exv10w1






Exhibit 10.1




EMPLOYMENT AGREEMENT




     This Amended and Restated Employment Agreement (“Agreement”) is made as of the Effective Date
between Cincinnati Bell Inc. (“Employer”) and Theodore H. Torbeck (“Employee”). For
purposes of this Agreement, the “Effective Date” means the date this agreement is signed by
Employer.


Employer and Employee agree as follows:



1. Employment. By this Agreement, Employer and Employee set forth the terms of Employer’s
employment of Employee on and after the Effective Date. Any prior agreements or understandings
with respect to Employee’s employment by Employer are canceled as of the Effective Date.
Notwithstanding the preceding sentence, except as provided in Section 13 of this Agreement, all
stock options, restricted shares and other long term incentive awards granted to Employee prior to
the Effective Date, benefit plans in which Employee is eligible for participation and any Employer
policies to which Employee is subject shall continue in effect in accordance with their respective
terms and shall not be modified, amended or cancelled by this Agreement.



2. Term of Agreement. The term of this Agreement initially shall be the one year period
commencing on the Effective Date. On the first anniversary of the Effective Date and on each
subsequent anniversary of the Effective Date, the term of this Agreement automatically shall be
extended for a period of one additional year. Notwithstanding the foregoing, the term of this
Agreement is subject to termination as provided in Section 13.



3. Duties.




     A. Employee will serve as President and General Manager for the Cincinnati Bell Communications
Group, or in such other equivalent capacity as may be designated by the Chief Executive Officer of
Employer. Employee will report to the Chief Executive Officer of Employer or to such other officer
as the Chief Executive Officer of Employer may direct.



     B. Employee shall furnish such managerial, executive, financial, technical and other skills,
advice, and assistance in operating Employer and its Affiliates as Employer may reasonably request.
For purposes of this Agreement, “Affiliate” means each corporation or organization that is deemed
to be a single employer with Employer under Section 414(b) or (c) of the Internal Revenue Code of
1986, as amended (the “Code”) (i.e., as part of a controlled group of corporations that
includes Employer or under common control with Employer).



     C. Employee shall also perform such other duties, consistent with the provisions of Section
3.A., as are reasonably assigned to Employee by the Chief Executive Officer of Employer.



     D. Employee shall devote Employee’s entire time, attention and energies to the business of
Employer and its Affiliates. The words “entire time, attention and energies” are intended to mean
that Employee shall devote Employee’s full effort during reasonable working hours to the business
of Employer and its Affiliates and shall devote at least 40 hours per week to the business of
Employer and its Affiliates. Employee shall travel to such places as are necessary in the
performance of Employee’s duties.



1









 




4. Compensation.




     A. Employee shall receive a base salary (the “Base Salary”) of at least $700,000 per year,
payable not less frequently than monthly, for each year during the term of this Agreement, subject
to proration for any partial year. Such Base Salary, and all other amounts payable under this
Agreement, shall be subject to withholding as required by law.



     B. In addition to the Base Salary, Employee shall be eligible to receive an annual bonus (the
“Bonus”) for each calendar year for which services are performed under this Agreement. Any Bonus
for a calendar year shall be payable after the conclusion of the calendar year in accordance with
Employer’s regular bonus payment policies. Each year, Employee shall be given a Bonus target of
not less than $700,000, subject to proration for a partial year. (For calendar year 2010 and only
for calendar year 2010, Employee shall be paid a bonus which shall be the higher of, $700,000 or
the actual bonus earned in 2010 calculated on the basis of the performance metrics applicable to
Named Executive Officers of Cincinnati Bell Inc. for plan year 2010 and this calculation will be
based upon an assumed 12 months of participation in the Bonus plan for 2010). The Bonus target
shall be established from time to time by Employer’s Compensation Committee if Employee is a named
executive officer for purposes of Employer’s annual proxy statement or is otherwise an executive
officer whose compensation is determined by the Compensation Committee, or, if Employee is not so
subject, then in accordance with the provisions of Employer’s then existing annual incentive plan
or any similar plan made available to employees of Employer (“annual incentive plan”) in which
Employee participates. Any Bonus award to Employee shall further be subject to the terms and
conditions of any such applicable annual incentive plan.



     C. In addition, if this Agreement remains in effect at the time of the specified grants,
Employee shall be provided the following equity grants: 300,000 common shares as of his start date;
restricted stock valued at $1,800,000 in January 2011; restricted stock valued at $1,800,000 as of
January 2012; restricted stock valued at $900,000 as of January 2013. These equity grants are
intended by the Employer to offset equity value subject to forfeiture by the Employee due to his
acceptance of employment with Employer. If Employee realizes the full or partial value of equity
subject to this anticipated forfeiture, the dollar amount of this realized value will be offset
directly against the value of the restricted stock made available to Employee under this agreement.
These stock grants are provided pursuant to the terms of the Cincinnati Bell Inc. 2007 Long Term
Incentive Plan and all provisions of said plan are applicable.



     D. On at least an annual basis, Employee shall receive a formal performance review and be
considered for Base Salary and/or Bonus target increases.


5. Expenses. All reasonable and necessary expenses incurred by Employee in the course of
the performance of Employee’s duties to Employer shall be reimbursable in accordance with
Employer’s then current travel and expense policies.



6. Benefits.




     A. While Employee remains in the employ of Employer, Employee shall be eligible to participate
in all of the various employee benefit plans and programs, which are made available to similarly
situated officers of Employer, in accordance with the eligibility provisions and other terms and
conditions of such plans and programs.



2









 





     B. Notwithstanding anything contained herein to the contrary, the Base Salary and any Bonuses
otherwise payable to Employee shall be reduced by any benefits paid to Employee by Employer under
any disability plans made available to Employee by Employer (“Disability Plans”).



     C. In each year of this Agreement, Employee will be eligible to be considered for a grant of
awards under Employer’s 2007 Long Term Incentive Plan and/or any similar plan made available to
employees of Employer.


7. Confidentiality. Employer and its Affiliates are engaged in the telecommunications
industry within the U.S. Employee acknowledges that in the course of employment with the Employer,
Employee will be entrusted with or obtain access to information proprietary to Employer and its
Affiliates with respect to the following (all of which information is referred to hereinafter
collectively as the “Information”); the organization and management of Employer and its Affiliates;
the names, addresses, buying habits and other special information regarding past, present and
potential customers, employees and suppliers of Employer and its Affiliates; customer and supplier
contracts and transactions or price lists of Employer, its Affiliates and their suppliers;
products, services, programs and processes sold, licensed or developed by Employer or its
Affiliates; technical data, plans and specifications, and present and/or future development
projects of Employer and its Affiliates; financial and/or marketing data respecting the conduct of
the present or future phases of business of Employer and its Affiliates; computer programs, systems
and/or software; ideas, inventions, trademarks, trade secrets, business information, know-how,
processes, improvements, designs, redesigns, discoveries and developments of Employer and its
Affiliates; and other information considered confidential by any of the Employer, its Affiliates or
customers or suppliers of Employer and its Affiliates. At all times during the term of this
Agreement and thereafter, Employee agrees to retain the Information in absolute confidence and not
to disclose the Information to any person or organization except as required in the performance of
Employee’s duties for Employer, without the express written consent of Employer; provided that
Employee’s obligation of confidentiality shall not extend to any Information which becomes
generally available to the public other than as a result of disclosure by Employee.



8. New Developments. All ideas, inventions, discoveries, concepts, trade secrets,
trademarks, service marks or other developments or improvements, whether patentable or not,
conceived by Employee, alone or with others, at any time during the term of Employee’s employment,
whether or not during working hours or on Employer’s premises, which are within the scope of or
related to the business operations of Employer or its Affiliates (“New Developments”), shall be and
remain the exclusive property of Employer. Employee agrees that any New Developments which, within
one year after the cessation of employment with Employer, are made, disclosed, reduced to a
tangible or written form or description or are reduced to practice by Employee and which are based
upon, utilize or incorporate Information shall, as between Employee and Employer, be presumed to
have been made during Employee’s employment by Employer. Employee further agrees that Employee
will not, during the term of Employee’s employment with Employer, improperly use or disclose any
proprietary information or trade secrets of any former employer or other person or entity and that
Employee will not bring onto Employer premises any unpublished document or proprietary information
belonging to any such employer, person or entity unless consented to in writing by such employer,
person or entity.







3









 








     At all times during the term of this Agreement and thereafter, Employee shall do all things
reasonably necessary to ensure ownership of such New Developments by Employer, including the
execution of documents assigning and transferring to Employer all of Employee’s rights, title and
interest in and to such New Developments and the execution of all documents required to enable
Employer to file and obtain patents, trademarks, service marks and copyrights in the United States
and foreign countries on any of such New Developments.


9. Surrender of Material Upon Termination. Employee hereby agrees that upon cessation of
Employee’s employment, for whatever reason and whether voluntary or involuntary, Employee will
immediately surrender to Employer all of the property and other things of value in his possession
or in the possession of any person or entity under Employee’s control that are the property of
Employer or any of its Affiliates, including without any limitation all personal notes, drawings,
manuals, documents, photographs or the like, including copies and derivatives thereof, and e-mails
and other electronic and digital information of all types regardless of where or the type of device
on which such materials may be stored by Employee, relating directly or indirectly to any
Information, materials or New Developments, or relating directly or indirectly to the business of
Employer or any of its Affiliates.



10. Remedies.




     A. Employer and Employee hereby acknowledge and agree that the services rendered by Employee
to Employer, the information disclosed to Employee during and by virtue of Employee’s employment
and Employee’s commitments and obligations to Employer and its Affiliates herein are of a special,
unique and extraordinary character, and that the breach of any provision of this Agreement by
Employee will cause Employer irreparable injury and damage, and consequently the Employer shall be
entitled to, in addition to all other remedies available to it, injunctive and equitable relief to
prevent a breach of Sections 7, 8, 9, 11 and 12 of this Agreement and to secure the enforcement of
this Agreement.



     B. Except as provided in Section 10.A., the parties hereto agree to submit to final and
binding arbitration any dispute, claim or controversy, whether for breach of this Agreement or for
violation of any of Employee’s statutorily created or protected rights, arising between the parties
that either party would have been otherwise entitled to file or pursue in court or before any
administrative agency (herein “claim”), and each party waives all right to sue the other party.



          (i) This agreement to arbitrate and any resulting arbitration award are enforceable under and
subject to the Federal Arbitration Act, 9 U.S.C. § 1 et seq. (“FAA”). If the FAA is held not to
apply for any reason, then Ohio Revised Code Chapter 271l regarding the enforceability of
arbitration agreements and awards will govern this Agreement and the arbitration award.




          (ii) (a) All of a party’s claims must be presented at a single arbitration hearing. Any claim
not raised at the arbitration hearing is waived and released. The arbitration hearing will take
place in Cincinnati, Ohio.




               (b) The arbitration process will be governed by the Employment Dispute Resolution Rules of the
American Arbitration Association (“AAA”) except to the extent they are modified by this Agreement.
In the event that any provisions of this Section 10 are



4









 




determined by AAA to be unenforceable or impermissibly contrary to AAA rules, then this Section 10
shall be modified as necessary to comply with AAA requirements.




               (c) Employee has had an opportunity to review the AAA rules and the requirements that Employee
must pay a filing fee for which Employer has agreed to split on an equal basis.



               (d) The arbitrator will be selected from a panel of arbitrators chosen by the AAA. After the
filing of a Request for Arbitration, the AAA will send simultaneously to Employer and Employee an
identical list of names of five persons chosen from the panel. Each party will have 10 days from
the transmittal date in which to strike up to two names, number the remaining names in order of
preference and return the list to the AAA.



               (e) Any pre-hearing disputes will be presented to the arbitrator for expeditious, final and
binding resolution.



               (f) The award of the arbitrator will be in writing and will set forth each issue considered
and the arbitrator’s finding of fact and conclusions of law as to each such issue.



               (g) The remedy and relief that may be granted by the arbitrator to Employee are limited to
lost wages, benefits, cease and desist and affirmative relief, compensatory, liquidated and
punitive damages and reasonable attorney’s fees, and will not include reinstatement or promotion.
If the arbitrator would have awarded reinstatement or promotion, but for the prohibition in this
Agreement, the arbitrator may award front pay. The arbitrator may assess to either party, or
split, the arbitrator’s fee and expenses and the cost of the transcript, if any, in accordance with
the arbitrator’s determination of the merits of each party’s position, but each party will bear any
cost for its witnesses and proof.



               (h) Employer and Employee recognize that a primary benefit each derives from arbitration is
avoiding the delay and costs normally associated with litigation. Therefore, neither party will be
entitled to conduct any discovery prior to the arbitration hearing except that: (i) Employer will
furnish Employee with copies of all non-privileged documents in Employee’s personnel file; (ii) if
the claim is for discharge, Employee will furnish Employer with records of earnings and benefits
relating to Employee’s subsequent employment (including self-employment) and all documents relating
to Employee’s efforts to obtain subsequent employment; (iii) the parties will exchange copies of
all documents they intend to introduce as evidence at the arbitration hearing at least 10 days
prior to such hearing; (iv) Employee will be allowed (at Employee’s expense) to take the
depositions, for a period not to exceed four hours each, of two representatives of Employer, and
Employer will be allowed (at its expense) to depose Employee for a period not to exceed four hours;
and (v) Employer or Employee may ask the arbitrator to grant additional discovery to the extent
permitted by AAA rules upon a showing that such discovery is necessary.



               (i) Nothing herein will prevent either party from taking the deposition of any witness where
the sale purpose for taking the deposition is to use the deposition in lieu of the witness
testifying at the hearing and the witness is, in good faith, unavailable to testify in person at
the hearing due to poor health, residency and employment more than 50 miles from the hearing site,
conflicting travel plans or other comparable reason.



5









 





               (j) Arbitration must be requested in writing no later than 6 months from the date of the
party’s knowledge of the matter disputed by the claim. A party’s failure to initiate arbitration
within the time limits herein will be considered a waiver and release by that party with respect to
any claim subject to arbitration under this Agreement.



               (k) Employer and Employee consent that judgment upon the arbitration award may be entered in
any federal or state court that has jurisdiction.



               (1) Except as provided in Section 10.A., neither party will commence or pursue any litigation
on any claim that is or was subject to arbitration under this Agreement.



               (m) All aspects of any arbitration procedure under this Agreement, including the hearing and
the record of the proceedings, are confidential and will not be open to the public, except to the
extent the parties agree otherwise in writing, or as may be appropriate in any subsequent
proceedings between the parties, or as may otherwise be appropriate in response to a governmental
agency or legal process or as may be required to be disclosed by Employer pursuant to applicable
law, rule or regulation to which Employer is subject, including requirements of the Securities and
Exchange Commission and any stock exchanges on which Employer’s securities are listed.


11. Covenant Not to Compete, No Interference; No Solicitation. For purposes of this
Section 11 only, the: term “Employer” shall mean, collectively, Employer and each of its
Affiliates. At all times during the term of this Agreement and during the two year period
following cessation of Employee’s employment with Employer for any reason (or if this period is
unenforceable by law, then for such period as shall be enforceable), Employee will not engage in
any business offering services related to the current business of Employer, whether as a principal,
partner, joint venture, agent, employee, salesman, consultant, director or officer, where such
position would involve Employee in any business activity in competition with Employer. This
restriction will be limited to the geographical area where Employer is then engaged in such
competing business activity or to such other geographical area as a court shall find reasonably
necessary to protect the goodwill and business of Employer.




     During the two year period following cessation of Employee’s employment with Employer for any
reason (or if this period is unenforceable by law, then for such period as shall be enforceable),
Employee will not interfere with or adversely affect, either directly or indirectly, Employer’s
relationships with any person, firm, association, corporation or other entity which is known by
Employee to be, or is included on any listing to which Employee had access during the course of
employment, as a customer, client, supplier, consultant or employee of Employer and that Employee
will not divert or change, or attempt to divert or change, any such relationship to the detriment
of Employer or to the benefit of any other person, firm, association, corporation or other entity.



     During the two year period following cessation of Employee’s employment with Employer for any
reason (or if this period is unenforceable by law, then for such period as shall be enforceable),
Employee shall not, without the prior written consent of Employer, accept employment, as an
employee, consultant or otherwise, with any company or entity which is a supplier of Employer at
any time during the final year of Employee’s employment with Employer.



6









 





     Employee will not, during or at any time within two years after the cessation of Employee’s
employment with Employer, induce or seek to induce any other employee of Employer to terminate his
or her employment relationship with Employer.



     Employee acknowledges and agrees that the covenants, restrictions, agreements and obligations
set forth herein are founded upon valuable consideration and, with respect to the covenants,
restrictions, agreements and obligations set forth in this Section 11, are reasonable in duration
and geographic scope. The time period and geographical area set forth in this Section 10 are each
divisible and separable, and, in the event that the covenants not to compete and/or not to divert
business or employees contained therein are judicially held invalid or unenforceable as to such
time period and/or geographical area, they will be valid and enforceable in such geographical
area(s) and for such time period(s) which the court determines to be reasonable and enforceable.
Employee agrees that in the event that any court of competent jurisdiction determines that the
above covenants are invalid or unenforceable to join with Employer in requesting such court to
construe the applicable provision by limiting or reducing it so as to be enforceable to the extent
compatible with the then applicable law. Furthermore, it is agreed that any period of restriction
or covenant hereinabove stated shall not include any period of violation or period of time required
for litigation or arbitration to enforce such restrictions or covenants.


12. Goodwill. During the term of this Agreement and thereafter, Employee will not
disparage Employer or any of its Affiliates in any way which could adversely affect the goodwill,
reputation and business relationships of Employer or any of its Affiliates with the public
generally, or with any of their customers, suppliers or employees, and Employer will not disparage
Employee. Employee understands and agrees that Employer shall be entitled to make any such public
disclosures as are required by applicable law, rule or regulation regarding Employee, including
termination of Employee’s employment with Employer, and that any public disclosures so made by
Employer and other statements materially consistent with such public disclosures shall not be
restricted in any manner by this Section 12.



13. Termination.




     A. (i) Employer or Employee may terminate this Agreement upon Employee’s failure or inability
to perform the services required hereunder, because of any physical or mental infirmity for which
Employee receives disability benefits under any Disability Plans, over a period of one hundred
twenty consecutive working days during any twelve consecutive month period (a “Terminating
Disability”).



          (ii) If Employer or Employee elects to terminate this Agreement in the event of a Terminating
Disability, such termination shall be effective immediately upon the giving of written notice by
the terminating party to the other.




          (iii) Upon the termination of this Agreement on account of Terminating Disability, Employer
shall pay Employee Employee’s accrued compensation hereunder, whether Base Salary, Bonus or
otherwise (subject to offset for any amounts received pursuant to the Disability Plans), to the
date of termination. In the event of a the Employer’s termination of this Agreement due to a
Terminating Disability, Employer shall provide Employee with a lump sum cash payment as specified
in section 13 D of this agreement and the Employee shall waive the right to participate in any
disability benefit plan maintained by the Employer. Furthermore, Employee shall continue to accrue
service as an employee for purposes of vesting under any






7









 







outstanding incentive awards granted to Employee, as may be set forth in the applicable incentive
plan or related award letter. The award agreement which will grant the restricted stock awards
specified in Section 4 C of this Agreement will provide that subsequent to a termination of
employment (except for cause or the employee’s resignation), the defined “current term” of two
years from the date of termination will apply to the lapse of restrictions on restricted stock
granted prior to the termination date.




          (iv) If the parties elect not to terminate this Agreement upon an event of a Terminating
Disability and Employee returns to active employment with Employer prior to such a termination, or
if such disability exists for less than one hundred twenty consecutive working days, the provisions
of this Agreement shall remain in full force and effect.




     B. This Agreement terminates immediately and automatically on the death of Employee, provided,
however, that Employee’s estate shall be paid Employee’s accrued compensation hereunder, whether
Base Salary, Bonus or otherwise, to the date of death.



     C. Employer may terminate this Agreement immediately, upon written notice to Employee, for
Cause. For purposes of this Agreement, Employer shall have “Cause” to terminate this Agreement
only if Employer’s Board of Directors determines that there has been fraud, misappropriation,
embezzlement or misconduct constituting serious criminal activity on the part of Employee. Upon
termination for Cause, Employee shall be entitled to receive only Employee’s accrued compensation
hereunder, whether Base Salary, Bonus or otherwise, to the date of termination.



     D. Employer may terminate this Agreement immediately, upon written notice to Employee for any
reason other than those set forth in Sections 13.A., B. and C., provided, however, that Employer
shall have no right to terminate this Agreement under this Section 13.D. within one year after a
Change in Control. In addition, Employee may terminate this Agreement immediately, upon written
notice to Employer, as a result of a Constructive Termination, provided, however, that Employee
shall have no right to terminate this Agreement under this Section 13.D. within one year after a
Change in Control. In the event of a termination of this Agreement by Employer, or by Employee as
a result of a Constructive Termination, under this Section 13.D.:



          (i) within five days after (and not before) the date which is six months after Employee’s
termination of employment with Employer, Employer shall pay Employee a lump sum cash payment
specified as follows: if the Employer terminates this Agreement in calendar year 2011 the Employee
shall receive a lump sum cash payment equal to four (4) times the annual Base Salary in effect at
the time of the termination; and if the Employer terminates this Agreement in Calendar year 2012
the Employee shall receive a lump sum cash payment equal to three (3) times the annual Base Salary
in effect at the time of the termination; and if the Employer terminates this agreement in
calendar year 2013 the Employee shall receive a lump sum cash payment equal to two (2) times the
annual Base Salary in effect at the time of the termination; and if the Employer terminates this
agreement in calendar year 2014 or beyond, the Employee shall receive annual cash compensation
accrued through the date of the termination including a prorated amount of the then applicable
annual bonus target.




          (ii) for purposes of any outstanding stock option issued by Employer to Employee, outstanding
restricted stock issued by Employer to Employee or other outstanding






8









 







incentive award granted by Employer to Employee, Employee’s employment with Employer shall
not be deemed to have terminated until the end of the Current Term;




          (iii) if applicable, an amount equal to the sum of (a) any forfeitable benefits of Employee
under any nonqualified (i.e., not qualified under Code Section 401(a)) pension, profit
sharing, savings or deferred compensation plan of Employer or any Affiliate which would have
vested prior to the end of the Current Term if this Agreement had not terminated, plus (b) any
additional vested benefits which would have accrued for Employee under any nonqualified defined
benefit pension plan if this Agreement had not terminated prior to the end of the Current Term and
if Employee’s annual Base Salary and annual Bonus target had neither increased nor decreased after
such termination, shall be payable by Employer at the same time and in the same manner as such
benefits would have been paid under such plan or plans had such benefits become vested and accrued
under such plan or plans at the time of the termination of this Agreement;




          (iv) if applicable, an amount equal to the sum of (a) any forfeitable benefits of Employee
under any qualified (i.e., qualified under Code Section 401(a)) pension, profit sharing,
401(k) or deferred compensation plan of Employer or any Affiliate which would have vested prior to
the end of the Current Term if this Agreement had not terminated, plus (b) any additional vested
benefits which would have accrued for Employee under any qualified defined benefit pension plan if
this Agreement had not terminated prior to the end of the Current Term and if Employee’s annual
Base Salary and annual Bonus target had neither increased nor decreased after such termination,
shall be paid by Employer from its general assets (and not under such plan or plans) in one lump
sum within five days after (and not before) the date which is six months after Employee’s
termination of employment with Employer; and




          (v) for the remainder of the Current Term, Employer shall continue to provide Employee with
medical, dental, vision and group term life coverage comparable to the medical, dental, vision and
group term life coverage in effect for Employee immediately prior to the termination of this
Agreement (with the cost of such benefits shared between Employee and Employer on a basis
comparable to the cost-sharing of such benefits immediately prior to the termination of this
Agreement), and, to the extent that Employee would have been eligible for any post-retirement
medical, dental, vision or group term life benefits from Employer if Employee had continued in
employment through the end of the Current Term, Employer shall provide such post-retirement
benefits to Employee after the end of the Current Term.




     E. This Agreement shall terminate automatically in the event and at the time that both there
is a Change in Control and either (1) Employee elects to terminate his employment with Employer
within one year after the Change in Control as a result of a Constructive Termination or (2)
Employee’s employment with Employer is actually terminated by Employer within one year after the
Change in Control for any reason other than those set forth in Sections 13.A., B. and C. In the
event of a termination of this Agreement under this Section 13.E.:



          (i) within five days after (and not before) the date which is six months after Employee’s
termination of employment with Employer, Employer shall pay Employee in a lump sum cash payment an
amount equal to the product obtained by multiplying (a) the sum of the annual Base Salary rate in
effect at the time of the termination of this Agreement and the annual Bonus target in effect at
the time of such termination by (b) two;







9









 








          (ii) all outstanding stock options and other incentive awards issued by Employer to Employee
that are not vested and exercisable at the time of the termination of this Agreement shall become
immediately vested and exercisable (and Employee shall be afforded the opportunity to exercise
them until the earlier of (a) the latest date, determined in accordance with the terms of such
stock options or awards, that would apply if such stock options or awards had become vested and
exercisable immediately before the termination of this Agreement or (b) the end of the Current
Term) and the restrictions applicable to all outstanding restricted stock issued by Employer to
Employee shall lapse upon the termination of this Agreement;




          (iii) an amount equal to the sum of (a) any forfeitable benefits of Employee under any
nonqualified (i.e., not qualified under Code Section 401(a)) pension, profit sharing,
savings or deferred compensation plan of Employer or any Affiliate which would have vested prior
to the end of the Current Term if this Agreement had not terminated, plus (b) any additional
vested benefits which would have accrued for Employee under any nonqualified defined benefit
pension plan if this Agreement had not terminated prior to the end of the Current Term and if
Employee’s annual Base Salary and annual Bonus target had neither increased nor decreased after
such termination, shall be payable by Employer at the same time and in the same manner as such
benefits would have been paid under such plan or plans had such benefits become vested and accrued
under such plan or plans at the time of the termination of this Agreement;




          (iv) an amount equal to the sum of (a) any forfeitable benefits of Employee under any
qualified (i.e., qualified under Code Section 401(a)) pension, profit sharing, 401(k) or
deferred compensation plan of Employer or any Affiliate which would have vested prior to the end
of the Current Term if this Agreement had not terminated, plus (b) any additional vested benefits
which would have accrued for Employee under any qualified defined benefit pension plan if this
Agreement had not terminated prior to the end of the Current Term and if Employee’s annual Base
Salary and annual Bonus target had neither increased nor decreased after such termination, shall
be paid by Employer from its general assets (and not under such plan or plans) in one lump sum
within five days after (and not before) the date which is six months after Employee’s termination
of employment with Employer;




          (v) for the remainder of the Current Term, Employer shall continue to provide Employee with
medical, dental, vision and group term life coverage comparable to the medical, dental, vision and
group term life coverage in effect for Employee immediately prior to the termination of this
Agreement (with the cost of such benefits shared between Employee and Employer on a basis
comparable to the cost-sharing of such benefits immediately prior to the termination of this
Agreement), and, to the extent that Employee would have been eligible for any post-retirement
medical, dental, vision or group term life benefits from Employer if Employee had continued in
employment through the end of the Current Term, Employer shall provide such post-retirement
benefits to Employee after the end of the Current Term.




     F. Employee may resign upon 60 days’ prior written notice to Employer. In the event of a
resignation under this Section 13.F., this Agreement shall terminate and Employee shall be entitled
to receive Employee’s Base Salary through the date of termination, any Bonus earned but not paid at
the time of termination and any other vested compensation or benefits called for under any
compensation plan or program of Employer.



     G. Upon termination of this Agreement as a result of an event of termination described in
this Section 13 and except for Employer’s payment of the required payments under



10









 




this Section 13 (including any Base Salary accrued through the date of termination, any Bonus
earned for the year preceding the year in which the termination occurs and any nonforfeitable
amounts payable under any employee plan), all further compensation under this Agreement shall
terminate. Employee further agrees that as a condition precedent to Employee’s receipt of
payments under this Section 13 (other than any Base Salary accrued through the date of
termination, any Bonus earned for the year preceding the year in which the termination occurs and
all payments pursuant to Section 13.E.), upon the request of Employer and by a reasonable deadline
set by Employer (to ensure that payments can be made by the dates specified in this Section 13
following the expiration of the time for revocation of such release as permitted by law), Employee
will execute and not revoke a release of claims against Employer, which release shall contain
customary and appropriate terms and conditions as determined in good faith by Employer.




     H. The termination of this Agreement shall not amend, alter or modify the rights and
obligations of the parties under Sections 7, 8, 9, 10, 11 and 12 hereof, the terms of which shall
survive the termination of this Agreement.



     I. To the extent provided below, the following provisions apply under this Section 13 and the
other provisions of the Agreement.



          (i) Notwithstanding any other provision of this Agreement, for purposes of Sections 13.D and
13.E., “Current Term” means the two year period beginning at the time of the termination of this
Agreement.




          (ii) For purposes of Sections 13.D. and 13.E., “Change in Control” means a Change in Control
as defined under the Cincinnati Bell Inc. Executive Deferred Compensation Plan (as such plan is
amended and restated effective as of January 1, 2005 and as it may thereafter be amended).




          (iii) For purposes of Section 13.D. and 13.E., “Constructive Termination” shall be deemed to
have occurred if, without Employee’s consent, there is a material reduction by Employer in
Employee’s authority, reporting relationship or responsibilities, there is a reduction by Employer
in Employee’s Base Salary or Bonus target or Employee is required by Employer to relocate from the
Greater Cincinnati, Ohio Area by 50 or more miles.




          (iv) When an amount (referred to in this Section 13.I.(iv) as the “principal sum”) that is
payable under Section 13.D.(i), 13.D.(iv), 13.E.(i), or 13.E.(iv) within five days after the date
which is six months after Employee’s termination of employment with Employer is paid, such payment
shall also include an amount that is equal to the amount of interest that would have been earned
by such principal sum for the period from the date of Employee’s termination of employment with
Employer to the date which is six months after Employee’s termination of employment had such
principal sum earned interest for such period at an annual rate of interest of 3.5%.




          (v) To the extent that any of the benefits applicable to medical, dental and vision coverage
provided to Employee under Section 13.D.(v) or 13.E.(v) (referred to in this Section 13.I. as
“healthcare plan benefits”) are subject to federal income taxation, the following conditions shall
apply:







11









 








               (a) the amount of healthcare plan benefits provided or paid during any tax year of Employee
under Section 13.D.(v) or 13.E.(vi) shall not affect the amount of healthcare plan benefits that
are provided or eligible for payment in any other tax years of Employee (disregarding any limit on
the amount of medical expenses, as defined in Code Section 213(d), that may be paid or reimbursed
over some or all of the period in which such coverage is in effect because of a lifetime, annual
or similar limit on any covered person’s expenses that can be paid or reimbursed under Employer’s
health care plans under which the terms of such coverage is determined);



               (b) the payment or reimbursement of an expense for healthcare plan benefits that is eligible
for payment or reimbursement shall not be made prior to the date immediately following the date
which is six months after Employee’s termination of employment with Employer and shall in any
event be made no later than the last day of the tax year of Employee next following the tax year
of Employee in which the expense is incurred; and



               (c) Employee’s right to healthcare plan benefits shall not be subject to liquidation or
exchange for any other benefit.



          (vi) For purposes of this Agreement (including but not limited to Sections 13.D.(iii), (iv)
and (v) and 13.E.(iii), (iv), and (v), any reference to the termination of this Agreement or to
the termination of Employee’s employment with Employer shall mean and require that, as of the date
of such termination, Employee’s services for Employer and its Affiliates shall have completely
ceased or that Employee shall have otherwise separated from service with Employer and its
Affiliates within the meaning of Treasury Regulation Section 1.409-1(h).



14. Assignment. As this is an agreement for personal services involving a relation of
confidence and a trust between Employer and Employee, all rights and duties of Employee arising
under this Agreement, and the Agreement itself, are non-assignable by Employee.



15. Notices. Any notice required or permitted to be given under this Agreement shall be
sufficient if in writing and if delivered personally or by certified mail to Employee at Employee’s
place of residence as then recorded on the books of Employer or to Employer at its principal
office.



16. Waiver. No waiver or modification of this Agreement or the terms contained herein
shall be valid unless in writing and duly executed by the party to be charged therewith. The
waiver by any party hereto of a breach of any provision of this Agreement by the other party shall
not operate or be construed as a waiver of any subsequent breach by such party.



17. Governing Law. This agreement shall be governed by the laws of the State of Ohio and,
to the extent applicable, federal law.



18. Entire Agreement. This Agreement contains the entire agreement of the parties with
respect to Employee’s employment by Employer. There are no other contracts, agreements or
understandings, whether oral or written, existing between them except as contained or referred to
in this Agreement.







12









 







19. Severability. In case anyone or more of the provisions of this Agreement is held to be
invalid, illegal or unenforceable in any respect, such invalidity, illegality or other
enforceability shall not affect any other provisions hereof, and this Agreement shall be construed
as if such invalid, illegal or unenforceable provisions have never been contained herein.



20. Successors and Assigns. Subject to the requirements of Paragraph 14 above, this
Agreement shall be binding upon Employee, Employer and Employer’s successors and assigns.



21. Confidentiality of Agreement Terms. The terms of this Agreement shall be held in
strict confidence by Employee and shall not be disclosed by Employee to anyone other than
Employee’s spouse, Employee’s legal counsel and Employee’s other advisors, unless required by law.
Further, except as provided in the preceding sentence, Employee shall not reveal the existence of
this Agreement or discuss its terms with any person (including but not limited to any employee of
Employer or its Affiliates) without the express authorization of the President of Employer,
provided that Employee shall advise any prospective new employer of the existence of Employee’s
non-competition, confidentiality and similar obligations under this Agreement. To the extent that
the terms of this Agreement have been disclosed by Employer, in a public filing or otherwise, the
confidentiality requirements of this Section 21 shall no longer apply to such terms.




     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the day and year first above written.



	 	 	 	 	 	 	 	 	 

	CINCINNATI BELL INC.	 	 	 	EMPLOYEE	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ John F. Cassidy
	 	 	 	/s/ Theodore H. Torbeck	 	 
	 

	 	 

John F. Cassidy
	 	 	 	 

Theodore H. Torbeck
	 	 
	 	 	Title: Chief Executive
Officer	 	 	 	Date: August 27, 2010 	 	 
	 	 	Date: September 7, 2010	 	 	 	 	 	 







13