exv10w1






Exhibit 10.1




SEVERANCE AGREEMENT AND RELEASE




     THIS SEVERANCE AGREEMENT AND RELEASE (the “Agreement”) is made this 3rd day of
September, 2009, by and between John D. Filipowicz (“Employee”) and RCN Telecom Services, Inc.
(“Company”), together with each and every one of its predecessors, successors, directors, officers,
employees and agents, whether present or former (collectively the “Releasees”).



     WHEREAS, Employee’s employment by the Employer will terminate effective August 21, 2009
(“Separation Date”);



     WHEREAS, the parties desire that Employee’s separation be on an amicable basis;



     In consideration of the mutual covenants and obligations contained herein, Employee and
Company, each intending to be legally bound, agree as follows:



     1. Separation Benefits. In consideration for the releases and other covenants set
forth in this Agreement, the Company will provide Employee with the separation payment(s) and
benefit(s) set forth on Exhibit A (the “Separation Benefits”). Employee acknowledges that the
Company has no previous obligation to provide Employee the Separation Benefits.



     2. Acknowledgement. Employee acknowledges that he or she has received all
compensation due from the Company, including all vacation pay and other compensation due. Employee
acknowledges that, if applicable, he or she has received proper compensation for any overtime hours
worked. Employee acknowledges that he or she has been granted any leave time to which he or she
believes he or she was entitled under the Family and Medical Leave Act or other laws.



     3. Employee’s Release. Employee, on behalf of himself or herself, and on behalf of
his or her descendants, dependents, heirs, executors, administrators, assigns, and successors
hereby generally releases and discharges the Releasees from any and all suits, causes of action,
complaints, obligations, demands, or claims of any kind, whether in law or in equity, direct or
indirect, known or unknown, suspected or unsuspected (hereinafter “claims”), which Employee ever
had or now has against the Releasees, or any one of them, arising out of or relating to any matter,
thing or event occurring up to and including the date of this Agreement. Employee’s release
specifically includes, but is not limited to:



          a. any and all claims for wages and benefits including, without limitation, salary, stock,
options, commissions, royalties, license fees, health and welfare benefits, severance pay, vacation
pay, and bonuses;




          b. any and all claims for wrongful discharge, breach of contract (whether express or implied),
or for breach of the implied covenant of good faith and fair dealing;




 









 





          c. any and all claims for alleged employment discrimination on the basis of age, race, color,
religion, sex, national origin, veteran status, disability and/or handicap, pregnancy, childbirth
or related medical conditions, marital status and any and all other claims in violation of any
federal, state or local statute, ordinance, judicial precedent or executive order, including but
not limited to claims under the following statutes: Title VII of the Civil Rights Act of 1964, 42
U.S.C. §2000e et seq., the Civil Rights Act of 1866, 42 U.S.C. §1981, the Age
Discrimination in Employment Act, 29 U.S.C. §621 et seq., the Older Workers
Benefit Protection Act, 29 U.S.C. §626(f), the Americans with Disabilities Act, 42 U.S.C. §12101
et seq., the Family and Medical Leave Act of 1993, 29 U.S.C. §2601 et seq., the
Employee Retirement Income Security Act of 1974, 29 U.S.C. §1001 et seq., the Virginia
Human Rights Act, Virginia Code § 2.1-714 et seq., or any comparable statute of any other
state, country, or locality;




          d. any and all claims under any federal, state or local statute or law;




          e. any and all claims in tort (including but not limited to any claims for misrepresentation,
defamation, interference with contract or prospective economic advantage, intentional or negligent
infliction of emotional distress, duress, loss of consortium, invasion of privacy and negligence);
and




          f. any and all claims for attorneys’ fees and costs.




     4. Effect of Release. Employee agrees and acknowledges:



          a. that this Agreement is intended to be a general release that extinguishes all claims by
Employee against Releasees;




          b. that Employee is waiving any claims against Releasees arising under all federal, state and
local statutes, ordinances and common law, including but not limited to any and all claims alleging
personal injury, emotional distress or other torts, to the fullest extent permitted by law;




          c. that Employee is waiving all claims against Releasees, known or unknown, arising or
occurring prior to and including the date of Employee’s execution of this Agreement;




          d. that by signing (and not revoking) this Agreement, Employee is permanently giving up,
surrendering, and waiving any claim that Releasees subjected him to discrimination or harassment
because of age, took any other adverse action against Employee because of age, or violated any
other provision of the ADEA (or any similar law) in connection with Employee’s employment or
termination from employment;




          f. that the Separation Benefits that Employee will receive in exchange for Employee’s waiver
of the claims specified herein exceeds anything of value to which Employee is already entitled;




          g. that Employee was hereby informed by the Company in writing to consult with an attorney,
and that Employee had at least 21 days to consider this Agreement;




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          h. that Employee has entered into this Agreement knowingly and voluntarily with full
understanding of its terms and after having had the opportunity to seek and receive advice from
counsel of Employee’s choosing; and




          i. that Employee has had a reasonable period of time within which to consider this Agreement.



Employee agrees not to apply for or seek employment by the Company. Neither this release nor the
promise not to sue set out below should be construed, however, to prevent Employee from filing a
claim based on rights that cannot be waived as a matter of law, such as, but not limited to, the
right to claims for vested benefits under ERISA; the right to continued benefits in accordance with
COBRA; any claim to receive workers’ compensation benefits or unemployment insurance, in accordance
with applicable law; the right to challenge the knowing and voluntary nature of this Agreement
under the Older Workers Benefit Protection Act (“OWBPA”); any claim to enforce the terms of this
Agreement; or any claim which cannot be waived as a matter of law.




     5. Covenant Not to Sue. Employee affirms that no charge, complaint or action exists
in any forum brought by or on behalf of Employee against the Releasees and that Employee has not
assigned any existing or potential claim that Employee purports to release to any third party.
Further, Employee, on behalf of himself or herself, and his or her descendants, dependents, heirs,
executors, administrators, assigns, and successors covenants that Employee will not at any time
hereafter commence, maintain, or in any way cause, or advise to be commenced or prosecuted, or
permit to be filed by any other person on her behalf, any grievance, charge, action (including any
class action), suit, or proceeding (judicial or administrative) against Company, except as such
waiver is specifically prohibited by law or regulation. Although this Agreement does not prevent
Employee from filing a charge with the Equal Employment Opportunity Commission (or similar state
agency) or participating in an investigation conducted by the Commission (or similar state agency),
any claims for personal relief, including reinstatement or monetary damages, would be barred.



     6. Remedies. All remedies at law or in equity shall be available to the Releasees for
the enforcement of this Agreement. This Agreement may be pleaded as a full bar to the enforcement
of any claim that Employee may assert against the Releasees.



     7. No Admissions. Neither the execution of this Agreement by the Releasees, nor the
terms hereof, constitute an admission by the Releasees of liability to Employee.



     8. No Disparagement. Employee agrees to refrain from making disparaging comments
about the Releasees, and further agrees not to disrupt the Releasees’ business activities in any
manner whatsoever. Company agrees to use reasonable best efforts not to make any disparaging
comments about the Employee.



     9. Confidentiality of Agreement. Employee shall not disclose or publicize the terms
or fact of this Agreement, directly or indirectly, to any person or entity, except to his or her
accountant, attorney, spouse, and to others as required by law.



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     10. Cooperation. Employee agrees to cooperate fully and promptly with any inquiries
he gets from the Company, its Board of Directors, or any committee thereof pertaining to any and
all matters relating to the management, operations, and/or financial affairs of the Company. Such
cooperation shall include truthful interviews as requested by the Company and the providing of all
requested documents, electronic data and/or other information. The Company will reimburse
Employee for all reasonable expenses associated his cooperation.



     11. Confidentiality; Non-Solicitation. In consideration for the consideration which
Employee has or will receive from the Company under this Agreement, Employee agrees to be bound by
the Restrictive Covenants set forth below.



          a. Definitions. Capitalized terms used herein will have the meanings set forth in the
preamble of this Agreement, or as set forth below:




               (1) “Proprietary Information” means confidential, proprietary, business and technical
information or trade secrets of the Company or of any parent, subsidiary or affiliate of the
Company which are not generally known or accessible to the public. Such Proprietary Information
shall include, but shall not be limited to, the following items and information relating to the
following items: (a) computer codes or instructions (including source and object code listings,
program logic algorithms, subroutines, modules or other subparts of computer programs and related
documentation, including program notation), computer processing systems and techniques, all
computer inputs and outputs (regardless of the media on which stored or located), hardware and
software configurations, designs, architecture and interfaces, (b) business research, studies,
procedures and costs, (c) financial data, (d) policy information, (e) sales and marketing data,
methods, plans and efforts, and market research information, (f) the identities of the Company’s
actual and prospective customers (including identifying information such as name, address and
telephone number), contractors and suppliers, (g) the terms of contracts and agreements with
customers, contractors and suppliers, (h) the needs and requirements of, and the Company’s course
of dealing with, actual or prospective customers, contractors and suppliers, (i) personnel
information, and (j) pricing information. Failure by the Company to mark any of the Proprietary
Information as confidential or proprietary shall not affect its status as Proprietary Information
under the terms of this Agreement.



               (2) “Restricted Period” means the twelve month period following the Employee’s
Separation Date.



               (3) “Restrictive Covenants” means the provisions contained in Section 11 of this
Agreement.



          b. Non-Solicitation. Employee shall not, during the Restricted Period, influence or
attempt to influence any person to either (1) terminate or modify any employment, consulting,
director, agency or other arrangement with the Company, or (2) employ or retain, or arrange to have
any other person or entity employ or retain, any person who has been employed or retained by the
Company as an Employee, consultant, agent or director of the Company at any time during the
Restricted Period.




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          c. Confidentiality. Employee recognizes and acknowledges that the Proprietary
Information is a valuable, special and unique asset of the business of the Company. As a result,
both during the period of Employee’s employment and thereafter, Employee shall not, without the
prior written consent of the Company, for any reason either directly or indirectly divulge to any
third party or use for his own benefit, or for any purpose other than the exclusive benefit of the
Company, any Proprietary Information revealed, obtained or developed in the course of his
employment by the Company, except as may be required by law. If Employee or any of his or her
representatives become legally compelled to disclose any of the Proprietary Information, Employee
will provide the Company with prompt written notice so that the Company may seek a protective order
or other appropriate remedy. Employee also recognizes that Employee continues to be bound by the
Company’s Code of Conduct and its provisions concerning confidentiality.




          d. Property. All right, title and interest in and to Proprietary Information shall be
and remain the sole and exclusive property of the Company. Employee shall not make, retain,
remove, disclose and/or distribute any copies of any documents, records, notebooks, files,
correspondence, reports, memoranda or similar materials of or containing Proprietary Information,
or other materials or property of any kind belonging to the Company for any reason whatsoever and
shall not divulge to any third person the nature of and/or contents of any of the foregoing or of
any other oral or written information to which he may have had access or with which for any reason
he may have become familiar. Upon the termination of his or her employment with the Company,
Employee shall leave with or return to the Company all originals and copies of the foregoing then
in his possession, whether prepared by Employee or by others. 




     12. Rights and Remedies Upon Breach.



          a. Specific Enforcement. Employee acknowledges that the Restrictive Covenants are
reasonable and necessary to protect the legitimate interests of the Company and its affiliates and
that the Company would not have entered into this Agreement in the absence of such restrictions.
Employee also acknowledges that any breach by him or her, willfully or otherwise, of the
Restrictive Covenants will cause continuing and irreparable injury to the Company for which
monetary damages would not be an adequate remedy. Employee shall not, in any action or proceeding
to enforce any of the provisions of this Agreement, assert the claim or defense that such an
adequate remedy at law exists. In the event of any such breach by Employee, the Company shall have
the right to enforce the Restrictive Covenants by seeking injunctive or other relief in any court,
without any requirement that a bond or other security be posted, and this Agreement shall not in
any way limit remedies of law or in equity otherwise available to the Company. If an action at law
or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party
shall be entitled to recover, in addition to any other relief, reasonable attorneys’ fees, costs
and disbursements.




          b. Accounting. If Employee willfully breaches, or threatens to commit a breach of any
of the Restrictive Covenants, the Company will have the right and remedy to require Employee to
account for and pay over to the Company all compensation, profits, monies, accruals, increments or
other benefits derived or received by Employee as the result of any action constituting a breach of
the Restrictive Covenants. This right and remedy




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will be in addition to, and not in lieu of, any other rights and remedies available to the
Company under law or in equity.




          c. Judicial Modification. If any court determines that any of the Restrictive
Covenants, or any part thereof, is unenforceable because of the duration or scope of such
provision, such court shall have the power to modify such provision and, in its modified form, such
provision shall then be enforceable.




     13. Disclosure of Restrictive Covenants. Employee agrees to disclose the existence
and terms of the restrictive covenants set forth in Section 11 to any employer that Employee may
work for during the Restricted Period. Employee further agrees that the Company has the right to
make such disclosure to any future employer of Employee or for any other legitimate business
purpose.



     14. Enforceability. If any court holds the Restrictive Covenants unenforceable by
reason of their breadth or scope or otherwise, it is the intention of the parties hereto that such
determination not bar or in any way affect the right of the Company to the relief provided above in
the courts of any other jurisdiction within the geographical scope of such Restrictive Covenants.



     15. Essential Terms. Employee understands and acknowledges that the promises in
paragraphs 5, 8, 9, 10 and 11 are a material inducement for Releasees to enter this Agreement and
are of the essence of this Agreement. Employee therefore agrees that if he or she should breach
any of the provisions of the aforementioned paragraphs, it will be a material breach of the
Agreement, entitling Company (in addition to any other remedies available) to not make any payments
that are still outstanding, to costs and fees for enforcement of the breached provision(s), and to
the return of any payments made to Employee pursuant to this Agreement, except that Employee may
retain (or be paid) $1,000 as consideration for the release. This Agreement will in all other
respects remain in full force and effect.



     16. Advice of Counsel; Revocation Period; Effective Date. Employee is hereby
advised to seek the advice of counsel. Employee acknowledges that he is acting of his own free
will, that he has been afforded a reasonable time to read and review the terms of the Agreement,
and that he is voluntarily entering into this Agreement with full knowledge of its provisions and
effects. Employee intends that this Agreement shall not be subject to any claim for duress.
Employee may revoke this Agreement during the seven (7) day period following his execution of this
Agreement. This Agreement shall not be effective or enforceable until the 8th day following
Employee’s execution and non-revocation of this Agreement. If Employee revokes this Agreement, the
parties shall have no obligations under this Agreement. Employee may revoke this Agreement by
giving written notice of such revocation to the General Counsel at:



General Counsel

RCN Corporation

196 Van Buren Street

Herndon, VA 20170




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     17. Fees and Costs. The parties shall bear their own attorneys’ fees and
costs.



     18. Entire Agreement. This Agreement contains the entire agreement of the parties with
respect to the subject matter hereof, supersedes any prior agreements or understandings with
respect to the subject matter hereof, and shall be binding upon their respective heirs, executors,
administrators, successors and assigns.



     19. Severability. If any term or provision of this Agreement shall be held to be
invalid or unenforceable for any reason, the validity or enforceability of the remaining terms or
provisions shall not be affected, and such term or provision shall be deemed modified to the extent
necessary to make it enforceable.



     20. Amendments. Neither this Agreement nor any term hereof may be orally changed,
waived, discharged, or terminated, and may be amended only by a written agreement between the
parties hereto.



     21. Governing Law. This Agreement shall be governed by the laws of the Commonwealth
of Virginia, without regard to the conflict of law principles of any jurisdiction.



     22. Legally Binding. The terms of this Agreement contained herein are contractual,
and not a mere recital.



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     IN WITNESS WHEREOF, the parties, acknowledging that they are acting of their own free will,
have caused the execution of this Agreement as of this day and year first written below.



	 	 	 	 	 
	 	 	 
	 

	 	     John D. Filipowicz	 	 
	 
	 	 	 	 
	Date:
	 	 	 	 
	 
	 	 	 	 
	By:

	 	RCN TELECOM SERVICES, INC.	 	 
	 
	 	 	 	 
	 

	 	 

Jennifer McGarey
	 	 
	 
	 	 	 	 
	Title:	 	Vice President, Human Resources & Acting General Counsel
	 
	 	 	 	 
	Date:

	 	 
 

	 	 






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EXHIBIT A




SEPARATION BENEFITS




     1. 12 Months Salary Continuation. The Company will pay Employee separation payments
in the total amount of $250,000, less federal, state and local tax withholdings and any other
deductions required by law or previously authorized by Employee, payable in a single lump payment
commencing within 30 days after Employee delivers to the Company an executed copy of this
Agreement.



     2. Benefits Continuation. The Company will continue Employee’s participation in all
medical, dental and vision plans in which Employee was enrolled as of the Separation Date. The
Company will continue the coverage and pay that portion of the premium paid by the Company during
Employee’s employment until the earlier of December 31, 2010 or the Benefits Expiration Date
(defined below). Employee’s portion of the costs for any such continued benefits shall be deducted
from payments to Employee described in Section 1 of this Exhibit A (or, if such amounts are
unavailable or insufficient, Employee shall pay such amounts as otherwise directed by the Company).
Employee is obligated to inform the Company within 10 days of becoming eligible for benefit
coverage through another employer, through his spouse’s employer, or otherwise, with all medical,
dental and vision plan coverage ending as of the last day of the month as of which Employee becomes
eligible for such other benefit coverage (the “Benefits Expiration Date”). Beginning on the date
that the Company no longer provides subsidized benefit coverage pursuant to this Agreement,
Employee shall be eligible for health insurance coverage pursuant to the terms of the Consolidated
Omnibus Budget Reconciliation Act of 1985( “COBRA”);



     3. Additional payment in lieu of vacation. The Company will pay Employee an amount
equal to 55.45 hours of base pay as compensation for the vacation time Employee would have accrued
if he had remained employed through December 31, 2009.



     4. 2009 Annual Performance Bonus. The Company shall pay Employee his 2009 annual
bonus pursuant to the Company’s 2009 Short Term Incentive Plan (“Bonus Plan”) attributable to
Employee’s employment with the Company for the period from January 1, 2009 through the Separation
Date. The parties agree and acknowledge that Employee’s annual bonus target is fifty percent (50%)
of Employee’s eligible salary from January 1, 2009 through the Separation Date. Employee’s bonus
payment will be based on calculations as defined in the Bonus Plan as in effect on the Separation
Date. The Company will pay the bonus payment, if any, to Employee at the time, in the same form,
and under the same terms that the Company generally makes payment to the employees of the Company
under the Bonus Plan.



     5. 12 Months of Equity Vesting. For purposes of vesting in equity awards made
pursuant to the Company’s 2005 Stock Compensation Plan (the “Plan”), the Company will treat
Employee as if he remained employed through the 12 month period following the Separation Date. Any
option (or portion thereof) that vests pursuant to this Section 4 shall terminate at 5:00 p.m.
(local Virginia time) on the 180th calendar day following the date such option (or portion



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thereof) vests pursuant to this Agreement (the “Equity Cancellation Date”).
Furthermore, the Equity Cancellation Date for all options vested prior to the Separation Date will
be February 21, 2010. Any terminated option shall be cancelled and shall have no further force or
effect. Any Plan awards of performance-based restricted stock or restricted stock units scheduled
to vest during this 12 month time period will remain subject to applicable performance-based
criteria as described under the Plan and award agreements. Except as expressly provided herein,
the terms of the Plan and applicable award agreements shall govern all of Employee’s outstanding
Plan awards.




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