|
|
|
1,986,385 |
|
|
|
3.2 |
|
Peter G. Bodine(5)
|
|
|
120,000 |
|
|
|
3,523,402 |
|
|
|
5.6 |
|
APV Technology Partners(6)
|
|
|
|
|
|
|
3,370,902 |
|
|
|
5.3 |
|
A. Gary Ames
|
|
|
120,000 |
|
|
|
140,000 |
|
|
|
* |
|
John D. Beletic(7)
|
|
|
23,000 |
|
|
|
122,963 |
|
|
|
* |
|
Cregg B. Baumbaugh(8)
|
|
|
120,000 |
|
|
|
135,000 |
|
|
|
* |
|
Allan R. Spies
|
|
|
120,000 |
|
|
|
120,000 |
|
|
|
* |
|
Royce & Associates LLC(9)
|
|
|
|
|
|
|
4,872,300 |
|
|
|
7.7 |
|
Brown Advisory Holdings, Inc.(10)
|
|
|
|
|
|
|
4,014,538 |
|
|
|
6.4 |
|
All directors and executive officers as a group (13 persons)
|
|
|
1,547,396 |
|
|
|
10,947,351 |
|
|
|
17.0 |
% |
|
|
|
|
* |
Less than one percent (1%). |
|
|
|
|
(1) |
All of these shares are held by the Kenneth D. Denman Revocable
Trust. |
|
|
(2) |
Includes 297,500 shares held by John P. Thuma and Kristina
M. Thuma, trustees under the Thuma Living Trust dated 10/13/03. |
|
|
(3) |
Mr. Patterson is a partner at Accel Partners. Accel
Partners owns 2,309,491 shares, of which Accel V L.P. owns
1,672,804 shares, Accel Internet/ Strategic Technology
Fund L.P. owns 196,900 shares, Accel Investors
96 L.P. owns 87,511 shares and Accel Keiretsu V L.P.
owns 29,170 shares. Accel V Associates L.L.C. is the
General Partner of Accel V L.P. and has the sole voting and
investment power. |
14
|
|
|
|
|
Arthur C. Patterson, ACP Family Partnership L.P., James R.
Swartz, James W. Breyer, Eugene D. Hill, Homestake Partnership
L.P., Luke B. Evnin and J. Peter Wagner are the Managing Members
of Accel V Associates L.P. and share such power. Accel Internet/
Strategic Technology Fund Associates L.L.C. is the General
Partner of Accel Internet/ Strategic Technology Fund L.P.
and has the sole voting and investment power.
Mr. Patterson, ACP Family Partnership L.P., James R.
Swartz, James W. Breyer, Eugene D. Hill, Homestake Partners
L.P., Luke B. Evnin and J. Peter Wagner are the Managing Members
of Accel Internet/ Strategic Technology Fund L.P. and share
such power. Accel Keiretsu V Associates L.L.C. is the General
Partner of Accel Keiretsu V L.P. and has the sole voting and
investment power. Mr. Patterson, James R. Swartz, James W.
Breyer, Eugene D. Hill, Luke B. Evnin and J. Peter Wagner are
the Managing Members of Accel Keiretsu V Associates L.L.C. and
share such powers. Mr. Patterson, James R. Swartz, James W.
Breyer, Luke B. Evnin, Eugene D. Hill and J. Peter Wagner are
the General Partners of Accel Investors 96 L.P. and share
the voting and investment powers. Ellmore C. Patterson Partners
owns 160,439 shares and the ACP Family Partnership owns
162,667 shares. Mr. Patterson is the sole General
Partner of Ellmore C. Patterson Partners and the ACP Family
Partnership, and has sole voting and investment power.
Mr. Patterson disclaims beneficial ownership of these
shares except to the extent of his pecuniary interest therein.
The address for Mr. Patterson is c/o Accel Partners. |
|
|
(4) |
See footnote (3). The address for Accel Partners is 428
University Ave., Palo Alto, CA 94301. |
|
|
(5) |
Mr. Bodine is a Managing Member of APV Technology Partners.
APV Technology Partners beneficially owns all
3,370,902 shares, of which APV Technology Partners, L.P.
owns 948,372 shares, APV Technology Partners II,
L.P. owns 2,128,401 shares, APV Technology Partners U.S.,
L.P. owns 237,096 shares, and WPS, L.L.C. owns
57,033 shares. Mr. Bodine has shared voting and
investment powers over these shares. Mr. Bodine disclaims
beneficial ownership of these shares except to the extent of his
pecuniary interest therein. The address for Mr. Bodine is
c/o APV Technology Partners. |
|
|
(6) |
See footnote (5). The address for APV Technology Partners is
2370 Watson Court, Suite 200, Palo Alto, CA 94303. |
|
|
(7) |
Includes 99,000 shares held in the name of John and Anne
Partnership, Ltd. |
|
|
(8) |
Includes 15,000 shares held by the Cregg Baumbaugh, Jerilyn
Baumbaugh, trustees of the Baumbaugh Family Revocable Trust dtd
7/30/01. |
|
|
(9) |
The address for Royce & Associates, LLC is 1414 Avenue
of the Americas, New York, NY 10019. The data regarding the
stock ownership of Royce & Associates, LLC is as of
December 31, 2004 from the 13G filed by Royce &
Associates, LLC in January 31, 2005. |
|
|
(10) |
The address of Brown Advisory Holdings Incorporated is 901 South
Bend St., Suite 400, Baltimore, MD 21231. The data
regarding the stock ownership of Brown Advisory Holdings, Inc.
is as of December 31, 2004 from the 13G filed by Brown
Advisory Holdings, Inc. on February 15, 2005. |
Section 16(a)
Beneficial Ownership Reporting Compliance
Section 16(a) of the Securities Exchange Act of 1934 (the
1934 Act) requires iPass directors and
executive officers, and persons who own more than ten percent of
a registered class of iPass equity securities, to file
with the SEC initial reports of ownership and reports of changes
in ownership of common stock and other equity securities of
iPass. Officers, directors and greater than ten percent
stockholders are required by SEC regulation to furnish iPass
with copies of all Section 16(a) forms they file.
To iPass knowledge, based solely on a review of the copies
of such reports furnished to iPass and written representations
that no other reports were required, during the fiscal year
ended December 31, 2004, all Section 16(a) filing
requirements applicable to its officers, directors and greater
than ten percent beneficial owners were complied with.
15
Compensation of
Directors
The members of our board of directors who are not employees of
iPass are reimbursed for travel, lodging and other reasonable
expenses incurred in attending board or committee meetings. In
addition, our non-employee directors received $750 for each
committee meeting attended. In 2004, members of our board of
directors did not receive cash compensation for attending board
meetings.
In 2005, each member of our board of directors will receive
$1,000 for each committee and board meeting attended. In June
2004, Messrs. Ames, Baumbaugh, Beletic, Bodine, Patterson
and Spies each received an option to
purchase 30,000 shares of our common stock at an
exercise price of $10.44 per share as compensation for
attendance at our board and committee meetings. These options
vest in equal monthly installments over a period of one year
beginning on the third anniversary of the date of grant. Under
our 2003 Non-Employee Directors Plan (which shall be referred to
as the Directors Plan), any new non-employee
director upon joining our board of directors will receive an
option to purchase 120,000 shares of our common stock
and each non-employee director will receive an annual option
grant to purchase 30,000 shares of our common stock
thereafter. Annual Option grants to Non-employee directors who
have not served on our board of directors for the entire period
preceding the annual meeting shall be reduced, pro rata, for
each month this person did not serve on the Board of Directors.
No other options may be granted at any time under the
Directors Plan. The exercise price of options granted
under the Directors Plan is 100% of the fair market value
of the common stock subject to the option on the date of the
option grant. Options granted under the Directors Plan may
not be exercised until vested. The initial option of
120,000 shares vests monthly over four years and the annual
option grant of 30,000 shares vests monthly over one year
beginning on the third anniversary of the date of grant. The
term of options granted under the Directors Plan is
indefinite. In the event of a merger of iPass with or into
another corporation or a consolidation, acquisition of assets or
other change-in-control transaction involving iPass, the vesting
of each option will accelerate and the option will be fully
vested and immediately exercisable.
Compensation of
Executive Officers
The following table shows for the fiscal years ended
December 31, 2004, 2003 and 2002, compensation awarded or
paid to, or earned by, our Chief Executive Officer and our other
four most highly compensated executive officers at
December 31, 2004 (the Named Executive
Officers):
Summary Compensation Table
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Long-Term | |
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Compensation | |
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Awards | |
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Annual Compensation | |
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Securities | |
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Underlying | |
|
All Other | |
Name and Principal Position |
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Year | |
|
Salary | |
|
Bonus | |
|
Options | |
|
Compensation | |
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| |
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|
| |
Kenneth D. Denman,
|
|
|
2004 |
|
|
$ |
250,000 |
|
|
$ |
72,262 |
|
|
|
400,000 |
|
|
$ |
26,597 |
(1) |
|
Chairman, President and Chief
|
|
|
2003 |
|
|
|
250,000 |
|
|
|
86,000 |
|
|
|
|
|
|
|
73,224 |
(2) |
|
Executive Officer
|
|
|
2002 |
|
|
|
250,000 |
|
|
|
25,000 |
|
|
|
|
|
|
|
89,153 |
(3) |
John P. Thuma,
|
|
|
2004 |
|
|
|
250,000 |
|
|
|
50,640 |
|
|
|
75,833 |
|
|
|
450 |
(4) |
|
Vice President of Worldwide Sales
|
|
|
2003 |
|
|
|
250,000 |
|
|
|
90,225 |
|
|
|
|
|
|
|
450 |
(4) |
|
|
|
|
2002 |
|
|
|
250,000 |
|
|
|
97,875 |
|
|
|
|
|
|
|
300 |
(4) |
Joel Wachtler,
|
|
|
2004 |
|
|
|
180,000 |
|
|
|
35,329 |
|
|
|
145,000 |
|
|
|
77,138 |
(5) |
|
Vice President of Marketing and Strategy
|
|
|
2003 |
|
|
|
70,467 |
(6) |
|
|
15,805 |
|
|
|
100,000 |
|
|
|
270 |
(4) |
Bruce K. Posey,
|
|
|
2004 |
|
|
|
196,250 |
|
|
|
42,981 |
|
|
|
49,583 |
|
|
|
23,605 |
(7) |
|
Vice President, General Counsel
|
|
|
2003 |
|
|
|
185,000 |
|
|
|
56,265 |
|
|
|
|
|
|
|
690 |
(4) |
|
and Secretary
|
|
|
2002 |
|
|
|
89,061 |
(8) |
|
|
13,859 |
|
|
|
275,000 |
|
|
|
12,583 |
(9) |
Donald C. McCauley,
|
|
|
2004 |
|
|
|
200,000 |
|
|
|
60,507 |
|
|
|
86,667 |
|
|
|
690 |
(4) |
|
Vice President and Chief
|
|
|
2003 |
|
|
|
200,000 |
|
|
|
70,050 |
|
|
|
|
|
|
|
690 |
(4) |
|
Financial Officer
|
|
|
2002 |
|
|
|
200,000 |
|
|
|
74,438 |
|
|
|
|
|
|
|
690 |
(4) |
16
|
|
(1) |
Of this amount, $18,886 is for the payment of commuting and
living expenses, $7,261 is for a tax gross-up adjustment for
commuting and living expenses, and $450 is for life insurance
premiums paid by us. |
|
(2) |
Of this amount, $45,047 is for the payment of commuting and
living expenses, $27,727 is for a tax gross-up adjustment for
commuting and living expenses, and $450 is for life insurance
premiums paid by us. |
|
(3) |
Of this amount, $64,186 is for the payment of commuting and
living expenses, $24,679 is for a tax gross-up adjustment for
commuting and living expenses and $288 is for life insurance
premiums paid by us. |
|
(4) |
This amount is for life insurance premiums paid by us. |
|
(5) |
Of this amount, $30,000 is a relocation bonus, $45,794 is for
the reimbursement of relocation expenses and $1,344 if for life
insurance premiums paid by us. |
|
(6) |
Mr. Wachtler commenced his employment with us in September
2003. |
|
(7) |
Of this amount, $22,915 is for the reimbursement of relocation
expenses and $690 is for life insurance premiums paid by us. |
|
(8) |
Mr. Posey commenced his employment with us in July 2002. |
|
(9) |
Of this amount, $10,000 is a relocation bonus, $2,209 is for the
reimbursement of relocation expenses and $374 is for life
insurance premiums paid by us. |
Stock Option Grants and Exercises
We grant options to our executive officers under the 2003 Equity
Incentive Plan. As of March 31, 2005, options to purchase a
total of 4,550,823 shares were outstanding under the 2003
Equity Incentive Plan and options to
purchase 9,952,868 shares remained available for grant
under the plan.
The following tables show for the fiscal year ended
December 31, 2004, certain information regarding options
granted to, exercised by, and held at year end by, the Named
Executive Officers:
Option Grants and Stock Appreciation Rights in 2004
The following table sets forth information concerning stock
options granted to our Named Executive Officers during fiscal
2004. These options were granted under our 2003 Equity Incentive
Plan, and provide for vesting of the underlying common stock set
forth below. Options were granted at an exercise price equal to
the closing sale price of the common stock on The Nasdaq
National Market on that date.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent of | |
|
|
|
|
|
Potential Realizable Value | |
|
|
Number of | |
|
Total Options | |
|
|
|
|
|
at Assumed Annual Rate | |
|
|
Securities | |
|
Granted to | |
|
|
|
|
|
of Stock Price Appreciation | |
|
|
Underlying | |
|
Employees | |
|
Exercise | |
|
|
|
for Option Term(2) | |
|
|
Options | |
|
in Fiscal | |
|
Price per | |
|
Expiration | |
|
| |
Name |
|
Granted | |
|
Year(1) | |
|
Share | |
|
Date | |
|
5% ($) | |
|
10% ($) | |
|
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Kenneth D. Denman(3)
|
|
|
400,000 |
|
|
|
8.9 |
% |
|
$ |
5.05 |
|
|
|
8/10/14 |
|
|
$ |
1,270,367 |
|
|
$ |
3,219,360 |
|
John P. Thuma(4)
|
|
|
75,883 |
|
|
|
1.7 |
% |
|
$ |
5.05 |
|
|
|
8/10/14 |
|
|
|
240,839 |
|
|
|
610,334 |
|
Joel Wachtler(5)
|
|
|
40,000 |
|
|
|
0.9 |
% |
|
$ |
10.60 |
|
|
|
5/03/14 |
|
|
|
266,651 |
|
|
|
675,747 |
|
|
|
|
105,000 |
|
|
|
2.3 |
% |
|
$ |
5.05 |
|
|
|
8/10/14 |
|
|
|
333,471 |
|
|
|
845,082 |
|
Bruce K. Posey(6)
|
|
|
49,583 |
|
|
|
1.1 |
% |
|
$ |
5.05 |
|
|
|
8/10/14 |
|
|
|
157,472 |
|
|
|
399,064 |
|
Donald C. McCauley(7)
|
|
|
86,667 |
|
|
|
1.9 |
% |
|
$ |
5.05 |
|
|
|
8/10/14 |
|
|
|
275,247 |
|
|
|
697,531 |
|
|
|
(1) |
Based on a total of options to
purchase 4,497,933 shares granted to all of our
employees in fiscal 2004. |
|
(2) |
Potential realizable values are net of exercise price, but
before deduction of taxes associated with exercise. These
amounts represent certain assumed rates of appreciation only,
based on the Securities and Exchange Commission rules, and do
not represent our estimate of future stock prices. No gain to an
optionee is possible without an increase in stock price, which
will benefit all stockholders commensurately. Actual realizable
values, if any, on stock option exercises are dependent on the
future performance of our common stock, overall market
conditions and the option holders continued employment
through the vesting period. |
17
|
|
(3) |
The stock option grant issued to Mr. Denman vests in 24
equal monthly installments beginning on January 1, 2006. |
|
(4) |
The stock option grant issued to Mr. Thuma vests in 26
equal monthly installments beginning on November 1, 2005. |
|
(5) |
The stock option grant issued to Mr. Wachtler for
40,000 shares vests with 25% of the shares subject to the
grant vesting on April 1, 2005 and the remainder of the
shares subject to the grant vesting in equal monthly
installments over the next 36 months. The stock option
grant issued to Mr. Wachtler for 105,000 shares vests
in 36 equal monthly installments beginning on July 1, 2004. |
|
(6) |
The stock option grant issued to Mr. Posey vests in 17
equal monthly installments beginning on August 1, 2006. |
|
(7) |
The stock option grant issued to Mr. McCauley vests in 26
equal monthly installments beginning on November 1, 2005. |
Aggregated Option/ SAR Exercises for the Year Ended
December 31, 2004 and Stock
Option Values as of December 31, 2004
The following table sets forth for each of the Named Executive
Officers the shares acquired and the value realized on each
exercise of stock options during 2004 and the number and value
of securities underlying unexercised options held by the Named
Executive Officers as of December 31, 2004:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of Securities | |
|
|
|
|
|
|
|
|
Underlying Unexercised | |
|
Value of Unexercised | |
|
|
|
|
|
|
Options at | |
|
In-the-Money Options at | |
|
|
Shares | |
|
|
|
Fiscal Year-End(1) | |
|
Fiscal Year-End(2) | |
|
|
Acquired on | |
|
Value |
|
| |
|
| |
Name |
|
Exercise | |
|
Realized |
|
Exercisable | |
|
Unexercisable | |
|
Exercisable | |
|
Unexercisable | |
|
|
| |
|
|
|
| |
|
| |
|
| |
|
| |
Kenneth D. Denman
|
|
|
|
|
|
$ |
|
|
|
|
|
|
|
|
400,000 |
|
|
$ |
|
|
|
$ |
940,000 |
|
John P. Thuma
|
|
|
|
|
|
|
|
|
|
|
320,000 |
|
|
|
75,833 |
|
|
|
848,000 |
|
|
|
178,208 |
|
Joel Wachtler
|
|
|
|
|
|
|
|
|
|
|
45,832 |
|
|
|
199,168 |
|
|
|
34,268 |
|
|
|
212,482 |
|
Bruce K. Posey
|
|
|
|
|
|
|
|
|
|
|
99,847 |
|
|
|
49,583 |
|
|
|
653,998 |
|
|
|
117,155 |
|
Donald C. McCauley
|
|
|
|
|
|
|
|
|
|
|
175,000 |
|
|
|
86,667 |
|
|
|
1,035,000 |
|
|
|
203,667 |
|
|
|
(1) |
Represents the total number of shares of our common stock
subject to stock options held by the Named Executive Officers as
of December 31, 2004. |
|
(2) |
Based on the fair market value of our common stock as of
December 31, 2004 ($7.40 per share), minus the
exercise price, multiplied by the number of shares underlying
the stock options. |
Employment, Severance and Change of Control Agreements
|
|
|
Kenneth D. Denman Employment Agreement |
Mr. Denman, our Chairman, President and Chief Executive
Officer, accepted employment with us as President and Chief
Executive Officer pursuant to the terms of an offer letter dated
November 13, 2001. The offer letter provides that
Mr. Denman is an at will employee, which means we can
terminate his employment at any time, with or without cause.
This offer letter provides for an annual salary of $250,000, an
annual bonus of up to $100,000 based upon the successful
completion of specified performance objectives, and a stock
option to purchase 2,675,300 shares of our common
stock, as well as other customary benefits and terms. In
February 2005, the Compensation Committee increased
Mr. Denmans potential annual bonus to $150,000. In
August of 2004, Mr. Denman was granted an additional stock
option to purchase 400,000 shares of our common stock.
The shares subject to this option vest in equal monthly
installments over 24 months beginning on January 1,
2006. In addition, if we experience a change in control and
Mr. Denmans employment is terminated without cause,
or if he terminates his employment for good reason, up to
18 months after the change in control, then all of the
unvested stock subject to his initial stock option grants of
2,675,300 shares automatically vests from the date of such
termination. If we terminate Mr. Denmans employment
18
without cause and if he signs a general release of all claims
against us, then Mr. Denman will receive continued payment
of his then base salary for a period of six months after the
termination date, up to one half of his annual target bonus of
$150,000, and an additional six months of vesting of shares
acquired on exercise of his option. In addition, during the
first year of Mr. Denmans employment with us we
reimbursed him for relocation expenses, plus a tax gross up,
under the terms of the agreement.
|
|
|
Executive Officer Employment Agreements |
Each of our other Named Executive Officers has signed offer
letters with us. These offer letters provide that the officer is
an at-will employee. These offer letters provide for salary, an
annual bonus paid quarterly based upon the successful completion
of specified performance objectives and stock options, as well
as other customary benefits and terms. Information for 2004
regarding the compensation earned by our Named Executive
Officers is described in Executive
Compensation Summary Compensation Table above.
|
|
|
Executive Officer Stock Option Grants |
In addition, the initial stock option grants issued to each of
our executive officers prior to our initial public offering in
June 2003 provided that if we experienced a change of control
and such officers employment was terminated without cause,
or if such officer terminated his employment for good reason
during the 12 month period following the change in control,
then the unvested shares would accelerate by 24 months from
the date of the change of control. All stock option grants held
by these executive officers that contain this provision have
fully vested other than the stock options grants issued to
(i) Mr. Denman in December 2001 for a total of
2,675,300 shares of our common stock which fully accelerate
if Mr. Denman is terminated without cause or resigns for
good reason within an 18 month period following a change in
control and (ii) Mr. Posey in July 2002 for a total of
275,000 shares of our common stock.
19
Report of the
Compensation Committee of the Board of Directors
on Executive
Compensation(2)
Compensation Philosophy and Practice
iPass compensation philosophy is based on providing
employees with an equitable compensation package and the
opportunity for outstanding performers to earn competitive
compensation over the long-term through a pay-for-performance
approach. The key objectives of the iPass executive
compensation programs are to attract, motivate and retain
executives who drive iPass success and industry
leadership. The programs are designed to:
|
|
|
|
|
Provide executives with competitive compensation that maintains
a balance between cash and stock compensation and provides a
significant portion of total compensation at risk, tied both to
annual and long-term performance of iPass as well as to the
creation of stockholder value. |
|
|
|
Provide equitable pay based on each executives
contribution relative to the market. |
|
|
|
Encourage executives to manage from the perspective of owners
with an equity stake in iPass. |
Components of Executive Compensation
The compensation program for executives consists of the
following components:
|
|
|
Cash. This includes base salary and any bonus award
earned for the fiscal years performance. iPass cash
compensation policies provide a competitive base salary and
offer bonuses that reward superior performance. Executives have
the opportunity to earn an annual bonus, expressed as a fixed
dollar amount, based on the attainment of specific quarterly
financial, strategic, operational and personal goals critical to
iPass success. The bonus is designed to promote executive
retention by measuring progress on a quarterly basis, with the
potential to exceed target award levels payable at the end of
each period for exceeding objectives. For executives and other
senior leaders, total compensation at risk increases with
responsibility. |
|
|
Stock-based Incentives. Employees, including executives,
have historically been eligible for stock option grants, and
stock option grants were awarded during fiscal year 2004.
iPass stock option program was designed to promote
excellent performance over an employees career through
compensation that increases with iPass long-term
performance. In addition, as part of its review of its equity
compensation program, iPass issued stock awards to certain
executives and senior level personnel during fiscal year 2004.
The size of stock option grants was based on various factors
relating to the responsibilities of the individual officers and
their expected future contributions. |
How Executive Pay is Determined
To ensure alignment of executive compensation with iPass
business strategy and objectives, iPass retains a compensation
consultant to conduct an evaluation of its executive
compensation practices. Evaluations are performed every two
years and consist of a review of compensation practices at a
targeted peer group of public companies in the Internet Software
industry, supplemented with data collected from published
compensation surveys reflective of companies that are similar in
size and industry to iPass. This market composite is used to
evaluate the competitiveness of total compensation provided to
iPass top executive positions. In designing and
administering its executive compensation programs, iPass
attempts to target the 50th percentile for comparable
organizations.
2 The material in this report is not soliciting
material, is not deemed filed with the SEC,
and is not to be incorporated by reference into any filing of
iPass under the 1933 Act or 1934 Act, whether made
before or after the date hereof and irrespective of any general
incorporation language contained in such filing.
20
How iPass Use of Stock-Based Awards is Determined
As described above, during fiscal year 2004, iPass
compensation and retention strategy included the use of stock
options. The level of this usage was determined based on
geographic-specific market data to determine the desired mix of
cash and equity pay. Each year, the Compensation Committee
determines the appropriate usage of stock options based on scope
of role and pay relativity balanced against the projected needs
of the business as well as financial considerations, including
the projected impact on stockholder dilution.
Compensation for the Chairman and Chief Executive Officer
The Compensation Committee annually reviews the compensation of
Kenneth D. Denman, Chairman, President and Chief Executive
Officer, under the guidelines outlined above for determining
executive pay. The compensation of Mr. Denman reflects his
status as a significant stockholder of iPass. Mr. Denman is
eligible for a 2005 annual target bonus of $150,000 expressed as
a fixed dollar amount based on the attainment of specific
strategic, operational and revenue and operating income-oriented
financial goals for the Company, which are reviewed by the
Compensation Committee. For the year ended December 31,
2004, Mr. Denmans base salary of $250,000, potential
annual bonus of $100,000 and annual bonus paid of $72,262 were
determined by the Compensation Committee based on its assessment
of Mr. Denmans achievement of the goals previously
mentioned. As the senior leader of iPass, he is focused on
building long-term success, and his interests are aligned with
the stockholders of iPass.
2005 Management Bonus Plan
On February 11, 2005, the Compensation Committee approved
the terms of a 2005 Management Bonus Structure (the Bonus
Plan). The purpose of the Bonus Plan is to attract,
motivate and retain the iPass executive officers and
reward them for assisting the Company in achieving its
operational goals through exemplary performance.
Under the Bonus Plan, cash bonuses, if any, will be based on
both the achievement of specified individual and corporate goals
as well as a review of personal performance, which will be
determined at the discretion of the Compensation Committee.
Bonus amounts will be determined as follows:
|
|
|
|
|
The target bonus amount for each executive officer has been
determined by the Compensation Committee. |
|
|
|
A bonus may range from 50% to 150% of the target bonus amount
for each executive officer. |
|
|
|
The percentage of the target bonus amount paid to the
Companys chief executive officer will be based on the
Companys financial incentive goals set forth in the Bonus
Plan. |
|
|
|
The percentage of the target bonus amount paid to each of the
other executive officers of the Company will be weighted such
that 80% of the bonus will be based on meeting the
Companys financial incentive goals and 20% will be based
on meeting individual performance objectives. |
|
|
|
The financial performance goal of each executive officer will be
based on the Companys revenue, earnings per share and
contract minimum commitments for 2005. |
|
|
|
Performance of each executive officer will be examined and bonus
payments will be made on a quarterly basis. |
Tax Deductibility under Section 162(m)
As noted above, iPass compensation policy is primarily
based upon the practice of pay-for-performance.
Section 162(m) of the Internal Revenue Code imposes a
limitation on the deductibility of nonperformance-based
compensation in excess of $1 million paid to Named
Executive Officers. The Committee currently believes that iPass
should be able to continue to manage its executive compensation
program for Named
21
Executive Officers so as to preserve the related federal income
tax deductions, although individual exceptions may occur.
|
|
|
COMPENSATION COMMITTEE |
|
|
John D. Beletic, Chairman |
|
Peter G. Bodine |
|
Arthur C. Patterson |
22
Compensation Committee
Interlocks and Insider Participation
As previous noted, our compensation committee consists of
Messrs. Beletic, Bodine and Patterson. None of our
executive officers serve as a member of the board of directors
or compensation committee of any entity that has one or more
executive officers who serve on our board of directors or
compensation committee.
Performance Measurement
Comparison1
The following graph shows the total stockholder return of an
investment of $100 in cash as of July 24, 2003, the date of
our initial public offering for (i) our common stock,
(ii) the NASDAQ Composite Index and (iii) the Russell
2000 Index. All values assume reinvestment of the full amount of
all dividends and are calculated as of December 31:
Comparison of Cumulative Total Return
Among iPass Inc.,
Nasdaq Market Index and Russell 2000 Index
ASSUMES $100 INVESTED ON JULY 24, 2003
ASSUMES DIVIDEND REINVESTED
FISCAL YEAR ENDING DEC. 31, 2004
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
|
|
|
|
7/24/03 |
|
|
9/30/03 |
|
|
12/31/03 |
|
|
3/31/04 |
|
|
6/30/04 |
|
|
9/30/04 |
|
12/31/04 |
|
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
|
iPass Inc.
|
|
|
|
100.00 |
|
|
|
|
125.87 |
|
|
|
|
85.75 |
|
|
|
|
58.54 |
|
|
|
|
56.72 |
|
|
|
|
32.08 |
|
|
|
39.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Russell 2000 Index
|
|
|
|
100.00 |
|
|
|
|
102.45 |
|
|
|
|
116.99 |
|
|
|
|
124.01 |
|
|
|
|
124.79 |
|
|
|
|
120.87 |
|
|
|
137.46 |
|
|
|
|
|
|
|
|
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Nasdaq Market Index
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100.00 |
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103.26 |
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115.67 |
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115.43 |
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118.83 |
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110.28 |
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126.78 |
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We do not believe that there are any published industry or line
of business indices that are directly relevant to our line of
business. In addition, we do not believe that we can construct a
peer group index as many of the services similar to ours
comprise a small portion of the business of the companies
providing the services. Consequently, in addition to the NASDAQ
Composite Index, we are comparing our stock price
1 This
Section is not soliciting material, is not deemed
filed with the SEC and is not to be incorporated by
reference in any filing of iPass under the 1933 Act or the
1934 Act whether made before or after the date hereof and
irrespective of any general incorporation language in any such
filing.
23
performance to the Russell 2000 Index as it is an index of
businesses with an average market capitalization similar to ours.
Certain Relationships
and Related Transactions
Director and Officer Indemnification
We have entered into indemnity agreements with certain
employees, officers and directors that provide, among other
things, that we will indemnify such employee, officer or
director, under the circumstances and to the extent provided for
therein, for expenses, damages, judgments, fines and settlements
he or she may be required to pay in actions or proceedings which
he or she is or may be made a party by reason of his or her
position as an employee, officer, director or other agent of
iPass, and otherwise to the full extent permitted under Delaware
law and our Bylaws.
Loans to Officers
We received full recourse promissory notes in exchange for loans
used to exercise stock options from the following executive
officers:
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Largest Amount | |
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Outstanding | |
Officer |
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Date | |
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Principal Amount | |
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During 2004 | |
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Kenneth D. Denman
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February 5, 2002 |
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$ |
1,235,175 |
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$ |
1,431,237 |
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Kenneth D. Denman
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February 5, 2002 |
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99,800 |
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115,642 |
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John P. Thuma
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February 5, 2002 |
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99,800 |
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117,745 |
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John P. Thuma
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February 5, 2002 |
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49,900 |
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58,873 |
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Anurag Lal
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December 1, 2001 |
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187,885 |
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221,381 |
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Anurag Lal
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December 1, 2001 |
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113,524 |
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133,762 |
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Donald C. McCauley
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December 1, 2001 |
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459,371 |
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541,266 |
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Roy D. Albert
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December 1, 2001 |
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229,651 |
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267,314 |
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Each of the notes had an interest rate of 7.0%, with the
outstanding principal and interest due on July 23, 2004.
The outstanding principal and all accrued interest related to
these notes was paid in full prior to their due date in 2004.
24
Householding of Proxy
Materials
The SEC has adopted rules that permit companies and
intermediaries (e.g., brokers) to satisfy the delivery
requirements for proxy statements and annual reports with
respect to two or more stockholders sharing the same address by
delivering a single proxy statement addressed to those
share/stockholders. This process, which is commonly referred to
as householding, potentially means extra convenience
for stockholders and cost savings for companies.
This year, a number of brokers with account holders who are
iPass Inc. stockholders will be householding our
proxy materials. A single proxy statement will be delivered to
multiple stockholders sharing an address unless contrary
instructions have been received from the affected stockholders.
Once you have received notice from your broker that they will be
householding communications to your address,
householding will continue until you are notified
otherwise or until you revoke your consent. If, at any time, you
no longer wish to participate in householding and
would prefer to receive a separate proxy statement and annual
report, please notify your broker, direct your written request
to iPass Inc., attention Corporate Secretary, 3800 Bridge
Parkway, Redwood Shores, California 94065 or contact Investor
Relations at 650-232-4100. Stockholders who currently receive
multiple copies of the proxy statement at their address and
would like to request householding of their
communications should contact their broker. In addition, iPass
will promptly deliver, upon written or oral request to the
address or telephone number above, a separate copy of the annual
report and proxy statement to a stockholder at a shared address
to which a single copy of the documents were delivered.
25
Other Matters
The Board of Directors knows of no other matters that will be
presented for consideration at the Annual Meeting. If any other
matters are properly brought before the meeting, it is the
intention of the persons named in the accompanying proxy to vote
on such matters in accordance with their best judgment.
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By Order of the Board of Directors |
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Bruce K. Posey |
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Vice President, General Counsel and Secretary |
April 27, 2005
A copy of our Annual Report to the Securities and Exchange
Commission on Form 10-K for the fiscal year ended
December 31, 2004 is available without charge upon written
request to: Corporate Secretary, iPass Inc., 3800 Bridge
Parkway, Redwood Shores, California 94065. Alternatively, our
Form 10-K is also available free of charge on our website
at www.ipass.com.
26
IPASS INC.
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Mark this box with an X if you have made |
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changes to your name or address details above. |
Annual Meeting Proxy Card
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A Election of Directors
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PLEASE REFER TO THE REVERSE SIDE FOR INTERNET AND TELEPHONE VOTING INSTRUCTIONS. |
1. The Board of Directors recommends a vote FOR the listed nominees.
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For |
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Withhold |
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01 01 John D. Beletic
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02 02 A. Gary Ames
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B Issues
The Board of Directors recommends a vote FOR the following proposal.
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For |
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Against |
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Abstain |
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2. Ratification of the selection of KPMG LLP as iPass Inc.s independent registered public
accounting firm for the fiscal year ending December 31, 2005.
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3. In their discretion, the proxy holders are authorized to vote upon such other business as may
properly come before the meeting or any adjournments or postponements thereof to the extent
authorized by Rule 14a-4(c) promulgated under the Securities Exchange Act of 1934, as amended. |
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WHETHER OR NOT YOU PLAN TO ATTEND THE MEETING IN PERSON, YOU ARE URGED TO COMPLETE, DATE, SIGN AND
PROMPTLY MAIL THIS PROXY IN THE ENCLOSED RETURN ENVELOPE SO THAT YOUR SHARES MAY BE REPRESENTED AT
THE MEETING.
THIS PROXY WILL BE VOTED AS DIRECTED ABOVE. WHEN NO CHOICE IS INDICATED, THIS PROXY WILL BE VOTED
FOR THE ELECTION OF ALL NOMINEES
C Authorized Signatures Sign Here This section must be completed for your instructions to be executed.
NOTE: Please sign exactly as your name(s) appear(s) on your stock certificate. If shares of
stock stand of record in the names of two or more persons or in the name of husband and wife,
whether as joint tenants or otherwise, both or all of these persons should sign the proxy. If
shares of stock are held of record by a corporation, the proxy should be executed by the president
or vice president and the secretary or assistant secretary. Executors, administrators or other
fiduciaries who execute the above proxy for a deceased stockholder should give their full title.
Please date the proxy.
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Signature 1 Please keep signature within the box
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Signature 2 Please keep signature within the box
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Date (mm/dd/yyyy) |
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Proxy iPASS INC.
ANNUAL MEETING OF STOCKHOLDERS
This proxy is solicited on behalf of the board of directors of iPass Inc.
The undersigned hereby appoints Kenneth D. Denman and Donald C. McCauley, and each of them, as
proxies, each with full power of substitution and resubstitution, and hereby authorizes them to
represent and to vote, as designated on the reverse side, all shares of common stock, $0.001 par
value per share, of iPass Inc., held of record by the undersigned on April 15, 2005, at the Annual
Meeting of Stockholders to be held at the Hotel Sofitel, located at 223 Twin Dolphin Drive, Redwood
Shores, CA, on Friday, June 3, 2005 at 9:00 a.m., Pacific Time, and at any adjournments or
postponements thereof.
THIS PROXY WILL BE VOTED AS DIRECTED ON THE REVERSE SIDE. WHEN NO CHOICE IS INDICATED, THIS PROXY
WILL BE VOTED FOR THE ELECTION OF ALL NOMINEES LISTED IN PROPOSAL NO. 1 AND FOR PROPOSAL NO. 2.
Internet and Telephone Voting Instructions
You can vote by telephone OR Internet! Available 24 Hours a day 7 days a week!
Instead of mailing your proxy, you may choose one of the two voting methods outlined below to vote your proxy. Have this proxy card in hand when you call.
To vote using the Telephone (within U.S. and Canada)
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Call toll free 1-866-536-4457 in the United States or Canada any time on a touch
tone telephone. There is NO CHARGE to you for the call. |
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Follow the simple instructions provided by the recorded message. |
To vote using the Internet
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Go to the following web site: |
WWW.COMPUTERSHARE.COM/US/PROXY
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Enter the information requested on your computer screen and follow the simple instructions. |
If you vote by telephone or the Internet, please DO NOT mail back this proxy card.
Proxies submitted by telephone or the Internet must be received by 5:30 p.m., Central Time on June 2, 2005.
THANK YOU FOR VOTING